Indonesia: State Accountability Revitalization Project

Project Name

State Accountability Revitalization Project

Project Number

38354-013

Country

Indonesia

Project Status

Approved

Project Type / Modality of

Assistance

Loan

Source of Funding / Amount

Loan 2927-INO: State Accountability Revitalization Project

Ordinary capital resources

US$ 57.75 million

Strategic Agendas

Inclusive economic growth

Drivers of Change

Governance and capacity development

Sector / Subsector

Public sector management - Public administration

Gender Equity and

Mainstreaming

Some gender elements

Description

The State Accountability Revitalization (STAR) project aims to support the government's key reform
priorities aimed at improving the government's accountability through stronger capacity of the internal
auditors and public nance ocers at the central and regional levels. The project focuses on providing
incentives to auditors and nance ocers to improve their capacity, improving the trainers' capacity,
implement the e-learning system, and implement the State Accountability Management Information
System (SIMDA). These will promote good governance in public nancial management and improve
public service delivery for the benet of Indonesian citizens.

Project Rationale and

Linkage to
Country/Regional Strategy

STAR is in line with the government's plan to promote good governance at national and local levels. The
government's National Medium-Term Development Plan (RPJMN) 2010-2014 identies good governance
as one of the priorities. This priority intersects with ADB's country partnership strategy (CPS) for
Indonesia for 2012-2014. The CPS identies improved governance as essential for more inclusive
growth especially in the context of public nancial management as a whole and decentralization
specically. STAR is in line with the ADB's existing support for local government's system and capacity
building in public nancial management under ADB's Second Local Government Finance and
Governance Reform (LGFGR) Program cluster. STAR targets capacity development for decentralized
public management to improve governance, including strengthening; (i) nancial management systems
of local governments; and (ii) national and local audit systems, and capacity for planning, policy making
and nancial management. This target supports BPKP's 2010-2014 strategic plans to strengthen PFM
ocers' capacity to become professional and competent. They aim to have 2,500 internal auditors at
the central and regional government levels.

Impact

Strengthened accountability of public institutions able to deliver high quality public services.

Project Outcome
Description of Outcome

Improved capacity of the government internal auditors and public nance ocers in budget
planning, reporting, internal audit, and asset management.

Progress Toward Outcome

The EA has successfully prepared guidelines on standard audit procedures to carry out a
program evaluation on poverty reduction as issued by the Head of BPKP Regulation No. 18 Year
2014. The team also piloted the program evaluation on poverty reduction which provided inputs
to the President and relevant ministries entailing institutional challenges, coordination issue,
program implementation and strategic recommendations.

Implementation Progress
Description of Project Outputs

1. Capacity development of government internal auditors and public nance ocers

2. Development of e learning system and modules
3. Institutional strengthening through system improvement.

Status of Implementation Progress

(Outputs, Activities, and Issues)

By Q2 2015: 34 students graduated out of 2,433 students enrolling

8,200 sta have been trained or certied (out of 9,800 target)
Total Trainers trained is 245
as of Q2 2015, total women participated in the Project is 40%
On going.
On going.
Launched in July 2014 with three courses and 62 modules. Currently, additional modules are
being developed.
One program based policy, i.e. poverty reduction, was piloted for cross sector evaluation.

Geographical Location

Safeguard Categories
Environment

Involuntary Resettlement

Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects

The Project focuses on capacity building of the Government's internal auditors and nance ocers.
The Project is not expected to cause direct or indirect adverse environtmental impacts. The project
does not involve any infrastructure development nor does it include policy reform that lead to
reduction to environment protection in the country. Thus, it is concluded that the Project is unlikely
to have any signicant adverse to environmental impacts.

Involuntary Resettlement

The Proposed Project focuses on capacity building of the Government's internal auditors and nance
ocers. It will not require any land acquisition and resettlement. The project has been classied
under category C for involuntary resettlement.
RSES Comment:
Agreed. No IR impact.

Indigenous Peoples

The Proposed Project focuses on capacity building of the Government's internal auditors and nance
ocers. It is not expected to have impact on Indigenous People.
RSES Comment:
Agreed. No IP impact

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Responsible Sta
Responsible ADB Ocer

Renadi Budiman

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Indonesia Resident Mission

Executing Agencies

Badan Pengawasan Keuangan & Pembangunan

Jl. Hayam Wuruk No. 7
Jakarta 10120
Indonesia

Timetable
Concept Clearance

09 Jun 2011

Fact Finding

06 Jan 2012 to 13 Feb 2012

MRM

11 Apr 2012

Approval

31 Oct 2012

Last Review Mission

Last PDS Update

25 Sep 2015

Loan 2927-INO
Milestones

Approval
31 Oct 2012

Signing Date
26 Nov 2012

Closing

Eectivity Date

Original

19 Feb 2013

Revised

30 Jun 2018

Financing Plan

Actual

Loan Utilization

Total (Amount in US$ million)

Date

ADB

Others

Project Cost

60.53

Cumulative Contract Awards

ADB

57.75

31 Oct 2012

30.38

0.00

Counterpart

2.78

Cumulative Disbursements

Conancing

0.00

31 Oct 2012

21.55

Project Page

http://www.adb.org/projects/38354-013/main

Request for Information

http://www.adb.org/forms/request-information-form?subject=38354-013

Date Generated

21 February 2016

0.00

Net Percentage

53%

37%

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