Strategy

(Extracted from BAPPENAS and TNP2K_Activity Note-IRS- (14/12/14))

The design of this Activity based on test – learn – adopt model through a proof of concept, integrating practice change support during the first year of Roll Out in each district; and then aiming for the take up by the local authorities and players is aimed at providing effective results for the Activity.

This Activity is based on a systematic approach to implementation and roll out. Hence annual projections for selection of the next list of districts will be made at an early stage with enough time for these entities to make logistical arrangements to roll out IRS in the following years.

Early engagement with the districts governments and critical stakeholders, inclusion of sensitization in the implementation approach and incorporating a mechanism for stakeholder buy in through a process of MoUs is aimed at lending effectiveness to the Activity. As the Activity rolls itself out, emphasis is more on the uptake by the districts for which not only will MoUs be signed at an early stage but provisions will also be made by the next list of target districts in their budget to align with the budget cycle.

Identifying any potential risks at the early stage and tracking those will help effective implementation of the Activity. The M&E Framework will be designed to allow for an environment of continued improvement, by feeding the lessons learned into the next cycle of the activities.

The strategy is based on establishing the proof of concept, validation of tested assumptions and then a roll out of the tested tools and implementation arrangements into more districts.

This Activity will be implemented in the following phases:

1. Preparation Phase (March 2014 to December 2014) will entail the technical preparation for the Activity.
2. Proof of Concept Phase – (January to June 2015) will see the start-up activities enabling the creation of the TAU, training materials, technological solutions as well as the proof of concept.
3. Evaluation Phase – (July to Dec 2015) will enable the assessment of the system to learn lessons from the first cycle to feed into the Roll out Phase.
4. Roll Out Phase – (Jan 2016 to Dec 2019).  Upon completion of the evaluation by the end of 2015, decision will be taken for roll out.

The total indicative budget of 10,430,000 for 5 year period (with some 2 million required for the first and evaluation phases until December 2015), allows the implementation strategy to intervene for one year in each district, with the expectation that national and local budgets from participating districts will cover the following years’ expenditures sustainably.

During the Proof of Concept Phase, a very smart TAU is being suggested to not only reduce the costs but also enable efficient management.

In this regard, consultations with local governments that will use the IRS tools will be organized from the outset of the Activity to seek their buy-in and confirm with their commitment to implementing and funding the IRS.   

The process will also be marked with signing of an MoU between BAPENNAS and the selected districts to confirm their commitment for continuing with the reform beyond the first year of implementation. In order to make this sustainable, discussion with BAPENNAS will also be held around linking budget with performance on sustainably supporting / funding this reform.

Selection of Districts

The districts where the IRS tools will be tested and adjusted are those where the Supply Side Assessment of the SP programs was conducted. These districts include: Sleman, Sragen, Lombok Tengah, TTS, Kubu Raya, Sukabumi, Pesisir Selatan, Belitung Timur, Malang, Kota Ambon, and Bantaeng. Generally, these districts:

• geographically represent main regional territories of Indonesia (Java, Sumatera, Kalimantan, Sulawesi, Nusa Tenggara, and Maluku) .
• belong to different levels of economic and human development 
• have various local initiatives to complement the national social protection programs but lack of vertical (central-local) and horizontal coordination among local agencies.
• have initiated complaint handling mechanism for poverty reduction and social protection programs but scattered over different agencies and mixed with complaint handling mechanism for other development services provided by the local government, hence creating confusion for program beneficiaries.
• have tried to experiment some level of integration of SPPs, e.g. Kab. Sleman, Kab. Sragen, and Kab. Sukabumi have tried to build the referral system. In these districts, the Management Information System has been established in order to provide the updating data for their social protection programs. Many districts have dedicated MIS staff, computer equipment and registries of some of the local social programs available in their territories. 
• see the importance of having a single database (UDB) verified and validated at the local level.
• are willing to cooperate with the Central Government in updating the UDB in their territories (like Sleman and Belitung Timur cooperating with TNP2K).
• have a large number of facilitators from both the national and local programs.

Exit Strategy and Sustainability. Sustainability will be managed at all levels including the central government (coordinated by Bappenas), the local government managing the IRS, and the beneficiary demanding for reform and continuation of the IRS led social protection system.

Some of the components of the Exit Strategy and Sustainability are summarized below:

• Upfront government commitment is critical for managing this Activity successfully. The process will be marked with a commitment from BAPENNAS to manage and fund this activity sustainably, especially upon discontinuation of donor support (after Year 5).
• IRS integration into RPJMN 2015-2019 as well as annual plans and budgets at the national and sub-national levels.    
• Selection of districts and municipalities for participating in the IRS Activity will be decided on the basis of a multi-variable criteria including the willingness and ownership of the districts and municipalities.  As local governments may have fiscal constraints while also there can be quite a few competing “priorities” for them, not taking the political interests into account, actual budget allocations will be made as part of the criteria for continuation with local governments or drop outs. This will be determined by the TAU and applied for informing decision making annually in a systematic manner
• BAPENNAS and the participating districts/municipalities will enter into MoUs providing tasks and responsibilities of each party including the obligation of the participating district/municipality to set aside funds (allocated in the local budget document/APBD) for the continuation of IRS activities beyond the first year of implementation. MOUs will be signed between Bapennas and each participating district and municipality during the Preparation Phase and the Proof of Concept Phase and before the Roll Out Phase to confirm their commitment for continuing with the reform beyond the first year of implementation in each district/municipality.
• Bapennas will continue holding the Coordination Meetings with the line ministries, districts and municipalities to confirm their ongoing commitment and support for the initiative. Supply and Demand-Side Assessments to be used as evidence for feeding into these discussions.
• Upon proof of concept, completion of the evaluation phase and learning lessons from the first cycle of implementation, the Activity will also entail massive advocacy and awareness building initiatives, which will enable the other districts to crowd in and adopt this tool for improved poverty reduction results.

In order to sustain interest of the districts/municipalities, discussions with BAPENNAS will also be held around linking district/municipality budgets with their performance on sustainably supporting / funding this reform.