Indonesia: Second Local Government Finance and Governance Reform Program (LGFGR 2)

Sovereign Project | 38264-012 Status: Closed

Summary

The anticipated impact of the longer term program is provision of improved transparency, efficiency, equity and effectiveness in managing and using public resources available for regional level development through better intergovernmental financing arrangements, including fiscal transfers and local taxation powers. The expected outcome of the TA will be the policy changes adopted by the Government in the field of studies leading to timely processing of LGFGR 2.

Latest Project Documents

Title Date
Preparing the Second Local Government Finance and Governance Reform Program (Financed by the Japan Special Fund) Feb 2009
Preparing the Second Local Government Finance and Governance Reform Program (Financed by the Japan Special Fund) Dec 2007

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Project Name Second Local Government Finance and Governance Reform Program (LGFGR 2)
Project Number 38264-012
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7010-INO: Second Local Government Finance and Governance Reform Program (LGFGR 2)
Japan Special Fund US$ 700,000.00
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 The anticipated impact of the longer term program is provision of improved transparency, efficiency, equity and effectiveness in managing and using public resources available for regional level development through better intergovernmental financing arrangements, including fiscal transfers and local taxation powers. The expected outcome of the TA will be the policy changes adopted by the Government in the field of studies leading to timely processing of LGFGR 2.
Project Rationale and Linkage to Country/Regional Strategy
Impact The TA will strive to enhance management and coordination in the implementation of fiscal decentralization, improve the intergovernmental fiscal system, develop better incentive systems for service delivery, and reduce regional governments' dependency on fiscal transfers.

Project Outcome

Description of Outcome The expected outcome is improved delilvery of services for the general welfare of the communities and enhanced accountability of regional governments.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

(i) National Action Plan for Fiscal Decentralization (NAPFD) 2010-2014.

(ii) Fiscal Decentralization Modeling and Database in MOF.

(iii) Forward Estimates for Major Transfers and Implementation.

(iv) DAK Design and Monitoring.

(v) Pilot-Testign of Incentive- and Sanction-Linked Transfers.

(vi) Devolution of Property Tax to the Regions.

(vii) Planning for Decentralized Capacity Building.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

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

The consultants will be engaged by ADB on an individual basis to implement TA activities in accordance with ADB's Guidelines on the Use of Consultants.

INTERNATIONAL Consultants (14 person-months)

(i) Fiscal Decentralization Adviser / Team Leader (8 person-months)

(ii) Expert on Optimal Sizes for Local Governments (2 person-months)

(iii) Expert on Property Tax (2 person-months)

(iv) unallocated (2 person-months).

NATIONAL Consultants (33 person-months)

(i) Fiscal Decentralization Policy Expert and Project Administrator (7 person-months)

(ii) Expert on Optimal Sizes for Local Governments (5 person-months)

(iii) Two Experts on Expenditure Assignments (3.75 months each - a total of 7.5 person-months)

(iv) Expert on Property Tax (5 person-months)

(v) Expert on Deconcentration Funding (4 person-months)

(vi) Three Peer Reviewers/TA External Advisory Panel (1.5 months each - a total of 4.5 person-months).

Responsible Staff

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 Finance
Prof. Dr. Heru Subiyantoro
Ministry of Finance, Directorate General of Fiscal Balance, Building D, 18th floor, Jalan Dr. Wahidin, Jakarta, Indonesia

Timetable

Concept Clearance 26 Apr 2007
Fact Finding 29 Aug 2007 to 04 Sep 2007
MRM -
Approval 03 Dec 2007
Last Review Mission -
PDS Creation Date 23 Jul 2008
Last PDS Update 27 Jul 2010

TA 7010-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2007 19 Feb 2008 19 Feb 2008 31 Jan 2009 30 Jun 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 300,000.00 0.00 0.00 0.00 1,000,000.00 03 Dec 2007 646,852.41
Title Document Type Document Date
Preparing the Second Local Government Finance and Governance Reform Program (Financed by the Japan Special Fund) Consultants' Reports Feb 2009
Preparing the Second Local Government Finance and Governance Reform Program (Financed by the Japan Special Fund) Technical Assistance Reports Dec 2007

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

None currently available.

Related Publications

None currently available.

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