53591 Content CONTENT 2 Table of contents.................................................................................. 3 List of Figures & Tables......................................................................... 4 Abbreviations & Acronyms.................................................................... 5 Statement from the National Agency for Planning & Development........ 6 Statement from Government Stakeholders.......................................... 7 Foreword from the Trustee................................................................... 8 Remarks from the Donors..................................................................... 9 Acknowledgements.............................................................................. 10 Executive Summary............................................................................... 12 Chapter 1: Overview of the Java Reconstruction Fund........................... 16 Chapter 2: Project Portfolio Performance.............................................. 17 Overview........................................................................................................ 18 Key Results Achieved by the Java Reconstruction Fund................................... 19 2.1 Recovery of Housing and Community Infrastructure................. 27 2.2 Recovery of Livelihoods............................................................ 36 Chapter 3: Communication: Reaching Out to the Public and Enhancing Visibility 37 Public Outreach and Managing Feedback....................................................... 41 Leveraging Communication Tools................................................................... 41 Increasing Visibility Coverage of the Java Reconstruction Fund........................ 42 Chapter 4: Finance............................................................................... 43 Pledges.......................................................................................................... 43 Allocations..................................................................................................... 45 Disbursements............................................................................................... 45 Outlook......................................................................................................... 46 Chapter 5 Looking Ahead..................................................................... A woman works at a construction site for a community center in Selopamioro Photo: Inge Susilo 2 | JRF PROGRESS REPORT 2009 List of Figures, Tables & Box Stories List of Figures FIGURE 2.1: LIVELIHOOD VILLAGE BENEFICIARY MAPPING.................................................... 30 FIGURE 3.1: IOM COMPLAINTS HANDLING AND ANTI-CORRUPTION POSTERS...................... 38 FIGURE 3.2: COVERAGE FROM THE JAKARTA POST.............................................................. 41 FIGURE 4.1: JRF EXPECTED ALLOCATION BY SECTORS.......................................................... 45 List of Tables TABLE 1.1: ESTIMATED SHORTFALL IN GOVERNMENT FUNDING........................................... 13 TABLE 2.1: JRF FINANCED PROJECTS..................................................................................... 17 TABLE 2.2: IMPLEMENTATION PERIOD OF JRF FUNDED PROJECTS......................................... 17 TABLE 2.3: JRF LIVELIHOODS RECOVERY PROJECTS AT A GLANCE....................................... 28 TABLE 4.1: SOURCES OF PLEDGES AND CASH...................................................................... 43 TABLE 4.2: DISBURSEMENTS TO PROJECTS AS OF MARCH 31, 2009.................................... 45 List of Box Stories BOX 2.1 COMMUNITY SETTLEMENT PLANNING CREATES PARTICIPATORY BUZZ.................. 23 BOX 2.2 COMMUNITY SETTLEMENT PLANNING SHINES A LIGHT ON WOMEN...................... 25 BOX 2.3 ENSURING GENDER EQUALITY IN IOM PROJECTS.................................................... 34 BOX 3.1 MIS BUILD TRANSPARANCY, ACCOUNTABILITY...................................................... 39 Photo: Heri Wahyudi JRF PROGRESS REPORT 2009 | 3 Abbreviations & Acronyms Abbreviations & Acronyms AusAID Australian Agency for International Development BAPPEDA Regional Planning Board BAPPENAS National Planning Board BKM Badan Keswadayaan Masyarakat BPR Bank Perkreditan Rakyat (Peoples Credit Banks) CHF Corporate Housing Foundation CSP Community Settlement Plan CSRRP Community Settlement Reconstruction and Rehabilitation Project DIY Daerah Istimewa Yogyakarta (Special Region of Yogyakarta) DMC District Management Consultant DRR Disaster Risk Reduction EC European Commission ERA Early Recovery Assistance Program (ERA-UNDP) EUR European Currency Euro FAO Food and Agriculture Organisation (UN) GOI Government of Indonesia GRDP Gross Regional Domestic Product GTZ German Agency for Technical Cooperation INGO International Non Government Organization IOM International Organization for Migration JRF Java Reconstruction Fund KDP Sub district Development Program MDF Multi Donor Fund MICRA Microfinance and Innovation Centre for Resources and Alternatives MFI Micro Finance Institutions MOU Memorandum of Understanding MSMEs Micro, Small and Medium Size Enterprises MSEs Micro and Small Enterprises MPW Ministry of Public Works MTR Mid-Term Review (funded by EC) NGO Non Government Organization NMC National Management Cosultant PAD Project Appraisal Document PCN Project Concept Note PNM Permodalan Nasional Madani (State-owned bank) PNPM National Community Empowerment Program ProFI Promotion of Small Financial Institutions Rp Indonesian Rupiah RR Reconstruction and Rehabilitation SPADA Support for Poor and Disadvantaged Areas SPFS Special Program for Food Security (UNFAO) T-Shelter Transitional Shelters TTN National Technical Team for Rehabilitation and Reconstruction UNDP United Nations Development Program US$ United States Dollar YCAP Yogyakarta Central Java Community Assistance Program (AusAID) 4 | JRF PROGRESS REPORT 2009 Statement & Foreword Statement from the National Development Planning Agency (BAPPENAS) With the National Coordinating Team for Rehabilitation and Reconstruction and the National Technical Team (TTN) ending their mandate in the third quarter of 2008, the National Development Planning Agency (BAPPENAS) has taken over the reconstruction efforts for the Provinces of Yogyakarta Special Region, Central Java, and West Java that were affected by the 2006 earthquake and tsunami. BAPPENAS would like to take this opportunity to acknowledge the tremendous achievements of the National Coordinating Team and National Technical Team in ensuring a consolidated effort in identifying needs, through consultations with various reconstruction players, towards delivering results. The commendable effort is considered as one of the fastest recovery in the world. We are humbled by the accomplishments of the rehabilitation and rebuilding of 532,000 earthquake resistant houses in only eighteen months after the disaster. In addition, major infrastructure and public facilities were reconstructed within the team's tenure. This rapid, on-schedule delivery certainly will be a challenge to repeat. BAPPENAS is now tasked with the responsibility to continue the coordinating role to identify remaining needs, coordinate with local governments and other reconstruction players to ensure successful delivery of the final phases of the Java reconstruction and rehabilitation. BAPPENAS also has conducted a Monitoring and Evaluation exercise in mid 2008 which concludes that resources are needed towards recovery of community infrastructure and livelihoods that were impacted by the earthquake, as well as mitigating disaster risk reduction Jakarta, June 2009 against future events. Dr. Suprayoga Hadi BAPPENAS looks forward to the partnership with the Director for Special Area and Java Reconstruction Fund and its seven donors to further Disadvantaged Region, support the Government's agenda in Java Reconstruction as Chairman of Secretariat for and Rehabilitation to rebuild communities that benefit Planning and Monitoring Disaster citizens of the affected regions in the Provinces of Management, BAPPENAS Yogyakarta Special Region, Central Java and West Java. JRF PROGRESS REPORT 2009 | 5 Statement & Foreword Statement from Government Stakeholders Photo: Inge Susilo A Technical review discussion between the regional governments, donors, projects and the Secretariat The governments of Special Region of Yogyakarta (DIY), Central Java and West Java are pleased to see the progress and benefits of the Java Reconstruction Fund projects. We have witnessed phases of reconstruction to provide communities short term needs in the forms of transitional housing, medium term needs on permanent housing and community infrastructure, and longer term impact on the recovery of livelihoods. All three phases were conducted expeditiously and well targeted for people of DIY, Central Java, West Java to resume their lives quickly post earthquake and tsunami. The transitional housing provided opportunity for families to monitor the reconstruction of their permanent homes right on site. These permanent housing provided some families building materials for their permanent homes and others as extension to their homes. With houses constructed, beneficiaries were able to resume some income generating activities directly from their homes. Families are now returning to work in their paddy fields The JRF remains or community plantations, and rebuilding their former businesses and our important livelihoods. For these efforts to be sustainable and to minimize damages partner to property as well as disruption to people's lives and livelihoods in similar in quality events in the future, we need a carefully planned disaster risk reduction implementation strategy. of community based The Java Reconstruction Fund remains our important partner in quality development implementation of community based development projects post disaster. 6 | JRF PROGRESS REPORT 2009 Statement & Foreword Foreword from the Trustee Bappenas has been instrumental in involving local governments in the governance of the JRF Photo: Nia Sarinastiti The World Bank as Trustee of the Java Reconstruction Fund would like to bid farewell to the National Coordinating Team for Reconstruction and Rehabilitation Team and the National Technical Team who have successfully delivered their mandated tasks in the Government of Indonesia's efforts to rebuild Special Region of Yogyakarta, Central Java, and West Java. We look forward to continuing our partnership with GOI, specifically with Bappenas, which has already been active in JRF activities. Bappenas has been instrumental in involving local governments in the governance of the Java Reconstruction Fund. We strongly believe this partnership with the different levels of governments will bring increased synergies and quality to the JRF projects to benefit the people of post-disaster Java. JRF has grown over the last year. We would like to thank the Asian Development Bank (ADB) for providing additional money into the pool of funds. The ADB states that the best way its fund can be spent in a meaningful way is to contribute it to the JRF. We are proud to be selected. To be able to meet the remaining needs and provide meaningful impact, the Java Reconstruction Fund is now extend to December 2010. With this extension, we look forward to the next phase of reconstruction with a focus on the recovery of livelihoods and disaster risk mitigation. Joachim von Amsberg World Bank Country Director JRF PROGRESS REPORT 2009 | 7 Statement & Foreword Statement from the Donors In the course of the last year, the Government of Indonesia's specially appointed National Coordination Team for Reconstruction and Rehabilitation of the Special Region of Yogyakarta (DIY), Central and West Java completed its mandate and responsibilities. The Donors would like to take this opportunity to thank the National Coordinating Team for its leadership of the reconstruction efforts. We would also like to express our appreciation of the guidance and technical inputs of the National Technical Team members over the past three years. In the coming months we look forward to building upon our relationship with BAPPENAS which has been mandated by the Government to support the coordination of the remaining rehabilitation activities of the JRF. The Agency's Photo: Inge Susilo thorough understanding of the needs of communities Donors visit to housing beneficiary in Sumbermulio affected by the disasters will be a great asset to the JRF in the efficient allocation of remaining funds, and in the effort to reach more people still in need. We will of course continue to work closely with our local governments partners and appreciate their continued collaboration and commitment to the rehabilitation efforts of the JRF. We are particularly pleased to note from the JRF Mid Term Review that the projects financed by the JRF are considered highly relevant and fully in line with the Government of Indonesia's objectives for the rehabilitation and recovery effort. We believe that the quick response of the Government was a major factor to push for the implementation of the JRF community housing and infrastructure projects. Lessons learned from the Government's early efforts include the importance of high quality technical aspects such as the use of larger steel poles, stronger foundation, and cross beams; as well as the use of a community-based approach to the reconstruction and rehabilitation efforts We are which was successfully implemented, complementing the particularly principle of `gotong-royong'. pleased to note from the We now look forward to the final phase of our partnership JRF Mid Term with all stakeholders of the Java Reconstruction Fund. This Review that the phase will focus primarily on the implementation of the projects financed livelihoods recovery projects. We fully expect that these by the JRF are projects will make a significant contribution to rebuilding considered highly the local economy in the affected areas and enabling the relevant communities to prosper. 8 | JRF PROGRESS REPORT 2009 Acknowledgements Acknowledgements Photo: Nia Sarinastiti World Bank Managing Director Juan Jose Daboub visited the JRF housing project in Prambanan This report was prepared by the Secretariat of the Java Reconstruction Fund under the supervision of Shamima Khan with contributions from the project teams. The Java Reconstruction Fund Secretariat core team includes: Sarosh Khan, Nia Sarinastiti, Lina Lo, Shaun Parker, Anita Kendrick, Lanny Oktavia, and Heri Wahyudi with support from Gabriela Inge Maria Susilo and Rachmawati Dyah Swandari. The following colleagues contributed to the report: from the World Bank Infrastructure Unit George Soraya, Indira Dharmapatni, Sri Probo Sudarmo, Yuli Safitri Widyawati, Purnomo Sutantyo, Parwoto Sugjanto Yana Uno, and Marina and the World Bank Poverty Reduction and Economic Management team, Hormoz Aghadey and Nancy Chen and the project implementing team, Johan Grundberg and Cleo Hennesy of International Organization for Migration and Gerrit Plum of GTZ The Secretariat would like to acknowledge The National Development Planning Agency, specifically the office of the Special Area and Disadvantaged Region, Ministry of Public Works' Human Settlement Directorate General, and the ex-National Technical Agency (TTN) for Special region for Yogyakarta and Central Java and local governments for providing additional data for the report. Special recognition goes to Chris Tumelep for writing the stories from the field and the project teams, National Management Consultant and District Management Consultant, for arranging field trips for Donors and the Secretariat and extending their help to ensure that all activities with beneficiaries are effective. The design and layout of this report were developed by Kojo Communications and printed by Mardi Mulyo. We thank them for their efforts in delivering the report in such short time. We would also like to thank Donors of the Java Reconstruction Fund: the European Commission and the governments of Netherlands, the United Kingdom, Canada, Finland and Denmark, as well as ADB for their contributions, and their delegates for their active participation in all aspects of the JRF activities. JRF PROGRESS REPORT 2009 | 9 Executive Summary Executive Summary A grandmother takes care of her grandson in Krakitan Village, Klaten Photo: Nia Sarinastiti T he Java Reconstruction Fund (JRF) was established at the request of the Government of Indonesia to support the governments' reconstruction and rehabilitation efforts in post-earthquake Special Region of Yogyakarta (DIY) and Central Java. The JRF is managed by the World Bank with contributions totaling US$ 94 million from the European Commission and the governments of the Netherlands, the United Kingdom, Canada, Finland, and Denmark, as well as the Asian Development Bank. The JRF also covers West Java affected by a tsunami that hit the southern shores of the area two months after the earthquake. The National Planning Agency, Bappenas, and the provincial planning agency, Bappeda have assumed the reconstruction coordination role. The mandate of the National Coordinating Team for Rehabilitation and Reconstruction and the National Technical Team (TTN) setup by a Presidential Decree in 2006 ended in the third quarter of 2008. Since the closure of the National Team and the TTN, the Java Reconstruction Fund has continued its mandate by working directly with the National Planning and Development Agency (BAPPENAS), the regional planning and development boards, and local governments at the provincial and district levels. Overall the portfolio is Overall, the portfolio is performing well, with significant achievements performing well and impact on the ground. Housing reconstruction targets have been achieved, 10 | JRF PROGRESS REPORT 2009 Executive Summary with more than 15,000 families now living in earthquake resistant housing. As a result, many small, home-based businesses resumed their income generating activities. The JRF aligned with the GOI's priorities and directed most of its resources available during the first half of its mandate, to reconstruction of housing and infrastructure. In its next phase, two projects have been launched focusing on assisting small and medium enterprises (SMEs) affected by the earthquake to support recovery of livelihoods affected by the disaster. At mid term, the Community Based Housing Project (CSRRP) is in full swing with its community settlement planning (CSP) and its implementation gaining traction. The project also introduced DRR elements into CSPs in selected villages. Based on the lessons learned, the project team is exploring opportunities to mainstream DRR into community planning and budgeting for additional villages. Overall, 530 community infrastructure sub-projects are underway, such as constructing roads and pathways, retaining walls, sanitation and waste management, water resources catchments, and bridges; Of the projects, 70% have been completed and the remaining are in various stages of construction. Two projects under implementation by International Organization of Migration (IOM) and GTZ are addressing the most significant barrier to livelihoods recovery, access to finance, have achieved a significant milestone in delivering results. The PNM agreements with GTZ and IOM will enable the first batch of beneficiaries to receive micro credits by the next quarter of 2009. Permodalan Nasional Madani or PNM, being the apex institution to channel funds to beneficiaries, is crucial in the micro-financing scheme for the micro and small enterprises (MSEs) and the micro, small and medium sized enterprises (MSMEs). IOM is also focusing on MSEs directly by replacing assets, while GTZ is focusing on assisting medium sized enterprises in restructuring loans and restoring capacity and improving competitiveness. The projects have targeted 13,000 SMEs in DIY and Central Java. Of the JRF total contributions at US$ 94 million, 80% have been allocated to projects. Over 71% of these funds are channeled through the budget of the Government of Indonesia. As of March 2009, 72% of the allocations have been disbursed. The remaining unallocated funds total at approximately U$ 18 million. An independent Mid-Term Review (MTR) of the JRF portfolio was commissioned by the the European Commission (EC) in February/March 2009. The review rates the JRF as a highly relevant program, fully in line with GoI objectives for the reconstruction and rehabilitation of the Special Region of Yogyakarta, Central Java and West Java. The review notes the success of the community based approaches resulted in efficient delivery of the program; it also notes the livelihoods projects have experienced significant startup delays. The Secretariat of the JRF commissioned a Stocktaking and Gap Analysis to assess the remaining reconstruction needs. The goal of the analysis was to take stock of the reconstruction and recovery efforts by the Government of Indonesia, JRF as well as other donor-funded interventions; and assess the remaining needs the JRF could address within its mandate and program lifespan. Possible expansion of the community settlement planning, mainstreaming disaster risk reduction (DRR), and a few other proposed initiatives will be considered for financing, based on the findings of the assessment of remaining needs. The JRF is expected to be extended to December 2011 to meet remaining reconstruction needs, complete implementation of current projects on livelihoods recovery, and ensure disaster risk reduction is mainstreamed into community planning. Looking ahead, priority will be on programming the remaining JRF funds to complete implementation. Current projects should work closely and align with local government priorities. Livelihoods projects are well positioned to support MSEs; however the needs are also changing on the ground. Therefore monitoring and assessment of projects should be done continuously. JRF PROGRESS REPORT 2009 | 11 Project Portfolio Performance CHAPTER TWO Project Portfolio Performance Photo: Nia Sarinastiti A dam constructed in Wonolelo Village, Bantul provides irrigation and controls flooding 16 | JRF PROGRESS REPORT 2009 Project Portfolio Performance Members of a Village in Pangandaran gather to decide on the Village Leader for Community planning Photo: Nia Sarinastiti Overview O verall, the portfolio is performing well, with very significant achievements and impact on the ground. The Housing reconstruction targets were achieved by having more than 15,000 families now live in earthquake resistant housing. As a result, many small home- based businesses assisted resumed their income generating activities. The JRF had aligned with the Government of Indonesia's priorities and directed all its resources, available in the first half of its mandate, to reconstruction of housing and infrastructure. In its next phase, JRF has launched two projects focusing on assisting small and medium enterprises (SMEs) affected by the earthquake. For the last year, implementation of the Java Reconstruction Fund's Housing and Community Infrastructure Project (CSRRP) focused particularly on the community settlement planning (CSP) component. The livelihoods recovery projects have launched, with all implementing agencies starting their first phase of activities. Table 2.1: JRF Financed Projects Implementing No. Projects Agency Amounth 1 Transitional Housing Projects IOM and CHF US$ 2.32 million 2 Housing and Community Infrastructure (CSRRP) Ministry of Public Works US$ 60 million 3 Access to Finance and Capacity Building of Earthquake IOM US$ 4.48 million Affected Micro and Small Enterprises 4 Livelihood Recovery for Yogyakarta and Central Java GTZ US$ 10.76 million Table 2.2: Implementation Period of JRF Funded Projects No. Area of JRF Support 2006 2007 2008 2009 2010 2011 Recovery of Housing and Community Infrastructure Transitional Housing Housing and Community Infrastructure (CSRRP) Possible extension Recovery of Livelihoods Rehabilitation of Micro/Small/Medium Enterprises Possible JRF Mandate extension JRF PROGRESS REPORT 2009 | 17 Project Portfolio Performance Key Results Achieved by the Java Reconstruction Fund JRF initially focused on providing almost 7,000 families transitional housing that met immediate shelter needs and enabled them to resume their day to day activities. Some of these JRF financed transitional houses continue to be used; approximately 20% of these families have re-used material from transitional houses for their permanent houses. Some are modified as animal shelters, kitchens, and others as children's playground. The JRF has provided 15,153 families permanent, earthquake resistant houses completed under the Housing and Community Infrastructure Project. The project has increasingly focused on the second component, implementing the Community Settlement Plan (CSP) and reconstructing community infrastructure, starting in mid 2008. The implementation of the second phase has progressed well despite initial delays. As of to date, 80 of the 101 villages have completed their CSP; while 63 villages have completed reconstruction under their first tranche of disbursement and 20 villages have started based on their second tranche. The JRF Recovery of Livelihood projects implemented by IOM and GTZ have faced some startup delays in the negotiations of their respective Grant Agreements. IOM's Grant Agreement was signed by all parties by December 2008 and the project was effective in March 2009. The GTZ's Grant Agreement was signed in February and the project was effective in May 2009. Under a retro-active financing scheme, both IOM and GTZ commenced some project activities in March 2008 and May 2008, respectively. The recently completed mid-term review (MTR) commissioned by the European Commission found the JRF interventions, particularly in the field of temporary shelters and housing, to have had high impact and sustainable. The review noted that it is too early to assess the effectiveness, impact and sustainability of the livelihoods projects. Photo: Didik Wahyudi Villagers constructing an access in Gantiwarno, Klaten 18 | JRF PROGRESS REPORT 2009 2.1 Recovery of Housing and Community Infrastructure Transitional Housing Projects The JRF financed two projects on transitional housing aimed to provide safe and durable homes to eligible earthquake-affected families while permanent houses are being reconstructed. These projects were successfully completed and closed with objectives achieved. Grant Amount US$2.32 million (revised; original US$6.64 million) Implementation Period December 2006 to August 2007 Partner Agency World Bank Implementing Agency International Organization of Migration (IOM) and Cooperative Housing Foundation (CHF) Disbursements US$2.32 million An Implementation Completion Report prepared by the World Bank in June 2008 stated that the projects achieved its development objective. This is supported by the Mid Term Review of the Java Reconstruction Fund that stated the project is rated as highly relevant because the JRF covered the critical gap of remaining shelters need. The project was developed to deliver 24,000 transitional houses. However, given the rapid reconstruction of permanent housing, the demand for transitional housing reduced significantly. As a result, the project targets were not met in numbers. However, the project's development objective of responding to the most basic needs of households affected by the earthquake through the provision of Roof Structures as a transition to permanent housing was successfully met. At the time the JRF transitional housing project started, the recovery efforts in DIY and Central Java were quite advanced and the need for further transitional shelter assistance was less than initially anticipated. Although the actual output was below the initial targets, it is important to stress that this project was able to complement the exceptionally successful government permanent housing reconstruction program by bridging the shelter gap between immediate housing needs and permanent housing. Both implementing agencies, IOM and CHF, provided good quality transitional housing under difficult circumstances with high beneficiary satisfaction. Even for those beneficiaries who have received permanent housing assistance, transitional shelters are still being utilized, though not in their original intend, with more than 90% of recipients stressing the continued satisfaction with the structures. Project Results A total of 4,434 families received and constructed transitional houses. IOM provided 1,586 transitional houses and CHF provided 2,848 transitional houses that conformed to the pre-agreed specifications. After meeting the remaining needs of temporary housing, the projects closed in June 2007 for IOM and August 2007 for CHF. In addition, the permanent housing project has provided 2,300 transitional houses, bringing the total delivered by the JRF to 6,734. Over 95% beneficiary households felt that temporary housing enabled them to resume their normal household activities (e.g. children can study; family members can conduct economic activities at home; all are protected from rain and adverse weather conditions). The satisfactory level for male and female at the project Mid- term Review (MTR) was 87%. At project closing, satisfactory level increased to 92%. In fact, satisfaction level for women in Central Java (Klaten) both for IOM and CHF's transitional housing was 100%. This is significant given women are the primarily users of the shelters after permanent houses are reconstructed. After two years of closing the project, transitional housing remains useful. Based on site visits, several transitional houses constructed by the projects remain to be used for other economic activities or as extension to their permanent houses, mostly as kitchens, storages, or animal shelters. Close to 20% of beneficiaries utilized components/materials of their transitional shelter for their permanent houses. JRF PROGRESS REPORT 2009 | 19 Project Portfolio Performance Permanent Housing and Community Infrastructure (CSRRP) The project aimed to rebuild 15,153 earthquake-resistant houses and community infrastructure, and invest in disaster preparedness and mitigation in 101 villages through the Community Settlement Planning process using a community-driven approach to planning, prioritization, and implementation. Grant Amount US$ 60 million Implementation Period December 2006 to June 2009 (expected for extension until 2010) Partner Agency World Bank Implementing Agency Ministry of Public Works (MPW) Disbursements US$ 53 million The project has completed reconstruction of 15,153 earthquake resistant houses, delivering on its most significant project target. This past year, the project has been focusing on the formulation of Community Settlement Plans (CSPs) and implementation of community infrastructure reconstruction resulted from the plans. The community settlement plans (CSPs) include spatial planning and disaster risk reduction management strategies in 101 villages. Based on the plans, communities apply for block grants according to prioritized needs identified through the CSPs formulation process and funds are disbursed in phases based on progress achieved. This approach supports social accountability, transparency, and effective targeting. Villages were selected through the following criteria: (i) number of houses built under JRF, (ii) disaster prone areas, and (iii) willingness of local government to support the plans. The community infrastructure component of this project was held back as all resources available for the project was directed to the housing reconstruction and to meet limited, immediate infrastructure needs. Currently, work on this is progressing well. As of March 2009, having completed the reconstruction of houses, and achieved 80% of the planned 101 CSPs at a disbursement rate of 63% of its first tranche and 20% for the second tranche, the project has spent 88% of its funds, amounting to US$ 53 million. Project Results (1) Housing Component Of all 15,153 earthquake-resistant houses completed, 99.6% are occupied. The unoccupied houses are still under renovation by beneficiaries themselves at their own expense. All of the building permits (IMB) in Klaten, Central Java had been granted. For the houses in Bantul, DIY they received most of the building permits. Evaluations performed bytwo leading technical universities, Gadjah Mada and Diponegoro in Yogyakarta and Central Java, show that more than 98% of the houses have met seismic standard. More than 95% of the beneficiaries remain to be satisfied with the project. An independent impact evaluation on satisfaction involving over 1,000 samples confirmed that 96.0% men and 94.4% women are either satisfied or very satisfied with the houses. (2) Community Infrastructure Component As of March 2009, 80 of the 101 planned CSPs have been completed; community infrastructure implementations in 63 villages have utilized their first tranche and 20 villages have started their second tranche. As for the remaining villages, they have just completed their plans. Overall, of the 530 community infrastructure sub-projects identified, 70% are completed, 23% are currently at construction stage and 7% have not started. The community infrastructure construction include: constructing roads and pathways, retaining walls, culverts, gabion baskets, small drainage and sewage systems, sanitation and waste management, water resources catchments, evacuation signage, and wells and bridges. 20 | JRF PROGRESS REPORT 2009 Project Portfolio Performance (3) Capacity Building Component This component is to support: (a) the hiring of National Management Consultant (NMC) and District Management Consultant (DMC) to oversee project implementation, construction standards and quality; (b) capacity building for project management at the community level; and (c) community education for emergency preparedness and mitigation of future disasters. Dissemination of completed CSPs to community members at the village level as well as to stakeholders at local and provincial levels is critical. It is important for the Badan Keswadayaan Masyarakat (BKM) ­ group coordinators ­ be equipped with the tools to conduct socialization/dissemination. For this purpose, NMC has developed a framework to be used as guidance. (4) Program Management Overall the quality of project is good and performs at satisfactory level although improvements can be made related to quality, sustainability and prioritization. For instance, in Pangandaran, Ciamis, the DMC is not receiving sufficient management support as normally would have been made available in other DMCs due to the distance between Yogyakarta and Pangandaran. There is also a concern that the project will not be sustained with the community not planning for operation and maintenance budget for constructed infrastructure. To ensure the project achieves its expected outcomes and to continuously improve project quality, sustainability and prioritization, the project team is requesting an extension to June 2010. At the time of the writing of this report, the extension has been formalized. The project has a Complaint Handling Unit that maintains a log of various categories of the queries/complaints, (i.e. negative intervention, indication of corruption/misuse of funds, violation of process, interference, etc.) and almost all queries/complaints were processed. In response to suggestion by the project supervision team, SMS number for lodging complaints or queries is now more widely available through multiple mediums, including posters and all socialization and visibility materials. More on complaint handling is presented in Chapter 3. (5) Cross-Cutting Issues: Environment, Disaster Risk Reduction, Culture and Gender The project continues to comply with using legal timber by beneficiaries. For all community infrastructure construction, villages are required to obtain a "fako" certificate ­ faktur angkutan kayu olahan ­ or processed wood transport form. Currently, very small volume of timber is being used for community infrastructure. In fact, some villages use recycled wood and local wood (albazia) from community plantations. CSP process continues to identify ways to prevent, reduce or mitigate disaster and environment related problems such as floods, erosion, draught, earthquake, tsunami, volcano eruption and so on. One of the activities communities undertake in formulating CSPs is to identify disasters and environmental related problems which have affected the communities. In this way, CSPs can truly be disaster risk sensitive. To ensure sustainability and maximize their usefulness, CSPs should be integrated into budget and planning cycles of the local governments (district/sub- district level) and aligned with guidelines issued by the Disaster Mitigation Agency as well as district plans. Cultural heritage conservation was identified as important to be considered in the context of CSP process. In response, the project is adopting maintenance and restoration of architectural heritage as part of the village reconstruction and disaster risk management strategy. To be eligible for infrastructure grants up to Rp 250million, proposed structures should (i) serve as venues for public functions (for at least 15 years), (ii) be symbolic for the village's development, (iii) consist of special clusters of traditional houses, or (iv) be prominent landmarks for tourists. The NMC will further develop and test the existing Standard Operation Procedures for selection and finalize guidelines for other heritage areas The implementation of the Community Infrastructure Component has attracted participation of women and vulnerable families. Unlike the housing component phase, women are represented or participated much earlier in the process. The participation includes: (i) attending and actively participating in the selection of community group leaders, (ii) being part of the planning group, and (iii) being the leader of the group. JRF PROGRESS REPORT 2009 | 21 Project Portfolio Performance The project has completed its most significant project target - delivering 15,153 earthquake resistant houses Photo: Heri Wahyudi Challenges and Outlook (1) Housing Component Building permits have been awarded in Klaten, Central Java and in Bantul, DIY. There have been delays and will be continuously monitored by facilitators. These delays are primarily caused by beneficiaries failing to file land tax payments on the land where the houses are to be built. Less than 20% of the beneficiaries in Bantul process their tax payments due possibly to lack of available funds. (2) Community Infrastructure Component Several issues/challenges have emerged during the CSP process. · Community group involvement in some areas is still weak due likely to a lack of awareness. There should be a communication strategy in place to include dissemination of community meeting results, socialization of decisions made by the community, etc. · Community group still does not have full understanding of disaster risk management as reflected in the infrastructure related priority projects chosen. For example, walkway to open field is too long in the event of an earthquake. · Communities should also integrate the CSP process with other planning processes already in place to ensure synergy and sustainability of this new process. · There is an inclination to quickly utilize the grants without strategic planning. · Local Government involvement is weak resulting in low adoption of CSPs into the overall government planning and budgeting process. NMC, DMC and facilitators are putting more effort in the planning process by encouraging focus group discussions on special themes, document the analysis, and present conclusion at the village level. The next phase of implementation should be carried out with strong facilitation by the DMC and spot verification by the NMC. The World Bank supervision mission recommended that CSP should be part of the process already in place, i.e. Musyawarah Rencana Pembangunan (Musrenbang), RT/RW ­ village level, Rencana Pembangunan Jangka Menengah Desa (RPJMDes). A consensus was made to have communities in charge of the community plans and local governments provide guidance and integrate the plans into regional plans. A workshop led by Bappeda and selected village heads will be held to further clarify the linkages between various plans at the village level with CSPs. To ensure quality and completion of planned activities, the project is in the process of being extended for another year to December 2011. At the mean time, the executing and partner agency together are preparing justification for additional JRF financing to cover additional 50 villages to supplement the government budget. (3) Government Involvement and Capacity Building The involvement of local governments is a key to the success in developing and implementing CSPs. The government is becoming more pro-active and involved in the implementation of the program. An effective engagement strategy is being developed for government officials to conduct field visits, meet with the planning committee and consult with necessary agencies. 22 | JRF PROGRESS REPORT 2009 Project Portfolio Performance In Pangandaran, West Java, an umbrella policy and guidelines to improve micro zoning or village level spatial planning are also being developed to activate inter-village consultation and foster collaboration amongst the community groups, Badan Keswadayaan Masyarakat (BKM), to form a BKM forum. At all locations, a more consolidated capacity building and technical assistance are being provided to the local government to enable integration of the CSP process into the local government village development planning programs toward mid-term regional planning. (4) Cross-Cutting Issues: Environment and Gender Houses constructed so far have utilized legal timber. Close supervision over the purchase of certified timber remains critical in the next phase of community infrastructure development. It may be difficult for the community to source legal timber for larger scale construction moving forward due to lack of availability. It is important to capture women's voice in community development projects. Evidence shows that women participation is increasing, particularly in the planning and implementation committees as women feel more empowered as members of the community. (5) Recommendations from the Mid-Term Review The recently completed MTR recommended that moving forward, CSRRP should focus on its original mandate of delivering community-based reconstruction and rehabilitation through building capacity and community infrastructure that are anchored in disaster mitigation and risk management. Furthermore, to strengthen the CSP process, the format should be DRR sensitive and involvement of the local governments is a key for sustaining an innovative practice. These recommendations are echoed in the Stocktaking and Gap Analysis. Stories of Beneficiaries Box 2.1 Community Settlement Planning Creates Participatory Buzz The Java Reconstruction Fund's Community- Settlement Planning (CSP) for building disaster-mitigation infrastructures in the post-earthquake Central Java and Yogyakarta provinces has indeed created a participatory buzz among its beneficiaries. Never before has there been any development planning that required so much participation from the village level communities of Rukun Warga (RW), recall CSP beneficiaries interviewed. An RW is a community unit consisting of a number of neighborhoods of families. There are usually over a dozen RWs in one village. An RW community involvement in planning is not typical in government-sponsored development. "Compared to the government's program, this process is unprecedented," says Mohidin, 44, a university graduate who volunteered in the CSP process in Wonolelo village in Bantul regency's Plered sub-district and who has participated in several government-sponsored projects. "(With CSP) we have to organize numerous meetings ourselves, hear so many diverse views, and prepare so many things," says Sagiyo, 39, who volunteered for the CSP program in his village of Ngerangan in Klaten regency's Bayat sub-district. Sagiyo's impression of the CSP process is a typical story shared by many CSP volunteers. They credit the presence and assistance of CSP facilitators and management consultants for making the process possible, especially when it came to sorting out the technicalities of projects at hand. JRF PROGRESS REPORT 2009 | 23 Project Portfolio Performance Through CSP, villagers developed an evacuation site from a soccer field in Wonolelo village, Bantul. The meticulous database development and needs analysis process at the RW level took four months, which was three months longer than initially foreseen, both Mohidin and Sagiyo recall. Together with the deliberation and priorities setting at the village level, and other preparations for the plan implementation, the whole project cycle took almost a year to complete. Despite the lengthy process, however, both Sagiyo and Mohidin admit that the CSP had been worth their time and energy and had helped their communities to be more prepared for future disasters. In Ngerangan, a 560-meter-long and 4.2-meter-wide road has been paved with concrete blocks, smoothing out the access of at least three hamlets of Ngerangan, Purwosari, and Sidorejo to a nearby open field. While in Wonolelo, there is now an open field the size of a soccer field which serves as a mass evacuation site. The field has drainage ditches on four sides neatly reinforced with concrete lining. In this drought-prone area, villagers also developed six rain water reservoirs for irrigation purposes. CSP has indeed been a community-driven process, according to Kristanto Susilo, a senior facilitator and a socialization and training expert at the District Management Consultant (DMC) office in Klaten, Central Java. "We made it very clear during the socialization that the CSP is a stimulant fund that requires (the beneficiaries') active involvement," he says. "The socialization has also deterred thoughts of personal profiteering when this was presented as an `assistance fund'." Besides the now tangible infrastructure components, the process has also resulted in an unprecedented comprehensive compilation of social-economic and physical infrastructure data and maps of the villages, which have been developed by CSP volunteers with the help of facilitators and management consultants prior to designing their village projects. According to Wonolelo village chief Basuki CSP is a valuable reference for future local government development planning. 24 | JRF PROGRESS REPORT 2009 Project Portfolio Performance Stories of Beneficiaries Box 2.2 Community Settlement Planning Shines a light on Women Menik & Triyanti of Ngerangan village, Klaten join forces in community planning The JRF Community Housing and Infrastructure Project's Community-based Settlement Planning (CSP) has shone a new light on the role of women in the development project planning process. By requiring villages to involve women in the planning and preparation activities, the CSP process has made women and men equal partners notes Menik Rahayu, an energetic Posyandu activist who volunteered for the CSP program in Ngerangan village in Klaten regency's Bayat subdistrict, Central Java. "Women in Javanese society are known as man's koncowingking, or the husband's friend at the backyard, so we usually won't be invited to village deliberations," Menik says, adding that under CSP, women and men worked together to develop a comprehensive village mapping, prepare a needs assessment report for discus- sions at the Rukun Warga (RW) ­ community group -- level, and, at the village level, prioritize proposed facilities for CSP funding. Menik says her team of volunteers at the RW level was comprised of three women and two men. One of Menik's woman counterparts, Triyani, says they distributed tasks evenly amongst the group. "We often worked until so late at night measuring paddy fields and roads during the mapping survey, or preparing reports for the deliberation process, that some people in the neighborhood began asking what we women were doing," Triyani recalls. Menik says that her neighbors at one point asked her why she, a single mother of a six-year-old daughter, often arrived home past midnight: "I told them I was volunteering for CSP. They checked with my CSP planning committee head and later apologized and even offered to take me to the night-session CSP meetings." As in Ngerangan, women in Bagolo village had also been involved in the selection of development projects. Yulianti and Ilin Kamilin, representing BMP, gathered women to review the maps and decide on priorities of infrastructure, the process witnessed by the village heads. Although, electricity is scarce in this Ciamis regency's Pangandaran subdistrict in West Java, women decided to push forward for drainage for waste, clean water catchment and household waste management. Meanwhile, in Wonolelo, a village in Bantul regency's Plered subdistrict in Yogyakarta, women grouped in Posyandu, PKK and neighborhood units proposed their own project ideas to complement the proposals generated through the regular CSP planning procedure. Khulil Khasanah, who heads the women's group, says the women of Wonolelo were not commonly involved in village meetings and development activities, but the JRF PROGRESS REPORT 2009 | 25 Project Portfolio Performance Posyandu and PKK activists had taken the initiative to run an assessment of their village's potentials and chal- lenges before the CSP program was introduced there. "So, when the JRF team invited us to present our own findings from the previous assessment we immediately seized the opportunity because we were quite ready," she says. The women's proposed activities, Khulil ad- mits, are more long-term-oriented, focusing on health- and education-related issues, such as sanitation facility improvement and biomass production of cow dung given that most people in the village raise cows in their backyard. In some cases project ideas proposed by women were not directly related to disaster mitigation activities, but do have impact to the overall infrastructure. Although these proposals will have to wait to be realized due to prioritization, the special contribution has been much credited. "With keen eyes for detail, women have brought to the discussion table the needs for development projects other than improvements of roads and bridges that are commonly proposed by men," says Sri Hardono, Ngerangan's village chief. Photo: Nia Sarinastiti Women in Bagolo village, Pangandaran Ciamis participate in the planning session 26 | JRF PROGRESS REPORT 2009 Project Portfolio Performance 2.2 Recovery of Livelihoods The two JRF financed projects to restore livelihoods aim to support livelihood recovery in the affected areas in Yogyakarta and Central Java based on assessment of gaps and needs identification. Livelihoods projects were developed to meet needs identified by the GoI Action Plan developed by Bappenas and more recent assessments conducted by both UNDP and JRF. JRF solicited Project Concept Notes (PCN) to: · Enhance access to finance linked to technical assistance for micro and small enterprises; · Support earthquake affected defaulting lenders to develop effective strategies for viable enterprises; and · Establish a soft loan mechanism to rehabilitate damaged medium-sized business infrastructure and capital equipment. In June 2008, the JRF Steering Committee endorsed GTZ and IOM to implement two projects aim at the restoration of micro, small, medium enterprises by addressing the main barriers to recovery. The projects started its implementation shortly after. Livelihoods projects were designed by both project implementers based on governments and community needs, building on their expertise and experience from projects already on the ground. Table below presents a summary of the projects. The IOM project with five components and the GTZ project with three components, have significant focus on access to finance. This was an area identified where support is most needed to enable SME to return to their full capacity. Both projects have coordinated closely to develop very similar design of this component, where MSE would receive credit through financial intermediaries. Both implementers have technical assistance targeted for improved access to finance based on their expertise and on-going projects ­ GTZ targeting financial intermediaries and IOM targeting mostly MSE's. In addition, IOM is also focusing on MSEs directly by replacing assets or infrastructure, while GTZ also focuses on assisting MSEs in restructuring their loans with Rural Banks (BPR) and medium sized enterprises in restoring capacity and improving competitiveness. Photo: IOM documentation Business development training for women in Bantul JRF PROGRESS REPORT 2009 | 27 Project Portfolio Performance Table 2.3: JRF Livelihoods Recovery Projects At a Glance Access to Finance and Capacity Projects Building of Earthquake Affected Livelihood Recovery for Micro and Small Enterprises Yogyakarta and Central Java Grant Amount US$ 4.48 US$ 10.76 million Implementation Period Dec 2008 ­ May 2010 Feb 2009 ­ May 2010 Partner Agency World Bank World Bank Implementing Agency International Organization for German Agency for Technical Migration (IOM) Assistance (GTZ) Objective Contribute to the GoI's initiatives To assist micro, small and medium to support the recovery of micro enterprises (MSMEs) affected by and small enterprises (MSEs) in the earthquake to revitalize their Yogyakarta and Central Java and businesses and to re-integrate enable them to reach at least their affected low income communities pre-earthquake capacity. back into economic life. Main Activities (1) Assessment for Identification (1) Defaulting loan resolution of Intervention/ Targeting strategies: Assisting eligible SMEs Beneficiaries whose loans with BPRs are in arrears to renegotiate/work-out the (2) Asset Replacement: In kind loans. support provision to highly vulnerable but viable MSEs to (2) Support to Medium Enterprises: restore their infrastructure and Loans will be provided to eligible physical assets that are essential for medium-size enterprises for capital operations. investments towards civil works or replacement of machinery. (3) Enhanced Access to Finance: Provision of micro-credit to viable (3) Enhanced Access to Finance: MSEs, through Permodalan Provision of micro-credit to viable Nasional Madani (PNM) as an apex MSEs, through Permodalan institution. Nasional Madani (PNM) as an apex institution. (4) Expanding Market Access: Supporting MSEs to recover former buyers and attract new ones. (5) Capacity Building: Technical assistance and training for business management skills to MSEs Expected Results Up to 3,000 home industries, 10,000 MSMEs will revitalize their micro-enterprises and small business activities and restore businesses across a variety of their income to pre-earthquake industry sectors will resume level. Low income communities, their business activities to pre- affected by the earthquake will be earthquake level or better with reintegrated back into economic improved business management life. skills, operating capacity, sales, and profit. 28 | JRF PROGRESS REPORT 2009 Project Portfolio Performance Access to Finance and Capacity Building of Earthquake Affected Micro and Small Enterprises Grant Amount US$ 4.48 million Implementation Period December 2008 to May 2010 Partner Agency World Bank Implementing Agency International Organization for Migration The project aims to support the recovery of micro and small enterprises (MSEs) in Yogyakarta and Central Java and enable them to reach their pre-earthquake capacity through enhanced access to finance and targeted technical assistance. IOM's major efforts have focused on engaging government counterparts through consultation meetings and a stakeholder workshop to coordinate interventions and to agree on project locations. With agreement reached between IOM and Permodalan Nasional Madani (PNM), the access to finance component of this project is expected to quickly take off pending the MOU signing with first batch of beneficiaries receiving financing in September 2009. Highlights of Achievements · IOM established a database listing of more than 800 villages and 588 MSEs affected by the earthquake. This database includes data from humanitarian and Government agencies, and contains poverty statistics as well as other related information on livelihood support provided to villages at the pre-intervention stage of the project. The database was the basis for IOM to conduct its initial rapid assessments in the selection of beneficiaries. Baseline data for all 3,000 MSEs selected by the project will also be entered into this database. · Working closely with the provincial and district governments, 18 villages were selected from Central Java and DIY. From villages in DIY, 1.093 micro and small business operators (MSEs), were selected as beneficiaries, of which 56.7% are owned by women. · The MOU between IOM and PNM was agreed upon and cleared by the legal departments of both organizations. It is expected to be signed by June 2009. Subsequently, credit to beneficiaries is expected to be available in September 2009. · 198 MSEs have benefited from the project's "asset replacement" component through the provision of infrastructure and tools, such as essential production equipment for silversmiths. IOM has completed the construction of a community centre in Bantul district that was destroyed by the earthquake. The center supports livelihoods development in the village of Selopamioro by hosting community meetings/trainings/product exhibitions. The community center was officially inaugurated in mid May. · 390 MSEs across various income-generation sectors have been provided with technical skill training in design, production and finishing in cooperation with the Indonesian Chamber of Commerce and Industry (KADIN). · These 390 MSEs have also participated in exchange visits (or cross-visits) organized in cooperation with KADIN. These visits, which are well received by beneficiaries, aim to build better market access by facilitating learning and networking. · 80 MSEs participated in Indonesia ACT (Art, Craft, and Tourism) at the Jogja Expo Center (JEC) and the Festival Kesenian Yogyakarta (FKY) to enhance market access recovery · IOM has established excellent cooperation with Bina Swadaya Foundation for it to provide timely and strategic training. 892 MSEs have completed a seven-day intensive business development training program through this cooperation. JRF PROGRESS REPORT 2009 | 29 Figure 2.1: Livelihood Village Beneficiary Mapping , - -. n · - -. -- - _. - - - .- .. '" · ",'U " -- ,- , .", "., · .. II.' --- --- . ,. ·· , '", ".. . n .. >I.' ,. n· "... , - .. -, 0- ·· " · · ., n "' . - '- Boyolal ....u . "I ... - · ........ - -- - -- ...,- l egend Bu,ln. . . " . . ,,,ad (IOM...IRF Pfla · · I) Admlnlstra!lv. Bo"""-ri" S ...... Gunung E'l """' .....,.- 0-- c-_ E u-._ 01 _ _ onfI 0--- D ~-- -- -- -- DI,trlc", p", Selected VII .. !!., 0-_ D Gun"'l!KWI 0 - -- - - '·'111',*,,,1 . KtolDi_ H..... I~ I : o;,.vQ No.,.,. ....,. .... ., _ ._ _ ___ _ _ '0 '_ ........ Project Portfolio Performance · 585 MSE beneficiaries have received assistance in developing their individual business plans. · IOM held a workshop in Gunung Kidul district at the venue of the Regional Planning and Development Board (BAPPEDA) to discuss value chain analysis of silver craft production, coordination mechanisms and exit strategies. To date, IOM has carried out 33 coordination meetings with local governments, in the target districts and obtained clearance on selection of geographic locations. Photo: IOM documentation Technical skills training for Silversmiths help improve the marketability of Photo: IOM documentation their product 32 | JRF PROGRESS REPORT 2009 Project Portfolio Performance Cross-Cutting Issues: Environment, Disaster Risk Reduction and Gender Environmental Impact Assessment and Protection As part of Component I of the project, an environmental impact assessment (EIA) was completed in all recipient villages in DIY province by IOM's partner CV. Triguna. The assessment cleared selected MSE activities vis-à-vis the government's black-list of environmentally harmful enterprise activities. It was confirmed that MSEs create very limited impact on the environment. Disaster Risk Reduction IOM has incorporated Disaster Risk Reduction (DRR) elements in relevant training courses, such as hazard assessment and preparedness into standard business processes, and risk analysis into business continuity planning . In cooperation with Prosumen Mandiri, a module and curriculum adapted and applicable to the local culture and business context was designed for use in all IOM's business training courses. IOM has appointed a Disaster Risk Reduction Specialist to identify areas of the Project, such as the Business Development Training, in which climate risk management and disaster risk reduction can be mainstreamed. This will be consistent with the increasing international impetus to mainstream DRR into development policy and planning, thereby reducing the disproportional impact of climate change and disaster risk on developing countries. This approach is also consistent with the priorities of the World Banks Global Facility on DRR, DFID policy on DRR and the Paris and Rome Declarations, among others. Ensuring Gender Balance IOM is implementing initiatives that mainstream gender sensitivity throughout its project activities. Gender sensitive recruitment of project staff has received particular attention and led to an almost 1:1 gender ratio (i.e. 49 per cent of staff are women). Notably, among field staff with key role in daily interfacing with communities, 58% are women. In addition, of the 1,059 selected MSEs, 59% are owned or represented by women as direct beneficiaries of the Project. See Box below for details. In order to continuously empower women economically through the project while challenging common gender- based stereotypes, IOM included provisions in the agreement with the building contractor requiring a minimum of 20 percent women among the construction laborers, and monitored the implementation of this provision. The same percentage was required for laborers to be sourced from the local community. The training program pays particular attention to the special needs of women participants and illiterate groups. To this end, 50 percent of the trainers are women, which are deployed to classes with a high share of female participants. JRF PROGRESS REPORT 2009 | 33 Project Portfolio Performance Stories of Beneficiaries Box 2.3 Ensuring gender equality in IOM projects Through its community engagement processes, IOM ensures that women are offered the opportunity to participate as active contributors in setting priorities under the project. IOM engages women's groups such as Pemberdayaan dan Kesejahteraan Keluarga (PKK) or Family Empowerment and Welfare to be present in community planning meetings and leverages an existing income generating activity of this group for the provision of meals for project eve To facilitate easy access to project assistance for women, whose mobility is limited due to household and family responsibilities, training courses are held in the proximity of their businesses. Furthermore, IOM has developed a business module and curriculum specific for the project that empowers women as entrepreneurs and business leaders; thereby challenging traditional stereotypes of women, particularly in the productive sector. IOM monitors and records the level of women's attendance in project-related community meetings. To date, women have represented 29% of participants (lower than the 59 of the selected beneficiaries that are women). This is an acceptable level of women's participation; IOM will continue its efforts to increase women's participation Photo: IOM documentation An IOM field assistant checks the ID card of a selected beneficiary. More than half of IOM's community engagement staff are women 34 | JRF PROGRESS REPORT 2009 Project Portfolio Performance Livelihood Recovery for Yogyakarta and Central Java Grant Amount US$ 10.76 million Implementation Period February 2009 to May 2010 Partner Agency World Bank Implementing Agency German Agency for Technical Assistance Photo: Heri Wahyudi This project aims to assist micro, small and medium enterprises (MSMEs) affected by the earthquake to revitalize their businesses and to re-integrate affected low income communities back into economic life. The project particularly focuses on remote communities which have received little assistance so far. Current Status The project has conducted the following activities: · GTZ shared IOM's existing project locations, allowing project data to be consolidated in the IOM's project database. The two implementing agencies are coordinating closely, in consultation with provincial and district governments on beneficiary selection and assessments. · Finalized operational setup to provide financial assistance to MSEs via PNM and Financial Intermediaries (BPRs · and Cooperatives) in the region. GTZ is in the process of setting up the project management team to work with local partners. Challenges and Outlook To monitor progress closely on the ground and to engage with local governments, the World Bank has recruited a Project Officer based in Yogyakarta to coordinate closely with the implementing agencies and the government and actively engage in monitoring and evaluation of the projects. The projects are well poised to reach beneficiaries and disburse to an initial tranche of beneficiaries in September 2009. However, with delays in setting up the operations mechanism, reaching 3,000 MSEs and 10,000 MSMEs within the life of the two projects will be challenging. The project may have to be extended to fully disburse. The JRF extension to December 2011 is now planned and underway which will allow time for these projects to achieve their intended targets. JRF PROGRESS REPORT 2009 | 35 Communication CHAPTER THREE Communication Reaching Out to the Public and Enhancing Visibility Photo: Nia Sarinastiti & IOM documentation 36 | JRF PROGRESS REPORT 2009 Communication Visits by JRF to different sites provided a platform to reach out to beneficiaries Photo: Nia Sarinastiti The Java Reconstruction Fund disseminates information regarding its portfolio, projects and events to promote visibility, and enhance transparency and engagement with stakeholders. These stakeholders include beneficiaries, donors, other partner organizations, the media and the public. The main communications strategy of the JRF is to focus on providing information to the various stakeholders through regular reporting, outreach to beneficiaries and community groups, feedback handling, media relations, and visibility programs. In general, multiple forms of communication activities are adopted to boost visibility. Public Outreach and Managing Feedback The Java Reconstruction Fund continues to promote transparency through beneficiaries and community groups outreach by managing feedback, conducting field visits and holding dialogues with stakeholders. Outreach and Feedback from Beneficiaries Visits to different sites provided a platform to reach out to beneficiaries. During the last year, the JRF Secretariat conducted visits to: (i) Wonolelo, DIY on August 6, 2008 with the DFID-DRR specialists, (ii) August 28-29, 2008 to Pangandaran, Ciamis, West Java (i) Wonolelo and Baturejo, DIY on December 13, 2008 together with the Managing Director of the World Bank, Juan Jose Daboub, (ii) Bantul kota, DIY on January 22 for a discussion with the Head of Bantul Regency/Bupati, Head of Bappeda and his team, and visited a market, and (iii) Selopamioro, Wonokromo in DIY on March 13. Generally, the objective of the visits was to observe project results/outputs and, when possible, to conduct discussions with stakeholders and beneficiaries. Managing Feedback The projects manage their own feedback mechanism and monitored by the World Bank as the Partner Agency. The Secretariat Communication and Coordination Officer reviews the results for reporting and forwards any related queries to the relevant projects. The Complaints and Queries Handling System is an important channel for receiving feedback from the public at large. The queries are mostly questions and suggestions pertaining to negative intervention , ethical issues, criticisms, and indications of alleged corruption and misuse of funds. Essentially all complaints and queries received have been dealt with and are considered resolved. Over the past year, with the completion of the housing component of the community housing and infrastructure project, the complaints and queries registered have shifted from housing issues to those related to community infrastructure. The locations from where queries were received have doubled from four locations in the preceding reporting period (Bantul, Klaten, Ciamis and Sleman) to a total of eight locations on March 31, 2009. The new locations that complaints have been received from are Gunung Kidul, Kulonprogo, the city of Yogyakarta (capital of DIY), and Magelang of Central Java. These are all the locations where community infrastructure was initiated during this past year. JRF PROGRESS REPORT 2009 | 37 Communication Allegations of corruption and misuse of funds are dealt with at community level through clarification or community meetings. Since 2006, 24 cases of alleged corruption or misuse of funds were received and addressed in this manner. One of the alleged cases of corruption involving Rp130million (approximately US$ 12,000) in Klaten, which was submitted in January 2007. The money was eventually returned by community members at the end of 2008 despite the fact that the culprit disappeared with the funds. Feedback about the livelihoods recovery project implemented by IOM has been mostly positive. General enquiries included questions on when program will start, how the selection was held, and how to apply for technical assistance or loans. There was one complaint that came from a disappointed farmer from the village of Semoyo who did not receive any benefits although he participated in the survey. After investigation by IOM, the farmer was pleased to find out that he was actually part of a farmer group grantee. Figure 3.1: IOM Complaints Handling and Anti-Corruption Posters IOM's posters explain how communities can report grievances (left). IOM reminds communities that assistance is provided free of charge and that payments or gifts in exchange for services are not accepted and can be reported (right). 38 | JRF PROGRESS REPORT 2009 Communication Box 3.1 MIS Builds Transparency, Accountability The Java Reconstruction Fund's Community Housing and Infrastructure Project Management Information System (MIS) has proved to be an invaluable and diverse information tool. For project facilitators and management consultants working with beneficiaries to rebuild homes and construct settlement infrastructure in the post-earthquake Special region of Yogyakarta, Central Java and West Java, the MIS serves as a performance quality control tool in aggregating information of work results or performance. "MIS has indeed built transparency and accountability into the JRF programs," says Doly Pranoto, a MIS expert at the National Management Consultant (NMC) office in Yogyakarta, who helped build the system. JRF beneficiaries are able to use the tool to effectively voice grievances and seek clarification on various matters. "Beneficiaries can provide input for and critiques of the programs through facilitators, or directly through district or national management consultants, by emails or by SMS texts," says Alexius Sunaryo, a monitoring and evaluation & complaint resolution expert at the District Management Consultant (DMC) office in Klaten, Central Java. "We've made the SMS numbers available since 2007 when the JRF housing reconstruction program began," says Alexius. "Sometimes grievances were settled at the level of facilitators, but sometimes at the DMC or even NMC levels." Dawud Susilo, a colleague of Alexius at the monitoring and evaluation unit, notes that the beneficiaries used the MIS tools more often during the housing reconstruction program than during the Community Settlement Planning (CSP). Queries were mostly centered on beneficiary eligibility for the fund. "This was perhaps because rebuilding houses was more of a personal matter than CSP which relies only on concerned and willing volunteers," explains Dawud. Unlike the housing project, the CSP deals rather with development of community-owned disaster-mitigation infrastructures. To make the MIS tools work, the JRF's MIS team has developed a project reporting standard that relevant stakeholders - especially facilitators and management consultants ­ must follow through, mostly on a weekly basis, by completing forms that are later typed up, verified and uploaded to the web-based system which is hosted at http://www.rekompakjrf.org. Other than information relating to the status of projects and data of beneficiaries, the website also contains the contact details of facilitators, management consultants, and relevant staff at the World Bank, as well as lists of lodged inquiries and complaints, and contract documents that the facilitators/management consultants have with the JRF. JRF PROGRESS REPORT 2009 | 39 Communication "To allow us to learn and improve our project management, all information is presented as is, not more, not less, regardless of whether the information makes you happy or not," Doly explained. The MIS website is updated twice a month after the verification of reports from facilitators/consultants. To ensure that intended readers are aware of current information, Doly says he also sends updates by email every Monday to key JRF stakeholders such as the Government of Indonesia and the World Bank. Likewise, to ensure that beneficiaries without internet capabilities also have access to the information, facilitators regularly print out the MIS web information and post copies on announcement boards in village halls, security posts, community health centers, and other public gathering places. MIS, in a nutshell, keeps many stakeholders updated with the latest information relating to JRF projects and grievances voiced by beneficiaries, says Doly. By making use of multiple posting platforms, regularly updated information reaches beneficiaries at all levels, irrespective of their capability to access the internet. Photo: Chris Tumelap The Programmer of JRF - CSRRP view a JRF's MIS website. The website serves as the portal through which the public can obtain information regarding the process and activities of JRF programs. 40 | JRF PROGRESS REPORT 2009 Communication Leveraging Communication Tools The JRF Secretariat leverages the World Bank's -- as trustee -- web page to disseminate stories. The JRF profile can be accessed through the World Bank reconstruction in Indonesia site (please visit: http://web. worldbank.org/indonesia). In addition, feature stores about the JRF housing construction can be found in the World Bank blog page (please visit: http://eapblog.worldbank.org). The JRF website has recorded a marked increase in access and registered users. Over the year, the JRF website, www.javareconstructionfund.org, registered 4,664, a 40% increase over the 2,773 viewers. On average, 415 viewers were recorded each month, with number of viewers peaking at 498 in November 2008. The website recorded 41,047 hits with 15,439 pages viewed during the six-month period. In regards to media relations, a major collaboration was working with the Jakarta Post to develop stories related to the rehabilitation and reconstruction in Bantul, DIY and Klaten, Central Java. Three stories generated from the visit: · Quake Victims Get Help to Rebuild Homes · Preventing Graft, Misuse of Aid for Quake Victims · Instance of Corruption Widespread in Java Reconstruction Program Increasing Visibility Coverage of the Java Reconstruction Fund Projects are consciously contributing to greater JRF visibility. JRF stickers and certifications of earthquake resistant house issued by Gadjah Mada University and Diponegoro University have been posted on all houses funded by JRF. In addition, field vests were also distributed to new facilitators for the next phase of the community infrastructure development sub-projects under CCSRP, especially those in Pangandaran, West Java. The project has continued to place the JRF logo on all project reconstruction. The IOM continues to consult with the JRF Secretariat on using JRF branding, which has now been included in all fact sheets, training modules, posters and project signage. Figure 3.2: Coverage from the Jakarta Post Finance CHAPTER FOUR Finance Photo: IOM documentation IOM's beneficiaries learn organic vegetable production in Sumberharjo village 42 | JRF PROGRESS REPORT 2009 Finance 82% of total contributions have been allocated and 72% of all allocated funds have been disbursed Photo: Nia Sarinastiti Pledges As of March 31, 2009, seven donors pledged to the rehabilitation and reconstruction of earthquake and tsunami affected Special Region of Yogyakarta, Central Java, and West Java. Asian Development Bank (ADB) added US$ 10 million to the previous US$ 84.06 million pledged, making the total pool at US$ 94.06. Table 4.1 shows the breakdown of funding commitments made by donors, along with the cash received by the Java Reconstruction Fund. Table 4.1: Sources of Pledges and Cash Total Pledges Cash Received % Total US$ Million US$ Million Pledges European Commission 51.17 51.17 54% Government of Netherlands 12.00 12.00 13% Government of United Kingdom 10.77 10.77 11% Asian Development Bank 10.00 10.00 11% Government of Canada 6.53 6.53 7% Government of Finland 1.99 1.99 2% Government of Denmark 1.60 1.60 2% Total Contributions 94.06 94.06 100% Allocations The Java Reconstruction Fund has allocated US$ 77.55 million to three projects: the Transitional Housing, the Permanent Housing & Community Infrastructure and Recovery of Livelihoods (see Figure 4.1). The total allocations represent 82 percent of the total contribution. After including interest income and deducting expected administration and supervision costs, about US$ 18.80 million remains unallocated. The remaining funds will be allocated based on the recommendations from the Stocktaking and Gap Analysis Exercise and Midterm Review of the JRF. JRF PROGRESS REPORT 2009 | 43 Photo: IOM documentati Photo: Nia Sarinastiti IOM's bookeeping training and the housing project bookeeping exercise increase the transparency within the community 44 | JRF PROGRESS REPORT 2009 Finance Figure 4.1: JRF Expected Allocation by Sectors Administration Costs 2% Livelihood 19% Source: Java Reconstruction Fund Housing and Community Infrastructure 78% Disbursements The Java Reconstruction Fund disbursement to projects as of March 31, 2009 is US$ 56.10 million. A large part of the disbursement has been to the Permanent Housing and Community Infrastructure Project, which represents 64 percent of the Java Reconstruction Fund project, channeled through the government budget. In total, 72 percent of all allocated funds have been disbursed. Table 4.2: Disbursements to Projects as of March 31, 2009 Allocation Disbursement US$ Million US$ Million Transitional Housing Project 2.32 2.32 Permanent Housing and Community Infrastructure Project 60.00 53.32 Livelihood Projects 15.24 0.47 Total 77.55 56.10 Outlook The implementation of the housing reconstruction has been completed. Thus, going forward, the disbursement will mainly be for the community infrastructure reconstruction and the livelihoods projects now under full implementation. The livelihoods and housing project will need more time to be fully implemented. Hence, the JRF may be extended to December 2011. With additional funds from ADB, all remaining funds are expected to be allocated by the third quarter of 2009. JRF PROGRESS REPORT 2009 | 45 Looking Ahead CHAPTER FIVE Looking Ahead Photo: Heri Wahyudi 46 | JRF PROGRESS REPORT 2009 Looking Ahead JRF projects need to continue to build on the existing strong coordination with local governments Photo: IOM documentation At its mid-term, the Java Reconstruction Fund is at a junction to draw lessons and harness these towards effectively programming of remaining funds and continued project implementation to achieve its objectives in the remaining half of the JRF years. Key areas to be considered in the coming months are as follows. Coordinating with Local Government The JRF projects need to continue to build on the existing, strong coordination with local governments of both Special Region of Yogyakarta and the province of Central Java. Involvement of and coordination with local governments is essential to understanding needs and managing expectations. The Secretariat has now placed a Officer based in Yogyakarta to work closely with the different levels of government and project implementers to support coordination. Aligning Community Driven Planning with Government Programs As the housing reconstruction efforts have ended, activities have shifted in the Community Settlement Planning (CSP) component of the JRF Housing and Community Infrastructure project. There is still a lack of understanding that CSPs are geared towards fulfilling overall community needs. There is a need to socialize and take an integrated approach to community planning. To sustain these efforts, CSPs should be integrated with other government efforts. Monitoring Implementation and Changing Needs of Livelihoods Recovery. Livelihoods recovery is one of the gaps identified by the government and in the Stocktaking and Gap Analysis and significant needs remain thus, JRF's livelihoods projects are well positioned to support disaster affected MSEs. However the needs are also changing on the ground, with impacts of earthquake further exacerbated by the global financial crisis. Therefore, there is continued need to monitor and assess progress closely, so that relevant measures can respond to the changing needs of those businesses and communities affected by the disasters. The JRF is expected to be extended to December 2011 to meet remaining reconstruction needs, complete implementation of current projects on livelihoods recovery, and ensure disaster risk reduction is mainstreamed into community planning. Looking ahead, priority will be on programming the remaining JRF funds to complete implementation. Livelihoods projects are under full implementation to support 13,000 MSEs and the housing project to support communities in settlement planning. It may be challenging to reach their intended targets within the current timeframe, Therefore, an extension of the JRF has been supported by both government and contributing donors. The extension of the JRF is in process and is expected in the next quarter of the JRF. The JRF is working with Bappenas and Bappeda following the end of the mandate of the National Coordinating Team for Rehabilitation and Reconstruction Team and the National Technical Team (TTN).Going forward, the role and membership of both Steering and Technical Committee needs to be formalized. JRF PROGRESS REPORT 2009 | 47