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ATURANMAITURANMAINURANMAINARANMAINATANMAINATUNMAINATURMAINATURAAINATURANINATURANMNATURANMATURANMAITURANMAINURANMAINARANMAINAT

ATURANMAITURANMAINURANMAINARANMAINATANMAINATUNMAINATURMAINATURAAINATURANINATURANMNATURANMATURANMAITURANMAINURANMAINARANMAINATTRIPLE - A

in cooperation with Regional Development and Poverty Reduction Program - RDPRP

ATURAN MAIN PROCESSES AND PROCEDURES

FOR GOVERNMENT-SERVICE DELIVERY

M A I N R E P O R T3 1 M A R C H 2 0 0 5

F I N A L

Bantul Regency

TRIPLE - Ain cooperation with

Regional Development and Poverty Reduction Program - RDPRP

ATURAN MAIN PROCESSES AND PROCEDURES

FOR GOVERNMENT-SERVICE DELIVERY

M A I N R E P O R T3 1 M A R C H 2 0 0 5

F I N A L

Bantul Regency

TABLE OF CONTENTS i

RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005

TABLE OF CONTENTS

PART I: INTRODUCTION.......................................................................................... 1-1

1 BACKGROUND ..............................................................................................1-1

2 PURPOSE.......................................................................................................1-2

3 APPLICATION ................................................................................................1-3

PART II: UNDERLYING PRINCIPLES ..................................................................... 2-1

1 GENERAL .......................................................................................................2-1

2 GOOD GOVERNANCE ..................................................................................2-2

3 JUSTICE AND EQUITY AS DEVELOPMENT OBJECTIVES........................2-3

4 BUSINESS ETHICS AND GLOBAL COMPETITIVENESS ...........................2-4

5 THE ROLES AND RESPONSIBILITIES OF THE CIVIL SOCIETY...............2-5

6 LOCAL GOVERNMENT AUTONOMY ...........................................................2-6

7 INTER-MUNICIPAL COOPERATION ............................................................2-7

PART III: USERS AND USES OF THE HANDBOOK .............................................. 3-1

1 USERS AND USES OF THE HANDBOOK....................................................3-1

2 INSTITUTIONAL ROLES AND RESPONSIBILITIES ....................................3-3 2.1 Governor .............................................................................................3-3 2.2 Legislative Councils ............................................................................3-3 2.3 Mayor/Regent......................................................................................3-4 2.4 Joint Secretariat ..................................................................................3-4 2.5 Handbook Committee .........................................................................3-4 2.6 Office of Public Information and Communication ...............................3-5 2.7 Government Agencies Responsible for Public-Service Delivery........3-5

3 GENERAL PROCEDURES ............................................................................3-6 3.1 Launching and Dissemination.............................................................3-6

3.1.1 Definition .................................................................................3-6

TABLE OF CONTENTS ii


3.1.2 Procedures and Process Flow Chart......................................3-6 3.1.3 Explanatory Notes and Guidelines .........................................3-8

3.2 Inquiries...............................................................................................3-9 3.2.1 Definition .................................................................................3-9 3.2.2 Procedures and Process Flow Chart......................................3-9 3.2.3 Explanatory Notes and Guidelines .......................................3-10

3.3 Revision and Development of the Handbook ...................................3-11 3.3.1 Definition ...............................................................................3-11 3.3.2 Procedures and Process Flow Chart....................................3-11 3.3.3 Explanatory Notes and Guidelines .......................................3-13

PART IV: GOVERNMENT SERVICE DELIVERY..................................................... 4-1

1 BUILDING PERMIT (IMB)...............................................................................4-2 1.1 Definition .............................................................................................4-2 1.2 Procedures and Process Flow Chart..................................................4-2 1.3 Explanatory Notes and Guidelines .....................................................4-4

2 Business Permit (HO) .....................................................................................4-6 2.1 Definition .............................................................................................4-6 2.2 Procedures and Process Flow Chart..................................................4-6 2.3 Explanatory Notes and Guidelines .....................................................4-8

3 CONSTRUCTION SERVICE BUSINESS PERMIT......................................4-11 3.1 Definition ...........................................................................................4-11 3.2 Procedure and Process Flow Chart..................................................4-11 3.3 Explanatory Notes and Guidelines ...................................................4-13

4 ADVERTISING PERMIT...............................................................................4-15 4.1 Definition ...........................................................................................4-15 4.2 Procedures and Process Flow Chart................................................4-15 4.3 Explanatory Notes and Guidelines ...................................................4-17

5 PERMIT FOR KIOSK & STALL USE............................................................4-19 5.1 Definition ...........................................................................................4-19 5.2 Process and Procedure Flowchart ...................................................4-19 5.3 Explanatory Notes and Guidelines ...................................................4-21

6 PUBLIC TRANSPORTATION FRANCHISE ................................................4-22 6.1 Definition ...........................................................................................4-22 6.2 Procedures and Process Flow Chart................................................4-22

TABLE OF CONTENTS iii


6.3 Explanatory Notes and Guidelines ...................................................4-24

7 TRANSPORTATION BUSINESS PERMIT ..................................................4-26 7.1 Definition ...........................................................................................4-26 7.2 Procedures and Process Flow Chart................................................4-26 7.3 Explanatory Notes and Guidelines ...................................................4-28

8 TRADING PERMIT (SIUP) ...........................................................................4-30 8.1 Definition ...........................................................................................4-30 8.2 Procedures and Process Flow Chart................................................4-30 8.3 Explanatory Notes and Guidelines ...................................................4-32 8.4 Sanctions ..........................................................................................4-33

9 COMPANY REGISTRATION (TDP).............................................................4-35 9.1 Definition ...........................................................................................4-35 9.2 Procedures and Process Flow Chart................................................4-35 9.3 Explanatory Notes and Guidelines ...................................................4-37 9.4 Sanction ............................................................................................4-38

10 INDUSTRY REGISTRATION (TDI), INDUSTRIAL BUSINESS PERMIT (IUI), AND INDUSTRY EXPANSION PERMIT (IPI) ..............................................4-39 10.1 Definition ...........................................................................................4-39 10.2 Procedures and Process Flow Chart................................................4-39 10.3 Explanatory Notes and Guidelines ...................................................4-41 10.4 Sanction ............................................................................................4-42

11 LAND-USE CONVERSION PERMIT............................................................4-44 11.1 Definition ...........................................................................................4-44 11.2 Procedures and Process Flow Chart................................................4-44 11.3 Explanatory Notes and Guidelines ...................................................4-46

12 ISSUANCE OF CIVIL REGISTRATION CERTIFICATE ..............................4-48 12.1 Definition ...........................................................................................4-48 12.2 Procedures and Process Flow Chart................................................4-48 12.3 Explanatory Notes and Guidelines ...................................................4-50

13 JOB SEEKER CARD ISSUANCE.................................................................4-53 13.1 Definition ...........................................................................................4-53 13.2 Procedures and Process Flow Chart................................................4-53 13.3 Explanatory Notes and Guidelines ...................................................4-55

TABLE OF CONTENTS iv


14 PERMIT FOR EMPLOYING BLUE-COLLAR WORKERS OVERSEAS......4-56 14.1 Definition ...........................................................................................4-56 14.2 Procedures and Process Flow Chart................................................4-56 14.3 Explanatory Notes and Guidelines ...................................................4-58 14.4 Sanction ............................................................................................4-58

15 PERMIT FOR MAKING EFFICIENT USE OF

WORK TRAINING FACILITIES....................................................................4-59 15.1 Definition ...........................................................................................4-59 15.2 Procedures and Process Flow Chart................................................4-59 15.3 Explanatory Notes and Guidelines ...................................................4-61

16 CLASS – C MINING PERMIT (SIPD/SIPD.PR) ...........................................4-63 16.1 Definition ...........................................................................................4-63 16.2 Procedures and Process Flow Chart................................................4-63 16.3 Explanatory Notes and Guidelines ...................................................4-65 16.4 Sanction ............................................................................................4-66

17 LOCATION PERMIT .....................................................................................4-68 17.1 Definition ...........................................................................................4-68 17.2 Procedures and Process Flow Chart................................................4-68 17.3 Explanatory Notes and Guidelines ...................................................4-70 17.4 Sanction ............................................................................................4-72

18 NOTIFICATION/CLARIFICATION LETTER OF LAND ACQUISITION OR LAND-USE PLAN ....................................................................................................4-73 18.1 Definition ...........................................................................................4-73 18.2 Procedures and Process Flow Chart................................................4-73 18.3 Explanatory Notes and Guidelines ...................................................4-75

19 Water Supply Connection .............................................................................4-77 19.1 Definition ...........................................................................................4-77 19.2 Procedures and Process Flow Chart................................................4-77 19.3 Explanatory Notes and Guidelines ...................................................4-79 19.4 Sanction ............................................................................................4-80 19.5 Payment ............................................................................................4-80

TABLE OF CONTENTS v


PART V: URBAN MANAGEMENT............................................................................ 5-1

1 FORMULATION OF DEVELOPMENT AGENDA...........................................5-3 1.1 Organizing for the Activity ...................................................................5-3

1.1.1 Definition .................................................................................5-3 1.1.2 Procedures and Process Flow Chart......................................5-3 1.1.3 Explanatory Notes and Guidelines .........................................5-4

1.2 Formulation of Draft Development Agenda ........................................5-6 1.2.1 Definition .................................................................................5-6 1.2.2 Procedures and Process Flow Chart......................................5-7 1.2.3 Explanatory Notes and Guidelines .........................................5-8

1.3 Establishment of Investment Evaluation and Selection Criteria.........5-9 1.3.1 Definition .................................................................................5-9 1.3.2 Procedures and Process Flow Chart......................................5-9 1.3.3 Explanatory Notes and Guidelines .......................................5-10

1.4 Conduct of Public Hearing and Finalization of the Agenda..............5-11 1.4.1 Definition ...............................................................................5-11 1.4.2 Procedures and Process Flow Chart....................................5-11 1.4.3 Explanatory Notes and Guidelines .......................................5-13

2 LONG-TERM PLANNING.............................................................................5-15 2.1 Definition ...........................................................................................5-15 2.2 Process and Procedures ..................................................................5-15 2.3 Explanatory Notes and Guidelines ...................................................5-16

3 MEDIUM-TERM PROGRAMMING...............................................................5-19 3.1 Preparation of Long List of Investment Packages............................5-19

3.1.1 Definition ...............................................................................5-19 3.1.2 Procedures and Process Flow Chart....................................5-19 3.1.3 Explanatory Notes and Guidelines .......................................5-20

3.2 Assessment of Financing Capacity for Implementation ...................5-21 3.2.1 Definition ...............................................................................5-21 3.2.2 Procedures and Process Flow Chart....................................5-22 3.2.3 Explanatory Notes and Guidelines .......................................5-24

3.3 Preparation of Short List of Investment Projects ..............................5-26 3.3.1 Definition ...............................................................................5-26 3.3.2 Procedures and Process Flow Chart....................................5-26 3.3.3 Explanatory Notes and Guidelines .......................................5-27

3.4 Conduct of Public Hearing ................................................................5-28 3.4.1 Definition ...............................................................................5-28 3.4.2 Procedures and Process Flow Chart....................................5-28 3.4.3 Explanatory Notes and Guidelines .......................................5-30

3.5 Pre-Feasibility Analysis of Investment Packages .............................5-31

3.5.1 Definition ...............................................................................5-31

TABLE OF CONTENTS vi


3.5.2 Procedures and Process Flow Chart....................................5-31 3.5.3 Explanatory Notes and Guidelines .......................................5-31

3.6 Finalization of the Agenda ................................................................5-33 3.6.1 Definition ...............................................................................5-33 3.6.2 Procedures and Process Flow Chart....................................5-33 3.6.3 Explanatory Notes and Guidelines .......................................5-35

4 IMPLEMENTATION ......................................................................................5-36 4.1 Feasibility Study ................................................................................5-37


4.2 Detailed Engineering Design (DED) .................................................5-41 4.2.1 Definition ...............................................................................5-41 4.2.2 Procedures and Process Flow Chart....................................5-41 4.2.3 Explanatory Notes.................................................................5-44

4.3 Land Acquisition for Public Facilities ................................................5-47 4.3.1 Definition ...............................................................................5-47 4.3.2 Process and Procedures ......................................................5-47 4.3.3 Explanatory Notes.................................................................5-50

4.4 Procurement of Materials and Construction Service through International Competitive Bidding ..........................................................................5-51 4.4.1 Definition ...............................................................................5-51 4.4.2 Process and Procedure ........................................................5-52 4.4.3 Explanatory Notes and Guidelines .......................................5-54

4.5 Procurement of Material and Construction Service through Local Competitive Bidding ..........................................................................5-58 4.5.1 Definition ...............................................................................5-58 4.5.2 Process and Procedures ......................................................5-58 4.5.3 Explanatory Notes and Guidelines .......................................5-60

4.6 Procurement of Material and Construction Service through Direct Appointment ......................................................................................5-62 4.6.1 Definition ...............................................................................5-62 4.6.2 Process and Procedures ......................................................5-63 4.6.3 Explanatory Notes and Guidelines .......................................5-65

5 OPERATION AND MAINTENANCE.............................................................5-67 5.1 Operation and Maintenance (Urban Infrastructure)..........................5-67


5.2 Operation and Maintenance of PDAM..............................................5-71 5.2.1 Definition ...............................................................................5-71 5.2.2 Process and Procedures ......................................................5-71 5.2.3 Explanatory Notes and Guidelines .......................................5-74

5.3 Water Tariff Setting...........................................................................5-76

5.3.1 Definition ...............................................................................5-76

TABLE OF CONTENTS vii


5.3.2 Procedures and Process Flow Chart....................................5-76 5.3.3 Explanatory Notes and Guidelines .......................................5-78

5.4 Tariff Setting for Water Quality Control.............................................5-79 5.4.1 Definition ...............................................................................5-79 5.4.2 Procedures and Process Flow Chart....................................5-79 5.4.3 Explanatory Notes and Guidelines .......................................5-81

5.5 Tariff Setting of Solid Waste Management Service..........................5-83 5.5.1 Definition ...............................................................................5-83 5.5.2 Procedures and Process Flow Chart....................................5-84 5.5.3 Explanatory Notes and Guidelines .......................................5-86

6 MONITORING AND EVALUATION…………………………………………….5-88

6.1 Formulation of Monitoring Benchmarks and Criteria ........................5-88 6.1.1 Definition ...............................................................................5-88 6.1.2 Procedures and Process Flow Chart....................................5-88 6.1.3 Explanatory Notes and Guidelines .......................................5-89

6.2 Project Reporting and Monitoring .....................................................5-90 6.2.1 Definition ...............................................................................5-90 6.2.2 Procedures and Process Flow Chart....................................5-90 6.2.3 Explanatory Notes and Guidelines .......................................5-93

6.3 Monitoring and Evaluation of Project Benefits..................................5-94 6.3.1 Definition ...............................................................................5-94 6.3.2 Procedures and Process Flow Chart....................................5-94 6.3.3 Explanatory Notes and Guidelines .......................................5-96

7 INSTITUTIONAL CAPACITY BUILDING......................................................5-98 7.1 Organization Analysis and Design....................................................5-98

7.1.1 Definition ...............................................................................5-98 7.1.2 Procedures and Process Flow Chart....................................5-99 7.1.3 Explanatory Notes and Guidelines .................................... 5-101

7.2 Training Needs Identification ......................................................... 5-105 7.2.1 Definition ............................................................................ 5-105 7.2.2 Procedures and Process Flow Chart................................. 5-106 7.2.3 Explanatory Notes and Guidelines .................................... 5-107

7.3 Training Needs Analysis ................................................................ 5-110 7.3.1 Definition ............................................................................ 5-110 7.3.2 Procedures and Process Flow Chart................................. 5-110 7.3.3 Explanatory Notes and Guidelines .................................... 5-111

7.4 Training Planning and Programming ............................................. 5-114 7.4.1 Definition ............................................................................ 5-114 7.4.2 Procedures and Process Flow Chart................................. 5-114 7.4.3 Explanatory Notes and Guidelines .................................... 5-116

TABLE OF CONTENTS viii


PART VI: INTER-MUNICIPAL COOPERATION....................................................... 6-1

1 SPATIAL PLANNING AND DEVELOPMENT ................................................6-2 1.1 Definition .............................................................................................6-2 1.2 Procedures and Process Flow Chart..................................................6-2 1.3 Explanatory Notes and Guidelines .....................................................6-4

2 INFRASTRUCTURE SERVICE DELIVERY...................................................6-6 2.1 Definition .............................................................................................6-6 2.2 Procedures and Process Flow Chart..................................................6-6 2.3 Explanatory Notes and Guidelines .....................................................6-8

3 CROSS MARKETING...................................................................................6-10 3.1 Definition ...........................................................................................6-10 3.2 Procedures and Process Flow Chart................................................6-10 3.3 Explanatory Notes and Guidelines ...................................................6-11

4 CROSS-BOUNDARY LEVERAGING...........................................................6-13 4.1 Definition ...........................................................................................6-13 4.2 Procedures and Process Flow Chart................................................6-13 4.3 Explanatory Notes and Guidelines ...................................................6-15

PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION..................... 7-1

1 PRIVATE SECTOR-INITIATED PRIVATE-SECTOR PARTICIPATION .......7-2 1.1 Definition .............................................................................................7-2 1.2 Process and Procedures ....................................................................7-2 1.3 Explanatory Notes and Guidelines .....................................................7-4

2 GOVERNMENT-INITIATED PRIVATE-SECTOR PARTICIPATION .............7-7 2.1 Definition .............................................................................................7-7 2.2 Process and Procedures ....................................................................7-7 2.3 Explanatory Notes and Guidelines ...................................................7-10

3 COMMUNITY- INITIATED COMMUNITY PARTICIPATION........................7-14 3.1 Definition ...........................................................................................7-14 3.2 Procedures and Process Flow Chart................................................7-14 3.3 Explanatory Notes and Guidelines ...................................................7-16

TABLE OF CONTENTS ix


4 GOVERNMENT-INITIATED COMMUNITY PARTICIPATION.....................7-19 4.1 Definition ...........................................................................................7-19 4.2 Process and Procedures ..................................................................7-19 4.3 Explanatory Notes and Guidelines ...................................................7-21

TABLES OF CONTENTS x

LIST OF FIGURES Figure 3.1 PROCESS FLOW CHART FOR LAUNCHING AND DISSEMINATION

THE HANDBOOK ...............................................................................3-7 Figure 3.2 PROCESS FLOW CHART FOR HANDLING INQUIRIES ...............3-10 Figure 3.3 PROCESS FLOW CHART FOR REVISING AND DEVELOPING THE

HANDBOOK......................................................................................3-12 Figure 4.1 PROCESS FLOW CHART FOR THE ISSUANCE OF BUILDING

PERMIT...............................................................................................4-3 Figure 4.2 PROCESS FLOW CHART FOR THE ISSUANCE OF A BUSINESS

PERMIT...............................................................................................4-7 Figure 4.3 PROCESS FLOW CHART FOR THE ISSUANCE OF SIUJK .........4-12 Figure 4.4 PROCESS FLOW CHART FOR THE ISSUANCE OF ADVERTISING

PERMIT.............................................................................................4-16 Figure 4.5 PROCESS FLOW CHART FOR THE ISSUANCE OF PERMIT FOR

KIOSK USE.......................................................................................4-20 Figure 4.6 PROCESS FLOW CHART FOR THE ISSUANCE OF PUBLIC

TRANSPORTATION FRANCHISE...................................................4-23 Figure 4.7 PROCESS FLOW CHART FOR THE ISSUANCE OF

TRANSPORTATION BUSINESS PERMIT ......................................4-27 Figure 4.8 PROCESS FLOW CHART FOR THE ISSUANCE OF TRADING PERMIT

(SIUP)................................................................................................4-31 Figure 4.9 PROCESS FLOW CHART FOR OBTAINING COMPANY

REGISTRATION (TDP) ....................................................................4-36 Figure 4.10 PROCESS FLOW CHART FOR THE ISSUANCE OF INDUSTRY

REGISTRATION (IUI) AND EXPANSION (IPI) ................................4-40 Figure 4.11 PROCESS FLOW CHART FOR THE ISSUANCE OF LAND-USE

CONVERSION PERMIT ...................................................................4-45 Figure 4.12 PROCESS FLOW CHART FOR THE ISSUANCE OF CIVIL

REGISTRATION CERTIFICATE......................................................4-49 Figure 4.13 PROCESS FLOW CHART FOR OBTAINING JOB SEEKER CARD (AK/I

CARD)...............................................................................................4-54 Figure 4.14 PROCESS FLOW CHART FOR EMPLOYING BLUE-COLLAR

WORKERS OVERSEAS ..................................................................4-57 Figure 4.15 PROCESS FLOW CHART OBTAINING THE PERMIT FOR MAKING

EFFICIENT USE OF WORK EXERCISE FACILITIES (PFLK) ........4-60 Figure 4.16 PROCESS FLOW CHART FOR THE ISSUANCE OF CLASS – C

MINING PERMIT (SIPD/SIPD.PR) ...................................................4-64 Figure 4.17 PROCESS FLOW CHART FOR THE ISSUANCE OF LOCATION

PERMIT.............................................................................................4-69


TABLES OF CONTENTS xi Figure 4.18 PROCESS FLOW CHART FOR THE ISSUANCE OF

NOTIFICATION/CLARIFICATION LETTER OF LAND ACQUISITION OR LAND-USE PLAN .............................................................................4-74

Figure 4.19 PROCESS FLOW CHART FOR OBTAINING WATER SUPPLY SERVICE CONNECTION.................................................................4-78

Figure 5.1 PROCESS FLOW CHART FOR ORGANIZING FOR THE FORMULATION OF THE DEVELOPMENT AGENDA ......................5-4

Figure 5.2 SAMPLE OF FUNCTIONAL ORGANIZATION FOR THE FORMULATION OF DEVELOPMENT AGENDA ..........................................................5-6

Figure 5.3 PROCESS FLOW CHART FOR FORMULATING THE DRAFT DEVELOPMENT AGENDA ................................................................5-7

Figure 5.4 PROCESS FLOW CHART FOR FORMULATING INVESTMENT SELECTION AND PRIORITIZATION CRITERIA.............................5-10

Figure 5.5 PROCESS FLOW CHART FOR CONDUCTING A PUBLIC HEARING AND FINALIZING THE DEVELOPMENT AGENDA ........................5-12

Figure 5.6 FLOW CHART OF LONG-TERM PLANNING .................................5-17 Figure 5.7 PROCESS FLOW CHART FOR PREPARING THE LONG LIST....5-20 Figure 5.8 PROCESS FLOW CHART FOR ASSESSING THE CAPACITY TO

FINANCE THE IMPLEMENTATION OF THE DEVELOPMENT AGENDA ...........................................................................................5-23

Figure 5.9 PROCESS FLOW CHART FOR PREPARING THE SHORT LIST .5-27 Figure 5.10 PROCESS FLOW CHART FOR CONDUCTING PUBLIC HEARING ON

THE SHORT LIST.............................................................................5-29 Figure 5.11 PROCESS FLOW CHART CONDUCTING PRE-FEASIBILITY

ANALYSIS OF INVESTMENT PACKAGES.....................................5-32 Figure 5.12 PROCESS FLOW CHART FOR FINALIZING THE AGENDA.........5-34 Figure 5.13 PHASES OF PROJECT OR PROGRAM IMPLEMENTATION........5-36 Figure 5.14 PROCESS FLOW CHART FOR FEASIBILITY STUDY

PREPARATION ................................................................................5-38 Figure 5.15 FLOW CHART OF DETAILED ENGINEERING DESIGN (DED) ....5-43 Figure 5.16 FLOW CHART OF LAND ACQUISITION FOR PUBLIC FACILITIES

THROUGH AGREEMENT................................................................5-49 Figure 5.17 FLOW CHART OF MATERIALS AND CONSTRUCTION SERVICE

PROCUREMENT THROUGH INTERNATIONAL COMPETITIVE BIDDING ...........................................................................................5-53

Figure 5.18 FLOW CHART OF MECHANISM FOR SUPPLIER AND CONTRACTOR APPOINTMENT THROUGH THE LOCAL COMPETITIVE BIDDING5-59

Figure 5.19 FLOW CHART FOR MATERIAL SUPPLY AND CONTRACTING THROUGH DIRECT APOINTMENT ................................................5-64

Figure 5.20 PROCESS FLOW CHART FOR OPERATION AND MAINTENANCE OF URBAN INFRASTRUCTURE ASSETS............................................5-68


TABLES OF CONTENTS xii Figure 5.21 PROCESS FLOW CHART FOR OPERATION AND MAINTENANCE OF

PDAM................................................................................................5-73 Figure 5.22 PROCESS FLOW CHART FOR WATER TARIFF SETTING .........5-77 Figure 5.23 PROCESS FLOW CHART FOR WATER QUALITY CONTROL.....5-80 Figure 5.24 PARAMETER FOR WATER QUALITY CONTROL .........................5-81 Figure 5.25 PROCESS FLOW CHART FOR SOLID WASTE MANAGEMENT

SERVICE ..........................................................................................5-85 Figure 5.26 PROCESS FLOW CHART FOR THE FORMULATION OF MONITORING

BENCHMARK AND CRITERIA ........................................................5-89 Figure 5.27 DIAGRAM FLOW CHART FOR PROJECT MONITORING AND

REPORTING.....................................................................................5-92 Figure 5.28 PROCESS FLOW CHART FOR PROJECT BENEFIT MONITORING

AND EVALUATION ..........................................................................5-95 Figure 5.29 PROCESS FLOW CHART FOR ORGANIZATION ANALYSIS AND

DESIGN ......................................................................................... 5-100 Figure 5.30 PROCESS FLOW CHART FOR CONDUCTING TRAINING NEEDS

IDENTIFICATION .......................................................................... 5-107 Figure 5.31 PROCESS FLOW CHART FOR CONDUCTING TRAINING NEEDS

ANALYSIS...................................................................................... 5-111 Figure 5.32 PROCESS FLOW CHART FOR TRAINING PLANNING AND

PROGRAMMING ........................................................................... 5-115 Figure 5.33 EXAMPLE OF A HIERARCHY OF COURSES (FOR PROJECT

IMPLEMENTATION)…………………………………………………..5-117 Figure 6.1 PROCESS FLOW CHART FOR INTER-MUNICIPAL COOPERATION IN

SPATIAL PLANNING AND DEVELOPMENT ....................................6-3 Figure 6.2 PROCESS FLOW CHART FOR INFRASTRUCTURE SERVICE

DELIVERY...........................................................................................6-7 Figure 6.3 PROCESS FLOW CHART FOR CROSS MARKETING..................6-11 Figure 6.4 PROCESS FLOW CHART FOR CROSS-BOUNDARY

LEVERAGING...................................................................................6-14

Figure 7.1 PROCESS FLOW CHART FOR PRIVATE SECTOR-INITIATED PRIVATE-SECTOR PARTICIPATION………………………………….7-3

Figure 7.2 PROCESS FLOW CHART FOR GOVERNMENT-INITIATED PRIVATE-SECTOR PARTICIPATION ................................................................7-8

Figure 7.3 DIAGRAM FLOW OF COMMUNITY- INITIATED COMMUNITY PARTICIPATION ..............................................................................7-15

Figure 7.4 PROCESS FLOW CHART FOR COMMUNITY PARTICIPATION INITIATED BY THE GOVERNMENT ...............................................7-20


PART I: INTRODUCTION 1-1


1 PART I: INTRODUCTION

1 BACKGROUND The present Aturan-main of Bantul is part of a set of three practical instruments to mobilize and coordinate stakeholder participation in the preparation and realization of the long-, medium- and short-term development plans of government: • Atlas presents relevant information on the existing conditions and trends, and of the

development potential of Bantul; • Agenda, based on the information provided in the Atlas, translates strategic

development plans into concrete investment priorities of the stakeholders; • Aturan-main (Rules-of-the-game) present guidelines for the effective use of the Atlas

and Agenda in mobilizing and coordinating stakeholder investment.

The preparation and updating of the Atlas, Agenda and Aturan-main of Bantul, also referred to as Triple-A, was conducted through multi-stakeholder task forces, and was supported by funding from the Swiss Agency for Development and Cooperation (SDC), the Cities Alliance and the World Bank. The preparation of the Triple-A of Bantul was coordinated with the simultaneous preparation of similar instruments by the each of the five municipalities of the province of Daerah Istimewa Yogyakarta (DIY), as well as by DIY itself. Besides, a regional Triple-A has been prepared which focuses on regional economic growth and poverty reduction through urban-rural linkages, inter-municipal relationships, and inter-provincial synergies.



2 PURPOSE The Aturan-main of Bantul presents practical guidelines for the preparation, updating and implementation of the Atlas and Agenda. Since these processes depend on effective stakeholder participation, it is essential that the stakeholder trust each other’s intentions and commitment to work together in serving common and mutual interests. The Aturan-main appeal to the sense of ‘good governance’ of government, which include openness, transparency, accountability, public participation and public service delivery. Besides, they appeal to the sense of ‘good citizenship’ of community members, and to the sense of ‘good business conduct’ of the private sector. Thus, the Aturan-main promotes constructive stakeholder interaction within the framework of existing laws, rules and regulations. The Aturan-main comprise the following chapters: • Basic principles for stakeholder interaction, basic principles of decentralization and

local autonomy, and basic principles of inter-municipal cooperation; • Users of the Aturan-main, and its use as a practical handbook for preparation,

updating and implementation of the Triple-A instruments; • Government-based service delivery, including the procedures for issuing licenses

and permits, as well as infrastructure services; • Urban management: strategy formulation, long-term planning, medium-term

programming, implementation, operation & maintenance, monitoring & evaluation; • Inter-government cooperation, including cross-boundary spatial planning,

coordination of infrastructure services, shared infrastructure investments; • Community and private sector participation, including organization of public hearings,

public-private partnership.



3 APPLICATION The Aturan-main of Bantul is a public document that is available as hardcopy and cd-rom. Its practical applications as handbook or guideline are: • Handbook for updating the Atlas and Agenda of Bantul based on changes of the

government-based planning documents (initially Poldas, Propeda and Renstra, and now RPJPD, RPJMD and RKPD), including stakeholder participation and public hearings;

• Handbook for effective use of the Atlas and Agenda in marketing the development

potential to investors, in mobilizing stakeholder funding and in implementation of investments with multi-stakeholder-funding;

• Procedures for issuing of permits and licenses based on transparent steps in

streamlined processes, including time and cost involved; • Guideline for inter-governmental coordination among central-provincial-municipal

levels (vertical relations), between municipalities and between provinces (horizontal relations) in development planning, sharing responsibilities for service delivery and investment.

PART II: UNDERLYING PRINCIPLES 2-1

PART II: UNDERLYING PRINCIPLES 2

1 GENERAL

The underlying principles may be considered as the basic tenets that the Handbook adheres to. They set the broad objectives of the processes and procedures that are included, as well as the ultimate benchmark by which the acceptability of such processes and procedures is judged. The principles are arranged under several themes, as follows: • Good governance • Justice and equity as development objectives • Business ethics and global competitiveness • The roles and responsibilities of private citizens • Local government autonomy • Inter-provincial cooperation. Even so, the Handbook does not harbor the pretension of being unassailable. It may contain basic deficiencies in terms of not totally conforming to the same principles it purports to uphold. Furthermore, it could have incorporated errors in interpretation as these principles are translated into working processes and procedures. Duplication is also common, as principles under a particular theme may constitute merely an elaboration of a principle in another theme. The last caveat is particularly true in relation to good governance, which, in the first place, is the primary objective for which this Handbook has been prepared. It can be said, therefore, that the principles elucidated in the succeeding themes are merely an elaboration of the principles of good governance. Nevertheless, these underlying principles are precisely articulated to verify such adherence, and, if there are questions as to the validity of certain processes and procedures, to serve as the basis for resolving such questions. Also, when conflicts arise among different processes and procedures or in their interpretation and application, it is hoped that reference to these principles can help in finding the most appropriate solutions.



2 GOOD GOVERNANCE

This section of the Handbook has been based mainly on a policy document entitled 'Governance for Sustainable Development' published by the United Nations Development Program (UNDP) in January 1997. The document defines governance 'as the exercise of economic, political and administrative powers that promotes, supports and sustains human development -- especially for the poorest and most marginal.' At the same time, it acknowledges that 'the search for a clearly articulated concept of governance has just begun.' Even so, certain common characteristics of 'good governance' have emerged over time. These same characteristics are adopted here as one set of principles on which the Handbook tries to uphold. These characteristics are as follows: • Rule of law. Legal frameworks should be fair and enforced impartially, particularly the

laws on human rights. • Transparency. Institutions, processes, and information are directly accessible to

those concerned with them, and enough information is provided to understand and monitor such institutions and processes.

• Responsiveness. Institutions and processes serve all stakeholders and serve them

equally well. • Consensus orientation. Good governance mediates differing interests to reach a

broad consensus on what is in the best interest of the group and, where possible, on policies and procedures.

• Equity. All men and women have opportunities to improve or maintain their well

being. • Effectiveness and efficiency. Processes and institutions produce results that meet

needs while making the best use of resources. • Accountability. Decision-makers are accountable to the public, as well as to

institutional stakeholders. • Strategic vision. Leaders and the public have a broad and long-term perspective on

good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which this perspective is grounded.



3 JUSTICE AND EQUITY AS DEVELOPMENT OBJECTIVES Sustained growth, or what might be called the expansion of the “economic pie”, shall remain one of the primary objectives of government as a means of ensuring the well-being of an increasing population. To consider it the underpinning of national development policies, strategies, plans, and programs, however, has in the past been shown to cause the concentration of national wealth, not only in economic but also in social and political terms, in the hands of the few. This, in turn, has spawned the paradox of a nation getting richer while the majority of its people getting more and more inured in poverty. Yet again, this situation has been shown to be untenable in the long run, with the poor ultimately mustering the courage and the number to upend the existing order, often through violence. With the lessons of the recent past, more and more attention needs to be focused on how the “pie” gets divided on the basis of the following principles of justice and equity: • The government shall continue to largely allow the market mechanism to determine

the proper distribution of wealth created by economic activity. • It recognizes, however, that the mechanism is subject to distortions imposed by the

imperfections of the economic environment. • The government shall therefore continue to reserve the right to intervene to abolish

such distortions by way of providing the less economically privileged segments of the population preferential access to economic information and to economic opportunities within the control of the public sector.

• As a complement, under the assumption of ceteris paribus, government services

shall be skewed to favor access by the poor. • Within the legitimate power and resources at its disposal, the government shall

endeavor to promote the economic self-sufficiency of the poor and encourage other segments of the society to do the same.

• Self-sufficiency is taken here to mean the ability to earn income that can support a

living standard above the poverty line through gainful employment and not through government dole-outs and/or subsidies.



4 BUSINESS ETHICS AND GLOBAL COMPETITIVENESS While upholding the principles of economic justice and equity, the government shall promote the development of the private sector by adhering to the following principles: • The role of the state, government or bureaucracy is to provide the environment

conducive for the private sector to flourish, with the assumption that the private sector is the prime mover of economic development.

• In the areas where government intervention in economic development is needed,

such intervention will be transparent and participatory so that the bureaucracy can be held accountable by those who will be affected by its decisions and actions.

• The government shall engage in an economic activity only to demonstrate its viability

and shall withdraw from such activity as soon as the private sector is willing and able to take over.

• With the exception of protecting or promoting the development of the economically

weak segments of the population, the government shall treat all economic players equally under the spirit of free and productive competition and coopetition.

• The government shall however, recognize, protect, and, when appropriate, reward

the business initiative, creativity, and innovation of individuals and entities. • In recognition of the unavoidable forces of globalization, the government, through

persuasion and legislation, shall encourage local individuals and entities to conform to international standards of doing business.

To the avowed business principles of the government, the private sector is expected, in turn, to respond by operating by the following principles: • Success in any business endeavor shall be founded on competitive edge borne out

of efficient and effective operation and sustained through creativity and innovation in adapting to the ever-changing economic circumstances and market preferences.

• Any individual or entity engaged in business has the moral responsibility to expose

and reject collusive practices or any practice that negates fair competition, much more so if he is among the potential beneficiaries of such practices.

• Any individual or entity engaged in business shall abide by the principles and

practices of good corporate governance by, among others, paying adequate attention to the economic welfare as well as the total development of his employees as human beings.

• Any individual or entity engaged in business shall abide by the principles and

practices of good corporate citizenship by, among others, protecting the environment and, in words and in deeds, contributing to the development of the community in which he operates.



5 THE ROLES AND RESPONSIBILITIES OF THE CIVIL SOCIETY The rest of the community shall not remain a disinterested spectator of events but shall be an active participant in the governance of both the state and business enterprises. It is therefore expected to act as a true stakeholder in development in partnership with the government and the private sector. It shall fulfill its roles and responsibilities in accordance with the following principles: • Rules and regulations that govern people’s lives are a mere codification of the

people’s needs and aspirations, which should therefore be clearly expressed in every opportunity in aid of legislation.

• As stakeholders, communities are co-framers and implementors of development

plans and programs. They therefore have both the right and the responsibility to actively participate in all stages of the development process.

• For the foregoing purposes, the conduct of a public hearing is considered part of the

standard operating procedure at every stage of the development process; no decisions shall be taken by the government or the private sector, acting alone or in partnership with one another, with prior adequate consultation with the people who will be most affected by such decisions.

• The division of the fruits of development based on the principles of justice and equity

is as much a responsibility of the intended beneficiaries as that of the government’s. • Community initiatives in development, including the provision of essential public

facilities and services, shall always take into account the broader framework set by the government.

• The community and its individual members have the moral responsibility to expose

and reject corrupt, collusive, and nepotistic practices in the government, much more so if they stand to benefit from such practices.



6 LOCAL GOVERNMENT AUTONOMY A pressing internal challenge for all local government units is how to reorient their operations to conform with the provisions of laws and regulations on local government autonomy. This means the assumption of additional, newly devolved responsibilities, the restructuring of organizations, the operationalization of new systems and procedures, the reshuffling and retraining of existing personnel, and the appropriate placement of new personnel that came along with the decentralized government functions, which have to be accomplished in accordance with the tenets of good governance. Equally important is the external expectations that local governments, more than the provincial and central government levels, should take responsibility over the welfare of their constituencies. To meet the foregoing internal challenge and fulfill the expectations of its constituencies, local governments, as autonomous units, shall operate based on the following principles. • Local governments shall exercise of utmost fiscal discipline, especially in the

allocation of development budget. • They shall encourage private-sector and community-based investments in the

provision of essential public services to fill up the slack in public spending. • They shall commit to the elimination of unnecessary bureaucratic processes to

prevent corrupt, collusive, and nepotistic practices. • Gradual but steady withdrawal of local government in business ventures that can

very well be taken over by the private investors or local cooperatives shall be undertaken.

• To complement the foregoing, a comprehensive program for privatizing existing local

enterprises, as well as business undertakings of government service departments as soon as these become commercially viable, shall be formulated and implemented.

• Local government bureaucracy shall be streamlined while paying due attention to the

standing policy that tenured civil servants cannot be laid off, retaining the best qualified local government personnel, avoiding any economic dislocation among retrenched personnel, and eliminating red tape due to overlapping of functions among local government agencies.

• Local governments shall commit to the continuous improvement of local revenue

sources, by expanding its tax base while dismantling regressive levies that penalize low-income groups and/or serve as disincentive to community and private-sector initiatives.

• City/regency-based government services shall be decentralized to lower levels of the local government apparatus to make these services more accessible to the local population.



7 INTER-MUNICIPAL COOPERATION There is the concern that local government autonomy will engender isolationist tendencies, if not arrogance, among local governments. Healthy competition may degenerate into a “free for all” struggle of one local government against another. There is thus a commonly accepted need to foster stronger inter-municipal cooperation among local governments in DIY under what may be called “win-win” arrangements. There exist real benefits in the economies of scale and scope that can be gained from inter-municipal cooperation, including the provision of costly infrastructure facilities and services that would otherwise be unaffordable to a single local government, avoidance of wasteful duplication of service provision, optimal utilization of resources through complementation, and cross-marketing and mutual promotion of each other’s unique endowments. For ensuring that inter-municipal cooperation results in “win-win” arrangements among local governments and for maximizing the benefits from such arrangements, the following principles shall be observed: • The benefit that a participating government shall derived will always be proportionate

to its contribution, which shall include not only the direct financial outlays but also the socio-economic costs.

• Where one local government forego certain benefits in one venture, the manner and

the extent by which it will be compensated in other ventures shall be clearly established.

• The Joint Secretariat shall serve as the main platform for cooperative endeavors

among local governments in DIY, even in cases where inter-municipal cooperation is just between two local governments.

• It shall also serve as a forum for discussing issues and resolving conflicts among

local governments. • All the decisions of the Joint Secretariat are however understood to be only

recommendatory in nature as they subject to the confirmation/ratification of individual local governments, including their legislative councils.


PART III: USERS AND USES OF THE HANDBOOK 3-1

PART III: USERS AND USES OF THE HANDBOOK 3

1 USERS AND USES OF THE HANDBOOK The rationale for preparing the Handbook has, in many ways, already articulated its uses. Apart from the ideals for which it stands and is trying to achieve, the Handbook is equally meant to have practical, everyday uses, including the following: For all civil servants, the main uses of the Handbook are as follows:

A guide on how to properly handle people’s request for government services • • A reference for general norms of conduct and acceptable behavior. For civil servants occupying structural positions, the Handbook could be used as:

A reference for orienting staff on their jobs and thus a source of information for developing job descriptions

•

•

•

A take-off point for establishing organizational performance targets and for maximizing operational efficiency and effectiveness through work simplification and other cost- and time-saving measures A basis for developing performance criteria and rating the performance of individual staff members.

For the community, the Handbook can serve any of the following purposes:

A benchmark for evaluating the effectiveness of local government administrations • •

•

•

•

A quick reference on government services, as well as on the requirements and attendant costs for availing such services A map for navigating the maze of local government bureaucracy in search of the right agency to respond to one’s needs A tool for self-education on an individual citizen’s rights and responsibilities and for seeking fulfillment of such rights and responsibilities A mechanism for properly directing community development initiatives and for seeking government approval and assistance for such initiatives.

For the local private sector, the Handbook is meant to be as follows:

A source of indication of incentives and constraints, and thus for computing and comparing the benefit and cost, of doing business in a particular location

•

• •

• •

A protection against illegal levies and other hidden costs of doing business A basis for demanding the delivery of public services that are essential for business success A potential source of solutions to conflicts with the government and/or the community An instrument for expediting joint endeavors with the government and/or the community.

Foreign investors are expected to be able to use, and benefit from, the Handbook in the same manner as their local counterparts do. In addition, however, they should be able to derive the following:



An orientation on local customs and value systems • •

•

A basis for negotiating additional incentives in proportion to the additional benefits that the business promises to bring A basis for identifying and surmounting constraints in a manner that conforms local sensibilities.

For international donors, in addition for the foregoing uses, the Handbook is envisioned the following purposes:

A guide for identifying beneficiaries of, as well as local partners for implementing, development projects

•

•

•

•

A platform for securing the commitments of project beneficiaries and implementation partners A reference for establishing implementation mechanisms, including relationships with intended beneficiaries and local partners, that will ensure the achievement of project objectives Or all in all, a basis for project formulation that is suited to local conditions.



2 INSTITUTIONAL ROLES AND RESPONSIBILITIES The Handbook is meant to be regarded as a public property, with the government acting only as its administrator. It should therefore be open to comments, improvements, and revisions by any member of the public. Its application and further development to be effective and meaningful, however, need to be properly orchestrated in the same manner as the delivery of other essential public services. It is thus necessary to define institutional roles and responsibilities for such orchestration so that members of the general public may know to whom they can channel their needs and aspirations and feel confident that these will be properly attended to.

2.1 Governor The objective of standardizing processes and procedures among local governments in DIY places the Governor in very crucial role in ensuring the continuous application and further development of the Handbook. It is only the Governor who has the position, and thus public stature, who can act as the Handbook’s administrator representing all the local governments in DIY within the framework of the laws on local government autonomy. As such, the Governor will assume the following roles and responsibilities:

Endorses the use of the Handbook to the general public of DIY. • •

•

•

• •

• •

Enjoins all provincial and local governments and their agencies to apply the Handbook. Monitors and directs the province-wide application and further development of the Handbook. Establishes and enforces a reward-and-sanction mechanism that will encourage local governments and the general public to apply and develop the Handbook. Acts as the mediator in inter-municipal issues concerning the Handbook. At the provincial level, provides the forum for appeal or recourse for any misapplication of the Handbook or any of its provisions. Promotes and supports the standardization of other local government processes. Promotes the Handbook outside DIY.

2.2 Legislative Councils

The institutional roles and responsibilities of legislative councils concerning the Handbook is considered here as an inherent part of their mandate as duly elected representatives of the people in providing oversight to the operations of the government administration. Also, most of the contents of the Handbook are a mere simplified presentation of existing rules and regulations whose formulation constitutes the core function of any legislative council. In particular, acting as institutions or through their duly designated representatives, the legislative councils at both the provincial and local levels are expected to perform the following roles and responsibilities:

Provide the legal basis for the application and further development of the Handbook or any of its portions.

•

• • •

Gather, synthesize, and advocate public views and opinions on the Handbook. Assist in educating the public on, and promoting the use of, the Handbook. Assist in monitoring the application and further development of the Handbook.



2.3 Mayor/Regent The mayor/regent shall act as the administrator of the Handbook within the local government’s territorial jurisdiction. As such, he performs the same roles and responsibilities as those of the Governor’s only within a limited geographical scope of the city or municipality, as follows:

Endorses the use of the Handbook. • • •

•

•

• •

Enjoins all local government agencies to apply the Handbook. Monitors and directs the city/municipality-wide application and further development of the Handbook. Establishes and enforces a reward-and-sanction mechanism that will encourage local government agencies and the general public to apply and develop the Handbook. Provides the forum for appeal or recourse for any misapplication of the Handbook or any of its provisions. Promotes and supports the standardization of other local government processes. Promotes the Handbook outside DIY.

2.4 Joint Secretariat

The Joint Secretariat has been created to provide the forum and platform for inter-municipal cooperation. It thus performs a pivotal role in the standardization of local government processes and procedures. Its roles and responsibilities are as follows:

Gathers proposal or identifies possibilities for standardizing local government processes and procedures.

•

• •

•

•

Formulates proposed standardized processes and procedures. Secures local government approval for standardized processes and procedures and follows up the promulgation of enabling legislation for their application. Circulates guidelines for the inclusion in the Handbook of approved standardized processes and procedures. Identifies and recommends solutions to inter-municipal issues involving the Handbook.

2.5 Handbook Committee

A Handbook Committee is proposed to be created in the provincial government and in each of the five local governments in DIY. An inter-agency body, the committee will have the basic responsibility of assuming the aforementioned roles and responsibilities of the Governor or mayor/regent on a day-to-day basis. At the provincial level, it is proposed to be composed of the following: Head of the Regional Development Planning Board as Chairman with a representative of the legislative council and heads of Bureau of Organization, Legal Bureau, and Office for Public Information and Communication as members. Similarly, at the local government level, the Head of the Municipal Development Planning Board shall act as Chairman with a representative of the legislative council and the heads of the Organization Division, Legal Division, and Office of Public Information and Communication as members. Aside from performing tasks that are delegated to it by the Governor or the mayor/regent, the committee will also responsible for the following: RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


Monitors the application of the Handbook by concerned provincial and local government agencies.

•

• •

•

•

Identifies processes and procedures that should be included in the Handbook. Handles and, if possible, resolves complaints regarding the misapplication of the Handbook. Handles and responds to requests for the improvement/revision and further development of he Handbook. Advises the head of the provincial and local governments on how to improve the Handbook and make its application more effective.

2.6 Office of Public Information and Communication

At the provincial and local government levels, the Office of Public Information and Communication shall serve as the official link of the government with the public. It is the only agency that shall be authorized to make any official announcement regarding the Handbook. Its main roles and responsibilities are as follows:

Reproduces and disseminates the Handbook. • •

•

•

Answers any inquiries and makes public announcements on any new developments concerning the Handbook. Serves as the conduit between government agencies and the public on matters pertaining to the Handbook. Receives and responds to public comments and suggestions regarding the Handbook.

2.7 Government Agencies Responsible for Public-Service Delivery

The success of the Handbook and its ability to build the necessary credibility as a useful tool will ultimately depend on the individual government agencies responsible for the delivery of essential public services or for making government processes open for public scrutiny and participation. These agencies are therefore expected to fulfill the following roles and responsibilities:

Reorient internal policies as well as realign work procedures, organization, and personnel deployment in accordance with the requirements of the Handbook.

•

•

•

•

Through the Office of the Public Information and Communication, answer inquiries concerning services and/or processes under their responsibility. Continuously search for ways of further improving the delivery of their respective services. Provide inputs to the deliberations of the Handbook Committee and the Joint Secretariat.


PART III: USERS AND USES OF THE HANDBOOK 6

3 GENERAL PROCEDURES The general procedures presented in this section is intended to clarify how those institutional roles responsibilities should be performed and fulfilled. They also show how the roles and responsibilities of different institutions relate to one another.

3.1 Launching and Dissemination

3.1.1 Definition Launching is an event intended to introduce the Handbook to the public. Dissemination, on the other hand, is bringing it in the possession of the public. These, however, are not discrete events, but parts of a series of events that lead or build up to certain culmination points. They also are not ‘one shot’ affairs. As the Handbook is envisioned to undergo continuous improvement, then launching and dissemination need to be undertaken for each new edition that results from the process.

3.1.2 Procedures and Process Flow Chart The tasks comprising the activity are depicted in a process flow in Figure 3.1 and briefly described as follows: Actor Procedure Joint Secretariat 1. Prepares the final draft of the Handbook.

2. Secures approval from each of the local governments.

3. Formally submits the Handbook to the Governor

for approval. Governor 4. Makes a public announcement endorsing the use

of the Handbook.

5. Issues letter of instruction to heads of local governments to apply the Handbook.

Local Government Heads 6. Make public announcement accepting the

Handbook. Joint Secretariat 7. Conducts public launching of the Handbook.

8. Issues to local government official copies of the

approved Handbook together with guidelines for its reproduction and dissemination.



FIGURE 3.1 PROCESS FLOW CHART FOR LAUNCHING AND DISSEMINATION THE HANDBOOK

GOVERNOR HEADS OF LOCAL GOVERNMENT JOINT SECRETARIAT

START

1. Prepares final draft of the Handbook.

2. Secures approval from each local government.

3. Formally submits the Handbook to the Governor.

OFFICE OF PUBLIC INFORMATION ANDCOMMUNICATION

9. Announces where, when and how to obtain Handbook.

4. Makes public announcement endorsing the Handbook.

6. Make public announcements accepting the Handbook.

5. Issues instruction to apply the Handbook.

7. Conducts public launching of the Handbook.

8. Issues copies of approved Handbook.

10. Continues public information and education.


PART III: USERS AND USES OF THE HANDBOOK 3-8 Office of Public Information and Communication 9. Makes public announcement as where, when, and

how to obtain the Handbook.

10. Continues to inform and educate the public about the contents and uses of the Handbook.

3.1.3 Explanatory Notes and Guidelines

Further elaboration of the procedures and some guidelines for undertaking them follow: 1. Prepares the final draft version of the Handbook. For all intents and purposes, the

final draft version could very well be the final version subject only to the approval of concerned local and provincial authorities. The preparation of the draft versions can be delegated by the Joint Secretariat to a technical team or even sub-contracted to an outside party. The preparation of the final draft version then basically means that the Joint Secretariat reviews and corrects the draft version. At this point, the Joint Secretariat can already start creating a ‘buzz’ about the Handbook through press releases or discussions in public fora.

2. Secures approval from each of the local governments. Each member of the Joint

Secretariat will be responsible for presenting the Handbook to and securing the approval of his own local government. Local governments may still propose revisions at this stage, but these can only be integrated in the final draft version if unanimously accepted by the members of the Joint Secretariat. Likewise, each member of the Joint Secretariat will be responsible for explaining to his own local government why certain proposed revisions have not been accepted. The public information campaign on the imminent publication of the Handbook is sustained.

3. Formally submits the Handbook to the Governor for approval. Preferably, the final

draft is handed over by the Joint Secretariat during a courtesy call to the Governor. This event should likewise be given adequate media coverage as part of the continuing public information campaign.

4. Makes a public announcement endorsing the use of the Handbook. On the same

occasion as the Handbook is submitted, the Governor may decide to publicly endorse and approve it. Otherwise, another event, which should similarly be well-publicized, will have to be organized.

5. Issues letter of instruction to heads of local governments to apply the Handbook. On

the same occasion as in step 3 or 4 above, the Governor entrusts the Handbook to the heads of local governments for implementation and further development. An option, which could have a bigger impact, is for the heads of local government to be present during step 3 or 4.

6. Make public announcement accepting the Handbook. Local government heads may

make the public announcement together. Again, for this purpose, the best occasion would be the event in either step 3 or 4. If done individually, however, it should immediately follow the public announcement of the Governor.

7. Conducts public launching of the Handbook. This is optional, as any of the preceding

events could already have served the purpose of a book launching. It will however have the advantage of generating considerable additional publicity and enhance the



stature of the Handbook, especially if not only local and provincial, but prominent national figures grace the event.

8. Issues to local governments official copies of the approved Handbook together with

guidelines for its reproduction and dissemination. This is suggested to be done immediately after step 4. The guidelines would basically contain printing specifications, if each local government will have to reproduce the Handbook on its own, as well as initial distribution, such as to local government offices and other public sources of information.

9. Makes public announcement as where, when, and how to obtain the Handbook.

Intended for the general public, the announcement should explain how one can obtain the Handbook, with a specific address and telephone number and preferably with the name of a person to be contacted. If the Handbook is to be sold, a price should also be quoted.

10. Continues to inform and educate the public about the contents and uses of the

Handbook. This can be done both through the mass media or through community gatherings. At this point, testimonies of people who have used the Handbook and/or have benefited from it should be highlighted. Plans for the future development of the handbook may also be outlined.

3.2 Inquiries

3.2.1 Definition

Inquiries regarding the Handbook can range from the simplest, like how to find certain subject matters covered by the Handbook, to the most complex as, for example, a question on the validity of some of the underlying policies. They can also come in various forms: verbally, through letters or statements in the mass media. In whatever level of complexity and form they come, all inquiries need to be answered and answered fast. In the procedures that follow, the inquiring party is simply designated as the ‘public’, which could be a single person, an informal grouping of several persons, or an institution. No distinction is also made as to the person’s or group’s affiliations, as the presumption is that anybody can make an inquiry about the Handbook, even those entrusted with its implementation and development.

3.2.2 Procedures and Process Flow Chart The procedures for handling inquiries are graphically depicted in Figure 3.2 and briefly described as follows: Actor Procedure Office of Public Information and Communication 1. Announces publicly how the inquiries regarding

the Handbook can be made. Public 2. Submits inquiries. Office of Public Information


and Communication 3. Receives inquiries.


4. Answers inquiries.

5. Refers inquiries to other government agencies or to the Handbook Committee.

Other Government Agencies/Handbook Committee 6. Answers inquiries.

FIGURE 3.2 PROCESS FLOW CHART FOR HANDLING INQUIRIES

PUBLICOFFICE OF PUBLIC

INFORMATIONANDCOMMUNICATION


2. Submits inquiries. 1. Announces how inquiries can be made.

3. Receives inquiries.

OTHER GOVERNMENTAGENCIES/HANDBOOOK

COMMITTEE


5. Refers inquiries to other government agencies/ Handbook Committee

3.2.3 Explanatory Notes and Guidelines Further elaboration of the procedures and some guidelines for undertaking them follow: 1. Announces publicly how the inquiries regarding the Handbook can be made. This

can be made in conjunction and simultaneously with the announcement on how to secure the Handbook. Similarly, the address or phone numbers and preferably the person who will receive the inquiries are identified in the announcement.

2. Submits inquiries. As mentioned, this may be done orally, through a letter, or

indirectly through statements in the mass media, including letters to the editor or phoned-in comments to radio/television programs.

3. Receives inquiries. With the variety of channels that are available to the public to

express its views and opinions, it may not be possible to properly monitor and receive all inquiries regarding the Handbook. The staff of the Office of Public Information and Communication, however, are expected to do their utmost to catch as many as possible. Receipt of inquiries should be properly recorded.

4. Answers inquiries. At least all inquiries that were received directly, verbally or through

letters, should be answered if possible within 48 hours. This is not taken to mean that RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


all answers should be satisfactory. It could be just a matter of “We are still searching for the answer” or “We have referred your inquiry to the concerned person or department”. But answers like these should be followed up, and the inquiring party given an answer as to when a satisfactory answer will be made available. Likewise, answers should be properly recorded.

5. Refers inquiries to other government agencies or to the Handbook Committee. As

already indicated, certain inquiries may be beyond the organizational mandate and/or competence of the Office of Public Information and Communication to answer. In these cases, inquiries that concern the delivery of public service should be referred to the concerned service department. Those that concern the underlying policies of he Handbook or those which may require changes in standardized processes and procedures should be referred to the Handbook Committee.

6. Answers inquiries. The concerned service department or the Handbook Committee

may opt either to send its answer to the inquiring party or channel it through the Office of Public Information and Communication. Inquiries involving changes in standardized procedures are taken up in the succeeding process.

3.3 Revision and Development of the Handbook

3.3.1 Definition

Revision here is to taken to mean any change in processes and procedures that are already included in the Handbook. Development, on the other hand, is the inclusion of additional processes and procedures. Both could come internally, generated by local government agencies, or externally based on proposals from members of the general public. Revisions and further development may be called for by new laws and regulations or changes in local conditions.

3.3.2 Procedures and Process Flow Chart The procedures for revising and further developing the Handbook are graphically depicted in Figure 3.3 and enumerated as follows: Actor Procedure Office of Public Information and Communication 1. Receives proposals for revisions/further

development of the Handbook.

2. Performs preliminary screening of proposals.

3. Submits screened proposals to the Handbook Committee.

Handbook Committee 4. Selects worthy proposals.

5. Formulates draft revision.

6. Develops new process.



FIGURE 3.3 PROCESS FLOW CHART FOR REVISING AND DEVELOPING THE HANDBOOK MAYOR/REGENT OR

LEGISLATIVE COUNCIL JOINT SECRETARIAT HANDBOOK COMMITTEE

4. Selecs worthy proposals.

5. Formulates draft revision.

6. Develops new process.

OFFICE OF PUBLIC INFORMATIONAND COMMUNICATION

1. Receives proposals.11. Enacts the necessary legal basis. 8. Deliberates on the proposal and makes appropriate decision.

2. Performs preliminary screening of proposals.

3. Submits screened proposals.

12. Includes the revised or new process in the Handbook.

13. Informs concerned local government agencies of the inclusion.

7. Submits proposals for revision/ new process.

9. Informs the Handbook Committees of its decision.

10. Prepares the draft legal basis for revised or new process/ procedures.

14. Informs the public of the inclusion.



7. Submits proposal for revision/new process to the Joint Secretariat.

Joint Secretariat 8. Deliberates on and makes the appropriate

decision.

9. Informs the Handbook Committees of its decision. Handbook Committee 10. Prepares the draft legal basis for revised or new

processes and procedures. Mayor/Regent/ Legislative Council 11. Enacts the necessary legal basis. Office of Public Information and Communication 12. Includes the revision or new processes and

procedures into the Handbook.

13. Informs concerned local government agencies about the inclusion.

14. Informs the general public about the inclusion.


Further elaboration of the procedures and some guidelines for undertaking them follow: 1. Receives proposals for revisions/further development of the Handbook. Formal

proposals are not be expected here, but rather just indications of what the public wants the Handbook to be and what they want to see in it. As already mentioned, one source of proposals for would be the documentation of inquiries and comments that is supposed to be prepared and continuously updated. Formal proposals may still be received, not the least from government agencies who are responsible for service delivery but whose processes are not yet included in the Handbook. It is thus suggested that officials and staff of the Office of Public Information and Communication should, in every opportunity, solicit comments and suggestions on how to further improve and develop the Handbook.

2. Performs preliminary screening of proposals. No set of screening criteria is proposed

here. The fundamental guideline is just to refer to the framework and the underlying principles in identifying those proposals that should be taken up further.

3. Submits screened proposals to the Handbook Committee. The basic guideline is:

when in doubt, just include the proposal. 4. Selects worthy proposals. Again, no definite criteria are proposed here. The selection

is entirely left to the members of the committee, basing their judgment on the needs of the local government and its constituencies. Another consideration is how well a certain proposal will be received and acted upon by the other local governments in view of the desire to standardize government processes within the province.

5. Formulates draft revision. As mentioned, a revision pertains to changes in processes

and procedures already included in the Handbook. In accomplishing this task, the RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


committee is advised to consult with other local government agencies as well as private-sector and community interest groups.

6. Develops new process. In accomplishing this task, the committee should likewise

invite in its deliberations appropriate resources persons, including other government officials and community and private-sector representatives. Especially if the new process pertains to a government service, then the inclusion of officials and staff of the agency responsible for delivering such service is a must.

7. Submits proposal for revision/new process to the Joint Secretariat. The proposal for

revision or the inclusion of a new process is then submitted to the Joint Secretariat. 8. Deliberates on and makes the appropriate decision. During the discussion of the

proposal, it is also suggested that the Joint Secretariat avail of the advice, comments, and suggestions of resource persons representing a wide spectrum of interests. The proposal may be approved as submitted or with further changes agreed upon by the Joint Secretariat. Alternatively, it may be disapproved.

9. Informs the Handbook Committees of its decision. Approved proposals should be

communicated to all local governments through their respective Handbook Committees together with the documentation of the revised or new process/procedure. Disapproved proposals should be returned to the proponent citing the arguments on which the decision was based.

10. Prepares the draft legal basis for revised or new processes and procedures. The

legal basis has to be provided by each local government. 11. Enacts the necessary legal basis. Based on the draft enabling legislation submitted

by the Handbook Committee, signs the decree (Mayor/Regent) or enacts a local ordinance/regulation (Legislative Council).

12. Includes the revision or new processes and procedures into the Handbook. The

Handbook is then revised. If substantial revisions or new processes are to be included, the printing of a new edition might be warranted.

13. Informs concerned local government agencies about the inclusion. It is highly

possible that concerned local government agencies have already been informed of the changes through the circulation of the enabling legislation. It is suggested, however, that a double-check be made, as it may cause problems if the public would demand services following the revised or new procedures and the concerned government agencies are still unaware of them, much less ready to implement them.

14. Informs the general public about the inclusion. The revised or new

process/procedure should be made available as soon as the announcement is made. Later they can include in a new edition of the Handbook. If a new edition is printed, it might be worth considering another high-profile launching ceremony, again for the wide public awareness that it can generate.


PART IV: GOVERNMENT SERVICE DELIVERY 4-1

PART IV: GOVERNMENT SERVICE DELIVERY 4 Delivery of public service is one of the ways that show true local government autonomy. It is one of the most concrete manifestations of the government's presence, being an occasion when citizens come into direct contact with the government administration they have elected into office. In many ways, the manner in which public service is delivered concretizes the application of, or lack there of the principles of good governance. The efficient and effective delivery of public service is therefore not a matter of choice, but an imperative for all local governments. In this day and age of local government autonomy, wherein local governments are fully responsible for the welfare their constituents, this becomes even more so as local governments can no longer pass the responsibility or the blame to higher levels of government. As mentioned, the inclusion of various public services in the Handbook is a part of the effort to make them more accessible to the public. More than a mere codification of those services, however, part of the preparation of the Handbook is the streamlining and simplification of the processes and procedures involved in the delivery of those services. Moreover, it is hoped that their presentation in the Handbook could trigger further improvements as the public becomes more familiar with the processes and procedures and, thereafter, proposes measures to make them even more effective and efficient. This edition of the Handbook does not include all the services rendered by local governments. It has limited itself to those that contribute significantly to local revenues and/or are most often used by the public. It is anticipated, however, that future editions will be able to cover more and more services. The coverage of the Handbook is therefore limited to the following: 1. Building Permit 2. Business Permit 3. Construction Service Business Permit 4. Advertising Permit 5. Permit for Kiosk and Stall Use 6. Public Transportation Franchise 7. Transportation Service Business Permit 8. Trading Permit (SIUP) 9. Company Registration (TDI) 10. Industry Registration (IUI) and Expansion (IPI) 11. Land-Use Conversion Permit 12. Issuance of Civil Registration Certificate 13. Job Seeker Card Issuance 14. Permit for Employing Blue-Collar Workers Overseas 15. Permit for Making Efficient Use of Work Training Facilities 16. Permit for Class-C Mining 17. Location Permit 18. Notification / Clarification Letter Of Land Acquisition Or Land-Use Plan 19. Water Supply Connection These services (1 – 12) mentioned above are requested and delivered through UPTSA (Unit Pelayanan Terpadu Satu Atap – One-Stop Service Unit). RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


1 BUILDING PERMIT (IMB)

1.1 Definition Building, based on the local Regulation of Bantul Regency No. 10/1996 on Building Permit (IMB), is a roofed and walled structure built for a dwelling. Building Permit is needed for constructing, modifying/repairing, and/or demolishing a house or a building. The permit is issued by the Department of Public Works of Bantul Regency. The legal bases for IMB issuance are the Local Regulation of Bantul Regency No. 10/1996, the Decree of the Regent No 442/B/Kep/Bt/1997 on Guidelines on the Implementation of Perda (Local Regulation) No. 10/1996, and the Decree of the Regent No. 379/2001 on the Amendment of the Decree of the Regent No. 442/B/Kep/Bt/1997. The cost of obtaining the permit depends on the value of the structure to be constructed, and sample computation of the cost is presented in Annex A.

1.2 Procedures and Process Flow Chart The process involved in obtaining the issuance of building permit is graphically shown in Figure 4.1. The procedures are briefly described as follows:

Actor Procedure Applicant 1. Obtains, fills out, and submits an application

form.

UPTSA Staff 2. Accepts the application form, inspects for completeness and prepares the invitation for field inspection.

Head of Permit Issuance Sub-Department

3. Accepts the application document and invites the field inception team.

Field Inspection Team 4. Conducts the field inspection.

5. Prepares an official report on the results of the field inspection, and computes the permit fee.

Head of Permit Issuance Sub-Department

6. Conducts a consultation and re-inspects the completeness of the application document.

Head of Public Works Department

7. Signs the permit or letter of disapproval.

UPTSA Staff 8. Obtains the signed permits or disapproval letters.

Applicant 9. Pays for and receives the permit or receives

the letter of disapproval. RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


FIGURE 4.1 PROCESS FLOW CHART FOR THE ISSUANCE OF BUILDING PERMIT

DEPARTMENT OF PUBLIC WORKS APPLICANT

UPTSA STAFF

Field Inspection Team Head of Permit Issuance Sub-Department Department Head

START DAY 8/10 DAY 2/3 DAY 1 2. Accepts the application

form, inspects for completeness, and prepares the invitation for field inspection.

1. Obtains, fills out andsubmits an applicationform.

3. Accepts the application document and invites the field inspection team.


DAY 4 - 7

DAY 12 DAY 11

9. Pays for and receives thepermit or receives theletter of disapproval.

8. Everyday obtains the signed permits.

4. Conducts the fieldinspection.

DAY-7

DAY 8 6. Conducts a consultation

and once again inspectsthe completeness of theapplication document.

5. Prepares an official report on the results of the field inspection, and computes the permit fee.



1.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the foregoing procedures are as follows: 1. Obtains, fills out and submits an application form. After obtaining the application

form from the UPTSA, the applicant then fills it out. Aside from filling out the form, the Applicant is also required to attach the following: a. Construction drawing, scale 1:100 or 1:200. b. Location map, scale 1:200, 1:500 or 1:1000. c. Copy of permit for land-use conversion (for former agricultural land). d. Copy of sonding certificate for storied buildings and calculation of the building

construction. e. Copy of the identification cards of the Applicant, landholder, building drawer,

and the construction engineer. f. A statement letter of willingness to construct a percolating well. g. Letter of agreement by immediate neighbors certified by the Village and Sub-

District Heads. h. Recommendation letter from Bappeda.

For the building that has been constructed and it does not conform to the application, the Applicant should make a statement letter saying that he is willing to demolish the illegal part of the building, and when this will be done should be stated clearly.

For the building where the access road is across over a canal or river, the Applicant should get a permit from the institution concerned to cover the canal or river.

The application form / document should be in triplicate: a. One document for Bappeda b. One document for Public Works Department, and c. The other one for the Applicant.

2. Accepts the application form, inspects the completeness and prepares the

invitation for field inspection. The UPTSA staff does the followings: a. Receives the application form. b. Inspects the completeness of the application and its supporting documents. c. Returns the incomplete or improperly accomplished application form to the

Applicant and provides him with a list of revisions/additions that need to be made.

d. For each application that is accepted, provides the Applicant with an official acknowledgment of acceptance.

In addition, the UPTSA Staff prepares the invitation letter for field inspection, and submits it to the Head of Permit Issuance Sub-Department, Department of Public Works.

3. Accepts the application document and invites the field inspection team. Soon

after accepting the application document from UPTSA Staff concerned, the Head of Permit Issuance Sub-Department invites the field inspection team to conduct a field inspection.


PART IV: GOVERNMENT SERVICE DELIVERY 4-5 4. Conduct the field inspection. The field inspection is conducted by the Building

Section, Sub-Department of Human Settlement. For certain cases, however, the members of Field Inspection Team from Law Division, Government Administration Division, Department of Public Works, BPN (National land Agency) and from the police office may be invited. The invitation letter gives the mandate fo the Field Inspection Team to conduct field inspection and measurement.

One of the purposes of the inspection is to verify the data and information included in the application form and its supporting documents. More importantly, the inspection is meant to ensure that the proposed construction conforms to existing criteria and guidelines related to the following: a. Urban plan b. Public welfare c. Public order and safety d. Environmental conservation/protection e. Equal protection of third-party interests f. Other existing rules and regulations.

5. Prepares and submits a report on the results of the field inspection and prepares

a draft permit or letter of disapproval. The report consists principally of a summary of findings and a recommendation as to whether the application should be approved or disapproved. Disapproval is recommended if the proposed construction project violates any of the aforementioned criteria and guidelines. In certain cases, however, the team may recommend adjustments in the application form and/or any of its supporting documents rather than outright disapproval. After that the draft permit or letter of disapproval is prepared, and computes the fee to be paid for the building permit.

6. Conducts a consultation and once again inspects the completeness of the

application document. Soon after accepting the field inspection report, the Head of Permit Issuance Sub-Department inspects the completeness of the application document and then conducts a coordination meeting with the field inspection team to give further inputs and recommendations to the Department Head.

7. Signs the permit or the letter of disapproval. Based on the field inspection report,

the Head of Public Works Department then signs the permit or the letter of disapproval as soon as this is received.

8. Everyday, obtains the signed permits and letters of disapproval from the office of

Department Head. Upon receipt of the signed permit or letter of disapproval, the concerned UPTSA staff duly informs the Applicant. In case of an approved application, the Applicant is likewise informed of the amount that has to be paid.

9. Pays for and receives the permit or receives the letter of disapproval. On the

basis of the information given by the concerned UPTSA Staff, the Applicant pays for and receives the permit or the letter of disapproval.



2 Business Permit (HO)

2.1 Definition Business Permit is an official permission to an individual or an institution (a legal personality) to put up or conduct business in a particular location that might cause any hazard, losses and disruptions, excluding those that have been earmarked by the Central Government or Local Government According to the Local Regulation No 15/2001, the agency authorized to process and issue the Business Permit is the Board of Environmental Impact Control. The process of issuing the permit takes twelve (12) working days, assuming that the completely accomplished document has been accepted. The temporary business permit is effective within a maximum period of 1 year, while the permanent business permit, 5 years. Not more than 1 month before the permit expires the applicant is required to renew it. The amount paid for a Business Permit is computed on the basis of the following indexes: a. Environment b. Location c. Size of Disruptions that will be caused by the establishment and operation of the

business

An example of how the fee is computed is presented in Annex B.

2.2 Procedures and Process Flow Chart The procedure for obtaining a Business Permit is graphically presented in Figure 4.2 and enumerated briefly as follows:

Actor Procedure Applicant

1. Obtains, fills out, and submits an application form.

UPTSA Staff 2. Inspects the completeness and accepts the application form, and prepares invitation for field inspection.

Head of Licensing Section

3. Receives the application document and invites the Field Inspection Team.

Field Inspection Team 4. Conducts the field inspection. 5. Prepares an Official Report, a draft permit,

or a letter of disapproval and computes the permit fee.

Head of Licensing Section

6. Conducts consultation and re-inspects the application document.



FIGURE 4.2 PROCESS FLOW CHART FOR THE ISSUANCE OF A BUSINESS PERMIT

UPTSA STAFFFIELD INSPECTION TEAM HEAD OF LICENSING SECTION


2. Inspects the completeness and accepts the application form, and prepares invitation for field inspection.


4. Conducts the field inspection.

APPLICANTDEPARTMENT HEAD

8. Obtains the signed permit or letter of disapproval.

BOARD OF ENVIRONMENTAL IMPACT CONTROL


5. Prepares an Official Report, a draft permit, or a letter of disapproval and computes the permit fee.

7. Approves and signs with initials the permit or letter of disapproval.

9. Pays for and receives the permit or receives the letter of disapproval of the application.


PART IV: GOVERNMENT SERVICE DELIVERY 4-8 Head of the Board of Environmental Impact Control

7. Approves and signs with initials the permit or letter of disapproval.

UPTSA Staff 8. Obtains the signed permit or letter of disapproval

Applicant 9. Pays for and receives the permit or

receives the letter of disapproval of the application.

2.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the foregoing procedures are as follows: 1. Obtain, fill out, and submit an application form. The application form should be

certified by the Village and Sub-District Heads. Aside from filling out the application form, the applicant is required to attach the following: a. Photocopy of Applicant’s identification card (1 sheet) b. 4 passport photos (3x4) c. Photocopy of Article of Business Incorporation d. Photocopy of letter stating the land ownership e. Photocopy of Building Permit (IMB) f. Business Location Map Location (site plan) certified by the Village and Sub-

district Heads (double) g. Approval of immediate neighbors certified by the Village and District heads

and endorsed by the overseeing local government agency (double) h. Documents of AMDAL, UKL, UPL or SPPL (Environmental Impact

Assessments) for certain business that are required

The application form/document should be in triplicate: a. One document for Bappedal (Board of Environmental Impact Control) b. One document for Public Works Department, and c. The other one for the Applicant.

2. Inspect the completeness and accept the application form, and prepare invitation

for field inspection. In brief, the concerned staff of UPSTA does the following: a. Receive the application form. b. Inspect the completeness of the application and its supporting documents. c. Return incomplete or improperly accomplished application forms to the

Applicant and provide him with a list of revisions/additions that need to be made.

d. For each application that is accepted, provide the Applicant with an official acknowledgment of acceptance.

Then, the UPTSA staff concerned arranges the field inspection schedule and prepares an invitation and submits it to the Head of Licensing Section, Board of Environmental Impact Control, Bantul Regency.


PART IV: GOVERNMENT SERVICE DELIVERY 4-9 3. Receive the application document and invite the Field Inspection Team. After

receiving the application form from UPTSA, the Head of PPKL Section then invites the Field Inspection Team for field inspection. The Team consists of the representatives of Board of Environmental Impact Control, Local Development and Planning Board, Health Department, Department of Public Works, as well as Agriculture and Husbandry Department.

4. Conduct the field inspection. It is conducted by the Field Inspection Team;

however, in certain cases, if a business is operated illegally and the owner has been notified three times to apply for the business permit but he is still delinquent, the relevant institutions (Law Division, Public Works Department, Local Office of Land Agency and Local Police force) might therefore be involved. The invitation can at the same time serve as a mandate to conduct a field inspection.

In addition to verify the data and information included in the application form and its supporting documents, the inspection is meant to ensure that the proposed location and type of business to be established conform to existing criteria and guidelines related to the following: a. Urban plan b. Public welfare c. Public order and safety d. Environmental conservation/protection e. Equal protection of third-party interests f. Other existing rules and regulations.

5. Prepare an Official Report, a draft permit or a letter of disapproval, and computes

the permit fee. After conducting a field inspection, the Field Inspection Team prepares an Official Report consisting principally of a summary of findings and a recommendation as to whether the application should be approved or disapproved. Disapproval is recommended if the proposed business violates any of the aforementioned criteria and guidelines. The Team then prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the Applicant, and finally submits all the relevant documents to the Head of Licensing Section, Board of Environmental Impact Control.

6. Conduct coordination and re-inspect the application document. After receiving the

application document from the Field Inspection Team, the Head Licensing Section re-inspects it and conducts coordination/consultation with the Field Inspection Team to give advanced recommendation to the Head of Board of Environmental Impact Control as to the application already submitted.

7. Sign the permit or the letter of disapproval. The Local Government Secretary

signs the permit or the letter of disapproval already signed with initials by the Head of Board of Environmental Impact Control.

8. Obtain the signed permits and letters of disapproval. Every day, the concerned

UPTSA Staff obtains the permits or letters of disapproval already signed by the Local Government Secretary and then duly informs the Applicant. In case of an approved application, the Applicant is likewise informed of the amount that has to be paid, or that his application is disapproved due to be in contradiction to the existing criteria and guidelines.


PART IV: GOVERNMENT SERVICE DELIVERY 4-10 9. Pays for and receives the permit or receives the letter of disapproval. On the

basis of the information given by the concerned UPTSA Staff, the Applicant pays for and receives the permit or the letter of disapproval.



3 CONSTRUCTION SERVICE BUSINESS PERMIT 3.1 Definition

Construction Service Business Permit (SIUJK) is granted to individuals or institutions to run a construction service business. SIUJK is issued by the Head of Bantul Regency and is effective for a maximum period of three years, after which it has to be renewed. The permit can be obtained through UPTSA Kabupaten Bantul located at Jalan Robert Wolter Monginsidi Kompleks Parasamya Bantul, with telephone number (0274) 368343. The legal basis for the issuance of this permit is Perda (Local Regulation) Kabupaten Bantul No. 29/2002. The process for issuing the permit takes one month after the complete accomplished application form is submitted. The computation of the fee to be paid for this permit is shown in Annex C.

3.2 Procedure and Process Flow Chart

The process flow chart for obtaining SIUJK is graphically presented in Figure 4.3 and the procedures are briefly described as follows:


1. Obtains, fills out and submits an application

form.

UPTSA Staff 2. Inspects the completeness of and accepts the application form.

IUJK Team 3. Inspects and assesses the application

document. 4. Reports the result of the assessment on the

application document.

Regent 5. Approves or disapproves the application.

UPTSA Staff 6. Obtains the signed permit or letter of disapproval.

Applicant 7. Pays for and receives the permit or receives

the letter of disapproval.



FIGURE 4.3 PROCESS FLOW CHART FOR THE ISSUANCE OF SIUJK

APPLICANT UPTSA STAFF IUJK TEAM REGENT

1. Obtains, fills out and submits an application form.

2. Inspects the completeness of and accepts the application form.

3. Inspects the application document.

5. Approves or disapproves the application.


4. Reports the result of the assessment on the application document.

7. Pays for and receives the permit or receives the letter of disapproval.



3.3 Explanatory Notes and Guidelines 1. Obtains, fills out and submits an application form. The Applicant (business entity)

obtains an application form (SPI) in UPTSA and pays Rp 25’000.- for it. The application form should be signed by the business entity manager, and the following should be filled out: a. The data of the business entity b. The data of the business entity owner c. The data of the business entity personnel d. The equipment owned by the business entity e. The experience of the business entity. Aside from filling out the application form, the Applicant is required to attach the following supporting documents: a. A letter stating the validity of the foregoing data with a documentary stamp of

Rp 6’000 b. A statement letter from the one technically responsible for the business entity

with a documentary stamp of Rp 6’000. c. A statement letter from the experts involved in the business entity with a

documentary stamp of Rp 6’000.. d. Photocopy of Business Certificate e. Photocopy of Company’s article of incorporation f. Photocopy of Company Registration g. Photocopy of Business Permit h. Photocopy of Applicant tax identification number (NPWP) i. Photocopy of KADIN (the Chamber of Commerce and Industry) membership

certification j. Two photos (2x3) of the company manager.

The completely accomplished application form is then submitted to the UPTSA Bantul Regency.

2. Inspects the completeness of and accepts the application form. In brief, the

concerned staff of UPSTA does the following: a. Receive the application form. b. Inspect the completeness of the application and its supporting documents. c. Return incomplete or improperly accomplished application form to the



3. Inspects and assesses the application document. Soon after receiving the

application document from UPTSA staff, the inspection team inspects and assesses the application form and its supporting documents. If necessary, the team can conduct a field survey. The team consists of the representatives from the implementing agencies, associations and other related institutions. The team then prepares a official report on the results of the assessment.

4. Reports the result of the assessment on the application document. The report on

the results of the assessment is then submitted to the Regent for his approval or disapproval.


PART IV: GOVERNMENT SERVICE DELIVERY 4-14 5. Approves or disapproves the application. Based on the results of the assessment

provided by the team, the Regent then prepares a permit or letter of disapproval. The original permit/letter is sent to UPTSA and the copy to the related institutions/associations.

6. Obtains the signed permit or letter of disapproval. The UPTSA Staff concerned

everyday obtains from the Regent’s office the permits or letter of disapproval, and informs the Applicant of the status of his application and the amount of fee to be paid.

7. Pays for and receives the permit or receives the letter of disapproval. Based on

the notification from the UPTSA Staff, the Applicant then pays for and receives a permit (SIUJK) or receives a letter of disapproval.

The fee to be paid by the Applicant for the permit is classified as follows: a. Qualification K2 : Rp 150’000.- b. Qualification K1 : Rp 250’000.- c. Medium-sized business entity : Rp 500’000.- d. Big-sized business entity : Rp 2’000’000.- e. Small-sized business entity : Rp 250’000.- f. Fee for changing the permit is 50% of the new fee classification.

The permit should be obtained by the Applicant not later than one month after the notification letter is sent to the Applicant, or otherwise the permit will be revoked.



4 ADVERTISING PERMIT

4.1 Definition The advertising permit authorizes a person or institution to put up an advertisement at certain place for a given period of time. The permit is issued by the Local Revenue Office (Dinas Pendapatan Daerah / Dipenda) on behalf of the Regent of Bantul Regency. The legal basis for issuing the permit is the Decree of Bantul Regency No. 11/Kep.KDH/2000. The permit can be processed within eleven working days and is effective for a maximum period of one year, after which it has to be renewed. The computation of the advertisement tax is based on the cost, length, strategic value and location of the advertisement to be put. A sample computation of the fee is presented in Annex D.

4.2 Procedures and Process Flow Chart

The process involved in obtaining an Advertising Permit is graphically shown in Figure 4.4. The procedures are briefly described as follows:



UPTSA Staff 2. Inspects the completeness and accepts the application form, and prepares an invitation for field inspection.

Sub-Department of Data Collection and Tax Setting

3. Invites related institutions (Field Inspection Team) to conduct a field inspection.

Field Inspection Team 4. Conducts a field inspection. 5. Prepares an Official Report, a draft permit, or a

letter of disapproval and computes the permit fee


6. Prepares and submits a report on the results of the field inspection.

Head of Dipenda

7. Signs the permit or the letter of disapproval

UPTSA Staff 8. Everyday, obtains the signed permits and letters of disapproval.

Applicant

9. Pays for the tax and receives the permit or letter

of disapproval. RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


FIGURE 4.4 PROCESS FLOW CHART FOR THE ISSUANCE OF ADVERTISING PERMIT

UPTSA STAFFFIELD INSPECTION TEAM SUB-DEPARTMENT OF DATA

COLLECTION AND TAX SETTING

3. Invites related institutions (Field Inspection Team) to conduct a field inspection).



4. Conducts the field inspection.

APPLICANTOFFICE/UNIT HEAD

8. Everyday, obtains the signed permits and letters of disapproval.

DIPENDA (LOCAL GOVERNMENT REVENUE OFFICE/DEPARTMENT)

6. Prepares and submits a report on the results of the field inspection.


7. Signs the permit or the letter of disapproval.

9. Pays for the tax and receives the permit or letter of disapproval.



4.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the foregoing procedures are as follows:

1. Obtains, fills out, and submits an application form. Aside from filling out the form,

the Applicant is also required to attach the following: a Location map of the advertisement b Front and side view illustrations of the advertisement with corresponding

measurements c Construction drawings, if construction will have to be undertaken d A photograph of the proposed location e Lease contract or letter of permission from the owner of the land and/or

building f A letter from the permit holder stating that he will be responsible for any

impacts resulted from the advertisement installed. 2. Inspects the completeness and accepts the application form, and submits it to the

Dipenda. In brief, the concerned staff of UPTSA does the following: a Receives the application form. b Inspects the completeness of the application and its supporting documents. c Returns incomplete or improperly completed application form to the Applicant

and provides him with a list of revisions/additions that need to be made. d For each application that is accepted, provides the Applicant with an official

acknowledgment of acceptance. 3. Invites related institutions (Field Inspection Team) to conduct a field inspection.

The Field Inspection Team consists of the representatives from Public Works Department, Police Force, Transportation Department, Office of Public Order and Security, Division of Legal Affairs, and Division of Government Administration.

4. Conducts the field inspection. One of the purposes of the inspection is to verify

the data and information included in the application form and its supporting documents. The inspection is also meant to ensure that the proposed advertisement does not affect the following: Traffic flow b. Other advertisements c. Road users/drivers d. Public ethics e. Aesthetic sense f. Tourism aspect In addition, anyone is not allowed to put any advertisement on the advertisement site without approval from the Regent.

5. Prepares and submits an Official Report report on the results of the field inspection. The report consists principally of a summary of findings and a recommendation as to whether the application should be approved or disapproved. Disapproval is recommended if the proposed advertisement violates any of the aforementioned criteria and guidelines. In certain cases, however, the team may recommend adjustments in the application form and/or any of its supporting documents rather than outright disapproval.


PART IV: GOVERNMENT SERVICE DELIVERY 4-18 6. Conduct consultation/coordination and re-inspect the application document. After

receiving the application document from the Field Inspection Team, the Head of City Planning, Sub-Department of Human Settlement re-inspects it and conducts coordination/consultation with the Field Inspection Team to give advanced recommendation to the Head of Department of Public Works as to the application already submitted.

7. Signs the permit or the letter of disapproval. The Head of Dipenda signs the

permit or the letter of disapproval as soon as this is received. 8. Everyday obtains the signed permits and letters of disapproval from the Sub-

Department of Human Settlement. Upon receipt of the signed permit or letter of disapproval, the concerned UPTSA staff duly informs the Applicant. In case of an approved application, the Applicant is likewise informed of the amount that has to be paid.

9. Pays for and receives the permit or receives the letter of disapproval. On the

basis of the information given by the concerned UPTSA staff, the Applicant pays for and receives the permit or receives letter of disapproval.



5 PERMIT FOR KIOSK & STALL USE

5.1 Definition The permit for kiosk use, which is provided by the Regent, authorizes a person or institution to use a market kiosk managed by the local government. The permit is issued, on behalf of the Regent, by the Dipenda (Local Revenue Office/Department) of Bantul Regency. The legal basis for issuing the permit is the Local Regulation No. 5/2000 on Tax Retribution of Kiosk and Stall The permit can be processed within fourteen (12) working days and is effective for a maximum period of one year, after which it has to be renewed. The computation of the fees for kiosk and stall is the rent (value) price based on types and location of the structure as presented in Annex E.

5.2 Process and Procedure Flowchart The process involved in obtaining an Advertising Permit is graphically shown in Figure 4.5. The procedures are briefly described as follows:

Actor Procedure Applicant 1. Obtains, fills out, and submits an application

form.

UPTSA Staff 2. Inspects the completeness and accepts the application form.


3. Receives the application document, prepares the draft permit and computes the fee of kiosk rent.

Head of Dipenda

4. Approves and signs the permit or a letter of disapproval.

UPTSA staff

5. Obtains the permit or letter of disapproval.

Applicant 6. Pays for and receives the permit or receives the letter of disapproval.



FIGURE 4.5 PROCESS FLOW CHART FOR THE ISSUANCE OF PERMIT FOR KIOSK USE

UPTSA STAFFSUB-DEPARTMENT OF DATA

COLLECTION AND TAX SETTING DEPARTMENT HEAD

3. Receives the application document, prepares the draft permit and computes the fee of kiosk rent.

2. Inspects the completeness and accepts the application form.


4. Approves and signs the permit or a letter of disapproval.

APPLICANTDIPENDA (LOCAL GOVERNMENT REVENUE OFFICE/DEPARTMENT)

5. Obtains the permit or letter of diapproval.

6. Pays for and receives the permit or receives the letter of diapproval.



5.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the foregoing procedures are as follows: 1.

2.

3.

4.

5.

6.

Obtain, fill out and submit an application form. Application is made in written form by filling out the blank available in the Office of UPTSA Bantul Regency. Aside from filling out the blank, the Applicant is also required to attach the following: a. Photocopy of Applicant’s identification card/family card (3 sheets) b. 3 passport photos (3 x 4 cm) c. Photocopy of permit for kiosk use (for permit renewal) d. A statement letter for kiosk/stall use e. A statement letter of ability to pay the permit fee timely f. A documentary stamp of Rp 6’000

Inspect the completeness of and accept the application form. In brief, the UPTSA Staff concerned does the following: a. Receive the application form. b. Inspect the completeness of the application and its supporting documents. c. Return the incomplete or improperly accomplished application form to the



Then, the UPTSA staff concerned submits the application document to the Sub-Department of Data Collection and Tax Setting Bantul Regency.

Receive the application document, prepare a draft permit or a letter of disapproval and compute the rent fee. After receiving the application document from UPTSA office, Sub-Department of Data Collection and Tax Setting staff inspects and then prepares a draft permit or a letter of disapproval and at the same time computes the rent fee to be paid by the Applicant, and finally submits the application document to the Head of Dipenda.

Approve and sign with an initial the permit or a letter of disapproval. Based on recommendations (inputs) from the Sub-Department of Data Collection and Tax Setting, the Head of Dipenda signs with an initial the permit or the letter of disapproval already prepared by the team.

Obtain the permit or the letter of disapproval. Every day, the UPTSA staff obtains the permit or the letter of disapproval signed by the Head of Dipenda and notifies the Applicant on the status of his application, included the permit fee to be paid, or that his application is disapproved due to be in contradiction to the existing criteria and guidelines.

Pay for and obtains the permit or receives the letter of disapproval. On the basis of the information given by the UPTSA Staff concerned, the Applicant then pays for and obtains the permit or receives the letter of disapproval.



6 PUBLIC TRANSPORTATION FRANCHISE

6.1 Definition The franchise is granted to individuals or institutions who are contemplating operating public transportation within the limits of the geographical boundaries of the municipality. The franchise is issued by the local Department of Transportation located in Jalan Dr. Wahidin S.H. No 70 Bantul, with telephone number (0274) 367321. The process of issuing the franchise can be finished in nine working days from the time an application with complete supporting documents is submitted. The franchise is effective for a period of five years, subject to extension. Annex F shows an example of how the franchise fee is computed.

6.2 Procedures and Process Flow Chart The process of obtaining the franchise is graphically presented in Figure 4.6. The procedures are briefly described as follows: Actor Procedure Applicant 1. Obtains, fills out, and submits an application

form.

UPTSA Staff 2. Inspects the completeness of and accepts the application form, and prepares in invitation for field inspection.

Head of Land Transportation Sub-Department

3. Accepts the application document and conducts a field inspection.

4. Prepares an Official Report, a draft franchise or a letter of disapproval.

Head of Transportation Department

5. Approves and signs the franchise or the letter of disapproval.

UPTSA staff 6. Obtains the signed franchise or letter of

disapproval.

Applicant 7. Pays for and receives the franchise or receives the letter of disapproval.



FIGURE 4.6 PROCESS FLOW CHART FOR THE ISSUANCE OF PUBLIC TRANSPORTATION FRANCHISE

UPTSA STAFFSUB-DEPARTMENT OF LAND

TRANSPORTATION DEPARTMENT HEAD


2. Inspects the completeness and accepts the application form, and prepares an invitation for field inspection.


5. Approves and signs the franchise or letter of disapproval.

APPLICANTDEPARTMENT OF TRANSPORTATION

6. Obtains the signed franchise or letter of diapproval.

7. Pays for and receives the franchise or receives the letter of diapproval.

4. Prepares an Official Report, a draft franchise or a letter of disapproval.



6.3 Explanatory Notes and Guidelines Following are the explanatory notes and guidelines for undertaking the foregoing procedures: 1. Obtains, fills out, and submits and application form. Aside from filling out the form,

the Applicant is also required to attach the following documents: a. Copy of transportation business permit of (with the original shown to the

receiving officer at the UPTSA) b. Copy of vehicle registration, owner's identification card, and certificate of

ownership (with the originals shown to the receiving officer) c. Picture of location and facility of the motor pool/garage d. Letter of cooperation/agreement with a third party who will provide the

services for vehicle maintenance, if not to be provided in-house by the Applicant.

e. For franchise renewal), the application is provided with the latest Supervision Card and the expired franchise.

2. Inspects the completeness of and accepts the form, and submits it to the Head of

Permits Sub-Department. In brief, the concerned UPTSA staff does the following: a. Receives the application form. b. Inspects the completeness of the application form and its supporting

documents. c. Returns incomplete or improperly accomplished application form to the


d. For each application that is accepted, provides the Applicant with an official acknowledgement of acceptance.

Accepts the application document and conducts a field inspection. As soon as the application document is accepted, the Head of Land Transportation Sub-Department conducts a field inspection to verify:

3.

a. If the proposed route can still accommodate additional public transportation vehicles.

b. In case of competition for limited slots in particular route, the Applicant appears to be able to provide the best service.

Prepares an Official Report, a draft franchise or a letter of disapproval. After conducting a field inspection, the Head of Land Transportation Sub-Department prepares an Official Report on a summary of findings and a recommendation as to whether the application should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft franchise or a letter of disapproval and at the same time computes the franchise fee to be paid by the applicant. Finally, all the application and its supporting documents are submitted to the Department Head.

4.

Approves and signs the franchise or the letter of disapproval. Based on the recommendation from the Land Transportation Sub-Department, the Department Head then signs the franchise or letter of disapproval.

5.


PART IV: GOVERNMENT SERVICE DELIVERY 4-25 6. Obtains the signed franchises and letters of disapproval from the office of the

Department Head. Upon obtaining the franchises and the letters of disapproval, the concerned UPTSA staff then informs the applicants as to the status of their application. For approved applications, he also informs each applicant of the fee to be paid.

Pays and receives the franchise or receives the letter of disapproval. After receiving the notification from UPTSA, the Applicant then pays the stipulated fee and receives the franchise or receives the letter of disapproval.

7.



7 TRANSPORTATION BUSINESS PERMIT

7.1 Definition

Transportation business permit pertains to an authorization from the Regent to an individual or an entity to provide passenger- and freight-transport services. The agency authorized to process and issue the Transportation Business Permit is the Department of Transportation located at Jalan Khudori No.59 Wates, with telephone number (0274) 773154. The legal basis underlying the issuance of Transportation business Permit is Perda (Local regulation) Bantul Regency No.1/1998 on Transportation Business Permit. The process of Transportation Business Permit takes 14 working days after an application form has been completely accomplished. The permit is effective as long as the company still operates its transportation services. Detailed tariff computation of the cost for the permit issuance is presented in Annex G.

7.2 Procedures and Process Flow Chart The process flow chart for obtaining Transportation Business Permit is graphically presented in Figure 4.7 and the procedures are briefly presented as follows:



UPTSA Staff 2. Inspects the completeness of and accepts

the application form, and prepares invitation for field inspection.

Head of Land Transportation Sub-Department


4. Prepares an Official Report, a draft permit or a letter of disapproval.

Head of Transportation Department

5. Inspects the draft permit and signs it with his initial.

UPTSA Staff


Applicant 7. Pays for and obtains the permit or receives the letter of disapproval.



FIGURE 4.7 PROCESS FLOW CHART FOR THE ISSUANCE OF TRANSPORTATION BUSINESS PERMIT

UPTSA STAFFSUB-DEPARTMENT OF LAND

TRANSPORTATION DEPARTMENT HEAD


2. Inspects the completeness and accepts the application form, and prepares an invitation for field inspection.


5. Approves and signs the letter or letter of disapproval.

APPLICANTDEPARTMENT OF TRANSPORTATION

6. Obtains the signed permit or letter of diapproval.

7. Pays for and receives the permit or receives the letter of diapproval.

4. Prepares an Official Report, a draft premit or a letter of disapproval.



7.3 Explanatory Notes and Guidelines The procedures for obtaining the Transportation Business Permit are as follows: 1. Obtain, fill out and submit an application form. Aside from filling out the

application form, the Applicant is also required to attach supporting documents: a. Copy of Tax Identification Number (NPWP) b. Copy of Article of Business Incorporation (for business entity) or Applicant’s

Identification Card (for individual) c. Copy of a statement letter of the business domicile d. Copy of Business Location Permit (SITU) e. A statement letter of ability to own 5 motor vehicles f. A statement letter of ability to provide facility of the motor pool/garage

2. Inspect the completeness of and accepts the application form. In brief, the UPTSA Staff concerned does the following: a. Receive the application document. b. Inspect the completeness of the application and supporting documents. c. Return incomplete or improperly accomplished application form to the



Besides, the UPTSA concerned submits the application document to the Head of Land Transportation Department.

3. Accepts the application document and conducts a field inspection. After

accepting the application document, the staff of Land Transportation Department then conducts a field inspection to verify the conditions of vehicles, facility of motor pool/garage and the service quality.

4. Prepares an Official Report, a draft permit or a letter of disapproval. After

conducting a field inspection, the Head of Land Transportation Sub-Department prepares an Official Report on a summary of findings and a recommendation as to whether the application should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the applicant. Finally, all the application and its supporting documents are submitted to the Department Head.

5. Approves and signs the permit or the letter of disapproval. Based on the

recommendation from the Land Transportation Sub-Department, the Department Head then signs the permit or letter of disapproval.

6. Obtains the signed permits and letters of disapproval from the office of the

Department Head. Upon obtaining the permits and the letters of disapproval, the concerned UPTSA staff then informs the applicants as to the status of their application. For approved applications, he also informs each applicant of the fee to be paid.


PART IV: GOVERNMENT SERVICE DELIVERY 4-29 7. Pays and receives the permit or receives the letter of disapproval. After receiving

the notification from UPTSA, the Applicant then pays the stipulated fee and receives the permit or receives the letter of disapproval.



8 TRADING PERMIT (SIUP) 8.1 Definition

Trading Permit is a permit provided for a company to run a trading business. The local government agency authorized to issue the Trading Permit is Sub-Department of Trading Affairs, Department of Industry, Trade and Cooperative located in Jalan Pramuka No.3 Bantul, with telephone number (0274) 367584. The application form for SIUP is provided by UPTSA located in Kompleks Parasamya Bantul Regency, with telephone number (0274) 386343. The legal bases for the issuance of Trading Permit are the Decree of the Industry and Trade Minister No. 289/MPP/Kep/10/2001 on Mechanism of Trading Permit (SIUP) Issuance, and the Local Regulation Kabupaten Bantul No. 11/2002 on Trading Permit (SIUP). The accomplishment process of Transportation Business Permit takes 12 (twelve) working days and is effective as long as the company still operates. Any business entity required to own the Trading Permit (SIUP) is one that operates in the jurisdiction of Local Government of Bantul, while that of incorporated, or self-operated by the owner and his family with a capital less than Rp 5’000’000, and other types of street vendors are not required to own the permit. Detailed computation of Trading Permit fee tariffs is presented in Annex H.


The process of obtaining the SIUP, TDP and TDG is graphically presented in Figure 4.8 and the procedures are briefly described as follows:



form.

UPTSA Staff 2. Inspects the completeness of and accepts the application form, and prepares invitation for field inspection.

Company Registration & Licensing Section


4. Prepares an Official Report, a draft permit or a letter of disapproval, and computes the permit fee.

Head of Trade Affairs Sub-Department

5. Approve or disapprove the application.

Head of Department of Industry, Trade and Cooperative

6. Approves and signs the permit or letter of disapproval



FIGURE 4.8 PROCESS FLOW CHART FOR THE ISSUANCE OF TRADING PERMIT (SIUP)

UPTSA STAFFCOMPANY REGISTRATION &

LICENSING SECTIONSUB-DEPARTMENT OF

TRADE AFFAIRS







DEPARTMENT OF INDUSTRY, TRADE AND COOPERATIVE

6. Approves and signs the permit or letter of disapproval.


8. Pays for and obtains the permit or receives the letter of disapproval.


PART IV: GOVERNMENT SERVICE DELIVERY 4-32 UPTSA Staff 7. Obtains the signed permit or letter of

disapproval.


8.3 Explanatory Notes and Guidelines Following are the explanatory notes and guidelines for undertaking the foregoing procedures:

1. Obtains and fills out an application form. The Applicant obtains an application

form from the office of UPTSA. Aside from filling out the application form, the Applicant is required to attach the following: a. The original and a photocopy of Company Establishment Certificate. b. The original and a photocopy of institution legalization from the Ministry of c. Justice (for limited liability companies). d. The photocopy of the Identification Card or Passport of the company’s

owner/director. e. The photocopy of Business Permit. f. Company’s Financial Statement

2. Inspects the completeness of and accepts the application form. In brief, the

UPTSA Staff concerned does the following: e. Receive the application document. f. Inspect the completeness of the application and supporting documents. g. Return incomplete or improperly accomplished application form to the


h. For each application that is accepted, provides the Applicant with an official acknowledgment of acceptance.

Besides, the UPTSA concerned submits the application document to the Head of Company Registration & Licensing Section.

3. Accepts the application document and conducts a field inspection. Soon after

accepting the application document, the staff of Company Registration & Licensing Section then conducts a field inspection to verify the conditions of the applicant

4. Prepares an Official Report, a draft permit or a letter of disapproval. After

conducting a field inspection, the Head of Land Transportation Sub-Department prepares an Official Report on a summary of findings and a recommendation as to whether the application should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the applicant. Finally, all the application and its supporting documents are submitted to the Department Head.


PART IV: GOVERNMENT SERVICE DELIVERY 4-33 5. Approves and signs the permit or the letter of disapproval. Based on the


6. Approves and signs the permit or letter of disapproval. The Department Head

signs the permit or letter of disapproval, already prepared by the field inspection team and signed with initials by the Head of Trade Affairs Sub-Department.



8. Pays and receives the permit or receives the letter of disapproval. After receiving


8.4 Sanctions

1. The Written warning will be given to the company three times successively in

three months with a grace period of 1 month by the official authorized to issue the SIUP using a Model D Form, if: a. the business owner does not operate his business in accordance with the

stipulations included in the SIUP; b. the business owner has not owned a Company Registration; c. there is a complaint from the authorized Official or Intellectual Property Right

(HAKI) Holder that the company has made violation of the Intellectual Property Right; and

d. there is a complaint from the authorized official that the company does not comply with tax regulations.

2. The SIUP is frozen if:

a. the owner does not obey the written warning. b. operates his business that is suspected to inflict customers losses and does

not comply with the stipulations as stated in the SIUP. c. the owner is being summoned to court due to be suspected to violate the

HAKI and/or do criminal act. As long as the SIPU is frozen, the company is banned to execute its business. The duration of SIUP freezing for items (a) and (b) is valid for 6 (six) months since the issuance of establishment of SIUP freezing. The duration of SIUP freezing for item (c) will be valid up to the new legal decision of the courthouse. SIUP freezing is made by the authorized official of SIUP issuance using Model E Form. The frozen SIUP will be effective again if the concerned company: a. has complied with the written warning by executing tasks as the prescribed

stipulations. b. is declared not to make any violation of HAKI and/or do any criminal act as

decided by the courthouse.


PART IV: GOVERNMENT SERVICE DELIVERY 4-34 3. The SIUP can be revoked if:

a. the company concerned does not comply with the written warning surpassing the duration of validity of SIUP freezing.

b. the company concerned has been imposed a legal sanction of HAKI violation and/or other criminal act by the courthouse.

c. the company concerned violates the existing stipulations of laws (regulations) stating the sanction of SIUP revocation.

SIUP revocation is conducted by the authorized official of SIUP issuance using a SIUP Revocation Form.



9 COMPANY REGISTRATION (TDP)

9.1 Definition Company Registration (TDP) is a formal listing of companies required under Law No.3 / 1982. The registration is meant to provide protection for companies as well as their products and services. The company registration is legalized by Sub-Department of Trading Affairs, Department of Industry, Trade and Cooperative located in Jalan Pramuka No.3 Bantul, with telephone number (0274) 367584. The application form for the company registration is provided by UPTSA located in Kompleks Parasamya Bantul Regency, with telephone number (0274) 386343. Legal bases: a. Law No. 3 / 1982 on Company Registration Obligatory b. Decree of Minister of Industry and Trade No.12/MPP/Kep.1/1998 on the

Legalization of Company Registration (TDP) c. Decree of Bantul Regent No. 505 / 2001 on the service delivery of permits issued

by the Department of Industry, Trade and Cooperative. The company registration is effective for five years, after which it has to be renewed not later than three months before its expiry date. The administration cost for Company Registration is presented in Annex I.

9.2 Procedures and Process Flow Chart The process flow chart for the legalization of Company Registration is graphically presented in Figure 4.9 and the procedures are briefly described as follows:



form.


Company Registration & Licensing Section

3. Accepts the application document, and prepares a draft permit or a letter of disapproval and computes the fee.

Head of Trade Affairs Sub-Department


Head of Department of Industry, Trade and Cooperative

5. Approves and signs the permit or letter of disapproval



FIGURE 4.9 PROCESS FLOW CHART FOR OBTAINING COMPANY REGISTRATION (TDP)

UPTSA STAFFCOMPANY REGISTRATION &


TRADE AFFAIRS

3. Accepts the application document and prepares a draft permit or letter of disapproval and computes the fee.










PART IV: GOVERNMENT SERVICE DELIVERY 4-37 UPTSA Staff 6. Obtains the signed permit or letter of

disapproval.


9.3 Explanatory Notes and Guidelines The procedures for Company Registration (TDP) are as follows: 1. Obtains, fills out and submits an application form. Aside from filling out the

application form, the Applicant is also required to attach the following: a. Photocopy of company’s article of incorporation (the original shown). b. Photocopy of the Decree from the Minister of Law and Legislation (for the

Company with Limited Liability) c. The Identification Card or Passport of the owner/manager. d. Photocopy of Business Permit.

2. Inspects the completeness of and accepts the application form. In brief, the concerned UPTSA staff does the following: a. Receives the application document. b. Inspects the completeness of the document. c. Returns incomplete or improperly accomplished application form and

supporting documents and provides the Applicant with a list of revisions/additions that need to be made.


Besides, the UPTSA concerned submits the application document to the Head of Company Registration & Licensing Section.

3. Accepts the application document and conducts a field inspection. Soon after

accepting the application document, the staff of Company Registration & Licensing Section then conducts a field inspection to verify the conditions of the applicant

4. Approves and signs the permit or the letter of disapproval. Based on the



signs the permit or letter of disapproval, already prepared by the field inspection team and signed with initials by the Head of Trade Affairs Sub-Department.


Department Head. Upon obtaining the permits and the letters of disapproval, the concerned UPTSA staff then informs the applicants as to the status of their



application. For approved applications, he also informs each applicant of the fee to be paid.



9.4 Sanction

1. One is obliged to list his company in the Company Register. If not fulfilling such

obligation either intentionally or accidentally, he will be threatened by an in jail punishment not more than three months or given a fine not more than Rp 3’000’000.- (three million rupiah). Such an action is a crime.

2. One misleading a registration or not completing the registration will be threatened

with an in jail punishment not more than three months or given a fine not more than Rp 1’500’000.- (one million and five hundred thousand rupiah). Such an action is a violation.

One who does not adhere to the obligations stated in the existing law to come or refuse to submit a certain requirement needed in Company Register will be threatened with an in jail punishment not more than two months or given a fine not more than Rp 1’000’000.- (one million rupiah). Such an action is a violation.



10 INDUSTRY REGISTRATION (TDI), INDUSTRIAL BUSINESS PERMIT (IUI), AND INDUSTRY EXPANSION PERMIT (IPI)

10.1 Definition Industry Registration is a formal listing of industries issued by the Local Government through the Department of Industry, Trade and Cooperative for an industry owner having a total investment between Rp 5’000’000 and Rp 200’000’000, exclusive of the value of land and property. Industrial Business Permit (IUI) is one that is issued by the Local Government through the Department of Industry, Trade and Cooperative for any an industry owner having a total investment above Rp 200’000’000, exclusive of the value of land and property. Industry Expansion Permit (IPI) is one that is issued by the Local Government through the Department of Industry, Trade and Cooperative for any establishment that has owned an IUI and will make a business expansion, of which coverage is above 30% of its total production capacity as licensed. Legal bases: a. Laws No. 3/1982 on Company Registration Requirement (Government Official

Gazette No. 41/1982, Additional Government Official Gazette No. 3214). b. Laws No. 18/1987 on Local Government Tax and Fee (Government Official

Gazette No. 41/1987, Additional Government Official Gazette No. 3685), connected with Laws No. 34/2000 (Government Official Gazette No 4048/2000)

c. Government Regulation No. 13/1995 on Industrial Business Permit (Government Official Gazette No. 25/1995)

d. Government Regulation No. 66/2001 on Local Government Fee Retribution (Government Official Gazette No. 119/2001, Additional Government Official Gazette No. 4138)

e. Local Government No. 12/2002 on Industry Permit in Bantul Regency. The accomplishment process of the issuance of the above registration and permit takes 12 working days, and they are effective within a period of 5 years, after which they have to be renewed not later than 3 months before the duration of validity expires. The cost of registration process is presented in Annex J.

10.2 Procedures and Process Flow Chart The process flow chart for the legalization of Company Registration is graphically presented in Figure 4.10 and the procedures are briefly described as follows:



FIGURE 4.10 PROCESS FLOW CHART FOR THE ISSUANCE OF INDUSTRY REGISTRATION (IUI) AND EXPANSION (IPI)

UPTSA STAFFINDUSTRIAL BUSINESS DEV'T AND


INDUSTRY

3. Accepts the application document and prepares a draft permit and computes the fee.







4. Approves or disapproves the application.

7. Pays for and receives the permit, or letter of disapproval.





form.


Industrial Business Development and Licensing Section

3. Accepts the application document, prepares a draft permit and computes the permit fee.

Head of Industry Sub-Department

4. Approves or disapproves the permit.

Head of Industry, Trade and Cooperative


UPTSA staff


Applicant 7. Pays for and receives the permit, or letter of disapproval.

10.3 Explanatory Notes and Guidelines The procedures for Company Registration (TDP) are as follows: 1. Obtains, fills out and submits an application form. Aside from filling out the

application form, the Applicant is also required to attach the following:

For application for TDI: a. Photocopy of the Applicant’s/Managing Director’s/ Identification Card (KTP). b. Photocopy of Business Permit (HO) c. Photocopy of Tax Identification Number (NPWP) d. Photocopy of the results of Environmental Impact Assessments (UKL, UPL &

SPPL) e. Location map

For application for IUI: a. Photocopy of Business Permit b. Photocopy of Article of Business Incorporation c. Photocopy of letter stating the Information on Factory and Its Production

Facilities d. Photocopy of Business Location Permit e. Photocopy of Environmental Management Document f. Photocopy of Recommendation Letter

For application for IPI: a. Photocopy of the Applicant’s/Managing Director’s/ Identification Card (KTP). b. Photocopy of Article of Business Incorporation c. Photocopy of Business Permit (HO)



d. Photocopy of the results of Environmental Impact Assessments (UKL, UPL & SPPL)

e. Location map f. Photocopy of Flow-Sheet Process g. Photocopy of draft summary of the applied technology

2. Inspects the completeness of and accepts the application form. In brief, the concerned UPTSA staff does the following: a. Receives the application document. b. Inspects the completeness of the document. c. Returns incomplete or improperly accomplished application form and



Besides, the UPTSA concerned submits the application document to the Head Industrial Business Development and Licensing Section.

3. Accepts the application document, and prepares a draft permit or a letter of

disapproval. Soon after accepting the application document from the UPTSA, the staff of Industrial Business Development and Licensing Section inspects it and then prepares a draft permit and at the same time computes the permit fee to be paid by the Applicant, and finally submits the application and its supporting documents to the Head of Sub-Department of Industry.

4. Approves or disapproves the application. Based on the recommendation from the

Industrial Business Development and Licensing Section, the Head of Sub-Department of Industry approves or disapproves the application.


signs the permit or letter of disapproval, already prepared by the field inspection team and signed with initials by the Head of Sub-Department of Industry.





10.4 Sanction

1. WARNING a. The company is notified with a written warning once:

1) The company owner executes an expansion without Company Registration Permit;



2) The company has not been registered in the Company Registration Division;

3) The company owner does not submit any information of his business (Information on Industry)

4) The company operation inflicts living environmental impacts or damages 5) The company operation violates the provisions prescribed in the IPI 6) The company violates the patent rights.

b. A written warning will be provided to the industry owner 3 months consecutively with a grace period of 1 month.

c. The mechanism of warning provision is governed by the Decree of the

Department Head. 2. FREEZING

f. Permit freezing will be made if:

1) The company ignores the warning; 2) The company violates the provisions of the permit and operates differently

from the way it should, thereby becoming harmful for the consumers. 3) The company is under the process of court because of certain violations.

g. Industry freezing as aforementioned in items a. 1) and a. 2) is effective for six

months since the date of the permit issuance. h. Industry freezing as aforementioned in item a. 3) is effective until there is a

final decision from the Court.

i. The permit will be effective again whenever the concerned company makes improvements in accordance with the provision of the Local Regulations.

j. The mechanism of industry freezing is governed by the Decree of Department

Head. 3. REVOCATION

a. Permit can be revoked if:

1. The Permit issued is not in accordance with the right data or information or the data or information that is counterfeited by the company owner.

2. The company owner does not make any improvements as the existing provisions beyond the freezing period as aforementioned in item 1.b.

3. The company has been proven guilty by the Court. 4. The company violates the provisions of the existing laws that contains

sanctions of permit revocation. b. Industry Registration Permit revocation is made directly without any prior

written warning. c. The Mechanism of permit revocation is governed by the Decree of

Department Head.



11 LAND-USE CONVERSION PERMIT

11.1 Definition The Land-Use Conversion Permit (Izin Perubahan Penggunaan Tanah or IPPT) is an authorization to convert agricultural land into residential, commercial/industrial or other uses. The land-use conversion permit is issued by the Department of Agrarian Affairs Bantul Regency. A sample computation of the cost of obtaining the permit is presented in Annex F.

11.2 Procedures and Process Flow Chart The process diagram to obtain IPPT is presented in Figure 4.11 and briefly discussed as follows:


1. Obtains, fills out, and submits an application

form.


3. Prepares invitation for field inspection team.

IPPT Field Inspection Team 4. Conducts a field inspection. 5. Prepares an official report, a draft permit or a

letter of disapproval and computes the permit fee.

Head of Sub-Department of Land-in-authority Control


Head of Office of Local Land Agency

7. Signs with initials a permit or a letter of disapproval.

Regent 8. Approves and signs the permit or letter of disapproval.

UPTSA Staff 9. Obtains the signed permit or letter of

disapproval.

Applicant 10. Pays for and obtains the permit or receives a letter of disapproval.



FIGURE 4.11 PROCESS FLOW CHART FOR THE ISSUANCE OF LAND-USE CONVERSION PERMIT

UPTSA STAFFIPPT FIELD

INSPECTION TEAMSUB-DEPARTMENT OF LAND-

IN-AUTHORITY CONTROL

3. Prepares invitation for field inspection team.





LOCAL LAND AGENCY

7. Signs with initials a permit or letter of disapproval.


10. Pays for and obtains the permit or receives a letter of disapproval.

REGENT

4. Conducts a field inspection.

5. Prepares an Official Report, a draft permit or letter of disapproval and computes the permit fee.




11.3 Explanatory Notes and Guidelines The following is a more detailed description of the procedure above: 1. Obtains, fills out, and submits an application form. Aside from filling out the

application form, the Applicant also need to attach the following supporting documents: a. Copy of the Applicant's identification card (KTP) b. Copy of certificate of land title c. Copy of statement letter of Land and Property Tax Arrears (SPPT-PBB) and

evidence of payment of Land and Property Tax (PBB) d. Location map e. Letter of authorization, if the application is filled out by a person other than the

Applicant. 2. Inspects the completeness of and accepts the application and prepares invitation

for field inspection. In brief, the concerned UPTSA staff does the following: a. Receives the application document. b. Inspects the completeness of the application form and its supporting

documents. c. Returns incomplete or improperly accomplished application together with a

list of the revisions/additions that need to be done. d. For each accepted application, provides the Applicant with an official

acknowledgment of acceptance. e. Send the application document to the Department of Agrarian Affairs.

3. Prepares invitation for field inspection team. The UPTSA arranges the schedule

of field inspection and prepares the invitation and submits it to the IPPT Field Inspection Team.

4. Conducts a field inspection. After receiving the application document of IPPT

from the UPTSA office, the IPPT Field Inspection Team conducts a field inspection. The team consists of the representatives from Bappeda (Local Development and Planning Board), Bagian Hukum (Law Division), Public Works Department, and Department of Agriculture and Husbandry and Department of Irrigation.

5. Prepares an official report, a draft permit or a letter of disapproval and computes

the permit fee. After conducting the field inspection, the Team prepares an Official Report on a summary of findings and a recommendation as to whether the application should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the applicant. Finally, it sends the application and its supporting documents to the Sub-Department of Land-in-Authority Control

6. Conducts consultation and re-inspects the application document after receiving

the document from IPPT Team, the Head of Sub-Department of Land-in-Authority Control re-inspects it and conduct coordination/consultation with the Team for any further recommendation to the Head of Local Land Agency on the concerned application.


PART IV: GOVERNMENT SERVICE DELIVERY 4-47 7. Signs with initials a permit or a letter of disapproval. On the basis of the results of

field inspection and recommendation from the Head of Sub-Department of Land-in-Authority Control, the Agency Head signs with his initials the permit or letter of disapproval already prepared by the Team.

8. Approves and signs the permit or letter of disapproval. The Regent signs the

permit or letter of disapproval already signed with initials by the Agency Head. 9. Obtains the signed permit or letter of disapproval. The UPTSA staff takes the

permit or letter of disapproval signed by the Regent and then notifies the Applicant on the status of his application accompanied with the amount of the permit fee to be paid, or that his application is disapproved due to be in contradiction to the existing criteria and guidelines.

10. Pays for and obtains the permit or receives a letter of disapproval. After receiving




12 ISSUANCE OF CIVIL REGISTRATION CERTIFICATE 12.1 Definition

The Civil Registration Certificate is an original certificate made by the civil registration staff as the public service official covering such important events as birth, marriage, child adoption or death. The Civil Registration Certificate can be obtained through the Office of UPTSA located in Kompleks Parasamya Bantul Regency with telephone (0274) 386343. The legal basis for Civil Registration Certificate is the Local Government of Bantul No. 7/2000 on Demographic Services Delivery. The accomplishment process of Civil Registration Certificate issuance takes 1 working day, assuming that all the required conditions has been met (complexly and correctly). The Certificate is effective since the day of the issuance. The detailed cost to obtain the civil register certificate is presented in Annex L.


The application for the issuance of civil registration certificate is graphically presented in Figure 4.12 and briefly enumerated as follows:


1. Obtains and fills out an application form.


Registry Staff 3. Lists the application in registration book.

Applicant (and 2 witnesses) 4. Sign the certificate.

Head of Sub-Department of Civil Registration/Head of Related Section

5. Inspects and signs with initials on the certificate quotation.

Department Head 6. Signs the certificate and quotation.

UPTSA Staff 7. Obtains the signed certificate and quotation.

Applicant

8. Pays for and receives the certificate and

quotation.



FIGURE 4.12 PROCESS FLOW CHART FOR THE ISSUANCE OF CIVIL REGISTRATION CERTIFICATE

UPTSA STAFF HEAD OF SUB-DEP. OF CIVILREGISTRATION/HEAD OF RELATED

SECTIONDEPARTMENT HEAD

3. Lists the application in registration book.



5. Approves and signs the letter or letter of disapproval.

APPLICANT

DEPARTMENT OF DEMOGRAPHY AND CIVIL REGISTRATION

7. Obtains the signed certificate and quotation.

8. Pays for and receives the certificate and quotation.

4. signs the certificate.

START

6. Signs the certificate and quotation.



12.3 Explanatory Notes and Guidelines The following is a detailed description to obtain the service of Civil Register Certificate: 1. Obtains and fills out an application form. Before being submitted to the Service

Unit of the Department of Demography and Community Empowerment, the completely accomplished application form should be certified by the local village and sub-district heads.

1. BIRTH CERTIFICATE

A. General Birth Certificate

Birth registration made not more that the specified duration (60 work days for Indonesian citizen/WNI and 10 work days for WNI of Chinese descendants or Foreigner/WNA) since the childbirth date. Requirements for the WNI: 1. Recommendation letter from the Village 2. Photocopy of Birth Certificate 3. A Letter stating child birth 4. A photocopy of parents’ identification card (KTP) 5. A photocopy of Family Card/C1 6. A letter of authorization 7. A photocopy of the Applicant (if authorized) 8. Two witnesses of WNI (minimum, aged 21 or married)

Requirements for WNI (Chinese descendant): Similar to the above, and the following: 1. Father’s Evidence Letter as Indonesian Citizenship (SBKRI) 2. Evident Letter of name exchange 3. For out-of-marriage birth, the application is enclosed with mother’s

birth certificate Requirements for Foreigner/WNA: 1. A letter stating childbirth 2. Photocopy of Parents Marriage Certificate 3. Immigration document/passport 4. Letter of Self Report Identification (STMD) from the police 5. For out-of-marriage child, the application is enclosed with mother’s

birth certificate 6. Two witnesses (WNI, minimum aged 21/married))

B. Delayed Birth Certificate Birth Certificate Dispensation For the native WNI of Bantul born as of 31 December 1985, the requirements are as follows: 1. A recommendation letter from the Village Head 2. A letter stating childbirth 3. Photocopy of Marriage Certificate (parents) 4. Photocopy of parents’ identification cards 5. Photocopy of Family Card/C1



6. A statement letter of never having any birth certificate verified by the Village Head

7. A letter of authorization (if authorized) 8. Photocopy of school diploma (for those who have) 9. Two witnesses of WNI minimum aged 21/married Special Birth Certificate For WNI native birth of Bantul 1 January 1986 up to now but delayed more than 60 days, the requirements are similar to the dispensed birth (only equipped with a Letter of Unregistered (SKBT) issued by the Regent through UPTSA Office).

2. MARRIAGE CERTIFICATE Requirements: 1. A statement letter from the local religion leaders 2. A testimony from church, wihara or pura 3. Photocopy of quotation of birth from the two prospective bride and

bridegroom 4. A permission letter from parents 5. Photocopy of quotation of death and marriage certificates (for those who

is married) 6. Two WNI witnesses minimum ages 21/married 7. For WNI of Chinese descendants:

Photocopy of SKBR Photocopy of change in name Photocopy of parents’ marriage certificate Childbirth certificate legalized after marriage if the person concerned

has had a child before of the previous marriage

8. For WNA, the following are enclosed: Photocopy of passport legalized by immigration office STMD from police station Self identification from the first country

3. DIVORCE CERTIFICATE

Requirements: 1. Divorce letter from the Public Justice 2. Original quotation of Marriage Certificate 3. Photocopy of KTP and KK 4. Registration period of 1 month since the divorce letter is issued from the

Public Justice 4. DEATH CERTIFICATE

Requirements: 1. A statement letter of death from Village Head/Doctor 2. Photocopy of marriage certificate (for those who are already married) 3. Photocopy of parents’ marriage certificate (for those who are not married) 4. Photocopy of birth certificate 5. Photocopy of Family Card/C1



6. Immigration document (for WNA) 7. STMD for WNA 8. Photocopy of Applicant’s Identification Card/the authorized

2. Inspect and accept the application form. In inspecting the completeness of the

application document, the UPTSA staff concerned does the following: a. Receives the application document. b. Inspects the completeness of the document. c. Returns incomplete or improperly accomplished application form and



3. List the application in registration book. The registry staff will record the

application in the registration book and computes the fee for certificate processing, and then submits the draft certificate and quotation to the Head of Sub-Department of Registration/Related Section.

4. Sign and the certificate and quotation. The applicant and two witnesses sign the

certificate and quotation. 5. Inspects and signs with an initial. The Head of Sub-Department of

Registration/Related Section inspects the validity of the document (certificate & quotation) prepared by the UPTSA staff and then signs with his initial if the document is already correct.

6. Signs the certificate and quotation. The Head of Department of Demography

and Civil Registration signs the certificate and quotation. 7. Obtains the signed certificate and quotation. The concerned UPTSA staff

obtains the certificate and quotation signed by the Head of Department of Demography and Civil Registration.

8. Pays for the fee and receives the certificate and quotation. At the end of the

process, the Applicant receives the certificate already signed by the Department Head.



13 JOB SEEKER CARD ISSUANCE

13.1 Definition Job Seeker Card (AK/I Card) is a card proving that the card holder has enrolled himself as a job seeker. AK/I Card is processed by the Department of Manpower and Transmigration located in Jalan Gatot Subroto No.1 Bantul, with telephone number (0274) 367277. The process of this card takes only one working day provided that all the requirements have been fulfilled. This card is effective for two years. However, the cardholder who is still unemployed is obliged to re-enroll himself every six months.

13.2 Procedures and Process Flow Chart The process flow chart of how to obtain AK/I Card is graphically presented in Figure 4.13 and the procedures are briefly described as follows:

Actors Procedures Applicant


form.

Receptionist 2. Inspects the completeness of the enrollment requirements.

3. Provides blank application form of AK/I and AK/II.

Interviewer 4. Interviews the Applicant (job seeker).

5. Signs the application form of AK/I.

Administration Staff 6. Stamps the AK/I Card.

Applicant 7. Pays for the printing cost of and receives the AK/I Card.



FIGURE 4.13 PROCESS FLOW CHART FOR OBTAINING JOB SEEKER CARD (AK/I CARD)

APPLICANTRECEPTIONIST INTERVIEWER ADMINISTRATION STAFF

DEPARTMENT OF MANPOWER AND TRANSMIGRATION


2. Inspects the completeness of the enrollment requirements.

4. Interviews the Applicant (job seeker) 6. Stamps the AK/I Card.

3. Provides blank application form of AK/I and AK/II. 5. Signs the application form of AK/I.

7. Pays for the printing cost of and receives the AK/I Card.

START



13.3 Explanatory Notes and Guidelines 1. Obtains, fills out and submits an application form. The Applicant comes to the

Department of Manpower and Transmigration to obtain an application form for Job Seeker Card (AK/I Card). The application form is then filled out and attached with supporting documents.

2. Inspects the completeness of the enrollment requirements. Soon after receiving

the application document, the Receptionist then inspects the completeness of the application document. If it is not completely accomplished, it is returned to the Applicant.

3. Provides a blank application form of AK/I. If the requirements have been

completed, the Receptionist the provides the Applicant with an application form of AK/I.

4. Interviews the Applicant. After obtaining a blank form of AK/I, the Applicant will be

interviewed. He is then required to fill out the form to get further information about the Applicant.

5. Signs the AK/I Card. After the interview, the Interviewer signs the AK/I Card. 6. Stamps the AK/I Card. After the AK/I Card is signed, it is then sent to the

Administration Staff to be stamped. 7. Pays for the printing cost of and receives the AK/I Card. After the card is

stamped, the Applicant then pays for the printing cost and receives the AK/I Card.



14 PERMIT FOR EMPLOYING BLUE-COLLAR WORKERS OVERSEAS

14.1 Definition Employing blue-collar workers, or the so-called TKI, overseas is an activity conducted to bring the TKI/job seekers who want to go overseas to the employers/market demand overseas. The permit for employing TKI is divided into two types: a. PJTKI Operating Permit is a permit given to PJTK I (a company that serves TKI

who want to work overseas) to provide information, recruit and select prospective TKI.

b. TKI Processing Permit is a recommendation given to PJTKI to process the prospective TKI employed overseas.

The two permits are issued by the Department of Manpower and Transmigration located in Jalan Gatot Subroto No.1 Bantul with telephone number (0274) 367277. The process of issuing the permit only takes one working day provided that all the requirements have been fulfilled.

14.2 Procedures and Process Flow Chart The process flow chart for the issuance of the foregoing permits is graphically presented in Figure 4.14 and the procedures are described as follows:



Head of Manpower Employment Section


Head of PTK and PK Sub-Department

3. Prepares a draft permit.

Head of Manpower and Transmigration Department

4. Signs the permit.

Head of Manpower Employment Section

5. Informs the Applicant of the status of his

application.

Applicant 6. Pays for and receives the permit.



FIGURE 4.14 PROCESS FLOW CHART FOR EMPLOYING BLUE-COLLAR WORKERS OVERSEAS

APPLICANT HEAD OF MANPOWER EMPLOYMENTSECTION

HEAD OF PTK AND PK SUB-DEPARTMENT

DEPARTMENT HEAD




4. Prepares a draft permit and submits it to the Department Head.

5. Signs the permit.

6. Informs the Applicant of the status of his application.

START

3. Submits the application form to PTK and PK Sub-Dept. Head.

7. Pays for and receives the permit.



14.3 Explanatory Notes and Guidelines The following is a detailed description of the foregoing procedures: 1. Obtains and fills out an application form. Aside from filling out the application form

for PJTKI Operating Permit, the Applicant is required to attach the following supporting documents: a. An assignment letter from PJTKI b. A copy of employment cooperation agreement (between PJTKI and TKI User) c. A copy of Job Order / Demand Letter on behalf on PJTKI concerned d. Draft Employment Agreement (between PJTKI and Prospective TKI) e. Draft Work Agreement For TKI Processing Permit, the Applicant is required to attach the following: a. List of selected prospective TKI enclosed with the Identification card of the

TKI (KITKI) signed by PJTKI staff concerned. b. Employment Agreement between PJTKI and selected prospective TKI.

2. Inspects the completeness of and accepts the application form. The head of

Manpower Employment Section does the following: a. Accepts the application form. b. Inspects the completeness of the application document. c. Returns the incomplete or improperly accomplished application forms to the



3. Prepares a draft permit and submits it to the Head of Manpower and

Transmigration Department. The Head of PTK and PK Sub-Department then submits the draft permit to the Department Head for his approval.

4. Signs the permit. The draft permit, enclosed with complete supporting

documents, is then signed by the Head of Manpower and Transmigration Department.

5. Informs the Applicant of the status of his application. The permit that is already

signed by the Department Head is then returned to the Manpower Employment Section Head to be informed to the Applicant.

6. Pays for and receives the permit. Based on the notification from the Manpower

Employment Section Head, the Applicant then pays for and receives the permit.

14.4 Sanction

The permit may be revoked if: a. The permit holder does not extend the permit. b. The permit holder violates the provisions of the permit. c. The permit holder violates the existing regulation.



15 PERMIT FOR MAKING EFFICIENT USE OF WORK TRAINING FACILITIES

15.1 Definition

Making Efficient Use of Work Training Facilities (PFLK) or self-financed job training is the utilization of work training facilities provided in BLK (Work Training Office) outside the work training program set-up by the government. Working Training Program is a work training package with certain requirements and training outputs, limited participants per group, specific curricula, instructurs, and standardized materials and facilities, and conducted with a certain schedule. Specific Work Training Program is a work training package for a certain skill or limited activities. This program is based on the programs having been prepared by those having used the work training facilities or on the program having been formulated together with the BLK. The users of Work Training Facilities are any institutions, business entities or individuals that utilize the work training facilities. Training fee is the cost required to conduct the work training. The fee is paid by the users to the management of BLK. This is one of the local government’s revenues.

15.2 Procedures and Process Flow Chart The process flow chart for utilizing the work training facilities is graphically presented in Figure 4.15 and the procedures are described as follows:



form.

Sub-Department of Training and Working Productivity Staff

2. Inspects the completeness of and accepts the application document.

3. Prepares invitations and invites the Applicant (prospective trainees).

Technical Staff and Applicant 4. Conducts a discussion.

Head of Sub-Department of Training and Working Productivity

5. Approves the application and prepares an Official Report on Cooperation Agreement or disapproves the application.

Applicant 6. Complete administrative requirements as

stated in the Official Report.



FIGURE 4.15 PROCESS FLOW CHART OBTAINING THE PERMIT FOR MAKING EFFICIENT USE OF WORK EXERCISE FACILITIES (PFLK)

SUB-DEPARTMENT OF TRAINING &WORKING PRODUCTIVITY STAFF

HEAD OF SUB-DEPT. OF TRAININGAND WORKING PRODUCTIVITY TRAINING WORKSHOP STAFF

3. Prepares invitations and invites the Applicant (prospective trainees).



5. Approves the application and prepares an Official Report on Cooperation Agreement or disapprove the application.


4. Conducts a discussion.


8. Conducts and evaluates work training/exercise.

7. Signs the Official Report on Cooperation Agreement.

6. Complete administrative requirements as stated in the Official Report.

START

10. Presents training certificates.

9. Establish the graduates.


PART IV: GOVERNMENT SERVICE DELIVERY 4-61 Head of Department of Manpower and Transmigration

7. Signs the Official Report on Cooperation Agreement.

Training Workshop Staff 8. Conducts and evaluates work training/exercise

Head of Department of Manpower and Transmigration

9. Establish the graduates. 10. Presents training certificates.

15.3 Explanatory Notes and Guidelines The following is a detailed description of the foregoing procedures: 1. Obtains, fills out and submits an application form. The Applicant (prospective

trainee/user of work training facilities) submits a written application to the Head of Department of Manpower and Transmigration.

2. Inspects the completeness of and accepts the application document. After

inspecting the application form, the Sub-Department of Training and Working Productivity Staff then submits it to the Head of Sub-Department of Training and Working Productivity and the applicant is required to fill out Training registration the form.

3. Prepares invitations and invites the prospective trainee. The Sub-Department of

Training and Working Productivity Staff then prepares invitations and invites the prospective trainees (user of work training facilities).

4. Conducts a discussion/deliberation. The Sub-Department of Training and

Working Productivity Staff and the Applicant conduct a discussion to decide the following: a. Types of vocational training program b. Training curricula/syllabi c. Time schedule and venue of training d. Number of participants/trainee, for individual training – minimum 5 people e. Cost estimate

5. Approves the application and prepares an Official Report on Cooperation

Agreement or disapprove the application. The Head of Sub-Department of Training and Working Productivity will approve the application form and an official report on Cooperation Agreement is then prepared, or a letter of disapproval will be prepared if there is no agreement made.

6. Complete administrative requirements as stated in the Official Report. The

applicant complete the administrative requirements as stipulated in the Official Report on Cooperation Agreement


PART IV: GOVERNMENT SERVICE DELIVERY 4-62 7. Signs the Official Report on Cooperation Agreement. The Head of Sub-

Department of Training and Working Productivity and the applicant sign the cooperation agreement.

8. Conducts and evaluates work training/exercise. The prospective trainee is sent to

the vocational training workshop to follow the vocational training course (consisting theories and practices) in specified time duration. The training workshop staff will evaluate in terms of ability/knowledge/skills the trainee achieved during and after training.

9. Establishes the graduates. Based on the evaluation results, the Head of Head of

Department of Manpower and Transmigration then establishes those who meet the qualification (passing grade).

10. Presents the training certificates. Soon after selecting the graduates, the Head of

Department of Manpower and Transmigration signs and presents the training certificates to the trainees (approximately seven days after the closing of the training program).



16 CLASS – C MINING PERMIT (SIPD/SIPD.PR)

16.1 Definition The Class - C mining covers the excavation of sand, soil, andesit, gypsum, kaolin, calcite, and zeolit. Two types of Class - C mining permits are issued, as follows: a. Individual Mining Permit (SIPD) is issued to individuals or companies who wish to

engage in the exploration, exploration, treatment/purification, transportation, and selling of the aforementioned materials.

b. Communal Mining Permit (SIPD-PR) is issued to a local community who wishes

to engage in small-scale mining operations using simple equipment usually as part of a community self-help program.

The issuance of the two types of Class - C mining permits basically follows the same processes and set of procedures. The two permits are issued by the Department of Irrigation located in Jalan Kolonel Sugiyono No. 1, Bantul, with telephone number (0274) 367446. The permits are within 14 working days from the time of application. The tax computation for Class-C Mining is presented in Annex M.

16.2 Procedures and Process Flow Chart The process involved in obtaining both SIPD and SIPD-PR is geographically illustrated in Figure 4.16 and is briefly described as follows:

Actor Procedure

Applicant


form.

Service Staff 2. Inspects the completeness and accepts the application document.

Head of Water-use Licensing and Class-C Mining Section

3. Receives the application document and conducts a field survey.

4. Prepares an Official Report, a draft permit or a letter of disapproval and computes the permit fee.

Head of Sub-department of Environmental Benefits

5. Approves or disapproves the application form.

Head of Irrigation Department




FIGURE 4.16 PROCESS FLOW CHART FOR THE ISSUANCE OF CLASS – C MINING PERMIT (SIPD/SIPD.PR)

SERVICE STAFF HEAD OF WATER-USE LICENSINGAND CLASS-C MINING SECTION

HEAD OF SUB-DEPARTMENT OFENVIRONMENTAL BENEFITS


2. Inspects the completeness of and accepts the application document.


3. Receives the application document and conducts a field survey.



DEPARTMENT OF IRRIGATION

5. Approves or disapproves the application form.

8. Pays of and obtains the permit or receives the letter of disapproval.



PART IV: GOVERNMENT SERVICE DELIVERY 4-65 Service Staff 7. Obtains the permit or letter of disapproval.

Applicant 8. Pays of and obtains the permit or receives the

letter of disapproval.

16.3 Explanatory Notes and Guidelines

Following are the explanations and guidelines on how to perform the foregoing procedures: 1. Obtains, fills out and submits an application form. The requirements that should

be attached to the application for an individual mining permit (SIPD and SIPD.PR) are as follows: a. Photocopy of the company's article of incorporation b. Copy of the Applicant’s identification card (KTP) c. Bank reference d. Letter stating the qualification of expert e. Map of requested mining area (not required if the permit is for

processing/purification and distribution) f. Statement of agreement to comply with environmental-management

regulations (for mineral exploitation) g. Proposed work plan (for exploration) h. Feasibility study (for exploitation) i. Letter of consent of land owner (if land is not owned by the Applicant land) j. Copy of business permit (for processing/purification and selling of minerals).

For a communal mining permit (SIPD PR), the following should be attached to the application form: a. Photocopy of the Applicant’s identification card (KTP) b. Sketch of mining area (for the exploitation) c. Letter of consent of the landowner (for exploitation) d. Recommendation from the concerned technical agency (for mining in the

river).

Applications for renewal or extension of the permit need to be accompanied by the following documents: a. Photocopy of the Applicant’s KTP b. Activity progress report, including illustrative maps/drawings (for exploitation

only) c. Official evidence of payment of tax liabilities d. Letter of consent from the landowner e. Copy of business permit (for processing/purification and marketing activities).

2. Inspects the completeness and accepts the application document. In brief, the

concerned UPTSA staff does the following: a. Receives the application document. b. Inspects the completeness of the document. c. Returns incomplete or improperly accomplished application form and





Besides, the Service staff submits the application and its supporting documents to the Head of Water-use and Class-C Mining Section.

3. Receives the application document and conducts a field survey. After receiving the application document, the Head of Water-use and Class-C Mining Section instructs to conduct a field survey with the related team to verify the condition of the Applicant’s business.

4. Prepares an Official Report, a draft permit or a letter of disapproval and computes

the permit fee. After the field survey, the Head of Water-use and Class-C Mining Section prepares an Official Report on a summary of findings and a recommendation as to whether the application should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the applicant. Finally, all the application and its supporting documents are submitted to the Head of Sub-Department of Environmental Benefit.

5. Approves or disapproves the application form. based on recommendations from

the Head of Head of Water-use and Class-C Mining Section, the Head of Sub-Department of Environmental Benefit approve or disapprove the application already prepared by the Team.


approves and signs the permit or letter of disapproval already signed with initials by the Head of Sub-Department of Environmental Benefit.

7. Obtains the permit or letter of disapproval. The Service staff obtains the signed

permits and notifies the Applicants of the status of their application, and, at the same time, the amount of permit fee to be paid, or their application is disapproved due to violate the existing criteria and guidelines.

8. Pays for and receives the permit or receives the letter of disapproval. Based on

the notification from the UPTSA staff, the Applicant pays for and obtains the permit or receives the letter of disapproval.

16.4 Sanction

Following are the applicable sanctions: 1. Imprisonment of not more than three months or a fine of not more than Rp

50’000.- for violation of any provision of existing regulation


PART IV: GOVERNMENT SERVICE DELIVERY 4-67 2. Revocation of permit due to the following:

a. The approved activity has not been started six month after the issuance of the permit, if the permit is for exploration and/or marketing and distribution.

b. The company has stopped operating for more than two years without any notification to the Department of Irrigation.

c. The permit holder violates the provisions of the permit. d. The permit holder violates existing regulations.



17 LOCATION PERMIT

17.1 Definition

Location Permit is an authorization for a company to acquire and use a piece of land in a certain location for the purpose of implementing an investment plan. Company is an individual or institution that has permission to make investments in Indonesia based on the existing regulation. Investment Company is an individual or institution that makes investments either or not using the facilities provided by PMA (Foreign Investment) / PMDN (Domestic Investment). The legal bases for the issuance of the permit include: a. The Regulation of the State Ministry for Agrarian Affairs/Head of the National

Land Agency No 2 / 1999 dated 10 February 1999 on Location Permit, and b. The Decree of the Regent No. 626/B/Kep/Bt/1999 dated 27 October 1999 on the

process Location Permit Issuance. The permit can be processed within 45 working days and is effective for a period of 1 year. Notes: A company that has already obtained an investment permit is obliged to have a

location permit to acquire a piece of land where it can make investments. For the agricultural business, the investment is limited to 25 ha and for non-

agricultural purposes, the investment is limited to one hectare. A sample computation of the cost of a Location Permit is shown in Annex N.


The process is graphically presented in Figure 4.17 and the procedures involved are briefly described as follows:



form.

Service Staff 2. Inspects the completeness of and accepts the application form, and prepares invitation for field inspection.



FIGURE 4.17 PROCESS FLOW CHART FOR THE ISSUANCE OF LOCATION PERMIT

SERVICE STAFFLOCATION PERMIT TEAM HEAD OF SUB-DEP'T OF LAND-


3. Accepts the application document, and invites the field inspection team.

2. Inspects the completeness of and accepts the application form, and prepares invitation for field inspection.



9. Obtains the signed location permit or letter of disapproval.

LAND AGENCY

7. Signs with initials the permit or letter of disapproval.

6. Conducts consultation and inspects the application document.


REGENT


5. Prepares an Official Report on the results of the field inspection.



PART IV: GOVERNMENT SERVICE DELIVERY 4-70 Location Permit Team 3. Accepts the application document, and invites

the field inspection team. 4. Conducts a field inspection. 5. Prepares an Official Report on the results of

the field inspection.

Head of Sub-Department of Land-in-authority Control

6. Conducts consultation and inspects the application document.

Head of Land Agency 7. Signs with his initial the permit or letter of disapproval.

Regent 8. Approves and signs the permit or letter of

disapproval.

Service Staff 9. Obtains the signed location permit or letter of disapproval.

Applicant 10. Pays for and obtains the permit or receives the

letter of disapproval.


The following is a detailed description of the procedure above: 1. Obtains, fills out, and submits an application form. Aside from filling out the form,

the Applicant is also required to attach the following supporting documents, each in triplicate: a. Company's article of incorporation b. Applicant's tax identification number (NPWP) c. Temporary site plan signed by the Applicant d. Project/investment proposal for which the land will be used e. Certification of ability to compensate present landowners through outright

purchase or replacement of land f. Approval of the project/investment proposal from appropriate government

authorities g. Certification of membership in the real estate developers' association (Real

Estat Indonesia or REI) if the proposed land is to be used for real estate development.

h. Certifies letter of agreement/approval from present landowners 2. Inspects the completeness of and accepts the application form, and submits it to

the Sub-Department of Land Acquisition and Land-Use Management. In brief, the concerned UPTSA staff does the following: a. Receives the application document. b. Inspects the completeness of the document. c. Returns incomplete or improperly accomplished application form and





Also, the Service staff arranges the field inspection schedule and invitation for the Location Permit Team, Land Agency.

3. Accepts the application document, and invites the field inspection team After receiving the application document, the Location Permit Team conducts a coordination meeting followed by a field inspection. The coordination meeting is attended by representatives from: a. Land Agency b. Assistant Tata Praja c. Local Development and Planning Board d. Department of Public Works e. Administrative Affairs Division f. Laws Division g. Other institutions related to the project. h. Local sub-district and village heads i. Persons authorized by the landowner

4. Conducts a field inspection. It is conducted by the Location Permit Team and the

related institution. The invitation at the same time serves as a mandate for the Team to conduct field inspection (survey). The Team verifies the accurateness of data or information on the physical condition of the land, land use and the environs of the location.

5. Prepares an Official Report on the results of the field inspection. After conducting

the field inspection, the Field Inspection Team then prepares a an Official Report on a summary of findings and a recommendation as to whether the application should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the applicant. Finally, all the application and its supporting documents are submitted to the Head of Sub-Department of Land-in-Authority Control.

6. Conducts consultation and inspects the application document. After receiving the

application document from the Location Permit Team, the Head of Sub-Department of Land-in-Authority Control re-inspects it and conducts coordination/consultation with the Team for further recommendations to the Head of Land Agency.

7. Signs with his initial the permit or letter of disapproval. Based on the results of

field inspection summarized into the Official Report, the Head of Land Agency sings with his initial the permit or letter of disapproval already prepared by the Location Permit Team.

8. Approves and signs the permit or letter of disapproval. The Regent approves the permit or letter of disapproval already signed with initials by the Head of Land Agency.

9. Obtains the signed location permit or letter of disapproval. The Service staff

obtains the permit or letter of disapproval signed by the Regent and submits it to the Applicant accompanied by the amount of the fee to be paid, or informs him that his application is disapproved due to the in contradiction with the existing criteria and guidelines.


PART IV: GOVERNMENT SERVICE DELIVERY 4-72 10. Pays for and receives the location permit or receives the letter of disapproval. On

the basis of the notification letter, the Applicant then goes to the UPTSA, pays for and receives the location permit, or receives the letter of disapproval.

17.4 Sanction

The permit may be revoked if the permit holder does not accomplish land acquisition within the permit's period of validity of one year. Violation of any of the provisions of the municipal ordinance may cause cancellation of the location permit.



18 NOTIFICATION/CLARIFICATION LETTER OF LAND ACQUISITION OR LAND-USE PLAN

18.1 Definition

Notification / clarification letter of land acquisition or land-use plan is an authorization given to an individual or an institution to acquire land for non-agricultural purposes of less than one hectare or for agricultural purposes of less than 25 hectares. The notification letter is addressed to the Head of the Department of Agrarian Affairs. The notification/clarification letter can be obtained in the Office of UPTSA located in Kompleks Parasamya Bantul Regency with telephone number (0274) 386343. The legal bases for issuing the notification letter include: 1. The Regulation of the Head of National Land Agency No. 2/1999 dated 10

February 1991. 2. The Regent’s Decree No. 626/Kep/Bt/1999 dated 27 October 1999. A sample computation of the cost for obtaining the land notification / clarification letter of land acquisition or land-use plan is presented in Annex O.

18.2 Procedures and Process Flow Chart The process diagram to obtain the land notification / clarification letter of land acquisition or land-use plan is presented in Figure 4.18 and briefly discussed as follows:


1. Obtains, fills out and submits an application form

Service Staff 2. Inspects the completeness of and accepts the application form, and prepares invitation for field inspection.

Licensing Team


4. Conducts a field inspection. 5. Prepares an official report, a draft permit or a

letter of disapproval and computes the permit fee.

Head of Sub-Department of Land-in-Authority Control

6. Conducts consultation/coordination and re-inspects the application document.

Head of Land Agency 7. Approves and signs the permit or letter of disapproval.

Service Staff




FIGURE 4.18 PROCESS FLOW CHART FOR THE ISSUANCE OF NOTIFICATION/CLARIFICATION LETTER OF LAND ACQUISITION OR LAND-USE PLAN

SERVICE STAFFLOCATION PERMIT TEAM HEAD OF SUB-DEP'T OF LAND-


3. Accepts the application document, and invites the field inspection team.

2. Inspects the completeness of and accepts the application form, and prepares invitation for field inspection.




LAND AGENCY


6. Conducts consultation/ coordination and re-inspects the application document.

9. Pays for and obtains the notification letter or receives the letter of disapproval.




PART IV: GOVERNMENT SERVICE DELIVERY 4-75 Applicant 9. Pays for and obtains the notification letter or

receives the letter of disapproval.

18.3 Explanatory Notes and Guidelines The following is a detailed description of the procedure above: 1. Obtains, fills out, and submits an application form. The Applicant goes to the

office of UPTSA to ask for a form of the notification/clarification letter. Aside from filling out the form, the Applicant is also required to attach the following supporting documents: a. Company's article of incorporation b. Applicant's tax identification number (NPWP) c. Temporary site plan signed by the Applicant d. Project/investment proposal for which the land will be used e. Certification of ability to compensate present landowners through outright

purchase or replacement of land f. Approval of the project/investment proposal from appropriate government

authorities g. Certification of membership in the real estate developers' association (Real

Estat Indonesia or REI) if the proposed land is to be used for real estate development.

h. Certifies letter of agreement/approval from present landowners 2. Inspects the completeness of and accepts the application form, and prepares

invitation for field inspection. In brief, the concerned UPTSA staff does the following: a. Receives the application document. b. Inspects the completeness of the document. c. Returns incomplete or improperly accomplished application form and



Also, the Service staff arranges the field inspection schedule and invitation for the Licensing Team, Land Agency.

3. Receives the application document and invites the Field Inspection Team. After

receiving the application document, the Location Permit Team conducts a coordination meeting followed by a field inspection.

4. Conducts a field inspection. It is conducted by the Location Permit Team and the

related institution. The invitation at the same time serves as a mandate for the Team to conduct field inspection (survey). The Team verifies the accurateness of data or information on the physical condition of the land, land use and the environs of the location.

5. Prepares an Official Report on the results of the field inspection. After conducting

the field inspection, the Field Inspection Team then prepares a an Official Report on a summary of findings and a recommendation as to whether the application



should either be processed, returned together with an explanation pertaining to adjustments to be made, or approved; or it is disapproved due to violate any of the existing criteria and guidelines. Afterwards, he prepares a draft permit or a letter of disapproval and at the same time computes the permit fee to be paid by the applicant. Finally, all the application and its supporting documents are submitted to the Head of Sub-Department of Land-in-Authority Control.

6. Conducts consultation and inspects the application document. After receiving the

application document from the Location Permit Team, the Head of Sub-Department of Land-in-Authority Control re-inspects it and conducts coordination/consultation with the Team for further recommendations to the Head of Land Agency.

7. Signs the permit or letter of disapproval. Based on the results of field inspection

summarized into the Official Report, the Head of Land Agency sings with his initial the permit or letter of disapproval already prepared by the Licensing Team.

8. Obtains the signed location permit or letter of disapproval. The Service staff

obtains the permit or letter of disapproval signed by the Regent and submits it to the Applicant accompanied by the amount of the fee to be paid, or informs him that his application is disapproved due to the in contradiction with the existing criteria and guidelines.

9. Pays for and receives the location permit or receives the letter of disapproval. On

the basis of the notification letter, the Applicant then goes to the UPTSA, pays for and receives the location permit, or receives the letter of disapproval.



19 Water Supply Connection

19.1 Definition The water supply system referred to here is the one being managed by the Local Water Enterprise (PDAM) of Bantul Regency. To connect to the system, one needs to submit an application for service connection addressed to the Managing Director of PDAM, Jalan Dr. Wahidin Sudirohusodo No. 83 Bantul 55711, Telp. (0274) 367524. The procedures for connecting to the water supply system and becoming a customer of PDAM are spelled out in the Decree of the Regent No. 559/Kep/B/1997. As long as the customer fulfills all the requirements and his obligations, the water supply connection will not be disconnected. The fee to be paid for the house connection is Rp 450’000.- (four hundred and fifty thousand rupiah) with the following systems: 1. Payment in cash; or 2. Payment by installments (four times in four months) as follows:

a. Down payment : Rp 250’000.- b. Installment I : Rp 50’000.- c. Installment II : Rp 50’000.- d. Installment III : Rp 50’000.-

House connection payment can be served from the 1st to the twentieth day in local BRI (Bank).

19.2 Procedures and Process Flow Chart The process for obtaining the water-service connection is graphically presented in Figure 4.19. The procedures are described as follows:



form.

Head of Public/Customer Relation Division

2. Inspects the completeness of and accepts the application.

3. Submits the application to the Head of Technical Planning Division.

Field Inspection (Technical Planning Division)

4. Conducts a field inspection of the proposed installation site.

5. Computes the cost of installing the service connection.

Head of PDAM Branch Office 6. Formally approves or disapproves the

application.



FIGURE 4.19 PROCESS FLOW CHART FOR OBTAINING WATER SUPPLY SERVICE CONNECTION

PUBLIC/CUSTOMER RELATIONSDIVISION

TECHNICAL PLANNING DIVISION(FIELD INSPECTION TEAM) HEAD OF PDAM BRANCH OFFICE

3. Submits the application to the Head of Technical Planning Division

2. Inspects the completeness of and accepts the application.


4. Conducts a field inspection of the proposed installation site.

APPLICANT DISTRIBUTION DIVISION

8. Installs the service connection.

7. Pays for the cost of installing the service connection.

START

5. Computes the cost of installing the service connection.

6. Formally approves or disapproves the application.

9. Prepares an accomplishment report on the installation of new connection.


PART IV: GOVERNMENT SERVICE DELIVERY 4-79 Applicant 7. Pays for the cost of installing the service

connection.

Distribution Division 8. Installs the service connection. 9. Prepares an accomplishment report on the

installation of new connection.


Following are explanations and guidelines on how to perform the foregoing procedures: 1. Obtains, fills out, and submits an application form. The application form can be

obtained at the reception area of PDAM's main office. To be attached to the accomplished form are a photocopy of the Applicant's identification card and an endorsement letter signed by the heads of neighborhood associations (RT and RW).

2. Inspects the completeness of and accepts the application. The PDAM staff

inspects the completeness of the application, and informs the Applicant of any missing information or document.

3. Submits the application to the Technical Planning Division. Applications that have

been accepted are then passed on to the office of the Head of the Technical Planning Division.

4. Conducts a field inspection of the proposed installation site. On the basis of the

application, the Field Inspection Team at the Technical Planning Division visits the proposed site of the proposed new service connection. The visit is meant to ascertain whether the site can be served by PDAM's present distribution network. The team then prepares a recommendation as to whether the application should be approved or disapproved.

5. Computes the cost of installing the service connection. If its recommendation is to

approve the application, the team then computes the cost of installing the new service connection. The application, the team's recommendation, and the computed cost are then submitted to the Head of PDAM Branch Office.

6. Formally approves or disapproves the application. On the basis of the

recommendation of the Field Inspection Team, the Head of PDAM Branch Office then approves or disapproves the application.

7. Pays for the cost of installing the service connection. On the basis of the

information from PDAM, the Applicant pays for the installation cost. 8. Installs the service connection. A working team from the Distribution Division

installs the new service connection.


PART IV: GOVERNMENT SERVICE DELIVERY 4-80 9. Prepares an accomplishment report on the installation of new service connection.

The report is counter-signed by the new customer. A copy of the report is furnished to the Public/Customer Relations Division as basis for, among others, issuance and collection of monthly water bills.

19.4 Sanction

Fine of Rp 2’500.- for every month of delay in the payment of the monthly water bill.

19.5 Payment The payment is carried out in a local unit of BRI (Bank of Republic of Indonesia) from 1st to 20th of every month.


PART V: URBAN MANAGEMENT 5-1

PART V: URBAN MANAGEMENT 5

•

To give proper direction to urban development, local governments need to perform six inter-related urban management key functions, which form a logical cycle of interventions. These functions are the formulation of a development agenda or strategy, long-term planning, medium-term programming, implementation, operation and maintenance, and monitoring and evaluation. The three support functions of institutional development, human resources development, and the development of instruments and resources ensure that each key function is performed satisfactorily and progresses logically into the next key function. This part of the Handbook is dedicated to the processes and procedures involved in performing each of the key and support functions. The coverage is not meant to be comprehensive, but is rather meant to focus on those that are crucial to each of the functions. They have been designed taking into account the demands of transparency and accountability as inherent aspects of good governance as well as the roles and responsibilities of the community, particularly the civil society, and the private sector in running the affairs of the government. The entire cycle is viewed as part and parcel of ongoing efforts toward democratization and the practice of good governance. The participation of the urban community at large from the very beginning of the process cannot, therefore, be overemphasized. For this purpose, the processes and procedures that have been conceived, as discussed in this section, integrate the necessary mechanism for ensuring a participatory mode of urban management consisting of the following elements:

A representative functional organization responsible for undertaking each of the urban management functions. In the past, urban management was largely an affair of the executive branch of the government, be it national, provincial or local. Representative here means that all identifiable interests/interest groups in the urban community are represented in the functional organization responsible for performing the functions. Aside from key officials of the executive branch of the local government, membership in the said functional organization shall include members of the local parliament as well as distinguished community, private-sector, and academic personalities.

An improved bottom-up planning process. Under present regulations there exist formal procedures for identifying community needs and aspirations and integrating them into the yearly program of the local government as part of the Rakorbang process. At the village level, Musbang or Musyawarah Pembangunan, and in the sub-district level, Temu Karya are held each year to consider proposals from community groups. The process can certainly stand certain improvements, including the reduction of the undue influence of the government bureaucracy over the whole process and the corresponding added emphasis on the role of community members. Community-empowerment measures will therefore be an inherent feature of this approach.

•

Formalized and institutionalized public hearing. Public hearing is deemed as one of the fastest ways by which public opinion may be heard and an effective forum where public issues can be deliberated. In the whole scheme, public hearing is considered

•



an important mechanism for gathering views of the public at large, not only those that are represented in the functional organizations mentioned in the foregoing.

The presentation follows the logical sequence of the six urban management key functions, starting from development agenda/strategy formulation to monitoring and evaluation. The three support functions are then combined in what has now come to be known as institutional capacity building.



1 FORMULATION OF DEVELOPMENT AGENDA The formulation of a development agenda is considered here as a major undertaking, if not in terms of the volume of work that is involved, then in terms of the significance of the result of the effort: the development agenda would affect the fate of an entire population at least during the medium-term, while its repercussions may be felt for many years to come. Formulation of development agenda consists of following steps:

Organizing for the activity • • • •

Formulation of Draft Development Agenda Establishment of evaluation criteria and prioritization for investment packages Conduct of public hearing and finalization of Development Agenda

1.1 Organizing for the Activity

1.1.1 Definition

Organizing for the activity here means the distribution of responsibilities, the clarification of expectations, and the delineation of line of accountabilities for the formulation process. In accordance with the present organization structure of local governments, the Municipal Development Planning Board (Badan Perencanaan Pembangunan Daerah or Bappeda) shall take the lead in the formulation process. It is, however, emphasized here that policy guidelines need to be provided by the local poliical leadership, especially the mayor/or regent as well as the chairman and key members of the local legislative council. It is assumed that the formulation of the development agenda is a participatory process marked by the active involvement of other development stakeholders, particularly the community and private sector. The organization for the formulation process therefore needs to be able to accommodate such involvement.

1.1.2 Procedures and Process Flow Chart The tasks comprising the step are depicted in a process flow in Figure 5.1 and briefly enumerated as follows: Actor Procedure Bappeda 1. Prepares, presents, and finalizes a work plan. Mayor/Regent and Local Legislative Council 2. Approves the work plan. Bappeda 3. Identifies participants from the executive branch of

the local government. 4. Identifies participants from the local legislative

council.


PART V: URBAN MANAGEMENT 5-4 FIGURE 5.1 PROCESS FLOW CHART FOR ORGANIZING FOR THE

FORMULATION OF THE DEVELOPMENT AGENDA

MAYOR/REGENT ANDLOCAL LEGISLATIVE COUNCIL BAPPEDA

4. Identifies participants from the local legislative council.

START

2. Approves the work plan. 1. Prepares, presents, and finalizes a work plan.

3. Identifies participants from the executive branch of the local government.

5. Identifies participants from the community and the private sector.

6. Establishes the functional organization that will be responsible for the activity.

7. Prepares the legal framework for the functional organization.

9. Orients the functional organization.

8. Approves the legal framework.

5. Identifies participants from the community and the

private sector.

6. Establishes the functional organization that will be responsible for the activity.

7. Prepares the legal framework for the functional

organization. Mayor/Regent and Local Legislative Council 8. Approves the legal framework. Bappeda 9. Orients the functional organization.

1.1.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for accomplishing the tasks are as follows: 1. Prepares, presents, and finalizes a work plan. The work plan can be likened to the

terms of reference. It could be less elaborate, but should at least define the interim and final outputs of the activity, the approach and methodology to be followed, the



specific tasks to be undertaken, the responsibilities of each involved person/party, and the timetable for undertaking the various tasks included in the activity. Since the budget allocation for the activity has presumably been already approved beforehand, then its more detailed breakdown, may be included. The work plan should then be presented to key officials of the executive and legislative branches of the Regency of Bantul.

2. Approves the work/activity plan. The development agenda encompasses both

general policies and specific programs. As such, both the legislative and executive branches of government should share the responsibility for its formulation. In the same token, the work plan needs to be approved by both the mayor/regent, representing the executive branch, and the chairman of the local legislative council, to show the joint commitment of these two branches of government.

3. Identifies participants from the executive branch of the local government. On the

basis of the work plan, Bappeda identifies officials and staff of the local government who should involved in the formulation process. In the past, the involvement of these staff members is at two levels: policy setting and program preparation.

4. Identifies participants from the local legislative council. Officials and members of the

legislative council will basically be involved at the policy-setting level. For maintaining the non-partisan nature of the activity, it would be advisable to invite heads of the various commissions. Another possibility is that the chairman of the local parliament himself selects the representatives to be the members of the Functional Organization. This activity can be done together with the activities 4, 5 and 6.

5. Identifies participants from the community and the private sector. Participants from

the executive and legislative branches could create a core group, which will then select participants from the community and private sector. It is suggested that the full spectrum of vested interests within the community be represented, including businessmen and business groups, non-government organizations, academic institutions, and the like. Representation should however be balanced with the manageability of the resulting group.

6. Establishes the functional organization that will be responsible for the activity. The

functional organization that has been used in the past, and which most local governments are familiar with consists of three levels: the Steering Committee, which formulates the general development policies; the Technical Team, which translates the policies into broad development programs; and the Working Groups, which translates the programs into specific actions or investment projects/packages. A sample structure of the functional organization is in Figure 5.2. At this point, however, it should be noted that only development policies will be formulated as the preparation of programs and projects is covered by another set of succeeding processes and procedures. Only the Steering Committee will therefore be heavily involved, although inputs may have to be provided by the technical team. Furthermore, this type of organization may be maintained for undertaking other urban development functions as well, such as medium-term programming and annual budgeting.



FIGURE 5.2 SAMPLE OF FUNCTIONAL ORGANIZATION FOR THE FORMULATION OF DEVELOPMENT AGENDA

TECHNICAL TEAM

MAYOR/REGENT CHAIRMAN OF LOCALLEGISLATIVE

STEERING COMMITTEE

WORKING GROUPS

LOCAL LEGISLATIVECOUNCIL

COMMUNITY GROUPS

PRIVATE-SECTORGROUPS

REGEIONALDEVELOPMENT

PLANNING BOARD

DEPARTMENTS/DIVISIONS/OFFICES

As to membership, the Steering Committee is usually composed of the heads of local government agencies, heads of legislative commissions, and community and private-sector representatives of relatively the same level or stature. The Technical Team is composed of section and sub-division heads, and the Working Groups, of lower level staff. It is the usual practice though for the members of the Technical Team to be distributed as members of the various working groups. There can be as many working groups as there are topics or areas to be covered by the development agenda and the medium-term investment program that comes after it.

7. Prepares the legal framework for the functional organization. The legal framework is

a decree of the mayor/regent. 8. Approves the legal framework. With the involvement of members of the legislative

council as well as community and private-sector representatives, it might be necessary that the decree is also approved by the local legislature through what is known as Persetujuan Dewan.

9. Orients the functional organization. On the basis of the work plan and the approved

legal framework, Bappeda then conducts orientation sessions for all the members of the functional organization, most notably at this point the members of the Steering Committee.

1.2 Formulation of Draft Development Agenda

1.2.1 Definition

The development agenda is taken to mean here as an overarching direction or intention of development. It consists basically of a long-term development vision and medium-term RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005

PART V: URBAN MANAGEMENT 5-7 strategic objectives. For translating the agenda into an implementable investment program, however, programming and financing policies as well as investment selection and evaluation criteria are provided as complementary instruments. Under existing government regulations, the overall direction for national development during the next five years is first embodied in the General State Policy Guidelines (Garis Besar Haluan Negara or GBHN) enacted by the People’s Consultative Assembly as a mandate to the incumbent administration. GBHN is then translated into policy guidelines (Pola Dasar or Poldas) at the provincial and municipal levels. These sets of policy guidelines then become the basis for formulating development programs at the national (Program Pembangunan Nasional or Propenas), provincial (Program Pembangunan Daerah or Propeda Propinsi), and municipal (Propeda Kabupaten/Kota) levels.

1.2.2 Procedures and Process Flow Chart The process flow chart for the activity is shown in Figure 5.3. They are briefly enumerated as follows: Actor Procedure Bappeda 1. Studies existing references.

2. Formulates tentative vision statement.

3. Formulates tentative medium-term strategic objectives.

4. Presents the vision statement and medium-term

strategic objectives to the Steering Committee.

FIGURE 5.3 PROCESS FLOW CHART FOR FORMULATING THE DRAFT DEVELOPMENT AGENDA

REGENT STEERING COMMITTEE

7. Presents vision, objectives, and policies to local government.

START

8. Approves in principle the vision, objectives, and policies.

5. Prepares draft final version of vision and strategic objectives.

6. Prepares recommended financing and programming policies.

BAPPEDA

1. Studies existing references.

2. Formulates tentative vision statement.

3. Formulates tentative medium-term strategic objectives.

4. Presents vision and strategic objectives to Steering Committee.


PART V: URBAN MANAGEMENT 5-8 Steering Committee 5. Reviews and prepares the draft final version of the

vision statement and medium-term strategic objectives.

6. Prepare recommended investment programming

and financing policies.

7. Presents the vision statement, the strategic objectives, and the programming and financing policies to the local government and key officials of the local legislative council.

Mayor/Regent 8. Approves the vision statement, the strategic

objectives, and the programming and financing policies in principle.


The explanatory notes and guidelines for undertaking the procedures are as follows: 1. Studies existing references. Various references can be used in formulating a

coherent development vision, including the Propenas and Propeda, existing master spatial and infrastructure master plans, vision of sub district, local main data, as well as assessments of existing conditions. This activity can be done together with activity 2 and 3.

2. Formulates tentative vision statement. A vision statement is coherent expression of

what the local government wants to achieve over the long-term, say within a 20 - to 25 - year time horizon. It describes desired conditions pertaining to, among others, level of citizens' welfare, state of the natural environment, stage of economic development, quality of governance and delivery of government services, and the like. There is no single or 'cut-and-dried' formula for formulating a vision. One general guideline, however, is that it should catch the imagination of the local government's constituencies and be able to rally their support toward its achievement. This activity can be done together with activity 1 and 3.

3. Formulates tentative medium-term strategic objectives. Strategic objectives are

targets that the local government plans to achieve during the medium-term that will bring it closer to the realization of the vision. At least one objective for each area of concern, such as economic, social, cultural, political, environmental, spatial, infrastructure, and institutional development should be provided. This activity can be done together with the activities 1 and 2.

4. Presents the vision statement and medium-term strategic objectives to the Steering

Committee. The objective of the presentation is to reach a consensus among the members of the Steering Committee as to the validity of the vision and strategic objectives viewed by persons representing different interests.


5. Reviews and prepares the draft final version of the vision statement and medium-term strategic objectives. Once a consensus is reach among the members of the Joint Secretariat, then vision and the strategic objectives achieves the status of final draft. As will be discussed later, this version will still have to undergo a long process before it is finalized.

PART V: URBAN MANAGEMENT 5-9 6. Prepares recommended investment programming and financing policies.

Programming policies are general definitions of what types of activities need to be undertaken to achieve the strategic objectives. Financing policies, on the other hand, shall set the financial boundaries within which the activities can be undertaken.

7. Presents the vision statement, strategic objectives, and programming and financing

policies. The presentation is basically meant for the head of the local government (mayor/regent). Key officials of the legislative council as representatives of community and private-sector groups may already be invited in line with the desire to make the agenda formulation a participatory process all throughout.

8. Approves the vision statement, the strategic objectives, and the programming and

financing policies. What is sought here is an approval in principle, signaling that the local government is ready to accept and implement the vision and strategic objectives as well as the programming and financing policies resulting from them, subject to the successful completion of the succeeding processes leading to their finalization. It would also signify the local government's authorization for the Steering Committee to proceed to the next step.

1.3 Establishment of Investment Evaluation and Selection Criteria

1.3.1 Definition

The criteria are the translation of the strategic objectives of the development agenda into verifiable standards against which investment project proposals can be identified, evaluated, and finally selected for implementation. They form the basis for the actual prioritization of projects within a sector and across sectors. They should enable not only the pruning down of projects due to funding limitations, but also the judicious use of available funding and thus the exclusion of what might be called “nice to have” projects even when funding is available.

1.3.2 Procedures and Process Flow Chart The process flow chart for undertaking the activity is shown in Figure 5.4. The various tasks that will be undertaken are enumerated as follows: Actor Procedure Bappeda 1. Orients the Technical Team on the vision,

strategic objectives, and programming and financing policies.

Technical Team 2. Identifies measures that express the intention of

each strategic objective. 3. Identifies the sources of information on each

measure.

4. Assigns weights to and define the application of each measure.



5. Presents the investment selection and prioritization criteria to the Steering Committee.

Steering Committee 6. Approves the investment selection and

prioritization criteria. FIGURE 5.4 PROCESS FLOW CHART FOR FORMULATING INVESTMENT

SELECTION AND PRIORITIZATION CRITERIA

STEERING COMMITTEE TECHNICAL TEAM

4. Assigns weights to and defines the application of each measures.

START

1. Orients the Technical Team on the vision, objectives, and policies.

2. Identifies measures that express the intention of each strategic objectives.

3. Identifies sources of information on each measure.

5. Presents the criteria to the Steering Committee.

6. Approves the investment selection and prioritization criteria.

1.3.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the tasks comprising the activity are as follows: 1. Orients the Technical Team on the vision, strategic objectives, and programming and

financing policies. On behalf of the Steering Committee, Bappeda or other institution meets with the Technical Team and explains the vision, strategic objectives, and programming and financing criteria.

2. Identifies measures that express the intention of each strategic objective. Each

strategic objective is translated into verifiable/measurable benchmarks for evaluating project proposals. This activity can be done together with the activities 3 and 4.

3. Identifies the sources of information on each measure. This is to make sure that

relevant information is available and can either be included in the project proposal or accessed during the project evaluation and selection process. The information also consists of impacts, inputs, outputs and outcome of each measure. This activity can be done together with the activities 2 and 4.

4. Assigns weights to and define the application of each measure. Different degrees of

importance may be assigned to different measures. At the same time, the application of the measures, for example the use of a point system, should be clarified. If practical, a manual or handbook for project evaluation and selection should be



prepared. This activity can be done together with the activities 2 and 3. 5. Presents the investment selection and prioritization criteria to the Steering

Committee. The investment selection and prioritization criteria are presented to the Steering Committee for approval in principle.

6. Approves the investment selection and prioritization criteria. Similarly, the approval

here is basically meant to signify that the criteria may already be used for the next stage in the process.

1.4 Conduct of Public Hearing and Finalization of the Agenda

1.4.1 Definition

Public hearing has the dual purpose of ensuring that the agenda conforms with the needs and aspirations of the majority, if not all, of the segments of the society and starting the mobilization of grassroots support for the implementation of the agenda. In this context, public hearing is used as an instrument for advancing the cause of good governance, particularly the requirements of transparency and accountability.

1.4.2 Procedures and Process Flow Chart The process flow chart graphically depicting the activity is shown in Figure 5.5. The tasks involved are enumerated as follows: Actor Procedure Bappeda 1. Prepares a public hearing plan.

2. Publicizes the vision, strategic objectives, programming and financing policies, and project evaluation and selection criteria.

3. Invites participants to the public hearing.

4. Organizes a panel of experts.

Steering Committee 5. Conducts the public hearing.

6. Refines the vision statement, strategic objectives, and programming and financing policies.

Technical Team 7. Refines the investment evaluation and selection

criteria. 8. Consolidates the development agenda and

submits to the Local Parliament through the Regent.



FIGURE 5.5 PROCESS FLOW CHART FOR CONDUCTING A PUBLIC HEARING AND FINALIZING THE DEVELOPMENT AGENDA

LOCAL LEGISLATIVE

COUNCIL BAPPEDA STEERING COMMITTEE


START

5. Conducts the public hearing.

6. Refines/revises the vision, objectives and policies.

8. Consolidates the development agenda and submits to the Local Parliament through the Regent.

TECHNICAL TEAM

7. Refines/revises the evaluation and selection criteria.

10. Publicizes the agenda, policies, and criteria.

9. Enacts local regulation adopting the development agenda.

1. Prepares a public hearing plan.

2. Publicizes the development agenda, policies and criteria.

4. Organizes a panel of expert.


PART V: URBAN MANAGEMENT 5-13 Local Legislative Council 9. Enacts a local regulation formally adopting the

vision, strategic objectives, programming and financing policies, and project evaluation and selection criteria.

Bappeda 10. Publicizes the final vision, strategic objectives,

programming and financing policies, and project evaluation and selection criteria.


The explanatory notes and guidelines for undertaking the tasks are as follows:

1. Prepares a public hearing plan. The plan should include not only the conduct of the public hearing itself, but also the preparation and dissemination of background information as well as the follow-up to the public hearing, such as how to adopt and use its results. This activity can be done together with the activities 2, 3 and 4.

2. Publicizes the agenda and the project evaluation and selection criteria. One of the

major components of the preparation for the public hearing is the dissemination of information that will serve as basis for informed opinion among the public. The information to be disseminated should include the bases of as well as the urban development agenda and the project evaluation and selection criteria themselves. Various vehicles for information dissemination could be used, including mass media and small-group discussions. This activity can be done together with the activities 1, 3 and 4.

3. Invites participants to the public hearing. Representatives of community and private-

sector interests groups are identified and invited to participate in the public hearing. Priority is given to those who are foreseen as going to be most affected by the agenda. This activity can be done together with the activities 1, 2 and 4.

4. Organizes a panel of experts. The panel of experts will serve, as it were, a mediator

between the government, as the proponent of the agenda, and the public at large. It has the responsibility of rendering objective opinion based on the fields of disciplines or expertise of its members that can serve as basis for resolving contentious issues regarding the agenda and the selection criteria. This activity can be done together with the activities 1, 2 and 3

5. Conducts the public hearing. The public hearing will be presided by the Steering

Committee of each local government, in case of separate public hearings. The provincial Steering Committee is proposed to preside if a common public hearing is held instead. The proceedings of the hearing shall be completely recorded, and shall consist of, among others, presentations of the highlights of the urban development agenda and selection criteria, comments and reactions from the participants, and summation and conclusion.

6. Refines/revises the vision statement, strategic objectives, and programming and

financing policies. On the basis of the results of the public hearing, the Steering Committee then makes the necessary adjustment to the long-term development vision, medium-term strategic objectives, and programming and financing policies. It then passes these on to the Technical Team.


PART V: URBAN MANAGEMENT 5-14 7. Refines the investment evaluation and selection criteria. The Technical Team revises

the investment evaluation and selection criteria to reflect the revisions made on the vision, objectives, and policies.

8. Consolidates the development agenda. Consolidating here means to integrate all

elements of development agenda that have revised and become feasible to have a legal basis.

9. Enacts a local regulation formally adopting the urban development agenda and the

project evaluation and selection criteria. Based on a proposal from the Steering Committee, the local parliament shall enact a local regulation to formally adopt the urban development agenda and the selection criteria.

10. Publicize the final urban development agenda and project evaluation and selection

criteria. The local regulation as well as the final urban development agenda and project evaluation and selection criteria are disseminated. The working groups, concerned local government agencies, as well as community and private sector groups should be oriented on how to apply them.



2 LONG-TERM PLANNING

2.1 Definition

Based on a comprehensive Urban Development Strategy, long-term urban planning articulates the technical, managerial and financial development framework for specific urban functions, urban space, urban infrastructure and urban management. The outputs of this are long-term masterplans, which provide the basis for preparing the Medium-term Investment Program by government, community and private sector. Range of master plans. The comprehensive Urban Development Strategy covers the whole province of DIY, and shows the relations between urban functions, urban space to accommodate these functions, urban infrastructure to serve these functions, urban management to coordinate the development of functions, space and infrastructure. Within this context, each local government formulates the following range of Master Plans: • Function : Economic Master Plan

Social Master Plan Cultural Master Plan Environmental Master Plan

• Space : Urban Agglomeration Master Plan Urban Land Use and Zoning Plan

• Infrastructure : Road and Transportation Master Plan Housing and Urban Renewal Master Plan Water Supply Master Plan Sewerage and Sanitation Master Plan Drainage Master Plan Solid Waste Management Master Plan

• Management : Institutional Development Master Plan Human Resources Development Master Plan Financial Revenues Development Master Plan

Master-plan format. Although each master plan contains an entirely different subject matter, all master plans follow the same logic in order to make them mutually compatible. This logic is reflected in the format as follows: • Planning context, comprehensive urban development strategy • Profile of existing conditions, assessment of need and demand • Vision on the future, development concepts and targets • Strategy for the realization of the vision, phasing scheme • Technical framework, basic principles, primary systems, design standards • Managerial framework, implementation, operation and maintenance, service delivery • Financial framework, cost, and financial and economic feasibility • Environmental impact assessment

2.2 Process and Procedures Chart of the procedures and process is presented in Figure 5.6. The tasks are summarized as follows:


PART V: URBAN MANAGEMENT 5-16 Actor Procedure Steering Committee 1. Mobilizes Master Plan Task Force Task Force 2. Conducts structured interviews with stakeholders

to assess the needs and demands.

3. Conducts field surveys to assess the existing conditions, capacity, and performance of supply.

4. Compares demand and supply to set development

targets

5. Prepares draft Master Plan and submit it to the Steering Committee.

6. Synchronizes the master plan with other local

governments especially regarding cross boundary issues.

Steering Committee 7. Conducts a public hearing/workshop.

8. Prepares the Final Master Plan and presents to local government.

Mayor/Regent 9. Submits the Master Plan to the Local Parliament

for approval. Local Parliament 10. Establishes a legal basis of the Master Plan.

2.3 Explanatory Notes and Guidelines Explanation and description for implementation of the task mentioned above, tasks are as follows: 1. Mobilize Master Plan Task Force responsible to local government. Head of local

government issues a Term of Reference, including time frame and budget, and mandates Steering Committee to establish a Task Force to formulate a Master Plan. The Task Force includes representatives of concerned Local Government agencies, of Local Assembly and of Consultants.

2. Conducts structured interviews with stakeholders to assess need and demand.

Questionnaires are prepared to conduct structured interviews, while field observations are used to crosscheck the response to the questionnaires. The response provides information on priority needs, and the affordability and willingness to pay for it. The output is a Real Demand Study. Based on observed trends, projections are made of future need and demand.



FIGURE 5.6 FLOW CHART OF LONG-TERM PLANNING

LOCAL PARLIAMENT MAYOR/REGENT STEERING COMMITTEE

START

1. Mobilizes Master Plan Task Force.

7. Conducts a public hearing or a workshop.

8. Prepares Final Master Plan and presents it to the local government.

TASK FORCE

2. Conducts a structured interview with stakeholders.

10. Establishes a legal basis for the Master Plan.

9. Submits the Master Plan to Local Parliament

3. Conducts field surveys to assess the existing conditions, capacity, and supply.

4. Compares supply and demand.

5. Prepares the draft Master Plan and conveys it to the Steering Committee.

6. Synchronizes the Master Plan with other local governments regarding cross boundary issues.


PART V: URBAN MANAGEMENT 5-18 3. Conducts field surveys to assess conditions, capacity, performance of supply. Field

surveys are conducted to complement the available data and information, and further assessment is made of technical conditions and capacity, of managerial and financial performance of the urban function and/or of present infrastructure system, which are covered in the scope of Master Plan.

4. Compares demand and supply to set the development targets. By comparing the

results of Step 2 and Step 3, inconsistencies between demand and supply can be identified in terms of sustainability, affordability, access to, and quality of, services. The development targets are based on the need to match demand and supply, and to expand supply based on future demand.

5. Prepares draft Outline Plan to optimize, expand or replace the existing system. The

Outline Plan to emphasizes basic principles, primary systems, and design standard. The outline plan format is applied, but in a brief format.

6. Synchronizes the master plan with other local governments regarding cross

boundary issues. The master plan needs to be synchronized with the other master plans of the other local governments in order to become a comprehensive system.

7. Conducts public hearing/workshop. The public hearing will be preceded by

publications in the mass media, exhibition and a visual presentation of the draft master plan. Technical and bureaucratic jargons should be avoided, as it may confuse the public. Attendants to the public hearing are invited to ask questions and clarifications, to give comments and suggestions, both in discussion and in written notes. The output of the public hearing will be published as official minutes of meeting.

8. Prepares Final Master Plan and presents it to the local government. The Final Master

Plan will be prepared based on the public hearing/workshop output. The document will then be presented in a meeting chaired by Regent/Mayor.

9. Submits Final Master Plan to Local Parliament for approval. The Final Master Plan

will be submitted to the Local Parliament for evaluation, discussion and for approval. 10. Establishes legal basis for Master Plan. The legal basis of the Master Plan is

suggested to be in the form of local regulation.



3 MEDIUM-TERM PROGRAMMING

3.1 Preparation of Long List of Investment Packages

3.1.1 Definition Medium-term programming is the translation of the agenda, which basically is conceptual in nature, into concrete actions or investment packages. The consolidation of these packages into a coherent development program can be considered, as it were, a medium-term agenda. The process is not really novel, having been introduced way back in 1985 as part of the IUIDP approach (integrated urban infrastructure development program). Under the approach, the process results into a medium-term investment program then called Program Jangka Menengah or PJM. As implied by its name, the program was predominantly focused on infrastructure development. Changes in regulations, the continuing endeavor to rectify the shortcomings of the approach, as well as the present demands for adherence to the principles of good governance have made it necessary the adopt new ways of accomplishing the tasks involved. It will however have to remain consistent with the core concepts of IUIDP, namely bottom-up integrated multi-sectoral and multi-year investment programming. Within the framework set by the development agenda and the evaluation and selection criteria, two general types of investment packages will be prepared. One type will be what might be called area-based packages and the other, sector-based. The formulation of the area-based packages will basically follow the existing mechanism for bottom-up planning (Musbang and Muker at respectively the village and sub-district levels) and will thus pertain to area-specific needs. The formulation of sector-based project proposals will be initiated by local technical service departments with reference to the specific requirements of the sector. The same references as those used in the formulation of the development agenda will be used here. First screening of projects will be done to ensure that all project proposals conform with the aforementioned agenda and criteria. Area-based and sector-based proposals will be compared and validated against each other to avoid duplication and allow for integration, whenever possible. Initial inter-sectoral and inter-municipal coordination, integration, and synchronization will be undertaken primarily by the Joint Secretariat. A long list, as its name implies, is an enumeration of specific investments that need to be undertaken to achieve the medium-term strategic objectives. It includes all those that by preliminary examination conform with the programming and financing policies and satisfy the investment evaluation and selection criteria. Investment packages are classified by sector or type of program. The number of types of programs that are included entirely depends on the strategic objectives that need to be accomplished. Each investment package is provided with a financing plan indicating the sources of funds needed for its implementation. Investment here is taken to mean not only as a financial outlay, but also the allocation of time and effort. Thus, certain actions need not require financing to be implemented.

3.1.2 Procedures and Process Flow Chart The process flow chart for the activity is presented in Figure 5.7, and the component tasks are enumerated as follows:


PART V: URBAN MANAGEMENT 5-20 Actor Procedure Technical Team 1. Develops a standard format for investment

proposals. 2. Orients the Working Groups on the format. Working Group 3. Reviews existing references. 4. Formulates area-based investment packages. 5. Formulates sector-based investment packages. Technical Team 6. Screens investment packages. 7. Compares and validates investment packages.

FIGURE 5.7 PROCESS FLOW CHART FOR PREPARING THE LONG LIST

TECHNICAL TEAM WORKING GROUP

5. Formulates sector-based investment packages.

START

1. Develops a standard format for investment proposals. 3. Reviews existing references.

4. Formulates area-based investment packages.

2. Orients the Working Groups on the format.

6. Screens investment packages.

7. Compares and validates investment packages.


The explanatory and guidelines for undertaking the various steps are as follows: 1. Develops a standard format for project proposals. To allow for easy comparability, a

standard format for investment packages is to be developed. The format shall be as close as possible to the existing format being used by the local government for preparing the annual project proposals (Daftar Usulan Proyek or DUP) during the Rakorbang process. The format shall contain, to the extent possible, the information required by the project evaluation and selection criteria.

2. Orients the Working Groups on the format. The Working Groups as well as

concerned local government agencies and prospective proponents from the community and the private sector shall be oriented on the use of the format. Perhaps



for this task, special attention needs to be focused on government officials at the district and village levels, in view of the thrust toward an area-based development planning.

3. Reviews existing references. The same references used in the formulation of the

development agenda can be used here. One very important instrument for this activity would be the Atlas that has been developed to portray existing conditions in specific areas.

4. Formulates area-based investment packages. The formulation of area-based

investment packages will basically follow the existing mechanism for bottom-up planning (Musbang and Muker at respectively the village and sub-district levels) and will thus pertain to area-specific needs. It is proposed that development consultants from non-government/community-based organizations be employed to assist the working group to ensure wider and more in-depth coverage.

5. Formulates sector-based investment packages. The formulation of sector-based

investment packages will be initiated by sectoral working groups in each local government in consultation with technical service departments. The same references as those used in the formulation of the development agenda will be used here.

6. Screens investment packages. First screening of investment packages will be done

to ensure that they conform with the development agenda and the project evaluation and selection criteria.

7. Compares and validates investment packages. Area-based and sector-based

investment packages will be compared and validated against each other to avoid duplication and allow for integration, whenever possible.

3.2 Assessment of Financing Capacity for Implementation

3.2.1 Definition

Financing capacity is defined as the aggregate of resources that are available to implement the development agenda. It is not limited to financial resources; it covers as well contributions in kind, although such contributions, for the purpose of the assessment, are translated into monetary terms. Also, capacity here is not limited to what the government, primarily at the local level, will be able to provide. It also includes contributions from the community and the private sector. The activity involves the preparation of financial projections for a local government and any of its fully owned enterprises, which will be responsible for the implementation of any of the investment packages. On the basis of the projections, the amount that the local government or any of the local enterprises can provide as equity contributions and/or borrow is computed. Projections are prepared for 20 years, with the first five years being the most crucial as these will most probably correspond with the implementation period of the agenda. The results for the remaining 15 years are used primarily to assess whether projected cash flows will be able to cover debt repayments in accordance with existing regulations on debt-service-coverage ratio. Contributions from the community and the private sector are assumed as the same those indicated in the financing plans of the investment packages.



3.2.2 Procedures and Process Flow Chart The process flow chart for assessing the financial capacity for the implementation of action plans is in Figure 5.8. The procedures are as follows: Actor Procedure Local Financial Board 1. Formulates assumptions and projects locally

generated revenues. Finance Division 2. Formulates assumptions and projects receipts

from equalization fund and other higher-level government subsidies.

3. Formulates assumptions and projects the local

government's routine expenses. Bappeda 4. Computes the amount of funds that have already

been committed to development projects. Finance Division 5. Consolidates the financial projection, highlighting

the amount of net public savings that can be allocated to development.

Local Enterprise 6. Formulates assumptions and prepare financial

projections.

7. Prepares proposal on how to finance its portion of the agenda.

Finance Division/Local Enterprise 8. Present the projections to the Steering

Committee. Steering Committee 9. Prescribes guidelines on the allocation of net

public savings and how to finance the investment of local enterprises.

Bappeda 10. Prepares a scheme for allocating the available

funding to the various investment program. 11. Orients the Technical Team and Working Groups

on the allocation scheme.



FIGURE 5.8 PROCESS FLOW CHART FOR ASSESSING THE CAPACITY TO FINANCE THE IMPLEMENTATION OF THE DEVELOPMENT AGENDA

STEERING COMMITTEE BAPPEDA LOCAL FINANCIAL BOARD

START

1. Projects locally generated revenues.

2. Projects receipts from equalization fund

3. Project routine expenses.

FINANCE DIVISION

8. Make a presentation to the Steering Committee.

6. Prepares financial projections.

10. Prepares funds allocation scheme.

7. Prepares financing proposal.

9. Prescribes guidelines on funds allocation.

4. Projects the amount of committed funds.

5. Consolidates the financial projections.

LOCAL ENTERPRISE

11. Conducts orientation on the allocation scheme.



3.2.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for accomplishing the tasks comprising the activity are as follows: 1. Formulates assumptions and projects locally generated revenues. Locally generated

revenues consist of three general classifications: taxes, fees, and shares from the earnings of local enterprises. An assumption is made as to the movement of each local revenue source for each year during the projection period. The usual practice is for the Local Financial Board to assign the preparation of assumptions as well as the projections themselves to the respective administrators of the revenue sources. Individual assumptions and projections are then finalized in a meeting between the board and representatives of the revenue-source administrators. The finalization can be a long-drawn process of negotiation between the board, which customarily aims for higher revenue targets, and the revenue-source administrator, which usually opts for a more conservative target. The presence of an impartial observer during the process generally helps in arriving at a compromise and hopefully at more realistic projections. It is usually the case also that whatever is agreed upon becomes a commitment on both sides and of other government agencies/parties, which in one way or another can influence the realization of the revenue target. An example of another government agency, which becomes part of the commitment is the Legal Division, when the realization of the revenue target would require the passage of a local regulation. It becomes then the responsibility of the said division to see to it that a draft of the regulation is made, endorsed by the mayor or regent, and finally submitted to the local legislative council for deliberation and approval.

2. Formulates assumptions and projects receipts from the equalization allocation fund

and other higher-level government subsidies. The equalization fund consists of a general allocation fund, which is purely a central-government subsidy, and the share of the local government from national tax and non-tax revenues collected within its jurisdiction. The general allocation fund is a portion of the total income of the national government from domestic sources that is allocated to the different local governments according to a formula that takes into account population size and level of development of the area. It is therefore beyond the control of the local government, and the only basis for projecting its movement is to tie it up with prognoses on national economic growth. The local government, however, can influence the amount of its share from national tax and non-tax revenues through measures that will increase these revenues in its area od jurisdiction. A more definitive assumption for this revenue source can therefore be formulated.

3. Formulates assumptions and projects the routine expenses of the local government.

Projections of these expenses may be based on historical trend as well as he outlook on inflation rates.

4. Computes the amount of funds that have already been committed to development

projects. Committed funds are those meant for ongoing multi-year projects or projects that are already about to start, such as those for which the detailed engineering design, for example, has already been completed. The assumption is that these projects are not included in the development agenda.


PART V: URBAN MANAGEMENT 5-25 5. Consolidates the financial projection, highlighting the amount of net public savings

hat can be allocated to the agenda. This consists of the following:

Preparation of an income statement. The format of the consolidated financial projection is basically that of an income statement.

•

•

•

Computation of the portion of net public savings that can be allocated to the agenda. Net public savings is the balance of total receipts less total expenses. Also to be deducted from receipts are central-government subsidies in the form of special-allocation fund, emergency fund, and specific-purpose fund. Proceeds from existing loans are likewise excluded, except if these form part of committed funds, as discussed in the preceding step. The assumption here is that only a portion of the total net public savings can be allocated to the agenda as the local government will also have to finance other development activities. The percentage can be computed by referring to the development budget of the previous year and how this was divided into the different development sectors. The allocations to sectors that are similar to the sectors covered by the agenda are then assumed to be available for funding the implementation of the agenda. The percentage of the aggregate allocation to these sectors in relation to the total development budget during the previous year is then assumed to be maintained during the projection period. If the agenda does not cover the whole city or regency, then the net public savings is further reduced to equal the proportion of the proportion of the population it covers in relation to the total city or regency population. Computation of the borrowing capacity of the local government. The amount that the local government can borrow is the future value of the projected net public savings that can be allocated to the agenda during the first year of the projection period. The most recent borrowing experience of the local government is usually referred to in determining the most likely duration and interest of the loan and using a debt-service-coverage ratio of 2.5 as prescribed by existing government regulations. The amount that can be borrowed is then verified by ensuring that projected yearly cash flow and loan amortization complies with the aforementioned every year during the entire projection period.

6. Formulates assumptions and prepare financial projection. The financial projection

for a local enterprise like piped water supply is prepared using the accrual method of accounting. Three financial statements are to be prepared: income statement, sources and uses of funds (cash flow), and balance sheet (assets and liabilities). The projection is much more complex, and the procedures are quite lengthy to be included here. Suffice it to say here that what is being looked at is the capacity of the enterprise to generate funds internally and/or contract a loan to finance the implementation of its portion of the agenda. For the purpose of computing the borrowing capacity of a local enterprise, the required debt-service-coverage ratio is 1.5.

7. Prepares a proposal on how to finance its portion of the agenda. Traditionally, the

proposal has consisted of a combination of direct equity and loan. In cases where the financing capacity of the enterprise is inadequate, supplementary equity infusion from the local government is sought, even if all local enterprises are supposed to be autonomous and thus financially self-sustaining. This time, however, local enterprises are encouraged to explore alternative sources of financing, for example by selling equity to users/customers and/or privatization. The various privatization schemes as well as the process for implementing private-



sector participation is discussed in a later portion of this Handbook. 8. Present the projections to the Steering Committee. A joint presentation is proposed

here as each projection can potentially affect the others significantly. For example, a request of one enterprise for equity infusion, if approved, will automatically reduce the amount of funding for the other portions of the agenda, especially those that are non-cost recovery in nature.

9. Prescribes guidelines on the allocation of the net public savings and on how to

finance the investment of local enterprises. First, its has to be decided as to what percentage of the total net public savings can be allocated to the implementation of the agenda. Then allocation to the different sectors/programs/types of action plans is set based on the programming and financing policies that have already been enunciated. Financing proposals of local enterprises are likewise discussed and decided upon.

10. Prepares a tentative scheme for allocating the available funding to the various

investment programs. On the basis of the guidelines given by the Steering Committee, allocation to the different action plans may be made in terms of percentages of the total funding available or in terms of absolute amounts.

11. Orients the Technical Team and the Working Groups on the allocation scheme.

This should give clear indications as to whether or not there is enough funding for implementing the agenda and its individual components, as well as a basis for pruning down the investment programs.

3.3 Preparation of Short List of Investment Projects

3.3.1 Definition

The short list, in a capsule, is the pruned long list. Traditionally, the primary basis for determining the short list is the total funding available for the implementation of the agenda. With the availability of clear programming and financing policies as well as a set of investment evaluation and selection criteria, these, more than, the available funding should be used as the primary basis. It is thus possible that investment packages, after a more thorough examination than was done during the preparation of the long list, are eliminated even when funding is available because they not conform with the policies and the criteria. This approach is proposed as it is deemed in keeping with the growing emphasis on fiscal discipline, rather than on physical accomplishments. On the other, it is also possible for the local government to include in the short list all investment packages that meet the criteria even if these are beyond its capacity to finance. In the later case, the local government will then have to look for sources of financing other than those that have already been identified. One possibility is for the local government to forego the implementation of other development activities and instead devote a bigger portion of net public savings to the agenda.

3.3.2 Procedures and Process Flow Chart The process flow chart for the activity is presented in Figure 5.9, and the component tasks are enumerated as follows:


PART V: URBAN MANAGEMENT 5-27 Actor Procedure Working Group 1. Applies the investment evaluation and selection

criteria.

2. Determines the investment cut-off and prepares the short list for each investment program/sector.

3. Prepares consolidated financing plans for each investment sector/program.

Technical Team 4. Compares, validates, and synchronizes

investment packages. 5. Presents the short list to the Steering Committee

Steering Committee 6. Approves the short list.

FIGURE 5.9 PROCESS FLOW CHART FOR PREPARING THE SHORT LIST


START

6. Approves the short list.4. Compares, validates, and synchronizes investment packages.

5. Presents the short list to the Steering Committee.

WORKING GROUPS

1. Applies the investment evaluation and selection criteria.

2. Prepares the short shirt for each investment sector/ program.

3. Prepares consolidated financing plan for each sector/ program.


The explanatory notes and guidelines for undertaking the tasks are as follows: 1. Applies the project evaluation and selection criteria. All investment packages are

rated according to the evaluation and selection criteria. 2. Determines the project cut-off. The cut-off of packages that will be included in the

short list is established. The cut-off may be based on minimum number of points garnered during the evaluation and the amount of available financing.

3. Prepares consolidated financing plans for each investment sector/program. A

consolidated financing plan is basically an aggregation of the financing plans for the investment packages. For each year of the five-year implementation period, the plan should show, among others, the types of cost, the amount of disbursement, and the sources of funds.


PART V: URBAN MANAGEMENT 5-28 4. Compares, validates, and synchronizes the investment packages in the short list.

Area-based and sector-based investment packages are compared and validated against each other to avoid duplication and allow for integration, whenever possible. The process should also ensure that each investment program, as well as the agenda itself, remains a coherent whole.

5. Presents the short list to the Steering Committee. This presentation is merely for

making sure that the short list still conforms with the agenda and the investment packages it contains form a coherent program.

6. Approves the short list. The approval being sought here is just an authorization for

the short list to undergo the succeeding steps toward its finalization.

3.4 Conduct of Public Hearing

3.4.1 Definition The public hearing at this point has two main objectives: to build consensus on the short list and to mobilize support for the implementation of the agenda. The discussion of the short list is deemed important for ensuring that the investment programs conform with the original intentions of the agenda both as perceived by the government and by the public at large. The mobilization of support here does not only mean a general agreement on the investment programs. Beyond this, the public hearing should already be able to elicit initial commitments from the community and the private sector to contribute a portion of the financing required for their implementation.

3.4.2 Procedures and Process Flow Chart The process flow chart for conducting the public hearing on the short list is in Figure 5.10. The procedures are summarized as follows: Actor Procedure Bappeda 1. Prepares a public hearing plan.

2. Publicizes the short list.


4. Organizes a panel of experts. Steering Committee 5. Conducts the public hearing. 6. Formulates guidelines on how to revise and

finalize the short list. Working Groups 7. Revise the short list. Technical Team 8. Finalizes the short list and submits it to Bappeda. Bappeda 9. Publicizes revisions on the short list and the short

list itself.



FIGURE 5.10 PROCESS FLOW CHART FOR CONDUCTING PUBLIC HEARING ON THE SHORT LIST

STEERING COMMITTEE BAPPEDA TECHNICAL TEAM

START

8. Finalizes the short list.

2. Publicizes the short list.


WORKING GROUPS

7. Revise the short list.5. Conducts he public hearing. 1. Prepares a public hearing plan.

4. Conducts the public hearing.

6. Formulates guidelines on how to revise and finalize the short list.

9. Publicizes revisions on the short list and the short itself.



3.4.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the tasks are as follows: 1. Prepares a public hearing plan. A plan for presenting the short list to the public is

prepared, covering not only the conduct of the public hearing itself, but also the preparation for, including the dissemination of background information, and the follow-up to, such as how to adopt and use the results of, the public hearing.

2. Publicizes the short list. A major component of the preparation for the public hearing

is the dissemination of information that will serve as basis for informed public opinion. The information includes the bases of as well as the short list itself. Various vehicles for information dissemination may be used, including mass media and small-group discussions.

3. Invites participants to the public hearing. Representatives of community and private-

sector interests groups are tol be identified and invited to participate in the public hearing. Priority will be given to those who are foreseen to be most affected by the proposed medium-term investment programs.

4. Organizes a panel of experts. The panel of experts will serve, as it were, a mediator

between the agenda preparation organization and the public at large. It will have the responsibility of rendering objective opinion based on the disciplines of its members that can serve as basis for resolving contentious issues regarding the short list.

5. Conducts the public hearing. The public hearing is to be presided by the Steering

Committee. The proceedings of the hearing shall be completely recorded, and shall consist of, among others, presentations of the highlights of the short list, comments and reactions from the participants, and summation and conclusion.

6. Formulates guidelines on how to revise the short list. On the basis of the results of

the public hearing, guidelines on how to revise or refine the short are formulated. The Steering Committee then presents these guidelines to the Technical Team and the various Working Groups.

7. Revises the short list. On the basis of the guidelines, the Working Groups then

revise their respective short list of investment packages, paying attention to relationship among these packages to maintain the coherence of the investment program.

8. Finalizes the short list and submits it to Bappeda. The finalization process here is

merely meant to ensure that the logical relationship among the various investment programs is maintained and that the entire agenda still constitutes a coherent whole.

9. Publicizes revisions on the short list and the short list itself. This is a follow-up to the

publicity campaign that should have preceded the public hearing. The highlights of the public hearing as well as the revisions on the short list that resulted from them should form the basic material for the publicity campaign.



3.5 Pre-Feasibility Analysis of Investment Packages

3.5.1 Definition Financial feasibility analysis is performed on direct-cost-recovery packages, and economic feasibility analysis on nondirect-cost-recovery packages. The discounted cash flow method is used to yield net present values (NPVs) and financial or economic internal rates of return (FIRRs/EIRRs) as indicators of project feasibility. Design parameters may be modified, and certain projects may be dropped from the investment program, on the basis of the results of the feasibility analysis.

3.5.2 Procedures and Process Flow Chart The process flow chart for conducting the pre-feasibility analysis is in Figure 5.11. The procedures are summarized as follows: Actor Procedure Working Groups 1. Conduct feasibility assessment of discrete

investment packages. 2. Conduct feasibility assessment of entire

investment programs. 3. If necessary, adjust the design parameters of

individual packages or of entire the program to achieve financial or economic feasibility.

Technical Team 4. Reviews and finalizes the feasibility assessment.

5. Presents the feasibility assessment to the Steering Committee.

Steering Committee 6. Provides guidelines for finalizing the agenda. Technical Team 7. Finalizes the agenda.

3.5.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking the tasks are as follows: 1. Conduct feasibility assessment of discrete investment packages. The discount-rate

hurdle being used by the government and/or foreign lending agencies will be used to establish the opportunity cost of investment that will be used in the implementation of the PJM. Net present values (NPVs) and internal rates of return (FIRRs/EIRRs) will be computed to indicate the feasibility of discrete project packages.



FIGURE 5.11 PROCESS FLOW CHART CONDUCTING PRE-FEASIBILITY ANALYSIS OF INVESTMENT PACKAGES


START

6. Provides guidelines for finalizing the agenda.

4. Reviews and finalizes the feasibility assessment.

5. Presents the feasibility assessment to the Steering Committee.

WORKING GROUPS

1. Conduct feasibility assessment of discrete investment packages.

2. Conduct feasibility assessment of entire investment programs.

3. Adjust design parameters of individual packages or of entire program.

7. Finalizes the agenda.

2. Conduct feasibility assessment of entire investment programs. The feasibility

assessment of an entire investment program is an aggregation of the costs and benefits of all the packages included in the program. Both the financial and the economic internal rates of return are computed. For the former, all the financial costs but only the financial benefits are included; for the later, all benefits are included, including non-financial ones. The purpose of the assessment is to see whether individual packages, which by themselves are not feasible, can be justified on the basis of the feasibility of the entire program and the need to maintain its logical coherence, which may be lost if certain packages are dropped.

3. If necessary, adjust the design parameters of individual packages or of the entire

program for these to achieve financial or economic feasibility. In cases of packages or programs are found to be not feasible, adjustments may be made in the preliminary design parameters to make them feasible. Adjustments may entail the reduction of costs while maintaining the expected benefits or vice versa. Care should be taken, however, to ensure that the adjustments are still based on realistic assumptions.

4. Reviews and finalizes the feasibility assessment. The review here should focus on

the assumptions used in the assessment. Any revisions in the assumptions should be ultimately reflected in the computation of internal rates of return.

5. Presents the feasibility assessment to the Steering Committee. The presentation

should consist not only of the results of the feasibility assessment, but also specific recommendations from the Technical Team. One recommendation should focus on what to do with packages and/or programs that were found not to be feasible financially, economically or both.

6. Provides guidelines for finalizing the agenda. The guidelines may consist of

adjustments in the assumptions used or the deletion or retention of packages and programs based on the results of the assessment.


PART V: URBAN MANAGEMENT 5-33 7. Finalizes the agenda. Finalization here basically means that the short list is firmed

up.

3.6 Finalization of the Agenda

3.6.1 Definition The agenda is consolidated in a document following a format that is recognized by concerned government agencies and foreign funding institutions. The document is meant to integrate the vision, medium-term strategic objectives, programming and financing policies, investment evaluation and selection criteria, and the feasibility assessment of packages and programs. In addition, a indicative implementation schedule and a procurement scheme are included for each program. An introduction and an executive summary, as well as pictures and graphics, may also be included to enhance the presentation of the document.

3.6.2 Procedures and Process Flow Chart The process flow chart for finalizing the agenda is in Figure 5.12. The procedures are summarized as follows: Actor Procedure Technical Team 1. Prepares indicative implementation schedule and

procurement plan.

2. Consolidates the final agenda and submits it to the Steering Committee.

Steering Committee 3. Endorses the final agenda to the Mayor/Regent. Mayor/Regent 4. Endorses the agenda to the Local Legislative

Council. Local Legislative Council 5. Enacts a legal basis for the agenda. Bappeda 6. Sustains the information campaign on the agenda.



FIGURE 5.12 PROCESS FLOW CHART FOR FINALIZING THE AGENDA

LOCAL LEGISLATIVE

COUNCIL MAYOR/REGENT

START

5. Enacts a legal basis for the agenda.

4. Endorses the agenda to the Local Legislative Council.

STEERING COMMITTEE

1. Prepares indicative implementation schedule and procurement plan.

2. Consolidates the agenda and submits it to the Steering Committee.

3. Endorses the final agenda to the Mayor/ Regent.

6. Sustains the information campaign on the agenda.

BAPPEDA TECHNICAL TEAM



3.6.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for performing the aforementioned tasks are as follows: 1. Prepares indicative implementation schedule and procurement plan. For each

sector/program, an indicative implementation schedule of packages is prepared, taking into account the technical requirements of the packages and the schedule of related programs. The schedule should indicate when during the five-year implementation period each of the steps in the project implementation cycle will be undertaken. These steps include detailed feasibility study and environmental impact assessment, if required, detailed engineering design, land acquisition, procurement and tendering, and construction. The procurement plan indicates in what manned materials and equipment, consulting services, and contracting services will be acquired, such as through international or local competitive bidding, international or local shopping or direct appointment. In preparing the plan, existing rules and regulations should be adhered to, including those that are prescribed by foreign lending agencies, assuming that the implementation of the agenda will be financed partly by foreign borrowing. The roles of community and private sector groups, such as in monitoring or exercising oversight on the procurement process should also be indicated.

2. Consolidates the final agenda and submits it to the Steering Committee. This entails putting together the development vision, strategic objectives, programming and financing policies, investment evaluation and selection criteria, and the investment programs themselves into one document. As mentioned, pictures and graphics may be added to enhance the readability of the document.

3. Endorses the agenda to the Mayor/Regent. The Steering Committee ensures first

that the document is in accordance with the long-term vision and strategic objectives, and have been prepared in accordance with the specifications agreed upon.

4. Endorses the agenda to the Local Legislative Council. The endorsement here

should also include a recommendation for the council to enact a legislation that will provide formal recognition that the agenda shall serve as basis for the annual development budget allocation.

5. Enacts a legal basis for the agenda. As mentioned, the legal basis should formally

recognize the agenda as basis for the annual development budgeting. Like the agenda, which is meant to be a 'rolling' program, the legal basis should also be flexible to accommodate any future changes.

6. Sustains the information campaign on agenda. The information campaign that has

been started since the formulation of the long-term vision needs to be sustained, The emphasis is on the expected roles of the community and the private sector in the succeeding implementation as well as monitoring and evaluation processes.



4 IMPLEMENTATION Upon the preparation of mid-term investment program, the subsequent phase would be of implementation of the proposed physical and non-physical activity already approved. Implementation of an activity or project is generally through a process consisting of several phases. In general the phases of project implementation as presented in Figure 5.13.

FIGURE 5.13 PHASES OF PROJECT OR PROGRAM IMPLEMENTATION

Detailed Design

Identification or Definition ofProgram/Project

Pre Feasibility andFeasibility Study

Project Inception

In government sector, generally implementation of a project or program is based on identified project needs, which are contained and explained in the development plan and program such as Pola Dasar Pembangunan (Basic Development Policy), Rencana Strategis Pembangunan (Strategic Development Plan), Rencana Pembangunan Tahunan Daerah (Local Annual Development Plan), Rencana Induk Sektor (Sector Master Plan), and PJM (Mid-term Investment Program). Prior to the concrete implementation, a feasibility study and a detailed design are to be made to find out whether a project or an activity is feasible or not. The next phase is the concrete implementation, in which physical project will cover land acquisition, and bidding of consultation service and construction works. This Aturan Main (Rules of the Game) Book is not yet equipped with criteria of activity/project that needs feasibility study, in terms of types and volumes. This section will deal with mechanism of the above procedures, which cover the following: 1. Feasibility Study, 2. Detailed Design of Engineering Project, 3. Land Acquisition for Public Purposes 4. Procurement of Materials/Equipment and Construction Work with International

Competitive Bidding 5. Procurement of Materials/Equipment and Construction Work with a Local

Competitive Bidding 6. Procurement of Materials/Equipment and Construction Work with Direct Appointment



4.1 Feasibility Study

4.1.1 Definition Feasibility appraisal of a project includes pre- and feasibility study. The pre-feasibility study means to provide preliminary information of a project based on rapid appraisal generally covering a general plan, project location, and technical, environmental and economic data. The study will be followed by a feasibility study if the results are necessary to be analyzed. The feasibility of a project could be appraised by technical, financial, economic and environmental considerations. In term of environmental consideration, the feasibility study includes the Environmental Impact Analysis (AMDAL-Analysis Mengenai Dampak Lingkungan). Although there is no clarification for the activities requiring a pre- or feasibility study, this document indicates the activities/projects referring to the government activities. Referring to AMDAL, the project/activity could be generally classified into (i) activity/project that should be completed with AMDAL Document (as stated in the attachment, Decree of Ministry of Living Environment No. 17/2001) and (ii) activity need not be completed with AMDAL document. The feasibility study for the activities under the first category will include AMDAL, and only with environmental management or monitoring for the activities of second category.

4.1.2 Procedures and Process Flow Chart The process flow chart for the feasibility study is presented in Figure 5.14 and briefly discussed, as follows: Actor Procedure Project Management Team 1. Approves of the project implementation plan based

on the results of the pre-feasibility study and decides to follow it up with a feasibility study.

2. Sets up a Technical Team to serve as a

Tendering Committee Technical Team 3. Formulates the Term of Reference (TOR) Project Management Team 4. Approves the ToR. Technical Team/Tendering Committee 5. Conducts the bidding process, selects the winner,

provides Instruction to Proceed, and signs the contract document.

Implementing Team (Consultant) 6. Accomplishes preparatory works including preparation

of preliminary report.



FIGURE 5.14 PROCESS FLOW CHART FOR FEASIBILITY STUDY PREPARATION

PROJECT MANAGEMENT TEAM TECHNICAL TEAM/EVALUATIONCOMMITTEE IMPLEMENTING TEAM

4. Approves the TOR

START

6. Accomplishes prepatoryworks

7. Evaluates and providesinputs to preliminary report

9. analysis of data

10. Prepares and presents theinterim report

12. Continues the collection ofdata and analysis

13. Prepares and presents thefinal draft report

3. Formulates the Term ofReference (TOR)

5. Conducts a bidding process8. Collect primary andsecondary data and make andanalysis

11. Evaluates and providesinputs for the interim report

14. Evaluates and providesinputs for the final draft report

15. Finalizes and submits thefinal report of feasibility study

1. Approves of projectimplementation plan

2. Sets up a Technical Teamthat also performs as a tendercommittee


PART V: URBAN MANAGEMENT 5-39 Technical Team and Evaluation Committee 7. Evaluates and provides inputs to preliminary report. Implementing Team (Consultant) 8. Collects primary and secondary data and makes an

analysis.

9. Analyzes data 10. Prepares and presents the interim-report.

Technical Team and Evaluation Committee 11. Evaluates and provides inputs for the interim-

report. Implementing Team (Consultant) 12. Continues the collection of data and analysis. 13. Prepares and presents the final draft report. Technical Team and Evaluation Committee 14. Evaluates and provides inputs for the final draft

report Implementing Team (Consultant) 15. Finalizes and submits the final report of feasibility

study.

4.1.3 Explanatory Notes and Guidelines The explanatory notes on the process of Feasibility Study are as follows: 1. Approves the project implementation plan based on the results of the pre-feasibility

study and decides to follow it up with a feasibility study. The project implementation should be based on the results of the pre-feasibility study which have positive indication of project benefits, in terms macro and micro aspects, and indicates ease on land acquisition. This approval is given by the Project Management Team consisting of Bappeda staff, the related technical institutions, BPN, KPDL, and the members of the local legislative council.

2. Sets up a Technical Team to serve as Tendering Committee. The Technical Team

consists of the representatives from the following related institutions:

a. Project Initiating Unit b. Provincial Development Planning Board (Bappeda) c. Bureau of Finance (not the Treasure) d. Division of Law (Legal Affairs) e. Division of Environmental Affairs


3. Prepares and Presents the Term of Reference (ToR). The related institution initiating the project/activity is responsible for the preparation of the Term of Reference (ToR). ToR compromises the rationale/background, objectives and scope of the study. ToR performs as information and refercence for the implementing team (consultant) to


prepare the study, including the technical indication and proposed cost. Then, the ToR will be presented to technical team for evaluation and approval.

4. Approves the ToR. ToR will be evaluated and approved by Technical Team. 5. Conducts a bidding process. Based on the ToR approval, selection of Implementing

Team (bidding process) will be undertaken by Project Initiator/bidding committee. The bidding could be undertaken by a local/international bidding or direct appointment based on the scope of the project. The process and procedure of three models are discussed in Sub-Section 4.5-4.7. Note that the winner of the bidding is not allowed to take part in the other biddings of DED and physical construction of the project.

6. Accomplishes prepatory works including preparation of preliminary report. The

prepatory works includes mobilization of work force and supporting equipment; inventory and collection of data. The consultant/implementing team should prepare a preliminary report as the follow-up of the ToR. The preliminary report covers the work procedure, research methodology, and supporting theories.

7. Evaluates and provides inputs for preliminary report. The Technical Team or

Evaluation Committee will evaluate and provide several inputs to accomplish the preliminary report as a guideline for the next study. The report will be presented to and discussed with technical team or evaluation committee. The activity means to adjust the goal, aims and objectives as well as the procedure and method of the study.

8. Collects primary and secondary data and makes an analysis. The secondary data

that should be collected are as follows:

General data such as demographic, geographic, and income rate data. Technical data and technical standard of each study. Report of relevant studies. Report of annual or medium-term program. Report of related master plan.

The primary data are obtained through survey, laboratory assessment, and questionnaire, etc.

9. Analyzes data. Then, the data will be analysed and accounted, including the

calculation of Financial Internal Rate of Return (FIRR) for financial analysis and Economic Internal Rate of Return (EIRR) for economic analysis as well as sensitivity analysis.

10. Prepares and presents the interim-report. The interim-report is a preliminary study

after collecting the data. This activity means to adjust the study on the purposes and objectives.

Because the study includes several analysis, the report could be jointly or separately presented considering the finalization of each analysis aspects.

11. Evaluates and provides inputs for the interim-report. The consultant is expected to evaluate and give inputs for the improvement of the interim report.


PART V: URBAN MANAGEMENT 5-41 12. Continues the collection of data and analysis. For the completiong of the report, the

data collection should be continued. And, if the discussion of interim-report provides several inputs and correction, it is possible to collect more data.

13. Prepares and presents the final draft report. The final draft report is formulated based

on several inputs and correction from interim-report. The final draft report could be jointly or separately presented to the Technical Team or Evaluation Committee and if necessary, to the House of Representative, community leaders, certain interested group, etc.

14. Evaluates and provides inputs for the final draft report. Presentation above is the last

chance for the Technical Team and Evaluation Committee to provide inputs to correct the results of the study.

15. Finalizes and submits the final report of the feasibility study. Based on several inputs,

the consultant the revises and finalizes the draft report, and prepares the final report of the feasibility study.

4.2 Detailed Engineering Design (DED)

4.2.1 Definition

Detailed Engineering Design (DED) is one of preparatory activities of the project implementation. The objective of this activity is to provide a guideline on a technical specification and what is necessary to be executed during the project implementation. The DED may be made for all physical works of urban infrastructure provision, and consists of three main components: • Memo Design • Drawings, and • Cost Estimates The DED activity is to be contracted to the third party. In case, it will not be contracted, the bidding process, contract document preparation and supervision would be optional to be made.

4.2.2 Procedures and Process Flow Chart The process of DED preparation is presented in Figure 5.15, and briefly discussed as follows:

Actor Procedure Related agency 1. Formulates the objectives under each sectors that

will be implemented. 2. Creates a Technical Team that also performs as a

tender committee. Technical Team 3. Formulates TOR Authorized agency 4. Approves the TOR RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005

PART V: URBAN MANAGEMENT 5-42 Technical Team 5. Conducts a bidding /tendering. Implementing Team 6. Conducts a preparatory work.

7. Collects secondary data. 8. Collects primary data. 9. Sketches a topography map. 10. Analyzes data. 11. Establishes and present a memo design.

Technical Team 12. Approves of the memo design. Implementing Team 13. Prepares the bidding document.

14. Prepares a location portrait and design. 15. Prepares the budget plan. 16. Presents the DED results as a whole.

Technical Team 17. Provides several inputs for the revision of DED

results. Implementing Team 18. Revises and submit the DED final report.



FIGURE 5.15 FLOW CHART OF DETAILED ENGINEERING DESIGN (DED)

AUTHORIZED AGENCY TECHNICAL TEAM IMPLEMENTING TEAM

START

6. Conducts a preparatory work.

7. Collects secondary data.

8. Collects primary data.

9. Sketches a topography map.

10. Analyzes data.

11. Establishes and presents a memo design.

1. Formulates the objectives of DED.

2. Creates a Technical Team. 3. Formulates ToR.

12. Approves the design memo.

13. Prepares the bidding document.

4. Approves the ToR. 5. Conducts a bidding/ tendering activity.

14. Prepares a location portrait and design.

15. Prepares the budget plan.

16. Presents the DED results as a whole.

17. Provides inputs for DED revision.

18. Revise and submit the DED final report.



4.2.3 Explanatory Notes The following is the process of DED implementation: 1. Formulates the objectives under each sector that will be implemented. The

objectives of detailed study is to prepare any considerable information for the project implementation. Therefore, the DED study covers: • Indication of detailed needs on the project typical and target • Any matters related to the project location that may bring several influences on

the project. 2. Creates a Technical Team that also performs as the bidding committee. The

Technical Team shall at least compose of five personnel as follows: a. Executor/ Authorized Institution b. Planning division c. Financial (not treasurer) division d. Equipment procurement division e. Legal division

3. Formulates Terms of Reference (ToR). The Terms of Reference should be able to

clarify the DED objectives and work scope to be conducted, as information and reference for the Implementing Team in preparing the technical supplement and proposed project cost.

4. Approves the ToR. This measure is to ensure that the ToR is in accordance with

the objective that was previously agreed upon. 5. Conducts a bidding/tendering activity. Based on the approved ToR, the

Implementing Team could be appointed, depending on the project typical and any prevailing stipulations. The Implementing Team appointment could be made through either International Competitive Bidding, Local Competitive Bidding or a direct appointment. The process and procedure for the three ways of bidding is discussed in Sub-Section 4.5-4.7.

6. Conducts preparatory work. Activities to be executed by a part of the team

establishing the DED, during the preparatory phase, will include manpower mobilization and the supporting equipment; appropriate data inventory and collection; working and reporting procedures preparation; etc. If necessary, the Terms of Reference and/or Proposal should have been submitted during that phase.

7. Collects secondary data. The secondary data that should be collected are as

follows:

a. Technical standard in accordance with the work field. b. Supporting data available at inter-sector institution, if there has, or will have,

been any development/plan c. Material price and worker salary as inputs in preparing cost estimation.

8. Collects primary data. The primary data could be obtained through the following

activities:



a. Horizontal alignment measuring b. Vertical alignment measuring c. Pole installation d. Ground water depth measuring e. Soil investigation for special construction f. Other physical characteristics measuring in accordance with the work-field to

be implemented

9 Sketches the topographic map. The activities in preparing the topographic map will be as follows: a. Topographic/contour measuring directly described on a drawing stretcher. b. Maps drawing with a scale prescribed according to the information issued such

as:

Type Scale Site Plan 1:10.000 Horizontal alignment 1:100 - 1:1.000 (vertical)

1:1.000 (horizontal) Vertical alignment 1:100 -1:1.000 Detail Study 1:100 -1:1.000 Study on ground water Depth

1:10.000

10 Analyzes data. After the data have been collected, the follow-up activity would be

in-studio works, namely the process of drawing and analysis in the studio. The process takes place under mutual participation among Technical Team and other relevant institutions. The steps to be taken should be at least as follows:

a. Field re-checking to ascertain the location and the scope of the area as well as

the existing conditions. b. Prepare the draft construction design. c. Calculate the cost estimate.

11. Establishes and presents a memo design. All the standard design and

recommendation pertaining to work location are included in the memo design. All calculations, which are the basis and assumption of DED preparation, should be enclosed in this memo (report). Any temporary work stated in design memo should be presented, particularly, to the Technical Team to confirm any conformity of the works and the objectives of DED of the ToR. All the units/agencies relevant to the project implementation should be invited in the presentation (seminar).

12. Approves the memo design. All the attendants of presentation (seminar) are

probable to provide several inputs to complete the interim results. So the results could be approved without any revisions, approved under several notes or rejected under obvious reasons. However, if a consultation with any related party is conducted for a design, the design memo could be significantly accepted.

13. Prepares the bidding document. Under the explanation above, the implementing

team will complete the interim results and at the same time prepare the bidding document as the next step. Several requirements that should be met to prepare the bidding document are as follows:



a. For a big-scale project, there would be a separate bidding document for procurement and installation, while for a small-scale project, there should be one document only.

b. The bidding document for goods procurement by means of International Shopping (IS) should also be written in English version. For the civil works, there should be standard LCB document.

c. For administrative aspects, there should be a form to be filled up, either for LCB or IS.

d. Technical specification includes the technical standard and requirements of the project to be implemented.

e. The bidding document as a whole should be completed with a bill of quantity (BOQ)

14. Prepares a location portrait and design. The drawings necessary to be prepared

are as follows: a. The site plan and the project location to be made cover larger area

(City/Regency/Zone) that could be easily visualized and provide an indication of regional constellation

b. Long section (horizontal) profile of project area c. Cross section (vertical) profile of project area d. Typical drawings e. Site plan of specific buildings.

15. Prepares the Budget Plan (RAB). Several guidelines that should be taken into

account in formulating the RAB are as follows: a. RAB will be prepared by considering the prevailing price during the

implementation and construction. b. RAB includes the contingency cost (both physical and price contingencies). c. Facility improvement resulted from a detailed implementation of work

implementation/construction. d. For the road with high intensity traffic flow, if overnight work shift is needed,

overtime pay should also be included. e. RAB figures should be in accordance with the field conditions. f. The unit price should be adjusted with the prevailing price in the project

location. 16. Presents the DED results as a whole. Overall the DED results should be presented

to the Authorized Institution and the members of Technical Team. If necessary, the related institution and the interest groups will also be invited.

17. Provides inputs for revision of the DED results. The presentation (seminar) would

be the last chance for Authorized Institution and Technical Team to provide several inputs to revise the DED results.

18. Revises (improve) and submit the final DED report. Based on accepted inputs, the

Implementing Team will improve the results and prepare and submit the final DED report.



4.3 Land Acquisition for Public Facilities

4.3.1 Definition Land acquisition for public facilities is land acquisition made by the Government Institution to develop the public facilities, by means of providing compensation to the land owner. The process dealt with here refers to stipulations stated in Keppres (President Decree) No 55/93 Public facilities include: - Public road and sewerage channels; - Basin, dam and other irrigation buildings such as irrigation channels; - Public hospital and public health centers; - Port, airport or station; - Worship buildings; - Educational and school facilities; - Public and inpres (president instruction) markets; - Public burial plot facilities; - Safety facilities (dikes, talud) - Post and telecommunication facilities; - Sport facilities; - Radio and TV broadcast station including supporting facilities; - Government office buildings, and - Armed facilities. Land acquisition is made by providing a compensation to the land owner (community), based on the agreement to decide on, and approve of, the amount of compensation for the land acquired. If the total area of land needed for developing the public facilities are less than one hectare, the land acquisition will therefore be made under the supervision of the Project Manager, with an official report on property ownership right release. If the total area of the land is more than 1 hectare, the land acquisition should be made through the Panitia Pengadaan Tanah (Special Committee for Land acquisition).

4.3.2 Process and Procedures

The procedures of land acquisition for public facilities without any bottlenecks and under an agreement between the land owner and applicant is presented in Figure 5.16 and briefly summarized as follows:

Actor Procedure

Applicant 1. Submits application for the specified location for

development to Regent. Regent 2. Instructs the Head of Land Agency at Local

Government Level to create a Committee for Land Acquisition (PPT).

Head of Land Agency at Local Level 3. Creates the PPT Committee 4. Conducts a coordination meeting and provide

responses to Regent RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005

PART V: URBAN MANAGEMENT 5-48 Regent 5. Issues a permit on the specified location for public

facilities development. Committee for Land Procurement 6. Socializes the goal and objectives of application

for land acquisition and conduct inventory and survey to assess the land value and any entities on it, where compensation will be made.

7. Announces the results of inventory and submit the

proposed land value assessment and the amount of land compensation to Regent

Regent 8. Establishes the form and amount of land

compensation and provides the carbon copies of the establishment to Applicant and land owner.

Special Committee for Land Acquisition 9. Conducts the follow-up socialization on the goal

and objectives of application for land acquisition and the assessment of the amount of compensation.

Community /land owner 10. Conducts a deliberation to evaluate the land price

estimate from PPT and approves of the amount of compensation.

Special Committee for Land Acquisition 11. Announces the results of agreement and the

amount of compensation under the agreement of land owner.

Applicant 12. Pays for the compensation to community /land

owner.



FIGURE 5.16 FLOW CHART OF LAND ACQUISITION FOR PUBLIC FACILITIES THROUGH AGREEMENT

HEAD OF LAND AGENCY COMMITTEE OF LAND ACQUISITION APPLICANT

1. Submit the application for the established location.

3. Create a committee for land acquisition.

2. Instruct to create a committee for Land acquisition.

7. Announce the results of inventory and observation.

REGENT

10. Conduct deliberation.

COMMUNITY

5. Issue a permit for the specified location.

11. Announce the results of deliberation.

6. Conduct inventory and observation.

9. Socialize the results of inventory and observation.

12. Pay for the compensation.

8. Establish the specifications and amount of compensation.

START

4. Conduct a coordinating meeting.



4.3.3 Explanatory Notes The explanatory notes on the process of land acquisition through agreement are as follows: 1. Submit the application for the specified development location to the Regent. The

application should be submitted to Regent via the Head of Regional Land Agency equipped with explanatory notes on:

a. The land location required b. Total area and sketch of the required land c. Status of the land use at the time of proposing the application d. Description of the project plan that will be developed, with explanation on

financial aspects and the duration of implementation. 2. Instruct the Head of Land Agency at Local Government Level to create a

Committee for Land Acquisition (PPT). The PPT will act as a functional unit that will take several measures, required in the process of land acquisition.

3. Create the PPT. With the Head of Land Agency as the chairman, the composition

of PPT members will include representatives from Bappeda, Local Government Assistant Secretary on Administrative Affairs, and related institutions.

4. Conduct a coordination meeting and provide comments to Regent. The

coordination meeting aims to pay close attention to whether the proposed application is in accordance with the development plan and land use guidelines.

5. Issue a permit on location specified for public facilities development. Based on any

responses from the PPT, the Regent will issue a permit on the specified location if the application conforms to the existing regulations. On the other hand, if the application is against the stipulations, refusal reasons should be notified in written form to the applicant. The application process for alternative location, if proposed, will start from the initial step above.

6. Socialize the goal and objectives of land acquisition application as well as conduct

inventory and survey to assess the land value and any entities to be compensated. Under this process, socialization on objectives of land acquisition and the benefit of the facilities to be developed should be made from the beginning. What is inventoried will be, among others, the status of land, building, plants and other entities related to the land to be acquired. The survey will be focused on the legal status and other supporting documents for the land to be acquired.

7. Announce the inventory results and extend the proposed land value assessment

and the amount of compensation to Regent. Based on the feed-backs coming from the process of socialization as well as the inventory and observation results, the PPT will provide responses to Regent/Major on the amount of compensation that needs to be fixed. The inventory results should also be informed particularly to the land owner.



The considerable aspects for calculating the compensation: • The land price which is based on the real value (market price), taking account

to the selling value of Land and Property Tax objects (PBB) • The selling value of the buildings and plants that is assessed by the

responsible Local Government Institution. 8. Specify the form and amount of compensation and provide the carbon copies of

the specified compensation to the applicant and land owner. The compensation will be provided for the rights of ownership for land, buildings, and other entities such as plants. The compensation could be in the form of:

a. Money b. Land substitution c. Resettlement d. Combination of above compensations e. Other forms of compensation approved by the related parties.

9. Conduct the follow-up socialization on the goal and objectives of the application for

land acquisition and the assessment of the amount of compensation. This activity mainly emphasizes on the form and amount of compensation provided by the applicant to land owner. However, it is still probable to discuss the goal and objectives of the land acquisition once again as the supporting reasons to decide the form and amount of of compensation.

10. Conduct a deliberation to evaluate the assessment from PPT and approve of the

amount of compensation. Based on the PPT’s assessment, the land owner will conduct a deliberation to provide responses to the assessment. On that occasion, both the applicant and PPT may be invited as resource persons.

11. Announce the deliberation results and the amount of compensation that will be

accepted by the land owner. The deliberation results will be submitted to, and announced by, the PPT. It is assumed that the land owner will accept or approve of the PPT’s assessment, and if there are any differences, the applicant and PPT are willing to adjust the assessment with revisions as required by land owner.

12. Pay for the compensation to community/land owner. For this last measure, paying

for compensation will also be witnessed by PPT members.

4.4 Procurement of Materials and Construction Service through International Competitive Bidding

4.4.1 Definition The ‘rule of the game’ is a technical guideline for the procurement of materials and construction service (contract) through the international competitive bidding for the projects funded under Foreign Aid (BLN) and APBN/APBD. The objective of international competitive bidding is to provide the donor country (providers of financial assistance/loan) an opportunity to select the best construction companies. Besides, it aims at providing the other construction companies from any


PART V: URBAN MANAGEMENT 5-52 countries the same opportunity to implement the project funded using these kinds of funds. In particular, materials and equipment procurement could also be made by means of international shopping, once the value of procurement is not too high, the materials and equipment supplies are available at limited stock and require earlier shipping time. “The rule of the Game” will govern the process of International Competitive Bidding from bidder selection up to the contract formulation.

4.4.2 Process and Procedure The procedure of construction service procurement is presented in Figure 5.4.5, and summarized as follows:

Actor Procedure Head of Office /Task Force/ Project Manager 1. Creates a bidding committee. Bidding Committee 2. Prepares the Document of Bidder Selection.

3. Secures approval of the document of Bidder Selection from Director General.

4. Secures approval of the document of Bidder

Selection from the donor board/ country. 5. Prepares and disseminate invitations to listed

potential bidders (DRM). 6. Takes and returns the selection document. 7. Assesses and selects the potential bidder and

announce the selection results.

8. Draws up the bidding document. 9. Prepares and disseminates the bidding invitation

to the selected bidder list (DRT) Bidder Passing the Selection (DRT) 10. Takes the bidding document. Bidding Committee 11. Conducts an explanatory meeting.

12. Creates and legalizes the Owner Estimate (OE).

Selected Bidder 13. Proposes the offer (bidding).



FIGURE 5.17 FLOW CHART OF MATERIALS AND CONSTRUCTION SERVICE PROCUREMENT THROUGH INTERNATIONAL COMPETITIVE BIDDING

OFFICE HEAD BIDDING COMMITTEE BIDDERS

65 Days

23 Days

7 Days

1. Create a bidding committee.

START

2. Prepare the document of Bidder Selection.

3. Secure approval from Director General.

4. Secure approval from donor board/country.

5. Disseminate invitations to Bidders.

6. Take and return the selection document.

56 Days

7. Assess the bidders selection and announce the selection results.

8. Draw up the bidding document.

11. Conduct an explanatory meeting.

12. Create and legalize Owner Estimate.

Time and venue are stated in the invitation..

14. Open a bidding document.

17. Create and sign the contract document.

16. Establish the selected bidder.

9. Disseminate bidding 10. Take the bidding document.

13. Propose bidding.

Time and venue are stated in the invitation.

invitation.

14 Days

15. Assess the bidding.

58 Days

Time and venue are stated in the invitation.


PART V: URBAN MANAGEMENT 5-54 Bidding Committee 14. Opens the offer (bidding) document.

15. Assesses the offer (bid). 16. Establishes the selected bidder.

Office Head /Task Force/ Project Leader 17. Creates and signs the contract document.

4.4.3 Explanatory Notes and Guidelines 1. Create a Bidding Committee. Head of Office /Task Force/Project Manager will

create and establish a Bidding Committee. The committee is composed of, at least, 5 (five) persons from the following components: a. Implementation unit b. Planning division c. Financial division (not cashier) d. Supply division, and e. Other related institution

The committee of materials bidding and construction service (contract) could, at the same time, be assigned as the committee of bidder selection.

2. Prepare the Document Selection. In preparing this document, the bidding

committee will have to refer to the Manual Book on the List of Selected Bidder (DRT) for the Procurement of Materials and Equipment and Construction Service through the International Competitive Bidding (ICB).

3. Secure approval of the Document of Bidder Selection from Director General. The

Director General referred to is the head of unit that is already identified in the agreement with the donor institution as the implementing agency of the project to be bid.

4. Secure approval of the Document of Bidder Selection from donor board/country.

The primary concern of the donor board/country is to ascertain that the document does not discriminate the bidders participating in the bidding process. All the qualified bidders successful in the pre-qualification phase could participate in the bidding process. For the multilateral funds, all bidders from member countries are principally allowed to participate in the bidding process. While the funds from a bilateral board, only the bidders proposed by the donor country could participate.

5. Make and disseminate invitations to the bidders listed in the DRM. Announcement

of the selected bidders should be made open to public in English version. The invitations to bid should be advertised in newspapers circulated publicly in the countries, at least in one English daily paper. The invitations should be made at the same time as it is advertised in the newspapers.

The registration form and statement of interest to join the project bidding are provided by the committee.


PART V: URBAN MANAGEMENT 5-55 6. Take and return the document of bidder selection. Taking and returning the

document of bidder selection will have to be undertaken in 56 days. The bidders interested in participating in the bidding process should take the Document of Bidder Selection to be studied, analyzed and completed. The result of this activity is a written document of selected bidders.

7. Assess the selected bidders and announce the selection results. The committee, in

conducting the appraisal on bidders, should refer to the guidelines of the standard document issued by the Director General of Human Settlement on the methodology for appraisal of bidder selection. The appraisal of bidder selection, which produces draft bidder selection, should be based on the company’s financial performance interested, by considering: a. Previous experience and implementation of the same contract; b. Capability by taking account to personnel, equipment and factory; c. Financial situation.

Then, secure approval of the results from Director General and the donor board/country. After being approved, the selection results selection will be announced to the bidders.

8. Draw up the bidding document. In drawing up the bidding document, the committee

should refer to the Manual Book on Standard Procurement of Materials and Equipment and Construction Service through ICB. The bidding document should be written in English version.

Then secure approval of draft bidding document from the Director General and donor board/country.

9. Make and disseminate invitations to bid to bidders Listed in the DRT.

Announcement of bidding is only extended to the bidders listed in the DRT (List of Selected Bidders) within time duration of 14 days. These invitations are extended to bidder in each country listed in DRT and specified by the authorized official.

10. Take the bidding document. The bidders interested in participating in the bidding

process should take the Bidding Document to be studied, analyzed and used as the explanatory meeting material (Aanwijzing).

11. Conduct an explanatory meeting. The bidding committee should conduct an

explanatory meeting in order to: a. To ascertain that the bidders interested in the bidding process may recognize

in details the work plan to be implemented. In addition to explain what exists in the bidding document, the bidding committee needs to provide detailed explanation on the work to be implemented and, if deemed necessary, a field visit may be conducted;

b. Explain to the bidders about the mechanism of appraising the bid, which is applied by the bidding committee, and the requirement to involve a sub-contractor; and

c. Accommodate any questions relating to the unclear aspects stated in the bidding document.



The materials of the explanatory meeting (aanwijzing) cover:

a. General requirements b. Administrative requirements c. Technical requirements d. Procedures of bidding appraisal

After the explanatory meeting (aanwijzing), the bidding committee should prepare an official report on bidding implementation, containing any information and necessary revisions. The committee and at least two representatives of bidding participants should sign the official report. All bidders taking the bidding document, including those who are not present in the explanatory meeting, are entitled to acquire the official report and propose the bid. Grace period between explanatory meeting and schedule to propose the bid is at least 30 days.

12. Draw up and legalize Owner Estimate (OE). Draft OE is precisely drawn up based

on: a. The prescribed prices that are periodically issued by the authorized

institution, or the prices prevailing around the project location. b. Physical conditions of the neighborhood/field such as possibility of using

heavy-duty equipment; mobilization facilities, requirement to use manual way due to the environmental handicaps, and availability of manpower and building raw material.

c. Technical specification, Bill of Quantity (BQ), drawings, annexes and detailed

description in accordance with what exists in the bidding document as well as the addendum subsequently issued;

d. Cost estimate without contingency cost;

The OE calculation is an activity to produce a secret document by considering inputs coming from the explanatory meeting. Based on the decree of Ministry of Public Works No. 538/KPTS/1989 that the enactment of Draft OE to Final OE should be made prior to the bid opening. The Draft OE preparation should be finalized within five days before the bid opening to be submitted to the official authorized to legalize the OE. A correction of OE is directly made on the document, without being retyped and this document should be legalized one day before the bid opening. The legalized OE should be submitted to the bidding committee during the bid opening, and the amount of OE will be announced during the bid opening. The legalized and announced OE will be used as a reference for the following bid appraisal.


13. Propose the bidding document. The bidders invited according to the DRT list and interested in participating in the bid propose the offer (bidding) and letters of recommendation related to the requirements of the bid. The bidding should be extended within the specified time, and is inserted into the bidding box that is closed, locked and sealed. The box is provided by the bidding committee.


As the bidding document is sent by mail, the committee should note the date of acceptance of the bidding document on the outer cover. Once the bidding document is accepted after the deadline, it will not be involved in the bid and returned to the sender.

14. Open the bidding document. The order of bidding document opening is as follows:

a. On the specified time, the committee will declare that bidding document

acceptance is closed. b. The committee suggests the participants (applicants) present in the bid to

decide two persons to be their representatives, who will later on become the witnesses and sign the official report of bid opening.

c. The committee will then open the bidding box and the bidding document covers, one by one, in front of the participants. All the bidding letters and letters of recommendation will be read clearly, so that all the participants can hear. The original letters of bidding will be signed by the committee.

d. The committee will declare the legal and illegal letters of bidding. e. The participants present in the bid opening are allowed to examine the other

letters of bidding. After the bid opening, the committee will prepare the official report on bid opening.

15. Assess the bidding. The committee will make appraisal on the legal bidding only. The basis of appraisal is the criteria set in the Bidding Document.

The committee will then secure approval of the appraisal results from the Director General, Ministry Appraisal Team, Coordinating Minister of Economy, Finance and Industry as well as the donor boar/country

16. Establish the bid winner. The bidding committee will extend the report on bidding

results to the official authorized to establish the bid winner by submitting the files of the proposed prospective bid winner, equipped with explanatory notes, resume, and proposal material as well as other recommendation necessary to be considered for decision making.

17. Prepare and sign the contract document. The contract document should at least

include among others: a) Time and venue to sign the contract b) The parties to make the contract. c) Work task d) Contract Reference e) Project Director/Manager f) Period of time for work execution g) Period of maintenance/guarantee h) Contracting price i) Method of payment j) Tax and notary fee k) Emergent condition l) Sanction (inclusive of fines) m) Equipment use n) Additional Works o) Performance Bond


p) Dispute settlement


q) Domicile r) Work safety s) List of works to be sub-contracted. t) Name of sub-contractor. u) Number of copies /contract records to be made v) Contract signing.

4.5 Procurement of Material and Construction Service through Local Competitive

Bidding

4.5.1 Definition This mechanism is a technical guideline for procurement of material and construction service (contracting) through a local competitive bidding for projects funded by the Local Budget (APBD). The purpose of this local competitive bidding is to allow the local government to select the best supplier and/or contractor.

4.5.2 Process and Procedures The procedures for the procurement of construction service through local competitive bidding are graphically shown in Figure 5.18 and are summarized as follows:

Actor Procedure Office Head/Task Force/ Project Manager

1. Creates Assessment Team and Tender/Bidding

Committee.

Bidding Committee 2. Prepares the bidding document. 3. Notifies the bidding to the public. 4. Conducts a bidding pre-qualification and notifies the

pre-qualification results.

Pre-qualified bidder 5. Takes the bidding document.

Bidding Committee/ Assessment Team

6. Gives clarification on the bidding.

Pre-qualified Bidder

7. Extends the bidding document.

Bidding Committee/ Assessment Team

8. Opens the bidding documents. 9. Assesses the bidding. 10. Prepares an official report on the bidding. 11. Propose prospective bid winner.

Authorized Official

12. Decides on the bid winner.


PART V: URBAN MANAGEMENT 5-59 Tender Committee 13. Notifies the bid winner.

Project Manager and Contractors

14. Undersign a contract.

FIGURE 5.18 FLOW CHART OF MECHANISM FOR SUPPLIER AND CONTRACTOR APPOINTMENT THROUGH THE LOCAL COMPETITIVE BIDDING

PROJECT MANAGER/SUB-

PROJECT MANAGERBIDDING COMMITTEE/ASSESSMENT TEAM BIDDER

START

5. Takes the bidding documents.

6. Conducts an explanatory meeting.

7. Submits the bidding document.

9. Assesses the bids

1. Creates a Bid-ding Committee

2. Draws up the bidding document

3. Publicizes the bidding

8. Opens the bidding document.

10. Prepares an official report.

4. Conducts pre-qualification and publicizes the pre-qualification results.

11. To suggest prospective bid winners

12. To appoint the bid winners.

13. To notify the bid winners.

14. To undersign a contract.

AUTHORIZED OFFICIAL



4.5.3 Explanatory Notes and Guidelines Explanation on the procedures above is as follows: 1. Creates the Assessment Team and Bidding Committee. In managing the project,

the Project Manager/Sub-project Manager will be assisted by the Assessment Team and Committee of Supplier and Contractor Appointment. The members of the created Assessment Team should at least consist of 5 personnel: Chairman : Component of Technical Agency Secretary : Component of Agency responsible for local budget allocation Members : Bappeda (Regional Develoment Planning Board)

Bagian Perekonomian dan Pembangunan (Local Economy and Development Division) Badan Keuangan Daerah (Local Finance Division) Other agencies/prospective users

Tasks of the Assessment Team are, among others: to assess the Working Schedule and Conditions (RKS), to become resource persons during the explanatory meeting, and to give guidelines on the project implementation in accordance with the contract documents.

While the organization setup of the committee of contractor appointment should, at least, consist of 5 personnel, namely: Chairman : Local Budgeting Unit (Instansi Pemegang Mata Anggaran) Secretary : Planning of Budgeting Unit (Perencana Instansi Pemegang Mata

Anggaran) Members : Division of Economic Affairs and Development (Bagian

Perekonomian dan Pembangunan) Finance Division (Bagian Keuangan ) Division of Law (Legal Affairs) and/or Division of Supply (Bagian Perlengkapan), Technical Agency and/or other relevant agencies and/or prospective beneficiaries.

Tasks of the committee are, among others, to study the Working Schedule and Conditions (RKS), to conduct an explanatory meeting, to open the Letter of Bidding, and to prepare an Official Bid Report. The Bidding Committee is responsible to the relevant Project Manager/Sub-Project Manager. The Evaluation and Bidding Committee has been established through the issuance of the Regent Decree No. 19/Kep./KDH/2000.

2. Prepares the Bidding Documents. In the bidding document, all necessary

conditions, either administrative or technical, materials used and domestic construction service and the preferred prices should be clearly stated. The components to be assessed, criteria, assessment formula to be used, and types of contract preferred, including sample forms to be completed, which can be understood and complied with by the prospective suppliers and interested contractors should be specified in detail.


PART V: URBAN MANAGEMENT 5-61 3. Announces the bidding to the public. The Bidding Committee must announce the

bidding to the public via print or electronic mass-media and on a formal announcement board. The expenses for bidding announcement is allocated in the budget documents for financing the relevant project/activity. Prospective bidders interested in the bidding should register at the Bidding Committee for pre-qualification assessment.

4. Conduct a pre-qualification and announces the assessment results. The Bidding

Committee should conduct a bidding pre-qualification for all prospective bidders in accordance with bidding documents. They are required to take the pre-qualification documents and pass the pre-qualification conducted by the committee. No assessment (bidding pre-qualification) fee is collected.

The bidding applicants who are qualified for the assessment will be notified and invited to attend the bidding.

5. Obtains the bidding document. Bidders have rights to take the bidding document

from the committee. Duration for bidding execution, from the time of bidding notification up to the winner appointment, will be for 36 work days at the soonest and 45 work days at the latest.

6. Conducts an explanatory meeting. An explanatory meeting will be conducted at the

specified venue and time, attended by the committee members, Assessment Team and bidding applicants. Important matters to be explained to the applicants are among others: - Procedures to submit the bidding, - Documents to be enclosed within the bidding, - Method of assessment to be used, - System of contract to be applied, - Etc. If deemed necessary, the committee may give further explanation by conducting a field visit.

7. Submit the bidding document. The manner to extend the bidding document to be

used should be clarified during the explanatory meeting. The committee will record the time, date and the venue of bidding document acceptance by mail on the outer document cover and insert it into the box/bidding place.

8. Open the bidding document. Prior to the bid opening ceremony, the committee

requires at least two representatives of the bidding applicants (participants) who are present as witnesses. The committee examines, indicates and reads out the completeness of the bid document before the bidding applicants.

9. Assess the bidding. The committee assesses all biddings that are claimed to have

met the criteria declared during the opening ceremony. This will involve assessment on administrative works, engineering, and prices.

10. Prepare the official report of bidding. The bidding committee will draw a conclusion

on the results of price assessment, and it is in the Berita Acara Hasil Pelelangan (Official Report of Bidding). Such a report will then be signed by the committee chairman and all committee members or at least two thirds of the committee



members. 11. Suggest the prospective bid winners. The bidding committee will suggest three

prospective bid winners based on the listed bids that are considered favorable to the country. The prospective bid winners will have to be appointed by the committee seven working days at the latest upon the bid opening ceremony.

12. Appoint the bid winners. Based on the committee’s listed prospective bid winners,

the authorized official will then approve the bid winners. The letter stating the definite bid winners will then be extended to the committee not later than five working days to be agreed by the Project Manager, and not later than fourteen working days to be agreed by the Regent. The bid winner will be stated in Surat Penetapan Penyedia Barang/Jasa (Letter of Appointment of Material Supplier/Contractor).

13. Announce the bid winners. The committee will announce the bid winner to bidders

not later than two working days after the acceptance of Letter of Appointment of Material Supplier/Contractor. Any bidders are allowed to extend a written objection to the institution concerned not later than five working days after the announcement of the bid winners.

14. Sign a contract. Upon the issuance of Letter of Appointment of Supplier/Contractor,

the contract is then signed. To draw up the contract documents, there are a number of mechanisms: Lump-Sum, Unit Price and Turn Key Contracts. Only Cost Plus Fee System Contract is not allowed for this purpose, that is, an entire contracting for the whole works accomplishment within a certain period, where no types and volumes of works are not yet recognized, while the contract payment is made based on expenses covering material procurement, equipment leasing, worker wages, etc.

4.6 Procurement of Material and Construction Service through Direct Appointment

4.6.1 Definition

Direct appointment is a procurement process of materials and construction service (contracting) that is determined by the unit head/task force/project manager/sub-project manager and applied for: • A small scale supply of materials and construction service, • Supply of materials and construction service for only a single qualified contractor, • Supply of urgent (specific) materials/equipment and construction service contracting

after the approval by the Regent, or • Solely supply of materials and construction contract. Specifically for National/Local Budget-funded projects and foreign loan-funded projects, a direct contractor appointment is possible, once: a. The total value of the project is not too big or the total number of materials and

equipment procurement is at a small scale. b. Materials and equipment as well as spare parts needed for the construction must be

secured from the original supplier or the typical supplier. c. Materials/equipment has specific characters and may only be secured from a single

supplier.


PART V: URBAN MANAGEMENT 5-63 d. Homogeneity and sustainability of the previous works or, of the ongoing works,

having the same contractor, are proved to be more economical and the outcomes are relevant to quality works.

e. The project needs for specialty and specific expertise for implementation. f. Considerations on speed and safety in urgent implementation are needed. g. There is a special request from donor to conduct a direct contractor appointment.

4.6.2 Process and Procedures The procedures for entire contracting via direct appointment are graphically shown in Figure 5.19 and are summarized as follows:

Actor Procedure Unit Head/Task Force/ Project Manager 1. Sets up an Assessment Team and a Bidding

Committee. Bidding Committee and Assessment Team 2. Studies the work schedule and conditions. Bidding Committee 3. Extends invitations to the bidders to be appointed. Bidding Committee 4. Conducts an explanatory meeting. Contractor 5. Submits the bidding document. Bidding Committee/ Assessment Team 6. Opens the bidding document.

7. Makes a negotiation on prices and engineering.

8. Prepares a Negotiation Official Report.

9. Suggests an approval on price setting. Authorized Official 10. Sets the prices. Project Manager 11. Signs a contract.



FIGURE 5.19 FLOW CHART FOR MATERIAL SUPPLY AND CONTRACTING THROUGH DIRECT APOINTMENT PROJECT MANAGER/SUB

PROJECT MANAGER

BIDDING EXECUTIONCOMMITTEE/

ASSESSMENT TEAMBIDDER

START

5. To submit bidding documents.

6. Opens the bidding documents.

8. Prepares an official negotiation report.

1. Sets up an Assessment Team and a Bidding Committee.

2. Studies the work schedule and conditions.

3. Extends invitations to bidders.

7. Makes a negotiation on prices and engineering.

9. Suggests price setting

4. Conducts an explanatory meeting.

11. Undersign a contract. 10. Sets prices.

AUTHORIZEDOFFICIAL



4.6.3 Explanatory Notes and Guidelines Explanatory notes and guidelines on the procedures to be complied with are as follows: 1. Sets up an Assessment Team and Bidding Committee.

In managing the project, the Project Manager/Sub-project Manager will be assisted by the Assessment Team and a Bidding Committee for Supplier and Contractor Appointment. The members of the Assessment Team should at least consist of 5 personnel: Chairman : Technical Agency Secretary : Financial Agency Members : Bappeda (Regional Development Planning Board)

Bagian Perekonomian dan Pembangunan (Division of Economic Affairs and Development) Badan Keuangan Daerah (Local Finance Board) Other agencies and/or prospective beneficiaries

Tasks of the Assessment Team are among others: to assess the Work Schedule and Conditions, to become resource persons during the explanatory meeting, and to give guidelines on the project implementation in accordance with the contract documents. While the organization setup of the committee for contractor appointment should, at least, consist of 5 personnel: Chairman : Instansi Pemegang Mata Anggaran (Local Budgetting Agency) Secretary : Perencana Instansi Pemegang Mata Anggaran (Planning of Local

Budgetting Agency) Members : Bagian Perekonomian dan Pembangunan (Economy and

Development Division) Bagian Keuangan (Finance Division) Law Division and/or Bagian Perlengkapan (Supply Division), Technical Agency and/or other relevant Agency and/or prospective beneficiaries.

Tasks of the committee are, among others, to study the Work Schedule and Conditions (RKS), to conduct an explanatory meeting, to open the Letter of Bidding and to prepare the Official Report of Bidding (BAPP). The Bidding Committee is responsible to the relevant Project Manager/Sub-project Manager.

2. Studies the work schedule and conditions. The committee and the Assessment

Team jointly study the work schedule and conditions to be the basis of bidding. In the document, the detailed administrative and technical requirements, domestic/local suppliers and contractor used and preferred prices should be stated clearly. The components, criteria, evaluation formula to be used, and types of contract to be chosen, including sample form to be completed should also be stated.

3. Extends invitations to bid. The committee will invite contractors (bidders) to

propose a written bid in direct appointment.


PART V: URBAN MANAGEMENT 5-66 4. Conducts an explanatory meeting. The Bidding Committee and Assessment Team

will give explanation on the work schedule and conditions to the contractors to be directly appointed, if regarded necessary, the committee may give further explanation by conducting a field visit.

5. Submits a bidding document. The contractor to be appointed submits a bidding

document to the committee. This mechanism of document submission to be applied should be described during the explanatory meeting.

6. Opens the bidding document. The committee will open the bidding document from

the contractor to be appointed. 7. Makes a negotiation on prices and engineering. The committee and the contractor,

who will be appointed, make a negotiation on prices and engineering. Prior to the negotiation and clarification, the bidding committee should prepare manuals on clarification and on prices and engineering, indicating technical matters and work items to be clarified and negotiated, but must not include price bid or temporary price bid. The clarification and negotiation on engineering are made to procure material/contracting, which is in accordance with specifications included in the procurement document or higher specifications.

8. Prepares the official report on negotiation outcomes. The committee will have to

set a conclusion based on the negotiation outcomes contained in the Official Report on Negotiation Outcomes. It will then be under-signed by the committee and the appointed contractor.

9. Suggests an approval on price setting to the authorized official. The committee will

suggest price setting based on the negotiation made to the authorized official. 10. Sets prices. Based on the approval on set prices from the Bidding Committee, the

authorized official will then approve the set prices of the works. 11. Signs a contract. Upon the prices setting/approval by the authorized official, the

contract is undersigned. To draw up the contract document, there are a number of systems: Lump Sum, Unit Price and TurnKey Contracts. Only Cost Plus Fee system is not allowed for this purpose, that is, an entire contracting for the whole works execution within a certain period, where none of the types of works and volumes are not yet recognized while the contract payment is made based on expenses covering material procurement, equipment leasing, worker wages, etc.



5 OPERATION AND MAINTENANCE 5.1 Operation and Maintenance (Urban Infrastructure) 5.1.1 Definition

Operation and maintenance (O&M) are closely related to the cost and quality of services. Without adequate operation, the benefits, expected from the invested funds, will decrease. Operation. The operation of infrastructure system could be defined as a working procedure for service delivery system, covering the whole process of production, distribution and consumption. The process of production deals with the physical construction and management of the infrastructure in order to function continuously. The process of service distribution could be perceived as an endeavor to use the existing infrastructure. The use of infrastructure covers any responsibilities for the consequences resulted from the infrastructure used. Maintenance. Maintenance could be defined as an activity executed to maintain or repair the facilities in order to be acceptable in accordance with the existing standard with reasonable cost. The maintenance activity plays an important role to maintain the infrastructure. Well-planned maintenance will ensure the well operation procedures. On the other hand, unplanned maintenance will cause a handicap in the operation. From the description above, operation and maintenance could be defined as an activity to maintain the infrastructure assets. If the infrastructure assets are appropriately maintained, they will operate well and give optimum benefits. The urban infrastructures here include among others roads and transportation, drainage, sewerage and sanitation, and solid waste management.

5.1.2 Procedures and Process Flow Chart

The flowchart for this activity is presented in Figure 5.20 and all the tasks are summarized as follows:

Actor Procedure Technical Team

1. Inventories the existing urban infrastructure

asset.

2. Accommodates aspirations from the community pertaining to the urban infrastructure assets.

3. Prepares operation and maintenance programs.

4. Prepares a list of prioritization for operation and

maintenance activity.

5. Prepares and proposes the O&M annual budget to the executive team.



FIGURE 5.20 PROCESS FLOW CHART FOR OPERATION AND MAINTENANCE OF URBAN INFRASTRUCTURE ASSETS

LEGISLATIVE BUDGETING TEAM EXECUTIVE BUDGETING TEAM TECHNICAL TEAM

START

3. Prepares operation and maintenance programs.

1. Inventories the existing urban infrastructure assets.

2. Accommodates aspirationas from the community pertaining to the urban infrastructure assets.

4. Prepares a list of prioritization for operation and maintenance activity.

5. Prepares and proposes the O&M annual budget to the executive team.

6. Discusses the proposed budget for O&M activity.

7. Distributes the proposed budget for O&M activity.

8. Discusses the proposed budget for O&M activity.

9. Approves the O&M budget.

10. Implements the O&M activity.



Executive Budgeting Team 6. Discusses the proposed budget for O&M activity.

7. Distributes the proposed budget for O&M

activity.

Legislative Budgeting Team 8. Discusses the proposed budget for O&M activity.

9. Approves the O&M budget.

Technical Institution 10. Implements the O&M activity.


The following is a more detailed description for O&M procedures: 1. Inventories the existing urban infrastructure assets. This activity includes the

following:

• Prepares data resources. This activity consists of the following activities:

- Inventories and updates the data of all urban infrastructure assets by types and classification.

- Prepares a list of all operation and maintenance activities by sectors and responsible units.

- Prepares an informative document about the level of service of the infrastructure assets.

• Prepares the operation of the infrastructure assets. This activity is to develop

operational standard based on the planning guidelines. The operational standard includes:

a. Types of work to be executed under the operation and maintenance

activities. b. Criteria of work. c. Resources needed for the operation and maintenance activities. The

resources include manpower, equipment and materials, unit price per activity, average working outputs per day expected by the workers.

2. Accommodates aspirations from the community pertaining to the urban infrastructure

assets. This activity is to accommodate the aspirations from the community, especially pertaining to the conditions, performance and utilization of the existing urban infrastructure assets.

3. Prepares operation and maintenance programs. Based on the asset inventory and community aspiration, the technical team then prepares operation and maintenance programs. This activity includes: • Prepares the O&M budget based on the present and projected conditions. • Calculates the present and projected physical conditions of the urban

infrastructure assets.



The operation and maintenance programs should be adjusted to the needs, objectives, goals and level of maintenance service to be provided. Therefore, a precise financing plan could be made.

4. Prepares a list of prioritization for operation and maintenance activities. This activity is done after ascertaining that the funding sources for operation and maintenance activity are already available. This prioritization is very important to be done considering that the budget is very limited, whereas there are a lot of infrastructure assets requiring operation and maintenance activities.

The prioritization of O&M activities is based on the existing data and information as well as on the community aspirations. The prioritization also takes into account the types of infrastructure assets, needs for operation and maintenance, and possible impacts that may emerge when the O&M activity is not conducted.

5. Prepares and proposes the O&M annual budget to the executive budgeting team. Based on existing data and information, the unit cost is then analyxed. The unit cost analysis may serve as a reference for preparing the operation and maintenance budget. In the preparation of the operation and maintenance budget, the follwing should be taken into account:

• The process of preparing and approving the routine budget and the development budget as well as the funding sources should be made as simple as possible.

• The preparation of annual budget for O&M activities should be in a reasonable proportion and based on the technical analysis and government policies.

• The reporting system should be well prepared thereby enabling to compare the work plan and the accomplishment.

• In the budgeting process, there must be an obvious differentiation between the development project (rehabilitation and new development) and the routine and periodic maintenance activities.

• The allocation of performance budget should be adjusted with the present condition of the existing infrastructure asseets.

• There must be an established term (usually five years) to prevent any gap (between the real needed budget for O&M activities and the routine one). For that reason, at the end of term, there must be only the routine budget for O&M activities.

• The O&M budget realization should be computed every fiscal year. • After being reduced by the O&M budget allocation, the real budget for O&M

should be prepared. • The prepared budget and working program are then submitted to the technical

unit to be further discussed and reviewed. 6. Discusses the proposed budget for O&M activities. The executive budgeting team

discusses the proposed budget for O&M activities. The result of the discussion will then be used as inputs for Rakorbang (development coordination meeting).

7. Distributes the proposed budget for O&M activities. After the proposed budget for

O&M activities has been approved by the executive budgeting team, the approved bydget is then submitted to the legislative budgeting team for afurther approval.


PART V: URBAN MANAGEMENT 5-71 8. Discusses the proposed budget for O&M activities. The O&M budget proposal is

then discussed by the legislative budgeting team. The discussion is also attended by the institutions concerned.

9. Approves the O&M budget. If the legislative budgeting approves the O&M budget

proposal, thee proposed budget will then be included in the APBD (Local Revenue and Expenditure Budget).

10. Implements the O&M activities. After the issuance of APBD, the O&M activities can

be implemented. For the O&M implementation, there are several activities to be conducted as follows:

• Prepare and design the distribution of workload for one year’s implementaation of

O&M activities. After obtaining the approval of the proposed budget and working program, the planning division of O&M formulates the workload distribution for one year as the follow-up of the policy established by the legislative budgeting team. The design of workload distribution should refer to the amount of the agreed financial resources.

• Prepare a working schedule for O&M activities. This schedule is formulated based on the one-year workload distribution.

• Prepare a short-term schedule for O&M activities. The short-term schedule is formulated as a guideline for the implementation of O&M activities.

• Design a daily controlling model for the implementation of O&M activities. The controlling model is meant to evaluate the performance of the implementation of O&M activities.

• Prepares a progress report of the O&M activities and the financial allocation. The activity is meant to see the progress of O&M activities and the fund already used for the activities.

• Prepares a documentation report. This activity is meant to document all O&M activities. All O&M implementation activities will be documented and compared with the O&M work plan formulated before. Therefore, any misconduct and its underlying reasons will soon be identified.

• Evaluate the implementation of O&M activities. This activity is intended to compare the implementation activities with the original work plan, and to see how much budget already used to finance the O&M activities.

• Prepare an improvement program. This activity is meant to improve any misconduct in the O&M activities in order to achieve the objectives. To prevent the misconduct, the management system, especially pertaining to the work planning and implementation, should also be improved.

5.2 Operation and Maintenance of PDAM 5.2.1 Definition

The operation and maintenance activities of PDAM (local water enterprice) include all activities conducted to improve the water supply system, both regularly and insidentally, provided by PDAM Kabupaten Bantul.

5.2.2 Process and Procedures The process flow chart for undetraking the operation and maintenance of PDAM is graphically presented in Figure 5.21 and the procedures are briefly decribed below: RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


Actor Procedure Head of Branch PDAM / Division of Production / Division of Transmission and Distribution

1. Inventories the data on the existing

condition of the infrastructure assets of PDAM.

2. Accommodates the customers’ aspirations

about the piped water supply provided by PDAM.

3. Prepares and proposes O&M programs.

Technical Director 4. Inspects the proposed O&M programs.

5. Assigns the Head of Planning Division to

conduct a field survey.

Planning Division Head 6. Conducts a field survey.

7. Prepares a budget proposal for O&M activities.

Technical Director 8. Makes a prioritization list of O&M activities.

9. Approves the budget proposal for O&M

activities.

10. Assigns the Head of Branch PDAM / Production Division / Transmission and Distribution Division to implement the O&M programs.

Head of PDAM Branch/ Production Dvision/ Transmis-sion and Distribution Dvision

11. Implements the approved O&M programs.

12. Prepares a progress report on the O&M implementation.



FIGURE 5.21 PROCESS FLOW CHART FOR OPERATION AND MAINTENANCE OF PDAM

PLANNING DIVISION TECHNICAL DIRECTOR HEAD OF BRANCH PDAM / PRODUCTION DIVISION /TRANSMISSION AND DISTRIBUTION DIVISION

START

3. Prepares and proposes O&M programs.

1. Inventories the data on the existing of the infrastructure assets of PDAM.

2. Accommodates the customers' aspirations about the piped water supply provided by PDAM.

11. Implements the approved O&M programs.

12. Prepares a progress report on the O&M implementation.

4. Inspects the proposed O&M programs.

5. Assigns the Head of Planning Division to conduct a field survey.

7. Prepares a budget proposal for O&M activities.

6. Conducts a field survey.

8. Makes a prioritization list of O&M activities.

9. Approves the budget proposal for O&M activities.

10. Assigns the Head of Branch PDAM/ Production Division / Transmission and Distribution Division to implement O&M.



5.2.3 Explanatory Notes and Guidelines Following is a more detailed description of the aforementioned procedures: 1. Inventories the data on the existing condition of the infrastructure assets of PDAM.

The branch office / production division and the division of transmission and distribution conducts an inventory to know the condition of the existing infrastructure. This activity includes the followings:

• Prepares the data on the infrastructure assets of PDAM. The data on the physical condition of the assets are then inventoried.

• Analyzes and evaluate the inventoried data. • Makes a list of assets that need to be maintained. • Prepares a standardized operational procedure (SOP).

2. Accommodates the customers’ aspirations about the piped water supply provided by PDAM. The branch office / production division and the division of transmission and distribution then accommodates any aspirations from the community and customers, pertaining to:

• The existing conditions of the infrastructure assets. • Problems in relation to the performance of the infrastructure assets.

3. Prepares and proposes O&M programs. After conducting data inventory, the branch office / production division and the division of transmission and distribution proposes O&M programs taking into account the SOP and existing problems. The proposed O&M program should include the activities to be conducted, and resources needed to implement the O&M activities. The resources consist of the number of workers, materials and equipment, cost per activity, daily achievement expected by the workers. In addition, the O&M program should also consider the needs, goals and objectives. The proposed O&M program is then submitted to the Technical Director.

4. Inspects the proposed O&M programs. The Technical Director then inspects the

O&M programs proposed by the branch office / production division and the division of transmission and distribution.

5. Assigns the Head of Planning Division to conduct a field survey. The Technical

Director then assigns the head of planning division to conduct a field survey and analyze the resources required for the O&M activities.

6. Conducts a field survey. The planning divison then conducts a field survey to check

the existing condition of the infrastructure assets and to analyze the resources required for the O&M activities.

7. Prepares a budget proposal for O&M activities. Based on the results of the field

survey, the resources required for the O&M activities can be calculated. The head of planning division then prepares a budget proposal for O&M activities as the follows-up of the O&M programs proposed by the branch office / production division and the division of transmission and distribution. In preparing the budget proposal, the following should be taken into account:



• The proposed budget should be in a reasonable proportion based on the technical analysis and government policies.

•

The progress reporting system should be well prepared to make it easier to compare the planned activities and the achievement of the activities.

• In the budgeting process, there must be an obvious differentiation between the development project (rehabilitation and new development) and the routine and periodic maintenance activities.

• The allocation of performance budget should be adjusted with the present condition of the existing infrastructure assets.

• There must be an established term (usually five years) to prevent any gap (between the real needed budget for O&M activities and the routine one). For that reason, at the end of term, there must be only the routine budget for O&M activities.

• The O&M budget realization should be computed every fiscal year.

8. Makes a prioritization list of O&M activities. After the budget proposal for O&M activities is finished, the proposal is then submitted to the Technical Director for approval. Before giving his approval, the Technical Director will make a prioritization list realizing that the fund is limited. The prioritization is based on the present condition of the infrastructure assets, the impacts that may emerge when the O&M activities are not conducted, needs and available resources.

9. Approves the budget proposal for O&M activitis. The Technical Director, after

discussing with the branch office / production division and the division of transmission and distribution, then approves the budget proposal.

10. Assigns the branch office / production division and the division of transmission and

distribution. Once the budget proposal is approved, the Technical Director will then assign the branch office / production division and the division of transmission and distribution to implement the O&M activities.

11. Implements the approved O&M programs. On the basis of the assignment from the

Technical Director, the branch office / production division and the division of transmission and distribution then implement the O&M activities. The implementation should take into account the budget allocation.

For the O&M implementation, there are several activities to be conducted as follows:

• Prepare a working schedule for O&M activities. • Prepare a short-term schedule for O&M activities. • Design a daily controlling model for the implementation of O&M activities. The

controlling model is meant to evaluate the performance of the implementation of O&M activities.

• Prepares a progress report of the O&M activities. The progress report also compares the planned activities and the achievement of the activities. The activity is meant to prevent any misconduct.

• Evaluate the implementation of O&M activities. This activity is intended to compare the implementation activities with the original work plan, and to see how much budget already used to finance the O&M activities.

• Prepare an improvement program. This activity is meant to improve any misconduct in the O&M activities in order to achieve the objectives. To prevent



the misconduct, the management system, especially pertaining to the work planning and implementation, should also be improved.

12. Prepares a progress report on O&M implementation. The progress report is prepared

by the branch, production division, and the transmission and distribution division.

5.3 Water Tariff Setting

5.3.1 Definition

Tariff is a fee for piped water supply to be paid by the customer of PDAM (Local Water Enterprise) based on the volume of water consumed (m3). Following are the legal bases for tariff setting: 1. The Regulation issued by the Minister of Home Affairs No. 2 / 1998 on the Guidelines

of Tariff Setting for PDAM. 2. The Instruction of the Minister of Home Affairs No. 8 / 1998 on the Implementation

Guidelines of Tariff Setting for PDAM. 3. The Letter from the Minister of Home Affairs No. 690/578/PUOD dated 4 March 1998

on Water Tariff Adjustment. 4. Local Regulation No. 5 / 1990 on the Establishment of PDAM Kabupaten Bantul. The tariff setting is based on such principles as cost recovery, customers’ affordability, transparant and simple. In addition, the fee computation is based on such criteria as the volume of water consumed, types of customers, progressive tariff and cross-subsidy.


The process flow chart for tariff setting of PDAM Kabupaten Bantul is presented in Figure 5.22 and the procedures aare briefly described as follows:

Actor Procedure PDAM

1. Establish an internal team of tariff adjustment. 2. Evaluate the existing tariff. 3. Formulate a tariff adjustment. 4. Consolidate the tariff adjustment. 5. Prepare the same formula of tariff setting.

Customers 6. Takes part in the discussions on tariff setting.

Controlling Board / Related Institutions

7. Analyze and evaluate the tariff setting. 8. Prepare a draft decree of tariff setting



FIGURE 5.22 PROCESS FLOW CHART FOR WATER TARIFF SETTING

PDAM CUSTOMER

1. Establish an internal team of tariff adjustment.

CONTROLLINGBOARD / RELATED

INSTITUTIONS

COMISSION - CDPRD

HEAD OF LOCALLEGISLATIVE

COUNCILREGENT

2. Evaluate the existing tariff.

3. Formulate a tariff adjustment.

4. Consolidate the tariff adjustment.

5. Prepare the same formula of tariff setting.

6. Take part in the discussion on tariff setting.

7. Analyze and evaluate the tariff setting.

8. Prepare a draft decree of tariff setting

9. Discuss the proposed tariff setting.

10. Merekomendasi- kan rencana penetapan tarif

11. Approve the proposed tariff setting.

12. Issues the decree on the new warte tarif.

13. Mengadakan sosialisasi dalam pelaks. tarif baru


PART V: URBAN MANAGEMENT 5-78 Commission - C of Local Legislative Council (DPRD)

9. Discuss the proposed tariff setting. 10. Recommend the proposed tariff setting.

Head of Local Legislative Council

11. Approve the new water tariff.

Regent 12. Issues the decree on the new water tariff.

PDAM 13. Disseminate the new water tariff.


The explanatory notes and guidelines for water tariff setting are as follows: 1. Establish an internal team of tariff adjustment. PDAM establish an internal team of

water tariff adjustment. The team consists of the Division of Finance and the Division of Technical Affairs.

2. Evaluate the existing tariff. PDAM then evaluates the existing water tariff, taking into

account the balance between the enterprise income and the real operating cost of the enterprise.

3. Formulate a tariff adjusment. PDAM will formulate a tariff adjustment based on such

variables as operation and maintenance cost, depreciation cost, installments and interest (if any), profit, and the volume of distributeed water. In addition, there are some other variables pertaining the tariff adjustment as follows:

• The investment and operating costs. • The affordability of the community (customers) in the service area, the

percentage of the average income per capita to be allocated, and cross subsidy. • Tariff evaluation every two years. • Personnel cost, both the regular personnel and the personnel paid by

honorarium. • Power and chemical costs. • Maintenance costs, including the cost for replacement and repair.

4. Consolidate the tariff adjustment. PERPAMSI (Indonesian Water Enperprises

Association) will coordinate all PDAMs in the Special Province of Yogyakarta (DIY) and consolidate the proposed tariff adjustment.

5. Prepare the same formula of tariff setting. PDAM will formulate a formula for tariff

setting and propose it for all PDAMs in DIY. 6. Take part in the discussion on tariff setting. The customers will be involved in the

discussion of tariff setting. It is a kind of a brain storming discussion to accommodate the customers’ aspirations to serve as inputs in tariff setting.

7. Analyze and evaluate the tariff setting. The PDAM Internal Team, the Controlling

Board and the institutions concerned will discuss to analyze and evaluate the proposed tariff setting. The result of the discussion will be sumbitted to PDAMs to be reviewed based on the inputs they have already got.


PART V: URBAN MANAGEMENT 5-79 8. Prepare a draft decree of tariff setting. The draft decree is formulated by the

controlling board and thee institutions concerned. 9. Discuss the proposed tariff setting. The Commission - C of the Local legislative

Council will discuss and analyze the proposed tariff setting. 10. Recommend the proposed tariff setting. The Commission - C of the Local Legislative

will then recommend the proposed tariff setting. 11. Approves the new water tariff. The Head of the Local Legislative Council then

approves the new water tariff. 12. Issues the decree on the new water tariff. The Regent as the head of the local

government then issues the decree on the new water tariff. 13. Disseminate the new water tariff. Soon after the decree on the new water tariff has

been issued, PDAM conducts regular dissemination of the new water tariff.

5.4 Tariff Setting for Water Quality Control

5.4.1 Definition

Tariff is frequently termed as fee or service charge. Tariff setting is based on the service provided to the customers. The tariff setting for water quality control is based on the parameters to be checked, i.e. the bacteriologic or chemical contents. Those (any institutions or individuals) obliged to have their water quality controlled are as follows: • PDAM • Hotel, guesthouse, cottage, and boarding house. • Pharmacy, hospital, maternity hospital, clinics, and laboratory. • Food and beverage industry, catering, restaurant, market and super market. • Big, medium and small-scale industries. • Training center, university, airport, office and bank. • Swimming pool.


The process flow chart for water quality control is presented in Figure 5.23 and the procedures are briefly described as follows: Actor Procedure Department of Health 1. Establish an internal team of tariff setting. 2. Formulate a tariff setting proposal.



FIGURE 5.23 PROCESS FLOW CHART FOR WATER QUALITY CONTROL

REGENT DIVISION OF LEGALAFFAIRS

LOCAL LEGISLATIVECOUNCIL (DPRD)

6. Discuss the tariff setting proposal

7. Recommend the tariff setting proposal

RELATED INSTITUTIONS

5. Discuss and review the Raperda

11. Signs the local regulation

8. Schedule the Regent's respond to the tariff setting proposal

COORDINATING TEAM DEPARTMENT OF HEALTH

9. Conduct a plenary meeting

10. Change the status of the draft local regulation to local regulation

3. Establish a coordinating team

1. Establish an internal team of tariff setting

START

2. Formulate a tariff setting proposal.

4. Prepare a draft local regulaation (Raperda)

12. Disseminate the new local regulation


PART V: URBAN MANAGEMENT 5-81 Coordinating Team 3. Establish a coordinating team. 4. Prepare a draft local regulation (Raperda). Related Institutions 5. Discuss and review the Raperda. Local Legislative Council 6. Discuss the tariff setting proposal. 7. Recommend the tariff setting proposal. Division of Legal Affairs 8. Schedule the Regent’s respond to the tariff setting

proposal. Local Legislative Council 9. Conduct a plenary meeting. 10. Change the status of the draft local regulation to the

local regulation. Regent 11. Signs the local regulation. Department of Health 12. Disseminate the new local regulation.


The explanatory notes and guidelines for water quality control are as follows:

1. Establish an internal team of tariff setting. The Department of Health Dinas establish

an internal team of tariff setting. The internal team consists of the division of technical affairs and the division of finance.

2. Formulate a tariff setting proposal. The internal team will formulate a tariff setting

proposal based on certain variables. The water quality control is based on the following parameter as presented in Table 5.24.

FIGURE 5.24 PARAMETER FOR WATER QUALITY CONTROL

No. Type of Control Parameter A Bacteriological Control 1. Clear water Media of control: - Total coliform bacteria Operational cost: - Transport of sample - Laboratory service (work risk) - Power cost (electricity). - Lost material cost (Bahan habis pakai) 2. Drinking water Media of control: - Total coliform bacteria - Coliform bacteria Operational cost:



No. Type of Control Parameter - Transport of sample - Laboratory service (work risk) - Power cost (electricity). - Lost material cost 3. Swimming pool Media of control: - Total coliform bacteria - Figure of germ Operational cost: - Transport of sample - Laboratory service (work risk) - Power cost (electricity). - Lost material cost 4. Public bathing Media of control: - Total coliform bacteria Operational cost: - Transport of sample - Laboratory service (work risk) - Power cost (electricity). - Lost material cost B. Chemical control

1. Clear water Control of 12 parameters: pH, turbidity, color, iron, magnetium, nitrat, nitrit, hardness, sulfat, chloride, fluoride and organic substance.

Operational cost: - Transport of sample - Laboratory service (work risk) - Power cost (electricity). - Lost material cost

2. Drinking water

Pemeriksaan 13 parameter: pH, kekeruhan, warna, besi, mangan, nitrat, nitrit, kesadahan, sulfat, klorida, fluorida, zat organik dan sisa klor.

Biaya operasional: - Transport of sample - Laboratory service (work risk) - Power cost (electricity). - Lost material cost

3. Establish a coordinating team. The coordinating team of tariff setting is divided into

the following: a) Inter-program: environmental section, public health service section,

finance/administration section, P2P section and the family welfare section. b) Inter-sectoral: division of economic affairs, division of living environment, division

of legal affairs, laboratory of health, laboratory of environmental health, Indonesian Consumer Foundation (YLKI), Local Development and Planning



Board, Department of Irrigation, Department of Mining, PDAM, Indonesian Hotel Association (PHRI)

4. Prepare a draft local regulation (Raperda). After the Department of Health prepares a

tariff setting proposal, the coordinating team then prepares a draft local regulation. 5. Discuss and review the Raperda. The coordinating team and related institutions then

conducts a more detail discussion and review of the draft local regulationpertaining to the technical, administration and legal aspects.

6. Discuss the tariff setting proposal. This discussion conducted by the local legislative

council is to improve or revise the local regulation, especially pertaining to the tariff setting proposal.

7. Recommend the tariff setting proposal. The proposed tariff setting is revised by the

Department of Health taking into account the inputs from the Local Legislative Council. The Local Legislative Council then recommends the proposal.

8. Schedule the Regent’s respond to the tariff setting proposal. Based on the results of

the discussion conducted by the Local Legislative Council, the Division of Legal Affairs then schedules the Regent’s respond to the tariff setting proposal, through a consolidation meeting attended by the representatives from the local government officials, local legislative council and from the institutions concerned.

9. Conduct a plenary meeting. The plenary meeting is conducted to obtain the final

approval from all Commissions of the Local Legislative Council. 10. Change the status of the draft local regulation to the local regulation. In the plenary

meeting, the status of the draft local regulation will be changed into the (final) local regulation.

11. Signs the local regulation. Soon after the final approval from all Commissions of the

Local Legislative Council, the local regulation is then signed by the Regent. 12. Disseminate the local regulation. The dissemination of the new local regulation is

conducted by the Department of Health.

5.5 Tariff Setting of Solid Waste Management Service

5.5.1 Definition

Tariff is frequently termed as fee or service charge. Tariff setting is based on the service provided to the customers. The tariff setting for solid waste management service is based on the government policy pertaining to the service charge, customers’ affordability, as the aspects of fairness. The tariff setting for solid waste management service is based on the Local Regulation of Kabupaten Bantul No. 10 / 2001 on Solid Waste Management. The fee is charged to any institutions or individuals for solid waste management service.




The process flow chart for solid waste management service is graphically presented in Figure 5.25 and the procedures are briefly described as follows:

Actor Procedure Sub-Department of Human Settlement

1. Establish an internal team of tariff setting. 2. Formulate a tariff setting proposal.

Coordinating Team 3. Establish a coordinating team. 4. Prepare a draft local regulation (Raperda)

Related Institutions 5. Discuss and review the Raperda

Local Legislative Council 6. Discuss the tariff setting proposal. 7. Recommend the tariff setting proposal.

Division of Legal Affairs 8. Schedule the Regent’s respond to the tariff setting proposal.

Local Legislative Council 9. Conduct a plenary meeting.

10. Change the status of the draft local

regulation to the (final) local regulation.

Regent

11. Signs the local regulation.

Sub-Department of Human Settlemeent

12. Disseminate the new local regulation.



FIGURE 5.25 PROCESS FLOW CHART FOR SOLID WASTE MANAGEMENT SERVICE

REGENT DIVISION OF LEGALAFFAIRS

LOCAL LEGISLATIVECOUNCIL

6. Discuss the tariff setting proposal.

7. Recommend the tariff setting proposal.

RELATED INSTITUTIONS

5. Discuss and review the Raperda

11. Signs the local regulation.

8. Schedule the Regent's respond to the tariff setting proposal.

COORDINATING TEAM SUB-DEPARTMENT OFHUMAN SETTLEMENT

9. Conduct a plenary meeting.

10. Change the status of the draft local government to the (final) local government.

3. Establish a coordinating team.

1. Establish an internal team of tariff setting

START

2. Formulate a tariff setting proposal.

4. Prepare a draft local regulation (Raperda)

12. Disseminate the new local regulation.


Part V: Urban Management 5-86


The explanatory notes and guidelines for solid waste management service are as follows:

1. Establish an internal team of tariff setting. The Sub-Departments of Human

Settlement establish an internal team of tariff setting. The team consists of the division of technical affairs and the division of finance.

2. Formulate a tariff setting proposal. The internal team will formulate a tariff setting

proposal based on certain variables. Based on the Local Regulation of Kabupaten Bantul No. 10 / 2001 on Solid Waste Management, the tariff setting of solid waste management service is as follows:

a). Cost of solid waste collection. b). Cost of solid waste transport, including the followings:

• Solid waste transport by dump truck from the bin container to the final disposal site (TPA).

• Solid waste transport by dump truck from the temporary disposal site (TPS) to TPA.

• Solid waste transport by dump truck from the site of solid waste recycling (LDUS) / transfer depo (TD) to TPA.

• Solid waste transport by pick-up truck from the bin container to TPA. • Solid waste transport by pick-up truck from TPS to TPA. • Solid waste transport by armroll truck from TPS to TPA.

c). Cost of solid waste dumping: • Solid waste dumping in TPS. • Solid waste dumping in in container. • Solid waste dumping in bin continer. • Solid waste dumping in LDUS/TD.

d) Cost of the land acquisition for TPA. e) Cost of operation and maintenance:

• The operation and maintenance of dump trucks. • The operation and maintenance of arm roll trucks. • The operation and maintenance of pick-up trucks. • The operation and maintenance of whell loaders. • The operation and maintenance of bulldozers.

The classification of tariff setting is based on the following: a) Fee for solid waste collection and transport from houses and boarding houses. b) Fee for solid waste collection and transport from hotels/industries/shops. c) Fee for solid waste collection and transport from markets and side-walk vendors. d) Fee for solid waste collection and transport from public attraactions, fairs /

bazaars, exhibitions, mass-conscriptions, contests and ceremonial feasts. e) Any institutions, individuals or local governments transfering and disposing solid

waste by themselves in TPA/LDUS are also responsible for the solid waste management.

3. Establish a coordinating team. The coordinating team of tariff setting is divided into

the followings: a) Inter-program: the Sub-department of Human Settlement


Part V: Urban Management 5-87

b) Inter-sectoral: Division of Economic Affairs, Division of Living Environment, Division of Legal Affairs, Local Development and Planning Board, Local Financial Management Board and the representatives from the customers.

4. Prepare a draft local regulation. Soon after the Sub-department of Human Settlement

has prepared a tariff setting proposal, the coordinating team then prepares a draft local regulation (Raperda).

5. Discuss and review the Raperda. The coordinating team and related institutions then

conducts a more detail discussion and review of the draft local regulation pertaining to the technical, administration and legal aspects.

6. Discuss the tariff setting proposal. This discussion conducted by the local legislative

council is to improve or revise the local regulation, especially pertaining to the tariff setting proposal.

7. Recommend the tariff setting proposal. The proposed tariff setting is revised by the

Sub-department of Human Settlement taking into account the inputs from the Local Legislative Council. The Local Legislative Council then recommends the proposal.

8. Schedule the Regent’s respond to the tariff setting proposal. Based on the results of

the discussion with the Local Legislative Council, the Division of Legal Affairs then schedules the Regent’s respond to the tariff setting proposal, through a consolidation meeting attended by the representatives from the local government officials, local legislative council and from the institutions concerned.

9. Conduct a plenary meeting. The plenary meeting is conducted to obtain the final

approval from all Commissions of the Local Legislative Council. 10. Change the status of the draft local regulation to the local regulation. In the plenary

meeting, the status of the draft local regulation will be changed into the (final) local regulation.

11. Signs the local regulation. Soon after the final approval from all Commissions of the

Local Legislative Council, the local regulation is then signed by the Regent. 12. Disseminate the local regulation. The Sub-department of Human Settlement wil

regularly conduct the dissemination of the new local regulation.



6 MONITORING AND EVALUATION

6.1 Formulation of Monitoring Benchmarks and Criteria 6.1.1 Definition

The activity is aimed at verifying a certain value or judgement used as a standard to evaluate the project or program accomplishment. The value is verified at the beginning of the project. The judgement is undertaken during the work operation, at midway of project implementation or after the project completion.

6.1.2 Procedures and Process Flow Chart The process flow chart for this activity is graphically presented in Figure 5.26 and the procedures are described as follows:

Actor Procedure Bappeda/Technical Institution Steering Committee Technical Team

1. Formulate a draft term of reference for

performance evaluation based on existing indicators and parameters.

2. Finalize the term of reference for the formulation

of benchmarks and criteria of indicators and parameters.

3. Establish a technical team. 4. Formulate socio-technical and socio-economic

indicators. 5. Conduct a survey. 6. Finalize the report of the benchmarks, indicators

and parameters. 7. Disseminate the benchmarks, indicators and

parameters.



FIGURE 5.26 PROCESS FLOW CHART FOR THE FORMULATION OF MONITORING BENCHMARK AND CRITERIA

Bappeda/Technical

Institution Steering Committee

START

1. Formulate a draft term of reference for performance evaluation based on existing indicators and parameters.

2. Finalize the term of reference for the formulation of benchmarks and criteria of indicators and parameters.

3. Establish a technical team.

Technical Team

4. Formulate socio-technical and socio-economic indicators

5. Conduct a survey.

6. Finalize the report of the benchmarks, indicators and parameters.

7. Disseminate the benchmarks, indicators and parameters.


The explanatory notes and guidelines for the formulation of monitoring benchmarks and criteria are as follows: 1. Formulate a draft term of reference for performance evaluation based on the

existing indicators and parameters. Term of Reference (ToR) is formulated by Bappeda or the technical institution concerned. The ToR describes the implementation of the survey on the socio technical and socio economic profile, the activities to be monitored and evaluated, the implementation schedule, implementation criteria and the expected results. The formulation is prepared before or during the project implementation.

2. Finalize the Term of Reference for the formulation of benchmarks and criteria of

indicators and parameters. The finalization of the term of reference will be conducted by the Steering Committee of which members are from related institutions. The Steering Committee is chaired by the head of the Local



Development and Planning Board (Bappeda) serving as the coordinator of local development. If the ToR should be reviewed, turn it back to Bappeda or related Technical Institution for a further updating.

3. Establish a technical team. The establishment of a technical (implementation)

team is conducted by the steering committee. If the term of reference is to be prepared by a third party, the establishment of the technical team becomes the responsibility of the institution concerned.

4. Formulate socio-technical and socio-economic indicators. The technical team has

to formulate the socio-technical and socio-economic indicators that describe the existing conditions before the project implementation.

5. Conduct a survey. The technical team will conduct a survey. The survey is

focused on the socio-technical and socio-economic profile before the project implementation as well as on the expected results after the project completion. Based on the results of the survey, the technical team then makes analysis on the benchmarks and indicators for the project monitoring and evaluation.

6. Finalize the report on the benchmarks, indicators and parameters. Based on the

achieved results, the Technical Team then prepares a report. The report will serve as a guideline to monitor and evaluate the project during its implementation and after its completion. To legalize the report, the Technical Team should present it in the forum of related institutions for commends.

7. Disseminate the benchmarks, indicators and parameters. The technical

team then disseminates the updated and revised report through mass media and other publication devices. The activity requires approximately 15% of the total project duration of 60 days.

6.2 Project Reporting and Monitoring 6.2.1 Definition

Project reporting and monitoring is an activity conducted to assess the project status and phasing at a certain period. The assessment is based on the benchmarks and indicators previously prepared under the activity of the Formulation of Monitoring Benchmark and Criteria. The assessment is undertaken during the project implementation. It serves as a basis for paying to the project executor for the project implementation.

6.2.2 Procedures and Process Flow Chart The process flow chart for this activity is graphically presented in Figure 5.27 and the procedures are described as follows:


Actor Procedure Bappeda/Technical Institution


performance evaluation.

PART V: URBAN MANAGEMENT 5-91 Steering Committee Technical Team Steering Committee Technical Team Project executor Technical Team Bappeda/Technical Institution

2. Finalize the term of reference for performance evaluation of project implementation.

3. Establish a technical team. 4. Conduct data collection and field survey. 5. Compile socio-technical and socio-economic

data. 6. Prepare a project monitoring and evaluation

report. 7. Approve the project monitoring and evaluation

report. 8. Socialize the project monitoring and evaluation

report. 9. Crosscheck the project monitoring and

evaluation report. 10. Finalize the project monitoring and evaluation

report. 11. Pay the project executor for the project

implementation.



FIGURE 5.27 DIAGRAM FLOW CHART FOR PROJECT MONITORING AND REPORTING

Bappeda/Technical Institution

START

1. Formulate a draft term of reference for performance evaluation.

Steering Committee Technical Team Project Executor


3. Establish a technical team.

4. Conduct data collection and field survey.

5. Compile socio-technical and socio-economic data.

6. Prepare a project monitoring and evaluation report.

7. Approve the project monitoring and evaluation report.

8. Socialize the project monitoring and evaluation report.

9. Crosscheck the project monitoring and evaluation report.

10. Finalize the project monitoring and evaluation report.

11. Pay the project executor for the project implementation.



6.2.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for project monitoring and reporting are as follows: 1. Formulate a draft term of reference. Bappeda or Technical Institution is

responsible for the formulation of the term of reference for the performance evaluation of the project implementation. The term of reference includes the project description, the formulation of performance evaluation, project duration, expected results, criteria for the selection of project executors.

2. Finalize the term of reference for performance evaluation of project

implementation. The steering committee will finalize the term of reference for performance evaluation of the project implementation. The steering committee chaired by the head of Bappeda has representatives from related institutions as its members. If the term of reference has to be reviewed, it should be turned back to Bappeda or related technical institutions.

3. Establish a technical team. The establishment of a technical (implementation)

team is conducted by the steering committee. If the term of reference is to be prepared by a third party, the establishment of the technical team becomes the responsibility of the institution concerned.

4. Conduct data collection and field survey. This activity is will be conducted by the

technical team. The data collection is based on the accepted reports, field condition, and perception of related parties. The field survey is meant to crosscheck the existing data collected before. During the field survey, the physical condition of the project is also documented for further analysis.

5. Compile socio-technical and socio-economic data. The Technical Team will

compile the data collected from the field survey into the benchmarks and indicators prepared under the previous activity. The data compilation is then analyzed to make conclusion and recommendation.

6. Prepare a project monitoring and evaluation report. The result of the data

collection and field survey is then used to prepare a draft project monitoring and evaluation report, including the conclusion and recommendation. The technical team should present the draft report to the steering committee for approval.

7. Approve the project monitoring and evaluation report. The steering committee will

examine and approve the report submitted by the technical team. The report will be turned back to the technical team if there are some corrections.

8. Socialize the project monitoring and evaluation report. The project monitoring and

evaluation report, including the conclusion and recommendation, is then socialized. The socialization can be conducted by related institutions through mass media. It can also distributed directly to NGOs and/or public institutions. The institutions concerned ask the NGOs and/or public institutions to participate in the evaluation. The results of the evaluation could be submitted to the Technical Team to be followed-up.


PART V: URBAN MANAGEMENT 5-94 9. Crosscheck the project monitoring and evaluation report. The project executor

accompanied by the Technical Team will crosscheck the project monitoring and evaluation report conducted by the public/NGOs. The team will provide inputs based on the field crosscheck to the technical team to update the report.

10. Finalize the project monitoring and evaluation report. In finalizing the project

monitoring and evaluation report, the technical team should also consider the inputs from the public / NGOs. The final report also includes the conclusion and recommendation of weather the project implementation can be sustained or the project achievement should reviewed.

11. Pay the project executor for the project implementation. If the final report is

completed, the project manager through the project treasurer will pay the project executor for the project implementation. The payment is based on the project implementation payment proposed by the project executor. The activity requires approximately 15% of the total project duration of 60 days.

6.3 Monitoring and Evaluation of Project Benefits 6.3.1 Definition

Project benefit monitoring and evaluation is an activity conducted to assess the impacts and results of the project. This activity is conducted by comparing the field fact-findings against the previously expected project coverage. The assessment of the project benefits is conducted after the project completion.


The process flow chart for project benefit monitoring and evaluation is graphically presented in Figure 5.28 and the procedures are briefly described as follows:

Actor Procedure Bappeda Steering Committee Technical Team


performance evaluation based on the existing indicators and parameters.

2. Finalize the term of reference for performance

evaluation of project implementation. 3. Establish a technical team for project benefit

monitoring and evaluation. 4. Conduct data collection and field survey. 5. Compile socio-technical and socio-economic

data. 6. Prepare a project benefit monitoring and

evaluation report.



FIGURE 5.28 PROCESS FLOW CHART FOR PROJECT BENEFIT MONITORING AND EVALUATION

Bappeda/Technical Institution

START

1. Formulate a draft TOR for performance evaluation based on the exist-ing indicators and parameters.

Steering Committee Technical Team Project Executor


3. Establish a technical team for project benefit monitoring and evaluation.

4. Conduct data collection and field survey.

5. Compile socio-technical and socio-economic data.

6. Prepare a project benefit monitoring and evaluation report.

7. Approve the project benefit monitoring and evaluation report.

8. Socialize the project benefit monitoring and evaluation report.

11. Finalize the project benefit monitoring and evaluation report.

NGO

9. Conduct an external project benefit monitoring and evaluation.

10. Crosscheck the external project benefit monitoring and evaluation report.


PART V: URBAN MANAGEMENT 5-96 Steering Committee Technical Team NGO Project executor Technical Team

7. Approve the project benefit monitoring and evaluation report.

8. Socialize the project benefit monitoring and

evaluation report. 9. Conduct an external project benefit monitoring

and evaluation. 10. Crosscheck the external project benefit

monitoring and evaluation report. 11. Finalize the project benefit monitoring and

evaluation report


The explanatory notes and guidelines for project benefit monitoring and evaluation are as follows: 1. Formulate a draft term of reference for performance evaluation based on the

existing indicators and parameters. Term of Reference (ToR) is formulated by the responsible institution. The ToR covers several tasks of monitoring and final evaluation and project completion report. The ToR includes the project description, monitoring and evaluation benchmarks, project duration, the expected results, and criteria for the selection of project executors.

2. Finalize the term of reference for performance evaluation of project

implementation. The steering committee will finalize the term of reference for performance evaluation of the project implementation. The steering committee chaired by the head of Bappeda has representatives from related institutions as its members. If the term of reference has to be reviewed, it should be turned back to Bappeda or related technical institutions.

3. Establish a technical team for project benefit monitoring and evaluation report.

The establishment of the technical team for project benefit monitoring and evaluation could be undertaken by the related technical institution or by the Technical Team. If the term of reference is to be prepared by a third party, the establishment of the technical team becomes the responsibility of the institution concerned.

4. Conduct data collection and field survey. This activity is will be conducted by the

technical team. The data collection is based on the accepted reports, field condition, and perception of related parties. The field survey is meant to crosscheck the existing data collected before. During the field survey, the physical condition of the project is also documented for further analysis.

5. Compile socio-technical and socio-economic data. The Technical Team will

compile the data collected from the field survey into the benchmarks and indicators prepared under the previous activity. The data compilation is then



analyzed to make conclusion and recommendation. In addition to the physical analysis of project achievements, the financial performance will also be analyzed.

6. Prepare a project benefit monitoring and evaluation report. The result of the field

survey and data compilation will be included in a report enclosed with an analysis on physical and financial achievements as well as the conclusion and recommendation of the project implementation.

7. Approve the project benefit monitoring and evaluation report. Based on the report

submitted by the Technical Team, the Steering Committee will review and approve the submitted report. If there are some corrections, the report will be turned back to the Technical Team for further updating.

8. Socialize the project benefit monitoring and evaluation report. The report will be

disseminated by the responsible institutions. The public institution and NGOs will be invited to participate in an external evaluation of the project benefits.

9. Conduct an external project benefit monitoring and evaluation. The external

evaluation will be conducted by public institutions or NGOs based on the data and information directly obtained from the project and other sources.

10. Crosscheck the external project benefit monitoring and evaluation report. The

project executor accompanied by the Technical Team will crosscheck the external evaluation report. The crosscheck is meant to find out new inputs relevant to project performance, both the physical and financial performance.

11. Finalize the project benefit monitoring and evaluation report. Based on the results

of the crosscheck, the project benefit monitoring and evaluation report will then be updated. The updated report will be presented to the institutions concerned to obtain the conclusion or recommendation of whether the project is considered completed or it should be updated.



7 INSTITUTIONAL CAPACITY BUILDING Institutional capacity building is, as stated above, a consolidation of three supporting functions of urban management i.e. institutional development, human resources development and development of instrument and resources. There are several ways to build the institutional capacity of local government institutions. This chapter, however, only focuses on organization design and human resources development through training. Such processes are considered urgent for the local government in responding to the demands of local government autonomy and decentralization. This chapter includes the following processes: • Organization Analysis and Design • Training Needs Identification • Training Needs Analysis • Training Planning and Programming

7.1 Organization Analysis and Design

7.1.1 Definition Organization Analysis and Design (OAD) is a process which attempts to identify the basic units of an organization, analyzes the activities needed for achieving the organizational goals, as well as coordinates and integrates the organization's activities. The OAD has the following objectives:

To identify the major organizational problems and impacts resulted from the present organizational design.

•

• •

• •

•

To develop a new design or redesign the present organizational setup. To develop a new organizational design that provides a framework to achieve the organization objectives, while minimizing the existing problems. To create a collaborative and integrative pattern. To prepare an implementation plan to create a systematic new or redesigned organization.

Following are the indicators pertaining to the need for OAD:

Growth: expansion of products or services, acquisition of new technologies, vertical integration, diversification, mergers or spin-off. Declining performance: The existing systems and procedures do not work, the productivity is low, and the benefits decrease.

•

Internal issues: new management, employee complaints, inappropriate grouping of functions, excessive management levels.

•

External issues: regulation changes, international policies, competitive action, changes in major markets/customers’ needs.

•

Changing management trends: new approaches, innovations. • The OAD skills are viewed as quite crucial now in this era of autonomy when local governments are given wide latitude in designing and redesigning their own organizations. The process is by itself costly. If it is not carried out appropriately,


PART V: URBAN MANAGEMENT 5-99 however, it can be several times more expensive not only in terms of resources, but also in terms of inefficiency, declining employee productivity, and public dissatisfaction. Under the existing organization, the OAD is initiated and undertaken by the Organization Division under the Municipal Secretariat. The division is, however, assisted by other divisions as the Legal Division and Local Personnel Office. In addition, if it is a redesign activity, then the target organizational unit will also have to be actively involved. Over and above these, the OAD should have the full attention of the highest levels of government officials. In the procedures that follow, the involvement of these units and officials is made possible by an ad hoc functional organization that is established to undertake most of the OAD steps.

7.1.2 Procedures and Process Flow Chart The process flow chart for conducting the OAD is graphically presented in Figure 5.29 and the procedures are briefly described as follows:

Actor Procedure Organization Division

1. Prepares an OAD proposal.

Regent

2. Approves the proposal.

Organization Division

3. Organizes the OAD activities.

Technical Team 4. Formulates the OAD analytical framework.

5. Formulates the mission and goals of the

organization. 6. Identifies the key functions and key

results of the organization. 7. Establishes design criteria.

Steering Committee

8. Conducts a review of interim results.



FIGURE 5.29 PROCESS FLOW CHART FOR ORGANIZATION ANALYSIS AND DESIGN

REGENT

START

2. Approves the proposal.

ORGANIZATION DIVISION LEGAL DIVISION STEERING COMMITTEE

1. Prepares an OAD proposal

3. Organizes the OAD activities.

TECHNICAL TEAM

4. Formulates the OAD analytical framework.

5. Formulates mission and goals.

6. Identifies key functions and key result areas.

7. Establishes the design criteria.8. Conducts a review of interim results.

9. Identifies applicable organizational principles.

10. Formulates and selects alternative org. structures.

11. Develops the proposed org. structure, functional and position charts.

12. Reviews and approves the organizational design.

14. Prepares an implementation plan. 13. Prepares the draft legal basis.

15. Presents the draft legal basis and implementation plan

16. Approves the legal basis and the implementation plan.


PART V: URBAN MANAGEMENT 5-101 Technical Team 9. Identifies applicable organizational

principles. 10. Formulates and selects alternative

organization structures. 11. Develops the proposed organizational

structure, functional chart, and positional chart.

Steering Committee

12. Reviews and approves the organizational design.

Legal Division

13. Prepares a draft legal basis.

Organization Division 14. Prepares an implementation plan. 15. Presents the draft legal basis and the

implementation plan to the Regent.

Regent 16. Approves the legal basis and the implementation plan and endorses them to the Local Legislative Council for approval.

7.1.3 Explanatory Notes and Guidelines The explanatory and guidelines for undertaking the organizational analysis and design are as follows: 1. Prepares an OAD proposal. The proposal should specify what organization is to

be designed or redesigned and the rationale for the conduct of OAD. It should also establish the budget and other resources that need to be allocated, as well as a work schedule and work assignments for accomplishing the steps in the OAD process. The rationale could be anyone or a combination of the foregoing underlying reasons for OAD. The existing format for preparing project proposals to be included in the local government's annual budget can be used for the purpose.

2. Approves the proposal. Approval here means that the proposed OAD activity

can be included in the overall annual budget proposal, most probably as part of its development portion. In accordance with existing regulations, the final approval of the overall annual municipal budget is done by the Local Legislative Council.

3. Organizes the OAD effort. Organizing for the activity here means the distribution

of responsibilities, the clarification of expectations, and the delineation of line of accountabilities for the OAD effort. The functional organization that has been used in the past, which most local governments are familiar with, consists of two levels: the Steering Committee, which formulates the general policies, and the



Technical Team, which translates the policies into detailed implementable recommendations. As to membership, the Steering Committee is usually composed of the heads of local government agencies and the Technical Team, of section and sub-division heads. In an OAD with a wide-ranging scope (sometimes, the design/redesign of several units is undertaken at the same time), the Steering Committee may be chaired by the Head of he Municipal Secretariat or the Assistant Head for General Administration. The Technical Team can then be chaired by the Head of the Organization Division. Minor OAD efforts may be fully supervised by the Head of the Organization Division. As mentioned, related organizational units should all be represented in the functional organization, including the Personnel and Legal Divisions.

4. Formulates the OAD analytical framework. The analytical framework is basically

a further elaboration of the rationale. It should consist of both internal conditions and external challenges that prompted the organizational design or redesign effort. An approach that can be used here is the SWOT (strengths-weaknesses-opportunities-threats) analysis. In the design of a new organizational unit, the analytical framework should highlight the issues, both internal and external, that the new organization must address. In a redesign process, it would be more useful to highlight the current organizational problems.

5. Formulates the mission and goals of the organization. The mission is the

organization's reason for being. In a redesign effort, it is necessary to revisit the organization's mission statement and assess whether it is still relevant to prevailing conditions as well as emerging trends. If necessary, existing mission is revised as dictated by the analytical framework. The goals are basically overarching objectives that translate the mission into what the organization must achieve over the long term.

6. Identifies the key functions and key result areas of the organization. Functions

are activities that the organization must perform to achieve its goals and fulfill its mission. Key result areas are the desired outcomes of the activities, which are either concrete products or observable qualities.

7. Establishes the design criteria. The design criteria are classified into those that

are regarded as generally accepted basic principles of organizational design, and are therefore applicable to all organizations, and those that are unique to the particular situation of the organization being designed or redesigned. Some of the most common criteria are:

Division of labor: the grouping of the smallest number of dissimilar functions to produce more and better work with the same effort.

•

•

•

Functional definition: the clear demarcation of the scope of activities and responsibilities of each unit, sub-unit, and individuals as well as their functional relationships with other units, sub-units, and individuals in the organization. Number of management level: the number of rungs in the organizational hierarchy, with the basic rule that the most desirable is the least possible levels and thus the shortest chain of command.



Span of management or span of control: the number of subordinates under one superior, with the underlying principle that there is a limit to the number of subordinates that a superior can handle, but that the exact number will depend upon factors determining the frequency and time-severity of superior-subordinate relationships.

•

•

•

•

•

Unity of command: a subordinate should report to only one superior. Delegation: decision-making authority should be delegated as far down in the organization as possible, with the dictum of command responsibility that while authority can be delegated, responsibility cannot. Parity of authority and responsibility: the authority needed to undertake a work assignment should correspond to the responsibility over it. Balance: the organization structure must provide a reasonable balance in the size of the various component units, between standardization and flexibility of procedures, between centralization and decentralization of decision making, between the span and level of management, and the like.

Depending on the particular situation in which the organizational design or redesign is being undertaken, some of these criteria may be emphasized over the others. Also, in the particular case of local government agencies, it is usually the case that the maximum number of units and sub-units an agency can have is already pre-set, such that the OAD effort becomes somehow limited to establishing what these units/sub-units and what their functions should be.

8. Conducts a review of interim results. As indicated in the preceding steps, the interim results up to this point are the analytical framework, organizational mission and goals, key functions and key result areas, and design criteria. As each interim result defines, or at least sets the framework for, the succeeding results, it is advisable to conduct the review in the order in which the results have been produced, beginning with the analytical framework and ending with the design criteria.

The review need not end in an approval, but may very well trigger the iteration of the preceding steps until the Steering Committee is satisfied with the interim results. Finally, aside from confirming the correctness of the interim results, the review should end with clear indications as to which of the criteria should be emphasized in the design, including those that are unique to the local-government situation or those arising from the personal preferences of the current local-government leadership.

9. Identifies applicable organizational principles. Organizational principles are

essentially the code of behavior that the organization must adhere to as it pursues its mission, long-term goals, and short-term objectives. For public organization, these could simply be the restatement of the principles of good governance as they apply to the organizational unit being designed or redesigned.

10. Formulates and selects alternative organization structures. The drawing of a

basic organization structure or chart consists of the following sub-steps: RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


Vertical differentiation. This entails the analysis of the key activities identified in a previous step in order to establish the hierarchy and the number of levels in the organization, which set the framework for establishing the communication channels and the authority structure.

•

•

•

Horizontal differentiation. This is alternatively called departmentalization, wherein organizational activities are divided in various ways for purposes of administration. Some of the more common ways of departmentalization are: by function (personnel, finance, marketing, production), product, geographic location, customer base, process (exploration, extraction, refining, distribution), and matrix (a combination of any of the foregoing departmentalization schemes, such as by function and by product).

Integration. This is the process of bringing together segregated parts into larger units, such as sections into divisions, divisions into bureaus, and bureaus into departments. The whole purpose is to achieve coordination and unity of purpose within each individual component unit and within the organization as a whole.

11. Develops the proposed organization structure, functional chart, and position

chart. The results from the foregoing sub-steps are a number of alternative organization structures. An organization structure basically consists of boxes representing organizational units and sub-units as well as lines indicating their hierarchical and horizontal differentiation as well as their integration. Out of these, the one that best meet the design criteria is then selected. A functional chart shows the various functions of the main organizational units, while a position chart identifies the key organizational personnel by their job designations and defines the formal reporting relationships among them.

12. Reviews and approves the organizational design. The review here focuses

primarily on the proposed organization structure, functional chart, and position chart. It is however important also to adequately discuss the concepts used in drawing and screening alternatives that led to the choices now being presented to the Steering Committee.

13. Prepares the draft enabling legislation. There exists a commonly used format for

preparing the enabling regulation for a local government agency. It is proposed, however, that this format be reviewed and, if necessary, revised to accommodate the main outputs of the OAD process.

14. Develops an implementation plan. Depending on how elaborate the plan is

required to be, it may contain a number or all of the following elements:

Cost estimate. The financial outlay for implementing the organization should include not only the one-time direct cost, but also the costs of additional personnel, new training, and more office space.

•

• Benefit analysis. This focuses on the problems that will be corrected, needs that will be responded to or issues that will be resolved as a result of the operation of the new or redesigned organization.



Risk analysis. All factors that may hinder the implementation of the new or redesigned organization and/or its proper functioning once established are identified. The magnitude, probability of occurrence, and manageability of these risks are likewise indicated. Measures to minimize them as well as fallback positions for the organization are then formulated.

•

•

•

Migration strategy. This describes the steps needed to reach the desired structure or level of operation of the new or redesigned organization, including the preparation needed for each of the steps: How long does it take to promote or hire an employee who will occupy a key position in the new organization? When can the new office space be ready for occupancy? Will systems have to be modified? By whom? When? Implementation schedule. Similar to the OAD proposal, the implementation schedule should define the tasks to be performed, the distribution of these tasks among the responsible units/persons, and the timetable for performing and completing them.

The order of presentation of the foregoing elements in the implementation-plan document may vary, depending on existing practices and expressed preferences of concerned local government officials.

15. Presents the draft enabling legislation and implementation plan to the

Mayor/Regent. The presentation of the enabling legislation should also devote adequate time to the highlights of the OAD process to provide the proper backdrop for the proposed organizational design. Aside from the acceptance of the implementation plan, commitment of support from concerned units/officials should also be generated during the occasion.

16. Approves the draft legislation and implementation plan and endorses them to the

Local Legislative Council for enactment/approval. As clearly indicated, the final approval of the organizational design is in the hands of the Local Legislative Council, which enacts the needed enabling legislation. Deliberations in the council may involve, aside from the Organization and Legal Divisions, also some of the members of or the entire Steering Committee and Technical Team. Steps in the OAD process may be repeated to refine or revise and finalize the proposed enabling legislation.

7.2 Training Needs Identification

7.2.1 Definition

The definition of training needs identification (TNI) can be derived from the outputs the process intends to achieve. These outputs are:

Performance constraints being experienced by a work unit and by an individual worker

•

•

Training topics/courses that can alleviate/solve the constraints and improve the performance of the unit



Position/job titles, unit locations, and number of people needing the training or should participate in each training course.

•

Where courses are available that correspond to the identified training topics, the TNI process can be immediately followed by steps leading to training implementation, such as training programming and budgeting. In cases where curricula and/or courses have to be developed, however, then the results of the TNI will have to be subjected to a more rigorous process of training needs analysis. The TNI that is proposed here is one of the many methodologies that have been used. The methodology relies heavily on interviews and surveys, and can be viewed as an ad hoc activity that can be undertaken if and when needed. Its results can be used by themselves or in combination with the results of other more routinized processes, such as staff performance appraisal and job analysis. Under the existing organizational setup of local governments, human resources development is under the responsibility of the Personnel Division. As such, this division is designated as the lead agency in conducting training needs identification as well as in undertaking the succeeding steps of training programming and budgeting, implementation, and monitoring and evaluation.

7.2.2 Procedures and Process Flow Chart The process flow chart for conducting TNI is presented in Figure 5.30. The procedures are as follows: Actor Procedure Personnel Division 1. Prepares a work program.

2. Organizes for the activity. Working Group 3. Conducts structured interviews.

4. Summarizes unit training needs and target groups.

5. Administers questionnaire.

6. Reconciles unit and individual training

needs.

7. Presents identified unit and individual training needs.

Steering Committee 8. Reviews and approves the identified

training needs.

9. Prescribes prioritization criteria.



FIGURE 5.30 PROCESS FLOW CHART FOR CONDUCTING TRAINING NEEDS IDENTIFICATION

PERSONNEL DIVISION STEERING COMMITTEE WORKING GROUP

START

9. Prescribes prioritization criteria.

10. Validates, consolidates,and prioritizes trainingneeds and target groups.

1. Prepares a work program.

3. Conducts structured interviews.

4. Summarizes unit training needs and target groups.

8. Reviews and approves the identified training needs.

11. Prepares TNI report and submits it to the Personnel Division.

6. Reconciles unit and individual training needs.

5. Administers questionnaires.

2. Organizes for the activity.

7. Presents identified unit and individual training needs.

Working Group 10. Validates, consolidates, and prioritizes

identified training needs and target groups.

11. Prepares a training needs identification

report and submits it to the Division of Personnel.


The explanatory notes and guidelines for conducting TNI are as follows: 1. Prepares a work program. TNI is usually undertaken as part of or as a precursor

to broader activity, such as training planning and programming. Even so, it is always advantageous to have a clear plan of action toward TNI's completion, which, if necessary, shows its linkages with the other components of the aforementioned broader activity. At its simplest form, the work program should



clearly define the tasks, task assignments, and the timetable for undertaking and completing such tasks.

2. Organizes for the activity. Organizing for the activity here means the distribution

of responsibilities, the clarification of expectations, and the delineation of line of accountabilities for the TNI. The functional organization that has been used in the past, which most local governments are familiar with, consists of two levels: the Steering Committee, which formulates the general guidelines, and the Working Group, which actually perfroms the various TNI tasks. As to membership, the Steering Committee is usually composed of the heads of local government agencies and the Working Group, of lower-level staff members. Members of both the Steering Committee and the Working Groups ay be drawn from the Personnel Dvision as well as from agencies that will be covered by the activity.

3. Conducts structured interviews. Structured interviews are conducted with heads

of target units. A set of questions may be prepared for this purpose. The interview process can be described briefly as follows:

The interviewer fills in the functions of the unit. Such functions are usually found in the legal framework of the organization.

•

•

The interviewee (unit head) provides the following information:

Any additional functions of the unit that are not included in the legal framework Constraints being experienced in performing the functions Proposed training (topics/courses) that can alleviate/solve the constraints

and improve the performance of the unit For each training topic, the target training population in terms of

position/job titles, number of personnel per position/job title, and sub-units where these personnel are located.

4. Summarizes unit training needs and target groups. A summary of training needs

and target groups is prepared for each unit. It should spell out all the training topics identified by the unit head, and for each training topic the target training population in terms of position/job titles, number of personnel per position/job title, and sub-units where these personnel are located.

Summarization also involves the preparation of a supplementary report on performance constraints that cannot be addressed by training. Such constraints may include, for example, inappropriate organization structure, unclear distribution of responsibilities, unclear vertical and horizontal relationships, inadequate number of personnel, lack of effective and efficient management and administrative systems and procedures, inefficient financial management or inadequate financial resources, lack of tools and equipment, and the like. This supplementary report should then be circulated for appropriate action.

5. Administers questionnaire. Based on the summary of unit training needs and

target groups, a questionnaire is administered to all individual position/job holders that have been identified by the unit head as needing training. The questionnaire, to be answered by the respondents unaided, is intended to



generate the following information from each respondent: present tasks, constraints being encountered in performing the tasks, and proposed training (topics/courses) that can alleviate/solve the constraints and improve the performance of the respondent.

6. Reconciles unit and individual training needs. Summarized unit and individual

training needs are reconciled with each other. Reconciliation will basically entail the use of common, most accurate topic/course titles in both summaries.

7. Presents identified unit and individual training needs. The presentation is meant

as a mid-activity review. 8. Reviews and approves the identified training needs. In the review, the Steering

Committee should focus on how the identified training needs conform with existing policies and priorities of the local government.

9. Prescribes prioritization criteria. The criteria are meant to establish the order in

which training needs have to be addressed and the chronological order for implementing the training courses. Likewise, they should be able to define the extent to which resources should be allocated and attention devoted to such needs and courses. The criteria may be based on the importance and urgency of the performance constraints or of the functions and tasks to be addressed as well as the amount of resources available.

10. Validates, consolidates, and prioritizes identified training needs and target

groups. The initial validation consists of checking the identified training topics/courses against benchmarks: first, the identified performance constraints and second, the functions of a unit or the tasks of an individual respondent.

The summarized unit and individual training needs are then consolidated: for each training topic, where the target training population is identified in terms of the positions/jobs needing the training, the unit and sub-unit locations of the personnel holding the position/job, and the number of personnel per position/job needing the training. Each training topic is properly designated as to whether it has been identified by the unit head, the position/job holders, or both.

Final validation and prioritization is done in a meeting with the direct superiors of the respondents to the questionnaire. In the same meeting, the proposed criteria for prioritization are presented, discussed, and agreed upon, after which the participants are asked to prioritize the identified training topics/courses. Also, for each training topic/course, the target training participants are prioritized by position/job when their total number exceeds a manageable size.

11. Prepares training needs identification report and submits it to the Personnel

Division. A TNI report is prepared, containing the consolidated, validated, and prioritized training needs (topic/courses) and target training population. An indicative annual training schedule for the next three to five years is included to serve as basis for a more detailed medium-term training program. The report is then submitted to the Personnel Division to serve as basis for preparing annual training-budget proposals.



7.3 Training Needs Analysis

7.3.1 Definition Training needs analysis (TNA) is conducted as a follow-up to training needs identification (TNI) and as a basis for course development. Its main objective is to identify the knowledge and skills contents of a training topic/course resulting from TNI. The outputs that can be expected from the process are: knowledge and skills content of each training topic/course resulting from TNI, intended impact of training on either the performance of present tasks and/or the career development of the respondent, and indications or manifestations of impact as basis for post-training evaluation. TNA is conducted by a course developer in collaboration with prospective target participants of the course to be developed and their immediate superiors. Data gathering is done mainly through interviews and job observation. The process starts under the assumption that the course to be developed has already been identified.

7.3.2 Procedures and Process Flow Chart The process flow chart for conducting TNA is graphically presented in Figure 5.31. The procedures are as follows: Actor Procedure Course Developer 1. Identifies possible Interviewees.

2. Conducts Interview. Target Participant 3. Identifies the tasks related to the training

topic.

4. Breaks tasks into sub-tasks.

5. Determines knowledge and/or skills requirements of each sub-task.

Immediate Superior 6. Indicates the desired improvements in

terms of performance, conditions, and criterion components.

Course Developer 7. Observes job performance. 8. Interviews another target participant.

9. Summarizes the results of TNA interview.

Immediate Superior 10. Confirms and validates the interview

results. Course Developer 11. Develops a hierarchy of objectives. RDPRP Triple-A \ Aturan Main for Bantul Regency \ Status: Final \ 31 March 2005


12. Formulates an instructional strategy.

13. Prepares course description summary. FIGURE 5.31 PROCESS FLOW CHART FOR CONDUCTING TRAINING NEEDS

ANALYSIS

IMMEDIATE SUPERIOR COURSE DEVELOPER TARGET PARTICIPANT

START

11. Develops a hierarchy of objectives.

1. Identifies possible interviewees.

3. Identifies tasks related to training topic/course

9. Summarizes the results of TNA interview.

12. Formulates an instructional strategy.

5. Determines knowledge/ skills requirements of sub-tasks.

4. Breaks tasks into sub- tasks.

2. Conducts interview.

7. Observes job performance.

6. Indicates the desired improvements.

8. Interviews another participant.

10. Confirms and validates the interview results.

13. Prepares course- description summary.

7.3.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for conducting TNA are as follows: 1. Identifies possible Interviewees. For each training topic/course, two or three

target participants are identified as possible respondents to an in-depth interview. The identification shall primarily be based on the TNI Report.


PART V: URBAN MANAGEMENT 5-112 2. Conducts interview. Initially, one target participant is interviewed, with the other

identified respondents serving as reserves, either for conducting another interview (if the results from the first respondent are unsatisfactory) or for confirmation and validation of interview results. The interview is basically meant to assist the respondent-target participant in playing his part in the TNA process.

3. Identify the task or tasks related to the training topic/course. Using the

questionnaire he has accomplished during the TNI, the respondent identifies the particular task or tasks related to the training topic/course.

4. Breaks tasks into sub-tasks. A task is defined as an action sequence organized

through time to accomplish an end result. Breaking a task into sub-tasks means the identification of the actions/steps comprising it.

5. Determines the knowledge and/or skills requirements of each sub-task.

Indications of knowledge and skills requirements are: (1) equipment, materials, working procedures, techniques, and processes used; (2) the required mental application, such as initiative, adaptability, judgment, and mental alertness; (3) the required dexterity and accuracy or manual manipulative ability; and (4) specific content of a specific job situation, such as policies, rules, regulations, structures, and standard operating systems and procedures that are unique to the organization.

6. Indicates the desired performance improvements. These shall be expressed in

terms of clear behavioral patterns that the respondent expects to exhibit after the training. When possible, such improvements shall be expressed in quantitative terms. Each desired performance improvement (or performance objective) shall consist of the following:

Performance component, which answers the question "What should the trainee be able to do after the training?"

•

Conditions component, which answers the question "Under what conditions should the trainee be able to do it?"

•

Criterion component, which answers the question "How well must it be done?" This may include any or all of the following: speed/time limit for task performance/delivery of output, accuracy or tolerance for error, and level of quality of task performance and/or output.

•

7. Observes job performance. The course developer may observe the target

participant as the latter performs the tasks related to the particular training topic/course and record the action sequence of each task. From the observation, the course developer may also infer the knowledge and skills requirements of each sub-task according to the definitions provided above. Observation is however effective only for manual tasks, and may have limited application for mental tasks.

8. Interviews another target participant. The course developer may choose to

interview another target participant to gather additional data on the job/tasks or confirm the data that have already been gathered.


PART V: URBAN MANAGEMENT 5-113 9. Summarizes the results of TNA interview. For each training topic/course being

analyzed, the following data are provided: tasks related to the training course, breakdown of each task into sub-tasks, knowledge and skills required to perform each sub-task, and the desired performance improvements for each task (with indications of performance, condition, and criterion components).

10. Confirms and validates interview results. Confirmation and validation shall be

done with the immediate superior of the target participant, with emphasis on the identified performance improvements that should result from training (performance, condition, and criterion components).

11. Develops a hierarchy of objectives. The starting point for this step is the desired

performance improvements that have been identified during the TNA interview. Performance improvements answer the question "What should the job holder be able to do after the training?" and, as such, represent the terminal objectives of a particular course. Terminal objectives serve as the final test of whether training has been successful and should later be the focus of training impact evaluation.

To achieve the terminal objectives, trainees need to master a set of subordinate knowledge and skills, which can be derived from the knowledge and skills requirements of the tasks related to the course/topic being analyzed. These subordinate knowledge and skills are equivalent to the course's enabling objectives. Further down the line, subordinate knowledge and skills might be necessary to achieve the enabling objectives. Doing this repeatedly until the most basic subordinate knowledge and skills are determined, one arrives at what may be called an objective "tree", or a series of terminal and several levels of enabling objectives arranged in a hierarchy. Enabling objectives serve as the basis for determining and evaluating the success of training events/instructional activities.

12. Formulates an instructional strategy. This means making a decision on what

enabling objectives to achieve, again considering the terminal objectives, and thus the overall scope of a course. In other words, a cutoff will have to be made, with some enabling objectives being left out, depending on, among others, the time and resources available for training and the profile of the prospective participants. The enabling objectives that have been left out are then considered the prerequisites, or knowledge and skills that prospective participants should first master before they can be admitted into the course. Prerequisites can be the subject of an admission test or pre-training evaluation.

The instructional strategy should likewise specify what to do with the prerequisites, one option being that they are left entirely as the responsibility of the prospective training participants. Other options are to develop a separate course or assist the prospective training participants in mastering them through reading materials/self-study.

13. Prepares course-description summary. For each training topic/course, the

summary description provides the following pieces of information, which are derived from the two immediately preceding steps:

Terminal training objectives or behaviors that have to be exhibited by the training participants on the job after the training

•



Enabling objectives or subordinate knowledge and skills that have to be acquired by the trainees for them to be able to achieve the terminal objectives, including indications of how to measure the attainment of these objectives

•

•

•

Any prerequisite knowledge and skills that prospective training participants must possess for them to qualify as participants in the training topic/course being analyzed Target training population of the topic/course (jobs/positions, number of personnel per job position/job title needing training, unit and sub-unit locations of personnel needing training).

The course-description summary can be used as a detailed course syllabus that can be used for the development of instructional materials and generally for the implementation and monitoring and evaluation of the course.

7.4 Training Planning and Programming

7.4.1 Definition

Training planning here is defined as the formulation of a curriculum plan, which, in turn, is defined as courses of study arranged logical groupings that can satisfy the identified training needs of various staff levels in various local government agencies. As a process, training planning can be undertaken soon after the training needs identification exercise. Training needs analysis is therefore not along critical path, but is conducted as a side activity for developing training needs/topics into implementable courses. The assumption, therefore, is that most of the identified training needs can be met by existing courses available in-house or in external training institutions both domestic and overseas. At its core, a training program is an indicative schedule for implementing the courses contained in the curriculum plan over a medium-term horizon of anywhere from three to seven years. As a proposal that will serve as a blueprint, it also needs to quantify the resources needed and define responsibilities for training implementation, including the roles of external training institutions and other training implementation partners.

7.4.2 Procedures and Process Flow Chart The process flow chart for preparing a training plan and program is in Figure 5.32. The procedures are as follows: Actor Procedure Training Subdivision 1. Determines the logical order of courses.

2. Creates a training map.

3. Presents the training map to the Head of Personnel Division.


PART V: URBAN MANAGEMENT 5-115 Head of Personnel Division 4. Articulates medium-term strategic

objectives of training.

5. Indicates the amount of resources available for training.

6. Prescribes criteria for prioritizing training

courses. Training Subdivision 7. Prepares a medium-term training program. Head of Personnel Division 8. Reviews and finalizes the training

program.

9. Presents the medium-term training program to the Mayor/Regent.

Mayor/Regent 10. Reviews and approves the medium-term

training program. FIGURE 5.32 PROCESS FLOW CHART FOR TRAINING PLANNING AND

PROGRAMMING

MAYOR/REGENT HEAD OFPERSONNELDIVISION TRAINING SUBDIVISION

START

1. Determines the logical order of courses.

2. Creates training map.

9. Presents the medium- term training program.

7. Prepares a medium-term training program.

3. Presents the training map.

5. Indicates the resources available for training.

6. Prescribes criteria for prioritizing training courses.

10. Reviews and approves the medium-term training program.

8. Reviews and finalizes the medium-term training program.

4. Articulates medium-term strategic objectives of training.



7.4.3 Explanatory Notes and Guidelines Following are the explanatory notes and guidelines for training planning and programming: 1. Determines the logical order of courses. The first step is to group together

similar courses. For this purpose, functional grouping may be used. For example, in the case of the urban development functions discussed above, all courses that relate to project implementation could form one group, and those related to operation and maintenance another group. Each group of course can then be designated as a curriculum, such as the project implementation curriculum or the operation and maintenance curriculum Within each group, courses can be arranged in various ways and, in most cases, the final arrangement makes use of a combination of methods. One method is to pattern the arrangement with the sequential order of functions or tasks the performance of which the courses are meant to improve. Again, in the case of the urban management functions, for example, the project-implementation function naturally occurs before operation and maintenance.

Another method is by degree of complexity, such that there is a progression in the knowledge and skills imparted to the trainees from the simplest to the most complex. In using this method, one can refer to the enabling and terminal objectives of courses. A course whose terminal objective serves as, or is very similar to, another course's enabling objective should obviously be implemented. Courses that are functionally neutral and of relatively the same degree of complexity are said to be also chronologically neutral: in relation to one another, they can be scheduled anytime within a training calendar.

2. Creates a training map. What results from the foregoing are courses in each

group arranged in a hierarchy, as shown in an example in Figure 5.33.

Doing the same for the other course groups and plotting how they relate with one another yield the what might be called a training map, which is basically a graphic representation of the training plan. The map has the following major uses:

Determining the training track of each local government personnel. Each employee, depending on his qualifications, interest, and potential, can at once be provided with an overall direction for competence building as he goes up the local government's career ladder along a given functional specialization.

•

• Monitoring and evaluating an employee's level of knowledge and skills. Although the map is not being offered here as a stand-alone instrument for performance evaluation by plotting the progress of an employee along the map, one can, at a glance, have an idea of such employee's level of competence and may therefore align his duties and responsibilities or plan his next training accordingly.



FIGURE 5.33 EXAMPLE OF A HIERARCHY OF COURSES (FOR PROJECT IMPLEMENTATION)

PROGRESS

MONITORING ANDREPORTING

COMPLETION ANDACCEPTANCE

TESTING

CONSTRUCTIONSUPERVISION

PROJECTFINANCIAL

ADMINISTRATION

PROCUREMENTAND LOGISTICSMANAGEMENT

DED OF SOLIDWASTE FINAL

DISPOSAL SITE

DED OF ROADSAND BRIDGES

DED OF SEWAGETREATMENT

PLANT

DED OF DRAINAGENETWORK

DED OFSEWERAGENETWORK

DED OF WATERTRANS. AND DIST.

SYSTEM

DED OF WATERPRODUCTION

SYSTEM

THEMATICMAPPING

SURVEYING

Selecting training courses and participants. Related to the foregoing use, the map makes it easier to identify a course fo an employee at a given staff level, who is performing tasks under a certain function and is exhibiting performance deficiencies. Conversely, it would likewise be easier to select appropriate participants to a training course.

•

•

•

Preparing a training program. Since the map illustrates the chronological and hierarchical continuity among curricula, a training planner/programmer can simply adopt such continuity in scheduling the implementation of various courses and be assured that each succeeding course builds up on the knowledge and skills covered by the preceding course or courses. Designing/developing a course. The logical sequencing of courses implies the limits of the contents of a particular course in relation to other courses preceding and following it in terms of chronology and/or hierarchy. Thus, it serves as a reminder to a course developer not to over- or under-design a course, while providing hints on relevant interfaces among various courses.


PART V: URBAN MANAGEMENT 5-118 3. Presents the training map to the Head of Personnel Division. The presentation

should focus, again, on the logical arrangement of courses. During the presentation, it might be advisable to invite what might be called subject-matter experts, or local government personnel who are actually engaged in the management and performance of functions on which training will be conducted.

4. Articulates medium-term strategic objectives of training. The medium-term

objectives of training should dovetail/support the overall medium-term strategic objectives of the local government. The principal question to be answered in this regard is how training can facilitate or help in the achievement of such overall objectives.

5. Indicates the amount of resources available for training. What is expected here

is merely a 'ballpark' figure, since budget allocation for training will be determined annually during the budgeting process. The estimate can be based on previous experience, emerging trend previous pronouncements of higher-level government officials, particularly the municipality's chief executive.

6. Prescribes criteria for prioritizing training courses. The medium-term strategic

objectives of training, as articulated in the previous step should already be able to provide the main criteria for prioritizing the various courses in the training map. In addition, the following criteria may also be used:

Impact: short- and long-term effect of training if conducted, an if not conducted.

•

•

•

•

•

•

Scope: prevalence of the need in terms of how many organizational units and personnel are affected by it. Time: urgency of the need of the possibility that training will lose its impact if conducted later. Need type: organizational (job-related) as opposed to personal. Feasibility: in terms of resources required, the time available for preparatory activities, and the availability of target participants. Opportunity cost: other benefits that will be foregone if training is conducted.

7. Prepares a medium-term training program. The preparation of the training

program can be broken down further into the following sub-steps:

Determine the priority of each course on the basis of a set of criteria that is finally adopted.

•

•

•

On the basis of the number of the target training participants and the recurrence of the training need that the course addresses, determine the frequency at which each course should be conducted.

Prepare a medium-term course implementation schedule broken down into annual portions.



Identify prospective course implementor. •

•

•

Estimate the cost of implementing each course and prepare and prepare a medium-term training budget broken down into annual portions.

Prepare the training-program document.

8. Reviews and finalizes the training program. Again consultations with subject-

matter experts, heads of target units, and a sample of target training participants are proposed as part of the review and finalization process.

9. Presents the medium-term training program to the Mayor/Regent. During the

presentation, the same people as have been consulted during the review and finalization process may be invited.

10. Reviews and approves the medium-term training program. The approval is

primarily signifies that the medium-term training program can be used as reference for preparing annual proposals for training budget, which constitutes of the overall local-government budget. The approval of the local government's annual budget is done by the Local Legislative Council, as will be discussed in the process that follows. The preparation of the annual training budget is assumed to be part of the annual Rakorbang process.


PART VI: INTER-MUNICIPAL COOPERATION 6-1

PART VI: INTER-MUNICIPAL COOPERATION 6 There is the concern that local government autonomy will engender isolationist tendencies, if not arrogance, among local governments. Healthy competition may degenerate into a free-for-all, no-winner struggle of one local government against another. Under this situation, there is a well-founded fear that local governments could compromise ‘good business sense’ as well as environmental-protection standards so as to lure more investment funds into their respective territories. There is thus a commonly accepted need to foster stronger inter-municipal cooperation among local governments in DIY under what may be called ‘win-win’ arrangements. There exist real benefits in the economies of scale and scope that can be gained from inter-municipal cooperation, including the provision of costly infrastructure facilities and services that would otherwise be unaffordable to a single local government, avoidance of wasteful duplication of service provision, optimal utilization of resources through complementation, and cross-marketing and mutual promotion of each other’s unique endowments. Recognizing the foregoing realities, the Special Province of Yogyakarta, since the early 90s, has endeavored to put in place a formal mechanism for forging inter-municipal cooperation among its various local governments. This mechanism is the Joint Secretariat, which has evolved over the years in both form and functions to embrace more and more of the cross-boundary issues among the local governments in the province. As presently constituted, the Joint Secretariat has been created through Joint Decree No. 09/Perj/BT/2001, No. 38/Kep. KDH/2001, and No. 03 Tahun 2001 respectively of the heads of the local governments of the regency of Bantul, the regency of Sleman, and the city of Yogyakarta. The decree, in turn, was based on an approval from each local government's Local Legislative Council for the executive branch to enter into a cooperation agreement with other local governments. As stated in the joint decree, the main function of the Joint Secretariat is to achieve a well-balanced development within the urban agglomeration of Yogyakarta through the synchronization of the activities of the three concerned municipalities, especially in the planning, implementation, operation and maintenance, and monitoring and evaluation of urban infrastructure facilities and services. The chairmanship is rotated among the three Heads of the Municipal Secretariat, with the position of secretary similarly rotated among the three Heads of the Municipal Development Planning Board. Its core members are heads of local government agencies responsible for planning, finance, program preparation, public administration, and legal affairs. Heads of other local government agencies as well as representatives of community and private-sector interest groups are invited in the deliberation of the Joint Secretariat as the need arises. For the most part, therefore, the processes that follow pertain to those that the Joint Secretariat is expected to follow as it resolves inter-municipal issues or pursues endeavors that are equally beneficial to all the concerned local governments.



1 SPATIAL PLANNING AND DEVELOPMENT

1.1 Definition Co-operation among local governments in spatial planning and development is one involving two or more regencies/municipalities either within the province or inter-provinces in spatial field in accordance with the same needs, vision and mission. In relation with Law No. 2/1999 on Local Government (Article 87), the co-operation is governed with the joint decree and is followed- up with the creation of Inter-municipal Unit.

1.2 Procedures and Process Flow Chart The process flow chart for inter-municipal spatial co-operation is graphically shown in Figure 6.1. The procedures are described as follows:

Actor Procedure Local Government Institution

1. Identify potentials and problems of spatial

planning for co-operation.

Bappeda (Local Development and Planning Board)

2. Create a forum for inter-municipal spatial cooperation.

Joint Secretariat

3. Prepare the framework for inter-municipal spatial cooperation.

4. Prepare a draft MOU for Cooperation.

Bappeda 5. Synchronize the draft MOU for Cooperation.

Regent 6. Approve the draft MOU for Cooperation.

Local Legislative Council

7. Review and approve the draft MOU.

Regent 8. Signs of the MOU for inter-municipal spatial cooperation

Joint Secretariat

9. Prepare the detailed activity of Inter-municipal Spatial Cooperation (RKR KTR A-D).

10. Prepare the activity implementation

Bappeda 11. Coordinate the relevant institutions/units

Local Government Institution

12. Conduct the activity

Joint Secretariat 13.Evaluate and monitor the activity.



FIGURE 6.1 PROCESS FLOW CHART FOR INTER-MUNICIPAL COOPERATION IN SPATIAL PLANNING AND DEVELOPMENT

REGENT JOINT SECRETARIAT BAPPEDA

2.Create a forum for inter-municipal spatial cooperation

6. Approve the draft MOU for cooperation7. Review and approvr the draft MOU.

5. Synchronize the draft MOU for cooperation

LOCAL LEGISLATIVE COUNCIL

1. Identify potentials and probllems of spatial planning for co-operation

LOCAL GOVERNMENT INSTITUTION

4. Prepare a draft Memorandum of Understanding (MOU) for cooperation.

3. Prepare the framework for inter-municipal spatial cooperation.

START

8. Signs of the MOU for inter-municipal spatial co-operation

9. Prepare the detailed activity of inter-municipal spatial co-operation (RKR KTR A-D)

10. Prepare the activity implementation. 11. Coordinate the relevant institutions/units 12. Conduct the activity

13. Evaluate and monitor the activity



1.3 Explanatory Notes and Guidelines The procedures for inter-municipal co-operation in spatial planning and development consist of 14 measures: 1. Identify potentials and problems of spatial planning for co-operation. For the first

measure, each local government attempts to identify its spatial program on the boundary zones, especially the urban zone, which is possible to establish co-operative management based on the same vision and mission of development. The cooperation may be focused on boundary areas. The activity will be conducted by the Spatial Technical Team or related government institutions.

2. Create a cooperative forum for inter-municipal units. After the first measure, two or

more local governments, which will have cooperation, conduct a workshop on spatial planning and development. During the workshop the agreement for cooperative spatial planning and development should be achieved. Each local Bappeda is responsible to conduct this workshop and presents the result to the Joint Secretariat. This activity will be conducted by the Spatial Steering Committee of the cooperating regencies/cities.

3. Prepare the framework for inter-municipal spatial cooperation. The cooperative

forum will be follow up by define the framework for spatial co-operation such as right and obligation, usefulness and advantages, including its funding. The field survey may be conducted, if necessary. The personnel of the Joint Secretariat come from the units responsible for spatial development of the each regency/city, with expert qualification (perhaps the same level as the division head).

4. Prepare a draft memorandum of understanding (MOU) for cooperation. The co-

operative framework for stage 1 will be followed up by discussion on the detailed materials for cooperation, and this will serve as the materials of the MOU. The activity agreed upon during the technical consultation will be defined in the form of Draft MOU, which is already approved by the technical officials delegated by each of the local government heads.

5. Synchronize the draft MOU for co-operation. The draft MOU having been approved

by the technical official, and each Local Development Planning Board (Bappeda) or Local Spatial Steering Committee, is reviewed, especially pertaining to the usefulness and synchronization of the spatial cooperation program, including its funding. If the agreement has been achieved, the draft MOU will then be consulted with the Regent for approval.

6. Approve the Draft MOU for cooperation. The draft MOU having been approved by

the Regent will then be consulted with the Local Legislative Council for responses and agreement. This should be done realizing that the cooperation program may also become a burden for the community. Therefore, the approval from the Local Legislative Council is necessary.

7. Review and approve the draft MOU for cooperation. The draft MOU having been

approved by the Regent will then be reviewed by the Local Legislative Council. If the cooperation does not inflict any loss to all parties, the Local Legislative Council will then approve the MOU.


PART VI: INTER-MUNICIPAL COOPERATION 6-5 8. Signs of the MOU for inter-municipal spatial cooperation .The draft MOU agreed

upon by the respective Local Assembly will then be brought to the inter-municipal unit meeting to be signed. The MOU will be signed by each of the local government heads. The signed MOU is a binding agreement and must be complied with, and implemented, by the parties involved in the agreement.

9. Prepare the detailed activity of inter-municipal spatial cooperation (RKR KSTR A-D).

The Joint Secretariat will prepare technical explication of the MOU into the joint spatial development programs. The detailed description of the cooperation includes the activities, objectives, schedule of project implementation, project executor, funding, benefit-beneficiaries, and potential impacts (environment, social, economy, culture).

10. Prepare the activity implementation. Based on the principles of the local

government autonomy, the preparation of the program implementation will be conducted by the local government itself. The activity will be focused on the synchronization of the inter-municipal program implementation. In this context, the local representatives in the Joint Secretariat will become facilitators.

11. Coordinate the related institutions/unit. For the implementation of the RKR KSTR A-

D, Bappeda will conduct an institutional coordination in all local government. The coordination also includes the establishment of a working unit serving as a project executor. This is important realizing that the spatial program is of multi-sectoral in nature.

12. Conduct the activity. Upon the designation of working units responsible for the

activity, inter-municipal communication should, therefore, be intensified especially in the Joint Secretariat. The implementation will always be under the Joint Secretariat’s control, including its activity reporting.

13. Evaluate and monitor the activity. The Joint Secretariat, aside from serving as the

facilitator and activator in the RKR KSTR A-D implementation, will also have to establish the evaluation team. This evaluation team will consist of Program Evaluation Team constituting the officials of related units in each regency/city. The important things to be taken into account in the evaluation are the processes that take place and the benefits gained by the respective regency/city. The first cooperation results are usually not successful, because the programs implemented by two or three parties are still in the stage of learning. The weakness and successfulness of the programs should be notes of recommendation for the next cooperation.



2 INFRASTRUCTURE SERVICE DELIVERY

2.1 Definition Co-operation among local governments in infrastructure service delivery is one involving two or more regencies/municipalities either within the province or inter-provinces in infrastructure services in accordance with the same needs, vision and mission. In relation to Law No. 22/1999 on Local Government Autonomy (Article 87), the co-operation is governed with the joint decree and followed up with the creation of Inter-municipal unit.

2.2 Procedures and Process Flow Chart The process flow chart for infrastructure service delivery is graphically presented in Figure 6.2. The procedures are briefly described as follows:

Actor Procedure Local Government Unit

1. Prepare a proposal for a joint management for infrastructure service delivery.

Bappeda 2. Collect and select the proposals.

Joint Secretariat 3. Formulate a joint management in infrastructure service delivery.

4. Formulate a draft Memorandum of

Understanding (MOU) for the joint management in infrastructure service delivery.

Bappeda 5. Review and synchronize the draft MOU for the

joint management in infrastructure service delivery.

Regent 6. Approve the draft MOU.

Local Legislative Council

7. Review and legalize the draft MOU for the joint management in infrastructure service delivery.

Regent 8. Signs the MOU for the joint management in

infrastructure service delivery.

Joint Secretariat 9. Formulate the detailed activity for the joint management.

10. Prepare an implementation schedule.

Local Government Institution 11. Conduct the activity.

Joint Secretariat 12. Evaluate and monitor the activity.



FIGURE 6.2 PROCESS FLOW CHART FOR INFRASTRUCTURE SERVICE DELIVERY

REGENT JOINT SECRETARIAT BAPPEDA

2. Collect and select the proposals6. Approve the draft MOU.7. Review and legalize the draft MOU for the joint management in infrastruture service delivery.

5. Review and synchronize the draft MOU for the joint management in infrastructure service delivery.

LOCAL GOVERNMENT AGENCY

1. Prepare proposal for a joint management in infrastructure service delivery.

LOCAL GOVERNMENT INSTITUTION

4. Formulate a draft Memorandum of Understanding (MOU) for the joint management in infrastructure services delivery.

3 Formulate a joint management in infrastructure service delivery.

START

8. Signs the MOU for the joint management in infastructure service delivery.

9. Formulate a detailed activity for the joint management.

10. Prepare an implementation schedule. 11. Conduct the activity.

12. Evaluate and monitor the activity.



2.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for infrastructure service delivery are as follows: 1. Prepare a proposal for a joint management in infrastructure service delivery. In

principle, the proposal for the joint management can be executed by the units involved in the infrastructure sectors (Transportation, Drainage, Water Supply, Sewerage and Sanitation or Solid Waste) existing in each local government. The proposal should be coordinated with Bappeda in each local government that will conduct the cooperation.

2. Collect and select proposals for the joint management in infrastructure service

delivery. An initial meeting should be organized at the provincial Bappeda to collect and select existing proposals. Institutions invited in the meeting are Sekwilda (the provincial government secretary), Bappeda (Provincial Development and Planning Board), Bagian Penyusunan Program (Division of Program Formulation), Bagian Hukum (Division of Legal Affairs), Bagian Keuangan (Division of Financial Affairs), Tata Laksana (Division of Organization) and other executing units (Public Works Department, Water Enterprises, etc.). The meeting will decide whether or not the proposal is feasible.

3. Formulate a joint management in infrastructure services delivery. The local

government representatives assigned in the Joint Secretariat will formulate a framework for a joint management in infrastructure services delivery.

4. Formulate a draft Memorandum of Understanding (MOU) for the joint management

in infrastructure services delivery. Through the discussion in the Joint Secretariat, all technical, financial, and organizational alternatives (types of cooperation, sharing of lost or profits, responsibilities, involvement of private sectors or not) should be evaluated and a final proposal should be prepared. Endeavors are needed in order that the MOU conforms to the existing regulations. Following is an example of indicative table of contents of the MOU:

• CHAPTER I : GENERAL • CHAPTER II : GOALS AND OBJECTIVES • CHAPTER III : SCOPE OF WORK • CHAPTER IV : INFRASTRUCTURE MANAGEMENT • CHAPTER V : SERVICE FEE AND TARIFF SETTING • CHAPTER VI : RIGHTS AND OBLIGATIONS • CHAPTER VII : TIME FRAME • CHAPTER VIII : SANCTIONS • CHAPTER IX : DISPUTE • CHAPTER X : HANDING-OVER • CHAPTER XI : STIPULATION • ANNEX : ORGANIZATION STRUCTURE AND JOB DESCRIPTION

5. Review and synchronize the draft MOU for the joint management in infrastructure

service delivery. Bappeda review and synchronize the draft of MOU with the existing regulations and program, as well as the financial capability for the joint management.


PART VI: INTER-MUNICIPAL COOPERATION 6-9 6. Approve the draft MOU. Based on the recommendation from Bappeda, the Regent

will approve the draft MOU and then submiting it to the local legislative council for further discussion and approval.

7. Review and legalized upon the MOU for the joint management in infrastructure

service delivery. In case the proposal has implications to the community, the approval from the local legislative council should be secured. However, if it complies with the existing regulations, and the MOU only governs implementation based on the existing regulations, this step can be skipped.

8. Signs the MOU for the joint management in infrastructure service delivery. Once the

draft MOU is approved by the Local Legislative Council, it will then be signed by each of the local government heads (Regent/Mayor). The signed MOU will have to be socialized to the related institutions and each local government and its constituents.

9. Formulate a detailed activity for the joint management. The Joint Secretariat will

prepare a detailed activity for the joint management in the infrastructure service delivery.

10. Prepare an implementation schedule. The joint secretariat will prepare an

implementation schedule that will serve as a guideline for each related institution to conduct the activity.

11. Conduct the activity. For the implementation of the activity, each local government

represented by the institutions concerned should conduct the activity in a synergetic way. In this context, the local representatives in the joint secretariat will serve as facilitators.

12. Evaluate and monitor of the activity. The Joint Secretariat will monitor and evaluate

the activity conducted by the institutions concerned, and recommend whether the activity will be sustained or not.



3 CROSS MARKETING

3.1 Definition Cross marketing is both a setup and a process whereby one local government promotes the products, services or the territorial jurisdiction of another local government either as stand-alone offerings or in combination with its own products, services or territorial jurisdiction. The underlying assumption of the setup is either that there is significant differentiation among the offerings of the concerned local governments or that a combination of their offerings provide greater value to potential ‘buyers’ thereby making such offerings more attractive. The setup is meant to encourage cooperation while not hampering healthy competition among the various local governments. In case of similar offerings, local governments are still expected to compete, but their competitive spirit, strategies, and tactics will then be tempered by the knowledge that in other opportunities they will join hands as allies in pursuit of a common objective. The word coopetition, which stands for the combination of cooperation and competition, has been coined to describe this shifting mode of relationship. The success of cross marketing is predicated on the benefits that the seller gets in proportion to the cost incurred not only in terms of money, but also in terms of time and effort. Just compensation will therefore have to be adopted as one of the cornerstones of the arrangement.

3.2 Procedures and Process Flow Chart The process flow chart for cross marketing among concerned local governments is in Figure 6.3. The procedures are summarized as follows: Actor Procedure Joint Secretariat 1. Prepares a cross-marketing proposal format. Local Government Agencies 2. Prepare cross-marketing proposals. Bappeda 3. Compiles and screens cross-marketing proposals.

4. Presents the compilation to a joint meeting of the

executive and legislative branches of government. 5. Presents the compilation to the Joint Secretariat.

Joint Secretariat 6. Screens and approves cross-marketing proposals.

7. Sets the terms and conditions for each cross-marketing activity.

8. Introduces the approved cross-marketing activities

to concerned local governments.



FIGURE 6.3 PROCESS FLOW CHART FOR CROSS MARKETING

JOINT SECRETARIAT BAPPEDA

1. Prepares a cross- marketing proposal format.

LOCAL GOVERNMENTAGENCIES

2. Prepare cross-marketing proposal.

START

3. Compiles and screens cross-marketing proposals.

4. Presents the compilation to executive & legislative branches of government.

5. Presents the compilation to the Joint Secretariat.

6. Screens and approves cross-marketing proposals.

7. Sets the terms and conditions for each cross-marketing activity.

8. Introduces cross- marketing activities to concerned local gov'ts.

10. Monitors, evaluates, and reports on cross- marketing activities.

9. Prepare and distribute cross-marketing materials.

Local Government Agencies 9. Produce and distribute cross-marketing materials. Joint Secretariat 10. Monitors, evaluates, and reports on the progress

of cross-marketing activities.

3.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking cross-marketing activities are as follows: 1. Prepares a cross-marketing proposal format. A cross marketing proposal should at

least describe the product or service to be sold as well as the target market. In addition, it should already give indications as to what the commitments of the proponents are in terms of what it is willing to invest and the compensation or incentive it is willing to grant to successful sellers of such product or service offering. Other pieces of information that the proposal may contain are the expected broader benefits of the offering to the constituencies of the buyer, the seller, as well as those who will participate in marketing it.

2. Prepare cross-marketing proposals. Cross-marketing proposals can be derived from

a variety of sources, including the medium-term development agenda and the annual budget. The offering can take many forms, including development projects, commercial and industrial sites, and the like.


PART VI: INTER-MUNICIPAL COOPERATION 6-12 3. Compiles and screens cross-marketing proposals. This is a preliminary screening of

cross-marketing proposals to identify those that have the potential to be adopted by other local governments for sale to third-party buyers. Those that are clearly eligible are offerings that are unique to the proposing local government, as well as those whose benefits will most likely extend beyond the limits of its territorial jurisdiction.

4. Presents the compilation to a joint meeting of the executive and legislative branches

of government. A joint approval-in-principle from the executive and legislative branches of government is necessary for local governments to enter into specific cooperation agreements with other local governments, especially if these will have repercussions on the local government’s budget and/or financially affect its constituencies. Such an approval, therefore, is to be sought during the presentation.

5. Presents the compilation to the Joint Secretariat. The presentation should

emphasize the merits of each proposal, not only to the proposing local governments but more so to the other cooperating local governments.

6. Screens and approves cross-marketing proposals. The same criteria as in the

preliminary screening may be used here. The implication is that when there are similar offerings from a number of local governments, then such offerings would indicate areas where they will have to compete. This, however, should not be taken as automatic, as other local governments may withdraw their proposals, leaving the one in the strongest position to pursue the opportunity, and just share in the expected benefits. Also the screening process should be viewed as an opportunity to seek for synergies in combining various proposals into one, in which case the procedures that could be applicable are the ones on Cross-Boundary Leveraging, as discussed in the succeeding section.

7. Sets the terms and conditions for each cross-marketing activity. Perhaps, this is the

most crucial step as a lack of agreement on the terms and conditions could stop the whole process. The terms and conditions should spell out in no uncertain terms the commitments of each of the involved parties: what manpower and other resources they will have to commit and how they will be compensated for their efforts. Any foregone benefits shouldered by any involved party should be properly recorded, and future compensation clearly set and agreed upon. If the members of the Joint Secretariat deem it necessary, a legal documentation of the terms and conditions may be prepared.

8. Introduces the approved cross-marketing activities to concerned local governments.

This entails conducting orientation sessions for government agencies and personnel who will be most likely engaged in the cross marketing of proposals approved by the Joint Secretariat.

9. Produce and distribute cross-marketing materials. This is expected to be assumed

by the proponent, with cooperating local governments being furnished with adequate copies of the materials and properly oriented on their use.

10. Monitors, evaluates, and reports on the progress of cross-marketing activities. The

task should primarily focus on how each cooperating local government is doing its part as set forth in the cross-marketing agreement. It is the duty of the Joint Secretariat to call the attention of, as well as motivate and guide, concerned local agencies and personnel. The performance of the task should be focused as well on identifying other opportunities for cross-marketing or cross-boundary leveraging.



4 CROSS-BOUNDARY LEVERAGING

4.1 Definition Cross-boundary leveraging is defined here as the process of combining strengths, assets, activities, and even the pursuit of solutions to problems, which results in synergies for cooperating local governments. Synergy here is taken to mean that each party in the cooperation arrangement derives more benefits than what would accrue if it were to pursue the endeavor alone. While cross-marketing hinges on uniqueness, cross-boundary leveraging can be said to be founded on commonality of resources, opportunities, and even problems. Within the urban agglomeration of Yogyakarta, there exist working examples of the arrangement. These include the solid waste final disposal site in Piyungan and the sewage treatment plant in Sewon. Both facilities would not have been feasible, much less affordable, to build and maintain if their service coverage was limited to the administrative boundaries of just one local government. Another is the plan to put up one entity that will sell bulk water to three local water supply enterprises. Having three water supply enterprises as a market will obviously be more attractive to investors compared to just having one, whether those investors are the local governments themselves or the private sector. Other opportunities exist in the mere exchange of best practices in local governance as well as in joint studies and implementation of measures for institutional strengthening, human resources development, and systems design and installation. There is no reason, for example, why local governments cannot organize a common computerized data storage and processing center, instead of the present setup wherein each local government maintains its own facility with its attendant redundancy in the costs of manpower, hardware and software, and logistical support. As can be seen from the procedures, the process is very much similar to those for cross marketing. Indeed, any occasion wherein cross marketing is discussed should be considered as an opportunity for exploring possibilities for cross-boundary leveraging as well, and vice versa.

4.2 Procedures and Process Flow Chart The process flow chart for cross-boundary leveraging among local governments is in Figure 6.4. The procedures are summarized as follows: Actor Procedure Joint Secretariat 1. Prepares a format for cross-boundary-leveraging

proposal. Proponent 2. Prepares cross-boundary-leveraging proposal.



FIGURE 6.4 PROCESS FLOW CHART FOR CROSS-BOUNDARY LEVERAGING

LOCAL GOVERNMENT HEAD LOCAL LEGISLATIVE COUNCIL JOINT SECRETARIAT BAPPEDA PROPONENT

2. Prepares cross-boundary- leveraging proposal.

1. Prepares a format for cross- boundary-leveraging proposal.

START

3. Compiles and screens proposals.

4. Presents compilation to a joint meeting of executive and legislative branches.

5. Presents the compilation to the Joint Secretariat.

6. Screens and approves the proposals.

7. Sets terms and conditions for each project/activity.

8. Prepares and presents a draft memorandum of understanding.

9. Reviews and approves the draft memorandum of understanding.

10. Signs memorandum of understanding on behalf of local government.

11. Undertakes steps toward project/activity implementation.


PART VI: INTER-MUNICIPAL COOPERATION 6-15 Bappeda 3. Compiles and screens proposals.

4. Presents the compilation to a joint meeting of the

executive and legislative branches of government. 5. Presents the compilation to the Joint Secretariat. Joint Secretariat 6. Screens and approves proposals.

7. Sets the terms and conditions for each cross-boundary-leveraging project/activity.

8. Prepares and presents a draft memorandum of

understanding among cooperating local governments.

Local Legislative Council 9. Reviews and approves the draft memorandum of

understanding. Local Government Head 10. Signs the memorandum of understanding on

behalf of the local government. Joint Secretariat 11. Undertakes the necessary preparatory seps

toward project/activity implementation.

4.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking cross-boundary-leveraging activities are as follows: 1. Prepares a format for cross-boundary-leveraging proposal. The proposal should

provide essential data about the cross-boundary-leveraging project or activity, including its objectives and targets, location, scope, the required investment, the expected benefits, the sharing scheme among participating local governments of both the costs and the benefits, and similar information. The extent of third-party involvement, if necessary, should also be indicated.

2. Prepares cross-marketing proposals. The proponent here can be a local

government agency, a private person or a business entity. 3. Compiles and screens proposals. This is a preliminary screening of proposals to

identify those that increase the value of a project or activity under a cooperation arrangement among local governments over what it would be able to deliver if pursued by or for just one local government. Furthermore, such increase in value should be equitably, if not equally, divisible among the participating local governments and/or their constituencies.

4. Presents the compilation to a joint meeting of the executive and legislative branches

of government. Proposals that pass through the preliminary screening are presented to a joint meeting of the executive and legislative branches of each participating local government. Screening may still be done at this point based on the reactions of and the consensus arrived at by the meeting participants. Thus, the compilation can still be pruned at this point.


PART VI: INTER-MUNICIPAL COOPERATION 6-16 5. Presents the compilation to the Joint Secretariat. The presentation should

emphasize the merits of each proposal, particularly how much added value it is expected to deliver to each participating local government.

6. Screens and approves proposals. The same criteria as in the preliminary screening

are used here. The difference of course is that the deliberation and the subsequent decision will already have to take into account the views, opinions, and interests of other local governments that are represented in the Joint Secretariat.

7. Sets the terms and conditions for each project/activity. Perhaps, this is the most

crucial step as a lack of agreement on the terms and conditions could stop the whole process. The terms and conditions should spell out in no uncertain terms the commitments of each of the involved parties: what manpower and other resources they will have to commit and how they will be compensated for their efforts. Any foregone benefits shouldered by any involved party should be properly recorded, and future compensation clearly set and agreed upon. Also, how the project/activity will be implemented and how post-implementation management will be provided should be clearly established. Post-implementation management may, for example, prescribe that the business enterprise resulting from the project or activity be operated by the private sector, with the local governments participating more at the policy-setting level. If possible, performance benchmarks should also be set at this early stage.

8. Prepares and presents a draft memorandum of understanding. The draft

memorandum of understanding is basically a formal documentation of the project/activity concept, including the terms and conditions that have been set by the Joint Secretariat. If the project/activity is internal to local governments, such as those concerning human resources development or institutional strengthening, the target audience of the presentation may be limited to members of the executive and legislative branches of the local government, including the Mayor/Regent and the Chairman of the Local Legislative Council. If it will have a significant effect on the lives of community members, however, an open public hearing will have to be conducted. The memorandum of understanding may be revised on the basis of the results of the presentation or public hearing.

9. Reviews and approves the draft memorandum of understanding. The review is

basically to let the members of the council know what the local government is committing to, so that this can be provided for in the preparation of the annual budget.

10. Signs the memorandum of understanding on behalf of the local government. This is

just to formalize the local government’s commitment toward the implementation of the cross-boundary-leveraging project or activity and thus signifies its readiness to allocate the required resources.

11. Undertakes the necessary preparatory steps toward project/activity implementation.

Preparatory steps are those that are required for a smooth transition toward the next process or processes. If the project or activity is internal to the participating local governments, then the succeeding processes would be similar to those already described in Part V: Urban Management, particularly those on project implementation, operation and maintenance, and monitoring and evaluation. If community or private-sector participation is required, however, then the applicable



processes are those that are presented in Part VII: Community and Private-Sector Participation.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-1

PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION

7

Community and private-sector participation can be viewed from both political and economic perspectives. Politically, it forms part and parcel of the continuing process of decentralization, which compels government decision-making processes, not only to be transparent and accountable, but accessible as well to the civil society. Community and private-sector participation is therefore a must and in fact a guaranteed right of the governed. It also makes a lot of economic sense, now more than ever, when local governments are expected to operate as autonomous units with principal responsibility over the welfare of citizens. The resources of local governments, even assuming higher-level government subsidies, are just inadequate to meet the needs and aspirations of their respective constituencies. Local governments will thus have to rely more and more on local wherewithal, especially the contributions of the community and the private sector, to spur and sustain development. The processes that follow are meant to encourage and promote community and private-sector participation without sacrificing the objectives and principles of social justice and equity while rewarding individual initiative, creativity, and innovation.



1 PRIVATE SECTOR-INITIATED PRIVATE-SECTOR PARTICIPATION

1.1 Definition This mode of participation occurs when the private sector initiates the identification of investment opportunities in, among others, the provision of essential public services, the performance of government functions, or the exploitation of government-owned or -controlled assets, including franchises. Under this type of cooperation, the prospective private-sector investor has the burden of establishing prima facie indications that the undertaking being proposed is commercially viable and mutually beneficial to both the investor and the government and its constituencies. In return, to some extent the prospective investor is given preferential treatment, including the privilege of exclusivity up to a certain stage in the investment preparation process.

1.2 Process and Procedures The process flow chart for private sector-initiated private-sector participation is in Figure 7.1. The procedures are summarized as follows: Actor Procedure Bappeda 1. Formulates and publicizes criteria for private-

sector initiatives. Proponent 2. Submits Statement of Interest (SOI). Bappeda 3. Receives and evaluates the SOI.

4. Issues approval in principle. Proponent 5. Conducts and submits pre-feasibility study. Bappeda 6. Forms an inter-agency evaluation committee. Inter-Agency Evaluation Committee 7. Evaluates the pre-feasibility study.

8. Designates local government counterpart agency.

9. Convenes public hearing.

10. Draws broad terms and conditions of contract. Proponent 11. Conducts and submits feasibility study. Inter-Agency Evaluation Committee 12. Reviews and approves the feasibility study.

13. Issues letter of feasibility-study approval.



FIGURE 7.1 PROCESS FLOW CHART FOR PRIVATE SECTOR-INITIATED PRIVATE-SECTOR PARTICIPATION

MAYOR/REGENT LOCAL LEGISLATIVE COUNCIL

START

17. Signs the contract on behalf of local government. 16. Reviews and endorses the contract.

INTER-AGENCY EVALUATIONCOMMITTEE

2. Submits Statement of Interest (SOI).1. Publicizes evaluation criteria for private-sector initiatives.7. Evaluates the pre-feasibility study.

6. Forms inter-agency evaluation committee.

BAPPEDA PROPONENT

8. Designates government counterpart agency. 3. Receives and evaluates the SOI.


10. Draws broad terms and conditions of contract. 11. Conducts and submits feasibility

study.

12. Reviews and approves the feasibility study.

4. Issues approval in principle.

5. Conducts pre-feasibility study.

13. Issues letter of feasibility-study approval.

14. Draws and submits draft contract.

15. Reviews and endorses the contract.

18. Finalizes project documentation.

19. Takes preparatory steps toward implementation.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-4 Proponent 14. Draws and submits draft contract. Inter-Agency Evaluation Committee 15. Reviews and endorses the contract. Local Legislative Council 16. Reviews and endorses the contract. Mayor/Regent 17. Signs the contract on behalf of the local

government. Proponent 18. Finalizes project documentation.

19. Takes preparatory steps toward project implementation.


The explanatory notes and guidelines for undertaking private sector-initiated private-sector participation are as follows: 1. Formulates and publicizes criteria for private-sector initiatives. The criteria could

define the preferred areas of investment for the private sector, particularly concerning the provision of essential public services. Also, the benchmarks for financial, technical, institutional, social, and environmental performance may be indicated. In any case, the local government should endeavor to make the criteria known to the public. The information campaign on the criteria may, for example, be undertaken as part of the overall promotional campaign on the development agenda.

2. Submits Statement of Interest (SOI). The basic aim of the SOI is to introduce the

prospective investor to the local government, with emphasis on its institutional and financial capabilities in undertaking similar projects as the one being proposed. At the same time, it should give adequate description of the project or activity the investor intends to go into, its benefits to both the local government administration and its constituencies. Indicative scope of the project, its investment cost, and expected financial and other benefits may also be included.

3. Receives and evaluates the SOI. At this point, the SOI must be treated as a

confidential document, with the information it contains proprietary to the proponent. The proposal can be evaluated against the local government’s development vision, plans, and strategies.

4. Issues approval in principle. Conformity with the existing development thrust of the

local government should be the main reason for the issuance of the approval in principle. The approval represents both the proponent’s proprietary right over the idea contained in the SOI and the local government’s commitment not to entertain any similar proposal.

5. Conducts and submits pre-feasibility study. The pre-feasibility study should focus

more on technical and financial feasibility analyses. Indications of institutional arrangements for implementation and operation and maintenance as well as preliminary assessment of environmental impact, however, should also be included.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-5 6. Forms an inter-agency evaluation committee. To be chaired by the Head of

Bappeda, the committee should include members from local government agencies responsible for planning, finance, program preparation, legal affairs, government administration, and the department directly responsible for the project being proposed, such as, for example, the Department of Public Works for infrastructure projects or the Department of Tourism for tourism-related projects. It can be formed even before the proponent submits the pre-feasibility study document.

7. Evaluates the pre-feasibility study. The evaluation of pre-feasibility study should

then be based on the application of the previously publicized criteria. The basic guideline here is that no new or changed criteria can be applied unless they have been well publicized before the receipt of the SOI.

8. Designates local government counterpart agency. The main function of the

counterpart agency is to serve as the local government’s liaison with the proponent/prospective investor. The agency to be selected should be the one that will most likely implement the proposed project/activity had it been initiated by the local government itself. The counterpart agency should help in facilitating the entire process by providing the proponent with all the available technical data as well technical guidance and advice. Bappeda, for its part, shall remain the source of information and guidance on overall development policies, plans, and programs.

9. Convenes public hearing. The public hearing is the first occasion wherein the

proposal is exposed to the public. Detailed procedures on how to conduct a public hearing are provided in Part V: Urban Management.

10. Draws broad terms and conditions of contract. The results of the public hearing are

then translated into the broad terms and conditions of the eventual contract between the local government and the proponent. Those that will have a bearing on the feasibility of the project, such as rates of return and/or tariff rates, are especially highlighted. Part of the terms and conditions should define the succeeding relationship between the local government and the proponent, including the mode of privatization or private-sector participation that will be set up. For example, a deadline for the exclusivity granted to the proponent may be set, after which, if the project is not realized, the local government will be free to offer it to other investors subject to agreed-upon forms of compensation to the proponent.

11. Conducts and submits feasibility study. A detailed feasibility study is then prepared,

covering technical, financial, institutional, environmental, and other relevant aspects. For the proponent, the results of the feasibility study when compared with the terms and conditions of contract outlined above may serve as the basis for a ‘go’ or ‘no go’ decision’. On the basis of the results of feasibility study, some of the terms and conditions may also be renegotiated, especially if sticking to such terms and conditions would render the project unfeasible.

12. Reviews and approves the feasibility study. The review here would focus more

particularly on the conformity of the results of the study with the preset terms and conditions. Additionally, revisions to such terms and conditions will also have to be thoroughly deliberated upon. At this point, the local government will also have to decide whether to proceed with or stop the project or to offer it to other prospective investors, subject to the fulfillment of the preset terms and conditions. Further negotiations with the proponent may also be undertaken throughout the review process.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-6 13. Issues letter of feasibility-study approval. If the decision in the preceding step is to

approve the feasibility study, including the proposed revisions to the terms and conditions of contract, Bappeda, on behalf of the Inter-Agency Committee, formalizes such approval in an official letter to the proponent. At this point, the local government will also have to decide whether to proceed with or stop the project or to offer it to other prospective investors, subject to the fulfillment of the preset terms and conditions.

14. Draws and submits draft contract. The contract is merely the translation of the

agreed-upon terms and conditions into legal language and format. 15. Reviews and endorses the contract. Unless there are major discrepancies between

the agreed-upon terms and conditions, on the one hand, and the draft contract, on the other, the review should merely be a formality.

16. Reviews and endorses the contract. As in the preceding step, this could merely be a

formality. This may turn out to be crucial at a later stage, however, especially when the local government will have to allocate resources for the realization of the project.

17. Signs the contract on behalf of the local government. The Mayor/Regent, as the

local government’s chief executive, then signs the contract. 18. Finalizes project documentation. The finalization includes the notarization of the

contract, the registration of the project with the investment coordinating authority, and the application for and receipt of the necessary permits and licenses, such as location, land allocation, building construction, and business permits, the relevant processes for which are described in the Part IV: Government Service Delivery.

19. Takes preparatory steps toward project implementation. The most usual next step is

the preparation of detailed engineering design. Land acquisition, procurement, and hiring of personnel, to some extent, may also be undertaken at this point. The procedures for project implementation, operation and maintenance, and monitoring and evaluation, in so far as they are applicable to the project, are described in Part V: Urban Management.

The entire process can be made shorter, depending on the resourcefulness of the proponent. A clear shortcut is for the prospective investor to submit, at the first instance, a pre-feasibility study, instead of just a statement of interest, thereby bypassing the first five steps of the process. The submission of a feasibility study will certainly cut the process even much shorter. This, however, may not be a realistic expectation in view of the cost involved.



2 GOVERNMENT-INITIATED PRIVATE-SECTOR PARTICIPATION

2.1 Definition Under this model of private-sector participation, the government identifies opportunities for private-sector investment in the provision of essential public services, the performance of government functions, and the exploitation of government assets. The initial burden of proof as to the viability of the investment project is on the government or its proposing agency. Qualified investors are treated equally; no preferential treatment is extended to any one of them. The final prospective investor is selected through an open tender based on clear, predefined criteria that are known to and understood by at least all the prospective investors, if not by the public at large..

2.2 Process and Procedures The process flow chart for government-initiated private-sector participation is in Figure 7.2. The procedures are summarized as follows: Actor Procedure Proponent 1. Identifies and submits suitable project concept. Bappeda 2. Screens and selects suitable project concepts.

3. Forms an inter-agency evaluation committee. Proponent 4. Conducts pre-feasibility study.


6. Formulates and submits for review the general terms and conditions of contract.

Inter-Agency Evaluation Committee 7. Reviews and approves the general terms and

conditions of contract.

8. Prepares and issues project digest/prospectus and invitation for pre-qualification.

Prospective Investors 9. Submit Statements of Interest (SOI). Inter-Agency Evaluation Committee 10. Announces the short list and issues request for

proposal. Short-Listed Investors 11. Submit proposals.



FIGURE 7.2 PROCESS FLOW CHART FOR GOVERNMENT-INITIATED PRIVATE-SECTOR PARTICIPATION

PROSPECTIVE AND SHORT LISTEDINVESTORS

INTER-AGENCY EVALUATIONCOMMITTEE BAPPEDA

START

2. Screens and selects suitable project concepts.

3. Forms an inter-agency evaluation committee.

PROPONENT

1. Identifies and submits suitable project concept.

9. Submit statement of interest.

7. Reviews and approves the general terms and conditions of contract.

4. Conducts pre-feasibility study.

5. Convenes a public hearing.

6. Formulates general terms and conditions of contract.

8. Issues project digest/prospectus and invitation for pre-qualification.

Part A

10. Announces short list and issues request for proposal.

12. Evaluates proposals.11. Submit proposal

To B



MAYOR/REGENT LOCAL LEGISLATIVE COUNCIL INTER-AGENCY EVALUATIONCOMMITTEE

From A

13. Announces the winning proposal.

14. Signs a memorandum of understanding with the selected investor.

SELECTED INVESTOR

15. Conducts and submits detailed feasibility study.

20. Signs the contract with the selected investor. 19. Reviews and endorses the contract.

17. Prepares and submits a draft contract

Part B

16. Reviews and approves the feasibility study.

18. Reviews and endorses the draft contract.

21. Finalizes project documentation.



PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-10 Inter-Agency Evaluation Committee 12. Evaluates the proposal.

13. Announces the winning proposal. 14. Signs a memorandum of understanding with the

selected investor. Selected Investor 15. Conducts and submits detailed feasibility study. Inter-Agency Evaluation Committee 16. Reviews and approves the feasibility study. Selected Investor 17. Prepares and submits a draft contract. Inter-Agency Evaluation Committee 18. Reviews and endorses the draft contract. Local Legislative Council 19. Reviews and endorses the draft contract. Mayor/Regent 20. Signs the contract with the selected investor. Selected Investor 21. Finalizes project documentation.


2.3 Explanatory Notes and Guidelines The explanatory notes and guidelines for undertaking government-initiated private-sector participation are as follows: 1. Identifies and submits suitable project concept. The proponent can be any local

government agency, including those at the district and village levels, as well as government-owned local enterprises. The project concept should provide a description of the project, its scope and expected benefits; the investment cost; and the extent of, and rationale for, private-sector participation, including the expected benefits to the local government and its constituencies. If possible, the preferred mode of public-private partnership may also be included. Master plans, existing development programs, and the development agenda resulting from the processes in Part V could serve as references for developing a suitable project-concept proposal.

2. Screens and selects suitable project concepts. For the sake of consistency, the

same criteria used in the screening of private sector-initiated project proposals are used here. In addition, Bappeda should be able to assess the marketability of the proposed project to the private sector both in terms of the possible return on investment and the experience and capability of the private sector to handle the project.

3. Forms an inter-agency evaluation committee. To be chaired by the Head of

Bappeda, the committee should include members from local government agencies responsible for planning, finance, program preparation, legal affairs, government administration, and the proponent of the project. Also, since there is no proprietary



information involved in the process, representatives of community-interest groups, especially those that will be most affected by the project, as well as key members of the Local Legislative Council should be included as members. In addition, the proponent is designated as the counterpart local government agency responsible for providing data to all interested investors.

4. Conducts pre-feasibility study. The pre-feasibility study should focus more on

technical and financial feasibility analyses. Indications of institutional arrangements for implementation and operation and maintenance as well as preliminary assessment of environmental impact, however, should also be included. The results of the pre-feasibility study are then used as basis for deciding whether to proceed to the next step or not.

5. Convenes public hearing. The main purpose of the public hearing is to gauge public

support for the proposed private-sector participation and to elicit specific needs and aspirations that should be responded to. Detailed procedures for conducting a public hearing are included in Part V: Urban Management.

6. Formulates and submits for review the general terms and conditions of contract.

The results of the public hearing are then translated into the broad terms and conditions of the eventual contract between the local government and the private investor. Those that will have a bearing on the feasibility of the project, such as rates of return and/or tariff rates, are especially highlighted. Part of the terms and conditions should define the succeeding relationship between the local government and the investor, including the mode of privatization or private-sector participation that will be set up.

7. Reviews and approves the general terms and conditions of contract. The review

should ensure that public opinion as expressed during the public hearing is properly taken into account.

8. Prepares and issues project digest/prospectus and invitation for pre-qualification. A

project digest or prospectus is a summary of the project concept, including some highlights of the results of the pre-feasibility study, which is meant to elicit the interest of prospective investors. Criteria for the selection of prospective investors as well as the succeeding steps that will be followed leading to project implementation should also be outlined. The criteria may include, among others, financial and institutional capacities as well as track record in public-private partnership in general and in implementing projects that are similar to the one being offered in particular. A public presentation of investment opportunities may be held for this purpose, complemented by announcements in mass media.

9. Submit Statements of Interest. The SOI should emphasize the investor’s conformity

with the criteria as announced by the evaluation committee. On the part of the local government, the number of investors submitting an SOI as well as the quality of these investors may already indicate the implementability of the privatization scheme. If there are only very few interested investors and their financial and institutional capacities are questionable, then the local government may decide put an end to the whole process at this point.

10. Announces the short list and issues request for proposal. SOIs are then evaluated

and, on the basis of the criteria, prospective investors are ranked. The short list may be composed of the three to five highest-ranked investors. The announcement of



the short list is then accompanied by a request for proposal, which should include detailed terms of reference, a proposal format, and the criteria for proposal evaluation. The criteria for proposal evaluation may be derived from the terms and conditions of contract that have already been formulated. The time and place for submission as well as the time needed for the evaluation and the date for announcing the winner should also be clearly indicated. Alternatively, if the local government decides not to pursue the project, it should properly inform all those who have submitted an SOI.

11. Submit proposal. On the basis of the invitation and the terms of reference, short-

listed investors then submit proposals. 12. Evaluates the proposal. On the basis of the criteria, the proposals are evaluated and

ranked as to their responsiveness. Depending on the number and quality of proposals received, the local government may again have to make a decision to proceed or not with the project.

13. Announces the winning proposal. On the basis of the evaluation, the winning

proposal is then announced and the submitting investor invited for preliminary meetings with the local government, as represented by the Inter-Agency Evaluation Committee. During these meetings, clarification of certain portions of the proposal as well as revisions may be made in those portions that may not totally conform with the terms of reference and/or the terms and conditions of contract that have already been established.

14. Signs a memorandum of understanding with the selected investor. The core of

agreement between the local government and the selected investor is then reflected in a memorandum of understanding.

15. Conducts and submits detailed feasibility study. A detailed feasibility study is then

prepared, covering technical, financial, institutional, environmental, and other relevant aspects. For both the selected investor and the local government, the results of the feasibility study when compared with the terms and conditions of contract may serve as the basis for a ‘go’ or ‘no go’ decision’. On the basis of the results of feasibility study, some of the terms and conditions of contract may also be renegotiated, especially if sticking to such terms and conditions would render the project unfeasible.

16. Reviews and approves the feasibility study. The review here would focus more

particularly on the conformity of the results of the study with the preset terms and conditions. Additionally, revisions to such terms and conditions will also have to be thoroughly deliberated upon. At this point, the local government may also have to decide whether to proceed with or stop the project or to offer it to other prospective investors, subject to the fulfillment of the preset terms and conditions. Further negotiations with the proponent may also be undertaken throughout the review process.

17. Prepares and submits a draft contract. The contract is merely the translation of the

agreed-upon terms and conditions into legal language and format. 18. Reviews and endorses the draft contract. Unless there are major discrepancies

between the agreed-upon terms and conditions, on the one hand, and the draft contract, on the other, the review should merely be a formality.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-13 19. Reviews and endorses the draft contract. As in the preceding step, this could merely

be a formality. This may turn out to be crucial at a later stage, however, especially when the local government will have to allocate resources to the realization of the project.

20. Signs the contract with the selected investor. The Mayor/Regent, as the

municipality’s chief executive, then signs the contract on behalf of the local government.

21. Finalizes project documentation. The finalization includes the notarization of the

contract, the registration of the project with the investment coordinating authority, and the application for and receipt of the necessary permits and licenses, such as location, land allocation, building construction, and business permits, the relevant processes for which are described in Part IV: Government Service Delivery.

22. Takes preparatory steps toward implementation. The most usual next step is the

preparation of detailed engineering design. Land acquisition, procurement, and hiring of personnel, to some extent, may also be undertaken at this point. The procedures for project implementation, operation and maintenance, and monitoring and evaluation, in so far as they are applicable to the project, are described in Part V: Urban Management.



3 COMMUNITY- INITIATED COMMUNITY PARTICIPATION

3.1 Definition The community-initiated community participation is a development activity planned, implemented and evaluated by the community. The activity involves the government to synchronize such activity with other programs, to finance or provide funds. The development activity is planned to be operated in a local/village scale. Under the co-operation, the community will be responsible to the proposed program feasibility. As an additional comprehension, the importance of community development program through the government institution or non-government organization is as a preparatory process before the implementation of the activity. Several endorsements from the government institution or non-government are meant to among others develop a public arrangement, to improve the community awareness to be involved in the development process, and initiatives to be part of the civil society, and to improve the community awareness to the project benefits. The endorsements are provided by means of gathering several information from community, public relation, as well as the supporting clearness. The process of providing any endorsements is undertaken by the government institution or non-government one in the educational scale, persuasion and advocate at the community level.

3.2 Procedures and Process Flow Chart The process diagram for the community-initiated community participation is presented in Figure 7.3. The procedure is summed up as follows:

Actor Procedure Community 1. Identify any problems.

2. Formulate proposal.

Bappeda 3. Explain the standard proposal format.

Related Institution 4. Provide technical assistance in proposal formulation.

Community 5. Accomplish the project proposal.

Bappeda 6. Overlook at the proposal.

Bappeda and Related Agency

7. Conduct a joint discussion in the coordination meeting.

Bappeda 8. Provide recommendation letter in the form of

supporting letter.



FIGURE 7.3 DIAGRAM FLOW OF COMMUNITY- INITIATED COMMUNITY PARTICIPATION

COMMUNITY BAPPEDA RELATED INSTITUTION

4. Provide technical assistance in proposal formulation.

DONOR INSTITUTION

2. Formulate Proposal. 3. Explain the standard format of proposal formulation.

6. Overlook at proposal.

7. Conduct a joint discussion in the coordinating meeting.

9. Accept the proposal again and the supporting letter from government

START

1. Identify any problems.

5. Accomplish the project proposal.

8. Provide recommendation in the form of supporting letter.

12. Prepare the initial step for the project implementation.

13. Provide technical assistance of project implementation.

11. Sign the work contract between the community and donor institution.

10. Overlook at and approve the proposal.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-16 Community 9. Accept the proposal legalized by the government

and completed with the supporting letter.

Donor Institution 10. Accept, examine and approve the proposal.

11. Sign the work contract work between the community and donor institution.

Community 12. Prepare the initial step for the project

implementation.

Related Agency 13. Provide technical assistance of project implementation..


The following is a more detailed description of the process above: 1. Identify any problems. The community group will identify any problems in a

discussion among the citizens. Prerequisite in conducting the citizen’s discussion should be attended by the existing components of community such as RT/RW, LKMD, village officials, informal leaders. In this step, we must take into account the capability of the community to identify the factual problem in their community. The result of identification is a definite recommendation/ conclusion to the existing problem or the strategy to the problem solution.

2. Formulate proposal. The community will organize a small team to draw up a

proposal accepted by the village officials. During the proposal formulation, the small team will facilitate the dialogues among the community as well as between the community and government to identify problems and alternative solutions based on their needs and priorities.

3. Explain the standard format of proposal formulation. The standard format is meant

to provide a clear standard and to make easier in appraisal and evaluation conducted by the Bappeda. The standard format and appraisal should be based on the application and the appraisal previously socialized. The proposal format covers: a. Project information letter addressed to the Head of Bappeda b. The project proposal itemization covering: location, problem formulation,

objectives, beneficiaries, activities, work plan ,staff. Budget, Supporting side, and project executor.

c. Photo of activity object d. Schedule of project implementation e. Detail of project cost f. Technical Portrait.

The Project Proposal Identification is completed with the criteria overall the aspects. The criteria are established by Bappeda with the related institution as a part of the proposal standard.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-17 4. Provide a technical assistance in proposal formulation. The technical assistance

means to provide a technical guideline composing a detail design of project proposal, material and human resource development to achieve an optimum implementation.

5. Complete the project proposal. The activity, conducted by the community, means to complete the project proposal to be in line with the standard format, technical and financial considerations as well as an optimum implementation plan composed of material and human resource management. After exceeding the phase, the project is completed.

6. Examine the proposal. Bappeda will examine the proposal in order to overlook at the proposal and any coordinative activities. The related institution will examine the proposal substance under the technical consideration of each subject.

7. Conduct a joint discussion in a coordinating meeting. The discussion between Bappeda and the related institution means to synchronize the program with the government plan. The discussion is a forum for final examination to the proposal document to be completed and prioritized to requirements. The coordinating meeting will also mean to discuss an anticipative action through coordination if the community means to carry out a work relation with other side.

8. Provide a recommendation stated in a supporting letter. The recommendation from Bappeda stated in a supporting letter is a government response telling that the project plan existence has been acknowledge, a coordination has been implemented as well as a recommendation from other side to participate in the project implementation. The government recommendation should be issued three weeks at maximum, after the proposal is completed by the community and submitted for the second time to Bappeda.

9. Accept the proposal again legalized by the government and completed with the supporting letter. Soon after the government enforcing the proposal through the supporting letter, the community has an opportunity to access with the donor institution by means of sending the project proposal and the supporting letter from the government. It is possible that the community will mobilize the participation from any sides.

10. Accept, examine, and approve the proposal. The clear criteria of the technical feasibility and the project benefit implication should in transparence socialized overall the sides that will utilize the cooperation. The donor institution, both Indonesian institution and foreign ones will independently make a direct contact with the community group. The government should facilitate and support a realization of the cooperation.

11. Sign a cooperation contract between the community and donor institution. The signing is a formalization of cooperation relation between the donor institution with the community. The contract includes the right and obligation of each side, cooperation requirements as well as an action under the unfulfilment of the requirement. The contract will be an important document legally binding for the future actions. The selected donor institution should orient on the community participation improvement not only sustaining the project results but much stressing on the work process.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-18 12. Prepare the initial step for the project implementation. At the phase, a detailed

engineering design (DED) is expected to be accomplished. Then, a socialization of project existence at the community should be put into action, an area consolidation if necessary, and staff recruitment. The establishment of project implementation phases and O&M planning as well as controlling and evaluation should also be prepared.

13. Provide a technical assistance during the project implementation. The related institution should provide assistance to the community in controlling the project implementation so it will be adjusted to the technical regulation and any requirements dealing with the maintenance and operation. Such assistance should be continually provided through a field survey. If several problems occurred during the implementation, the related institution should provide several inputs to solve such problems. The implementation evaluation is not only stressed on the technical aspects but included the community preparation process and the project implementation.



4 GOVERNMENT-INITIATED COMMUNITY PARTICIPATION

4.1 Definition The government initiates the development program to improve the community/community group participation in the facilities/infrastructure development or other public facilities located in the area. It is expected that the local community participation in the development will evoke or improve the community awareness to maintain the next built- facilities.

The community under the context deals with community group or community-based group/association at RT/RW, community-based organization or the non-government organization operated at the area of work or program implementation.

4.2 Process and Procedures The process diagram for the community participation initiated by the government is presented in Figure 7.4. The procedure is briefly discussed as follows:

Actor Procedure

Bappeda 1. Establish the program and publish working

criteria as well as several steps of community participation.

Community-based Group(KSM)/Non-Government Organization (Ornop)

2. Submit a letter stating their interest accepted by the territorial government (RT/RW/Dusun).

Bappeda

3. Accept and evaluate the application letter of

KSM/Ornop. 4. Provide an approval in principle.

KSM/Ornop

5. Submit the work-plan of budget allocation to Bappeda.

Bappeda 6. Accept the work plan and conduct the

coordinating meeting with related institution. 7. Assign the related institution to give guidance

and supervision.

Related Institution 8. Accept the mandate from Bappeda to be a facilitator for the community activity.

KSM/Ornop 9. Adjust the work plan with the approved

activity.



FIGURE 7.4 PROCESS FLOW CHART FOR COMMUNITY PARTICIPATION INITIATED BY THE GOVERNMENT

BAPPEDA RELATED INSTITUTION BANK /TREASURER KSM/ORNOP

3. Accept and evaluate the application letter of KSM/Ornop

7. Assign the related institution to give guidance and supervision .

START

1. Establish the program and publish working criteria as well as several steps of community participation

4. Provide an approval in principle.

8. Accept a mandate from Bappeda to be a facilitator for the community activity

10. Examine and provide approval to the workplan and establis a new contract

13. Examine the agreement letter and contract and provide approval for clearance toOrnop/KSM

14. Implement the work

12. Submit the agreement letter and the working contract to the bank

6. Accept the workplan and conduct the coordinating meeting with related institution

11. Sign the working contract.

17. Monitor and evaluate the project implementation and the outputs

18. Prepare the projecty documentation.

2. Submit a letter starting their interest accepted by the territorial governement (RT/RW/ Dusun)

5. Submit the work-plan and budget allocation to Bappeda.

15. Provide a guidance and technical supervision to KSM/Ornop 16. Prepare a progress report.

9. Adjust the work plan with the agreed activity establishment



Bappeda 10. Examine and approve the work plan as well

as establish a working contract. 11. Sign the working contract

KSM/Ornop 12. Submit the working contract to the

Bank/appointed Financial Institution.

Bank/treasurer 13. Examine the agreement letter and contract

and approve a clearance/payment to Ornop/KSM

KSM/Ornop 14. Implement the work.

Facilitating Unit 15. Provide technical supervision to Ornop/KSM.

KSM/Ornop 16. Prepare a progress report.

Bappeda

17. Monitor and evaluate the project implementation and the outputs.

18. Prepare the project documentation.


The following is a more detailed description of the community participation initiated by the government:

1. Establish the program and publish the working criteria as well as several steps of

community participation. An establishment and a program initiative do not always come from Bappeda or the local government, but also from the Central Government or donor institution whose program is implemented through the local Government coordination. The criteria deals with anyone could be participated, and the establishment of any kind of activities that could be implemented by the community relating to the public service activities in particular as well as the benchmarks of financial, technical, institutional, social and environmental performance. The local Government, on that account, should establish any criteria acknowledged by the public.

2. Submit a letter stating their interest acc by the territorial government (RT/RW). The

local KSM or Ornop (non-government organization) interested to participate in the activity/program should apply a letter to Bappeda. To ensure the Bappeda that they come from a local non-government organization, the letter should be signed by RT/RW (neighborhood association) to explain that the KSM or Ornop reside in the location.

3. Accept and evaluate the application letter. At the phase, Bappeda will accept the

application and evaluate it to find its reliability, including a field survey to find the KSM/Ornop domicile.


PART VII: COMMUNITY AND PRIVATE-SECTOR PARTICIPATION 7-22 4. Provide an approval in principle. Bappeda will inspect the application and

recommends the existence of the interested KSM/Ornop and its appropriateness with the activity that will be operated. The approval will be stated in an agreement letter addressed to the KSM and the carbon copy to the RT/RW. Bappeda will then provide program description for the KSM/ Ornop.

5. Submit the next work plan of budget allocation to the Bappeda. KSM/Ornop will

submit the established work plan and then the budget allocation that is established based on the program description provided by Bappeda. The work plan covers a schedule and job description as well as allocation and specification of the required staff.

6. Accept the work plan and conduct a coordination meeting with the related institution.

Bappeda will accept the work plan established by KSM/Ornop and then conduct a coordinating meeting to discuss the proposed work plan.

7. Assign the related institution to give guidance and supervision. The coordinating

meeting will approve among others the selected institution relevant with the activity to provide guidance and supervision.

8. Accept the mandate from Bappeda to be a facilitator for the community activity. The

assigned institution (facilitator) will accept the mandate from Bappeda to implement the task. The institution will formulate a work plan. The work plan will be discussed with the representatives of KSM/Ornop.

9. Adjust the work plan with the approved activity. The work plan that has been

prepared by KSM/Ornop should be revised based on the inputs provided by the assigned institution. The adjustment of the work plan is expected to be more applicable. Soon after adjusted by KSM/Ornop, the work plan will be submitted to Bappeda.

10. Examine and approve the work plan and establish a working contract. Bappeda will

examine the work-plan. The subjects that should be examined are: the number of budget and feasible values at each budget items, work duration, outputs as well as the technical design. All the items will be included in the contract that will be signed by Bappeda and KSM/Ornop.

11. Sign the contract. The agreement is provided after evaluating that the work plan is

feasible to be implemented. If it is not feasible, a consultation among the Bappeda, assigned institution and representatives of KSM/Ornop should be undertaken. In addition, the agreement will be indicated by a contract signing between Bappeda and KSM/Ornop. The contract will itemize the specification of activities as well as payment term and place where to pay for (Bank appointed by the State Treasure).

12. Submit the agreement on work plan and the contract to the Bank/appointed

Financial Institution. Based on the agreement letter on the work plan, KSM/Ornop will proposed a financial clearance to the Bank/appointed Financial Institution where the program/activity finance could be obtained.

13. Examine the agreement letter and contract and approve a clearance to Ornop/KSM.

The Bank/appointed Financial Institution will examine overall requirements submitted by KSM/Ornop. If the requirements are completed, the bank will provide approval to pay under the term stated in the contract. The payment could be done



through cash or bank transferring notes. 14. Implement the work. After obtaining a number of money from the bank, KSM/Ornop

will start to implement the work. The work implementation is based on the schedule stated in the work plan. Any expenditures of the work implementation should be enclosed with the quittance. In addition, a resume reporting the main activities of the program should be established. The resume will perform as input for the formulation of activity report.

15. Provide a technical supervision to KSM/Ornop. The related institution appointed to

provide a guidance pertaining to technical assistance to the important points becoming the indicators of the activity success, such as the use of technical design, the measure usually used for the physical development activities. In addition, the supervision task will be undertaken by the assigned institution.

16. Prepare a progress report. In line with the resume and any other activities,

KSM/Ornop will prepare a progress report. The report includes several constituents of executive summary, activities per diem/month, progress per activity, problems/bottlenecks and conclusion. The progress report is completed with several required annexes, such as worker presence list, financial report, resume of activities, etc.

17. Monitor and evaluate the project implementation and the outputs. Soon after

accepting the progress report from KSM/Ornop, Bappeda will examine the report, and if necessary, conduct a field visit to see the real outputs of the activity. Pertaining to financial aspects, examine any kind of expenditures and the cost/price. If there are no bottlenecks during the implementation, Bappeda will issue an approval letter stating the acceptance of the progress report. If there are several things to be improved, Bappeda will ask for KSM/Ornop to revise the report.

Bappeda will conduct an evaluation and monitoring to the use of program financing, physic/program progress, participation of other stakeholder (if stated in the work plan) as well as any outputs stated in the work plan. Bappeda could sign a notice to KSM/Ornop if the work implementation is not adjusted with the work plan. Finding several bottlenecks during the work implementation, KSM/Ornop should consult with the assigned institution or Bappeda.

18. Prepare the project documentation. Bappeda will prepare the project

documentation. All the reports and other documents pertaining to the project planning and implementation will be documented.


AGENDAAGEGENDAAGENENDAAGENDNDAAGENDADAAGENDAAAGENDAAGEGENDAAGENENDAAGENDNDAAGENDADAAGENDAAAGENDAAGEGENDAAGENENDAAGENDNDAAGENDA

AGENDAAGEGENDAAGENENDAAGENDNDAAGENDADAAGENDAAAGENDAAGEGENDAAGENENDAAGENDNDAAGENDADAAGENDAAAGENDAAGEGENDAAGENENDAAGENDNDAAGENDA

Department of Settlements and Regional Infrastructure

Executing Agency: Funding Agencies:

Swiss Agency for Development

and Cooperation (SDC)

Cities AllianceCities Without Slums

Cities Alliance World Bank Electrowatt Infra-Switzerland (EWI) jaakko poyry group

Consultant:

REGIONAL DEVELOPMENT AND POVERTY REDUCTION PROGRAM