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DECENTRALIZATION SUPPORT FACILITY ACTIVITY CONCEPT NOTE 4/2009 Summary: This activity is designed to: 1) strengthen the capability of service providers to assess and improve their own performance based on fundamental aspects of management and institution building; 2) support local government to be more flexible in defining strategic options for improved performance in service delivery; 3) formulate guidelines (and a model) for strategic management and institution building for local service delivery providers; and 4) develop an action plan for scaling-up nationally the strategic management and institution building model for improved service delivery.
Activity Title Management Strengthening and Institution Building for Local Public Service Providers (MSIB-LPSP)
Counterpart Agency and Key Government Contacts Ministry of Home Affairs, Directorate General of Public Affairs (Ditjen PUM): a. Drs. Norman Muhdad, Director of Deconcentration and Cooperation b. Drs. Arif Rahman, Sub-Directorate of Public Service c. Secretariat Directorate General of Public Affairs (Setditjen PUM), Planning Division Ministry of Home Affairs, Secretariat General, Foreign Cooperation Center
Duration October 2009 – September 2011
Background and Rationale 1. This project builds on the DSF project entitled, ‘Alternative Mechanisms for Service Delivery’ (AMSD), which will end in July 2009. Ministry of Home Affairs (MoHA), Director General of Public Affairs wishes to implement the model developed by AMSD and to commence capacity and institution building for a sample of local governments and MoHA staff in selected regions. 2. Decentralization and public services. Indonesian decentralization reform began in 1999 following the issuance of Law 22/1999 on Local Governance, later revised by Law 32/2004. This law and its follow up regulation on distribution of functions has given broad authorities and functions to kabupaten and kota to implement local autonomy, including responsibility and authority to improve public service delivery in accordance with local priorities and the needs of the local community. In the same year, a fiscal decentralization law 25/1999 was issued, and later revised by Law 33/2004. This law provided broad discretion to local governments over the use of general block grants (DAU) and tax sharing funds. In addition, local governments were provided with grants (DAK), allocated to and managed by regions
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with specific direction from central government concerning their use for certain types of service delivery.1 3. Problems and initiatives on public service delivery. Despite these initiatives, access to basic services by citizens is limited, mostly in education, health and infstructure, including social infrastructure. (World Development Report – 2004). For example, maternal mortality rates are high, as is the incidence of preventable diseases such as malaria; and there are shortages of health professionals and their distribution is not optimal. Mandatory health insurance funded throught the public budget now covers an estimated 76,4 million poor and 2 near poor, but severe public health problems remain. In the education sector, the enrollment rate of primary and secondary education has not reached the target of 100 percent of children attaining 9 years of compulsory basic education, but good progress has been made. Law 20/2003 on National Education System requires the state to allocate 20% of national total budget to improve education. On water, operational water supply systems have been established in about 1,206 villages covering some 3 million villagers, but progress in improving sanitation services has been inadequate.3 Over the next five years, government plans to install 10 million new tapped water connections. Furthermore, the government has undertaken to ensure the attainment of MDGs . 4. Central government is aware that problems of basic service delivery must be addressed. The National Fiscal Decentralization Action Plan (2005) commits government to improving basic public services, especially in health, education and infrastructure. One of the means to improve accessibility and quality of those services is through the identification and implementation of minimum service standards, as mandated in law 32/2004 on local governance. 5. The government also recognizes that there are widespread and significant weaknesses in the management of service delivery. Most provinces and kabupaten/kota deliver public services directly through local service units (dinas) and their implementing facilities (e.g. Schools, puskesmas). In a limited number of special cases, local government-owned enterprises are the public service providers (as with local government owned water enterprises - PDAM). Although BLU4 and BLUD5 exist on paper (Government Regulation 1
DAK 2009 covers sectors and subsectors of education, health, infrastructure-road, irigation, drinking/clean water, sanitation, marine and fishery, agriculture, government insfrastructure, environment, family planning, forestry, village insfrastructure, and trade. 2 Health Financing in Indonesia: A Reforms Roadmap, The World Bank Report, Conference Edition, May 2009, Overview, page xiii, xiv. 3 World Bank Country Partnership Strategy for Indonesia FY 2009-2012, Page 62 4 BLU-Badan Layanan Umum: Public Service Organization is an institution within Government setting which is established to deliver services to public by selling goods and/or services with no priority for profit. Its operation will be based on efficiency and productivity principles. (Government Regulation No. 23/2005 on Financial Management of BLU, Chapter I, Article 1, Point 1) 5 BLUD-Badan Layanan Umum Daerah: Local Public Service Organization is a local sectoral office (Dinas/Kantor/Badan) or working unit under local sectoral office which is established to deliver services to public by selling goods and/or services with no priority for profit,. Its operation will be based on efficiency and productivity
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No.23/2005 concerning Public Service Organization – Badan Layanan Umum, BLUD (Badan Layanan Umum Daerah – Local Public Service Organization), they have been used very little to assist in the delivery of public services at the sub-national level and the formal use of private sector entities to deliver public services is also limited. 6. Reinventing government. As with governments officials elsewhere, in their attempts to reform the civil service, Indonesian government officials have been exposed to successive waves of fashion concerning public management, such as the ideas espoused and popularized by Osborne and Gaebler (1992). 6 Many civil servants in Indonesia have received training on the ten operating principles that distinguish a new "entrepreneurial" form of government. Osborne and Gaebler suggest that governments should: 1) steer, not row; 2) empower communities to solve their own problems rather than simply deliver services; 3) encourage competition rather than monopolies; 4) be driven by missions, rather than rules; 5) be results-oriented by funding outcomes rather than inputs; 6) meet the needs of the customer, not the bureaucracy; 7) concentrate on earning money rather than spending it; 8) invest in preventing problems rather than curing crises; 9) decentralize authority; and 10) solve problems by influencing market forces rather than creating public programs. Osborne and Gaebler admit that their writing does not offer original ideas; rather, it is a compilation of the ideas and experiences of others. 7. Administrative reform and management innovation. Management innovation and administrative reform both involve novelty – doing the same things differently, or doing new things, in relation to the management of the behavior of people and organizations. What is mundane or outmoded to some can clearly be revolutionary and appropriate to others. It is argued that the emphasis should be placed on the peculiarities of public service problems and their settings, and that solutions should be tailored to these circumstances rather than force-fed into predetermined off-the-shelf solutions that attempt to reproduce in developing countries prevailing notions of so-called “best practice” in the rich countries. It is also important to consider the extent to which “public service performance and management improvement is hostage to overriding forces associated with the character of governance and the nature of society in general”. Institution and capacity building should not be analyzed and conducted as if in a vacuum. 7 8. Alternative Service Delivery (ASD). Ideas associated with ASD have gained some currency in Indonesian government circles. As with other supposed ‘innovations’, the ideas themselves are not particularly new. It is a Canadian term that has been popularized under principles. (Ministry of Home Affairs Regulation No. 61/2007 on Technical Guidance for Financial Management of BLUD, Chapter 1, Article 1, Point 1) 6 http://www.scottlondon.com/reviews/osborne.html downloaded in June 1, 2009, Osborne and Gaebler, Reinventing Government, 1992 7 Peter Blunt, Public Administrative Reform and Management Innovation for Developing Countries, a paper presented at Fourth Global Forum on Reinventing Government organized and sponsored by The United Nations Division for Public Economics and Public Administration of the Department of Economic and Social Affairs (New York), and held in Marrakesh, Morocco, 10-11 December 2002.
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many names and in many different forms in OECD countries. It is often understood differently by different people. ASD is defined by Ford and Zussman (1997:6) as: "… a creative and dynamic process of public sector restructuring that improves the delivery of services to clients by sharing governance functions with individuals, community groups and other government entities." 9. ASD includes reorganization and reengineering of mainstream government and also privatization. It is not just about deficit reduction, devolution, and central agency controls, but it does involve rethinking roles and functions. It depends heavily for success on a strong policy foundation and on a client service focus, neither of which can be said to exist in Indonesia. Ford and Zussman have described ASD as follows: “The forest is the public sector in total; the trees are the traditional, vertical delivery systems; the mists are the uncertainties of change; the shapes are emerging forms of alternative service delivery. It is clear that more and more of 8
the shapes are distinguishable as new or innovative- as true alternatives.
10. The term ‘alternative mechanisms for service delivery’ (AMSD)9 is frequently used with similar purposes in mind and covers broadly the same ideas, including what would conventionally be termed ‘institution and capacity building’. Hence the title of phase 1 of this project, referred to earlier. The AMSD phase was ‘novel’ in the sense implied by Blunt (2002)10 in that it introduced the ideas espoused by Osborne and Gaebler, and some derived from the ASD as well as more conventional notions of institution building and organizational development, into settings where they had not been applied before. 11. Other government initiatives. In its attempts to improve the quality and timeliness of services delivered to citizens, the Government has done, and continues to do, a great deal, including: 12. The establishment of one stop services. The notion of ’one stop services’ (OSS) has developed quite fast in the country, under a variety of somewhat similar names such as ‘one door’, ‘one window’ and ‘one roof’. To date, 143 ’one roof’ services and 131 ’one door’ have
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http://www1.worldbank.org/publicsector/civilservice/alternative.htm, downloaded from the World Bank Group Web: Governance & Public Sector Reform Sites, per June 1, 2009; Ford and Zussman, eds.1997. 9 Alternative Mechanism for Service Delivery (AMSD) is a particularly Canadian term used to describe an array of methods government has in delivery services, this also often called “New Public Management”, “Contractualization”, and “new managerialism” (see Blue Print for Promoting AMSD, June 4, 2009, page 1). 10 Peter Blunt, Public Administrative Reform and Management Innovation for Developing Countries, a paper presented at Fourth Global Forum on Reinventing Government organized and sponsored by The United Nations Division for Public Economics and Public Administration of the Department of Economic and Social Affairs (New York), and held in Marrakesh, Morocco, 10-11 December 2002
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been established in 29 provinces There are at least 76 OSS supported by international agencies11 . 13. The introduction of minimum service standards. The formulation of minimum service standards (MSS) began in 2000. To date, MSS in five sectors have been issued (health; environment; social; public housing and general public affairs, which includes population administration). A number of other sectors are working on draft MSS (women empowerment, education, public works, and food security). The Ministry of Health is among the most advanced in relation to MSS and has just issued a new Permenkes No. 317/MENKES/SK/V/2009 on Technical Guidance for Costing MSS Health Achievement (May 2009). An electronic template for data/information processes required in MSS costing is being developed. DSF, together with MoHA, supports the Ministry of Health in its costing of MSS. 14. Encouragement of inter-regional cooperation in public service delivery. This initiative was first introduced in 1999 through law 22/1999. Inter-regional cooperation is exercised in many ways, among others: cooperation among two or more neighbouring regions and among regions that geographically distant from one another. A successful example of interregional cooperation among three neighbouring regions is Kartamantul, comprised of Kota Yogyakarta, Kabupaten Sleman and Kabupaten Bantul. This cooperation is facilitated the province level. GTZ-Good Local Governance-GLG is supporting the operationalization of Kartamantul Secretariat and supporting substantive activities like spatial planning. A government regulation on Procedures for the Implementation of Cooperation among Regions No. 50/2007 is in place and Minister of Home Affairs Regulation No. 23/2009 on Guidance and Supervision of Inter-regional Cooperation has been issued. CIDA-GRS II GTZGLG was supported this activities. 15. Permitting ‘outsourcing’ of service provision to private sector or civil society entities. Government has practiced outsourcing in delivering public services, such as garbage collection. In the bureaucracy, a wide variety of support staff positions and services are outsourced. 16. MoHA has developed a service contracting scheme for local government referred to in Presidential Regulation No. 67/2005 on Cooperation between Government and Enterprises. Five modules have been formulated and introduced to regions i.e. Introduction of KPP12; Assessment of KPP Potential; Assessment of SKPD preparedness to implement KPP; Preparation for Implementation of KPP; and Management of KPP. The modules introduced different types of contracts (operational contract, joint contract, service contract, management contract, rental contract and concession contract). In May 2009, MoHA issued
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The international agencies, among others The Asia Foundation, implementing agency of DSF support project to MoHA, Investment Climate, Presentation of Study results on Mapping OSS, April 29, 2009 12 KPP is Kontrak Pelayanan Publik or Service Contract for Local Goverment
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another regulation, Minister of Home Affairs Regulation No. 22 on Technical Guidance of Regional Cooperation, including cooperation of local government with other parties. 17. Implementing citizen complaints surveys to improve public services. The State Ministry of Administrative Reform (Kementrian Pendayagunaan Aparatur Negara-KemPAN) in cooperation with local government and supported by GTZ-SfGG have carried out citizen complaints surveys to improve public services, e.g. in puskesmas (public health centre at sub district level), schools and other public services. Printed manuals and CD ROMs are available. KemPAN has helped more than 200 local governments to carry out citizen complaints surveys. In 2006, DSF in cooperation with the World Bank, conducted a citizen satifaction survey (GDS) in 29 provinces, 111 kabupatens and 23 kotas. 18. The solicitation of citizen feedback on services electronically and in other ways (SPIPM-Sistem Pelayanan Informasi dan Pengaduan Masyarakat). This is a new approach introduced by MoHA, Directorate General of Public Administration (Ditjen PUM) supported by USAID-LGSP to encourage kabupaten/kota to be more transparant and to listen to their citizens. Complaints, feedback and questions can be directed to a dedicated telephone number by SMS or to a local government website. Local Government responds electronically. Aceh is well advanced in the implementation of this innovation. Ten other provinces are doing the same thing, as are 6 kabupaten/kota. There are 60 other kabupaten/kota in the process of implementing similar systems.13 19. Introduction of ‘one door’ services in Kecamatan level. Based on experience in Aceh (50 kecamatan in four kabupatens)14, MoHA, Ditjen PUM supported by AusAid-LOGICA has recently issued guidelines for the improvement of public services in kecamatan. Measures include: delegation of local government functions to kecamatan level; and establishment of one stop services in kecamatan (one door). These initiatives are described in a Circular Letter issued by the Minister of Home Affairs No. 100/121/PUM on Strategic Initiatives for Improvement of Public service delivery in regions, dated February 3, 2009. AusAid-LOGICA 2 will continue support the activities in other regions. 20. Transformation of local government service units (Dinas, UPTs) to BLUD-Badan Layanan Umum Daerah (Local Public Service Agency). BLUD (Badan Layanan Umum Daerah-Local Public Service Organization) has been regulated in Government Regulation No.23/2005, but few regions have implemented it. In current practices, provinces and kabupaten/kota deliver public services directly through local service units (dinas) and their implementing facilities (e.g. schools, puskesmas), in most cases, local government-owned enterprises (BUMD -Badan Usaha Milik Daerah). Attempts have been made to transform government universities and hospitals into BLU/BLUD. MoHA has developed guidelines (Regulation No. 61/ 2007) for managing the financial aspects of BLUD.
13 14
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Discussion with Adam Nugroho, USAID-LGSP, on June2, 2009 Phone discussion with Moh. Najib, AusAid-LOGICA, June 2, 2009
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21. Law on Public Services. Recently, the government and DPR (Parliament) issued Law No. 25/2009 on public services. This law stipulates rights and obligations of executing and implementing agencies/service providers and citizens/community. The law also encourages transparency in public service delivery; it regulates service standards, information systems on public services, complaints, and establishes an ombudsman. Management strengthening and institution building of local service providers is one important way to improve the performance of service providers. Performance contracts/agreements between service delivery providers and local government offices/heads of region introduced in this project reflect government commitment to improving public service delivery. 22. AMSD Phase II or Strengthening Management and Institutional Building for Local Public Service Providers (SMIB-LPSP). The current support provided by DSF to MoHA, Ditjen PUM in Alternative Mechanisms for Service Delivery (AMSD) will end in June 2009. An output of this project will be a plan for the implementation of AMSD in a number of pilot regions. The project outlined in this note will undertake this work under the title Strengthening Management and Institutional Building for Local Public Service Providers (SMIB-LPSP) or Penguatan Manajemen dan Pengembangan Kelembagaan Penyelenggara Pelayanan Publik (PMPK3). 23. As a part of its general drive to improve the quality of services, and to consider alternative mechanisms of service delivery, MoHA is in the process of establishing general means for analyzing and developing the performance of service delivery units or organizations; and building within the MoHA (Ditjen PUM) and selected local governments sustainable internal capacity to carry out such institutional reform. 24. A central feature of such institutional reform or institution building will be a ’Flexible Performance Agreement or Performance Contract’ between local government and local service providers. It is envisaged that these performance agreements will be made in relation to: a. Organizational strategy and structure. Does the service delivery unit in question have clearly articulated and well thought through: Goals and objectives Roles and responsibilities Delegation of authority and the relationship between authority and responsibility or between the decision maker/owner and the executor/operator. Out-sourcing of functions (services) This will require local governments to clarify strategies and structure so the service delivery organization (SDO) knows what is expected and all relevant parties know their roles. One possibility will be to out-source service provision. b. Human resource management. How well does the service delivery unit in question attend to: Selection and placement and induction and training
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Performance management Transparency and fairness Here the intention is to make the SDO more effective, empowered, autonomous, and results-oriented, partly by ensuring it has capable people; and partly by introducing greater flexibility, which will be possible on an SDO by SDO basis as part of the negotiation of the flexible performance agreement. Basically, as each SDO enters into a Flexible Performance Agreement (FPA), more authority over the above issues should be passed to the SDO. The BUMD and BLUD legislation enables this but it is currently rarely used; it will be more of a challenge for the current Dinas – for example, Dinas responsible for population administration and civil registration in Kabupaten Serang. c. Organizational culture. Is the service delivery unit in question conscious of the following aspects of organizational culture: service or customer orientation, integrity, leadership, and commitment? The target SDOs under the pilot are all aware of the devastating effects of the current civil service culture. The question is more "can they do anything about it"? More control of HRM by the SDO should open the way to better practices. There is plenty of legislation on customer orientation, integrity etc., but it is not having much effect at present. The leadership training is weak and commitment to a culture of service is just beginning, with efforts to produce codes of conduct. In another words, the reform should include how to improve the employees’ habits, minds, and heart. d. Covering the costs of service delivery. Is cost recovery appropriate for the service (s) selected? If so how is it done? In general, it should not be taken for granted that cost recovery for service delivery is an appropriate overarching goal. Should it be deemed appropriate, there are a number of ways in which it can be implemented: User pay mechanism: enable the service provider to collect payment directly from the user/beneficiary Public service obligation payment: public service obligation of government to the service provider to cover the cost of that portion of the service the user is unwilling or unable to pay Public funding (public budget allocation) mechanism The user pays indirectly through general taxation, perhaps special charges, retribusi – levies by the government Equity financing: investment/injection (shares) in the service deliverer from government and private sector, most often without being related directly to performance Debt financing: Funding by loans from various financial institutions (debt financing) with the pledging of assets, securitization of cash flow or other mechanisms of guaranteeing (securing) repayment of the debt
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Unsecured borrowing: Using bonds that have limited or no resource i.e. that do not use specific guarantee.15 On the three pilots, the local government owned water enterprise (PDAM) in Kota Cilegon selected a cost recovery strategy. Hospital services in Kabupaten Lebak can recover costs for certain procedures and classes of customers. But on population administration, the cost recovery may go through a "group service" they are trying to arrange. The AMSD suggests services are paid for (by funding levels or by the customer on a performance basis, not input basis). e. Out sourcing. Is this appropriate for the service(s) selected? If so, how is it done? In Banten, for example, there is already a surprising number of water systems that are out-sourced, but it is not a formal policy and the regulations can be interpreted to mean that the PDAM could stop it. Some in the pilot workshop concluded a PERDA was needed to put it on a formal basis. One issue with outsourcing is that not enough pressure is being put on SDOs to consider outsourcing "inputs" into their overall production process. For RSUD in Lebak, understanding of the health sector in general, there is nothing in the law stopping the government outsourcing all services. The move of the RSUD to BLUD status represents the first step in the region. For population administration, the standard response is that the Law 23/2006 on Population Administration explicitly prohibits any outsourcing but this was challenged in the pilot workshop. The GTZ consultant who supported the government draft law admitted upon challenge that it was in fact unclear / untried. The situation in general in Indonesia is that the biggest obstacles to more outsourcing are (I) ideological / political and (ii) lack of specificity in the laws and regulations. f. Inclusiveness, community integration and gender sensitivity. This will include: Involvement of civil society and the private sector Community engagement Analysis of service provision in relation to gender Examples of civil society involvement include customer charters; citizen complaint surveys implemented by many regions; and citizen report cards. Government Private Partnership was introduced to improved service delivery. The companies’ contribution could be in terms of ‘in kind’ or monetary funds. Usually, the private company supports the project related to their products. Experience of the Aceh Tsunami reconstruction program tells us that many private companies created partnerships with other donor agencies, or with government to implement a project/program, for example Holcim cement factory to support rebuilding the houses. In addition, the community can provide professional knowledge and labour. 25. Using the framework outlined above, it is intended that an action plan for management and institution building will be drawn up, which will form the basis of the performance agreements mentioned above. The MoHA has determined also that to begin with it wishes 15
Blue Print for Promoting AMSD, Element 2: Alternative Mechanism Arising from the element 2: Covering the Cost of Service Delivery, June 2009
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to trial such institution building with a limited number of service delivery organizations in selected sectors, initially: health; drinking water; and population administration. These pilots 16 or trials, which will be based on ‘action learning’ , will be targeted at a sample of hospitals, water companies, and population administration units; and will be carried out with a view to achieving the goals and objectives set out below.
Goal and Objectives 26. The goal of this activity is to improve the performance of public service providers in the regions by strengthening management and other institutional aspects; and to build the capacity of the Directorate General of Public Affairs to implement a general approach or model of strategic management and institutional development for public service delivery providers. 27. The objectives are to: a. Establish a procedure or model for organizational analysis and development or institution building b. Build the capacity of local service providers in the regions to apply institution building and strategic management techniques to their own organizations c. Enhance the capacity of Directorate General of Public Affairs to develop a general means, including guidelines and modules, for implementing the strategic management and institution building model d. Develop an action plan for scaling-up the strategic management and institution building model for improved service delivery nationally
Scope of Services and Sub-activities 28. The scope of the activity includes: a. Conducting baseline study on women’s access to public service delivery in selected sectors. b. Development of the strategic management and institution building model. c. Implementation of the model in selected piloted sectors, selected piloted provinces kabupaten, and kota. d. Assessment and recommendations for the drafting of different forms of legislation to support the above. e. The development of a capacity building program for Ditjen PUM/MoHA staff that includes significant elements of action learning. f. Developing a dissemination strategy for a wider implementation of the model. 29. Sub-activities: 16
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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a. Baseline Study for women’s access to public services in the selected sectors in pilot regions. b. Development of the institution building procedure or model for implementation in pilot regions: Determine district/cities and type of services that will be improved Identify parties to be involved in the region. Prepare material/modules for assessing services and organizations. Conduct a series of workshops in the selected province and kabupaten/kota to assess the defined services and related policy making parties and service delivery organizations in order to develop preliminary action plan. Sign agreements between the parties involved for pilot implementation and division of responsibilities and tasks. One of the pilot regions, Banten Province, has selected two kabupaten and one kota. Kabupaten Lebak will improve service delivery in district hospital; while in Kabupaten Serang the aim will be to improve services in population administration; and Kota Cilegon will focus on improving delivery of clean water. The second province is West Java. The kabupaten/kota and type of services will be defined during the second phase of the activity. c. Implementation of the instituion building model in pilot regions. Review and elaborate the preliminary action plan. Assess the existing laws and regulations related to the services/sector selected. Deepen the understanding of the selected strategies. Arrange consultations between Head of Region/Regional Secretary, Dinas, Local Service Unit/Service Delivery Organization, between the “policy maker” or owner and “operator” to establish a 'flexible performance agreement'. Implement the action plan: It is possible that this step could require the revision of local regulations; development of new procedures; organizational restructuring; rotation of human resources etc. d. Preparation of draft changes to the regulatory frameworks that are needed to support the implementation of institution building strategies, including, among various activities: Regulations for the implementation of flexible performance agreements. Regulations for output-based funding subsidies using the Public Service Obligation (PSO) mechanism. Regulations for increasing rewards and punishment related to performance. Regulations for the implementation of customer and public participation systems in service delivery. Regulations for allowing certain exceptions/flexibilities for selected institutional options used to improve public service delivery. Regulations for promoting opportunities to restructure sectors, including increasedpublic private and community participation.
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e. Capture and disseminate information on the pilots and other service improvement initiatives, including: Package/document of lessons learned, successes and failures of the pilot implementation. Baseline conditions in the service. The basis for the strategy used to improve the performance, in line with the conditions in the relevant local government and the particular public service. Regulatory framework that has been developed to support the strategies. System and procedures developed to support the pilot implementation. Performance indicators and standards that are used, including the process of development. Work mechanisms that respond to the needs of relevant stakeholders, etc. National workshops to discuss and share the results and explore possibilities for replication. Formulate legal product (circular letter) for dissemination. Network region (peer to peer learning) for the implementation. Expand the application of the model. f. Capacity building for personnel and organizations, including: Preparation of targeted training modules, such as : (1) knowledge of basic strategies for institutional building, and instruments to realize these strategies; (ii) change management; (iii) performance measurement; (iv) preparation and negotiation of flexible performance agreement (KKF); and (v) monitoring of implementation etc. Comparative study trips and exchange of information. Restructuring sectoral governance and implementation arrangements at regional and central level. Improving customer service capacity (front line personnel). Developing funding mechanisms for improving capacity of personnel and organizational development. g. Development of a policy brief on ‘Strategic Management and Institution Building for Improved Public Service Delivery’.
Deliverables 30. Expected Results to be achieved. The activity will produce the following products: First Part a. Report of the Study of womens’ access towards public services in selected sectors in selected pilot regions, including recommendations for program of improvement of women’s access to public services. b. Report on preliminary preparation for new pilot region (West Java) and confirmation on the Kabupaten/Kota that are selected as pilots and the public service sectors and functions that will be selected.
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c. Report on preparatory work for Implementation in existing pilot regions in Banten, Kabupaten Serang, Kabupaten Lebak dan Kota Cilegon. d. Materials to support the Secretariat for the Technical Working Group on Improvement of Public Services. e. Monthly reports of project progress from consultants recruited to support DG. PUM f. Report of Monev on project implementation. Second Part 31. At the end of the project the following results are expected to be achieved: a. Tested institution building model - designed in pilot sectors and pilot regions - that is ready to be replicated b. Improved regulatory framework to support the implementation of the institution building model. c. Revised regulations in regions and recommendations for national regulatory framework reform across sectors. d. Selected sectors/functions that demonstrate “best practice” service delivery using the strategies in the institutional building model, which can then be used as a reference by other work units or other local governments in Indonesia. e. Compilation of data and information for dissemination regarding success factors for sectors/functions and local governments that have implemented “good practices” f. Increased women’s accessibility toward public service delivery in the sectors/functions selected in this activity. g. Capacity building programs for personnel in the target local government and Directorate General of PUM (General Public Affairs) to enable the to understand their role in programs to improve service delivery; h. A functioning “Program or Service Improvement Management Unit”, which will coordinate all activities to produce these outputs, probably consisting of (i) Technical Working Group (TWG) on Improvement Service Delivery; and (ii) A Secretariat supporting the TWG. i. A plan for scaling-up the program nationally. 32. The implementing agency will make sure the above results will be performed and delivery their associate reports and submit the following main reports: a. Inception Reports and associated reports including assessment of local government needs in improving public services; Pilot design for two provinces, Joint agreement between central government, provincial and district/city government; Document on the establishment of regional teams; Pilot implementation plan; Inventory and analysis of the framework in accordance with selected strategies for the new sectors; Capacity building plan for local governments and MoHA, Ditjen PUM. b. Report on pilot implementation in the regions (stage 1), including selected institution building model; targeted public services; capacity building program; performance standards, service standards, gender perspective, regional workshops reports,
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milestone achievement in at least in two sector implementation, including assessment of women’s access to public services in two sectors. c. Report on the pilot implementation (stage 2), including among others flexible performance agreements; documentation of ‘good practices’ of improved service delivery; report concerning results of implementation in pilot regions for each of sector/functions; recommendations for regulatory changes in the regions; workshops/seminar reports both in the centre and regions, including assessment on women’s access to public service. d. Final report including: (a) institution building model that reflects all lessons learned; (b) capacity building programs for MoHA officials and service providers; (c) recommendations for regulatory change at the national level; (d) a general discussion of the project’s findings for the improvement of service delivery; and a plan for scaling-up the program nationally; national workshops; gender mainstreaming in public service delivery based on model implementation in the pilot regions. e. Policy Briefs.
Sustainability 33. If the model is successfully implemented in the regions, the Directorate General of Public Affairs (Ditjen PUM) plans to scale up the program through application of the model in other regions and other sectors. The model will be included in a circular letter to support local governments in understanding the model and implementing it in their regions. In addition, sectoral ministries will evaluate and revise the related sectoral rules and regulations based on inputs from the pilot regions. 34. The independent local institutions involved in the activities will provide continued support to local governments, disseminate knowledge, and assist other government technical units (SKPD) to implement the model. 35. Local governments could promote “peer to peer learning” and share their experiences with other regions planning to implement the model, They could accommodate visiting missions to study the implementation of the model, and accept local government staff from other regions as interns or temporary residents so they can learn the steps and technical requirements for implementation of the model first hand. Data and information from the model implementation in each sector can be shared and with other regions and/or submitted to central government.
Gender 36. A gender perspective should be addressed in the Institutional Building for Improved Service Delivery activity. It will cover, among others, services in health service delivery by local hospitals, provision of clean water by Local Government Owned Enterprise for Clean Water (PDAM) and Population Administration (Dinas Kependudukan or other name).
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37. Analysis of the increase in women’s access to public services such as health services, clean water, and administrative services will be incorporated into the activity through collection of baseline data and tracking of improved women’s access to the various services that are chosen for implementation of the services model. For example, in provision of health services, the increase in number of women with access to midwives and health clinics and/or provision of women’s health services in existing clinics can be encouraged and tracked. 38. In addition, the implementing agency should incorporate a gender perspective in model design, implementation and evaluation result. Both women and men from service delivery units should be given opportunities to participate in the project and gender disaggregated data on participation of women in the project should be collected.
Project Management, Execution and Implementation 39. Considering the timeframe allotted for the implementation of the activity, procurement processes and the nature of work to be performed, the execution of the activity will be a combination of GOI/recipient executed (Grant in Cash) and WB executed (Grant in goods and services). 40. The role of the, Director General of Public Affairs (Ditjen PUM), Ministry of Home Affairs is as sponsor/owner of the project with responsibilties for procurement and contracting of the implementing agency; steering and facilitation of project implementation; coordination with local governments; jointly with DSF Executive, monitoring and evaluation of project implementation, and for submission of project documents in coordination with DSF Executive to the DSF Management Committee. The DSF Executive will arrange for the implementation of preliminary activities. Among others, this will include a base line study for women’s access to public services, preparation of the pilot region, facilitation of the implementation of preliminary activities, procurement and contracting of consultants, and quality assurance; and jointly with MoHA: monitoring and evaluation of project implementation, and submission of the project implementation report to the DSF Mc. The implementing agency is responsible for implementing the program according to the terms of reference, techncial proposal and financial proposal; coordinating with MoHA on a regular basis, and submitting reports/deliverables to MoHA and DSF Executive according to schedule for review. The local governments (pilot regions) will be responsible for producing work plans and implementing the model in line with direction from the implementing agency and MoHA (See table below for a summary of roles and responsibilties). They will provide a regional team to support model implementation and relevant counterpart funding for operational costs. MoHA Ditjen PUM: sponsor/owner of program; responsible for procurement and contracting of implementing agency, steering the implementing agency and facilitating project implementation; coordination with local government; approving the detailed activities and model design; monitoring of program implementation; and submission of
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ACTIVITY CONCEPT NOTES # 4 | ARRISING FROM THE DSF WORK PLAN 2009-2011
project implementation reports in coordination with the DSF Executive to the DSF MC. DSF Executive: responsible for procurement and contracting of consultants and facilitation of program implementation for preliminary activities; assistance with monitoring and quality assurance of project implementation; and, jointly with MoHA, submission of project implementation reports to the DSF MC. Implementing Agency: implementation of the program according to the terms of reference, technical proposal, and financial proposal; coordination with MoHA on a regular basis (including one key personnel based in MoHA), and submission of reports/deliverables to MoHA and DSF for review. Local Government (Pilot Regions): responsible to produce work plan and implement the model with facilitation from implementing agency and MoHA including establishment of a regional team to support model implementation and counterpart budgets to cover operational costs incurred by the local governments. 41. MoHA is expected to provided counterpart funding for aspects of the project not covered under the contract with the implementing agency.
Implementing Agency 42. The first part of the project is implemented by short term consultants who will be recruited by the World Bank according to the Bank Executed regulation. 43. In implementing the first part requires consultants as follows: a. Consultant - gender b. Consultant for public services c. Consultant for public services, governance and finance d. Consultant of institution building and finance e. Consultant for management support f. Financial administrator 44. The second part of the project wil be conducted by an implementing agency: consulting firm, university, or other institutions and several short term consultant recruited by government, Directorate General PUM, Ministry of Home Affairs. Accordingly, procurement will be done by government using Keppres 80/2003. This should be in line with the World Bank regulations for recipient executed projects. 45. The implementing agency consisting of a consultant team. The implementing agency should have: a. In-depth knowledge of public service delivery; and experience in the sectors of PDAM, Hospital management, and Population administration would be an advantage b. Ability to design and facilitate implementation of public sector models, especially in public service delivery c. Experience in facilitating and advising regional pilots d. Demonstrated management capability and financial management capability
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e. Commitment to maintain regular communication with Ministry of Home Affairs and work under MoHA coordination, especially the Director General of Public Affairs f. Demonstrated experience in working with independent local institutions as field facilitators g. Ability to perform project management, implementation, and monitoring and evaluation. 46. The consultant team should meet the following requirements: a. Team Leader- experienced in managing projects and foreign donor supported projects for development of public service policy, in depth knowledge of public service management, especially strategic management and institution building for service delivery; excellent communication, presentation and reporting skills. Minimum 15 years working experience. b. International experts/co Team Leader - experienced in managing projects and providing project support on the development of public service management and policies and institutional building for service delivery; excellent communication, presentation and reporting skills. Minimum 15 years of experience in leading position. c. Public Services and Strategic Management Expert (minimum 10 years experience) d. Public Policy and Governance Expert (minimum 10 years experience) e. Short Term Expert for Regulatory framework (minimum 10 years experience) f. Short Term Experts as needed according to the sectors selected by pilot regions (among others Management of Regional Hospitals, Population Administration, Provision of Water / Water, institutional experts). g. Regional Facilitator Team recruited from local institutions in two provinces. Specific requirement for all experts will be described in a separate TOR.
Procurement and Implementation Schedule 47. The following estimated schedule is proposed: June 2009: Finalization and MC approval of Activity Concept Note . July 2009-January 2010: defining mode of execution, TORs and budget preparation Jan-Feb 2010: Processing grant agreement for recipient executed Jan-March 2010: procurement processes. Advertisement and request for expressions of interest, evaluation, short list. Jan-June 2010: Baseline study of women’s access towards public service delivery, preparation of pilot regions April-May 2010 : Request for proposals; technical and financial proposal evaluation; and negotiation with the top ranked firm/agency. June 2010: Contract Issued and experts mobilization. July 2010: Delivery inception report. December 2010: Delivery of pilot implementation reports of phase I.
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May 2010: Delivery of pilot Implementation reports of phase II. August 2011: The delivery of final report. September 2011: Policy brief and closing projects.
Budget 48. The budget allocated for this project is US$ 500,000. The funds will be managed as follows: 49. US$ 428,908 (86%) will be managed by the institution / company that will be selected during the procurement using the World Bank system. The US$71,093 (14% of total fund) will be managed by DSF Executive for preliminary activities, monitoring and evaluation of the project and recruitment of consultants. See below for budget summary according to the World Bank eligible expenditures. Estimated Cost (USD) Recipient Executed (Grant in Cash) Consultant Services Firm 378,263
Individual Goods Training and Workshop
16,900
Description
Strengthening management and Institutional Building for Local Public Service Providers (SMIB-LPSP Project management and financial management
10,090
23,655 Operation Expenses Including travel for finance Sub Total 428,908 Bank Executed (Grant in Goods and Services) Consultants Individual
Goods Training and Workshop Operational Expenses Sub Total Total Budget USD 1 = IDR 10,000
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39,340
5,900 810 25, 043 71,093 500,000
Consultants for: Study of women access towards public services; preparation of pilot regions and others Computer, scanner, printings Workshop Travel, Meetings,