Indonesia: Local Government Finance and Governance Reform (Project Loan)

Sovereign Project | 36541-023

Summary

The project loan implements reforms in public expenditure and financial management (PEFM) under phase 1 through development and upgrading of related FMIS. The project consists of five components: (i) upgrade and expand electronic access tothe regional financial information system (SIKD) by 100 local governments; (ii) computerize the new Directorate General of Regional Financial Management (DG BAKD), at the Ministry of Home Affairs to enhance oversight of PEFM reforms; (iii) develop and implement regional financial management information system (SIPKD) in 71 local governments; (iv) streamline and computerize the system at the Ministry of Finance (MOF) for review of local government regulations (perdas) and draft perdas on taxes and charges for consistency with higher laws and regulations; and (v) develop certification program at MOF for regional financial administrators.

Latest Project Documents


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Project Name Local Government Finance and Governance Reform (Project Loan)
Project Number 36541-023
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2193-INO: Local Government Finance and Governance Reform (Project Loan)
Asian Development Fund US$ 30.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Public sector management - Decentralization

Gender Equity and Mainstreaming
Description The project loan implements reforms in public expenditure and financial management (PEFM) under phase 1 through development and upgrading of related FMIS. The project consists of five components: (i) upgrade and expand electronic access tothe regional financial information system (SIKD) by 100 local governments; (ii) computerize the new Directorate General of Regional Financial Management (DG BAKD), at the Ministry of Home Affairs to enhance oversight of PEFM reforms; (iii) develop and implement regional financial management information system (SIPKD) in 71 local governments; (iv) streamline and computerize the system at the Ministry of Finance (MOF) for review of local government regulations (perdas) and draft perdas on taxes and charges for consistency with higher laws and regulations; and (v) develop certification program at MOF for regional financial administrators.
Project Rationale and Linkage to Country/Regional Strategy
Impact More effective and efficient delivery of basic public services by local governments
Project Outcome
Description of Outcome Increased accountability in management of local government finances
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Enhanced intergovernmental coordination and development of NAPFD

2. Strengthened and harmonized framework for regional autonomy

3. Strengthened, rationalized, and harmonized framework for intergovernmental fiscal relations

4. Strengthened and harmonized framework for planning, budgeting and financial management at the local government level

5. Enhanced awareness of PEFM reforms and modernization of FMIS

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Approximately 3,266 person-months of consulting services will be required, consisting of 3,242 person-months of domestic consulting services and 24 person-months of international consulting services.The detailed terms of reference will be developed by the Executing Agency with the concurrence of ADB. Consultancy services will be engaged in accordance with ADB's Guidelines on the Use of Consultants using Quality and Cost Based Selection (QCBS) method.
Procurement IT Hardware and Software
Responsible ADB Officer Rabin Hattari
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Home AffairsDrs. SusiloRegional Financial Management, BAKD, Ministry of Home Affairs
Timetable
Concept Clearance 03 Jan 2011
Fact Finding 14 Apr 2004 to 29 Apr 2004
MRM 26 May 2005
Approval 03 Nov 2005
Last Review Mission -
PDS Creation Date 27 Nov 2006
Last PDS Update 16 Apr 2010

Loan 2193-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Nov 2005 09 Dec 2005 29 Dec 2005 30 Jun 2009 31 Dec 2010 14 Jan 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 42.90 Cumulative Contract Awards
ADB 30.00 03 Nov 2005 4.50 0.00 100%
Counterpart 12.90 Cumulative Disbursements
Cofinancing 0.00 03 Nov 2005 4.50 0.00 100%

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

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