Indonesia: Financial Market Development and Inclusion Program (Subprogram 2)
The proposed subprogram 2 supports the government's main reform priorities in developing and making the finance sector more inclusive, and represents a medium- to long-term partnership between the Asian Development Bank (ADB), the government, and the Financial Services Authority (OJK). The government's priority areas include (i) strengthening the regulatory structure for financial stability, (ii) deepening the financial market, and (iii) enhancing financial inclusion with a focus on promoting access to financial services to poor households and women.
Project Details
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Project Officer
Jayawardana, Poornima G.W.
Southeast Asia Department
Request for information -
Country/Economy
Indonesia -
Sector
- Finance
Related Projects
| Project Name | Financial Market Development and Inclusion Program (Subprogram 2) | ||||||||||||||||||||
| Project Number | 48207-002 | ||||||||||||||||||||
| Country / Economy | Indonesia |
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| Project Status | Active | ||||||||||||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships |
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| Sector / Subsector | Finance / Finance sector development |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||||||||||||||||
| Description | The proposed subprogram 2 supports the government's main reform priorities in developing and making the finance sector more inclusive, and represents a medium- to long-term partnership between the Asian Development Bank (ADB), the government, and the Financial Services Authority (OJK). The government's priority areas include (i) strengthening the regulatory structure for financial stability, (ii) deepening the financial market, and (iii) enhancing financial inclusion with a focus on promoting access to financial services to poor households and women. | ||||||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The program includes three subprograms aligned with the government's strategy and critical finance sector reforms. The first subprogram focused on establishing the OJK as a unified and independent financial services regulator and implementing international best practices. Subprogram 2 focuses on support to the consolidated finance sector master plan and advancing OJK's fiscal independence. Responding to government concerns of rising inequality and the recommendations from the 2016 National Financial Inclusion Strategy, subprograms 2 and 3 further expand ADB's engagement in financial inclusion, with a focus on improving poor families' access to financial services, financial literacy, and consumer protection. This provides the platform for a subsequent dedicated financial inclusion program in 2020. The approach uses policy-based lending as it embeds the policy matrix within the government's policy decision-making process. The loan proceeds provide incentives for reforms. | ||||||||||||||||||||
| Impact | Annual growth rate of finance sector increased | ||||||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Development and inclusiveness of the finance sector increased |
| Progress Toward Outcome | Loan-single tranche was released on 15 Sept 2017 and was financially closed on 17 Nov 2017.TA9333-INO: VP approved an increase in TA amount on 12 Aug 2020 ($300,000). Revised TA completion date is 27 June 2022.The TA is ongoing and the following are the detailed activities.The TA has engaged i) International Financial Inclusion Expert, ii) National Financial Inclusion Project Manager, ii) National Fintech Expert, iii) International Digital Platform Development Experts, iv) International Youth Engagement Expert, v) National Experiential Financial Literacy Teacher Training Firm, and vi) International Monitoring and Evaluation Expert to support the implementation of the activities under the TA outputs of i)increasing access to finance through innovative approaches, ii) financial literacy, and iii) consumer protection. The TA completion date was first extended from 30 June 2019 to 30 June 2020 to allow time for additional activities, i.e., consultant and resource person engagements in the field of financial inclusion and the engagement of services to develop a geospacial financial services mobile application and digital financial literacy. The second extension to 27 June 2022 was to allow for a change in scope to support the expansion of the youth financial inclusion ambassadors' program (DIKA) including support for the EIFIL an OJK-ADB joint initiative to support regional development banks to promote financial inclusion, and is aligned with the Post Program Partnership Framework (2019 2024) of the FMDIP Program and the Promoting Innovative Financial Inclusion Program (PIFIP) PBL that was approved in December 2020. On 10 December 2020, ADB approved an increase in TA amount by $300,000 to support the development of the Last Mile pilot project to address the digital route-to-market strategies adopted by consumer-packaged goods (CPG) manufacturers. |
| Implementation Progress | |
| Description of Project Outputs | Regulatory structure for financial stability strengthened Financial market deepened Financial inclusion enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Loan-single tranche was released on 15 Sept 2017 and was financially closed on 17 Nov 2017.TA9333-INO: VP approved an increase in TA amount on 12 Aug 2020 ($300,000). Revised TA completion date is 27 June 2022.The TA is ongoing and the following are the detailed activities.The TA has engaged i) International Financial Inclusion Expert, ii) National Financial Inclusion Project Manager, ii) National Fintech Expert, iii) International Digital Platform Development Experts, iv) International Youth Engagement Expert, v) National Experiential Financial Literacy Teacher Training Firm, and vi) International Monitoring and Evaluation Expert to support the implementation of the activities under the TA outputs of i)increasing access to finance through innovative approaches, ii) financial literacy, and iii) consumer protection. The TA completion date was first extended from 30 June 2019 to 30 June 2020 to allow time for additional activities, i.e., consultant and resource person engagements in the field of financial inclusion and the engagement of services to develop a geospacial financial services mobile application and digital financial literacy. The second extension to 27 June 2022 was to allow for a change in scope toll support the expansion of the youth financial inclusion ambassadors' program (DIKA) including support for the EIFIL an OJK-ADB joint initiative to support regional development banks to promote financial inclusion, and is aligned with the Post Program Partnership Framework (2019 2024) of the FMDIP Program and the proposed Promoting Innovative Financial Inclusion Program (PIFIP) that was approved in December 2020. On 10 December 2020, ADB approved an increase in TA amount by $300,000 to support the development of the Last Mile pilot project to address the digital route-to-market strategies adopted by consumer-packaged goods (CPG) manufacturers. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Jayawardana, Poornima G.W. |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SERD |
| Executing Agencies |
Ministry of Finance Directorate General of Budget Financing and Risk Management Mr. Darsjah [email protected] Frans Seda Building Jln. Dr. Wahidin Raya No. 1 Jakarta 10710, Indonesia |
| Timetable | |
|---|---|
| Concept Clearance | 24 Jun 2014 |
| Fact Finding | 23 Jan 2017 to 03 Feb 2017 |
| MRM | 26 Apr 2017 |
| Approval | 28 Jun 2017 |
| Last Review Mission | - |
| Last PDS Update | 29 Mar 2021 |
Loan 3541-INO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 28 Jun 2017 | 18 Jul 2017 | 07 Sep 2017 | 31 Mar 2018 | - | 15 Nov 2017 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 400.00 | Cumulative Contract Awards | |||
| ADB | 400.00 | 01 Apr 2022 | 400.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 01 Apr 2022 | 400.00 | 0.00 | 100% |
TA 9333-INO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 28 Jun 2017 | 19 Sep 2017 | 19 Sep 2017 | 30 Jun 2019 | 27 Jun 2022 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 1,400,000.00 | 310,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,710,000.00 | 01 Apr 2022 | 1,021,600.87 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Financial Market Development and Inclusion Program: Program Completion Report | Project/Program Completion Reports | Nov 2020 |
| Loan Agreement for Loan 3541-INO: Financial Market Development and Inclusion Program - Subprogram 2 | Loan Agreement (Ordinary Resources) | Jul 2017 |
| Financial Market Development and Inclusion Program - Subprogram 2: Report and Recommendation of the President | Reports and Recommendations of the President | Jun 2017 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| National Firm for Gender-Sensitive Value Chain Study VC-FIRM-N | Firm - Consulting | Active | 12 May 2022 | 26 May 2022 |
| National Gender Expert on Women-owned SMEs | Individual - Consulting | Closed | 11 May 2022 | 17 May 2022 |
| National Gender Expert on STEM and Digital Inclusion for Women | Individual - Consulting | Closed | 04 May 2022 | 17 May 2022 |
| International Researcher and Project Coordinator | Individual - Consulting | Closed | 26 Apr 2022 | 02 May 2022 |
| International Expert (Advisor) -Team Leader | Individual - Consulting | Closed | 26 Apr 2022 | 02 May 2022 |
| National Research Assistant-Reskilling | Individual - Consulting | Closed | 26 Apr 2022 | 02 May 2022 |
| Gender Data and Finance Analyst_PIFI-SXD-N | Individual - Consulting | Closed | 15 Oct 2021 | 21 Oct 2021 |
| International Gender Expert for MSMEs Sector | Individual - Consulting | Closed | 30 Sep 2021 | 06 Oct 2021 |
| National Onground Youth Financial Inclusion Coordinator | Individual - Consulting | Closed | 31 Jul 2021 | 02 Aug 2021 |
| International Youth Financial Inclusion & Civil Society Engagement | Individual - Consulting | Closed | 31 Jul 2021 | 02 Aug 2021 |
| National IT firm- Geospatial Mobile App Developer | Firm - Consulting | Closed | 28 Jun 2019 | 12 Jul 2019 |
| Financial Inclusion Expert | Individual - Consulting | Closed | 25 Jun 2019 | 07 Jul 2019 |
| National Monitoring and Evaluation Expert | Individual - Consulting | Closed | 31 Aug 2018 | 13 Sep 2018 |
| Experiential Financial Literacy Teacher Training | Firm - Consulting | Closed | 11 Aug 2018 | 09 Sep 2018 |
| International Financial Inclusion Expert | Individual - Consulting | Closed | 09 Aug 2018 | 15 Aug 2018 |
| National Financial Inclusion Expert | Individual - Consulting | Closed | 15 Jun 2018 | 21 Jun 2018 |
| National Financial Inclusion Project Manager | Individual - Consulting | Closed | 22 May 2018 | 28 May 2018 |
| Experiential Financial Literacy Curriculum & Teacher Guide Development Expert | Individual - Consulting | Closed | 16 May 2018 | 22 May 2018 |
| International Youth Engagement Expert | Individual - Consulting | Closed | 24 Mar 2018 | 30 Mar 2018 |
| Internaitonal Financial Inclusion Expert | Individual - Consulting | Closed | 21 Feb 2018 | 27 Feb 2018 |
| Experiential Financial Literacy Curriculum & Teacher Guide Development Expert | Individual - Consulting | Closed | 17 Feb 2018 | 16 Mar 2018 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Capacity Development | Technical Assistance 9333 | 17 Mar 2021 | NFrnds Singapore Pte. Ltd.(SINGAPORE) | .77 Robinson Road, #13-00 Robinson 77 068896 Singapore | Fiscal Policy Office | 279,000.00 | — |
Procurement Plan
None currently available.