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About 330 participants joined a three-day international webinar (half-day each) on performance measurement and intergovernmental fiscal transfer on February 22-24, 2021. Representatives from five key Indonesian government institutions* engaged in discussions on improving services through performance assessment, performance benchmarking, data analytics, and an overview of performance measurement systems in Indonesia and Australia. The governments of Indonesia, the Philippines and Australia organized this event, which was the result a GPRBA technical assistance (TA) activity initiated in 2014 to support Indonesia's Local Government and Decentralization Project (LGDP) to expand and scale up verification mechanisms to measure outputs and outcomes of fiscal transfer spending.
The webinar marked an important milestone to further institutionalize the reforms within the Indonesian government, as well as a key foundation to advance the performance measurement system. This GPRBA TA has demonstrated the sustainability of the output verification mechanism by utilizing Indonesia’s own independent auditor (BPKP) and thereby achieving one of GPRBA’s main objectives to mainstream output-based aid/results-based financing in World Bank client country systems. The goal is to connect more countries to learn from governments with well-established performance measurement systems such as the Australian example while sharing Indonesia’s achievements.
As a follow-up to the webinar, a Focus Group Discussion was establised to facilitate brainstorming sessions among key representatives from the ministries to develop a draft roadmap for the infrastructure grant performance measurement system improvement in Indonesia. A follow-up learning and knowledge exchange is also being explored with the South African government on infrastructure grant scheme best practices, associated results framework and measurement.
For more details, read a summary of this webinar and training event "Measure-and-Benchmark Subnational Government Performance for better Public Service Delivery: Lessons from Australia and the Philippines"
*Ministry of Finance, Ministry of Home Affairs, Ministry of Public Works and Housing, National Development Planning Agency (Bappenas), and the National Government Internal Auditor (BPKP)
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About 330 participants joined a three-day international webinar (half-day each) on performance measurement and intergovernmental fiscal transfer on February 22-24, 2021. Representatives from five key Indonesian government institutions* engaged in discussions on improving services through performance assessment, performance benchmarking, data analytics, and an overview of performance measurement systems in Indonesia and Australia. The governments of Indonesia, the Philippines and Australia organized this event, which was the result a GPRBA technical assistance (TA) activity initiated in 2014 to support Indonesia's Local Government and Decentralization Project (LGDP) to expand and scale up verification mechanisms to measure outputs and outcomes of fiscal transfer spending.
The webinar marked an important milestone to further institutionalize the reforms within the Indonesian government, as well as a key foundation to advance the performance measurement system. This GPRBA TA has demonstrated the sustainability of the output verification mechanism by utilizing Indonesia’s own independent auditor (BPKP) and thereby achieving one of GPRBA’s main objectives to mainstream output-based aid/results-based financing in World Bank client country systems. The goal is to connect more countries to learn from governments with well-established performance measurement systems such as the Australian example while sharing Indonesia’s achievements.
As a follow-up to the webinar, a Focus Group Discussion was establised to facilitate brainstorming sessions among key representatives from the ministries to develop a draft roadmap for the infrastructure grant performance measurement system improvement in Indonesia. A follow-up learning and knowledge exchange is also being explored with the South African government on infrastructure grant scheme best practices, associated results framework and measurement.
For more details, read a summary of this webinar and training event "Measure-and-Benchmark Subnational Government Performance for better Public Service Delivery: Lessons from Australia and the Philippines"
*Ministry of Finance, Ministry of Home Affairs, Ministry of Public Works and Housing, National Development Planning Agency (Bappenas), and the National Government Internal Auditor (BPKP)
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This activity supports improvements in the quality of local services and infrastructure by improving accountability through the use of the government's own internal auditor. The methodology of output verification will be useful for monitoring results from infrastructure sectors supported by a broader set of programmatic advisory and analytical activities. In turn, the programmatic activities on Sustainable Urbanization aim to support the Government in developing a suite of policy, advisory, financing and program solutions to meet the challenge of sustainable urbanization, specifically policy and financing frameworks to channel advisory and investment to Indonesian cities to meet pressing urban infrastructure and management needs.
The activities have been completed. In this reporting period, GPRBA catalogued knowledge products for to be used after the TA, supporting a state audit reform that now includes physical verification of results in the basic infrastructure sectors. The budget was increased from the original 350,000, given the impact of this activity on Indonesia, the most populous island nation that recently graduated from IDA and continued with fast development. For the future, GPRBA is considering a new TA for BPKP, the independent federal audit agency, to expand the use of output verification in housing, education and health sectors.
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This activity supports the incorporation of RBF into the Bantuan Stimulan Perumahan Swadaya (BSPS) program's framework and subsidy-delivery mechanism, contributing to the improvement of BSPS housing quality (e.g., livability, disaster resilience, access to services, etc.) and accountability.
The development of the RBF Framework for Selfhelp Housing has made some major breakthroughs.
The proposed RBF scheme has been approved by the Ministry of National Development Planning and has been green-lighted for discussion for pilot implementation. Discussions are underway in parallel with relevant directorates at the Ministry of Public Works and Housing (MPWH) and the MoF for a prospective RBF pilot project. The RBF scheme is envisioned as the new Hibah (grant) mechanism, following the success of a similar mechanism in the water, sanitation, and road sectors.
The MPWH has expressed interest in adopting the RBF scheme for its upcoming community-based landed housing assistance program. This program seeks to assist lower-income segments of the population— specifically those who fall outside the target market of commercial lending or any existing government housing programs—to become first-time homeowners. The program is intended to utilize modular prefabricated panels to ensure quality and speedy delivery of the houses while maintaining a low carbon footprint.
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This activity analyzed the market and developed a results-based and blended financing (RBBF) scheme to improve access to affordable and resilient housing for lower-income households in Indonesia.
The activity was to ensure that such financing would complement existing World Bank initiatives, such as the National Affordable Housing Program.
The activity delivered a market study that provided significant insights on the supply for housing finance in Indonesia as well the potential demand for housing finance solutions for middle income households that are currently not covered by government and market programs. The study gone through two rounds of reviews and created a discussion platform on how IFC and the World Bank, potentially through GPRBA can work together to support affordable housing sector in Indonesia. The activity was extended from December 2019 to March 2020 to allow more time for consultations and the development of a synthesis note that will provide an overview of housing finance sector in Indonesia and a framework for future interventions.
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Innovations related to the Indonesia’s Local Government Decentralization Project improved reporting and accountability of the government of Indonesia's intergovernmental transfer system for the infrastructure sector. The implementation of a web-based reporting system supported transparency and efficiency by allowing both local and central governments to view and update project status and information on outputs. Thalyta Yuwono, a Senior Urban Economist at the World Bank shares innovations related to the Indonesia’s Local Government Decentralization Project.
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Innovations related to the Indonesia’s Local Government Decentralization Project improved reporting and accountability of the government of Indonesia's intergovernmental transfer system for the infrastructure sector. The implementation of a web-based reporting system supported transparency and efficiency by allowing both local and central governments to view and update project status and information on outputs. Thalyta Yuwono, a Senior Urban Economist at the World Bank shares innovations related to the Indonesia’s Local Government Decentralization Project.
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This video features the highlights of the South-South Knowledge Exchange (SSKE) co-sponsored by the Global Partnership on Output-Based Aid (GPOBA) -- and which hosted participants from the South Asia region (Bangladesh, India, Indonesia, Sri Lanka, Nepal).
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News Release No. 2009/2
In Washington:
Cathy Russell, tel. (+1) 202 458 8124 crussell@worldbank.org
In Jakarta:
Randy Salim, tel. (+62) 21 5299 3259 rsalim1@worldbank.org
Washington D.C., February 20, 2009 – The World Bank, acting as administrator for the Global Partnership on Output-Based Aid (GPOBA), signed a grant agreement with the Republic of Indonesia for US$2.4 million to increase access to piped water networks for poor households living in Surabaya.
Up to 15,500 households or 77,500 people are expected to benefit from the scheme through new household connections, including bulk supply or “master meter” connections for particularly poor, dense or informal communities not otherwise eligible for household supply.
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Jakarta, Indonesia, November 1, 2007 – The Global Partnership on Output Based Aid (GPOBA) has signed today a grant agreement with the PT Pam Lyonnaise Jaya (PALYJA), for US$2,573,140 that will subsidize the cost of water supply connections for households in a number of poor communities in Western Jakarta. PALYJA, a subsidiary of French group Suez Environment, is one of the two concessionaires that, since 1998, has been contracted through a 25-year Cooperation Agreement to provide water supply services in Western Jakarta, serving a population of some 2.5 million.
The project will benefit up to 11,600 individual households in poor communities in the western concession area of Jakarta. In partnership with DKI Jakarta, a number of pilot schemes will be developed to introduce piped water into a number of informal communities where, to date, PALYJA has not been authorized to extend its network. It is estimated that 2,200 of the total of 11,600 households will be located in these informal communities.
GPOBA will be distributing funds based on two measurable outputs – the provision of a working household connection, and the delivery of acceptable service for a period of three months. Each eligible household will make a contribution towards the cost of the connection, with a higher subsidy proposed for the pilot informal communities.“It has been a challenge to develop this output-based aid (OBA) scheme within the economic constraints of the concession arrangements in Jakarta. As a result we designed, with PALYJA, a highly innovative risk sharing mechanism for output delivery”, says Patricia Veevers-Carter, GPOBA’s Program Manager.
The project recognizes that following the Asian financial crisis of 1997/98, severe pressure has been placed on concession contracts to constrain tariff increases. This has resulted in a significant downsizing of investment plans, and corresponding reduction in network expansion and connectivity rates. With raw water shortages in the city, the impact of reduced investment has particularly hit the poor communities of Jakarta, where households are forced to use unsafe or very expensive alternative supply sources.
An important aspect of the project has been the active involvement of stakeholders, “without the active support and engagement of key stakeholders such as DKI Jakarta, PDAM Jaya and the Regulatory Body it would not have been possible to develop a sustainable approach to supplying poor and informal communities in Jakarta”, commented PALYJA’s President Director Mr. Thierry Krieg.
GPOBA was established in 2003 as a multi-donor trust fund to develop output-based aid (OBA) approaches across a variety of sectors including infrastructure, health and education. OBA subsidies are designed to create incentives for efficiency and the long-term success of development projects. GPOBA’s current donors are the UK’s Department of International Development (DFID), the International Finance Corporation (IFC), which is a member of the World Bank Group, the Directorate-General for International Cooperation of the Dutch Ministry of Foreign Affairs (DGIS), and AusAid of Australia. The grant agreement signed on November 1, 2007 was funded out of IFC’s and DFID’s contribution to GPOBA.