The “PEFA Assessment of Gender-Responsive Public Financial Management (GRPFM) in Indonesia” provides a comprehensive evaluation of Indonesia’s efforts to integrate gender considerations into public financial management (PFM). It leverages the PEFA GRPFM framework to assess the extent to which Indonesia’s budgetary and financial processes contribute to reducing gender disparities and fostering gender equality.
Key Highlights:
- Regulatory and Institutional Framework:
- Indonesia has a robust regulatory framework for gender-responsive budgeting (GRB), supported by mandates from the Ministry of Finance, Ministry of Women’s Empowerment and Child Protection, Ministry of Home Affairs, and Bappenas.
- GRB efforts include the use of Gender Budget Statements (GBS) and gender tagging of budget allocations.
- Performance of GRPFM Indicators:
- Strengths: Indicators related to budget circulars, budget documentation, and tracking gender-related expenditures scored relatively high, indicating foundational mechanisms for GRPFM are in place.
- Challenges: Indicators such as sex-disaggregated performance data, public investment management, and legislative scrutiny of gender equality impacts scored low, reflecting gaps in execution and monitoring.
- Key Findings:
- While GRB mechanisms exist, their application is inconsistent, and the quality of implementation remains low.
- Monitoring and evaluation processes for GRB are underdeveloped, with limited sex-disaggregated data available for decision-making.
- Coordination among the four key driver ministries needs significant strengthening to ensure effective GRPFM practices.
- Recommendations:
- Develop a diagnostic study to target key sectors for impactful gender-responsive reforms.
- Strengthen institutional capacity in line ministries and key drivers to support GRB efforts.
- Enhance monitoring and evaluation frameworks to ensure the quality and impact of GRPFM initiatives.
Note on Preparation
This assessment was conducted by a World Bank team led by Ms. Romawaty Sinaga (Public Sector Specialist) and included Ms. Maja Bosnic (PFM and Gender Responsive Budgeting Expert), Mr. Arun Arya (Senior Public Sector Management Specialist), Mr. Hari Purnomo (Senior Public Sector Specialist), and Cut Dian Agustina (Economist). Mr. Arun Arya, as the Task Team Leader of the PFM Program in Indonesia, provided strategic guidance and mentorship throughout the preparation of this report.