Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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