ADB pledges grant to support RI decentralization program<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
The Asian Development Bank (ADB) has pledged a US$700,000 grant
\nto strengthen the audit function against rampant corruption in
\nIndonesia, apart from a $1 billion loan for a six-year term to
\nsupport the country's decentralization programs.<\/p>\n
The financial management specialist of the ADB's Indonesian
\nmission, Farzana Ahmed, said on Tuesday that there was a need to
\nsupport the country's audit function at the regional level to
\nensure good governance, accountability and transparency.<\/p>\n
"The assistance is of great importance, as auditors have poor
\nunderstanding and application of internationally recognized audit
\npractices and standards," she told a press conference here.<\/p>\n
She said there were overlaps and confusion about the roles and
\nresponsibility of audit institutions such as the Supreme Audit
\nAgency (BPK), the Development Finance Comptroller (BPKP),
\nInspectorate Generals and government supervisory bodies at the
\nprovincial and regional levels (Bawasda).<\/p>\n
Asked if the grant was part of the ADB's effort to stamp out
\ncorruption in the country, which had reached a worrying level,
\nprincipal programs coordination specialist of the ADB's
\nIndonesian mission Shiladitya Chatterjee said, "Yes, we are
\nnaturally worried about the overall governance situation in the
\ncountry, and governance is one of the most important areas of
\nreform ... and that is what we are trying to improve."<\/p>\n
Audit was the principal instrument the government had to
\nprevent corruption, Chatterjee said.<\/p>\n
The technical assistant program, which will be undertaken by
\nthe National Development Planning Board (Bappenas), will wrap up
\nin February 2004.<\/p>\n
Chatterjee also explained that the decentralization aid was
\npart of the ADB's full commitment to supporting the
\ndecentralization programs started by the government in 2001.<\/p>\n
"The aid would be concentrated on supporting the fiscal
\ncapacity of the regions that have a high level of poverty and low
\nnatural resources, because ever since the decentralization
\nprograms began, the central government has been spending less for
\nthem," he said.<\/p>\n
The ADB was also concerned about the lowering of development
\nsubsidies for villages, which it considered to have impacts on
\nthe country's poor. A lack of investment in infrastructure at the
\nregional level also hampered regions in thriving.<\/p>\n
The loan is allocated toward a variety of ongoing projects in
\nhealth, education, environment and urban development. It is also
\naimed to improve the flow of resources to poorer regions.<\/p>\n
Chatterjee said that regions targeted for the loan were
\nprovinces endowed with limited natural and human resources such
\nas North Sumatra, South Sumatra, Lampung, East Java, Central
\nKalimantan, Central Sulawesi, Southeast Sulawesi and East Nusa
\nTenggara.<\/p>\n
"But we aren't entirely abandoning resource-rich regions. For
\nrich provinces like Aceh, Riau, West Sumatra and East Kalimantan,
\nwe are committed to boosting the involvement of the private
\nsector in the next three years," he said.<\/p>\n
He added that the aid was to be channeled through the central
\ngovernment with which the ADB has an established relationship.<\/p>\n
Since the outset of the decentralization programs, the ADB has
\napproved $438 million in loans devoted to regional autonomy-
\nrelated projects.<\/p>\n
Every fiscal year, the ADB allocates aid ranging from $600
\nmillion to $1.2 billion to Indonesia.<\/p>\n
Established in 1966, the ADB is a multilateral development
\nfinance institution aimed at reducing poverty in Asia and the
\nPacific<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/adb-pledges-grant-to-support-ri-decentralization-program-1447893297",
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