Indonesia: Sustainable Capacity Building for Decentralization

Sovereign Project | 35261-013

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Project Name Sustainable Capacity Building for Decentralization
Project Number 35261-013
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 1964-INO: Sustainable Capacity Building for Decentralization
Asian Development Fund US$ 42.22 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Public sector management - Decentralization

Gender Equity and Mainstreaming
Description The proposed Project will develop institutional capacity for 38-40 regional governments within the geographic focus area of the Asian Development Bank (ADB), to increase their operational capability with regard to: (i) the efficient delivery of public services in accordance with minimum service standards, (ii) the maintenance of essential public facilities, (iii) the promotion of equitable economic development, and (iv) the management of poverty reduction programs.
Project Rationale and Linkage to Country/Regional Strategy Indonesia is undergoing significant political and economic change. The ultimate goals for the transition to democracy and a market economy stand in sharp contrast to the country's centralist and authoritarian past. The ongoing decentralization process represents an attempt at substantial governance reform, illustrating the magnitude of current change. Administrative, fiscal, and service delivery responsibilities have been shifted from central Government to regional governments and most administrative functions and service delivery are now the responsibility of district governments. Decentralization has clearly moved decision making and resource management closer to the ultimate stakeholders. However, district governments have little experience in many decentralized functions and the capacity to provide good and effective governance is insufficient in many cases.
Impact Regional governments with measurably increased operational capability to: (i) deliver public services efficiently in accordance with established minimum service standards, (ii) maintain essential public facilities, (iii) promote economic development, and (iv) manage poverty reduction programs.
Project Outcome
Description of Outcome Developed institutional capacity of the regional governments by increasing their operational capability
Progress Toward Outcome Through the implementation of Capacity Building Action Plan (CB-AP) -which consist of training component and management information systems development, the participating regional governments increase their operational capability. As example, the one stop services reduce time of services to issue licenses.
Implementation Progress
Description of Project Outputs

An efficient market in capacity building services in targeted provinces (cost-competitive, high quality, adequate product range) realized

A legally mandated process of action planning (CB-AP) to support sustainable capacity building within targeted regional governments institutionalized

A system of providers regulated primarily by market forces, but supported by essential marketing networks, database, and certification systems created

Status of Implementation Progress (Outputs, Activities, and Issues)

- Capacity building services is realized in the participating local governments. Qualified service providers are able to deliver the services as required.

- Capacity Building Action Plan (CB-AP) in each participating local government has been legalized through the Regional Strategic Plan (Renstrada) which secures the implementation of the CB-AP. The Government is proposing a draft regulation (Presidential Regulation) on capacity building program for local government ensuring a CB-AP institutionalized within the local government.

Geographical Location The project covers 38 districts in ten provinces which are North Sumatra, South Sumatra, Lampung, Banten, West Java, Jogjakarta, Central Java, East Java, West Nusa Tenggara, and Southeast Sulawesi
Safeguard Categories
Environment C
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Consulting Package C-2: District Capacity Building Action Plans (CB-APs):

In the interests of efficient administration and economies of scale, procurement of services to implement the approved district CB-APs will be carried out on the basis of one umbrella package covering all activities for each district government. Domestic capacity building service providers, or Indonesian subsidiary of international capacity building service providers, will bid for each umbrella contract on a competitive basis, in accordance with ADB's Guidelines on the Use of Consultants. However, bidders would include, as necessary, international services and goods required to implement the respective district CB-APs.

As there are 38 districts participating in the project, there will be 38 contracts for Package C-2: District CB-APs

The consultants will provide expertise primarily in relation to: (i) capacity building, (ii) human resources management, (iii) financial management, (iv) ICT, (v) institutional development, (v) curriculum development, (vi) training of trainers, (vii) project management, (viii) audit, and (ix) gender and social development. The consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants using quality and cost-based selection methods and other arrangements satisfactory to ADB for engaging domestic consultants.

Recruitment of Consultants for these consulting packages for all 38 districts are expected to take place in the first and second quarter of 2005.

Procurement

ADB-financed goods (the ICT package) will be procured by international competitive bidding in accordance with ADB's Guidelines for Procurement.

The project ICT system will set up a network of all project components to facilitate efficient implementation. It will help establish a National Resource Center to be housed in LAN and networked with provincial centers. The Center will house a database of regional capacity-building service providers, and provide forums to exchange essential information for both buyers (e.g., to advertise business opportunities and requests for proposals) and sellers of capacity-building services (e.g., to record experience, capacity and products) and to exchange experience on best practices at senior officer level. The ICT system will develop a web-networked regional system, nationally coordinated by LAN to manage accreditation for short courses on core and specialist skills and certification for trainers. It will also include archives for capacity-building best practice, publications, and a distance learning facility to support part-time and combination training.

Responsible ADB Officer Deeny Simanjuntak
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Ministry of Home AffairsDir General of Regional Autonomy
Jl. Medan Merdeka Utara No. 7
Jakarta Selatan
Timetable
Concept Clearance 22 Feb 2011
Fact Finding 26 Aug 2002 to 06 Sep 2002
MRM 25 Sep 2002
Approval 10 Dec 2002
Last Review Mission -
PDS Creation Date 25 Aug 2006
Last PDS Update 18 Jul 2012

Loan 1964-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2002 31 Jul 2003 05 Sep 2003 30 Jun 2009 31 Dec 2011 07 Aug 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 55.09 Cumulative Contract Awards
ADB 42.22 10 Dec 2002 39.44 0.00 100%
Counterpart 12.87 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2002 39.44 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory - Satisfactory

TA 4022-INO

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 - 0.00

TA 4023-INO

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 - 0.00
Title Document Type Document Date
Sustainable Capacity Building for Decentralization Project Project/Program Completion Reports Oct 2012
Sustainable Capacity Building for Decentralization Project Reports and Recommendations of the President Nov 2002

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Indonesia: Sustainable Capacity Building for Decentralization Project Validations of Project Completion Reports Dec 2013

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