Foreign aid to Indonesia takes the form of loans or grants. The loans can be made either to the government or to state-owned enterprises with a guarantee from the government. This report documents Indonesia's financial management systems covering budgeting, funds flow monitoring and analysis, accounting and reporting, and auditing. It also provides insights into the quality of internal control systems, staff capacity, and information technology structure. The intent is to provide project teams and consultants with a better understanding of financial management systems during project preparation. Find out how high-quality financial management assessments support project implementation through the identification of key risks and enabling the implementation of mitigating actions and reforms.

Considering the size and importance of Indonesia, remarkably little has been published in the West about the society and government of that country. With over 160 million people, it is the fifth most populous country in the world. It is an archipelago of some 13,000 islands, stretching over 5,000 kilometers from from east to west, and contains within it an amazing array of cultures, as well as ethnic, economic, and religious variations. Not surprisingly in view of the country's great size, vast regional differences, and cultural diversity, local government in Indonesia is on a massive scale. The task of managing and financing a system of local government is a troublesome one; the development needs of different regions are vast and the tasks facing local government are generally far beyond their limited resources. It is the purpose of this book not only to describe the existing system of local government but also to analyze it, identify weaknesses and problems with the present arrangement, and to propose realistic lines of reform. This collection of essays will provide a useful and constructive contribution to the discussion of issues central to the system of local government in Indonesia.

This book results from a collaborative research project on the costs and financing of education in Indonesia. It focuses on all levels of education, and presents important data not only on public expenditures but also on household, community and other non-government expenditures. The analysis of private costs and financing includes focus on Islamic madrasahs and other religious institutions. The book is a seminal work which will be of value in the international framework as well as in the Indonesian one.