The other lesson learned was that this sort of vital reform measure, i.e., reorganizing the BPKP, should not have been pushed back as a condition for release of the second tranche. This appears to be a flaw in the program design. ADB should have insisted on reforming the BPKP step by step, making the government's agreement to reorganize the BPKP a condition for submitting the program for Board approval. Then government agreement to come up with a firm plan to reorganize the BPKP should have been made a condition for the release of the first tranche. Finally, the government's beginning to implement the reorganization plan for the BPKP should have been a condition for the release of the second tranche. Board approval and release of the first tranche should have been used to lever positive movement towards reorganizing the BPKP. Leaving that to the final stage of releasing the second tranche appeared to be quite late in the reform implementation program, causing the cancellation of that tranche and allowing the BPKP to maintain more or less its pre-program status.
State Audit Reform Sector Development Program