Maluku governor-elect and deputy governor-elect seek World Bank cooperation

Maluku Governor-elect Hendrik Lewerissa and Deputy Govenor-elect Abdullah Vanath met with representatives of World Bank in Indonesia in Indonesia at the Indonesia Stock Exchange (IDX) Building in Jakarta on Jan. 23, 2025. Said representatives include Senior Transport Kulwinder Singh Rao, Program Leader for Sustainable Development Vikas Choudary, Senior Transport Engineer Aldian, and Senior Water Supply and Sanitation Specialist Irma Magdalena Setiono.

Hendrik conveyed how the Maluku Provincial Government's fiscal ability to manage and finance development needs and public services is limited due to factors such as dependence on transfer payments from the central government, low locally-generated income (PAD), high employee spending, fiscal inequality between regions, and restrictions on access to financing.

"Fiscal limitations has hampered regional infrastructure development. [The impacts that the limited capability has caused include] the low quality of public services, especially in the education, transportation, and health sectors, and the inability of regions to respond to urgent needs, such as natural disasters," he explained.

Strategies are needed to overcome those limitations, including strategies that focus on improving PAD through tax and public service fee innovations, increasing regional spending efficiency, and strengthening collaboration with the private sector or through financing schemes with other parties, such as the World Bank.

"We expect cooperation between the World Bank and the Maluku Provincial Government, especially on several programs that serve the basic needs of the people of Maluku such as maritime transportation, clean water, as well as waste management and sanitation," said Hendrik. 

The governor also expects the World Bank to conduct a feasibility study on projects that have the potential to be financed by World Bank grant funds in Maluku Province.

In response,  the World Bank Team gave their appreciation to the governor-elect and deputy governor-elect for swiftly initiating coordination with the World Bank on basic infrastructure financing assistance for the local community. The World Bank representatives also promised to immediately schedule a visit to Maluku after Hendrik's and Vanath's inauguration.

The World Bank has historically financed development projects in member countries, including Indonesia and several of its provinces. The multinational institutions' funding went to projects such as handling clean water and stunting in Papua, protecting mangroves in North Sumatra province, as well as the Suramadu National Bridge's construction in East Java Province.

However, there are several  requirements that must be met in order for a project to be funded by the World Bank. They include the project mandated to be in line with sustainable development goals and the focus on the project being on poverty reduction, inclusive growth, and environmental sustainability.

Preparation of a comprehensive project proposal to the World Bank include technical, economic, environmental, and social feasibility studies. The project document must explain the objectives, impacts, implementation plans, and benefits. The project must comply with the World Bank's Environmental and Social Framework (ESF).