Technical Assistance | Activity Status: Active

Indonesia - Support Independent Verification Agent (IVA) Rollout in the Local Government and Decentralization Project

Overview

In 2010 the World Bank approved a US$220 million loan for a Local Government and Decentralization project in Indonesia.  The project aims to improve the accountability and reporting of the central government’s Specific Purpose Grants (DAK). Piloted in four infrastructures sub-sectors—irrigation, roads, sanitation, and water— the project is the World Bank’s first to apply innovative OBA design principles on a large scale to target improvements in inter-governmental fiscal transfers. Under the project, the DAK grants will work in a similar way to OBA subsidies, which reimburse service providers for independently verified, pre-agreed physical outputs. GPOBA’s work with the Local Government and Decentralization Project (LGDP) has produced positive results that will be replicated in other countries. As of early 2017, over 350 National Government Internal Auditor staff have been trained in 22 Representative Offices in Indonesia.

See special section on GPOBA's participation at 2017 Water Week for highlights on this project.