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Indonesia: Fiscal and Public Expenditure Management Program (Subprogram 3)

Sovereign (Public) Project | 50168-003 Status: Approved

The program supports critical fiscal and public expenditure management reforms to improve the quality of government spending on health, education, social protection and infrastructure, and is consistent with the government's reform priorities to: (i) align the medium-term expenditure with the National Medium Term Development Plan 2015 2019 (RPJMN 2015 2019) and the Sustainable Development Goals (SDGs); (ii) enhance the national public expenditure system; and (iii) improve fiscal transfers and spending for better service delivery at the subnational government level. The proposed subprogram is aligned with the operational priorities in ADB Strategy 2030 to: (i) address poverty and reduce inequality, (ii) strengthen governance and institutional capacity and (iii) accelerate progress on gender equality.

Project Details

Project Officer
Mohd Sani Mohd Ismail Southeast Asia Department Request for information
Country
  • Indonesia
Sector
  • Public sector management
 
Project Name Fiscal and Public Expenditure Management Program (Subprogram 3)
Project Number 50168-003
Country Indonesia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3842-INO: Fiscal and Public Expenditure Management Program (Subprogram 3)
Ordinary capital resources US$ 500.00 million
Loan: Fiscal and Public Expenditure Management Program (Subprogram 3)
KfW Bankengruppe US$ 553.70 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Public sector management / Public expenditure and fiscal management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The program supports critical fiscal and public expenditure management reforms to improve the quality of government spending on health, education, social protection and infrastructure, and is consistent with the government's reform priorities to: (i) align the medium-term expenditure with the National Medium Term Development Plan 2015 2019 (RPJMN 2015 2019) and the Sustainable Development Goals (SDGs); (ii) enhance the national public expenditure system; and (iii) improve fiscal transfers and spending for better service delivery at the subnational government level. The proposed subprogram is aligned with the operational priorities in ADB Strategy 2030 to: (i) address poverty and reduce inequality, (ii) strengthen governance and institutional capacity and (iii) accelerate progress on gender equality.
Project Rationale and Linkage to Country/Regional Strategy FPEMP uses a programmatic approach which aligns ADB's support with the government's reform program over a medium- to long-term horizon. The government's medium-term strategy is to create sustainable and equitable economic growth through optimizing revenue, improving spending quality, improving subsidy schemes, and decentralizing fiscal authority. Together with the commitment to increase spending in pro-poor sectors, the government is also increasing the quality of expenditure through PEM reforms. The program aligns medium-term expenditure with the RPJMN and SDGs targets, enhances the national public expenditure system, and improves fiscal transfers and subnational governments' spending for service delivery
Impact Household income inequality reduced
Project Outcome
Description of Outcome Social sector and infrastructure spending improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Medium-term expenditure aligned with RPJMN and SDGs targets

National public expenditure system enhanced

Fiscal transfers and subnational governments' spending for service delivery improved

Status of Implementation Progress (Outputs, Activities, and Issues)
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 Mohd Sani Mohd Ismail
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Fiscal Policy Office-Ministry of Finance
[email protected]
Fiscal Policy Office-Ministry of Finance
Gedung RM Notohamiprojo, 8th floor
Jl. DR. Wahidin No. 1
Jakarta, Indonesia
Timetable
Concept Clearance 02 Aug 2016
Fact Finding 29 Apr 2019 to 08 May 2019
MRM 06 Aug 2019
Approval 25 Oct 2019
Last Review Mission -
Last PDS Update 25 Oct 2019

Loan 3842-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2019 01 Nov 2019 - 31 Aug 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,053.70 Cumulative Contract Awards
ADB 500.00 25 Oct 2019 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 553.70 25 Oct 2019 0.00 0.00 0%

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

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Procurement Plan

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