dsf quarterly report september 2009
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DSF Quarterly Report September 2009TRANSCRIPT
September 2009
DSF Quarterly Report
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Table of Contents
Table of Contents
Introduction ..................................................................................................................................... 1
Governance and Development Context .......................................................................................... 1
Parliamentary elections. .............................................................................................................. 1
Economic development. .............................................................................................................. 1
Work Programming and Reporting ................................................................................................. 2
Activity concept notes................................................................................................................. 2
Development of additional activities. ......................................................................................... 4
Log-frame. .................................................................................................................................. 4
Geographical Distribution of DSF Activities ................................................................................. 4
DSF Engagement with Local Government ..................................................................................... 6
Existing and Forthcoming Activities .............................................................................................. 6
DSF Executive ................................................................................................................................ 7
Engagement with government. ................................................................................................... 7
Engagement with donors............................................................................................................. 7
Staffing – professional staff appointments. ................................................................................ 8
Staffing – professional staff recruitment..................................................................................... 8
Staffing – support staff................................................................................................................ 8
SOFEI disengagement. ............................................................................................................... 8
Risks ................................................................................................................................................ 8
Annex A: Activity Progress against DSF Log-Frame .................................................................... 9
Annex B: Financial Report ........................................................................................................... 27
Annex C: List of Acronyms .......................................................................................................... 34
DSF Quarterly Report
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September 2009
Decentralization Support Facility
Quarterly Report (For the quarter ending 30 September 2009)
Introduction
1. In accordance with the DSF Operations Manual, this report is submitted within 30
days following the end of the third quarter of 2009.
2. Based on the log-frame developed for the DSF Annual Report 2009, the report
discusses the progress of existing DSF-financed activities to 30 September 2009 and
outlines progress made with the design and execution of activities under the approved DSF
Work Plan 2009-2011 (see Annex A and Table 1). It also up-dates the governance and
development context and aspects of the management and functioning of the DSF Executive;
describes the geographical distribution of DSF activities; and notes possible developments
concerning local government engagement.
3. A financial report is set out in Annex B.
Governance and Development Context
4. Important and far-reaching political and economic events have taken place during the
last quarter. Indonesia has conducted open and fair parliamentary and presidential elections;
the global economic outlook has improved; and Indonesia‟s economy and financial
institutions have continued to exhibit remarkable resilience and stability during a period of
global economic turmoil.
5. Parliamentary elections.1 Notable aspects of these elections include:
a. For the first time, an incumbent party has won a post-Suharto election.
b. Parties with neo-authoritarian platforms did not do well.
c. The elected parliament is probably Indonesia‟s youngest and most gender-
balanced ever.
d. The party system has undergone a healthy process of consolidation.
e. While satisfactory, the quality of electoral management is generally regarded
not to have been as strong as in previous post-Suharto elections. Mietzner
(2009) suggests that „the elections were a test case for Indonesia‟s ability to hold
high-quality elections as a routine procedure rather than as a climax of historic
political change‟.
f. Voter turnout was lower (down from 84% to 71%) than in previous post-
Suharto elections, but by most standards still high.
6. Economic development.2 The latest data suggest that Indonesia‟s economic
recovery is robust and has gathered momentum since the beginning of the calendar year
2009. Important indicators include:
1 Source: Mietzner, M. ‘Inside Indonesia: July-September, 2009’. 2 Source: ‘Indonesia Economic Quarterly: Clearing Skies’. World Bank, Jakarta, September 2009.
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September 2009
a. Quarterly growth has accelerated from the beginning of 2009, reaching 4% in
the second quarter. The trend of gradual recovery is projected to continue into
2011.
b. Domestic consumption has remained strong and consumer confidence is at an
all time high, and rising.
c. Investors remain cautious, although building construction is buoyant.
d. The banking sector is healthy – non-performing loans and interest rates are
stable.
e. Financial markets continue to strengthen.
f. The overall balance of payments shows a small surplus.
g. Inflation has fallen at a faster rate than is the case for most of Indonesia‟s
trading partners, but - at 3.8% - the „poverty basket‟ inflation rate is still
relatively high.
h. Employment has grown at a faster rate than the working age population.
However, most new jobs are in the informal sector.
i. In 2009, public finances have been more stimulatory than in recent years. To
July 2009, the government budget was in deficit. Normally, during such periods
there are significant surpluses. Revenues were down; more was spent on core
programmes, but significantly less on energy subsidies. Disbursement of the
government‟s stimulus package began to accelerate in July.
j. In 2010, deficits may be smaller than projected, creating space for greater
government spending.
Work Programming and Reporting
7. Activity concept notes (ACN). Following the approval of the DSF Work Plan 2009-
2011, work has proceeded satisfactorily on more detailed design of approved activities.
This work has also entailed determining modes of execution for each activity and the
preparation of procurement and implementation schedules.
8. To 30 September 2009, ten concept notes had been through a thorough process of
development and review and are now in various stages of preparation for execution and
implementation. A further two concept notes were sent out for review on 30 September,
and it is expected that the final two of the first batch will be sent out by around the middle
of October 2009 or as soon thereafter as possible. A summary of progress is provided in
Table 1 below.
Table 1: ACN Status Report
ACN # Name Closing
Date for
Review
Budget
Estimate
(USD)
Trust Fund
Status
Procurement or
ACN Status
1/2009 Capacity Strengthening
Program for DPRD (Local
Government Legislatures)
June 26 500,000 Grant
Funding
Request
(GFR) made
Eligible
expenditures for
Grant Agreement
(GA) finalized;
procurement and
financial
management
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September 2009
ACN # Name Closing
Date for
Review
Budget
Estimate
(USD)
Trust Fund
Status
Procurement or
ACN Status
assessment of
OTDA/MOHA
completed; Draft
Grant Agreement
(GA) under review
2/2009 Capacity Building for
Regional Development
Policy Formulation
June 26 142,500 Active Procurement
underway
3/2009 Socialization and Pilot
Implementation of Joint
Circular Letter (SEB) on
Monitoring of Technical
Implementation and
Evaluation of Use of Special
Allocation Funds (DAK)
June 26 550,000 GFR made Minor revisions to
the ACN are being
made
4/2009 Management Strengthening
and Institution Building for
Local Public Service
Providers (MSIB-LPSP)
June 26 500,000 GFR made Minor revisions to
the ACN are being
made (budget)
5/2009 Institution Building for the
Integration of National-
Regional Development and
Spatial Planning
July 17 483,400 Active Procurement
underway
6/2009 Building Capacity for the
Development of Sub-
National Government
Capital Markets for
Municipal Bonds
August
18
900,000 GFR made Minor revisions to
the ACN are being
made (budget).
Procurement ToR
are being drafted
7/2009 Government Training and
Education Centre
Development: Introducing
Competency Based
Standards for Improved
Public Service Delivery
August
18
797,0003 GFR made Eligible
expenditures
finalized for GA;
procurement and
financial
management
assessment of
Diklat/MOHA
completed; draft
GA under review
8/2009 Institution Building for the
Accelerated Development of
Border Areas
August
21
500,000 Active Procurement
underway
9/2009 Capacity Building through
Decentralization Education
and Training (DET) for
Public Service
Delivery
October
2
796,760 Pending
decision on
mode of
execution
Mode of execution
under discussion
with MoHA
3 In order to finance fully the competency based training work planned under ACN 7/2009, the Foreign Cooperation
Bureau of MoHA (AKLN) has approved from funds earmarked for governance reform in the DSF Work Plan 2009-2011
an additional allocation for Diklat, up to a ceiling of $800,000. AKLN is in the process of sending this recommendation to
the MC co-chair for documentation purposes. The DSF Executive has reviewed the revised budget, currently at $797,000,
and found that it meets the requirements for eligible expenditures.
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September 2009
ACN # Name Closing
Date for
Review
Budget
Estimate
(USD)
Trust Fund
Status
Procurement or
ACN Status
10/2009 Strengthening Local
Government Natural
Resource Management
Capability
October
14
749,500 Active Procurement about
to commence
11/2009 Formulation of Norms,
Standards, Procedures and
Criteria (NSPK) for Local
Government
Service Delivery
October
14
1,000,000 Pending
decision on
mode of
execution
Mode of execution
under discussion
with MoHA
12/2009 Strengthening Data
Provision to the Regional
Financial Information
System by Sub-National
Governments with Stand-
Alone Electronic Data Bases
October
2
250,000 GFR made Procurement ToR
are being drafted
13/2009 Grand Design of Fiscal
Decentralization
900,000 Pending
completion
of ACN
review
ACN close to
completion
14/2009 Costing and Pilot
Implementation of
Minimum Service Standards
1,200,000 Pending
completion
of ACN
review
ACN under
development
9. Development of additional activities. This work is continuing and will result from
time-to-time in the submission to the Management Committee (MC) of additional activity
proposals that fall within one of the DSF‟s designated four priority areas.
10. An outline of the next batch of activities and brief rationale will be presented to the
MC at its meeting in late October 2009. These activities will then be developed into activity
concept notes and reviewed according to the established pattern.
11. Log-frame. Reporting of DSF-supported activity progress against an expanded log-
frame commenced in the June 2009 Annual Report. This quarterly report and all future
reports will report against that log-frame.
Geographical Distribution of DSF Activities
12. The geographical distribution of DSF activities is set out in Table 2 below. In order
to optimise any benefits for development impact that could accrue from the geographical
concentration of activities, geographical distribution may be employed as one of a number
of criteria in the design of certain DSF activities.
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September 2009
Table 2: Geographical Distribution of DSF Activities
High Density Provinces (provinces with 4 or more DSF activities)
No. High Density
Provinces DSF Activity Identified Kab./Kota
1 Kepulauan Riau (6) MSS Kab. Bintan
Strengthened capacity of DPRD
Border area development planning Kota Batam, Kab. Natuna,
Kab. Bintan, Kab. Kep.
Anambas
NSPK Kota Batam
DET
Local government borrowing
2 West Kalimantan (5) MSS Kab. Sanggau, Kab./Kota
Pontianak
Strengthened capacity of DPRD
Border area development planning Kab. Sambas, Kab.
Bengkayang, Kab. Sanggau,
Kab. Sintang, Kab. Kapas Hulu
DET
NSPK Kota Pontianak
3 East Kalimantan (4) DAK
Diklat competency based training
DET
Border area development planning Kab. Kutai Barat, Kab.
Nunukan, Kab. Malinau
4 Maluku (4) Strengthened capacity of DPRD
Border area development planning Kab. Maluku Barat Daya, Kab.
Maluku Tenggara Barat, Kab.
Kep. Aru,
DET
NSPK Kab. Maluku Tengah
5 East Nusa Tenggara
(4)
Strengthened capacity of DPRD
Border area development planning Kab. Kupang, Kab. Timor
Tengah Utara, Kab. Belu, Kab.
Alor, Kab. Rote Ndao
DET
NSPK Kota Soe
Medium Density Provinces (provinces with 2 DSF activities)
No. Medium Density
Provinces DSF Activity Identified Kab./Kota
1 North Sumatra
(2)
MSS
Border area development planning Kab. Serdang Bedagai
2 Banten (2) MSS Kab./Kota Tanggerang
MSIB-LGSP (AMSD II) Kota Serang, Kab. Lebak, Kota
Cilegon
3 West Java (2) MSIB-LGSP (AMSD II)
Local government borrowing Kota Bandung
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September 2009
No. Medium Density
Provinces DSF Activity Identified Kab./Kota
4 Yogyakarta (2) MSS Kab. Bantul, Kab. Sleman, Kab.
Gunung Kidul, Kab. Kulon Progo,
Kota Yogyakarta
DAK
5 Bali (2) Strengthened capacity of DPRD
NSPK Kabupaten Badung
6 West Nusa
Tenggara (2)
DAK
Diklat competency based standards
7 Papua (2) Border area development planning Kab. Peg. Bintang, Kota Jayapura,
Kab. Supiori, Kab. Keerom, Kab.
Merauke, Kab. Boven Digoel,
Natural resource management
Low Density Provinces (provinces with only 1 DSF activity)
No. Provinces DSF Activity Identified Kab./Kota
1 NAD (1) Border area development planning Kota Sabang
2 West Sumatra (1) DAK
3 South Sumatra (1) Strengthened capacity of DPRD
4 Riau (1) Border area development planning Kota Dumai, Kab. Bengkalis, Kab.
Rokan Hilir, Kab. Indragiri Hilir,
Kab. Kep. Meranti
5 DKI Jakarta (1) Local government borrowing
6 East Java (1) Diklat competency based standards
7 North Sulawesi (1) Border area development planning Kab. Kep. Talaud, Kab. Kep Sangihe
8 South Sulawesi (1) Natural resource management
9 Southeast
Sulawesi (1)
DAK
10 North Maluku (1) Border area development planning Kab. Kep. Morotai
11 West Papua (1) Border area development planning Kab. Raja Ampat
DSF Engagement with Local Government
13. In late October 2009, a paper outlining a number of possibilities for DSF engagement
with local government will be put to the MC for its consideration. Formal authority for
determining the nature of such engagement rests with the DSF Steering Committee (SC). It
is envisaged that the MC will make a recommendation to the SC about this important
matter.
Existing and Forthcoming Activities
14. Annex A provides a summary of progress made to date in relation to existing
activities and activities that are at various stages of development and execution. Activities
are organised according to: (1) Public service delivery; (2) Fiscal decentralisation; (3)
Accountability; (4) Planning and performance measurement; and (5) Development
DSF Quarterly Report
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September 2009
effectiveness in Eastern Indonesia. The latter is retained because the period of DSF
funding4 for SOfEI programme activities was extended to 30 September 2009.
15. A financial report is provided separately as Annex B and a summary of the Facility‟s
cash position and of projected cash flow to 2011 is set out in Table 4 of Annex B.
16. On the basis of exchange rates prevailing at 30 September 2009, the total amount
pledged to DSF stands at USD 44.77 million. With investment income, the total amount
available is USD 46.58 million. Of this amount, a total of USD 43.50 million (97% of total
pledged) is committed. Such commitments comprise: (a) formal allocations to 31 projects;
(b) budgeted expenditure on activities under the approved DSF Work Plan 2009 – 2011;
and budgeted expenditure for DSF operations. At the end of the reporting period,
disbursements totalled USD 14.56 million (32.51% of total pledged or 33.13% of
allocations); and the DSF Trust Fund held a total of is USD 14.61 million in cash, including
USD 8 million that is either in the process of being allocated to child TF or earmarked for
such allocation.
17. An additional GBP 360,000 has been formally pledged by DFID for the beginning of
FY2010.
DSF Executive
18. Engagement with government. There has been extensive face-to-face interaction
with government counterparts concerning the design and execution of activities under the
approved DSF Work Plan 2009-2011. Such interaction has taken the following forms:
a. Occasional meetings - called by government – with government members of the
DSF MC.
b. Occasional breakfast meetings with the Chair of the MC and senior
representatives from the other government agencies represented on the MC.
c. Day-to-day interactions with government counterparts responsible for particular
activities.
d. Day-to-day interactions with the government technical team assigned to support
government‟s management of DSF-related work.
e. A day-long workshop with the government technical team held in Bogor in
September.
19. Engagement with donors. There has been a series of meetings between bilateral
donors concerning the programming of their support to decentralisation. The DSF
Executive has been well-represented at all of these meetings and will host the meeting
scheduled to be held in October 2009. A summary of such proposed support, which has
been informed by the DSF strategic framework, may be presented to the next meeting of
the DSF MC, scheduled for late October 2009.
20. There has also been extensive and fruitful exchange between donor members of the
MC, the DSF Executive, and government arising from the review of activity concept notes.
4 Note that the period extension did not entail additional funding over and above the budget allowed for the approved
six months.
DSF Quarterly Report
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September 2009
21. Staffing – professional staff appointments. An international short term consultant
with extensive experience of decentralisation in Armenia joined the DSF Executive in July
2009 (Anahit Karapetyan).
22. The incumbent Program Manager has accepted a formal World Bank offer of a two
year extended term consultancy to commence immediately upon his „retirement‟ on 28
February 2010. This will allow him to continue in his current role.
23. In consultation with government, the DSF Executive appointed two national short
term consultants (Jimmy Andrei and Rayi Renggani) as members of the DSF/MC
secretariat. They will work closely with the government technical team that supports all
aspects of government involvement in DSF business.
24. Staffing – professional staff recruitment. Progress with recruitment is set out
below:
a. Senior Economist. The second round of recruitment for this position closed on
22 September 2009. It has yielded a stronger long list of candidates than the first
round. Interviewing of short-listed candidates will commence in October 2009.
b. Senior Governance Adviser (international). Following the departure in
January 2010 of the incumbent (Aruna Bagchee), DfID financial support for this
position will continue. From January 2010, the position will become a DSF
Executive position per se; the position will report to the DSF Program Manager;
and will be subject to Bank terms and conditions of employment. Recruitment
for an international replacement, which will begin in October 2009, will be done
on the basis of an extended term consultancy. The aim will be to have someone
in place by the middle of January 2010.
c. Decentralisation adviser (national). In accordance with the DSF Executive‟s
policy to develop national professionals, an extended term consultant will be
recruited to the professional team. Advertising will commence in October, with
a view to commencement in January 2010. The responsibilities for this position
will include the provision of support to government in relation to activities that
are recipient-executed.
25. Staffing – support staff. The policy of the DSF Executive has been to rationalise
support staffing by allowing natural attrition to take its course (positions made vacant by
three resignations have not been filled); and, at the same time, to improve overall
performance through job redesign, training, and productivity gains. This has been
progressing satisfactorily.
26. SOFEI disengagement. The sustainable disengagement of SOFEI from the DSF
continues to proceed satisfactorily and is reported on separately every two months (the last
report was circulated to MC members in the first week of September 2009).
27. During the reporting period, the period of DSF funding of SOfEI programme
activities was extended to 30 September 2009. In accordance with the decision of the DSF
governance structure, DSF funding for SOfEI staff costs will cease on 31 December 2009.
Risks
28. These remain as set out in the DSF Annual Report 2009.
DSF Quarterly Report
September 2009
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Annex A: Activity Progress against DSF Log- Frame*
Objectives Indicators Progress Rate Comment
Insert statements from original
log frame
Insert statements from original
log frame tracking any
modifications
Comment on indicators and milestones outlining key issues faced, and any
reassessment of target/assumptions and risks.
1-5** Indicate actions
proposed or taken to
overcome problems.
Goal
Improved socio-economic
development and reduced
poverty
Indonesia's Human
Development Index (HDI)
Purpose
Equitable, accountable and high
quality public services provided
by national and local
governments
Local governments expenditure
and local governments
performance in basic public
service delivery
Contributions to the development and dissemination of legislation and
procedures governing functional assignments; minimum service standards
(including costing), institution and capacity building of service providers,
and identification and diffusion of good practices.
3
* The log-frame includes new activities and those existing activities which were active in 2008/2009, some of which will continue.
** Objectives likely to be: 1 – fully achieved
2 – largely achieved
3 – partially achieved
4 – achieved to a very limited extent
5 – not achieved at all
X – too early to judge
DSF Quarterly Report
September 2009
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Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
1.1. Improved definition of service
functions and strengthened
capacity of MoHA and
selected relevant ministries
to formulate and monitor
implementation of norms,
standards, procedures, and
criteria (NSPK) for public
service delivery
Ministerial regulations on
selected NSPK issued for
at least 4 sectors
(Agriculture, Trade,
Mining and Land
Administration) by
December 2010
Consultations held with regions in July 2009 for
formulation of 26 norms, standards, procedures
and criteria (NSPK) in Health. This resulted in
confirmation that up to 10 out of 26 NSPKs can
now be further processed to be formalized by the
Minister of Health.
Assessment of 26 NSPK in Health and
preliminary assessment of NSPK in agriculture,
trade, mining and land administration sector
completed, thereby further clarifying the role and
authority of each level of government (refer to
Government Regulation 38/2007) and providing
technical guidance for implementing service
functions. The report is being processed for
delivery to MoHA and MoF.
ACN No. 11:” Formulation of Norms, Standards,
Procedures and Criteria (NSPK) for Local
Government Service Delivery distributed to MC
members in September 2009. Detailed budget is
being finalized for GOI budget (DIPA)
registration. The project will be jointly executed by
World Bank (WB Executed) and GOI (Recipient
Executed).
3
1.2. Minimum Service Standards
(MSS), in targeted sectors
budgeted, implemented and
monitored in selected district
governments
Adoption and
implementation of MSS in
new sectors in selected
districts
The Manual for MSS Costing (Minister of Health
Decree 317/2009) is being printed for distribution
to all districts/cities by MoHA. Electronic design
system to apply the Manual will be developed.
ACN on Capacity Building for Government and
Regions for MSS Costing and MSS
Implementation is being finalized to be sent to MC
members in October 2009.
3
DSF Quarterly Report
September 2009
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Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
1.3. Alternative service delivery
schemes established in
selected sectors and districts
with better access for women
Number of selected district
governments developed
pilot alternative schemes in
service delivery, and
number of women reached
by these pilot schemes
Alternative Mechanisms for Service Delivery
(AMSD): “Management Strengthening and
Institution Building for Local Public Service
Providers” begun in April 2008 expected to be
completed by November 2009. A „blue print‟ for improving public service
delivery using AMSD model completed July 2009. Assessment of legal and regulatory framework
completed and being revised based on comments
from DSF. Plan on pilot of AMSD (3 regions in Banten)
submitted in July 2009.
ACN on: “Management Strengthening and
Institutional Building for Public Service Delivery”
approved. The project will be executed by GOI
and World Bank for part one i.e. pilot preparation
activities. Detailed budget is being finalized for
DIPA registration.
ToR for baseline study on women‟s access to
public services is being formulated.
Presentation to Technical Working Group on
Improvement of Public Services at Workshop on
Regional Cooperation organized by Directorate
General of General Administration in cooperation
with CIDA-GRSII, July 2009.
Regional workshop on AMSD held for pilot
regions: provinces of Banten, Kabupaten Serang,
and Lebak and Kota Cilegon, August 2009.
3
1.4. Improved public service
delivery in selected local
governments in border areas
Action Plans for improved
public service delivery
adopted in selected local
ACN 8/2009 on “Institution Building for the
Accelerated Development of Border Areas”
approved by MC in August 2009. This combines
X Through this activity both MoHA and
Bappenas seek to strengthen cross-ministerial
institutions, such as
DSF Quarterly Report
September 2009
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Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
governments in border
regions
activity 1.4 on service delivery and 4.3 on
development planning in border regions to provide
integrated support to these regions by linking
Bappenas, MoHA and the Ministry of
Disadvantaged Regions.
MoHA will execute its part using a combination of
recipient executed and World Bank executed
modes at the early stages of the project. Detailed
budget is being prepared for DIPA registration.
the National Agency for the
Management of Border Regions, which
manage and develop border regions as well as
to improve policy for development of border
regions.
Initial work for Bappenas will be
implemented by a consultant while a qualified
implementing agency is identified to
implement the larger part of the work planned
to commence in January 2010. An additional
implementing agency will be contracted to
undertake services to meet MoHA
requirements.
1.5. Improved understanding of
international best practices,
social political dimensions,
costs and benefits and
alternatives for territorial
reform
Evidenced based research
on territorial reform
excepted by three key
ministries: MoF, Bappenas
and MoHA for policy input
Six analyses completed for Bappenas, MoF,
MoHA, DPD, DPR, and local government, with
information on lessons learned from international,
national, and local experience of territorial reform: Experiences in Territorial Reform:
Implications for Indonesia
Territorial Restructuring: Country Case
Studies; and
Process and Implications of the Social-
Political Dimensions of Territorial Reform:
Case Studies from Sambas and Buton.
Costs and Benefits of Proliferation of
Regions (Pemekaran) analysis completed for
MoF with key findings for fiscal transfer
formulas related to pemekaran, November
2007
Evaluation of the Proliferation of
Adminsitrative Regions in Indonesia 2001-
2007
Territorial Reform and People‟s Welfare:
Finding Alternatives
Consultations and dissemination workshops with
national and local multi-stakeholder forums were
1 A Fiscal Agency Agreement (FAA) with
UNDP for coverage of work under territorial
reform, disaster management, and sub
national data was operational until June 30,
2009. UNDP will submit the final report
covering the entire body of work under the
FAA at the latest by December 30, 2009, at
which time the trust funds related to territorial
reform will be closed.
DSF Quarterly Report
September 2009
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Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
held during preparation, finalization, and outreach
for the analyses. Parts of the reports have been
used in presentations and seminars by senior GOI
central and local government officials. The
research also informed policies related to fiscal,
administrative, and social-political aspects of
territorial reform.
1.6. Improved local government
systems for dissemination and
replication of good practices
in service delivery
National policy on good
practices issued
Comparative analysis of ongoing good practice
programs in Indonesia completed in April 2009.
MoHA has held several rounds of consultations on
a draft permendagri (ministerial regulation) on
Best Practices.
The implementation consultants presented a mid-
term report on the project to MoHA in August
2009. In spite of DSF efforts to rectify the situation
it was noted that progress was disappointing. The
consultants had not submitted an Inception Report
in Bahasa Indonesia, nor completed the pilots and
database work as stipulated in the ToR.
A one month no-cost extension was allowed
beyond the project closing date of 30 September
2009, to enable the consultants to meet with GOI
and rectify the lapses.
4 Project implementation was handicapped by
key members of the selected consultancy
team not being available as proposed and
poor compliance to ToRs.
MoHA (Directorate for Capacity Building
and Local Government Performance
Evaluation) has expressed dissatisfaction with
activity performance. Options for resolving
the situation will be assessed in October.
1.7. Local governments implement
effective, efficient and
accountable regulations and
processes for business
licensing
Local government
performance in
implementing OSS for
business licensing
The following outputs were successfully
completed:
National OSS guidelines issued by the Ministry of
Home Affairs in June 2009.
National OSS curriculum developed and used for
OSS training in Bali and North Sulawesi.
Provincial OSS Performance Indices (POPIs)
2 The project is due to close in November 2009,
and is expected to meet its objectives fully.
Project outputs: (i) a national M&E
framework on OSS implementation (ii)
revised OSS guidelines and curriculum and
(iii) revised and updated RIA manual will be
launched at both national level workshop in
Jakarta and two provincial level ones in the
target provinces.
DSF Quarterly Report
September 2009
14
Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
formulated and implemented in Bali and North.
Sulawesi in April-July 2009.
Baseline survey of district licensing for 2
provinces completed.
Training provided to 2 provincial OSS support
units and 2 districts in each province.
Two provincial workshops on improving
Regulatory Impact Assessment (RIA) manual held
in July-August 2009 with Bappenas, Coordinating
Ministry for the Economy and provincial
governments
of Central Java, Bali and North. Sulawesi.
Development of RIA manual completed (Bahasa
Indonesia version being finalized before
translation into English).
The Development of an M&E framework for OSS
and Introduction of standardized IT program are
currently under development; and training on RIA
is being provided to two targeted provincial
governments.
An extension of the project should be
considered to consolidate the capacity
development efforts made during this phase
and to ensure that they result, by 2011, in a
25% decrease in time required for business
licensing in the 24 target districts.
Output 2: Fiscal Decentralization and Capacity Development
Objectives Indicators Progress Rate Comment
2.1. The Ministry of Finance‟s
Regional Financial
Information System
recording local government
budgets is completed
Number of local government
budgets recorded in the
Ministry of Finance Regional
Financial Information
System
DSF is supporting data entry of MoF‟s regional
financial information system (SIKD) for Fiscal
Year 2007. Support duration: May-August 2009.
Data entered and verified to date:
Budget data (APBD, 2009) - 481 districts (94
2 Data entry will be continued under
ACN12/2009. (See 2.2 below). One
component of the ACN deals with data entry
of SIKD; this sub-activity will meet the
target and milestones of objective 2.1.
DSF Quarterly Report
September 2009
15
Output 2: Fiscal Decentralization and Capacity Development
Objectives Indicators Progress Rate Comment
percent of total)
Realization data (LRA, 2007) - 351 districts (75
percent of total).
Two user manuals were prepared: one on data
entry procedures intended for data entry operators
and the other is a guide for users on how to access
the data.
2.2 Strengthened regional
financial information
systems and accessible,
timely and comprehensive
data
MoF Regional Financial
Information System (SIKD)
accurately records local
government budget data
(APBD)
DSF established an effective and efficient
electronic data base and data entry for the financial
year 2006, September 2008.
ACN 12/2009 on „Strengthening Data Provision to
the Regional Financial Information System by
Sub-National Governments with Stand-Alone
Electronic Data Bases‟ reviewed in September
2009.
X
2.3. Improved fiscal
decentralization policy
Implementation of „Grand
Design of Fiscal
Decentralisation‟ across
government ministries and
local governments
Feasibility assessments of possible incentives for
the grants system, including revenue-sharing
intercepts as sanctions for poor performance
completed September 2008.
ACN 13/2009 ACN on “Improving the Policy
Framework for Fiscal Decentralisation (the „Grand
Design of Fiscal Decentralization (GDFD)‟ is
being finalized and discussed with MoF for
submission to DSF MC in October 2009.
X In addition to clarifying and specifying in
more detail the policy framework for fiscal
decentralisation, the ACN will provide
analytical inputs for the revision of Law
33/2004 on fiscal balance between central
government and regional governments.
2.4. National policy on local
government borrowing,
including issuance of
municipal bonds, adopted
A national policy on local
government borrowing,
including issuance of
municipal bonds, adopted
Review of Indonesian Civil Code on issues
relating to debtor and creditor, and
bankruptcy/insolvency completed May 2009.
Analysis and preparatory work for issuance of
Jakarta and Bandung bonds:
3
Directorate of Regional Financing and
Capacity-MoF has submitted request to
expand the scope of activities to the Province
of Kepulauan Riau and Kota Surabaya.
Consultations among members of DSF MC
are underway to accommodate the request.
DSF Quarterly Report
September 2009
16
Output 2: Fiscal Decentralization and Capacity Development
Objectives Indicators Progress Rate Comment
Technical support is being supplied to the
governments of DKI Jakarta and Kota
Bandung
Team for preparation of DKI‟ Jakarta
municipal bonds (Tim Persiapan Obligasi
Daerah/ TPOD) established in July 2009. The
team is discussing selection of project(s) to
be financed by the bonds.
ACN 6/2009 on „Building Capacity for the
Development of Sub-National Government Capital
Markets for Municipal Bonds‟ approved in August
2009. Activities proposed in the ACN are intended
to continue current support and will conclude in
November 2009.
2.5. Improved public financial
management by local
governments (On hold)
Public financial analysis
completed by selected local
governments as basis for
local government planning
and budgeting
Empirical analysis of regional government
surpluses based on data from 27 provinces and 220
districts resulting in report with recommendations
completed June 2008. Empirical analysis on regional government
investment in public infrastructure based on
audited financial data for 2004-2007 completed
June 2009.
X
Activity is currently on hold pending further
discussions with GOI.
2.6. Government pro-poor
special allocation fund
monitored and evaluated
Monitoring and evaluation
reports completed on
expenditures of pro-poor
government fund in selected
local governments
ACN 3/2009 on „Socialization and Pilot
Implementation of Joint Circular Letter (SEB) on
Monitoring of Technical Implementation and
Evaluation of Use of Special Allocation Funds
(DAK)‟ approved in July 09.
X Due to internal staff rotation at Bappenas, the
main contact person for this project had been
replaced. This resulted in slight
modifications in the proposed activities
approved by DSF MC. The adjustments were
agreed to by Bappenas in September 2009.
Procurement documents are being prepared.
DSF Quarterly Report
September 2009
17
Output 3: Increasing Accountability
Objectives Indicators Progress Rate Comment
3.1. Effective legislative
processes, resource
allocation and oversight
functions demonstrated in
selected local legislatures
Number of provincial and
district MPs, including
women MPs, trained in
legislative processes,
budgeting and oversight
ACN 1/2009 on Capacity Strengthening for
DPRD (Local Government Legislatures)
approved by the DSF Management Committee.
Budget negotiations completed with MoHA.
World Bank procurement and financial
management assessments of UPD-MoHA
completed. Draft Grant Agreement prepared and
under review by relevant parties for signature by
World Bank to MoF.
X
3.2. Effective and accountable
public service delivery by
local government officials
and effective monitoring by
CSO leaders demonstrated in
selected local governments
Number of national and local
government officials and
CSO leaders professionally
trained in effective and
accountable public service
delivery
An Activity Concept Note (No. 9/2009) was
prepared ,circulated, and accepted by the DSF
MC with an increased allocation for a total
budget of USD 1.593,520 .The activity covers 3
components which aim to enhance the
professional capacity of local and national
officials to provide and CSOs to monitor
improved public service delivery:
Short courses in country and the region
Study tours
Scholarships for Masters programs in
decentralization related studies in the UK.
X Modes of execution being determined.
3.3. Local training and education
centres demonstrated
improvement in conducting
training programmes for
local government officials
Competency-based training
programmes on decentralized
public service delivery
developed by local
government training centres
ACN 7/2009 “Government Training and
Education Center Development: Introducing
Competency Based Standards for Improved
Public Service Delivery” approved by the DSF
Management Committee. Budget negotiations
completed with MoHA. World Bank procurement
and financial management assessments of Diklat
completed. Draft Grant Agreement prepared and
under review by relevant parties for signature by
World Bank and MoF.
X
3.4. Improved public
accountability of local
governments delivered by
Public accountability
mechanism developed and
implemented by CSOs
The options paper requested by the DSF
Management Committee on local government
engagement is completed and will be discussed at
X In order to meet the objectives stated in 3.4 it
is recommended that an activity addressing
public accountability mechanisms be added
DSF Quarterly Report
September 2009
18
Output 3: Increasing Accountability
Objectives Indicators Progress Rate Comment
CSOs
the October 2009 DSF Management Committee
meeting. The paper describes three options: 1)
LG by invitation to DSF MC meetings, 2) LG
consultative group reporting to DSF MC, and 3)
permanent representation on DSF MC. It also
includes an annex with geographical distribution
of DSF local government activities.
to the DSF Work Plan 2009-2011.
3.5. Improved knowledge sharing
on support to local
governments
Publicly accessible data base
on support to local
government developed and
number of development
forums and harmonization
activities facilitated
A donor mapping database created and made
available online in English and Bahasa Indonesia
at http://www.dsfindonesia.org/apps/dsf-dm/cgi-
bin/dw.cgi. Presented to (i) Director PK-EKD in
MoHA in August 2008 (ii) the donor community
in the Donor Working Group in March, 2009 (iii)
AKLN in MoHA in May, 2009, and (iv)
Bappenas team from Aid for Development
Effectiveness Secretariat (A4DES) in September
2009. Working Group on CSO Accountability
conducted focus group discussions (FGDs) in
Padang, Palembang, Makassar, and Mataram in
March/April 2009 with 76 participating CSOs on:
public service delivery; CSO-LG relations; and
CSOs management and accountability.
1 This project is complete and has met its
objectives.
The database is well received and
commended as a useful tool for coordination
and monitoring of donor support to
decentralization.
GOI keen to incorporate the tool in
government system for monitoring and
reporting on development assistance in
decentralization. DSF will hire short term
consultant to provide continued support for
updating database content and transferring it
to GOI management.
Output 4: Planning and Performance Measurement
Objectives Indicators Progress Rate Comment
4.1. Spatial and sectoral plans
included in local government
annual, medim- term and
long-term development plans
Annual and medium-term
development plans and
budgets adopted by selected
local governments
Capacity Building for Regional Development
Policy Formulation (Part 1) commenced in
September 2009. Implemented by a team of five
consultants.
Capacity Building for Regional Development
Policy Formulation (Part 2). Draft ToR submitted
X This activity seeks to provide key input into
the formulation of regional development
strategies for each of the seven major island
groups.
Inception report will be submitted in October
DSF Quarterly Report
September 2009
19
Output 4: Planning and Performance Measurement
Objectives Indicators Progress Rate Comment
by Bappenas on 8 October. Draft and proposed
budget ($700,000) under discussion.
Implementation planned for Jan-Dec 2010.
ACN No. 5/2009 Institution Building for the
Integration of National-Regional Development
and Spatial Planning. ACN approved by MC in
July 2009. Consultant identified, contracting
underway. Request for expressions of interest for
implementing agency posted in national
newspaper in October 2009.
2009. Planned completion of activity part 1
by end December 2009.
This activity seeks to contribute to the
capacity of national level agencies to link
planning documents, to improve spatial
planning alignment between levels of
government, and to improve local
governments‟ capacity to produce integrated
planning documents.
4.2. Natural resource planning
management policies
developed by targeted local
governments
Local governments adopting
natural resource planning and
management policy
ACN No. 10/2009 on Strengthening Local
Government Natural Resource Management
Capability - review completed in October.
X This activity seeks to improve the way natural
resources are managed by local governments,
thereby contributing to local economic
development. A ToR is being finalised and a
qualified agency will be contracted through a
competitive tendering process.
4.3. Local government in border
regions improved capacity
and accountability in
development planning
Local governments in border
regions which have
completed and made public
their development work plans
ACN 8/2009 on „Institution Building for the
Accelerated Development of Border Areas‟
approved in August.2009. Request for
expressions of interest for implementing agency
advertised in national newspaper in September.
Selection and contracting of consultant in
October 2009.
This combines activity 1.4 on service delivery
and 4.3 on development planning in border
regions to provide integrated support to these
regions by linking Bappenas, MoHA and the
Ministry of Disadvantaged Regions.
X Through this activity both MoHA and
Bappenas seek to strengthen cross-ministerial
institutions, such as
the National Agency for the
Management of Border Regions, which
manage and develop border regions as well as
to improve policy for development of border
regions.
Initial work for Bappenas will be
implemented by a consultant while a
qualified implementing agency is identified to
implement the larger part of the work planned
to commence in January 2010. An additional
implementing agency will be contracted to
undertake services to meet specific MoHA
requirements.
DSF Quarterly Report
September 2009
20
Output 4: Planning and Performance Measurement
Objectives Indicators Progress Rate Comment
4.4. Minimum performance
requirements set by Ministry
of Home Affairs (MOHA)
met by local governments
Number of local governments
achieved minimum
performance requirements set
by MoHA
This activity is currently on hold pending further
internal discussions in MoHA.
X Disagreement on scope of activities (and,
therefore budget) regarding DSF support to
the evaluation of local government
performance.
4.5. Improved accessibility of
data on citizens‟ perceptions
of public service delivery at
local government level as
input for policy
recommendations
Results of citizen satisfaction
surveys publicly available
Governance and Decentralization Survey 2
(GDS2) data available for public use through
www.gds-indonesia.com. User can query
information from the survey interactively; the
query function is available for the 2004 and 2006
rounds of the surveys. The website also contains
information on the survey, including survey
instruments, manuals and notes, as well as data
and selected reports and presentations using the
GDS data.
1 This project is complete and has met its
objectives.
The website will be linked to the DSF
website.
4.6. Improved quality and
availability of sub-national
statistics for local decision
making
Study of sectoral data systems
at central and regional level
with policy recommendations
adopted by BPS (Central
Statistics Agency) and
participating local
governments
„Improving Quality and Availability of Sub-
National Statistics for Local Decision Making &
Streamlining the Flow of Statistics between
Regions and the Center‟ study completed in
support of BPS and local governments, January
2009. National and local level sectoral data systems
analysed for 19 governments (6 provinces, 4 kota,
9 kabupaten), January 2009. Assessment of health data for 11 kabupaten/kota
and assessment of education data for 12
kabupaten/kota completed in January 2009. Final report with 21 policy recommendations
grouped in the categories of:
System Design, Setup and Maintenance;
Promotion of Data Quality; Application of
Information and Communication
Technology;
Human, Physical and Financial Resources;
1
This project is complete and has met its
objectives.
The findings from this project are relevant to
many other DSF projects since these rely on
the availability of quality sub-national
sectoral data. Follow-on to this project could
include extension of the web-based system
for transmitting data from technical agencies
at the sub-national level to relevant ministries
in Jakarta. Capacity building recommended
for local governments in relation to use of
information technology.
DSF Quarterly Report
September 2009
21
Output 4: Planning and Performance Measurement
Objectives Indicators Progress Rate Comment
Strengthening of Data Sharing, Analysis,
and Utilization; and
Legislation and Regulation, May 2009.
4.7. Improved local regulatory
frameworks to assist local
government to provide
quality services and ensure
consistency between national
and district level programs
Number of policy notes and
consolidated on line national
data base of local government
regulations
Creation of a national-level working group on
local regulations; chaired by Bappenas
(Directorate of Law and Human Rights) with
participation across departments and from non-
government organizations and donors. A policy
paper on local regulations was produced. Establishment of local working groups and local
regulations information centers in Parepare, East
Lombok, Purbalingga, Sumedang and Solok. Four draft policy notes, two to be published by
December 2009: „Ensuring the Sustainability of
Pro-poor Programs through Local Regulations‟;
„Developing the Role of the DPRD in Supporting
Participative Local Regulations‟. Expansion of perdaonline.org to cover over 3,000
local regulations from over 60 districts. Guidelines for local governments for the drafting
of local regulations.
2 This project is complete and has met its
objectives.
Output 5: Improved Development Effectiveness in Eastern Indonesia
Objectives Indicators Progress Rate Comment
5.1. Increased cooperation and
harmonization among key
development stakeholders
including national and
targeted local governments,
Number of new coordination
networks and harmonization
and sustainability initiatives
Provincial government/donor coordination group
including 5 international development partners
facilitated in South Sulawesi: quarterly meetings;
email discussion list; and 3joint field visits to
date.
2
Significant support provided on request to
international development partners, local
governments and local NGOs. Recent
evaluation indicates most stakeholders
deemed this to be very valuable.
DSF Quarterly Report
September 2009
22
Output 5: Improved Development Effectiveness in Eastern Indonesia
Objectives Indicators Progress Rate Comment
NGOs. academics, donors,
DSF and private sector
Two planning workshops supported for JiKTI
(Eastern Indonesia research Network) resulting in
agreement on priorities, including researcher
capacity building and directories (see below).
SOfEI facilitated discussions between Eastern
Indonesia Researcher Network (JiKTI) Focal
Point and the AusAID team working on a new
initiative to revitalize Indonesia‟s knowledge
sector. This joint work will strengthen JiKTI‟s
institutional foundations and support research
cooperation in eastern Indonesia.
Infrastructure and support for JiKTI members to
maintain an active mailing list for sharing of
research opportunities, research papers and other
information.
Seven funded research partnerships including on
education, governance, local revenue
mobilization and civil service capacity building
resulting from a joint JiKTI/AIGRP (Australia
Indonesia Governance Research Program)
mentoring workshop. Research will be
completed, published and disseminated by
December 2009. Three directories on research, researchers and
research institutions in eastern Indonesia,
prepared jointly with the Indonesian Institute of
Sciences and widely disseminated to government,
donors and universities to improve access to
research and researchers in eastern Indonesia. Coordination support for education donors in
South Sulawesi to ensure structured and
sustainable foundation through joint activities and
facilitating consistent provincial government
leadership is ongoing. A Quarterly meeting held
The next meeting of the JiKTI Focal Points
will be held in October 2009. The meeting
will identify areas for collaboration between
JiKTI and a new AusAID initiative to
strengthen research quality and develop
evidence-based policy in eastern Indonesia.
SOfEI‟s excellent relationship currency with
high level local government officials in South
Sulawesi, including the Governor, allows it to
encourage and mentor government and its
international partners toward improved
cooperation and harmonization. BaKTI will
promote the approach and lessons learned to
other provincial governments in eastern
Indonesia.
DSF Quarterly Report
September 2009
23
Output 5: Improved Development Effectiveness in Eastern Indonesia
Objectives Indicators Progress Rate Comment
in September 2009 for provincial
government/education donors in South Sulawesi
agreed on a series of joint activities to be
implemented under provincial government
leadership. SOfEI together with CIDA initiated Governance,
Environment and Gender Working Group
workshops involving CIDA funded project teams
in Sulawesi.
5.2. Improved access to
information, and increased
learning and adoption of
good practices among
development stakeholders in
eastern Indonesia
Library, and Eastern
Indonesia Portal and website
operational and accessible,
distribution of monthly
magazine, and adoption of
good practices handbook by
number of development
stakeholders in eastern
Indonesia
Library access has increased from an average of
150 visitors per month in 2007 to 205 (YTD) in
2009. Visitors to the BaKTI facility in Makassar for
meetings, events, research and access to
computers and internet increased from an average
of 1,000 per month in 2007 to 1,500 per month
during 2009. Website traffic has increased from 3000 unique
monthly visits to 7000 since it was re-launched in
August 2008. Circulation of BaKTI News magazine is 2,500
per month with estimated read on rate of 5
readers per copy. 2009 survey indicates more
than 75 per cent of readers were satisfied with
BaKTI News promotion of good practices and
improved development knowledge. More than 40
per cent of those surveyed had applied ideas from
BaKTI News in their work. Anecdotal and questionnaire responses suggest
that good practices promoted by SOfEI are being
replicated in other regions, e.g. Yayasan Siwa
Lima, Ambon, Maluku Province reported that an
2
Handbook of smart practices is being
developed and will be printed in November
2009. The documentary film on Micro Hydro
in West Sulawesi is underway and will be
completed in December 2009.
An English language website version will be
available in December 2009.
The formal Launch of the Portal is planned
for November 2009.
BaKTINews launched a number for SMS
communication from readers including
comments, complaints and contact data
updating. Response has been positive.
DSF Quarterly Report
September 2009
24
Output 5: Improved Development Effectiveness in Eastern Indonesia
Objectives Indicators Progress Rate Comment
article in
BaKTI News about cocoa cultivation developed
by IFC PENSA led to a cocoa sustainability
partnership between the two groups. Health
mapping initiatives from Luwu Timur published
in BaKTI News have been replicated in Mamuju
district, West Sulawesi.
The Eastern Indonesia Portal design was
introduced to BaKTI staff. In September 2009. It
has been launched internally and will remain
open to inputs or suggestions until the end of
October 2009.
5.3. Development stakeholders
in eastern Indonesia have
input and influence on
development agendas and
policies
National Medium Term Plan
reflects Eastern Indonesia
development interests and
Local Governments adopt
policies on targeting poverty
programs.
Facilitation of three semi-annual meetings of
Eastern Indonesia Provincial Heads of
BAPPEDA dialogue with BAPPENAS on
National Medium Term Plan, 2010 - 2014.
Priorities identified promoted to National
Development Planning Consultations
(Musrenbangmas). Assistance for DPRD in Central Sulawesi to
ensure effective discussion and timely passage of
the provincial Budget for 2008. A poverty mapping program supported by SOfEI
and UNICEF has been replicated in all sub-
districts in two districts in West Sulawesi and is
planned to be replicated in all districts in West
Sulawesi in 2009. Two Eastern Indonesia Forum regional policy
dialogues held under DSF to discuss and promote
policy priorities for the region.
2 The next Heads of BAPPEDA meeting will
be held in Jayapura in November 2009.
Contacts were made with BAPPENAS
regarding the potential for cooperation on
regional consultations in Sulawesi, Maluku,
Nusa Tenggara and Papua for the next
national medium term development plan
(RPJMN 2010-14).
National media visit will be conducted in
October 2009 to get national exposure of
smart practices and to secure commitment
from National Media to provide special
coverage on development issues in Eastern
Indonesia where BakTI plays an active role as
an information resource.
DSF Quarterly Report
September 2009
25
Output 5: Improved Development Effectiveness in Eastern Indonesia
Objectives Indicators Progress Rate Comment
The Fourth Eastern Indonesia Forum (EIF) was
conducted in August 2009 with 230 participants
representing Central Government (MoHA,
Bappenas), Local Government (Head of
Bappeda, Bupati/Mayor, Head of SKPD, Sekda,
Academics, Media, Local NGOs, Legislative
members, Private Sector (KADIN), and
International Development Partners. 12 smart
practices from 12 provinces in Eastern Indonesia
were presented and documented. 43
organizations participated in exhibitions. A
special edition of BaKTI News focused on smart
practices and policy discussions during the
Forum. Outputs from Forum (including
documentation on smart practices) circulated to
participants as well as decision-makers in
government and NGOs. Key Issues discussed
include a regional approach with inter-regional
cooperation using an island-based development
approach, social communication, joint social
marketing and joint advocacy for local
innovations (local smart practices) as well as the
importance of data in policy making. Feedback
from Forum participants was very positive. Good
media coverage of the Forum.
One Smart Practice from the Eastern Indonesia
Forum will be presented in a documentary film.
DSF Quarterly Report
September 2009
DSF Quarterly Report
September 2009
27 27
Annex B: Financial Report
I. Donor Contributions
DSF has 9 donor partners, 3 of whom are financial contributors: DFID, AusAID, and
CIDA. Total pledges amount to USD 44.77 million (30 September 2009 exchange rate).
About 96.65% of the total amount (USD 43.27 million) has been pledged by DFID. As of
30 September 2009, DSF had received USD 29 million or 65.78% of total pledges (see
Table 1): USD 27.50 million from DFID, USD 1 million from AusAID, and USD 500K
from CIDA.
An additional GBP 360,000 has been formally pledged by DFID for the beginning of
FY2010
Contributions received from DFID during the quarter amounted to USD 6.70 million.
Table 1: Pledges Received on the Basis of Signed Contribution Agreements
Contributors Contribution
Currency
Contribution
Amount USD equivalent
Cash Received
in USD million
DFID GBP 24.36 43.27 27.50
AusAID USD 1.00 1.00 1.00
CIDA CAD 0.50 0.50 0.50
Total
44.77 29.00
II. Approved Projects and Fund Allocations
The projects and allocations set out in Table 2 were approved by the MC at its meetings of
24 January 2007, 16 February 2007 and 12 February 2009.
Table 2: Approved Projects and Allocation of Funds at 30 September 2009
Budget (USD)
Total Pledges 44,766,214
Investment income (as of September 30, 2009) 1,342,420
Projected Administration fee (1% of total pledges) 447,662
Other Income (as of September 30, 2009) 24,754
Total Available Funds 46,581,050
Summary
Donor Contributions: Three donors have pledged a total of USD 44.77 million
(exchange rate September 30, 2009).
Commitments: USD 43.50 million or 97% of total pledges has been allocated to 31
projects, the approved DSF Work Plan 2009 – 2011, and DSF operations.
Disbursements: USD 14.56 million or 32.51% of total contributions pledged or 33.13%
of allocations.
Remaining Funds: USD 3.08 million in unallocated and uncommitted funds.
DSF Quarterly Report
September 2009 September 2009
DSF Quarterly Report
28 28
Budget (USD)
Projects
Focal Area 1 2,968,714
Tax Assignment and Own-source Revenue -
Transfer 350,000
Borrowing 600,000
Surplus and Reserves 275,000
Data for Monitoring and Evaluation 480,000
Assessing and Revising the System for Setting Territorial Boundaries 227,500
Fiscal Agency Intergovernmental Framework Fund[1] 476,214
Exploring Future Reform Options in Functional Assignment 55,000
Supporting the Establishment of Financially Feasible Minimum Service Standards 305,000
Alternative Mechanism of Service Delivery 200,000
Focal Area 2 1,808,059
Local Government Performance Measurement 187,174
Identification and Replication of Good Practice 478,000
Appraisal : Sub national Investment Climate Reform 600,000
Knowledge Management for Effective Local Government Support Programs 375,500
Mapping and Analysis of Local Planning and Budgeting Processes 49,703
Improved Evidence Base of Good and Bad Local Perda 117,682
Focal Area 3 5,474,414
National Program for Community Empowerment 1,080,522
CDD Summit 421,705
Policy Development for PNPM 104,275
Cost Accounting Review for CDD Programs 16,512
Technical Assessment for CDD Programs 53,685
Information, Education and Communication for PNPM 485,000
User Fee Assessment for CDD Programs 419,000
MIS Improvement for PNPM 106,000
Short Term Monitoring and Evaluation 713,488
Medium / Long Term Monitoring and Evaluation 399,925
CCT Baseline Survey 1,674,301
Support Office for Eastern Indonesia (SOfEI) 3,310,588
Quick starts 97,908
New projects approved and registered in FY09 1,150,000
Priority Area 4
Institutional Building for the Integration of National Regional Development and Spatial Planning 500,000
Capacity Building for Regional Development Policy Formulation 150,000
Institution Building for the Accelerated Development of Border Areas 500,000
DSF Quarterly Report
September 2009
DSF Quarterly Report
September 2009
29 29
Budget (USD)
Approved Work Plan 2009-2011 in process of registration 12,535,265
Priority Area 1 - Public Service 3,200,000
Priority Area 2 - Fiscal Decentralization 2,700,000
Priority Area 3 - Governance Reform 2,096,760
Priority Area 4 - Planning and Performance Measurement 1,750,000
Knowledge Management for Aid Effectiveness 700,000
DSF Executive Operations 1,502,043
Additional donor contribution for DSF Operations 586,462
Approved 2009-2011 allocation to Priority Areas for future activities 8,453,240
Priority Area 1 - Public Service 1,500,000
Priority Area 2 - Fiscal Decentralization 1,800,000
Priority Area 3 - Governance Reform 2,503,240
Priority Area 4 - Planning and Performance Measurement 2,650,000
Project Operations thru September 30, 2009 7,700,000
Staff costs 4,200,000
Operations costs 3,500,000
Total approved budget allocation to projects 43,498,188
Total Unallocated and Uncommitted Funds[2] 3,082,862
[1] This budget is part of the USD 632,500 Fiscal Agency Agreement (FAA) with UNDP. The entire FAA covers 3 work
streams: (i) Natural Disaster Management (USD 200,000); (ii) Pemekaran (USD 227,500); and (iii) Data for Monitoring
and Evaluation (USD 205,000). In September 2008, the FAA was amended, and the budget revised to USD 476,214.
[2] Fund balance for unallocated and uncommitted funds fluctuates according to the prevailing exchange rate and return
on investment.
III. Disbursement Status
To date, DSF has received USD 30.37 million, consisting of USD 29 million of donor
contributions (65% of total pledges) and USD 1.34 million of investment income. As of
September 30, 2009, USD 14.27 million had been disbursed to work streams and
operations. In addition, a total of USD 290K has been spent on administration (see Table
3).
Focal Area 1 (Strengthening Inter-Governmental Framework) has disbursed USD 1.95
million or 66% of the total approved budget of USD 2.97 million. There are signed
commitments of USD 191K.
Focal Area 2 (Support to Sub-National Entities) has disbursed USD 656,000 or 36% of
the total approved budget of USD 1.81 million. Two one-year long projects totalling USD
1.078 million - for Appraisal of Sub-national Investment Climate Reform and Identification
and Replication of Good Practices – operated throughout the reporting period. For both
projects, disbursements are expected to be spread evenly throughout the project year.
The SC meeting held on September 5, 2008 decided to terminate the Local Government
Performance Measurement project. The budget allocation, amounting to about USD 1.2
million, has been returned to unallocated funds.
DSF Quarterly Report
September 2009 September 2009
DSF Quarterly Report
30 30
Focal Area 3 (Strengthening Accountability, Participation and Civic Engagement) has
disbursed USD 5.33 million or 97.50% of the total approved budget of USD 5.47 million.
Signed commitments of USD 86,000 are expected to be disbursed by year-end.
Table 3: Disbursement Status of the DSF as of September 30, 2009
Budget
(USD)
Actual
(USD)
Commitments
(USD)
Receipts
Paid in Contributions 44,766,214 29,000,052
Investment Income 1,342,420
Other Income
24,754
Total Receipts 44,766,214 30,367,226
Disbursements
Focal Area 1 2,968,714 1,946,310 191,665
Tax Assignment and Own-source Revenue * - - -
Transfer 350,000 90,754 900
Borrowing 600,000 466,671 85,857
Surplus and Reserves 275,000 168,105 15,000
Data for Monitoring and Evaluation 480,000 305,307 478
Assessing and Revising the System for Setting Territorial Boundaries 227,500 227,500 -
Fiscal Agency Intergovernmental Framework Fund 476,214 476,214 -
Exploring Future Reform Options in Functional Assignment 55,000 43,850 7,634
Supporting the Establishment of Financially Feasible Minimum Service
Standards 305,000 47,920 2,029
Alternative Mechanism of Service Delivery 200,000 119,989 79,766
Focal Area 2 1,808,059 656,646 464,384
Local Government Performance Measurement 187,174 187,174 -
Identification and Replication of Good Practice 478,000 143,397 334,593
Appraisal : Sub national Investment Climate Reform 600,000 119,823 129,791
Knowledge Management for Effective Local Government Support
Programs 375,500 38,867 -
Mapping and Analysis of Local Planning and Budgeting Processes 49,703 49,703 -
Improved Evidence Base of Good and Bad Local Perda 117,682 117,682 -
Focal Area 3 5,474,414 5,325,298 85,987
National Program for Community Empowerment 1,080,522 1,072,961 -
CDD Summit 421,705 421,705 -
Policy Development for PNPM 104,275 58,666 -
Cost Accounting Review for CDD Programs 16,512 16,512 -
Technical Assessment for CDD Programs 53,685 53,685 -
Information, Education and Communication for PNPM 485,000 484,739 -
User Fee Assessment for CDD Programs 419,000 343,892 73,468
MIS Improvement for PNPM 106,000 93,161 12,520
Short Term Monitoring and Evaluation 713,488 710,385 -
Medium / Long Term Monitoring and Evaluation 399,926 399,926 -
DSF Quarterly Report
September 2009
DSF Quarterly Report
September 2009
31 31
Budget
(USD)
Actual
(USD)
Commitments
(USD)
CCT Baseline Survey 1,674,301 1,669,665 -
Decentralization Support for Eastern Indonesia (SofEI) 3,310,588 2,623,454 204,535
Quick starts 97,908 97,908 -
New projects approved and registered in FY09 1,150,000 - 92,467
Priority Area 4
Institutional Building for the Integration of National Regional
Development and Spatial Planning 500,000 - -
Capacity Building for Regional Development Policy Formulation 150,000 - 92,467
Institution Building for the Accelerated Development of Border Areas 500,000 - -
Approved 2009-2011 workplan in registration process
12,535,265 - -
Priority Area 1 - Public Service
3,200,000 - -
Priority Area 2 - Fiscal Decentralization
2,700,000 - -
Priority Area 3 - Governance Reform
2,096,760 - -
Priority Area 4 - Planning and Performance Measurement
1,750,000 - -
Knowledge Management for Aid Effectiveness 700,000 - -
DSF Executive Operations 1,502,043 - -
Additional donor contribution for DSF Operations 586,462
Approved 2009-2011 allocation to Priority Area for future activities 8,453,240 - -
Priority Area 1 - Public Service 1,500,000 - -
Priority Area 2 - Fiscal Decentralization 1,800,000 - -
Priority Area 3 - Governance Reform 2,503,240 - -
Priority Area 4 - Planning and Performance Measurement 2,650,000 - -
Project Operations 7,700,000 3,617,712 161,684
Staff costs 4,200,000 1,941,159
Operation costs 3,500,000 1,676,553 161,684
Total Project Disbursements 43,498,188 14,267,327
Administration fee 447,662 290,001
Total Disbursements 43,945,850 14,557,328
Outstanding commitments 1,200,723 1,200,723
Total Cash Available (= Funds receipts - Disbursements -
Commitments) 14,609,175
Support Office for Eastern Indonesia (SOfEI) has disbursed USD 2.62 million or 79% of
the total USD 3.31 million approved budget. Signed commitments of USD 205,000 and
USD 490,000 signed consultant contracts are to be disbursed by December 2009.
For DSF operations, USD 3.62 million has been disbursed. This includes office and
project operations as well as staff costs.
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September 2009 September 2009
DSF Quarterly Report
32 32
Outstanding commitments: USD 1.20 million plus USD 2.5 million of signed DSF staff
contracts are to be disbursed over the life of the DSF.
Total cash available as of September 30, 2009 is USD 14.61 million, including USD 8
million that is either in the process of being allocated to child TF or earmarked for such
allocation.
Outlook
Table 4 shows expected cash receipts and disbursements for the current and projected
portfolio of projects. The Fund expects to disburse USD 6.75 million to project accounts in
Fiscal Year 2010.
Table 4 is based on total project funds committed, as set out in the current Contribution
Agreement and Administrative Agreement. The current DSF TF closing date is September
30, 2011.
Table 4: Projection of Cash Receipts and Disbursements 2007 – 2011
Actual per
Sept. 30, 2009
(USD million)
Year ended
June 30, 2010
(USD million)
Year ended
June 30, 2011
(USD Million)
Projections
as of
Sept. 30, 2011
(USD million)
Expected Receipts
Projected Cash Remaining from prior
period 0 14.60 17.23 11.94
Paid in Contributions
DFID 27.5 9 8.27 0
AusAID 1 0 0 0
CIDA 0.5 0 0 0
Cash Receipt during current period 29.00 23.6 25.50 11.94
Investment Income 1.34 0.47 0.51 0.24
Other Income 0.03 0 0 0
Expected Cash Available to DSF TF 30.37 24.07 26.01 12.18
Disbursements
Focal Area 1 1.95 1.02 0 0
Focal Area 2 0.66 1.2 0 0
Focal Area 3 5.33 0.14 0 0
Eastern Indonesia projects (SoFEI) 2.62 0.69 0 0
Quick starts 0.1 0 0 0
Project Operations 3.62 2.6 3.7 0.58
Priority Area per FY09
Public Services 0 0 4.2 1.5
Fiscal Decentralization 0 0 2.5 3
Planning and Performance Measurement 0 1.15 1.7 3.7
Governance Reform 0 0 1.89 3.4
DSF Quarterly Report
September 2009
DSF Quarterly Report
September 2009
33 33
Actual per
Sept. 30, 2009
(USD million)
Year ended
June 30, 2010
(USD million)
Year ended
June 30, 2011
(USD Million)
Projections
as of
Sept. 30, 2011
(USD million)
Total Project Disbursements (Projections) 14.28 6.75 14.0 12.2
Administration fee 0.29 0.09 0.08 0
Total Disbursements (Projections) 14.57 6.84 14.07 12.2
Outstanding commitments 1.2 0 0 0
Total Cash Available for subsequent
year(s) 14.60 17.23 11.94 0.00
DSF Quarterly Report
September 2009 September 2009
DSF Quarterly Report
34 34
Annex C: List of Acronyms
ACCESS = Australian Community Development & Civil Society Strengthening Scheme
ADKASI = Asosiasi DPRD Kabupaten Seluruh Indonesia (Association of Indonesian District
DPRD)
ADS = Australian Development Scholarship
AMSD = Alternative Mechanisms of Service Delivery
APBD = Anggaran Pendapatan Belanja Daerah (Province/District Budget)
AusAID = Australian Agency for International Development
BAKTI = Bursa Kawasan Timur Indonesia (East Indonesia Exchange)
BAPPEDA = Badan Perencanaan Pembangunan Daerah (Local Planning & Development Agency)
BAPPENAS = Badan Perencanaan Pembangunan Nasional (National Planning & Development Agency)
BPK = Badan Pengawas Keuangan (Audit Board of the Republic of Indonesia)
BPMD = Badan Pengembangan Masyarakat Desa (Community Empowerment Agency)
CCT = Conditional Cash Transfer
CDD = Community Driven Development
CIDA = Canadian International Development Agency
CIPSED = Canada Indonesia Private Sector Enterprise Development
CSO = Civil Society Organization
DFID = Department for International Development
DG = Director General
DKI = Daerah Khusus Ibukota (Jakarta Special Region)
DSF = Decentralization Support Facility
EIP = East Indonesian Portal
EKPPD = Evaluasi Kinerja Penyelenggaraan Pemerintah Daerah (Local Government Performance
Evaluation)
ETC = Extended Term Consultant
FAA = Fiscal Agency Agreement
GDS2 = Governance and Decentralization Survey 2
GOI = Government of Indonesia
GTZ = Gesellschaft für Technische Zusammenarbeit (German Technical Co-operation)
HIV/AIDS = Human Immunodeficieny Virus/Acquired Immuno Deficiency Syndrome
IDPL = Infrastructure Development Policy Loan
IFC = International Finance Cooperation
ILO = International Labor Organization
IPEA = Initiative for Public Expenditure Analysis
JiKTI = Jaringan Peneliti Kawasan Timur Indonesia (East Indonesia Researcher Network)
KDP = Kecamatan Development Program
KPPOD = Komite Pemantauan Pelaksanaan Otonomi Daerah (Monitoring Committee for Local
Autonomy Implementation)
LGPM = Local Government Performance Measurement
LIPI = Lembaga Ilmu Pengetahuan Indonesia (Indonesian Institute of Science)
M&E = Monitoring & Evaluation
MC = Management Committee
MDG = Millennium Development Goal
MKPP = Matriks Konsolidasi Perencanaan dan Penganggaran (Consolidated Matrix for Planning
and Budgeting)
MOF = Ministry of Finance
MOHA = Ministry of Home Affairs
DSF Quarterly Report
September 2009
DSF Quarterly Report
September 2009
35 35
MOU = Memorandum of Understanding
MSS = Minimum Service Standard
NCG = Nordic Consulting Group
NGO = Non-Government Organization
NSPK = Norma, Standar, Prosedur dan Kriteria (Norms Standard Procedures and Criteria)
NTB = Nusa Tenggara Barat (West Nusa Tenggara)
NTT = Nusa Tenggara Timur (East Nusa Tenggara)
OSS = One Stop Shop
PDKBM = Pemutakhiran Data Kemiskinan Berbasis Masyarakat (Community Based Poverty Data
Updating)
PEACH = Public Expenditure Analysis and Capacity Enhancement
PEMDA = Pemerintah Daerah (Local Government)
PMD = Pembangunan Masyarakat Desa (Local Community Development)
PMK = Peraturan Menteri Keuangan (Finance Minister Regulation)
PNPM = Program Nasional Pemberdayaan Masyarakat (National Program for Community
Empowerment)
PSF = PNPM Support Facility
RED = Regional Economic Development
RESPEK = Rencana Strategis Pembaruan Kampung (Strategic Plan for Village Reform)
RTI = Research Triangle Institute
SC = Steering Committee
SOFEI = Support Office For East Indonesia
STC = Short Term Consultant
TA = Technical Assistance
TAF = The Asia Foundation
TF = Trust Fund
UKAW = Universitas Kristen Artha Wacana (Artha Wacana Christian University)
UNDP = United Nations Development Program
UNICEF = United Nations Children's Fund
WB = World Bank
YIPD = Yayasan Inovasi Pemerintah Daerah (Foundation for Local Government Innovation)