DSF Quarterly Report December 2009 by Decentralization Support Facility

DSF Quarterly Report December 2009

DSF QUARTERLY REPORT DECEMBER 2009

DSF Quarterly Report December 2009

Table of Contents Table of Contents ............................................................................................................................ 1 Introduction ..................................................................................................................................... 1 Governance and Development Context .......................................................................................... 1 Economic development ............................................................................................................... 1 Looking to the future .................................................................................................................. 2 Priorities of the new government. ............................................................................................... 2 Work Programming ........................................................................................................................ 3 Work Plan Implementation ............................................................................................................. 6 Costing of minimum service standards ....................................................................................... 6 Alternative mechanisms for service delivery (AMSD) .............................................................. 6 Functional assignments/Norms, standards, procedures and criteria (NSPK) ............................. 7 Information system for regional financial data (SIKD) .............................................................. 7 Border Areas ............................................................................................................................... 7 Sub-national Business Climate Reform ...................................................................................... 8 Delays in Programming and Implementation ................................................................................. 9 Funding of New Activities and the Future of the DSF? ............................................................... 10 DSF Engagement with Local Government ................................................................................... 11 Monitoring Framework ................................................................................................................. 11 Financial Report ............................................................................................................................ 11 DSF Governance ........................................................................................................................... 12 DSF Executive .............................................................................................................................. 12 Engagement with government. ................................................................................................. 12 Engagement with donors........................................................................................................... 12 Staffing â&#x20AC;&#x201C; professional staff appointments. .............................................................................. 13 SOfEI disengagement. .............................................................................................................. 13 Risks.............................................................................................................................................. 13 Annex A: Monitoring Frame ......................................................................................................... 15 Annex B: Financial Report ........................................................................................................... 29 Annex C: List of Acronyms ........................................................................................................... 36

DSF Quarterly Report December 2009

Decentralization Support Facility Quarterly Report (For the quarter ending 31 December 2009)

Introduction 1. In accordance with the DSF Operations Manual, this report is submitted within 30 days following the end of the fourth quarter of 2009. 2. Based on an up-dated version of the monitoring framework developed for the DSF Annual Report 2009, the report discusses the progress in the final quarter of 2009 of DSFfinanced activities approved in January and February 2007 and in 2009 and outlines progress made with the design, execution, and implementation of activities under the DSF Work Plan 2009-2011 (see sections in the body of the report, Tables 1 and 2, and Annex A). 3. It also examines reasons for delays in programming and implementation; up-dates (very briefly) certain aspects of the governance and development context and features of the management and functioning of the DSF Executive; and notes developments concerning local government engagement. 4. A financial report is set out in Annex B and a snapshot of available funds and formally approved commitments appears in Table 3. The report also considers the implications of DSF‟s financial position for new activities; for the role of the DSF Executive; and for the future of DSF beyond March 2012.

Governance and Development Context 5. During the fourth quarter of 2009, some of the more visible and significant events associated with governance have arisen from questions surrounding the so-called Corruption Eradication Commission (KPK) scandal. Allegations that government prosecutors and senior police had conspired to frame KPK investigators (of taking bribes) and tape recordings of conversations that seemed to support the allegations cast a pall over some of the most important institutions of governance in the country. The governance implications arising from allegations surrounding the government bailout of Bank Century are equally grave. 6. These events posed a serious test to the new government and, according to some analysts, threatened investor confidence. Nevertheless, the fact that open discussion of the issues involved took place in the media and a number of public demonstrations were allowed to proceed signifies enduring strength of other significant governance institutions. 7. Economic development.1 One year after the global economic and financial crisis, Indonesia‟s economy has recovered to near pre-crisis growth rates. Domestic and global risk remains significant however. Important indicators include:

Source: ‘Indonesia Economic Quarterly: Back on Track’. World Bank, Jakarta, December 2009.

DSF Quarterly Report December 2009

a. The economy continued to strengthen gradually in the fourth quarter of 2009, continuing the trends evident in September 2009. b. Growth is broad based, inflation remains moderate, and financial markets have risen. c. While the real economy remains stable, particularly relative to other countries in the region, financial markets have been somewhat volatile. The rupiah continued to appreciate through October, and then in December settled in a range of 9,400 to 9,500 – just a little weaker than before the onset of the crisis and stronger in real effective exchange rate terms. d. The new government is gearing up for substantial investments in physical infrastructure, human services and governance institutions. e. Growth in 2010 is likely to be around 5.6%, rising to 6.0% in 2011. f. The government‟s 2009 budget deficit is likely to be smaller than projected in the revised budget, or about 2.3% of GDP. g. The main risks in the global economic environment are likely to be associated with the withdrawal or exhaustion of various monetary and fiscal stimulus measures. On the domestic front, „recent domestic political developments have begun to raise questions about the timing and depth of future economic reforms‟. 8. Looking to the future: The achievements of the past decade augur well for the future - in relation to sustainable human development (education, health, and livelihoods), physical infrastructure, and economic development. If the solid foundations of political and macroeconomic stability that have been laid can be built upon, then in the coming decade Indonesia has the potential to become a socially just and cohesive society with a dynamic and competitive economy - in short, an inclusive middle income country. 9. The main challenges to achieving such ends lie in: accelerating the rate of poverty reduction and reducing the vulnerability of relatively large sections of the population to slipping-in to poverty; employment creation, particularly in higher value-added, nonagricultural jobs; improving water and sanitation, health and education service delivery, particularly at the local level; stemming environmental degradation and natural resource depletion; improving physical infrastructure; strengthening the investment climate; and, as a means to addressing all of these challenges, continuing to reinforce and protect the institutions of effective, efficient and clean governance. 10. The DSF strategic framework that is set out in the DSF Annual Report 2009 remains compatible with and complimentary to these developments and challenges. 11. Priorities of the new government. Short-term priorities specified by the new government address the issues identified above, including accelerating improvements in health and education service delivery, and DSF support is being provided to help ensure progress towards some of these ends. For example, among other things, the MoHA „100 day‟ programme specifies as priorities the Grand Design of Decentralization, local government capacity building, local investment and business climate improvement through one stop shops, resolution of spatial and development planning issues, and the development

DSF Quarterly Report December 2009

of border areas. In relation to the latter, a new National Agency for the Management of Border Areas has been established by presidential decree. 12.

The DSF is active in all of these areas.

Work Programming 13. In May 2009, a no-cost extension for the DSF to September 2011 was formally approved.2 Pending such approval (that is, up to late May 2009), in accordance with the wishes of the principal financial donor and so as not to raise expectations that might not be met, design and development of activities under the DSF Work Plan 2009-2011 had been put on hold. Commencing immediately upon the granting of the no-cost extension, in the seven months from May to December 2009, a total of 23 activities, each involving in one way or another one or more of 20 government directorates in three different government agencies, were designed, subjected to a thorough process of internal and external review, and formally approved by the DSF Management Committee (MC). Considering the large number and variety of interested parties involved, the complexity of the issues addressed, and the relatively short time within which the work was done, this was a noteworthy achievement. 14. The 23 activities were separated into two rounds of programming. The first round, involving 14 full-blown activities (described in 14 separate Activity Concept Notes – ACNs), was largely approved in the third quarter of 2009 (12 out of 14 activities). The second round, involving 9 activities that were designed and conceived as extensions or developments of those that constituted the first round, was approved by the MC (by circulation) during November/December 2009. 15. The majority of the latter, which are summarised in Table 1 below, are in the process of being developed as addenda to existing ACNs – two have already been completed. This should reduce the time needed for their detailed design and the establishment of execution and implementation arrangements. Table 1: Second Round of Programming under DSF Work Plan 2009-2011 Proposal

Link to ACN

Counterpart

ACN 1/2009 ACN 2/2009

MoHA (Diklat) Bappenas (Pengembangan Wilayah) MoHA (PDOK)

DPRD Orientation Regional Development Policy Local Government Evaluation Inter-Regional Cooperation

Regional Finance

Provincial Government Support Program (PGSP)

ACN 12/2009 ACN 13/2009 ACN 2/2009 ACN 4/2009 ACN 5/2009 ACN 14/2009

1 2 3

ACN on EPPD ACN 2/2009 ACN 4/2009

Notional Budget $500,000 $700,000 $300,000

Bappenas (Otda) MoHA (PUM) MoF (DJPK)

$1,000,000

Bappenas (KKDT), MOHA (UPD, PUM) Province of Gorontalo and Bangka Belitung

≤$2,000,000

$850,000

In December 2009, a further no-cost extension – to 31 March 2012 – was formally approved and the Contribution Agreement was amended accordingly.

DSF Quarterly Report December 2009

7 8

Notional Budget $600,000

Proposal

Link to ACN

Counterpart

Regional & Local Economic Development Sub national Business Climate Reform

ACN 10/2009

Bappenas ( Perkotdes)

DSF Work Plan 2007-2008 continuation ACN 13/2009

MoHA (Bangda & Diklat) Bappenas (Biro Hukam)

$1,000,000

MoHA (Otda)

$700,000

Grand Design on Implementation of Regional Autonomy

16. As indicated above, to 31 December 2009, fourteen full-blown activities had been through a thorough process of development, review, and approval. These activities are now in various stages of execution and implementation. A summary of progress is provided in Table 2 below. Table 2: First Round of Programming under DSF Work Plan 2009-2011 ACN #

Budget Estimate (USD) 500,000

Trust Fund Status

Capacity Strengthening Program for DPRD (Local Government Legislatures)

2/2009

Capacity Building for Regional Development Policy Formulation Socialization and Pilot Implementation of Joint Circular Letter (SEB) on Monitoring of Technical Implementation and Evaluation of Use of Special Allocation Funds (DAK) Management Strengthening and Institution Building for Local Public Service Providers (MSIB-LPSP)

142,500

Active

550,000

Active

REOI posted in Kompas in December; EOI submission deadline extended to Jan. 14, 2010.

500,000

GFR prepared

Institution Building for the Integration of NationalRegional Development and Spatial Planning

483,400

Active

Project mode of execution decided in November. Budget was adjusted. Grant agreement under assessment by WB. TORs for Bank executed activities are being prepared. One consultant under contract (Dec 1, 2009 - March 31, 2010). RFP from implementing agencies sent on Dec 31, 2009. Deadline for submission of proposals Feb 01, 2010

4/2009

5/2009

Grant Funding Request (GFR) submitted and approved - activation pending GA signing

Implementation Status

1/2009

3/2009

Name

Final draft of grant agreement reviewed by MoF & MoHA. Approvals from TACT (Trust Fund Accounting Clearance Team) obtained - World Bank Country Director waiting to sign grant agreement when DSF MOU extension has been officially processed (at request from MoF) and sent to GOI. Implementation underway (Sept 28, 2009 â&#x20AC;&#x201C; Mar 31, 2010)

DSF Quarterly Report December 2009

ACN #

Name

Budget Estimate (USD) 900,000

Trust Fund Status

6/2009

Building Capacity for the Development of SubNational Government Capital Markets for Municipal Bonds

7/2009

Government Training and Education Centre Development: Introducing Competency Based Standards for Improved Public Service Delivery

797,0003

GFR submitted and approved â&#x20AC;&#x201C; activation pending GA signing

8/2009

Institution Building for the Accelerated Development of Border Areas

500,000

Active

500,000

GFR prepared

1,593,520

GFR prepared

9/2009

10/2009

11/2009

Capacity Building through Decentralization Education and Training (DET) for Public Service Delivery Strengthening Local Government Natural Resource Management Capability Formulation of Norms, Standards, Procedures and Criteria (NSPK) for Local Government Service Delivery

749,500

1,000,000

GFR submitted

Implementation Status Preparation for international workshop on municipal bonds underway (likely mid-March 2010). TA to DKI Jakarta ongoing - on preparation of a municipal bond issue. Final draft of grant agreement reviewed by MoF & MoHA. Approvals from TACT (Trust Fund Accounting Clearance Team) obtained - World Bank Country Director waiting to sign grant agreement when DSF MOU extension has been officially processed (at request from MoF) and sent to GOI. Bappenas: One consultant under contract (Nov 1, 2009- Feb 15, 2010). RFP from implementing agencies sent out. Deadline for submission of proposals Jan 28, 2010. MoHA: Mode of execution decided in December. TOR and budget are being revised (MoHA). FM and procurement assessments are in process. Draft grant agreement is being reviewed.

Active

EOI evaluation report submitted for Bank approval.

GFR prepared

FM and procurement assessment done by WB. Draft grant agreement is being processed. Some Bankexecuted activities are being procured. ROEI sent to 8 agencies.

In order to finance fully the competency based training work planned under ACN 7/2009, the Foreign Cooperation Bureau of MoHA (AKLN) has approved from funds earmarked for governance reform in the DSF Work Plan 2009-2011 an additional allocation for Diklat, up to a ceiling of $800,000. AKLN sent this recommendation to the MC co-chair for documentation purposes. The DSF Executive has reviewed the revised budget, currently at $797,000, and found that it meets the requirements for eligible expenditures.

DSF Quarterly Report December 2009

ACN #

Name

12/2009

Strengthening Data Provision to the Regional Financial Information System by Sub-National Governments with StandAlone Electronic Data Bases

13/2009

Grand Design of Fiscal Decentralization

14/2009

Costing and Pilot Implementation of Minimum Service Standards

Budget Estimate (USD) 250,000

900,000

1,200,000

Trust Fund Status Active

GFR prepared Pending decision on mode of execution

Implementation Status Dec. 2009: Scoping mission to North Sulawesi. Trial run on converting local data into MoF‟s SIKD system using data from 3 local governments in North Sulawesi underway; STC hired. Preparation underway for launch meeting (likely Jan. 2426, 2010). ACN approved. GOI to decide mode of execution.

17. As can be seen in Table 2, during the reporting period, progress in relation to the finalisation of execution arrangements and implementation for the majority of the fourteen activities has been reasonable in the circumstances, and these activities have either begun implementation or at advanced stages of finalising the conditions for execution. This comment applies to nine of the fourteen activities, some of which are at early stages of implementation. A further two activities (1 & 7), which are to be recipient executed, have grant agreements ready for signing and are awaiting the formal approval of the extension of the DSF MOU (likely in January 2010). 18. Work plan implementation is discussed below. Reasons for the delay of certain activities are discussed immediately thereafter.

Work Plan Implementation 19. The following are some examples of the results achieved during the past quarter from the implementation of activities approved in 2007, and in 2009 under the DSF Work Plan 2009-2011. 20. Costing of minimum service standards (approved in 2007). Based on DSF technical assistance to the Ministry of Health and Ministry of Home Affairs, a manual for the costing of minimum service standards (MSS) was formalized by Minister of Health Decree No. 317/2009 and 1000 copies were printed for distribution. DSF also supported „consultation‟ workshops for the draft manual (with local governments) and conducted simulations using real data from several regions. Wide distribution of the manual will be helpful to MSS planning and implementation by sub national governments. An electronic system for costing MSS is in the process of being developed with technical assistance from the DSF. This will help regions to work more efficiently and manage the database of MSS indicators. Such data are essential to health MSS monitoring and evaluation. 21. Alternative mechanisms for service delivery (AMSD) (approved in 2007). Activities under this project were completed in December 2009. Results include the dissemination of eight basic strategies for AMSD; and pilot project planning in Banten

DSF Quarterly Report December 2009

province - for the better provision of local hospital services, clean/drinking water, and for population administration. 22. Some elements of the eight strategies of AMSD were not new, but the processes surrounding their dissemination have been helpful to public service providers in the above mentioned sectors, which now have a better idea about how to strengthen internal management processes and recover costs for services. The introduction of performance agreements between local government head offices and service delivery units is also helping local governments to provide better public services. 23. Functional assignments/Norms, standards, procedures and criteria (NSPK) (approved in 2007). In the last quarter, DSF supported a preliminary assessment of NSPK status in health, trade, energy and mining, agriculture, and land affairs. The analysis highlighted some weaknesses, including unclear divisions of functions, unclear accountability, and licensing procedures that overlap between central government, provinces and districts and municipalities. For example, in land affairs no regulations have been developed on problems surrounding repayment of land used for public infrastructure development. In the energy and mining sector, standards and criteria for the involvement of provinces and districts and municipalities in defining limits for mining production have not been established. 24. Information system for regional financial data (SIKD) (approved in 2009). In the last quarter, a team drawn from the DSF and the Directorate for Evaluation and Information on Regional Financial Management (EIPKD) from the Ministry of Finance (MoF) conducted a scoping mission in the province of North Sulawesi. The objective was to review the system for managing data and reporting regional financial information, and to find ways to synchronize the regional financial databases with the SIKD at EIPKD-MoF. Before the mission the team conducted an assessment of the database system used by EIKPD-MoF. 25. The team found that almost all of the districts and municipalities in North Sulawesi used the Information System for Management of Regional Finance (SIMDA). Given the widespread use of SIMDA, SIKD-MoF confirmed the feasbility of developing an application to extract data at the regional level in a format acceptable to MoF that would enable MoF to access regional financial data electronically. 26. Currently, North Sulawesi is well advanced with entering regional data into their database. North Sulawesi will be a pilot province for testing the applicationâ&#x20AC;&#x;s ability to extract this data and transfer it electronically to the SIKD-MOF database. DSF is providing the technical assistance for this pilot and results will be available in the next quarter. If the pilot is successful, it will be tested in several other provinces that have compatible data collection and reporting systems. 27. Border Areas (approved in 2009). The development of border areas is a key national government policy area, as expressed in the latest Medium-term Development Plan 2010-2014 (RPJM). This activity brings together Bappenas and MoHA in a collaborative effort to provide more comprehensive national government assistance for the development of border areas, both in terms of economic development and improved service delivery. Technical assistance was provided to Bappenas in the past quarter primarily as input to the border areas section of the RPJM.

DSF Quarterly Report December 2009

28. While several national government ministries have run programs in border areas (notably Bappenas, MoHA and the Ministry of Disadvantaged Regions), there was a lack of consistency between the identified border areas of each program. 29. During the last quarter, DSF support has identified border areas in a way that helps synchronize support across national government ministries and programs. Such border areas have been narrowed down to 12 provinces and 38 districts and municipalities. These have been accepted by PUM and the Ministry of Disadvantaged Regions. 30. DSF has also assisted with the drafting of development indicators for border areas, intended for tracking progress throughout the duration of the RPJM. These indicators were consolidated into a border area matrix. This matrix was included in the final draft of the RPJM and incorporated input from MoHA (Bangda and PUM) and the Ministry of Disadvantaged Regions. The matrix covers two focus areas: (i) Accelerating economic growth in border areas; and (ii) Strengthening institutional capacity to develop border areas in an integrated manner. 31. DSF technical assistance has also been used to inform the Policy Direction and Development Strategy of Chapter 9 of the RPJM on border areas. 32. Overall, DSF has contributed substantially to the RPJM 2010-2014 through: determining the border regions to be assisted and obtaining acceptance from other relevant ministries; providing key input to the monitoring matrix to be used for the section of the RPJM on the development of border regions; and providing input to the section on the development of strategic areas for Chapter 9, Regions and Spatial Aspects. 33. Going forward, DSF will support the production of a Bappenas policy paper on institutional arrangements for border area development, which encompasses BNPP (National Agency for the Management of Borders) and BPPD (Regional Agency for the Management of Border Areas). Outputs are expected in the next quarter. 34. Sub-national Business Climate Reform (approved in 2007). The aim of the activity has been for local governments to adopt more effective, efficient and accountable processes for business licensing and to modify regulations accordingly. This was done by helping government to make better use of regulatory impact assessments and through support to the establishment of effective one stop shops for business licensing. 35. The main activities in the project were completed in the last quarter and the cumulative outputs are as follows: (i) revised national OSS guidelines issued through circular letter No. 500/1191/V/BANGDA; (ii) national OSS curriculum printed and issued; (iii) national OSS monitoring and evaluation framework issued as BANGDA circular letter; and (iv) revised manual for RIA implementation disseminated. 36. At the provincial level, Bali and North Sulawesi have established provincial OSS support units that are tasked with monitoring and building the capacity of district-level OSS. Both provinces are using self-developed provincial OSS performance indices to collect data to show the condition of their district-level OSS. The two provincial governments established district-level OSS forums to share knowledge and build capacity. In the next quarter the follow-up activity will begin to consolidate, scale-up, and sustain these reforms. Investment climate is a top priority in the RPJM 2010-2014 and the DSF

DSF Quarterly Report December 2009

will work with multiple government agencies to ensure the agenda is advanced in a systemic and sustainable manner.

Delays in Programming and Implementation 37. In a small number of cases, there has been little or no progress since activities were approved by the MC in 2009, or progress has been very slow. This applies to activities 9, 14, 11 and part of activity 8 in Table 2 above. 38. In particular, the pace of progress has been slower than desirable in cases where there has been disagreement between directorates within a particular ministry concerning preferred modes of execution. In one agency in particular (Ministry of Home Affairs), there has been some contention over a policy that stipulates that all DSF-financed activities should be government executed. Considerable prevarication in decision-making has ensued as a result of this, causing two activities in particular (9 & 14 in Table 2) to become more or less completely bogged down and two others to be seriously delayed (11 & part of 8 in Table 2). In other agencies it has been possible to adopt a more pragmatic and expeditious approach, allowing mode of execution to be determined by whatever appears to make most sense for the activity and the parties involved. 39. A number of other factors have contributed to delays. First, all of the government members of the DSF have been - and will continue to be for some months to come - busy responding to the short-term requirements of the new government. In some instances, DSFsupported activity has been directly and immediately helpful to this and therefore has been accorded high priority, but other cases (involving longer-term yields) for understandable reasons have been given lower priority. 40. Second, collaboration between directorates within a ministry or between directorates in different ministries has slowed progress. Such collaboration is sometimes desirable or necessary, but it can come at a cost. As the number of parties involved increases, so reaching agreement is likely to be more difficult and to take longer. 41. Third, government execution is clearly desirable, but preparations for it take longer than for other forms of execution. Implementation may also be slower under recipient execution. 42. Fourth, on some occasions internal processes within the Bank – which have an indirect effect on speed of programming, execution and implementation (e.g., recruitment and selection of professional staff) – could have worked more efficiently. 43. Fifth, government has not been fully aware of the ramifications for program funding of delay in activity execution and implementation – which ramifications very recently have become more pointed. In mid-December 2009, the DSF Executive received advice from the principal financial donor concerning the likelihood that under certain conditions – primarily associated with the rate of disbursement - pledged funds could be withheld. 44. The probability of funding postponement or withholding raises the question of whether any activities over and above those that have been approved to date can be countenanced. Table 3 below shows that available funds exceed current approved allocations and commitments by a small margin, suggesting that for the time being no new activities should be considered. Annex B provides a full financial report.

DSF Quarterly Report December 2009

Funding of New Activities and the Future of the DSF? 45. The above notwithstanding, there is steady demand from government for the funding by DSF of new activities, that is, for activities over and above those already approved by the DSF governance structure. The excess of demand from government for funding of new DSF activities over the supply of funds highlights two further questions of strategic management. 46. First, it suggests that an important emerging – „business development‟ - role for the DSF Executive might consist in assisting government with the development of project outlines or concept notes that could be used as a basis for generating new financial contributions to the DSF, either from existing DSF members or other (non-member) donors. As with the development of project outlines, the marketing of such possibilities could be a joint endeavour, led by government with assistance from the DSF Executive as required. 47. Second, a closely related question concerns the future of the DSF itself and whether government would wish to maintain this mode of aid management beyond the current closing date of 31 March 2012. A positive answer to the first question to some extent preempts the second question. 48. Arguments in favour of maintaining a government-led multi-donor facility include: first, and most importantly, the DSF is genuinely „government led‟, that is, government decides the uses to which DSF funds are put. The role of the DSF Executive and, to some extent, the DSF governance structure has been to help government refine and develop its ideas; to help government consider the most appropriate means for executing and implementing them; and to expedite the processes surrounding execution and implementation over which it has some measure of control. 49. Though not-straightforward and therefore time consuming, a significant proportion of DSF-funded activity will be executed by government. That is, grants to government will be made that give it complete control over financial management and procurement and rely on its own fiduciary safeguards. The DSF Executive will provide help with this where it is needed and requested and monitor and report on activities during implementation. This is entirely consistent with the stature of an emerging middle income country whose presence is increasingly recognised on the global stage. 50. Second, there are significant and widely known economies of scale and other efficiencies associated with such facilities. These arise primarily from the fact that all aspects of the project cycle are managed through a single governance structure. 51. None of the benefits inherent in the first two arguments outlined above is easily realisable – or, perhaps, realisable at all - from stand-alone bilateral projects of assistance. 52. Third, all of the international declarations and commitments on aid effectiveness (Rome, Paris, Accra, and Jakarta etc.) signed by development partners over the last ten years or so recognise the benefits of multi-donor arrangements and advocate strongly that they be employed, particularly in governance and development circumstances such as those that – increasingly – prevail in Indonesia.

DSF Quarterly Report December 2009

DSF Engagement with Local Government 53. In late October 2009, a paper outlining a number of possibilities for DSF engagement with local government was put to the MC for its consideration. The MC agreed that the idea of a „local government consultative group reporting to the DSF MC be endorsed and recommended to the DSF Steering Committee for its consideration.‟ The relevant minute of the meeting also states that: „subject to Steering Committee approval of the recommendation, a MC task force be established comprising members drawn from the government technical team and the DSF Executive, whose job it would be to make detailed recommendations concerning terms of reference for the consultative group; membership; and forms of logistical and other support to be provided.‟

Monitoring Framework 54. Annex A provides a summary of progress made to date according to the agreed monitoring framework. Activities are organised according to: (1) Public service delivery; (2) Fiscal decentralisation; (3) Accountability; (4) Planning and performance measurement; and (5) Development effectiveness in Eastern Indonesia. 55.

All funding for the latter ceased according to plan on 31 December 2009.

Financial Report 56. A detailed financial report is provided separately as Annex B and a summary of the Facility‟s cash position and of projected cash flow to 2011 is set out in Table 4 of Annex B. 57. Table 3 below provides a snapshot of available funds and formally approved allocations4 and commitments5 that takes into account a probable reduction in available funds of 2 million pounds sterling in the current financial year (see paragraph 43 above). The difference between total allocations and commitments and total available funds leaves the DSF with a small positive balance, in the amount of $121,707. Table 3: Snapshot of Financial Status (USD) Total pledges Other receipts Investment income Disbursements Consolidated fund balance Less GBP 2 million Available funds

Budget (USD) 45,079,372 24,754 1,355,913 15,933,044 30,526,995 3,260,000 27,266,995

The word „allocations‟ is used to denote financial amounts (budgets) formally approved by the DSF governance structure for a DSF activity or operation. It does not entail any legal obligation. 5 A „commitment‟ signifies that a legally-binding obligation exists to pay the amounts for the purposes described.

DSF Quarterly Report December 2009

Budget (USD) Total allocations & commitments Balance of allocations approved January 2007 First round project allocations - approved 2009 Second round project allocations - approved 2009 DSF Executive (to March 2012)

5,238,142 10,890,520 7,650,000 3,366,626

Total allocations & commitments

27,145,288

Total available funds less total allocations & commitments Total cash held (funds received – disbursements & commitments)

121,707 13,807,007

DSF Governance 58. Under the always effective and efficient co-chairmanship of the Ministry of Finance and the World Bank, the Management Committee has responded expeditiously and constructively to all matters placed before it, whether by circulation outside of formal meetings or in formal session. 59. During the month of December, formal letters of support for the extension of the DSF memorandum of understanding to December 2011 were signed by the Ministry of Finance, Bappenas, and the Ministry of Home Affairs. On the basis of these letters of support from government, and a formal request for concurrence with the extension proposal sent to the World Bank, donor members of the DSF (ADB, AusAID, CIDA, DFID, Government of Germany, Government of the Netherlands, and USAID) were asked to express their support for the extension, which all have done.

DSF Executive 60. Engagement with government. Such engagement continues to strengthen and, as in the past, to rest on: a. Meetings - called by government – with government members of the DSF MC. b. Breakfast meetings with the Chair of the MC and senior representatives from the other government agencies represented on the MC. c. Day-to-day interactions with government counterparts responsible for particular activities. d. Day-to-day interactions with the government technical team assigned to support government‟s management of DSF-related work. e. Workshops with the government (DSF) technical team. 61. Engagement with donors. A summary of proposed support to decentralisation outside of the DSF, which has been informed by the DSF strategic framework, was presented to the 28 October 2009 meeting of the DSF MC by bi-lateral donors, and was well received. The relevant minute of the meeting states: „The presentation was noted as a positive development and therefore welcomed by members. It was agreed that consideration should be given to ways of institutionalizing the interaction with the DSF MC

DSF Quarterly Report December 2009

and that the GOI technical team and the DSF Executive should produce for consideration by the MC a short note containing recommendations concerning this.â&#x20AC;&#x; 62. A meeting of the donor working group on decentralisation (DWG) was held on 12 December 2009. Responsibility for chairing these meetings has been transferred from CIDA to AusAID and a small sub-group has been established to consider terms of reference for the DWG. 63.

Staffing â&#x20AC;&#x201C; professional staff appointments. a. Senior Economist. Selection interviewing was completed during the reporting period and internal approvals obtained for making an offer to the preferred candidate. The appointee is a current Bank employee and arrangements for internal transfer are in train. b. Senior Governance Adviser (international). Selection interviewing was completed in December and internal approvals obtained for making an offer to the preferred candidate. A fee offer will be made early in January 2010 and acceptance of this will trigger security clearance by the Bank. c. Decentralisation Adviser (national). Selection interviewing was completed in December and internal approvals obtained for making an offer to the preferred candidate. A fee offer will be made early in January 2010 and acceptance of this will trigger security clearance by the Bank. It will be possible for this appointee and the international adviser referred to immediately above to commence work while the process of security clearance is undertaken, probably in late February 2010.

64. SOfEI disengagement. The sustainable disengagement of SOfEI from the DSF proceeded according to plan with DSF financial support to SOfEI ending on 31 December 2009. The last bi-monthly report was circulated to MC members on schedule in the first week of November 2009. 65. SOfEI has been transformed into Yayasan BaKTI, which is now formally established and operational. Its official launch will take place in late January 2010.

Risks 66.

The main risks remain as set out in the DSF Annual Report 2009.

67. The probability of funding postponements or reductions - discussed briefly in paragraphs 43 and 57 above â&#x20AC;&#x201C; also constitutes a risk. Risk management on the part of the DSF Executive will concentrate on promoting the striking of a reasonable balance between government need and priority, quality of design and implementation, and speed of disbursement; and will rely on the maintenance of open and continuous dialogue with government and the principal financial donor on the basis of the best available information.

DSF Quarterly Report December 2009

Annex A: Monitoring Frame Project Name

Decentralization Support Facility (DSF) Phase 2

Goals

Indicators

Improved socio-economic development and reduced poverty

Indonesia's Human Development Index (HDI)

Purpose Equitable, accountable and high quality public services provided by national and local governments

* First milestone/ target

Progress

Rate

Comment

Indicators

Progress

Rate

Comment

Local government expenditure and local government performance in basic public service delivery

Contributions to the development and dissemination of legislation and procedures governing functional assignments; minimum service standards including costing; institution and capacity building of service providers; and identification and diffusion of good practices.

1 – Fully achieved 2 – Largely achieved 3 – Partially achieved 4 – Achieved to a very limited extent 5 – Not achieved at all X – Too early to judge

DSF Quarterly Report December 2009

Output 1: Public Service Delivery Objectives

Indicators

Progress

Rate

1.1. Guidelines (norms, standards, procedures and criteria-NSPK) for service delivery in selected sectors formulated

Number of new guidelines (norms, standards, procedures and criteria) for service delivery completed/issued

Consultations held with regions in July 2009 for formulation of 26 norms, standards, procedures and criteria (NSPK) in health. This resulted in confirmation that up to 10 out of 26 NSPKs can now be further processed to be formalized by the Minister of Health. Assessment of 26 NSPK in health and preliminary assessment of NSPK in agriculture, trade, mining and land administration sector completed further clarifying the role and authority of each level of government (refer to Government Regulation 38/2007) and providing technical guidance for implementing service functions. The report is being processed for submission to GOI. ACN 11/2009 on Formulation of Norms, Standards, Procedure and Criteria (NSPK) was approved in October 2009. Mode of execution is GOI executed (90.5 %) and WB executed (9.5%). Budget and ToR have been prepared. Financial management and procurement assessment was completed. Grant agreement is being prepared. For World Bank executed component requests for expression of interest for study on mapping of NSPK status has been sent to 8 agencies. Study expected to be completed by June 2010.

1.2. Minimum Service Standards (MSS), in targeted sectors budgeted and implemented in selected district governments

Implementation of MSS in selected sectors in selected districts and municipalities

The Manual for MSS Costing (Minister of Health Decree 317/2009) has been printed and is ready for distribution by Ministry of Health/MoHA to all districts and municipalities. An electronic system for costing health MSS is being developed. ACN 14/2009 on Capacity Development for Minimum Service Standards Costing and Implementation was approved in November 2009. Mode of execution not yet decided.

1.3. Alternative service delivery schemes established in selected sectors and districts and municipalities with better access for women

Number of selected district governments developed pilot alternative schemes in service delivery and number of women reached by these pilot schemes

Assessment of Legal and Regulatory Framework report completed October 2009. National Workshop on Alternative Mechanisms for Service Delivery (AMSD) was held in November 2009. Representatives from three regions in Province Banten presented preparations for the pilot implementation of: Management Strengthening and Institution Building for Local Public Service Providers. Alternative Mechanism for Service Delivery (AMSD) activity was successfully completed in December 2009. Final report submitted.

Comment

Rating refers to AMSD (phase 1). Future reports will be rated according to achievement of milestones/target of phase 2: Management strengthening and institution building for local public service providers.

DSF Quarterly Report December 2009

Output 1: Public Service Delivery Objectives

Indicators

Progress

Rate

Comment

ACN 4/2009 on: Management Strengthening and Institutional Building for Public Service Delivery was approved. This builds on phase 1 (AMSD). Mode of execution is GOI executed (86%) and World Bank executed (14%). Detailed budget and ToR for GoI executed component has been completed. For WB executed component, several TORs for study and recruitment of consultants are being prepared, including for a baseline study on womenâ&#x20AC;&#x;s access to public services. 1.4. Improved public service delivery by selected local governments in border areas

Action plans for improved public service delivery completed by selected local governments in border areas

ACN 8/2009 on Institution Building for the Accelerated Development of Border Areas, approved. This ACN combines both Bappenas (WB executed) and MoHA activities (GOI and WB executed). The budget and ToR for MoHA (GOI executed) activities are being finalized. This links to activity 4.3. on economic development planning in border regions in order to provide integrated support to these regions by linking Bappenas, MoHA and the Ministry of Disadvantaged Regions.

Through this activity both MoHA and Bappenas seek to strengthen crossministerial institutions, such as the National Agency for the Management of Border Regions, which manage and develop border regions as well as to improve policy for development of border regions. Initial work for Bappenas is being implemented by a consultant. A qualified implementing agency is being identified to implement the larger part of the work that is planned to commence in January 2010. An additional implementing agency will be contracted to undertake services to meet MoHA requirements.

1.5. Improved local government systems for dissemination and replication of good practices in service delivery

National policy on good practices issued

Comparative analysis of ongoing good practice programs in Indonesia completed in April 2009. MoHA has held several rounds of consultations on a draft permendagri (ministerial regulation) on Best Practices. The project implementation consultants presented a mid-term report to MoHA in August 2009. In spite of DSF efforts to rectify the situation it was noted that progress was disappointing. The consultants had not submitted an Inception Report in Bahasa Indonesia, nor completed the pilots and database work as stipulated in the ToR. A one month no-cost extension was allowed beyond the project closing date of 30 September 2009, to enable the consultants to meet with GOI and rectify the lapses. As they failed to comply, the project was closed with effect from 31 October 2009.

Project implementation was handicapped by key members of the selected consultancy team not being available as proposed and poor compliance to ToRs. MoHA (Directorate for Capacity Building and Local Government Performance Evaluation) expressed dissatisfaction with activity performance. As a consequence, the project was closed on 31 October 2009.

DSF Quarterly Report December 2009

Output 1: Public Service Delivery Objectives

Indicators

Progress

Rate

Comment

1.6. Local governments adopt effective, efficient and accountable regulations and processes for business licensing

Local government performance in implementing OSS for business licensing

The project has successfully delivered all outputs expected in the current year‟s work-plan, with regard to both One Stop Shops (OSS) for business licensing and use of Regulatory Impact Assessments (RIA). At the national level, key achievements include: (1) Revised National OSS Guidelines, issued through circular letter No 500/1101/V/BANGDA on 8 June 2009 (2) National OSS Curriculum, printed and issued in October 2009, and (3) National OSS M & E framework, issued as BANGDA circular letter on October 30 2009, and (4) RIA Manual updated, published and issued by Bappenas in August 2009. At the sub-national level, the project‟s strategy of involving provincial governments in promoting district level regulatory reforms is shown to be the right direction in scaling up and monitoring OSS performance, and in promoting the use of RIA. To ensure the momentum of this work, a follow-on project has been approved by the DSF Management Committee (ACN 15/2009). These achievements to date put the project in a strong position to achieve extension phase activities: milestone 1 (10% increase in OSS operating under revised guidelines) by 2011, and to reach milestone 2 (25% scale up) by 2011, and the target (25% reduction in time required for acquiring business licences) by September 2011.

1**

A presentation of project achievements to all key stakeholders, including the DSF Management Committee is scheduled for January, 2010. This meeting will reflect on lessons learnt and discuss national strategies to scale up the pace and performance of sub national business licensing reforms in order to improve the overall business and investment climate in the regions.

Six analyses completed for Bappenas, MoF, MoHA, DPD, DPR, and local government, with information on lessons learned from international, national, and local experience of territorial reform:  Experiences in Territorial Reform: Implications for Indonesia  Territorial Restructuring: Country Case Studies  Process and Implications of the Social-Political Dimensions of Territorial Reform: Case Studies from Sambas and Buton.  Costs and Benefits of Proliferation of Regions (Pemekaran) analysis completed for MoF with key findings for fiscal transfer formulas related to pemekaran, November 2007  Evaluation of the Proliferation of Administrative Regions in Indonesia 2001-2007  Territorial Reform and People‟s Welfare: Finding Alternatives Consultations and dissemination workshops with national and local

1.7. Improved understanding of international best practices, social political dimensions, costs and benefits and alternatives for territorial reform

Evidenced based research on territorial reform adopted by three key ministries: MoF, Bappenas and MoHA for policy input

**The rating “1” refers to the work completed in 2009. Subsequent updates will refer to the project extension which has been approved.

A Fiscal Agency Agreement (FAA) with UNDP for coverage of work under territorial reform, disaster management, and sub national data was operational until June 30, 2009. UNDP submitted the final report covering the entire body of work under the FAA in December 2009. The trust fund for the FAA has been closed.

DSF Quarterly Report December 2009

Output 1: Public Service Delivery Objectives

Indicators

Progress

Rate

Comment

Progress DSF is supporting data entry of MoF‟s Regional Financial Information System (SIKD) for Fiscal Year 2007 Support duration: May-August 2009. Data entered and verified to date: Budget data (APBD, 2009): 481 districts and municipalities (94 percent of total) Realization data (LRA, 2007): 351 districts and municipalities (75 percent of total). Two user manuals were prepared: data entry procedure intended for data entry operators; and a guide for users to access the data. ACN 12/2009 on Strengthening Data Provision to the Regional Financial Information System by Sub-National Governments with Stand-Alone Electronic Data Bases, approved by DSF MC in October 2009. Scoping mission to 3 local governments in North Sulawesi to review regional financial information systems carried out in December 2009. Pilot activity to convert electronic data from the above districts and municipalities to SIKD database at MoF is expected to be completed by end of March 2010.

Rate 1

Comment Rating refers to Phase 1 Future reports will be rated according to achievement of milestones/target phase 2.

Feasibility assessments of possible incentives for the grants system including revenue-sharing intercepts as sanctions for poor performance completed September 2008. ACN 13/2009 ACN on Improving the Policy Framework for Fiscal Decentralisation („Grand Design of Fiscal Decentralization‟ - GDFD) approved by DSF MC in November 2009.

multi-stakeholder forums were held during preparation, finalization, and outreach for the analyses. Parts of the reports have been used in presentations and seminars by senior GOI central and local government officials. The research also informed policies related to fiscal, administrative, and social-political aspects of territorial reform.

Output 2: Fiscal Decentralization and Capacity Development Objectives 2.1. The Ministry of Finance Regional Financial Information System recording local government budgets is upgraded

2.2. Improved fiscal decentralization policy

Indicators Number and process of data entry of local government budgets recorded in the Ministry of Finance Regional Financial Information System

Implementation of „Grand Design of Fiscal Decentralisation‟ across government ministries and local governments

Data entry will be continued under ACN12/2009.

Data from local governments will be utilized as input to data conversion exercise. Results from this exercise will form basis for upcoming strategy of electronic data transfer from local governments to central government.

In addition to clarifying and specifying in more detail the policy framework for fiscal decentralisation, the support will also provide analytical inputs for the revision of Law 33/2004 on fiscal balance between central government and local governments. Meeting is planned for January 2010 to discuss details of project

DSF Quarterly Report December 2009

Output 2: Fiscal Decentralization and Capacity Development Objectives

Indicators

Progress

Rate

Comment implementation, oversight plan, and strategy to expedite project implementation.

2.3. National policy on local government borrowing, including issuance of municipal bonds, adopted

2.4. Improved public financial management by local governments

Municipal bond issuance, including credit worthiness assessments

Public financial analysis completed by selected local governments as basis for local government planning and budgeting

Review of Indonesian Civil Code on issues relating to debtor, creditor, and bankruptcy/insolvency completed May 2009. Review of Regulatory Framework and Best Practices Study on Local Government Financial Emergency Procedures completed in December 2009. Support for revision of Government Regulations GR 54/2005: Local Government Borrowing and GR 57/2005: Local Government Granting is complete. Draft revisions have been signed by the Ministry of Finance and are currently being discussed with the Ministry of Law and Human Rights. Analysis and preparatory work for issuance of Jakarta and Bandung bonds:  Technical assistance to the governments of Provinces DKI Jakarta and Kota Bandung is underway  Team for preparation of DKI Jakarta municipal bonds (Tim Persiapan Obligasi Daerah - TPOD) established in July 2009. The team is discussing selection of project(s) to be financed by the bonds.  Preparation of draft Perda (local regulation) for submission to DPRD (local parliament) is underway. ACN 6/2009 on Building Capacity for the Development of SubNational Government Capital Markets for Municipal Bonds was approved. Preparation of international workshop on municipal bonds is underway.

Empirical analysis of regional government surpluses based on data from 27 provinces and 220 districts and municipalities resulting in report with recommendations completed June 2008.

Empirical analysis on regional government investment in public infrastructure based on audited financial data for 2004-2007 completed June 2009.

Rating refers to Phase 1 activities. Future reports will be rated according to achievement of milestones/target phase 2. Directorate of Regional Financing and Capacity-MoF has submitted request to expand the scope of activities to the Province of Kepulauan Riau and Kota Surabaya. Consultations among members of DSF MC are underway to accommodate the request. Future support for the expansion is foreseen, and will be funded as part of ACN 6/2009 implementation. This will continue current support until February 2010. Scoping missions to Kota Surabaya and Province of Kepulauan Riau are scheduled for February 2010. The purpose of the missions is to review local government readiness for preparation of municipal bond issuance. Rating pertains to Phase 1. Phase 2 is currently on hold pending further discussions with GOI.

DSF Quarterly Report December 2009

Output 2: Fiscal Decentralization and Capacity Development Objectives

Indicators

Progress

Rate

Comment

2.5. Government pro-poor special allocation fund (DAK) monitored and evaluated

Monitoring and evaluation reports completed on expenditures of pro-poor government fund in selected local governments

ACN 3/2009 on Socialization and Pilot Implementation of Joint Circular Letter (SEB) on Monitoring of Technical Implementation and Evaluation of Use of Special Allocation Funds (DAK) approved by DSF MC in July 09. ToR for implementing firm has been prepared. Request for expressions of interest (REOI) to select implementing firm advertised in December. Procurement is underway.

Meeting planned for January 2010 to discuss details of project implementation, oversight plan, and strategy to expedite project implementation. Modifications to ToR are envisioned following the meeting.

Output 3: Increasing Accountability Objectives

Indicators

Progress

Rate

Comment

3.1. Effective legislative processes, resource allocation and oversight functions demonstrated in selected local legislatures

Number of provincial and district MPs, including women MPs, trained in legislative processes, budgeting and oversight

ACN 1/2009 on Capacity Strengthening for DPRD (Local Government Legislatures) approved. Budget negotiations completed with MoHA. World Bank procurement and financial management assessments of UPD-MoHA completed. Grant Agreement and Disbursement Letter approved by Procurement, Financial Management, Disbursement, Legal, and Loan Department of World Bank. Legal documents are ready for Country Director signature and Ministry of Finance countersignature on behalf of the Republic of Indonesia. Grant Agreement and Disbursement Letter, signature pending extension of DSF MOU.

Ministry of Home Affairs has worked hard to prepare documents needed to meet effectiveness conditions of the Grant Agreement including a draft project operation manual. MoHA has also worked across sub-sections to prepare information and form management teams needed to finalize the legal documents. These are crucial aspects toward ensuring effective implementation of Recipient Executed grants.

3.2. Effective and accountable public service delivery by local government officials and effective monitoring by CSO leaders demonstrated in selected local governments

Number of national and local government officials and CSO leaders professionally trained in effective and accountable public service delivery

ACN No. 9/2009 on Capacity Building through Decentralized Education and Training (DET) approved for a total budget of USD 1.593,520 The activity covers 3 components which aim to enhance the professional capacity of local and national officials to provide and CSOs to monitor improved public service delivery: (i) Short courses in country and the region (ii) Study tours (iii) Scholarships for Masters programs in decentralization related studies in the UK. The grant agreement for the scholarships program is being reviewed, and financial management and procurement assessments are in process.

ACN 9/2009 has been divided into 2 grants: 1) scholarships and 2) short courses and study tours

DSF Quarterly Report December 2009

Output 3: Increasing Accountability Objectives

Indicators

Progress

Rate

Comment

3.3. Local training and education centres demonstrated improvement in conducting training programmes for local government officials

Competency-based training programmes on decentralized public service delivery developed by local government training centres

ACN 7/2009 on Government Training and Education Center Development: Introducing Competency Based Standards for Improved Public Service Delivery approved. Budget negotiations completed with MoHA. World Bank procurement and financial management assessments of Diklat completed. Grant Agreement and Disbursement Letter approved by Procurement, Financial Management, Disbursement, Legal, and Loan Department of World Bank. Legal documents are ready for Country Director signature and MoF countersignature on behalf of the Republic of Indonesia. Grant Agreement and Disbursement Letter signature pending extension of DSF MOU.

Ministry of Home Affairs has worked hard to prepare documents needed to meet effectiveness conditions of the Grant Agreement including a draft project operation manual. MoHA has also worked across sub-sections to prepare information and form management teams needed to finalize legal documents. These are crucial aspects toward ensuring effective implementation of Recipient Executed grants.

3.4. Improved public accountability of local governments delivered by CSOs

Public accountability mechanisms developed and implemented by CSOs

The options paper requested by the DSF Management Committee on local government engagement was completed and discussed at the October 2009 DSF Management Committee meeting. The paper described three options: 1) LG by invitation to DSF MC meetings, 2) LG consultative group reporting to DSF MC, and 3) permanent representation on DSF MC. It also included an annex with geographical distribution of DSF local government activities. The MC recommended Option 2) Local Government Consultative Group reporting to DSF MC. This recommendation will be forwarded to the DSF Steering Committee for approval. Pending approval, a small task force will be formed to decide on the arrangements for implementing the recommendation.

Activity pending

3.5. Improved knowledge sharing on support to local governments

Publicly accessible data base on support to local government developed and number of development forums and harmonization activities facilitated

A donor mapping database created and made available online in English and Bahasa Indonesia at http://www.dsfindonesia.org/apps/dsf-dm/cgi-bin/dw.cgi. Presented to (i) Director PK-EKD in MoHA in August 2008 (ii) the donor community in the Donor Working Group in March, 2009 (iii) AKLN in MoHA in May, 2009, and (iv) Bappenas team from Aid for Development Effectiveness Secretariat (A4DES) in September 2009.

The Bureau of Foreign Cooperation (AKLN) in MoHA was identified as the host institution to administer and maintain the data base. AKLN and DSF are jointly recruiting a consultant to be hired in January to update the database content and transfer management to GOI.

In order to meet the objectives stated in 3.4. it is recommended that an activity addressing public accountability mechanisms is added to the DSF Work Plan 2009-2011

This project is complete and has met its objectives. The database is well received and commended as a useful tool for coordination and monitoring of donor support to decentralization. GOI is keen to incorporate the tool in government system for monitoring and reporting on development assistance in decentralization. DSF will continue to work with AKLN to update and upgrade the system.

DSF Quarterly Report December 2009

Output 4: Planning and Performance Measurement Objectives

Indicators

Progress

Rate

Comment

4.1. Provincial and district/municipal spatial plans produced which are in line with national spatial plan and integrated with provincial and district/municipal development plans

Provincial and district/municipal spatial plans completed and approved by respective parliaments

ACN2/2009 Capacity Building for Regional Development Policy Formulation approved. Part 1 commenced in September 2009, implemented by a team of five consultants. Completion by March 2010. Part 2, draft terms of reference and proposed budget ($700,000) under discussion. Implementation planned for April 2010-April 2011. ACN 5/2009 on Institution Building for the Integration of NationalRegional Development and Spatial Planning approved. Consultant contracted from December 2009 to March 2010. Procurement for firm underway. Deadline for technical proposals extended to January 2010. Joint evaluation by Bappenas/DSF. Implementation to commence by end March 2010.

This activity seeks to provide key input into the formulation of regional development strategies for each of the seven major island groups.

4.2. Natural resource planning and management policies developed by targeted local governments

Local governments adopting policies and systems for natural resource planning and management policy

ACN 10/2009 on Strengthening Local Government Natural Resource Management Capability approved. Procurement underway for implementing agency. Implementation to commence by April 2010.

This activity seeks to improve the way natural resources are managed by local governments, thereby contributing to local economic development outcomes.

4.3. Local governments in border regions have improved capacity in economic development planning

Action plans for improved economic development planning completed by selected local governments in border areas

ACN 8/2009 on Institution Building for the Accelerated Development of Border Areas approved. This ACN covers activities related to border area development prioritized by both Bappenas and MoHA. Bappenas activities are WB executed and MoHA activities are GOI executed. A consultant has been contracted by WB to work with Bappenas. Procurement is underway for a firm to implement the main component of the activity. Currently awaiting submission of technical proposals from short-listed firms. Joint evaluation by Bappenas/DSF. Implementation to commence by end March 2010.

Through this activity both MoHA and Bappenas seek to strengthen crossministerial institutions, such as the National Agency for the Management of Border Regions, which manage and develop border regions as well as to improve policy for development of border regions. Initial work for Bappenas is being implemented by a consultant while a qualified implementing agency is identified to implement the larger part of the work planned to commence in January 2010. An additional implementing agency will be contracted (GOI executed) to undertake services to meet MoHA requirements.

This project is complete and has met its objectives.

It also seeks to contribute to the capacity of national level agencies to link planning documents, to improve spatial planning alignment between levels of government and to improve local governmentsâ&#x20AC;&#x; capacity to produce integrated planning documents.

This links to activity 1.4 on service delivery in border regions in order o provide integrated support to these regions by linking Bappenas, MoHA and the Ministry of Disadvantaged Regions.

4.4. Improved quality and availability of subnational statistics for local decision making

Study of sectoral data systems at central and regional level with policy recommendations adopted

â&#x20AC;&#x153;Improving Quality and Availability of Sub-National Statistics for Local Decision Making & Streamlining the Flow of Statistics between Regions and the Centerâ&#x20AC;? study completed in support of BPS and local governments, January 2009.

The findings from this project are

DSF Quarterly Report December 2009

Output 4: Planning and Performance Measurement Objectives

Indicators

Progress

by BPS (Central Statistics Agency)and participating local governments

National and local level sectoral data system analysed for 19 governments (6 provinces, 4 kota, 9 kabupaten), January 2009. Assessment of health data for 11 kabupaten/kota and assessment of education data for 12 kabupaten/kota completed in January 2009. Final report with 21 policy recommendations grouped in the categories of:  System Design, Setup and Maintenance;  Promotion of Data Quality; Application of Information and Communication Technology;  Human, Physical and Financial Resources; Strengthening of Data Sharing, Analysis, and Utilization; and  Legislation and Regulation, May 2009. BPS is using results of this activity in ongoing negotiations with WB for National Statistics Capacity Building program (STATCAP) loan.

Rate

Comment relevant to many other DSF projects since these rely on the availability of quality sub-national sectoral data. Follow-on to this project could include extension of the web-based system for transmitting data from technical agencies at the sub-national level to relevant ministries in Jakarta. Capacity building recommended for local governments in relation to use of information technology.

Output 5: Improved Development Effectiveness in Eastern Indonesia Objectives

Indicators

Progress

Rate

Comment

5.1. Increased cooperation and harmonization among key development stakeholders including national and targeted local governments, NGOs academics, donors, DSF and private sector

Number of new coordination networks and harmonization and sustainability initiatives

Facilitation of South Sulawesi government/donor coordination group including 5 international development partners: quarterly meetings email discussion list; and 3 joint field visits.

Significant support provided on request to international development partners, local governments and local NGOs. Recent evaluation indicates most stakeholders deemed this to be very valuable.

3 workshops supported for JiKTI (Eastern Indonesia research Network) resulting in agreement on priorities, including researcher capacity building and future directions. Most recent workshop resulted in:  showcasing progress of JiKTI supported: Revitalizing Knowledge Sector for Development Policy Program (RSPKP)-BAPPENAS ;  future collaboration with AusAID to strengthen research quality and develop evidence-based policy in Eastern Indonesia.; and  increased alignment with Head of Bappeda Forum (Regional Development Planning) in order to align findings and results of research with the needs of Heads of Bappeda Forum. Infrastructure and support to maintain an active mailing list for sharing research opportunities, research papers and other relevant information for JiKTI members.

SOfEI‟s excellent relationship with high level local government officials in South Sulawesi, including the Governor, allows it to encourage and mentor government and its international partners toward improved cooperation and harmonization. BaKTI will promote the approach and lessons learned to other provincial governments in eastern Indonesia.

DSF Quarterly Report December 2009

Output 5: Improved Development Effectiveness in Eastern Indonesia Objectives

Indicators

Progress

Rate

Comment

7 funded research partnerships including on education, governance, local revenue mobilization and civil service capacity building resulting from a joint JiKTI/AIGRP (Australia Indonesia Governance Research Program) mentoring workshop. Research was completed, published and disseminated. 3 directories on research, researchers and research institutions in Eastern Indonesia prepared jointly with the Indonesian Institute of Sciences and widely disseminated to government, donors and universities to improve access to research and researchers in Eastern Indonesia. Coordination support for education donors in South Sulawesi including quarterly meetings to ensure structured and sustainable foundation through joint activities and facilitation of consistent provincial government leadership. Most recent meeting agreed on a series of joint activities to be implemented under provincial government leadership. SOfEI together with CIDA initiated governance, environment, and gender working group workshops involving CIDA funded project teams in Sulawesi. 5.2. Improved access to information, and increased learning and adoption of good practices among development stakeholders in eastern Indonesia

Library, and Eastern Indonesia Portal and website operational, and accessible, distribution of monthly magazine, and adoption of good practices handbook by number of development stakeholders in eastern Indonesia

Library access has increased from an average of 150 visitors per month in 2007 to 205 per month in 2009. Visitors to the BaKTI facility in Makassar for meetings, events, research and access to computers and internet, increased from an average of 1,000 per month in 2007 to 1,500 per month during 2009. Website traffic has increased from 3000 unique monthly visits to 7000 since the site was re-launched in August 2008. Circulation of BaKTI News is 2,500 per month with estimated read on rate of 5 readers per copy. 2009 survey indicates more than 75% of readers were satisfied with BaKTI News promotion of good practices and improved development knowledge. More than 40% of those surveyed had applied ideas from BaKTI News in their work. Anecdotal and questionnaire responses suggest that smart practices promoted by SOfEI are being replicated in other regions, e.g. Yayasan Siwa Lima, Ambon. Maluku Province reported that an article in BaKTI News about cocoa cultivation developed by IFC PENSA led to a cocoa sustainability partnership between the two groups. Some methods of health mapping initiatives in Luwu Timur published in BaKTI News have been replicated in Mamuju district, West Sulawesi. BaKTI facilitated media tour and series of discussions on development issues in Eastern Indonesia in cooperation with national newspapers

DSF Quarterly Report December 2009

Output 5: Improved Development Effectiveness in Eastern Indonesia Objectives

Indicators

Progress

Rate

Comment

The Eastern Indonesia Forum Conference in August 2010 is expected to identify priority policy issues that will become a focus for future SOfEI efforts for policy influence. The identified issues that need to be a focus include: regional approach with inter-regional cooperation using an island-based development approach; social communication; joint social marketing and joint advocacy for local innovations (local smart practices); and the importance of data in policy making.

and TV stations is underway. Photo exhibition (October â&#x20AC;&#x201C; December 2009) on the dynamics of development in Eastern Indonesia including smart practices facilitated by SOf IE in collaboration with the Alliance of Independent Journalists(AJI). More than 50 photos were displayed during the exhibition at Makassar International Airport. This exhibition received good coverage from local and national media. The Eastern Indonesia Portal was soft launched in November 2009. The knowledge sharing portal is called batukar.info (exchanging information) and it is a user generated content website. 25 people have contributed articles to the portal since the launch and there are currently 72 members. Current hits for batukar.info total more than 1000 hits per 3 days. Batukar.info has been publicized in BaKTI News, Facebook and through mailing lists. Official launch is planned for January 2010 BaKTI News launched a number for SMS communications from readers including comments, complaints and contact data updating. Response has been positive. Handbook of smart practices was completed and published and is being disseminated. 5.3. Development stakeholders in Eastern Indonesia have input and influence on development agendas and policies

National Medium Term Plan reflects Eastern Indonesia development interests and Local Governments adopt policies on targeting poverty programs

Facilitation of 4th semi-annual meeting of Eastern Indonesia Provincial Heads of BAPPEDA dialogue with BAPPENAS on National Medium Term Plan, 2010 - 2014. Priorities identified were taken forward to the national level Development Planning Consultations (Musrenbangnas). The consultation / synchronization workshop of the Eastern Indonesia Region Development Planning on National Medium Term Development Planning (RPJMN) for 2010-2014 using a Regional/Island-based approach was conducted in collaboration with Bappenas. This is the first socialization workshop held outside Jakarta. Local Government, NGOs, academics and private sector representatives from 12 provinces in Eastern Indonesia participated in the workshop to provide inputs for the formulation of the Eastern Indonesia development strategies for RPJMN 2010-2014. DPRD in Central Sulawesi supported to ensure effective discussion and timely passage of the provincial Budget for 2008. A poverty mapping program supported by SOfEI and UNICEF has been replicated in all sub-districts in two districts in West Sulawesi and

DSF Quarterly Report December 2009

Output 5: Improved Development Effectiveness in Eastern Indonesia Objectives

Indicators

Progress

Rate

Comment

is planned to be replicated in all districts and municipalities in West Sulawesi in 2009. 2 Eastern Indonesia Forum regional policy dialogues held with DSF to discuss and promote policy priorities for the region. The Fourth Eastern Indonesia Forum ( EIF) was conducted in August 2009 with 230 participants representing Central Government (MoHA, Bappenas), Local Government (Head of Bappeda, Bupati/Mayor, Head of SKPD, Sekda), Academics, Media, Local NGOs, Legislative members, Private Sector (KADIN), and international development Partners. 12 smart practices from 12 provinces in Eastern Indonesia were presented and documented. 43 organizations participated in exhibitions. A special edition of BaKTI News focused on smart practices and policy discussions during the Forum. Outputs from Forum (including documentation on smart practices) circulated to participants as well as decision makers in government and NGOs. Good media coverage, feedback from Forum participants positive. One smart practice from the Eastern Indonesia Forum is being documented in a documentary film. The film will be launched along with a discussion and campaign on related issues (energy and electricity in Sulawesi and Eastern Indonesia). The film will be promoted in National Media to provide special coverage on development issues in Eastern Indonesia where BakTI plays an active role as an information resource.

DSF Quarterly Report December 2009

Annex B: Financial Report Summary  Donor Contributions: Three donors have pledged a total of USD 45.08 million (exchange rate December 31, 2009).  Commitments: USD 42.63 million or 95% of total pledges has been allocated to 58 projects, the approved DSF Work Plan 2009 – 2011, and DSF operations.  Disbursements: USD 15.93 million or 35.34% of total contributions pledged or 37.37% of allocations.  Remaining Funds: USD 121,707 in unallocated and uncommitted funds after taking into account probable postponement or withholding of GBP 2 million. I. Donor Contributions DSF has 9 donor partners, 3 of whom are financial contributors: DFID, AusAID, and CIDA. Total pledges amount to USD 45.08 million (31 December 2009 exchange rate). About 96.67% of the total amount (USD 43.58 million) has been pledged by DFID. As of 31 December 2009, DSF had received USD 29 million or 64.33% of total pledges (see Table 1): USD 27.50 million from DFID, USD 1 million from AusAID, and USD 500K from CIDA. Table 1: Pledges Received on the Basis of Signed Contribution Agreements Contribution Currency GBP

Contribution Amount 24.36

AusAID

USD

CIDA

CAD

Contributors DFID

Total

43.58

Cash Received in USD million 27.50

1.00

0.50

45.08

29.00

USD equivalent

II. Fund Allocations and Commitments The projects and allocations set out in Table 2 were approved by the MC at its meetings of 24 January 2007, 16 February 2007 and 12 February 2009. Table 2: Fund Allocations and Commitments to 31 December 2009 Total Pledges Investment income (as of December 31, 2009) Projected Administration fee (1% of total pledges)

Budget (USD) 45,079,372 1,355,913 (450,794)

Other Income (as of December 31, 2009) Total Available Funds

24,754 46,009,245

Fund Allocations approved in January 2007 Focal Area 1 Tax Assignment and Own-source Revenue

21,298,513 2,968,714 -

DSF Quarterly Report December 2009

Transfer Borrowing

600,000

Surplus and Reserves

275,000

Data for Monitoring and Evaluation

480,000

Assessing and Revising the System for Setting Territorial Boundaries

227,500

Fiscal Agency Intergovernmental Framework Fund[1]

476,214

Exploring Future Reform Options in Functional Assignment

55,000

Supporting the Establishment of Financially Feasible Minimum Service Standards

305,000

Alternative Mechanism of Service Delivery

200,000

Focal Area 2 Local Government Performance Measurement

1,808,059 187,174

Identification and Replication of Good Practice

478,000

Appraisal : Sub national Investment Climate Reform

600,000

Knowledge Management for Effective Local Government Support Programs

375,500

Mapping and Analysis of Local Planning and Budgeting Processes Improved Evidence Base of Good and Bad Local Perda Focal Area 3 National Program for Community Empowerment CDD Summit

49,703 117,682 5,413,244 1,072,961 421,705

Policy Development for PNPM

58,666

Cost Accounting Review for CDD Programs

16,512

Technical Assessment for CDD Programs

53,685

Information, Education and Communication for PNPM

484,739

User Fee Assessment for CDD Programs

419,000

MIS Improvement for PNPM

106,000

Short Term Monitoring and Evaluation

710,385

Medium / Long Term Monitoring and Evaluation

399,926

CCT Baseline Survey

1,669,665

Support Office for Eastern Indonesia (SOfEI)

3,310,588

Quick starts

97,908

DSF Operations and staffing to December 31, 2009 Staff costs

7,700,000 4,200,000

Operations costs

3,500,000

Approved Work Plan 2009 - 2011 (1st round) ACN 1/2009: Capacity Strengthening Program for DPRD (Local Government Legislatures) ACN 2/2009: Capacity Building for Regional Development Policy Formulation ACN 3/2009: Improving and Piloting the Implementation of Monitoring and Evaluation System of Special Allocation Funds Utilization ACN 4/2009: Management Strengthening and Institution Building for Local Public Service Providers (MSIB-LPSP)

Budget (USD) 350,000

10,890,520 500,000 150,000 550,000 500,000

DSF Quarterly Report December 2009

ACN 5/2009: Institutional Building for the Integration of National Regional Development and Spatial Planning ACN 6/2009: Building Capacity for the Development of Sub-National Government Capital Markets for Municipal Bonds ACN 7/2009: Government Training and Education Centre Development: Introducing Competency Based Standards for Improved Public Service Delivery ACN 8/2009: Institution Building for the Accelerated Development of Border Areas

Budget (USD) 500,000 900,000 797,000 500,000

ACN 9/2009: Capacity Building through Decentralization Education and Training (DET) for Public Service Delivery ACN 10/2009: Strengthening Local Government Natural Resource Management Capability ACN 11/2009: Formulation of Norms, Standards, Procedures and Criteria (NSPK) for Local Government Service Delivery ACN 12/2009: Strengthening Data Provision to the Regional Financial Information System by Sub-National Governments with Stand-Alone Electronic Data Bases ACN 13/2009: Improving the Policy Framework for Fiscal Decentralization

1,593,520

ACN 14/2009: Costing and Pilot Implementation of Minimum Service Standards

1,200,000

Other Allocations (Priority Area 2 approved allocations) Approved DSF Work Plan 2009 - 2011 (2nd round) DPRD Orientation

750,000 1,000,000 250,000 900,000 800,000 7,650,000 500,000

Regional Development Policy

700,000

Local Government Evaluation

300,000

Inter-Regional Cooperation Regional Finance Provincial Government Support Program Regional & Local Economic Development Sub-National Business Climate Reform Grand Design on Implementation of Regional Autonomy

1,000,000 850,000 2,000,000 600,000 1,000,000 700,000

Approved additional DSF Executive Operations Work Plan 2009 - 2011 Knowledge Management for Aid Effectiveness

2,788,505 700,000

DSF Executive Operations

1,502,043

Additional donor contribution for DSF Operations Total allocations to programming & DSF Executive staffing & operations Total Unallocated and Uncommitted Funds[2]

586,462 42,627,538 3,381,7071

[1] This budget is part of the USD 632,500 Fiscal Agency Agreement (FAA) with UNDP. The entire FAA covers 3 work streams: (i) Natural Disaster Management (USD 200,000); (ii) Pemekaran (USD 227,500); and (iii) Data for Monitoring and Evaluation (USD 205,000). In September 2008, the FAA was amended, and the budget revised to USD 476,214. [2] Fund balance for unallocated and uncommitted funds fluctuates according to the prevailing exchange rate and return on investment.

The probable postponement or withholding of GBP 2 million in the current financial year will reduce this figure to USD121, 707.

DSF Quarterly Report December 2009

III. Disbursement Status To date, DSF has received USD 30.38 million, consisting of USD 29 million of donor contributions (64.33% of total pledges) and USD 1.35 million of investment income. As of December 31, 2009, USD 15.64 million had been disbursed to work streams and operations. In addition, a total of USD 290,001 has been charged as WB administration fee (see Table 3). Focal Area 1 (Strengthening Inter-Governmental Framework) has disbursed USD 2.08 million or 70% of the total approved budget of USD 2.97 million. There are signed commitments of USD 107,411. Focal Area 2 (Support to Sub-National Entities) has disbursed USD 1.26 million or 70% of the total approved budget of USD 1.81 million. Two one-year long projects totalling USD 1.078 million - for Appraisal of Sub-national Investment Climate Reform and Identification and Replication of Good Practices â&#x20AC;&#x201C; operated throughout the reporting period. For both projects, disbursements are expected to be spread evenly throughout the project year. The SC meeting held on September 5, 2008 decided to terminate the Local Government Performance Measurement project. The budget allocation, amounting to about USD 1.2 million, has been returned to unallocated funds. Focal Area 3 (Strengthening Accountability, Participation and Civic Engagement) has disbursed USD 5.37 million or 99.26% of the total approved budget of USD 5.41 million. Signed commitments of USD 11,985 are expected to be disbursed in next quarter. Table 3: Disbursement Status of the DSF as of December 31, 2009 Budget (USD)

Disbursement (USD)

Commitments (USD)

Receipts Paid in Contributions

45,079,372

Investment Income

1,355,913

Other Income Total Receipts

29,000,052 24,754

45,079,372

30,380,719

2,968,714

2,081,019

107,411

Transfer

350,000

90,754

Borrowing

600,000

535,452

50,644

Surplus and Reserves

275,000

179,505

3,600

Data for Monitoring and Evaluation

480,000

306,366

7,557

Assessing and Revising the System for Setting Territorial Boundaries Fiscal Agency Intergovernmental Framework Fund

227,500

476,214

Disbursements Fund Allocations approved in January 2007 Focal Area 1 Tax Assignment and Own-source Revenue *

Exploring Future Reform Options in Functional Assignment Supporting the Establishment of Financially Feasible Minimum Service Standards Alternative Mechanism of Service Delivery

55,000

47,467

4,301

305,000

47,920

11,396

200,000

169,842

29,913

DSF Quarterly Report December 2009

Budget (USD) 1,808,059

Disbursement (USD) 1,264,158

Local Government Performance Measurement

187,174

Identification and Replication of Good Practice

478,000

382,392

95,598

Appraisal : Sub national Investment Climate Reform

600,000

469,325

129,791

Knowledge Management for Effective Local Government Support Programs Mapping and Analysis of Local Planning and Budgeting Processes Improved Evidence Base of Good and Bad Local Perda

375,500

57,882

1,728

49,703

Focal Area 2

Commitments (USD) 227,117

117,682

Focal Area 3

5,413,244

5,372,315

11,985

National Program for Community Empowerment

1,072,961

CDD Summit

421,705

Policy Development for PNPM

58,666

Cost Accounting Review for CDD Programs

16,512

Technical Assessment for CDD Programs

53,685

Information, Education and Communication for PNPM

484,739

User Fee Assessment for CDD Programs

419,000

390,395

MIS Improvement for PNPM

106,000

93,676

11,985

Short Term Monitoring and Evaluation

710,385

Medium / Long Term Monitoring and Evaluation

399,926

CCT Baseline Survey

1,669,665

Decentralization Support for Eastern Indonesia (SofEI)

3,310,588

2,819,363

66,118

97,908

Project Operations

7,700,000

4,001,501

121,714

Staff costs

4,200,000

2,197,219

Operation costs

3,500,000

1,804,282

121,714

3,600,000

6,780

106,323

Strengthening Data Provision to the Regional Financial Information System by Sub-National Governments with StandAlone Electronic Data Bases Improving and Piloting the Implementation of Monitoring and Evaluation System of Special Allocation Funds Utilization Improving the Policy Framework for Fiscal Decentralization

250,000

550,000

900,000

Institutional Building for the Integration of National Regional Development and Spatial Planning Capacity Building for Regional Development Policy Formulation

500,000

8,905

150,000

3,614

92,467

Institution Building for the Accelerated Development of Border Areas Strengthening Local Government Natural Resource Management Capability

500,000

3,166

4,950

750,000

Quick starts

Approved Work Plan 2009 - 2011 (1st round) New projects approved and registered in FY09 (1st round)

Approved DSF Work Plan 2009-2011 in process of registration (1st round)

7,290,520

Approved DSF Work Plan 2009 - 2011 (2nd round)

7,650,000

DSF Quarterly Report December 2009

Approved additional DSF Executive Operations Work Plan 2009 - 2011 Total Project Disbursements Administration fee Total Disbursements

Budget (USD) 2,788,505

Disbursement (USD)

42,627,538

15,643,043

450,794

290,001

43,078,332

15,933,044

Outstanding commitments

640,668

Total Cash Available (= Funds receipts - Disbursements Commitments)

Commitments (USD)

640,668

13,807,007

Support Office for Eastern Indonesia (SOfEI) has disbursed USD 2.82 million or 85% of the total USD 3.31 million approved budget. Signed commitments amounting to USD 66K for activities completed before December 31, 2009 will be paid in the next quarter. For DSF operations, USD 4 million has been disbursed. This includes office and project operations as well as staff costs. Outstanding commitments: as indicated in footnote 5 above this refers predominantly to formal contractually-based financial commitments. Such commitments amount to USD 6.4 million in DSF operations, including staff contracts over the life of the DSF plus the existing programmatic contracts of USD 640,668. Total cash available as of December 31, 2009 is USD 13.81 million. These funds are fully committed, that is, either in the process of being allocated to child TF or earmarked for such allocation â&#x20AC;&#x201C; for programming and for DSF Executive staffing and operations.

Outlook Table 4 shows expected cash receipts and disbursements for the current and projected portfolio of projects. The Fund expects to disburse USD 6.56 million to project accounts in Fiscal Year 2010. Table 4 is based on total project funds committed, as set out in the current Contribution Agreement and Administrative Agreement. The current DSF TF closing date is March 31, 2012. Table 4: Projection of Cash Receipts and Disbursements 2007 â&#x20AC;&#x201C; 2011 Year ended June 30, 2010 (USD million)

Year ended June 30, 2011 (USD Million)

Projections as of Mar. 31, 2012 (USD million)

13.81

16.58

13.33

27.5

7.08

CIDA Cash Receipt during current period Investment Income

0.5 29 1.35

0 9 0.42

0 7.08 0.33

0 0 0

Other Income

0.03

Actual per Dec. 31, 2009 Expected Receipts Projected Cash Remaining from prior period Paid in Contributions DFID AusAID

DSF Quarterly Report December 2009

30.38

Year ended June 30, 2010 (USD million) 23.23

Year ended June 30, 2011 (USD Million) 23.99

Projections as of Mar. 31, 2012 (USD million) 13.33

Focal Area 1

2.08

0.89

Focal Area 2

1.27

0.55

Focal Area 3

5.37

0.04

Eastern Indonesia projects (SoFEI)

2.82

0.08

0.1

1.4

3.3

2.3

Public Services

3.2

1.5

Fiscal Decentralization

1.7

0.9

1.55

Planning and Performance Measurement Governance Reform

1.9

0.3

3.6

2.89

15.64

6.56

10.59

9.95

0.29 15.93 0.64 13.81

0.09 6.65 0 16.58

0.07 10.66 0 13.33

0 9.95 0 3.382

Actual per Dec. 31, 2009 Expected Cash Available to DSF TF Disbursements

Quick starts Project Operations Priority Area per FY09

Total Project Disbursements (Projections) Administration fee Total Disbursements (Projections) Outstanding commitments Total Cash Available for subsequent year(s)

The probable postponement or withholding of GBP 2 million in the current financial year will reduce this figure to USD121,707.

DSF Quarterly Report December 2009

Annex C: List of Acronyms

ACCESS ADKASI

= =

ADS AMSD APBD AusAID BAKTI BAPPEDA BAPPENAS BPK BPMD CCT CDD CIDA CIPSED CSO DFID DG DKI DSF EIP EKPPD

= = = = = = = = = = = = = = = = = = = =

ETC FAA GDS2 GOI GTZ HIV/AIDS IDPL IFC ILO IPEA JiKTI KDP KPPOD

= = = = = = = = = = = = =

LGPM LIPI M&E MC MDG MKPP

= = = = = =

MOF MOHA MOU

= = =

Australian Community Development & Civil Society Strengthening Scheme Asosiasi DPRD Kabupaten Seluruh Indonesia (Association of Indonesian District DPRD) Australian Development Scholarship Alternative Mechanisms of Service Delivery Anggaran Pendapatan Belanja Daerah (Province/District Budget) Australian Agency for International Development Bursa Kawasan Timur Indonesia (East Indonesia Exchange) Badan Perencanaan Pembangunan Daerah (Local Planning & Development Agency) Badan Perencanaan Pembangunan Nasional (National Planning & Development Agency) Badan Pengawas Keuangan (Audit Board of the Republic of Indonesia) Badan Pengembangan Masyarakat Desa (Community Empowerment Agency) Conditional Cash Transfer Community Driven Development Canadian International Development Agency Canada Indonesia Private Sector Enterprise Development Civil Society Organization Department for International Development Director General Daerah Khusus Ibukota (Jakarta Special Region) Decentralization Support Facility East Indonesian Portal Evaluasi Kinerja Penyelenggaraan Pemerintah Daerah (Local Government Performance Evaluation) Extended Term Consultant Fiscal Agency Agreement Governance and Decentralization Survey 2 Government of Indonesia Gesellschaft f端r Technische Zusammenarbeit (German Technical Co-operation) Human Immunodeficieny Virus/Acquired Immuno Deficiency Syndrome Infrastructure Development Policy Loan International Finance Cooperation International Labor Organization Initiative for Public Expenditure Analysis Jaringan Peneliti Kawasan Timur Indonesia (East Indonesia Researcher Network) Kecamatan Development Program Komite Pemantauan Pelaksanaan Otonomi Daerah (Monitoring Committee for Local Autonomy Implementation) Local Government Performance Measurement Lembaga Ilmu Pengetahuan Indonesia (Indonesian Institute of Science) Monitoring & Evaluation Management Committee Millennium Development Goal Matriks Konsolidasi Perencanaan dan Penganggaran (Consolidated Matrix for Planning and Budgeting) Ministry of Finance Ministry of Home Affairs Memorandum of Understanding

DSF Quarterly Report December 2009

MSS NCG NGO NSPK NTB NTT OSS PDKBM

= = = = = = = =

PEACH PEMDA PMD PMK PNPM

= = = = =

PSF RED RESPEK RTI SC SOFEI STC TA TAF TF UKAW UNDP UNICEF WB YIPD

= = = = = = = = = = = = = = =

Minimum Service Standard Nordic Consulting Group Non-Government Organization Norma, Standar, Prosedur dan Kriteria (Norms Standard Procedures and Criteria) Nusa Tenggara Barat (West Nusa Tenggara) Nusa Tenggara Timur (East Nusa Tenggara) One Stop Shop Pemutakhiran Data Kemiskinan Berbasis Masyarakat (Community Based Poverty Data Updating) Public Expenditure Analysis and Capacity Enhancement Pemerintah Daerah (Local Government) Pembangunan Masyarakat Desa (Local Community Development) Peraturan Menteri Keuangan (Finance Minister Regulation) Program Nasional Pemberdayaan Masyarakat (National Program for Community Empowerment) PNPM Support Facility Regional Economic Development Rencana Strategis Pembaruan Kampung (Strategic Plan for Village Reform) Research Triangle Institute Steering Committee Support Office For East Indonesia Short Term Consultant Technical Assistance The Asia Foundation Trust Fund Universitas Kristen Artha Wacana (Artha Wacana Christian University) United Nations Development Program United Nations Children's Fund World Bank Yayasan Inovasi Pemerintah Daerah (Foundation for Local Government Innovation)

DSF Quarterly Report December 2009