Indonesia: Social Security Reform and Economic Modeling Capacity Building

Sovereign Project | 42461-012

Summary

The advisory TA will finalize the design of the social security system, including contribution and benefit structure, and support key implementation aspects of the system.

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Project Name Social Security Reform and Economic Modeling Capacity Building
Project Number 42461-012
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7204-INO: Social Security Reform and Economic Modeling Capacity Building
Technical Assistance Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Health - Health insurance and subsidized health programs
Gender Equity and Mainstreaming
Description The advisory TA will finalize the design of the social security system, including contribution and benefit structure, and support key implementation aspects of the system.
Project Rationale and Linkage to Country/Regional Strategy
Impact More inclusive growth through improved and sustainable social security system
Project Outcome
Description of Outcome Government's social security system reformed and macroeconomic monitoring capacity enhanced.
Progress Toward Outcome

On the social security reform side, ADB is processing the hiring of two local actuaries (health and pension) to work with the Risk Management Unit of the Fiscal Policy Office. The actuaries will create an actuarial model for health, validate the model, conduct sensitivity analysis, and provide inputs to the EA on potential implementation and operational risks, including supply side issue of health reform. They will also udpate the White Paper with the new 2010 census data, validate the old ADB actuarial pension program, provide sensitivity analysis of the revised program, and provide inputs to the EA on potential implementation and operation risks.

On the economic capacity building, ADB has engaged an international consultant to set up a consistency framework model and to construct an Exchange Market Pressure (EMP) Index for Indonesia. The consultant will also design and deliver sustainable training and capacity-building programs on macroeconomics and international economics to staff of FPO and other relevant departments. This will include Preparation of Lecture Notes and Workshop database and delivery of Lectures and Workshops in Jakarta.

Implementation Progress
Description of Project Outputs

Social security system is finalized

FPO and RMU staff provide analytical reports on the fiscal implications and economywide effects of social security reforms to policy makers

Government's economic monitoring system is operating

Status of Implementation Progress (Outputs, Activities, and Issues) To date, the TA has engaged one national fiscal expert and one international social security expert. The international expert, who rendered his services from September 2009 to September 2010, worked closely with the Insurance Bureau and FPO focusing on finalizing the design and drafting of government regulation on pension, old-age savings and death benefit programs, and capacity building in the area of financial and actuarial analysis and National Social Security System (SJSN) program computer modeling, and supporting the government in their social security reform agenda. The TA is currently engaging an international expert on macroeconomics to provide consultancy service to enhance the existing economic monitoring system in the Fiscal Policy Office (FPO) with a focus on developing a macroeconomic consistency model following IMF's Financial Programming framework and construct an Exchange Market Pressure (EMP) Index for Indonesia.
Geographical Location National
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services International and national consultants will be recruited by the ADB on an individual basis to implement activities. A total of 48 (30 international and 18 national) person-months consultant services will be required.
Responsible ADB Officer Rabin Hattari
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Ministry of FinanceDr. Andie Megantara, Director Fiscal Policy Officeandie@depkeu.go.idBuilding B, 8th Floor JI. Dr. Wahidin 1 Jakarta 10710, Indonesia
Timetable
Concept Clearance 23 Oct 2008
Fact Finding 06 Aug 2008 to 12 Aug 2008
MRM -
Approval 10 Dec 2008
Last Review Mission -
PDS Creation Date 21 May 2009
Last PDS Update 24 May 2011

TA 7204-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2008 15 Jan 2009 15 Jan 2009 31 Dec 2010 30 Apr 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 160,000.00 0.00 0.00 0.00 960,000.00 10 Dec 2008 753,913.40

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

No documents found.


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