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 Name||Local Government Finance and Governance Reform (Project Loan)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|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|
|Description of Outcome||Increased accountability in management of local government finances|
|Progress Toward Outcome|
|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)|
Summary of Environmental and Social Aspects
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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|
Ministry of Home Affairs
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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|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.
|Title||Document Type||Document Date|
|Local Government Finance and Governance Reform Sector Development Program||Project/Program Completion Reports||Oct 2012|
|Loan Agreement for Local Government Finance and Governance Reform Sector Development Project between Republic of Indonesia and Asian Development Bank dated 9 December 2005||Loan Agreement (Special Operations)||Dec 2005|
|Local Government Finance and Governance Reform Sector Development Program||Reports and Recommendations of the President||Oct 2005|
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
|Title||Document Type||Document Date|
|Indonesia: Local Government Finance and Governance Reform Sector Development Program||Validations of Project Completion Reports||Dec 2013|
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.