Institutional, Tax Administration, Social and Investment (INSTANSI) DPL 2

closed

The Second Institutional Strengthening for Social Inclusion (Second Institutional, Tax Administration, Social and Investment) Development Policy Loan (INSTANSI DPL-2) Project in the Republic of Indonesia continues the series of the first single-tranche that began in 2012. The goal of the INSTANSI DPL series is to assist the Government of Indonesia to achieve its medium-term growth, poverty reduction, and shared prosperity objectives by supporting measures to enhance Indonesia's capacity and institutions for targeting poverty reduction measures, introducing a major social insurance program, and enhancing the management of public finances for better service delivery. The operation was previously envisioned to be the second of a two-year, programmatic DPL series. However, the government has recently indicated the possibility of extending the series from two to three years. Tentative triggers for a third operation have been developed. The INSTANSI DPL-2 Project supports a set of policy actions surrounding the following two pillars: (i) enhancing poverty alleviation and shared prosperity efforts through improved governance and institutional accountability, better measurement and targeting of the poor and vulnerable in social assistance programs, and implementation of a new national social security system (Sistem Jaminan Sosial Nasional, SJSN); and (ii) strengthening public financial management (PFM) through improvements in the medium-term results orientation of the budget process, the introduction of a more efficient and effective automated budget and treasury system, streamlining of budget execution procedures, and improved accounting, audit, tax administration and sub-national fiscal management.