A4.3-1 MINUTES OF MEETING SOUTH-SOUTH COOPERATION (SSC) WORKSHOP Place : Mandarin Hotel, Jakarta Date : February 4 th , 2011 Time : 10.00 AM -05.00 PM Minutes: • The meeting was chaired by Mr. Dewo Broto Joko Putranto (Director of Multilateral Foreign Financing, BAPPENAS). • On the opening speech for the meeting, Mr. Dewo refreshed the results of workshop in Bandung on 14 th January 2011. • Mr. Adik explained the 2 nd draft of his paper, which prepared based on the recommendations from Bandung’s workshop. It was basically agreed to prepare the 2 outputs: Background Paper as the output of the Basic Study financed by JICA and the Grand Design as the output of the GoI. Basically he has prepared the background paper based on the inputs of the Technical Team especially Mr. Otto and Ms. Siliwati from BAPPENAS. However, since there were differences in writing background paper and the Grand Design, then the vision and mission as agreed in Bandung’s workshop were not included in the Background Paper but shall be included in the Grand Design. The paper focuses on technical cooperation rather than the economic cooperation. Now he is focusing in preparing the Background Paper. • Mr. Thalib from KADIN expressed that basically the economic cooperation is quite important at this decade, it might be in the Form G2G or B2B. It is also strengthened with the position of Indonesia in G-20., which requires Indonesia to think and act globally. • Ms. Theodora from BKKBN recommended to include the vision and missions as agreed in Bandung in the Background Paper. The Background Paper shall be provided more complete to strengthen the Grand Design. The prioritization as stipulated in page 20 of the 2 nd Draft should be clearly specified the clear output to be reached of each program. And it is important to specify the legal base and coordination mechanism in the institutional framework. • Mr. Darianto from Technical Cooperation Directorate of Ministry of Foreign Affairs (MOFA) expected that the Grand Design is a metamorphosis of the Background Paper. Therefore, it should be more comprehensive to be used as the reference for the Technical Team in the implementation stage later on. In regard to the PPP, MOFA has started to assign the staff to handle PPP project to be in line with the latest requirements to be focused on partnership concept, to expand the networking with NGO or private sectors. Related to the focus on Technical Cooperation, he agreed with Mr. Adik that Technical Cooperation shall be followed by the Economic Cooperation. Since he has logical think that the poor shall not be so easy to cooperate. Then to cope with the poor, technical cooperation shall be done first. For that purpose, for example now MOFA together with Setneg with the coordination with Ministry of Public Works cooperated to support Timor Leste in developing road in the border areas which aims will accelerate the movement of goods from Indonesia that affected to the economics of Indonesia especially NTB Province. And related to the
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A4.3-1
MINUTES OF MEETING
SOUTH-SOUTH COOPERATION (SSC) WORKSHOP
Place : Mandarin Hotel, Jakarta
Date : February 4th, 2011
Time : 10.00 AM -05.00 PM
Minutes:
• The meeting was chaired by Mr. Dewo Broto Joko Putranto (Director of Multilateral Foreign
Financing, BAPPENAS).
• On the opening speech for the meeting, Mr. Dewo refreshed the results of workshop in Bandung on
14th January 2011.
• Mr. Adik explained the 2nd
draft of his paper, which prepared based on the recommendations from
Bandung’s workshop. It was basically agreed to prepare the 2 outputs: Background Paper as the
output of the Basic Study financed by JICA and the Grand Design as the output of the GoI.
Basically he has prepared the background paper based on the inputs of the Technical Team
especially Mr. Otto and Ms. Siliwati from BAPPENAS. However, since there were differences in
writing background paper and the Grand Design, then the vision and mission as agreed in
Bandung’s workshop were not included in the Background Paper but shall be included in the Grand
Design. The paper focuses on technical cooperation rather than the economic cooperation. Now he
is focusing in preparing the Background Paper.
• Mr. Thalib from KADIN expressed that basically the economic cooperation is quite important at
this decade, it might be in the Form G2G or B2B. It is also strengthened with the position of
Indonesia in G-20., which requires Indonesia to think and act globally.
• Ms. Theodora from BKKBN recommended to include the vision and missions as agreed in
Bandung in the Background Paper. The Background Paper shall be provided more complete to
strengthen the Grand Design. The prioritization as stipulated in page 20 of the 2nd
Draft should be
clearly specified the clear output to be reached of each program. And it is important to specify the
legal base and coordination mechanism in the institutional framework.
• Mr. Darianto from Technical Cooperation Directorate of Ministry of Foreign Affairs (MOFA)
expected that the Grand Design is a metamorphosis of the Background Paper. Therefore, it should
be more comprehensive to be used as the reference for the Technical Team in the implementation
stage later on. In regard to the PPP, MOFA has started to assign the staff to handle PPP project to
be in line with the latest requirements to be focused on partnership concept, to expand the
networking with NGO or private sectors. Related to the focus on Technical Cooperation, he agreed
with Mr. Adik that Technical Cooperation shall be followed by the Economic Cooperation. Since
he has logical think that the poor shall not be so easy to cooperate. Then to cope with the poor,
technical cooperation shall be done first. For that purpose, for example now MOFA together with
Setneg with the coordination with Ministry of Public Works cooperated to support Timor Leste in
developing road in the border areas which aims will accelerate the movement of goods from
Indonesia that affected to the economics of Indonesia especially NTB Province. And related to the
A4.3-2
establishment of “National Focal Point”, MOFA is decided to invite Mr. Adik to discuss about it.
And it is also related to “East Looking Policy” to embrace the small countries in east areas.
• Related to identification of the flagship programs, there will be a lot of potency, but it necessary to
establish the criteria first to screening those flagship programs, such as: most offered programs
(intensity), issues those in line to the MDGs, needs of the beneficiary countries, who is the
competitor and what is the advantage of Indonesia compared to other competitor, or whether those
what has been done was appreciated by the developing countries, etc.
• Mr. Thalib from KADIN informed that currently the roles of Indonesia has been changed, therefore
the vision and missions also has to be changed in line with the shift of roles. The poor countries
require economic cooperation rather than technical cooperation nowadays. In term of technical
cooperation, Indonesia requires to further think about the institutional which aims to build an
understanding and mutual beneficial, which directed to the economic and technical cooperation,
building the capacity, etc. By participating global forum, strengthening regional custom regulations,
quarantine, trade investment dialogue can be done to encourage ECDC as well as to strengthen
cooperation. Lesson learned from past TCDC, many Asia and African countries now more
developed in some sector, since Indonesia opened all information during the technical cooperation.
So many threat were done to obtain Indonesian technology through the technical cooperation. Many
requests to the associations that many African countries request to learn how to build the rubber
factory, solar plant and IT. For example South Africa is willing to buy solar radiation from
Indonesia to cope their insufficiency in electricity supply. As the competitors, China and India are
moving forward and intensively entering African countries. Especially for micro finance, the Nobel
Price awarded for the Syariah based Finance which was modified from Indonesian Syariah
Financing system.
• Mr. Iwan from Ministry of Education asked whether the PPP legal base for strengthening the
private participation has been established or not? And it is necessary also to strengthen how the
relation between the triangular cooperation and the grant recording mechanism.
• Ms. Agustin (BAPPENAS) informed that related to the aid effectiveness there were 2 period:
before and after Paris Declaration in 2005, which is nationalized into the Jakarta Commitment in
2009. There was a forum in Bangkok, but it is not to cope with technical cooperation nor economic
cooperation, but more to the aid effectiveness. SSC is become intensively since it is written in the
road map. There will be a lot of things can be used for references before the Jakarta Commitment,
i.e. Trust Fund which was an advantage, the principle of partnership and ownership moreover since
Indonesia become the middle income country, shifting from beneficiary country into donor country.
How technical cooperation shifting into development cooperation and perhaps dev. Cooperation
become economic development, to achieve the vision “Better Partnership for Prosperities”. It is
also important to notice that not all of Indonesian technology shall be shared to the beneficiary
countries.
• Mr. Tholib informed that for knowledge sharing is very important value. Even, the develop
countries have never shared all of their knowledge to the developing countries. In G-20,
knowledge sharing is one of its pillars, which is implemented through development cooperation. It
is necessary to discuss about the need of knowledge sharing in SSC. In regard to the institutional, it
is better to dream about the great one. If there will be a National Focal Point, it should be connected
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to the International Institution. It is difficult to talk about cooperation if there is no relationship and
initiative. It is important to initiative Indonesia as a Leader. And hence there will be Council of
Minister (COM) at International level, and Senior Official Committee (CSO) at national level to
facilitate the private sectors.
• Mr. Dewo informed that now Indonesia as the Leader of ASEAN, Chairman of Task Team of SSC,
member of G-20, etc. Then the management in the national level is required to support the
achievement.
• Mr. Adik informed basically all of input shall be accommodated in the Background Paper. However,
it is necessary to make a commitment on the focus whether on technical or economic cooperation,
or shall be both? And related to the flagship program, what is the flagship program for the
economic cooperation?
• Input from Mr. Dewo:
- It is expected that all of the inputs and recommendations shall be accommodated in the
Background Paper.
- There is a repetition on the background, should be deleted.
- In regard to the strategic condition, it shall include the review on GDP, export value, and also
review of Standard Charter and ADB that Indonesia shall be no. 5 in the world on its
economics in 2030 or 2050. Then, it shall also include that south-south trade shall contribute to
the global GDP.
- In Global Issue, shall include SSC issue and position of Indonesia especially in G-20, and about
knowledge sharing for SSC, tandem with Australia for social protection, as the Leader of
ASEAN and for multilateral the role of ADB, World Bank in global cooperation shall also be
explained. RPJMN and foreign politics strategic plan as the reference.
- Vision and mission shall be included in the Grand Design and Blueprint. The needs to develop
the networking as explained by Mr. Thalib shall be strengthening factor to establish the national
focal point.
- The blueprint shall be brief, strict to the point.
- For the flagship program requires info from related Ministries/Institution, and the criteria
should be established. It requires to explain more details on Economic Cooperation, based on
the direction of Steering Committee how the Technical cooperation can boost Economic
Cooperation or how both of them being done in parallel to obtain best benefits from SSC.
- As for MONEV, the policy framework shall be more detailed explained.
- In general, shall reflect the outputs of workshop in Bandung.
• Mr. Adik then explained about the inputs and recommendations from Ms. Siliwati and Mr. Otto has
been accommodated. For Volunteer has been accommodated in Chapter IV. The input on center of
excellent is very good. The access of information has been accommodated by developing the
database within this contract. As for MONEV, the criteria are necessary to be designed. The
recommendation to include the balance score card is difficult since it requires related expert. Triple
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helix if necessary shall be included again in the Background Paper. The Government Work Plan
(RKP) has been accommodated in Chapter V. Financial Resources.
• Ms. Siliwati explained that basically that the paper has been done as expected, only requires editing
and final decision to include or not include some ideas. Triple helix shall be included.
• Mr. Otto commented on the purpose of Grand Design to boost the coordination. Is it correct? Then,
it shall be formulated.
• Finally Mr. Dewo concluded that the 2nd
Draft shall be revised based on the inputs from this
workshop. Since it will be difficult to complete the 2 documents as the output, Mr. Dewo requested
to focus on the completion of Grand Design. The next meeting with Kadin, Ministry of Trade,
Ministry of Industry, Ministry of Finance and MOFA shall be done on 17 Feb 2011 to be focus on
economic cooperation, financing and definition of “region/kawasan”. Then it will be followed by
Steering committee meeting on 21st Feb 2011.
• At the last session, Mr. Mesnan as System Analyst explained about flowchart of SSC information
system as shown in Attachment 1 and showed the position of database in the prototype of database
developed by CEACoS.
• Mr. Dewo explained that basically the Information System is related to the policy decision making,
which aims to direct to the efefctive future planning. PT. Indokoei is expected to input the data
from related Ministries and Institution (K/L) and if required shall be facilitated by letter to visit the
K/L. The Indonesian SSC is expected to be launched at National Workshop at the end of March
2011.
• Mr. Fachrurozi from Setneg expressed basically it has been comprehensive enough, but he
suggested that to fulfill the need of foreign users, the information system should be built in 2
languages: Indonesian and English. It is also requires to add sub menu “partner” not limited to
existing 5 partners in the flowchart. The covered area shall be extended to East Europe. It is also
requires to add menu of “Current SSC Issues”.
• Mr. Theodora asked whether there will be a new website of Indonesia SSC and it requires to
establish the English version of the system information to accommodate the need of promotion to
foreign countries. It is also necessary to think about the administrator and to update all information
later on. If the data is not updated periodically, then it will be less usefull.
• Mr. Iwan asked about the layer of user and recommend the report in pdf format.
• Mr. Dewo explained that temporary the Indonesia SSC IS shall be attached to BAPPENAS website.
If later it will decide to use special domain, BAPPENAS shall make the arrangement for it.
• Ms. Uzaimah explained that basically the Consultant worked based on the prototype designed by
CEACoS and therefore the language used is “bahasa”. To make the 2 version of database, it means
that we have to make 2 website. Since the period of contract is only up to end of March 2011, it is
difficult to make it into 2 languages. If it is agreed in English, then there will some words which has
been created by CEACoS such as the title “Kerjasama Selatan Selatan” shall be remained in
“bahasa”. And the data input from the K/L shall be done at maximum the data which are collected
up to the end of March 2011.
A4.3-5
• Mr. Darianto corrected that ASEAN was the name of an organization not the name of an area so it
should be South East Asian, and ASEAN shall be included as one of partner in SSC.
• Ms. Siliwanti said that it is requires to define who shall be the users of the system. If for the
planning, the output of the information system should provide answers for future planning program.
The information needed are the name of activity, time of activity, place, and budget, and it will
need not so complex information. But, if for promotion, then it will be different.
• Mr. Adik informed that for SSC we should use UN classification regarding South-South Countries
and it was necessary to be known that the consultant build the one part of website built by
CEACOS, and the current issues updating shall be the task of the administrator.
• Finally it was agreed that the Consultant shall provide the database in English version although
some words created by CEACoS shall be remained. The Consultant also should make the manual
instruction of the new information system.
• Ms. Agustin recommend to add menu “annual calendar” should be added to inform the
program/activities which will be conducted by ministry/institution.
A4.3-6
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A4.3-9
A4.3-10
A4.3-11
A4.3-12
A4.4-1
MINUTES OF MEETING
TECHNICAL TEAM MEETING
Place : Nikko Hotel, Jakarta
Time : 10.00-17.00 WIB
Date : February 16th, 2011
Minutes:
• The meeting was divided into 2 sessions, first session was discussing about economic
cooperation and second session was discussing about financing scheme.
• The meeting was chaired by Mr. Dewo Broto Joko Putranto (Director of Multilateral
Foreign Financing, Bappenas).
• On the opening speech for the meeting, Mr. Dewo brief about the progress of SSC and
activities which have been done since some of the participants such from BKPM, LPEI
and Ministry of Industry are new and related to the development of grand design and
Indonesia SSC Information System which is supported by JICA that experienced in
handling SSC; principle and policy direction of the implementation of Indonesian SSC.
The presentation materials of Mr. Dewo as shown in the Attachment of minutes.
• Then, Mr. Adik explained his presentation (see Attachment) on the preparation of Grand
Design especially on the economic cooperation.
• During the discussion session, Mr. Djunari from Ministry of Trade (MOT) commented
that basically he appreciated to the formulation of the grand design. The Indonesian
economic cooperation basically still focus on the free trade, and currently Indonesia is
facing the issue on restriction of export the CPO. Indonesia has regionally jointed with
Malaysia to counter the negative impact resulted by the campaign of the Uni-European
countries on the ecology issue that the raw material for bio-fuel (CPO) may not be
produced by planting them as the replacement of the tropical forestry area. And to counter
the low price of rubber, Indonesia jointly with Malaysia and Thailand, by using the
International Commerce rule to stabilize the price. Other cooperation such as pepper and
coconut cooperation are also established by Asia-Pacific countries, mostly on commodity
based cooperation. The financing scheme for those activities basically by State Budget
(APBN) and sometimes sponsored by the association. All of those proposals usually came
from Indonesia.
• Mr. Thalib from KADIN strengthened the discussion on economic cooperation by
explaining his experienced as the Vice Chairman of the Committee for Africa KADIN
and G-15 (see attachment 3). Indonesia has conducting many activities with Southern
countries such as in Gambia joint activities with FAO, The Farmer Agriculture Rural
Training in Madagaskar and assistance in Tanzania since 1982, cooperation in ago
business and sugar in FIJI, SME program for livestock, cooperation in agricultural sector
with Australia and Dutch, in tropical oil and vegetable fruits with Malaysia, in trade,
industry and tourism with Egypt, etc. Related to the position of Indonesia in Indian-Ocean
A4.4-2
Rim Cooperation (EIOR ARC), Indonesia has to conduct market diversification and
export development. In this stance, Indonesia also has to anticipate and develop further
about banking management and also related to Free Trade Area (FTA). It is also
necessary to strengthen about legal certainty on business in Indonesia. KADIN will
facilitate young entrepreneurs from Zimbabwe who willing to know more details about
development of textile, furniture, communications, etc. in Indonesia.
• Some Indonesian companies have been success entering the African countries such as
Indofood, Indorama, Tjiwi-Kimia, Medco, etc. Indonesia also has signed the MoU with
SASOL, a synthetic fuel producer from South Africa at the end of 2009 and also for coal
mining. A cooperation in agriculture sector has also being implemented by Gadjah Mada
University with the University of Namibia.
• The issue facing by Indonesia with those Asia Pacific countries is the limitation on
introducing the product, distance to the destination country, transportation, image, etc.
• Ms. Natalia from BKPM informed that basically currently the Government Policy is still
“in ward looking” has not being changed into “looking forward”. There is no legal based
on investment so far. The Directorate is trying to make the database on Indonesian
investment in foreign countries. Several MoU have been signed with India as one of the
aggressive countries, but still through “in ward looking”. There is no institution that has
the accurate record on the investment has been done by Indonesian Investor abroad, even
Central Bank of Indonesia (BI) is only recording the traffic of the foreign exchange, but
for what those exchanges will or have been done, BI has no such information. The
effective way to invest in the foreign countries is by conducting promotion while finding
the market potency in each country.
• Ms. Dyah from Ministry of Industry (MoI) informed that for SSC, MoI has implemented
the cooperation with Mozambique in the form of training on agro-industry and textile. A
cooperation with Palestine has been implemented since last year and a cooperation with
fertilizer plant to construct the fertilizer plant in Teheran in cooperation with PUSRI has
being implemented, since Iran has the highest gas reserve in the world. The President’s
visit on January 2010 in India resulted MoU to cooperate with India in fertilizer, gas and
coal mining.
• Mr. Medi from MoI added that cooperation with Palestine has been started from last year
for welding. Last year 12 persons and this year 10 persons shall participate in the training.
The problem with this training is due to difficulties for Palestine people to go out from
their country. In regard to technical and economic cooperation, he agreed that basically
the technical cooperation is a part of economic cooperation. For regional cooperation
such as ASEAN, the partnership program such as tariff compensation is applied.
Cooperation with Korea basically can cover 18 sectors, however, Indonesian side cannot
maximally utilize this opportunity and hence those opportunities are being utilized by
other ASEAN partners.
A4.4-3
• Cooperation with Mozambique which is initiated based on the interests on Indonesia’s
cotton product. Mozambique is the gate for many of African countries. With its potency
in cotton and Mozambique are interested to conduct import and export of cotton with
Indonesia with zero tariffs.
• D-8’s 4th
meeting in Bali has resulted 11 sectors of cooperation. Iran proposed to conduct
“ joint investment” to implement the technical cooperation among the D-8 countries.
• Mr. Dewo reminded to be careful to provide training for African countries, if necessary
franchising on specific field shall be offered. Perhaps Islamic Development bank can
facilitate in fertilizer field. In the economic cooperation, Government of Indonesia can
coordinate the cooperation, while the implementation shall be done by private sectors.
• The participant from LPPI (EXIM BANK) informed that there are some Southern
countries are categorized as high risk countries. Therefore, many Banks are refusing to
conduct financing to those countries. For instance, LC from Iran is still avoided. It can be
a consideration in conducting cooperation with those countries or how to solve those
problems. It is necessary to involve Bank of Indonesia as the regulator.
• Mr. Rendra (Directorate of Sosbud ONB – Ministry of Foreign Affairs) informed that on
Feb 10-12, 2011, MOFA has implementing a meeting on the economic cooperation
among the developing countries, attended by concerned institutions, and Mr. Adik is
invited as the resource person. And it is agreed that Directorate of PPIH and PELH shall
lead for the economic cooperation issue. Some inputs have been delivered to Mr. Adik on
this issue.
• Directorate Africa of MOFA has special budget for initiative program for Africa 2011
and has informed it to the related stakeholders. The market access to African countries
which has the big market such as Nigeria is quite challenging for Indonesia, but
admission charge to enter Nigeria is quite big around 40%. Currently 10 investors who
export their product through Benin and forwarded from Benin to its neighboring countries
including Nigeria.
• There is no institution which has sufficient data on export and investment opportunity. In
regard to coordination with private sectors, GoI has been acted as the facilitators in order
the private sectors may enter to the global market. However, some private companies
rejected to provide required information to GoI, such the company who interests to
entering West Africa countries, especially related to CPO.
• Mr. Dewo advised to utilize the existing forum and institutions to collect the information
from private sector, however GoI cannot force the private sector to share their
information.
• Mr. Thalib informed that GSTP can be utilized. GoI through Directorate of Legal
Protection can assist the SME to make the contract. It is the time that GoI facilitating the
private sectors especially on the legal protection for the SME. If necessary, the regional
association can be used for self protection.
A4.4-4
• Ms. Dinur (JICA) explained that JICA response positively to the GoI’s initiative related
to the Indonesian International Cooperation modality. At first, basic of ODA cooperation
of JAPAN is also economic cooperation, however now currently Japan is focusing on
technical cooperation. JICA acts as the facilitator to improve the Indonesian strategy and
policy. Indonesian cooperation still has to be based on the global principle such as
solidarity, trust, sincere, appreciation, acceptability and self reliance, same as when
Indonesia as the beneficiary country. Indonesia has to be careful on the economic
cooperation, since for those developing countries, it has to be started from the good
attitude, slowly but sustainable. Second, the consensus between KADIN and related
institutions should be establish carefully and accepted by the whole institutions. Even, at
initially the ODA is also fragmented, some in MOFA, METI, Environment Board, MOA,
etc. All of the related institutions have to same perception and have to have specific
pattern to bring the Indonesian flag in foreign countries. Third, there should be a unique
or specific colour of Indonesian cooperation to be accepted in global market. There are
some accesses that have been established, such as G15, G0-20, etc. Therefore, the
cooperation must not be implemented by a single institution only. Fourth, Government of
Japan also coordinates the public and private sectors. So, there are government flow,
semi government flow and private flow. Japan has the ODA Task Force in Embassy,
country by country. Indonesia FDI also has to be promoted, whether EXIM Bank can
provide loan to other developing countries, such as when Indonesia develop Nickel or
Krakatau Steel Plants financed by Japan’s Exim Bank. The fifth: In service sector, JICA
Indonesia provides road development training in cooperation with Ministry of Public
Works to assist Timor Leste. Technical cooperation can flow at any stage and can be
flexible to enter the economic cooperation. For instance, the Micro Finance program for
African countries is facing the bottle neck, Indonesia has not been ready yet to further
support the program. If it is not being followed up by GoI, Malaysia will enter in this
sector. It can be the competitive advantage for Indonesia in the future. Basically this
forum is moving forward faster than expected by JICA. Therefore, it is expected that
Indonesia will be trusted by develop countries. Building a trust can be done through
triangular cooperation. North countries will not make cooperation without any trust,
therefore, it can be advantage for Indonesia to develop trust through triangular
cooperation, as the complementary of North South and South-South Cooperation.
• LPPI informed that basically that Bank is allowed to finance resident or Liability
Company in foreign countries. For example, project with WIKA India and railway in
Bangladesh. Basically if the project is viable, may be financed.
• Session II started at 2 PM and opened and chaired by Mr. Dewo Broto as the Chairman of
Technical Team, repeated his morning presentation and then followed by presentation on
Financing, Scheme and Flagship Program as shown in the Attachment 4.
• Mr. Andy from Ministry of Agriculture (MOA) informed that in previous meeting he
informed that MOA will allocate the assistance in the form of dispatching expert and
training under SSC in 2011 but it seems not approved by MOF. The problem in SSC is
A4.4-5
usually unclear. For hand tractor assistance, always on and off. Related to the flagship
program, it is the program which is sellable by MOA.
• Mr. Dewo explained that if the budget is not approved by MOF, it should be checked
what is the reason behind it. It is necessary to apply performance based budget right now.
Currently BAPPENAS is preparing the RKP 2012, and expected to be completed by
March 2011. So, now is a good timing to propose KSS related program. For foreign
funding program, JICA has given a green light for triangular cooperation such for micro
finance program. For private sector, perhaps it can be jointly conducted under CSR
program as a part of promotion tools for private sectors.
• Mr. Fachrul Rozi (Setneg) informed that usually MOF will request the evident, and will
consider the task and function of the authority to propose such program. All proposed
program by Ministry/Institutions related to SSC programs should be complied in one
basket, since the activity for SSC requires a lot of budget and hence will be a burden to
the Ministry/Institution. When a ministry propose budget plan to Ministry of Finance, it
should be included in RKP. The problem that always faced by the implementing agency
is due to some anticipated program should be done in the middle of FY and hence need
the revision of APBN. Sometimes, the moment to revise it is not matching with the
process period of APBNP. General budgeting management usually customizes, and hence
it is necessary to create the specific financing mechanism for SSC. In regard to the
flagship program, it is necessary to set the criteria or indicator and each
ministry/institution shall make their own list on flagship programs, and for the quick win
shall be evaluated and decided by Steering Committee.
• Mr. Ade (Bappenas) informed that basically the SSC related budget in APBN is only
around 18%. Therefore, the regional forums and develop countries are expected to jointly
financing Indonesia’s SSC activities. The existing regulations regulate only the role of
Indonesia as the beneficiary country, and not as donor country. As it has been stipulated
in the RPJM, then it is important to formulate the new regulation to facilitate role of
Indonesia as donor country.
• Ms. Zurlaini, Bureau of Planning of Ministry of Industry explained that the role of
Indonesia as the donor in SSC is the new challenges, since basically it is not easy to be
accountable in implementing cooperation. Related to budgeting, it is necessary to provide
its legal base. And it should be clear between the social or technical assistance. If
financing by APBN is difficult, it may be financed by business (private), by facilitating
the potential product to the south-south countries. For instance, in rattan industry, GoI
must provide facilitation to increase the export to the south-south countries. It is
recommended that BAPPENAS or MOF coordinate the SSC program.
• Mr. Dewo explained that basically the legal basis, quick win and institutional framework
is required to be accountable to be financed by APBN. In regard to financing, it is also
recommended to involve Exim Bank. The role of Coordination Team is during the
transition period.
A4.4-6
• Mr. M. Thohir (Ministry of Social): He proposed TCTP for Vocational Program in Feb
2010 for the implementation period of 2011 through Setneg and Bappenas. But up to
present, no information whether the proposal agreed by JICA or not.
• Ms. Dinur (JICA): The proposal of NVRC in Cibinong is not passing the screening. JICA
has the following step for each program: grant project, technical cooperation, exit project.
For NVRC, since it has been more than 10 years (2 terms), shall be exit. Usually only one
term unless there is special condition. It is different with EEPIS (polytechnic) in
Surabaya can be extended up to 3 terms due to special requests from those beneficiary
countries. Usually JICA program is linked to the similar program of JICA branch office
in the beneficiary countries. JICA budget to Indonesia is tended to decrease, and mostly
allocated to African countries. And hence the program is linked to the related sector in the
beneficiary country. Triangular Cooperation of Indonesia with JICA shall refer to the
bluebook, although it is difficult since the advantage of SSC program is not only for
Indonesia. Currently, the program is attached to the program in Setneg. From JICA side,
as the requirement of code of conduct of JICA, there should be the strong willingness
from Indonesia and blended between the activities which financed by Triangular
Cooperation and only by Indonesia itself.
• Mr. Dewo: The planning of SSC should be made holistically. Quick win is the SSC
saleable activity with its comparative advantages which viable to be financed by Donor,
may be in term of value added or flagship activities. For instance, artificial insemination,
which is really mastering by Indonesia and can be adopted by south-south cooperation.
The new proposed activity shall be listed in the white-book.
• Mr. Adik Bantarso: Anything to be proposed for the south-south countries should be
something that might be reminded in 100 years. We are now preparing the plans to be
done by 2014 to be taken off in 2015. The flagship program shall be clear in which
context. We have facilities as the centers of excellent, but how to revitalize them. The
flagship programs in economic cooperation mostly are the product based, not program
based. At this moment RKP has to be completed by March 2011, which means we have
remaining less than 2 months to have the consensus.
• For the flagship program, MOA has developed training program in Tanzania financed by
the Farmers association and followed by training program financed by JICA. In the
training, perhaps we can promote the Indonesian farm machinery and equipment such as
hand tractor.
• Ms. Zurlaini: In proposing program for the beneficiary countries, it is better to make an
inventory on the needs of the beneficiary countries.
• Mr. Rendra: There was an activity related to the inventory of the needs of the south-south
countries in MOFA, but has not been compiled yet.
• Mr. Fahrur Rozi: There is an issue related to the recording of grant accounting, related to
the disbursement of budget directly to the implementing agency. In fact, it is not correct
according to the MOF. Any grant has to be recorded. The procedure has to be clear. In
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regard to the proposal from Ministry of Social is still necessary for Palestine and
regarding center in Tanzania is nor function due to budget availability.
• Ms. Theodora (BKKBN) stated that for financing mechanism, BKKBN may allocate
facilitating budget based on 4 flagship programs in BKKBN and for south-south countries.
However, since there is no clear legal based, it is difficult to maintain such budget. TCTP
program financed by JICA has been terminated since last year. The demand is still high,
but it is difficult to find the donor. Today, there is a letter from OENB MOFA requested
BKKBN to prepare proposal to be addressed to Perez Guerro Trust Fund. Last year
Setneg also requested mapping, but no result so far. It seems that for SSC activity, it is
recommended that GOI has a separate SSC secretariat to manage all activities.
• Ms. Dinur (JICA): The construction of the agriculture center in Tanzania is purely
financed by Indonesian Farmers Foundation. Due to its potency, then JICA supported
them by conducting training. Due to Indonesia’s GDP perhaps still cannot support it the
program compulsorily, however, Indonesia may conduct its trial in assisting them as a
Donor. Therefore, the proposed program should be an eye catching program, and should
be decided in which forum the assistance shall be landed: ASEAN or OKI (Palestine or
Afghanistan or Timor Leste, etc). Indonesia has stipulated 1,000 pledging for Palestine by
2013, and up to present still around 126 programs. So, perhaps it can be used to
strengthen it, while the sustainability of the program also has to be maintained. It doesn’t
have to stipulate so many programs at the first five years.
• Based on the discussion, Mr. Dewo finally decided the candidate for quick win:
- Revitalization of Agriculture Training Center in Tanzania and Gambia
- Family Planning Tablet for Man
- For Palestine: Technical Cooperation with NAM Center
- Herbal Medicine
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Presentation Materials of Mr. Dewo Broto Joko Putranto
(Director of Multilateral Foreign Funding, Bappenas)
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Presentation Materials of Mr. Adik Bantarso (SSC Advisor)
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Presentation Materials of Mr. Thalib Puspokusumo (KADIN)