REPUBLIC OF INDONESIA

Transcription

1 REPUBLIC OF INDONESIA FINANCIAL SECTOR TECHNICAL ASSISTANCE PROGRAMS (Approved, in process or planned: Completed lending / TA separately featured) Banking 1) Continue restructuring and improving health of the banking sector through divestment of IBRA banks and strengthening governance of state banks (White Paper); 2) Reviving core banks to sustain core banking services and to facilitate lending for viable enterprises; 3) Establish a sound financial safety net (White Paper); 4) Laying the foundations for longer-term financial sector development and infrastructure. Recipient: IBRA Provide policy advice and other short-term technical assistance on as needed basis (INP) on, inter alia: 1. IBRA s exit strategy and migration of remaining, assets; 2. IBRA various asset disposal and resolutions. Recipient; MoF, MoSOE and BI Provide policy advice and other short-term technical assistance on as needed basis (INP) on, inter alia: 1. Strengthen oversight and governance at state-owned banks through adding to MoSOE staffing, recruiting new, independent bank Board of Commissioner members, putting in place new reporting requirements, annual performance contracts and external audit corrective action plans (INP) 2. Continue, monitoring on state banks financial performance 3. Enhance human resources in the banking industry (P) 4. BI s banking landscape study and its implementation (P) Loan No INO: Financial Governance and Social Security Reform (FGSSR) Program Loan I ($250 million) Executing Agency : Coordinating Ministry for Economic Affairs (CMEA) Support a broad framework for the overall strengthening of the financial sector (INP) Establishment of a consolidated regulatory and supervisory authority (INP) Development of sound financial institutions and anti-money laundering regime (INP) improve social protection and governance, supervision and regulation of mandatory social insurance programs.(inp) Financial Services Supervisory Institution Technical Assistance (FSSI TA) ($1.7 million) Establishment of a Financial Services Auhtority (FSA TA) ($1.5 million) (INP) Recipient : MOF Assistance in the transition team the existing multi-agency regulatory structure to a single Recipient: GOI Policy and technical advice on resolving the banking crisis and related issues provided through ongoing series of visits by IMF staff and experts addressing topics including: Banking Sector Restructuring Financial condition of the banking sector Resolution of state banks Mandiri restructuring Resolution of private IBRA banks Institutional and Legal Framework BI: Accounting and auditing recipient: BI Banking Supervision Provision of resident advisors to assist with master plan implementation Assessment of Basle core principles and assistance to bring supervision up to international standards Provision of advisor to assist in implementation of AML regulations (INP) Financial Stability Assistance on formation of Financial Stability Unit (NIP) Assistance on enhanced lender of last resort function (INP) AusAID - /MSOE A three and half year program of assistance to establish and strengthen the Monitoring and Governance Unit within Ministry of Finance to promote the recovery and sale of the state-owned banks. Three consultants to be reduced to two in 2004, Approved to August 2004 Recipient: MOJHR/BI/PPATK A series of TA in Anti-Money Laundering (AML) initiatives, including: 2 years assistance to PPATK from Austrac (Australian FIU) to develop initial procedures, to improve operational skills of staff, and assessment of future needs related to transaction reporting and solutions USAID - recipient: IBRA Provision of advisors to support bank restructuring, finance and accounting, information systems, loan recovery and asset disposal Providing TA on the drafting of a deposit insurance law (on-going) and may provide TA on the establishment of an agency. (INP) In additional, long and short term advisors and training on deposit insurance is being provided to the LPS TECHNICAL ASSISTANCE 1

2 5. Infrastructure such as credit bureau (P). regulatory structure to a single integrated agency structure (INP) Development of an Anti -Money Laundering Regime Technical Assistance ($1.5 million) (INP) recipient: Ministry of Justice and Human Rights JICA recipient: BI Assistance to research on monetary policy through the advice of experts and training in Japan. Assistance on the improvement of External Debt Reporting System (mainly for private sector reporting)and Foreign Exchange Reporting System through the advice of experts. (INP) Assistance on Bank Export Indonesia s policy and activities since its establishment, through the advice of longterm experts. (INP) Assistance on BI s role in trade promotion (ex. consultation to local exporters) through the advice of longterm experts. (INP) recipient: PPATK Holding seminars in a few cities in Indonesia for bank employees based on established comprehensive manual(p) Assistance on Anti-Money Laundering Measures through the advice of experts.(a) Housing Finance 1) Designing a new housing sector policy and a low income housing program. Non-Bank Financial Institutions 1) Rationalizing the supervision and regulation of non-bank financial institutions; 2) Increasing disclosure and transparency of financial information. Recipient (MoF) Propose to hire consultants under ASEM Trust Funds to work on: 1) Improve data base of multy finance companies (P) 2) Assessment and improvement of regulation and supervision (P) 3) Strengthen supervisory capacity through trainings and seminar (P) Proposed loan for Shelter Sector Project in year 2003 (P) Recipient: MSRI as executing agency and Bank BTN and PNM for $ 17 million housing credit. Proposed Loan of Social Security Unification and Development (FGSSR phase II). Planned for $80 million in (P) FSSI TA (see above) FSA TA (see above) Financial Governance and Social Security Reform (FGSSR) TECHNICAL ASSISTANCE 2

3 Technical Assistance Grant ($1.0 million) (INP) Executing Agency: CMEA TA to support FGSSR I program loan Support insurance sector restructuring Development of a national social security system. Assistance will include support for preparation of legislation and regulations for a new law for national social security system; examination of options for restructuring existing public social insurance schemes; development of a unified identification system for national social security ; public education campaigns and training for officials. Development of Anti Money Laundering Regime (see above) Stock Market 1) Restructuring Securities companies to strengthen their financial condition and operational ability (White Paper); 2) Restructure Stock Exchanges to anticipate market globalization and liberalization (White Paper) 3) Strengthen regulation and supervision of mutual funds industry (White Paper) 4) Implementation of Good Corporate Governance (White Paper); 5) Development of new products (White Paper); 6) Reorganization of Bapepam to strengthen regulation, supervision and legal Recipient : Bapepam FSSI TA (see above) Propose to hire consultants under ASEM Trust Fund to FSA TA (see above) work on inter alia: 1. Stock Exchange demutualisation (INP) 2. Assessment and improvement of existing regulation and supervision of capital market (P) 3. Strengthen supervisory capacity through trainings and seminar (P). FGR:SDP and Capacity Building for Financial Governance TA loan (see above) components. recipient: Education and Training Agency (BPLK), MOF Enhancement of staff qualifications in the new financial instruments such as derivatives Recipient : BAPEPAM TA project funded by FIRST to (a) assist BAPEPAM to perform a self-assessment against IOSCO principles and (b) improve the regulation of mutual funds. USAID Law and Finance Institutional Partnership Initiative recipient: JSE, University of Indonesia Law Faculty Drafting of implementing regulations Evaluation of securities issuers' corporate governance (paper) JICA recipient: BAPEPAM Experts from Tokyo Stock Exchange have assisted on the promotion of Stock Exchange s activities, such as, introduction and/or improvement of investigation on transaction, margin trading, market development, system of stock exchange, option transaction, bond transaction, listing, and cooperate governance TECHNICAL ASSISTANCE 3

4 enforcement (White Paper); 7) Improving the clearing and settlement and depository systems for traded securities; A long-term expert advises on capital markets development measures (INP) recipient MOF (Agency for Fiscal Analysis) An expert advises on fiscal policy management (INP) recipient MOF (Debt Management Center) A long-term expert advises on the debt management (INP) Treasury & Fixed Income Markets / Sub-sovereign Finance (Bond Market) 1) Improving the legal framework for issuance of asset-backed securities. FSSI TA (see above) FSA TA (see above) AusAID - 1) A 3-year Debt Management Project to establish and develop a functioning and credible Debt Management Office The project will assist PMON to develop the capacity to issue government securities, to manage the risks around public debt, and to undertake total government debt monitoring and analysis (commenced November 2001) 2) A proposal from UNCTAD for fu rther assistance with DMFAS is under consideration (P) 3) Review of options for strengthening the proposed DG Treasury and the steps necessary to migrate to the preferred structure (INP) USAID Preparation of Foreign Borrowing Policy Enhancement to Expenditure Information Systems JICA (Agency for Fiscal Analysis) An expert advises on fiscal policy management. (INP) TECHNICAL ASSISTANCE 4

5 Insurance and Annuities 1) Raising the minimum capital level of insurance companies, and thereby encouraging restructuring and consolidation of the industry ( White Paper); 2) Introducing risk-based solvency standards for insurance companies; 3) Enhancing insurance policyholders rights; 4) Improving corporate governance in insurance companies; 5) Strengthening the institutional and regulatory capacity for insurance supervision (White Paper). Pension System 1) Improving and strengthening institutional and regulatory capacity for pension fund supervision ; (White Paper) 2) Improving transparency and good corporate governance in the pension fund industry (White Paper) 3) Developing an operationally viable, fiscally sustainable and well-integrated private/public pension system; 4) Supporting the development of broader and deeper social security coverage, within the constraints and limitations 5) Expanding investment criteria and development of investment instruments to Recipient: MOF Provide insurance expert to address resolution mechanism for insolvent insurers (INP) Propose to hire consultants under ASEM Trust Funds to work on inter alia: 1. Analysis of the solvency of the industry (P). 2. IAIS self-assessment (P) 3. Establishment of policy holders protection scheme (P) 4. Training and seminar (P). Recipient: MOF 5) Propose to hire consultants under ASEM Trust Funds to work inter alia on: 1) Assessment and improvement of current pension system (P) 2) Formulate risk based supervision standards and procedures (P) 3) Strengthen supervisory capacity through training and seminar(p) FSSI TA (see above) FSA TA (see above) FGSSR TA (see above) Capacity Building for Financial Governance TA loan-component- Insurance ($1 million) (P) 4) Provide in-depth financial and operational analyses and options for restructuring major life insurance firm. FSSI TA (see above) FSA TA (see above) FGSSR TA (see above) Capacity Building for Financial Governance TA Loancomponent- Jamsostek Project ($1.5 million) (P) 6) Independent evaluation of Jamsostek to determine its efficiency and economic performance (Debt Management Center) A long-term expert who advises on the debt management is planned to come in April, (P) TECHNICAL ASSISTANCE 5

6 investment instruments to maximize potential returns for pension and insurance funds (White Paper) 6) Introducing competition in this sector by restructuring JAMSOSTEK s monopoly position. 7) Improve human resources skills in the pension funds industry through training and certification (White Paper) Mutual Funds Venture Capital Funds Leasing Microcredit Small and Medium Enterprises 1) Improve access of the poor to financial services. 2) Better integrate micro credit institutions and rural banks with commercial banks (White Paper) recipient: Sustainable Micro-Finance Project currently under development IFC Facility for small and medium enterprises: PENSA Program for Eastern Indonesian SME Assistance Australia, The Netherlands, Switzerland, IFC and the Bank contributed to the $25 million grant program administered by IFC. PENSA is headquartered in Denpasar and opening three more branches in Surabaya, Makassar and Balikpapan Three areas of focus : Improving access to capital working with local financial institutions to upgrade viable SME lending skills and products; assisting SMEs in improving their ability to present qualified lending proposals to banks. Improving business performance Rural Income Generation Project Loan ($78.6 million loan and $20.4 microcredit component) Receipients: MoA as executing agency and Bank Mandiri and BNI as apex banks (P) Loan No INO: Rural Income Generation Project Loan ($78.6 million loan and $20.4 microcredit component) recipient: BRI (INP) Loan No INO : Community Empowerment for Rural Development Project, CERDP ($ million loan and $15 million micro credit component) and Technical Assistance for Financial Management System ($1.1 million) recipient: Directorate General of Rural Community Empowerment Develop, test and set up the AUSAID A A$1.3 million program focusing on institutional strengthening of Microfinance Institutions in Indonesia to assist them to scale up their operations and reach more of the target poor. The program is being conducted in cooperation with CASHPOR incorporated (completed) and Opportunity International (schedule for completion 31/12/2003) who are working with local partners in Jakarta, East Java, North Sumatera and NTT. SME Access to Finance: 4) Contribute to a multi-donors project managed by IFC (International Finance Corporation). The five year project, PENSA (Program for Eastern Indonesia SME Assistance), aims to strengthen SMEs in eastern Indonesia. One of three core focus issues is improving SMEs access to capital (INP) USAID recipient: NGO s, Universities, PT TECHNICAL ASSISTANCE 6

7 working with SMEs, NGO partners, other service providers, and large firms to improve the skills and knowledge base of entrepreneurs and managers; and to develop supply chain small firm linkage programs. Improving the business environment working with local governments, business associations, and other stakeholders to improve transparency and the regulatory framework. structure and administrative procedures for disbursing, monitoring and accounting for small loans provided by loan CERDP to 750 community-based savings and loan organizations (CBSLOs) Train district and village officials on the new financial management system for transparent accounting of project funds Develop and test a computerized MIS for monitoring progress of project implementation in the day-to-day management of project activities and financial monitoring system for use by CERDP On SME Finance: Loan No INO: Industrial Competitiveness and Small and Medium Enterprise (SME) Development Program Loan ($200 million) and associated Technical Assistance Grants SME Development ($2 million) and Promoting Deregulation and Competition ($1.5 million) recipient: Bappenas, BKPM, Ministry of Cooperative and SMEs 3) Assessment of the effectiveness of existing SME credit schemes (INP) Small and Medium Enterprise (SME) Export Development Project Loan ($100 million) and associated Technical Assistance Grant ($0.5 million) recipient: Bank Ekspor Indonesia (BEI) Investment finance to exporting SMEs (INP) Strengthening Business Development Services (BDS) for SMEs Technical Ukabima TA to small credit and BPRs Assistance to professional associations GTZ recipients: Bank Indonesia, Ministry of Finance and Bali Provincial Government Micro finance Program consisting of 4 components: Policy Advice (MoF): Micro finance Policy, MFI Law, Capacity Building for MoF BPR/LPD Policy, Regulation and Supervision (BI, Bali Prov. Govt): Regulation and supervision of BPR and LPD (non-bank MFI) Capacity Building (Perbarindo/LPD Association): Certification system for MFI managers, strengthening BPR and LPD associations MFI Development in NTB/NTT: studies to develop and implement MFI strategy JBIC In October 2002, JBIC conducted Micro finance preliminary sector study, together with an external expert from Japanese NGO, regarding fund channeling mechanism in Micro finance sector in Indonesia as a whole, collecting updated information on other Donors activities, and, the examination of APEX Mechanism. JBIC will engage with Japanese/Indonesian NGOs (JANIC and Bina Swadaya) to undertake a study for viable Micro finance service delivery model in Eastern Indonesia (Sulawesi, Kalimantan, East Nusa Tenggara). (Study term is from June 2003 to January 2004) The study is now on drafting a final report. Additionally, the Study team is TECHNICAL ASSISTANCE 7

8 Services (BDS) for SMEs Technical Assistance ($1.5 million) recipient: BAPPENAS, MOIT, BI, MENEKOP Produce a study for setting-p a credit information bureau : Component under implementation by BI (INP) Provincial SME Development PPTA($0.8 million) recipient: MoIT DG of Small Mediun Industrial Technology The TA will (i) look at the deepening regulatory reviews at the provincial level; (ii) strengthen link between BDS and credit in the provinces; (iii) financing through provincial financial institutions.(p) Proposed Loan for Provincial SME Development in year 2004 ($100 million) planning to hold feedback workshops in December in Jakarta, to explain fact finding from field surveys in Makassar, Pontianak and Kupang. The contents of the report would be as follows: 1. Inventory of MF services Based on the findings in the field, as well as outcomes of the coming feedback workshop, the Study will propose sustainable and effective Micro finance system in Eastern part of Indonesia as taking account of following points in the study region. 2. Needs assessment, financial service accessibility in the study survey region. 3. Viable MF service delivery model and role of NGOs in the study region. Proposed study region and major study components are as follows: Study area: Kalimantan, Sulawesi, Nusa Tenggara Collecting information on MFIs activities in proposed survey regions. Need assessment, financial service accessibility in study region. Effectiveness of MF service for poverty alleviation by utilizing PRA method. Examination and establishment of sustainable and effective Micro finance system in Eastern Indonesia. SME Study : JBIC has commenced SME study in East Java from June 2003 (to April 2004), which has been conducting by a leading consultant in SME sector Development Alternative Inc.(DAI). The main purpose of the study is to develop propose new financial products for local commercial banks which have already provided financial service to local market TECHNICAL ASSISTANCE 8

9 targeted and growth oriented SMEs. Which have potential clients (SMEs) but not had appropriate financial product to them. Research process is divided into 2 stages as follows: The first stage: is to conduct field survey to develop inventory on financial services (collecting information both from supply side(banks) and from demand side(smes) outreach/accessibility) and sampled SME corporate information in order to identify contributing factors for growth of SMEs in terms of sales and emplyment generation. The second stage: develop new financial products for local commercial banks based on the result from the first stage survey. CIDA Recipient: PEP-IWAPI-Manulife: a three-year trial prototype, peer-lending based Businesswoman with no collateral. This program program is active in various Indonesian provinces, including North Sumatra, East Java, South Sulawesi, North Sulawesi and Bali. Corporate Governance/ Restructuring 1) Developing of a transparent and accountable corporate sector; 2) Building up institutional capacity for corporate governance in the private and public sectors. Corporate Restructuring Technical Assistance Project Loan ($10 million). The project will close December A private National Mediation Center (PNM) was launched in September 2003 by some of JITF staff recipient: JITF Coordination between JITF and other institutions, operations Quarterly Corporate Debt Survey Capacity Building For Financial Governance TA Loan - components. recipient: Capital Market Supervisory Agency (BAPEPAM) Guidelines for improvement of corporate governance standards recipient: Financial Development Supervisory Board (BPKP) Development of a capacity in recipient: GOI Policy and technical advice related to corporate sector restructuring, provided through ongoing series of visits by IMF staff and experts addressing topics including: Establishment of the JITF Framework for Corporate Restructuring Strengthening of the corporate restructuring framework Coordination between JITF and AusAID - recipient: Supreme Audit Board (BPK) Assistance in drafting of law on accountancy (INP) and valuer profession (C) ; advice on international best practice in the regulation of the accountancy and value profession and enforcement of probity (INP) TECHNICAL ASSISTANCE 9

10 Support for development of the commercial court BEPEKA Audit Modernization Project Loan ($15.5 million). recipient: Supreme Audit Board (BPK) Development of plan for carrying out performance and financial audits and its implementation Design of staff training programs for carrying out performance and financial audits Modernization of an audit management information system Implementation of a new audit manuals for the carrying out of performance and financial audits Implementation enhanced number and quality of compliance and performance audits of relevance to main clients Parliament Advisory activities and TA in corporate governance through ASEM trust fund ($501,000): Support for the National committee on corporate governance on dissemination of the Code of Good Corporate Governance Support for Indonesian institute of corporate Directorship On training of Directors; Support for Bapepam on audit process and human resource management Develop performance audit technique capacity Develop anti corruption capacity in BPKP. SOE Governance and Privatization Loan ($400 million) and associated Technical Assistance Grants Privatization and Restructuring of State-Owned Enterprises($2.6 million) and Commercialization of Public Services Obligations ($1.0 million) recipient: MOSOE Application of corporate governance model for 60 companies Support in negotiation, implementation and monitoring of statements of Corporate Intent and management contracts of SOEs Legal support for corporate restructuring and privatization 4) SOE Governance and Privatization Program II Technical Assistance Grant PPTA ($0.6 million) (P) recipient: tbd 5) Supporting Country Financial Accountability ($0.3 million) strengthen public financial management at MOF to provide the leadership and expertise needed to coordinate and manage reform activities in accounting, treasury management, reporting, and information systems other agencies Institutional and Legal Establishment of the Commercial Court: 1. Training programs in bankruptcy law 2. Training programs in general commercial law 3. Commercial Court transparency initiatives (publication of decisions, etc.) 4. Other initiatives to improve court system implementation capacity 5. Financial needs assessment (INP) Additional amendments to strengthen implementation of the Bankruptcy Law Amendments to tax and other legal, regulatory and administrative provisions to minimize impediments to corporate restructuring Assistance to the Independent Commission for the Audit of State Officials Assistance for the establishment and operationalization of Anti Corruption Commission, and in particular the Anti-Corruption Court Policy and technical advice related to enhancing the capacity of the judicial and legal system, with an initial focus on the operations of the Commercial Court, including in the following areas: Establishment and operationalization of Judicial Council Preparation of manual on the administration of the Commercial Court GTZ recipient: KPPU (Commission for the Supervision of Business Competition), Supreme Court, ASEAN Support in establishing the Indonesian Anti-Monopoly Law incl. socialization and capacity building through seminars for lawyers and judges in Indonesia and abroad and conferences at ASEAN level Netherlands Government / Indonesian Netherlands Association (Chamber of Commerce) - recipient: Consultations with NCCG Development of training programs USAID recipient: JITF (Policy Advice through LT advisory team) (INP) JICA Recipient: BAPEPAM Training program on Corporate Governance for BAPEPAM staffs (P, 2004) TECHNICAL ASSISTANCE 10

11 strengthening surveillance and enforcement Demutualization business model (INP) Support for public seminars and conferences on good corporate governance (INP) Support for public seminars and conferences on good corporate governance (INP) Corporate Governance Assessment: ROSC (Report on Observance of Standards and Codes). Assessing the level of regulations and compliance among regulators and corporations, including the banking sector (INP) Identify specific areas for improvement that can be followed up with further technical assistance (P) The TA will specifically aim at (i) assisting in forging a sound political and technical consensus across the concerned government institutions on the measures to be adopted and on the related action plan; (ii) preparing a human resource development plan for MOF and a new treasury organization to actually implement the reforms; (iii) drafting the necessary implementing regulations and a blueprint of systems and procedures; and (iv) recommending a uniform accounting information system and public accounting standards to enable effective implementation of the state finance laws.(inp) Court Ongoing training programs for Commercial Court judges Policy advice related to expansion of the jurisdiction of the Commercial Court (P); Upgrading the capacity of the national auction system (P). TECHNICAL ASSISTANCE 11