Regions and Countries

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p. 29 of 33 BACK | NEXT I. Current Development Trends and Issues II. The Government's Development Strategy III. ADB's Development Experience IV. ADB's Strategy V. ADB's Assistance Program A. Overall Assistance Level B. ADB Assistance for the Strategic Priorities C. External Funding Coordination and Partnership Arrangements D. Indicative Internal Resource Requirements VI. Risks and Performance Monitoring and Evaluation

Country Strategy and Program 2006-2009 (Draft for Consultation): Indonesia : V. ADB's Assistance Program

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C. External Funding Coordination and Partnership Arrangements

115. The Government has signaled that it intends to take a stronger lead in donor coordination, and would like to see donors align themselves increasingly behind Government priorities, in line with the Paris Declaration. It has taken up the chairing of CGI meetings. Given the complex environment and capacity issues at central and local government levels, effective coordination of external assistance remains a challenge. Appendix 1, Table A1.5 has a matrix showing donor activities in various sectors. A number of donors are supporting a diverse range of decentralization activities, which are increasingly coordinated in an effective manner through the donor working group on Decentralization and the DSF.

116. Policy dialogue harmonization has made important progress in recent years. The Development Policy Support Program⁵³ and the Infrastructure Reform Program are good examples where major donors have developed and sustained a strong joint policy dialogue with the Government. Another area is the investment climate, where potential areas include anticorruption and decentralization. The recent experience with the DSF joint initiative has shown the potential for harmonization and alignment in the area of decentralization. GTZ, CIDA and AusAID are expected to join. As DFID is channeling almost all of its funds through the DSF, continued partnership with DFID will focus on poverty reduction through improved decentralized governance, in partnership with other donors as well. The ongoing partnership with the Netherlands, under which ADB projects are co-financed, will be further strengthened and reoriented to supporting private sector development and investment climate related initiatives. The partnership with AusAID is in the process of being considerably strengthened, initially focusing on education and infrastructure development. The potential for other areas is being explored. Continued cooperation with the European Commission in the education and other sectors will be pursued.

117. The role of external assistance in the provinces of Aceh and Nias in the wake of the December 2004 tsunami has been special. With unprecedented amounts having been committed by the international community, strong donor coordination and supervision has emerged, as well as a strong focus on fiduciary control and anti-corruption. The experiences in Aceh and Nias may well have significant lessons for the role and nature of external assistance in the future, and for disaster risk management overall. With the recent earthquake in Central Java and Yogyakarta, on 27 May 2006, the Government has shown strong leadership of donors for rehabilitation and reconstruction, even when emergency operations are still ongoing.

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