Regions and Countries

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p. 20 of 33 BACK | NEXT I. Current Development Trends and Issues II. The Government's Development Strategy III. ADB's Development Experience A. Impact of Past Assistance B. Portfolio Performance and Status C. Lessons Learned D. Conclusions and Lessons for the Country Strategy and Program IV. ADB's Strategy V. ADB's Assistance Program VI. Risks and Performance Monitoring and Evaluation

Country Strategy and Program 2006-2009 (Draft for Consultation): Indonesia : III. ADB's Development Experience

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D. Conclusions and Lessons for the Country Strategy and Program

70. Before, during and after the crisis, ADB has been an important development partner of Indonesia. During the crisis and its aftermath, the ADB was responsive to the immediate needs of the Government, but could not adjust quickly enough to the new realities of the decentralized environment. The crisis and the subsequent democratization and decentralization process has also diluted the capacities within line agencies and at the local levels. This has increased the challenges the Government faces to implement its program, and ADB to design and implement programs that respond to the Government’s needs and are appropriate for current circumstances. The new strategy needs to recognize that ADB’s traditional products may no longer be appropriate or effective, and innovative approaches are needed.

71. Many of ADB’s interventions in the recent past have focused on the decentralized levels. Whilst impact is being achieved at the local levels (communities and villages), these interventions are rarely upscalable. At the same time, the administrative and transaction costs for both Government and ADB for these projects are high. This points to the need for an approach where ADB should work increasingly using existing Government systems and supporting Government programs, and work with and through other development partners that have the capacity to work effectively at the local levels.

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