Indonesia Secures USD 650 Million in ADB Financing for Fiscal, Digital Reforms

RRI.CO.ID, Jakarta – Indonesia has received new financing support from the Asian Development Bank (ADB) to strengthen local fiscal systems and accelerate the government’s digital transformation.

The ADB has approved USD 650 million in financing through the Decentralization Acceleration Program to Improve Local Governance. The program aims to enhance coordination between the central government and local administrations in managing public finances.

ADB Director for Indonesia, Bobur Alimov, said that strengthening fiscal and digital systems will improve the quality of government services. “A progressively strengthened national fiscal and digital architecture enables the delivery of better services to the public,” Alimov said in a statement quoted by Antara in Jakarta on Friday, September 18, 2026.

The financing will support the development of a national digital platform to integrate and report government fiscal data. The system is expected to improve financial management coordination between the central government and local administrations.

The program also aims to strengthen local administrations' fiscal capacity through a more equitable property tax assessment system. This policy is intended to strengthen local revenue sources while improving the quality of government administration.

Beyond fiscal aspects, the program includes strengthening budgeting processes to account for the protection needs of women and girls. Local administrations will also receive support to incorporate disaster risk considerations into their budgeting processes.

The ADB views the strengthening of local fiscal and administrative capacity as a critical component of improving governance. Digitalization is expected to help governments generate more integrated fiscal data to support planning and policymaking.

The USD 650 million in financing also reinforces Indonesia’s decentralization agenda by linking fiscal reform, government digitization, and improved public services. The program positions local administrative capacity as a key factor in improving public financial management. **