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USAID/Indonesia 

Operational Plan 

FY 2006 

June 12, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: The devastating earthquake and tsunami that hit the Indian 

Ocean region on December 26, 2004 wreaked its greatest havoc and caused the most significant 

damage and loss of life in Aceh Province of Indonesia. The response of USAID/Indonesia staff and our 

partners to the unprecedented humanitarian emergency, and the subsequent herculean reconstruction 

requirements, has been heroic. Despite these major and unexpected requirements, USAID/Indonesia 

moved ahead this year with the full roll-out and implementation of all new programs developed under the 

new FY 2004-2008 country strategy. 

The USAID program in Indonesia is both “Helping Indonesia to Succeed” and supporting high priority 

USG policy objectives. The program works with the Government of Indonesia (GOI), local governments 

and private partners, including civil society, to (a) improve the quality of basic education; (b) improve the 

delivery of essential public services at the community level, including health services and clean water; (c) 

create a better business, trade and investment environment that will support economic growth that 

generates new and better jobs; (d) promote more accountable and transparent governance at the national 

and local levels; and (e) promote biodiversity and environmental protection. 

In the past year, these programs have allowed USAID and its partners to lay the foundation for a better 

future for the people of Indonesia. Flexible implementation mechanisms and constant assessments of 

needs and opportunities allowed USAID to respond rapidly to more immediate requirements as varied as 

response to the Indian Ocean tsunami disaster; implementation of the Aceh peace accord; avian 

influenza and polio outbreaks; and an HIV/AIDS epidemic that risks breaking out into the general public. 

Anti-corruption support includes a focus on governance issues in all USAID sectors, as well as specific 

institutional support for justice sector reform. Corruption is one of the most difficult economic and 

democratic development issues faced by Indonesia today, and one of the highest priorities of the 

Yudhoyono government. With USAID and other assistance, continued progress in the fight against 

corruption and better results in delivering basic services to its people will help Indonesia to qualify for full 

support from the Millennium Challenge Corporation. Indonesia was just approved for MCC “threshold 

status.” 

Challenges: With an estimated 240 million citizens, Indonesia is the fourth largest country in the world. 

As the largest Muslim-majority country in the world, Indonesia can continue to be a model for the 

compatibility between a democratic political system and moderate Islamic thought and practice. Both the 

population size and the country's area present challenges. Indonesia consists of an archipelago of 

17,000 islands, spreading in an arc that would link Seattle to Key West. Every imaginable development 

challenge exists from economic growth to education, from health to governance. Indonesia's rich 

biodiversity is, unfortunately, threatened. 

After the 2004 election of President Susilo Bambang Yudhoyono (in the largest one-day direct democratic 

election in history), his Administration began actively pursuing its fight against corruption. Under his 

leadership, Indonesia has become an even stronger partner of the United States in the global war on 

terrorism. Indonesia is working hard to provide good jobs and a better future for its people, but requires 

assistance to address each of these critical challenges. Indonesia is also on the front lines of the 

worldwide fight against avian influenza and HIV/AIDS while dealing with the re-emergence of the wild 

polio virus. A country this large and diverse, with such extensive borders, requires constant vigilance and 

often direct USAID assistance to address such global health threats. The devastating impact of the 

Indian Ocean tsunami disaster on Aceh province, and the subsequent Aceh peace accord between the 

Government of Indonesia and the Free Aceh Movement, offer both monumental challenges and historic 

opportunities to help Indonesia succeed and, at the same time, to pursue critically important U.S. national 

interests. 

Key Achievements: 

Education: USAID education programs, part of President Bush's Education Initiative for Indonesia, 

showed important progress in FY2005. Training and technical assistance have tangibly improved 

education management, classroom teaching practices, and student achievement. Students are more 

actively engaged in the learning process, working together and using problem-solving skills rather than 
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rote learning. Parents are satisfied with their increased involvement in schools, while teachers, now 

feeling more accountable to parents, are preparing better lesson plans and improving the classroom 

environment. Student achievement from 2004 to 2005 in USAID-supported schools improved 

significantly in key subjects: grade 4 reading (18%), grade 5 science (14%), grade 4 math (7%), and 

grade 1 reading (5%). In one sub-district, four USAID-supported schools at the bottom of the 2003 

rankings for overall 6th grade achievement, now rank in the top five (of 48 schools). USAID-supported 

districts have developed progressive education plans that better target resources for school operations 

and teacher deployment. Nine districts are using a needs-based funding approach to make education 

budgeting more rational and transparent. School budgets, developed with community participation, are 

now displayed publicly to promote transparency and accountability. Student achievement among girls 

has improved in key curriculum subjects such as math, writing and reading. School officials and teachers 

from newly participating districts have visited communities and schools where USAID education pilot 

programs have been active. These study tours have been highly effective. Other districts have adopted 

USAID-promoted best practices, using their own resources, thus benefiting an additional 2,100 schools 

and 650,000 students. Such best practices in education will be further expanded in FY 2006 and 2007. 

By program completion, local governments will be managing education more effectively; private schools 

will be performing better in key subject areas such as math, science and reading; teachers will be more 

qualified to teach the national curriculum and youth will have more relevant skills to compete for jobs. 

Basic Human Services and Healthy Ecosystems: These two programs work in a fully integrated fashion, 

focusing on the interdependence of human health and the environment. They link “upstream” and 

“downstream” service delivery. For example, watershed management and biodiversity conservation 

activities work to stabilize and improve the supply of water to urban and peri-urban population centers 

through the promotion of sustainable land use practices, thereby benefiting downstream water, sanitation 

and health service providers. 

A total of 56,400 people in previously unserved areas received access to clean water, and 15,275 people 

in previously unserved areas received access to sanitation services. HIV/AIDS programs have reached 

over 1,300,000 people in the past year. These results have led to an increase in condom use, reductions 

in sexual partners (faithfulness), and increased use of clinic services. The national TB Case Detection 

Rate increased from 52% in 2004 to 60% in 2005; over 4,000 medical professionals have been trained to 

better diagnosis and treat tuberculosis. Advocacy initiatives included eight water-for-life and 

handwashing outreach campaigns resulting in over 114 media stories, as well as the establishment of 

eight multi-stakeholder water forums which mobilized local governments, community organizations and 

the private sector to advocate for higher quality services. Eleven thousand vulnerable people received 

non-emergency P.L. 480 Title II food assistance in 4 provinces. Over $38 million in government, donor 

and private resources was leveraged to advance program objectives in HIV/AIDS prevention, water and 

sanitation services delivery and watershed/forest rehabilitation. 

In the environment sector, two projects under the Presidential Initiative Against Illegal Logging (PIAIL) 

which promote forest certification, legality verification, and combating illegal logging continued from the 

previous year into FY 2005, maintaining their focus in the existing project areas. They improved the 

quality of forest management and deepened impact in areas comprising 970,000 hectares. In these 

hectares, USAID has successfully influenced two giant pulp and paper companies, to delineate High 

Conservation Value Forests in their concessions in Riau so far resulting in over 150,000 hectares of 

forests being protected rather than cleared or exploited. 

USAID continued its efforts to protect endangered orangutans and their habitat through community and 

local government participation. USAID has been working in East Kalimantan covering approximately 

350,000 hectares cumulatively over FY 2004 and FY 2005. Progress included: a) signing an agreement 

with a concessionaire through the Tropical Forest Trust for timber certification harvested from sustainably 

managed forest; b) signing a memorandum of understanding between a concessionaire with local 

communities on a community designated conservation area covering 4,000 hectares not to be logged; 

and c) assisting two multi-stakeholder management councils to start planning two new protected areas. 

USAID also facilitated short courses for district officials in land use and conservation planning, conflict 

resolution methods, and the use of Geographic Information Systems (GIS). In forest dependent villages, 
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the project provided direct benefits to six communities through a health and clean water program, created 

alternative livelihoods by establishing a rattan cooperative, and carried out village mapping and 

community land use planning to identify culturally or ecologically important areas to be conserved. In 

return, these communities have signed Community Conservation Agreements that commit them to keep 

their village areas free of illegal logging and to not hunt orangutans, covering approximately 120,000 

hectares. World Education (WE) continued efforts to reduce pressure on globally significant orangutan 

populations in Tanjung Puting National Park by protecting their habitat and through an integrated 

conservation and development approach focusing on community livelihood development, especially 

agriculture. In the park,the quality of the guard posts has improved and the number of patrol systems has 

increased from twelve in FY 2004 to sixteen in FY 2005. 

Democracy and Decentralized Governance: In light of the historic Aceh peace accord, USAID supported 

public information campaigns on the peace agreement and provided swift technical assistance to the 

Government of Indonesia and the Free Aceh Movement on implementing the peace. As a result of 

USAID's efforts with local governments and civil society organizations, corrupt officials are being 

prosecuted or voted out of office. Over 2,300 municipal leaders received USAID training in improved 

service delivery and transparent management of community assets. In the judicial sector, the Supreme 

Court with USAID assistance has taken important steps. For the first time, the Court has opened its case 

records to public scrutiny and is allowing input into the Judicial selection process. The Attorney General’s 

Office issued its “Roadmap” for reform to address transparency, accountability and public confidence 

concerns. This Roadmap was seen as a bold step towards reform for an institution traditionally regarded 

as highly corrupt. The National Parliament in an unprecedented step began drafting and submitting 

legislation to the Executive Branch rather than the reverse procedure as is the practice in Indonesia. At 

the end of the program, USAID will have advanced the growth of democracy and good governance, 

including civil society, the rule of law, respect for human rights, and religious freedom. With regards to 

gender issues, USAID continued to support efforts to increase women’s participation and representation 

in politics and assisted local organizations in the drafting, monitoring and implementing of laws and 

policies which promoted the rights of women. 

Economic Growth Strengthened and Employment Created: Indonesia’s economy grew 5.7% in 2005 due 

to increased investment. Non-oil exports edged higher to 25% of GDP. Fuel prices were hiked 126% on 

October 1 and arrested the budgetary hemorrhage/fiscal instability caused by costly subsidies. USAID 

technical assistance on the importance of fuel subsidy reductions contributed to the energy policy 

dialogue. With USAID anti-financial crime assistance, GOI and other donor collaboration, Indonesia was 

removed from the international money-laundering black-list in February 2005. Banks and non-bank 

financial institutions filed an increasing number of currency and suspicious transaction reports, surpassing 

expectations. Prosecutions and convictions also increased. In July, the first money laundering conviction 

was handed down with an 8-year jail sentence. In September 2005, the Deposit Insurance Agency came 

into being with USAID support, and as a result international rating agencies increased Indonesia’s 

sovereign debt rating to BB-, which reduced the cost of borrowing. USAID established 15 one-stop 

service centers for improved business registration, slashing time to register a business from 32 days to 

thirteen and cut costs by two-thirds. Economic growth programming is sensitive to gender issues in job 

creation and household income-related activities. Gender balance is taken into consideration for all 

training activities. 

Global Development Alliance and Partnerships: In FY 2005, USAID/Indonesia leveraged $75 million from 

Global Development Alliances (GDAs) and partnerships with non-traditional partners, primarily from the 

private sector. A GDA with the World Wildlife Fund (WWF) and The Nature Conservancy (TNC) 

continued to promote the reduction of illegal logging through a certification program which has been 

successful in identifying legal and illegal logging supplies. USAID has developed a new GDA in fiscal 

year 2005 with WWF devoted to rebuilding homes in Aceh with responsibly-harvested forest products. 

The SUCCESS alliance devoted to improving cocoa yields leveraged $65 million in partner resources in 

FY 2005. Finally, the Alliance for Indonesia Insurance continued to develop training programs for 

Indonesian insurance professionals. 

Presidential Initiatives: In FY05, four Presidential Initiatives were implemented in Indonesia. The 
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Education Initiative for Indonesia is supporting activities that improve the quality of teaching and learning; 

improve capacity of local governments to provide and effectively manage basic education services and 

develop programs for youth to gain more relevant life and work skills to better compete for jobs in the 

future. The AIDS Relief Initiative is supporting activities in Indonesia that promote safe sexual behavior 

and prevents HIV transmission among injecting drug users. HIV/STI services, GOI HIV/STI surveillance 

systems and HIV prevention capacities of local organizations and private sector partners are all 

addressed under the initiative. Core transmitter groups are targeted to curb the epidemic before it gains a 

critical mass and spreads to the general population. The Digital Freedom Initiative is supporting activities 

in Indonesia that increase access to information technologies. Small and medium enterprises (SMEs), 

primary school students and rural populations all benefit from the initiative. The Water for the Poor 

Initiative is already improving the quality of water for thousands of Indonesians. Assistance targets 

improvements at both the district and household levels. 
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FY 2006 Program 

SO: 497-018 Improved Quality of Decentralized Basic Education 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($20,916,000 DA; $7,000,000 ESF). To strengthen 

the management and governance of education, USAID is working directly with local governments, 

communities, and schools struggling to assume new responsibilities for education service delivery in a 

decentralized Indonesia. Through technical assistance and training, USAID is providing skills for 

accountable and transparent planning, budgeting, and management of education services; increasing 

parental participation; and fostering quality-oriented school and community relations. 

To improve the quality of teaching and learning, USAID is providing in-service teacher training in 

partnership with local teacher training universities, upgraded teaching and learning materials emphasizing 

active learning methodologies, and professional development opportunities. Training and materials are 

being provided to teachers of grades one to nine (Indonesia’s definition of basic education) in order for 

them to master key subjects such as math, science, and basic literacy. Activities are resulting in 

improved teaching of the competency-based national curriculum as well as better student and school 

performance. To improve early childhood education, USAID is funding the development and production 

of an Indonesian version of Sesame Street. USAID will fund a new program to improve education quality 

for visually-disabled children and promote inclusion in schools. In addition, USAID will initiate a new 

program to establish a partnership between the University of Kentucky and three Indonesian universities. 

 

To assist junior high youth who are out of school or at risk of dropping out, USAID is strengthening formal 

and non-formal education opportunities to enable youth to gain more relevant life and work skills, 

including instruction in computers, English, and civics. As a result, these vulnerable youth will be able to 

better compete for jobs in the future and contribute to Indonesia’s long-term development. 

The USAID education program currently works in forty-six districts in Java, North Sumatra, and South 

Sulawesi with 23,900 education administrators and teachers directly serving 301,500 students in 990 

public and private schools. In FY 2006, USAID will expand the education program to improve the quality 

of education in post-tsunami and post-conflict Aceh. 

Principal Implementers: Research Triangle Institute, Education Development Center, Save the ChildrenU.S., Sesame Workshop, Helen Keller International, Academy for Educational Development, The Asia 

Foundation, International Relief and Development, University of Massachusetts, Florida State University, 

University of Pittsburgh, and University of Kentucky. 

Transfer to U.S. State Department Programs ($4,000,000 ESF). Funds will be transferred to the State 

Department for education activities, such as scholarships and exchanges, higher education partnerships 

with U.S. universities, book translation/distribution, and English training for teachers. 

FY 2007 Program 

SO: 497-018 Improved Quality of Decentralized Basic Education 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($15,000,000 DA; $11,000,000 ESF). USAID will 

continue providing technical assistance and training to improve skills for accountable and transparent 

planning, budgeting, and management of education services, increased parental participation, and 

effective community-school relations. In-service teacher training will expand with an ongoing emphasis 

on active learning methodologies. Training and materials will continue to be provided to grade one to 

nine teachers, as well as to kindergarten teachers. The first season of Sesame Street programming will 

be broadcast. USAID will continue to strengthen formal and non-formal education opportunities to enable 

youth to develop relevant and practical life and work skills for their future, including instruction in English, 

computers, and civics. Activities to improve education quality for visually-disabled children and promote 
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inclusion in schools and the partnership between the University of Kentucky and three Indonesian 

universities will continue. 

In FY 2007, the USAID program will expand to 72 districts, including in Aceh, to work with 32,400 

education administrators and teachers directly serving 457,500 students in 1,675 public and private 

schools. 

Through at least two public-private alliances in FY 2006 and FY 2007, USAID will mobilize private sector 

resources for education to expand the impact of the USAID program in both target provinces as well as 

more isolated and underserved areas of Indonesia. Information technology tools, such as wireless 

connectivity, will be applied to enhance impact throughout the education program. Dissemination of 

sustainable models and best practices will continue, building the foundation for program sustainability. 

Principal Implementers: Research Triangle Institute, Education Development Center, Save the ChildrenU.S., Sesame Workshop, Helen Keller International, Academy for Educational Development, The Asia 

Foundation, International Relief and Development, University of Massachusetts, Florida State University, 

University of Pittsburgh, and University of Kentucky. 

Transfer to U.S. State Department Programs ($4,000,000 ESF). Funds will be transferred to the State 

Department for additional education activities. 

FY 2006 Program 

SO: 497-019 Higher Quality Basic Human Services Utilized 

Improve Access To Clean Water & Sanitation 

Improve Access to Clean Water and Sanitation ($1,980,000 CSH; $4,364,000 DA). USAID is providing 

technical assistance to water and sanitation utilities and partnering with the private sector to provide 

home chlorination technology to increase access to safe water for low-income families. A total of $1 

million will be transferred to Development Credit Authority (DCA) for a guarantee for water utilities to 

expand service delivery to a greater numbers of poor people. Principal Implementers: Development 

Alternatives Inc. (DAI), Johns Hopkins University (JHU), and CARE International. 

Improve Child Survival, Health & Nutrition 

Improve Child Survival Health and Nutrition ($4,257,000 CSH). USAID is providing technical assistance 

and training to service providers and community members to reduce diarrheal diseases, increase skilled 

personnel at birth, and increase the modern contraceptive rate. Principal Implementers: JHU and John 

Snow International (JSI). 

Improve Maternal Health & Nutrition 

Improve Maternal Health and Nutrition ($3,465,000 CSH; $220,000 CSH Prior Year Unobligated). USAID 

is providing technical assistance to health care providers to reduce maternal, neonatal, and child mortality 

and morbidity. Funds are supporting a DCA guarantee to expand financial loans to midwives to increase 

access and quality of maternal and newborn health services. Principal Implementer: JSI. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($5,445,000 CSH). USAID is providing 

technical assistance and training to expand malaria prevention in eastern Indonesia, supporting and 

expanding the Direct Observed Treatment Short-course for TB in nine priority provinces, and supporting 

polio surveillance and vaccination. The program is also supporting AI prevention by expanding 
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surveillance and funding a communications campaign to increase public awareness of how AI is 

transmitted. Principal Implementers: Academy for Educational Development (AED), World Health 

Organization, JSI, and Royal Netherlands Tuberculosis. 

Protect and Increase Food Security of Vulnerable Populations 

Protect and Increase Food Security of Vulnerable Populations ($990,000 DA; $1,980,000 CSH). USAID is 

providing training to service providers and community members to complement the P.L. 480 Title II 

resources to support maternal-child feeding and food-for-work activities. Principal Implementers: CARE 

International, Mercy Corps International (MCI), Save the Children, and World Vision. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact of HIV/AIDS ($7,920,000 CSH). Through technical assistance to the 

Government of Indonesia and local non-governmental organizations, USAID is scaling up HIV/AIDS 

prevention, care, and support interventions in high-risk populations and increasing HIV/AIDS prevention 

efforts in seven provinces. Principal Implementers: Family Health International (FHI) and Project Concern 

International (PCI). 

Support Family Planning 

Support Family Planning ($2,970,000 CSH). USAID is providing technical assistance to the Ministry of 

Health at the central and district level to ensure quality family planning services in order to improve 

mother and child health. Principal Implementer: JSI. 

FY 2007 Program 

SO: 497-019 Higher Quality Basic Human Services Utilized 

Improve Access To Clean Water & Sanitation 

Improve Access to Clean Water and Sanitation ($2,000,000 CSH; $4,212,000 DA). USAID will expand 

technical assistance and training to 30 local governments and continue to promote integration of health, 

water, and sanitation activities. Principal Implementers: DAI, JHU, and CARE International. 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health and Nutrition ($4,191,000 CSH). USAID will expand assistance from 13 to 

a total of 30 districts. Principal Implementers: JSI and JHU. 

Improve Maternal Health & Nutrition 

Improve Maternal Health and Nutrition ($4,000,000 CSH). Through the continued use of technical 

assistance and training to health care providers, USAID will scale up an integrated package of 

interventions within each project site to expand results. Principal Implementer: JSI. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($5,500,000 CSH). USAID will continue to 

support avian influenza control, malaria control, TB diagnosis, and polio eradication activities. Principal 

Implementer: AED, WHO, JSI, and Royal Netherlands Tuberculosis. 
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Protect and Increase Food Security of Vulnerable Populations 

Protect and Increase Food Security of Vulnerable Populations ($2,000,000 CSH; $1,000,000 DA). 

USAID will expand technical assistance and training to 30 local governments and promote integration of 

health, water, and sanitation activities. Principal Implementers: Save the Children, World Vision, CARE 

International, and MCI. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact of HIV/AIDS ($8,316,000 CSH). USAID will continue to provide 

targeted technical assistance and training to health workers and community members to reduce high-risk 

behavior, expand quality services, and improve surveillance activities. Principal Implementers: FHI and 

PCI. 

Support Family Planning 

Support Family Planning ($1,500,000 CSH). USAID will integrate quality reproductive health services at 

district level sites and ensure availability of contraceptives especially for the poor and most vulnerable. 

Principal Implementer: JSI. 

FY 2006 Program 

SO: 497-020 Effective Democratic and Decentralized Governance 

Mitigate Conflict and Support Peace 

Mitigate Conflict and Support Peace ($3,500,000 ESF; $4,000,000 ESF Prior Year Unobligated). USAID 

is providing technical assistance and training to government officials, the Free Aceh Movement, and civil 

society groups contributing to the advancement of the Aceh peace process, the mitigation of conflict in 

other communities at risk, and increased civilian oversight of the military. Principal Implementers: 

Development Associates, Inc. (DAI). 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($1,422,333 ESF; $175,000 ESF Prior Year Unobligated). USAID 

estimates that 1,262 government officials and members of civil society will benefit from technical 

assistance and training that is raising awareness of the Trafficking In Persons issue in Indonesia. 

USAID's assistance is also aiding victims of trafficking in their efforts to reintegrate into society and pass 

the draft law on anti-trafficking that will protect victims and allow police and prosecutors to prosecute 

criminal traffickers. Principal Implementers: The Asia Foundation (TAF), American Center for 

International Labor Solidarity (ACILS), and International Catholic Migration Commission (ICMC). 

Strengthen Civil Society 

Strengthen Civil Society ($3,467,981 ESF). USAID is providing technical assistance and training that will 

broaden civic education courses at Islamic schools, universities, and education centers; strengthen the 

capacity of the media and advocacy institutions to serve as vehicles for promoting democratization; and 

increase public information and advocacy for human rights, gender equality, and democratization. 

Principal Implementers: TAF, Internews, and ICMC. 
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Strengthen the Justice Sector 

Strengthen the Justice Sector ($5,233,333 ESF). USAID is providing technical assistance and training to 

1,000 judges and staff members at the Supreme Court, the Constitutional Court, the Anti-Corruption 

Commission, and the Attorney General’s Office. This assistance is supporting their efforts to reduce 

corruption and increase the public’s confidence in these institutions. Principal Implementers: Research 

Triangle Institute (RTI), TAF, and others To Be Determined (TBD). 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($7,093,020 ESF). USAID is providing technical 

assistance and training that strengthens the legislative and legal drafting skills of Parliamentarians. This 

program also provides institutional assistance to the National Parliament and select provincial and local 

legislative bodies, benefiting 1,000 Members of Parliament and legislative staff. Principal Implementers: 

National Democratic Institute (NDI), International Foundation for Election Systems (IFES), International 

Republican Institute (IRI), TAF, and RTI. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($14,633,333 ESF). USAID is providing 

technical assistance and training to municipal officials and council members in planning and priority use 

of municipal resources, citizen outreach, local service delivery, and civil service reform in an additional 30 

municipalities for a total of 60. Principal Implementer: RTI. 

Support Populations at Risk 

Support Populations at Risk ($1,000,000 ESF; $5,000,000 ESF Prior Year Unobligated). USAID is 

providing technical assistance and training to government officials and civil society groups contributing to 

the reintegration of those affected by the Aceh conflict and other conflicts. This assistance also includes 

implementation of community based recovery projects, allowing for the return and reintegration of those 

affected by the Tsunami and conflict. Principal Implementers: DAI and International Organization for 

Migration. 

FY 2007 Program 

SO: 497-020 Effective Democratic and Decentralized Governance 

Mitigate Conflict and Support Peace 

Mitigate Conflict and Support Peace ($20,000,000 ESF). USAID will provide technical assistance to 

government officials and civil society groups contributing to the advancement of the Aceh peace process, 

the mitigation of conflict in other communities at risk, and increased civilian oversight of the military. 

Principal Implementers: TBD. 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($386,000 ESF). USAID will provide technical assistance to the Ministry of 

Women's Empowerment, civil society, and religious organizations in their efforts to raise awareness and 

aid victims of trafficking. Principal Implementers: TAF, ACILS, and ICMC. 

Strengthen Civil Society 
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Strengthen Civil Society ($3,700,000 ESF). USAID will provide civic education training through moderate 

Muslim organizations and the media to promote civic dialogue on pluralism and tolerance. Principal 

Implementers: TAF and others TBD. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($1,975,000 ESF). USAID will provide institutional assistance to the 

Supreme Court, the Constitutional Court and the Attorney General’s Office benefiting 500 judges, 

lawyers, and staff members. Principal Implementers: RTI and others TBD. 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($3,464,000 ESF). USAID will provide technical 

assistance that strengthens the legislative and legal drafting skills of Parliamentarians as well as provide 

institutional assistance to the National Parliament and select provincial and local legislative bodies. This 

assistance will benefit approximately 1,000 Members of Parliament and legislative staff. Principal 

Implementers: NDI, IFES, IRI, TAF, and RTI. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($10,475,000 ESF). USAID will continue to 

provide technical assistance and training to municipal officials and council members in additional districts 

throughout Indonesia. Principal Implementer: RTI. 

FY 2006 Program 

SO: 497-021 Economic Growth Strengthened and Employment Created 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($5,081,250 ESF). USAID is providing technical 

assistance to the Ministry of Finance to support financial sector stability, sound debt management, and 

effective fiscal planning. USAID is providing training and information technology (IT) equipment to 

government agencies engaged in the detection and prosecution of corruption and financial crimes. While 

the principal counterpart is the GOI's Financial Intelligence Unit, USAID works with all major anticorruption agencies. USAID is providing technical assistance, training, caseload management advice, 

and IT assistance to the Commercial and Anti-Corruption Courts. USAID is also providing technical and 

advisory assistance to the Ministry of Finance to enhance the effectiveness of its Directorate General 

offices. Principal Implementers: Booz, Allen, and Hamilton and Chemonics. 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($5,656,250 ESF). USAID is delivering technical and commodity 

assistance to establish a half-dozen one-stop service centers to streamline business registration. The 

one-stop service center can reduce new business registration costs and time by two-thirds. USAID is 

training local and regional officials in regulatory impact assessment to curb fast-multiplying local taxes 

and fees that deter domestic trade and business. The program is also working with the GOI to forge a 

national “Competitiveness Strategy” and provide high-caliber financial, production, and marketing 

advisors to firms in key sector clusters. Sector clusters may include furniture, information and 

communications technology, transportation parts, or other possible choices based on a public-private 

dialogue. The program is improving the ability of firms to compete in global markets by strengthening 

operations and management and promoting market access. Principal Implementers: The Asia Foundation 

(TAF) and Development Alternatives, Inc. (DAI). 
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Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($2,481,250 ESF). USAID is delivering production, processing, 

and marketing technical assistance to farmers, wholesalers, retailers, and exporters of high value tropical 

crops in order to drive revenues, trade, and household (farmer/producer) incomes higher. Principal 

Implementers: To Be Determined (TBD). 

Increase Trade and Investment 

Increase Trade and Investment ($4,231,250 ESF). USAID is providing technical assistance in policy, 

legal, and data analysis, coupled with training and commodity support to the Ministry of Trade and to 

other interested Ministries in order to build trade-related analysis capacity. This assistance is improving 

implementation of World Trade Organization, Association of Southeast Asian Nations, multilateral, and 

bilateral trade agreements. Principal Implementer: Chemonics. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector and Increase Access to Capital ($4,500,000 ESF). USAID is 

continuing to train Deposit Insurance Agency staff to manage future bank resolutions and the deposit 

insurance fund. USAID is supporting specialized training and capacity building in selected institutions to 

strengthen the financial sector. Using the Development Credit Authority (DCA), USAID is continuing the 

implementation of a micro and small enterprise credit facility that will disburse up to $16 million in loans. 

Principal Implementers: Bearing Point and Financial Sector Volunteer Corps. 

FY 2007 Program 

SO: 497-021 Economic Growth Strengthened and Employment Created 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($7,896,373 ESF). USAID will provide technical 

assistance to the Ministry of Finance to support financial sector stability, sound debt management, and 

effective fiscal planning. Technical support for the GOI's Financial Intelligence Unit and other key 

agencies combating corruption and financial crime will continue. USAID will provide training and technical 

assistance on such topics as improved investigative/prosecutorial procedures and minor support for 

information technology. USAID will provide technical assistance to the Ministry of Finance to enhance the 

effectiveness of its Directorate General offices. USAID will continue providing technical assistance and 

capacity building to the commercial and anti-corruption courts. Principal Implementers: Booz, Allen, and 

Hamilton and Chemonics. 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($5,816,608 ESF). USAID will provide technical assistance, 

training, marketing expertise, and other activities for the public and private sectors. Six additional onestop service centers will be created to improve business registration. New enterprise or agricultural sector 

clusters will target improved operations, management, and market access. Principal Implementers: TAF 

and DAI. 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($4,712,000 ESF). USAID will refine production-related technical 
14

assistance and expand export marketing of high-value tropical crops (e.g. coffee, cocoa, and vanilla). 

Technical and policy assistance will be introduced to strengthen the value chain for horticultural crop 

production for sale to large domestic consumers. Principal Implementers: TBD. 

Increase Trade and Investment 

Increase Trade and Investment ($4,363,019 ESF). USAID will continue to support trade capacity building 

through ongoing technical and commodity assistance. GOI ministries and agencies will be trained. 

Principal Implementer: Chemonics. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector and Increase Access to Capital ($2,212,000 ESF). USAID will 

expand and enhance credit markets, including possible development of new DCA guarantee facilities. 

USAID will support specialized training and capacity building in selected institutions to strengthen the 

financial sector. Principal Implementers: Bearing Point and Financial Sector Volunteer Corps. 

FY 2006 Program 

SO: 497-022 Maintaining Healthy Ecosystems 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources and Biodiversity Conservation ($6,942,000 DA). 

USAID is providing technical assistance to local governments and relevant agencies such as the 

Ministries of Forestry, Planning, and Environment in order to strengthen their ability to develop and 

implement watershed management. Technical assistance is being provided to communities to promote 

agro-forestry in areas where watersheds are badly degraded due to deforestation. Technical assistance is 

also supporting resolution of community land tenure and access conflicts that provide disincentives for 

community-level reforestation and agro-forestry investments. Principal Implementer: Development 

Alternatives, Inc. (DAI). 

USAID is providing technical assistance for forest conservation practices and training in capacity building 

to develop community nurseries in support of agro-forestry. USAID takes into account the underlying 

issues contributing to loss of habitat and poaching, such as food insecurity and lack of alternative income. 

Recognizing that most activities to date have targeted orangutan habitat areas in Kalimantan, USAID is 

placing particular emphasis on identifying new areas in Sumatra, including Aceh province, where 

conservation efforts could positively impact the survival of viable populations of wild Sumatran 

orangutans. Principal Implementers: The Nature Conservancy, World Education, Orangutan Foundation 

International, Conservation International, and The International Center for Research on Agro-Forestry. 

USAID is continuing to provide technical assistance to the private sector to promote systems for certifying 

the legality of timber and wood products from Kalimantan, Sumatra, and Java. Principal Implementers: 

The Nature Conservancy and World Wildlife Foundation. 

FY 2007 Program 

SO: 497-022 Maintaining Healthy Ecosystems 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources and Biodiversity Conservation ($6,512,000 DA). 

USAID will continue providing technical assistance and training to local governments, relevant agencies, 

and communities to strengthen their ability to develop and implement watershed management. The 

project will expand its watershed management activities to protected areas in 30 watersheds in the 

provinces of Sumatra, Java, and Kalimantan. Principal Implementer: DAI. 
15

USAID will continue to provide technical assistance and training to local communities to conserve 

orangutan habitats through implementation of multi-stakeholder management plans. Underlying issues 

contributing to the loss of orangutans will continue to be addressed, such as food insecurity and lack of 

alternative income. The program will also address new issues related to poaching, regional trafficking, 

and land use policy. 
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Results Framework 

497-007 Democratic Reforms Sustained and Deepened 

Program Title: Democracy Reform 

 7.1: Key National and Local Level Government Institutions Made More Responsive and Effective 

 7.1.1: National Policy Making Processes Made More Responsive and Effective 

 7.1.2: Local Legislatures in Selected Areas Made More Responsive and Effective 

 7.1.3: Political Parties at National Level and in Selected Localities Made More Responsive and Effective 

 7.2: Increased Citizen Participation in Governance 

 7.2.1: Civil Society Organizations' Impact on Policy Making and Implementation Increased 

 7.2.2: Civil Society Organizations' Ability to Increase Citizen Participation in Governance Increased 

 7.2.3: Increase Capacity of the Media to Inform Citizens About Key National and Local Issues 

 7.3: Capacity and Support for Justice Sector Reform Increased 

 7.3.1: Constituencies for Justice Sector Reform Expanded and Strengthened 

 7.3.2: Use of Legal Mechanisms to Redress Abuses of Power Increased 

497-008 Health of Women and Children Improved 

Program Title: Health, Population and Nutrition 

 8.1: Policy Environment for Reproductive and Child Health Improved 

 8.2: Health Service Strengthened to Improve Access, Quality and Sustainability 

 8.3: Women, Families and Communities Empowered to Take Responsibility for Improving Health 

497-009 Impact of Conflicts and Crises Reduced 

Program Title: Crisis Mitigation 

 9.1: Improved Welfare of Populations Affected by Natural or Man-made Disasters 

 9.2: Food Security for Vulnerable Populations Improved 

 9.3: Indigenous Efforts and Capacity to Resolve Conflict and Promote Reconciliation Strengthened 

497-010 Decentralized and Participatory Local Government 

Program Title: Strengthening Local Government 

 10.1: Appropriate Environment Established to Enable Effective Local Government 

 10.2: Local Government Capacity Strengthened to Deliver Effective Services 

 10.3: Participation Increased in Local Government Decision-making 

 10.4: Associations of Local Government and Officials Established as Advocates 

497-011 Foundation Set for Rapid, Sustainable, and Equitable Economic Growth 

Program Title: Promoting Economic Growth 

 11.1: Sound Economic Policy and Institutions 

 11.2: A Conducive Legal and Regulatory Framework 

 11.3: Open Access to Economic Opportunity 

 11.4: Knowledgeable Public Participation in Economic Decision-making 

497-012 Strengthened and Decentralized Natural Resources Management 

Program Title: Natural Resource Management 

 12.1: Roles and Responsibilities of Stakeholders for Natural Resource Decision-making and 

Management Clarified 

 12.2: Capacity of Local Stakeholders to Manage Natural Resource Improved 

 12.3: Broader and More Knowledgeable Public Demand for Sustainable Natural Resource Management 

Formed 
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497-013 Energy Sector Governance Strengthened 

Program Title: Energy Sector Reform 

 13.1: Energy Sector Reform Implemented 

 13.2: Broader and More Knowledgeable Participation in Energy Sector Reform 

 13.3: Environmentally Friendly Investment in Management of the Energy Sector Increased 

497-018 Improved Quality of Decentralized Basic Education 

Program Title: Basic Education 

 18.1: More Effective Decentralized Management and Governance of Schools 

 18.2: Improved Quality of Teaching and Learning 

 18.3: Increased Education Relevance and Workforce Skills for Youth 

497-019 Higher Quality Basic Human Services Utilized 

Program Title: Basic Human Services 

 19.1: Governments, Community Organizations and the Private Sector Mobilized to Advocate for Higher 

Quality Basic Health Services 

 19.2: Basic Human Services Delivered Effectively at the Local Level 

 19.3: Improved Practices and Behaviors Adopted at the Community and Household Levels 

497-020 Effective Democratic and Decentralized Governance 

Program Title: Democratic and Decentralized Governance 

 20.1: Consolidating the Reform Agenda 

 20.2: Expanding Participatory, Effective and Accountable Local Governance 

 20.3: Addressing Conflict and Encouraging Pluralism 

497-021 Economic Growth Strengthened and Employment Created 

Program Title: Economic Growth 

 21.1: Financial Sector Safety and Soundness Improved and Institutions Strengthened 

 21.2: Business Climate Improved for Enterprise Development, Trade and Job Creation 

497-022 Maintaining Healthy Ecosystems 

Program Title: Healthy Ecosystems 

 22.1: Governments, Community Organizations and the Private Sector Mobilized to Advocate for 

Maintaining Healthy Ecosystems 

 22.2: Healthy Ecosystems Are Maintained Effectively at the Local Level 

 22.3: Improved Practices and Behaviors in Maintaining Healthy Ecosystems Adopted at the Community 

Level