Country Operations Business Plan. Project Number: May Indonesia

Transcription

1 Country Operations Business Plan Project Number: May 2012 Indonesia

2 CURRENCY EQUIVALENTS (as of 3 May 2012) Currency unit rupiah (Rp) Rp1.00 = $ $1.00 = Rp9, ABBREVIATIONS ADB Asian Development Bank CPS country partnership strategy RPJMN Rencana Pembangunan Jangka Menengah Nasional (National Medium-Term Development Plan) NOTE In this report, $ refers to US dollars. Vice-President S. Groff, Operations 2 Director General K. Senga, Southeast Asia Department (SERD) Country Director J.D. Lindborg, Indonesia Resident Mission, SERD Team leader Team members S. Bhandari, Principal Country Specialist, SERD Indonesia Country Team In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 CONTENTS Page I. CONSISTENCY OF THE BUSINESS PLAN WITH THE COUNTRY PARTNERSHIP STRATEGY 1 II. INDICATIVE RESOURCE PARAMETERS 1 APPENDIXES 1. Indicative Assistance Pipeline 2 2. Assistance Program for Current Year 5

4 I. CONSISTENCY OF THE BUSINESS PLAN WITH THE COUNTRY PARTNERSHIP STRATEGY 1. The Indonesia country operations business plan (COBP), is aligned with the Indonesia country partnership strategy (CPS), The CPS focuses on supporting inclusive growth and environmentally sustainable development with climate change mitigation and adaptation. It is aligned with the government s National Medium-Term Development Plan (RPJMN), and maintains consistency with the priorities set out in Strategy 2020 of the Asian Development Bank (ADB). 1 II. INDICATIVE RESOURCE PARAMETERS 2. ADB has allocated $2.5 billion of ordinary capital resources (OCR) for public sector lending to Indonesia during A total of $8 million in ADB technical assistance (TA) resources is anticipated for The indicative lending assistance program for comprises $800 million in policy-based loans and $1.66 billion in project loans, excluding the $500 million in Precautionary Financing Facility in 2012 (Tables A1.1 and A1.2). As in 2012, and in line with the CPS focus on partnerships, every effort will be made during this period to mobilize cofinancing on concessional terms, and incremental financing through trust funds to augment the OCR and TA resource envelope (Tables A2.1 and A2.2). 3. ADB s private sector operations will selectively support the development and financing of important infrastructure projects with a focus on energy, transport, urban water supply, and sanitation. ADB will also explore private sector operations to support micro, small, and medium-sized enterprises; housing finance; and energy efficiency finance. ADB s Private Sector Operations Department is currently considering a $200 million loan (with a $50 million political risk guarantee) for a geothermal project, a Rp2 trillion loan for a toll road project, and a $75 million loan to a hydropower project in ADB s support to regional cooperation in infrastructure includes cross-border power transmission and roads, which aim to enhance connectivity between Indonesia and neighboring countries A resident mission-based sector lead in the energy and transport sectors may be considered for adequate delivery of the program in the next 3 years and beyond. Efforts will be made to strengthen the ADB staff mix, focus, and deployment to support CPS implementation greater capacity in policy dialogue, developing partnerships, knowledge products and services, supervision for sector interventions, monitoring and evaluation, and fostering closer cooperation with civil society and other stakeholders. 1 ADB Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, Manila. 2 A power interconnection project between Indonesia and Malaysia is being processed in 2012 and another one is in the pipeline for These are part of the Master Plan on ASEAN Connectivity (Association of Southeast Asian Nations [ASEAN] Master Plan on ASEAN Connectivity. Jakarta) as well as the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area. In addition, ADB is supporting the Coral Triangle Initiative and the Heart of Borneo programs to protect Indonesia s marine and biodiversity under these regional cooperation initiatives.

5 INDICATIVE ASSISTANCE PIPELINE Table A1.1: Lending Products, Appendix 1 Cost ($ million) ADB ADF Targeting Year Project/Program Name Classification Theme Division PPTA Total OCR Loans Grants Total Gov t Primary of Sector Co-finance a 2013 Loans Flood Management in Selected River Basins ANR GI SOD SEER Coremap 3-CTI Support Program ANR GI ENV SEER kv Java-Bali Power ENE GI GRO SEEN IDB Transmission Crossing Financial Market Development FIN GI GRO SEPF and Integration Program Rural Infrastructure Support for PNPM MS GI GRO IRM MS GI SOD IRM Neighborhood Upgrading and Shelter Sector Project Phase II Enhancing Inclusive Growth through Connectivity, Subprogram 2 Metropolitan Sanitation Management and Health II Project MS GI GRO SETC/IRM WSM GI ENV SEUW Total Loans Integrated Citarum Water Resource Management Project, PFR 2 Integrated Participatory Development and Management of Irrigation Project for Western Region of Indonesia Geothermal Development Project (MFF = $405 million), PFR2 (Sungai Penuh 1 and 2) ANR GI ENV SEER ANR GI GRO SEER ENE GI GRO SEEN CTF, IDB, EIB...

6 Targeting Year Cost ($ million) ADB Project/Program Name Classification Theme Division PPTA Total OCR Loans Grants Total Gov t Primary of ADF Sector Co-finance a Sumatra Peninsular Malaysia ENE GI GRO SEEN Interconnection Regional Roads Development T&ICT GI GRO SETC IDB Project II Total Standby 2014 IKK Water Supply Project WSM GI ENV SEUW = data not available; ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture and natural resources; CTI = Coral Triangle Initiative; CTF = Clean Technology Fund; EIB = European Investment Bank; ENE = energy; ENV = environment; FIN = finance; GI = general intervention; GOV = governance; Gov t = Government; GRO = economic growth; IDB = Islamic Development Bank; IKK = Ibu Kota Kecamatan (Capital of Sub District); IRM = Indonesia Resident Mission; kv = kilovolt; MFF = multitranche financing facility; MS = multisector; OCR = ordinary capital resources; PFR = periodic financing request; PNPM = Program Nasional Pemberdayaan Masyarakat (National Community Empowerment Program); PPTA = project preparatory technical assistance; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources and Agriculture Division, Southeast Asia Department; SEPF = Public Management, Financial Sector, and Trade Division, Southeast Asia Department; SETC = Transport and Communication Division, Southeast Asia Department; SEUW = Urban Development and Water Division, Southeast Asia Department; SOD = social development; T&ICT = transport and information and communication technology; WSM = water supply and other municipal infrastructure and services. a Sources and amounts to be confirmed during project processing. Source: Asian Development Bank staff estimates. Appendix 1 3

7 TA Name Sector Division Table A1.2: Nonlending Products and Services, Assistance Type Sources of Funding a ADB Others Amount Amount Source ($ million) Source ($ million) Total ($ million) 4 Appendix Integrated Participatory Development and ANR SEER PPTA TASF-O Management of Irrigation Project for Western Region of Indonesia Scaling Up Hydropower Development ENE SEEN PPTA TASF-O 1.20 TF Support for Social Security Reform FIN SEPF CDTA 0.00 TF Metropolitan Sanitation Management and WSM SEUW PPTA 0.00 TBD Health III Project Strengthening PDAMs Technical and Financial Performance WSM SEUW CDTA 0.00 TBD Total Capacity Development for Water Resource Management ANR SEER CDTA 0.00 TF Support for Public Private Partnership PSM IRM CDTA TASF-O Support for Connectivity T&ICT IRM/SETC CDTA TASF-O Total ADB = Asian Development Bank; ANR = agriculture and natural resources; CDTA = capacity development technical assistance; ENE = energy; FIN = finance; IRM = Indonesia Resident Mission; PDAM = Perusahaan Daerah Air Minum (Local Water Supply Utility); PNPM = Program Nasional Pemberdayaan Masyarakat (National Community Empowerment Program); PPTA = project preparatory technical assistance; PSM = public sector management; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources and Agriculture Division Southeast Asia Department; SEPF = Public Management, Financial Sector, and Trade Division, Southeast Asia Department; SETC = Transport and Communication Division, Southeast Asia Department; SEUW = Urban Development and Water Division, Southeast Asia Department; T&ICT = Transport and Information and Communication Technology; TA = technical assistance; TASF-O = Technical Assistance Special Fund Other; TBD = to be determined; TF = trust fund; WSM = water supply and other municipal infrastructure and services. a Sources and amounts to be confirmed. Source: Asian Development Bank staff estimates.

8 INDICATIVE ASSISTANCE PROGRAM FOR CURRENT YEAR Table A2.1: Lending Products, 2012 Sector Project/Program Name 2012 Firm Loans Sector Primary Theme Division Cost ($ million) ADB Year of ADF PPTA Total OCR Loans Grants Total Gov t Targeting Classification Cofinance a Polytechnics Development EDU GI SOD IRM/SEHS Geothermal Development ENE GI GRO SEEN CTF Project (MFF, $405 million), PFR 1 (Karaha) Strengthening the West ENE GI GRO SEEN AFD Kalimantan Power Grid Financial Market Development FIN GI GRO SEPF and Integration Program Enhancing Inclusive Growth MS GI GRO IRM/SETC through Connectivity, Subprogram 1 State Accountability PSM GI GOV IRM Revitalization Project Precautionary Financing Facility PSM GI GRO IRM Total Standby 500 kv Java Bali Power Transmission Crossing ENE GI GRO SEEN IDB 2012 Total ADB = Asian Development Bank; ADF = Asian Development Fund; AFD = Agence Française de Développement (French Development Agency); CTF = Clean Technology Fund; EDU = education; ENE = energy; FIN = finance; GI = general intervention; GOV = governance; Gov t = Government; GRO = economic growth; IDB = Islamic Development Bank; IRM = Indonesia Resident Mission; kv = kilovolt; MFF = multitranche financing facility; MS = multisector; OCR = ordinary capital resources; PFR = periodic financing request; PPTA = project preparatory technical assistance; PSM = public sector management; SEEN = Southeast Asia Energy Division; SEHS = Southeast Asia Human and Social Development Division; SEPF = Southeast Asia Public Management, Financial Sector, and Trade Division; SETC = Southeast Asia Transport and Communication Division; SOD = social development. a Sources and amounts to be confirmed during project processing. Source: Asian Development Bank staff estimates. Appendix 2 5

9 Table A2.2: Nonlending Products and Services, 2012 Source of Funding ADB Others Assistance Name Sector Division Assistance Type Source Amount ($ 000) Source a Amount ($ 000) Total ($ 000) 2012 Firm Strengthening Water Sector Performance in ANR IRM CDTA 0.00 NL Indonesia Sustainable Forest and Biodiversity ANR SEER CDTA 0.00 RCIF, Management in Borneo GEF, CCF Enhancing Financial Sector Governance, Risk FIN SEPF CDTA 0.00 TF Management and Depth Improving Access to Finance in FIN IRM CDTA 0.00 TF Aceh Capacity Building for PSM IRM CDTA 0.00 TF Decentralization Support for State Accountability PSM IRM CDTA 0.00 TF Revitalization Support for Second Local Government PSM SEPF CDTA 0.00 TF Finance and Governance Reform Program, subprogram 2 Fiscal Aspects of Social Security PSM SEPF CDTA 0.00 TF Reform Improving Competitiveness for PSM SEPF PATA TASF-O Inclusive Growth Enhancing Inclusive Growth T&ICT IRM/SETC CDTA TASF-O through Improved Domestic Connectivity Regional Roads Development Project II T&ICT SETC PPTA TASF-O IKK Water Supply Project WSM SEUW PPTA 0.00 TF Total Appendix Standby Scaling Up Energy Access in Rural ENE SEEN CDTA 0.00 CEFPF Indonesia Scaling Up Hydropower for Development in ENE SEEN PPTA 0.00 CEFPF Indonesia Water Utilities Sector Development Program WSM SEUW CDTA 0.00 AusAID Total

10 ADB = Asian Development Bank; ANR = agriculture and natural resources; AusAID = Australian Agency for International Development; CCF = Climate Change Funds; CDTA = capacity development technical assistance; CEFPF = Clean Energy Financing Partnership Facility; ENE = energy; FIN = finance; GEF = Global Environment Facility; IKK = Ibu Kota Kecamatan (Capital of Sub District); IRM = Indonesia Resident Mission; NL = Government of the Netherlands; PATA = policy and advisory technical assistance; PPTA = project preparatory technical assistance; PSM = public sector management; RCIF = Regional Cooperation and Integration Fund; SEER = Southeast Asia Agriculture, Environment, and Natural Resources Division; SEEN = Southeast Asia Energy Division; SEPF = Southeast Asia Public Management, Financial Sector and Trade Division; SETC = Southeast Asia Transport and Communication Division; SEUW = Southeast Asia Urban Development and Water Division; T&ICT = Transport and Information and Communication Technology; TASF-O = Technical Assistance Special Fund Other; TF = trust fund; WSM = water supply and other municipal infrastructure and services. a To be confirmed. Source: Asian Development Bank staff estimates. Appendix 2 7