Transcript IRIDA_USAID_Presentation

Indonesian Regional Infrastructure
Development Alliance
(IRIDA)
A Multi-Stakeholder Development Initiative
REGIONAL AUTONOMY AND INDONESIA’S DEVELOPMENT CRISIS
Current Situation:
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Centralized management of development failing in decentralization era
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National infrastructure ex-monopolies focus investment on urban areas
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Private sector not investing due to legal uncertainty / lack of financial accountability
Outlook:
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Local Governments continue to enact ill-conceived taxes to fund politically important
projects, further crippling investment prospects / retarding development
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Key social institutions – Schools, Healthcare, SME Cooperatives – are increasingly
disenfranchised as national support decreases and isolation sets in
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Urban / rural gap grows exponentially, creating political and economic instability
Order from Chaos?
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Under regional autonomy law, a vehicle exists that could enable Local Government and
key social institutions to own local infrastructure, generate sustainable capacity building
funds, and encourage private sector investment via a financially transparent entity: a
publicly owned regional corporation, or BUMD.
Actions to Avert an Infrastructure Crisis in Indonesia
The World Bank, Jakarta, December 2, 2003
The Context:
> Indonesia lags behind the region in almost all infrastructure sectors.
> Infrastructure is critical for Indonesia’s growth and poverty reduction.
> Public planning and management of infrastructure is inadequate.
> The institutional and regulatory framework is simply not conducive to private participation in infrastructure
Findings:
Decentralization presents enormous opportunities for improved infrastructure provision, but, unmanaged,
these opportunities remain liabilities.
For
networked infrastructure there are compelling arguments for empowering
stronger coordinating role vis-à-vis kabupaten and municipalities.
Investment
the provinces to play a much
in capacity building for infrastructure management at the local level is essential.
“The stakes are now high. Indonesia’s failing infrastructure is already undermining growth prospects, and making it
very hard to achieve its national goals for poverty reduction. With Indonesia’s macro-economy now in sound shape,
it is time to move more boldly in addressing longer term infrastructure needs.”
Andrew Steer, World Bank Country Director for Indonesia
WHAT IS IRIDA?
IRIDA is a PUBLIC SECTOR / PRIVATE SECTOR INIATIVE designed to create a sustainable model for
deploying community owned infrastructure at the regional level.
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IRIDA establishes a legal and financial framework under current regional autonomy law, to enable key public institutions
responsible for development – Schools, Government, Healthcare, and SME Cooperatives - to own local infrastructure, via
community owned corporations, or BUMD.
To insure sustainability and sound business operations, the BUMD charter requires contract management of day to day
commercial operations by private sector partners, who supply personnel, technical and financial management to operate
the various infrastructures on a commercial basis.
Profits from commercial operations are shared between the management contractor and the BUMD, and then proportionally
within the local BUMD stakeholder group, creating a sustainable funding structure enabling local investment in developing
institutional capacity and human resources.
IRIDA provides a legally accountable and financially transparent vehicle for obtaining funding for infrastructure development
from a variety of sources, including public and private, local and international financial institutions.
IRIDA’s initial target is the deployment of Information and Communication networks, a key enabling infrastructure that
allows:
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coordination of development efforts between the national and local levels
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human resources capacity building, e-Government, e-Learning, Telemedicine, SME programs
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improved information handling and reporting, efficiencies and cost savings available via IP communications
Subsequent IRIDA phases deploy additional infrastructure according to local need, including power generation, water
treatment and sanitation, etc.
BUMD STRUCTURE
IRIDA AS A KEY TO DRIVING RURAL DEVELOPMENT
“A process that gives rural communities some ownership of
infrastructure facilities provided has been shown to have
a high potential for success.”
Mainstreaming Poverty Alleviation Strategies through Sustainable Rural
Infrastructure Development - BAPPENAS / KIMPRASWIL
IRIDA PHASE ONE: ICT INFRASTRUCTURE
ICT infrastructure, built on existing fiber optic and satellite networks with low-cost
broadband wireless last mile technology, is the necessary “enabling infrastructure”
to spur community-wide development.
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ICT networks will enable the coordination of national to local institutional capacity building
programs, and increase transparency and accountability.
ICT networks create significant cost savings, allow more efficient allocation of human
resources, and allow for effective, coordinated training programs.
ICT networks vastly improve the delivery of institutional services at the local level.
ICT networks improve reporting by local institutions and improve the flow of data from the
local to the national level, resulting in more informed decision making.
ICT networks allow access to markets for SME and enable consolidation of supply and delivery
systems, improving local economies and creating jobs.
ICT networks allow increased citizen access to information, education and participation in the
local decision making process.
IRIDA IN THE CONTEXT OF INDONESIA’S IT STRATEGY
SISFONAS
Goal - Integrate all government information systems at the central and district institution level
Problem – Lack of a complete network infrastructure solely for government use
Solution - Create a web enabled system to link government agencies through existing ISPs
INPRES 3, 2003 – (Presidential Decree on E- Government)
Mandates business process re-engineering and e-government to increase operational efficiencies.
The National Information Technology Framework - BAPPENAS
Guides the coordination of Information Technology planning, development and utilization.
“Five- year Action Plan For the Development and Implementation of Information and
Communication Technologies (ICT) in Indonesia”
(TKTI Infrastructure Working Group Guidelines)
Develop innovative methods to provide infrastructure that will assist in reducing the “digital divide”.
Ensure that the government can readily make use of developing private communications networks in promoting its service
delivery infrastructure.
Promote opportunities and develop infrastructure proposals that will enable government information and services to be made
more widely available, including integration of information and services from different ministries and use of Regional and
Local Government infrastructure in delivering information and services.
WHO SUPPORTS IRIDA’S FIRST PHASE?
Private Sector
Public Corp
Social Sector
Ministries
Ernst & Young
PLN
LPMI
KOMINFO + BAPPENAS
(legal & financial)
(fiber optic network)
(SME support, Madrasah
education)
(Services & Infrastructure)
KampungCyber
IPTEKnet
CLGI
Home Affairs
(broadband wireless IP /
local network mgmt)
(secure gov’t network and
data services)
(local governance)
(E-Government)
Optima
Inti
KPI
Education + Religion
(information mgmt systems)
(telecom and television
infrastructure)
(women SME owners)
(Schools)
Agritani/E-ASEAN
UPI - UII – UMM
APKASI
(training/SME support)
(teacher training and
distance learning)
(Kabupaten government)
Cooperatives and SME +
Womens Empowerment
(SME)
JDI
APEKSI
Health + BKKBN
(content development)
(Kotamadya government)
(Hospitals/Clinics, Family
Planning)
UTILIZING THE ENABLING INFRASTRUCTURE:
NATIONAL/DONOR COORDINATION
DEPLOYING THE ENABLING INFRASTRUCTURE
PHASE 1
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Create BUMD Legal and Financial Structure
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Build National Stakeholder Support and Commitments
PHASE 2
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Socialize Program / Sign Charter Agreements and Register BUMDs
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Procure and Deploy Infrastructure
PHASE 3
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Commence Commercial Operations
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Coordinate Delivery of Content and Program Support
PHASE 4
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Conduct Impact Studies and Refine Support Program
HOW CAN USAID HELP?
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Providing initial funding to create a local infrastructure development corporation
(BUMD) legal and financial structure.
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Provide equity funding to stakeholder groups (SME, Edu, Gov, Health) to enable local
ownership of infrastructure.
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Provide expert human resources to constituent communities (SME, Edu, Gov, Health)
to develop ICT plans, review business processes, and develop capacity.
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Provide support to IRIDA consortium members to develop curriculum preparing
young Indonesians to work in the ICT sector and with ICT in other business sectors.
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Work with US ICT companies to provide support and in-kind donations.
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Coordinate with other donor agencies (WB, ADB, etc.)
FUNDING REQUEST
From DFI:
Estimated costs to create legal and
financial framework, and coordinate
stakeholder support: +/-US$200,000
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Work would be performed by Ernst &
Young with input from existing
government / donor programs focused on
regional autonomy legal issues and policy
reform.
After legal / financial framework has been
created, financial support for widespread
rollout can be obtained from USAID
Education/Basic Services/Local
Governance funds, private infrastructure
funds, multilateral and local banks.
From Education, Basic Services and
Local Governance Funds:
Provision of grant funds to give local
schools, government, healthcare and
SME equity ownership in community
infrastructure BUMDs: +/-US$4,000,000
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Funding would enable deployment of first
phase ICT infrastructure, and e-Gov,
Education and Health Care Information
Management Systems in 40 locations
throughout Java and Bali, served by PLN
fiber optic network, under management of
KampungCyber.
Additional funding could be provided to
establish PDAMs (local water utilities) or
strengthen existing ones.
Results of USAID Support for IRIDA
Education
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More Effective Local Management of Schools
Increased Community Ownership and Participation in Education
Improved Teacher Training
Improved Quality of Basic Education
Improved Workforce Skills for Youth
Local Governance
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Improved Delivery of Local Government Services
Improved Transparency and Accountability of Local Government
Increased Citizen Participation in Development Planning
Economic Development
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Improved Basic Human Services Delivery at Local Level
Increased Certainty in Business and Investment Environment
Improved Investment in Public Services Supporting Private Economic Activity
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Martin Crow, President Director
PT Kampungcyber.com
Tel: 0818637529
Email: [email protected]
David Rimbo Lim
Principal, Ernst & Young
Tel: 02152895025
Email: [email protected]