The development partner assistance was ambitious. Its timeliness and the volume of ADB's Comprehensive Response to the COVID-19 Pandemic (CPRO) financial assistance were well-received by the government. However, this led to a rushed design and inadequate attention to monitoring of implementation, particularly regarding existing capacities to collect gender-disaggregated data in the absence of any existing digital social security systems.
A comprehensive social welfare framework can greatly strengthen the impact of emergency response measures and programs that were intended to mitigate the impact of the COVID-19 pandemic on the most vulnerable households. As intended, the program helped to successfully mitigate the impacts of the COVID-19 pandemic on citizens and businesses. It was aligned with ADB's Strategy 2030 and the Pacific Approach.
Quick disbursing budget support is an effective instrument to respond to a crisis. Such an approach allows for strong alignment with government priorities and supports the government's ownership of the response measures. The eligibility criteria provide the necessary framework for due diligence. Timely upstream support can then be complemented with other forms of support–technical assistance, knowledge work, project investments–to reinforce the intended impact.
ADB staff and departments faced an unprecedented challenge in proceeding (urgently) with program development while learning how to apply the criteria and template for the new COVID-19 Pandemic Response Option (CPRO) modality and applying the 'One ADB' review process.
It is important to maintain some degree of flexibility to effectively respond to crisis situations. Perhaps the most important quality of Thailand’s CARES program was its ability to rapidly mobilize demand-driven support in a crisis; highlighting the importance in future crisis responses of maintaining some degree of flexibility in both program design and implementation. ADB was able to process and approve the program within 3 months of the government’s initial request for support. Events in Thailand necessitated loan signing to take place about 4 months after ADB approval.
The urgency of the lending produced outcomes that, while unavoidable, are nevertheless instructive. For example, target setting was difficult because the contours of the pandemic were fluid. Liaising with the government was also challenging. The timeline for initial response was tight, and ADB worked with a small number of government teams in the interest of speed. This concentrated approach to planning was complicated by the pandemic affecting government officials’ health and well-being personally.
It is important to digitalize government services in times of crisis. This effort is best pursued through collaboration with the private sector in Indonesia. The collaboration can strengthen the country's defense against future outbreaks and improve the targeting of social assistance. Digitalization including ithe financial sector should remain a focal point of ADB’s policy dialogue with Indonesia.
Timely planning of project extensions and a more realistic extension period will improve loan utilization. Undisbursed amounts under this project resulted largely from new government policies as well as contextual and operational factors. Various activities were canceled because of government restrictions on the use of loan proceeds for soft components (e.g., training, workshops, etc). Non-disbursements were also associated with other policy modifications, such as restrictions on the recruitment of international consultants. But contextual and operational factors also played a role.
Do not propose establishment of a new business continuity fund during crisis. The business continuity fund was established during the crisis. Actual usage was far less compared with existing instruments for concessional lending and refinancing, as operationalization took time. Unless such a fund can be established on time, proposing a new fund during a crisis should be avoided when good instruments are available.
Harness the role of community-based organizations for inclusiveness. Community-based organizations (CBOs) played an active role in implementing the PMEP, such as facilitating information dissemination in the community, collecting applications from interested unemployed individuals, and connecting them to ward offices. Similarly, CBOs helped the government in identifying poor and vulnerable people as recipients of its food distribution efforts and contributed to addressing food needs during the crisis.