U.S. pours in more local autonomy aid

JAKARTA: The United States and Indonesian government signed on Wednesday an agreement that will provide an additional US$12.65 million for Indonesia to build a strong, decentralized system of governance.

The U.S. Embassy press statement released on Wednesday said the assistance, which is part of $55 million multiyear bilateral agreement, would be used to fund projects that improved local government management and service delivery.

"We are committed to helping Indonesia demonstrate that democratic governance is effective and can produce the services and opportunities people need to improve their lives and the lives of their children," U.S. Agency for International Development (USAID) Indonesia director William Frej said after the signing of the agreement with Director General for Central and Regional Fiscal Balance Machfud Sidik.

Over the last five years, USAID has worked with the Ministry of Finance to improve local government capacity in participatory planning, performance-based budgeting and the management of services and resources. -- JP