Project and Technical Assistance Proposals 2006 - 2009
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PROJECT AND TECHNICAL ASSISTANCE PROPOSALS 2006 - 2009 Volume II Technical Assistance Proposals Ministry of National Development Planning/ Nationall Development Planning Agency FOREWORD In order to achieve the effectiveness and efficiency of the utilization of external loans and grants (PHLN), Indonesian Government has issued Government Regulation (PP) No.2/2006 on Procedure for the Provision of External Loans and Grants and the Forwarding of External Loans and Grants (to Local Government and State Owned Enterprise). To implement the regulation, several ministry decrees have been issued such as Decree of the State Ministry of National Development Planning/Bappenas No. 5/2006 on Procedure for Planning and Submitting Proposals and Assessing Projects that are Funded By External Loans and Grants. The issuance of the new regulations is one of the efforts to achieve the targets of government debt to GDP ratio of the National Medium-Term Development Plan (RPJMN 2004-2009). It is stated in RPJMN that government debt to GDP ratio is targeted to decrease from 53.9 % in 2004 to 31.8% in 2009. The external financial sources are still needed to accelerate our development efforts, however its risks, especially loan, should be managed properly. Therefore, the government has determined to improve external loan and grant management. We have been starting some improvement of external loan and grant management through (a) formulation of the borrowing strategy, (b) improvement of preparation process of PHLN projects and (c) improvement of monitoring of the PHLN project implementation. The Borrowing Strategy identifies external loans and grants needs during the RPJMN period and indicates the sector priorities that will be financed by PHLN. The borrowing strategy is a guidance on utilizing the PHLN. Under this strategy, the government will be able to manage the amount of the PHLN, and also to provide the direction of PHLN in line with our development priorities and policies. The improvement of PHLN project preparation process is done through the preparation of the List of Project Proposals funded by External Loans and Grants for Medium-Term (DRPHLN-JM) or Blue Book 2006-2009 consisting project proposals, which are suitable and feasible to be financed by PHLN for medium-term. Subsequently the project proposals those already have financing resource and fulfilled several conditions of the readiness criteria will be put in the List of Project Priority funded by External Loans and Grants (DRPHLN) or the Green Book, which will be published annually. It is expected that the improvement of preparation process will increase the quality of various PHLN project proposal (quality at entry) and consequently project performance as well The publication of the Blue Book 2006-2009 is only the first step of the improvement process of PHLN project proposals as stated above. The project proposals in the Blue Book are the result of strict and selective assessment of project proposed by related ministries/agencies, local governments, and BUMNs (State-Owned Enterprises) in total value of USD 40.8 billion. The large amount of project proposals shows the needs to - i - accelerate development activities in various sectors. However, in line with RPJMN 2004- 2009 to gradually decrease the government debt stock and to reduce the dependency on foreign sources of development financing, we have to limit the new external loan application. Based on the priority of development in RPJMN 2004-2009, the project proposals have been evaluated by Bappenas and relevant ministries/agencies. As the results, the project proposals in DRPHLN-JM (Blue Book) 2006-2009 reach the amount of 13.19 billion consisting of the 194 PA activities in the amount of USD 11.48 billion, and 228 TA activities in the amount of USD 1.71 billion. In addition, to accelerate the local government development activities, 14 projects proposed by the local government in the amount USD 134 million, has been approved in the form of on-lending mechanism. Similarly, to increase the public service by BUMN, 13 projects worth of USD 1.73 billion, comprising electricity, transportation and health facilities have also been approved. Overall the project proposals included in the Blue-Book 2006-2009 consist of project proposals in the Blue Book 2004 and 2005, which have not obtained foreign financing but still considered as priority, and also various proposals of the new projects. Therefore, with the publishing of this Blue Book, the previous Blue Book editions shall not be valid anymore. We do have a great expectation that the project proposals in this Blue-Book when implemented properly, will be beneficial for the progress of the nation. H. Paskah Suzetta - ii - LIST OF TECHNICAL ASSISTANCE Indonesian Maritime Safety and Security Agency 1. The Project on Indonesian Maritime Security Coordination Body Structural Enhancement ...............................................................................................................3 National Coordinating Board for Disaster Management 2. Study on Natural Disaster Management in Indonesia .................................................7 Investment Coordinating Board 3. Investment Promotion Policy Advisor ......................................................................13 State Audit Board 4. Strengthening The State Audit Agency Capability in Audit of Central Bank ...........17 5. Strengthening Accountability for an Audit of Disaster Related-Aid Project.............18 6. Strengthening the State Audit Agency Institutional Capacity ...................................20 National Agency of Drug and Food Control 7. Developing IT Based System of Risk Analysis for Food Standardization................25 8. Improvement of Pharmaceutical Management..........................................................27 Assessement and Aplication of Technology Agency 9. Capacity Building of Biopesticide Production ..........................................................31 National Land Agency 10. Institutional Partnership for Strengthening Land Administration (IPSLA)...............35 11. Cooperation and Lesson Learned in Land Consolidation..........................................37 12. Land Inventarization and Agrarian Reform Project ..................................................39 13. Land Rights Protection and Recovery in Post Conflict and Social Unrest Area .......41 Bank Indonesia 14. Capacity Building for Enhancing the Economic Indicators ......................................45 15. Capacity Building for Enhancing the Role of Central Bank......................................50 - iii - List of Technical Assistance Ministry of Home Affairs 16. Decentralized Governance of Natural Resource Management..................................55 17. Integrated Regional Development Planning For Remote Island in Indonesia...........58 18. Capacity Development for Regional Development and Community Empowerment in North Eastern Indonesia................................................................60 19. Regional Development and Strengthening Decentralization.....................................63 Ministry of Energy and Mineral Resources 20. Electricity Power and Energy Policy Project.............................................................67 21. Development of Coal Energy in Indonesia................................................................69 22. Geothermal Energy Development in Indonesia.........................................................71 23. Supporting for Mineral Resources Development ......................................................73 Ministry of Law and Human Rights 24. Industrial Property Right Administration ..................................................................77 25. Border Control Project with Biometrics....................................................................79 Ministry of Culture and Tourism 26. Project for Tourism Product Development................................................................83 Ministry of Forestry 27. Study for Developing Aforestation/Reforestation CDM (AR-CDM) Project Design Document......................................................................................................89 28. Development of Sustainable Forest Management .....................................................91 29. Utilizing Information Technology in Forestry ..........................................................94 30. Human Resources Development on Forestry Sector .................................................96 31. Development and Enhancement of Forestry Products...............................................98 Ministry of Marine Affairs and Fisheries 32. Fisheries Enrichment in Developing Capture Fisheries Resources .........................103 33. Development of Concept and Strategy of Indonesian Marine Cadaster for Ocean Governance..............................................................................................................105 34. Monitoring of Antibiotic Residue in Fishery Product .............................................107 35. Revitalization of Traditional Brackish-Water Ponds through Reorientation towards Organic Shrimp Farming ...........................................................................109 36. Management and Conservation of Coastal Fisheries Resources .............................111 - iv - List of Technical Assistance 37. The Strengthening Capacity Building of Fish Quarantine in Indonesia ..................112 38. Assistance for SMEs in Fish and Shrimp Industry..................................................114