Indonesia’s
aid unclear without aid agency
Awidya Santikajaya ; A PhD candidate
at the Australian
National University in Canberra
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JAKARTA
POST, 02 Desember 2014
The G20 recently concluded its ninth summit in Brisbane, Australia.
Although the Brisbane Summit, as with other G20 summits, was first and
foremost dedicated to discussing the management of macroeconomic policy and
global financial issues, there were also significant concerns about
development cooperation.
In the leaders’ communique, the G20 members agreed to commit to
development and to supporting a post-2015 development agenda. In this sense,
Indonesia, which has a growing economic and diplomatic profile, could
contribute more to global efforts toward development by setting up a special
agency which was dedicated to administering its development cooperation
provided to other countries.
The issue of Official Development Assistance (ODA) has been discussed
intensively by G20 leaders. Tracing back to the second G20 Summit in London,
members reaffirmed their commitment to meeting Millennium Development Goals
and ODA pledges.
It is South Korea which should be credited with more systematically
adding development issues to the G20. Since the release of the Seoul
Development Consensus in 2010, the leaders have agreed to expand the group’s
global development agenda, to protect low-income countries from the worst
impact of financial crises.
Developing countries in the G20 have also risen as “emerging donors” in
recent years. India for instance, has transformed itself from one of the
largest recipients in the 1970s to a donor nation, providing around US$1.3
billion of foreign assistance in 2014. China has become the most important
emerging donor in terms of geographical scope and financial capability.
China released its Foreign Aid White Paper in 2011 which confirmed that
by the end of 2009 it had provided a total of 256.9 billion yuan ($39.3
billion) in aid. Brazil disbursed around $850 million of foreign aid in 2013.
Turkey has also become the fastest-growing emerging donor according to
the OECD, providing $2.5 billion in 2012 of foreign aid.
Indonesia is also increasingly active in providing development aid. The
Finance Ministry states the national budget for south-south and triangular
cooperation has risen 32.32 percent from Rp 56.588 billion ($6.08 million) in
2013 to Rp 74.879 billion in 2014.
Compared to other developing countries, Indonesian ODA is still
minimal. But that relatively small amount of aid could be due to poorly
documented and consolidated aid activities. There are currently more than 16
government agencies in Indonesia that provide development aid to other
countries. Each agency has a different approach, standards and procedures,
which only makes Indonesian ODA less effective.
There have been many attempts to synergize various aid projects. In
recent years, the Foreign Ministry’s Directorate of Technical Cooperation has
positively coordinated technical assistance provided by various Indonesian
agencies.
Nevertheless, Indonesia needs a more powerful body, rather than either
a small directorate or ad-hoc teams assigned to consolidate its various aid
programs.
As an emerging donor Indonesia should establish an aid agency. India
set up its Development Partnership Administration in 2012, while South
Africa, which is economically smaller than Indonesia, formed the South
African Development Partnership Agency last year.
China does not have one, but several, ODA agencies, each closely linked
with the government’s foreign policy strategy. Many non-G20 developing
nations already operate foreign-aid agencies. Thailand has been operating the
Thailand International Development Cooperation Agency since 2004. Chile has
created the Chilean International Cooperation Agency, which delivers aid and
technical assistance mainly to Latin American nations.
There are at least three reasons to set up an ODA agency.
First, through the ODA agency, Indonesia could consolidate its
development assistance, which currently flows through various channels and
agencies in an ad-hoc way.
Indonesia has a strong legacy as an initiator of south-south
cooperation through its role as the host of the Asia-Africa Conference in
1955.
It is also an active player in triangular cooperation, which provides
technical assistance to less-developed countries with funding from developed
nations.
Its activities range from giving tractors to farmers in Vanuatu to
providing Darmasiswa scholarships. But the lack of an aid agency has resulted
in unclear goals and objectives in providing aid to other countries. Any goal
is hard to measure because no single institution is tasked with conducting
evaluation and monitoring.
Secondly, a dedicated aid agency would enable Indonesia to catch up
more with development issues. Through the agency, Indonesia could offer its
unique view of the current discourse and debate on global development
cooperation, such as the relationship between donors and recipients, where
developed and developing nations often have divergent stances.
The agency would also help Indonesia learn important aspects of aid
management, such as aid effectiveness, from well-established development
institutions, such as Australia’s AUSAID, the American USAID, Japan’s JICA
and the World Bank. The agency could also serve as a single gateway for
Indonesia to cooperate with other institutions in triangular cooperation.
Last but not least, to domestic constituents, the aid agency would
ensure the transparency and accountability of Indonesia’s aid program. The
agency could publish routine and comprehensive reports on how Indonesian
money is spent on aid programs overseas. Currently, reports on Indonesia’s
aid program are too scattered and difficult to account for.
Despite its existing status as an aid recipient and its interminable
domestic challenges, Indonesia’s current robust economic growth has provided
it with the opportunity to leverage its profile as a more active donor for
south-south and triangular cooperation.
An aid agency would not only become a diplomatic tool to expand
Indonesia’s influence, more importantly, it would enhance Indonesia’s
contribution to strengthening global development as well as promoting aid
effectiveness and fairness, which is consistent with Indonesia’s dynamic role
in the post-2015 development agenda process in recent years. ●
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