Indonesia : Selected Fiscal Issues in a New Era
Despite the substantial progress in managing its fiscal challenges post-1997 financial crisis, Indonesia's risks to the budget have not disappeared, though the Government continues to be committed to fiscal consolidation. While debt sustainability is improving, the budget remains vulnerable to shocks, and, large non-discretionary spending (interest payments, transfers to the regions, personnel spending) still constrain the use of fiscal policy for macroeconomic stabilization, and social risk protection, and, as the fiscal situation improves, and decentralization proceeds, a rethinking of resource allocation becomes necessary. This report assesses Indonesia's progress in dealing with challenges that have altered the fiscal system since the crisis, and reviews options for fiscal consolidation, as well as sectoral issues in the new decentralized environment, including public expenditure management reforms. Suggestions include an increased revenue mobilization to make the budget more risk proof, and an improved tax administration, rather than streamlining the tax structure alone, while the Government's decision to eliminate the fuel subsidy remains critical for fiscal consolidation (which has little social implications). Moreover, the large interest payments burden incurred during the crisis, is crowding out development spending, and similarly, increased transfers to local governments are limiting discretionary spending (which could be accompanied by a decrease in central development spending in areas of regional responsibilities). A refinement of the budget management system is necessary, where the Finance Law would be instrumental in establishing accountability between the Executive, and Parliament.
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FISCAL POLICY FISCAL CONSOLIDATION FISCAL CONSTRAINTS DEBT REDUCTION FINANCIAL CRISES OIL REVENUES FISCAL SUSTAINABILITY SUBSIDY REDUCTION REVENUE MOBILIZATION BUDGET PROCESS BUDGET MANAGEMENT PUBLIC SPENDING DECENTRALIZATION MACROECONOMIC STABILIZATION PUBLIC EXPENDITURES SECTORAL ADJUSTMENT REFORM POLICY RISK MANAGEMENT TAX ADMINISTRATION TAX STRUCTURES FUEL TAXATION INTEREST PAYMENTS LOCAL GOVERNMENT FINANCE LAW ACCOUNTABILITY ADB ADMINISTRATIVE EFFICIENCY ALLOCATION OF RESOURCES ANTI-CORRUPTION ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK INDONESIA BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET EXECUTION BUDGET FORMULATION BUDGET LIABILITIES BUDGET MANAGEMENT BUDGET PROCESS BUDGET REFORM BUDGETARY RESOURCES CAPITAL ADEQUACY CENTRAL AGENCIES CENTRAL GOVERNMENT CIVIL SERVICE CONSENSUS CONSOLIDATION CONSUMER PRICE INDEX CONSUMPTION TAXES COURT SYSTEM CPI CROWDING OUT CURRENT EXPENDITURES DEBT FINANCING DEBT SERVICE DECENTRALIZATION DECENTRALIZATION FRAMEWORK DECENTRALIZATION SYSTEM DECREE DEMOCRATIZATION DEVOLUTION DISTRICTS ECONOMIC CONDITIONS ECONOMIC SHOCKS ECONOMIES OF SCALE ELECTRICITY EQUALIZATION EXCHANGE RATE EXECUTION EXPENDITURE RESPONSIBILITIES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL DEFICIT FISCAL DISCIPLINE FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL SURPLUS FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT INCOME INFLATION INTEREST RATE INTEREST RATES LABOR FORCE LAWS LEGISLATION LIQUIDITY LOCAL GOVERNMENTS MACROECONOMIC STABILIZATION MATURITIES MINISTRY OF FINANCE NATIONAL PLANNING NATIONS OIL OIL PRICES POLICY DECISIONS POVERTY ALLEVIATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROFIT RATE PROPERTY ASSESSMENTS PROVINCIAL GOVERNMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC HEALTH PUBLIC MANAGEMENT PUBLIC OFFERING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REPRESENTATIVES RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING RISK MANAGEMENT ROADS SAVINGS SMALL BUSINESS SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECTORS SOCIAL SERVICES STATE BUDGET STATE POWER STATE-OWNED ENTERPRISES TAKEOVER TAX TAX ADMINISTRATION TAX ARREARS TAX BURDEN TAX COMPLIANCE TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY TRANSPORT TREASURY UNDERVALUATION VALUE ADDED FISCAL POLICY FISCAL CONSOLIDATION FISCAL CONSTRAINTS DEBT REDUCTION FINANCIAL CRISES OIL REVENUES FISCAL SUSTAINABILITY SUBSIDY REDUCTION REVENUE MOBILIZATION BUDGET PROCESS BUDGET MANAGEMENT PUBLIC SPENDING DECENTRALIZATION MACROECONOMIC STABILIZATION PUBLIC EXPENDITURES SECTORAL ADJUSTMENT REFORM POLICY RISK MANAGEMENT TAX ADMINISTRATION TAX STRUCTURES FUEL TAXATION INTEREST PAYMENTS LOCAL GOVERNMENT FINANCE LAW ACCOUNTABILITY ADB ADMINISTRATIVE EFFICIENCY ALLOCATION OF RESOURCES ANTI-CORRUPTION ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK INDONESIA BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET EXECUTION BUDGET FORMULATION BUDGET LIABILITIES BUDGET MANAGEMENT BUDGET PROCESS BUDGET REFORM BUDGETARY RESOURCES CAPITAL ADEQUACY CENTRAL AGENCIES CENTRAL GOVERNMENT CIVIL SERVICE CONSENSUS CONSOLIDATION CONSUMER PRICE INDEX CONSUMPTION TAXES COURT SYSTEM CPI CROWDING OUT CURRENT EXPENDITURES DEBT FINANCING DEBT SERVICE DECENTRALIZATION DECENTRALIZATION FRAMEWORK DECENTRALIZATION SYSTEM DECREE DEMOCRATIZATION DEVOLUTION DISTRICTS ECONOMIC CONDITIONS ECONOMIC SHOCKS ECONOMIES OF SCALE ELECTRICITY EQUALIZATION EXCHANGE RATE EXECUTION EXPENDITURE RESPONSIBILITIES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL DEFICIT FISCAL DISCIPLINE FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL SURPLUS FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT INCOME INFLATION INTEREST RATE INTEREST RATES LABOR FORCE LAWS LEGISLATION LIQUIDITY LOCAL GOVERNMENTS MACROECONOMIC STABILIZATION MATURITIES MINISTRY OF FINANCE NATIONAL PLANNING NATIONS OIL OIL PRICES POLICY DECISIONS POVERTY ALLEVIATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROFIT RATE PROPERTY ASSESSMENTS PROVINCIAL GOVERNMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC HEALTH PUBLIC MANAGEMENT PUBLIC OFFERING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REPRESENTATIVES RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING RISK MANAGEMENT ROADS SAVINGS SMALL BUSINESS SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECTORS SOCIAL SERVICES STATE BUDGET STATE POWER STATE-OWNED ENTERPRISES TAKEOVER TAX TAX ADMINISTRATION TAX ARREARS TAX BURDEN TAX COMPLIANCE TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY TRANSPORT TREASURY UNDERVALUATION VALUE ADDED |
| spellingShingle |
FISCAL POLICY FISCAL CONSOLIDATION FISCAL CONSTRAINTS DEBT REDUCTION FINANCIAL CRISES OIL REVENUES FISCAL SUSTAINABILITY SUBSIDY REDUCTION REVENUE MOBILIZATION BUDGET PROCESS BUDGET MANAGEMENT PUBLIC SPENDING DECENTRALIZATION MACROECONOMIC STABILIZATION PUBLIC EXPENDITURES SECTORAL ADJUSTMENT REFORM POLICY RISK MANAGEMENT TAX ADMINISTRATION TAX STRUCTURES FUEL TAXATION INTEREST PAYMENTS LOCAL GOVERNMENT FINANCE LAW ACCOUNTABILITY ADB ADMINISTRATIVE EFFICIENCY ALLOCATION OF RESOURCES ANTI-CORRUPTION ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK INDONESIA BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET EXECUTION BUDGET FORMULATION BUDGET LIABILITIES BUDGET MANAGEMENT BUDGET PROCESS BUDGET REFORM BUDGETARY RESOURCES CAPITAL ADEQUACY CENTRAL AGENCIES CENTRAL GOVERNMENT CIVIL SERVICE CONSENSUS CONSOLIDATION CONSUMER PRICE INDEX CONSUMPTION TAXES COURT SYSTEM CPI CROWDING OUT CURRENT EXPENDITURES DEBT FINANCING DEBT SERVICE DECENTRALIZATION DECENTRALIZATION FRAMEWORK DECENTRALIZATION SYSTEM DECREE DEMOCRATIZATION DEVOLUTION DISTRICTS ECONOMIC CONDITIONS ECONOMIC SHOCKS ECONOMIES OF SCALE ELECTRICITY EQUALIZATION EXCHANGE RATE EXECUTION EXPENDITURE RESPONSIBILITIES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL DEFICIT FISCAL DISCIPLINE FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL SURPLUS FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT INCOME INFLATION INTEREST RATE INTEREST RATES LABOR FORCE LAWS LEGISLATION LIQUIDITY LOCAL GOVERNMENTS MACROECONOMIC STABILIZATION MATURITIES MINISTRY OF FINANCE NATIONAL PLANNING NATIONS OIL OIL PRICES POLICY DECISIONS POVERTY ALLEVIATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROFIT RATE PROPERTY ASSESSMENTS PROVINCIAL GOVERNMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC HEALTH PUBLIC MANAGEMENT PUBLIC OFFERING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REPRESENTATIVES RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING RISK MANAGEMENT ROADS SAVINGS SMALL BUSINESS SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECTORS SOCIAL SERVICES STATE BUDGET STATE POWER STATE-OWNED ENTERPRISES TAKEOVER TAX TAX ADMINISTRATION TAX ARREARS TAX BURDEN TAX COMPLIANCE TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY TRANSPORT TREASURY UNDERVALUATION VALUE ADDED FISCAL POLICY FISCAL CONSOLIDATION FISCAL CONSTRAINTS DEBT REDUCTION FINANCIAL CRISES OIL REVENUES FISCAL SUSTAINABILITY SUBSIDY REDUCTION REVENUE MOBILIZATION BUDGET PROCESS BUDGET MANAGEMENT PUBLIC SPENDING DECENTRALIZATION MACROECONOMIC STABILIZATION PUBLIC EXPENDITURES SECTORAL ADJUSTMENT REFORM POLICY RISK MANAGEMENT TAX ADMINISTRATION TAX STRUCTURES FUEL TAXATION INTEREST PAYMENTS LOCAL GOVERNMENT FINANCE LAW ACCOUNTABILITY ADB ADMINISTRATIVE EFFICIENCY ALLOCATION OF RESOURCES ANTI-CORRUPTION ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK INDONESIA BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET EXECUTION BUDGET FORMULATION BUDGET LIABILITIES BUDGET MANAGEMENT BUDGET PROCESS BUDGET REFORM BUDGETARY RESOURCES CAPITAL ADEQUACY CENTRAL AGENCIES CENTRAL GOVERNMENT CIVIL SERVICE CONSENSUS CONSOLIDATION CONSUMER PRICE INDEX CONSUMPTION TAXES COURT SYSTEM CPI CROWDING OUT CURRENT EXPENDITURES DEBT FINANCING DEBT SERVICE DECENTRALIZATION DECENTRALIZATION FRAMEWORK DECENTRALIZATION SYSTEM DECREE DEMOCRATIZATION DEVOLUTION DISTRICTS ECONOMIC CONDITIONS ECONOMIC SHOCKS ECONOMIES OF SCALE ELECTRICITY EQUALIZATION EXCHANGE RATE EXECUTION EXPENDITURE RESPONSIBILITIES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL DEFICIT FISCAL DISCIPLINE FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL SURPLUS FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT INCOME INFLATION INTEREST RATE INTEREST RATES LABOR FORCE LAWS LEGISLATION LIQUIDITY LOCAL GOVERNMENTS MACROECONOMIC STABILIZATION MATURITIES MINISTRY OF FINANCE NATIONAL PLANNING NATIONS OIL OIL PRICES POLICY DECISIONS POVERTY ALLEVIATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROFIT RATE PROPERTY ASSESSMENTS PROVINCIAL GOVERNMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC HEALTH PUBLIC MANAGEMENT PUBLIC OFFERING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REPRESENTATIVES RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING RISK MANAGEMENT ROADS SAVINGS SMALL BUSINESS SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECTORS SOCIAL SERVICES STATE BUDGET STATE POWER STATE-OWNED ENTERPRISES TAKEOVER TAX TAX ADMINISTRATION TAX ARREARS TAX BURDEN TAX COMPLIANCE TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY TRANSPORT TREASURY UNDERVALUATION VALUE ADDED World Bank Indonesia : Selected Fiscal Issues in a New Era |
| description |
Despite the substantial progress in
managing its fiscal challenges post-1997 financial crisis,
Indonesia's risks to the budget have not disappeared,
though the Government continues to be committed to fiscal
consolidation. While debt sustainability is improving, the
budget remains vulnerable to shocks, and, large
non-discretionary spending (interest payments, transfers to
the regions, personnel spending) still constrain the use of
fiscal policy for macroeconomic stabilization, and social
risk protection, and, as the fiscal situation improves, and
decentralization proceeds, a rethinking of resource
allocation becomes necessary. This report assesses
Indonesia's progress in dealing with challenges that
have altered the fiscal system since the crisis, and reviews
options for fiscal consolidation, as well as sectoral issues
in the new decentralized environment, including public
expenditure management reforms. Suggestions include an
increased revenue mobilization to make the budget more risk
proof, and an improved tax administration, rather than
streamlining the tax structure alone, while the
Government's decision to eliminate the fuel subsidy
remains critical for fiscal consolidation (which has little
social implications). Moreover, the large interest payments
burden incurred during the crisis, is crowding out
development spending, and similarly, increased transfers to
local governments are limiting discretionary spending (which
could be accompanied by a decrease in central development
spending in areas of regional responsibilities). A
refinement of the budget management system is necessary,
where the Finance Law would be instrumental in establishing
accountability between the Executive, and Parliament. |
| topic_facet |
FISCAL POLICY FISCAL CONSOLIDATION FISCAL CONSTRAINTS DEBT REDUCTION FINANCIAL CRISES OIL REVENUES FISCAL SUSTAINABILITY SUBSIDY REDUCTION REVENUE MOBILIZATION BUDGET PROCESS BUDGET MANAGEMENT PUBLIC SPENDING DECENTRALIZATION MACROECONOMIC STABILIZATION PUBLIC EXPENDITURES SECTORAL ADJUSTMENT REFORM POLICY RISK MANAGEMENT TAX ADMINISTRATION TAX STRUCTURES FUEL TAXATION INTEREST PAYMENTS LOCAL GOVERNMENT FINANCE LAW ACCOUNTABILITY ADB ADMINISTRATIVE EFFICIENCY ALLOCATION OF RESOURCES ANTI-CORRUPTION ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK INDONESIA BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET EXECUTION BUDGET FORMULATION BUDGET LIABILITIES BUDGET MANAGEMENT BUDGET PROCESS BUDGET REFORM BUDGETARY RESOURCES CAPITAL ADEQUACY CENTRAL AGENCIES CENTRAL GOVERNMENT CIVIL SERVICE CONSENSUS CONSOLIDATION CONSUMER PRICE INDEX CONSUMPTION TAXES COURT SYSTEM CPI CROWDING OUT CURRENT EXPENDITURES DEBT FINANCING DEBT SERVICE DECENTRALIZATION DECENTRALIZATION FRAMEWORK DECENTRALIZATION SYSTEM DECREE DEMOCRATIZATION DEVOLUTION DISTRICTS ECONOMIC CONDITIONS ECONOMIC SHOCKS ECONOMIES OF SCALE ELECTRICITY EQUALIZATION EXCHANGE RATE EXECUTION EXPENDITURE RESPONSIBILITIES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL DEFICIT FISCAL DISCIPLINE FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL SURPLUS FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT INCOME INFLATION INTEREST RATE INTEREST RATES LABOR FORCE LAWS LEGISLATION LIQUIDITY LOCAL GOVERNMENTS MACROECONOMIC STABILIZATION MATURITIES MINISTRY OF FINANCE NATIONAL PLANNING NATIONS OIL OIL PRICES POLICY DECISIONS POVERTY ALLEVIATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROFIT RATE PROPERTY ASSESSMENTS PROVINCIAL GOVERNMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC HEALTH PUBLIC MANAGEMENT PUBLIC OFFERING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REPRESENTATIVES RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING RISK MANAGEMENT ROADS SAVINGS SMALL BUSINESS SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECTORS SOCIAL SERVICES STATE BUDGET STATE POWER STATE-OWNED ENTERPRISES TAKEOVER TAX TAX ADMINISTRATION TAX ARREARS TAX BURDEN TAX COMPLIANCE TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY TRANSPORT TREASURY UNDERVALUATION VALUE ADDED |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Indonesia : Selected Fiscal Issues in a New Era |
| title_short |
Indonesia : Selected Fiscal Issues in a New Era |
| title_full |
Indonesia : Selected Fiscal Issues in a New Era |
| title_fullStr |
Indonesia : Selected Fiscal Issues in a New Era |
| title_full_unstemmed |
Indonesia : Selected Fiscal Issues in a New Era |
| title_sort |
indonesia : selected fiscal issues in a new era |
| publisher |
Washington, DC |
| publishDate |
2003-02-14 |
| url |
http://documents.worldbank.org/curated/en/2003/02/2153167/indonesia-selected-fiscal-issues-new-era https://hdl.handle.net/10986/14886 |
| work_keys_str_mv |
AT worldbank indonesiaselectedfiscalissuesinanewera |
| _version_ |
1807157083305410560 |
| spelling |
dig-okr-10986148862024-08-08T17:48:46Z Indonesia : Selected Fiscal Issues in a New Era World Bank FISCAL POLICY FISCAL CONSOLIDATION FISCAL CONSTRAINTS DEBT REDUCTION FINANCIAL CRISES OIL REVENUES FISCAL SUSTAINABILITY SUBSIDY REDUCTION REVENUE MOBILIZATION BUDGET PROCESS BUDGET MANAGEMENT PUBLIC SPENDING DECENTRALIZATION MACROECONOMIC STABILIZATION PUBLIC EXPENDITURES SECTORAL ADJUSTMENT REFORM POLICY RISK MANAGEMENT TAX ADMINISTRATION TAX STRUCTURES FUEL TAXATION INTEREST PAYMENTS LOCAL GOVERNMENT FINANCE LAW ACCOUNTABILITY ADB ADMINISTRATIVE EFFICIENCY ALLOCATION OF RESOURCES ANTI-CORRUPTION ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BANK FOR INTERNATIONAL SETTLEMENTS BANK INDONESIA BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET EXECUTION BUDGET FORMULATION BUDGET LIABILITIES BUDGET MANAGEMENT BUDGET PROCESS BUDGET REFORM BUDGETARY RESOURCES CAPITAL ADEQUACY CENTRAL AGENCIES CENTRAL GOVERNMENT CIVIL SERVICE CONSENSUS CONSOLIDATION CONSUMER PRICE INDEX CONSUMPTION TAXES COURT SYSTEM CPI CROWDING OUT CURRENT EXPENDITURES DEBT FINANCING DEBT SERVICE DECENTRALIZATION DECENTRALIZATION FRAMEWORK DECENTRALIZATION SYSTEM DECREE DEMOCRATIZATION DEVOLUTION DISTRICTS ECONOMIC CONDITIONS ECONOMIC SHOCKS ECONOMIES OF SCALE ELECTRICITY EQUALIZATION EXCHANGE RATE EXECUTION EXPENDITURE RESPONSIBILITIES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL BALANCE FISCAL CONTROL FISCAL DEFICIT FISCAL DISCIPLINE FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY FISCAL PRESSURES FISCAL REVENUE FISCAL SITUATION FISCAL SURPLUS FISCAL SUSTAINABILITY FISCAL YEAR FORECASTS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT INCOME INFLATION INTEREST RATE INTEREST RATES LABOR FORCE LAWS LEGISLATION LIQUIDITY LOCAL GOVERNMENTS MACROECONOMIC STABILIZATION MATURITIES MINISTRY OF FINANCE NATIONAL PLANNING NATIONS OIL OIL PRICES POLICY DECISIONS POVERTY ALLEVIATION PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROFIT RATE PROPERTY ASSESSMENTS PROVINCIAL GOVERNMENTS PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC HEALTH PUBLIC MANAGEMENT PUBLIC OFFERING PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REPRESENTATIVES RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING RISK MANAGEMENT ROADS SAVINGS SMALL BUSINESS SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECTORS SOCIAL SERVICES STATE BUDGET STATE POWER STATE-OWNED ENTERPRISES TAKEOVER TAX TAX ADMINISTRATION TAX ARREARS TAX BURDEN TAX COMPLIANCE TAX POLICY TAX RATE TAX RATES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY TRANSPORT TREASURY UNDERVALUATION VALUE ADDED Despite the substantial progress in managing its fiscal challenges post-1997 financial crisis, Indonesia's risks to the budget have not disappeared, though the Government continues to be committed to fiscal consolidation. While debt sustainability is improving, the budget remains vulnerable to shocks, and, large non-discretionary spending (interest payments, transfers to the regions, personnel spending) still constrain the use of fiscal policy for macroeconomic stabilization, and social risk protection, and, as the fiscal situation improves, and decentralization proceeds, a rethinking of resource allocation becomes necessary. This report assesses Indonesia's progress in dealing with challenges that have altered the fiscal system since the crisis, and reviews options for fiscal consolidation, as well as sectoral issues in the new decentralized environment, including public expenditure management reforms. Suggestions include an increased revenue mobilization to make the budget more risk proof, and an improved tax administration, rather than streamlining the tax structure alone, while the Government's decision to eliminate the fuel subsidy remains critical for fiscal consolidation (which has little social implications). Moreover, the large interest payments burden incurred during the crisis, is crowding out development spending, and similarly, increased transfers to local governments are limiting discretionary spending (which could be accompanied by a decrease in central development spending in areas of regional responsibilities). A refinement of the budget management system is necessary, where the Finance Law would be instrumental in establishing accountability between the Executive, and Parliament. 2013-08-07T21:10:22Z 2013-08-07T21:10:22Z 2003-02-14 http://documents.worldbank.org/curated/en/2003/02/2153167/indonesia-selected-fiscal-issues-new-era https://hdl.handle.net/10986/14886 English en_US Public expenditure review (PER); CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain Washington, DC |