The project loan implements reforms in public expenditure and financial management (PEFM) under phase 1 through development and upgrading of related FMIS. The project consists of five components: (i) upgrade and expand electronic access tothe regional financial information system (SIKD) by 100 local governments; (ii) computerize the new Directorate General of Regional Financial Management (DG BAKD), at the Ministry of Home Affairs to enhance oversight of PEFM reforms; (iii) develop and implement regional financial management information system (SIPKD) in 71 local governments; (iv) streamline and computerize the system at the Ministry of Finance (MOF) for review of local government regulations (perdas) and draft perdas on taxes and charges for consistency with higher laws and regulations; and (v) develop certification program at MOF for regional financial administrators.