Navigate Up
Sign In

Indonesia

Overview of Australia’s aid program to Indonesia

2013/14 Estimated Outcome: $574.1 million

2014/15 Budget Estimate: $605.3 million

Australia’s aid program to Indonesia is designed to support prosperity, stability and security in one of our closest neighbours. The program includes a range of investments designed to promote sustainable economic growth, good governance and stability. Indonesia is a large middle-income country with great potential; the aid program aims to help it fulfil it. But because our aid program is dwarfed by the scale of Indonesia’s economy, we do not aim to achieve impact by simply adding to Indonesia’s resources. Rather, we seek to add value to Indonesia’s efforts. We do this by selecting issues that are important to the Government of Indonesia and by providing high quality, flexible and responsive assistance. We focus on strengthening institutions and infrastructure to ensure Indonesia provides an environment receptive to trade and investment, while also developing its human capital, particularly women and girls. In March 2014 we agreed with the Indonesia Government to develop a new partnership strategy, which will come into effect during 2015. This strategy will reflect our priorities but will also work towards the goals Indonesia has set for itself in its Medium Term Development Plan.

Indonesia is one of Australia’s closest neighbours and faces increasingly complex development challenges. Like other developing countries, Indonesia has had recent success achieving economic growth but is still afflicted by poverty. More than 105 million Indonesians live on less than US$2 per day. Indonesia remains vulnerable to shocks, like a natural disaster or an economic downturn, that could have devastating effects. An Indonesian woman is 30 times more likely to die in childbirth than an Australian woman and one in three children under the age of five suffer from stunting, caused by malnutrition. About 120 million Indonesians do not have access to safe drinking water while about 110 million do not have adequate sanitation.

We have a strong track record of working together with Indonesia to deliver results that have contributed to economic growth and reduced poverty. We will continue to build on this partnership, identifying areas where Australia can support Indonesia’s own programs. In order to improve Indonesia’s ability to deliver better results, the aid program is moving away from direct service delivery and toward providing systems strengthening, innovation and strategic technical assistance.

The major areas of focus of the program are: helping Indonesia address acute infrastructure bottlenecks; improving economic and social governance to help Indonesia get its policy settings right and provide the foundation for higher growth and trade; supporting the Indonesian Government to provide better health and education services; and building capacity and people-to-people links through the Australia Awards. We work in the following sectors:

Health

Australia is working with Indonesia to address the health needs of women and children, tackle HIV, malaria and emerging infectious diseases, and to improve its health systems. We are also assisting it to plan for the long term by strengthening its public health policy and budgetary capacity.

Health assistance in Indonesia

Education

Australia has a long history of working to improve Indonesia’s education sector, which is crucial to its future economic development. Our current program is providing thousands of new school places, while also working to improve school administration quality.

Education assistance in Indonesia

Economic governance

Australia has provided support to Indonesia’s law and justice sector for over 10 years, helping develop robust legal and justice systems, well-run elections and an active civil society. The aid program is also assisting the Indonesian government to strengthen its ability to formulate and implement economic and budgetary policy.

Infrastructure

Australia is working with Indonesia to build, maintain and improve infrastructure services focusing on the road, transport and water and sanitation sectors. We provide grants, loans and technical advice to ensure that infrastructure reaches the people who need it, improving health results and promoting economic and social development.

Infrastructure assistance in Indonesia

Disaster Risk Reduction

Australia is working with Indonesia to prepare for and prevent disasters, through the Australia-Indonesia Facility for Disaster Reduction. In partnership with Indonesia’s National Disaster Management Agency, we have produced world-class response tools and helped develop national policy.

Disaster risk management in Indonesia

Social Development

Our social development program works with the Indonesian Government to protect the poor from economic shocks, send poor children to school and help families access health services. We’re also promoting women’s leadership in business and politics, increasing the capacity of women to participate in building Indonesia’s economy.

Social development assistance in Indonesia

Rural Development

Nearly two-thirds of Indonesia’s poor live in rural areas and depend on agriculture to make a living. The Australian and Indonesian governments are working together to improve the incomes of farmers, through improving cultivation techniques, materials and access to business opportunities.

Rural development assistance in Indonesia

Governance

Australia is working to support Indonesia’s decentralization efforts by helping local governments improve the way they deliver basic services such as education, health, water and sanitation. The program also provides policy and strategic planning advice to the national government on its bureaucratic reform agenda.

Governance assistance in Indonesia

Our results

During 2013-14, thanks to Australian aid in Indonesia:

  • More than 97,000 births were attended by skilled birth attendants
  • 1,734 classrooms were built or upgraded and more than 234,000 students were provided with financial or nutritional supports
  • 296 kilometers of roads were constructed, rehabilitated or maintained and more than 2.8 million poor women and men received access to social transfers such as cash or food
  • More than 494,000 people were provided with increased access to safe water and more than 69,000 with increased access to basic sanitation

Related documents

Disaster risk management in Indonesia

Overview

Indonesia is one of the most disaster-prone countries in the world, threatened by earthquakes, volcanos and tsunami, as well as regular flooding during the rainy season. Through the Australia–Indonesia Facility for Disaster Reduction (AIFDR), Australia provides international best practice disaster science with Australia’s robust disaster preparedness systems and experience in community-based disaster risk management. In partnership with Indonesia’s National Disaster Management Agency (BNPB), this has produced world-class technological tools for disaster managers, helped to develop national policy and DRM systems, and supported innovative programs for safer communities.

Read the Humanitarian Action Policy 2011

Related initiatives

Australia-Indonesia Facility for Disaster Reduction

$67 million, 2008-2014

The Australia-Indonesia Facility for Disaster Reduction (AIFDR) is a joint Australian-Indonesian initiative that aims to strengthen national and local capacity in disaster management and create a more disaster resilient region. AIFDR uses Australian and Indonesian scientific expertise to identify and define natural disaster hazards in Indonesia, and works closely with Indonesia’s National Disaster Management Agency (BNPB) and to improve hazard modelling and develop tools such as real time earthquake shakemaps. These activities complement AIFDR’s suite of disaster management capacity building and community resilience programs at the national and sub-national level.

Related documents*
Name of document Year published Type
Australia-Indonesia Facility for Disaster Reduction Design Document 2009 Design
Australia-Indonesia Facility for Disaster Reduction Independent Progress Review 2012 Progress review
Management response to the Australia-Indonesia Facility for Disaster Reduction Independent Progress Review 2012 2012 Management response
Australia-Indonesia Facility for Disaster Reduction Brochure 2011 Brochure
Related links

Australia's Disaster Risk Reduction Policy

 

Australia-Indonesia Facility for Disaster Reduction Website

Emergency response and recovery

Australia delivers humanitarian assistance to Indonesia through monitoring of disasters, undertaking response planning and preparedness measures, and maintaining a credible, skilled response capability. Australia also supports Indonesian disaster preparedness, including strengthening the national disaster response framework and disaster recovery activities.

Related documents*
Name of document Year published Type
Mount Merapi Recovery Program in Indonesia Final Report 2011 Report
PLAN International – Psychosocial Intervention for Mount Merapi Recovery Project (PIMR Project) January-December 2011 2011 Report
SURFAID International in Indonesia – Mentawai Island Emergency Response and Emergency Recovery Program 2011 Report
Schools Reconstruction Program in West Java and West Sumatra – Independent Completion Report – June 2011 2011 Evaluation report
Schools Reconstruction Program in West Java and West Sumatra – Independent Completion Report Management Response – June 2011 2011 Management response
Padang Pariaman Health Facilities Reconstruction Program – Independent Completion Report 2012 Report
Yogyakarta –Central Java Community Assistance Program – Independent Completion Report 2010 Report
Independent Evaluation of Yogya-Central Java Community Assistance Program – Management response and learning and dissemination plan 2013 Management response

Education assistance in Indonesia

Overview

Australia has a history of successful engagement in Indonesia’s education sector, ranging from improving basic education services to providing scholarships. Indonesia is working to ensure that by 2015 every Indonesian child receives at least nine years of basic education, increasing to twelve years by 2020. While Indonesia has made good progress towards this goal, challenges remain.

Australia is helping Indonesia ensure more children can access education by creating new school places in the country’s poorest and most remote districts. We are also working with school principals to strengthen their management skills and with education officials to better manage their education budgets. Australia is also supporting the improvement of education quality in Islamic schools, known as madrasah, which provide education to around 20 per cent of Indonesia’s children.

Read Promoting Opportunities for All – Education

Related initiatives

Australia’s Education Partnership with Indonesia

$524 million, 2011-2016

Australia’s Education Partnership is constructing or expanding junior secondary schools to create new school places. The program is also developing a national system to improve school management and leadership through ongoing professional development in 250 districts, assisting 1,500 Islamic schools to improve their quality against national standards, improving systems that will provide ongoing support to Islamic schools’ quality, and supporting national evidence-based policy and programming through access to expertise for education reform driven by Indonesia.

Related documents*
Name of document Year published Type
Australia Indonesia Basic Education Program: Independent Completion Report, May 2010 2010 Evaluation Report
Australia’s Education Partnership with Indonesia – Frequently asked questions 2012 FAQ
Learning Assistance Program for Islamic Schools (LAPIS) Independent Completion Report 2010 Evaluation Report
Australia’s Education Partnership with Indonesia – design document 2010 Design
Australia’s Education Partnership with Indonesia – Annual Partnership Performance Report 2012 2012 Evaluation Report
Australia’s Education Partnership with Indonesia – Management response to the Annual Partnership Performance Report 2013 Response
The impact of Australia’s investment in Indonesia’s basic education system: some preliminary studies 2011 Study
Schools Reconstruction Program in West Java and West Sumatra – Independent Completion Report – June 2011 2011 Evaluation Report
Schools Reconstruction Program in West Java and West Sumatra – Independent Completion Report Management Response – June 2011 2011 Response
Related links

Building Relations Through Intercultural Dialogue and Growing Engagement (BRIDGE)

$3.6 million, 2011-2015

The BRIDGE School Partnerships Project connects Australian and Indonesian teachers, students and school communities. BRIDGE strengthens English and Indonesian language skills and builds intercultural understanding between teachers and students in Australia and Indonesia through face-to-face and online collaboration. Since its inception in 2008, the project has grown to include 112 Australia–Indonesia school partnerships.

Related links

Australia and UNICEF Rural and Remote Education Initiative for the Papuan Provinces

$12.2 million, 2014-2016

The education indicators for Papua and West Papua, are significantly below other parts of Indonesia. The Rural and Remote Education Initiative for Papuan Provinces focuses on improving literacy and numeracy of children in rural and remote regions.

Governance assistance in Indonesia

Overview

Robust legal and justice systems, well-run elections and an active civil society are important for strengthening democracy, reducing inequality and alleviating poverty. Australia has provided support to Indonesia’s law and justice sector for over 10 years, focusing on supporting Indonesian efforts to eradicate corruption and improve access to justice for poor and marginalised groups.

Australian assistance is also helping to strengthen electoral management bodies and electoral laws and provide targeted support for local and national elections. This assistance is contributing to Indonesia’s ability to manage peaceful transitions of power, build public confidence in elections and the democratic process, and ensure that citizens are represented in government policy and decision-making.

Australia is supporting Indonesia’s efforts in decentralisation. Moving responsibility for many services from the national government to regional or local governments and agencies has been a key feature of Indonesia’s transition to democracy. This allows the delivery of services like health and education to be more responsive to the needs of local communities. Australia is assisting Indonesian local governments, so they can better manage resources and provide better services. Australia is also building on successful initiatives in the poorest regions of Indonesia, particularly eastern Indonesia, and post-tsunami work in Aceh. We are supporting villagers to better interact with government and encouraging local government to be more responsive through improved administration, consultation and transparent budgeting.

Australian assistance is working with key Indonesian Government agencies to support improved economic management. Our support helps Indonesia get its policy settings right to maximize economic growth and drive poverty reduction.

Related initiatives

Australia Indonesia Partnership for Economic Governance (AIPEG)

$71 million, 2009-2016

The Australia Indonesia Partnership for Economic Governance (AIPEG) provides support to Government of Indonesia agencies responsible for economic management in order to promote the growth and stability of the Indonesian economy. Key areas of focus include: Market competitiveness, financial stability and development, revenue mobilisation, quality of spending.

Related documents*
Name of document Year published Type
Australia Indonesia Partnership for Economic Governance Facility Design document and annexes 2009 Design
Australia Indonesia Partnership for Economic Governance Independent Progress Report 2011 Design
Independent Progress Report for the Australia Indonesia Partnership for Economic Governance – Management Response 2011 Management Report

Government Partnerships Fund

$50 million, 2010-2016

The Government Partnerships Fund (GPF) is a whole-of-government program that facilitates and strengthens government-to-government partnerships and policy dialogue between Australia and Indonesia in the pursuit of improved economic and public sector governance. GPF provides Indonesian agencies with access to the institutional knowledge of Australian Government agencies experienced in economic and public sector reform. There are currently thirteen partnerships in place between Australian and Indonesian government agencies.

Related documents*
Name of document Year published Type
Australia Indonesia Government Partnerships Fund Phase II 2010-15 design document 2010 Design

Australia Indonesia Partnership for Justice Program

$55 million, 2011-2015

The Australia-Indonesia Partnership for Justice works with key Indonesian justice institutions and civil society partners to increase access to justice for marginalised groups (particularly women who are poor, people with disability and vulnerable children) and to combat corruption. This includes valuable peer-to-peer exchanges with Australian legal institutions. With Australian support, Indonesian courts are taking less time to deliver judgments and are making written reasons for their decisions available for free to the public online. Australia has also helped Indonesia establish its first national legal aid system, under which poor individuals are accessing free legal advice and representation to help them resolve a range of criminal and civil disputes.

Related documents*
Name of document Year published Type
Australia Indonesia Partnership for Justice design document 2010 Design
Australia Indonesia Partnership for Justice – First Independent Progress Review Report 2012 Evaluation Report
Management response to the First Independent Progress Review of the Australia Indonesia Partnership for Justice 2013 Management Response
AIPJ Baseline Study on Legal Identity: Indonesia's Missing Millions 2014 Study
Ten Years of Court-to-Court Partnership: Assessing the Impact of Australian Engagement on Judicial Reform in Indonesia 2014 Study
Australia Indonesia Partnership for Justice – Second Independent Progress Review Report 2014 Evaluation Report
Management response to the Second Independent Progress Review of the Australia Indonesia Partnership for Justice 2014 Management Response
Australia Indonesia Partnership for Justice – 2014-15 Activities Work Plan 2010 Design
Related links

Australia Indonesia Electoral Support Program

$22.8 million, 2011-2015

The Australia Indonesia Electoral Support Program builds on Australia’s support for the 1999, 2004 and 2009 elections in Indonesia. The program aims to enhance the quality of Indonesia’s elections by helping Indonesian organisations improve the management of elections, and increasing public engagement in electoral processes. The assistance contributes to the entrenchment of good democratic systems in Indonesia and Indonesia’s ability to manage peaceful transitions of power. The program provides support throughout the electoral cycle, including the national elections in 2014 and the rolling program of elections for provincial governors and district heads.

Related documents*
Name of document Year published Type
Independent Completion Report – Australia Indonesia Partnership for Electoral Support – Interim Program 2011 Program
Independent Evaluation of the Australia-Indonesia Partnership for Electoral Support 2010 – Management Reponses 2011 Management Response
Australia Indonesia Electoral Support Program 2011-2015 Final Design Document 2012 Design
Related links

Institute for Peace and Democracy

$1.75 million, 2013-2015

Australia partners with Indonesia’s Institute for Peace and Democracy (IPD) to support Indonesia’s efforts to share its experiences and lessons learned on democracy and peace with other Asian nations on the journey of democratic reform. IPD focuses on the practical implementation of democracy, its systems, processes and stakeholders, and supports the various groups who are actively engaged in advancing democracy. IPD also implements the agenda of the Government of Indonesia’s Bali Democracy Forum between annual meetings. DFAT funds IPD to share knowledge, train and equip a range of individuals who are actively engaged with democracy building, including those that work for parliament, media, and civil society.

Related links

The Institute for Peace and Democracy

Australia Indonesia Partnership for Decentralisation

$70 million, 2010-2015

Many government services, such as schools, health centres, local roads, water and sanitation are provided by district governments in Indonesia. Australia is working to improve the way district governments provide these essential services in some of the poorest areas of Indonesia, including East Java, East Nusa Tenggara, West Nusa Tenggara, Papua and West Papua. We are working to improve the way local governments plan, budget and evaluate priority programs, and are also supporting policy dialogue and capacity development for key central ministries. Australia is also working with communities, local parliaments and media to ensure that the people receiving those services have a stronger role in monitoring the programs and can hold their governments to account for the quality and reach of these services.

Related documents*
Name of document Year published Type
Strengthening Indonesia’s Decentralisation (English and Bahasa) 2012 Overview
AIPD Delivery Strategy 2010-2015 2010 Strategy
Strategy towards achieving gender equality through the AIPD program 2011 Strategy
AIPD Monitoring and Evaluation Plan 2011 Plan
AIPD State of the Program Report 2011 Report
State of the Program Report mid-2013 2013 Report
Technical Support Facility Brochure 2013 Brochure
State of the Program Report end-2013 2013 Report

Bureaucratic Reform Initiative (BRI)

$11.8 million, 2010-2015

The BRI focuses on assisting the Ministry of Administrative Reform to get its policy settings right and supports the implementation of the National Bureaucratic Reform Agenda. It is also working to improve civil society engagement to raise public awareness and strengthen the capacity of organisations to provide oversight of the reform process. A bureaucratic reform “hub” generates evidence and analysis relevant to specific reforms, promotes greater coordination among DFAT’s aid investments and draws together the various Indonesian entities working on reform issues.

Related documents*
Name of document Year published Type
Australia’s Support to the Government of Indonesia 2012 Independent Progress Review
Support for the Implementation of the Bureaucratic Reform Agenda in the State Ministry for Empowerment of State Apparatus and Bureaucratic Reform 2012 Design document
Bureaucratic Reform Sector Analysis 2012 Report
Reform the Reformers Quarterly Report 2014 Report
Concept Note: Scale up of the Reform of the Reformers Continuation Program 2014 Concept Note

Australian-Indonesian Partnership for Pro-Poor Policy: Knowledge Sector Initiative (AIP4)

$97.7 million, 2013-2017

In order to deliver development benefits for its 107 million poor, Indonesia needs sound public policies supported by rigorous research and analysis. However, lack of demand from policy makers, inadequate sustained funding, and uneven technical capacity in Indonesian think tanks has resulted in little policy-relevant research emerging from domestic sources. Australia and the Indonesian government have developed the Australia-Indonesia Partnership for Pro-Poor Policy: Knowledge Sector Initiative to address these issues by stimulating the production and use of quality research and analysis for policy decision-makers.

Related documents*
Name of document Year published Type
Overview of the Indonesian Knowledge Sector 2010 Report
Proposed “Revitalising Indonesia’s Knowledge Sector for Development Policy”: Design Document 2012 Design document
Revitalising Indonesia’s Knowledge Sector for Development: Concept Note as at October 2009 2009 Concept note
Study of Knowledge Needs and Supply Constraints for gender research in Indonesia’s knowledge Sector 2011 Study
The political economy of policy-making in Indonesian – Opportunities for improving the demand and use of knowledge 2011 Study
Independent Review of Supply Side Organisations and Government Intermediaries – Knowledge Sector Pilot Supply Side 2013 Evaluation Report
Independent Review of the Knowledge Sector Supply Side Pilot (TAF Pilot) – management response 2013 Response document
Independent Review of Supply Side Organisations and Government Intermediaries – Literature Review 2013 Review
Independent Review of Supply Side Organisations and Government Intermediaries – Think Pieces 2013 Review

Health assistance in Indonesia

Overview

Australia is working with Indonesia to address the health needs of women and children, tackle HIV, tuberculosis and emerging infectious diseases and improve health systems. Australia is helping Indonesia strengthen public health policy, planning and budgeting. This will improve essential primary health care services and make them more accessible and affordable for Indonesia's poor. Australia is also supporting Indonesia's efforts to improve health facilities, train healthcare providers, and raise public awareness of maternal and child health services. Australia’s funding also helps tackle HIV through needle exchange, methadone and safe sex programs and through expanding access to antiretroviral treatment in Indonesia’s Papuan provinces.

Advancing the health of Indonesia’s poor and disadvantaged

Saving lives – Australia’s aid to women and children

Related initiatives

Australia Indonesia Partnership for Maternal and Neonatal Health (AIPMNH)

$81.5 million, 2009-2015

AIPMNH works with village health clinics and hospitals in Nusa Tenggara Timur, supporting improved access, quality and demand for maternal and newborn health services. We support the province and its districts to increase the proportion of births in adequate health facilities, make maternal and newborn health higher priorities in annual district budgets and improve the management of health clinics’ operational budgets and health and birth insurance.

The program also helps to build community awareness of the services available at health facilities. Close to 180,000 pregnant women and 139,000 babies benefited from this program during the period between 2009 and 2013. The program has contributed to a 35 per cent reduction in maternal deaths in the province between 2009 and 2013, when the national maternal mortality ratio has increased.

Related documents*
Name of document Year published Type
Australia Indonesia Partnership for Maternal and Neo-Natal health – design document 2008 Design
Australia Indonesia Partnership for Maternal and Neonatal Health (AIPMNH) – Independent Progress Report 2010 Evaluation report
Management Response to the Australia Indonesia Partnership for Maternal and Neonatal Health (AIPMNH) Independent Progress Report 2010 Response
Related links

Australia Indonesia Partnership for HIV

$128.5 million, 2008-2016

The Australia Indonesia Partnership for HIV supports Indonesia’s national goals of preventing and limiting the spread of HIV, improving the quality of life of people living with HIV, and alleviating the socio-economic impacts of the epidemic. It currently operates at the national level and in nine provinces: DKI Jakarta, West Java, Banten, Central Java, Yogyakarta, East Java, Bali, Papua and West Papua. The partnership also supports another five provinces through various national programs.

The program has contributed to a reduction in HIV prevalence among people who inject drugs in Indonesia’s major cities from 52 per cent to 41 per cent between 2007 and 2011 and an increase in antiretroviral treatment coverage in the Papuan provinces from 3 per cent of the eligible population in 2010 to 32 per cent in 2014.

Related documents*
Name of document Year published Type
Subsidiary Arrangement between Government of Australia and Government of Indonesia relating to the Australia Indonesia Partnership for HIV 2008 Agreement
Australia-Indonesia Partnership for HIV 2008-15 2007 Program design
Review of Australia-Indonesia Partnership for HIV Independent Progress Report 2007 Progress report
Management response to the Review of Australia-Indonesia Partnership for HIV Report 2007 Management response

Australia Indonesia Partnership for Health Systems Strengthening (AIPHSS)

$50 million, 2012-2017

Australia is supporting the Indonesian Government to improve its national health system so it can deliver better care, particularly to poor women and children. The AIPHSS focuses on health financing, human resources for health, health sector governance and primary health care. The program provides valuable technical support for Indonesia’s ambitious rollout of universal health coverage by 2019.

Related documents*
Name of document Year published Type
Indonesia Health Systems Strengthening design document 2011 Design
Related links

Australia Indonesia Partnership for Emerging Infectious Diseases: Animal Health

$22 million, 2010-2014

The Australia Indonesia Partnership for Emerging Infectious Diseases - Animal Health Program is improving the Indonesian animal health system to prevent, detect and control emerging infectious diseases, including human diseases that originate from animals. The program builds on previous Australian support for the emergency response to highly pathogenic avian influenza.

The program is building Indonesia’s capability to control endemic diseases (such as rabies, avian influenza, and brucellosis) that adversely affect rural livelihoods and human health in Indonesia.

The program is improving national policy, coordination across different levels of government, and technical skills.

Related documents*
Name of document Year published Type
Australia-Indonesia Partnership for Emerging Infectious Diseases – Animal Health Program 2010-2014 – design document 2010 Design
Australia-Indonesia Partnership Emerging Infectious Diseases Program – Animal Health – Scoping Mission Report 2009 Report

Infrastructure assistance in Indonesia

Overview

Australia is working with Indonesia to build, maintain and improve infrastructure services focusing on the road, transport and water and sanitation sectors. Investments in infrastructure create the right conditions for increased economic growth and improved health outcomes.

The Eastern Indonesia National Roads Improvement Project (EINRIP) is supporting major national road and bridge improvements to promote economic and social development in Eastern Indonesia. EINRIP supports 20 major road projects across 9 provinces, totaling 395 km of national roads and some 1,300m of fabricated steel bridge structures. The Indonesia Infrastructure Initiative facility supports the Indonesian government to address constraints to infrastructure investment and enable efficient and effective infrastructure service delivery. The Water and Sanitation Grants and the Provincial Road Improvement and Maintenance Programs use an innovative output-based approach where the local government only receives the grant after independent verification that pre-agreed criteria have been met and road maintenance or water/sanitation connections have been made.

Read Improving Indonesia’s Infrastructure

Related initiatives

Indonesia Infrastructure Initiative (IndII) Facility

$463 million, 2008-2015

The IndII facility supports the Indonesian government to address constraints to infrastructure investment, such as delays and high costs to freight due to congestion on roads and railways, energy shortages, and uncompetitive technologies, and enable efficient and effective infrastructure service delivery. IndII focuses on water and sanitation, roads and transport, and cross-cutting policy and regulations.

IndII oversees the Water and Sanitation Grants and the Provincial Road Improvement and Maintenance Programs. IndII also provides technical assistance in response to requests from Indonesian government agencies. IndII has provided experts to undertake feasibility studies, cost-benefit analyses, planning documents, engineering and architectural designs, project evaluations, and training on important infrastructure projects.

Related documents*
Name of document Year published Type
Indonesian Infrastructure Initiative Program Design Document 2007 Design
Indonesia Infrastructure Initiative – Report on Quality at Entry and Next Steps to Complete Design 2007 Quality at entry report
Indonesia Infrastructure Initiative (IndII) Monitoring and Evaluation Plan 2009 Plan
Communication and Visibility Strategy – Australia support for infrastructure development in Indonesia 2010 Strategy
Indonesia Infrastructure Initiative Phase II Implementation Document (July 2011 – June 2015) Workplan and Annexes 2012 Workplan
Indonesia Infrastructure Initiative (IndII) Facility Extension Assessment Mission 18 to 28 October 2010 – Mission Report 2010 Report
Indonesia Infrastructure Initiative Program Fast Facts 2013 Fact sheet
Indonesia Infrastructure Initiative Program Impact Assessment Team Mission 1 Report 2014 Report
Indonesia Infrastructure Initiative Program Impact Assessment Team Mission 1 Report: Management Response 2014 Management response
Related links

Eastern Indonesia National Road Improvement Project (EINRIP)

$336 million, 2005-2014

EINRIP is supporting major national road and bridge improvements in Eastern Indonesia. EINRIP will support 20 major road projects across nine provinces, totaling 395 km of national roads and some 1,300m of fabricated steel bridge structures. Australia is providing a concessional loan of up to $300 million for construction works and supervision. This is supported by an additional $36 million for high quality road engineering designs and a program of technical and financial auditing to ensure roads are constructed to a high standard.

Related documents*
Name of document Year published Type
Eastern Indonesia National Roads Improvement Project: Program fast facts 2013 Fact sheet
EINRIP design document 2007 Design document
Eastern Indonesia National Roads Improvement Project (EINRIP) activity completion report 2009 Activity report
EINRIP Project Preparation Consultant Independent Completion Report 2009 Completion report
EINRIP – Projection Preparation Consultant Independent Completion Report – Management Response 2009 Management response
Anti-Corruption Action Plan for the Eastern Indonesia National Roads Improvement Project 2007 Plan
EINRIP Guidelines for Implementation of Environmental and Social Safeguards 2007 Guidelines
EINRIP project management manual 2001 Manual
EINRIP Independent Progress Review – Final Report 2012 Report
Related links

Water and Sanitation Grants Program

$95 million, 2012-2015

The Water and Sanitation Grants Program aims to increase water and sewerage connections across Indonesia by helping local governments boost investment in water and sanitation infrastructure. The program uses an innovative approach where local governments are reimbursed up to 45 per cent of the connection costs following verification that each new connection has functioned for at least three months. The program is working with 125 local governments to deliver 250,000 new water and 9,000 sewerage connections. This will benefit 1.2 million people from predominantly low-income families. Women, people with disabilities and the elderly are significant beneficiaries, with many experiencing improved health and productivity benefits.

Related documents*
Name of document Year published Type
Indonesia Urban Household Water Supply and Sanitation Program – Direct Funding Agreement 2010 Agreement
Indonesia Urban Household Water Supply and Sanitation Program – Agreement with USAID 2011 Agreement
Indonesia Water and Sanitation Initiative – Phase 1 Concept Note 2009 Concept note
Indonesia Development Cooperation Report 2010 Report
Indonesia Water and Sanitation Initiative – Phase 2 Concept Note 2011 Concept note
Indonesia Water and Sanitation Initiative – Independent Evaluation and Final Report 2011 Evaluation report
Indonesia Water and Sanitation Initiative – Independent Evaluation and Final Report: Management Response 2012 Management response
Related links

Water and Sanitation Formulation and Action Planning Facility (WASPOLA)

$10 million, 2008-2014

WASPOLA works with national, provincial and local governments to improve and promote policies that result in poor Indonesians gaining adequate water and sanitation services. WASPOLA is managed by the World Bank and run by the Indonesian Government through an inter-agency working group. Australia has been a long-term contributor.

Related documents*
Name of document Year published Type
Memorandum of Understanding regarding management Arrangements for the Indonesian Water and Sanitation Policy and Action Planning Facility Trust Fund (WASPOLA Facility) 2010 Memorandum of understanding
Water and Sanitation Policy Facility Program Design Document 2008 Design
Independent Evaluation of Australian Aid to Water Supply and Sanitation Service Delivery in East Timor and Indonesia 2009 Evaluation report
Third Water and Sanitation for Low Income Communities Project and the Water Supply and Sanitation Policy Formulation and Action Planning Facility – Independent Review 2013 Review
Third Water and Sanitation for Low Income Communities Project and the Water Supply and Sanitation Policy Formulation and Action Planning Facility – Independent Review: Management Response 2013 Management response
Related links

Water and Sanitation for Low Income Communities Project (PAMSIMAS)

$104 million, 2008-2018

The Water and Sanitation for Low Income Communities Project (PAMSIMAS) is the Indonesian Government’s national program to deliver water, sanitation and improved hygiene to rural and peri-urban areas. PAMSIMAS works with communities to plan, finance, manage and maintain their own water supply and sanitation systems and improve hygiene behaviours. PAMSIMAS is delivered through the Indonesian Ministry of Public Works and is co-financed by Australia and the World Bank.

Related documents*
Name of document Year published Type
Design Summary and Implementation Document – Water and Sanitation Initiative – Indonesia 2009 Design
PAMSIMAS Anti-Corruption Action Plan 2012 Plan
Third Water Supply and Sanitation for Low income Communities Project Mid-Term Review Aid Memoir 2010 Review
Third Water and Sanitation for Low Income Communities Project and the Water Supply and Sanitation Policy Formulation And Action Planning Facility – Independent Review 2013 Review
Third Water and Sanitation for Low Income Communities Project and the Water Supply and Sanitation Policy Formulation and Action Planning Facility – Independent Review: Management Response 2013 Management response
Related links

Provincial Road Improvement and Maintenance (PRIM)

$12 million, 2014-2015

The Provincial Road Improvements and Maintenance (PRIM) program is a pilot designed to help provincial governments improve the management and maintenance of their road networks. It also seeks to stimulate increased provincial government financing for road maintenance and facilitate public scrutiny of road maintenance services.

Related documents*
Name of document Year published Type
PRIM program design document 2014 Design

Multilateral Development Bank Infrastructure Assistance Program (MDB-IAP) including the Infrastructure Support (INIS) Trust Fund and the Sustainable Infrastructure Assistance Program (SIAP)

$40 million, 2013-2017

The Multilateral Development Bank Infrastructure Assistance Program works with the World Bank and the Asian Development Bank. The program supports a range of activities including project preparation support and implementation, feasibility studies, engineering designs and environmental impact assessments. The program is also supporting the development of a Public Private Partnerships Centre in the Indonesian Ministry of Finance.

Rural development assistance in Indonesia

Overview

Over the last decade, Indonesia has experienced impressive economic growth but this has not generated enough jobs to allow the poor to move into more stable, formal employment. As nearly two thirds of Indonesia’s poor live in rural areas and depend on agriculture for their livelihoods, development in this sector remains critical to reducing poverty, particularly in Eastern Indonesia. Many factors contribute to low incomes for farmers, including poor cultivation techniques, lack of quality inputs (such as seeds and fertilisers), long supply chains and a lack of access to investment funds. The Australian and Indonesian Governments share a goal of increasing growth rural Indonesians’ incomes, including in Eastern Indonesia.

Related initiatives

Australia Indonesia Partnership for Rural Economic Development program (AIP-Rural)

$112 million, 2011-2018

AIP-Rural is working to increase inclusive economic growth in five provinces in Eastern Indonesia by influencing how agricultural markets work for the poor. The program will help to reduce the number of Indonesians living in poverty, address constraints to rural income growth and improve food security and agricultural productivity. AIP-Rural is facilitating private sector-led investment in better agricultural practices, while also supporting the Australian Government’s aid for trade and women’s economic empowerment priorities. The program aims to increase the incomes of one million rural farmers by 30 per cent by 2022.

Related documents*
Name of document Year published Type
Promoting Rural Incomes through Strengthening Markets in Agriculture (PRISMA) Summary Design 2013 Design document
Tertiary Irrigation Technical Assistance (TIRTA) Design 2014 Design document
Related links

Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector

$60 million, 2013-2024

The Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector aims to enhance and strengthen long-term economic relations between Indonesia and Australia. It is focused on developing economic opportunities along the cattle and beef sector supply chain in order to support Indonesia’s food security and to promote closer ties in the beef and cattle sector between both countries. Membership of the Partnership comprises senior government officials and industry representatives from Indonesia and Australia. The Partnership provides advice and recommendations on areas of priority development in the sector. Initial projects supported include the Northern Territory Cattlemen’s Association Pastoral Industry Student Program and a Skills Development Program for future leaders in the production sector.

Related documents*
Name of document Year published Type
Indonesia-Australia Partnership on Food Security – Communique 2014 Communique

Social development assistance in Indonesia

Overview

Australia’s Poverty Reduction Support Facility works with the Indonesian Government to improve the efficiency and effectiveness of a social protection system worth more than $5 billion per year. Social protection programs protect the poorest from shocks and help poor children go to school and families to access health services. Our support to the Indonesian Government’s National Program for Community Empowerment develops local economies by improving the effectiveness of Indonesia’s own $1.7 billion annual investment in 73,000 villages. And through the Empowering Indonesian Women for Poverty Reduction (MAMPU) program, Australian support promotes women’s leadership and increases the capacity of women to participate in the economy.

Related initiatives

Poverty Reduction and Social Protection Support

Up to $162 million, 2010-2015

In partnership with the World Bank, Australia is helping the Government of Indonesia make informed, evidence-based policy and program decisions to improve the efficiency and effectiveness of Indonesia’s social protection programs. These include rice subsidies, health insurance, financial aid for poor students and cash transfers to poor households. In 2013 they reached 86 million vulnerable Indonesians. Australian support has helped to design a compensation package that allowed Indonesia to reform its fuel subsidies and will expand the number of poor students receiving assistance from 8.7 to 11.1 million from 2015.

Related documents*
Name of document Year published Type
Multi Donor Trust Fund Proposal Partnership for Knowledge-based Poverty Reduction 2010 Proposal
Poverty Reduction Support Facility Design Document 2010 Design
Poverty Reduction Support Facility – Gender Strategy and Action Plan – Version 2 2012 Plan
Poverty Reduction Support Facility – Inception Report September 2011 2011 Report
Partnership for Knowledge-based Poverty Reduction: Expansion and Extension Proposal 2013 Proposal
Poverty Reduction Support Facility – Operations Manual 2011 Manual
Report: Targeting poor and vulnerable households in Indonesia 2012 Report
Independent Progress Review Report of Partnership for Knowledge-based Poverty Reduction (PKPR) 2012 Progress review
Management response to the Independent Progress Review Report of the Partnership for Knowledge-based Poverty Reduction (PKPR) 2013 Management response
Independent Progress Review of the Poverty Reduction Support Facility 2013 Progress review
Management Response: Independent Progress Review of the Poverty Reduction Support Facility 2013 Management response
Related links

National Program for Community Empowerment

$314 million, 2009-2018

Australia provides assistance to Indonesia’s National Program for Community Empowerment (PNPM), one of the most successful community-driven development projects in the world. PNPM has been shown to develop local economies through investment in small-scale infrastructure, such as roads, bridges and irrigation systems. It has generated jobs and provided loans to female small traders and home-based businesses. In communities supported by PNPM, poor households have a greater likelihood of exiting poverty. Australian support has helped to ensure the effectiveness of PNPM as it scaled up to achieve national coverage, improving the quality of village-built infrastructure and expanding the program’s impacts on health and education.

Related documents*
Name of document Year published Type
Proposed AusAID Strategy for Support to Indonesia’s National Program for Community Empowerment (PNPM) 2010 Strategy
Proposal for Scale-up and Extension: National Program for Community Empowerment 2013 Strategy
Indonesia’s National Program for Community Empowerment – brochure 2010 Brochure
Related links

Empowering Indonesian Women for Poverty Reduction

$60 million, 2012-2016

The Empowering Indonesian Women for Poverty Reduction (MAMPU) program aims to improve the lives of poor women through increasing women’s access to jobs and removing workplace discrimination; improving women’s access to government social protection programs; and improving conditions for women’s overseas labour migration. It is also working to strengthen women’s leadership for better maternal and reproductive health and to reduce violence against women.

The program works with gender-interested organisations to analyse constraints, pilot solutions, and form coalitions with the government, parliament, media, and the private sector to advocate for positive change and increase women’s voices in decision making.

Related documents*
Name of document Year published Type
Empowering Indonesian Women for Poverty Reduction Program Design Document 2012 Design
Gender, Poverty, and Well-Being in Indonesia: MAMPU Background Assessment 2012 Research
Strengthening Women’s Access to Employment in North Sumatra and East Java 2012 Research
MAMPU Implementation Strategy 2013 Strategy
MAMPU Monitoring and Evaluation Plan 2013 Strategy
Stocktake on Parliamentary Strengthening Programs in Indonesia 2013 Research
MAMPU Working with Parliamentarians: Design Framework 2013 Strategy
MAMPU Working with Parliamentarians: Situational Analysis 2013 Research
MAMPU Working with Parliamentarians: Implementation Strategy 2014 Work plan
MAMPU 12 Month Workplan 2014 Work plan
​​

Last reviewed: 16 December, 2014