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Improving the Accountability of Infrastructure Spending by Local Governments

May 2, 2016

Indonesia is comprised of over 500 autonomous local governments that are highly dependent on fiscal transfers from the central government through the Specific Purpose Grants. These grants are explicitly designed to fund infrastructure investments, and account for around 20% of Indonesia’s public spending on infrastructure but there are no systematic framework to monitor its effectiveness. The Local Government and Decentralization Project aims to help ensure that the grants are used more effectively.