Country Assistance Policy for the Republic of Indonesia

April, 2012

1. Relevance of Assistance

Indonesia is a core country of ASEAN, with the largest population and land area in the
region. It has the largest Muslim population in the world and is located in a strategically
important point of sea lanes such as the Strait of Malacca. Accordingly, stability of Indonesia
is indispensable to the stability and prosperity of the whole of Asia, including Japan.

Indonesia has recently enjoyed political stability and steady economic growth. As the
only G20 member joined from Southeast Asia, it plays a more and more important role in
international society. An attitude is also seen of actively addressing issues of the Asian region
and international society, such as measures against climate change and support for
democratization.

Indonesia is also a strategic partner for Japan, since it shares basic values in terms of
democracy, human rights, and market economy, and has long maintained good relations with
Japan at the country-wide level.

In addition, there are about 1,300 Japanese affiliated companies making inroads into
Indonesia, which becomes an important base for Japanese companies. While ASEAN
countries make efforts to enhance the connectivity within the region for the realization of the
ASEAN Community by 2015, expectations are further raised that Indonesia plays an
important role as one of the centers for a network of international production and trade.
Indonesia is a close economic partner for Japan, since it provides LNG, coal, and other energy
resources, and copper, nickel, and other mineral resources. Creating a better business and
investment environment and achieving further economic growth is important for not only
Indonesia but also the whole Asian region. At the same time, this is important for Japan
because the growth of Asia is the key element of the growth of Japan. After the
Japan-Indonesia Economic Partnership Agreement (JIEPA) came into effect in July 2008,
Japan and Indonesia signed a memorandum of cooperation on the Metropolitan Priority Areas
for Investment and Industry (MPA) in December 2010 to agree to cooperate in infrastructure
development. In this way, bilateral economic ties are expected to be strengthened.

In order that Indonesia may achieve further economic growth, it is necessary to improve
various regulations and systems in tandem with the enhanced economic partnership within
Asia, as well as the business and investment environment through infrastructure development,
and to professional human resource development.

In order that Indonesia may secure mid- and long-term stability, it is important to narrow an
income and regional gap within country by means of steady economic growth and its spillover
effect on rural areas, to secure employment opportunities, and to overcome vulnerabilities to
natural disaster and infectious diseases.

In addition, Indonesia is required to develop its capacity to further positively address issues of
the Asian region and international society.

1
2. Basic Policy of Assistance:
Assistance for well-balanced development and enhancement of capacity to address
issues of the Asian region and international society

Japan, as a strategic partner to Indonesia, with which Japan has long cherished a
friendship, will offer assistance for Indonesia’s well-balanced development, enhancement of
capacity to address issues of the Asian region and international society, building on further
economic growth of Indonesia. Indonesia is a core country of ASEAN which proceeds now
together to form a community, one of the important centers for economic activities in Asia,
and also a resource-abundant country. Japan will contribute to the stability and prosperity of
not only Indonesia, but also the Asian region including Japan and international society
through deepening and expanding a mutually beneficial relationship and partnership with
Indonesia.

3. Priority Areas

(1) Assistance for further economic growth

In order to accelerate economic growth led by the private sector, efforts will be made to
improve the business and investment environment by providing assistance for infrastructure
development especially in the Jakarta metropolitan area and for the improvement of various
regulations and systems in alignment with enhanced economic partnership within the Asian
region. At the same time, assistance is also provided forprofessional human resource
development.

(2) Assistance for correction of inequality and establishment of a safe society

In order to correct domestic inequality, and contribute to well-balanced development

and the establishment of a safe society, Japan will offer assistance for enhancement of internal
connectivity such as development of major transport and distribution networks, as well as
development of regional core areas. Japan will also offer assistance for Indonesia to improve
systems and organizations, which are intended for rural development, and take disaster
preventive measures.

(3) Assistance for the enhancement of capacity to address issues of Asian region and
international society

Japan will offer assistance that contributes to the enhancement of capacity required for
responding to issues of Asian region such as securing of maritime safety, measures against
terrorism and infectious diseases. At the same time, Japan will offer assistance for Indonesia
to address global issues such as environmental conservation and climate change, while
offering assistance that will help increase the capacity as a donor country.

4. Points to be considered1

1
Evaluation of ODA for Indonesia in the past is shown below.
Country Assistance Evaluation of Indonesia (2003):
http://www.mofa.go.jp/mofaj/gaiko/oda/shiryo/hyouka/kunibetu/gai/indonesia/kn3_01_index.html
Country Assistance Evaluation of Indonesia (2007)
http://www.mofa.go.jp/mofaj/gaiko/oda/shiryo/hyouka/kunibetu/gai/indonesia/kn07_01_index.html

2
 Since there is concern that smooth implementation of projects may be hindered by
complicated procedures within the government or other reasons, it is necessary to implement
projects more smoothly through continuous discussions on how to speed up the
implementation.

As for the infrastructure development, efforts should be made to mobilize private funds
by encourging to strengthen a scheme of public-private partnership (PPP). At the same time,
in order to utilize Japanese technology as much as possible, partnership with Japanese private
sector will be duly taken into consideration..

Attention is also to be paid to the point that governance such as improvement of legal
predictability and legal stability is important for promoting the improvement of the business
and investment environment.

Annex: Rolling Plan

3
Annex of the Country Assistance Policy
Rolling Plan for the Republic of Indonesia
　 As of April 2012
Basic Policy
Assistance for well-balanced development and enhancement of capacity to address issues of the Asian region and international society
of Assistance

Priority Area 1 Assistance for further economic growth

【Background and current situation】
Infrastructure development does not catch up with rapid economic growth in Indonesia. The lagged development is a hindrance to sustainable growth. Especially in the Jakarta
metropolitan area, an engine of Indonesia’s growth, there are serious problems such as a lack of transport infrastructure including land transportation, airports and harbors, and
its low quality, and a limit on power supply and its instability. In addition, development of urban infrastructure is also urgent, which is necessary for urban environment which fits
business activities and living. For further economic growth and employment creation, the above problems are required to be solved.
【Strategy】
In December, 2010, Indonesia and Japan signed a cooperative memorandum of Metropolitan Priority Areas for Investment and
Industry (MPA) project, which aims at newly creating the Jakarta metropolitan area. The MPA project shows a mid- and long-
term vision of the Jakarta metropolitan area based on secured sectorial cooperation while assuming an international and
domestic environment which surrounds the Jakarta metropolitan area in 2030. At the same time, a master plan is to be made
for the MPA project, concerning an ideal investment environment and infrastructure development in the Jakarta metropolitan
area as of 2020 based on the vision stated above. In addition, the MPA project aims at starting construction of infrastructure of
urgent need by the end of 2013 by regarding them as Fast Track Project candidates. Japan will provide assistance for the
development of infrastructure for transport, power, and urban foundation in the Jakarta metropolitan area by sticking to the MPA
project.

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Before Note
Program JFY JFY JFY JFY JFY (100 Million
JFY
2012 2013 2014 2015 2015 Yen)
2011

Project for the Study on JABODETABEK Public Transportation

TCDP
Policy Implementation Strategy
Stated also in the Institutional
Project on Capacity Building for Public-Private Partnership (PPP) Improvement Program relating to
TCP Business Environment, and Rural
Operation (Phase 2)
Development and Base Urban Area
Development program
Stated also in the Institutional
Improvement Program relating to
Planning and Institutional The Project for P3CU and PPP Network Enhancement TCP Business Environment, and Rural
Improvement Development and Base Urban Area
Development Program
Development Issue 1-
1
Study on Metropolitan Priority Areas for Investment and Industry
PS
Infrastructure (MPA) Master Plan
The program supports improvement of transport
development in
environment in the Jakarta metropolitan area in order to ASEAN-Japan Action Plan Environment on Environment Stated also in Climate Change
Jakarta Metropolitan MLIT-TA
realize further economic growth and more employment Improvement in the Transport Sector Countermeasure Program
Area
creation through investment promotion for the area.
Specifically, it supports (1) planning, institutional ASEAN-Japan Transport Information Platform Project MLIT-TA
improvement, and capacity building, (2) enhancement of
Program for transport mass transportation capacity, (3) expansion of road
environment capacity, (4) improvement of capacity to handle cargoes The Engineering Services for Jakarta Mass Rapid Transit System
LA 18.69
development in in ports, and (5) expansion of airport facilities and Project
Jakarta Metropolitan capacities, etc.
Jakarta MRT Project Advisor EXP
Area
[Goals of this program is now being discussed with the
Construction of Jakarta Mass Rapid Transit System Project (I) LA 481.50
Indonesian government so that this program may be
made through a program approach. Goals are to be Preparatory Survey on the Rail Transport Capacity Building Project
shown here as soon as the two countries reach an PS
Mass Transportation in Jakarta Metropolitan Area
agreement.] Preparatory Survey on the Jakarta Mass Rapid Transit System
Facilities PS
East-West Line Project
Railway Electrification and Double-Double Tracking of Java Main
LA 410.34
Line Project (I)
Preparatory Survey on Jakarta Transport and Urban Structure
Development Project using Dukuh Atas Station Area as a model PS
(PPP Infrastructure Project)
Depok Depot Construction Project LA 92.23

Stated also in Connectivity

Road Policy Advisor EXP
Enhancement Program

The Tanjung Priok Access Road Construction Project (I) LA 263.06

Roads
The Tanjung Priok Access Road Construction Project (II) LA 266.20
Preparatory Survey on the Highway Improvement Project in Jakarta
PS
Metropolitan Area
 Stated also in Connectivity
Port Policy Advisor EXP
Enhancement Program
Stated also in Connectivity
The Urgent Rehabilitation Project of Tanjung Priok Port LA 120.52
Enhancement Program
Program for transport Port
Project for Master Plan Study on Port Development and Logistics Stated also in Connectivity
environment TCDP 4.68
in Greater Jakarta Metropolitan Area Enhancement Program
development in
Preparatory Survey on the New Chiramaya Port Development Stated also in Connectivity
Jakarta Metropolitan PS
Project Enhancement Program
Area(same as above)
Project for the Master Plan Study on Multiple-Airport Development Stated also in Connectivity
Airport TCDP 2.40
for Greater Jakarta Metropolitan Area Enhancement Program

Training (9 cases) TR

PLN Operation Improvement System Project for Supporting

LA 44.98
Generation Facilities

Electric Power and Energy Policy Adviser EXP

Policy and system
Study for Promoting Practical Demand Side Management Program TCDP

Stated also in Climate Change

Project for Promotion of Clean Coal Technology (CCT) TCDP
Countermeasure Program

Muara Karang Gas Power Plant Project LA 557.50

The program supports enhancement of capacity to supply

Muara Tawar Gas Fired Power Plant Extension Project LA 181.82
power stably to the Java-Bali line which transmits power
to the metropolitan area, and the south Sumatra line
power grid which is scheduled to connect to the Java-Bali Tanjung Priok Gas Fired Power Plant Extension Project LA 586.79
line in order to stabilize power supply to the metropolitan
Development Issue 1- area and improve its reliability. In providing assistance,
Program for stable The Coal-Fired Power Plant Project in Indramayu (Study, design,
1 emphasis is placed on highly efficient power generation LA
power supply to and other duties)
which helps reduce environmental burden, power
Infrastructure Jakarta Metropolitan
generation with environmental friendly recyclable energy, Java-Sumatra Interconnection Transmission Line Project (Study,
development in Area LA 38.86
and enhancement of an energy transmission and design, and other duties)
Jakarta Metropolitan distribution system that has technical advantages. At the
Area (same as same time, assistance is also provided for the promotion Java - Sumatra Interconnection Transmission Line Project (I) LA 369.94
above) of demand-side energy saving, environmental Electric power
improvement for attracting private investment, etc., by infrastructure
Preparatory Survey on the Backbone Transmission Development
building up a system and funding projects. PS
Project in Midwestern Java

Stated also in Rural Development and

Semarang Power Plant Rehabilitation and Gasification Project LA 86.85 Base Urban Area Development
Program
Stated also in Rural Development and
Base Urban Area Development
Capacity Building for Enhancement of Geothermal Development TCP
Program, and Climate Change
Countermeasure Program
Stated also in Rural Development and
Engineering Services for Kamojang Geothermal Power Plant Base Urban Area Development
LA 9.95
Extension Project (Study, design, and other duties (E/S)) Program, and Climate Change
Countermeasure Program
Project for Capacity Development of Wastewater Sector through
TCP
reviewing the Wastewater Management Master Plan in DKI Jakarta
Water and sewerage
Survey on DKI Jakarta Sewerage Development Project PS

The program helps attract investment and business Preparatory Survey on Operation of Complex Intermediate
Program for urban Waste disposal PS
activities to the Jakarta metropolitan area, and supports Treatment Facilities and Final Disposal Site in West Java Province
infrastructure
the development of urban foundation necessary for the Stated also in Improvement Program
development in Project for Capacity Development of Jakarta Comprehensive Flood
development of urban environment that is comfortable to TCP for Disaster Prevention Capabilities
Jakarta Metropolitan Management
live in (water and sewerage, waste disposal, flood control, and Climate Change
Area
etc.). Flood control Stated also in Improvement Program
The Project for Urgent Reconstruction of East Pump Station of for Disaster Prevention Capabilities
GA 19.85
Pluit in Jakarta and Climate Change
Countermeasure Program

Training (1 case) TR
 【Background and current situation】
For sustainable development of Indonesia’s society and economy, further growth led by the private sector is necessary and such growth cannot be achieved without an improved
business and investment environment. Then, there are urgent issues, such as transparency and stability improvement for various legal systems (tax, customs, labor, intellectual
property, etc.), improvement of administrative procedures, and professional human resource development.
【Strategy】
In order to improve the business and investment environment in Indonesia, Japan supports institutional improvement and
capacity building for operating systems in the fields of investment and trade, intellectual property, competition policy, SME
promotion, human resource development, labor, tax affairs, finance, etc., based on Japan’s New Growth Strategies and other
policies, and companies’ needs of both countries. Japan also pays enough attention to the cooperation in line with the Japan-
Indonesia Economic Partnership Agreement (EPA). Assistance is also provided for strengthening infrastructure development
system through the public-private partnership (PPP) approach and promoting PPP projects.
In order to nurture high-level personnel, Japan supports human resource development which will contribute to the growth of
industries while giving consideration to strengthening of human network of two countries based on a network between base
universities in Indonesia, and universities in Japan and ASEAN, which have been long created by Japan.

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Before Note
Program JFY JFY JFY JFY JFY (100 Million
JFY
2012 2013 2014 2015 2015 Yen)
2011

Macroeconomics and Financial Field and International Cooperation EXP

Project on Modernization of Tax Administration (Phase 2) TCP

Macroeconomic, Financial Stated also in Rural Development and
and Monetary Policies Planning and Budgeting Reform for the Performance-Based
TCP 2.67 Base Urban Area Development
Budgeting (PBB) System Implementation
Program

International Economy Advisor EXP

Industry Development Advisor EXP

Capacity Development for Supporting Industry Development: Credit
TCP
Guarantee System

Nurturing of Small and Project for Welding Technique Improvement TCP

Medium-sized Enterprises,
Supporting Industries and Human Resource Development Project for SME Cluster Promotion TCP

Development Issue 1- Local Industries

Dispatching Expert EXP
2
Standardization and Quality Control for Horticulture Products of Stated also in Rural Development and
Business Indonesia (Improvement of Thermal Treatment Technique against TCP 2.80 Base Urban Area Development
Environment Fruit Flies on Fresh Mango) Program
Improvement and
Professional Human Stated also in Rural Development and
Resource Extension of assignment term of JICA Expert (Investment
EXP Base Urban Area Development
Development Promotion Policy Advisor) at BKPM
Program

Based on the consciousness of both countries’ Stated also in Development Program

companies, the program supports nurturing of domestic for Transport Environment in the
Program for Project on Capacity Building for Public-Private Partnership (PPP)
industries and supporting industries, institutional TCP Metropolitan Area, and Rural
improvement of Operation (Phase 2)
enhancement for PPP promotion (network enhancement Development and Base Urban Area
business Development Program
for relevant ministries, improvement of selection method
environment-related
for business operators, etc.), and improvement of the
systems Stated also in Development Program
business and investment environment, including creation
of PPP projects. for Transport Environment in the
The Project for P3CU and PPP Network Enhancement TCP Metropolitan Area, and Rural
Development and Base Urban Area
Development Program

Stated also in Rural Development and

Improvement of Trade and Long-term Funding Project for National Basic Infrastructure TCP Base Urban Area Development
Investment Environment Development Program

Stated also in Rural Development and

SEZ Development Master Plan Survey in Indonesia TCDP Base Urban Area Development
Program

Project on Service Improvement of NAFED TCP

The strengthening of the Utilization of Indonesia-Japan Economic
TCP
Partnership Agreement (IJEPA)
Project for Strengthening Intellectual Property Rights Protection TCP

Project for Competition Policy (Phase 2) TCP

Advisory of JICA Expert to the Ministry of Manpower and
EXP
Transmigration of the Republic of Indonesia

The Project for Developing Capacity of Employment Service Center TCP

Training (31 cases) TR

Dispatch of volunteers (3 cases) SV

 Policy Advisor for Higher Education EXP
The Project for Research and Education Development on
TCP
Information and Communication Technology in Institut Teknologi
Sepuluh Nopember (Phase 2)
Development Program for the Engineering Faculty of the
LA 78.01
Hasanudin University (UNHAS)

Technical Cooperation Project for the Development of the

TCP 3.00
Engineering Faculty of the Hasanudin University (UNHAS)

Development Program of the Institute Technology Bandung (III) LA 56.59

Development of Faculty of Medicine and Health Sciences of Syarif

LA 29.83
Hidayatullah State Islamic University
Development Issue 1-
2 Development Program for University of Indonesia LA 146.41

Business The program aims at improving Indonesia’s international competitiveness and Professional Human Resource Development Project (III) LA 97.17
Program for
Environment strengthening a human network between Indonesia and Japan through the
professional human
Improvement and assistance in nurturing personnel who will play a leading role in industrial and Identification of Anti-Hepatitis C Virus （HCV） Substances and
resource development STC 3.50
Professional Human academic fields in Indonesia. Development of HCV and Dengue Vaccines
Resource
Development (same
Stated also in Support Program for
as above) Wild Fire and Carbon Management in Peat-forest in Indonesia STC 2.15
Climate Change Countermeasures

Climate Variability Study and Societal Application through

Stated also in Support Program for
Indonesia-Japan "Maritime Continent COE"- Radar-Buoy Network STC
Climate Change Countermeasures
Optimization for Rainfall Prediction
Stated also in Support Program for
Project for Development of Internationally Standardized Microbial
Measures to Cope with Issues of the
Resources Center to Promote Life Science Research and STC
Asian Region and International
Biotechnology
Society

Multi-disciplinary Hazard Reduction from Earthquakes and Stated also in Improvement Program
STC
Volcanoes in Indonesia for Disaster Prevention Capabilities

Training (8 cases) TR
 Priority Area 2 Assistance for correction of inequality and establishment of a safe society
【Background and current situation】
Although Indonesia enjoys steady economic growth, concentration of economic activities to the islands of Java and Bali causes an economic gap between the two islands and
eastern or other islands, and reduction of the gap is now an important issue. In addition, Indonesia has promoted decentralization rapidly since around 2000 in order to implement
projects in line with actual local situations and improve public services. However, there is room for improvement due to some problems with capacity and systems of local
governments. As for poverty rate, it is steadily decreasing in recent years; however, there are many people who remain economically vulnerable. Half of the population lives on
two dollars or less a day.
The Indonesian government decided development strategies for seven regions under the National Medium-Term Development Plan (PRJMN) 2010-2014 in order to pursue an
economic development and a gap reduction based on the advantages of each region.
“Connectivity" improvement, which is regarded as an important policy issue in Indonesia made up of many islands, means the enhancement of movement of people, goods, and
information by improving infrastructure connecting regions and islands, and promotion of regional economies through the enhanced infrastructure. Indonesia made the Master
Plan for the Acceleration and Expansion of Indonesia's Economic Development 2011-2025 (MP3EI), which centers on six economic development corridors (IEDC).
【Strategy】
Japan supports development of key transportation networks connecting major regions, islands, and cities, as well as
development of urban infrastructure of base urban areas which are hubs for distribution of goods and people, including power
and resources development in rural areas in order to reduce a regional economic gap by means of promotion of regional
economic development.
In addition, Japan supports improvement and enhancement of systems and organizations that contribute to the promotion of
local development and reduction of an economic gap by utilizing the outcomes of the assistance extended so far in order to
develop infrastructure that enables well-balanced development.

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Before Note
Program JFY JFY JFY JFY JFY (100 Million
JFY
2012 2013 2014 2015 2015 Yen)
2011
Stated also in the Institutional
Project on Capacity Development for Trade-related Administration TCP Improvement Program relating to
Business Environment
Comprehensive
Institutional Improvement Distribution Mechanism Reform through Development of TCDP
Wholesale Market

Study for Digital Divide Resolution in the Republic of Indonesia with

MIC-TA 0.70
Japan’s Information Communication Technology

Preparatory Survey for Domestic Marine Transportation Promotion

PS
Project
Stated also in Development Program
Project for Master Plan Study on Port Development and Logistics
TCDP 4.68 for Transport Environment in the
in Greater Jakarta Metropolitan Area
Metropolitan Area
Stated also in Development Program
Preparatory Survey on the New Chiramaya Port Development
PS for Transport Environment in the
Project
Metropolitan Area
Stated also in Development Program
The Urgent Rehabilitation Project of Tanjung Priok Port LA 120.52 for Transport Environment in the
Metropolitan Area

Rehabilitation and Improvement Project of Jakarta Fishing Port LA 34.37

Development Issue 2-
1 Stated also in Support Program for
The Project for Enhancement of Vessel Traffic System in Malacca Measures to Cope with Issues of the
GA 14.32
Correction of and Singapore Straits (Phase 2) Asian Region and International
imbalance and Society
connectivity Stated also in Support Program for
enhancement Measures to Cope with Issues of the
Maritime Telecommunication System Development Project (IV) LA 55.67
Asian Region and International
Society

Maritime Transport and Stated also in Support Program for

Distribution The Project on BAKORKAMLA (Indonesian Maritime Security Measures to Cope with Issues of the
TCP
The program supports infrastructure development and Coordination Body) Structural Enhancement (Phase 2) Asian Region and International
Program for
institutional improvement, which help make movement of Society
connectivity
goods and people smoother between major regions,
enhancement Stated also in Support Program for
islands, and cities.
Technical Cooperation Project on Enhancing of Vessel Traffic Measures to Cope with Issues of the
TCP
Service System Management Capacity Asian Region and International
Society
Stated also in Support Program for
Measures to Cope with Issues of
Port Security Management Project (Phase 2) TCP
theAsian Region and International
Society

Stated also in Development Program

Port Policy Advisor EXP for Transport Environment in the
Metropolitan Area

ASEAN-Japan Logistics Partnership MLIT-TA

ASEAN-Japan Logistics Project MLIT-TA

ASEAN-Japan Maritime Transport Security Program MLIT-TA

ASEAN-Japan Port Technology Joint Research Project MLIT-TA

Indonesia-Japan Sea Port Seminar MLIT-TA

Stated also in Development Program

Road Policy Advisor EXP for Transport Environment in the
Metropolitan Area

Railway Double Tracking on Java South Line (II) LA 103.48

Railway Double Tracking on Java South Line (III) (Study and
LA 9.81
Land Transport and design)
Distribution 188.19
Railway Double Tracking on Java South Line (III) LA
Project on Capacity Building for Asset Management of Road and
TCP
Bridges
North Java Corridor Flyover Project LA 42.87

The Bandung Toll Road Project LA 136.05

 Stated also in Support Program for
Measures to Cope with Issues of
The Project for Improvement on Aviation Safety Policy TCP 4.20
Asian Region and International
Society
Stated also in Support Program for
The Project for Strengthening Capacity on Ensuring Safe and Measures to Cope with Issues of the
Program for Air Transportation and TCP
Efficient Aircraft Operations Asian Region and International
connectivity Distribution
Society
enhancement (Same
Project for the Master Plan Study on Multiple-Airport Development
as above) TCDP 2.40
for Greater Jakarta Metropolitan Area
Stated also in Development Program
The Project for Airport Security System Improvement GA 6.21 for Transport Environment in the
Metropolitan Area

Training (7 cases) TR

The Strengthening of Environment Management Capacity of Local Stated also in Climate Change
TCP
Governments Countermeasure Program

Stated also in the Institutional

SEZ Development Master Plan Survey in Indonesia TCDP Improvement Program relating to
Business Environment

Stated also in the Institutional

Planning and Budgeting Reform for the Performance-Based
TCP 2.67 Improvement Program relating to
Budgeting (PBB) System Implementation
Business Environment

Stated also in the Institutional

Extension of assignment term of JICA Expert (Investment
EXP Improvement Program relating to
Promotion Policy Advisor) at BKPM
Business Environment

Infrastructure Development Promotion Adviser EXP

Stated also in Development Program

for Transport Environment in the
Project on Capacity Building for Public-Private Partnership (PPP)
TCP Metropolitan Area and the
Operation (Phase 2)
Institutional Improvement Program
relating to Business Environment

Comprehensive Policy Stated also in Development Program

Improvement and Human for Transport Environment in the
Resource Development The Project for P3CU and PPP Network Enhancement TCP Metropolitan Area and the
Institutional Improvement Program
relating to Business Environment

Stated also in the Institutional

Long-term Funding Project for National Basic Infrastructure
TCP Improvement Program relating to
Development
Development Issue 2- Business Environment
1
PDAM Asset Management Support Project TCP
Correction of
imbalance and
connectivity Standardization and Quality Control for Horticulture Products of Stated also in the Institutional
enhancement (Same Indonesia (Improvement of Thermal Treatment Technique against TCP 2.80 Improvement Program relating to
as above) In order to pursue well-balanced local development, the Fruit Flies on Fresh Mango) Business Environment
program supports enhancement of capacity and systems
of local government and the central government engaged Policy Advisor on Regional Development in South Sulawesi
in local development, and administrative service EXP
Program for regional Province
capabilities of local governments, while it provides
development and
assistance for institutional and organizational
upgrading of regional Sulawesi Capacity Development Project TCP 6.79
enhancement, and capacity building which contribute to
metropolitan areas
gap reduction. At the same time, it provides assistance in
securing power and resources, and developing urban World Bank, Japan Policy and
infrastructure for major base urban areas which are hubs Local Government Reform Project ML ● 5 million USD Human Resource Development Fund
of movement of goods and people. (PHRD)

Stated in Stable Power Supply

Semarang Power Plant Rehabilitation and Gasification Project LA 86.85
Program to the Metropolitan Area

Keramasan Power Plant Extension Project LA 97.36

Capacity Building for Enhancement of the Geothermal Stated in Stable Power Supply
TCP
Development Program to the Metropolitan Area

Stated also in Climate Change

Lahendong Geothermal Power Plant Project LA 58.66
Countermeasure Program

Stated also in Climate Change

Ulubelu Geothermal Power Plant Project LA 202.28
Countermeasure Program

Stated also in Climate Change

Lumut Balai Geothermal Power Plant Project LA 269.66
Countermeasure Program
Local Power and
Resources Development Stated also in Climate Change
Project for the Master Plan Study of Hydropower Development TCDP
Countermeasure Program

Engineering Services for Asahan No.3 Hydroelectric Power Plant Stated also in Climate Change
LA 276.42
Construction Project Countermeasure Program

Stated also in Climate Change

Peusangan Hydroelectric Power Plant Construction Project LA 260.16
Countermeasure Program

North-West Sumatra Inter-connector Transmission Line

LA 161.19
Construction Project

Stated also in Climate Change

Geothermal Development Promotion Program LA 552.99
Countermeasure Program

Preparatory Survey on Capacity Expansion Project for Railway Line

PS
Lahat-Kertapati in South Sumatra
 Enhancement of Urban Development Management in the
TCP 3.00
Mamminasata Metropolitan Area

The Project for Water Supply Service Improvement in the

TCP 3.70
Mamminasata Metropolitan Area

Makassar Water Supply (Phase 2) PS

Waste Management Capacity Enhancement for Mamminasata TCP

Infrastructure
Regional Solid Waste Management for Mamminasata, South
Development in Base LA 35.43
Development Issue 2- Sulawesi
Urban Areas
1 Stated also in Climate Change
Program for regional Project for the Study on Waste Management Plan in Major Cities TCDP
development and Countermeasure Program
Correction of
upgrading of regional The Project for Development of Industry based on Local Resources
imbalance and TCP 3.26
metropolitan areas in South Sulawesi Province
connectivity
(Same as above) Individual Expert for Local Industry Promotion in Eastern Indonesia
enhancement (Same EXP
as above) (6 Provinces in Sulawesi Island)

Denpasar Sewerage Development Project (II) LA 60.04

Rural Infrastructure Development Project for Poverty Reduction LA 235.19

Training (31 cases) TR

Dispatch of volunteers (2 cases) SV

Dispatch of volunteers (7 cases) JOCV

 【Background and current situation】
Indonesia suffers much damage every year since natural disasters occur frequently, such as an earthquake, tsunami, eruption, flood, and landslide. In order to prevent damages
from such disasters, Indonesia has to tackle capacity building of both the National Agency for Disaster Management (BNPB) and the Regional Agency for Disaster Management
(BPBD) which are in charge of disaster management administration, flood management through comprehensive water resource control, and establishment of a system that
makes houses earthquake-resistant.
【Strategy】
Indonesia and Japan are both natural disaster-prone countries. The two countries are to make efforts to send both countries’
experiences to the world by establishing a cooperative relationship based on the knowledge and experiences, including recovery
from the Asian Tsunami in 2004 and lessons learned from the Great East Japan Earthquake. At the same time, assistance is to
be provided by focusing on improvement of the disaster prevention function of the Jakarta metropolitan area, the center of
Indonesia’s politics and economy based on experiences of flooding disasters in Thailand in 2011. Regional assistance as to
disaster prevention is examined by taking into account the relationship with the ASEAN Coordinating Center for Humanitarian
Assistance on Disaster Management (AHA center) in Jakarta and other factors.

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Before Note
Program JFY JFY JFY JFY JFY (100 Million
JFY
2012 2013 2014 2015 2015 Yen)
2011

Comprehensive Disaster Prevention Policy Advisor EXP

Multi-disciplinary Hazard Reduction from Earthquakes and Stated also in Professional Human
STC
Volcanoes in Indonesia Resource Development Program
The Project for Enhancement of the Disaster Management
Comprehensive Measures TCP
Capacity of BNPB and BPBD
Study on Introduction of ICT System to Disaster Prevention in
MIC-TA 0.70
Indonesia
Study on Establishment of Disaster Prevention System based on
Japan’s Information and Communications Technology and its MIC-TA 0.70
Effectiveness in Indonesia
Measures against Project on Building Administration and Enforcement Capacity
TCP
Earthquake and Tsunami Development for Seismic Resilience (Phase 2)

Integrated Disaster Mitigation Management for “Banjir Bandang" TCP

Urgent Disaster Reduction Project for Mt. Merapi / Progo River
LA 164.34
Basin and Mt. Bawakaraeng
Development Issue 2-
Stated also in Climate Change
2 Water Policy Adviser EXP
Countermeasure Program
Disaster management Lower Solo River Improvement Project (II) LA 93.45
and emergency The program pays special attention to disaster
response Flood Control Sector Loan LA 74.90
management capabilities of high-level disaster risk
regions, such as regions where disasters frequently
occur, and industry-dense and densely populated Sector Loan for Upper Citarum River Basin Improvement LA 33.11
Measures against Flood
Program for regions. Based on such attention, the program offers and Landslide Sector Loan for Flood Control on Upper Citarum River and its
improvement of assistance for improvement of disaster management LA 136.05
Branch Rivers
disaster management capacity at each stage, such as prevention
Water Resources Existing Facilities Rehabilitation and Capacity
capacity (preparations), emergency response, and recovery and LA 146.96
Improvement Project
reconstruction, centering on assistance for the
Project on Capacity Development for RBOs in Practical Water
development of disaster prevention infrastructure and TCP
Resources Management and Technology
enhancement of a comprehensive disaster prevention
system. Countermeasure for Comprehensive Water Resource and Flood in
LA 163.02
Semarang
Countermeasure for Sediment in Wonogiri Multipurpose Dam
LA 74.90
Reservoir (I)
Promoting Project for Geotechnical Disaster Prevention
JPP
Technology in hilly and Mountainous Areas in Indonesia
Stated also in Urban Foundation
Project for Capacity Development of Jakarta Comprehensive Flood Development Program in the
TCP
Management Metropolitan Area and Climate
Change Countermeasure Program
Disaster Management
Measures in Metropolitan Stated also in Urban Foundation
Area The Project for Urgent Reconstruction of East Pump Station of Development Program in the
GA 19.85
Pluit in Jakarta Metropolitan Area and Climate
Change Countermeasure Program
Emergency Broadband Wireless Access Network for Disaster
ML ● Asia-Pacific Telecommunity (APT)
Management
The Project for Improvement of Bridges in Nias Island GA 15.22
Restoration and other
Aceh Reconstruction Project LA 115.93
issues
Cooperation project with the Japan
Projects relating to Aceh Reconstruction Assistance (2 cases) ML ● 3.7 million USD
Fund for Poverty Reduction (JFPR)
managed by ADB
Training (18 cases) TR
 Priority Area 3 Assistance for the enhancement of capacity to address issues of Asian region and international society

【Background and current situation】 【Strategy】

GHG emissions from Indonesia are said to rank fourth in the world after China, the US, and Brazil as of 2005 when including CO 2 emissions caused by forest loss, deteriorated
peat land, and other reasons. Indonesia sets 26% reduction of GHG by 2020 as a national goal and places climate change countermeasures as an important policy issue.
Comprehensive assistance is to be extended, which combines policy and institutional assistance, and assistance for specific
mitigation and adaptation measures by using various schemes. As for climate change mitigation measures, Japan will help
Indonesia take measures concerning forests, energy, transport, waste, etc. At the same time, assistance is provided based on
Indonesian’s policies and National Action Plan for GHG Reduction (RAN-GRK), while keeping up with the progress in the
formation of a bilateral cooperative framework, such as a Bilateral Offsetting Credit Mechanism.

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Note
Program Before JFY JFY JFY JFY JFY (100 Million
JFY 2012 2013 2014 2015 2015 Yen)
2011
Climate Change Program Loan (CCPL) LA 954.07 Total value of I-III

Project of Capacity Development for Climate Change Strategies TCP

Environmental Policy Advisor EXP

Stated also in Rural Development and

Policy and comprehensive The Strengthening of Environment Management Capacity of Local
TCP Base Urban Area Development
issues Governments in Indonesia
Program

Study on Use of ICT for Climate Change Countermeasures and

ML ● Asia-Pacific Telecommunity (APT)
Environmental Conservation

Stated also in Development Program

ASEAN-Japan Action Plan on Environment Improvement in the
MLIT-TA for Transport Environment in the
Transport Sector (AJ-APEIT)
Metropolitan Area

Study on Support for the Development of Low Carbon Society

MOE-TA
through Co-Benefit Approach
Capacity Development of 3R and Domestic Solid Waste
TCP
Management system
Stated also in Rural Development and
Project for the Study on Waste Management Plan in Major Cities TCDP Base Urban Area Development
Program
Stated also in Stable Power Supply
Capacity Building for Enhancement of the Geothermal Program to the Metropolitan Area,
TCP
Development and Rural Development and Base
Urban Area Development Program
Stated also in Rural Development and
Development Issue 3- Project for the Master Plan Study of Hydropower Development TCDP Base Urban Area Development
1 Program
Response to climate
change The program provides assistance in creating an Stated also in Stable Power Supply
Study for Promoting Practical Demand Side Management Program TCDP
institution intended for the reduction of GHG emissions Program to the Metropolitan Area
and reducing adverse impacts of climate change. Japan Stated also in Stable Power Supply
will offer cooperation in curbing forest loss and Project for Promotion of Clean Coal Technology (CCT) TCDP
Program to the Metropolitan Area
Program for response deterioration, promoting highly efficient energy, energy
to climate change saving, and developing alternative energy, shifting to Stated also in Rural Development and
public transport, controlling wastes properly, controlling Lahendong Geothermal Power Plant Project LA 58.66 Base Urban Area Development
water resources comprehensively, etc., with a focus on Program
the improvement and development of policies and a Stated also in Rural Development and
system, and capacity building. Ulubelu Geothermal Power Plant Project LA 202.28 Base Urban Area Development
Program
Engineering Services for Kamojang Geothermal Power Plant Stated also in Stable Power Supply
LA 9.95
Reduction of GHG Extension Project (Study, design and other duties (E/S)) Program to the Metropolitan Area
emissions Stated also in Rural Development and
Lumut Balai Geothermal Power Plant Project LA 269.66 Base Urban Area Development
Program
Stated also in Rural Development and
Engineering Services for Asahan No. 3 Hydroelectric Power Plant
LA 276.42 Base Urban Area Development
Construction Project
Program

Stated also in Rural Development and

Peusangan Hydroelectric Power Plant Construction Project LA 260.16 Base Urban Area Development
Program
Stated also in Rural Development and
Geothermal Development Promotion Project LA 552.99 Base Urban Area Development
Program
Pilot Study for Carbon Sequestration and Monitoring in Gundih Stated also in Professional Human
STC
Area, Central Java Province, Indonesia Resource Development Program
Project for facilitating the implementation of National Forestry
TCP
Strategic Plan
Program of Community Development of Fires Control in Peat Land
TCP 5.30
Area

Stated also in Professional Human

Wild Fire and Carbon Management in Peat-forest in Indonesia STC 2.15
Resource Development Program
Project on Capacity Building for Restoration of Ecosystems in
TCP 3.80
Conservation Areas
Project for Facilitating Development of Wood Industry in Small
TCP
Diameter Logs Processing
0.49 million
Energy Conservation Project in Indonesia ML ● Japan-UNDP Partnership Fund
USD
 Climate Variability Study and Societal Application through Stated also in Professional Human
Indonesia-Japan "Maritime Continent COE"- Radar-Buoy Network STC
Resource Development Program
Optimization for Rainfall Prediction
Stated also in Improvement Program
Water Policy Adviser EXP
for Disaster Prevention Capacity
Development Issue 3- Climate Change Countermeasures Promotion Project in Solo and
TCDP
Reduction of Climate Brantas River Basin
1 Program for response
Change Impact Project for Capacity Development of Jakarta Comprehensive Flood Stated also in Urban Foundation
Response to climate to climate change TCP
change (Same as (Same as above) Management Development Program in the
above) Metropolitan Area and Improvement
The Project for Urgent Reconstruction of East Pump Station of Stated also in Urban Foundation
GA 19.85
Pluit in Jakarta Development Program in the
Study on Global Warming Countermeasures in Overseas Metropolitan Area and Improvement
MAFF-TA
Agriculture and Farming Villages (Survey on Enhancement
Measures for Disaster Management System in Farming Villages)
Training (15 cases) TR
 【Background and current situation】
While Indonesia has become a member of G20 countries and has a bigger voice in international politics and economy, it shows a positive attitude to international and regional
issues, and south-south cooperation. In particular, it is expected to play a leading role in policy coordination and institutional improvement, and in sharing democratization
experiences within ASEAN.
【Strategy】
While Japan will provide assistance for capacity building concerning maritime security and antiterrorism measures, and
measures against emergent infectious diseases, which are important for not only Indonesia but also neighboring countries
including Japan, assistance for biodiversity conservation will continue from a viewpoint of effective use of biological resources.
As for measures against emergent infectious diseases, assistance is to be in alignment with reference to the Japan’s Global
Health Policy 2011-2015, and various strategies and guidelines decided by WHO or other organizations.
Japan will support Indonesia’s efforts to support democratization of other countries by strengthening cooperation between two
countries in responding to international issues. At the same time, Japan will help Indonesia improve the ability to provide
assistance to other countries so that Indonesia may be one of the donor countries.

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Before Note
Program JFY JFY JFY JFY JFY (100 Million
JFY 2012 2013 2014 2015 2015 Yen)
2011
The Project for Enhancement of Vessel Traffic System in Malacca Stated also in Connectivity
GA 14.32
and Singapore Straits (Phase 2) Enhancement Program
Stated also in Connectivity
Maritime Telecommunication System Development Project (IV) LA 55.67
Enhancement Program
The Project on BAKORKAMLA (Indonesian Maritime Security Stated also in Connectivity
TCP
Coordination Body) Structural Enhancement (Phase 2) Enhancement Program
Technical Cooperation Project on Enhancing of Vessel Traffic Stated also in Connectivity
TCP
Service System Management Capacity Enhancement Program

Maritime Security and Stated also in Connectivity

Port Security Management Project (Phase 2) TCP
Antiterrorism Measures Enhancement Program

Stated also in Connectivity

The project for Improvement of Port Security System GA 5.45
Enhancement Program

Stated also in Connectivity

The project for Airport Security System Improvement GA 6.21
Enhancement Program

Stated also in Connectivity

The Project for Improvement on Aviation Safety Policy TCP 4.20
Enhancement Program

The Project for Strengthening Capacity on Ensuring Safe and Stated also in Connectivity
TCP
Development Issue 3- Efficient Aircraft Operations Enhancement Program
2
The Project to Deliver Safe Drugs to People in Indonesia TCP
Response to Issues
The Project to Enhance Surveillance System for Avian Influenza TCP 3.80
of Asian Region and
International Society Measures against
Emergent and Re- Health Policy Advisor EXP
The program supports improvement of Indonesia’s ability emergent Infectious
to cope with international and regional issues (maritime Diseases The Project to Enhance Planned Early Response System for
TCP
security and antiterrorism measures, measures against Infectious Diseases
Program for response
infectious diseases, biodiversity conservation, sharing of Project on Capacity Development of Animal Health Laboratory and
to issues of Asian TCP
democratization experiences with third countries, etc.). At on Local Animal Health System Development
region and
the same time, Japan will help improve Indonesia’s ability
international society Strategy for Strengthening Biodiversity Conservation through
to extend assistance to other countries so that Indonesia
itself can become a donor country through tripartite Appropriate National Park Management and Human Resources TCP
cooperation or other methods. Development
The Project on Mangrove Ecosystem Conservation and
TCP
Sustainable Use in the ASEAN Region
Project for Development of Internationally Standardized Microbial Stated also in Professional Human
Biodiversity Conservation Resources Center to Promote Life Science Research and STC
Resource Development Program
Biotechnology
Bali Mynah Conservation Project Program (Phase 3) JPP

Creation of co-existent and collaborative relationship between local

communities and Bali Barat National Park for conservation and JPP
management of natural resources and community empowerment

Project on Knowledge Management Development for Improvement

TP
of Aid Effectiveness
Training Course of Artificial Insemination on Dairy Cattle for
TTR
Developing Countries
Afghanistan “Community Health" (short program) TTR

Enhancement of Ability to Education for Computer-based Industrial Automation TTR

Offer Assistance
The Project for Strengthening the Capacity of Tumba College of
TEXP/TTR
Technology (Rwanda)
Capacity Building for Poverty Reduction TTR
Micro Finance for African Region: Establishing Micro Finance
TTR
Institution (MFI) (The Third Country Training)
The International Training Program on Documentary TV Program
TTR
Production for Asian and African Countries
Training (24 cases) TR
 Other

Schedule Assistance
Japan's Assistance Amount
Program Summary Project Scheme Before Note
Program JFY JFY JFY JFY JFY (100 Million
JFY 2012 2013 2014 2015 2015 Yen)
2011
Project for Supporting the Implementation of Irrigation Asset
TCP 81.25
Management

Smallholder Irrigation Management Project (IV) LA 270.35

Komering Irrigation Project (II-2) LA 137.90

Participatory Irrigation Rehabilitation and Improvement

LA 123.10
Management Project

Smallholder Irrigation Management Project (V) LA 89.67

Project Type Sector Loan for Water Resources Development (II) LA 186.76
Preparatory Survey on Sales Project of Steel Slag Soil Conditioner
for Devastated Land and Barren Farmland due to Oxidation in Peat PS
Land
Cooperation projects with the Japan
Reinforced Rice Production for the Poor ML ● 2 million USD Fund for Poverty Reduction (JFPR)
Stable Food Supply managed by ADB

Study on Transparency Improvement of Agricultural Market with

ML ● Asia-Pacific Telecommunity (APT)
Mobile Phones
Contribution to the ASEAN
Capacity Building Project for Asian Developing Countries ML ● ● ●
secretariat
Project on Reinforcement to Improve Food Security Information in Contribution to the ASEAN
ML ●
the Asian Region secretariat
Other Project on Development of Mid-long Term Food Supply and Contribution to the ASEAN
ML ● ● ●
Demand Forecasting in the ASEAN+3 Region secretariat
Other
Funding for Substantial Start of ASEAN plus Three Emergency Contribution to the ASEAN
ML ●
Rice Reserve (APTERR) secretariat

Funding Support for the Establishment of the ASEAN plus Three Contribution to the ASEAN
ML ●
Emergency Rice Reserve (APTERR) secretariat

Study on Transparency Improvement of Agricultural Market with

ML ● Asia-Pacific Telecommunity (APT)
Mobile Phones
Technical Support for Strengthening the Regional Based Education
TCP
Management (Maluku)

Elementary and Program for Enhancing Quality of Junior Secondary Education TCP 6.60
Secondary Education ICT Utilization Project for Educational Quality Enhancement in
LA 29.11
Yogyakarta Province
World Bank and Japan Social
Education for Very Poor Children ML ● 1.33 million USD
Development Fund (JSDF)
Project for Enhancement of Nursing Competency through In-
TCP
Service Training
Healthcare
Project for Improvement of District Health Management Capacity in
TCP
South Sulawesi Province (Phase 2)
Advisor to the Chief of Indonesian National Police/Program
EXP
Manager for Reform of Indonesian National Police
Long-term Expert in the field of POLMAS (Community Policing in
EXP
INP)
Democratization of the
Police Training Course Planning/Program Coordinator EXP
Support Program for Reform of Indonesian National Police (Phase
TCP 7.80
2)
Project on "Building a Society with a Sense of Safety in Bali" TCP
 Development Project for National Spatial Data Infrastructure LA 63.73

National Procurement Improvement Project TCP

The Project for Construction of Bridges in the Province of Nusa

GA 4.92
Tenggara Barat (phase II)
Environmentally-friendly Regional Development with Multiple Use
JNGA 0.4
of Jatropha in Indonesia (III)

Realizing Minimum Living Standards for Disadvantaged

2,17 million World Bank and Japan Social
Communities through Peace Building and Village-Based Economic ML ● ●
USD Development Fund (JSDF)
Development
Project for Connection Improvement of Rural Area for Sustainable 1.30 million World Bank and Japan Social
ML ●
Living USD Development Fund (JSDF)
Other Other 1.57 million World Bank and Japan Social
Creative Communities Fund ML ●
USD Development Fund (JSDF)
1.58 million World Bank and Japan Social
Improving Food Security by Empowering Poor Women ML ●
USD Development Fund (JSDF))
1.74 million World Bank and Japan Social
Poverty Reduction and Women’s Leadership: The “Prime" Project ML ● ●
USD Development Fund (JSDF)

Protecting and Empowering Victims of Trafficking in Indonesia ML ● ● 2.27 UN Trust Fund for Human Security

Dispatch of volunteers (30 cases) JOCV

Dispatch of volunteers (14 cases) SV

Training (72 cases) TR

The Project on the Establishment of Community Network for

Sustainable Development through Environmental Activities at a JPP
Model Primary School

Legend: [PS] = Preparatory Survey, [DD] = Detailed Design, [TCP] = Technical Cooperation Project, [TCDP] = Technical Cooperation for Development Planning, [EXP] = Expert, [EQ] = Equipment, [CTR] = Country-focused Training, [TR] = Issue-based Training / Training Program for Young Leaders, [JOCV] = Japan Overseas
Cooperation Volunteers, [SV] = Senior Volunteers, [TEXP] = Third-country Expert, [TTR] = Third-country Training, [STC] = Science and Technology Cooperation on Global Issues, [JPP] = JICA Partnership Program, [xx-TA] = Technical Assistance implemented by organizations other than MOFA and JICA, [GA] = Grant Aid (other
than specific grant aid schemes listed below), [NPGA] = Non-Project Grant Aid, [GHGA] = Grassroots Human Security Grant Aid, [JNGA] = Grant Aid for Japanese NGO's Projects, [CGA] = Cultural Grant Aid, [GCGA] = Grassroots Cultural Grant Aid, [LA] = Loan Aid (ODA Loan), [ML] = Multilateral Cooperation, Solid Line [--------
] = Schedule, Dash Line [- - - - -] = Tentative Schedule, [●] = Implementation year of Multirateral Assistance