ADB, Indonesia to Strengthen Government Audits, Accountability

MANILA, PHILIPPINES - The Asian Development Bank (ADB) will provide a $57.75 million loan to improve government accountability in Indonesia, by helping equip auditors and other public finance officers with the necessary skills to perform rigorous checks at the central and local government levels.

“The focus of this project is in line with the government decentralization effort to improve the skills of auditors at the local level so that the usage of local government budget can be monitored more effectively to improve public service delivery,” said Renadi Budiman, Senior Finance Specialist at the Indonesia Resident Mission.

The Indonesian government has set an ambitious target to achieve unqualified audit opinions for all central government agencies by 2014, a complement to their priority of promoting good governance. This process began in 2000, transferring more than 30 functions and two million civil servants from the central to local governments. At the same time, all government institutions are required to implement the Government Internal Control System.

Improving governance in public financial management and public service delivery should benefit all Indonesians. The State Accountability Revitalization Project focuses on developing skills in budget planning and reporting, carrying out internal audits and managing assets. To do this, the project will improve trainer capacity, provide incentives for auditors and finance officers to improve their skills, and implement an e-learning and supporting information system.

Through training, certification, and degree programs, more than 10,000 finance officers in public institutions will meet the competency standard in their fields. The e-learning program will also scale up to certify 40,000 internal auditors for full implementation of the Government Internal Control System. In addition, the project will also establish a center of excellence for internal audit in selected local universities.

“Promoting effective and accountable institutions requires the government at central and local level to have competent and reliable public finance officers. This program aims to build the capacity of those officers,” said Rabin Hattari, a Public Management Economist at the Indonesia Resident Mission.