Activity Concept Note # 1 by Decentralization Support Facility

ACTIVITY CONCEPT NOTES # 1 | ARRISING FROM THE DSF WORK PLAN 2009-2011

DECENTRALIZATION SUPPORT FACILITY ACTIVITY CONCEPT NOTE 1/2009 Summary: This activity is designed to strengthen the capacity of provincial and district/municipal DPRD members and secretariats to perform their functions of legislation, budgeting, oversight and representation. Specifically, the Ministry of Home Affairs Directorate for Local Government Affairs in the Directorate General of Regional Autonomy expects DPRD members and secretariats to: 1) understand changes to the governance system at the national level due to the constitutional amendment; 2) comprehend the impact of changes to the governance system for provincial and district/municipal DPRD; 3) recognize the relationship between the head of the region and DPRD in the new governance system; 4) acquire technical capacities needed to perform DPRD functions; and 5) become accountable to citizens and government, conscious of the pitfalls and pressures to be otherwise, and aware of the consequences of transgressions under the law. The program will include capacity strengthening workshops based on local needs assessments, action learning (including on-the-job training), and monitoring and evaluation of targets set for the various DPRD functions.

Activity Title Capacity Strengthening Program for DPRD (Local Government Legislatures)

Counterpart Agency and Key Government Contacts ď&#x201A;ˇ Directorate of Local Government Affairs, Directorate General of Regional Autonomy, Ministry of Home Affairs and six Provincial and Kabupaten/Kota DPRDs ď&#x201A;ˇ Contact person: Dr. Made Suwandi, M.Sc., Director of Local Government Affairs, Directorate General of Regional Autonomy, Ministry of Home Affairs

Duration June 2009 - September 2011

Background and Rationale 1. The Capacity Strengthening Program for DPRD program was commissioned by the Directorate for Local Government Affairs of the Directorate General of Regional Autonomy in the Ministry of Home Affairs (MoHA) and approved by the DSF Management Committee. This section discusses the background and rationale for the project and the context in which it will be implemented. It addresses questions concerning the DPRD legislative functions; knowledge, skills, values and parliamentary performance; need for, and dilemmas surrounding, technical capacity; political economy of DRPD support; DPRD strengthening within the DPRD reform agenda; and the Directorate of Local Government Affairs DPRD strengthening program approach.

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2. Legislative functions. Parliamentarians worldwide are expected, without fear or favor, to perform functions of representation, legislation, and oversight. In Indonesia, the role of local parliamentarians (DRPD members) is defined in Law No.32/2004 as legislation, budgeting, and oversight. The international definition used by the World Bank Institute (WBI) includes the budgeting function in the oversight category in the form of asking “value for money” questions to evaluate the effectiveness of government spending.1 3. Knowledge, skills, values and parliamentary performance. In order for parliamentarians to perform these three functions effectively, a set of knowledge, skills, and values is required. Although no major survey or job analysis has been conducted nationwide of DPRD members, the sheer number of new DPRD members (in 2009 70% of the DPRD members are predicted to be new members)2 with varying skills and backgrounds will present several challenges. 4. WBI states that based on international best practices there are four factors that influence parliamentary performance: type of political and electoral system; formal legislative powers; political will and political space; and technical capacity.3 In Indonesia, due to the number of changes in elections laws and regional autonomy laws that dictate the roles and functions of DPRD members, elected representatives are continually adjusting to the new governance structure.4 In addition, although some DPRD members have the political will to introduce reforms, many are caught in a trap of indebtedness to political parties due to campaign expenses and they are dependent on the support of interest groups, both of which can compromise DPRD work.5 5. Need for and dilemmas surrounding DPRD technical capacity. To date, DPRD strengthening programs have focused on knowledge transfer such as understanding of the rules and regulations governing DPRD and the relationship between DPRD and the executive branch. Support programs have also focused on skills upgrading, such as negotiating with political parties and engaging with constituents. Attention to values has also been evident through strengthening of DPRD members’ commitment to poverty reduction and improved public services. Most of these programs are designed for development of technical capacity. However, experience in developing countries shows that even with modern parliamentary structures in place a technical approach to capacity building, while necessary, may not be sufficient. A recent report on strengthening parliament from the Africa All Party Parliamentary Group states that development partners should do more to ensure that

Johnson, John K. The Role of Parliament in Government. World Bank Institute Working Papers, 2005. Interview with Dr. Made Suwandi, Director of Local Government Affairs, Directorate General of Regional Autonomy, Ministry of Home Affairs, May 2009. 3 Johnson, John K. The Role of Parliament in Government. World Bank Institute Working Papers, 2005. 4 New DPRD members must understand the implications of the revised Law on Elections No.10/2008 for DPR, DPD, and DPRD, and proposed revisions to the Law No.22/2003 on Formation and Positioning of MPR, DPR, DPRD (Susunan dan Kedudukan or Susduk), and a number of additional regulations on regional development and budgeting. 5 Workshop on Mapping of Legislative Strengthening Programs in Indonesia, 11 May 2009, Jakarta. 2

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programs are planned based on an understanding of the political pressures and context within which parliamentarians work.6 One respondent remarked, “Strengthening parliaments isn’t simply a capacity issue: it’s an intensely political issue. We need to dispel the entrenched idea amongst many donors that what’s holding parliaments back is an apolitical issue of capacity. Capacity building initiatives that approach parliament as a normal institution are doomed to failure.”7 6. Political economy8 of DPRD support: issues for government and donors. Government and donors in Indonesia are increasingly aware of the need to address the political economy of DPRD and the limitations of a purely technical approach to capacity strengthening. However, many of the government-run DRPD capacity strengthening programs concentrate on technical capacity due to federal mandates and funding for this type of assistance. Perhaps due to the complexity and difficulty of addressing political economy issues, donors have targeted their efforts on improving technical quality through training materials development and interactive training techniques. Some have attempted to develop specific modules on DPRD leadership and good governance.9 7. The Corruption Eradication Commission (KPK) addresses political economy issues in its DPRD training, perhaps due to the large number of corruption cases involving DPRD members.10 KPK’s training covers the position, role and function of DPRD in practicing good governance; the concept of representation in modern politics; and how to increase the capacity for representation. It also presents ways to combat corruption in performing the DPRD functions of legislation, budgeting, and oversight. The training includes action plans, such as publishing the annual budget, followed by 3-6 month follow up to monitor the implementation of action plans. 8. DPRD strengthening as part of a larger DPRD reform agenda. Capacity strengthening programs targeting DPRD members and DPRD secretariats are part of a much wider reform agenda. Key aspects of this agenda include regulatory framework reform;11 political party reform and, in particular, the recruitment of DPRD candidates and campaign finance 6

Strengthening Parliaments in Africa: Improving Support, A Report by the Africa All Party Parliamentary Group (AAPPG), March 2008. 7 Ibid. 8 Political economy in this concept note refers to the way in which political institutions and political and social forces intersect with economic systems and incentives to influence the way government works. 9 “Program Penguatan DPRD 2005-2009,” Presentation at the Workshop on Mapping of Legislative Strengthening Programs, 11 May 2009. LGSP-USAID. 10 KPK reports that in 2004-2006, there were 767 cases of corruption in District/Municipal DRPD (spread across 110 districts and 25 municipalities) and 327 cases of corruption in Provincial DPRD. This compares to 63 cases of corruption of bupati/walikota and 7 cases of governors. “Peningkatan Kapasitas, Peran, dan Fungsi DPRD dalam rangka Pencegahan Tindak Pidana Korupsi,” Kedeputian Pencegahan KPK..Presentation at the Workshop on Mapping of Legislative Strengthening Programs, 11 May 2009. 11 Penguatan DPRD dalam Perspektif Konstitusi dan Penguatan DPRD dalam Perundang-undangan di Bawah UUD 1945. Dewan Perwakilan Rakyat Daerah, Bukan Dinas Perwakilan Rakyat Daerah (Telaah Kritis Peran dan Fungsi DRPD). UNDP-GRADE. December 2008.

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reform;12and the role of civil society in holding DPRD members accountable.13 Although this program is limited to capacity strengthening of DPRD members and secretariats, it will also attempt to contribute to the larger DPRD reform agenda through attention paid to public accountability. 9. In Indonesia, as in other developing countries, the political system is still characterized by a balance of patronage-based governance and rational-legal models of governance.14 In addition, this is accompanied by public attitudes that acknowledge that use of political office to make money and demand special privileges is commonplace, although not always acceptable. The social deconstruction of corruption, or its prevention, is a long term endeavor. Investing in the demand side of reform, especially social and public accountability mechanisms,15 is crucial to changing public attitudes and to prevention. 10. Analysis of the modus operandi of corruption in five provinces in Indonesia highlights the important role of community groups (including: villagers; NGOs or NGO coalitions; companies that lost out in rigged tenders; or competing politicians) in discovering and reporting corruption cases in local legislatures.16 Political pressure by community groups can also be effective in holding the DPRD more accountable for government development programs at the local level. Increased spending on impartial service delivery spearheaded by both the legislative and executive, for example, can undermine beliefs in patronage and improve accountability.17 11. Given the importance of accountability, both on the demand and supply side for DPRD, there is a case for accountability training as a key competency for the DPRD strengthening program. However, a comprehensive capacity strengthening program for DPRD members covering all of the knowledge, skills, and values needed to effectively perform their functions is not realistic or necessary according to the results from a Mapping of Legislative Strengthening workshop in Jakarta with participants from MoHA, local government associations, and international organizations.18 Due to the number of programs available addressing different aspects of capacity strengthening (MoHA induction programs on knowledge of governance structure; Corruption Eradication Commission-KPK programs on ethics in decision making; international organization training on constituency outreach), 12

Perbaikan Rekruitmen DPRD oleh Parpol. DPRD: Dewan Perwakilan Rakyat Daerah, Bukan Dinas Perwakilan Rakyat Daerah (Telaah Kritis Peran dan Fungsi DRPD). UNDP-GRADE. December 2008. 13 Local Government Accountability and Discretion: Application of a Local Governance Framework, Social Development Department, The World Bank, 2009. 14 Blunt, Peter (2009). “The Political Economy of Accountability in Timor-Leste: Implications for Public Policy.” Public Administration and Development No. 29, pp.89-100 illustrates this phenomenon in Timor-Leste and links to the period of Indonesian occupation. 15 Local Government Accountability and Discretion: Application of a Local Governance Framework, Social Development Department, The World Bank, 2009. 16 Taufik Rinaldi, Marini Prunomo, Dewi Damayanti. Memerangi Korupsi di Indonesia yang Terdesentralisasi: Studi Kasus Penangan Korupsi Pemerintah Daerah. Justice for the Poor/World Bank. May 2007. 17 Blunt, Peter (2009). “The Political Economy of Accountability in Timor-Leste: Implications for Public Policy.” Public Administration and Development No. 29, pp.89-100. 18 Workshop on Mapping of Legislative Strengthening Programs in Indonesia, 11 May 2009, Jakarta.

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DPRD councils can choose from a menu of options depending on the needs of their members and the knowledge, skills, or values regarded as most important for professional development. The DPRD local government associations (ADKASI, ADEKSI) can play a key role in disseminating information among member DPRDs regarding the types of capacity building programs on offer and the available service providers.19 12. An issue mapping paper presented by the UNDP Indonesia for the Decentralization Support Facility (DSF) and Support Office for Eastern Indonesia (SOfEI) identified development issues and options for support to advance local legislative councils in Indonesia taking into consideration the legal framework and functions and management of DPRD. The following table states areas and issues needed for DPRD members to perform well focusing primarily on knowledge with some reference to skills needed to be effective.20 This will be used as a basis for curriculum development of the MoHA program supported by DSF based on lessons learned from the previous MoHA program supported under the GRADE-UNDP project. Table 1

Area Constitution Susduk Law (UU 22/2003)

Law on Regional Governance (UU 32/2004)

Government Regulations (i.e. PP 37/2005 and PP 53/2005)

Issues Legal Framework for DPRD DPRD are considered a part of the regional authorities (Art. 18). Their position is not further specified. DPRD are considered a part of the regional government framework (Art. 60 prov. DPRD, Art. 76 district/city DPRD). The role and functions of the DPRD are defined as legislation, budgeting and oversight (Art. 61 for provincial DPRD, Art. 77 for district/city DPRD). DPRD are considered a part of the regional government framework (Art. 40). The law further defines the legislative-executive relations and ways how the DPRD should execute its authorities (Art. 42). Legislative-executive relations. Role of DPRD Head, Committees, and Special Committees. Detailing the functions and processes. Detailing the role and functions of the DPRD Secretariat.

ADKASI expressed its intention and interest in mapping of DPRD strengthening programs and potential role as a clearinghouse at the Mapping of Legislative Strengthening Programs, Jakarta, May 2009. 20 â&#x20AC;&#x153;Advancing Local Councils in Indonesia: Development Issues and Options for Support.â&#x20AC;? Issue Mapping Paper prepared by the UNDP Indonesia for the Decentralization Support Facility (DSF) and Support Office for Eastern Indonesia (SOfEI), May 2008.

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Area

Issues Functions and Management of DPRD Legislation Knowledge and expertise of drafting process for government regulations. Knowledge of enabling legal framework. Expertise in public engagement in legislation-making. Knowledge of human rights and minority issues. Knowledge of executive annual development plan and vision Access to DPRD in-house expertise. Planning and Budgeting Knowledge of budget planning and annual budget circle. Knowledge of public participation in development planning (Musrenbang). Knowledge of budget scrutinising. Knowledge of public auditing. Access to expertise. Oversight Knowledge of laws, local regulations and governor/regent decrees. Knowledge of activities by the RGH and local administration. Knowledge of oversight and supervision processes and follow-up. Knowledge of importance of media in government supervision. Access to expertise. Representation Knowledge of importance of constituent relations. Knowledge of particularities of constituents represented by the respective DPRD member. Knowledge of local programme of the respective political party. Access to expertise DPRD management and Knowledge of what DPRD members need to execute their support services functions. Knowledge of the legal framework regulating the DPRD and DPRD standing orders. Knowledge of how the local executive is organised and how it works. Knowledge about how to prepare an annual DPRD Work Plan. Expertise in collecting and processing information and data. Knowledge regarding the management and documentation of information and data. 13. MoHA Local Government Affairs approach to DPRD strengthening. The MoHA Local Government Affairs program is a thorough approach to training and development combining five main components: needs assessment; curriculum development and learning

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methodology; capacity strengthening workshops; action learning/technical assistance to reach post-workshop targets, and monitoring and evaluation. These components will be described briefly below and in more detail in the section on scope of services and subactivities. 14. The program begins with a needs assessment to determine the knowledge, skills, and values needed by the targeted DPRD using a combination of secondary data, interviews, and self assessment. It is then followed by curriculum development and learning methodology based on the results of the needs assessment with testing of modules in the field.21 The capacity strengthening modules can be modified from previous DPRD strengthening programs or newly developed. They should incorporate relevant technical knowledge, take into account political economy issues, use adult learner methodology, and incorporate practical applications of concepts through case studies, simulations, and fieldwork. Capacity strengthening workshops are then conducted with participating DPRD councils. Following the workshops, action learning plans22 are developed with appropriate provision of technical assistance to reach specific targets such as conducting a public hearing, publishing the approved annual budget, performing gender budget analysis or other priorities identified by DPRD members. Finally, extensive monitoring and evaluation is conducted to gauge the overall adoption and practice of new knowledge, skills, and values in DPRD councils throughout the program and the extent to which the action learning targets were reached. 15. This program will be implemented in cooperation with other relevant programs to avoid duplication and ensure value added. The materials and monitoring and evaluation results will be shared with DPRD local government associations for replication in other interested DPRD councils. 16. Links to DSF Strategic Framework. The DSF strategic framework states that in the current state of decentralization service provision is not sufficiently linked to local demand. The DPRD representatives are elected officials expected to seek out and respond to local demands on issues such as public service delivery. However, the capacity of local DPRD representatives to both make decisions regarding provision of public services and be accountable to the public is variable, though likely generally to be weak. Thus, the activity proposed by the Directorate of Local Government Affairs, Directorate General for Regional Autonomy at the MoHA seeks to provide capacity strengthening opportunities for DPRD representatives to address this gap.

Learning methodology in particular is critical as the majority of previously conducted DPRD strengthening programs use a traditional lecture style that has proved ineffective. New strengthening programs are introducing adult learner methodology, simulations, and case studies in an attempt to improve the quality of learning and results. 22 Action learning is a process of learning-by-doing, receiving input from peers and experts, and making links to knowledge and concepts in real world situations. Action learning as an educational process is associated with Reginald Revans. See Revans, R. 1980. Action learning: New techniques for management. London: Blond & Briggs, Ltd. and Revans, R. W. 1982. The Origin and Growth of Action Learning. Brickley, UK: Chartwell-Bratt. Action learning has been institutionalized in education and management courses throughout the world.

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17. This activity shows the recognition of the central government, in particular MoHA, to the importance of local governance in the legislative branch and its impact on local development. This activity is consistent with the harmonization agenda because the modules proposed were developed through previous cooperation between MoHA and UNDP through the Governance Reform and DPRD Empowerment (GRADE) program. In addition, it will add to the work of several other organizations that have supported legislative strengthening programs including the Local Governance Support Program (LGSP)USAID, Konrad Adenauer Stiftung (KAS), Friedrich Naumann Stiftung (FNS), National Democratic Institute (NDI), and International Republican Institute (IRI). Other government institutions, such as KPK, Badan Pendidikan dan Pelatihan Depdagri (Badiklat), Bina Administrasi Keuangan Daerah (BAKD), Kesatuan Bangsa dan Politik Depdagri (Kesbangpol), and Pejabat Negara Depdagri also have responsibility for induction programs which are at various stages of development. A component of the DSF activity will include a review of existing curriculums and impact evaluations of previous training in order to better execute this activity and advance the DPRD reform agenda.

Goal and Objectives 18. The goal of the capcaity strengthening program for DPRD as stated by the Ministry of Home Affairs Local Government Affairs Directorate is to strengthen the capacity of DPRD representatives so they become effective conduits of the aspirations and concerns of citizens, and create legislation in the interests of equitable and sustainable development taking into account citizen demand. In addition, through this program MoHA seeks to strengthen the position and role of DPRD as a partner to local government resulting in constructive engagement for local development. 19. The objectives of the program are for DPRD representatives to understand and perform their functions of legislation, budgeting, oversight, and representation effectively and without fear or favor. MoHA expects DRPD members to: a. Understand changes to the governance system at the national level due to the constitutional amendment b. Comprehend the impact of changes to the governance system for provincial and district/municipal DPRD c. Recognize the relationship between the head of the region and DPRD in the new governance system d. Acquire technical capacities needed to perform DPRD functions e. Become accountable to citizens and government, be conscious of the pitfalls and pressures to be otherwise, and aware of the consequences of transgressions under the law.23

Stapenhurst and Pelizzo state that legislative training can play a crucial role in ethics reform by clarifying misconduct, presenting information on the roots of misconduct, showing that misconduct undermines democracy, raising awareness of the importance of eliminating misconduct, and identifying ways misconduct can be eliminated.

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20. The first four objectives are focused on the knowledge and skills needed to perform DPRD functions and develop a constructive relationship between local government entities. The last objective focuses on values, in addition to knowledge and skills, needed for DPRD members to be effective. This includes the ability to influence their political party factions and willingness to resist pressures to subvert the system. It also refers to capacity and political will to demonstrate upward and downward accountability. 21. Knowledge, skills, and values emphasized in the capacity strengthening program and action learning will be determined based on the local needs assessments of DPRD members and the priorities of the regions the DPRD members represent. The local needs assessment will also include solicitation of information on the political economy pitfalls and pressures DPRD members face and lead to some case illustrations that can be used during capacity strengthening. The local priorities and concerns identified in the local needs assessment will be combined with the national priorities articulated by MoHA including among others better understanding and skills development in local policy development; budgeting; personnel policy; reporting; oversight of the implementation of legislation; local economic development; and relationship between DPRD and third parties. 22. The capacity strengthening workshops and the action learning developed as a follow on to the workshops will take into account the (political economy) constraints DPRD members work within and the successes that can be built upon to promote good governance and sustainable development. The challenges faced by DPRD members and the strategies developed to address political dilemmas documented during this capacity strengthening program could be further developed for use in future training and prevention activities.

Scope of Services and Sub-activities 23. The program includes a series of sequential activities. MoHA will begin by contacting selected DPRD, discussing the program, and determining final participants. MoHA will invite selected DPRD heads to Jakarta for consultations and conduct a â&#x20AC;&#x153;road showâ&#x20AC;? to the various regions. 24. A thorough needs assessment will then be conducted through secondary data review and visits to the local DPRDs (either in conjunction with the road show or separately). The assessment will determine the specific needs of DPRD representatives of participating DPRDs focusing on technical capacity, political issues, and development issues of the region. 25. Using data submitted from the Direktorat Penjabat Negara, KPU, and Sekretariat DPRD (Sekretariat Dewan or Sekwan) the needs assessment will begin with a review of the educational background and professions of participating DPRD members. Ideally, the needs assessment should equal the difference between what the position requires--in terms of knowledge, skills, and values--in order for it to be performed well and what the individual Rick Stapenhurst and Ricardo Pelizzo. Legislative Ethics and Codes of Conduct. World Bank Institute Working Papers: Series on Contemporary Issues in Parliamentary Development, 2004.

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possesses in these terms. Due to time limitations the needs assessment will not incorporate direct observations of DPRD members and independent validations of training and development needs of members from local stakeholders. It will depend largely on a combination of the input from the secondary data on DPRD member backgrounds, advice from the Sekwan (civil servant position that is not elected), and needs expressed directly by DPRD members. 26. Since a large proportion of DPRD members are newly elected there may be a number of knowledge domains that will be necessary for all representatives. In addition, in some of the â&#x20AC;&#x153;valueâ&#x20AC;? domains, it may be useful to provide access to these modules for all members. There may be a number of modules that are unique to a particular region and express the short term or mid-term goals of particular DPRD. 27. The next stage consists of curriculum and methodology development involving the modification or development of capacity strengthening modules based on the key knowlege, skills, and values highlighted in the needs assessment. The workshop material will take into account the results of a literature review of existing DPRD strengthening programs. It will also incorporate case studies and simulations on technical areas as well as political challenges expressed by participating DPRD members. 28. Based on previous experience with the GRADE program, MoHA has identified recommended capacity building modules that will help strengthen DRPD capacity in their core functions of legislation, budgeting, oversight, and representation. These modules may be modified for use in the 2009-2011 program (in particular adding case studies and simulations or topical material) or discontinued in favor of different modules deemed urgent. They include: 1. Relationship between the District/Municipal Head and DPRD in the Indonesia governance system, 2. Legislative function of DPRD, 3. Monitoring function of DPRD, 4. Public consultations of DPRD, 5. Strengthening of the DPRD Secretariat, 6. Local development planning, 7. Local government budgeting, 8. Strategies for increasing local revenue, 9. Cooperation between local government and third parties, and 10. Economic development potential. 29. When the modules are completed they will be tested in the regions and modified accordingly. The capacity strengthening provider will conduct workshops for DPRD members either by region or in mixed groups using learning methodology. The capacity strengthening workshops will include interactive learning and practical applications of various skills and competencies. The workshops will include case studies or simulations to illustrate concepts and skills in addition to exploring political constraints and strategies. The capacity strengthening workshops could also include field visits to learn about good practices in progressive DPRDs. 30. Following the workshops, the capacity strengthening provider will work with DPRDs on the development of action learning plans for application of workshop material to actual

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DRPD tasks and duties. The provider will also help determine technical assistance needed to assist DPRD members execute their plans. Action learning will take the form of on-the-job training in areas such as legal drafting, facilitating a public consultation, or preparation for an open budget hearing. Technical assistance will be provided to facilitate special projects or events at the request of DPRD members, and other needs that arise. 31. Independent monitoring and evaluation will then be conducted to determine the extent to which knowledge, skills, and awareness of values were apparent in the post-workshop activities, and that DPRD members were able to accomplish the goals set for the various functions of legislation, budgeting, oversight, and representation. 32. Summary of Sub-activities: a. Roadshow and signing of MOU with DPRDs  Ensure participating DPRDs (provincial and district/municipal) understand the goals, objectives, and expected results of the program  Obtain formal committment from selected DPRD for participation and cofinancing of the program  Set up mechanisms for national-subnational coordination of the program b. Needs assessment  Identify capacity strengthening needs and types of training required focusing on knowledge, skills, and values  Collect information on political pressures and constraints facing DPRD members in fulfilling their functions for case illustations in the capacity strengthening materials and activities c. Development of capacity strengthening modules and materials  Develop modules based on the DPRD functions and capacity strengthening needs identified in the local assessments  Conduct a literature review of existing DPRD strengthening programs and use relevant materials in the module modification/development  Modules should be focused, interactive, and include practical applications (case studies or simulations)  Some modules should address political constraints facing DRPD members and strategies for ethical political negotiation using real case studies collected from DPRD participants during the needs assessment d. Testing of capacity strengthening modules  Pilot test capacity strengthening modules with representative DRPD members and secretariats  Identify areas for improvement in the modules and modify substance or training techniques accordingly e. Capacity strengthening workshops  Include understanding of the legal framework for DPRD and the role of DPRD and local government

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 Develop capacity in technical areas identified during the local needs assessment and key general modules identified by MoHA  Apply knowledge, skills, and values obtained from the workshops in practical applications (case studies, simulations) that address political economy constraints f. Action learning (on-the-job training, technical assistance)  Develop action learning plan  Provide on-the-job training and technical assistance to DPRD members, Sekwan, or committees on specific targets related to key functions  Assist DPRD in achieving tangible results based on issues covered in the capacity strengthening workshops g. Monitoring and evaluation  Assess the level of learning by DPRD members of key knowledge, skills, and values covered in the capacity strengthening workhop  Monitor and evaluate the results of the action learning, on-the-job training, and technical assistance 33. Proposed beneficiaries. The Ministry of Home Affairs has identified the following six provinces as proposed beneficiaries for the DPRD stregthening program based on current MoHA priorities: Maluku, East Nusa Tenggara (NTT), West Kalimantan, Bali, Riau Islands, and South Sumatra. The locations are subject to change based on new developments and committment from prospective DPRDs. The provincial governments will sign MOUs with the Ministry of Home Affairs and the provincial governments will decide which district DPRD should participate in the program (one district/municipality per province) taking into consideration opportunities for previous training, number of new DPRD members, and strategic importance.

Deliverables 34. The service provider(s) will be expected to produce the following deliverables after each major sub-activity is completed as follows: a. Results of needs assessment (report) including the identification of the technical and political needs of DPRD in the six different regions and recommendations for types of modules, field visits, and practical applications needed to develop or modify capacity strengthening modules b. Capacity strengthening modules including the results of a literature review of existing DPRD strengthening materials, technical material that will be covered, the methodology and mode of presentation, and practical applications (such as case study or simulation) for each module c. Capacity strengthening report with the materials from the various capacity strengthening workshops and analysis of capacity strengthening results d. Action learning report of follow-up assistance in the form of action learning needed for DPRD members to put learning into practice including specific types of on-the-job

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training or technical assistance (such as legal drafting, assistance running a press conference, organizing a public consultation, or other DPRD priority) e. Monitoring and evaluation report including documentation of the change in the level of knowledge regarding DPRD functions after the capacity strengthening workshops (possible pre and post test) and results of the action learning and technical assistance to various DPRD (illustration of applied learning and analysis of concrete tasks/duties successfully accomplished) 35. The service provider will provide quarterly progress reports to the Ministry of Home Affairs and DSF with information regarding implementation of the various sub-activities and financial status of the program.

Sustainability 36. This capacity strengthening program for DPRD will be implemented by local organizations, most likely universities/research institutes, in cooperation with capacity building/training specialists. It will provide local governments with access to capacity strengthening providers and experience with a range of capacity strengthening topics. 37. The program includes co-financing from participating DRPDs as a requirement for participation. DPRD members pay for their own travel expenses and per diems. MoHA (with DSF support) pays for the capacity strengthening workshop costs, accommodation, and associated costs of action learning coaching, on-the-job training, and technical assistance. DPRDs have budgets allocated for capacity strengthening thus DPRD members will be able to commission similar workshops and action learning assistance in the future. 38. This program provides DPRDs with exposure to service providers (both local and national). Through participation in the various stages of the program (needs assistment, curriculum development and piloting, workshops, action learning and on-the-job training) DPRDs will gain an understanding of how to develop capacity strengthening programs and work with service providers to meet capacity strengthening needs. Once the program is completed DPRDs can commission future capacity strengthening services on their own and tap into the local service provider network.24 39. Given the anticipated response of DPRD councils and the approach of the capacity strengthening workshops and action learning, especially the proposed case applications of political strategy and negotiations for results, the DPRD strengthening program could be scaled up to other regions through coordination of the Ministry of Home Affairs or in cooperation with the DPRD local government associations. Since the program will be 24

A recent report on consultant services in Indonesia recommends that donors should â&#x20AC;&#x153;help local governments translate general development priorities into specified capacity needs, to assist new and existing consultant services to improve technical offers and marketing capabilities, and then to enhance the capacity of both to effectively manage the service contracting process.â&#x20AC;? Local Governance in Indonesia: Developing a Market for Consultant Services. LGSP-USAID. March 2009, pp.20-21. The MoHA program seeks to encourage this type of partnership between local government and Indonesian service providers.

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executed through budget support (through the Indonesian national budget or APBN), MoHA will have direct experience in managing the program and could allocate its own resources in the future. However, the program should maintain a tailor-made, demand side approach and allow DPRDs to contract services on their own or as part of a larger MoHA subsidized program.

Gender 40. Capacity strengthening for DPRD addresses a number of gender issues including gender analysis of public service and other development outcomes, gender budgeting, and women’s participation in politics. In addition, DPRD consultations with women and men constituents requires appropriate approaches (accessing women’s activist organizations, consulting with constituents in mixed gender and separate groups). Oversight of government programs should explore the different impacts on men and women (for example health allocations for women’s and men’s health services, women’s and men’s benefits from village infrastructure). 41. The modules of the capacity strengthening program for DPRD will include a gender perspective in all major topics addressed including legislation, budgeting, oversight, and representation. In addition, a special module on women’s participation in local politics and women’s leadership can be added to the general curriculum based on the local needs assessment. The capacity strengthening program for DPRD set targets of 30% or more women participants, but the achievement of this outcome depends on the outcome of the elections and the extent to which the 30% representation quota is met.

Program Management, Execution, and Implementation 42. The role of the Government of Indonesia/MoHA Local Government Affairs in the capacity strengthening program for DPRD is as sponsor/owner of the program with responsibilties for steering; procurement and contracting of service provider; monitoring of program implementation; and oversight. The DSF Executive will be responsible for program monitoring and quality assurance. MoHA and the DSF Executive will be jointly responsible for submitting program documents to the DSF Management Committee. The Service Provider(s) is responsible for implementing the program according to the Terms of Reference, allocated budget, and contract requirements. The Service Provider(s) must submit reports/deliverables to MoHA and DSF according to schedule for review. See table below for a summary of roles and responsibilties. MoHA Local Government Affairs: sponsor/owner of program; responsible for steering, procurement and contracting of service provider, management of program implementation, program monitoring and oversight, and submission of reports to DSF MC DSF Executive: responsible for program monitoring and quality assurance, and along with MoHA, submission of reports to DSF MC

ACTIVITY CONCEPT NOTES # 1 | ARRISING FROM THE DSF WORK PLAN 2009-2011

Service Provider: responsible for implementing the program according to the TOR, budget, and contract requirements, and submission of reports/deliverables to MoHA and DSF for review 43. This program will be implemented using the On-Budget, On-Treasury or Government Executed mechanism also known in World Bank terms as Recipient Executed. The allocated funds for the program will be transferred to GOI through a Grant Agreement. The management of funds must follow GOI regulations. MoHA will adhere to World Bank procedures for Recipient Executed programs and obtain No Objection Letters (NOL) as required.

Implementing Agency 44. The implementing agency(s) or service provider(s) will be selected using the GOI procurement systems (Kepres 80/2003) and in compliance with World Bank regulations. Due to the complexity of the program a consortium of universities/research institutes at the national and local level, in cooperation with capacity building specialists in all aspects of the program, is recommended. In particular, national research institutes would be responsible for the capacity strengthening workshops while local research institutes would assist with action learning and provision of technical assistance in the regions, both in cooperation with capacity building specialists. Thus, a combination of experts/scholars and training and development practioners is needed for the key personnel. In addition, capable administrative and financial personnel and a program manager with well developed reporting and communication skills is crucial. 45. The implementing agency(s) or service provider(s) should have the following qualifications: a. In-depth knowledge of the roles and functions of DPRD and local governance b. Extensive experience in all aspects of training and development c. Ability to design workshops with interactive participation and practical applications of DPRD functions d. Ability to design field visits of DPRD members to areas with successful public service provision e. Demonstrated management capacity to handle administrative and financial requirements of the contract f. Able to coordinate intensively with the Ministry of Home Affairs on all phases and activities in the program g. Ability to design monitoring and evaluation activities and faciliate action learning/technical assistance to DPRD as follow up to capacity strengthening workshops h. Excellent relationship and network with local governments in particular with DPRD and Sekwan

ACTIVITY CONCEPT NOTES # 1 | ARRISING FROM THE DSF WORK PLAN 2009-2011

i. Willingness to be flexible and respond to changes in the program based on results of needs assessment and demands from central or local government 46. The implementing agency should include two key personnel: 1) training and development/capacity building specialist and 2) parliamentery expert/DPRD strengthening specialist. Other suggested personnel include specialized facilitators for capacity strengthening workshops, resource persons on technical subjects, action learning coaches and technical assistance providers, and administration/finance personnel.

Procurement and Implementation Schedule 47. The procurement and implementation schedule will follow the GOI calendar and procedures according to Recipient Executed activities. The estimated schedule is as follows (and is subject to change)**:  June 2009: Activity Concept Note finalization and DSF Management Committee approval  July-August 2009: World Bank financial management, procurement, and disbursement orientation for MoHA technical, procurement, and planning units; World Bank financial management and procurement assessment at MoHA; preparation and verification of GOI documents for on-budget, on-treasury submission including Terms of Reference and GOI budget documents (Rancangan Anggaran Besar or RAB); Preparation of Grant Agreement  September-October 2009: Signature of Grant Agreement, submission of program documents to AKLN, Sekjen MoHA, and Ministry of Finance for approval and Registration Number  November 2009-January 2010: Bidding Process (Tender Advertised in Media Indonesia)  February 2010: Roadshow and socialization of DPRD program and signing of MOU between MoHA and participating DPRDs; Needs assessment  March-May 2010: Modification and development of modules; testing and final revision of modules  June 2010-June 2011: Capacity strengthening workshops for 6 Provincial and Kabupaten/Kota DPRDs accompanied by Action Learning, On-the-Job Training, and Technical Assistance  July-August 2011: Independent Monitoring and Evaluation  September 2011: Final Report **MoHA recently changed the execution mechanism for this activity from Bank Executed to Recipient Executed (GOI). Due to possible implementation delays for Recipient-Executed activities, the World Bank financial management, procurement, and disbursement teams will discuss the feasibility of the above schedule with MoHA procurement, planning, and technical teams to determine whether it can be completed in the time-frame of the DSF extension. If problems arise, the execution mechanism will be adjusted accordingly.

ACTIVITY CONCEPT NOTES # 1 | ARRISING FROM THE DSF WORK PLAN 2009-2011

Budget 48. The allocated DSF budget for the program is US$500,000. The eligible expenses approved by the World Bank based on the Rancangan Anggaran Besar or RAB submitted by MoHA for inclusion in the Grant Agreement are as follows.

Category Consultantsâ&#x20AC;&#x2122; services Training and Workshops Goods and Operating Expenses Total amount

Percentage of Expenditures to be Financed (inclusive of Taxes) 440,200 100% 26,000 100% 33,800 100%

Amount of the Grant Allocated (USD)

500,000

ACTIVITY CONCEPT NOTES # 1 | ARRISING FROM THE DSF WORK PLAN 2009-2011