USAID ERAT: Strengthening Local Government Effectiveness

Two decades after decentralization, Indonesia continues to strengthen local governance, responsiveness, and accountability. The United States supports the Government of Indonesia to improve policy implementation and service delivery for the benefit of all citizens.

Decentralization has improved service delivery across Indonesia, as seen in part by increased levels of high school enrollment and access to water and sanitation. Some health and education outcomes, however, remain low. Local governments' varying levels of ability are a challenge for Indonesia to improve these outcomes consistently and fairly. Investing in local governance leads to improved welfare of the people, for example, through better access to clean water that is related to health quality.

USAID Tata Kelola Pemerintahan yang Efektif, Efisien dan Kuat (USAID ERAT)

Enhancing government regulatory and policy coherence, planning, budgeting, and resource allocation are critical to improving the effectiveness and efficiency of government-provided services, USAID ERAT supports national, provincial, and local governments to strengthen coherence of policies, policy implementation, and budget planning and execution. The project also works to increase accountability and enable incentives so that the services are delivered in a transparent and effective manner.

Together with government partners, USAID ERAT has designed solutions to address these weaknesses, ensuring their buy-in and ownership. This process helps the government harmonize national, provincial, and district policies so that they can be implemented as intended-resulting in more efficient government operations and better services that improve the health, productivity, and prosperity of local communities. The program helps local governments match resources with their goals, needs, and priorities. By improving budget allocation and government operations, citizens benefit. USAID ERAT also promotes collaboration among different levels of government as well as with civil society and the private sector through partnerships-including through the development of social entrepreneurs-to improve public service delivery.

USAID ERAT is active in 30 districts across the North Sumatra, Banten, East Java, West Kalimantan, South Sulawesi, and East Nusa Tenggara provinces.

Results

Completed national and provincial local governance and public service assessments to inform activity plans and enhance understanding of the political, social and economic situation; and
Secured government, civil society, private sector endorsement for USAID ERAT's activities for the next four years by engaging with more than 500 stakeholders in co-design workshops.

Anticipated Results

Ministries have stronger communication, coordination, and collaboration to improve local government performance evaluation and measure innovation better;
Local governments better understand their challenges and solutions to address them based on more reliable data and research on service delivery and governance;
Citizens can convey their needs that will be considered throughout planning, provision of services, and evaluation processes;
Social entrepreneurs are supported and able to operate to support the government on issues such as water, sanitation, and waste management, education, and extreme poverty;
Local governments have improved capacity to address gender equality and social inclusion in policy making, service provision, and resourcing decisions;
Local governments learn and adapt innovations and best practices for better public service, accountable government, and engaged decision-making.