Evaluation Summary
I. Outline of the ProjectCountry: Republic of Indonesia
Project Title: Project for Strengthening Decentralized Environmental Management System(DEMS)
Issue/Sector:Cooperation Scheme: Technical Cooperation Project (formally known as “Project-type
Technical Cooperation)
Division in Charge: Environmental Management Team I, Group II, Global Environment
Department
Period of Cooperation(R/D): 1 July 2002 - 30 June 2006
Total Cost (at the time of evaluation): 550 million yen
Partner Country’s Implementing Organization(s):Environmental Management Center (EMC), Ministry of the Environment (KLH)
Provincial Environmental Impact Management Agency, North Sumatra(BAPEDALDA-NSP)

Province

Supporting Organization(s) in Japan: Ministry of the Environment; National Institute forEnvironmental Studies (NIES)
Related Cooperation:

1. Background to the ProjectIn the Republic of Indonesia, rapid rural-to-urban migration and economic growth weretaking their toll in the form of environmental pollution, including air and water pollution, inGreater Jakarta, other urban areas, and elsewhere. To tackle issues of deteriorating
environment in Indonesia, Japan offered grant aid in 1993 and project-type technicalcooperation between 1993 and 2000 to establish the Environmental Management Center(EMC), a hub institution in the environmental management sector in the country, and develop
human resources for EMC. Through these schemes, Indonesia developed a framework for
conducting basic environmental monitoring.
The decentralization process, which started in 2001 in Indonesia, makes it necessary for local
governments to establish their own institutional framework for environmental management.
In this context, EMC is urgently required to play a leading role in building up theorganizational and individual capacity of Provincial Environmental Impact Management
Agencies (BAPEDALDAs), including more effective use of equipment at regional
laboratories that had been provided through a loan assistance and other cooperation schemes).
1Moreover, the reorganization of the administrative machinery of Indonesia has resulted in
more roles and functions for EMC. In other words, EMC needs not only to conduct
environmental monitoring but also to produce recommendations on specific policies andaddress growing environmental challenges such as hazardous waste based on the findings ofsuch monitoring.
In July 2002, JICA launched this Project for Strengthening Decentralized Environmental
Management System in Indonesia (the “Project”), designed to develop the capacity of EMC totranslate monitoring data into more specific environmental policies and build up the capacityof the environmental departments of local governments amid the decentralization process.
The Project Purpose was to “establish, by the initiative of EMC, a framework ofenvironmental management in which EMC and Provincial Environmental Impact
Management Agencies (BAPEDALDAs) work together.” With six months to go before theProject was to be completed in June 2006, JICA sent the Termination Evaluation Team toIndonesia for the purpose of assessing the achievement of the Project Purpose in accordancewith the JICA Guideline for Project Evaluation (March 2004).

2. Project Overview(1) Overall Goal: To strengthen environmental management capabilities at the central andlocal government levels(2) Project Purpose: To establish, by the initiative of EMC, a framework of environmental
management in which EMC and BAPEDALDAs work together(3) Outputs
1) Options for addressing specific environmental problems will be developed in the modelsite (North Sumatra Province) based on reliable monitoring data and scientific knowledge.
2) Capabilities of EMC for providing KLH and BAPEDALDAs with scientific knowledge
and technical guidance on environmental management will be reinforced.
3) Expertise in proper environmental monitoring and surveillance methods will be transferred
to local governments.

(4) Inputs (by the time of the Terminal Evaluation in February 2006)
Japanese side:
Long-term Experts: 4 experts
Short-term Experts: 22 experts
Trainees received: 12 persons

Equipment: approx. 113.55 million yen
Local cost: approx. 4,113 million Rp.

Indonesian side:Counterparts: 84 persons2Local cost
EMC: 26,353 million Rp.
BAPEDALDA-NSP: 28,482 million Rp.
PUSARPEDALDA: 790 million Rp. (including costs for those other than the projectactivities)
Others: Land and facilities (an office for Japanese experts, a chemical laboratory, analyticalequipment, etc.)

II. Evaluation Team
Members of Evaluation Team
Role/responsibility:
Name
Position
Team Leader
Kiyoshi MASUMOTO Director, Group II, Global Environment Department
Environmental Policy Kuninori OTSUBO
Vice Director, Water and Soil Environmental
Division, National Institute for Environmental Studies
Environmental Management Masaoki KOBAYASHI
Chief Senior Staff for Planning,Planning and General Affairs Division, Environmental Pollution Control Center, Osaka
PrefectureCooperation Planning Miwa HIASA Environmental Management Team I, Group II,Global Environment Department, JICA
Evaluation Analysis Hideaki HIGASHINO Senior Consultant, RECS International Inc.
Period of Evaluation: 24 January - 7 February 2006
Type of Evaluation: Terminal Evaluation

III. Results of Evaluation
1. Summary of Evaluation Results(1) Relevance: High even at the time of the Terminal Evaluation
The Evaluation Team concludes that the Project is highly relevant at the time of theevaluation for the following five factors. First, environmental pollution has been attracting
increasing attention in recent years in Indonesia. For example, the National Development
Program for 2005-2009 has defined addressing environmental problems including waterpollution, air pollution, and deforestation as an issue of strategic importance for thesustainable national development. Second, the project goal of establishing an environmental
management framework with increasing local autonomy in mind is highly relevant to theneeds of Indonesian society. The process of decentralization, which started in 2001, is calling
for local governments to establish their own institutional framework for environmentalmanagement. Third, technology transfer to personnel at EMC and local government officials
in charge of environmental management is relevant to the need for building up the capacity ofIndonesian administrators who have been and will be leading public administration in this
sector. Fourth, environmental conservation is one of the focus sectors in the aid policy of the3Japanese government for Indonesia. Likewise, the JICA Country Program for Indonesia
identifies environmental conservation (improving the urban environment) as one of its focus
sectors. Fifth, a series of cooperation activities aimed at improving the analytical andmonitoring capabilities and developing the environmental management framework based on
accurate data represent one of the fields that Japan has a technical advantage over many otherdonors.

(2) Effectiveness: High (in terms of achievement on the Project Purpose)
The Evaluation Team concludes that the Project is highly effective because of its
achievements in relation to the Project Purpose, including improved capabilities of personnel
at PUSARPEDAL (EMC) and BAPEDALDA, and the establishment of a basic framework ofenvironmental management. The Outputs toward the attainment of the Project Purpose havelargely been achieved according to plan. The table below summarizes the VerifiableIndicators for the Project Purpose and the performance on them.

Verifiable Indicators for the Project Purpose
Performance
1. By 2006, BAPEDALDA-NSP implements some options for addressing water pollution ofthe Deli River with assistance from EMC.
In 2005, BAPEDALDA-NSP took the initiative in formulating and implementing a strategic
environmental improvement program for North Sumatra Province (the Demonstration Site
Station [DSS] Program), which was aimed at cleaning up the Deli River with the participationof local communities, the private sector, NGOs, and other entities, and in collaboration withEMC.
2. By 2006, the number of agreements for cooperation between EMC and environmental
impact management agencies of local governments.
By the time of the Terminal Evaluation in December 2005, EMC has three partnershipagreements and 60 cooperative agreements with environmental impact management agencies
of local governments. This is a clear sign that the relationship between them has been
improving gradually since the launch of the Project.
3. Every year, 30 provinces and ten cities submit a report on water quality monitoring and air
quality monitoring, respectively, to EMC, which processes the data for the State of theEnvironment Report (SoER).
By December 2005, 30 cities and 30 provinces have submitted an environmental monitoring
report on water and the air, respectively, to EMC. The data in these reports were compiled
and used for the State of the Environment Report of 2002, 2003, and 2004.

(3) Efficiency: High-Moderate

4Japan and Indonesia provided their respective inputs largely according to schedule. Theseinputs were appropriate in quality, quantity and timing, despite a delay in assigning JICA
experts from Japan and inadequate operation and management of analytical equipment fromIndonesia.
With regard to the outputs from these inputs, the Evaluation Team observes that the Project
has achieved Output 1, Output 2 (capacity building of EMC personnel), and Output 3(technology transfer to North Sumatra Province and training of personnel at regional
laboratories and local governments). The achievement level for Outputs 1 and 3 is consideredespecially high. Considering all these factors, the Evaluation Team concludes that theefficiency of the Project is high-moderate.

(4) Impact: Positive with no major negative effects
The Project has had major positive effects at different levels. At the policy level, the Ministryof the Environment (KLH) has secured budget allocations to provide more than 300
districts/cities with analytical equipment that is necessary to establish an environmental
monitoring framework at the local level. At the organizational level, the environmentallaboratory has been promoted in status from a provisional entity to a formal entity ofBAPEDALDA-NSP. At the technical level, the pollutant load model developed in the Project
Purpose has been applied to the Cisadane River in Java for the purpose of watershedmanagement.
It is too early to accurately predict whether the Overall Goal (“to strengthen environmental
management capabilities at the central and local government levels”) will likely be achieved
as a positive effect of the Project. This is mainly because the establishment of anenvironmental management framework will largely depend on the initiative by the central
government and the decision and policy of local governments. There are some positive signs,
however, that the environmental monitoring framework is being established in Indonesia as awhole. They include the successful case of PUSARPEDALDA-NSP, and the establishmentof BAPEDALDA laboratories. The Evaluation Team therefore concludes that the Overall
Goal can be achieved if the Indonesian side extends the project activities to other provinces
under the collaborative framework that has been formed in the Project and if this in turnimproves the environmental management capacity of the central government as well as local
governments in Indonesia.

(5) Sustainability: High-Moderate
As has been noted in the earlier section on Relevance, the National Development Program
gives high priority to environmental conservation in the context of sustainable nationaldevelopment. The Project, which is highly relevant to the policy of the Indonesian
government, will likely be able to continue receiving policy support. As the only referencelaboratory in Indonesia, EMC has the human capacity and experience to continue and develop
project activities after the completion of the Project. As such, the organizationalsustainability will likely be ensured.
BAPEDALDA-NSP has already developed its capacity as a result of the pilot project. Theenvironmental impact management agency now conducts regular environmental monitoring.
5Based on the monitoring data, the agency has already produced policy recommendations andimplemented the DSS Program in an effort to control the pollution of the Deli River. It also
operates and maintains its monitoring and other equipment more than satisfactorily

2. Contributing Factors(1) Concerning the project plan
The Japanese government provided grant aid in 1993 and project-type technical cooperation
between 1993 and 2000 to establish EMC, a hub institution in the environmental management
sector in Indonesia, and develop human resources for EMC. Through these schemes,
Indonesia developed a framework for conducting basic environmental monitoring.
Building on a series of these activities, the Project was designed to “establish, by the initiativeof EMC, a framework of environmental management in which EMC and BAPEDALDAs
work together” amid the process of decentralization that started in 2001. Because of its highrelevance to the needs of Indonesian society, the Project won the support from the central
government and active involvement of districts/cities and communities.
(2) Concerning the implementation process
1) The Project has been implemented in coordination with other Japanese cooperation
schemes, including the assignment of Senior Volunteers to the environmental laboratory ofBAPEDALDA-NSP, the assignment of an individual JICA expert to KLH as a policy advisor,
and JBIC's Regional Monitoring Capacity Development (RMCD) Project, which provided
analytical equipment to regional laboratories of the government. Close coordination with allthese cooperation schemes has helped move the project process forward.
2) Another major contributing factor is appropriate inputs from the Japanese and Indonesiangovernments. The Japanese inputs include technology transfer by long-term and short-term
experts, and trainings in Japan. The Indonesian inputs include the provision of facilities andequipment, and the retention at EMC of counterparts (C/P) who had gained basic technicalskills through the grant aid and project-type technical cooperation mentioned earlier.

3. Inhibiting Factors(1) Concerning the project plan
Although the Project is highly relevant, the project design was vague in the definition of someindicators and words and terms. These inadequacies had already been identified forimprovement in the Mid-term Evaluation, but no fundamental improvements to them havebeen made.
(2) Concerning the implementation process1) It is noted that communication between the Japanese experts and the Indonesiancounterparts (C/Ps) was inadequate in the first half of the project period (due in part tolanguage barriers and few opportunities to mingle with each other).
62) The Project organized a task force of C/Ps whenever the necessity arose. This approachhas resulted in too many C/Ps to manage (84 persons). In some cases, C/Ps were not assigned
in time for the assignment of Japanese short-term experts. JICA could not always
accommodate the needs of C/Ps, failing to provide advanced technical guidance to C/Ps at
EMC who already had basic technical skills.
3) The Indonesian side has not properly operated and maintained some of the analytical
instruments that had been provided from the Japanese government through more than ten
years of development assistance. The Japanese side inspected and repaired them as necessary
at its expense.

4. Conclusion
The Evaluation Team has concluded that the Project is largely achieving its purpose based ona series of consultations with the project stakeholders and field inspections in Indonesia. The
Project will be terminated by June 30, 2006 as specified in the Record of Discussions (R/D).
A major achievement of the Project that deserves attention is that technology transfer from
EMC and the Japanese experts has allowed BAPEDALDA-NSP to acquire sufficient skills to
obtain and analyze environmental data with high precision. By analyzing water quality
monitoring data, this environmental impact management agency identified the pollution
sources of the Deli River. It played the leading role in taking a package of measures tocontrol these sources in cooperation with EMC. This package, known as the DSS Program, isbeing implemented with the participation of a wide range of stakeholders, including NGOs
and local communities. It is now producing positive results.
Attaining the Overall Goal requires the initiative and commitment of Indonesian side toextending the project activities to other provinces under the collaborative framework that has
been formed in the Project and to improving the environmental management capacity of thecentral as well as local governments in the process.

5. Recommendations (specific solutions, suggestions and advice for the Project)(1) Continued efforts to attain the Overall Goal
Providing technical support to BAPEDALDAs and regional laboratories (environmental
monitoring, and the development and implementation of corrective measures) is an importantrole of EMC as the only reference laboratory under the Ministry of the Environment (KLH).
As a result of decentralization, BAPEDALDAs has come to assume additional importantduties, including addressing environmental issues involving more than one district/city within
the province, ensuring coordination among districts/cities, and planning and managing theprovincial environmental monitoring system. In other words, EMC should continue to makeefforts to build a collaborative relationship with BAPEDALDAs. To that end, it needs toprovide technical guidance that suit their conditions and technical levels. Continued efforts
are also required to the capacity of building personnel. KLH should properly appreciate theimportance of the roles EMC plays in building a regional environmental management

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framework in Indonesia. Accordingly, the ministry should secure budget allocations for theactivities of EMC.
(2) Effective use of the knowledge gained in the Project, including data and its analyticalfindings
Two major products of the Project--the success of the pilot project in North Sumatra Province,
and the remarkable improvement of the monitoring and analytical skills of the personnel atEMC--should be disseminated to other sections and departments of KLH, BAPEDALDAs,
other ministries, and even the public at large. Information on these two products should beoffered to other provincial governments and districts/cities as best practice in province-led
environmental management.
(3) Proper O&M of equipment
Proper operation and maintenance (O&M) of equipment is increasingly important at EMC,
which is required to perform advanced analysis and accurate data analysis as a referencelaboratory. Nevertheless, the Evaluation Team has found that O&M of some analytical
instruments may not be proper, although many of them were provided in the 1990s and timeworn. During the project period, major instruments were repaired by the Japanese experts andothers. After the completion of the Project, however, EMC should waste no time to build aO&M framework (including planning, and financial and human resources) for performanceefficiency. The Evaluation Team has learned that KLH and EMC have taken a step toward
securing the budget for that purpose. EMC and the team of Japanese experts have decided toformulate an O&M plan by the completion of the Project. The Indonesian side should
extradite this move.
The situation of regional laboratories is more serious. They are operated under severebudgetary and personnel constraints, except for those in only a few districts/cities. Theselaboratories have difficulty in operating and maintaining equipment, procuring expensive
reagents, and recruiting and training staff. KLH and the Evaluation Team have agreed thatthe ministry should develop O&M and replacement plans and make other efforts to manage
equipment from a long-term perspective. They have also agreed that it is necessary to devise
measures to make better use of regional laboratories. The Indonesian side is advised to act onthese shared views.

6. Lessons Learned (especially those that provide information that is useful foridentifying/formulating, implementing, and administering similar projects)+(1) Coordination with other cooperation scheme of the Japanese government
The Project has been implemented in coordination with other Japanese cooperation schemes,including the assignment of Senior Volunteers to the environmental laboratory ofBAPEDALDA-NSP, the assignment of an individual JICA expert to KLH as a policy advisor,and JBIC’s Regional Monitoring Capacity Development (RMCD) Project, which provided
analytical equipment to regional laboratories of the government. The Project has also taken
advantage of the outcomes of grant aid and project-type technical cooperation that wereprovided to Indonesia over more than ten years from 1993. Close coordination with and8effective use of all these cooperation activities have made the Project all the more efficientand effective.
(2) Coordination and collaboration with Indonesian organizations concerned
Close coordination and collaboration with KLH, EMC, BAPEDALDAs, municipalities, NGO,and other organizations concerned in Indonesia have enabled the integrated management of
the Deli River and has served as a key to the success of the pilot project in North Sumatra
Province. This experience clearly shows that cooperation with a range of government
agencies, laboratories, and citizens is instrumental in developing an appropriate system forenvironmental management.

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