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Raising Development Impact through Evaluation

Indonesia: Financial Market Development and Integration Program

Evaluation Document | 31 January 2018

The Financial Market Development and Integration Program was formulated to support the government’s key reforms under the Capital Market and Nonbank Financial Industry Master Plan (CMNMP) 2010–2014. The CMNMP aimed to deepen the capital market, expand access to nonbank financing, and broaden the investor base. The plan’s functional focus was increasing linkages among the contractual savings subsector, and funding arrangements that are compliant with Islamic sharia law and the traditional capital markets. The program built on the accomplishments of the post-program partnership framework (also called P3F) of subprogram 2 of the Capital Market Development Program Cluster. The program was a result of ADB’s long-standing engagement with Bapepam-LK, the country’s supervisory agency for capital markets and nonbank financial institutions. The program’s value addition was the transformation of the Bapepam-LK into OJK, a unified and independent regulator of the finance sector. A stand-alone policy-based modality was used to support the costs of transitional arrangements that arose from the government’s reform agenda.

This report validates the completion report's assessment of the program. IED overall assessment: Less than successful.