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World Bank approves $500m for RI
The World Bank has approved US$500 million in additional financing for Indonesiaâs Local Government and Decentralization Project, which aims to improve accountability in local government regarding the implementation of infrastructure projects
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he World Bank has approved US$500 million in additional financing for Indonesia's Local Government and Decentralization Project, which aims to improve accountability in local government regarding the implementation of infrastructure projects.
'Government accountability has a direct impact on the quality of services that communities receive. The more accountable [they are], the better the services. This project aims to increase the efficiency and effectiveness of local government spending on vital infrastructure projects such as roads, irrigation networks, clean water services and sanitation,' World Bank country director for Indonesia, Rodrigo A. Chaves, said.
When Indonesia initiated decentralization a decade ago, responsibility for delivering services shifted from Jakarta to local governments. Some districts and cities have flourished, but others have suffered a decline in the quality of services.
The additional funding is the second-phase of a planned program expansion that was spurred by the government's request to expand the program's reach to include 30 of Indonesia's 34 provinces. It was begun in 2010. The four exceptions are provinces that have special autonomy status: Aceh, Papua, West Papua, and Indonesia's capital, Jakarta.
'The key to the project is linking together performance-based incentives, strong monitoring and targeted capacity-building to leverage improvements in the delivery of services at the local level. Making decentralization work in a complex country such as Indonesia needs this type of 'nuts and bolts' support to improve the quality of public spending,' said Taimur Samad, a World Bank senior urban specialist.
