Indonesia: Support for Local Government Finance and Governance Reform 2

Sovereign Project | 38264-032

Summary

The TA provides support to important agreed actions under the policy matrix for the LGFGR 2 (Sub Program 2) program. Strengthening of decentralization policy and enhancing the performance of Regional Governments to deliver services are core elements of the Government?s 5 year Development Plan and also represent one of the key pillars of the ADB Country Strategy and Program 2006-2009 and Country Operations Business Plan 2009-2011. The proposed assistance falls under the umbrella of the long standing LGFGR program and is very closely linked to supporting achievement of important actions in the policy matrix for the proposed subprogram 2 scheduled in 2011. The PATA follows on from several earlier TAs under the LGFGR series of programs with additional support warranted by the breadth and depth of the decentralization reform program being pursued.

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Project Name Support for Local Government Finance and Governance Reform 2
Project Number 38264-032
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7452-INO: Support for Local Government Finance and Governance Reform 2
Japan Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Public sector management - Public expenditure and fiscal management
Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy The TA provides support to important agreed actions under the policy matrix for the LGFGR 2 (Sub Program 2) program. Strengthening of decentralization policy and enhancing the performance of Regional Governments to deliver services are core elements of the Government?s 5 year Development Plan and also represent one of the key pillars of the ADB Country Strategy and Program 2006-2009 and Country Operations Business Plan 2009-2011. The proposed assistance falls under the umbrella of the long standing LGFGR program and is very closely linked to supporting achievement of important actions in the policy matrix for the proposed subprogram 2 scheduled in 2011. The PATA follows on from several earlier TAs under the LGFGR series of programs with additional support warranted by the breadth and depth of the decentralization reform program being pursued. It carries forward the work on fiscal decentralization policies, alignment of sector and decentralization laws, performance measurement and transmission of financial information from regional governments. Approval of this TA was foreshadowed in the RRP which approved the LGFGR 2 program in December 2008. The RRP envisaged a piggy back TA to support the reform agenda of the Government in regional government financing and governance and a follow on PATA in 2009 to carry forward the on going work in the same areas.
Impact More efficient, effective, and equitable spending by regional governments
Project Outcome
Description of Outcome Strengthened capacity to attain all agreed actions under the policy matrix and to adopt new policies
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Flexible and effective technical support to allow all policy matrix actions to be achieved.

Organizational strengthening of DPOD

Harmonization of sector and decentralization laws and budgets

Progression of the regional government performance management system

Improved processing and analysis of regional government financial information

Status of Implementation Progress (Outputs, Activities, and Issues)

The consultants commence services in December 2010. Inception report was submitted in April 2011.

The TA's Inception report discussed the re-orientation of activities to higher priority tasks, including: i) the design and preparation of an Annual Report on Regional and Local Budgets; ii) the identification of incorrect deconcentrated expenditure (Dekon) in the Ministry of Public Works; and iii) the provision of advisory assistance on the review of the intergovernmental system of transfers, among others. These additional activities are fully in line with the TA's scope, objectives and expected impact and outcomes.

Geographical Location Indonesia
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 Consultants will be engaed through a mix of firm and individuals. The team leader and all national consultant will be recruited through a firm. Twho short-term international consultants will be recruited by ADB as individuals for 4 person-months each. Consultant will be selected using a quality- and cost-based selection method (80:20) with full technical proposls.
Responsible ADB Officer Juan Gomez Reino
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of FinanceProf. Heru SubiyantoroB Building, Jalan Dr. Wahidin Nomor 1, Jakarta 10710
Timetable
Concept Clearance 03 Sep 2009
Fact Finding 09 Aug 2009 to 14 Aug 2009
MRM -
Approval 10 Dec 2009
Last Review Mission -
PDS Creation Date 14 Jan 2010
Last PDS Update 25 May 2011

TA 7452-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2009 04 Mar 2010 04 Mar 2010 31 Oct 2011 31 Oct 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 300,000.00 0.00 0.00 0.00 1,300,000.00 10 Dec 2009 662,647.98
Title Document Type Document Date
Support for Local Government Finance and Governance Reform 2 Technical Assistance Reports Dec 2009

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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