Publication: Strengthening Fiscal Transfers in Indonesia Using an Output-Based Approach
Date
2011-01
ISSN
Published
2011-01
Author(s)
Abstract
In 2010 the World Bank approved a US$220
million loan for a Local Government and Decentralization
project in Indonesia. The project aims to improve the
accountability and reporting of the central
government's Specific Purpose Grants (DAK). Piloted in
four infrastructure sub-sectors-irrigation, roads,
sanitation, and water the project is the World Bank's
first to apply innovative Output-Based Aid (OBA) design
principles on a large scale to target improvements in
inter-governmental fiscal transfers. Under the project, the
DAK grants will work in a similar way to OBA subsidies,
which reimburse service providers for independently
verified, pre-agreed physical outputs. Up to 81 local
governments in five provinces are eligible to take part in
this project. This note presents an overview of the project
objectives and design.
Citation
“Ellis, Peter; Mandri-Perrott, Cledan; Tineo, Luis. 2011. Strengthening Fiscal Transfers in Indonesia Using an Output-Based Approach. OBApproaches; Note No. 40. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/ec7558a2-e0b3-5eb4-acf0-71fa67128f04 License: CC BY 3.0 IGO.”