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ASEM Annual Review Meeting Brussels, June 28, 2006 ASEM PORTFOLIO PERFORMANCE AND IMPLEMENTATION PROGRESS. The Government of Indonesia. Portfolio Performance and Result. Focus ASEM TF II: improving the investment climate for economic recovery and promoting growth

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The Government of Indonesia

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The Government of Indonesia

Portfolio Performance and Result

  • Focus ASEM TF II:

    • improving the investment climate for economic recovery and promoting growth

    • Making service delivery responsive to the needs of the poor

    • Governance and anticorruption efforts

  • Allocation for Indonesia 2002-2005 USD 7.0 million

    • 16 projects: 8 on-going and 8 closed

    • USD 3.5 million has been disbursed, USD 3.3 million is expected to be disbursed

Implementation progress, constraints, and opportunities

  • Delays in disbursement happen for budget administration complexities and frequent re-organization.

  • The Government plans to revive ICSC meetings to expedite disbursement and enhance performance

  • It is essential to build concurrence on mechanism, selection criteria, and monitoring and evaluation system among Government as recipient, the World Bank as administrator, and other involved donors.

The Experience of ICSC

  • Ministerial Decree No. Kep.306/M.PPN/10/2002 was issued to establish ICSC consisting members of related Government agencies.

  • ICSC collaboratively established a mechanism to facilitate cooperation between the Government and the Bank. Unfortunately, some staff of the Bank apparently had not been satisfied with the mechanism.

  • Issues should be resolved:

    • Clarity on criteria for proposal selection

    • Lack of Government role on monitoring and evaluation

    • No appropriate cooperation in evaluating a project: no cross check before issuing some evaluation report

    • Little information on Bank executed projects

Recommendation for Future ASEM TF

  • Refer to lack of transparency and unclearness in mechanism of proposing projects as the case with ASEM TF II, the Government has several recommendations as follows:

  • To enhance the optimal operation of ICSC, it is essential to formulate a joint MOU among the recipient, TF administrator, and involved donors in order to formulate a clear mechanism in selecting project proposals.

  • A comprehensive discussion on expected beneficiaries of project is essential in order to insure that the project produces positive impacts and benefits.

Recommendation for Future ASEM TF

  • Discussion to define the target beneficiaries is essential in order to have a positive impact on those who are most in need.

  • The Government, the Bank, and the involved donors should cooperate and develop a mechanism for monitoring and evaluation of ASEM TF II projects.

  • There should be clarity on the agencies eligible for submitting proposals.

Thank you

Brussels, June 28, 2006

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