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

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.

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

The trainings that supported the government and public auditors’ capacity to monitor deliverables were completed in the previous periods. In this reporting period, the training outputs were packaged for presentation at the South-South Knowledge Exchange workshop, which took place in May 2017. As of early 2017, over 350 National Government Internal Auditor staff have been trained in 22 Representative Offices in Indonesia. GPOBA’s work with the Local Government and Decentralization Project (LGDP) has produced positive results that will be replicated in other countries.