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Lesson
The need to be aware, during program design, of present or future laws that could impede reform. In this case, the passage of the Decentralization Law (2001) appears to have delayed the enactment of the investment law and to have led to the cancellation of the final loan tranche.

Project Number: 31644-013
Project Name: Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]
Report Date:
Lesson
One of these pertains to the linking of loan tranche releases with conditions for the passage of new laws. The passage of laws by the Parliament is normally not within the control of ADB or the government. Therefore, the question arises whether such conditions should continue to be imposed by ADB or, if such links are made, whether more time should be allowed for the laws to be passed. In this case, the delay in the passage of the investment law led to the cancellation of the final loan tranche, and thus to diminished efficiency in resource use.

Project Number: 31644-013
Project Name: Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]
Report Date:
Lesson
No new lessons

Project Number: 33062-013
Project Name: Road Rehabilitation (Sector) Project (Loan 1798-INO)
Report Date:
Lesson
The other lesson learned was that this sort of vital reform measure, i.e., reorganizing the BPKP, should not have been pushed back as a condition for release of the second tranche. This appears to be a flaw in the program design. ADB should have insisted on reforming the BPKP step by step, making the government's agreement to reorganize the BPKP a condition for submitting the program for Board approval. Then government agreement to come up with a firm plan to reorganize the BPKP should have been made a condition for the release of the first tranche.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
Implementing a reform program that involved cross-agency coordination and cooperation needed the country's highest political support, while this program was supported mainly by the Ministry of Finance (MOF) as part of its public financial management reform program. The MOF by itself appeared to lack support to push for downsizing the BPKP as contemplated under the program. In the end, the government appeared willing to sacrifice the second tranche in the interests of political expediency.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
The major lesson learned from implementing the program is that it is generally difficult to implement reform measures that involve institutional shrinking and downsizing staff as in the case of the Badan Pengawasan Keuangan dan Pembangunan or Financial Supervisory and Development Board, now the government internal auditors (BPKP). The BPKP was a well-entrenched auditing institution with about 6,500 staff, about 5,000 of whom were spread in about 30 regional offices.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
A midterm review of a project should not be linked to the timing of another project activity. Such a linkage was found to be counterproductive to the timely and successful implementation of the Project.

Project Number: 22045-013
Project Name: Six Universities Development and Rehabilitation in Indonesia
Report Date:
Lesson
Poor design of and quality of completed civil works are linked with inadequate and unqualified supervision at the local project level. To eliminate these potential problems, the main implementing agency for a project should have overall responsibility for the engagement and monitoring of implementation of the services.

Project Number: 22045-013
Project Name: Six Universities Development and Rehabilitation in Indonesia
Report Date:
Lesson
Bank supervision of project implementation is more critical at the start when implementation arrangements are made operational than when implementation is progressing on schedule. More staff time should be allocated to review missions for projects at widely scattered locations.

Project Number: 22045-013
Project Name: Six Universities Development and Rehabilitation in Indonesia
Report Date:
Lesson
The physical appearance of existing buildings, landscape, and teaching equipment at an educational institution is a good indicator of budget allocation for maintenance and commitment by teaching and administrative staff to a good work environment. It should not be assumed that where maintenance of existing facilities is poor, new buildings and teaching equipment provided under a project will fare any better.

Project Number: 22045-013
Project Name: Six Universities Development and Rehabilitation in Indonesia
Report Date:
Lesson
The sustainability issue should be given careful attention in designing a project that requires (i) innovative services to be established and continued after loan closing; and (ii) budget allocation, human services, and commitment by decision makers.

Project Number: 22045-013
Project Name: Six Universities Development and Rehabilitation in Indonesia
Report Date:
Lesson
Assess and evaluate human resource development needs. Training needs assessment and post-evaluation of training courses need to be included to assess adequacy, quality and training impact.

Project Number: 34007-012
Project Name: Decentralized Health Services I
Report Date:
Lesson
Demand-driven approach to improve the local health situation. The project highlighted the importance of evidence-based and demand-driven project planning and implementation to address local health needs better. The establishment of district team problem-solving empowered staff and encouraged intersectoral coordination.

Project Number: 34007-012
Project Name: Decentralized Health Services I
Report Date:
Lesson
Strengthen management capacity for decentralized health services. While central and local staff were empowered and received diverse technical training, overall more attention needs to be given to the management of health services in the decentralized environment.

Project Number: 34007-012
Project Name: Decentralized Health Services I
Report Date:
Lesson
Mobilize local leaders. Local leaders and or champions need to be identified to initiate local health care reform initiatives and the financial sustainability of activities. The project demonstrated that local regulations to support health sector reform and ensure sustainability are possible through large-scale socialization and advocacy.

Project Number: 34007-012
Project Name: Decentralized Health Services I
Report Date:
CSV