November 20, 2007

ENDORSEMENT MEMORANDUM FOR: Henrietta H. Fore, Director of U.S. Foreign Assistance and USAID Administrator FROM: Ambassador Cameron R. Hume SUBJECT: Endorsement of FY 2008 Operational Plan/Indonesia Indonesia poses a crucial test for transformational diplomacy. Only a decade ago, Indonesia was an authoritarian, military dominated state. Today, the country is the only state in the region to earn Freedom House’s ‘free’ rating, and its economy is growing at more than six percent. USG diplomatic efforts, effective economic assistance, and strategic public diplomacy programs contributed to this fundamental transformation. Challenges remain, however, in supporting military reform; strengthening the police force; reducing corruption; making the economy more attractive for direct foreign investment; and improving public education and health systems. USG Achievements During 2007 Peace and Security: Increasingly, security assistance and military-military cooperation are paramount to USG security goals. Our engagement is needed to make up for the lost generation of contact with the Indonesian military during the 13 year embargo. USG staff is working with the Indonesian military to design a budget process that will make the entire military budget subject to approval by parliament, increasing transparency and accountability and enabling the military to divest itself of problematic money-making operations. In FY07 we accelerated the complicated, but critical process, of reestablishing a healthy military-military relationship, especially in priority areas of defense reform and restructuring. As the relationship improves, increased security assistance will ensure that the USG is able to support the GOI’s and Indonesian military’s efforts at long-term, substantive reform. Indonesia’s new civilian police are transforming from a force that protects the state into a force that protects the citizens. At Indonesia’s request, U.S. experts designed a full range of training programs for the new force, helped rewrite the criminal procedure code, and promoted reforms by working directly with the police. To consolidate the peace process between the Free Aceh Movement (GAM) and the GOI, the USG increased support to local institutions in order to mitigate violence and to advance prospects for long term peace. Incidents of conflict and criminality – especially involving former GAM combatants – remain an issue in Aceh. Governing Justly and Democratically: The Indonesian people want a democratic government that is committed to the rule of law. U.S. assistance promotes rule of law, anti-corruption, court reform and free and fair elections. Public diplomacy funding has introduced many Indonesians -- through education and exchange programs -- to U.S. democracy. Other programs provide training to build institutional capacity at the local level, improving the prospects for decentralization. This democratic transformation is far from complete, given limited local capacity and corruption, but it is well underway.

To strengthen justice sector institutions, the USG assistance continued to focus on strengthening the rule of law. The GOI demonstrated political will in naming reformers to leadership positions in key institutions (including the appointment of the head of the Human Rights Commission, the Minister of Law and Human Rights, and the Attorney General). Internal reforms however, are necessary to ensure that these institutions function with increased transparency, efficiency and effectiveness. The USG focused on the office of the Attorney General, where a legacy of entrenched corruption and a lack of public confidence complicate the reform process. With USG support, the office of the Attorney General is transforming its personnel and incentive structure to address these critical issues. Investing in People: Avian Influenza (AI) is now endemic in poultry populations in every province of the country. More than half the world’s human fatalities from AI are in Indonesia. Additional capacity building in health research might help us resolve an impasse over AI virus sample sharing. Indonesia has the third highest tuberculosis prevalence rate in the world. The USG-supported Tuberculosis Control Assistance Program has increased access to quality TB services through improved case notification. The program registered, treated and cured 89 percent of new pulmonary TB cases in FY07. The USG also supported the development of new National TB/HIV Strategy and Guidelines to improve case finding and management of TB/HIV co-infected patients. USG assistance increased the quality of maternal and child health services and counseling of pregnant women and mothers of children under five. Collaboration with medical professional associations, the National Clinical Training Network, civil society partners and local government health officials improved the quality and reach of training in maternal/newborn, child health and nutrition. Community health systems were strengthened through advocacy skills-building, the development of local health policies and training in monitoring and evaluation. Tropical forest management and biodiversity conservation have improved through USG support. Indonesia’s mega-biodiversity ranks top in global importance, and its economy depends heavily on natural resources and ecosystem services. The Orangutan Conservation Services Program – which is USG-funded – focuses on the protection of endangered animal populations, carbon-rich peat forests and biodiverse tropical rain forests in Sumatra and Kalimantan. In FY07, improved resource management in biologically significant areas benefited from a high level of support from community groups, local government and park authorities. These organizations support `decentralized, collaborative management of protected areas and high-value conservation areas. Partner support for clear land tenure, access to forest resources and valuable ecological functions helped conserve forest cover and rehabilitate degraded forests. We are on target for 190 university scholarship grantees in FY08 and FY09, if funding remains stable. Two additional English Language Resource Centers were opened, and thousands of English language teachers were provided USG-funded training and materials. An estimated 200,000 Indonesian students viewed the 25-part series “Colors of Democracy.” Economic Growth: The USG assisted the Ministry of Finance (MOF) Tax and Customs Office to develop new procedures that will increase tax revenues and streamline customs procedures. MOF capabilities to manage risk improved, thus making possible major debt restructuring this year. With USG support, the MOF Tax office established a new Directorate for Intelligence and Investigation, the first government department devoted entirely to the identification and investigation of major criminal tax offenders.

Issues of corruption and tax compliance continue to hinder broad-based economic growth in Indonesia. The USG-supported establishment of the compliance and internal investigation sections of the MOF resulted in early audits. These audits resulted in changes to MOF Tax databases and systems, as well as serious disciplinary action against several MOF Tax Office employees. The USG’s Financial Crime Prevention Project is designed to increase the ability of Indonesia to prevent financial crimes and to share information across agencies. One success was a new file sharing capacity linking the GOI’s Financial Intelligence Unit and the Indonesian Supreme Audit Body. Multi-agency training for Indonesia’s law enforcement agencies brought together financial service regulators, supervisors and judges, to master financial investigative techniques to combat transnational crime. 2008 and Beyond: The GOI remains committed to a broad reform agenda. Our mission is to support reforms and do what we can to help the GOI succeed. USG assistance is highly valued and needs to continue in order to accomplish our mutually-shared goals. Enhancing regional security and stability remains a top priority. The goals of transformational diplomacy require a partner that continues to support Indonesia’s commitment to peace and security, democracy and good governance and a more equitable and accessible social infrastructure. Together, we seek to help the GOI succeed as the 3rd largest democracy and largest Muslim majority country in the world by supporting political and economic progress. Tightly interwoven, our interagency efforts to promote political, economic, and education reform are integral to our broader democratization goals and counterterrorism strategy.

Page 01

Indonesia 2007 Performance Report

Operating Unit Performance Summary

The United States’ strategic interests in Indonesia are driven by the enormous challenges and opportunities that Indonesia presents: 240 million citizens, the fourth largest country in the world with a vast array of development challenges. Indonesia is a model for compatibility between a democratic political system and moderate Islamic thought. It has the potential to control sea lanes that link Europe, the Middle East and Asia; encompasses an archipelago of 17,000 islands, substantial natural resources and is a depository for the world’s biodiversity. These challenges and opportunities have serious implications for key US strategic objectives: fighting terrorism and preserving stability in Asia; promoting democracy, religious tolerance and respect for human rights; improving access for our exports and investments; and protecting the large expanses of rainforest and coral reefs -- much of which are under threat. Indonesia is also on the front lines of the global fight against avian influenza and HIV/AIDS. Despite its clear progress towards shared GOI-USG goals over the past two years, Indonesia’s success is not guaranteed. Economic, political, and security institutions remain weak and vulnerable to corruption and pressure from special interests. Few of Indonesia’s newly empowered local governments possess the capacity to implement meaningful reforms in areas ranging from governance to basic service delivery. US foreign assistance programs will remain a crucial tool for helping institutions at all levels develop the capacity to transform Indonesia into a stable, prosperous, and more just society. Our programs: a) maintain and promote peace and security in Indonesia, which is critical to US national interests. USG efforts diminish Indonesia\'s role as a potential source of terrorism, human trafficking and disease. Poverty, radical religious influences and a poor education system work against our goal of keeping Indonesia moderate and friendly; b) strengthen the justice and legislative sectors; address corruption; strengthen governance at national and local levels; promote civic dialogue and participation; promote peace and reconciliation work in provinces such as Aceh; and tackle pervasive corruption; c) support basic services, including education, provision of quality health care, clean water and a healthy environment. We will continue to focus on health care, clean water and sanitation under the President’s Water for the Poor initiative, as well Program Area Performance \ 1 Peace & Security \ 1.1 Counter-Terrorism With USG assistance, the Indonesian National Police (INP) continued to expand its capacity to interdict terrorist groups and respond to terrorist activities this past year. The USG coordinated a multi-agency needs assessment for the Indonesian National Police and provided a wide array of training and technical assistance. As a result, more than 240 Indonesians received USG-funded training in courses which provided methodologies and techniques for tracking terrorist movements and managing complex terrorism related cases. Units trained with USG-assistance were involved in several significant anti-terror operations during the course of FY07 include those in Poso, Yogjakarta, and Surabaya. They were also involved in the the arrest of one of Indonesia\'s most wanted terrorists, Abu Dujana. Program Element Performance \ 1 Peace & Security \ 1.1 Counter-Terrorism \ 1.1.3 Governments’ Capabilities In FY07, the USG provided training and equipment to the INP Cyber Unit to increase it’s capacity in

Page 02

interdicting terrorist activities forensic processing of evidence obtained in the course of terrorist investigations. Three additional Regional Police Headquarters now have civilian law enforcement tactical response capabilitiy as a result of training for forty-nine Crisis Response Team officers. In the United States, six INP Canine Handlers and dogs were trained in the detection of explosives. Fifteen veteren bomb technicians received training in Advanced Explosive Incident Counter-measures. Three Poldas (Maluku, Suluwesi and Bali) received bomb technician equipment grants which included remote controlled robots. Program Area Performance \ 1 Peace & Security \ 1.2 Combating Weapons of Mass Destruction (WMD) While FY07 was characterized by slower than anticipated progress due to a lack of funding and GOI resistance, notable results in building and enhancing government capabilities to counter WMD proliferation were accomplished. A number of USG initiatives, such as the Proliferation Security Initiative, were met with strong GOI opposition during the year. However, through the Export Control and Related Border Security mechanism, USG assistance resulted in the transfer of key technical skills which increased the GOI’s capacity to implement the legal, regulatory and institutional infrastructure necessary for implementation of an effective WMD control regime in Indonesia. Assistance not only provided key training and technical support, but also raised issues important to the US in the area of nonproliferation and export controls. Future interventions in this Area will target GOI enforcement capacity and commitment to strengthening the legal framework. Program Element Performance \ 1 Peace & Security \ 1.2 Combating Weapons of Mass Destruction (WMD) \ 1.2.1 Counter WMD Proliferation and Combat WMD Terrorism USG-funded training throughout 2007 provided a basic understanding of proliferation and export controls issues to key GOI officials at all levels. An interdiction course provided practical training in a wide range of seaport enforcement topics with emphasis on a multi-layered enforcement posture. Practical exercises included the search of maritime cargo and vessels. Political commitments to establish a comprehensive export control system consistent with international standards were obtained as a result of a US hosted a “Senior Policy Exchange” in Washington, D.C. for high-level GOI officials who expressed interest in legal and enforcement training. Through the exchange, these high-level officials were familiarized with the essential elements of an effective export control system using the US export control system as a reference. The ability to effectively search maritime cargo and vessels was strengthened through “International Seaport Interdiction Training” (ISIT) at a port in Jakarta. The course is comprised of classroom and practical training in a wide range of seaport enforcement topics with emphasis on a multi-layered enforcement posture. Practical exercises included hands-on searching exercises of maritime cargo and vessels. Element Indicator Narrative \ 1 Peace & Security \ 1.2 Combating Weapons of Mass Destruction (WMD) \ 1.2.1 Counter WMD Proliferation and Combat WMD Terrorism On target. Projections on track for control systems to be in place in FY08.

Page 03

Program Area Performance \ 1 Peace & Security \ 1.3 Stabilization Operations and Security Sector Reform FY07 assistance in this area continued to benefit Indonesian defense reforms and operations. As result of military-military relations being re-established in 2005. Defense reform and operations within Indonesia are critical in the Global War on Terrorism, as well as longer-term goals of regional stability and economic development. At the same time, USG resources continued increasing the capacity of the Indonesian National Police (INP). Results in the INP implementing law enforcement restructuring and operations were measurable and significant. Historical property right seizures were conducted. Effective internal protocols for the investigation of officers involved in criminal activities and corruption were initiated upon revision of the INP Ethics and Disciplinary Codes. In addition, through other USG initiatives to improve the effectiveness of anti-corruption efforts, the INP will integrate internal affairs functions under the Inspector General’s office in the coming year. Program Element Performance \ 1 Peace & Security \ 1.3 Stabilization Operations and Security Sector Reform \ 1.3.6 Defense, Military, and Border Restructuring, Reform and Operations In FY07, USG assistance began to have an impact on Indonesian Military reform efforts. Until 2005, USG military-military restrictions severely limited the ability to aid Indonesia in restructuring the institution. Up to one-third of Indonesian military officers have not yet received USG training. Since the lifting of restrictions, USG assistance in this area has largely focused on reestablishing the relationship. Efforts in FY07 facilitated the complicated but critical process of reestablishing a healthy military-military relationship and set the conditions for assistance in priority areas of defense reform and border restructuring. As the relationship improves, increased assistance under this element will ensure that the USG is able to firmly support the GOI and Indonesian military efforts at long-term, substantive reform. Program Element Performance \ 1 Peace & Security \ 1.3 Stabilization Operations and Security Sector Reform \ 1.3.7 Law Enforcement Restructuring, Reform and Operations In FY07, the results of USG assistance to the INP continued to be significant. INP capacity to address trafficking in persons improved. The USG’s Point of Origin Trafficking in Persons assistance produced seamless service between victims, NGO victim advocates and the INP. The assistance received international attention and expanded through bi-lateral programs with France and Malaysia. In addition, fifteen (15) patrol boats were procured for the Marine Police Special Boat Units (MPSBU) and ten (10) are now operational in critically high trafficking threat areas of the archipelago. During the year, training in intellectual property rights also produced significant results. With direct USG assistance, the INP made the largest DVD factory raid and IPR seizures in South East Asian history and, globally, the largest illegal pharmaceutical seizures ever recorded. USG management systems assistance resulted in the INP adopting the Standard Emergency Management Systems (SEMS). The SEMS was designed in collaboration with the Department of Justice to respond more effectively to natural disasters and major crisis, and the integration of mid-level management curriculum into senior-level training institutions. Through assistance in curriculum framework development, a structure for the national training reform and standardization was developed and will be continued in the next fiscal year. Forensic capacity was also increased, with the establishment of a Surabaya DNA laboratory and the

Page 04

training of its staff. Element Indicator Narrative \ 1 Peace & Security \ 1.3 Stabilization Operations and Security Sector Reform \ 1.3.7 Law Enforcement Restructuring, Reform and Operations Data collected for U.S.G. measurements tracking FY07 performance indicates that results exceeded targeted values for: Number of law enforcement facilities built, refurbished, equipped with USG assistance; Number of law enforcement officers trained with USG assistance and; Number of programs conducted to enhance police management with USG assistance. No other measurements are currently used to track progress of this element. One implementing mechanism is contributing to these values. While the Office of the Indonesian National Police\' Forensic Laboratory in Surabaya was targeted and successfully completed, targets of opportunity allowed the mechanism to refurbish the ICITAP office in Mabes Polri (Police HQ) as part of the Curriculum Framework Development Project, as well as an office in the Ministry of Industry to support Optical Disc Regulation enforcement. As a result, the number of law enforcement facilities built, refurbished, equipped with USG assistance was three (3) which is two higher than the FY07 projected value. During the year, efforts were refocused to increase the capacity of law enforcement officers in Anti-Corruption and Management Systems. To meet these needs, USG assistance doubled (to 4) the number of programs conducted to enhance police management. Program Area Performance \ 1 Peace & Security \ 1.4 Counter-Narcotics In FY07, the USG continued to provide support to the INP for the interdiction of narcotic production and trade. In recent years Indonesia has experienced a major increase in the production, transshipment, trafficking and consumption of narcotics. Specifically, since 2002, Indonesia has seen a significant increase in the number of large-scale clandestine MDMA and methamphetamine laboratories seized by Indonesian authorities. FY07 assistance was targeted to increase the interdiction capacity of the National Narcotics Bureau (BNN) and the Indonesian National Police (INP). A central intelligence center at BNN HQ and out stations were deployed and are now operational, allowing CN intelligence capacity to assist in interdicting and dismantling major narcotics operations and syndicates. FY08 efforts will further expand and augment interdiction capacity. Both the BNN and the INP have demonstrated the political will and the operational capacity to address these issues and have already directly benefited from USG assistance. Program Element Performance \ 1 Peace & Security \ 1.4 Counter-Narcotics \ 1.4.3 Interdiction Over the past year, Indonesian authorities continued to seize large-scale clandestine methamphetamine and MDMA laboratories, indicating that Indonesia is quickly becoming a manufacturing site for narcotics. The Indonesian National Police seized one of the largest recorded methamphetamine seizures in the world -- 956 kilograms. According to INP arrest data, 14,105 cases were submitted for prosecution for drug possession, trafficking and manufacturing. Over 1,365 kg of narcotics and 1,785 kg of precursor chemicals were seized as a direct result of USG assistance. Element Indicator Narrative \ 1 Peace & Security \ 1.4 Counter-Narcotics \ 1.4.3 Interdiction

Page 05

Data collected for U.S.G. measurements tracking FY07 performance indicates that results exceeded targeted values for the number of law enforcement officers trained with USG assistance to develop counter narcotics operational capacity. No other measurements are currently used to track progress of this element. One implementing mechanism is contributing to these values. During the year, DEA efforts with inter-agency assistance from JIATF West increased the effectiveness and operational capacity of the GOI National Narcotics Bureau and the Indonesian National Police. As a result of increased inter-agency cooperation and additional opportunities, the number of law enforcement officers trained with USG assistance to develop counter narcotics operational capacity exceeded projections by 156% or 140 Indonesians. Program Area Performance \ 1 Peace & Security \ 1.5 Transnational Crime In FY 07, USG assistance in this area increased the capacity of Indonesia’s agencies to address financial crime prevention and strengthened the linkages between Indonesian financial crime prevention agencies. A very important linkage resulted from a USG-facilitated MOU that increases information-sharing between the Financial Intelligence Unit and the Indonesian Supreme Audit Body. Program Element Performance \ 1 Peace & Security \ 1.5 Transnational Crime \ 1.5.1 Financial Crimes and Money Laundering Indonesian law enforcement agencies received tools to combat financial crime and build greater inter-agency collaboration. Through a series of multi-agency trainings, officials were brought together and instructed on modern financial investigative techniques. To strengthen skills, other courses such as Basic Banking Operations, Asset Tracing and Forfeiture concepts, Regional Attorney General’s Office training on Anti-Money Laundering and Basic Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) were provided. It is expected that in FY 08, FCPP will conduct an advanced training course, as well as provide a Certified Anti-Money Laundering Specialist certification course to 30 key GOI professionals. In addition to training, multiple forms of technical assistance which help increase capacity to combat financial crime, were provided. For instance, USG-funded advisors drafted a five-year Strategic Plan for the Ministry of Finance\'s Inspectorate General, the Supreme Audit Board\'s Investigative Audit Unit was established and the Corruption Eradication Commission was assisted in building its asset recovery team. Program Element Performance \ 1 Peace & Security \ 1.5 Transnational Crime \ 1.5.3 Trafficking-in-Persons and Migrant Smuggling During FY07, a comprehensive anti-trafficking law was passed by the Indonesian Parliament on March 20, and was endorsed by the President on April 19, 2007. The USG provided key technical assistance to the Ministry of Women\'s Empowerment and Parliament during the development and deliberations of the anti-trafficking legislation. USG support was instrumental to the passage of this law, which provides a powerful tool in efforts to prosecute and convict traffickers. This achievement moved Indonesia from Tier 2 Watch List status to Tier 2 status in the 2007 Department of State Trafficking in Persons Report. Element Indicator Narrative \ 1 Peace & Security \ 1.5 Transnational Crime \ 1.5.1 Financial Crimes and Money Laundering

Page 06

Data collected for U.S.G. measurements tracking FY07 performance indicate that results exceeded targeted values for the number of people in host country trained on money laundering or financial crimes. The actual FY07 result was equal to the targeted value of Financial Intelligence Unit supported in country with USG assistance (yes/no). In last year’s operation plan submission, no projected value was provided for the number of specific improvements in regulatory structure supported with USG assistance. However, and actual FY07 result is provided in this report No other measurements are currently used to track progress of this element. One implementing mechanism is contributing to these values. In FY07 an academic paper was prepared as background analysis for the draft Asset Forfeiture (Recovery) Law. This draft law was recently determined to be one of the legislative priorities by the Parliament. Assistance on asset tracing policy and procedures are progressing and are due for completion at the beginning of FY 08. Due to increased capacity and oversight of host government financial crime prevention agencies, the number of Suspicious Transaction Reports (STRs) filed in FY07 increased substantially. In FY07 there was a 51.1% increase in total STRs (from a 5,800 base) and with 90% of the commercial banks complying with money laundering reporting obligations as required by law. As of September 2007, there were a total of 11,347 STRs filed Element Indicator Narrative \ 1 Peace & Security \ 1.5 Transnational Crime \ 1.5.3 Trafficking-in-Persons and Migrant Smuggling Data collected for U.S.G. measurements tracking FY07 performance indicate that results exceeded targeted values for: the number of people in host country trained on TIP related issues with USG assistance and; the number of public awareness campaigns about TIPs completed. The actual FY07 results were below the targeted value for: the number of shelters/safe houses established for TIP victims that are supported with USG assistance and the number of TIP victims assisted by USG programs No other measurements are currently used to track progress of this element. One implementing mechanism is currently contributing to these values and three historically. Confusion in the Operational Plan process resulted in FY07 projected values based on FY07 (NOA) resources only. Consequently, actual results appear significantly higher for the number of people in host country trained on TIP related issues with USG assistance and the number of public awareness campaigns about TIPs completed. Because of a shift in assistance priorities, FY07 results only reached 5% (16 TIP victims) of the FY07 targeted value. Responding to targets of opportunity, USAID refocused its assistance to take advantage of new momentum on the passage of a TIP law which is an important tool for prosecution and conviction of traffickers. Resources shifted to advocacy for the law and technical assistance to the Ministry of Women\'s Empowerment and the Parliament. As a result, this landmark anti-trafficking law was passed by Parliament. FY08 targets have been adjusted down, as resources will be directed to assisting GOI on implementation of the law. Action plans required for the delivery of service provider institutions are not yet in place. These actions plans are required in order for the GOI to issue service provider guidelines. As a result, there were no shelters/safe houses established for U.S.G. supported TIP victims. A new U.S.G. Anti Trafficking

Page 07

mechanism supports the GOI in establishing the local action plans. The revised projected value for FY08 has doubled. Program Area Performance \ 1 Peace & Security \ 1.6 Conflict Mitigation and Reconciliation In FY07, due to resource constraints, assistance was mainly focused on Aceh Province in support of the Peace Process between the Free Aceh Movement and the Government. Local capacity to advance the peace process, without external support, remains weak. Ongoing trust-building activities continue and serve to provide the platform upon which long-term, sustainable peace will be achieved. Incidents of conflict, especially involving former combatants, and criminality involving assault weapons, continue to increase in Aceh. Further assistance to local institutions is required and local capacity to address and mitigate incidents of violent conflict as part of the peace process must continue. Support assists in broadening the public discourse about long-term peace beyond economic growth, to include discussion on the Truth and Reconciliation Commission, Human Rights Court and other issues related to social justice and post-conflict well-being and participation of former combatants. A key achievement under this area was the peaceful administration of the first-ever election in Aceh (December 2006) and the subsequent transfer of power to a newly-elected and legitimate leader. Program Element Performance \ 1 Peace & Security \ 1.6 Conflict Mitigation and Reconciliation \ 1.6.2 Peace and Reconciliation Processes While limited resources resulted in support being focused solely in Aceh Province in FY07, the USG remained one of the largest donors in support of the Peace Process. It continues to maintain a unique and strategically close relationship with the Aceh Governor and his senior leadership team. The USG was approached by these senior leaders during the year and requested to continue engagement in the peace process. In FY07, support included placement of expert technical advisors in governance and peace-building, funding for the Aceh Peace Reintegration Agency, and substantial capacity support for the Aceh Peace Reintegration Agency (BRA). USG assistance supported the Aceh Peace Resource Center (APRC), a policy analysis and advisory group for the Governor’s Senior Team on the Peace Process. Support covers more than 20 APRC staff members, key BRA leaders, a series of workshops and meetings between former rebels and GOI representatives, a tracking matrix for donor coordination, a resource center, and other related trust-building activities among all stakeholders involved in the conflict. Element Indicator Narrative \ 1 Peace & Security \ 1.6 Conflict Mitigation and Reconciliation \ 1.6.1 Conflict Mitigation Activity just awarded. No adjustments to FY08 projected measurements. Element Indicator Narrative \ 1 Peace & Security \ 1.6 Conflict Mitigation and Reconciliation \ 1.6.2 Peace and Reconciliation Processes Activity just awarded. No adjustments to FY08 projected measurements. Program Area Performance \ 2 Governing Justly & Democratically \ 2.1 Rule of Law and Human Rights

Page 08

In FY07, the joint resources of multiple USG agencies were directed to this sector and produced notable results. The success of Indonesian efforts in economic restructuring, democratic reform and fighting corruption and terrorism (among many others) are dependent on an effective justice system. During the course of the year, the GOI demonstrated political will in naming reformers to leadership positions within key institutions (including the appointment of the head of the Human Rights Commission, the Minister of Law and Human Rights, and the Attorney General). However, internal reforms are necessary to ensure that these institutions function with increased transparency, efficiency and effectiveness. A considerable challenge has been the changing environment. The appointment of the new AG resulted in subsequent changes in AGO personnel. The turnover and vacancies led to numerous delays. During the year, assistance was targeted on reform within the Attorney General’s Office (AGO), which suffers from a legacy of entrenched corruption and a lack of public confidence. Both the former and recently named Attorney General have articulated a commitment to reform, and understand the need to overhaul the internal functioning of prosecutorial service. Through USG support, the AGO is transforming its personnel and incentive structure to address these critical issues. As a result, the AGO’s Terrorism and Transnational Crimes Task Force was established, and successfully prosecuted 35 terrorists and 20 TIP cases in its first year. Next year the task force model will expand to include corruption. Specialized courts in the process of reforming also benefited from USG assistance. With USG support, the Constitutional Court (MK) has emerged as the central example of effective court reform through its demonstration of significant independence in decision-making. Technical assistance, training and the initiation of a case management system are increasing the transparency and effectiveness of the Indonesian commercial and anti-corruption courts. USG assistance supported four legislative drafting sessions and led to one US study visit this year, with an Indonesian working group drafting a new criminal procedure code. These sessions led to major changes to the draft code that liberalizes the rules of evidence, provides for adversarial proceedings, eliminates the preliminary investigation, provides for legal wiretapping and emergency search authority, establishes rules Program Element Performance \ 2 Governing Justly & Democratically \ 2.1 Rule of Law and Human Rights \ 2.1.3 Justice System During FY07, the USG capitalized on new openings within the Attorney General’s Office (AGO) and refocused justice system reform efforts on this important institution. AGO reform has become a GOI priority and the new leadership within the institution seems committed to institutional reform. This was demonstrated by the issuance of Attorney General directives overhauling significant processes such as recruitment, promotion, staff development and training, code of conduct and minimum professional standards. The USG supported the AGO in disseminating these decrees and implementing the reforms. In addition, support to the AGO Training Center provided a refresher course for senior prosecutors. In addition to successes in the AGO, FY07 ended with notable results from USG assistance for Indonesian court reforms. Through a combination of its commitment to reform and support from USG and other donors, the Constitutional Court strengthened its internal systems and took on important legislative issues facing the country. The MK proactively encouraged a variety of measures to increase transparency and reduce the possibility of corruption. To increase transparency, the USG supported Court efforts in improving the quality and quantity of public information about the institution. As a result, the MK’s

Page 09

website, for example, now contains detailed and timely information, with Court decisions being posted on the day they are issued. Increased transparency of court practices also resulted from the creation of a web-based information kiosk for the Commercial and Anti-Corruption Courts. Over 600 Indonesians in the justice sector directly benefited from USG-funded training. During the year, the USG doubled the projected levels of prosecutor training through the creation of regional training trial advocacy, cybercrime and witness protection mechanisms. To support commercial courts, a series of workshops and trainings for judges and other court staff were provided. It is anticipated that the education and training model developed for the Commercial Courts will be adapted to the Anticorruption Court once legal and political issues are resolved. Other key education and training activities to these courts included workshops on Case-flow Management, Information Technology, Human Resources and Budgeting and Financial Management. Element Indicator Narrative \ 2 Governing Justly & Democratically \ 2.1 Rule of Law and Human Rights \ 2.1.3 Justice System The number of justice sector personnel that received U.S.G. training exceeded the projected target by 207% or 418 individuals. Results from all three mechanisms contributed to the increase. Accelerated implementation of assistance, double counting and miscalculated targeting contributed to the increase. Projections for FY08 are increased for two mechanism and decreased for one. The result is an aggregate revision upward. Gender grouping values are now collected for all three mechanisms. Based on an activity-related assessment of the Anticorruption and Commercial Courts, it was determined they are specialized dockets within five District Courts and not stand-alone courts as previously classified. Consequently, the targeted pool of courts is reduced to five. The other mechanism contributing to this measurement will discontinue in FY08. No supportable data is available for the ratio of new case filings to case dispositions in courts assisted by U.S.G. in the area of case management. Examination of existing Manual Systems within five Model Courts indicated that statistics were neither correctly reported nor capable of verification. It will not be possible to determine the necessary values until installation of the project\'s first computerized case management system in FY 08. It is estimated this system will be operational in the first Model District Court by end of FY08. Therefore, verifiable statistics of existing cases, new case filings and case disposition rates will not be available until the beginning of FY 09 Program Area Performance \ 2 Governing Justly & Democratically \ 2.2 Good Governance FY07 success under this area can be characterized by strong but mixed results. Over the past decade, dramatic and sweeping democratic reforms have taken place in Indonesia. This is particularly true in terms of decentralizing the political process. However, much more work is necessary in order to fully implement these reforms. The capacity of the national government to increase the efficiency and transparency of legislative functions and processes needs to increase. Local government constituencies continue to demand better delivery of services and more accountability, but many still lack the capacity to respond. Given the incredible size and diversity of Indonesia, progress in strengthening local governance varied significantly by geographic location. Strengthening local governance and decentralization continued to be a primary focus of USG support under the Governing Justly and Democratically Objective. The sheer scope

Page 010

of assistance in this sector and the demands of coordination among numerous GOI entities at the national and local levels, presented many challenges to implementation over the past year. However, considerable progress was made in building the capacity of 60 local government entities and contributing to national-level decentralization policies. The USG and other donors met with some challenges in working with the Regional Representatives Council/Upper House of Parliament (DPD). The primary issue is that the institution is not fully empowered by the GOI and lacks significant legislative authority. USAID supported the DPD in its constitutionally-mandated role for regional laws and, as a result, DPD is beginning to take up its role as the lead in regional governance reform, including on key sensitive issues of territorial reform and establishment of new regions. Program Element Performance \ 2 Governing Justly & Democratically \ 2.2 Good Governance \ 2.2.1 Legislative Function and Processes FY07 assistance for the two national parliamentary bodies, the DPR and the Regional Representative Council (DPD) strengthened their capacity to carry out key legislative and representative functions and act as a democratic check on the executive. As a result of this assistance, the DPR embarked on a range of reform initiatives that will improve legislative and institutional performance. In addition, DPD began developing its ability to represent regional interests. More inclusive law-making processes resulted from USG support to the DPR. Technical support on 13 bills critical to democratic consolidation allowed the DPR to engage civil society organizations, legal-drafters, advocates and other stakeholders in the drafting and implementation processes. The quality of legislation improved through ongoing training and mentoring of the DPR legislative council (BALEG) and other bodies responsible for drafting and reviewing legislation. Assistance also strengthened internal reform efforts of the DPR, which led to recommendations for legislative, budget and personnel reform. USG support to the DPD in developing a sustainable communication strategy and engage effectively in constituent outreach continued over the past year. To date, seven regional pilots have been conducted to support constituent outreach. In addition, TV and FM radio broadcasts have been developed and launched for DPD. Program Element Performance \ 2 Governing Justly & Democratically \ 2.2 Good Governance \ 2.2.3 Local Government and Decentralization While major challenges including weak local leadership, lack of qualified local providers of government training/assistance, and complicated national policies and regulations persist, FY07 assistance resulted in notable successes. Support for decentralization and local government had a direct and significant impact on representative and responsive local governance, delivery of local goods and services and national decentralization policy. Strengthening the capacity of local governments to respond to citizen priorities and improving public services remained priorities. In addition, the USG placed new emphasis on partnerships with central government and provided assistance to strengthen the enabling environment for decentralization. During the year, the USG provided planning, budgeting and financial management assistance to 60 local government entities, including the executive branch, local legislative councils and civil society. As a result, 29 local governments implemented improved budget practices. Thirty-seven locally elected councils

Page 011

organized public hearings or town hall meetings and 151 citizen groups actively monitored local government performance. In addition, 28,000 individuals (35% women) participated in local governance trainings. In the priority region of Aceh, local government performance lags behind other parts of Indonesia. In FY07, all five Aceh district governments assisted by the USG met or exceeded national government standards for plan and budget preparation. In addition, executive training was held for newly-elected leaders in all 22 of Aceh’s districts and cities. This training was extended to 3 districts in West Papua with $500,000 in leveraged private sector funds. Despite weak coordination and little consensus among ministries, the GOI made progress in the implementation of decentralization policies. Bolstered by a USG-funded decentralization study, the GOI identified a series of reform priorities, including village governance and civic participation. Fifteen public policy consultations and fora enabled NGOs and local governments to bring their views to the attention of national policy makers. Driven by local government demand for greater clarity, eight national implementing regulations on regional planning, budget preparation, citizen participation, performance measurement, local capacity development and minimum service standards were initiated or developed with USG assis Element Indicator Narrative \ 2 Governing Justly & Democratically \ 2.2 Good Governance \ 2.2.3 Local Government and Decentralization Data collected for U.S.G. measurements tracking FY07 performance indicate that results exceeded targeted values for: Number of Individuals Who Received USG-Assisted Training, including management skills and Fiscal Management, to Strengthen Local Government and/or Decentralization; Number of Laws or Amendments Promoting Decentralization Drafted with USG Assistance and; Number of Local Mechanisms Supported with USG Assistance for Citizens to Engage their Sub- national Government. The actual FY07 results were below the targeted value for: the Number of Local Non-Governmental and Public Sector Associations Supported with USG Assistance and Number of Sub-national Government Entities receiving USG assistance to Improve their performance but both were within range. No other measurements are currently used to track progress of this element. One implementing mechanisms is currently contributing to these values. During the year, a high demand for U.S.G.-assisted training was fueled by the passage of two new national regulations on accounting standards and financial management for which local governments were required to comply by early 2007. As a result, the actual number of individuals who received USG-assisted training exceeded projected values by 263% or 21,070 Indonesians. Individuals may be counted more than once if they participate in distinctly different trainings at different times and on different topics. Analysis is under way to determine the weight this has on the return. FY08 project values are targeted upwards. Program Area Performance \ 2 Governing Justly & Democratically \ 2.3 Political Competition and Consensus-Building In FY07, the USG continued to support an area of Indonesia\'s democratization process that can be characterized by the vibrant, engaged, and often chaotic exchanges regarding the framework for political competition in the lead-up to the 2009 elections. Ongoing debates centered around the four political laws (political party law, legislative and presidential election law, and law on the structure and functions of legislatures), which will be the foundation for competitive and impartially administered elections. The USG provided significant resources to these debates and the overall competition of ideas by supporting a

Page 012

legislative process that is more inclusive and provides for public consultation. The electoral administration law was revised over the past year, clarifying and strengthening the role of the KPU -- Indonesia\'s General Election Commission. The Constitutional Court recently ruled that it was permissible for \"independent\" (non-party-nominated) candidates to contest elections. These decisions reflect the dynamic environment in the arena of political competition. This is a positive indication that Indonesia is continually fine-tuning its electoral system and responding to a fluid environment; however, it also presents challenges, as these changes place a strain on nascent institutions and their administrative capacity. Political parties play a key role in political competition, and the USG is the first donor country to engage Indonesian parties in preparation for 2009. Support is helping parties develop policy agendas and expand outreach to under-represented groups. The major political parties are dominated by entrenched political elites. Program Element Performance \ 2 Governing Justly & Democratically \ 2.3 Political Competition and Consensus-Building \ 2.3.2 Elections and Political Processes FY 2007 saw major changes and achievements in Indonesia\'s political legal framework. The Law on Election Administration was passed, and the four political laws for 2009 elections (i.e. Political Party law, the Legislative and Presidential Election laws, the Law on Structures and Functions of the Legislature) progressed to DPR deliberations. The Constitutional Court ruling that non-political party (independent) candidates can contest local elections, has major implications for the future of the electoral process, as well as the development of political parties in Indonesia. USG support in Aceh played a pivotal role in peacefully contested elections that led to the formation of a new provincial government with a legitimate mandate from the people. The December 2006 Aceh Gubernatorial election and the election of 19 executive heads, marked an important milestone in bringing political stability to the country and moving the Aceh peace process forward. USG support to civil society advocacy groups participating in drafting and deliberation processes was a major factor in passing the new Law on Election Administration. The law ensures the independence of the Election Commission (KPU) and strengthens its role by legitimizing its authority over local elections in addition to national elections. In addition, USG-supported public discussions which promote a participatory and accountable selection process for KPU members resulted in an opportunity for the public to assess the candidates and provide feedback. Program Element Performance \ 2 Governing Justly & Democratically \ 2.3 Political Competition and Consensus-Building \ 2.3.3 Political Parties As the first bilateral donor to initiate political party support for the 2009 elections, USG assistance targeted reforms that strengthen party structures and capacities to become more responsive to citizens\' needs. Results from this assistance are already being achieved. One example is the establishment of a “political party reform taskforce” consisting of representatives of senior political party leaders and prominent NGOs. Involvement in the task force indicates serious commitment by party leaders on these issues. The goal of the task force is to provide recommendations for political party reform in financial management. The task force is also charged with assuring that women and other marginalized groups are represented. The USG also

Page 013

provides the Inter-Party Women’s Coalition of Indonesia (KPPI) assistance which increases their capacity to effectively promote the entrance of women into politics and the ability of women to secure party nominations. During the year support also helped political parties improve their communications and constituent outreach functions. Emphasis was placed on moving away from personality-driven politics into issue and policy-based campaigning. The USG assessed that there was increased willingness and receptivity from political parties on this issue. The GOI has not yet passed the political party law, which is one of the four political laws that govern the 2009 elections. Political parties will formulate much of their strategies, conduct training, field candidates, etc., based on the law. Continued delays will be a serious impediment to party development. USG staff will continue to monitor progress. Element Indicator Narrative \ 2 Governing Justly & Democratically \ 2.3 Political Competition and Consensus-Building \ 2.3.2 Elections and Political Processes Quantitative reporting under this element will not being until FY08. Two implementing mechanisms are in the initial stages of implementation. FY08 projected values are established for: Number of Domestic Election Observers Trained with USG Assistance; Number of Election Officials Trained with USG Assistance; Number of Electoral Administration Procedures and Systems Strengthened with USG Assistance; Number of People Reached by USG Assisted Voter Education. Element Indicator Narrative \ 2 Governing Justly & Democratically \ 2.3 Political Competition and Consensus-Building \ 2.3.3 Political Parties The FY07 result for the number of Individuals who Receive USG-Assisted Political Party Training was significantly higher than the projected value. Confusion in the Operational Plan process resulted in FY07 projected values based on FY07 (NOA) resources only. Assistance was conducted for national and provincial level party trainings using FY06 funds. Particular emphasis was placed on Aceh in the lead up to the first-ever local election in December 2006. Gender groupings do not include values from the Aceh trainings. The new political party strengthening program received FY07 funding at the end of the fiscal year and the results will be reported under FY08. The new NDI Peaceful Political Competition program received FY07 funding at the end of the fiscal year and the results will be reported under FY08. The FY07 result for the number of political parties and political groupings receiving USG assistance to articulate platform and policy agendas effectively was two times higher than the projected value. This was also true for the number of USG-assisted political parties implementing programs to increase the number of candidates and members who are women, youth and from marginalized groups. Confusion in the Operational Plan process resulted in FY07 projected values based on FY07 (NOA) resources only. Party support in four provinces was provided with FY06 funding. While the indicator reflects only national level parties (10) support actually reached 30 provincial chapters of national parties. Program Area Performance \ 2 Governing Justly & Democratically \ 2.4 Civil Society

Page 014

In FY07, the USG initiated a new implementing mechanism to increase civic participation in Indonesia. Results will be recorded in the coming year. Indonesia’s vibrant civil society remains a key part of the democratic consolidation process in the country. Numerous civil society groups continue to act as checks on the government by advocating for reforms and monitoring progress. Though the USG supports civil society in numerous ways (e.g. human rights advocates, election watchdogs), the explicit focus under this area is the promotion of a strong civic culture. Fostering a civic culture that promotes tolerance and embraces pluralism is essential, given Indonesia’s diverse and sizeable population. While Indonesia has a tradition of tolerance embodied in the national philosophy, ethnic and sectarian tensions at the local level continue to arise. This year saw the enactment of local Sharia-related regulations in at least 16 districts. These threaten to undermine the rights of women and reinforce intolerant attitudes. Through the new mechanism, the USG will provide assistance that fosters civic participation and promotes pluralism. Program Element Performance \ 2 Governing Justly & Democratically \ 2.4 Civil Society \ 2.4.1 Civic Participation In FY07 a new implementing mechanism was implemented to foster a strong civic culture and engage civil society in advocacy for pluralism and tolerance. As FY07 funds were not received until September 2007, no activity took place during the fiscal year. Through this program, the USG will work with civil society organizations and government institutions to strengthen democratic civic culture, focusing on respect for pluralism, religious diversity and the rights of women and minority groups. Activities will include: civic education, advocacy, engaging individuals and traditional leaders and building networks to support tolerance and pluralism. Grants will also be provided to Indonesian NGOs to: 1) advocate for changes to laws and regulations related to pluralism; 2) encourage civil society organizations to form partnership with government to promote positive changes; and 3) support efforts of key national level ministries to provide effective education for local-level officials to implement laws and regulations related to pluralism. The mechanism will employ a community-based approach, placing local Community Development Officers in four of its 36 target communities in the provinces of West Java, Central Java, and Banten. Element Indicator Narrative \ 2 Governing Justly & Democratically \ 2.4 Civil Society \ 2.4.1 Civic Participation No quantitative results will be reported under this indicator until FY08.An implementing mechanism under this element currently in the start-up phase. Targeted values are established for: Number of CSO Advocacy Campaigns Supported by USG; Number of participants in USG-funded programs supporting participation and inclusion of traditionally marginalized ethnic minority and/or religious minority groups and; Number of USG Assisted Civil Society Organizations that engage in advocacy and watchdog functions. U.S.G. assistance has been engaged in discourse with political parties about involving women, youth, and marginalized groups, the parties with whom they’ve engaged are awaiting passage of the Political Law and Elections Bill before implementing specific programs. These laws will determine key issues, including nominating thresholds and gender-specific quotas. The FY 08 target has been adjusted to reflect an increase in the number of parties with whom U.S.G. partners will work next year, given the delays in the passage of the law this year. Program Area Performance \ 3 Investing in People \ 3.1 Health Indonesia has significantly reduced child mortality and increased contraceptive coverage during past

Page 015

decades, but continues to be burdened with high rates of maternal/neonatal mortality and tuberculosis, wide disparities in access to health care and poor quality primary health services. Indonesia’s health programs have struggled under the new decentralization legislation devolving budget and program authority to districts. In FY07, USG maternal, neonatal and child health (MNCH) assistance continued to focus on strengthening advocacy, management capacity, service delivery and commodity systems in 31 districts across six provinces. National-level impact was targeted through policy dialogue and the development of national standards and curricula. The USG also supported a growing private midwife franchise program that improves the standardization and quality of reproductive health services. During the year, coverage of MNCH services increased to include diarrhea treatment, hand-washing, malaria control among pregnant women and children, skilled birth attendance, active management of third stage labor, immediate breastfeeding and postpartum/newborn care. USG support of family planning focused on improving commodity management at the district level and strengthening the sustainability of private midwife services. USG support of the polio surveillance system helped Indonesia maintain polio-free status for nearly two years. USG support increased access to clean water and sanitation through improved piped water systems, point-of-use water and strategic city-wide sanitation plans. The national tuberculosis program was strengthened with USG support; case notification and treatment success rates were high and international quality control standards and guidelines for Multi-Drug Resistance (MDR) and for identifying and managing TB/HIV co-infection were established. The USG’s HIV/AIDS program focused on prevention and behavior change, links to treatment and care of Most-at-Risk Populations in eight provinces, the strengthening of health systems in two provinces of Papua (where there is a growing, generalized HIV/AIDS epidemic) and support to the Country Coordinating Mechanism of the Global Fund for AIDS, Tuberculosis and Malaria. As the nation struggles with decentralization, weak district-level management capacity has challenged USG targets for child nutrition, drinking water disinfection, TB/HIV co-infection case detection and management and TB control. Program Element Performance \ 3 Investing in People \ 3.1 Health \ 3.1.1 HIV/AIDS USG HIV/AIDS assistance to Indonesia does not fall within the Indonesian Operational Plan Framework. This assistance is reported through the Mini-Country Operational Plan (COP) process. The FY08 Mini-COP was uploaded on COPRS and submitted to O/GAC on September 28, 2007. The review process for Indonesia took place on October 23, 2007 and preliminary reviews have been positive although an official response is still pending. FY07’s Annual Report (APR) is due to O/GAC on November 15 and USAID/Indonesia is currently in the process of collecting information from implementing partners. USG HIV/AIDS assistance to Indonesia is integrated with, and supports, the GOI HIV/AIDS national program. The USG works closely with the National AIDS Commission (KPA) and is a key partner in Indonesia’s fight against AIDS. Programming focuses on scaling-up prevention through behavior change and linking prevention to treatment, care and clinical services in eight priority provinces – “hotspots” of the concentrated epidemic within Most-At-Risk Populations (MARPs) throughout the country. Within the two provinces of Tanah Papua, where there is a growing generalized epidemic, assistance is promoting a health system-strengthening approach to build capacity of local governments and NGOs to provide quality health services and strengthen HIV/AIDS and STI surveillance activities. In addition, USG assistance supports the Global Fund activities in Indonesia and is currently a voting member on the Country Coordinating

Page 016

Mechanism (CCM), and an active participant in the HIV/AIDS and TB Technical Working Groups. Program Element Performance \ 3 Investing in People \ 3.1 Health \ 3.1.2 Tuberculosis Targeting the third highest tuberculosis prevalence rate in the world, USG TB assistance to Indonesia achieved notable results in FY07. Technical assistance strengthened public and private sector technical and management capacity at the local level and improved access to quality TB services through Directly Observed Treatment Strategy (DOTS). As a result, the targeted case notification of 70 per 100,000 was met in FY07. The provision of laboratory services produced strong but mixed results. A temporary pause in support from the Global Fund for AIDS, Tuberculosis and Malaria in response to audit findings, adversely affected laboratory quality assurance. Only 47 percent of USG-supported laboratories performing TB microscopy were able to meet the “correct microscopy results” standard. This is far below what was anticipated. In spite of these setbacks, notable successes were achieved. The USG supported the establishment of international Multi-Drug Resistance (MDR) quality control standards and helped one laboratory meet the standards. Two others are close to meeting them. In addition, eighty-nine percent of new smear-positive pulmonary TB cases were treated and cured as a result of increased access to laboratory services through the assistance. The USG supported the development of a National TB/HIV Strategy and Guidelines to improve case finding and management of TB/HIV co-infected patients. However, due to the delayed implementation of TB-HIV collaborative activities, less than 2 percent of all registered TB patients were tested for HIV compared to the targeted 20 percent. The program has strengthened the capacity of 46 senior staff of the National Tuberculosis Program. Governmental decentralization has plagued health programs throughout Indonesia, including TB. Weak management capacity at the district level has negatively affected budget allocation, planning and management of TB activities in many districts. Learning from this, the USG’s focus in the coming year will shift greater attention and technical support to the district level, while continuing to support the national level. Program Element Performance \ 3 Investing in People \ 3.1 Health \ 3.1.6 Maternal and Child Health In FY07, USG assistance in support of GOI policies resulted in increased utilization of quality Maternal and Child Health (MCH) services and improved behaviors among pregnant women and mothers of children under five. Support to central and local government and communities resulted in meeting or exceeding more than 90 percent of MCH targets. The quality and reach of training in maternal/newborn, child health and nutrition relied on effective collaboration with medical professional associations, the National Clinical Training Network, civil society partners and local government health officials. USG-assisted training emphasized evidence-based interventions and capacity building among local government officials in planning, budgeting and implementing MCH health services. Health systems have been strengthened through engaging communities in advocacy skills-building, the development of local health policies and training in monitoring and evaluation. Improving the willingness of people to seek health care services, the quality of health services and disease prevention remained key focus areas. USG assistance increased the coverage of diarrhea treatment from 53 percent to 69 percent and decreased the incidence of diarrhea from 28% to 26%. Through effective partnerships with civil society, more than twice the expected number of people were trained in effective

Page 017

hand washing. Deliveries with a skilled birth attendant rose from 58% to 66%; immediate breastfeeding doubled from 9% to 21%; and coverage of postpartum visits doubled from 33% to 70%. The USG actively supports Indonesia in its recovery from a polio outbreak in 2005 and the results indicate consistently strong vigilance in country-wide surveillance and response. Private midwives working through a USG-assisted accreditation program showed substantially improved adherence to active management of the third stage of labor – 100 % stocked oxytocin – and exceeded targets for ensuring that clients breastfed immediately after birth (77%). Challenges continue to stem from the decentralization of primary care services and introduction of new public health concepts to the Government and communities. Children benefiting from nutrition programs reached only 90 percent of the targeted population, due to a slight decrease in attendance at monthly primary care health posts. Adoption of point–of-use chemical disinfection of drinking water has met resistance due to the culturally entrenched practice of boiling. Program Element Performance \ 3 Investing in People \ 3.1 Health \ 3.1.7 Family Planning and Reproductive Health FY07 was the last year of USG funding for family planning assistance in Indonesia. The USG has played a historically significant and supportive role in supporting GOI efforts to promote the concept of family planning and increase access to quality reproductive health services. In the last year, focus was placed on activities in drug and commodity management capacity-building for district governments. Support to the Indonesian Midwives Association (IBI) to improve and sustain sound business management of their private sector midwife franchise program (Bidan Delima) was also provided. Midwives are the primary family planning service providers in both the public and private sectors, accounting for more than 50 percent of all supply sources. The Bidan Delima program, which began with USG support in 2004, has shown promising signs of success. Nearly 500 additional midwives joined the program in FY07 for a total of approximately 7,000 private midwives in 12 provinces. In addition to support in the management of the Bidan Delima program, the USG program also supported the technical update of IBI quality assurance instruments and trainers. In FY07, assistance resulted in the inclusion of contraceptive commodities in the national standard for district MNCH planning and budgeting. It also supported the use of these tools in 14 districts. Managing health commodities is a relatively new function for sub-national levels of government and building district capacity in this area has proved challenging. One preliminary statistic from a USG-funded rapid survey, indicates modern contraceptive coverage among women with children under three years of age, has declined slightly from 76 to 74 percent. The USG graduation of support for family planning services coincided with the Indonesian decentralization process and the transfer of family planning responsibility from the National Family Planning Board to the Ministry of Health. District Health Office staff, which are now responsible for family planning, have limited capacity and experience to support the development and implementation of family planning and reproductive health programs. Program Element Performance \ 3 Investing in People \ 3.1 Health \ 3.1.8 Water Supply and Sanitation

Page 018

The US President’s Water for the Poor initiative resulted in hundreds of thousands of Indonesians receiving improved water and sanitation over the past year. To increase access to clean water and sanitation for the poor, assistance provided resources to water utilities managed by local governments and community organizations. As a result, 314,000 people were provided an improved water supply through city piped water networks and community-based systems. Assistance to twenty-nine water utilities helped improve operations, water resources management and financial performance, including an increase in their credit rating. Collaborations between water utilities and local banks have been developed to establish micro-credit schemes as an alternative funding mechanism so that the urban poor can get house connections. One water utility is being assisted to access alternative funding from the capital market to expand its service coverage. An additional 313,732 people were provided access to improved drinking water supplies through new community-based systems. Assistance to five local governments was provided to develop strategic citywide sanitation plans. Campaigns were also conducted to ensure households adopt health and hygiene practices, especially through activities involving children and mothers. During FY07, there was increased commitment from local governments to support USG- funded activities and thus leverage more government money for water and sanitation sector development. Innovative approaches developed through USG-funded programs have encouraged local governments and other institutions to provide improved services for the poor. While the results under this element were significant, the challenges remain daunting. Diarrhea is the number two killer of children in Indonesia. According to Ministry of Health data, of every 1,000 babies born, 50 die of diarrhea, often from drinking water polluted by fecal matter. More than 100 million Indonesians do not have access to safe drinking water. Piped water services cover only 40 percent of urban and peri-urban areas and 20 percent of rural areas. The sanitation sector is less developed compared to other urban infrastructure. Host government investment in sanitation infrastructure last year was only Rp 200 per person per year ($0.02), compared to the estimated need of Rp 47,000 per person per year ($5). Element Indicator Narrative \ 3 Investing in People \ 3.1 Health \ 3.1.2 Tuberculosis Average population per microscopic laboratory has decreased from 75,000 to 76,000 (baseline) due to increasing number of lab facilities in all selected areas. This indicates that access to microscopic services has improved. Average population will remain higher in densely populated provinces (Java) and much lower in remote provinces. Specific solutions need to be determined for these remote areas, balancing access against requirements for quality assurance and logistics. (CHECK ON THIS). There was no FY07 rise in CNR due to decreased supervision and surveillance as a result of GFATM restrictions, which hopefully will be lifted in APA3. M/F ratio is 1:4 which is slightly above the target of 1:1-1:3. There is a wide variety between provinces. Percent of all registered TB patients who are tested for HIV through USG-supported programs. Delayed implementation of TB-HIV collaborative activities is the main reason for not achieving the target of 20%.The target for APA3 has been adjusted (to 20%). M/F ratio to be determined after baseline assessment has been done in the 10 selected hospitals. GFATM restrictions had dramatic negative impact on Lab Quality Assurance, and QA activities / crosschecking dropped in most districts. Little progress has been made with implementation of the

Page 019

intermediate laboratory network and establishment of reference laboratories in \'\'new\'\' provinces. Establishment of the lab network will be a priority for APA3. Element Indicator Narrative \ 3 Investing in People \ 3.1 Health \ 3.1.6 Maternal and Child Health Due to supply-chain problems, the liters of drinking water disinfected with USG-supported point-of-use treatment products was well below the anticipated level. Retail outlet penetration from the original distributor was poor. A new owner for the product was named and the distributor replaced. As a result of this transition, there was a slow start up in the third and forth quarters of FY07. Assistance is also encountering barriers with uptake due to the newness of the product and the population’s inexperience with water treatment methods. Due to the revised estimates from the distributor for expected sales and the realization of slower than expected uptake, the FY 2008 target was revised downward. The significant increase in the number of people trained in effective hand washing with soap is due to expansion of target beneficiaries. The original plan only targeted village cadres, but during implementation the hand washing campaign also reached out to posyandu participants (mothers/care givers of children under 5 years, pregnant and lactating women), and members of community - based groups (PD group, village level Family Welfare Movement/PKK, etc.). The FY 2008 is much less than FY 2007 results due to termination of USAID funding and project close out. The number of post partum/newborn visits within 3 days of birth in USG assisted programs was exceeded by almost 50% because of a substantially increased proportion of women reporting postpartum visits (including newborn) within 3 days (from 33% to 70%). Element Indicator Narrative \ 3 Investing in People \ 3.1 Health \ 3.1.7 Family Planning and Reproductive Health Data not yet available from service delivery point. Target date for data submission is November 9, 2007. Element Indicator Narrative \ 3 Investing in People \ 3.1 Health \ 3.1.8 Water Supply and Sanitation Amount of private financing mobilized. Achievements against this indicator is delayed for two reasons. First, given the novelty of the financing mechanism proposed, an intensive and extended effort has been required to build a consensus with the water utility and local government to proceed. Second, the nature of the project itself changed significantly to reflect a more conservative approach. This change included a reduction in the size of the capital expenditure from about $16 million to $6 million. The FY 2008 target has been revised accordingly. The plan to build one big water catchments was put off based on the geological and technical analysis conducted by CRS, a local partner and the local government\'s public works office that recommended against the plan. Based on the recommendation from the Public Works office, the program constructed an alternative: a gravity-fed water pipeline system. The system required relatively low budget but reached more communities, hence provided access to clean spring water to more beneficiaries. Further assessment on the need for renovated and newly-built water facilities resulted in significantly larger number of people gaining access to improved supply. The number includes community members in households that have access to drinking water. It excludes number of people who had access to water

Page 020

supply from schools. Program Area Performance \ 3 Investing in People \ 3.2 Education The significant results of assistance in the education area was highlighted this past year with the Presidents and First Ladies of Indonesia and the United States visiting a classroom showcasing how Indonesian educators are using USG assistance to improve the quality of learning in schools. The US Presidential Initiative for Indonesian Education helps the people of Indonesia improve their education system. The USG is one of the two largest donors in education and is working to help the GOI implement key government policies that help local governments improve the quality of the education services they provide. In FY07, tools and approaches developed by the USG education initiative were used in 50 districts, for budgeting and management, teacher professional development, and skills development for junior secondary-aged youth. These approaches are being adopted by other local governments as well as civic organizations that run networks for private schools, and are becoming models for central government technical offices. Program Element Performance \ 3 Investing in People \ 3.2 Education \ 3.2.1 Basic Education During FY07, specific accomplishments of USG basic education assistance included providing models for school-based management that directly assisted 1,211 parent- teacher associations and 6,676 local school administrators, and were further adopted and funded by dozens of local governments in neighboring districts. Assistance to over 40 district education offices on budgeting and planning provided on-the-job skills training to thousands of administrators and helped these local governments to more effectively target their resources. USG-supported activities for teacher professional development directly assisted 11,300 teachers, were adopted by a network of 15 university partners, and clearly support the central government\'s goal of rapidly upgrading over half of the teaching force in the next few years. The USG also led analysis of education expenditure at 26 districts, which enabled the GOI to improve its reporting on education expenditure to the Millennium Challenge Corporation and gain threshold status in early FY07. Program Element Performance \ 3 Investing in People \ 3.2 Education \ 3.2.2 Higher Education Higher education results in FY07 were mixed. Due to delays in the release of a RFP for English immersion scholarships, no grantees left on scholarships in FY07. Resources have since been obligated. The implementing mechanism is, however, on target for 190 scholarship grantees to be trained in FY08 and the same number in FY09, if funding remains stable. Two English Language Training and Resource Centers were opened and are being used. A third will be open in FY08. More than 5,000 English language teachers have been trained; materials, in English, on a wide swath of subjects, have been placed in universities. One notable success was in the area of textbook/curriculum development. The USG Mission to Indonesia obtained and duplicated a teaching VCD -- “Colors of Democracy” – which was used in 500 teacher training centers and subsequently distributed to 4,300 high schools through the Ministry of Education. “Colors of Democracy” consisted of 25 episodes, covering such topics as empowering local communities, public services and education. Through the Ministry\'s training centers, teachers were guided in the best use of the VCD for the classroom, resulting in approximately 5,000 teachers trained and 200,000 students taught.

Page 021

Feedback indicates that, 90% of the audience, both students and teachers, were inspired to participate in a democracy, to be more tolerant, as well as to improve productivity and other values imparted by this VCD. Element Indicator Narrative \ 3 Investing in People \ 3.2 Education \ 3.2.1 Basic Education FY07 basic education performance data demonstrates that results exceeded targeted values for a number of USG programs. The number of distributed textbooks and teaching materials surpassed targets. Result were below targeted values for the number of administrators and officials trained; the number of learners enrolled in USG-supported primary schools and the number of learners enrolled in USG-supported secondary schools and other values. The mission considers the number of learners enrolled in USG-supported primary schools or equivalent non-school-based settings essentially on target. There were slightly fewer schools selected in FY 2007. FY08 projected values are target-reduced as FY07 data indicates there are slightly fewer schools per district on average than was anticipated. The number of learners enrolled in USG-supported secondary schools or equivalent non-school-based settings is below projections as it was anticipated that a mechanism would include Cohort 2 (Phase-2 expanded assistance) in FY07. This assistance has not yet benefited students. FY08 figures are adjusted accordingly. The number of teachers trained is below projections as it was anticipated that a mechanism would be including Cohort 2 expanded assistance in FY07. In addition, school selection in FY07 included more madrasah and rural schools. These schools tend to be smaller with fewer numbers of teachers/educators. Out-year values are adjusted accordingly. Element Indicator Narrative \ 3 Investing in People \ 3.2 Education \ 3.2.2 Higher Education Data collected for USG measurements tracking FY07 performance indicates that results were equal to targeted values for the number of USG-supported organizations that strengthen the institutional capacity of host-country higher education institutions. Results were below projected FY07 values for the number of higher education partnerships between US and host country higher education institutions that address regional, national, and/or local development needs; and the number of USG-funded scholarship and exchange programs conducted through higher education institutions. Education partnerships were not reached due to delays in ESF disbursements. Ten English teaching assistants funded from FY07 funds only arrived in country in August 2007 and, consequently, the partnerships are not yet reflected. The main variation for the number of host-country individuals trained is the delay of an English-language TV quiz series, as grants for this program were not awarded until September 2007. The quiz series for high school students is on target to be televised in FY08. Statistics for the national network that will broadcast the program projects a two million person audience. The USG scholarship and exchange mechanism was delayed and the grant was not awarded until FY07. As a result, no students departed on scholarships in FY07. The first group of 20 Indonesian undergraduates departed on October 20, 2007. Projections for FY08 are slightly down due to slightly higher administrative costs. Program Area Performance \ 4 Economic Growth \ 4.2 Trade and Investment

Page 022

While Indonesia has continued its successful transition to a democratic and decentralized state, trade policy remains the responsibility of the Ministry of Trade (MOT). Indonesia follows a triple-track strategy of international trade negotiations: multilateral, under WTO auspices; regional, ASEAN+ agreements and bilateral agreements. Its first bilateral agreement – with Japan – has been completed. To further the country’s objectives, a National Trade Negotiation Team has been established, with responsibility for an overall negotiating strategy. The government has completed a review of trade rules and regulations with the objective of civil service reform. To speed up implementation of the proposed reforms, an Investment Climate Improvement Package, containing 85 regulatory and institutional reforms, has been adopted. The package focuses on five areas: investment policies; customs, excise and duties policies, taxation; labor, and small and medium enterprises. It specifically calls for revisions to the investment, labor, tax and customs laws. The new investment law was approved by the legislature in March 2007. Indonesia’s trade performance has continued to improve and expand during 2007. Exports during the first three months of 2007 reached $25.9 billion – an increase of 15.2 percent on a year-on-year basis – while imports grew by a similar percentage. While the US remains one of the main destinations for Indonesia’s non-oil and gas exports, trade with other Asian countries and Australia is growing at a much faster rate. The main challenge the country faces, is to increase economic growth to a level that can create sufficient jobs to constrain rising unemployment and reduce poverty. Improving trade performance is seen as a key to achieving the needed economic growth. With almost no entry-level staff recruitment having been conducted since the financial crisis in 1997, the MOT faces a situation where more than 60% of its personnel are due to retire within the next five years. To address this issue, the Indonesia Trade Assistance Project is focused on providing capacity-building in several key areas including policy and economic analysis, legal support, developing a better understanding of the WTO, and the practices and principles of international trade and negotiations; improving access to and utilization of information that is needed for developing and implementing trade policy; and improving internal organization systems. Program Element Performance \ 4 Economic Growth \ 4.2 Trade and Investment \ 4.2.2 Trade and Investment Capacity The Indonesia Trade Assistance Project (ITAP) is helping to build trade capacity in a variety of ways both within the Ministry of Trade (MOT) and in other ministries and universities. ITAP is providing formal classroom training, mentoring and coaching, advisory support, study trips and nearly $3 million for a new data center and upgraded communications and networking equipment in the Ministry of Trade. The primary focus areas include: economic and policy analysis; economic research; trade negotiations; trade defense; trade remedies; legal drafting; legal support for international trade issues; organizational development; training delivery; communications and public outreach; and information technology (IT). In FY 2007, more than 1600 participants from the MOT, other GOI agencies, private sector businesses and local universities attended ITAP training programs. This exceeded the target in 2007 by approximately by 250%. ITAP had underestimated the amount of interest in the programs due to the highly focused technical subjects. However, because attendance at the training programs was encouraged by senior MOT officials and due to the interest generated by prominent speakers, more participants attended than planned. As a result, appropriate adjustments will be made to the targets in FY08. Twenty-two MOT employees completed their studies for Masters’ Degrees in International Trade Policy at the University of Indonesia. ITAP provided support to the MOT and Ministry of Fisheries and Maritime Affairs in preparing Indonesia’s

Page 023

first-ever legal text proposal to the WTO at the ongoing Fishery Subsidy Negotiations. ITAP provided classroom training, mentoring and coaching to the MOT to start an administrative reform process within the MOT, by creating position descriptions for all of its staff. This process, a ground-breaking initiative by the State Ministry for Administrative Reform, is attempting to modernize the bureaucracy in all government ministries, using the MOT as one of the first agencies for its implementation. Element Indicator Narrative \ 4 Economic Growth \ 4.2 Trade and Investment \ 4.2.2 Trade and Investment Capacity Data collected for U.S.G. measurements tracking FY07 performance indicates that results exceeded targeted values for: the number of Capacity-Building Service Providers receiving USG assistance; the number of participants in USG supported trade and investment capacity building trainings and; the Number of USG supported training events on topics related to investment capacity building and improving trade. No other measurements are currently used to track progress of this element. In FY07, the U.S.G. supported two trainings to increase trade capacity in addition to those already planned. The number of people attending trainings were often more than double what was anticipated. As a result, the actual value for the Number of participants in USG supported trade and investment capacity building trainings was 250% (1,157 Indonesians) higher than anticipated. In some cases, numbers were underestimated because of the narrow subject matter. However, some of these were regarded as important issues or had prominent authorities in attendance. FY08 projected values are adjusted upward accordingly. The other two measurement, while higher, fell within normal range of projections. Program Area Performance \ 4 Economic Growth \ 4.3 Financial Sector The Financial Sector is one of the most critical areas undergoing reform over the past year in order to promote Indonesian broad-based economic growth. With USG assistance, the Ministry of Finance (MOF) improved the financial sector enabling environment, by implementing policies, establishing enforcement and monitoring bodies and strengthening the capacity of key MOF offices. MOF Tax and Customs office procedures were also strengthened. A new Directorate for Intelligence and Investigation was established. MOF internal compliance and internal investigation sub-directorates were created. In addition, MOF is now conducting civil service reform aimed at replacing an inefficient seniority-based performance system with a new merit-based performance system. These reforms are already producing results. Public sector debt restructuring has accelerated. New fiscal and tax policies to increase revenue and reduce debt are now in place. Program Element Performance \ 4 Economic Growth \ 4.3 Financial Sector \ 4.3.1 Financial Sector Enabling Environment As one of the leading ministries implementing major reforms to improve the financial sector enabling environment, USG assistance was primarily used to support the MOF efforts. Resulting from work in the MOF Tax and Custom Offices, new procedures are now in place that will increase tax revenues and streamline customs procedures. During the year, the Asset Management Company (PPA)’s capacity to implement MOF policy was strengthened. At the same time, the MOF capabilities to manage risk improved. As a result, major debt restructuring (including the two largest airlines in the country) was successfully

Page 024

conducted during the year. Issues of corruption and compliance continue to be one of the major roadblocks to increasing broad based economic growth in Indonesia. In FY07, USG technical assistance to the MOF achieved major inroads to these obstacles. With the establishment of the compliance and internal investigation sub-directorates, a number of early audits and investigations have already been conducted. This includes investigations on money laundering which have resulted in changes to MOF Tax databases and systems, and serious disciplinary action against several MOF Tax Office employees. With USG support, the MOF Tax office established a new Directorate for Intelligence and Investigation. This is the first government department devoted entirely to the identification and investigation of major criminal tax offenders. Efficient and effective inter-agency coordination will be the challenge for this new directorate to be fully successful. If this challenge can be properly addressed, the country will benefit from increased tax compliance and revenues. Program Area Performance \ 4 Economic Growth \ 4.5 Agriculture In FY 2007, USG assistance to Indonesia in the agricultural sector was characterized by the implementation and rapid expansion of a large, three-year agricultural project. To strengthen the institutional capacity necessary for increasing agricultural sector productivity and competitiveness, the project will improve the skills of nine local agro-businesses as well as the quality of their products. While still in the early stages of implementation, Indonesians across the country – including remote areas of Papua and Aceh – are already seeing the benefits of US assistance through this project. Two private-sector partnerships were established to leverage resources and increase results. The partnership with PT Freeport Indonesia has already resulted in leveraging $1.8 million in private sector resources for use in remote areas of Papua. Another public-private partnership with Olam and Blommer Chocolate has resulted in a 69% increase in the volume of cocoa sold by smallholder cocoa farmers in Sulawesi, with an increase of $1.18 million in the value of purchases, as a direct result of USG assistance. Strong support from the Ministry of Agriculture played an important role in the rapid implementation of this mechanism. Program Element Performance \ 4 Economic Growth \ 4.5 Agriculture \ 4.5.2 Agricultural Sector Productivity As the project was initiated in FY07, quantifiable data to support increased agricultural sector productivity is limited. During this period success was characterized by timely and effective implementation of the components necessary to achieve results in coming years. The joint resources of USAID, USDA, and FDA are working with the Director General of Quarantine to resolve issues causing the automatic detention of Indonesian cocoa for export. With ten sectors targeted, Indonesian’s throughout the archipelago are already receiving assistance in the coffee, cocoa, horticulture, aquaculture and biofuels (jatropha), spices and natural rubber sectors via more than 130 producer organizations. In FY 08, implementation in the livestock, seaweed and floriculture sectors will begin. In FY07 alone, almost (3,157) cocoa farmers were trained in productivity and post harvest handling. This will expand to 20,000 in the coming years. Element Indicator Narrative \ 4 Economic Growth \ 4.5 Agriculture \ 4.5.2 Agricultural Sector Productivity In FY07, a new implementing mechanism is currently being implemented across Indonesia to improve

Page 025

agricultural production to increase competitiveness. As the mechanism was just being awarded, no FY07 projections were provided in the previous Operational Plan submission. However, accelerated implementation of activities provided earlier than expected results for: the number of additional hectares under improved technologies or management practices as a result of USG assistance; the number of additional surveillance and/or control systems in place for agricultural threats (biological and environmental) as a result of USG assistance; the number of individuals who have received USG supported short term agricultural sector productivity training; the number of producers organizations, water users associations, trade and business associations, and community-based organizations (CBOs) receiving USG assistance; the percent change in value of international exports of targeted agricultural commodities as a result of USG assistance; and the percent change in value of purchases from smallholders of targeted commodities. FY08 projections are also provided. Program Area Performance \ 4 Economic Growth \ 4.6 Private Sector Competitiveness Indonesia has been recovering from its financial crisis of the late 1990s but its economy lags behind where it should be. With only 5.4% GDP growth in 2006, the country will not absorb the annual influx of over two million job-seekers, nor will it increase income for those already employed. Indonesia’s current business climate is poor. Weak commercial law, regulation and fiscal structures lead to inefficiency, lack of transparency, and stifle business growth. The goal is to increase the competitiveness of selected high-potential industries, improve the business climate through support to the legal framework, and to institutions, to effectively resolve commercial disputes and promote public-private partnerships. Planned results include improving the management quality of 250 firms and revision to two core commercial rules or regulations. In FY07, USG assistance at the national, provincial and local levels resulted in increases in private sector productivity and improvements in the business enabling environment. In order to improve business regulations, the USG provided direct assistance to 17 local governments in five provinces. The benefits of continued GOI commitment and international support to improve private sector competitiveness in Indonesia were evident over the past year. Indonesian GDP grew at 6%. In recent articles, the international media is speculating whether or not Indonesia is poised for an economic “take off.” By working at the national, provincial, and local levels to improve the business environment, the USG assistance program is helping to create more dynamic business environments for companies across Indonesia. The USG has assisted 17 local governments in five provinces to improve their business regulations. The USG is also involved in facilitating public consultation related to a draft regulation to improve investment licenses in Indonesia. At the firm-level, management capacity of more than 567 firms is being upgraded in five labor-intensive high potential industries: footwear, automotive parts, furniture, garments and home accessories. Upgrading included improving export readiness, compliance with technical and social specifications of the buyers, ability to source raw materials, package design, logistics, marketing and participation in trade fairs. In FY 07 it was expected that two core commercial rules or regulations would be improved, to facilitate the possible expansion of commercial court jurisdiction. Results, howeve Program Element Performance \ 4 Economic Growth \ 4.6 Private Sector Competitiveness \ 4.6.1

Page 026

Business Enabling Environment The Indonesia Anticorruption and Commercial Court Enhancement Project (In-ACCE) was created to assist the GOI in implementing the reforms set forth in the 2004 Supreme Court Blueprints and Action Plans for the Commercial Court and Anticorruption Court. While the goal of improving court performance remains the same, the project’s strategy for achieving this goal will be changed in light of lessons learned and realities observed during the first year of project implementation. Initially, the focus of the project was on providing assistance to the Anticorruption and Commercial Courts. However, based on the project’s review of these courts, it was determined that neither is a stand-alone court, but instead are small, specialized dockets within five District Courts. As a result, it is difficult to improve performance related to commercial or anticorruption cases without addressing the systems of these five District Courts as a whole. The project will continue to work to improve the performance of the Anticorruption and Commercial Courts using approaches and systems that can be adopted by these other courts. With this in mind, in FY 07, assistance provided to judges and court staff was not limited to those of commercial and anti-corruption courts, but to five district courts judges and staff where the specialized courts reside. Judges and court staff received training on human resources, court budgeting and strategic planning, caseflow management and information technology. Also in FY 07, key information technology equipment was installed, including computers, servers, network cabling and wireless networks in the Jakarta Anticorruption and Commercial Courts. The draft anti-corruption law was accepted for use in discussions by the official GOI committee tasked with drafting the new law. As a result of the change in the project, none of the five District Courts received assistance on case management in FY 07, and therefore the target was not reached. In FY 08, the project will complete the installation of such a system in one District Court. Also, with the inclusion of five District Courts, the project began its examination of existing manual case management system to determine the appropriate targets. However, based on the poor reporting system and the inability to verify the data, targets will not be identified until installation of the project’s first computerized case management system in FY 08. Program Element Performance \ 4 Economic Growth \ 4.6 Private Sector Competitiveness \ 4.6.2 Private Sector Productivity The USG has provided technical assistance for the establishment of 17 new One Stop Shops (OSS) in 17 districts across Indonesia to streamline the business licensing and registration processes and to improve business and investment regulations. The OSS centers have reduced the number of days needed to obtain a license by 40 percent and reduced the cost to obtain a license by an average of 30 percent. This has helped increase the registration of small businesses, reduce corruption and drive civil service reform. As a result of these successes, a recent Ministry of Home Affairs decree mandated the creation of One Stop Shops in all 400+ districts in Indonesia. The USG provided support for 11 Regulatory Impact Assessment programs (RIAs) to local governments in Indonesia. The program is strengthening the analytical capacity of local regulators while also involving business and community groups in a more transparent policy-making process.

Page 027

To increase private sector productivity, assistance is being provided to five labor-intensive, high-potential industries; such as footwear, automotive parts, furniture, garments and home accessories. Technical assistance is now focused on improving the productivity and efficiency of these industries with the goal of stimulating employment and economic growth. Through technical assistance and training at the corporate level, the management capacity of over 567 firms was upgraded. Upgrades included improving export readiness, compliance with technical and social specifications of prospective buyers, ability to source raw materials, design packaging, logistics, marketing and participation in trade fairs. A number of public-private sector workshops have been conducted in seven provinces through USG assistance. Several public-private partnerships were established and have begun to function. For example, two initiatives with Microsoft have started -- an internet trade portal for footwear and a large-scale, nationwide business innovation competition. Partnerships are being developed in the garment sector with companies such as the GAP, Levi\'s and Tommy Hilfiger and, in the home accessories sector, with institutions such as London University to establish a world class design center offering an accredited Master of Arts degree in Sustainable Design. Element Indicator Narrative \ 4 Economic Growth \ 4.6 Private Sector Competitiveness \ 4.6.1 Business Enabling Environment Data collected for U.S.G. measurements tracking FY07 performance indicates that results did not meet project values. The target (1) was a law for the Anti-corruption Court. While not in place, a draft was accepted by the official GOI committee tasked with drafting the new law. In FY08 assistance will be assessing potential amendments to Indonesia’s commercial laws and regulations, including its bankruptcy and intellectual property laws. Element Indicator Narrative \ 4 Economic Growth \ 4.6 Private Sector Competitiveness \ 4.6.2 Private Sector Productivity In order to improve the regulatory environment and drive business growth, PROMIS has begun implementing its Regulatory Impact Assessment (RIA) program with local governments across Indonesia, as well as at the national level with the Ministry of Trade. The program aims to strengthen the analytical capacity of local regulators, while also involving business and community groups in a more transparent policy- making process. Through a better understanding of regulatory impact, governments and their constituents will be able to create a business climate that is energized by good governance and economic growth. Although the RIA program is relatively new, local governments have been very receptive. Last year also saw the initiation of new RIA programs with provinces, as well as the permanent integration of RIA principles in local legislative processes. The Reducing Barriers to Market Entry (PROMIS) Project is currently being developed and implemented in districts and provinces across Indonesia. Local government interest in the OSS technical assistance has been very strong. As part of a national level program to complement OSS establishment at the district/city level, the project assisted the Ministry of Home Affairs with the drafting of a decree mandating the creation of One Stop Shops throughout Indonesia and providing national guidelines for OSS licensing centers. The project also continues its national level assistance by facilitating public consultations for the drafting of a Presidential Decree on OSS. During the year, Management capacity of over 567 firms were upgraded and at least 20% of these firms are engaging in various technical and management activities to help ensure sustainable production growth based

Page 028

on improved understanding of end-market demands Program Area Performance \ 4 Economic Growth \ 4.8 Environment Indonesia has globally significant terrestrial and marine resources that – if harnessed – possess enormous potential for job creation and the provision of vital environmental services. But sustainable development of Indonesia’s resources is often thwarted by illegal exploitation that benefits the wealthy, rather than the poor. Forests are being lost at the rate of about two million hectares a year, including in watersheds that supply millions with domestic and industrial water. Interventions are designed to bring effective long-term management to important forests and watersheds. An equally important area is improved solid waste systems. Global climate change has attracted renewed interest in Indonesia, and USG engagement is increasing. Survival of the endangered orangutan and conserving its biologically diverse habitat is also a priority for the USG FY07 results in the environment area exceeded targets. With the Orangutan Conservation Services Program mobilized and beginning to show impact, the number of biologically significant hectares brought under improved management greatly exceeded targets. The program focused particularly on the protection of endangered animal populations, carbon-rich peat forests and biodiverse tropical rain forests on Sumatra and Borneo islands. As that activity matures, even greater impacts are expected and targets have been increased accordingly. Rehabilitation of degraded forests and lands also exceeded targets. Training in natural resource management and biodiversity conservation significantly exceeded targets due to strong interest among partners and target communities. In the area of clean, productive technologies, the number of community-based solid waste management systems developed with USG assistance greatly exceeded the target, although the aggregate number people served by those systems was less than expected. Aggregate FY08 targets for solid waste, sanitation and safe drinking water systems have been reduced due to close-out of five DAPs during the year. Program Element Performance \ 4 Economic Growth \ 4.8 Environment \ 4.8.1 Natural Resources and Biodiversity USG assistance has resulted in improved tropical forest management and biodiversity conservation in a country where mega-biodiversity ranks top in global importance and whose economy depends heavily on natural resources and ecosystem services. In FY07, USG programs resulted in improved forest management of 307,262 hectares of biologically significant areas, including priority orangutan habitat and peat forests, protected areas and key watersheds across 8 provinces. An additional 77,354 hectares of degraded land was rehabilitated to restore ecosystem services. Programs assisted the Government to implement 26 relevant policies and assisted communities to improve land management practices, address tenure barriers and improve livelihoods. Training of 8,282 people – 2,048 women – built human resource capacity in land use and development planning, natural resource management, land stewardship, rehabilitation of degraded lands, improved conditions for land tenure and financing options to reward communities for sound resource and biodiversity management. These activities contributed significantly to addressing threats of deforestation in project areas, leading to improved forest and watershed management and protection of endangered orangutans and their tropical forest habitat. These activities also contributed significantly toward protecting water resources in project areas, especially in terms of stabilizing the flow of water and reducing sedimentation run-off. In addition, a total of 1,821

Page 029

people have increased economic benefits from improved resource management, which produced agro-forestry products and improved crop yields. The FY07 actual results for improved resource management in biologically significant areas exceeded the targeted number of hectares, thanks to the high level of support from community groups, local government and park authorities for decentralized, collaborative management of protected areas and high-value conservation areas. The results for improved natural resource management exceeded the target due to strong support from communities, national and local government agencies and the private sector through rehabilitation of critical areas. Partner support for clear land tenure security, access to forest resources and value placed on ecological functions are key to conserving forest cover and promoting effective rehabilitation of degraded forest. Program Element Performance \ 4 Economic Growth \ 4.8 Environment \ 4.8.2 Clean Productive Environment Household solid waste contains significant organic and non-organic contaminants and pathogenic bacteria, requiring processing before disposal. But in much of Indonesia, solid waste infrastructure is unavailable. Waterways are thus a common place for disposal of household solid waste. The consequences of living with no or inadequate solid waste management systems are degraded waterways and environmental deterioration, with consequent negative impacts on economic productivity and human health, particularly in poor and underserved communities. In FY07, USG-funded programs reached out to communities and schools in both upstream and dense urban areas, cities and districts to improve solid waste management. A total of 2,973 community-based solid waste management systems were established in FY07, benefiting about 104,000 people. The establishment of solid waste disposal systems took place in concert with interventions promoting separation of household waste, composting of organic waste and recycling of non-organic waste. FY07 actual results exceeded targets due to the integrated approach of solid waste management within a package of health and hygiene campaigns, which encouraged community participation and leveraging of local resources. Communities, local government leaders and non-governmental organizations take part in the assessment of current conditions and the development of participatory action plans. They then build solid waste management systems and initiate strategies for behavior-change in the areas of health and hygiene. Element Indicator Narrative \ 4 Economic Growth \ 4.8 Environment \ 4.8.1 Natural Resources and Biodiversity The FY07 result were significantly higher for the number of hectares in areas of biological significance under improved management as a result of USG assistance. This was due to the high level of support from community groups, local governments and park authorities for decentralized, collaborative management of ten protected areas and forest areas of high conservation value across six provinces in Java and northern Sumatra. Additional project sites will become operational in FY08. The FY07 result were significantly higher for the number of hectares under improved natural resource management as a result of USG assistance. This was due to the high level of support from community groups, national and local government agencies and the private sector committed to improved natural resources management through critical land rehabilitation of upper watershed areas in Java and northern Sumatra.

Page 030

The number of policies, laws, agreements or regulations promoting sustainable natural resource management and conservation that are implemented as a result of USG assistance exceeded FY07 projections as a result of the effectiveness of community-based activities and increasing support from U.S.G. partners. For example: Field School activities increased awareness of sustainable natural resources management and conservation. Stakeholders have agreed to produce regulations to support their activities. The FY 2008 target has been increased accordingly. All FY08 projected values may need revision as future project sites are finalized.

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - 2 1 -

75 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

93 1 3 2 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

8,329 225 1,201 225 750 - - 280 - 100 - - 921 - 650

1.3 Stabilization Operations and Security Sector Reform\1.3.7 Law Enforcement Restructuring, Reform and Operations

Number of law enforcement officers trained with USG assistance

Number of women Number of men

On target. Projections on track for control systems to be in place in FY08.

1.3 Stabilization Operations and Security Sector Reform\1.3.7 Law Enforcement Restructuring, Reform and Operations

Number of law enforcement facilities built, refurbished, equipped with USG assistance

1 Peace & Security - Indonesia

1.2 Combating Weapons of Mass Destruction (WMD)\1.2.1 Counter WMD Proliferation and Combat WMD Terrorism

Country has developed and instituted valid export control systems meeting international standards as

1.2.1 Counter WMD Proliferation and Combat WMD Terrorism narrative (no more than 1500 characters)

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

6 2 4 2 -

1292 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

7,875 1,000 1,365 1,500 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1,375 1,000 1,785 1,000 -

820 chars

Kilos of precursor chemicals seized by host government in USG-assisted areas

1.4.3 Interdiction narrative (no more than 1500 characters)

Data collected for U.S.G. measurements tracking FY07 performance indicates that results exceeded targeted values for the number of law enforcement officers trained with USG assistance to develop counter narcotics operational capacity. No other measurements are currently used to track progress of this element. One implementing mechanism is contributing to these values.

During the year, DEA efforts with inter-agency assistance from JIATF West increased the effectiveness and operational capacity of the GOI National Narcotics Bureau and the Indonesian National Police. As a result of increased inter-agency cooperation and additional opportunities, the number of law enforcement officers trained with USG assistance to develop counter narcotics operational capacity exceeded projections by 156% or 140 Indonesians.

1.4 Counter-Narcotics\1.4.3 Interdiction

Kilos of illicit narcotics seized by host government in USG-assisted areas

1.4 Counter-Narcotics\1.4.3 Interdiction

1.3 Stabilization Operations and Security Sector Reform\1.3.7 Law Enforcement Restructuring, Reform and Operations

Number of programs conducted to enhance police management with USG assistance

1.3.7 Law Enforcement Restructuring, Reform and Operations narrative (no more than 1500 characters)

Data collected for U.S.G. measurements tracking FY07 performance indicates that results exceeded targeted values for: Number of law enforcement facilities built, refurbished, equipped with USG assistance; Number of law enforcement officers trained with USG assistance and; Number of programs conducted to enhance police management with USG assistance. No other measurements are currently used to track progress of this element. One implementing mechanism is contributing to these values.

While the Office of the Indonesian National Police' Forensic Laboratory in Surabaya was targeted and successfully completed, targets of opportunity allowed the mechanism to refurbish the ICITAP office in Mabes Polri (Police HQ) as part of the Curriculum Framework Development Project, as well as an office in the Ministry of Industry to support Optical Disc Regulation enforcement. As a result, the number of law enforcement facilities built, refurbished, equipped with USG assistance was three (3) which is two higher than the FY07 projected value.

During the year efforts were refocused to increase the capacity of law enforcement officers in Anti-Corruption and Management Systems To meet these needs USG assistance doubled (to 4) the numbe

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1 1 1 1 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

839 450 1,038 200 126 - - 198 - - - - 840 - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - 1 - 1

1465 chars

1.5.1 Financial Crimes and Money Laundering narrative (no more than 1500 characters)

Data collected for U.S.G. measurements tracking FY07 performance indicate that results exceeded targeted values for the number of people in host country trained on money laundering or financial crimes. The actual FY07 result was equal to the targeted value of Financial Intelligence Unit supported in country with USG assistance (yes/no). In last year’s operation plan submission, no projected value was provided for the number of specific improvements in regulatory structure supported with USG assistance. However, and actual FY07 result is provided in this report No other measurements are currently used to track progress of this element. One implementing mechanism is contributing to these values.

In FY07 an academic paper was prepared as background analysis for the draft Asset Forfeiture (Recovery) Law. This draft law was recently determined to be one of the legislative priorities by the Parliament. Assistance on asset tracing policy and procedures are progressing and are due for completion at the beginning of FY 08.

Due to increased capacity and oversight of host government financial crime prevention agencies the number of Suspicious Transaction Reports (STRs) filed in FY07 increased substantially In FY07 thereal banks complying with money laundering reporting obligations as required by law. As of September 2007, there were a total of 11,347 STRs filed

Number of women Number of men

1.5 Transnational Crime\1.5.1 Financial Crimes and Money Laundering

Number of specific improvements in regulatory structure supported with USG assistance

1.5 Transnational Crime\1.5.1 Financial Crimes and Money Laundering

Financial Intelligence Unit supported in country with USG assistance

1.5 Transnational Crime\1.5.1 Financial Crimes and Money Laundering

Number of people in host country trained on money laundering or financial crimes

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 100 3,784 2,060 1,200 - - 2,169 - - - - 1,615 - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 11 151 42 10

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 2 - 6 18

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 300 16 1,000 - - - - - - - - - - -

Number of TIP victims assisted by USG programs

Number of women Number of men

Number of public awareness campaigns about TIPs completed

1.5 Transnational Crime\1.5.3 Trafficking-in-Persons and Migrant Smuggling

Number of shelters/safe houses established for TIP victims that are supported with USG assistance

1.5 Transnational Crime\1.5.3 Trafficking-in-Persons and Migrant Smuggling

Number of people in host country trained on TIP related issues with USG assistance

Number of women Number of men

1.5 Transnational Crime\1.5.3 Trafficking-in-Persons and Migrant Smuggling

1.5 Transnational Crime\1.5.3 Trafficking-in-Persons and Migrant Smuggling

2060 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 50 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 400 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 500 -

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of people attending USG-assisted facilitated events that are geared toward

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of people from ‘at-risk’ groups reached through USG-supported conflict mitigation

Data collected for U.S.G. measurements tracking FY07 performance indicate that results exceeded targeted values for: the number of people in host country trained on TIP related issues with USG assistance and; the number of public awareness campaigns about TIPs completed. The actual FY07 results were below the targeted value for: the number of shelters/safe houses established for TIP victims that are supported with USG assistance and the number of TIP victims assisted by USG programs No other measurements are currently used to track progress of this element. One implementing mechanism is currently contributing to these values and three historically.

Confusion in the Operational Plan process resulted in FY07 projected values based on FY07 (NOA) resources only. Consequently, actual results appear significantly higher for the number of people in host country trained on TIP related issues with USG assistance and the number of public awareness campaigns about TIPs completed.

Because of a shift in assistance priorities FY07 results only reached 5% (16 TIP victims) of the FY07 targeted value Responding to targets of opportunity USAID refocused its assistance to takeces shifted to advocacy for the law and technical assistance to the Ministry of Women's Empowerment and the Parliament. As a result, this landmark anti-trafficking law was passed by Parliament. FY08 targets have been adjusted down, as resources will be directed to assisting GOI on implementation of the law.

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of non-governmental constituencies built or strengthened with USG assistance

1.5.3 Trafficking-in-Persons and Migrant Smuggling narrative (no more than 1500 characters)

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 300,000 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100 - - - - 50 - - - - 50 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 20 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 15 -

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of USG-assisted public information campaigns to support peaceful resolution of

Number of women Number of men

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of USG-assisted facilitated events geared toward strengthening understanding and mitigating

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of people reached through USG-assisted public information campaigns to support peaceful

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of people trained in conflict mitigation/resolution skills with USG assistance

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100 -

70 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 1 -

Number of peace-building structures established or strengthened with USG assistance that engage

Number of community-based reconciliation projects completed with USG assistance

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

Number of media stories disseminated with USG support to facilitate the advancement of

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

1.6.1 Conflict Mitigation narrative (no more than 1500 characters)Activity just awarded. No adjustments to FY08 projected measurements.

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

1.6 Conflict Mitigation and Reconciliation\1.6.1 Conflict Mitigation

Number of USG-supported activities that demonstrate the postive impact of a peace process

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 30 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 50,000 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 50,000 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 20,000 -

Number of people reached through completed USG supported community-based reconciliation projects

Number of people attending public fora/educational events supported by USG assistance to teach

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

Number of people participating in USG-assisted reconciliation activities conducted and completed

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

Number of people attending facilitated events that are geared toward strengthening understanding

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 30 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 15 -

71 chars Activity just awarded. No adjustments to FY08 projected measurements.

Number of USG-assisted reconciliation activities conducted and completed with the participation of

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

Number of USG-supported facilitated events geared toward strengthening understanding among

1.6.2 Peace and Reconciliation Processes narrative (no more than 1500 characters)

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

Number of public fora/educational events to teach public about peace process supported by USG

1.6 Conflict Mitigation and Reconciliation\1.6.2 Peace and Reconciliation Processes

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

194 202 620 219 509 6 22 - 24 - 22 90 - 85 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1 4 1 6 2

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

80 85 na 90 na

1543 chars

2.1.3 Justice System narrative (no more than 1500 characters)

The number of justice sector personnel that received U.S.G. training exceeded the projected target by 207% or 418 individuals. Results from all three mechanisms contributed to the increase. Accelerated implementation of assistance, double counting and miscalculated targeting contributed to the increase. Projections for FY08 are increased for two mechanism and decreased for one. The result is an aggregate revision upward. Gender grouping values are now collected for all three mechanisms.

Based on an activity-related assessment of the Anticorruption and Commercial Courts, it was determined they are specialized dockets within five District Courts and not stand-alone courts as previously classified. Consequently, the targeted pool of courts is reduced to five. The other mechanism contributing to this measurement will discontinue in FY08.

No supportable data is available for the ratio of new case filings to case dispositions in courts assisted by U.S.G. in the area of case management. Examination of existing Manual Systems within five Model Courts indicated that statistics were neither correctly reported nor capable of verification It will not be possible to determine the necessary values until installation of the project's first computerized cystem will be operational in the first Model District Court by end of FY08. Therefore, verifiable statistics of existing cases, new case filings and case disposition rates will not be available until the beginning of FY 09

2.1 Rule of Law and Human Rights\2.1.3 Justice System

Number of USG-assisted Courts with Improved Case Management

2.1 Rule of Law and Human Rights\2.1.3 Justice System

Ratio of New Case Filings to Case Dispositions in Courts Assisted by USG in the Area of Case

2 Governing Justly & Democratically - Indonesia

2.1 Rule of Law and Human Rights\2.1.3 Justice System

Number of Justice Sector Personnel that Received USG Training

Number of women Number of men

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

16,270 8,000 29,070 5,000 12,000 3,756 2,000 7,494 1,250 3,000 12,514 6,000 21,585 3,750 9,000

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

3 3 5 3 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

198 100 150 100 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

60 60 60 45 -

Number of Sub-national Government Entities receiving USG assistance to Improve their

Number of Laws or Amendments Promoting Decentralization Drafted with USG Assistance

2.2 Good Governance\2.2.3 Local Government and Decentralization

Number of Local Mechanisms Supported with USG Assistance for Citizens to Engage their Sub-

2.2 Good Governance\2.2.3 Local Government and Decentralization

Number of Individuals Who Received USG-Assisted Training, including management skills and Fiscal Management, to Strengthen Local Government and/or Decentralization.

Number of women Number of men

2.2 Good Governance\2.2.3 Local Government and Decentralization

2.2 Good Governance\2.2.3 Local Government and Decentralization

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

60 65 na 45 na

1546 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - - - - - - - - - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 9 - - - - 3 - - - - 6 -

Number of women Number of men

Number of women Number of men

2.3 Political Competition and Consensus-Building\2.3.2 Elections and Political Processes

Number of Election Officials Trained with USG Assistance

Data collected for U.S.G. measurements tracking FY07 performance indicate that results exceeded targeted values for: Number of Individuals Who Received USG-Assisted Training, including management skills and Fiscal Management, to Strengthen Local Government and/or Decentralization; Number of Laws or Amendments Promoting Decentralization Drafted with USG Assistance and; Number of Local Mechanisms Supported with USG Assistance for Citizens to Engage their Sub- national Government.

The actual FY07 results were below the targeted value for: the Number of Local Non-Governmental and Public Sector Associations Supported with USG Assistance and Number of Sub-national Government Entities receiving USG assistance to Improve their performance but both were within range. No other measurements are currently used to track progress of this element. One implementing mechanisms is currently contributing to these values.

During the year a high demand for U S G -assisted training was fueled by the passage of two new national regulations on accounting standards and financial management for which local governmentsmore than once if they participate in distinctly different trainings at different times and on different topics. Analysis is under way to determine the weight this has on the return. FY08 project values are targeted upwards.

2.3 Political Competition and Consensus-Building\2.3.2 Elections and Political Processes

Number of Domestic Election Observers Trained with USG Assistance

2.2 Good Governance\2.2.3 Local Government and Decentralization

Number of Sub-national Governments Receiving USG Assistance to Increase their Annual Own-

2.2.3 Local Government and Decentralization narrative (no more than 1500 characters)

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 3 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100,000 -

462 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

115 220 2,245 500 550 40 80 317 200 - 75 140 1,330 300 375

2.3 Political Competition and Consensus-Building\2.3.3 Political Parties

Number of Individuals who Receive USG-Assisted Political Party Training

Number of women Number of men

2.3 Political Competition and Consensus-Building\2.3.2 Elections and Political Processes

Number of People Reached by USG Assisted Voter Education

2.3.2 Elections and Political Processes narrative (no more than 1500 characters)

Quantitative reporting under this element will not being until FY08. Two implementing mechanisms are in the initial stages of implementation. FY08 projected values are established for: Number of Domestic Election Observers Trained with USG Assistance; Number of Election Officials Trained with USG Assistance; Number of Electoral Administration Procedures and Systems Strengthened with USG Assistance; Number of People Reached by USG Assisted Voter Education.

2.3 Political Competition and Consensus-Building\2.3.2 Elections and Political Processes

Number of Electoral Administration Procedures and Systems Strengthened with USG Assistance

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 5 11 10 11

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 4 10 8 9

1517 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 5 -

Number of CSO Advocacy Campaigns Supported by USG

2.3.3 Political Parties narrative (no more than 1500 characters)

The FY07 result for the number of Individuals who Receive USG-Assisted Political Party Training was significantly higher than the projected value. Confusion in the Operational Plan process resulted in FY07 projected values based on FY07 (NOA) resources only. Assistance was conducted for national and provincial level party trainings using FY06 funds. Particular emphasis was placed on Aceh in the lead up to the first-ever local election in December 2006. Gender groupings do not include values from the Aceh trainings.

The new political party strengthening program received FY07 funding at the end of the fiscal year and the results will be reported under FY08. The new NDI Peaceful Political Competition program received FY07 funding at the end of the fiscal year and the results will be reported under FY08.

The FY07 result for the number of political parties and political groupings receiving USG assistance to articulate platform and policy agendas effectively was two times higher than the projected value. This was also true for the number of USG-assisted political parties implementing programs to increase the number of candidates and members who are women youth and from marginalized groups Party support in four provinces was provided with FY06 funding. While the indicator reflects only national level parties (10) support actually reached 30 provincial chapters of national parties.

2.4 Civil Society\2.4.1 Civic Participation

2.3 Political Competition and Consensus-Building\2.3.3 Political Parties

Number of political parties and political groupings receiving USG Assistance to articulate platform and

2.3 Political Competition and Consensus-Building\2.3.3 Political Parties

Number of USG-assisted political parties implementing programs to increase the number of

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 100 - - - - - - - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - - - - - - - - - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - 15 -

1057 chars

2.4 Civil Society\2.4.1 Civic Participation

Number of USG Assisted Civil Society Organizations that engage in advocacy and

2.4.1 Civic Participation narrative (no more than 1500 characters)

No quantitative results will be reported under this indicator until FY08.An implementing mechanism under this element currently in the start-up phase. Targeted values are established for: Number of CSO Advocacy Campaigns Supported by USG; Number of participants in USG-funded programs supporting participation and inclusion of traditionally marginalized ethnic minority and/or religious minority groups and; Number of USG Assisted Civil Society Organizations that engage in advocacy and watchdog functions.

U.S.G. assistance has been engaged in discourse with political parties about involving women, youth, and marginalized groups, the parties with whom they’ve engaged are awaiting passage of the Political Law and Elections Bill before implementing specific programs. These laws will determine key issues, including nominating thresholds and gender-specific quotas. The FY 08 target has been adjusted to reflect an increase in the number of parties with whom U.S.G. partners will work next year, given the delays in the passage of the law this year.

2.4 Civil Society\2.4.1 Civic Participation

Number of People who Have Completed USG Assisted Civic Education Programs

Number of women Number of men

2.4 Civil Society\2.4.1 Civic Participation

Number of participants in USG-funded programs supporting participation and inclusion of traditionally marginalized ethnic minority and/or religious minority groups

Number of women Number of men

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

75,528 58,000 67,000 58,000 60,000

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

64 70 70 80 - - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - 1 1 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 50 46 50 - - 25 29 25 - - 25 17 25 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 20 2 40 20 - - - - - - - - - -

3.1 Health\3.1.2 Tuberculosis

Percent of all registered TB patients who are tested for HIV through USG-supported programs

number of women number of men

3.1 Health\3.1.2 Tuberculosis

Number of people trained in DOTS with USG funding

number of women number of men

Case notification rate in new sputum smear positive pulmonary TB cases in USG-supported areas

number of women (do not use, do not need to disaggregate)

3.1 Health\3.1.2 Tuberculosis

Existence of a multi-drug resistance for TB at the national level

3 Investing in People - Indonesia

3.1 Health\3.1.2 Tuberculosis

Average population per USG-supported TB microscopy laboratory

3.1 Health\3.1.2 Tuberculosis

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

59 80 47 90 60

1456 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

528,000,000 990,000,000 717,403,500 1,518,000,000 594,000,000

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 10,000 40,000 66,750 80,000

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1 - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

644,929 714,519 1,086,242 1,797,751 -

Number of cases of child diarrhea treated in USAID-assisted programs

3.1 Health\3.1.6 Maternal and Child Health

Number of antenatal care (ANC) visits by skilled providers from USG-assisted facilities

3.1 Health\3.1.6 Maternal and Child Health

Number of baseline or feasability studies

3.1 Health\3.1.6 Maternal and Child Health

network and establishment of reference laboratories in ''new'' provinces. Establishment of the lab network will be a priority for APA3.

3.1 Health\3.1.6 Maternal and Child Health

Liters of drinking water disinfected with USG-supported point-of-use treatment products

3.1 Health\3.1.6 Maternal and Child Health

3.1 Health\3.1.2 Tuberculosis

Percent of USG-supported laboratories performing TB microscopy with over 95% correct microscopy

3.1.2 Tuberculosis narrative (no more than 1500 characters)

Average population per microscopic laboratory has decreased from 75,000 to 76,000 (baseline) due to increasing number of lab facilities in all selected areas. This indicates that access to microscopic services has improved. Average population will remain higher in densely populated provinces (Java) and much lower in remote provinces. Specific solutions need to be determined for these remote areas, balancing access against requirements for quality assurance and logistics. (CHECK ON THIS).

There was no FY07 rise in CNR due to decreased supervision and surveillance as a result of GFATM restrictions, which hopefully will be lifted in APA3. M/F ratio is 1:4 which is slightly above the target of 1:1-1:3. There is a wide variety between provinces.

Percent of all registered TB patients who are tested for HIV through USG-supported programs. Delayed implementation of TB-HIV collaborative activities is the main reason for not achieving the target of 20% The target for APA3 has been adjusted (to 20%) M/F ratio to be determined after baseline assessment has been done in the 10 selected hospitals

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

255,345 691,159 630,175 632,745 1,197,760

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

432,073 552,716 520,602 607,391 549,808

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1 1 2 1 - - - - - - 1 1 2 1 - - - - - - - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

12 26 50 17 18

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1 - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

190,080 264,679 336,978 342,265 354,748

3.1 Health\3.1.6 Maternal and Child Health

Number of newborns receiving essential newborn care through USG-supported programs

3.1 Health\3.1.6 Maternal and Child Health

3.1 Health\3.1.6 Maternal and Child Health

Number of improvements to laws, policies, regulations or guidelines related to improved

3.1 Health\3.1.6 Maternal and Child Health

Number of monitoring plans

Number of deliveries with a skilled birth attendant (SBA) in USG-assisted programs

3.1 Health\3.1.6 Maternal and Child Health

Number of evaluations

process results other impact

Number of children reached by USG-supported nutrition programs

3.1 Health\3.1.6 Maternal and Child Health

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

381 14,926 63,221 746 4,094 - - 885 - 249 - - 4,094 - 347

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

572 3,077 4,157 3,042 2,425 - - 3,442 - 2,006 - - 715 - 419

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 1,548 1,855 - 521

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 90 87 - 35

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

38,179 96,804 141,976 103,264 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 51 NA 47 -

3.1 Health\3.1.6 Maternal and Child Health

Number of USG-assisted service delivery points experiencing stock-outs of specific tracer drugs

3.1 Health\3.1.6 Maternal and Child Health

3.1 Health\3.1.6 Maternal and Child Health

Number of people trained in research with USG assistance

3.1 Health\3.1.6 Maternal and Child Health

Number of postpartum/newborn visits within 3 days of birth in USG-assisted programs

number of women number of men

3.1 Health\3.1.6 Maternal and Child Health

Number of people trained in monitoring and evaluation

number of women number of men

3.1 Health\3.1.6 Maternal and Child Health

Number of people trained in maternal/newborn health through USG-supported programs

Number of people trained in child health and nutrition through USG-supported health area programs

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

275,882 372,262 383,784 416,092 409,221

1532 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 51 NA 47 NA

106 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 15,600,000 - - 6,000,000

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

400,065 227,505 313,702 175,000 320,105 - 19,033 na - - 17,167 na - -

number of women number of men

3.1 Health\3.1.8 Water Supply and Sanitation

3.1 Health\3.1.8 Water Supply and Sanitation

Amount of Private Financing Mobilized with a DCA Guarantee

3.1 Health\3.1.8 Water Supply and Sanitation

Number of people in target areas with access to improved drinking water supply as a result of USG assistance

Number of service delivery points reporting stock-outs of any contraceptive commodity offered by the

3.1.7 Family Planning and Reproductive Health narrative (no more than 1500 characters)

Data not yet available from service delivery point. Target date for data submission is November 9, 2007.

3.1.6 Maternal and Child Health narrative (no more than 1500 characters)

Due to supply-chain problems, the liters of drinking water disinfected with USG-supported point-of-use treatment products was well below the anticipated level. Retail outlet penetration from the original distributor was poor. A new owner for the product was named and the distributor replaced. As a result of this transition, there was a slow start up in the third and forth quarters of FY07. Assistance is also encountering barriers with uptake due to the newness of the product and the population’s inexperience with water treatment methods. Due to the revised estimates from the distributor for expected sales and the realization of slower than expected uptake, the FY 2008 target was revised downward.

The significant increase in the number of people trained in effective hand washing with soap is due to expansion of target beneficiaries. The original plan only targeted village cadres, but during implementation the hand washing campaign also reached out to posyandu participants (mothers/care givers of children under 5 years, pregnant and lactating women), and members of community - based groups (PD group, village level Family Welfare Movement/PKK, etc.). The FY 2008 is much less than FY 2007 results due to termination of USAID funding and project close out.

thin 3 days of birth in USG assisted programs was exceeded by almost 50% because of a substantially increased proportion of women reporting postpartum visits (including newborn) within 3 days (from 33% to 70%).

3.1 Health\3.1.7 Family Planning and Reproductive Health

Number of women receiving Active Management of the Third Stage of Labor (AMSTL) through USG-

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

63,211 196,546 194,840 9,000 17,415 - 94,405 na - - - 93,086 na - -

1383 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

4,118 9,516 6,676 12,793 12,276 2,293 5,298 4,862 6,716 10,011 1,825 4,218 1,814 6,077 2,265

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

120,235 243,039 212,719 473,039 359,239 58,314 119,522 104,054 232,522 175,649 61,921 123,517 108,665 240,517 183,590

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

65,926 123,794 65,926 249,592 114,486 34,163 64,254 34,163 129,668 58,235 31,763 59,540 31,763 119,924 56,251

3.2 Education\3.2.1 Basic Education

Number of learners enrolled in USG-supported secondary schools or equivalent non-school-based settings

number of women number of men

3.2 Education\3.2.1 Basic Education

Number of learners enrolled in USG-supported primary schools or equivalent non-school-based settings

number of women number of men

number of people who had access to water supply from schools.

3.2 Education\3.2.1 Basic Education

Number of administrators and officials trained

number of men number of women

number of women number of men

3.1.8 Water Supply and Sanitation narrative (no more than 1500 characters)

Amount of private financing mobilized. Achievements against this indicator is delayed for two reasons. First, given the novelty of the financing mechanism proposed, an intensive and extended effort has been required to build a consensus with the water utility and local government to proceed. Second, the nature of the project itself changed significantly to reflect a more conservative approach. This change included a reduction in the size of the capital expenditure from about $16 million to $6 million. The FY 2008 target has been revised accordingly.

The plan to build one big water catchments was put off based on the geological and technical analysis conducted by CRS, a local partner and the local government's public works office that recommended against the plan. Based on the recommendation from the Public Works office, the program constructed an alternative: a gravity-fed water pipeline system. The system required relatively low budget but reached more communities, hence provided access to clean spring water to more beneficiaries.

Further assessment on the need for renovated and newly-built water facilities resulted in significantly larger number of people gaining access to improved supply The number includes community members in

Number of people in target areas with access to improved sanitation facilities as a result of USG assistance

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

640 1,252 1,211 2,452 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

8,264 24,705 16,679 34,909 28,771 5,376 14,760 - 21,087 - 2,888 9,945 6,525 13,822 11,022

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

1,010 2,360 6,180 7,950 408,300

1457 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 10 - 10 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

20,000 1,009,500 9,000 1,509,500 2,009,500 - - - - - - - - - -

Number of higher education partnerships between US and host country higher education institutions

3.2 Education\3.2.2 Higher Education

Number of host-country individuals trained as a result of USG investments involving higher education institutions

number of women number of men

3.2.1 Basic Education narrative (no more than 1500 characters)

FY07 basic education performance data demonstrates that results exceeded targeted values for a number of USG programs. The number of distributed textbooks and teaching materials surpassed targets. Result were below targeted values for the number of administrators and officials trained; the number of learners enrolled in USG-supported primary schools and the number of learners enrolled in USG-supported secondary schools and other values.

The mission considers the number of learners enrolled in USG-supported primary schools or equivalent non-school-based settings essentially on target. There were slightly fewer schools selected in FY 2007. FY08 projected values are target-reduced as FY07 data indicates there are slightly fewer schools per district on average than was anticipated.

The number of learners enrolled in USG-supported secondary schools or equivalent non-school-based settings is below projections as it was anticipated that a mechanism would include Cohort 2 (Phase-2 expanded assistance) in FY07 This assistance has not yet benefited students FY08 figures are adjusted accordinglyand rural schools. These schools tend to be smaller with fewer numbers of teachers/educators. Out-year values are adjusted accordingly.

3.2 Education\3.2.2 Higher Education

number of women number of men

3.2 Education\3.2.1 Basic Education

Number of textbooks and other teaching and learning materials provided with USG assistance

3.2 Education\3.2.1 Basic Education

Number of Parent-Teacher Association or similar ‘school’ governance structures supported

3.2 Education\3.2.1 Basic Education

Number of teachers/educators trained with USG support

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 50 - 160 190

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

10 15 15 18 101

1502 chars

3.2.2 Higher Education narrative (no more than 1500 characters)

Data collected for USG measurements tracking FY07 performance indicates that results were equal to targeted values for the number of USG-supported organizations that strengthen the institutional capacity of host-country higher education institutions. Results were below projected FY07 values for the number of higher education partnerships between US and host country higher education institutions that address regional, national, and/or local development needs; and the number of USG-funded scholarship and exchange programs conducted through higher education institutions. Education partnerships were not reached due to delays in ESF disbursements. Ten English teaching assistants funded from FY07 funds only arrived in country in August 2007 and, consequently, the partnerships are not yet reflected.

The main variation for the number of host-country individuals trained is the delay of an English-language TV quiz series, as grants for this program were not awarded until September 2007. The quiz series for high school students is on target to be televised in FY08. Statistics for the national network that will broadcast the program projects a two million person audience. The USG scholarship and exchange mechanism was delayed and the grant was not awarded until FY07 As a result no students departed on scholarships in FY07 The first group of 20 Indonesian undergraduates departed on October 20 20olarships in FY07. The first group of 20 Indonesian undergraduates departed on October 20, 2007. Projections for FY08 are slightly down due to slightly higher administrative costs.

3.2 Education\3.2.2 Higher Education

Number of USG-funded scholarship and exchange programs conducted through higher education

3.2 Education\3.2.2 Higher Education

Number of USG-supported organizational improvements that strengthen the institutional

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 19 16 10 16

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 711 1,868 300 - - - - - - - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 65 67 20 25

1189 chars

Number of USG supported training events on topics related to investment capacity building and

4.2.2 Trade and Investment Capacity narrative (no more than 1500 characters)

Data collected for U.S.G. measurements tracking FY07 performance indicates that results exceeded targeted values for: the number of Capacity-Building Service Providers receiving USG assistance; the number of participants in USG supported trade and investment capacity building trainings and; the Number of USG supported training events on topics related to investment capacity building and improving trade. No other measurements are currently used to track progress of this element.

In FY07, the U.S.G. supported two trainings to increase trade capacity in addition to those already planned. The number of people attending trainings were often more than double what was anticipated. As a result, the actual value for the Number of participants in USG supported trade and investment capacity building trainings was 250% (1,157 Indonesians) higher than anticipated. In some cases, numbers were underestimated because of the narrow subject matter. However, some of these were regarded as important issues or had prominent authorities in attendance. FY08 projected values are adjusted upward accordingly.

Number of participants in USG supported trade and investment capacity building trainings

Number of women Number of men

4.2 Trade and Investment\4.2.2 Trade and Investment Capacity

4 Economic Growth - Indonesia

4.2 Trade and Investment\4.2.2 Trade and Investment Capacity

Number of Capacity-Building Service Providers receiving USG assistance

4.2 Trade and Investment\4.2.2 Trade and Investment Capacity

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - 8,442 - 13,840

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - 8,204 - 18,772 - - 1,321 - - - - 6,973 - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - 130 - 450

4.5 Agriculture\4.5.2 Agricultural Sector Productivity

Number of producers organizations, water users associations, trade and business associations, and

4.5 Agriculture\4.5.2 Agricultural Sector Productivity

Number of individuals who have received USG supported short term agricultural sector productivity training

Number of women Number of men

4.5 Agriculture\4.5.2 Agricultural Sector Productivity

Number of additional hectares under improved technologies or management practices as a result

4.5 Agriculture\4.5.2 Agricultural Sector Productivity

Number of agriculture-related firms benefiting directly from USG supported interventions

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - - 66

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- - - - 34

1161 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 1 - 1 -

443 chars

Data collected for U.S.G. measurements tracking FY07 performance indicates that results did not meet project values. The target (1) was a law for the Anti-corruption Court. While not in place, a draft was accepted by the official GOI committee tasked with drafting the new law. In FY08 assistance will be assessing potential amendments to Indonesia’s commercial laws and regulations, including its bankruptcy and intellectual property laws.

4.6 Private Sector Competitiveness\4.6.1 Business Enabling Environment

Number of the 11 core commercial laws put into place with USG assistance

4.6.1 Business Enabling Environment narrative (no more than 1500 characters)

4.5 Agriculture\4.5.2 Agricultural Sector Productivity

Percent change in value of purchases from smallholders of targeted commodities

4.5.2 Agricultural Sector Productivity narrative (no more than 1500 characters)

In FY07, a new implementing mechanism is currently being implemented across Indonesia to improve agricultural production to increase competitiveness. As the mechanism was just being awarded, no FY07 projections were provided in the previous Operational Plan submission. However, accelerated implementation of activities provided earlier than expected results for: the number of additional hectares under improved technologies or management practices as a result of USG assistance; the number of additional surveillance and/or control systems in place for agricultural threats (biological and environmental) as a result of USG assistance; the number of individuals who have received USG supported short term agricultural sector productivity training; the number of producers organizations, water users associations, trade and business associations, and community-based organizations (CBOs) receiving USG assistance; the percent change in value of international exports of targeted agricultural commodities as a result of USG assistance; and the percent change in value of purchases from smallholders of targeted commodities. FY08 projections are also provided.

4.5 Agriculture\4.5.2 Agricultural Sector Productivity

Percent change in value of international exports of targeted agricultural commodities as a result of

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 200 567 200 -

1789 chars

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

32,804 43,071 307,262 16,530 677,459 32,804 43,071 307,262 16,530 677,459 - - - - -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

22,949 6,282 77,354 7,046 78,994

Number of hectares under improved natural resource management as a result of USG

Number of hectares in areas of biological significance under improved management as a result of USG assistance

terrestrial marine

4.8 Environment\4.8.1 Natural Resources and Biodiversity

4.6.2 Private Sector Productivity narrative (no more than 1500 characters)

In order to improve the regulatory environment and drive business growth, PROMIS has begun implementing its Regulatory Impact Assessment (RIA) program with local governments across Indonesia, as well as at the national level with the Ministry of Trade. The program aims to strengthen the analytical capacity of local regulators, while also involving business and community groups in a more transparent policy- making process. Through a better understanding of regulatory impact, governments and their constituents will be able to create a business climate that is energized by good governance and economic growth. Although the RIA program is relatively new, local governments have been very receptive. Last year also saw the initiation of new RIA programs with provinces, as well as the permanent integration of RIA principles in local legislative processes.

The Reducing Barriers to Market Entry (PROMIS) Project is currently being developed and implemented in districts and provinces across Indonesia. Local government interest in the OSS technical assistance has been very strong. As part of a national level program to complement OSS establishment at the district/city level, the project assisted the Ministry of Home Affairs with the drafting of a decre

ia and providing national guidelines for OSS licensing centers. The project also continues its national level assistance by facilitating public consultations for the drafting of a Presidential Decree on OSS.

During the year Management capacity of over 567 firms were upgraded and at least 20% of these firms are engaging in various technical and management activities to help ensure sustainable4.8 Environment\4.8.1 Natural Resources and Biodiversity

4.6 Private Sector Competitiveness\4.6.2 Private Sector Productivity

Number of firms receiving USG assistance to improve their management practices

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

3,252 1,500 8,282 600 1,094 972 450 2,048 180 260 2,280 1,050 6,234 420 640

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

445 2,000 1,821 2,000 - 122 600 - 600 - 323 1,400 - 1,400 -

2006 * FY 2007 Target

FY 2007 Actual

2008 Original Target

2008 Revised Target

- 7 26 5 50

1543 chars

nservation. Stakeholders have agreed to produce regulations to support their activities. The FY 2008 target has been increased accordingly. All FY08 projected values may need revision as future project sites are finalized.

4.8 Environment\4.8.1 Natural Resources and Biodiversity

Number of policies, laws, agreements or regulations promoting sustainable natural resource

4.8.1 Natural Resources and Biodiversity narrative (no more than 1500 characters)

The FY07 result were significantly higher for the number of hectares in areas of biological significance under improved management as a result of USG assistance. This was due to the high level of support from community groups, local governments and park authorities for decentralized, collaborative management of ten protected areas and forest areas of high conservation value across six provinces in Java and northern Sumatra. Additional project sites will become operational in FY08. The FY07 result were significantly higher for the number of hectares under improved natural resource management as a result of USG assistance. This was due to the high level of support from community groups, national and local government agencies and the private sector committed to improved natural resources management through critical land rehabilitation of upper watershed areas in Java and northern Sumatra.

The number of policies, laws, agreements or regulations promoting sustainable natural resource management and conservation that are implemented as a result of USG assistance exceeded FY07 projections as a result of the effectiveness of community-based activities and increasing support from U S G partners For example: Field School activities increased awareness of sustainable natural reso

4.8 Environment\4.8.1 Natural Resources and Biodiversity

Number of people with increased economic benefits derived from sustainable natural resource management and conservation as a result of USG assistance.

number of women number of men

4.8 Environment\4.8.1 Natural Resources and Biodiversity

Number of people receiving USG supported training in natural resources management and/or biodiversity conservation

number of women number of men