Indonesia Fiscal Reform DPL 2

The objective of this operation is to support fiscal sector reforms that will assist the Government of Indonesia to achieve its medium-term economic development and poverty reduction goals. The operation aims to do so through supporting reforms in three key policy areas: Pillar A: Improving the Quality of Spending - by improving the composition of spending, budget execution and efficiency of spending; Pillar B: Strengthening Revenue Administration - by increasing tax administration efficiency, compliance management and audit capability, and reducing the cost of paying taxes; Pillar C: Enhancing Tax Policy - by increasing revenue potential and economic efficiency of tax policy. This Development Policy Operation is part of the World Bank Group's overall support to the Government's efforts to improve revenue collection and the quality of spending, which are central to its overall development agenda.