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MINUTES OF MEETING

SOUTH-SOUTH COOPERATION (SSC) WORKSHOP

Place : Mandarin Hotel, Jakarta

Date : February 4th, 2011

Time : 10.00 AM -05.00 PM

Minutes:

• The meeting was chaired by Mr. Dewo Broto Joko Putranto (Director of Multilateral Foreign

Financing, BAPPENAS).

• On the opening speech for the meeting, Mr. Dewo refreshed the results of workshop in Bandung on

14th January 2011.

• Mr. Adik explained the 2nd

draft of his paper, which prepared based on the recommendations from

Bandung’s workshop. It was basically agreed to prepare the 2 outputs: Background Paper as the

output of the Basic Study financed by JICA and the Grand Design as the output of the GoI.

Basically he has prepared the background paper based on the inputs of the Technical Team

especially Mr. Otto and Ms. Siliwati from BAPPENAS. However, since there were differences in

writing background paper and the Grand Design, then the vision and mission as agreed in

Bandung’s workshop were not included in the Background Paper but shall be included in the Grand

Design. The paper focuses on technical cooperation rather than the economic cooperation. Now he

is focusing in preparing the Background Paper.

• Mr. Thalib from KADIN expressed that basically the economic cooperation is quite important at

this decade, it might be in the Form G2G or B2B. It is also strengthened with the position of

Indonesia in G-20., which requires Indonesia to think and act globally.

• Ms. Theodora from BKKBN recommended to include the vision and missions as agreed in

Bandung in the Background Paper. The Background Paper shall be provided more complete to

strengthen the Grand Design. The prioritization as stipulated in page 20 of the 2nd

Draft should be

clearly specified the clear output to be reached of each program. And it is important to specify the

legal base and coordination mechanism in the institutional framework.

• Mr. Darianto from Technical Cooperation Directorate of Ministry of Foreign Affairs (MOFA)

expected that the Grand Design is a metamorphosis of the Background Paper. Therefore, it should

be more comprehensive to be used as the reference for the Technical Team in the implementation

stage later on. In regard to the PPP, MOFA has started to assign the staff to handle PPP project to

be in line with the latest requirements to be focused on partnership concept, to expand the

networking with NGO or private sectors. Related to the focus on Technical Cooperation, he agreed

with Mr. Adik that Technical Cooperation shall be followed by the Economic Cooperation. Since

he has logical think that the poor shall not be so easy to cooperate. Then to cope with the poor,

technical cooperation shall be done first. For that purpose, for example now MOFA together with

Setneg with the coordination with Ministry of Public Works cooperated to support Timor Leste in

developing road in the border areas which aims will accelerate the movement of goods from

Indonesia that affected to the economics of Indonesia especially NTB Province. And related to the

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establishment of “National Focal Point”, MOFA is decided to invite Mr. Adik to discuss about it.

And it is also related to “East Looking Policy” to embrace the small countries in east areas.

• Related to identification of the flagship programs, there will be a lot of potency, but it necessary to

establish the criteria first to screening those flagship programs, such as: most offered programs

(intensity), issues those in line to the MDGs, needs of the beneficiary countries, who is the

competitor and what is the advantage of Indonesia compared to other competitor, or whether those

what has been done was appreciated by the developing countries, etc.

• Mr. Thalib from KADIN informed that currently the roles of Indonesia has been changed, therefore

the vision and missions also has to be changed in line with the shift of roles. The poor countries

require economic cooperation rather than technical cooperation nowadays. In term of technical

cooperation, Indonesia requires to further think about the institutional which aims to build an

understanding and mutual beneficial, which directed to the economic and technical cooperation,

building the capacity, etc. By participating global forum, strengthening regional custom regulations,

quarantine, trade investment dialogue can be done to encourage ECDC as well as to strengthen

cooperation. Lesson learned from past TCDC, many Asia and African countries now more

developed in some sector, since Indonesia opened all information during the technical cooperation.

So many threat were done to obtain Indonesian technology through the technical cooperation. Many

requests to the associations that many African countries request to learn how to build the rubber

factory, solar plant and IT. For example South Africa is willing to buy solar radiation from

Indonesia to cope their insufficiency in electricity supply. As the competitors, China and India are

moving forward and intensively entering African countries. Especially for micro finance, the Nobel

Price awarded for the Syariah based Finance which was modified from Indonesian Syariah

Financing system.

• Mr. Iwan from Ministry of Education asked whether the PPP legal base for strengthening the

private participation has been established or not? And it is necessary also to strengthen how the

relation between the triangular cooperation and the grant recording mechanism.

• Ms. Agustin (BAPPENAS) informed that related to the aid effectiveness there were 2 period:

before and after Paris Declaration in 2005, which is nationalized into the Jakarta Commitment in

2009. There was a forum in Bangkok, but it is not to cope with technical cooperation nor economic

cooperation, but more to the aid effectiveness. SSC is become intensively since it is written in the

road map. There will be a lot of things can be used for references before the Jakarta Commitment,

i.e. Trust Fund which was an advantage, the principle of partnership and ownership moreover since

Indonesia become the middle income country, shifting from beneficiary country into donor country.

How technical cooperation shifting into development cooperation and perhaps dev. Cooperation

become economic development, to achieve the vision “Better Partnership for Prosperities”. It is

also important to notice that not all of Indonesian technology shall be shared to the beneficiary

countries.

• Mr. Tholib informed that for knowledge sharing is very important value. Even, the develop

countries have never shared all of their knowledge to the developing countries. In G-20,

knowledge sharing is one of its pillars, which is implemented through development cooperation. It

is necessary to discuss about the need of knowledge sharing in SSC. In regard to the institutional, it

is better to dream about the great one. If there will be a National Focal Point, it should be connected

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to the International Institution. It is difficult to talk about cooperation if there is no relationship and

initiative. It is important to initiative Indonesia as a Leader. And hence there will be Council of

Minister (COM) at International level, and Senior Official Committee (CSO) at national level to

facilitate the private sectors.

• Mr. Dewo informed that now Indonesia as the Leader of ASEAN, Chairman of Task Team of SSC,

member of G-20, etc. Then the management in the national level is required to support the

achievement.

• Mr. Adik informed basically all of input shall be accommodated in the Background Paper. However,

it is necessary to make a commitment on the focus whether on technical or economic cooperation,

or shall be both? And related to the flagship program, what is the flagship program for the

economic cooperation?

• Input from Mr. Dewo:

- It is expected that all of the inputs and recommendations shall be accommodated in the

Background Paper.

- There is a repetition on the background, should be deleted.

- In regard to the strategic condition, it shall include the review on GDP, export value, and also

review of Standard Charter and ADB that Indonesia shall be no. 5 in the world on its

economics in 2030 or 2050. Then, it shall also include that south-south trade shall contribute to

the global GDP.

- In Global Issue, shall include SSC issue and position of Indonesia especially in G-20, and about

knowledge sharing for SSC, tandem with Australia for social protection, as the Leader of

ASEAN and for multilateral the role of ADB, World Bank in global cooperation shall also be

explained. RPJMN and foreign politics strategic plan as the reference.

- Vision and mission shall be included in the Grand Design and Blueprint. The needs to develop

the networking as explained by Mr. Thalib shall be strengthening factor to establish the national

focal point.

- The blueprint shall be brief, strict to the point.

- For the flagship program requires info from related Ministries/Institution, and the criteria

should be established. It requires to explain more details on Economic Cooperation, based on

the direction of Steering Committee how the Technical cooperation can boost Economic

Cooperation or how both of them being done in parallel to obtain best benefits from SSC.

- As for MONEV, the policy framework shall be more detailed explained.

- In general, shall reflect the outputs of workshop in Bandung.

• Mr. Adik then explained about the inputs and recommendations from Ms. Siliwati and Mr. Otto has

been accommodated. For Volunteer has been accommodated in Chapter IV. The input on center of

excellent is very good. The access of information has been accommodated by developing the

database within this contract. As for MONEV, the criteria are necessary to be designed. The

recommendation to include the balance score card is difficult since it requires related expert. Triple

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helix if necessary shall be included again in the Background Paper. The Government Work Plan

(RKP) has been accommodated in Chapter V. Financial Resources.

• Ms. Siliwati explained that basically that the paper has been done as expected, only requires editing

and final decision to include or not include some ideas. Triple helix shall be included.

• Mr. Otto commented on the purpose of Grand Design to boost the coordination. Is it correct? Then,

it shall be formulated.

• Finally Mr. Dewo concluded that the 2nd

Draft shall be revised based on the inputs from this

workshop. Since it will be difficult to complete the 2 documents as the output, Mr. Dewo requested

to focus on the completion of Grand Design. The next meeting with Kadin, Ministry of Trade,

Ministry of Industry, Ministry of Finance and MOFA shall be done on 17 Feb 2011 to be focus on

economic cooperation, financing and definition of “region/kawasan”. Then it will be followed by

Steering committee meeting on 21st Feb 2011.

• At the last session, Mr. Mesnan as System Analyst explained about flowchart of SSC information

system as shown in Attachment 1 and showed the position of database in the prototype of database

developed by CEACoS.

• Mr. Dewo explained that basically the Information System is related to the policy decision making,

which aims to direct to the efefctive future planning. PT. Indokoei is expected to input the data

from related Ministries and Institution (K/L) and if required shall be facilitated by letter to visit the

K/L. The Indonesian SSC is expected to be launched at National Workshop at the end of March

2011.

• Mr. Fachrurozi from Setneg expressed basically it has been comprehensive enough, but he

suggested that to fulfill the need of foreign users, the information system should be built in 2

languages: Indonesian and English. It is also requires to add sub menu “partner” not limited to

existing 5 partners in the flowchart. The covered area shall be extended to East Europe. It is also

requires to add menu of “Current SSC Issues”.

• Mr. Theodora asked whether there will be a new website of Indonesia SSC and it requires to

establish the English version of the system information to accommodate the need of promotion to

foreign countries. It is also necessary to think about the administrator and to update all information

later on. If the data is not updated periodically, then it will be less usefull.

• Mr. Iwan asked about the layer of user and recommend the report in pdf format.

• Mr. Dewo explained that temporary the Indonesia SSC IS shall be attached to BAPPENAS website.

If later it will decide to use special domain, BAPPENAS shall make the arrangement for it.

• Ms. Uzaimah explained that basically the Consultant worked based on the prototype designed by

CEACoS and therefore the language used is “bahasa”. To make the 2 version of database, it means

that we have to make 2 website. Since the period of contract is only up to end of March 2011, it is

difficult to make it into 2 languages. If it is agreed in English, then there will some words which has

been created by CEACoS such as the title “Kerjasama Selatan Selatan” shall be remained in

“bahasa”. And the data input from the K/L shall be done at maximum the data which are collected

up to the end of March 2011.

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• Mr. Darianto corrected that ASEAN was the name of an organization not the name of an area so it

should be South East Asian, and ASEAN shall be included as one of partner in SSC.

• Ms. Siliwanti said that it is requires to define who shall be the users of the system. If for the

planning, the output of the information system should provide answers for future planning program.

The information needed are the name of activity, time of activity, place, and budget, and it will

need not so complex information. But, if for promotion, then it will be different.

• Mr. Adik informed that for SSC we should use UN classification regarding South-South Countries

and it was necessary to be known that the consultant build the one part of website built by

CEACOS, and the current issues updating shall be the task of the administrator.

• Finally it was agreed that the Consultant shall provide the database in English version although

some words created by CEACoS shall be remained. The Consultant also should make the manual

instruction of the new information system.

• Ms. Agustin recommend to add menu “annual calendar” should be added to inform the

program/activities which will be conducted by ministry/institution.

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A4.4-1

MINUTES OF MEETING

TECHNICAL TEAM MEETING

Place : Nikko Hotel, Jakarta

Time : 10.00-17.00 WIB

Date : February 16th, 2011

Minutes:

• The meeting was divided into 2 sessions, first session was discussing about economic

cooperation and second session was discussing about financing scheme.

• The meeting was chaired by Mr. Dewo Broto Joko Putranto (Director of Multilateral

Foreign Financing, Bappenas).

• On the opening speech for the meeting, Mr. Dewo brief about the progress of SSC and

activities which have been done since some of the participants such from BKPM, LPEI

and Ministry of Industry are new and related to the development of grand design and

Indonesia SSC Information System which is supported by JICA that experienced in

handling SSC; principle and policy direction of the implementation of Indonesian SSC.

The presentation materials of Mr. Dewo as shown in the Attachment of minutes.

• Then, Mr. Adik explained his presentation (see Attachment) on the preparation of Grand

Design especially on the economic cooperation.

• During the discussion session, Mr. Djunari from Ministry of Trade (MOT) commented

that basically he appreciated to the formulation of the grand design. The Indonesian

economic cooperation basically still focus on the free trade, and currently Indonesia is

facing the issue on restriction of export the CPO. Indonesia has regionally jointed with

Malaysia to counter the negative impact resulted by the campaign of the Uni-European

countries on the ecology issue that the raw material for bio-fuel (CPO) may not be

produced by planting them as the replacement of the tropical forestry area. And to counter

the low price of rubber, Indonesia jointly with Malaysia and Thailand, by using the

International Commerce rule to stabilize the price. Other cooperation such as pepper and

coconut cooperation are also established by Asia-Pacific countries, mostly on commodity

based cooperation. The financing scheme for those activities basically by State Budget

(APBN) and sometimes sponsored by the association. All of those proposals usually came

from Indonesia.

• Mr. Thalib from KADIN strengthened the discussion on economic cooperation by

explaining his experienced as the Vice Chairman of the Committee for Africa KADIN

and G-15 (see attachment 3). Indonesia has conducting many activities with Southern

countries such as in Gambia joint activities with FAO, The Farmer Agriculture Rural

Training in Madagaskar and assistance in Tanzania since 1982, cooperation in ago

business and sugar in FIJI, SME program for livestock, cooperation in agricultural sector

with Australia and Dutch, in tropical oil and vegetable fruits with Malaysia, in trade,

industry and tourism with Egypt, etc. Related to the position of Indonesia in Indian-Ocean

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Rim Cooperation (EIOR ARC), Indonesia has to conduct market diversification and

export development. In this stance, Indonesia also has to anticipate and develop further

about banking management and also related to Free Trade Area (FTA). It is also

necessary to strengthen about legal certainty on business in Indonesia. KADIN will

facilitate young entrepreneurs from Zimbabwe who willing to know more details about

development of textile, furniture, communications, etc. in Indonesia.

• Some Indonesian companies have been success entering the African countries such as

Indofood, Indorama, Tjiwi-Kimia, Medco, etc. Indonesia also has signed the MoU with

SASOL, a synthetic fuel producer from South Africa at the end of 2009 and also for coal

mining. A cooperation in agriculture sector has also being implemented by Gadjah Mada

University with the University of Namibia.

• The issue facing by Indonesia with those Asia Pacific countries is the limitation on

introducing the product, distance to the destination country, transportation, image, etc.

• Ms. Natalia from BKPM informed that basically currently the Government Policy is still

“in ward looking” has not being changed into “looking forward”. There is no legal based

on investment so far. The Directorate is trying to make the database on Indonesian

investment in foreign countries. Several MoU have been signed with India as one of the

aggressive countries, but still through “in ward looking”. There is no institution that has

the accurate record on the investment has been done by Indonesian Investor abroad, even

Central Bank of Indonesia (BI) is only recording the traffic of the foreign exchange, but

for what those exchanges will or have been done, BI has no such information. The

effective way to invest in the foreign countries is by conducting promotion while finding

the market potency in each country.

• Ms. Dyah from Ministry of Industry (MoI) informed that for SSC, MoI has implemented

the cooperation with Mozambique in the form of training on agro-industry and textile. A

cooperation with Palestine has been implemented since last year and a cooperation with

fertilizer plant to construct the fertilizer plant in Teheran in cooperation with PUSRI has

being implemented, since Iran has the highest gas reserve in the world. The President’s

visit on January 2010 in India resulted MoU to cooperate with India in fertilizer, gas and

coal mining.

• Mr. Medi from MoI added that cooperation with Palestine has been started from last year

for welding. Last year 12 persons and this year 10 persons shall participate in the training.

The problem with this training is due to difficulties for Palestine people to go out from

their country. In regard to technical and economic cooperation, he agreed that basically

the technical cooperation is a part of economic cooperation. For regional cooperation

such as ASEAN, the partnership program such as tariff compensation is applied.

Cooperation with Korea basically can cover 18 sectors, however, Indonesian side cannot

maximally utilize this opportunity and hence those opportunities are being utilized by

other ASEAN partners.

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• Cooperation with Mozambique which is initiated based on the interests on Indonesia’s

cotton product. Mozambique is the gate for many of African countries. With its potency

in cotton and Mozambique are interested to conduct import and export of cotton with

Indonesia with zero tariffs.

• D-8’s 4th

meeting in Bali has resulted 11 sectors of cooperation. Iran proposed to conduct

“ joint investment” to implement the technical cooperation among the D-8 countries.

• Mr. Dewo reminded to be careful to provide training for African countries, if necessary

franchising on specific field shall be offered. Perhaps Islamic Development bank can

facilitate in fertilizer field. In the economic cooperation, Government of Indonesia can

coordinate the cooperation, while the implementation shall be done by private sectors.

• The participant from LPPI (EXIM BANK) informed that there are some Southern

countries are categorized as high risk countries. Therefore, many Banks are refusing to

conduct financing to those countries. For instance, LC from Iran is still avoided. It can be

a consideration in conducting cooperation with those countries or how to solve those

problems. It is necessary to involve Bank of Indonesia as the regulator.

• Mr. Rendra (Directorate of Sosbud ONB – Ministry of Foreign Affairs) informed that on

Feb 10-12, 2011, MOFA has implementing a meeting on the economic cooperation

among the developing countries, attended by concerned institutions, and Mr. Adik is

invited as the resource person. And it is agreed that Directorate of PPIH and PELH shall

lead for the economic cooperation issue. Some inputs have been delivered to Mr. Adik on

this issue.

• Directorate Africa of MOFA has special budget for initiative program for Africa 2011

and has informed it to the related stakeholders. The market access to African countries

which has the big market such as Nigeria is quite challenging for Indonesia, but

admission charge to enter Nigeria is quite big around 40%. Currently 10 investors who

export their product through Benin and forwarded from Benin to its neighboring countries

including Nigeria.

• There is no institution which has sufficient data on export and investment opportunity. In

regard to coordination with private sectors, GoI has been acted as the facilitators in order

the private sectors may enter to the global market. However, some private companies

rejected to provide required information to GoI, such the company who interests to

entering West Africa countries, especially related to CPO.

• Mr. Dewo advised to utilize the existing forum and institutions to collect the information

from private sector, however GoI cannot force the private sector to share their

information.

• Mr. Thalib informed that GSTP can be utilized. GoI through Directorate of Legal

Protection can assist the SME to make the contract. It is the time that GoI facilitating the

private sectors especially on the legal protection for the SME. If necessary, the regional

association can be used for self protection.

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• Ms. Dinur (JICA) explained that JICA response positively to the GoI’s initiative related

to the Indonesian International Cooperation modality. At first, basic of ODA cooperation

of JAPAN is also economic cooperation, however now currently Japan is focusing on

technical cooperation. JICA acts as the facilitator to improve the Indonesian strategy and

policy. Indonesian cooperation still has to be based on the global principle such as

solidarity, trust, sincere, appreciation, acceptability and self reliance, same as when

Indonesia as the beneficiary country. Indonesia has to be careful on the economic

cooperation, since for those developing countries, it has to be started from the good

attitude, slowly but sustainable. Second, the consensus between KADIN and related

institutions should be establish carefully and accepted by the whole institutions. Even, at

initially the ODA is also fragmented, some in MOFA, METI, Environment Board, MOA,

etc. All of the related institutions have to same perception and have to have specific

pattern to bring the Indonesian flag in foreign countries. Third, there should be a unique

or specific colour of Indonesian cooperation to be accepted in global market. There are

some accesses that have been established, such as G15, G0-20, etc. Therefore, the

cooperation must not be implemented by a single institution only. Fourth, Government of

Japan also coordinates the public and private sectors. So, there are government flow,

semi government flow and private flow. Japan has the ODA Task Force in Embassy,

country by country. Indonesia FDI also has to be promoted, whether EXIM Bank can

provide loan to other developing countries, such as when Indonesia develop Nickel or

Krakatau Steel Plants financed by Japan’s Exim Bank. The fifth: In service sector, JICA

Indonesia provides road development training in cooperation with Ministry of Public

Works to assist Timor Leste. Technical cooperation can flow at any stage and can be

flexible to enter the economic cooperation. For instance, the Micro Finance program for

African countries is facing the bottle neck, Indonesia has not been ready yet to further

support the program. If it is not being followed up by GoI, Malaysia will enter in this

sector. It can be the competitive advantage for Indonesia in the future. Basically this

forum is moving forward faster than expected by JICA. Therefore, it is expected that

Indonesia will be trusted by develop countries. Building a trust can be done through

triangular cooperation. North countries will not make cooperation without any trust,

therefore, it can be advantage for Indonesia to develop trust through triangular

cooperation, as the complementary of North South and South-South Cooperation.

• LPPI informed that basically that Bank is allowed to finance resident or Liability

Company in foreign countries. For example, project with WIKA India and railway in

Bangladesh. Basically if the project is viable, may be financed.

• Session II started at 2 PM and opened and chaired by Mr. Dewo Broto as the Chairman of

Technical Team, repeated his morning presentation and then followed by presentation on

Financing, Scheme and Flagship Program as shown in the Attachment 4.

• Mr. Andy from Ministry of Agriculture (MOA) informed that in previous meeting he

informed that MOA will allocate the assistance in the form of dispatching expert and

training under SSC in 2011 but it seems not approved by MOF. The problem in SSC is

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usually unclear. For hand tractor assistance, always on and off. Related to the flagship

program, it is the program which is sellable by MOA.

• Mr. Dewo explained that if the budget is not approved by MOF, it should be checked

what is the reason behind it. It is necessary to apply performance based budget right now.

Currently BAPPENAS is preparing the RKP 2012, and expected to be completed by

March 2011. So, now is a good timing to propose KSS related program. For foreign

funding program, JICA has given a green light for triangular cooperation such for micro

finance program. For private sector, perhaps it can be jointly conducted under CSR

program as a part of promotion tools for private sectors.

• Mr. Fachrul Rozi (Setneg) informed that usually MOF will request the evident, and will

consider the task and function of the authority to propose such program. All proposed

program by Ministry/Institutions related to SSC programs should be complied in one

basket, since the activity for SSC requires a lot of budget and hence will be a burden to

the Ministry/Institution. When a ministry propose budget plan to Ministry of Finance, it

should be included in RKP. The problem that always faced by the implementing agency

is due to some anticipated program should be done in the middle of FY and hence need

the revision of APBN. Sometimes, the moment to revise it is not matching with the

process period of APBNP. General budgeting management usually customizes, and hence

it is necessary to create the specific financing mechanism for SSC. In regard to the

flagship program, it is necessary to set the criteria or indicator and each

ministry/institution shall make their own list on flagship programs, and for the quick win

shall be evaluated and decided by Steering Committee.

• Mr. Ade (Bappenas) informed that basically the SSC related budget in APBN is only

around 18%. Therefore, the regional forums and develop countries are expected to jointly

financing Indonesia’s SSC activities. The existing regulations regulate only the role of

Indonesia as the beneficiary country, and not as donor country. As it has been stipulated

in the RPJM, then it is important to formulate the new regulation to facilitate role of

Indonesia as donor country.

• Ms. Zurlaini, Bureau of Planning of Ministry of Industry explained that the role of

Indonesia as the donor in SSC is the new challenges, since basically it is not easy to be

accountable in implementing cooperation. Related to budgeting, it is necessary to provide

its legal base. And it should be clear between the social or technical assistance. If

financing by APBN is difficult, it may be financed by business (private), by facilitating

the potential product to the south-south countries. For instance, in rattan industry, GoI

must provide facilitation to increase the export to the south-south countries. It is

recommended that BAPPENAS or MOF coordinate the SSC program.

• Mr. Dewo explained that basically the legal basis, quick win and institutional framework

is required to be accountable to be financed by APBN. In regard to financing, it is also

recommended to involve Exim Bank. The role of Coordination Team is during the

transition period.

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• Mr. M. Thohir (Ministry of Social): He proposed TCTP for Vocational Program in Feb

2010 for the implementation period of 2011 through Setneg and Bappenas. But up to

present, no information whether the proposal agreed by JICA or not.

• Ms. Dinur (JICA): The proposal of NVRC in Cibinong is not passing the screening. JICA

has the following step for each program: grant project, technical cooperation, exit project.

For NVRC, since it has been more than 10 years (2 terms), shall be exit. Usually only one

term unless there is special condition. It is different with EEPIS (polytechnic) in

Surabaya can be extended up to 3 terms due to special requests from those beneficiary

countries. Usually JICA program is linked to the similar program of JICA branch office

in the beneficiary countries. JICA budget to Indonesia is tended to decrease, and mostly

allocated to African countries. And hence the program is linked to the related sector in the

beneficiary country. Triangular Cooperation of Indonesia with JICA shall refer to the

bluebook, although it is difficult since the advantage of SSC program is not only for

Indonesia. Currently, the program is attached to the program in Setneg. From JICA side,

as the requirement of code of conduct of JICA, there should be the strong willingness

from Indonesia and blended between the activities which financed by Triangular

Cooperation and only by Indonesia itself.

• Mr. Dewo: The planning of SSC should be made holistically. Quick win is the SSC

saleable activity with its comparative advantages which viable to be financed by Donor,

may be in term of value added or flagship activities. For instance, artificial insemination,

which is really mastering by Indonesia and can be adopted by south-south cooperation.

The new proposed activity shall be listed in the white-book.

• Mr. Adik Bantarso: Anything to be proposed for the south-south countries should be

something that might be reminded in 100 years. We are now preparing the plans to be

done by 2014 to be taken off in 2015. The flagship program shall be clear in which

context. We have facilities as the centers of excellent, but how to revitalize them. The

flagship programs in economic cooperation mostly are the product based, not program

based. At this moment RKP has to be completed by March 2011, which means we have

remaining less than 2 months to have the consensus.

• For the flagship program, MOA has developed training program in Tanzania financed by

the Farmers association and followed by training program financed by JICA. In the

training, perhaps we can promote the Indonesian farm machinery and equipment such as

hand tractor.

• Ms. Zurlaini: In proposing program for the beneficiary countries, it is better to make an

inventory on the needs of the beneficiary countries.

• Mr. Rendra: There was an activity related to the inventory of the needs of the south-south

countries in MOFA, but has not been compiled yet.

• Mr. Fahrur Rozi: There is an issue related to the recording of grant accounting, related to

the disbursement of budget directly to the implementing agency. In fact, it is not correct

according to the MOF. Any grant has to be recorded. The procedure has to be clear. In

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regard to the proposal from Ministry of Social is still necessary for Palestine and

regarding center in Tanzania is nor function due to budget availability.

• Ms. Theodora (BKKBN) stated that for financing mechanism, BKKBN may allocate

facilitating budget based on 4 flagship programs in BKKBN and for south-south countries.

However, since there is no clear legal based, it is difficult to maintain such budget. TCTP

program financed by JICA has been terminated since last year. The demand is still high,

but it is difficult to find the donor. Today, there is a letter from OENB MOFA requested

BKKBN to prepare proposal to be addressed to Perez Guerro Trust Fund. Last year

Setneg also requested mapping, but no result so far. It seems that for SSC activity, it is

recommended that GOI has a separate SSC secretariat to manage all activities.

• Ms. Dinur (JICA): The construction of the agriculture center in Tanzania is purely

financed by Indonesian Farmers Foundation. Due to its potency, then JICA supported

them by conducting training. Due to Indonesia’s GDP perhaps still cannot support it the

program compulsorily, however, Indonesia may conduct its trial in assisting them as a

Donor. Therefore, the proposed program should be an eye catching program, and should

be decided in which forum the assistance shall be landed: ASEAN or OKI (Palestine or

Afghanistan or Timor Leste, etc). Indonesia has stipulated 1,000 pledging for Palestine by

2013, and up to present still around 126 programs. So, perhaps it can be used to

strengthen it, while the sustainability of the program also has to be maintained. It doesn’t

have to stipulate so many programs at the first five years.

• Based on the discussion, Mr. Dewo finally decided the candidate for quick win:

- Revitalization of Agriculture Training Center in Tanzania and Gambia

- Family Planning Tablet for Man

- For Palestine: Technical Cooperation with NAM Center

- Herbal Medicine

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Presentation Materials of Mr. Dewo Broto Joko Putranto

(Director of Multilateral Foreign Funding, Bappenas)

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Presentation Materials of Mr. Adik Bantarso (SSC Advisor)

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Presentation Materials of Mr. Thalib Puspokusumo (KADIN)

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