Economic and financial policy

SECO focuses its interventions in economic and financial policy on two areas of particular importance: reform of public finance and strengthening of the financial sector. Both are essential for economic growth and fighting poverty.

Stable economic framework conditions are fundamental for a country's sustainable growth and a precondition for effectively fighting poverty. SECO supports the development of such conditions in its partner countries with two complementary action areas:

  • It assists in the planning of growth-conducive economic reforms, particularly in the area of public finance.
  • It promotes the development of a stable and well developed financial sector.

Targeted technical and financial assistance (general and sector-based budgetary assistance) support such reforms, resulting in greater transparency and better economic governance within the public sector. To work in these areas, SECO builds on its experience and internationally proven practices.

Document showing a household’s budget

This contributes to good governance and transparency in managing public resources as well as stability in the fiscal policy environment (monetary policy, public finances, banking system).

The SECO’s worldwide engagement

Efficient and Effective Use of Public Resources

SECO aims to contribute to Indonesia’s public sector reforms, as defined in the Mid-term Development Plan (RPJMN 2015-2019). It will specifically support the Indonesian government in the implementation of its public finance management (PFM) reform which aims at creating fiscal space via revenue collection and energy subsidy reform to allow for higher investment in infrastructure and social welfare programmes. It will also contribute to the optimisation of the “contributive, stable and inclusive role of the national financial services sector” in line with the Indonesian Financial Services Sector Master Plan 2015-2019. SECO will support economic policy reforms and improved financial policy that lead to broader resource mobilisation, more reliable management of public finances, and ultimately transparent and efficient use of public resources. SECO’s activities will assist the government to better mobilise resources through an improvement of tax policy, collection and administration. SECO will further provide support to improve the sustainable and inclusive use of resources in a more transparent, effective and targeted manner on national as well as sub-national level. Furthermore SECO will contribute to improving the regulation and supervision of the Indonesian financial sector as the basis for a stable, diversified and competitive financial market.