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 Name | Second Local Government Finance and Governance Reform Program (LGFGR 2) | ||||
| Project Number | 38264-012 | ||||
| Country | Indonesia |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
|
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development |
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| Sector / Subsector | Public sector management / Public expenditure and fiscal management |
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| 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 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 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 |
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 Access to Information Policy (AIP) 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.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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| 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.
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Evaluation Documents See also: Independent Evaluation
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Related Publications
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