Transitional Multi-Donor Fund for Aid For Development Effectiveness (TMDF-A4DE)
What We Do
Following the signing of Jakarta Commitment on 12 January 2009, the Government of Indonesia (GOI) established the Aid for Development Effectiveness Secretariat (A4DES) in the National Development Planning Agency (Bappenas) which responsible for providing support in facilitation, coordination and monitoring of the coordinated activities to realise the objectives of the Jakarta Commitment.
A major task of the Aid for Development Effectiveness Secretariat (A4DES) is to create a nationally owned results-based cooperation process to work with the development partners for the targeted development results in an environmental of mutual respect, trust and accountability.
Shortly after its inception, the A4DES developed a document – Aid for Development Effectiveness Programme (referred as A4DE Programme), that describes the objectives, organization structure, coordination mechanisms, funding support modality, priority actions, action plan and resources requirement for implementation of the Aid for Development Effectiveness agenda.
The Work Plan of the A4DE Programme specifies the activities to be undertaken during the period of 2009 to 2010 for improving development coordination processes, public finance and procurement systems, and building capacities of the Government ministries and agencies to meet Indonesia’s targets in the first phase of implementation of the Jakarta Commitment.
The Jakarta Commitment represents a new standard for the measurement of the development assistance and calls for:
- Stronger national ownership in defining aid architecture and processes;
- A shift from a donor-recipient relationship to a paradigm of equal and innovative partnerships;
- Moving from financial assistance to a more strategic and catalytic role of aid;
- Transition from scattered project-based assistance to a more programmatic approach;
- Stronger focus on capacity development and results orientation embedded in national programmes; and
- Greater mutual accountability and alignment between the government and international partners.
The three pillars of Jakarta Commitment include as follows:
- Strengthening country ownership over development programmes;
- Building more effective and inclusive partnerships for development; and
- Delivering and accounting for development results.
The Government of Indonesia request to UNDP for managing Transitional Multi-Donor Fund for A4DE that comprises of three main components of assistance as outlined below:
- To provide funding mechanism for implementation of A4DE Programme, in the interim, while the nationally-managed Trust Fund is being set up, for enhancing national systems, institutions and capacities for implementation of Indonesia’s Aid for Development Effectiveness agenda as articulated in the Jakarta Commitment;
- To provide advisory services for the development and operationalization of a Trust Fund for Aid for Development Effectiveness (A4DE) to be administered by a national entity; and
- To provide capacity building for effective implementation of A4DE Program and nationally managed Trust Fund.
- With the activation of the six A4DES Working Groups and implementation of their work plans, Indonesia has initiated more country-led and sustainable results, in particular on policy formulation on the country aid management system;
- The issuance of Government Regulation No. 10/2011 on Aid Management (PP 10/2011) provided a stronger legal basis for the Government (Ministry of Finance and Bappenas) to formulate ministerial regulations to operationalize PP 10/2011. PP 10/2011 regulates on foreign loans and grants.
- The Government is becoming more proactive in gaining the required information on Official Development Assistance (ODA)-funded programmes/projects through regular reporting and requests to line ministries as the implementers as well to development partners as the providers of development cooperation;
- More technical level regulations were developed and introduced. One of the achievements was the introduction of a system to report on development partners’ non-cash (goods and services) contributions to the Government, through submission of a handover note of goods and services (known as BAST), signed by both the development partner and the government institution as recipient, and reported to the Ministry of Finance;
- The enactment of Presidential Regulation No. 80/2011 on ‘National Trust Funds’ has also provided the Government a basis to improve aid harmonization, which was the country’s biggest hurdle to aid effectiveness, as shown in the 2011 Paris Declaration Monitoring Survey, under Indicator 9, assesses how development partners work together by measuring the proportion of total ODA disburse through programme-based approaches (PBAs). Data from 2011 Paris Declaration Monitoring Survey shows that 61 per cent of aid to Indonesia was utilised through PBAs, with direct budget support as the main modality.
- Indonesia has begun to play a much stronger and more active role in international development forums. These forums provide an opportunity for Indonesia to show the international community that it is ready to be more active as a provider of development cooperation rather than only a recipient. This means enhanced capacity of the Government of Indonesia to solicit potential areas of collaboration in various development programmes.
UNDP Indonesia Country Office
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