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MEMORANDUM OF l NDERSTANDli'iG
BETWEEN
GOVERNMENT OF THE REP UBLIC OF INDONESIA
AND THE
THE GOVERNMENT OF AUSTRALIA
RF:LATING TO THF: FINANCIAL AND DEVELOPMENT SUPERVISORY BOARD
TECHNICAL ASSISTANCE PROJECT IN INDONESIA

I.

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GENERAL

TlllS MEMORANDUM expresses the understanding of the Clovcrnmcnt of Austra lia
((i0/\) and the Go\crnmcnt of the Republic of Indonesia (CIO I) concerning the
respnnsibilitic:; and contributions. respecti,·el). of the two Go\'ernrncnts in regarJ to the
I inancial and De\ clopment Supervisor: Board Technical Assistance Project (hercallcr
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to as the Project) located in Ja1'.arta. Indonesia.


1'11l: Proj1.::cl is intended to provide technical assistance lo -;uppo rl thl: Financial and
T)\' · hlpmenl Supervisor) Board (BPKP) or Indonesia in their design. impkn1entation and
111dnagement of an institutional strengthening Project Master Plan 0\ er a period of two years
a further described a11d detail ed in Annex 1 to this Memorandum.

2.

EX£Cl1TING AGE'.'\CIES

1he l:xecuting \gcnc1es for this Project ''ill he:
For the GOl

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: Thl' Financial and Development Supervisory Board (BPKP)

For the GOA : The Australian Agency for International Development (A usAlD) of the
0engawusun Keuangan dan Pembangunan or 8PKP) for the development and
implementation of an institutional strengthening Project Master Plan (PM P).


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The aim of the PMP is to enhance sound public financial management through the
strengthening of lndonesia·s Anti-Corruption prO\isions and strategics. strengthening BPKP
performance auditing techniques. enhancing public sector accountabi Iity systems. and
capacil) building of BPKP and Inspectorate Generals in the various Ministries. Under the
\1ast1.:r Plan. a comprehensive anti-corruption strateg) utiliLing competition to the maximum
e:-.tent possible in both public and private sector operations \\ill also be formulated. and a
re' ie\\ or the Anti-Corruption Act No.3 of 1971 to study institutional and regulator)
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on accountability and good governance \\ill be undertaken. A Project
Management Unit (PMU) has been set up within BPKP for the day to day coordination and
implementation of the PMP.

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3.
In June 1998 the Australian Agency for Intcrnational Development (AusAID)
conc.lucted a programming mission for its development cooperation program. focusing
particularly on capacity building in economic and financial management. During this mission
/\us/\! D agreed to provide technical assistance (TA) to support BPKP's PMU in their design

and implementation of the PMP. This TA \viii be in the form of 30 person months or
/\u-;tral ian input and 24 person months of local input over a period of two years. AusAJ D
''ill run