Evaluation Summary - AFD’s Fiscal Reform Development Policy Loan (DPL Fiscal) to the Government of Indonesia

In Indonesia, in the fiscal sector, the AFD’s Fiscal Reform Development Policy Loan (DPL Fiscal) Series 1, 2 & 3 (CID1064-CID1071-CID1088) to the Government of Indonesia was subject to an evaluation in 2022. The Policy Matrix that was negotiated for these PBLs focused on three pillars: improving quality of spending, strengthening revenue administration and enhancing tax policy.

These PBLs were provided in support to the Medium-Term National Development Plan (RPJMN) for the period 2015-2019 focusing on improving the quality of life of the population and reducing inequalities.

The evaluation revealed that it is necessary for AFD to dedicate resources for developing a deep and operational understanding of the institutional set-up and of  policy planning and development mechanisms, leading to diagnostics, reform plans and ultimately planned legal and regulatory changes for achieving results.