The Indonesia Infrastructure Initiative (IndII) is an Australian Government-supported initiative managed by SMEC International. Its primary goal is to promote economic growth by working with the Government of Indonesia to enhance infrastructure policy, planning, delivery and investment. IndII focuses primarily on water and sanitation issues and on transport (with particular attention to roads and urban mobility), as well as a number of cross-sectoral policy issues. IndII’s activities are designed to build capacity at both national and sub-national levels, with extensive training and mentoring of both the public and private sector built into the program. IndII coordinates its efforts with other donors participating in major infrastructure projects, and promotes partnerships between government and the private sector. Its current programs include the Water Hibah and Sanitation Hibah, which offer incentive grants to Local Governments that invest in water and sanitation infrastructure and which are bringing benefits to about 1.2 million people. In transport, IndII is also using output-based grant mechanisms to improve routine maintenance of provincial roads, as well as improving the effectiveness of national roads planning, programming and delivery through the introduction of new tools, processes and contract structures.