final cover lap dfid 22 feb 05 - world...

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Government of IndonesiaGovernment of IndonesiaGovernment of IndonesiaGovernment of IndonesiaGovernment of Indonesia

November, 2004November, 2004November, 2004November, 2004November, 2004

I L G R

Initiatives for Local Governance Reform

Initiatives for Local Governance Reform

Tanah Datar

Solok

Boalemo

Bolaang Mongondow

Cluster E

Gowa

Takalar Bulukumba

Cluster FBandung

Majalengka

Magelang

Lebak

Bantul

Kebumen

Ngawi

Lamongan

Cluster C

Cluster

Cluster A

TF Name : Kabupaten Governance Reform and Initiatives Program (KGRIP) /

Initiatives for Local Governance Reform (ILGR)

TF Number : 051663 (Bank-executed) and 052572 (GoI-executed)

Report Date : November 29, 2004

Net Grant Amount : $1,333,801 (TF 051663) and $589,930 (TF 052257)

Donor : Department for International Development, Government of United Kingdom

Approval Date : February 2003

Closing Date : December 31, 2004

Table of Contents

Table of Contents ........................................................................................................................................................ i List of Tables, Figures and Boxes............................................................................................................................ iii Glossary ................................................................................................................................................................... iv A. Introduction.........................................................................................................................................................1

Project Rationale ....................................................................................................................................................1 Report Structure ....................................................................................................................................................1

B. Original Statement of Grant Objectives ........................................................................................................2 C. Detailed Activities, Outputs and Impacts......................................................................................................3

Component 1. Development of Core Reform Package ..........................................................................................3 Outcomes/Impacts ................................................................................................................................................ 3 Results/Outputs..................................................................................................................................................... 3 Process/Activities .................................................................................................................................................. 3

Component 2. Governance Studies .......................................................................................................................4 Component 2.a. Governance and Decentralization Baseline Study .....................................................5

Results/Outputs..................................................................................................................................................... 5 Process/Activities .................................................................................................................................................. 6

Component 2.b. Diagnostic Study on the Kabupaten Reform Process................................................7 Results/Outputs..................................................................................................................................................... 7 Process/Activities .................................................................................................................................................. 8

Component 2.c. Study on Accountability Mechanism...........................................................................8 Results/Outputs..................................................................................................................................................... 8 Process/Activities .................................................................................................................................................. 9

Component 3. Piloting Decentralized Participatory Poverty Assessment............................................................9 Component 3.a Participatory Poverty Assessment .................................................................................9

Outcomes/Impacts .............................................................................................................................................. 10 Results/Outputs................................................................................................................................................... 10 Process/Activities ................................................................................................................................................ 13

Component 3.b. General Facilitation and Governance Reform ...........................................................16 Outcomes/Impacts .............................................................................................................................................. 17 Results/Outputs................................................................................................................................................... 19 Process/Activities ................................................................................................................................................ 22

Component 4. Inter-kabupaten Networking and Knowledge Transfer ...............................................................24 Inter-kabupaten Sharing............................................................................................................................24

Outcomes/Impacts .............................................................................................................................................. 24 Results/Outputs................................................................................................................................................... 24 Process/Activities ................................................................................................................................................ 25

Capacity Building for Newly Elected District Parliaments (DPRD) ...................................................26 Outcomes/Impacts .............................................................................................................................................. 26 Results/Outputs................................................................................................................................................... 26 Process/Activities ................................................................................................................................................ 27

Capacity Building for Planning and Budgeting .....................................................................................28 Outcomes/Impacts .............................................................................................................................................. 28 Results/Outputs................................................................................................................................................... 28 Process/Activity................................................................................................................................................... 30

Project Preparation Activities ...................................................................................................................32 Outcomes/Impacts .............................................................................................................................................. 32 Results/Outputs................................................................................................................................................... 32 Process/Activities ................................................................................................................................................ 32

D. Facilitation Strategy .........................................................................................................................................33 E. Lessons Learned................................................................................................................................................37

Facilitation ...........................................................................................................................................................38 Support from the National Level ..........................................................................................................................39

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DRAFT ILGR Report 2003-2004

Reformer Identification and Mapping..................................................................................................................40 Accelerating Further Reform................................................................................................................................40 Inter-kabupaten Knowledge Sharing....................................................................................................................41 Networking with Other Donors ...........................................................................................................................42

F. Financial Reports..............................................................................................................................................44 List of Annexes..........................................................................................................................................................45

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List of Tables, Figures and Boxes

Table 1. Detail Roadshow Implementation in 3 Clusters...................................................................................4 Table 2. Progress of the PRSAP Formulation Process as of November 2004 ................................................11 Table 3. PRSAP Status and Its Follow-up Action..............................................................................................11 Table 4. Capacity Building Activities in PRSAP Formulation.........................................................................13 Table 5. Concrete Reform Initiatives Implemented by Kabupaten, period January to November 2004...17Table 6. Progress of Formulation of Perda on Transparency and Participation, as of November 2004 ....20Table 7. Perda on Transparency and Participation and Its Follow-up Action..............................................21 Table 8. Legal Drafting Trainings/Workshops .................................................................................................22 Table 9. DPRD Workshops on Good Governance ............................................................................................27 Table 10. Participatory Planning and Budgeting Workshop.............................................................................28 Table 11. Pre-Workshop Self Assessment ............................................................................................................31 Figure 1. Household Perception of Service Quality in Education and Health Services ..................................5 Figure 2. Level of Citizen Participation and Political Awareness ......................................................................6 Figure 3. Household Perception of Some Services in the Last Two Years (2003-2004)....................................6 Figure 4. Coverage of Local Regulations on Transparency and Participation and Overlaps with

Procurement and Financial Management Reforms............................................................................24 Figure 5. ILGR Facilitation Strategy......................................................................................................................35 Box 1. Integration of PRSAP in the Annual Planning Process in Ngawi .......................................................10 Box 2. Linking the PRSAP to the Annual Plannning Process in Boalemo......................................................10 Box 3. Public Consultation at the Community Level in Bantul .......................................................................15 Box 4. Bajo Village: Government Changes - According to the Poor ..............................................................17 Box 5. Village Block Grant ...................................................................................................................................18 Box 6. Transparent Civil Servant Recruitment – Boalemo and Bulukumba..................................................19 Box 7. Social Inclusion in Gowa ...........................................................................................................................33 Box 8. Multi-Stakeholder Discussion on Education in Bantul .........................................................................34 Box 9. The Count Down To Changes: Getting the Transparency And Participation Bills Through ..........36 Box 10. Reform Initiatives: Kabupaten Boalemo .................................................................................................38Box 11. Initial Procurement Reform in Boalemo..................................................................................................40 Box 12. Public Budget Reviews ..............................................................................................................................41

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Glossary

AKU Arah dan Kebijakan Umum APBD Annual Budget Policy APBD Anggaran Pendapatan Belanja Daerah District Budget BAKD Badan Akuntansi dan Keuangan

Daerah Local Finance and Accounting Unit

BAPPEDA Badan Perencanaan Pembangunan Daerah

Local Development Planning Board

BPD Badan Perwakilan Desa Village Council CBO - Community Based Organization CDD - Community Driven Development CIDA - Canadian International Development

Agency CPPS - Center for Public and Policy Studies CSO - Civil Society Organization DAU Dana Alokasi Umum General Block Grant DfID - Department for International

Development (GB) DPRD Dewan Perwakilan Rakyat Daerah Local Parliament F-Kab Fasilitator Kabupaten Kabupaten Facilitator GDS - Governance and Decentralization Survey GoI - Government of Indonesia Golkar Golongan Karya Functional Group-Indonesian Political

Party GTZ Gesellschaft für technische

Zusammenarbeit German Technical Cooperation

ILGR - Initiatives for Local Governance Reform (WB)

KADIN Kamar Dagang dan Industri Chamber of Commerce Keppres Keputusan Presiden Presidential Decree KGRIP - Kabupaten Governance and Reform

Initiative Project (WB) KPK Komite Penanggulangan Kemiskinan Poverty Alleviation Committee LPJ Laporan Pertanggung Jawaban Accountability Report MDG - Millenium Development Goals MoF - Ministry of Finance MoHA - Ministry of Home Affairs Musbangdes Musyawarah Pembangunan Desa Village Development Planning Meeting Musrenbang Musyawarah Perencanaan

Pembangunan Regional (Kabupaten-level) Development Planning Meeting

NDI - National Democratic Institute NFC - National Field Coordinator (ILGR) NGO - Non-Government Organization PDI-P Partai Demokrasi Indonesia Perjuangan Indonesian Democratic Party of Struggle

Party Perda Peraturan Daerah Local Regulation

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PHRD - Program on Human Resources and Development (Japan TF)

PMD Pembangunan Masyarakat Desa Village Community Empowerment Office PPA - Participatory Poverty Assessment PPP Partai Persatuan Pembangunan Development Unity Party PRA - Participatory Rapid Appraisal PRSAP - Poverty Reduction Strategy and Action

Plan Rakorbang Rapat Koordinasi Pembangunan Development Planning Meeting at district

level (currently called Musrenbang Kabupaten)

RASK Rencana Anggaran Satuan Kerja Detailed agency budget document Renstra(da) Rencana Strategis Daerah Local Development Strategic Plan RPJMD Rencana Pembangunan Jangka

Mengenah Local Medium-Term Development Plan

Rp. Rupiah Indonesian Currency SK Bupati Surat Keputusan Bupati Bupati Decree Susenas Survei Sosial Ekonomi Nasional National Socio-Economic Household

Survey TAF - The Asia Foundation TF - Trust Fund TNI Tentara Nasional Indonesia Indonesian National Army UDKP Unit Daerah Kerja Pembangunan Development Planning Meeting on sub-

district level UNDP - United Nations Development Program USAID - United States Agency for International

Development USDRP - Urban Sector Development and Reform

Project (WB) WB - World Bank

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A. INTRODUCTION

Project Rationale

Initiatives for Local Governance Reform (ILGR) focuses on governance reforms linked to poverty alleviation. The project builds on the success and lessons learned from on-going community driven development (CDD) initiatives, and the results of on-going analytical work on decentralization. The project supports institutionalization of democratization and poverty reduction at local level.

It also aims to pilot mechanisms to reward reform-minded local governments that are willing to develop local, participatory poverty alleviation initiatives based on citizen choice. ILGR will reinforce these efforts but will not try to address all aspects of governance, or replicate activities carried out by others. The focuses of reform are in the areas of transparency and participation, public procurement and financial management. In addition to the foundation of reforms in term of local regulatory framework and concrete initiatives, ILGR also supports reforms in project management and implementation through provision of funds for public investment in infrastructure development identified in local Poverty Reduction Strategy and Action Plans (PRSAP).

Project activities in the field have been on-going since October 2002. The first 9 months of preparation was supported by a PHRD (Government of Japan) grant. The DfID Trust Fund took over support of these activities in the second quarter of 2003. The project was appraised in February 2004 and negotiations were planned for March 2004. However, negotiations were stalled due to issues on the regulatory framework that did not support on-granting of funds to poor local governments.

Report Structure

This report was formulated to show the progress ILGR has made during the past two years. The report structure is as follows: at first, the Grant Objective is briefly presented, followed by a detailed reporting of impacts, outcomes, outputs and activities/processes, structured by component and completed with a chapter on the ILGR facilitation strategy. This rich information is complemented by anecdotal evidence and testimony, collected in the field by facilitators and consultants. Finally, a section on lessons learned completes this report. The annexes provide proof and detailed information about the impacts, outcomes, outputs and rich experiences collected during the project implementation period. This richness results out of a very stringent facilitation strategy and structure on the ground and at the regional level, combined with expertise provided by ILGR that enables the project to react quickly to developments in the field. This design flexibility and responsiveness to local needs is one of the key design features of ILGR.

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B. ORIGINAL STATEMENT OF GRANT OBJECTIVES

The objective of the grant was to develop a program of pilot projects and analytical activities related to governance reform, pro-poor planning and budgetary reform in 22 pilot Kabupatens1 associated with the ILGR project2. The overall outcome was defined as follows: (a) a better analytical underpinning to the governance environment post decentralization including a base-line of the governance status in a cross-section of Indonesia’s Kabupatens; and (b) piloting of a decentralized PRSP process in 22 Kabupatens, including development of methodology, training materials and draft Perdas, (c) identify political power dynamics during the budgeting process and accountability mechanisms in local parliaments.

1 Initially ILGR facilitated 22 kabupatens. Through continuous monitoring and evaluation, facilitation in 6 kabupatens was discontinued in July 2003. Finally, one kabupaten decided to resign from the program in June 2004 that left 15 kabupatens participating. See detailed explanation under Component 3 (pp 9). 2 Initially the project is named Kabupaten Governance Reform Initiatives Project (KGRIP). The Bank and the Government of Indonesia later agreed to rename it to Initiatives for Local Governance Reform (ILGR).

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C. DETAILED ACTIVITIES, OUTPUTS AND IMPACTS

Component 1. Development of Core Reform Package

Outcomes/Impacts • Local Governance Reform Framework was formulated and has been adopted by the central

government and all participating kabupatens. It outlines priority reforms in three areas: transparency and participation, procurement and financial management. The implementation to date, however, has been focusing on reform activities with regard to transparency and participation. Facilitation, capacity building and technical support for procurement and financial management reforms have been postponed due to a delay in ILGR negotiations. Nevertheless, some local governments have already initiated reforms in procurement aspects by adopting an open tender mechanism as required by Presidential Decree (Keppres) No. 80/2003 on Procurement.

• In accordance with the ILGR approach, which seeks to replicate the reforms initiated in selected pilot kabupatens to other local governments, some initiatives were started and set in motion this replication process. The ILGR’s Local Governance Reform Framework was jointly developed with the World Bank’s USDRP (Urban Sector Development and Reform Project), a similar governance reform project for urban areas. It is planned that the urban project will be implemented in at least 20 cities with a possible expansion in the subsequent phases of the project.

• Another possible strategy for replication includes the adoption of the framework as a requirement for region’s participating in other World Bank sectoral projects, which is inline with the Local Service Platform described in the World Bank’s Country Assistance Strategy (CAS) 2004-2007. It is envisaged that the central government will adopt the framework as a basis for allocating performance-based grants to the regions.

Results/Outputs

The Local Governance Reform Framework defines detailed requirements (including the means of verification as well as monitoring and evaluation) in three areas of reforms: (i) transparency and participation (including development of local PRSAP); (ii) public procurement; and (iii) financial management. The reform activities are divided into four phases: entry, pre-investment, and Year 1 and 2 of investment. (See Annex 1)

Process/Activities

The initial development of a core reform package was financed by a PHRD grant (Government of Japan). Throughout Component 4 of this Grant, the draft reform package was finalized and titled “Local Governance Reform Framework” during the Appraisal Mission of the ILGR Project (January-February 2004).

In March 2004, a “road show” workshop series was held in 3 regions (Makassar, Yogyakarta and Bogor, see Table 1 for detail) to consult all participating local governments and stakeholders (Head of Bappeda, Assistants to the Regional Secretary, Head of Finance Division/Board, Head of Local Government Revenue Agency, Head of Local Government Internal Audit Agency, Local parliament members, and members of poverty and governance working groups) on the

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framework. The National ILGR Secretariat (Bappenas and MoHA) and national consultants facilitated the workshop.

Table 1. Detail Roadshow Implementation in 3 Clusters

Location and Date

of Activity

Participants Conclusions Follow-up

Makassar, March 1-3, 2004

• Bantaeng (8 participants: 4 executive, 1 DPRD, 3 working group members)

• Boalemo (4 participants: 2 executive, 2 working group members)

• Bolaang Mongondow (10 participnats: 7 executive, 1 DPRD, 2 working group members)

• Gowa (15 participants: 12 executive, 1 DPRD, 2 working group members)

• Takalar (10 participants: 7 executive, 1 DPRD, 2 working group members)

• Bulukumba (11 participants: 6 executive, 1 DPRD, 4 working group members)

Yogyakarta March 4-6, 2004

• Lamongan (6 participants: 4 executive, 2 NGOs)

• Ngawi (6 participants: 3 executive, 1 DPRD, 2 working group members)

• Kebumen (10 participants: 8 executive, 2 working group members)

• Magelang (5 participants: all executive) • Bantul (8 participants: 5 executive, 1

DPRD, 2 working group members)

Bogor, March 8-10, 2004

• Solok (8 participants: 5 executive, 1 DPRD, 2 working group members)

• Tanah Datar (11 participants: 7 executive, 2 DPRD, 2 working group members)

• Majalengka (5 participants: 3 executive, 1 academic, 1 working group member)

• Lebak (8 participants: 7 executive, 1 working group member)

• Bandung (15 participants: 9 executive, 3 working group, 3 community representatives)

• The participating kabupatens agreed to implement the proposed Local Governance Reform Framework, with some minor recommendations.

• The use of ILGR investment fund will be decided by each kabupaten. Each region has discretion to use the on-lending and on-granting components of the investment fund based on the types of proposed subproject (cost recovery or not).

• The investment will be used in 2005 after the kabupaten fulfil the pre-investment requirements

• Detailed requirements on local borrowing (such as interest rate, grace period) will be decided by June 2004 by the latest

• Need for further coordination between local government, local stakeholders, kabupaten facilitators and central government to ensure that the investment funds can be disbursed on time.

• Capacity building activities will be managed by the central government.

• National secretariat needs to revise the format of the

• MoU for pre-investment stage

• The Chairman of the ILGR Steering Committee3 issued a letter on March 26, 2004 to adopt the framework after accommodating various inputs from local governments (timeframe etc.)

• In the period between April and June 2004, each participating local government formally adopted the framework in a Memorandum of Understanding (MoU) signed by the Bupati and Chairperson of DPRD.

Component 2. Governance Studies

A donor program intervention that focuses on governance and development management to reduce poverty is relatively new, ILGR is a pioneer. There is a need to have a good database and rational evaluation on governance issues and this should be done by creating a data baseline, series of studies and thorough documentation of the progress and impact of governance reforms. There are also several fundamental questions that are important to answer such as what is the key entry point for reform, the basic conditionalities and which reforms are more effective for poverty reduction and serving the public interest. Therefore, a structured series of studies, documentation and evaluations become very important.

3 Deputy Chairperson of Bappenas on Local Autonomy and Regional Development.

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Component 2.a. Governance and Decentralization Baseline Study

Results/Outputs

A database of household perceptions on local governance conditions in 177 kabupatens and kotas was established through a national Governance and Decentralization Survey, GDS conducted in 2002. This enables reform progress to be measured by local stakeholders and ordinary citizens against a baseline. The results from the survey are encouraging. Some 89 percent of households believe education and health services have improved or remained the same after decentralization compared to before decentralization. On average, only 6 percent of households believed education services have deteriorated and 3 percent that health services have deteriorated after decentralization. Even in the regions that performed worse according to the GDS survey, only one-third believed that services have deteriorated (see Figure 1).

Figure 1. Household Perception of Service Quality in Education and Health Services

0

10

20

30

40

50

60

Worse Equal Better

%

Education Health

Note: percent of households that perceives services to be worse/same/better than before decentralization Source: Governance and Decentralization Survey 1.

It is striking that a large majority of households believe that the level of “cuts”, illegal levies and bribes are more or less the same as before decentralization. This is in contrast with the headlines in the newspapers, which suggests that corruption has been on the increase since decentralization. However, the notion on corruption might differ between households and businesses, which are most likely more affected by illegal levies and bribes than household respondents.

There is a widespread perception that there is considerable corruption in the regions, and it appears to be systemic: money politics at the political level, corruption in core government operations such as recruitment, and government procurement, as well as petty corruption in service delivery level are common perceptions.

The results for districts participating in the preparation phase of ILGR so far are relatively encouraging. On average, they seem to have a more active civil society, higher level of citizen’s participation and political awareness (see Figure 2 below), and quite reform-minded governments, confirming the initial selection criteria. Overall however, transparency was still rated low and corruption perceived as high in all districts, both ILGR and non-ILGR.

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Figure 2. Level of Citizen Participation and Political Awareness

Figure 1: Level of Participation(range 0-100)

05

101520253035404550

Ban

tul (

5)Ku

lon

Pro

go (6

)M

agel

ang

(18)

Boal

emo

(19)

Gor

onta

lo (2

0)K

ebum

en (2

5)La

mon

gan

(28)

Bol

aang

Tana

Tor

aja

(41)

Nga

wi (

64)

Sol

ok (7

2)S

idoa

rjo (7

5)M

ajal

engk

a (7

6)B

anta

eng

(86)

Leba

k (9

1)Ta

kala

r (11

5)Pe

sisi

r Sel

atan

(120

)B

andu

ng (1

28)

Gow

a (1

40)

Tana

h D

atar

(158

)B

uluk

umba

(164

)In

dram

ayu

(165

)

Index of Citizen ParticipationKGRIP AveNational Ave

Figure 2: Are you following the information on these various election? (percent of HH respondents)

86%

39%

55%

55%

49%

89%

43%

58%

63%

68%

0% 20% 40% 60% 80% 100%

President/Vice President

Provincial Governor

Head of District

Head of Village

Village Representative

National Ave KGRIP A Ave

Source: GDS 1 Survey Source: GDS 1 Survey

The result of recently completed GDS 1+ survey (financed by a Dutch trust fund) showed that the two ILGR kabupatens that were included in the survey (Bulukumba and Bantaeng), were amongst the best performing kabupatens (see Figure 3). Compared to other (non-ILGR) kabupatens, the two ILGR districts are consistently perceived to have better public services after decentralization in the four areas surveyed (health, education, administrative and police services).

Figure 3. Household Perception of Some Services in the Last Two Years (2003-2004)

0%

20%

40%

60%

80%

100%Health

Education

Administrative

Police

Improved ServicesNon-ILGR

Improved ServicesILGR

Source: GDS 1+ Survey

Process/Activities

The Governance and Decentralization Survey (GDS) was conducted by the Center for Public and Policy Studies (CPPS), Gadjah Mada University, Yogyakarta, from April to June 2002. The GDS is

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mainly a quantitative survey that provides basic household perceptions on corruption; transparency in budgeting, project procedures, and government audit; public service delivery in education, health, and administrative services (including: licensing procedures, and services in government offices). The GDS 1 was implemented in 177 districts (48.9 percent of all Indonesian districts existing at that time), including 60 that were listed as potential sites for ILGR. In total, almost 17,000 people were interviewed by 18 field teams, using 12 structured questionnaires for different groups of respondents. GDS results were not known when the final selection was made on kabupatens participating in the ILGR, hence the results from the GDS were not used as selection criteria.

However, GDS 1 results are used as baseline information to monitor the progress of governance reforms within and beyond ILGR districts and can be used as a reference for the selection of districts for future scaling-up of the program. To improve the reliability of findings and make the results more objective, the original GDS survey was refined. A smaller survey, GDS 1+, was implemented in a subset of the GDS 1 sample (not financed by this TF). From the 177 kabupatens and kotas that were included in the first study, only 32 kabupatens/kotas were surveyed in GDS 1+, including 2 kabupatens participating in ILGR, Bantaeng and Bulukumba.

Component 2.b. Diagnostic Study on the Kabupaten Reform Process

Results/Outputs

Based on the report, available in draft from, there were several initial findings that include: • District leadership matters. Support the Bupati as the top executive is essential. However,

change agents among the mid-level bureaucrats who are responsible to prepare the draft regulations and the budget are also important. These are the people that can push or stall the reforms.

• Outsiders can help drive reforms. The role of external agents is crucial, especially in places where civil society is weak or fragmented. They provide facilitation, information, technical support, link to external resources and act as a catalyst and bridge between the local government and local civil society. These external agents are mostly NGOs and donor-supported facilitators.

• Competition promotes innovation among regions. Key politicians and civil servants want and need recognition for successful reform initiatives. The reputation can help them to become re-elected or be known as enlightened leadership.

• Nascent reforms require support to have real impacts. External agents should be aware about the on-going reform initiatives and “latch on” to them. The purpose is double-fold. First, piggy-backing on their initiatives will create a high level of ownership. Second, providing facilitation, technical support and local level capacity building will deepen the initiatives’ impact which helps build the momentum for more reforms and acts as a counter balance to those opposing reforms.

Recommendations from the study include the following: • External governance reform projects should allocate sufficient time to assess and map the

“drivers of change” through stakeholder consultations and meetings with key groups. • Continuous “on the ground facilitation” is a crucial support at a time of “transition” when

civil society and local government is weak and good governance practices are new. • Dissemination of the reform initiatives at different levels, regional as well as national, serves

as an incentive as well as providing opportunities for cross learning which will strengthen the reform movement in the locality.

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• Governance projects need to give time and support to local reform initiatives, which will create a greater sense of ownership and willingness to move forward with institutionalization.

Process/Activities

The Kabupaten Reform Dynamics Study was conducted in three ILGR districts, namely Solok, Bandung and Kebumen. The main objective of the study was to provide a diagnostic for understanding the incentives for districts to reform. In each district two reform initiatives were studied—the participatory planning mechanism and the village block grant, which gives more autonomy to villages. The fieldwork lasted for three weeks with a one-week break in between, from mid February to mid March 2004, with nine researchers (three in each site) and one coordinator. The field teams interviewed and had discussions with more than 90 people, including the Bupati and other government officials, private sector, NGOs, village leaders and community. The interviews, supported by relevant documents, were the main source of data for the analysis and recommendations.

Component 2.c. Study on Accountability Mechanism

Results/Outputs

The study is still being implemented at the moment, and, hence, there are no results available yet. However, the preparatory phase of the study has identified the following issues related to local budgeting for further research: • DPRD members need practical and applicable capacity building so they can supervise the

budgeting process: The newly elected DPRD have more capacity, relative to the member of parliaments during the previous period. However, their interest in and knowledge about the budget and budget process is still low.

• Long and mid term strategies lack of vision and are not translated into government action: Local governments outsource the production of strategy documents. The contracted parties do not prepare long term projections of key indicators and they propose strategies that lack vision and local government ownership. Consequently, the link between long-term strategy and the annual budget is often weak.

• Current bottom-up planning is not effective: Almost all participants in the bottom-up planning are government officials. The projects proposed through the system are not linked to the overall strategy for the district. According to initial estimates only 20% of the district resources are used for projects proposed through the elaborate bottom-up process. This leaves participants in the process frustrated and ignored.

• Key actors and decisions in the budget process remain unclear because current budgeting practice lacks transparency: Information from interviews and document studied shows that the process is contradictory to the budgeting process as per the national regulations. At this stage it seems that the executive and the bureaucracy team up to control the budget process. Public control, directly or through parliament, is difficult because the process and related documents are unnecessary complicated and often not available to the public. DPRD could have better control over the budget if they would know the process better.

• Decisions about resource allocations are often influenced by opportunities for personal gain: Complicated networks of local power relations erode the independence and effectiveness of institutions responsible for control. Contractors will seek alliances with powerful actors to obtain contracts. The misallocation of more than one third of the value of public contracts is common. As a result, the quality of all public works is poor.

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Process/Activities

The objective of the study is to document the dynamics that shape the local government decision-making and to identify options to improve accountability. The study is conducted in three ILGR kabupatens: Lebak (Banten), Magelang (Central Java) and Takalar (South Sulawesi). In each kabupaten 3 observers coordinated by 1 researcher were hired to follow key government actors and their interlocutors while they are performing their key functions.

The study will document four essential government processes: (i) legislative election; (ii) budget process; (iii) accountability process; and (iv) legislative process. The first legislative elections were observed from March 1 to April 10, 2004. The preparatory work on the budgeting process was done in June 1 to July 31, 2004. Both activities have been financed by other sources of funds. Since the study will provide input and feedback to ILGR implementation, the DfID Trust Fund has been supporting the documentation of the budget process since October 2004.

Component 3. Piloting Decentralized Participatory Poverty Assessment

The facilitation process of governance reform (particularly the formulation of local regulations –Perda on transparency and participation) and development of kabupaten poverty reduction strategy and action plans (PRSAPs) started in October 2002 by mobilizing kabupaten facilitators (F-Kabs) in 22 kabupatens participating in the ILGR preparation phase4. Between April-May 2003, all kabupatens were evaluated and the central government decided to discontinue direct facilitation in 6 kabupatens, i.e., Pesisir Selatan (West Sumatera), Indramayu (West Java), Kulonprogo (Yogyakarta), Sidoarjo (East Java), Gorontalo (Gorontalo Province), and Tana Toraja (South Sulawesi). There were specific reason for not continuing the facilitation in each kabupaten, but mainly due to lack of support from local stakeholders and some inconsistencies regarding principles of good governance promoted by the project. In June 2003, one kabupaten, Bantaeng (South Sulawesi) decided to discontinue its participation in the program.

In the remaining 15 kabupatens, local governments (executive and legislative members) and representative of civil society and community groups continued formulating local regulations that ensure public access to information (transparency), access to decision-making processes (participation), as well as the PRSAPs, facilitated by the F-Kabs.

Component 3.a Participatory Poverty Assessment

Though Indonesia’s macro policy on poverty alleviation has had significant success in the past, the uniform central driven macro intervention has been based on a uniform perception of poverty reduction. At present, in a more decentralized environment, poverty reduction should strongly involve local governments, even though they have limited experience in focusing local development strategies to reduce poverty. The local government’s understanding is often coloured by misunderstandings originating from the previous intervention, such as social safety nets that focus on welfare handouts of cash or rice to those identified as poor or micro credit given without looking at the structural problems of the micro businesses. Participatory poverty assessments give opportunities for kabupaten stakeholders in identifying and discussing root causes of poverty together with poor communities themselves. Then, local multi-stakeholders working group formulates the strategies and action plans based on the identified poverty problems.

4 The facilitation from October 2002 to June 2003 was financed by PHRD grant (TF no. 050931 – GoI executed).

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Outcomes/Impacts

Although distracted by postponement of the ILGR investment to 2006, most of the kabupatens started using the PRSAPs as one of the references for budget formulation in fiscal year 2005 (see Table 2). The implementation, however, is still mostly limited to “matching” the technical agencies (dinases) programs with the action plans of the PRSAP’s (see box). Nevertheless, this activity has opened up the process of sectoral programming with civil society and community representatives.

Another impact of the activities is that various stakeholders that were involved in the PRSAP formulation in ILGR kabupatens have become resource persons in several workshops that were held to support development of decentralized poverty reduction strategies. Poverty Working Groups from Kabupaten Gowa and Kebumen presented their experiences in regional workshops held by Poverty Alleviation Committed (KPK) in Kupang and Bogor. CIDA invited local government officials from Kabupaten Bulukumba to share their experiences during a workshop in Makassar. Meanwhile, resource persons from Solok, Magelang and Bulukumba presented their experiences in the above mentioned poverty workshop in Bali.

In addition, PRSAP training modules have been developed, based on the local conditions and the experience from the pilot kabupaten. The training modules will shortly be published (around 500 copies). Quick dissemination of the “ILGR approach” was achieved through the support of ILGR trained stakeholders to other districts and provinces and presentations of experiences in national and regional-level workshops.

Box 1. Integration of PRSAP To the Annual Planning Process in Ngawi

Several sector agencies related to poverty issues were involved in the PRSAP formulation in Kabupaten Ngawi. This ensured that the activities proposed in the annual kabupaten planning meeting (Rakorbang) were based on the PRSAP.

To strengthen the integration process, the Bupati has issued a Decree stating that all line agencies should use the PRSAP as a planning guideline and Bappeda should also integrate the PRSAP into the planning documents.

This result of the Rakorbang was based on the PRSAP. The result then is handed over to the line-agencies to allow them to prepare the working units budget proposal (RASK).

(Source: F-Kab Ngawi Report, October 2004)

This clearly shows that the ILGR PRSAP formulation has had multiple level impacts on various stakeholders. Direct beneficiaries are not only the poor, whose proposals were included in the poverty reduction strategy, but also the line agencies benefited from the PRSAP formulation as they received inputs for their sector programming.

Box 2. Linking the PRSAP To the Annual Planning Process in Bolemo

The Boalemo PRSAP integration process was conducted through a forum called “Review of Draft APBD 2005”. This forum was chaired by the Students Association in cooperation with Bappeda. The main purpose of this forum was to review whether the projects/programs in the draft APBD match with community proposals. (Source: F-Kab Boalemo Report, November 2004)

At the national level, UNDP and the National Poverty Alleviation Commission (KPK) will adopt the PRSAP formulation model for their 20 kabupatens. These institutions also heavily benefited from ILGR’s facilitation and process that made the model easily replicable in other regions.

Results/Outputs

Most of the PRSAPs formulated in the 15 ILGR kabupaten were finalized in mid 2004 and up to November 2004 eight kabupatens have legalized the strategy through a Bupati Decree (see Table 2 below for detail).

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Table 2. Progress of the PRSAP Formulation Process as of November 2004

Kab

upat

en

Clu

ster

Wor

king

Gro

up

Esta

blis

hmen

t

Prel

imin

ary

Ana

lysi

s

Com

mun

ity

Ass

essm

ent

Stra

tegy

Fo

rmul

atio

n

Act

ion

Plan

Fo

rmul

atio

n

Exec

utiv

e La

galiz

atio

n

Ann

ual P

lann

ing

Ref

eren

ce

Tanah DatarSolokLebak

BandungMajalengka

KebumenMagelang

BantulNgawi

LamonganBolmongBoalemo

GowaTakalar

Bulukumba

Legends: Completed In progress

A

B

F

C

E

Although the other 7 kabupatens have not yet legalized their PRSAPs, most PRSAPs have been integrated in the annual planning process. Table 3 below describes the PRSAP follow-up action in each kabupaten.

Table 3. PRSAP Status and Its Follow-up Action

No Kabupaten PRSAP Legalization PRSAP Follow-up Action

For PRSAP that has been Formally Legalized

1 Solok Bupati Decree on PRSAP is issued in September 2004

Some dinases have adopted the action plan in PRSAP into their budget 2005 proposals; some others are still trying to match their proposals with PRSAP proposals.

2 Magelang Bupati Decree No. 22/ 2004 on PRSAP

PRSAP has been used as a guideline in preparing AKU (general policy directive), which will be a basis for planning and budgeting for 2005. The recently developed Renstra is also based on PRSAP.

3 Ngawi Bupati Decree on PRSAP is issued in November 2004

PRSAP has been adopted in AKU (general policy directive)

4 Bolaang Mongondow

Bupati Decree No. 168a/2004 On PRSAP is issued in November 2004

PRSAP has been integrated in AKU, Repetada and 2005 Strategy, which were formulated by Bappeda.

5 Boalemo Bupati Decree No. 170a/2004 on PRSAP is issued in September 2004

A ‘Review Draft APBD 2005’ forum can be regarded as a tool in integrating PRSAP to kabupaten budget.

6 Gowa Bupati Decree No: 128/IV/2004 on PRSAP is issued in May 2004

Regional Secretary has issued a letter on July 2004 to all working-unit, which related to the PRSAP to make PRSAP as a main guideline in preparing RASK (working-unit budget plan) for APBD 2005-2007.

7 Takalar Bupati Decree No. 341/2004 on PRSAP

Some activities in PRSAP have been integrated into Repetada (Local Annual Development Plan) 2005

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No Kabupaten PRSAP Legalization PRSAP Follow-up Action

8 Bulukumba Bupati Decree on PRSAP is issued in September 2004

Some dinases (i.e., health and education) have adopted the action plan in PRSAP into their budget 2005 proposals, some others are still trying to match their proposals with PRSAP proposals.

For PRSAP that not yet Legalized 1 Tanah Datar Not yet legalized 2 Lebak Not yet legalized Some action plans in PRSAP is integrated in dinas proposal, DSP

(Priority and Strategy List), and AKU (General Policy Directive). 3 Bandung Not yet legalized PRSAP has been integrated into AKU (General Policy Directive). 4 Majalengka Not yet legalized Basic Policy of PRSAP has been integrated into Renstrada 2003-

2008 5 Kebumen Not yet legalized 6 Bantul Not yet legalized Draft PRSAP has been adopted in annual planning process including

in Rakorbang (held on June-July 2004), formulating AKU (General Policy Directive) and in LPJ Bupati

7 Lamongan Not yet legalized PRSAP has been integrated into AKU (General Policy Directive) and become a guideline in annual planning process.

The poverty working group has been involved in the drafting of the strategy, after various members (government officials, civil society and parliament members) were trained in developing a poverty strategy through participatory processes. In most cases, this was the first exposure of the executive and legislative members to a participatory process in developing kabupaten-level policy. Their feedback has been very positive. They were able to capture many issues the poor face, and they have a better ownership of the strategies developed.

However, the quality of the PRSAP varies from one region to the other, although most local stakeholders still consider it as a relatively well-developed mid-term strategy, despite some weaknesses. In quite some cases, the strategies developed were mainly based on the results of community assessments, without adequate analysis to link them with kabupaten-level policies, issues, and targets. Furthermore, most of the strategies were not adequately linked to national level targets and requirements such as the Millennium Development Goals (MDGs) and minimum service standards.

In some kabupatens, consistency from the findings of the assessment, analysis, strategies and action plans were not well maintained. There is also a tendency that the strategy and action plans are very broad which makes monitoring the implementation of the PRSAP difficult.

The following emerging poverty issues were identified in the PRSAP’s: • More equitable land control. In some areas of West Sumatra, many of the poor are ‘migrants’

and do not have access to land which is controlled by traditional leaders, based on customary laws. In Ngawi (East Java) poor communities have no access to work on state-forest land. The strategy is for the government to facilitate discussions and to create a partnership among stakeholders (state-owned company, villagers and the local government).

• Access to education. Increasing costs (including transportation, uniforms and textbooks) contribute to the increase of drop-out rates, such as in Bulukumba and Gowa. The proposed strategies include scholarships and provision of textbooks for poor children.

• Support to small businesses. In Bandung informal sector/small business have limited security for their place of business. The spatial planning practices should accommodate their needs and reduce the opportunities for land speculation.

• Better water & sanitation and health services. In Bolaang Mongondow (North Sulawesi) poor women cannot afford birth control devices which leads to poor health. The strategy proposes the government to provide subsidized birth control. In both Bolaang Mongondow

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and Ngawi, one of the main causes of poor health is the lack of water and sanitation facilities. The Government should provide the facilities.

• Environment. Lack of access to clean water has become an important issue in all kabupatens. The strategies to overcome this problem vary, including the establishment of a Perda on water management and a Perda on water protection, re-forestation programs etc.

• Transportation. Poor road conditions, particularly off Java, have been identified as one impediment for the poor to gain access to education and health services, as well as to the market and other public services. Construction and rehabilitation of rural roads have been proposed in Gowa, Bulukumba, Bolaang Mongondow, Takalar, Boalemo and Magelang

• Alternative Financial Intermediation for Credit. Lack of access to credit institutions, especially for poor families, combined with the lack of skills to improve small businesses, has lead to increased poverty. The alternative solution is to simplify the loan mechanism and intensify support for the informal sector/small businesses.

Process/Activities

At the national level, three consultants (poverty facilitators) responsible for developing manuals and training materials, facilitating trainings and workshops, monitoring and backstopping of field level activities were hired as well as one consultant responsible for documenting good (and bad) practices in developing PRSAP. The “poverty consultants” have been working together with the ILGR core team, as well as the national KPK and ILGR’s GoI counterpart, to develop: (i) training materials on an overall PRSAP formulation framework, preliminary poverty analysis and public consultation; (ii) training materials on participatory poverty assessment (PPA); (iii) manuals on findings analysis and formulation of PRSAP. Based on the three deliverables, the team is preparing a comprehensive local PRSAP formulation manual.

The first training was conducted between February-March 2003 in 5 regions (clusters of kabupatens) to train local poverty working groups on the overall PRSAP framework, preliminary poverty analysis, and public consultation (see Table 4 below).

Table 4. Capacity Building Activities in PRSAP Formulation

Activity Participants Location and time of activity Feedback Follow-up / output

Cluster A: Padang, Feb 27-Mar 01, 2003 Cluster B: Puncak, Feb 24-26, 2003 Cluster C: Yogyakarta, Feb 24-26, 2003 Cluster E: Gorontalo, Mar 05-08, 2003

First PPA training

135 participants (23 female) from technical agencies, Bappeda, DPRD members, NGOs, local universities, farmers organizations, women organization, etc.

Cluster F: Makassar, Feb 26-28, 2003

Focus of the first PPA training was on the kabupaten poverty analysis and clustering which was used at sites for data gathering. In summary, the feedback from the participants was as follows: 83% of the participants stated that the training given is in line with their expectation, 11 % stated that training was not in line with their expectation, and 5 % of the participants do not give any answer. Participants’ reasons why their expectation is not achieved because, as follows: 1) the substance discussed is incomplete; 2) still confused with the framework whether they are expected to do poverty analysis, to facilitate, or to do both, and 3) there is no clear concept for each kabupaten.

To follow up the training, F-kab in each kabupaten was responsible to facilitate the participants in poverty analysis in their kabupaten. Technical assistance was provided by the Secretariat. As a result, each kabupaten has a descriptive analysis concerning poverty in their kabupaten and is able to determine poverty clusters that will be used to gather data from the community.

Second PPA

152 participants (42 female) from

Cluster A: Solok, Apr 28-Mar 03, 2003

The second PPA training was to introduce pentagon livelihood as a framework in

Participants then disseminated the

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Cluster B: Lembang, Apr 21-26, 2003 Cluster C: Yogyakarta, Apr 21-26, 2003 Cluster C: Yogyakarta, Apr 28-Mar 03, 2003 Cluster C: Magelang, May 05-10, 2003 Cluster E: Manado, Apr 28-Mar 03, 2003

training local government officials, DPRD members, NGOs and CBOs (poverty working group members)

gathering the data and to practice some PRA tools that were used in the data gathering at the community level. PRA tools are including: (i) village mapping; (ii) welfare classification; (iii) poverty causal diagram; (iv) venn diagram; (v) livelihood analysis; (vi) trend diagram; (vii) seasonal calendar; (viii) gender analysis; (ix) ranking of poverty problem.

technique of using PRA tools to their colleagues who did not attend the training before working in the sites.

Cluster F: Makassar, Apr 16-20, 2003

As a matter of fact, experience of the participants in using PRA tools is lacking, particularly executive and legislative members. They stated that PRA tool is useful for them. A member of legislative from Ngawi expressed, “The tools enable me to get a real opinion of the community“. While one participant from the Family Planning Office stated that PPA tools can be directly implemented to overcome problems of pre-welfare families.

Primary data from designated communities was collected. This data will be used for developing a poverty reduction strategy in the kabupaten.

Cluster A: Padang, Aug 4-6, 2003 Cluster B: Bandung, Jul 28-30, 2003 Cluster C: Sarangan, Aug 05-07, 2003 Cluster C: Yogyakarta, Aug 11-13, 2003 Cluster C: Kebumen, Aug 18-20, 2003 Cluster C: Lamongan, Aug 25-27, 2003 Cluster E: Tilamuta, Aug 21-23, 2003

First PRSAP formulat-ion work-shop

175 working groups members were involved in the PRSAP formulation workshop (26 percent of them were women) GOI, DPRD, NGOs

Cluster F: Makassar, Aug 27-29, 2003

Members of working group were dissatisfied with the method of formulating the PRSAP. The steps were unclear and this generated confusion among members of the working group in cluster B. More than that, a member of the poverty working group in Kebumen stated, “If National Secretariat is not ready with the method; we will use our own method to develop the PRSAP!”

Member of working group gave recommendation to the National Secretariat to revise the PRSAP formulation method.

Solok, Oct 20-22, 2003 Tanah Datar, Nov 4-6, 2003 Lebak, Oct 24-26, 2003 Bandung, Oct 29-31, 2003 Majalengka, Oct 15-17, 2003 Kebumen, Oct 13-15, 2003 Magelang, Feb 9, 2004 Bantul, Oct 21-23, 2003 Ngawi, Oct 09-11, 2003

Second PRSAP formulat-ion workshop

Average participants involved in the workshop in each kabupaten were 25 persons or almost 325 persons in all kabupaten (10 percent of them are women). GOI, DPRD, NGOs

Lamongan, Nov 3 -4, 2003

Revised method is clearly understood. A member of the poverty working group in Kebumen who previously expressed his dissatisfaction admits, “This method is better and workable”. After the workshop, each poverty working group continued to finish developing the kabupaten’s poverty reduction strategies. Finalization of PRSAP is still taking place up to October 2004. In doing the finalization, the working groups conduct public consultations at the community level and the kabupaten level in order to verify the community issues and also to disseminate the developed strategies. Example of public expression is presented in a different box. The long process in developing the PRSAP has caused some fatigue among members of the poverty working group. “Being a member of poverty working group is like a fish entering a net. Once you get in, you cannot find the way out!”.

In general, almost all kabupatens have finished developing appropriate poverty reduction strategies by June 2004. The PRSAP documents 8 kabupatens have been legalized using Bupati Decree. This decree assures that PRSAP will be used as a reference in establishing annual development plans.

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Gowa, Oct 9-11, 2003 Takalar, Oct 23-25, 2003 Bulukumba, Oct 27-29, 2003 Boalemo, Oct 16-18, 2003 Bolmong, Oct 13-15, 2003

As a result, some members of working group are no longer active in the working group. The survivors continue working to finalize the PRSAP and have it approved by the Bupati.

Box 3. Public Consultation at the Community Level In Bantul

Saturday morning (Dec. 13, 2003) in Gading Harjo village, Bantul, it was raining. The pendapa (auditorium) of Gading Harjo Village, the place where the public consultation was being held, was still quiet. The F-Kab looked a little bit worried. He spoke timorously:

“This rain may delay participants from two other villages (i.e. Parangtritis Village - about 15 km away and Poncosari Village – about 7 km) to come to Gading Harjo village”. But that was not so because in fact participants started coming to the pendapa regardless of the rain. The public consultation started when two third of the expected participants i.e, poor villagers (men and women), community informal leaders, Village Heads, and several members of Village Representative Council, were present.

One of the big discussions was on the issue of sumbangan (gift). According to the data collected from the poor, the custom to give sumbangan is one cause for poverty. Nonetheless, a leading figure of informal leaders refused to believe this data. He said, “That was not true because giving sumbangan is our custom inherited from our ancestors”. This opinion received some support from other participants.

However, a woman who wore jarik batik (clothes made of batik) and simple kebaya (traditional javanese shirt) disagreed with the informal leader’s opinion. From her seat at the back row, she spoke, “For the rich people, to give sumbangan is not really a problem. But for me, to give sumbangan is quite a burden”.

Having two different opinions, members of the poverty working group who chaired the meeting asked whether data about sumbangan as a cause of poverty should be deleted or not. All participants finally agreed that data should not be deleted.

The working groups –with the assistance of the F-Kabs– organized a consultation on the framework of poverty analysis with wider stakeholders in each kabupaten and prepared a preliminary poverty analysis. This was also presented to kabupaten stakeholders. The quantitative part of the analysis covers a comparative analysis of kabupaten poverty data with national and provincial level data (using National Socio-economic Survey –Susenas– data), geographic distribution of the poor, coverage of health and education services, access to infrastructure, markets and government offices. The qualitative part of the analysis identifies a preliminary hypothesis of poverty causes for each typology of the poor, which is also verified in the community assessment. The analysis also concludes the clusters of poverty typology in the regions where the community assessment are held.

On average, it took 5 days to conduct the community assessment at the cluster level using 9 PRA tools (participatory rapid appraisal). There were 3-4 location clusters in each kabupaten where the appraisals were facilitated. All kabupatens carried out the assessment between June-August 2003 and the communities were very keen to participate. The result of the community assessment was then used as feedback to the previous preliminary analysis.

A national-level workshop was held in Jakarta on June 18-20, 2003 to develop a model for PRSAP formulation (“model building workshop”). The workshop was attended by 20 participants including the national secretariat, regional coordinators (KRs), the national KPK and Bantaeng’s working group members5. It was agreed that the strategy should consist of policy/regulatory

5 Results of PPA in Bantaeng (South Sulawesi) were used as a model in this workshop.

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framework, investment (“development”) and public services improvements. Although the strategy will only cover activities that are within the kabupaten authority and responsibility, recommendations to provincial and central governments were included. At this point, the kabupaten PRSAPs should be linked to the national PRSP. Based on the results of the workshop, the first draft of PRSAP formulation manual was developed by the National Secretariat.

Local stakeholders were facilitated to implement the manual through series of regional workshops between July-August 2003 (see Table 4). The regional workshops were held in 10 batches due to different level of progress among kabupatens (only kabupatens that had already conducted the PPAs were eligible to participate). The kabupaten working groups started to analyze the findings from community assessments (“micro data”), collected more data – in addition to the preliminary poverty analysis– for more comprehensive “macro level analysis”, trying to formulate strategies to address these issues, conducted a series of public consultations (either through large inclusive meetings at the kabupaten level or through small group discussions).

Based on the findings of the poverty facilitators, who backstopped the process in the field, another national-level workshop was held in Bogor on September 10-13, 2003 to learn from the PRSAP formulation process so far, to refine the steps of PRSAP formulation and to develop a more detailed strategy formulation manual. About 20 participants from National Secretariat, National KPK, World Bank consultants, regional coordinators and F-Kab Ngawi (the kabupaten data/ information was used as a model) were participating in the workshop. Based on the discussions during the workshop, the poverty facilitators and the national ILGR secretariat developed a manual on results, analysis and formulation of the PRSAP. The revised manual was used in series of kabupaten-level workshops between October-November 2003 (see Table 4).

The kabupatens then formulated ‘kabupaten-level poverty problem statements’ and prepared strategies to address the problems. For these activities, the poverty facilitators have intensively backstopped each kabupaten by providing direct technical support to the working group and other stakeholders. The draft strategies were then consulted with local stakeholders, both at the community level (where the field assessments were held) and at the kabupaten level. Furthermore, the strategies were detailed into kabupaten action plans.

In May 2004, all draft PRSAPs were reviewed by the ILGR National Secretariat to assess consistency of analysis and level of details of the strategies and action plans. The results of the review were sent to each kabupaten to allow them to make necessary improvements.

These reviews have resulted in the following recommendations. Most of the PRSAP’s are still of a general nature. The generality of programs hinders a smooth implementation of this strategy. Currently, the local governments are detailing the PRSAP’s with regard to location, costs etc, facilitated by the F-Kab and backstopped by the ILGR-National Secretariat. This activity will also hopefully ensure the ownership of the strategy and its implementation.

Component 3.b. General Facilitation and Governance Reform

In the more reform-minded kabupaten, there is often sufficient initiative to implement governance reform but synergies are still lacking. Local governments still need encouragement, facilitation and supports for reform. Effective, intensive and continuous facilitation with a clear target is absolutely necessary.

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Outcomes/Impacts

The project does not only require the preparation of the local regulations, but also demands concrete initiatives, particularly on the transparency aspect. For example, a summary of local budgets and the draft local regulation are published in local newspapers, and permit requirements are announced in the related office. In addition, several channels of communications were used to disseminate the program principles of good governance to the public. Local radio and newspaper were the main channels used, through talk shows, press releases or other media coverage.

Box 4. Bajo Village: Government Changes - According to the Poor

Bajo village, among the poorest in Boalemo district, Gorontalo Province, consists of 275 households with approximately one thousand two hundred people living there. Most of the inhabitants are previous sea gypsies who have now resettled with other ethnic groups. These villagers feel that government has changed in the last two years. Agreeing first among themselves to priorities of water supply, education, and health clinic projects, the villagers had representatives submit proposals to the government, some of which some were financed.

Women appear to play an important role in decision making and were among those who explained village priorities, decision making, and contact with local government. Inur Bando of the women's group reported that they were often invited to meetings at sub district and district level, including meetings with the Bupati. Kasman Supu, a resident from this village, has been to the Bupati's house on ten different occasions, wherein a number of the requests made have been met. The Bupati confirmed having met with representatives of this village and seemed very familiar with their situation

Further detailed, Table 5 below shows concrete initiatives implemented in each kabupaten.

Table 5. Concrete Reform Initiatives Implemented by Kabupaten, period January to November 2004

Kabupaten Summary of Kabupaten Budget

Summary of Bupati Accountability Report

Announcement of Availability of Public

Documents Announcement of Permit Procedures

Tanah Datar

APBD 2004 was announced in Tabloid ‘Luhak Nan Tuo’ in January 2004

LPJ 2003 was published in Daily ‘Mimbar Minang’ in May 5, 2004

In local tabloid (Luhak Nan Tuo) in November 2003

Up to now, information on permit requirement (procedures, time, cost, agency to serve) is only for Building Construction Permit (publish in local tabloid, Luhak Nan Tuo, in November 2003)

Solok For the last 2 years, APBD is detailed in local newspaper, Singgalang (cooperation between Pemda and the newspaper)

In local newspaper, Singgalang. (cooperation between Dinas Information and Communication and the newspaper)

In local newspaper, Singgalang.

Through leaflet

Lebak In local newspaper, Radar Banten and Satelit News, in March 2004

- In local newspaper, Harian Banten, in November 2003

-

Bandung Through Kabupaten Bulletin published by BPID (April 2004).

- - Some permit is published in Registrar Office. A Perda on permit procedure is issued.

Kebumen Through a Bandung tabloid that covers Kebumen area (initiated by journalist)

- No announcement in local media yet, but the availability of public documents is disseminated through some formal meetings

Through government website: www.kebumen.go.id

Bantul In local newspaper In local newspaper Through website: www.bantul.go.id

-

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http://www.kebumen.go.id/

http://www.bantul.go.id/


Kabupaten Summary of Kabupaten Budget

Summary of Bupati Accountability Report

Announcement of Availability of Public

Documents Announcement of Permit Procedures

Ngawi In Bulettin Prima.com in February 2004.

- - Through leaflet

Lamongan In local newspaper: Radar Jawa Pos and Suara Lamongan

In local newspaper: Radar Jawa Pos and Suara Lamongan; Through website www.lamongan.go.id

In local newspaper: Radar Jawa Pos and Suara Lamongan, Through website www.lamongan.go.id

Procedures for ID card is publish in local newspaper, Radar Jawa Pos and tabloid Suara Lamongan.

Bolmong Summary of APBD 2004 is disseminated through a Bupati’s letter to kecamatan and village offices (as an attachment) in November 2004. No announcement in local newspaper yet.

- Availability of public documents is disseminated through a Bupati’s letter to kecamatan and village offices (as an attachment) in November 2004.

-

Boalemo Publishment is still initiated by journalist (as a news in local newspaper).

Publishment is still initiated by journalist (as a news in local newspaper).

Through announcement board in related dinases

Through announcement board in related dinases

Gowa In local newspaper, Bawakaraeng Pos and Deteksi (Oktober-November 2004).

- Both in local newspapers (March-April 2004) and related dinases announcement board (i.e. Bappeda)

In local newspaper in December 2003.

Takalar In local newspaper (Himbauan and Bawakaraeng Post) in February 2004

In local newspaper (Himbauan and Bawakaraeng Post) in July 2004

In several local newspapers (Himbauan, Bawakaraeng Post, Corong Rakyat, Tegas) in February-March 2004

In announcement board of related office (SIMTAP office)

Bulukumba In local newspaper (Panrita Lopi)

- In local newspaper In announcement board

In addition to the required initiatives above, some kabupatens have taken some other initiatives as an impact of the program. Some examples: • Formulation of local regulations

entitled “block grant to villages” in Kebumen and Magelang, which requires the allocation of 10% and 5% of the local budget, respectively. The regulations were developed based on the situation that most of the villages were not getting the priorities they identified financed in the annual planning and budgeting process.

Box 5. Village Block Grant

Since decades, Indonesia has implemented a bottom-up planning approach, however most of the community proposals were never budgeted. Decentralization has not solved the problem and village proposals are still not realized in the budget. Besides that, the village has its own autonomy and needs financial support, also for village internal affairs. This situation has made local governments think about fiscal decentralization to the village level.

In Magelang for example, the government, after having discussed this issue with community members, including village council (BPD) associations, was motivated to propose the draft perda on village block-grants with a total amount of 5% of the APBD. This grant system was also implemented in Kabupatens Lebak and Kebumen with fund allocation of approx. 10% of the APBD. Fund allocation is based on a certain formula, where the poor population is taken into account.

However, there is still a need to build capacity for the village apparatus and to develop technical guidelines in managing the fund including an accountability mechanism.

• In Kebumen “Good Morning, Bupati” a daily talk-show on radio and television provides a forum for dialogue. The Bupati and her staff respond to Citizens’ complaints and suggestions.

• Solok was nationally recognized for its one-stop service for local permits. In early 2004 all government staff in Solok signed an “integrity pact” to combat corruption. Prior to that the government abolished all ‘extra’

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http://www.lamongan.go.id/


income staff normally receive when involved in specific projects. Instead, the government pools the money and distributes it to all staff as allowances.

• Open and transparent recruitment process in Bulukumba and Boalemo was implemented in early 2004. Local stakeholders were very enthusiastic of the results that can be assessed by any interested parties and a significant reduction of corruption, collusion and nepotism, was achieved, which was the main issue in the past processes.

Box 6. Transparent Civil Servant Recruitment – Boalemo and Bulukumba

Civil servant recruitment is an attractive option for job-seekers, but decentralized civil servant recruitment tends to decrease public trust in local governments because the process is considered to be full of nepotism and bribery.

In 2003, the Bupati in Boalemo initiated a more transparent mechanism in civil servant recruitment, where people were accepted by their own merit (passing competitive exams) not because they paid bribes as often happened before. The answer sheets of the examination were scored openly, witnessed by the public. The result was surprising because there was a senior official’s relative who did not pass. Most of candidates agreed that the process was fair even though they did not pass.

In Bulukumba, the local government facilitated the establishment of an independent team consisting of NGOs and journalists to monitor the evaluation process. There was a proposal discussed during a public meeting to give an additional score for contract staff for to the length of their service with government. This proposal was agreed upon. The selection result was accessible to everyone. Unfortunately, the transparent local recruitment mechanism has stopped now because the central government has taken over the recruitment of civil servants, with the new revisions in the decentralization laws (33 and 34).

• Bandung has opened up the planning process by facilitating more community representatives to discuss their proposals at the district level. The increase of transparency and participation, especially the involvement of civil society in the programming of technical agencies can be regarded as a major achievement, as this process was referred to as a “black box” in the past.

• Implementation of open tender in Boalemo and Bolaang Mongondow in the FY 2004 procurement. Although this was required by the Presidential Decree of 2000, both kabupatens have not (limited, for the case of Bolaang Mongondow) implemented open tender before. The initiative was taken up as an impact of a workshop held by ILGR on procurement, albeit the intention was to conduct a procurement assessment of the regions

Results/Outputs

The 15 ILGR kabupaten have received continuous facilitation and backstopping through F-Kabs, Regional Coordinators and National Secretariat consultants to implement and disseminate good governance principles. Local working group members were trained on the legislation processes. Newly elected DPRD members received training on the principles of good governance. In addition, local stakeholders in various kabupatens were facilitated to identify issues and formulate action plans on participatory budgeting through workshops.

Similar to the Poverty Strategy Formulation Manual, the National Secretariat also developed a manual for the formulation of Perdas on Transparency and Participation. The manual has already been test-piloted in the field and revised according to the local conditions. This tailor-made approach was again made possible through the existing ILGR facilitation structure, taking into account local experiences and reform dynamics. On the spot capacity building measures and technical assistance was also provided to members of the governance working group on how to develop a Perda on Transparency and Participation through a participatory approach.

Among the 15 kabupatens facilitated, 12 of them decided to prepare one local regulation that covers people’s access to information (transparency) and to decision making process (participation). This approach is inline with the recommendation of the ILGR National Secretariat, stressing the efficiency and effectiveness of the institution (e.g. Transparency and Participation Commission can be one executing body). The other 3 kabupatens (Boalemo, Gowa

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and Bulukumba) decided to separate the stipulations on transparency and participation in two separate perdas.

As of October 2004, the draft Perdas in seven kabupatens have been legalized by the DPRD, while others are still being discussed. Table 6 below shows the progress of Perda formulation in the respective kabupatens. Most kabupatens used the Perda on Transparency and Participation from Kota Gorontalo (facilitated by the BUILD program – UNDP) as a model, with some revisions to adapt to local conditions. The same is true for the references. The Perda on transparency is relatively detailed while the Perda on participation needs a more detailed regulation.

Regarding the institution that will endorse the Perda, two models have been adopted. Several regions (Solok, Lebak, Gowa, Boalemo) will establish Transparency Commissions where civil society will be members. The Commission will have the authority to mediate the implementation of transparency and participation. On the contrary, Magelang, Kebumen and Bandung will utilize the existing monitoring and evaluation bodies to endorse the implementation of the Perda.

Table 6. Progress of Formulation of Perda on Transparency and Participation, as of November 2004

Kab

upat

en

Clu

ster

Perd

a

Wor

king

Gro

up

Esta

blis

hmen

t

Aca

dem

ic P

aper

Fo

rmul

atio

n

Dra

ft Fo

rmul

atio

n

Exec

utiv

e A

ppro

val

Legi

slat

ive

App

rova

l

Tanah Datar T&PSolok T&P PassedLebak T&P Passed

Bandung T&P PassedMajalengka T&P

Kebumen T&P PassedMagelang T&P Passed

Bantul T&PNgawi T&P

Lamongan T&PT PassedP Passed

Bolmong T&PT PassedP Passed

Takalar T&PTP

Legend: Completed

In progress

C

A

B

E

F

Boalemo

Gowa

Bulukumba

For kabupaten that have been legalized the Perda, the follow-up action is described in Table 7. below.

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Table 7. Perda on Transparency and Participation and Its Follow-up Action

No Kabupaten Perda Follow-up 1 Solok Perda No. 5/2004 on Transparency of

Governance Implementation and Public Participation (issued on April 29, 2004)

Bupati Decree No. 335/Bup-2004 on Appointment of a Selection Team for Selecting Transparency and Participation Committee. The team consist of 6 members

2 Lebak Perda No. 6/2004 on Participation and Transparency on Governance Implementation and Development Management (issued on June 1, 2004)

A technical guideline to implement the perda is being prepared now through serial discussion, both in internal working group and with other stakeholders outside working group (dinases, community organizations, DPRD, etc).

3 Bandung Perda No. 6/2004 on Transparency and Participation in Governance Implementation (issued August 20, 2004).

Kabupaten provides budget to develop guideline and for dissemination cost

4 Magelang Perda No. 10/2004 on Public Consultation Mechanism (issued March 15, 2004)

-

5 Kebumen Perda No. 53/2004 on Public Participation in Governance Implementation (issued June 2004)

The implementation of the perda will be coordinated by Information/ Communication Agency and Electronic Data Center.

Perda No. 3/2004 on Transparency in Governance Implementation.

6 Gowa

Perda No. 4/2004 on Public Participation in Governance Implementation

A workshop was held in November 30, 2004 to formulate action plan of the perda

Perda No. 6/2004 on Public Transparency in Governance Implementation (issued August 24, 2004)

7 Boalemo

Perda No. 7/2004 on Public Participation in Governance Implementation (issued August 24, 2004)

Bupati has issued a Bupati’s instruction No. 14/2004 on Transparency on Public Service in Governance Implementation (issued on February 9, 2004)

Some key features in the Perda on Transparency and Participation are as follows: • Citizens have the right to examine, obtain, use, and disseminate public information. • The government must (i) actively disseminate specific kind of information, e.g., development

plans; budget documents; spatial plans; agreements made by government and third parties; and (ii) provide access to other unclassified information.3

• Meetings of local parliament and local government to discuss public matters are open to the public.

• A Transparency Commission will be established to monitor overall the implementation. Members of the commission are selected by the local parliament from a short-list proposed by citizens.

• The public has the right to participate in the formulation of development plans (annual plan, mid-term plan, spatial plan), district budget and local regulations, in monitoring and evaluating policy/project implementation.

• Sanctions for violations are dealt with administratively.

However, so far the Perdas on Participation and Transparency have not yet been widely disseminated to all existing government agencies in the respective kabupatens. Therefore, dissemination and implementation workshops must be conducted to ensure overall application of the transparency and participation principles.

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Process/Activities

This sub-component (TF no. 052572) was managed and administered by the Government of Indonesia (GoI) to continue direct support at kabupaten level previously and financed by a PHRD Grant (Sep 2002-Jun 2003). However, due to lengthy administrative processes, the government’s budget documents were not ready until the beginning of 2004. To avoid disruption of the activities, based on GoI’s request, the World Bank directly financed the field activities between Jul-Dec 2003, and the government started the financing for the 2004 facilitation.

Local governments contributed to field level implementation by providing a local project office for F-Kabs and respective assistant as well as providing a counterpart budget. On average, kabupaten provided Rp125 million (about $15,000) in 2003, and ranging between Rp 23 millions to Rp 400 millions in 2004. The budget has been used for public consultation, field assessments, travelling of local government officials and working group members to training/workshops and cross-visits, and operational costs of the working groups.

A consulting firm, PT. Interspasia Mitrapublika, was hired to manage the administrative aspect of facilitation. Each of the kabupaten received a kabupaten facilitator (F-Kab) who is coordinated by a regional coordinator (KR) in a cluster of 5-6 kabupatens.

In the field, in addition to the development of the PRSAP mentioned under Component 3.a above, the F-Kabs also supported another working group working on the formulation of local regulation(s) on public access to information (transparency) and to decision-making process (participation), as well as supporting local governments to take concrete initiatives in disseminating public information.

The process, although was not as well structured as the PRSAP formulation, has a similar implementation framework with the poverty work. The process was started between February-March 2003 by the establishment of a “basic democratization – transparency, participation and accountability (TPA) – working group” (at the same time with the formation of poverty working group)6. The working group then started with the identification of transparency and participation issues, based on a series of discussions/public consultations at kabupaten and “sub-kabupaten” (kecamatan or inter-kecamatan) level. This was followed by the development of an academic paper and draft regulations.

To improve the working group's capacity in formulating draft regulation on transparency and participation, several trainings/workshops on legal drafting were conducted at kabupaten and cluster level, managed by Regional Coordinators (KR) with resource persons from legal assistance bodies (LBH) lecturers from law faculties in local universities. The participants in the training were introduced to some basic knowledge about government policy, local government's role in decentralization, public participation in policy-making, and technical skill on drafting a regulation. Table 8 below describes the trainings/workshops implementation.

Table 8. Legal Drafting Trainings/Workshops

No Participants Location and Time of Activity

Follow-up/Output

1. 24 stakeholders from executive, legislative, T&P working group and NGOs

Gowa March 24-25, 2003

The working group prepared work-plan for drafting the perda.

6 In most kabupatens there are 2 multi-stakeholders working groups established to implement ILGR project preparation – some kabupatens split basic democratization working group into transparency and participation, some kabupatens establish other working groups such as village grant, village governance, etc. The members of the working group are typically local government officials, local parliament members, NGO, CSO, CBO, association of village heads and village representative council, private sector, academicians and the press.

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No Participants Location and Time of Activity

Follow-up/Output

2. Stakeholders from Bantaeng including T&P working group

Bantaeng May 2003

The working group prepared work-plan for drafting the perda.

3. 40 stakeholders from Tanah Datar including executive, NGOs, journalists and academics

Hotel Yoherma, Batusangkar, Kabupaten Tanah Datar August 9, 2003

• DPRD, who was not attended this workshop, should be involved in this activity

• A working group to formulate the draft perda was established

4. 27 stakeholders from Bulukumba

Bulukumba August 12-14, 2003

The working group prepared an academic paper on transparency and participation

5. 25 stakeholders from Takalar

Takalar September 16-18, 2003


6. 17 stakeholders from Bandung including executive, legislative, NGOs and academics

Kabupaten Bandung October 6-8, 2003

A working group to formulate the draft perda was established

7. 30 stakeholders from Bolaang Mongondow including executive, legislative and NGOs.

Bolaang Mongondow October 6-8, 2003


8. F-Kabs and KR cluster C: Lamongan, Ngawi, Bantul, Kebumen, Magelang

Hotel Ibis, Surabaya October 29-30, 2003

• Discussed about the steps in formulating local regulation with some experiences from the field including legal actions that could be taken if problem arises during perda formulation process

• Based on that, F-Kabs developed strategy for formulating the draft perda in each kabupaten.

The local regulation(s) is intended to be an “umbrella regulation” that covers most aspects of governance (including some aspects of local financial management and public procurement). For example, transparency and public participation in medium term planning (strategic and spatial plans), annual planning and budgeting, procurement and project implementation, as well as transparency of audit and accountability reports (See Figure 4).

After the working group prepared the draft regulation, the kabupaten conducted several public consultations, both at the sub-district level and kabupaten level. All kabupatens finalized their draft regulation in March 2004. The executive then submitted the draft to the local parliament (DPRD).

Learning from the experience and after consulting with stakeholders at the national level (Coalition on Law on Transparency, Coalition on Law on Participation, other programs such as BUILD, PERFORM and USDRP), a manual on how to develop local regulation on transparency and participation was developed at the national level.

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Figure 4. Coverage of Local Regulations on Transparency and Participation and Overlaps with Procurement and Financial Management Reforms

Procurement Reform:

• Complaint resolution mechanism (incl. in procurement)

• Preparing and discussing any local regulations in DPRD

Public Access to Decision-

ing Procemak ss (Participation)

• Complaint resolution mechanism and follow-ups

• Procurement policies, procedures, and practices

• Accountability report (LPJ)

Financial Management Reform:

• Planning and budgeting process (mid-term, annual, spatial)

• Audit and follow-

• Budget documents (plan and realization)

• Planning documents (mid-term, annual, spatial)

• Draft and final version of local regulations

• Information on public policy decision in local parliament (DPRD)

Public Access to Information

(Transparency)

Component 4. Inter-kabupaten Networking and Knowledge Transfer

Sharing local experiences on governance initiatives and communicating best practice on reform both within and among kabupatens is crucial in creating synergies and a sustainable body of knowledge. Knowledge sharing will over time increase the quality of the reform process.

Inter-kabupaten Sharing

Outcomes/Impacts

The direct outcome of continuous monitoring and backstopping from the national field coordinator (as well as Poverty Facilitators) is that most of the issues arising during implementation can be identified early or resolved promptly. In addition, the national consultants who visit the kabupatens have played a direct role in sharing information with other kabupatens.

During the national-level workshops, the progress from each kabupaten was visually presented in the venue through graphs and charts as well as discussed during the sessions. It is interesting to observe that the progress in most of the relatively slow-moving kabupatens was significantly accelerated after the workshop.

Results/Outputs

ILGR consultants have assisted the National Secretariat to prepare ILGR monthly reports. In addition, the overall experience during the preparation phase was compiled in an ILGR Phase I

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(Preparation) report, that has been disseminated widely to the national and local stakeholders of the program.

In addition, proceedings and report of each training/workshop as well as “Back to Office Reports” from all consultants are available at the national secretariat and can be shared with other stakeholders for future program implementation.

Process/Activities

At the national level, some consultants were hired to coordinate project implementation in the field, to facilitate knowledge transfer from one kabupaten to another as well as from non-ILGR districts/municipalities, to monitor and backstop field activities, and to document good/bad practices of local governance. Two consultants7 were hired as National Field Coordinators (NFCs) and are responsible to continuously visit the kabupatens and transfer information between kabupatens. The field coordinators are also responsible to backstop “problematic” kabupatens.

The core ILGR preparation consultants have compiled monthly reports from the F-Kabs and KRs and take action where necessary –mostly through the national project secretariat– to follow up on specific issues. For example, provision of references and guidelines, feedback to the process and review of the local governance and poverty reduction strategies.

Internal knowledge transfer has been facilitated through monthly kabupaten-cluster meeting organized by the Regional Coordinators (KRs). All F-Kabs participate in the meeting, as well as the ILGR National Secretariat, NFC and other national-level consultants. Local stakeholders were invited to various meetings to discuss several issues and external resource persons provided training on several aspects, such as financial management, community organizing, etc.

A national forum on ILGR kabupaten experience sharing was held in December 2003 (jointly financed by GoI and this TF), which was attended by 87 participants. In this workshop, the Bupatis, local legislative body (DRPD) speakers, and local counterparts were able to share their experience in promoting good governance and preparing the PRSAP. The participants of the workshop concluded that: (i) local governments are committed to implement reform and the investment funds were not the primary objective of the reform; (ii) National Government needs to have better coordination with donors who implement similar programs; (iii) it is necessary to review ILGR reform requirements, especially the timetable to implement reform and to acknowledge other governance initiatives that have been implemented by the kabupaten; and (iv) local stakeholders capacity to implement the reforms needs to be improved and the project implementation has to be more flexible.

The ILGR program co-hosted a workshop to share experience on poverty reduction initiatives in August 2004 in Bali. Several aspects of poverty reduction efforts were discussed in the workshop: (i) formulation of local poverty reduction strategies and action plans; (ii) strengthening of participatory approaches in the mid term and annual planning process; (iii) improving the quality of public services. About 160 participants attended the workshop, around 100 of which were from local governments (Bupatis, Local Government Secretaries, Head of Bappeda, district-level KPK), while the others were from central government (Bappenas, MoHA, MoF, National KPK), , donors (the World Bank, DfID, CIDA, GTZ, USAID), NGOs and the press.

The participants of the workshop formulated various recommendations to the central government, donor agencies, and local government. Among others, two important recommendations to central government and donors were: (i) to develop effective coordinating

7 Starting in July 2003, there has only been one NFC working for the project.

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mechanisms which enable the central government to synchronize and harmonize efforts for the purpose of poverty reduction in terms of policies, approaches, and methodology of program implementation; (ii) to facilitate local governments in exchanging their experience on governance reform and efforts to reduce poverty. This recommendation was meant to develop a forum for building local capacity and to give fresh input to the central government as it develops initiatives and policies. Two important recommendations for local governments were: (i) local government needs to formulate PRSAPs as part of their Local Strategic Plans (Renstrada); and (ii) local governance and administrative reforms are an essential part to solve the problem of poverty.

GoI held another national workshop in October 2004 to consult ILGR’s alternative design and program activities for 2005. The workshop was attended by about 80 participants, including Bupatis, local legislative (DPRD) speakers and local counterparts from participating districts, as well as the ILGR National Secretariat (Bappenas, MoHA and MoF). Although it was not the primary intention of the workshop, some experience sharing took place. Local governments expressed their disappointment in the delays in investment, since they have been working very hard to implement reforms and interacting with civil society. However, they are still committed to continue implementing reforms, but require central government to ensure that implementation plans are not further postponed.

Other conclusions of this workshop were: (i) Local Governance Reform Framework, agreed upon in March 2004, will continue to be a guideline for the districts to implement reforms and local governments need capacity building to implement these reforms; (ii) kabupatens will provide counterpart funds for 2005 and the National Secretariat needs to indicate “supply driven” activities in 2005; (iii) The National Secretariat will evaluate program performance and progress in each kabupaten; (iv) Local Governments think that channeling loan/grants to APBD is good practice to increase ownership of the local executive and legislative; and (v) Central Government is required to make necessary revisions to the conflicting regulations based on the new laws on regional autonomy.

Capacity Building for Newly Elected District Parliaments (DPRD)

Outcomes/Impacts

This activity has just started in late September 2004, which makes it difficult to assess the impact of this sub-component.

Results/Outputs

A pilot module has been developed for newly elected DPRD members8 to “orient” them on the reform process that has taken place in the kabupatens. DPRD Gowa was the first group of legislature to receive this training/workshop in September 2004. The training manual was shared and discussed with other institutions that have been implementing similar activities such as UNDP, NDI, IRI and ADKASI. Currently UNDP is taking the lead in harmonizing capacity building activities for local parliaments.

The response from the participants was very positive, mainly due to the participatory nature of the training, but also based on their needs to improve their knowledge (see also Table 9). Most of the participants identified that training in budgeting, accountability systems and legislation as their future needs. Based on the experiences and lessons learned from this workshop, the module has then been revised and was applied in the second workshop held in December 2004 –

8 On average, about 70% of the DPRD members for 2004-2009 term are newly elected.

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jointly held for DPRD members of Kabupatens Takalar and Bulukumba. Subsequently, similar training/workshops will also be implemented for the other kabupatens.

Table 9. DPRD Workshops on Good Governance

No Participants Location and time of activity

Feedback Follow-up/output

1. DPRD members of Kabupaten Gowa, periods 2004-2009 33 DPRD members participated (out of 45); 4 women and 29 men

26-30 September 2004, at Hotel Celebes, Malino, Kabupaten Gowa

• Participant hope to get more examples of good governance practices

• ILGR should develop a concept of good governance to be implemented in district level

• Needs for workshop on legal drafting, annual budgeting, strategic planning and fiscal balance

On Dec 1, 2004, DPRD Gowa studied the Local Regulation on Transparency and Participation, and the result is an agenda for developing the mechanism/ technical procedures to form a Transparency Committee

2 30 DPRD members participated, 15 from DPRD Takalar and 15 from DPRD Bulukumba, all men

3-5 Dec 2004, at Hotel Quality, Makassar

• Needs for workshops on legal drafting and annual budgeting

• Participant from executive should be involved in the workshop

Draft local regulation on transparency and participation will be reviewed in near future (early 2005), and the possibility to legalize the regulation

Some comments from the workshop participants are as follows: • A DPRD member from Gowa –who has been re-elected and who is also the head and owner

of school in Gowa– finds it much easier now to understand the concept of transparency and participation. According to him, many years of experience as a teacher and head of school, he never thought that decision-making should also involve the community.

• Another participant from the Makassar workshop believes that the workshop was very important for DPRD members, and he also mentioned the need for workshops on legal drafting and annual budgeting. He also suggested though that it would be better if the local executive could also be involved in the workshop.

• ILGR Kabupaten Facilitator for Gowa mentioned that the workshop helped to build cooperation with the DPRD and to motivate them to put the Perdas on transparency and participation on their agenda.

Nonetheless, it is necessary that these newly elected DPRD members are not only trained on basic principles of good governance and their role in general, but it is crucial that they also receive technical training on budgeting etc. to fulfil their legislative responsibility.

The coming agenda for DPRD workshops are: • District of Lebak: December 15-17, 2004 in Serang, Banten • District of Boalemo and Bolaang Mongondow: December 20-22, 2004 in Manado

Process/Activities

Interactions with the newly elected DPRD members made clear that there is a great potential for them to become change agents in this very dynamic reform era. However, an intensive capacity building program is necessary to empower the DPRD on its functions (see preliminary finding of Study on Accountability Mechanism, Component 2.c. on pp. 8-9). The objective of this capacity building activity is to increase the newly elected DPRD members understanding of good governance. In the ILGR context, the new DPRD members will have to provide significant support to implement initiatives at the district level.

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The initiative to conduct a capacity building workshop for district parliaments arose at the ILGR National Meeting in Bali in July 2004. It was considered important for ILGR to interact with newly elected DPRD members to support good governance implementation at the district level. Furthermore, by training DPRD members from different kabupatens at the same time, reform synergies could be achieved through exchange of experience and dissemination of good practice.

The recommendation from the Bali meeting then, was followed by discussions in the National Secretariat on how to develop a workshop approach, agenda and materials. It was agreed that the good governance principles be linked with the DPRD’s direct agenda, such as DPRD code of conduct (Tata Tertib DPRD), agenda of Bupati’s accountability report (LPJ Bupati), and legal drafting. The agenda for the workshop is not fixed but leaves space for adjustment, so it will be tailored to the DPRD’s needs and readiness. The district facilitator (F-Kab) would have to discuss the agenda beforehand with the DPRD board to decide when and what kind of workshop should be held. However, the Regional Coordinator will be responsible for implementing the workshop, and the National Secretariat will provide the workshop facilitators.9

Capacity Building for Planning and Budgeting

Outcomes/Impacts

As yet, there are no significant outcomes/impacts from the participatory planning and budgeting workshops. It is expected that local level planning and budgeting mechanism will be significantly improved in 2005 (FY 2006 budgeting process)

Results/Outputs

Another aspect of capacity building required by the kabupaten is participatory budgeting. This workshop is implemented based on the needs identified by local stakeholders to improve the process, and to align with the Perda on transparency and participation (see Table 10 below). From the program management perspective, the training is important to ensure that basic principles of participatory planning and budgeting mechanism (as required by ILGR) will start to be implemented in the regular budgeting process in 2005. The workshop was piloted in Tanah Datar and Solok (West Sumatra) and then covered all kabupatens in Sulawesi. Again, the response from local stakeholders involved was positive and they were enthusiastic in developing action plans for each region. The local government of Boalemo has requested further training on fiscal decentralization to the village level.

Table 10. Participatory Planning and Budgeting Workshop

Objective • To discuss with all stakeholders the problem of transparency and participation identified in assessments

• To identify corrective actions needed • To identify policy instruments and techniques to implement those actions • To formulate action plans to implement the recommendations

Method Presentation, brainstorming, and focus discussion

Agenda of the Workshop

• Opening and Introduction of the Participatory Planning and Budgeting Workshop • Speech from Bappenas: Introduction of National Development Planning System (SPPN/UU No.

25/2004) • Introduction to Good Governance and Participatory Budgeting • Presentation from Bappeda: the existing mechanism and summary of assessment results

9 Another option for capacity building of DPRD is to cooperate with independent training providers to conduct this workshop in ILGR’s districts.

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• Kabupaten Discussion: (1) discussing and formulating problem statement from assessment; (2) identifying the corrective action needed; (3) formulating the legal instruments and methods needed to be complement the correction; (4) formulating action plan for implementing recommendations

Output List of corrective actions needed as recommendations; their legal instrument and method; action plan for implementing the recommendation

Follow up Implementing the action plan in each Kabupaten

Location Participants Feedback

Bukit Tinggi (11/7 – 9)

Participants were from Kabupaten Solok (13 persons) and Tanah Datar (14 persons) – all male Participants from each Kabupaten consist of: DPRD, Bapeda, Bagian Keuangan, Dinas Pendidikan, Dinas Kimpraswil, Bagian Pengendalian Pembangunan, Kadin, NGO’s, Wali Nagari, Camat, Kadin, etc Most of participants were persons who participated in the assessment

Makasar (11/26-28)

Participants were from Kabupaten Bulukumba (12 persons) Takalar (14 persons), and Gowa (13 persons) Participants from each Kabupaten consist of: DPRD, Bappeda, some technical agencies, and NGOs. Most of the participants were persons who participated in the assessment

Gorontalo (12/3-5)

Participants were from Kabupaten Boalemo (12 persons) and Bolaang Mongondow (11 persons) Participants from each Kabupaten consist of: DPRD, Bappeda, some technical agencies, and NGOs. Most of the participants were persons who participated in the assessment

• Most of participants felt that the assessment and workshop had given a new knowledge and consciousness to reform their planning and budgeting mechanism.

• Most of them feel that the workshop had been beneficial (the result of evaluation questionnaire showed that about 80% till 99 % of participants feel that workshop was beneficial for them)

• Time for workshop needs to be extended

• The decision makers (Bupati, DPRD, and the Head of line agencies) have to be informed about the result of the workshop. Hence, socialization would be the main agenda after the workshop.

At the end of the workshop, participants were asked to give follow-up action recommendation of the workshop and formulate the action plan that will be implemented in each kabupaten. Kabupaten Solok requested some technical guidance on how to formulate the mid-term planning document that consists of: • Guidance for public consultation • Guidance for disseminating government policies • Requirement to clearly articulate development targets and priorities in strategic policies • Improving the legal status of the PRSAP (Bupati’s Decree becoming Perda). Additionally, the

PRSAP would be integrated as a part of RENSTRA (or RPJMD). The PRSAP would then be disseminated to all line agencies

• There is a need to provide a clear mechanism of “People’s aspiration” in formulating annual development policy (AKU and Strategy and Priority of the APBD). One of the objectives is how to give “public space” for experts and citizen involvement in discussing sectoral issues, policy and priorities etc.

• Program priority and budget ceiling of each sector and kecamatan/village should be decided prior to the planning forum and would be documented in the Budget Strategy and Priority. This document should be disseminated broadly.

• The overall schedule of planning and budgeting processes should be disseminated prior to the process

• To establish the mechanism of citizen participation, especially of those who have technical competence, in discussing and formulating sectoral issues, policies, and priorities.

• To disseminate the result of each planning and budgeting stage with all villages

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Besides that, the action plan to implement the recommendations: • Establishing the team to arrange the drafting of the legal instrument needed to

institutionalize the new mechanism • Multi-stakeholder workshop to consult the compiled draft • Completing and finishing the draft in accordance with the result of the multi-stakeholder

workshop • Ratification of the draft as a Bupati’s Decree on Planning and Budgeting Mechanism • Initiating the dissemination of Local Regulation, Government Policy, local budget, etc related

to planning and budgeting.

Process/Activity

The ILGR-National Secretariat has urged local governments to formulate a Poverty Reduction Strategy and Action Plan, and to pass Perdas on Transparency and Participation. To implement this reform agenda into daily government operations, Kabupatens need more technical and detailed legal instruments and methods. The workshop on participatory planning and budgeting is one aspect of facilitation provided by the National Secretariat to build stakeholder’s capacity in enhancing the implementation of those above mentioned interlinked reform issues.

The planning and budgeting mechanism and process of local governments has not changed significantly from those implemented in the New Order Regime. The only significant change has been the transformation from line-item budgeting to performance budgeting. But in that transformation, the public hasn’t yet had any significant influence on planning and budgeting processes and its implementation.

The workshop with all key stakeholders on the planning and budgeting processes has the following objectives: (i) identify the weaknesses of the existing mechanism on transparency and participation practices in each Kabupaten; (ii) identify, discuss and formulate the corrective action needed in the form of legal instruments and methods to address these weaknesses; (iii) formulate an action plan on how to proceed with the recommendations. The workshop format included presentations followed by brainstorming and focus group discussion.

To reach the above-mentioned objectives, two steps were taken: (i) pre-workshop self-assessment aimed to achieve the first objective, and (ii) workshop aimed to achieve the 2nd and 3rd objectives. Self-assessment used a gap analysis instrument to compare the existing mechanism with the expected mechanism, formulated by the National Secretariat.

After the assessment, the National Secretariat conducted a workshop to identify, discuss, and formulate some recommendations of the corrective action needed to address the weaknesses and plan an action strategy to proceed with these recommendations. As of December 2004, 3 workshops were held, covering 7 Kabupatens (see Table 10).

A Self-Assessment instrument was formulated as a checklist to assess whether the planning and budgeting mechanism and processes in local governments had met the principle and practice such as (i) clear articulation of target and priority in the strategic and annual development policy; (ii) Allocation of resources in accordance with strategic priorities both in mid term and annual planning; (iii) Mechanism of public involvement in the planning and budgeting process; (iv) dissemination and accessibility of Government’s policies needed as input in those process.

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Table 11. Pre-Workshop Self-Assessment

Activity Pre-Workshop Self Assessment

Objective • To identify the existing mechanism of planning and budgeting in Solok and Tanah Datar • To identify the problems or gap between expected mechanism and the existing mechanism

Method Focus Group Discussion with key stakeholders of planning and budgeting processes using Self Assessment Tool formulated by the National Secretariat

Output List of Gaps/Problems of transparency and participation in each Kabupaten’s Planning and Budgeting Mechanism

Follow up Workshop aimed to identify: (1) Corrective action needed ; (2) Legal Instrument and method to support the identified corrective actions ; (3) action plan for succeeding workshop recommendations

Location Participants Feedback

Tanah Datar (08/28)

11 persons (2 female): Bappeda, Finance Unit, General Administration, Public Works, Health Agency, Education Agency, Village Empowerment Office, NGOs, Nagari Chairman, Chamber of Commerce

Solok (08/29) 15 person (3 female): Bappeda, Finance Unit, General Administration, Public Works, Health Agency, Education Agency, Village Empowerment Office, NGOs

Bantul (10/06) 20 persons (all male): Bapeda, Dinas PU, Dinas Pendidikan, Dinas Kesehatan, BAKD, Kantor Pemberdayaan Masyarakat, Camat, Kepala Desa, NGOs, Bagian Infokom, Bagian Keuangan, etc

Bulukumba (10/11)

20 persons (all male): Bapeda, Dinas PU, Dinas Pendidikan, Dinas Kesehatan, BAKD, Kantor Pemberdayaan Masyarakat, Camat, Kepala Desa, NGOs, Bagian Infokom, Bagian Keuangan, etc

Takalar (10/12) 30 persons (all male): DPRD, Bapeda, Dinas PU, Dinas Pendidikan, Dinas Kesehatan, BAKD, Kantor Pemberdayaan Masyarakat, Camat, Kepala Desa, NGOs, Bagian Infokom, Bagian Keuangan.

Gowa (10/13) 23 persons (male): DPRD, Bapeda, Dinas PU, Dinas Pendidikan, Dinas Kesehatan, BAKD, Kantor Pemberdayaan Masyarakat, Camat, Kepala Desa, NGOs, Bagian Infokom, Bagian Keuangan.

Boalemo (11/02) at Hall of Pemkab Boalemo

21 persons (2 female): DPRD, Bapeda, Dinas PU, Dinas Pendidikan, Dinas Kesehatan, BAKD, Kantor Pemberdayaan Masyarakat, Camat, Kepala Desa, NGOs, Bagian Infokom, Bagian Keuangan.

Bolaang Mongondow (11/02) at Hall of Pemkab Bolaang Mongondow

15 persons (1 female): DPRD, Bapeda, Dinas PU, Dinas Pendidikan, Dinas Kesehatan, BAKD, Kantor Pemberdayaan Masyarakat, Camat, Kepala Desa, NGOs, Bagian Keuangan, Bagian Infokom.

In the opening session, almost all kabupatens represented by Bapeda or Sekda said that assessment was a good precondition for workshop. They said that there has been no meaningful change in the planning mechanism. All Kabupatens hoped that the series of activities from assessment to workshop would be a starting point to make important changes in planning and budgeting processes toward more transparent, participative and accountable one. Some Kabupatens had same perception that the only meaningful change had been in budgeting processes such as the obligation to implement performance budgeting (Kepmendagri No. 29/2004).

Several issues were raised in the self-assessment: (i) RENSTRA (Local development strategic policy) and AKU (annual budget policy) are generally weak in articulating a clear target and priority. This has led to difficulties in formulating a consistent annual budget priority and to use the document as a tool for accountability; (ii) the bottom up planning processes is conducted prior to policy formulation. This has also contributed to the difficulties in integrating the proposals originating from bottom up planning and proposals originating from policy driven activities; (iii) Musbangdes (planning forum at village level) to some degree has involved people. But, in the next stage (UDKP, Rakorbang) the people who are invited to the forum is limited and selected by the local government. Meanwhile, the budgeting process is totally inaccessible; (iv) Schedule, place and agenda of discussion in planning and budgeting processes has never been socialized broadly. This has led to an exclusion of individual citizens and their right to participate.

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Project Preparation Activities

Outcomes/Impacts

Though project negotiation was delayed, all of the above mentioned assessments, framework and manuals have met the “Project Readiness Filter” set by the Government.

Results/Outputs

The consultants, in collaboration with the ILGR National Secretariat, have developed: • Environmental and Social Safeguard Assessment report, and a Safeguard Framework; • Regional Financial Management Assessment report; • Regional Procurement Assessment report; and • The full set of draft project operation manuals that cover: general guidelines, kabupaten-level

information dissemination and initial assessment, public meeting and establishment of working groups, formulation of PRSAP, project planning and decision making process, institutionalization of transparency and participation, and project procurement and financial management, procurement and financial management reforms, and monitoring and evaluation)

Process/Activities

This component was also used to conduct several studies/assessments. First, environmental and social safeguard assessments were conducted between June-July 2003. Two consultants were hired to do a detailed assessment in 3 kabupatens to learn about current practices, public awareness and institutional capacity of local governments to ensure the future project investment will not have negative impacts to the environment and vulnerable people (any displacement will be fairly treated and there is no bias against indigenous people and other marginalized groups). Based on the results of the assessment an environmental and social safeguard framework was prepared.

Second, a procurement consultant was hired to assess local-level procurement practice and capacity of local institutions in managing procurement. In addition, a draft procurement reform package was discussed with local stakeholders. The consultant visited all 16 kabupatens participating in project preparation between July-October 2003. This assessment concluded that procurement risks varied among kabupatens. Most of the kabupatens in Java (except Lebak in Banten province) are relatively “better” than outer Java kabupatens (medium risk), while kabupatens in South Sulawesi and Lebak have high procurement risk and two northern Sulawesi kabupatens have very high risk.

Third, World Bank staff and consultants, working in collaboration with GoI officials, have conducted a regional financial management assessment in September 2003. Four kabupatens were selected as samples, and visited. The focus of the assessment was to learn the practice and capacity of the local governments to implement a financial management reform package. Based on the assessment the package has been revised.

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D. FACILITATION STRATEGY

The job description of a kabupaten’ Facilitator can be summarized in a very simple sentence: “to facilitate stakeholders in the kabupatens set governance reform programs in motion.” This includes:

• bridging between the ILGR-National Secretariat and the local government and sharing knowledge;

• organizing meetings, e.g. for various stakeholders;

• initiating community forums;

• assisting multi-stakeholder forums.

Box 7. Social Inclusion in Gowa

Public Consultation of the Poverty Reduction Strategy and Action Plan was held in Gowa district South Sulawesi. The meeting was attended by 151 participants including government staff, NGOs, universities, and the poor from different assessment location. Also 30% of participants were women. In the group discussion sessions, the poor explained their problems and experience and answered some of the participants’ question. One poor man stated: “This is my first time attending a meeting at the district level. I am seldom invited to a meeting even at the village level”

In practice, this “facilitation” can encompass a whole range of activities from the more substantive tasks of creating and sustaining a forum for multi-stakeholders involved in the reform process; building a consensus among various stakeholders with varieties of political inclinations and interests; providing technical support on the substance of the reform issues; coaching and building the capacity of the newly emerging civil society groups; to menial tasks such as preparing meeting venues, or reminding the local parliamentarians not to miss an important session to ratify the Perda on Transparency.

As many studies have shown, the governance conditions in most Indonesian kabupatens are far from ideal, the concomitant culture and systems required to make public services and public servants more responsive are still lacking. On the other hand, communities have limited voice in the government process and community groups do not have an effective forum to channel their participation. Although ILGR kabupatens were selected based on their reform mindedness, they are not completely void from these general tendencies. In many of these kabupatens, an arena for public participation is still lacking, while capacity is low both within the government and civil society. In this kind of environment, an external agent such as ILGR’s facilitator can act as a catalyst to transform emerging reform initiatives, which in many cases are still in an embryonic stage, into concrete, sustainable and institutionalized reform actions.

A lot has been achieved by the ILGR facilitation. Starting with the initiation of multi-stakeholder working groups based on specific issues, such as transparency and poverty strategy formulation to creating platforms for non government stakeholders involvement in reform processes (see also box on social inclusion). These working groups function as a vanguard for the institutionalization of reform processes, such as the formulation of Poverty Reduction Strategy and Action Plan, monitoring their integration into local government budgets, and preparing the draft perda on Transparency and Participation and its action plan. It is expected that people who are involved in these groups, even though no longer working together as a group, will serve as a critical mass for driving the reform efforts forward in the future.

At this stage, the ILGR facilitator’s role is to provide technical-sometimes also administrative-support for these working groups, facilitate the networking and knowledge sharing with other kabupatens,

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Box 8. Multi-Stakeholder Discussion on Education in Bantul

On January 7, 2004 the F-Kab in Bantul initiated a multi-stakeholder discussion on education. The following stakeholders were involved: Bappeda, Education Sector, Local Education Council, Catholic school board, teacher representatives, chairman of the senior high school students union and members of the poverty working group. The agenda was to discuss issues that arose from the poverty assessment – in this particular case the cost of education that is often not affordable by the poor.

The meeting was dynamic and participants raised various problems.

For example, the chairman of the Local Education Council stated that one of the difficulties for his institution to have a say on education costs is the lack of data regarding education cost per person per month. Responding to this, the representative from the Catholic school board directly offered his data to be used by the Local Education Council. Unfortunately, the follow up action between them was not well monitored; however, this discussion has triggered information sharing among stakeholders.

Another debate among participants on the costs of education came to a satisfactory end. Surprisingly, the Head of the Education Agency refused to acknowledge the issue that education was expensive. According to him, the district government of Bantul has allocated more than 20% (national standard for education allocation – author) to support the education process and to provide scholarship to students at every level. The Head of the Agency admitted, “Indeed, the allocation is not solely to for the Education Agency, but it is shared with several other agencies”.

Nonetheless, the chairman of the students union argued that education costs are high. He explained that in his school, poor students are often unable to pay the school fee or buy books. “In this case,” he continued, “teachers usually do not distribute the exam results to force the students to pay the fee”.

This testimony led to all agreeing that the cost of education is high and strategies must be developed to overcome the problem.

and organize capacity building support activities including the ones provided by the ILGR National Secretariat. Sometimes, the ILGR facilitator serves as a link to the external knowledge transmission services, which could benefit the kabupaten, some examples are a gender mainstreaming training in Kebumen, and a seminar on E-Government in Bandung.

In some regions, reform processes were stalled because of local political squabbles between the executive and legislative branch of government, or between government and civil society. In this respect, the facilitator, being an outsider and perceived as free from local political interests, serves as a mediator who opens the dialogue and builds consensus between these groups (see box on diary of ILGR facilitator).

In some kabupatens, the scope of reform actions implemented went beyond the ILGR core reform package. In Kebumen, the facilitation process for multi-stakeholder participation initiated by ILGR made it possible for community groups to consolidate their demand for a village block grant system. This block grant is required to finance village level activities not properly financed under the existing budgetary system. Their demands were finally accommodated, and the perda on the village block grant was passed in 2004. In Bulukumba and Boalemo, the transparency movement set out by ILGR facilitator has persuaded the Kabupaten government to start a transparent civil servant recruitment process. To sum it up, the presence of ILGR and on going facilitation has revived a certain reform momentum in the kabupatens. In a fragile environment where push backs of reforms are always possible, and with many of the reform initiatives still far from being able to demonstrate a concrete benefit, particularly for the government stakeholders, this momentum needs to be properly

maintained.

Viewed from an ILGR management point of view, the presence of a facilitator serves as a transmitter of information regarding developments in the field, including problems and difficulties encountered. This information serves as an important feedback loop for improving project management, particularly since a governance reform project, such as ILGR, requires intensive, management and flexibility in order to successfully achieve its objective.

Last but not least, the Regional Coordinators also have several important roles. They serve as a facilitator for cross-learning activities between kabupatens through the organization of regional

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workshops and meetings. These activities have proven to be beneficial for accelerating the activities in the field. Stories abound about stakeholders who, after returning from regional meetings, learning of other Kabupatens’ advances, become more determined to achieve concrete progress, or about the F-Kab receiving new energy to drive the process forward.

As a management tool, the presence of regional coordinators provides general support to the F-Kabs, increases supervision, monitoring resources and strengthens the span of control by the national project management.

Figure 5. below shows the ILGR facilitation strategy, starting with the ILGR-National Secretariat down to the Kabupaten implementation.

Figure 5. ILGR Facilitation Strategy

Regional Level

National Level

GoI Staff

• Bappenas • MoHA • MoF

WB Consultants

• Planning & Budgeting • Poverty • Capacity Building • FM and Procurement • Field Coordination • General Supports

Regional Coordinators

Kabupaten Facilitators

Technical Supports

Facilitation

Governance Working Group

Poverty Working Group

ILGR Activities

General supervision and backstopping

Preparing manual and/or providing training in:

• General implementation • PRSAP formulation • Legal drafting and

governance • Planning and budgeting • FM reforms • Environment and social

safeguards Facilitating cross-learning among districts

• Local government officials • Local parliament members • Civil society representatives • Community based

organization representatives

National Secretariat

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Box 9. The Count Down To Change: Getting the Transparency And Participation Bills Through the System∗

I started facilitating in ILGR District of Kayuwangi in May 2004, replacing the former facilitator who resigned in April 2004. At that time the district had not passed the Laws on Transparency and Participation (T&P). The two bills were submitted to the DPRD Secretariat in December 2003, and sat there for 5 months.

Building Up Alliances

In other ILGR districts the working groups, which prepared the bills, were the drivers of change. Not so here. I needed a new strategy. I facilitated the formation of an ad hoc team, known as Tim Kecil (small team), to take the role of the working groups. Tim Kecil had 12 members which included some members of working groups whom I thought still had a strong commitment to reforms and were willing to give their time to work on these. The Tim Kecil and I increased our lobbying of DPRD, realizing that their term would end soon in August. However, nothing much happened.

My Guardian Angel Friend

A month went by and no movement on the bills. Tim Kecil slowly lost their enthusiasm. At that time the arrival of my friend Musa was a godsend. Musa was from the National Secretariat in Jakarta. In the discussion we identified some strategies to push the bills forward. Next, I took Musa to see the DPRD Speaker. I said, “Mr Speaker, this is Musa from the National Secretariat. He is visiting districts that have submitted the bills but not yet approved by the DPRD.” Immediately the Speaker responded, “...we already planned to discuss the bills soon and will try to pass them before our term ends.” Slowly, my brain started ticking and seeing light at the end of the tunnel. I would use his answer later on.

Pumping Up the Pressure

Our spirit got a boost when, on July 5, 2004, the Speaker wrote to the Head of the Legal Section (under the Regional Secretariat) to prepare the required materials for the review of the bills. A week later, in a DPRD plenary, the Bupati gave a speech to provide a background to the submission of the bills. The DPRD finally formed a Panitia Musyawarah (“discussion committee”) with 15 members, chaired by the Speaker himself. This was where the real discussion began and our spirit was revived even though by then the DPRD only had 45 days left. The clock was ticking.

The Count Down: Day Five—Inches To Making A History

August 20, 9 am: the chair of Panitia Khusus (“special committee”) opened the plenary session. The agenda was to hear the government’s statement of readiness. Questions were raised. One of them was whether the government had allocated the budget to implement the laws. Assistant I had to call up the Head of the Legal Section and the Bappeda Secretary and asked them to answer the question. They did. The session ended just before the Friday prayer. The government had to revise the statement and sign it. We had only four days left to pass the bills.

The Count Down: Day Four—Shaping Up Lobbies

Usually many government officials went back to the provincial capital on weekends. However, with the celebration activities of the Independence Day, most of them stayed on in Kayuwangi. The Head of the Legal Section and I went to see the Regional Secretary to make sure that the readiness letter would be signed on Monday and sent to DPRD. My other friends worked on the local papers to keep the issue in the news.

The Count Down: Day Three—A Ticket To The Plenary

On August 23 the letter was signed by the Regional Secretary and the Tim Kecil immediately delivered it to DPRD.

The Count Down: Day One—Making History

August 25, 7:30 pm. . This was the first and the last evening session of DPRD for 1999-2004 and had never before occurred in Kayuwangi.

People started to fill the assembly hall: DPRD members, NGO activists, students and officials, and yet by 8 pm there were only 10 members. We were not ready for this. We still needed three more to start the session. I asked the Tim Kecil to go to the DPRD secretariat and ask them to fetch at least 3 members from their home. Meanwhile a couple more people came. The Speaker even started to open the session but adjourned it when he realized we still needed one more to meet the quorum. At 9 pm the secretariat was able to fetch 5 members! Thank God. We started the session with 17 members. The heated discussions in the previous sessions ended up with a reconciliation of the political elites that night. All four factions of the DPRD (Golkar, TNI/Polri, PDI-P and PPP) supported the two bills and the Speaker gavelled to seal this support. Kayuwangi had passed the Laws on Transparency and Participation.

The Night Was Long…

After some small talk, I went home, feeling exhausted but also hopeful. I felt I slowly gained the trust of my Kayuwangi community. Tonight brought a victory to the public to bring changes to the district. I started imagining the changes we could make in the days ahead, but one thing would remain the same: my salary and operational costs would always come late. Well, you need heart that no money can buy, to start reforms.

∗From the diary of Abdurrahman—the ILGR Facilitator in District Kayuwangi. All names here are pseudonyms.

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E. LESSONS LEARNED

Since decentralization measures started to be implemented in Indonesia in 2001, countless reform dynamics have emerged, with wide differences in scope and depth. Many regions have started an open dialogue on the implementation of good governance principles and the improvement of public services delivery. The national government has initiated the formulation of regional PRSP’s, thus shifting policies to a poverty alleviation focus.

These developments indicate that massive changes on political and institutional levels are currently happening in regions all over Indonesia. Many regions have received support from international donor organizations through investment funds, technical assistance and capacity building measures. However, these reform dynamics are still very vulnerable because of political power shifts and struggles (elections of DPRD’s and Bupati’s at the local level for a second time since decentralization).

Nevertheless, despite promising tendencies, one possible implication of these uncertain power structures is that the on-going reform efforts are not yet sustainable – however this momentum of reform initiatives needs to receive support through on-going activities in facilitating local governments and other stakeholders. Continuous, on the ground external facilitation is crucial to keep local stakeholders engaged on the reform agenda, especially at a time of “transition” when civil society and local government is weak and good governance practices are new.

This is where the international donor community in Indonesia can play an important role. Through pulling resources together and learning from each other’s experience, sharing information openly, providing access to existing internal networks, and thus supplementing various on-going technical assistance activities, the international donor community in Indonesia has a great opportunity to support local governance reform in a very efficient and transparent manner. This approach will create synergies and multi-level impact, as tailor-made facilitation is assured at all institutional levels, from the policy-making national level down to the implementation level in the regions.

However, the inconsistent and sometimes contradictory legal framework at the national level often discourages regions to implement sound governance reforms. Moreover, the national level legal system has not yet established an incentive system for reform-minded regions. Moreover, the national level still provides “blanket-frameworks” that do not encourage transparency, participation, efficiency and accountability; in fact, up to date, reform-minded regions often get punished (e.g. DAU-formula does not reward good governance) Here again, the international donor community could play an important role in communicating the importance of governance issues, as measured by indicators such as the investment climate, to the national government.

Feedback has shown that ILGR has contributed significantly to reforms in the participating kabupatens. Not necessarily, must ILGR be the initiator for reforms, but has mostly “jumped” on the departing train, using reform-mindedness as selection criteria for kabupatens. ILGR has created and opened space for discussion, and it seems that a change in the public culture is taking place . It will be necessary to push for the institutionalization of reform and socialize concepts and techniques for implementation. Some examples in the box below demonstrates the dynamics occurring in Kabupaten Boalemo.

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Box 10. Reform Initiatives: Kabupaten Boalemo

A good case to demonstrate the different dynamics on-going in the regions is Kabupaten Boalemo. The Bupati is extremely reform-minded and has initiated major reforms in his kabupaten, as he believes that “Public Action” forces the government to create accountability mechanisms. He tries to implement reforms from several aspects: one the one hand he removes unaccountable government action, on the other hand he encourages the community to demand for improvements of local services. The following concrete steps were introduced by him, underlying his reform-mindedness. - Direct appointment through a single source selection in the procurement process was abandoned. Selection is

now based on a competitive bidding process. - Transparent Public Civil Servant Recruitment was introduced leading to a wider acceptance by the public. - The expenditure for development projects has been increased significantly, now comprising 60% of the overall

budget. One measure amongst others is that the Bupati has cut down massively on allowances and fees, starting with his own. However, this has resulted in massive criticism from neighbouring Bupatis and the Governor.

- Several agencies have already started to reveal its staff’s salaries on public announcement boards. This is a massive boost to transparency of the public sector.

- The Bupati seeks criticism from his own staff, something that would have been impossible in the past. His staff prefers to send SMS to his hand-phone to provide inputs and criticism.

- The government is very responsive to proposals originating from the community. - The Bupati opens his house every morning and afternoon to receive community members. Every individual is

welcome, without prior appointment or pre-selection. Thus, the community can raise any issues any time to their political leader.

- Women cadres in the villages are not only responsible for family planning and mother and children’s health, but also monitor all development projects and the implementation of decisions made by the village head (as part of a Verification team).

- Contractors have to explain to the village community about projects, its scope, costs and possibility of community participation. Thus, the community has the ability to monitor projects that are implemented in their respective villages.

- The contractors must hire local workers. - The block grants provided to villages have increased significantly. This takes enormous pressure of the sector

agencies, resulting in an improvement of sectoral planning, and the agencies deal with much more technical issues.

- A verification team was established to question and analyze the budget. This has already resulted in an improvement in budget allocations.

- The expenditure habits have been made more efficient, resulting in massive budget surpluses (2001- Rp. 1.9 billion; 2002- Rp. 7 billion, 2003 – Rp. 15 billion, 2004-Rp. 16 billion.

- The government conducts expenditure reviews involving multi-stakeholders.

These above mentioned initiatives clearly show the reform-mindedness of the Bupati. However, when asked about the role of ILGR in this reform process, he admitted that ILGR was not the initiator of these reforms, but a major driving force to socialize reform ideas, to involve stakeholders and to provide technical support for reform implementation. Moreover, ILGR plays an important role regarding the institutionalization of governance reforms.

ILGR has been heavily involved in the implementation of local governance reform in various regions across Indonesia. The rich experiences collected in the field are summarized below. These “lessons learned” can significantly contribute to supporting local governance reform projects financed by international donor organizations.

Facilitation

As mentioned above, initiatives usually generate demand for further reforms, but are often unsustainable, because of the lack of technical expertise in the executive and legislative side, but also because of a weak civil society. In the case of ILGR, the permanent presence of the F-Kab’s and the spirit of the program have triggered several additional reform activities, going far beyond the scope of the ILGR governance reform framework. The F-Kabs play a crucial role in safeguarding the process and also serve as backstoppers for various reform initiatives emerging in the region. Through the training received, the F-Kab is able to work with multi-stakeholder groups and guide

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them through reform stages and the process. Pushing reforms through a facilitated multi-stakeholder working group also creates a greater sense of ownership, even though the different capacities of the members have often resulted in variable quality of work. Hence, there clearly is a need for intensive backstopping. However, the multi-stakeholder working groups create a healthy check and balance in pushing as well as monitoring reform progress. Latching on to an ongoing initiative creates a greater sense of ownership and willingness to move forward with institutionalization. External projects can help improve the quality of the activity by providing targeted technical support and information and helping local governments link up with national agencies that can help provide an enabling policy framework for reform.

However, besides all the positive aspects of facilitation provided so far, in retrospect there is a notion that on the ground facilitation has been too focused on developing PRSAP documents and legal frameworks such as perdas on transparency and participation. Practicing concrete reforms or demonstration of reforms has not yet been significantly touched. Using tools like self-assessment practical tools (which are now used for participatory planning & budgeting) from the very beginning for the stakeholders to analyze themselves and prioritize their own agenda, would have resulted in a more focused kabupaten reform program specific to local contexts.

This is an issue for the project’s facilitation strategy, project management –phasing of activities should be emphasized in the future. The existing facilitation structure de-facto requests the F-Kab to provide assistance in all emerging governance reform issues in their respective kabupaten. However, the capacity of the F-Kab’s is also limited, especially when it comes to technical issues. The availability of more adequate quality and quantity of technical resources will be addressed in the future.

The following is a concrete example of how a capacity-building network can be established and its scope in the medium-term: A network of technical regional people in line with ILGR areas could be established, and strengthened. Their services could be used on an ad-hoc basis, and later, these people may become resources that can be accessed by the kabupatens themselves.

This recommendation also mirrors the sentiments in the field that have been captured during the mission’s field visit to the Kabupatens of Lamongan and Boalemo in December 2004. The NGO’s that have so far been involved in the reform agenda have complained that until now, only the local executive and legislative have received capacity-building activities but not the NGO’s themselves. This initiative would provide NGO’s with better access to information and networking, but also would increase transparency of the reform agenda.

This issue definitely needs to be taken up in the future, as not only a well-functioning government is the aim of ILGR; but also a well-engaged civil society and NGO’s.

Box 11. Initial Procurement Reform in Boalemo

One concrete example of the effects of the multi-level structure of ILGR is the procurement reform initiated in Boalemo. A procurement specialist, hired by the National Secretariat conducted an assessment of procurement practices in the kabupaten. The stakeholders however were encouraged by the knowledge-transfer during the assessment workshop, followed by an intensive discussion with all stakeholders on procurement reforms, and initiated in kabupaten Boalemo.

This initiative clearly shows the strong linkages between on the ground facilitation; support and backstopping from national level and the impact governance reforms might have through dynamics that emerge.

Support from the National Level

The support provided to the project by national level institutions, particularly the ILGR-National Secretariat, is closely linked to the facilitation in the field, which has already been discussed above. Issues and problems regarding the implementation of the governance reform framework were jointly identified by the local governments and the ILGR-National Secretariat. The rapid communication and intensive contact between the

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facilitators in the field, regional coordinators and ILGR-National Secretariat have resulted in the provision of on-demand support, available in a flexible manner on a short-notice basis. The support requested mostly addressed technical issues like the formulation of the PRSAP’s, or issues on Perdas. The link between the national level and local level has also resulted in an “elevator” effect-meaning that issues and problems identified at the local level can be easily fed into the policy dialogue at the national level. At the same time, on-going policy-discussions at the national level and its implications for the local level are easily channelled to the local level through the existing ILGR multi-level structure. This enabled the local level to quickly react on developments, particularly regarding changes in the legal framework.

However, the discrepancies of policy interpretation on national level, contradictory legal framework particularly between various departments have also led to confusion at the local level and made consistent policy advice almost impossible.

Reformer Identification and Mapping

As reforms vary in scope, depths and sustainability, an ILGR study was conducted to identify factors that drive local government reforms and suggest was to identify and map reformers. Obviously, since the institutionalization of governance reforms is still rather weak, it is currently mostly individuals who determine the success of reforms rather than institutions. The on-going second round of elections (direct) at the local level will most likely bring new dynamics to local reforms, as the sense of accountability towards constituents will increase. The following aspects were identified as crucial for the successful implementation of local governance reform agendas:

• District leadership matters to push reforms but reform-minded mid-level bureaucrats are also crucial to carry out the necessary operations to support the reform (e.g. draft laws, allocate budgets etc). In the future, sufficient time should be allocated to assess and map the drivers of change through stakeholder consultation and meetings with key groups.

• Dissemination of the reform initiatives at different levels, regional as well as national—hence recognizing the reformers—effectively serves as an incentive as well as provides opportunities for cross learning which will strengthen the reform movement in the locality.

• The new autonomy law has created greater needs to identify champions at the provincial level, mainly for better information dissemination and experience sharing to other kabupatens in one province, as well as to develop capacity at the provincial level.

Besides the importance of identifying reformers, it is also crucial to map these reformers in a systematic manner. Cooperation with these individuals would then result in an improvement of the quality of reform and make reform implementation more effective as the key reform players are already identified and are most likely more open to new reform ideas.

However, so far there is a lack of structural support for local leaders. It is crucial that these reform-minded leaders are given the chance to meet and exchange their ideas, as reports from the field indicate that there is a “thirst for ideas”. This support for local leaders also refers to the recommendation below of inter-kabupaten knowledge transfer.

Accelerating Further Reform

Whatever support is provided to local governments, it is crucial that projects and donors are responsive to initiatives, which will create a greater sense of ownership and willingness to move forward with the institutionalization of these reforms. This step is very important, even though the

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implementation of the enacted local regulations or bupati decrees is another challenge. Otherwise, it is very difficult to implement reforms in the regions without the support of a legal framework, especially if the national framework is non existent or conflicting. This means that external change agents, such as international donors, have to take into account the local environment, including structures, agents, and institutions that influence the change processes. One size does not fit all and sequencing reforms are crucial. Environments that are marked by weak links between the citizens and the state, for example, a stronger focus upon basic education and community organization may be appropriate while in places with stronger institutional ties, civil service reform may be more appropriate to pursue.

Box 11. Public Budget Reviews

It is proven that public involvement in reviewing the APBD improves the quality of the budget.

Bantul for example conducted a review of the 2003 budget, involving NGOs, village council representatives, community organizations and political parties. Based upon the issues discussed and its recommendations, the government improved the following year’s budget. For example, questions were raised why local own revenue increased but also the number of poor people. It was recommended that the government should review the possibility of tax and levies that affect poor people. As a result, in 2004, some of those taxes and levies were reviewed and might be deleted.

A budget review in Ngawi was conducted in 2004 and attended by NGOs, womens groups, village council forum, village level association and other community organizations. Here also issues arose that pushed the local government to improve the current and the next year’s budget. One complaint came from a womens group regarding the plan of increasing local own revenue from Rp.11 billion to Rp.18 billion through repayment of a life-stock program where most of beneficiaries are village women. The group was afraid that the plan might put pressure on village women. Finally, the government agreed to charge only the administrative cost of the program as local revenue.

Another issue was that the Camat had sufficient operational fund suitable enough for them to visit villages on a regular basis, but the Camat always said that he did not have budget to visit the village. The government then decided to improve the monitoring mechanism for the Camat, particularly to ensure the intensity of village visits.

These budget review activities are important to avoid miss-allocation of budget on miss-use through corruption.

The ILGR reform framework suggests a well-designed sequencing of reform steps to ensure that the basic requirements for successful reform implementation are in place (e.g. institutionalisation of transparency and participation) before reforms on procurement and financial management are implemented. The ILGR reform framework stipulates that the formulated PRSAP’s are a major source for budget programming. This step is crucial and needs to be preceded as financial reforms also heavily rely on an accountable budget planning procedure.

Overall, ILGR accelerates reform pressure, also through raising public awareness. An example is the recent launching of the web-page of Lamongan Kabupaten. (www.lamongan.go.id). There, all kinds of information regarding public services is provided, such as open tendering, access to public documents, summaries of the budget policy, accountability report of the Bupati etc. This commitment of the local government to initiate such a transparency mechanism can also be regarded as a result of the ILGR interference.

Inter-kabupaten Knowledge Sharing

Current efforts in Indonesia to implement democratic decentralization are conducted on a trial and error basis at the local level, as consistent support from the national government is lacking. As the results from the GDS survey show the number of reform-minded local governments is growing. However, since the implementation of governance reform cannot be based on national guidance or prior experience, it is crucial for local governments to exchange their experiences among themselves on what initiatives work and why. Determinants for the success, as already mentioned above, are mainly reform-minded individuals and the type of reform pursued. However, different approaches have also lead to different results. As regional autonomy does not really encourage inter-kabupaten interactions, and especially since the role of the province on coordination has been weak over the past, many regions do not know about developments in other regions. Thus, the knowledge-sharing

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http://www.lamongan.go.id/


among kabupaten is crucial to disseminate workable governance implementation tools. As the Diagnostic Study on the kabupaten Reform Process confirms, competition promotes innovation among regions. Key politicians and civil servants, who appear to drive change processes, want and need recognition for successful reform initiatives. Dissemination of their work at different levels, regional as well as national, serves as an incentive as well as provides opportunities for cross learning. Supporting and linking them with one another as well as with non-government reform actors will strengthen the reform movement locally. This again is the kind of support that should be provided by donors, also because they can add value to such an exchange through disseminating lessons learned.

Most likely, direct elections will provide a direct incentive for governance reforms, especially improving public service delivery. Learning from one's peer encourages and convinces districts to initiate reforms. Many potential reformers are searching for practical strategies to jump-start reforms in their localities. Workshops, websites, study tours and other types of information dissemination activities are practical means of sharing information widely among potential reformers.

Lessons learned from the ILGR project preparation has been used as inputs for the preparation of a project operation manual that will be used for project implementation once the loan is effective. The draft operation manuals have been prepared by consultants, together with the National Secretariat, and were shared with other stakeholders (such as national level KPK and other government agencies) in a workshop held jointly with the National Secretariat in January 2004.

Another form of internal knowledge transfer has been facilitated through monthly kabupaten-cluster meeting organized by the Regional Coordinators (KRs), where members from the local executive and legislative are involved. This meeting ensures knowledge-sharing on a regular basis. Through this, the stakeholders are permanently involved in project development that also results in strengthening ownership. Through these meetings, informal visits between kabupaten are also encouraged.

The information management in ILGR itself needs to be improved. Capacity Building activities, and particularly the knowledge transfer and dissemination of experiences in a more-systematic approach need to be implemented in the future. As already mentioned above, various steps have already been undertaken, however not yet in a very systematic and structured way.

Thus, there is a necessity to develop a communication strategy, and how to manage information. There is a richness of experiences of governance reform in Indonesia and efforts should be improved to report these-especially in a qualitative methodology of reporting/evaluation.

Networking with Other Donors

Almost all international donor agencies are actively implementing projects in Indonesia and most of them are supporting local governance reforms in some form. This means that vast experience is collected, documented and lessons are learned. However, the exchange of information and more importantly, the coordination of donor activities in Indonesia could be optimized.

Nevertheless, ILGR has already started important steps to network with other donors. One peak was reached with the Bali Workshop in August 2004, “Sharing of Local Experiences in Mainstreaming Poverty Reduction Efforts” jointly organized by the Bappenas, MoHA, World Bank, DFID, GTZ and US Aid. Recommendations were identified that lead to an improvement in the formulation of the PRSAP’s, enhance the improvement of services for the poor and improve participation during the planning and budgeting process.

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ILGR has also recently started Capacity Building Activities for newly elected DPRD members. Different approaches were discussed with NDI, TAF, Partnership CETRO, and UNDP to learn from their experiences regarding DPRD empowerment.

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F. FINANCIAL REPORTS

Description Amount (USD)

Total Budget 1,333,801Expenses and Commitment Actual: - Consultant Fees and Overhead 687,658 - Travel Expenses 111,132 - Workshop/meeting/training 12,663 - Other Operating Costs 121,682 Commitments 238,093 Total 1,171,229Available Balance 162,572

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List of Annexes

1. Local Governance Reform Framework

2. Example of Summary of Local Regulations in Public Access to Information (Transparency) and to Decision Making Process (Participation)

3. Examples of Poverty Reduction Strategy and Action Plans Profile

4. Examples of ILGR Pre-Investment Monitoring and Evaluation Results

5. Example of Overview of Kabupaten Facilitation Process

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DRAFT

ILGR Local Governance Reform Framework

A. General Requirements

Detailed Requirements Verification to be provided by Kabupaten

(Local Project Mgmt Unit To Send to Project

Secretariat)

Verification by Project Secretariat

Monitoring and Supervision by World Bank

External Monitoring

Entry (Requirements to Participate in ILGR)1

Be located in 9 ILGR provinces2, exclude high-fiscal-capacity kabupatens3

Verify fiscal capacity and certify eligibility of kabupatens in letter to World Bank

Submit a Letter of Agreement addressed to the National Steering Committee signed by Bupati and chairperson of DPRD expressing interest to participate in the program, and a commitment to: (a) implement specific governance reforms (participation, transparency, procurement, financial management) to be undertaken in subsequent phases as Governance Reform Framework; (b) commit to establish the Transparency and Participation, and Poverty Working Groups through public meeting;4 (c) undertake participatory poverty analysis and to institutionalize the poverty reduction strategy and action plan (PRSAP) into the Kabupaten planning and budgeting process; and (d) adopt the Operational Manual, including the participatory planning and budgeting process, safeguards framework5, and appraisal procedures for sub-projects.

Letter of Agreement Compile letters from kabupatens and submit copies to World Bank.

Review to confirm satisfactory in form and substance.

1 For the first batch of kabupatens (16 kabupatens participate in Preparation Phase), these requirements must be available within 3 months after Loan Negotiation. 2 The 9 provinces are: West Sumatera, Banten, West Java, Central Java, DI Yogyakarta, East Java, Gorontalo, North Sulawesi, and South Sulawesi. 3 Fiscal Capacity is according to Ministry of Finance Decree (KMK) No.538/KMK.07/2003 dated December 12, 2003 concerning Fiscal Capacity Map. 4 Only applied to the second batch of kabupatens. 5 Safeguard Framework is including safeguard in social (land acquisition, resettlement and indigenous people) and environmental

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Secretariat)



External Monitoring

Issue a Bupati Decree (SK Bupati) 6 comprising instructions to: (a) establish kabupaten-level project management unit to coordinate project activities; (b) implement the ILGR governance framework as agreed, in form, substance and timing; (c) follow the procedures in the Operational Manual, including the participatory planning and budgeting process, safeguards framework and appraisal procedures for sub-projects; and (d) amend the Bawasda’s annual general audit program to include verification that the procurement and FM reform measures stipulated in the regulations have actually been implemented

Copy of Bupati’s Decree

Submit letter7 to World Bank as certifying that the SK Bupati for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Review letter to confirm satisfactory in form and substance.

Pre-Investment Have no loan arrears, either repay or reschedule Check loan status and certify

eligibility of Kabupatens in letter to World Bank

6 These requirements can be combined and covered in a single SK Bupati as appropriate. To be available within 3 months after Loan Negotiation for the first batch of kabupatens. 7 These verifications can be combined into a single letter as appropriate.

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B. Transparency and Participation Requirements



Secretariat)



External Monitoring


Announcement in mass media of the summaries of budget and Bupati’s accountability speech (LPJ) in mass media.

Proof of announcement in mass media.

Submit letter9 to World Bank as certifying that the proof of the announcement for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Verify announcement in media and quality of summary of budget and Bupati’s accountability speech available.

Announcement in mass media of the availability of the following documents (locations, requirements, time, and the costs to get it): budget, Bupati’s accountability speech, regional strategic plan (Propeda, Renstra), annual plan (Repetada, AKU and Strategies and Priorities), local regulations and spatial plan are available at the designated location(s).7


Submit letter9 to World Bank as certifying that the proof of the announcement for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance. Check, on a sample basis, availability of documents in designated locations.

Review letter to confirm satisfactory in form and substance.

Verify announcement in media. Verify availability of documents.

Pre-Investment Phase Establish Transparency and Participation, and Poverty Working Groups through public meeting within 3 months of entry.8

Documentation verifying establishment of working groups

Review documentation and verify that working groups are established with appropriate composition of membership.

8 Only for second batch of kabupatens.

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Secretariat)



External Monitoring

Announcement in mass media of the procedures, costs, and time needed to get licenses and other services, such as ID cards, birth certificate, business license and building permits at least once a year, as well as being permanently posted at designated locations. This activity will be continued in Investment Phase.

Proof of announcement in mass media

Submit letter to World Bank as condition of eligibility for investment certifying that the proof of the announcement for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance. Check, on a sample basis, availability of posted information in designated locations

Checkannouncement and public posting, and verify procedures, costs and time to obtain licenses and other services

Submission of draft local regulation (perda) on public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to: • Information related to discussion on public policies in

DPRD; • Planning documents (Propeda, Renstra, Repetada, and

spatial plans); • Draft and final documents of all perdas, budget

(APBD) and budget realization reports; • Audit reports and their follow-ups, Bupati’s

accountability reports (LPJ), information on procurement policies, procedures and practices, on complaint resolution mechanism and results (follow-up).

• Copy of draft perda. • Proof of submission of

draft perda to DPRD. • Minutes of public

meetings and attendance list of at least 3 public meetings to discuss the draft.

Review content of draft perdas, summary of public comments and changes made to the drafts as results of inputs from the public. Submit copies of perdas along with letter to World Bank as condition of eligibility for investment certifying that the draft perda for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Review draft perda to confirm satisfactory in form and substance.

Check community involvement and the process of formulating the draft perda.

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Secretariat)



External Monitoring

Submission of draft local regulation (perda) on public access to decision-making process (participation) to DPRD, that contains assurance of: • Public participation in drafting and finalization discussion of

any perda in DPRD, planning documents and budgeting processes (including Propeda, spatial plans, Repetada and APBD);

• Establishment of monitoring and evaluation mechanism of public satisfaction on service delivery;

• Establishment of complaint resolution mechanism (incl. for procurement).

• Copy of draft perda. • Proof of submission of

draft perda to DPRD. • Minutes of meetings

and attendance list of at least 3 public meetings to discuss the draft.

Review content of perda, summary of public comments and changes made to the drafts as results of inputs from the public. Submit letter to World Bank as condition of eligibility for investment certifying that the draft perda for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Finalize PRSAP and prepare draft local regulation (perda) on implementing the PRSAP.

• Copy of PRSAP and draft perda.

• Documentation of PRSAP process (including results of community-level assessment, minutes and attendance lists of public meetings)

Submit letter to World Bank as condition of eligibility for investment certifying that PRSAP and draft perda for each eligible kabupatens are available in the Project Secretariat, and are satisfactory in form and substance.

Review draft perdas to confirm satisfactory in form and substance.

Annual review of poverty strategies and budget planning

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Secretariat)



External Monitoring

Implement enhanced public participation in annual planning and budgeting that covers: • Set budget ceiling as an input for dinas and kecamatan

planning discussions • Allocate block grant to village/kecamatan level. The

information of the allocation and guidelines are disclosed to public.

• Public meetings on dinas programming (at least for 5 poverty priorities sectors)

• Public meetings on inter-dinas programming • Public consultation on final draft of APBD This activity will be continued in Investment Phase.

• Documentation on the process (including budget estimates, minutes of meetings and attendance lists) on current year planning and budgeting process.

• Budget allocation and guidelines of village/kecamatan block grant

• Documentation on changes reflected in final APBD documents reflecting the inputs from the public.

Submit letter to World Bank as condition of eligibility for investment certifying that the planning and budgeting process for each eligible kabupatens is being implemented with enhanced public participation and that documentation of the process are available in the Project Secretariat, and are satisfactory in form and substance.

Review process and output of participatory planning and budgeting process.

Annual review of poverty strategies and budget planning that verifying that the enhanced public participation process is followed, and that the APBD appropriately reflects the content of the discussions.

Investment Phase (Year 1) • Issue local regulation (perda) on access to public

information (transparency) • Issue local regulation (perda) on access to

decision-making process (participation) • Issue local regulation (perda) on implementation of

the PRSAP.

Copies of issued perdas. Review on the changes made to the draft perdas. Submit copies of perdas along with letter to World Bank certifying that the final perdas for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Random review of final perdas on a sample basis to confirm satisfactory in form and substance.

Implementation of perda on access to public information (transparency) by announcing the summary of planning documents (Propeda, Renstra, AKU, Strategies and Priorities) and list of all perdas being issued in the last 1 year in mass media. This activity will be continued in Investment Phase Year 2.


Submit letter to World Bank as condition of continued eligibility for investment certifying for each participating kabupaten that the perda on access to public information and access to decision making are being implemented satisfactorily.


Verify that perda is implemented as reported.

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Secretariat)



External Monitoring

Implementation of perda on access to decision-making process (participation) by at least discussing 50% of the perdas being issued in Year 1 of investment through intensive public consultations

• List of perdas issued in Year 1 (incl. those discussed in public consultations)

• Documentation of public consultation process (incl. minutes of meetings and attendance lists)

Investment Phase (Year 2) Continued implementation of perdas on access to public information (transparency) and access to decision making (participation).

Same as above Same as above Same as above Same as above

C. Financial Management Requirements

Detailed Requirements Verification (Local Project Mgmt Unit To Send to Project

Secretariat)


Monitoring and Supervision by

World Bank

External Monitoring


Issue a Bupati’s Decree (SK Bupati)7 establishing a Financial Management Reforms Committee, with members from key stakeholder departments, and tasked with preparing the detailed reform implementation plan and guiding the implementation of reforms.

Copy of Bupati’s Decree establishing the Committee, and copy of its Terms of Reference.

Submit copies of SK Bupati along with letter8 to World Bank as certifying that the SK Bupati for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Review SK Bupati, membership and TOR to confirm satisfactory in form and substance

Pre-Investment Phase

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Secretariat)



World Bank

External Monitoring

Financial Management Reform Committee to prepare detailed phased implementation plans for the reform measures. These plans will be completed and presented to the Bupati and Project Secretariat within 3 months after the Committee has been established.

Phased action plan with time targets for implementation is submitted to Bupati and Project Secretariat.

Review action plan to confirm satisfactory in form and substance. Submit letter to World Bank as condition of eligibility for investment certifying that the action plan for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.


Provide an appropriate enabling legal framework for financial management reforms, by issuing • A local regulation (perda) on the Principles of

Regional Finance in line with GR 105/2000 and Kepmendagri 29/2002 covering the reform areas to be implemented in Year 1 and 2 of Investment below; and

• a Bupati’s decree (SK) on the policies, systems and procedures for the preparation and execution of the APBD, in accordance with existing central regulations. The SK to also include reform agenda proposed in this project for implementation during the investment period, as stated below.

Issued Perda and SK Bupati with the required coverage

Review form and content of perda and SK Bupati. Submit copies of perdas and SK Bupati along with a letter to World Bank as condition of eligibility for investment certifying that the perda and SK Bupati for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Review perda and SK Bupati to confirm satisfactory in form and substance.

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Secretariat)



World Bank

External Monitoring

Investment Phase (Year 1) Implementation of reform actions proposed will be completed in each investment year in accordance with the SK on FM reforms and the implementation plan prepared by the FM Reforms Committee. 1) Strengthen procedures for authorization of budget expenditure, including • Authorize local government officials to make mid-year revisions in

the budget allocation or budget target line items within certain pre-determined financial limits, similar to the authorities given to central government officials.

• To prevent potential misuse of “contingency budget” (Belanja Tidak Tersangka), specify clear criteria for expenditures that shall be funded from these funds, and the procedures governing the authorization and commitment of such expenditure.

2) Improve financial controls over management of public funds, by • Segregate the functions of the finance department (which shall be

responsible for the issuance of payment instructions (SPM) and the regional treasury (kas Daerah).

• Kas Daerah shall not receive, disburse or hold cash, but only process banking transactions.

• Instruct Bagian Keuangan (Finance Dept) to undertake periodic comprehensive reconciliation of cash accounts covering accounting records, bank statements, official and temporary proof of collections, and actual cash collection.

• To improve checks and balances, do not locate Kas Daerah at the same premises as regional development banks (BPD).

3) Strengthen monitoring and accountability of all public funds generated or received, by ensuring• All regional government bank accounts can be opened only with

authority from the Bupati • Heads of all Work Units shall submit quarterly reports to Finance

Dept & Bupati declaring the name, location, and balances of all bank accounts in the name of the Work Unit or officials thereof.

Verification of compliance with the action plan in undertaking the prescribed reform requirements is done by Bawasda as part of their annual general audit program. Progress and exceptions will reported to FM reform committee and Bupati. The Committee verifies and reports quarterly to National Project Secretariat status of action plan implementation.

Submit letter to World Bank as condition of continued eligibility for investment certifying for each participating kabupaten that the phased action plan for financial management reform is being implemented satisfactorily and in accordance with SK Bupati on reforms.

Post review during supervision.

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Secretariat)



World Bank

External Monitoring

Investment Phase (Year 2) Implementation of reform actions proposed will be completed in each investment year in accordance with the SK on FM reforms and the implementation plan prepared by the FM Reforms Committee. 4) Enhance accountability of Work Unit Heads for compliance with regulations. Require Work Unit Heads to issue annually a Statement of Responsibility to Bupati, with copy to Bawasda, affirming compliance with applicable rules and regulations, and that all revenue collected and donations received are deposited to the authorized Kas Daerah account. 5) Strengthen procedures and systems for revenue collections. • Require all tax/levy payments and other local collections to be

deposited directly by taxpayers to the bank accounts of the local government, except for small payments like parking fees and admission fees to museums, recreation centers etc.

• Adopt use of serially numbered accountable receipt forms for all revenues.

6) Strengthen effectiveness of internal audit function, by requiring that copies of all Bawasda general audit reports are provided to DPRD within 30 days of being issued. 7) Implement greater transparency in local financial management, by requiring completion and publication in local newspapers or websites of summary quarterly financial reports/budget realization reports within 2 months of quarter-end.

Verification of compliance with the action plan in undertaking the prescribed reform requirements is done by Bawasda as part of their annual general audit program . Progress and exceptions will reported to FM reform committee and and Bupati. The Committee verifies and reports quarterly to National Project Secretariat status of action plan implementation.

Submit letter to World Bank certifying for each participating kabupaten that the phased action plan for financial management reform is being implemented satisfactorily and in accordance with SK Bupati on reforms.


Verify availability of documents

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D. Procurement Reform Requirements

Detailed Requirements Verification (Local

Project Mgmt Unit To Send to Project

Secretariat)9

Verification by Project Secretariat10


World Bank

External Monitoring11


Issue an SK Bupati7 on establishment of a work unit as focal point in procurement reform, with the following tasks: • Coordination with LPKPP • Lead and coordinate procurement reform in

kabupaten • Implement trainings on procurement to other

work unit • Oversee, monitor and report procurement

practices • Issue Procurement Bulletin in quarterly basis to

publish information and opportunity in procurement including practices

Copy of Bupati’s Decree establishing the unit, and copy of its Terms of Reference.

Submit copies of SK Bupati along with letter8 to World Bank as certifying that the SK Bupati for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Review SK Bupati, membership and TOR to confirm satisfactory in form and substance

Pre-Investment Take initial step to operationalize procurement focal point by providing supplemental budget for expanded functions.

Copy of annual budget plan.


Issue an SK Bupati7 on the systems and procedures for implementation of the Keppres 80/2003, with special attention to the following: a) Adoption of standard bidding documents for kabupaten procured contracts, regardless of source of funding. b)Establishment of clear and robust mechanism for recording and handling of procurement complaints. c) Enforcement and public disclosure of sanctions relating to procurement deficiencies.

Copy of issued SK Bupati; submit copy of standard bidding documents adopted.

Review SK Bupati to confirm satisfactory in form and substance. Submit letter to World Bank as condition of eligibility for investment certifying that the SK for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.

Procurementsurvey that verifying: • procurement

process is transparent

• adequate complaint handling system in

9 Focal Point to provide to Local Project Management Unit. 10 Dir Keuangan Daerah (with capacity building form Secretariat of LPKPP). 11 Civil society, NGOs, and Secretariat of LPKPP.

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Detailed Requirements Verification (Local Project Mgmt Unit To

Send to Project Secretariat)9



World Bank


Implement provisions of Keppres 80/2003 related to the following: a) Removal of pre-qualification system for small contracts (<RP 50 Billion), and move towards a post qualification system for all contracts b) Public disclosure of results of bid evaluation, name of the winning bidder and contract scope/price.

a) Copy of documents for three major contracts, including records on procurement processing which certify the required practices. b) Documentation of public disclosure of bid awards (e.g., Quarterly Procurement Bulletin including publication of contract awards).

Ex post review on sample basis to confirm implementation satisfactory in form and substance. Submit letter to World Bank as condition of eligibility for investment certifying that the implementation for each of the eligible kabupatens have been confirmed by the Project Secretariat, and have been found satisfactory in form and substance.

place• adequate

disclosure in place

Investment Phase (Year 1) Revise existing perda on kabupaten organizational structure and functions to include new functions of procurement focal point.

Copy of revised perda. Review revised perda to confirm satisfactory in form and substance. Submit letter to World Bank as condition of eligibility for investment certifying that the revised perda for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.


Procurement survey that verifying: • procurement

process is transparent

• adequate complaint handling system in

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World Bank


Monitor and publicly disclose unit rates for major components of civil works contracts, as well as prices for major categories of goods.

Copy of Quarterly Procurement Bulletin with annual update on unit rates and prices.

Review submitted documents to confirm satisfactory in form and substance. Submit letter to World Bank as condition of continued eligibility for investment certifying that the required documentation for each of the eligible kabupatens are available at the Project Secretariat, and are satisfactory in form and substance.


place • adequate

disclosure in place

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World Bank


Implement provisions of Keppres 80/2003 related to the following: a) Removal of the restriction on bidding to bidders registered in the respective district area only, and open the competition to qualified bidders. b) Ensuring that only appropriately trained/certified staff are involved in procurement decision/actions/monitoring, including the Pimpro, members of tender committee, as well as the Bawasda staff involved in procurement audit. c) Ensuring that at least one qualified representative of civil society participates in the bid evaluation process. d) Public disclosure of the following procurement documents: • procurement plans of kabupaten work units; • contract rosters; and • project progress reports for all kabupaten projects e) Conducting and public disclosure of an annual survey on the experience of bidders participating in kabupaten procurement, as well as views and perceptions of civil society about kabupaten procurement practices.

a) Copy of documents for three major contracts, including records on procurement processing which certify the required practices. b) A list of Pimpro, members of tender committee, and Bawasda indicating the relevant procurement training that they have received.12

c) A list of contracts indicating which had a qualified member of civil society participate in the bid evaluation process. d) and e) Copy of Quarterly Procurement Bulletin including results of annual survey and documents requiring public disclosures.


12 Assuming that the national procurement certification system is not yet in place. If the national procurement certification system is in place, this verification will be those who have been certified under the system.

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World Bank


Investment Phase (Year 2) Implement provisions of Keppres 80/2003 related to the following: a) ensuring professionalism of procurement function; and b) efficient and effective handling of complaints

a) List of Pimpro, members of tender committee, and Bawasda staff involved in procurement audit showing that at least 50% are professionally certified 13

b) List of complaints and how handled showing at least 75% of complaints are addressed appropriately and within the established deadline, and sanctions are imposed as published in the Quarterly Procurement Bulletin.

Procurement survey that verifying efficient and effective handling of complaints

Reduce procurement delays and improve timeliness of award of contracts.

Copy of the Quarterly Procurement Bulletin showing additional information on the length of time of bid evaluation process and showing that at least 75% of bids for that period awarded within bid validity period.

Procurement survey that verifying timeliness of contract awards and verifying disclosure

Ensure that all procurement activities are audited by Bawasda, and results of audit included in Bawasda’s regular audit report.

Copy of report on audit of procurement done by Bawasda.



13 Assuming that national certification system is in place.

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World Bank


Analyze and report on price trends Copy of the Quarterly Procurement Bulletin showing trends in unit costs and prices.

Procurementsurvey that verifying unit prices and related quality of construction / goods

Page 16 of 16

Summary Of

Perda No.7/2004 On Public Participation In Development And Public Policy Process In Kabupaten Boalemo

Objectives of Public Participation (article 3): • Improve comunity role in the development and public policy process within the framework of

good governance.

• Develop a sense of belonging from various parties to the development and public policy process.

• Ensure the sustainability of regional development

Rights of the Public (Article 4): • Every persons have a right to convey their opinions on development and public policy

process, directly or indirectly, verbally or in writing.

• Development and public policy proceses mentioned in the above sub-article, include: a. Basic Regional Development Guideline b. Regional Strategic Plan c. (Annual) General Policy Direction d. Annual Regional Development Plan e. Spatial Plan and it’s revision f. Formulation of Local Regulations. g. Implementation, Supervision, Monitoring, and evaluation of projects/program and/or

policies. h. And other process of government policy formulation hich concerned the public interest

Obligations of the Public (article 5.1 and 5.2): • Comply with existing laws and regulations

• Uphold moral, courtesy, religious and customary values of the region.

• During the implementation of development and public policies, public are obliged to provide self-support both materially and immaterially

Right of Public Agencies (Article 6) • Public agencies may deny public participation if the public do not fulfill their obligation as

stipulated in the article 5.1

• Public agencies have aright to law protection as regulated in the existing laws and regulation

Obligation of Public Agencies (Article 7): • Include the public in each stages of development and public policy process and provide

community education.

• Comunity education refered in the above sub-article shall be done through the provision of training and education, counselling, guidance, public dialogue, comparative study, internship, and other effective and efficient schemes.

• Provide mechanisms to facilitate the opportunity for all persons to participate in development and public policy process.

Forms of Participation (Article 9): • Provision of input for development and public policy process.

• Safeguard, maintain, implement, and monitor policies.

• Cooperation in research and development for public policy formulation.

• Provide correction on the draft of public policies.

Procedures for participation (article 10): • Procedures for public participation shall be announced; Public agencies shall prepare the

schedule for (policy) formulation.

Documentation (article 12): • All documents related to public participation, such as, draft and final document of the

policies, feedback from the public, and minutes of decision making shall be open for public.

Rejection of Public Participation (Article 13): • In the case of public agencies choose to reject participation as regulated in article 6, public

agencies must convey their reasons to reject participation within 7 days after a request for public participation is submitted.

Every persons have a right to submit an objection for the rejection of public participation by public agencies within 7 days after a rejection letter is submitted. This objection letter shall be responded by public agencies within 7 days after it has been submitted (Article 14).

Any decision with regard to development and public policies shall be announced through the mass media. The decision making process shall give attention to the representativeness of the stakeholders, including gender representation (article 15)

Every persons who do not implement or hinder the implementation of this regulation shall be provided with administrative sanctions as per the existing law and regulation. Every person or public officials who become witnesses are protected by law as per the existing law and regulations (article 17).

This regulation will be effectively implemented from January 2006.

Summary of Perda No.6 Year 2004

Transparency of Public Service Delivery in Kabupaten Boalemo

Perda has 11 chapters and 43 articles

Some definitions:

• Transparency is a system that ensures public access to information of the process and result of public policy making, including budgeting

• Information is all kind of communication including facts, data or opinion using media of writing, numbers, graphic, and audiovisual

• Public information is information that can be provided, made, maintained by government. This information is public property and can be accessed by public at all time unless protected by other regulation.

• Transparency committee is an independent institution whose role is to mediate conflicting parties in cases related to citizen right to information in Kabupaten Boalemo

• Mediation is an effort in resolving complaint/conflict, and transparency committee can be regarded as third party in advocating the complainer and the accused to discuss and obtain mutual agreement that satisfies both parties.

• Applicant is every citizen or legal subject who is able to enforce legal action to request information as regulated in this regulation.

Principle and Objective – Chapter 2

• All public information is open and can be obtained by people fast, timely, affordable cost and with simple procedure, except information that consider ‘limited’

• The objective of the perda is to provide the right for people to obtain public information.

The Right and Obligation of the User of Information– Chapter 3, Article 4 and 5

• Public has a right to obtain information as regulated in this regulation, including: (i) right to listening, observing, be aware of and published information; (ii) right to know schedule and agenda of public meeting; (iii) right to obtain copy of information; (iv) to be informed about something

• People have to provide the justification to obtain public information

• Public is obliged to maintain and not to misuse the information based on prevailing regulation

The Right and Obligation of the Public Agency – Chapter 3, Article 6-10

• Public agency has the right to reject request for classified information.

• Public agency is obliged to provide, give or publish public information except classified information. A staff is appointed to produce an information provision system

Information that Must be Available at All Time – Article 11

• List of all public information, including classified one, which is managed by public agency

• Public agency decision and its consideration

• All policies and its back-up documents

• Project work-plan including estimated annual revenue and expenditure of public agency

• Agreement with other parties.

Information that Must be Published Immediately – Article 12

• Information that can harm people’s live

Request of Information Procedures – Articles 16

• Public can convey request of information directly or via a letter, except information on the internet

• If the applicant come from outside Kabupaten Boalemo, then he/she needs to give their intention to use the information.

• Such request (for information) should be met within one week.

Exempted Information – Chapter 4, Article 17

• Information that could block law enforcement process

• Information that would endanger the legal protection of intellectual property

• Information that would endanger the national defense strategy and security

• Information that would result disturbance of an individuals privacy

Transparency Committee – Chapter V, Article 18-23

• Consist of 7 members, chaired by one chairman, one vice chairman and one secretary who are all selected by the members of committee

• Members of committee are selected by the formation team of such committee, based on community members and organizations proposal

• The elected members of committee is then approved by DPRD and endorsed by Bupati’s Decree.

• The tasks of the committee are: (i) monitoring public agency compliance in providing public information; (ii) reviewing and developing public agency capacity in practicing the transparency

• The committee can open classified information based on request as regulated in this perda

Complaint Handling Mechanism – Article 31 and 32

• People have the right to send their complaint in writing to transparency committee

• Transparency committee is obliged to investigate the case and take necessary follow-up action and the investigation result should be released in 30 days

• People can complain in the following cases: (i) the document and the formulation process are not available; (ii) the information request is rejected; (iii) unreasonable costs

• This complaint mechanism does not exclude the possibility for cases to be settled through deliberation (musyawarah)

Budget – Article 35

• Budget for Transparency Committee should be allocated in the APBD

• Public agency can only charge people for cost of photo copying and mailing.

Sanction

• Bupati gives administrative sanction for non-compliance to the public agency in consultation with the transparency committee

Profile Action Plans of Poverty Strategy

BOALEMO PRSP Boalemo district is divided into six sectors: Social and Cultural, Agriculture, Health, Education, Public Works and Economy sector. Activities of Infrastructure Development Development of infrastructure activities is focused in following four sectors: 1. Agriculture sector: Development of irrigation

channel network in the highlands and lowlands by using appropriate technology according to geographical condition

2. Health sector: Procurement of health infrastructure such as health center at sub district level, health clinics focused in isolated, highland and coastal areas, whilst in urban areas activity focus is on access to clean water and improved sanitation.

3. Education sector: Development of elementary and secondary school in highlands and isolated areas. The exact location is decided after there is an agreement with local communities.

4. Economy sector: Construction of new roads or improving quality of current roads to facilitate community access, to market their produce, supported by expansion or greater number of markets.

Capacity Building Activities With 30% of total activities in capacity building, the Agriculture sector has the biggest portion of capacity building activities. Aside from shared learning activities and participatory planning, training and skill improvement include: a) formulation and institutional strengthening of farmers groups based on their income, b) management of village budget for village parliament and staff in order to benefit the poor, c) environmental conservation groups at village level, d) production of organic compost.

Improvement of Policies The Education sector is focused on improvement of policies in curriculum development based on local conditions, allocation of budget for elementary and secondary school and giving more incentives to teachers who work in isolated areas. The Health sector identifies that policies such as a health cards - in order that poor can have free access to health services - need to be supported, as well as incentives for health workers who work in difficult areas. The Action Plans also propose to establish local regulation of coastal-use that can give access to poor fishermen and produce spatial plans for coastal and sea areas in a participatory way. Improvement of policies also include policies to manage alcohol consumption and their distribution to village level as well as promotion of local funding to support local economy. The action plans also recommend giving block-grants to villages.

0

5 4

11

2

22 4 32

3

6 1 9

5

2 6 9

0

9 2 5

6

2 1 9

0% 20% 40% 60% 80% 100%

Social and cultural sector

Health sector

Health Sector

Education sector

Workforce sector

Economy Sector

Infrastructure Capaccity Building Policies and regulations Other activities

Notes: Each sector is divided into four different activities that is related to 1) infrastructurer, 2) capacity building, 3) policies and regulations, and 4) others. Figues in graphic shows number of activities according to sector

Other Services and Activities Plans include: awareness activities to support poverty reduction strategy, participatory assessment to identify network of illegal logging and its impact, and awards given to communities who routinely giving reports. Agricultural Sector

Developing partnership between cane farmers and Rajawali company to develop mutual benefit,

strengthening farmers in water management, developing skills for handicraft using coconuts that are in abundance, participatory reforestation in critical lands.

Fishery Periodic monitoring of coral and conducting meetings between government institutions and poor fishermen.

Health Sector Focused in improving healthy settlements and services especially in isolated areas.

Education Sector Improving education services by conducting a survey that has a strategic location to villages.

Workforce sector Awareness of critical thinking for villagers about their rights to control implementation of development.

Prasarana - SRTPK Boalemo

5 6 7

5. Pembangunan irigasi air tanah (bor), pipanisasi (di dataran tinggi) lokasinya disepakati bersama masyarakat setempat.

Kimpraswil & Dinas Pertanian

6. Pembangunan irigasi permanen di dataran rendah yang lokasinya disepakati bersama masyarakat setempat.


Memprioritaskan pembangunan puskesmas atau pustu disertai dengan penempatan tenaga para medis dan tenaga penyuluh gizi serta suplai obat-obatan dan makanan tambahan bagi keluarga miskin di wilayah pegunungan, terpencil dan pesisir.

2. Pembangunan pustu tingkat desa dan pembangunan Posyandu tingkat dusun yang tidak dapat dijangkau oleh Pustus.

X Memudahkan akses masyarakat miskin untuk memperoleh pelayanan kesehatan.

Kimpraswil

3. membangun bak penampungan air di hulu dan di hilir untuk pipanisasi serta pembangunan sumur dan pegadaan pompa air bagi keluarga miskin dan MCK Umum, Pengadaan penyaringan air serta pemasangan pipa mulai dari hulu sampai ke bak penampungan yang berloka

Kimpraswil

4. Pembangunan Pondok bersalin desa (Polindes) di tiap desa KimpraswilMelanjutkan program rumah layak huni yang telah dikembangkan Pemkab dengan menganggarkannya secara reguler

4. Melahirkan program kawasan layak huni dan penyehatan lingkungan pemukiman

Memberikan perlindungan sosialbagi keluarga miskin untuk memiliki rumah layak huni dengan dukungan lingkungan yang sehat

Kimpraswil dan KPMD

Mengembangkan sekolah terbuka yang kurikulumnya memasukkan konsep communitiy collegai dengan memanfaatkan guru sekolah yang tinggal di wilayah pesisir dan pengajar tehnis prikanan dari instansi

3. Pengadaan sarana sekolah terbuka ditempat yang disepakati masyarakat pesisir agar peserta belajar Familiar dengan tempat tersebut

Memberikan kesempatan belajar alternatif bagi anak-anak nelayan dan dalam jangka panjang lebih trampil di bidang usaha kelautan

Dinas P Dan K

3. Pembangunan SD/SLTP dilokasi yang telah disepakati dengan masyarakat setempat

Dinas P dan K Dan DinasKimpraswil

5. Pengadaan perpustakaan umum tingkat Kab. Boalemo di lokasi yang mudah di akses

Dinas P dan K

Infrastruktur - SRTPK Boalemo

B. BIDANG PERTANIAN

C. BIDANG KESEHATAN

D. BIDANG PENDIDIKAN

Untuk memudahkan akses masyarakat miskin terhadap kebutuhan air dan MCK

Kegiatan Tujuan

Membangun jaringan irigasi air tanah (Bor atau pompanisasi) di dataran tinggi dan jaringan irigasi permanen atau repitalisasi di dataran rendah di lokasi yang dapat memberikan dampak luas disertai penguatan kapasitas kelompok P3A

Tahun 200..PJNo Strategi Terpilih

Memprioritaskan anggaran pembangunan gedung SD dan SLTP di wilayah pegunungan dan wilayah terpeencil

Memberikan kesempatan luas kepada anak-anak petani/nelayan miskin di pegunungan dan pesisir untuk menikmati pendidikan di tempat

Meningkatkan suplai air untuk pertanian dan perkebunan secara rutin

Porgram pipanisasi dan MCK di wilayah pegunungan dan terpencil, pompanisasi dan pengadaan sumur di wilayah pesisir dan perkotaan untuk keluarga miskin.

Prasarana - SRTPK Boalemo

1. Perintisan jalan tanah bagi desa-desa yang punya hasil produksi tetapi belum ada jalan yang dapat dilalui kendaraan

Kimpraswil

2. Pengerasan jalan tanah menjadi jalan kerikil Kimpraswil3. Pengaspalan jalan secara bertahap di desa-desa yang sudah pinya jalan kerikil atau sudah beraspal tetapi rusak berat

Kimpraswil

4. Pembangunan jembatan di wilayah pembangunan jalan desa Kimpraswil2. Menambah kios/ ruko di kompleks pasar Dinas Pasar, dan

Kimpraswil

3. Pembangunan pasar dan relokasi pasar permanen dengan jumlah los yang mencukupi (pasar lokal dan kabupaten)

Dinas Pasar, dan Kimpraswil

Memberi kesempatan pelaku usaha keciluntuk berjualan didalam pasar dan beragamnya jenis-jenis perdagangan

F. BIDANG EKONOMI2 Memprioritaskan pembangunan jalan di wilayah Pesisir,

pegunungan, dan terpencil untuk memudahkan transportasi umum dan hasil produksi

Memperluas Areal pasar Yang ada sekarang untuk menampung pedagang yang lebih banyak

Memudahkan masyarakat melakukan mobilitas dari dan ke desa untuk memasarkan hasil hasil produksinya

5 6 7

Deep water irigation construction (drill) and gravity pipe system in highland, in location agreed by local community


Permanen irigation construction in lowland, in location agreed by local community


1 Priority on establishment of Puskesmas or Pustu accompanied by medical and nutrition staffs, and also supply of medicine and additional health food for poor family in coastal, mountain and remote area

Establish Pustu in village level and Posyandu in sub-village level which not covered by Pustu

X Mountain and remote area

Easy access for poor family to health services

Kimpraswil

Construction of ground water pipe system with browncapturing in up-river and reservoir tank in down-river connected with distribution pipeto user (poor family); and also public toilet

Kimpraswil

Establid Polindes (maternity center) in every village Kimpraswil3 Continuing appropriate housing program developed by

Local Governance with reguler budgetingCreating appropriate housing and health environment program Social protection for poor family to

better house and health environmentKimpraswil dan KPMD

1 Developing sekolah terbuka with "community college" concept, and emphasized teacher lived in coastal area and also government fisheries instructor

Provisions of Sekolah Terbuka in coastal area in location agreed by local community

Coastal area Children of fisherman family had opportunity to education and skills in fishery

Dinas P Dan K

Establisment of SD/SLTP in location areed by local community Dinas P dan K Dan Dinas Kimpraswil

Provisions of district level public library in strategic location Dinas P dan K

No Strategy

Budget prioritizing on establishment SD and SMP in mountain and remote area

Wide opportunity for children from poor farmer and fisherman in mountain and coastal area to access education services

Increase regular water supply for agriculture and plantation

Gravity pipe water supply and sanitation program in mountain area and remote area, water supply with pump and dugwell in coastal and urban area

Location

Mountain area, remote area, coastal area, and urban area

Mountain area and remote area

Deep water irigation construction (drill or pump) in highland dan permanent irigation in lowland, in location able to give wide impact accompanied by capacity building of P3A (water user group)

Higland and lowland area

2

2

Infrastructure Sub-project Identification, District of Boalemo

AGRICULTURE SECTOR

HEALTH SECTOR

EDUCATION SECTOR

Easy acces to water supply and sanitation services

1

Detail Activity BenefitYear 200...

Dinas

5 6 7

Opening rough road access to remote village with natural product Kimpraswil

Improvement land road to gravel KimpraswilVillage road asphalt KimpraswilBridge construction in village road KimpraswilIncreasing number of stall or store in market area Dinas Pasar, dan

Kimpraswil

New market construction and re-located permanent market with appropriate number of stalls (local market and district level market)

Dinas Pasar, dan Kimpraswil

Detail ActivityYear 200...

Remote area

No Strategy Benefit Dinas

Small trader access to market

ECONOMIC SECTOR

2

1 Prioritizing road construction in coastal, mountain and remote area for better access to public transportation and market

Improvement existing market to cover more trader

Easy in-out village access and easy access to market

5 6 7

Program keadilan gender dalam rumah tangga melalui penyuluhan dan pelatihan secara bertahap.

2. Pelatihan kesetaraan gender bagi ibu-ibu RT keluarga petani dan nelayan.

Meningkatkan pengetahuan dan kesadaran kritis masyarakat mengenai kesetaraan perempuan dan laki-laki dalam pengambilan keputusan di dalam rumah tangga.

BKB-PP

Rehabilitasi hutan dan lahan yang telah dirambah disertai kebijakan penempatan tenaga penyuluh dan jagawana di wilayah pegunungan yang sudah sangat kritis.

1. Assesment secara partisipatif untuk menggali informasi motivasi penebangan/perambahan hutan, identifikasi pelakunya, mata rantai penjualan kayu illegal, jumlah mesin senso yang beroperasi, dampak yang ditimbulkan, dsb.

X X X Mengeliminir penebangan/perambah hutan dan meningkatkan pengawasan

Dinas Kehutanan

2. Konsultasi publik illegal loging dan dampak yang ditimbulkan serta perumusan rencana tindak.

X Dinas Kehutanan

1. Semiloka tentang aktual hutan dan expose hasil temuan dari assesment partisipatif.

X Dinas Kehutanan

3. Merintis Pembentukan Forum Multi Pihak Kehutanan X Dinas Kehutanan4. Penguatan kapasitas Forum Multi Pihak Kehutanan X Dinas Kehutanan5. Pertemuan priodik Forum Multi Pihak Kehutanan untuk mengevaluasi kegiatan/kebijakan yang telah berjalan

X X X Dinas Kehutanan

9 Rehabilitasi atau penanaman kembali pohon bakau yang sudah kritis dengan melibatkan masyarakat pesisir mulai dari perencanaan, pelaksanaan, pengawasan dan evaluasi.

1. Assesment Partisifatif untuk menggali informasi motivasi penebangan hutan bakau. Identifikasi pelakunya dan dampak yang ditimbulkannya terhadap masyarakat pesisir di wilayah pesisir yang sudah sangat kritis

X Memulihkan kembali hutan bakau yang telah kritis untuk menangkal pengikisan pesisir dan sedimentasi

Dinas Kehutanan

2. Mempersiapkan masyarakat untuk terlibat langsung pada program rehabilitasi hutan bakau untuk membuat perencanaan

X X Dinas Kehutanan

Identifikasi Sub-Project Capacity Building Kabupaten Boalemo

A.BIDANG SOSIAL BUDAYA

B. BIDANG PERTANIAN5

6 Membentuk Forum Multi Pihak Kehutanan dengen mengefektifkan pertemuan rutin untuk membicarakan; perencanaan, pelaksanaan, monitoring dan evaluasi serta langkah-langkah penegakan hukum secara efektif.

Sebagai forum berbagai pihak membangun visi yang sama terhadap hutan.

No Strategi TerpilihTahun 200..

PJTujuanKegiatan

5 6 71. Pemetaan wilayah-wilayah berasarkan potensinya masing-masing

X Bappeda & Dinas Perikanan

2. Menyusun perda tentang RTRW Pesisir dan Laut yang memberikan akses masyarakat pesisir untuk mengembangkan usahanya.


3. Penetapan dan sosialisasi RTRW Pesisir dan Laut yang memberikan akses masyarakat pesisir untuk mengembangkan usahanya


1 Pendataan ulang secara konprehensif mengenai jumlah anak usia sekolah, anak putus sekolah dan jumlah anak yang sedang bersekolah dengan memanfaatkan tenaga dari berbagai pihak.

1. Seminar hasil dan merumuskan rencana tindak dari hasil pendataan

Memudahkan tenaga yang melakukan pendataan secara efektif dan memudahkan intervensi agar tidak terjadi program yang tumpang tindih

Dinas P Dan K

1. Rasionalisasi gedung SD pada wilayah yang berdekatan dan menetapkan 1 – 2 SD yang dapat dijangkau dari beberapa permukiman

Dinas P Dan K Dan BKD

2. Menerbitkan kebijakan bupati tentang pembebasan biaya pendidikan bagi siswa SD – SLTP

Dinas P Dan K Dan Bagian Hukum

3. Kebiajakan tentang mengefektifkan dan efesiensi penggunaananggaran pendidikan dengan menggabungkan seluruh sumber-sumber anggaran pendidikan kedalam Program Wajib Belajar 9 Tahun tanpa biaya

Dinas P Dan K Dan Bagian Keuangan

1. Lokakarya penatalaksanaan DAU desa dan penetapan rumus yang proporsional serta rekomendasinya

KPMD

2. Penetapan kebijakan DAU desa berdasarkan rekomendasi lokakarya.

Tim Koordinasi (KPMD, Bappeda, PU dan Bag.Tapem, Bag. Hukum)

3. Pelatihan manajemen penggunaan anggaran DAU desa bagi pengurus BPD dan aparat Desa

KPMD

4. Magang / Studi Banding aparat PEMDA ke Daerah/propinsi yang telah menerapkan DAU Desa

PU, Keuangan, Bappeda, PMD

No Strategi Terpilih KegiatanTahun 200..

D. BIDANG PENDIDIKAN

11 Menyusun kebijakan tentang RTRW laut dan pesisir secara partisipatif untuk memberikan akses masyarakat pesisir (miskin) memanfaatkan lokasi-lokasi secara adil dan proporsional.

Meringankan beban orang tua siswa dari seluruh biaya yang menghambat dan merupakan perlindungan sosial pemkab kepada orang miskin sehingga angka putus sekolah dapat lebih ditekan

Mempercepat pemerataan pembangunan dan kesejahteraan di pedesaan

3 Kebijakan tentang pembebasan biaya pendidikan SD – SLTP dari seluruh jenis pungutan

1 Kebijakan perimbangan keuangan kabupatendengan desa (DAU DESA) secara proporsional

E. BIDANG KETENAGAKERJAAN

Untuk mengatur pembagian wilayah pesisir dan kelautan secara proporsional antara pengusaha perikanan dan masyarakat pesisir untuk memberikan perlindungan terhadap nelayan miskin

Tujuan PJ

5. Penyuluhan penyadaran kritis bagi masyarakat pedesaan mengenai hak mereka untuk mengontrol pelaksanaan pembangunan.

KPMD

6. Pelatihan pembuatan Peraturan Desa (Perdes) bagi pengurus BPD dan LPM serrta aparat desa

Tim Koordinas Bappeda, Bag. Hukum, Bag. Tapem, KPMD,

1. Training Of Fasilitator (TOF) perencanaan partisipatif tingkat Bappeda dan KMPD2. Training Of Fasilitator (TOF) perencanaan partisipatif tingkat Kecamatan yang pesertanya direkrut 3 orang dari setiap desa.

Bappeda dan KMPD

3. Menyusun buku panduan bagi fasilitator desa dalam Bappeda dan KMPD4. Pelatihan bagi BPD dan LPM serta aparat desa mengenai tehnis pengawalan hasil perencanaan desa

Bappeda dan KMPD

1. Diskusi intensif dengan buruh/petani/nelayan secara perwakilan untuk menyerap informasi dari mereka tentang upah yang diterima.

Bag. Hukum & Bag. Ekonomi

2. Menerbitkan keputusan Bupati tentang standarisasi pengupahan buruh dan sistem bagi hasil bagi petani penggarap dan nelayan


1. Pendataan pelaku usaha kecil / Home Industri yang telah ada dan mengklasifikasikannya berdasarkan jenisnya dan masalah-masalah yang dihadapi

Tim Koordinas Bappeda, Dinas Pertanian, Dinas Perikanan, Dinas Pasar, Bag. Ekonomi dan Perindagkoptan

5. Kebijakan kredit bergulir yang disiapkan dalam APBD dalam hal ini Pemkab sebagai chaneling dan perbankan sebagai executing

Tim Koordinas Bappeda, Bag. Ekonomi, Bag. Hukum dan Dinas yang terkait

BPD dan LPM serta aparat desa dapat mengawal hasil perencanaan yang telah disepakati di tingkat desa

Memberikan perlindungan hukum bagi buruh/petani/ nelayan terhadap pengusaha/pemilik modal secara adil

Menciptakan kesempatan berusaha bagi pelaku usaha kecil yntuk berkembang

3 Melahirkan kebijakan/ pengaturan tentang standarisasi pengupahan terhadap buruh dan bagi hasil terhadap petani dan nelayan berdasarkan standar yang adil.

2

F. BIDANG EKONOMI4 Kebijakan kredit lunak bagi pelaku usaha

kecil/mikro dengan sistem eksekuting dan caneling antara pemkab dengan perbankan.

Peningkatan kapasitas kelembagaan BPD dan LPM serta aparat desa untuk mengawal perencanaan pembangunan tahunan secara berjenjang

5 6 7

1 Household gender equity program trhough gradual elucidation and training.

Gender equity training for farmers and fishermen household wives.

Improve the community's critical knowledge and awareness concerning the equity of both women and men in household decision making.

BKB-PP

Participative assessment to collect the information regarding the forest felling/clear away motivation, persons identification, illegal logging links, the number of operating chain-saw machine, side-effects, etc.

X X X Forestry Agency

Public consultation on illegal loging and the side-effects, and also the formulation of action plan.

X Forestry Agency

Workshop on forest actual and participative assessment findings exposure.

X Forestry Agency

Initiate the formulation of Multy-stakeholders forestry forum X Forestry AgencyCapacity building of the Multy-stakeholders forestry forum X Forestry Agency5. Regular meetings of the Multy-stakeholders forestry forum to evaluate the working activities/policies.

X X X Forestry Agency

1. Participative assessment to collect the information regarding the mangroove forest felling motivation. Identify the persons and the side-effects to the coastal communities along the critical coastal areas.

X Forestry Agency

2. Preparing the community to be directly involved on the planning of mangroove forest rehabilitation program.

X X Forestry Agency

1. Area mapping according to their own potential. X Bappeda & Dinas Perikanan2. Arranging the local regulation on coastal and marine area layout plan that gives the access to the coastal communities to develop their business.


3. Establishment and socialization of Coastal and Marine area layout plan that gives the access to the coastal communities to develop their business.


4 Arranging the policy of marine and coastal area layout plan (RTRW) participatively to give the access to the poor coastal communities to exploit the locations fairly and proportionally.

To organize the proportional coastal and marine area allotment between the fishing entrepreneur and the coastal communities to protect the poor fishermen.

A. SOSIO-CULTURE SECTOR

B. AGRICULTURE SECTOR1

2 Forming the multy-stakeholders forestry forum by effecting regular meetings to discusses, plans, implementations, monitorings and evaluations along with the effectively law enforcement steps.

Functioning as a multy-stakeholders forum to create the same forest vision among stakeholders

Identification of Capacity Building Sub-Project in Boalemo District

No Chosen Strategy Detail ActivityYear 200..

Objective Agency

3 Rehabilitation or replant of the critical mangroove trees by involving the coastal communities starting from the planning, implementing, monitoring and evaluating.

Restore the critical mangroove forest to prevent the coastal erosion and sedimentation.

Rehabilitation of cleared away forest and land along with the policy of instructor and ranger placement in critical mountains area.

Eliminate the forest felling/clear away and improved the monitoring.

5 6 7

1 Comprehensive data re-collection of the number of school-age children, drop-out children and school children using the multiple resources.

1. Result seminar and formulating the action plan from data gathering.

To ease the data collector in collecting data effectively and to facilitate the intervention so that there will be no overlapping programs.

Dinas P Dan K

1. Rationalitation of the Elementary School buildings in surrounding area and to determine 1 - 2 reachable elementary schools from several residential area.

Dinas P Dan K Dan BKD

2. Publishing the bupati's policy regarding the free education cost for elemtary and junior high students.

Dinas P Dan K Dan Bagian Hukum

3. The policy of effectiveness and efficient education budget utilization by combining all education budget resources into free 9 years Basic Education Program.

Dinas P Dan K Dan Bagian Keuangan

1. The workshop of village DAU management and the determination of proportional formula and its recommendation.

KPMD

2. The determination of village DAU policy according to workshop recommendation.

Tim Koordinasi (KPMD, Bappeda, PU dan Bag.Tapem, Bag. Hukum)

3. Management training for village DAU budget utilization to BPD and village government management.

KPMD

4. Part time/Case Study of the Local Government (PEMDA) to village DAU implementing area/province.

PU, Keuangan, Bappeda, PMD

5. Critical awareness elucidation to village communities about their rights to control the development implementation.

KPMD

6. Training of Village Regulation planning (Perdes) to BPD, LPM and village management.

Tim Koordinas Bappeda, Bag. Hukum, Bag. Tapem, KPMD,

1 The proportional income balancing between the district and the village (DAU DESA)

To speed up the development and prosperity balancing in villages.

2 The policy of free education cost (Elementary - Junior High School) from all quotations.

To ease the students' parents burden from all the cost barriers and as a social protection from the local government to the poor communities so that the number of drop-outs can be reduced.

E. MANPOWER SECTOR

D. EDUCATION SECTOR


Objective Agency

5 6 71. District level Training Of Fasilitator (TOF) in participative

l iBappeda dan KMPD

2. Sub-district level Training Of Fasilitator (TOF) in participative planning which 3 participants were being recruited from each villages.

Bappeda dan KMPD

3. Arranging the hand-book for village facilitator in facilitating the village communities needs partnering with the experienced institutions.

Bappeda dan KMPD

4. Training for BPD, LPM and village management in technical guidance to village planning results.

Bappeda dan KMPD

1. Intensive discussions with the representation of labors/farmers/fishermen to absorb their information about their payment.


2. Publishing the Bupati's decision (SK) on labor payment standard and the profit sharing system for the working-farmers and fishermen.


Data collection of the existing small businessmen/home industry and classified them according to the type and the problems occured.

Tim Koordinas Bappeda, Dinas Pertanian, Dinas Perikanan, Dinas Pasar, Bag. Ekonomi dan Perindagkoptan

Revolving credit policy prepared in APBD, as in this case the district government act as the channeling and the banking as the executing.

Tim Koordinas Bappeda, Bag. Ekonomi, Bag. Hukum dan Dinas yang terkait

Objective Agency

1 Soft-loan policy for small/micro businessmen with executing and chaneling system between the local government and the banking.

Creating the business chances for small businessmen to develop.

3 To produce the policy/management of payment standard for labor and profit sharing for the farmers and fishermen according to the equal standard.

To give the fair law protection for labors/farmers/ fishermen against the entrepreneur/capital owner.

F. ECONOMY SECTOR

2 Institutional capacity building of BPD, LPM and village management to maintain the annual development planning gradually.

BPD, LPM and village management can maintain the planning results as approved in village level.


District RTPK Profile

LAMONGAN The Poverty Reduction Strategy in Lamongan District was focused on the sectors of: 1) education, 2) health, 3) agriculture-farm and fisheries, 4) manpower, cooperative and financial, 5) forestry specific issue, and 6) coastal specific issue. In addition to the above sectors, the stressing of the strategy was modified to the clusters that represents the caracteristic of Kebumen district, such as i) Bonorowo cluster (flood sensitive area), ii) limestone hills, iii) lowland farming, and iv) coastal cluster. Infrastructure Supply Activity. The main focus was on the infrastructure supply in coastal and lowland farming clusters in fisheries sub-sector in the form of fish processing facility such as preserving and canned area. In farming sub-sector, the stressing was on the development of livestock market and fodder processing. Also in supplying the gas station for fishing boat. The development of irigation ditch that was part of the reservoir normalization was the focus of Bonorowo cluster and limestone hills that made them the flood control facility as well. In the limestone hills cluster, the road development – either improvement or asphalting – will support the community economy by creating an easy access to the markets. It also supporting the development plan of sekolah terbuka on the hills areas. Capacity Building Activity. The poverty reduction effort in education sector was done by creating the maximum cost standard of basic education (Elementary School/MI and also Junior High School/MTs) While health sector seen the importance of health cost study spent by the poor community so it can be discussed in public consultancy. Empowerment, training and individual or group assistance evenly spread in most of the sectors.

Policy Improvement. There were several policies that seem can support the poverty reduction effort in Lamongan district, such as: the maximum education cost policy; the policy of health insurance assurance especially for poor community; the policy regarding the assurance and easy access to the forestry soil for the community around the forestry area; and the regulation that motivate the effectiveness of the agricultural elucidation. Other Activities. Were the activities to support the infrastructure development, capacity building and policy improvement efforts. Various efforts were planned, such as elucidation, socialization, coordination meetings between the stakeholders and program executor, partnership, medicine supplies or even school supporting facilities. Monitoring and evaluating were expected to be implemented to see how far the implementation strategy can be done and succeded.

4

5

2

6

1

9

25

20

6

8

3

1

0

8

1

0

1

7

7

11

7

4

0

0

0% 20% 40% 60% 80% 100%

Education sector

Health sector

Agriculture-Farm & Fisherysector

Labor, cooperative &financial sector

Forestry sesific issue

Coastal spesific issue

Infrastructure Capacity Building Policy/ Regulation Others

Graph note: each sector divided into four kind of activity or action plan, that is 1)infrastructure, 2) capacity building, 3) policy/regulation, and 4) others. The number shows in each bar expressed the number of activity or action plan per sector.

1 2 3Education

Provision and rehabilitation of school facilities and infrastructure

V

Provision of books and laboratory facilities and infrastructure V V V

2 Establishing SMP level education services in remote area Establish open junior high school V Remote area in Cluster Pegunungan Kapur

Better access to appropriate education services for all junior high school age kids

Education Office

1 Developing agriculture-based home industry Build waste facilities to produce livestock fodder V V V Easy acces to livestock fodderBuild cows breeding facilities V V V

Build waste facilities to produce livestock fodder V V V

3 Establishing local market for agriculture product Build cattle market Better access to marketTransportation

65,4 km asphalted roads V79,10 km asphalted roads V104,49 km asphalted roads V

Irigation1 Utilizing dam and reservoir for irigation Utilizing dam and reservoir for irigation V V V Cluster Pegunungan Kapur Increasing water supply to farmers Irrigation Office

Coastal areas1 Meeting the demand for gasoline and diesel Building gas station in coastal area V Cluster Pantai Better access to gasoline and diesel oil at the

"standard" pricesMarine, Fishery and Livestock Office

Infrastructure sub-project in Lamongan PRSAP

Public Work Office

Agriculture and animal husbandry

2

1

Better quality cattle breeds

Cluster Pegunungan Kapur dan Bonorowo

Better access to transportation which will improve the local economy

Improving the quality of village road to connect to the district main road

No Strategy Sub-project

1 Improving school facilities

Provisions of agriculture site sample under KCD operate by local PPL (Penyuluh Pertanian Lapangan - Agriculture Extention Workers)

Year Dinas

Rocky areas, agricultural, urban, and Bonorowo[APA INI?] areas

Location Benefit

Education Office

Marine, Fishery and Livestock Office

Better quality of education

1 2 3

Study/survey on costs for primary and secondary education V VSeminar and workshop with all stakeholders to formulate the standard cost V V

Creating the necessary regulation on standard costs V VM&E on schools' compliance V V VSocialization of the role of the school committee V V V Education OfficeOrientation for school comittee members on development trransparent RAPBS (School Budgeting)

V V V Education Office

Integrated coordination among DPL and school committee V V V Education Office

Workshop to discuss mandatory insurance for the poor (the types of services, premiums, supporting organization)

V Health Office

Study on Health Financing V Health OfficeSerials discussions on policy on health insurance Health OfficePublic consultation on mandatory health insurance policy V V V Health Office

Workshop to formulate the steps to enforce the law in all state forest areas V

Issue a Bupati's decree (SK Bupati) to implement the District Law (no. 55) on the forest conservation area.

V

2 Creating the District Regulation (Perda) on forest protection Socialization of related laws and regulation to related office, such as the district government, related forestry agencies, communities, CSO, the logging companies.

V

3 Integrating the district's poverty programs with the forestry forpoor communities in the areas

-

4 Creating regulations to protect water sources and conservation areas.

-

1

1

Diknas Litbang and Bagian Penelitian

Standard costs determined

DPL and School Comittee implement their role and function as state in SK Mendiknas No 44/2002

Cluster Pantai dan Pertanian Dataran Rendah

Easy access to health services for poor family

Cluster Bonorowo, Pegunungan Kapur, Pertanian Dataran Rendah, dan Pantai

1

2

No Strategy Sub-project Location

Law enforcement by the police, army, district attorney, judges and the Ministry of Forestry

Year

Establishing standard/fixed costs for primary and secondary education (primary and junior high schools)

Capacity building for DPL Dewan Pendidikan Lamongan) and school committee

Health insurance for poor community

Education

Health

Forestry

Benefit Agency

Capacity Building - SRTPK Lamongan

Around forest area

Page 2 of 3

1 2 35 Moratorium of logging, involving all stakeholders (forestry,

district government, companies and communities) -

6 Developing a partnership between the community and state forestry company, with support by the local governement.

-

7 Establishing the district regulation to guarantee access to the land in the forest for communities in the area

-

8 The PHBM (Pengelolaan Hutan Bersama Masyarakat - Community Based Forest Management) program implementation needs to put forward the community surrounding the forest's participation and local caracteristic (either culture or land tipology).

-

9 Produce the Governor's Decision Letter (SK) that organize the PHBM in East Java Province.

-

Around forest area

No Strategy Sub-projectYear

Location Benefit Agency

Page 3 of 3

Kabupaten Solok (West Sumatra)

ILGR Pre-Investment Monitoring and Evaluation Results Updated: December 2004

Benchmark Indicator Baseline Situation in 2002 Prior to ILGRP Intervention

Status as of Nov 2004 Comments

1. Transparency and Participation 1.a. Announcement in mass media of the

summaries of budget and Bupati’s accountability report (LPJ) in mass media

The publication of the accountability report and budget in the local media was not initiated by the local government, but journalists

The review of the Budget was published in local media “Singgalang” initiated by the media

Bupati’s Accountability Report was published in local Media “singgalang” initiated by Information Board in cooperation with Media

Start from Budget Year 2005, information of the budget will be published by Information Board

Copy of newspaper clips is not available at the national secretariat

Information regarding media coverage is not available yet in National Secretariat

1.b. Announcement in mass media of the availability of the following documents (locations, requirements, time, and the costs to get it): budget, Bupati’s accountability report, regional strategic plan (Propeda, Renstra), annual plan (Repetada, AKU and Strategies and Priorities), local regulations and spatial plan are available at the designated location(s).

Public had no information about how and where they could get the public documents

Availability of public documents was published by local media “Singgalang”

F-Kab reported that according to NGO’s and Journalist in Solok, Budget Document (APBD) and Bupati’s Accountability Report have been easier accessed than before, although most of them has not yet acknowledged and needed those documents

Information Provided by F-Kab

1.c. Announcement in mass media of the procedures, costs, and time needed to get licenses and other services, such as ID cards, birth certificate, business license and building permits at least once a year, as well as being permanently posted at designated locations.

Not yet executed Information of the procedures, costs, and time needed to get licenses and other services, such as ID cards, birth certificate, business license in form of leaflets have been available in one-stop-service office and distributed to District and Nagari (village level)

Announcement throught local media has not been executed yet.


1.d. Submission of draft local regulation (perda) on public access to decision-making process (participation) to DPRD, that contains

Not yet in place Perda regarding Transparency and Participation in all aspects of Governance was legalized by DPRD

The copy of draft Perda available in national secretariat

Page 1 of 7




assurance of: • Public participation in drafting and finalization

discussion of any perda in DPRD, planning documents and budgeting processes (including Propeda, spatial plans, Repetada and APBD);



Perda Transparency covers the right of public to acces the information regarding discussion in DPRD; planning document such as Propeda (local mid term development planning), Renstra (strategic planning), and Spacial Planning ; the draft an final document of local regulation; Audit report; Bupati’s Accountability Report; etc. But, there is no detail mechanism for public complain and its follow up

1.e. Submission of draft local regulation (perda) on

public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to:

• Information related to discussion on public policies in DPRD;

• Planning documents (Propeda, Renstra, Repetada, and spatial plans);

• Draft and final documents of all perdas, budget (APBD) and budget realization reports;

• Audit reports and their follow-ups, Bupati’s accountability reports (LPJ), information on procurement policies, procedures and practices, on complaint resolution mechanism and results (follow-up).

Not yet in place The regulation of Transparency and Participation is united in one Perda

Participation as regulated in Perda covers : participation in formulating and finalizing all of draft of local regulation in DPRD and participation in planning and budgeting.

See 1.d

1.f. Quality of (draft) Perda on Transparency and Participation (specific, logic, realistic to implement or is a supporting guideline necessary)

Not yet relevant Perda is logic and realistic enough. But it still need code of conduct to be implemented in government operation

Page 2 of 7




1.g. Drafting process on Transparency and Participation Perda: Number and kind of public consultation processes, (kabupaten, kecamatan or village level), amount of participants, changes in the draft that result out of inputs from the community during the public consultation proceses.

Not yet relevant Public consultation conducted three times in district level legalized, and three times in Kabupaten level before draft Perda legalized


1.h. Implement enhanced public participation in annual planning and budgeting that covers:

• Set budget ceiling as an input for dinas and kecamatan planning discussions

• Allocate block grant to village/kecamatan level. The information of the allocation and guidelines are disclosed to public.


• Public meetings on inter-dinas programming • Public consultation on final draft of APBD

There has been initiative to reform the Pra-Rakorbang with the forum called Tim Sinergi that represented government and community leaders in discussing priority

There has been initiative to involve public in budgeting processes, but the initiative has not been formulated yet in to clear mechanism

At present, still on formulation to reform overall budgeting mechanism for Budget year 2005. The Team has been established to to do the reform, and result will be legalized by Bupati’s Decree (SK Bupati)


1.i. Other concrete initiatives to increase transparency

Not yet in place Local Government and Intenational Transparency facilitate the meeting to sign Integraty Pact Agreement

The Alliance for Implementing Integrity Pact Agreement (APPI) was established

There was agreement that procurement will be the first focus of the Integrity Pact

Information provided by the F-Kab

The media clips has been available in national secretariat

1.j. Other concrete initiatives to increase participation

Involving NGO’s in annual planning processes

In Local Planning & Budgeting workshop, there was agreement that people involvement has not yet been optimal and ther was planning to formulated participatory budgeting mecanism

See baseline document of Solok

1.k. Budget quality: Budget is clearly allocated for priorities in accordance with PRSAP

Not yet relevant Budget year 2005 has not been legalized yet. In Year 2004, there was effort toadapt action plan of PRSAP to dinas proposals. According to F-Kab, some Dinases have initiative to addopt the PRSAP in to their proposals for


Page 3 of 7




Budget Year 2005 2. Poverty Reduction Strategy and Action Plan (PRSAP)

2.a. PRSAP will become guideline based on Perda/SK Bupati is already in place

Not yet in place PRSAP has been legalized through SK Bupati in September, 2004.


2.b. Quality of the PRSAP (based on raliable data/information, is logic, focuses on certain issues, is specific/concrete and realistic to implement

Not yet relevant The Alternative Strategy proposed by PRSAP is clear, but it still need to be formulated into detailed action plan

The priority to enhanced poverty has not been identified because of the Budget year 2005 has not been legalized yet

Based on a review in the National Secretariat

2.c. Drafting process of the PRSAP: Number and kind of public consultation processes, (kabupaten, kecamatan or village level), amount of participants,amount of PPA locations, changes in the draft that result out of inputs from the community during the public consultation processes

Not yet relevant Public consultation conducted three times in Kabupaten level and four times in village level (the location of participatory poverty analysis-PPA)


2.d. Other concrete initiatives to reduce poverty There was fund to stimulate participation in building irigation, road, housing, clean water and infrastructure for education.

Kabupaten revolving fund

Stimulating fund program Changed refers to the unsatisfying evaluation result. Performed with more intensive supervision by dinas. Kabupaten revolving fund still felt ineffective, since there are a individual interest


3. Financial Management 3.a. Establishment of a Financial Management

Reform Commitee Not yet established Not yet established No intervention yet

3.b. Provide an appropriate enabling legal framework for financial management reforms, by issuing a local regulation (perda) on the Principles of Regional Finance in line and a Bupati’s decree (SK) on the policies, systems and procedures for the preparation and execution of the APBD, in accordance with

PERDA P3KD is legalized in Solok (Perda No. 21/2002). The substance generally was similar with other Kabupaten : only 60% to 70% achieved from P2TPD reform framework

The manual of Local Finance generated from Perda P3KD was published in Year 2003. The Manual contains four chapter and has been legalized by Bupati’s Decree (SK Bupati). The contents generally are similar with Perda P3KD.

No intervention yet Both Perda and SK avalaible in national secretariat

Page 4 of 7




existing central regulations.

3.c. Revenue Generation Framework Not yet available. Most of Perda formulated in this year were aimed to improving local revenue (PAD) through local tax and retribution.

Not yet available Perda’s according local tax and retribution available in national secretariat

3.d. Other concrete initiatives for financial

management reforms No information available No information available No information available

4. Public Procurement 4.a. Establishment of a work unit as focal point in

procurement reform Not yet established Not yet established In intervention yet

4.b. Issue an SK Bupati on the systems and procedures for implementation of the Keppres 80/2003, with special attention to the following: Adoption of standard bidding documents, establishment of mechanism for procurement complaints and enforcement of sanctions.

Not yet established SEB (Surat Edaran Bupati) No.100/667/TP/2004 to implementing Integrity Pact in procureement

SK Bupati to implementing Integrity Pact on procureement is being prepared, refer to Keppres 80/2003

Eventhough Integrity Pact was initiatef by TI (Transparency International), ILGR also actively support the activity nowaday

4.c. Implement provisions of Keppres 80/2003 related to:

• Removal of pre-qualification system for small contracts (<RP 50 Billion), and move towards a post qualification system for all contracts

• Public disclosure of results of bid evaluation, name of the winning bidder and contract scope/price.

According to P2TPD consultant who asessed procurement system in 2003, Kabupaten Solok was clasified as “medium risk”. Procurement system has reffered to Presiden Decree (Keppres) No. 18/2000. But there still have been practices that inconsistent with Kepres principle: • 70 % of procurement done through

bidding, and 15 % of it done through direct appointment

• Kabupaten Solok was identified as one of four Kabupatens that is potential to be “champion” in procurement reform according to criteria : (1) the commitment of the leader to do reform ; (2) at least medium risk quliafication of

Keppres 80/2003 already applied and the implementation quality continued being improve through Integrity Pact activity


Page 5 of 7




procurement system ; (3) experience to implement bidding more than 65% of total procurement.

4.d. Other concrete initiatives in the field of public procurement

no information available Refer to 4 c

5. Capacity Building Trainings/Workshops 5.a. PRSAP Drafting: Number/type of trainings that

have been conducted, amount of participants (M/F), stakeholders input.

Not yet relevan Training of Participatory Poverty Analysis (AKP) I in March 2003

Training of Participatory Poverty Analysis (AKP) II in May 2003

PRSAP formulation Workshop I – July 2003

PRSAP formulation Workshop II – October 2003

PRSAP formulation Workshop III – February 2004

Report document are available in SN

5.b. Perda Drafting: Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input

Not yet relevant No trainings, only review by SN which discussed on regional meeting

5.c. Trainings/Workshops for DPRD: Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input

Some DPRD members participate in training conducted by central government in Jakarta

Not yet conduceted Report of training and feedback from participant was available in National secretariat

Particpian 5.d. Trainings/Workshops on Participatory

Budgeting: Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input

Not data avalilable Has been conducted in Bukit Tinggi ; september 6-9, 2004. 10 people participated

The report of training avalilable in national secretariat

5.e. Other capacity building trainings/workshops Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input

Not data avalilable No information

Page 6 of 7




6. Other Information 6.a. Other concrete initiatives for governance reform

and public services Local government has formulated and legalized Perda of General Allocating Fund for Nagari (DAUN) as consequence of devolution of authority to Nagari

Establishment of Independent Auditor Institution (LPPI)

There was an evaluation of Perda DAUN and Local Government still on reformulating monitoring and public accountability mechanism of DAUN

LPPI has been evaluated as ineffective. Lack of participation in the establishing LPPI is the main cause of ineffectiveness.

6.b. Other concrete impact: (e.g. lower costs of procurement, increased spending for public services)

Insentive System was evaluated as main cause of the discrepancy of income among public servant

Local government has reformed incentive system by enclosing performance base

6.c. Anecdote and comments of stakeholders (Bupati, DPRD members, NGO’s that participated in consultation processes etc.)

6.d. Other programs that are implemented in the Kabupaten (and its quality of implementation)

SFGG-GTZ PPK 2 WSLIC 1

SFGG-GTZ PPK 3 (in preparation process) WSLIC 2 Integrity Pact - TI

Page 7 of 7

Kabupaten Lebak (Banten)







Summary of APBD 2003 revision was published in local newspaper “Radar Banten” on November 2003 Summary of APBD 2004 was published in local newspapers “Radar Banten” and “Satelit News” on March 2004 Summary of Bupati’s accountability report has not been published yet due to political situation

Based on F-Kab monthly report available at the national secretariat Copy of newspaper clippings available at the national secretariat Newspapers circulation covers Banten province area.


The publication of public documents in the local media was not initiated by the local government, but journalists

Publication was made in local newspaper Radar Banten on November 2003 (type of documents available, contact person; no announcement on requirements, costs and time)

Based on F-Kab monthly report available at the national secretariat Copy of newspaper clipping available at the national secretariat


The publication of public documents in the local media was not initiated by the local government, but journalists

No announcement in mass media yet Annoncement is available in each related office/dinas

1.d. Submission of draft local regulation (perda) on public access to decision-making process (participation) to DPRD, that contains assurance of: • Public participation in drafting and finalization

discussion of any perda in DPRD, planning documents and budgeting processes

Not executed yet Kabupaten Lebak has legalized the draft perda on June 2004 becoming Perda No.6/2004 on Transparency and Participation in Governance and Development. Perda guarantees public access to informations from public institutions

Based on national secretariat review Copy of perda available at national secretariat

Page 1 of 8




(including Propeda, spatial plans, Repetada and APBD);



including compliant handling. However, perda does not detail the mechanisme to access the informations. The perda needs to have more technical regulations to be operational

1.e. Submission of draft local regulation (perda) on public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to: • Information related to discussion on public

policies in DPRD; • Planning documents (Propeda, Renstra,

Repetada, and spatial plans); • Draft and final documents of all perdas,

budget (APBD) and budget realization reports;


Not executed yet Lebak has combined perda on participation and transparency. On transparency, perda guarantees public access in decision making, including the mechanism in delivering public aspiration and handling complaint (through transprency and participation committee)



Not relevant The perda needs to have more technical regulations to be operational. Some adjustments needed: public right in information; needs more clarity on informations that is excluded


Page 2 of 8





Not relevant Public consultation in kabupaten level was cunducted by Legal Section of Pemda on April 2004 with 70 participants from executive, legislature, academics, NGOs, and community. Some issues arose was: (i) agreement on the importance of the perda; (ii) agreement on the importance of transparency and participation (TP) committee; (iii) discussion on recrutment of member of TP committee. DPRD also cunducted a public consultation in DPRD building on May 2004. Draft perda dissemination was conducted before and after legalization process through local media including radio, banner/sign board, local newspaper. Complete version of the perda was disseminated in Radar Banten on June 2004.

Based on F-Kab Monthly Report available at national secretariat Copy of newspaper clipping availabe at national secretariat

1.h. Implement enhanced public participation in annual planning and budgeting that covers: • Set budget ceiling as an input for dinas and

kecamatan planning discussions • Allocate block grant to village/kecamatan

level. The information of the allocation and guidelines are disclosed to public.



Block grant to village has been alocated since 2001 with amount Rp.20 million/village. However, no specific regulation, such as perda, to administer this block-grant. Guidelines/manuals of the block-grant based on Bupati’s Decree. No new initiative of the existing planning mechanism (Musbangdes, UDKP and Rakorbang) was introduced to increase participation.

Lebak has passed a Perda No.4/2003 on Fiscal Transfer Between Kabupaten and Village (or block grant). In the perda, village share is define at least 10% from regional taxes, regional levies, fiscal transfer central-kabupaten and province’s tax-sharing. The guidelines/manuals of this block grant is regulated in Bupati’s decree No improvement on planning process

Based on F-Kab monthly report available at national secretariat Copy of perda is available at national secretariat


Banten Strategic Development Institute (LSPB) in cooperation with LP3ES has initiated to develop CBO (community base organization) to disseminate information regarding APBD (local

LSPB activity is not much heard lately. On August 2003, for the first time, government has disseminated some perdas (on drugs, block-grant, and alcohol) through local newspapers. It was planned

Page 3 of 8




budget). Only one CBO has established in Kecamatan Maliping.

to continue publication of perda In one direct conversation, a member of DPRD has said that DPRD has open an opportunity for community to criticize Bupati’s election requirements


Not available Community initiatives: (i) conducted a forum called “APBD review” with resource persons from executive, legislative and community leaders; (ii) radio talk show on public policy, initiated by Lebak Students Family (Kumala) DPRD initiatives: (i) election of DPRD Head was done publicly (ii) discussion on DPRD’s code of conduct was done publicly Pemda initiated a serial discussion on Renstra (strategic planning) with multi-stakeholders including P2TPD forum Civil servant recruitment in 2004 was done by establishing: (i) independent monitoring team, (ii) opening a complaint mail-box regarding recruitment process, (iii) simpilfied requirement and applicants just have to submit application, CV and certification (previously applicants should also submit health information letter, yellow card from man-power department, etc.)

Based on F-Kab monthly report available at the national secretariat


Not relevant Thought APBD 2005 has not legalized yet, the integration of PRSAP process is in progress. Some action plan of PRSAP was mentioned in dinases proposals, strategy and priority, and AKU (general policy directive).

Based on F-Kab monthly report available at the national secretariat

Page 4 of 8




2. Poverty Reduction Strategy and Action Plan (PRSAP) 2.a. PRSAP will become guideline based on

Perda/SK Bupati is already in place Not relevant PRSAP has not legalized yet, but

integration process has been conducted through some discussion in dinases and come up with some integration alternatives: (i) through AKU, (ii) bappeda sections will combine PRSAP with proposals from dinases, (iii) dinases will include PRSAP in their own proposals.

However, PRSAP substantively is included in those documents (dinases proposals, AKU and strategy and priority list)


Not relevant PRSAP focuses on some issues which is realistic enough to be implemented, but not specifically explain about location, volume of each proposal. It is planned to detail the action plan.


Not relevant Verification to cluster for community assessment was done in March 2003. There was 3 locations. Public consultation I in kabupaten level was conducted in April 2003 with 100 participants (Bupati, head of dinases, DPRD, Camat, community) discussing preliminary analysis result and agreement on location for community assessment Community assessment was conducted in July 2003 in 3 locations with about 40-60 participants.

Based on F-Kab monthly report available at national secretariat

2.d. Other concrete initiatives to reduce poverty Pemda has established micro credit institutions such as Sub-district Financial Institution and Community Credit Bank to help small-enterpreneurs to get capital

Investors is required to use local manpower at least 70% of its employee.


Reform Commitee Not yet established Not yet established No ILGR intervention yet

3.b. Provide an appropriate enabling legal The Perda on financial management is Bupati’s decree on system and procedures No ILGR intervention yet

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framework for financial management reforms, by issuing a local regulation (perda) on the Principles of Regional Finance in line and a Bupati’s decree (SK) on the policies, systems and procedures for the preparation and execution of the APBD, in accordance with existing central regulations.

available (Perda No 21/2002). Review on the regulation indicates that around 60% to 70% of the substance has been in compliance with ILGR governance framework

for budget formulation and implementation has been legalized (Bupati’s decree no.2/2003). The substance is relatively similar with the perda, 60% to 70% compliance with ILGR governance framework. Since 2003, Lebak has been using performance budgeting based on Kepmendagri 29/2002.

Based on F-Kab monthly report available at national secretariat Copy of Perda and Bupati’s decree are available at national secretariat.

3.c. Revenue Generation Framework No revenue generation framework yet, but some initiatives has been implemented, especialy on levies in attempt to reduce community burden

Some related regulations or documents: (i) bupati’s decree on separation of local cash function, (ii) periodic reconciliation report; (iii) bupati’s decree on opening local cash and unit-work account, (iv) bupati’s decree on submiiting tri-quarter report

Based on roadshow, March 2004

3.d. Other concrete initiatives for financial management reforms

Training for financial management aparatus on managing local financial management.



procurement reform No information available Not executed yet No ILGR intervention yet


Not yet existent No Bupati’s decree yet, but procurement is bases on Keppres 80/2003

No Intervention yet from ILGR

4.c. Implement provisions of Keppres 80/2003 related to: • Removal of pre-qualification system for small

contracts (<RP 50 Billion), and move towards a post qualification system for all contracts


Some local entrepreneurs believed that pemda has not fully implemented Keppres: not every procurements done by open bidding.

Local entrepreneurs think that bidding has more open than previous years, though some “closed bidding” still happen


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Field assessment by ILGR consultant concluded that procurement practices in Gowa can be categorized as having a “quite high” risk: part of procurement system does not follow the existing regulation, and hence become ineffective Procurement practices often not considering Keppres 18/2000, because of intervention from local enterpreneurs At the time of assessment, 50% of procurement used open bidding methods, 25% used” direct appointment”.

Pemda has published procurement activities in local newspaper, i.e. on P2PMD project in Daily Fajar Banten on April 2004.




Not relevant Training for PPA-I on February 2003 with 4 participants (including one woman) Training for PPA-II on April 2003 with 6 participants (including one woman) PRSAP workshop on July 2003 with 6 participants (including 2 women) PPA workshop (paralel with T&P workshop) on September 2003 with 17 participants discussing (i) PPA assessment and analysis result, (ii) draft PRSAP. The discussion concluded problem statement of poverty from each clusters



T&P workshop (paralel with PPA workshop) on September 2003 with 17 participants discussing: (i) review and evaluation of activities that has been implemented, (ii) draft perda, (iii) action plan of T&P, and (iv) public consultation


5.c. Trainings/Workshops for DPRD: Number/type of trainings that have been conducted, amount of participants (M/F),

It is planned to conduct the training in December with 50% of DPRD members

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stakeholders input 5.d. Trainings/Workshops on Participatory

Budgeting: Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input


LPSM was conducted a training on Community Empowerement on Public Policy Formulation on January 2003. Agreement made was to establish a forum as a room for stakeholders of Lebak to discuss public issues



and public services On january 2004, Bupati declared to

implement one-roof service for licences. But no realization yet.


New Price Unit standard in procurement has increase budget efficiency to about Rp.17 billion per year



SCBD from ADB KDP UPP P2MPD

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Ngawi Local (East Java)

ILGR Pre-Investment Monitoring and Evaluation Results Updated: November 2004






The summaries of the budget have been published in the bulletin Prima.com Feb. 03, 2004 The format of accountibility report is still being discussed.

Copy of newspaper clipping available at the National Secretariat (NS). The bulletin is distributed to all Village Representative Councils


Most of the public document such as local budget, accountability report of the bupati, middle term development planning, spatial planning, etc. cannot be accessed by the community

Document of General Policy Direction was distributed to the participants of the RAKORBANG. The participants consist of bureaucrat, legislative members, Sub-district Head, Education Council, NGO, mass organisations, and academicians. The Bupati issues Bupati Decree No 188/127/415.011/ 2004 on Oct. 28, 2004 on the formation of public sphere. This decree guarantee that community can access public documents. It is actually derived from the draft of Perda on Transparency and Participation.

Impact of the decree has not been known because it is just recently issued. Copy of Bupati’s Decree is available at the national secretariat.


The local government published a brochure on how to get business licenses, ID cards, birth certificate, building permits and other services. The brochure is availabe in the Public Serving office (Kantor Pelayanan Masyakat).

The local government continues publishing the leaflet of procedures to get services (type of services, procedures, requirements and time, but no information on cost) and available in the Public Serving Office (Kantor Pelayanan Masyakat).

Example of the brochure is available at the NS.

1.d. Submission of draft local regulation (perda) on public access to decision-making process (participation) to

Not yet in place Ngawi formulated a combined perda of transparency and participation Draft perda transparency and public

Former draft of Ranperda (March 2004 version) is available at the NS.

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DPRD, that contains assurance of: • Public participation in drafting and

finalization discussion of any perda in DPRD, planning documents and budgeting processes (including Propeda, spatial plans, Repetada and APBD);



participation is still being discussed in the Law Section office before submitted to the DPRD. Transparency in the perda covers information in processing and result of public policy as mentioned in column 1.

Result of review of is also available at the NS.

1.e. Submission of draft local regulation (perda) on public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to: • Information related to discussion on

public policies in DPRD; • Planning documents (Propeda,

Renstra, Repetada, and spatial plans);



Not yet in place Ngawi formulated a combined perda of transparency and participation Draft perda transparency and public participation is still being discussed in the Law Section office before submitted to the DPRD. Form of participation regulates in the perda including accepting input, idetifying opportunity and problem, complain handling, etc. as mentioned in column 1.

This statement is based on the Ranperda version March 2004. Copy this Ranperda is available at the NS.

1.f. Quality of (draft) Perda on Transparency and Participation (specific, logic, realistic to implement or

Irrelevant. The perda still needs to have more technical regulations to be operational

This is based on the review result which available at the NS.

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is a supporting guideline necessary) 1.g. Drafting process on Transparency and

Participation Perda: Number and kind of public consultation processes, (kabupaten, kecamatan or village level), amount of participants, changes in the draft that result out of inputs from the community during the public consultation proceses.

Irrelevant Wider public consultation on draft perda has not been conducted yet. Only discussions in NGO forum which was attended by approximately 40 participants from ALAD, NU, Forum Perempuan, BPD (Village Representative Council), LPMD. One of the ideas came up from this forum, which has been accomodated in the draft perda, was the form of participation (passive, active, etc).

Monthly Report of the Local Facilitator.

1.h. Implement enhanced public participation in annual planning and budgeting that covers: • Set budget ceiling as an input for

dinas and kecamatan planning discussions



• Public meetings on inter-dinas programming

• Public consultation on final draft of APBD

The local government has allocated a blockgrant known as Dana Pembangunan Desa/Kelurahan (DPD/K) to villages where each village receives Rp. 25 millions. The regulation used to run the DPD/K is Bupati Decree not Local Regulation (Perda). The community have never been involved in the APBD formulation. Their participation is mainly through discourses in the newspaper.

The blockgrant is still provided to the village using the same regulation. PPA stakeholders is now being asked to give inputs in the AKU formulation. Community components that are invited to the RAKORBANG more various. Prior to the this time, community components who are Sub-dictrict head and also Village head, but now NGO, People’s organization, and others are invited as well.

Copy of DPD/K 2003 available at the NS.


Not yet in place Local government plans to announce the test result of the recruitment of civil servants. This plan is still being discussed among the beraucrats.


Not yet in place

Local government invites NGO to form an independent group to monitor the civil servant recruitment process. At the present moment this independent group is still working to

Page 3 of 8




gather information related to the recruitment procress.


Irrelevant Members of PPA team monitor that 30 percent of the PRSAP is adopted in the AKU.

NS has not yet recived result of monitoring taken by PPA.

2. Poverty Reduction Strategy and Action Plan (PRSAP) 2.a. PRSAP will become guideline based

on Perda/SK Bupati is already in place Not yet in place.

Bupati Decree on the PRSAP is issued in November 2004

Copy of Bupati Decree has not yet been sent to NS. Copy of PRSAP available at the NS


Irrelevant In general, the PRSAP is quite detail but it needs to be prioritized to make it more focus in reducing poverty.

Based on the review result by NS.


Irrelevant PPA is being done in 8 villages which represent 4 clusters that forest cluster, mountain, flat area, and urban. The PPA is implemented by PPA team consists of 18 persons who represent CSOs such as women organization, NU, Muhammadiyah, NGOs,professionals association, and members of legislative as well as bureaucrats. The are 2 public consultations. The first is for verifying community issues that is attended by 60 persons among them are village officials and ordinary people men and women. And the second is to disseminate Poverty Reduction Strategy. Numbers of participants attends to the second public consultation is 85 persons and they are coming from different background that is bureacrats, members of legislative, NGOs, women groups, professional associations, people’s organization, BPD, and many

Page 4 of 8




others. 2.d. Other concrete initiatives to reduce

poverty Local government implement a micro credit program called Pengembangan Ekonomi Rakyat (PER). Local government initiate community based forest management or known as Pengelolaan Hutan Berbasis Masyarakat (PHBM) together with Perhutani, a national base forestry company, to eradicate poverty. The pilot project is done in 8 villages out of 85 villages surrounding the forest. Nonetheless, there is no clear evaluation concerning this program yet.

PER program is still running but it is stuck due to crdit idle because of the weaknesses of the implementors, mostly NGOs. PHBM program is also running but it has not yet replicate to other villages.

3. Financial Management 3.a. Establishment of a Financial

Management Reform Commitee Not yet established Not yet established No ILGR intervention yet.

3.b. Provide an appropriate enabling legal framework for financial management reforms, by issuing a local regulation (perda) on the Principles of Regional Finance in line and a Bupati’s decree (SK) on the policies, systems and procedures for the preparation and execution of the APBD, in accordance with existing central regulations.

Perda on P3KD not yet established Bupati Decree on policies, systems, and procedures for formulation and implemntation of APBD not yet established.

Local government legalizes Perda No 12 Tahun 2004 on regional finance Local government issues Bupati Decree No. 050/00.59/415.015.2004 on instruction of implementation of development projects in fiscal year 2004.

Copy available at the NS.

3.c. Revenue Generation Framework Not yet established. Most of local regulations in these years are functioned to increase the local revenues through tax and retribution.

Data not available No ILGR intervention yet.


Data not available Data not available

4. Public Procurement 4.a. Establishment of a work unit as focal

point in procurement reform Not yet established Not yet established No ILGR iontervention yet

4.b. Issue an SK Bupati on the systems Not yet established Data not available No ILGR iontervention yet

Page 5 of 8




and procedures for implementation of the Keppres 80/2003, with special attention to the following: Adoption of standard bidding documents, establishment of mechanism for procurement complaints and enforcement of sanctions.

4.c. Implement provisions of Keppres 80/2003 related to: • Removal of pre-qualification system

for small contracts (<RP 50 Billion), and move towards a post qualification system for all contracts


Irrelevant Data not available Data not available at the NS


Assessment result about procurement done by ILGR’s consultant in 2003 has placed Kabupaten Ngawi in the “medium” of risk category. The reason is because procurement system has been implemented but it is inconsistently implemented so that less effective. 60 % of the procurement is executed thorugh bidding mehods and 30% of it done through direct appointment.

Report of Assessment Result is available at the NS. No ILGR intervention on procurement yet.

Page 6 of 8




5. Capacity Building Trainings/Workshops 5.a. PRSAP Drafting: Number/type of

trainings that have been conducted, amount of participants (M/F), stakeholders input.

Irrelevant First PPA training held in Feb 2003 attended by 5 persons consists of bureaucrats and CSOs. Focus of training is on the kabupaten poverty analysis and clustering which is going to be used as sites for data gathering. Second PPA training held in April 2003 attended byu 10 persons of PPA team. The training is to intorduce tools that will be used in the data gathering at the community level. First PRSAP formulation workshop held in August 2003 solely attended by 18 persons of the PPA team. The workshop is directed to formulate Kabupaten poverty reduction strategy. Second PRSAP formulation Workshop attended by 30 persons consists 18 persons member of PPA team plus Dinas and CSOs. The workshop is focused to formulate action plan of the strategies.


No data available Legal drafting course for Law Section officials delivered by the province.


No data available Workshop for DPRD to be conducted in December 2004. it is expected 28 – 30 members of DPRD from various fractions and commission will participate.

5.d. Trainings/Workshops on Participatory Budgeting: Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input

No data available Self-assessment on participatory budgeting has been conducted by the local facilitator and attended by 60 persons from different background i.e, executive, members of comssion B and D of the DPRD, NGOS, and others, attend it. Training/workshop on Partcipatory Budgetting will be conducted next January 2005.

Page 7 of 8





BPD training delivered by Lapera Good governance training for NGO activists delivered by USC Satunama.

6. Other Information 6.a. Other concrete initiatives for

governance reform and public services No information No information


No information No information


No information No information


KDP Gerdutaskin Food Security Program

Local government adopts the KDP model and next fiscal year will be implemented in one kecamatan and so allocation for KDP will increase up to 2 billions. Gerdutaskin and food security program will be continued but no further on budget for these two programs availabe.

Page 8 of 8

Kabupaten Lamongan (East Java)





summaries of budget and Bupati’s accountability speech (LPJ) in mass media

Publication of summaries of Budget and Bupati’s accountability speech (LPJ) were done on journalist’s own initiative (not local government’s initiative)

Summaries of budget and Bupati’s accountability speech (LPJ) have been published in “Radar Jawapos” and “Suara Lamongan” newspapers. It is also accessible to the public through the local government’s website.

“Radar Jawapos” circulation covers three kabupatens, i.e. Tuban, Bojonegoro, and Lamongan. “Suara Lamongan” is a government owned newspapers distributed to all villages (475 villages) in Lamongan See: http://www.lamongan.go.id

1.b. Announcement in mass media of the availability of the following documents (locations, requirements, time, and the costs to get it): budget, Bupati’s accountability speech, regional strategic plan (Propeda, Renstra), annual plan (Repetada, AKU and Strategies and Priorities), local regulations and spatial plan are available at the designated location(s).

Not yet available Almost all summaries of public documents have been published in “Radar Jawapos” and “Suara Lamongan” newspapers. Announcement on the types of documents accessible to the public and where they can be obtained (Letter No: 050/489/413.201/2004) have been disseminated through the printed media and government website.

F-Kab’s Monthly Report, July 2004 See: http://www.lamongan.go.id


Usually, announcement on the procedures placed on the location of service provision.

Procedures to obtain licenses and ID card have been published in “Radar Jawapos” and “Suara Lamongan” newspapers

See 1a. F-Kab’s Monthly Report, July 2004


Not exist Draft of local regulation on Transparency and Participation is currently being edited by the T&P working group. The result will

F-Kab’s Monthly Report, July 2004

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be submitted to government’s legal bureau for final check before being submitted to the local parliament.

Draft of local regulation on Transparency and Participation include mechanisms to obtain public documents, and informations that need to be publicly disseminated. It is also explained in detail types of documents to be publicly disseminated and mechanism of public complaint.

Based on review of the draft by ILGR national secretariat and information provided by FKab

1.e. Submission of draft local regulation (perda) on public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to:





Not exist Draft of local regulation on Transparency and Participation is currently being edited by the T&P working group. The result will be submitted to government’s legal bureau for final check before being submitted to the local parliament as an executive’s proposal.

Several issues need to be stipulated in detail, among others: details on rights and obligations of the public and public agencies; timeline for the formation of Transparency Commision, mechanism for mediation and post-mediation by the Transparency Commission.

F-Kab’s Monthly Report, October 2004

See review of the draft by ILGR national secretariat

1.f. Quality of (draft) Perda on Transparency and Participation (specific, logic, realistic to implement or is a supporting guideline necessary

Not relevant See 1d and 1e See review of the draft by ILGR national secretariat

1.g. Drafting process on Transparency and Participation Perda: Number and kind of public consultation processes, (kabupaten, kecamatan or village level), amount of participants, changes in the draft that result out of inputs from the community during the public

Not relevant A working group was formed to prepared the work plan and identify problems in several areas in the Kabupaten. At the initial T & P workshop only one parliament’s member is present. The formulation of the local regulation’s

F-Kab’s Monthly Report, October 2004

Halaman 2 dari 8




consultation proceses. draft was based on the field assessment and public consultation to gather the aspiration of the community, which was followed by serial discussion involving CSO and working group members. However, due to the time constraint, the public consultation was held only in one village. The draft prepared by the working group was consulted to the public in a village meeting attended by around 25 people. The consultation results show that public service provision has not been transparent enough, community would like publication for activities planned to be implemented in the villages, and the fund allocation for villages need to be increased. The input from the public consultation is mostly concerning public services.






Not yet existent The annual planning and budgeting cycle has used aspiration gathering mechanism, however there is little public control over the process.


No information available Publication of leaflet on procedures for obtaining licenses, including information on the required cost, and estimated time.

F-Kab’s Monthly Report, July 2004

1.j. Other concrete initiatives to increase

participation

1.k. Budget quality: Budget is clearly allocated for Not relevant PRSAP has been used as a reference in the F-Kab’s Monthly Report,

Halaman 3 dari 8




priorities in accordance with PRSAP preparation of AKU (General Policy Direction) document, AKU document is a reference document for annual planning and budgeting process.

August 2004


Perda/SK Bupati is already in place Not relevant There is a plan for PRSAP to be provided

legal status through the Bupati’s decree. F-Kab’s Monthly Report, July

2004


Not relevant Strategy and action plan has been specific and detail enough, however it still requires prioritization on activities that should become the main focus for poverty reduction

Based on review by ILGR national secretariat


Not relevant PPA (Participatory Poverty Analysis) was performed in four regional clusters, i.e. lime rock ( 1 village), low land agriculture (1 village) , swamp area (1 village) and coastal area (1 village). PPA was conducted by PPA working group consisted of 17 members from various sectors, among others; government officials, NGOs, women’s organization, and religious boarding school students. Public consultation was held in each clusters to defined the community issues. Each public consultation attended by around 75 people from various section of the community, among others, village officials, community leaders, and poor people themselves. Unfortunately, the data collected is not well documented. Another location was then added to conduct community assessment. Kabupaten’s level PRSAP consultation was attended by around 70 people consisted

PRSAP documents Working group consists of representatives from the legislatures, executive, mass organisation and local universities. Local CSO involvement is rather passive.

Minutes of the consultation is available at ILGR secretariat.

Halaman 4 dari 8




from various sections, among others, government executive, village officials, village representative and poor people themselves.

2.d. Other concrete initiatives to reduce poverty Village Block grant have existed in the form of village assistance fund in the amount of Rp. 52 million per village.

The village assistance fund (DPD/K) is still functioning but being criticized by CSO because the mechanism for fund planning, utilization, and disbursement do not fulfill the needs of village community.


Reform Commitee District level committee established Effort to improve the role of the committee

to reform financial management Copy of SK to establish the committee is available in SN No Intervention yet from ILGR


Local regulation No 2/2002 regional financial management have been enacted in May 2002. Review on the regulation indicates that around 60% to 70% of the substance has been in compliance with ILGR governance framework.

In 2003, a manual of financial management has been issued as a technical guidelines for the local regulation.

No Intervention yet from ILGR The regulation and the manual are available at ILGR secretariat

3.c. Revenue Generation Framework Not yet available Not yet available No Intervention yet from ILGR

3.d. Other concrete initiatives for financial

management reforms


procurement reform Not yet established The existing team’s function is upgraded

refer to Kepres 80 Copy SK is available in SN No Intervention yet from ILGR

4.b. Issue an SK Bupati on the systems and procedures for implementation of the Keppres

A Bupati decree existed on guidelines for public procurement based on

A draft local regulation have been prepared on the documentation of procurement

No Intervention yet from ILGR

Halaman 5 dari 8




80/2003, with special attention to the following: Adoption of standard bidding documents, establishment of mechanism for procurement complaints and enforcement of sanctions.

Keppres 18/2000




Not Relevant No Intervention yet from ILGR


Field assessment by ILGR consultant concluded that procurement practices in Lamongan can be categorized as having a “medium” risk: procurement system has been implemented in reference to the existing regulation, but have not been consistent, and hence not effective. At the time of assessment, 50 % of procurement used open bidding methods, 10% used direct selection”, and 25% used” direct appointment” while the rest are self-implemented ny the relevant agencies.

Halaman 6 dari 8






Not Relevant PPA I Training – Februari 2003 and March 2003. This training focused on kabupaten poverty analysis and the identification of clusters to be used as locations for data collection PPA II training – April-May 2003. This training focused on learning of PRA tools to be used for data collection at the community level. PRSAP formulation workshop I– Agustus 2003. The workshop focused onthe formulation of Kabupaten Poverty Reduction strategy. PRSAP formulation workshop II– November 2003. The workshop focused onthe formulation of Kabupaten Poverty Reduction action plan.

Minutes of the training is available at ILGR secretariat


No data. Legal drafting training for CSO attended by four people

Minutes of the training is available at ILGR secretariat


No data New DPRD members has received initial training from provincial government ILGR plan to held DPRD training in January 2005 due to the currently hectic schedule of the members .


No information available Planned and scheduled to be held in February 2005


Training of the village councillor to prepare the village strategic plan facilitated by a local NGO (Prakarsa).

Not yet existent

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and public services No information available No information available


No information available No information available


No information available No information available


KDP UPP WSSLIC

KDP UPP WSSLIC Gerdu Taskin WSSLIC P2MPD

Halaman 8 dari 8

Kabupaten Boalemo (Gorontalo)







The summaries of the accountabilty report and budget have not been published The publications are still based on the initatives of the journalists

Copy of newspaper clipping available at the national secretariat


The budget and accountability report of the bupati were still regarded as being “sensitive documents” –access to these documents by the community has not been easy

Up to July 2004, only Bappeda and the Revenue agency have informed about the availability of documents through an information board Bappeda announced that various documents, like the accountability report, Strategic Plan and APBD can be accessed at their office. However, these documents are not yet available at the Bappeda office The revenue agency has put down very detailed the various kinds of district revenues, its use and amount.

Information provided by the F- Kab


Not yet executed Information regarding the procedure of birth certificate and ID cards is displayed at the registrars office Public Works office already provides special service space for the processing of building permits, contracts, project payments, customer complaints etc. In addition, one staff is designated for each service-kind. It is planned that the Public Works Office produces a brochure about licence and service mechanisms

Information provided by F-Kab


Not yet in place The draft Perda on transparency of all governance aspects has already been passed on August 24th, 2004, becoming

Copy available at the National Secretariat

Page 1 of 11








Perda No. 6/2004 The Perda does not detail which documents should be available to the public. The Perda only states that the all public institutions must provide access to public information at all times (article 11)

1.e. Submission of draft local regulation (perda) on public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to: • Information related to discussion on public

policies in DPRD; • Planning documents (Propeda, Renstra,

Repetada, and spatial plans); • Draft and final documents of all perdas,

budget (APBD) and budget realization reports;


Not yet in place The draft Perda on participation in governance issues has already been passed on August 24th, 2004, becoming Perda No. 7/2004. Perda guarantees public participation as mentioned in column 1, except for procurement matters

Copy available at the National Secretariat


Not yet relevan Review of Perda on Transparency The Perda leaves the obligations of the public institutions unclear regarding the active dissemintation of public information. The procedure as well as media to distribute the information is not clear, also the kind of meetings that can be attended by the community On the other side, article 12 on information

Result of review in the National Secretariat

Page 2 of 11




that is obligatory to be published as fast as possible seems to be too ambitious, because public institutions cannot distribute all “sensitive” informations The role of the “transparency commission” in article 24 is also too ambitious, because it will become a judicial body. This commission should actually have the role of a mediator, and not be in the role to solve problems themselves, as there are other legal ways in case mediation fails, e.g. mutual agreement. In addition, the link between “objections” and handling mechanism (article 33, which will be brought to the transparency commission ) and the “complaints” and handling mechanism (article 31, which will be brought to the higher ranking official inside the public institution) seems unclear The perda needs to have more technical regulations to be operational

Review of Perda on Participation The definition of participation is very broad, instead of focusing on the participation in the budgetting and policy making process Not very specific in defining citizen's right (article 4) to get information, filing in complaints, and monitoring development implementation Article 8 elaborates the characteristics of participation but falls short in the procedures (article 10 only deals with live dialogue) The perda needs to have more technical regulations to be operational

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Not yet relevant Public consultations have been conducted various times, however the amount of participants was limited, i.e: In April 2003, 22 participants (12 members of the executive, 10 community representatives) participated in a meeting to develop a common perception about the content of the draft perda In December 2003, 46 participants (30 members of the executive, 3 representatives from the sub-district level and 13 community representatives) to agree on the academic paper of the draft perda Also in December 2003, public consultation were conducted on cluster level in two locations (paralel with public consultations on PPA) to socialize the draft perda. In January 2004, 25 participants (12 members of the executive, 12 members of the multi-stakeholder forum Pomaya, 1 journalist) to decide on the action plan of the transparency and participation perda. The local parliament perda discussion session was made public-various NGO members and students attendended the session. The community wanted to implement this Perda directly in 2005, whereas the executive prefered to prepare the institutions first in 2005 and only fully implement this perda in 2006. Finally, it was agreed on the executives preference.

Based on monthly report of the F-Kab (report is avaiable in national secretariat)

1.h. Implement enhanced public participation in annual planning and budgeting that covers: • Set budget ceiling as an input for dinas and

No new initiative of the existing planning mechanism (Musbangdes, UDKP and Rakorbang) was introduced to increase participation.

In January 2004, the DPRD published its main ideas on the annual budget policy for the fiscal year 2004 in a local tabloid as an answer to the annual budget policy as

The publication in a tabloid only covers a limited scope The Bupati is very keen on

Page 4 of 11




kecamatan planning discussions • Allocate block grant to village/kecamatan

level. The information of the allocation and guidelines are disclosed to public.



No access for the community to any budget control mechanism Through the MCRM program in cooperation with ADB, the Kabupaten were drafting a perda on the management of maritine resources through a participatory process, involving NGO’s and between local government agencies, also on sub-district level. The drafting of this Perda created synsergies for the drafting of the Perda on transparency and participation.

proposed by the Bupati earlier. In this tabloid, the agreement on the budget policy between Bupati and DPRD was also published. The draft perda on the management of maritine resources (MCRM program) is still in the draft stage and was lately discussed during a public consultation in August 2004 In September 2004, a meeting was conducted to review APBD 2005 plan, especially with regard to the integration of the PRSAP. This meeting was attended by around 100 people.

receiving technical assistance on village allocation funds (initiated by the local government through a workshop on participatory budgeting). It is planned to allocate village funds of Rp. 100 million per village in the 2005 budget


The DPRD and NGO’s are involved as direct observers to the recruitment process of civil servants.

The Bupati has passed the instruction No. 14/2004 on the transparency of public services. The recruitment process of civil servants in 2003 was conducted in a transparent way. The process of verifying the answers was supported by the judiciary, the police and ‘pamong praja’ on policy office and the community was able to directly witness the process. The result was direclty anounced by the Regional Secretary.

Based on the report of the F-Kab

A copy ot the Bupati instruction is not yet avalable in the National Secretariat


The drafting process of the strategic plan was done through consultation processes that involved various stakeholders and was conducted on kabupaten and sub-district level. A public hearing was initiated between the village council with school principal, sub-district official and eduction council on subdistrict level to discuss the education program (in the beginning and end of school year). The DPRD established an informal

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community monitoring mechanism, and the findings were presented to the DPRD (where necessary, transportation allowance was provided)


Not relevant The Forum that review APBD 2005 plan can be regarded as one tool how the PRSAP can be integrated into the APBD 2005.


Perda/SK Bupati is already in place Not yet available A Bupati Decree on the PRSAP was passed

in September 2004 The PRSAP is available in the National Secretariat


Not relevant One problem statement in the PRSAP encompasses many problems leaving the document unspecific Many of the set targets are unrealistic, because the anticipation of the obstacles that were identified for an alternative strategy were not clear enough

Based on a review in the National Secretariat


Not relevant The first public consultation was conducted in April 2003, which cannot be regarded as a public consultation, because only 14 people from the executive participated to discuss about secondary poverty data of the agencies that were present. Public consultations on cluster level were conducted on two different places in December 2003. The first consultation was attended by 86 participants form the community, and the second one was attended by 29 community members. During the meeting, the main problems were discussed and strategies for its resolution were suggested

2.d. Other concrete initiatives to reduce poverty A project provides micro credit to poor families between 1999-2003 (using

Generally, the programs in column 2 are still on-going

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deconcentration funds). This money was used as revolving funds for the poor groups of around 20 people that were mostly women A welfare program for poor families that provided working capital in form of soft-loans through the groups A program for the increase of the living standards for the coastal communities facilitated the establishment of small cooperatives who will later benefit from the revolving funds that will be managed after reaching a certain self-management level A program for adequate housing. The local government provided subsidies for poor community members to build a house of around Rp. 4-6 million




The Perda on financial management does not yet exist Bupati decree does not yet exist

In 2004, the DPRD already passed the Perda No. 1/2004 on Financial Management. However, the substance does not yet fulfill all requirements of the ILGR reform framework No Bupati decree has yet been passed for the Perda on Financial Management

3.c. Revenue Generation Framework Not yet established Some Perdas were drafted in 2002 in the framework to increase local owned revenues through taxes and levies (intensification as well as extensification)

Not yet available The increase of local owned revenues was achieved through: every echelon 2 civil servant who has an official car avaiable has to pay Rp. 20.000/month as a fee, and echelon 3-4 civil servants have to pay a fee

No ILGR intervention yet

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of Rp. 5.000/month for each official motor cycle. Since open tendering is applied, revenues from 3rd parties have decreased dramatically.


Starting in 2003, a double-entry acounting system was established

The Bupati applies support for operational performance (to be paid every month in addition to salary) in order to comprehend the abolishment of ‘SPPD’ (Official Travel Instruction Letter) for echelon 2

The Bupati has a high commitment to use the budget efficiently. He did not spend all the posts of the routine budget of the 2004 APBD and retained about Rp. 400 million


procurement reform Not yet established Not yet established No ILGR intervention yet


Not yet established Not yet established




Not relevant Since 2004, the following steps were introduced: Pre-Qualification was abolished The bidding results are spread widely (contract), including name of contractor, scope and volume. Geographic limitations for bidders were abolished.

The Bupati built the “Team 5” consisting of institutions other than public works (Bappeda, Assistent of the Regional Secretary) to verify the outcome of the bidding committee. This arrangement creates conflicts as there are bidders that were excluded by the “Team 5”

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from the bidding result. 4.d. Other concrete initiatives in the field of public

procurement All procurement is conducted through direct appointment without competitive bidding. 90% through direct appointment and 10% self-managed The project implementation is monitored by an NGO using a format that was developed by Bappeda. The monitoring result is reported to the Bupati /Head of Bappeda and exposed in the Gorontalo Post newspaper for wide distribution. The result of the procurement assessment has listed Boalemo in the category “high risk”: To a large extent, the existing system is not applied so that the objective might not be achieved

Since 2004, the local government has started to implement procurement procedures that are in line with Presidential Decree 80/2003

Positif impact of participation in ILGR



Not relevant Training Participatory Poverty Analysis (PPA) I - March 2003 Training Participatory Poverty Analysis II - April-Mey 2003, also participating 8 members of the executive and community representatives Workshop on PRSAP formulation I – July 2003 Workshop on PRSAP formulation II – December 2003, attended by 13 participants (5 of the PPA working group, 5 from esecutive, 3 community representatives) to discuss on the revision of the problem statements and poverty reduction strategy

The training report and the participant feedback is avaialble at the National Secretariat

5.b. Perda Drafting: Number/type of trainings that have been conducted, amount of participants

No data available A training on legal drafting and the compilation of an academic paper was

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(M/F), stakeholders input facilitated by the Head ot the Legal Drafting Center, Law Faculty, University Sam Ratulangi of Manado in June 2003


No data available It is planned to conduct trainings for DPRD members in December 2004, and will be attended by around 10-13 DPRD members (50% of the DPRD members to avoid an activity vacuum for the time of the training)


No data available This workshop has been conducted in November 2004, and was attended by 12 participants (members of the executive, 1 DPRD, 3 NGO’s, all being men)

The workshop report and the participant feedback is avaialble at the National Secretariat



and public services There were efforts to increase public services through the implementation of the program “First-rate Services” , but nothing can be said about the effectiveness. There is no evaluation result available.

The Bupati passed the Bupati instruction No. 14/2003 on transparency of public services on governance aspects. In June 2004, the regional secretary then distributed a letter stating that all institutions have to provide information about services on a board at each respective agency



Not relevant


PPK It was planned to adopt PPK mechanism in village level planning ADB program MCRM

PPK is till on-going in 3 sub-districts: 2 funded by central government and 1 by local government (in amount of Rp.750 millon)

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The plan to adopt PPK mechanism will be implemented in 2005 MCRM program is also on-going and the recent activity was public consultation in August 2004 to discuss the draft perda on maritine management

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Kabupaten Bulukumba (South Sulawesi)

ILGR Pre-Investment Monitoring and Evaluation Results Updated: November 2004




summaries of budget and Bupati’s accountability speech (LPJ) in mass media

The publication of the accountabillity report and the APBD was not initiated by the local government, but through news coverage of journalists.

A summary of the APBD was published in the regional newspaper, Panrita Lopi

The 2003 budget was pubished in the local media, but the summary of the 2004 accountability report has not yet been published

A copy of the APBD summary clipping is available at the National Secretariat

1.b. Announcement in mass media of the availability of the following documents (locations, requirements, time, and the costs to get it): budget, Bupati’s accountability speech, regional strategic plan (Propeda, Renstra), annual plan (Repetada, AKU and Strategies and Priorities), local regulations and spatial plan are available at the designated location(s).

The public still has difficulties to get access to public documents

Information about the accessibiltiy of public documents through local media

Announcement of the procedure, costs and time to apply for a licence is not yet published through local mass media, although the Bupati instruction already exists

The discussions of the F-Kab with various NGO’s , interest groups and journalists made clear that the accountability report and APBD are made easier accessible , even though many regard this information as unimportant or do not know about it.

Based on F-Kab monthly report (report available at the national secretariat)


Not yet executed There is a Bupati instruction to announce the process, time and cost to apply for a licence. Information about the requirements to receive a licence has been available on an information board, but not in the local print media.


1.d. Submission of draft local regulation (perda) on Not yet existent. The draft Perda on Transparency of A copy of the draft Perda

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public access to decision-making process (participation) to DPRD1, that contains assurance of:

• Public participation in drafting and finalization discussion of any perda in DPRD, planning documents and budgeting processes (including Propeda, spatial plans, Repetada and APBD);



Governance Aspects and Perda on Community Participation in governance aspects is brought to the DPRD and will be passed after final revisions are made.

The draft perda on transparency ensures public access to the following:

Information that is related to policy discussions in the DPRD, planning documents (Propeda, Renstra, Repetada and Spatial Plan), draft and final Perdas, APBD and realization report, accountability report, procedure and practise of information provision, but there is not detailed mechanism, including its follow-up action, to community complaints

is available in the National Secretariat

1.e. Submission of draft local regulation (perda) on public access to information (transparency) to DPRD, which contains assurance and mechanisms of public access to:





Not yet existent The draft perda on participation was united with the draft perda on transparency

Participation covers the aspect of public acces to: Public participation during the drafting and finalization of draft perdas, although at the DPRD; public participation in the planning and budgeting process (including Propeda, spatial plan, Repetada and APBD).

See 1.d

1.f. Quality of (draft) Perda on Transparency and Participation (specific, logic, realistic to implement or is a supporting guideline necessary

Not relevant Realistic and logic enough, but a supporting regulation is necessary to detail the implementation, especially with regard to government procedures.

Based on a review by the National Secretariat

1 The draft perdas on participation and transparency were united into one; this is in line with an agreement of stakeholders

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Not relevant Several public consultations were conducted, before the draft was submitted to the DPRD.







No new initiatives were initiated within the existing planning mechanism (Musbangdes, UDKP, Rakorbang) to increase participation

No access to budget drafting control mechanisms for the community

The planning and budgeting system for the FY 2005 will be improved. The Bupati has already expressed his intention to include the public into the budgeting process for FY 2005, in the local media,



NGO’s have been directly involved to monitor the recruitment process for civil servants.

The local government has facilitated the establishment of an independent team (including NGO’s) to conduct open examinations, the ranking criteria for the test-results were opened to the community, the timeframe between the examinations and the publication of the results was short (3 days) to reduce the chances for corruption.

Now, a declination is happening, as all public servant recruitment is managed by the central government again, without socializing the mechanism.


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Public consultation for the Perda on tax for the construction of traditional boats for the constructors and the associations.

Evaluation of the echelon II is conducted by the lower ranking staff

Public consultation for the RAPBD 2001 was held

Perdas on village democratization (No.11-23, 2001)

Public consultation result: The community has some objections on the amount of tax, thus the Perda was not passed

The performance measurement for echelon II staff and its criterion has not yet transformed to involve the public into this process

The mechanism is not yet clear so that the mechanism can be misused by certain interest groups, however, plans exist to revise this mechanism ensuring involvement of the community for the budget drafting FY 2005.

Changes of the law on regional governance (Law 32/2004) might leave this Perda ineffective.

Bulukumba Baseline document available at the National Secretariat


Not relevant The 2005 budget has not yet come out. For 2004, the matching only went as far as matching the follow-up of the PRSAP with agency proposals, eventhough various agencies (health and education) have already to a great extent adopted the follow-up of the PRSAP into their APBD planning for 2005.

A copy of the document that showas the results of the matching is not yet available at the National Secretariat.


Perda/SK Bupati is already in place Not existent The Bupati decree on the PRSAP was

passed in September 2004. A translation of the Bupati decree and the PRSAP is available in the National Secretariat


Not relevant The alterantive strategy that was offered was detailed enough, eventhough certain activities still need to be broken down into more detail.

The APBD priorities for poverty alleviation activities were not yet identified in the APBD for 2005, because the draft APBD is

Based on review a at National Secretariat

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still in its finalization phase. 2.c. Drafting process of the PRSAP: Number and

kind of public consultation processes, (kabupaten, kecamatan or village level), amount of participants,amount of PPA locations, changes in the draft that result out of inputs from the community during the public consultation processes

Not relevant Three public consultations on kabupaten level, one on sub-district level and 2 times consultation for the villages were PPA’s were conducted (at four locations)


2.d. Other concrete initiatives to reduce poverty There are several poverty reduction initiatives in line with the Renstra: Establishment of business groups, develop commodity plantations and strenghten community organizations, provide loans to farmers and trainings for farmer groups, welfare of fishery community

No poverty reduction programs were yet identified, but with intensive involvement during the PRSAP drafting, the health and education agency adopted to a great extent the follow-up activites of the PRSAP as a guideline for the annual plan (FY 2005).





Perda on financial management is not available

Bupati decree is not available

In 2004, the DPRD had already passed the Perda on Financial Management, which substance covers only about 60-70% of the ILGR governance reform framework

The Bupati decree was announced after the Perda was passed

No ILGR intervention yet

3.c. Revenue Generation Framework Not available. Some Perdas that were drafted in 2002 refer to the increase of local owned revenues through taxes and levies

Not yet available No ILGR intervention yet


Application of Regional Finance Accounting Management System (SIAKD), using double-entry system.

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procurement reform Not yet existent Not yet existent No ILGR intervention yet


Not yet existent Not yet existent




Not relevant


All procurement is done through direct appointment without competetive bidding

The procurement assessment resulted in ranking Bulukumba in the category “very high risk”

Since 2004, the government of Bulukumba has applied procurement methods that are in line with Presidential Decree 80/2003, eventhough there are still many deficits.

Positive effect of the ILGR facilitation. This result is based on a visit of a procurement consultant at the Kabupaten



Not relevant PPA training I -March 2003 PPA training II – April-Mey 2003 PRSAP drafting workshop I –July 2003 PRSAP drafting workshop II- October 2003

First PPA training report available at National Secretariat


No data available One training on legal drafting for the DPRD was conducted in Bulukumba on August 12th, 2003, attended by 20 participants from NGO’s, the legislative and executive

Training report and participant feedback are available at the National Secretariat

Clipping is available 5.c. Trainings/Workshops for DPRD: The former DPRD members Workshop is held from Dec. 1st-3rd, 2004 Training report and

Halaman 6 dari 7




Number/type of trainings that have been conducted, amount of participants (M/F), stakeholders input

participated in various trainings that were provided by the national government

with 15 participants. participant feedback are available at the National Secretariat

The participants designed a follow-up to be implemented in the kabupaten


No data available Workshop has been conductd in Makassar from 26-28 October with 10 participants

Training report and participant feedback is available at the National Secretariat


Not relevant Not relevant


and public services




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Boalemo: An Overview of the Reform Initiatives

oalemo, which used to be a part of District Gorontalo, became a district of its own in

explore the issues related to public transparency and participation. The team also participated in the ILGR B

2002. Many of its employees live in Gorontalo (2.5 hour trip) or return to the city in weekends. Hence their comsumptions are mostly spent in the city, rather than in Tilamuta (capital of Boalemo) which used to be a sub-district’s capital. In 2003 a part of Boalemo became a new district.

GOVERNANCE Organization. Like most offices in Indonesia, Boalemo also has problems with its staffing—they have more employees on contract rather than permanent ones. For example, the Office for Community Empowerment has 36 staff members and only 5 of them are permanent. With a budget of Rp112 billion in 2004, the public sector is the major contributor to the local economy. It is not surprising that civil service is still a favorite to many job-seekers. In 2004 the Bupati initiated a more transparent civil service recruitment—that people were accepted for their own merit (passing the exams) not because they paid bribes as often happened in other districts. The answer sheets of the examination were scored openly, witnessed by the public. Most of the candidates, including those who failed, viewed the process as fair. Unfortunately, the transparent mechanism had to stop because the central government took over the recruitment. Basic democratization. ILGR facilitates the establishment of multi-stakeholder working groups in a public meeting. These working groups have become the drivers for formulating the district laws on transparency and public participation. They set up a team to

legal drafting training, given by people from Sam Ratulangi University, Manado, to get some basic knowledge on the procedures to draft the law. In August 2004, the draft of the district law was discussed by the DPRD and passed two days before the parliament’s term ended. The reason to pass it quickly was to avoid potential delays since the new DPRD might need more time to review the draft. Budgeting. In 2003, as requested by the NGOs, the government organized a public meeting to review the budget. Quite a few revision was made after the discussion but some people still think that the public participation was still ineffective to influence the decision making process on the budget, especially when it was discussed with the DPRD. Currently the government is discussing possible improvments of the process of 2005 budget to make it more transparent and participatory. Procurement. In 2003 the assessment made by ILGR showed that most procurement was made through direct appointment because, the reason given, the district was new and the staff capacity was low. The results of the assessment was discussed publicly and was soon in the news. Many people then criticized the Bupati who responded by following the procurement regulation in 2004 and sent some of the staff for training in the province. Financial management. There has not been any reforms in financial management. An assessment is needed to develop an operational framework for reforms in financial management. Most local stakeholders think that this is the most senstive area in governance

1

Boalemo: An Overview of the Reform Initiatives

reforms and relatively higher technical skills are needed. Fiscal decentralization. The district government is preparing the law on village block grant. Each village is estimated to get Rp100 million. The block grant will shorten the chains of decision making and service delivery. The government has started socializing the plan and upgrade the village staff. They will model after the mechanism being used in the Kecmatan Development Project (KDP) for public participation. The Bupati has expresssed his need for ILGR support to improve the mechanism.

POVERTY REDUCTION The statistics office showed that 32.5% of the population is poor. The HDI was only 63,9, the 246th of 339 districts. When ILGR came to Boalemo, the district did not have poverty reducation strategies. However the government is developing several programs, based on their own strategic plan, to reduce poverty. The plan specifies neither the targets nor the indicators of the programs. Re-assessment of welfare conditions. As a new kabupaten Boalemo has a strong interest to re-asses the welfare conditions. This work was done by, the family planning office (BKKBN), which recruited local community members to be its field staff. The results showed that poverty rate went down from 57,26% in 2001 to 45,52% in 2002. The assessment was used by all related government offices. Allocation for sub-districts. In 2002 the Office of Community Empowerment allocated Rp4 billion for all ten sub-districts. Through the

mechanism they adopted from the Kecamatan Development Project the money was used to fund economic activities (80%), food for school children (10%) and scholarship for poor students in elementary school and junior high school (10%)). Aids to villages. The program provides Rp11 million for each village to improve their infrastructure. The fund is managed by the village. The district government only provides the basic guidelines. The government plans to develop this program to become a village block grant which involves a subtantially larger fund. Coastal Community Empowerment Program. A large part of the population is fisherman. The government creates a program to improve the fishermen equipments. Through three cooperatives, fishermen get a collective loan to buy boats and and other equipments. Working in groups they can be in the sea (5-10 miles away) longer as there are boats which are especially tasked to fetch fuels and food for them. Hence, they can use their time more efficiently. Searching for effective micro-level financial management system... In the participatory budgeting workhop which was organized by ILGR some of the government participants expressed their interest to review and identify an effective financial management system.. Their thinking was that once the government starts the village block grant program, there will be Rp15 billion being disbursed to communities and these funds should be used effectively to develop local economy.

2

Lamongan: An Overview of the Reform Initiatives

amongan is about an hour-drive from Surabaya, the provincial capital and borders Gresik the

they seldom attend the annual develop-ment planning meeting. Second, there is little transparency in public service L

provincial industrial zone. However, most of Lamongans live on agriculture. Many also work in the informal sector in urban areas or abroad.

GOVERNANCE Institutions. The last general elections (2004) brought new players in the DPRD (only 5 of the 45 members were re-elected). Many of the new members have pesantren or madrasah (Islam-based education) background. Some are also members of village representative council (BPD) or other village level organizations, including those which are created by the CDD projects operating in the disctircts (KDP, UPP). Hence they are familiar with public participation at the village or sub-district levels. In the executive agencies, most of the bureaucrats come from and live in Surabaya and Sidoarjo. They were actually the provincial staff prior to the decentralization who now become the district’s staff. The “dominance” of the non-local staff has created a friction among the government staff. The Regional Secretary then created a performance-based evaluation that enable staff to get a fair treatment. For the echelon-2 officials, however, Bupati decides whether one gets a promotion. Many staff still think the evaluation system is positive. Democratization. During the preparation of the District Law on Transparency and Participation, the consultation with different stakeholders identified several issues that were later accommodated in the bills. The community identified two major issues. First, they do not have information when their development proposal to the government is not accepted. Therefore

delivery. Many people complain about the high price of medicine they have to buy at the hospital as well as community health center. They do not know where to file in their complaints.

Meanwhile the consultation with government offices indicated that they had difficulties finding CSOs with the right skills or expertise to involve them in the government activities. The CSO/NGOs had their own complaints. As a group they did not have access to the government. Hence, their interest to participate in drafting the law. Budgeting. In late 2002 several NGOs analyzed the draft budget 2003 which ended up with rallies against it. DPRD had to postpone their approval and ask the government to revise it. In 2004 another review was made and the focus was on education. This experience has created a need to improve the budgeting mechanism that provide room for the public participation. Procurement. Except for general consultancy, there is no pre-quali-fication for contractors to participate in procurement. In 2004 about Rp50 billion of the budget goes through this mechanism. Others were projects that cost less than Rp50 million each which allowed the government to appoint the contractors directly. This approach, some people said, was meant to help local contractors who would lose in an open competition. Financial Management. Lamongan has a law on financial management as required by Kepmendagri 29/2002. They also have a financial management manual on double-entry accounting. However, there is yet a work-plan to implement the system.

1

Lamongan: An Overview of the Reform Initiatives

Fiscal Decentralization. Many offices develop their own grant to villages. They are not integrated into the village annual budget. There is some discus-sion to create a more comprehensive village block grant but the idea has not been well promoted to create an organized pressure to implement. Service Delivery. In 2004 Lamongan got an award from Jawa Pos, a regional newspaper, for their service delivery. One of such services is in issuing ID card. Sub-district is equipped with computerized system to produce the ID card faster.

POVERTY REDUCTION Lamongan, with a population of 1.27 million, has a poverty rate of 32.4% (BKKBN, 2003). The current Bupati, who came from the private sector, emphasizes the district’s poverty reduction programs in economic development. The coastal area has several on-going issues, such as conflicts with fishermen coming from other districts because of unclear boundaries who can work where. Another problem is the pollution in the sea, originated from the industrial waste from Gresik (another district) and Surabaya. The damage to the coral reef, because of increasing use of mini-trawls, has also posed a problem. In highland communities expressed their concerns with the way PT Perhutani manages the forest that leaves little for the community to get benefits from the forest. In another part the mining by PT Semen Gresik has damaged the forest which affects the water supply. In lowland the conversion of rice fields into fish ponds is increasing. People

see that fish ponds bring more money although the risk is higher, including floods in rainy seasons. Building Rural Markets. The government provides no-interest loans to build markets in rural areas. Once the loan is repaid, half of the revenue goes to the village. Some markets seem to work well including a cattle market in Babat. Building Fertilizer Factory. The government built a organic fertilizer factory. One of the objective is to provide alternative fertilizer for farmer, particularly when price of urea goes up. However, the market share is limited as farmers prefer urea. Pension fund for LG’s Bank. The local government’s bank needed to increase its capital as the demand for loans is increasing every year. The government put the pension fund in the bank. In two years they made a profit which recorded as a part of district own revenue (PAD). Coastal Community Empowerment Program. The government developed savings and loan program for fishermen. However since the fund is limited, most fisher still have to go to money lenders for a loan which charge a high interest rate. Education. There has been a lot of criticism about decreasing enrollment rate. Only 87% of SD graduates continue to junior high school and of these graduates only 74% continue to high school. About 13,000 school-age children do not go to school. Meanwhile, most of DPRD members have education-related activities or teach in madrasah and pesantren. Hence they pressure the government to set a maximal school fee and increase subsidies for poor students.

2