4
approximately 1,075 active main development trust funds.
14
In 2013, the number of active trust fund accounts in the WBG decreased to 1,030, while the volume remained largely unchanged.
15
The International Bank for Reconstruction and Development IBRD, a member of WBG, itself manages over 700 development trust funds, receiving annual donor contributions of roughly
USD 4 billion
16
in many different areas. Meanwhile, today 29 trust funds are managed by United Nations for Development
Program UNDP Multi Donor Trust Funds MDTF Office. The MDTF Office’s deposits
totalled over USD 4 billion at the end of 2009 and it has, to date, transferred just over US 3 billion to participating organisations for implementation.
17
Following on the successful operation of the development trust fund created by the international donor, Indonesia also has been creating a development trust fund under their
national system. This fund is designed as a nationally owned and administered for pooling
external funding resources from various development partners in a manner that could improve alignment between external assistance and national system.
18
A. An Earlier Generation of Indonesian Development Trust F unds
1. Post Disaster Recovery Trust F unds
a. Multi Donor Trust Fund for Aceh and Nias
The earthquake and tsunami that struck Indonesia on December 26, 2004 was one of the worst natural disasters in recorded human history. The massive earthquake measuring 9.1 on the
Richter scale was cantered in the Indian Ocean about 150 kilometres off the coast of the
14
Id. at 11.
15
World Bank, Trust Fund Annual Report 2013, at 25 2014 Concessional Finance and Global Partnerships Report On File with Author.
16
World Bank, Trust Fund Annual Report 2012, at 25-8 2013 Concessional Finance and Global Partnerships Report On File with Author.
17
OECD, Multilateral Aid 2010, at 58 2011 Unpublished Report On File with Author.
18
The Aid of Development Effectiveness Secretariat, supra note 5, at 3-4.
5
province of Aceh.
19
Nearly 221,000 people were killed or missing, and over a half million were left homeless. As many as 750,000 people lost their livelihoods.
20
Just three months later on March 28, 2005, another massive earthquake measuring 8.7 on the Richter scale struck the neighbouring province of North Sumatra. This quake devastated the
Nias islands, located in the Indian Ocean 130 kilometres off the western coast of Sumatra. This second disaster resulted in the death of nearly 1,000 people and the displacement of nearly
50,000 survivors.
21
Aceh and Nias tragedy then led to the creation of the first multi donor trust fund in Indonesia. The Multi Donor Fund MDF for Aceh and Nias was established in April 2005, in
response to the Government of Indonesia’s GoI request to the World Bank to coordinate donor support for the reconstruction and rehabilitation of affected areas following earthquake and
tsunami in Aceh and Nias.
22
MDF was established under a joint resolution of the International Bank for Reconstruction and Development IBRD and International Development Association
IDA, and IDA appointed as trustee thereof.
23
The MDF pools 655 million in grant resources under the administration agreements between 15 donors: the European Commission, the Netherlands, the United Kingdom, the
World Bank, Sweden, Canada, Norway, Denmark, Germany, Belgium, Finland, the Asian Development Bank, the United States of America, New Zealand and Ireland.
24
Grant funds
19
MDF-JRF Secretariat, Building Capacity: Experiences from Post-Disaster Aceh and Nias 10 World Bank Jakarta, 2012 Working Paper No. 83900 on File with Author available at
https:openknowledge.worldbank.orghandle1098617635 .
20
Id.
21
Id. at 11
22
Id. at 15.
23
Joint resolution of the International Bank for Reconstruction and Development IBRD and International Development Association IDA No. IBRD-2005-0004 and IDA-2005-0002.
24
Secretariat of the MDF Aceh and Nias, Sustainable Future: the Legacy of Reconstruction 25 2012 Final Report On File with Author.
6
were provided to projects which are implemented by government and non-government agencies and communities, with partner agencies providing oversight. Partner agencies include the
United Nations Development Program UNDP, the World Food Program WFP, the International Labour Organization ILO and the World Bank.
25
The MDF was coordinated by the GoI, initially through the Agency for the Rehabilitation and Reconstruction of Aceh and Nias BRR, which was set up to manage the reconstruction
and recovery effort. The MDF was governed by a Steering Committee SC with representatives from the national and local government, donors, the trustee, and civil society.
26
The SC was co- chaired by the BRR, the Government of Aceh, the European Union representing the donors, and
the World Bank as trustee of the fund.
27
Ministry of National Development Planning
28
Bappenas took the critical role of the BRR in 2009 after BRR was officially closed by the President of Indonesia.
29
The SC met on a regular basis in Jakarta or Aceh to review and endorse project concepts and proposals for funding, and to discuss the progress of the recovery process in Aceh and
Nias.
30
The Committee has the authorization to make decisions and approvals in relation to the utilization of the trust fund.
31
The SC allocated funds to projects after reviewing proposals
25
MDF-JRF Secretariat, Building Capacity: Experiences from Post-Disaster Aceh and Nias 10 World Bank Jakarta, 2012 Working Paper No. 83900 on File with Author available at
https:openknowledge.worldbank.orghandle1098617635.
26
Id.
27
Secretariat of the MDF Aceh and Nias, supra note 24, at 27.
28
Ministry of National Development PlanningDevelopment Planning Agency hereinafter as Bappenas is Indonesian key agency which assigned by President of Indonesia to coordinate and evaluate national development
planning agenda. The critical roles of Bappenas are to provide annual, mid-term 5 years and long-term 20 years national planning documents. National planning documents are being used by Ministry of Finance to estimate the
total budget that is needed in a certain period of time.
29
Secretariat of the MDF Aceh and Nias, supra note 24.
30
Id.
31
The Aid of Development Effectiveness Secretariat, supra note 5, at 2-12.
7
endorsed by the government.
32
The MDF for Aceh and Nias has a secretariat to support the duties of the SC.
33
The MDF’s Recovery Assistance Policy RAP set out guiding principles for the MDF.
Approved by the SC in 2005, the RAP served as a framework for MDF operations and established the priority sectors and approach for funding. It also outlined a range of quality
issues and cross-cutting themes to be considered in MDF projects.
34
b. Java Reconstruction F und
