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  • Indonesia CDCS FINAL Version

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    Deni Shidqi Khaerudini
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    The U.S. Agency for International Development (USAID) works as part of the U.S. Government to advance development priorities of mutual concern to Indonesia and the United States. This Country Development Cooperation Strategy (CDCS) outlines our engagement with Indonesia over the next five years in the context of its democratic consolidation, growing economy, rising global leadership and remaining development challenges. With a population of 240 million and gross domestic product (GDP) of $1 trillion, Indonesia is a major economic partner for the U.S. Yet, it is still home to 40 million people living below the international poverty line of $1.25 a day (the sixth highest figure of extreme poverty in the world). It is also the world’s largest Muslim‐majority democracy, the world’s third largest carbon emitter and steward of the world’s second greatest biodiversity. Indonesia’s success matters greatly to the United States. The engagement in this CDCS supports the U.S.‐Indonesia Comprehensive Partnership, signed by Presidents Obama and Yudhoyono in 2010, to broaden, deepen, and elevate bilateral relations between our two countries.

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    The U.S. Agency for International Development (USAID) works as part of the U.S. Government to advance development priorities of mutual concern to Indonesia and the United States. This Country Development Cooperation Strategy (CDCS) outlines our engagement with Indonesia over the next five years in the context of its democratic consolidation, growing economy, rising global leadership and remaining development challenges. With a population of 240 million and gross domestic product (GDP) of $1 trillion, Indonesia is a major economic partner for the U.S. Yet, it is still home to 40 million people living below the international poverty line of $1.25 a day (the sixth highest figure of extreme poverty in the world). It is also the world’s largest Muslim‐majority democracy, the world’s third largest carbon emitter and steward of the world’s second greatest biodiversity. Indonesia’s success matters greatly to the United States. The engagement in this CDCS supports the U.S.‐Indonesia Comprehensive Partnership, signed by Presidents Obama and Yudhoyono in 2010, to broaden, deepen, and elevate bilateral relations between our two countries.

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    22 tayangan53 halaman

    Indonesia CDCS FINAL Version

    Diunggah oleh

    Deni Shidqi Khaerudini
    The U.S. Agency for International Development (USAID) works as part of the U.S. Government to advance development priorities of mutual concern to Indonesia and the United States. This Country Development Cooperation Strategy (CDCS) outlines our engagement with Indonesia over the next five years in the context of its democratic consolidation, growing economy, rising global leadership and remaining development challenges. With a population of 240 million and gross domestic product (GDP) of $1 trillion, Indonesia is a major economic partner for the U.S. Yet, it is still home to 40 million people living below the international poverty line of $1.25 a day (the sixth highest figure of extreme poverty in the world). It is also the world’s largest Muslim‐majority democracy, the world’s third largest carbon emitter and steward of the world’s second greatest biodiversity. Indonesia’s success matters greatly to the United States. The engagement in this CDCS supports the U.S.‐Indonesia Comprehensive Partnership, signed by Presidents Obama and Yudhoyono in 2010, to broaden, deepen, and elevate bilateral relations between our two countries.

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    dari 53

    Investing

    in Indonesia:
    A stronger Indonesia advancing national and global development

    USAID STRATEGY FOR INDONESIA 2014 2018


    InvestinginIndonesia
    i

    UnitedStatesAgencyforInternationalDevelopment
    CountryDevelopmentCooperationStrategy
    October2013

    CoverPhoto:BiologystudentsworkonanassignmentatthenewstateoftheartTeacherTrainingSchoolatUniversityofSyiah
    KualainAceh,Indonesia.USAIDprovidedfinancialsupporttobuildandfurnishthenewfacilitytoincreasethenumberof
    trainedteachersinAcehprovince.

    PhotoCredit:DanumurthiMahendra,USAID/Indonesia

    InvestinginIndonesia
    ii

    TABLEOFCONTENTS

    EXECUTIVE SUMMARY .................................................................................................................................................................. V


    ABBREVIATIONS AND ACRONYMS .......................................................................................................................................VII
    DEVELOPMENT CONTEXT, CHALLENGES, AND OPPORTUNITIES ............................................................................. 9
    THEOTHERINDONESIA:HEALTH,EDUCATION,ANDENVIRONMENT .............................................................................................. 9
    THEADVANCINGINDONESIA ............................................................................................................................................................. 9
    U.S.INDONESIAPARTNERSHIP ...................................................................................................................................................... 10
    FOCUS ............................................................................................................................................................................................. 10
    GEOGRAPHIC TARGETING..................................................................................................................................................... 11
    DEVELOPMENT HYPOTHESIS ................................................................................................................................................... 12
    DEVELOPMENT OBJECTIVE 1: DEMOCRATIC GOVERNANCE STRENGTHENED .................................................. 14
    INTERMEDIATE RESULT (IR) 1.1: COMMUNITY OF ACCOUNTABILITY IMPROVED .............................................. 16
    INTERMEDIATE RESULT 1.2: CIVIC PARTICIPATION ENHANCED .............................................................................. 18
    INTERMEDIATE RESULT 1.3: PROTECTION OF CITIZEN RIGHTS PROMOTED ....................................................... 19
    INTERMEDIATE RESULT 1.4: SUSTAINABLE DEVELOPMENT IN TARGETED DISTRICTS IN EASTERN
    INDONESIA ENHANCED .......................................................................................................................................................... 20
    DEVELOPMENT OBJECTIVE 2: ESSENTIAL HUMAN SERVICES FOR THE POOREST AND MOST VULNERABLE
    IMPROVED ....................................................................................................................................................................................... 22
    INTERMEDIATE RESULT 2.1: SERVICES TO REDUCE PREVENTABLE DEATHS PARTICULARLY AMONG
    WOMEN AND CHILDREN IMPROVED .................................................................................................................................. 24
    INTERMEDIATE RESULT 2.2: QUALITY, RELEVANCE, AND ACCESS TO TARGETED EDUCATION SUB-
    SECTORS IMPROVED ................................................................................................................................................................ 26
    INTERMEDIATE RESULT 2.3: GOVERNANCE OF ESSENTIAL SERVICES AT THE LOCAL LEVEL
    STRENGTHENED........................................................................................................................................................................ 27
    DEVELOPMENT OBJECTIVE 3: GLOBAL DEVELOPMENT PRIORITIES OF MUTUAL INTEREST ADVANCED . 29
    INTERMEDIATE RESULT 3.1: CONTROL OF INFECTIOUS DISEASES OF REGIONAL AND GLOBAL
    IMPORTANCE IMPROVED ........................................................................................................................................................ 30
    INTERMEDIATE RESULT 3.2: MARINE AND TERRESTRIAL BIODIVERSITY CONSERVED ...................................... 31
    INTERMEDIATE RESULT 3.3: CLIMATE CHANGE MITIGATION AND RESILIENCE TO SUPPORT A GREEN
    ECONOMY STRENGTHENED .................................................................................................................................................. 33
    INTERMEDIATE RESULT 3.4: GOI SOUTH-SOUTH AND TRIANGULAR COOPERATION STRENGTHENED .... 35
    DEVELOPMENT OBJECTIVE 4: COLLABORATIVE ACHIEVEMENT IN SCIENCE, TECHNOLOGY, AND
    INNOVATION INCREASED ........................................................................................................................................................ 37
    INTERMEDIATE RESULT 4.1: ACADEMIC CAPACITY AND SCIENTIFIC RESEARCH STRENGTHENED .............. 39
    INTERMEDIATE RESULT 4.2: EVIDENCE-BASED DECISION-MAKING ENHANCED ................................................ 41
    INTERMEDIATE RESULT 4.3: INNOVATIVE APPROACHES TO DEVELOPMENT UTILIZED ..................................... 42

    InvestinginIndonesia
    iii

    CRITICAL ASSUMPTIONS AND RISKS .................................................................................................................................... 45


    MONITORING, EVALUATION AND LEARNING ................................................................................................................ 46
    USAID POLICY FRAMEWORK AND STRATEGIES .............................................................................................................. 47
    ANNEX 1: REFERENCES CITED................................................................................................................................................. 48
    ANNEX 2: GEOGRAPHIC TARGETING .................................................................................................................................. 51

    InvestinginIndonesia
    iv

    EXECUTIVESUMMARY

    TheU.S.AgencyforInternationalDevelopment(USAID)worksaspartoftheU.S.Governmentto
    advancedevelopmentprioritiesofmutualconcerntoIndonesiaandtheUnitedStates.ThisCountry
    DevelopmentCooperationStrategy(CDCS)outlinesourengagementwithIndonesiaoverthenextfive
    yearsinthecontextofitsdemocraticconsolidation,growingeconomy,risinggloballeadershipand
    remainingdevelopmentchallenges.Withapopulationof240millionandgrossdomesticproduct(GDP)
    of$1trillion,IndonesiaisamajoreconomicpartnerfortheU.S.Yet,itisstillhometo40millionpeople
    livingbelowtheinternationalpovertylineof$1.25aday(thesixthhighestfigureofextremepovertyin
    theworld).ItisalsotheworldslargestMuslimmajoritydemocracy,theworldsthirdlargestcarbon
    emitterandstewardoftheworldssecondgreatestbiodiversity.Indonesiassuccessmattersgreatlyto
    theUnitedStates.TheengagementinthisCDCSsupportstheU.S.IndonesiaComprehensive
    Partnership,signedbyPresidentsObamaandYudhoyonoin2010,tobroaden,deepen,andelevate
    bilateralrelationsbetweenourtwocountries.

    Indonesiahasundergoneatremendoustransformationinthepast50years.DuringUSAIDsearly
    period,thenationsufferedwidespreadpoverty,authoritarianrule,minimalinfrastructure,andother
    challenges.Today,Indonesiaisarisingeconomicpower,vibrantdemocracy,leaderoftheAssociation
    ofSoutheastAsianNations(ASEAN)andAsiaPacificEconomicCooperation(APEC),andmemberofthe
    G20.Indonesiasstrongeconomicgrowthcontributestoanaverageannualpovertyreductionrateof
    almost6percentinthepastfiveyears(SEADI2013),whilenotyeteradicatingextremepoverty.

    AChangingPartnership

    WhenIndonesianslookforU.S.support,ourCDCSconsultationsshowed,itisnotaboutmoney.They
    seektechnicalassistance,capacitybuilding,technology,andideasthatfosterinnovationandreform.
    Thedaysofadonorrelationshipareover.Wearepartnersandcoinvestorsindevelopment.

    Indonesiasdemocraticandeconomicadvancementoverthepast15yearshasledtoitsemergenceasa
    valuedregionalleaderandglobalvoice.Indonesiasdevelopmentchallengesincreasinglytranscendthe
    archipelagoandimpacttheregionandtheworld,notablyintheenvironmentandhealthsectors.While
    economicgrowthhasexceeded6%inrecentyears,thepoorandmostvulnerablenearlyhalfthe
    populationstilllivesonlessthan$2perday.Decentralizationofgovernment,generallyapositive
    democraticdevelopment,hasnotevenedaccesstobasicserviceacrossthearchipelago.Indonesiastill
    struggleswithfragileinstitutions,endemiccorruption,andintolerance,allprioritiesforourpartnership.
    Indonesiaisagrowingglobalpresencewithincreasingglobalclout,buthasyettofullyrealizethe
    positivebenefitsofdemocratizationandeconomicgrowth.RecognizingPresidentObamasvisionof
    workingwiththeinternationalcommunitytoeradicateextremepovertyoverthenexttwodecades,
    Indonesiawillcontinuetobeakeypartnerinrealizingthatgoal.ThisCDCSseekstoreorientUSAID
    strategicengagementinIndonesiaandthereforeprovidesanopportunitytoaddressextremepovertyin
    awaythatbothsupportsthePresidentsvisionandiscontextualizedtoUSAIDspartnershipin
    Indonesia.

    InvestinginIndonesia
    v

    OurStrategicEngagement

    AstrongerIndonesiaadvancingnationalandglobaldevelopment,ourgoalforthisstrategy,reflects
    ourjointeffortstoaddressbothinternaldevelopmentgapsandexternaldevelopmentopportunities.
    USAIDsinvestmentoverthenextfiveyearswillfocusonfourDevelopmentObjectives:

    1.Democraticgovernancestrengthened
    2.Essentialhumanservicesforthepoorestandmostvulnerableimproved
    3.Globaldevelopmentprioritiesofmutualinterestadvanced
    4.Collaborativeachievementinscience,technology,andinnovationincreased

    WhilethefirsttwoDevelopmentObjectivesfocusoninternaldevelopmentconcerns,theothersare
    moreoutwardlooking,includingworkingwithIndonesiainothercountries.Acrossourstrategy,USAID
    willbeacoinvestoralongwithIndonesianpublicandprivateinstitutions.Wewillbuildstrong
    relationshipswiththeGovernmentofIndonesia,civilsocietyandtheprivatesector,andworkclosely
    acrosstheU.S.Embassy,topromoteastrong,democraticIndonesia.

    InvestinginIndonesia
    vi

    ABBREVIATIONSANDACRONYMS

    ADB AsianDevelopmentBank HIV/AIDS HumanImmunodeficiencyVirus/


    AIPI IndonesianAcademyofSciences AcquiredImmuneDeficiency
    APEC AsianPacificEconomicCooperation Syndrome
    ASEAN AssociationofSoutheastAsianNations IGs InspectorateGenerals
    AusAID AustralianAgencyforInternational ICASS InternationalCooperative
    Development AdministrativeSupportServices
    BAKN StateFinanceAccountability INCLE InternationalNarcoticsControland
    Committee LawEnforcement
    BAPPENAS NationalPlanningAgency INP IndonesianNationalPolice
    BNPB IndonesiaDisasterManagement IR IntermediateResults
    Agency ISF IndonesianScienceFund
    BPKP DevelopmentandFinancial IUCN InternationalUnionforConservation
    SupervisoryBoard ofNature
    BPK AuditBoardoftheRepublicof JICA JapaneseInternationalCooperation
    Indonesia Agency
    BRIC Brazil,Russia,India,andChina KADIN IndonesianChamberofCommerce
    CDCS CountryDevelopmentCooperation andIndustry
    Strategy KIN NationalInnovationCouncil
    CIDA CanadianInternationalDevelopment KIP PublicInformationCommission
    Agency KPK CorruptionEradicationCommission
    CSO CivilSocietyOrganization LF lymphaticfilariasis
    DIKTI DirectorateGeneralofHigher LGBT Lesbian,Gay,Bisexual,and
    Education Transgender
    DO DevelopmentObjective M&E MonitoringandEvaluating
    DoD DepartmentofDefense MCC MillenniumChallengeCorporation
    DOJ DepartmentofJustice MCH MaternalandChildHealth
    DRG Democracy,HumanRights,and MDGs MillenniumDevelopmentalGoals
    Governance MDRTB MultiDrugResistantTB
    DRN NationalResearchCouncil MenkoKesra CoordinatingMinistryforSocial
    ECLEDS EnhancingCapacityinLowEmissions Welfare
    DevelopmentStrategies MICs MiddleIncomeCountries
    EU EuropeanUnion MMAF MinistryofMarineAffairsand
    FAF ForeignAssistanceFramework Fisheries
    FY FiscalYear MMR MaternalMortalityRate
    FSN ForeignServiceNational MOF MinistryofForestry
    GBV GenderbasedViolence MOEC MinistryofEducationandCulture
    GCC GlobalClimateChange MOH MinistryofHealth
    GDP GrossDomesticProduct MOHA MinistryofHomeAffairs
    GF(GFATM) GlobalFundtoFightAIDS, MORA MinistryofReligiousAffairs
    TuberculosisandMalaria MP3EI MasterplanforAccelerationand
    GHG GreenhouseGas ExpansionofIndonesia'sEconomic
    GHI GlobalHealthInitiative Development
    GIS GeographicInformationSystems MSM Menwhohavesexwithmen
    GOI GovernmentofIndonesia NGO NonGovernmentOrganizations
    GRIFN GlobalResearchandInnovation NTD NeglectedTropicalDiseases
    FellowshipNetwork ODA OverseasDevelopmentAssistance
    HELM HigherEducationLeadershipand ODHACA OverseasHumanitarian,Disaster
    Management Assistance,andCivicAid
    ODC/USARPAC OfficeofDefenseCooperation/U.S.
    ArmyPacificCommand

    InvestinginIndonesia
    vii

    OE OperatingExpenses S&T ScienceandTechnology


    OECD OrganisationforEconomicCo SMS ShortMessageServices
    operationandDevelopment SSTC SouthSouthandTriangular
    OFDA OfficeofU.S.ForeignDisaster Cooperation
    Assistance TA TechnicalAssistance
    ORI OmbudsmanoftheRepublicof TB Tuberculosis
    Indonesia UHC UniversalHealthCoverage
    PASA ParticipatingAgencyService UN UnitedNations
    Agreement UNDP UnitedNationsDevelopmentProgram
    PEER PartnershipsforEnhanced UNESCO UnitedNationsEducational,Scientific,
    EngagementinResearch andCulturalOrganization
    PNPM NationalProgramforEmpowerment UNICEF UnitedNationsChildrensFund
    ofCommunities UP UniversityPartnerships
    PPP PublicPrivatePartnership USAID UnitedStatesAgencyforInternational
    R&D ResearchandDevelopment Development
    REDD ReduceEmissionsfromDeforestation USDH U.S.DirectHire
    andForestDegradation USG UnitedStatesGovernment
    RF ResultFramework WASH Water,Sanitation,andHygiene
    RISTEK StateMinistryofResearchand WGI WorldwideGovernanceIndicators
    Technology WHO WorldHealthOrganization

    InvestinginIndonesia
    viii

    DEVELOPMENTCONTEXT,CHALLENGES,ANDOPPORTUNITIES

    Indonesiaistheworld'smostpopulousMuslimmajoritycountryandthirdlargestdemocracy.Itis
    immenseanddiversewith240millionpeoplespeakinghundredsoflanguagesand17,000islands
    spanningthreetimezones.Indonesiaisaregionalandglobalplayer,havingexperiencedaremarkable
    democratictransformationandhigheconomicgrowthoverthelasttwodecades.Yetitstillstruggles
    withfragileinstitutions,endemiccorruption,terrorism,andrisingreligiousandethnicintolerance.
    Casesofviolencebasedonreligionrosefrom299in2011to371in2012(Aritonang,2012).Withthe
    world'ssecondgreatestenvironmentalbiodiversityandthirdhighestgreenhousegasemissions,
    Indonesiaisaglobalenvironmentsuperpower.Althoughitseconomyisgrowingatover6%peryear
    (WorldBank,2013a)andispoisedtoenterthetop10largesteconomiesintheworldinthecoming
    decades(Obermanetal,2012),thereisrisingincomeinequality:20%oftherichestIndonesianshold
    80%ofthewealthandnearlyhalfofthepopulationlivesonlessthan$2perday(WorldBank,2013a).
    InthesetwoIndonesias,oneisagrowingglobalpresencewithincreasingclout,whiletheotherhas
    yettofullyrealizethepositivebenefitsofdemocratizationandeconomicgrowth.Inorderfor
    Indonesia'sstrongeconomicgrowthtobemorebroadbased,inclusive,andequitable,investmentsin
    socialandhumandevelopmentarenecessary;throughtargetededucationandessentialskillstraining,
    localinstitutionalcapacitybuilding,andtheimprovementofhealthcarefacilitiesandservices,thesocio
    economicsymptomsofextremepovertycanbeaddressedandenablethepoorestofthepoorto
    participatemorefullyinagrowingeconomy.

    THEOTHERINDONESIA:HEALTH,EDUCATION,ANDENVIRONMENT
    Inhealth,education,andenvironment,Indonesiastillfacessignificantchallenges.Thequalityofhealth
    careservicesislaggingandhighratesofinfectiousdiseaseremain.Tuberculosis(TB)killsapproximately
    65,000Indonesiansannually(WHO,2013).Indonesiasmaternalmortalityratioisamongthehighestin
    SoutheastAsiaanditisunlikelythatIndonesiawillreachitsMillenniumDevelopmentGoals(MDG)
    targetsformaternalandchildhealth.Therearesignificantdisparitiesinaccesstohighereducation,
    basedonincomelevels,andaccesstosecondaryandhighereducationremainslowwhencomparedto
    countriesintheregionsuchasChina,Malaysia,andThailand(WorldBank,2012a).Genderinequality
    persistsandwomencontinuetofacediscriminationinaccesstoeducation,tendtoholdlesssecurejobs
    thanmenwithfewersocialbenefits,havefewereconomicassets,andparticipatelessingovernment
    andprivatesectorleadershiproles.Rapidenvironmentaldegradationandahighincidenceofnatural
    disastersputIndonesiaatahighriskforclimatechangeimpacts.DeforestationinIndonesiaproduces
    80%ofthatcountrysannualcarbonemissions,placingitamongtheworldstopgreenhousegas
    emitters.Indonesiaisvulnerabletosevereclimaterelatedstressessuchasfloods,fires,droughtsand
    storms,whichaccountfor80%ofnaturaldisasters.TheAsianDevelopmentBankestimatesthatclimate
    changeimpactswillcostbetween2.57%ofGDPby2100(2011).

    THEADVANCINGINDONESIA
    Indonesiaisaddressingitsdomesticchallengeswhileplayinganimportantroleontheworldstage.
    BesidesbeingamemberoftheG20,IndonesiaischairofAsiaPacificEconomicCooperation(APEC)in
    2013,chairoftheGlobalFundtoFightAIDS,Tuberculosis,andMalaria(GF),andcochairoftheHigh
    LevelPanelonthePost2015DevelopmentAgenda.Attheseandotherinternationalforums,Indonesia
    isestablishingitselfasaleaderintacklingglobaldevelopmentchallengesaffectingitsprosperity.Asthe
    16thlargesteconomyintheworld,IndonesiaisagrowingU.S.partnerandobserversprojectthecountry
    hasthepotentialtobetheseventhlargestpartnerby2030(Obermanetal,2012).Infact,Indonesiais

    InvestinginIndonesia 9
    alreadyscalingupitsownforeignassistance.SpecificallyarticulatedinIndonesiasNational
    DevelopmentPlanisthegoalforIndonesiatobecomeselfreliant,advanced,just,andprosperousby
    2025.Additionally,Indonesiawantstoachieveimprovedeconomiccompetitivenessofnatural
    resourcesandupgradedhumanresourcesandincreasingcapabilitytomasterscienceandtechnology
    by2020(BAPPENAS,2007,pg.33).USAIDsworkinIndonesiacomplimentsIndonesiasgrowing
    leadershipinaddressingglobaldevelopmentchallenges.

    U.S.INDONESIAPARTNERSHIP
    AsIndonesiachanges,somusttheU.S.relationshipwithIndonesia.U.S.Government(USG)investment
    isvitaltohelpIndonesiaovercomeserious,lingeringdevelopmentgaps,andpositionitselftoplaya
    credible,responsibleroleonissuesofregionalandglobalimportance.Consequently,thisCDCS
    representsahybridapproachwithaninwardandoutwardIndonesiafocus.

    U.S.strategicinterestinIndonesia'ssuccessisrecognizedbytheU.S.IndonesiaComprehensive
    Partnership,whichisalongtermcommitmentbyPresidentsObamaandYudhoyonotobroaden,
    deepen,andelevatebilateralrelationsbetweentheUnitedStatesandIndonesia.Cooperationunder
    theComprehensivePartnershipisoutlinedinaPlanofActionconsistingofthreepillars:politicaland
    security;economicanddevelopment;andsociocultural,education,science,andtechnology
    cooperation.Thepartnershiprecognizestheglobalsignificanceofenhancedcooperation,the
    tremendouspossibilitiesforeconomicanddevelopmentcooperation,andtheimportanceoffostering
    exchangesandmutualunderstandingbetweentwooftheworldsmostdiversenations.Ithasa
    dynamic,allencompassingagendatoincreasecollaboration.

    FOCUS
    Inpreparationforthisstrategy,consultationswereheldbroadlyacrossthearchipelagowithovera
    thousandmembersofgovernment,academia,civilsociety,developmentpartners,andtheprivate
    sector,alongwithnumerousassessments.Ourconsultationsrevealedseveralcriticalfactors:(1)basic
    educationisnolongerwidelyperceivedasacrucialneedforourinvestment;(2)transformational
    impactinagricultureandeconomicgrowthisnotpossiblewiththeresourcesavailablenorarethese
    sectorsconsideredahighpriorityforourengagementwiththeGovernmentofIndonesia(GOI),except
    withrespecttoenvironmentalsustainability;and(3)investmentsinelectionsandlegislativeand
    politicalpartystrengtheningarenotcriticalafterthe2014elections.Itisthereforeinourinterestto
    exitareassuchasbasiceducation,agriculture,economicpolicy,parliament,politicalparties,and
    elections(followingthosein2014)andshifttonewareassuchasscience,technologyandinnovation,
    andpartnershipwiththeGOIonselectedregional/globalinterests,includingSouthSouthandTriangular
    Cooperation.

    OurresearchandconsultationswithstakeholdersandtheIndonesiangovernmentunderscorethat
    USAIDishighlysoughtafterfortechnicalassistanceandcapacitybuilding,increasinglyatthelocallevel.
    Theproposed,integratedfourDevelopmentObjectives(DOs)capitalizeonourexperienceand
    relationshipswithlocalstakeholders,whereweeffectivelycomplementtheworkofotherinternational
    partners,andwhereourcomparativeadvantagewilldeliverimpact.Asweemphasizeequalpartnership
    inallourcollaborationwithIndonesia,wewillincreasinglyseektocofinanceprogramswiththeGOI.
    USAIDalsohasacompetitiveadvantageintheabilitytopartnerwiththeprivatesectorandother
    donors,whichleadstotheamplificationofresourcesandacceleratedimpact.Wewillincreasinglyseek
    innovativewaystotapintoprivatesectorresourcesandideastofindsolutionstodevelopment
    challenges.Thiswillaffecthowweplan,design,monitor,evaluate,andexecutefutureprograms.

    InvestinginIndonesia 10

    TheMissionwillalsoincreasinglypromotegenderequalityandtheempowermentofwomenandgirls
    acrosstheportfolio.ThedatainIndonesiaconcerningthestatusofwomenandgirlsismixed.
    AccordingtotheOECDs2012SocialInstitutionsandGenderIndexreport,Indonesiaranks32outof86
    countriesintacklingsocialinstitutionsthatdiscriminateagainstwomenandgirls,animprovementfrom
    2009whenitranked55outof102countries.TheGOIhasratifiedtheConventionoftheEliminationof
    AllFormsofDiscriminationAgainstWomen(buthasnotyetratifiedtheOptionalProtocol),andhas
    stateditscommitmenttopursuinggenderequalityandempowermentofwomeninvariousnational
    plans.However,theimplementationoftheseplansisunderresourced.Therehavebeenanincreasing
    numberoflocalregulationsinIndonesiathatdirectlydiscriminateagainstwomen,especiallytheir
    freedomofexpressionandassociation.Further,genderbasedviolencecontinuestobeawidespread
    problem.Evidenceofgrowingintolerancetoethnicandreligiousminorities,andtowardLesbian,Gay,
    Bisexual,andTransgender(LGBT)people,arealsoofgreatconcern(Jaetal,2012).Wewillcontinueto
    expandourknowledgeongenderbasedandotherformsofdiscriminationandaddressthemthrough
    welltargetedinvestments.

    GEOGRAPHICTARGETING
    InresponsetothecallforgreaterselectivityandfocusunderthesetofreformsembodiedintheUSAIDs
    PolicyFrameworkfor20112015andUSAIDForward,USAID/Indonesiaappliedrigorousgeographic
    analysistotargettheFiscalYear(FY)20142018strategy(seealsoAnnex2).TheMissionsgeographic
    focusareahasbeenreducedtolessthanhalfofthepreviousstrategy.Wenowfocusonaselect
    numberofprovinceswhereUSAIDresourcesareexpectedtoachievethegreatestmeasurableimpactin
    keysectorsthatwillshapeIndonesiasoverallstabilityandprosperity.

    Ouruseofgeographicanalysisofdataandmapsallowsfortargetedinformationatthelocallevel.
    Severaloverarchinganalyticalcriteriaemergedasthekeyfactorsinfocusingthestrategyonspecific
    sectorsandpopulationgroupsinselectgeographicareas.Thesecriteriainclude:GOIdevelopment
    priorities,localgovernmentcommitmentandpoliticalwill,likelihoodofimpact,otherdonoractivities,
    previousexperienceandexistingrelationships,sectorcoordinationopportunities,abilitytocoinvest
    withtheprivatesector,populationdensity(concentrationofthepoorestandvulnerable),disasterand
    climatechangevulnerability/mitigation,andbiodiversity.Asaresult,weselected14provincesfor
    priorityfocus.WhileeachDOthemewasintegratedintotheanalysis,geographictargetingwas
    primarilydrivenbyhealthandenvironmentalconsiderations.Democraticgovernanceactivitiesunder
    DO1andeducationactivitiesunderDO2willbetargetedwithinthepriorityfocusareas.Science,
    technology,andinnovationactivitiesunderDO4willtakeplacelargelywheretheuniversitiesand
    researchinstitutesarelocated.

    InvestinginIndonesia 11

    DEVELOPMENTHYPOTHESIS

    Thegoalofthisstrategy,AstrongerIndonesiaadvancingnationalandglobaldevelopment,reflects
    Indonesiasownaspirationsfor20052025:Indonesiathatisselfreliant,advanced,just,and
    prosperous(BAPPENAS,2007,pg.33).TheGovernmentofIndonesiasvisionoflongterm
    developmentisbasedoneightobjectives,includingstrongerdemocraticinstitutionsandruleoflaw;
    reductionofsocialgaps;balanceamongtheutilization,sustainability,andavailabilityofnatural
    resourcesandtheenvironment;andincreasedinternationalengagement.StrongerintheIndonesia
    contextconnotesmoreempoweredandtakinggreaterownership.Thequalitiesofastronger
    IndonesiawouldbedemonstratedbyIndonesiasabilityandwillingnesstotaketheleadininitiatives
    acrosssectors;continuetoincludecompleted,successfulinitiativesintheirbudgettosustain
    developmentimpacts;andstrengthentheemphasisofUSAIDasapartnerandnotadonor.Thegoal
    statementalsoacknowledgesthatIndonesiamustaddressbothitsinternaldevelopmentgapsandits
    externaldevelopmentopportunitiesasittransitionsfromatraditionalaidrecipienttoapartnerandco
    investorindevelopment.TheMissionworkedcloselywiththeGovernmentofIndonesia(GOI)torefine
    thisgoalstatementandensurethatitreflectsoursharedprioritiesforlongterminvestment.

    InvestinginIndonesia 12
    Middleincomecountries(MICs)areplayinganincreasinglyimportantroleintheinternational
    developmentarchitectureasdonors,partners,andsourcesofexpertise.MICs,suchasIndonesia,are
    bothdonorsandrecipientsofaid,provideauniqueperspectiveonthedevelopmentexperience,and
    playanincreasinglyimportantroleintheglobalcampaigntoachievetheMDGs.Thecurrenteight
    MDGswhichrangefromhalvingextremepovertytohaltingthespreadofHIV/AIDS,addressing
    environmentissues,andprovidinguniversalprimaryeducationhavebeenimportantmilestonesin
    globalandIndonesiannationaldevelopmentefforts.Globalpartnershipindevelopmentisincreasingly
    aboutsolidarityandcooperationamongcountriesandwiththeMDGssettoexpirein2015,Indonesiais
    helpingshapeinternationaleffortstodefinemilestonesforprogressthroughitsleadershipinthePost
    2015developmentagendaprocess.

    ThisstrategysDevelopmentHypothesisisbasedontheidentificationofkeyconstraintstoprogress.
    Governance(includingcorruption)andservicedeliverywereidentifiedasthetwocriticalpointsof
    interventionforIndonesiatoaddressitsinternaldevelopmentgaps.Regionallyandglobally,Indonesia
    shouldacceleratethedevelopmentandapplicationofstateoftheartscienceandtechnology(S&T),
    anditmusttackleglobaldevelopmentchallengeswithnationalandregionalimplications,notably
    infectiousdiseases,biodiversity,reducinggreenhousegasemissions,andadaptingtoclimatechange,
    includingdisasterriskresilience.

    TheresultsframeworklinksimpactacrossDOsinawaytraditionalUSAIDsectorspecificstrategic
    approachesoftendonot.Thereareopportunitiesformultiprongedapproachesthatlinkgovernance,
    S&T,innovation,andprivatesectorengagementwithhealth,education,andenvironmentalobjectives.
    Anintegratedapproachwillleadtoagreaterimpactthanthesumoftheparts.TheSubIntermediate
    Results(SubIRs)feedintotheIntermediateResults(IRs)thatsupporttheDOsandontotheoverall
    CDCSgoal.

    Figure1ResultsFrameworkGraphic

    InvestinginIndonesia 13
    Figure2DevelopmentObjective1:ResultsFrameworkGraphic

    DEVELOPMENTOBJECTIVE1:DEMOCRATICGOVERNANCESTRENGTHENED

    Astheworldsthirdlargestdemocracy,Indonesiaisakeyallywhosesuccessfuldemocratic
    consolidationhasregionalandglobalimplications.USGinterestsarecloselyassociatedwithasuccessful
    democracyinIndonesiafortwoprincipalreasons:first,Indonesiahasthecapacitytopositivelyinfluence
    democratictrajectoriesinothercountriesintheregionandtheworld,especiallyMuslimand/orformer
    authoritarianruledcountries;andsecond,improveddemocraticgovernanceinIndonesiapromises
    significantimpactontheotherDevelopmentObjectivesidentifiedinthisstrategy.Further,while
    Indonesiahasbeensuccessfultodateinthetransitionfromauthoritarianrule,thefullconsolidationof
    democracyisstillaworkinprogress.InmultipleanalysesconductedbyUSAID,otherdonorsand
    independentscholars,theneedforIndonesiatomakefurtherprogressagainstobstaclestodemocratic
    governance,includingtheguaranteeofequalitybetweenmenandwomen,hasbeenclearlyarticulated
    (USAID/Indonesia,2013a;Aspinalletal,2010;Saichetal2010).

    Governmentaccountabilityandresponsiveness,civilsocietyorganizations(CSOs)andnon
    governmentalorganizations(NGOs)capacity,protectionofcitizenrights,provisionofbasicservices,
    andsustainabilityinEasternIndonesiahaveallbeenidentifiedaskeyconstraintstodemocratic
    governanceandequitableeconomicdevelopmentmorebroadly.Furthermore,withitsextensivelegal
    andjudicialdiscriminationagainstwomenandgirls,Indonesiacurrentlyhaslimitedgovernmentcapacity

    InvestinginIndonesia 14
    toimplementgendercommitmentsatthenationalandlocallevel.Forexample,of154localregulations
    passedin2009,63directlydiscriminateagainstwomen,andmanyarejudgedbythepublictobe
    inconsistentwithIndonesiasconstitution(KomnasPerempuan,2012).Genderbasedviolence,
    pervasiveacrossthecountry,particularlyinEasternIndonesia,isaserioushumanrightsissueto
    address.Consequently,investmentindemocracyandgoodgovernancecarriestheprospectofglobal
    impactbydemonstratingthatIndonesiacanprosperandthriveasafunctionofitscommitmentto
    publicaccountability,broadcivicparticipation,andtheprotectionoftherightsofallitscitizens.

    Accountability
    USAIDsrecentlycompletedDemocracy,Rights,andGovernance(DRG)Assessmentconcludedthata
    weakanddeeplycorruptjusticesystemconstitutedtheprinciplegovernancechallengefacing
    Indonesia,alongwithpoorservicedelivery(USAID/Indonesia,2013a).EventhoughIndonesiahasmade
    someprogressinaddressingthewaste,fraud,andabuseassociatedwithcorruption,withhighprofile
    corruptioncasesfrequentlyinthenewsandbroadpublicsupportforanticorruptionefforts,thereisstill
    significantprogresstobemade.Additionally,theDRGAssessmentidentifiedEasternIndonesiaasa
    regionofspecialconcernregardingthesechallenges.

    TofacilitateconsolidationofIndonesiasdemocracyandenablemoreeffectivegovernance,itiscritical
    thatcorruptionbereducedandtheruleoflawstrengthened.Ifthereareimprovementsinthe
    performanceofthejusticesector,thecapacityofkeyaccountabilityinstitutionstocombatcorruption,
    andthecapacityofnongovernmentalstakeholderstoholdthegovernmentaccountablewiththehelp
    ofalargelyfreebutmoreprofessionalpressthenoverallpublicaccountabilityinIndonesiawillbe
    improved.Toeffectivelyaddressmoresystemicchallenges,however,thisfledglingcommunityof
    accountabilityincludinggovernmentinstitutionsaswellascivilsociety,media,universities,and
    privatesectoradvocatesneedstobeexpandedandstrengthened.LinkstoUSGagencieschargedwith
    accountabilityfunctionsinourowngovernmentandotherorganizationsthatparticipateintheseefforts
    willbeactivelypursuedtoenhanceresultsunderIR1.1.

    CivilSociety
    Currently,Indonesiandemocracybenefitsfromatechnicallycapableandactivecivilsociety,andin
    certainsubsectors(religiousassociationsandmediaoutletsinparticular)theseorganizationshavedeep
    rootsinsociety.Somehavedemonstratedsustainability.InmanyofthesectorsinwhichUSAIDworks,
    CSOs(particularlythoseengagedinresearchandadvocacy)remainoverlydependentonfundingfrom
    internationaldevelopmentpartners.Theseorganizationstendtohaveweakmanagement,sufferfrom
    othercapacitydeficits,anddonotsufficientlypromotegenderequalityoraddressinequalitiesaffecting
    otherdisadvantagedgroups(bothwithintheorganizationandinsocietymorebroadly).Someofthese
    weaknessesareinternaltotheseorganizationsandsomeareexacerbatedbydeficienciesintheenabling
    environment.TheseorganizationstechnicalcontributionstoachievingUSAIDobjectivesinIndonesia
    willbeintegratedthroughouttheresultsframework.IftheorganizationalcapacityofIndonesianCSOs
    andNGOsisincreased,theenablingenvironmentfortheseorganizationsimproved,andhumanrights
    promotedbytheseorganizationstogetherwiththeIndonesiangovernment,thenmeaningfulcivic
    participationinIndonesiawillbeenhancedacrossthesectorsofgovernanceandcitizenrights,science
    andtechnology,education,health,andtheenvironment.

    ProtectionofCitizenRights
    TheDRGAssessmentfoundthatanotherimportantgapinIndonesiasdemocraticgovernanceisthe
    protectionofcitizenrights.Marginalizedgroupsparticularlyreligiousandethnicminorities,women,
    LGBT,sexworkers,indigenouspeople,andtheextremepoorfinditmoredifficulttoaccessjusticeand

    InvestinginIndonesia 15
    tohavetheirrightsprotectedbythestate.1Oneimportantmeasureoftheperformanceofademocracy
    ishowwellitprotectstherightsofitsminoritiesfrominfringementbythemajority;iftheseminorities
    feelincludedinandprotectedbythedemocraticsystem,theyarelesslikelytosupportnondemocratic
    alternativestothatsystem,therebydeepeningdemocraticconsolidation.Ifaccesstoandequitable
    applicationofjusticeformarginalizedcitizensisincreasedandtheabilityofgovernmenttoprotect
    citizenrightsisimproved,thenprotectionofcitizenrightswillbepromoted.Further,bymoreroutine
    protectionofcitizenrights,thecivicvirtueofincreasedtolerancecanalsobecultivated.

    EquitableSustainableDevelopmentinEasternIndonesia
    Persistentunderdevelopment,andcitizendiscontentthataccompaniesit,inthetargetprovincesand
    districtsofEasternIndonesiacouldjeopardizeIndonesiascredibilityasamoderndemocracy.Reversal
    ofthesetrendswillrequiresignificantimprovementinaccountable,inclusivegovernanceandequitable
    accesstoqualitybasicservicesintheseprovinces.Recognizingthekeyrolethatpoorgovernanceplays
    infeedingpublicdisquiet,EasternIndonesiasbiggestdevelopmentchallengesspanmultiplesectors.
    Thus,wewillworkinanexplicitlycrosssectoralmannerlinkingresultsindemocracyandgovernance,
    education,health,andenvironmentpursuedthroughaparticipatorydevelopmentapproachthatserves
    toenhancehumansecurityandopportunity.Increasedcivicengagement,improvedbasicservice
    deliveryandreducedlevelsofgenderbasedviolenceallservetoaugmentgovernancelegitimacywhich
    inturnsupportstheintendedresultofequitablesustainabledevelopmentintheseareas.

    INTERMEDIATERESULT(IR)1.1:COMMUNITYOFACCOUNTABILITYIMPROVED
    ThisIRfocusesonbuildingandsustainingacultureofaccountabilityinnationalandsubnationallevels
    ofgovernanceinIndonesia.Acombinedsupplyanddemandapproachworksunderthedevelopment
    hypothesisthat:(a)increasingthecapacity,independence,andtransparencyofthoseinstitutionsthat
    arethemselvesmechanismsforgreateraccountability;(b)improvingtransparencyinbudgetandhuman
    resourcesprocessesinkeyministries;and(c)amplifyingexternalpressurefromcivilsociety,mediaand
    theprivatesectorwillimproveaccountabilityandeffectivenessofgovernanceinIndonesia.Thiswill
    leadtoastrongerdemocracyandaccesstoimprovedandequitableservicedeliveryforIndonesian
    citizens.TheworkunderthisIRwillalsosupporttheMissionseffortsunderotherDOs.Forexample,
    workwithinstitutionsliketheOmbudsmanoftheRepublicofIndonesia(ORI)andtheMinistryofCivil
    ServiceManagementandBureaucraticReformwillbelinkedtotheworkunderIR2.3onimproving
    accountabilityatsubnationallevelsofgovernmentforthedeliveryofpublicservices.

    Targetedinstitutionsmayincludethosechargedwiththeadministrationoftheruleoflaw,anti
    corruptionbodiesandthoseinthegovernmentexplicitlychargedwithaccountabilityfunctions
    (includingentitiessuchastheCorruptionEradicationCommission(KPK),AuditBoardoftheRepublicof
    Indonesia(BPK),InspectorateGenerals(IGs),StateFinanceAccountabilityCommittee(BAKN)andthe
    ORI).Thefocusofworkwillincludeenhancedruleoflawandadministrationofjusticeandwillpromote
    progressoncriticalaccountabilityprocesses,suchasbureaucraticreform,greatersensitivitytothe
    challengesfacedbywomeninaccessingthejusticesystem,andtransparencyinitiatives.Institutional
    reformactivitiesunderthisIRwilltargetministriesthatarekeytoachievingotherDOsunderthis
    strategy.Forexample,theMissionisworkingonanationalqualityofhealthcarestrategythatwill
    includeanaccountability/sanctionselement,whichwilllikelyinvolvetheIGs,judiciarybodies,and
    licensingandaccreditationbodies.Progressinenforcementagainstdomesticandtransnational

    1
    The GOIs World Banksupported PNPM Peduli program offers evidence of the critical link between poverty reduction and rights for
    marginalizedcitizens.http://pnpmsupport.org/pnpmpeduli.

    InvestinginIndonesia 16
    organizedcrimewillhelpcreatesufficientdeterrentstocombatillegallogging,reducewildlife
    trafficking,andminimizeillegal,unreported,andunregulatedfishing.IR1.1willalsostrengthenthe
    abilityofCSOstoutilizepublicinformationtodemandgreateraccountabilityandthemediatobetter
    communicatethatinformation.Finally,theIRwillseekcommoncausesandpartnershipswiththe
    privatesector,manyofwhomcontributetothepatternsofcorruptionwhileothersareinterestedin
    andadvocateforamoreaccountablegovernment.

    SubIntermediateResult(SubIR)1.1.1:Accountabilityofjusticesectorimproved
    ThisSubIRwillfocusontheimprovementofperformanceandtransparencyintheIndonesianSupreme
    CourtandtheAttorneyGeneralsOfficebyprovidingtechnicalassistancetoimprovetherecruitmentof
    justiceofficials,andprovideethicaloversightofprosecutorsandjudges.Greatertransparencyinthe
    recruitmentofjudgesandimprovedethicaloversightwillreducetheincidenceofcorruptjudgesand
    prosecutors,resultinginamoreeffectiveandefficientjusticesystem.Likewise,astrongeremphasison
    controllingcorruptionwillresultingreatercredibilityinthejudiciaryandtheprosecutorsoffices,
    promptingmorecitizenstoreportcrimes.Accesstopublicinformationforkeyinstitutionslikethe
    mediaandcivilsocietyiscriticaltoimprovingjusticesectortransparency,improvingperformanceand
    managementwithinthecourtsandreducingcorruption,andempoweringcitizenstoknowtheirlegal
    rights.Increasingaccesstopublicinformationandimprovingjudicialandprosecutorethicsstandards
    hasanimpactonsectorssuchasenvironmentalprotectionthatsufferfromcorruptioninthejustice
    sector,lackofintegrationofenvironmentalprotectionandruleoflawafindingofUSAIDsForestryand
    BiodiversityAssessment(USAID/Indonesia,2013b).Totheextentpracticable,thisIRwillsupport
    activitiesthatexpandtherecognitionandprotectionoflandrights,includingwomenslandrights,and
    willlinknaturalresourceaccessandpropertyrightsissuestolowemissionsdevelopmentand
    biodiversityconservationinitiativesunderDO3.

    SubIntermediateResult1.1.2:Capacityofkeyaccountabilityinstitutionstocombatcorruption
    improved
    ThisSubIRwillsupporteffortstoimprovethedepthandbreadthoftheaccountabilitysystem,its
    effectiveness,andsynergyofthekeyaccountabilityagenciesinpreventingandcombatingcorruption.
    AgenciesmayincludetheKPK,DevelopmentandFinancialSupervisoryBoard(BPKP)andIGs,BPK,BAKN,
    ORI,andthePublicInformationCommission(KIP).Thissupportsreformeffortstowardamore
    independentaccountabilitysystemandsynchronizingeffortsbetweencorruptionpreventionand
    enforcement,extendingaccountabilitysystemcapacityandinfluencetotargetedprovincialandsub
    provinciallevels.

    ActivitiesunderSubIR1.1.2willimprovecoordinationoncorruptionpreventionbetweenKPK,asthe
    championanticorruptionagency,andotherkeyaccountabilityagencies.Potentialactivitiesinclude
    assistanceindevelopingworkablecooperationmechanismsbetweenKPKandotherjudicialinstitutions
    topreventandcombatcorruptionandpromotetrainingincorruptionprevention.Activitiesmay
    includeimprovingtheindependenceandcapacityofIGs,andprovidingsupportforanIGcommunity
    thatwillaidincorruptionpreventionefforts.Activitiesmaybeundertakentoimplementfraudcontrol
    systemsatkeyaccountabilityagenciesandotherstateagencies,improveactiononrecommendations
    fromBPKreports,andhelptopromotecompliancewithpublicinformationrequestsinlinewitha
    strategydevelopedforproactiveinformationprovision.Amediastrategymaybedevelopedfora
    campaignonthedifferenteffectsofcorruptioninthedailylivesofmenandwomen.Anintegrated
    approachoncorruptiontargetinglocalgovernmentsorcitieswiththehighestspendingmaybepiloted.

    InvestinginIndonesia 17
    SubIntermediateResult1.1.3:Capacityofnongovernmentalstakeholderstoholdgovernment
    accountableimproved
    ActivitiesunderthisSubIRwillcontributetoincreasingnongovernmentalactorsbargainingpowerto
    influencegovernmentpoliciesrelatedtotransparencyandaccountability,usingsocialandmainstream
    media,andstrengtheningtheanticorruptionmovement,especiallyattheregionallevel.Linkedclosely
    withworktoenhanceCSO/NGOcapacityunderIR1.2below,activitiesunderSubIR1.1.3mayinclude
    trainingontheuseofsocialmediafortransparencyandaccountabilityandtrainingforregionalmedia
    oninvestigativejournalism.Publicforumsmaybecreated,onlineandoffline,atregionalandnational
    levels,toincreasepressureforaccesstogovernmentinformation.Sharingandexchangeofknowledge
    andbestpracticesbetweennational,regionalandinternationalcivilsocietyorganizationsthatworkin
    theanticorruptionsectorwillbeencouraged,includingthroughcivilsocietysactiveparticipationas
    partoftheOpenGovernmentPartnership.Additionally,researchandadvocacywillbepromotedinkey
    issueswherecorruptionislikelyrampant,possiblyincludingnaturalresourcemanagement,traffickingin
    persons,businesslicensing,andpublicprocurement.Otherpotentialactivitiesincludemeasuringand
    indexingthecorruptionlevelineachprovinceandholdingeducationcampaignsatthenationaland
    regionalleveloncorruptionanditsdamagetothepeople.

    INTERMEDIATERESULT1.2:CIVICPARTICIPATIONENHANCED
    ThesecondIRfocusesonrobustbutstrategicpublicparticipationincivilsociety,whichholdsthe
    promiseofservingthreerelatedfunctionsinsupportofdemocracyinIndonesia.First,awatchdog
    functionholdsthestate(bothnationalandlocalgovernment)accountabletocitizens;second,an
    advocacyfunctionallowsindependentorganizationstoarticulatetheinterestsofconstituentgroupsfor
    specificgoals;andfinally,theciviceducationfunctionequipscivilsocietytoserveasalaboratoryfor
    democracy.IR1.2willfocusonCSOs(includingselectedthinktanks)thatemphasizeDO1relatedissues
    (transparency,accountabilityandhumanrights)aswellasCSOsinvolvedintheworkofDOs2and3
    (servicedeliveryandcommunitybasednaturalresourcesmanagement).

    InallthreesubIRareas,analysisidentifiesbothpromiseaswellassignificantgapsincapacityamong
    thegroupsthatmakeupIndonesiascivilsociety(AusAID,2012a;USAID/Indonesia,2013a).Ifthe
    enablingenvironmentandcapacityofIndonesianCSOsandNGOsisimproved,andifthese
    organizationsandgovernmentsdeliberatelypromotetheinclusionofwomenandmarginalizedgroups
    (oftenleftoutofpublicdebateandopportunities),civicparticipationwillbestrengthened.Activities
    undertheproposedIRwillfocusonincreasingorganizationaldevelopmentperformanceoftargeted
    groupsandtheenablingenvironmentinwhichallvoluntaryorganizationsoperatetobuildtheir
    sustainabilityandinternalcapacity.Forexample,activitiesmayincludeusingIndonesianlawsthat
    confercontrolofsustainablenaturalresourceusetocommunities,tosupportcommunitybased
    resourcemanagementinareasofhighbiodiversityandvulnerabilityandensuringthattheinterests,
    leadership,andexpertiseisincludedintheseprocesses.Activitiescanalsoassureimprovedservice
    deliverycontributionsbyCSOsandNGOsineducationandhealth.ThisIRwillgiveparticularsupportto
    organizationsthatadvocateforandorganizetosupporttheempowermentofwomenandgirlsinthe
    democratic,social,andeconomiclifeinIndonesia.

    SubIntermediateResult1.2.1:CapacityofIndonesianCSOsandNGOsincreased
    ActivitiesunderthisSubIRwillbuildtheinternaltechnicalandmanagerialcapacityofCSOsandNGOsto
    ensuretheiraccountabilityandsustainability.Additionally,throughinnovativeprocurementmethods,
    thecapacityofCSOsandNGOstoreceiveandmanagefundswillbereinforced,includinginsectorssuch
    asenvironment,health,andeducation.Potentialactivitiesincludeprovidingtechnicaland
    administrativelearningandmentorshipopportunitiesandfundingthroughasmallandmidsizedgrant

    InvestinginIndonesia 18
    mechanism.Additionally,asystemwhereCSOs/NGOsareaudited,tracked,andmonitoredisinthe
    planningstages,whichwillhelpbuildconfidenceofindividualandinstitutionaldonorstoinvest.

    SubIntermediateResult1.2.2:EnablingenvironmentforCSOsandNGOsimproved
    PotentialactivitiesunderthisSubIRwillimprovetheenablingenvironmentforCSOsandNGOsby
    supportingthedevelopmentandimplementationoflawsandregulationsthatensuretheprincipleof
    freedomofassociation.ActivitiesunderSubIR1.2.2includeprovidingassistancetotheGOItoestablish
    regulatoryframeworksthatenablethedevelopmentofeffectiveandaccountablecivilsociety,reduce
    thelegaluncertaintyforCSOactivities,andpromotecitizenparticipation.Targetedinterventionsmay
    includesupportingtheCoalitionfortheFreedomofAssociation(KoalisiKebebasanBerserikat)to
    advocateforeffectiveregulationsonCSOgovernancesuchaslawonassociations,lawonfoundations,
    andlawonmassorganizations.ResearchandanalysisontheeffectivenessofpoliciesrelatedtoCSO
    governancemaybeundertakenanddisseminated.ThiscanexposetheGOItolawsandpracticesthat
    areadoptedandimplementedbysimilarlysituatedcountries.

    SubIntermediateResult1.2.3:GenderequalitypromotedbyCSOs,NGOs,andgovernment
    ThisSubIRaimstoimprovewomen'saccesstojustice,promotewomensrepresentationingovernment
    institutions,andredressdiscriminatorylaws,policies,andregulations.Thepresenceofwomen's
    organizationsandgrowingattentiontogenderissueswithinCSOsandtheGOIcreateopportunitiesfor
    USAIDtobuilduponexistingcapacitiesandpriorities.PotentialactivitiesunderSubIR1.2.3include
    buildingcapacitytoconductandusedatafromgenderanalysis,improvedgenderequalitypracticesof
    partnerorganizations,implementationofequalityprinciples,developmentofactivitiesthatreduce
    genderinequalityand/orgenderbasedviolence,andthecollectionanduseofsexdisaggregateddata.
    EffortsunderthissubIRwillcompleteoperationalresearchontopicssuchasgenderbasedbarriersto
    politicalparticipationandaccesstojustice;promotegendersensitivematerialsintargetededucation
    sectors;increaseparticipationoffemalestudentsinscholarshipandtrainingprogramsinscience,
    technologyandinnovation;andensurethatgenderneeds,interests,andprioritiesareanalyzedand
    addressedinnaturalresourcemanagementandclimatechangestrategiesandpolicies.

    INTERMEDIATERESULT1.3:PROTECTIONOFCITIZENRIGHTSPROMOTED
    Indonesiasconstitutiondoesnotexcludeanyonefromsocial,political,oreconomicrights,andthe
    countrymaintainsrelativelyimpressivecohesiongivenitsimmensegeographyanddiversityofpeople.
    Nonetheless,thereremainbarrierstotherealizationofrightsformanyIndonesians.Therecontinueto
    betroublingcasesofintoleranceandviolenceagainstreligious,cultural,andsexualminoritiesandother
    marginalizedIndonesians(KomnasPerempuan,2012).Womenalsocontinuetofacebarrierstofull
    inclusioninpolitical,economic,andsociallife,andatthelocallevelinsomepartsofIndonesia,policies
    restrictingwomensrightsarebecomingmorecommon.Thepersistentexclusionofcertainpopulations
    andviolationsofrightsposethreatstothefullconsolidationofIndonesiasdemocracy,whichdepends,
    inpart,onequalprotectionofallcitizensrightsundertheruleoflaw.

    ThisIRworkstoensurethattherightsofallcitizensareprotectedbytheunbiasedimplementationof
    goodlaws,reliableenforcement,andpredictableadjudicationtowhichvictimshaveaccess.Success
    underthisIRwouldseegreateracceptanceofdifferencesamongIndonesiansandareductioninviolent
    attackstargetingindividuals,groups,andplacesofworship,aswellasincreasedempowermentamong
    womenandmarginalizedpopulations,includingLGBTcommunities.Thechallengesareinthe
    implementationofofficialpolicy,sothefocusofthisIRissupportinghumanrightsdefendersincluding
    individuals,CSOs,andinstitutions;reducingimpunityforthosewhocommithumanrightsabuses
    includingsexualandgenderbasedviolence;andempoweringgovernmentalandnongovernmental

    InvestinginIndonesia 19
    actorstobreakwhathavebecomerelativelypredictablecyclesofviolence.Thisaddressestheneedfor
    havingajusticesystemwherevictimsofrightsabusescanhaverecourse,whichiscomplementedby
    effortsinIR1.1.

    SubIntermediateResult1.3.1:Accesstojusticeformarginalizedcitizensincreased
    ThisSubIRwillassistthejudiciaryandtheprosecutorsoffices,localgovernmentsandthecommunity
    toempowerpoorandminorityvictimsofviolence.Accesstojusticeformarginalizedindividualsis
    crucialtoaddressissuesofhumanrightsandimpunity.Atthecenterofintoleranceandviolenceagainst
    minoritiesisaweakruleoflawsystem.Akeycomponentofthisworkaimsatempoweringvictimsto
    seekredressincrimesagainstthem.Illustrativeactivitiesincludeenhancingcommunityawarenessof
    humanrightscomplaintsystemsandtheoperationofthelegalsystems,improvingaccesstolegal
    services,andincreasinguseofparalegalandcommunitybasedadvocacyservicesformarginalized
    persons,includingwomen,religiousminorities,andLGBTcommunities.Thisincludesincreasingthe
    effectivenessofcommunityreferralsystemsthatlinktothejudiciary,theprosecutorsoffices,and
    respectivelocalgovernments.Animportantcomponentistechnicalassistancetoimprovethefilingof
    humanrightscomplaintsthroughthelegalsystemandadvocacytomakesurethejusticesystem
    addressesthesecomplaints.

    SubIntermediateResult1.3.2:Abilityofgovernmenttoprotectcitizenrightsimproved
    InadditiontostrengtheningthecapacityofadvocacyorganizationsunderIR1.2,thisSubIRwill
    enhancecollaborationbetweenCSOsandthegovernmentonissuesofrightsprotection.Activitiesmay
    includefacilitatingdialoguethroughsupportingprocesseswherekeyGOIinterlocutors,advocacy
    organizations,andrepresentativesofmarginalizedgroupsorvictimsofrightsabusecanproductively
    interact.Assistancemaybeprovidedtoimprovesexdisaggregateddatagathering,analysis,and
    communicationofanalysesbyNGOsandadvocacyorganizationstohelpinformpolicyrelatedtothe
    protectionofhumanrights.Technicalassistanceorpeermentoringmaybeprovidedtokeygovernment
    ministriesandagencies,suchastheMinistryofLawandHumanRights,theNationalHumanRights
    Commission,theNationalCommissiononWomenandChildProtectionandotherstoenhancetheir
    abilitytoinvestigateandproperlyreportonhumanrightsviolations.Activitiesmayincludetraining,
    technicalassistance,andcommunityoutreachtoexpandlegalaidtotargetedmarginalizedpopulations
    andvictimstoensurethejusticesystemrespondstoprotectionimperativesandprovidesjusticeto
    victims.Additionally,supportmaybeprovidedforadvocacyfortheprioritizationofstatebudget
    allocationsforlegalaidforminoritygroups.

    INTERMEDIATERESULT1.4:SUSTAINABLEDEVELOPMENTINTARGETEDDISTRICTSINEASTERNINDONESIAENHANCED
    EasternIndonesiahasabundantnaturalresourcewealthandabreadthofsocioculturaldiversity,which
    representimportantassetsforthecountry.Despiteimpressiveprogressinotherareas,Indonesiawill
    bealesscompellingexampleofsuccessfulnationbuildinganddemocracyunlesshumandevelopment
    indicatorsinEasternIndonesiaimprovesignificantly.ConsideringthepositiveresolutionoftheAceh
    conflict,therearegoodreasonstobelieveIndonesiacantacklethedevelopmentchallengesintheEast
    aswell.InpreviousUSAIDnomenclature,EasternIndonesia(provincesofMaluku,NorthMaluku,West
    Papua,andPapua)wouldbedescribedasaSpecialObjective.Undercurrentguidance,however,the
    MissionsintentionsconcerningEasternIndonesiaareincludedunderDO1,toaccentthatthemost
    criticalconstraintandlargestchallengestodevelopmentintargetprovincesofEasternIndonesiaare
    relatedtodemocraticgovernance.Theseproblemsaremanifestinthewaysthatnationalandlocal
    governmentsareabletodeliverthepublicservicesthattheyarelegallymandatedtocarryout.Further
    challengesincludetheneedtoenhanceotheraspectsofhumansecurityincludingimprovedlevelsof
    inclusionandparticipationofcitizensandbettercapacitytoprotectvulnerablegroupswhooftenlack

    InvestinginIndonesia 20
    accesstojusticeorotherrecoursewhentheyfindthemselvesvictimized.Improvingthedemocratic
    governanceperformanceofselectedprovincesinEasternIndonesiawillhelpthenationrealizeits
    ambitiontobeaworldleaderinpromotionofdemocracy,improvedevelopmentoutcomes,reduce
    discontent,andincreaseloyaltyofcitizensintheseprovinces.

    InfocusingonEasternIndonesia,theMissionrecognizesthatitistakingonperhapsthehardest
    developmentchallengeinIndonesiaonethatwillrequireamultisectoralinvestmentwhichgoes
    beyondthefiveyearperiodofthisCDCS.USAIDhasanarrayofexistingprogramsandalonghistoryof
    engagementandrelationshipsinEasternIndonesia.Thisworkendowscredibilitythatpositionsus,
    perhapsuniquelyamonginternationaldevelopmentpartners,tohaveimpactinthetargetprovinces.
    StrengtheningthesocialfabricwillrequiresupportastheGOItriestobettermeetasetofbasicneeds
    andtoconvincinglydemonstratethattheeconomicandpoliticalbenefitsofcitizenshipfaroutweighthe
    ephemeralattractionofgreaterautonomy.USAIDworkinthisregionwillneedadistinctandspecific
    approachbecauseofthedepthofproblemsandhowtheyarearticulatedinthenationalpoliticalarena.
    ThisIRwillenhanceeffortsatcivicparticipationthatbringcommunitiesandthegovernmenttogether,
    channelgrievances,increaseefficacy,andbetterinformpolicytoreducesocialandpoliticaltensions.
    Manycitizenconcernsarebasedonthelackofqualitybasicservicesavailabletomanycommunities.
    Similarly,lackofequityinbenefitfromappropriatenaturalresourcemanagementhaslongbeena
    sourceofsocialtensionsthatfurtherdeepensuspicionandwillbeanareaofinterventionunderthisIR.

    SubIntermediateResult1.4.1:Citizenparticipationincommunitydecisionmakingstrengthened
    ThisSubIRwillstrengthencitizenparticipationincommunitydecisionmaking.Activitieswillinclude
    trainingandtechnicalassistancetotargetedgovernmentandCSO/NGOpartnersonenhanced
    communitydialoguemethods.Dialoguebetweenthestakeholdersonissuessuchascommunitybased
    naturalresourcemanagement,amongothers,willbesupported.Targetedinterventionsmayinclude
    training,mentoring,andplanningassistanceforcommunitybasedNGOsandCSOsonadvocacyfor
    developmentplanning.Activitieswillworktowardincreasingthenumberofresolveddisputesatthe
    communitylevel.

    SubIntermediateResult1.4.2:Basicservicesenhanced
    Activitieswillsupportenhanceddeliveryofbasicservices(health,education,water,andsanitation)from
    government,NGOs,andtheprivatesectortoimproveaccessofthepoorestandmostmarginalized.
    Potentialactivitiesincludeadvocacytrainingtotargetstatebudgetspendingonimproved
    infrastructure,maintenance,andsupplies;trainingandtechnicalassistancetoimprovehumanresource
    managementandincentivesforperformance;andsupportforprogramsdesignedtoenhanceskillsand
    culturalsensitivityofproviders,improveadministration,improveaccountabilityandsupervision,
    increasecollectionofsexdisaggregateddata,andenhancedataanalysisskillstoimproveevidence
    baseddecisionmaking.

    SubIntermediateResult1.4.3:Genderbasedviolencereduced
    EffortsunderthisSubIRaimtoreducegenderbasedviolence(GBV)inEasternIndonesia.Potential
    activitiesincludetrainingandtechnicalassistancetohelpincreasestateenforcementoftheprotection
    ofwomensrightsandincreaseprosecutionofperpetrators.Supportmaybeprovidedforpublic
    awarenesscampaignsonexistinglawsagainstGBVtoincreasepublicandcommunitycommitmentto
    securingwomensandchildrensrightstosecurity.Targetedinterventionsmayincludeworkingwith
    menandboystochangeattitudestowardsGBV,improvingcommunitybasedresponseandreporting,
    referralservicestosupportsurvivors,andspatialmappingtoidentifyareaswhereincidencesofGBV
    frequentlyoccursothatactivitiescanbemoretargeted.Effortsmaysupportcommunitycenters,

    InvestinginIndonesia 21
    domesticviolenceshelters,andotherarenasthatcanestablishsafeareasforimmediateprotectionand
    longtermsupportforsurvivors.

    Figure3DevelopmentObjective2:ResultsFrameworkGraphic

    DEVELOPMENTOBJECTIVE2:ESSENTIALHUMANSERVICESFORTHEPOOREST
    ANDMOSTVULNERABLEIMPROVED

    ThisDOrepresentsUSAIDsstrategiccontributiontoeliminatingpreventablematernalandchilddeaths,
    improvingjobrelatededucationalattainment,andbuildingcapacityofsubnationalgovernment,civil
    society,andprivatepartnerships.USAIDhasacomparativeadvantagetoachievethemostimpactfor
    thepoorandvulnerableintheseinterlinkedareas.

    ThebenefitsofIndonesiasfastpacedeconomicanddemocratictransitionneedtoreachall
    Indonesians.Yet,asignificantportionofthepopulationthepoorestandmostvulnerablemaybeleft
    behindiftheirbasicneedsarenotaddressed.Indonesiashealthandeducationindicatorscontinueto
    stagnate.Thesedisparitiesareevidentacrossmostmaternalandchildhealthindicators,including
    deliveriesinahealthfacility,vaccinationrates,andunmetneedforfamilyplanning,allofwhichare
    correlatedtowealthandeducation.Forinstance,maternalandchildmortalityishighestamongthe
    pooranduneducated(BPS,2007;BPS,2012).Accesstowaterandsanitationisalsostronglylinkedto

    InvestinginIndonesia 22
    economicstatus.In2006,IndonesialostanestimatedIDR56trillion($6.3billion)duetopoorsanitation
    andhygiene,equivalenttoapproximately2.3%ofgrossdomesticproduct(GDP)(WorldBank,2008).
    Conversely,theWorldHealthOrganization(WHO)estimatesthatinvestmentsinwaterandsanitation
    wouldyieldeconomicgainsofatleastfivetoone(2009).Therearesignificantlinkagesbetween
    poverty,education,andhealth.WhileIndonesiacontinuestogroweconomically,improvedaccessto
    quality,relevanteducation,andhealthservicesforthepoorestandmostvulnerableacceleratesand
    leveragesimpactoneachoftheseindicatorsandensuresmoreIndonesiansbenefitfromthecountrys
    growth.Withdecentralizedgovernment,buildingthecapacityoflocalgovernmentsandCSO/NGOsis
    vitalforimplementationofnationalandsubnationalpolicies.Further,strategicprivatesector
    innovations,technology,orinvestmentscanaccelerateorbuildsustainabilityofprogress.

    Health
    USAIDsGlobalHealthInitiativeStrategy(20112016)reflectsUSAIDscommitmenttohelpingIndonesia
    achieveitsMDGgoalsinhealth.Indonesia,however,hasamongthehighestmaternalmortalityratios
    (MMR)intheregion,whichappeartohaverisensignificantlyinthepastfiveyears,from228/100,000to
    arangearound359per100,000women.Thisratioisastrongindicatorofthequalityofthehealth
    systemtoendpreventabledeaths.Underfivechildmortalityhasdeclinedslightly,from44/1,000to
    40/1,000.TheNewbornmortalityratehasnotdeclinedin10years,andnowconstitutesoverhalfofall
    underfivedeaths.ItisclearthatIndonesiawillnotachieveits2015MDGgoalof102maternaldeaths
    per100,000births,andmayalsonotachieveitsgoalsforunderfivechildmortality.Inequityisakey
    elementtothesebasichealthservices:Thepoorest25%ofIndonesianshaveanunderfivemortality
    overthreetimeshigherthanthewealthiest25%.Thereareevengreaterproblemswithaccessto
    qualityhealthservices(BPS,2012).Deliveryinahealthfacilityisdirectlycorrelatedtowealthquintile,
    andskilledbirthattendantsatafacilityaredirectlyrelatedtomaternaloutcomes(BPS,2007).Because
    mostcasesofmaternalmortalityarepreventable,itisimportanttolookatthestatusand
    empowermentofwomeninrelationtotheirreproductivehealthrights,especiallyamongyoungpoor
    women,ascriticalforexplainingsomepartofthisproblem.

    With84%ofhouseholdshavingsomeaccesstoimprovedwatersupply,just59%haveaccessto
    improvedsanitation,andIndonesiaisfallingshortonitsMDGgoalsallissuesthatarestronglylinked
    toratesofdiarrhealdisease.Expandedaccesstowaterandsanitationservices,includingincreased
    capacityofwaterutilitiestosustainablydelivertheseservices,andthepromotionofimprovedhygienic
    practice,isimperativetoreduceincidenceofdiseaseandimprovequalityoflife.AccordingtoWHO
    estimates, diarrheaisthesecondleadingcauseofunderfivemortalityor18%ofchilddeaths(2009).
    Significantnationaleffortsareneededtoaccelerateprogressonmaternalandchildhealthandwater
    andsanitationtargets.

    Complexfinancial,social,andculturalfactorsrestrictwomensaccesstohealthservices.Alltoooften,
    decisionsaboutreproductivehealtharebeingmadebymaleorolderfemalerelatives.In2014,GOIwill
    rolloutUniversalHealthCoverage(UHC)inanefforttoreducecostasabarriertoservices.Thiswillbe
    amultiyearefforttoensureappropriateandequitablecoverage.Maintainingqualityofcare,
    appropriateregulationandarobusthealthsystemareessentialtoimprovingoverallhealthoutcomes,
    andtoreachingpoorandvulnerablewomen.

    Education
    Indonesiapossessessignificantresourcesinsupportofbasiceducationandalreadydemonstrateshigh
    netenrollmentrates(95%)attheprimarylevel.Educationisfree(thoughschoolsmayapplyfeesfor
    someservices)andcompulsoryuptothejuniorsecondarylevel(Grade9)withahighliteracyrate.

    InvestinginIndonesia 23
    Despitethesegains,therearestillgapsineducationqualityparticularlyatpostprimaryeducational
    institutionsservingthepoor.Grossandnetenrollmentratesdropsharplyafterthejuniorsecondary
    levelwithonly58%ofstudentscontinuingtheirstudies,whilethepoorestandmostvulnerablehave
    almostnoaccesstohighereducationopportunities.WhileIndonesiahasmadegreatstridesin
    advancingaccesstoandthequalityofprimaryeducation,alargeunmetneedexistsinhelping
    Indonesianstudentsmakethetransitiontoattendeitheracademicprogramstoobtainhigherlevel
    skills,orvocational/practicaljobskillstrainingtoeffectivelyentertheworkforce(WorldBank,2012a).
    Theeducationsystemstilltendstorepresentmenandwomenintraditionalrolesandtochannelmale
    andfemalestudentsintogenderspecificstudiesandcareerchoices,resultinginfewwomeninthe
    science,technology,andinnovationsectorsthesectorsinwhichtheGOIwantstogrowitseconomy.
    Inaddition,moremustbedonetoreducethedropoutrates,improvethegraduationadvancement
    rates,andincreaseemploymentratesofpostprimaryeducationalinstitutionsservingthepoor.

    Twobasiceducationactivitiespreviouslyinitiatedwillcontinueunderthisstrategyinordertomeet
    priorcommitments.TheMissionsBasicEducationPRIORITASprogram(20122017)isbeingmodifiedto
    bepartiallyalignedwithGoal1oftheUSAIDEducationStrategy,whichisImprovedReadingSkillsfor
    100MillionChildreninPrimaryGradesby2015.AnearlierfocusedEarlyGradeReadingAssessment
    (EGRA)showedthatreadingcomprehensionremainsachallengeinprimaryschools.Therefore,the
    secondactivityisaplannednationalEGRAtohelpinformwhatadditionalmodificationstoPRIORITAS
    areneeded.BasiceducationprogramsareexpectedtobefullyfundedwithFY2014BasicEducation
    funds.Anyadditionalbasiceducationresources,beyondwhatisneededtofullyfundtheseprograms,
    willbeforworkinEasternIndonesiathatwillbealignedwiththeUSAIDEducationStrategy.

    Theskillslearnedatinvocationalschoolprogramsgenerallyarepoorlylinkedtotheskillsneededby
    privateandevenpublicsectoremployers.TheGOIhasprioritizedsecondaryeducationandvocational
    trainingasthekeytomeetingthenationseconomicneedsandensuringfuturegrowth.Thehigher
    educationsector(whichincludespolytechnics,communitycolleges,andteachertraininginstitutionsas
    wellasuniversities)hasacriticalroletoplayinbothtrainingthosewhomanageessentialservicesand
    educatingfuturemanagers,technicalspecialists,andleaders.Transitionratestohighereducationare
    extremelylowwithgrossenrollmentratesofapproximately25%,whichhighlightsalimitedabilityto
    trainserviceprovidersandcultivateahighlyeducatedworkforce(WorldBank,2012a).Enrollmentin
    vocationalschoolprogramstendstoreflectlabormarketgendersegmentationwithmalestudents
    concentratedinindustryorientedfieldswhilefemalestudentsareconcentratedinserviceoriented
    programs.TheGOIiscurrentlyassessingdifferentstrategiestoexpandaccesstosecondaryand
    vocationaleducationbybringingmoreservicestoremoteandunderservedareas.Amongthese
    strategiesisexpansionofuniversal(compulsory)educationtosecondarylevel,whichwasrecently
    launchedbytheMinistryofNationalEducationandCulture(MOEC).Underthisinitiative,theGOIwill
    increaseschooloperationalbudgetsforseniorsecondaryeducation,providescholarshipsforstudents
    frompoorfamilies,buildnewschools,andprovideincentivestoeducators.

    INTERMEDIATERESULT2.1:SERVICESTOREDUCEPREVENTABLEDEATHSPARTICULARLYAMONGWOMENAND
    CHILDRENIMPROVED
    ThisIRtargetsthereductionofpreventabledeathsofwomenduringlaboranddeliveryandofnewborns
    andchildrenunderfive.Inordertoachievethisresult:(1)thequalityofhealthservicesmustbe
    improved;(2)barrierstoaccessmustbelowered;and(3)access/useofsafewaterandsanitation
    increased.Toaddresstheneedforimprovedhealthservices,theMissionwilltargetbothpublicand
    privateprovidersofhealthservices.Widevariationinthequalityofcareinhealthfacilitiesisacritical
    factorinlagginghealthindicators.Improvingadherencetoahighqualityofhealthservicesand

    InvestinginIndonesia 24
    reducingthecultural,logistical,political,andfinancialbarrierstoaccessingtheseservicesforthe
    poorestandmostvulnerablewillreducematernalandchildmortalityatboththelocalandnational
    level.ThisisahighGOIpriority,asevidencedbytheplantorolloutUniversalHealthCoverageUHC
    from20142019(theperiodcoincidingwiththisstrategy).Acceleratingreferralofwomenandchildren
    toappropriatehealthservicesisimportantandhasmanysocial,cultural,gender,andfinancial
    components.Healthprovidershavevariedlevelsofpreserviceorinservicetrainingandcapacityand
    theirperformanceispoorlyregulated,withprivateserviceprovidershavinghardlyanyregulationatall.
    Accountabilityforpoorcaredoesnotexist.Inaddition,accessbythepoortowaterismetbyfinancial,
    time,poverty,andculturalbarriersandthiscontributestoillhealthandreducedopportunitiesfor
    economicgrowth.ThisIRwillincludeactivitiestoimproveallofthefollowing:improvingqualityof
    healthservicesandhealthinformationtopromotematernalandnewbornsurvival;improvingreferral
    fromcommunityanddistrictlevelstohigherlevelsofcare;reducingbarrierstoaccessinghealth
    services;improvingaccesstowaterandsanitationservices;encouragingcommercialviabilityofwater
    utilities;andpromotingoftheuseofbetterhygieneinordertoimprovechildhealth,particularlyamong
    thepoorestandmostvulnerable.

    SubIntermediateResult2.1.1:Qualityofpublicandprivatehealthservicesimproved
    IllustrativeactivitiesunderthisSubIRincludeimprovingthequalityofemergencyobstetricand
    newborncareatkeyfacilities;establishingmentoringnetworksbetweenhospitalsandclinicsto
    promotecontinuousqualityimprovement;improvingqualityofclinicalandadministrative/management
    standards;providingtechnicalassistancetoprofessionalassociationsofclinicalprofessionalstoadopt
    andpromoteevidencebasedlifesavinginterventionsformaternalandnewbornhealth;andimproving
    healtheducationandempowermentofmothers,families,andvillagehealthcareproviderssothat
    qualityofcareextendsintothecommunity.Otherpotentialactivitiesinclude:targetedtechnical
    assistancetonationalgovernmentandstakeholderstodevelopaNationalQualityofHealthServices
    Strategy;supporttonationalhospitalaccreditationbodiestoimproveandmaintainquality
    standards;andtargetedshortorlongtermtechnicalassistancetokeygovernmentornongovernment
    partners.

    SubIntermediateResult2.1.2:Barrierstoaccessforpoorandmostvulnerablelowered
    Barrierstoaccesstoservicesforthepoorandmostvulnerablemustbelowered,includinggenderbased
    barriers,suchasthepracticeofrequiringahusbandsconsentbeforeawomancanbereferredfor
    emergencyobstetricalcare,orbarrierswhichprecludeunmarriedwomenfromaccessingcare.
    PotentialactivitiesunderSubIR2.1.2includesupportfornationalrolloutandsubnational
    implementationofUHC,particularlyforthepoorestquintiles.Targetedinterventionswillimprove
    referralsystemstoensurebetteraccesstohealthservicesbythepoorestquintiles,forinstanceby
    expandingtheSMSbasedReferralExchangeNetwork2andstrengtheningandexpandingthenetworkof
    hospitals(bothpublicandprivate)withcommunityhealthcenters(puskesmas)tostrengthenquality
    andreferralservicesandtoreducebarrierstoseekingcare.

    SubIntermediateResult2.1.3:Accesstoimprovedwaterandsanitationincreased
    PotentialactivitiesunderSubIR2.1.3includeimprovingknowledge,attitudes,andbehaviorsof
    improvedWater,Sanitation,andHygiene(WASH)throughtraining,capacitybuilding,andcommunity
    educationeffortssuchastheGOIsCommunityLedTotalSanitationprogramtogeneratedemandfor

    2
    Under a current program an electronic system called SIjariemas allows midwives to inform hospitals of a referral by SMS through one
    number,andreceivefeedbackfromthehospitaltoensurefasterandmoreappropriatereferraltotherightplace,andthatthehospitalsare
    preparedtocareforthepatient.

    InvestinginIndonesia 25
    services.Accesstowaterandsanitationserviceswillbeexpandedtopoorpeoplethroughstrengthened
    engagementwithandamongstthefinancial,public,andprivatesectors.Technicalandcapacitybuilding
    assistancewillbeprovidedtotheinstitutionsthatservicethispopulationtoensuretheiroperational
    viabilityfollowingUSAIDsintervention,andcontinued,independentexpansionofservice.Effortswill
    helpnationalandlocalgovernmentsandlegislaturesfosteranenablingenvironmentthatensures
    sustainablewatersupplyandsanitationservicestothepoorestpopulationsthroughconsensusbuilding
    ontargets,policyandregulatorydevelopment,andidentificationoffinancialsources.

    INTERMEDIATERESULT2.2:QUALITY,RELEVANCE,ANDACCESSTOTARGETEDEDUCATIONSUBSECTORSIMPROVED
    IR2.2addressesthelackofeducationopportunitiesfordisadvantagedandvulnerableIndonesiansby
    raisingjobrelatededucationalattainmentthroughimprovingthequality,relevance,andaccessibilityof
    vocationalschoolsandtertiaryinstitutions.Afocusonpostprimaryandtertiaryeducationwill
    contributetoimprovedessentialservices(inhealth,water/sanitation,andvocationaleducation)by
    trainingkeyserviceprovidersincludingteachers,teachertrainers,nurses,andpublicserviceproviders.
    USAIDsfocusonimprovedrelevanceofvocationalandtertiaryeducationwillequipIndonesiawitha
    bettereducatedworkforce,addressthesignificantunmetneedsofskilledandsemiskilledlabor,and
    positionthecountrytobecomemoreproductiveandcompetitive.InterventionsunderIR2.2will
    increasethecapacityandcompetencyofeducatorsandadministratorstodeliverinstructiontopoorand
    vulnerablepopulationsthroughestablishedservicedeliverysystems,suchasteachertraininginstitutes,
    educationdepartmentsatlocaluniversities,qualityassuranceboards,schools,andeducationministries
    (MinistryofEducationandCultureaswellastheMinistryofReligiousAffairs).Interventionswillalso
    seektoreducedropoutrates,improvegraduationandadvancementrates,andincreasethelevelof
    employmentinhighqualityjobs.Bothformalandnonformaleducationwillbestrengthenedthrough
    improvedinstructionalandbudgetpreparationatthelocalgovernmentlevelincorporatinginnovative
    approachestoeducationinvolvingtheprivatesectorandNGOs.Avarietyofeducationstakeholderswill
    beinvolvedincoordinationandpolicyadvocacyincludingmediaandcentralgovernmenttoensure
    wideraccesstovocationalandhighereducationservices.

    SubIntermediateResult2.2.1:Skillsofteachers/lecturers,administratorsandleadersraised
    Improvementsinthequalityofandaccesstopostprimaryeducationallowsforthosewhowould
    otherwisedropoutoftheschoolsystem(likelythoseinunderservedareasorthepoorest)tocontinue
    theireducation.Potentialactivitiesincludeprovidingtechnicalassistancetoimprovethequalityof
    instructionatvocationalschoolspolytechnicsandcommunitycolleges,therebyhelpingtoreducedrop
    outratesandincreasegraduationratesleadingtoincreasedandhigherqualityemployment.Effortswill
    alsoincludecoordinatingwiththeGOIonthedevelopmentofeducationpolicyinitiativesparticularlyto
    improvethequalityofteachersandadministrators,providingthemwiththeskillsneededtomaketheir
    studentsmoreemployable.Wewillalsoencouragepartnershipsbetweenpostprimaryinstitutions
    (particularlyvocationalschoolsandpolytechnics)andpotentialprivatesectoremployers.Inaddition,
    interventionsmayworktoimprovetheorganizational,budgetary,andadministrativecapacityoftertiary
    institutions(e.g.communitycolleges,polytechnics)servingthepoorandvulnerable,therebyhelpingto
    increaseenrollmentandimproveeducationalquality.

    SubIntermediateResult2.2.2:Systeminclusiveness,accountability,andtransparencyincreased
    PotentialactivitiesunderSubIR2.2.2includeimprovingstudentassessmentprocesses/systemsof
    vocationaleducationandprovidingtechnicalassistancetothegovernmenttostrengthentechnical
    supervisionandstandardizationofschoolqualityandservices.Interventionsmayfacilitateinformation
    anddatasharingwithintheeducationsectortogeneratedemandforbetterservicesandsupport
    studentstransitionthroughtheeducationcycle(e.g.viascholarshipsandothermechanisms).

    InvestinginIndonesia 26
    Increasedinclusiveness,accountability,andtransparencyisexpectedtoresultinstrongerschools
    producinggraduateswithbetterjobrelatedskillsandbetterpreparedforadditionaleducational
    opportunities.

    SubIntermediateResult2.2.3:Innovativeinstructional,administrativeanddecisionmakingapproaches
    responsivetoemploymentdemandspromoted
    PotentialactivitiesunderSubIR2.2.3includeincreasinglinkagesbetweenschools,universities,colleges,
    andprivatesectortoenhancetherelevanceofeducationservicestomeetthestandardsrequiredbythe
    GOIandprivatesectoranddesiredbystudents.Improvedmanagementandgovernanceattheschool
    levelwillincreasedatabasedprogramplanninganddecisionmaking.Technicalassistancemaybe
    providedtotheGOIforrigoroussexdisaggregateddatacollectionandanalysisforeducationpolicyand
    programmingtoimproveaccessandqualityofvocationalschools,communitycolleges,polytechnics,
    teachertraininginstitutions,anduniversitiesthatenrollthepoorestandmostvulnerable.Theprivate
    sectorandhighereducationinstitutionswillbeengagedtoidentifyinnovativeapproachesforeducation
    andforpossiblecoinvestment.Additionally,supportmaybeprovidedforcommunitybasededucation
    initiatives/modelstoenhancethepotentialandopportunitiesfordisadvantagedstudentsand/orother
    marginalizedgroups.

    INTERMEDIATERESULT2.3:GOVERNANCEOFESSENTIALSERVICESATTHELOCALLEVELSTRENGTHENED
    Improvinglocalgovernancecapacitytodeliverhighqualityessentialhumanservicesiskeytofurthering
    DO2.UnderIR2.3,capacityandpartnershipswithgovernment,CSO/NGOs,andtheprivatesectorwill
    bedevelopedandenhanced.IR2.3isatthecoreofachievingDO2.Poorgovernanceofpublicsector
    services,particularlyatthelocallevel,andtheneedforbettercapacitywithintheNGOsectorand
    engagementfromtheprivatesectorareallmajorlimitingfactorsforachievementoftheDO.In
    decentralizedIndonesia,thecapacityoflocalgovernmentstodeliverservicesinaneffective,responsive,
    inclusive,andaccountablemanneriscritical.Inaddition,ensuringthatlocalgovernmentshave
    sufficientcapacitytocontinuetodeliverservicesinthefaceofpoliticalchanges,orotherupheavalsisan
    importantcomponentofthiscapacity.Theroleofcivilsocietytoholdgovernmentaccountable,
    transmitfactualinformationtothepublic,andhelpupholdhighstandardsforservicesisvital.In
    addition,NGOsplayapivotalroleindeliveryofservicesforthemostvulnerable,andwhilecivilsocietyis
    increasinglyactiveandengaged,thereisaneedtobuildtheircapacitytobeselfsustaining.Finally,the
    privatesectorhasgreatpotentialtobeaconstructiveandimportantpartnerininvestinginservice
    deliveryandasacivilsocietyadvocate.ThisIRwillseekincreasedprivatesectorinvestmenttoward
    improvingsupplyanddemandforhighqualityservices.

    SubIntermediateResult2.3.1:Governmenteffectivenessandaccountabilityindeliveringservicesatthe
    locallevelimproved
    PotentialactivitiesunderSubIR2.3.1includeprovidingtechnicalassistancetoincreasethe
    accountability,supervision,andadherencetostandardsoflocalgovernmentinstitutionsthatprovide
    services,withspecialattentiontohowthoseservicesreachthepoorandvulnerable.Assistancewillbe
    providedtolocalgovernmentstoplanandbudgetforessentialservicesinhealth,education,sanitation,
    andwater,andtobuildcapacity,transparency,andpublicresponsivenessintotheprocess.ThisSubIR,
    linkingwithIR4.2,willdevelopevidencebaseddecisionmakingforexampleincreaseduseofmaternal
    andperinatalaudittoimprovepolicyrelatedtomaternalandnewborndeathsatthedistrictlevel.Itwill
    alsosupportthelocalgovernmentscapacitytolistentoandrespondtocitizenfeedback.Technical
    assistancewillalsoincludedevelopingthecapacityoflocalgovernmentstoimplementnationalgender
    mainstreamingdirectivesandundertakegendersensitiveplanningandbudgeting.

    InvestinginIndonesia 27
    SubIntermediateResult2.3.2:CSO/NGOsdemandforandsupplyofbetterservicesstrengthened
    Potentialactivitiesunder2.3.2includebolsteringtheroleofnewsoutlets,includingsocialmedia,to
    informcitizensofminimumstandardsfortargetedservices,provideaplatformfortheirinput,andhold
    servicedeliveryentitiesaccountable.InterventionswillincreasethecapacityofNGOs/CSOstonotonly
    betterdeliverbasicservicesandotherwiseachievetheirownorganizationalgoals,butalsotobecome
    strongerwatchdogsandadvocatestothegovernmentforimprovedaccesstoandqualityofservices,
    accordingtotheirareaofexpertiseandrepresentationalcapacity.NGOs/CSOsthatfocusonmaternal
    andchildhealth,water,education,includingjobtraining,andenvironmentalstewardshipwillallbe
    prioritized.Allinterventionswillfocusonorganizationsthatworkatthelocallevel.

    SubIntermediateResult2.3.3:Publicprivatepartnershipstoenhancelocalservicedeliveryexpanded
    TheprivatesectorhasthepotentialtocontributetogoalswithinthisDOandothers,throughinnovation
    andadvocacy,highstandardsfortheirservicesorproductsandpotentialforscalability.Potential
    activitiesunderSubIR2.3.3includepartneringwithprivatesectorcompaniesandfoundationsthat
    deliverservicesatthelocallevelandinnovativefinancingforwaterandsanitation,expandedand
    promoted.OtherkeypartnershipsinsupportofDOindicatorswillalsobedeveloped.

    Figure4DevelopmentObjective3:ResultsFrameworkGraphic

    InvestinginIndonesia 28
    DEVELOPMENTOBJECTIVE3:GLOBALDEVELOPMENTPRIORITIESOFMUTUAL
    INTERESTADVANCED

    ThisDOtargetsseveralglobaldevelopmentprioritiesthatUSAIDwilltackleintandemwiththeGOI.The
    prioritiesinclude:controlofinfectiousdiseasesofnational,regional,andglobalimportance;
    conservationofIndonesiasunparalleledbiologicaldiversity;mitigationofrapidlyincreasinggreenhouse
    gasemissions;andbuildingresiliencetoclimatechangeimpactsandnaturaldisasters.

    InthecontextofIndonesia,thefirstthreeIRsofthisDOareimportantareaswhereinternalandexternal
    pressuresaremutuallyreinforcing.Diplomaticpressureimposedbytheinternationalcommunitymay
    supportIndonesianleaderstomeetcommitmentsmadeininternationalforums(Putnam,1988).For
    example,theMinisterofHealthofIndonesianowchairstheboardoftheGlobalFund,yetthereisstill
    muchtobedonetoconquerHIV/AIDS,malaria,andtuberculosisinIndonesia.Indonesiasengagement
    onthesediseaseswithothercountriesbilaterallyandatinternationalforumsisexpectedtoimproveits
    applicationofinternationalstandardsofcare.Conversely,domesticpoliticalsuccesswillempower
    Indonesiatoleadtheregioninimportantcrossborderreformsnecessarytoconfronttheseissues
    globally,thusstrengtheningtheirdomesticsuccess.Indeed,ifIndonesiawinsthebattletohalt
    infectiousdisease,reducecarbonemissions,andpreservebiodiversity,theprobabilityoftheglobal
    communitysucceedingintheseendeavorsisincreased.

    InfectiousDisease,Biodiversity,andClimateChange
    Infectiousdiseasessuchastuberculosis(TB),HIV/AIDS,lymphaticfilariasis(LF),andpandemicinfluenza
    areserioushealthburdensinIndonesia.GiventhesizeandmobilityofIndonesiaspopulation,these
    serioushealthissuesarenotjustsignificantproblemsforIndonesiabuthaveglobalimplications.
    Althoughratesarebelow1%nationally,HIVprevalenceismuchhigherinkeyaffectedpopulations:
    femalesexworkers,menwhohavesexwithmen(MSM),peoplewhoinjectdrugs,female
    partners/wivesofmaleclientsofsexworkers,andtransgenderpersons.HIVprevalenceishighestin
    Papua(2.4%),whereitisageneralizedepidemicexacerbatedbygenderbasedviolence.Withlarge
    miningandfishingindustriesandhighnumbersofmigrantworkers,Papuaispotentiallyasourceof
    increasedHIVtransmissionthroughouttheregion.SextraffickingalsocontributestohighHIV
    prevalence.IndonesiahasthefifthhighestTBburdengloballyandranksamongthetop10formulti
    drugresistantTB(MDRTB).LFandsoiltransmittedhelminthiasis(intestinalworms)areendemic
    throughoutIndonesia.Indonesiaaccountsfor10%oftheworldsatriskpopulation,withanestimated
    125200millionpeopleatriskforLF.Soiltransmittedhelminthesareanationalproblemaffectingchild
    health,growth,anddevelopment.Indonesiaisoneoffivecountriesstillendemicforavianinfluenza
    (AI).Thevirusremainswidespreadacrossthemassivepoultrysectorandcontinuestocausehuman
    illnessanddeath.IndonesiahasmorehumanAIcasesthananywhereelseintheworldandthehighest
    casefatalityglobally.

    IndonesiaisaprioritycountryoftheU.S.GovernmentsGlobalClimateChangeInitiativebecauseofits
    highgreenhousegasemissions(thirdhighestintheworld),globallysignificantforests(thirdlargest
    tropicalforestcovercontaining10%ofglobalforestcover)andlargepopulationthatishighlyvulnerable
    totheimpactsofclimatechange.Indonesiasforestsandoceansarealsoamongtheworldsrichestin
    termsofbiodiversity.Indonesiaisafocalpointforspeciesprotection,especiallyforcharismatic
    mammals,birds,reptiles,coral,andfish.However,witheconomicincentivesthatfosterwidespread
    deforestation,landconversion,andunsustainableextractionofterrestrialandmarineresources,the
    viabilityofthesespeciesandtheirhabitatsareincreasinglyatriskasevidencedbytherecentlistingof

    InvestinginIndonesia 29
    5,015IndonesianspeciesatriskforextinctionontheInternationalUnionforConservationofNature
    (IUCN)RedListforIndonesia(2012).

    Fortunately,forthefirsttimeinrecenthistory,theGOIandcorporationsexpresswillingnessto
    holisticallyconfronttheissues,whichrequiresheightenedmanagementandstewardshipaswellas
    closeengagementwiththeprivatesectortosustainablyandeconomicallybenefitfromIndonesias
    robustresourcebase.BoththeU.S.andIndonesiangovernmentsagreethatIndonesiasforestsand
    marineecosystemsareglobaltreasuresundertremendousthreat.IfIndonesiafailstoconserveand
    protectthem,globallysignificantbiodiversitywillbelostandglobalcarbonemissionswillcontinueto
    accelerate.StronglinkagesbetweenIRs3.1and3.2especiallywithregardtocolocationare
    anticipatedforterrestrialbiodiversityconservationandsustainablelandscapesmanagementactivities.

    Progressonmutuallyagreeabledevelopmentinterestswillbeacollectivebarometerofthe
    strengtheninganddirectionofourpartnership,reflectinghowournations,together,interactonaglobal
    scale.RecognizingIndonesiaasarisingeconomyandemerginggloballeader,SouthSouthand
    TriangularCooperation(SSTC)hasbeenincludedasacomplementaryeffortinthisDO.ItiswithinU.S.
    interesttosupportIndonesiaasarelevant,effectivedonorpartnerandmutuallybeneficialtodoso.

    Theadditiveimpactofstrengtheningourpartnershipsandcoinvestmentsinhealth,education,and
    environmentwillenhanceourbilateralrelationshipandleadtoeconomicandsocialtransformation.
    ThiswillbereflectedinimpactssuchascontributingsubstantiallytotheglobaltargetsforcontrollingTB
    andMDRTBandsavingthousandsoflives,sustainingmillionsofhectaresofcoastlinesandforests,
    improvingterrestrialandmarinehabitatstewardshipforconservationofbiodiversity,reducingtherisks
    ofclimatederivedandnaturaldisastersandassistingIndonesiatobearesponsiblememberofthe
    globalcommunity.

    INTERMEDIATERESULT3.1:CONTROLOFINFECTIOUSDISEASESOFREGIONALANDGLOBALIMPORTANCEIMPROVED
    ThisIRwillworktostrengthentheGOIscommitmentto,andcapacitytoparticipateresponsiblyin,
    regional/globaleffortstocontrolthespreadofinfectiousdiseasesandpreventepidemicoutbreaks,
    notablyHIV/AIDS,TBandMDRTB,pandemicinfluenza,emergingpandemicthreats,andneglected
    tropicaldiseases(NTD).Indonesiamustbeabletorespondeffectivelytothethreatofinfectious
    diseasesandtoprotectthehealthofitscitizens.Indonesiaisalsopoisedtotakearegionalandeven
    globalleadershiproleinprevention,controlof,andresponsetoinfectiousdiseasethreats.Cuttingedge
    USGassistancewillbeprovidedincludingdevelopingandtestingapproachesandtechnologiesthat
    showpromiseforregionalandglobalreplicationtoimprovediagnosis,treatment,andsurveillanceof
    infectiousdiseasethreats.

    SubIntermediateResult3.1.1:Internationaldiseasecontrolstandardsandnormsadopted
    USGsupportsandstrengthensIndonesiaspositionasaregionalandgloballeaderindiseasethreat
    managementandresponseandencouragestheuseofinternationalstandardsfordiseasecare
    treatment(especiallyforTB,influenzaandacuterespiratoryinfections,NTDcontrol,maternalandchild
    health,andHIV).PotentialactivitiesunderthissubIRincludeprovidingtechnicalassistancetoavariety
    ofministriesandactors.Theseinclude:assistancetolocalpharmaceuticalmanufacturerstoobtain
    WHOprequalificationforproducingsecondlineTBdrugstohelpaddresstheglobalshortageofthese
    essentialmedicines;assistancetotheMinistryofHealthforadoptionofglobaldewormingpoliciesand
    rollingoutanationalstrategyfordewormingchildren;assistancetotheMinistryofHealthtoscaleup
    applicationofInternationalStandardsofTBcareamongpublicandprivatesectorproviders;andsupport
    totheNationalInstituteforHealthResearchandDevelopmenttoimprovelaboratorybiosafety.Finally,

    InvestinginIndonesia 30
    technicalsupportwillbeprovidedtotheMinistriesofAgricultureandHealthtoconductresearchto
    characterizeinfluenzastrainsthroughinternationalstandardsandpracticeswhiletrackinginfluenza
    viruseswithpandemicpotentialandtodevelopeffectivevaccines.

    SubIntermediateResult3.1.2:Prevention,surveillanceandtreatmentcapacitystrengthened
    IndonesiasachievementofMDGgoalsiscriticalforglobaltargetstobeachieved.USGprovides
    targetedsupporttoimproveIndonesiasabilitytomonitor,prevent,andtreatinfectiousdiseasesof
    globalimportance.ActivitiesunderthissubIRincludetechnicalassistancetoincreasethecapacityfor
    laboratorydiagnosticsandincreaselocalcapacitytoimproveprevention,diagnostics,andtreatmentfor
    influenzaandemergingdiseases,HIV,andTB.ForselectedNTDs,USGwillprovidetechnicalsupportto:
    controlandeliminationeffortsincompliancewithinternationalstandards;strengthenepidemiological
    capacitywithintheMinistriesofHealthandAgriculture,andintheacademicsectortorespondto
    outbreaks;strengthenthediagnosis,management,andtreatmentofTB,includingMDRTBandHIVTB;
    andimproveavailabilityanduseofoxygentherapy,includingdevelopmentofanewtrainingmanual
    andrepairingandreplacingequipment,totreatsevere,acuterespiratoryinfections.

    SubIntermediateResult3.1.3:Engagementinkeyglobalhealthdialoguesstrengthened
    USGinvestmentsengageIndonesianhealthleadersinhighlevelglobaldialoguesonstrategicinitiatives
    andpolicydevelopmenttomotivateIndonesianpolicymakerstocommittoandassurehighquality
    controlprogramsthroughengagementwiththeirtechnicalpeers.SuchIndonesianinternational
    engagementwillprovidevaluableinsightandexperienceforothercountries,includingtheU.S.,aswell.
    ThisincludesmembershipinglobaltechnicalpartnershipssuchastheStopTBPartnership,WorldHealth
    OrganizationTBworkinggroupsandtheGlobalAlliancetoEliminateLymphaticFilariasis,which
    leveragesIndonesiasleadershipandcommitmenttoeliminatingNTDsandadherencewithglobal
    standardsfordiseasecontrol.

    INTERMEDIATERESULT3.2:MARINEANDTERRESTRIALBIODIVERSITYCONSERVED
    ThisIRwillestablishstrongerincentivesforbiodiversityconservationandstrongergovernanceand
    regulatorycontrolstoaddresstheprincipalthreatstobiodiversityanddriversofhabitatdegradation
    (USAID/Indonesia,2013b).Withintheseecosystemsparticularlycoralreefsandtropicalrainforests
    Indonesiapossesseswhatisgenerallyrecognizedasoneofthegreatestconcentrationsofbiodiversity
    onearth.However,overdecadesofresourcedrivendevelopment,Indonesiahasexperiencedmassive
    landusechangeandoverexploitativefishingpracticesthatresultedinirrecoverabledamageto
    ecosystemscrucialnotonlytoorangutan,tigers,rhinos,elephants,sharks,rays,andothercharismatic
    species,butalsotosmalleranimalsandplantsendemictoand/orsignificantlyrepresentedinIndonesia
    anduniquetotheworld.

    BasedonrecentevaluationsofUSAIDsongoingforestryandmarineprogramsinIndonesia
    (USAID/Indonesia,2012b,2013e),andthroughtheapplicationofyearsofaccumulatedinternational
    bestpracticeexperience,USAIDhasidentifiedareasnecessarytoachievesignificantconservation
    progress.WiththeMinistryofMarineAffairsandFisheries(MMAF),localgovernments,thefishing
    industry,communities,andotherstakeholders,wewilladdressthekeythreatofoverfishingduetopoor
    regulation,weakenforcement,inappropriatefishingpractices,andpoorsystemsmanagement.Based
    onlessonslearnedunderthecurrentstrategy,thegovernanceandincentivestructureforsustainable
    marineresourcemanagementneedstoberecastusingaseascapeapproachasanorganizingplatform
    thatencompassesbothmarineandcoastalareasandworkswheretheinterestsoflocalcommunities,
    privatesector,andlocalandnationalgovernmentscompete.

    InvestinginIndonesia 31
    SubIntermediateResult3.2.1:Sustainableeconomicvaluesadvanced
    Tofurthertheimprovementofmarineandterrestrialbiodiversityconservation,advancementof
    sustainableeconomicvaluefromappropriatenaturalresourcestewardshipisessential.Sucheconomic
    advancementisimperativetoaddressindirectthreattobiodiversitythatresultsfromIndonesias
    developmentprioritiesoveremphasizingeconomicgainthroughresourceextractionoversustainable
    ecosystemstewardship.ToachievethissubIR,potentialactivitiesincludeincentivizingconservationby:
    developingappropriatemodelsforsustainablerevenuesandfinancing,suchasequitablepaymentfor
    ecosystemservices,ecotourismandmanagementandrestorationconcessions;empoweringwomens
    leadershipinthedevelopmentofsustainableeconomicstrategies;promotinginclusivepublic,private
    andcommunitybusinessdevelopment;andsupportinginternationalsustainabilityinitiatives,suchas
    theMarineStewardshipCouncil.Otherillustrativeactivitiesincludestrengtheningregulatoryregimes
    fortransparent;evidencebasedfisheriesandforest/landusegovernance(e.g.,regulations,licensing,
    andenforcement);strengtheningtheoperationofportstomonitor,control,andsurveyfishcatchand
    movement;reducingillegal,unreported,andunregulatedfishing;reducingillegallogging;supporting
    improvedmarineandterrestrialsustainablecertificationschemes;andincreasingenforcementof
    marineandforestmanagementregulations.Finally,tomaximizecommunitysustainableeconomic
    benefitsfromforest/mangroveecosystems,coastalhabitats,andnearshorereeffisheries,USAIDwill
    investineffortsthatoptimizevalueaddedandcontributionofnaturalcapitalfromsustainable
    terrestrialandmarinenaturalresourceproduction,processing,andmarketing,tothosecommunities,
    especiallythroughdeepeningengagementwiththeprivatesector.

    SubIntermediateResult3.2.2:Threatstobiodiversityreduced
    Toeffectivelyconservemarineandterrestrialbiodiversity,activitiesunderthissubIRaddressdirectand
    indirectthreatsidentifiedthroughtheBiodiversityandTropicalForestsanalyses,aswellassiteselection
    reportsandnumerousrecentlyconductedactivitylevelanalysestofocusinterventionsonhigh
    biodiversityconservationvalueterrestrialandmarineecosystems.Threatsincludeacceleratedmarine
    andcoastalconversion,unsustainableanddestructiveterrestrialandmarineresourceextraction,
    corruptionandweaklawenforcement,andinadequategovernmentcapacity.Keyinterventionswill
    buildonproveninvestmentsandlessonslearned,suchas:supporttolocal(districtandprovincial)and
    nationalgovernmentstoadoptandimplementpoliciesandpracticesthatconservebiodiversity;support
    toNGOsandCSOsthatarepromotinglocalgovernmenttransparency,communitydevelopment,local
    rights,anddiversifiedincomesthroughsustainablecommunitybasedmarineandterrestrialresource
    management;integratedlandscapeandseascapeplanning;spatialanddevelopmentplanningatthe
    districtandprovinciallevel;mappinganddataintegration;andbiophysicalmonitoring.Furthermore,an
    essentialcomponenttothisworkisimprovingmanagementofprotectedareasbyboththeMinistriesof
    ForestryandMarineAffairsandFisheries,associatedlocalgovernments,andcommunities,andensuring
    thatmanagementprotectstherolesandinterestsofbothmenandwomeninaffectedareas.

    SubIntermediateResult3.2.3:Engagementinkeyconservationdialoguesstrengthened
    Anessentialcomponentinimprovingmarineandterrestrialbiodiversityisstrengtheningthe
    engagementofGOIand/orunderrepresentedsectorsininternationalconservationforums.Toachieve
    thissubIR,activitieswillincludetheexpansionofIndonesianparticipationinnationalandinternational
    dialogueandtechnicalexchangesonbiodiversityconservation.Furthermore,effortswillbemadeto
    increasethecapacityofIndonesiancounterpartstocommunicatebiodiversityconservationissuesof
    globalsignificance.TheseeffortswillallowIndonesiatogrowasaleaderinbiodiversityefforts,andalso
    providevaluableexperienceandinsightstoothercountries,includingtheU.S.

    InvestinginIndonesia 32
    INTERMEDIATERESULT3.3:CLIMATECHANGEMITIGATIONANDRESILIENCETOSUPPORTAGREENECONOMY
    STRENGTHENED
    ThisIRmitigatestheimpactofIndonesiasrapidlygrowingpopulationandeconomyonrisingcarbon
    emissionsandincreasingtheresilienceofvulnerablecommunitiestotheadverseimpactsofglobal
    climatechange.Asthethirdlargestglobalemitterofgreenhousegases,Indonesiahasastrong,vested
    stakeincontrollingitscarbonemissions.Risingenergyproductiontosupportagrowingeconomy
    (WoldeRufael,2004)willsooncontributemoretoIndonesia'scarbonemissionsthanforestryand
    peatlandconversionunlessmajorpolicyshiftsandinvestmentclimateimprovementsdrive
    transformationinenergyefficiency,renewablepowerproduction,efficientpowermanagement,and
    smartcleantransportsolutions.Inacountrycomprisedofover17,000islands,risinggreenhousegas
    (GHG)concentrationswillleadtoincreasedclimatevariabilityandchangethatwillstressdevelopment
    progressthroughmorefrequentextremeweatherevents,suchasfloodsandlandslides,andslower
    onsetimpacts,suchasincreasedoceanacidityandsealevelrise.Whencompoundedwithmyriad
    naturaldisastersassociatedwithIndonesia'slocationintheRingofFire,theimpactsofthese
    phenomenawillunderminebroadersocialandeconomicdevelopment.Understandingthelink
    betweenGHGemissionsandclimatechangeimpactsmustbeextendedtoabroaderaudienceinorder
    todevelopastrongdomesticconstituencyinfavorofconservationandreducingemissions.TheGOI
    recognizestheneedtoaddressthisglobalthreat,buteffortstodatearetentativeandnotyetfirmly
    anchoredinlegislationandimplementationtoensureachievementofcalculated,welldefinedtargets.
    ThenextfiveyearswillsetthefoundationforIndonesiasfuturecarbonfootprintifsignificanthigh
    profileprogresscanbemadeonlowemissionsdevelopment.

    ThisIRextendsnaturalresourcegovernanceacrossgovernmentandcivilsociety,especiallyin
    communitiesthatareaffectedbyGCC.Alsovitalareprivatesectoractivitiestoreduceemissionsand
    impactsoncarboncriticallandscapes,suchastropicalforests,peatlands,andmangroves.Tofacilitate
    cleanenergyinvestments,especiallyinrenewablepowerproduction,energyefficiency,andclean
    transportarevital.ManyactivitiestobeundertakeninthisIRwillcontributetotheU.S.Indonesia
    agreementonEnhancingCapacityinLowEmissionsDevelopmentStrategies(ECLEDS).

    SubIntermediateResult3.3.1:Foundationforlowcarbonenergysystemsstrengthened
    Indonesiaisoneof20ECLEDScountrieswithwhichUSAIDworksglobally,underscoringtheimportance
    ofeffortstostrengthenclimatechangemitigationandresiliencetosupportgreeneconomic
    developmentandconfirmingthisasadevelopmentchallengethatisofmutualinteresttobothnations.
    UnderthissubIR,potentialactivitieswillfacilitatecleanenergyinitiativessuchasthebuildingof
    capacityoflocalgovernmentstodevelop,resource,andimplementlegallymandatedintegrated,
    evidencebasedlowcarbonenergydevelopmentplans.PotentialactivitieswillsupporttheGOI
    inestablishingimplementationguidelines,fundingmechanisms,standards,monitoring,coordination,
    and investmentpromotionschemesthatreducebarriersto,andincentivizerenewableenergy
    developmentsoverfossilfuelbasedsolutions,promotinginvestmentinenergyefficiencytohelpreduce
    overallenergyconsumptionandimplementationofcleantransportsolutionsthatcandirectlyreduce
    emissions.Technicalsupportandtrainingwillbeprovidedtoprojectdevelopers,utilities,governance
    authorities,commercialbanks,andgovernmentfinancialinstitutionsinpreparingandreviewinghigh
    qualityengineeringbased,financiallyviableproposalsforrenewableenergyandenergyefficiency
    projects.Assistancewilldevelopfinancingapproaches,tools,andproductsthatwillunlockGOI,private
    sector,anddonorfundstofacilitateinvestmentinrenewableenergyandenergyefficiency.
    Communicationseffortswillaimtochangebehavioraboutcleanenergy,environmentalissues,low
    carbonapproachesaswellasreformonsubsidiesandotherkeyenergypolicyissuesdirectlyimpacting

    InvestinginIndonesia 33
    cleanenergydevelopment.Finally,potentialactivitieswillincludedevelopingpartnershipsand
    technicalexchangeswithIndonesianandU.S.universities,thinktanks,tradeassociations,research
    institutions,utilitycompanies,andtheprivatesector,focusedontransferofbestpracticesand
    deploymentofproven,marketreadycleanenergytechnologiesnewtoIndonesia.Trainingandlocal
    institutioncapacitydevelopmentwilllinkthepartnershipstoresearch,data,andscienceandtechnology
    (S&T)needs.

    SubIntermediateResult3.3.2:Lowcarbonlanduseandforeststewardshipenhanced
    ThissubIRstrengthensclimatechangemitigationbyprotectingandmanagingforeststosupport
    sustainablelandscapesandlowcarbonlanduse.Potentialactivitiesincludeshiftingincentivesthat
    encourageunrestrictedgrowthtothosethatfavorconservation.Keyinitiativestoachievethisparadigm
    shiftincommunity,GOI,andcorporatepracticearesimilartobiodiversityconservationinitiativeswithin
    thisDO,andinclude:developingappropriatemodelstomaximizeprofitabilityandreduceimpact;
    encouragingfinancingforsustainableresourcemanagement;encouraginggreeneconomicactivitysuch
    asequitablepaymentforecosystemservices,ecotourism,communitybasednaturalresource
    management,andforestrestorationconcessions;andcatalyzingthedeploymentofvoluntary
    internationalsustainabilityinitiativesandmaximizingtheconservationvalueofanalogoushomegrown
    initiativeswithwhichallresourceextractiveindustriesmustcomply.Finally,activitieswillinclude
    supportingpublicparticipationmechanismsespeciallythosethatrecognizeandstrengthenwomens
    leadershipinthissectorforlocallandusedecisionmakingprocesses.AdoptionofGOIuseofS&T,
    suchasremotesensingtomonitorforestcoverchange,willbefacilitatedtoimprovetheutilizationof
    scientificandforensicevidenceindecisionmakingandenforcement.

    SubIntermediateResult(SubIR)3.3.3:Adaptationandriskmanagementincreased
    Animportantcomponentinstrengtheningclimatechangemitigationandresilienceissupportto
    adaptationefforts,includingtheexpansionofclimatechangevulnerabilityandadaptationassessments
    whilesupportingimplementationofcommunityanddistrictactionplans.Evidenceshowsthatclimate
    relateddisastersareontherise,andthatpreparingcommunitiesresultsinbothphysicaland
    economicalresilience.PotentialactivitiessupportGOIauthoritiestodevelopgendersensitivedisaster
    preparednessplans.USAIDwillengagedisastermanagementauthorities,vulnerablemunicipalities,
    researchinstitutes,andprovincialuniversitiestoprovidetechnicalservicesforinformingpolicy
    decisionsandguidingclimatechangeadaptionactions.PartneringwiththeGOI,particularlythe
    DisasterManagementAgency(BNPB),otherdonors,andNGOswillraisepublicawarenessofpotential
    climatechangeimpactsandgainresourcesandsupportforclimatechangeadaptationandriskresilience
    actions.Finally,closelyrelatedeffortswillbeconductedinrelationtodisasterriskreductionwiththe
    GOItodesign,developandimplementaGlobalFlashFloodGuidanceSystem,anendtoendsystemthat
    providesthedataandinformation,analyses,communications,andprotocolsforaccurateandtimely
    warningsofflashfloods.

    SubIntermediateResult(SubIR)3.3.4:Engagementinkeyclimatechangeandresiliencedialogues
    strengthened
    USGinvestmentsengageIndonesianclimatechangeleadersbyincreasingtheircapacitytocommunicate
    onglobalclimatechangeanddisasterresilienceissuesintermsofpolicydevelopmentand
    implementation.PotentialactivitieswillmotivateIndonesianpolicymakerstocommittoandassure
    highqualitycontrolprogramsthroughengagementwithinternationaltechnicalpeers.Theywillalso
    enableothercountries,includingtheUS,tolearnfromIndonesiasconsiderableexperience.

    InvestinginIndonesia 34
    INTERMEDIATERESULT3.4:GOISOUTHSOUTHANDTRIANGULARCOOPERATIONSTRENGTHENED
    AsIndonesiacontinuestobenefitfromdevelopmentassistance,itisalsoquietlyembarkingonitsown
    programofprovidingforeignassistance(USAID/Indonesia,2013d).Overthepast10years,theGOI
    estimatesthatithasprovidedapproximately$42millioninSouthSouthandTriangularCooperation
    (SSTC)programs.Inadditiontotechnicalcooperation,Indonesiahasdeliveredmorethan$8millionin
    humanitarianassistanceinthepasttwoyearsalone.IndonesiaextendedaidtoJapanafterthe2011
    earthquakeandtsunami,toAustraliafollowingtheQueenslandfloods(News.com.au,2011),toNew
    ZealandaftertheChristchurchearthquake(NewZealandEmbassy,2011)aswellastoHaiti(Antara
    News,2010),Pakistan(Rogers,2010),Turkey(Nugrohoetal,2011)andothers.Ofthe$8million,within
    ASEAN,Indonesiaprovidedacombined$3.1millionofgrantstosixfloodaffectedcountriesin2011.In
    2013,theIndonesiangovernmentprovided$1milliontothegovernmentofthePhilippinesforthe
    victimsoftyphoonBopha(AntaraNews,2012).

    IndonesianSSTCstrengthenscooperationamongcountriestoexploitmutualopportunity,promote
    collectiveselfreliance,acceleratedevelopment,andstrengthensolidarity.IndonesiasSSTCisexpected
    tobeprioritizedoneconomicdevelopmentthatpromotesinternationaltradeandstrengthens
    internationaldiplomacy.ToimplementtheGOIsSSTCStrategyGrandDesigndocument(20112025),
    fourtaskforcesundertheIndonesianNationalCoordinationTeamhavebeenestablished:(1)legaland
    institutionalframework;(2)fundingmechanism;(3)programdevelopment;and(4)amonitoringand
    evaluationandinformationsystem.BoththeGOIandinternationaldonorswelcomeU.S.involvement
    toincreaseIndonesiascapacityasanassistanceprovider.

    AstrongIndonesiaisanincreasinglyinfluentialregionalandglobalpartner,interestedinissuesweboth
    careabout,suchasdemocracy,regionalintegration,peace,andstability.Indonesiacanstandoutasa
    modelofinclusivedemocracyapproachestotheMuslimworld,serveasapeacebrokerinvarious
    internationalconflicts,andactasaninterlocutorinthedialoguebetweentheMuslimworldandthe
    West.Indonesiacanalsoprovideleadershipbyfullyincorporatingwomenandgirlsintodiplomatic,
    security,anddevelopmenteffortsasbeneficiariesandasagentsofpeace,reconciliation,development,
    growth,andstability,astheUSGgovernmentiscommittedtodothroughitsNationalActionPlanfor
    Women,Peace,andSecurity.

    USAIDsupportthroughthisIRwilllaythegroundworktohelpbringforthanIndonesiaInternational
    DevelopmentAgency(IndoAid),anenduringlegacyofmorethan60yearsofpartnership.Thereare
    alsoopportunitiestocoordinatetriangularcooperationactivitiesbetweenUSAID/Indonesiasbilateral
    assistanceprogramwithUSAID/RDMAsregionalassistanceprogram(andlinkageswithotherAsian
    emergingdonors).AproposedIndoAidcouldassumeresponsibilityforallofIndonesiasoutgoing
    internationaldevelopmentcooperationandassistance,coordinatepolicyformulationonIndonesian
    developmentcooperationandensureaidcoherenceincooperation.

    ThisIRsupportsIndonesiasroleasaleaderandemergingdonorandreflectsnewwaysofdoing
    business.ButitisnotintendedtoonlysupportthethreeareasofglobalconcerninthefirstthreeIRs.
    ThisIRaddressesakeycomponentoftheoverallresultsframework,whichisapartnershipbetweenthe
    U.S.andIndonesiaondevelopmentprioritiesthatsucceedsthetraditionaldonorrecipientmodel.
    Effortstoadvancetheseprioritiesadduptohigher,collectiveimpactsreflectiveofthetransformation
    oftheU.S.Indonesianrelationshipandtheconvergenceofdevelopmentanddiplomacy.Indonesiahas
    receivedassistancerequestsfromdozensofcountriesaroundtheworld,andhowIndonesiarespondsis
    important.ThereisasignificantU.S.foreignpolicyinterestinhelpingIndonesiatobearelevant,

    InvestinginIndonesia 35
    effectivedonorpartner.Indonesiacangainathomewhenitshowcasesitseffortsinternationally,
    illustratingtheimportanceoftriangularcooperationtotheachievementofprogressinthisDO.

    SubIntermediateResult3.4.1:CapacityofNationalCoordinationTeamandimplementingagencies
    increased
    TostrengthenGOISouthSouthandTriangularCooperation,itisessentialthatweincreasethecapacity
    ofthenationalcoordinationteam,implementingagenciesandcooperatingorganizations.Specific
    activitiesincludeformingaprofessionalstaffexchangeprogrambetweenUSAID/IndonesiaandtheGOI
    NationalCoordinationTeamwhereeachagencycanhoststaffintheirofficestoshareexpertiseand
    collaboratetofacilitatepeertopeerlearningondonorbestpractices.Furthermore,activitieswill
    includethedevelopmentofcomparativestudiesofotherdevelopmentagencies,governancestructures,
    legislativeframeworksandorganizationalarrangements.Thiswillhelpwithdevelopinglegislation
    formingthefuturelegalbasisfordevelopmentcooperation.Thelegislationwillclearlysetoutthe
    countryscommitmenttodevelopmentcooperation,theoverallobjectivesofitsOverseasDevelopment
    Assistance(ODA)andimplementationandaccountabilityandtherolesandrelationshipsbetween
    ministriesandotheractorsindevelopmentcooperation.

    PotentialactivitiesunderthissubIRwillincludetechnicalassistancetotheNationalCoordinationTeam
    todevelopahumanresourcesplanforattractingandretainingqualityprofessionalsdedicatedonafull
    timebasistodevelopmentcooperationandtotheGOIforthepurposeofbuildingastrongindependent
    monitoringandevaluationsysteminlinewithinternationalstandards.Theproposedprogramwill
    includestrengtheningstatisticsandreportingofIndonesiandevelopmentaid,assistancetogovernment
    agenciesinorganizationofaidprojects,monitoring,efficiencyandimpactevaluation.Thismayinclude
    internationalpartnershipsforpreparationanddeliveryofuniversitycoursesondevelopmentaidthat
    areneededforeducatingfutureIndonesiandevelopmentpractitioners.

    SubIntermediateResult3.4.2:TriangularCooperationwithUSGexpanded
    AnotheressentialcomponentinstrengtheningGOISouthSouthandTriangularCooperationis
    expandingtriangularcooperationinpartnershipwiththeUSG.Thiswillincludeidentificationof
    trilateralcooperationprojectsinthirdcountriesthatwillbedesignedandimplementedbytheGOIand
    theU.S.incooperationwiththebeneficiarycountry.WhileUSAIDwillbetheleadUSGagencyforsuch
    projects,otheragenciesmayalsoparticipate.Suchprojectswillbeinareaswhereallthreecountries
    havemutualinterests,suchaspromotingcleanwaterandsanitation,reducinginfectiousdisease,or
    combattinggenderbasedviolence.MostwillprobablybeintheAsiaregion,butinitiativeselsewhere,
    suchaspromotingdemocracyintheMiddleEast,willalsobeconsidered.Otherpotentialactivities
    couldincludeassistancetoestablishanIndoAidFundinthenationalbudgetwithappropriationsin
    parliament.Moneyvestedinthefundcouldalsostemfromforeigngovernmentsfortrilateral
    cooperationandalsotheprivatesector/charitableorganizationcontributions.Fundswouldbeused
    fordevelopmentcooperationandassistanceexpenditures,andremunerationandallowancesofa
    GovernanceBoard.

    InvestinginIndonesia 36
    Figure5DevelopmentObjective4:ResultsFrameworkGraphic

    DEVELOPMENTOBJECTIVE4:COLLABORATIVEACHIEVEMENTINSCIENCE,
    TECHNOLOGY,ANDINNOVATIONINCREASED

    DespitethepromisingoutlookforIndonesiasfutureeconomicgrowth,thearchipelagolagsfarbehind
    mostothercountriesinitsinvestmentsinresearchanddevelopment(R&D).Indonesiaallocatesbelow
    0.08%ofitsGDPforR&Dinvestmentlessthan1/10theaveragefortheBRIC(Brazil,Russia,Indiaand
    China)economies(WorldBank,2012b).Asaresult,Indonesiaisnotadequatelyutilizingscience,
    technology,andinnovationtoadvanceitsdevelopmentgoalsandglobalcompetiveness.Yet,science,
    technologyandinnovationareamongthetopprioritiesfortheGOIasreflectedintheSecond(2010
    2014)andThird(20152019)phasesoftheirNationalMediumTermDevelopmentPlan(Governmentof
    Indonesia,2010).

    Indonesiasknowledgeandinnovationperformanceneedsimprovement,giventhecountrysposition
    comparedtootherMICsinglobalrankingssuchastheGlobalInnovationIndex(100of141)(INSEADand
    WIPO,2012),KnowledgeEconomyIndex(108of143)(WorldBank,2012b),andGlobalCompetitiveness
    Index(50of144)(Schwab,2012).Moreeffortisrequiredtoincreasethenumberofscientists,

    InvestinginIndonesia 37
    publications,patents,andfundsallocatedforR&D.Likeothercountriesaroundtheworld,veryfew
    womenareengagedinscience,technologyandinnovationinIndonesiaandmoremustbedoneto
    ensurethatwomenarerecruitedintothesefieldsandthatinvestmentsfairlyrespondtotheprioritiesof
    womenandgirls,especiallythepoorest.

    Table1:Indonesia'sscience,technology,andinnovationmetricscomparedtoBRICeconomies
    Indonesia Brazil Russia India China
    ResearchandDevelopmentas%GDP 0.08 1.17 1.25 0.76* 1.70
    Researcherspermillioncitizens 90 668 3,091 136* 863
    Patentapplications,resident 437 3,921 25,598 7,262 229,096
    Scientificandtechnicaljournalarticles 262 12,306 14,016 19,917 74,019
    Source:WorldBank,2012a.*Datafrom2007

    AnotherchallengeisthatIndonesiasknowledgesystems,levelofinternationalcollaboration,useof
    evidence,andtheutilizationoftechnologyhinderadvancementinkeydevelopmentalsectors,including
    environment,health,andeducation.ImprovingquantityandqualityofhumanresourcesinS&Twillbe
    thekeyforIndonesiatosuccessfullyaddressthoseissues.A2010Harvardreportstatedthatgivenits
    laggingscience,technologyandinnovationstatus,Indonesiawillbevulnerabletolosingitslabor
    intensivejobsanditsmosttalentedcitizenstoothercountriesbecauseoflowinvestmentandlackof
    skillintensivejobs.BothMcKinseyandBostonConsultingGroupcitesimilarfindings,reportingthat
    Indonesiawillexperiencemajorshortagesofqualifiedscienceandengineeringcandidatesinthecoming
    decade(Obermanetal,2012;Tongetal,2013).AccordingtotheOrganisationforEconomicCo
    operationandDevelopment(OECD),partoftheproblemisthatwhilethereareseveralresearch
    universities,thereisnotyetaworldclassuniversityabletoattractforeigntalent,animportantfactorin
    improvingstandards(2010).

    AllIndonesianfacultymembershavetomeetatleastthreeobligations:teaching,researchand
    communityservice.Mostofthemchoosetoteachprimarily,partlytotopuptheirlowsalaries.
    Moreover,manyteachingfacultyalsohavethedualresponsibilityofmanagingtheirinstitutions,which
    leadstopoorfinancialandorganizationalmanagement,alongwithalackofqualityassurancein
    instruction.Afewleadinguniversitiesexist,suchasUniversityofIndonesia,BogorAgricultural
    University,GadjaMadaUniversity,andBandungInstituteofTechnology.Theyhaveestablished
    collaborativeprogramswithprivatecompaniesandforeignuniversitiesthroughjointresearchand
    innovativeproductsdevelopment.Giventhatthenumberofregisteredhighereducationinstitutions
    exceeds3,000,thisisasmallnumberofuniversitiesatahighcaliberandisfarbelowIndonesias
    potential.

    Indonesianscientistsandresearchersalsohaverelativelylownumbersofscientificpublications,a
    hallmarkofscience.Whilethenumberofoveralljointpublicationshasbeenontherisesince2008,
    Indonesiacontinuestolaginoutputofcitabledocumentsandpublicationsinthetopinternational
    journals(Faisal,2012).Indonesiasuniversitiesandresearchersneedaccesstoglobalknowledgeandan
    improvedcapacitytoengageinscientificdiscourseonthegloballevel.Helpingtoincreaseinteractions
    betweenIndonesianscientistsandtheirforeigncounterpartsprovidesresearcherswithaccessto
    advancedtechniquesandmethodologiesandimprovestheoverallnationalcapacitytoconducttheir
    rigorousscience(Latikanetal2012).AccordingtoUnitedNationsEducational,Scientific,andCultural
    Organization(UNESCO),internationalcollaborationisanareawhereIndonesiamustimprove(2011).In

    InvestinginIndonesia 38
    ordertoaddressthisissue,theMinistryofEducationandCulturethroughtheDirectorateGeneralof
    HigherEducation(DIKTI)ispromotingresearchpublicationinaccreditedelectronicandprintedjournals
    bylinkingitwithprofessionalallowancesandEnglishskills.

    Indonesiaisinthetop20countriesoforiginforinternationalstudentsintheU.S.Inthe201011
    academicyear,justunder7,000IndonesianstudentsattendedU.S.universitieswhileabout200
    AmericansstudiedabroadinIndonesia.Bycomparison,inthesameacademicyear,over150,000
    ChinesestudentsstudiedintheU.S.and15,000AmericansstudiedabroadinChina(IIE,2012).
    Increasingthenumberofexchangesofscientists,students,fellows,andinternsinbothdirectionsis
    acentralgoaltheU.S.IndonesiaComprehensivePartnershipandapriorityforUSAID.TheState
    MinistryofResearchandTechnology(KementerianRisetdanTeknologi,RISTEK)hasindicatedthatone
    oftheirtopprioritiesistosendIndonesianstotheU.S.toearnhigherdegrees.Onlyabout16%ofall
    researchersinIndonesianinstitutes(highereducation,government,industry)holdPhDs(Haetal,2011).
    OtherRISTEKprioritiesincludepartnershipsinresearchforhealth,agriculture,environment,and
    biodiversityaswellasstrengtheningresearchinvestmentsthroughimprovedgrantingandprocurement
    processes,andtranslationofscientificdataintopoliciesandprograms.InthesekeyareasRISTEKhas
    invitedUSAIDtoassistinthedevelopmentoftheirnextS&Tmidtermstrategy.USAIDhasan
    opportunitytopromotetheintegrationofS&Tinthestrategyandprioritiesofotherministries
    (particularlytheeducationministry)toimprovetheS&TandinnovationecosysteminIndonesia.

    ThereisatremendousopportunityforIndonesiatoadvancescience,technology,andinnovationby
    buildingonitswealthofhumancapital,byaffirmativelyexpandingopportunitiesforpromisingfemale
    studentsandresearchers,increasingGOIinvestmentsandincreasingreadinesstocollaboratewith
    internationalpartnerstoenhanceitsachievements.In2010,theU.S.andIndonesiasignedaScience
    andTechnologyAgreementandheldaJointCommitteeMeetingonScienceandTechnologyin2012
    thatwillconvenebiannually.ScienceisahighlyvisiblecomponentoftheComprehensivePartnership
    wherediplomacyanddevelopmenthaveconvergedeffectively.Thereisstrongmomentumonboth
    sidesforexpandingthiscooperation.

    USAIDiswellpositionedtoacceleratethedevelopmentofscience,technology,andinnovationin
    Indonesiabyprovidingcatalyticinputsthatwillhaveeffectsacrossthescientificecosystem.Our
    programswillelevatelocalinstitutionsandleaderswhoareprovingthattheycanadvanceIndonesias
    developmentbyraisingthequalityofsciencetoaninternationalstandard.ThisDOwillputtoolsinthe
    handsofscientists,students,highereducationinstitutions,andtheprivatesectorthathavepotentialfor
    creatingIndonesiasownresponsetoitsmajordevelopmentchallenges.

    Ourassistancewillimproveresearchqualityandproductivity,linkagestobroaderscientific
    communities,andeducationopportunitiesandstandardsespeciallyforwomenstudentsandacademics
    andincreasethetechnicalandmanagementcapacityofresearchinstitutionstofostermoresustainable
    programsandapproachestodevelopmentissues.Itwillalsosupporttheevidencetopolicycontinuum,
    includingincreaseddemandfortheuseofscientificdataindecisionmakingandenabletechnology
    adoptioninkeysectorsofdevelopmentsuchashealthcare,energy,andclimate.

    INTERMEDIATERESULT4.1:ACADEMICCAPACITYANDSCIENTIFICRESEARCHSTRENGTHENED
    Robustsciencerequiresahealthyecosysteminwhichtothrive.Scientistsmusthaveaccesstoflexible
    andappropriatefunds,internationalknowledgenetworks,andtrainingandmustbeabletoconstantly
    improvetheirworkthroughacquisitionofnewskills,andthementoringofjuniorscientiststojointhe
    researchranks.ThisIRlooksatthreecriticalareasforIndonesiasresearchsystems:improvingmerit

    InvestinginIndonesia 39
    basedresearch,strengtheningdomesticandglobalknowledgeexchange,andimprovingqualityand
    opportunityattargetedresearchinstitutions.ThisIRfocusesonhighereducationelementsthatare
    criticaltotheoverallstrengtheningofIndonesiasacademicinfrastructure.

    SubIntermediateResult4.1.1Meritbasedresearchimproved
    ImprovingstandardsforcompetitiveresearchfundingisacorecomponentoftheS&Tinfrastructurein
    anycountryandakeymissingelementinIndonesia.Thequalityandintegrityofthismustberootedin
    meritbasedandtransparentreviewprocesses.TheIndonesianAcademyofSciences(AkademiIlmu
    PengetahuanIndonesia,AIPI)recentlyreleasedareportsponsoredbytheWorldBankandAusAIDon
    thecriticalneedforacentralandindependentscientificgrantmakingbody(Brodjonegoro,2012).An
    IndonesianScienceFund(ISF)wouldfillacriticalgapinIndonesiabybecomingthenationalcornerstone
    forexcellenceinsciencethroughawardingcompetitiveresearchawardstoIndonesianscientistsand
    institutions.Itwouldbemeritbased,allowforflexibilityofresearchactivities,andbeabletoaccept
    fundsfromprivate,public,andinternationaldonors.Otherreportshaveconfirmedthisneedin
    Indonesia,mostrecentlyaWorldBankreportthatdescribessystemicproblemsintheextremely
    fragmentedanduncoordinatedexpenditureofpublicresearchfundsinIndonesia(2013c).Theroadto
    establishinganISFtypebodyledbytheGOIisalengthyprocessthatrequiresreconcilingfragmented
    policies,dedicatedfunding,andlegalauthority.

    AnillustrativeactivityisthecreationofanIndonesianAmericanBilateralResearchFund.USAIDs
    intellectuallegacyinIndonesiawillbegreatlyadvancedbysupportingthevisionfortheISF.Asa
    precursorthatwillhelpbuildthefoundationforanISF,USAIDwillseektoestablishabilateralfundfor
    scientificresearchthatwilljointlyfundpriorityprojectsofmutualimportance.Thefundwouldbea
    naturalevolutionofexistingUSAIDprogramssuchasPartnershipsforEnhancedEngagementin
    Research(PEER)inScienceandHealthandwouldcontinuetoworkinconjunctionwithpartnerssuchas
    theNationalScienceFoundationandtheNationalInstitutesofHealth.Thisjointfundwouldbea
    mechanismnotonlyforfundingcollaborativescience,butalsofortransferringthetechnicalexpertise
    andbestpracticesofgrantmakingandadministrationofscientificfundingtoIndonesia.

    SubIntermediateResult4.1.2Domesticandglobalknowledgeexchangestrengthened
    Inadditiontosupportforhighqualityresearch,Indonesianscientistsandtheircolleaguesfrom
    academicinstitutionsacrossIndonesiamusthavegreateraccesstoglobalscience.Thisaddressesthe
    highlyfragmentedscientificecosystemandpreventsduplicationofeffortsnationwide.Akeyaspectis
    increasingexchangeswithforeignscientists.Throughgreaterconnectivity,Indonesiawillbeableto
    raiseitsprofileintheglobalscientificcommunity,whichwillaidAmericanandotherforeignscientiststo
    engageinexchangeswiththeIndonesianscientificcommunity.

    ApotentialactivityisadigitallibraryportalthroughwhichIndonesianuniversitiesandministriescan
    streamlinejournalpublicationpracticesandinformationsharingbytakingcontentonline.Indonesian
    scientistsalsorequireincreasedopenaccesswebportalswithsubscriptionstomajorinternational
    scientificdatabasesthatwouldgiveresearchersaccesstointernationalpublicationsandthelatest
    scientificadvancements.Theresultoftheseprogramswouldalsogreatlyincreasethenumberof
    internationalcollaborationsthatscientistscouldinitiateontheirown.Throughtheeducation,
    environment,andhealthportfolios,supportwillcontinuetobeprovidedtokeystakeholdersinthese
    fieldstocontinuetechnicalskilldevelopmentandtheircontributionstopriorityareassuchasclimate
    changeandinfectiousdisease.

    InvestinginIndonesia 40
    AnotherillustrativeactivitymaybeUSAIDsGlobalResearchandInnovationFellowshipNetwork(GRIFN)
    partnershipthatwillplaceAmericangraduateandundergraduatestudentsinS&Tfieldsinuniversities
    acrossIndonesia.

    SubIntermediateResult4.1.3Qualityandopportunityinhighereducationimproved
    ThissubIRfocusesonaddressinginstitutionalbarrierswhichstymieproductiveresearch,enhancing
    institutionalmanagementtostrengthenacademicquality,andincreasingtheproductionofqualified
    graduatesandscientificresearch.Creatingaresearchcultureinhighereducationinstitutionsisacritical
    need.Forexample,oneofthestrikingbarrierstocreatingmoreopportunitiesforhighereducation
    institutionsisthecurrentstrictregulationappliedbyDIKTIthatobligatesfacultytofocusonteaching
    dutieswithonlyasmallshareoftimeforresearch.USAIDcanworkwithDIKTIonregulationto
    incentivizethehighereducationinstitutionstocultivatearesearchcultureandprovidestudentsand
    facultywithincentivestoconductresearchandincreaselinkagesbytheapplicationoftheoretical
    knowledgeandpracticalresearchskills.Byfocusingonthequalityofhighereducationattargeted
    researchinstitutionsandincreasingtheopportunitiesavailabletoIndonesianscientists,USAIDwillmake
    asignificantdifferenceinhelpingraiseIndonesianscienceandresearchtoaninternationalstandard.
    Existingprogramswillbeadaptedinthefuturetobuildonlessonslearnedtoimproveteachingcurricula
    andskillsforadministrationandresearchcapacityattargetedresearchinstitutions.

    InIndonesia,asintherestoftheworld,genderimbalanceexistsinscience,technology,engineering,
    andmathematicseducation,wheremalestudentsoutnumberfemalestudentsduetoarangeof
    barriersforwomen.InordertoachieveUSGgoalstopromotegenderequalityandsupportthe
    leadershipofwomenandgirls,scholarshipsandexchangeopportunitieswillpromotefemalestudents
    andscientists.

    INTERMEDIATERESULT4.2:EVIDENCEBASEDDECISIONMAKINGENHANCED
    ThisIRfocusesonthreeareas:enhancingmechanismsforinfluenceofdataanalysisonpolicyand
    programs,improvinganalyticalcapacity,andstrengtheningadvocacyanddemandfortheuseof
    evidence.Thiscycleisperpetuatedbythedemandfromexpertsandnonexpertstoutilizethebest
    possibleevidencetomakethemostinformeddecisionspossible.EachofthesubIRsfocusonan
    elementofthecycleandthenecessaryrolesthat,takentogether,willhaveamajorimpacton
    Indonesiaspolicymakingonkeydevelopmentissues.

    SubIntermediateResult4.2.1Mechanismsforinfluenceofdataanalysisonpolicyandprograms
    enhanced
    TheuseofdataingovernmentandotherdecisionmakingstructuresiscentraltorealizingthisSubIR.
    Supportwillbegiventoconvenegovernment,university,andindustrypartnersinforumsaddressing
    commonconcernsthatrequiregreaterknowledgesharinginordertodiscuss,develop,andrefine
    policies.Currently,USAIDtechnicalprojectssupportarangeofdatacollectionandanalysisgeared
    towardinformingpoliciesandprogramming.Thisworkwillbeenhancedbygreatersupportfor
    improvedqualityofdata,systemsthateffectivelymanageandutilizedata,andassistancetoimprove
    theanalyticalcapacityofinstitutions.

    AnillustrativeactivityisthecreationofGovernmentUniversityIndustryRoundtablesthatenhancethe
    useofevidencefordecisionmaking.USAIDcanuseitsconveningpowertocreateaforumwhere
    stakeholdersfromgovernment,academia,andprivatecompaniescometogetherandshareperspectives
    onimportantissues.Besidesthisnewforum,weneedtoassesstheavailabilityofknowledgesharing
    mechanismswithinthegovernmentsystemthatUSAIDcanbuilduponandstrengtheninasustainable

    InvestinginIndonesia 41
    fashion.TheassumptionisthatRISTEKortheNationalResearchCouncil(DRN)hastheinherent
    functiontofacilitateandsupportcoordinationfordataanalysisonmakingpolicy.Thiscanalsobe
    utilizedtopromotecollaborativeresearcheffortsandinvestmentsbydifferentministriesinIndonesia
    whotendtobeworkinginsilos.Memberswouldbeinvitedtoperiodicallyparticipateonacurrentissue
    suchaswaterscarcity,agriculture,geneticallymodifiedorganisms,orhealthcareforruralareas.There
    isnosuchforuminIndonesiacurrently,thoughthistypeofexchangeisneededtowhichthismodel
    couldbeadapted.Anotheractivityissupportfordataanalysisanddiseasesurveillanceadvisorstosit
    withinkeydivisionsoftheMinistryofHealthtomentorstaffandhelpbuildbetterdatacollectionand
    analysisprocesses,systems,andskills.

    SubIntermediateResult4.2.2Analyticalcapacityimproved
    USAIDwillcontinueworkingwithacademicgroupsandinvestigatorstoproducequalityresearchin
    Indonesia.Butwithoutlinkstopolicy,theirworkwillnothaveanimpactondevelopment.USAIDwill
    helpempowerlocalentitieswhoarechampionsofsciencepolicyandwhocanplayaleadrolein
    producingevidencebasedexpertopinionsbydrawingonthebestresearchinIndonesiaandelsewhere
    toanswerimportantdevelopmentquestions.

    ApotentialactivityisthestrengtheningoftheIndonesianAcademyofSciences(AIPI)thatinhabitsa
    spacebetweenscientificexpertsandpolicymakersandplaysanimportantfunctioninsciencefor
    policy.AIPIiswellpositionedtoconveneobjectivepanelsofexpertstoanalyzeresearchfindingsand
    communicateinformedopinionsandrecommendationstodecisionmakingcenters.USAIDcanhelp
    buildAIPIscapacitytoproducehighqualityconsensusreportsontopicsrelevanttodevelopment,and
    tobringthoseexpertopinionstorelevantpolicymakersandthepublic.Inaddition,technicalassistance
    togovernmententitieswillmentorfocalGOIstafftobetterusedataforpolicyandprogramdecisions.
    Supplementedbyongoinginvestmentsinadvanceddegreetraining,thiswillalsocontributetoagreat
    depthofanalyticalcapacity.

    SubIntermediateResult4.2.3Advocacyanddemandfordatacollectionandanalysisstrengthened
    Alsoimportantistheneedtoenhancepublicunderstandingandtheroleofnonexpertsinadvocating
    forinformeddecisionmakinginhealth,forestry,marine,climatechange,energy,education,andother
    areasunderUSAIDsstrategy.Youngandearlycareerscientistsareparticularlywellplacedtodothisas
    theirrolewillonlyincreaseasfutureleaderswhoarethecrediblevoicesonimportantissues.

    AnillustrativeactivityisthecreationofaYoungIndonesianAcademyofSciences.Indonesiamustinvest
    heavilyinitsfuturescientificleaders.TheUSGandUSAIDarealreadyenhancingtheroleofyoung
    scientiststhroughtheU.S.IndonesiaFrontiersofScienceasymposiumthatfostersexchangesand
    partnershipsbetweenthetopearlycareerscientistsineachcountry.Theresultofbringingtogether
    theseexcellentyoungmindsfromacrossdisciplinesisnewscientificcollaborations,andithasalso
    cementedcriticalconnectionsamongayoungandimpressivegroupofIndonesianparticipantsand
    organizers.AformalizedYoungAcademyofScienceswillbuildonthissignificantachievementandwill
    beavaluableforumforthenextgenerationofyoungIndonesianscientistswheretheywillhavea
    collectivevoiceonissuesimportanttoIndonesiasfuture.Inaddition,ongoingsupportwillhelpcivil
    societydemanddatadrivenpoliciesandprogramsandadvocateatthelocalleveltohelpbuildthis
    demand.

    INTERMEDIATERESULT4.3:INNOVATIVEAPPROACHESTODEVELOPMENTUTILIZED
    ThisIRfocusesondrivingthedemonstration,adoption,andscalingofproventechnologiesandother
    novelapproachestodevelopment.Astrongfocusofthiseffortwillbeon(SubIR4.3.2)partnerships

    InvestinginIndonesia 42
    withtheprivatesector.ThisIRwillbuilduponthesuccessesUSAIDhasachievedinpartneringwith
    Indonesiatopilotnewtechnologiesinhealth,naturalresourcesmanagement,renewableenergy,
    energyefficiency,andagriculture.UnderthisIR,otheractivitiescouldincludeconductinganalysesthat
    identifycriticalobstaclesthathinderresearchandinnovationinIndonesia(e.g.rigidprocurement,weak
    institutionalsupport,orlackofintellectualpropertyrights)orpromisingnewopportunitiesin
    Indonesiasinnovationecosystem(e.g.universityincubators,technologyparks,orindustrialincentive
    programs).Assuminginnovationisunderstoodasaprocessconcludingwithnewproducts,services,
    methods,processestechnologies,orothercreationsthathavebeentakenintouseandcreatedavalue
    inthesociety,thereisagrowingliteraturebringingattentiontogenderdifferencesindevelopmentof,
    accesstoanduseofinnovations.USAIDwillensurethatnotonlywillitspromotionofdevelopment
    innovationscontributetocreatingvalueforthepoorandvulnerable,butwillalsocontributetobringing
    attentiontoreducinggenderinequalityasanessentialcomponentofinnovationadoption/adaptation.

    SubIntermediateResult4.3.1Proventechnologiesdemonstratedandadopted
    Theintroductionofprovennewtechnologiescanhavemajorimpactsondevelopmentoutcomes.
    Technologyevaluationandimplementationofaneffectivepilotprogramwillbemadethroughnew
    modelsofpartnershipwithUSAID.Forexample,newinnovationsandtechnologycanplayaroleinthe
    goalsofDO2andDO3forprovidingessentialservicesandaddressinginfectiousdiseases.Newdisease
    diagnostictools,oftenquickerandsimplertousethantraditionaltechnologies,bringtestingtothe
    pointofcareanimportantconsiderationforremoteareas.Theabilitytotesttechnologiesincountry
    andaddressthequestionsandconcernsspecifictoIndonesiawillincreasetheadoptionofnewtools.
    ThisIRseekstostrengthentheabilitytodesignandconductpilotstudies,analyzetheresults,and
    incorporatetheeffectiveapproachesintotherelevanttechnicalsectorsforscaleup.Oneexampleofa
    technologythatUSAIDisalreadysupportinginIndonesiaisGeneXpert,apointofcaretechnologyfor
    drugresistantTBdiagnosisthatdramaticallyreducesthetimeofdiagnosisfromeightweekstotwo
    hoursinmostcases,resultinginimmediatetreatmentandfewerdeaths(USAID/Indonesia,2013,April
    18).Innovationscanalsoaidinthetransparencyofdataandresults.USAIDsinfectiousdisease
    programsutilizeshortmessageservices(SMS)texttechnologiestocollectanddisseminatedatarelated
    toimportanthealthinformation.Electronicdatabasesandautomatedreportinghavegreatpotentialto
    increasetheuseofdatalocally,regionally,andinternationally.

    AnillustrativeactivityunderthissubIRisparticipatingintheHigherEducationSolutionsNetworkwhich
    USAID/Washingtonhaslaunchedasafiveyear$130millionefforttocreatedevelopmentlabsat
    universitiescommittedtoscienceandtechnologyinnovationsforthedevelopingworld.Inparticular,
    theMassachusettsInstituteofTechnologyComprehensiveInitiativeonTechnologyEvaluationandthe
    InternationalDevelopmentInnovatorsNetworkprojectscanbelinkedmorecloselytoourprioritiesin
    Indonesia.Animportantcomponenttotheincreaseduseoftechnologyistherobusttestingofnew
    technologiesincountry.USAIDwillcontinuetosupportpilotprojectsthathavethepotentialtobe
    scaledandhaveahighdevelopmentimpact,withtheultimategoalofcreatingplatformsandsystematic
    approachesthatcanbeledbyIndonesia.Anotherimportantopportunityisthatresearchersandtheir
    partnerscanbeencouragedtoobtainpatentsfortheirresearchproducts.USAIDhasapotentialniche
    todevelopskillsinpreparingpatentapplications.

    SubIntermediateResult4.3.2Privatesectorinitiativesincreased
    TheotherfocusofthisIRistopartnerinnewwayswiththeprivatesector.Itsinvolvementiskeytothe
    adoptionandscaleofnewtechnologiesandinnovationsandtonewwaysofinfluencingdevelopment.
    Thesepartnershipscouldincludenewindustryuniversityprogramsinhighereducationtobetterlink
    industryneedstouniversitycurriculumtoproducemorequalifiedandworkreadygraduates.Other

    InvestinginIndonesia 43
    privatesectormodelsofcooperationincludeincentivemechanismssuchaschallengesandprizesthat
    canbeusedtoharnessbigdata(e.g.crowdsourcing)orbringnontraditionalactorsintoeffortstoutilize
    technologyfordevelopment.

    ApotentialactivityistheInnovationsforIndonesiaprogramthroughtheUSAIDOfficeofScienceand
    Technology,whichisconsideringprovidingseedfundingtoIndonesianentrepreneurstodevelopand
    applyinnovativetechnologiesandapproachesforthegenerationandsharingofdataforinternational
    development.

    InvestinginIndonesia 44
    CRITICALASSUMPTIONSANDRISKS

    ThecriticalassumptionsandrisksdetailedbelowapplybroadlytoUSAID/Indonesiasworkoverthe
    periodofthisCDCS.AssumptionsorrisksthatpertaintospecificareasoftheMissionportfolioare
    indicatedassuch.

    AssumptionsandRisks
    1. AlignmentwiththeprioritiesoftheGOIwillcontinue,evenafterthe2014elections:Thisstrategy
    assumesthat,regardlessoftheoutcomeofthe2014elections,theGOIwillremainacommitted
    partnerinaccomplishingoursharedgoals,andpublicsupportwillcontinue.
    2. MacroeconomicperformanceinIndonesiawillremainstable:Indonesiaseconomicgrowthhas
    beenstable.CurrentandplannedprogramsforUSAID/Indonesiaaredesignedwithinthe
    contextofGOIbudgetpriorities,butsignificantadversechangesinmacroeconomicconditions
    couldlimitthepotentialforprogramstoachieveresults.
    3. Decentralizationwillcontinuetoevolvepositively:Indonesiawillcontinuetobedecentralized,
    withtheprocesscontinuingtoevolvepositively.Inthespacecreatedbydecentralization,
    government,civilsociety,andtheprivatesectorwillrespondtotheneedsoflocalpopulations.
    4. Privatesectorengagement:Thisstrategyassumesthatprivatesectoralliancesandpublic
    privatepartnershipscan,ifwelldesigned,contributetoeducation,health,andenvironment
    activitiesandtothescalingupofinnovativetechnologies,andthatactiveprivatesector
    engagementcanmovebeyondtypicalcorporatesocialresponsibilitymodels.
    5. Naturaldisasterswilloccurandthefrequencyandintensityofclimaterelatedweatherevents
    willcontinuetoincrease:Indonesiassusceptibilitytonaturaldisastersandclimatechange
    relatednaturaldisastersmayadverselyaffecttheaccomplishmentofCDCSobjectivesinthe
    timeframeofthisstrategy.
    6. EasternIndonesiaSustainableDevelopment(specifictoIR1.4):Successassumesacontinued
    abilitytooperaterelativelyfreelyinEasternIndonesiawithGOIbuyinandUSG'sown
    institutionalabilitytocommittosustained,robust,crosssectoralsupport.Wewillcontinueto
    enjoystrongcollaborationwithafewotherkeydonors(UN,AusAid,andNewZealandAid).
    Finally,thedecisionforUSAIDtoengageinEasternIndonesiashouldrecognizeupfrontthatthis
    isalongtermeffort.Whileweareconfidentthatsignificantprogresscanbeobtainedin
    targetedcommunities/areasduringtheCDCSperiod,suchaccomplishmentswillrequire
    continuedattentionbeyondthefiveyearperiodofthisCDCS.
    7. SouthSouthandTriangularCooperation(specifictoIR3.4):Indonesiassuccessesandits
    commitmentstoitsneighborswillresultinamaintainedinterestinSSTC.OverallU.S.
    Indonesianrelationswillremainpositiveandtherewillbecontinuedinterestinworking
    togetherondevelopmentissueselsewhere.BilateralUSAIDprogramsinothercountriesinthe
    regionandtheircounterpartgovernmentswillwelcomecollaborationandpossiblyjointlyfund
    programswithIndonesiaondevelopmentissuesofmutualconcern.

    TheseassumptionsandriskscollectivelysetthebackgroundforUSGprogramming,andthese
    assumptionsandriskswillbeassessedaspartofnormalmonitoringandevaluationtodeterminethe
    extenttowhichUSGobjectivesarehinderedorpromotedbychangesinassumedrisks.Any
    modificationsinthegoals,objectives,orprogrammaticapproachesinthisCDCSimpliedbysubstantial
    changesintheseassumptionsandriskswillbetakenintoconsiderationwithinthecontextofoutlined
    M&Eframeworks.

    InvestinginIndonesia 45
    MONITORING,EVALUATIONANDLEARNING

    OverviewandRationale
    MonitoringandEvaluation(M&E)outlinestheprocesses,resources,andindicatorsnecessaryto
    demonstrateaccountability.ThroughtheseprocessesUSAID/Indonesiawillgaugeprogresstowardthe
    achievementofDOs,justifytheapplicationofassistanceresourceswithempiricalevidenceanddata,
    anddefineaframeworkfordetermininganynecessarycoursecorrectionsduringprogram
    implementation.Inordertobeaneffectivetoolforlearning,however,M&Emustincludeanelementof
    flexibility.M&Ewillbemorethanatrackingmechanism,butpartoftheprocessofprogramandproject
    designandimplementation.ThisensuresthatM&Ebecomesadynamicprocessfromwhichanalytical
    resultsareusedtoguideactions.Inthisway,thequalityofprogrammanagementisimproved,and
    accountabilityforresultsisenhanced.

    M&Eeffortswillpersistentlyseektoverifytheprogressofspecifiedindicatorsaswellasthecausal
    linkagestohigherlevelswithintheResultsFramework.Thisinvolvestherigorous,consistent,and
    timelycollectionofdisaggregatedindicatordata,aswellasregularconsultationwithstakeholdersand
    implementingpartners.Timelinesofdatacollection,processevaluations,andsolidchannelsof
    communicationareessentialinordertoensuretheabilitytomakeadjustmentsandcoursecorrections
    beforeprojectsreachanend.M&Emustalsoincludeanelementoffeasibility.Trackingofindicators,
    consultations,andcollectionofrelevantdatamustbeanintegratedpartofprojectimplementationso
    thattherearesystemstogatherandassessinformationregularly.

    Collaboration,Learning,andAdapting
    TheoverallMissionplanforMonitoringandEvaluationengagesafeedbackCLA(Collaboration,Learning,
    andAdapting)mechanismconsistingofthreekeyelements:
    - Collaboration:EstablishingsystemsandnetworksofreportingandcommunicationbetweenMission
    staffandappropriatestakeholders.
    - Learning:Monitoringindicators,generatingsystemsfordataanalysis,andassessingprogress
    throughthelensofthedevelopmenthypothesis.
    - Adapting:Utilizingevidencetoenhanceprogrammanagementandperformancetostrengthen
    results.

    M&ETools
    USAID/IndonesiawillapplypoliciesandtoolsfromboththeAgencyandMissionleveltoguide
    Monitoring,Evaluation,andLearning.AgencyGuidance/PolicyandEvaluationPolicywilldefinebroad
    parametersforM&EpracticewhiletheMissionwilldevelopaCDCSPerformanceManagementPlan,
    anddefineandadoptMissionOrdersonEvaluations,PerformanceMonitoring,andPortfolioReviews.
    DatacollectionandmanagementtoolswillincludeaGISthatwillbesupportedbycolleaguesinthe
    RegionalDevelopmentMissionforAsiainBangkokandUSAID/WashingtonsGeoCenter.Itwillalso
    includeanexternalM&Econtractthatwillbothensuregreatertransparencyandprovideanunbiased
    appraisalofprojectperformance.PeriodicDataQualityAssessmentswillensuretheaccuracyof
    indicatordatathatisusedformanagementdecisionsandreportingofresults.

    InvestinginIndonesia 46
    USAIDPOLICYFRAMEWORKANDSTRATEGIES

    ThisCDCSisconsistentwithUSAIDPolicyFramework20112015andwillsupporttwooftheCore
    DevelopmentObjectives:(1)Science,TechnologyandInnovation,capturedinDO4;and(2)Aid
    EffectivenessandDonorCoordination.ThisCDCSalignstodraftandfinalAgencyPoliciesandStrategies,
    includingbutnotlimitedtotheDraftBiodiversityPolicy,theGlobalClimateChangeStrategyandGCC
    SupplementalGuidance,andWaterandDevelopmentStrategy,andwasdevelopedincoordinationwith
    technicalassistancefromUSAID/WashingtonOfficesresponsiblefortheirimplementation.

    USAIDForward
    USAID/IndonesiahasmadeaconcertedefforttoimplementUSAIDForwardreformsandwillcontinueto
    applyUSAIDForwardprinciplesthroughouttheprogramcycleandimplementationoftheCDCS.Each
    DOTeamwillintegrateUSAIDForwardintoProjectAppraisalDocuments(PADs)andteamcoordinators
    areresponsibleandaccountableforfurtheringthereformagendaandprovidingperiodicupdatesof
    resultsachieved.USAID/WashingtonhasbeencollectingdataonkeyUSAIDForwardindicatorsandthe
    Missionwillcontinuetotrackandreportthisdata.

    StrengtheningCapacitytoDeliverResults:USAID/Indonesiawilldevelopadetailedevaluationplanthat
    outlinesquestionstotestkeyassumptionsanddemonstrateprogresstowardsobjectivesoutlinedinthe
    resultsframework.TheevaluationplanwillbeoutlinedintheCDCSPerformanceManagementPlanand
    thendetailedineachofthePADs.Theevaluationplanwillensurewecontinuallylearnfromour
    progressandmaximizetheimpactofforeignassistanceresources.USAID/Indonesiawillalsocontinue
    toseektobuildinternalcapacitybybolsteringtalentmanagement.ThroughouttheCDCSperiod,
    USAID/Indonesiawillconductamentoringprogramforstaff,bothForeignServiceOfficers(FSOs)and
    ForeignServiceNationals(FSNs).AMissionOrderontheMissionMentoringProgramoutlinesstandard
    practices.FSNswilltakeleadershiprolesinimplementingandmanagingdevelopmentprogramsunder
    theCDCS,andwillbeencouragedtoengageinFSNFellowshipopportunitiesinWashingtonandwith
    otherUSAIDMissions.

    PartneringforSustainableDevelopment:ThroughoutdevelopmentoftheCDCS,USAID/Indonesiahas
    engagedinaseriesofthoroughconsultationswiththeGOI,civilsociety,theprivatesector,academics,
    andimplementingpartners.USAIDwillcontinuetobuildonthesepartnershipsthroughouttheCDCS
    period.USAIDisintheprocessofhiringdedicatedliaisonofficerswithintwokeygovernmentbodies,
    theCoordinatingMinistryforPeople'sWelfare(MenkoKesra)andNationalDevelopmentandPlanning
    Agency(BAPPENAS),tostrengthenthesekeypartnerships.DOTeamswillcontinueclosecollaboration
    withGOIministries.WhiledevelopingPADs,DOTeamswillseekopportunitiestoinvestdirectlyinGOI
    developmentactivitiesinsupportofDOsandinlocalorganizationswherecapacityexists.Opportunities
    forPublicPrivatePartnershipswillalsoplayakeyroleinimplementationofdevelopmentprojects.

    UnlockingGameChangingSolutions:Indonesiaisnotproducingscienceorinnovationattherateit
    should.Thisimpactsitsprogresstowardcriticaldevelopmentalgoals.AhighpriorityfortheGOI,which
    isreflectedintheirmidtermdevelopmentgoals,istoadvanceinS&T.DO4iscrosssectoralandbuilds
    uponeffectiveactivitiesineachdevelopmentsectorinastrategicway.USAID/Indonesiawilldeepen
    existingpartnershipswithkeytechnicalministries(ResearchandTechnology(RISTEK),Health,
    Environment,Education(includingtheDirectorateGeneralforHigherEducation)),universities,the
    IndonesianAcademyofSciences,andfostermoreprivateandpublicsectorpartnershipstoadvance

    InvestinginIndonesia 47
    IndonesiascapacityindefinedareasofS&T.USAIDisuniquelypositionedtoleveragetherobust
    scientificsupportoftheU.S.toimprovedevelopment.

    ANNEX1:REFERENCESCITED
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    AusAID(2012a).NGOSectorReview:Phase1Findings.STATT.http://www.ausaid.gov.au/business/Documents/indoks15ngo
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    AusAID(2012b)AustraliaIndonesiapartnershipforpropoorpolicy:Theknowledgesectorinitiative,GovernmentofAustralia.
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    Liddle,R.WilliamandSaifulMujani.(Forthcoming).IndonesianDemocracy:FromTransitiontoConsolidation.Forthcomingin
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    USAID/Indonesia(2013,April18).UnitedStateshonorsIndonesiaasachampionintheglobalfightagainsttuberculosisPress
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    InvestinginIndonesia 50
    ANNEX2:GEOGRAPHICTARGETING

    GeographictargetingisprimarilydrivenbyHealthandEnvironmentconsiderations:

    Largestearmarkshealthandenvironment
    Healthhighestpopulationdensitiesandpovertyrates
    Environmentgreatestimpactcanbemadeinbiodiversityconservation
    DGwillfollowHealthandEnvironmentactivities
    S&Tfocusedonuniversities,researchinstitutes
    EducationwillfollowHealthandEnvironmentactivities

    Health
    Indonesiasexpansiveislandgeographyanddiverseenvironmentcombinedwithalargemobile
    populationengendersauniquehealthprofilecharacterizedbyinternalregionalvariationofdisease
    prevalence,highmaternalandneonatalmortalityrates,andinsufficientaccesstoqualityhealthcare
    despiteimpressiveeconomicgrowth.Therigorousanalysisofkeyanalyticalcriteriaresultedinthe
    selectionof14healthpriorityfocusareas.Thesecriteriaincluded:GOIpriorityareas,areaswiththe
    highesttotalnumberofmaternalandneonataldeaths,andareaswithhighprevalenceofHIVandTB,
    muchofwhichoccurinthemostdenselypopulatedpartsofthecountry.Thewaterprogramis

    InvestinginIndonesia 51
    strategicallytargetedtocoincidewithconcentrationsofurbanpoorinthepopulationcenters,which
    overlapwiththehealthpriorityareas.ProvincesinEasternIndonesia(Papua,WestPapua,North
    MalukuandMaluku)werechosenforhigherrates(thoughfewernumbers)ofmaternalandnewborn
    deaths,lackofaccesstohealthfacilities,andageneralizedHIVepidemic.Targetingresourcesinthese
    priorityareasisexpectedtoachievethegreatestmeasurableresultsandmaximizedevelopmentimpact
    inthehealthsector.

    Ref:2007DHS,NationalAIDSdata,Riskesdas2010.

    Environment
    Inanefforttoidentifyprioritygeographicareaswherethegreatestimpactcanbemadeinbiodiversity
    conservationandclimatechangemitigationandadaptation,theMissionconductedtheIndonesia
    BiodiversityandTropicalForestryAssessment(FAA118/119)aswellasthemarineandforestsector
    progressevaluationsandassessments.Theseassessmentsanalyzedbiophysicalcriteriasuchas
    terrestrialandmarinespeciesrichness,endemism,forestcover,locationofprotectedareas,andareas
    ofdeeppeatforhighestcarbonsequestrationpotential.Inaddition,factorssuchasthelocationofGOI
    marineandterrestrialconservationprioritiesandexistingUSAIDinvestmentswereconsidered.Twelve
    priorityprovinceswereidentifiedforbiodiversityandclimatechangeprogrammingasaresult.
    TargetingUSAIDinvestmentsinthesepriorityareasisexpectedtoachievethegreatestmeasurable
    resultsandmaximizedevelopmentimpactinaddressingbiodiversityconservationandclimatechange
    mitigationandadaptationobjectives.Furthermore,itisimportanttonotethateffortswillbedeveloped

    InvestinginIndonesia 52
    fromUSAIDsestablishedcomparativeadvantagesandbecoordinatedwithandcomplementarytothe
    interestsoftheGOIandotherdonors.

    Conclusion
    USAID/IndonesiaisactivelyengaginginthetransformationofUSAIDsdisciplineofdevelopmentby
    implementingtherigorousanalysisanddatadrivenapproachestodevelopmentprogrammingthatare
    calledforintheambitiousreformsembodiedinUSAIDSPolicyFramework20112015.Integrating
    robustgeographicanalysisintothestrategydevelopmentprocesshasresultedintheselectionof14
    provinceswhereUSAIDinvestmentsareexpectedtoachievethegreatestmeasurableresultsunderthe
    FY20142018strategyandsetthestageforintegratingdataandanalysisintoprojectdesign,monitoring,
    evaluation,andlearning.USAID/IndonesiascommitmenttoimplementanintegratedProgramCycle
    drivenbydataandevidencewillresultinaproactiveandlivingstrategythatlearnsfromandresponds
    tochangesinIndonesiasdevelopmentprioritiestoremaincurrent,effective,andfocused,thereby
    maximizingdevelopmentimpactsthatwillshapeIndonesiaslongtermstabilityandprosperity.

    InvestinginIndonesia 53

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