Loans 2192/2193: Local Government Finance and Governance Reform Sector Development Program

The Republic of Indonesia has applied for a loan from the Asian Development Bank (ADB) towards the cost of the Local Government Finance and Governance Reform Sector Development Program. The loan was approved 3 November 2005.

The objective of the Program is to enhance the effectiveness and efficiency of delivery of basic public services by strengthening the policy, legal, and regulatory framework for decentralization as well as developing capacities at the local government level in Indonesia.

The Project Loan consists of five components:
  1. upgrade and expand electronic access to the regional financial information system by local governments;
  2. computerize the new Directorate General of Regional Financial Management at the Ministry of Home Affairs to enhance oversight of public expenditure and financial management;
  3. develop and implement regional financial management information systems in 71 local governments;
  4. streamline and computerize the system at the Ministry of Finance for review of local government regulations (perdas) and draft perdas on taxes and charges for consistency with higher laws and regulations;
  5. develop certification program at Ministry of Finance for regional financial administrators

Procurement

Program Loan:
The loan proceeds will be used to finance the full foreign exchange costs (excluding local duties and taxes) of items produced and procured in ADB member countries, excluding ineligible items and imports financed by other bilateral and multilateral sources.

Project Loan:
Procurement of goods and services will be in accordance with ADB's Guidelines for Procurement.

Through International Competitive Bidding:
  1. Hardware and software including LAN servers, for 100 sites for Regional Financial Information System
  2. Hardware and software for 71 local governments, including LAN and servers for Regional Financial Management Information System

Through Local Competitive Bidding:
Hardware and software including LANs and servers for users for Financial Management Information for Directorate General Regional Financial Management in Ministry of Home Affairs

Consulting Services

Project Loan:
Approximately 3,266 person-months of consulting services will be required, consulting services will be required, consisting of 3,242 person-months of domestic consulting services and 24 person-months of international consulting services. Consultants to be financed from the proceeds of the ADB Loan will be recruited in accordance with the Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants.

Interested bidders from ADB's member countries who wish obtain additional information may contact:

For Program Loan:

Coordinating Ministry for Economic Affairs
Contact : Mr. Yoopi Abimanyu
Assistant Deputy
Fax. No. : (62-21) 345 6817
Tel. No. : (62-21) 345 6714
Address : Main Building, 3rd Floor
Jl. Lapangan Banteng Timur 2-4
Jakarta 10710

For Project Loan:

Ministry of Home Affairs
Contact: Daeng Nazier
Director General
Regional Financial Management
Address: Jl. Medan Merdeka Utara No. 7
Jakarta 10110


General Procurement Notice