MANILA : Indonesia is to get three technical assistance grants

MANILA : Indonesia is to get three technical assistance grants totaling US$2.06 million from the Asian Development Bank (ADB) to support moves to devolve power to local governments, the bank said Thursday.

Indonesia's 31 provincial governments were given additional powers under a major decentralization exercise launched in the southeast Asian archipelago last year.

The Manila-based ADB said the local governments were not yet able to fully assume their complex new responsibilities.

Such lack of capacity "could hinder adequate provision of local services, thereby impacting on poverty reduction efforts," it said.

The assistance will help local governments in the areas of capacity-building, local government finance and good governance, an ADB statement said.

Jakarta retains control of foreign policy, defense, security, judiciary, monetary and fiscal matters and religious affairs.--AFP