Independent evaluation confirms good results in Indonesia
Switzerland arranges for its projects and programmes to be evaluated on a regular basis. The aim is to learn from ongoing and completed projects and improve future activities. An independent evaluation from 2021 shows that Switzerland's work to strengthen the management of public finances in Indonesia has achieved its goals very well.
Only states with healthy public finances can offer their citizens good basic services. Indonesia, for example, has comparatively low tax revenues, accounting for less than ten per cent of GDP.
Accordingly, there is a lack of funds for investments and social spending. Such funds could be used to create better opportunities for training and vocational education that particularly young people need. These additional funds could also be used to improve primary healthcare. With them, Indonesia would also be able invest massively in its infrastructure – investment that is needed for the country to fully exploit its great potential for growth.
With the Public Finance Management Multi-Donor Trust Fund programme, evaluated in 2021, Switzerland is helping Indonesia to better manage its public finances and increase tax revenues. To this end, the programme is helping, for example, to digitalise Indonesia's tax system and to better monitor tax revenues. The programme is also supporting the country in making its budget gender-responsive.
Finally, the programme is helping the national financial control authorities to make budget expenditure more transparent.
The evaluation demonstrates that the programme is highly relevant, as the reforms it is supporting are priorities on the Indonesian government's agenda. The programme is also rated as coherent, effective and efficient. The evaluators expect it to help bring about lasting change in Indonesia's system of public finances.
Sri Mulyani
Minister of Finance Indonesia
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Independent evaluation confirms good results in Indonesia
