http://www.dsfindonesia.org/one/acn/en/p/ACN_2_ENG

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ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

DECENTRALIZATION SUPPORT FACILITY ACTIVITY CONCEPT NOTE 2/2009 Summary: As part of the Government’s strategy to reduce regional disparities, this activity is designed to lead to better-informed and better-managed policy making for regional development. This is to be achieved by assessing the suitability, availability, and validity of relevant data; analyzing policy making processes; and determining how best to develop more effective policies for regional development. A core component of the project will be to develop Bappenas capacity and to achieve crossministerial consensus on new approaches.

Activity Title Capacity Building for Regional Development Policy Formulation

Counterpart agency and key government contacts  The counterpart agency and main beneficiary of this activity is Bappenas, Directorate for Regional Development.  The main government contact is Ir. Arifin Rudiyanto, MSc., PhD, Director of Regional Development, Bappenas.

Duration June 2009 – December 2010

Background and Rationale 1. This Activity Concept Note envisages that activities for the project ‘Capacity Building for Regional Development Policy Formulation’ will take place over two phases over a period of 18 months. A budget of US$150,000 has been approved by the DSF MC (Management Committee) and this will be utilized for Phase 1 (6 months). Phase I covers a review of regional development policy to date, an assessment of development data and an assessment of policy making processes. Input will be provided for the upcoming RPJM. Upon completion of Phase 1, and contingent upon a satisfactory review from the DSF MC, further approval will be sought for Part 2 (12 months). This will build upon the foundations laid in Part 1 by providing capacity building training for national level government staff and formulating regionally specific development strategies. This Activity Concept Note describes all activities (Part 1 and Part II) but only Part 1 will be procured with the approved budget. 2. Indonesia faces huge challenges of development management in its regions. With development indicators across regions and over time showing considerable variation. For example, regional gross domestic product data shows that disparity of per capita provincial

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income is relatively large.1 Resosudarmo and Vidyattama (2006) show that despite some convergence in per capita regional GDP between the poorest and richest provinces in the period 1993 to 2002 severe disparities persisted. 3. The table below shows per capita regional GDP in each region (the provincial average is given in each region). Per capita regional GDP includes mining, which affects Papua and Kalimantan more than other provinces. Without including the mining sector in 2002 per capita regional GDP in Papua is US$491 and Kalimantan is US$1214 (1983 prices). Of note is the very low per capita regional GDP in Nusa Tenggara, Maluku and Sulawesi and the comparatively high per capita rates in Sumatra, Java-Bali and Kalimantan. Inter-provincial differences in GDP per capita (not shown) can also be very high. Table 1: Per capita regional GDP, 1971-2002 Per capita regional GDP Region

(provincial average in each region, USD, 1983 prices) 1971

1983

1996

2002

Sumatra

453

823

1083

905

Java-Bali

262

455

984

956

Kalimantan

351

1045

1428

1599

Sulawesi

167

279

529

583

Papua

231

672

1060

1160

Nusa Tenggara

116

175

328

415

Maluku

249

312

575

460

Source: Resosudarmo and Vidyattama (2006)

4. Growth rates have varied considerably between the regions even over the past few years as indicated below. Except for 2005, west Indonesia has consistently grown faster than east Indonesia from a much higher base. Table 2: Regional GDP growth rates, 2004-2007 Region 2004 Sumatra 2.93 Java & Bali 5.38 Kalimantan 3.01 Sulawesi 5.69 Nusa Tenggara, Maluku & Papua (5.26) West Indonesia 4.72 East Indonesia 2.00 National 4.25

2005 3.57 5.74 3.92 6.26 13.97 5.16 6.43 5.37

Source: Badan Pusat Statistik (2009)

1

2

Resosudarmo and Vidyattama, 2006, ASEAN Economic Bulletin 23.1 (2006) 31-44.

2006 5.26 5.77 3.80 6.93 (4.06) 5.64 3.02 5.19

2007 4.96 6.17 3.14 6.88 5.04 5.85 4.50 5.63


ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

5. Inter-regional disparities are not only demonstrated through divergence in economic indicators but also by variations in standards of service delivery. For education, enrollment rates vary widely and regional differences remain more pronounced than differences in income levels2 . While junior high school enrollment rates vary widely between provinces, variations are even bigger differences within provinces. Graph 1 shows provincial enrollment rates (district and city averages) plus highest and lowest enrollment rates within provinces. The data clearly shows variance between provinces and an even wider variance within provinces. Graph 1: Net Enrollment Rates in Junior Secondary School by Province 100 90 80 70 60 50 40 30 20 10

N Iria Pa us n p J a Te aya ua ng B ga ara ra t Ti Ka G mu lim oro r an nta t lo Su an Ba la Ba wes rat i Ka ngk Ba lim a B rat el an it t Su an ung S la Ka we elat an lim si an Ten Su tan gah T la e w es nga iS h el at an M Ba Su alu nte n k m at u U er ta a r Se a la Su ta la w Ja n es m iT b Su e i m ngg at a ra Su era Ba la w es rat iU t La ara m Ja pun w a g Ba ra t B a Ka li li m M an alu ku ta n Ti m ur Ja R ia w a Te u ng Ke Be ah ng N us pu ku la a Te ua lu ng n R ga ia ra u Ja Bar at w a D Tim KI ur J D N I Y aka an r gg Su ogy ta ro ak m e Ac ate art a eh ra U D ar tar us a sa la m

0

Source: World Bank estimates based on 2007 Susenas data

6. For health, outcomes vary widely across Indonesia. The graph below illustrates the wide divergence across provinces (data not available for all provinces) in two key health indicators – infant and child mortality. The y-axis shows deaths per thousand births.

2

Investing in Indonesia’s Education (2007), World Bank Group.

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Graph 2: Infant and child mortality rates

Source: Investing in Indonesia Health (2008), World Bank. Data from 2002/3

7. The government of Indonesia has undertaken many efforts to address shortfalls in basic service provision and a major current initiative concerns the issuance of nationwide minimum service standards as regulated by Government Regulation No. 65/2005. Minimum service standards are to be issued to cover each of the obligatory functions of local governments and additional financing provided through the Dana Alokasi Khusus mechanism to achieve these standards. The DSF will provide support for both of these government initiatives which have implications for the regional development policy3. As minimum service standards are implemented it will be important to assess the extent to which disparities in public service delivery are reduced. 8. Inter-regional development disparities are of great concern to the Government of Indonesia (GoI) – for reasons of equity but also for reasons of national sovereignty. GoI is keenly aware that feelings among ordinary citizens of social and economic exclusion are crucial to such calculations. 9. Like many developing countries, Indonesia has experienced a tumultuous development path over the last few decades. The early years of 1960s saw the economy slip into crisis with spiraling inflation, followed by a period of relative stability. The exploitation of oil and gas reserves coincided with the spike in the world price of oil leading to huge government revenues which were used in part to finance a far reaching development program that had tangible benefits for most Indonesians all over the archipelago. Whilst never attaining the giddy growth highs of the so-called tiger economies, growth was steadily aided by huge inflows of foreign investment and supported by an authoritarian political system. External shocks and inflationary pressures at times undermined continued growth but it was not until

3

4

See: DSF Concept Note on Institutional Building for Improved Public Service Delivery.


ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

the onset of the Asian crisis in 1997 that swift reversals in economic development were experienced which wiped out years of development gains in the space of a few months. 10. The onset of decentralization in 2001 through the implementation of Law 22/1999 saw the devolution of a wide range of responsibilities to local governments. By 2001 recovery was well under way and in 2004 the decentralization agenda was entrenched through a major revision of the decentralization law. Substantial fiscal resources are now controlled by regional governments, especially at the district and city level of government. 30% of total state expenditure was transferred to the regions in 2008 although regional expenditure as a percentage of total national expenditure is even higher as regional revenues are supplemented by locally generated revenue. Total government spending has risen substantially in real terms since 2001. 11. This fiscal transfer has been accompanied by political decentralization whereby district and city heads of governments are elected directly. 12. Predictably perhaps, the results of decentralization to date have been mixed and many local governments have not yet been able to realize the better development outcomes that should be associated with increased fiscal resources and greater local autonomy over expenditure decisions. Significant inter-regional disparities remain. Data on intra-regional disparities in Indonesia are not widely available, but comparative experience from other countries shows that such differences can be exacerbated by decentralization, usually through partial distribution (capture) of services and resources by local elites (Manor, 19994). Questions of intra-regional disparity in Indonesia may prove to be of increasing socio-economic and political significance in the future. 13. Regional disparity represents an ever present challenge in most countries. Comparative evidence shows that the challenges are most pronounced in large developing countries that are unitary states. (Shankar and Shah, 2001)5. Shankar and Shah conclude that in such states regional development policies have not resulted in convergence in regional incomes. Rather, income disparities have continued to grow. They note that federal states have been, perhaps paradoxically, more successful at equalizing economic difference between regions despite their more limited policy options. 14. Development has long been focused on Java-Sumatra-Bali. Kalimantan, in particular, seems to be benefiting from a new wave of economic expansion in Indonesia. Despite the GoI’s efforts to spread development across the country, particularly through the use of the central transfers from the balancing fund development, development continues to proceed at an uneven rate. Resource-poor regions have suffered in particular as they are excluded

4

Manor, J. 1999, The Political Economy of Democratic Decentralization. Washington, DC: World Bank Shankar and Shah, 2001. Bridging the economic divide within nations: A scorecard on the performance of regional development policies in reducing regional income disparities, Washington, DC: World Bank. 5

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from natural resource revenue sharing transfers. Development has also been poor in some regions in eastern Indonesia and in sparsely populated regions (e.g. Maluku and Papua). 15. The World Development Report 20096 has far reaching implications for regional development policy. The main message is that economic growth will be unbalanced (within and between countries) but that development can still be inclusive. The report proposes that spatial transformations will be necessary to achieve this in terms of population density, reduced distances between workers and economic opportunities and reduced economic divisions. The report has a number of implications for Indonesia’s approach to regional policy which will need to be considered within a framework of policy formulation. 16. Given the complex pattern of development across Indonesia in recent decades, the successes and failures of development policy and the ever present issue of regional disparity now is the time to take stock and to reexamine the policy environment surrounding regional development from fresh perspectives. The implementation of decentralization remains the key development issue facing Indonesia. Significant authority has been devolved to local governments but many local governments have limited capacity to execute these new functions effectively. While local governments are now key actors in regional development policy there remains lack of clarity in divisions of authority between levels of government on regional development policy issues. Although this project focus on national policy for regional development the impact, realized and potential, of local governments on regional development policy needs to be bourn in mind. Since the onset of decentralization new challenges have emerged, such as environmental pressures for sustainable development, the commonly stated desire for wider stakeholder participation in development and the impact of globalization on regions. Economic, social and political pressures will continue to evolve requiring sustained and appropriate policy responses to meet these challenges. 17. The activities described in this note are designed to illuminate and improve development policy leading to the reduction of inter-regional disparities in Indonesia. It will do this by: a. Assessing the empirical bases of policy making: what data are currently available? What is the quality of such data, in terms of validity and recency? What gaps exist? b. Examining the extent to which such empirical data inform the policy making process. c. Analyzing the ways in which regional development policies are made and applied and considering how such policy making may be improved. d. Devising a program of professional development for key Bappenas staff to better enable them to initiate and develop policy reformulations for regional development. e. Consulting with stakeholders from each of the 7 regions to elicit substantive regional input. f. Formulating regionally nuanced development policies.

6

6

World Development Report 2009, Washington DC: World Bank.


ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

18. Bappenas has provided a geographic framework within which to assess regional planning and, based on that, to develop new concepts and approaches. Within this framework the country is divided into seven major islands/island groups: Sumatra; Java-Bali; Kalimantan; Sulawesi; Nusa Tenggara; Maluku; and Papua. 19. The Government’s long term and medium term development plans detail the targets and approaches to be used. A central feature of the Government’s Long-Term National Development Plan 2005-2025 is ‘realizing development that is more equitable and just’. GoI is currently preparing the next Medium-Term Development Plan (RPJMN7) for 2010-2014. Bappenas is drafting three major documents for the RPJMN 2010-2014. This activity will, among other deliverables, provide input for the third document paper (Pembangunan Berdimensi Wilayah - Development with a Regional Dimension) which will provide a regional perspective on development planning. The first document in the series concerns the macro framework for planning and the second concerns sectoral planning. 20. Development plans, at both national and regional levels, are elaborated into and synchronized with spatial planning, in terms of substances as well as timeframes. Spatial plans are used as a reference to the spatial implications of sectoral and cross-sectoral. The DSF will shortly begin implementation of a project on the integration of development and spatial plans at national and regional levels8 and reference should be made to this.

21. Although this project represents a modest investment the prospects for leveraging an eventual significant redirection in regional development policy are very strong. This can be achieved by working closely with Bappenas staff, investing in developing staff capacity and developing the necessary consensus within government to affect policy change.

Goal and Objectives 22. The goal of this project is to contribute to a significant reduction in inter-regional disparities through better-informed and better-managed policy making for regional development. 23. The purpose is to build within Bappenas sustainable institutional capability to: (1) assess the empirical basis of existing Indonesian policy on regional development and the policy making process and make recommendations for improvements; (2) disseminate the results and begin to develop a cross-ministerial consensus on new policy approaches and the policy making process; and (3) propose policy recommendations and new approaches to regional development planning that are more appropriate and effective.

7 8

Rencana Pembangunan Jangka Menengah Nasional (5-year national development plan) See: Concept Note: Institutional building for the integration of national-regional development and spatial planning

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24. The objectives are to: a. Provide a brief historical overview of regional development since 1967 (from the first New Order 5 year development plan). A particular focus will be on the transition period from the late 1990s and government initiatives to promote regional development. b. Identify currently available data, data gaps and provide an assessment of available data and how data are used for policy making on regional development. c. Provide an assessment of government regional development policy and policy making processes. d. Disseminate policy review results. e. Develop the in-house capacity of Bappenas to assess and improve regional development policy by improving the skills of key Bappenas staff. f. Assess regional development policy, issues and priorities in the 7 regions and develop a strategy paper for each region and provide a thorough detailing of the policy implications.

Scope of Services 25. The scope of services outlined below encompasses all activities to be completed within a time frame of 18 months. The first part of this project will be conducted in a time frame of 6 months within a budget of US$150,000, as approved by the DSF MC. Upon successful completion, the DSF will seek continued MC endorsement to complete the remaining activities over the course of an additional 12 months. Part 1: a. Write a paper on “Regional development in Indonesia: A review of experiences and achievements�. Bappenas has requested a major stock-taking of regional development planning in Indonesia over the course of the last four decades. This will be used as input for the national RPJM 2010-2014. The consultants will need to work very closely with Bappenas to ensure that priorities are set and that deadlines for submission of input for the next RPJMN can be met. This will mean that the consultants will be required to focus on providing input by September 2009. Work will continue after this deadline and it is expected that further coordination with Bappenas will yield additional input by December 2009 whereupon the RPJM is to be signed by the President. This paper will begin with a literature review. This review will encompass national and international sources, as deemed appropriate. Given the wide scope of the review and the limited time frame it is essential that the consultants present a succinct review of the relevant literature. The literature review will focus on regional development policies and approaches. b. This project aims to affect policy change. To achieve this it is necessary to assess how regional development policy is made and a key part of this is to be provided by conducting an evaluation of available data. The Consultant will conduct an evaluation of national level data and also data specific to the regions. It is probable that the

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ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

focus will be on the seven island regions, as identified by Bappenas, but the Consultant is expected to consider the rationality of this geographic division. This data assessment will include an identification of what data, including maps, are available, data accuracy, what is missing, how it is collected, where it is stored and how (or whether) it is used to inform development policy. c. To effect policy change it is necessary to establish how best to intervene in these complex policy making processes. Therefore, the consultant will be expected to develop and execute a well-thought out strategy for conducting an assessment of policy-making processes which will lead to an assessment of how policy is created, how it is implemented, and recommendations for improvements. d. Assessment of current regional development policy. This will be needed at both the national level and also how it has impacted on the seven regions. e. Conduct a skills needs assessment within Bappenas. This will involve an identification of Bappenas staff who perform key functions related to regional development policy and also an identification of which functions are to be targeted by a capacity building intervention that will best lead to enhanced institutional performance. The consultant will also be expected to draft a strategy for a program of capacity building to be executed in Part 2. f. Consult widely within national government and involve other stakeholders as necessary. g. Consult with stakeholders from the 7 regions to elicit input on regional development policy to date and initial input for the formulation of future regional development policy. Part 2: h. A major part of this work is to shape and redirect policy; therefore significant resources need to be focused on not only disseminating the results of the study but also to elicit input and create a sense of cross-ministerial buy-in. Clearly, high level government endorsement will be required and it is hoped that the coming RPJM, as approved by the incoming president, will lay out the foundations for a redirection of policy on regional development. i. Consult widely with local government representatives, regional experts (including from universities) and private sector representatives. This will continue throughout the course of the project and will need to be conducted in the regions as necessary. j. Conduct a training program for Bappenas staff working in the field of development policy for regions. This is to develop in-house capacity within Bappenas to conduct future assessments and reformulations of regional development policy. k. Develop a specific strategy for each of the seven island regions (or as geographically appropriate) based on their major characteristics and development issues. It is expected that the consultant will take an ambitious approach and seek to determine development strategy, policy and approaches that are suitable for the seven identified regions. This is a complex task which will be informed by the preceding

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work. This work is expected to offer an actionable way forward for regional development to be further elaborated by the respective regions themselves.

Deliverables 26. This covers deliverables over the course of 18 months. Part 1 covers the first 6 months with the approved budget of US$150,000. Part 1 (July-December 2009) Inception report detailing strategy for Part 1 of the project and progress to date.

Time Within two months of project inception

Review paper, including literature review

Within three months

Policy Paper for Bappenas. This paper will provide input for the RPJM 2010-2014. Assessment of policy data Assessment of policy making processes and current regional development policy Training needs assessment and strategy for Bappenas staff training program Paper on input from national and regional stakeholders Part 2 (January-December 2010) Inception report detailing strategy for Part 1 of the project and progress to date. Report on training program for national level government officials Strategy papers for each of the 7 regions.

Within 3 months

Final report

Within 4 months Within 6 months Within 6 months Within 6 months Time Within 14 months Within 16 months Draft within 12 months, final within 16 months 18 months

Sustainability 27. The Consultant will be expected to work in a manner conducive to ensuring sustainability, that is, in a way that ensures that the capabilities required to carry out the work are institutionalized with Bappenas. This will be done through formal education and development, but should also be a central feature of the analytical and consultancy work that is done, perhaps using action learning or a ‘buddy’ system as a means of achieving this. The prospects for sustainability and institutionalization will clearly be increased by the extent to which that work is done in line with local conditions and aspirations; is actionable; and fits within the national development agenda.

Gender 28. It is reasonable to suppose that the effects on women of regional development disparities in Indonesia are different from and probably more severely felt than those

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ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

experienced by men. Therefore, it is incumbent on implementing agents (firms and individuals) to consider carefully the gender ramifications of all activities undertaken in this project. It is expected that issues surrounding gender will be given prominence within the deliverables and that recommendations for future actions will contain a clear gender component. Due consideration should also be given to the gender implications of regional development policy, in order that better development outcomes for women may be realized.

Program Management, Execution and Implementation 29. The role of the Government of Indonesia/Bappenas Capacity Building for Regional Development Policy Formulation is as sponsor/owner of the program with responsibilties for steering, monitoring of program implementation, coordination with the consultants and submission of program documents to the DSF MC. The DSF Executive will be responsible for hiring individual consultants to perform the work commisioner by Bappenas, facilitation of program implementation, and assistance with program monitoring, quality assurance, and along with Bappenas submission of program documents to the DSF MC. The consultants are responsible for implementing the program according to the Terms of Reference; coordinating with Bappenas on a regular basis and submitting reports/deliverables to Bappenas and DSF according to schedule for review. See table below for a summary of roles and responsibilties. Directorate for Regional Development: sponsor/owner of program; responsible for steering, monitoring of program implementation, coordination with consultants and submission of program documents to DSF MC. DSF Executive: responsible for contracting consultants; facilitation of program implementation, assistance with program monitoring and quality assurance, and along with Bappenas, submission of program reports to DSF MC. Consultants: implementation of the program according to the Terms of Reference, coordination with Bappenas on a regular basis and submission of reports/deliverables to Bappenas and DSF for review. 30. Based on the decision of the Bappenas Directorate for Regional Development the activity ‘Capacity Building for Regional Development Policy Formulation’ will be “Bank executed” (responsiblity of the World Bank) through the constracing of short-term consultants. Under this mechanism, the DSF Executive is responsible for ensuring that procurement follows World Bank procedures9 and that the results of the program meet the specified standards. 31. A small team will be formed with representatives from Bappenas and representatives from the DSF Executive to select qualified consultants. The DSF Excecutive will be

9

Procurement in Bank Executed programs will follow the Guidelines: Selection and Employment of Consultants by World Bank, Revised October 2006 using the World Bank e-procurement system.

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ACTIVITY CONCEPT NOTES # 2 | ARRISING FROM THE DSF WORK PLAN 2009-2011

responsible for issuing consultants contracts. During program implementation Bappenas’ Directorate for Regional Development and the DSF Executive will evaluate the reports submitted by the consultants and monitor activities as appropriate. 32. Our policy is to employ the best qualified and experienced individuals and firms to implement the projects we finance; to provide them with clear objectives and guidelines concerning the work that needs to be done; and to be available to help wherever it is requested. The effectiveness of this policy therefore rests heavily on how well the selection of individuals and firms is done and on the quality of the documentation and briefings concerning what is required of consultants. 33. It is crucial to the success of this project that communication from the consultants directed both to DSF and to identified government counterpart, in this instance Bappenas. All DSF activities are derived from direction given by our management structure which comprises members from three government ministries and donor representatives. Activity proposals are developed closely with government counterparts and the government is not just the endorser of the project but also the main beneficiary. Therefore, close cooperation is essential with government counterparts throughout the life of the project. 34. The DSF Executive will gauge project progress on the basis of the periodic reports that it receives from consultants. It will monitor the achievement of agreed activity milestones and project objectives. DSF provides a quarterly report to its partners (GoI and donors). 35. Mode of execution. This activity will be World Bank executed (on-budget, off-treasury). 36. It is proposed to proceed with Part 1 of this project using individually hired consultants. This has several advantages: work can commence expeditiously without a potentially protracted procurement process (thus enabling RPJM deadlines to be met); the type of work in Part 1 lends itself to very well qualified consultants and doesn’t require institutional support; and given the limited budget of $150,000 we can get better value by hiring individual consultants and avoiding institutional overhead costs. It is likely to require several consultants under a team leader. It is proposed to hire a team leader first to start work quickly and to identify suitable consultants in consultation with him/her. 37. Procurement options for Part 2 will be assessed later. An initial assessment is that an institutional setting is advisable given the scope of services and larger budget implied. Given the range of services to be delivered in Part 2 it is possible that some institutions will submit joint bids. 38. Consultants’ qualifications. The lead consultant will have the following qualifications: a. A PhD in a relevant subject preferably related to development planning. b. Over ten year’s work experience specifically in regional development issues in Indonesia. c. A well-regarded academic in his/her field with a substantial body of published work.

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d. An excellent grasp of current and historical regional development issues, preferably with papers published in this field. e. Excellent analytical writing skills with a demonstrated ability to write concisely about a complex topic. f. Substantial experience of leading small working teams and a demonstrated ability of working successfully with a range of stakeholders and an ability to bring together stakeholders to a shared platform. g. Ideally, a strong record of working with regional government representatives. 39. Additional key personnel (for Part 1). a. Regional economics development specialist: Demonstrates an in-depth understanding of regional economics, particularly the island based regional economic development model. Eligible candidates must have relevant academic qualifications especially related to economics development (at least M.A). Has over 5 years work experience (government, non-government, policy research) in regional economic issues in Indonesia. Ideally, has a strong record of working with regional government representatives. b. Decentralization/regional development specialist: Demonstrates an in-depth understanding of regional issues and a demonstrated ability to assess regional development opportunities. Has knowledge of maritime based economic issues a clear advantage. Eligible candidates must have relevant academic qualifications especially related to planning/ development study (at least M.A). Has over 5 years work experience (government, non-government, policy research) in regional development issues in Indonesia. Ideally, a strong record of working with regional government representatives. c. Capacity building specialist: Demonstrates an expertise in conducting capacity building needs’ assessments. Has substantial experience in designing and managing capacity building programs for government staff. 40. Additional anticipated staffing needs (for Part 2) a. Sociologist: Demonstrates an in-depth understanding of islands in Indonesia including: societies’ behavior and cultures of each island in order to explore the human capital opportunities and threat to island development. Eligible candidates must have relevant academic qualifications especially related to regional sociology (at least M.A). Has over 5 years work experience (government, non-government, policy research) in regional sociology issues in Indonesia. Ideally, has a strong record of working with regional government representatives. b. Environmental specialist. Demonstrates an in-depth understanding of regional issues specifically related to the island context Indonesia. Eligible candidates must have relevant academic qualifications especially related to environment (at least M.A). Over 5 years work experience (government, non-government, policy research) in regional environment issues in Indonesia. Ideally, a strong record of working with regional government representatives.

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c. Specialist on international/regional (Southeast Asia context) economics. Demonstrated expertise in being able to understand and develop strategies for the regional development in an international context. Eligible candidates must have relevant academic qualifications especially related to international economics (at least M.A, preference PhD). Over 10 years relevant experience and for international candidates at least 5 years in Indonesia. Ideally, a strong record of working with both national and regional government representatives. d. Local experts (seven): Regional specialists from the local government and academic institutions who have an in-depth understanding of the regional development issues in their own region. One for each region: Sumatera, Sulawesi, Kalimantan, Java-Bali, Nusa Tenggara, Maluku, Papua.

Procurement and Implementation Schedule 41. Procurement and Implementation schedule for this project :  June 2009: MC approval of Activity Concept Note. Preparation of Expressions of Interest. Posting on World Bank E-Consult system and in national media. Evaluation by DSF/Bappenas. Contracting of Team Leader. Identification of support consultants and contracting.  July 2009: Beginning of project. Identify stakeholders, conduct consultations, and begin review paper. Begin assessment of regional development data, policy processes and current policy.  August 2009: Submit draft review.  September 2009: Presentation of Inception Report, including final Review paper and submission of draft paper for RPJM input deadline (30 September).  October 2009: Drafting of paper on assessment of data, policy processes and policy.  November 2009: Submission of draft paper on assessment of data, policy processes and policy. Review of draft RPJM, as requested.  December 2009: Submission of final paper on assessment of data, policy processes and policy. Presentation of Part 1 to Bappenas, ministries and regional government representatives. Dissemination and consultation.  January 2010: Finalization of procurement for Part 2.  February 2010: Consultations.  March 2010: Development of regional strategies. Capacity building for Bappenas staff.  April - July 2010: Development of regional strategies. Capacity building.  August 2010: Submission of draft report of regional development strategies.  September 2010: Finalization of 7 strategies. Submission of draft report on training program.  October 2010: Submission of report on regional strategies. National workshop. Submission of final report on training program.  November 2010: Follow up and revisions.  Dec ember 2010: End of project, final report.

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Budget 42. A summary of the main categories for Part 1 is as follows: Estimated Cost (USD) Consultant Services Individual Consultant

32,500 20,000 20,000 20,000

Training and Workshop Operational Expenses Total Budget

Description

Lead consultant Regional economics development specialist Decentralization / regional development specialist Capacity building specialist

30,000 20,000 142,500

Travel

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