Sustainable Higher Education Research Alliances (SHERA) Program Performance Report Quarter 2 FY 2019 (January – March 2019)

Cooperative Agreement No: AID-497-A-16-00004

Prepared for:

Jalu Cahyanto, AOR Education Office, USAID/Indonesia

Prepared by:

Institute of International Education (IIE) April 30, 2019

Table of Contents

List of Acronyms and Abbreviations ...... 1 Executive Summary ...... 3 I. SHERA University Partnerships/Centers for Collaborative Research ...... 4 1.1 CCR Overview of Results ...... 4 1.2 CCR Direct Mentoring and Other Support ...... 4 1.3 CCR Monitoring ...... 5 1.4 SHERA Strategy Meeting ...... 6 1.5 CCR Activities – Key Highlights during the Reporting Period ...... 8 a. CCR-ARI ...... 8 b. SMART CITY ...... 8 c. CDSR ...... 9 d. NCSTT ...... 9 e. ANBIOCORE ...... 9 II. Other Program Activities that Contributed to SHERA’s Achievements ...... 10 2.1 Stakeholder Engagement ...... 10 a. USAID/Indonesia ...... 10 b. Private Sector ...... 11 c. Partnership Outreach ...... 11 III. Operations ...... 12 3.1 IIEF – Exchange Visitor Consultant ...... 12 3.2 Value-added Tax ...... 12 IV. Challenges ...... 12 4.1 Journey to Self-reliance ...... 13 4.2 IPB Management and U.S. Affiliates ...... 13 4.3 Incremental Increase in Funds ...... 14 4.4 CCR’s Operational and Program Capacity ...... 14 V. Activities Anticipated for Next Quarter (April – June 2019) ...... 16 5.1 Management Information System ...... 16 5.2 CCR Monitoring ...... 16 5.3 CCR Direct Mentoring ...... 16 5.4 Stakeholder Engagement ...... 16 5.5 USAID Sustainability Review ...... 17 5.6 IIE Home Office Travel to Indonesia ...... 17 5.7 Talk Show on Transportation Technology Day ...... 17

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List of Acronyms and Abbreviations ANBIOCORE Animal Biotechnology and Coral Reef Fisheries AMCHAM American Chamber of Commerce AOR Agreement Officer Representative BADORA Badan dan Orang Asing/ Foreign Corporate and Individual Tax Service Office CCR Center for Collaborative Research CCR ARI CCR for Acute Respiratory Infections CDCS Country Development Cooperating Strategy CDSR Center for the Development of a Sustainable Region DGT Directorate General of Taxation DO Development Objective DRM Domestic Resource Mobilization F&G Finance and Grants G&C Grants and Contracts GDA Global Development Alliance GOI Government of Indonesia HEI Higher Education Institution IIE Institute of International Education IIEF Indonesian International Education Foundation IPB Institut Pertanian Bogor/Bogor Agricultural University IP Implementation Plan IR Intermediate Result IRB Internal Review Board ITB Institut Teknologi Bandung/Bandung Institute of Technology ITS Institut Teknologi Surabaya/Surabaya Institute of Technology J2SR Journey to Self-Reliance JICA Japan International Cooperation Agency KEMRISTEKDIKTI Ministry of Technology, Research, and Higher Education KPI Key Performance Indicator LFR Limited Financial Review MESP Monitoring, Evaluation, and Support Program MOU Memorandum of Understanding MIS Management Information System MEL Monitoring, Evaluation, and Learning MOOC Massive Open Online Course MSU Mississippi State University NCSTT National Center for Sustainable Transportation Technology PAR Payment Advance Request PFI PT Proven Force Indonesia PI Principle Investigator PIC Person in Charge PIRS Performance Indicators Review Sheets PSE Private Sector Engagement PPP Public-Private Partnerships R&D Research & Development RBM Results-based Management RSUD Rumah Sakit Umum Daerah SHERA Sustainable Higher Education Research Alliances SMART CITY Scientific Modeling, Application, Research, and Training for City-centered Innovation and Technology SSU Savannah State University ST&I Science, Technology & Innovation TOC Theory of Change TOD Transit-oriented Development

UBB Universitas Bangka Belitung/University of Bangka Belitung UF University of Florida UGM Universitas Gadjah Mada/Gadjah Mada University UI Universitas Indonesia/University of Indonesia UIUC University of Illinois, Urbana-Champaign UMGo Universitas Muhammadiyah Gorontalo/Muhammadiyah University of Gorontalo UNAIR Universitas Airlangga/Airlangga University UNDANA Universitas Nusa Cendana/University of Nusa Cendana UNDIP Universitas Diponegoro/Diponegoro University UNG Universitas Negeri Gorontalo/National University of Gorontalo UNIBRAW Universitas Brawijaya/University of Brawijaya UNIPA Universitas Papua/University of Papua UNLAM Universitas Lambung Mangkurat/University of Lambung Mangkurat UNPAD Universitas Padjadjaran/Padjadjaran University UNPATTI Universitas Pattimura/University of Pattimura UNRAM Universitas Mataram/University of Mataram URI University of Rhode Island UNDP United Nations Development Programme UNS Universitas Sebelas Maret/Sebelas Maret University UNSRI Universitas Sriwijaya/Sriwijaya University UNSYIAH Universitas Syiah Kuala/ Syiah Kuala University UNUD Universitas Udayana/Udayana University UP Universitas Pertamina/Pertamina University UTS Universitas Teknologi Sumbawa/Sumbawa Technology University USAID United States Agency for International Development USG United States Government UTP Universiti Teknologi Petronas/Petronas Technology University VAT Value Added Tax

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Executive Summary

From January 1 – March 31, 2019, the Institute of International Education (IIE) completed activities and milestones necessary to implement the Sustainable Higher Education Research Alliances (SHERA) program (Cooperative Agreement AID-497-A-16-00004). SHERA aims to foster linkages between Indonesian higher education institutions (HEI) and U.S-based universities, and across diverse Indonesian universities to enhance the research capacity of Indonesian HEIs in science, technology, and innovation (ST&I), improve the enabling environment for quality research, and promote access to research and professional development opportunities for women. By establishing Centers for Collaborative Research (CCR) within top Indonesian universities, SHERA, in collaboration with the Indonesian Ministry of Research, Technology, and Higher Education (Kemristekdikti), bring together Indonesian and U.S. scholars to conduct world-class research within priority research areas.

SHERA had a number of achievements this quarter, including: • 35 international journal articles and 28 international proceedings published, totaling 59% of the program’s total target for the fiscal year. • 48 presentations at international conferences by SHERA scholars (28 men and 20 women). • 12 Indonesian scholars visited U.S. universities and 18 U.S. scholars visited Indonesian universities for program activities. • 106 Indonesian scholars (35 males and 71 females) received ongoing mentoring from U.S. university partners, 89% above the target for this fiscal year. • An increase in the number of U.S. partner HEIs from 8 into 10, with the addition of Temple University and Alabama A&M University (AAMU). Meanwhile, the number of partner Indonesian HEIs also increased from 25 in last quarter into 45 with the addition of Universitas Madura, and 19 Universitas PGRI.

During the reporting period, IIE held a strategy meeting for key stakeholders, which focused on USAID’s new strategic plan, called Journey to Self-Reliance (J2SR), as well as USAID’s FY19 roadmap for Indonesia under its new strategic direction. Important aspects of this meeting included identifying a CCR-wide management plan and goal-setting for private-sector engagement (PSE) and sustainability beyond the life of the program. In addition, the SHERA team invited the Government of Indonesia (GOI) to learn about SHERA’s public-private partnership (PPP) strategy and provide input.

IIE made significant progress in its PPP work by implementing its strategy. The SHERA team commenced a mapping exercise for CCRs, in which SHERA’s expert consultant met with several of them individually to learn about their current, anticipated and desired partnerships with the public and private sector. The SHERA team also held initial meetings with the American Chamber of Commerce (AMCHAM). In addition, to further address CCR sustainability, network, and achieve the program’s PPP objectives, SHERA’s Program Director lead partnership engagement activities with various U.S. universities while in the U.S. in mid-February.

Other highlights from the quarter included working with IIE’s implementing partner for SHERA, the Indonesian International Education Foundation (IIEF), to hire a consultant to support the increased number of Indonesian scholars who will visit the U.S. in the upcoming quarters for professional development, research, and training.

Lastly, during monitoring activities with several affiliate HEIs, the SHERA team documented a number of notable achievements that had not yet been previously acknowledged. For example, the SHERA team worked with Universitas Brawijaya (UNIBRAW) in East Java who, through support from SHERA and their Dean, improved their laboratory and procured needed research materials. At the end of the program, the laboratory and the research materials will be commercialized by charging external users to access the facilities. Universitas Syiah Kuala (UNSYIAH) in Aceh is also moving forward with research outputs, preparing to submit a patent for its research on cattle reproduction.

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I. SHERA University Partnerships/Centers for Collaborative Research

1.1 CCR Overview of Results In this reporting period, there were 63 articles published, consisting of 35 journal articles and 28 proceeding articles. The total peer-reviewed scientific publications resulting from U.S. government (USG) support was 44 publications, since three proceeding articles is equal to one journal article. Of those articles published by CCRs during this fiscal year, 52 of them (83%) are indexed Scopus articles.

The majority of the publications were produced by the Center for the Development of a Sustainable Region (CDSR), SHERA’s CCR focused on the environment, energy, and maritime sciences led by Universitas Gadjah Mada (UGM), and Scientific Modeling, Application, Research, and Training for City- centered Innovation and Technology (SMART CITY), SHERA’s CCR focused on urban planning and development led by Universitas Indonesia (UI). In addition, the National Center for Sustainable Transportation Technology (NCSTT), SHERA’s CCR focused on innovative technologies led by Institut Teknologi Bandung (ITB), achieved four citations from its publications and CDSR’s research initiative was applied by the United Nations Development Programme (UNDP) in four provinces (Gorontalo, NTB, NTT, and West Kalimantan) in 2019 (see details in Section 1.5.c.). During this quarter, 48 scholars participated at international conferences. Of those, 42% were female scholars. During this reporting period, 199 scholars participated in collaborative research, 12 of which were U.S. scholars from University of Colorado, Boulder (UCB) who participated in U.S. scholar exchange with CDSR. There were 106 Indonesian scholars who received ongoing mentoring from U.S. university partners. The majority of the mentoring was carried out in-person, with the exception of the Center for Collaborative Research on Acute Respiratory Infections (CCR ARI), SHERA’s CCR focused on public health and infectious disease led by Universitas Padjadjaran (UNPAD), in which eight Indonesian scholars participated virtually. There are nine capacity building activities carried out by CCRs in total, with 382 Indonesian scholars and 18 U.S. scholars participating in the events.

There was a total of seven institutions that improved their research management and policies, and administration and management system during the reporting period, which included ITB, UNPAD, UI as CCR leads and Universitas Sriwijaya (UNSRI), Universitas Udayana (UNUD), UNPAD and Universitas Diponegoro (UNDIP) as SMART CITY affiliate institutions. In total, 95 knowledge products have been created by the CCRs, which are available in various forms, including research reports, booklets, and YouTube videos.

Indonesian HEI participation in SHERA increased to 45 institutions during this quarter. Animal Biotechnology and Coral Reef Fisheries (ANBIOCORE), SHERA’s CCR focused on food security and self-sufficiency led by Pertanian Bogor (IPB), added Universitas Madura as a new local affiliate, and new five artificial insemination centers. In addition, 19 Indonesian academic institutions engaged in SMART CITY joint research projects, and 12 hospitals in five provinces engaged with CCR ARI as partners in joint research projects. The number of participating U.S. HEIs increased from eight to 10 this quarter, with the addition of Temple University to NCSTT and AAMU to SMART CITY.

1.2 CCR Direct Mentoring and Other Support

On January 16, the SHERA team conducted a series of virtual mentoring sessions to CCR leads. Topics included:

• CCRs’ research clusters to ensure accurate information is stored in their database, based on shared updates of CCRs’ research clusters and topics. A cluster can consist of several different topics, and they should be in line with the last annual report with regards to finalized and reported research achievements. • CCR-SHERA shared Google calendar to improve the accuracy of program implementation. The SHERA team expects that each CCR will update its calendar regularly.

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• Performance Indicator Review Sheets (PIRS) to reflect collaborative research – The SHERA team provided updates to the definitions of indicator outcome 1.2, scholars participated in collaborative research, and output 3.1.1, selected affiliates institutions included in research consortium. The indicators now emphasize the essential collaborative research efforts consisting of multiple institutions within CCRs and how data is recorded with specific disaggregation. • Bibliography of International Publication Article - Due to the CCRs’ uniqueness in multiple fields and sectors, and to ensure an aligned technique for all CCRs in updating databases on journal references, the SHERA team shared its decision to use the Oxford British standard bibliography. • Quarterly report evaluation to provide feedback on reports.

In addition, the SHERA team led a workshop in February for all CCR leads which focused on: • Reviewing financial report back-up requirements • Training on QuickBooks • Training on asset management

1.3 CCR Monitoring In this reporting period, IIE conducted in depth monitoring to one lead CCR, CDSR - UGM, to validate their achievements under intermediate result 3, academic research initiatives whose findings have been replicated, applied or taken to the market; and three affiliate CCRs, UNSYIAH, as an ANBIOCORE affiliate, and UNPATTI as CCR ARI affiliate, to validate their research works, partnership, and learning, as well as achievements under intermediate result 3, based on the previous CCR quarterly reports.

CDSR – Universitas Gajah Mada IIE’s monitoring of CSDR - UGM took place through focus group discussions held in Yogyakarta on February 13-15. During this time, the SHERA team confirmed that the UNDP has replicated one of CDSR’s academic research initiatives (see details in Section 1.5c).

CDSR has not created a strategy for bringing research products to market. Instead, the current practice of cooperation with either public or private partnership is mostly based on their existing network and/or experience with past grants/research. Based on this finding, the SHERA team plans to provide targeted support CDSR to develop a clear strategy and approach on how to market their research findings and CDSR's works, especially as the local academic institutions act as the first contact for external parties interested in conducting research and community development programs in renewable and sustainable energy. SHERA’s support will include providing guidance on approaching and engaging external stakeholders based on lessons learned from other CCRs.

CCR ARI – Universitas Syiah Kuala The SHERA team conducted a series of visits to UNSYIAH between February 25 - March 1. The team observed CCR ARI’s training in Epidemiology Research Methods and discussed the current practice of CCR ARI's research works, management research, and local partnerships. Training participants included scholars from UNSYIAH and CCR ARI partner HEIs in Aceh, plus five participants from other affiliate institutions - UNPATTI (2 persons), Universitas Lambung Mangkurat (UNLAM, 2 persons), and Universitas Mataram (UNRAM, 1 person). As per design, CCR ARI developed the education team to organize and manage the activity in the SHERA’s first outcome as capacity building. The training inspired participants in designing their research plan, unfortunately only several of them were related with the CCR ARI research topics.

During the training, it appeared that different scholars took turns to participate in the sessions, possibly due to scheduling conflicts. It is not clear how they are going to transfer the knowledge acquired from

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the training to other colleagues who did not attend. Unfortunately, the training program is not a cohort system that guides participating scholars in further involvements in the CCR.

CCR ARI – Universitas Pattimura On March 11-13, IIE observed two hospitals in Ambon – RS Haulessy and RS Sumber Hidup – and conducted in-depth interviews with field doctors to gather lessons learned on CCR ARI's research process. IIE followed up with an in-depth interview with one member of the ethics committee, Ibu Yuniasih Taihuttu, S.Si, M.Sc., and another with CCR ARI's management personnel, Dr. Christy and Dr. Ony. A final focus group discussion was held with five UNPATTI scholars.

Dr. Nur Atik, Associate Partnership Manager – CCR ARI (third from left) informs UNPATTI management on the need to conduct the agreed management and administration practice trained by CCR ARI. USAID SHERA AOR – Jalu Cahyanto (second from right), observes the meeting and gives hi advice on dealing with USAID program.

On the last day of the visit, IIE held a formal meeting with CCR ARI’s lead and affiliate management personnel so that CCR ARI could present their progress on research, management and administration, and policy development. At the end of the day, the team conducted direct mentoring to field doctors on completing the research log books.

IIE identified the following challenges, which need to be addressed to the Ministry of Health and Kemristekdikti: 1. The Ministry of Health is conducting national-level research on the same topic, methodologies for collecting samples, but with different approaches and focus sampling, which has led to some confusion in the field. 2. As no post-graduate study programs at either the Masters or PhD level is available at UNPATTI, the only individuals involved in journal writing are scholars. 3. There is no mentorship activity from the lead CCR in accelerating the KPI achievements on local research collaborations and related journal publications.

1.4 SHERA Strategy Meeting IIE determined the need to replace SHERA’s biannual planning meeting with a strategy meeting focused on USAID’s new strategic approach. This meeting took place in Jakarta on February 11-12. The two- day meeting was attended by USAID, consisting of Thomas Crehan, Director of Human and Capacity Partnership; Jalu Cahyanto, Agreement Officer Representative (AOR); and Ester Manurung, Alternate AOR; and by Kemristekdikti, Ir. Prakoso M.M., Secretary of Directorate General, Syarif, Head of Legal Division. and Hali Aprimadya, Head of International Collaboration. CCR Program Directors and Partnership Managers were also present.

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Tom Crehan – Director of Human and Capacity Partnership (third from left, below) with USAID SHERA AOR , Jalu Cahyanto (far left, below) attend and have dialog on USAID new direction.

The primary take-aways from USAID’s presentation on its strategic plan include: • Sustainability is now key and USAID must see that all CCRs will function independently at the end of the program. • By the end of the program, CCRs’ research results should have had an impact on policy, industry, and communities. • SHERA and CCRs will need to adjust their program implementation to meet USAID’s strategic shift. This will impact expected targets of outcomes and outputs. • CCRs, as the real implementors at the field level, can propose and submit ideas for altered programs not in line with the new USAID strategy.

CCRs’ responses included the following: • All CCRs are committed to becoming Centers of Excellence. • Research programs behave differently from traditional development programs, as they start slowly and become increasingly fast in the middle and towards the end of the program period. Therefore, CCR management should work with USAID on how to optimize their funding.

Main message from Kemristekdikti included: • Kemristekdikti works with the National Planning Agency in developing the road map and blue print for Indonesia’s overall research programs. They requested all CCRs to submit information on how SHERA supports their research. This information – covering research topics, themes, and partners – will be incorporated in Indonesia’s research blue print.

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Mr. Prakoso, Secretary to Directorate General of Research and Development, MoRTHE (top, left) gives a welcome speech, and requests all CCRs to to submit information on how SHERA supports their research.

1.5 CCR Activities – Key Highlights during the Reporting Period

a. CCR-ARI The SHERA program developed by CCR ARI stimulates and contributes to the hospital accreditation process assigned by Joint Commission International Accreditation. The contributing measurement indicators are the research activities and collaboration with other parties to increase their knowledge, skill, and quality services. Since CCR ARI conducted collaboratively research in Zainal Abidin Hospital, the patient's data in medical record is more detail than before, and it's influencing the better data management in the hospital.

Currently, the CCR ARI education team aims to develop a training center as a sustainability program to support ongoing capacity building for professional researchers. However, topics of trainings need to be made broader and not be so specific by focusing only on CCR ARI’s own research topics.

SHERA supports the Faculty of Medicine to increase their research activities and output:

• The medical faculty was established in 2008. As the youngest affiliate in eastern Indonesia, it shows a high level of commitment in increasing research infrastructure and capacity. Using the university’s own budget, they contributed a very cold temperature freezer (-80˚C) for the storage management of research samples. • The utilization of research findings in the hospital (RS Haulessy) is expected to be adopted or replicated by hospitals in the acute respiratory cases, • UNPATTI is increasingly interested in holding an international conference at the university to encourage global networking and local capacity building to encourage local scholars to write and publish more.

b. SMART CITY The CCR succeed in developing a collaboration with a third party by signing four MOUs with the Local Finance Agency of Depok Municipality in 1) developing the Smart Land Surveillance System Prototype, 2) Consultation services on Innovative Research, 3) Infrastructure Sector, and 4) Economic data analysis of Serang Municipality.

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c. CDSR CDSR could convince UNDP to replicate one of the CDSR academic research initiative. The UNDP was exposed with CDSR researches through several events where CDSR participated. Ibu Dintani, as one of CDSR’s researchers, her methodology has been tested through several researches, later CDSR and UNDP agreed to replicate it under Small Grant Program (SGP) that focuses on energy sustainability. Her methodology is used to analyze visibility of energy sustainability currently carried out in four of UNDP’s assisted provinces.

CDSR does not set up a fixed and specific design on how one or several research products will be adopted, replicated or taken to the market. Current practice of cooperation with either public or private partnership is mostly based on existing networking and/or experience of past grants/research. This is also the case with the adoption implemented by UNDP on SGP, in which based on the learning from previous researches conducted by Ibu Dintani.

SHERA needs to support the increasing capacity of CDSR's affiliates institutions in replicating and applying research by providing technical assistance for the Lead CCR to develop a clear strategy and approach on how to market the research findings and CDSR's works, especially for the respective local academic institutions, as the first contact in approaching the external's interest and needs in research program and community development program in energy renewable and its sustainability.

d. NCSTT NCSTT has enlarged their partnership to other private and public sector, national and international, to support their research works in developing the prototype of e-bus. As the Excellent Center for Science and Technology, KEMRISTEDIKTI and Ministry of Finance, through Indonesia Endowment Fund for Education (LPDP) invested IDR 3 Billion each year to support the development of NCSTT, including the support to conduct research on electric vehicle (e-trike) and e-bus.

On the private partnership, NCTT contributed the design of e-bus and e-trike, while PT Bakrie and Brothers by providing the production facility. Currently, they are planning to obtain the Japan International Corporation Agency (JICA) funds to enlarge the research and educational works, and it will be supported by the strong relationship with prominent higher education institutions in Japan (Tokyo Institute of Technology and University of Tokyo).

e. ANBIOCORE The team conducted monitoring of UNSYIAH on February 25 to March 1, 2019, by observing the laboratories supported by SHERA as well as CCR research works with their local partner, BPTU – Indra Puri in Aceh Besar, and by conducting focus group discussions with researchers and management personnel.

UNSYIAH’s Veterinary research program managed well, with a clear research plan and collaborative networking with BPTU Indra Puri. It is good to note that UNSYIAH has several plans in place to utilize research, namely to collaborate with Aceh Provincial government on genome research. Discussions have already taken place regarding the funds to be provided by the provincial government, especially following the end of SHERA.

There is a potential patent practice related to research conducted at UNSYIAH, where researchers have already created a data primer as a method for research analysis. It was also great to note that the institution has developed a plan to provide more opportunities for their scholars to apply for SHERA research grants to be implemented for their Year 3 programming, something that both lead partners and SHERA need to keep in mind as activities in the field emerge.

UNSYIAH has cooperation agreements and networks with higher education institutions in Australia and India and is currently discussing with the National University of Singapore for collaboration

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opportunities. These efforts can be further followed up to contribute to SHERA’s KPIs on research consortiums.

The cooperation between UNSYIAH and BPTU Indra Puri is well-established, and regular communications should exist between UNSYIAH and the BPTU high-level management to discuss progress. The Head of BPTU, Indra Puri, suggested that the team should involve the Research Development Unit of the District Husbandry Office to develop better planning for research utilization, which would ensure that research initiatives are accessible by targeted markets. This will be taken up by the UNSYIAH and BPTU teams.

II. Other Program Activities that Contributed to SHERA’s Achievements

2.1 Stakeholder Engagement

a. USAID/Indonesia The USAID Administrator launched J2SR in October 2018 to guide missions to develop and implement an assistance strategy based on capacity and commitment of host country government. J2SR requires USAID to reorient its programs to focus on systems and institutional strengthening that will enable institution partners to plan, finance and continue the programs when USAID ends its supports. In line with the new Agency policy in foreign assistance, the assessment is intended to be used as a discussion tool with GOI on the country’s roadmap to economic independence.

On March 14, USAID/Indonesia held a State-of-Mission COP Meeting with all implementing partners, in which it present Indonesia’s roadmap, discussed the latest advances in Domestic Resource Mobilization (DRM), and private sector engagement, and provide updates on the Mission’s Country Development Cooperation Strategy (CDCS) and J2SR. USAID’s current stage of its strategic plan includes working with technical ministries and sub-governments to share information on its new approach in order to start to explore new sources for PPP and discuss how to best measure PSE.

During this quarter, USAID/Indonesia conducted a limited financial review (LFR) of the locally incurred costs of SHERA to obtain an understanding of SHERA’s financial management systems and internal controls, limited assurance that the locally-incurred costs billed to USAID comply with USAID’s cost principles and the terms and conditions of the agreement, an understanding of SHERA’s sub-award management systems to ensure that USAID is billed appropriately. Transactions were sampled for the period from October – December 2018. USAID representatives spent two days conducting field work at the SHERA project office in February, followed-up by two-day meetings with UGM in Yogyakarta and IPB at Bogor in March.

The LFR team met with the SHERA team for a brief on the LFR on March 25 at the SHERA office at the conclusion of the field work to share preliminary observations. During this meeting, USAID provided the following input:

• IIE has fulfilled all necessary finance, grants and administration requirements, except for Travel Authorization Requests, in which budgets should be included moving forward. • For ANBIOCORE – IPB, USAID reviewed the following findings: 1) having blank checks with completed signatures is very risky, as anyone with access to the checks can access funds, and 2) most of transactions were paid using a personal account of the Project Manager Assistant, which is also very risky as it can lead to misconduct in money received in or transferred out. IIE will be working with IPB to address this in the upcoming quarter.

USAID recommended the following actions be taken: 1) stop any transactions through the Project Manager Assistant's personal bank account, and 2) follow clear and transparent procurements as outlined in their subaward with IIE. IIE has since shared the above recommendation with ANBIOCORE

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management during a meeting between USAID, SHERA and ANBIOCORE on March 29 at IPB (see details in Section 5.2). ANBIOCORE is in process of preparing the response to the meeting.

b. Private Sector As the university consortia move forward with their activities and research, the need for strong private and public sector partners has increased. While each CCR has successfully progressed in conducting outreach to and developing relationships with identified partners, IIE is utilizing the expertise of SHERA’s PPP expert consultant and leveraging its private sector network to further foster mutually beneficial relationships. IIE conducted activities both in Indonesia and the U.S. to advance this over the quarter.

In Indonesia the SHERA PPP consultant met AMCHAM officials on March 26 to share relevant information about the program and explore opportunities for collaboration between the CCRs and AMCHAM members in Indonesia. AMCHAM invited SHERA to meet the committee members during a meeting on April 9 and to a networking event on April 11. In addition, during this quarter, the consultant visited IPB, UNPAD and ITB’s CCR management to work together in mapping their past, current and potential public and private sector partners. The map will be used as the start of a blueprint in developing the PPP aiming and supporting the sustainability plan. UI and UGM will be visited on the next quarter.

In the U.S., IIE’s private sector engagement specialist developed a matrix of IIE’s private sector and foundation contacts who may have an interest in working with one or more of the CCRs. These details were shared with the CCRs for their input. From this, CCR will share details of how each entity could contribute to and benefit from their relationship with the CCR. This will be turned into an introductory letter that will be sent from IIE’s Head of Corporate and Foundation Programs to the private sector and foundation contacts. From there, the SHERA team and individual CCRs will spearhead the partnership building efforts.

c. Partnership Outreach SHERA’s Program Director (PD), Prima Setiawan, traveled to New York in February to conduct outreach and promote SHERA towards the CCRs increased sustainability. While there, he presented SHERA’s lesson learned in a panel discussion with Dr. Mangala Sharma, Program Director, Bilateral and Multilateral Cooperation, Office of International Science and Engineering / Office of the Director, National Science Foundation (NSF); Alison Corbett, Head of Education Programmes, British Council; and Dr. Katja Simons, Executive Director, German Alliance University.

SHERA’s PD connected with several key institutions that expressed interest in research collaboration with the CCRs, namely University of California, Davis, Colorado State University (CSU), University of Arizona, Kansas State University, and University of Kentucky. Knowing such high interest, and also From left to right: Mangala Sharma, PhD, Alison Corbett Ph.D, Dr. Katja Simons, and Prima UGM plan to visit its Setiawan. They shared the lesson learned from various partnership between university to affiliate UCB in April and university, public and private sector, in the “Research Partnerships as Drivers of Innovations” UNPAD plan to visit panel. University of Colorado, Denver on April, SHERA’s PD introduced the Program Director and Partnership Manager of UGM and UNPAD to the International Director of CSU the and Associate

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Provost of UC Davis. They agreed to meet and explore any possible collaboration when UGM and UNPAD visit them in April.

In New York, SHERA’s PD held a meeting with IIE’s VP of Business Development and SHERA’s U.S.- based Public-Private Specialist in designing the university partnerships with the public and with private sector in the U.S. and the U.S. industries having operational activities in Indonesia.

While visiting Washington D.C. for a strategic and operational meeting, SHERA’s PD met with IIE’s EVP in Business Development; Senior Vice President, Program Management, EVP Finance, and Director of USAID Program, and Grant and Finance team to report and evaluate SHERA performance. External meetings included visiting the Indonesian Embassy for a meeting with Dr. Popy Rufaidah, the new Education and Culture Attaché who recently replaced Prof. Ismunandar, as one of SHERA’s Advisory Board members. At the Embassy, Dr. Popy and her team welcomed the delegation, consisting of IIE’s USAID Program Director, David Simpson, SHERA’s PD, and SMART CITY Program Director and Partnership Manager. The delegation reported on SHERA’s achievement and its plan to increase its U.S. network by working with more U.S.-based HEIs and private sector entities. Dr. Popy committed to support SHERA, and informed IIE that she will visit UC Denver to witness the signing of new a MOU between UNPAD affiliates with UC Denver in April.

From left to right: Ahmad Gamal Ph.D, Prof. Heri Hermansyah, Prima Setiawan, David Simpson, Popy Rufaidah Ph.D the Indonesia’s Attaché of Education and Culture, Attaché of Social and Politics, Attaché of Defense, and Attaché of Economic Affairs III. Operations

3.1 IIEF – Exchange Visitor Consultant In response to the need for CCR support related to Indonesian scholars’ travel to the U.S. for research and partnership activities with their U.S. affiliates, IIEF’s scope has increased to include ensuring visa compliance with necessary U.S. government regulations on exchange visitor travel to the U.S., including hiring a specialist to support travel to the U.S. under J-1 visas, providing pre-departure and in-country support and monitoring and tracking exchange visitors while in the U.S. and upon return to Indonesia. In February, IIEF hired the specialist who will manage and implement this work.

3.2 Value-added Tax IIE submitted restitution of the SHERA project office’s value-added tax (VAT) charges on April – October 2018 rent, which included a recommendation letter from USAID, Kemristekdikti and the Central Planning Agency on early August – Mid September. SHERA continued the process and obtained tax restitution approval issued by the Director General of Taxation (DGT) in December 2018, stipulated in letter S-29826/WPJ.07/KP.07/2018 dated December 18, 2018. However, since the bank account details was not initially included, the DGT requested this information be submitted by January 2019. IIE responded to this request on February 19. Currently the process is pending and IIE awaits further information from DGT.

IV. Challenges

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4.1 Journey to Self-reliance In mid-2018, USAID informed all implementing partners of the coming shift in its strategic approach to development. IIE shared related information to all CCRs leads. As J2SR is in line with the expectation that CCRs should be sustained beyond the life of the program after SHERA ended, the perception and expectation need to be understood by all parties. IIE will have S a Sustainability Meeting on July to discuss the need for CCRs to potentially adjust their design to meet these changes, how their research can better impact communities, and budgetary needs to address these changes.

4.2 IPB Management and U.S. Affiliates As outlined in past performance reports, ANBIOCORE, the CCR lead by IPB, continues to face significant management challenges, which in turn impacts its burn rate, procurement process, ability to run activities per its approved workplan; strains its relationship with its affiliate partnership; and reduces its ability to achieve their target indicators. IIE has noted concern over these management challenges in emails, phone calls and letters. Unfortunately, despite IIE taking steps to assist IPB with addressing its challenges, IPB has failed to take any action that resulted from the previous communication. Since it continued to see no improvement, IIE issued a letter of poor performance in March, noting the following areas of concern:

• Submission of consistently late and incomplete financial reports; • Inability or lack of urgency in addressing questions and concerns raised by IPB’s U.S. second- tier recipients, University of Rhode Island (URI) and Mississippi State University (MSU); • High turn-over and/or inability to find adequate replacements for essential management positions within the CCR, including the Partnership Manager and Finance Manager, with an inadequate level of training and/or support provided to new staff, and lack of transparency in the responsibilities of and the decision-making process among the CCR’s management team; and • Lack of equal ownership and attention to the management of finances, operations, and program activities between the two faculties participating in the CCR, Veterinary Sciences and Fisheries and Marine Sciences.

In order to show progress in addressing IIE’s concerns, improve the CCR’s operations and management, increase the spending rate, and ensure IPB meets its year two workplan targets, IIE has identified several steps that IPB must take in order to continue receiving funding, which was outlined in the letter to IPB. The improvement plan is required to include:

• Submitting monthly financial reports and all required back-up documentation on time per conditions of their subaward; • Responding through a written memo to IIE’s questions regarding MSU, including the role of the PI as a consultant and the time period under which he acted in this capacity, and a justification to the reduction in funds allocated to MSU and how the funds will be absorbed by IPB per their work plan and approved activities; • Reimbursing URI for all costs incurred under their subaward and submitted through invoice to IPB; and • presenting a new management structure to IIE that equally balances representation of the two faculties – Veterinary Sciences and Fisheries and Marine Sciences – at the highest levels of the CCR and illustrates how this new structure will address the management concerns to- date including high turn-over rate and inadequate support and training to staff and lack of transparency in the responsibilities of and the decision-making process among the CCR’s management team.

IIE met with IPB leadership and ANBIOCORE management at the end of the March at IPB to further discuss the problematic elements of ANBIOCORE’s management and their approach to resolve the challenges. Participants included Jalu Cahyanto, USAID Manager, SHERA team members, and IPB Vice Rector, Prof. Dodik R. Nurrochmat, Dean of Post Graduate Studies, Prof. Anas M. Fauzi, Dean of

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Husbandry, Faculty Prof. Srihadi Agungpriyono, Director of International Collaboration, Prof. Iskandar Z. Siregar, and ANBIOCORE Program Director, Prof. Bambang Purwantara. Following the meeting, the SHERA team sent out an email to all parties reviewing those items agreed upon and discussed. Next steps included submitting all requested documentation and an updated management structure, to be sent in the upcoming quarter.

4.3 Incremental Increase in Funds As IIE cannot commit more funds to our subs than we have available, it has been a significant administrative burden in the past when receiving an obligation increase that provides funding to implement a portion SHERA’s annual workplan, and the CCR leads have expressed concern that the minimal amount of their current obligations could disrupt their research and have a negative impact on their subawards and activities led by their affiliates.

IIE is currently experiencing added strain, as it has reached it has advanced funds to its subrecipients up to their obligation, however we cannot provide them incremental increases because we have yet to receive our own from USAID. Seeing the upcoming need from our subrecipients for funds to cover their upcoming activities while also accounting for our current commitments and funds obligation remaining, IIE submitted a formal request for an incremental increase in February. At that time, USAID requested that we send a request when we reached 75% of our current obligation. This was submitted in mid-April, however IIE has yet to receive the needed funds from USAID. This has left IIE no choice, but to approve recent advance requests only up to the limit that subrecipients’ have funds available from their current obligation and, in turn, provide less funds that they require in order to implement approved and planned upcoming activities.

4.4 CCR’s Operational and Program Capacity All CCRs have reached the second year of program implementation. IIE has provided continuous training, followed-up by direct and virtual mentoring, including close monitoring to all CCRs. UI, ITB, and UGM have shown better performance, both on program achievements and program management. Meanwhile, UNPAD has learned a lot from previous slow disbursement and financial management and has shown improvement. However, CCR ARI has not shown any progress in research publications due to the very deep research developed by the Lead. The only Lead CCR which lacks both program and financial management implementation is IPB. The lack of capacity of IPB personnel in managing the operation, and the slow decision making at the management-level keeps IPB from meeting their targets and burning their funds.

Challenges unique to each CCR include the following:

CDSR CDSR reaches its phase to speed up the performance in fulfilling the target while enlarging the network. It requires good management control in mobilizing all teams in lead and affiliate institutions as well. While increasing the speed of the work and budget disbursement, the lead management team was demanded to keep discipline of control on budget and MEL aspects.

Enlarging and strengthening network comprising new institution partners from Indonesia, US and other countries play important role in sustainability design of the CDSR beyond the SHERA grant. This period was marked with intensive coordination not only with affiliates and UCB in preparing an exchange visit to US, but also to five potential new partners, i.e.: Colorado State University, University of Texas at Austin, Auburn University, California Polytechnic and as well as University of California at Davis will be visited and explored the possibility of research collaboration. CDSR has the capacity to manage and fulfilling all procedure in processing the US J-1 Visa for the visit.

Furthermore, the CDSR still faces challenge in developing ability to receive high citation rate to the produced papers. As the citation is significant sign in wide scale academic feedback and recognition,

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the CDSR force itself to find effective way to increase citation index of the produced papers. It should be managed carefully to always comply with ethical academic standard.

ANBIOCORE CCR ANBIOCORE faced some challenges in this period, such as unallowable of the invoice for research materials in Fisheries Research Cluster. CCR ANBIOCORE had negotiated with IIE for these issues and they already invoices to IIE. There were challenges in managerial practice and communication, and CCR ANBIOCORE received letter of low performance from IIE. Detail information is described in Section 5.2. SHERA invited CCR ANBIOCORE to inform the low of performance in program and operational management. ANBIOCORE team led by Prof. Bambang Purwantara.

At the end of the meeting, it was decided that ANBIOCORE should propose an improvement plan on program and operational management.

There is also lack of communication and coordination between lead and affiliates institutions in their collaborative research works in both clusters, thus some of research progress are uncommunicated in appropriate way, resulted the affiliates have difficulty in continuing the next step in research implementation.

Continuous training on financial and grant management also have been provided to the Finance Officer, and up to this report written her capacity only increase very slowly, and resulted IIE has to work harder in supporting the IPB Team in finalizing the financial process.

NCSTT NCSTT has successfully achieved the program indicator, and they are keeping up in full speed in fulfilling the target. With full speed, NCSTT needs the certainty of the Year 2 budget. They have already approached its first obligation limit, and need to make a new modification. On the other side, their targeted program impact will be produced and to be tested after July, and to be displayed at ICEVT on mid-November in Bali.

On data collection for Management Information System During this Q2 period, The Management Information System (MIS) is challenged to improve website function to support research incentive management. Incentive claim on research products for proceeding and paper have been accommodated, however patent and prototype has not been accommodated yet, and the worse is, some researchers did not submit their incentive form more than three days so the form is expired (patent procedure). Proposed Solution: CCR NCSTT will facilitate incentive claim for patent and prototype. The standard operating procedure for claiming has been created and soon to be followed up by MIS. Notification to researchers to fill their incentive form through mobile phone is considered to increase the awareness.

Slow Progress in MoU Reviewing Process with the private sector. In this quarter, NCSTT has prepared Memorandum of Understanding (MoU) drafts with several industries: PT. Bakrie and Brothers, PT.

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Transportasi Jakarta, PT. Isuzu Astra Motor, and PT. Laksana Karoseri as part of prototyping process. The review process took more time than everybody expected, as both parties have different target in the MOU. Proposed Solution: Both NCSTT and industries will negotiate on the unmatching perception and expectation.

CCR ARI In general, CCR ARI - UNPAD is still encountering challenges in management area, especially related to financial flow to affiliates and laboratory/ research materials procurement. This resulted several institutions should find any external prior funding alternative to maintain targeted performance, both for operation and research activities.

Research materials procurement have been an important issue since last year, but still didn’t find a mutually beneficial solution that could simplify the finance workflow and the laboratory team could perform their work properly. ARI Management will visit UCD on April, and discuss with the PI in streamlining the procurement process.

SMART CITY SMART CITY planned to conduct Exchange Visit (EV) during this period, due to the bureaucracy and time limitation SMARTCITY – UI have faced some challenges as below:

• Technical participant support such as collecting research proposal beforehand for match- making by the program assistance so the mentees can have substantially matching topics with the mentors. This challenge combined with difficulty in Data and Documents gathering to be prepared in accordance to SHERA’s requirement resulted from lack of coordination between SMART CITY’s team in UI and Indonesian university partners. Recommendation: Coordination of the Research Consortium should be directly between SMART CITY MEL Assistant and the researchers from partnering Indonesia University, this is due to reduce the long and overlapping process. • The Finance Manager will be having three months maternity leave from May – July, and a temporary replacement has been hired. He joined the Financial Management training in Bandung, and showed good progress.

V. Activities Anticipated for Next Quarter (April – June 2019)

5.1 Management Information System The SHERA team will finalize testing of its Management Information System (MIS) in the upcoming quarter. The team will also spend time training the CCRs on the system.

5.2 CCR Monitoring The SHERA team will conduct targeted monitoring to NCSTT and SMART CITY affiliates.

5.3 CCR Direct Mentoring The SHERA team will provide training to CCR leads in impact story creation. In addition, SHERA will conduct direct in-person and virtual mentoring to Indonesian affiliates, especially in HEIs located in CDCS target areas, including Aceh, West Java and West Papua.

5.4 Stakeholder Engagement IIE will continue to support private-public sector engagement to increase CCRs’ sustainability by conducting individual meetings and mapping exercises with UI and UGM. Along with exploring possible MOUs between CCRs and their partners, SHERA’s PPP consultant plans to have a follow-up meeting with AMCHAM’s members to introduce SHERA’s research activities and explore collaboration opportunities.

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5.5 USAID Sustainability Review USAID informed SHERA that in April and May, the Monitoring, Evaluation, and Support Program (MESP) will conduct a sustainability review of the institutional research partnership under the SHERA program to determine how the effort can be sustained beyond current USAID funding. The review will examine and discuss results and lessons learned to-date in terms of institutionalization of the program partnerships and identify the key factors that will be required to sustain the program. The purpose of the exercise is to inform USAID and the GOI of the sustainability of the institutional research partnership model under the SHERA program. The review will be based on a desk review of development sustainability literature, a review of program progress, and interviews with key informants.

5.6 IIE Home Office Travel to Indonesia In April, IIE’s Grants and Contract Director will travel to Indonesia to provide trainings to IIE’s USAID/Indonesia project teams and meet USAID/Indonesia representatives and SHERA’s CCRs. Later in the month, IIE’s USAID Programs Director, David Simpson, will travel to Indonesia to meet with internal and external stakeholders for all USAID/Indonesia projects. For SHERA, this will include internal meetings with the SHERA team, external meetings with USAID and CCR leads, and attendance at SHERA’s Talk Show on Transportation Technology on April 30.

5.7 Talk Show on Transportation Technology Day The SHERA team will host a panel discussion focused on transportation technology and the advancements in the sector led by two of SHERA’s researchers from NCSTT. NCSTT is developing new ways to engage women researchers, including a training program specifically for women engineers, which they will highlight during this event as one of the many manners in which SHERA is helping to advance opportunities for Indonesian women in academic research. The event will include a national- level speaker from PT Trans Jakarta. The talk show will be moderated by a manager at Go-Jek, an online transportation company.

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