Regions and Countries

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p. 30 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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D. Indicative Internal Resource Requirements

118. In recent years, decentralization and corruption issues, among others, have made ADB operations in Indonesia very labor intensive. The large number of agencies and offices involved in all projects, even national ones, requires continued consultations and follow up by ADB staff to ensure that projects are moving forward. At the same time, development partners and civil society have also become more active with their own programs. The Government and the development partners and civil society prefer to work with the Indonesia Resident Mission (IRM), given its accessibility and in-house country knowledge. However, since IRM was established in 1987 primarily to help supervise projects, there is now a growing need to review its current resources and skills mix in the light of the evolving needs of Indonesia and the medium–term strategy of ADB. Current staff strength in SERD and PSOD may appear to be adequate to meet the requirements of the proposed program, but some adjustments may have to be made, including possible transfer of staff to IRM to help enhance the impact and effectiveness of ADB’s operations in Indonesia.

119. More recently, IRM has been tasked to process program loans besides coordinating field work for other program loans, which entail substantive policy discussions. The growing needs have been in the areas of: broader macroeconomic policy reforms; decentralization; financial sector; infrastructure development (policy; legal and regulatory reforms); and public expenditure management (with emphasis on poverty reduction and MDG acceleration). As part of the ongoing CSP dialogue, the Government has been quite clear on the need for significant program lending support in the above areas over 2006-2009. As ADB revives its operations in Indonesia, the expectation is for IRM to take on more responsibilities and tasks, including closer collaboration with the Government and development partners. Newer demands on IRM resources have also emanated from the need to respond to disaster management, the need to promote private sector participation and the need to facilitate ADB’s role in regional cooperation, including those activities involving ASEAN, whose secretariat is located in Jakarta.

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