Indonesia Road Map

for Aid Effectiveness

Lukita D. Tuwo

Deputy Minister/Chairman for Development Funding

Ministry of National Development Planning/Bappenas

Manila, 24-25 August 2009

… only for Health sector

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 Milestones in Aid Effectiveness
In late 1990s, international movements of AID realized that transaction cost of aid was significant,
began working to harmonize

Monterey (2002),
International Conference on Financing for Development,
Rome (2003)
agreed to provide more financing for development,
High-Level Forum on Harmonization,
and aid effectiveness
committed to take action to improve the manageme
and effectiveness of aid, and
to take stock of concrete progress

Paris (2005), High-Level Forum

endorsed the Paris Declaration on
Aid Effectiveness to promote the effective use
of aid funds.

Accra (Sept 2008), High-Level Forum

Doha (Nov 2008), Follow-up International Conference
endorsed Accra Agenda of Action/AAA
on Financing for Development
to accelerate progress in Aid Effectiveness
ndorsed Doha Declaration on Financing for Development,
reaffirming the Monterrey Consensus

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he Jakarta Commitment: Aid For Development Effectiveness, Indonesia’s Road Map To 20
 Indonesia’s Development Challenge
 Indonesia is a middle income countries, with a 230 million
of population. Yet, Indonesia continues to face significant
development challenges, especially in the areas of poverty
reduction, service delivery and decentralization.
 Poverty rates have fallen to 14.1% in 2009, yet large
numbers of Indonesians remain poor and vulnerable.
Regional disparities are a key feature of poverty in the
country, given the vast size and varying conditions in
different parts of the country.
 Further efforts is still needed for Indonesia to meet all the
MDG targets.
 The implementation of decentralization remains complex
and continues to pose challenges.
 Enormous efforts is still needed to address climate change
issues (mitigation and adaption)

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 ODA Contribution to Development
Effectiveness
 The main constraint : not the lack of financial resources but
the need to translate the existing resources into better
development outcomes  to maximize the effectiveness of
all its resources committed to development, including
external assistance.
 Total all grants and loans less than 5% of government
spending;
 How can ODA contribute to development effectiveness?
• To ensure more effective and efficient utilization of
domestic resources  to access international knowledge
and best practice, and to enhance institutional capacity,
• To establish systems that are up to standards of
international best practice. It is about putting the right
systems in place.
 Indonesia would like to :
• Participate in and influence international aid architecture
from a MIC perspective
• Maximize impact of declining Official Development
Assistance for development effectiveness
• Expand partnerships with alternative forms of finance 5
ODA Contribution to Development
Effectiveness
Sound Program

Development
Instruments Effectiveness
(Budget,
Procurement, etc)

Resources
(Fund, Human
Capital, etc)

AID EFFECTIVENESS 6
 Indonesian Road Map to
Development Effectiveness
 Paris Declaration (2005) and Accra
Agenda for Action (2008) – taking it
further
 Jakarta Commitments:
• Joint aspirations (not legally binding)
regularly reviewed
• Three areas of commitments
 Action plan and Targets to 2010 and
vision to 2014

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 Paris Declaration (2005)
From donorship to ownership

Develop ment
Eff ec ti ven ess

5. Mutual accountability
1 Owners hip
(Partner countries)
Par tners
set the

4. Results, &
ag enda

Al ig nment
2 (Donors - Partner)
Ali gning with Us ing
partner s’ par tn ers ’
agend a sys tems

Estab li shi ng
Shar ing
3 Harmo ni sation co mmo n Si mpli fyi ng
infor matio n
(Donors - Donors) arrang ements proce du res 8
 Accra Agenda for Action/AAA
(September 2-4, 2008)
PDA Making progress, but not enough, and will
take action to accelerate progress
 Strengthening Country Ownership over Development
 Building More Effective and Inclusive Partnerships for
Development
 Delivering and Accounting for Development Results
 Looking Forward
• encourage developing countries to design—with active
support from donors—country-based action plans
that set out time-bound and monitorable proposals to
implement the Paris Declaration and the Accra Agenda
for Action

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 Areas of Commitments
 Commitment 1: Strengthening Country Ownership over
Development
• Improving the international governance of aid and
strengthening south-south cooperation
• Strengthening capacities and using stronger government
systems  Development partners will align their programming cycles
with those of government, use the government format for reporting their
assistance, and increasingly use government's financial management and
procurement systems. In the spirit of partnership, we will also encourage
development partners to fully, sincerely and transparently untie their aid.
 Commitment 2: Delivering and Accounting Development
Results
• Strengthening a focus on, and capacity to manage by, development results
• Working together to review progress across development partnerships
 Commitment 3: Building More Effective and Inclusive
Partnerships for Development
• Developing a new partnership paradigm
• Strengthening existing aid instruments and shaping new ones
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• Expanding dialogue to include new actors
 Indonesian Roadmap for Aid Effectiveness
(Jakarta Commitments) – Progress
 Of the total 30 partner of development, 26
partners have signed the document.
 We have established Secretariat for A4DE,
including donor trust fund to support it’s
activities.
 There are still reservations on issues on untying
aid, budget alignment and using procurement
systems. Only some donor has a roadmap to
increase untying aid
 Most DP interventions/responses on the action
matrix, eager to see the first steps to be taken by
GOI
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 A4DES Coordination Mechanism

Ministerial policy guidance

Reporting Policy Guidance

Funding Mechanism
Aid for Development Effectiveness Secretariat

A4DE
Trust Fund
Steering Committee Management
Office
Management Committee Reporting to
Chair of
Management
Committee
Development
Supporting all levels
Thematic Working Groups partner

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Flow of funds
 Working Groups
Unit/Working Group Participating DP *)
WG Procurement WB, ADB, JICA, Netherland,
Ausaid

WG Public Financial WB, JICA, Netherland, Ausaid,

Switzerland, DFID
Management
WG on Dialogue WB, JICA, Netherland, Ausaid,
Switzerland, DFID, CIDA,
Mechanism Germany, Usaid

WG Development of JICA, Netherland, Ausaid,

Switzerland, DFID
Financing Mechanism

WG Planning, Monitoring WB, JICA, Netherland, Ausaid,

Switzerland, Germany, DFID,
& Evaluation Usaid

WG Cap. Building & WB, JICA, Ausaid, Switzerland,

DFID, CIDA, UNDP, USaid
Knowledge Management

*) Other Development Partners are invited to join the Working 13

Groups
PA RIS D ECL ARATI ON : G OVERN MEN T
PR OCUR EME NT S TRATEG Y
Baseline Indicator &
Compliance Performance Indicator
Di ag no st ic Works
(2009 -201 0) Gap Analysis and Recommendation
(country system - dev. partners’ system)

Strategic Plan :
GP Reform (Phase 2)

Imp rovem ent on

St ra tegy Improvement of the GP’s System
Co un try Syst em
Government – Dev. Partners
Dialogues

Government – Dev. Partners

Action Plan
Alig nmen t Using Country’s
Procurement System
 NATIO NAL REFO RM on
GOV ER NMEN T PR OCUR EMEN T
 Government Procurement Reform started in year 2000 following the
“national reform 1998”. GP reform is a part of bureaucratic and financial
reform.
 3 Aspects in GP Reform :
1. Le gi slati on an d Reg ul atory F ra mewo rk.
The current national regulation is Presidential Decree Number 80 Year 2003. PD
80/2003 is a national regulation and guidelines to carry out public procurement by
central/local government institutions and state-owned enterprises.
1. Streng then ing the Pra ct ition ers.
Since 2005, procurement practitioners have to hold national procurement
certification.
1. Re form on I nst itution al Framew ork .
Presidential Decree Number 106 Year 2007 concerning Establishment of National
Public Procurement Agency (NPPA). The NPPA is aimed particularly to : develop
strategic, policy and regulation; Conduct monitoring-evaluation and developing e-
procurement; develop and improve capacity of procurement practitioners; and
provide advice and recommendation.
Dare to Do…
"Vision without action is merely a dream.

Action without vision just passes the time.

Vision with action can change the world."

Joel Barker

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Thank you