Inter and intra government relations

The existence of a national sector strategy that serves as a blueprint to identify progress and near-term and future reforms needed to grow the sector is another reason for the suitability of the PBL programmatic approach. Government coordination and ownership of reforms articulated through a series of national sector strategies are necessary to ensure that financial sector development is based on predetermined steps, with each one supported by interagency coordination to achieve broad support for reforms.

With financial services playing a key role in supporting the growth of the real economy while promoting inclusive finance, a comprehensive reform approach supported by technical assistance (TA) is required to make the financial sector more inclusive. As the sector continues to grow and ADB funding is limited, TA and strong development partner coordination are essential to ensure financial resources are strategically targeted, to avoid overlapping or overcrowding of assistance in particular areas at the expense of others.

Indonesia needs better interoperability among the tiers of its government. In relation to public health, the effectiveness of the government’s initial response to the pandemic was limited by conflicting approaches. The lack of coordination within government; as evidenced particularly by conflicting public messages around social distancing especially in the early stages of the pandemic. These coordination issues were more apparent in the vertical relations between tiers of government than at inter-ministerial levels.