Asian Development Bank approves US$650 million loan for Indonesia

The Asian Development Bank (ADB) has approved a US$650 million (approximately Rp11.49 trillion) loan to Indonesia to modernize regional fiscal management, advance digital governance, and improve public service delivery across the country’s decentralized system.

Through the Accelerating Decentralization for Improved Local Governance (ADIL) subprogram, the initiative aims to strengthen coordination between central and local governments regarding public fund management. Key components include the development of a new national digital platform for fiscal data integration and reporting, as well as more equitable property tax assessments to boost regional revenue.

The framework also incorporates civil rights protections, such as gender-responsive budgeting for women and girls, and disaster risk integration. ADB Director for Indonesia Bobur Alimov noted that since 35% to 40% of total public spending—including education, healthcare, and local infrastructure—is managed at the subnational level, strengthening these systems is vital to addressing fiscal and administrative inequalities.