INDOMOD – an Indonesian tax-benefit microsimulation model

The aim of the project is to develop an Indonesian tax benefit microsimulation model, or ‘INDOMOD’ for in-house use by the Government of Indonesia. The project involves (i) preparing an underpinning dataset for the model using SUSENAS; (ii) collating Indonesia’s tax and benefit policy rules; (iii) converting the policies into instructions for the EUROMOD software which is the ‘engine’ for the model; (iv) validating the simulations using administrative data. The main objective is that the model will become a sustainable in-house resource for the Government of Indonesia and so it will be undertaken with key government officials from the outset. A country report and manual will be prepared and training will be provided.

Collaborators: The project is coordinated by the Ministry of Finance of the Government of Indonesia, which will set up a Working Group comprising representatives of government departments. UNICEF Indonesia and SASPRI have entered into an agreement to support the Government of Indonesia in building INDOMOD, with additional technical advice from the EUROMOD team at the University of Essex.