MANILA, PHILIPPINES (25 January 2006) - ADB will help improve the decentralized planning and budgeting process of Indonesia's local governments to reduce poverty, through a US$2.1 million technical assistance (TA) grant.

The TA, co financed by the United Kingdom, will help local governments develop local poverty reduction strategies that are linked to the budget process. The TA will design a capacity development program to assist at least 12 district governments in two provinces to produce local strategies that address resource planning and allocation for poverty reduction and achievement of the Millennium Development Goals.

The TA will also contribute to institutional development for poverty reduction at the central level, and will support ongoing development of a nationwide conditional cash transfer (CCT) program that will provide income support to the poor while building human capital.

The total cost of the TA is estimated at $2.625 million, of which the Government of the United Kingdom will provide $300,000 in co financing. The Government will shoulder the balance of $525,000 equivalent.

Indonesia's National Development Planning Agency (BAPPENAS) is the executing agency for the TA, which will be carried out over about 18 months beginning May 2006 under the Deputy Minister for Poverty Reduction, Labor, and SMEs.

For complete information, please refer to

http://www.adb.org/Media/Articles/2006/9199_Indonesia_poverty_reduction/default.asp