Indonesia : Fiscal and Public Expenditure Management Program (Subprogram 3)
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 20152019 (RPJMN 20152019) 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 Ismail, Mohd Sani
Southeast Asia Department
Request for information -
Country/Economy
Indonesia -
Sector
- Public sector management
| Project Name | Fiscal and Public Expenditure Management Program (Subprogram 3) | ||||||||
| Project Number | 50168-003 | ||||||||
| Country / Economy | Indonesia |
||||||||
| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan |
||||||||
| Source of Funding / Amount |
|
||||||||
| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
||||||||
| Sector / Subsector | Public sector management / Public expenditure and fiscal management |
||||||||
| Gender | 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 20152019 (RPJMN 20152019) 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 Ismail, Mohd Sani |
| 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 |
| 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 | 04 Dec 2019 | 31 Aug 2020 | - | 16 Dec 2019 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 500.00 | Cumulative Contract Awards | |||
| ADB | 500.00 | 17 Jun 2022 | 500.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 500.00 | 0.00 | 100% |
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 |
|---|---|---|
| Fiscal and Public Expenditure Management Program (Subprogram 3): Completion Report | Project/Program Completion Reports | Oct 2021 |
| Loan Agreement (Ordinary Operations) for Loan 3842-INO: Fiscal and Public Expenditure Management Program (Subprogram 3) | Loan Agreement (Ordinary Resources) | Nov 2019 |
| Fiscal and Public Expenditure Management Program (Subprogram 3): Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2019 |
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
| Title | Document Type | Document Date |
|---|---|---|
| Indonesia: Fiscal and Public Expenditure Management Program | Validations of Project Completion Reports | Jul 2022 |
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.
ADB's $500 Million Loan to Improve Public Expenditure Management in Indonesia
ADB has approved a $500 million policy-based loan to support Indonesia’s fiscal and public expenditure management reforms and improve the quality of government spending on health, education, social protection, and infrastructure.
Tenders
Contracts Awarded
Procurement Plan
None currently available.