This activity is designed to: (1) strengthen the capability of service providers to assess and improve their own performance based on fundamental aspects of management and institution building; (2) support local government in its attempts to be more flexible in defining strategic options for improved performance in service delivery; (3) formulate guidelines (and a model) for strategic management and institution building for local service delivery providers; and (4) develop an action plan for scaling-up nationally the strategic management and institution building model for improved service delivery.

As a follow-up to the implementation of GR38/2007, this activity is designed to improve service delivery by helping central government to clarify further the allocation of authority and responsibility for selected services across levels of government. It will do this by: (1) strengthening MoHA’s capacity to facilitate, monitor and evaluate the formulation of norms, standards, procedures and criteria for service delivery in all sectors; (2) supporting ministries in the formulation of norms, standards, procedures and criteria (NSPK) for service delivery and thereby helping them to define more clearly the roles and responsibilities of every level of government in a number of selected sectors; and (3) assessing the extent and quality of the implementation of NSPK by local governments.

This activity is designed to support the implementation of minimum service standards (MSS) as a means for improving access to and quality of basic public services. It will do this by: (1) Improving MoHA’s capacity to work with other ministries to cost MSS for selected sectors, including the drafting of a manual on this subject for local governments; (2) supporting central and provincial governments in MSS implementation in selected local governments; (3) developing the capacity of selected local governments for the implementation of MSS and integration of MSS in their planning and budgeting documents; and (4) in selected sectors, examining whether there is any relationship between MSS and the attainment of the Millennium Development Goals.

The goal of this activity is to support the development by government of the domestic market for municipal bonds and to institutionalize relevant capabilities to carry out such work within government. Once established, a market for municipal bonds will provide an important means for accelerating the financing of urban infrastructure, which is government policy. The activity seeks to achieve its objective through: (1) the organization of an international workshop on municipal bonds and follow-up training activities; (2) the provision of sustained guidance and on-the-job training to selected sub-national governments concerning the preparation of municipal bonds for urban infrastructure financing; and (3) analyzing, and making recommendations concerning the enhancement of, the creditworthiness of sub-national governments. Capacity for doing the latter will be built in the Ministry of Finance through a combination of on-the-job training and action learning.

This activity is designed to improve the quantity, quality, timeliness and sustainability of Regional Financial Information System data (Sistem Informasi Keuangan Daerah/SIKD) generated by those sub-national governments (SNGs) that have stand-alone electronic information systems and data bases, that is, those that are not among the 171 SNGs covered by the Local Government Finance and Governance Reform program supported by the Asian Development Bank. The objective will be achieved by: (1) developing a standard modification or ‘patch’ that can be used to extract electronically from local SNG systems the data needed by the centre that is currently supplied in hard copy and then entered manually into the central system; (2) testing the ‘patch’ in 10 SNGs in order to determine the extent of ‘tailoring’ that will be needed for it to be adapted to local system variations in other SNGs; (3) determining how such local ‘patch’ adaptation may best be done; (4) devising a scheme for rolling out ‘patching’ to all SNGs outside of the ‘171’, that is, those SNGs that have stand-alone systems; and (5) designing training programs to ensure that the skills necessary to do this work are institutionalized in government, particularly among staff of the Directorate for Funding Evaluation and Regional Financial Information (Direktorat Evaluasi Pendanaan dan Informasi Keuangan Daerah/EPIKD).

The activity is designed to support the endeavours of the Ministry of Finance’s Assistant Team for Fiscal Decentralization (TADF) to clarify and specify in more detail the policy framework for fiscal decentralisation (the ‘Grand Design of Fiscal Decentralization’ - GDFD). As part of this work, and in order to provide grounds for its possible revision, the intentions, provisions and context of Law 33/2004 will be analysed. This law deals with fiscal balance between central government and regional governments. Achievement of the objective will also require: (1) research into areas covered by the GDFD and Law 33/2004, including careful analysis of vested institutional interests; (2) at different stages of its development, discussion of the GDFD with local governments and other stakeholders; (3) consultations with leading international experts in the field of decentralization concerning critical aspects of the development of the GDFD and its implementation; (4) comparative field studies of policy frameworks for fiscal decentralization and of the implementation of such frameworks; (5) close and continuous collaboration with the Ministry of Home Affairs; (6) the preparation of a plan for establishing the legal basis of GDFD; and (7) the design of training programs to ensure that the skills and knowledge required for the development and assessment of public policy related to fiscal decentralization are institutionalized in government, especially among staff of the Secretariat Team for TADF.

This activity is designed to strengthen the capacity of provincial and district/municipal DPRD members and secretariats to perform their functions of legislation, budgeting, oversight and representation. Specifically, the Ministry of Home Affairs Directorate for Local Government Affairs in the Directorate General of Regional Autonomy expects DPRD members and secretariats to: (1) understand changes to the governance system at the national level due to the constitutional amendment; (2) comprehend the impact of changes to the governance system for provincial and district/municipal DPRD; (3) recognize the relationship between the head of the region and DPRD in the new governance system; (4) acquire technical capacities needed to perform DPRD functions; and (5) become accountable to citizens and government, conscious of the pitfalls and pressures to be otherwise, and aware of the consequences of transgressions under the law. The program will include capacity strengthening workshops based on local needs assessments, action learning (including on-the-job training), and monitoring and evaluation of targets set for the various DPRD functions.

With a view to furthering the development of a merit-based civil service, the Government Education and Training Center (Diklat) has initiated a broad reform program to improve human resource development and human resource management in MoHA by making such practices competency-based. Towards this end, the DSF activity will support the design and piloting of competency-based training and education related to an important public service, namely, ‘population administration’. Within this service field, the activity will: (1) develop a strategic framework for the introduction of competency based standards; (2) build capacity for the formulation of competency standards and the conduct of national and regional needs assessments; (3) hold workshops to formulate competency standards in Population Administration for MoHA and selected regional governments; (4) develop a competency-based curriculum and methodology in Population Administration; and (5) pilot competency-based training and education courses in Population Administration within MoHA and in three selected provinces and kabupaten/kota. The activity will analyze questions surrounding the management of competency-based human resource development, particularly how to make judgments about whether such work should be out-sourced or not and it will explore possibilities for the formation of partnerships with local universities, civil society organizations, and the private sector. Based on an evaluation of the overall activity, a plan will be written for scaling-up the activity nationally.

This activity aims to provide high quality decentralization education and training for central and local government officials and civil society leaders on important aspects of public service delivery, principally fiscal decentralization and social accountability. Fiscal decentralization issues (such as how central funds are allocated across different regions), the conditions attached to these transfers, and whether or not local governments have their own sources of revenue determine who pays, who monitors, and who is ultimately responsible for the quality of public services. Social accountability also plays a crucial role in affecting service quality by affirming a basic tenet of democracy: that citizens have a right to demand efficient and equitable services and that public actors have an obligation to be accountable to the citizens. The education and training provided will include: workshops, seminars, and short courses conducted in Indonesia and overseas; action learning and on-the-job training and follow-up in Indonesia; international study tours; and scholarships for young professionals to pursue one-year Master degree programs in the UK.

As part of the Government’s strategy to reduce inter-regional disparities, this activity is designed to lead to better-informed and better-managed policy making for regional development. This is to be achieved by assessing the suitability, availability, and validity of relevant data; analyzing policy making processes; and determining how best to develop more effective policies for regional development. A core component of the project will be to develop Bappenas capacity and to achieve cross-ministerial consensus on new approaches.

This activity builds institutional capability at different levels of government for the better horizontal and vertical integration of sectoral, development, and spatial planning. It does this by: (1) examining means for the better vertical integration with national spatial plans of sectoral and development plans produced at different levels of government; (2) examining means for the better horizontal integration of local government spatial and development plans (for contiguous areas); (3) designing and delivering training programs to institutionalize the necessary capabilities at different levels of government; (4) analyzing relevant organization and management systems and making recommendations for their improvement; (5) to begin with, undertaking this work in a small number of pilot provinces and districts; and (6) producing a plan for the scaling-up of such institution building nationally.

This activity supports the Government of Indonesia’s intention to accelerate the social and economic development of border areas and thereby - at the same time - to contribute to the enhancement of border security. To help bring this about, support is provided to Bappenas to improve its capacity for data collection and analysis and cross-ministerial policy formulation. Support to MoHA is designed to strengthen government institutions at all levels that are responsible for providing management and development support to border areas; and a sample of service providers. Baseline data on development outcomes in border areas will be gathered and used by government as a basis for measuring progress in development over the course of the next five years (during the implementation of the Medium-term Development Plan 2010-2014). Policy reformulations will seek to improve service delivery and economic development in border areas, and through this to enhance border security. Institutional strengthening will include developing the capabilities of the newly-established Agency for the Management of Border Areas, at national and regional levels.

This activity seeks to improve the way natural resources are managed by local governments. More effective management will boost local economic development and provide additional revenue for local governments to finance service delivery. Towards this end, the activity will: (1) examine in a small number of local governments the ways in which a sample of natural resources is managed; (2) consider means for improving such management and propose organizational changes and capacity building measures at the local level that take into account important aspects of the political economy context and draw on comparative experience; (3) build local capacity for undertaking such organisational development in two pilot areas; (4) make suggestions for the revision of governing legislation and on broader issues of organizational design at other levels in the government system, and; (5) establish principles underlying the better management of the sample natural resources that may be generalized to other local governments and/or natural resources; (6) devise training and development programs that embody these general principles and can be used as the basis for their dissemination; and (7) design training and development programs for carrying out such dissemination in the relevant sections of Bappenas.