Public Finance & Regional Development
Highlights: CPS, BOS-KITA, EDFF, Myanmar, TIAP
The World Bank
Jakarta office
19 December 2008

The Public Finance & Regional
Development TEAM

Cluster Leaders
Regional IPEA and Aceh
Global
Development : Cut
Production : Peter
Reconstruction : Jock
Enrique Blanco
Dian Rahmi
Milne
McKeon
Almas
Augustina

PFRD Organigram
Decentralization
Management
Wolfgang
Dian
Senior Economist, TTL
Research Analyst
Peter
Adrianus
Senior Editor Research Analyst
Arsianti Ahya
Publications & Events Cons Research Analyst
Sylvia Bastian
Research Analyst
Team Assistant Jakarta
Diane
Kiki
Economist, Cons.
Team Assistant Aceh
Sukma
Erisa
A
Reconstruction / Data Analyst
Team Assistant Dec.
Ryan
Enrique
Aceh Data Analyst
Economist, TTL Aceh
Jock
Public Finance
Senior Financial Analyst
Mafalda
Harry
Economist Cons.
Research Analyst Soekarno
Nova Senior Advisor
Endah
Seminar Series Asst. Data Analyst
Said Camilo
Economist Cons
Economist Consultant
Zaki
Research Analyst

Summary Assessment
Delivery of the first two flagship products of the
Country Team (possibly EAP):
• The new Indonesia Country Partnership Strategy
\"Investing in Indonesia's Institutions\"
• An Education Investment Loan (BOS-KITA).

Summary Assessment
 Global Reconstruction has
3 out of All 4 sub-
experienced implementation delays
engagements, which have
due to the EAPVP request to support
been progressing:
the Myanmar post-Nargis recovery.
•Public Finance
•Decentralization
•Aceh

Business results (July - Dec 2008):
Projects and Programs

Country Partnership Strategy Investing in
Indonesia’s Institutions, September 11
(board)

BOS-KITA, US$ 600 million, October 7
(board)

Aceh Economic Development Financing
Facility, US$ 50 million, December 4
(negotiated)

Business results (July - Dec 2008):
Reports and updates
 Myanmar - Post-Nargis support towards the ASEAN
Damage and Loss Assessment, July 2008
 Aceh Public Expenditure Analysis 2008
 Making Decentralization Work for Development,
Methodology of the Local Government Performance
Measurement (LGPM) Framework
 Aceh Economic Update, October 2008
 Aceh Reconstruction Finance Update, December
2008

Business results (July - Dec 2008):
Book chapters and working papers
 Black Hole or Black Gold? The Impact of Oil and Gas Prices on
Indonesia’s Public Finances, Policy Research Working Paper No. 4718
(Agustina et al)
 Spending for People’s Welfare. Public Expenditure Analysis for the
Province of East Nusa Tengara (interim report, September 2008, also in
Bahasa)
 Chapter on Aceh Reconstruction Tracking in Data Against Natural
Disaster book published and launched, August 2008 (Jock McKeon)
 Endowments, Location or Luck? Evaluating the Determinants of Sub-
National Growth in Decentralized Indonesia, Policy Research Working paper
No. 4769 ( Bambang Suharnoko and Neil McCulloch)
 Post-Tsunami Aid Effectiveness in Aceh. Proliferation and Coordination
in Reconstruction (Harry Masyarafah and Jock McKeon)
 Indonesia’s Rapid Decentralization – Achievements and Challenges, in:
Decentralization in Asia (ed. by Bahl/Ichimura), December 2008

Business results (July - Dec 2008):
Major presentations
 ASEAN: Tracking reconstruction expenditures
in Myanmar, July 2008
 Bangkok Bank: Indonesia 10 years after the
economic crisis: opportunities and challenges in
doing business, August 13.
 Kupang, Spending for People’s Welfare.
Findings from NTT PEA Interim Report.
September 9th, 2008 (with Australian
ambassador)
 Jakarta, MDG1 Assessment – Indicators and
Approach, 13th Sept, 2008
 Davos, Using data to improve reconstruction,
International Disaster Risk Conference, Davos,
August 27, 2008

Business results (July - Dec 2008)
Others:
 Training
for government officials
in Damage and Loss
Methodology, Mataram,
December 2008
 Bahasa version of the
reconstruction website launched,
August 2008
 PeerReview for projects and
AAA in Nigeria, Philippines,
Mozambique
 Supportfor Thailand DPL
preparations

Overall Assessment
Public Finance
 Challenge: Increased demand for research and analysis
due to renewed fiscal space and the need to understand
sub-national spending patterns.
 Strategy: Joint initiative with the GoI (MoF, Bappenas,
sectoral ministries) to analyze public expenditure focusing
on strategic sectors, such as education, health,
infrastructure and agriculture.

Overall Assessment
Regional Government
 Challenge: the capacity to cope with increased
responsibilities, such as providing a wider range of
services
 Strategy: To support the decentralization process by
supporting clients in eastern Indonesia to improve their
(i)
budget systems;
delivering additional regional expenditures reviews; and
(ii)
(iii) providing capacity building to regional universities.

Overall Assessment
SABANG (KOTA)
ACEH
31.5
BANDA ACEH (KOTA)
8.9
ACEH BESAR
29.9 LHOKSUMAWE (KOTA)
15.0
PIDIE
BIREUEN
35.2 29.3
ACEH UTARA
34.2
 Challenge: low government capacity in
ACEH JAYA
31.6
BENER MERIAH ACEH TIMUR
30.0
LANGSA (KOTA)
Poverty Headcount 15.3
27.9
Before Disaster (%) ACEH TENGAH
ACEH BARAT
35.7
Above 45
35 to 45 ACEH TAMIANG
NAGAN RAYA 25.2
25 to 35 35.9
15 to 25 GAYO LUES
(i) facing the challenges of Aceh’s
32.4
Below 15
No data ACEH BARAT DAYA
28.0
ACEH TENGGARA
23.9
NIAS
reconstruction;
20.6
ACEH SELATAN
27.6
NIAS SELATAN
SIMEULUE
19.2
34.3
ACEH SINGKIL
28.9
(ii) promoting growth and the efficient; and
allocation of large government resources.
 Strategy: support through
(i) Technical Assistance and Analysis; and
(ii) deeper engagement with the GoI and
GoA in their transition from post-tsunami

Overall Assessment
Global Reconstruction
 Challenge:
(i) Lack of data at national and global levels on
disaster reconstruction and disaster
mitigation financing; and
(ii) Low capacity in financial tracking when
responding to disasters.
 Strategy:
(i) To develop a nationally and globally
knowledge database on disaster
reconstruction and mitigation financing; and
(ii) To improve capacity at the national level to

PROGRAM DELIVERY FY 2009

Priorities for FY09
1. Support to the Government's Medium Term Plan (RPJM
2010-2014)
2. Investing in Indonesia's next decade of Development
(PER/CEM 2009)
3. Agriculture Public Expenditure Review
4. Education financing program, including preparation of
BOS2
5. MDG costing and financing
6. PEACH factory: Delivering to new provinces and creating
a new delivery model for national scale up
7. Aceh EDFF implementation
8. Aceh Growth Diagnostics
9. Setting up of the Global Disaster Reconstruction and

Average English 2008
Website market share Public Expenditure (214292
for Public Expenditure and Reconstruction
Reconstruction (21142853)
2%
6% Environment (21481510)
18%
Average English 2008 Public Expenditure (21429292)
Gender (21410351)
Reconstruction (21142853)
18%
Education (21521167)
2%
6% Environment (21481510)
18%
Financial Sector (21517996)
Gender (21410351)
18%
Private sector development
Education (21521167)
5%
(21527290)
Financial Sector (21517996)
31%
Private sector development
5%
(21527290)
20% 31%

Impacts & Results : Overall

Impacts and Results :
Sub-engagements
Governor of Papua : “The Papua Public Expenditure Analysis is an initiative of
the Government of Papua Province undertaken to continually improve
performance in the implementation of special autonomy.”

Impacts and Results :
Sub-engagements
Former US Senator George Mitchell who is Head of the BP Advisory group
for Papua’s Tangguh gas field commenting on PEACH report
The World
Bank has
produced a
“path breaking
report”

Impacts and Results :
Sub-engagements
Governor of Gorontalo, Fadel Muhammad : “PEACH has helped us to
establish better regional governance and increase social welfare”

Impacts and Results :
Sub-engagements
Amin Subekti, Deputy of Finance and Planning of BRR, explains, “We are
pleased with this report which will help BRR to assess the challenges that
Aceh’s government faces currently. \"

Impacts & Results : Media

Impacts and Results : Staff
Development
Development Assignment in Washington DC and training with
Asia Learning in Bangkok

Impacts & Results : Fun bit!
World Bank Soccer team
Pingpong competition
with Bappenas : Bill and
Pak Himawan

Public Finance and Regional Development team Retreat