ADB lends $30m to Indonesia

ADB lends $30m to Indonesia

MANILA: The Asian Development Bank (ADB) said on Monday it would extend US$330 million in loans to Indonesia to improve the decentralization process in that country.

This in turn will help improve the delivery of basic services at the local government level, the ADB said in a statement from its headquarters in Manila.

A loan of $300 million will go to "strengthen and rationalize the policy, legal, and regulatory framework for decentralization, and establish a more effective mechanism for intergovernmental coordination," the ADB said.

This will include the formulation and implementation of "a national action plan for fiscal decentralization," the multilateral institution said.

Another $30 million loan will go to upgrading financial management information systems, the ADB added.

Aside from the loan, the ADB will extend a technical assistance grant of $500,000 to improve the technical capacity of the intergovernmental Regional Autonomy Advisory Council which is responsible for overseeing decentralization reforms. -- AFP