Jakarta Commitment, 2009 Road to Indonesian Development Trust Funds

25 the Accra Agenda for Action AAA. AAA was designed to strengthen and deepen implementation of the Paris Declaration. The AAA takes stock of progress and sets the agenda for accelerated advancement towards the Paris targets. The AAA both reaffirms commitment to the Paris Declaration and calls for greater partnership between different parties working on aid and development. 130 The AAA stressed the following points: country ownership for developing countries of their own development policies; building more effective and inclusive partnerships; and achieving development result- and openly accounting for the aid flows. 131 The Paris Declaration and AAA have guided Indonesia to the changes of its contemporary aid architecture. In this sense, the nature of aid management in Indonesia is set to shift from “donorship” to “ownership”. After its participation in several High Level Forum on Aid Effectiveness, the government of Indonesia then continued their commitment to the principles of aid effectiveness by adopting exclusively a national action plan, through the signing of the Jakarta Commitment. 132

C. Road to Indonesian Development Trust Funds

1. Jakarta Commitment, 2009

With an understanding of the Paris Declaration and AAA, the GoI committed to move forward with full implementation of the principles aid effectiveness by developing and adopting exclusively a national action plan. Jakarta Commitment, which was signed by the GoI on January 12th, 2009 and adopted by the 26 development partners, is a Road Map to implement the agenda of aid for development effectiveness in Indonesia. 133 130 See generally OECD, supra note 124. 131 Gerard Van Bilzen, supra note 115. 132 Felicia Yuwono, supra note 102, at 3. 133 The Jakarta Commitment. 26 Jakarta Commitment is a strategic step initiated by the GoI to take advantage of a large agenda of the international aid effectiveness as expressed in the Paris Declaration to push reform process and develop a wider partnership to achieve development effectiveness. 134 The agenda of the Jakarta Commitment is based on the Paris Declaration principles and the Accra Agenda for Action through three underlying commitments including strengthening country ownership over development, building more effective and inclusive partnerships for development and delivering and accounting development results. 135 The commitment highlighted three area of reforms in the field of national development policy: 1 planning and budgeting reform based on the Law No. 172003 on State Budget and Law No. 252004 on National Development Planning System; 2 government Procurement Reform by enacting a new law regarding national procurement system and established a new agency called National Procurement Policy Agency; and 3 reform in the management of foreign loan and grant by ratified the Government Regulation No. 22006 on Procedure to Administer Foreign Loans and Grants. 136 More importantly, Indonesia has put harmonization as one of the top priorities in its aid effectiveness agenda. Having experienced with various multi-donor trust funds ranging from large multi-donor trust funds to quite small and ad hoc trust funds to support very specific activities, the Government and development partners commit to reducing the number of ad hoc freestanding trust funds. The Government will also issue clear-cut guidelines for the 134 Aid for Development Effectiveness Secretariat, Jakarta Commitment Annual Report 2009: Quest for Indonesia’s Role as a Middle Income Country 11-2 2010 unpublished report on file with author. 135 Felicia Yuwono, supra note 102, at 2. 136 Aid for Development Effectiveness Secretariat, supra note 134, at 77. 27 mobilization and management of multi-donor funds, and for the mainstreaming of multi-donor support program into government programming processes. 137

2. Aid for Effectiveness Development Secretariat, 2009