Continue working within the existing regions in order to capture their full value as national

13 • Activities should be strategic and maintain innovation. There is no “cookie-cutter” approach that can be applied well in all locations. This point needs to be made in promoting models developed by CRMP. An important part of the project’s success has been its adaptive approach. • It is unlikely that the intensity of effort required in the early stages in North Sulawesi Anchor communities could be sustained in government or donor-sponsored programs. This point needs to be addressed when these models are promoted. • A key area where scaling up has started is in Likupang, North Sulawesi. The activities there require a realistic assessment about what can be accomplished with less CRMP involvement in the future. It would be most difficult to suddenly withdraw support for work started in this past year. • Scaling-up involves a whole range of locations and activities started under CRMP. Those models identified as being of particular importance include: village level initiatives such as marine sanctuaries coupled to best practices for sustainable fisheries and ecosystem conservation; local integrated planning and institutional mechanisms exemplified by the Balikpapan Bay Council and Management Plan; coastal resource atlases and their utilization for management and budgeting as exemplified by the Lampung Coastal Resource Management Plan; local, district, and provincial legislation, regulations, directives and ordinances; coastal resource centers and technical activities as exemplified by work started through IPB and INCUNE.

4. Add economic dimensions. As stressed throughout this assessment, coastal conservation will

happen only when there is attention to sustainable livelihoods and economic wellbeing of communities, and with better consideration of economic value provided by coastal ecological services. CRMP therefore should incorporate an economic dimension to key activities as follows: • Integrate a household economics approach within CRM, emphasizing local opportunities, value-added approaches, and forward-backward linkages that identify where intermediary relationships might be altered to produce greater benefits locally. • Introduce an ecological-economic perspective into regional activities such as the Balikpapan Bay technical studies and Bintuni Bay atlas. • In future work with lawmakers, and with government units, focus effort on market-based incentives in regulations, and on sustainable investment policies.

5. Produce short-term, practical outcomes. While some activities can only be expected to

demonstrate their full benefits over a longer time span, even well past the end of the project, it is important to demonstrate real economic and environmental value over much shorter time periods. Such outcomes may include: improved working relationships among sectors leading to new forms of economic cooperation; positive impacts at the community level arising from a reduction in fishing pressure or cessation of illegal resource harvesting; and more effective investment by government as a consequence of improved coastal planning. These points are not well covered by existing project indicators, but they are the type of indicator that will be needed by a government concerned about investing in sustainable economic growth. Of the various measures, perhaps the most important are those which highlight activities that directly benefit local communities and that improve decentralization results.

6. Continue working within the existing regions in order to capture their full value as national

models. The work within the existing regions should aim to build breadth and depth, including use of existing anchor sites for training and demonstration purposes, and to determine implementation issues that may be important for use elsewhere and in further policy development. The following recommendations are made for each region. North Sulawesi – Continue the effort for this Province to become the leading national model for a village-to-province system of small island and coastal reef sustainable development. From the work at the community Anchor Sites, existing scaling-up efforts in Likupang, and existing initiatives with kabupaten and provincial level governments, legislators, academics and NGOs, help to strengthen decision support processes, especially for additional scaling-up sponsored by government and communities, and provide additional advice on policies, especially related to public finance and other sources of support for successful coastal management. 14 Specific points to consider include: • Helping to develop mechanisms for vertical and horizontal linkages, creating a functional management system that encompasses the entire province, with better links to sources of national support. • Work with other USAID activities in the region, MCRMP, JICA, etc., to influence directions for sustainable coastal management. • Explore the use of existing Anchor Sites for training involving other districts and communities. • Working with both provincial and district governments to ensure functioning law, regulations and budget for coastal management are in place. An Indonesian or international expert in public finance is needed to assist in this effort. • Foster activities to move from Atlas awareness and overview to functional spatial planning for land and sea use. Such activities need to be considered in light of investment by others, especially new JICA activities that may follow-up the existing work with the North Sulawesi government BAPPEDA for improved coastal planning. Although various individuals have pointed out the potential value of starting new initiatives, for example in offshore small island groups such as the Talaud Islands, any such an initiative in the near future would divert attention from the consolidation effort required to ensure that existing promising directions are turned into a functional management system. East Kalimantan – The Balikpapan Bay Council becomes the first fully functional model in Indonesia for integrated watershed-bay management. The high ecological and economic value of this bay makes it a showcase opportunity that over time could influence many other estuarine and bay settings in Indonesia. There is every reason to believe that the right levels of interest, cooperation and finance can be maintained in Balikpapan Bay, but it will take a very dedicated effort to derive demonstrable short-term benefits arising from the new Council. For this reason, it makes sense to concentrate effort on work already started and let the learning diffuse to other settings in East Kalimantan rather than directly take on additional sites under CRMP, although demand is high. Several points need to be kept in mind in the extension of work in Balikpapan Bay: • Major emphasis should be placed on strengthening institutional relationships among the many bodies with a stake in the Bay and watershed, on building an effective and accountable set of public-private partnerships, and on ensuring there is real community participation, with defined mechanisms for input and feedback on the Council’s work. Communities and local resource users are concerned that the Council may well operate at a level that does not adequately consider their input. • Relentless effort is needed to leverage funding from local sources for coastal resource management activities. Every major industry on the Bay and in the watershed should be a potential funding partner. • Derive full benefit of land and water spatial planning, including zoning approaches—not as an atlas but using more functional tools such as GIS for application in decision-making. • If there is interest, help to build a more formal and enduring twinning relationship with a U.S. bay management initiative. A mechanism is needed for addressing substantial, pressing demands for action in other East Kalimantan areas, especially the Mahakam Delta, while not diverting attention from the key tasks involving the Balikpapan Bay Council. There should be some advisory services provided to the Province and districtcity governments to assist with this, and attention is needed to setting up learning processes that can involve people from other sites so that the experience of the Balikpapan Bay Council can be disseminated rapidly. Some of the assistance may be directed to further legal development. Lampung – Pursue limited activities via IPB to monitor success in implementation of the Provincial Coastal Strategic Plan Renstra, including its on-going influence on expenditures. IPB, the local university and Lampung provincial officials are best placed to determine longer-term impact of past CRMP investment. This work should be conducted over the full five year period of the Strategic Plan unless it is 15 apparent that it is simply not working. In that case, analysis is needed on why the Plan has failed to be properly implemented. Papua – Consider future program activities once the Bintuni Bay Atlas is near completion and its value to local communities and stakeholders becomes clear. Additional efforts in Papua should be undertaken only after it is clear that value has been added to local district and community level through the coastal resource atlas initative, and that there is a genuine, local demand. Complete the atlas activities in a fashion that provides real value for immediate use in spatial and strategic planning.

7. Limit the number of new regions to be added over the next two years. Work has been