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December 2009
DSF Quarterly Report
i
DSF QUARTERLY REPORT DECEMBER 2009
December 2009
DSF Quarterly Report
i
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 – 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
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DSF Quarterly Report
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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 DSF-
financed 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:
1 Source: ‘Indonesia Economic Quarterly: Back on Track’. World Bank, Jakarta, December 2009.
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December 2009
DSF Quarterly Report
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, non-
agricultural 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
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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 Notional
Budget
1 DPRD Orientation ACN 1/2009 MoHA (Diklat) $500,000
2 Regional Development
Policy
ACN 2/2009 Bappenas (Pengembangan
Wilayah)
$700,000
3 Local Government
Evaluation
ACN on EPPD MoHA (PDOK) $300,000
4 Inter-Regional Cooperation
ACN 2/2009
ACN 4/2009 Bappenas (Otda)
MoHA (PUM)
$1,000,000
5 Regional Finance ACN 12/2009
ACN 13/2009
MoF (DJPK) $850,000
6 Provincial Government
Support Program (PGSP)
ACN 2/2009
ACN 4/2009
ACN 5/2009
ACN 14/2009
Bappenas (KKDT),
MOHA (UPD, PUM)
Province of Gorontalo and
Bangka Belitung
≤$2,000,000
2 In December 2009, a further no-cost extension – to 31 March 2012 – was formally approved and the Contribution
Agreement was amended accordingly.
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December 2009
DSF Quarterly Report
Proposal Link to ACN Counterpart Notional
Budget
7 Regional & Local
Economic Development
ACN 10/2009 Bappenas ( Perkotdes) $600,000
8 Sub national Business
Climate Reform
DSF Work Plan
2007-2008
continuation
MoHA (Bangda & Diklat)
Bappenas (Biro Hukam)
$1,000,000
9 Grand Design on
Implementation of Regional
Autonomy
ACN 13/2009 MoHA (Otda) $700,000
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 # Name
Budget
Estimate
(USD)
Trust Fund
Status Implementation Status
1/2009 Capacity Strengthening
Program for DPRD (Local
Government Legislatures)
500,000 Grant
Funding
Request
(GFR)
submitted
and approved
- activation
pending GA
signing
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.
2/2009 Capacity Building for
Regional Development
Policy Formulation
142,500 Active Implementation underway
(Sept 28, 2009 – Mar 31, 2010)
3/2009 Socialization and Pilot
Implementation of Joint
Circular Letter (SEB) on
Monitoring of Technical
Implementation and
Evaluation of Use of Special
Allocation Funds (DAK)
550,000 Active REOI posted in Kompas in
December; EOI submission
deadline extended to Jan. 14,
2010.
4/2009 Management Strengthening
and Institution Building for
Local Public Service
Providers (MSIB-LPSP)
500,000 GFR
prepared
Project mode of execution
decided in November. Budget
was adjusted. Grant agreement
under assessment by WB. TORs
for Bank executed activities are
being prepared.
5/2009 Institution Building for the
Integration of National-
Regional Development and
Spatial Planning
483,400 Active 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
DSF Quarterly Report
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December 2009
ACN # Name
Budget
Estimate
(USD)
Trust Fund
Status Implementation Status
6/2009 Building Capacity for the
Development of Sub-
National Government
Capital Markets for
Municipal Bonds
900,000 GFR
submitted
Preparation for international
workshop on municipal bonds
underway (likely mid-March
2010).
TA to DKI Jakarta ongoing - on
preparation of a municipal bond
issue.
7/2009 Government Training and
Education Centre
Development: Introducing
Competency Based
Standards for Improved
Public Service Delivery
797,0003 GFR
submitted
and approved
– activation
pending GA
signing
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.
8/2009 Institution Building for the
Accelerated Development of
Border Areas
500,000
500,000
Active
GFR
prepared
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).
9/2009 Capacity Building through
Decentralization Education
and Training (DET) for
Public Service
Delivery
1,593,520 GFR
prepared
FM and procurement
assessments are in process.
Draft grant agreement is being
reviewed.
10/2009 Strengthening Local
Government Natural
Resource Management
Capability
749,500 Active EOI evaluation report submitted
for Bank approval.
11/2009 Formulation of Norms,
Standards, Procedures and
Criteria (NSPK) for Local
Government
Service Delivery
1,000,000 GFR
prepared
FM and procurement
assessment done by WB. Draft
grant agreement is being
processed. Some Bank-
executed activities are being
procured. ROEI sent to 8
agencies.
3 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.
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December 2009
DSF Quarterly Report
ACN # Name
Budget
Estimate
(USD)
Trust Fund
Status Implementation Status
12/2009 Strengthening Data
Provision to the Regional
Financial Information
System by Sub-National
Governments with Stand-
Alone Electronic Data Bases
250,000 Active 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.
13/2009 Grand Design of Fiscal
Decentralization
900,000 GFR
prepared
Preparation underway for
launch meeting (likely Jan. 24-
26, 2010).
14/2009 Costing and Pilot
Implementation of
Minimum Service Standards
1,200,000 Pending
decision on
mode of
execution
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
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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 application‟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.
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December 2009
DSF Quarterly Report
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
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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, DSF-
supported 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.
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December 2009
DSF Quarterly Report
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 pre-
empts 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
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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 commitments
5 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)
Budget (USD)
Total pledges 45,079,372
Other receipts 24,754
Investment income 1,355,913
Disbursements 15,933,044
Consolidated fund balance 30,526,995
Less GBP 2 million 3,260,000
Available funds 27,266,995
4 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.
12
December 2009
DSF Quarterly Report
Budget (USD)
Total allocations & commitments
Balance of allocations approved January 2007 5,238,142
First round project allocations - approved 2009 10,890,520
Second round project allocations - approved 2009 7,650,000
DSF Executive (to March 2012) 3,366,626
Total allocations & commitments 27,145,288
Total available funds less total allocations & commitments 121,707
Total cash held (funds received – disbursements & commitments) 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
13
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.‟
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 – 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 – 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.
14
December 2009
DSF Quarterly Report
DSF Quarterly Report
December 2009
15
Annex A: Monitoring Frame
Project Name Decentralization Support Facility (DSF) Phase 2 Goals Indicators Progress Rate Comment
Improved socio-economic
development and reduced
poverty
Indonesia's Human
Development Index (HDI)
Purpose Indicators Progress Rate Comment
Equitable, accountable and
high quality public services
provided by national and local
governments
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.
3*
* First milestone/ target 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
December 2009
DSF Quarterly Report
16
Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
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.
3
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.
3
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.
1 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
17
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
women‟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.
X Through this activity both MoHA and
Bappenas seek to strengthen cross-
ministerial 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.
4 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.
December 2009
DSF Quarterly Report
18
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.
**The rating “1” refers to the work
completed in 2009. Subsequent
updates will refer to the project
extension which has been approved.
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
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 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
19
Output 1: Public Service Delivery
Objectives Indicators Progress Rate Comment
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 Indicators Progress Rate Comment
2.1. The Ministry of Finance
Regional Financial
Information System
recording local
government budgets is
upgraded
Number and process of
data entry of local
government budgets
recorded in the Ministry of
Finance Regional Financial
Information System
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.
1 Rating refers to Phase 1 Future
reports will be rated according to
achievement of milestones/target
phase 2.
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.
2.2. Improved fiscal
decentralization policy
Implementation of „Grand
Design of Fiscal
Decentralisation‟ across
government ministries and
local governments
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.
X 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
December 2009
DSF Quarterly Report
20
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
Municipal bond issuance,
including credit worthiness
assessments
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 Sub-
National Government Capital Markets for Municipal Bonds was
approved.
Preparation of international workshop on municipal bonds is
underway.
2
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.
2.4. Improved public financial
management by local
governments
Public financial analysis
completed by selected local
governments as basis for
local government planning
and budgeting
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.
1
Rating pertains to Phase 1.
Phase 2 is currently on hold pending
further discussions with GOI.
DSF Quarterly Report
December 2009
21
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.
X 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.
X 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.
X ACN 9/2009 has been divided into 2
grants: 1) scholarships and 2) short
courses and study tours
December 2009
DSF Quarterly Report
22
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.
X
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.
X Activity pending
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
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.
1 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
23
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 National-
Regional 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.
X This activity seeks to provide key input
into the formulation of regional
development strategies for each of the
seven major island groups.
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 governments‟ capacity to produce
integrated planning documents.
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.
X 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.
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.
X Through this activity both MoHA and
Bappenas seek to strengthen cross-
ministerial 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.
4.4. Improved quality and
availability of sub-
national statistics for
local decision making
Study of sectoral data
systems at central and
regional level with policy
recommendations adopted
“Improving Quality and Availability of Sub-National Statistics for
Local Decision Making & Streamlining the Flow of Statistics between
Regions and the Center” study completed in support of BPS and local
governments, January 2009.
1 This project is complete and has met
its objectives.
The findings from this project are
December 2009
DSF Quarterly Report
24
Output 4: Planning and Performance Measurement
Objectives Indicators Progress Rate Comment
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.
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. 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.
1
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.
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
25
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
1
December 2009
DSF Quarterly Report
26
Output 5: Improved Development Effectiveness in Eastern Indonesia
Objectives Indicators Progress Rate Comment
and TV stations is underway.
Photo exhibition (October – 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
1 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.
DSF Quarterly Report
December 2009
27
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.
December 2009
DSF Quarterly Report
28
DSF Quarterly Report
September 2009
DSF Quarterly Report
December 2009
29 29
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
Contributors Contribution
Currency
Contribution
Amount USD equivalent
Cash Received
in USD million
DFID GBP 24.36 43.58 27.50
AusAID USD 1.00 1.00 1.00
CIDA CAD 0.50 0.50 0.50
Total
45.08 29.00
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
Budget (USD)
Total Pledges 45,079,372
Investment income (as of December 31, 2009) 1,355,913
Projected Administration fee (1% of total pledges) (450,794)
Other Income (as of December 31, 2009) 24,754
Total Available Funds 46,009,245
Fund Allocations approved in January 2007 21,298,513
Focal Area 1 2,968,714
Tax Assignment and Own-source Revenue -
DSF Quarterly Report
September 2009 December 2009
DSF Quarterly Report
30 30
Budget (USD)
Transfer 350,000
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 1,808,059
Local Government Performance Measurement 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 49,703
Improved Evidence Base of Good and Bad Local Perda 117,682
Focal Area 3 5,413,244
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
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 7,700,000
Staff costs 4,200,000
Operations costs 3,500,000
Approved Work Plan 2009 - 2011 (1st round) 10,890,520
ACN 1/2009: Capacity Strengthening Program for DPRD (Local Government
Legislatures)
500,000
ACN 2/2009: Capacity Building for Regional Development Policy Formulation 150,000
ACN 3/2009: Improving and Piloting the Implementation of Monitoring and
Evaluation System of Special Allocation Funds Utilization
550,000
ACN 4/2009: Management Strengthening and Institution Building for Local Public
Service Providers (MSIB-LPSP)
500,000
DSF Quarterly Report
September 2009
DSF Quarterly Report
December 2009
31 31
Budget (USD)
ACN 5/2009: Institutional Building for the Integration of National Regional
Development and Spatial Planning
500,000
ACN 6/2009: Building Capacity for the Development of Sub-National Government
Capital Markets for Municipal Bonds
900,000
ACN 7/2009: Government Training and Education Centre Development: Introducing
Competency Based Standards for Improved Public Service Delivery
797,000
ACN 8/2009: Institution Building for the Accelerated Development of Border Areas 500,000
ACN 9/2009: Capacity Building through Decentralization Education and Training
(DET) for Public Service Delivery
1,593,520
ACN 10/2009: Strengthening Local Government Natural Resource Management
Capability
750,000
ACN 11/2009: Formulation of Norms, Standards, Procedures and Criteria (NSPK) for
Local Government Service Delivery
1,000,000
ACN 12/2009: Strengthening Data Provision to the Regional Financial Information
System by Sub-National Governments with Stand-Alone Electronic Data Bases
250,000
ACN 13/2009: Improving the Policy Framework for Fiscal Decentralization 900,000
ACN 14/2009: Costing and Pilot Implementation of Minimum Service Standards 1,200,000
Other Allocations (Priority Area 2 approved allocations) 800,000
Approved DSF Work Plan 2009 - 2011 (2nd round) 7,650,000
DPRD Orientation 500,000
Regional Development Policy 700,000
Local Government Evaluation 300,000
Inter-Regional Cooperation 1,000,000
Regional Finance 850,000
Provincial Government Support Program 2,000,000
Regional & Local Economic Development 600,000
Sub-National Business Climate Reform 1,000,000
Grand Design on Implementation of Regional Autonomy 700,000
Approved additional DSF Executive Operations Work Plan 2009 - 2011 2,788,505
Knowledge Management for Aid Effectiveness 700,000
DSF Executive Operations 1,502,043
Additional donor contribution for DSF Operations 586,462
Total allocations to programming & DSF Executive staffing & operations 42,627,538
Total Unallocated and Uncommitted Funds[2] 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.
1 The probable postponement or withholding of GBP 2 million in the current financial year will reduce this
figure to USD121, 707.
DSF Quarterly Report
September 2009 December 2009
DSF Quarterly Report
32 32
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 – 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 29,000,052
Investment Income 1,355,913
Other Income 24,754
Total Receipts 45,079,372 30,380,719
Disbursements
Fund Allocations approved in January 2007
Focal Area 1 2,968,714 2,081,019 107,411
Tax Assignment and Own-source Revenue * - - -
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
227,500 227,500 -
Fiscal Agency Intergovernmental Framework Fund 476,214 476,214 -
Exploring Future Reform Options in Functional Assignment 55,000 47,467 4,301
Supporting the Establishment of Financially Feasible Minimum
Service Standards
305,000 47,920 11,396
Alternative Mechanism of Service Delivery 200,000 169,842 29,913
DSF Quarterly Report
September 2009
DSF Quarterly Report
December 2009
33 33
Budget
(USD)
Disbursement
(USD)
Commitments
(USD)
Focal Area 2 1,808,059 1,264,158 227,117
Local Government Performance Measurement 187,174 187,174 -
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
375,500 57,882 1,728
Mapping and Analysis of Local Planning and Budgeting
Processes
49,703 49,703 -
Improved Evidence Base of Good and Bad Local Perda 117,682 117,682 -
Focal Area 3 5,413,244 5,372,315 11,985
National Program for Community Empowerment 1,072,961 1,072,961 -
CDD Summit 421,705 421,705 -
Policy Development for PNPM 58,666 58,666 -
Cost Accounting Review for CDD Programs 16,512 16,512 -
Technical Assessment for CDD Programs 53,685 53,685 -
Information, Education and Communication for PNPM 484,739 484,739 -
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 710,385 710,385 -
Medium / Long Term Monitoring and Evaluation 399,926 399,926 -
CCT Baseline Survey 1,669,665 1,669,665 -
Decentralization Support for Eastern Indonesia (SofEI) 3,310,588 2,819,363 66,118
Quick starts 97,908 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
Approved Work Plan 2009 - 2011 (1st round)
New projects approved and registered in FY09 (1st round) 3,600,000 6,780 106,323
Strengthening Data Provision to the Regional Financial
Information System by Sub-National Governments with Stand-
Alone Electronic Data Bases
250,000 - -
Improving and Piloting the Implementation of Monitoring and
Evaluation System of Special Allocation Funds Utilization
550,000 - -
Improving the Policy Framework for Fiscal Decentralization 900,000 - -
Institutional Building for the Integration of National Regional
Development and Spatial Planning
500,000 - 8,905
Capacity Building for Regional Development Policy Formulation 150,000 3,614 92,467
Institution Building for the Accelerated Development of Border
Areas
500,000 3,166 4,950
Strengthening Local Government Natural Resource Management
Capability
750,000 - -
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
September 2009 December 2009
DSF Quarterly Report
34 34
Budget
(USD)
Disbursement
(USD)
Commitments
(USD)
Approved additional DSF Executive Operations Work Plan
2009 - 2011
2,788,505
Total Project Disbursements 42,627,538 15,643,043
Administration fee 450,794 290,001
Total Disbursements 43,078,332 15,933,044
Outstanding commitments 640,668 640,668
Total Cash Available (= Funds receipts - Disbursements -
Commitments)
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 – 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 – 2011
Actual per
Dec. 31,
2009
Year ended
June 30,
2010 (USD
million)
Year ended
June 30,
2011 (USD
Million)
Projections as
of Mar. 31,
2012 (USD
million)
Expected Receipts
Projected Cash Remaining from prior
period
0 13.81 16.58 13.33
Paid in Contributions
DFID 27.5 9 7.08 0
AusAID 1 0 0 0
CIDA 0.5 0 0 0
Cash Receipt during current period 29 9 7.08 0
Investment Income 1.35 0.42 0.33 0
Other Income 0.03 0 0 0
DSF Quarterly Report
September 2009
DSF Quarterly Report
December 2009
35 35
Actual per
Dec. 31,
2009
Year ended
June 30,
2010 (USD
million)
Year ended
June 30,
2011 (USD
Million)
Projections as
of Mar. 31,
2012 (USD
million)
Expected Cash Available to DSF TF 30.38 23.23 23.99 13.33
Disbursements
Focal Area 1 2.08 0.89 0 0
Focal Area 2 1.27 0.55 0 0
Focal Area 3 5.37 0.04 0 0
Eastern Indonesia projects (SoFEI) 2.82 0.08 0 0
Quick starts 0.1 0 0 0
Project Operations 4 1.4 3.3 2.3
Priority Area per FY09
Public Services 0 0 3.2 1.5
Fiscal Decentralization 0 1.7 0.9 1.55
Planning and Performance
Measurement
0 1.9 0.3 3.6
Governance Reform 0 0 2.89 1
Total Project Disbursements
(Projections)
15.64 6.56 10.59 9.95
Administration fee 0.29 0.09 0.07 0
Total Disbursements (Projections) 15.93 6.65 10.66 9.95
Outstanding commitments 0.64 0 0 0
Total Cash Available for subsequent
year(s)
13.81 16.58 13.33 3.382
2 The probable postponement or withholding of GBP 2 million in the current financial year will reduce this
figure to USD121,707.
DSF Quarterly Report
September 2009 December 2009
DSF Quarterly Report
36 36
Annex C: List of Acronyms
ACCESS = Australian Community Development & Civil Society Strengthening Scheme
ADKASI = Asosiasi DPRD Kabupaten Seluruh Indonesia (Association of Indonesian District
DPRD)
ADS = Australian Development Scholarship
AMSD = Alternative Mechanisms of Service Delivery
APBD = Anggaran Pendapatan Belanja Daerah (Province/District Budget)
AusAID = Australian Agency for International Development
BAKTI = Bursa Kawasan Timur Indonesia (East Indonesia Exchange)
BAPPEDA = Badan Perencanaan Pembangunan Daerah (Local Planning & Development Agency)
BAPPENAS = Badan Perencanaan Pembangunan Nasional (National Planning & Development Agency)
BPK = Badan Pengawas Keuangan (Audit Board of the Republic of Indonesia)
BPMD = Badan Pengembangan Masyarakat Desa (Community Empowerment Agency)
CCT = Conditional Cash Transfer
CDD = Community Driven Development
CIDA = Canadian International Development Agency
CIPSED = Canada Indonesia Private Sector Enterprise Development
CSO = Civil Society Organization
DFID = Department for International Development
DG = Director General
DKI = Daerah Khusus Ibukota (Jakarta Special Region)
DSF = Decentralization Support Facility
EIP = East Indonesian Portal
EKPPD = Evaluasi Kinerja Penyelenggaraan Pemerintah Daerah (Local Government Performance
Evaluation)
ETC = Extended Term Consultant
FAA = Fiscal Agency Agreement
GDS2 = Governance and Decentralization Survey 2
GOI = Government of Indonesia
GTZ = Gesellschaft für Technische Zusammenarbeit (German Technical Co-operation)
HIV/AIDS = Human Immunodeficieny Virus/Acquired Immuno Deficiency Syndrome
IDPL = Infrastructure Development Policy Loan
IFC = International Finance Cooperation
ILO = International Labor Organization
IPEA = Initiative for Public Expenditure Analysis
JiKTI = Jaringan Peneliti Kawasan Timur Indonesia (East Indonesia Researcher Network)
KDP = Kecamatan Development Program
KPPOD = Komite Pemantauan Pelaksanaan Otonomi Daerah (Monitoring Committee for Local
Autonomy Implementation)
LGPM = Local Government Performance Measurement
LIPI = Lembaga Ilmu Pengetahuan Indonesia (Indonesian Institute of Science)
M&E = Monitoring & Evaluation
MC = Management Committee
MDG = Millennium Development Goal
MKPP = Matriks Konsolidasi Perencanaan dan Penganggaran (Consolidated Matrix for Planning
and Budgeting)
MOF = Ministry of Finance
MOHA = Ministry of Home Affairs
MOU = Memorandum of Understanding
DSF Quarterly Report
September 2009
DSF Quarterly Report
December 2009
37 37
MSS = Minimum Service Standard
NCG = Nordic Consulting Group
NGO = Non-Government Organization
NSPK = Norma, Standar, Prosedur dan Kriteria (Norms Standard Procedures and Criteria)
NTB = Nusa Tenggara Barat (West Nusa Tenggara)
NTT = Nusa Tenggara Timur (East Nusa Tenggara)
OSS = One Stop Shop
PDKBM = Pemutakhiran Data Kemiskinan Berbasis Masyarakat (Community Based Poverty Data
Updating)
PEACH = Public Expenditure Analysis and Capacity Enhancement
PEMDA = Pemerintah Daerah (Local Government)
PMD = Pembangunan Masyarakat Desa (Local Community Development)
PMK = Peraturan Menteri Keuangan (Finance Minister Regulation)
PNPM = Program Nasional Pemberdayaan Masyarakat (National Program for Community
Empowerment)
PSF = PNPM Support Facility
RED = Regional Economic Development
RESPEK = Rencana Strategis Pembaruan Kampung (Strategic Plan for Village Reform)
RTI = Research Triangle Institute
SC = Steering Committee
SOFEI = Support Office For East Indonesia
STC = Short Term Consultant
TA = Technical Assistance
TAF = The Asia Foundation
TF = Trust Fund
UKAW = Universitas Kristen Artha Wacana (Artha Wacana Christian University)
UNDP = United Nations Development Program
UNICEF = United Nations Children's Fund
WB = World Bank
YIPD = Yayasan Inovasi Pemerintah Daerah (Foundation for Local Government Innovation)
DSF Quarterly Report
September 2009 December 2009
DSF Quarterly Report
38 38
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