Australia Indonesia Partnership for Decentralisation (aipd) Delivery Strategy 2010 2015 Contents


Scope of AIPD support 3.1Guiding principles



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3Scope of AIPD support

3.1Guiding principles

Ten key principles will guide the way in which AIPD provides support, namely:


  1. Ensure consistency with the Paris Declaration principles, the Jakarta Commitment and AusAID’s ‘Sub-National Engagement Indonesia – A Framework for AusAID 2010 – 2015’ (which includes a focus on working with, through and ‘on’ Government systems).24

  2. Promote a gender and poverty inclusive approach through all supporting actions.

  3. Take a long-term perspective, namely engagement for ten years or more in supporting decentralisation.

  4. Engage actively at national level to support systemic improvements that can be replicated across provinces and districts, based on ‘evidence’ from the field.

  5. Support provincial/district governments to improve their capacity to improve service provision (rather than AIPD directly providing services) and work with legislators as well as the executive, given their key role in resource allocation decisions and establishing the policy/regulatory framework.

  6. Support demand-side capacity building through partnerships with CSO/NGOs, and in particular focus on ‘bridging and brokering’ initiatives that enhance constructive dialogue on specific service delivery reform agendas/priorities.

  7. Be flexible – to respond to diverse contexts and needs (e.g. between provinces and districts) and changing political and policy environments.

  8. Be able to scale up, or scale down, depending on progress being made, opportunities identified and constraints encountered.

  9. Test and prove approaches/tools that can be replicated across provinces/districts; and
  10. AIPD should not present itself as a ‘new’ program, but as a support mechanism for implementing the GOI’s decentralisation policies, which builds on the ANTARA experience.

3.2Duration, geographic coverage and phasing


AIPD will initially be financed for a period of five years, from 2010 to 2015. However, it is clearly recognised that the objective of improving service delivery is an ongoing endeavour, and one which may merit donor support over a much longer period of time.

AIPD will focus its work in four targeted provinces, namely NTT, NTB, Papua and Papua Barat, which have some of the worst poverty indicators in Indonesia. Within these provinces there are a total of 71 districts (NTB 10, NTT 21, Papua 29 and Papua Barat 11), and clearly AIPD cannot provide support to every one of these.

An important part of AIPD’s strategy is therefore to be selective in deciding which districts to work with in terms of providing any significant level of sustained support. Selection of districts will be undertaken in partnership with provincial authorities (e.g. the Governor, Sekda and Bappeda), with a view to identifying districts with a clear commitment (and basic ability) to engage in PFM and related reforms aimed at improving service delivery. A process of ‘self-selection’ by interested LG’s may be trialed, as a means by which to promote LG ownership of and commitment to AIPD supported PFM reform and capacity building initiatives.

Indicative criteria for district selection are listed below:



  1. Have a satisfactory PFM score (based on the PFM assessment process/tool).

  2. Have clearly stated service delivery improvement objectives and targets.

  3. Commit to providing counterpart resources from their own district budget to support service delivery improvement activities.
  4. Agree to publish their budget and budget implementation report, and make this available to the public; and

  5. The Bupati or Walikota sign a letter of agreement with AIPD clearly articulating service delivery improvement objectives, the indicative activities to be jointly undertaken, and respective responsibilities and commitments.

It is nevertheless understood that there may be other compelling ‘political’ criteria that may need to be taken into account, particularly regarding the selection of districts in Papua and Papua Barat. This will be up to the PCC to deliberate on and determine.

It is currently anticipated that AIPD might support a substantive program of work in up to four districts in each province over the period 2010 to 2015 (total of 16 districts). While doing so, AIPD will nevertheless support the sharing of knowledge about what is working well, both horizontally (between districts and provinces) as well as ‘vertically’ (with national government to help inform evidence-based policy making).

It is also anticipated that AIPD will, as appropriate, support the four targeted provinces to draw on the experience/good practices of other provinces in Indonesia. For example, study tours to East Java could be organised (where there are some notable examples of successful district level reforms being implemented) for key stakeholders in AIPD targeted districts.

In terms of the phasing and ‘pace’ of AIPD support, this will be determined primarily by an ongoing assessment of circumstances ‘on the ground’. Prior to providing any targeted and sustained support at the district level, it will be important to analyse the situation, collect basic data/information, establish working relationships and a clear joint commitment to objectives, and reach agreement on a program of work and responsibilities. Support will then be provided as quickly as possible, but as slowly as necessary, in line with demand from, and capacity, of local partners. In NTT, where ANTARA has developed strong working relationships with partners over the last five years, more ambitious targets can be expected. On the other hand, in provinces where AIPD has only just begun to establish a presence, the initial focus should be on building working relationships with key institutions/partners, establishing common objectives and a clear program of work, and setting modest targets to achieve.

The ‘process’ of providing AIPD support is profiled in Figure 4 below. This diagram should be read from the bottom up.

The primary beneficiaries of AIPD support are expected to be the men, women and children of NTT, NTB, Papua and Papua Barat who depend on government supported services for their health, education and infrastructure needs. Particular focus will be given to targeting the needs of women, children and the poor.

AIPD’s primary partners are members of the provincial and district executive and legislatures, civil society groups working to improve governance and service delivery, and key decision makers in central government agencies such as MOHA and MOF.

Figure 4 – Process for providing AIPD support





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