Norway first donor to support Indonesian aid management initiative

H.E. Mr. Eivind S. Homme, the Ambassador of Norway to Indonesia, Mr. Kennedy Simandjuntak, and UNDP Country Director, Mr. Håkan Björkman during the signing ceremony

Jakarta, 13 November 2009 – As the first contributor to the Transitional Multi Donor Fund today, the Government of Norway marked its strong support Indonesia’s effort to improve the management of international development assistance. Through a Multi Donor Programme, facilitated by the United Nations Development Programme (UNDP), the Government of Indonesia is establishing the structures, systems and national capacity to enhance the national ownership and effectiveness of all international aid.

While development aid makes up less than 1% of the national budget, managed effectively, these funds can make a significant difference in the fight against growing inequalities, climate change and other development challenges faced by Indonesia.

“Norway is fully committed to support Indonesian reform of its aid management systems,” said H.E. Mr. Eivind S. Homme, the Ambassador of Norway to Indonesia. “We believe that with effective management, foreign grants will significantly contribute to Indonesian development.”

UNDP Country Director, Mr. Håkan Björkman said that “Indonesia is transforming the way it does business with donors, becoming more confident as a middle-income country, and the Norwegian support is instrumental in this pioneering effort”.

Activities under the Trust Fund are implemented by the Aid Development Effectiveness Secretariat, which focuses on strengthening systems and capacities in six areas: procurement, dialogue and institutional development, monitoring and evaluation, capacity building and knowledge management, public financial management and development of financing mechanism.

The Secretariat works closely with a mix of government officials and development partner representatives to share information, discuss achievements and challenges, and to attain agreement among participating stakeholders on common steps forward.

A number of donor agencies and partners have assisted the Secretariat during its early set up. AusAID and USAID provided support for establishment of the Secretariat. Meanwhile, CIDA and UNDP supported the 2008 Survey on Aid Effectiveness, preparation for the Jakarta Commitment, and training on Aid Effectiveness. While for the more recent implementation of the Transitional Multi Donor Fund AusAID, The Netherlands, DFID and some other donors have also demonstrated strong commitments.  

For further information, please contact:

·         Lukas Adhyakso, Head of Planning, Monitoring and Evaluation Unit; lukas.adhyakso@undp.org

·         Olenka Priyadarsani, Communications Officer; olenka.priyadarsani@undp.org