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Introduction: 2007 year in review 
2007 was another significant year for the Australia Indonesia Partnership.
Reconstruction after the 2004 Boxing Day tsunami neared completion, helping create a more positive future for communities in Aceh and Nias.
This work was the centrepiece of the $1 billion Australia Indonesia Partnership for Reconstruction and Development (AIPRD), the single largest aid package in Australia’s history.
AIPRD also includes large-scale social and economic development programs across Indonesia.
In 2007, many of these began and others moved forward showing positive results.
Building on these achievements, the governments of Australia and Indonesia collaborated on the development of the new Australia Indonesia Partnership Country Strategy 2008–2013.
The strategy will guide the way the two countries work together over the next five years to help Indonesia deliver on its development goals, including the internationally agreed Millennium Development Goals (MDGs).
The Australia Indonesia Partnership: 2007 Year in Review reports on progress made and outcomes achieved throughout the year in several key areas: sustainable growth and economic management; investing in people; democracy, justice and good governance; and safety and peace.
The report shows that Australian development assistance is reaching those who need it most and is making a difference.
Hundreds of junior secondary schools were built or expanded in 2007, leading to thousands more students in poor and remote areas enrolling in school.
Construction also began on another 500 schools.
The Basic Education Program is pivotal to the Government of Indonesia meeting its own goal of achieving nine years of compulsory basic education for all children.
A $38 million rural development program identified promising market prospects for agricultural products such as peanuts and specialty coffee, which will help boost the productivity and incomes of farmers in eastern Indonesia.
More than four million people in rural villages now have access to water and sanitation as a result of a project jointly funded by Australia's Agency for International Development (AusAID) and the World Bank, and Indonesia is better able to respond to outbreaks of avian influenza, reducing the risk of the disease spreading through poultry and to humans.
Local elections held across Indonesia in 2007 were more transparent and attracted more voters, due in part to AusAID funding for voter education and election monitoring.
Australia assisted the Indonesian Supreme Court to implement legal reforms giving the poor and marginalised, including women, better access to justice.
Australia also announced new initiatives, including $30 million to help Indonesia reduce greenhouse gas emissions from deforestation in Kalimantan.
A new $100 million Australia Indonesia Partnership for HIV will help prevent and limit the spread of the epidemic, improve the quality of life for people living with the virus and alleviate its socioeconomic impacts.
Despite progress in many areas, challenges remain.
While economic growth means Indonesia is now classified as a middle-income developing country, around 100 million people—or almost half the population—still live on less than US$2 a day.
While great strides have been made in developing new infrastructure, many poor people continue to live with little or no access to basic services like clean water.
Australia has tripled its development assistance since 2003-04 and is now the largest bilateral grant donor to Indonesia.
The method of delivering aid has changed—traditional project approaches have been replaced with those that help Indonesia use its own systems and resources more effectively and efficiently, in a genuine spirit of partnership.
This will continue as the Australia Indonesia Partnership works at national, provincial and district levels of governments and with other donors, civil society and Non-Government Organisations (NGOs) to find practical, sustainable solutions to reduce poverty and build prosperity.
Australia Indonesia Partnership for Reconstruction and Development The $1 billion AIPRD program is the largest single aid package in Australia’s history.
It was announced in the aftermath of the tsunami of 26 December 2004, as Australia moved swiftly to help affected areas, particularly Aceh and Nias, recover from the devastating loss of life and economic damage.
However, the AIPRD went beyond the reconstruction effort with programs to promote social and economic development in affected areas and other parts of Indonesia.
It heralded a shift in aid assistance, with Australia supporting programs the Government of Indonesia identified as priorities for reducing poverty.
With the ever-present risk of natural disasters, the AIPRD also helped government, communities and civil society prepare for and respond to emergencies.
In 2007, significant progress was made in rebuilding vital community infrastructure in Aceh and Nias, such as village halls and schools, and reconstruction will be completed in 2008.
Australian aid continued to help restore health, education and governance systems and to rebuild the skills lost when so many died.
The AIPRD also funded reconstruction and supported livelihoods in Yogyakarta and Central Java after the May 2006 earthquake, and provided support for other disasters.
The Australian and Indonesian governments are engaged at the highest political levels on the AIPRD.
The program is governed by a Joint Commission overseen by the Prime Minister of Australia and the President of Indonesia and funds are allocated under a partnership framework agreed to by both governments.
Details on the many outcomes achieved under the AIPRD in 2007 are included throughout this report.
Financial summary In 2007, total expenditure for the Australia Indonesia Partnership was $292.1 million, including $161.7 for the AIPRD.
The five-year AIPRD consists of $500 million in grants and $500 million in highly concessional loans for high-priority reconstruction and development projects.
At the end of 2007, all funds had been committed and about $376 million spent.
The $300 million loan agreement for the Eastern Indonesia Road Improvement Project (EINRIP) is now expected to be disbursed over a longer period following Australian and Indonesian agreement to ensure quality design, construction, procurement, monitoring and accountability processes.
The EINRIP loan agreement was signed on 7 September 2007.
Civil works will commence in the second half of 2008 and final disbursement is expected in 2010-11.
Progress against the Millennium Development Goals The Australia Indonesia Partnership delivers development assistance to support Indonesia to achieve the MDGs.
Indonesia’s National Millennium Development Goal Report 2007, launched by President Susilo Bambang Yudhoyono in December 2007, reported that:
Indonesia is likely to meet MDG targets in the following areas: 
poverty reduction 
primary education enrolment rates 
literacy rates 
eliminating gender disparity in primary education 
halting the spread of tuberculosis
improving sanitation.
Indonesia is making progress towards MDG targets in the following areas and is likely to achieve these if there is a sustained effort:
reducing child mortality 
reducing malaria incidence 
improving primary school completion rates 
improving water access.
Indonesia is not likely to meet MDG targets in the following areas unless there are significant further investments:
maternal mortality 
child nutrition 
HIV prevalence 
environmental sustainability at the national level.
Sustainable growth and economic management Overview In 2007, the Australia Indonesia Partnership progressed planning, building and upgrading infrastructure, focusing on roads, water and sanitation.
These efforts recognise the importance of infrastructure for sustainable economic growth and social development.
Improved roads, for example, increase access to markets, jobs and essential social services—without them, remote and poor parts of Indonesia will remain isolated and underdeveloped.
The partnership helped people to improve their household incomes, including through agriculture and market development.
In Aceh and Nias, and in Yogyakarta and Central Java, livelihoods and community infrastructure devastated by natural disaster were rebuilt.
This emphasis on sustainable growth and economic management was complemented by an increased commitment from Indonesia and Australia to protect the environment and reduce greenhouse gases.
Infrastructure The road to economic growth Australia is supporting regional and social development in eastern Indonesia by improving the national road network and bridges.
In September 2007, Australia signed a $300 million loan agreement with the Government of Indonesia as part of a $328 million project funded under the AIPRD.
Hundreds of kilometres of national roads and bridges will be repaired in 10 provinces across eastern Indonesia.
This will generate real economic benefits and reduce travel times and costs.
Planning and design to international standards began, contributing to improvements in the Government of Indonesia’s engineering design and procurement systems.
Construction tenders will be called from mid-2008 and the first roadworks will take place on the coastlines of South and South East Sulawesi, West and South Kalimantan, Bali and Nusa Tenggara Timur.
Bridges in North Sulawesi washed away by the floods of early 2006 will be replaced.
Reducing constraints to infrastructure investment and productivity growth A new $64.8 million Indonesia Infrastructure Initiative, known as IndII, was announced in 2007 to help the Government of Indonesia attract investment through reforms to its infrastructure policy and regulations.
The initiative will also support provincial and district governments to plan and deliver infrastructure projects.
IndII builds on AusAID’s reputation for being a responsive provider of high-quality technical assistance and model infrastructure projects.
Access to water and sanitation Australia supported Indonesia’s efforts to improve water supply and sanitation for the poor, investing $20 million in initiatives with the World Bank and Indonesia’s Development Agency, BAPPENAS.
One initiative is improving the health, productivity and quality of life in 2500 underserved rural villages in seven provinces.
By 2007, the number of households with access to clean water increased from 25 per cent to 77 per cent, benefiting 4.2 million people.
Three hundred and sixty villages had sanitation and about 120 are either now completely or almost free of the need for people to defecate in the open.
This success is recognised by other donors such as UNICEF and the Asian Development Bank, which have adopted similar community-based water supply and environmental sanitation principles.
Water and sanitation plans were completed in more than half the districts involved in the project, although integrating national water and sanitation policies with local government budgets remains a challenge.
Another initiative is helping the Government of Indonesia implement a national policy for, and ongoing reforms in, the sector.
Reconstruction nears completion in Aceh Three years after the tsunami, the reconstruction efforts funded by the AIPRD neared completion.
University facilities in Aceh, including the Aceh Research Training Institute at Syiah Kuala University, were finished in 2007, following the rebuilding of the main hospital’s emergency department and the midwifery and nursing academies in 2006.
Work on restoring facilities at the $10.6 million Ulee Lheue Port at Banda Aceh progressed, and the construction of a permanent ferry terminal is expected to be finished by mid-2008.
Early improvements have meant thousands of passengers are able to use the ferry service, making remote areas accessible.
Australia has been helping to restore community life after more than 500.000 people were left homeless and more than 800 villages destroyed.
More than 175 village halls have been built, providing much-needed focal points for community activity and village planning.
More than 200 local facilitators were employed to help communities manage their reconstruction.
In Nias, work focused on improving roads and bridges and providing an accessible water supply, which has improved health and reduced the amount of time women and children spend accessing water to meet their families’ daily needs.
Australia’s flagship governance and community infrastructure program, LOGICA, reestablished land ownership by mapping land boundaries which had been completely washed away.
This involved villagers agreeing on boundaries, land use and ownership.
In 2007, 61 villages and almost 20.000 land parcels were mapped— the process has been used in 400 villages and was a vital prerequisite for building more than 100.000 houses.
Much-needed small grants for village infrastructure helped more than 200 villages build roads, drainage, bridges, community halls, wells and water filters, and womens centres.
Australia’s assistance has been recognised across Aceh and internationally for being flexible and responsive to the real needs of people and for putting Acehnese in the driver’s seat of reconstruction.
Australia has also been recognised for knowing how to work sideby- side with its Indonesian neighbours and for ensuring high-quality reconstruction.
Rebuilding infrastructure and livelihoods in Yogyakarta Reconstruction continued in Yogyakarta and Central Java, following the devastating earthquake in May 2006.
AusAID provided up to $30 million of AIPRD funds over three years to help affected communities rebuild their livelihoods and infrastructure, including schools.
In 2007, community involvement in these recovery activities contributed to their success and women played a significant role.
The Yogyakarta-Central Java Community Assistance Program provided communities with clean water and sanitation, as well as materials to build their own latrines and septic units.
Nine damaged health clinics in Klaten and Bantul were rebuilt or reconstruction started.
Local builders, architects and community groups received on-the-job training to make these clinics earthquake safe.
A Mobile Community Assistance program delivered through Community Housing Foundation International and the International Organization for Migration provided hands-on training to more than 1200 villagers to build earthquake-resistant houses for vulnerable families.
AusAID has provided up to $1.5 million in livelihood grants to local and international NGOs.
The grants were used to develop ideas to support those affected by the earthquake to rebuild or restart their businesses.
This included a successful ‘quick impact’ initiative to help more than 17 250 business people, particularly women and disabled groups, to replace their assets.
New business horizons Forty-year-old Mbak Yanti saw her home and kiosk business in Sanan sub-village on the slopes of Sewu Mountain destroyed by the earthquake in Yogyakarta.
Having lost her livelihood, Mbak Yanti and her two young sons were forced to live with her ageing parents.
With no income and no capital or equipment, life looked bleak.
In March 2007, Mbak Yanti was accepted to be part of a women’s group to receive an AusAID livelihoods grant through SP Kinasih, a local NGO implementing projects to help empower women.
She used part of her $250 grant to restart her business, buying a new stove, pan and rice cooker as well as raw materials, tables and chairs.
She used the rest to rent a new stall nearby.
Mbak Yanti’s business is now thriving and she plans to expand to another location.
Regional development Boosting the rural sector in eastern Indonesia Most of Indonesia’s poorest people live in rural areas.
Australia continued to fund projects to improve farmer productivity and access to markets including through the 10-year, $38 million Smallholder Agribusiness Development Initiative, designed to generate economic growth and reduce rural poverty in eastern Indonesia.
The initiative began in South Sulawesi, South-East Sulawesi, Nusa Tenggara Barat and Nusa Tenggara Timur, which have significant agricultural potential but low productivity and incomes.
The goal is to improve farmer productivity, add value to products on and off the farm and establish better access to markets.
Seven agricultural products were analysed in 2007 to determine their market prospects, and partnership agreements were signed with leading food manufacturers in cocoa, specialty coffee, high-value horticulture and peanuts.
Forecasts are positive.
For example, the partnership with Garuda Foods in the snack food sector in Lombok, due to start in 2008, is expected to reduce operational costs and increase peanut farmers’ income, each by up to 20 per cent.
Funded under the AIPRD, the initiative is being implemented with the Government of Indonesia’s National Program for Community Empowerment, the Australian Centre for International Agricultural Research, the World Bank and the International Finance Corporation.
The $31 million Australia Nusa Tenggara Assistance for Regional Autonomy (ANTARA) program is now midway through implementation.
The program worked closely with provincial and district governments in Nusa Tenggara Timur to reduce poverty through sustainable social and rural economic development.
For instance, a program to foster small- to medium-enterprises, particularly in agribusinesses and handicrafts, resulted in 75 per cent lower costs for business registration.
Farmers’ productivity in targeted areas increased by 26 per cent and their income grew by 18 per cent.
A mobile banking program improved financial and micro-credit services to the sector.
ANTARA also worked closely with other AusAID programs in the province in health, education, infrastructure and governance.
For example, it has helped district governments improve their budget and planning processes, which in turn will enhance service delivery and civil society engagement in governance.
New livelihoods in Aceh A priority in 2007 was getting Acehnese people back into income-generating work, including in aquaculture and small business.
Aquaculture was a thriving industry in Aceh before the tsunami, directly employing more than 100.000 people.
Tiger prawns, destined for export markets, had an annual production value of $50 million.
The tsunami, however, destroyed more than half the province’s ponds and hatcheries for producing prawns and fish.
In 2007, efforts to teach local prawn farmers how to better manage their crops helped increase average yields from 150 to 192 kilograms per hectare.
This will be supported further when work underway on Aceh’s peak aquaculture prawn hatchery and training centre is completed in mid-2008.
AusAID and the International Finance Corporation opened the Investor Outreach Office in March 2007 as part of a $7 million program to encourage private sector investment in Aceh.
It provided support to 40 investors and delivered business training to 800 people.
Improving economic management Australian support for the Government of Indonesia’s efforts to improve economic policy and management contributed to the country’s good overall economic performance in 2007.
For example, Indonesia maintained significant and steady growth in taxation revenue and reductions in debt financing costs, areas which have been a key focus of the partnership with Australia.
Australia helped the Indonesian Ministry of Finance to identify and engage with potential taxpayers and increase the tax base.
This has contributed to an increase in Indonesia’s nonoil taxation revenue from 3.6 per cent of Gross Domestic Product in 2005 to 5.7 per cent in 2007—an increase of almost 60 per cent.
Indonesian government agencies worked with Australian counterparts under the Government Partnerships Fund to strengthen the implementation of economic, financial and public sector management policies in Indonesia by exchanging ideas and expertise.
The Australian Prudential Regulatory Authority and the Ministry of Finance, for example, worked together to develop a risk-based system of banking supervision for Indonesia, which will contribute to the stability of the finance sector.
Economic growth with sustainable natural resource management Climate change and the environment were in the spotlight when Indonesia hosted the United Nations Framework Convention on Climate Change meeting in December 2007 in Bali.
At the meeting the Australian Government ratified the Kyoto Protocol and declared it would support developing countries in the region to reduce greenhouse gases.
These headline events followed the joint signing by the governments of Australia and Indonesia of an agreement to cut greenhouse gas emissions by around 700 million tonnes over 30 years.
Australia committed up to $30 million to the $100 million Kalimantan Forests and Climate Partnership, which aims to preserve 70.000 hectares of peat land forests in Kalimantan, re-flood 200.000 hectares of dried peat land and plant up to 100 million new trees on rehabilitated peat land for conservation purposes.
Preliminary scoping work was completed in 2007 and design work will proceed in 2008.
A further $10 million was committed to support policy development.
The funds are part of Australia’s $200 million International Forest Carbon Initiative, led by AusAID in partnership with the Department of Climate Change.
Australia also provided financial and technical support to the multi-donor Indonesia Forest Climate Alliance and is supporting Indonesia to develop information systems on forest resources and carbon monitoring.
Investing in people Overview Hundreds of schools built or expanded under the $355 million Australia Indonesia Basic Education Program were opened and education quality was improved.
The program is a centrepiece of the AIPRD and has already made a significant contribution to the Government of Indonesia’s goal of providing nine years of quality basic education to all boys and girls.
Meanwhile, hundreds of Indonesians received scholarships to study at Australian universities.
Health outcomes were improved, particularly in poor and remote areas.
Australia worked to assist Indonesia to meet the MDGs to reduce and reverse the spread of HIV/AIDS and to reduce the critically high number of women who die during pregnancy and childbirth.
Assistance continued to help Indonesia manage avian influenza in humans and poultry and to strengthen its health systems by improving access to, and the quality of, essential services.
Australia continued to help rebuild the health and education skills lost in Aceh as a result of the tsunami.
Training and hands-on assistance was provided to the next generation of teachers, nurses, doctors and university lecturers and university facilities were refurbished, including at Aceh’s leading Syiah Kuala University.
Education Permanent schools students can call their own Many children in Indonesia, particularly in poor and remote areas, lack access to good quality education.
The nearest school is often too far away or is not appropriately equipped, and the quality of training that teachers have received is variable.
The Basic Education Program is filling this gap by building or expanding 2000 schools— 1500 general secular schools and 500 Islamic schools—by the end of 2009.
This will create more than 330.000 new places for students in Years 7 to 9 in a country where nearly two million children aged 13 to 15 are not in school.
The schools were built by local people under the leadership of community construction committees, with AusAID-funded technical expertise ensuring the structures are of good quality.
In Aceh, Australia built and equipped nine schools and another six will be completed in 2008, as part of the AIPRD.
In Yogyakarta, 27 kindergartens and primary schools were built or upgraded following the 2006 earthquake.
Improved education quality and better school management The Basic Education Program also seeks to improve the quality of education in Indonesia’s schools and strengthen the way education services are managed.
In 2007, development programs for schools and education districts focused on developing strategic plans for quality and standards, improving teaching materials and training teachers and school administrators.
Australia supported the Government of Indonesia to develop national education standards, improve national examination systems and develop an inclusive policy to ensure education also caters for children with disabilities.
Australia also provided advice on a decree being developed to mainstream gender in education and increase the number of female students, teachers and administrators.
This is important considering that two-thirds of the almost 13 million Indonesians who are illiterate are women.
Outcomes achieved during the year were impressive in some areas.
Almost half of new students enrolled in schools built by the Basic Education Program were girls, a significant improvement given that many less girls than boys progress to junior secondary schooling in Indonesia.
In Nusa Tengarra Timur, a $27 million partnership has significantly improved the literacy of primary students in Ende, Ngada and Sikka districts, up from 42 per cent to 63 per cent in four years.
Teachers of grades 1, 2 and 3 were trained to implement new teaching and learning methodologies and children are now reading, writing and counting more quickly.
The program has also created more gender equity, with an 80 per cent increase in female principals and a 200 per cent increase in female supervisors.
Islamic education Approximately one in four Indonesian children receives at least part of their formal education in an Islamic school.
However, the quality of education is significantly below that provided in government secular schools.
Australia’s five-year, $30 million program to improve learning in Islamic schools seeks to redress this imbalance.
New initiatives began in 2007 to promote equal learning opportunities for boys and girls, improve the English language teaching abilities of 750 junior high school teachers and contribute to the Government’s goal of ensuring that all teachers have an undergraduate teaching qualification.
To further enrich teaching in Islamic schools, a regional symposium on basic education was held in July 2007 in association with the Ministry of Religious Affairs and the State Islamic University of Jakarta.
‘Bridging the Gap—Vision 2025’ attracted about 200 participants from the governments of Australia and Indonesia, local and international NGOs, and donors.
In Aceh, Australia continued to work with communities to rebuild Islamic schools damaged in the civil unrest.
The schools are attended by many of the poorest children and, through the $33 million program, Australia has also trained teachers and helped the provincial government to better manage education, including developing an education strategic plan in 2007.
Long-lasting results through scholarships Australia has offered scholarships to Indonesians since the 1950s, building long-lasting, people-to-people links and strengthening the human-resource capacity of public and private sector organisations.
The Australian Leadership Awards are offered to high achievers and potential leaders in social and economic development from the Asia–Pacific.
In 2007, 21 scholars were selected from Indonesia to study at Australian universities and 64 fellows were hosted by Australian organisations.
Six hundred postgraduate Australian Partnership Scholarships, funded under the AIPRD, were awarded during 2007.
Of these, 149 scholars completed their studies and returned to Indonesia.
Australian Development Scholarships were awarded to 270 scholars for research into priority areas for the Australia Indonesia Partnership, including economic management, democratic institutions and practice, basic social services, and security and stability.
An alumni conference was held in 2007 to debate issues relating to Indonesian development priorities.
Health Reducing the spread of HIV The HIV epidemic in Indonesia is among the fastest growing in Asia, and in Papua and West Papua one in 40 adults has the virus.
To combat the spread of HIV and improve the quality of life for those living with the virus, Australia announced in 2007 an eight-year, $100 million Australia Indonesia Partnership for HIV.
Work will begin in 2008.
This is a further step towards helping Indonesia meet the MDG of reducing and reversing the spread of HIV/AIDS by 2015 and improving care for people living with the virus.
Meanwhile activities continued with injecting drug users (50 per cent of whom are HIV positive), sex workers and their clients, and the general community in Papua and West Papua, where the rate of infection among adults risks becoming the highest in Asia.
Australia helped shape a national HIV policy for preventing the spread of the disease by allowing new needle syringe and methadone programs to be implemented.
All provinces supported by the $41 million HIV prevention and care project are developing regulations to support the new policy.
Three new AusAID-funded methadone treatment clinics at community health centres opened in Jakarta in December 2007 and had a rapid uptake.
The clinics provide a needle syringe program, education, counselling and testing for drug users, and access to treatment with anti-retroviral medicines.
Needle syringe programs in Java increased from around 30 in early 2007 to more than 100 by the end of the year.
These and methadone maintenance treatment programs were put in place in Bali, South Sulawesi and West and East Java, including Kerobokan and Bancuey prisons.
Significant effort went into raising public awareness to remove the stigma surrounding HIV and increase understanding of the risks of infection.
At the request of the Indonesian national news agency, Antara , journalists received training on health and legal issues so they could cover these in an accurate and unbiased way.
Health and HIV were incorporated into the education materials used by all schools in the districts of Flores and training materials for teachers in Islamic schools were developed and will be piloted in 2008.
In November 2007, Australia’s then-Ambassador on HIV, Annmaree O’Keeffe, attended a symposium in Jayapura on HIV in Papua, West Papua and Papua New Guinea.
Avian influenza Avian influenza remained a concern for Indonesia.
There were 42 cases reported in humans in 2007, including 37 deaths.
Continued infections in poultry flocks affected the livelihoods and reduced the food source of some of the country’s poorest.
Australia continued its $30 million program to help Indonesia detect and manage human cases and prevent and control the disease in poultry.
This involved working closely with Indonesia at a national and sub-national level, as well as with other major donors and multilateral organisations, particularly the World Health Organization, Food and Agriculture Organization, World Bank and United States Agency for International Development (USAID).
The investigation of, and response to, human cases improved after an avian influenza command post was established in the Ministry of Health and avian influenza guidelines developed and disseminated.
As a result, Indonesian teams now manage uncomplicated single human cases without requiring help from international experts.
In Java, Bali and Sumatra, animal health workers were trained in disease surveillance and response, which has resulted in poultry outbreaks being detected earlier.
They also help village communities respond to outbreaks.
The training program will be extended to South and West Sulawesi in 2008.
Quarantine staff were trained to use risk analysis in quarantine operations and in techniques to assess community awareness.
The capacity of Indonesian laboratories to analyse samples was further improved—70 per cent achieved results comparable with Australian labs during an external audit.
Improving the survival of mothers and newborns Indonesia’s maternal mortality rate is one of the highest in East Asia.
For every 100.000 live births, up to 400 women lose their lives as a result of complications during pregnancy or immediately after giving birth.
In several provinces, the rates are worse: in Papua, 1116 women die for every 100.000 live births, while in Nusa Tenggara Timur the rate is 554.
This compares to six deaths per 100.000 in Australia.
AusAID’s programs seek to make pregnancy and childbirth safer for women in selected provinces by increasing the number of deliveries attended by trained midwives, in line with the national Making Pregnancy Safer strategy and the Papua Governor’s Call for Action, known as RESPEK.
Working through UNICEF, AusAID strengthened the delivery of, and demand for, maternal and child health across Papua and West Papua.
Sixty midwives in Papua—around five per cent—were trained in basic delivery in 2007, with 86 per cent demonstrating proficiency three months later.
This means at least 1000 more women at reproductive age and 1800 children under five can be served by midwives, significantly improving their chances of survival.
These initiatives were supported by a campaign to raise community awareness of the need and benefits of health care during pregnancy and childbirth.
In Nusa Tenggara Timur, AusAID began a pilot for a new national $49 million program to assist Indonesia to meet the MDGs for maternal and child health.
The program will increase access to trained midwives during pregnancy and childbirth, help district governments effectively manage maternal and neonatal health services and increase funding for community-level support for new and expecting mothers.
A regional health advisor was placed with the Government to plan the most appropriate maternal and neonatal health interventions.
In Aceh, an international-standard medical training facility was completed at Syiah Kuala University which will produce more than 100 graduates in health science, including midwifery, each year.
Australia Bali Memorial Eye Centre opens The Australia Bali Memorial Eye Centre was officially opened in August 2007 in memory of the victims of the 2002 Bali bombing.
The centre is supported by mobile clinics and reverses blindness in locals who suffer from conditions such as cataracts.
Democracy, justice and good governance Overview Strong, transparent government institutions and systems are vital for delivering fair, effective services to the people.
Good governance also creates an environment in which the private sector develops and invests, while ensuring the nation’s resources are used sustainably.
At the same time, a robust civil society is important for holding governments accountable and voicing the needs of the people.
During 2007, Indonesia continued the process which began with the 1999 transition to democracy.
Elections were held in 54 local areas, including across Aceh, to elect the governor of Jakarta.
Australia supported civil society to monitor elections.
Support was also given to pilot voter education and raise awareness of the electoral process and of the people’s rights and responsibilities to vote.
Australia provided technical advice to Indonesia as it made further progress towards becoming more accountable, transparent and responsive at national, provincial and district levels.
Significant advances were also made to improve access to justice.
Open, fair and democratic elections As local elections were held across the country, AusAID funded The Asia Foundation to advise the national network of Indonesian NGOs known as the People’s Voter Education Network (Jaringan Pendidikan Pemilih untuk Rakyat or JPPR).
JPPR is a network of 35 NGOs and is an advocate for voter education and electoral accountability.
During the elections, it conducted 21 non-partisan candidate debates with voter participation and published candidates’ policy pledges, so they could be held accountable.
One of JPPR’s most important roles was to monitor elections to check they were free and fair.
More than 10.000 accredited volunteers went to almost 7000 villages to monitor 49 local elections.
Not only did their presence act as a deterrent to anyone intending to intimidate voters or subvert the election, the monitors reported their observations, which were disseminated widely (including to members of the national legislature, election bodies, academics and the media).
It was also a year of electoral firsts for Aceh.
In March, the province became the first to nominate independent candidates when citizens from Aceh Barat and Aceh Barat Daya voted for regent and vice-regent positions.
This followed the first ever direct elections in the province, held as part of the peace process on 11 December 2006, in which the Governor was elected.
Australia contributed to these historic events by joining with USAID to fund Jurdil Aceh, a local coalition of NGOs, to audit voter registration.
It found that 86.9 per cent of eligible voters were registered, demonstrating the success of voter education and election enrolments.
On 5 September 2007, the people of Aceh Jaya conducted the province’s first simultaneous direct elections, with 138 villages voting for village heads on the same day.
Simultaneous elections in 178 villages in Aceh Besar followed in November.
Australia played an important role in these elections, including working with the Aceh Jaya district government to prepare election regulations.
Women were encouraged to participate and four ran for office, resulting in the election of the first two female village leaders.
Importantly, citizens were made aware of their rights and responsibilities to vote and to hold their village heads to account in the next election if their needs are not met.
Law reform improves access to justice Significant advances were made to improve access to justice for marginalised and poor people with support provided through Australia’s Legal Development Facility.
AusAID and the Family Court of Australia worked with the Supreme Court of Indonesia to conduct the first large-scale access and equity study of the Religious Courts in Indonesia.
The courts preside over family law matters for Indonesia’s Muslim population and more than 60 per cent of users are women.
The survey found users were highly satisfied with their experience.
However, it also found that others, particularly women and the poor, did not use the courts because they found the procedures too complicated and could not afford the costs involved, leaving them vulnerable to a continuing cycle of poverty.
In response to the survey, the Supreme Court of Indonesia increased the budget for the Religious Courts to enable them to waive fees on certain cases, provide more hearings in remote locations and provide better information on how to use the courts.
Australia also contributed to a draft legal aid law to give ordinary Indonesians more affordable access to justice and supported the Supreme Court to improve transparency in the justice system by publishing judgements.
Monitoring corruption The second national Corruption Perception Index Survey, conducted by Transparency International Indonesia every two years, was published in February 2007.
Funded by the Legal Development Facility, the survey asked more than 1700 business people in 32 locations about their experience with corruption in public bodies.
This survey, and others, showed that while Indonesians viewed their Government’s anti-corruption effort in 2007 as more effective than in 2006, there was still a general belief that corruption was widespread.
Reforms deliver better public services In Aceh, Australia assisted local government to establish ‘one-stop-shops’ to deliver services more quickly, cheaply and transparently.
Community members can visit one government office and receive immediate services, such as housing allocations, welfare assistance and registration of births, deaths and marriages.
The first one-stop-shop opened in April 2007 and now 35 sub-district governments are using their own funds to replicate these best practice reforms.
Australia also participated in a donor working group to review the Governor of Aceh’s governance reform strategy.
During 2007, linkages between the Australian and Indonesian public services and universities continued to contribute to good governance through skill exchanges.
These institution-to-institution links produced positive outcomes.
For example, a partnership between the Australian Institute of Marine Science and the Government of Indonesia quantified the commercial potential of Indonesia’s marine resources.
The Western Australian agency for land and property management trained Indonesian officials to use satellite remote sensing to monitor forest fires, which in the past have caused smoke haze to drift over neighbouring countries.
A specialised training project that develops skilled trainers in the public service was adopted by several Indonesian agencies in 2007, including the State Ministry of Administrative Reform.
Women represent about a third of participants.
Empowering women and the poor Women and the poor in Indonesia often find it difficult to participate in decisionmaking and to make their needs heard.
In 2007, the $22 million Australian Community Development and Civil Society Strengthening Scheme (ACCESS) continued building community capacity and confidence to address priority development needs and voice concerns with local government.
This community-led assessment and planning process has been adopted in almost 300 villages, including in Jeneponto district.
With full support from the Jeneponto local government, the community mapped its own economic and social status into a geographical information system now being used as the basis for all poverty alleviation programs in the district.
Safety and peace Overview Disasters affect the world’s poorest the hardest and Indonesia is no exception.
The country’s climatic, geographic and seismic profiles, combined with a population of 220 million people, mean thousands are susceptible when a disaster hits.
Assisting Indonesia in times of need is a foundation of the Australia Indonesia Partnership, as evidenced by the rapid response in the wake of the Boxing Day tsunami in 2004 and the Yogyarkata earthquake in May 2006.
However, the partnership is about more than ensuring effective response.
It is about the important task of helping communities, and the governments and civil society groups that serve them, to be prepared for, and resilient to, future disasters.
Australia also contributed to maintaining peace and stability in Aceh following the end of the 30-year secessionist conflict, including by helping ex-combatants establish new lives.
Preparing for disasters saves lives Building government capacity to respond to disasters The Government of Indonesia is on the front line when a disaster strikes, so it is critical that its national and provincial disaster management agencies respond quickly and effectively.
A $1.4 million project to build the capacity of Indonesia’s National Disaster Management Agency (BAKORNAS BNPB), and build links with Emergency Management Australia, was completed in October 2007.
During the year, BAKORNAS BNPB was restructured and new disaster management guidelines drafted.
BAKORNAS BNPB and Emergency Management Australia developed a stronger relationship and senior Indonesian officers undertook study tours to Australia to improve their knowledge of disaster management, disaster coordination, insurance and relief funding.
Methods to set up Quick Response Teams, ready for a disaster, were also developed.
Strengthening communities’ preparedness and resilience When a disaster strikes, communities are often unprepared and unsure how to respond and this can make the impact even worse.
To raise community awareness and preparedness, AusAID has been working with community-based and NGO organisations, including the two largest Muslim organisations in Indonesia, Nahdlatul Ulama and Muhammadiyah.
Between them, Nahdlatul Ulama and Muhammadiyah have more than 90 million members, mostly in rural areas.
AusAID has funded these organisations to promote disaster awareness through the schools they run, particularly in high-risk provinces such as West Sumatra, Bengkulu, Yogyakarta, West and Central Java and Jakarta.
Students and teachers, as well as Nahdlatul Ulama and Muhammadiyah youth groups, are now advocates for disaster preparedness in their communities.
The $700.000 program with Nahdlatul Ulama was completed in October 2007 and a second, two-year phase, is being developed.
The $1.27 million program with Muhammadiyah will continue to mid-2008.
In Aceh, Australia helped more than 200 villages identify escape routes and prepare emergency response plans, vital to saving lives in this geologically unstable region.
Communities prepared in Mentawai and Nias Islands The Mentawai and Nias Islands are remote communities highly vulnerable to seismic activity.
AusAID’s $3.15 million emergency preparedness program, managed by SurfAID International, continues to work with isolated communities in 55 coastal villages so they can identify, prepare for and respond to disasters.
Having identified earthquakes and tsunamis as the main hazards, locals are also concerned with floods, landslides, tidal surges, tropical storms, cyclones and forest fires.
The program’s success was demonstrated when powerful earthquakes struck Western Sumatra in September 2007.
Many affected villages confidently and quickly put their training into practice, resulting in only limited casualties.
Readiness programs in Yogyakarta-Central Java Since the Yogyakarta earthquake, as reconstruction has progressed, community-based disaster readiness activities have helped more than 5000 people be better prepared should another disaster strike.
Local disaster management groups and plans were established in 2007, promoting cooperation and encouraging local independence in handling disasters.
This will help the people mobilise themselves during disasters and become self-reliant in the aftermath.
Training programs taught techniques such as life saving, evacuation drills and building safe and weatherproof shelters.
Teachers were also trained and are passing their knowledge on to colleagues and students.
AusAID better prepared During 2007, AusAID increased its own capacity to respond to emergencies.
The Rapid Response Team received extensive training, deployment equipment was upgraded and preparations began for a warehouse to store emergency equipment and supplies in Jakarta, to be opened in 2008.
Standing arrangements with key emergency response partners were maintained.
Assisting Indonesia in times of disasters Indonesia experienced several small- to medium-scale disasters in 2007 and the Government of Australia provided emergency assistance where needed in consultation with the Government of Indonesia.
Australia also worked closely with the Indonesian Red Cross, the International Federation of the Red Cross and Red Crescent Societies, and the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) to assess and respond to emergencies.
Australia provides core funding for UNOCHA to maintain its presence in Indonesia.
Responses to disasters were timely and accounted for the scale of events, the capacity of local communities and government to respond, gaps in assistance and areas where the most significant impact could be made.
When Jakarta and surrounding areas were swamped by floods in February 2007, Australia contributed $250.000 through the Red Cross and World Food Programme to provide emergency food parcels and supplies.
A 70-kilometre per hour windstorm struck Yogyakarta the same month, damaging more than 1000 houses.
In response, Australia provided $30.000 to distribute clean drinking water and other supplies, and to support the community kitchens, that served more than 8000 food packages each day of the response.
In April, the Indonesian Environment Minister requested Australia’s help to respond to an ongoing mudflow from a ground fissure near a gas drilling site in Sidoarjo, East Java.
The mud affected more than 12.000 houses, dozens of factories and rice fields, and almost 40.000 residents were evacuated.
Australia provided $90.000 for a United Nations Environment Programme project to develop environmentally and economically viable solutions to mud management and disposal.
In September, a massive earthquake measuring 8.4 on the Richter scale struck Bengkulu and Padang provinces, affecting more than 27.000 people.
Australia contributed $50.000 for immediate relief through the Indonesian Red Cross and a further $150.000 through SurfAID to help people rebuild their lives.
Australia funded UNICEF and the World Food Programme to work with district governments in Nusa Tenggara Timur and Nusa Tenggara Barat to address food insecurity and malnutrition, particularly among children aged up to 13 years and pregnant and lactating women.
The work has improved the nutritional status of these groups and strengthened government systems in food security surveillance and response.
In July, AusAID provided support when migratory locusts devastated agriculture in Nusa Tenggara Timur.
It provided $700.000 to the Food and Agriculture Organization to provide ground-control equipment and training for the most affected districts, and worked with the Government of Indonesia to introduce a safe bio-pesticide that would allow the reintroduction of aerial spraying in Indonesia.
A program to assist victims of the bombing of the Australian Embassy in Jakarta in 2004 was completed in 2007, although medical and education support is ongoing 
Peace in Aceh 
The devastation Aceh suffered after the tsunami often overshadows the effects of the 30-year secessionist conflict that preceded it.
Before the tsunami, Aceh was the fourth poorest province in Indonesia, due in part to the damaging economic and social consequences of violent conflict.
The peace process progressed in 2007, building on the Memorandum of Understanding signed in August 2005 between the Government of Indonesia and the Free Aceh Movement (Gerakan Aceh Merdeka—GAM).
Former combatants continued to integrate back into the community—most notably, a former GAM leader is now Governor of Aceh.
However, difficulties remained, with up to seven out of 10 former combatants unemployed.
AusAID’s work in the aquaculture sector—the main local industry before the tsunami hit—helped many establish alternative livelihoods, supporting peace efforts and long-term stability in Aceh.
The profits of peace After the 30-year armed conflict in Aceh had ended and peace was being restored, Ismail Muhammad wondered what his life would hold.
A former GAM commander, he was concerned about his livelihood.
Before the conflict he was a prawn farmer in Samuti Krueng village, but his business had ground to a halt as it had for many others in Aceh where prawn had been a lifeline—as a food source, as employment and as a valuable cash crop.
Ismail’s life took a turn for the better when he met experts in prawn production from the International Finance Corporation who, with AusAID funding, provided advice on how he could better manage his ponds and generate greater returns from his efforts.
After releasing 30.000 prawn seeds to his ponds Ismail began cultivation.
His first harvest was a massive 412 kilograms of large prawn, which he sold for 19 million IDR (approximately $2,250).
It was a net profit of 14 million IDR—13 million more than Indonesia’s average monthly income.
Australia Indonesia Partnership for Reconstruction and Development Post-disaster recovery in Aceh and Nias (2005–08) Executive summary Three and a half years after the Boxing Day 2004 tsunami, tangible results of reconstruction are evident in the province of Aceh.
Communities have been restored, and some are thriving.
Children have long since returned to the many schools that have been rebuilt.
While the physical, economic and emotional scars of the earthquake and tsunami remain, the reconstruction of the province is well advanced and the town of Banda Aceh is alive night and day.
Along the area most severely affected—the west coast—there are banks of new houses and freshly painted village halls, schools and health clinics.
The town of Calang, which experienced the death of more than 80 per cent of its population and became completely inaccessible by road, now has markets, restaurants, coffee shops and a new hotel.
Roads are being repaired and bridges are being built.
The outlook for the Acehnese people is also more positive following the cessation of 30 years of conflict.
People can now travel throughout the province with less concern for their safety since the signing of the Memorandum of Understanding (MoU) on Demobilization, Demilitarization and Reintegration in August 2005.
According to one former activist: ‘this is the best time in Aceh in the last 30 years’.
The Australian Government has committed more than $250 million in emergency response and reconstruction assistance, this includes a significant contribution from the $1 billion package of assistance to Indonesia—known as the Australia Indonesia Partnership for Reconstruction and Development (AIPRD).
This much-needed aid has supported the recovery of communities in many ways, including through the reconstruction of public infrastructure in Aceh and Nias, such as schools, health facilities and the port at Banda Aceh.
Australian efforts have focused on consolidating investments in physical reconstruction by helping the Acehnese develop the skills necessary to manage continuing improvements in these sectors.
The loss of life following the tsunami hit the health and education sectors hard with the loss of thousands of doctors, nurses and teachers.
Australia, through the Australian Agency for International Assistance (AusAID) has provided training to rebuild these lost skills, including for 230 hospital workers, thousands of nurses and midwives, and 1750 teachers.
New technical training facilities and management systems have been put in place to provide future generations of professionals in these sectors with the skills required to deliver high-quality services.
AusAID has also worked closely with communities and local government in disasteraffected areas to establish ‘one-stop-shops’ to improve the delivery of local government services to the people of Aceh.
Village elections have been revitalised with Australian assistance, and community participation in the electoral process has been enhanced, which is helping to ensure local governments are held to account for their actions.
AusAID has also worked with communities on the remote island of Nias to restore essential community infrastructure and improve government capacity to maintain and manage rebuilt infrastructure.
Australian assistance has also played a small but important role in helping people return to income-generating work.
In aquaculture, AusAID has worked with farmers and government outreach workers to increase yields of crops such as prawns.
The Australian Government has also employed thousands of Acehnese workers on its reconstruction projects and has trained local tradesmen in housing construction and advocacy so they can both build and advocate for better-quality housing.
However, the devastation suffered in Aceh and Nias as a result of one of the deadliest disasters in modern history cannot be underestimated.
Neither can the impact suffered by the people from the proceeding 30-year conflict.
Reconstruction has progressed, but many issues related to the conflict remain unresolved.
Former Free Aceh Movement (Gerakan Aceh Merdeka—GAM) combatants, for example, are experiencing high levels of unemployment.
Tensions also remain regarding the inequitable distribution of resources across the province, with high levels of aid going to tsunami-affected areas.
Supporting stability and peace, and rebuilding communities, remain significant challenges for the people of Aceh, government, civil society groups and international donors.
The job is far from over.
Australia is committed to supporting Aceh’s success beyond the reconstruction effort and to ushering in a new era of prosperity for the province.
This report details the achievements of the Australian reconstruction program in Aceh and Nias, and points to a positive future for the province.
Total Australian expenditure in Aceh and Nias to June 2008 
Immediate humanitarian assistance—AusAID 34.4 34.4 
Immediate humanitarian assistance—other Australian Government departments (primarily Defence under ‘Operation Sumatra Assist’) 37.4 37.4 AIPRD Aceh and North Sumatra project commitments 181.0 154.9 
Aceh Rehabilitation Programs—restoring health, education and local government services ($80 million) 
Community infrastructure ($25 million) 
Livelihoods—restoring aquaculture and cropping ($5 million) 
Education research and training ($3 million) 
Housing and temporary shelter ($10 million) 
Rebuilding schools in conflict-affected areas ($10 million) 
Regional enterprise development ($7 million) 
Nias community infrastructure and technical assistance ($10 million) 
Aerial mapping ($10 million) 
Ulee Lheue port ($8 million) 
Humanitarian food aid ($10 million) 
Technical assistance for improved governance ($3 million) 
Background 
The Indian Ocean earthquake and tsunami disaster of 26 December 2004 caused massive devastation in Aceh, Indonesia’s western-most region.
An estimated 167 000 people died and around 500 000 were left homeless.
Some 800 kilometres of coastline were destroyed and more than 3000 hectares of land washed away or badly inundated by seawater.
Ports, roads and bridges were also destroyed.
Thousands of schools, health facilities and water sources were damaged or destroyed and sources of local livelihoods debilitated.
The island of Nias suffered the dual impact of the tsunami and a massive earthquake on 28 March 2005.
The island—already facing difficulties because of its isolation and inadequate income opportunities, limited human resource capacity and poor infrastructure—lost 11 ports, 403 bridges and more than 1000 kilometres of local and provincial roads.
Australians responded quickly and generously to the disaster.
Defence force personnel, nurses, doctors, logisticians and aid workers were some of the first rescue teams on the ground in Aceh.
From those early days Australia committed to working closely with the Indonesian Government to attend to the immediate needs of the survivors and to start to put in place the people and institutional architecture needed to deal with the massive rehabilitation and reconstruction task ahead.
Within days of the disaster Australia announced a five-year, A$1 billion package of assistance to Indonesia.
The AIPRD, managed jointly by the governments of both countries, has since supported reconstruction and development efforts in and beyond tsunamiaffected areas.
The Australian Government committed more than $250 million to the North Sumatra emergency and reconstruction effort.
This includes $181 million in AIPRD funds for reconstruction and rehabilitation activities in Aceh and Nias.
Australians also privately donated more than $350 million for tsunami relief and reconstruction programs delivered by Non-Government Organisations (NGOs).
The Australian Government program in Aceh has focused on the sectors most critical for reconstruction: health, education, infrastructure, livelihoods and governance.
This has included the rebuilding of community facilities such as the emergency ward of the main hospital in Banda Aceh, health clinics, schools and village halls across the province.
Australia’s assistance has also helped address the significant skills shortages caused by the tsunami with the loss of thousands of doctors, nurses, teachers and government officials.
Since the tsunami real opportunities have emerged for peace and development in Aceh.
The province is recovering not only from the tsunami but also from more than 30 years of conflict between the Government of Indonesia and the GAM.
Before the tsunami, an estimated 1.2 million people (28.5 per cent) lived below the poverty line.
Capacity for service delivery and governance was weak and fractured.
In 2004, Aceh was the fourth-poorest province in Indonesia.
Two years after the tsunami poverty levels increased further, leaving Aceh the second-poorest in Indonesia.
Poverty levels are now improving as a result of the peace process and reconstruction effort.2 The MoU signed in August 2005 between the Government of Indonesia and the Free Aceh Movement has resulted in the surrender of weapons by GAM, the demobilisation of thousands of former political prisoners and combatants and the redeployment from Aceh of government troops and police.
In December 2006, a former GAM leader was elected Governor of Aceh in peaceful elections.
Since the signing of the MoU, trust between the two sides has increased.
Also, since the passing of the Law on Governing Aceh in 2006, Aceh has obtained a degree of economic and political autonomy.
The challenge for Aceh now is to manage the broad range of powers and responsibilities that have been devolved to the region.
This report gives an overview of the achievements of the Australian reconstruction program in Aceh and Nias, draws lessons from the unprecedented reconstruction effort and discusses AusAID’s transition to ongoing development work in the province.
Within days of the disaster Australia announced a five-year, $1 billion package of assistance to Indonesia.
The AIPRD, managed jointly by the governments of both countries, has since supported reconstruction and development efforts in and beyond tsunami affected areas.
Program design and approach After the immediate emergency following the tsunami was brought under control in Aceh, the sheer enormity of the technical, logistical, social and regulatory challenges became apparent.
As the death toll mounted and the full extent of damage and loss emerged, the realisation dawned that reconstructing schools, roads, ports and houses was only part of the job ahead.
Rebuilding the capacity of Aceh’s workforce was to be just as challenging.
Every sector of Aceh was in dire need of assistance.
Hundreds of donors and NGOs poured into Aceh with billions of dollars in donations to go toward reconstruction.
AusAID set out to establish a significant, yet short- to medium-term response to the disaster in a difficult operating environment.
Following 30 years of conflict in the region, the Aceh Rehabilitation Program started from virtually a ‘zero base’.
Before the tsunami, there were few donors or NGOs operating in Aceh, no existing arrangements upon which to build, no staff on the ground and no supply chains.
Australia’s partnership with Indonesia became the cornerstone of AusAID’s efforts in Aceh.
The AIPRD introduced a new agreement for a closer development partnership between the Australian and Indonesian governments.
The AIPRD formalised a government-togovernment commitment to partnership at the highest level.
AusAID took a pragmatic approach to developing the suite of programs that together make up the Aceh Rehabilitation Program.
To be effective, the programs needed to respond to the changing environment, build on activities that were working and remain flexible.
Formal and informal partnerships were established at every level.
Decisions regarding allocation of funds were made by a Joint Commission overseen by the Australian Prime Minister and the Indonesian President, and the foreign affairs ministers and economic ministers from both countries.
Advisers worked closely with the officials of the Indonesian Government who were responsible for reconstruction.
Sector program managers were placed in provincial government offices and a wide network of locally engaged staff employed by AusAID worked at the village level.
This approach was valued by both the Indonesian Government and the Acehnese population.
Australia became known as a partner that understood Aceh’s needs and could be called upon when challenges had to be tackled.
Program goal and principles The goal of the Aceh Rehabilitation Program was to contribute to the recovery and development of Aceh and Nias in ways that would meet the needs and aspirations of its people and communities.
To ensure this goal was reflected in all of AusAID’s work, five principles were defined to guide the design and development of Australia’s assistance in Aceh:
Work alongside national and provincial governments The formal partnership between the Australian and Indonesian governments ensured AusAID sought the early and continuing involvement of Indonesia in developing and delivering the reconstruction program.
Programs worked through existing systems, rebuilding and strengthening them in the process.
Where possible, AusAID teams were placed in local government offices.
Leverage funds and complement other programs It was not a lack of funds but complex logistical and planning challenges that caused difficulties and slowed down reconstruction.
AusAID worked to complement Indonesian Government and other donor programs and to strategically fill the gaps impeding progress.
Focus on essential services AusAID focused only on sectors that provided essential services to the population.
Training teachers and nurses, rebuilding schools, providing essential equipment and resources, and streamlining administrative processes of local governments had an immediate effect on the quality of public services delivered to tsunami victims.
Target the most vulnerable and poor AusAID worked hard to maintain a focus on meeting the needs of people first, and then finding ways to implement good ideas.
AusAID quickly deployed and placed numerous advisors in local institutions (government and civil society) to gather information about needs, seek out where AusAID could be most helpful and develop a program from there.
Work in areas where AusAID has a comparative advantage Even though AusAID did not have a program of assistance in Aceh before the tsunami, Australians had a wealth of experience in other parts of Indonesia.
By carefully teaming up this expertise with Acehnese advisors, AusAID could adapt proven methods of intervention to specific Acehnese circumstances.
Report against sectoral outcomes The Aceh Rehabilitation Program commenced in January 2005 as a medium-term reconstruction program.
AusAID developed programs in health, education, infrastructure, governance, and livelihoods for disaster-affected areas in Aceh and on the island of Nias, focusing on these outcomes: > services—health and education services that meet the needs of the people of Aceh, in which they can have confidence > infrastructure—infrastructure and equipment that is used well and can be maintained > governance—communities and governments that work together to meet community needs > livelihoods—support structures and systems that assist economic growth.
Australia’s key achievements against these sectoral outcomes are detailed throughout this section.
Health Commitment $28.2 million Expenditure estimate as at June 2008 $28.1 million Damage Three decades of conflict, combined with the impact of the tsunami, left health services and infrastructure in dire shape and unable to adequately meet the province’s needs.
More than 120 health facilities were damaged or destroyed.
Aceh’s main hospital, Rumah Sakit Zainoel Abidin, was badly damaged in the tsunami and 10 per cent of its medical staff went missing or were declared dead.
At least seven other hospitals and 11 provincial health centres were destroyed.
Achievements summary 
restored emergency health care at the Zainoel Abidin Hospital 
re-established administration systems at the Zainoel Abidin Hospital 
established medical skills laboratories at Syiah Kuala University and Zainoel Abidin Hospital to train future health professionals 
improved provincial health-service management processes 
upgraded four health clinics and reconstructed a midwifery academy 
reconstructed two pharmaceutical warehouses and re-established medical supply chains 
refurbished buildings and laboratories at Banda Aceh’s Health Technical College 
provided training and professional development for more than 230 hospital staff 
awarded more than 3700 scholarships to nursing, midwifery and healthcare students
Australia responded quickly to needs in the health sector by restoring emergency health care at Zainoel Abidin Hospital—Aceh’s major hospital.
This facility is now fully operational and is treating more than 1000 patients a month.
The health service was further strengthened through the training of health workers.
Provincial health-service management was strengthened through targeted assistance to departmental planning and budgeting.
With Australia’s help, the Provincial Health Office in Aceh was refurbished and Aceh’s first strategic health plan and health action plans are being implemented.
One of Australia’s most important contributions during 2007 was the establishment of facilities to train and develop future generations of Acehnese health professionals.
Undergraduate medical students can now learn to use the most modern techniques and equipment available in Indonesia in the laboratory established at Syiah Kuala University.
The laboratory will train some 1000 students annually, producing approximately 200 graduates each year.
Post-graduate students will study real-life cases at Syiah Kuala University.
In addition, Australia supported the refurbishment of the environmental and microbiology laboratory, the nutrition laboratory and the main administration buildings at the Health Technical College in Banda Aceh.
Education Commitment $45.25 million Expenditure estimate as at June 2008 $36.3 million Damage The tsunami devastated the education sector in Aceh.
More than 2100 schools were damaged or destroyed, including more than 1500 primary schools, nearly 300 junior secondary schools, as well as kindergartens, technical and vocational schools and institutes of higher education.
About 2500 teachers and 38 000 students died in the disaster and 150 000 students lost access to education facilities.
This followed the 30-year conflict in Aceh, which had already reduced the quality of education.
During this period many teachers refused to work in areas affected by the conflict and an estimated 900 schools were destroyed by the parties to the conflict.
Working with communities to rebuild schools The Australian Government has provided $2.65 million to support the establishment of a school at Suak Timah, which will provide education for local primary and secondary students.
People from the area were closely involved in planning and monitoring the building process over the past two years, and donated the community’s football field to be the site of the new school.
Community leader Tgk H Abdullah Agam said the people wanted to give their children a new start after the tsunami by providing them with a school and a future through education.
‘This top-class school will now become a place of quality education for our children, as well as a place for the community to gather,’ he said.
Achievements summary 
improved school and asset management by: – refurbishing 84 schools through small grants – providing training for 101 schools to better plan and manage budgets and resources 
completed reconstruction of 13 schools and three education administration facilities 
continued with ongoing refurbishment of 43 primary schools in conflict-affected areas 
delivered 11.000 books to school libraries
helped implement the Aceh Provincial Education Strategic Plan 
improved teaching services through the professional development of 1750 teachers 
provided training for almost 1000 school committee members and government education officials in conflict-affected areas 
developed materials for Aceh’s three primary-teacher, pre-service training institutions 
provided training in income-generation activities for 231 female staff members in Islamic schools 
It is estimated that more than 80 000 children have so far benefited from Australian assistance to Aceh’s education sector.
Attention focused initially on rebuilding school buildings, a centre for teacher training at the local university and two government education offices.
AusAID then focused on strengthening the administration and delivery of education services, which revitalised school-based management programs and improved the quality of education.
The local government continues to offer a training program for teachers and principals, based on manuals developed with the help of AusAID.
The local university received technical expertise to improve the teacher-training curriculum.
More than 900 teachers will benefit from these improvements every year.
In several areas where education standards and quality had been particularly affected by decades of separatist conflict, AusAID brought divided communities back together around the issue of education.
This approach has led to improved attendance of students and teachers, as well as greater village cohesion and more inclusive decision making.
It has ultimately resulted in more stable, peaceful village environments.
This assistance will continue over the course of 2009.
Australia is also working to increase female participation in decision-making positions within school committees.
Results have been impressive, with representation of women on most committees increasing by almost 40 per cent.
Studies have shown that female participation in social institutions results in reduced conflict and an increased focus on improving the quality of education.
Infrastructure and housing Commitment $27.5 million Expenditure estimate as at June 2008 $20.4 million Damage Around 85 per cent of all infrastructure in Banda Aceh was damaged by the earthquake and the tsunami.
With more than half a million people made homeless, approximately 120.000 new, permanent houses were required.
Aceh’s main port bore the brunt of the tsunami and became completely separated from the mainland when the causeway washed away.
Damage to more than 3000 kilometres of roads, 120 bridges and 14 ports cut off access to many parts of the coast.
This infrastructure had to be rebuilt to ensure supply of basic needs and materials for reconstruction.
Above: Australia assisted village reconstruction by helping to map more than 88 000 plots of land and disbursing small grants to communities to repair uninhabitable houses and establish maintenance programs.
Photo: AusAID Left: Construction work at the Ulee Lheue Port, Banda Aceh.
Photo: AusAID Achievements summary 
assisted with the repair of Ulee Lheue Port, including on the construction of a permanent ferry terminal 
built more than 1200 temporary shelters and equipped them with water and sanitation 
improved the skills of more than 470 Acehnese construction workers involved in the reconstruction effort 
brought together construction workers and technical experts in teams to help NGOs deliver on their housing commitments 
helped the Indonesian Government Agency for Reconstruction and Rehabilitation and NGOs accelerate permanent-housing reconstruction 
re-established land boundaries of more than 88 000 land plots to allow housing construction to start 
trained 203 village crews and provided toolkits for minor housing repairs and maintenance 
disbursed small grants to 45 communities to repair uninhabitable houses and establish maintenance programs 
rebuilt 175 village halls 
Following Australia’s assistance to repair Aceh’s main seaport at Ulee Lheue, 900 passengers now transit the terminal daily, an increase of 50 per cent since 2005.
Australia has also built a new permanent ferry terminal to house port administrators and a number of small businesses with a large shelter area for passengers.
Australia has provided the Indonesian Government and other reconstruction organisations with detailed digital maps for more than 14 400 square kilometres of coastal areas of Aceh and Nias and Simeulue islands.
These maps continue to be used for reconstruction planning and to identify changes in Aceh’s topography.
AusAID is also helping the Indonesian Government map reconstructed assets so they can be transferred to the local government agencies responsible for managing them over the long term.
Rebuilding village halls was also a priority, with a total of 175 new facilities now constructed.
These were designed in close consultation with communities and village leaders and have become centres for village government and community activity.
The Indonesian Government has indicated that as of April this year, enough houses had been rebuilt.
The quality of some, however, remains an issue.
Quality issues were in part the result of Aceh’s construction industry being stretched beyond its capacity due to the amount of reconstruction.
Australian advisers played a critical role in helping the Agency for Rehabilitation and Reconstruction (Badan Rekonstruksi dan Rehabilitasi – BRR) address the challenges in the housing sector, by focusing on issues such as certifying beneficiaries and establishing quality assurance systems.
Achenese construction workers, builders, plumbers and electricians were given government-certified, on-the-job and classroom training in housing reconstruction.
Australia also helped NGOs build permanent houses to improve the quality and speed of construction, and stimulated communities to take a more active role in building houses.
Communities were introduced to building quality standards so they could monitor construction and advocate for better-quality houses from housing providers.
This was backed by an $1.5 million small grants program to fix minor defects in newly rebuilt houses in the 45 worst-affected villages.
Rebuilding village halls was also a priority, with a total of 175 new facilities now constructed.
These were designed in close consultation with communities and village leaders and have become centres for village government and community activity.
Governance Commitment $47.9 million Expenditure estimate as at June 2008 $42.7 million Damage The tsunami and 30 years of conflict severely diminished the capacity of the Aceh Government to respond to people’s needs and deliver services.
It also weakened the relationship between villages and sub-district governments.
Many village and sub-district government leaders and more than 5000 public officers lost their lives in the tsunami.
Equipment and paperwork were washed away, government buildings destroyed and service delivery completely disabled.
As a result, the response has required not only the reconstruction of buildings, but also training for newly-recruited officials.
Achievements summary
delivered specialised training to more than 700 local government officers on leadership, planning, budgeting, conflict resolution and transparency
implemented a ‘one-stop-shop’ service-delivery model to streamline public service delivery in 51 sub-district governments—now being replicated across Aceh
constructed seven sub-district government offices
facilitated democratic village head and council elections in 270 villages (two female village heads were elected—for the first time in Aceh)
trained 2300 people as community leaders (more than half women) across 204 villages Above: Building citizens’ awareness of election processes and their role in democratic society helps to improve the quality and transparency of government services.
Photo: AusAID Left: Australia helped to streamline government reconstruction services through single service windows—allowing Acehnese people to obtain a range of services from one place— quickly, cheaply and transparently.
Photo: AusAID Supporting the participation of women in the political process In the district of Aceh Jaya, three women stood for the village head election.
In the village of Tuwi Kayee, Ibu Tasyariah, a mother of five, conducted a successful campaign.
Her vision for the village included three broad goals: 
to expand the role of women in the village; 
to develop a healthy and prosperous village; and 
to strengthen village spirituality.
The development of the marketplace and the village road to the rice fields are Ibu Tasyariah’s top priorities.
‘The old market was burnt during the conflict and currently the village community has to go to Panga market to shop,’ said Ibu Tasyariah after her win.
For a population of 218, the road is essential to support their agricultural work. 
Australia supported activities to increase voter awareness and provided targeted support for women to stand for election in key leadership roles, including training courses in community decision making.
Zainab, one of the women who voted at Mon Mata Village, Setia Bakti Sub-District, said it was the first time a village head election was well managed: ‘Previously we just came to the village hall and saw who was nominated, and then we selected one.
Now, we know exactly how we vote and what he or she will do if elected as village head.’ Achievements, 2007-08 Australia continues to work to strengthen communities and local government services and build stronger links.
Australia targeted essential-skills training at the sub-district level.
More than 700 local government officials were trained in leadership, information technology skills, planning, budgeting, negotiation and conflict resolution.
Australia also supported committed officials to establish ‘one-stop-shops’ to deliver government services at the sub-district level.
Affected communities can now obtain information and services related to housing allocations, welfare assistance and registration of births, deaths and marriages cheaper, quicker and more transparently than ever.
The system is so successful that sub-district governments throughout Aceh are using their own funds to replicate these reforms.
Australia trained 2300 community members from 204 villages to lead the village planning and reconstruction process.
Implementation of 730 village-improvement plans will see villages address their own needs such as obtaining access to clean water, farming equipment, electricity, child care and other essential services and resources.
On 5 September 2007, the people of Aceh Jaya District made history by being the first to conduct simultaneous direct village head elections.
Australia worked with the Aceh Jaya district government to prepare election regulations and supported the election process by explaining regulations and procedures and increasing people’s awareness about the importance of the elections.
By supporting free and fair elections at the local level, Australia contributed to improved government services.
Citizens are now aware of their right and responsibility to hold their village heads accountable for government transparency and service delivery.
Women were active participants in the first ever direct elections in Aceh in 2006—including voting and standing for office—and their participation in community decision making will continue to be supported.
Photo: AusAID Livelihoods Commitment $22.1 million Expenditure estimate as at June 2008 $21.2 million Damage The tsunami devastated sources of livelihoods for many of Aceh’s coastal people, compounding the damage already sustained to the economy by the 30-year conflict.
Aquaculture was a thriving local industry, supporting more than 100 000 smallholders until the tsunami damaged or destroyed more than half the province’s prawn ponds and hatcheries.
There was a huge amount of damage to infrastructure, coastal fish reserves and soil fertility along 800 kilometres of Aceh’s coastline.
Seawater and sediment inundated the coastline, including agricultural land.
Achievements summary 
boosted prawn harvest by 30 per cent for participants in an Australian-funded project, and reduced pesticide use by 60 per cent 
reconstructed Aceh’s main prawn hatchery and training centre for prawn farmers 
established a temporary laboratory at Aceh’s premier technical aquaculture facility to support staff to disseminate better aquaculture management practices 
trained 2890 small business clients throughout Aceh and Nias in business planning, marketing advice and financial management 
established an online-booking facility to improve local hotel services 
formed 27 village micro-credit groups to help develop livelihoods and small self-help initiatives such as fish and prawn farms, motorcycle taxis, small restaurants and tailoring 
trained 81 agricultural extension workers to advise farmers on better soil-management practices for crop cultivation 
The Australian-funded Private Enterprise Partnership for Aceh and Nias continues to provide advisory services to help small- and medium-sized enterprises improve the business environment, restore livelihoods in strategic sectors such as aquaculture, increase access to finance and improve the availability of business-development services.
Helping people get back to paid work has been critical to restoring self-sufficiency for tsunami victims and constitutes an important step in ensuring that peace in Aceh is sustained.
As employment opportunities associated with the reconstruction boom wind down, ensuring that ex-combatants establish alternative livelihoods will be critical to the long-term stability of the province.
Aceh is a major prawn producer.
Before the tsunami prawn production supported more than 100 000 smallholders—one of the largest cash crops in Aceh.
To help revitalise the industry, Australia, with help from the Australian Centre for Agricultural Research, has rebuilt the prawn hatchery and re-established a training centre for prawn producers.
Better management practices have helped some prawn farmers double their incomes through increased yields.
The Aceh Ministry of Fisheries will disseminate better management practices to farmers across the province.
It is expected that reliable, high-quality yields will attract investors to process prawns in Aceh.
Australia has also funded work to improve aquaculture in Aceh by rehabilitating the province’s peak aquaculture technical facility.
This has included rehabilitating infrastructure at the facility and working with staff to develop their skills so they can better meet the technical needs of the local aquaculture industry.
Australia has been working with farmers and agricultural extension workers to restore soil fertility so farmers can once again produce rice and other crops such as peanuts and soybeans.
Crop yields have increased where improved practices have been adopted.
Training has been provided to 81 local government agricultural extension workers who, in turn, will train farmers—a flow-on effect expected to spread the benefits of these improved practices throughout tsunami-affected districts.
AusAID and the International Finance Corporation opened the Investor Outreach Office in March 2007 as part of a $7 million program to encourage private sector investment in Aceh.
It provided support to 40 investors and delivered business training to 800 people.
Helping ex-combatants establish alternative livelihoods Australia’s work in the aquaculture sector has played an important role in supporting peace efforts in Aceh by providing alternative livelihoods for ex-combatants.
Ismail Muhammad, a farmer from Samuti Krueng village in Bireuen, is a former GAM commander who became a participant in the Australian-funded prawn restoration program in 2007.
As part of the program, he received ongoing advice on how to better manage his ponds.
Ismail’s efforts paid off.
In his first prawn crop, his total production was a huge 412 kilograms of large-sized prawns.
He sold his harvest for a profit of almost $1500 in a place where the average monthly income is only $110.
Ismail is happy with his results: ‘I had a very good crop, good profit and good size of prawn.’ A farmer brings in a netful of Acehnese Monodon prawns, considered among the best in the world.
With support and training provided by Aceh’s peak aquaculture prawn hatchery— rebuilt by Australia after the tsunami—farmers are increasing their yields, ready for market.
Helping people get back to paid work has been critical to restoring self-sufficiency for tsunami victims and constitutes an important step in ensuring that peace in Aceh is sustained.
As employment opportunities associated with the reconstruction boom wind down, ensuring that ex-combatants establish alternative livelihoods will be critical to the long-term stability of the province.
Nias Commitment $10.0 million Expenditure estimate as at June 2008 $6.2 million Damage After the tsunami, Nias Island suffered the second blow of an earthquake on 28 March 2005.
The impact of these two disasters, combined with the economic effects of geographical isolation, has left Nias as one of the most underdeveloped areas in Indonesia.
Australia is contributing to the recovery and wellbeing of communities by rehabilitating and reconstructing community infrastructure and restoring local government services.
Australia’s assistance to Nias will continue in the coming years.
Achievements summary 
supported 96 small-scale community infrastructure projects including access roads, bridges, suspension bridges, retaining walls and water supply infrastructure—work is complete on 34 projects and a further 62 projects will be completed by January 2009 
facilitated community-planning workshops across 57 villages to map community infrastructure needs and future development goals 
reconstruction of 10 sub-district offices—six will be finished by October 2008 and four by March 2009
trained government officials across four sub-districts to manage and maintain infrastructure.
Australia’s work in the district of South Nias—the poorest district in Nias—supports small-scale projects designed to rebuild community infrastructure such as basic bridges, access roads, erosion control walls, and water and sanitation facilities.
Australia has assisted communities in South Nias to improve their lives by investing in small community infrastructure.
This photo shows a drainage system constructed by Hilindrasoniha village, Telukdalam sub-district, South Nias district.
Photo: Elfrietz Berkani, AusAID 
Australia’s work in the district of South Nias—the poorest district in Nias—supports smallscale projects designed to rebuild community infrastructure such as basic bridges, access roads, erosion control walls, and water and sanitation facilities.
Communities identify these projects as priorities and build the infrastructure themselves.
In the process, community members are taught basic concepts of project and financial management.
Village residents benefit either through employment opportunities associated with implementation, or directly through infrastructure improvements.
Although small in scale, these projects bring about substantial improvements for residents of these village communities.
Communities now have improved access to schools, government services, emergency services and markets.
Water and sanitation facilities are helping to reduce sickness, particularly in children.
Improved access to water is empowering women—they are saving the time previously spent transporting water to their households, which gives them more time to invest in productive activities.
Australia is also rebuilding five sub-district government offices and providing targeted assistance to sub-district governments.
This includes training and coaching for local government officials with a focus on government investment in community infrastructure, including maintenance processes.
Communities building an access road for Koendrafo village, Lolomatua sub-district.
Photo: Juni Sembiring.
AusAID Transition to ongoing development work Reconstruction of the damage done by the tsunami is nearing completion and the quality of infrastructure in Aceh is reaching a level comparable to the situation before the disaster hit.
However, further work is required to ensure Aceh has the best chance to fully recover.
The security situation has improved significantly following the peace agreement in 2005 and the people are optimistic, particularly with the significant increases in government funding flowing into the province.
However, concerns remain around high levels of poverty and unemployment and limited government service delivery following 30 years of civil conflict.
As reconstruction comes to an end, the Australian Government remains committed to working with Aceh to support long-term peace and prosperity.
Over the next five years, Australia will provide up to $50 million in funds to Aceh to help strengthen service delivery and build sustainable economic opportunities for a peaceful, prosperous future.
Australia will support a shared government and donor approach to peace and development assistance in Aceh.
This will include promoting a joint government-and-donor strategy, focusing on, and aligning efforts to, ensure that government funding meets the needs of the people.
Australia will continue to work with the Indonesian Government and other donors to help local governments in Aceh deliver better services and strengthen democratic processes.
This will include helping local governments improve their services to constituents, helping citizens demand better governance and introducing practical transparency and accountability measures.
Australia will also build upon the success of the post-tsunami education program to deliver better education in Aceh.
This will include continuing work in conflict-affected areas to rebuild schools and promote community participation in education.
To support peace efforts and long-term stability, Australia will also focus on getting people into paid employment, including women who have traditionally been excluded from the workforce.
Australia will continue to work with the Indonesian Government and other donors to help local governments in Aceh deliver better services and strengthen democratic processes.
Australian support for peace and development in Aceh The dual impact of the tsunami and 30 years of civil conflict left Aceh as one of Indonesia’s poorest provinces.
Since the tsunami, Australia has rebuilt health and education facilities and village halls at the heart of communities, supported housing reconstruction through land mapping, strengthened democratic processes and improved government service delivery.
In June 2008, Prime Minister Kevin Rudd announced a $50 million initiative to support peace and development in Aceh.
This forms part of Australia’s new five-year development partnership with Indonesia.
Over the next five years, Australian assistance in Aceh will work to: > build sustainable economic opportunities for the Achenese > invest in the people by improving the quality of education for Acehnese children > help governments deliver better services > help community members, including women, to participate in decision-making and democratic processes > promote a safe and peaceful Aceh.
This substantial longer-term commitment to Aceh is integral to Australia's development partnership with Indonesia.
It marks the transition from Australia’s successful rehabilitation work in Aceh to an ongoing commitment to the province’s longer-term development.
Australia will build on the successful community engagement activities of Australia’s reconstruction program to improve governance—helping government improve its service delivery and building popular demand for transparency and accountability.
Below: Communities, and the organisations that represent them, will be supported to identify, formulate and communicate their needs to government.
Photo: AusAID
Improving Indonesia’s infrastructure Indonesia’s infrastructure needs are growing alongside population pressures and decades of under investment in the sector.
For many Indonesians, poor quality water, traffic congestion, inadequate sanitation services and power outages are a part of life.
The limited road network and its poor condition limits access to health facilities, schools and jobs, inhibits economic growth and inflates prices, particularly for food.
The state of Indonesia’s infrastructure affects the country’s economic growth.
Investors are deterred by travel delays and difficulties transporting goods.
This affects the employment and earning prospects of poor people.
The Australian Government is working with Indonesia to improve its urgent infrastructure needs.
Australia’s assistance Infrastructure is necessary for long-term sustainable development.
Australia has been Indonesia’s development partner for more than 50 years.
In 2011, we are supporting infrastructure in 30 of Indonesia’s 33 provinces, with a current commitment of more than A$450 million.
Australia’s aid goes towards physical infrastructure investment as well as assistance with policy and institutional reform.
We work with Indonesia’s ministries of public works, finance and transport to improve the quality, planning and construction of Indonesia’s infrastructure.
What we have achieved Eastern Indonesia National Roads Improvement Program Australia is working with Indonesia to upgrade key sections of the national road network.
Twenty projects, building both roads and bridges, are being funded in nine provinces across eastern Indonesia.
By improving road planning, preparation and construction, the project will provide a model for the Indonesian Government’s future investments, extend the lifespan of roads, improve access to markets, increase productivity and stimulate economic growth.
Indonesia Infrastructure Initiative Australia is working with the central government and many local governments to improve access to essential infrastructure, including water supply, sanitation, road, rail and sea transport.
In close partnership with the Indonesian Government, Australia is helping develop national road and rail master plans to guide future investment in these sectors.
Australia is also developing regulation and investment plans to expand sanitation to eight major cities.
Water and sanitation Australia works with Indonesia’s local governments to improve urban water and sanitation infrastructure.
By providing grants, this program will provide better access to clean piped water for approximately 380,000 people in over 70,000 poor urban households.
Our assistance is also helping local governments invest in household sewerage connections and sanitation planning.
Poor communities in rural areas are also being supported with better access to water and sanitation facilities.
The program encourages communities to plan, finance, manage and maintain their own water supply and sanitation systems and improve hygiene.
Up to 4,000 villages across Indonesia will benefit from this assistance.
We are also working with Indonesia to improve policy, planning and investment opportunities across the water and sanitation sector.
For more information about AusAID’s infrastructure please visit www.ausaid.gov.au/country/indonesia/infrastructure.cfm
Introduction As 2006 draws to a close, the Indonesia Update – Year in Review looks at the progress through the year of the Australian aid program in Indonesia.
At the end of 2006, AusAID is on track to spend A$340 million* across the Australia Indonesia Program in the 2006-07 financial year.
The past 12 months have been largely characterised by Australia’s ongoing work to help Indonesia recover from the Boxing Day 2004 tsunami, which exacted a heavy toll on Indonesia, most harshly in Aceh Province.
Australia’s assistance to Indonesia has helped forge even closer ties between the two countries, which have been reinforced by the ready support offered by Australia after the Yogyakarta earthquake in May, and contributions to help those affected by this year’s Mt Merapi eruption and southern Java tsunami.
Throughout the year Australia has continued a major program of reconstruction and capacity building in Aceh, which will continue through 2007.
But responding to disasters and helping rebuild communities is only part of Australia’s aid commitment to Indonesia, and this year’s programs reflected the ongoing partnership between the two countries that aims to build a safe and peaceful Indonesia.
The diverse programs undertaken by AusAID in partnership with the Government of Indonesia this year demonstrated the strength of this relationship – it was also reflected in the high number of Indonesian staff who help the programs achieve their goals.
In June 2006 Australia and Indonesia signed an agreement enabling AusAID to provide funds for aid-related activities.
Under the Partnership Loan Agreement, AusAID is now able to distribute loan funds to enable projects under the Australia Indonesia Partnership for Reconstruction and Development.
Efforts to strengthen Indonesia’s economic governance and public sector management capabilities have gathered steam under the $50 million, five-year Government Partnerships Fund.
Already 12 Australian agencies are engaged with their Indonesian counterparts, including the Department of Prime Minister and Cabinet, Treasury, the Commonwealth Ombudsman and the Reserve Bank.
AusAID signed agreements during the year with Indonesia’s two largest non-government organisations – Muhammadiyah and Nahdlatul Ulama (NU) – to work together on disaster preparedness.
Close to $2 million will be used to increase disaster awareness among students and teachers at schools run by the organisations, and to strengthen cooperation between community and local authorities on disaster management.
AusAID has also begun working with UNICEF and other bilateral agencies to monitor the results of maternal and child health programs, with a focus on the provinces of Papua and Nusa Tenggara Timur.
A major challenge of 2007 will be helping Indonesia expand and strengthen its strategies to cope with pandemics and infectious diseases.
While Indonesia overtook other countries in 2006 with the highest number of deaths from avian influenza, and is taking concrete measures to limit further infections.
the country is also working to stem the spread of HIV/ AIDS.
Australia will remain at the forefront to help Indonesia with these challenges.
In November Australia committed more funds to Indonesia to help fight the spread of avian influenza, contributing an additional $18.5 million, bringing total funding since 2004 to $34 million.
In 2007 AusAID will continue to work toward the goals expressed in the 2006 aid White Paper, Australian Aid: Promoting Growth and Stability, which focus on accelerating economic growth, fostering functioning and effective states, investing in people and promoting regional stability and cooperation.
The strong partnership between Australia and Indonesia brings a broad range of contributors into the delivery of the aid program – from government and the private sector, to NGOs and academia – and it will continue to grow through 2007 and into the future.
Health Overview In 2006 Indonesia faced significant challenges in dealing with not only the spread of avian influenza, but also the deepening task of trying to halt the spread of HIV/AIDS.
AusAID has assisted with support for avian influenza education, research and treatment programs as well as helping improve health infrastructure in Aceh, where tsunami reconstruction efforts continued throughout the year.
In helping Indonesia build HIV/AIDS prevention strategies, AusAID has been working with the Indonesia National Parliament to help with narcotics law reform, encouraging a 400 per cent increase in the number of injecting drug users reached by needle and syringe programs.
As 2006 draws to a close, Australia remains committed to helping lower Indonesia’s maternal mortality rate, estimated at 307 per 100,000 live births – one of the highest in Southeast Asia.
Two of the agency’s main maternal and child health projects in Eastern Indonesia concluded this year, but AusAID has renewed funding for UNICEF to implement a Women’s and Child Health Program in Papua, and commenced preparations for a new four-year program of assistance to improve maternal and neonatal health, to begin in July 2007 in Nusa Tenggara Timur province.
The program will be implemented in partnership with other donors and will work through local government systems with complementary assistance at the national level.
AusAID has also begun collaborating with UNICEF and other bilateral agencies to monitor the results of maternal and child health programs.
With a focus on development learning, this monitoring activity seeks to improve cooperation between the programs, understanding of the causes of maternal and child deaths in Indonesia and, ultimately, the effectiveness of all donor interventions to prevent them.
In 2007 AusAID will continue to build on the priorities raised in the White Paper on Australian aid to improve health facilities, services and access in Indonesia 
Helping fight avian influenza on the ground in Indonesia While a number of countries have struggled to come to terms with the threat of avian influenza, Indonesia has been the worst hit, reporting 74 cases of the disease and 57 deaths – 45 this year.
At the same time, many provinces are grappling with ongoing outbreaks of the disease in backyard poultry flocks, threatening the livelihoods of some of the country’s poorest people.
The costs of avian influenza in Indonesia are two-fold.
In the first instance, farmers have been forced to absorb the cost of the estimated 60 million birds that have either died or been culled, as well as managing the disease with vaccines and adjusting farming systems.
The poultry deaths not only affect farmers’ incomes – they also diminish an important source of food for rural communities.
In the second instance, continued widespread infections in poultry pose an important ongoing risk for humans, and the related risk of a pandemic.
Following an Indonesian Government allocation of US$57 million ($73.2 million) in 2006 to deal with the disease threat, Australia responded with bilateral support of $34 million to help Indonesia purchase 50,000 courses of the antiviral drug Tamiflu, strengthen animal quarantine systems, raise community awareness and engagement through NGOlinked programs in South Sulawesi and Papua, and create links with universities and institutions in Australia to provide epidemiology and laboratory expertise.
Australia has also provided disease management specialists and supported the country’s ministries of Health and Agriculture in strengthening their surveillance and response activities.
Expanding the HIV /AI DS program The expansion of the $37 million AusAID-funded Indonesia HIV/AIDS Prevention and Care Project, Phase II (IHPCP) has been a key health initiative in 2006.
It is helping fund HIV projects such as improving blood safety in hospitals, introducing comprehensive HIV services in prisons, initiating programs by faith-based organisations in Papua to reduce the alcohol abuse associated with risky sexual behaviour, and training for police officers in injecting drug use harm reduction strategies.
The program had a number of significant wins in 2006, including a 400 per cent increase in the number of injecting drug users reached by needle and syringe programs from 8,000 people to almost 30,000.
A major media campaign in Papua involving the provincial football team – current national champions – helped raise awareness of HIV and sexual health.
AusAID has also worked with the National Parliament on narcotics law reform, and with local governments to develop HIV/AIDS work plans and district regulations aimed at harm reduction.
Mid-2006 AusAID engaged a new Indonesia HIV/AIDS Coordinator to provide technical advice on HIV assistance in Indonesia, while strengthening AusAID’s partnerships with Indonesian agencies and other stakeholders involved in the HIV/AIDS response.
Ahead of the program’s conclusion in August 2007, an AusAID planning team has met key stakeholders and conducted field visits to existing projects.
The mission’s findings are under review, and further design work will closely align with the development of the Indonesian National Action Plan on HIV/AIDS.
Maternal and child health in Indo nesia Indonesia’s maternal mortality rate remains one of the highest in Southeast Asia, particularly in Eastern Indonesia, where an estimated 554 in 100,000 women die during childbirth in Nusa Tenggara Timur (NTT), and over 1000 per 100,000 in Papua.
This compares to 6 per 100,000 in Australia.
In 2006, AusAID’s two main maternal and child health projects in Eastern Indonesia came to a close – the Women’s Health and Family Welfare project in NTT and Nusa Tenggara Barat and the Improving Maternal Health in Eastern Indonesia project, implemented by UNICEF in NTT and Papua.
The two projects contributed to increases in supervised deliveries and antenatal/postnatal check-ups, improvements in community awareness, the development of a gender manual for health workers, and the piloting of a promising health initiative for adolescent girls.
AusAID has renewed funding for an initial three years to implement the Women’s and Child Health Project in Papua, with a focus on adopting an integrated approach addressing access to, and affordability of, quality health services for the poor, and the health needs of women of reproductive age, newborns, infants, and children under five.
A new four-year program, to begin in July 2007 in the province of NTT.
Through this program, AusAID will assist the Indonesian government at national and regional levels to activate its Making Pregnancy Safer strategy, helping reduce maternal and neonatal mortality rates and improving the lives of many Indonesians.
New health facilities for Bali The completion of the Australia Bali Memorial Eye Clinic was an important project in 2006, and followed on from a commitment made after the 2002 Bali bombings.
The clinic is a stand-alone facility with the capacity to conduct three operations simultaneously, and is the final component of Australia’s Bali Memorial.
It will have comprehensive clinical areas, a seven-bed ward, an ophthalmology training facility, a large lecture theatre and several rooms utilised by the Provincial Health Department.
Australia is providing high levels of infrastructure, equipment, technical support and training to ensure the clinic is a first class medical facility and an outstanding memorial to the victims of the 2002 bombing.
When completed it will be handed over to the Balinese Government and will form part of Indera Hospital.
Construction began in February 2006 and, after equipment installation and staff training, the clinic is scheduled to open in July 2007.
The facility has the potential to make a major contribution to reducing blindness in Bali, and to become a regional centre of training excellence.
Similarly, the 15-bed Burns Unit at Bali’s Sanglah Hospital fulfils a commitment made under the Bali Memorial Package.
The Burns Unit is part of a new intensive care centre also comprising a post-operative 14-bed Intensive Care Unit, a six-bed Intensive Coronary Care Unit and a dedicated Operating Theatre.
The new centre is open to all patients, with a fee structure based on ability to pay.
Australia is also providing extensive training to the centre’s staff, and quality improvement of systems through a program with Australian Volunteers International.
Governance Overview 2006 has been an eventful year for the Governance Program, with 12 Australian Government departments working through the Government Partnerships Fund to help improve Indonesia’s economic governance and public sector management capabilities.
This has brought over 290 Australian and Indonesian officials into contact through secondments, internships, seminars and workshops.
Australian participants have included the Department of Prime Minister and Cabinet, Treasury, the Reserve Bank and the Commonwealth Ombudsman’s office.
These exchanges promote “hands-on” skills training in technically-demanding areas, new concepts, best practice in management and carrying out services.
The program has also delivered a large and diverse range of training in 2006, principally to middle management level staff in an equally diverse set of agencies, mostly at district and provincial levels of government.
In many instances the Indonesia Australia Specialised Training Project has directly contributed to other efforts in assisting the Indonesian government with its reforms, with over 100,000 participant training days offered to date, in around 350 different courses.
For example, the project offered a Train the Trainer course to 19 participants from the Directorate General of Tax office, focusing on codes of conduct, improved service delivery and law enforcement.
These 19 delivered training to a further 800 tax employees from all over Indonesia, supporting the application of new frameworks within the vast Indonesian tax administration.
The Legal Development Facility has four lead advisers who provide ongoing advice and activity coordination in human rights, access to justice, trans-national crime and anti-corruption.
The Lead Adviser for Judicial Reform has been assisting the Supreme Court with managing its 17,000-case backlog and helping the Religious Courts improve their services, especially for women attempting to settle divorce and property disputes.
In April the Facility launched the Legal Aid Handbook – a comprehensive guide to legal issues in Indonesia.
The book, launched by the Attorney-General and the Minister for Law and Human Rights, has been well received as a useful resource: the Chief Justice has requested copies for every judge in Indonesia.
Elections: changing the culture of politics In 2006, Australia and the Asia Foundation provided funding for 45,000 volunteers in the People’s Voter Education Network.
Indonesia is in the midst of a wide-ranging reform agenda of democratisation and decentralisation.
After a successfully run campaign monitoring the 2005 elections, the network is consolidating its role as the leading national civil organisation on strengthening democratic processes in Indonesia.
The network has been actively working to help change the culture of local politics to one of accountability towards the public, by informing and educating voters about candidate platforms, and by leading debate on emerging issues on the Indonesian electoral process.
The network directly represents some 70 million members.
In 2007 a number of pilot projects will be established to extend the network’s monitoring and reporting capacity on all stages of the electoral process.
It will continue to be a major advocate for citizens in Indonesia’s electoral system.
TAMF – good economic management Australia is playing a crucial, carefully targeted role in helping Indonesia enhance economic growth and reduce poverty through the Technical Assistance Management Facility (TAMF).
Australian assistance in the area of Indonesia’s economic management has enabled the Government to provide a firmer base for encouraging private investment, tightening government procurement procedures in the fight against corruption, and prioritising major new infrastructure projects.
This included the development of a risk management plan to support the expansion of coal-powered generating capacity to 10,000 Megawatts.
Australia also advised on the auction of 3G spectrum bands, leading to a US-half billion dollar non-tax revenue gain.
Support in debt management has resulted in effectiveness improvements that are now recognised as a model for other heavily indebted countries.
This has also been acknowledged by the market, with a Moody’s debt rating upgrade in May suggesting investors’ risk perceptions are improving.
TAMF support has had a significant impact in increasing Government revenues and building fairer and more efficient tax management, with tax revenues at the national and Jakarta provincial levels increasing by 45 and 35 per cent respectively during 2005.
A comprehensive evaluation of the Facility in the second quarter of 2006 suggested the Indonesian Government had demonstrated high levels of trust and confidence in TAMF’s motives and quality of service delivery.
Other donors, including the World Bank and the IMF, spoke highly of TAMF’s contribution, noting the Facility’s responsiveness and the high quality of its personnel.
ACCESS – empowering women and the poor The Australian Community Development and Civil Society Strengthening Scheme (ACCESS) is working in some of Indonesia’s poorest districts to ensure the voices of women and the poor are heard.
Indonesia is a country with substantial resources and local capacities, but the voices of women and the poor are often stifled
This situation is improved through the training of local facilitators to help identify the opportunities and resources needed to plan for the future and build confidence.
To date, ACCESS has involved some 63,000 people and provided 350 small grants.
Local community groups are now playing a larger role in local affairs, demanding good government and participating in and advocating on a whole range of community services and issues.
ACCESS on the ground Ibu Tija’s husband died 14 years ago and she was left to raise her three children alone, but now the 52-year-old grandmother says life is looking up.
After receiving two goats through the ACCESS-funded program, Ibu Tija joined the local animal husbandry group and now regularly attends community meetings.
O ne of the unforseen benefits for Ibu Tija is being able to voice her own opinions at the village and group meetings.
Ibu Tija’s increased confidence has encouraged her to branch out into seaweed farming with one of her sons, using capital earned from the goat farming.
She is also considering setting up a fishing group modelled on the animal husbandry group formed as part of the ACCESS funded program, and sees a brighter future for herself and her family.
Education Overview Australia’s efforts to help Indonesia raise education standards across the country took great steps forward in 2006.
The Basic Education Program is working to provide more than 330,000 new places for students in Years 7 to 9 by building and expanding 2000 schools across the country, with a particular focus on eastern Indonesia.
In Aceh, communities affected by the tsunami and 30 years of conflict are receiving help to rebuild their school networks.
Under the Education Rehabilitation Aceh (ERA) program, schools are being rebuilt and restored, especially in the Islamic education subsector where many of the poorest children are educated.
In addition, the Communities and Education Program – Aceh (CEPA) is working in conflict-affected parts of Aceh to help rebuild schools and improve education quality.
Both these programs are featured in the Aceh section of this Update.
New schoo ls will raise education levels In 2006 AusAID has commenced a huge program to assist the Indonesian Government’s introduction of a new, compulsory standard of nine years’ education for all students.
AusAID’s Basic Education Program is working to overcome a lack of access to secondary schools, focusing on providing more than 330,000 new places for Junior Secondary students from Years 7 to 9, by building and expanding 2000 schools.
Construction began in 13 provinces this year, predominantly in eastern Indonesia, and will begin in five more in early 2007.
The first phase sees around 400 schools ready at the beginning of the Indonesian school year, with construction of the others continuing over the next two to three years.
AusAID is working in partnership with the Indonesian Government to provide both general secular schools and Islamic schools.
An ongoing part of the program is Australia’s substantial work toward improving educational quality and management.
The schools will be built or extended in poor and remote areas where there are either no schools, or the existing schools are overcrowded.
The construction work will be done by local people – not commercial companies – through the Government of Indonesia’s established community construction systems, with AusAID funding technical supervision to ensure the schools meet high building standards.
While at least 330,000 new formal students will benefit from the facilities, the program will encourage their use for non-formal education as well, opening up learning opportunities to many more people in remote and previously under-serviced areas.
Investing in people through learning AusAID continued during 2006 to help strengthen Indonesian human resource development through education scholarships.
A new Australian Scholarships initiative was launched in April to build partnerships, and increase mutual understanding, knowledge and innovation in the Asia Pacific region.
It brings under one umbrella three Commonwealth Government scholarship programs: Australian Development Scholarships (ADS), Endeavour Awards and a new Australian Leadership Awards (ALA) program which is managed by AusAID.
More than 550 new postgraduate scholarships were offered in 2006, including 23 ALAs.
The ALA program is regionally competitive, and focuses on developing leaders who can influence social and economic policy reform and development outcomes.
300 Australian Development Scholarships were offered to Indonesians in both the private and public sectors.
The program is currently operating in 19 tertiary institutions in Australia, but will be expanded in 2007 to include all institutions, significantly increasing study choices.
The Australian Partnership Scholarships (APS) program, formally established in April 2005 in response to the Indian Ocean disaster, placed 235 recipients in Australian universities.
Applicants were sought from key organisations in Indonesia, and a total of 600 recipients are expected to be placed in Australian universities by the first semester of 2008.
Livelihoods Overview A key element of helping people regain their livelihoods is helping them re-establish their potential for economic growth.
Through the Australia Indonesia Partnership, Australia is helping to improve livelihoods across Indonesia through increasing opportunities and local technical expertise.
Since January, AusAID has been working with the International Finance Corporation (IFC) on a Private Enterprise Partnership to provide technical assistance to encourage private sector development in Aceh and Nias.
The $7 million program is strengthening the business climate in Aceh and Nias with a focus on small to medium business enterprises and improving Aceh’s investment potential.
It is also improving access to finance for local business by strengthening the microfinancial institutions and establishing a small online credit bureau.
AusAID has been providing practical assistance to raise food security in tsunami and conflict-affected areas in Aceh.
A grant of $10 million to the World Food Programme in December 2005 provided 1,500 tonnes of locally-purchased biscuits, 7,000 tonnes of rice and 930 tonnes of noodles that were distributed across Aceh, and covered both transport and storage costs for these supplies.
Also in Aceh, Australia has been working this year to restore the annual cropping system in western coastal areas heavily damaged by the tsunami, including helping agricultural services to provide train-the-trainer activities and improving soil management practices through hands-on demonstrations and farmer-to-farmer visits.
Rehabilitating aquaculture systems Before the tsunami, aquaculture was an important source of income, employment and livelihood for many Acehnese communities.
The industry employed more than 94,000 people, had an annual production value of approximately $75 million per annum, and was dominated by small, low-input farms producing shrimp and milkfish.
Tiger shrimp produced for export markets accounted for two thirds of production, and aquaculture played an important role in reducing pressure on marine fishery stocks.
More than half the ponds in Aceh – around 20,000 hectares – were damaged in the tsunami, with around 9,000 hectares totally destroyed.
More than 80 per cent of shrimp hatcheries were also destroyed, and at least 40,000 people lost their livelihoods
Australia committed $5 million funding to help improve livelihoods in Aceh through the Australian Centre for International Agriculture Research, with $4 million going toward the development of the Aceh Aquaculture Industry to rebuild the fish hatcheries and to assist the Regional Brackishwater Aquaculture Development Centre to develop good management practices for local farmers.
Forging links in agribusiness The Smallholder Agribusiness Development Initiative (SADI) is designed to address long-standing issues and constraints relating to agricultural production and rural poverty in eastern Indonesia.
The SADI’s overall goal is to achieve a sustained increase in rural growth and household incomes through productivity gains, better access to markets, and on-farm and off-farm value-added activities.
Its main task is to forge stronger links between rural smallholders and the wider Indonesian and global economy that can be sustained long-term by commercial incentives, without ongoing support.
The initiative has entered a six-month inception phase, after which the $38 million initial phase of the program (to late 2009) will be implemented in partnership with the World Bank’s Kecamatan (sub-district) Development Program, the International Finance Corporation and the Australian Centre for International Agricultural Research.
The SADI management office in Makassar, South Sulawesi, has commenced operation, and is scheduled to be formally opened in January, and the successful implementation of Phase I will provide a foundation for the program to grow from 2010 onwards.
Disaster response Overview Responding to natural disasters and their ensuing effects on communities is part of the core business of Australia’s aid program.
It is also one of the hardest tasks required of AusAID, as natural disasters can be neither predicted nor prevented.
In 2006 Indonesia, still working to overcome the devastation caused by the December 2004 earthquake and tsunami, was struck by a number of natural disasters that claimed lives and threatened livelihoods.
In early January three days of torrential rain caused flash flooding and landslides in several districts in East Java, killing at least 80 people and forcing close to 10,000 people to flee their homes.
AusAID provided $200,000, which was used to hire helicopters to evacuate the injured, drop emergency aid into inaccessible areas and provide aerial assessments of the damage.
Australia also distributed emergency goods including medicines, food, tents and hygiene kits to people whose homes were destroyed.
In May a massive earthquake measuring 6.3 on the Richter scale hit the Yogyakarta and Central Java provinces, killing as many as 6,000 people and leaving close to a million homeless.
Australia’s total $37.5 million assistance package included $7.5 million for emergency medical treatment and supplies, water, sanitation and shelter assistance, and was followed by $30 million for longer-term assistance.
The quake came on the heels of the evacuation just two weeks before of nearly 20,000 people from villages surrounding Mount Merapi in Central Java, not far from Yogyakarta.
Tremors had begun around the volcano in late April, and by the first week of May lava had begun flowing, endangering surrounding communities.
Australia contributed an initial $100,000 to the Indonesian Red Cross to assist with the evacuations, but after the initial displacement of residents the volcano’s activity decreased, and locals were allowed to return to their homes.
Australia also assisted when an earthquake south of Jakarta triggered a tsunami in July that hit southern Java, killing over 570 people and displacing more than 50,000.
While there was extensive damage to buildings within the 500-metre impact zone, infrastructure and services not immediately on the coast were able to continue functioning, including electricity and water supply.
Australia contributed $250,000 for emergency relief and short- to medium-term assistance.
In 2007 AusAID will continue to monitor the needs of people living in disaster-affected communities, and will maintain its dialogue with the Indonesian Government on how to best support these communities into the future.
The Yogyakarta earthquake The earthquake the struck Yogyakarta on May 27 caused major devastation, and the Australian Government responded immediately by sending an emergency response team of up to 85 disaster experts to the affected area.
Australia’s immediate $7.5million humanitarian response included urgent medical, hospital and relief supplies, medical and surgical teams, two engineering and essential services teams and government aid staff, logisticians, water and sanitation experts, to assist in coordination and to advise on evolving needs.
Australia also provided funding for the UN, Indonesian Red Cross and local and Australian NGOs active in the region.
AusAID contributed an infrastructure expert to the BAPPENAS-led Loss and Damage Assessment.
AusAID staff and contractors worked from a Yogyakarta field office, and other staff worked on critical infrastructure and essential services response teams which conducted initial needs assessments to help determine immediate to longer-term reconstruction needs.
In June a $30 million grant was approved for immediate demolition, repair and construction works and longer-term construction, with a program design mission undertaken soon after.
A Yogyakarta – Central Java Community Assistance Program was subsequently established, and this two-year program is providing short to medium term assistance by helping affected families and communities return as quickly as possible to normality .
In November the first Six Monthly Rolling Work Plan was endorsed.
In the new year three main program activities will be pursued: a health clinic upgrade program; a rehabilitation grants program; and a school readiness program.
Infrastructure Overview The Infrastructure program has focused throughout the year on practical programs that have provided tangible outcomes.
EINRIP has been working with the Indonesian Directorate General of Highways to identify priority projects, and the Smallholder Agribusiness Development Initiative (SADI) has moved into the inception phase.
The ANTARA regional development program opened its Kupang office in March, and has completed its mobilisation phase, moving on to implement its poverty reduction initiatives in the Nusa Tenggara Timur province.
Its major task is assisting the Indonesian Government, stakeholder organisations and people of the province to tackle the constraints that make it one of the poorest provinces in Indonesia.
Practical initiatives include assisting with medical supply management and the improvement of surgical specialist services, as well as projects to raise access and quality in primary school education and assisting the tourism industry through the West- Manggarai Swiss Australia Tourism Assistance (WISATA) initiative.
ANTARA has a long-term time-frame of 10 to 15 years and a mandate to develop a range of innovative responses to the constraints of poverty.
Th e Australian loans program building roads in eastern Indo nesia A major loan-funded road improvement project is supporting regional economic and social development, particularly in Eastern Indonesia, by improving the condition of the national road network.
The five-year $300 million Eastern Indonesia Road Improvement Project (EINRIP) is financing improvements and upgrades of deteriorated roads and bridges throughout the east of Indonesia.
Additional grant funding of $28 million is being provided to support project preparation, to strengthen the capacity of the Indonesian Ministry of Public Works to manage the national road network and to tackle ongoing issues such as road maintenance.
A project preparation team was engaged in March 2006 to work closely with the Directorate General of Highways in the Ministry for Public Works to identify priority projects, undertake detailed surveys and commence final engineering design.
Social and environmental safeguards are being prepared using experience gained through similar projects, and are an integral part of EINRIP evaluation and planning.
Aceh Overview AusAID’s projects in Aceh have made enormous gains in 2006.
Tsunami repair work has surged ahead at Ulee Lheue port, and Australian assistance has helped rebuild schools and new facilities, 
The LOGICA program is empowering locals to help lead the rehabilitation of their communities, and health infrastructure has been vastly improved and repaired.
Local Governance and Infrastructure for Co mmunities in Aceh (LOGICA ) The tsunami was an unprecedented disaster that left governments struggling with limited personnel and resources.
Villages were in disarray, and in the midst of this communities had to rally together to plan for the future, and to play active roles in leading and monitoring village reconstruction and recovery.
LOGICA was initiated in mid-2005 with three key goals: re-establishing land ownership through community land mapping, strengthening sub-district government and re-establishing village-level communities through community-led planning, skills development and community infrastructure grants.
The strength of LOGICA’s approach lies in its focus on people and action.
Village facilitators live alongside the communities they support, and they have trained over 1,300 village leaders, more than half of whom are women, to support the village reconstruction program.
This network of facilitators leads the village planning process and has established committees in 35 villages to manage community infrastructure grants.
LOGICA community land mappers have continued their work with villagers, and 339 village maps covering around 70,000 land parcels will be completed by the end of 2006.
These have been used by over 50 organisations for village planning, the reconstruction of housing, and by the National Land Agency for the issuing of land certificates.
The land maps are used by LOGICA’s village spatial planning team, who work with facilitators and village planning committees to produce spatial plans to help guide reconstruction work.
By the end of 2006, LOGICA will have produced 82 village spatial plans with another 138 planned for next year.
By mid-2007, 200 villages along the north and west coasts of Aceh will have received up to $4.5 million worth of grants to construct priority village infrastructure and to repair bridges, roads and drainage.
As well as physical progress on reconstruction, the goal in 2007 is to help communities and local government service providers sustain LOGICA’s legacy for Aceh’s long-term benefit.
Health rehabilitation in Aceh The Health Assistance Rehabilitation in Aceh Program (HARAP) has helped Aceh’s health authorities reconstruct tsunami-damaged infrastructure, and develop a more effective health delivery system that will strengthen health care service in Aceh for the long term.
The Emergency Department and Dental Clinic at Aceh’s major hospital, Zainoel Abidin, were refurbished in 2005, and through 2006 HARAP supported the training of 40 emergency doctors and 25 emergency nurses, and provided clinical training to 60 new nurses at the hospital.
As a consequence, hospital services are now in greater demand, waiting times are reduced, and the survival rate of gravely ill patients has improved.
The Dental Clinic has also benefited from Australian assistance in reconstruction and training.
It now meets international standards, and the Head Dentist, trained in Australia, has become Aceh’s first forensic dentist.
HARAP has worked alongside Aceh’s Provincial Health Office to help it re-establish services after the office suffered severe staffing and resource losses in the tsunami.
In 2006, the provincial and local health offices throughout Aceh developed Indonesia’s first provincial five-year strategic health plan (RENSTRA).
With Australia’s support, the Office is also developing health regulations as mandated by the new Aceh law of self-governance and has trained 45 health administrators.
In addition to the loss of trained midwives in the tsunami, Aceh is now experiencing an increased birth rate.
Australian aid is helping the midwifery academy in Banda Aceh to meet these challenges.
Assistance has included the refurbishment and re-equipping of the building and facilities, and financial assistance to students.
More than 3,300 student nurses and midwives experiencing financial hardship after the tsunami also received assistance with their 2005-2006 academic year tuition fees.
In 2007 HARAP will focus on continuing to strengthen Aceh’s health services through improved infrastructure and training.
Ulee Lheue Port in Banda Aceh In 2006, extensive work was done at Banda Aceh’s Ulee Lheue port, which was completely destroyed in the tsunami and separated from the mainland.
The newly-built ferry terminal was destroyed, and the Roll On-Roll Off ferry ramp had lost its lifting mechanism, fendering system and ramp decking.
The floating power station, moored at the ferry jetty, had been forced inland, and the floating jetty used by fast ferries had been washed away to nearby Pulau Aceh island, and grounded on a reef.
Emergency repairs began in June 2005, with the building of new temporary ferry terminal and repairs to the ferry ramp and lifting mechanism.
In December 2005 the port’s ferry operations were reopened with a temporary terminal building, allowing a car ferry to re-open.
Continuing reconstruction to the port in 2006 has seen major repairs to a 1.4 km breakwater, the construction of a new jetty, and a dedicated barge landing for the transportation of construction materials required for tsunami rehabilitation work on nearby islands.
As well as the transportation benefits this work delivered, the experience has benefited many local Acehnese people, building their skills and confidence.
Afrida Nursanti, an Acehnese port engineer, said a tsunami could never take away the knowledge locals had gained while being involved in the rehabilitation engineering works taking place at the port.
Housing Assistance More than 180,000 houses were destroyed in the tsunami, leaving 500,000 people without homes.
In 2006 Australia helped build over 1250 temporary shelters to house more than 8,000 people, and restored water and sanitation services.
Australia also provided assistance to the Government of Indonesia to help it overcome the logistical challenges of reconstruction work in a devastated area.
The Housing Assistance Program has also helped NGOs and other donors to access sustainably harvested timber, in order to protect Aceh’s forest during the reconstruction.
Safeguarding quality standards has been an important element of housing assistance, and Australia has provided technical support and training for local people to monitor the reconstruction taking place in their areas.
Helping communities rebuild their schoo l networks The tsunami killed nearly 2,500 teachers and damaged or destroyed more than 2,100 schools (including over 1,500 primary schools and nearly 300 junior secondary schools).
Approximately 150,000 students lost access to education facilities.
Australia has assisted by delivering 10,000 textbooks and nearly 900 sets of school desks and chairs to Aceh’s school communities, and by training teachers and managers in 32 schools.
The Education Rehabilitation Aceh (ERA) program focuses on the Islamic education subsector where many of the poorest children are educated, and where few other donors are operating.
Under the program five education facilities have been reconstructed, including two Islamic schools in Banda Aceh that were badly damaged in the disaster.
Australia provided $870,000 to restore the flooded Lampisang State Islamic Primary School in Aceh Besar and the completely destroyed Merduati State Islamic Primary School in Banda Aceh.
The ERA program is continuing to lead reconstruction and rehabilitation works in 14 more education facilities, has implemented a range of teacher training activities, is revitalising the school cluster system and is working with school communities and teachers at 32 schools in the post-conflict area of Pidie.
Additionally, five education facilities have been built since mid-2005, including a teacher training centre at Syiah Kuala University, and another 14 are underway.
Post-conflict education rehabilitation The Communities and Education Program – Aceh (CEPA) aims to strengthen communities through rehabilitating schools and improving education quality in conflict-affected areas of Aceh.
An estimated 600 schools were burned down during the years of conflict in Aceh, and while some have been rebuilt, the quality of education has deteriorated and few teachers were willing to work in such areas.
The program commenced in January with a pilot and has moved to the designimplementation phase, commencing in seven schools in the Bireuen district, where much of the conflict was centred.
The project encourages communities to take leadership and ownership in the rebuilding and development of their schools, and works closely with education offices, education supervisors, and school heads and leaders.
New Country Strategy A new Country Strategy is being developed to guide Australia’s development priorities in Indonesia from 2007-2011.
As outlined in the Australian Aid: Promoting Growth and Stability White Paper, the new strategy will give greater prominence to performance outcomes and provide a single framework for whole-of-government development efforts.
In line with the White Paper’s strong focus on partnerships, the Indonesia Country Strategy will look to maximise engagement between the Indonesian and Australian governments and other donors to promote reform and ensure effectiveness.
The strategy will be shaped to reflect key questions about Australia’s national interests in relation to Indonesia, and the role of overseas development assistance in contributing to these interests.
It will look at how Australia can ensure a focused, well-targeted and flexible program, while remaining realistic about the program’s objectives and providing performance frameworks that are capable of capturing achievements across all agencies involved in the delivery of overseas development assistance-eligible activities in Indonesia.
The Strategy is to be completed mid-2007.
In line with the White Paper’s strong focus on partnerships, the Indonesia Country Strategy will look to maximise engagement between the Indonesian and Australian governments and other donors to promote reform and ensure effectiveness.
Anti-corruption for development plan 2008–13 Background Indonesia and Australia both view corruption as a development issue.
Corruption damages public trust and accountability and distorts the allocation of public resources, reducing economic growth and increasing poverty.
Indonesia’s National Action Plan for the Eradication of Corruption 2004–2009 (RAN-PK) states: Corruption in Indonesia is a disturbing phenomenon that has spread and expanded to the executive, legislature and judiciary.
This has been one of the main factors that hampers Indonesia’s development.
Government failure in eradicating corruption also weakens the Government’s image in the eyes of its people, which is reflected in the form of public distrust, public disobedience of the law and an increase in the absolute poverty rate.
As Indonesia’s largest bilateral grant donor, Australia plays an important role in assisting Indonesia to reach its anti-corruption objectives.
While development assistance under the Australia Indonesia Partnership represents less than 0.5 per cent of overall Indonesian Government expenditure, properly targeted this assistance can have much broader benefits.
The Partnership views anti-corruption assistance as a means of improving the effectiveness of Indonesia’s overall development budget and, in particular, ensuring better development outcomes for the poor.
The Partnership believes that without tackling corruption in Indonesia, the Millennium Development Goals will be very difficult to achieve.
This Anti-Corruption for Development Plan (the ‘Plan’) reflects the desire of both governments to cooperate to combat corruption in Indonesia, with the ultimate aim of improving social and economic development.
This Plan sits underneath the Australia Indonesia Partnership Country Strategy 2008–2013.
Anti-corruption is a high-priority, cross-cutting issue that will be implemented and monitored across the Country Strategy.
Both the Australian and Indonesian governments have demonstrated strong commitment to combating corruption in international and domestic spheres, by ratifying multilateral agreements such as the United Nations (UN) Convention Against Corruption (UNCAC) and by implementing measures to prevent, detect and sanction domestic and transnational corruption crimes.
In 2008, the Indonesian Government highlighted the strong political will it has behind its anti-corruption effort by hosting the Second Conference of States Parties to the UN Convention Against Corruption.
While corruption in Indonesia remains a very serious problem, significant inroads have been made over the decade since the country began its transition to democratic rule.
The Corruption Eradication Commission (KPK) was established in 2003 and over the past 5 years has built a strong reputation and gained a high degree of public trust.
In 2004 President Susilo Bambang Yudhoyono came to power on a strong anti-corruption platform and quickly passed a presidential decree on corruption eradication, calling on all parts of the Executive to play a role.
In 2005, the RAN-PK was released by the National Development Planning Agency (BAPPENAS), setting out concrete action to be undertaken by the Government’s Executive to reduce and prevent corruption.
These efforts by Government have also been accompanied by a blossoming of civil society groups and the emergence of a vocal media.
The Indonesian Government’s opening address for the Second Session of the Conference of the States Parties to the UNCAC reads: I cannot emphasise enough that in Indonesia, corruption is public enemy number one.
We deplore it, we despise it and we do not tolerate it
When corruption is widespread, it diminishes the quality of life of an entire nation, especially those who are poor.
It breeds other crimes and erodes the moral fibre of society … It is a huge barrier to our drive towards the Millennium Development Goals.
Goal This Anti-Corruption Plan is a five-year joint action plan representing Australian support to Indonesia’s anti-corruption efforts by mainstreaming anti-corruption assistance across the aid program.
It is envisaged that this Plan will be the first step in a longer-term partnership between Australia and Indonesia with the goal of assisting to bring about a sustainable reduction in corrupt behaviour for the purpose of improving economic and social development in Indonesia.
Scope In line with its aim of supporting Indonesia’s efforts to reduce corruption, this Plan reinforces the three main pillars of the 2004–2009 RAN-PK: (i) prevention; (ii) enforcement; and (iii) monitoring and evaluation.
Implementation of the Plan will also be guided by Australia’s anti-corruption approach of: (i) building constituencies for anti corruption reform; (ii) reducing opportunities for corruption; and (iii) changing incentives for corrupt behaviour. 
The Plan is divided into four parts: Guiding principles; Key areas of assistance; Approaches for implementation; and Monitoring and evaluation.
Guiding principles The Australia Indonesia Partnership’s anti-corruption assistance will be guided by the following principles: 
Both governments will promote a dialogue between their respective ministries and agencies, with the aim of contributing to the policy debate underpinning the Indonesian Government’s decisions on key issues in anti-corruption.
For example, Australian Government departments and agencies will work together to harmonise their anticorruption assistance under the Australia Indonesia Partnership.
Australia will engage strongly with other donors and civil society and encourage coordination, cooperation and support for the Indonesian Government’s anti-corruption agenda.
Australia efforts will complement, not substitute for, the KPK’s strong leadership on donor coordination.
Assistance will remain flexible, allowing it to respond to changes in Indonesia’s anticorruption strategy.
In particular, the proposed revision of RAN-PK in line with the UNCAC, as well as the development of Indonesia’s next Medium-Term Development Plan and the prospect of new government policies after the 2009 general elections will necessitate a mid-term review and consequent amendments to this Plan.
Australia will seek to support these changes with sound analysis.
In support of decentralisation of basic service delivery, assistance at the local level will be increasingly emphasised in the program.
In line with the Australia Country Strategy 2008–2013, priority provinces will be Papua, West Papua, Nusa Tenggara Timur, Nusa Tenggara Barat and Aceh.
The focus of local-level assistance will be determined on a case-by-case basis, but targeted to complement existing donor and Government assistance thereby creating a cumulative effect of reduced corruption and improved governance as well as a model effect for other local governments.
Assistance will be provided in a manner that supports the implementation of regional and global initiatives of relevance to Indonesia such as the UNCAC, the Asian Development Bank /Organisation for Economic Co-operation and Development Anti-Corruption Initiative for Asia-Pacific, and the Asia-Pacific Economic Cooperation Anti-Corruption Taskforce.
Assistance will be long-term with a view to contributing to sustainable reforms that benefit the Indonesian development budget as a whole.
A crucial part of the Australia Indonesia Partnership’s motivation for focusing on anti-corruption is to increase the effectiveness of development assistance.
The Partnership Country Strategy signals Australia’s intention to move towards increased alignment with and use of Indonesian Government systems in the delivery of aid.
As part of this, assistance that strengthens Indonesia’s systems for administering development funding will be prioritised.
Encourage collaboration between donors and the Indonesian Government in conducting anti-corruption assessments, baseline studies and monitoring of progress and performance.
Corruption risks in development activities under the Australia Indonesia Partnership will be addressed in accordance with the following principles: Activities will promote public participation through disclosure of project information with the aim of improving activity governance and oversight.
Lessons learned from corruption risks encountered will be shared with the Indonesian Government and other donors to promote transparency and continued improvement in dealing with corruption on development activities.
Activities will also promote the principles of transparency and accountability among counterparts and beneficiaries of the activity.
As part of activity design, the Australian and Indonesian governments will agree on appropriate communications protocols in relation to instances of corruption.
The principle of early and open communication will apply in all cases.
Activities will continue to be designed and implemented to prevent, detect and act against fraud and corruption.
Where higher levels of risk exist, an activity-specific Anti-Corruption Action Plan (ACAP) will be developed jointly by Australian and Indonesian Government counterparts as part of activity design.
The ACAP will detail measures to reduce the risks of corruption on each activity, including through improved procurement, audit, project supervision and public engagement and oversight.
Wherever possible, risk-mitigation measures will aim to strengthen existing systems, rather than introducing parallel systems.
The Subsidiary Arrangement for each activity will set out the respective responsibilities of Australia and Indonesia in relation to complaints handling, monitoring, audit, application of sanctions and investigation and prosecution of allegations of corruption.
Key areas of assistance Pillar 1: Prevention Assistance under the prevention pillar will be the main focus for the Australia Indonesia Partnership over the life of this Plan.
Prevention assistance will be targeted substantially to the local level and will focus on the following key areas:
Enhancing accountability and transparency of public service delivery, by strengthening government processes, especially budgeting, financial management and procurement.
Strengthening oversight of government, including by anti-corruption and audit bodies, the ombudsman, Parliamentary Committees, communities and civil society.
Strengthening institutions of democracy, including the capacity and responsiveness of Parliament and the quality and integrity of electoral processes.
Contributing to public sector reform in select agencies, directorates or local-government offices where reform is already underway.
Pillar 2: Enforcement Assistance under the enforcement pillar will focus at the central level and will address the following key areas:
Improving investigation and prosecution of corruption crimes, as well as adjudication by the courts.
Strengthening enforcement institutions such as the KPK and Attorney General’s Office.
Improving recovery of assets and return of proceeds of corruption crimes to the Government of Indonesia budget.
Pillar 3: Monitoring and evaluation Key areas of focus under the monitoring and evaluation pillar are:
Supporting the capacity of the Government of Indonesia to assess performance against its anti-corruption goals with equal focus on administrative compliance and outcomes for end-users.
Supporting non-state actors to undertake analysis on key aspects of progress on anti-corruption in Indonesia.
Approaches for implementation The Plan’s successful implementation will require a concerted effort to ‘mainstream’ anti-corruption throughout Australia’s aid program for Indonesia.
This means holding an anti-corruption lens to all aspects of program management—from concept and design, through to implementation and monitoring and evaluation.
Implementation of this Plan will involve: Strategic planning—as the aid program aligns more with the Indonesian Government’s planning for development activities, both government’s will ensure that forward planning addresses the priority areas of assistance in this Plan.
Sector Plans under the Australia Indonesia Partnership Country Strategy 2008–2013 will also give effect to this Plan.
Analysis—support for new Sector Plans and designs for new initiatives will include an analysis of the nature and causes of corruption (by sector)
Performance assessment—anti-corruption objectives have been mainstreamed throughout the Performance Assessment Framework for the Country Strategy so that annual Country Strategy reporting assesses the effective implementation of this Plan.
These objectives will be translated to the operational level through sector and initiative performance frameworks and monitoring and evaluation plans.
Mitigating anti-corruption risks—where new approaches to aid delivery are being piloted or where an initiative involves higher than normal risks, an initiative-specific ACAP will be developed jointly by Australian and Indonesian Government counterparts as part of the design process (see ‘Guiding Principles’ for more detail).
Examples of Australia’s approach to anti-corruption in Indonesia Institutional strengthening in the Corruption Eradication Commission Australia’s work with the KPK has contributed to strengthened investigation capacity through training on culture and typologies of corruption, evidence handling and management, and introduction to surveillance, information handling and undercover work.
Australia also supported a Training Needs Analysis which the KPK has used as the basis for developing a two-year training program which Australia and other donors are now helping deliver.
Procurement strengthening In 2007 Australia worked with BAPPENAS to design a program to support the national procurement strengthening agenda, a key area of focus in Indonesia’s anti-corruption plans.
The main counterpart for this assistance is the newly established National Public Procurement Agency.
Local governance The Australian program ‘LOGICA’ was initiated as a post-tsunami governance rehabilitation program focused at the sub-district and village level in Aceh.
It has since built a program of strengthening service delivery and governance through activities that emphasise building ‘Active Communities and Responsive Government’.
Under LOGICA, Australia supports committed officials to establish one-stop-shops to deliver government services at the sub-district level.
Through the initiative, communities affected by the tsunami can now obtain information and services related to housing allocations, approval for welfare assistance, and registration of births, deaths and marriages cheaper, quicker and more transparently than ever before.
The system is so successful that sub-district governments throughout Aceh are using their own funds to replicate these reforms.
Basic education The Basic Education Program uses a community-based school construction approach for the construction of around 2000 schools across Indonesia.
This approach empowers communities in project and budget oversight and contributes to an increased demand for better governance in basic service delivery.
It is also considered the best way to ensure the quality of construction and reduce the risk of corruption.
Monitoring and evaluation of this plan In addition to efforts that support the Government of Indonesia’s capacity to assess its own performance in addressing corruption, there is also a need to evaluate the effectiveness of Australia’s contribution—both the targeted assistance and anti-corruption measures included in initiatives.
In doing so, it is important that lessons are captured and subsequently inform Indonesia’s anti-corruption reform agenda.
This Plan has a three-tiered approach to measuring performance under the anti-corruption plan, focusing on the macro-level, the country program level and on activity level safeguards.
The questions performance assessment will address are:
At the country level, is corruption in Indonesia increasing or decreasing?
How effective is the Australian development cooperation program’s contribution in supporting Indonesia to reduce corruption in accordance with the Australia Indonesia Partnership Anti-Corruption for Development Plan 2008–13?
How effectively is the Australian development cooperation program contributing to improved Australian and Indonesian systems to safeguard development funds from corruption?
Australia Indonesia Partnership for Justice (AIPJ)
Design Document
July 2010
Table of Contents
Acronyms, Abbreviations and Key Concepts
Law and justice sector
The Government of Indonesia’s National Long-Term Development Plan 2005-25 describes ‘legal development’ as including:
efforts to bring about the rule of law through developing a culture of law and an improved awareness of legal issues within the community; and
efforts to bring about fair and democratic civic life
The term ‘law and justice sector’ will be used throughout this design document as a catch-all term to refer to all actors engaged in the above activities
Within this sector, AIPJ’s primary focus will be on the judiciary, prosecutorial agencies and the national human rights institutions
‘Rule of law’
The rule of law is the principle whereby individuals, organisations and the state are regulated by law rather than arbitrary action
It underpins social and economic development, enabling people to plan and live their life as they choose
The Government of Indonesia (GoI) defines rule of law as involving the ‘supremacy of the law and the constitution; the constitutional separation of powers; enshrined human rights; a free and independent judiciary which guarantees that all citizens are treated equally before the law; and a guarantee of justice for all people in relation to the misuse of power.’
This document adopts the same definition of ‘rule of law’
‘Access to justice’
Access to justice underpins the rule of law, and is therefore an essential component of democracy
Indonesia’s National Access to Justice Strategy defines access to justice as the ‘means and ends by which the state guarantees the fulfilment of basic rights according to the Constitution of the Republic of Indonesia 1945 and international human rights principles, and guarantees access to every claim holder to know, understand, be aware of and make use of these rights through formal and non-formal institutions, supported by fair and responsive public complaint mechanisms, in order to obtain optimal outcomes and improve the quality of their life.’
This document adopts the same definition of ‘access to justice’
‘Legal services’ and ‘legal information’
The term ‘legal services’ will be used to refer to the broad range of services provided by law and justice sector institutions to justice-seekers and the community at large
These services include:
court-based dispute resolution;
legal advice and legal representation (including legal aid);
the prosecution of individuals charged with corruption; and
monitoring undertaken by human rights commissions and civil society t ensure law and justice institutions are accountable t the public
The term ‘legal information’ will be used to refer to all information relating to both the corporate management (finances, human resources, caseloads, etc) and technical functions (judicial decisions, prosecution briefs, etc) of law and justice sector institutions
Executive Summary
Significant positive structural reforms to the Indonesian law and justice sector have been undertaken over the past ten years, including the separation of the judiciary from the executive arm of government, the recognition of a broad range of basic human rights and the establishment of a number of new specialized and supervisory institutions
However, the sector continues to face a range of challenges, resulting in a severe lack of public trust in key sectoral institutions
The crisis of public confidence in the law and justice sector is self-fulfilling: without adequate public support, the sector will not be able to attract the personnel, resources and constructive engagement with civil society required in order to make positive reforms
The significance of the law and justice sector to strengthening the rule of law and democratic gains as well as contributing to Indonesia’s broader development goals, the recent high-level commitments to reform in the sector, and the existence of important relationships with Australian counterparts are the primary reasons Australia plans to continue assistance to the sector
Target Areas
The focus of the AIPJ will be primarily on working with national-level law and justice institutions to transform the high-level reform commitments made over the past ten years into concrete improvements to the way the community interacts with the sector
This focus aligns with the next phase in the trajectory of Indonesia’s law and justice sector reform, which has developed from a period of little reform (pre-1998), to a focus on designing new standards and institutions (1998-2003) and then through an emphasis on establishing and ‘road-testing’ institutions (2004-2009)
In order to support this next phase in the development of Indonesia’s law and justice sector, Australian assistance through AIPJ will be targeted at priorities which Indonesia has identified as being of critical importance to the sector and for which assistance is likely to bring about sustainable and meaningful impacts
These priorities are:
improving court-based dispute resolution systems for marginalised groups (including increasing the use of circuit courts and fee waiver cases);
improving the capacity of public prosecutors to conduct prosecutions and communicate with the community in relation to corruption-related crimes;
increasing the publication and usefulness of judicial decisions and the annual reports of key justice institutions;
improving legislative frameworks for the provision of legal aid (including supporting public participation in the drafting of a Legal Aid Bill);
supporting the capacity of civil society and human rights commissions to support law and justice sector reform
Partnership with Indonesia
AIPJ will build on the assistance AusAID has provided to Indonesia’s law and justice sector over the past ten years, continuing the gradual scaling up of Australia’s engagement in this vital sector
While AIPJ will utilise the relationships and expertise formed throughout the last decade, its implementation will differ from previous assistance in several important ways
AIPJ will be closely aligned with the Indonesian Government’s priorities in the law and justice sector, including the priorities highlighted in the Medium Term Development Plan 2010-14
Although there are limited overarching sector-wide reform policies, a range of laws and policy frameworks demonstrate a clear commitment and emerging set of priorities for reform of the sector
Australia’s assistance to the sector will represent only a small fraction of the total resources in the sector, but a significant portion of funds dedicated solely to the reform in the sector as the Indonesian Government’s budget is almost entirely spent on routine expenditures and many key civil society organisations operate largely on donor funding
In order to support such reform, AIPJ will focus on bringing about sustainable change through contributing to the abovementioned priorities – including, where possible, supporting constructive engagement on these priorities between state institutions and civil society
AIPJ’s approach to working in the areas identified will involve a strong commitment to developing partnerships and promoting policy dialogue between Indonesian and Australian law and justice institutions
This is in recognition of the growing Australian whole-of-government interest in building partnerships with counterparts in Indonesia, and the fact that some of the most successful activities under previous Australian assistance to the sector involved peer-to-peer linkages
AIPJ’s approach will also involve efforts to improve the ability of key Indonesian law and justice sector institutions to monitor and evaluate activities (including donor funded initiatives such as AIPJ) and policies relevant to the sector
AIPJ-funded activities will be both focused, in the sense that they will directly address the objective and outcomes of the program, and responsive to the fast-changing legal environment in Indonesia
AIPJ’s governance arrangements will reflect the importance both governments place on genuine partnerships in the sector
The governance arrangements will involve a Partnership Board comprising ex-officio  representatives from a range of Indonesian and Australian partner bodies
This Board will promote whole-of-government engagement between the two countries and ensure that AIPJ activities are aligned with the Indonesian Government’s priorities in the law and justice sector
In addition, AIPJ will be managed by an AusAID Program Director to promote the sustainability of relationships formed between Australian and Indonesian partners under AIPJ beyond the term of a managing contractor
Expected Results
By the end of the AIPJ, it is expected that Indonesia’s courts, prosecutors and human rights institutions will be better able to supply quality legal services and information to the community
Such improvements will likely involve, for example, the introduction of court policies (such as fee waivers and circuit courts) to provide dispute resolution services to a greater number and diversity of justice-seekers;
the regular publication of clear reasons for executing or dropping corruption prosecutions;
online access to the annual reports of key institutions and to decisions in individual cases; less dependency on donor funding for legal aid; and greater levels of robust scrutiny and analysis of the extent to which relevant institutions guarantee the rights of the poor and marginalised
These outcomes will contribute to greater levels of public trust in the ability of the Indonesian formal legal system to offer fair, accessible, transparent and predictable decisions and rules for all
This is a pre-requisite for the achievement of Indonesia’s long-term goal of entrenching the rule of law and upholding human rights – and, therefore, a pre-requisite for the consolidation of democracy, and sustainable and inclusive development in the country more broadly
INTRODUCTION
1.1 Purpose and structure of this document
This design document advocates for continuation of the partnership between Australia and Indonesia in the justice sector through a new program of assistance: the Australia Indonesia Partnership for Justice (AIPJ) over the next five years
AIPJ’s ultimate goal is to support Indonesia to achieve its long-term goal – as articulated in its National Long-Term Development Plan 2005-25 – of entrenching the rule of law and upholding human rights
Well-functioning law and justice institutions and a government bound by the rule of law are important to economic, political and social development and the consolidation of democracy
This document recognises that the Indonesian law and justice sector is diverse, complex and has only recently emerged from a range of historical constraints to its development
As such, AIPJ has been designed based on the premise that progress reforming the sector will be both complex and incremental
AIPJ is also designed with consideration to the fact that the sector’s needs far outweigh what a single donor can address, and that entrenching the rule of law and upholding human rights in Indonesia will require significant Indonesian Government investment as well as international assistance and partnerships beyond this five-year program
The purposes of this design document are to: (i) provide the basis for a decision to commit funds; (ii) provide the overarching framework for activity implementation; and (iii) provide the principal reference point for performance reviews
The document is structured as follows:
Part 2 describes the in-country context and contains an analysis of the rationales for continued Australian assistance to the sector and the particular problems such assistance should target;
Part 3 describes the scope and goals of the AIPJ, including the expected outcomes and proposed approaches for attaining them; and
Part 4 outlines the implementation arrangements, including the mechanisms for the governance and management of AIPJ
The annexes to this document provide readers with additional information relating to this design
Further, deeper analyses of the sector are contained in the AIPJ Background Information Pack
1.2 Design methodology
This design commenced in mid-2008 with the commissioning of two experts on Indonesia’s legal development – one international expert and one Indonesian expert – to conduct a range of stakeholder consultations and develop a comprehensive Indonesian Legal Sector Analysis
This analysis, followed by further consultations with a range of stakeholders in Indonesia, informed the development of an AIPJ Concept Note which passed peer review on 1 June 2009
Following the concept peer review, an AIPJ Design Team was formed
This team comprised AusAID and Bappenas officials  reflecting the importance of partnership as a key theme of the AIPJ
The Design Team held a number of workshops and consultations with government and non-government stakeholders in both Australia and Indonesia (details at Annex 5.1) and sought specialist inputs from design, monitoring and evaluation, and costings experts
ANALYSIS AND STRATEGIC CONTEXT
2.1 Country and Sector Issues
2.1.1 Indonesia’s Development Context
In 2008, Indonesia transitioned out of the World Bank’s International Development Association of least developed countries
The fact that Indonesia is now a (lower) middle-income country is reflected in the relatively small portion of its Gross Domestic Product generated by development assistance – approximately 0.5 per cent of the total GDP and only 2.5 per cent of government spending
Recent economic growth and increased social spending has seen the number of Indonesians living below the national poverty line  reduced to 32.5 million (14.5 per cent of the population)
However, a large number remain very vulnerable to poverty; although 14.5 per cent of the population live below the national poverty line (US$1.55 per day on a PPP basis ), 42.6 per cent live on less than US$2 per day (PPP)
Indonesia’s poverty alleviation progress at a national level also hides significant sub-national disparities
For example, 4.3 per cent of people in Jakarta are currently living under the national poverty line compared to 37.1 per cent in Papua Province
Indonesia is on track to achieve the MDGs relating to universal primary education, gender equality and the empowerment of women and reducing child mortality
It is making progress towards halving the proportion of people without sustainable access to safe drinking water
However, the country is unlikely to achieve the MDG of reducing by three-quarters the maternal mortality ratio and is struggling to reach MDG targets relating to malnutrition, access to basic sanitation, reducing the prevalence of HIV/AIDS and tuberculosis and reversing the loss of environmental resources
Indonesia’s development achievements and challenges point to the need for donors to assist Indonesia to cement its position as a middle-income country, transition within this category from a lower-middle to an upper-middle income country, and to ensure that such growth is inclusive
The law and justice sector has an important role to play in this transition
A well-functioning law and justice sector creates an enabling environment for the achievement of the MDGs and would play an important role in alleviating poverty and promoting sustainable development in Indonesia by:
building confidence in the capacity of state institutions to ensure security and reducing the need to resort to violence to resolve disputes;
enabling the poor and the marginalised to address their grievances;
guaranteeing certainty to domestic and international investors;
reducing corruption; and
strengthening democracy and supporting the development of a robust, pluralist civil society
2.1.2 The Current State of Indonesia’s Law and Justice Sector and Priorities for Engagement
In 2008, AusAID commissioned a comprehensive analysis of Indonesia’s law and justice sector for the purposes of informing this design
This analysis described three periods in the reform trajectory of the Indonesian law and justice sector:
Pre-1998 when little commitment was made to the rule of law and human rights;
1998-2004 when entirely new legal and institutional frameworks were established;  and
2004-present during which the focus of reform has begun to shift toward implementing the new frameworks
This present period can be seen as ‘road testing’ and consolidation of the new frameworks
The law and justice sector now appears ready to enter a new phase in which the high-level reforms made since 1998 are implemented in ways that improve the transparency, accountability and accessibility of relevant institutions and result in concrete changes to the way the community interacts with key institutions in the sector
Australian assistance will support efforts in this direction to improve the effectiveness of the sector as a whole
Australia’s assistance to Indonesia will prioritise funding to strengthen the supply of accessible and high-quality legal services, while also assisting communities to articulate more effective demand for such services in order to encourage the provision of better quality services by the formal sector
These two aspects will be fundamental to achieving the objective of the program:
Increased access to better quality legal information and services
This objective is consistent with an acknowledgement that translating high-level reforms into concrete changes which meet the law and justice needs of the community will involve processes which are both:
technical, involving stakeholders learning and developing improved responses to law and justice challenges; and
political, involving the content and legitimacy of law and justice institutions being “subjected to intense scrutiny from a broad cross-section of stakeholders, with all of the compromises, disappointments and ‘messiness’ that this inherently entails.”
Analytical overview of the Indonesian law and justice sector
According to the World Bank’s 2008 Worldwide Governance Indicators, Indonesia’s law and justice sector has made slow but positive progress since 1998, from a very low base
At present, Indonesia ranks in the bottom 28.7 per cent of countries for ‘rule of law’, up from a rank of 23.8 in 1999
Similarly, Indonesia’s ‘control of corruption’ percentile ranking has increased from 9.2 in 1998 to 31.4 in 2008
However, Indonesia still lags behind other lower middle-income countries, which average 9.1 and 7.1 percentile points above Indonesia for the ‘rule of law’ and ‘control of corruption’ indices respectively
This indicates that, without meaningful and sustainable reform to the sector, law and justice issues may act as a bottleneck to Indonesia’s efforts to entrench and progress its status as a middle-income country
The Indonesian Government’s own system for measuring bureaucratic effectiveness, the SAKIP,  assesses the country’s law and justice institutions as among the least effective
For example, the most recent national SAKIP assessment, which assessed the effectiveness of 74 national government agencies, ranked the Judicial Commission, Supreme Court,  Attorney-General’s Office (AGO) and Ministry of Law and Human Rights at numbers 74, 73, 68 and 64 respectively
Reformers within the sector acknowledge the challenges – former Chief Justice Bagir Manan has stated in relation to the Supreme Court’s reform efforts, for example, that “every clear-thinking person must admit that this is very difficult work” and that “the significant amount of time required to achieve court reform does not receive sufficient acknowledgement”
As discussed below, all of these institutions remain centralised, unlike institutions in many other sectors following recent moves toward greater levels of decentralised governance
Significant positive reforms have been undertaken at a structural level throughout the past ten years, including the separation of the judiciary from the executive arm of government and the recognition of a broad range of basic human rights
The establishment of a Constitutional Court with full review powers has emerged as a powerful and highly respected vehicle for the rule of law, and as a model for a well-run court and a financially clean and accountable institution
In addition, a new Anti-Corruption Commission (KPK) is focusing on attacking high-level corruption, including in the legal system
Supervisory bodies have also been established for the courts (Judicial Commission), prosecution (Prosecutorial Services Commission), the delivery of public services (Ombudsman) and the protection of women’s rights (Commission for the Elimination of Violence Against Women)
A recently passed Freedom of Information Law is due to come into effect in 2010, which will work to encourage greater transparency within the law and justice sector
The Supreme Court has reported, for example, that less than 19,000 civil disputes (excluding family law cases involving Muslims) were registered at first instance and intermediate level throughout the entire country in 2009
This is a rate of less than one case per 10,000 citizens, which is significantly lower than other countries in the region
In fact, it appears that the total number of civil disputes before Indonesian courts has changed little since independence, despite a large increase in the population
Most Indonesians instead resolve disputes through informal means, which can often lead to discriminatory, unpredictable and/or unsustainable outcomes
As extensive research has shown, the quality of informal dispute resolution is strongly influenced by the existence of formal alternatives
Therefore, in order to improve informal mechanisms, Indonesia’s formal law and justice system needs to offer a credible alternative by complying with international standards and adequately addressing the legal rights and legitimate expectations of Indonesian citizens
Many Indonesians are unable to access the formal legal system due to:
the costs associated with registering cases and difficulties in obtaining legal aid and physically accessing court buildings (due mainly to high transport costs); and
the lack of user-friendly mechanisms within courts, prosecutorial agencies and the national human rights institutions for registering grievances
There is also general lack of faith in capacity of the country’s law and justice institutions to deliver quality legal service
The reasons for this are complex, varied and inter-related
They include:
Lack of certainty in judicial and prosecutorial decision-making
Court judgements are often unavailable or inexplicable, resolution of disputes (particularly commercial disputes) is highly unpredictable, grounds for prosecution and case dismissal are opaque and enforcement of judicial decisions is weak
Lack of consistency in legislation and case law
Indonesians are often unclear about their rights in particular situations due to inconsistencies in case law and, in particular, between local regulations and national laws (including Indonesia’s Constitution and international human rights obligations)
Corruption
Corruption is a key reason for the lack of public trust in law and justice institutions
In the Global Corruption Barometer 2009, for example, Indonesians ranked the judiciary as the second-most corrupt institution in the country, following Parliament
Marginalisation
Some groups, such as women and people with disability experience particular difficulties in obtaining just outcomes, as discussed below
When Indonesians do bring cases to court, the types of cases generally reflect the main sources of conflict in the country generally – criminal offences, family related disputes and land conflicts
Key issues in relation to court cases in these areas include:
Approximately 93 per cent of cases registered before Indonesian courts are in relation to criminal offences
Of these, around 89 per cent involve minor infringements, such as traffic offences
A smaller number involve what the Indonesian legal system has classified as ‘special crimes’ (tindak pidana khusus)
These crimes, which include corruption, illegal logging and child abuse, are crimes which Indonesia regards as requiring special attention due to their potential to have broader social impacts
Of all ‘special crimes’, corruption has become the main focus of the Indonesian Government in recent years, due in part to its capacity to undermine the legal system as a whole and the ability of authorities to recuperate investigation costs through asset seizures
Anti-corruption assistance, including efforts to enhance judicial transparency, is also one of the areas of law and justice sector reform where donor funding appears to be most welcome and most able to have an impact
Transnational criminal activity also falls into the category of ‘special crimes’
Indonesia is both a target and a transit point for a range of transnational crimes, including terrorism, human trafficking, narcotics trafficking and people smuggling
These crimes are fundamentally a consequence of the weak status of the rule of law and the relative infancy of Indonesia’s civil society
Despite its high profile, transnational crime is an area that generally has a lesser impact on Indonesian citizens as a whole relative to domestic corruption and other criminal and civil matters
The majority of family related disputes, which make up approximately seven per cent of the court system’s total caseload (or around 60 per cent of the total caseload excluding administrative infringements), involve divorce, inheritance and domestic violence cases
In the formal system, the majority of family related disputes are addressed through the religious court system
Substantial inroads have been made in recent years, in part with Australia’s assistance, to improve the religious court system, which is now one of the most respected areas of the law and justice sector
Further improvements in this area will help to consolidate this system and provide an example to the other sectors of what can be done
Little statistical information is available on land disputes, but they are consistently reported as both the most difficult to resolve and the most likely to trigger violence
Land disputes often result in environmental degradation, poverty and violent conflict
The resolution of land disputes is severely hindered by an unclear legal framework and a lack of recognition of the rights of disenfranchised communities
The legal system has a role to play in improving access to land dispute resolution for poor and marginalised groups, which could involve learning from the positive examples set by the religious courts
However, the systemic problems underpinning many land disputes will require further high-level reforms to the legislative and institutional framework regulating real property in Indonesia
Opportunities for and constraints to development in the sector
Key supply-side issues
The overarching constraint in the law and justice sector is the lack of organisational and personnel capacity within key institutions
The sector is very large; in addition to their Jakarta-based headquarters, the General Courts, the Religious Courts and the Attorney-General’s Office, for example, each have intermediate offices in all of Indonesia’s 33 provinces and local offices in almost all of the approximately 500 districts and municipalities
Basic management capacity (including strategic planning, budgeting and evaluation) throughout this vast sector is lacking, while human resource capacity of the country’s 6,000 judges and other key law and justice sector personnel is exacerbated by the low quality of tertiary legal education and the inability of professional associations to train, monitor and discipline members
This reinforces a low regard for legal professionals
Efforts to improve this situation, including through a re-assessment of resource allocation to the sector,  are hampered by the fact that Indonesian policy-makers have faced obstacles in developing and implementing whole-of-government policies for law and justice sector reform
This situation ‘basically leaves it to each legal institution individually to tackle reform, and indeed, whether to reform at all.’  No Indonesian Government policy currently exists on budget reforms, internal structures, personnel or strategic planning of the law and justice sector as a whole
Related to this is the lack of overarching monitoring data for the sector
Although institutions are currently struggling to translate high-level reforms into services and information at the local level, there is growing momentum in Indonesia, as demonstrated by the National Access to Justice Strategy, to strengthen formal dispute resolution mechanisms at the local level and increase the supply of legal aid, particularly for poor and marginalised groups
Australia has already been assisting courts, governments and civil society in these areas,  and opportunities to improve access to courts are increasing, with the substantial reduction in case backlogs (also supported by Australian assistance)
In 2008, Indonesian courts (excluding the Constitutional Court) decided 99 per cent of first instance cases registered and 96.25 per cent of appeals cases
The progress made in reducing backlogs represents the first step in improving the effectiveness of court-based dispute resolution
The next step is to focus on improving the quality of these services and the public’s access to them (including access by poor and marginalised litigants)
The prosecution of crimes involving powerful individuals, particularly those implicated in corruption, is falling short of public expectations
The greater the public distrust in the Attorney-General’s Office, which is the country’s primary public prosecution agency, the greater the likelihood that it will continue to engage in the corrupt practices which led to the distrust in the first place
Corrupt practices continue to thrive in an arena where information on the progress of prosecutions is not systematically available
Furthermore, public prosecution agencies which are able to receive advice from the public and communicate the extent to which they are following-up on such advice are likely to gain public trust and generate demand for continued improvements in formulating and executing prosecutions
This calls for the need to improve the transparency of prosecutorial processing and the responsiveness of the AGO in its interactions with the public
Key demand-side issues
While the capacity for the supply of quality legal services is weak, capacity for sustained public demand for improved legal services is also weak
This calls for the need to strengthen public pressure for access to quality legal services and information
Public participation in the selection of judges and prosecutors, in the drafting of legislation and in commenting on the quality of laws and their enforcement remains largely tokenistic
Knowledge of legal rights, particularly basic human rights, is still very low and public outreach is poor
This is not helped by the fact that many of the NGOs that played a strong role in the initial push for legal reforms after 1998 are currently struggling to redefine their role in the new phase of reform
The most dynamic NGOs have transformed themselves from oppositional forces into either organisations from which Indonesian Government and judicial institutions can draw technical assistance and/or into policy monitoring and advocacy organisations
However, the capacity of NGOs to articulate community concerns, contribute to debates in society and advise policy-makers is often undermined by the practice of donors using them as service providers
This will require donors to work with NGOs in ways which strengthen their internal management, including personnel and financial, so they can perform important accountability functions and retain talent
Demand for effective legal services is also constrained by the lack of information available in key areas
One key constraint to improving the management of Indonesian courts as well as the quality of their decisions is the lack of access to both corporate information (such as transparent user-fees and detailed annual reports at all levels of the judiciary on court finances, human resource management, caseloads, etc.) and judicial decisions
This reduces the level of scrutiny of key institutions by, for example, academics, NGOs and the media, and in doing so weakens the accountability of these institutions to the public at large
In response to this, the Supreme Court has indicated a commitment to improving access to judicial information, as articulated in Supreme Court Regulation 144 of 2007 concerning Access to Judicial Information  and reaffirmed in the Supreme Court’s 2008 Annual Report
Australia plans to significantly increase its assistance to this priority area, which is likely to:
enhance the consistency of judicial decision-making by allowing courts to access decisions of other courts; improve access to courts by reducing the levying of inflated user-fees;
and minimise the extent of corruption by ensuring greater accountability of Indonesian courts to academics, the media and ultimately the Indonesian public
An effective legal sector is one that is accessible to all people and able to provide fair decisions and rules for all people
Despite its impressive record of ratifying all but two of the major international human rights conventions  and enacting several national laws on human rights (including one that ensures the independence of the National Human Rights Commission), Indonesia is struggling to reconcile and resolve past violations of human rights  and to meet several of its international human rights commitments
The main human rights issues facing Indonesia today include: religious freedom; freedom of expression; torture and ill-treatment of detainees; sexual harassment, exploitation and human trafficking; land rights; and environmental degradation
Assistance to the National Human Rights Commission and the National Commission for the Elimination of Violence Against Women, will address the organisational constraints these national human rights institutions face in conducting public outreach activities, particularly from their offices outside Jakarta
These independent, government-funded institutions act as crucial bridges between state and non-state actors in the sector
Groups that are particularly disadvantaged with respect to the law, include:
Women and the law: Women, including women with disability, have difficulties accessing formal and informal dispute resolution processes, and in obtaining just outcomes from these processes
Substantive constraints for women include:
gender biased and conflicting laws and regulations;
judicial interpretations and rulings (including customary law);
and the lack of available, accessible and affordable legal services
This calls for a continuation of Australian support to the National Commission for the Elimination of Violence Against Women and meaningful attempts to integrate the rights of women to access justice into all other initiatives in the sector
Rights of people with a disability: The incidence and prevalence of disability in Indonesia is largely unknown, and issues faced by people with disability in enforcing their rights remain largely unmapped
There is also little general public awareness on the rights of people with a disability in Indonesia
To the extent that research has been conducted on these issues, it suggests that Indonesians with disability experience discrimination in a range of contexts and face significant challenges to accessing dispute resolution mechanisms and other legal services
The need to address this situation aligns closely with Australian policy and whole-of-government experience  in the area, as well as an emerging recognition in Indonesia of the importance of this issue
Employment and workers rights: Workers, particularly in the informal sector, face many problems enforcing their employment rights
Children and migrant workers remain particularly vulnerable under the current system
This warrants continued assistance to address some of the systemic issues discussed above, including improving complaint handling systems within national human rights institutions and the transparency and effectiveness of the court and prosecutorial systems
2.1.3 Working with Key Justice Sector Actors
Given the above analysis, Australia’s priority for assistance under AIPJ will be to support the Indonesian Government’s efforts to develop and implement an overarching government policy to support service delivery within the legal sector, if momentum for the formulation of such a policy emerges during the life of AIPJ
In the absence of such an overarching policy, Australia will provide assistance to strengthen individual institutions on the issues that are most likely to assist the law and justice sector to translate recent reforms into concrete outcomes for the community as a whole, including the most vulnerable groups in society
The purpose of AIPJ will be to assist Indonesian law and justice institutions to improve the provision of quality legal services and information, particularly at the local level
As the justice sector has not been decentralised, local level bodies have little or no financial or policy-making autonomy
Courts, prosecutorial agencies and executive government agencies at the local level are a direct extension of the Supreme Court, Attorney-General’s Office and Ministry of Law and Human Rights respectively
AIPJ will therefore work primarily with these central institutions, with a view to bringing about measurable outcomes at the local level
In determining which institutions will receive direct assistance through AIPJ, Indonesian law and justice sector actors were assessed according to their ability to impact on the wide-ranging issues outlined above, their capacity and commitment to reform, and the extent to which they fit Australia’s comparative advantage as a donor (particularly in terms of existing relationships and policy directions)
The inclusion of non-state actors as primary stakeholders is based on the fact that several national-level justice sector organisations are highly technically proficient and are regularly approached by reformers within state institutions to provide important technical and political support
Although a much broader range of actors could have been classified as worthy of AIPJ support, this process was designed to limit AIPJ’s interaction to a manageable number of institutions
Based on this assessment, priority stakeholders for engagement under the AIPJ are listed below, according to whether they will be primary partners (with which AIPJ will engage very closely), secondary partners (with which AIPJ will seek some engagement) and other key stakeholders (which AIPJ will monitor and engage with in dialogue where possible)
In addition to these partners, Bappenas, as Indonesia’s development planning and donor coordination agency, will play a key role in coordinating AIPJ assistance to the sector
The following table summarises the findings of this assessment
Primary partners Secondary partners Other key stakeholders
Supreme Court – General Courts Division
Supreme Court – Religious Courts Division
Attorney-General’s Office
National Human Rights Commission (Komnas HAM)
Commission on the Elimination of Violence Against Women(Komnas Perempuan)
Corruption Eradication Commission (KPK)
irectorate General for Human Rights, Ministry of Law and Human Rights
University of Indonesia Centre for Disability Studies
Targeted non-state justice sector organisations   Directorate General for Legislation
National Legal Development Board (BPHN)
Coordinating Ministry for Political, Legal and Security Affairs
Indonesian Bar Association (PERADI)
Law schools
Supreme Court – Administrative Courts system (PTUN)
Judicial Commission  Constitutional Court
Ombudsman
Media
National parliament
Sub-national parliaments
Sub-national executive governments
This categorisation will be reviewed when developing the Draft Annual Work Plan throughout the life of the program to ensure AIPJ is responsive to the sector’s institutional reform dynamics
2.2 Australia and Indonesia’s Framework for Development Cooperation and Law and Justice Sector Reform
Reform in Indonesia’s legal system is only sustainable if it is driven and led by internal commitment to reform on the part of the Indonesian state and civil society organisations
As described above, Indonesia has made a range of policy commitments which indicate a significant degree of political will to bring about the changes required to meet the law and justice needs of the community
In addition, President Yudhoyono demonstrated a strong commitment to rule of law and human rights during his first term and appears willing to further enhance his administration’s prioritisation of these issues in his second term by closely monitoring the law and justice components of Indonesia’s Medium Term Development Plan 2010-14 and supporting champions of change in the sector at ministerial and senior public servant levels
Australian priorities squarely align with these directions
2.2.1 Relevant Indonesian Laws
The ultimate framework for the AIPJ is the Constitution of the Republic of Indonesia 1945, which now recognises the pre-eminence of the rule of law and enshrines a significant number of internationally recognised human rights
The Indonesian Government recognises that these provisions are still largely aspirational, and has therefore included them in its National Long-Term Development Plan (RPJPN) 2005-25
As described in Part 3 below, the Indonesian Government’s long-term goal in relation to the rule of law and human rights will also form the long-term goal of the AIPJ
A range of other laws, the key ones of which are listed in Annex 5.3, also contain Indonesian Government priorities in the law and justice sector
2.2.2 Paris Declaration and Jakarta Commitment
In January 2009, Australia and several other donors endorsed the Jakarta Commitment: Aid for Development Effectiveness – Indonesia’s Road Map to 2014
This policy promotes Indonesia’s ownership over development assistance to the country and commits donors to adhere to the principles stipulated in the Paris Declaration on Aid Effectiveness (2005)
2.2.3 The Australia Indonesia Partnership Country Strategy 2008-13 and Indonesia’s National Medium-Term Development Plan (RPJMN) 2010-14
The RPJMN is designed to be the primary guiding policy outlining Indonesia’s medium-term (five-year) development priorities
The RPJMN process is synchronised with the presidential election cycle, such that each five-year RPJMN is required to be finalised and incorporated into a Presidential Regulation in the January following the October inauguration of the new (or incumbent) president
The RPJMN 2010-14, as approved by Presidential Regulation No 5 of 2010, outlines the key priorities for President Yudhoyono’s second (and final) term in office
The five “development agenda items” of the RPJMN 2010-14 are:
Economic Growth and the Improvement of People’s Welfare;
Improved Governance Systems;
Upholding the Pillars of Democracy;
Law Enforcement and the Eradication of Corruption; and
Inclusive and Just Development
Fundamental progress on reform in the law and justice sector is one of the cross-cutting “development challenges” identified in the RPJMN, which states that “law must be at the forefront in a democratic system
If law is enforced in a consistent manner, with the eradication of corruption, it is capable of ensuring security, fairness and business certainty
Much has been done to improve the legal system, yet at present much needs to be done to improve the role law plays in the day-to-day regulation of Indonesian society”
The strategies outlined in the RPJMN to achieve this have informed the development of AIPJ’s objective and expected outcomes, as discussed in Part 3 below
Consistent with the Paris Declaration and the Jakarta Commitment, the Australia Indonesia Partnership Country Strategy 2008-13 is currently aligned with RPJMN 2005-2009 and will be reviewed in 2010 to ensure alignment with the RPJMN 2010-14
The purpose of the Strategy is to articulate key priorities for the bilateral development cooperation relationship
The third of its four pillars is a commitment to “Democracy, Justice and Good Governance”,  which in turn includes amongst its objectives that Australia will work with Indonesia to improve the capacity, accountability and responsiveness of legal, democratic and oversight institutions and processes
It is intended that AIPJ be a flagship program under this objective
Although AIPJ will also support the Pillar 4 objective of ‘Improved capacity to ensure transport safety and security and to counter threats from transnational crime’ over the long-term,  it is unlikely to support individual activities under this pillar
Combining a systemic, “building blocks” approach to law and justice sector reforms with a more narrow focus on transnational crime under the Australia Indonesia Legal Development Facility (LDF) led to comparatively less traction for the transnational crime components
This is because – despite the quality of the individual outputs under this component – there were few direct synergies between activities designed to combat transnational crime and activities in support of broader reform, and much greater levels of demand from the Indonesian Government for the latter
The AIP Country Strategy states that the AIP will:
support improved institutional capacity in the courts and in key government partners and law-making processes at all levels of government;
seek to improve access to justice for poor and marginalised communities;
continue to support human rights and women’s rights institutions; and
continue to assist Indonesia to implement its National Action Plan on Corruption Eradication (RAN-PK), including ongoing support to key institutions in the legal sector, including the Corruption Eradication Commission (KPK)
The AIP Country strategy also outlines four cross-cutting high priority issues for the AIP: gender, anti-corruption, partnership and performance orientation
These will be addressed under the four AIPJ cross-cutting issues
2.2.4 The Anti-Corruption Policy Framework
The Australia Indonesia Partnership Anti-Corruption for Development Plan 2008-13 outlines the ways in which Australia and Indonesia will work together to protect Australian funds in Indonesia and to combat corruption throughout the country more generally
The Plan builds upon Australia’s anti-corruption for development policy, Tackling Corruption for Development and Growth, and emphasises the importance of mainstreaming anti-corruption throughout all AusAID programs
The Plan also outlines specific areas where Australia will assist Indonesia to combat corruption through prevention, enforcement and monitoring and evaluation
AIPJ’s direct anti-corruption activities will focus on the first two commitments under the Plan’s Enforcement Pillar: (a) improving investigation and prosecution of corruption crimes; and (b) strengthening enforcement institutions such as the KPK and AGO
However, as an AIPJ cross-cutting issue, anti-corruption will also be a feature of all AIPJ activities
By increasing the opportunities for academics, the media and NGOs to hold key law and justice institutions accountable, activities in relation to improving the transparency of legal institutions, for example, will also contribute to the Australia-Indonesia anti-corruption agenda as outlined in the Plan
AIPJ’s anti-corruption activities will be informed by the Indonesian Government’s National Strategy on Corruption Eradication (Stranas PK) released in December 2009
The Stranas PK replaces the concluded National Action Plan on the Eradication of Corruption 2004-2009 in shaping whole-of-government approaches, both preventative and repressive, to the eradication of corruption
It is also designed to ensure that Indonesia complies with the UN Convention Against Corruption, which it ratified in 2006 and which Australia has also ratified
Among Stranas PK’s objectives are several commitments with which AIPJ will seek to align due to their close synergies with the broader scope of AIPJ and Australia’s comparative advantages as a donor
These commitments include:
implementing public administration transparency, effectiveness of public reports and improving public access to information on public administration through supervision;
accelerating corruption case management and strengthening coordination among law enforcement agencies;
strengthening law enforcement institutionally through improving the transparency and accountability of prosecutorial and other judicial institutions;
harmonising and synchronising UNCAC provisions with existing laws and regulations relating to corruption eradication; and
establishing a national monitoring and evaluation mechanism on corruption eradication, including information on the implementation of UNCAC in Indonesia
AIPJ’s assistance to Indonesia to combat corruption will also seek to support the 2009 Memorandum of Understanding (MoU) between the KPK and the Australian Attorney-General’s Department (AGD), the Australian Public Service Commission and the Australian Commission for Law Enforcement Integrity
This MoU seeks to strengthen practical cooperation between the parties and to develop institutional capacity to prevent and combat corruption
2.2.5 Indonesia’s National Access to Justice Strategy
The National Access to Justice Strategy states the Indonesian Government's view that there is a clear link between poverty alleviation and access to justice
Its aim is to position Indonesia at the forefront of promoting human rights, justice and legal empowerment of the poor in the Asia region
It proposes a set of broad and ambitious action plans relating to eight themes on accessibility in the law and justice sector (legal and judicial reform; legal aid; local governance; land and natural resources; women; children; workers; and poor and disadvantaged groups)
The National Access to Justice Strategy will provide a useful reference point for AIPJ
As the Strategy is not intended to be the overarching policy for reform of the sector, and is not being driven directly by law and justice institutions (courts, AGO, Ministry of Law and Human Rights, etc), it will not be the sole policy with which AIPJ seeks to align
The action plans formulated under the ‘legal and judicial reform’, ‘legal aid’ and ‘women’ themes, however, will inform AIPJ activities in these areas
In addition, it is likely that certain other components of the Strategy will be incorporated into the RPJMN 2010-14 and will therefore necessarily shape the strategic direction of AIPJ
2.2.6 Indonesia’s Institutional Blueprints
Many key Indonesian law and justice institutions have, or are developing their own individual reform strategies
In 2010, the Supreme Court, for example, is due to release the Supreme Court Strategic Plan 2010-2014 and the Supreme Court Blue Print for Reform 2010-2025
Where AIPJ is working with a partner that has such a strategy in place, AIPJ’s assistance will focus on supporting the priorities outlined in the strategy
2.2.7 Indonesian Government Engagement with Donors in the Sector
The Indonesian Government is presently encouraging donors to play an active role in assisting it to implement the commitments outlined above
Other donors in the sector include USAID, IMF (through the National Legal Reform Program), the EC, the World Bank and UNDP
Donors are not being asked to contribute to directly shaping the content of specific laws or the form of specific institutions, but to fund activities which can play a catalytic role – through, for example, exposing relevant actors to knowledge and best practice (from both within and outside Indonesia) or funding civil society organisations to support the reform agenda within parts of the government and judiciary – in improving the accessibility, transparency and accountability of the law and justice sector and the extent to which the community values and demands such improvements
In this way, donors have a role to play in assisting Indonesia to translate existing resources into better development outcomes
Development assistance to this sector is therefore not intended to simply supplement domestic resources, but to complement them
As this demonstrates, there is a clear and defined role for AIPJ to build on existing relationships and respond to these reform opportunities while they exist in Indonesia
2.3 Australia’s National Interests
Support for Indonesia’s law and justice sector will further Australia’s national interests by facilitating poverty alleviation and sustainable development in Indonesia and, more specifically, by:
Entrenching democratic, rule-based governance in Indonesia
Strengthening the rule of law will reinforce the value of democratic, rule-based governance to a critical mass of Indonesian citizens
This will ensure that the democratic reforms Indonesia has undertaken over the last decade become irreversible and, as a result, will facilitate continued strengthening of government-to-government and people-to-people links between Australia and Indonesia
Improving the experience of Australians using the Indonesian legal system
As people-to-people links between Australia and Indonesia strengthen, more Australians will make use of the Indonesian legal system in a personal capacity (as both complainants and defendants) – in relation to, for example, custody disputes, inheritance, defamation, consumer protection and criminal offences
Improving the accessibility, transparency and accountability of the legal system will benefit Australian users as well as Indonesians
Facilitating strategic policy dialogue
Australia’s readiness to support key institutions in Indonesia’s law and justice sector is likely to support existing court-to-court and government-to-government relationships between the two countries and open new opportunities for engagement in strategic policy dialogue on bilateral and regional legal issues
Creating certainty for Indonesian and Australian investors
Improving the accessibility, transparency and accountability of the legal system will lead to greater long-term certainty for both Indonesian and Australian businesses in Indonesia
This is likely to produce “win-win” outcomes for Indonesian investors, foreign investors and Indonesian jobseekers
Combating long-term factors which contribute to transnational crime
These factors include, for example, weak capacity and transparency of prosecutorial institutions and a lack of avenues for citizens to have their grievances addressed in an accessible, transparent and accountable manner
Assisting Indonesia to set an example of Islam coexisting with human rights, including gender equality
Indonesia’s law and justice sector is critical to underpinning its commitment to become a model to other majority Muslim countries of Islam coexisting with internationally recognised human rights
Discouraging instability and radicalisation by supporting the existence of a robust, pluralist civil society
Evidence suggests that broad-based civil society is likely to thrive in countries with strong rule of law and protection of human rights, and that this in turn is likely to discourage local conflicts and the emergence of violence-based radical ideologies
2.4 Overview of Lessons Learned from Australia and Indonesia Working Together in the Sector
Since 1999 Australia has been steadily increasing its assistance to Indonesia’s law and justice sector
Assistance began with judicial training activities commenced under the Government Sector Linkages Program (now PSLP), and was followed by the $4.6m Legal Reform Program (2002-2003) which began to extend technical assistance to several other institutions in the sector
Most recently, the $24.6m (2004–2009) Australia Indonesia Legal Development Facility (LDF), continued to build relationships and has begun to provide strategic assistance in the sector
Some of the key lessons to emerge from this assistance include:
The need to maintain flexibility, as institutions and individuals can gain or lose reform momentum within short periods of time
The importance of not spreading activities too thinly
A ‘critical mass’ is required in order to bring about sustainable reforms
The need to set coherent objectives so that constituent parts of Australian assistance are complementary and mutually reinforcing
The need to ensure that governance arrangements involve the primary stakeholders
It is important that strategic directions be set by individuals representing law and justice sector institutions
The importance of genuine partnerships
The most successful component of LDF was its work on access to justice and judicial reform, largely because it utilised a genuine partnership building upon existing Australia-Indonesia court-to-court relationships and aligned with the strategic plans of the Indonesian courts
The importance of working with both state and non-state institutions
Working at the intersection of state and non-state institutions appears to be an area in which Australia is developing a comparative advantage vis-à-vis other donors
The importance of using in-country expertise, in particular to reduce costs and build local capacity
The importance of AusAID playing an active role in ensuring that flexibility is matched by a strategic approach to assistance; that partnerships are developed between Indonesian and Australian institutions, rather than between Indonesian institutions and Australian managing contractors; and incorporating these roles into governance and management arrangements
Australia’s experience assisting Indonesia’s law and justice sector has resulted in growing expertise on how to provide assistance to this complex sector and the development of partnerships between key actors in Indonesia and their Australian counterparts
Australia’s longstanding support to the sector, the existence of institutional partnerships and the strength of the broader bilateral relationship have combined to make Australia a trusted donor in what is a very sensitive sector for external assistance
Indonesian law and justice actors generally perceive Australian assistance to Indonesia’s law and justice sector as being supportive of Indonesia’s long-term needs and interests
It was for this reason that the Mid Term Review of the LDF (2007) found that Australia’s assistance to the sector was among the most strategic vis-à-vis other donors, and why our continued assistance is welcomed by the Indonesian Government
SCOPE AND GOALS OF AIPJ
3.1 Conceptual Framework and Scope 
As discussed in Part 2, the AIPJ has been developed in the context of the Indonesian Government’s long-term goals of ‘entrenched rule of law and the enforcement of human rights’
This recognises the widely accepted view that governance reform, including of the law and justice sector, is a long-term endeavour and that substantive and sustainable change requires long timeframes and local ownership by both state and civil society organisations
It also recognises the fact that the capacities and partnerships established under AIPJ are expected to continue beyond the life of this initiative
AIPJ has therefore been developed in partnership with the Indonesian Government, coordinated through Bappenas, and will align with key Indonesian laws, policies and programs
Although AIPJ’s ultimate success will be the extent to which it contributes to the Indonesian Government’s long-term goal, this design identifies five outcomes which AIPJ itself will seek to achieve over its five-year duration
These outcomes are all closely aligned to current Indonesian laws and policies
3.2 Alignment of AIPJ goals and objective with GoI policies
Figure 1: AIPJ goals, objectives and alignment with GoI policies
3.2.1 Long-term (20 Year) Goal
As discussed in Part 2 above, the AIPJ is set within the context of Indonesia’s stated long-term goal for the law and justice sector
The Indonesian Government’s long-term goal in the sector, as described in the RPJPN and endorsed by both Parliament and the President through Law No
17 of 2007, is “entrenchment of the rule of law and enforcement of human rights, based on Pancasila  and the 1945 Constitution, and a legal system that is truthful, just, accommodative and reflective of public aspirations”
This will also form AIPJ’s long-term goal
3.2.2 Medium-term (5-10 Year) Goal
AIPJ’s medium-term goal is taken directly from one the Indonesian Government’s medium-term “key targets”, as articulated in the RPJPN 2010-14: “[improved] perceptions of justice seekers in relation to the comfort, certainty, fairness and safety of interacting with and receiving services from legal institutions.” 
A key weakness in Indonesia’s law and justice system is the gap between high-level commitments and on-the-ground implementation of these commitments
One of the most important pre-conditions for the achievement of the joint AIPJ-Indonesian Government long-term goal is the bridging of this gap
This in turn will require the implementation of reforms in a manner that builds the community’s trust and confidence in the formal legal system’s capacity to meet the needs of Indonesians
As such, achieving the medium-term goal is critical to enabling the Indonesian Government to meet its stated long-term goal
3.2.3 Objective and Expected Outcomes
AIPJ will have one objective that is aligned with the Indonesian Government’s priorities and matches Australia’s comparative advantages as a donor, and five outcomes which contribute to this objective
The outcomes under AIPJ’s objective are considered to be the main areas where changes must occur in order to achieve the objective, but they are also separate, important outcomes in and of themselves
Each outcome is closely related to the other outcomes; they are mutually reinforcing and strengthen opportunities for synergies and overall coherence
Potential activities under each outcome are proposed below, and may form the basis for engagement during the program’s first year
It is expected, however, that the actual program of activities will be finalised each year through an activity plan approved by GoA with GoI’s concurrence
Activities will be proposed in line with defined selection criteria, and indicators will be developed in coordination with GoI under each outcome area to assist in tracking progress towards AIPJ’s objective
Further details regarding implementation arrangements are provided in Part 4
In preparation for the expected mobilisation of AIPJ in late 2010, an interim transition program has been prepared, which will lay the groundwork for much of the work under AIPJ
This program, called the Australia Indonesia Partnership for Justice – transition (AIPJt), is discussed under the relevant outcome headings and further details are provided at section 4.9 below
Inception work under AIPJ is expected to focus heavily on institutional assessments of key partner institutions (or use existing assessments) to ensure that assistance is appropriately targeted to achieve maximum benefit for the institution
The objective and the outcomes which AIPJ will seek to achieve are as follows:
Objective: Increased access to better quality legal information and services
Outcome 1 Improved judicial dispute resolution systems  for marginalised groups (including the poor, women and people with a disability)
Outcome 2 Prosecutorial agencies better able to process corruption cases
Outcome 3 Increased public access to and use of legal information, particularly relating to human rights (including women’s rights) and anti-corruption
Outcome 4 Improved framework and delivery of a legal aid system
Outcome 5 Increased capacity of civil society organisations and national commissions to support Indonesian law and justice sector reform efforts
OBJECTIVE: Increased access to better quality legal information and services
The end of program objective focuses on strengthening Indonesia’s leading law and justice sector institutions to become more effective and eventually provide more cost-effective, accessible and predictable legal services and information
AIPJ recognises that the most effective way to strengthen these services is to work with both those demanding improved services, and those tasked with supplying these services
It recognises that poor and marginalised groups face particular problems in accessing services, and focuses particularly on the obstacles facing women and people with disability
The objective supports greater accessibility and accountability of key law and justice sector institutions, with a focus on the courts, prosecutorial agencies (AGO and KPK), and human rights commissions (Komnas HAM and Komnas Perempuan)
Accessibility will be supported by improving the capacity of the courts to provide services to as broad a range of potential court-users as possible and the capacity of prosecutorial agencies and human rights commissions to improve their complaint lodgement systems to receive complaints from throughout the community
Efforts to improve accessibility will involve a focus on women and people with disability who face particular obstacles in accessing justice, such as through being unaware of their rights and how to assert them and/or being unable to afford the court fees and transportation costs associated with settling disputes through the formal legal system
Accountability will be supported by working at the interface between these organisations and the community (e.g., complaints processing systems) and by assisting prosecutorial agencies to combat corruption both in the law and justice sector and more broadly
Where possible, efforts to support the accountability of relevant law and justice institutions will be linked to Indonesia’s commitments under international treaties and benchmarks
In line with the Indonesian Government’s priorities, AIPJ will prioritise assistance to improve the flow of legal information as a key to enabling civil society to engage in the law and justice sector, and to enabling legal institutions to monitor and act on their own weaknesses
Improvements to systems within law and justice institutions will be based on comprehensive capacity assessments, which will be carried out during the transition to and at the commencement of AIPJ
While the objective is primarily concerned with the direct interface between these institutions and the community, this does not preclude activities in support of enhanced leadership and management of these institutions where a capacity assessment points to these factors being key blockages to the institution’s ability to deliver basic services to the community
Outcome 1 Improved judicial dispute resolution systems for marginalised groups (including the poor, vulnerable women and people with a disability)
AusAID, through the LDF, has made significant progress in increasing access to Indonesia’s courts in the family law jurisdiction
Access and equity studies conducted on Indonesia’s Religious Court and General Court in relation to family law demonstrate that whilst there is generally high satisfaction amongst court clients with court services, significant barriers remain for the poor and people in remote communities accessing court services
The main barriers include court fees and the transportation costs to travel to court
Key achievements under LDF included working with the Religious Court to obtain budget increases to pay for fee waivers in family law cases involving poor court clients and for circuit courts (sidang keliling) in remote areas
AIPJ’s initial focus under this outcome will be to build on the achievements and relationships formed under LDF and AIPJt
It will conduct analysis, share best practices (e.g. from the Religious Court system) and facilitate policy development to increase the community’s access to court-based dispute resolution
This will include support for the courts to utilise and expand budget allocations for pro deo (pro bono) cases and circuit courts, and assistance to improve their monitoring and evaluation systems in relation to access for poor and marginalised groups, such as women who fall within this category, people with disability and people living with HIV/AIDS
Given the increasingly important role of the administrative courts (pengadilan tata usaha negara) in supporting freedom of information, guaranteeing public service delivery and protecting citizens against unlawful state action, AIPJ will seek to extend existing relationships with the Indonesian judiciary to these courts and assist them to socialise their role in upholding democratic values and expand their services to marginalised groups
If feasible and subject to Supreme Court priorities, Outcome 1 will include assisting the Supreme Court to establish innovative pilot projects at the district level for the purpose of informing central government policy and resource allocation
This could involve, for example, establishing pilot small-claims tribunals (for civil disputes involving relatively low amounts) attached to District Courts
Work under this outcome will also build on support to the Supreme Court’s blueprint for reform, efforts to improve judicial transparency and the strong relationship between the Indonesian Supreme Court and Australia’s Family and Federal Courts, which are a focus of AIPJt during 2010
Survey research will be used to assess the satisfaction of court users and inform future work in this area
Progress against this outcome over the longer term will be measured primarily by the number and diversity of individuals choosing to make use of court-based dispute resolution
The Supreme Court’s Judicial Reform Team Office will receive assistance to strengthen relevant law and justice institutions by identifying constraints to their capacity to deliver services at the local level (for example, constraints on the capacity of the Supreme Court to deliver effective and inclusive services through Pengadilan Negeri)
These constraints may include, for example, internal monitoring and disciplinary processes, budget allocations, financial systems, organisational structures, recruitment practices, salary structures or promotion and transfer policies agencies to review reform ideas, to incorporate relevant proposals into their institutional plans and policies
AIPJ will assist the Office to undertake objective diagnostics and then to formulate, articulate and engage in constructive policy dialogue around costed recommendations to address any constraints identified
Where necessary, these diagnostics could be undertaken by universities, think tanks or independent management consultants under the direction of the reform office
Outcome 2 Prosecutorial agencies better able to process corruption cases
Indonesia’s prosecutorial agencies – the AGO and the KPK – are key to eliminating corruption within the law and justice sector and more broadly
Their staff need to continue to develop technical skills in investigating and prosecuting corruption-related crimes
Achieving Indonesia’s anti-corruption goals will also require these institutions to put in place systems for ensuring that prosecutions are carried out effectively and that these institutions themselves are free from corrupt practices
Such systems could publish clear reasons for dropping prosecutions, and establishing mechanisms whereby the public is able to easily interact with prosecutorial agencies and be regularly informed on the progress prosecutors have made in responding to their concerns
The Indonesian Government’s National Strategy on Corruption Eradication highlights several measures which these institutions should take to achieve these goals, and AIPJ will use this Strategy to inform activities under Outcome 2
In particular, AIPJ will focus on assistance to ‘Prevention Strategy 2’ of the Strategy, which relates to improving the transparency and accountability of prosecutorial and judicial institutions, and which is closely linked to AIPJ’s objective and other outcomes
The needs of the AGO and KPK differ greatly so AIPJ – while not attempting to address the totality of the needs of these institutions – will be required to tailor its support accordingly
The KPK, for example, is now capable of designing and delivering training modules to junior staff itself
Its focus during the duration of AIPJ will therefore likely be on capacity building mid-to senior level staff through peer-to-peer links with other anti-corruption commissions, assessing options for enhancing its performance at sub-national levels and engaging in policy dialogue and analysis in relation to proposed anti-corruption legislation
The AGO’s needs include strengthening communication and interaction with the community (such as through the development of information systems on case management and the handling of complaints against prosecutors) and developing its capacity to monitor the quality of prosecutors (such as through the establishment of an assessment centre and performance evaluation system)
AIPJ could support key priorities in these areas, subject to engagement by senior officials
Activities under AIPJ Outcome 2 will take into account the central importance of building capacity for international legal cooperation in combating corruption
This could include supporting international cooperation with the AGO, the KPK, and the Ministry of Law and Human Rights to strengthen the impact of UNCAC and other international anti-corruption commitments, including in areas relating to money laundering and asset restraint, confiscation and recovery
AIPJ will also assist the Indonesian Government to monitor and evaluate relevant sections of the National Strategy on Corruption Eradication, which links to the Performance cross-cutting issue
In the lead-up to the mobilisation of the AIPJ, AIPJt will be working with the Indonesian Attorney General’s Office Reform Team to improve human resource systems and web-based complaints handling systems
Together with planned analytical work to assess where ongoing assistance will be best placed to support GoI’s anti-corruption agenda, AIPJt is expected to provide a strong basis for ongoing work under this outcome
Under this outcome, support will be provided to Attorney-General’s Program Management Office for similar activities to those undertaken by the Supreme Court’s Judicial Reform Team office under Outcome 1
In particular such funding will be provided to assist the Office to analyse and address constraints to providing services at the local level 
It will also assist the Office to review reform ideas, to incorporate relevant proposals into the AGO’s institutional plans and policies, and to implement reforms relating to AIPJ
Outcome 3 Increased public access to and use of legal information, particularly relating to human rights (including women’s rights) and anti-corruption
Australia has been supporting Indonesia’s efforts to achieve greater transparency of court information for several years in line with the Supreme Court Blue Print 2004-2009
A focus on publication of court decisions resulted in an increase in the number of General Court and Religious Court decisions available on the internet
The relatively recent release of key laws (such as Law No 14/2008 concerning Freedom of Information, or “UU KIP”) and administrative directives (Supreme Court Decree No 144 of 2007 concerning Access to Court Information, or “SK 144”) on this matter provide the basis to continue and expand this work and increase transparency of the law and justice sector
AIPJ will continue to support the publication of judicial decisions
Over the course of AIPJ, a significant increase in the number of decisions available on the internet (together with a reduction in the time taken to upload them) is expected
AIPJ will assist the Supreme Court to “socialise” SK 144 and UU KIP so that court officers at Intermediate Courts (Pengadilan Tinggi) and District Courts (Pengadilan Negeri) are aware of their obligations to provide court information to the public
Other ways AIPJ may support greater public access to and use of legal information include:
assisting with the establishment of Information Desks at Intermediate and District Courts, as required by law, and to monitor their use;
assisting with the establishment of legal aid posts as required under Law No 48 of 2009;
working with courts and civil society to develop visual and audio-visual tools to explain court processes to court users (including court users with visual impairment) and display of court fee information at courts;
working with the Supreme Court to expand the level of information made available to the public through its annual report (including information on court finances and case load management), and with civil society organisations to understand and analyse this information;
working with the Directorate General for Human Rights, relevant NGOs (such as legal aid providers and HIV/AIDS organisations) and the Disability Centre at the University of Indonesia to facilitate greater provision of primary information and analysis on human rights issues to the public;
working with the KPK to support its outreach programs at the national and sub-national level to inform the community about corruption and how to report it;
supporting civil society at both national and subnational levels to analyse and act upon available legal information; and
consolidating and expanding online access to judicial decisions and/or legislation
It is expected that timely and comprehensive public access to both sources of law (judicial decisions and legislation) as well as corporate information about law and justice sector institutions (such as financial and human resource management) will have an important impact on strengthening anti-corruption efforts
With greater access to information, academics, the media, NGOs and government institutions themselves will be in a better position to identify and respond to corruption
Access to information will also assist stakeholders to identify and reward champions of change in the sector
Access to judicial decisions and legislation is difficult, particularly when such information has been generated from local level courts and parliaments
Moreover, much of the country’s lower level judicial decisions are inconsistent with each other and sub-national legislation often conflicts with higher sources of law
AIPJ could explore ways of working with government and non-government agencies to support the establishment of systems for standardising judicial decisions and/or judicially reviewing sub-national legislation, particularly those relating to human and women’s rights (in line with Indonesia’s international obligations) and anti-corruption
In anticipation of AIPJ work under this outcome, in 2010 AIPJt will conduct an assessment of the possibilities for assistance in reconciling local regulations and laws (perda) with national laws, the constitution and Indonesia’s international legal obligations (particularly in relation to anti-corruption, human rights, women’s rights), including through judicial review
Outcome 4 Improved framework and delivery of a legal aid system
There is currently no formal legal aid regime in Indonesia
Whilst there are some legislative instruments which encourage the provision of pro bono legal services to the poor,  there is no overarching legislative framework which supports the community’s right to legal aid
Currently legal aid services are provided predominately by legal aid institutions (LBHs) and university law centres which have limited or no government funding
The National Access to Justice Strategy outlines the Indonesian Government’s commitment to address this situation and acknowledges that the “community’s demand for legal aid services exceeds the existing capacity of civil society organisations to provide such services”
It states that government involvement in providing services and administering legal aid, as well as empowering existing legal aid organisations and university legal centres, is of high importance
To assist the Indonesian Government to achieve its objectives regarding legal aid, AIPJ will support enhanced levels of policy dialogue between the Government, the National Parliament (DPR) and relevant civil society organisations on the issue
This may include, for example, assisting the Ministry of Law and Human Rights to ‘socialise’ a comprehensive Legal Aid Bill in conjunction with relevant NGOs, bar associations and/or law schools
The passing of such a law will not be an AIPJ outcome; rather, AIPJ will support the process for the development of a draft law which is inclusive and responsive to community concerns, and which is based on sound contextual and comparative analysis
If a legal aid law is passed, AIPJ will support policy dialogue in relation to its implementing regulations and budget allocation
AIPJ could also support the development and implementation of initiatives relating to legal aid more broadly, such as pro bono advice systems and paralegal movements
Activities under this outcome will include support to facilitate dialogue between the Indonesian Government and civil society organisations, including disabled peoples’ organisations, about how legal aid can be more effectively provided to women in need, people with disability and people living with HIV/AIDS
It is anticipated that this outcome will evolve over time, in particular if the Legal Aid Bill is passed by the DPR
Pending the establishment of a comprehensive state-funded legal aid system, AIPJ will also consider providing core and/or grant funding to legal aid NGOs in Indonesia
Outcome 5 Increased capacity of civil society organisations and national commissions to support Indonesian law and justice sector reform efforts
Civil society can and should be supported to engage successfully with formal government agencies while at the same time maintaining their own organisational advocacy activities
AIPJ will support the achievement of this outcome in three ways:
improving civil society’s capacity to monitor law and justice institutions and conduct analytical work;
and supporting national human rights commissions (particularly Komnas HAM and Komnas Perempuan)
AIPJ support to civil society will be administered in line with the guidelines set out at Annex 5.9
Outcome 5, Component 1: Improving civil society’s capacity to monitor law and justice institutions and conduct analytical work
The Indonesian Government has made it clear through a range of policies that the capacity of civil society organisations to conduct analytical work and monitor – including engaging in dialogue with relevant stakeholders on – access to and quality of legal services is critical to improving the supply of these services
The National Access to Justice Strategy includes amongst its strategies for legal and judicial sector reform, “strengthening community awareness and participation in the formulation and supervision of implementation of public policy”
The Strategy explicitly states that both government and non-government actors are critical to facilitating greater access to justice
AIPJ will build the capacity of civil society organisations (particularly NGOs, law schools and bar associations) in the law and justice sector to monitor the access to, and quality of, public prosecutions and court-based dispute resolution
This will be crucial to ensuring the sustainability of institutional reforms supported by AIPJ
AIPJ will consider supporting civil society organisations in the law and justice sector to:
put in place effective management and leadership strategies, including strategies which facilitate greater participation by marginalised groups in civil society organisations;
research and monitor the processing and management of anti-corruption cases by the judiciary, the AGO and the KPK, including contributing to the Indonesian Government’s monitoring and evaluation of the proposed National Strategy on Corruption Eradication;
research and monitor progress on improving access to court-based dispute resolution for marginalised groups (especially poor and vulnerable women, people with disability and people living with HIV/AIDS), to feed into monitoring and evaluation of the Supreme Court’s Strategic Plan and the National Access to Justice Strategy;
understand and promote domestic and international best practice with regard to combating corruption and promoting access to justice for women (including through gender disaggregated policy monitoring), people with disability and people living with HIV/AIDS;
conduct research and analyses, socialisation and policy dialogue on issues relating to draft laws (rancangan undang-undang)  and subnational regulations (perda) concerning human rights, women’s rights and anti-corruption;
introduce and implement robust systems within bar associations for handling public complaints and disciplining corrupt members; and
promote successful reforms made under AIPJ and other reform programs
Under AIPJt, preliminary baseline analytical work will be conducted regarding people with a disability, to assess key barriers facing their ability to access the justice system
This work will bring together key institutions to develop an approach for supporting the mainstreaming of disability and building an understanding of people with disability in the legal and justice sector in Indonesia
This work will be built on under AIPJ
Outcome 5, Component 2: Supporting national human rights commissions
Outcome 4 will involve strengthening the capacity of national human rights commissions, such as the National Human Rights Commission (Komnas HAM) and the National Commission for the Elimination of Violence Against Women (Komnas Perempuan), to play a ‘bridging’ role between civil society and the state
These organisations work at the interface between the supply of and the demand for justice, and therefore have significant potential to incorporate community aspirations into the institutional reform process – particularly in the area of human rights, where the Indonesian Government has made high-level commitments to human rights but as yet lacks capacity to respond effectively to human rights complaints from the community
Needs assessments of Komnas HAM undertaken by AusAID and UNDP,  indicate that its capacity to receive and manage human rights complaints from the community is low
This challenge is particularly acute outside Jakarta
AIPJ will therefore consider assisting Komnas HAM to strengthen the capacity of its regional offices (located in Aceh, Papua, West Sumatera, West Kalimantan and Maluku) to respond to community expectations
Assistance for these regional offices may take the form of, for example, developing strategic plans and organisational performance indicators
AIPJ will continue to work with Komnas Perempuan to develop its capacity to protect and promote the rights of women
Australia has an existing partnership with Komnas Perempuan which supports a mix of institutional capacity building, and focuses on assistance for its core activities
AIPJ’s support for Komnas Perempuan will assist efforts to access and utilise state budget funds, with the ultimate outcome of Komnas Perempuan becoming less dependent on donor funding by the end of the program
AIPJ will also focus its assistance to Komnas Perempuan on implementing recommendations from the needs assessment undertaken by UNFPA in 2008  that link most closely to the objective and outcomes of AIPJ
AIPJ will consider supporting the work of the national commissions responsible for monitoring and reporting on Indonesia’s compliance with international human rights instruments to which it is a party, and assisting relevant justice institutions to ensure such compliance, including through the review of existing legislation and the drafting of implementing legislation." 
3.2.4 Cross-cutting Issues
Human rights, anti-corruption, partnerships and performance are AIPJ cross-cutting issues
Activities funded under the five AIPJ outcomes will be expected to explicitly highlight their approach to these cross-cutting issues, and separate monitoring will be established and resourced from AIPJ funds for each cross-cutting issue that will track and report progress separately as part of the formal reporting processes
The program will be expected to respond to, and build on, opportunities for engagement in these areas
In addition to informing activities under the AIPJ outcomes, discrete activities may be funded under AIPJ in order to support the latter two cross-cutting issues (partnerships and performance)
Cross-cutting Issue 1: Human Rights (particularly women’s rights and the rights of people with disability)
One of AIPJ’s key aims will be to support Indonesia to ensure the promotion, protection, and fulfilment of the rights of the most marginalised, particularly poor and vulnerable women and people with disability
Human rights have been integrated into the majority of outcomes under AIPJ’s objective, including outcomes relating to: enhancing access to justice and legal aid for poor and marginalised groups; improving the capacity of key national human rights institutions to act as a ‘bridge’ between civil society and the state; and expanding access to legal information relating to human rights
Cross-cutting Issue 2: Anti-Corruption
Anti-corruption has been incorporated into a range of outcomes under AIPJ’s objective, including outcomes relating to: improving the capacity of prosecutorial agencies to process corruption cases (both in their own ranks and more broadly); enhancing the transparency of law and justice institutions; and increasing the capacity of civil society to monitor the availability and quality of key legal services
AIPJ’s activities in support of this cross-cutting issue will involve the judiciary, the Attorney-General’s Office, the Anti-Corruption Commission (KPK), the Ministry for Law and Justice and civil society, with the level of engagement with each depending on ongoing assessments of their relative reform momentum
Cross-cutting Issue 3: Partnerships and Policy Dialogue: To facilitate the achievement of AIPJ’s objective by enhanced partnerships and policy dialogue between Indonesian and Australian law and justice institutions
The importance of partnerships to development is recognised both in the AIP Country Strategy 2008-13 and as a specific Millennium Development Goal (Goal 8: Global Partnership)
The AIPJ design process has involved a genuine partnership between the Indonesian and Australian Governments, with a jointly led design team and jointly managed consultations
Previous Australian assistance to the Indonesian law and justice sector has also supported the development of a significant number of partnerships between Australian and Indonesian institutions, particularly between the Supreme Court of Indonesia and the Federal and Family Courts of Australia
Experience has shown that these types of partnerships have significant potential in terms of developing both technical capacity and political will in Indonesia to support necessary law and justice sector reforms
The Program Director, in conjunction with AusAID and Bappenas, will identify potential Australian and Indonesian counterpart institutions and activities to support this cross-cutting issue
Such activities could involve, for example:
continued cooperation between the Supreme Court of Indonesia and the Federal and Family Courts of Australia in relation to judicial transparency, access to justice and court leadership;
cooperation between the Indonesian Bar Association and the Law Council of Australia in relation to ‘developing a code of ethics, informing the public of their rights to lodge complaints against lawyers and rolling out… local disciplinary tribunals’; 
cooperation between the Indonesian Directorate General for Human Rights, the Australian Human Rights Commission and the Attorney-General’s Department Social Inclusion Division in relation to developing disability rights policy and efforts towards the ratification of the Convention on the Rights of Persons with Disability;
cooperation between the Indonesian National Legal Development Agency (BPHN) and the Australian Law Reform Commission to strengthen BPHN’s capacity to analyse priority reform areas in Indonesia’s law and justice sector;
cooperation between the Indonesian Legal Resource Centre, the Indonesian Directorate General for Tertiary Education  and the Council of Australian Law Deans on comprehensively assessing the needs of the Indonesian formal legal education sector;
cooperation between the Indonesian Directorate General for Legislation and the Australian AGD’s Office of Legislative Drafting and Publishing in relation to electronic publishing;
cooperation between Komnas HAM and Komnas Perempuan and the Australian Human Rights Commission (Disability Discrimination Commissioner) in relation to processing complaints by people with disability or advocating on behalf of people with disability; and/or
policy dialogue between relevant institutions on leadership, budget allocation and emerging international best practices in the law and justice sector
All partnerships will be expected to contribute to AIPJ’s objective
Where proposed partnership activities do not contribute directly to a specific AIPJ outcome, they may be funded through AIPJ’s Partnership and Emerging Issues Fund, as discussed at 4.2.4 below
The strength of the partnerships and policy dialogue supported under AIPJ will be measured according to the monitoring and evaluation framework established under AIPJ
It is expected that the Australian Federal Attorney-General’s Department will play a key role in linking Indonesian institutions with their counterpart Australian institutions
AIPJ will also consider recommendations from the Australia Indonesia Working Group on Legal Cooperation (WGLC)  on possible areas for the development of peer-to-peer relationships in the sector
Cross-cutting Issue 4: Performance: To improve the systems and capacity of key law and justice sector institutions to monitor and evaluate activities, strategies and policies
Performance is an important focus of the AIP Country Strategy 2008-13 and a major focus for the Indonesian Government as evidenced by the Jakarta Commitment on Aid Effectiveness
AIPJ’s approach to performance will involve:
relying on, supporting and strengthening the Indonesian Government’s performance systems where possible, thereby avoiding duplication and the establishment of parallel systems for performance evaluation;  and
employing best practice in relation to measurement of AIPJ’s own contribution to AIPJ’s objective, outcomes and cross-cutting issues, and ultimately the joint Indonesian Government-AIPJ long-term goal
Where possible, AIPJ will utilise survey research to measure the impact of AIPJ’s activities and to feed into program learning
This could include baseline surveys to be conducted at the commencement of AIPJ
A specific amount of funds will be reserved under AIPJ to promote improved aid effectiveness in line with the Jakarta Commitment
This fund will be used to conduct monitoring and evaluation of AIPJ’s performance and also to support the Indonesian Government in efforts to improve monitoring and evaluation mechanisms in the law and justice sector, should it request such assistance
3.2.5 Partner Organisations
In section 2.1.3 (Working with Key Justice Sector Actors) above, the range of Indonesian law and justice sector actors were categorised according to the extent to which AIPJ will seek to engage with them
Reform in this sector is dynamic and is often dependent upon the strength and commitment of key individuals within each of these organisations
AIPJ therefore needs the flexibility to support opportunities for reform as they emerge, and to re-direct resources between potential partners as their commitment and drive to reform ebbs and flows
As such, the categorisation of stakeholders undertaken above should not be seen as final
Rather, ongoing analysis and re-categorisation of stakeholders will be expected, and assessed as part of the independent AIPJ reviews
3.3 Form of Aid Proposed
3.3.1 A Flexible Program
Analysis undertaken to date and previous experience working in the sector have highlighted core areas where AIPJ can make a difference
Consequently, AIPJ will be based around core areas of activity in support of the objective and five outcomes as discussed above
At the same time, the need to remain flexible in a rapidly changing environment is clearly recognised
The reasons for adopting a flexible approach are based on a range of lessons learned about assistance to this sector, which have shown that:
in a dynamic and highly complex institutional and policy context,  Australia’s cooperation needs to remain responsive and in a position to build on existing relationships where traction for doing so exists (and to downscale activities where there is little traction);
flexibility is required in order to properly harmonise with other donors, several of which are currently planning new, large-scale activities;
the Indonesian Government has requested in several consultations that Australia’s assistance to this sector remain capable of quickly adapting to changes in reform momentum;
the law and justice sector comprises a range of disparate institutions, each of which has different financial and performance systems and priorities, meaning that there is no single financial/performance system or policy behind which AIPJ can align;
the sector is highly political and vulnerable to a range of risks that require flexibility to move assistance as priorities change; 
AIPJ’s small investment relative to the size of the sector requires that it act as a catalyst for better utilisation of Indonesian resources rather than as a supplement to those resources, which in the current context requires strategic directions to be set on an ongoing basis; and
the latest academic thinking on law and justice reform emphasises the need for donors to refrain from over-specifying end states and developing plans ex ante
Flexibility will be maintained through specific outputs that will be determined through an annual workplan (described further in section 4.2.2 below) within agreed parameters and according to agreed selection criteria
Each activity will have its own objective and a small number of outputs which will contribute to achieving the relevant AIPJ outcome
In addition, the Partnership and Emerging Issues Fund will enable the program to respond rapidly and respond to opportunities as they arise in this rapidly changing sector (see section 4.2.4)
The Fund will enable the program to respond to emerging opportunities as they arise
The facility approach of LDF was criticised for funding too wide a range of activities and lacking coherence
AIPJ will address these concerns by specifying end of program outcomes to which all activities funded under the program will be expected to contribute
Indicative activities are expected to clearly identify their contribution to the outcomes upfront
While indicative activities for the first year of this program are provided above, further activities will be developed during an annual planning process and specified in an annual workplan
Flexibility for a small range of activities in support of each outcome remains, but in order to have greater impact AIPJ will aim for a critical mass rather than the very wide range of small activities implemented under LDF
The underlying partnership principles will also ensure that leadership will come from the Australian and Indonesian Governments, and the Indonesian law reform community and other relevant stakeholders, all of whom will be active in ensuring activities align with Indonesian Government and Indonesian justice sector reform priorities – particularly through improvements to the governance arrangements under AIPJ
The model applied for the AIPJ will involve a clear set of operating principles (see below section 3.4), a coherent conceptual approach to capacity and capacity development (see below section 3.3.3) and a set of selection criteria for individual activities (see below section 4.2.3)
3.3.2 AIPJ Approach to Working in Partner Systems
The Governments of Australia and Indonesia are committed to principles included in the Paris Declaration on Aid Effectiveness (2005), the Accra Agenda for Action (2008) and the Jakarta Commitments for Aid Effectiveness (2009)
There are a number of ways in which AIPJ will be moving towards greater use of Indonesian Government systems to enhance aid effectiveness
Alignment
AIPJ will be aligned with Indonesian Government policies and strategies, including the law and justice components of the RPJMN 2010-15 and the framework set out in Part 2
As an indication of the extent of this alignment, the Indonesian Government has already drawn up four ‘good governance goals’ under its 2010 Government Work Plan (RKP) to support priorities under the RPJMN 2010-14
As described in Figure 2 below, the AIPJ objective and cross-cutting issues largely mirror these goals
The AIPJ focus is on improving the supply of quality legal services, which acknowledges and supports increased access to services and enhanced legal awareness in the community
Figure 2: Alignment of AIPJ with 2010 Indonesian Government Work Plan
This degree of alignment is likely to continue given the fact that AIPJ’s objective, outcomes and cross-cutting issues are closely aligned with three of the six “priority focus areas” articulated in the “Law and Machinery of State” chapter in the RPJMN 2010-14:
improving the effectiveness of legislation;
improving the performance of legal sector institutions;
improving respect for human rights;
improving the implementation of good governance, free from corruption, collusion and nepotism;
improving the quality of public services; and
improving the capacity, accountability and performance of the bureaucracy
AIPJ’s focus on support for improving the capacity of courts, prosecutors and human rights institutions to deliver quality legal services and information, while being a worthy goal in and of itself, is only one of many improvements required in the sector in order to improve the rule of law and protection of human rights
Other areas of the law and justice sector will not fall within the scope of AIPJ, but may still receive assistance from other Australian Government agencies,  other donors  or internal Indonesian Government reform programs
This is in response to the lessons learned from previous programs that assistance to the sector should not be spread too thinly, should build on existing relationships and success stories, and should involve mutually reinforcing outcomes
Other ways of working in partner systems
Other ways AIPJ will move Australian assistance in this sector towards greater use of Indonesian Government systems include:
a) Greater ownership by the Indonesian Government: 
AIPJ has been designed in partnership with the Indonesian Government
The Indonesian Government has been highly involved in the development of the concept and design for AIPJ, including joint Australian and Indonesian Government consultations with in-country stakeholders to inform the design
The governance arrangements for AIPJ also reflect an increased level of ownership by the Indonesian Government, for example the Partnership Board is co-chaired by and comprises key Indonesian Government counterparts – in contrast to the Advisory Board under LDF which comprised external experts
b) Being on budget (but off treasury): AIPJ will be registered in the Indonesian Government’s blue book and green book for development programs
Counterparts will be required to report AIPJ funding through the List of Budget Implementation process (DIPA)
c) Focus on performance and strengthening Indonesian Government performance evaluation systems: Working in partner systems includes using and strengthening local evaluation, procurement, and audit systems
AIPJ will focus on working through and strengthening the Indonesian Government’s performance evaluation systems
AIPJ will evaluate and if necessary provide assistance to strengthen the Indonesian Government’s performance evaluation systems, beginning with assisting the Indonesian Government to establish and implement monitoring and evaluation systems for the key strategies it will support
d) Working with Indonesia’s civil society to support reforms to the law and justice sector, including in ways which empower rather than weaken the long-term sustainability of civil society organisations
3.3.3 AIPJ Approach to Capacity Development
In order to achieve AIPJ’s objective, activities will need to address organisation and structural constraints to improved performance, but also human capacity constraints
In the justice sector in Indonesia, it is already well documented that many of the constraints on effectiveness relate to weak management capacity, although technical capacity also remains an issue
As such, for any desired service delivery improvement, AIPJ will need to critically assess the human resource constraints within the context of overall institutional effectiveness, and develop a long-term approach to address these constraints
Addressing human capacity needs is considered a key factor in achieving greater institutional effectiveness
It will not be feasible (or appropriate) to conduct comprehensive capacity assessments for all AIPJ partners
However, in engaging with each partner, AIPJ will need to consider at least the following issues: 
Area Questions
Mandate Does the organisation have the perceived and actual mandate to perform the functions being supported? Which external stakeholders influence the legitimacy of that mandate?
A strong mandate is essential if the organisation is to generate effective results
It is a prerequisite for the provision of support, as there is typically little that an external donor can do to generate this mandate
Leadership Does the organisation have leadership that drives reform? Does the leadership support the specific area of reform or improvement being targeted?
Technical capacity What technical capacity is required to deliver the desired performance improvements? What skills do individuals need to develop? What systems, procedures or policies does the organisation need? What strengths already exist that can be further built on?
Enabling management capacity What underlying management issues currently constrain the effective performance of the functions being examined? Consider in particular: human resource management practices (including staff supervision), financial management practices, or general management practices (such as planning or performance management)
What strengths already exist that can be further built on?
Incentives What incentives can be leveraged by AIPJ to reinforce capacity development? Who provides those incentives? How can AIPJ work with them to maximize the effect of those incentives?
Based on the above analysis, a decision will need to be made about whether the proposed performance improvements are feasible, and, if so, a capacity development strategy should be adopted for each partner agency that:
describes the performance improvements to be achieved;
identifies the nature of the capacity constraints to be addressed in order to achieve those performance improvements – both immediate and underlying;
defines what ‘improved capacity’ would look like (which will subsequently be used for monitoring and evaluation); and
identifies which strategies will be used to deliver improved performance – incorporating both the responsibilities of AIPJ and of the partner agency
AIPJ should not support isolated capacity development activities such as training or study tours that are not integrated into a broader capacity development approach
Evidence suggests that the best outcomes are achieved when capacity development for individuals and the organisation are used in combination
3.3.4 Types of Assistance
Consistent with the approach outlined above, AIPJ will not invest in infrastructure on behalf of Indonesian partners
AIPJ will be open to all other forms of assistance permitted under the Australia Indonesia Partnership, including:
support for peer-to-peer relationships between Indonesian agencies and counterparts;
grants to civil society for dissemination, monitoring and other activities;
analysis and diagnostics, particularly those undertaken by Indonesian organisations;
core funding for reform offices, human rights commissions and other key organisations;
one-off and/or ongoing technical assistance to state and non-state institutions, particularly from Indonesians or persons with a long-term commitment to working in Indonesia; and
training, particularly by Indonesian organisations and where there is evidence of sustainability
3.4 Operating Principles
When considering activity proposals, the AIPJ Partnership Board (as discussed in Part 4 below) must ensure that all AIPJ funds are administered in accordance with the following principles:
Partnership
In a broad sense, AIPJ is a partnership insofar as it reflects both Australian and Indonesian Government priorities and includes various joint decision-making bodies, as described in Part 4 below
The partnership principle reflects the fact that cooperation is most effective when it takes place in the context of a sound relationship; AIPJ is not simply about the provision of technical assistance – it is about developing the relationships that will give rise to effective cooperation over the long-term
This will require the Australian Government to play a key role in the governance of AIPJ and for AusAID in particular to be actively engaged in its delivery
The development of long-term relationships between Australian and Indonesian government agencies provides a strong basis for policy dialogue on justice sector issues, as well as a useful framework for capacity development
Effective Demand 
As has already been discussed, one of the central features of this design is the inclusion of an objective to build demand for quality legal services
At the operational level, the term ‘effective demand’ will be used to refer to demand from agencies for assistance through the AIPJ
Facilities are most effective when their programming is driven by partner demand
However, expressed demand is different from, and less important than, effective demand
To be effective, requests for assistance from partner organisations need to align with AIPJ’s objectives, be accompanied by the capacity of the partner organisation to actually deliver the proposed benefits and be responsive to the needs of the requesting organisation rather than the individuals working for it
AIPJ needs to address the concept of effective demand through:
communicating information about AIPJ’s objectives clearly amongst stakeholders;
ensuring all partners have the capacity to deliver sustainable benefits from AIPJ-funded activities;
promoting demand by communicating information about successes; and
understanding the incentives that influence different actors at both individual and institutional levels, and leveraging these incentives to encourage constructive engagement with AIPJ
Critical Mass
AIPJ should attempt to maintain a balance between assisting a range of different organisations and ensuring that its assistance does not become ‘drops in the ocean’ by adhering to the principle of ‘critical mass’
This means that, prior to funding any activity, a preliminary analysis will be undertaken by the Program Director (or sub-contractor), to understand the full range of elements that are critical to its success and make available this analysis to the Partnership Board for consideration in assessing proposed activities
If the minimum level of funding needed to address these elements comprehensively is greater than the amount to be allocated to the proposed activity, the activity should not proceed
Incremental Engagement 
‘Incremental engagement’ involves providing an initial level of support and then expanding this based on success
The intention is to avoid being over-ambitious and to build gradually on demonstrated success
This principle also has a useful incentivising effect – when partners understand that continued or additional support is contingent on success, there is a greater likelihood of achieving that success
An important part of giving meaningful effect to this principle will be to determine the most effective sequencing for activities
Use of Indonesian Expertise
AIPJ will look to prioritise use of Indonesian expertise in all program activities
This reflects recognition that Indonesia holds a wealth of technical knowledge and expertise that can be both utilised and supported more effectively by donors
3.5 Sustainability
The AIPJ design contains a number of specific strategies to maximize the likelihood of sustainability
AIPJ’s objective captures both supply- and demand-side factors influencing the accessibility and quality of legal services; the outcomes are intended to be mutually reinforcing
AIPJ’s focus on both state and civil society actors means that its activities have the potential to generate longer term benefits beyond their immediate results
Second, AIPJ’s approach to capacity development provides a strong basis for sustainability
It aims to:
ensure that capacity development activities are based on sound analysis and are appropriate to their institutional context; and
adopt strategic, multi-faceted approaches to capacity development, rather than ad hoc, one-off interventions
Third, the Operating Principles enunciated at Section 3.4 above all seek to maximize sustainability:
Partnership recognises that to be sustainable, AIPJ must be implemented within the context of Indonesian Government priorities, and on the basis of strong institutional relationships between Indonesian and Australian law and justice sector institutions;
Effective demand recognises that change is most effective when it is driven by informed demand from partners who have the commitment and capacity to deliver on the reform agenda;
Critical mass recognises that the minimum level of support required for any desired change to be sustained must be properly understood; and
The approach of incremental engagement will encourage AIPJ to build on activities that have successfully leveraged Indonesian resources, thereby ensuring sustainable outcomes
Finally, AIPJ’s governance and management arrangements support sustainability through their emphasis on joint decision-making
This provides a mechanism for ensuring ongoing alignment to Indonesian Government priorities, and for adjusting to changes in the implementation environment
3.6 Timing and budgetary issues
AIPJ will commence in late 2010 and will continue for five years
It is estimated that approximately 10 per cent of the overall budget will be dedicated to the Performance cross-cutting issue, which will involve performance evaluation as well as funds for strengthening Indonesian performance systems upon request from the Indonesian Government
Up to up to ten per cent of the overall budget may be spent on Partnership and Emerging Issues activities
AIPJ expects to be ‘on budget’, which means it will be registered in the Indonesian Government’s green and blue books of annual and five-year development programs and that Indonesian Government partners will register AIPJ commitments alongside the state budget
AIPJ will therefore have a DIPA number and will be recorded in the DIPA
3.7 Coordination and Coherence with Existing Australian and Other Donor/Multilateral Programs
3.7.1 Synergies with Other AusAID-funded Programs
There are a number of programs being funded under the AIP and AusAID’s East Asia Regional Program which have the potential to support and/or be strengthened by AIPJ
A list of these programs, and their synergies with AIPJ, is included at Annex 5.7
3.7.2 Relationship to other Government of Australia Assistance to Indonesia’s Law & Justice Sector
In addition to AusAID, a range of other Australian Government agencies and departments administer ODA to Indonesia’s law and justice sector
These initiatives include, for example, a $1.3 million two-year program of assistance managed by DFAT in conjunction with The Asia Foundation to support improvements to the administration of corrective services in Indonesia
AIPJ’s design minimises the risk of overlap, however, this is in the absence of a whole-of-government of Australia framework and mechanism for coordinating this assistance
AusAID is currently working with the AGD  and Department of Foreign Affairs and Trade (DFAT) to develop an Australian Government Framework for Assistance to Indonesia’s Law and Justice Sector
Other relevant agencies, such as the AFP, DIAC and Customs and Border Security, have also been invited to participate in the development of this framework
It is also envisaged that the Federal Court of Australia and the Family Court of Australia will be involved in this process
The proposed whole-of-government framework is expected to assist agencies and departments ODA initiatives to provide complementary assistance to Indonesia’s law and justice sector by:
articulating the overarching goals and core business of each agency in providing assistance to Indonesia’s law and justice sector
establishing a coordination mechanism to ensure that there is no overlap between the activities undertaken by relevant Australian agencies in Indonesia and, increasingly, that there are clear synergies between such activities;
establishing a mechanism for reporting to the Indonesian Government on Australian ODA to Indonesia’s law and justice sector; and
reiterating support for the Jakarta Commitment, particularly an undertaking by Australian Government agencies assisting Indonesia’s law and justice sector to align with relevant Indonesian Government policy priorities and harmonise with other donors in the sector
3.7.3 Harmonisation with Other Donor & Multilateral Programs
There have been, and still are, a large number of donor supported programs aimed at supporting Indonesia’s law and justice sector
It is therefore imperative that AIPJ assistance be delivered in close collaboration with these donor partners
In particular, many donors are involved in providing support to the courts and to the Anti-Corruption Commission (KPK)
The Indonesian Government’s forthcoming National Medium-Term Development Plan (RPJMN) may provide a basis for facilitating stronger Bappenas-led coordination of donor activities in the sector
In the meantime current informal donor coordination mechanisms should be sufficient to ensure there is not duplication of assistance and opportunities for strengthening collaboration identified
Key donor partners will include (but not be limited to): USAID, IMF (through their National Legal Reform Program), the EC (focused on supply-side assistance) and the World Bank (through its Justice for the Poor Program) and UNDP (focused on demand-side assistance)
IMPLEMENTATION ARRANGEMENTS
implementation arrangements reflect the following shared commitments and principles including: joint decision-making, increasing GoI leadership and ownership of AIPJ supported work; transitioning towards use of GoI systems over the life of the Partnership, including monitoring and evaluation and procurement systems; focussed engagement rather than attempts to be all-encompassing; and preference for using Indonesian national consultants and service providers where possible
4.1 Governance and Management Arrangements
Figure 1 below describes the basic governance and management structure for AIPJ
Figure 1: AIPJ governance and management structure
Ideally AIPJ would be overseen by a GoI led sectoral coordinating mechanism or overarching strategic reform plan that discusses sectoral needs, priorities and coordinates donor assistance
Such a mechanism or plan does not currently exist
AIPJ will encourage and support GoI to establish such a mechanism during the period of the program
If such a mechanism emerged, AIPJ’s oversight governance arrangements would need to be revised
4.1.1 The Australia Indonesia Partnership for Justice Board (Partnership Board)
An AIPJ Partnership Board will be co-chaired by AusAID’s Minister-Counsellor and a senior representative of Bappenas
The Partnership Board will comprise ex officio representatives of the Indonesian judiciary, GoI,  GoA (including Attorney-General’s Department and DFAT), the Indonesian National Human Rights Commissions and Indonesian civil society
It will be responsible for providing overall strategic direction for the AIPJ, including by considering and providing comments on the draft Annual Work Plan of activities
It will consider the balance of annual funding based on a review of institutional progress and commitment towards AIPJ’s objective
The Partnership Board will meet annually to assess the progress of AIPJ, based on the annual program progress reports provided by the Program Director
The co-Chairs of the Board will actively encourage its members to use the findings in these reports as a basis for providing advice on the future direction of AIPJ
The primary purpose of the Partnership Board meetings is intended to be the opportunity for frank discussions about the political dynamics and current reform directions in the Indonesian law and justice sector to inform the direction of AIPJ
Documentation provided to members of the Partnership Board will be brief (unless more detailed documentation has been specifically requested) and provided in both English and Bahasa Indonesia, with proceedings also being conducted simultaneously in English and Bahasa Indonesia where possible
While strategic advice around the majority of program priorities, directions and activities will be provided in these formal meetings, it is expected that decisions around complementary activities can and will be made by AusAID, in consultation with Bappenas, outside of the formal sessions
4.1.2 Australia Indonesia Partnership for Justice Working Committee (Working Committee)
The AIPJ Working Committee will provide key stakeholder input to the Annual Work Plan before the annual meeting of the Partnership Board
The Working Committee will be co-chaired by Bappenas and AusAID, and will be responsible for key decisions relating to the management and implementation of AIPJ
The Working Committee will formally meet twice a year: three weeks after the annual Partnership Board meeting to endorse the Annual Work Plan (following AusAID’s approval and Bappenas’ concurrence); and six months later to review and endorse the program progress report
4.1.3 GoI Managing Agency
Bappenas has been a key partner in the development of AIPJ and will be the Managing Agency representing GoI, including as the Joint Signatory of the AIPJ Subsidiary Arrangement and Co-Chair of the Partnership Board
Although Bappenas is not a law and justice sector institution, it will play a key facilitation and coordination role for Australia’s engagement with Indonesia’s law and justice institutions given its role to coordinate ODA
4.1.4 GoA Managing Agency
AusAID will be AIPJ’s Managing Agency on behalf of GoA
AusAID will play an active role in the partnership, co-chairing the Partnership Board and being a decision-maker on the Working Committee
AusAID will have the sole authority to make final approvals of AIPJ spending, but will do so with Bappenas’ concurrence
To enhance AusAID’s ability to facilitate the development of genuine partnerships between Indonesian and Australian law and justice actors, AIPJ’s Program Director will be directly engaged by AusAID
The Program Director will be responsible for managing the strategic direction and overseeing the implementation of the AIPJ
Terms of Reference for the Program Director are attached as Annex 5.11
4.1.5 Implementation Service Provider
An Implementation Service Provider (ISP) will be appointed by AusAID following a competitive process
On most program matters, the AIPJ ISP will report to the Program Director and be responsible for providing direct assistance to the Program Director in order to facilitate his/her management of the AIPJ implementation on behalf of AusAID
The ISP will be responsible for the day-to-day management of ISP staff and the technical assistance personnel that it recruits
The ISP will be responsible for its obligations under its contract with AusAID including, among other things, the provision of logistics, secretarial and administrative support, the recruitment of staff and technical assistants, financial management, procurement, secretariat services for the Partnership Board, monitoring and reporting to AusAID and any other services necessary to support the Program Director’s management and implementation of AIPJ
The ISP will support the Program Director to develop the Draft Annual Work Plan, including detailed costed activity proposals for submission and endorsement by the Partnership Board
For approval of out-of-cycle activity proposals, the Program Director and ISP must seek Bappenas endorsement and submit proposals to AusAID for approval at the appropriate level
The ISP will be facilitative in nature, responding to the priorities and directions of GoA and GoI
4.1.6 Technical Support Pool
The ISP will also be responsible for coordinating inputs of a Technical Support Pool (TSP) which will be built up and maintained over the life of the Partnership
The TSP will comprise a selection of national and international specialists in key areas including: gender analysis, capacity development, monitoring and evaluation, human rights, people with disability (particularly Indonesian people with a disability) and other technical specialist areas identified over the life of the Partnership
These specialists will be drawn upon at relatively short notice as required by AusAID, the ISP and AIPJ partners, and preferably will be given repeat roles reflecting the value of continuity in ongoing relationships for effective capacity development
TSP members should be selected on the basis of specialist skills; the extent to which they will be based in Indonesia for the duration of AIPJ (and, where relevant, beyond); their openness to learning; and their capacity to facilitate long-term partnerships between Australia and Indonesia
There will be a strong focus on utilising Indonesian expertise, where appropriate
4.2 Implementation Approach
Program implementation will be based on an activity cycle approach that will be described in detail in the Operations Handbook to be developed by the ISP
The ISP will be responsible for managing the activity cycle
As a general guide, the cycle will have the following characteristics
4.2.1 Program Planning and Priority Setting
This design sets out core program objectives that the program will look to achieve
These objectives will form the criteria from which the Annual Work Plan and planned activities will be developed
Within the framework of these outcomes, the Partnership Board will provide further guidance around annual program planning and priority setting through its annual meetings
It is anticipated that analysis and recommendations flowing from the six month and annual Program Progress Reports will also be considered by the Partnership Board in setting and reaffirming these priorities
4.2.2 Annual Work Plan
The Program Director, together with the ISP, will be responsible for developing a consolidated Annual Work Plan that seeks to progress change against AIPJ’s objective
The forward work programs will align with GoI planning and implementation schedules and therefore capitalise on opportunities and complementarities provided by planning alongside GoI program cycles (such as leveraging on national budget and planning priorities and being able to ‘complement’ GoI program activities in AIPJ priority areas if the national budget is not sufficient for this purpose)
The Draft Annual Work Plan (i.e. the Work Plan prior to final approval) will comprise activities developed by proposing agencies with support from the Program Director and the ISP (namely, drawing on design, gender and M&E expertise), in accordance with the activity selection criteria described below (section 4.2.3)
It is expected that all significant proposed activities will be developed using gender analysis and have meaningful M&E/performance indicators
All proposals will need to adopt approaches consistent with the AIPJ’s operating principles
Furthermore:
If the activity proposed is the first activity under AIPJ for a given institution, it must be accompanied by a capacity assessment and capacity development plan (as described in section 3.3.3 on AIPJ’s approach to capacity development) before it can be endorsed by the Partnership Board
If the activity is not the first AIPJ activity for a given institution, the proposal must demonstrate consistency with the principle of incremental engagement, and must also include updating (as necessary) the institution’s capacity development plan
The Annual Work Plan will give conscious consideration to facilitating Government to Government engagement
It will also specifically include activities dedicated to supporting monitoring and evaluation program objectives described at 4.4 (Monitoring and Evaluation Approach)
An indicative target of 10 per cent of program funding should be used as a guide to strengthen GoI monitoring and evaluation systems and monitor and evaluate AIPJ itself (as described at 4.4 Monitoring and Evaluation Approach)
The Work Plan will also look to analyse and strengthen GoI systems, particularly those relating to M&E
Where possible, this should result in greater use of GoI systems during AIPJ and through any successor programs in this sector
The Draft Annual Work Plan will be presented to the AIPJ Partnership Board for consultation and discussion
Following the Partnership Board meeting, the Annual Work Plan will go to the Working Committee for endorsement
4.2.3 Selection Criteria for activities
The following criteria will be applied by the Program Director in assessing activities that will be presented to the Partnership Board and Working Committee on an annual basis: 
Mandatory Criteria
a) demonstrates alignment with the priorities of Indonesia’s executive government and judiciary;
b) is based on genuine demand from relevant Indonesian stakeholders;
c) supports the achievement of the AIPJ Medium Term Goal;
d) makes a direct contribution to AIPJ’s objective or a cross-cutting issue;
e) complies with the AIPJ Operating Principles, as outlined in Part 3, including being capable of demonstrating sustainable impacts beyond AIPJ;
f) applies AIPJ’s approach to capacity development, as described in Part 3 (where appropriate);
g) has a well-defined and measurable activity-level objective (a statement about the expected change at the end of the activity);
h) has a number of well-defined and practical output-level objectives (statements about what the activity will actually deliver within the life of the activity);
i) considers the roles of women and men in decision-making and the different impact of activities on men and women;
j) recognises and responds to the differential roles and responsibilities of men and women and describes the expected participation of and benefits to men and women;
k) complies with the policies outlined in Part 4, including those in relation to environmental sustainability;
l) includes an analysis of risks to successful implementation and identification of strategies to mitigate and manage risks as appropriate to the context; and
m) includes a set of performance indicators against each output and the overall objective which will provide valid and reliable sources of information for monitoring
Desirable Criteria
n) uses and/or strengthens Indonesian Government systems, particularly monitoring and evaluation systems;
o) builds relationships between Indonesian and Australian law and justice sector institutions and/or has been developed in consultation with relevant Indonesian and Australian stakeholders;
p) supports the objectives of other AIPJ activities; and
q) supports the objectives of other AusAID-funded initiatives, such as those relating to decentralised governance
In addition to complying with the above criteria, proposed activities which involve overseas visits will also require:
o the delegation to produce a clear terms of reference in advance of the visit, stating the reasons for the visit and the expected outcomes;
o the delegation to produce and publish a brief online report (1-2 pages) describing the visit and possible outcomes; and
o the relevant organisation(s) to demonstrate transparent processes for selecting members of the delegation
4.2.4 Partnership and Emerging Issues Fund
A Partnership and Emerging Issues Fund of up to ten per cent of AIPJ funds will be created
This Fund recognises that unforseen opportunities may not always fit neatly under the existing workplan
This Fund will allow the program flexibility, while ensuring that funding is not diverted from core activities
It is envisaged that the Fund will support in particular the establishment and development of partnerships between Australian and Indonesian law and justice sector institutions, and allow the program to support emerging reform opportunities
Funding proposals will be shortlisted by the Program Director and considered by the Working Committee on a quarterly basis
All Australian and Indonesian law and justice institutions – both state and non-state – will be permitted to submit pro-forma funding applications
Applications will be assessed on the basis of their alignment with Indonesian and Australian Government priorities, and their potential for sustainability following the conclusion of AIPJ
The management of approved activities will be split between AusAID, the Program Director and ISP, depending on whether the implementer is an Australian Government agency or not
Achievements of activities under the Fund will be monitored separately from the AIPJ as a whole, reflecting the different aims of the fund
The strength of any partnerships supported by the Partnerships and Emerging Issues Fund will be measured as part of monitoring of the partnership cross-cutting issue
4.2.5 Work Plan Implementation
Once the Annual Work Plan is approved, the ISP will recruit and engage service providers, and monitor implementation, including providing technical or strategic oversight where necessary
The ISP will develop and implement the work plan under the direction of the Program Director
The ISP will be reimbursed for costs including, but not limited to, the costs of technical assistance through the TSP and any other required technical assistance, as well as activities approved under the AIPJ Annual Plan, costs related to the Working Committee and the Partnership Board, grant funds for NGOs (in accordance with agreed guidelines), funds for activities identified and supported under the Partnership and Emerging Issues Fund and funds for the performance monitoring component of the AIPJ
The ISP will develop financial management guidelines as part of an AIPJ Operations Manual to be approved by AusAID which will stipulate reporting arrangements
AusAID may provide funding to support other donor programs if agreed by the Partnership Board, and if the other donor financial procedures allow
4.2.6 Work Plan Monitoring and Review
The ISP will monitor the progress of activities and their achievements under the direction of the Program Director
At a minimum, an analysis of their achievements will be conducted following their completion
Depending on the size, scope and significance of the activities, the ISP may undertake more in-depth analysis of activity outcomes
The objectives of such analysis should be captured in progress reporting to inform analysis about overall progress toward outcomes and AIPJ’s objective, as well as to inform decisions about future strategic direction
A consolidated report of achievements and issues will be provided as part of the six-monthly and annual progress reports to the Partnership Board, and the Working Committee
4.3 Partnership Review and Reporting Requirements 
Reporting and review requirements for AIPJ include the components outlined below
4.3.1 AIPJ Inception Report
An Inception Report is to be prepared for the Program Director by the ISP three months after the commencement of AIPJ for approval by AusAID
The Inception Report will report on the early establishment phase and draft the first work plan
When the ISP is mobilised it will determine the period of the first Annual Work Plan that should align with GoI planning processes
The Inception Report will be accompanied by the following:
a) An Operations Handbook that will outline the management, financial management, procurement and other processes and issues required for AIPJ operations
Financial management guidelines, development of the Technical Support Pool, and the selection criteria for activities will be included as part of the Operations Handbook
b) A Preliminary Work Plan that will outline the activities in the period while the first Annual Workplan is being developed to align with GoI processes
c) An M&E Framework for the life of the program
d) A Gender Strategy and Action Plan for the AIPJ that will be updated annually by a member of the TSP with specific gender expertise
e) A Capacity Development Strategy to be updated annually by a member of the TSP with specific capacity development expertise
f) A Communications and Partnerships Strategy that will outline how AIPJ will communicate with stakeholders (both state and non-state) and the general public (in both Indonesia and Australia) on AIPJ implementation
The Communications and Partnership Strategy will be reviewed annually
It will describe how the ISP will engage with AusAID and Bappenas, and other government stakeholders on ongoing management and implementation issues
This will be drafted in consultation with the Program Director and AusAID’s Public Diplomacy team in Jakarta
See 4.7 below for further information
4.3.2 AIPJ Annual Work Plans
The ISP will, under the direction of the Program Director, prepare a Draft Annual Work Plan for submission to the Partnership Board every year
The Draft Annual Work Plan will:
set out the strategic direction for AIPJ for the coming year under AIPJ’s objective;
articulate the approach and strategies to address cross-cutting and policy issues over the coming 12 month period; 
provide indicative activities against the outcomes; 
provide an indicative budget breakdown against the outcomes; 
set out how the Program will report against the M&E framework, as well as actions that will be taken to improve M&E over the forthcoming period; 
set out how the Program is monitoring and addressing key risks identified in the risk management framework; and
provide an environmental analysis specific to the outcomes and proposed activities that addresses any constraints
The Partnership Board will either make recommendations for amendment or endorse the Annual Work Plan
4.3.3 AIPJ Program Progress Reports
Six month and annual program progress reports will be jointly developed by the Program Director and the ISP, together with inputs from the TSP and will be submitted to the Working Committee and Partnership Board for review
Information arising from the M&E framework will form the basis for these reports
These progress reports will help AusAID meet Quality at Implementation reporting requirements and will contain at least the following:
a) An update on the operating context i.e., constraints or opportunities the program is working within/with and how the program is managing any actual or potential risks, particularly those outlined in the risk management framework;
b) Implementation progress: including updates on each outcome, broken down by activities;
c) Key Results: analysis on how program activities are contributing, or otherwise, to AIPJ’s objective and broader program outcomes; including distillation of the key results achieved in the program period;
d) Report on use and effectiveness of M&E framework, together with recommendations for M&E framework improvements;
e) Updates on progress against broader program strategies and plans such as gender, capacity building, and communication;
f) An assessment of the effectiveness of coordination and oversight mechanisms and recommendations for improvement;
g) Recommendations for program improvement, broader sharing of lessons learned/progress, and ways to achieve broader program impacts that may not be captured in other ways through the program; and
h) A financial report
4.3.4 Assessment of Strategic Engagement
AusAID, through its democratic governance advisor, will conduct a six-monthly review of the progress of the AIPJ in the broader sectoral context
This will be conducted in parallel with the bi-annual progress report for the Working Committee, and the annual progress report for the Partnership Board
4.3.5 Independent AIPJ Reviews
Independent Reviews will take place over the life of the program
It is envisaged that the first review be conducted two years into the AIPJ, with a second independent review to take place two years following that
A team comprised of independent reviewers and a representative from AusAID and Bappenas will conduct these reviews
Where possible this should align with any reviews planned of key GoI policies or strategies
They will look at the efficiency and effectiveness of the implementation, management and governance arrangements for AIPJ
They will also undertake a review of the content and implementation of the Gender and Capacity Development Strategies developed for AIPJ
4.3.6 Activity Completion Report
An Activity Completion Report will be prepared by the ISP prior to the end of AIPJ in accordance with stipulated guidelines
4.4 Monitoring and Evaluation Approach - Summary
This section provides a summary of a more detailed approach to monitoring and evaluation under AIPJ given at Annex 5.8
The purpose of this section is to identify key principles and issues that the full monitoring and evaluation framework will be expected to address when it is developed during the inception phase of AIPJ
Guiding principles for monitoring and evaluation activities will include:
working with, and through, Indonesian systems and building on those systems where appropriate;
all data collected will be gender disaggregated, and pay special attention to people with a disability;
information collected will be reported in a way that can be directly used by managers at the operational, forward planning and strategic levels to inform ongoing decision-making; and
regular reviews of the MEF itself to ensure that it incorporates best practice developments of monitoring in the legal sector, and ensure it is meeting the needs of stakeholders
The Monitoring and Evaluation Framework (MEF) developed during the inception phase will specify, as a minimum, performance expectations, means of verification, stakeholders who will use the information and indicators to track performance
It will also track follow-up responses and actions to issues raised under the following headings:
ISP performance in meeting the requirements set out in its Scope of Services;
Governance arrangements and their effectiveness;
Activity delivery that is in accordance with the Operations Handbook, and, in particular, that meets the needs of stakeholders;
Assessment of progress against the AIPJ outcomes and AIPJ’s objective, that takes into account the broader context in which the AIPJ is operating; and
Cross-cutting Issues – human rights, anti-corruption, performance management and partnerships
At the outcome level, M&E will address both capacity and performance
As has been discussed above, a key focus on AIPJ is the development of the capacity of law and justice institutions to deliver services to the community
AIPJ is expected to include the strong engagement of several Australian Government agencies
During the development of the MEF, the provider will engage with the relevant Australian Government agencies to discuss appropriate ways of capturing their contribution to AIPJ
During the inception phase, the Monitoring & Evaluation Specialist will be expected to conduct an evaluability assessment of the AIPJ with full stakeholder participation
This assessment will include a review of the program logic and confirm a shared understanding of end-of-program outcomes
It will also examine potential data sources, particularly those in partner government systems, and areas where AIPJ should conduct further baseline analytical work (including through survey-based data generation), building on that already proposed under AIPJt
It is expected that a core means of tracking the performance of AIPJ will be through the use of an expert survey analysing public perceptions in areas that AIPJ is directly seeking to influence
The development of the initial baseline survey would be one of the first tasks of the AIPJ management team
Results would be expected to measure the impact of AIPJ’s activities and feed into program learning
4.5 Procurement and Financial Management Arrangements
AusAID will conduct a public and open tender in accordance with the Commonwealth Procurement Guidelines to appoint an ISP to mange the implementation of AIPJ in accordance with this design document and the proposed Scope of Services
The ISP tender will be open to any potential bidder including private contractors, and international not-for-profit organisations
The ISP will be responsible for sub-contracting companies and individual personnel for the implementation of activities, providing grants to CSOs, and procuring goods and services for the realisation of the AIPJ
The ISP must implement procurement procedures that are consistent with the principles of the Commonwealth Procurement Guidelines
As mentioned above, the ISP must prepare an Operations Handbook which will set out, among other things, the financial management and procurement processes applicable to AIPJ, including management of Activity costs
Grants to CSOs must comply with the GoA and GoI requirements that will also be detailed in the Operations Handbook
4.6 Overarching Policy Issues
The implementation of AIPJ will be informed by a number of overarching principles which GoA has put in place to ensure the quality and effectiveness of the aid program
In all cases, these principles are consistent with GoI policy
These overarching principles concern:
gender equality;
anti-corruption;
sub-national governance;
disability-inclusive development;
combating transnational crime;
disaster risk reduction;
environmental sustainability (including compliance with Australia’s Environment Protection & Biodiversity Conservation Act 1999); and
child protection
4.6.1 Gender Equality
The extent to which the Indonesian law and justice sector can deliver just outcomes to both women and men will play a critical role in determining the extent to which AIPJ’s long-term, medium-term and end of partnership goals can be met
Indonesia has put in place a comprehensive range of constitutional, legal and policy provisions for the advancement of gender equality
These provisions, together with consultations which the AIPJ Design Team, the LDF Gender Review Team and the AusAID Legal Sector Analysis Team have conducted with a range of women’s organisations and women and men in legal institutions,  will shape AIPJ’s implementation with regard to gender
In addition to the incorporation of gender equality into AIPJ’s objective and women’s rights as a cross-cutting issue to ensure sufficient funds go to progressing gender related activities, the implementation of AIPJ will strengthen gender equality by:
including a gender specialist in the TSP to ensure all significant proposed activities will be developed using gender analysis and have meaningful M&E indicators;
developing a Gender Strategy and Action Plan as part of the Inception Report that is reviewed annually; 
undertaking a gender review in conjunction with the AIPJ Mid Term Review; and
program progress reports being required to report on gender equality measures undertaken during implementation
4.6.2 Anti-corruption
Assisting Indonesia to combat corruption is central to the AIPJ
As discussed above, the design of AIPJ has been informed by the AIP Anti-Corruption for Development Plan 2008-13 and GoA’s Tackling Corruption for Development and Growth policy
AIPJ will support the implementation of these policies by:
specifying outcomes under the AIPJ objective which align with key GoI anti-corruption policies which over the long-term are likely to contribute to the reduction of corruption in Indonesia;
seeking regular input from the Partnership Board on how Australia can best support the continuation of Indonesia’s anti-corruption drive;
funding activities that directly support the abovementioned Plan’s Enforcement Pillar, through improving investigation and prosecution of corruption crimes and strengthening enforcement institutions such as the KPK and AGO; and
ensuring that safeguards have been put in place to detect and address corruption in the use of GoA funding to Indonesia’s law and justice sector
4.6.3 Sub-national Governance
AIPJ will ensure it is coherent with the key principles in the Sub-National Level Engagement in Indonesia – A Framework for AusAID 2010-15 to guide programming decisions including focusing on service delivery, maintaining flexibility and ensuring coherence between initiatives operating at the sub-national level
Consistent with these principles, AIPJ will concentrate foremost on improving the delivery of legal services to communities, namely by strengthening the capacity of law and justice institutions to supply high quality services and of communities to demand the provision of appropriate services
4.6.4 Disability-inclusive Development
AIPJ has been developed in line with the principles espoused in Development for All: Towards a Disability-inclusive Australian Aid Program 2009-2014
AIPJ will be one of the AusAID Indonesia Program’s flagship initiatives in support of Development for All outcome 1 
– improved quality of life for people with disability and Guiding Principle 2 
– recognising, respecting and promoting the rights of people with disability 
– as AIPJ will seek to: improve awareness of rights of people with disability to service providers, courts, judiciary, NGOs, the wider community and people with disability themselves; 
and enable better access for people with disability to mechanisms to complain and seek redress when rights are breached, and courts and human rights commissions strengthened to provide better access and to deal with complaints
AIPJ will also be directed by the other guiding principles in Development for All, particularly around promoting active participation of people with disability, acknowledging the interaction of gender and disability, and strengthening people-to-people links and partnerships involving people with disability
4.6.5 HIV
AIPJ will support the Australian Government’s international development strategy for HIV, Intensifying the Response: Halting the Spread (2009)
As is made clear in the strategy, discrimination against people living with HIV undermines the public health efforts that encourage people to undergo HIV testing
This phenomenon is one of the key constraints to halting the spread of HIV in Indonesia
Activities under AIPJ outcomes 1 (concerning access to courts and legal aid), 3 (concerning access to legal information) and 4 (concerning civil society capacity) will support efforts of the Indonesian judiciary, national human rights commissions and civil society to combat discrimination within their own ranks and also to promote avenues for pursuing grievances against other parties which discriminate against people living with HIV
4.6.6 Combating Transnational Crime
The AIPJ will be one of an important suite of Australia’s whole-of-government activities in support of partner country efforts to combat transnational crime
AIPJ’s contribution will focus on the long-term strengthening of the building blocks of Indonesia’s law and justice system and supporting the continued development of a robust, pluralist civil society in Indonesia
This will complement the efforts of the Government of Indonesia and other Australian initiatives by strengthening public trust in key state institutions – particularly the judiciary and prosecutorial agencies – involved in combating transnational crimes such as terrorism, money laundering and the trafficking of firearms, narcotics and humans
By facilitating improved access to justice, AIPJ will also be combating transnational crime by strengthening disincentives for individuals to resort to violence
4.6.7 Environment (including compliance with Environment Protection & Biodiversity Conservation Act)
As a Commonwealth agency, all AusAID activity must comply with the Environment Protection and Biodiversity Conservation Act 1999
While efforts will be made to reduce any negative environmental impacts of AIPJ activities, there is no need for a comprehensive environmental impact assessment to be undertaken in relation to AIPJ as it will not involve an environmentally sensitive location or sector
It is envisaged, however, that in strengthening the rule of law and human rights in Indonesia, AIPJ will have an indirect positive impact on the environmental concerns which Indonesia has signalled are the country’s most pressing, such as deforestation, climate change and the loss of marine biodiversity
4.6.8 Disaster Risk Reduction
GoA’s disaster risk reduction policy, Investing in a Safer Future, states that disaster risk reduction will be integrated into the Australian aid program
The policy identifies several factors which exacerbate disaster impacts, including poor land-use management and inadequate enforcement of building codes
These factors are closely linked to governance and the quality of the law and justice sector as a whole
As such, AIPJ will indirectly contribute to disaster risk reduction in Indonesia
4.6.9 Child Protection
AusAID’s Child Protection Policy states that the agency has zero tolerance for child abuse
While AIPJ may involve activities in support of the rights of children, it is not envisaged that any AIPJ activities will involve AusAID staff or contractors working directly with children
If any activities are developed that involve working with children, AusAID and the ISP will identify the personnel positions involved and implement risk management measures in accordance with the Child Protection Policy
4.7 Communications and Partnership Strategy
As mentioned above at 4.3 (Review and Reporting Requirements), the ISP will be required to prepare a Communications Strategy for AIPJ
The Communications Strategy will be updated annually and will cover communication with a wide range of stakeholders, including but not limited to:
AusAID
The Communications Strategy should include a clear framework for regular communication with AusAID Activity Managers and Management, including the types of issues that will be brought to the attention of AusAID for consideration;
Other AIPJ Stakeholders
The Communications Strategy should describe how and with what frequency AIPJ will update Partnership Board members, and other key partners on relevant information concerning AIPJ activities and issues;
External stakeholders
The Communications Strategy should describe how AIPJ will communicate its activities and achievements with the public
The public diplomacy elements of the Communications Strategy will be developed in conjunction with AusAID’s Public Diplomacy team in Jakarta
AIPJ’s public diplomacy should look to be creative in using different forms of media (such as ‘Radio KBR68H’) to promote AIPJ activities; and
Other AIP Activities
As noted above, AIPJ is required to communicate and coordinate with other AIP implemented and funded activities
The Communications Strategy will outline how AIPJ will communicate and coordinate with other AIP activities
4.8 Critical Risks and Risk Management Strategies
Annex 5.10 provides details on the risks to AIPJ’s success arising from the design model chosen and the broader context in which AIPJ will be implemented
The ISP will update this risk management framework following program mobilisation, including assigning responsibility to risk mitigation strategies, and report against these in Annual Progress Reports
4.9 Transition Arrangements
4.9.1 Australia Indonesia Partnership for Justice – transition (AIPJt)
There will not be a full overlap of the management teams of LDF and AIPJ given LDF concluded in December 2009 and AIPJ is expected to commence in late 2010
AusAID has put in place a transition program – the Australia-Indonesia Partnership for Justice – transition (AIPJt) – that will run until the end of 2010 to primarily continue court-to-court activities and act as a bridge between activities
Activities under AIPJt may need to be moved across to AIPJ if they have not been fully implemented within the transition period
In particular, the Program Director and ISP will facilitate an inception workshop to be hosted by Bappenas where AusAID will introduce relevant stakeholders to AIPJ and the new Management and Implementation Team
Upon mobilisation AusAID will facilitate a workshop with the incoming Management and Implementation Team to discuss the LDF Facility Completion Report (FCR) and Independent Completion Report (ICR), as well as the outcomes of the 2010 AIPJt
4.9.2 Key Changes, New Features and Enhancements
Stronger government-to-government partnerships, coordination and collaboration
AIPJ envisages and will support stronger GoI-GoA partnerships, including through:
establishing a Partnership Board (to be co-Chaired by the AusAID Minister-Counsellor in Jakarta and a senior representative of Bappenas) comprising a range of GoA and GoI representatives that have joint control over the direction of AIPJ;
greater high level engagement by AusAID in the management of AIPJ and in building relationships with relevant Indonesian and Australian stakeholders;
greater involvement of AusAID in the implementation of AIPJ, supported by the Program Director and ISP; 
greater alignment with GoI reporting and M&E processes where possible; and
greater support for collaborative government-to-government activities in support of AIPJ outcomes
Greater emphasis on cross-cutting issues such as human rights and performance as reflected in the incorporation of such issues (in particular women’s rights and rights of people with disability) into the AIPJ cross-cutting issues
AIPJ will also support activities that build on LDF’s activities in support of combating corruption
Clearer focus
This design document has a single objective and articulates the outcomes it expects AIPJ to achieve under this
All activities will need to establish a direct link to one or more of the specified outcomes
Moreover, the Operating Principles – particularly the principle of ‘critical mass’ – and the capacity development approach should ensure that AIPJ, while remaining responsive to change, does not involve a large number of small activities as occurred under LDF
Annexes
5.1 Design Process and Summary of Consultations
Australia has provided support to Indonesia’s law and justice sector for over ten years
Australia’s current program, the Indonesia Australia Legal Development Facility (LDF) is due to end in December 2009
AusAID has been undertaking a detailed process of analysis and consultation to develop a new program of assistance to Indonesia’s law and justice sector
This new program of assistance will be called the Australia Indonesia Partnership for Justice
AusAID engaged a concept development team to conduct further consultations with stakeholders in November 2008
Following these consultations, a concept note was developed which set out the proposed goals and objectives of the new program
The concept note was approved through an internal peer review process in June 2008
Ibu Diani Sadiawati, Director Law and Human Rights, Bappenas, participated in the peer review representing the GoI
In Australia: external and whole-of-government consultations
Date and place Organisation Participants
Date and place Event Participants
April-May 2009, Jakarta and Yogyakarta LDF Gender Review The LDF Gender Review mission consulted with a range of government and non-government organisations, including the Directorate General of Human Rights, AGO, Indonesian Supreme Court, Bappenas, Komnas Perempuan, Women Headed Households Empowerment Association (PEKKA), Women’s Legal Aid Foundation (LBH Apik), University of Indonesia Centre for Women and Gender Studies (PKWJ-UI), the World Bank and UNIFEM
May 2009, Jakarta Revisions to the AIPJ concept note AusAID consulted Diani Sadiawati (Director, Law and Human Rights, Bappenas) on revisions to the AIPJ concept note
1 June 2009, Jakarta (with videolink to Canberra) Second AIPJ Concept Peer Review Diani Sadiawati (Director, Law and Human Rights, Bappenas) participated in the AIPJ Concept Peer Review
3 August 2009, Jakarta Preliminary stakeholder workshop on AIPJ design Range of government and non-government stakeholders, including Bappenas, Indonesian Supreme Court, University of Indonesia Centre for the Study of Persons with Disability, Komnas Perempuan, YLBHI, Komnas HAM, Religious Court, AGO, ICW and KPK
19 August 2009, Jakarta Stakeholder workshop on AIPJ objectives Range of government and non-government stakeholders, including Bappenas, Indonesian Supreme Court, KPK, Ministry of Law and Human Rights (Directorate Generals for Human Rights and Legislation); University of Indonesia Centre for the Study of Persons with Disability, YLBHI, Komnas HAM, Komnas Perempuan, AGO, Ombudsman and Judicial Commission
14 – 21 January, 2010, Jakarta Comprehensive consultations on draft AIPJ design Comprehensive range of governments and non-government organisations
Ongoing, Jakarta AIPJ design Ongoing consultation with Diani Sadiawati (Director, Law and Human Rights, Bappenas) as the Co-Team Leader of AIPJ Design Team
5.2 Likely Impacts of Law and Justice Sector Reform in Indonesia on Poverty Alleviation and Sustainable Development
In Indonesia, entrenching the rule of law and protecting human rights is likely to support poverty alleviation and sustainable development, including the achievement of the Millennium Development Goals, through:
Providing mechanisms for the poor and the marginalised to address grievances
The existence of a set of standards to protect the poor and marginalised, if complemented by institutions capable of enforcing those standards, can lead to the realisation of basic human rights (freedom of association/expression, access to education/health, anti-discrimination, etc) which both constitute development ends in themselves and also support the improvement of service delivery in support of other development outcomes
At present, some groups in Indonesia – including rural women  and people with a disability  – are often unable to have their rights realised through access to fair and effective dispute resolution mechanisms
Building confidence in the capacity of state institutions to ensure security
A legal system which administers justice fairly and effectively – both in disputes between private citizens and those involving the state – is likely to reduce incentives to resort to vigilantism, which in turn is likely to reduce the risk of violent conflict and promote stability
This importance to Indonesia of stability, and the interconnected relationship this has with security and economic development, is recognised in the AIP Country Strategy 2008-13
At present, a widespread lack of public confidence in Indonesian law and justice institutions is feeding the development of informal security networks, which may undermine Indonesia’s stability in the long-term
Guaranteeing certainty to domestic and international investors
A predictable legal system is likely to encourage both domestic and international businesses to invest in Indonesia and make more long-term investments, which in turn will contribute to formal sector job creation
At present, Indonesia ranks 129th out of 181 countries surveyed in the World Bank’s Ease of Doing Business Index
Partly due to a particularly low ranking for the sub-index concerning the “procedures, time and cost to resolve commercial disputes”
The comparative experience of other middle-income countries shows that Indonesia will struggle to transition from a lower- to a higher-middle income country without rectifying this ‘bottle neck’
Reducing corruption
The existence of impartial law enforcement and reliable avenues for enforcing transparency (e.g. freedom of information laws) is likely to, among other things, reduce the state revenue lost to corruption, bring about a greater culture of merit-based procurement and staffing in state institutions, and support more effective delivery of basic services
The AIP Anti-Corruption for Development Plan 2008-13, for example, recognises that corruption damages public trust and accountability and distorts the allocation of public resources
At present, Indonesia suffers from high levels of corruption
In the RAN-PK, the Government of Indonesia itself states that ‘[c]orruption in Indonesia is a disturbing phenomenon that has spread and expanded to the executive, legislature and judiciary
This has been one of the main factors that hampers Indonesia’s development’
Entrenching democracy and supporting a robust, pluralist civil society
As the role played by the Constitutional Court in Indonesia’s recent legislative and presidential elections demonstrates, the existence of prompt and well-reasoned judicial decisions is crucial to quelling electoral uncertainty and entrenching public trust in the electoral process
A fair and effective law and justice sector, grounded in respect for basic human rights, is also a crucial element in supporting the development of a robust, pluralist civil society
This in turn is important to cement progressive reforms
5.3 Key Indonesian Laws relating to Law and Justice Sector Reform
The ultimate policy context for the AIPJ is the Constitution of the Republic of Indonesia 1945, which now recognises the pre-eminence of the rule of law and enshrines a significant number of internationally recognised human rights
Relevant constitutional provisions include: 
a commitment to the rule of law (art 1(3));
a commitment to the principle of an independent judiciary (art 24);
the establishment of a system of judicial review by a Constitutional Court (art 24C);
the right to freedom of association, assembly and expression (arts 28 and 28E(3));
the right to life (art 28A);
the rights of children to freedom from violence and discrimination (art 28B(2));
the right to education (arts 28C and 31);
the right to equal treatment before the law (art 28D(1));
the right to freedom of religion (arts 28E(2) and 29);
the right to communicate and to obtain information (art 28F);
the right to be free from torture or inhumane and degrading treatment (art 28G);
the right to health (art 28H(1));
the right to receive affirmative action to have the same opportunities and benefits as others (art 28H(2)); and
the right to be free from discriminative treatment (art 28I)
Throughout the past decade, Indonesia has passed a number of laws and policies which demonstrate a commitment to reform the accessibility, transparency and accountability of the country’s law and justice system
These laws and policies roughly fall into four categories: legal services, legal information, human rights and anti-corruption
Among the most important are:
Law No 39 of 1999 concerning Human Rights
The Human Rights Law articulates Indonesia’s commitment to a range of basic human rights
It also ensures the independence of Komnas HAM
Presidential Decree No 91 of 1999 concerning a National Legal Documentation and Information Network (JDHI)
Decree 91/1999 establishes a network (called the “JDIH”) for distributing legislation at national, provincial and district/municipal levels
It names the Ministry of Law and Human Rights as responsible for ensuring that all legislation is properly distributed to relevant offices and made publically available
The implementation of Decree 91/1999 has been patchy; some regions  and government institutions  appear to have implemented it well and made most legislation publically available, whereas others have not
Law No 20 of 2001 concerning Amendments to Law No 31 of 1999 concerning the Eradication of Criminal Acts of Corruption
Law No 30 of 2002 concerning the Commission for the Eradication of Corruption (KPK)
Law No 23 of 2004 concerning the Elimination of Domestic Violence
Law No 32 of 2004 concerning Regional Governance
The Regional Governance Law, together with a law relating to financial decentralisation, establish a comprehensive system of decentralised governance in Indonesia
Although the judiciary and police are expressly exempted from the decentralisation process, these laws affect the law and justice sector by transferring significant legislative and service delivery authority to sub-national governments
The Regional Autonomy Law does, however, provide authority to the Ministry of Home Affairs to annul Regional Regulations (Perda) which conflict with National Laws (Undang-Undang)
The system also allows for judicial review of Perda by the Supreme Court
The implementation of these Perda review mechanisms has been very poor, as the Ministry has only had the capacity to review a small portion of all Perda being passed and the Supreme Court has limited its own jurisdiction to review Perda
Law No 11 of 2005 concerning the Ratification of the International Covenant on Economics, Social and Cultural Rights (ICESR)
Law No 12 of 2005 concerning the Ratification of the International Covenant on Civil and Political Rights (ICCPR)
Supreme Court Decree No 144 of 2007 concerning Transparency of Information in the Judiciary
Decree 144/2007 144/2007 commits the Supreme Court and all lower courts under its supervision to make a range of judicial information publically available to the public
The Decree sets out mechanisms for applying to access information and states that all courts should appoint an Information Officer to manage these processes
The judicial information covered by Decree 144/2007 includes most relevant judicial information (judicial decisions and institutional information such as fees, annual reports, practice notes, public investigations, etc) except for information which relates to cases which are subject to appeal
While a large number of the Supreme Court’s own decisions are now publically available, it admits that it has experienced challenges in implementing Decree 144/2007 with regard to lower courts
Law No 7 of 2006 concerning the Ratification of the United Nations Convention against Corruption
Law No 14 of 2008 on Freedom of Information
Law 14/2008 establishes rules and mechanisms for facilitating public access to range of judicial, legislative and executive government information
It includes, for example, provisions requiring the establishment of a Central Information Commission in Jakarta and a Provincial Information Commission in each province
Law 14/2008 is due to enter into force in April 2010
Law No 25 of 2009 concerning Public Service Delivery
The Public Service Delivery Law sets minimum standards for the delivery of basic public services (such as adherence to anti-discrimination principles), and refers to various mechanisms for the resolution of complaints relating to these standards
5.4 AIPJ Stakeholder Analysis
This Annex provides an overview of key law and justice sector actors in Indonesia
General courts and religious courts
Under the provisions of Article 24 of the Indonesian Constitution, the court of last resort is the Supreme Court
In 2004, Indonesia’s courts were united under the administrative, organisational and financial authority of the Supreme Court rather than joint responsibility with the Ministry of Law and Human Rights (sometimes called the ‘One Roof Policy’)
Those four branches of the court system (excluding the Constitutional Court) are now: 
General Courts of Justice (civil and criminal cases); 
Religious Courts; 
State Administrative Courts; and 
Military Courts
In the general court system, cases at first instance are heard by District Courts (Pengadilan Negara) at the district/municipality level and appeals are heard by Courts of Appeal/Intermediate Courts (Pengadilan Tinggi) at the provincial level
Cases from Pengadilan Tinggi can be appealed to the Supreme Court on questions of law
Similar arrangements exist for other branches of the court system
The Supreme Court is also empowered by statute to review the conformity of Government Regulations, Presidential Regulations and Regional Regulations with National Laws
Though the courts are generally perceived as among the least transparent institutions in the country, they are obviously central to the effective functioning of the law and justice sector in Indonesia
The Supreme Court is proposed as an AIPJ partner because it is an integral justice institution with which Australian institutions have built a productive and sound working relationship over ten years, most recently under LDF
With demonstrable results achieved in the General Courts of Justice and the Religious Courts, the Supreme Court is a key determinant in the quality, equity and accessibility of justice in Indonesia and touches on the lives of most people who interact with the justice system
Continued engagement also provides the potential for ongoing whole-of-government collaboration by leveraging the pre-existing relationship with the Federal Court of Australia which has been providing assistance to the Supreme Court since 1999
A strong relationship also exists between the Family Court of Australia and the Religious Court
Attorney-General’s Office (AGO)
The Attorney General’s Office (Kejaksaan Agung) answers to the Executive and is primarily responsible for prosecuting criminal offences
The geographical distribution of the AGO mirrors that of the Supreme Court with district (Kejaksaan Negeri) and provincial (Kejaksaan Tinggi) level offices
The AGO has 5 divisions: 
General crime;
Special crimes (which includes corruption and human rights); 
Civil and administrative;
Supervision (which deals with human resources management); and 
Oversight
The AGO also maintains an Information Centre and a Centre for Training and Education
The AGO is proposed as an AIPJ partner because it is a key institution but faces a range of significant challenges in terms of service delivery and credibility
Like the Supreme Court, it is an important link in the ‘chain’ of justice and accordingly is a significant determinant of the equitability and accessibility of justice, particularly in terms of the criminal law
Whilst the focus of support to the AGO will differ from that assistance under LDF which initially focused on transnational crime, pre-existing relationships built under LDF provides a sound platform for ongoing reform activities notwithstanding the challenges facing the agency
Directorate General for Human Rights
The Directorate General of Human Rights (Ditjen HAM) is a division within the Ministry of Law and Human Rights
It has a duty to formulate and implement policies and technical standardisation in the field of human rights
To carry out this duty, Ditjen HAM is responsible for: 
preparation of department policy formulation; implementation of policy and technical standardization; compilation of norms, standards, guidelines, criteria and procedures in the field of public communications services (all three includes cooperation, dissemination and strengthening of human rights information in the context of the protection, promotion, enforcement, compliance and respect for human rights;
provision of technical assistance and evaluation; 
coordinating the implementation of the National Committee Secretariat activities of the National Action Plan for Human Rights (RAN-HAM)
LDF has provided assistance with the implementation of the RAN-HAM
The latest RANHAM, which was launched in 2004, has been rolled out across Indonesia at different levels of government
LDF assisted with a national seminar for 300 district officials, and has also funded several regional coordination workshops
Ditjen HAM is likely to be a partner supported through AIPJ due to their clear mandate as the lead government agency on human rights policy and because of the spread of their representative offices throughout Indonesia
Directorate General for Legislation
The Directorate General for Legislation is a division within the Ministry of Law and Human Rights
Its mandate is to formulate and implement policies on legislative drafting and to pursue technical standardisation in the field of legislation
Its responsibilities cover:
preparation of departmental policy in the field of legislative drafting;
policy implementation in the field of legislative drafting in accordance with applicable regulations;
formulation of standards, norms, guidelines, criteria and procedures in the field of legislative drafting;
providing technical guidance and evaluation on legislative drafting;
drafting, harmonising, monitoring and evaluating the laws and regulations; and
publishing draft legislation and relevant supporting materials
Ditjen PP has an emerging relationship with the Office of Legislative Drafting and Publishing within Australia’s AGD
In a meeting between the two agencies in November 2008, several proposed cooperative initiatives were discussed, including projects relating to the electronic publication of legislation
National Legal Development Agency
The National Legal Development Agency (BPHN) is a portfolio agency within the Ministry of Law and Human Rights
Its functions include:
developing networks and systems for documenting legal information (including legislation);
developing law libraries;
formulating and implementing technical policy in relation to improving the legal system;
providing technical guidance and evaluation on improvements to the legal system;
implementing GoI development plans in relation to the coordination of legal development;
coordinating the national legislation development program (Prolegnas);
guiding, supervising and assisting the development of legal education; and
raising public awareness about the rule of law
BPHN’s functions indicate that it is an important actor in the sector
However, it has a low profile and no significant links to any Australian organisations
Coordinating Ministry for Political, Legal and Security Affairs
The Coordinating Ministry for Political, Legal and Security Affairs (Kemenko Polhukam) is the peak agency within the GoI for ‘assisting the President to coordinate the planning and formulation of policy, and the synchronisation of its execution, in the fields of politics, law and security.’  
The Kemenko Polhukam coordinates whole-of-government policy involving a number of agencies, including the Department of Law and Human Rights, the AGO, the Ministry of Home Affairs, the Ministry of Foreign Affairs and the National Police Force
The position of Coordinating Minister for Political, Legal and Security Affairs is generally allocated to a former senior official from the Armed Forces
President Yudhoyono held this post prior to becoming President
As such, the Kemenko Polhukam wields significant political weight
Given its political clout and the importance of enhanced coordination between legal institutions, the Kemenko Polhukam has a vital role to play in supporting reforms to the law and justice sector
The Deputy Coordinating Minister for Law and Human Rights, who is usually selected from the senior ranks of the AGO, has a particular important role to play in this regard
Australia has very few links with the Kemenko Polhukam, but given its importance to the sector it is worth exploring how a partnership with this institution can be established
National Human Rights Commission and the National Commission on Violence against Women
The National Commission on Human Rights (Komnas HAM) is an independent body that conducts research, monitoring and public education on human rights
Komnas HAM also provides consultation, negotiation, mediation and reconciliation services, refers unresolved issues to the court system when necessary and provides the President and Parliament with recommendations regarding settling significant human rights cases
Under the provisions of Law 39 of 1999 concerning Human Rights, Komnas HAM commissioners are selected by the National House of Representatives (Dewan Perwakilan Rakyat) from candidates proposed by the sitting members of Komnas HAM
The present commissioners are impressive individuals but Komnas HAM continues to face several challenges, among them technical difficulties in managing individual complaints from the community
The government budget for Komnas HAM includes the operating expenses for the National Commission on Violence against Women (Komnas Perempuan) and the Commission for Child Protection (Komisi Perlindungan Anak Indonesia, or KPAI)
Komnas Perempuan has been an important partner under LDF by implementing the work on the development of a gender sensitive criminal code
AusAID has recognised the importance of this institution and its potential to contribute to debate on, and protection of, women’s rights in Indonesia
As such, AusAID is also providing direct financial support to Komnas Perempuan for two years (2009-2010) to assist it to carry out key core activities whilst it resolves its position within GoI’s budgetary structure
Australia has strong relationships with Komnas HAM and Komnas Perempuan and support for these institutions has been a key feature of LDF
Corruption Eradication Commission
The Corruption Eradication Commission (KPK) has a mandate to support corruption prevention and investigate and prosecute large-scale (over one billion rupiah) corruption cases that involve law enforcement agencies, state apparatus, and people who are allegedly involved with corruption by state apparatus or law enforcement apparatus
Corruption cases from KPK are dealt with by a Special Court on Anti-Corruption, which has five judges, three of whom are ad-hoc judges (compared with other court tribunals which consist of three judges)
There are also certain time requirements with regard to progressing cases before the Special Court and once presented, indictments cannot be withdrawn
Ad-Hoc Judges of the Special Court were chosen by a special selection committee constituted under the Supreme Court, comprising NGO representatives, scholars, and judges
In late 2006 the Constitutional Court ruled that the establishment of the Special Court on Anti-Corruption in the law regulating the KPK is ‘conditionally unconstitutional’
The Constitutional Court gave a maximum of three years (until late 2009) for Parliament to enact a new law on the Special Court
Since its establishment in 2004, the KPK has not prosecuted a great deal of cases (approximately only one hundred)
Of the 500+ districts in Indonesia, for example, the Special Court exists in only one (Central Jakarta)
However, the KPK’s perfect strike rate and the high profile of the officials it has successfully prosecuted has played an important role in raising the profile of the GoI’s anti-corruption drive
The KPK is currently a key focus of the GoI’s anti-corruption efforts and is generally seen as an effective and credible institution
AusAID has provided support to the KPK under LDF and a Memorandum of Understanding has been signed between the KPK and several Government of Australia agencies (AGD, APSC and ACLEI)
It is therefore well-positioned to continue to be a key Government of Australia partner and to receive future assistance under AIPJ
However, such assistance will need to be mindful of:
the AGO’s mandate as the primary prosecutorial agency in Indonesia;
the high level of donor assistance which the KPK receives;
the fact that the KPK focuses on high-profile cases and has very little presence at sub-national level; and
recent allegations against the Chief Commissioner (for murder) and several other commissioners (for corruption)
National Development Planning Agency
The State Ministry of National Development Planning (Bappenas), which is also known as the National Development Planning Agency, is mandated to assist the President with policy formulation and the coordination of development planning
The National Development Planning System now provides three levels of national development planning :
a) A Long Term Development Plan of 25 years duration that is endorsed by the Parliament made in the form of a statute
b) A Medium Term Development Plan of 5 years duration that aligns with the Long Term Development Plan
It is made in the form of a Presidential Regulation
The planning process includes planning consultation that must be conducted within two months of a President taking office, whilst the plan itself must be completed within three months of a President taking office
c) An Annual Development Plan of 1 year duration that aligns with the Medium Term Development Plan
Annual Development Plans are also called Government’s Working Plans (Rencana Kerja Pemerintah or RKP)
The making of RKP is also the initial stage of state budget cycle
The law states that RKP must be in place in April of every year for the establishment of the budget of the following year
Bappenas conducts the whole planning process, including bottom up planning through the district planning agencies (Bappeda) which informs both the local and national development plans that shape the local and state budgets
It is AusAID’s main counterpart with regard to the Jakarta Commitment and is a key partner as GoA works towards greater use of GoI systems
One tangible ramification of the Jakarta Commitment is the necessity for donor registration of assistance on the Blue Book
Bappenas manages coordination and documentation of funding priorities and their implementation, and the ‘Blue Book’ is the culmination of this work 
Whilst in the past some donor funded initiatives have progressed even though not included in the Blue Book, moving forward, being ‘on the Blue Book’ is important because:
It is GoI policy;
It is consistent with the Jakarta Commitment;
It is a practical means of pursuing alignment with partner country priorities and donor coordination as key aid effectiveness principles;
It is consistent with GoA policy to work in partnership with GoI to support its own priorities; and
It will facilitate effective management as progressively, visas, taxation and other administrative issues relevant to donor assistance will be linked to a Blue Book entry
Bappenas’ Directorate of Law and Human Rights has been playing an important role in the planning process in terms of legal and judicial reform
The Blueprints for the Supreme Court, Court Reform, Human Rights Court, and the establishment of Anti-Corruption Court all benefited from coordination by Bappenas
Bappenas also played a key role in coordinating the drafting of the National Access to Justice Strategy and National Action Plan on the Eradication of Corruption (RAN-PK)
In each case the same approach was used for coordination with Bappenas hosting meetings for senior officials of relevant institutions, and providing drafts of the blueprints and other documents with facilitated input by various actors and civil society partners
Bappenas has a long-standing relationship with AusAID and co-chairs the annual Senior Officials Meeting which determines the priorities of the AIP
Judicial Commission
The Judicial Commission (Komisi Yudisial) was established in 2004 with the authority to supervise the conduct of judges, and to select judicial candidates to be elected by the Parliament as Supreme Court Judges
In 2006, the Constitutional Court ruled that the Commission did not however have the authority to supervise judges in their judicial decision making capacity
The Australian Government has limited experience and relationships within this agency upon which future activities could be soundly based
However, a ‘watching brief’ by AIPJ and incremental interaction via Bappenas may present opportunities for future support, if it subsequently became appropriate to do so
Constitutional Court
The authorities and responsibilities of the Constitutional Court (Mahkamah Konstitusi) include reviewing National Laws (Undang-Undang) against the Constitution, resolving disputes over the authority of state institutions whose powers derive from the Constitution, overseeing the dissolution of political parties, and ruling on electoral disputes
The Constitutional Court also has the authority to impeach the President and/or the Vice-President
The Constitutional Court is a key law and justice sector institution in Indonesia
However, it has not sought international donor assistance and has expressed the view that doing so could be interpreted as interference in its independence
At present, therefore, it is not feasible for AIPJ to fund activities which directly involve the Constitutional Court
Ombudsman
The Ombudsman (Ombudsman Republik Indonesia) was formerly established in 2008, but operated from 2000-2008 under a Presidential Decree (rather than a constitutive statute) as the National Ombudsman Commission
Its functions involve investing complaints made in relation to the delivery of public services which have been funded (fully or partly) through national or sub-national government budgets
In 2002, there was early contact between Australia’s Commonwealth Ombudsman and the National Ombudsman Commission and this support continued through the AusAID-funded Government Sector Linkages Program (GSLP) and the Government Partnerships Fund (GPF)
In May 2006, a Statement of Understanding was signed by the Commonwealth Ombudsman, the Chief Commissioner of the Indonesian National Ombudsman Commission, the New South Wales Ombudsman and the West Australian Parliamentary Commissioner for Administrative Investigations
This statement involved an agreement that all parties would work together to strengthen links between them
The Ombudsman is yet to illustrate that it is playing a strong role in reforming the sector, partly due to the fact that it did not have a statutory basis until late 2008
It is also unclear what the Ombudsman’s relationship will be to the Delivery of Public Services Commissions to be established at national and sub-national levels under the recently-passed Delivery of Public Services Law
To the extent to which the Ombudsman can contribute to AIPJ’s objectives and expected outcomes
AIPJ seek to involve it in AIPJ activities and/or build on existing partnerships between the Ombudsman and its Australian counterparts : Professional associations
Asosiasi advokat
There is a range of relevant professional associations for advocates (barristers), notaries and other legal sector professions in Indonesia
These associations, particularly those with the statutory authority to discipline members, have the potential to play a role in enhancing the quality and integrity of the legal profession
This in turn would provide important support to Indonesia’s anti-corruption agenda
At present, the professional associations in the legal sector are fragmented
There have, however, been several attempts to introduce a single professional association for advocates, including an Advocates Law in 2003 and a recent Constitutional Court decision that the Indonesian Bar Association (PERADI) is the only bar association with the authority to conduct pre-admission training and to admit and discipline advocates
PERADI has had some contact with the Law Council of Australia (LCA), and LCA has conducted a needs assessment of PERADI which was raised at the most recent meeting of the Australia-Indonesia Working Group on Legal Cooperation
The importance of PERADI to the effective functioning of the legal profession and the law and justice sector as a whole points to the importance of developing this emerging partnership
Legal sector NGOs
The past ten years has seen the emergence of dozens of new NGOs which are conducting work related to the Indonesian law and justice sector
There has also been a lifting of restrictions placed on older law and justice sector NGOs, such as YLBHI
These organisations are at the core of the ‘demand-side’ of justice and therefore complement the largely supply-side emphasis of institutional efforts to improve the delivery of legal services
Legal sector NGOs are also relied upon by the GoI, donors and the private sector to support and/or substitute the delivery of key services (eg legal aid) and technical assistance for policy-makers
The AusAID-commissioned Indonesian Legal Sector Analysis and other research on the sector points to the following issues in relation to Indonesian law and justice NGOs:
NGOs are suffering organisational stress and, in some cases, declining capacity
Although the reasons are varied, they typically included ‘change weariness’, ‘brain drain’, and inability to continuously attract and retain young professionals in the face of more financially compelling and personally challenging alternatives
Although several national-level organisations working in the law and justice sector demonstrate a very high level of technical capacity and commitment to reform, much of civil society in the sector – particularly at the district and provincial levels – struggles with many of the capacity challenges similar to those agencies in the sector with which they are engaging;
Since Reformasi, NGOs working in the area of justice have loosely been divided along two lines
First, there are those that have followed a more traditional ‘outside’ path of advocacy, critiquing, and bridging between formal institutions and communities
Second, there are those that have directly engaged as service providers, advisers, reformists and experts ‘inside’ the justice agencies, almost exclusively as a result of donor funding
Some of course have spanned both;
Internal NGO involvement in formal sector reform ranges from being embedded and widespread (such is the case of the Supreme Court) to being embedded but contained (such as in the Program Management Office of the AGO) to being ad hoc (such as in Corrections and the Indonesian National Police)
However, whilst the upside of this approach has included (but is not limited to) building of local ownership, cultural and contextual relevance, a low cost local technical resource base and the breaking down of traditional formal-informal barriers, there has been considerable downside in terms of NGO organisational viability;
The current approach to the use of ‘embedded’ NGO personnel is effectively transforming some NGOs into commercial consultancies, which poses significant downsides and risks for donors and NGOs alike, including jeopardising broader advocacy roles and contributing to the NGO malaise;
At this point in time, given community capacity, there is no logical alternative to NGO engagement as an instrument to support enhanced law and justice sector service delivery through demand-side activity; and
Generational change is an issue for many NGOs, as a large number of their personnel who were active in the Reformasi period are moving on to new challenges such as study or professional development, or are withdrawing from the sector from exhaustion or frustration
Under AIPJ’s objective, AIPJ will seek to adopting a more structured approach which supports both the ‘internal’ and ‘external’ engagement models in a manner that ‘does no harm’ and builds demand-side capacity and ongoing NGO viability
Key areas of such focus under AIPJ could include:
support for organisational clarity around strategy and policy, including clarification of organisational mandate and the mechanisms needed to achieve organisational objectives;
support for clear definition of who their target groups are, how these are to be reached, and how service delivery is quantified;
support for demand-driven reforms, including stimulation of community demand through outreach activities, surveys and monitoring
Whilst it is important to retain close involvement with law and justice sector agencies, it is equally important that balance between supply and demand be achieved, and NGOs are a key contributor to that balance;
supporting the development of administrative and managerial capacity of law and justice sector NGOs, including support for attraction and retention strategies, including but not limited to incentive-based initiatives; and
support for enhanced sub-national engagement, as few NGOs have branches at district or provincial levels 
However, it is a common practice for Jakarta-based NGOs to work together with their partner organisations when conducting activities at local levels for the purposes of efficiency, accessing specific local knowledge and building the capacity of local NGOs
This can be reinforced as many of them have the same local partners
Law schools
There are approximately 200 law schools in Indonesia, of which around 30 are state law schools
The best and brightest Indonesian high school graduates very rarely choose to study law, which is both a cause and an effect of the challenges facing the country’s law schools
These include budget constraints, poor marketing, curriculum development capacity, teaching methods, research, academic administration and ongoing professional development
Indonesia’s National Access to Justice Strategy recognises the importance of this, and has therefore included bringing about a “change of paradigm in legal development and the role of legal education in Indonesia” as the first of its “major strategies”
Human resource development, marketing, refinement of selection processes, the establishment of international networks and the reinvigoration of a state law school curriculum consistency  may be valid entry points for Australian assistance to Indonesia’s tertiary legal education sector
At present, however, other donors – most notably USAID – are currently designing programs in support of some of these areas
Assistance to this sector will therefore not be a primary focus of AIPJ at present
Some assistance to Indonesian law schools may be provided in support of AIPJ’s outcomes and/or under the Partnership and Emerging Issues Fund
Media
The Indonesian media currently enjoys unprecedented levels of freedom of expression, however its investigative capacity remains very weak
This is particularly so in relation to reporting on law and justice sector issues
While media associations are not envisaged as a short-term counterpart for the AIPJ, future engagement may be a useful way of supporting demand-driven reform in the justice sector
National Parliament
Indonesia’s National Parliament consists of the People’s Representative Council (DPR) and the Regional Representative Council (DPD)
The National Parliament was largely a rubber stamp prior to Reformasi, but in recent years it has been playing an increasingly powerful role in setting the legislative agenda
However, the national parliament is widely perceived as corrupt, as well as unproductive since it routinely fails to meet its legislative targets under annual and five yearly planning cycles
AusAID currently provides funds for a UNDP-Asia Foundation induction program for members of Indonesia’s parliament, with scope for further work with parliament in the future
Assistance to Parliament will not be a primary focus of AIPJ
Sub-national parliaments
Sub-national parliaments (DPRDs) play an important role in Indonesian governance in the era of reformasi and decentralisation
These parliaments have varying records of legislative achievement and clean government
Many DPRDs regularly pass Regional Regulations (Perda) which conflict with higher sources of law, such as national laws (Undang-Undang), the Constitution and Indonesia’s international legal obligations
There is therefore a need to ensure harmonisation of laws
Australia has had very little involvement with DPRDs to date
Sub-national governments 
Sub-national governments (Pemda) are designated as the major providers of basic public services (health, education, infrastructure, etc) under Indonesia’s system of decentralised governance
Although they do not have jurisdiction of legal issues, they have an important role to play at the nexus of access to justice and access to other government services, such as through the provision of legislation
Australia has some involvement with Pemda in Aceh, NTT, NTB, Papua and West Papua Provinces
5.5 Detailed Analysis of Lessons Learned from Previous Assistance
BACKGROUND
Australia has been providing assistance to Indonesia’s legal sector since 1999
Initial support was provided to the Supreme Court under the Government Sector Linkages Program (now PSLP) and grew under the Legal Reform Program 2001-2003 ($4.6) and the Indonesia Australia Legal Development Facility (LDF) April 2004- December 2009 ($24.6)
The objective of Australia’s most recent program of support, LDF, was ‘to reduce poverty in Indonesia by enhancing human rights and supporting the development of a more just and equitable legal system’ and its purpose was ‘to strengthen the capacity of Indonesian governmental and civil society institutions to promote legal reform and the protection of human rights through a facility that has the flexibility to provide core program support and respond to immediate and emerging issues’
LDF commenced with a focus on working with key partner institutions but evolved to adopt a thematic approach with four key themes: access to justice, human rights, anti-corruption and transnational crime
It has worked with a wide range of partners in the sector
INDEPENDENT REVIEWS 
An independent Mid Term Review (MTR) of LDF was conducted in March 2007
It found that LDF: 
was amongst the most strategic and influential donor programs with relation to the Indonesian central legal institutions, notably the Supreme Court and other elements of the judiciary;
had been well-received by counterparts due its flexibility;
was weak in articulating clear medium and high-level reform objectives
It noted that LDF’s stated focus on incrementalism, responsiveness and institutions were not objectives themselves but were instruments for achieving objectives;
had made some significant contributions to Indonesian legal development, but not evenly across themes
The MTR challenged LDF to demonstrate how its many activities added up to a higher objective;
assessed the Access to Justice Theme as “outstanding” in its realisation of its goals and objectives
Positives include inclusion of gender, linkages to broader reforms and extensive CSO involvement; and
assessed the Human Rights Theme as “fair” in reaching its objectives
Aspects that were lacking from this theme include an absence of clear priorities, no way of determining measurable impact, or way to measure effectiveness
These conclusions are supported by the first draft of the Independent Completion Report which has recently been undertaken (report in the process of being finalised)
LESSONS LEARNED
The MTR and other assessment tools have highlighted a number of lessons in relation to LDF, as discussed below
3.1 Lessons Relating to the Facility Model
The following lessons relate to the Facility model and the overall approach of LDF:
LDF, as a facility, is flexible and responsive, which makes it popular with counterparts as it can respond to ad hoc requests and can establish relationships in this way;
The underlying rationale of LDF was incremental engagement and relationship building
This was good to establish relationships with institutional players, but the approach needs to evolve to address key sector issues
There needs to be a balance between being flexible and working on the right/tough issues;
The overall objective of LDF was too high level – it therefore did not have a clear statement of what it was trying to achieve;
Without a clear objective statement it is difficult to articulate achievements under LDF
With almost 150 small-value activities, it is difficult to aggregate into a clear overall message of achievement;
There has been very little integration into GoI processes or systems
Being flexible and responsive has actually contributed to working outside GoI systems (eg on procurement and travel); and
Facilities are management intensive and are therefore costly delivery mechanisms
Based on these lessons the successor program to LDF should: 
- try to maintain flexibility but articulate clear, measurable objectives upfront;
- contribute to the objectives by identifying proactive strategies rather than relying on change to occur primarily through incremental engagement and relationship-building;
- have fewer, more targeted activities which clearly relate to stated objectives; and
- have a limited mechanism to retain a significant degree of flexibility in order to respond to ad hoc and emerging issues
3.2 Lessons Relating to Substance of LDF
The following lessons relate to engagement under the four key themes of LDF
3.2.1 Access to justice/Judicial reform
This has been the most successful component under LDF
It is the theme with the most demonstrable and tangible results
Successes include improving case management in the Supreme Court by reducing the case backlog by over 50 per cent; 
establishing a baseline data set on access and equity in the Religious Court, particularly to women and the poor, by conducting a large-scale survey aimed at improving court services; 
working with the Religious Court to implement recommendations emerging from the survey, including a budget increase for fee-waived cases and an increased number of circuit courts; 
improving transparency of the courts through the publication of decisions on the internet and the notification to users of court administration fees
Focus on service delivery under this component was a strength
This component benefitted from a long history of cooperation
It built upon over ten years of assistance to Indonesia’s courts from the Federal Court of Australia, and expanded this relationship to include the Family Court of Australia and the Religious Court of Indonesia
This peer-to-peer assistance is unique and valuable
Despite these successes, there still is a need to ensure all activities link clearly to the stated objectives of the program
While LDF has made some very positive gains in this area, the judiciary continues to be widely perceived as corrupt and reluctant to undertake some large-scale fundamental reforms
This seems to be at odds with LDF’s successes in this area
A pragmatic focus on women’s issues, through access to courts and family law issues, has been a very positive aspect of the program
Application: The new program should seek to build upon the work done under this theme where possible
The court-to-court partnerships should be maintained
The work focussing on women’s access to legal services with the Religious Court should also be continued and expanded to the general courts system
The progress made on access to legal information (i.e. decisions and fee structures) offers significant potential as a building block for further improvements to judicial transparency
3.2.2 Human rights
Under this theme, LDF supported legal aid initiatives and human rights organisations
Key outputs included the development of the first ever comprehensive compilation of Indonesian law and policy advice in the Indonesian Legal Aid Handbook; the facilitation of debate on a national legal aid system; the training for advocates to enable them to represent legal aid clients in court; and the provision of assistance to the National Human Rights Commission, including capacity building for its regional offices
The overall success of this theme was “fair”
There was an over-emphasis on technical training, and not enough emphasis on sustainable service delivery
There was not a clear overall objective for engagement on this theme, which led to activities being too diverse and non-strategic
The capacity of counterparts is low and, unlike working with the courts, none of the key institutions in this field have clear strategic plans or a reform agenda
The capacity of institutions in the regions where they are most needed is particularly low – most officials, particularly in the regions, don’t have a sound understanding of basic human rights issues
Human rights is a particularly sensitive area and some proposed activities were deemed too sensitive for implementation
There are many donors involved in providing human rights assistance, but this is not well coordinated
Application: Whilst there is room for improvement on engagement under LDF, Human Rights remains an important issue and should remain a focus for a future program, bearing in mind the following: 
- focus should be on service delivery;
- activities should be better aligned to GoI’s international human rights obligations;
- focus needs to be on strengthening rights bodies and enhancing awareness of human rights principles at the sub-national level;
- there is potential to focus on particular issues such as women’s rights and rights of people with disabilities
The lack of a national legal aid system remains a big obstacle for the community to protect and enforce their legal rights in Indonesia
This issue should a focus for the future program
3.2.3 Anti-corruption
Anti-corruption remains a key component of the AIP Country Strategy and LDF has been one of the main mechanisms by which anti-corruption activities have been implemented
Key outcomes include the development of a Training Needs Analysis for the Corruption Eradication Commission (KPK) and specialist technical training in evidence collection, storage and handling, investigation and surveillance techniques
Assistance provided under this theme was too narrow and focussed on areas of technical expertise possessed by the Lead Adviser
LDF missed opportunities to expand the scope of this theme, despite the release of the Australia Indonesia Partnership for Anti-Corruption Action Plan 2008-13
KPK is a strong institution with strong donor support
Application: Anti-corruption remains an important issue for AIP, and a future program will continue to be a principal vehicle for engagement and implementation of the AIP Anti-Corruption Action Plan
However, support for anti-corruption should be:
- broader than just technical training for KPK;
- aligned with KPK’s strategic plan, with potential to focus on anti-corruption efforts at sub-national level;
- coordinated with other donor support for KPK and other institutions; and
- supportive of NGO monitoring initiatives
3.2.4 Transnational crime
The transnational crime component is the least developed of the four thematic areas under LDF
Key activities under LDF included specialised training for prosecutors in current trans-national crime issues such as illegal logging and training for prosecutors and judges in the application of Indonesia’s anti-terror laws, including innovative moot-court style advocacy skills training
The Attorney-General’s Office (AGO), which manages public prosecution in Indonesia, was less interested in engagement on trans-national crime than support for its general bureaucratic reform program (hence shift in program focus under LDF)
AGO does not have good reputation within the community and is not seen as serious in its attempts to reform
Given the challenges facing the AGO, there is a risk that focusing Australian assistance to it solely on transnational crime will give rise to Indonesian perceptions of heavily supply-driven aid
Some good examples of addressing key emerging issues such as illegal logging through training exercises under this component could be picked up in the future program
Application: Based on lessons from LDF, a new program should:
- maintain engagement with AGO, particularly in relation to the AIP anti-corruption objective
This should be done notwithstanding constraints to reform, in order to ensure that AusAID is in a position to assist should real reform efforts commence;
- address transnational crime issues – both current and emerging (eg people smuggling) – through a flexible funding mechanism or separate program of assistance, rather than as a primary objective of a new program; and
- look for ways to coordinate with proposed USAID assistance to the AGO where possible
3.2.5 NGOs
The Indonesia Legal Sector Analysis raised several issues in relation to NGOs, including:
NGOs are in malaise
They are lacking energy to maintain momentum of reform and need revitalisation
LDF’s attempt at triangulation has been successful in parts (eg the Judicial Reform Team Office at the courts staffed by NGO representatives, and the partnership between ELSAM and DGHAM)
LDF and other donors are contributing to the stagnation of NGOs by using them as pool of individual consultants rather than engaging with and supporting the organisations themselves
Application: A future program should adopt a “do no harm” approach to working with NGOs:
- engaging NGOs rather than individuals where possible;
- providing capacity building support to key sector NGOs;
- providing core support to NGOs where feasible and strategic
3.3 Lessons Relating to the Management of LDF
The following lessons are derived from management aspects of LDF:
Management costs of facilities are high
Facilities are resource-intensive and associated management costs are high
Legal sector programs are particularly expensive, as legally qualified technical assistance attracts a premium rate
A large portion of the funds under LDF went to management and international technical assistance
Given the associated costs, Lead Advisers were engaged on part-time basis – are based in Australia
There should be greater use of in-country expertise rather than international/Australian advisers
The new design could look at placing advisers – including Indonesian advisors – within counterparts
The Advisory Board mechanism did not work
It was not used to guide or shape LDF as anticipated and turned into a rubber stamp for pre-prepared work programs
The future program should reconsider the Advisory Board mechanism
A new program steering mechanism should include counterparts and stakeholders rather than independent observers only
There needs to be a clear role in program management for the Government of Australia, particularly AusAID
Relationships with counterparts often developed through program staff rather than AusAID staff, which made leadership and engagement on the program difficult
The future program should clearly state the role of AusAID within program management
3.4 Lessons Relating to Donor Coordination
There is no formal donor coordination mechanism for the sector as a whole
There is coordination for some parts of the sector, eg the KPK coordinates donor assistance for its programs and the courts regularly hold (somewhat ineffective) donor coordination meetings
However, in some areas, such as human rights assistance, there are many donors doing lots of small training activities and no central point of coordination
There is good communication between key donors in the sector – currently USAID, IMF/Netherlands, UNDP and AusAID, but this is informal/personal rather than institutionalised coordination
The future program should support GoI to coordinate donor activities and to monitor donor assistance to the law and justice sector
5.6 AIPJ Problem Analysis Matrix
The problem analysis framework established here is based on three approaches:
the importance of law and justice institutions as implementers of recent reforms;
the importance of law and justice “building blocks” of transparency, accountability and accessibility as key to ensuring concrete change; and
the importance of selecting appropriate entry points for Australian assistance
Implementation focus: translating commitments into effective legal services
First, given the current context of law and justice sector reform in Indonesia described above (see 2.1.2), it is important that the focus be on implementation issues – ensuring the translation of high-level reform commitments into the effective delivery of legal services to the community
This need is recognised, for example, in the National Access to Justice Strategy
It is also a core element of the GoI Annual Work Plan (RKP) 2010, Agenda Three of which is the ‘reinforcement of bureaucratic and legal reforms, as well as the consolidation of democracy and national security’ (emphasis added)
This implementation emphasis in turn implies an initial focus in the analysis on the effectiveness of legal sector institutions
This would form a logical next step in the reform trajectory of Indonesia’s law and justice sector, as described in Part 2 above, from a lack of commitment to the rule of law (pre-1998), to the designing of new legal and institutional frameworks grounded in the rule of law and human rights (1998-2004) and then to the “road-testing” of the new policies and institutions (2004-2009)
Building block focus: accessibility, transparency, accountability
Second, the analytical framework for the problem analysis will focus on the building blocks for an effective law and justice sector: accessibility, transparency and accountability
According to Indonesian law and policy, these concepts are defined as:
Accessibility – the extent to which the “legal system can be accessed by all people in society and… can administer rules and decisions which are fair for both individuals and groups”; 
Transparency – the extent to which law and justice sector actors “are open to the rights of the community to obtain accurate, honest and non-discriminative information relating to state administration, while ensuring the protection of individual rights, group rights and state secrets”;  and
Accountability – the extent to which law and justice sector institutions “are held responsible for each activity and outcome, in line with the law, to the community…in whom ultimate sovereignty is vested”
This element of the analytical framework is informed first and foremost by GoI policy
Although there is no overarching sector-wide policy on law and justice reform, an examination of the current policy context – as described above – reveals that the underlying theme of recent GoI policy on law and justice is a commitment to enhanced accessibility, transparency and accountability
This commitment can be seen as a ‘de facto’ sector-wide policy
The figure below describes how a commitment to transparency, accountability and accessibility has been the underlying theme across a range of GoI reforms to the law and justice sector, spanning anti-corruption, human rights, legal information and legal services
Figure 2: Transparency, accountability and accessibility as key themes underlying a range of law and justice sector reforms
The importance of donors supporting accessibility, transparency and accountability as law and justice sector building blocks is also a key theme in the latest academic thinking on the provision of development assistance for governance reform
This thinking emphasises the importance of donors focusing on supporting the process of governance reform – on supporting the crafting of equitable ‘rules of the game’ – rather than on working towards specific end states
Supporting the development of accessible, transparent and accountable law and justice sector actors is about supporting the process of Indonesian law and justice reform rather than any specific end goal; accessibility, transparency and accountability are not law and justice ends per se, but rather basic principles for ensuring that “the political energy discharged through ongoing social and economic change finds a constructive (rather than disabling or destructive) outlet.” 
Entry points focus: matching significance, demand and supply
Third, in examining the implementation issues facing institutions within the Indonesian law and justice sector for the purposes of providing Australian development assistance, consideration must be given to which Indonesian organisations are appropriate “entry points” for such assistance
Such a consideration must take into account:
the significance of each institution to the effective functioning of the system as a whole
This includes the ability of the institution to encourage and model reform in other areas of the sector
The benefit of AIPJ’s investment will be enhanced if those organisations with which it works have a significant role in the sector and/or are able to encourage reform in other organisations;
each institution’s commitment to, and capacity for, progressive reform
ODA is generally more effective when delivered to (or through) institutions that have both a clear commitment and a strong capacity to reform;
Australia’s capacity to support reform efforts
This issue requires, in turn, consideration of three issues:
the quality of relationships between the Indonesian institution and Australia, including relevant counterpart Australian institutions
Strong relationships provide an important starting point for effective cooperation;
Australia’s ability to provide expertise, including through AusAID’s whole-of-government partners; and
alignment with Australia’s national interests
These three approaches frame the initial problem analysis
Implementation focus Building blocks focus Entry points focus
Organisation Accessibility Transparency Accountability Significance to sector (0=low; 5=high) Commitment and capacity for reform (0=low; 5=high) Australia’s comparative advantage as a donor (0=low; 5=high)
General courts Physical and financial access to courts, particularly for women and people with disability, is weak
Quality and timeliness of decisions is weak
Publication of decisions in Supreme Court is moderate
Publication of decisions in intermediate and lower courts is weak
Publication of user fees is weak
Publication of information on court management and performance is moderate
Mechanisms to prevent corrupt decision-making are weak
Incentives to produce logical decisions are weak
Financial and human resource management is weak
Leadership and strategic thinking is moderate
5  5 – existing relationship between Federal Court of Australia and Supreme Court of Indonesia; GoA has strong interest in supporting judicial reform in Indonesia
Religious courts Physical and financial access to courts in moderate
Quality and timeliness of decisions is moderate
Publication of appellate decisions is strong
Publication of first instance decisions is moderate
Publication of user fees is moderate
Publication of information on court management and performance is moderate
Mechanisms to prevent corrupt decision-making are moderate
Incentives to produce logical decisions are weak
3  5 – existing relationship between Family Court of Australia and Religious Court of Indonesia; GoA has strong interest in supporting reform of religious court (family law) reform in Indonesia to facilitate greater access to justice for women; Australia has moderate expertise on issues relating to religious court reform
Attorney-General’s Office Community’s ability to benefit from effective prosecution of crimes is weak
Publication of reasons for prosecution or non-prosecution is weak
Publication of information on internal management and performance is weak
Mechanisms to prevent corrupt practices are weak
5  4 – some engagement with AGO’s Reform Office under LDF; strong GoA interest in effective system of prosecution in Indonesia
Constitutional Court Community’s ability to lodge constitutional complaints is moderate
Availability of Constitutional Court cases, operating procedures and corporate information is strong
Independence of Constitutional Court justices is strong
5  1 – Constitutional Court is not very open to donor funding
Directorate General for Human Rights General community’s ability to consult with government on human rights policy is moderate
Access of people with disabilities to consultative processes on human rights policy is weak
Reporting to international bodies on human rights treaties is weak
Accountability for human rights violations, particularly at sub-national level and in relation to the rights of women, is weak
4  4 – close links under previous AusAID programs
Directorate General for Legislation Community’s ability to access legislation and regulations is weak
Publication of legislation and implementing regulations in draft form is weak
Mechanisms to ensure harmonisation between national and sub-national legislation are weak
4  3 – some prior engagement with the Attorney-General’s Department
National Legal Development Board (BPHN) Community’s ability to benefit from effective justice sector policy-making is weak
Publication of legislation and implementing regulations is weak
Expert commentary on legal policy is weak
3  3 – some prior engagement with other Ministry of Law and Human Rights agencies, but no prior engagement with BPHN; strong expertise within Australia on publishing legislation
Coordinating Ministry for Political, Legal and Security Affairs Community’s ability to benefit from effective coordination between justice sector institutions is weak
Public and GoI understanding of the role of the Coordinating Ministry is weak
The absence of a sector-wide reform policy makes accountability for coordination weak
4  2 – no prior engagement; no natural counterpart agency in Australia
National Human Rights Commission (Komnas HAM) Community’s ability to lodge complaints is moderate
Follow-up on complaints is weak
Reporting on complaints management is weak
Independence of commissioners is strong
4  5 – significant engagement under previous AusAID programs; strong GoA interest in human rights in Indonesia
Commission on Violence Against Women (Komnas Perempuan) Community’s ability to lodge complaints is moderate
Follow-up on complaints is weak
Reporting on complaints management is weak
Independence of commissioners is strong
3  5 – significant engagement under previous AusAID programs; strong GoA interest in gender equality in Indonesia
Commission on Corruption Eradication (KPK) Community’s ability to benefit from efforts to eradicate high-level corruption is moderate
Public information on KPK’s performance is moderate
Independence of commissioners is moderate
3  4 – some engagement under LDF; MoU with GoA
Bappenas Community’s ability to participate in formulating development plans and coordinating donor assistance to the legal sector is moderate
Public information on development planning and coordination in the legal sector is moderate
Monitoring and evaluation of legal sector development initiatives is weak
3  5 – long-stranding AusAID counterpart
Judicial Commission Community’s ability to benefit from effective screening and monitoring of judges is weak
Availability of information on the screening and monitoring of judges is weak
Independence of commissioners is moderate
3  1 – very limited prior engagement
Ombudsman Community’s ability to lodge complaints is moderate
Follow-up on complaints is weak
Reporting on complaints management is weak
Independence of commissioners moderate
2  2 – some prior engagement under GPF
Indonesian Bar Association (PERADI) Community’s ability to lodge complaints against lawyers is weak
Follow-up on complaints is weak
Availability of bar association policies, corporate information and complaints handling information is weak
Representation of legal profession’s interests is moderate
4  3 – some engagement between PERADI and the Law Council of Australia
Legal sector NGOs Community’s ability to monitor justice sector activities through NGOs is moderate
Availability of information on NGO approaches and activities is moderate
Reporting to donors is strong
Accountability of NGO management to core stakeholders is weak
This includes legal aid organisations, which are generally dependent on donors and therefore not as accountable or sustainable as possible
4  5 – AusAID continues to provide significant support; GoA has interest in supporting a robust civil society in Indonesia
Law schools Community’s ability to access quality legal education is weak
Availability of general information about legal education in Indonesia is moderate
Lack of reform agenda for legal education results in weak accountability of law schools to reform legal education
5  2 – limited engagement in past programs; significant expertise in Australia in delivering quality legal education; other donors more active
Media Community’s ability to access quality journalism on legal affairs is weak
Access to information on media ownership is moderate
Media independence is strong
3  1 – no prior engagement, but strong expertise in Australia on media coverage of legal issues
National parliament Community’s ability to register interests with national parliament is weak
Performance reporting and record-keeping is weak
Electoral fairness is moderate
5  3 – some prior engagement
Sub-national parliaments Community’s ability to register interests with national parliament is moderate
Performance reporting and record-keeping is weak
Electoral fairness is moderate
Consistency of sub-national legislation with national laws, particularly those concerning the rights of women and ethnic/religious minorities, is weak
5  0 – no prior engagement
Sub-national executive governments Community’s ability to register interests with sub-national governments is moderate
Administrative decisions are often unavailable
Electoral fairness is moderate
Consistency of sub-national implementing regulations with national laws is weak
5  3 – some prior engagement in targeted provinces
5.7 Synergies between AIPJ and other Australian ODA-funded Programs
World Bank’s Justice for the Poor Project
AusAID currently supports the World Bank’s Justice for the Poor Project (J4P) in Indonesia
The aim of the J4P is to enhance the ability of poor, vulnerable and marginalized Indonesians to access justice
J4P to date has dealt primarily with non-state justice sector institutions
Australia’s continued contribution assists women’s legal empowerment and inclusive, community-based dispute resolution, thereby supporting AIPJ’s objective relating to increasing demand for legal services
There are clear synergies between AIPJ and J4P given that the scope of AIPJ primarily concerns the formal legal sector and J4P’s work has to date been mainly about understanding and strengthening informal justice sector institutions
AIPJ’s focus on transforming reforms into concrete change will position it to act as a ‘bridge’ between the reform processes within the formal law and justice sector on one hand and the informal law and justice sector on the other
AusAID political governance initiatives
AusAID’s political governance initiatives will be centred on the Indonesia Electoral Systems Strengthening Program (IESSP) (under development)
The IESSP’s has two main focal points, the first on strengthening electoral processes and systems, and the second on promoting civic engagement with the electoral process throughout the electoral cycle
These focal points fit neatly with AIPJ’s objectives
AIPJ’s objective of improving the supply of legal services will strengthen institutions which play a key role in supporting electoral processes and systems
Similarly, IESSP’s focus on civil engagement complements AIPJ’s objective around stimulating more effective demand for legal services
AusAID sub-national governance initiatives
The AIPJ has been developed as part of a larger package of Australian support intended to expand, and improve the quality of, critical services in Indonesia
In Indonesia’s decentralised system, sub-national governments have principal responsibility for the delivery of services and ensuring the quality of these services
AusAID is seeking to address capacity constraints at the sub-national level as part of its wide focus on improved service delivery, including through the development of the Australia Indonesia Partnership for Decentralisation (AIPD)
Like AIPJ, AIPD will focus on both institutional strengthening (with an emphasis on local governments’ knowledge development and on performance monitoring) and stimulating demand for good governance (with an emphasis on assisting civil society to scrutinise the management and expenditure of public funds)
AIPJ will contribute to achieving AIPD’s objectives through its focus on strengthening government and civil society capacity in relation to the delivery of legal services to communities
AIPJ will contribute towards creating a clearer operating environment through, for example, activities that improve community access to legal information, particularly at a sub-national level
While appropriate principles and mechanisms are still being developed,  AIPJ will work closely with AIPD and other programs operating at the sub-national level through practical measures
These might include engagement in common coordination and knowledge sharing mechanisms, particularly in relation to service delivery at local levels
AusAID economic governance initiatives
AusAID has recently established the Australia Indonesia Partnership for Economic Governance (AIPEG)
This initiative will focus on institutional strengthening and policy advice in relation to tax administration, debt management, financial system stability, international trade policy, economic policy coordination and public financial management
AIPJ’s contribution to strengthening the rule of law in Indonesia is likely to support the long-term sustainability of the reforms to which AIPEG will contribute
AusAID is currently developing a second phase of the Australia Indonesia Government Partnerships Fund (GPF), which proposes to continue to develop government-to-government linkages between Australian and Indonesian agencies in support of economic governance and public sector management in Indonesia
The continued development of partnerships between Australian and Indonesian justice sector institutions will complement the GPF partnerships by deepening bilateral government-to-government links in a related but distinct sector
In doing so, AIPJ will be supporting greater whole-of-government engagement between the two countries
AusAID regional programs
AusAID’s Asia Regional Branch is currently funding the Asia Regional Trafficking in Persons (ARTIP) Project
ARTIP aims to contribute to the prevention of trafficking in persons in the Asia region by facilitating a more effective and coordinated approach to trafficking by the criminal justice systems of a range of national governments, including the GoI
ARTIP has also worked closely with ASEAN to develop training materials for use by all ASEAN members, which should enhance cross-border cooperation on trafficking matters
AusAID is also supporting the United Nations Office on Drugs and Crime (UNODC)’s Regional Program for East Asia and the Pacific, which includes combating human trafficking as a key component
AIPJ’s objectives and expected outcomes clearly support the work being done under ARTIP and the AusAID-supported UNODC regional program on human trafficking
Firstly, by working to build the capacity of prosecutorial agencies and to improve the transparency of judicial decision-making, AIPJ will directly contribute to the strengthening of the criminal justice system which administers Indonesia’s anti-trafficking laws
Secondly, by promoting human rights and the rule of law generally, AIPJ will be addressing some of the long-term, systemic factors which facilitate trafficking in persons
Other Australian Government programs
AIPJ has been designed taking into account the fact that there are several other initiatives being managed by other Australian Government agencies in Indonesia’s law and justice sector
These initiatives include, for example, a $1.3 million two-year program of assistance managed by DFAT in conjunction with The Asia Foundation to support improvements to the administration of corrective services in Indonesia
A range of other initiatives are managed by agencies such as DFAT, AFP and AGD
AIPJ’s design ensures that there is very little risk of overlap between AIPJ and these initiatives
It is hoped that the proposed whole-of-government framework mentioned above will assist initiatives to go beyond this and actively support each other
5.8 Monitoring & Evaluation Approach
The purpose of this section is to identify key principles and issues that the full monitoring and evaluation framework will be expected to address when it is developed during the inception phase of AIPJ
It provides the guiding principles that the Monitoring and Evaluation Framework (MEF) will be expected to address when it is developed
Guiding Principles
A guiding principle for the AIPJ’s monitoring and evaluation activities will be to work with, and through, Indonesian systems
There is currently no overarching monitoring system for the legal sector as a whole, and the monitoring systems in place for individual institutions are weak
Consequently, AIPJ will be expected to build the capacity of Indonesian institutions to monitor and assess their own progress towards their stated goals
In turn, this will eventually provide a sustainable basis for monitoring the long-term contribution of AIPJ to changes in Indonesia’s legal sector at the impact level
At the same time it is recognised that expectations of improvements in Indonesian systems will need to be modest
As discussed above, as part of the annual workplan, the Program Director and technical support team will support institutions proposing activities to provide a capacity assessment and capacity development plan
These will explicitly address the capacity of the institution to monitor progress against its institutional goals, and specify areas where further support is needed
The AIPJ transition program will undertake a preliminary stocktake of existing Indonesian Government monitoring systems in the legal sector, which will feed into the AIPJ MEF and enable it to be operational within the shortest possible delay
A second principle is that all quantitative data collected will be gender disaggregated, and the collection of qualitative data will make special efforts to differentiate between the views of men and women
The same considerations will apply for the collection and analysis of data in relation to people with a disability to the extent possible
Thirdly, the MEF will be expected to be a practical and implementable framework that provides timely and accessible information, and enables stakeholders to make informed decisions over the life of the program
In particular it will enable the Partnership Board, Working Committee and Program Director to incorporate lessons learned into the forward planning of the AIPJ, and maintain an informed strategic focus – in terms of activity management, the institutions with which the program engages and its strategic direction
Fourthly, the management team will be expected to undertake ongoing and frequent dialogue with AusAID on performance measurement and reporting, including assisting with AusAID’s internal reporting needs
It will be a formal responsibility of the Program Director and the ISP to ensure that all staff and contractors are aware of M&E obligations and to cultivate a culture that sees M&E as a vital tool for the continuous improvement of the program based on lessons learnt
Finally, it is recognised that the legal sector is highly complex, and effective monitoring systems to assess donor contributions to the legal sector in recipient countries are not as well-developed as in other sectors
Consequently, the MEF will specify points at which the MEF itself will be reviewed, taking into consideration emerging best practice for monitoring legal sector programs, and emerging lessons learned from working in Indonesian partner systems
It will specify how such findings will be incorporated into the revised MEF
Evaluability Assessment
During the inception phase, the Monitoring & Evaluation Specialist will be expected to conduct an evaluability assessment of the AIPJ with full stakeholder participation
This assessment will include a review of the program logic and confirm a shared understanding of end-of-program outcomes
It will also examine potential data sources, particularly those in partner government systems, and areas where AIPJ should conduct further baseline analytical work, building on that already proposed under the Legal Transition Program
The Evaluability Assessment (EA) of the Project should be conducted with full stakeholder participation
If the contractor is not familiar with these processes then they should become informed, or recruit an M&E Specialist with knowledge, of the processes involved
An EA includes, at a minimum:
a) Consultation with stakeholders to confirm a shared interpretation of the expected long-term and end of initiative outcomes;
b) A review of the program logic and description of the extent to which it is evaluable including clarity of expression of end-of-initiative outcomes in the documentation;
c) An examination of proposed/potential data sources (including partner systems) to ensure that data is of sufficient quality; is collected and analysed as expected; and will be available within the required reporting cycles;
d) An assessment of the capacity of the implementation team and partners to participate in the design and/or conduct of M&E activities;
e) A review of the budget/resources available for M&E activities;
f) Identification of reporting requirements for key stakeholders
This includes progress reporting, Quality at Implementation Reporting, and Annual Program Performance Reporting
There should be a clear recognition of how the M&E plan is expected to provide evidence for reporting against the Country Program Performance Assessment Framework
g) Identify key evaluation questions of interest to stakeholders; 
h) A review of cross-cutting issues that will need to be included in the MEF; and
i) Clear identification of issues and/or constraints that will affect the design of the M&E Framework (plan)
Significant work was done under LDF that could be used as a basis for ongoing monitoring of the program, and as important information sources in their own right
These include court based access and equity studies and case load audit, as well as operational research
These could form an important part of AIPJ baseline work
Performance Questions
The MEF will specify measures to collect AIPJ-specific information based on proposed key questions, with suitable outcome indicators
Indicative questions that will need to be considered by the MEF are given in the tables below
The MEF will specify whether such information can be gathered using Indonesian monitoring systems and the extent to which the AIPJ will need to establish separate monitoring systems
3.1 ISP performance
The ISP is expected to deliver the management services described in this design document and the Scope of Services
AusAID will carry primary responsibility for monitoring ISP performance, using information provided by the ISP through regular reporting, and drawing on feedback from a range of stakeholders
AusAID’s democratic governance team in Jakarta will monitor and register contractor performance according to AusAID’s corporate requirements, as part of the annual contractor performance assessment process, based on the following questions and means of verification
Performance Expectation – Key questions Means of Verification by AusAID
Does the ISP prepare the annual workplan in a timely fashion, based on sound, documented analysis and strong stakeholder engagement? Assessment by Democratic Governance team in AusAID of the annual workplan and feedback from stakeholders, mid-term review /evaluation
Is the ISP proactive in providing advice on activity pipeline and giving effect to AIPJ operating principles? Ongoing review and analysis of requests for activity approval against selection criteria
Is the ISP responsive to AusAID and Partner requests, within scope of strategic intent and operating principles? Assessment by AusAID of responsiveness
Are reports provided on time and to the required standard? Review of reports
Does the ISP maintain appropriate and effective relationships with stakeholders? AusAID seeks feedback directly from relevant GoI stakeholders on annual basis
Does the ISP provide pro-active timely, quality advice to AusAID on sectoral issues? Assessment by AusAID of advice provided
Is the ISP proactive in identifying and resolving issues with AIPJ progress at both Partnership and individual activity level? Assessment by AusAID of effectiveness of problem solving based on review of documentation and direct monitoring
Does the ISP control expenditure effectively, and provide timely financial reporting and invoicing? Audit, assessment of accuracy and usefulness of financial information
The MEF will also address the performance of the ISP and Program Director in the appropriate management of the activity cycle
Taken together, the above sets of questions will enable AusAID to make an overall assessment of the ISP’s performance in developing and managing an effective activity program
3.2 Governance arrangements
A range of stakeholders play a role in the management of AIPJ
Accordingly, a formal and regular assessment of those arrangements will be conducted to ensure that they are operating effectively
The effectiveness of overall governance arrangements for AIPJ – in particular the effective functioning of the decision-making bodies will be conducted through an annual review of the arrangements by AusAID, in consultation with relevant GoI stakeholders
Performance Issue Stakeholders Questions
Are stakeholders being effective in providing AIPJ with strategic direction? Working Committee and Partnership Board members? How rigorously has the annual activity workplan been assessed?  
What has been the scope and quality of input to strategic discussion by members of decision-making bodies?
How effective have the decision making processes been in balancing strategic intent with the need to be flexible in response to emerging requirements?
How efficient have decision making processes been in relation to new activities?
How effective has AIPJ oversight been in managing risks associated with program fragmentation?
To what extent have oversight bodies provided guidance to ensure the increasing coherence of the AIPJ?
Are partner agencies engaged effectively in activity implementation? Partner agencies 
Are Partner agencies actively involved in the process of developing activity proposals?
Are Partner agencies providing the resources necessary to support activity implementation?
Is the leadership (or other relevant senior staff) of Partner agencies actively involved in supporting or leading reform efforts?
The Program Director will assess the effectiveness at this level on a six-monthly basis, and include this assessment in both the progress report and annual report to the Working Committee and Partnership Board as discussed above in part 4
The questions will also be an important focus of the mid-term independent review and completion review
3.3 Activity Delivery
This level involves monitoring and evaluating the individual activities implemented through AIPJ
The Program Director, with assistance from the ISP, will carry primary responsibility for this level of M&E, with additional oversight by AusAID as necessary (on an exception basis only)
Each activity will have its own monitoring and reporting framework developed as part of individual activity designs
An important part of these designs is that they clearly indicate their proposed contribution to the higher level outcomes of the program
The ISP will develop systems and processes for activity monitoring and evaluation to be included in the Operations Handbook
Wherever feasible and appropriate, activity level M&E should be consistent with any relevant M&E systems in Partner agencies, and incorporate those systems to the extent possible
The capacity assessments conducted at the outset of engagement with individual institutions will form a solid basis for assessing the achievements of activities, and higher level outcomes
M&E functions for all activities will include:
Identifying specific outputs or results to be delivered by activities;
Identifying how those outputs or results contribute to AIPJ outcomes and their strategic value in the law and justice sector;
Specifying how monitoring of the four cross-cutting issues will be conducted;
Monitoring and managing the performance of service providers and the progress of activities;
Analyzing the achievement of the intended outputs or results, assessing their contribution to AJIP objectives, and – where relevant – comparing progress to baseline information; and
Identifying lessons learned to guide future activities and the overall implementation of the AIPJ as it evolves towards a more programmatic approach
More in-depth assessments should be undertaken for significant activities (in terms of either size, the nature of work in which they were involved, or their potential to offer important lessons for other areas of the AIPJ)
It will be the ISP’s responsibility to make recommendations about when such evaluations should be undertaken, using the Performance Fund
Activity progress will be provided at six-monthly intervals, as described above in part 4
3.4 AIPJ outcomes and contribution to achieving the objective
This level examines the achievement of AIPJ’s outcomes and objectives, and the contribution of this to AIPJ’s End of Program Goal, as discussed in Part 3 above
The Program Director, ISP, AIPJ partners and AusAID will all share responsibility at this level
At the outcome level, M&E will address both capacity and performance
As has been discussed above, a key focus on AIPJ is the development of the capacity of law and justice institutions to deliver services to the community
While the purpose of developing capacity is to improve performance, it is important that capacity and performance still be examined as distinct issues
Performance can vary over any given period of time for a range of factors including, but not limited to, changes in capacity
Monitoring performance, while obviously important, is only a proxy for monitoring capacity
A narrow focus on intended performance improvements may not capture these benefits effectively
AusAID, through its democratic governance advisor, will have overarching responsibility for a six-monthly review of the progress of the AIPJ in the broader sectoral context
The MEF will also be expected to specify how Australian Government partners will contribute to reporting on contributing to the achievement of AIPJ’s objective, following consultation with the relevant agencies
A key element to track the progress of AIPJ at the outcomes and impact level will be a high-quality survey of public perceptions
This survey is intended to cover key areas where AIPJ is hoping to make a difference, namely improved access to quality legal services and information
A baseline survey will be conducted as early as practicable once the AIPJ is mobilised, with a follow-up survey conducted at least twice more over the life of AIPJ
This survey is expected to produce information that is not only of relevance to AIPJ but also to a wider Indonesian government and non-government audience
In independent review of AIPJ will be conducted two years after the commencement of the program, and again two years later
The timing of this review will be expected to feed into the relevant annual Partnership Board meeting
These independent reviews will be contracted and managed by AusAID’s democratic governance team in accordance with its corporate guidelines for independent reviews
3.5 Cross-cutting Issues
In addition to addressing the different levels of intended outcomes under AIPJ, the M&E framework will specify the measures to assess the performance of the program against the four Cross-cutting issues: human rights, anti-corruption, partnership and policy dialogue, and performance
For each cross-cutting issue, the MEF will explain how activities across the outcomes will be monitored to inform decision-makers of possible synergies, and assess progress under each cross-cutting issue over time
It is envisaged that the annual workplan will lay out how issues in each cross-cutting issue will be progressively built on in the coming year
The rights of women and people with a disability are of particular concern
Consequently, all data will be disaggregated by gender and proposed analytical work, in particular surveys, will place a priority on being gender-sensitive
Initial analysis suggests that quantitative data concerning people with a disability is very weak
Given the importance placed on addressing the needs of people with a disability under the AIPJ, it is envisaged that the M&E framework will include a periodic evaluation or assessment of the specific issues facing people with a disability to inform activities in the area
The MEF will consider the quality of relationships and partnerships developed through AIPJ
This will focus in particular on the quality of dialogue between AusAID and other Australian Government agencies with GoI partners
Performance Issue Stakeholders Questions
Are partnerships being effectively developed?  All GoA / GoI Partners? What have been the attendance and participation rates at Partnership Board and Working Committee meetings?
What is the quality and frequency of policy dialogue between GoA and GoI institutions, both through AIPJ bodies (Working Committee and Partnership Board) and more broadly?
What has been the contribution of  partnerships to the objective and outcomes of the program? All GoA / GoI Partners? To what extent have partnerships between government agencies provided an effective contribution to achievements under AIPJ’s objective?
To what extent have institutions been satisfied with the partnerships in which they are involved?
Further issues
In addition to the above, the MEF will be expected to meet the following general quality requirements:
a) All indicators will be supported by a sound methodology, and means of verification should be fully designed
Means of verification are not reports, but actual methods required to collect the primary data
Secondary data sources are also to be used where appropriate
All tools required to collect data must be designed and included in the annexes of the MEF (for practical reasons a small number of tools may not be able to be developed during the development of the initial MEF)
The development of sound methodology usually requires specialist expertise
b) Where special evaluation studies are to be conducted, the full design should be described in the MEF with a description of the methods for data collection and analysis elaborated and tools developed
c) The achievement and quality of outputs or deliverables must be addressed
A number of output indicators are required to be reported on routinely
This could include the development of a “Fact Sheet” where key project outputs are reported against in a concise form that allows efficient monitoring and reporting of the project by AusAID staff (this is in addition to routine reporting requirements)
d) Identification of how the findings of the monitoring and evaluation activities will be disseminated and utilised
This does not refer to a reporting frequency table, but rather to what mechanisms are in place to ensure that findings are disseminated to all relevant stakeholders and that findings are likely to be responded to or utilised
e) A full implementation schedule should be included that shows when all key M&E activities will be carried out
Identification of M&E activity responsibilities (that are matched to individuals’ capacities and resources to meet them) should be included in this plan
It is recognised that AusAID will play an important role in the overall monitoring of the program
AusAID has traditionally been weak in undertaking this function and often under-resourced
The MEF will include a monitoring workplan detailing the activities, timing and resourcing required by AusAID to fulfil its monitoring and evaluation responsibilities, as well as for other significant monitoring partners where appropriate
f) There should be a complete costing (budget) of the MEF for both personnel requirements and the costs of conducting monitoring and evaluation activities
Note: The design and conduct of M&E activities needs to be supervised and directly supported by an M&E Specialist with demonstrated practical experience in M&E theory and practice; and, with post graduate training in research or evaluation methodology
5.9 Guidelines for Assistance to Civil Society under AIPJ
AIPJ recognises that Indonesian government agencies are fundamental to achieving the core objective of AIPJ and that government agencies have increasingly turned to professional justice sector civil society organisations (CSOs) to provide technical assistance in support of government reform programs
AIPJ recognises that a number of important justice sector CSOs now provide sophisticated technical advice and support to government agencies, in addition to their strengths in analytical studies and monitoring
Notable recent examples of how justice sector CSOs support government reform priorities was the drafting of both the Supreme Court and AGO reform “blueprints.”  
In other words, the Indonesian Government itself seeks out and often prefers the assistance of high quality Indonesian civil society justice sector organisations
Supporting the Indonesian Government’s justice sector reform priorities and programs through and in partnership with Indonesian justice sector organisations also ensures the long-term sustainability of justice sector reform beyond the life of AIPJ
The further development of stronger, more capable, higher quality professional justice sector organisations is envisioned as an important long-term contribution of AIPJ to the objective of improved access to quality legal services and information
The Indonesian Legal Sector Analysis  states that civil society in the law and justice sector is currently in a state of malaise due to donor organisations employing relevant CSOs as consultancies and service providers
Current donor practices which often prioritise the hiring of individuals over organisations mean that CSOs are often stripped of core personnel and left without the time and resources to undertake work critical to their sustainability and effectiveness, including:
developing secure funding bases;
improving lines of accountability to key stakeholders;
formulating goals and strategies;
establishing knowledge management systems; and
building human resource management systems
In other words, previous donor support has often engaged with justice sector CSOs not as genuine partners, but rather as consultants
Conversely, AIPJ sees independent, professional, high calibre justice sector CSOs as integral elements in successful Indonesian government justice sector reform
AIPJ will support CSOs in their key roles at the intersection between state and society, in a triangulation approach that has been widely acknowledged as one of the most successful aspects of Australia’s previous assistance to the law and justice sector in Indonesia
Mechanisms that might be appropriate to provide funding to CSOs might include core funding, and/or grant or activity funding
The managing contractor for AIPJ will be expected to specify their approach to engaging CSO expertise to achieve the program’s outcomes and to strengthening CSOs the long-term organisational capacity
5.10 Risk Matrices
Design and Management Risks
Risk Event Impact Likelihood  Consequences  Risk Treatment Responsibility
AIPJ funds many small activities across many issues/institutions No sustainable and/or meaningful impact 3 4 1.1 Ensure governance arrangements offer strategic advice capable of informing activity design and selection; ensure continual application of activity selection criteria and operating principles; use Justice Partnerships Development Fund to ring-fence other program funds from ad hoc requests; ensure proper socialisation of design, including through inception workshop
AusAID; ISP
Stakeholder disappointment due to receiving less support under AIPJ than under LDF
Key stakeholders attempt to undermine AIPJ activities 
2 3 Maintain dialogue with key stakeholders; make up-front investment in socialisation of design AusAID Jakarta (in relation to Indonesia-based stakeholders); AusAID Canberra (in relation to Australia-based stakeholders)
Governance arrangements fail to provide strategic direction to AIPJ
Effectiveness (particularly impact and alignment) of AIPJ compromised 2 3 Conduct ongoing reviews of governance arrangements, making appropriate changes to structure and/or composition of relevant boards when necessary AIP Partnership Board; AusAID; Bappenas
Women not sufficiently involved in AIPJ activities AIPJ’s impact on gender equality weakened; overall sustainability of AIPJ’s impact is compromised 2 4 Draw up and implement a gender strategy within the first three months of AIPJ’s mobilisation AusAID; ISP
Relationships with GoI are driven primarily by the ISP rather than GoA Partnership not sustainable over the long-term 3 3 Ensure that the strategic direction of the partnership is set by AusAID and Bappenas and managed by an AusAID-contracted Program Director; make significant AusAID resources available for relationship building and intellectual input into the direction of AIPJ; clarify to ISP the value of government-to-government partnerships AusAID; Bappenas; Program Director
GoI partners reluctant to engage due to the requirement that all AIPJ assistance be on-budget AIPJ unable to provide funding to key partners 2 4 Emphasise alignment of AIPJ funding with GoI priorities; emphasise benefits of relationships formed through AIPJ AusAID; ISP
High AIPJ staff turnover AIPJ activities lack continuity and relationship-building interrupted 3 3 Dedicate sufficient resources to ensure strong AusAID involvement in the management of AIPJ in order to ensure continuity AusAID; ISP
ISP relations with key stakeholders deteriorates AIPJ loses credibility and is unable to progress key activity implementation 2 4 Ensure that all key personnel in the ISP are committed to developing and maintaining strong partnerships with key counterparts, and respond  to partners’ concerns and sensitivities ISP
Operating Environment Risks
Risk Event Impact Likelihood Consequences Risk Treatment Responsibility
Changes to reform momentum in key GoI partners AIPJ unable to achieve traction with important partners 2 4 Conduct institutional assessments to form initial basis for decisions to engage and work with particular institutions
Conduct ongoing assessments of institutional capacity and openness to reform; 
shift focus between GoI agencies to support the most reform-minded agencies while maintaining dialogue with less reformist ones; 
in the event that government agencies across the board lose reform momentum, shift focus to improving civil society’s capacity to build political will for reform; 
Indonesian public perceives AIPJ as too political Key state and non-state partners reluctant to engage 
Ensure close and ongoing communication with Bappenas and other key GoI partners; ensure close alignment with GoI priorities; implement communications strategy AusAID
Deterioration of bilateral relationship AIPJ becomes politicised and unable to achieve traction with key partners 
Build strong partnerships with GoI partners, based on frank and frequent communication Partnership Board; AusAID; Bappenas
Antagonistic relationships between GoI and civil society partners Government and civil society groups are unable to work in partnership thereby reducing prospects for achieving important legal reform goals 
Look for opportunities to build and strengthen opportunities for GoI and CSO partnerships, drawing on lessons learned from LDF (including secondments from NGOs to government reform teams); participation of CSOs in governance arrangements AusAID; ISP; Partnership Board
Civil society partners become overly critical of government AIPJ perceived as undermining GoI agenda, leading to GoI partners withdrawing support 
Develop and apply strict criteria for providing assistance to civil society AusAID; ISP
Security situation in Indonesia deteriorates severely AIPJ forced to cease until security improves 1 5 AusAID to implement relevant security protocols; ISP to develop security plan AusAID; ISP
Politicisation by Australian partners given broad and extensive GoA interest in the program AIPJ becomes too ‘supply-driven’, thereby compromising its strategic assistance to the sector 
AusAID to play a pro-active, coordinating role with whole-of-government partners on program developments to ensure adequate coordination, information sharing and alignment of interests; 
AusAID to appoint a dedicated officer in Canberra and work on a broader whole-of-government strategy to ensure that Australian assistance to the sector is well coordinated and informed AusAID Canberra
Other donors do not prioritise donor harmonisation AIPJ fails to complement, or actually duplicates, other donor initiatives in the sector 2 3 Hold regular donor coordination meetings; support Bappenas to encourage greater donor harmonisation AusAID; ISP
5.11 Position Descriptions
Terms of Reference – AIPJ’s Program Director
Background
Australia has been providing assistance to the Indonesian law and justice sector for ten years, most recently through the Indonesia Australia Legal Development Facility (LDF)
In late 2010, a new five-year program, to be called the Australia Indonesia Partnership for Justice (AIPJ) will be mobilised to replace LDF as AusAID’s flagship program of assistance to Indonesia’s law and justice sector
While AIPJ will aim to build upon some of the relationships and success stories under LDF, it will involve a number of key changes to the implementation arrangements
These will include:
a more ‘hands-on’ role for the Government of Australia (GoA) and an increasing emphasis on direct relationships between Indonesian and GoA counterparts, as distinct from indirect relationships formed via sub-contractors;
greater alignment with Government of Indonesia (GoI) priorities;
more clearly defined outcomes and more strategic deployment of assistance; and
enhanced monitoring and evaluation
In order to support these new directions, AusAID will engage a Program Director for the AIPJ
The Program Director will be engaged separately from the Implementation Service Provider (ISP), and will report to AusAID
AusAID will be responsible for the overall management of the AIPJ and will take a lead role on fostering productive partnerships, policy dialogue and whole-of-government coordination
AusAID will also co-chair the governance body – the AIPJ Partnership Board
The AIPJ ISP will be responsible for providing direct assistance to the Program Director in order to facilitate his/her management of the AIPJ implementation on behalf of AusAID
The ISP will be responsible for the day-to-day management of the ISP including its staff and the technical assistance personnel that it recruits
The ISP will be responsible for its obligations under its contract with AusAID including, among other things, the provision of logistics and administrative support and the recruitment of staff and technical assistants
General responsibilities of the Program Director
The Program Director will be responsible for the strategic management and oversight of the AIPJ, working closely with the AusAID Jakarta Democratic Governance team
The Program Director will not employ personnel directly, but will oversight the ISP’s staff and technical assistants
With support from the ISP, the Program Director will lead the establishment, development and strategic implementation of the AIPJ
This will entail:
building relationships with key GoI counterparts, GoA partners and relevant civil society groups and donors in Indonesia and Australia;
staying abreast of the latest international thinking on development assistance in the law and justice sector, and ensuring that this is integrated into AIPJ’s implementation where feasible and desirable;
providing strategic advice to both GoI and GoA on sector priorities, reform dynamics and donor coordination;
providing strategic guidance over the development of activity plans for the achievement of AIPJ outcomes;
ensuring the AIPJ Monitoring and Evaluation Framework provides relevant information to inform the strategic direction of the program and builds on lessons learnt;
establishing more detailed information on the roles and responsibilities of the Partnership Board, as outlined in the AIPJ Design Document;
assisting all stakeholders to prepare for the meetings of these bodies so as to ensure maximum levels of strategic direction for AIPJ;
developing guidelines for the allocation of AIPJ funds through the ISP’s financial systems and, where possible, through GoI systems;
promoting greater coordination of GoA agencies involved in the provision of development assistance to the Indonesian law and justice sector in Indonesia, including by assisting AusAID to develop and promote the proposed Framework for Australian Assistance to Indonesia’s Law and Justice Sector;
identifying opportunities for policy dialogue between Australia and Indonesia on law and justice issues;
identifying opportunities for Australian support for improved whole-of-government coordination of law and justice sector institutions in Indonesia;
identifying opportunities for enhancing AIPJ’s use of Government of Indonesia systems (planning, budgeting, financing, auditing, etc);
ensuring AIPJ is aligned with GoI priorities; and
providing briefings to relevant GoA partners on legal development issues in Indonesia
The Program Director will also work closely with AusAID Jakarta’s Democratic Governance Team and the Democratic Governance Adviser
Reporting
The Program Director is responsible for producing six-monthly progress reports for AusAID, with assistance from the ISP
These will include:
an update on general reform dynamics in the law and justice sector, including possible implications for future AIPJ activities;
identification of potential new activities and partners;
recommendations on how AIPJ can make increasing use of GoI systems and achieve better alignment with GoI priorities
This formal report will complement regular verbal and written reporting throughout program implementation
Supervision and decision-making
The Program Director will report to and work under the direction of the Counsellor for Democratic Governance and Policy Coordination, AusAID Jakarta
The ISP will report to the Program Director, who will be responsible for managing the ISP in accordance with the terms of the ISP’s contract
The Program Director must receive appropriate approval from AusAID and endorsement from the Partnership Board for all activity proposals included in annual work plans
For approval of out-of-cycle activity proposals, the Program Director and ISP must submit proposals to AusAID for approval (with Bappenas’ concurrence) at the appropriate level once between approval cycles
AusAID will establish appropriate procedures for out-of-cycle activity approvals
Within three months of AIPJ’s mobilisation, the Program Director, in cooperation with the ISP and AusAID, will develop a set of detailed engagement protocols to inform key roles and responsibilities, principles and ways of working, communication protocols, delegations, decision-making authorities and dispute-resolution procedures
Duration
AusAID intends to engage a Program Director for the duration of the AIPJ, subject to regular performance monitoring
Location
The Program Director will be co-located with the ISP
AusAID will explore the option of the Program Director working out of the Australian Embassy with AusAID Jakarta’s Democratic Governance team for one day per week
Skills, knowledge and experience
The Program Director will have the following skills, knowledge and experience:
Required:
Masters in law or related field and at least ten years experience in the law and justice sector, including considerable time in a development context;
significant experience in a public sector or other major organisational environment, including experience and understanding of reform processes and change management;
demonstrated success in strategic planning and policy skills;
demonstrated understanding and commitment to AusAID’s approach to key development principles, including aid effectiveness, gender equality and capacity development; and
demonstrated ability to develop and facilitate constructive working relationships with colleagues, counterparts and others, including in the law and justice sector and in cross-cultural contexts
Highly desirable:
fluency in spoken and written Bahasa Indonesia; 
in-country experience in Indonesia; and 
experience working for AusAID
Advancing the health of Indonesia’s poor and disadvantaged
Indonesia’s diverse geography, large and growing population and decentralised health system has left many people, especially those in remote areas, with poor access to quality health services.
Gains in health have been made in recent years but challenges still remain. 
Indonesia has a particularly high maternal mortality rate for a middle income country, one of the fastest growing HIV/AIDS epidemics in South East Asia, and an inequitable distribution of health workers.
The Australian Government, through the aid program, is working with the Indonesian Government to improve the health of its people, particularly the poor and disadvantaged.
Australia’s assistance
Since 1987 Australia has been working with the Indonesian Government, at the local and national level, to address the health needs of Indonesians.
Australia supports the improvement of basic health services, focusing on maternal and neonatal health, HIV/AIDS, emerging infectious diseases and strengthening the health system.
Australia is committed to a long term partnership with the Indonesian Government and continuing its work within Indonesia’s health sector.
What we have achieved
The A$66 million Australia Indonesia Partnership for Maternal and Neonatal Health in Eastern Indonesia is working to reduce the high maternal and infant mortality rate.
Pregnancy and childbirth are being made safer for Indonesia’s mothers and babies with more than 5000 health workers receiving specialised training.
Every year, this partnership benefits 40 000 pregnant women and 33 000 babies.
Halting the spread of HIV
Australia and Indonesia have been working together to tackle HIV for more than 15 years. 
The A$100 million Australia Indonesia Partnership for HIV has helped 26 000 injecting drug users access clean needles, methadone treatment and other harm reduction programs.
The partnership has resulted in better HIV responses in prisons, improved access to medicines for people living with HIV and an enhanced response to HIV in the Papua and West Papua provinces, where the HIV epidemic is around 18 times greater than the national average.
Combating emerging infectious diseases
Australia has committed almost A$25 million to address the spread of emerging infectious diseases such as avian influenza and rabies.
Australia and Indonesia are working together to improve systems for detecting and controlling these diseases.
Australia has supported the Indonesian government to reduce human deaths from rabies in Bali by funding mass dog vaccination programs and a public awareness campaign. 
Animal disease surveillance and outbreak response systems have also been strengthened.
Strengthening health systems for the poor
This five-year A$50 million program will improve access to better primary health care services for more than three million poor or vulnerable women and children in Indonesia.
This program will work in five provinces and 20 districts to improve health care services through strengthening health policy, planning, budgeting and workforce issues.
For further information about AusAID’s health program in Indonesia please visit:
www.ausaid.gov.au/country/indonesia/health.cfm
Reducing the impact of natural disasters
The Australia-Indonesia Facility for Disaster Reduction (AIFDR) is a joint initiative between the governments of Australia and Indonesia. 
The Facility works to strengthen Indonesia’s ability to reduce the impact of disasters. 
We aim to save lives, protect livelihoods, safeguard development gains and reduce the cost of disasters.
Indonesia is one of the most disaster prone countries in the world. 
with over 120 active volcanoes and more earthquakes than any other country. 
While little can be done to stop natural disasters from occurring, their impact can be lessened. 
Volcanic eruptions, earthquakes, tsunamis, floods and landslides kill thousands of people every year in Indonesia and leave more than 80,000 homeless. Disasters push communities back into poverty. 
Mapping hazard areas, creating community evacuation routes, planting flood and drought resilient crops, building safer homes and schools and running community education programs are steps communities can take to better prepare, cope and recover from natural disasters.
The Facility uses science to better understand the risks. 
Together, Australian and Indonesian experts develop risk assessment tools and information to inform communities and governments of the risks they face and how to protect themselves.
The Facility is at the forefront of international efforts to encourage greater investment in disaster risk reduction. 
The Facility is delivered through the Australian Agency for International Development (AusAID) and the Indonesian Agency for Disaster Management, BNPB (Badan Nasional Penanggulangan Bencana). 
We work closely with the Association of Southeast Asian Nations (ASEAN) and United Nations agencies. 
At the local level, we partner with Indonesian communities, faith-based and non government organisations.
What we have achieved 
Build Back Better 
More than 80 per cent of people are killed during earthquakes by collapsing buildings. 
Following the 2009 Padang earthquake, the Build Back Better community awareness campaign was developed and launched. 
Through radio and television, advertisements and community discussions, the importance of rebuilding safer homes was raised. 
A video explaining the small changes that make houses more resilient was distributed to people in West Sumatra. Safer homes are now being built as a result.
Hazard mapping 
Working with Indonesia’s best earthquake scientists and the Indonesian Government, an earthquake hazard map was produced. 
This information identified an increase in the level of risks across Indonesia and in areas previously thought safe. 
We are working with the Indonesian Government and universities to ensure the map assists with disaster planning and is improved as we learn more about earthquakes. 
This mapping supports local governments and communities to identify risks and take action to better protect themselves. 
Indonesian geologists are developing and using new tools to map the potential impact of volcanos and the spread of volcanic ash. 
Depending on weather patterns, we can estimate the size of ash clouds and where they might fall. This helps better prepare for and reduce the impact of volcanic eruptions.
Turning knowledge into action 
We promote action through a grants program for community and civil society organisations working to reduce disaster risks across Indonesia. 
A grants program is provided for academic and research institutions that addresses gaps in disaster risk reduction knowledge and disaster management. 
Disaster reduction training is held for journalists who play an important role in informing communities on how to prepare for disasters.
For more information about the AIFDR visit www.aifdr.org
The Australian aid program in Indonesia
Working together to reduce poverty
Who we are
The Australian Government aid program, AusAID, is working to help people overcome poverty. 
In Indonesia, currently around 30 million people live below the national poverty line and tens of millions just above it. 
This means any shock, such as a natural disaster or an economic downturn, could be devastating.
Australia works with the Indonesian Government at the district, provincial and national level to improve education, healthcare, infrastructure, livelihoods, governance, respond to disasters and protect the environment.
This aid partnership is Australia’s largest with a commitment of up to A$2.5 billion between 2008–13.
Australia and Indonesia have been friends and partners for many years. 
This friendship is based on a long standing political relationship between neighbours, tourism, regional safety and stability, and a shared interest in helping each other.
What we do
The Australian aid program is committed to helping the poor, sick, disabled, vulnerable women and children. We fund significant initiatives that:
increase access to schools and higher education
improve health and reduce the spread of HIV/AIDS
boost economic growth through infrastructure development and improved economic management
provide support to protect the poor and vulnerable from shocks
improve democracy, justice and good governance
provide humanitarian assistance following natural disasters
protect the environment
How we do it
The Australian aid program works with the Indonesian Government to improve the planning and delivery of services and provides funding for development activities.
We depend on the expertise of many partners to help with our work, including local and international non-government and not-for-profit organisations, and international agencies.
What we have achieved
Several thousand junior secondary schools have been built in poor and remote areas across Indonesia, enabling a further 300 000 children go to school
Australia is supporting Indonesia’s national poverty reduction program that is reaching 80 000 villages across Indonesia
Maternal and neonatal health has improved in East Nusa Tenggara with more than 5000 health workers and community health volunteers receiving specialised training and 24 birthing wards in public health clinics have been renovated to provide basic emergency obstetric care
In one year, 82 000 poor urban households have been provided with clean water and/or sewerage connections
Australia has helped Indonesia in strengthening the National AIDS Commission, shape HIV policy, implement needle exchange and methadone programs, develop a better HIV response in the prison system and raise community awareness of safe sex practices
Australia has helped improve access to justice for the poor and marginalised living in remote areas
4800 people have received assistance to re-establish their livelihoods following the 2010 Mt Merapi eruptions
Over the last two years, 27 000 people have been exposed to new farming systems which have resulted in household incomes increasing by 174%
Australia is providing more than 300 scholarships to Indonesians each year. 
This number will increase to 500 by year 2014
The Australia Indonesia Basic Education Program was developed in 2005 in response to the Boxing Day Tsunami. 
Its focus was to help Indonesia sustain progress against its goals in the education sector. 
With a total value of $387 million over five years, the program aims to bring quality education to more than 330 000 children across 20 of Indonesia’s 33 provinces.
The centrepiece of the initiative is an ambitious program of school building. 
By the time the program is complete in June 2010, 2075 schools will have been constructed—including 500 madrasah.
The program exemplifies four features of Australia’s aid partnership with Indonesia. 
First, it is targeted where needs are most pressing. 
In the case of the Australia Indonesia Basic Education Program, that is the Junior Secondary Level, or Grades 7-9. 
This is where the Government of Indonesia has been concentrating its efforts to improve access to education.
Second, the program is innovative. 
The schools have been built by local committees drawn from the villagers whose children will attend the schools. 
Inspections show the quality of these school buildings has been excellent—those built around Tasikmalaya survived the recent earthquakes. 
Additionally, the cost of building schools has been kept down, so more have been built.
Third, the Australia Indonesia Basic Education Program has been delivered on time and to specifications. 
Indeed, so strong has the management of the building process been that a further 75 schools have been built over the original target of 2000.
Finally, the Australia Indonesia Basic Education Program has seen an exceptional level of cooperation between the aid program and Indonesian government agencies.
The schools will provide an enduring symbol of the closeness of our two nations and of Australia’s determination to support Indonesia’s commitment to provide quality education for all its children.