Download CSPs in Indonesia

CSPs in Indonesia
By Dikky Indrawan
Why are CSPs necessary?
Post-1998 monetary crisis, Indonesia's
economy was characterised as one with: a
large amount of foreign debt that was the
result of 30 years borrowing by the
government of the new order. Indonesia had
accumulated debts of USD 120 billion (19671997) which led to a high level interest
expenses. In addition the economy was
plagued with high inflation and widespread
bankruptcies of industries.
Nowadays, the national agenda on partnership
after the reformation was focused on the
governance of national infrastructures and
resources. These activities were based on the
purpose of better society through democratic
process and cross sector partnership. In
addition, as the current chair and the biggest
economy of ASEAN countries, Indonesia aims
to be the role model for the region in the area
of good governance and accountability. The
government sees partnerships as a means to
achieve this, next to being a tool to advance its
development agenda.
INDONESIA
GDP in mill USD
2009-2013:
868, 346
Population
2009-2013:
249,865,631
Doing Business
Index 2013:
114
Corruption
Perception Index
2013:
114
How have CSPs emerged?
In the post-1997 reform era the government
system was expected to remove pro-monopoly
polices; upholding the principles of
professionalism and community
empowerment and making civil service
institutions neutral. In the public
administration system, there was a drastic
change from centralization to decentralization.
During this period the role of the market
increased. In many sectors, the market started
to develop its own rule and regulation.
To cultivate and develop the democratic life
and human rights, the empowerment of CSOs
and NGOs was seen as one of the two pillars of
democracy in the political structure. CSO’s and
NGO’s gained empowerment and liberty and
are in a situation where they have the ability
to impact a variety of activities. Their numbers
have grown and have the opportunity to be
involved in a number of sectors.
Empowerment of CSOs and NGOs was
achieved through a combination of:
government protection, stewardship, and
regulatory change. In a relatively short period
of time, Indonesia has sailed through waves of
changes that had taken the country to its
current state of a confident middle-income
and democratic state a member of the G-20
economies.
In this period of time, the state began to
develop cooperation with private companies
and civic society. The economics decision
tended to be neo-liberalism, which led to the
privatization of public services and state own
companies. Moreover, involvement of civic
society in development began to arise in many
sectors.
What do CSPs look like?
Modern day Indonesia has gone through three
distinct political phases, which have played a
large role in shaping the institutional
characteristics of partnerships.
The state aims to reduce debt, and begin to
finance development by involving the market
and civic society. However, the role of the
market has grown much faster than the ability
of civic society to catch up. Nevertheless, civil
society began to develop partnerships through
PPP in infrastructure policy, and also the
country began to involve civic society in
development consultancy on any building
project.
Partnerships arise in various development
sectors, such as agricultural development
sector, and health issue problem. The role of
market sector determines the relationship
between the government and civic society,
since it mainly drives the economy. The
private sector is empowered towards selfmanagement and in the meantime the
government sets the policy for economic
development through consultation with civic
society to overcome the economic and market
challenges.
In terms of partnership, the government
assumes the role facilitator of civil society’s
participation in economic development.
The Indonesian government developed a
partnership framework to support the
involvement of private sectors in national
development growth, especially in
infrastructure sector. Its first priority is to
create a better environment to attract private
sector into partnerships.
The government has to consider many factors
when making fiscal policy decisions, especially
those related to public infrastructure
investment. First, with a limited budget,
money should be used efficiently, keeping in
mind macro-economic objectives of economic
growth. Secondly, budget allocation policy is
jointly determined with the House of
Representatives or Parliament during budget
formulation, and is, therefore, influenced by
political agenda
In PPP partnerships, the basic contract types
are service contracts, management contracts
or lease contracts, build–operate–transfer
(BOT) and similar arrangements, concessions;
and joint ventures.
Cross Sector Partnership Case
FRESH (Future Resilience and Stronger Households)
Kraft Foods and Save the Children created a partnership program called FRESH (Future Resilience
and Stronger Households) - also known as the "Posyandu Strengthening Program" to improve
feeding practices, healthy behaviors, community-based health services, and early childhood
development (ECD) services in Indonesia. The two partners are continuing to find ways to address
challenges and leverage key success factors that emerged during the partnership.
http://ccphw.org/userFiles/file/Kraft%20Foods_STC%282%29.pdf