MANILA, Aug 14 — The Asian Development Bank (ADB) said on Thursday it has approved a policy-based loan of US$500 million (RM2.1 billion) to strengthen Indonesia’s tax system modernisation that will enhance tax collection efficiency, improve equity, and maintain fiscal resilience to fund critical public services and long-term development goals, reported Xinhua.

The loan marks the first of three subprogrammes under the ADB’s Domestic Resource Mobilisation Programme for Indonesia, the Manila-based bank said in a press release.

“This programme marks a pivotal moment in supporting Indonesia’s fiscal sustainability agenda,” said ADB Country Director for Indonesia Jiro Tominaga.

“By modernising tax administration through digitalisation and strengthening international tax cooperation, Indonesia will be better positioned to finance its development priorities while maintaining macroeconomic stability,” said Tominaga. — Bernama-Xinhua