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PROJECT AND TECHNICAL ASSISTANCE PROPOSALS 2006 - 2009

Volume II Technical Assistance Proposals

Ministry of National Development Planning/ National Development Planning Agency

FOREWORD
In order to achieve the effectiveness and efficiency of the utilization of external loans and grants (PHLN), Indonesian Government has issued Government Regulation (PP) No.2/2006 on Procedure for the Provision of External Loans and Grants and the Forwarding of External Loans and Grants (to Local Government and State Owned Enterprise). To implement the regulation, several ministry decrees have been issued such as Decree of the State Ministry of National Development Planning/Bappenas No. 5/2006 on Procedure for Planning and Submitting Proposals and Assessing Projects that are Funded By External Loans and Grants. The issuance of the new regulations is one of the efforts to achieve the targets of government debt to GDP ratio of the National Medium-Term Development Plan (RPJMN 2004-2009). It is stated in RPJMN that government debt to GDP ratio is targeted to decrease from 53.9 % in 2004 to 31.8% in 2009. The external financial sources are still needed to accelerate our development efforts, however its risks, especially loan, should be managed properly. Therefore, the government has determined to improve external loan and grant management. We have been starting some improvement of external loan and grant management through (a) formulation of the borrowing strategy, (b) improvement of preparation process of PHLN projects and (c) improvement of monitoring of the PHLN project implementation. The Borrowing Strategy identifies external loans and grants needs during the RPJMN period and indicates the sector priorities that will be financed by PHLN. The borrowing strategy is a guidance on utilizing the PHLN. Under this strategy, the government will be able to manage the amount of the PHLN, and also to provide the direction of PHLN in line with our development priorities and policies. The improvement of PHLN project preparation process is done through the preparation of the List of Project Proposals funded by External Loans and Grants for Medium-Term (DRPHLN-JM) or Blue Book 2006-2009 consisting project proposals, which are suitable and feasible to be financed by PHLN for medium-term. Subsequently the project proposals those already have financing resource and fulfilled several conditions of the readiness criteria will be put in the List of Project Priority funded by External Loans and Grants (DRPHLN) or the Green Book, which will be published annually. It is expected that the improvement of preparation process will increase the quality of various PHLN project proposal (quality at entry) and consequently project performance as well The publication of the Blue Book 2006-2009 is only the first step of the improvement process of PHLN project proposals as stated above. The project proposals in the Blue Book are the result of strict and selective assessment of project proposed by related ministries/agencies, local governments, and BUMNs (State-Owned Enterprises) in total value of USD 40.8 billion. The large amount of project proposals shows the needs to

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accelerate development activities in various sectors. However, in line with RPJMN 20042009 to gradually decrease the government debt stock and to reduce the dependency on foreign sources of development financing, we have to limit the new external loan application. Based on the priority of development in RPJMN 2004-2009, the project proposals have been evaluated by Bappenas and relevant ministries/agencies. As the results, the project proposals in DRPHLN-JM (Blue Book) 2006-2009 reach the amount of 13.19 billion consisting of the 194 PA activities in the amount of USD 11.48 billion, and 228 TA activities in the amount of USD 1.71 billion. In addition, to accelerate the local government development activities, 14 projects proposed by the local government in the amount USD 134 million, has been approved in the form of on-lending mechanism. Similarly, to increase the public service by BUMN, 13 projects worth of USD 1.73 billion, comprising electricity, transportation and health facilities have also been approved. Overall the project proposals included in the Blue-Book 2006-2009 consist of project proposals in the Blue Book 2004 and 2005, which have not obtained foreign financing but still considered as priority, and also various proposals of the new projects. Therefore, with the publishing of this Blue Book, the previous Blue Book editions shall not be valid anymore. We do have a great expectation that the project proposals in this Blue-Book when implemented properly, will be beneficial for the progress of the nation.

H. Paskah Suzetta

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LIST OF TECHNICAL ASSISTANCE

Indonesian Maritime Safety and Security Agency


1.

The Project on Indonesian Maritime Security Coordination Body Structural Enhancement ............................................................................................................... 3

National Coordinating Board for Disaster Management


2.

Study on Natural Disaster Management in Indonesia ................................................. 7

Investment Coordinating Board


3.

Investment Promotion Policy Advisor ...................................................................... 13

State Audit Board


4. 5. 6.

Strengthening The State Audit Agency Capability in Audit of Central Bank ........... 17 Strengthening Accountability for an Audit of Disaster Related-Aid Project............. 18 Strengthening the State Audit Agency Institutional Capacity ................................... 20

National Agency of Drug and Food Control


7. 8.

Developing IT Based System of Risk Analysis for Food Standardization ................ 25 Improvement of Pharmaceutical Management.......................................................... 27

Assessement and Aplication of Technology Agency


9.

Capacity Building of Biopesticide Production .......................................................... 31

National Land Agency


10. 11. 12. 13.

Institutional Partnership for Strengthening Land Administration (IPSLA)............... 35 Cooperation and Lesson Learned in Land Consolidation.......................................... 37 Land Inventarization and Agrarian Reform Project .................................................. 39 Land Rights Protection and Recovery in Post Conflict and Social Unrest Area ....... 41

Bank Indonesia
14. 15.

Capacity Building for Enhancing the Economic Indicators ...................................... 45 Capacity Building for Enhancing the Role of Central Bank...................................... 50

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List of Technical Assistance

Ministry of Home Affairs


16. 17. 18. 19.

Decentralized Governance of Natural Resource Management.................................. 55 Integrated Regional Development Planning For Remote Island in Indonesia........... 58 Capacity Development for Regional Development and Community Empowerment in North Eastern Indonesia................................................................ 60 Regional Development and Strengthening Decentralization..................................... 63

Ministry of Energy and Mineral Resources


20. 21. 22. 23.

Electricity Power and Energy Policy Project............................................................. 67 Development of Coal Energy in Indonesia................................................................ 69 Geothermal Energy Development in Indonesia......................................................... 71 Supporting for Mineral Resources Development ...................................................... 73

Ministry of Law and Human Rights


24. 25.

Industrial Property Right Administration .................................................................. 77 Border Control Project with Biometrics .................................................................... 79

Ministry of Culture and Tourism


26.

Project for Tourism Product Development................................................................ 83

Ministry of Forestry
27. 28. 29. 30. 31.

Study for Developing Aforestation/Reforestation CDM (AR-CDM) Project Design Document ...................................................................................................... 89 Development of Sustainable Forest Management ..................................................... 91 Utilizing Information Technology in Forestry .......................................................... 94 Human Resources Development on Forestry Sector ................................................. 96 Development and Enhancement of Forestry Products............................................... 98

Ministry of Marine Affairs and Fisheries


32. 33. 34. 35. 36.

Fisheries Enrichment in Developing Capture Fisheries Resources ......................... 103 Development of Concept and Strategy of Indonesian Marine Cadaster for Ocean Governance.............................................................................................................. 105 Monitoring of Antibiotic Residue in Fishery Product ............................................. 107 Revitalization of Traditional Brackish-Water Ponds through Reorientation towards Organic Shrimp Farming ........................................................................... 109 Management and Conservation of Coastal Fisheries Resources ............................. 111

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List of Technical Assistance

37. 38. 39. 40. 41. 42. 43. 44. 45. 46.

The Strengthening Capacity Building of Fish Quarantine in Indonesia .................. 112 Assistance for SMEs in Fish and Shrimp Industry .................................................. 114 Sorong Fisheries Academy Capacity Building Project............................................ 116 Sustainable Indonesia Fisheries Product Competitiveness ...................................... 118 Development of Economic Scales of Seaweed Processing to Improve the Quality and Value Added ........................................................................................ 120 Entrepreneurship Improvement The Group of Small and Medium Enterprises on Fish Processing Products......................................................................................... 122 Fishery Resource Management and Development Strategy in Arafura Waters ...... 124 Development of Shellfish and Sea Cucumber Hatcheries and Farming in Indonesia ................................................................................................................. 126 Community Based Development on Coastal Environmental Management............. 128 Integrated Fisheries Development and Waters Resource Management on Tempe Lake......................................................................................................................... 130

Ministry of Health
47. 48. 49. 50.

Support for Elimination of Lymphatic Filariasis (ELF) in Indonesia and Other Communicable Diseases Control (CDC)................................................................. 135 Strengthening Surveillance and Response to Avian and Pandemic Influenza......... 137 Preparedness and Disaster Response Management ................................................. 139 Quality Improvement on Public Health Services .................................................... 140

Ministry of Finance
51.

Public Financial Management Multi-Donor Trust Fund (PFM-MDTF) to Support Indonesias Government Financial Mangement and Revenue Administration Project (GFMRAP)......................................................................... 145 PHRD Project Preparation Technical Assistance Grant for the Second Government Financial Management and Revenue Administration Project (GFMRAP II) .......................................................................................................... 147 State Asset Management and Valuation .................................................................. 149 Training on Public Relation, Fiscal Management and International Cooperation... 151 Training and Technical Assistance on Internal Audit ............................................. 153 Development on Training and Learning Program ................................................... 155 Development of Capital Market and Financial Policy............................................. 157 Training and Technical Assistance on Taxation...................................................... 159

52.

53. 54. 55. 56. 57. 58.

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List of Technical Assistance

Ministry of Communication and Information


59. 60. 61.

Strengthening Regulatory Functions in Information and Communication Technology.............................................................................................................. 163 Improvement of Information and Technology Facilities ......................................... 165 Development of Information and Communication Technology Applications and Human Capacity ...................................................................................................... 167

Ministry of Public Works Construction and Human Resource Development Agency


62. 63. 64.

Development of Quality Management of Public Infrastructure Construction in Indonesia ................................................................................................................. 171 Technical Assistance for Construction Service Development and Reform............. 173 Capacity Building and Construction Management.................................................. 175

Agency for Research and Development


65. 66. 67. 68. 69. 70.

Capacity Development for River Basin Organizations (RBOs) in Practical Water Resources Management and Technology ..................................................... 177 Development of Integrated River Zone Design (IRZD) Model............................... 179 Establishment of Laboratory for Coastal Management in Bali ............................... 181 Risk Management on Development of Coastal Area in Indonesia; An Application of Global Information System (GIS) ................................................... 183 Comprehensive Study on Groundwater Management for Semarang City............... 185 Study on Preservation Measures for the Existing Large Scale Dam Reservoir....... 187

Directorate General for Highways


71. 72. 73. 74. 75.

Road Policy Advisor ............................................................................................... 189 Capacity Building for Asset Management of Roads and Bridges ........................... 191 Capacity Building for Public-Private Partnership (PPP) Operation ........................ 193 Feasibility Study and Detailed Design Padang By Pass Capacity Expansion and Duku Fly Over......................................................................................................... 195 Study on Arterial Road Network Development Plan for Sumatra Island ................ 197

Directorate General for Human Settlements


76. 77. 78.

Review All of Standards, Manuals, and Regulations Related to Building .............. 199 Study on Water Supply Development for the Prambanan Area .............................. 201 Technical Assistance on Building Development Management ............................... 203

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List of Technical Assistance

79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91.

Technical Assistance for Batam Sewerage Project.................................................. 205 Water Supply Development for Kediri Municipality .............................................. 207 Water Supply Project in West Halmahera Regency, North Maluku Province ........ 209 Metropolitan Sanitation Management and Health Project....................................... 211 Sector Survey on PDAM Asset Management ......................................................... 213 Capacity Building of Water Supply System Management (SPAM) Project ........... 215 Revitalization of Solid Waste Final Disposal System and Its Operation in the Municipalities of Banjarmasin, Palembang and Medan .......................................... 217 DED and Supervision Greater Yogyakarta, Sleman Regency and Bantul Regency................................................................................................................... 219 Master Plan and DED for Drainage in Mebidang Metropolitan Area ..................... 221 The Preparation of Umbulan Spring/Greater Surabaya Water Supply .................... 223 Implementation Stage of Regional Water Supply Project ....................................... 225 The preparation of Urban Sector Development Reform Project 2 (USDRP-2)....... 227 Technical Assistance for a Secretariate for a National Urban Forum for Indonesia ................................................................................................................. 229

Directorate General for Spatial Planning


92. 93. 94. 95. 96. 97. 98. 99. 100.

Participatory Study on Formulation of Spatial Planning Gerbangkertosusila Zone......................................................................................................................... 231 Comprehensive Development Plan for Integrated Economic Development Zones (IEDZ) .......................................................................................................... 233 Strengthening Spatial Utilization Monitoring System............................................. 235 Integrated Regional Master Plan for the Medan Metropolitan Area ....................... 237 Formulation of Strategy and Implementation Control of Spatial Planning Utilization in Jabodetabek ....................................................................................... 239 Capacity Bulding in Spatial Planning...................................................................... 241 Formulation of Spatial Plan of Palembang and Surrounding Areas ........................ 243 Development of Special Economic Zone (SEZ) of Northern Sumatera.................. 245 Urban and Regional Planning Expert ...................................................................... 248

Directorate General for Water Resources


101. 102.

Integrated Water Resources Management in Jabodetabek and Its Surrounding Area ......................................................................................................................... 250 Comprehensive River Water Management of The Batang Hari River Basin in Jambi Province ........................................................................................................ 252

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List of Technical Assistance

103. 104. 105. 106. 107. 108. 109. 110. 111. 112. 113.

Integrated Water Resources Management in Bali Province .................................... 254 Feasibility Study and Detail Design of Tukad Ayung Multi Purpose Dam............. 256 Preparation of a Databank for Coastal Protection and Management ....................... 257 Preparation of National Lowland Management Strategy ........................................ 259 Flood Control/Drainage Improvement for Pekanbaru City and Water Resources Development in Riau Province................................................................................ 261 Follow Up Project for Integrated Sediment Related Disaster Management ............ 263 Overseas Training on Water Allocation and Drought Management........................ 265 Water Quality Management and Water Resources of the Upper Citarum River Basin........................................................................................................................ 267 Comprehensive Study on Tondano-Lemebeam-Lekpang Water Resources Management in North Sulawesi .............................................................................. 269 Technical Assistance for Curug Irrigation Pumping Station and Jatiluhur Hydroelectric Power Plant....................................................................................... 271 Water Resources Policy Advisor............................................................................. 275

Ministry of National Education


114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125.

Masters Degree for Primary and Secondary Staff ................................................... 279 Profile of Senior Secondary Education in Indonesia ............................................... 281 Regional Education Development and Improvement Program for Basic Education................................................................................................................. 283 Short Course for Management and Quality Improvement in Primary and Secondary Education............................................................................................... 285 Short Course for Planning and Management of Primary and Secondary Education................................................................................................................. 287 Higher Education Training on Developing Education Content for Mobile Learning .................................................................................................................. 289 Long Term Training for Researchers at the University of Indonesia ...................... 291 Training of Education Trainers ............................................................................... 292 Enhancement of Educational TV Programs to Improve Opportunity for Nation Wide Basic Education, Especially in Remote Areas ............................................... 294 ASEAN University Network/Southeast Asia Engineering Education Development Network (AUN/SEED Net) Phase II.............................................. 296 Basic Education Sector Capacity Support Programme 2......................................... 299 Supporting for Education Sector Program............................................................... 301

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List of Technical Assistance

Ministry of Trade
126. 127. 128. 129. 130. 131. 132. 133. 134. 135.

Development of Trade Facilitation in Indonesia ..................................................... 305 Development Study on Indonesian Trade Issues and Export Promotion Strategies ................................................................................................................. 307 Export Promotion and Development of Market Access .......................................... 309 Increasing the Capability of Mastering Chinese Language for SME's and Government Officials .............................................................................................. 311 Managing Trading House for Small and Medium Enterprises (SMEs) Export Development ........................................................................................................... 312 Support for Small and Medium Scale Industries in Agribusiness for Eastern Indonesia ................................................................................................................. 314 Technical Assistance for Capacity Building............................................................ 316 Improvement of Infrastructure Facilities and Human Resources Development in the Ministry of Trade............................................................................................... 318 Capacity Building in Trade and Trade-Related Areas............................................. 320 CP Training for Strengthening of Export Promotion Organization......................... 322

Ministry of Transportation Education and Training Agency


136. 137.

Set Up Aeronautical Information Service (AIS) Training....................................... 327 Procurement of Security Training and Workshop for Aircraft Maintenance .......... 329

National Search and Rescue (SAR) Agency


138.

Master Plan of the National SAR Agency (Basarnas) for the Development of SAR Human Resources ........................................................................................... 331

Directorate General for Land Transportations


139. 140. 141.

Development of Weigthing Scale in Pantura (Northern Coast Area) to Support Performance Base Control....................................................................................... 333 Land Transport Development Plan.......................................................................... 334 Integrated Public Transportation Master Plan for the Bandung Metropolitan Area ......................................................................................................................... 337

Directorate General for Sea Transportations


142. 143.

Long Term Expert for Strengthening Maritime Safety and Security Especially for Anti Piracy and Anti Maritime Terrorism.......................................................... 339 Master Plan for Strategic Development of Ports at West Coast of Sumatra............ 341

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List of Technical Assistance

144. 145. 146. 147.

Port Security System Improvement Plan................................................................. 343 Standardization for Development of Environment Protective System in Ports in Indonesia ................................................................................................................. 345 Maritime Safety Plan Concerning Law Enforcement, Oil Spill Combating, and Search and Rescue................................................................................................... 347 Long Term Expert for Upgrading Port State Control .............................................. 349

Directorate General for Air Transportations


148. 149. 150.

Project for Strengthening Particular Airports in Overcoming Natural Disasters..... 351 Project for Introduction of Environmental Friendly Airport (Eco-Airport) ............ 353 Training Program for Aircraft Accident Investigators ............................................ 355

Directorate General for Railways


151. 152. 153. 154. 155.

Detail Engineering Design of Railway Coal Transportation Kapuas - Mahakam ... 357 Improvement of the Railway System in the East Jakarta Industrial Region............ 359 Improvement of Railway Safety Management (Phase 2) ........................................ 361 Capacity Building of the Jabotabek Railway........................................................... 363 Feasibility Study on the Development of Jogja-Solo Urban Rail Services ............. 365

Ministry of Industry
156. 157. 158. 159. 160. 161. 162. 163. 164. 165. 166. 167.

Building New Campus for the Academy for Leather Technology .......................... 369 Project on Supporting Metals and Machinery Industries Development .................. 371 Food Packaging and Preservation............................................................................ 372 Development Center for Metal Casting Technology of High Grade Materials in Indonesia ................................................................................................................. 374 Development of Leather Industry............................................................................ 375 Clean Productivity and Environmental Management for Pulp and Paper Industry . 377 Strengthening of the Center for Material and Technical Product on Consumer Electronics Quality Assurance ................................................................................ 378 Assesment of Indonesia Shipbuilding Industry ....................................................... 380 Development of Ramie Processing in Indonesia ..................................................... 382 Establishment of Electronic Ceramic Laboratory Unit............................................ 384 Human Resources Development Center for Agro-Based Industry for Implementing Food Safety System in Indonesia ..................................................... 386 Improving the Environmental Performance of SMIs by Promoting Cleaner Production in Indonesia........................................................................................... 388

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List of Technical Assistance

168. 169. 170.

Establisment of Electronics Industrial Center at North Sumatera ........................... 390 Strengthening of the Research and Development Laboratory for Iodized Foods and Beverages Commodities ................................................................................... 391 The Development of Nanotechnology for Bioactive Component Extraction.......... 393

Ministry of Agriculture
171. 172. 173. 174. 175. 176. 177.

Support for Agricultural Development.................................................................... 397 Quarantine Early Warning System in Minimizing the Spreading Disease of Avian Influenza (AI) Among the Regions Based on Information Technology ....... 399 Development of Jatropha Curcas Oil as Bioenergy for Rural Areas ....................... 401 Feasibility Study on the Development of Cocoa Industry in Indonesia .................. 403 Strengthening Quality Control System of Agricultural Products ............................ 405 Feasibility Study on the Development of Indonesia Sugar Toward SelfSufficiency of Sugar in 2009................................................................................... 407 Regional Programme for Participatory and Integrated Agriculture, Forestry and Fisheries Development for Long Term Rehabilitation and Development in Tsunami-Affected Areas ......................................................................................... 409 Improving of Post-Harvest Technology and Marketing Facilities .......................... 411 Sustainable Management of Agricultural Research and Technology Dissemination Project (SMARTD) ......................................................................... 413 Standardization and Quality Control for Horticulture Production of Indonesia ...... 415 Enhancing Livestock Development Policy.............................................................. 417

178. 179. 180. 181.

Ministry of Social Affairs


182.

Integrated Rehabilitation Center for Children with Problems in Indonesia............. 421

Ministry of Manpower and Transmigration


183. 184. 185. 186. 187.

Improvement of Employment Services in Indonesia............................................... 425 Combating Forced Labor and Trafficking of Indonesian Migrant Workers............ 427 Education and Skill Training for Youth in Eastern Indonesia (EAST) ................... 429 Construction of Technical and Cultural Cooperation Center .................................. 431 Support for Manpower Policy and Industrial Relation............................................ 433

Indonesian National Police


188. 189.

Project for Support Program for Reform of Indonesian National Police................. 437 Voice Check Security System ................................................................................. 439

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List of Technical Assistance

State Secretariate
190.

Strengthening the Capacity of Bureau for International Technical Cooperation of the State Secretariate ........................................................................................... 443

Corruption Eradication Commission


191. 192. 193. 194.

Security and Law Enforcement in Indonesia........................................................... 447 Anti-Corruption Clearinghouse ............................................................................... 449 Integrated Information Communication (Public Advocation)................................. 451 Enhancing Corruption Eradication Commission Performance in Combating Corruption ............................................................................................................... 453

Commission for Supervision of Business Competition


195. 196. 197.

Study on Competition as Instrument of Indonesian Economy and Law.................. 457 Capacity Building on Pro-Competitive Regulatory Implementation of Competition Law..................................................................................................... 459 Development of Digitalized Library and Integrated Data Base System.................. 461

Indonesian Institute of Sciences


198. 199.

Assistance in Establishing Research Laboratory for Energy, Environment, and Natural Substances .................................................................................................. 465 Collaborative Study and Development of Indonesian and Chinese Herbal Medicines (Phase 2) ................................................................................................ 467

Ministry of Cooperatives and Small and Medium Enterprises


200.

Development of Small and Medium Enterprises (SMEs) Promotion Services ....... 471

Ministry of Environment
201. 202. 203. 204. 205. 206.

Carrying Capacity of Jabodetabek Area and Sumatera Island................................. 475 Comprehensive Environmental Assessmet (CEA) of Recent Disasters in Central Java and West Java.................................................................................................. 477 Western Java Environmental Management Project ................................................. 479 Indonesian German Environmental Program Phase III ........................................ 481 Environmental Governance and Sustainable Livehood Project (EGSLP)............... 483 Institutional Capacity Building on Sustainable Development ................................. 485

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List of Technical Assistance

Ministry of Women Empowerment


207. 208.

Gender Accountability Reform Support.................................................................. 489 Improvement of Woman Participation in Development Program ........................... 491

Ministry of Administrative Reform


209. 210.

Support for Good Governance (Phase 3)................................................................. 495 Strengthening Good Governance on Public Services .............................................. 497

State Ministry of Public Housing


211.

Technical Assistance for Development of Low Cost Multi Storey Rental Housing in Big and Metro Cities Project................................................................. 501

Ministry of National Development Planning


212. 213. 214. 215. 216. 217. 218. 219. 220. 221.

Capacity Building in Trade Liberalization Analysis ............................................... 505 Improving the Indonesian Trade Policies on the Issue of Trade for Development . 507 Environmental Sector Support Program II .............................................................. 509 Feasibility Study for Jatiluhur Water Treatment Plant ............................................ 511 Local and Regional Economic Development .......................................................... 513 Technical Assistance for Strengthening Capacity to Improve Aid Effectiveness ... 515 Electronic Government Procurement Infrastructure Development Technical Advisory Projects .................................................................................................... 519 Human Resource Management for Capacity Building of Government Officers..... 521 Capacity Building to Strengthening Government Institution .................................. 523 Economic Policy Advice ......................................................................................... 525

Ministry of Research and Technology


222.

Improvement of Research Capacity ........................................................................ 529

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List of Technical Assistance

Local Government of Jepara Regency


223.

Jepara Fish Landing - Base Expansion Project........................................................ 533

Local Government of Musi Banyuasin Regency


224.

Musi Banyuasin Librarian and Archivist Education Project ................................... 537

Local Government of South Sulawesi


225. 226. 227. 228.

Regional Development Policy Advisor to South Sulawesi ..................................... 541 Enhancement of Urban Development Management in the Mamminasata Metropolitan Area ................................................................................................... 543 Industry Development Based on Local Resources in South Sulawesi..................... 546 The Integrated Program for Junior Secondary Education in South Sulawesi Province................................................................................................................... 549

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Indonesian Maritime Safety and Security Agency

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Code No: T-06-11100-0390-062002 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : The Project on Indonesian Maritime Security Coordination Body Structural Enhancement : 36 months : DKI Jakarta : Indonesian Maritime Safety and Security Agency : Indonesian Maritime Safety and Security Agency

6. Background and Justification Indonesia is one of the largest archipelago countries in the world, and its water area is rich with resources. In Indonesia water area, there are important straits (Malacca, Sunda, Lombok etc), and many International Sea-traffics lanes. Recently, in the water area, piracy, sea traffic accidents, haze (smoke pollution from forest fires in Sumatera) have posed serious problems. In this respect, there are many organizations in Indonesia dealing with maritime security and safety, but they are inadequate in terms of the problems faced. The existing maritime security system is not functioning adequately. Therefore, in December 2005, Presidential Regulation 81/2005 has set up an organization for coordinating maritime and security, i.e. a new BAKORKAMLA. On the basis of this Presidential Regulation, the Coordinating Minister for Politics, Law and Security had established the new maritime safety and security organization (new BAKORKAMLA). After establishing this organization, it is expected that Indonesia maritime security system would be improved and enforced. On the basis of this initiative, it is necessary to have a Master Plan for the principal and guide to future maritime safety and security in Indonesia. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. Enforcement of BAKORKAMLA; Indonesia Maritime security system coordination by

b. Establishment of coordinating committee for maritime security consisting of the related ministries and executing agencies for ensuring the effective implementation of Maritime security.

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Code No: T-06-11100-0390-062002 9. Activities To set up BAKORKAMLA : a. Law and system enforcement; b. Systemizing Indonesia maritime organization. For education and training system a. Establishing education and training system; b. Capacity building of trainers. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,320,000 0 3,320,000 0 0 0 0 0 3,320,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,320,000 3,320,000

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National Coordinating Board for Disaster Management

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Code No: T-06-11200-0302-068007 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Study on Natural Disaster Management in Indonesia : 24 months : National wide : National Coordinating Board for Disaster Management : Secretariate of National Coordinating Board for Disaster Management, National Coordinating Board for Disaster Management

6. Background and Justification Indonesia, the largest archipelago country in the world, is well known as a disaster-prone country. The natural disasters, such as floods, landslides, volcanic eruptions, earthquakes and tsunami have occurred frequently with immeasurable damages to the society and economy. In December 2004, a huge earthquake (magnitude 8.1) and tsunami hit Aceh and casualties reached to 94,000 and 7,000 missing. In addition to the earthquake and tsunami in Aceh, there were 112 floods, 20 earthquakes, 5 volcanic eruptions and 58 landslides in 2004 with 1,000 causalities. It implies that there is a high frequency of disaster in Indonesia. The Government of Indonesia has made efforts to conduct structural and nonstructural measures for the disaster management. However, an application of structural measures has limitations due to the financial difficulties of the government. Therefore, nonstructural measures need to be strengthened for the disaster management. Since 1979, coordinating boards of disaster management consisting of agencies concerned have functioned from the national level to village level. Based on the national disaster management policies/strategies, the coordinating boards at different levels are mandated to coordinate the implementation of disaster management before, during and after disaster. However, there are still many obstacles in disaster management, such as insufficient coordination among agencies concerned, lack of information sharing, delaying in warning and evacuation, institutional issues, lack of awareness and participation, no reflection of disasters to land-use/development plan and so on. Therefore, the study to formulate the disaster management plan is urgently required in order to secure the society against disasters. The study consists of a master plan and feasibility study phases. Three model areas are selected for the master plan study to identify issues in past disaster management and formulate disaster management plan. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation

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Code No: T-06-11200-0302-06007 8. Objectives a. To formulate a natural disaster management plan focusing the preparedness for disaster at national level b. To conduct a feasibility study (F/S) for priority project to mitigate disaster related issues c. To strengthen the related agencies capacity on disaster management, such as National Coordinating Board for Disaster Management (BAKORNAS), Satuan Koordinasi Pelaksanaan (SATKORLAK), Satuan Pelaksana (SATLAK), and Non Government Organizations (NGOs) 9. Activities The Master Plan Study: a. Review and evaluate the present disaster management system b. Identify the present disaster countermeasures consisting of structural and nonstructural measures in the model areas. c. Study natural conditions inducing disasters in the model areas d. Identification of people awareness and participation in the disaster management system. e. Study on the present information network and identification of issues f. Public consultation meetings g. Capacity building h. Formulation of disaster management plan consisting of the following items 1) Preparedness for disaster including disaster mitigation, emergency relief, restoration/rehabilitation measures 2) Proposal for law and institution strengthening 3) Implementation program at national level 4) Capacity building program 5) Institutional strengthening program 6) Plan to promote the public participation in disaster management 7) Selection of scope of feasibility study

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Code No: T-06-11200-0302-06007 Feasibility Study: a. Additional data collection and field investigation b. Proposal of detailed functions for disaster management c. Design of system and facilities necessary for the disaster management d. Plan of operational and Maintenance e. Preparation of action manuals for the disaster management f. Project evaluation g. Implementation program h. Public consultation meetings i. Capacity building

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 0 0 0 0 0 5,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,000,000 5,000,000

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Investment Coordinating Board

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Code No : T-02-06500-0490-064008 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Investment Promotion Policy Advisor : 48 months : Throughout Indonesia : Investment Coordinating Board : Investment Coordinating Board

6. Background and Justification As known, Indonesia has a huge potential of primary resource-based manufacturing industry. Its natural resources are spread throughout the regions. In that respect, the Investment Coordinating Board has set up its sector-based promotion strategy, involving comprehensive promotion materials in the form of sector/commodities based, namely leading business sectors/commodities, in particular regions. In addition, the government has placed a high priority to boost economic development in certain underveloped regions, such as Central Kalimantan and West Sulawesi. The purpose of the project is to identify and deeply assess the leading business sectors/commodities of these regions that can be promoted to interested FDI. In this context, the project will compile the result into an attractive form of promotion materials. It is very much realised that competition amongs countries in attracting FDI could not be avoided and must be tackled by proper policy direction and by promoting selected commodities. In order to attract foreign investement, and improve the investment climate, the BKPM needs advisory services from experts. 7. Priority Employment, Investment, and Export 8. Objectives Attracting more investment from Japan. Improving the investment climate following up Indonesia-Japan Public/Private Sector Join Forum on Investment launced by the agreement between the President of Indonesia and the Japanese Prime Minister. 9. Activities Investment Promotion Policy Advisor a. Expert for technical assistant on investment promotion policy b. Financial support for all the expenses of project

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Code No : T-02-06500-0490-064008 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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State Audit Board

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Code No: T-06-00400-0101-062015 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening The State Audit Agency Capability in Audit of Central Bank : 12 months : DKI Jakarta : State Audit Board : State Audit Board Training Center, State Audit Board

6. Background and Justification Since 1999, the State Audit Board (BPK) has had the mandate to audit the Bank of Indonesia (BI). The audit of the Bank of Indonesia is mandatory for the BPK, which is the only auditor to conduct financial audit on the BI financial statement. BPK has an important and strategic role in carrying out audit of the Central Bank of Indonesia, and hence in promoting good governance in the monetary sector. BPK has identified a need to strengthen its institutional capacity to carry out audit of the BI in order to fulfill its audit mandate. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation. 8. Objectives To strengthen the institutional capacity of BPK in carrying out its mandate to audit the Bank of Indonesia. 9. Activities Strengthening BPK Capacity by means of workshop, seminar, job-training in conducting audit of Bank of Indonesia. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 1,860,000 0 1,860,000 100,000 0 0 0 100,000 1,960,000

800,000 1,160,000 1,960,000

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Code No: T-06-00400-0101-062016 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening Accountability for an Audit of Disaster Related-Aid Project : 12 months : DKI Jakarta : State Audit Board : State Audit Board

6. Background and Justification The Tsunami of December 2004 caused widespread devastation and loss of lives in several Asian countries, namely in Indonesia, Thailand, India and Sri Lanka. This disaster generated a lot of symphaty for affected communities among government, businesses and the public circles around the world. Indonesia was the worst hit by this natural disaster. After an initial period of emergency relief, work towards reconstruction of livelihooods, homes and infrastructure has commenced at an unprecedented scale. The total cost of reconstruction and rehabilitation in Indonesia was estimated at US$6 billion. Official aid pledges has been received from over 40 countries, in addition to which bilateral and multilateral aid agencies have also provided funds. Some accountability concerns are emerging among the donor community on the manner in which such funds are being utilitized on the ground. Early 2006 at least one international non government organization has publicly admitted serious fiduciary lapses in the administration of its work program in Aceh, and this has raised concerns among the wider donor community about the weak control environment in Aceh and the risk that this poses for the rest of the reconstruction program. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation. 8. Objectives Support certain selected activities of the INTOSAI Task Force so as to help establish a comprehensive audit trail of aid flows for disaster related aid, which could then be utilized to enhance accountability for disaster aid and also be used by the other INTOSAI work groups to develop audit guidelines. 9. Activities a. b. c. d. T - 18 Develop insights on accountability issues in the disaster-aid sector Conduct a pilot to study the possibilities of the use of geographical Exhange of information, sharing of experience, know-how and audit result Development of Website

Code No: T-06-00400-0101-062016 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 500,000 0 500,000 50,000 0 0 0 50,000 550,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 550,000 550,000

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Code No: T-06-00400-0101-062017 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening the State Audit Agency Institutional Capacity : 36 months : DKI Jakarta : State Audit Board : State Audit Board

6. Background and Justification Upon the enactment of the State Audit Agency (BPK) Strategic Plan and the new BPK Law/UU No.15 2006 dated October 30,2006, the BPK has a clear vision and mandate regarding its role in auditing of management and accountability of state finance. Development and continues improvements in all aspects of organization should be made to fully implement the BPK Strategic Plan and the new BPK Law. This covers areas such as (1) BPKs core function (audit) which are revision of audit standard, revision of audit management, development of quality assurance and presentation of audit report to the stakeholders and (2) supporting function such as improvement on organization structure, improvement human resources management covering improvement of the staffing system and procedures (transparency in recruitment, career path in promotion system). Improvement on infrastructure is also important especially with the plan of opening BPK regional office in all provinces as required by the new BPK Law. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives To strengthen BPK capacity in order to achieve the objectives defined in BPK Strategic Plan and to fulfill requirement defined in the new BPK Law. These activities are: a. Monitor the implementation of new BPK Law. b. Monitor Implementation of BPK Strategic Plan 2006-2010 c. Development of new BPK Organization structure d. Development of Human Recourses Management e. Improvement of BPK skill trough training both in-country and overseas (Degree program, short courses and secondment) f. Improvement in IT area including hardware, software and brain-ware. g. Procurement or development of application to support audit and non audit area. h. Enhancement of Research and Development capacity in BPK i. Enhancement of Internal Fiduciary in BPK j. Development of accounting and reporting system in BPK. T - 20

Code No: T-06-00400-0101-062017 9. Activities a. b. c. d. e. f. g. h. i. Consultant on Implementation of BPK Law Consultant on Implementation of BPK Strategic Plan Consultant on BPK Organisation Consultant on Human Resources Management Training for BPK Staffs IT Equipment and Pheriperals Consultant on enhanchement of R&D Consultant of Internal Oversight of BPK Consultant on development of accounting and reporting system

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 20,291,000 0 20,291,000 1,015,000 0 0 0 1,015,000 21,306,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 21,306,000 21,306,000

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National Agency of Drug and Food Control

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Code No: T-05-06300-0701-061019 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Developing IT Based System of Risk Analysis for Food Standardization : 24 months : DKI Jakarta : National Agency of Drug and Food Control : National Agency of Drug and Food Control

6. Background and Justification The importance of risk analysis in developing food safety policy is stated by the FAO, WHO, EU and US-FDA. Risk analysis has 3 (three) components, which are risk assessment, risk management, and risk communication. In the process of developing food standards based on risk analysis it is necessary to collect research data, to organize expert meetings, to exchange information with stakeholders, to communicate the standard since the first process until the standard established, based on consensus, and also harmonization process of standard in the international forum. Based on experience, the average time needed to develop a standard is 3 to 4 years. This is because in order to colect national and international data and to attain a consensus with all the stakehoders, need to do a lot of meetings, which naturally a lot of costs and time. So, the development and revision of standards are proceeding slowly and cannot adopt the newest standards. Information Technology (IT) is the best system for fulfilling requirement on standard development, because with this system gathering research data is easier, expert meetings by electronic (e-meeting), exchange information can happen swiftly because each and everyone can participate whereever they are, so the expense and time are more efficient. After studying IT system which have been used in many countries, the IT based system standard from FSANZ ( Food Standards Australian New Zealand) is the most appropriate system to be adopted by Indonesia, because it is not too complicated compared to the other. The standard management is dynamic based on the knowledge of safety, quality of food nutrition, thereby that will be watered down with IT system. 7. Priority Education and Health 8. Objectives The purpose of this project are to increase the ability of human resource in food product standardization and make the process of formulation for IT based standard become more speedier.

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Code No: T-05-06300-0701-061019 9. Activities a. b. c. d. Technical Assistance Training Equipment Others

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 300,000 0 0 0 300,000 2,300,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,300,000 2,300,000

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Code No: T-05-06300-0701-061020 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agencies : Improvement of Pharmaceutical Management : 60 months : DKI Jakarta : National Agency for Drug and Food Control : a. Ministry of Health b. National Agency for Drug and Food Control

6. Background and Justification The essential drugs are ditributed to all health centers (appr. 7,500) by the drug supply system that provides free medical treatments for the poor (arround 20 % of population) and cheap medical treatments for the population in Indonesia. But it is said that there are substandard drugs and counterfeit drugs in Indonesian markets because of insufficient quality control and these drugs do not have any treatment effects but may be harmful to people. There is a possibility that government budget allocation for public drug supply will be reduced. It is urgent and important to improve pharmaceutical management of the National Agency for Drug and Food Control in order to combat sub-standard drugs and counterfeit drugs. Under the economic crisis since 1998, there have been a lot of difficulties in the public drug supply and people could not get suitable medical treatment. After local governments have had responsibility for public drug supply under the decentralization in 2001, there seems to be a lot of insufficient drug supply management such as lack of drug, improper storage, expired drugs, improper prescription, etc. It is necessary to support steps for improving drug supply mangement and for inducing rational drug use of public drug supply. The activities of the project are to formulate training modules curriculum for drug supply management and rational drug use, to train health centers staffs related to drug supply management in the project model sites, to train drug testing skills for national laboratory staffs and to advise related matters. This request is to strengthen the current project in order to protect people and improve health status through providing safety and sufficient drug.

7. Priority Education and Health

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Code No: T-05-06300-0701-061020 8. Objectives a. To improve the capacity and system to supply safety drug (drug evaluation, quality control, post-market surveillance, drug testing, inspection, etc). b. To improve drug supply management and rational drug use at health centers and at model sites and to supply drug efficiently and use drug rationally. 9. Activities a. b. c. d. Long term experts Training Short-term experts Equipment

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 375,000 0 0 0 375,000 2,875,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,875,000 2,875,000

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Assessement and Aplication of Technology Agency

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Code No: T-04-08100-0104-064024 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Capacity Building of Biopesticide Production : 12 months : West Java : Assessement and Aplication of Technology Agency : Center Assessment for Biotechnology Serpong

6. Background and Justification Indonesia is an agricultural country where most of the people depend on this sector. Agriculture program is a strategic sector for Indonesias economic development. A better agriculture practices can contribute to improve the product quality, environmental preservation and ensure resources sustainability for sustainable development. The high demand for good quality agriculture products and environmental friendly approaches on cultivation have made it necessary to create the new methods in biotechnology based on agriculture. Indonesia still faces challenges in establishing the biotechnology based on agriculture due to some limitations and problems, such as science and limited technological capability, insufficient human resources capacity, and lack of public awareness. Capacity building and innovation on bio technology and bio pesticide is one tool which can be applied to address those problems Bio Pesticide as part of biotechnology innovation is needed to substitute the chemical pesticide which no longer appropriate used in agriculture cultivation. It is widely known that effects of chemistry application to the environment and human health were not good. Several stakeholders in agriculture should be introduced with new approach in environmental friendly agriculture concept. Therefore, it is very fundamental to increase national research and human capacity in bio pesticide technology. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives a. Strengthening of research and development program in bio pesticide innovation and production

b. Improvement of human resources capacity and technological capability on biotechnology and bio pesticide to support agriculture development program c. Promotion and socialization of the application of bio pesticide in several potential agriculture location, cooperate with local government, farmers and related institution T- 31

Code No: T-04-08100-0104-064024 9. Activities a. Assessment and Development of Bio Pesticide Technology b. Training and Capacity Building c. Pilot Plan d. Dissemination program 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 50,000 0 0 0 50,000 1,050,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,050,000 1,050,000

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National Land Agency

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Code No: T-01-05600-0505-067026 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Institutional Partnership for Strengthening Land Administration (IPSLA) : 36 months : West Java, West Kalimantan, and East Nusa Tenggara : National Land Agency : National Land Agency

6. Background and Justification Land development program has been considered as a peripheral sector within the national development programs since several decades ago, nevertheless the land management and service are ironically urged to be perfect, but it is demanded without any support of adequate infrastructures. The overlapping of land ownerships, the unbalanced and speculation of land ownerships, the reality of uncontrolled of land value and market, the poor of public land services, and the weakness of land resource use monitoring are only a part of problems on the lack ness of cadaster and land resource infrastructures in Indonesia. A good land administration management is believed, and has been proven by developed countries, to be able to contribute economic development, to reduce poverty, to improve the quality of environment, and to give certainty and security of land ownership and land use. Quality improvement of land administration management is an emergent need, besides based on those above reasons, there have been some more problems to be solved : 110 million of Indonesian population are under poverty line (World Bank, 2005); only 27 million land parcels (31,7 %) have been registered among 85 million of total; low public awareness of the benefits of land registration; and land and property market transactions (values) are not transparent. 7. Priority Poverty and Disparity Alleviation 8. Objectives a. Development Objectives : Sustainable economic development promoted which contributes to poverty reduction, improved environmental management and improved land rights for poor people, women, and ethnic minorities;

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Code No: T-01-05600-0505-067026 b. Project Goals : Methodology for development of Land Offices in Indonesia to have the human and technical capacity to deliver effective services to general publics and to local governments, throught the institutional partnership between the Government of Indonesia, and an international agency for Land Administration. 9. Activities a. Exchange of knowledge and experience for continued development of legislation, organization, management and methodology for land administration b. Improved methods and procedures for demand-driven land registration, both sporadic and self-sufficient systematic certification of land titles (SMS: Sertifikat Massal Swadaya); c. An integrated urban LIS (Land Information System) including exchange mechanism of information procedures and efficient information through e-government; d. A methodology in land administration for BPN to support local authorities to provide security of tenure for urban informal settlements 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 485,000 0 0 0 485,000 2,985,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,985,000 2,985,000

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Code No: T-03-05600-1005-067027 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Cooperation and Lesson Learned in Land Consolidation : 36 months : DKI Jakarta : National Land Agency : Deputy for Overseeing and Regulating Land Matters, National Land Agency

6. Background and Justification Land Consolidation is a policy for the re-arrangement of land tenure and land use as well as an effort on land provision for development, in order to increase the quality of environment and natural resources conservation by involving active community participation. The implementation of Land Consolidation is based on National Land Agency regulation No. 4 of 1991 namely Land Consolidation. In Indonesia, Land Consolidation that began since early 1980s and is being develop till now. The Land Consolidation activities are re-arrangement of volume and the shape and allocation of the land use which highly participating from the owners to achieve best communities including supporting area such as road plan, health facilities and other public facilities. In present, one of the consolidation types that everything is done by the participating people including the cost operational of land consolidation operational. Those activities are done by people approach. The goals of land consolidation can reduce urbanization, fulfill good property for the people and also make good public facilities such road access and infrastructures. In achieving land consolidation goals, Land National Agency develop the division of Land Consolidation to be as a Directorate namely Land Consolidation Directorate which has three divisions. The divisions are sub of directorate of allocation division of land ground, sub of directorate of land ground settlement and sub of directorate promotion, cooperation and development. 7. Priority Poverty and Disparity Alleviation 8. Objectives The project goal is not only making the Land Agency staff to become professional public servant to do Land Consolidation but also to continue the agreement on Land National Consolidation in Indonesia.

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Code No: T-03-05600-1005-067027 9. Activities a. Preparation: The development of special training on land consolidation and analysis on the types of cooperation for land consolidation b. Implementation: training and special education on land consolidation for BPN staff and socialization of programs c. Reports Development: reports on training and special education d. Evaluation of land consolidation scheme e. Improving land consolidation guidelines f. Implementation of land consolidation pilot project 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,350,000 0 2,350,000 353,000 0 0 0 353,000 2,703,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,703,000 2,703,000

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Code No: T-01-05600-0505-067029 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Land Inventarization and Agrarian Reform Project : 60 months : DKI Jakarta : National Land Agency : National Land Agency

6. Background and Justification For the Indonesian people, land is a gift from God, so the relation of the people of Indonesia to the land is an eternal relationship in which welfare, prosperity, justness, sustainability and harmony of life are settled. However since the Indonesia independence, we have realized that there have been many issues on land matters inherited from te colonialism. The outstanding issues are : a. First : the imbalance of authority, ownership, land use and land utilization, while there is increasing need of land due to the rapid population growth; b. Second : the dualisme in law : the traditional law and international/western law. c. Third : the uncertainty on protection to land right of the most of the community. The second issue is under control following the commencement of UUPA (Basic Agrarian Law), but not with the first and third which have been continuing up to now. The existence of agrarian issues, mainly caused by the increasing needs of land, as the result of rapid increase of the population growth and the economic activities while the number of land and the potency of it is very limited. This situation has brought to land authority competitiveness, the land ownership, land-use and land utilization that end to definite conflicts of interest.The above condition initiated revitalizing to agrarian reform. This initiative actuated in the issuance of Indonesian Peoples' Advisory Assembly Decree Nr.: IX/MPR/2001 on Agrarian Reform and natural Resources management, to give basis and aims to evenhanded, sustainable and environmental-friendly agrarian reform and ensuring institutional strengthening to implement the program. 7. Priority Poverty and Disparity Alleviation 8. Objectives Development objectives: to promote sustainable economic development which contributes to poverty reduction, improved environmental management and improved land right for poor people, women and ethnic minority.

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Code No: T-01-05600-0505-067029 Project Goals: a. Land for welfare; b. Good Land Administration; c. Improving social economic condition of the people by strengthening rights to ownership and put content of a social function to the rights to ownership; d. Improving national product especially agricultural product to increase income and standard of living; e. Eliminating of land-lord and exemption to vast land ownership; f. Address even handed distribution on living resources to farmers in the farm of land in order to get justness on product sharing

g. Improving working spirits for peasant farmers by giving assurance to rights to land ownership; h. Improving working relation between the land owner and the peasant and agricultural and village revitalization and improving the welfare and living quality of farmers and farmers household 9. Activities Administration, Consultancies, Procurement of Goods, Training 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 200,000 0 0 0 200,000 2,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,200,000 2,200,000

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Code No: T-01-05600-0505-067030 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Land Rights Protection and Recovery in Post Conflict and Social Unrest Area : 36 months : DKI Jakarta : National Land Agency : National Land Agency

6. Background and Justification Within the last seven years in some areas of Indonesia, social conflicts and unrest have erupted triggered by such issues as separatism and etnic conflicts. The conflicts, some of them are wide-scale in character, have exploded in West Kalimantan, Central Kalimantan, Maluku, Central Sulawesi Province and Nangroe Aceh Darussalam. The social conflicts and unrest have deeply caused to some communities who lived and involved in the conflicts areas. They had to leave all their belonging behind including their land and life stock. Indeed, it was a sad reality since in the last view years such conflicts and unrest, within the wide range of their spectrum have erupted across the archipelago, which forced some people to live as refugees including former permanent settlers whole properties and belongings were destroyed.The social conflicts and unrests have physically separated the land from the people who legally own the land. Moreover, the social conflicts unrests have destroyed any related evidances, such as documents and other physical evidences of ownship, which legally bind the land with the particular owner either man or woman. The lands that were cultivated for decades suddenly are abandoned and unprotected. These could potentially come to the fore as time-bombs in forms of various land conflicts in the future. For the shake of the people who hold the legally rights to the land, there is an urgent need of protection and restoration of their rights through a simultaneous and comprehensive land protection and restoration programs. The project, therefore, will urgently need a serious commitment particularly for the aim of human rights protection of all peoples who live in the present conflict, post conflict and post social unrest areas. 7. Priority Poverty and Disparity Alleviation 8. Objectives The project aims to initiate the restoration of people life and protect their belongings in the conflict areas/post conflict areas through protection and restoration of their land rights. Through the project, land administration and land use and people empowerment could effectively be performed in those areas. T- 41

Code No: T-01-05600-0505-067030 The project goals are : a. To find out a policy framework for land rights protection and restoration of people land rights which were affected by the conflict or social unrest. b. To empower people who were affected by the conflict or social unrest through the restorstion of the use and administration of land rights in the areas. c. To protect people land rights in conflict areas/post conflict areas or post social unrest areas. 9. Activities a. b. c. d. e. f. Preparations Studies Agenda settings Pilot project Regulation formulation Land rights rehabilitation

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,161,000 0 1,161,000 129,000 0 0 0 129,000 1,290,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,290,000 1,290,000

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Bank Indonesia

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Code No: T-02-11300-0490-064040 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Capacity Building for Enhancing the Economic Indicators 36 months DKI Jakarta Bank Indonesia Bank Indonesia

6. Background and Justification Based on Government Regulation No. 2/2006 regarding to the procedures and mechanism for obtaining external funding (loans and/or grants), it is need to create a programmatic project, which has a medium term horizon. This project contains of several sub-projects that have the same ultimate goals. Therefore, it is called an umbrella project. Capacity Building for Enhancing the Economic Indicators is an umbrella project covering issues as follows. a. Improvement of economic and financial indicators. The existence of time lag on official economic and financial indicators, which are needed to analyze and assess economic and financial current and future condition, might reduce the accuracy and timeliness of analysis. To deal with that problem, prompt alternative indicators that can properly represent the economic and financial condition are needed. In addition to that, a development of non standard economic indicators are also needed to support a decision making process in macroeconomic policy. b. ITRS Improvement. International transaction reporting system (or ITRS) is one of the Data Sources to compile BOP and IIP Statistics. BOP statistics provides data on economic transactions between Indonesia and the rest of the world, e.g.: exports and imports of goods, foreign direct investment (FDI) in Indonesia, and travel services. An ITRS can provide comprehensive and timely BOP and IIP statistics. Bank Indonesia has developed the system gradually, beginning with Bank Reporting System (BRS) in 2000, Non-Bank Reporting System (NBRS) in 2001, and NonFinancial Corporation Reporting System (NFCRS) in 2002. Improvement is needed in several aspects such as speeding up the timeliness of the report and improving the data coverage and accuracy. c. ITS Improvement. The international trade in services becomes more significant. Services represent 20% of total world trade and account for the 2/3 of GDP.

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Code No: T-02-11300-0490-064040 Services cover several types of components that have their own complexity. Currently only few countries report services transactions in detail in accordance with the international standard (BPM). In order to provide accurate data, compilers need to have a good understanding on concept and methodology, and ability to communicate the data needed to data provider/source. Accurate data on international trade in services is needed in policy formulation. d. WR Improvement. Analytical studies have shown that the flow of remittances is the last influenced by economic downturn and remains a stable source of income. Remittances have been identified as the third pillar of development as their volume is second to foreign direct investment and higher than overseas development assistance. Analytical studies have shown that remittances contribute to poverty reduction in home countries through the optimalization of the fund for productive purpose. These are the reasons why remittances have become more important. Meanwhile, there are limited information regarding the remittances. Workers remittances data are estimated by using survey result combined with other reports from related institution. The accuracy of the data depends on the methodology used in estimation. With regard to the above condition there is a need to improve the statistics on workers remittances. The improvement will be acquired through the improvement of staff understanding on concept and methodology and the improvement of data quality by conducting survey on Indonesian workers. e. IIP Improvement. International Investment Position (IIP) is one of the external financial statistics. Indonesias IIP is a statistical statement that shows Indonesias stock of external financial assets and liabilities at a particular point. Indonesia has published the statistics since 2002 for end of 2001 data to meet the SDDS requirement. The purpose of the Special Data Dissemination Standard (SDDS) is to guide member countries in the provision to the public of comprehensive, timely, accessible, and reliable economic and financial statistics. IIP is compiled in accordance with international standard. However, it is important to improve the quality of this statistics. 7. Priority Employment, Investment, and Export T - 46

Code No: T-02-11300-0490-064040 8. Objectives The ultimate goals are to increase and strengthen human resource capability in Bank Indonesia and other line ministries on improving the quality of data generation and management. In particular, each sub project has objectives as follows: a. Economic and financial indicators. The objetive is to increase the skills and knowledge on formulating and analyzing economic and financial indicators to support monetary policy decision making process. The availability of prompt economic and financial indicators is expected to bridge the gap before figures of economic and financial indicators are officially published, either by Statistics Central Bureau or other related agency. These non-standard prompt indicators could be used to enrich the analysis or assessment of current or future economic and financial condition. In addition to that, prompt indicator could also be used to picture public expectation on inflation, exchange rates, and interest rate to enhance the formulation of monetary policy. b. ITRS The objective is to improve in the quality and coverage of the current system through the development of staffs understanding in the practical issues involved in the design, structure and operation of the data collection system. c. ITS The objective is to improve the quality of data on international trade in services (ITS). d. WR The objective is to improve data on workers remittances (WR). e. IIP The objective is to improve data on Indonesia International Investment Position Statistics (IIP) 9. Activities Activities in each sub-projects are as follows: a. Economics and Financial Indicators. (Duration 1 month) The scope of activities are as follows: 1) The expertise and experience on technical aspect to formulate economic and financial indicators to support monetary policy decision making process. 2) The expertise and experience on operating an application of economic and financial indicators as well as analyzing those indicators. Implementing Agencies: Bank Indonesia and Ministry of Finance. T- 47

Code No: T-02-11300-0490-064040 b. International Transaction Reporting System (ITRS). (Duration 1 month in a year) This sub-project covers training courses on ITRS in donor country/third country, which cover some activities, such as on the job training in the institution that is in charge with the ITRS, lectures, case studies, and visiting related institutions. Implementing Agencies: Bank Indonesia, Statistics Indonesia, Ministry of Finance, and Bappenas. c. International Trade in Service (ITS). (Duration 1 year) This sub-project covers training by donor/third country expert and conducting a survey. 1) Training by experts that include lecture and workshop in donor country/third country. 2) Conducting survey on international trade in services. The survey will cover respondents that are provider/user of the services. Implementing Agencies: Bank Indonesia, Statistics Indonesia, and Ministry of Trade. d. International Investment Position (IIP). (Duration 1 year) This sub-project covers: 1) Attachment program in donors country/third countrys institution responsible for conducting survey on international investment and disseminating international investment position statistics. 2) Conducting a survey on international investment position. The survey will cover enterprises as respondents. Implementing Agencies: Bank Indonesia, Statistics Indonesia, and Investment Coordinating Board. e. Workers Remittance. (Duration 1 year) This sub-project covers: 1) Training by donor/third country expert that covers lectures and workshops. 2) Conducting a survey on workers remittances. The survey will cover respondents that are Indonesian migrant workers and conduct in several pocket area in Indonesia and destination countries. Implementing Agencies: Bank Indonesia and Statistics Indonesia.

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Code No: T-02-11300-0490-064040 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,200,000 0 1,200,000 0 0 0 0 0 1,200,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,200,000 1,200,000

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Code No: T-02-11300-0490-064041 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Capacity Building for Enhancing the Role of Central Bank 36 months DKI Jakarta Bank Indonesia Bank Indonesia

6. Background and Justification Monetary policy communication and transparency are important and integral elements of an efficient, effective, and credible monetary policy. Transparency and effective communication are crucial to minimize conflicting and unexpected negative impacts for the central bank. In addition, lack of transparency could be harmful to the reputation of the central bank. Since 2005, Bank Indonesia has adopted a new framework in monetary policy and operation, with the sole target of achieving and maintaining price stability. This monetary policy framework encompasses four main areas: (i) the use of interest rate called BI-Rate as a policy reference rate, (ii) forward looking decision making process (iii) more transparent communication strategy, and (iv) strengthened policy coordination with the government. Related to that, Bank Indonesia needs to deepen its understanding on those areas, especially on the monetary policy operation using interest rate as an operational target, liquidity forecasting, and instrument mix to boost the effectiveness of monetary policy. 7. Priority Employment, Investment, and Export 8. Objectives a. To enhance the role of Bank Indonesia b. To enrich the study on monetary policy aspects c. To improve and to strengthen the capacity to BI staffs 9. Activities a. The Role of Central Bank in Providing an Accurate Picture of Business TrendThrough Implementation of Business Survey : The Case of Indonesia 1) Training includes lecture, workshop and on the job training program 2) The expertise will cover consultancy.

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Code No: T-02-11300-0490-064041 b. Enhancing Policy Strategy in Entering International Cooperation and Commitments 1) Training in Impact Studies of Entering International Cooperation/Agreements (such as Analyzing the Impact of Liberalizing Trade and Financial Sectors) on Domestic and Regional Economies. 2) Training in Financial Diplomacy and Negotiation Skills. 3) Attachment program at related international institution/other central bank and related government agencies of developed country c. Training Course on Management of Trade Finance - The scope of work will include training, courses, development study, or comparative study in various countries. d. Corporate Debt Management : Best Practice on the Regulation of Prudential Corporate Debt Management - The scope of work will include training, course, development study, comparative study or attachment in various countries regulatory institutions. e. The Role of Central Bank Transparency and Communication in Providing an Effective Monetary Policy: The Case of Indonesia - To learn the expertise, experience, and current knowledge on the transparency and communication strategy from training and attachment program f. The Role of Central Bank in Providing an Accurate Picture of Business Survey of Small and Medium Enterprises (SME): The Case of Indonesia 1) Training includes lecture, workshop and on the job training program 2) The expertise will cover consultancy.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,240,000 0 2,240,000 0 0 0 0 0 2,240,000 T- 51 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,240,000 2,240,000

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Ministry of Home Affairs

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Code No: T-04-01000-0101-067065 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Decentralized Governance Management : 48 months : National wide : Ministry of Home Affairs : Local Government of Natural Resource

6. Background and Justification Indonesia has rich of biodiversity and natural resources but the management of those natural resources has not been better exploited even the management tends to be exploited unwisely without considering environment sustainable principles. Other reasons are as follows: a. Natural resources still become a potential source for economic development in the regions; b. Natural resouce management has become regional authority since law 32/2004 legalised c. Natural resource depletion and environmental degradation are very high every year due to uncontrolled exploitation of natural resources for economic development; d. Tools are required for considering natural resource accounting and capability aspects which support development process (planning-implementing-controlling). 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives The project has the following main objective: a. To increase the capacity building of local government on natural resource management in the autonomy are based on law 32/2004 and support development sustainability. b. To develop the capacity building of local government in natural resource management and emphasize on the implementation of natural resource management aspects in order to be more effective and efficient in long term or short term natural resource management activities.

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Code No: T-04-01000-0101-067065 9. Activities a. Policy analysis and institutional strengthening 1) To analyse policy and law frame work and their impacts for natural resource management. 2) To analyse rights, roles, responsibility and coordination among government institutions in term of natural resource management. 3) To support MoHA in facilitating and controlling decentralised processes for natural resources management. This emphasises on recommendation for (a) nstitutional strengthening and the development of local policies, (b) ensuring the working of coordinative functions among governance levels. b. To cooperate with local government in preparing environmental service standards which are adjusted to potency and condition of regions. c. Natural resource development planning especially for enhancing capacity of spatial planning processes through participatory characteristic, information empowerment and law enforcement including: 1) Participatory approach related to spatial planning, regional development, regristration processes and community income sources to identify lesons from experience regarding integrated bottom up and top down approach including conflict management. 2) Application of strategic environmental assessment, natural resource accounting, valuation for economic natural resource and land capability to strengthen spatial planning processes. 3) All of items above consider reality of institutions which are limited from human resources, infrastructure, budget and insentif during long term or short term activities. d. To diseminate methods or tools to local governments for planning and participatory regristration including KLS, NRA, VESDAL, IL, to make natural resource management more effective and controlled. e. To support trust among stakeholders in sharing information on natural resouces and environment. f. To develop website for comprehensive information regarding decentralisation of natural resource management including base data of natural resource, for example the success of natural resource management, participatory approach, efficient relationship between top down and bottom up approach and its case studies.

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Code No: T-04-01000-0101-067065 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 50,000,000 0 50,000,000 7,500,000 0 0 0 7,500,000 57,500,000

0 57,500,000 57,500,000

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Code No: T-01-01000-0101-067066 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Integrated Regional Development Planning For Remote Island in Indonesia : 48 months : Bangka Belitung, Central Java, East Java, South Sulawesi : Ministry of Home Affairs : Ministry of Home Affairs

6. Background and Justification Indonesia is an archipelago country that its geography has a strategic location between Asia and Australia. On this era of globalization trend, the position of Indonesia in the Asia Pacific rim will have advantage role. As a state that has about 75% of its territory are sea areas and 25% are land areas, which consist of more than small island. Indonesia has comparative and competitive advantages from potential of its small island, both renewable and nonrenewable natural resources. However, the large area of unity state of Republic Indonesia that has wide location of its small island will cause very expensive cost of infrastructure development. Due to its remote location the small island do not have access to provide some infrastructure for their communities, such as seaport and sea transportation. It is difficult to develop the big potential of its natural resources, such as fishes, mangrove forest, agriculture product, and eco-tourism resources for the people welfare. Based on some new regulation about enhancement of autonomy for managing their development activities. However, up to now there is no guide line regional development for remote small plan and to prepare development guidelines for remote small island as an umbrella for development implementation on the small island in Indonesia. 7. Priority Poverty and Disparity Alleviation 8. Objectives The project has the following main objective: a. To formulate an integrated development plan which be focused on sustainable use of natural resources in a remote small island in Indonesia. b. To prepare development guidelines for the remote small island; and c. To conduct a prefeasibility study for the selected group of island as development model of the small island in Indonesia. 9. Activities a. Phase I : Preparation of profile for each four selected small island, the profile will be used in development potential and constrain for each selected small islands. The profile not only includes the coasts and resources but also terestrial such as forest, soil and fresh water resources and qualities. T - 58

Code No: T-01-01000-0101-067066 The profile will be pre manner: 1) To asses the socio-economic, natural resources, environmental quality, and infrastructure condition. 2) To develop natural resources inventory, which includes natural resources map for each small island. To analyse potentials and constrains. b. Phase II : Formulation of integrated development plan for a selected small island. The development plan include infrastructure development plan as well as natural resources conservation plan in order to attain the apropriate for the people empowering the local community leadership/ownership. The plan will be formulated. c. Phase III: Preparation of development guidelines for the selected small island. The development guidelines will be formulate a regional development plan, which includes terrestrial an coastal use plan by each municipality in such maximizing effective use of the natural resource. The guideline will be prepare the following manner: a) to identify criteria for small islands; b) To classify the small island into several catagories for regional development, which resources conservation based on the selected development criteria; c) To prepare the institutional arrangement of the development plan: and d) To formulate development guidelines of the small island. a. Phase IV: Pre-feasibility study for four selected small island: a) To identify the project/program to conduct the priority project/program for each small island development potential; b) To prepare development action plan for prepare feasibility for each development action project; d) To prepare implementation plan, which includes overall cost selected project/program. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 750,000 0 0 0 750,000 5,750,000 T- 59 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,750,000 5,750,000

Code No: T-01-01000-1005-067067 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Capacity Development for Regional Development and Community Empowerment in North Eastern Indonesia : 48 months : Sulawesi : Ministry of Home Affairs : Regional Development Planning Agency of provinces in Sulawesi

6. Background and Justification Regional development that has thus far been carried out in Indonesia has generally already been able to attain high economic growth, accompanied by improvements in the quality of life and standard of living of the population. On the other hand, the achievements have differed from one region to another. Discrepancies among regions are very evident, especially between Java and regions outside Java, and between the regions in the Eastern Part of Indonesia and regions in the Western Part of Indonesia. The problem of inter-regional discrepancies is still s problem that requires attention in the 2005-2009 Medium-Term Development Plan. The data released by the Office of the Ministry for Left-Behind Regions in February 2005, shows that out of the total of 199 regencies/municipalities that are categorized as left-behind regions, 123 or 62 percent are located in the Eastern Part of Indonesia. With regard to the poverty rate, 23.3 percent is in the Eastern Part of Indonesia compared to only 16.66 percent at the national level. In Sulawesi there are 6 provinces, namely South Sulawesi, South East Sulawesi, West Sulawesi, Gorontalo, and North Sulawesi, which have a significant influence in the social and economic activities of the Eastern Regional of Indonesia. It is expected that these provinces can cooperate with one another in carrying out regional development activities in this decentralization era. For assuring that the maximum impact can be attained to regional development, it is essential to apply the integrated human resources approach. 7. Priority Poverty and Disparity Alleviation 8. Objectives Objective of the project It is expected that this objective can be achieved by the completion of the project. The detailed quantitative indicators, if possible. Development of the capacity of local population in the regions as a whole in the regional development of the six provinces in Sulawesi. T - 60

Code No: T-01-01000-1005-067067 9. Activities (The specific activities for attaining the Output of the project through the more effective use of the Inputs) a. Enhancing the capacity in planning in regional development and in community based development (CBD) 1) Developing the CBD training including the making of the CBD facilitation manual 2) Seminar on regional development on the basis of local initiaves to the executive staff in the regional government 3) Training on regional planning methodology for personnel of regional governments, training in the latest analytical tools, planning, socialization/institution, monitoring and evaluation, etc.. 4) CBD facilitation training of facilitators 5) Training in action plan on regional development 6) Advisor on regional development planning and action plan made by the regional government 7) Post Graduate study on regional development planning that will be conducted by UNHAS (University of Hasanudin) 8) Training of counterparts that will be conducted in Japan in the first and third years of the project. b. Enhancing the capacity in implementing regional development and the CBD through this model project. 1) Selection of the model project 2) Facilitating stakeholders in the model project on analysis in the current situation and to review the final plan. 3) Supporting institutions and coordination among stakeholders 4) Supporting and giving recommendstions on implementation of the model project 5) Supporting the monitoring and evaluation of the model project c. Supporting activities 1) Survey on cases of good practices (GPC); selecting the GPC in Eastern Part of Indonesia 2) Routine recommendations on GPC 3) Supporting monitoring and evaluation of the GPC

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Code No: T-01-01000-1005-067067 4) Conducting training, seminars, and comparative studies in the model project and GPC 5) Development of a database in the GPC and human resources network 6) Compilation oif the syllabus and textbooks in the training that is conducted in the project 7) Expanding to other regions of CBD activities and project activities with the related organizations (issues through Bulletins), etc. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,800,000 0 6,800,000 0 0 0 0 0 6,800,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,800,000 6,800,000

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Code No: T-01-05500-0106-068480 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Regional Development and Strengthening Decentralization 36 months National wide Ministry of Home Affairs Regional Development Planning Agency of provinces in Sulawesi

6. Background and Justification Regional development is an integral part of national development and attaining the aims of national development. Regional development needs to be adjusted to the potentials and resources of each of the regions. There is no doubt that each of the regions has their own specific characteristics, in terms of their potentials as well as their resources. In addition to taking into account the potentials of the regions, it is also necessary to be aware of the importance in ensuring the sustainability of their development. On the other hand, it is also necessary to take into account that the discrepancy of potentials and resources among regions is relatively high. Therefore, it is necessary to make efforts for increasing the potential and resources of each region, particularly the left-behind regions. Strengthening the capacity of regional governments is also important for enhancing public services to the local communities. Such strengthening of regional capacity is expected to in turn positively affect the process of decentralization and regional autonomy. The implementation of decentralization and regional autonomy policies has thus far made much progress. Nevertheless, in attaining the goals of carrying out decentralization and regional autonomy, many problems and constraints are still being faced. One of the constraints is the still inadequate government capacity of the regions. Thereby, it is necessary to strengthen the capacity of the regional governments. It is expected that by such strengthening, the welfare of the population, especially in the regions, can more quickly be increased. 7. Priorities a. Infrastructure b. Poverty and Disparity Reduction c. Education and Health 8. Objectives a. Developed potential and resources of the regions b. Capacity building of regional governments in reducing poverty and in reducing inter-regional discrepancies T- 63

Code No: T-01-05500-0106-068480 c. Increased capacity of regional governments in the provision of public services. d. Increased empowerment of the people in regional development. 9. Activities a. Development of public facilities b. Community empowerment c. Dissemination of government policies d. Equipment 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ 0 : US$ 100,000,000 : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 100,000,000 0 0 0 0 0 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 100,000,000 100,000,000

: US$ 100,000,000

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Ministry of Energy and Mineral Resources

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Code No: T-03-02000-0405-066071 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Electricity Power and Energy Policy Project 36 months DKI Jakarta Ministry of Energy and Mineral Resources Ministry of Energy and Mineral Resources

6. Background and Justification Since the financial crisis of 1997, demand of energy power in Indonesia has grown by some 7% annually, and is expected to continue growing at this rate over the coming decade. At this rate, power demand will double every 10 years or so. On the other hand, only about 54% of the households throughout the country have access the electricity. In order to these issues on electric power and energy sector, the Directorate General for Electricity and Energy Utilization is setting up necessary implementing regulation, codes, guidelines, and policies. 7. Priority Infrastructure 8. Objectives a. To set a power development policy; b. To establish electricity regulation; c. To establish rural electrification by renewable energy. 9. Activities a. Project cooperation on the development of training for environmental monitoring of power plant (electricity inspectors); b. Update of transmission development plant of optimal electric power in Java-Bali; c. Update of hydropower potential resources ; d. Advisor for electric power and energy policy; e. Education and training project for policy development and energy management; f. Project cooperation on development of training for environmental monitoring of power plant;

g. Study on energy demand of Indonesia (mid and long term); h. CP training for long term expert on improvement rural electrification project.

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Code No: T-03-02000-0405-066071 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,560,000 0 3,560,000 30,000 0 0 0 30,000 3,590,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,590,000 3,590,000

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Code No: T-03-02000-0405-066073 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Development of Coal Energy in Indonesia : 36 months : DKI Jakarta : Ministry of Energy and Mineral Resources : Ministry of Energy and Mineral Resources

6. Background and Justification Coal deposits are widely distributed throughout the Indonesian archipelago with total resources amount up to 57.8 billion tons. Coal deposits located in the coalfields of Sumatera and Kalimantan regions. Sumatera contains 54% of the total Indonesia measured and inferred coal reserves. South Sumatera owns the most resources with the amount of 26 billion tones or 81% of total resources in Sumatera. Coal deposits are classified as lignite of 58%, sub-bituminous of 27%, bituminous of 14% and small amount (<1%) of anthracite. Lignite and sub bituminous which are characterized as low rank coal (LRC) are still under-utilized, due to its inferior properties such as high moisture content, low calorific value, low thermal efficiency, rich in oxygen and a high tendency for spontaneous combustion. Therefore, LRC needs to be upgraded and to make its characteristics resemble with high rank coal to fulfill domestic and international markets. Although the value of upgraded coal per its ton will increase, but the question is whether LRC can be upgraded in to foam energy, which is economically transportable and safe in storage. 7. Priority Infrastructure 8. Objectives a. To increase the value of Indonesia low rank coal; b. To prevent the secure and stability of energy supply; c. To develop a comprehensive database for the coal basins of Indonesia. 9. Activities a. Inventory and evaluation of underground coal mine prospect in Indonesia 1) Reviewing all available subsurface coal potential data to identify target investigation; 2) Detailed exploration and evaluation to the most prospective underground mine area; 3) Drilling the most promising area in the basin to find out its potency; 4) Data processing, interpretation and reporting.

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Code No: T-03-02000-0405-066073 b. Development of coal liquefaction pilot plant in Indonesia 1) Engineering design of pilot plant scale; 2) Construction of pilot plant scale; 3) Operation of pilot plant; 4) Technical and economical evaluation of the process; 5) Feasibility of commercial plant c. Development of Upgraded Brown Coal (UBC) demonstration plant in Indonesia 1) Designing and engineering of UBC demonstration plant; 2) Construction of demonstration plant; 3) Operation of demonstration plant; 4) Feasibility study for commercial operation. d. Coal Bed Methane (CBM) Study in Indonesia 1) The study will be collecting samples employing slim drilling and coring of coal seams and roof rocks samples (field work); 2) Laboratories work (measurement, interpretation of data and the preparation of the final report) 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 22,300,000 0 22,300,000 45,000 0 0 0 45,000 22,345,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 22,345,000 22,345,000

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Code No: T-03-02000-0405-066076 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Geothermal Energy Development in Indonesia : 36 months : DKI Jakarta : Ministry of Energy and Mineral Resources : Ministry of Energy and Mineral Resources

6. Background and Justification Local Governments are going to replace diesel power gradually with geothermal electric power. Due to the decreasing in efficiency of power plants and still dependency on the diesel power plants, the electricity price is significant expensive. This high cost of fuel can be reduced by improving geothermal energy sources for power plants in several areas, including for the small scale geothermal power plant especially to fulfill electricity supply in small isolated system. Concern on environment and global warming effect, Indonesia has already ratified the Kyoto Protocol since 2003, and its inline with our National Energy Policy, 2004-2020. In part of eastern Indonesia, the potential of geothermal prospect area is sufficient to be developed as the small scale of geothermal power demonstration plant with the capacity of 5 MW leading to 28 MW. 7. Priority Infrastructure 8. Objectives To develop geothermal energy in Indonesia with development of a small scale of geothermal power demonstration plant. 9. Activities a. Geothermal Energy Development for Electric and Non Electrical Used in Indonesia 1) Developing a small scale geothermal plant; 2) Dissemination of the small scale geothermal plant technology b. Training for Implementation of Master Plan Study for Geothermal Power Development in Indonesia

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Code No: T-03-02000-0405-066076 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 150,000 15,000 0 0 0 15,000 1,015,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,015,000 1,015,000

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Code No: T-03-02000-0405-066589 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Supporting for Mineral Resources Development : 36 months : National Wide : Ministry of Energy and Mineral Resources : Ministry of Energy and Mineral Resources

6. Background and Justification Mineral resources have an important role in the national economy. This is reflected by the significant role of mineral resources in supporting the supply of energy, foreign exchange earnings of the state, raw material for industry, supporting the regional development, creating employment opportunities, and in inducing the growth of other sectors. The exploration and exploitation of mineral resources need to be carried out wisely, so that the economic value of such mineral resources can be utilized while environmental degradation due to the exploitation of such mineral resources can be minimized. In order to optimize revenue from mineral resources it is necessary to have institutional and policy support as well as a conducive investment climate for the exploration and exploitation of mineral resources. Support for the development of natural resources is needed for anticipating several problems, among others the decline of crude oil production, the inadequate investment in oil and natural gas, and the still not yet optimal exploration and exploitation of mineral deposits that have economic value 7. Priority Infrastructure 8. Objectives a. Supporting the development of mineral resources for supporting the Indonesian economy. b. Developing policies on the management of mineral resources. c. Upgrading human resources managing mineral resources. 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops on women participation in development program c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution f. Research.

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Code No: T-03-02000-0405-066589 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 50,000,000 0 50,000,000 0 0 0 0 0 50,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 50,000,000 50,000,000

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Ministry of Law and Human Rights

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Code No: T-06-01300-0303-062079 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Industrial Property Right Administration : 24 months : Tangerang- Banten : Ministry of Law and Human Rights : Directorate General for Intellectual Property Rights, Ministry of Law and Human Rights

6. Background and Justification Directorate General for Intellectual Property Rights (DGIPR), Ministry of Law and Human Raights is the governmental organization that has mandate concerning Intellectual Property Rights (IPR). The IPR system in Indonesia can be strengthened by increasing public awareness and law enforcement. Dissemination of IPR information is one of the effective methods to enhance IPR enforcement. On the other hand, establishment of e-filing system of IPR is required, since the total number IPR applications has dramatically increased in recent years. The DGIPR needs the formation of such including human resource development. Through the establishment of e-filing system, staff of the DGIPR will learn skills as elaborated below: a. How to correspond to rebuilding of procedure of IPR administration b. How to manage information of IPR applications The financial target of this project is to shorten the term of date entry and to keep accuracy of information. Moreover the e-filing system that will be established in the project should be integrated to the existing IP administration system. Learning to modify the system so as to corresdond with the newly created functions is one of the skills that essential for being developed by the DGIPR itself. 7. Priority Law, corruption eradication, and bureaucracy reformation 8. Objectives a. To protect and enforce an appropriate environment for all stakeholders. b. Human resources development related to the following skills: 1) To development of e-filing system; 2) To modify and integrate of system; 3) To operate system.

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Code No: T-06-01300-0303-062079 9. Activities a. b. c. d. e. Preparing office room and other necessary facilities; Allocation of personnel for the project; Allocation of the budget for project. Responsible person in charge of this project Budget for Joint of saving seminars in 8 cities per year

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,700,000 0 3,700,000 0 0 0 0 0 3,700,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,700,000 3,700,000

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Code No: T-06-01300-0303-062080 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Border Control Project with Biometrics 24 months DKI Jakarta Ministry of Law and Human Right Directorate General for Immigration, Ministry of Law and Human Right

6. Background and Justification As of now, a managed database which record, stores and monitors the entry/departure of people crossing the territory of the republic of Indonesia is not available. Therefore, tracing the record or marching/monitoring immigrants at the border, or mapping out the illegal immigrants could not be performed systematically. Immigration check is also conducted manually, which means that it is not supported by a systemized authentication method such as biometrics. The condition will therefore lead to an insufficient of inaccurate identification upon travelers that many endanger or threat the security of Indonesia. By increasing demand for reliable and secure border control system around the nations, especially after the terrorists attacks on September 11th, Bali Bombs in 2002 and 2005, Jakarta Bombs that significantly declined Indonesians tourism and severely damaged foreign investment. Indonesia considers establishing a new border control system as the most important agenda. Master database system for border control, utilizing biometric identification is certainly one of the solutions for the on going issues and threat to the national security and human safe. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. Overall Goal: The national security and safety for the citizens and tourist will be significantly improved. This will lead to the recovery of the tourism industry and foreign investment and promotion hereafter. b. Project Purpose: A new border control system, which enables to identify all the traffic (include and outgoing, foreigners and Indonesian citizens) in appropriate manner, shall be implemented at all the border control station over whole Indonesia. T- 79

Code No: T-06-01300-0303-062080 Through incorporation with the e-Passport project, applicable biometric identification technology such as facial recognition and fingerprint identification shall be implemented, in order to match and authenticate all the travelers in most accurate manner, and identify any threats most appropriately. Exiting system such as e-Passport, ECS, Visa and Permits project should be linked and integrated into the Border Control project. Since this project will be a huge project, covering all the border control (land, sea or air transportation) over Indonesia. 9. Activities a. Creating the investigation system for citizen or non citizens who enter or exit the Indonesian territory by capturing data image method, biometric data, and scanning travel document; b. Creating the communication network of national data between the central office with the technique unit in district/region, immigration check point and cross border/lines post in large volume; c. Creating the central database which gathering and doing the matching data upon the people who come/arrive and go/depart to and from Indonesian territory; d. Creating the integration from many sub system that have developed, such as : i) sub system of passport data ii) sub system monitoring of traffic people iii) sub system of exit and entry prohibition iv) sub system of visa and permit stay 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 14,471,000 0 14,471,000 6,537,000 0 0 0 6,537,000 21,008,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 21,008,000 21,008,000

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Ministry of Culture and Tourism

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Code No: T-02-04000-0801-061520 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : Project for Tourism Product Development : 24 months : Lake Toba (North Sumatra), Siberut, Kep. Mentawai (West Sumatra), Tana Toraja (South Sulawesi), Bunaken (North Sulawesi) : Ministry of Culture and Tourism : Directorate General for Tourism Destination Development, Ministry of Culture and Tourism

6. Background and Justification Travel and Tourism encompassing transportation, accommodation, catering, attraction, recreation and services for visitors- are one of the worlds highest priority industries and employers. (Worldwide, in 2006, it is expected to post US $ 6.4 trillion of economic activity (Total Demand) and this is forecast to grow to US$ 10.7 trillion by 2015). More international market trend to natural and ecotourism attraction. In addition to its mega diversity in biological resources, Indonesia also offers a diverse geographical and geologic features to be explored. The caves are among the potentials for ecotourism, not only as natural wondes but also as historical assets. Diversity of cultures which include ethnic groups, religions, traditions and all other dimentions of culture are additional wealth to the richness of Indonesia nature. Whether it is considered as an industry, tourism is multi sectoral undertaking. The realization of tourism in any place will involve many stakeholders : the government (central as well as local), private enterprises with varied scales and types of businesses, communities, NGOs and the whole range of professionals. Planning and project development coordination are particularly necessary to ensure that all these elements are developed in an integrated manner to serve tourism as well as general needs. Tourism development is aimed at increasing social welfare (generate economic benefits, income, employment) to increase link between countries and to build national character. How ever, tourism can also generate various problems such as the loss of potential economic benefit and local economic distortions, environmental degradation, the loss of cultural edentity and integrity, and cross-cultural misunderstandings. In order to optimize the benefit of tourism development and to prevent any problems, good planning and careful management of tourism is essential. Careful planning will result the optimum type and level of tourism development. In many areas tourism is still a relatively new type of activity so tourism planning should consider the local social, culture and economic condition. Tourism has to be developed gradually based on the condition of all aspects affecting it.

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Code No: T-02-04000-0801-061520 The Ministry of Culture and Tourism Republic of Indonesia as the technical institution responsible in facilitating and coordinating tourism development in Indonesia has prioritized tourism development in 5 provinces as follows : West Sumatra, North Sulawesi, West Nusa Tenggara and East Nusa Tenggara. This prioritizing is aiming to maintain that the tourism resources being used effectively and focused. Furthermore, the Ministry of Culture and Tourism has selected four project sites, which are areas of Toba, the Siberut, Tana Toraja and Bunaken. The selection of these four sites as the pilot sites is aimed to develop tourism product for their lives by their courage through giving technical assistances of other country experiences. 7. Priority Employment, Investment, and Export 8. Objectives Overall Goal: To provide increased foreign exchange earnings, income, employment and stimulus to other economic sectors through the controlled development of international and domestic tourism, which maintain sustainable use of tourism resources and assist in conservation of environmental and cultural heritage. Project Purposes: a. To provide the framework and guidelines for short, medium and long term comprehensive tourism development in the study areas b. To enforce capacity of tourism product development included local community and government to deal with the international and domestic market c. The tourism product are promoted to Japanese people by Indonesian Tourism Office in Japan. 9. Activities a. To review the present development policies and regulations. b. To do field survey and secondary research tourism potential and general aspects. c. To review the present development plans. d. To evaluate the existing and potential tourism attraction and related activities. e. To do field surveys of accessibilities and other transportation infrastructure, and accomodation and other tourism facilities and services. f. To do field surveys of the characters domestic and international tourists.

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Code No: T-02-04000-0801-061520 g. To determine the market targets and segmentation. h. To determine projection of type and number of service and activity required. i. To integrate the analysis of environmental, sociocultural, and economic characteristics, tourists attractions and activities, transportation and other infrastructure system, and existing tourism development patterns. To identify the major opportunities and constrainsts for tourism development during short medium and long term periods.

j.

k. To formulate the recommendation for any improvements required to present facilities and services and related infrastructure to adequately serve the desired present tourist markets. l. To empower the local people in the field of tourism through conducting some trainings related in tourism product developments.

m. To promote the tourism products. n. To hold workshop on tourism product development plan and promotion strategy. o. To share informationof the developing products to Japanese tourism trades. p. To publish and distribute promotion brochures of the developed products. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 80,000 0 0 0 80,000 1,080,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,080,000 1,080,000

T- 85

T - 86

Ministry of Forestry

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T - 88

Code No: T-04-02900-0504-065083 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : Study for Developing Aforestation/Reforestation CDM (AR-CDM) Project Design Document : 12 months : Lampung/Way Kambas National Park, West Kalimantan, Central Kalimantan, East Nusa Tenggara, West Nusa Tenggara, and Papua : Ministry of Forestry : Ministry of Forestry

6. Background and Justification Indonesia has ratified the Convention on Climate Change and Kyoto Protocol to contribute in reducing Green House Gas (GHG) emission. In the forestry sector, Indonesia as developing country can implement it through AR-CDM mechanism. This mechanism is still in line with the five priorities of the Ministry of Forestry, especially policy no. 3 Rehabilitation and Conservation of Nature. The Ministry of Forestry as a focal organization is responsible for forestry administration in Indonesia and also plays a key role of AR-CDM implementation. To accommodate the implementation of AR-CDM project, CDM-LULUCF Team was established. This team is in charge with discussion and problem solving related to ARCDM and making necessary advice to the Minister as an interagency organ. Directorate of Environmental Service and Eco tourism Utilization is responsible technically for the utilization of nature tourism as well as environmental services. One of forest environmental services that has been developed by the Directorate is carbon trade. Yet, legal instrument and human resources on carbon trade are still very limited. A number of regulations have been formulated. On the other hand, capacity building mainly for human resources is still lacking. AR-CDM as one of mechanism of carbon trade is of important to be understood in term of its process. Therefore, study on the development of AR-CDM PDD will be advantageous. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. Counterpart organization able to build its capacity to develop project design document of AR-CDM b. Designated National Authority (DNA) able to build its capacity to approve proposed AR-CDM Project T- 89

Code No: T-04-02900-0504-065083 9. Activities a. To develop Project Design Document of Afforestation and Reforestation CDM (AR-CDM) in the following procedures : 1) To provide seminar for the candidates of project participants of AR-CDM 2) To determine the project participants of AR-CDM Project 3) To identify the project site/boundary of AR-CDM 4) To develop baseline methodology of AR-CDM 5) To develop monitoring methodology of AR-CDM 6) To develop project design document of AR-CDM 7) To make manual for developing project design document of AR-CDM 8) To build database for developing design document of AR-CDM 9) To develop marketing strategy b. To develop criteria for evaluating whether or not 1) the proposed AR-CDM project contributes to sustainable development 2) the proposed AR-CDM project is not a diversion of ODA 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 70,000 0 0 0 70,000 1,070,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,070,000 1,070,000

T - 90

Code No: T-04-02900-0405-065085 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Development of Sustainable Forest Management : 36 months : National wide : Ministry of Forestry : Ministry of Forestry

6. Background and Justification National forestry development is one of the important issues in conducting sustainable development. Since early 90s, particularly since the Earth Summit held in Rio de Janeiro, Brazil, demands for practices of sustainability of environment have been intensified. This has also been applied to internalize environmental issues to international trade. Consumers have been more sensitive and aware to such issues and are demanding that marketed products should come from sustainable and well-managed resources and processed in an environmentally-friendly manner. This has also been applied to timber and its derivative products, including those from tropical producing countries. In anticipation to such situation, there have been many initiatives developed to support achievement towards sustainable development, among others through development and implementation of forest certification as an instrument to promote sustainable forest management. Sustainable forest management required valid and reliable information. The information among others pertain to forest resources condition and change including growth and yield and timber volume. Valid and reliable information can be gathered by conducting forest inventories, which are supported by satellite imagery data. Strengthening the structure and system of field inventory is based on Temporary Sample Plots (TSP) and Permanent Sample Plots (PSP) measurements. There were 2.735 TSPs and PSPs and 1.192 PSPs have been reenumerated for the whole of Indonesia and for all land cover types. Forest stratification was done based on satellite imagery data interpretation and GIS database. The stratification will be used to identify forest type, land use category, forest condition, monitoring forest vegetation cover, etc. Several new enumerations will also be conducted to complete the data. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries

T- 91

Code No: T-04-02900-0405-065085 8. Objectives a. To develop an integrated national forest inventory system and forest resources monitoring system. The system will collect and manage information concerning forest resources condition, land cover data, etc. to support decision makers, forestry planning, forest management at national level. b. To get most recent and reliable data of forest cover change periodically in all over Indonesia from many sources of data; c. To develop and improve the standard (criteria and indicators) of schemes of certification of sustainable forest management in Indonesia; d. To increase the competancies of forestrys stakeholders in Indonesia in the area of sustainable forest management. e. To develop consultation and coordination mechanism by establishing a proper networking system throughout the country. 9. Activities a. Protecting Globally Significant Biodiversity 1) To develop mechanism to predict the likely impacts of climate change, to plan management and policy interventions accordingly, at natural world heritage site level and nationally; 2) To undertake corrective actions to reduce the impact of inevitable climate change and to assess the viability of preventive actions to mitigate and offset the effects of climate change. b. Ecosystem Management on Biodiversity Conservation. c. Strengthening the Buffer Zone of the Ecosystem Areas. d. National Forest Inventory II 1) Design the data collection system on forest resources, and data integration methodology of field data measurement, remote sensing data and GIS.which is suitable to the forest dynamic. 2) Develop and manage the forest resources database at head quarter and regional offices. 3) Disseminate forest resource information conventionally and electronically. e. Improvement on Practices towards Achievement of Sustainable Forest Management in Indonesia 1) Analysis, focus group discussions, seminars, workshops, field visits, and other related activities towards improvement of procedures, mechanism and standard (reiteria and indicators) of national initiatives of sustainable forest managemant certification system for natural production forests, plantation forests, community-based forest managemant (CBFM), and those for the chain of custody (CoC) or timber tracking systems

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Code No: T-04-02900-0405-065085 f. g. h. i. j. Support to Strengthen the National Forest Program. Participatory Management of Mangrove Forest in Indonesia. Protecting the Mahakam Lakes and Wetland. Advisor for Facilitating National Strategy on Forestry. Trainings, seminar, workshop, and other related activities to improve capacity of stakeholders in central, district and municipal level upon sustainable forest managemant practices, verification of sustainability and legality of forest products, and other related topics. k. Facilitation in the development of institutions in forest management, and implementation of processes towards implementation of certification of sustainable forest management or phased- approach to forest certification, primarily to small and medium scale enterprises as well as communities practicing community-based forest management.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 30,230,000 0 30,230,000 3,882,000 0 0 0 3,882,000 34,112,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 34,112,000 34,112,000

T- 93

Code No: T-03-02900-0504-065090 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Utilizing Information Technology in Forestry : 36 months : Kalimantan Island : Ministry of Forestry : Forestry Planning Agency, Ministry of Forestry

6. Background and Justification There are needs to obtain reliable and accurate dynamic forest resource inventory to maintain regular (e.g. annual) monitoring on forest growth and the forest potencies linked/related to the latest optical and radar remote sensing technologies. The forest resource inventory data problems are not regularly updated and there are limited growth and yield data as problems on sharing or accessing data. There are many tools to access the forest covers data and the Ministry of Forestry needs to choose the reliable and economical tools to get the optimum value of Indonesia forest cover change. The major strategy is to assess the use of the latest technology for improving technical capabilities and capacities for dynamic forest resource inventory. The updating of hardware and software of Remote Sensing and GIS are needed for the data processing of forest cover in Indonesia. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives a. To perform the decentralization and integration of dynamic forest resource assessment amongst national and local levels (i.e. province and district) b. To improve the transparencies on the accessibility of the forest management unit information (e.g. forest growth, annual allowable cut, diversities of flora and fauna, detailed settlement mapping) 9. Activities a. Using satelite imagery for forest tree improvemnet: 1) Providing local workshops or seminars 2) Providing staffs to be trained and attached in the project as counterparts 3) Providing administration supports

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Code No: T-03-02900-0504-065090 b. Strengthening of GIS And Remote Sensing of BABLAN: 1) To buy new sophisticated computers, remote sensing and GIS soft wares. 2) To upgrade or develop the GIS and remote sensing laboratory in the central and regional offices 3) To buy additional tools like : GPS receivers, digitizers, plotters, etc 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,350,000 0 6,350,000 1,250,000 0 0 0 1,250,000 7,600,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 850,000 6,750,000 7,600,000

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Code No: T-05-02900-1005-065095 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agencies : Human Resources Development on Forestry Sector : 36 months : National wide : Ministry of Forestry : a. Ministry of Forestry b. Ministry of Marine and Fisheries c. Ministry of Environment

6. Background and Justification About 70% of Indonesias protected areas and regional natural resource conservation offices (so-called UPTs) are now headed by conservation and watershed management specialists trained between 1978 and 1992 by the SECM. However, the 477 middlemanagers are retiring and passing away at an increasing rate (now 34%), leaving keypositions in Indonesias conservation management system to less-experienced, and lessequipped personnel. Decentralization of government authority to the province especially regency/district level, greatly expanded the number and nature of stakeholders in biodiversity conservation, and requires increasingly more and better skilled biodiversity conservation managers to face the new and different challenges. district- level managers require new and different competencies to operate in a localized political economy of green and blue spaces. As a result, districts are now tasked with managing local natural resources except protected areas but have few skilled people and very little experience doing so. Pas now resumble central islands in a local sea with negligible integration or even meaningful dialogue, between conservationmanagers and district governor, but receive very little technical training. Several project outcomes and national documents identified joboriented, competency-based training as bottlenecks, e.g. the Indonesia Biodiversity Strategy and Action Plan 2003-2020 (IBSAB) identified conservation capacity self assessments final report (KLH cs, 2006) mentions human resource development as a priority in biodiversity conservastion management. Therefore, it is necessary to improve the human resources on forestry sector through trainings and short courses for government staffs, NGOs, and communities in field of social scientific approach to effective national park administration, and biodiversity conservation activities, monitoring of biodiversity, wildlife-human conflict management, the conservation of protected areas and wildlife, natural environment education and eco-tourism promotion. 7. Priority Revitalization of Agriculture, Rural, Marine, and Fisheries

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Code No: T-05-02900-1005-065095 8. Objectives To support the human resource development on forestry sector 9. Activities a. Training for national park managers and staffs and communities b. National conservation training initiative for regency capacity building for mainstreaming biodiversity and environmental protection: By establishing a jointly-operated and financed inter-departmental training facility/ organization (among the Ministry of Forestry, Ministry of Marine and Fisheries, and Ministry of Environment) with a viable long-term business model/plan to sustain integrated biodiversity conservation management capacity development. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,650,000 0 5,650,000 2,925,000 0 0 0 2,925,000 8,575,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 8,575,000 8,575,000

T- 97

Code No: T-04-02900-0504-065097 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Development and Enhancement of Forestry Products : 36 months : National wide : Ministry of Forestry : Ministry of Forestry

6. Background and Justification Successful forestry development is determined by both development of plantation forests and rehabilitation of natural forests. The new paradigm indicates that success in forest development is not only measured by the amount of forest area but also by the quality of plantation, and people participation especially farmer groups. With the rapid exploitation of tropical forest resources, it is generally recognized that the development of high quality timber plantation by promoting tree improvement technology is essential not only to alleviate the pressure to the natural forest, but also to attain economic development for the wood industries in Indonesia that has been heavily relied on the supply from the natural forest. To improve forest plantation begins with providing good quality seed, in adequate amount and at the time. At this moment, good quality seed fulfillment is through the existing seed sources but only 19% are supplied annually. The Ministry of Forestry needs to import 6% of good quality seeds to forest plantations. The seeds should have a certificate of origin, certificate of quality and certificate of phytosanitary. About 75% seed from farmers are clandestin seed. Clandestin seed is seed produced by farmers from unqualified seed sources that grow anywhere and without information on seed origin. Therefore, in order to enhance the forestry product, it is to improve the quality of forestry seed, the implementing technology, as well as to empower farmers of forestry products. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives To conduct study in improving the quality of forestry products To improve the quality of forest tree seed so that forest plantation can increase To strengthen institutions of local people in forest development To promote the utilization of forestry products, especially bamboo, for improvement of socio economic condition of people in rural area e. To implement transfer of technology in forestry product development through training (domestic and overseas) and extension program T - 98 a. b. c. d.

Code No: T-04-02900-0504-065097 f. Institutional strengthening g. To conserve bamboo resources and develop sustainable management for utilization of bamboo in Indonesia 9. Activities a. To follow-up project on tree improvement 1) Advanced generation breeding 2) Sylivicultural system for the improved fast growing species b. Sustainable management of bamboo resource project 1) Development study of bamboo plantation 2) Establishing data base system for bamboo resource development 3) Establishment of small scale bamboo processing unit 4) Develop model for sustainable management of bamboo cultivation 5) Conducting seminars and trainings (domestic and overseas) in the field of bamboo resource management c. To empower the clandestine seed producers for preparing qualified seed 1) Trainings for seed farmers 2) Maintenance of farmer seed source 3) Socializations on forest seed criteria and standard regulation 4) Monitoring and evaluation of quality seed distribution

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,489,000 0 4,489,000 490,000 0 0 0 490,000 4,979,000 T- 99 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,979,000 4,979,000

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Ministry of Marine Affairs and Fisheries

T- 101

T - 102

Code No: T-04-03200-0403-065109 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Fisheries Enrichment in Developing Capture Fisheries Resources : 36 months : National wide : Ministry of Marine Affairs and Fisheries : Directorate General for Capture Fisheries, Ministry of Marine Affairs and Fisheries

6. Background and Justification Exploitation without considering of resources management principles will lead to excess use of the fishing capacity. The government regulation to resolve this problem is to limit exploitation, protect existing marine biota, and conduction sea ranching. Therefore, the stakeholders that include the government and universities, are to make the necessary arrangement on the appropriate fishery resources management strategy and implementation, with the aim of ensuring that fish exploitation will be sustainable of the long run. Various species in the tropical area, particularly in Indonesia, have high economic value and are highly competitive in the international market, but the stock is small. One of the issues that need to be resolved is how to develop the ranching program for important economic commodities found in Indonesias waters. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives a. b. c. d. e. f. To guarantee sustainability of fishing activities, with sustainable fish production To maintain preservation of fish resources and environment To accelerate efforts for recovering decreasing stocks. To recover habitat condition To increase stock capacity To increase fish production and capability of local superiority

9. Activities a. b. c. d. e. Optimizing fish resources utilization. Implementing of stock ranching techniques Increase stock supply Formulation of fisheries management pattern Implementation of supporting activities T- 103

Code No: T-04-03200-0403-065109 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,800,000 0 1,800,000 200,000 0 0 0 200,000 2,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,200,000 800,000 2,000,000

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Code No: T-04-03200-0403-065110 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development of Concept and Strategy of Indonesian Marine Cadaster for Ocean Governance : 24 months : DKI Jakarta : Ministry of Marine Affairs and Fisheries : Directorate General for Marine Coastal dan Small Island, Ministry of Marine Affairs and Fisheries

6. Background and Justification Indonesia has a widespread sea part with total area of 5.8 million km2 including the Economic Exclusive Zone (EEZ). This area has not yet taken into account the jurisdiction over Contiguous Zone and Continental Shelf which are still undergoing entitlement process. Moreover, with its beach line of 81,000 km, which is the 2nd longest in the world after Canada, and with its total number of islands 17,504, Indonesia is inevitably the largest archipelago in the world. Unfortunately, thus far, Indonesia is still lack of directory and peremptory instruments (e.g. policies, treaties, laws, edicts, decrees, regulations and proclamations) to minimize such conflicts. Albeit the marine spatial planning is present to elucidate such role, it mostly falls short due to its feebleness to address the applicability of current legal, institutional and administrative land based cadastral arrangement to current rights, restriction and responsibilities in the marine environment. Moreover, some strategies are required to incorporate local values (e.g. local community norms or regulation or the indigenous knowledge) in the ocean governance. The main reasons underline the above phenomenon are the unique problems associated to the marine environment, inter alia, the lack of concept of tenure; indistinct boundary demarcation; 3-dimentional nature of marine environment (i.e. 4th dimension possible giving time as one dimensional aspect; and the possibility of overlapping rights in a single locality). Development areas on land, sea and air are basically deemed as cadastral objects where some attributes, i.e. boundary, area, location and subjects, are attached to. The need for a marine cadastre is increasing, being driven mainly by the need to address the environmental, social and economic issues of sustainable development. For this to occur, clear concept of Indonesian Marine Cadastre is required 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries

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Code No: T-04-03200-0403-065110 8. Objectives a. To identify the requirement of data and information with regard to the ocean development activities; b. To identify the current development activities and local values associated with the ocean development; c. To develop concept of Indonesian marine cadastre; d. To formulate policy on the ocean governance based on the concept of Indonesian marine cadastre; e. To formulate strategy for administering and managing development activities on the ocean concomitant with the incorporation of local values. 9. Activities a. Identification and evaluation of current legal and policy aspect related to Indonesian ocean governance; b. Identification of current development activities and local values associated with the ocean development; c. Identification of data and information requirement for the development of Indonesian Marine Cadastre; d. Stakeholders Consultation, socialization and dissemination of concept development e. Concept development of Indonesian Marine Cadastre ; f. Identification of pilot project area, implementation of marine cadastre concept and monitoring and evaluation on pilot project area. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 106 : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,00,000 62,000 0 0 0 62,000 1,062,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,062,000 1,062,000

Code No: T-04-03200-0403-065111 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agency : Monitoring of Antibiotic Residue in Fishery Product : 12 month : East Java, North Sumatera, Lampung, South Sulawesi : Ministry of Marine Affairs and Fisheries : Directorate General for Fish Processing and Marketing, Ministry of Marine Affairs and Fisheries

6. Background and Justification Residue monitoring is an important part of an overall strategy to minimize unwanted residues and environmental contaminants in food. It serves to identify potetntial problems and indicates where follow up action is required. Residue monitoring is also important as a measure of overall product quality, particularly for fisheries exporting countries such as Indonesia. Some countries that import Indonesian aqualculture products require a Government residue monitoring program in the country of origin, as a condition of entry for certain products. These countries include the European Union that has specific requirements for fisheries and aquaculture products (CD 96/23/EC). Therefore, the laboratory for fish inspection and quality control (LFIQC) needs to carry out monitoring of residues and contaminants to cater for market restrictions imposed by an importing country as a result of a residue incident 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives a. To improvement the capacity building of provincial LFIQC on monitoring of antibiotic residues of fisheries products by providing Liquit Chromatography-Mass Spectometry/Mass Spectometry (LC MS/MS) equipment for antibiotic residues test to meet importer countries requirement at : National Center for Fish Inspection Product and Development (NCFIPD) Jakarta, LFIQC Medan, LFIQC Samarinda, LFIQC Surabaya, LFIQC Lampung dan LFIQC Makassar. While BBP2HP as a standard laboratory really needs to provide LC MS/MS as a part of guidance activity and reference source. b. To train the local LFIQC analyst, include: sample preparation, equipment operational and data interpretation technique.

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Code No: T-04-03200-0403-065111 9. Activities a. Procurement of LC MS/MS for LFIQC Medan, Samarinda, Surabaya, Lampung and Makassar; b. Conduct supervision on LC MS/MS delivery on LFIQC; c. Development of Testing Method; d. Training of LC MS/MS operator. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 400,000 0 0 0 400,000 2,400,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,600,000 800,000 2,400,000

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Code No: T-04-03200-0403-065112 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Revitalization of Traditional Brackish-Water Ponds through Reorientation towards Organic Shrimp Farming : 24 months : Nanggroe Aceh Darussalam : Ministry of Marine Affairs and Fisheries : Directorate General for Aquaculture, Ministry of Marine Affairs and Fisheries

6. Background and Justification Shrimp has a significant importance in fisheries products of Indonesia because of its high potential for expansion and contribution to national development especially in reducing poverty, increasing growth, promoting economic recovery and opening possibilities for absorbing labor. The policy for the application of technology needs to be guided and weighted towards the application of Good Aquaculture Practices (GAP) and Bio-security. In order to reach national production targets in 2006, to fulfill the needs of the processing industry and export market, intensification methods will be applied to 7,000 Ha of cultivation ponds, with a production target of 210,000 tons while traditional cultivation ponds which cover 447,000 Ha across Indonesia will be developed using simple methods which are oriented towards the development of organic aquaculture of shrimp and milkfish. Promoting the development of aquaculture businesses which apply organic aquaculture technologies is a strategic step from several viewpoints: (1) ecologically sounds, there will be positive effects towards the rehabilitation of environmental carrying capacity; (2) technically, the product will be of high quality; (3) economically, the product will be highly competitive; and (4) politically, anti-shrimp farming issues will be addressed. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives The overall goal of the Program for the Revitalization of Traditional Brackish-Water Ponds through Reorientation towards Organic Shrimp Farming is to achieve the rebuilding of the community-based national shrimp farming industry generally and specifically in the Province of NAD (Nanggroe Aceh Darussalam)

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Code No: T-04-03200-0403-065112 9. Activities a. Rehabilitation of cultivation ponds infrastructure and equipment over an area of 6,102 Ha in the Province of Nanggroe Aceh Darussalam b. Mangrove re-forestation with an average coverage of 5% of the overall area. c. Organizational strengthening of shrimp farmer groups in NAD Province, and improved business partnerships . d. Improved awareness and capacity building of farmers and group of fish farmers; 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 500,000 0 0 0 500,000 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 500,000 2,500,000 3,000,000

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Code No: T-04-03200-0504-065113 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Management and Conservation of Coastal Fisheries Resources : 36 months : Buton Regency and Bau-Bau City, Southeast Sulawesi : Ministry of Marine Affairs and Fisheries : Directorate of Marine Coastal and Small Island, Ministry of Marine Affairs and Fisheries

6. Background and Justification Some of the fisheries issues in the Buton Regency and City of Bau-Bau relate to lack of management system and capacity, covering among others : the lack of fisheries data base and information system, destructive fishing and illegal fishing practices, decreasing fish stocks and Catch Per Unit Effort (CPUE), and decreasing income and poverty of fishermen. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives To improve fisheries management system for sustainable livelihood and coastal fisheries resources 9. Activities a. Stock assessment and conservation management. b. Co-management of coastal resources. c. Fishing vessels and fish handling management 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 2,100,000 0 2,100,000 460,000 0 0 0 460,000 2,560,000

2,100,000 460,000 2,560,000

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Code No: T-04-03200-0403-065114 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : The Strengthening Capacity Building of Fish Quarantine in Indonesia : 60 months : DKI Jakarta : Ministry of Marine Affairs and Fisheries : Centre for Fish Quarantine, Ministry of Marine Affairs and Fisheries

6. Background and Justification One of the high priorities in the development of fish quarantine is development of human resources of the Center for Fish Quarantine and its Implementing Units. Development shall be regularly carried out and equally distributed to centre and all units. Development will be implemented in short and long term education. The subject of education is health, pest and disease of fish. Short term education is three (3) months training, either in Indonesia or in foreign countries. Long term education is both scholarship and financial assistance for post-graduate programs in either local or foreign universities. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives The objectives to be accomplished are to improve the capacity of fish quarantine in Indonesia by strengthening the institution, improving the regulators, conducting training to all technical personels, providing equipments and developing information system 9. Activities Mainly, the activity needs 5 (five) years to accomplish and is categorized into: a. Training for all technical personnel at the Center and Implementing Units, given by experienced relevant experts b. Dispatching personnel to follow post graduate program in local or foreign universities c. Fulfiling fish quarantine laboratory equipment d. Monitoring and surveillance of spread of fish disease. e. Experiment of medication of fish disease, and f. Development of publication and information system

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Code No: T-04-03200-0403-065114 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 1,000,000 0 0 0 1,000,000 6,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 5,000,000 1,000,000 6,000,000

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Code No: T-04-03200-0403-065115 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Assistance for SMEs in Fish and Shrimp Industry : 12 months : National wide : Ministry of Marine Affairs and Fishery : Directorate General for Fish Processing and Marketing, Ministry of Marine Affairs and Fishery

6. Background and Justification A large number of small and medium scale fishery enterprises in Indonesia employ labor intensive methods in harvesting, processing and distributing of fishery products. However most of these Small and Medium Enterprises (SMEs) are still under-developed due to lack of capacity to produce good quality fishery products, such as lack of knowledge on required standard quality, lack of facilities (laboratories)/equipment for government to conduct quality/standard testing, lack of information networking among SMEs, and between SMEs and other relevant agencies, private sectors, industries and academics, etc. It is expected that through this project, the capacity of SMEs can be improved. For this reason, Indonesia needs assistance from other countries and from the private sectors to improve the capacity of Indonesian SMEs in producing good quality fisheries products. To this end, it is also expected that the project will improve the welfare of Indonesian subsistence fishermen in general. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives The main objective of the project is to improve the capacity of Indonesian SMEs in producing fisheries products with good quality and safety. 9. Activities In order to achieve the above mentioned objectives, the activities of the project will be focused on the following : a. Providing facilities of production chains of the small- medium fisheries enterprises in satisfying requirements of international standard, such as cold storage, ice plant, cool boxes, packaging, and labeling; b. Setting-up business incubators in production base areas.

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Code No: T-04-03200-0403-065115 c. Building facilities and infrastructure of the business incubator for fisheries products. d. Setting up information networking among SMEs and between SMEs and other relevant agencies, private sectors, industries and academics e. Developing production clusters of SMEs in given areas; f. Capacity building for fisheries business development: 1) increase SME knowledge on standard quality and safety requirements 2) increase SME capacity to promote their products 3) encourage technical and facilitate financial support for clustering small scale processor activities to ensure long term viability. 4) strengthen the abilities of Indonesias small medium scale fishermen and enterprises in helping them to broaden and to improve their human resources [to be new exporter 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,400,000 0 3,400,000 680,000 0 0 0 680,000 4,080,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,080,000 4,080,000

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Code No: T-04-03200-1005-065116 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Sorong Fisheries Academy Capacity Building Project : 24 months : Sorong, West Papua : Ministry of Marine Affairs and Fisheries : Agency Marine and Fisheries Human Resources Development, Ministry of Marine Affairs and Fisheries

6. Background and Justification West Papua Province has a huge potential of marine fisheries and has become a good fishing ground. Many fishing vessels come to its waters to catch fish and further to export or domestic consume. Currently, local fishermen in this province unfortunately lack the capacity in fishing. Due to this condition, mostly fishing vessel crews who are fishing in this area are not from local fishermen. The Government of Indonesia and local Government have developed a Fisheries Academy at Sorong to address this issue. Further, this Academy should be up-graded to create better crews for fishing vessels in the future. Based on the assessment, there are some proposals to up-grade this academy, such as education equipments, training for lecturer, improving laboratory and provide fishing vessels and navigation room. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives The objectives of this project are as follows: a. To improve teaching facilities such as computer, in focus and audio visual; b. To improve arrangement and spatial lay out for navigation room; c. To set up another unit of machines and tools at the workshop as at the vessel, including other support machines such as water treatment, cooling machine, etc. 9. Activities a. Preparing the feasibility study and detail design. b. Provide one unit training vessel long-line and additional modified for squid fishing, 150 300 GT; c. Providing some packages of Marine Electric Experimental Laboratory, where Sorong Fisheries Academy will prepare a room of 12 meters x 19 meters; d. Providing short-term training, scholarship, on the job training, and comparative study. T - 116

Code No: T-04-03200-1005-065116 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,000,000 0 6,000,000 250,000 0 0 0 250,000 6,250,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 6,000,000 250,000 6,250,000

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Code No: T-04-03200-0403-065117 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Sustainable Indonesia Fisheries Product Competitiveness : 12 months : National wide : Ministry of Marine Affairs and Fisheries : Directorate General for Fish Processing and Marketing, Ministry of Marine Affairs and Fisheries

6. Background and Justification The need of sustainable Indonesia fisheries product competitiveness has increased both in the domestic and international markets. In spite of opportunity to increase their income, these phenomena tend to be a serious constraint for most of the fishermen in Indonesia because most of them lack the capability to implement the Code of Conduct for Responsible Fisheries (CCRF). To ensure sustainable Indonesia fisheries product competitiveness, Indonesia needs formulating plans and prototyping in developing sustainable Indonesia fisheries product competitiveness from the downstream activities to upstream activities. In terms of product competitiveness, the introduction of preventive techniques such as HACCP (hazard analysis critical control points) are increasing and becoming more and more mandatory. Actual outbreaks diseases in the recent past have led to increase consumer demand for safer fish products. Therefore, this condition stimulates development of sustainable Indonesia fisheries product competitiveness systems. In determining the magnitude of sustainable Indonesia fisheries product competitiveness problem and its impact on society, it should be implemented from boat to plate. It also should be noted that while a vast number of sporadic fisheries-born disease episodes occur daily, many are seldom noticed or registered by national authorities. In Indonesia, an FSC (fisheries safety committee) will be formed that is responsible for the development of national fisheries safety policies. This committee consists of Directors and Senior policy makers of the Ministry of Marine Affairs and Fisheries and the National Agency for Drugs and Food Control. Indirectly this project will ensure sustainable fisheries, as the main employment generating sector in Indonesia. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries

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Code No: T-04-03200-0403-065117 8. Objectives The main objectives of the project are : a. To strengthen National Centre of Quality Control in responsible for the development of national fisheries safety policy. b. To design sustainable Indonesia fisheries product competitiveness for implementing suitable fisheries management b. To improve the standard required by consumers and standard of food safety in particular in the international market. 9. Activities In order to achieve the above mentioned objectives, the activities of the project will be focused on the following : a. Plan formulation in developing sustainable Indonesia fisheries product competitiveness; b. Site selection and commodities selection for sustainable fisheries product competitiveness: c. Developing infrastructure for ensuring the effectiveness of monitoring, controlling and surveillance of sustainable fisheries management; d. Infrastructure Development for post-harvesting in monitoring, testing and e. Collaboration and consultation with research institutes and academic bodies for promotion and information network for responsible management. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,400,000 0 3,400,000 680,000 0 0 0 680,000 4,080,000 T- 119 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 3,400,000 680,000 4,080,000

Code No: T-04-03200-0403-065118 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : Development of Economic Scales of Seaweed Processing to Improve the Quality and Value Added : 12 month : DKI Jakarta, Central Sulawesi, North Sulawesi, Gorontalo, South Sulawesi, Maluku : Ministry of Marine Affairs and Fisheries : Directorate General for Fish Processing and Marketing, Ministry of Marine Affairs and Fisheries

6. Background and Justification Seaweed is one of the potential fisheries products in Indonesia. The dominant type is Eucheuma Cottonii followed by racilaria. Recently, the utilization of seaweed in Indonesia is dry form which are exported and the rest are used to supply the local market. The quality of seaweed as raw material is poor with low price. Most of them are performed by high water content (40%) and bad appearance. Meanwhile, exporter required lower water content (20 30%) and clean appearance. Seaweed are harvested in immature, so the contain of carageenan and quality low especially in storage time. Actually, this dry seaweed can be processed further become ATC (Alkali Treated Carageenan) or SRC (Semi Refined Carageenan) with higher value. In Indonesia, most seaweeds is produced by medium and small scale farmer. They have less knowledge about the seaweed quality needed by the market. Beside that, they have no knowledge of processing of ATC and SRC even it didnt require high technology and able to apply by SMEs. To overcome those problems, the National Centre for Fish Quality Control and Processing Development has carried out efforts in collaboration with all stakeholder. However, such efforts still have a constraint equipment availability and skilled personal. Such assistance will not only help the growth of seaweeds processing industry in the country, but more importantly it will also increase seaweeds farmer welfare. 7. Priority Revitalization of Agricultural, Rural, Marines and Fisheries 8. Objectives a. To increase the knowledge and skill of seaweed farmer in handling b. To train processor in processing of dry seaweed to be SRC c. To give the equipments aid of seaweed handling and processing to be SRC as a model of Indonesian SRC processing in 6 region d. To increase the knowledge and skill of government officer T - 120

Code No: T-04-03200-0403-065118 9. Activities a. Survey and identify of seaweed industry in 6 region b. Training of sea weeds farmers, fish inspections, sea weed processors, and local officers c. laboratory equipments procurement d. Monitoring and evaluation 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,900,000 0 1,900,000 380,000 0 0 0 380,000 2,280,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,200,000 1,080,000 2,280,000

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Code No: T-04-03200-0403-065119 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Entrepreneurship Improvement The Group of Small and Medium Enterprises on Fish Processing Products : 6 months : DKI Jakarta : Ministry of Marine Affairs and Fisheries : Directorate General for Fish Processing and Marketing, Ministry of Marine Affairs and Fisheries

6. Background and Justification Fish processing is important and strategic for the fisheries business such for (1) value added fisheries products, (2) improvement on food safety and quality, (3) improvement comparative fish processing product, (4) improvement the earning and welfare on the processor, (5) improvement on job opportunity and decreasing the jobless, (6) multiplier effect growth, (7) increasing economic growth, and (8) improvement national earning and foreign exchange and local earning of the region. In Indonesia, currently the total number of fish processing undertakings are 18.247 units, which is dominated by 17.616 units of small and medium enterprise (96.3%) and the rest is industrial with the total number 658 units (3.7%). There were several constraints that face by small and medium enterprise such as limited of man power, capital, technology, market driven, low productivity due to traditional technology application which is produce primary products, low quality and value added. To improve the welfare and high quality products from small and medium enterprise for further development are (1) improvement the quality and development of fish processing products, (3) business improvement on fish processing product, (4) improvement the public services on fish processing product. The most important on improvement the entrepreneurship of the fish processor is through improvement in the activities to produce high quality product that can be sold in globally. On the other hand, improvement entrepreneurship conducted to develop the business and has ability to manage their business profitable/profit oriented. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives a. b. c. d. T - 122 To improve entrepreneurship the group of small and medium enterprises. To increase competency standard of fish processors. To improve market intelligent the group of small and medium enterprises. Empowerment fish processing unit in the region to strengthen the capital of small and medium enterprise groups.

Code No: T-04-03200-0403-065119 9. Activities The activity will be obtained in potential fish processing center in Indonesia, consist of activities as follow a. Identification and mapping of potential development area b. Planning and preparation the training program in fish processing and entrepreneurship c. Capacity building of small and medium enterprise d. Job training per 10 persons at the Trainer of Training (TOT) in fish processing industry e. Training 180 persons the owners and the labors of small and medium enterprise to produce the product base on standard quality, HACCP system, entrepreneurship as a pilot project in the center of fish processing. f. Strengthening the capital of small and medium enterprise groups to extent their business. g. Monitoring and evaluation. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,300,000 0 2,300,000 460,000 0 0 0 460,000 2,760,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,760,000 1,000,000 2,760,000

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Code No: T-04-03200-0403-065120 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Fishery Resource Management and Development Strategy in Arafura Waters : 36 months : DKI Jakarta, Papua : Ministry of Marine Affairs and Fisheries : Directorate General for Capture Fisheries, Ministry of Marine Affairs and Fisheries

6. Background and Justification The Arafura waters have been identified as one of the priority areas in Indonesia to promote economic activities derived from fishery sector. A successful fishery management rests upon a chain of activities, supporting each other. The starting point is an assessment of the available biological resources followed by an active tailoring of the fishing fleet. It is only when the fishing capacity is balanced against the resources that sustainable harvest levels can be achieved and maintained. In Indonesia there are however some constraints, highlighted below, in the implementation of the assessment under a sustainability-approach. 7. Priority Revitalization of Argiculture, Rural, Marines and Fisheries 8. Objectives To develop a simulation model incorporating technical and non-technical, such as socio economic, aspects, that is able to measure the fishing capacity for basic development of management plan in the identified areas through applications of appropriate stock assessment methodology which is applicable to tropical fisheries and to expedite development programs by enhancing capacity and skill of local staff through training and extension programs to meet the national priority on fisheries resources management plan. 9. Activities First Phase: Project Preparation a. Planning of the development of simulation model for fishery resource management b. Re-assessment of marine fish stocks in Indonesian waters

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Code No: T-04-03200-0403-065120 Second Phase: a. Data collection, compilation and analysis of primary data (including field survey) b. Development of simulation model for fishery resource management Third Phase: a. Formulation of policies and strategies of fishery resources management to achieve responsible fisheries b. Recommendation for fishery resources management in the identified regions c. Setting up the data base/simulation model for fishery resources management Cost 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,800,000 0 1,800,000 400,000 0 0 0 400,000 2,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,200,000 1,000,000 2,200,000

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Code No: T-04-03200-0403-065121 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development of Shellfish and Sea Cucumber Hatcheries and Farming in Indonesia : 36 months : West Lombok Regency-West Nusa Tenggara : Ministry of Marine Affairs and Fisheries : Directorate General for Aquaculture, Ministry of Marine Affairs and Fisheries

6. Background and Justification Indonesia has vast potential of aquaculture areas. The total potential area for marineculture development is 26.4 million ha spread along 81.000 km of coast line including specific areas suitable for the development of almost every aquaculture commodity. Mangrove areas with potential area for brackish water aquaculture development cover about 6 million Ha. However the effective area allowed for brackish water aquaculture is only 20% of the total mangrove area which is about 1,2 million Ha. Potential areas for shell fish culture are mainly located in the eastern part of Indonesia, such as in some coastal waters of West Nusa Tenggara and East Nusa Tenggara and in surrounding areas of Sulawesi island. By 2010, it is estimated that the total food fish demand in Indonesia will reach 6.2 million tonage. The forecast is based on an estimated Indonesian population of 240 million in 2010 with a fish consumption rate of 26 kg/capita/year (FAO/De Nigris, 2000). The projected fish production from aquaculture in 2010 will be reached through implementing intensive aquaculture programs. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives Short-term objectives: a. To produce pearl oyster, Abalone and Sea cucumber seed and develop farming of these species, in order to support the development of mariculture in potential areas; b. To undertake shellfish (abalone, pearl oyster) and sea cucumber seed production and farming technology with standard commercial management and operational approaches. Long term objectives (Goal): a. To encourage the development of a sustainable marine culture industry in areas with suitable potential b. To extend the success story of other countries technology in establishing marine fish/invertebrate hatchery and farming development as a model for promoting new businesses with a commercial management and operational approach; T - 126

Code No: T-04-03200-0403-065121 c. To create new jobs and various services relevant to the local communities as well as increasing incomes; d. To encourage the economic development of local governments through mariculture; e. To conserve wild fisheries resources by reducing intensive and destructive exploitation. 9. Activities Proposed Activities : a. Development of marine fish/invertebrate hatcheries and farming, especially for shellfish (Pearl Oyster and Abalone) and Sea cucumber. b. Application of donor country technology combined with technology developed/adapted in-country for seed production and farming c. Running the hatcheries and undertaking farming with standard commercial management and operational approaches d. Training of staff in technological, management and business aspects e. Extension programs to develop spat hatcheries and farming in the areas surrounding the centre as a model of business cooperation f. Training of staff in management and business aspects related to operatr offshore ports/trading for the live fish market 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,400,000 0 2,400,000 480,000 0 0 0 480,000 2,880,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,800,000 1,080,000 2,880,000

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Code No: T-04-03200-0504-065122 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Community Based Development on Coastal Environmental Management : 38 month : DKI Jakarta : Ministry of Marine Affairs and Fisheries : Directorate General for Aquaculture, Ministry of Marine Affairs and Fisheries

6. Background and Justification Coastal and sea areas have a high value in vary dimensions, such as economy, physic, also socio-economy and environment protection. Many activities could be developed in coastal and sea area, such as real estate, tourism, manning, services, also transportation. Following these potencies, many investor interested to participate develop the areas. Standing from economy point of view, community usually placed as an object of such developing activity rather than placed as a subject. Environment protection activities are usually shown as an activity which needed more finance considered to the economy activity also create revolving fund in very long term period. This phenomenon create the condition and view that the environment protection activities not the gain activities. Thats why it usually became a second opinion in developing coastal and marine sector. Variety of coastal and marine potency should be drawn in collaborative many activities related to the economy activities and environment protection activities. This two kind of activity should be develop synchronize. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives Central and local government is addressing the role to develop coastal and sea area particularly within environment management context. Besides, central and local government should establish the activities in term of environment management program. The priority of coastal and marine development is creating the sense of belonging of local community developing their coastal and sea area.

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Code No: T-04-03200-0504-065122 9. Activities These activities cover: a. Arranging the national guideline of coastal environment management based on community participation. b. Designing the role of central and local government developing coastal and sea areas in term of environment protection context. c. Designing the scope of activities of coastal and sea environment protection. d. Training for empowering the related stakeholders. e. Implementing the activities related to coastal and sea environment management. f. Monitoring and evaluating the environment management activities 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 500,000 0 0 0 500,000 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 2,200,000 800,000 3,000,000

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Code No: T-04-03200-0403-065123 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Integrated Fisheries Development and Waters Resource Management on Tempe Lake : 60 months : South Sulawesi : Ministry of Marine Affairs and Fisheries : Directorate General for Capture Fisheries, Ministry of Marine Affairs and Fisheries

6. Background and Justification The condition of Lake Tempe is getting worse and it has to be changed and controlled through the sustainable environment approach. It needs to focus on some fisheries activity aspect. It needs a proper approach for fisheries development and management. The Directorate of Fish Resources thinks that the management of Lake Tempe ought to be conducted by all related institutions. Lake Tempe is located in 3 (three) districts in South Sulawesi, it needs a management with an area approach. In addition, Lake Tempe is influenced by a number of big rivers, so that management of Lake Tempe should consider other usage management such as, through area cultivation and plantation. 7. Priority Revitalization of Agriculture, Rural, Marines and Fisheries 8. Objectives a. To establish collaborative management system (co-management) or fisheries collaborative management which is suitable to the area condition to protect and combine diversity with fisherman livelihood sustainability. b. To increase livelihood guarantee in sustainable fish resources utilization. c. Institutional strengthening of local civil society. 9. Activities a. b. c. d. To establish Collaboratve Management System. To generate fisherman income. Institutional Strengthening. To improve management awareness in Lake Tempe

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Code No: T-04-03200-0403-065123 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 100,000 0 0 0 100,000 1,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 700,000 400,000 1,100,000

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Ministry of Health

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Code No: T-05-02400-0703-061129 1. Project Title 2. 3. 4. 5. : Support for Elimination of Lymphatic Filariasis (ELF) in Indonesia and Other Communicable Diseases Control (CDC) Duration : 48 months Locations : East Nusa Tenggara, West Nusa Tenggara, Papua, and West Irian Jaya Executing Agency : Ministry of Health Implementing Agency : Ministry of Health

6. Background and Justification Lymphatic filariasis (LF) is a disabling disfiguring infection caused by parasitic worms. The diseases is amajor cause of diasbility, social stigmation, psychosocial and economic reductions in life opportunities. LF is a major contributor to poverty, and the program to eliminate it will reduce suffering and disability, improve reproductive and sexual health and will improve child and maternal health and development, through the ancillary benefits arising from effects on intestinal parasites. The Program will significantly contribute for reducing the numbers living in absolute proverty by 2015. It is estimated that 120 million people are infected in around 80 countries including Indonesia. The diseases has been trageted by the World Health Organization for elimination as a public health problem by the year 2020. In Indonesia there are three of filaria parasites Brugia malayi, Brugia timori and Wuchereria banchrofti. According to a national rapaid mapping survey and provincial reports from 2005, there are currently at least 8243 chronic sufferer from LF in more than 336 districts of country. Ninety three districts have been declared as endemic filariasis I indonesia based on baseline surveys by nigh blood finger prick test and around 2.605.610 people have already treated in 19 districts in 2004 from 60 millionstargeted through Mass Drug Administration (MDA) to interrupt the transmission of the disease. As regards the ultimate public health goal of eliminating LF from indonesia in 2020 It is crucial to further strengthen advocacy for Programme Elimination Lymphatic Filariasis (PELF) and to assist the elimination of LF as a public health problem nationwide campaign as tested succesfully in Alor and based on the developed tool kit will the goal of eliminating LF by 2020 be able to be achieved. 7. Priority Education and Health 8. Objectives a. To provide assistance to the directorate general for CDC & environmental health in Jakarta to advokate to national, provincial and district stakeholders for strengthening of PELF. T- 135

Code No: T-05-02400-0703-061129 b. To stengthening the institutional capasity of communicable disease control and public health advice in Indonesia. c. To facilitate advisory inputs to the wonder Indonesia health reform process by key health decision-masking institutions. Increases awarenee and coordination of public health policy advice exemplified in CDC will contribute to democratization and increases the efficiency and efectiveness of public health decision making. d. To strengthen the capasity in implementing LF control mechanism in concerned provinces including further support to NTT. 9. Activities ELF and other communicable disease control 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,600,000 0 2,600,000 300,000 0 0 0 300,000 2,900,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,900,000 2,900,000

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Code No: T-05-02400-0703-061130 1. Project Title 2. 3. 4. 5. : Strengthening Surveillance and Response to Avian and Pandemic Influenza Duration : 36 months Location : DKI Jakarta Executing Agency : Ministry of Health Implementing Agencies : a. Directorate General for P2-PL, Ministry of Health b. Directorate General for Medical Care, Ministry of Health c. Directorate General for Pharmaceutical Services and Health Instrument, Ministry of Health d. Public Communication Centre, Ministry of Health e. Health Promotion Centre, Ministry of Health f. Crisis Handling Centre, Ministry of Health g. Agency Research and Development for Health, Ministry of Health

6. Background and Justification Avian influenza is currently becoming one of the serious threats to human health through the imminent emergence of a highly pandemic strain of H5N1 variant of the virus. In Indonesia, the avian influenza on animal currently has spread to 23 provinces comprise of 151 districts. Avian influenza has also been infecting human. Since the first reported case in Tangerang in June 2005, the Al spread progressively and up to December 12, 2005, there have been 14 confirmed cases, 9 of which cause deaths. This AI epidemic has potentially continue to progress into a stage where disease transmission from human to human occurs (influenza pandemic). At this stage the pandemics is predicted that, the disease could take millions of human life. In responding to the outbreak, the government of Indonesia is putting all efforts to prevent the further spread of Al while strengthen the health system for pandemic preparedness. Accordingly, coordinated by Bappenas is setting an Integrated National Strategic Plan on Al Control and Pandemic Preparedness. This mainly builds on the basis of current policy and plan of Ministry of Health Strategic Plan and Ministry of Agriculture Strategic Plan. The National Plan has set up core strategies such as victim cares, surveillances, public awareness, capacity building and legislation, and research and development. Surveillance is one of the most urgent measures in response to Al spread. In particular, laboratories for human surveillance exist in insufficient number to cover vast area of Indonesia. Accordingly the current laboratory capacity is lacking equipment for prompt test of viral infection. Establishment of a Biosafety Level 3 (BSL-3) laboratory is a necessity. The capacity of 8 regional referral laboratories and 26 provincial health laboratories have limited and inconsistent capacity. Include in the strategy is furnishing 44 hospitals across country with suitable laboratory methods to perform rapid testing.

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Code No: T-05-02400-0703-061130 7. Priority Education and Health 8. Objectives To contribute to the national and global strategy of Avian Influenza Control and Human Influenza Pandemic Preparedness. 9. Activities a. b. c. d. e. f. g. h. i. Strengthening sustainable management Strengthening surveillance on animal and human Prevention and control The strengthening capacity the medical service Managing of human cases of Al Protection of high risk group Epidemiological surveillance on human Risk communication, information & public awareness Project cost

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 20,000,000 0 20,000,000 0 0 0 0 0 20,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 20,000,000 20,000,000

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Code No: T-05-02400-0790-061131 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Preparedness and Disaster Response Management : 12 months : Bali : Ministry of Health : Center for Overcoming Disasters, Ministry of Health

6. Background and Justification Indonesia prone with sudden natural events such as earthquakes, and vulcanic eruptions. This country is also threatened by destructive man-made emergencies especially conflict with violence which can distrupt normal life, create human effect such as post traumatic stress disorder, effect of social and culture. The health problems that emerge, has to be solved by integrated approach, starting from preparedness and mitigation phase through rapid response and rehabilitation phase. Disaster response activities that must be done during emergency are helping the victims, evacuating affected people, establishing field health services and operating public kitchen.Therefore we still need more assistance in term of training and other technical assistances on skill and management upgrading for the nation and local health workers to deal with the management of IDPs and other emergencies either natural or human generated disasters. 7. Priority Education and Health 8. Objectives To improve capability of disaster response by integrated approach, starting from preparedness and mitigation through rapid response and rehabilitation phase. 9. Activity Training 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-05-02400-0790-061132 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agencies : Quality Improvement on Public Health Services : 36 months : DKI Jakarta : Ministry of Health : Ministry of Health

6. Background and Justification Health development is an investment for improving the quality of human resources. Health is a main capital for human in order to reach its welfare and to make more productive socially and economically. Due to reach the desired level of community health the need of health infrastructure and accessibility is very important. Generally, nutrition and health status of Indonesia is improving and getting better, but if we compare with other South East Asian (ASEAN) countries, Indonesia is still lower than them. Indonesia is also far from standard achievement in Millennium Development Goals (MDGs). Nowadays, the health development is focusing on supporting for improvement health degree of community by enhancing the accessibility of community to health services, especially poor people. Another focus is to make better the quality of health services and to make it equally. Due to those goals, it is needed to improve the quality in health public services by enhancing the function and accessibility of Puskesmas (Center of Community Health). This improvement is a tool for decreasing the rate of child mortality, mother mortality, and the nutrition status. The synergy between improvement of health accessibility and infrastructure of health services will make community easier to reach health facilities, high quality of services, and cheap medicines. 7. Priority Education and Health 8. Objectives a. To support the improvement of quality and accessibility of health infrastructure. b. To improve the community understanding in healthy behavior. c. To develop a policy about health public services.

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Code No: T-05-02400-0790-061132 9. Activities a. b. c. d. e. Development study/comparative study Trainings, seminars, and workshops Long-term and short-term experts Formal education for government officers Capacity building for government institution

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 50,000,000 0 50,000,000 0 0 0 0 0 50,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 50,000,000 50,000,000

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T - 142

Ministry of Finance

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Code No: T-06-01500-0101-064134 1. Project Title : Public Financial Management Multi-Donor Trust Fund (PFM-MDTF) to Support Indonesias Government Financial Mangement and Revenue Administration Project (GFMRAP) Duration : 72 months Location : DKI Jakarta Executing Agency : Ministry of Finance Implementing Agencies : a. Directorate General for Treasury, Ministry of Finance b. Directorate General for Taxes, Ministry of Finance c. Directorate General for Customs and Excises, Ministry of Finance d. Directorate General for Budget Allocations, Ministry of Finance e. Secretariat General of the Ministry of Finance f. Inspectorate General of the Ministry of Finance g. Fiscal Policy Agency, Ministry of Finance h. Secretariat of Tax Court, Ministry of Finance i. Center for Information and Technology, Ministry of Finance j. Secretariat General of the DPR k. National Development Planning Agency

2. 3. 4. 5.

6. Background and Justification In 2004, the Minister of Finance sought the assistance of the World Bank (WB), IMF, and other Donors to support the governments effort to implement an integrated, governance based-program that locks in major policy and institutional reforms across broad areas of Public Financial Management. The decision to push forward the implementation of these reforms gained momentum with the passage of three new finance laws, namely, the State Finance Law No.17/2003, the Treasury Law No. 1/2004 and the State Audit Law No. 15/2004. Extensive discussions and negotiations between the government and the World Bank, together with the IMF, gave rise to the Government Financial Management and Revenue Administration Project (GFMRAP). GFMRAP provides the umbrella for sequencing reform activities in three major functional areas public financial management, tax administration and customs. Key reforms in these three areas were proposed to be supported; financed and monitored through a three a three-phased World Bank financed Adaptable Program Loan (APL). Phase I of GFMRAP is on going and focuses primarily on providing support for reforms in the expenditure management area of PFM, with limited supported in the other functional areas to pave the way for broader revenue administration reforms in subsequent phases. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation T- 145

Code No: T-06-01500-0101-064134 8. Objectives The overall objective of the Trust Fund is to support the Government Of Indonesia (GOI) to enhance public sector contribution to the socio-economic development of its population. The purpose of the proposed activities is to improve the effectiveness of public financial management in Indonesia through support the Government Financial Management and Revenue Administration Project (GFMRAP). Special emphasis will be put on tax and customs administration. The trust fund will be administered by the World Bank and will be available to finance Bank-Executed as well as Government-Executed activities-particularly those related to capacity building, analytical and advisory services, and technical assistance. 9. Activities f. g. h. i. j. k. l. m. Budget preparation, execution and treasury management; Tax administration modernization and reform; Customs administration modernization and reform; Legislative oversight; Procurement and audit reforms; Policy capacity development; Change Management, HR and communications; Management, Strategy and Visibility

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 17,874,000 0 0 0 0 0 0 0 17,874,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 3,574,800 14,299,200 17,874,000

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Code No: T-06-01500-0101-064135 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : PHRD Project Preparation Technical Assistance Grant for the Second Government Financial Management and Revenue Administration Project (GFMRAP II) : 18 months : DKI Jakarta : Ministry of Finance : a. Directorate General for Taxes, Ministry of Finance b. Directorate General for Customs and Excises, Ministry of Finance

6. Background and Justification In 2004, the government sought the assistance of the World Bank (WB), IMF, and other Donors to support its effort to implement an integrated, governance based-program that locks in major policy and institutional reforms across broad areas of Public Financial Management. The decision to push forward the implementation of these reforms gained momentum with the passage of three new finance laws, namely, the State Finance Law No.17/2003, the Treasury Law No. 1/2004 and the State Audit Law No. 15/2004. Extensive discussions and negotiations between the government and the World Bank, together with the IMF, gave rise to the Government Financial Management and revenue Administration Project (GFMRAP). GFMRAP provides the umbrella for sequencing reform activities in three major functional areas public financial management, tax administration and customs. Key reforms in these three areas were proposed to be supported; financed and monitored through a three a three-phased World Bank financed Adaptable Program Loan (APL). Phase I of GFMRAP is on going and focuses primarily on providing support for reforms in the expenditure management area of PFM, with limited supported in the other functional areas to pave the way for broader revenue administration reforms in subsequent phases. A review of the triggers for moving from GFMRAP I to GFMRAP II showed that the Directorate General for Taxes is ready to move on to GFMRAP Phase II, which focuses on Tax Administration. Furthermore, the Minister of Finance had, on several occasions, requested the World Bank to accelerate the implementation of GFMRAP I and begin preparations for GFMRAP II and GFMRAP III (focus on Customs Administration). 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation T- 147

Code No: T-06-01500-0101-064135 8. Objectives The purpose of this grant is to support the preparation of a proposal for GFMRAP Phase II, which has as its main objective tax and customs administration modernization. 9. Activities The grant will support the following activities which will provide inputs for GFMRAP II project preparation: a. Consultancy services to develop a Transformation Roadmap to support tax administration reforms b. Master Plan for Customs modernization for Directorate General Customs and Excises 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,000,000 0 1,000,000

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Code No: T-06-01500-0101-064136 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : State Asset Management and Valuation 36 months DKI Jakarta Ministry of Finance Directorate General for State Asset Management, Ministry of Finance

6. Background and Justification By mid June 2006, the Ministry of Finance (MOF) has done a re-organization to enhance fiscal sustainability and to promote fiscal reform. The Directorate General State Claims and Auctions is now in the process of reorganization to become the Directorate General for State Asset Management (DSAM). In order to make the DSAM work effectively, it needs to be supported by human resources who are capable and expertise in field asset management and valuation. The DSAM still lacks experts on the field. The existing human resources of the DSAM need to be upgraded in their skills and knowledge in asset managemen and valuation. To support the function, the DSAM needs technical assistance to build the System Information of Asset Management and expertise on asset valuation.

7. Priorities a. Employment, Investment, and Export b. Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives The skilled and experienced human resources and well organized system will help the DSAM to realize good governance in state asset management and valuation in Indonesia. 9. Activities a. Capacity building in state asset management b. Capacity building in state asset valuation

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Code No: T-06-01500-0101-064136 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-06-01500-0101-064137 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Training on Public Relation, Fiscal Management and International Cooperation : 36 months : DKI Jakarta : Ministry of Finance : Ministry of Finance

6. Background and Justification Public Relations in the Ministry of Finance is needed to act more responsively on all activities which relate to funding/financing in the form of grant and technical assistant. In the framework of introducing the existence of Public Relations Bureau, the unit should prepare to inform all of the Ministry of Finance products pertaining to the Ministry of Finance profile, financial assets and other fiscal policies that should be executed by the Minister of Finance. As the Public Relation Bureau, the current difficulties faced by the Center for International Cooperation (CIC) is the lack of expertise an experience in foreign affairs and international cooperation, especially for lower level officers. The main task of the CIC, as a vocal point of the Ministry of Finance, is dealing with matters pertaining to regional and international economic and financial cooperation. In line with the task, the CIC must be ready to anticipate the rapid changes on economic and financial issues, such as the consequences of globalization and development in information technology. 7. Priorities a. Employment, Investment, and Export b. Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. An established relation and communication with government institution, mass organizations, and occupational organizations in the effort to convey fiscal policies. b. To provide better understanding in foreign affairs and international cooperation. c. To improve CIC officers on foreign affairs an international cooperation.

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Code No: T-06-01500-0101-064137 9. Activities a. Public relation capacity development b. Practical knowledge of foreign affairs and international cooperation c. Training on budgeting and fiscal management d. Practical knowledge on economic and fiscal management 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-06-01500-0101-064139 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Training and Technical Assistance on Internal Audit 36 months DKI Jakarta Ministry of Finance Inspectorat General, Ministry of Finance

6. Background and Justification The existence of the Ministry of Finance, specifically Inspectorate General (MOFIG) is very crucial since stakeholders such as the general public are expecting the MOFIG to monitor, through audit, the implementation of good governance principles at agencies under the MOF. The expectation of stakeholders can be fulfilled if MOFIG, as internal auditor of MOF, apply the modern internal audit administration system, and has the capability to do audit in accordance with international standards and practices, and can demonstrate high integrity in doing their job and focus on risk and substance of the operations and documents being audited. Currently, most of MOFIGs auditors do not have in-depth knowledge about related regulations, system and procedure that are applied in agencies under MOF, such as Tax Regulation and Modern Tax Administration System, individual valuation activity especially for high rise building and special objects, Directorate General for Custom and Excise reform related to IT development and application of the ASEAN Single Window, issue of regional autonomy and decentralization related to Regional Balanced Funds, auction, appraisal, state receivable management and state receivable write-off, national asset management, loan and grant, government bond, protofolio strategy and receivable risk, fiscal supporting risk and liability. Such lack of knowledge influence the audit quality and strategy. Thus, this project is aimed to build human capacity to perform high quality audit and giving recommendations. The project is also aimed to have an in-depth knowledge in modern internal audit administration system and prosedures, formulate the model or framework, and implement the best practice of internal audit administration system procedures. 7. Priorities a. Employment, Investment, and Export b. Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives 1. Improving audit plan and strategy 2. Improve the quality of audit finding, audit result analysis, and reporting T- 153

Code No: T-06-01500-0101-064139 3. Improving audit finding follow-up system and procedure 4. Institutional facilities for implementing modern internal audit administration system: equipment, data access, and database infrastrucutre and protocols. 5. Enhance auditor skill in individual valuation audit and EDP audit 6. Increasing understanding on regional autonomy and decentralization issues 7. Formulate new audit strategy. 9. Activities a. Internal audit administration system project b. MOFIG performance maximization project c. Complience office for good governance project d. Compliance office for risk management project 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 0 0 0 0 0 1,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,500,000 1,500,000

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Code No: T-02-01500-0101-064141 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Development on Training and Learning Program 36 months DKI Jakarta Ministry of Finance Financial Education and Training Agency, Ministry of Finance

6. Background and Justification The Financial Education and Training Agency (FETA) is an organization (echelon I) under the Ministry of Finance (MOF) of Republic of Indonesia which is responsible to maintain and develop human resources of MOF. The development of human resources is mainly done by organizing education and training for all employees of MOF. By the end of 2009, FETA has 2 main goals which are 1) to become a learning center, and 2) to become a Knowledge Development Research Center for MOF. These goals are strategic because we believe that professionalism and competence of human resources are the key success to achieve MOFs objectives. As a Learning Center, the FETA is to provide education and training for all employees of MOF in order to enrich their knowledge and skill that are related to their duty in government finance. There are two forms of training provided by FETA, which are conventional training and distance learning. Conventional training is similar to classroom education, where the trainer and trainees interact directly in the classroom. Conversely, there is no direct interaction in distance learning. The trainees are not required to show up in some place to meet their trainer. There are two distance learning programs, which are Excise Distance Learning for the Directorate General for Customs and Excise, and Tax Bailiff Distance Learning for the Directorate General for Tax. By mid June 2006, MOF has done a re-organization to enhance fiscal sustainability and to promote fiscal reform. As a consequences of any re-organization, there will be a need for placing the right man at the right position. This the part where FETA has a role. Before placed in any position, an employee should have required qualification so she/he can handle her/his job properly. This qualification can be gained through participating in training and education provided by FETA. To organize qualified education and trainings for more than 70,000 employee of MOF, there is a need for qualified training infrastructures, which consist of: training program, training material, curriculum and organizer. Currently, the FETA does not have enough qualified and competence human resources who can provide better education and training. This shortage is not in quantity, but in quality of human resources. As a consequence, some of the education and training provided by FETA do not match with the training needed by some employees.

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Code No: T-02-01500-0101-064141 Thereby, the FETA is looking forward to receiving assistance from donors in order to enhance human capacity of FETAs employees so there will be enough human resource to handle education and training for greater MOFs employees. 7. Priorities a. Employment, Investment, and Export b. Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. Providing competency based training that use information technology as much as possible. b. Offering opportunities to all employee of MOF to enhance their hard skill or soft skill c. Providing high quality services in organizing training and seminars that related to government finance d. Providing general services and information on government finance to the public. 9. Activities a. Capacity building for training program developer/designer b. Distance learning institution 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 156 : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

Code No: T-06-01500-0101-064144 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Development of Capital Market and Financial Policy 36 months DKI Jakarta Ministry of Finance Capital Market and Financial Institution Supervision Agency, Ministry of Finance

6. Background and Justification The capital market is a dynamic, attractive, and ever-changing industry and is closely inter-linked with other industries in the financial sector either in domestic, regional, or global settings. These characteristics trigger two major consequences, i.e. capital market must keep up with all the dynamics that take place within those settings and the capital market must also make all necessary preparations to anticipate those dynamics. Creativity and innovation of all market participants in the industry are the key success factor to deal with the first consequence. The second consequence is closely related to the first consequence. The capital market regulator must be willing, able, and determined to facilitate and support the creation and innovation of market participants. This is very difficult if not impossible to achieve unless the regulator has a solid set of programs to increase its capacity to properly observe and anticipate all trends beyond those market dynamics. 7. Priorities a. Employment, Investment, and Export b. Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. To gain knowledge regarding role and function capital market and financial policy b. To prepare future policy development to solve the problems identified. 9. Activities Advisor for capital market and non-bank financial sector Enforcement training in detecting capital market fraud Capital market development policy (CP training for long term experts) Development of legal framework and surveillance on financial instruments (CP training for long term experts) e. Financial system stability in Indonesia (CP training for long term experts) a. b. c. d.

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Code No: T-06-01500-0101-064144 f. g. h. i. j. k. l. m. n. o. p. q. r. s. t. u. v. w. Development of merger, acquisition and take-over structure (CP training for long term experts) Risk management for infrastructure development by public private partnership Building financial reporting based on XBRL (EXtensible Bussiness Reporting Language)\ Study on governace and funding of civil servants pension program Training in developing a guideline for preparation of bussiness valuation report Comparative study of municipal bond regulation and market Development study of forensic audit Assessment of investment policy and practices of pension funds Technical assistance on the improvement of pension supervision through information technology application Study on development of pension funds in Indonesia Technical assistance on establishment Indonesia pension funds master plan Study on the implication of current tax regime and tax exemption schemes to pension industry Training on pension fund development policy Development of early warning system in non-bank financial sector Building a central database Development of information and technology system in insurance sector CP training for for capital market and non-bank financial sector Capital market and financial services policy development (longterm experts)

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 10,000,000 0 10,000,000 0 0 0 0 0 10,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 10,000,000 10,000,000

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Code No: T-06-01500-0101-064154 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Training and Technical Assistance on Taxation 36 months DKI Jakarta Ministry of Finance Directorate General for Taxation, Ministry of Finance

6. Background and Justification In the millennium era in which bussiness has grown rapidly, it is necessary that tax regulations, rulings, and determination be always up-to-date. Therefore, the Directorate General for Taxation (DGT) requires the up-to-date human resources through studying in Master and Doctor Degrees especially in the field of taxation. A comparative study with other countries is always important, especially to know what kind of taxes have been levied and imposed. In addition to the upgrading of DGT officers, also important is the upgrading of tax payers is also important. In big cities, tax payers are not fully aware and fully understand their obligation. Hopefully, with officials who are capable to provide consultation in the right manner and equipped with the approprtate consultation knowledge would be very helpful while performing the consultation. 7. Priorities a. Employment, Investment, and Export b. Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. To enhanche human resources of DGT through long term training or studying Master and Doctor degree in taxation. b. To improve the quality of administration of the Indonesian taxation 9. Activities a. Tax administration and financial accounting (long term training) b. Human resource management (short term training) c. Tax audit for international transaction (short term training) d. Public relation and tax consultation (short term training) e. Criminal investigation (short term training)

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Code No: T-06-01500-0101-064154 f. Tax legislation on public ruling (short term training)

g. Technical assistance on information technology and data processing (short term training) h. Tax administration reform project assistance 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 0 0 0 0 0 2,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,500,000 2,500,000

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Ministry of Communication and Information

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Code No: T-03-05900-0409-066176 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening Regulatory Functions in Information and Communication Technology : 36 months : DKI Jakarta : Ministry of Communication and Information : Ministry of Communication and Information

6. Background and Justification As elucidated in the Medium Term National Development Plan 2004-2009 (Rencana Pembangunan Jangka Menengah Nasional), there are 3 main agendas in Posts and Information and Communications Technology (ICT) sector which are: (1) sector reforms; (2) infrastructure expansion; and (3) ICT development and utilization. The first agenda, sector reforms, aims at creating a more conducive environment for investment and establishing more efficient service provision by encouraging level playing field competition. In the last 5 years, the government has abolished monopoly in fixed communications as well as established regulatory body (Badan Regulasi Telekomunikasi Indonesia) and cost-based interconnection regime in telecommunications sector. In broadcasting sector, the government has issued Law No. 32 of 2002 on Broadcasting, established committee on broadcasting (Komisi Penyiaran Indonesia), and transformed TVRI and RRI (stateowned companies) into public broadcasters. Corresponding to rapid changes in ICT technologies and demand of having a more competitive industry, the government needs to strengthen its regulatory capacity focusing on issues, among others, broadband, convergence, more efficient spectrum allocations, and digital broadcasting. 7. Priority Infrastructure 8. Objectives To strengthen regulatory capacity in Information and Communication Technology (ICT) are focusing on issues, among others, broadband, convergence, more efficient spectrum allocations, and digital broadcasting. 9. Activities a. Analog to digital FM broadcasting transition plan in Indonesia b. Improving standardization system formulating technical regulation c. Master plan study for formulating telecommunications policy on promoting competition and establishment broadband network

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Code No: T-03-05900-0409-066176 d. e. f. g. h. i. Telecommunications policy advisor Capacity development of broadcasting strategy formulating and planning Improvement for the management of the public broadcaster in Indonesia Master plan of the network of the TVRI broadcasting facility Disaster prevention (early warning) in terms of role of concerned government organization and optimized method of transfer of information to the public Study for contribution of development telecommunication industry to gross national product

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 7,666,000 0 7,666,000 1,073,000 0 0 0 1,073,000 8,739,000 Expenditure: Foreign Expenditure Local Expenditure TOTAL : US$ : US$ : US$ 0 8,739,000 8,739,000

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Code No: T-03-05900-0409-066184 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency) : Improvement of Information and Technology Facilities : 36 months : DKI Jakarta : Ministry of Communication and Information : Ministry of Communication and Information

6. Background and Justification As elucidated in the Medium Term National Development Plan 2004-2009 (Rencana Pembangunan Jangka Menengah Nasional), there are 3 main agendas in Posts and Information and Communications Technology (ICT) sector which are: (1) sector reforms; (2) infrastructure expansion; and (3) ICT development and utilization. The second agenda, infrastructure expansion, focuses on provision of infrastructure and services both in commercial and non-commercial areas. In commercial areas, the government pays attention to network widening, deepening, and innovation through Public-Private-Partnership in the forms of licensing and agreement, while in noncommercial areas, the focus will be to expand coverage to blank spot areas. 7. Priority Infrastructure 8. Objectives a. To stimulate and drive infrastructure especially on infrastructure Industry for investors, consultant, contractors, suppliers and financiers from either banking or non-banking. b. To close collaborations between government and private sector to develop infrastructure. c. To support regional government participate and take chance potentials in the region. d. Purpose of this project is to develop successful multi-purpose telecommunication center models for Smart Village program to be launched in 2010. e. To development transmitter stations Radio Republic of Indonesia (RRI) at remote area 9. Activities a. Advanced Rural Multipurpose Telecommunications Center b. Detailed Feasibility Assessment of Palapa Ring Project c. Project for Expansion of Radio Broadcasting Coverage in the Remote Areas

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Code No: T-03-05900-0409-066184 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,202,000 0 2,202,000 150,000 0 0 0 150,000 2,352,000 Expenditure: Foreign Expenditure Local Expenditure TOTAL : US$ : US$ : US$ 0 2,352,000 2,352,000

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Code No: T-03-05900-1005-066187 1. Project Title 2. 3. 4. 5. : Development of Information and Communication Technology Applications and Human Capacity Duration : 36 months Location : DKI Jakarta Executing Agency : Ministry of Communication and Information Implementing Agency : Ministry of Communication and Information

6. Background and Justification As elucidated in the Medium Term National Development Plan 2004-2009 (Rencana Pembangunan Jangka Menengah Nasional), there are 3 main agendas in Posts and Information and Communications Technologies (ICT) sector: (1) sector reforms; (2) infrastructure expansion; and (3) ICT development and utilization. The third agenda, ICT development and utilization, aims at increasing e-literacy as well as developing applications and local content to support promotion of ICT. The focus areas are, among others, human capacity building, such as training including provision of training facilities; development of multimedia content management and open source; and pilot project of e-government at local government level. 7. Priority Infrastructure 8. Objectives a. Plan and manage the study plan in order to train the trainer for regional government to improve the knowledge and skill of IT of regional people. b. Plan and manage the study plan cope with the IT certification to support establishing IT certification. c. Train the IT contents creator and system engineer for support planning and managing the study plan. d. Establishment of remote lecture system and education system, IT training and IT content creating facility. e. To raise the awareness of alternative low cost open source software f. To increase/support development of local content/software g. To enhance skill and competency of existing IT workers h. Construction of ICT training centre

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Code No: T-03-05900-1005-066187 9. Activities a. ICT Training Center (Vocational Training Center for workers in ICT) b. Enhancement of MMTC for HRD in ICT c. Improvement of ICT Training Center to strengthen ICT capabilities for government officials in the eastern part on Indonesia d. Training for RRI transmission engineer e. Pilot project of e-local government f. Multimedia content management g. Open source campaign h. TV documentary program production i. Group training for improvement of the ability of transfer engineers in RRI 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 10,331,000 0 10,331,000 1,290,000 0 0 0 1,290,000 11,621,000 Expenditure: Foreign Expenditure Local Expenditure TOTAL : US$ : US$ : US$ 0 11,621,000 11,621,000

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Ministry of Public Works

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Construction and Human Resource Development Agency Code No: T-03-03300-0490-066190 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development of Quality Management of Public Infrastructure Construction in Indonesia : 24 months : DKI Jakarta : Ministry of Public Works : Construction and Human Resource Development Agency, Ministry of Public Works

6. Background and Justification The Center for Implementation of Construction Development is a center under the Construction and Human Resource Development Agency (BPKSDM). The Center was established by the government of Indonesia to control, evaluate and promote the better use of public works infrastructure assets. The Center will operate and function for routine activity as required or for carrying out scheduled tasks (for example in road sector, more than 25.000 km of national road, 45.000 km of provincial road and 281.000 km of local and municipality road with not less than 1.000 km of bridge had been evaluated ). The primary clients of the Center are the Directorate Generals within the Ministry of Public Works. In order to implement those functions effectively, the Center needs technical assistance to formulate the procedure and technical analysis (quality assurance) for evaluation and assessment of the quality and promotion of public works infrastructure assets utilization. 7. Priority Infrastructure 8. Objectives The main output project is in line with decentralization program i.e. to achieve a good quality of infrastructure assets that can benefit communities through effective and efficienct of construction, operation, and maintenance. The goals are as follow: a. Availability of the standard technical specification as countermeasure quality; b. Availability of the construction management system which can be used for the implementation of the task; c. Availability of the procedure for evaluation and assessment of the quality and benefits of the infrastructure; d. Availability of the Asset Management System that can help in the evaluation and optimizing the assets.

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Code No: T-03-03300-0490-066190 9. Activities To analyze and evaluate the current quality assurance system; To develop quality assurance system for infrastructure of Public Works projects; To develop standard specification for quality control; To develop the procedure and technical analysis for evaluating the benefits of infrastructure asset; e. To develop the procedure and technical analysis for assessing the quality and propose remedial action; f. To develop a concept operational and maintenance of assets, and to increase the benefit of assets with respect to encourage the community to be involved; g. To analyze and evaluate the current Management Information System in the Directorate Generals, such as; IRMS, IBMS and URMS and their results, in developing asset management system absed on the current prototype. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 75,000 0 0 0 75,000 1,075,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,075,000 1,075,000 a. b. c. d.

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Code No: T-03-03300-0490-066191 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Technical Assistance for Construction Service Development and Reform : 24 months : DKI Jakarta : Ministry of Public Works : Construction and Human Resource Development Agency, Ministry of Public Works

6. Background and Justification The enactment of Law No. 18/1999 signals the shift of responsibility in construction development from the government to the construction communities, including service suppliers. However, facilitation from the government in this area is still required to assure appropriate implementation of the task. In the mean time, the construction sector is facing global competition as a consequence of the regional and global liberalized market. The project will assist the Construction and Human Resource Development Agency, among others in reforming policy on construction sector (regulation, policy, institution, professionalism, and competency), formulating government facilitation to the construction industry, and educating construction sectors for preparing themselves in the global free market. 7. Priority Infrastructure 8. Objectives The project is expected to develop national policy on construction development leading to construction service independency, competency and professionalism as pre-requisites of global market competition. In order to achieve this goal, comparative study in developed countries (e.g. : Japan, etc.) is requred. 9. Activities a. To analyze and evaluate the construction development service policy; b. To develop recomendation of national policy suitable to Indonesia by taking inter account the effective policy implemented by neighboring countries and developed nations;

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Code No: T-03-03300-0490-066191 c. To develop manpower; d. To develop information centre and knowledge management in construction development; e. To organize trainings and seminars. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 75,000 0 0 0 75,000 2,075,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,075,000 2,075,000

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Code No: T-03-03300-0490-066192 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Capacity Building and Construction Management 24 months DKI Jakarta Ministry of Public Works Construction and Human Resource Development Agency, Ministry of Public Works

6. Background and Justification Implementation of national construction management has recently not been fully in accordance with Law No. 18/1999 regarding Construction Service and Government Decree No. 28/2000 and No. 30/2000. Therefore the role of the Central and Local Governments need to improve and enhance the Construction and Human Resource Development Agency (BPKSDM). To anticipate this requirement, the BPKSDM requires technical assistance for capacity building of the Central, Provincial and Local government institutions which oversee the construction development, including the human resource development (SDM), policy development and implementation support. 7. Priority Infrastructure 8. Objectives To achieve operationalization of national construction in accordance with Law No. 18/1999 and Government decree No. 28, 29, 30/2000 in line of regional autonomy. 9. Activities a. To analyze and evaluate the condition of construction development; b. To improve the construction development organization system suitable to the local condition; c. To develop manpower within training and education (degree and non degree); d. To provide their need with the necessary equipment for supporting implementation; e. To Implement the output study in the pilot area.

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Code No: T-03-03300-0490-066192 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,075,000 0 2,075,000 75,000 0 0 0 75,000 2,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,150,000 2,150,000

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Agency for Research and Development Code No: T-03-03300-0404-066193 1. Project Title 2. 3. 4. 5. : Capacity Development for River Basin Organizations (RBOs) in Practical Water Resources Management and Technology Duration : 36 months Location : National wide Executing Agency : Ministry of Public Works Implementing Agencies : a. Directorate General for Water Resources (DGWR), Ministry of Public Works b. Agency for Research and Development, Ministry of Public Works

6. Background and Justification In the recent decades, Indonesias water resources management has increasingly been becoming complex long-term problems and facing investment challenges. Unless effectively addressed, it will increasingly constrain the countrys economic development and food security. The problems arise from the negative impacts of rapid increased of population growth, economic development, urbanization, and industrialization. To cope with these issues, the Government of Indonesia (GOI) has been making efforts to establish and promote Integrated Water Resources Management (IWRM) which is practiced at River Basin level. Accordingly, GOI will establish about 30 River Basin Organizations (RBOs) under central government and about 50 RBOs under provincial government, starting from 2007, as institutions responsible for water resources management in River Basin. RBOs are expected to play very important roles for IWRM in Indonesia and they are required to have enough capabilities in terms of practical management and technology to anticipate above conditions. However, their capabilities for effective water use and Operation and Maintenance (O&M) of water resources infrastructure, are still insufficient. Hence, strategic and systematic program capacity development of RBOs must be launched at this point in time. 7. Priority Infrastructure 8. Objectives a. To empower the plan of Research Center for Water Resources (RCWR) and its initial operation; b. To establish plan of Dissemination Unit for Water Resources Management and Technology (DUWRT) and its initial operation; c. To concept the guideline for RBOs in practical water resources management; d. To concept the texts and materials for RBOs training. T- 177

Code No: T-03-03300-0404-066193 9. Activities a. Study and assessment of current situation about capacity of water resources management in Indonesia; b. Empowerment of Research Center for Water Resources (RCWR). Function of study basin information, water allocation and effective water use, river management, infrastructural management and coordination/participation for stakeholders will be empowered; c. Establishment of the DWURMT. The unit will have functions on preparation of guidelines for RBOs in practical management and technology, training for RBOs with texts and materials, center of information on RBOs, consultation for RBOs, assistance for pilot RBOs as case study and assistance of planning RBOs project. Empowered RCWR will assist DWURMT in knowledge and human resources. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 8,641,000 0 8,641,000 1,296,000 0 0 0 1,296,000 9,937,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 9,937,000 9,937,000

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Code No: T-03-03300-0404-066194 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development of Integrated River Zone Design (IRZD) Model : 24 months : Jambi : Ministry of Public Works : Agency for Research and Development, Ministry of Public Works

6. Background and Justification Whenever an act taken by human, such as waterfront heritage and urban conservation development, which negatively affects the environment, it must also be restored or a new environment needs to be created to offset the damage. The concept of this integrated model is supported by various functions of riverbank zone to resolve the conflict caused by building the environment. 7. Priority Infrastructure 8. Objectives a. To increase the environmental capacity of the riverbank; b. To achieve a smooth flow among the water, soil, energy, flora and fauna needed in this end; c. To gain the health and safety of environmental foundation, which support the three areas of disaster prevention, utilization and ecology, maintained in areas such as topography, soil quality, water quality, and air quality in order to maintain and promote the riverbank zone; d. To examine Batanghari River environment zone consist of function: disaster prevention, utilization and determine ecological factor. 9. Activities a. Data collection and preparation study: environmental condition including structure and system; b. Status of the riverbank environment in Jambi; c. Assessment the change in natural, semi artificial and artificial riverbank areas, natural riverside; d. Develop the theoritical framework for integrated riverbank zone management T- 179

Code No: T-03-03300-0404-066194 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 100,000 0 0 0 100,000 1,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,100,000 1,100,000

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Code No: T-03-03300-0104-066195 1. 2. 3. 4. 5. Project Title : Duration : Location : Executing Agency : Implementing Agency : Establishment of Laboratory for Coastal Management in Bali 12 months Buleleng, Bali Ministry of Public Works Agency for Research and Development, Ministry of Public Works

6. Background and Justification Indonesia is the largest archipelago country in the world which consists of approximately 17,000 islands, and has about 81,000 km of coastline. In proportion to the long coastline, Indonesia is facing coastal management problems, such as coastal erosion, river mouth clogging, storm surge, tsunami, contamination of coastal water and destruction of coastal ecosystem including illegal coral mining and logging of mangrove forest. The tsunami disaster on Dec. 26, 2004 has made the Government of Indonesia (GOI) understand the importance of coastal protection and coastal management. In addition, global warming and disorderly development of coastal areas has been further aggravating the situation. It is anticipated that the effect of sea level rise resulting from the global warming will have a serious impact on coastal areas. Considering the coastal problems including the tsunami, beach erosion and global warming, huge economic losses have inflicted fisheries and tourism and coastal residential properties, so that countermeasures for coastal protection and environmental conservation are urgently required and capacity development for coastal engineers and researches of GOI is an essential prerequisite for the smooth implementation of the countermeasures. Under these circumstances, it is important to establish a laboratory for Coastal Management in Bali as a national center for coastal engineering in order to train the center/local governmental personnel, foster Research Institute of Water Resources (RIWR) researchers and develop costal engineering in Indonesia for better coastal protection and management. 7. Priority Infrastructure 8. Objectives Establishment of Laboratory for Coastal Management in Bali as a national center for coastal engineering in order to train the center/local governmental personnel, foster RIWR researchers and develop coastal engineering in Indonesia for better coastal protection and management.

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Code No: T-03-03300-0104-066195 9. Activities a. b. c. d. Construction of the laboratory building with experimental equipment; Gauging equipment for filed inspection; Database system for nation-wide coastal management; Researchers and their assistance capable of operating and maintaining the above equipment.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 14,674,000 0 14,674,000 2,201,000 0 0 0 2,201,000 16,875,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 16,875,000 16,875,000

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Code No: T-03-03300-0410-066196 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Risk Management on Development of Coastal Area in Indonesia; An Application of Global Information System (GIS) : 24 months : National wide : Ministry of Public Works : Agency for Research and Development, Ministry of Public Works

6. Background and Justification Compared to developed countries, the vulnerability of coastal areas in developing countries is much higher but research concerning the risk assessment and management in order to reduce the vulnerability of the area is very limited. Furthermore the research concerning risk assessment and management of coastal area in developing countries is really important. Indonesia, is one of developing countries with many activities is located in coastal area, which is growing rapidly, is a country which is needed and interesting to be investigated. With regards to the condition the research is intended to better describe, quantitatively and qualitatively the risk because of impact of global climate change to the socio, economic, and spatial condition of Indonesia coastal area as a basic for strengthening capacity of the government in particular local government. The importance on strengthening local capacity in Indonesia is very significant since the authority of local government to manage their regions is much bigger following the implementation of Law No. 22/1999 concerning local government autonomy but on the other hands they are not yet supported well by their capacity. 7. Priority Infrastructure 8. Objectives a. To provide insight into the specific socio, economic, and spatial condition of coastal area on future impacts; b. To establish a platform to incorporate risk analysis because of the impact of sea level rise into spatial planning both at the national and local areas.

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Code No: T-03-03300-0410-066196 9. Activities a. Identification study of vulnerability of coastal area regarding impact of sea level rise; b. Evaluation of spatial planning policies of coastal area; c. Application of GIS on risk management; d. Capacity building for researcher and local government official. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 75,000 0 0 0 75,000 1,075,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,075,000 1,075,000

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Code No: T-03-03300-0506-066197 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Comprehensive Study on Groundwater Management for Semarang City : 28 months : Central Java : Ministry of Public Works : Agency for Research and Development, Ministry of Public Works

6. Background and Justification Over exploitation of groundwater has been a serious issue in major cities of Indonesia, due to lack of surface water development, inefficient use of water resources. Capital cities development, with increase population, forces the people withdraws groundwater to fulfill their water demand, mainly for industrial use. Serious land subsidence occurred, has caused tidal floods, abandonment of buildings, heightening of structures and salinity intrusion into groundwater. Though the Indonesia Government has conducted some investigations on this issue, unfortunately mitigation measures for Semarang City have not succeeded yet. According to many facts, we have come to the conclusion that The Groundwater Management in Indonesia is far from being perfect, since the groundwater managing agencies are numerous and each has its own strengths and weakness, policies and strategy, interest, function, duties, and responsibilities. The goals of each agency are reached through program that are not synchronized or overlap with those of others. Such practice, in turn, gives environmental and social impact and water crisis. 7. Priority Infrastructure 8. Objectives a. To formulate a master plan on flood control, urban drainage and water resources development; b. To carry out a feasibility study for the urgent project of river improvement works for west floodway/Garang River; c. To carry out feasibility study for the priority projects which are to be selected in the master plan; d. To carry out transfer of technical knowledge to the Indonesian staff concern.

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Code No: T-03-03300-0506-066197 9. Activities a. To carry out the basic study: on items that will be studied for comprehending the present natural and social conditions of Semarang Municipality and major cities on Java island; b. To carry out the master plan study on the basis of the basic study: The master plan will introduce a new strategy for sustainable water resources development of the area considering mitigation of land subsidence with the management of groundwater withdrawal and surface water development based on not only numerical simulation result of land subsidence in accordance with several future scenarios including withdrawal control but also reuse of water, artificial groundwater recharge, organization and institution, monitoring system and others; c. Implementation Pilot Project and Monitoring will be conducted and monitored to verify the viability of the purposed countermeasures on land subsidence. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 40,000 0 0 0 40,000 1,040,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,040,000 1,040,000

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Code No: T-03-03300-0104-066198 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Study on Preservation Measures for the Existing Large Scale Dam Reservoir : 24 months : National wide : Ministry of Public Works : a. Agency for Research and Development, Ministry of Public Works b. Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification In Indonesia, many storage type dams have been constructed so far for municipal and irrigation water supply and hydroelectric power generation. In general, there are two seasons, namely the dry and rainy seasons in Indonesia. Recently, it was reported a water deficit has occurred in the dry season every year. In order to utilize water resources effectively, establishment of countermeasure against sedimentation of existing reservoirs/ dams is urgent and important issue. Because, construction of a large scale reservoir/dam newly is very difficult due to environmental and resettlement problems. The reservoir function has been declining by the sedimentation in reservoir, in case the sediment speed becomes faster than the planned one for some reasons, resulting in reduction of effective storage volume of the reservoir and life. Since the management system for existing reservoirs has not yet been established to a satisfactory extent in Indonesia, it is rather hard to quickly confirm the current sedimentation situations of existing reservoirs. The Central Government of Indonesia has not yet established a nation-wide system to monitor, collect and store the data/information on reservoir sedimentation. Thus the issues on deteriorated reservoir functions of existing dams have been left unresolved with no effective countermeasures because of lack of monitor and management system and arrangement of budget, even if the importance of countermeasures against sedimentations is recognized. The Government of Indonesia has commenced examination on sustainable use of existing dams/reservoirs in consideration of the limited availability of water resources to cope with the increasing water demand in Indonesia. 7. Priority Infrastructure

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Code No: T-03-03300-0104-066198 8. Objectives a. To make a diagnostic survey and study of existing dam and reservoirs in view of effective utilization of developed water resources; b. To conduct a master plan study and pre-feasibility study of the selected priority projects; c. To establish reservoir sedimentation monitoring system within Public Works Department through the capacity development; and d. To transfer knowledge on technological measures for rehabilitation of reservoirs and watershed management to the government personnel and counterparts who would participate in the study. 9. Activities a. Formulation of Countermeasures for reservoir sedimentation 1) Clarification of present situation of dams/reservoirs; 2) Formulation of preservation measures for prioritized existing large scale dam/reservoir; 3) Formulation of preservation measures for the most prioritized reservoirs. b. Examination of management system for existing dam/reservoir; c. Capacity building for monitoring framework. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 75,000 0 0 0 75,000 1,075,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,075,000 1,075,000

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Directorate General for Highways Code No: T-03-03300-0408-066210 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Road Policy Advisor : 24 months : DKI Jakarta : Ministry of Public Works : Directorate General for Highways, Ministry of Public Works

6. Background and Justification Roads are the most fundamental infrastructure which contributes to people's better quality of life and to sustainable development of the society as well as to economic growth of the country. However here in Indonesia, since the economic crisis in 1997, the road development projects and maintenance works have suffered from a substantial budget shortage, which has often led to the suspension of projects and a deterioration of existing roads. In addition, under the government's recent policy of decentralization, it has become an urgent issue that the capabilities of local authorities for road administration in both planning and engineering aspects should be strengthened. To cope with the above mentioned situation the New Road Law was enacted October 2004, and the related government regulations have been and are to be issued. Now, the economy is recovering and to make the recovery more stable the government strongly recognizes the importance of infrastructure development. In view of the said circumstances the Government of Indonesia has requested the donors to dispatch a successor or extend the expert on road policy to the Directorate General for Highways and to continuously contribute to the policy making and road improvement project formation. 7. Priority Infrastructure 8. Objectives To establish and implement rational and efficient road policy with decentralization process and private sector involvement to be taken into consideration. 9. Activities a. To provide advice and/or guidance on road sector issues and to assist formulation of road policy and projects. b. To support on-going studies and projects for their smooth implementation.

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Code No: T-03-03300-0408-066210 c. To foster coordination and cooperation between government agencies and private sector to facilitate a private sector involvement in road projects. d. To enhance the capacities of local governments and of stakeholders concerned in road administration through the technical cooperation. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-03-03300-0408-066211 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Capacity Building for Asset Management of Roads and Bridges : 36 months : Jakarta, Bandung, South Sumatra : Ministry of Public Works : Directorate General for Highways, Ministry of Public Works

6. Background and Justification In Indonesia, since the economic crisis in 1997, the road development projects and maintenance works have suffered from substantial budget shortages, which have often led to the suspension of projects and a deterioration of existing roads. At the same time the maintenance cost of existing roads and bridges is increasing due to aging. Since the construction of roads and bridges is still crucial for economic growth, under increasingly restricted budget policy, the government needs to seek the most efficient and effective way of development and management of roads and bridges. 7. Priority Infrastructure 8. Objectives a. To maintain road and bridge conditions at a required level of service in a most efficient and effective way throughout their life time b. To provide tools for decision-making process to identify an optimal allocation of resources c. To analyse based on reliable data to evaluate and predict current and future conditions of the assets d. To introduce the asset management to relevant institutions e. To train people of the institutions to understand and work on this new concept. 9. Activities a. On the job training for officials in charge by experts. b. Seminars, workshops, trainings for engineers and officials of the related institutions.

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Code No: T-03-03300-0408-066211 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-03-03300-0408-066212 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Capacity Building for Public-Private Partnership (PPP) Operation : 48 months : DKI Jakarta : Ministry of Public Works : Directorate General for Highways, Ministry of Public Works

6. Background and Justification Toll road projects have been implemented by government fund, namely the Jasa Marga fund, and Building, Operate, and Transfer (BOT) scheme. However the current economic conditions and financial uncertainty in Indonesia have constraint project financing. Also conventional BOT scheme has been discouraged due to intolerable risks for the private sector including low prospective profitability. With the existing financial constraints, new and stable sources of fund are required through the PPP scheme. After formulating an optimum PPP scheme it is crucial to know how to implement a PPP project during a construction and operation period of about 30 years. The public sector should lead the private sector in working together under reasonable business condition by providing the necessary documents, practices, and regulations. 7. Priority Infrastructure 8. Objectives Toll road projects have been implemented by government fund, Jasa Marga fund and BOT scheme. However the current economic conditions and financial uncertainty in Indonesia induce certain constrains in project financing. Also conventional BOT scheme has been depressed due to intolerable risk for the private sector including prospective low profitability. With the existing financial constraints, new and stable sources of fund are required through PPP scheme. At present, The Study on Public-Private Partnership (PPP) Scheme for Trans Java Toll Road is being carried out by JICA. The result of the study is expected to not only formulate an optimum PPP scheme but also propose project implementation plan including a guideline for administrators. The project is to train government officials of the PPP related institutions to understand and work on this new scheme with following: a. Setting up PPP administration unit in Ministry of Public Works; b. Administrating, monitoring and controlling the PPP toll road development project;

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Code No: T-03-03300-0408-066212 c. Providing necessary supports from the Government; d. Monitoring the private actors (developer and investor) in terms of integrity and compliance; e. Supervising the financial flows of the PPP project. 9. Activities The project is to train government officials of the PPP related institutions to understand and work on this new scheme encompassing the following activities: a. Setting up the PPP administration unit in Ministry of Public Works; b. Administrating, monitoring, and controlling the PPP toll road development project; c. Providing necessary support from the Government; d. Monitoring the private actors (developers and investors) in terms of integrity and compliance; and e. Supervising the financial flows of PPP projects. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-03-03300-0408-066213 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Feasibility Study and Detailed Design Padang By Pass Capacity Expansion and Duku Fly Over : 12 months : West Sumatera : Ministry of Public Works : Directorate General for Highways, Ministry of Public Works

6. Background and Justification The Padang By Pass is the road which meets the need for the transport facility from and to the Kataping International Airport and the port of Teluk Bayur. The traffic growth for these links has increased through the years. The Padang by pass road is needed to anticipate regional development due to the operation of Minangkabau Airport and Bingkuang Regional Terminal, also Teluk Bayur Seaport development plan. 7. Priority Infrastructure 8. Objectives Padang By Pass was the road which have a function to provide the need of the transport facility from and to International Airport Kataping and the port of Teluk Bayur. The traffic growth for this links has been increased year by year. Referring to the Padang By Pass Project Study by Korea Consultant International in 1987, they had been estimated that in year 1994 the AADT (Annual Average Daily Traffic) was 6988. Padang by pass road is needed due to anticipate regional development due to the operation of Minangkabau Airport and Bingkuang regional Terminal, also Teluk Bayur Seaport development plan. GOI has been proposed the loan to EDCF (Korea) for funding the Padang By Pass Project, due to the age of the Feasibility Study Document and DED the GOI seek the grant from Korea to do the review of Feasibility Study and DED for Padang By Pass Project. 9. Activities To do the review for Feasibility Study which has been done in year 2005 by Provincial Government of West Sumatra and the review of DED that has been done in year 1987.

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Code No: T-03-03300-0408-066213 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 0 0 0 0 0 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,000,000 3,000,000

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Code No: T-03-03300-0408-066214 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Study on Arterial Road Network Development Plan for Sumatra Island : 12 months : 9 Provinces in Sumatra Island : Ministry of Public Works : Directorate General for Highways, Ministry of Public Works

6. Background and Justification Covering 480,849 Km2 Sumatra Island is geographically and culturally diverse. Inhabited by 44,846,000 population (estimation, BPS 2005), with most of the region being potential for farming, mining and fishing. Sumatra Island has a national road of 10,588.91 kilometers, while the length of provincial road is 16,046.79 kilometers, regency road is 83,320 km. In order to prepare a road network development plan for Sumatra, appropriate to emerging growth a 44 kilometers and urban road is 7,106.00 kilometers. In order to prepare a road network development plan for Sumatra, appropriate to emerging growth and development needs over the next 20 years, the study of arterial road network development plan for Sumatra Island is necessary. 7. Priority Infrastructure 8. Objectives a. To formulate of Sumatra Island arterial road master plan b. To prepare action plan for implementation of the arterial road development 9. Activities a. Analysis of recent condition, consist of national and regional plan/program, donor action for road development, transportation condition, land use, social-economic condition, natural condition, trade and distribution, social and environmental concern b. Survey, consisting of road network inventory survey, traffic survey, OD and vehicle speed at selected sites c. Formulation plan consisting of a traffic forecast, development strategies, road development plan, master-plan (cost estimation, economic evaluation), and action plan.

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Code No: T-03-03300-0408-066214 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 0 0 0 0 0 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,000,000 3,000,000

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Directorate General for Human Settlements Code No: T-03-03300-0690-066235 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Review All of Standards, Manuals, and Regulations Related to Building : 24 months : DKI Jakarta and West Java : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Indonesia consists of 13,000 islands which are located in South East Asia. Some of the islands are located on the Circum Pacific earthquake lines. This circumstance requires that most buildings in the area should be constructed in accordance with special technical standards. The Government of Indonesia has issued Act of the Republic of Indonesia No. 28 of 2002 on Buildings and enacted on December 16, 2002, and has also issued Governmental Regulation No. 36 of 2005 for the Implementation of Act of the Republic Indonesia No. 28 of 2002. This governmental regulation was issued on September 10, 2005. Before the above act and regulation were issued, the Government had stipulated a number of technical standards concerning natural disasters especially earthquakes. The Government is going to undertake some review of those technical standards including other manuals and regulations that has been set up in the Indonesian Building Codes (No. 441/M 1998.) After the tsunami disaster struck in Aceh in 2004, resulting extensive damages of buildings and housings so that the previous technical standards seem to be out of date particularly in relation not only to earthquakes but also to tsunamis. 7. Priority Infrastructure 8. Objectives To improve building standards, guidelines, manuals, and local government regulations related to earthquake by testing model houses. 9. Activities a. Review of national technical standards related to building code (loading code, concrete code, steel code, timber code, building materials code, including base isolation technology); b. Review of technical guidelines and manuals related to earthquake and tsunami;

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Code No: T-03-03300-0690-066235 c. Review of local government regulation related to earthquake; d. Develop technical and practical guidelines for construction of houses and retrofitting vulnerable houses; and e. Research, testing, and model houses projects. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 8,600,000 0 8,600,000 1,720,000 0 0 0 1,720,000 10,320,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 10,320,000 10,320,000

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Code No: T-03-03300-0603-066236 1. Project Title 2. 3. 4. 5. : Study on Water Supply Development for the Prambanan Area Duration : 24 months Location : Klaten, Central Java Executing Agency : Ministry of Public Works Implementing Agency : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Indonesia is a large country which is also very vulnerable to such natural disasters as earthquakes, floods, fires, tsunami, etc. Indonesia recently has been affected by a series of disasters such as tsunami in Aceh, flood in South Sulawesi, Gorontalo, earthquake in Yogya/Central Java and the latest is the earthquake and tsunami in Pangandaran West Java. The earthquake disaster in Yogya/Central Java in May 2006 has damaged the water supply system especially at distribution pipeline system which need rehabilitation and reconstruction. Nowadays the main responsibilities to provide infrastructure and utilities services for the public, is owned by the local governments (Regency and Municipality), which include the planning, provision, financing, management and construction of water supply systems. But, there are many problems faced by the local government to provide excellent public services such as water supply in their area. Some of the problems are lack of financing and lack of technical experts. The piped water supply in urban areas is provided by the Regional Water Company (Perusahaan Daerah Air Minum or PDAM) owned by the local governments. The rapid growth of population in Indonesia especially in urban areas has created a big problem in the provision of water supply, especially piped water supply, in this country. The local government is committed to improve the condition of the water supply sector and also to achieve the Millennium Development Goals (MDG) 2015 target which will require extraordinary efforts. In this respect, policies are necessary to create an enabling condition for reform and to boost investment in this sector. In spite of some problems mentioned above (e.g., management/governance, availability and sustainability of water and characteristic of demand), it is absolutely necessary for the local government to increase the total production of piped water supply to achieve the target of MDG 2015. The major demand for piped water comes from households, which most of them can not afford the initial cost for house connection. 7. Priority Infrastructure

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Code No: T-03-03300-0603-066236 8. Objectives To increase service quality of existing systems and condition: a. Rehabilitation and reconstruction of water supply systems; b. Improving the quality of services by applying minimum standard of services; c. Capacity building of PDAM human resources. 9. Activities a. Prepare the development study; b. Prepare of Detailed Engineering Design (DED) including the requirement layout of the network system; c. Prepare of action plan in some priority area. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 200,000 0 0 0 200,000 1,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,200,000 1,200,000

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Code No: T-03-03300-0605-066237 1. 2. 3. 4. 5. Project Title : Duration : Location : Executing Agency : Implementing Agency : Technical Assistance on Building Development Management 12 months National wide Ministry of Public Works Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification The Government of Indonesia has enacted the National Building Act No. 28/2002 dated 16 December 2002 as the national regulatory framework for local regulations in building development management. This Act contains stipulations on building management covering buildings construction, management, function, conditions and community involvement. Even though the national government has enacted the National Building Act, the implementation of the Act has not been efficiently carried out by local governments as there are no detailed local acts or an adequate capacity of agencies at the local level. With regard to decentralization and local government autonomy as stated in Act No. 22/1999, each local government has developed its own policy and development scheme especially in housing development. In parallel, each local government has the responsibility to provide its own set of operational regulations, or so called Local Acts, that stipulate local policy congruent to the national Act in order to guide regional development. The central government has the responsibility to provide assistances to local governments in formulating Local Acts on Buildings and to ensure the execution of those regulations. 7. Priority Infrastructure 8. Objectives The project will assist the Government to assemble teams to provide assistances to local governments to prepare Local Act on building management and to improve capacity building of local agencies in this matter. 9. Activities The output of the project is the formulation and enactment of local acts on building management

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Code No: T-03-03300-0605-066237 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,110,000 0 5,110,000 1,620,000 0 0 0 1,620,000 6,730,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,730,000 6,730,000

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Code No: T-03-03300-0603-066238 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Technical Assistance for Batam Sewerage Project 8 months Batam City, Riau Ministry of Public Works Batam Industry Development Authority (BIDA)

6. Background and Justification Batam Industry Development Authority (BIDA), supported by the Local Government, intends to develop the infrastructure for a comprehensive system of sewerage collection and treatment for the urban area of Batam Island. Presently, there is a limited area served by waste water serviceable sewerage system in Batam i.e. Batam Center comprising individual septic tanks and waste water facilities with capacity of 33 l/sec with primary collection system without house connections. BIDA proposes a project to develop complete infrastructure for a piped sewer system and centralized sewerage treatment plan to serve all housing properties in the district of Batam Centre. In addition, the project will provide the collector equipment, sludge treatment and disposal facilities required to implement a formal system of septic tank management in all areas outside of Batam Centre. Currently no such system exists. Under the project, it also intended to establish a commercial corporation to be responsible for the operations and management of the full range of sewerage services provided under the project and as expanded and develop beyond the scope of the project. It is envisaged that the operations and management corporation will be a private sector company established specifically for this purpose. The project is expected to the first phase of a sewerage system that will eventually cover all of Batam Island. For this purpose, a Feasibility Study was prepared by Columbus Newport on November 2005 an need to review, update, and also completed with Detail Engineering Design and estimated project cost. 7. Priority Infrastructure 8. Objectives a. To Develop waste water treat collection facilities and plan; b. To improve the quality of environment i.e. water, air and soil from domestic waste water pollution; c. To increase health quality of people mainly leaving in urban area.

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Code No: T-03-03300-0603-066238 9. Activities Review and update the earlier feasibility study; To design sewerage system project for a ten year planning period; To prepare cost estimate for physical and non physical works recommended; To prepare financing plan for the recommended project ( central, province, local government, donor agencies and private sector); e. To prepare institutional and legal aspect to manage the project during construction and after construction (operation and maintenance); f. To prepare an appraisal document. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 0 100,000 0 0 0 100,000 1,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,100,000 1,100,000 a. b. c. d.

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Code No: T-03-03300-0603-066239 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Water Supply Development for Kediri Municipality 36 months Kediri City, East Java Ministry of Public Works Local Government of Kediri Regency

6. Background and Justification Kediri is one of the developing city in Indonesia with number of populations is about 241.170. To serve the demand for water, Kediri Municipality, through Local Government Water Company (PDAM), has been delivering water to the 12.108 unit households or 30% from the total populations. This number is not really satisfying, regarding higher number of people in the future and pollutions of ground water sources. On the other hand, PDAM Kediris performance is not high-qualified. It is shown from number of Unaccounted for Water (UfW) which is reached 45%. Based on that, PDAM Kediri needs some assistance to help them to improve their performance so that they can deliver water and increase their coverage and also improve its water quality. 7. Priority Infrastucture 8. Objectives a. Water supply service was expected to give the community a better health; b. Increasing the economy of the community; c. Increasing the coverage of population service from 30% to 60% in 2011. 9. Activities a. Feasibility Study (FS) and Detailed Engineering Design (DED); b. Human resources development program; c. Rehabilitation of the distribution pipeline system and replacement of the main water meter (reducing of the water leakage); d. Renewing of the existing distribution pipeline system with the distribution pipeline zoning system; e. Provision of project aid; f. Construction of physical project.

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Code No: T-03-03300-0603-066239 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 400,000 0 0 0 400,000 2,400,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,400,000 2,400,000

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Code No: T-03-03300-0603-066241 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Water Supply Project in West Halmahera Regency, North Maluku Province : 24 months : West Halmahera, North Maluku : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Project area of West Halmahera is a newly developed regency in North Maluku Province after splitting from the previous Maluku province in 1999. The regency, is composed of 5 sub-regencies, Loloda, Ibu, Sahu, Jailolo, and Selatan, has an administrative area of 2, 614.24 km2. Jailolo is an administrative and busines center of the regency with a sea harbor that connects to Ternate and other islands in Indonesia. PDAM Halmahera Barat encounters technical, managerial, and financial problems as described below : a. The present coverage ratio, 6 % is very low in comparison to the national target of 80 %. In the Loloda, Ibu and Jailolo Selatan sub-regencies, the water supply system has not been developed yet. People depend on unsafe river water. b. Many house connections were vandalized during the conflicts that occurred in 1999. Because of leakages, the service reservoir in Sahu is operated, resulting in frequent water supply suspension. Repair and replacement is one of urgent need. c. Existing systems in Jailolo are not operated on continuous basis. Sufficient capacity of storage facilities are required to ensure continuity of pump operation. d. The PDAM of West Halmahera, since its establishment, has been suffering from lack of funds to recover costs for operation and maintenance. 7. Priority Infrastructure 8. Objectives a. To provide/upgrade the water supply services to the population in the regency who have suffered most from the conflicts; b. To upgrade the service coverage from the resent 6% to 50% by the year 2010, by augmenting new water supply systems; c. To promote water conservation and system efficiency; d. To organize financially feasible and autonomous water supply enterprise in the area. T- 209

Code No: T-03-03300-0603-066241 9. Activities a. Repairing or replacing damaged pipelines and connection in Jailolo and Sahu; b. Rehabilitating existing storage facilities in Sahu; c. Developing new water supply system taking raw water from the river and springs in Loloda, Ibu, and Jailolo Selatan; d. Constructing intake facilities, transmission mains, pressure release chambers, service reservoir, distribution mains, and service connections in Jailolo, Jailolo Selatan, Loloda, Ibu, and Sahu; e. Installing chlorine dosage equipment at service reservoirs. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,730,000 0 5,730,000 945,000 0 0 0 945,000 6,675,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,675,000 6,675,000

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Code No: T-03-03300-0690-066242 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Metropolitan Sanitation Management and Health Project : 12 months : National wide : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Indonesia is urbanizing rapidly. With urban population projected to increase from the current 45% of total population to 60% by 2025, reaching 160 million people by then. Basic urban services, including water supply and sanitation, are in crisis. Poor sanitation services are the cause of severe urban pollution, with impact on public health and well being of the population. Formal sewerage systems in Indonesia have been constructed in selected areas of a few large cities; but planned benefits of these systems have not been realized. Most are under-utilized and under-funded, and generally the whole sanitation sector is virtually unmanaged. Overall sewerage coverage is about 3% of the urban population. The vast majority of citizens rely on on-site sanitation (e.g. septic tanks, and pit larine); many other low-income families rely on grossly polluted drains and urban waterways. Sludge from septic tanks is removed by small private operators and mostly discharged into the nearest drain or river because treatment facilities are either unavailable or else too far away. Solid waste management, including collection and treatment of garbage, is another cause of concern. In general, solid waste management suffers from (i) low levels of investment, (ii) low standards of collection and transportation, (iii) poor community attitudes towards disposal of garbage, (iv) burning of garbage at neighborhood level and at final disposal sites that contributes to severe air pollution in many cities, (v) almost all solid waste disposal is conducted in complete disregard to regulations and acceptable practice, and (vi) fragmented institutional responsibility with several local government agencies involved. A large proportion of solid waste in discharged to city watercourses rivers, canals, and drainage channels that should be subject of a general clean up under a wastewater management program. Effective solutions will need to be developed to ensure that both sector components are improved under integrated programs. 7. Priorities a. Infrastructure; b. Poverty and Disparity Alleviation

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Code No: T-03-03300-0690-066242 8. Objectives The goal is to provide enhanced sanitation services (including wastewater collection and treatment and solid waste management) in large urban areas. The purpose is to: a. Reduce exposure of urban communities, particularly the low-income groups, from the health risks associated with the discharge of raw or partially treated sewage into city drains and rivers; b. Contribute to a significant reduction of polluting load into water bodies; c. Improve solid waste collection and treatment practices; d. Contribute to improved local urban environments and overall reduction of environmental pollution; e. Address serious institutional constraints affecting the sector. 9. Activities a. Develop the MSMHP; b. Prepare city sanitation strategies (CSS) for up to 5 large cities and subproject appraisal reports for up to 3 of these cities; and c. Prepare implementation support and institutional development programs addressing sector reform, governance, and public awareness. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others : US$ 0 Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,200,000 0 1,200,000 300,000 0 0 300,000 1,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,500,000 1,500,000

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Code No: T-03-03300-0603-066243 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Sector Survey on PDAM Asset Management : 12 months : National wide : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Indonesia is one of the lowest rates of water supply coverage; only about 17% of the population is served by PDAMs (Regional Water Company). The remaining populations, the large part who are poor, depend on individuals wells, small-scale water providers, or water vendors, often at high cost. New investments are necessary to expand the piped-water supply in order to improve public health and increase the water access rate. However, the magnitude of the financing gap is high and public resources cannot meet the needs for investment in the water sector; hence the Government of Indonesia (GOI) is considering the effective use of the limited resources and access private funds, where applicable, to fill up the investment gap. 7. Priority Infrastructure 8. Objectives The project purposes will be: a. Examine the investment needs of PDAMs (rehabilitation and new expansion) b. Assess current PDAM operations and possibility of private sector participation c. Deliberate a possible PDAM financing structure in Indonesia (including mobilizing private sector funds to the sector) 9. Activities The scope of work from the project that have to be assisted in its preparation: a. Conduct surveys among PDAMs in order to grasp the investment needs; b. Collect and analyze the updated legal and regulatory settings that streamline the process for funds channeling fro the central to regional governments and restructuring/rescheduling of existing PDAM debts; c. Classify the PDAMs into several groups to identify measures to be taken to improve their operations;

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Code No: T-03-03300-0603-066243 d. Assess appropriate water tariff level for customers; e. Develop a financing scheme; f. Develop capacity building and public awareness plans.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,000,000 0 4,000,000 600,000 0 0 0 600,000 4,600,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,600,000 4,600,000

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Code No: T-03-03300-0603-066244 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Capacity Building of Water Supply System Management (SPAM) Project : 36 months : National wide : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification A new water regulation, namely PP 16 (Regulation of the Government of the Republic of Indonesia Number 16 of 2005) regarding Development Drinking Water Provision System (SPAM) was promulgated in order to increase drinking water development. In this water regulation, the role of the central government, provincial government and regency/city government has been clearly established. The central government is responsible for determining the 1) national policies, 2) norms, standards, guidelines and manuals, 3) to establish the state owned corporation, 4) to give cross-province organizing license and 5) to determine raw water allocation for necessity of SPAM development, among other things. Even though, decentralization is still effective for the local matter (settlement and infrastructure) and PDAM is still responsible for the regional water supply but the central government will play an important role in order to enhance and facilitate water supply sectors with technical and financial assistances for water supply sectors including poor and unhealthy PDAM in the country. Piped water system in Indonesia is provided by 316 PDAMs but out of them only 10% is categorized as healthy and the rest are less healthy or critical. On the other hand, enhancement of institutions and regulations are very important to carry out the targeted objectives, which are required by PP 16, 2005. Capacity building for staff of the Ministry of Public Works and PDAMs will be necessary in order to improve SPAM and carry out the effective implementation of SPAM development in line with the PP 16. 7. Priority Infrastucture

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Code No: T-03-03300-0603-066244 8. Objectives a. b. c. d. e. Capacity Building Program; Assistance to improve Drinking Water Supply System Management (SPAM); Management and assessment of a drinking water supply services; Enhancement of institution, technical guidelines and law; Assistance to improve PDAM management capability.

9. Activities : a. Survey and analysis on Drinking Water System Provision Management (SPAM); b. Develop and Disseminate guidelines; c. Training on asset management for PDAM; d. technical assistance for reducing Unaccounted doe Water. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 180,000 0 0 0 180,000 1,180,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,180,000 1,180,000

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Code No: T-03-03300-0605-066245 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : Revitalization of Solid Waste Final Disposal System and Its Operation in the Municipalities of Banjarmasin, Palembang and Medan : 12 months : Municipalities of Banjarmasin (South Kalimantan), Palembang (South Sumatra), and Medan (North Sumatra) : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification In response to the growing volume of solid waste, and for the improvement of the environment, the betterment of the solid waste disposal system in the municipalities of Banjarmasin, Palembang and Medan. There are needs to revitalize Solid Waste Final Disposal System and its operation in those municipalities. 7. Priority Infrastucture 8. Objectives To achieve more effective and efficient process in utilizing the existing final disposal sites for future demand 9. Activities a. To evaluate existing final disposal sites, social and technical condition; b. To analyze future demand of the area for solid disposal sites, up to 10 years; c. To prepare technical feasibility of final disposal sites revitalization needed to meet the project demand; d. To prepare financial feasibility for revitalization of the existing final disposal sites with possibility of sharing financing from local government. Central and soft loan from bilateral agencies; e. To propose an action plan for local and central government to implement the revitalization program; f. To provide training for staff/operator for operating the revitalized system.

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Code No: T-03-03300-0605-066245 10. Project Cost Funding Source: Foreign Funding - Soft Loan : US$ - Grant : US$ - Export Credit/ Commercial Loan : US$ Sub Total : US$ 2,100,000 Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others : US$ 0 Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ 0 2,100,000 0 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,520,000 2,520,000

420,000 0 0 420,000 2,520,000

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Code No: T-03-03300-0690-066246 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : DED and Supervision Greater Yogyakarta, Sleman Regency and Bantul Regency : 24 months : Yogyakarta Municipality, Sleman Regency and Bantul Regency (Yogyakarta) : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Urbanized Yogyakarta agglomeration consists of Sleman Regency, Bantul Regency and Yogyakarta Municipality. The population in the year 2004 was around 1.2 million inhabitants and this amount will be much higher in the future. This population growth will caused higher demand for the water services in those areas, so there is a need to improve water supply capacity. Based on Law No. 77/2004 and PP No. 16/2005, it is suggested to develop mutual cooperation among several regencies and municipalities to make cost-effective cooperation. One area needs market to sell its water source and the others need water source to fulfill their demand and to increase their service coverage. 7. Priority Infrastructure 8. Objectives a. To plan and design water supply system development in Greater Yogyakarta, Sleman Regency and Bantul Regency; b. To provide standar operational procedure for operational and maintenance of water supply system; c. To supervision project. 9. Activities : a. b. c. d. e. f. g. Field Surveying, and measuring; Topografi survey; Soil investagation; Water investagation; Standar Aplication; Technical drawing; Technical calculation; h. i. j. k. l. m. n. To set and prepare documen tender; To set and prepare Engineer Estimate; Schedulling and staging; Investment plant action; Organitation plant action; Guidelines; Supervision Project.

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Code No: T-03-03300-0690-066246 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,600,000 0 3,600,000 720,000 0 0 0 720,000 4,320,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,320,000 4,320,000

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Code No: T-03-03300-0690-066248 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Master Plan and DED for Drainage in Mebidang Metropolitan Area : 6 months : North Sumatrra : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Ever since 1982 there have been several urban infrastructure development projects with the purpose of providing urban infrastructure which are required by the Mebidang Metropolitan Area (MMA) development, that include urban roads, flood control, drainage, solid waste, sanitation, drinking water and institutional building. Although those projects have been executed in order to solve the flood problem, until now the MMA area, particularly Medan City is not yet free from flood problems. This is due to the absence of a Master Plan and Detailed Engineering design (DED) of drainage for the MMA area, comprising Medan City and its hinterland. The drainage Master Plan and DED are essential as guidelines for drainage system arrangement and flood control that have to be integrated with the River Area System (SWS) which had been implemented partially in the past few years, has caused incapability in solving the flood problem in MMA area, especially Medan City. The problem is also caused by the limited funding ability of the local government in maintaining the existing drainage system, both macro and micro, resulting in the incapability of the local government to allocate appropriate funding source for drainage operation cost in order to reduce the flood problem in MMA area, especially in Medan City. 7. Priority Infrastructure 8. Objectives a. To compile the flood controlling plan for the MMA area; b. To compile the guidelines for drainage system arrangement and flood controlling which will be integrated with the River Area System (SWS) for the MMA area.

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Code No: T-03-03300-0690-066248 9. Activities a. Creating a drainage Master Plan for the MMA area; b. Creating drainage DED for the MMA area. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 100,000 0 0 0 100,000 1,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,100,000 1,100,000

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Code No: T-03-03300-0603-066249 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : The Preparation of Umbulan Spring/Greater Surabaya Water Supply : 12 months : Surabya Municipality, Pasuruan Municipality, Gresik Regency, Sidoarjo Regency, and Pasuruan Regency (East Java) : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification The Umbulan Spring is located about 60 km south of Surabaya City. The Springs 5,300 liters per second (l/s) has low variability and is the main source of the Rejoso river in the dry season. Direct users of Umbulans excellent spring water currently include a fish hatchery, small bore water supply, irrigation and tourism. At present, PDAMs of Surabaya Municipality, Pasuruan Municipality, and the Regencies of Gresik, Sidoarjo, and Pasuruan have plans to use the spring for future production. The indicative bulk water is needed by the PDAM (Regional Water Company) of Surabaya Municipality, PDAM of Gresik Regency, Sidoarjo Regency, Pasuruan regency, and Pasuruan City are 1,000l/s, 1,000 l/s, 1,399 l/s, 400 l/s and 400 l/s respectively. All five PDAMs are interested in developing this water source to the fullest. Future higher water allocations could be possible with due consideration given to the maximum safe water extraction and acquired water rights and downstream habitat needs. 7. Priority Infrastructure. 8. Objectives The project preparation will be the following activities: a. A study for the establishment of the Umbulan Pipeline Corporation which include carry out feasibility study for the set up a corporation which small own the Umbulan Pipeline through any of the prospective public private partnerships scheme; and b. Feasibility study and engineering design for the transmission pipe and the distribution system including preparation of the comprehensive engineering, financial, institutional, economical and environmental assessment for the project.

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Code No: T-03-03300-0603-066249 9. Activities a. Provide assistance in preparing the feasibility and detailed engineering design of the conveyance from the Umbulan Spring to the five participating local governments to an engineering level that allow responsive bids and preparation of bidding documents; and b. Provide assistance in preparing the feasibility study and preliminary design of the distribution systems to the potential consumers within the five regencies/ municipality. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 400,000 0 0 0 400,000 2,400,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,400,000 2,400,000

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Code No: T-03-03300-0603-066250 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Implementation Stage of Regional Water Supply Project 24 months DKI Jakarta Ministry of Public Works Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Unaccounted for water (UfW), also known as water leakage, is water production that does not generate income for PDAMs. In 2000, the UfW rate for Regional Water Companys (PDAM) varied between 22 and 43 per cent, with an average of 36 per cent. The UfW may be due to poor governance and management, such as water theft and weaknesses in recording, or to some technical reasons, such as physical leakages within the network. Some efforts to reduce the leakage include technical training, salary restructuring, monitoring and pipeline replacement. Cutting back the leakage linked to poor management is less costly and can be tackled through measures such as improving managerial skills. Investments required for drinking water. The amount of UfW in PDAM in 6 cities (Karawang, Purwakarta, Subang, Cianjur, Tasikmalaya, and Cirebon) is tent to increase during the last five years. 7. Priority Infrastucture 8. Objectives The objectives of the project is to assist the 6 PDAMs activities to improve their perfomances, focusing on Unaccounted for water reduction and information system on pipelines and supports central governments to improve capacity of management of PDAMs. 9. Activities a. Assist to improve performance of PDAM staff; b. Assist to prepare reduction of unaccounted for water; c. Follow up action for the PDAMs; d. Supports central government to improve capacity of management of PDAMs; e. The improved existing WTP and Intake.

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Code No: T-03-03300-0603-066250 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 900,000 0 900,000 200,000 0 0 0 200,000 1,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,100,000 1,100,000

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Code No: T-03-03300-0690-066251 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : The preparation of Urban Sector Development Reform Project 2 (USDRP-2) : 24 months : National wide : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification In order to improve basic urban services through urban governance reform, institutional development and infrastructure investment in the participating Urban Local Government (ULG) then in the year 2005 GOI has launched a program namely Urban Sector Development Program (USDRP) 1 for 13 cities and regencies. Currently the GOI has been initiating the second stage of USDRP which its goals are in line with the first one, but also to contribute to making service delivery responsive to the needs of the citizens, including sizable urban poor. The implementation of USDRP 1 at the central level is managed by the Central Project Management Unit (CPMU), assisted by Project Management Units (PMUs) and Project Implementing Units (PIUs) at participating Local Governments. To assist the CPMU with the preparation of institutional development component for the USDRP 2, the Directorate Generals of Human Settlements, Ministry of Public Works would carry out the technical assistance activity supported by a selected consultant. 7. Priority Infrastructures 8. Objectives a. To assist participating ULGs with undertaking reforms in the good areas for good governance, namely accountability, transparency, public participation, strategic planning, public procurement and financial management; b. To assist CPMU with the preparation of USDRP-2 loans documents related to the institutional development component; c. To assist CPMU and CPMU Advisor with the implementation of Urban Institutional Development Program (UIDP) activities for the benefit of participants in USDRP-2.

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Code No: T-03-03300-0690-066251 9. Activities a. To assist participating LGs with undertaking reforms in the core ares of the good governance: 1) Prepare a base line of the existing situation; 2) Develop and agree on targets to achieve the agreed reform; 3) Develop and agree on a set time-bound performance indicators to measure progress towards the agreed targets. b. To assist CPMU and the CPMU Advisor with the implementation of UIDP: 1) Identify detailed demand for UIDP services in the target group; 2) Assist the target group with the preparation of proposals for activities to be financed through he UIDP; 3) Assist UIDP with delivery of advisory services the target group. c. To assist Government of Indonesia with the preparation of USDRP-2 loan documents: 1) The preparation of cost and financing plans for the institutional components of USDP-2; 2) The identification of technical assistance required for USDRP-2 implementation (including the preparation of draft terms of References) where related to the institutional development; 3) Providing inputs for the preparation of a Project Implementation Plan (PIP).

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,000,000 0 4,000,000 400,000 0 0 0 400,000 4,400,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,400,000 4,400,000

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Code No: T-01-03300-0690-066252 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Technical Assistance for a Secretariate for a National Urban Forum for Indonesia : 24 months : DKI Jakarta : Ministry of Public Works : Directorate General for Human Settlements, Ministry of Public Works

6. Background and Justification Urban areas in Indonesia have been facing challenge in continuous decline in environment condition and urban quality of life. This has been due to increasing urban poverty and unemployment, and lack of urban economic development and investment in urban infrastructures and services, in the aftermath of financial and economic crisis striking Indonesia since 1998. Many urban development approaches have been tried like Kampung Improvement Program (KIP), Integrated Urban Infrastructure Development Program (IUIDP), Urban Poverty Projects (UPP), City Development Strategy (CDS), and Urban Sector Development Sector Program (USDRP). At this point of time, the need for establish a more effective institution like Urban Development Institute is felt to cater to the need of the more decentralized and democratic environment for urban development, to keep up with the urban development issues at the International and global level and related government commitment, to stimulate more effective local development and mobilization of resource, and to catch up deficiency by creating more conductive and effective environment for urban infrastructure and services investment. A national urban forum is needed backed by a strong secretariat, capable of providing better insight by thorough policy analysis on urban development issue, serving a vocal point of a national and regional linked with international networks, and creating forums for local governments to be an active partner in a national agenda of urban governance reform. 7. Priorities a. Poverty and Disparity Alleviation b. Infrastructure 8. Objectives To assist the government in creating the most effective institutional framework, capable of creating the most appropriate responses to up to date urban development issues, based on solid and strong network of cooperation and information exchange, supported by a sound base and in depth professional analysis and judgement, and involvement of a well defined urban stakeholders at national and local levels. T- 229

Code No: T-01-03300-0690-066252 9. Activities a. To serve as a national knowledge centre for urban development, and a vocal point of a national urban institutional network of cooperation and information exchange agenda; b. to undertake surveilance of urban development issues to secure and up to date list of issues worth and feasible immediate attention and response; c. to provide policy and strategy input to the government through DG Cipta Karya. d. to produce periodically urban development update report for use by all urban stakeholders and by the public; e. to establish the network of cooperation and information exchange with local government (through the signing of MoU), with other urban evelopment stakeholders at central government institution, with international urban development related institution, with the private and bussines partner related to urban development, and establhish Urban Management Information System to support the cooperation; f. to maintain a consistent respose to intrernational urban development issues through the global network of Habitated Urban Sustainable Development affairs and activities; g. to support the attainment of objectives pursued by the Urban Institutional Development Program (UIDP) promoted and implemented under the USDRP agenda; and h. to provide support to the establishment of mechanism coordination of urban development of all urban stakeholders at national level and local urban forums whenever is needed. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 230 Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,080,000 0 1,080,000 150,000 0 0 0 150,000 1,230,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,230,000 1,230,000

Directorate General for Spatial Planning Code No: T-03-03300-0505-066253 1. Project Title 2. 3. 4. 5. : Participatory Study on Formulation of Spatial Planning Gerbangkertosusila Zone Duration : 24 months Location : East Java Executing Agency : Ministry of Public Works Implementing Agencies : a. Directorate General for Spatial Planning, Ministry of Public Works b. Local Government of East Java

6. Background and Justification The Gerbangkertosusila zone which covers, and is an acronym of seven regencies and municipalities, namely the regencies of Gresik, Bangkalan, Mojokerto, municipalities of Mojokerto, and Surabaya, and the regencies of Sidoarjo, and Lamongan is one of the promising zones as stated in the PP (Government Regulation) No. 47/1997 about National Spatial Planning. As an excellent zone, the area of Gerbangkertosusila has various advantages, which reflects in its status as one of the national growth centers which enjoys a very rapid growth, especially in East Java Province and in the Eastern Part of Indonesia in general. The Gerbangkertosusila zone which covers Surabaya City and other region and cities, is a Special Zone bearing an important role in economic activities nationally and internationally today and in the future. The Special Zone is a zone which has a strategic value and where the priority is given to its spatial planning. In parallel to the rapid growth of the Gerbangkertosusila zone, interregional problems will emerge, which are generally related to: a. Difficulty of interregional coordination b. Authority of governmental administration is limited to the administration area c. Planning is not yet integrated and still confined to each territory. d. Financial position of each region is different from region to region. e. There is still no integrated information for planning implementation and controlling for regional development. f. Limited Human Resources/professionalism belonging to the region. Furthermore, by the rapid development of activities in the Gerbangkertosusila zone, and with the construction of Java-Madura Bridge, it is necessary to re-formulate the Spatial Planning of Gerbangkertosusila Zone which is able to play a role of national development guidance and to recommend various spatial planning policy, strategy, and programs in their area.

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Code No: T-03-03300-0505-066253 7. Priority Infrastructure 8. Objectives a. To prepare comprehensive spatial plan for Gerbangketosusila zone targeting the year of 2025. b. To prepare detailed spatial plan and Zoning Regulation for selected areas and prefeasibility study for major programs/projects. c. To strengthen government staffs capacity in implementing programs/projects. d. To prepare an institutional arrangement to implement the comprehensive spatial plan. 9. Activities a. b. c. d. e. f. g. Evaluation of development constraints and potentials of the area. Policy and Strategy to develop the Gerbangkertosusila zone. Regional Spatial Plan of Gerbangkertosusila zone. Preparation of detailed spatial plan in selected areas. Preparation of pre-feasibility study for major programs/projects. Conducting training of governments staffs in conducting spatial planning. Preparing institutions for area development.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 232 : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,700,000 0 1,700,000 255,000 0 0 0 255,000 1,955,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,955,000 1,955,000

Code No: T-03-03300-0505-066254 1. Project Title 2. 3. 4. 5. : Comprehensive Development Plan for Integrated Economic Development Zones (IEDZ) Duration : 24 months Location : Sasamba, East Kalimantan Executing Agency : Ministry of Public Works Implementing Agencies : a. Directorate General for Spatial Planning, Ministry of Public Works b. Local Government of East Kalimantan

6. Background and Justification a. Since the level of development of in the eastern-part of Indonesia is still left behind compared to the western-part, the government of Indonesia has endeavored to reduce the development gap between them through the promotion of strategic development areas in the eastern part of Indonesia. The commitment of the government to tackle that disparities has been shown through the enactment of presidential decree No. 150 year 2000 stating that the Integrated Economic Development Zones so called Kawasan Pengembangan Ekonomi Terpadu (KAPET) or Integrated Economic Development Zones (IEDZ), covers 13 (thirteen) IEDZ, one of which is the Sasamba IEDZ. b. Until now, The Government of Indonesia has made an effort including preparing some incentives and investment policy for IEDZ, preparing procedure of investment permit in the IEDZ, promoting many IEDZs investment opportunities, preparing sufficient infrastructure required by the IEDZ, developing growth center based on natural resources potentials. Nevertheless, the above Government efforts are not sufficient to attract and increase the interest of domestic and foreign business communities in involving the economic development of the IEDZ. It requires a comprehensive development plan for the Integrated Economic Development Plan (IEDZ). 7. Priority Infrastructure 8. Objectives a. To formulate master plan on comprehensive development plan for the IEDZs. b. To prepare the formation of scheme for spatial plan and implementation plan in a model district on the basis of intention of stakeholder. c. To formulate short-term/medium/long-term program and action in the IEDZs. d. To prepare regional development (area, sector, and commodity development) manual and guidelines. e. To formulate fiscal and non fiscal Incentives. T- 233

Code No: T-03-03300-0505-066254 9. Activities a. b. c. d. e. f. Evaluation of development constraint and potential of the area. Analyzing the fiscal and non fiscal incentives. Identifying and analyzing the investor needs. Preparing policy and strategy to develop the area. Formulating program and action plan to develop the area. Formulating the sector and commodity strategic marketing plan.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 225,000 0 0 0 225,000 1,725,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,725,000 1,725,000

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Code No: T-03-03300-0505-066255 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Strengthening Spatial Utilization Monitoring System 24 months National wide Ministry of Public Works Directorate General for Spatial Planning, Ministry of Public Works

6. Background and Justification The spatial planning in Indonesia has shifted its main focus from the preparation of spatial plan to the monitoring of the spatial utilization. This condition is driven from the evidence that the spatial planning problems still occurs due to the lack of the monitoring of spatial utilization of which it has resulted in difficulties to conduct controlling of spatial utilization. Realizing this problem, it is important to develop a system to monitor the national spatial utilization. The lack of the monitoring process of spatial utilization has been shown by the facts that there are still spatial utilizations that contradict with what have been suggested in spatial plan and conflicts among sectors and regions in spatial utilization. Those circumstances takes place since there is no spatial utilization monitoring system that encompasses networks among institution responsible in monitoring of spatial utilization, database of existing land use map including its quantitative and qualitative data, guidelines and regulation of spatial utilization, and socialization of existing regulation. Considering this condition, it is important to establish a monitoring system of spatial utilization, therefore, environmental condition can be maintained from degradation and sustainable development can be performed. 7. Priority Infrastructure 8. Objectives The availability of effective on spatial utilization, which in line with National Spatial Planning and to be harmonized with community aspiration (bottom up aspiration). 9. Activities a. b. c. d. To set up an application system for monitoring of national spatial utilization. To establish map database for monitoring of spatial utilization. To develop guidelines for monitoring of spatial utilization. To strengthen the capability of local staffs for monitoring of spatial utilization. T- 235

Code No: T-03-03300-0505-066255 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 225,000 0 0 0 225,000 1,725,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,725,000 1,725,000

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Code No: T-03-03300-0505-066256 1. Project Title 2. 3. 4. 5. : Integrated Regional Master Plan for the Medan Metropolitan Area Duration : 24 months Location : North Sumatera Executing Agency : Ministry of Public Works Implementing Agencies : a. Directorate General for Spatial Planning, Ministry of Public Works b. Provincial Government of North Sumatera

6. Background and Justification Since the Medan Metropolitan Area has a location advantage due to the closeness to the regional growth centers such as Singapore and Malaysia, it estimated that the area, directly and indirectly, will receive the impact of the rapid development of those growth centers. In internal area, it is estimated that the decision to construct a new airport at Kuala Namu northeast of Medan City will create problems due to the environmental impacts and limited space for expansion at the existing Medan Airport. It is necessary to carry out the following studies in Medan metropolitan area to encounter rapid development in the area including: a. Preparation of related infrastructure. b. Industrial area development at the airport outskirts. c. Land use plan for Medan Metropolitan Area. It is also necessary to consider the availability of the high technology industry in Binjai City and Belawan International Port that can convert the land use in the area. In addition, the following problems may occur by an impact of new airport including: a. Rapid sprawl along the Outer Ring Road. b. Disappearance of a traditional building by redevelopment of the downtown area. Therefore, it is necessary to prepare Study on Integrated Regional Master Plan for Medan Metropolitan Area. 7. Priority Infrastructure 8. Objectives a. b. c. d. To preparing comprehensive regional spatial plan of the Medan Metropolitan Area. To preparing institution that will conduct spatial planning in the area. To increasing the capacity of government staffs in conducting spatial planning. To preparing guideline to manage rapid development in the Metropolitan area T- 237

Code No: T-03-03300-0505-066256 9. Activities a. b. c. d. e. f. Evaluation of development constraint and potential of the area. Preparing the policy and strategy to develop the area. Preparing the regional plan of Medan Metropolitan Area. Preparing the institution that will conduct spatial planning in the area. Formulating the program and action plan to develop the area. Conducting training of governments staff in conducting spatial planning.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,700,000 0 1,700,000 255,000 0 0 0 255,000 1,955,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,955,000 1,955,000

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Code No: T-03-03300-0505-066257 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Formulation of Strategy and Implementation Control of Spatial Planning Utilization in Jabodetabek : 24 months : DKI Jakarta, Bogor, Depok, Tangerang, and Bekasi : Ministry of Public Works : Directorate General for Spatial Planning, Ministry of Public Works

6. Background and Justification Metropolitan Jabodetabek (Jakarta-Bogor-Depok-Tangerang-Bekas) is the fastest economic growth area in Indonesia, even in Asia. This area has various advantages, in term of location, urban facilities, and human resource and so on. This rapid growth has accelerated spatial utilization changes especially in the fringe areas, where development of housing area, commercial area, business centers, industrial are and recreational area are massively continuing. This intensive spatial utilization growth has increased land conversion from conservation area into built up area. Unfortunately, this rapid growth does not balance with appropriate control system, which in turn creates sprawl development, imbalance between conservation areas and built up areas, un-integrated infrastructures and utilities network system. Hence green areas and open spaces have decreased significantly, which in turn created various environmental problems, such as floods, droughts, and an increase in sea water intrusion. If these situations still carries on, spatial utilization in metropolitan will become inefficient and ineffective, which would worsen the quality of life, increase cost of living and cost of production and eventually will decrease the attractiveness of Jabodetabek Metropolitan to compete with other metropolitan areas in Asia. 7. Priority Infrastructure 8. Objectives a. To establish spatial utilization control system which is more efficient and effective. b. To develop integrated spatial information system to support the developed control system. c. To prepare efficient and effective management system for the critical area (fringe area) supported by committed legal and institutional framework.

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Code No: T-03-03300-0505-066257 9. Activities a. Developing spatial utilization control system for Jabodetabek Metropolitan. 1) Undertaking evaluation of the existing spatian utilization control system. 2) Identifying the root cause of deviation in spatial planning and utilization. 3) Developing concept and strategy for controlling the spatial utilization based on Zoning in Metropolitan Regulation System of Jabodetabek which is more efficient and more effective. 4) Developing supporting spatial information system. 5) Preparing technical guidance for controlling the spatial utilization b. Preparing investment plan and program for controlling the spatial utilization. 1) Preparing zoning plan for the Jabodetabek Metropolitan. 2) Developing the investment plan for public infrastructure and facilities. c. Institutional setting and capacity building. 1) Establishing coordination board and forum for the stakeholder. 2) Developing Standard Operation Procedure (SOP) of spatial utilization monitoring and control among tha stakeholder. 3) Carrying out training program to improve capacity in controlling the Jabodetabek Metropolitan area.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,050,000 0 1,050,000 156,000 0 0 0 156,000 1,206,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,206,000 1,206,000

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Code No: T-03-03300-0505-066258 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Capacity Bulding in Spatial Planning 48 months National wide Ministry of Public Works Directorate General for Spatial Planning, Ministry of Public Works

6. Background and Justification Spatial planning is a concept or idea that covers all activities and its characteristics that are related to spatial aspects or location in the area/region. This concept was intended to conserve the environment, make spatial allotment be in harmony, effective, and kept from conflict of interest among stakeholders. The presence of the Spatial Planning Law No. 24/1992 concerning spatial planning made us realize of the importance of spatial planning practices, which consist of planning, utilization/implementation and spatial utilization control. In addition law No. 32 2004, local government has stipulated that spatial planning is not solely the Central Governments responsibility. Municipalities have full responsibilities in spatial planning and are included in the spatial plan, implementation and monitoring. The Central Government has responsibilities in supervising, assistance and monitoring. To implement the spatial planning properly, the need of good institutions and resources that had the ability and knowledge about the spatial planning is necessary. Recently, the conditions show there is lack of human resource to handle spatial planning both at the local and central government levels. The main issue related to capacity of government staff in spatial planning is the perception of the new paradigm of spatial planning among government staff in spatial planning both in local and central level, which has not been equivalent yet. This condition takes place since human resource in institution handling spatial planning come from different expertise and background of study. For example, the employees who work at the Directorate of Spatial Planning at the Ministry of Public Works came from different academic background and need to improve their capability to handle spatial planning problems. The spatial planning is new for them. These kinds of situation can be seen in many regions in Indonesia. 7. Priority Infrastructure 8. Objectives To achieve more effective spatial planning implementation as tool for integrated development with qualified human resources T- 241

Code No: T-03-03300-0505-066258 9. Activities a. Preparation stage 1) Form an expert spatial planning team from different academic background at the central government. 2) Determine the pilot project area in province, regency and municipality level as a sample to formulate/review the regency and municipality spatial plan/detailed plan/technical plan. 3) Collect all necessity data b. Implementation stage 1) On the job training in formulating/reviewing the province/regency/ municipality spatial plan. 2) Formulate teaching materials for priovince, regency and municipality spatial plan dissemination/training. 3) Formulate the maual and guidelines the regency and municipality spatial plan/detailed plan/technical plan. c. Training in provinces, regencies, and municipalities. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 150,000 0 0 0 150,000 1,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,150,000 1,150,000

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Code No: T-03-03300-0505-066259 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Formulation of Spatial Plan of Palembang and Surrounding Areas : 24 months : Palembang (South Sumatera) : Ministry of Public Works : Directorate of Spatial Planning, Ministry of Public Works

6. Background and Justification Local autonomy and fiscal balance laws made the local government particularly the seven most populous cities including Palembang City suddenly incapable of effectively managing their increased responsibilities particularly in good governance and delivery of basic service to the increasing population. With population of 1,4 million and economic growth rate of 2,4% per year, Palembang is rich on coal mining, agricultural plantation, oil refining and fertilizer production. This study try to complement it with social infrastructure to address its rapid growing population. Likewise, much needed transport and social infrastructure should be provided to support the sustained development in the areas of industry, agriculture, fishery, mining, forestry and energy under the Regional of Socio-Economic Development of Southern Sumatra. Due to the continuing degradation of the Musi river-front and uncontrolled activities, there is a need for development of the areas including flood control effort to mitigate flood damages in many rivers. More importantly is a need to upgrade the Palembang Harbor into an Ocean Port with increased capacity for container handling, considering that it is the port of origin of Palembang export product particularly oil export to Japan. Port and river-front development would appropriately complement to the assisted improvement of the old Mahmud Baharudin II airport in Palembang City to meet International Standards. As a major Indonesian gateway city to the other ASEAN member countries with shoreline abutting the busiest international shipping corridor in the world, the city needs a Sustainable Integrated Urban Development Program that will identify investment priorities for Regional Growth Pole Cities. 7. Priority Infrastructure

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Code No: T-03-03300-0505-066259 8. Objectives a. Preparing related infrastructures such as transportation infrastructures, drainage, energy and communication infrastructures, and others. b. Preparing guideline to manage rapid development in the metropolitan area. c. Developing institution to manage the area. 9. Activities a. b. c. d. Evaluation of development constraint and potential of the area. Preparing policy and strategy to develop the area. Formulating program and action plan to develop the area. formulating the sector and community strategic plan including: 1) Analyzing the fiscal and non fiscal insentives. 2) Identifying and analyzing the investors needs.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 150,000 0 0 0 150,000 1,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,150,000 1,150,000

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Code No: T-03-03300-0505-066260 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Development of Special Economic Zone (SEZ) of Northern Sumatera : 24 months : Northern Sumatera : Ministry of Public Works : a. Directorate General for Spatial Planning, Ministry of Public Works b. Government of NAD c. Government of North Sumatera

6. Background and Justification The Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) is a sub-regional economic cooperation among Indonesia, Malaysia and Thailand established in 1993 during the Ministerial meeting at Langkawi, Malaysia. The IMT-GT aims at encouraging the role of the private sector in accelerating economic growth through investment, export activities and reducing production and distribution cost. Developments of IMT-GT requires an integrated and comprehensive infrastructure and policies, such as power, road, telecommunication, water supply, etc. as well as reduce in trade and non-trade barrier, and other various investment incentives. Master plan of IMT-GT indicated more than hundred projects with amount of approximately US$ 15 billion from 10 years period. One of high priority projects is development of Special Economic Zone (SZE) in Northern Sumatera. From the Indonesia side, this project is expected to enhance competitiveness of the area to attract foreign investment, which in turn could accelerate economic growth and provide more employment opportunity for the surrounding area as well. In addition, post to the tsunami disaster, this project could provide significant impact in recovering economic situation in the area. SEZ in Northern Sumatra will be developed as joint development zone along Medan Lhokseumawe Belawan Banda Aceh corridor. 7. Priority Infrastructure 8. Objectives a. To accelerate investment flows among three sub-region of Indonesia-MalaysiaThailand Growth Triangle (MIT-GT), through development of supporting infrastructure and streamlining relevant policies and procedures. b. To establish economic and trade cooperation among the sub-regions by reducing trade and non trade barrier in term of legal, regulatory and institutional aspects.

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Code No: T-03-03300-0505-066260 c. To develop joint development zone at Medan Belawan Lhokseumawe - Banda Aceh Corridor in order to attract more foreign investment in the trade and industrial sector and provide more employment opportunity. 9. Activities a. Phase I : Development of border zone of Belawan and Medan Development will be clustered around two nodes, Belawan and Medan. With emphasize on offsetting existing infrastructure and facilities constraint. 1) Pre-investment and design studies: preparation of area development planand economic development strategy; preparation of physical infrastructure and facilities development plan and comprehensive land use master plan; preparation of supporting rules and regulation, including zone regulation; and preparation of pre-feasibility and feasibility studies for commercial free zone at Belawan port and border industrial estate at Medan. 2) Initial construction and development of commercial free zone at Belawan and extension of Medan industrial estate; land acquisition; and development of supporting external and internal infrastructures and facilitites. b. Phase II : Development of Medan Belawan corridor The development will be extended to encompass the area between the two nodes (Medan and Belawan), on which planning and development efforts would be concentrated. 1) Pre-investment and design studies: preparation of area development planand economic development strategy; preparation of physical infrastructure and facilities development plan and comprehensive land use master plan; preparation of supporting rules and regulation, including zone regulation; and preparation of pre-feasibility and feasibility studies for border industrial estate. 2) Initial construction and development of 300 Ha industrial estate/bounded zone mear Belawan; land acquisition; and development of supporting external and internal infrastructures as well as standard factory bulding. c. Phase III : Development of Extension of the corridor to Banda Aceh and Lhokseumawe The development will be clustered aorund two additional nodes, namely Banda Aceh and Lhokseumawe. 1) Pre-investment and design studies: preparation of area development planand economic development strategy; preparation of physical infrastructure and facilities development plan and comprehensive land use master plan; preparation of supporting rules and regulation, including zone regulation; and preparation of pre-feasibility and feasibility studies for deregulated argo industrial area.

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Code No: T-03-03300-0505-066260 2) Initial construction and development of 500 Ha land parcel for deregulated argo industrial areas; land acquisition; and development of supporting external and internal infrastructures and facilitites. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 225,000 0 0 0 225,000 1,725,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,725,000 1,725,000

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Code No: T-03-03300-0505-066261 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Urban and Regional Planning Expert : 24 months : National wide : Ministry of Public Works : Directorate General for Spatial Planning, Ministry of Public Works

6. Background and Justification The stipulation of law no. 32/2004 about regional autonomy has influenced the development practices in Indonesia including the spatial planning. The core regulation of this law is the shift of development authority from the central government to the local government particularly to cities and regencies (so called kabupaten). Most of the development roles and authority are conducted by local government and central government roles that are mainly related to the national concern such as national road development, preserving national forest, preparing guidelines for local government, and other national concerns. The other crucial issues that greatly influence the spatial planning practice are globalization and urbanization. Since there is rapid development in information and communication technology, these has accelerated the movement of man, goods, and capitals. Many transnational companies and capitals move to Indonesia and most of them tend to locate in strategic areas that have good access and services which are urban areas. As a consequence, it has triggered a massive urbanization. The rapid urbanization accompanied with the lack of urban management has caused urban problems such as uncontrolled development i.e. urban sprawl. This has produced some drawbacks in urban areas such as environmental degradation, low level of service (road, solid waste, drainage, drinking water, etc.). this condition also worsened by the lack of urban management such as lack of capacity of local government in conducting city and regional planning, lack of guideline and tools to manage management, and others. In this relation, expert assistance from the county that has experience in spatial planning is also important in order to bring new perspective and ideas on how to prepare and implement the spatial planning system. This expert is also required to give inter-country comparative spatial planning system that can be utilized to enrich the content of the new spatial planning law. Concerning this, the government of Indonesia requests the donors to conduct technical cooperation through expert assistance. In addition, expert assistance can be also utilized in nurturing the expertise exchange to enhance the capacity of Indonesia government official. 7. Priority Infrastructure T - 248

Code No: T-03-03300-0505-066261 8. Objectives a. To provide advice in spatial planning system. b. To conducting inter-country comparative study on spatial planning system as an input to the preparation of spatial planning law draft. c. To increasing the capacity of Indonesia government staffs through dissemination and training on spatial planning system. 9. Activities a. Evaluating the spatialplanning system in Indonesia. b. Conducting inter-comparative study on spatial planning system. c. Conducting dissemination and training on spatial planning system. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 225,000 0 0 0 225,000 1,725,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,725,000 1,725,000

Counterpart Funding - Central Government : US$ - Regional Government : US$ - State-Owned Enterprise : US$ - Others : US$ Sub Total : US$ TOTAL : US$

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Directorate General for Water Resources Code No: T-03-03300-0404-066273 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Integrated Water Resources Management in Jabodetabek and Its Surrounding Area : 22 months : Jabotabek (DKI Jakarta, West Java, and Banten) : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification The capacities of water supply and flood control in this area have improved and have remained at the minimum level for the past decade. The progress of the improvement of related-water capacity is far behind of the past economic growth of the area and this slow progress is now one of the most significant issues which prevent the area from developing as expected by the GOI. Since the required investment according to the existing plans may not be realized so long as this situation goes on. The breakthrough or road map toward the realization of related plans may be as follows: a. To clarify their problems, constrain, impacts, and roles in the existing condition of water resources sector b. To review the existing so as to meet the current phase or situation against institutional and budgetary system, and c. To rearrange the planning scale of the structural components and the balance between structural and non-structural measures to meet the current and future needs and conditions. The update of the existing water resources management consisting of flood and water use including watershed conservation is urgently needed so as to adjust and match the current administrative and budgetary systems and the needs from the stakeholders, which may have been drastically changed during this decade, and to promote the realization of the plans for the improvement of the living environment. To cope with such situation, the following actions are urgently needed in the field of water resources management. 7. Priority Infrastructure 8. Objectives a. To formulate a framework plan as framework plan (POLA) for integrated water resources management in 3 territories of river basin management authorities (PIPWS) that are the Citarum, the Ciliwung Cisadane and Ciujung-Ciliman. b. To conduct a readjustment of existing flood control plan under a new concept of flood management for the area of Metropolitan Jakarta (DKI Jakarta) within the scheme of the above formulated framework plan. c. To formulate a master plan of use management in 3 PIPWS of Citarum-CiliwungCiujung and existing studies and plan within the scheme of the above formulated framework plan. d. To select priority projects for urgent implementation.

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Code No: T-03-03300-0404-066273 e. To conduct transfer of knowledge to counterpart personnel and related local governments and communities personnel. f. To formulate a framework plan as POLA for integrated water resources management in3 territories of river basin management authorities (PIPWS) those are Citarum, The Ciliwung-Cisadane, and Ciujung-Ciliman. g. To formulate a master plan of integrated water resources management in 3 PIPWS h. To conduct transfer of knowledge to counterpart personnel and related local government and communities personnel. 9. Activities a. Phase I to formulated of a POLA of water resources management 1) Review of existing documents, study on the flood management, study on water use management, study on the conservation of environment 2) Identifying problem and constraint for integrated water resources management framework 3) Study on institutional arrangement 4) Formulation of scenario/road map to POLA of integrated water resources management 5) Public consultation meeting and preparation of document for legalization b. Phase II to conduct preparation of master plan of integrated water resources management 1) Readjustment of existing flood control plan 2) Formulation of flood management plan 3) Study on water allocation 4) Formulation of water use management master plan 5) Public consultation meeting and preparation of documents for legalization 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 750,000 0 0 0 750,000 5,750,000 T- 251 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,750,000 5,750,000

Code No: T-03-03300-0404-066274 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Comprehensive River Water Management of The Batang Hari River Basin in Jambi Province : 24 months : Jambi : Ministry of Public Works : Directorate General for Water Resources Development, Ministry of Public Works

6. Background and Justification The Batanghari River has a catchments area of 49,100 km2, consisting of hilly area (37%) and low land area (63%). The river basin covers most of Jambi Province and a part of West Sumatra Province. In the river basin, the following water resources problems have arisen. a. The lowland areas along the Batanghari River and its tributaries suffer from annual flooding including Jambi City, the capital of Jambi Province. Public infrastructure, such as road, bridges, schools, a large market of Jambi City and private asset and farmland are frequently inundated during the rainy season b. Water retention ability in the upper basin is declining due to the deforestation c. Land erosion, land slide and debris flow occur in the upper basin, and sediment deposition in the downstream riverbed decreases flow capacity and they have a negative impact on the inland navigation and water utilization. d. Bank erosion damages residential houses, roads and cultivated land along the mainstream of the Batanghari River, particularly in and around Jambi City. 7. Priority Infrastructure 8. Objectives a. To mitigate the flood in Jambi City by both structural and non-structural measures (hazard map public awareness campaigns for conservation, land use restriction plan, flood forecasting and warning system, etc.) and lowland are of the basin by nonstructural measures. b. To improve the tributaries and drainage system in Jambi City, such as the Asam River c. To control sediment in the upstream area and at the mouth of the Batanghari River.

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Code No: T-03-03300-0404-066274 9. Activities a. To formulate a basic framework of integrated water resources management of the basin including upper watershed conservation and potential assessment of water availability. b. To formulate a master plan for flood (including sediment-related disaster) management inclusive of structural and non-structural measures targeting the year of 2025 (medium term plan) c. To conduct a feasibility study for priority project(s) selected from proposed projects in the master plan of flood management including Jambi City Flood Control Project. d. To prepare implementation program of the priority projects. e. To conduct training programs including capacity building to the local government officials. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,200,000 0 3,200,000 480,000 0 0 0 480,000 3,680,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,680,000 3,680,000

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Code No: T-03-03300-0404-066275 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Integrated Water Resources Management in Bali Province 36 months Bali Ministry of Public Works Local Government of Bali

6. Background and Justification The island of Bali is considered to be one river basin and one groundwater basin, to which the principle of one planning and one management should be applied. The ongoing master plan study has proposed a new institutional framework to realize integrated management consisting of i) consolidation of water resources management functions at the provincial level, ii) introduction of at least two Water Resource Management Unit (Balai Pengelolaan Sumber Daya Air) to be responsible for technical implementation, and iii) establishment of coordination mechanisms. The technical and managerial capacity of Balai PSDAs will be the key to the successful operation of the new institutional arrangement. Hence, capacity development of Balai PSDAs needs support mobilizing both internal and external knowledge and resources. In addition, two areas require special attention and solutions involving other stakeholders: water allocation and water pollution control. Also, as the presence of thriving communities and their active involvement in water resources planning and management are integral elements of comprehensive basin management, subaks, that are facing increasing risks of disintegration and loss of income opportunities, need support with the aim of creating conditions for win-win solutions. 7. Priority Infrastructure 8. Objectives To realize integrated water resources management in Bali Province through enhanced capacity of the relevant provincial government offices, subaks and coordination mechanisms. 9. Activities a. Capacity Building for Local Government and Balai PSDA 1) Monitoring and management on daily discharge or water volume for water resources;

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Code No: T-03-03300-0404-066275 2) Monitoring and management on water quality for water resources; 3) Operation and management system on river and river facilities such as dams, and weirs, etc; 4) Flood control system or mitigation system; 5) Establishment on water resources development plan and management plan; 6) Legal systems on finance and human resources; 7) Methodologies and strategies on communication systems. b. Water allocation program in the main river basin: 1) Observation and monitoring of discharge for irrigation by Subak; 2) Coordination on Water allocation by Provincial Water Resources Coordination Council (PWRCC) c. Enhancement for water quality management: 1) Introduction of river patrolling and observing system; 2) Regulation on water quality; 3) Social awareness on river environment; 4) Flood control system or mitigation system. d. Capacity building for Subaks: 1) Negotiation with stakeholders of non-subaks 2) Improvement of cropping patterns; 3) Introduction of new business opportunities. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,375,000 0 4,375,000 660,000 0 0 0 660,000 5,035,000 T- 255 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,035,000 5,035,000

Code No: T-03-03300-0404-066276 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Feasibility Study and Detail Design of Tukad Ayung Multi Purpose Dam : 12 months : Bali : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification Tukad Ayung has 21,841 ha of catchments area. The topography and condition of this area makes it possible to develop a dam for supply 3,600 liter/second of raw water, 9,542 ha irrigation area, tourism, and electricity. 7. Priority Infrastructure 8. Objectives Supply of raw water, irrigation, electricity, and eco-tourism 9. Activities : Feasibility Study and Detailed Design 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 130,000 0 0 0 130,000 1,130,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,130,000 1,130,000

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Code No: T-03-03300-0504-066277 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Preparation of a Databank for Coastal Protection and Management : 24 months : DKI Jakarta : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification The Indonesian archipelago contains more than 15,000 islands with a total of thousands of coastlines. Due to uncontrolled utilization of large parts of these coastal zones, the stability of these coastal zones currently at stake. As a sign of commitment to addressing this issue the new Indonesian Government has the task of the management and protection of these coastlines. 7. Priority Infrastructure 8. Objectives To support decision making at central and regional/sector level regarding, in the following priorities : a. Conservation and rehabilitation of precious wetland eco-systems and lowland forest in the coastal zones, b. Efficient agricultural production in selected existing lowland small-holder scheme, c. Sustainable and sound protection of urban areas. 9. Activities The databank for coastal protection and management will involve the following steps : a. Resource inventories Previous project : the inventory of the results and conclusions or the 4 projects as described above, and others b. Field checks For all critical areas field visits will be made to update the information in these reports.

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Code No: T-03-03300-0504-066277 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 450,000 0 0 0 450,000 3,450,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,450,000 3,450,000

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Code No: T-03-03300-0505-066278 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Preparation of National Lowland Management Strategy 48 months National wide Ministry of Public Works Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification The Indonesian archipelago has around 34 million hectares of lowlands, which are mainly located in the coastal and near coastal areas on the islands of Sumatra, Kalimantan, and Papua. Some 3,9 million ha of lowland has been reclaimed for small holder agriculture by government sponsored and spontaneous intervention. The agricultural program was only partially successful, as full development of potentials has not been achieved. Failures were due to poor planning, lack of data and a centralized approach. Progress was made with the second stage development in existing lowland schemes, showing promoting result with agricultural production and improved socio economic condition. Large tracts of lowland were converted into tree crop estate and fisheries. Remaining lowland forest areas are under threat by unsustainable logging practices, bushfires, and uncontrolled developments. 7. Priority Infrastructure 8. Objectives To support decision-making at central and regional/sector level regarding, in order of priority : a. Conservation and rehabilitation of precious wetland ecosystems and lowland forests in the coastal zones, b. Efficient agricultural production in selected existing lowland small-holder schemes, c. Sustainable and sound forestry practices and lowland forest exploitation d. Attraction and participation of private sector e. Future expansion of agriculture and forestry 9. Activities a. Development of policies, legislation, guidelines, and database 1) Regulation of lowland development in balance with requirements for nature conservation 2) Guidelines on lowland management standard and extended, supported by pilots and research 3) Set up and management of database on lowland experience, natural resource inventories, monitoring

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Code No: T-03-03300-0505-066278 b. Resource inventories 1) Existing schemes : the inventory of 3,7 million ha of existing small-holder lowland schemes, with selection of potential areas for high priority second stage development and the delineation of low potential areas for witch alternative development is recommended 2) Natural habitat : upgrading and expansion of the 1984 Nation wide Inventory of Coastal and Near Coastal Swamp Land, covering about 32 million hectare of lowland forest lands, identifying priority areas for nature conservation and rehabilitation and future potentials for forestry, agriculture and private sector investment c. National and regional planning 1) Prepare short and long term national policies and strategies for sustainable management and balanced development of lowland and prioritization of programs, in the framework of Integrated Water Resources Management (IWRM) 2) Provide inputs for preparation of regional lowland management and sector development plans d. Capacity building 1) Strengthening of central and decentralized planning and line agencies and stakeholder organizations 2) Support to decentralized natural resource management process 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 34,000,000 0 34,000,000 5,100,000 0 0 0 5,100,000 39,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 39,100,000 39,100,000

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Code No: T-03-03300-0404-066279 1. Project Title 2. Duration 3. Location 4. Executing Agency 5. Implementing Agency : Flood Control/Drainage Improvement for Pekanbaru City and Water Resources Development in Riau Province : 12 months : Siak River, Riau : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification Pekanbaru as the capital city of Riau Province is each year flooded and inundated due to heavy rains, spring tide and the not yet good drainage system of Pekanbaru city. The annual inundation area is about 1.860 ha consisting of about 860 ha of urban areas and about 1.000 ha of rural areas. Pekanbaru City is currently expanding rapidly and new settlements are developing. But flooding and inundation problem not yet fully resolved. To support the acceleration of economic development and public infrastructure of Pekanbaru, so the implementation of the Pekanbaru Flood Control is required. To reach the optimum development result of Pekanbaru flood control, the integrated plan of the City Drainage and Siak Flood Control in the Pekanbaru Flood Control Project is required. 7. Priority Infrastructure 8. Objectives The objective of The Pekanbaru Flood Control Project are to prevent and mitigate frequent flood damage in the Pekanbaru City and to increase the development potential for intensive commercial activities and industrial production of the area. 9. Activities The flood control plan of Pekanbaru City (Improvement of Siak River) consists of overall plan and designs. At the first stage, construction of the urgent river improvement plan is proposed comprised the following : a. Construction of the facility of drainage pumping station in 9 locations b. Capacity building for management of operation and maintenance of the drainage pumping station

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Code No: T-03-03300-0404-066279 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 750,000 0 0 0 750,000 5,750,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,750,000 5,750,000

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Code No: T-03-03300-0302-066280 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Follow Up Project for Integrated Sediment Related Disaster Management : 24 months : DKI Jakarta : Ministry of Public Works : Ministry of Public Works

6. Background and Justification The concept of Integrated Sediment Related Disaster Management (ISDM) is to secure the safety of communities by best synthesizing non-structural and structural measures in accordance with the local conditions, through collaboration between the local communities and the government organizations including cooperation between the local and central governments. The ISDM should be implemented in consideration of the low cost and practical measures in accordance with the local and central situations. The ISDM should be implemented in consideration of low cost practical measures and contribution to improvement of the rural living standards. Some parts of activities have already been done by the project. But the expected full of achievement has up to March 2006 not yet been accomplished. Because it has taken many processes to develop preparedness against disaster with the collaboration before occurrence of disaster seriously as current situation. While the methodology of ISDM was recognized to be effective for community development and participation of local people after disaster occurred area such as Mt. Bawakaraeng disaster prone area, South Sulawesi and JBIC have started to use the methodology for new loan. In addition, some parts of the supports cant be done such as management of the MPBA course in University of Gadjah Mada for fifth semester students until March 2007 as a system. It is expected to develop the methodology of ISDM with concrete activities in the local area as well as through sustainable human resource development program in UGM by extending the ISDM project as technical cooperation program until March 2008. 7. Priorities a. Infrastructure b. Education and Health 8. Objectives To plan and implement disaster mitigation measures to reduce the impacts of sedimentrelated disaster on villages in volcanic area.

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Code No: T-03-03300-0302-066280 9. Activities a. To establish the working committee for disaster management model b. To establish local organizations and systems for disaster mitigation c. To establish methods of disaster rehabilitation measures of devastated areas 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,000,000 0 4,000,000 600,000 0 0 0 600,000 4,600,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,600,000 4,600,000

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Code No: T-05-03300-1005-066281 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Overseas Training on Water Allocation and Drought Management : 24 months : DKI Jakarta : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification The Government of Indonesia (GOI) is now reforming the water resources sector called the WATSAP (Water Resources Sector Adjustment Program).Based on this reform, GOI issued Law No.7/2004 on Water Resources on March 18, which is the amendment of Law No.11/1974 on Water Resources Development. The revised Law newly stipulates introduction of Water Use Right (WUR). According to the report of the World Bank, it is recommended that WUR in Indonesia should refer to the WUR that is found in Japan. Actually, since water management system in Japan is formulated under the similar condition as in Indonesia, such as geomorphologic and hydrological conditions and actual water use conditions that irrigation water for paddy field accounts for majority of total amount of intake water, Indonesia can learn a lot from the Japanese WUR system. Due to the existence of a long dry season, many people suffer from drought every year. To cope with the drought, the GOI has developed many water resources such as by the construction of reservoirs, however it takes a long time to construct enough reservoirs and release many people from drought. In this regard, not only structural measures, namely to develop water resources, but also non-structural measures should be taken into account. Japan is also one of countries frequently hit by drought. In order to cope with drought, some non-structural measures have been introduced to save water, establishment of organization for coordination among water users at the time of drought. For smooth introduction of the above coordination, the introduction of the WUR is essential which can clarify when, where, and how much water can be taken by who on a legal basis. Therefore, WUR and drought management are closely related. 7. Priorities a. Education and Health b. Infrastructure

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Code No: T-05-03300-1005-066281 8. Objectives a. To transfer knowledge of water use right and drought management systems in Japan based on lectures and visitation to some fields. b. To transfer knowledge from the trainers to Indonesian government officials after the training program 9. Activities Lectures and visitation 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 75,000 0 0 0 75,000 5,075,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 5,000,000 75,000 5,075,000

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Code No: T-03-03300-0404-066282 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Water Quality Management and Water Resources of the Upper Citarum River Basin : 24 months : Upper Citarum, West Java : Ministry of Public Works : a. Directorate General for Water Resources, Ministry of Public Works b. Local Government of West Java

6. Background and Justification Degradation of the water-related environment in the Citarum River is caused by pollution from untreated waste water, solid waste from factories and houses in and around Bandung City, and also by the poor management of the upper watershed including the forest area control. This tendency in the upper basin of Citarum River has numerous negative impacts on the functions of water resources facilities, on water for domestic purpose for not only Bandung area but also the Jakarta Metropolitan area, on electric generation, on fish farming in the reservoirs, and possibly even on human health. It is, therefore, urgently required to develop a framework of the basin management mainly focusing on the water-related environmental issues of the Upper Citarum River Basin, which should include water pollution countermeasures and forest area control. In addition, further capacity development is also urgently requested in parallel with the development framework including the fund arrangement approach. If concrete measures are not taken, these situations are expected to get worse. Therefore, support for the water-related environmental management in the Upper Citarum River Basin is essential. 7. Priority Infrastructure 8. Objectives The objectives of the study are: a. To update and integration of Master Plan (M/P) by reviewing the existing plans for the improvement and management oriented to water-related environment of the Upper Citarum River Basin. b. To develop sectorial and/or issue-based Action Plans (A/Ps) for implementation of the program composing M/P c. To transfer technology to counterpart and related organizations through the Study T- 267

Code No: T-03-03300-0404-066282 9. Activities a. Phase I (M/P Update Phase) 1) Review of the existing/on-going plans on water-related environment 2) Confirming and updating the information on the conditions of water-related environment 3) Specific Survey 4) Integration of Master Plan b. Phase II (A/Ps Preparation Phase) 1) Action plan for rehabilitation of water resources facilities in the Upper Citarum River and/or Saguling reservoir 2) Action plan on domestic waste water treatment 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,600,000 0 3,600,000 540,000 0 0 0 540,000 4,140,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,140,000 4,140,000

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Code No: T-03-03300-0404-066283 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Comprehensive Study on Tondano-Lemebeam-Lekpang Water Resources Management in North Sulawesi : 24 months : North Sulawesi : Ministry of Public Works : a. Directorate General for Water Resources, Ministry of Public Works b. Local Government of North Sulawesi

6. Background and Justification Manado with a population of 420,000 is important for the province, not only as its provincial capital but also for tourism and the economy, while Bitung has been developed in parallel with investment in an international port and industrial areas. However, the anticipated water scarcity will hinder sustainable development in the region. Future water demand in Tondano and Lambean-Likupang basins are projected to increase by over 1.6 times (8,355 liter/sec in 1995 to 13,443 liter/s in 2020) and by over 3,2 times (4,619 liter/s in 1995 to 14,979 liter/s in 2020). Besides, there are disaster issues in the region, such as 1) periodic serious floods in Manado, 2) debris flows in Bitung and its surrounding area, 3) water quality deterioration, namely eutrophication in Tondano lake and high turbid river water in Manado because of disorderly sand/soil mining. Those issues have significant adverse effects on water resources and its utilization, economic development and poverty reduction. Resources management is important for obtaining integrated solutions to the problems and for strengthening the existing water resources management system of the province. It is also important to conduct an intensive capacity building to the local governments concerned in view of the decentralized condition. 7. Priority Infrastructure 8. Objectives a. To formulate a Master Plan (M/P) and conduct a Feasibility Study (F/S) for priority project(s) to meet future water demands and mitigate water related issues b. To strengthen the local government capacity on water resources management

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Code No: T-03-03300-0404-066283 9. Activities a. Phase I Master Plan 1) Public consultation meeting I 2) Collection of existing data and information 3) Review of regional development plan 4) Demand study 5) Potential study 6) GIS database construction 7) Formulating of master plan 8) Evaluation of the master plan 9) Selection of priority project 10) Public consultation b. Phase II Feasibility Study 1) Plan and design of priority project 2) Project evaluation 3) Implementation program 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,750,000 0 4,750,000 713,000 0 0 0 713,000 5,463,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,463,000 5,463,000

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Code No: T-03-03300-0404-066522 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Technical Assistance for Curug Irrigation Pumping Station and Jatiluhur Hydroelectric Power Plant : 36 months : West Java : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification a. Curug Pumping Station Curug Pumping Station located at Citarum river downstream of Jatiluhur reservoir has been rehabilitated from 1997 up to June 2002. The rehabilitation included : 1) The 6 pumps with 450 inclined shaft of the existing pumping stations have been replaced with 6 new pumps with vertical shaft (4 x 17,5 m3/s and 2 x 10 m3/s, all electrical and mechanical auxiliary equipment and using new technology 2) Construction of one mini hydropower plant with two horizontal units (2 x 3,75 MVA) in the central bay of the existing weir. 3) Replacement of all electric equipment of the switchyard Due to the advanced technology of new installation, it is absolutely necessary to carry out an intensive training of the new PJT II maintenance staff which will allow PJT II technicians and engineers to effectively maintain and operate the pumping station and the hydropower plant. In addition, some modification/work which was not included in the previous rehabilitation has to be done in order to improve the performance of the plant. The technical assistance will secure the water demand along the east canal and the power supply from the power plant, which was mainly designed to supply electric power to the pumping station. b. Jatiluhur Hydropower Plan The Ir. Juanda Project is a multipurpose scheme providing irrigation storage and hydro electric power. It is situated on the Citarum river about 70 km South East Jakarta. The construction embodies a tower which is unusually bold in its concept in which installed 5 x 35 MVA and 1 x 40 MVA hydropower units have been installed, after the last rehabilitation carried out from 1994 up to 1997. During the rehabilitation, it was found that it was impossible to reuse the existing thrust bearing of the units, as the cost of this equipment was not included in the budget, most of the spare parts were cancelled to cover the cost of new thrust bearings. T- 271

Code No: T-03-03300-0404-066522 At consequence since more than 2 years there is no more spare parts available and only 3 units are presently operational. Considering that electric power demand is continuously growing, it is absolutely necessary and urgent to recover the full capacity of this scheme which is connected to the national grid. In the present condition of the electric power plant, a significant loss of energy, estimated at 90 MW/hour, occurs during the rainy season. For the same reasons as already mentioned for Curug Pumping station, it is necessary to carry out an intensive electrical and mechanical training of PJT II maintenance staff in order to satisfactorily operate an maintain the equipment, avoiding long and costly downs of the units in case of problems. After 9 years of operation, it is time to carry out a complete inspection of the units and auxiliary equipment and to fix all the problems on replacement of some mechanical wearing parts recalibration and resetting of the protecting devices and in general of all the electrical equipment. 7. Priority Infrastructure 8. Objectives a. Curug Pumping Station 1) To carry out some additional works in order to improve the efficiency of the scheme. 2) To improve the protection of the new equipment installed during the previous rehabilitation 3) To improve the protection of the network in this area i.e. replacement of the old 6 kV cells in the switch yard with news cell equipped with efficient protection 4) To make operating the 2 units of the mini-hydro (remote control of upstream gates) become more easy and to limit lowering time of the upstream stop logs in case of emergency i.e. rehabilitation of the concern monorail. 5) To satisfactorily operate the east pumping station and the hydropower plant after the intensive training of PJT II staff. 6) To secure the water need along the east canal. 7) To secure the electric power production. 8) To allow the maintenance staff not requiring external assistance after completion of the training.

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Code No: T-03-03300-0404-066522 b. Jatiluhur Hydroelectric Power Plant 1) Purchase and installation of new spares will permit to recover the full capacity of the power plant and to allow time to time shutdown of one unit for regular maintenance securing the normal life of the equipment. 2) Purchase of the additional spare parts for several years that will avoid the recurrence of the current situation in the future. 3) The general inspection of the installation will yield the necessary information concerning the exact condition of the equipment after 9 years of operation and produce the proposal on the necessary remedial action to be done. 4) As the Curug Pumping Station, an intensive training of PJT II maintenance staff will allow the team to quickly find the origin of the problems and to repair within a time as short as possible, and reduce the loss of energy and the consequent cost 9. Activities a. Curug Pumping Phase I : General inspection of the electromechanical installation Phase II : 1) Carry out the necessary study and additional works as mentioned in the T.O.R in close cooperation with PJT II staff 2) In a first phase intensive training of PJT II maintenance staff during the implementation of the additional works on site. In a second phase theoretical training (courses) covering entire installation including applying the learning progress on site i.e. fault simulation, investigations, action to be done, and reporting. b. Jatiluhur Hydroelectric Power Plant Phase I : General inspection of the electromechanical installation Phase II : 1) Order and procure the spare parts to be replaced for recovering the full capacity of the plant. 2) Order and procure additional spare parts for the future

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Code No: T-03-03300-0404-066522 Phase III : Implementation of the work to be done in cooperation with PJT II staff, and in parallel with training of the maintenance staff. Phase IV : Intensive theoretical training covering the entire installation of the hydropower plant including applying the learning progress on site i.e. fault simulation, investigation, action to be done, report. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,158,000 0 4,158,000 0 0 0 0 0 4,158,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,158,000 4,158,000

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Code No: T-03-03300-0690-066542 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Water Resources Policy Advisor : 12 months : DKI Jakarta : Ministry of Public Works : Directorate General for Water Resources, Ministry of Public Works

6. Background and Justification The Government of Indonesia (hereinafter referred to as GOI) is now reforming the water resources sector called WATSAP (Water Resources Sector Adjustment Program). Based on this reform, GOI issued Law No. 7 of 2004 on Water Resources on March 18, which is the amendment of Law No. 11 of 1974 on Water Resources Development. The revised Law stipulates (i) sharing between the central and regional governments in consistency with GOIs decentralization policy, (ii) strengthening of water resource conservation, (iii) prioritizing water supply for basic human needs in provision water resources, (iv) introduction of water utilization right, (v) development of water resources information system, (vi) introduction of public participation and capacity development to the stakeholders concerned, (vii) clarification of financing of water resources management, (viii) information disclosure, (ix) establishment of water resources council, (x) settlement disputes on water resources, etc. GOI is now entering the application stage of proposed water resources management framework to the field and intends to further improve the framework based on the result of applicability. To promote the sector reform, GOI takes note of water management system Government of Japan as the good practice, which we formulated under the similar geomorphological and hydrological conditions to Indonesias order to investigate the actual water resources management system in Japan, GOI dispatch a delegation comprising members of the parliament to Japan in July 2003. In addition, the Japanese Prime Minister and the Indonesian President have in June 2005 made the Joint Announcement on Disaster Reduction from the viewpoint that the two countries share geological and geographical similarities and face a similar range natural disasters thus expecting high effectiveness and productiveness through cooperation between two countries in this field including flood and water related disasters. In view of the said circumstances of Indonesian water resources sector, GOI request GOJ to dispatch a successor or extend the term of the existing JICA expert on water resources policy to Directorate General for Water Resources and continuously support to sector reform. T- 275

Code No: T-03-03300-0690-066542 7. Priority Infrastructure 8. Objectives a. To provide advice and / or guidance mainly on sector reform activities of the Directorate General for water resources and its related organizations and formation of water resources related projects. b. To support on going studies and projects for their smooth implementation c. To foster coordination and cooperation between agencies concerned in this sector d. To enhance the capacities and capabilities of the stakeholders concerned through the technical cooperation 9. Activities Long term expert 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 0 0 0 0 0 2,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,000,000 2,000,000

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Ministry of National Education

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Code No: T-05-02300-1005-061303 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Masters Degree for Primary and Secondary Staff 24 months DKI Jakarta Ministry of National Education Ministry of National Education

6. Background and Justification Teaching a foreign language at primary and secondary schools requires some experience of using the target language and pedagogical knowledge at primary and secondary schools. Nowadays, teachers and educators have tremendous responsibilities in applying the knowledge completely and professionally at schools. In order to implement the tasks successfully, there are a lot of obstacles that have to be taken into account. First is the lack of pedagogical knowledge of primary and secondary schools. Second is the limitation of sources in pedagogy at primary and secondary schools. These are the problems that most teacher trainers face. Language Teacher Training and Development Centre (PPPG Bahasa), therefore, as the institution which is in charge of upgrading the language teachers form elementary and secondary, has to be able to upgrade the teacher trainers competence and teaching knowledge at primary and secondary levels. Moreover, the teacher trainers have enormous responsibilities in not only upgrading language teachers but also being the role models for foreign language teachers in Indonesia through the workshops of teachers trainings. They must assist teachers in giving the appropriate method in language teaching and learning and make the materials delivered and implemented easily in classrooms. Therefore, it is necessary to increase the language teachers competences by following masters degree in overseas. First is the number of sophisticated facilities offered by the universities such as libraries, sources, technology in computers, experts and research consultants; Second is a number of good schools that can be some examples of the implementation of education theories. In conclusion, the project purpose of sending the teacher trainees to study in Japan is considered to be an appropriate choice in order. 7. Priority Education and Health

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Code No: T-05-02300-1005-061303 8. Objectives To learn good education system in other country that can be hopefully implemented in the primary and secondary education systems in Indonesia. 9. Activities Overseas Master Degree 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 1,000,000 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-05-02300-1003-061304 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Profile of Senior Secondary Education in Indonesia 12 months DKI Jakarta Ministry of National Education Directorate General for Primary and Secondary Education Management, Ministry of National Education

6. Background and Justification Quality Basic education creates the educated citizenry necessary for proper functioning of democracy, but cannot yet create a labor force which can support an internationally competitive industry. Nine-year universal basic education is expected to be achieved by 2009, therefore, as a next step, the Governent of Indonesia (GoI) will aim toward universal 12-year education or SSE (covering General Schools (SMA) and Vocational Schools (SMK) by starting with the more prepared regions/population. SSE gross enrollment ratio in 2005 is around 52.2%, and the target for 2009 is 62.5%. To some extent, as incrasing numbers graduate form junior secondary education, it is expected that there will be a natural push to enter SSE. Presently, approximately one third of SSE graduates move directly into the labor force, while two thirds go on to tertiary education. Therefore in addition to raising the transition from junior secondary education, in SSE there is the issue of how to crate qualified graduates for both industry and tertiary education. Moreover, within SSE, improving the quality, reputation, and intake of SMK is a big challenge. All the above issues and challenges must be addressed in order to ensure that SSE becomes an effective bridge to create a strong labor force and more informed and capable citizens. 7. Priority Education and Health 8. Objectives To achieve individually mapping local education area as basic JSE to entrance SSE in order that improvement SSE graduates to create strong labor force and more informed and capable citizens.

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Code No: T-05-02300-1003-061304 9. Activities a. To identify and plot condition of each local education area in order to understand the unique characteristics; b. To collect and well organized data is an essential tool for goor management of education; and c. To make an individually mapping education area for each province. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 0 0 0 0 0 2,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,000,000 2,000,000

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Code No: T-05-02300-1002-061305 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Regional Education Development and Improvement Program for Basic Education : 12 months : DKI Jakarta : Ministry of National Education : Directorate General for Primary and Secondary Education Management, Ministry of National Education

6. Background and Justification Since the government has launched the 9 year compulsory basic education program, considerable progress has been made in many areas of basic education (including special education) in Indonesia. However, the current basic education system still has deep rooted problems which stem from a variety of causes including under funding, poor management, lack of support of communities, and poverty. In the past, the government has managed education in a centralized manner, which resulted in the rigid guidelines on the administration of schools and the delivery of curriculum. In addition, local government acting under the direction of the central government has been responsible for building and maintaining school facilities and providing materials and books. The poor condition of many schools and an insufficiency of books and materials, added to the limited teaching methods used by most teachers illustrate the inefficiency of this approach. The decentralization of government has had far reaching consequences for the management of basic education. Although many functions of the various levels of government are not yet clearly defined, most funding for schools is being allocated by districts government, which also has the responsibility for the quality of education offered in their areas. The proportion of funding being allocated directly to schools has increased substantially over the past years. Introduction of school committees has changed the governance of schools and give the community a greater say in the management of schools. It is clear that the most successful schools in Indonesia and in other countries are those where head teachers, teachers, and communities work actively together to develop their schools. The increasing concern for basic education of the government and local government is the not sufficiently u improved quality of basic education. Qualities of basic education in several districts, in several provinces are still low and left behind compared to other districts and provinces. Therefore, the one of the main concern for improving basic education is to improve the quality of basic education in such provinces. 7. Priority Education and Health T- 283

Code No: T-05-02300-1002-061305 8. Objectives a. To improve the quality of learning by : 1) Developing School Based Management to create more transparent and efficient management and use of resources; 2) Increasing community participant by involving parents and community in supporting improvement in the quality and management of education; 3) Developing contextual teaching learning primary and junior secondary school. 4) Developing active, joyful and effective learning (AJEL); b. To create and disseminate models of sustainable quality improvement strategies, interventions and results using existing structures. 9. Activities a. Work with all stakeholders and within existing school structures, including school clusters, teachers working group and head teachers working group and the government administrative and supervision system; b. Train together in order to create dialogue, mutual understanding and support all stakeholders including teachers, head teachers, school supervisor, education administrative staff, parents, and school committee; and c. Development team in district and school clusters receives a block grant to finance their activities. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-05-02300-1005-061306 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Short Course for Management and Quality Improvement in Primary and Secondary Education : 12 months : DKI Jakarta : Ministry of National Education : Directorate General for Quality Improvement for Techers and Education Personnel, Ministry of National Education

6. Background and Justification Language is a means of verbal communication among human beings and as an instrument to unite a nation. The ability to communicate effectively will help us to interact with each other. Effective communication enables us to convey our feelings, hopes and ideas effectively. In addition, we can also figure out other peoples ideas, hopes and feelings. Since the interaction is not only among colleagues, but also among other nations, both native and foreign language mastery is important. The importance of language in human life is undisputed. Everyday communication will be more effective and efficient using language, either in spoken or written form. In broader scope, language is very much needed in the process of culture transfer from one generation to the next. Todays technology and knowledge will be impossible to exist without the process of culture transfer by using language as media. Based on that point of view, language Teacher Training and Development Centre (PPPG Bahasa) as an Institution under The Directorate General for Quality Improvement for Teachers and Education Personnel shouldering the responsibility for the improvement of language teachers competence should always be able to develop itself, including its human resources and management. The ability of PPPG Bahasa to improve both its program and human resources, undoubtedly will generate language education condition in Indonesia into qualified level, thus it means the improvement of education in Indonesia. Having this point of view, PPPG has been revitalizing itself in every aspect such as human resource development, facilities and programs. This is in accordance with the goal of becoming a centre of information on education qualification guarantee, particularly the quality of language education. Due to that vision, PPPG has been doing wide range activities in fulfillment of this obligation. These activities include: competency-based teachers trainings leveled into: basic, middle and advance, trainings of trainers and short-courses for teacher trainers. Sending teacher trainers and teacher trainer candidates to trainings abroad is one of the steps that PPPG Bahasa can do to revitalize its human resource. However, to have it by self-funding seems difficult to realize. Therefore, this proposal is one of the efforts that PPPG Bahasa can attempt due to the Indonesian financial problem. This proposal entitled Training in Japan for Education Management and Quality Improvement in Primary and secondary Education is an expression of PPPG Bahasa concern to advance language learning in Indonesia. T- 285

Code No: T-05-02300-1005-061306 The program is proposed to enhance the quality of PPPG Bahasa human resources, i.e., the knowledge and ability of its teacher trainers (widyaiswaras) and teacher trainer candidates in education management and quality improvement in primary and secondary education. As one of the in-service teacher training institutions under the Ministry of National Education, PPPG Bahasa bears the responsibility to be the thing tank institution and generates innovative ideas and breakthrough as well in language learning. The long-term goal of this program for PPPG Bahasa is to empower internal potency in order to reach short term, middle term and long term goals of the institution in the hope that it would be able to give PPPG Bahasa an identity and an existence as a language education quality assurance centre which ultimately has an impact on the quality improvement of language learning from primary to secondary level in Indonesia. 7. Priority Education and Health 8. Objectives To improve the service quality, professionalism, and productivity of the institution in order to prepare itself and be proactive in facing the era of democratization, transparency, and decentralization and in embarking globalization. In addition, it is aimed to enhance the knowledge and ability of its human resources in education management and quality improvement in primary and secondary education in order to shoulder the task of quality assurance optimally. 9. Activities Short courses 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 0 0 0 0 0 5,000,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,000,000 5,000,000

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Code No: T-05-02300-1005-061307 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Short Course for Planning and Management of Primary and Secondary Education : 12 months : DKI Jakarta : Ministry of National Education : Language Teacher Training and Development Centre, Ministry of National Education, Ministry of National Education

6. Background and Justification Language Teacher Training and Development Centre (PPPG Bahasa) as an institution with the task to train language teachers has the possibility to plan and manage the primary and secondary education. It is stated in the ion of PPPG Bahasa; that is to provide consultancy and management service in language education. It is explicitly stated that PPPG Bahasa is to conduct technical of education to improve teachers competence. Short course program will be one of the efforts to recharge PPPG Bahasa human resource, to equip the staff and the teacher trainer candidates with sufficient knowledge of planning, controlling and managing the primary and secondary education. They will surely disseminate the knowledge they obtain from the short course they will undergo. It also provides any current language learning theories, knowledge even practice to compare, adapt and adopt in Indonesia. It is highly expected that ultimately the development of PPPG Bahasa has an influence on the development of language learning in Indonesia. PPPG Bahasa is committed to become the leading language teacher training and development centre in Indonesia and internationally admitted as well. In all, the PPPG Bahasa has a significant role in advancing education in Indonesia. 7. Priority Education and Health 8. Objectives It is expected that by joining the short course, teacher trainer candidates and the staff will: a. Enhance their knowledge on planning and management of Primary and Secondary Education; b. Enhance their planning and management ability; c. Be able to implement their knowledge they obtain during the short course; and d. Have better perspective toward educational system. T- 287

Code No: T-05-02300-1005-061307 9. Activities a. Short courses; and b. Comparative study. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 0 0 0 0 2,000,000 2,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,000,000 2,000,000

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Code No: T-05-02300-1005-061308 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Higher Education Training on Developing Education Content for Mobile Learning : 12 months : DKI Jakarta : Ministry of National Education : Directorate General for Higher Education, Ministry of National Education

6. Background and Justification Ensuring access to the fundamental tools of the digital society is one of the most significant investments the world can make for the future. Information and communication technology (ICT) is a term which is currently used to refer to a wide range of services, applications, and technologies, using various types of equipment and software, often running over telecoms networks. ICTs provide nations an opportunity to increase efficiency in public administration and the business arena, enhance industrial productivity, and promote competitiveness in trade and commerce. ICT is a crucial factor in enhancing community prosperity known as e-prosperity. ICT also has become the main issue in the UN agenda, due to its role as an enabling factor to new economy. Wireless broadband is emerging technology in the ICT world that is predicted to influence the way human live and work in the very near future. The government of Indonesia has just launched its 3G frequency tender in 2006. Five wireless operator companies have been selected namely. In the mean time, WiMAX technology has developed very fast and started to be deployed around the world in 2005. Both 3G and WiMAX share the same capacity term, namely broadband. The government of Indonesia is now preparing the policy and regulation on wireless broadband technology deployment in Indonesia. However, our governments main concern is on how these new technologies contribute to the development of our nations capacity building. Among the nations capacity that is expected to develop are human resource competence and the engagement of local universities and industries that may support these technologies and take advantages of the emergence of these technologies. Local Universities and companies may take roles as HRD provider, application service providers and content service providers. Indonesian universities are in need to cope with the development of ICT and wireless broadband contents and applications. One way to bridge this gap is by learning from developed countries such as Japan. Current Difficulties in Indonesia are: a. Lack of experience in utilizing multimedia as medium of learning; b. Lack of knowledge and skill in developing applications that fits the requirement of mobile learning and wireless devices; and T- 289

Code No: T-05-02300-1005-061308 c. Limited budget for running facilities in Universities in Indonesia to do research and development in mobile contents. 7. Priority Education and Health 8. Objectives To produce lecturers with more knowledge and real work experience on developing application and contents for e learning and wireless device. 9. Activities a. Indonesian Higher Education Network (INHERENT) providing national internet backbone and its content for higher education in Indonesia (However, this is not intended to support short-term); b. Training will consist of: e-learning content service system, authoring tools development, video capture and camera work technique, learning management system development, steaming server technique, content editing technique and practice to make prototype content. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 0 0 0 0 0 2,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,000,000 2,000,000

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Code No: T-05-02300-1005-061309 1. Project Title 2. 3. 4. 5. 6. Duration Location Executing Agency Implementing Agency : Long Term Training for Researchers at the University of Indonesia : 12 months : DKI Jakarta : Ministry of National Education : University of Indonesia

Background and Justification Academic experts who can conduct research and educate younger generation on Japan in the field of social sciences are decisively necessary for strengthening bilateral relation, cooperation and understandings between Japan and Indonesia. However, building the reproduction cycle of social scientists in Japanese study is just in process, so that such researchers in Indonesian universities are still insufficient in quality and quantity. It is difficult for young Indonesians who study Japanese studies in Japan and obtain doctoral degrees in Japanese universities while getting acquainted with Japanese society or culture, much more to get stable status in Indonesian universities. In such terms, it is quite important, in the first place, to train young promising researchers into specialists on Japan, and to place them in the major higher educational institutes.

7. Priority Education and Health 8. Objectives To dispatch young Indonesian researchers in order to give them the opportunities to obtain academic degrees in the graduate schools. 9. Activities Long term overseas training 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000

0 1,000,000 1,000,000

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Code No: T-05-02300-1005-061310 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Training of Education Trainers 12 months DKI Jakarta Ministry of National Education Directorate General for quality Improvement of Techers and Educational Personnel, Ministry of National Education

6. Background and Justification In the 2004-2009 Medium-term Development Plan of Indonesia, Education is stated as an important aspect of development of social foundations. The strategic plan of the education sector emphasizes: 1) Equitable expansion of access to education, 2) Improvement of quality and relevance of education, 3) Improvement of Governance and accountability of education. A major target in education is the achievement of 9year compulsory education (GER of junior secondary education to 100%) by 2008. Key approaches taken towards reaching this goal include: school-based management, community participation, decentralized administration. However, there are several challenges in achieving these goals. One of the major challenges in terms of improving the quality and relevance of education is the substandard level of teachers and educational personnel. Recognizing the importance of this issue, Ministry of National Education (MONE) newly established Directorate General for quality Improvement of Techers and Educational Personnel (DGQITEP) in 2005, tasked with tackling the issue. 7. Priority Education and Health 8. Objectives a. To introduce other country experiences in education system management and quality improvement (especially in lesson-study and in-service teacher training (in order to deepen the participants understanding of in-service teacher training; b. To study and analyze the applicability of other country policies and practices to the current Indonesian situation.

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Code No: T-05-02300-1005-061310 9. Activities a. Overseas training; b. Comparative study 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 500,000 500,000 1,000,000

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Code No: T-05-02300-1090-061311 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Enhancement of Educational TV Programs to Improve Opportunity for Nation Wide Basic Education, Especially in Remote Areas : 12 months : DKI Jakarta : Ministry of National Education : Center for Information and Comminication Technology for Education, Ministry of National Education

6. Background and Justification Although Indonesia has virtually achieved universal primary education and has set the goal of achieving universal junior secondary education by 2008, human resources need to be developed further in order to allow Indonesia to face global competition in the open competitive global market. Qualified human resources are subject to constant change, and therefore education and training systems must constantly upgrade skills taught consistent with emerging needs. To ensure that the National education system meets national and global standards, advanced information and communication technology should be optimally utilized. Accordingly, Government intervention is required to create and strengthen the quality of education through the development and application of information technology especially television. Most Indonesian communities, even those live in remote areas, own television sets. Considering this, television is a potential media for delivering education through their programs. Educational programs could be expected to improve the quality of education and accordingly improve the quality of the Indonesia human resources. Moreover, providing education television gives increased learning opportunity for those children in remote areas, and may help to decrease disparity among regions. Such innovations could be realized through improving Educational Television or Televisi Edukasi (TVE) which is a television broadcast which specializes in educational broadcasting, and which is established under the Ministry of Educations Center for Information and Communication Technology for Education (Pustekkom). Since 2004, Pustekkom has developed some educational programs through TVE (Education Television) that has been broadcasted all over Indonesia by using its Telkom 1 satellite To allow reception of these programs, Pustekkom has distributed 350 TV sets and satellite receivers to 450 schools in Indonesia. In addition, it has collaborated for broadcasting with 54 Indonesian local TV stations and beginning on 17 July 2005. Pustekkom has resumed collaboration with the nation-wide TVRI station. 7. Priority Education and Health T - 294

Code No: T-05-02300-1090-061311 8. Objectives To create and strengthen the quality of education through the development and application of information technology especially television. 9. Activities a. Upgrading skills staff of Pustekkom through training on TV programs; b. Developing innovative educational TV programs; and c. Equipment. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 0 0 0 0 0 2,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,000,000 2,000,000

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Code No: T-05-02300-1006-061527 1. Project Title 2. Duration 3. Location 4. Executing Agency 5. Implementing Agency : ASEAN University Network/Southeast Asia Engineering Education Development Network (AUN/SEED Net) Phase II : 36 months : Institute Technology of Bandung (ITB) and University of Gajah Mada (UGM) : Ministry of National Education : Institute Technology of Bandung (ITB) and University of Gajah Mada (UGM)

6. Background and Justification The first phase of the project that started in 2003 will end by March 2008. To date, ITB as a host institution for the ME/AE field as well as UGM as the host institution for the geological engineering, have benefited from many programs with AUN/SEED-Net project resulting in improved capacity and quality of its graduate program as well as establishing a working network within the region. One of the achievements of the program at ITB and UGM, is that most of the master program graduates have continued their PhD program at several reputable universities in Japan and Europe. Simultaneously, there has been improvement in the research quality as indicated by increased number of publication. At the same time, ITB and UGM also have made use the scholarship scheme to send its graduates for advenced degrees. The economic growth of ASEAN countries and the increased in industrial production will push the needs for engineering research and development activities in the region. Regionally, there is a rising demand for higher education in Asia that also affect the engineering student population. In Indonesia, the Department of National Education reported that in 2005 there are 3,786,400 students enrolled at higher education institutions, out of 25,306,600 Indonesias population in the 19-24 year age-bracket. The strategic plan calls for an increase to 4,556,500 students out of 25,311,900 19-24 year old Indonesian population by 2009. Form those figure, there are approximately 42,000 ME/AE students in 2005 and this number is expected to increase by around 20% in 2009 to meet the demand from industry. For sustainable industrial development, it is a goal of each member institution to produce graduates with masters and doctoral degrees of international standard in the engineering field. Therefore the government of the Republic of Indonesia is very keen on continued support for the program to capitalize upon opportunities discussed above. Through Phese II of the project, there will be an increased numbers of scholarships, research collaboration activities and strengthening the netwotk.

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Code No: T-05-02300-1006-061527 7. Priority Education and Health 8. Objectives a. To provide scholarships to students in masters degree programs, doctoral degree sandwich programs, and doctoral degree programs in Japan; b. To obtain an increasing number of scholarships and incoming students from Mis with the support of AUN/SEED-Net; c. To improve the quality of research and education through increasing research projects and fund, and also supported by the increase of the number of student from MIs pursuing their PhD degrees at ITB and UGM, both via sandwich or full time at ITB and UGM; d. To strenghthen academic and research capabilities through the Japanese professors dispatch program, the short-term study program, and the short-term visit program; e. To establish a stronger networking amongs Mis; f. To strengthen the academic programs at Mis via staff development and collaborative research activities; g. To facilitate gathering of all expert concerned through the field wise seminar program; h. To capitalized ITB and UGM experience as core university and exisitng national network to include the involvement of other Indonesian higher education institutions in AUN/SEED-Net activities; i. To foster international networking thorugh the collaboration in research and staff development programs; and j. To promote the promotional trip program in term of recruiting the excellent student which will host the programs. 9. Activities a. The core program for capacity enhancement include : 1) Masters degree program; 2) Doctoral degree sandwich program in ASEAN; 3) Doctoral degree program in Singapore; Doctoral degree program in Japan; 4) Short term training program in Japan. b. Collaboration research in the fundamental fields will be retained, consisting of 9 engineering fields (chemical engineering, civil engineering, electrical and electronics engineering, environmental engineering, geological engineering, information and communication technology, manufacturing engineering, materials engineering, and mechanical and aeronautical engineering. T- 297

Code No: T-05-02300-1006-061527 c. To generate : 1) Academic societies in the nine engineering fields; 2) Regional seminars or conferences; 3) Journals publications; 4) AUN/SEED Net alumni association; 5) Involvement of non member institutions through seminar participation or research collaboration; and 6) Relationship with ither region or network. d. To move towrad ASEAN-Japan partnership university of technology through encouraging : 1) Resource and facility sharing; 2) Center of excellence in engineering; 3) Joint graduate programs in engineering; 4) Masters sandwich program or credit transfer system; 5) Exchanges of faculty staff; 6) Team training; 7) Open courseware; and 8) E-learning/D-Learning programs 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 0 0 0 0 0 5,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,000,000 5,000,000

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Code No: T-05-02300-1006-061528 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Basic Education Sector Capacity Support Programme 2 : 66 months : DKI Jakarta : Ministry of National Education : Ministry of National Education

6. Background and Justification The project is in support of Ministry of National Education (MONE) strategic plan for 2005-2009, known as the RENSTRA, which has three pillars to its strategy: 1. Access; 2. Quality; and 3. Governance. The medium term goals for the basic education subs-sector include: (a) Increased financing operational budget, (b) Expanded access to early childhood education, and special schools to provide basic elementary education service in remote areas and sparsely populated islands, and (c) Special one roof schools to provide basic elementary education service in remote areas and sparsely populated islands; and (d) Recruitment of educators and education manpower. Cross cutting issues include improvement of governance, accountability, and public image, which is given repeated attention through the RENSTRA, with a set of indicators and milestones to mark progress in these areas. In order to deliver the medium term goals mentioned above, MONE needs to strengthen its financial managements and information systems. Supplementing MONEs RENSTRA is the specific plan for MORA schools, which emphasizes the need to close the gap between MONE and MORA managed schools. It acknowledge that the community base private schools which make up 90% of MORA schools need human resource development and additional resources if they are to deliver the national curriculum as well as the Islamic subjects they also need to offer. 7. Priority Education and Health 8. Objectives a. To achieve of MDG and EFA goals through good governance in education b. To improved delivery of decentralized basic education services by local governments and schools in programmed areas, and by extension in other locations. 9. Activities a. Strengthened capacity of the Policy Dialogue Board to conduct policy analysis, engage in policy dialogue with stakeholders and external development partners, and exercise oversight of basic education. T- 299

Code No: T-05-02300-1006-061528 b. Improved governance and efficient use through increased transparency, accountability, improved budget processes and performance based finacing, improved financial management and accounting, especially in local governments. c. Strengthened capacity of the existing information and performance assessment system to efficiently provide accurate and timely information to stakeholders at all levels.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 48,100,000 0 48,100,000 0 0 0 0 0 48,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 48,100,000 48,100,000

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Code No: T-05-02300-1006-061529 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agencies : Supporting for Education Sector Program : 36 months : National Wide : Ministry of National Education : Various Institutions

6. Background and Justification Every citizen has a right for educational services due to improving their quality of life. This is stated on Indonesias Constitution and government of Indonesia (GOI) is responsible to realize it. Education is one of main foundations for a developing country that tries to achieve a step as developed country. Education also has an important role in accelerating economy growth by providing high skilled labor which has technology and knowledge. The labor will have a positive contribution for enhancing productivity. In order to promote the development of education, GOI wants to support it in various programs. The conditions of education in many areas are very desolate. There some problems that is urgent to be solved. The problems are: (1) the rate of educational participation is very low; (2) the rate of children drop out from school is high; (3) the capacity of school comparing to the need of capacity is very low; (4) The rate of studentteacher ratio is low and the quality of teachers is also low; (5) The infrastructure of education is far from good. 7. Priority Education and Health 8. Objectives a. b. c. d. To support the development and to achieve equality in education for all levels. To improve the infrastructure of education. To improve the quality of human resources in education To support the development of educational policy

9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops on women participation in development program c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution

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Code No: T-05-02300-1006-061529 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 50,000,000 0 50,000,000 0 0 0 0 0 50,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 50,000,000 50,000,000

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Ministry of Trade

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Code No: T-02-09000-0401-064314 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Development of Trade Facilitation in Indonesia 48 months DKI Jakarta Ministry of Trade Agency for Trade Research and Development, Ministry of Trade

6. Background and Justification Indonesia often faces problems on some commodities that are quite important and sensitive to the society; such as rice, sugar, fertilizer, and cooking oil form CPO. The financing needs for the commodities sector are very large. However, producing farmers commonly face many obstacles in gaining access to credit. Loans offered by the Banks usually requires fixed assets as collateral that farmers cannot afford. Moreover, the prices of agricultural commodities particularly seasonal crops fluctuate significantly. This phenomena makes their bargaining position even weaker and consequently their competitiveness is also weakened. To overcome this situation and in order to give meaningful financial support to the farmers as well as to the smallholder community to have the ability to compete in global market, an effective and efficient instrument is needed. Therefore, the government as regulator and policy maker of the issues should have a comprehensive information system on the commodities that are compiled from various trusted parties that can be used by all policy makers. It is expected that there will be no data discrepancies. Present competition in trade sector has demanded every economy to have highest competitiveness in order to survive and to be the winner. After the worst crisis experienced so far, Indonesia is now on a recovery path. Even though the economy has shown significant improvement, it has been going slow compared to the neighboring countries. High competitiveness can be attained through creating sound domestic policy within the country. Without sound policy, it will be hard for an economy to get most benefit from international trade. There are several problems that hamper Indonesia to move forward in its recovery condition, such as weak law enforcement, investment climate problems, high cost economy, corruption, etc. There is an indication that those problems are due to improper regulations which are often made without clear and accurate background study. Therefore, regulatory reform becomes important to perform for Indonesia to assess the existing regulation in order to make the economy efficient. Indonesia often faces problems on some policies in particular its sectors. There are several problems that hampering Indonesia to move forward in its recovery condition, such as weak law enforcement, investment climate problems, high cost economy, corruption, etc. To reduce the negative effect of the regulations and prevent further severe losses, an assessment and evaluation of the policies is a must. T- 305

Code No: T-02-09000-0401-064314 7. Priority Employment, Investment, and Exports 8. Objectives a. To improve the welfare of farmers by giving them the opportunity to obtain better prices for their commodity by not selling their crops early during the harvesting season when the price is very low. b. To serve as a less intrusive and market based-instrument for government market inventory intervention and to make government have another resource to improve the national economy. c. To assess and to review trade regulations in order to identify which regulations have been causing problems as well as potential for new problems. Besides that, the project will also conduct policy implementation assessment, both at central and local government policy level and also dissemination of the project result(s). 9. Activities a. Warehouse Receipt b. Development of Indonesian Strategic Commodities Information System for c. Reformation of Trade Regulation in Indonesia 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 300,000 0 0 0 300,000 2,300,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,300,000 2,300,000

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Code No: T-02-09000-0401-064315 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development Study on Indonesian Trade Issues and Export Promotion Strategies : 36 months : DKI Jakarta : Ministry of Trade : Agency for Trade Research and Development, Ministry of Trade

6. Background and Justification The world economy, which is getting much more integrated, demands that each country improve their competitiveness in their superior commodities so it would still maintain and if possible increase their share in the world market. Besides the competitiveness factor, marketing and distribution also becomes an important factor which determine demand for those export products in the international market. Information about the product offered, quality and other information received by the targeted market will play an important role in creating demand of the product. Lack of interest from both local government and entrepreneur themselves to increase and to add value makes those products only have low competitiveness. One of the strategies to promote and market the product is by establishing trading house in the target market. Information about commodities offered, specifications, market potential and other information will be provided at the trading house. Information exchange and market intelligent also can take place there. In that case, with the support of a quality research, a package of development policy is needed to resolve the problems and at the end will increase Indonesia's product competitiveness whether in the domestic or in the international market. However, there should be a feasibility study to determine the best place to locate the trading house in order to attain most economic benefit from the establishment. The development and designing of Indonesia's superior product therefore it can be wellknown by the world and compete in both domestic and international markets. In addition, this activity is related to the governments program to start developing Indonesia's original products recognized as "Indonesia Design Power 2006-2010" which aims to improve Indonesia's product competitiveness and it is hoped that this research will be useful in the implementation of that program. To reveal the possibility and feasibleness of establishing Indonesian trading house at the target market / region in order to expand the market access and to observe the market potential. The outcome of this research is to create a strategy in designing, developing and promoting Indonesia's superior products which will have potential and competitiveness in both domestic and international market. Research on the feasibility of establishing Indonesian trading house at several trading partner countries and therefore can increase Indonesia's exports. T- 307

Code No: T-02-09000-0401-064315 7. Priority Employment, Investment, and Export 8. Objectives a. Develop cooperation between the Ministry of Trade, donor country, local government and private sectors in formulating the strategy and development of Indonesian product design which is appropriate to market demand and can compete in the domestic and international market. b. To reveal the possibility of establishing Indonesian trading house at the target market / region in order to expand the market access and to observe the market potential. 9. Activities a. Joint Research on the Indonesian Product Design b. Joint Research on the Establishment of Indonesian Trading House 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 60,000 0 0 0 60,000 1,060,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,060,000 1,060,000

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Code No: T-02-09000-0401-064316 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Export Promotion and Development of Market Access 36 months DKI Jakarta Ministry of Trade National Agency for Export Promotion, Ministry of Trade

6. Background and Justification In the globalization era, the business environment is highly competitive, since there is not only competition among local companies, but also between local and international companies. Companies are required to have appropriate business strategies in order to survive in the global competition. Most of Indonesian businesses are small and medium enterprises, which still need some supports from the government to be able to compete in the global market. One of the development programs of Indonesia is to improve the knowledge the skills of approximately 40 million medium and small scale enterprises. This increases need of experts for transferring knowledge and technology to compete in the global market, especially in the area of promotion and distribution, business matching and simulation, sales contract, market intelligent, management of inquiry, counseling and advocating for small and medium enterprise (SME) product quality, and quality certification of SMEs product. With this limitation, small and medium enterprises should collaborate among them and build a business group to expand their marketing network. Therefore, they can increase their products value added of Indonesia and produce-branded products recognized internationally. Problems faced by SMEs to enter the global market are: lack of knowledge in handling the trading house and lack of market information and marketing skills. 7. Priority Employment, Investment, and Exports 8. Objectives a. b. c. d. e. f. To provide a promotion center for SMEs products To improve product and service distribution of SMEs To provide qualified information services for SMEs To improve the capacity of human resources managing the promotion center To promote Indonesian wearing appareal products to domestic and international market To improve knowledge and skill of SMEs to penetrate the global market

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Code No: T-02-09000-0401-064316 9. Activities a. Managing Trading House for SMEs Export Development b. Promotion of Indonesian Branded Garment c. Penetrating Global Market Based on Korean Experience 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,910,000 0 5,910,000 887,000 0 0 0 887,000 6,797,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,797,000 6,797,000

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Code No: T-02-09000-0401-064317 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Increasing the Capability of Mastering Chinese Language for SME's and Government Officials : 12 months : DKI Jakarta : Ministry of Trade : National Agency for Export Promotion, Ministry of Trade

6. Background and Justification The economy of China has grown amazing fast. This increases the domination of Peoples Republic of China in international trade, which results in increasing the need of its trading partners to understand its language. This is because mastering the Chinese language will be an advantage for Chinas trading partners to penetrate Chinas market. Sin China is the important Indonesian export destination, mastering Chinese language, particularly for small and medium entrepreneurs and government officials will be an advantage for negotiating business deals and obtaining market information. Therefore, there is a need to improve the ability and experiences of Indonesian business communities and government officials in mastering Chinese language. 7. Priority Employment, Investment, and Exports 8. Objectives a. To increase the ability and experience of business community and government official in international language especially in the Mandarin language b. To increase trade relations with China 9. Activities a. Training for business community and government officials located in five province b. Training in China for one month 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,694,000 0 1,694,000 0 0 0 0 0 1,694,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,694,000 1,694,000

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Code No: T-02-09000-0401-064318 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Managing Trading House for Small and Medium Enterprises (SMEs) Export Development : 12 months : DKI Jakarta : Ministry of Trade : National Agency for Export Promotion, Ministry of Trade

6. Background and Justification The comparative advantage of Indonesian garment industries still depend on its low labor cost, which are not too much attractive to increase foreign direct investments in that sector. On the other hand, the industrial infrastructure (machineries) is already obsolete, which makes the production inefficient. Therefore, the restructuring of Indonesian garment industry is a must, by shifting its product to medium quality in the medium term, and produce a high quality product in the long term. In addition to that condition, Indonesian garment industries also need to conduct market research and product promotion to USA, EU and Japan by conducting exhibition, fashion shows, and in store promotion specially to improve Indonesian brand image in the world market. Therefore, Indonesia needs a trading house that provides product promotion activities and market research. 7. Priority Employment, Investment, and Exports 8. Objectives To promote exports and domestic use of Indonesian clothing wear 9. Activities a. Market research b. Product promotion c. Market testing

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Code No: T-02-09000-0401-064318 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,363,000 0 1,363,000 0 0 0 0 0 1,363,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,363,000 1,363,000

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Code No: T-04-09000-0401-064321 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : Support for Small and Medium Scale Industries in Agribusiness for Eastern Indonesia : 36 months : North Sulawesi, Central Sulawesi, South Sulawesi, SouthEast Sulawesi, Maluku, and North Maluku : Ministry of Trade : Indonesia Export Training Center, Ministry of Trade

6. Background and Justification Small and medium scale industries of agribusiness in eastern Indonesia still need some supports from government. This is because their skills and capability to compete in the global market is adequate. Currently, the products from this area are not able to penetrate the international market because of their poor quality. This is due to improper handling and lack of technology. Therefore, some training is needed for enhancing their knowledge in processing and handling their product, particularly agricultural products that needed some technology to preserve their quality. To acquire the applicable basic comprehensive knowledge of agribusiness and the necessary knowledge for competitive agro-processing products in the both local and the foreign market. At present the products from that area couldnt compete in foreign markets because of lack of technologies application, even the products sole after harvest thing with improper handling. Trainees are also expected to build up the alumninetwork and play important role for regional economic development. 7. Priority Employment, Investment, and Exports 8. Objectives a. To improve participants knowledge of Indonesian agribusiness development and regulation. b. To provide participants with knowledge of applicable agribusiness either in local or foreign market. c. To improve participants skill in business-planning. d. To improving participants skill in utilizing business networks. 9. Activities a. Expert and instructor in training management of agribusiness b. During the project implementation, the donor is expected to provide: Expert training and budget (in country and training in overseas) T - 314

Code No: T-04-09000-0401-064321 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-02-09000-0401-064322 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Technical Assistance for Capacity Building 12 months DKI Jakarta Ministry of Trade Directorate General for International Trade Cooperation, Ministry of Trade

6. Background and Justification The Directorate General for International Trade Cooperation (DGITC) served as the leading organization within the Ministry of Trade of the Republic of Indonesia in handling foreign trade affairs. Due to a rapid development in world trade environment which indicated by the increase constellation of recent issues and a highly trade competitiveness among nations, it is important DGITC to maximize its resources, as follows human resources and infrastructure and technology. With regard to the above mentioned resources, we considered that human resource development plays as the most key factors increasing the value added of whole resources. In this matter, we recognized the need to acquired the highly competence of human resources. The competency of human resources can be obtained through technical training program such as short course and workshop. 7. Priority Employment, Investment, and Exports 8. Objectives The overall objective of the training program is to strengthen the capability of human resources within the DGITC in the area of international trade negotiation and cooperation. To this extend the DGITC proposes to request a technical assistance following areas: a. Diplomacy and trade course b. Management information system c. Legal drafting (report writing) d. Language skills e. Office equipment 9. Activities a. Technical assistance in the area of human resources development b. Procurement of office equipment

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Code No: T-02-09000-0401-064322 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 4,130,000 0 4,130,000 0 0 0 0 0 4,130,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 4,130,000 4,130,000

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Code No: T-02-09000-0401-064323 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Improvement of Infrastructure Facilities and Human Resources Development in the Ministry of Trade : 12 months : DKI Jakarta : Ministry of Trade : Ministry of Trade

6. Background and Justification Indonesia economy is an open economy. Its consequence is that Indonesia has to adapt with the dynamic change of international economy towards trade liberalization so as to gain, optimally, from the opportunities and suppress any threats. The development of trade agreement should expedite Indonesias readiness to face challenges. Indonesia has to have resource to anticipate and accommodate the needs for tacking down trade issues. In order to anticipate this trend, Indonesia, in this case Ministry of Trade plays a leading and important role. The Ministry of Trade should conduct studies through collecting and analyzing data. The utilization of internets will be very useful to support an activity. However, since the separation of the Ministry of Industry and Trade in to two ministries, the Ministry of Trade has been left behind in term of infrastructure facilities. The Ministry of Trade is lacking of personal computers, both the quantity and related software. The provision of PCs and proper software will be most useful for the Ministry in order to race with the dynamic of international trade. Based on these facts, the Ministry proposes to utilize the existing grants from the government in the form of provision personal computers (PCs) with complete and adequate attached software. The Ministry also would like propose Chinese language training for the officials in Directorate General for International Trade Cooperation to enhance communication skills. 7. Priority Employment, Investment, and Exports 8. Objectives a. To provide adequate database in trade and trade related issues b. To collect, compile and analyze data to be presented to the leader of the Ministry c. To support officials with proper information to conduct studies

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Code No: T-02-09000-0401-064323 d. To provide complete information to supervisors so that they can decide adequate trade policy e. To communicate in China language, at least to understand basic Chinese language 9. Activities a. Providing Personal Computers (PCs) and note-books b. China language training 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 0 0 0 0 0 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,000,000 3,000,000

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Code No: T-05-09000-0101-064325 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Capacity Building in Trade and Trade-Related Areas 36 months DKI Jakarta Ministry of Trade Secretariat General, Ministry of Trade

6. Background and Justification In the era of globalization, Ministry of Trade often faces many complicated issues either in the area of domestic or international trade. To tackle these issues, Ministry of Trade needs to be supported by highly qualified human resources. Unfortunately, the number of human resources, available in the Ministry of Trade, that the meet the qualification is still limited. This limitation is even worsened, as there are still inadequate facilities to support their duties. Human resources are assets of an organization. Highly qualified human resources will be benefited to the organization, especially when the organization is expanding. Given the consideration it is necessary to improve the capacity of human resources through education and training, especially in the area of metrology and laboratory testing, as these activities can help promote Indonesian export performance. Other reason explaining why qualified human resources in that area is needed to increasing number of measuring instruments which should be operated by adequate human resources. Looking at educational background of human resources that handle metrology, it is observed that they do not have a strong background in metrology field, even though their educational background is bachelor (S1) and post-graduate (S2) degree. Other difficulty is that many scholarship opportunities for pursuing post graduate degrees do not match with the institutions needs. It is expected that the capacity building improve the quality of human resources in the specific area of trade. Therefore, Ministry of Trade will be able to handle its duties more efficiently and effectively. 7. Priority Employment, Investment, and Export 8. Objectives a. To improve the capacity of human resources in Metrology and Legal Metrology System (LMS) b. To improve the effectiveness and efficiency of handling issues and problems in the trade sector that is expected to help increase the economic growth and society welfare, as stated in Medium Term Plan (RPJM).

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Code No: T-05-09000-0101-064325 The specific objectives are: a. To develop human resources in the area of metrology based on competency b. To improve laboratory facility and metrology testing c. To develop science and technology in the metrology testing d. To set join research in the area of metrology, between Directorate of Metrology and National Metrology Institute (NMI) in other developing countries e. To transfer technology 9. Activities a. Training b. Laboratory facilities c. Short course d. Internship e. Joint research f. Comparative study g. Improving in facility h. Institutional upgrading i. Improvement of equipments of laboratory examination of quality of goods j. Metrology equipment upgrading 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 113,000 0 0 0 113,000 1,613,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,613,000 1,613,000

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Code No: T-02-06500-0490-064533 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : CP Training for Strengthening of Export Promotion Organization : 36 months : DKI Jakarta : Ministry of Trade : National Agency for Export Development (NAFED), Ministry of Trade

6. Background and Justification The world economy, which is getting much more integrated, demands that each country improve its competitiveness in the global market. The role of an export promotion agency in supporting export development and competitiveness is quite prominent. However, export promotion agencies in developing countries were criticized for lacking strong leadership, being inadequately funded, hiring staff without a client orientation, and suffering from government involvement. This is because export promotion agencies have traditionally focused on off-shore activities, such as information gathering, trade fairs, and trade representation, thus often neglecting the importance of home-country supply conditions. NAFED has a main role in helping potential exporters to find markets for their products, as well as providing them with a better understanding of products demanded in different export markets. Therefore, NAFED should be responsive to the market needs, actively penetrate export markets, and be supportive to exporters. However, its roles should be improved and reoriented in order to increase its efficiency in supporting export development. JICA has provided a development study on Strengthening of Export Promotion Agency, which is now on-going. The study covers development of NAFED master plan, which will be the basis for NAFED to develop its organization, redirect its goal, and reorient its functions. However, transforming and improving an organization is not an easy task. NAFED needs qualified personnels to undertake the tasks and to achieve the new goals. Based on these needs, NAFED is planning to improve the capacity of its human resources for undertaking the development and transformation of NAFED by providing some courses and training for strengthening the roles of export promotion agency. These courses and training are also expected to improve human resources capability for implementing the NAFED master plan. 7. Priority Employment, Investment, and Export T - 322

Code No: T-02-06500-0490-064533 8. Objectives To provide some training courses for NAFEDs employees in the area of strengthening the roles of the Export Promotion Organization 9. Activities Training for Strengthening Export Promotion Organization a. Training courses on market intelligence, product development, and export promotion activity. b. Training courses on improving management efficiencies of export promotion organization. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Ministry of Transportation

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Education and Training Agency Code No: T-05-02200-1005-066329 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Set Up Aeronautical Information Service (AIS) Training 24 months Tangerang Municipality - Banten Ministry of Transportation Education and Training Agency, Ministry of Transportation

6. Background and Justification Since the International Civil Aviation Organization (ICAO) according to Document 8216 AIS Guidance Material For Asia Pasific 2001 had required aeronautical information services license and rating officer in the air traffic services safety audit for all ICAO contracting states, each national air traffic service authority are requested to fulfill license and rating officer servicing all of the needs of aeronautical information services in all airports in Indonesia. The Directorate General for Air Transportation (DGAT) as national air traffic service authority, on October 18th 2001 regulate that all aeronautical information service officers have to hold license and rating and join the AIS training Diploma before being checked in proficiency and performance skill for license and rating examination. In order to fulfill the need of AIS license officer in Indonesia, Indonesian Civil Aviation Institute (ICAI)/ Civil Aviation Training Center (CATC) has been progressing training Diploma for Aeronautical Information Service which is conducted in 3 years or 6 semesters. Supporting the needs of AIS training, ICAI/ CATC have to be established with the equipment which are able to manage all of AIS training program according to the standard and recommended practice of International Civil Aviation Organization (ICAO). Training Diploma for Aeronautical Information Service in ICAI/ CATC is conducted with old computer system called Aeronautical Mobile Switching Center Simulator. With this system, the ICAI/ CATC is able to produce only 20 - 25 AIS license officer per year so that it will not support the national program to fulfill the need of AIS license officer in Indonesia. The AIS Automation Simulator (AISA-S) represent a package supporter of air transport training that can be integrated with Radar Simulator. 7. Priority Education and Health 8. Objectives a. AISA-S used to study items of AIS, comprehensive process, and also strengthen various products of the AIS (NOTAM, AIREC, PIB, etc. by directly as condition of AIS Automation exist in field (airport).

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Code No: T-05-02200-1005-066329 b. To provide high quality training for future AIS officers using advanced aviation technology consistent with the demand of modern flight operation and the rapid growth of air transportation. c. To meet the demand for high quality AIS officers, who are trained to the higher standard using advanced training concepts to keep pace with development in aviation technology in to next century. d. To be able to simulate a realistic plan found in the real situation in the field of jobs including the contingency plan of services. 9. Activities Procurement (Set Up) and training of Equipment : a. AISA-S hardware, consist of : 1) FDO Simulator 2) AFTN-AMHS Simulator 3) ARO Simulator 4) NOTOF Simulator 5) Cartography Laboratory b. AISA-S software, consist of : 1) FDO Simulator 2) AFTN-AMHS Simulator 3) ARO Simulator 4) NOTOF Simulator 5) Cartography Laboratory

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 10,000,000 0 0 10,000,00 0 0 0 0 0 10,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 5,000,000 5,000,000 10,000,000

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Code No: T-03-02200-0408-066330 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Procurement of Security Training and Workshop for Aircraft Maintenance : 12 months : Tangerang Municipality - Banten : Ministry of Transportation : a. Education and Training Agency, Ministry of Transportation b. Tertiary Aviation School of Indonesia Curug, Ministry of Transportation

6. Background and Justification In response to the rapid development of aviation technology, the Indonesia Civil Aviation Institute (ICAI) Curug, as the only Aviation School of the government, should have good and reliable facilities to compete with the growing technology. Up to now, the ICAI is still expected to provide skilled aviation personnel, especially Pilots, Technicians and Air Traffic Controllers. Although the ICAI has obtained APSC (Approved Pilot School) and AMTO (Approved Maintenance Training Organization), it does not have sufficient and related training aids to support training and education. In addition, its main function to provide training for the aviation professionals, ICAI is expected to be actively involved in and contribute to the security and safety of flight operations. To operate the proposed facility, the ICAI already has a lot of capable and skilled human resources in aircraft maintenance as required by the ICAO. However, there is no suitable workshop & simulators to carry out those maintenance job. With the availability of that workshop and simulator, it is expected that the ICAI can further obtain the AMO .(Approved Maintenance Organization), which will help save government budget funding, especially in the area of aircraft maintenance. 7. Priority Infrastructure 8. Objectives To provide aircraft Simulator and Workshop to facilitate aviation training at Indonesia Civil Aviation Institute in Curug.

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Code No: T-03-02200-0408-066330 9. Activities a. Design and specification reqiurement b. Development c. Tender and procurement d. On factor training e. Final product delivery f. Warranty and maintenance 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 30,000,000 0 0 30,000,000 0 0 0 0 0 30,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 30,000,000 0 30,000,000

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National Search and Rescue (SAR) Agency Code No: T-05-02200-0302-066332 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Master Plan of the National SAR Agency (Basarnas) for the Development of SAR Human Resources : 24 months : DKI Jakarta : Ministry of Transportation : National Search and Rescue (SAR) Agency, Ministry of Transportation

6. Background and Justification Indonesias geographic position is very strategic, being between 2 (two) continents, namely Australia and Asia, and also between 2 (two) oceans, namely the Pacific Ocean and Indian Ocean. Such a position has a big effect on the dense flow of transportation and to the increased potential of marine and aircraft accidents The natural condition of the Eurasia Plaque, makes it a potential to become a disaster zone. The disaster might be in the forms of tectonic earthquakes, tsunamis, and active volcanic mountains. It can create water deluge, soil erosion and could even bring out the losses of life and assets. To anticipate possible disasters, the countrys alertness in terms of available Search and Rescue facilities and equipment needs to be enhanced. 7. Priority Education and Health 8. Objectives To develop Master Plan Basarnas for the Development of Human Resources of SAR 9. Activities a. b. c. d. e. Professionalism Post Building Increase The Quantity and Quality of SAR Personnel The System of SAR Course and Training The Pattern of SAR Human Resources Development Establishment of SAR Institute

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Code No: T-05-02200-0302-066332 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,125,000 0 2,125,000 375,000 0 0 0 375,000 2,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,500,000 2,500,000

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Directorate General for Land Transportations Code No: T-03-02200-0408-066333 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development of Weigthing Scale in Pantura (Northern Coast Area) to Support Performance Base Control : 36 months : Nothern Java : Ministry of Transportation : Directorate General for Land Transportations, Ministry of Transportation

6. Background and Justification a. Handling overloading that constrained good transportation b. Frictions have occurred in the decentralization era on the function of weight stations c. There are still deviations in the management of the policy on overloading d. Weak law enforcement on observation of weight stations that supervise potential overloading. 7. Priority Infrastructure 8. Objectives a. To reduce cost of maintenance b. To reduce illegal charges c. To reduc collision storey until 0 % 9. Activities a. Development of weight station (civil work and equipment) b. Development of Standard Operation Procedure (SOP) c. Weight Station Management and Operation. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,012,000 0 5,012,000 752,000 0 0 0 752,000 5,764,000 T- 333 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,764,000 5,764,000

Code No: T-03-02200-0408-066334 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Land Transport Development Plan : 36 months : DKI Jakarta : Ministry of Transportation : Directorate General for Land Transportations, Ministry of Transportation

6. Background and Justification Indonesia is the largest archipelago country in the world, which has area of 9.8 million square km (including sea) and has the population of the 5th largest in the world i.e. 215.25 million (2003). With this huge number of population, the number of trip produced also quite high. Based on OD survey conducted in 2001, the total number of passenger trip between regencies recorded at 3.8 billion passenger trips per year and 2.4 billion ton for freight trip per year using land transport modes. A similar situation also occurred in Freight Transport. The total number of freight trip between regency is 2.4 billion ton for freight trip per year using land transport modes. With high proportion number of trips using land transport modes (road, railways, ferry, river and lake transport) i.e. 99% for passenger and 97% for freight transport of total trips, land transportation plays a vital role in distributing people and goods. Therefore, it is necessary Land Transportation Sub-Sector has a comprehensive general plan for accommodating the huge number of demand at the present and in future. In order to anticipate and fulfilling the demand for better transportation and considering problems that the land transport sub-sector is now facing, it is very important to formulate a comprehensive general plan in central regional, and local government levels for harmonizing and synchronizing the Policy Framework and Action Program Implementation and the integration to other modes i.e. Sea and Air Transportation In addition, several studies have also been focused on Development on Land Transport Sub-Sector, such as Transport Sector Strategy Study, Land Transport Development Plan Phase I and Phase II, etc. However, due to the changes of economic, policy, environmental, technology, and assumption draw in previous studies, it is necessary to update the assumptions above. 7. Priority Infrastructure

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Code No: T-03-02200-0408-066334 8. Objectives Formulation of the above comprehensive plan that accommodates the Land Transport Development Plan (as a macro plan) which will consist of: Policy Framework on Land Transport Development General Plan by synchronizing with the Medium-Term Development Plan of Transportation Sector (RPJM). Policy Framework on Road Transportation, Railways, Ferry Transport, River and Lake Transport and Implementation Plan for each transport mode. The output of this project will be expected as follows: a. Sustainable Transport development for each transport modes (Road, Railways, Ferry, River and Lake). b. Quality of Services, Safety, Investment and Private Participation. c. Tariff/Fare Setting Policy and Renewal Plan for each transport mode. d. Regulation, Institutional Framework, and Capacity Building. e. Environmentally Friendly and Efficient Technology Policy. 9. Activities Phase I. a. Review current law and regulation and considering 4 transportation laws which are now being discussed and revised with parliament for revision. b. Review current policy frameworks on infrastructure development for National and Regional level. c. Review the current Master Plan, Blue Print, and Strategic Plan for related Institution, Ministries etc, that responsible in Land Transportation sub-sector. d. Review past and recent studies that focused on the Land Transport Sub-Sector Development Plan. e. Identifying the factor that will be perceived to be the constraint for the development of land transport sub-sector. f. Formulating a comprehensive general plan in central, regional, and local government level for harmonizing and synchronizing in Policy Framework (as macro plan) and will consist of : 1) Policy Framework on Land Transport Development General Plan with synchronizing to Mid Term Development Plan of Transportation Sector (RPJM). 2) Policy Framework on Road Transportation, Railways, Ferry Transport, River and Lake Transport and Implementation Plan for each transport mode. 3) Policy Framework on Safety Management for each land transport mode.

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Code No: T-03-02200-0408-066334 g. Formulating Implementing Plan for Short Term/Immediate Plan, Mid Term and Long Term Development Plan for the materialization of the above General Plan. h. Strategy and Program for Integrated Land Transport Development Plan. i. j. Project identifications and project screening for immediate, short term, mid term, and long term development plan. Feasibility Study for high priority for sub-project selected.

Phase 2 and Phase 3 The main task Phase 2 and Phase 3 are mainly focused on physical works. The implementation of Phase 2 and Phase 3 will be depends on the result of Phase 1. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 0 0 0 0 0 5,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,000,000 5,000,000

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Code No: T-03-02200-0408-066372 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Integrated Public Transportation Master Plan for the Bandung Metropolitan Area : 24 months : West Java : Ministry of Transportation : Directorate General for Land Transportation, Ministry of Transportation

6. Background and Justification a. Bandung is the Provincial capital of West Java, located on a highland 768 meters above the sea level. The population of the Bandung Metropolitan area is over 6.5 million and expected to reach 8.4 million in 2010. Due to the increased population and rapid motorization, transport problems have been serious. The construction of several ring roads and highways has not solved the problems. They have rather attracted more traffic to the city. b. Traffic congestion problem can be atributed to low road density in the metropolitan are; that is, road accounts for mere five percent of the total Bandung area. In addition, low level of public transportation services accelerated shifting to the private mode of transportation. c. To alleviate traffic congestion, promotion of the prublic transportation system is essential. The system will consist of a rail-based transport as the backbone mode with supplementary feeder systems. d. The purpose of the study is to establish an urban transportion policy and to formulate a public transportation master plan for the Bandung Metropolitan area targeting the year 2030. For materialization of the project and program proposed in the master plan, it requires integration with land use, development of appropriate funding schemes, institutional set-up in line with the funding schemes and public involvement. 7. Priority Infrastructure 8. Objectives a. To establish of urban transportation policy b. To formulate public transportation master plan c. To prepare funding schemes for public transportation system development d. To set-up institutional and to specify the role of each level of government.

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Code No: T-03-02200-0408-066372 9. Activity Development Study 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,000,000 0 5,000,000 0 0 0 0 0 5,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,000,000 5,000,000

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Directorate General for Sea Transportations Code No: T-03-02200-0408-066342 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Long Term Expert for Strengthening Maritime Safety and Security Especially for Anti Piracy and Anti Maritime Terrorism : 24 months : DKI Jakarta : Ministry of Transportation : Directorate General for Sea Transportations , Ministry of Transportation

6. Background and Justification In past few years, the issues of piracy and armed robbery against ships has become serious and dangerous. In 2005, the total number of pirate attacks against ships in Indonesian territorial waters generally has decreased, particularly in the Strait of Malacca, where only 8 cases were officially reported. However the Malacca Strait has been placed in the list of war risk area by Lloyd insurance, resulting in higher insurance premium for ships transiting the strait. Although some countries concerned have been endeavoring to combat piracy, armed robbery and terrorism, further concrete action is strongly needed to prevent them. Considering the importance of the problem, DGST needs proffesional assistance from experts in the field of maritime safety and security system, especially for anti piracy and anti terrorism. 7. Priority Infrastructure 8. Objectives a. To ensure maritime security especially in the Strait of Malacca. b. To reduce the number of pirate attack against ships in Indonesia territorial waters. c. To provide a system to prevent piracy, armed robbery and maritime terrorism. d. To provide equipments and facilities of 11 public ports facilities to comply International Ships and Port Facility Security (ISPS) Code. 9. Activities Procurement of a Long Term Expert on Strengthening Maritime Safety and Security Especially for Anti Piracy and Anti Maritime Terrorism. He or She will advocate to GOI to develop activities that can reduce Piracy and Terrorism activities.

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Code No: T-03-02200-0408-066342 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,200,000 0 5,200,000 0 0 0 0 0 5,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,200,000 5,200,000

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Code No: T-03-02200-0408-066343 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Master Plan for Strategic Development of Ports at West Coast of Sumatra : 19 months : DKI Jakarta : Ministry of Transportation : Directorate General for Sea Transportations , Ministry of Transportation

6. Background and Justification The West Coast of Sumatera comprising West Sumatra, Bengkulu, South Sumatera, and Lampung Provinces have been considerable a potential development for the national economy. Development of the ports on the West coast of Sumatra is important to make them relatively accessible for cargo flows especially to/from western countries from/to Indonesia. 7. Priority Infrastructure 8. Objectives a. To establish the strategy for development of ports on the west coast of Sumatra, and also establish the master plan for development of these ports. b. To establish a strategy for development of the ports based on the analysis for regional, national and international sea transport and trade structure, and sustainable development. c. To analyze the feasibility for the target year of 2010 - 2020 for the priority ports including project implementing plan and funding plan. 9. Activities Procurement of consultants to conduct a study, including field survey, to make a master plan for the port development strategy. Along the west coast of Sumatera, especially West Sumatera, Bengkulu, South Sumatera, and Lampung.

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Code No: T-03-02200-0408-066343 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,200,000 0 5,200,000 0 0 0 0 0 5,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,200,000 5,200,000

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Code No: T-03-02200-0408-066344 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agency : Port Security System Improvement Plan : 24 months : Sumatera, Kalimantan, Bali and Sulawesi Island : Ministry of Transportation : Directorate General for Sea Transportations, Ministry of Transportation

6. Background and Justification After the series of terrorist attacks in the US (9.11.2001), the IMO ( International Maritime Organization) has addopted the Amendment to the Annex of the SOLAS (Safe of Life at Sea) Convention in 2002. Strengthening security measures for international ships and port facilities is currently an important matter for each country. In Indonesia, several serious acts of terrorism have occured recently, for example, incidents at the Australian Embassy on 9/Sep/2004, the Marriot Hotel on 3/Aug/2003, and in Bali on 12/Oct/2002 and 1/Oct/2005. Accordingly, the Indonesian government recognized the need for enhancing security measures of international trade ports in Indonesia. Indonesia has been making port facility security plans, constructing facilities, installing equipment for security, training security officers and so on since adopting the SOLAS Convention. However, the implementation of the International Ships and Port Facility Security (ISPS) Code is still insufficient in most international trade ports due to the shortage of facilities and equipment for security, lack of funds, and the insufficient education and training of security officers. In order to ensure the sound development of the economy and society throughout Indonesia, it is necessary to intensively implement the port security measures at the 9 main Indonesian strategic ports in the 4 major islands of Sumatera, Kalimantan, Bali and Sulawesi. 7. Priority Infrastructure 8. Objectives a. To accelerate the implementation of port security measures based on the port security facility plans. b. To improve the Indonesian port security level. c. To transfer the technology on port security to Indonesian officers.

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Code No: T-03-02200-0408-066344 9. Activities a. Procurement of consultans that will arrange a plan which will improve port security. b. Consultant activities will include survey, Master Plan 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,200,000 0 5,200,000 0 0 0 0 0 5,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,200,000 5,200,000

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Code No: T-03-02200-0408-066345 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Standardization for Development of Environment Protective System in Ports in Indonesia : 20 months : DKI Jakarta : Ministry of Transportation : Directorate General for Sea Transportations, Ministry of Transportation

6. Background and Justification Ports have traditionally been regarded as insanitary place. Nowadays, such insanitary conditions cannot be accepted from the socio-economics and natural environment viewpoints. Government of Indonesia Regulation No. 69/2001 obliges the Port Administrator to provide the pollution protective facilities in the port in relation with operation of the port. The same regulation prescribes the master plan of the regional and local ports shall be decided by local government subject to the approval of Minister of Communications, as part of the regional autonomy. Based on such situation, the environment protective system resulted by this study has to be socialized to the local government. 7. Priority Infrastructure 8. Objectives a. To establish a standard for developing environment protective system applicable for all ports in Indonesia. b. To accelerate provision of the system in ports. 9. Activities Procurement of consultants to conduct a study, to standarize a development system that will protect environment in ports in Indonesia

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Code No: T-03-02200-0408-066345 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,200,000 0 5,200,000 0 0 0 0 0 5,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,200,000 5,200,000

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Code No: T-03-02200-0302-066346 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Maritime Safety Plan Concerning Law Enforcement, Oil Spill Combating, and Search and Rescue : 24 months : National wide : Ministry of Transportation : Directorate General for Sea Transportations, Ministry of Transportation

6. Background and Justification The Directorate General for Sea and Transportation (DGST) has been promoting the establishment of the Integrated Maritime Safety System based on the SAR Master Plan in 1988, which is the plan until 2005. However, the plan has not been implemented on schedule due to the crisis in Indonesia and the condition of Indonesian budget. While 2005 will be the time to end the plan, DGST needs to revise the plan and establish a new master plan based on actual condition of strategic circumstances. 7. Priority Infrastructure 8. Objectives a. To make a new master plan in the field of : maritime search and rescue, maritime trafficf safety, maritime disaster prevention and marine environment protection, maritime security and law enforcement, ships and aircraft engaging in maritime safety and security, aids to navigation services. b. To provide equipment and facilities in line with the master plan. 9. Activities Procurement of Consultants to conduct The Study Maritime Safety Plan Concerning Law Enforcement, Oil Spill Combating and Search and Rescue. The consultant activities will consist of survey, preliminary report, interim report, final report.

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Code No: T-03-02200-0302-066346 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,200,000 0 5,200,000 0 0 0 0 0 5,200,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,200,000 5,200,000

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Code No: T-03-02200-0408-066347 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Long Term Expert for Upgrading Port State Control : 24 months : DKI Jakarta : Ministry of Transportation : Directorate General for Sea Transportations, Ministry of Transportation

6. Background and Justification Port State Control (PSC) is the inspection of ships in national ports to verify that the conduct on ship and its equipment comply with the requirements of international regulations. RI has joined the Tokyo MOU in 1993. But the number of inspection and the number of security related detention by PSC are extremely small, which means that Indonesian PSC does not function because of shortage of inspectors and insufficient capabillity of inspectors. At this moment, there are about 125 PSC officers allocated at 45 major ports, but in order to fulfill the required inspection another 100 PSC inspectors are necessary to grow. And also it is strongly requested to upgrade the incumbent inspectors to comply with the international regulations. 7. Priority Infrastructure 8. Objectives a. To eradicate sub-standard ships. b. To improve the safety and security of ships in complying with SOLAS, MARPOL, ILO Conventions, which c. Leads to decrease in marine disasters. d. To upgrade the knowledge of PSC Officers 9. Activities Procurement of a Long Term Expert for Upgrading of Port State Control. The expert will advise the GOI how to upgrade Port State Control.

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Code No: T-03-02200-0408-066347 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,200,000 0 5,200,000 0 0 0 0 0 5,200,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 5,200,000 5,200,000

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Directorate General for Air Transportations Code No: T-03-02200-0408-066354 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Project for Strengthening Particular Airports in Overcoming Natural Disasters : 24 months : National wide : Ministry of Transportation : Directorate General for Air Transportations, Ministry of Transportation

6. Background and Justification a. Save and rescue activities of transport are significant important after the strong earthquakes and gigantic tsunami in Aceh and North Sumatera Provinces. b. Needs of concepts for developing airports to be able to facilitate save and rescue activities after natural disaster and to withstand earthquakes. c. Realization of economic and communication potential will be needed among local government, which will contribute to stabilize the local economy. 7. Priority Infrastructure 8. Objectives To develop concepts for developing airports to be able to facilitate save and rescue activities after natural disasters and to withstand earthquakes 9. Activities a. Assessment of Indonesia airports b. Development of local airports to be able to facilitate save and rescue activities c. Examine the management, quality assurance and construction improvement. d. Workshop, seminar and Counterpart Training

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Code No: T-03-02200-0408-066354 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,400,000 0 2,400,000 0 0 0 0 0 2,400,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,400,000 2,400,000

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Code No: T-03-02200-0408-066355 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Project for Introduction of Environmental Friendly Airport (Eco-Airport) : 18 months : National wide : Ministry of Transportation : Directorate General for Air Transportations, Ministry of Transportation

6. Background and Justification a. There has been an increase in air traffic demand in accordance with economic growth and deregulation of air transport in Indonesia b. Airports are fundamental infrastructure of the overall air transportation system and there are still a lot of airport that have the need for their facilities tobe rebuilt ot to be expanded to cope with growth of air passengers and cargo c. Airports should be harmonized with clean environment, thus, environmental quality control systems such as waste treatment, disposal management and other environmental friendly measures should be given high prioroty in the airport engineering policy. d. Since 2005, Indoneisa has established the ASEAN - Japan Airport Study Project to enhance policies and measures for improvement of environmental quality of airports in ASEAN - Japan Region. 7. Priority Infrastructure 8. Objectives To clean Indonesian Eco Airport Policy and to prepare DGAT's Eco - airport guideline and /or direction 9. Activities a. Environmental assessment of Indonesias airports b. Eco-Airport policy to be developed c. Development and assessment of management system, quality assurance d. Workshops, seminars and counterpart training

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Code No: T-03-02200-0408-066355 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,400,000 0 2,400,000 0 0 0 0 0 2,400,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,400,000 2,400,000

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Code No: T-03-02200-0408-066529 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Training Program for Aircraft Accident Investigators : 36 months : DKI Jakarta : Ministry of Transportation : National Transports Safety Committee (NTSC)

6. Background and Justification In Indonesia, as recorded in the NTSC database, the total number of aircraft accidents has significantly increased during the last 5 years. Aircraft accidents/incidents investigation in accordance with ICAO Annex 13 International Standard is essential to prevent the recurrence of similar cases. Training of aircraft accidents/incidents investigators has been more important than before because aircraft design and performance have improved and their operating systems have developed rapidly, thus aircraft accident investigation for those newly designed aircraft becomes more difficult and more complex with high technology being adopted into the design philosophy, manufacturing process, and aircraft equiptment. Especially the analysis of Digital Flight Data Recover/Cockpit Voice Recorder is the most important skill for accident investigation because the result from these analysis would be reflected in the aircraft accident reports. 7. Priority Infrastructure 8. Objectives a. To improve investigation skill of aircraft accident investigators improves b. To be more fulfilled aircraft accident investigation reports c. To minimize recurrence of similar aircraft accidents 9. Activities a. c. Dispatch short terms experts on aircraft accident investigation Counter part training to aircraft accident investigators b. Workshop or seminar for aircraft accident investigation technique

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Code No: T-03-02200-0408-066529 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 0 0 0 0 0 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,000,000 3,000,000

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Directorate General for Railways Code No: T-03-02200-0408-066367 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Detail Engineering Design of Railway Coal Transportation Kapuas - Mahakam : 12 months : East Kalimantan and Central Kalimantan : Ministry of Transportation : Directorate General for Railways, Ministry of Transportation

6. Background and Justification Kalimantan, especially in the south-east of the island, has higher quality coal resources in Indonesia with relatively higher heat value and low ash and sulphur contents. Out of these 9,69 billion tons of coal reserves in Kalimantan, 4,37 billion tons or 45.1% are classified as medium class heat value (5,100-6,100 kcallkg,adb), and 3,13 billion tons or 32.3% are classified as high or very high class heat values (6,100 and up kcallkg,adb).This is simply because those mines are financially viable in terms of coal transportation cost. The most difficult issue is how to make future mines (mines under planning) financially viable even with high transportation cost. Because most of future mines are located far away from either river banks or sea coasts, their inland transportation is longer and business viability will hardly be ensured. To overcome the long in-land transportation problem for future mines, an integrated inland transportation system needs to be developed. As a result, at least two measures are needed in Kalimantan, namely to increase the coal loading capacity and to develop new in-land transportation for coal. Against these needs, the various studies that were conducted regarding the coal transport railway system had proposed a total of six railway lines. In order to obtain an optimized network in the initial development of railway network in Kalimantan, it is advisable to develop a Trans Kapuas - Mahakam Line, which is a consolidated network of the Mahakam Line (East Kalimantan) and part of area to the north of the Kapuas Line (Central Kalimantan). 7. Priority Infrastructure 8. Objectives a. To develop the railway as the main transportation mode for transporting coal from the coal mines to either river banks or or sea coast b. To reduce the trasnportation cost by using the most effective and efficient system

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Code No: T-03-02200-0408-066367 c. To reduce or eliminate road damage which have been caused by heavy trucks operated by mining companies. d. To reduce the number of road accidents due to the road condition. The existing road transportation is generally unpaved and treated by laterite, which is quite muddy and slippery and very hard for trucks operating when it is raining. 9. Activities This line has 394 km length, and proposed to be constructed in 2 phase: a. Phase I : Murung Raya to Kalipapak (160 km), which consist of rails, bridges and workshop. b. Phase II: Kalipapak to Balikpapan (234 km), which consist of rails, bridges and workshop. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 12,000,000 0 12,000,000 0 0 0 0 0 12,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 6,000,000 6,000,000 12,000,000

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Code No: T-03-02200-0408-066368 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Improvement of the Railway System in the East Jakarta Industrial Region : 8 months : DKI Jakarta : Ministry of Transportation : Directorate General for Railways, Ministry of Transportation

6. Background and Justification The East Jakarta Industrial area is one of the major industrial complexes in Indonesia that contribute around 15% of the total exports (excluding oil and petrochemical products) of the country. However, the concern is that the insufficient infrastructures in trasnportation and physical distribution have reduced the country's competitiveness and have particularly become one of the barriers to new foreign investments. Development and improvement of the transportation related infrastructures is demanded in the East Jakarta Industrial area in order to increase the competitiveness of Indonesia's industries especially for export. It seems that a new railway branch is the best-fitting solution to meet such demand. The transportation and/or phsycal distribution only by car and truck may rapidly reach its limitation, even though a bunch of new roads are realized. The most appropriate concept to apply is the transportation oriented shared mode bertween railway and road transportation based on the existing road and railway networks in this industrial area. Because the Project can bring huge profit to the private sector, it is expected to be implemented on a Public-Private Partnership basis. 7. Priority Infrastructure 8. Objectives Construction of new railway branch connecting the Cibitung station area and the Klari station are of the existing railway (PT.KAI, North Main Line connecting Jakarta and Surabaya). The estimated length is around 40Km. The railway branch will cross by flyovers twice with the Jakarta - Cikampek toll road and run in pararell through the large industrial parks and complexes such MM2100, ABABEKA, EJIP, KIIC, KIM, SCI, etc. as well as regional development towns like Delta Mas and LIPPO Cikarang. Together with the railway branch, improvement of the non-railway transportation and distribution is to be considered to make the shared mode concept possible in the areas. It is of paramount importance to yield the multiplier effect of the Project. That is, strengthening of international competitiveness in the trading business and acceleration and encouragement of foreign direct investments into the country.

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Code No: T-03-02200-0408-066368 9. Activities a. Technical assistance (expert, training, etc.) b. Development Study c. Grant financial aid d. Others 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 0 0 0 0 0 2,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,500,000 2,500,000

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Code No: T-03-02200-0408-066369 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Improvement of Railway Safety Management (Phase 2) : 12 months : DKI Jakarta : Ministry of Transportation : Directorate General for Railways, Ministry of Transportation

6. Background and Justification The present PT. KAI was established as a single railway company without own infrastructure in 1998 for providing more effective and efficient operation services in Indonesia. However, many serious accidents have occurred in succession in 1999. In that year 196 accidents occurred, such as the head-on collision when many lifes were lost. In consideration of these serial accidents, the Directorate General for Land Transportation (DGLT) requested JICA to dispatch experts to advise on improvement of railway safety management on 2000. This is first phase of this project, which has progressed for 3 years until December 2005. In the period, various kinds of safety rules and countermeasures relative to safety operation and rolling stock field have been advise by the JICA experts so far. Meanwhile, a new organization, namely the Directorate General for Railways (DGR) was established from the old DGLT in August 2004 and the Directorate of Safety and Rolling Stock that must oversee the administrative aspects of the railways We are going to enter the second stage of this progfram. However, the surrounding areas of the of railways, especially in the Jabotabek area, are at the point of changing on a massive scale due to the double tracking of the Bekasi line, double tracking of the Serpong line, that are on top of the MRT (Mass Rapid Transit) project. Therefore, safety matters should be improved or developed in the years ahead not only point by point technically but also systematically and generally even under construction or planning of the new networks. Furthermore, knowledge and capability about administration of railways to be established in the future should be transferred and accumulated in the new DGR organization. So it is required to have experts to advise on the management of railways from the safety view point. 7. Priority Infrastructure

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Code No: T-03-02200-0408-066369 8. Objectives a. To improve the safety management of administrator directing railway operator b. To stengthen the implementation system of administrator arranging the facilities of safety. c. To promote the countermeasure againts accident and rule needed for safety. d. To establish the safety system 9. Activities a. Technical assistance (expert, training, etc.) b. Development study c. Grant financial d. Others 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 0 0 0 0 0 1,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,500,000 1,500,000

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Code No: T-03-02200-0408-066370 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Capacity Building of the Jabotabek Railway : 24 months : DKI Jakarta : Ministry of Transportation : Directorate General for Ralways, Ministry Transportation

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6. Background and Justification Jakarta is the capital of the Republic of Indonesia. The metropolitan area of Greater Jakarta includes the surrounding cities of Bogor, Tangerang, Depok and Bekasi, altogether making up the Jabotabek area with around 21 million of inhabitants. Many efforts have been undertaken to improve the Jakarta Transport Systems. One of the transport systems in the Jabotabek area that has been improved is the Jabotabek Railways System. As a result of the improvements of the railway system of the Jabotabek area up to now a large development progress especially on the field of infrastructure and train operation concerned has been recently appearing. However, in order to archieve sustainable improvement, it is necessary to support the planned investments by strengthening the institutional framework and stabilization of financial conditions. The General Meeting of Shareholders of PT. KAI in 2003 has decided that Jabotabek Railways as a Strategic Business Unit (SBU) of PT. KAI should strengthen its institutional framework and consolidate its financial conditions by spinning-off the Jabotabek Railways from PT. KAI. The strengthened institutional framework and consolidated financial condition have been done through the GermanIndonesian Technical Cooperation and funded by a Grant from the KfW through the Study Expert Fund (SEF). This study has been finalized in February 2004 by the Hamburg Consult. The recommendations that have elaborated are twofold: a. Organizational Restructuring : Jabotabek New Entity with two steps i.e. "Daughter" Company first and then after becoming a healthy Company will be fully separated and become a "Sister" Company. b. Efficiency Improvements : Reduce cost and increase revenues. The spinning-off the Jabotabek Railways is scheduled to be implemented by July 2005. Therefore, in order that the Jabotabek Railways becomes a New Entity that is empowered and can independently undertake new responsibilities, it is necessary to have technical assistance for capacity building of the Jabotabek Railway. This assistance not only aimed for Jabotabek New Entity but also for Directorate General for Railways as policy maker and overseeing agency of the Railway Sector.

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Code No: T-03-02200-0408-066370 7. Priority Infrastructure 8. Objectives a. Developing capability of Jabotabek Railways for strengthening the institutional framework and stabilization of conditions of Jabotabek New Entity b. Developing capability of DGR Staff for policy maker and supervising of Railways Sector c. To demonstrate requirement of the implementation of Jabotabek Railways as new entity, specially for organizational reform, designing business plan, management and financing the Jabotabek New Entity. d. Human Resources requirement analysis for the implementation if Jabotabek New Entity whether for Jabotabek railway and Directorate General for Railways. e. Developing standard training for Jabotabek New Entity in order to improve abilities of Jabotabek New Entity to become a healthy company. f. Developing standard training for DGR to improve the abilities and capabilities for supervising Jabotabek new enity. 9. Activities a. Consulting service b. Training 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 6,000,000 0 0 6,000,000 0 0 0 0 0 6,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,000,000 6,000,000

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Code No: T-03-02200-0408-066371 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Feasibility Study on the Development of Jogja-Solo Urban Rail Services : 8 months : Yogya- Solo (Yogyakarta and Central Java) : Ministry of Transportation : Directorate General for Railways, Ministry of Transportation

6. Background and Justification The railway line in the Yogya - Solo corridor has already been completely in doubletracks as of 2005, the level of line utilisation has actually increased, but it has not significantly grown as expected at the beginning. It is easilly recognised that the lack of development of adequate intermodal transport links within each of the connected urban areas of the ciries in the corridor (and also other ones linking cetres of activities within each heart of the cities could have been one of the main causes of such an unfortunate situation. Realising this development gap, one initial effort to improve it is to provide a soundly based feasibility study on the urban-rail transport development in both of the cities, i.e. Yogya and Solo. 7. Priority Infrastructure 8. Objectives a. To provide a more sustainable alternative of public-transport solution between Yogja and Solo urban areas and within each of the city centres, i.e. the more economically efficient, socially accepted, ecologically/environmentally friendly ones. b. To provide the people of both cities with a better accessibility/connectivity from or to each of the associated intercity rail services currently available or any of the newly developed ones in each of the citiesrisis or somewhere between the two (including the airport link under development). 9. Activities a. Review the literatures and reports of any prior relevant studies conducted by other consultants or institutions, in the past or in progress. This shall not only cover transportation studies, but also regional/urban development, socio-economic, demographic and cultural/heritage conservation studies, environmental impact assessments, etc. which are relevant.

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Code No: T-03-02200-0408-066371 b. Field surveys/investigations and interviews for technical as well as non-technical data collecting, followed by setting up of the planning criteria and operational/design parameters, as to support the planning process and needed analysis. c. Prepare alternative plans and basic designs of any additional elements of the railways system, including but not limited to (intermodal) terminals, stations/buildings, railways tracks, signaling and telecommunication systems, access roads and other necessary structure and facilities/installations, completed with each of the associated (typical) design drawings. d. Define the construction/installation project scope, cost estimates and implementation schedule and stages, and propose alternative financing schemes for the investments as well as operation/maintenance. e. Conduct the necessary financial appraisal as well as socio-economic benefit cost analyst of the proposed investment project and formulate the recommendations w.r.t. the most feasible investment opinions and/or financing schemes. f. Transfer of knowledge to the local consultants and counterpart team(s)

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Ministry of Industry

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Code No: T-05-01900-1006-064378 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Building New Campus for the Academy for Leather Technology : 24 months : DI Yogyakarta : Ministry of Industry : Academy for Leather Technology, Ministry of Industry

6. Background and Justification The main task and function of Akademi Teknologi Kulit (ATK) as the only high education in the field of leather and leather product technology is producing highly qualified manpower in the field of leather and leather product technology. However, because of the location that is relatively isolated (there is no public transportation) and the lack of promotion since it was moved to the existing location there is decreasing of student enrolment. In 2004 ATK has became a member of Indonesian-German (IGI) whose one of the main goals in supporting the education institution to produce competitive manpower. To conduct the IGI program, ATK has already made a business plan. One of the activities discussed in the business plan is developing production unit, one type of the production unit is a mini plan for footwear. Furthermore, ATK has built some workshops prepared for equipments from IGI. Unfortunately there was built on an ex paddy field which were not dried properly. This condition hinders the ATK to function properly, including the implementation of business plan in line with the IGI program. he government has planned to rebuild the ATK, however due to the budget procedures, the program can not be carried out this year. 7. Priority Education and Health 8. Objectives a. To build new campus at new location that is accessible and marketable in order to provide a place of study that is more comfortable and suitable b. To increase student enrollment c. To enlarge the network among stake holders d. To generate economic activity and income of the surrounding communities, which also means helping to decrease poverty

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Code No: T-05-01900-1006-064378 9. Activities a. Planning and preparation b. Acquiring a new location c. Constructing the building on the acquired location d. Acquiring and installing new office furniture and equipments 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 0 0 300,000 0 0 300,000 2,300,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,300,000 2,300,000

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Code No: T-02-01900-0407-064379 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Project on Supporting Metals and Machinery Industries Development : 24 months : West Java : Ministry of Industry : Metal Industries Development Centre, Ministry of Industry

6. Background and Justification Most of the Indonesia metal and machinery industries are small and medium scale industries and their technical capabilities are of limited quality and their production quality is low. These conditions have made them unable fulfill the need of the manufacture Industries, so that the demand of metals and machinery must be imported. In order improve the technical capability, it is necessary to provide support through development of engineering design, material technology engineering process and quality technology. 7. Priority Employment, Investment, and Export 8. Objectives To improve technical service to metal and machinery industries extended by Metal Industries Development Centre (MIDC) 9. Activities a. Preparation and planning activities b. Product development and implement metals product c. Technical dissemination and technical information services d. Monitoring and evaluation the activities. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,000,000 0 6,000,000 200,000 0 0 0 200,000 6,200,000 T- 371 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,200,000 6,200,000

Code No: T-02-01900-0407-064380 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Food Packaging and Preservation 24 months DKI Jakarta Ministry of Industry Center for Chemical and Packaging, Ministry of Industry

6. Background and Justification Safe food supplies, both for local consumption and to enhance competition international market, have become the major requirements in food safety system. Some countries have implemented special requirement for food especially food imported as Bio terrorist Act (USA) and White paper (UK) etc. Preservation and packaging technology is an important factor for which influence the safety product. Packaging is developed rapidly both its material and their technology. In order to follow the development of packaging technology and to serve industrial society, human resources and to supporting facilities of Centre for Chemical and Packaging (CCP) need to improved. CCP as technical services unit under the Ministry of Industry has such duties, one of them is to help industries especially small and medium scale industries (SME) in solving their problem. The main problem facing by SME are the lack of knowledge and high competition in global market. By the improving of the CCPs staffs and facilities, it is expected that the problems facing by the SME can be solved. 7. Priority Employment, Investment, and Export 8. Objectives a. To improve CCPs capability in term of development its human resources completed wit suitable equipment facilities. b. To improve technical services capability for chemical and packaging industy includes production process, packaging and preservation. c. To improv technological capability of chemical and packaging, especially in packaging and preservation aspects to produce good quality and marketable products to fulfill market requirments. 9. Activities a. Human resources development through overseas twining program (course and on the-job training) for CCPstaffs in field of food packaging and preservation includes design of canning and instrumental analysis for food packaging material and its effects on foodstuff. T - 372

Code No: T-02-01900-0407-064380 b. Equipmet procurement 1) Climatic Cabinet for Accelerate Shelf Life Test (ASLT) 2) Can analysis instruments for the inner liner, migration of its component(s) 3) Design of can 4) Equipment for R&D canning process 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,440,000 0 1,440,000 160,000 0 0 0 160,000 1,600,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,600,000 1,600,000

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Code No: T-02-01900-0407-065381 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development Center for Metal Casting Technology of High Grade Materials in Indonesia : 24 months : West Java : Ministry of Industry : Metal Industris Development Center, Ministry of Industry

6. Background and Justification The technical capability of the metal casting technology for high grade materials in Indonesia is low, resulting in the most (over 90 percent) of the high grade material casting product having to be imported. In view of this condition we need to develop the technical capability in the field metal casting for high grade material. 7. Priority Employment, Investment, and Export 8. Objectives The goal of the project is foundry industries will be able to provide domestic assembly with high material casting product to meet the their quality material anad properties. 9. Activities a. Preparation and planing activities b. Implementation trial prototyping casting product c. Technical dissemination and information services d. Monitoring and evaluation the activities 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,048,000 0 2,048,000 250,000 0 0 0 250,000 2,298,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,298,000 2,298,000

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Code No: T-02-01900-0407-064382 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Development of Leather Industry : 12 months : DI Yogyakarta : Ministry of Industry : Ministry of Industry

6. Background and Justification Leather footwear market in Indonesia is promising, and the local producers consist of home, small and medium, as well as large footwear industries. Footwear industries also absorb many workers and will be able to generate foreign exchange revenue to support national export. The increasing demand of leather footwear for local market sign seems to be prospective. Export target for leather footwear industry in the above period is US$ 1.8 billion. To reach for leather footwear industry export target, there are so many needs to be solved such as man power capability, production technology, design, quality of product and marketing accessibility. The structure of the leather footwear industry is still weak due to some supporting and main component still to be imported. In addition, the price and design cannot compete in global market as well. Realizing its significance in future, thus, establishing Indonesian Footwear Service Center (IFSC) is important, as a promotion means in developing leather industries in Indonesia. The project aims to thrust the development of SMEs of the leather footwear sub sector, which has good perspectives of growths in the national and international markets, through the setting up of technical specialized services. The main physical and nonphysical result of the project are expected to be following: 1) a service center for the footwear manufacture industry established and function, 2) human resources of the footwear industry trained, 3) knowledge and expertise in design, production and marketing, transferred, and 4) technology and information provided. 7. Priority Employment, Investment, and Export 8. Objective The projects objective is to establish IFSC which shall supply capacity building, carrying out the following activities as follows: 1) training and education, 2) testing, quality control and certification, 3) technology transfer and technical assistant, 4) design improvement, and 5) research and development.

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Code No: T-02-01900-0407-064382 9. Activities a. Establishment of the Indonesian Footwear Service Center (IFSC) and appoint management b. Training 50 persons (IFSCs staff and worker of SMEs leather footwear) in Italy and in Indonesia c. Provide suitable facilities for IFSC and fit out plant and all necessary equipment, d. Provide technical assistance e. Provide services, such as testing, quality control, certification, design improvement, economic planning and marketing 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 4,460,000 2,690,000 0 7,150,000 1,495,000 0 0 0 1,495,000 8,645,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 8,645,000 8,645,000

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Code No: T-02-01900-0407-064383 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Clean Productivity and Environmental Management for Pulp and Paper Industry : 24 months : East Java, Banten, Central Java : Ministry of Industry : Ministry of Industry

6. Background and Justification Paper manufacturing factories have been generating a huge amount of sludge and solid waste, most of them have been dumped or land filled. The problem of the pulp and paper industry in the processing of paper sludge and solid waste, is the paper sludge incineration facility with fluidized bed incinerator and waste heat boiler that need to be enhanced so as to meet satisfying conditions. 7. Priority Employment, Investment, and Export 8. Objectives To enhance the capability of the pulp and paper industry workers in clean productivity and environmental management. 9. Activities a. Preparing feasibility study for the project assistance within clean productivity and environment management. b. Providing technical assistant to solve the problem. c. Technical cooperation for grant waste processing equipment. d. Providing training for company and government employees in and outside of Indonesia. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 70,000 0 0 0 70,000 1,070,000 T- 377 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,070,000 1,070,000

Code No: T-02-01900-0407-064384 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening of the Center for Material and Technical Product on Consumer Electronics Quality Assurance : 36 months : DKI Jakarta : Ministry of Industry : Centre for Material and Technical Product (B4T), Ministry of Industry

6. Background and Justification Consumer electronics product has a tight relation with daily lives. In Indonesia the demands are fulfilled by internal production and imports which points to a wide variety standard. Electronics products which internally produced in Indonesia have also enter the international markets and must meet a certain quality standard including the safety factor. Currently, there is no official agency which handles the quality assurance of consumer electronics product in Indonesia. Centre for Material and Technical Product (B4T) has been doing part of the quality assurance testing. B4T need be strengthened quality assurance of consumer electronics product according to international standard such as ISO, IEC, or CISPR. 7. Priority Employment, Investment, and Export 8. Objectives To upgrade B4T laboratory capabilities in order to give quality assurance for consumer electronics product especially in safety aspect and performance. 9. Activities a. Preparation of detailed action plan. b. Training for local experts and local technicians. c. Procurement of laboratory equipment and testing standard book. d. Procurement of expertise e. Renovation of building f. Set up laboratory g. Preparation of test methods h. Accreditation of the National Committee of Accreditation i. Twinning arrangement j. Proficiensy testing of electronics product T - 378

Code No: T-02-01900-0407-064384 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,833,000 0 1,833,000 0 0 0 0 0 1,833,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,833,000 1,833,000

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Code No: T-02-01900-0407-064385 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Assesment of Indonesia Shipbuilding Industry : 6 months : National wide : Ministry of Industry : Ministry of Industry

6. Background and Justification Indonesia is the largest archipelago in the world that straddles the equator, comprising over 17,000 islands scattered from west to east and from north to south. With such vast number of islands, sea transportation becomes one of the important means in the country. Indonesia has a number of big and small shipbuilding (non-traditional) industries. They are located in the main City, in Jakarta, Surabaya, Padang, Makassar, to mention some, although some are located in smaller city, such as Batam. The industries have different capability and technology capacity. The industries will need further development in anticipation of future development of the Indonesian economy and the increasing need for sea transportation. Assessment of the current condition of the industries and identifying the necessary improvement requirements for their future development. Assessing the design capability of the industry will also be included in this project. 7. Priorities a. Employment, Investment, and Export b. Infrastructure 8. Objectives a. To assess the current condition of Indonesia shipbuilding industries, and their maintenance and shipbuilding capability throughout the country. b. To assess the current: component supply chain and manufacturing capability. c. To study the possibility of establishing Indonesia Ship Design Center. 9. Activities The scope of activity is assessing the shipbuilding industries by visiting the industries, government agencies, and other related industries in Indonesia.

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Code No: T-02-01900-0407-064385 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 0 0 0 0 0 1,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,500,000 1,500,000

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Code No: T-02-01900-0407-064386 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Development of Ramie Processing in Indonesia : 24 months : Bandung, West Java : Ministry of Industry : Ministry of Industry

6. Background and Justification The textile industries in Indonesia were growing rapidly since 1970, but the supply of raw materials from domestic sector is not sufficient and depends on the imported from the other countries. Recently Indonesian textile industry consumed cotton fiber for the amount of 700,000 ton per year equivalent with USD 1 billion, of which those fibers are 98% imported. The crucial problems are that the sufficiency in raw material is important to keep Indonesia textile industry running. Ramie as natural fibers is prospective to become complementary of raw material for textile. Therefore, technical know how of ramie processing shall be developed and implemented. There are great opportunities to develop ramie fibers as textile raw materials in Indonesia. They will created not only formal and non formal job by involving small and medium enter prices but also open new opportunities to diversify textile products and to improve value of textile products. 7. Priority Employment, Investment, Export 8. Objectives a. To establish ramie processing facilities for carrying out R & D activities in natural fibers especially for ramie in order to support ramie business units. b. To disseminate technical know how of ramie processing to small and medium enterprises. 9. Activities a. Establishing ramie processing machineries especially machinery for long fibers processing spinning system b. Research and development of ramie processing technology with long fibers processing spinning system.

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Code No: T-02-01900-0407-064386 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,600,000 0 1,600,000 800,000 0 0 0 800,000 2,400,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,400,000 2,400,000

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Code No: T-02-01900-0407-064387 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Establishment of Electronic Ceramic Laboratory Unit : 12 months : Bandung, West Java : Ministry of Industry : Ministry of Industry

6. Background and Justification Demand for electronic products, such as electronic appliances for households, offices, medical purposes, military purposes, etc., have been increasing steadily. The current needs of electronic industry for electronic ceramic component such as thermistor, resistor, conductor, piezoelectrics etc are about 20% of total electronic component. Demand for electronic products increases between 7~25% per annum. Since the standardization product certifications will become an important part of future trade process, it is necessary to establish a laboratory with appropriate testing equipment. Tests for ceramic components are necessary to give information on the actual performance of the electronic component. In addition, the establishment of the laboratory is also expected to facilitate research and development activities on ceramic electronic components in Indonesia. The Center for Ceramics is an institution that has the tasks and functions of performing tests, standardization, and research and development activities of ceramic electronic components. The Center for Ceramics proposes "The Establishment of Electronic Ceramic Laboratory" in order to improve its competency in electronic ceramics. 7. Priority Employment, Investment, and Export 8. Objectives To establish accredited electronic ceramic laboratory unit as a center of excellent for electronic ceramic products and other advanced ceramics in order to ensure quality 9. Activities a. To establish electronic ceramic laboratory building b. To complete electronic ceramic laboratory equipment 1)Research and development laboratory equipment 2)Testing laboratory equipment

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Code No: T-02-01900-0407-064387 c. Training procurement on 1)Electronic ceramics 2)Instrumentations and calibrations d. Electronic ceramic expert procurement 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,995,000 0 1,995,000 170,000 0 0 0 170,000 2,165,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,165,000 2,165,000

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Code No: T-02-01900-0407-064388 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Human Resources Development Center for Agro-Based Industry for Implementing Food Safety System in Indonesia : 12 months : Bogor, West Java : Ministry of Industry : Center for Agro-Based Industry, Ministry of Industry

6. Background and Justification Safe food supplies, both for local consumption and for enhancing competition in the international market have become the major requirement in the food safety system. Many countries have implemented special requirements for food especially for food imported such as Bioterrorism act (USA), White Paper (UK). One of those requirements which was issued by the ISO and have been adopted by many countries is food safety system HACCP (Hazard Analysis Critical Control Point). Recently agro-based industries especially for small and medium enterprises face some obstacles for implementing HACCP system due to their lack of knowledge on the food safety system and how to fulfill the requirement of that system. The Center for Agro-Based Industry has to improve its human resources and adopt news technology to solve the obstacles faced by agro-based industry. Thus an obstacle is solved by conducting a training program and consultant services. A grant aid is expected from the donor country to provide the training program and consultant services. 7. Priority Employment, Investment, and Export 8. Objectives a. To improve Center for Agro-Based Industry capability in providing technical Services for agro-based industries. b. To improve the technological capability on agro-based industry in producing superior and marketable products.

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Code No: T-02-01900-0407-064388 9. Activities a. Human Resources Development through overseas training for Center for AgroBased Industry staff in field of: 1) Food design and engineering, related food safety issue 2) Food safety system and HACCP auditor competence in international level 3) Marketing and business development strategy b. Technology transfer through consulting services (expert assistance) in filed of food biotechnology process and minimally process of food (hurdle technology) c. Equipment procurement d. Vertical Milling Machine 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Code No: T-02-01900-0407-064389 1. Project Title 2. Duration 3. Location 4. Executing Agency 5. Implementing Agency : Improving the Environmental Performance of SMIs by Promoting Cleaner Production in Indonesia : 24 months : National wide : Ministry of Industry : Ministry of Industry

6. Background and Justification Existing government policies to address environmental management of manufacturing have not worked in favor of SMIs activities. In dealing with pollution, for example, the policies focus on end-of-pipe treatment based on a set of effluent standards. Industries are required to treat their waste before discharging them into the environment. With either individual or common treatment facilities, waste treatment requires significant financial resources. Therefore, the end of pipe treatment policy is not practical and affordable for SMIs. In finding a win-win solution to deal with environmental problems associated with industrial activities, the cleaner production is proven to be a more promising approach. 7. Priority Employment, Investment, and Export 8. Objectives a. To assist the Government in minimizing environmental problems associated with SMIs development and increasing SMIs productivity through systematic implementation of the cleaner production. b. To increase efficiency and eco-productivity of SMIs by implementing cleaner production in order to be economizing in material and resources; to decrease production cost environmental effect. 9. Activities a. Identification of potential SMIs clusters and selection of participating firms. b. Carry out of technical assistance (include CP audit) and institutional support for cleaner production implementation. c. Monitoring, evaluation and reporting.

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Code No: T-02-01900-0407-064389 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 100,000 0 0 0 100,000 2,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 2,000,000 100,000 2,100,000

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Code No: T-02-01900-0407-064390 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Establisment of Electronics Industrial Center at North Sumatera : 36 months : North Sumatera : Ministry of Industry : Ministry of Industry

6. Background and Justification Recently, electronics industry activities remain heavily concentration in Java Island and Batam Island. There are abundant human resources and raw materials, especially for electronic component. Potential market is promising, which is fulfilled from import and Java Island. By developing Center of Electronics Product in North Sumatera, the demand of electrnic product could be fulfilled from domestic as well as promoted economic development of North Sumatera. Futhermore North Sumatera can be choosen as production based for electronics Industri from Malaysia and Singapura. 7. Priority Employment, Investment, and Export 8. Objectives To spread electronics industry outside Java and Batam Island as well as to promote/ increase electronic sector contribution to national income and employment absorption. 9. Activities Development of electronics industry in North Sumatera 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 390 : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,000,000 0 6,000,000 0 0 0 0 0 6,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,000,000 6,000,000

Code No: T-02-01900-0407-064392 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening of the Research and Development Laboratory for Iodized Foods and Beverages Commodities : 24 months : Semarang- Central Java : Ministry of Industry : Ministry of Industry

6. Background and Justification Iodine is an essential chemical component of the thyroid hormone, thyroxin and trtiiodothyronine, which the necessary for life, so iodine deficiency is major threat to held. Iodine deficiency has been eliminated in large part of Indonesia, in accordance with the latest national evaluation survey, but Bali is still affected by mild iodine deficiency. In many places iodine deficiency has been replaced by iodine excess, occasionally potentially toxic which caused cancer. Iodine excess is an occasional and probably unavoidable consequence of correcting iodine deficiency. Sal is one of the best of iodine vehicle among the others stuff (for examples: Palm oil, sugar, tablet etc.). Indonesia has been realized The Iodized Salt Program since 1980 but till 2000, the data of iodine deficiency in Indonesia show that 87 million persons stay at endemic location, 20 million persons get a goiter, 290 thousand get cretin and the lost point IQ 140 million (Department of Health). One of reasons of unsuccessfully program is unfulfilled salt quality that caused by habit of salt farmer. It caused by unknown them about by product that has high value and also traditionally technology of salt. These conditions allow the foods and beverages industries to fortify their product by Iodine, in the other hand there is no standard for limit of Iodine contents on foods and beverages. To maximize preventive of iodine deficiency that caused too low and minimize the side effect caused by excess iodine, it need some action that are: a. Monitoring of iodine content on foods, beverages and salt consumption, that result can be used to create the regulation of iodized commodities. b. Research on advantaging of product on salt farming, packaging of salt, the accurate, cheap and easy test kit apparatus for iodine, NaCl and impurities content on salt. c. Research that correlate with stability of iodine on food, beverages and salt. 7. Priority Employment, Investment, and Export

T- 391

Code No: T-02-01900-0407-064392 8. Objectives The objective of Strengthening of Research and development Laboratory for Iodized Foods and Beverages Commodities at Semarang Institute for Research and Standardization of Industry and Trade (SIRSIT) is form the centre of services and information that relate with iodized commodities, thus also support the National IDD Centre Program for getting iodized salt for all and eliminate the iodine deficiency as public health problem without excess iodine problem. In meeting these objectives we would like to combine activities into 2 main groups, such as: Equipment Procurement and Human Resource Development. 9. Activities a. Expert recruitment b. Equipment procurement c. Training d. Coordination, consultation, and evaluation 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 900,000 0 900,000 25,000 0 0 0 25,000 925,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 925,000 925,000

T - 392

Code No: T-02-01900-0407-064393 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : The Development of Nanotechnology for Bioactive Component Extraction : 24 months : Bogor and DKI Jakarta : Ministry of Industry : Center for Agro-Based Industry, Ministry of Industry

6. Background and Justification Related to global competitiveness, a research institute has to be able to follow the recently development of technology trend issues. Human resources and equipment either processing or analysis equipment should be developed to nanotechnology. Nanotechnology on the research of bioactive component extraction should be applied in Indonesia. The Asian-pacific Nano Forum (ANF)-2 meeting, on December, 8-10th, 2005 at Geelong-Melbourne Australia, has resulted 10 (ten) nanotechnologies application on various filed of studies including food processing and storage. Based on that result, processing of bioactive component related to the food is as part of which be able to applied nanotechnology. For achieving the task, Center for Agro-Based Industry, Agency for Industrial Research and Development, Ministry of Industry must develop human resources capability and their equipment facilities. For the the information, on 1998 reported that Center for Agro-Based Industry has accepted the loan from Asian Development Bank (ADB) which has just run about 25%. 7. Priority Employment, Investment, and Export 8. Objectives a. To improve personnel capability in terms of development its human resources that is completed with suitable equipment facilities. b. To improve technical services capability for agro-based industry that include nanotechnology processing on bioactive component extraction. c. To improve technological capability of agro based industry, especially in nanotechnology processing on bioactive component extraction.

T- 393

Code No: T-02-01900-0407-064393 9. Activities a. Human resources development through overseas (China, Japan, and Korea) training program (course and on-the-job training) for CABI staffs in field of: Bioactive component of food extraction using nanotechnology b. Equipment Procurement 1) Processing equipment related to nanotechnology for extraction of the bioactive component 2) Analytical equipment related to nanotechnology for extraction of the bioactive component c. Transfer of technology to the SMIs in field of Bioactive component extraction using nanotechnology 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 200,000 0 0 0 200,000 1,700,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,700,000 1,700,000

T - 394

Ministry of Agriculture

T- 395

T - 396

Code No: T-04-01800-0403-065405 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Support for Agricultural Development 36 months National Wide Ministry of Agriculture Ministry of Agriculture

6. Background and Justification Development of the agricultural sector is directed at enhancing the production of staple food, especially domestic paddy/rice that is supported the supply of animal protein and protein from livestock and fish. Development of the agricultural sector is also aimed at enhancing the quality of growth of agriculture, in terms of growth that can yield income increase and equity as well as growth that invariably takes into account the carrying capacity of the environment. In order to attain the aforementioned objectives of agricultural sector development, it is necessary to have the support for developing agriculture. Such support is needed for resolving agricultural problems, such as the vulnerability of paddy production on account of natural disasters, the low productivity of livestock and the not yet functioning national animal health system, the low productivity and quality of estates products and horticulture, the not yet fully functioning information dissemination system, and the need to optimize and rehabilitate lands and irrigation networks, rural roads and farmers access roads by involving community participation. Such support is also needed for developing agricultural and rural infrastructure. The support for developing the agricultural sector is expected to accelerate growth of the agricultural sector. 7. Priority Revitalization of Agriculture, Rural, Marine, and Fisheries 8. Objectives a. Supporting development of the agricultural sector in the context of supporting the economy of Indonesia. b. Developing policies on the management of agricultural, livestock and estate products. c. Enhancing human resources who manage agriculture, livestock and estates. d. Developing policies for the agricultural sector.

T- 397

Code No: T-04-01800-0403-065405 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops on women participation in development program c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution f. Research

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 20,000,000 Foreign Expenditure : US$ 0 20,000,000 20,000,000

Local Expenditure : US$ 0 20,000,000 TOTAL : US$ 0 0 0 0 20,000,000 20,000,000

T - 398

Code No: T-05-01800-0403-065406 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Quarantine Early Warning System in Minimizing the Spreading Disease of Avian Influenza (AI) Among the Regions Based on Information Technology : 12 months : DKI Jakarta : Ministry of Agriculture : Agricultural Quarantine Agency, Ministry of Agriculture

6. Background and Justification Outbreak of Avian Influenza (AI) is increasing and spreading from affected areas to free ones in the country. The spreading of the AI disease followed the trade of poultry (movements of poultry and poultry products). The Agricultural Quarantine Agency (AQA) has the function of preventing the introduction and further spreading of the AI anymal disease, including AI, through controlling trans boundary and trans area movements of agricultural products. The AQA manages 40 Animal Quarantine Stations (AQSs) throughout the Indonesian Archipelago, including 101 active check-points. In order to implement the function against AI, AQA must have a special system to strengthen the capacity to detect and respond to a new outbreak of the disease in real time. 7. Priority Education and Health 8. Objectives The system allows for automated alerting and notification via short messaging system (SMS) and e-mail. Animal Quarantine officials at the district, provincial or national level can view and analyze the data in real-time through the web. They can also use the communication system module to send out broadcast SMS to field workers and the collaboration module to share critical program information. 9. Activities a. Equipment and maintenance b. Training programme c. Instalation and consultation d. Operational and administrative work

T- 399

Code No: T-05-01800-0403-065406 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 90,000 0 0 0 90,000 1,090,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,090,000 1,090,000

T - 400

Code No: T-04-01800-0403-065408 1. Project Title 2. Duration 3. Location 4. Executing Agency 5. Implementing Agency : Development of Jatropha Curcas Oil as Bioenergy for Rural Areas : 3 months : East Nusa Tenggara : Ministry of Agriculture : Ministry of Agriculture

6. Background and Justification Indonesias dependence on petroleum fuel as energy source is high, and it is become worse by spending a lot of money to subsidize the price of petroleum which is tend to increase day by day. As an impact, the effort of developing alternatives energy resources such as Biomass, Biodiessel, solar energy, etc is very low as the price is not attractive compare to subsidized petroleum. The situation has changed since no longer subsidiaries for BBM. Government of Indonesia recently starts to develop the use of alternative energy resources which is eco friendly, renewable and economic. One of the alternative energy sources is biodiessel. Jatropha curcas oil is one of the most prospective biodiessel that feasible to develop especially in remote areas which is the transportation/distribution cost for the petroleum is relatively high. Jatropha curcas plant is annual crop that grow well in semi arid (dry) areas or in marginal land such as in NTT province. The development of Jatropha curcas oil as an alternative energy to replace the use of petroleum in remote area in NTT therefore is economical since petroleum is difficult to obtained and costly over there. Development of Jatropha curcas oil in NTT need comprehensive and integrated plan. It needs a consultant that expert in planning and organizing either on farm or off farm activities of Jatrophas curcas development. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To carry out a Feasibility Study on the use of Jatropha curcas oil as an alternatives energy source for replacing petroleum (diesel and benzene) in remote area in NTT for agriculture and fisheries activities. b. To take a benefit of marginal/critical land in NTT province to cultivate Jatropha curcas Linn.

T- 401

Code No: T-04-01800-0403-065408 9. Activities a. Allowances b. Computer supply and peripherals c. Traveling d. Others/miscellaneous 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 150,000 0 0 0 150,000 1,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,000,000 150,000 1,150,000

T - 402

Code No: T-04-01800-0403-065409 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Feasibility Study on the Development of Cocoa Industry in Indonesia : 12 months : South Sulawesi, Southeast Sulawesi, and Central Sulawesi : Ministry of Agriculture : Directorate General for Processing and Marketing of Agricultural Product, Ministry of Agriculture

6. Background and Justification Indonesia Ministry of Trade has conveyed that Indonesia would like to invite foreign investors to collaborate in among others the agricultural sector which includes: the development of downstream sugar processing industry, palm oil, cocoa, rubber and joint research on the development of Indonesian Hybrid rice. One of the proposals is to establish a cocoa downstream industry with partnership program (between farmer and company). To support the proposal, the government needs to develop a FS on the Development of Cocoa industry. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To study the possibility of mutual benefits partnership cooperation between farmer groups and industry in order to produce high quality cocoa products; b. To study the potential benefits of the establishment of joint cooperation for the development of the cocoa processing industry; c. To assist the government in resolving automatic detention for the Indonesian cocoa beans. 9. Activities a. To review the current situation of cocoa in Indonesia; b. To conduct a comprehensive study for the possibility of partnership cooperation between farmers group and industry in Sulawesi; c. To formulate a project proposal on optimization, rehabilitation and expansion of capacity of the existing cocoa processing industry, establishment of new cocoa industry, and rehabilitation of cocoa plantation.

T- 403

Code No: T-04-01800-0403-065409 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 150,000 0 0 0 150,000 1,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,150,000 1,150,000

T - 404

Code No: T-04-01800-0403-065416 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening Quality Control System of Agricultural Products : 48 months : DKI Jakarta : Ministry of Agriculture : Directorate General for Processing and Marketing of Agricultural Products, Ministry of Agriculture

6. Background and Justification With regard to crop protection, Sanitary and Phytosanitary (SPS) problem have in fact become an important, major concern in which restrictions and inhibitions on trade of agricultural produce, particularly horticultural and estate crops produces, due to pest infestation and chemical residue have occured. This protruding issue regarding with food safety and quality will be an intense signal for Indonesia to always and seriously give quick respond to such challenges. In case of pest infestation, fruit flies, family Tephritidae as the most serious pest on horticultural produce which cause economic damage in almost all fruits and vegetables growing areas in the world. For that reason, in order to promote the quality and safety on Indonesias agricultural produce, and make the produce capable of competing in the global market and satisfying the high consumers preference as well, it is considered necessary that strengthening efforts to meet the standardization and quality control system in Indonesia be initiated. Based on this conditions, the assistance is needed to build the competency in several areas such as the compliance of SPS-WTO requirements, i.e surveillance for plant pests, diagnostic capacity data management surveillance guidance /manual, providing laboratory facilities, particularly for equipment and supplies. The improvement of skill and knowledge of technical staffs are needed especially on pest identification which infesting commercial agricultural product and its economics status, surveillance methods, distribution, host plant, ecobiology, and seasonal abundance of each species. In order to reduce pest attacked, it will also lead directly to the training of farmers through farmer field school method in understanding and improving farmers skill on IPM technology. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To strengthen implementation food safety system in Indonesia to meet international standard T- 405

Code No: T-04-01800-0403-065416 b. To improve and strengthen capacity in order to reduce pre and post harvest losses by: 1) Providing information of food safety monitoring results 2) Providing proper services and recommendation for controlling food safety to the farmers 3) Providing proper laboratory services for safety and quality 4) To achieve the proper management system in handling food safety 5) Capacity improvement of human resources on food safety and quality 9. Activities a. Surveillance for pest list based on ISPM standard (for horticulture) b. Study on eco-biology of fruit flies (for horticulture) c. Provision of equipment and machine d. Dissemination of information, publications, and manuals/quidance e. Farmer field school and training for food safety inspector f. Development of IPM implementation in large scale area g. Biocontrol laboratory facilities, vapour heat treatment units and pesticide

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 17,100,000 0 17,100,000 2,565,000 0 0 0 2,565,000 19,665,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 19,665,000 19,665,000

T - 406

Code No: T-04-01800-0403-065418 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Feasibility Study on the Development of Indonesia Sugar Toward Self-Sufficiency of Sugar in 2009 : 12 months : National wide : Ministry of Agriculture : Secretariate General, Ministry of Agriculture

6. Background and Justification In 2004, total Indonesian sugar consumption was 3.3 millions ton, import was 1.3 million ton and 2.0 million ton was from domestic production, operating 58 sugar mills in 9 provinces scattered in Java, South Sumatera, North Sumatera, Lampung, South Sulawesi dan Gorontalo with a total capacity of 190.000 TCD. In 2009, the consumption is projected to total 3.5 million ton. The government realizes that without any effort, the gap between consumption and local production will become larger and larger. To fill the gap, the government of Indonesia has set the Program of National Self-Sufficiency of sugar supply by 2009. To support the implementation of the program, a feasibility study is needed. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To conduct a comprehensive review on the existing condition of Indonesian sugar industry and to assess the on going National sugar policy set up by the government; b. To study the prospect of Indonesian sugar industry and the possibility of achieving self sufficiency of sugar in 2009; a. To assist the government of Indonesia in setting up a comprehensive policy on the Development of National Sugar Industry; b. To formulate a project proposal on the Development of the National Sugar Industry. 9. Activities a. To review the existing condition of Indonesia sugar industry b. To assist the government in setting up the National sugar policy

T- 407

Code No: T-04-01800-0403-065418 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,550,000 0 1,550,000 233,000 0 0 0 233,000 1,783,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,783,000 1,783,000

T - 408

Code No: T-05-01800-0490-065419 1. Project Title : Regional Programme for Participatory and Integrated Agriculture, Forestry and Fisheries Development for Long Term Rehabilitation and Development in TsunamiAffected Areas : 60 months : Nanggroe Aceh Darussalam and North Sumatera : Ministry of Agriculture : Ministry of Agriculture

2. 3. 4. 5.

Duration Locations Executing Agency Implementing Agency

6. Background and Justification The majority of people affected by the December 2004 tsunami in Indonesia, the Maldives, Srilangka and Thailand were small farmers and fishermen, who depend on seasonal agricultural, fishing and other income-generating activities, and on home gardens and foers/trees for households use goods. In many places, unsustainable land management practices had degraded lands and vegetation prior to the tsunami. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives The regional program will facilitate sharing of experience of and lessons from on going post tsunami rehabilitation activities in the region, and help participating countries strengthen local and national capacities in participatory and integrated agriculture, forestry and fisheries development. It will support rehabilitation and reconstruction efforts aimed at not only repairing tsunami damage, but also to rebuild better, and put in place improved land and resources management systems, with the active participation of local communities. It will facilitate the development of proactive stakeholders, including communities, to work together to plan and implement integrated, sustainable coastal resources management strategies to improve their sources of living, health and nutrition, and reduce their vulnerability to coastal natural disasters and economic shocks. 9. Activities Training and workshops

T- 409

Code No: T-05-01800-0490-065419 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 0 150,000 0 0 0 150,000 1,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,150,000 1,150,000

T - 410

Code No: T-04-01800-0403-065420 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Improving of Post-Harvest Technology and Marketing Facilities : 12 months : National wide : Ministry of Agriculture : Directorate General for Processing and Marketing of Agricultural Product, Ministry of Agriculture

6. Background and Justification In general, farming and fishery activities in Indonesia are small size, scatterd, poor post harvest/catch technology practices, low capital, poor net working as well as poor access to market information. Then, these factors have put farmers and fishermen in a weak bargaining position (price taker). Small land holding and poor village insfrastructure condition especially transportation are the main factors hampering farmers and fishermen to bring their products to the market. Besides, poor post harvest/cath handling due to the lacking of post harvest/catch technology and facilities available in the production site, it has forced farmers and fishermen to sell their products to the midlemen, known as the tengkulaks, coming to to the villages. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To establish agriculture and fisheries wholesale market as the market outlet of the products from STAs ( Sub Terminal Agribusinesses) b. To establish the integrated marketing system from production center to consumer center (supply chain management) as well as information system from market level to the production level c. To establish supporting institutions such as registration and barcode authorities 9. Activities a. Feasibility study b. Establishment of wholesale markets c. Establishment of packing house d. Distribution facilities e. Development of system information f. System implementation g. Expert for wholesale market development T- 411

Code No: T-04-01800-0403-065420 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 7,691,000 0 7,691,000 1,154,000 0 0 0 1,154,000 8,845,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 8,845,000 8,845,000

T - 412

Code No: T-04-01800-0403-065531 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Sustainable Management of Agricultural Research and Technology Dissemination Project (SMARTD) : 24 months : DKI Jakarta : Ministry of Agriculture : Research and Development of Agriculture Agency, Ministry of Agriculture

6. Background and Justification The Indonesian Agency for Agricultural Research and Development (IAARD) is working toward the upgrading of the research capacity of NRIs scientist through training activities ranging from formal academic degree programs to short courses and on-the-job training. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To enhance and strengthen the infrastructure development of NRIs within IAARD in terms of its accreditation, laboratory and equipment capacities, human resources professionalism and IPR development; b. To enhance and strengthen the human resources development of IAARD staff; and c. To improve the role of agricultural R&D on agricultural dissemination through close links of IAARDs work units with the private sector, local government, other research institutes and universities. 9. Activities a. Prepare the National Food System : Feeding Indonesia b. Prepare the National Bio-Mass energy system : powering future economic growth c. Prepare the national seed production and sertification system: breeding, production and distribution d. Human resources development : Research capacity and scientific farming e. Research and development to support agriculture revitalization : public and private sector partnerships f. Research results and technology dissemination :charting innovative pathways

T- 413

T-04-01800-0403-065531 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,500,000 0 1,500,000 0 0 0 0 0 1,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,500,000 1,500,000

T - 414

Code No: T-04-01800-0403-065534 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agency : Standardization and Quality Control for Horticulture Production of Indonesia : 24 months : West Java and East Java : Ministry of Agriculture : Directorate General for Horticulture, Ministry of Agriculture

6. Background and Justification Trade globalization through the WTO agreement on agriculture has provided opportunities for many of the developing countries, including Indonesia. Refers to the globalization of international trade that has happening or is still in process of being established is a challenge and also opportunity facing agribusiness development. As a result, each opportunity brings about corresponding challenges from the competing products in the international markets. In this regard, Indonesia should have to examine its strengths and weakness in order to assess its stand in the global trade of agricultural produce. Presently, Indonesia has been encountering various problems in agriculture, particularly in crop protection. One of the constraints in the effort of promoting agricultural production is pest infestation that caused a considerable economic yield loss and reduces the quality of produce as well. Given this condition, therefore, great attention should be devoted to overcoming this pest problem, among others by applying available pest control methods. With Regard to crop protection, Sanitary and Phytosanitary (SPS) problems have in fact become an important, major concern in which some restriction and inhibition on trade of agricultural produce, particularly horticultural produce, due to pest infestation and chemical residue have occured. In case of pest infestation, fruit fly family Teptritidae as the most serious pest on horticulture product as particularly on mango which cause economic. The presence of fruit flies in a country has major quarantine implications: i) Strict quarantine restriction to trade are applied by importing market countries ii) Costly market access technologies are required in order to meet the marketing contraints. Quarantine regulations imposed by an importing country can other deny a producing country a potential export market, or force the producer to carry out expensive disinfestations treatment iii) Permanent surveillance must be established in production areas in order to quarantine importing countries that the fruit fly species are known in the locations from which crops are exported iv) Quarantine surveys must be established in key locations such as ports of entry, to delect new incursions of exotic fruit fly pest species. Based in this condition, the assistance is needed to build the competency in several areas such as the compliance of SPS-WTO requirements, i.e surveillance for plant pests (Pest list), diagnostic capacity data management surveillance quidance/manuals, and providing T- 415

Code No: T-04-01800-0403-065534 laboratory facilities particularly for equipment and supplies. The improvement of skill and knowledge of technical staffs are needed especially on past identification which infesting commercial agricultural product and its economics status, surveillance methods, distribution, host plant, eco-biology, and seasonal abundance of each species. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. To strengthen implementation for fruit flies control in Indonesia to meet international standard; b. To improve and strengthen capacity building in order to reduce pre and post harvest losses. 9. Activities a. Identification of location and project socialization; b. Field survey; c. Study on eco-biology of fruit flies on mango; d. Laboratory equipment and supplies; e. Fruit fly control; f. Dispatch experts; g. Monitoring and evaluation; h. After care. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 416 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 2,600,000 0 2,600,000 0 0 0 0 0 2,600,000

0 2,600,000 2,600,000

Code No: T-04-01800-0403-065535 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Enhancing Livestock Development Policy 24 months DKI Jakarta Ministry of Agriculture Directorate General for Livestock Services, Ministry of Agriculture

6. Background and Justification Livestock Development Policy in 2005-2009 was formulated as pillars of livestock development, that take into account its important role as protein source for improvement human nutrition, and its role in raising the income and welfare of small scale farmers.It should be addressed to improve productivity by strengthening the utilization of local resources with improved technology and enhancing human resources. In addition, the policies seek to establish the institutional system such as the livestock breeding schemes and animal health control programs which require the national standardized control program under the decentralized policy conditions. But, recently the decentralization has been strengthened too much and the local government has implemented their own breeding activities such as the semen production of sire and importing breeding stock from other countries. The situation has created some shortages especially for breeding policy which should be controlled through national strategies. In addition to this, the Avian Influenza (AI) control has become an urgent matter, and it is necessary to ensure coordination and collaboration between the other donors supports to yield a more effective AI control program. Under these circumstances, the Ministry of Agriculture (MOA) needs to improve the capacity of government officers and strengthen the administrative capacity and also needs an experienced expert for AI to formulate the strategy as well as to form the livestock development policy under the decentralization. 7. Priority Revitalization of Agriculture, Rural Marines, and Fisheries 8. Objectives Overall Goal: The improved ability and skill for managing livestock breeding and production and to improve the national breeding policy and strategies under the decentralized policy condition, and finally to improve the self-sufficient rate of animal products.

T- 417

Code No: T-04-01800-0403-065535 Purpose : a. To obtain data and information as a source of national breeding system formulation under the decentralization era; b. To learn a modern breeding technique that could be applied in Indonesia; c. To compare the implementation of breeding policy in abroad and Indonesia The expert is expected to provide : a. Assistance and advice for improving policy and institution in livestock development to promote the Livestock Development Policy (2005-2009) under the decentralization, planned newly by DGLS in 2005; b. Assistance and coordination of the support for National strategy for avian influenza control program; c. Assistances and advise for self-reliant operation of technical cooperation in livestock development 9. Activities a. To visit the overseas administration office for livestock development policy and to learn to the procedure and project scheme for this issue; b. To visit the prefecture administration office and organization for livestock breeding with collaboration with national organization; c. Long-term experts on livestock development. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 5,000,000 0 5,000,000 0 0 0 0 0 5,000,000

0 5,000,000 5,000,000

T - 418

Ministry of Social Affairs

T- 419

T - 420

Code No: T-01-02700-1104-063421 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Integrated Rehabilitation Center for Children with Problems in Indonesia : 24 months : South Sulawesi : Ministry of Social Affairs : Directorate General Social Rehabilitation and Service, Ministry of Social Affairs

6. Background and Justification The purpose of the project of Rehabilitation Center for juvenile delinquents, that located in the town of Makassar, South Sulawesi Province, is to improve the existing facilities that is expected be diversified as a place of refuge, rehabilitation and support center for street children, disadvantaged young women, and ex-drugs users. It is also planned that the center will function as a training center for social workers. Sulawesi and the southern part of the region rank high across a broad range of social problems compared to other regions in the country. Based on the data, the broad spectrum of problems are being faced by the region, especially a great number of families live in poverty. The widespread financial struggle underpins many of the other problems, such as family breakup and particularly the abandonment of children. 7. Priority Poverty and Disparity Alleviation 8. Objectives The Rehabilitation Center will strive to become a leading organization at the forefront of social facilities for street children and disadvantaged young women, also as ex-drug users rehabilitation using the concept of The Selfhelp Social Learning Treatment Model. 9. Activities a. Improvement and development of the existing facilities b. Enhance its function as a refuge, rehabilitation and support centre c. Expand its function as a training centre for social workers d. Planning and analyzing the development of training centre e. Redesign, reconstruction and reimplementation of existing facilities

T- 421

Code No: T-01-02700-1104-063421 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,520,000 0 6,520,000 652,000 0 0 0 652,000 7,172,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 7,172,000 7,172,000

T - 422

Ministry of Manpower and Transmigration

T- 423

T - 424

Code No: T-02-02600-0402-063424 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agency : : : : : Improvement of Employment Services in Indonesia 12 months DKI Jakarta, Central Java, and Riau Islands Ministry of Manpower and Transmigration Ministry of Manpower and Transmigration

6. Background and Justification Both Investment (domestic and foreign) and the labor market information system (LMI) significantly affect the employment situation in Indonesia. Both can play important roles in creating more and better job opportunities, as well as matching the needs of investors/employers and job seekers interests. A development study and pilot projects on LMI are needed to produce effective and efficient system, in order to provide the Government with an appropriate operation system of employment services. 7. Priority Employment, Investment and Export 8. Objectives a. To deal with Indonesias unemployment problems by developing a better LMI; b. To support Indonesia-Japan Strategic Investment Action Plan, where investors can access better information concerning Indonesian job seekers; c. To develop pilot projects on LMI (Jakarta, Batam, Semarang). 9. Activities a. Development of Labor Market Information (LMI) System in pilot areas; b. Provision of equipments; c. Conducting related workshops/seminars/discussions; d. Provision of experts.

T- 425

Code No: T-02-02600-0402-063424 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 60,000 0 0 0 60,000 1,060,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,060,000 1,060,000

T - 426

Code No: T-02-02600-0402-063425 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Combating Forced Labor and Trafficking of Indonesian Migrant Workers : 24 months : DKI Jakarta : Ministry of Manpower and Transmigration : Ministry of Manpower and Transmigration

6. Background and Justification This project is an extension of Mobilizing Actions for the Protection of Domestic Workers from Forced Labor and Trafficking Project, which was implemented from May 2004 to August 2006. The project is based on results and working relationship of the previous project period and countries. It will result in improved protection for Indonesian migrant workers in Indonesia as well as in the main destination countries, and will contribute to a more effective migrant workers placement system. The project will address the specific needs and concerns of Indonesian migrant domestic workers in Malaysia, Singapore, and Hong Kong, as well as their situation before departure and after return in Indonesia. Although the protection of migrant workers has been identified as a priority in successive national development plans of Indonesia, the Indonesian Government has not effectively been able to protect migrant domestic workers, who remain as a highly vulnerable population group. In the main destination countries for migrant domestic workers in South East Asia, such as Malaysia, Singapore, Hong Kong, as well as in destination countries in the Middle East. Policies and practices regarding migrant workers have not yet adequately protect migrant domestic workers against trafficking and forced labor practices. 7. Priority Employment, Investment, and Export 8. Objectives a. To reduce migrant domestic workers vulnerability to trafficking and forced labor practices by raising public awareness and undertaking targeted advocacy and technical cooperation to promote policy and legislative protection measures for migrant domestic workers; b. To provide protection, outreach, livelihoods and reintegration services to migrant domestic workers who are vulnerable to or victims of trafficking and forced labor practices;

T- 427

Code No: T-02-02600-0402-063425 c. Increase capacity of government officials and other key stakeholders to be effective in combating forced labor practices and trafficking in migrant domestic workers. 9. Activities a. Strengthening policy and legal frameworks, and practical implementation mechanisms for the protection of domestic workers against trafficking and forced labor in source and destination project countries; advocacies, consultations and technical assistances; b. Increasing awareness of communities, leaders, decision-makers, and key stakeholder representatives of domestic workers as workers with equal labor and human rights and protection needs; c. Enhancing the quality and availability of outreach, protection, livelihood and reintegration services for migrant domestic workers and their families; d. Strengthening the capacity of key stakeholders to implement measures within their mandate areas for the protection of migrant domestic workers; e. Strengthening knowledge base, data collection and dissemination systems. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,408,000 0 1,408,000 140,000 0 0 0 140,000 1,548,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,548,000 1,548,000

T - 428

Code No: T-05-02600-0402-063426 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Education and Skill Training for Youth in Eastern Indonesia (EAST) : 48 months : National wide : Ministry of Manpower and Transmigration : a. Ministry of Manpower and Transmigration; b. Ministry of National Education.

6. Background and Justification The high youth unemployment rate in Indonesia is compounded by the low rate of entrepreneurship among young women and men. Young people are forced to enter selfemployment to make ends meet or to bridge periods between jobs, and few of them end up building a sustainable business. Given that small- and medium-sized enterprises form the backbone of the Indonesian economy and have contributed to the creation of thousands of new jobs each year, it is important to tackle the root causes of this low rate of entrepreneurship. Indonesias system of technical and vocational education and training is in need of strengthening with regard to competent-based training and linkages with the private sector. Most schools and training centers in rural and remote locations require technical assistance to provide market-oriented skills education and to facilitate the job seeking for their graduates. They also require closer linkages to private companies that can provide equipments, advices, on-the-job-training and job placement. Improving the quality of education and training is not only a matter of improved training of teachers and availability of up-to-date equipment, as equally important is that schools and training centers are aware of career and job opportunities in the public and private sector and how to access labor market statistics that could inform them about labor market conditions and job opportunities for their graduates. Career guidance is needed to inform young people and their parents about their options for education and training, and about the consequences of their choices for career and earning prospects. 7. Priorities a. Education and Health b. Employment, Investment, and Export 8. Objectives a. To enhance employable of productive youth employments; b. To eliminate and prevent child labor through increased access to education and training opportunities. T- 429

Code No: T-05-02600-0402-063426 9. Activities The project is designed around the life cycle approach, taking into account the close relationship between needs of youth at all stages of the learning cycle; from participation in basic education to training opportunities in or through the workplace. To address the obstacles experienced by adolescents and youth in accessing education and training, and to facilitate their transition to the labor market, the project proposes a range of activities to benefit the three main age groups of children and youth concerned: a. Children aged 13-15, both out of school and in school (NFE, Junior Secondary School); b. In-school youth aged 15-18 (Vocational and General Secondary School); c. Out-of-school youth aged 15-29 who are or want to be enrolled in public and private training and education programs. The ranges of activities are: a. c. Improving access, quality and relevancy of basic learning opportunities; Enhancing preparation among out-of school youth for long-life-learning; b. Supporting the conducive environment for a successful school-to-work transition; d. Developing the entrepreneurship culture among young people. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 22,675,000 0 22,675,000 1,125,000 0 0 0 1,125,000 23,800,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 23,800,000 23,800,000

T - 430

Code No: T-02-02600-0402-063427 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Construction of Technical and Cultural Cooperation Center : 36 months : DKI Jakarta : Ministry of Manpower and Transmigration : Ministry of Manpower and Transmigration

6. Background and Justification There are many Indonesian migrant workers in abroad. Because of differences in culture and habit, the workers should accordingly be prepared to allow them to adjust to foreign culture and habit, especially have competency to use local foreign. Therefore, a center for Indonesia - countries destination Technical and Cultural Cooperation is required to prepare the workers through foreign employment permit system in terms of culture (language, habit, etc.) and other technical preparation. This project is to implement the MoU between Government of Indonesian (GOI) and government of destination country, stating that both governments should directly be responsible for the placement of Indonesian workers in destination country. 7. Priority Employment, Investment, and Export 8. Objectives a. To develop a center for facilitating and preparing Indonesian workers before working in abroad; b. To provide the centers management system that is operated by GOI. 9. Activities a. Constructing technical and cultural cooperation center for facilitating and preparing Indonesian workers before working in abroad; b. Provision of equipments; c. Conducting related workshops; d. Provision of experts.

T- 431

Code No: T-02-02600-0402-063427 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 150,000 0 0 0 150,000 3,150,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,150,000 3,150,000

T - 432

Code No: T-02-02600-0402-063428 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Support for Manpower Policy and Industrial Relation 36 months National Wide Ministry of Manpower and Transmigration Ministry of Manpower and Transmigration

6. Background and Justification Although the new employment opportunities are improving, the high rate of open unemployment still becomes one of the main problems faced by Indonesia. The development target indicated in the Medium-Term National Development Planning (RPJM) 2004-2009 is the reduction of open unemployment to 5.1 percent of the workforce by the end of 2009. However, in reality, the number of open unemployment in August 2006 reaches 10.9 million or around 10.3 percent of the workforce. The slow growth of the private sector to create employment opportunities has led to the decline of formal jobs. Jobs in formal sector are still very limited, i.e. only 29.7 million formal jobs or 31.3% of the total workforce (August 2006). Low quality, competency and productivity of the workforce; inadequate level of education and training of the unemployed; high rate of youth unemployment; and inability of the workforce to meet the available employment opportunities are several key problems faced by Indonesia. Furthermore, the quality of placement and protection services for Indonesian workers abroad, whose remittance is up to Rp 24 trillion per year in average, still needs extensive improvement. The improvement of Vocational Training Centers is also undeniably required to make them able to perform competency-based trainings. They must be equipped with high-quality instructors, training materials, and equipment. If the vocational training centers are equipped with proper facilities, their graduates will very much support the improvement of Indonesian workers productivity. A sound system of workers certification and its recognition are essential to increase the competitiveness of Indonesian workers in the global economy. In order to achieve a harmonious industrial relation, the role and function of the government is to supervise the enforcement of rules and regulations, especially rules and regulations that relate to industrial relation. This supervision task requires high-quality human resources, especially the industrial relation inspectors. Furthermore, the implementation of bipartite negotiation between worker unions and employers still needs to be promoted and improved. The governments role is very important to encourage disputing parties to seek bipartite settlement, i.e. by means of effective, relatively fast, and inexpensive direct negotiations between worker unions and employers. Facilitating and easing the negotiation process with code of good faith and accompanied by balanced and equal-level treatment among disputing parties, require a sound and fair code of conduct. The code of conduct stipulates a guideline on how the disputing parties can interact with each other in an honest and sincere manner based on good faith. T- 433

Code No: T-02-02600-0402-063428 With the circumstances mentioned above, there are needs to continuously improve Indonesias manpower and industrial-relation policies. These policies shall promote a flexible labor market, which objectives are to create wider employment opportunities in formal sector (i.e. jobs with high productivity) with focus on jobs in labor-intensive industries. 7. Priority Employment, Investment, and Export 8. Objectives a. Supporting the development of flexible labor market; b. Supporting the creation of employment opportunities, especially in formal sector; c. Supporting the quality improvement of Indonesian workforce.. 9. Activity a. Development study/comparative study b. Trainings, seminars, and workshops c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 10,000,000 0 10,000,000 100,000 0 0 0 100,000 10,100,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 10,100,000 10,100,000

T - 434

Indonesian National Police

T- 435

T - 436

Code No: T-07-06000-0301-062524 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Project for Support Program for Reform of Indonesian National Police : 36 months : National wide : Indonesian National Police : Indonesian National Police

6. Background and Justification Formally, separated from the Indonesian Armed Forces as of April 1st, 1999 in the course of Reformation, the Indonesia National Police (hereinafter referred to as INP) were and have been unflinching endeavoring to realize a Civilian Police with serious and continuous efforts to create and/or improve its institutions, instrument/legal framework and means, and culture/human resources in order to become professional. Modern and democratic. Since February, 2001, INP have been compiling project of Support Program for Reform of Indonesia National Police, which has consist of several component and/or project. This program has been implementing a project called Project on Enhancement of Civilian Police Activities in Bekasi as a pilot project which aims to help build up capacity of police officers so that they can acquire knowledge, skills, and experience through on-the job training courses developed in the process of upgrading the organization and function of the Metro Bekasi Police and Bekasi Resort Police as a model police station, to the level appropriate for Civilian Police. Along with this project activities as a core component of the program, the program also functions to produce synergy as much as possible among other component within the program such as Project on Enhancement Civilian Activities (Tourist Police) in Bali Regional Police, various specially attuned training cources (counterpart training course, special training course of comparative study of police system for INP, and group training course), and grant aid to INP. In October 2005, the Chief of INP issued a strategic basic policy instruction with respect to the development program of POLMAS (Community Policing in INP). Regarding this strategic basic policy statement, all section of INP are requested to start studying current situation and taking necessary steps of analizing, planning, implementing, and evaluating for development of POLMAS in efforts to change the paradigm of policing from militaristic one to that Cilivilian Police. Within this context INP have decided to lauch serious strategic efforts into capacity building for Civilian Police through POLMAS. In May 2006, INP formally established the Research and Development Center on POLMAS with the President of Police Science College (PTIK) as its Board Chairman as institutional main tasks of which are to study and analyze situation of operation management to identity issues and/or effective ways that are conductive to the T- 437

Code No: T-07-06000-0301-062524 development and promotion the program of POLMAS for the sake of vitalization and precipitation of reform of INP and give advice or make necessary coordination with respect to assistance of domestic and/or foreign donors in relation with development efforts for POLMAS. 7. Priority Defense and Security 8. Objectives To obtain comprehensive and knowledge about modern civilian police system obtain in other country, especially in the field of community policing, and apply/utilize the result to the reform of INP, especially at the institution participants belong to. 9. Activities a. Senior advisor to Chief of the Indonesian National Police b. Long term expert in the field of POLMAS (Community Policing in Indonesian National Police); c. Project on Enhancement of Civilian Police activities (Phase 2); d. Country focused training course in comparative study of Police system for Republic of Indonesia; e. Project on building a society with a sense of safety in Bali; f. Training on Police organization management; g. Training on community policing in Indonesia National Police. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 8,060,000 0 8,060,000 0 0 0 0 0 8,060,000

0 8,060,000 8,060,000

T - 438

Code No: T-07-06000-0301-062525 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Voice Check Security System 6 months National wide Indonesian National Police Indonesian National Police

6. Background and Justification For Indonesian country, terrorism problem is face by state and nation. The result from terrorism activity all this time has discovered that Indonesian not only becoming the target of their action, but also become a place for terrorism recruitment The proceeding effort which is done until January 2007 are, 330 terrorist has been arrested which are 200 persons was process by the cour, 5 persons was executed, and another 5 persons imprisonment for their whole life, and 1 person Dr. Azhari was killed on the trapping process. Poso case on January 11 and 22, 2007, 23 terrorism was caught, 9 persons surrencers, and 13 persons was shot death. The center of processing effort is law enforcement base on law supremacy. The terrorism activity keep continue. Because of the main target of the terrorism, still out there, the operational capabilities and the support for terrorism still huge, the radical problems and the factors that influence are not in a good hand. Also, even though a lot of effort has been doing to avoid the problem, but still not working in appropriate way, because of the low participate from the community in Indonesia. In the hand of the Indonesian National Police Department, they are some problems in interrogating the terrorism suspect. The terrorism are always asnwer the questions which is given by the investigator with No or Forget answer, and the terrorist confession of identity always has more than one identity, including names, address, and their network. There are develop countries in technology that have been developed a liar detector with voice as an object for analysis, so we will know about the truth from the confession by the terrorist with 95% of the accurate level For that reason, the Indonesian National Police consider to have this equipment as a support tool for the comprehensive terrorism investigating 7. Priority Defense and Security 8. Objectives General Objectives: To increase the police capability for new technology authorization in criminal investigating and terrorism activity in Indonesia T- 439

Code No: T-07-06000-0301-062525 Special Objectives: To Develop effectively and efficiency investigation process of the terrorism suspects in Indonesia 9. Activities a. Procurement notebook and voice check security system b. Training how to operate the equipment c. After sales service and upgrade of software for 5 (five) years 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 22,500,000 0 22,500,000 0 0 0 0 0 22,500,000

22,500,000 0 22,500,000

T - 440

State Secretariate

T- 441

T - 442

Code No: T-06-00700-1005-068440 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening the Capacity of Bureau for International Technical Cooperation of the State Secretariate : 36 months : DKI Jakarta : State Secretariate : State Secretariate

6. Background and Justification Historically, the Coordinating Committee for International Technical Cooperation (CCITC), which was established by Cabinet Presidium Decree No. 81/U/KEP/4/1967 dated 5 April 1967, has the task of assisting the President in the formulation of Government policy in utilizing foreign assistance offers and in technically overseeing the implementation of Government policy in the established international technical cooperation policy. Some CCITCs important functions are conducting administration and preparing reports on the utilization of foreign technical assistance and formulating guidance and direction for the effective and efficient use of foreign technical assistance. However, the emergence of several legal instruments have reduced the tasks and functions of CCITC and affected the clarity of its institutional authority. CCITCs membership configuration based on Presidential Decree No: 60/M/1981 does no longer reflect the official title or name, tasks, and functions of organizations sitting as its members. Complication also occurs in internal communication and managerial relation within CCITC itself. Almost in the last 3 decades, CCITC never holds plenary meetings that invite and aare attended by all its 14 members. With this, it can be concluded that understanding and awareness of its members about their existence and involvement within CCITC is becoming blurred. A change has also occurred in the status of Indonesia, which is not only as assistance receiver but also as donor in granting scholarships, experts assignment, and equipment transfer to other developing countries. Considering the above, efforts to revitalize CCITC are becoming an urgent necessity. These efforts can be more effective if they are supported further by endeavors that facilitate the issuance of legal products on the policy, procedure and technical guidance on the management of international technical cooperation. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives General: International technical cooperation can be obtained, absorbed, distributed, utilized, monitored, and overseen in a coordinated, effective, and efficient way. Specific: a. The membership structure of Coordinating Committee for International Technical Cooperation can be reviewed and adjusted to reflect the latest condition; T- 443

Code No: T-06-00700-1005-068440 b. Main tasks, functions, and authorities of CCITC can be reformulated and updated according to present situation; c. The establishment of a formal mechanism describing working relation and coordination among CCITC member organizations; d. The formation and socialization of standard operating procedure on the management of international technical cooperation; e. The Bureau for International Technical Cooperations human resources capacities and supporting facilities can be enhanced in performing its duties as CCITCs secretariate; f. The active participation of CCITCs Secretariate in negotiation, formulation, and implementation of international agreement concerning development and international cooperation. 9. Activities a. b. c. d. e. f. g. h. Review, recommend, formulate, and form CCITCs membership; Examination of , providing advice, and establish the main duties of the CCITC; Study, discussion on revision, and construction of formal mechanism; Analysis, adjustment, and passing of formal standard operating procedure; Training for the CCITC Secretariats human resources in drafting; Procurement and training in the operation of facilities at CCITCs Secretariate; Support to assignment of CCITC Secretariats officials in attending meetings; Socialization and coordinating meetings to implement the Government of Indonesia policies.

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,000,000 0 2,000,000 0 0 0 0 0 2,000,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,000,000 2,000,000

T - 444

Corruption Eradication Commission

T- 445

T - 446

Code No: T-06-09300-0303-062441 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Security and Law Enforcement in Indonesia : 24 months : DKI Jakarta : Corruption Eradication Commission : Corruption Eradication Commission

6. Background and Justification Indonesia is still in the transision phase from an autocratic and centralized country into a democratic and decentralized nation. Even though macro economic and political stability has already been attained, economic growth is still only 4 percent, poverty still needs to be reduced, and good governance has not yet performed satisfactorily. The weak handling of institutional aspects and security matters has inhibitted investors interest and has lowered the quality of public services, especially for the poor. Indonesia has carried out reform steps towards a governance that is more effective and accountable and that allow higher growth. Nevertheless, it still needs to be well implemented in order to realize the plan and the promisses. This program is aimed to strengthening law enforcement and security in Indonesia and to building public trust in the law enforcing apparatus. In addition, this program is also the implementation the 2004-2009 Medium-Term National Development Plan, with the goal of realizing an Indonesia that is secure and peacefull by enhancing the capacity of human resources in overcoming terrorism and cross-border crimes, and developing an environment that is democratic and just by ensuring the enhanced respect for basic human rights and the participation of the people in the decision making process in order to reduce corruption. In February of 2006, the Eradication Commission (EC) was requested to support the policy of the Indonesian Government in: a. Eradicating corruption through capacity/institutional building of the Corruption Eradication Commission and by applying the 2004-2009 RAN-PK (National Action Plan for Eradicating Corruption); b. Applying the 2004-2009 RAN-HAM (National Action Plan on Basic Human Rights); c. Strengthening the operational capacity of the Jakarta Center for Law Enforcement Cooperation (JCLEC). Thereby this program has become a priority of the Government of Indonesia and is a policy of the EC with the aim of enhancing good governance and law enforcement in the third world, specifically through the eradication of corruption, enhancing respect for basic human rights and strengthening the capacity of the law enforcing apparatus in a democratic environment. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives To strengthen law enforcement and security in Indonesia. T- 447

Code No: T-06-09300-0303-062441 9. Activities This project has three main components, namely: a. Components 1: Supporting corruption eradication. The general aim is to support the policy on anti-corruption of the Government and to participate in corruption eradication in Indonesia. The specific aims are: 1) Increasing coordination among the anti-corruption institutions; 2) Increasing the capacity for realizing the strategy/policy in eradicating corruption; 3) To participate in the application of the strategy in eradicating corruption and for increasing its monitoring and evaluation. b. Component 2: To support of the National Police of Indonesia (POLRI) in relation to the 2004-2009 RAN-HAM (National Action Plan on Basic Human Rights). The general aim is to facilitate the implementation of the RAN-HAM 2004-2009, through the provision of guidance in realizing a POLRI that is democratic and professional and that respects basic human rights. The specific aim is to facilitate the effectiveness of applying the POLMAS (Strategy for Policing the Community) by POLRI. c. Component 3: To support the Jakarta Center for Law Enforcement Cooperation (JCLEC). The general aim is to strengthen the capacity of the law enforcing institutions in Indonesia so as to become better in eradicating serious crimes. The specific aim is to support the further development in the JCLEC education and research capacity, in the context of training law enforcers in conducting crime investigations. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 448 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$

: US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$

0 3,120,000 0 3,120,000 0 0 0 0 0 3,120,000

0 3,120,000 3,120,000

Code No: T-06-09300-0303-062442 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Anti-Corruption Clearinghouse : 24 months : DKI Jakarta : Corruption Eradication Committee : Corruption Eradication Committee

6. Background and Justification The Corruption Eradication Committee (KPK) was established on 27 December 2002, on the basis of Act Number 30 of 2002 on the Commission for Eradicating the Penal Action of Corruption, with the aim of enhancing the effectiveness and efficiency in the efforts for eradicating the corruption penal action. In implementing the efforts for eradicating corruption, it is necessary that the KPK involves the entire general public in Indonesia and also the international community. For that purpose, the KPK needs to develop a center for information and documentation that collects, processes, stores, and disseminates information pertaining to efforts for eradicating corruption. This information/documentation center will collect information from various sources, from domestic sources as well as from sources abroad, and to process such information into information that can be easily understood, and to store and disseminate such information through the appropriate communication media. The Anti-Corruption Clearinghouse (hereinafter referred to as ACH) is the center for information, documentation and knowledge on anti-corruption in Indonesia. The information, documentation and education on corruption eradication efforts in Indonesia are provided to the general public in Indonesia and to the international community in general, in the context of mobilzing participation of the Indonesian general public and the international community in the efforts for eradicating corruption in Indonesia. The ACH is also part of the transparency of the KPK to the general public. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives To provide information and documentation and education facilities pertaining to the corruption eradication efforts in Indonesia, specifically to the general public of Indonesia and generally to the international community, in the context of mobilizing the participation of the general public in Indonesia and the international community in the efforts for eradicating corruption in Indonesia. T- 449

Code No: T-06-09300-0303-062442 9. Activities a. First phase, Feasibility Study already carried out 1) Formation of the unit/organization for implementing the clearinghouse; 2) Compiling the procedure and policies for implementing the clearinghouse; 3) Preparation of application system; 4) Preparation of initial information and documentation. b. Second phase, implementation, including the integration with existing IT configuration and that will be developed by the KPK in accordance with the blueprint for developing the KPK information system. c. Third phase, limited trial run d. Fourth phase, opening up public access 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,600,000 0 2,600,000 390,000 0 0 0 390,000 2,990,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,990,000 2,990,000

T - 450

Code No: T-06-09300-0303-062443 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Integrated Information Communication (Public Advocation) : 36 months : DKI Jakarta : Corruption Eradication Committee : Corruption Eradication Committee

6. Background and Justification Corruption Eradication Committees (KPK) mission are carried out through four strategies, i.e. a. Institutional building; b. Penal action against corrupt acts; c. Prevention of corrupt acts; d. Rallying public participation. Whilst institutional building is more of internal subject rather than the publics and that the effectiveness of the pro-active indictements are self-evident, the prevention and rallying participation are believed to need special treatment. Because most of the people do not have sufficient knowledge about what, how or why we must stop the corruption acts iimmediately and at any cost. On the other hand, over the past 2.5 years Corruption Eradication Committee has built credibility through concrete actions, which among others are: 14,000 public complaints received and acted upon; and successful indictments of high profile cases. Indictments which up to 2005 have successfully saved Rp 220 billions of public funds; Building on this credibility, Corruption Eradication Committee sees the need to establish a more sustainable communication program, by launching a massive integrated communication campaign, as an implementation of the Prevention and Rallying Public Participation strategies. 7. Priority Law, Corruption Eradication, and Reform of the Bureaucracy. 8. Objectives To geear up the public awareness on the destructive effect of corruption to the peoples lives is the main objective of the campaign. Hence, the derivatives are set out, i.e.: a. To motivate the youth to actively participate in the anti-corruption movement b. To encourage stay clean behaviour

T- 451

Code No: T-06-09300-0303-062443 c. To disseminate ideas or inspiration on anti-corruption deeds d. Where applicable, also to build knowledge about KPKs role in eradicating corrupt acts. 9. Activities a. Advertising; b. Public relation; c. Brand activation. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 30,000,000 0 30,000,000 4,500,000 0 0 0 4,500,000 34,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 34,500,000 34,500,000

T - 452

Code No: T-06-09300-0303-062444 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Enhancing Corruption Eradication Commission Performance in Combating Corruption : 24 months : National wide : Corruption Eradication Commission : Corruption Eradication Commission

6. Background and Justification Government of Indonesia has a commitment to reduce corruption acts on all level. There are many government program initiatives in term of anti corruption among them a. the Inpres No 5/2004 about the acceleration of the edication of corruption; b. the Formation of the judicial commission to review the achievement the judges; c. the Establishment of the Eradication Commission of Corruption. The Indonesian government recently also ratified UNCAC and Law of Protection of the Witness and whistle blower. Significant challenges continue to exist for the KPK across the entire spectrum of its responsibilities, not the least of which is effective coordination with other Indonesian agencies involved in corruption investigation and prosecution. In its role as the lead agency for the reduction of corruption in Indonesia, KPK seeks MCC assistance in the following activities, which are procurement of equipment and survey on Indonesias National Corruption Perception Index. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives The main objectives of this activity are: a. To increase asset recovery (minimum 25%) from prosecute corruption cases by KPK 4 high-profile corruption cases to be brought into trial in year one, and 6 highprofile corruption cases to be brought into trial in year two; b. To published Indonesias National Corruption Perception Index annual list that consist of CPIs from various sectors and regions in Indonesia in 2007 and 2008. 9. Activities a. Equipments; b. Surveys

T- 453

Code No: T-06-09300-0303-062444 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 9,555,000 0 9,555,000 1,433,000 0 0 0 1,433,000 10,988,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 10,988,000 10,988,000

T - 454

Commission for Supervision of Business Competition

T- 455

T - 456

Code No: T-02-11400-0401-062445 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Study on Competition as Instrument of Indonesian Economy and Law : 36 months : DKI Jakarta : Commission for Supervision of Business Competition : Commission for Supervision of Business Competition

6. Background and Justification Public awareness on Commission for Supervision of Business Competition (KPPU) and competition has been relatively well developed these years. Reports on business actors conduct that is against Law Number 5/1999 have increased every year. Using the economic modeling terms, the increase has reached a trend of exponentional growth. KPPU has two main duties, competition law enforcement both to business actors and to government. The later is completed by submitting a formal recommendation to the government regarding to regulations that intersect with Law Number 5/1999. The actual condition of competition in Indonesia is conducive, supported by the active approach and awareness from the government regarding the strategic values and concept of business competition. The commitment is cemented by the harmonization process and internalization of fair competition values into the majority of government regulations. The Internalization process becomes a simpler task and developed into and effective effort to prevent unfair business competition generated by government regulation. Observing these actual conditions, the value of business competition is essential since government planned a great agenda of regulatory reform by transforming ineffective regulations and have a tendency to develop an open economic system that contain fair competition and market mechanism. Currently, it is necessary for KPPU to arrange programs related to capacity building in order to receive essential inputs from the latest economic condition and its connection to competition issues as Indonesia economic and legal instruments. The program's goal is to achieve valid data regarding the effectiveness of business competition in Indonesia. Another important aspect to be included in program is the study and research concerning competition law and the presence of regulatory reform with competition substance on every economic sector. 7. Priority Employment, Investment, and Exports

T- 457

Code No: T-02-11400-0401-062445 8. Objectives The purpose of this study is to increase capacity building of KPPU in executing daily activities including law enforment to business actors and recommendation to government related to policies that overlap with Law Number 5/1999. KPPU capacity is built in several forms, such as: a. Develop policy analysis capacity through several studies or research of business competition substance and regulatory reform that contains competitions issues; b. Develop a tool or model to measure the effectiveness of bussiness competition in Indonesia; and c. Develop analysis method in implementing industrial strucure transformation from natural monopoly to perfect competition. 9. Activities a. Effectiveness study of the performance of competition law in Indonesia; b. Study on competition effect in the Indonesia oil and gas down stream sector; c. Competition policy assesment and regulatory reform in order to achieve; d. Competition effect study in transportation sector; e. Comprehensive study on realtionship between competition law; and f. Development of Indonesia business competition index. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 962,000 0 962,000 144,000 0 0 0 144,000 1,106,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,106,000 1,106,000

T - 458

Code No: T-02-11400-0401-062446 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Capacity Building on Pro-Competitive Regulatory Implementation of Competition Law : 36 months : DKI Jakarta : Commission for Supervision of Business Competition : Commission for Supervision of Business Competition

6. Background and Justification During 2000-2005 KPPU has recorded problems related to business practices that are against law No. 5/1999. The law enforcement process and providing policy recommendation for the government is performed by KPPU and get a positive respond from the government. Yet, there are still obstacles in carrying out these duties. Internally, the KPPU needs a comprehensive system and qualified human resources. On the other hand, in adequate reference from similar institution in Indonesia, while business competition issue is relatively new in Indonesia, it has been an obstacle to develop staff's skill in doing the research, investigation, examination, advocacy, and institutinal strengthening to perform operational duties of supervising the law No.5/1999. Interm of expiration of the commisioner period of 2000-2005, therefore, the appointed new Commissioners will need support in the field of law, economic, primarily the issues related with competition knowledge. This activities are part of tehcnical assistance from developed/donor countries which is proposed for the first time by KPPU. Cooperation with the developed countries which have some experiences in dealing with bussiness competition, is important because there is no reference from similar institution in Indonesia. To develop its human resources, KPPU needs to have MOU with them in oreder to get transfer of knowledge in business competition. 7. Priority Employment, Investment, and Exports 8. Objectives a. Developing human resourecs capacity of KPPU through pursuing educational degree of master and doctoral (Ph.D) program in developed competition institution, short course on competition and capacity building issues; b. Developing analitical, technical, and managerial skill of KPPU's staff to enchance them to be in charge in various position in secretariate structual organization.

T- 459

Code No: T-02-11400-0401-062446 9. Activities a. Scholarship program for master degree in the subject of law, economic, and any subject related with competition policy issue, for 10 staff of KPPU; b. Scholarship program for doctoral degree in the subject of law, economic, and any subject related with competition policy issue, for 3 staff of KPPU; c. 5 Short term trainings/short course on competition policy/competition law for staff of KPPU; d. 5 Internship program for KPPU staff in competition institution in funding country; e. Comparative study for KPPU commissioner and KPPU staff. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 5,772,000 0 5,772,000 836,000 0 0 0 836,000 6,608,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,608,000 6,608,000

T - 460

Code No: T-02-11400-0401-062447 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Development of Digitalized Library and Integrated Data Base System : 12 months : DKI Jakarta : Commission for Supervision of Business Competition : Commission for Supervision of Business Competition

6. Background and Justification From June 2000 to 2006, the intensity of case handling concerning violation of Law No. 5/1999 and analyzing activities of competition issues with the purpose of providing policy recommendation had been increasing rapidly. The cases are derived from public reports and some cases resulted from initiatives taken by KPPU as a result of business actors monitoring activity, policy and government regulation analysis, and cases taken based on industrial and trade research in national, regional, and international contex. The increasing quantity of cases and research activity has to be followed by increasing quality of KPPUs decree and policy recommendation resulted from competition issues analysis. One crucial thing about cases handling process and research is the existence of accurate, relevant, and reliable data and references. On the other hand, quick respond and accuracy in making the decision is affecting the effectiveness of the decrees and recommendations in influencing business climate in Indonesia. With the existing infra structure in KPPU, the effectiveness and efficiency in providing the required data is barely achieved. Documents, books, and material related with particular regulations, laws, jurisprudences, and data needed for the purpose of investigation, examination, and analysis can only be accessed manually, consequently, it will be a time consuming activity in each process. Insufficient reliable data is also the cause of unqualified research, investigation and examination result. An integrated digitalized system to manage the library and data base will be fruitful for accelerating investigation and analysis process held by KPPUstaff and ensure the reliability and accuracy of the result. On the other hand, the digitalized system will also allow KPPUs stakeholder to get information related with the Law No. 5/1999 and KPPU, hence, supporting the socialization process to KPPUs main stake holder such as, business actors, attorney, law enforcement apparatus, and academician, so as to accelerate the pursuing of KPPUs vision in strengthening healthy business competition. 7. Priority Employment, Investment, and Export

T- 461

Code No: T-02-11400-0401-062447 8. Objectives a. To provide integrated digitalized library and data base system; b. To provide training for operational staff of digital library. 9. Activities Procurement and setting up infrastructure of digital library (hardware, software) 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 45,000 0 0 0 45,000 1,045,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,045,000 1,045,000

T - 462

Indonesian Institute of Sciences

T- 463

T - 464

Code No: T-04-07900-0403-065452 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Assistance in Establishing Research Laboratory for Energy, Environment, and Natural Substances : 36 months : DKI Jakarta and West Java : Indonesian Institute of Sciences : Indonesian Institute of Sciences

6. Background and Justification The demand for gasoline for passenger cars in Indonesia has increased annually by ca. 5%, which is totally covered by processing of fossil crude oil. The availability of fossil crude oil itself and the total reserve to production ratio of fossil crude oil have decreased, for example for Indonesia is approximately 18 years, which is similar to the trend in the other parts of the world. Therefore, there is a need to find alternative energy sources, which are renewable and not being dependent on the limited fossil reserve. Since the oil palm is one of the largest cultivated plantation with a total world production of around 23.5 million tons, it is worth to study its potential and develop a process to convert the palm oil into gasoline-like fuel. Palm oil is not only renewable, it contains also a minimum amount of sulfur or nitrogen, and therefore its use would contribute minimally to the air pollutions, that are caused by NOx or SOx Palm oil contains also a minimum amount of heavy metal, which would give advantages for the process, since it would hardly require a costly treating compared to the processing of fossil crude oil. Mastery of renewable energy technology especially from sustainable sources such as palm oil and other natural substances will be beneficial for economic development. For this purpose, capacity strengthening through establishment of science and technology infrastructure, research collaboration and training of selected scientists becomes essential steps to undertake. 7. Priority Employment, Investment, and Export 8. Objectives a. To develop a catalytic process to convert palm oil into gasoline-like oil and selection of catalyst for the mentioned process; b. To establish a laboratory for energy, environment and natural resources; and c. To enhance the capability of human resources in the area of energy, environment, and natural substances through training and research cooperation.

T- 465

Code No: T-04-07900-0403-065452 9. Activities a. Establish research planning and operation of the project: 1) Research planning: Mid and long-term plans will be formulated. 2) Operations: Advice will be provided for the operation and management of the research center. b. Identify technology transfer through joint research Technology transfer will be realized through joint research in the sectors of environment, advanced materials, chemistry and chemical engineering, and information technology. c. Infrastructures development for research: 1) Experts will be dispatched to train technical personnel. 2) A comprehensive system and a research network will be established for the management of energy and environmental pollution. d. Formulate a Master Plan for the construction of the research center e. Organize and identify operation of an inter-agency consultative council for annual meetings between the two sides 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 3,000,000 0 3,000,000 14,000 0 0 0 14,0000 3,014,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,014,000 3,014,000

T - 466

Code No: T-04-07900-0403-065453 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agency : Collaborative Study and Development of Indonesian and Chinese Herbal Medicines (Phase 2) : 36 months : Serpong, Cibinong-Bogor and Bandung (West Java) : Indonesian Institute of Sciences : Indonesian Institute of Sciences

6. Background and Justification The research program to explore and develop Indonesian Herbal Medicine has been successfully conducted since 2004 through collaboration with foreign research institute. This program consists of investigation and exploitation of Indonesian natural medicine resources, research and development of novel drug entities, technical training, exchange scientists, and laboratory procurement as part of capacity building. From the first phase collaboration, it has been agreed that the targeted diseases be focused on drug development for cardiovascular, diabetes and hepatitis. Significant results have been achieved and being close to commercial development. The activities of the second phase will be focused on continuing the research of the current activities, and completing scientific studies. Standardization of plant preparations is required for the safety, effectively and quality control of phytopharmaceuticals. Further, clinical evaluation will inform the safety and efficacy of the phytopharmaceuticals. In depth study on biologically active components from the herbals is of important to understand the mechanism of action for development of new pharmaceuticals or drugs, including Structure-Activity Relationship study of bioactive compounds. Development of Biomedical instruments to support diagnosis of some diseases is another interest of this second phase activities. Pulse Wave Velocity (PWV) is the targeted instruments to be developed which is used in assessing arterial stiffness in patholophysiology, prognosis, and therapy of cardiovascular diseases. Development of Indonesian herbal medicines needs an integrated and comprehensive study. The success of herbal medicine development is based on the safety, efficacy and quality. China, is well known to have a high scientific reputation on biomedical research as well as its application. The development of Indonesian herbal medicines is justified to be proposed in collaboration with China. 7. Priorities a. Revitalization of Agriculture, Rural, Marines, and Fisheries b. Education and Health

T- 467

Code No: T-04-07900-0403-065453 8. Objectives a. To ensure the efficacy and safety of Indonesian herbals and herbal medicines; b. To support the herbal industry; c. To produce new drug that originate from local plants; and d. To ensure the continues supply of quality raw material. 9. Activities a. In depth study on bioactive compounds from selected herbs as part of collaborative research, human resources capability development and exchange scientists program; b. Development of phytopharmaceuticals by completing scientific data; c. Collaboration on development of biomedical instruments for implementation of trial application of pulse wave velocity meter; d. Development of graduate research study; and e. Addition procurement of small instruments for animal experiment. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 114,000 0 0 0 114,000 1,114,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,114,000 1,114,000

T - 468

Ministry of Cooperatives and Small and Medium Enterprises

T- 469

T - 470

Code No: T-02-0400-0401-064458 1. Project Title 2. Duration 3. Location 4. Executing Agency 5. Implementing Agency : Development of Small and Medium Enterprises (SMEs) Promotion Services : 36 months : DKI Jakarta : Ministry of Cooperatives and Small and Medium Enterprises : Ministry of Cooperatives and Small and Medium Enterprises

6. Background and Justification The social and economic role of the Small and Medium Enterprises (SMEs) in Indonesia are very significant. It provides income generating activities, which helps the effort to alleviate poverty as well as to support other sectors. Unfortunately, despite its numerous roles and importance in the Indonesian economy, the SMEs current contribution has not yet achieved its highest potential, because of lack access to productive resources such as technology, information, capital, markets, and R&D, in some extend also affecting their competitiveness and efficiency. To address these issues, the government realizes the importance of building and strengthening the capacity of SMEs through joint cooperation with other countries, which could provide necessary assistance. 7. Priority Employment, Investment and Export 8. Objectives a. To promote market networking through trading house, sub-contract, business matching, and joint ventures. b. To establish SMEs Development Center and incubator, which provides trainings and consultation on application of appropriate technology including Information & Communication Technology (ICT). c. To provide advisory services on financial, management, and other technical aspects of Exports. 9. Activities a. Access to markets, networking and joint ventures. In order to expand to the new foreign markets for SMEs, the project should be able to provide assistance in the formation of trading house, sub-contract between local and foreign SMEs, business matching, networking, and joint ventures. T- 471

Code No: T-02-0400-0401-064458 b. Innovative entrepreneurship. In order to encourage innovative entrepreneurs, it is necessary to have a center for SMEs development wherein various assistance and facilities could be offered such as incubators, R&D, trainings, access to ICT as well as consultation with experienced experts in various related fields. c. Advisory Services. To advise SMEs on the existing financial support system, management, and regulation on export with necessary technical assistant needed, including trainings, exchange of staff, and expert dispatched. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 17,000,000 0 17,000,000 4,500,000 0 0 0 4,500,000 21,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 21,500,000 21,500,000

T - 472

Ministry of Environment

T- 473

T - 474

Code No: T-01-04300-0504-065459 1. Project Title 2. Duration 3. Location 4. Executing Agency 5. Implementing Agency : Carrying Capacity of Jabodetabek Area and Sumatera Island : 12 months : DKI Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) Area and 10 Provinces in Sumatera Island : Ministry of Environment : a. Ministry of Environment b. 10 Provinces in Sumatera Island

6. Background and Justification Human life depends on the environment. The environment provides all requirement of human being in natural resource. Environment problem emerge caused by various activities of man, for example population growth and science and technological advances in the exploitation of natural resources. Continuous and uncontrolled exploitation make nature become incapable of maintaining its carrying capacity. With such condition, it is imperative that the natural environment be better managed so that it can give the optimal benefit to the current generation as well as to future generations. The condition is seen in two areas, namely in the area of Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) and Sumatera Island. The two regions have high population growth and high exploitation of natural resources. Recently the regional government of Jakarta has raised the issue related to the concept of the Metropolitan area that encompasses Jakarta plus Bogor, Depok, Tangerang dan Bekasi, hence the acronym of Jabodetabek. The population in 2005 is very dense and had reached 23,4 million with in area of 7,315 km2. Demand for land and water have been increasing due to construction of shopping malls and housing complexes. Housing complexes were built all over the city area including on river banks that have violated the regulation thereto. This has caused flooding in several area of the city in the rainy season and creating water shortage during the dry season. Therefore a study is needed to analyze the carrying capacity of water and land in Jabodetabek area. Sumatera Island is the largest island in all of Indonesia (the two larger islands, i.e. Kalimantan and Papua, are only partially in Indonesia). Although its lands are not as fertile as in Java, Sumatera has abundant potential with regard to economic and natural resources, especially in the form of mineral resources, oil, besides forest resources and plantation. But in the last two decades, environmental degradation in Sumatera has reached an alarming level. Forests and the water system were degraded due to illegal logging and uncontrolled exploitation of resources. Many lakes in Sumatera are silted and become shallow; discharge of rives are uneven. Accordingly, power plants, many of which rely on river flows have been disrupted due to water not sufficient to supply the plants. In view of this problem, a study on the carrying capacity of Sumatera is needed, so that development in Sumatera can be done in environmentally responsible and sustainable manner.

T- 475

Code No: T-01-04300-0504-065459 7. Priority Poverty and Disparity Alleviation 8. Objectives a. To analyze spatial use, population pressure and development activities in the Jabodetabek area; b. To determine the carrying capacity of the area; c. To formulate inputs regarding spatial use and development activities in the Jabodetabek area, to prevent further environmental degradation. 9. Activities a. Secondary data collection and literature study regarding spatial use, development activities, environmental degradation, and legal products (especially those concerning spatial plan, land use and development) of the Jabodetabek area; b. Written studies on carrying capacity; c. Field surveys; d. Meeting and seminars, involving related institutions, universities and non government organization; e. Technical expert; f. Drafting and completion of study documents; g. Dissemination and distribution of results of study to related institutions and local government. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 36,000 0 0 0 36,000 1,036,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,036,000 1,036,000

T - 476

Code No: T-04-04300-0504-065461 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Comprehensive Environmental Assessmet (CEA) of Recent Disasters in Central Java and West Java : 10 months : DI Yogyakarta, West Java, and Banten : Ministry of Environment : Ministry of Environment

6. Background and Justification The UNEP has also been supporting the Ministry of Environment (MoE) with the post disaster environmental assessments following the Central Java earthquake that struck on 27 May 2006. Following and additional request from he MoE (letter attached) and donor approval, the UNEP will support the Comprehensive Environmental Assessment (CEA) of the Central Java earthquake, mount Merapi volcanic activity and the West Java Tsunami that struck on 27 July 2006. The CEA will include: a. Development of environmental database (covering coastal vegetation, land-use and cover change, socio economic and risk mapping), b. GPS deformation survey and geological investigations, and, c. Environmental quality mapping and monitoring; The aim of the UNEPs support is to produce a forward-looking assessment that takes into account not only the impacts of the current disasters but the environmental risks associated with new or re-occurring ones with an aim of integrating the broader aspects of disaster risk reduction in other vulnerable areas in Indonesia. 7. Priority Revitalization of Agriculture, Rural, Marine, and Fisheries 8. Objectives The overall objective is to strengthen the capacity of the MoE to assess and report on the environmental impact of natural disaster as well as incorporating environmental concerns into the reconstruction. The activities described in the MoU aim to: Strengthen the capacity MoE and provincial regional Environmental Authorities to comprehensively assess the environmental situation following the earthquakes and tsunami in Central and Southern Java as well as potential volcanic eruption from Mt. Merapi and a selected disaster prone area of Western Java (CEA).

T- 477

Code No: T-04-04300-0504-065461 Expected results: MoE better prepared to undertake environmental assessments after natural disasters and report their findings; Comprehensive environmental assessment of the environmental situation following earthquakes and tsunami in Central and Southern Java as well as potential volcanic eruption from Mt. Merapi and a selected disaster prone area of Western Java (CEA), including sampling and analysis for the CEA. 9. Activities a. Comprehensive Environmental Assessment Preparation b. Comprehensive Environmental Assessment Sampling and Site Visits c. Comprehensive Environmental Assessment Laboratory Analysis d. Comprehensive Environmental Assessment Report e. In addition, UNEP is also intending to assist the CEA field assessment process by providing international consultants specializing in brown and green issues and a seismic risk specialist 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 20,000 0 0 0 20,000 1,020,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,020,000 1,020,000

T - 478

Code No: T-04-04300-0501-065463 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Western Java Environmental Management Project 36 months West Java Ministry of Environment Local Government of West Java Province

6. Background and Justification a. Global Environment Fund (GEF) has approved a grant of US$ 10 million through the Western Java Environmental Management Project, will be disbursed in the form of cash subsidies to eligible compost producers; b. It also hoped that this scheme will assist the development of new production and lead to a significant expansion of the local compost industry that producers resident in DKI Jakarta, Banten province will be targeted for this assistance; c. The achievement of targeted for APL 1 have been already finish, hence the program can be to continued progress to APL 2. 7. Priority Revitalization of Agriculture, Rural, Marines, and Fisheries 8. Objectives a. The main target of compost subsidized program is to reduce total urban solid waste by separating most of the organic material of solid wasted stream and converting to become compos; b. To reduce the disposal urban solid waste volumes to landfill through treatment of solid waste organic materials become of compost; c. One of the strategic component in the effort reduction of influence of GHG. 9. Activities a. Subsidies to compost producers; b. Consulting services; c. Procurement of goods; d. Socialization and monitoring

T- 479

Code No: T-04-04300-0501-065463 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 7,500,000 0 7,500,000 0 1,125,000 0 0 1,125,000 8,625,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 8,625,000 8,625,000

T - 480

Code No: T-04-04300-0504-065464 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agencies : : : : : Indonesian German Environmental Program Phase III 36 months Central Java, East Kalimantan, DI Yogyakarta Ministry of Environment a. Environmetal Impact Control Agency, Central Java b. Environmetal Impact Control Agency, East Kalimantan c. Environmetal Impact Control Agency, DI Yogyakarta

6. Background and Justification Small and medium sized enterprises cannot use or can only insufficiently use the legal and institutional conditions, instrument and servuces for the promotion of ecoefficiency measures toward their sustainable development. a. Insufficient environmental economic instruments and insufficient law enforcement limit the incentives for the industrial sector to implement pro-actively environmental strategies; b. Insufficient participation of the local population and municipalities in national measures inhibits the success of environmental protection and rehabilitation measures; c. Harmful living and working conditions due to pollution and excessive usage of resources lead to the deterioration in relation to the social componet of sustainable development. 7. Priority Empoyment, Invesment, and Export 8. Objectives Small and medium sized enterprises in the programme area use the improved institutional conditions, instruments and services to promote eco-efficiency for the improvements of their enterprises and in the surrounding areas. 9. Activities Indonesian German environmental Program (ProLH) is a policy programme and is using a multi level approach to reach its overall goal and individual results. The core of the programme is policy development on national and regional level together with the State Ministry of Environments as its main partner, but using multi-stakeholder participation to integrate other ministries and regional organizations and offices at the national and regional levels, mainly in Central Java. This part of the programme is represented by component 1: Environmental policy advice on industrial environment protection. T- 481

Code No: T-04-04300-0504-065464 To achieve the policy improvements, ProLH is using on the intermediate level organizational development of institutions and organization like IPCP and other in the Cleaner Production Network in particular for effective capacity development at all levels of the Government and in the private sector addressing industrial environmental management in small and medium scale industries. This strategy is represented by component 2: Promotion on eco-efficiency for the small and medium enterprises. The regional integration of all strategies at the national level (policy frame work improvement), on local level in the individual companies and in industrial cluster are developed in component 3: Integrated regional environment management. Here pilot project are established and the multiplication and application of instruments of cleaner production and policies and incentives are implemented, evaluated with all participating stakeholders and distributed to all relevant stakeholders. Through clear responsibilities and cooperation mechanisms, the constructive cooperation of each stakeholder is guaranteed. Stakeholder of the private sector receives incentives for pro-active environmental related actions through more reliable law enforcement, economic instrument, and promotions. Rehabilitation programmes and individual cooperation measures lead to direct improvements of environmental condition in the working place and in the living environments. This will improve the working and living conditions of the population reached by the programme. The mainstreaming mechanisms produced particularly in the Third Project Phase (2008 2011) would lead to a further dissemination of the activities and lessons learn and will eventually lead to the improvement of the entire population of Central Java (target group). 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL T - 482 : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,600,000 0 6,600,000 76,000 0 0 0 76,000 6,676,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 6,676,000 6,676,000

Code No: T-04-04300-0590-065465 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agencies : Environmental Governance and Sustainable Livehood Project (EGSLP) : 84 months : Sulawesi : Ministy of Environment : Provincial Government

6. Background and Justification The EGSLP will invest up to Can$ 19.667 million over a period of seven years. The Program aims to contribute to the creation and protection of sustainable livelihoods through equitable access to, and sustainable management of, natural resources and the environment. Eventually, the Program hopes to have a wider impact throughout Sulawesi and beyond, through sharing of accumulated experience and knowledge on environmental governance innovation and demonstrations of successful local approaches to sustainable natural resource management. Overall, the Program, using an eco-systemic and watershed-based integrated approach, will work in selected watersheds in two provinces on the island of Sulawesi. These watersheds will be selected based on criteria including poverty levels, severity of natural resource management and conflictive environmental issues, level of interest by local stakeholders (including district governments) and level of watershed prioritization by provincial government and by national government. Within larger watersheds, particular ecosystems may be selected. Within each watershed/ecosystem, the Program will then also select specific villages and clusters of communities. 7. Priority Revitalization of Agriculture, Rural, Marine , and Fisheries 8. Objectives The Program Objectives is to assist the government and the people of Indonesia in the creation and protection of sustainable livelihoods through equitable access to, and sustainable management of, natural resources and the environment. The expected impact is reduces poverty through increased sustainable livelihood opportunities and well being for poor rural men, women, boys and girls in selected watersheds in Sulawesi. The Program also aimed to improve environmental and natural resource governance in selected watersheds in Sulawesi and demonstrate negotiated and sustainable solutions.

T- 483

Code No: T-04-04300-0590-065465 9. Activities a. Capacity buildings of key stakeholders, involving men and women, to take action on priority environmental and NRM issues affecting communities in selected watersheds, both at the community and watershed levels; b. Development and implementation of NRM solutions on a partnership basis by key stakeholders, involving men and women, at the community and watershed levels. c. Strengthened natural resource governance structures and processes, institutionalized by village, district and provincial governments: d. Adaptation of structures and processes for improved environmental and NR governance, by government and/or other authorities, both at community and watershed levels, and policy linkages to these local innovations. e. Watershed and Ecosystem Fund f. Environmental Governance Awareness Fund

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 16,500,000 0 16,500,000 0 0 0 0 0 16,500,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 16,500,000 16,500,000

T - 484

Code No: T-04-04300-0590-065586 1. Project Title 2. 3. 4. 5. Duration Locations Executing Agency Implementing Agency : Institutional Capacity Development : 36 months : National Wide : Ministy of Environment : Various Institutions Building on Sustainable

6. Background and Justification Sustainable development can be reach if there is a balance in using and maintaining various aspects that are economy, social, and environment. The management of natural resources is brought to bear on improving the system of management and to make higher economy gain in long term. Natural resources can be used for development without making it worse and the future generations can still luxuriate. Nowadays, sustainable development is one of the most important issues in development. After decentralization, local governments are in front of line in order to make sustain natural resources. The need of capacity building in field of environment is very high, because in the past the management of environment is very centralistic. 7. Priority Education and Health 8. Objectives a. To improve the capacity building of central and local governments in field of management of environment and natural resources. b. To develop community understanding in term of participation in environment management c. To develop policy in environment management for sustainable development 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution

T- 485

Code No: T-04-04300-0590-065586 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Other Sub Total TOTAL : US$ 0 : US$ 100,000,000 : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 100,000,000 0 0 0 0 0 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 100,000,000

: US$ 100,000,000

T - 486

Ministry of Women Empowerment

T- 487

T - 488

Code No: T-06-04700-1105-061467 1. Project Title 2. Duration 3. Locations 4. Executing Agency 5. Implementing Agencies : Gender Accountability Reform Support : 36 months : East Kalimantan, Central Kalimantan, North Sulawesi, Central Sulawesi, and South Sulawesi : Ministry of Women Empowerment : Local Goverments

6. Background and Justification A gender responsive governance is one precondition of Good Governance. In order to decrease/eliminate gender inequality in all aspects of development, Indonesia has decided Gender Mainstreaming Strategy as one strategy of Indonesian Development. The realization of gender responsive governance should be reflected in every policy, system and performance accountability mechanism. Yet, gender equality has not been included as performance indicator. Therefore, it is crucial to conduct Gender Accountability Reform Support in policy, system and accountability mechanism so that gender equality inclusion as performance indicator. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. To develop system requirements for gender equality as a performance indicator b. To set best practice standards for gender equality c. TO develop process and mechanism for participatory monitoring, evaluation and social control for gender equality standards d. To strengthen stakeholder groups and networks for gender equality standards e. To optimalize qualitative and quantitative sex-disaggregated data collection 9. Activities a. Identification of gender inequality b. Develop and improve sex-disaggregated data from provinces and districts for gender equality measure c. Assess and establish data collection requirements (sample size, frequency, cost etc) d. Work with sectors to obtain sex-disaggregated programatic information (priority sectors) e. Work with sectors to develop and support gender equality information plans and develop gender equality performance indicator T- 489

Code No: T-06-04700-1105-061467 f. h. i. j. k. Research and examine alternative approaches for measuring gender equality Together with sectors to develop guidelines for participatory evaluation Encourage the information disesemination of sectoral programs Develop a web-based reporting of key performance data on public service delivery Opinion polling on whether gender inequalities are: 1) reduced; 2) increased; 3) unchanged

g. Identify best practises and key problems

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

T - 490

Code No: T-06-04700-1105-061584 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agencies : Improvement of Woman Participation in Development Program : 36 months : National Wide : Ministry of Women Empowerment : Various Institution

6. Background and Justification An understanding for concept of gender alignment and fairness is very limited in all levels of community. This poor understanding also happen in planning and implementing development institutions, so the gender concept is not implemented and integrated in policy, program and activity of development. The implication is that participation of women in development planning and implementing is very low. This is the reason why needed empowering women in order to improve their participation in various fields of development. Women empowerment in national development programs can be done by improving quality and role of women in public policy process and portfolios. Other empowerments are to make lower women violent, to review laws and regulations that have bias gender and discriminative to the woman, and to mainstream gender. 7. Priority Poverty and Disparity Alleviation 8. Objectives a. To improve gender mainstreaming in institutions. b. To align the policy of improving women quality and children in various fields of development. c. To improve the participation of women in development programs. 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops on women participation in development program c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution

T- 491

Code No: T-06-04700-1105-061584 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 50,000,000 0 50,000,000 0 0 0 0 0 50,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 50,000,000 50,000,000

T - 492

Ministry of Administrative Reform

T- 493

T - 494

Code No: T-06-04800-0101-062525 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Support for Good Governance (Phase 3) : 36 months : National wide : Ministry of Administrative Reform : Ministry of Administrative Reform

6. Background and Justification In the first phase (oriented phase) of the above mentioned project (2001 2003), development and testing of several instruments for public service delivery improvements and civil service reforms have been carried out. Based on the result of the first phase of the project, the second phase was carried out to consolidate and disseminate the use of such instrument. It is found that such public service delivery improvement and civil service reforms instruments were very useful. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives Goal Purpose : A clean responsible and responsive government provides best services to the people : Relevant institution, supported by Ministry for Administrative Reform apply concepts which involve client and the public in improving public services

9. Activities Specific activities during this Phase-3 the project are : a. To develop a strategy aiming at achieving a clean and responsible government by addressing several aspects of the administrative system, like institutional arrangement, control and supervision as well as human resources b. To develop policy in certain aspects of the administrative system which influence the achievement of a clean and responsible government c. To provide guidance to relevant institutions on central and local level on how to improve services quality by involving clients and the public d. To design public education programs in order to increase the awareness on peoples rights and obligations in receiving public services

T- 495

Code No: T-06-04800-0101-062525 e. To provide training and international comparison opportunities for civil servants involved in the project f. To explore into alternative institutional arrangements for organizational units on central and local level

10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,500,000 0 2,500,000 150,000 0 0 0 150,000 2,650,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 2,650,000 2,650,000

T - 496

Code No: T-06-04800-0101-062585 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Strengthening Good Governance on Public Services : : : : 36 months National Wide Ministry of Administrative Reform Ministry of Administrative Reform

6. Background and Justification There are some aspects to be fulfilled in order to realize good governance. One of those is the improvement of bureaucracy. This activity can make the service for community more productive and conducive. The quality of public services is very low because the bureaucracy, more specific is government officials, are not discipline and tend to misuse their tasks and duties. Generally, the quality of human resources of bureaucracy is low, the capacity of institutions is not effective and efficient, and the applying of information technology (e-services) is not optimal. These reasons make the services from public institutions are disappointed. In order to make better the public services the bureaucracy reform is urgent to accelerate by applying the regulation in public services. Bureaucracy reform involves accelerating to realize conditions of professionalism of government officials which are professional, credible, accountable, participative, transparent, and free from corruption, collusion, and nepotism (KKN). There are some priorities in order to improve the quality of public services which are: capacity of institutions, quality of human resources, and applying e-services. 7. Priority Law, Corruption Eradication, and Bureaucracy Reform 8. Objectives To improve the public services that is professional, credible, accountable, participative, transparent, and free from corruption, collusion, and nepotism (KKN). 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution

T- 497

Code No: T-06-04800-0101-062585 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 50,000,000 0 50,000,000 0 0 0 0 0 50,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 50,000,000 50,000,000

T - 498

State Ministry of Public Housing

T- 499

T - 500

Code No: T-03-09100-0601-066470 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Technical Assistance for Development of Low Cost Multi Storey Rental Housing in Big and Metro Cities Project : 60 months : DKI Jakarta : State Ministry of Public Housing : Deputy Formal Housing, State Ministry of Public Housing

6. Background and Justification Indonesia is facing a high rate of population growth, which leads to a high rate of annual housing demand which is more than 800.000 housing units/year. Social problems are commonly occurred in urban slums especially in major cities. It is very important to consolidate housing development programs to meet this pressuring demand, and to tackle social and environmental problems which are mainly taken place at the major cities in Indonesia. However these strategies are not cheap, there is huge number of fund to be budgeted by the government. Taking all fund alone almost impossible for Indonesia Government. Therefore, proposing such loan or grand from overseas would be the most appropriate choice.

7. Priority Infrastructure

8. Objectives To promote the function of high-rise multi-family housing in major cities as it is the key strategy in reducing the number of housing backlog and to prevent urban sprawl and increasing the number of slump area at the major cities.

9. Activities a. To prepare Development of Low Cost Multi Storey Rental Housing in Big and Metro Cities b. Feasibility Study

T- 501

Code No: T-03-09100-0601-066470 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

T - 502

Ministry of National Development Planning

T- 503

T - 504

Code No: T-02-05500-0101-064476 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Capacity Building in Trade Liberalization Analysis : 12 months : DKI Jakarta : Ministry of National Development Planning : Ministry of National Development Planning

6. Background and Justification Globalization may offer some benefits to the countries that are involed. Those are reductions in the barriers to trade, improvement in market efficiency, and reductions of price of tradable goods. However, trade liberalization may raise some drawbacks, such as some costs of openness and imbalanced gains from trade liberalization. One of the costs is reducing opportunities of domestic agents for learning by doing, because the possibility of trade measures to protect strategic industries decreases. Another cost is an increase in terms-of trade volatility, which has a consequence of increasing GDP volatility. The critics of trade globalization claim that developed countries have pushed poor countries to eliminate trade barriers, while they keep their own barriers preventing developing countries from exporting their export commodities, such as agricultural products. Indonesia is currently activel to take part in many trade liberalization processes. Some regional and bileteral agreements have been undertaken by Indonesia, but the impacts of those agreements or arrangement on Indonesia economy have not been carefully analyzed and evaluated. It is undoubted that there is an urgent need to build the capacity of Indonesian officials in analizing the impacts of trade liberalization on the economy and related sectors. The improved capacity on evaluation and analysis of trade liberalization will be very beneficial for increasing gains from trade arrangement and for the purpose of trade policy reform. 7. Priority Employment, Investment and Export 8. Objectives a. To build the capacity of government officials in analyzing and evaluating the impacts of trade liberalization to the country b. To get other countries's experiences in analyzing and optimizing gains from trade liberalization c. To analyze the advantages and disadvantages of multilateral, regional, and bilateral trade agreements

T- 505

Code No: T-02-05500-0101-064476 9. Activities a. Providing theoretical frameworks of international trade and trade liberalization b. Sharing other countries experiences in trade liberalization analysis c. Providing advanced courses on analyzing the various impacts of multilateral d. Providing some courses on analyzing the potentials and barriers of Indonesia e. Providing some visits to several institutions involving in trade liberalization 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,000,000 0 1,000,000

T - 506

Code No: T-02-05500-0101-064477 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Improving the Indonesian Trade Policies on the Issue of Trade for Development : 10 months : DKI Jakarta : Ministry of National Development Planning : Ministry of National Development Planning

6. Background and Justification Nowdays Indonesia has actively involved in the globalization process. Globalization has created vast new opportunities for Indonesia to make economic and social progress. The ability to import ideas, investment goods, and intermediate inputs from advanced has helped to boost the Indonesian economic growth. The issue of trade for development needs the Indonesian Government actions and international supports which are needed by poor people in order to : a. Exploit market access opportunities b. Manage adjustment costs c. Improve quality of growth Related to that issue, the Doha Development Agenda also proposed the issue of trade for development which covers the issue, such as agricultural subsidies, market access, and trade facilitation. 7. Priority Employment, Investment, and Exports 8. Objectives a. To make a policy analysis on trade for development in Indonesia b. To get other countries' experiences in implementing trade for development 9. Activities Research on the impact of trade for development policy

T- 507

Code No: T-02-05500-0101-064477 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,000,000 0 1,000,000

T - 508

Code No: T-05-04300-0504-065462 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agencies : Environmental Sector Support Program II : 24 months : National wide : National Development Planning Agency (Bappenas) : a. Ministry of Environment (KLH) b. National Development Planning Agency (Bappenas) c. Ministry of Home Affairs (Dalam Negeri) d. Ministry of Energy and Mineral Resources (ESDM)

6. Background and Justification As a sequence of the 1997 economic crisis, Indonesia has been subject to mounting economic, social, and political pressures. The initial stages of these politically, economically, and socially sensitive processes have been unavoidably stressful to the natural resources of the country particularly forest and biodiversity resources because of accelerated rates of extraction. Poverty in Indonesia is characterized by regional disparities (Eastern Indonesia is poorer) and is generally more rural than urban, although there are areas of intense urban poverty. Of the 37.3 million poor people in Indonesia, 12.2 million live in urban areas, and 25.1 million in rural areas. The rural poor are mainly dependent on forest, freshwater and marine resources for their livelihood (e.g. fishing, forestry, collection of forest and marine products). With most of the rural population dependent on some form of farming, land degradation is threatening an increasing number of people. The linkage between poverty and environment is clearly recognized in the PRSP. The state of the environment in Indonesia is generally described as deteriorating and is characterized by serious problems in relation to urban and industrial pollution in some of the growth areas of the country and by serious problems related to natural resources and ecosystem degradation enlarge parts of the country. Although Indonesia is producing State of the Environment reports, the monitoring of environment indicators is very limited, meaning that actual knowledge of the status is based on general impressions. Despite this, it is clear that the magnitude of environmental issues in Indonesia is overwhelming. It includes deforestation, loss of biodiversity, coral reef degradation, fisheries depletion, land degradation, agricultural productivity loss, rural poverty, water resources, depletion, flooding, irrigation infrastructure degradation, and not the least overwhelming air, water and land pollution problems in urban and industrial areas. In 1999, the Government undertook a major decentralization shift where the political and legislative authority and financial autonomy were largely devolved from central to the district governments. The responsibility for natural resources management and the environment is now largely with the district governments a responsibility with in built conflict of interests as natural resource exploitation also represent a significant source of revenue for local governments, but also with great potential for implementing community driven environmental management that realistically addresses problems and solutions identified locally. T- 509

Code No: T-05-04300-0504-065462 7. Priority Poverty and Disparity Alleviation 8. Objectives The Environment Sector Program (ESP) 2 Development Objective is derived from ESP 1 and builds on Government of Indonesias policy to approach environmental as a significant element in securing economic development and poverty alleviation. The main objective is to strengthen the implementation of sustainable environmental management in support of improved livelihoods, and the intermediate objective are: a. Improved institutional capacity at the national level to support cross-sectoral and decentralized environmental management. b. Continued economic growth with sustainable level of energy consumption contributing to improved environmental quality. c. Reducing poverty and improving local governance and sustainable development in rural areas. 9. Activities ESP Phase 2 will have the following components: a. Support to public sector institutions b. Support to energy efficiency in the private sector c. Support to decentralized natural resources management and renewable energy 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 30,000,000 0 30,000,000 0 0 0 0 0 30,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 30,000,000 30,000,000

T - 510

Code No: T-03-05500-0101-066473 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agency : : : : : Feasibility Study for Jatiluhur Water Treatment Plant 12 months West Java, DKI Jakarta Ministry of National Development Planning Ministry of National Development Planning

6. Background and Justification As the community becomes more aware about the importance of safe drinking water, the demand for good quality water provision service is becoming higher. However, on the other hand, the quality and quantity of ground water is decreasing, while PDAMs service coverage is still limited. Environmental pollution has contributed in this situation. A study shows that every 1 mg of BOD addition to water body can increase drinking water production cost up to Rp.9,17,- /m3. It means that if there is no adequate intervention to improve the quality of water body, the cost to provide safe drinking water will be very expensive in the future. A potential solution that can be done is to build a water treatment plant at the main water source and then convey the potable water to nearby cities. The Jatiluhur Dam is the most suitable source of raw water for DKI Jakarta and its surrounding cities in term of quantity and quality. Thus, it could be economically feasible, to build water treatment plant at Jatiluhur and distribute the drinking water to DKI Jakarta and its surrounding cities. This is due to the very high demand of drinking water for domestic and industrial area at these cities. 7. Priority Infrastructure 8. Objectives a. To conduct a study for assessing the availability and feasibility, from technical and economical aspects to convey potable water from Jatiluhur to DKI Jakarta and its surrounding b. To prepare institutional arrangement c. To observe the possibility of Public Private Parterships (PPP) involvement

T- 511

Code No: T-03-05500-0101-066473 9. Activities a. Conduct survey to possible customers b. Develop the financial and institutional arrangement c. Evaluate the possible partnership 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 2,400,000 0 2,400,000 600,000 0 0 0 600,000 3,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 3,000,000 3,000,000

T - 512

Code No: T-01-05500-0106-067474 1. 2. 3. 4. 5. Project Title Duration Locations Executing Agency Implementing Agency : Local and Regional Economic Development : 36 months : National wide : Ministry of National Develoment Planning : Ministry of National Develoment Planning

6. Background and Justification Local and Regional Economic Development in Indonesia still suffers from several constraints such as the limited capacity of local governments, the limited capacity of SME as the largest proportion of the business community in Indonesia, and the limited partnership among business entities and between public and private sectors (Public Private Partership). Therefore, in order to enhance local and regional competitiveness, there is a need for an integrated approach of local and regional economic scheme that focuses on SME capacity enhancement, local goverment capacity enhancement and partership enhancement for business development. 7. Priority Employment, Investment, and Export 8. Objectives To enhance the local and regional competitiveness through the capacity building for SME and Local Government, and the partnership for business development. 9. Activities a. Extension of RED 1) Further support for SME through cluster development, value chains promotion, business start-ups support and access to finance 2) Further strengthening of the business environment in Solo Raya 3) Further strengthening of the inter district cooperation in Solo Raya and facilitate the consolidation of its coordinating body BKAD 4) Further institution building of the Regional Economic Promotion Agency 5) Facilitate the independent institutionalization of an RED expert pool 6) Facilitate the socialization and implementation of a national RED Strategy 7) Facilitate and consolidate the establishment of a national umbrella for regulative Impact Assessment (RIA)

T- 513

Code No: T-01-05500-0106-067474 8) Facilitate the scaling-up of RED tools such as FEDEP, PACA, value chains promotion, business start-ups and created an information pool b. Expansion of RED 1) Identification of Regions who wants to apply RED strategies and tools. 2) Initiate support further trainings of RED facilitators and also ToT 3) Support initiatives for inter district cooperation 4) Support the implementation of the national RED strategy on regional level 5) Join forces with other regional initiative on SME support and good governance 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 8,450,000 0 8,450,000 0 0 0 0 0 8,450,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 8,450,000 8,450,000

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Code No: T-06-05500-0101-068475 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Technical Assistance for Strengthening Capacity to Improve Aid Effectiveness : 12 months : DKI Jakarta : Ministry of National Development Planning : Deputy for Development Funding, Ministry of National Development Planning

6. Background and Justification The current portfolio of overseas development assistance of Indonesia consists of 182 programs and projects with a total commitment of $15.3 billion, of which $9 billion had not yet been disbursed by the end of 2005. While working to reduce the national debt stock from 50% of GDP to 31.8% of GDP in 2009, the Government will strengthen partnerships with multilateral and bilateral development institutions to achieve the goals of the national development plans and strategies. It is the intention of the Government to focus future foreign development assistance on four thematic areas of the national development plan: (i) education and health; (ii) job creation, investment and export generation (including infrastructure development); (iii) revitalization of agriculture, fisheries and rural development; and (iv) poverty reduction. Reviews of the implementation of the on-going portfolio of aid assisted projects in Indonesia have identified several constraints to increasing aid effectiveness. Problems include: a. Weaknesses in planning, both within BAPPENAS as well as in the technical departments; b. Weaknesses in coordination, data-base and manpower, result in a lack of synergy among projects, overlapping programs and a lack of clear outputs; c. The lack of a clear strategy for foreign borrowing; d. Weaknesses in preparing project proposals; e. Costs escalation due to the inadequacy of planning for implementation: 1) Weak application of project readiness criteria; 2) Insufficient allocation of counterpart Rupiah within the national budget; 3) Weaknesses in monitoring and evaluation; 4) High levels of leakage, especially in the procurement of goods and services. f. Dominance of Donor and Creditor-driven project initiatives 1) Project proposals coming from donors or consultants; 2) Low levels of local content, especially in bilateral projects. 3) Weaknesses of government on negotiating skills

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Code No: T-06-05500-0101-068475 The Government is committed to address these weaknesses. The Paris declaration provides a strategic reference for formulating a national Action Plan to strengthen aid effectiveness. This TA is considered to be a leading initiative by the government to address weaknesses in GOI systems and capacity for programming, monitoring and evaluation of development assistance. The five key principles of the Paris Agreement that form the basis for improving aid effectiveness are: (i) increasing national ownership; (ii) alignment of donor assistance with national development strategies, institutions and procedures; (iii) harmonization of implementation systems; (iv) managing for results; and (iv) working with mutual accountability. Government Regulation Number 2 of 2006 specifies the roles, responsibilities and institutional mechanisms for coordination of international loan and grant assistance in Indonesia. While many sectoral departments are involved in implementing programs and projects supported by international development assistance, BAPPENAS and the Ministry of Finance are the two government institutions that play central coordinating roles in the program cycle for all international development assistance in Indonesia. There is a critical need to strengthen the approach to national coordination of development assistance and to establish a supporting information system to provide decision makers with information on development programs on a timely basis. The Deputy for Development Funding Affairs plays a key role in all phases of the project cycle in programming, monitoring and evaluating development assistance. The Deputy is comprised of five directorates with a total staff of 36. There is a need to strengthen core competencies within these five directorates to support initiatives to improve aid effectiveness. Key competencies requiring attention are: (i) strategic planning; (ii) economic and financial evaluation of projects; (iii) negotiation skills; (iv) performance-based budgeting; and (v) monitoring and evaluation. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives The primary output of the technical assistance will be an Action Plan to improve aid effectiveness in Indonesia. The Action Plan will be prepared based on a series of diagnostic assessment of the existing regulations, procedures and practices applied in the program/project cycle for development assistance in Indonesia. The Action Plan will be defined to: a. Strengthen planning, coordination and ownership of development assistance programming; b. Align development assistance with national development strategies, institutions and procedures; T - 516

Code No: T-06-05500-0101-068475 c. Better harmonize development assistance; d. Strengthen management, monitoring and evaluation arrangements to achieve results; and Build mutual accountability of donors and GOI for development results. In addition to the Action Plan, the technical assistance program will also prepare an Operations Manual for the Office of the Deputy for Development Funding Affair to Improve Aid Effectiveness. A results-oriented performance assessment framework and Management Information System (MIS) will comprise a component of the Operations Manual and will be characterized by (a) clear definition of objectives in terms of expected results; (b) availability of monitorable outcome and output indicators, baseline data, and timebound targets; (c) monitoring and evaluation arrangements and capacity; and (d) use of information for decision-making. The TA will also support staff training to establish the institutional foundation for implementation of the Action Plan. Training will include short-term domestic and international training, workshops on policies, procedures and practices to increase aid effectiveness. Priority will be given to training on topics related to the project cycle, including strategic planning, appraisal, negotiation, performance-based budgeting, monitoring and evaluation and management information systems. Attention will also be given to basic skills training in data processing and English language skills. It is expected that some 30 staff members will participate in short-term training courses while an estimated 100 staff will participate in in-house training and other workshops on policies, procedures and practices relating to aid effectiveness. The program will also support short-term visits for senior officials to at least two Asian capitals to observe best practices in aid effectiveness.

9. Activities Consultants will support BAPPENAS in the preparing diagnostic reviews and to formulate the Action Plan, Operations Manual and MIS. The consultants team will be composed of national specialists in economics, public administration, monitoring and evaluation, MIS, training and related fields. The team will provide advice and assistance to the five directorates reporting to the Deputy of Development Funding Affairs on issues relating to aid effectiveness in accordance with the Terms of Reference. The first step in defining the Action Plan will be the completion of diagnostic reviews. The diagnostic reviews to be carried out will provide the basis for definition of a five year Action Plan. The Operations Manual to Improve Aid Effectiveness will be prepared with reference to the Action Plan, and will be focused on operational systems to be utilized within the Office of the Deputy for Development Funding Affairs. T- 517

Code No: T-06-05500-0101-068475 The MIS will be a key component system of the Operations Manual. The results of the diagnostic reviews and draft reports will be presented for discussion by a broad range of stakeholders. Training activities will be conducted during the 18 months implementation period. International short-term training will be at internationally recognized institutions. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 800,000 0 800,000 200,000 0 0 0 200,000 1,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 800,000 200,000 1,000,000

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Code No: T-06-05500-0101-068478 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Electronic Government Procurement Infrastructure Development Technical Advisory Projects : 48 months : DKI Jakarta : Ministry of National Development Planning : Ministry of National Development Planning

6. Background and Justification The Government of Indonesia is looking forward to carrying out the procurement process based on the supremacy of transparency, openness, fairness, effectiveness, efficiency and accountability, that are the main underlying principles for the Government to establish 3 (three) main agendas for procurement reform. One of these agendas is to develop electronic government procurement (e-GP) and to implement it in the near future. The government believes that the e-GP plays an important role for significantly enhancing transparency and accountability of a large proportion of government expenditures, which involve thousands of projects and acquisitions and millions of transactions each year, thereby reducing opportunities for corruption. Lack of transparency reduces the reliability of the procurement process itself, leading to public mistrust in the process, and makes the procurement process much more vulnerable to misuse. A side from enhancing transparency and competitiveness, the undisputed benefits of an e-procurement system are increasing the efficiency of government procurement administration as well as impelling the competition for government supply concurrently producing government saving. Savings of this order would be of major budgetary significance to Indonesia. Ultimately, the e-GP can have a big positive impact to economic development and competitiveness. Therefore, the Government urges greater transparency in government procurement as the highest current priority of the Government. 7. Priorities Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. To accelerate a vigorous national business environment; b. To attain a more effective allocation of the national budget; c. To control corruption practices; d. To enhance the competency of procurement professionals and the awareness of general public; T- 519

Code No: T-06-05500-0101-068478 9. Activities a. Consultancy service in order to develop and extend the system in several regions/locals; b. Procuring ICT hardware and software as needed; c. Trainings/seminars. 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 6,000,000 0 6,000,000 0 0 0 0 0 6,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 6,000,000 0 6,000,000

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Code No: T-06-05500-1004-068481 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Human Resource Management for Capacity Building of Government Officers : 36 months : National wide : Ministry of National Development Planning : Various Institutions

6. Background and Justification In order to reach good and clean governance, the bureaucracy performance has to create the adequate condition for fulfilling the general public needs, improve service quality, and decrease abuse of authority by governmental officers. This requires improved quality of human resources that provide public services. One manner to increase service quality is by training (such as structural, functional, and technical training) of government officers. With the training, the professionalism of government officers can be enhanced and public services will progressively be improved. 7. Priorities a. Law, Corruption Eradication, and Bureaucracy Reformation b. Education and Health 8. Objectives To improve quality of human resource of government officers in providing better public services. 9. Activities a. Improvement human resources through studies for Master/Doctor degrees b. Training (short term and long term) c. Human resources database management d. Comparative study

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Code No: T-06-05500-1004-068481 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 30,000,000 0 30,000,000 0 0 0 0 0 30,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 30,000,000 30,000,000

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Code No: T-06-05500-0101-068482 1. Project Title 2. 3. 4. 5. Duration Location Executing Agency Implementing Agency : Capacity Building to Strengthening Government Institution : 36 months : National wide : Ministry of National Development Planning : Various Institutions

6. Background and Justification Governance encompasses institutional as well as organizational factors. Governance affects policy making, by the government as well as by the people. The implementation of good governance will effectively and efficiently resolve problems. Good governance can be attained by ensuring transparency, accountability, effectiveness and efficiency, upholding of the supremacy of the laws, and empowerment of the people. In order to attain that, it is necessary to take policy measures pertaining to the strengthening of the institutions and system, enhancing of the quality of human resources and enhancing the competence of government officers, and to the strengthening of effective supervision and control. Such policies are expected to increase the quality of public services. 7. Priority Law, Corruption Eradication, and Bureaucracy Reformation 8. Objectives a. To improve capacity building of government institutions b. To enhance the competence of civil servants (government officers), at the central and regional levels. 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops c. Long-term and short-term experts d. Formal education for government officers

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Code No: T-06-05500-0101-068482 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 20,000,000 0 20,000,000 0 0 0 0 0 20,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 20,000,000 0 20,000,000

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Code No: T-06-05500-0101-068483 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Economic Policy Advice 24 months DKI Jakarta Ministry of National Development Planning Deputy Minister for Poverty Alleviation, Employment and SME Policies

6. Background and Justification Indonesia is currently undergoing a transition of both its economic and political systems, which has temporaly disrupted its development trajectory of rapid, stable and incluseive growth and poses severe challenges to social coherence and national unity. Mangeing the complex transition of both economic and political systems requires strong strategy development and policy making capacitites at Bappenas, particularly at Deputy Minister for Poverty Alleviation, Employment and SME which plays a strategic role in shaping policies according to priorities set by the office of President. This project will forge strategic partnerships between two economic systems, continue a framework of policy dialogue and identify key issues on the Indonesian reform agenda, ecpecially with regard to poverty alleviation and employment creation, which will benefit from highlevel policy advice from Germany. 7. Priority Poverty Alleciation and Disparity 8. Objectives The project has two objectives : (1) to facilitate advisory inputs to the Indonesian reform process by key economic policy-making institutions of the German Social Market Economy; (2) to strengthen the institutional capacity of economic policy advice in Indonesia. 9. Activities a. Short and long-term technical assistance (experts); b. 2 Study visits; c. Staff exchanges.

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Code No: T-06-05500-0101-068483 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,300,000 0 1,300,000 0 0 0 0 0 1,300,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 1,300,000 0 1,300,000

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Ministry of Research and Technology

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Code No: T-05-04200-0104-064588 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Improvement of Research Capacity : 36 months : National Wide : Ministry of Research and Technology : Ministry of Research and Technology

6. Background and Justification The development of science and technology (S&T) capability is determined by increasing the capability and capacity in utilization, improvement and absorption of a science and technology for improving competitiveness, independency and increasing the nation welfare. To develop and improve science and technology, it is needed to increase research capacity and enhance institution capacity of research centers. To increase research capacity, we need to increase quality and quantity of human resources in science and technology, to increase the utilization of the research and we also need to create conducive environment for research resource development. Improvement of Science and Technology Institution will support capacity improvement and role of Science and Technology Institution in national development. 7. Priority Education and Health 8. Objectives a. To increase capability, capacity and productivity of research in science technology research centers b. To increase stock of capable human resources in research and technology c. To increase utilization of domestic science and technology research by communities, business and government d. To support optimization and utilization facility and resource of national science and technology 9. Activities a. Development study/comparative study b. Trainings, seminars, and workshops on women participation in development program c. Long-term and short-term experts d. Formal education for government officers e. Capacity building for government institution

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Code No: T-05-04200-0104-064588 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 50,000,000 0 50,000,000 0 0 0 0 0 50,000,000 Expenditure: Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 50,000,000 50,000,000

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Local Government of Jepara Regency

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Code No: T-04-03202-0403-067488 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : Jepara Fish Landing - Base Expansion Project : 24 months : Jepara Regency, Central Java : Local Government of Jepara Regency : Local Government of Jepara Regency

6. Background and Justification Indonesia is surrounded by a vast sea area that includes third largest Exclusive Economic Zone in the world. Fisheries output totals 4,500,000 tons including that of inland water and aqua culture. Fisheries is the most promising economic field in Indonesia as a primary industry which supplies animal protein to Indonesias 200 million population, offering employment opportunity for 5 million people and earning US$ 2 billion of foreign currency. But recently, there are signs of excessive fishing of valuable fishes in the Economic Zone and in certain sea areas and stock of marine resources tends to decline. At the same time, the fisheries actual situation has many problems such as: a. Lack of the proper understanding of fishermen on the value of the marine resource. b. Chronic shortage of the basic infrastructure such as fishing ports, landing facilities and processing plants. c. Insufficiency of fishing and processing skills. d. Insufficiency of the distribution system causing about 25% of the catch to rot and becoming spoiled. With this background, the Ministry has established a sustainable fisheries including development of responsible fisheries for 2,258 thousand tons of Maximum Sustainable Yielding, improvement of fisheries facilities, quality improvement and increase of the marine products, improvement of the fisheries related organizations, environment preservation and so on. In spite of these efforts, effective result is not yet seen due to the difficulty the traditional fisheries have under the national character which consist more than 17,000 of islands and multi-ethnic cultural diversification. To establish sustainable fisheries as the effective way for development by considering the regional character. Overcoming poverty is the very important task for Indonesias development. In order to realize it, promotion of fisheries, in particular of artisan fishery is thought to be important. And to fully utilize the potential it has, installing the basic infrastructure and construction of better fishing village by the settlement of the moving fishermen is needed. 7. Priorities a. Revitalization of Agriculture, Rural, Marines, and Fisheries b. Poverty and Disparity Alleviation 8. Objectives a. To developmnt fish landing base, fishing facilities including fish handling shed and ice making/storage plant and slt fish processing plant on the main fishing areas T- 533

Code No: T-04-03202-0403-067488 b. c. d. e. f. g. h. i. j. k. l. To diversificate the fisheries type To establish marine resource management under the lead of fisheries Bureau To alleviate overcrowding fisheries To increase the marine production To develop the fish processing technology To educate and bring up of the persons engage in fisheries To improve the living standard of the fishermen To induce the different price according to the level of freshness To enhance the fishermens cooperation To produce the hygienic marine product (especially salted product) To establish marine products distribution system

9. Activities a. Increase the production and control of the marine resource b. Development of responsible fisheries toward the sustainable production of 6,258 million tons c. Improvement of the fishing infrastructure d. Diversification of the exporting items e. Development of small islands and coastal areas f. Vocational training of the fisheries relating people g. Education to the fishermen to realize the independent facilities management h. Improvement of the maritime rules and regulations i. Improvement of the function of the organizations including technology development and local organizations 10. Project Cost Funding Source: Foreign Funding - Soft Loan - Grant - Export Credit/ Commercial Loan Sub Total Counterpart Funding - Central Government - Regional Government - State-Owned Enterprise - Others Sub Total TOTAL Expenditure: : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ : US$ 0 1,000,000 0 1,000,000 0 0 0 0 0 1,000,000 Foreign Expenditure : US$ Local Expenditure : US$ TOTAL : US$ 0 1,000,000 1,000,000

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Local Government of Musi Banyuasin Regency

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Code No: T-05-08702-1007-067489 1. 2. 3. 4. 5. Project Title Duration Location Executing Agency Implementing Agency : : : : : Musi Banyuasin Librarian and Archivist Education Project 3 months Musi Banyuasin Regency, South Sumatera Local Government of Musi Banyuasin Regency Local Government of Musi Banyuasin Regency

6. Background and Justification After Musi Banyuasin Authority Archives Acquisition Project held in year 2003, Public Library and Region Archive Office in the improving condition of archives amount, library collection and users which need to be handled by expertise and skilled officials. In 2003, archives from all institution of Musi Banyuasin Regency Government have been collected. Those archives were consists several important files, from decision letters, cases, project file and many the kind which process needs to be handled carefully and accurate, since concern the archives continuous and function. However, those are still ir