MPFD Working Paper on Mainstreaming the Sustainable Development Goals into national planning, budgetary and financing processes: Indonesian experience

Working paper28 May 2020

Indonesia has made substantial progress in adopting the SDGs into national agendas of planning, budgeting and financing. The Government’s commitment was confirmed through the Presidential Decree and the SDGs Roadmap with a concrete mandate to mainstream the Goals into national development frameworks, at both central and subnational levels. Continuous effort in establishing budget tagging system for SDG-related programmes and activities ensures that planning is translated into proper fiscal allocation for prioritized Goals, which also leads to effective public spending. Issues on financing gaps have been addressed through the introduction of innovative financing instruments, such as the issuance of sovereign green sukuk and the establishment of SDG Indonesia One, aimed at leveraging private financing. Despite considerable number of achievements recorded, there is room for improvement, particularly by: reconciling interrelated features of the Goals and targets through policy integration across sector and coordination enhancement among actors; improving the supporting system for better implementation of performance-based budgeting; and upscaling innovative sustainable financing instruments organized by the Government and non-State actors.