Indonesia: Precautionary Financing Facility
The $500 million precautionary financing facility was designed to support economic growth and continued reduction in the poverty incidence in Indonesia. It would assist the government to maintain key elements of its spending program and complement measures to maintain confidence in the domestic finance sector including a bond stabilization framework and macroprudential measure by Bank Indonesia to address speculative capital flows. The facility was developed through policy dialogue with the government in coordination with development partners on crisis monitoring, crisis management protocol, and other related reforms, and was part of a $5 billion financing package also supported by Australia, Japan, and the World Bank.
This report validates the completion report's assessment of the facility. IED overall assessment: Successful.