FPEMP Phase 2 - Fiscal and Public Expenditure Management Programme (FPEMP)

completed

This is the second of three planned phases of the Fiscal and Public Expenditure Management Program (FPEM) program financing. The Republic of Indonesia, represented by the Ministry of Finance, will be provided with a promotional loan as in the first phase (38463 / 202084143). The program is being co-financed in parallel with the ADB as lead donor. The program financing (policy-based loan) aims to support the Indonesian government in its reform process in the area of fiscal policy / public finances. This is intended to contribute to improved expenditure management, particularly in the social sectors and in the infrastructure sector. The focus of the program is on reforms to improve - budget planning with an orientation towards the national development goals and UN Sustainable Development Goals (SDGs), - public expenditure management at the national level, - the systems for fiscal transfers and expenditure management at the local government level. The reforms to be financed are agreed by ADB and KfW with the partners in a policy matrix and their fulfillment serves as a prerequisite for disbursement.