Local Government Finance and Governance Reform (Project Loan)

Sovereign (Public) Project | 36541-023

The Asian Development Bank is working with Indonesia to help local governments deliver basic public services more effectively and efficiently. The program is working to align government services and public preferences through greater local autonomy.

Project Details

  • Project Officer
    Hattari, Rabin I.
    Southeast Asia Department
    Request for information
  • Country
  • Modality
    • Loan
  • Sector
    • Public sector management
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)
concessional ordinary capital resources lending / 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 No gender elements
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 Hattari, Rabin I.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Home Affairs
Drs. Susilo
Regional Financial Management, BAKD, Ministry of Home Affairs
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

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 4.45 0.00 99%
Counterpart 12.90 Cumulative Disbursements
Cofinancing 0.00 03 Nov 2005 4.50 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

Related Publications

Title Document Type Document Date
Reforming the Social Security System in Indonesia Papers and Briefs Apr 2011

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.