127. This CSP signals ADB’s intention to manage its activities more proactively, to increase
development effectiveness and achieve sustainable development results. It will contribute to
specific goals set in the RPJM, with specific goals, targets and process indicators. A CSP
results framework has been prepared to serve as a management tool for delivery of results
(Table 5). Given the complexity of the country context, the emphasis is on a limited number of
process indicators to measure progress towards the ultimate goals and targets. Specifically, the
results framework will assist in (i) monitoring the progress made during CSP implementation,
supplemented by TA and loan review missions; (ii) providing an overall framework for the design
of new projects; (iii) regularly updating and adjusting the assistance program to ensure that
ADB’s contribution to the desired outcomes remains valid; and (iv) evaluating the impact of the
CSP. The results framework also serves to link ongoing operations to indicators of key expected
outcomes for update during the CSP review, and the annual portfolio reviews. The results
framework may be periodically updated to ensure its continued relevance, in line with changes in the development setting and the management of the ongoing portfolio. Individual
interventions will be closely aligned with the CSP outcomes. Project and program monitoring
frameworks will be linked, through sector roadmaps, to the delivery of the desired CSP
outcomes.
128. Within the Government, Bappenas is responsible for monitoring of the implementation of
the RPJM, as well as for the coordination of international development assistance, and relies for
the information on regular monitoring reports provided by the executing agencies as well as by
the donor agencies. The monitoring of the RPJM is being strengthened with the introduction of
annual work plans, their linkage to an outcome-based budget, and the gradual introduction of a
medium-term expenditure framework. In this context, the development of a results framework
for the next five year plan (2010-2014), would be highly beneficial and allow for close monitoring
of progress. ADB will provide TA to the Government to help establish the consultative processes
for such a framework, and support the development of the results framework for the next plan.
The statistical systems in place in Indonesia are generally robust and will allow for solid
monitoring of RPJM progress. The Central Bureau of Statistics regularly publishes survey data
that allow for a detailed tracking of MDG-related outcomes, as well as those related to economic
growth and job creation. Measures of corruption are regularly published by international NGOs.
ADB, WB, USAID and GTZ are working on a measurement system to regularly evaluate the
performance of local governments.
129. CSP monitoring and evaluation will follow the indicators included in the results
framework and the roadmaps. In designing the roadmaps and the results framework, progress
indicators have been selected so they can be realistically measured without posing any
additional burden. The development of the CSP has been used to initiate discussions with the
Government on results-orientation as a management tool. This is in line with the Government’s
introduction of an output budgeting system. Given the size and scope of the challenge,
continued work to further results-orientation will be needed during the CSP period. Appendix 3
provides an assessment of the Government’s current capacity to manage for results. The
Government and ADB will jointly evaluate mid-term progress, as well as achievements at the
end of the CSP period. Results indicators are thought to be achievable within the RPJM
timeframe, as well as the CSP intermediate indicators. The outcomes of the mid-term and final
evaluation of the CSP outcomes will be shared with the other donor partners and civil society.
Table 5: Country Strategy and Program Results Framework (2006-2009) |
Government’s Medium Term Development Agenda
(RPJM) |
Asian Development Bank Strategic Focus |
Direction of Interventions |
| Strategic Goals |
Key Constraints |
CSP Outcomes |
Tracking Indicators |
|
Higher economic growth
through greater
investments including
enhanced infrastructure
provision
|
Low investments in
infrastructure
Low private sector
participation in infrastructure
development due to adverse
investment climate
Weak legal and regulatory
environment
Inadequate land acquisition
mechanisms in place |
A. Infrastructure and
Infrastructure Services
Strengthened legal and
regulatory framework for
private sector participation in
infrastructure developmentinfrastructure development
Accelerated private sector
participation
Long-term financing
mechanisms for infrastructure
financing under development |
At least 3
regulatory
bodies made fully
independent by 2009
At least 20% of private
sector financing
provided by domestic
financial institutions by
2009
10 PPP infrastructure
projects for which
bidding completed by
2008
Annual Investments in
infrastructure at least
7% of GDP by 2009
Private sector
mobilization of 40%-
50% of infrastructure
investments by 2009
|
Program lending:
Infrastructure sector
reforms
Financial sector reforms
State-owned enterprise
reforms
Investments:
Non-recourse lending to
SOEs
Sovereign and nonrecourse
lending for
PPPs
Sovereign lending for
transport and energy
projects
Infrastructure financing
facility
Capacity development
in project preparation
|
|
Lack of basic infrastructure
in remote areas |
Targeted provision of basic
infrastructure and support
services to communities |
Number of
communities
receiving basic
infrastructure support
more than 2000 by
2009 |
|
| Greater domestic
resource mobilization
to support growth |
Inefficient intermediation
and allocation
Limited range and financial
instruments
Weak enforcement of the
legal and regulatory
environment
Weak risk management in
financial institutions |
B. Financial Sector
Deepening
Long-term financing options
strengthened
Legal and regulatory
environment strengthened
and improved enforcement
Long term investment options
increased
More efficient financial sector
intermediation
Role of the non-bank sector in
financial intermediation
increased
Capacity of financial sector to
provide long term financing
enhanced
|
Increase in the size of
the local bond market
30% by 2009
Enhanced capacity
among regulators to
strengthen the
regulatory environment
Number of institutional
investors providing long
term financing
increased by 20% in
2009
Increased competition in
rural and microfinance
markets following
consolidation of BPRs
leading to a
decrease of
2
percentage points in
borrowing costs, by
2009
ADB successfully
issued 3
local currency
bonds by 2009
|
Program Lending
Financial Sector Policy
Reforms
Project Lending
Non-sovereign loans
to SOE, municipal
entities, financial
intermediaries incl
microfinance
Issuance of local
currency bonds |
Pillar II: Increasing the Welfare of the People |
|
Unequal financing of the
regions
Lack of capacity at the local
level
Local governments’
investment focus on urban
investments
Fragile districts throughout
the country
|
A. Decentralization
Financing of local government
investments secured on a sustainable basis
Improved capacity for fiscal
accountability at the local
levels
Intergovernmental fiscal
relations clarified
Functional assignments at all levels of government
established
Central government financing
of local government based on
needs
Clear local government fiscal
accountability framework
established
Investments in social
infrastructure in accelerated
Strengthened regional
government capacities
|
Increase in regional
development spending
by 10% annually up to
2009
Improvement in quality
of and consistency of
local government
financial reporting
|
Program lending
Local Government
Financing and
Governance Reforms
Investments
Capacity
Development |
|
|
B. MDG Acceleration
Pro-poor planning and
budgeting at the local levels
improved
Public expenditures at local
levels better aligned with
local poverty reduction
strategies
Systems of administered
prices and subsidies
improved
|
Health and education
spending at least 3%
of GDP by 2009 |
Program loans
MDG Acceleration
Investments
Water Supply and
Sanitation
Integrated
Settlements
Neighborhood
Upgrading II
Rural infrastructure
Community Water
Supply and Health II
Community and
Local Government
Support II
|
|
Natural Resources
Management done on a
more sustainable basis,
with an economic return
for the poor
Incidence of pollution reduced
|
Inadequate natural
resources management
capacity at national and
local levels
Overlapping
mandates/functions of Government agencies
Low awareness among
Government, public and
resource users on
sustainable resource
management
Increased pressure on
natural resources for
livelihoods
Lack of integrated water
management in a
basin
context
Weak pollution control
Inadequate public-private
investment for air quality
improvement
|
C. Environment and Natural
Resources Management
Improved management of
water resources
Improved coastal and
marine resources
management
Creation of livelihoods/
economic opportunities
Well functioning community
based management
Adherence to principles of
integrated coastal
resources management
Well managed coastal and
marine protected areas
Implementation strategy on
air quality improvement
strengthened
Investment in air quality
improvement initiated
Air quality management
capacity of participating city
governments built.
Compliance of national
ambient air quality
standards at least 340 days
in a
year latest by 2015.
|
Extent of irrigation
schemes
Better water supply
Reduced flood and
drought risks
6000 hectares of coral
reef rehabilitated by
2009
700 hectares of marine
protected areas
sustainably managed by
2009
30% increase in
aquaculture production
in 6
districts by 2009.
Increase of natural gas
utilization in public
transport and industry
sector at least 5% in
selected cities in 2009
Unleaded gasoline with
sulfur content of 500
ppm and diesel fuel with
sulfur content of 500
ppm available nationwide
by 2007
Reduction of air
emissions from motor
vehicles by 50% in
2020 vs the level of
emissions in 2007 in
participating cities
Reduction of air
pollution from industrial
activities by 50% in
2020 vs that in 2007.
|
Investments
Water resources
management
Flood protection
Coastal resources
management
Investment and Program
loans
Urban Air Quality
|
Cross Cutting Thematic Area: Public Sector Governance
|
| Accelerated economic
growth through
improved investments
and better public sector
management |
Poorly skilled workforce in the
public sector performing
poorly; lack of accountability
and performance standards
and measurements
Corruption systemic in the
public sector
|
Improved and measured
performance in key sectors
Strengthened anticorruption
mechanisms and institutions
Improved interaction between
levels of government
Improved public sector
performance
Reduced corruption
|
Relationship of DAK to
DAU transfer
increased to 30/70 by
2009
Strengthened
prevention capacity of
KPK
All Government
accounts transferred
to a
Treasury Single
Account
An improvement in
Indonesia’s ranking in
Transparency
International’s
international ranking
of corruption
perception of at least
15 steps
|
Program lending:
Local government
Financing and
Governance
Reforms
State Audit Reform
Sector Program
Retrenchment and
Early Retirement
Schemes as part of
civil service reform
Development
Policy Support
program
Others:
Strengthening the
prevention capacity
of KPK
Continued
procurement
reform
|
Regions and Countries 
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