annual report undp 2011

8/23/2019 Annual Report UNDP 2011

1/48

ANNUAL REPORT 2011/2012 1

2011/2012ANNUAL REPORT

UNITED NATIONS DEVELOPMENT PROGRAMME INDONESIA


2/48

2 UNITED NATIONS DEVELOPMENT PROGRAMME

A woman sorting dried sh in Aceh, home to one o Indonesias largest shing communities. Enhancing livelihoods is part o UNDPswork in the country.


3/48


Annual Report UNDPIndonesia

2011/2012


4/48


Cover Photo by Priyombodo: Workers rom the Angke ecotourismpark maintain mangrove seedlings as part o eorts to rehabilitatethe mangrove orest in North Jakarta.Other photos by UNDP sta.

UNDP Indonesia is comitted to minimizing our impacton the environment and the planets resources. Aspart o this commitment, the report is printed on 100percent recycled paper.

United Nations Development Programme in Indonesia

August 2012

Design and production by CV Aksara Buana, Indonesia.

The designations employed and the presentation o material on the maps in this publication do not imply the expressiono any opinion whatsoever on the part o the Secretariat o United Nations or UNDP concerning the legal status o anycountry, territory, city or area or its authorities, or concerning the delimitation o its rontiers or boundaries.

Copyright 2012

The contents o this publication may not be reproduced without prior written agreement rom UNDP Indonesia.

United Nations Development Programme, Indonesia

Menara Thamrin, 8-9th FloorJl. MH Thamrin, Kav. 3Jakarta, Indonesia [email protected]

http://www.undp.or.id


5/48


CONTENTSTABLE OF

MILLENNIUM

DEVELOPMENT

GOALSAND POVERTY

REDUCTION

16

ENVIRONMENT

AND ENERGY

34

CRISIS

PREVENTION AND

RECOVERY

28

DEMOCRATIC

GOVERNANCE

22 FINANCIAL OVERVIEW 40UNDP INDONESIA PROjECTS 14

HOW WE WORk 12

INDONESIA AT A GLANCE 10

INTRODUCTION

Resident Representative

Country Director 7

5


6/48


Farmers in tsunami-aected Aceh, seven years ater the disaster. UNDP supported the clearance o tsunami debris on coastal armlandin Aceh.


7/48


FOREWORD FROMthe Resident RepresentativeI am pleased to present UNDP Indonesias AnnualReport or 2011/2012. The report highlights the main

contributions o the organization to the achievement

o national priorities as identied by National

Medium-Term Development Plan (RPJMN) and the

United Nations Partnership Development Framework

(UNPDF).

Indonesia has made signicant strides towards

building a just, prosperous and democratic

society. In 2011, unemployment numbers continued

to all, and so too did poverty rates. Again, Indonesiarecorded impressive economic growth, which reached

its highest level in 12 years. Democracy continued to

show signs o maturing 13 years into the democratic

reorm process (reormasi). These advances have

urther cemented Indonesias position as a thriving

middle-income democratic country set to become

one o the worlds leading emerging economies and a

powerbroker in important regional and global orums

such as ASEAN and the G20.

Under the 2010-2014 National Medium-Term

Development Plan with its motto Development or

All, the government has identied eleven priority

areas that need to be addressed in order to sustain this

impressive upward momentum.

The UN system in Indonesia works to support the

government in the pursuit o an inclusive, equitable

and sustainable development agenda, with the aim

o ensuring that developmental progress benetsthe poor and most vulnerable. The UNPDF 2011-

2015 is ully aligned with the development and

policy priorities outlined in Indonesias Medium-Term

Development Plan. In particular, it ocuses on three

main objectives, including: i) decreasing inequalities

within and across regions by enhancing provincial

and local capacities to deliver benets, services and

economic opportunities to all; ii) promoting eective

participation and protecting the rights o the poor and

vulnerable; and iii) strengthening national and local

resilience to exogenous shocks and threats ensuingrom climate change and natural disasters. The UNPDF,

which was jointly ormulated by UN agencies active

in Indonesia in close coordination with government,

provides a guiding platorm or UN agencies in

Indonesia to think, plan and deliver as one.

With its broad-based mandate as the development

arm o the UN system, UNDP contributes to the

implementation o all key pillars o the UNPDF. Aimed at

supporting national eorts towards the achievement

o the Millennium Development Goals (MDGs) and

promoting human development, UNDPs country

programme is organized into our components as

ollows: i) MDGs and Poverty Reduction; ii) Crisis

Prevention and Recovery; iii) Democratic Governance

and iv) Environment and Energy. The overall approach

o UNDPs country programme is based on three

strategic elements. They include a broad-based

engagement at the policy level to ormulate policy

solutions to developmental challenges, linking policy

ormulation with best practice and experiences that are

being generated across the archipelago, and ocusing

UNDP supporton the most

disadvantaged

regions.

For impact and

sustainability, UNDP supports and works within

nationally-led processes and programmes.

As part o a widespread network o UNDP operations

in over 170 countries in the world, UNDP Indonesia

draws on a vast knowledge base and pool o expertise

geared to provide globally inormed solutions to localchallenges and issues.

This annual report summarizes the achievements o

UNDP supported programmes in 2011. As outlined

in the report, UNDP has made very encouraging

progress in all areas o its work, including on issues

relating to climate change, disaster risk reduction, and

decentralization, among others. The commitment

and leadership demonstrated by the government

and implementing partners have been critical in this

regard, as has the condence and nancial support

extended to UNDPs programmes by development

partners.

Looking ahead, the UN and UNDP will continue

working with our partners to enhance national

capacity or a sustainable and equitable development.

While progress towards MDGs will continue to drive

our eorts over the next ew years, we will also support

national eorts to dene a post-MDG development

path based on green growth and greater social equity

or lasting benets to Indonesia and its people.

UNDP has made very encouraging progress in all areas o its work, including on

issues relating to climate change, disaster risk reduction, and decentralization,

among others.

El-Mostaa BenlamlihUnited Nations Resident Coordinator or Indonesia

UNDP Resident Representative


8/48


A armer in South Aceh gathers nutmeg ater the seasonal harvest. UNDP supported eorts to promote nutmeg as a bio-trade productor the reintegration o conict-aected populations, including women.


9/48


MESSAGE FROMthe Country Director

This UNDP 2011/2012 Annual Report comes ata particularly opportune moment, as Indonesia

continues to ortiy its position as a middleincome country and an emerging powerhouse

in Asia. The Government o Indonesia has setclear objectives to advance progress towards the

Millennium Development Goals (MDGs). It is alsoseeking to dene a new path to developmentthat will ensure greater equity in peoples access

to opportunities and social services, improvedprotection o the poor and vulnerable, and better

conservation o Indonesias abundant naturalresources.

Indonesia registered a record 6.5 percent GDP

growth in 2011 and reduced the proportion opeople living below the national poverty lineo US $ 1.25/per day to 12.36 percent in 2010,

but critical challenges remain. Growth andpoverty reduction remain uneven between and

across regions. While there are new laws ondecentralization that may partially address the

problem o inequality and uneven growth, thereare many obstacles to putting these new policiesinto practice. Indonesia, as an archipelago

country, is not only vulnerable to climate changebut is also a top emitter o greenhouse gases

(GHG). It is also exposed to requent naturaldisasters that, at times, have caused severe

setbacks to development progress.

This report highlights the eorts that UNDP has

made in the past year to support Indonesia in

tackling these challenges. Among other things,it showcases our work on combatting poverty,

where UNDP has helped the governmentto create pro-poor policies to ensure that

economic growth benets the poorest and mostmarginalized segments o society. It presents

the progress made on our programmes that aresupporting Indonesia in its vital ght againstclimate change and to realize the Presidents

commitment to reduce greenhouse gas emissionlevels by 26 percent in 2020 and to stop urther

degradation o primary orests and peatlands. Inareas such as disaster risk reduction, the report

captures some o the work done to strengthennational development plans and policies and

to ensure adequate unding or activities thatcan help to keep people and communities sae.Progress on our democratic governance portolio

is also highlighted, ocusing on initiatives beingundertaken to improve the decentralization

process and to enhance implementation o theNational Strategy on Access to Justice.

The achievements highlighted in this reportreect UNDPs rm commitment to put people

at the centre o the development agenda - aconcern that is enshrined in UNDPs agship

Human Development Report, produced since1990.

The strong commitment and leadership othe Government o Indonesia has been the

cornerstone in delivering the results outlined in

Beate TranmannUNDP Country Director

this report.We also

acknowledgethat none o

this wouldhave been possible without the support and

condence o our development partners; and Iwould like to take this opportunity to extend oursincerest appreciation and deepest gratitude to

our donors.

Over the coming years UNDP expects Indonesiato continue to grow and develop and to make

urther inroads to improving the welare oits people and reducing inequalities. We also

recognize that Indonesia is changing andassuming new roles in regional and globaldevelopment orums. As the roles and priorities

o Indonesia change, it will require a dierentrelationship with its partners, along with new

orms o development cooperation. UNDP isthereore working closely with the Government

o Indonesia to tailor our support to the evolvingneeds o the country. Building on our strongnational and subnational partnerships and

leveraging our global networks o knowledge andexpertise, we are preparing ourselves to provide

the exible and cutting-edge developmentsolutions that Indonesia will need now and in

the uture.

The achievements highlighted in this report reect UNDPs rm commitment to

put people at the centre o the development agenda - a concern that is enshrined in

UNDPs agship Human Development Report, produced since 1990.


10/48


0.6

1

7

INDONESIAAT A GLANCE

Indonesia has come a long way. As the worlds

ourth most populous nation, Indonesia is otencited as a model o success in transitioning to

democracy.

Less than 14 years ago, Indonesia was shunned by

international investors as the country descendedinto crisis amid a wave o sectarian violence and

political uncertainty.

Today, Indonesia is emerging as one o the topdestinations or international investors as political

stability takes root.

In 2011, Indonesia hit a milestone as it chalked

6.5 percent GDP growth, the highest since 1996.

Indonesia is also ranked as one o the top 10

upward movers in human development overthe past 40 years, as measured by the Human

Development Index (HDI). Indonesia continuedto improve its ranking in 2011.

Despite its remarkable achievements, Indonesiaaces challenges related to poverty and inequality.

Economic progress is uneven amongst Indonesias33 provinces and nearly 30 million people live

below the national poverty line. At the same time,climate change poses a threat or the countrys

development. Indonesia is also acing politicaland administrative challenges. The ght againstcorruption and increasing political representation

or women are high on the agenda.

Human Development Index Indonesia

Year

HDI

0.6

07

0.6

13

20090.5

0.6

0.7

0.8

2010 2011

The Human Development Indexmeasures development by combiningindicators o lie expectancy,educational attainment and income.The index can take a value between0 and 1. Countries with an index over0.800 are part o the High HumanDevelopment group. Between 0.500and 0.800, countries are part o theMedium Human Development group

and below 0.500 they are part o theLow Human Development group.

Indonesia is in the Medium HumanDevelopment group.


11/48


Percent

INDONESIAATAGLANCE

POPULATION

237,641,326 people

Female: 49.66 percent

Male: 50.34 percent

Lie expectancy at birth: 69.4 yrs*

LAND

Total area: 1,904,589 km2

Islands: 13,487

Density: 124 people per km2

ADMINISTRATION

Provinces: 33

Special Autonomy: 3 (Papua, West

Papua, Aceh)

Districts: 399

POLITICS

Political Parties in 2009: 38

Eligible Voters: 176,411,434

Voter Turn Out: 127,983,655

Source: Central Statistics Agency (BPS)

*Human Development Index

2008 2009 2010 20110

2

4

6

8

10

6.1

%

6.1

%

4.5

%

6.5

%

GDP GROWTH WOMEN IN PARLIAMENT

Year

82 %


12/48


HOW WE WORKThe United Nations Development Programme

(UNDP) is one o 22 UN agencies, unds andprogrammes currently operating in Indonesia.

UNDP has been present in Indonesia or over 35years, supporting the government to advance

human development in the country. As one omany UN entities, UNDP implements activities

under the broad umbrella o the UN Partnershipor Development Framework (UNPDF), whichdenes the scope o engagement o the UN

system in Indonesia or the period 2011-2015.Similar to the UNPDF, UNDPs country programme

is urthermore ully aligned with Indonesiasnational development goals as set out in the

National Medium-Term Development Plan 2010-2014 (RPJMN). By ensuring that programmes

are in line with national development prioritiesas well as with the outcomes o the UNPDF,UNDP aims to oster national ownership and

needs responsiveness, while at the same timesupporting coherence and synergies o the UN

system partnership with Indonesia.

UNDP Indonesia ocuses programmatic attentionon our major areas: promoting democraticgovernance; reducing poverty; promoting

disaster awareness and reducing disaster risks;and protecting the environment, which includes

the development o sustainable energy.

In implementing these programmes, UNDPengages closely with a range o partners,including the Government o Indonesia, non-

governmental organizations, civil society

organizations, community-based organizations,multilateral agencies, bilateral donors and privaterms.

UNDP believes that the people o Indonesiashould have ownership over the programmes

and projects we support. All UNDP programmes

thereore actively promote the spirit o mutualrespect, support and accountability and subscribe

to the principle o national ownership as enshrinedin the Jakarta Commitment a declaration put

orward by the government and its developmentpartners in 2009 to strengthen aid eectiveness

in Indonesia. In the true spirit o nationalownership, all o UNDPs assistance in Indonesiais implemented by national entities, including line

ministries and the Ministry o National Planningand Development, and at the subnational level

by line departments, provincial and districtauthorities as well as community groups.

While each programme supported by UNDP

has specic and varied objectives, capacitydevelopment is one aim that all UNDPprogrammes in Indonesia and worldwide have

in common. This takes on many orms includinginstitutional reorm, leadership development,

education, and training or members o the publicsuch as journalists, and womens communities. In

line with this logic, UNDP advisers work side byside with Indonesian counterparts to strengthencapacities in technical matters, policy ormulation

and budget planning, amongst others.

Creating impact through results

As articulated in our global tagline, EmpoweredLives. Resilient Nations. UNDP prides itsel

on promoting transormational change in

developing nations by working both at grass-rootlevels with communities, while at the same timebuilding institutional capacities and providing

policy advice to our partner governments. Bylinking policy with practice, we believe, we cancreate real impact or the people o Indonesia.


13/48


HO

WWEWORk

IMPROVINGINSTITUTIONAL

PERFORMANCE

CREATING

SUSTAINABLE

IMPACT AND

TRANSFORMATIONAL

CHANGE FORDEVELOPMENT

SUPPORTINGPOLICY

FORMULATIONAND KNOWLEDGE

GENERATION

DEVELOPING AND

TESTINGSOLUTIONS AT

THE GROUND LEVEL


14/48


UNDPINDONESIA PROjECTS


15/48


UN

DPINDONESIAPROjECTS

Aceh

North Sumatera

West Sumatera

Riau

Jambi

South Sumatera

Bengkulu

Lampung

Bangka Belitung Islands

Riau Islands

DKI Jakarta

West Java

Banten

Central Java

Yogyakarta

East Java

Bali

West Nusa Tenggara

East Nusa Tenggara

West Kalimantan

Central Kalimantan

South Kalimantan

East Kalimantan

North Sulawesi

Central Sulawesi

South Sulawesi

South East Sulawesi

Gorontalo

West Sulawesi

Maluku

North Maluku

West Papua

Papua

Crisis Prevention andRecovery

Democratic Governance

Milennium Development Goalsand Poverty Reduction

Environment and Energy


16/48


A teacher at a community-run school in Indonesias Papua region. UNDP and the provincial governments o Papua and West Papuawork together with community-based organizations to provide basic services to communities in remote and difcult to reach areasin Tanah Papua.


17/48


2011 marked the 11th anniversary o theMillennium Declaration, when countries

around the world approved eight MillenniumDevelopment Goals (MDGs). Although Indonesia

is largely on-track to achieve many o the MDGsby the 2015 deadline, progress towards the

MDGs has been uneven.

Poverty (MDG 1) is a challenge in Indonesia

despite impressive economic growth in recentdecades. According to the Central Statistics

Agency, almost 30 million people, or 12.36percent, in Indonesia live below the national

poverty line. Certain regions o Indonesia are alsopoorer than others; with poverty rates in regions

like Papua, and West Papua more than doublethat o the national average.1

In the area o maternal health (MDG 5), skilledhealthcare providers attend almost all births in

Jakarta compared to less than hal in ve otherIndonesian provinces. In terms o access to

sae drinking water (MDG 7), Jakarta, Bali andJogjakarta ar surpass Nusa Tenggara Timur(NTT), Papua and Central Kalimantan, with more

than 70 percent o people with access to saedrinking water in the ormer, compared to less

than 30 percent in the latter.

UNDP, in partnership with the IndonesianGovernment, is working towards MDGsachievement and poverty reduction by drawing

on its wealth o knowledge and vast networks

o other experienced UNDP ofces throughoutthe world. UNDP seeks to build stronger pro-poor government policy making, planning and

budgeting processes, to improve service delivery,and to accelerate MDGs achievement. Due touneven progress towards MDG achievements

and poverty reduction, UNDP concentrates itsresources on three o Indonesias most challenged

and underdeveloped regions, including TanahPapua (Papua and West Papua provinces), Aceh,

and NTT.

Building a better institutionalramewor or povertyreduction

Government-driven poverty reduction eortsmust be underwritten by sound policy, planning

and budgeting. I these three components arenot in place, these eorts to reduce poverty are

likely to be ineective.

With this in mind, UNDP supported the

Presidential Regulation Nos 65/2011 and66/2011 on the Acceleration o Development

in Papua and West Papua and the Unit orthe Acceleration o Development in Papua

and West Papua (UP4B) in 2011. Accelerateddevelopment policies and programmes bynational and subnational governments or Tanah

Papua are now coordinated through a single body

under the Ofce o the Vice President, rather thanseveral government bodies, in order to increaseeectiveness and pooling o resources.

At the subnational levels, UNDP supportedprovincial and district governments including

MILLENNIUM DEVELOPMENT GOALS

AND POVERTY REDUCTION

MD

GsANDPOVERTYRED

UCTION

MDG GOALS

Goal 1Eradicate extreme povertyand hunger

1

2

3

4

5

6

7

8

Goal 2Achieve universal primaryeducation

Goal 3Promote gender equality

and empower women

Goal 6Combat HIV/AIDS, malaria

and other diseases

Goal 7Ensure environmental

sustainability

Goal 8Develop a global partnershipfor development

Goal 5Improve maternal health

Goal 4Reduce child mortality

By , UNDP seeks to increase national andsubnational government eectiveness, and the

eectiveness o key stakeholders, in reducing

poverty and vulnerability. UNDP prioritizes

poverty reduction eorts in Tanah Papua, Aceh

and Nusa Tenggara Timur.


18/48


those o Papua and West Papua, to begin

integrating the Human Development Index

(HDI), MDG targets and pro-poor planning,

budgeting and monitoring (P3BM) tools intoMedium-Term Development Plans. Previous

development plans had utilized economicgrowth as the primary metric or measuringdevelopment progress. By providing

subnational governments with more accuratetools to measure and monitor poverty levels, it

is expected that they will be better equipped toormulate targeted policy responses addressing

the most urgent development needs andeectively reduce poverty. Preliminary indicatorsare positive; in West Papua, poverty declined

rom 34.88 percent (2010) to 31.92 percent; whilein Papua, poverty declined rom 36.80 percent

(2010) to 31.98 percent (2011).

As a result o extensive lobbying romdevelopment programmes including the

Netherlands and New Zealand Governments-unded UNDP Peoples Centred DevelopmentProgramme (PCDP), the subnational

governments o Papua and West Papua haveboosted their annual budget on education and

health rom two (2006) to 12.3 percent (2011).District governments including Timika, Yapen

and Sarmi have begun replicating elements othe PCDP programme and are contracting localCSOs as service providers or people living in

isolated areas with unds sourced rom withintheir own budgets.

Extending access to socialprotection and essentialservices

In remote and rural regions, the delivery osocial protection and other essential services

to poor and vulnerable groups are even more

challenging due to poor inrastructure like roads,and because o Indonesias unique geography.

UNDP is working with the Village CommunityEmpowerment and Family Welare Agency

(BPMK&KK) in Papua and West Papua to ensurethe adoption o standardized health and

education systems and procedures by CSOs ,

and sound oversight over the provision o suchservices through joint-monitoring. During July-

December 2011, CSOs provided education andhealth services to approximately 37,135 people,

including 17,584 men, 14,675 women, 4,877children, and 5,068 people unidentied by sex orage. In 2012, it is projected that two percent o

the Tanah Papua population will receive healthand education services rom UNDP and BPMK

supported CSOs. O this gure, approximately 90percent o those targeted will be native Papuans

and West Papuans.

Accelerating MDG achievement

UNDP assisted the Government o Indonesiato launch the MDGs Road Map, a national

plan designed to accelerate progress towardsachieving MDGs including in underperorming

regions. The MDGs Secretariat housed inBAPPENAS is now charged with overseeing

the implementation o this road map. In 2011,subnational MDGs plans (RADs) were alsodeveloped and legislated in 33 provinces

through Governor Regulations with support rom

the MDGs Secretariat, and provincial MDG teamswere established in every province to overseethe implementation o the RADs. The intention

o RAD is to empower subnational governmentsto identiy areas in which MDG acceleration isneeded, and to develop and budget or locally

appropriate strategies to secure sustainable

development. At the end o 2011, regionalgovernment agencies (SKPDs) had prepared

MDGs-appropriate budgets or approval by theregional legislative.

With UNDPs support, the Ministry o Health(MoH) received increased unding rom the

Global Fund or its tuberculosis (TB) programme(MDG 6) implemented at the national and

subnational levels. Principal Recipients likeMoH receive unding based on a sophisticated

set o perormance indicators. UNDP providedtechnical assistance to MoH designed to ensureits perormance rating increased over time.

Beore UNDP support was extended in 2007, thisTB programme was rated B2 (inadequate but

potential demonstrated) by the Global Fund. In2008-09, when UNDP started priority support in

areas like human resource development, nancialmanagement, monitoring and evaluation, and

procurement and supply management, itsperormance rating increased to B1 (moderate).In 2010-11, its perormance rating peaked at

A2 (meets expectations) or its Global FundRound 5 unded programme, and A1 (exceeds

expectations) or its Global Fund Round 8 undedprogramme.

Another Principal Recipient to receive UNDPsupport, Aisyiyah, was recognized by the national

government or its outstanding perormancein the area o TB alleviation in 2011, and was

presented with an MDGs award in early 2012.Signicantly, Asyiyah was not the only UNDP-

supported institution to be recognized by theIndonesian Government or its excellence inthe area o the MDGs. A education-ocused CSO

supported by PCDP known as the Institute o

Community Development and Empowerment(Institut Pengembangan dan PemberdayaanMasyarakat - IPPM) also received a MDGs

runner-up award or its Village Schools or EarlyChildhood Development (Sekolah Kampung-

Anak Usia Dini- SK-AUD) programme in the Sarmi

district o Papua in 2011.

MD

GsANDPOVERTYRED

UCTION

During to , UNDP works towardsincreasing access to and quality o social

protection and other essential services.

During -, UNDP eorts are geared

towards the accelerated achievement o social

development priorities, MDG targets, and

improved human development.


19/48


MD

GsANDPOVERTYRED

UCTION

Fighting Illiteracy in

Indonesias Papua region

Seated in a circle, some children rom the coastal village o Sarmi, Papua, throw

betel nuts to its centre. Others weave colored ropes into shapes as they learn

simple math rom their teac her.

These children are enrolled in an early education programme that blends the

national curriculum with more traditional subjects. The initiative is part o

community eorts to combat low literacy levels in Sarmi, some 120 kilometresrom the provincial capital o Jayapura.

Students who attended the pre-school more actively participated in primary

school classes compared to their peers, said Absalom Abuere, a primary school

teacher in Sarmi.

The pre-school, which is supported by UNDPs People-Centred Development

Programme (PCDP), is run by the Institute o Community Development and

Empowerment (IPPM). In 2011, the school received a Millennium Development

Goal runner-up award, a national recognition organized by the Government o

Indonesia.

Even though Indonesia is on-track to achieve universal primary education by

2015 (MDG 2), progress has been uneven. According to the Central Statistics

Agency (BPS), 32 percent o Papuan children under 15 years o age were illiterate

in 2010. This is the highest illiteracy rate in the country.

PCDP, with unding rom the governments o the Netherlands and New Zealand,

is working with civil society organizations (CDOs) like IPPM to increase access

to basic education and health services, particularly to communities in rural and

remote areas. Many local governments are now replicating this initiative with

unds sourced rom the local government budget (APBD).

PCDP is also working in partnerships with the local governments to develop

pro-poor policies with use o MDGs and human development data. Among

other things, the project is supporting the development o provincial Human

Development Reports, as well as training district government authorities

in pro-poor planning and budgeting (P3BM). In other provinces where the

P3BM methodology has been adopted, APBD allocations grew by 17-20percent overall or services targeting the poor.

Indonesias most eastern province, aces a unique and complex set o

challenges.Impoverished and underdeveloped, the Sarmi district in many

ways reects the overall picture o Papua, a vast and scarcely-populated

province where 31.98 percent o the population live below the national

poverty line.

Sarmi is a traditional community o subsistence armers. Not in the modern

sense as in they have elds hat they harvest and take to market, said the

Head o IPPM, John Rahail. Theyre armers in that they go the orests andcollect ruit, ood. Sometimes they receive money rom the government,

sometimes they dont. But mostly they live o the land and the sea.

The community has limited access to nancial institutions that will lend

them money to start up micro-enterprises.

PCDP is gearing up to provide nancial resources and support services

to micro entrepreneurs. This will be delivered through a joint UNDP-

International Labour Organization (ILO) initiative in partnership with local

governments, CSOs, and commercial banks.

Parts o this story originally appeared in an article rom Tempo English Magazine,

May 2012.

SUCCESS STORY


20/48



21/48


29.9

THE STORY BEHINDTHE NUMBERS

29.9million people in Indonesia live below the national poverty line, as o

September 2011.

36.436.4percent o people in Papua province live below the national poverty line, almostthree times the national average. UNDP prioritizes poverty reduction eorts in

Tanah Papua, Aceh and Nusa Tenggara Timur.

228228per 100,000 live births in Indonesia result in maternal death in Indonesia. Thematernal death rate is one o the highest in South-East Asia.


22/48


A woman casting her vote during the recent local elections in Aceh. UNDP supported the distribution o manuals or poll ofcials inAceh.


23/48


The Government o Indonesia and itsdevelopment partners agree that good

governance is one o the keys to achieving equalprogress and combating poverty. The realization

o a democratic society based on the rule o law,the consolidation o democratic institutions and

the strengthening o decentralized and regionalautonomy, as well as civil society organizationsand political parties are all included in the

national development goals and the 2010-2014National Medium-Term Development Plan. As

a young and vibrant democracy, Indonesia hasachieved much, and is continuously striving

to ensure that democracy benets its citizens.Democracy in Indonesia is constantly evolving

and improving, as can be seen in the IndonesianDemocracy Index1, which increased in ratingrom 60.4 percent to 67.3 percent in 2009 (2010

data is currently being analysed).

UNDP ocuses on supporting the Governmento Indonesia in its eorts to achieve eective

decentralized governance by clariying andstrengthening the role o provincial governments,while simultaneously creating conducive legal

rameworks or the appropriate authoritiesBuilding on its successul support to the National

Strategy on Access to Justice, UNDP is alsoworking to build the capacities o national and

local institutions to improve the access to anddelivery o justice, particularly or the poor andmarginalized, including women. Promoting the

representation and participation o communities,

including civil society groups and women inpolitical and government institutions is anotherkey objective o UNDP.

Representation andparticipation in politics andgovernment

UNDPs objective is to assist Indonesia to ensure

that, by , representation and participation

in political and government institutions,

particularly among women and vulnerable

groups, has s ignicantly increased.

The percentage o emale legislators in

Indonesias parliament has reached 18 percent -its highest level in history though still below the

national target o 30 percent. Voter turnout andparticipation in democratic processes is varied,

but the Indonesia Democracy Index shows thatpolitical participation has been increasing in thecountry, including wider citizen engagement in

policy and decision-making processes.

UNDP Indonesia is working with a wide rangeo government institutions, as well as with

CSOs and other parties including media anduniversities, to build awareness and strengthenthe ability o citizens to engage in both political

and governmental processes. The Civic EducationCentres currently being developed in partnership

with the Ministry o Home Aairs and theUniversity o Indonesia are one example o this

eort, and UNDPs new Strengthening WomensParticipation in Politics and Government inIndonesia project supports representatives and

civil servants at the local, regional and national

levels to ensure that womens rights are taken intoaccount in policy-making through networkingand capacity development. Working with CSOs

DEMOCRATICGOVERNANCE

DEMOCRATICGOVERNAN

CE

1 The Indonesian Democracy Index (IDI) project is a joint eort between the National Planning and Development Agency(BAPPENAS) and UNDP to measure Indonesias progress in various aspects o democratic governance. The Central Statistics

Agency (BPS) and Regional Planning and Development Agencies (BAPPEDA) are also collaborating on the project.


24/48


DEMOCRATICGOVERNAN

CE

at the grass-roots level to raise the awareness

o women about their political and civic rights,women are also encouraged to run as political

candidates. Support has also been providedthrough the Elections Multi-Donor Programme

(with unding support in 2011 rom AusAID),which was extended upon the request o the

Government o Indonesia to urther strengthenthe capacities oelectoral management bodiesor the local elections in Aceh. Support to the

preparation o the elections in Aceh has alsoincluded equipping civil society groups with

skills to monitor election related processes.

Decentralized governance

For - UNDP aims to support provincialgovernments to strengthen their institutional

capacities to perorm their unctions, achieve

their goals, and enhance their accountability

and responsiveness.

Strengthening the capacity o provincial

government remains a challenge, particularlysince the role o the provincial government within

the context o decentralization is not supportedwith clear and sufcient regulations and policies,

despite the disbursement o between 30 to 40percent o the national budget to the provinciallevel. UNDP contributes to eorts to enhance

policy and regulatory rameworks that clariyand strengthen the roles and unctions o

provincial governments and parliaments. Thedrat revision or Law No. 32/2004 on Local

Government is now ready or parliamentaryreview, and mandates the provincial governmentto coordinate and monitor local development

at the district/municipal level. With budget

allocations or local development at district andmunicipal levels having increased in the recentpast, the provinces have an important role to

play, or example, in creating more opportunitiesor people to benet rom regional economicdevelopment, and providing greater access to

public services. One example o UNDPs work

relates to programmes in Aceh and Nias, where,in 2011, UNDP supported the strengthening and

certication o the Aceh Human ResourcesTraining Agency, and also assisted both areas

and their districts to improve their asset andnancial management systems. These initiatives

are aimed at both ensuring that the provinceshave more eective institutions as well as atincreasing the quality o services provided to the

public by government institutions.

UNDP has also supported provincial governmentsin using the Provincial Human Development

Report (and the related indices) as a tool to

improve planning and budgeting processes. Theacceleration o the Millennium Development

Goals (MDG) in the provinces continues to besupported through the integration o Pro-Poor

Planning, Budgeting and Monitoring (P3BM)tools and the MDGs into local planning processes,

which are owned and overseen by provincial anddistrict authorities.

Expanding access to ustice andhuman rights in Indonesia

By UNDPs support should help justice

providers and institutions to become moreeective in protecting human rights, and

ensuring that citizens enjoy improved access to

justice

Legal awareness remains low in the country,mainly on account o poverty and limited literacy.

Access to justice is crucial in combating poverty,and must thereore ocus on the poor anddisadvantaged. In responding to this challenge,

UNDP works both at the grass-roots level and

with the relevant government institutionsto increase citizens awareness o their legaland constitutional rights, while helping the

government to eectively deliver their legal andconstitutional duties. In this way UNDP works todrive real-lie changes rom the community level,

while at the same time ensuring government

ownership o access to justice initiatives.

UNDP supported the drating o the NationalStrategy on Access to Justice, which has been

integrated into the National Medium-TermDevelopment Plan (2010-2014). A National

Access to Justice Secretariat established inBAPPENAS with support rom UNDP acilitatesand oversees the implementation o the

National Strategy on Access to Justice throughmainstreaming key components o the strategy

into the annual work plans and budgets orelevant government ministries and agencies.

At the grass-roots level, UNDP has supported theprovision olegal aid and advocacy services to

over 450,000 poor and disadvantaged peopleto help address legal issues related to land

disputes, discrimination, domestic violence andcorruption. This support was provided through

its agship Legal Access or the Disadvantagedproject (see Success Story box 3), unded bythe governments o Sweden, Norway and the

Netherlands. Building on the success o thisinitiative, UNDP is continuing the project under

the Strengthening Access To Justice initiative,which will begin in 2012. The government

has recently passed a new legal aid bill, theimplementation o which UNDP also plans tosupport to ensure that citizens ully benet rom

legal aid services, targeted specically to thepoor.

This work has been particularly successul in Aceh,

where with UNDP support, guidelines on adat(customary) justice have been developed, and

adatleaders and institutions have been provided

with clearer jurisdiction and the tools required

to operate more transparently and accountably.District governments in Aceh have integratedadat justice services into their administrations

activities and provided unding or adat justiceinitiatives.


25/48


Fighting or socialjustice in Indonesia

Three years ago, Indonesian housewie Ibu Odah had little knowledge o legal aairs.

Now, the mother o two is at the oreront o a legal ght against domestic violence in

the remote island o Ternate, in the North Moluccas province o I ndonesia.

With the knowledge and expertise that she has acquired, Ibu Odah is now able to

provide ree legal advice to victims o domestic violence in Tobololo village. As a

trained paralegal, Ibu Odah has so ar handled three cases o domestic violence and

succeeded in bringing them to the local judicial court.

To an outsider this may not be considered very signicant but within her community,

where domestic violence is viewed as a private aair and where many victims tend

not to speak up or ear o retaliation, this is seen as a remarkable achievement and a

positive beginning. Not long ago, domestic violence was usually handled within the

amily according to adat laws (social customs), not by ofcial legal channels.

Ibu Odah is one o hundreds o thousands o people who have beneted rom a legal

empowerment and assistance project supported by the Government o Indonesia and

UNDP. It seeks to expand access to justice or all Indonesians but particularly or the

poor and marginalized.

The project, which was unded by the Governments o the Netherlands, Norway

and Sweden, helps to increase the poors awareness o their legal rights, as well asdeveloping the capacity o government and non-governmental actors to better serve

and protect the rights and interests o the poor.

With the backing o her husband, Ibu Odah signed up or paralegal training ater

learning about the importance o social justice at a community meeting organized in

her village by one o UNDPs programme partners.

Indonesia has recently graduated to become a lower middle income country, but

46 percent o the countrys 237 million people live on less than US $2 per day, and

women make up the bulk o the vulnerable population. Legal awareness remains low

in the country, mainly on account o poverty and illiteracy. An assessment o legalawareness in ve provinces by UNDP and the Government o Indonesia recognized

the importance o access to justice in combating poverty and the need to ocus on

the poor and disadvantaged and their access to justice. This has in turn inormed

the National Strategy on Access to Justice, which is included in the ongoing national

development plan.

Over 450,000 poor and disadvantaged people acing legal problems such as land

disputes, discrimination, domestic violence and corruption have beneted rom the

programme.

In a recent statement, the programmes director, Diani Sadiawati, said that adequate

legal services and training can help disadvantaged communities, women and citizens

with low education levels take control over their lives.

The national strategy ocuses on several themes so that the benets o legal

empowerment go beyond personal legal disputes. These include legal and judicial

reorm, legal aid, local governance, land and natural resources and the rights o

women. While supporting access to legal services, the strategy recognizes that justice

or the poor involves ensuring air and equal access to all public services.

In Central Sulawesi Province, people rom Tangkumaho village and surrounding areas

have been able to deend their land and mangroves rom destruction by a privatecompany that plans to build commercial sh ponds. Armed with the knowledge o

their legal rights, the community was very pro-active in demanding legal proo o the

companys permissions. As it turned out, the company had been operating illegally.

The community managed not only to preserve their way o lie but they also protected

their land rom destruction.

Meanwhile, in Ternate, Ibu Odahs domestic violence campaign has resulted in a

breakthrough or womens rights on the island. One o the cases she handled involved

an unmarried couple and she was able to push or a legal conviction rom the judicial

local court despite the act that the countrys Anti-Domestic Violence Law had

previously been applied only to married couples.

Ibu Oda hopes that other women in her community will ollow in her ootsteps, and

that in the uture t here will be many more people like her working or social justice.

This story original ly appeared in UNDPs Development Advocate in January, 2012.

SUCCESS STORY

DEMOCRATICGOVERNAN

CE


26/48



27/48



450,000450,000people have received legal assistance and advocacy services through UNDPs Legal

Access or the Disadvantaged (LEAD) project. Building on the success o LEAD, in

2011 UNDP launched the second phase o the project named Strengthening Accessto Justice (SAJI).

3.23.2million people in Aceh were registered to vote in the 2012 election. This was the

second direct election to be held ollowing the 2005 Helsinki Peace Agrement which

marked an end to three decades o conict. UNDP supported the drating and the

distribution o vote counting manuals or poll ocers and CSO monitoring.

1818percent o Indonesias parliamentarians are women the highest proportion in

history, but still below the national target o 30 percent.


28/48


A mural that promotes disaster awareness at a school in Yogyakarta. UNDP supports the integration o disaster risk reduction intoeducation curriculum in Indonesia.


29/48


Indonesia has seen a noticeable decline inviolent communal clashes in recent years, but

over 4,000 violent incidents took place acrossthe country between 2008 and 2010 (Institut

Titian Perdamaian/Peace Building Institute, 2011).Conicts not only cause loss o lie, but alsoresult in damage to critical inrastructure and

private assets, which aects social, economicand political development. Indonesia is also one

o the most disaster-prone countries in the world,susceptible to tsunamis, volcanic eruptions,

oods, landslides, droughts and orest res.According to the National Disaster Management

Agency (BNPB), 644 disasters occurred in 2010;claiming the lives o 1,711 people, while 1,398,923people were injured or reported missing. A total

o 14,639 houses were irreparably damaged,while 2,839 houses were moderately damaged

and 25,030 houses slightly damaged. Eectivemitigation o the economic and social impacts

o disasters remains a challenge. According tothe Natural Hazards Risk Atlas (2011), out o196 countries, Indonesia has the ninth highest

economic risk rom natural disasters.

In 2011, UNDP, in close partnership with theGovernment o Indonesia, worked to ensure

policy and regulatory rameworks were inplace to increase Indonesias resilience to crisisand external shocks. UNDP has also continued

to strengthen the capacity o national and

subnational institutions, and that o multi-stakeholder orums, in conict prevention, post-crisis recovery, and risk reduction. Assistance

to these institutions and orums has includedsupport to the development and applicationo appropriate crisis management tools and

mechanisms.

Strengthening conictprevention

Eective conict identication and managementis dependent upon sound policy and institutional

rameworks to guide government and widercommunity eorts. Policy rameworks must also

help to shit emphasis rom a reactive, security-driven response to conict towards a proactive

approach o conict prevention, which seeksto improve social welare and promote thedevelopment o communities over the medium-

to long-term in order to preempt conict andcommunity discontent.

Since 2006, UNDP has worked to strengthen

conict-related policy and institutionalrameworks, through the Peace ThroughDevelopment (PTD) project jointly unded by

the governments o the Netherlands, New

Zealand, United Kingdom, and Sweden. In 2011,this project helped acilitate the drating o anational bill on social conict management,

which extends greater powers to subnationalgovernments in conict management. Thebill also prioritizes social welare eorts over

security approaches to conict management.

CRISIS PREVENTION

AND RECOVERY

CRIS

ISPREVENTIONANDRECOV

ERY

UNDPs conict prevention programmes work

towards strengthening government and

civil society capacity to identiy and manage

conict and their wider social, economic, and

political impacts. The objective is to ensure

that, by 2015, a robust policy ramework is in

place, matched with a coordinated institutional

arrangement, and unds or on-the-ground

initiatives that can help to prevent uture

conicts.


30/48


The aim o UNDPs support in this area is toensure that by , both government and

civil society organizations can demonstrate a

stronger, aster and more eective response to

disasters and conict.

Over the course o -, UNDP is

supporting the Government o Indonesia

and communities to substantially reduce

and minimize the adverse impact o disasters

through the application o disaster risk

reduction policies, regulations and practices.

CRIS


ERY

The bill, which is expected to be passed in

2012, incorporates international standards andbest practices on conict management. At the

subnational level, the project helped acilitate thedrating o a number o regulations on conict

prevention and management .

During the late 1990s to the early 200s,sectarian conict in Maluku, Central Sulawesiand North Maluku impacted social welare and

development in communities. Mainstreamingconict-sensitive approaches into development

planning is considered an important tool orconict prevention and management. For thisreason, in 2011, PTD supported eight districts

in Central Sulawesi, Maluku and North Malukuto pass local regulations on conict-sensitiveplanning. These interventions are expected toprovide the oundation or longer-term peace

through ensuring greater participation odisenranchised communities in development

planning processes and more equitabledevelopment or all.

Improving post-crisis recoveryresponsiveness

In 2011, UNDP worked with the Government

o Indonesia and civil society to developeective institutional rameworks and tools thatstrengthen and improve efciency o response.

The 2004 tsunami in Aceh and 2005 earthquakein Nias sparked the rst government-led, large-scale recovery eort and exposed important

weaknesses in Indonesias institutional andregulatory ramework including the lack o adedicated disaster management agency to

eectively respond to disasters. Since then, a

pivotal process o institutional reorm has begun.

UNDP supports the new National Agency orDisaster Management (BNPB), established in

2008, to strengthen its ability to manage post-disaster recovery eorts. During 2009-2011,

UNDP worked in close collaboration with BNPB torene concepts, methodologies and instrumentsto assess recovery needs.

Through the Disaster Risk Reduction-based

Rehabilitation and Reconstruction (DR4) project,UNDP has been working with partners todevelop an Indonesia-specic Post DisasterNeeds Assessment (I-PDNA) methodology andtools, based on the global PDNA ramework

jointly developed by the World Bank, EuropeanUnion and United Nations Development Group

(UNDG). The methodology and tools serve asimportant reerences or the development o

post-disaster action plans or rehabilitation andreconstruction. The I-PDNA not only captures thephysical damage and losses, but also incorporates

an assessment o human recovery needs.

BNPB has improved its capacity to applyevidence-based approaches to recovery

planning, and the application o the I-PDNAwill help to reduce recovery response time andimprove recovery coordination. A strengthened

recovery ramework is contributing to themainstreaming o recovery into national planning

and budgeting, and to the recognition o theneed to prioritize disaster risk reduction (DRR)

initiatives in rehabilitation and reconstruction.BNPB has led the process o developing a legalramework or the I-PDNA, which resulted in the

enactment o a Ministerial Decree in late 2011

ensuring that the guidelines will orm the basisor all uture post-disaster rehabilitation andreconstruction eorts.

At the subnational level, UNDP, with undingrom the Multi Donor Fund or Aceh and Nias,

continued to support recovery eorts in Acehand Nias in the elds o governance, livelihoods,inrastructure, environment, risk reduction and

social cohesion, while also assisting rehabilitationand recovery in Mentawai, Yogyakarta and

Central Java. Partnerships between thenational and provincial governments have been

strengthened, while subnational governmentagencies have enhanced capacity to take upleading roles in coordinating on-going recovery

eorts and aligning these with longer-termprovincial development plans.

Moving towards disaster risreduction

Changes to the national and subnational

policy and regulatory ramework have seena shit rom a more reactive approach to

disaster relie and response to a disastermanagement approach, which ocuses on

longer-term risk reduction. UNDP is working inpartnership with the Indonesian Governmentto promote the integration o risk reduction into

development processes, and the governmenthas included disaster risk reduction as one o

its key development priorities in the NationalMedium-Term Development Plan (2010-14).

Two additional strategic plans have also beenormulated: the National Disaster Management

Plan (2010-2014); and the National Action Planor Disaster Risk Reduction (2010-2012). These

plans serve as the basis or implementing disastermanagement and risk reduction measures at thenational and subnational levels.

In line with its global commitment to allocateone per cent o its national development budget

SUCCESS STORY


31/48


Reclaiming land,reclaiming livelihoodsThe small village o Kareung Ateuh nestled at the oot o a staggering lush green

mountainside in Aceh Jaya district, was one o the areas aected by the 2004 tsunami

which killed more than 120,000 people and displaced around hal a million others i n

Aceh alone.

Cut Awi says shes been a armer since she was born. She wouldnt tell her age, but

this sturdy woman, with her hard hands and weathered ace, has seen a lot o lie in

the last ew years.

Cut and her neighbours lost almost everything in 2004 when a 20-metre high wall o

water swept away their loved ones, their livelihoods, and their belongings. The entire

west coast o Aceh was submerged and the bits o road visible through the high

water were reduced to rubble.

There was noth ing let, she says. Everything was destroyed.

Approximately 26,000 hectares o Acehs agricultural land near the coast lay under

a thick layer o ocean sediment and debris. Farmers who survived the disaster were

orced to abandon their elds in the i mmediate atermath in order to contribute to

the recovery and reconstruction eort and provide or th eir amilies.

In response to this need, the Tsunami R ecovery Waste Management Programme

(TRWMP) helped armers by clearing their land o its sediment, returning over 1,000

hectares o land to ertile ground or uture crops. TRWMP has made sure that i ts an

eort ignited at the heart o the community. Farmers are the key players in returning

the land to normal. They have been involved in the process rom the very beginning.

Idrus is the head o the armers association In Kareung Ateuh says, Were committed

to reactivating these elds.

As soon as we can, well get back to work, Nahon, another armer, calls out.

The heavy equipment does the dense work and armers ollow behind with shovels

and hoes in hand or more intricate excavation. It was such a system that enabled the

armers to nd sixteen bodies, buried under layers o silt since 2004.

While reminders o their loss are everywhere, the armers have their goals in sight.

With the eld restored, the community o 135 households can restart their liveli-

hoods and improve their standards o living.

This project has made a big contribution to our lives, says Ilyas, 30, a community

leader. There was no way or us to provide or our amilies. Now that we can grow

crops again, we can improve our economy.

This story originally appeared in the Multi Donor Fund Progress Report, December 2011.

SUCCESS STORY

CRIS


ERY

to disaster risk reduction, the Government o

Indonesia has increased resource allocationsrom the national budget to over US $ one billion

in 2011, a two-old increase rom 2010. Currently,11 o the 25 line ministries have special workingunits devoted to disaster-related issues, and 12

percent o the provinces have ormulated disaster

management regulations. With UNDPs support,our provinces and one municipality haveprepared and endorsed disaster management

regulations.

There have also been signicant changes to the

institutional landscape, with all 33 provincesestablishing disaster management agencies.

UNDP has also acilitated the establishment o DRRorums including one national, nine provincialand one municipal level orum. These platorms,

which bring together various stakeholders rom

government, civil society and the private sectorto support the national and local governments intheir risk reduction initiatives, have been critical

in ensuring disaster risk reduction becomeseverybodys business. Risk maps have alsobeen developed in ve provinces, which in turn

inormed the ormulation o a standardized

national risk assessment methodology andguideline adopted by BNPB.

DRR tools have been adopted and applied bycommunities. Greater community awareness

about DRR is linked to strong community

preparedness and resilience in responding todisasters. Inormation and strategies on DRRhave been integrated into school curricula and

40 villages across six provinces have developedplans to increase their preparedness.


32/48



33/48



billion US $ has been allocated rom the annual national budget or disaster risk

reduction in 2011. This represents a two-old increase rom the previous year.

11

on the application o the Indonesia Post Disaster Needs Assessment (I-PDNA) is

the Ministerial Decree issued by the National Disaster Management Agency. The

I-PDNA provides clear guidance to local governments in conducting comprehensive

post-disaster assessments that capture both physical damage and losses, as well as

human recovery needs.

15/201115/2011

CSOs were involved in the drating o a national bill on social conict management,

which will provide the legal ramework or Indonesia.

8585


34/48


A mangrove orest in Pantai Indah Kapuk, North Jakarta. UNDP supports initiatives to protect Indonesias coastline through thereplanting o mangrove trees.

ENVIRONMENT AND


35/48


As an archipelago country, Indonesia isvulnerable to the multiple threats o climate

change. Rising sea levels, temperatures andacidity can potentially aect marine ecosystems,

impact resh water supplies and ood security omillions o people, and threaten the livelihoodsand orce the displacement o signicant coastal

populations. Temperature extremes, shitingo seasons and extreme weather events aect

agriculture, inrastructure, the economy, health

and the quality o lie. The degradation oorests and marine environments directly strainecosystem services, and impact Indonesias

unique biodiversity, which ranks among therichest in the world. Indonesia is also a top emittero greenhouse gases (GHG), which contribute

to climate change. A large proportion o theseemissions originate rom deorestation and

land-use changes. With the third largest covero tropical orest in the world, it will thereore

be critical or Indonesia to sustainably manageits natural resource base while simultaneouslypursuing economic growth, advancing overall

development and continuing to reduce poverty.As one o the rst countries to commit to a

signicant reduction in its GHG emissions, theGovernment o Indonesia is leading the way

towards a greener uture. Indonesia aims toreduce emission levels by 26 percent by 2020below the business-as-usual trajectory, and by

41 percent with adequate international support.

However, Indonesia relies more heavily on ossiluels than it does on renewable energy, andthere are still a number o barriers to adopting

renewable energy, despite a growing demandand clear economic benets. With an increaseddemand and rising costs o energy this is a

problem Indonesia must address in order toensure that citizens have access to clean and

reliable sources o energy that are producedefciently.

In 2011, UNDP made signicant progress insupporting the Government o Indonesia in

meeting its goals o ensuring sustainable naturalresource management, increasing the use o

renewable and efcient energy, and stimulating

climate change adaptation and mitigation.UNDPs Environment, Energy and Poverty andMDG portolios are increasingly being synergized

as the ofce seeks to support Indonesia indening a greener path to development, whichsustains economic growth while ensuring equity

and protection o the country s natural resources.

Sustainable natural resourcemanagement

The objective o UNDPs work on natural

resource management is to help ensure that

by , national and subnational capacities

to eectively manage natural resources

and address environmental pollution are

strengthened. Special attention is given to orest

and watershed management as well as coastal

and marine ecosystems.

The eects o climate change (such as droughts,oods, landslides) most severely impact the poorand vulnerable, who lack coping mechanisms

to deal with external shocks. As such, climatechange tends to aggravate poverty. It is thereorecrucial to strengthen both the capacities o the

ENVIRONMENT AND

ENERGY

ENVIRONMENTANDENERGY


36/48


management have also been developed, as haveprovincial regulations on incentive mechanisms

or environmental services. UNDPs interventionhas also inspired a number o state-owned

companies in the banking and energy sectors(including Bank Mandiri, Indonesia Power,

Geodipa and the state-owned electricity rm -PLN) to align their Corporate Social Responsibilityprogrammes to meet the government target o

enabling local communities to replant 500,000hectares o degraded land annually.

As a coastal nation, environmental issues relatedto marine ecosystems are also crucial, and UNDP

completed a baseline study to identiy theunderlying causes o marine pollution, which

will be used to support the development o the

Marine National Action Plan. Through the Arauraand Timor Seas Action (ATSEA) programme, UNDPproduced a scientic tool (Trans-boundary

Diagnostic Analysis TDA) to examine the stateo the marine environment and the root causesor its degradation, including governance and

socio-economic actors. The analysis providesa reliable reerence and is expected to inorm

the ormulation o a Regional Strategic ActionProgramme and National Action Plans by the

Governments o Indonesia and Timor-Leste toaddress trans-boundary challenges such as illegaland unregulated shing and marine pollution.

In line with the ongoing National Implementation

Plan on the elimination o Persistent OrganicPollutants (POPs), which are toxic chemicals

used or pest control and crop production, areport monitoring POPs residues in water, soil,river sediment, biota and sh was completed.

Thanks to UNDPs eorts supported by the

Global Environment Facility, nine o the 21 POPschemicals, determined by the UN Conventiono Stockholm, have been included in Indonesias

regulations.

Renewable andefcient energy

UNDPs eorts are geared towards developing

policies and strengthening national institutions

to better promote, adopt and manage renewable

energy and energy efciency by .

Increasing access to clean, aordable and

renewable energy in Indonesia is important orboth climate change mitigation and adaptation.

Barriers to the commercialization o renewableenergy and energy efcient technologies includethe lack o policy incentives and nancing

acilities, as well as limited technical andinstitutional capacity to develop, manuacture,

operate and manage renewable energy/energy

efcient operations. The low level o societalawareness o the benets o utilizing renewableenergy and ensuring energy efciency also poses

a challenge.

UNDP, through the Global Environmental

Facility, works with the government to removethe various barriers to the commercialization

o renewable energy and energy efcienttechnologies. UNDPs integrated microhydro and

pro-poor biogas initiatives are examples o thekind o pilot activities aimed at removing barriersto acilitate the more broad-based utilization o

renewable sources o energy. In the early phase,these initiatives supported the development

and implementation o Ministerial RegulationNo. 31/2009 on pricing policies or small and

medium renewable energy projects. Later stageshave ocused on technical capacity building andaccess to nancing through collaboration with

Green PNPM (a national programme on rural

inrastructure). Through this partnership, morethan 200 microhydro operators were certiedand 300 community-based RE systems were

installed across Java, Sumatera and Sulawesi.UNDP also established demonstration sitesacross seven provinces in Indonesia, and shared

ENVIRONMENTANDENERGY

government and local communities to managenatural resources (e.g. mangroves, orests, coral

rees) in an efcient and equitable manner inorder not only to shield poor and marginalized

populations against the most severe eectso climate change, but also to protect their

livelihoods.

Reorestation and watershed management can

support communities in sustainably managingthese natural resources. A lack o coordination

between government institutions/agenciesand the continuation o a top-down approachto reorestation and watershed management

initiatives have limited the potential positiveimpact o these programmes while constraining

community involvement and closing

opportunities to generate greater environmentalbenets. Through the Global EnvironmentFacility (GEF), UNDP addressed this issue by

acting as a catalyst and acilitator to ensure thatbenets actually reach the intended recipients,such as Community-based Organizations (CBOs)

and their associated member households. Thisinitiative also bridged national and district level

activities to reinorce vertical coordination acrossthe various levels o government agencies.

In 2011, UNDP provided grants amounting to US $221,000 to CBOs in order to support government

programmes to eectively manage naturalresources and address environmental pollution

in 223,000 hectares o critical watershed areas insix provinces and eight districts. This initiative alls

within and supports broader government eortsto rehabilitate and protect 108 critical watershedsacross the country. UNDP capacity building

programmes or government sta resulted in

the development o drat Community-BasedForest and Water Management Plans and CBOannual work plans on participatory watershed

rehabilitation. In line with these priorities,drat government regulations on watershed

SUCCESS STORY


37/48


Biogas energy as a catalyst orenvironmentally riendly businessesSitting outside his barn, 45-year old Sukaningoyo a armer rom the East Javanese

town o Lumajang, proudly tells the story how cow manure has changed his lie orthe better.

With support rom the United Nations Development Programme (UNDP) and Korean

Energy Management Corporation (KEMCO), Sukaningoyo has turned manure into

biogas, which not only provides or an unlikely source o income but also constitutes

a renewable and clean energy source or cooking while covering his (and the neigh-

boring houses) electricity consumption needs.

Beore we had biogas, every two or three days I had to look or rewood in our

armland, and it was difcult to cook when there was no rewood, said Sukaningoyo,

smiling to the nod o his wie, Suliamsi. Now, all we have to do is turn the knob and

were ready to cook, said the ather o one son, adding biogas also powers light

bulbs inside his barn, located behind his house.

The project has also stimulated the local economy with sh-eed and organic erti-

lizer cultivation. This community-based business model makes use o the entire cycle

o waste management, ensuring there is little residue let rom dairy arming.

Sukaningoyo was able to increase his household income with the sales o dry biogas

waste to industrial companies that urther process it into commercial sh eed and

organic ertilizer. Since the start o the initiative his income has gone up by almost 14

percent rom previously US $ 88 per month to now US $ 100 per month.

Under UNDPs Switch to Biogas project, Sukaningoyo and his wie have not only in-

creased their income, but have also succeeded in limiting the environmental impact

o their animal husbandry activities. Like most dairy armers in Lumajang, he used todiscard the untreated cow manure into nearby ravines thus causing water and soil

pollution.

The manure us ed to ow to our land and oth er peoples lands, said Sikaningoyo,

whose amily is one 38 households

in his village participating in theproject.

Furthermore, cow manure is known

to release large amounts o methane

gas a greenhouse gas contributing

to climate change. The biogas project provides one answer to this challenge.

We are starting to see the real impact o this project to the armer households

thanks to the reduced pollution o s oil and water rom livestock said Verania Andria,

the project manager.

Biogas initiatives like this one can also help easing the limited access to electricity

nationwide. According to Indonesias Energy Ministry, 42 million households acrossthe archipelago lack access to electricity. Furthermore the International Energy

Agency estimates in 2009 around 124 million people in Indonesia have no access to

clean cooking acilities.

In this project, dairy armers are not only taught the meticulous process o turning

cow manure into biogas, but are given access to micro-credit loans. This helps them

in paying back the loan installments received to set up the biogas acility.

Looking ahead, UNDP plans to scale up the project targeting around 400 households

in Java, and 200 households each in Sulawesi and Sumatera. The scale-up will also

include working with the Ministry o Energy and the Department or Industry, Trade,

Cooperatives and Small- and Medium-Enterprises on the required policy changes to

ensure the linkage between access to energy and economic growth, and to acilitatethe provision o micro-loans by commercial banks to low income households in order

to nance biogas acilities. The success o the project has prompted interest rom the

private sector to replicate the project in other dairy arming communities as part o

their corporate social responsibility programmes.

best practices or the microhydro and biogas

sectors to acilitate increased access to energyand to improve household incomes in theseprovinces.

UNDP also made progress in promotingenergy efciency through the implementationo microturbine cogeneration technology

and energy efciency labeling initiatives. Thelatter resulted in the development o six drat

ministerial regulations on standardization and

labeling or home appliances. To acilitate the

implementation o these ministerial regulations,UNDP has supported the Ministry o Energyand Mineral Resources in working with testing

laboratories and certication agencies, and

acilitated coordination among ministries, theAssociation o Electronic Manuacturers and theJapan International Cooperation Agency (JICA).

Microturbine cogeneration technologies,which are expected to reduce energy use by

approximately 35 percent, have been installed in

our commercial sites in Java and Sumatra. Theywill be used as learning centres aimed at urtherpromoting energy efcient technologies. UNDP

also worked with high school teachers, industry

and commercial sectors to launch consumereducation programmes on energy efcientlabelling and cogeneration technology.

These initiatives are also expected to contributeto reducing greenhouse gas emissions.

ENVIRONM

ENTANDENERGY


38/48


and basic arrangements and guidelines wereormulated or the uture REDD+ Agency, a

Monitoring, Reporting and Verication (MRV)institution and a REDD+ und channeling

mechanism. These institutions are expected tobe ofcially established in 2012.

Indonesia is a pilot country o the UNs globalReducing Emissions rom Deorestation and

Forest Degradation (REDD) programme, whichis hosted by three UN Agencies- FAO, UNDP and

UNEP. This programme has been operationalin Indonesia since 2009 with the Ministry oForestry as the implementing partner. In 2011,

UN-REDD continued to pioneer the use oFree,

Prior and Inormed Consent (FPIC) tools in

Central Sulawesi, which targets orest-dependent

communities to ensure that they will be involvedin decision-making processes related to land use.UN-REDD initiated the process o establishing

REDD+ compliant payment mechanisms,dening how payments are distributed to localcommunities based on their perormance o

reducing emissions rom deorestation and orestdegradation. Payment mechanisms also include

benet distribution systems, which determinethe eligibility o communities (or individuals)

to receive benets (including cash, technicalassistance or equipment, etc.). Strong emphasisis put on anti-corruption measures guaranteeing

a transparent, efcient, and equitable system indecision making and distribution.

UNDP has been promoting inormation sharing

and best practices on REDD+ across thesetwo initiatives and beyond. Furthermore, topromote a comprehensive approach by the

UN system towards REDD+, a UN Ofce or

the Coordination o REDD+ in Indonesia

Climate change adaptation andmitigation

UNDPs objective is to support Indonesia to

establish a coordinated and sound climate

change policy ramework by . This is with a

longer-term view o helping to reduce emissionsrom deorestation and land degradation and

to better protect the countrys precious natural

resources.

Approximately 70 percent o Indonesias GHGemissions are related to land degradation andland use/conversion. The government has taken

important steps to address these emissions andbroader climate change concerns through the

establishment o a special Presidential Task Force

on REDD+, which has been tasked to developthe institutional and nancing architecture orREDD+ in Indonesia.

In 2010, the governments o Indonesia andNorway signed a Letter o Intent to establish a

partnership or REDD+ to tackle greenhousegas emissions rom deorestation and orest and

peatland degradation. Norway agreed to provideup to US $ one billion to Indonesias REDD+

eorts. UNDP was appointed to support theGovernment o Indonesia and the PresidentialREDD+ Task Force in the implementation o

the initial phase marked by the Letter o Intent,worth US $ 30 million.

Substantial progress was made on REDD+ in

2011, including the release o a PresidentialInstruction or a two-year moratorium on theissuance o orest licenses to stop the clearance

o primary orests and peatlands. In addition,

a national REDD+ strategy was developed,

(UNORCID) was established under the auspiceso the UN Secretary General. The Secretary

General launched the branch ofce o UNORCIDin Indonesias REDD+ pilot province o Central

Kalimantan during his visit to Palangkaraya inNovember 2011.

UNDP has also supported the operational andinstitutional development o the IndonesiaClimate Change Trust Fund (ICCTF), which wasendorsed in 2011 by key government institutions,

including the National Climate Change Counciland the Ministry o Environment, to becomeIndonesias rst National Implementing Entity or

the UNFCCC Adaptation Fund. This is signicantas it paves the way or ICCTF to become a major

platorm or key climate change initiatives in

Indonesia. ICCTF unded three pilot projectsunder its thematic windows land-basedmitigation, resilience and adaptation, and energy;

all o which directly contribute to the Presidentscommitment to reduce GHG emissions.

ENVIRONMENTANDENERG

Y


39/48


ENVIRONM

ENTANDSUSTAINABLEENERGY

A orest in Berau, Kalimantan. Indonesia has the third largest orest area in the world, and UNDP supports eorts to protect Indonesiasorests, particularly those in Kalimantan.


40/48


THE STORY BEHIND


41/48



2626percent is the greenhouse gas emission reduction target that the Government o

Indonesia has committed to by 2020.

54,71654,716kilometers is the length o the Indonesian coastline. UNDP empowers local

communities living along the worlds second longest coastline to restore and

manage coastal and marine ecosystems.

300300

soccer pitches is the estimated orest area being destroyed in Indonesia every hour.

UNDP supports the establishment o a national agency and fnancing mechanisms

or the reduction o emission rom deorestation and degradation.

FINANCIAL


42/48


FINANCIALOVERVIEW

EXPENDITURE BY

PROGRAMME AREA

37 %

15 %

31%

15 %

2 %

Unit Programme AreaDelivery

(in US $ million)Delivery by

Programme Area

CPRU Crisis Prevention and Recovery 15.6 37%DGU Democratic Governance 6.3 1 5%

EU Environment and Energy 13.4 31%

PRU MDGs and Poverty Reduction 6.3 15%

Others Non-programme 0.8 2 %

42.4 100%

Crisis Prevention and Recovery

Democratic Governance

Environment and Energy

ExpenditureUNDP Indonesias total programme expenditure

in 2011 was US $ 42.4 million. The largestprogramme amounting to 37 percent o the total

came rom Crisis Prevention and Recovery at US$ 15.6 million. Environment and Energy occupiesthe second largest position with a delivery o

US $13.4 million, equivalent to 31 percent to the

total. Expenditure in the Democratic Governancearea was US $ 6.3 million, representing 15 percent

o the total. The expenditure in the eld o MDGsand Poverty Reduction was US $ 6.3 million and15 percent o the total.

EXPENDITURE BY SOURCE OF

FUNDS (in millions o US $)

US $ 4.7 (11 %) US $ 37.7 (89 %)

Core Resources Non-Core ResourcesMDGs andPoverty Reduction

Others

Core Funding

FUNDS RECEIVED IN 2011


43/48


TOP 10 NON-CORE CONTRIBUTORS (in thousands o US $)CORE/NON-CORE CONTRIBUTIONS(in millions o US $)

FINAN

CIALOVERVIEW

US $ 5.3 (14 %) US $ 33 (86 %)

MDF

AusAID

GEF

UKaid

Netherlands

New Zealand

USAID

Norway

DSF

OthersCore Resources Non-Core Resources

US $ 13.042 (39%)

US $ 5.657 (17%)

US $ 1.000 (3%)

US $ 1.000 (3%)

US $ 700 (2%)

US $ 2.486 (9%)

Core FundingThe core unding received by UNDP Indonesia rom headquarters was US $ 5.3 million in 2011.

Non-core FundingFunding received by UNDP Indonesia rom development partners, including bilateral and multilateral unders and the privatesector, totalled US $ 33.093 million in 2011. The top ten contributors to UNDP Indonesia in 2011 include the ollowing:

US $ 2.121 (6%)

US $ 2.408 (7%)

US $ 3.707 (11%)

US $ 972 (3%)

No ContributorContributions

(in US $)Contributions in

Currency o OriginCurrency o

Origin%

1 Multi Donor Fund or Aceh and Nias (MDF)* 13,042,161 13,042,161 US $ 39%

2 Government o Australia/ Australian Agency orInternational Development (AusAID)

5,657,354 5,250,000 AU $ 17%

3 Global Environment Facility (GEF) 3,706,599 3,706,599 US $ 11%

4 Government o the United Kingdom/ UKaid 2,407,705 1,500,000 GB 7%

5 Government o the Netherlands 2,121,400 2,121,400 US $ 6%

6 Government o New Zealand/ New Zealand Aid

Programme

1,000,000 1,000,000 US $ 3%

7 Government o the United States o America/ United StatesAgency or International Development (USAID)

1,000,000 1,000,000 US $ 3%

8 Government o Norway 971,560 5,500,000 kr 3%

9 Decentralization Support Facility (DSF)* 700,000 700,000 US $ 2%

10 Others 2,485,698 9 %

33,092,477 100%

* Funds administered by the World Bank

ACRONYMS


44/48


ACRONYMS

ASEAN Association o Southeast Asian Nations

ASTEA Araura and Timor Seas Ecosystem Action

AusAID Australian Agency or International Development

BAPPEDA Badan Perencanaan dan Pembangunan Daerah (RegionalPlanning and Development Agency)

BAPPENAS Badan Perencanaan dan Pembangunan Nasional(NationalPlanning and Development Agency)

BPMK&KK Badan Pemberdayaan Masyarakat Kampung dan

Kesejahteraan Keluarga (VillageCommunity Empowermentand Family Welare Agency)

BNPB Badan Nasional Penanggulangan Bencana (NationalDisaster Management Agency)

BPS Badan Pusat Statistik(Central Statistics Agency)

CBO Community-Based Organization

CSO Civil Society Organization

CSR Corporate Social Responsibility

DR4 Disaster Risk Reduction-based Rehabilitation and

Reconstruction

DRR Disaster Risk Reduction

FAO Food and Agriculture Organization

FPIC Free, Prior and Inormed Consent

G20 Group o 20

GEF Global Environment Facility

GHG Greenhouse Gas

HDI Human Development Index

ICCTF Indonesia Climate Change Trust Fund

IDI Indonesian Democracy Index

ILO International Labour Organization

I

annual report undp 2011

Documents