The United States of America and the Republic of Indonesia (“Government”) signed a Millennium Challenge Compact II on April 13, 2023 (“Compact II”). The Compact, which will include $649 million of grant funding from the Millennium Challenge Corporation (“MCC”) and a $49 million contribution from the Government, aims to unlock financing flows in a way that will catalyze economic growth and leverage Indonesia’s own resources. The Millennium Challenge Account – Indonesia Compact (“MCA-Indonesia II”) aims to address key root causes of costly and underdeveloped financial intermediation by improving the financing of infrastructure, particularly transport and logistics infrastructure, and increasing access to finance for micro-, small and medium enterprises. The Compact will support three projects to address the binding constraint of costly and underdeveloped financial intermediation: the Advancing Transport and Logistics Accessibility Services (“ATLAS”) Project; the Financial Markets Development Project (“FMDP”); and the Access to Finance for Women-owned / Micro-, Small and Medium Enterprises Project (“MSME Finance Project”).
MCC requires that all beneficiaries of MCC Funding, including the MCA Entity and any applicants, Bidders, Suppliers, contractors, Subcontractors, consultants, and sub-consultants under any MCC-funded contracts, observe the highest standards of ethics during the procurement and execution of such contracts. MCC’s Policy on Preventing, Detecting and Remediating Fraud and Corruption in MCC Operations (“MCC’s AFC Policy”) is applicable to all procurements and contracts involving MCC Funding and can be found on the MCC website at: https://www.mcc.gov/resources/doc/policy-fraud-and-corruption.
