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Indonesia: Financial Market Development and Inclusion Program (Subprogram 2)

Sovereign (Public) Project | 48207-002 Status: Active

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

Project Officer
Poornima Gayangani Wasana Jayawardana Southeast Asia Department Request for information
Country
  • Indonesia
Sector
  • Finance
 
Project Name Financial Market Development and Inclusion Program (Subprogram 2)
Project Number 48207-002
Country Indonesia
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3541-INO: Financial Market Development and Inclusion Program (Subprogram 2)
Ordinary capital resources US$ 400.00 million
TA 9333-INO: Promoting Innovative Financial Inclusion
Technical Assistance Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Finance / Finance sector development

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 sector development 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.

The piggybacked TA became Effective on 19 Sept 2017. The TA is ongoing and 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.

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.

The piggybacked TA became Effective on 19 Sept 2017. The TA is ongoing and 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.

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 Poornima Gayangani Wasana Jayawardana
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
[email protected]NKEU.GO.ID
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 2019

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 28 Jun 2017 400.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Jun 2017 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 30 Jun 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 0.00 0.00 0.00 0.00 800,000.00 28 Jun 2017 382,018.99

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.

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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.


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Tenders

Tender Title Type Status Posting Date Deadline
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

No contracts awarded for this project were found

Procurement Plan

None currently available.