Bumb - Icctf

II
Implementation Agreement for

Strategic Partnership for Supported NAMAs
and Climate Finance
Support to the Indonesia Climate Change
Trust Fund
(BMUB-ICCTF)
II
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On behal f of:
QIZ .ill.
W
Federal Ministry
fof the Env~ronment. Nature Conservatton,
8UIIdmg atld Nuclear Sarery
lliWi.
BAPPENAS
of the Ftderal Republic of German )•
.. On behalf or:
Q). l Federal Ministry
QIZ W for the Environment.. Ne~ture Conservation,

Building and Nudear Safety
of the fedenl Republic of Gennomy BAPPENAS
Implementation Agreement for Technical Cooperation Projects
Contents Page
ABBREVIATIONS 4
BASIS OF THE IMPLEMENTATION AGREEMENT 6
1. PROJECT OBJECTIVE, INDICATORS, AND TARGET GROUP 6
2 CONTRIBUTIONS TO THE PROJECT BY THE GOVERNMENT OF THE FEDERAL

REPUBLIC OF GERMANY VIA GIZ 8
2.1 PROVISION OF EXPERTS AND AUXILIARY PERSONEl 8
2.2 SUPPLY OF MATERIALS AND EQUIPMENT 9
2.3 OPERATING AND ADMINISTRATIVE COSTS 10
2.4 OTHER CONTRIBUTIONS 10 .
3 CONTRIBUTIONS TO THE PROJECT BY THE GOVERMENT OF THE REPUBLIC OF

INDONESIA VIA BAPPENAS 10
3.1 PROVISION OF EXPERTS AND AUXILIARY PERSONNEl 10
3.2 COSTS 10
3.3 PROVISION OF SITES, BUILDINGS AND WORK PREMISES 10
3.4 OTHER ADMINISTRATIVE PROCEDURES 10
4 OTHERS PROVISIONS 11
4.1 MANAGEMENT AND ADMINISTRATION 11
4.2 MONITORING AND EVALUATION 11
4.3 SUSPENSION OF CONTRIBUTIONS AND TERMINATION OF AGREEMENT 11
4.4 FORCE MAJEURE 12
2
.. I
On behalf of:
~ F<de<al M;n;stry
W for the Env;ronmenl. Nature Conservation,
QIZ Building and Nuclear SafetY
BAPPENAS
of the federal Republic of Germany
4.5 TERM OF AGREEMENT 12
4.6 SETTLEMENT OF DISPUTE 12
4 . 7 ADJUSTMENT OF AGREEMENT 12
4.8 WRITTEN FORM 12
4.9 AGREEMENT WITH INDIVIDUAL IMPLEMENTING ORGANISATIONS 13
4.10GOVERNMENT ARRANGEMENTS 13
4.11ENTRY INTO FORCE 13
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On behalf or:
in Federal Ministry
QIZ W for the En~ronment. Nature Conservation,

Building and Nuclear Safety
of the Federal Republic of Germany BAPPENAS
Abbreviations
BAPPENAS Badan Perencanaan Pembangunan Nasional (National

Development Planning Agency)
BMUB Bundesministeriums fOr Umwelt, Naturschutz, Bau und
Reaktorsicherheit (Federal Ministry for the Environment, Nature
Conservation, Building and Nuclear Safety)
GIZ Deutsche Gesellschaft fOr lnternationale Zusammenarbeit
ICCTF Indonesia Climate Change Trust Fund
NAMA Nationally Appropriate Mitigation Action
RAD-GRK Rencana Aksi Daerah Penurunan Emisi Gas Rumah Kaca (Local
Action Plan for Greenhouse Gas Reduction).
RAN-GRK Rencana Aksi Nasional Penurunan Emisi Gas Rumah Kaca
(National Action Plan for Greenhouse Gas Reduction) .
SETNEG Sekretariat Negara (State Secretariat)
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Onbt:halfof:
~ Federal Ministry
QIZ ~ for the Envifonment. Nature Conservation.

Building and Nuclear Safctty
of the federal Republic of Germany BAPPENAS
IMPLEMENTATION AGREEMENT
between
Deutsche Gesellschaft fUr lnternationale

Zusammenarbeit (GIZ) GmbH
Dag-Hammarskjold-Weg 1-5
65760 Eschborn
-hereinafter referred to as "GIZ" -
And
Ministry of National Development Planning/

National Development Planning Agency (BAPPENAS)
Jl. Taman Suropati No.2

Jakarta 10310
-hereinafter referred to as "BAPPENAS"--
concerning the project
Strategic Partnership for supported NAMAs and Climate Finance

Support to the Indonesia Climate Change Trust Fund
(BMUB-ICCTF)
- hereinafter referred to as the "Project" -
5
.. On beha1f of:
.£Ia IFi!deral Ministry
QIZ W for_th~ Environment. N1ture Conservation.

Bu1ld1ng and Nuclear Safety
of the federal Republic o{ Germany BAPPENAS
Basis of the Implementation Agreement
The following shall form the basis of this Implementation Agreement:
The Agreement between the Government of the Federal Republic of Germany and
the Government of Indonesia on Technical Cooperation dated 9 April 1984 (see
Annex 1);
Summary Record of the Negotiations on Development Cooperation between the

government of the Republic of Indonesia and the Government of the Federal
Republic of Germany dated 20 October 2011 (see Annex 2);
Formal letter from BMUB to BAPPENAS and reply letter from BAPPENAS to
German Embassy Jakarta with subject: Bilateral German-Indonesian Cooperation.
Proposal for four joint cooperation projects as part of the Federal Ministry for the
Environment, Nature Conservation and Nuclear Safety's International Climate
Initiative dated 18 October 2012 and reply letter dated 28 June 2013 (see Annex 3)
In accordance with Article 1.2 of the aforementioned Agreement dated 9 April 1984
details of the Project are to be laid down in an agreement between GIZ and
BAPPENAS. GIZ is acting in execution of the commission with which it has been
charged by the Government of the Federal Republic of Germany.
1. Project Objective, Indicators, and Target Group
Indonesia has developed a national GHG mitigation action plan, the RAN-GRK to
achieve the emission reduction target of -26/-41% until 2020. Corresponding local
action plans for the development and implementation on local government level
(RAD GRKs) are currently made and entering implementation starting from end
2012. This defines a number of planned actions which shall be financed in
implementation through the National Climate Fund. Indonesia is one of the first
countries worldwide which has established a National Cimate Fund , the
Indonesian Climate Change Trust Fund (ICCTF). In order to have Direct Access to
the Funds within the UN system countries must announce and accredit their
National Implementing Entities. Such NIEs are supposed to function as the entry
structure for all kinds and volumes of internationally provided climate finance. At
the same time such an institution is supposed to establish a national financing
mechanism for the implementation of NAMAs.
The governance of climate change finance in Indonesia is in its initial stage and
shows room for improvement in areas of transparency and accountability,
developing the right finance mechanism to channel funds to potential mitigation
actions and target different actors, to link international climate finance with national
budgets and to steer decisions about the most effective and efficient use of funds.
The announcement of the Indonesian president to reduce GHG emissions by -26
% until the year 2020 by domestic funds and an additional 15% in case of
international (financial) support sets the stage for the development of a financial
system for climate change mitigation in Indonesia. The current structure of the
ICCTF nor other funds in Indonesia cannot provide the financing for the RAN-GRK
without support from the private sector. The planned private sector based
6
On behalf of:
A
.Qa IFed oral Ministry
QIZ W for the Environmenl,. Nature Conservation,

Transformation Fund is not yet developed, which would serve as an important

catalyst for enhanced investment by the private sector in mitigation actions. The
Transformation Fund is the name given for the private sector tranche of the ICCTF
per agreement between BAPPENAS and Ministry of Finance (ICCTF Blueprint, 14
Sept 2009). Though it has not yet proceeded beyond the stage of an initial idea
and needs support to develop its strategy and implementation arrangements.
1.1. The overall project goal:
Through the nationally controlled and well-positioned ICCTF, Indonesia will be able
to better execute nationally appropriate reduction measures (NAMAs) for the
achievement of its national GHG-mitigation action plan.
1.2. Specific project goals (output):
1. Design of the ICCTF as Public Finance Mechanism for Financing NAMAs

2. Enhanced capacity of related actors and institutions for the implementation
of the public and private finance mechanism.
3. Design of the Transformation Fund of the ICCTF for the involvement of the
private sector in the mitigation actions of Indonesia.
4. Facilitation of inter-institutional coordination in funding national activities with
different financing instruments.
1.3. Target group:
Direct target groups:

Government officials of the Ministries of development planning
(BAPPENAS) and the Ministry of Finance, the staff of the ICCTF
secretariat and local govern-ment institutions,
Private sector actors as target group of the ICCTF transformation fund.
Indirect target groups:

All beneficiaries of the ICCTF I public finance mechanism as well as
selected representatives of the international donor community in their
capacity as potential financial contributors.
The Indonesian population that would benefit from low emissions growth
pro-grams as well as the international community due to enhanced
mitigation actions by Indonesia.
1.4. Target indicators
1.4.1 ICCTF has developed standardized mechanisms to select projects and

invest funds effectively in NAMAs and is able to monitor and report robust
data in order to attract new funding by 12/2015.
Verification: Internationally reviewed Standard Operating Procedures, ISO
certification, track record of (earmarked) funds transferred to the ICCTF
1.4.2 To compliance with fiduciary standards, technical appraisals of project
proposals, and MRV of financed and implemented projects robust standards
are applied by 7/2015.
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On behalf o f:
~
aa_ l Fodoral Ministry
QIZ W' for the EnWonmenl.. Nature Conservation,

Building and Nuclear Safery
of the Federal Republic: of Germany BAPPENAS
Verification: credit rating of the ICCTF, documentation of trainings of

technical staff and project developers, international reports on implemented
NAMAs
1.4.3 The Transformation Fund is established and has leveraged private sector
capital for investments in NAMAs by 7/2016.
Verification: Investment strategy of the Transformation Fund, project reports
on different instruments applied in different pilot projects (PPP, 5% obligatory
CSR investments) of the ICCTF
1.4.4 Asset packages from financing instruments of different public institutions are
tied together and finance NAMAs in common by 12/2016.
Verification: cooperation map, financing plans for projects including financing
instruments employed by different public institutions in collaboration)
2. Contributions to the Project by the Government of the Federal Republic of

Germany via GIZ
In accordance with the Formal letter from BMUB to BAPPENAS dated on 18

October 2012, the Government of the Federal Republic of Germany shall provide
GIZ with up to €3 500 000 (in words three million five hundred thousand euros) for
the German contribution. This Implementation Agreement shall include the costs
incurred by German Implementing Organisation (GIZ) including:
2.1. Provision of experts and auxiliary personel

GIZ shall make available for the project:
• A Seconded expert on Strategic Partnership for supported NAMAs and

Climate Finance as Principal Advisor for a duration up to 48 man months to
be responsible for the contribution of GIZ and who shall at the same time be
leader of the team of experts made available for this Project
• A Seconded expert on Economic and Climate Finance as Advisor for a

duration up to 48 man months
• The period of secondment of seconded experts shall also include annual

leave in accordance with the provisions of German law.
• Long-term national experts:

o Senior Advisor for Public Finance, up to 48 man months
o Senior Advisor for Capacity Building and facilitation of inter-institutional
coordination, up to 48 man months
o Senior Advisor for Private Sector, up to 48 man months
• National Personel
o Component Manager, up to 48 man months
o Junior Technical Professional, up to 48 man months
o Project Office Manager, up to 48 man months
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On bt>half of:
• ~ I Federal Ministry
QIZ W lor the En..nronment. Nalure Conservation,

Buikling and Nuclear Safety
of thto Ft>de.ral Republic of Cennany BAPPENAS
o Project Finance Officer, up to 48 man months

o Project Administrative Officer, up to 48 man months
o Project Office assistant, up to 48 man months
o Short-term experts
• Up to 9 months of international short term experts and up to 9 months of

national short term experts supporting to the project in the following fields:
• Public Finance Mechanism
• Capacity Building for ICCTF
• Institutional Development
• Trust fund Management
• Private sector involvement
• The short-term experts under this Implementation Agreement are provided for
in the Plan of Operation (PoO) (see Annex 5), which shall constitute an
integral part of this Implementation Agreement.
• Prior to the provision of additional short-term experts, their function, period of
assignment and whether they shall be hired nationally or internationally shall
be laid down in Terms of Reference. An international expert may be an
international hire or locally contracted in case (s)he has a staying permit for
Indonesia.
• A document detailing the Standard Operational Procedure for the assignment
of international short term consultant services is attached to this Agreement ·
(Annex 4).
• International experts, development advisers and integerated experts will be

recruited by GIZ according the GIZ's regulations on staff recruitment and
accredited by the Government of Indonesia. National expert selected by GIZ
according to GIZ's regulations on staff recruitment.
2.2. Supply of materials and equipment
GIZ shall supply the following items to equip the technical infrastructure in the
project office
• Office and IT equipment, computers, printers, furniture supplies and other

technical equipment, as required.
All assets above 1500 EUR shall be included in the Project inventory and all
inventory should handed over to the Government of the Republic of Indonesia
upon completion of the Project or other agreed circumstances. The disposal of any
damaged or broken equipment shall be authorized by the Government of
Indonesia. In order to comply with Indonesian regulation regarding the inventory of
assets and disposal of broken assets, additional agreements, not contradicting 2.2,
can be made.
9
I
On behalf of:
~
~ Federal Ministry
QIZ ~ for the Environment. Nature Conservation.

Buifding and Nuclear Safety
of the Federal Republic of Germ;my BAPPENAS
2.3. Operating and administrative costs
GIZ shall bear the operating and/or administrative costs associated with the
processing of the German contribution to the Project.
2.4. Other contributions
GIZ shall make the following other contributions:
• Capacity building such as technical trainings , comparative studies, experts

exchange visit, seminars, workshops, symposiums, knowledge transfers,
and others.
• Contributions to the cost of preparing, editing and publishing of Programme
publications
• Other Financing agreement with other organizations may be negotiated at
later point if needed.
3. Contributions to the Project by the Goverment of the Republic of Indonesia

via BAPPENAS
Bappenas will contribute and coordinate the implementation of the BMUB-ICCTF

project with the implementing partner(s) at national and local level.
3.1. Provision of experts and auxiliary personnel

Until the end of the project in December 2017, BAPPENAS shall provide
• a decision-maker to represent BAPPENAS in the Committee of the Project;
• technical staffs, related to Trust fund and Climate finance, to work in the
Project.
3.2.Costs
• BAPPENAS shall ensure that the costs to be specified in the Plan of
Operation are budgeted for in due time.
3.3. Provision of sites, buildings and work premises

• BAPPENAS need to make available the premises required to carry out the
planned measures together with sufficient and suitable equipments and
furnishings. (e.g. office space, meeting rooms etc.) if not provided by GIZ.
3.4. Other administrative procedures

• BAPPENAS shall facilitate and provide assistance in arranging visas, stay
permits, exit and re-entry permits and work permits to international
seconded expert and international consultants assigned by the Project
according to the contributions made in article 2.1 and in line with the agreed
Standard Operational Procedure (Annex 4).
10
I
Onbe:halfof:
~
~ federal Ministry
QIZ W fnr the Environment Nature Conservation,

4 Others provisions
4.1 Management and administration
The Committee shall meet or communicate by other means (e.g. phone conference)
at least monthly and I or according to project needs and comprise the following
parties:
• Director for Environment, BAPPENAS
• Director of Center for Climate Change Financing and Multilateral Policy,
Ministries of Finance
• ICCTF Executive Director
• BMUB-ICCTF Principal Advisor
The Committee shall direct, supervise, support and monitor the implementation of
the project, based on key strategic documents like project indicators, annual plan of
operations, etc.
The Committee can authorize representatives for the positions mentioned above to
participate in the meetings.
4.2 Monitoring and Evaluation
GIZ, BAPPENAS and/or other related agencies shall undertake monitoring and
evaluation of the Project during or after implementation of this Agreement. GIZ shall
second expert(s)/ appraiser(s) to the Project. All parties shall participate in the
monitoring and evaluation. They shall in all cases assist the expert(s)/ appraiser(s)
in their work and allow them to examine all the necessary documents.
All parties shall be informed of the results of the monitoring and evaluation by means
of a report.
The progress of the project is reported to the committee regulary based on request
and/or on demand from one/both parties.
4.3 Suspension of Contributions and termination of Agreement
GIZ or BAPPENAS may suspend its contributions if:
4.3.1 GIZ or BAPPENAS fails to fulfil obligations arising out of this Agreement or
out of arrangements in respect of this, or
4.3.2 Circumstances arise which preclude, or place in considerable jeopardy, the
objective of the Project described in clause 1 above.
If one of the circumstances described in this clause above arises and is still in
existence after a time-limit to be agreed by GIZ and BAPPENAS or if it is not
eliminated within this period, GIZ with the consent of the Government of the Federal
Republic of Germany and/ or BAPPENAS with the consent of the Government of
the Republic of Indonesia may prematurely terminate the implementation of this
Agreement.
11
.. Onbe.halfof:
~ I Fodera! Ministry
QIZ ~ for the Environment. Nature Conservation.

of lh ~ F~d~ral Republic of Germany BAPPENAS
4.4. Force Majeure
"In the event of any failure or delay of either of the BAPPENAS and GIZ here to
perform any obligation under this agreement by reason of Act of God, floods,
storms, earthquake (natural disaster), strikes, lockouts, riots , expiations, sabotage,
battles, wars, embargo, civil commotion, labour dispute, fire or other causes
beyond its control of the parties (force majeure) shall not be deemed to be a
breach of this Agreement, provided that the Party so prevented from complying
here with shall not have procured such force majeure or ameliorate its effects, and
shall continue to take all actions within its power to comply as fully as possible with
terms of the Agreement".
4.5. Term of Agreement
This Agreement shall be valid from the date of signature by both parties up to
December 31 , 2017
The Agreement may be extended by mutual consent of all Parties in writing.
4.6. Settlement of Dispute
Any dispute, controversy and difference as to the interpretation of the

implementation of this Implementation Agreement shall be settled amicably by
mutual consultation or negotiation between the Parties.
4. 7. Adjustment of Agreement
In the event that provisions of this Agreement do not further the efficient
achievement of the objective defined in Clause 1 above, GIZ and BAPPENAS may
adjust or amend these provisions by mutual consent at any stage during the
implementation of the Project. Any amendments shall be made in writing and
signed by two parties.
GIZ and BAPPENAS may unilaterally terminate this Agreement if the commission
with which they have been charged by the Government of the Federal Republic of
Germany and the Government of the Republic of Indonesia, respectively, is
withdrawn.
4.8. Written Form
Amendments and additions to this Agreement, and any other important

declarations and correspondence of significance to the execution of this
Agreement, shall be made in writing and are subject to the approval by all parties.
In the case of declarations and correspondence addressed to GIZ, it shall suffice

for them to be received by the Principal Advisor of the Project or his/her deputy.
12
On bt!halr of:
" .ill IFederal Minisuy
QIZ W for the Environmen&.. Nature Conservation.

4.9. Agreement with Individual Implementing Organisations
The Project and other partner organizations may together conclude a binding
agreement on additional details concerning the execution of the Project (e.g. on
the basis of a Plan of Operation), or in any other suitable way to lay down those
details in writing and, where necessary, adjust any such agreement to take into
account developments in the Project.
4.10. Government arrangements
As to the rest, the provisions of the Agreement between the Government of the
Federal Republic of Germany and the Government of the Republic of Indonesia on
Technical Cooperation (see Annex 1), Summary Record of the Negotiations on
Development Cooperation between the government of the Republic of Indonesia
and the Government of the Federal Republic of Germany dated 20th of October
2011 (see Annex 2); Formal letter from BMUB to BAPPENAS and reply letter from
BAPPENAS to German Embassy Jakarta with subject: Bilateral German-
Indonesian Cooperation. Proposal for four joint cooperation projects as part of the
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety's
International Climate Initiative dated 181h October 2012 (Annex 3) shall also apply to
this Agreement.
4.11 . Entry into Force
This Agreement shall enter into force on the date its signature.
A copy of this Agreement shall go to the Bureau for International Technical

Cooperation of Ministry of State Secretariat.
IN WITNESS WH EREOF, the undersigned, have signed this Implementation

Agreement.
DONE in Jakarta on 21 51 August 2014, in 2 (two) original documents in Indonesian
and English language. Both documents are being equally authentic. In case of any
divergence of interpretation or dispute, the English version shall be referred to.
For the BAPPENAS For the GIZ Indonesia
Wahyuningsih Darajati Heiner von Luepke U ich Mohr

Director for Environment Principal Advisor Country Director
BMUB-ICCTF
13
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(r!) ot~~ 2pp:r:-o~r..iata !'ortWJ .?~eed_ by- the Con~ctincs:
' .. .. ~ '. -
{3-) 'TltQ GoV'e~Czr;; ot "'~ho Fed~~-:. "RepubJ.!C · ¢17 Ge::~n:- shell i
• -- •• ··-.-· ', < • • •
· u::ue~s othe!:':R.Se ·;;>i:oV":W.od in the pi:-<l~<>et •P'•il;;,;~""nt-" '•

~!;c at itS"h~~~&- tha' ~toll~~ ·co·u-;~i-;,lition.c
~
Sssls'.:- to ·-
ed rn:oje'eta -~-. ~': ..
-- (a) rCauri·u-~tic:l. oi t!!.:i ~eco~~ ~~c·;. · ··.·. ..
(":J) C!oc:Or:u:ad;!-ti~n !'~~ t~o .s-econded e::pe-""'i:s enct thci=
- - :: - ' . ' . ' '
.tamilies,· Uso~e.r as s_~h cos~s e:;;::o(t no-:. ~cV_by· t~&.

e~e~s themza!Ves;
(e) oi:;Zicial.' navel. b:y.
thG seconded o"Z)cr:• t·ritllin oJXl
ot..>ta~e ·~-one!Jia i
(d) pX"octz:::enSnt·. o:. the. m.ateriel.re!'~ed.. to ±l p~os=-o:ph
2 ('o) o:: thin ort:tcle; .
(e) "".."l:'~~~o,.--1; r;n:i ·~Uz.ttnee 'to tb~ ~oje¢-t- sit-e for tb.e
""'to:ial te!er,:ed to 1n :P~=•St'•pl:. a: (b) of: this
e-r:ticlo; ~_his shell nOt i:LClude pv;nen·i: of' tha c!.loJ:'C'eS
.ar.cl. ~~.;Qr:;:c;o fees :ce.!a....-re.-i t·o in J~t1_clo ;; (0) o.f'
fiL/0'7/0:t this ••••

;,,;.; va:n.c or .ft.C'..'"thro:! tr::1ir~i.n;j ·o! In.1on~s:ien t<:~chnic!'l :1nd
O£<.-izt:;ex-121 P~sonn~l as \/'ell ';HJ i;'cit!n-::i.Dts-- 5.n 8CaoJi-
d.auca -;tith the -'D~lica.bia· Ge::.i:wn ()Uidolir.cs:.;
(!!.) 'l:hG tt.Jtci:ial aup:;;~li&d for the p;r;o;jc"cta on bchel.f o~ the
- -
Governoo~~ o! th~ ~&d~aL Republic o£ Ger~ny sheLl becose
tt~e 1;J!'Opct":r o! tb.;a 1iepu.blia o! Icdonesia. on.
' . . . ' . .. . sr:;;-iv-~1 in
fu\.onesi~ 1 . unl.ess othfll't~is.o ·pro~.rided.. in 'the, project e~
-~c:I(:;cmentn;_ -the ~:c-er±.al s-,.P:pi.i~ .sh.e-11-'b·G ~~-tho tm
:cest':.:oicted. dis!JoS.:l ot the c:ssis~ed Dro~ccts end. tho .cee-
o:ded e~_o:rt:s fo'l" tha !ulfilmeilt o! -..:=hoi!: ~csks-.
(5) The. GO·.rernmCztJ ot tho· ,?ed.eral 'Repub~ie ai: c.C.me~ shc;ll
no~:L..-y:·tto GOvo~eUv. of' tb.a Re.publ.iO ·a:~ r..ndOn~·su. o:t tb.e
cO~:pe::o~tiie; eG:enc.:t.es ~) --orga:liZ~tio:lS 'o7:. authoci-;:ies- it
. . - ' - .. . . '--: ', ~
t-t4-l.l cb.t"rgc 1,-titb. t"b.e implemcl'J.ta-tion o! it~- .t!Ssis?once !or

th G. .r eipect i71! J?.-:::'0 ject:. 'rh.e CO.-Ql)o:!::~t'iz:a' • ~cane .ie.s:1O.l'g3nizg_
t":.ons -or: t-lrl;hoi"itie:i Sa' Cbcl:gcd -'Will hitl:eM~er· .1:H, '1!9
) t~tld. 'to.es rttnc i:l?lf.;me~t·ilie ~Gene::"; . ~_·_-·~.'_:.. ,.
-- ~ ;;.. --,_.·.:· .. :. ...... ·- ,,_._,.·.:_.. ,.·, .. _. ~· t
___ . ··~ ·- _·JL,;;,:iO.l~···_ ..};·:· •. :~-.--.- --~
;I;no Gomntlc::>:i;. oj; 'th~ ~;$JI,;,l;[; o; fuio~~~:i..· she~:,.,;,~ the.
-
;;t shall_ - ' ·:- · - '
---. '. '.
(a) p~<n~c at ita ox:rrc-!1!3'$ £or thO proj.c:tetc ip. T.niCJne-s:i..e tha
lol>i- •c:i buildin(;:s ro~ui::'ed, inclm;!.n:; eq'li)II:~e!'tt' • •llll
!t:rnistd.:~a tO-i: .th~ ouUdin!;s:, :(nSof'::-r· as_·_;·~~ · e<£uipmcnir
'e~ tt.=:d..sh'ingS' e~~-- :10~ SUpiJli~, b:" ~~0: GoYa..~ent:· o.f thG
;i>1;d~-a:..' r.EJ!Ju.b.l.ici·.-~t' Ge.rma:tq Sot its· e::::p<:n.s~ i
(b) exe::rpt tho Uteriol a _ U!?J;!lied ~.or the !'='OjoCta: on.- be1la:U: o~
t-he Gove::-DJ:iletri ~:-'the ··lfed~~l R9pU!:lJ.ic ··~: .~eime:i; ~011
lie-ene~S~
·.
hcr!l~:ru:r:·. due~l;
- ... · .. . . ·.. . .
~o'ct.- 2>~- e:;p_~~
.
-~.G;ti:ie:s_·- ~tt\ oth~
' - . . ··:·.:.~
:';)UbJ.::.c. charges ~s uelJ. aa otorece tee~·, :r:d. ,en:s:ure that
th~ ~-:e:ri:>l is cleE"l:'ed. b-J' cu.si:~tLS _-in dlio t_:lilo.
The_ e!o:lze:.:.e.rltio!loct e4crqt1do!1.5-, s·~u.L ~i- t"J.c: ~e9.\!last of th.a
• ir-.tL>~o:ucn·t:ir:&c t.>C¢M~ t t:hetiev-el:' po:se:ihiO ~ eJ.n>) 'a,:wl.Y" ta
-
:::rate:::-io:l. v::-oct::t.'ed in Iodonesia;· , . . . .
'. ..
' ' -. • • ·:·:;;-: 0 .. ' ' ' •
(c) -neet the - o:>e.rat-.:1.-on e-rA

' -~
IIBinteno·nca
'- ,.
costs. of -. the
. -· .' .. . .-projects;
.
' . ' ' -"
(d) ~~e ;;.·~rqil~_bl~ vt itS ex;per..Se t-he ru·.on~sien- to.."Porb.:J e!rl

O-;;t.ez"" p~s?nnoi ±_eq_i:li::'ea;' tn:a a~....·;.;:nr&emcnt-c =ho-'Uld
:·;x-o_jcct:
incl'C.dc ;;: -t:b:! ncb.<Jd.Ul.o to:r: t~e-::U: as.s~~ent;
f:L/07/0l
" ' - 0
/;'
'-·I
(a} enstt!.'a ";hat". '.;b.e fur.otions _o! the ·.necondod:. OX!/nrts -·~ra
I t;;;:ken oYer- aa· ooon er:r l)OSsibla b;: In:!.onosien e~ortc· ..
I
I
/
tiac:re the J.~t'ter. !.>ZS to- .recai~ra bcsio or i't.irt'he::: t'"rE:';.Il
ing i.n Itx.i.vncsic· ~ tb.a l:'ederel. !!epu.i3lio ot Ge~::.:H~ .or
' -
c!'!lc..":' ct:llnt::-:1'.aa r;~~\:Jt:.t to this· 4'\,&eecen~' 1 1t SiliJll ·
in. zood ~Ulo. no~in.z.te, in. ccmul:':::.:tio:o. ~ith tho Uissi<On
ot the :?ede=al- Re~~lic o!' Ger::.::teD-7 1n the Republ.i.o o.f
Ir.donesia ox i·:ith e:xpertz de-s:f.gnet:ad by, t'!la -Hiss ion:,
sut~ici~trt- c~nd:i.dti::as !or such tr<?irl.-1:l6' .. It sheU on.l7
nouiJl.G.iia _G'!C~ · o~ndltiates es h~ve tivo:t. e::1. und.c::':tt:t:Z:i.l:l(s
_ t'!1 \"/o;:-!= _o!l the reEpeo.t:..v! ~rojcct ;or wi~n g-Over:.uucnt:
se:t"V'ic~. fo=.- oot ~e~:st rive :rear~ ~!'l?er eotilplet'i.;::!g 'th.ai:l:
'
, It sl:.e-11-en.::nt::e -that. q..rrse Iz::i~ncsian. c~<::rt"s,. · reeaive
pests Coiu:lansu::'3tQ t!ith _the:il." quelii'icction~ ·:·r: - ..:,,
)
(!) reco~n.iztft in. accor'C!.3MIJ uith th.ei= re~ecJ-.7i7"EJ. S -:~cdcl."d, 4
e:x:omi::l.1tion. ;ass .ad. by ·I':x:ld.onesian·n.vt"io~l3 havinG' ra .....

ca:ived. t:;:~ ininf; pur::nuJci: to thi:l .Ar;::-eo..:.cn:t:; / :.
(g) ~flo;;.:i :{;he secolld..ed ~3l:'ts en:r ess1.st11nao the;". w:y .re-
"qu:l=:'& in" c'·=-i::g ot* the taslal i.. s:!g::xed 1:o then· . el:ld
a'V'c1i;.abio t!.to ocQ.eaS~t7 ~eco:.-d.S e3;.~ <\CX:u.m.Ont-o; . ·.
ttlQ Ito
(h) e::su:.o tile l<iocl;?' J?l:'CVision. ot tho -<>ont:ributioil$ ""'!uired
to iuplc~ent the p~ojaotst inso£~r ~s these o~o eo~ ~r~
v:i.ded 1:>7 the GovC::IU;Jel:~ ol': th" ~'ederol Re:;>1Jblie of
Gert.\3~ :pur:Juent ~o the !;i:t'o;jcc.\; .:l'ri~Ilf)cr:io:i:r:.c;
(i) ensur3' tO.;.,-!;. c- ll :t-;:on~.s Un. ~bene ie!l 0-oci:o=not'- ·wit-h tb.e
f.Dploncntation o£ tllia ~e.ement tho p:i:-ojoct: i1~atlG,!,
i>n£'.
u~:'lt ere .tul.l.7 ·i!l::o~i.led -oi tile~ corr~cnt~. in. G"ood. t:!L:.a.:
• • •. • r• •
•
' .... . '
-
(l)- cc;,c G;J·~c:r=cnt ot the .L'edori>l Repul>l~.<i c: \h:rl!l£:n;;r, shell
"-"""""" taot 'f;l:!e 3eool:ldcd experts lir<> J.>lod~GCI. ""~-J.>lodged.
( ~) '~o <lo tildr b~st' 1 uitilin tllo .:f':•m•1:o:::J:· ot tao vr.rongs
mont's concluded. on t:lci:: W'tl:t'l:t to 'be11] r¢!l:ioTc · tho
p11::pooe:r sot i:o,::-th ill Arti<:l:<> l or: tlli£1 A~eliCnt; -'":""--
(!:>) not to i.c.te:r!crc ·-in. the in:tm=n!l. at.t111...-o o! t'"ne Re .-,·:::.'a;;-·
'
1?\tblic o.t! Inc~.o:cosi2;

(c) J~o =.-ezpao.t tU.e lOws t~a$'. ragul.£ltion= on t>:•ll !?S: the
custoM ot t1le ne:;;\ublio o£ !nd.Ouosic;
!iL/C7/0.!.. (d) not' ......

(d) not to_ one;ar:-<> in ~n;r g~j~'1!ul. occUJ?ctiot~ ottler th~n
- tha-c .;;i uhich th-o~ hove be(!ll ossjznod;'- ··
(o.) to co-o)?o:rtri;a in ~ _S!dz·ii.: o!. t.:utucl aoru~:\'.d~nc~ ;:-JittL
tho o:..ricZ..:;tl. e-rsenciss 0~ t:te !!opublia ot· 1.:tt.toncoi~;,t
{2) r::::.aGo"tc:n::tunt o£ the Fcd~el Re'l')ublic o.f .Ge.!:":::.:.c~ ahol1..
~t.sw:a thot·,_ b~to:r:a ·en ·~expert is soconded, the consa.nt
ot'. t:ho GcV'cro.c:oU::! o:: tlle Rev:ub~ic o! I:¥lonosi.v is ob~&in
.
ad •. Tho im.plemcntir..r:; .:!{5enc;;"" shell to:.~wrd th~ c'tu.:::"icuJ.'I.!m.
" -
V'it:ve- ot tho expe=:t -se1:aated b:'" it to tlLe G-o~ernaent o,t
th<l Republic. or Inior.esie. tos-ethar ui~~ e r9qu.szt tor
cor...se.ct "'uo hi:: Seeotld:m.o::rt;,. ·It. no no~i:ic~tion to t-ho.
cont:ra:r;l is."rece~"Ved ~Qm. thG Goveriunent o: tb.e Rep'Jblio.
. . I,
c! rm_;:xn~sia.. ';f:.-;nin three· months, eonse:it shel~ be
essl:llled to h.,va ·been e;ratrt:ed •. - -~-- . •·.. ::..
(3) I! the" Gov=ont o:t: 'the Re:trull~ic o! I:ldooesia "
!rl.shes e
seconded ~'"Port: to be-':rec:alled.1, it' sht>tl _cd: tho ep~o/~
) p:;;d.ate t;iJ:ne contcet "th.a Gove-~nt · o.Z: i:'ho. li'edereJ, Ro -
!)u.bli~ ~t .G·~~ anC.··'ci-v_e the .l"eas<:m.·:o;n its ~equest- •
... _ : S.-~'re<il~~J.;rt J~b.o Govu~en:.: Ql the Fade:-al R~uDlic Ot
G~~ .ah.tollt tAlon a. Secorded ·expert is to_ be recalled
" "
b_;i t b Ge:t'~l1· e._ ide,. ent"ure- that the Govorw:l<Jl::tf; o~ -tho
RernWl=..o <'J-r- Inrl.o~s~ i.3 Worzted thczocc!' ct' tho ~''L'l:?l:'0--
1'.:'iate f:i.oe.,· ·.
In both c~ses, tho £uceeS~ shell be d~,etchei·~o ~
C:.ones:io in -:;t;.a stomo aenner a:s pr6videC! :o:.i" i:t !'l2%'tt:'.;t•ct.9il
. -... ;.
-"
' !;· ,.. ·:
;;.'·.. ____
"
.
tha-Uapublio o~ ~onosio shell
oZ
~bo~nee~ssor,r e!~ortS ~o-. eUStre that thG aecondod e=.- "
Pe---ts Jltrl_!lembcl:'s o'£ tu.a~ Zamil.i('lls- bolo.cg~ to tb.o-:b:.!

house!lold (heroine:t:ter re!a:::red to ~• •eY.;;crt-3 •:::<!.
:dep¢z:deo.~str) rcc$~.'V't1' l)rotection tot thci::' })E!~ZQ!l end
tb.;::i:' nrone:r:t:r. ·-
.. - ..
·- ~- ·
1 ••
·, ·
£~1:'-t:hin pu:ipoae, ·i~·sheu :
(e) esstlllo licllilit;' ill plil<le o~ thQ ooo~ndod o::q>orts in
rcsl'oeti. cr. an:" dacwge causOO. b7 th.olil in: oa=rying out
{;lii.s ·tl.g:ree
:tcn:t; ~~"' cltd.Ll OB6inst tho o:..."l'cr'as sh.all i;o "bhut et,;.
-
"
tent 'ba preol-..'iiedj t-he Gcvcr:u::.ctr~ o::"
tho nopwlic .,;:
•••
'
!:'
/· . ' .' -
.·I I . I:~tq·ncis':t.O ruy not eSse..."'""t' :;;;ey.cl~::..o :r:o::: coaponsotion
lj st:
~Gtd.o. ·i;~~. S~coi:dad· e:tpert.;:r,_~-:L.~cs,p,ectiVo of cony
' .
I itJ::;el !Ouni:Ybicn oi_ S\!C~ cle~, ·exUe;?t in t!:.e Cf!SG
? o:f d_ali":>orz:tll't __ i,.n:tCntio:l·-~r g:coss· neglig'cr.-"::;c;

(b) er..smf_Q:·tbet.-.the
·' .. -. -s~C.Ordod: e~~rt~ ttill. no·l;. be
-... ....... -
subject'~
<:o~ cr:t:'e-st ol.! dc:i:~ntior.. in respect oi: E"n:y ee~s or

_om.i.Ss.iOns ~- io.clui~ ~oro.S._ ·s];,a!:c~: or_ wri·:.ten:, in
corlnection ~ ,1i.f;n · t·b~ <l3ZTYizls- Out· .o·f'·:a ~.,s:a: assigned
. -- - -· . . . -· .
(c) !)·c:=ap tlle lb:porls snd dCJ?ondcnt;s ~o cntc:;;
" ·-' .
~~-~,. the_& ir.: .7~'a.o:.--d.n·..o~:· ;;itb. · ta'!s<At:~J::a·e-racnt·,
. . .· .. '... , .
;,oo leon
. t~e- C1~ 'i.mb.·ind~~~. a~ ·;,·cy: tk~(
·:··.. (d) is~\iii'to' th~ 'aY.,orts'~ntJ.:'d:~;,.;;;..;,;ts 'doe,lDellts
··~.-· -- ..
.,. . ·-· :·-··-· --·',, :- , ...•.• ·-·
-· i.dctt.ii.fia::ition :r:-·c:c:i:T~ .tc tho- :p.b5tootioh
'
•Pd.
;;,ssi:;rt~£~~_:-~~-rOrded . ti:.~~ h7 th~· G~~cl.~nt oZ -tho
' ·n~-:.~li~- o:f T.niionGs!D~....: '::.·-··: -;: :::._ · ~--
) ___ ,_ . .-,.· .. ··__. •• , .. ·.- ... ·---·•'...,!..'•'.
-.. -
· • .·
(2) ThO GO"~c~?n~. -~f t_h~ .!i~Puol;ic~~;i;t ..~~~sia. st;sll
'
•'
(e) l~;iJ .nO
- :. ~ ·-
l(axes 'or',...,:eth~·
,._., .;.. ~,.
:i?iJbiic- ~!£eli~~
.. ·:···- ----;·,:.· .... ·: ..·-· ·-
~-
Oil
...
p~;r1!!01l'.oS
. ~do 0-t thei
... -:f:t'om
_-
rundn o£ tha GQve:z:ri,m(,nt-
. . -·.·-:.-:--.-- .:.-. -. ;;~,-,_-- -···-~· '
!~ept:.b~io o~ G«rmscy to s"oonded. e~erts end. non

·'- . ·; .·:·--. ' --. ;-::: .: . .-... ·. • < .· .- :: :'. ·, •• - ·.;: • --
:nd.::roesi.:Hl:.J t''l.r!'!IS" :rar ao:tivit"ies a-c~ied ot..'1: . '!l!lder
.
th~ ..~e;l, •.;,.,;;.;,; . . . . ''- . .. .
(o) pcrs:i:!: the o::::pcrl's e.nd d.epe.cdGnt's. ess:!ined. :C= et
leost si:: :::lOr..th.s··· to· iJ:::porl .wit~~---si:l: coD.tns eti:eJ: ..
tlleb o:::rri~r2l' 1 dl..'i:f· end ta=c-~eo end t·rithout. p:rovi<!.
·-- - .... -. . ~·-·.-· -· --·-·· .. - · .
inc; .soe'U't'.il:y1 orlielos int~llded .Sor thoiz porsonal
--
'~~:to. ;-~jcci;·. 1:~_- ;~-~~~t_i~~ ~~-it~- ':tb.~: o~:t!Dl~-t.ion
~£ their ossii:M<>::t. Such ' erti<>l.~s
. ....sho:U,;
. . :L:,lt:de
. :!':o>:
• eech. hlllusehOld o1;1-o ;r~:eigo...-ato:r, oJ:.o d.oeilf'reeztJ~. one
.
weab~ neeh.in~, _: On~--·~~o-Obr•, onG- ~odio·,. ono ro"co:rd
· · ;Pl9j'er~·· Ono · td:2e ·x.:acorder; st:Dr:..: :OlCct:::-icol ~l'l'~~neei~
thl:oe '1-i.r.:.Coxxlit~n'er!f,~ two· W:etoi- 1uitrtd. Ori9 _lrt:i1i ."
c~~;J t ,- one movie o~care 'a-ni ori..o" ~0.~-oc.'tor.-. O!:.e. vid.lo
. .:- Se-t: ~I-A. ono· ·l:olovb:.Qri ·s$t ·.ro£. ~·~eb. 'b."ou.sob.oiri t:ae:r- . bo
i.r::po~ cd -~-rit'!l a.
sp eo iD-~ pormit: ~ .' ." ~
T'!:l.'l e:ribicltHf I:lOl;ltioned_ tbove . Sh:JU. 'f?e i3::tcm,tr'' !':r.om ~~
.e:::poct d<:t;r ..Uc:i ra-o:q;>orlod. It' tho erli<::l.es mazr•ionod ·
cbove e:x;o ·s;~--id -"in· ~an:e.·s~.-, ._ tho.~:i:~i~~~ 'T."'ldonesUn
l..-?!ts t-nd. _.ro~-.ll.~~ ic~ sh.: ll' ·,_vp2y.. · ·
f • • • ·-·· H
•••
HL/08/Cl.
9 -
_(c) permit. e~H:a o:: tho seconded. exporls·, eas:i.e;neC !ori et
least Six niOnt:hs 1 to Pt.tt'chas·e in Iodoila's 'is duty end.
tax fr~O 300 Hithc\rl;' ~rovid.i<"lE' ~CC~it:;"'_ Olle!. Zlat~
vcbicla of: l~Jcal :pS:odul:r:.:iOn: !9;;: theil:; ·vcrconal use;_
(d) pe='mit \;ha c~o.rts end dene.odcnts: t'o -itlm~rt'
.- . ., f . .~ - -
their pc:r_~onol raq1.:irecen.t~ ~odicp:acnt~l'; f<.JOC~.stu.!!'S';·
.
!o:;:
\
bcva:t'q~eo ·- a'P£.. c~hor· ex:Pcnde-ble·. ,z;oOO,$_ -e~- lfil--ll ·as sper$
perls :t9:r: teo c;eods mentioned. in pera~oph 2. (b)O.t: ·
th5.s· A..-t'icle~ .. l!"ood$:tu:tis ,· bdvm:ae;as · enc!. othe~ . e;;,
. :>endeole h~un!lo:JA :;oe<is sll~li bo si!l>jcet .t'o ll!.?x:Unum
Yo;lues os ~Cate~:aincd ·b7 _:tr..done~~:t; J:eg-ulet"ions;
(a) issu_e to .iiho_·:e:;PeJ::ts- erL. do!,).end.cniiS:: -_:ci"ea _0; che:rg-e
and. :tithoui;- ·r~q1.J.jzin,S- see_Ui:it:i, th~' .n~ccs·sa.~-··.V':iSa:r
es ,1eu
... -- ·~s.
... ,:ol:-k: a~.
·: '·. ~- .
res·ide·nce
·ptn-...itS:.:
·.;" :
·-_·:---.~.·- · ........
(;;!} Tho p.riv"iJ.csas e!ld. imm.unit_iaa · 1,n:orsuZnt ~o pei;"ot:j:'«phs I.
'
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(b) end 2 o:f'. this Ar':icLos ero g:r:o!l!:ed i:l the' interest
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Summary Record
of the Negotiations on Development Cooperation between
the Government of the Republic of Indonesia and the
Government of the Federal Republic of Germany
held in Jakarta on 20 October 2011
Negotiations on development cooperation between the Government of the Republic of

Indonesia and the Government of the Federal Republic of Germany were held in Jakarta on 20
October 2011. The delegation of the Republic of Indonesia was headed by Mr Wismana
Suryabrata, Deputy Minister for Development Funding Affairs (BAPPENAS). The delegation
of the Federal Republic of Germany was headed by Ms Brunhilde Vest, Head of the South
East Asia Division at the Federal Ministry for Economic Cooperation and Development
(BMZ). Lists of the two delegations are attached as Annexes 1 and 2.
The negotiations took place in an atmosphere of openness, trust and constructive

cooperation. The two delegations reached agreement on the allocation of the funds available
for Technical and Financial Cooperation.
Within the German government, the Federal Ministry for Economic Cooperation and
Development (BMZ) is responsible for development cooperation. The BMZ is therefore the
political point of contact for all Financial Cooperation and Technical Cooperation projects and
programs and all other projects and programs mentioned in this document, unless specified
otherwise. The exceptions are projects/programs mentioned in part 1.2.4. for which the
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety is
responsible.
The results of the negotiations are recorded below:
1. General context for development and climate cooperation

and policy dialogue
1.1. Opening statements

The opening statement of the Indonesian delegation is attached as Annex 3. The
opening statement of the German Ambassador is attached as Annex 4 and the
opening statement of the German delegation as Annex 5.
Page 1 of 27
1.2. General context and prerequisites for development cooperation
1.2.1. General context
Both governments agreed to continue their cooperation in the three priority areas
of climate change and sustainable development, private sector development and
good governance and decentralization.
Furthermore, the German side explained that the BMZ is currently reviewing its
strategy with regard to emerging economies that help shape global processes
within the G-20 - among them Indonesia. The BMZ is convinced that finding
answers to key issues such as global environmental protection and climate change
mitigation, peace and security, and the elim'1nation of extreme poverty worldwide,
can only be achieved in partnership with these countries.
Together with the promotion of sustainable economic development and the

dialogue on global development agendas, mitigating climate change and
environmental protection have emerged as important issues in future cooperation
with these countries. These issues are well suited to being addressed within the
framework of the three existing priority areas of bilateral German-Indonesian
development cooperation.
It is also planned to broaden the range of development policy instruments to

include - among others - triangular cooperation arrangements as effective and
innovative tools complementing bilateral development cooperation. This could be
of particular interest for Indonesia. In this regard, the German side expressed
interest in supporting Indonesia's South-South Cooperation.
1.2.2. Additional financing instruments
Both sides welcomethe KNV's financial instruments, such as promotional loans,

and the support available from DEG as additional options for assistance.
The German side expressed respect for Indonesia's progress and development
and is convinced that many areas are progressing well. Limited funding is often a
development bottleneck, but could be addressed through promotional loans.
Page 2 of 27
1.2.3. Special Energy and Climate Fund (EKF)
The German government informed the Indonesian side that it had established a
Special Energy and Climate Fund (EKF) to fund additional measures aimed at
climate change mitigation and adaptation and the preservation of biodiversity. The
source of these additional funds is revenue from the auctioning of carbon credits.
The funds are made available for project(s)/program(s) under the responsibility of
the BMZ and/or the BMU.
Through this additional financial support, the German government wishes to

demonstrate that it is contributing to the goals agreed at the global climate
conference in Copenhagen and confirmed in Cancun, according to which the
industrialized countries are to mobilize, starting in 2020, an annual 100 billion
US dollars for climate change mitigation and/or adaptation from public and private
sources. The German government also wishes to make clear that, with these funds,
it is helping to fulfil the commitment made at the 9th Conference of the Parties of
the Convention on Biological Diversity (CBD) regarding protection of forests and
other ecosystems and the CBD's Strategic Plan 2011-2020. The Indonesian side
appreciated the explanation given by German side and requested the latter to
provide further information about this instrument
The measures outlined in sections 1.2.4.2 and 1.2.4.3 will be largely financed out of
this fund.
2. Dialogue on bilateral development cooperation; commitments
2.1. Volume of commitments and reprogrammed funds

The total volume of bilateral Technical and Financial Cooperation since
cooperation began in 1961 amounts to €3.44 billion. The Government of the
Federal Republic of Germany undertakes to increase the total amount and to
provide the Government of the Republic of Indonesia with a new amount of
€188.75 million for bilateral Technical and Financial Cooperation for the period of
2011 to 2012. This amount comprises €158 million for Financial Cooperation
projects/programs and €30.75 million for Technical Cooperation projects/programs.
There are no reprogrammed funds.
Included in the sums listed above are the following three projects that have been
agreed upon through an exchange of notes (Note Verbale No. 245/2011 dated
05.05.2011 ):
Page 3 of 27
1vt
1) TC, €0.5 million for the project "Support for the Improvement of the Indonesian
Population Administration System" (PAS) (TC): PN: 2008.2096.9
2) TC, €1.5 million for the project "Assistance in Preventing and Combating
Corruption in Indonesia" (TC): PN: 2005.2201.1
3) TC, €1.0 million for the project "Study and Expert Fund" (TC): PN: 2011.3507.8
In addition, the German government is willing to commit from BMU funding lines a
sum of up to €20.7 million, which excludes funding for global projects that are to be
implemented in several countries (see 1.2.4.2 project on V-NAMA and 1.2.4.3
trinational project on biodiversity). The funds under the Special Energy and Climate
Fund (EKF) for activities in the field of biodiversity (see 1.2.4.3) are earmarked for
the specific activities as described in Annex 6 and cannot be reprogrammed.
Project Overview
Utilization of funds
through Technical and
Page 4 of 27
1vt
Preparation of Financial Cooperation projects and programs
Both sides agreed that, in order to prepare and support the envisaged Financial
Cooperation projects and programs and promotional loans, they will conduct studies,
produce expert opinions and deploy experts as the need arises. Such activities will be
coordinated between KfW and the relevant line authority. The funds for such efforts
shall be made available by the Government of the Federal Republic of Germany in
addition to the bilateral Financial Cooperation commitments. Both sides will report on
the implementation and outcome of such activities at the next government
consultat'1ons and/or negotiations.
Several studies are under preparation. Implementation of the respective investment
projects is subject to a decision by the Government of Indonesia regarding its
medium-to-long-term borrowing strategy and positive decision on the respective
projects.
Studies are planned in the following areas:
1) Social Health Protection

2) 1000 Islands Renewable Energy Program
3) Sustainable Hydropower Development Program
4) Thermal Power Plant Efficiency Program (Promotional Loan).
2.2. Priority area "Good Governance I Decentralization"
2.2.1. Dialogue on the priority area
As important reforms are underway, the Indonesian government can be praised for
its efforts and achievements, among them the well-designed policy on gender
mainstream'1ng and gender-responsive budgeting. At the same time, both sides
agree that issues like religious co-existence and improved participation of citizens,
i.e. women, require further and close attention by decision-makers.
Based on the National Development Plan 2011-2014 and the recent National
Economic Activation Plan, decentralization, bureaucratic reform and combating
corruption continue to be three basic pillars of governance reform in Indonesia. The
fast and high economic growth as well as the rapid change in the use of natural
resources requires the improvement of the legal framework and administrative
guidelines, as well as their effective implementation in almost all sectors and on all
three government levels. Reforms need to address minimum service standards,
new principles and procedures for fiscal decentralization and general administrative
management of public policy, planning and implementation to ensure that the
Page 5 of 27
present high economic growth can be transformed into a sound and sustainable
basis for the future development of Indonesia. The revision and implementation of
important laws and government regulations and appropriate guidelines and
procedures for bureaucratic reform are important steps towards more harmonious
and effective future development in all regions of the nation.
Also, the German and the Indonesian sides concur that the present institutional
setting in Indonesia provides a good basis for the eradication of widespread
corruption in the country ..
2.2.2. Technical Cooperation
2.2.2.1. 2011 Commitments
Decentralization as Contribution to Good Governance
Commitment: up to €2,000,000.00 (grant)
The program combines consulting and support measures for four Indonesian
Ministries, "Ministry of Home Affairs (MoHA)", "Ministry of Finance (MoF)" and
"Ministry of Administrative and Bureaucracy Reform (Kempan)", and the Ministry of
National Development Planning /Bappenas. It is aimed at developing a sound
framework for policies on decentralization and bureaucracy reform in Indonesia, as
well as improving public services both quantitatively and qualitatively.
With the current financial support the program will run until the end of 2012. The
additional increase of up to €2 million will guarantee funding from January 2013 into
2014.
Strengthening Women's Rights
Commitment: up to €1 ,500,000.00 (grant)
The ongoing project to strengthen women's rights in the Republic of Indonesia is

active in three areas: the completion and implementation of a national strategy for
the improvement of the socio-cultural position of women, the preparation of a family
law reform and measures for legal education. The national strategy for the reduction
of socio-cultural discrimination was adopted by the ministry in late 2010.
Additionally, the ministry is planning to develop an implementation strategy and test
its applicability.
Page 6 of 27
1\4·
The increase aims to support the ongoing project financially for the time after 2012.
The focus is clearly on the improvement of framework conditions to create policies
responsive to women's rights at national and regional level.
Note: The funding for the following two projects have been discussed during the
government consultations in Jakarta on 7 April 2011. The funding has already been
assurad by a note verbale following those talks (Note Verbale No. 245 /2011
dated 05.05.2011 ).
Support for the Improvement of the Indonesian Population Administration

System
Commitment: up to €500,000.00 (grant)
The ongoing project supports the modernization of six local authorities through
Technical Cooperation and small financial investments. The cooperating partner
has selected 24 additional local authorities that would need support in this area.
This project could serve as a country-wide reference for the modernization of
population administration in other local authorities. It also provides important new
regulations, procedures and capacity-building programs for the planned
implementation of the electronic identity card in Indonesia.
Should this be of interest to the Indonesian side, capacity development and training
could be offered by GIZ, but would have to be funded outside the regular bilateral
development cooperation. The German side would be pleased to provide further
information.
Assistance in Preventing and Combating Corruption
The goal of the increase in financial support is to extend the project until mid-2013
and to enable the Indonesian Corruption Eradication Commission (KPK) to better
tackle corruption. In addition to the "clearing house" as an instrument for knowledge
management, it is planned to establish an Anti-Corruption Learning Center within
the same institutional structure. In cooperation with other ministries and the national
education institutions (e.g. the National Academy of Administration or universities) it
Page 7 of 27
is to develop educational programs and offer train-the-trainer courses for mediators
from ministries.
2.3. Priority area "Private Sector Development"
Both governments reiterated the priorit'1es that were laid out in the Medium-Term
Development Plan of the Indonesian Government (RPJM 2010-2014) and that are
reflected in the two sub-sectors that have been selected for Indonesian-German
cooperation in this priority area ("Promotion of the Private Sector" and "Technical
and Vocational Education and Training").
In this context, the German government complimented the Indonesian side for the
high economic growth rates it has sustained throughout recent years. It shares the
Indonesian government's concern about existing deficits in infrastructure as well as
the regulatory framework. At the same time, the German government voiced its
expectations that the implementation of the "Master Plan for the Acceleration and
Expansion of Indonesia's Economic Development 2011-2025" (Masterplan
Percepatan dan Perluasan Pembangunan Ekonomi Indonesia! MP3EI) will address
both the remaining bottlenecks to more quality as well as the more equitable
distribution of growth. The two sides agree that strong private sector development is
key to sustainable economic development. In the light of the Master Plan's focus on
regional economic and human resources development as well as its call for
increased private investment, both governments agree that the ongoing projects on
regional economic and human resources development are well chosen and provide
a good basis for further aligning German contributions with Indonesian development
priorities.
All in all, the German side considers Corporate Social Responsibility (CSR) an
important concept and would like to enter into a dialogue with Indonesia to explore
further possibilities for strengthening CSR instruments.
2.3.2.1. 2011 commitments
Regional Economic Development Program
A central focus of the ongoing project will be the improvement of the general
framework, sustainable mainstreaming of local and regional development (LRED)
Page 8 of 27
instruments in partner institutions, and better inter-linkages between the
approaches on regional and national level. The approaches adopted at national
level, as well as in Central Java and in West Kalimantan, will be further developed.
In February 2011 West Nusa Tenggara was selected as the third pilot province of
the project.
The additional funds committed on top of the existing commitment are mainly to be
used to extend the program to include the new area of "Green Economy", in close
cooperation with the programs in the priority area "Climate Change and Sustainable
Development". A core issue in this area that was put forward by the Indonesian side
is the attainment of broad-based climate-friendly economic development by
improving resource efficiency and promoting innovation, specifically aiming at small
and medium-sized enterprises. This area is an appropriate extension of existing
approaches in the area of climate and environmental policies and provides many
possibilities for cooperation with other areas of German development cooperation
as well as with German private businesses and Indonesian companies, for instance
in the area of Corporate Social Responsibility (CSR).
Sustainable Economic Development through Technical and Vocational

Education and Training (SED-TVET)
The joint Indonesian-German program is aimed at improving the employabHity of

TVET graduates and jobseekers in selected regions across Indonesia (West Java,
Central Java, DKI Yogya; East Kalimantan and South Sulawesi). The approach
addresses access to and quality of schools and training institutes as well as the
general TVET system. Supporting a more conducive regulatory framework and the
better use of labour market information will ensure the program has an impact over
the longer term. Cooperation between the education system and the private sector
is an essential feature of the program.
An additional grant of €3 million will be used for the extension of Technical

Cooperation to further refine the ongoing SED-TVET program in the following two
fields: 1) To support the Ministry of National Education in the implementation of its
new SMK (vocational school) 3+1 program: The new program is aimed at further
enhancing the technical competencies of SMK graduates and improving SMK
graduates's access to higher education institutes. 2) To promote selected SED-
TVET institutes of the Ministry of National Education, the Ministry of Industry and
Page 9 of 27
the Ministry of Manpower and Transmigration to become "Centres of Excellence":
Utilising the experience of the former project "Indonesian-German-Institute" (IGI),
certain TVET institutes are to be made into regional centres of excellence. The
centres are to serve as regional hubs for certain sectors, meeting international
standards and facilitating the school-to-work transition of their graduates.
II is proposed to extend the current project phase by one additional year (until
December 2014).
Moreover, both sides agree that initial steps should be taken to explore ·the
possibilities of triangular cooperation with Myanmar in the field of vocational
education and training within the framework of the SED-TVET Program. The
Indonesian side expressed strong interest in triangular cooperation and made clear
that the modalities of implementation have to be discussed further.
2.3.3. Financial Cooperation
Debt Swap VII: Scholarship Program
Debt Swap amount: up to €18, 768,936.24 ODA claims rescheduled
Cash payments of the Indonesian Government into program activities: up to

€9,384,468.
The German government plans to offer a further debt swap, this time in the field of
higher education (Debt Swap VII), which will be implemented by the German
Academic Exchange Service (DAAD). Program activities concern the financing of
scholarships for doctoral and postgraduate studies of Indonesian students at
German universities.
This offer for the planned Financial Cooperation Debt Swap VII is conditional on the
approval of the budget committee of the German parliament. The German side
welcomed the Indonesian's side pledge to rapidly implement the outstanding debt
swap for nature VI (2008).
The cancellation of the Debt Swap amount will be based upon cash payments by
the Indonesian Government into program activities of up to 50% of the Debt Swap
amount. The details of program implementation will be agreed in a Debt Swap
Agreement between KIW and the Indonesian Ministry of Finance (MoF) and DAAD,
as well as in a Memorandum of Understanding between the Ministry of National
Education (MaNE) and DAAD.
Page 10 of 27
'M
2.3.3.2. Ongoing Cooperation:
FC- Sustainable Economic Development through TVET
For the FC module of the Sustainable Economic Development through TVET-

Program, both sides acknowledge the progress recently achieved in the preparation
of this program but also note the delays already incurred. The pending loan
agreement will be finalized swiftly and signed soon.
2.4. Priority area "Climate Change and Sustainable Development"
Both governments acknowledge that the current efforts of the Indonesian

Government to voluntarily set the framework for national actions to curb
greenhouse gases (GHG) in a presidential decree (RAN-GRK) is an essent'1al
stepping stone towards achieving the reduction targets committed to by Indonesia
(26% by 2020). In the light of Indonesia's successful economic development and
the strengthened focus on addressing the bottlenecks of economic development, as
outlined for example in the Economic Master Plan, both parties agree that a
continuous effort is required to further reconcile economic development with
protection of the climate. The importance of close cooperation in this field is further
underlined by the fact that, as mentioned under 1.2.1, mitigating climate change
and environmental protection have been identified by the BMZ as pillars of a new
partnership with emerging economies like Indonesia.
In the forestry sector, the German government welcomes Indonesia's reform efforts
in the forest sector and the first steps taken towards the implementation of a
consistent REDD+ framework in Indonesia, including the harmonization of
monitoring and evaluation. The signing of the "Moratorium" in May 2011 was an
important step forward and will give also new impetus to the protection of
Indonesian forests. Both governments agree that coordination of all efforts to
protect Indonesia's forest needs further improvement.
Page 11 of 27
The German government encourages Indonesia's plans to reduce and reform
energy subsidies. In this respect both governments recall the decision made during
the G-20 summit in Pittsburgh on 26 September 2009: 1
Thus, both governments agree that efforts to promote the use of renewable
energies, such as geothermal energy, within the framework of the two countries'
development cooperation need to be combined with continuous improvement of the
overall framework conditions for broader application of renewable energy
technologies in Indonesia. In this respect the German government welcomed
Indonesia's envisaged fiscal incentives to attract more private investors to the
Indonesian market, especially for the renewable energy sector.
Sustainable Urban Transport Improvement Project
The project offers advice to the Ministry of Transportation and selected Indonesian
cities on measures for the planning and implementation of an environmentally-
friendly, energy-efficient and climate-friendly transport system. The main focus has
so far been centered on advisory services for the development of the "National
policy on sustainable Urban MobHity" as well as on support for partner cities in their
efforts to implement sustainable modes of transport and to improve urban mobility.
The project will now move on to support the refinement of the policy at national level
as well as the implementation of public transport and non-motorized mobility at the
city level. The implementation of this commitment is subject to the solving of the
pending issues (the signing of the implementation agreement).
1
'To phase out and rationalize over the medium term inefficient fossil fuel subsidies while providing targeted
support for the poorest. Inefficient fossil fuel subs"ld"1es encourage wasteful consumption, reduce our energy
security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate
change."
Page 12 of 27
"h1
Forests and climate change
Commitment: up to €7,000,000.00
The Technical Cooperation program module is an integral part of the overall Forests
and Climate Change program. It offers policy advice, strategy development and
implementation in the areas of forests and climate change. It also supports the
development of innovative instruments and mechanisms for the reduction of
greenhouse gas emissions from deforestation and forest degratation plus
sustainable forest management, conservation and increase of carbon stocks
(REDO+), the implementation of those instruments in selected districts of
Kalimantan and the input of the results into the national, regional and international
discussion on forests and climate change. Furthermore, it supports environmental
conservation protection and sustainable development in areas with high biodiversity
in the Heart of Borneo.
The new commitment will be used in a new project phase to give support in the
following areas: monitoring and evaluation of the strategic sector plan 2010 - 2014
and the priority programs contained therein; further support for the implementation
of forestry administrative reform, especially with regard to the operationalization of
the Forest Management Unit (FMU) approach concept is planned to provide this in
partnership with relevant German institutions. Capacity development will be a new
cross-cutting component. The Indonesian side expressed particular interest in
strengthening the vocational education and training in forestry ..
Policy Advice in Environment and Climate Change
Commitment: up to €7,500,000.00
The program module continues to provide policy advice to Indonesian authorities,

cities and private businesses in areas of strategic relevance in overcoming
environmental and climate change challenges by effectively reducing greenhouse
gases (GHG) and assessing vulnerability to climate change. The module also
places a strong focus on the rehabilitation of biodiversity in urban areas and around
cities. The new commitment of up to €4,500,000 will be used to continue this work
in a new project phase.
Additionally, the current program will provide support to the younger generation with
a new component "Climate Change in Education", using the new commitment of
€3,000,000. Children and teenagers in particular tend to be very open to
environmental topics, a good starting point for raising awareness of climate change
Page 13 of 27
issues. Furthermore, using the knowledge they have gained, students can act as
multipliers for the issue in their families and communities. Therefore, it is planned to
integrate climate change topics into the curricula and teaching of local schools and
professional training for teachers. To ensure synergies, close cooperation with the
Technical and Vocational Education and Training program will be an integral
part of this component.
It should be noted that GIZ is implementing this component in close cooperation

with the Hanns Seidel Foundation.
For Climate Change in Education, the Executing Agency is the Ministry of

Environment and the Implementing Agency is the Ministry of Education and Culture.
Both parties agreed that the future processing and implementation of the new
allocations for the Geothermal Energy Program and the Emission Reduction in
Cities - Solid Waste Management Program are, on the Indonesian side, subject to
the inclusion of these activities in the "Blue Book" and a positive decision on these
activities by the Government of the Republic of Indonesia.
Geothermal Program
Total funds: up to €85,000,000.00 (development loan)
The Geothermal Program aims to support the lndones"1an strategy for rapid
extension of the national energy supply from renewable resources. This is crucial in
reducing emissions while maintaining economic growth. The program started in
2010 with total funding of €21 0 million. This first commitment is to be invested in the
project sites at Kotamobagu (Sulawesi) and Seulawah Agam (Sumatra/Aceh). In
order to ensure full financing of these two sites., an additional commitment for this
program was agreed upon, thus increasing the total program allocation to up to
€295 million.
This commitment is conditional on the approval of the German Federal Ministry of

Finance.
Page 14 of 27
Emission Reduction in Cities- Solid Waste Management
Total funds: up to €50,000,000.00 (development loan)
Cities both contribute to and are affected by climate change. The program, which
began in 2010 with an allocation of €25 million, seeks to finance investments in
Indonesian cities that help mitigate greenhouse gas emissions specifically in the
solid waste management sector. This second tranche is allocated to ensure full
financing for this already agreed-upon program. The Swiss State Secretariat for
Economic Affairs (SECO) will support the program with a grant of up to €7.6 million
for accompanying measures as well as a grant of up to CHF 1.275 million for a
complementary organic waste analysis and treatment component which will be
carried out by the Swiss Federal Institute of Aquatic Science and Technology
(EAWAG). SECO's commitment is conditional upon the approval of the Swiss
Federal Council, which is expected in October 2011. The experiences gained could
be replicated in other cities not covered by this program.

Finance.
Forests and Climate Change (Forest Program II- REDD+)
The protection of tropical forests as a means of sustaining biodiversity as well as

reducing the impact of CO, emissions has a high priority for the German
government. It was agreed to provide a new commitment for the second phase of
the REDO+ (Reducing Emissions from Deforestation and Forest Degradation plus)
Forest Program. As proposed by the Indonesian partner side and in accordance
with national priorities, the main focus will be on the rehabilitation of special
watershed areas and biodiversity conservation in order to support the national
strategies regarding REDO+, watershed management and biodiversity
conservation.
The German side emphasized that biodiversity conservation is seen as a cross-

cutting issue in this program.
Both sides agreed to focus the implementation of this new commitment on

Kalimantan and Sumatra. The German side took note of the high importance of
conservation and protected forests in Sulawesi for the Indonesian side. Therefore,
Page 15 of 27
as part of the on-going studies, a fact finding mission regarding the potential for
future activities on Sulawesi in these fields shall be carried out.

Finance.
2.4.3.2. Ongoing cooperation
Exploration of Geothermal Resources (Seulawah Agam Geothermal Energy

Project)
Project no. 200866871 and A+F measure, €7.72 million
The German government has provided grant funds totaling €7. 72 million for partial
financing for the explorat'1on phase of the Seulawah Agam Geothermal Energy
Project, including the services of a Transaction Advisor. The German government
acknowledged the efforts that have been undertaken to facilitate the implementation
of the project. The Seulawah Agam Geothermal Power Project is widely considered
an important pilot project since it is designed to be the first Public-Private
Partnership in the geothermal energy sector. Hence, a further delay would be a
serious setback to the promotion of private sector involvement in reaching
Indonesia's policy goals. Both sides agreed that all administrative obstacles shall
be resolved as soon as possible so that the grant funds can be disbursed in
accordance with the project design agreed upon.
2.4.4. Activities of the German Federal Ministry for the Environment, Nature
Conservation and Nuclear Safety (BMU)
The Indonesian side expressed their interest in further cooperation with Germany in
the context of the Indonesian Climate Change Trust Fund (ICCTF). In that context
they submitted a proposal "Strategic Partnership for Supported NAMAS and
Climate Finance". The German side expressed their interest in and took note of this
proposal.
2.4.4.1. Ongoing projects and 2011 commitments under funding lines of the BMU
With reference to section 1.2.4 of the Summary Record of the German-Indonesian

Governmental Consultations, 24 November 2010, where the willingness of both
Page 16 of 27
parties to further cooperate in this context was underlined, the representative of the
German Federal Ministry for the Environment, Nature Conservation and Nuclear
Safety (BMU) informed the Indonesian side about the progress of ongoing projects
already being funded under the German International Climate Initiative (ICI).
2.4.4.2. In 2011, the German government is willing to commit the following proposed
projects under the ICI:
Project title: Promotion of Least Cost Renewable Energy in Indonesia
The project supports Indonesia in the planning and implementation of renewable

energy programs that have the best cost-benefit ratio in terms of energy generation
and avoidance of greenhouse gases. In this way, it will help the country to achieve
both its economic goals and its goals related to the climate. The newly created
Directorate-General for New and Renewable Energy and Energy Conservation is to
be supported in developing economically viable solutions with the private sector and
testing methods of substituting fossil fuels. This will then be used as the basis for
developing practical proposals for implementation, guidelines and support programs
so as to harness the economic potential of renewable energies. The project
involves substituting expensive electricity generation using diesel generators, using
biomass waste from agroindustry and creating better feed-in conditions.
The use of biomass waste from agroindustry and the establishment of small stand-
alone networks will require innovative approaches. Since Indonesia is by far the
largest member of ASEAN, the project will be particularly important in terms of
sending a signal.
The Indonesian side proposed the involvement of the Ministry of Forestry in this
project considering that they have several renewable energy related projects in the
Forestry sector such as the use of sawmill residue and timber and non-timber
plantation such as ca/ophylum inophylum.
Volume: up to €3 million
Duration: (originally planned for) Oct. 2011- Sept. 2014
Partner institutions: Directorate General for New and Renewable Energy and
Energy Conservation (NREEC)
Page 17 of 27
Project title: V-NAMA - Vertically Integrated NAMAs to Involve Sub-national
Actors in National Mitigation Strategies
The aim of the project is to develop a practicable strategy for vertically integrated
NAMAs (v-NAMAs). With this aim in mind, the v-NAMA approach ·Is to be piloted in
two countries and sectors (waste sector in Indonesia, buildings in South Africa) and,
using the experience gained, fleshed out in such a way that it can be adopted by
other countries and made a component of international climate financing. The
result will be a frame of reference with specific recommendations for action and
guidelines on designing v-NAMAs that can be measured, reported and verified
(MRVed) and also financed. At the same time, expert workshops and dialogue
events will be used to ensure that the proposals developed through the project can
be discussed and disseminated internationally.
In this way, the project will support international efforts to design the NAMA
mechanism in such a way that it can also be used more strongly to use the
mitigation potential in areas that fall within the responsibility of sub-national
authorities.
Volume: up to €2.8 million for Indonesia and South Africa (it is not possible to
specify the project budget amount per country.)
Duration: (originally planned for) Sept. 2011 -August 2014
Partner institutions: for Indonesia Ministry for National Development Planning

(BAPPENAS) (plus partners in South Africa - Department of Environmental Affairs,
DEA)
Project title: Low-Emission Palm Oil Enterprise Development in Berau

District, East Kalimantan, Indonesia
Palm oil is an important element of the development strategy in Indonesia as the

largest producer of palm oil worldwide. The project will bring government, industry
and civil society together to plan and pilot low-emission oil palm development. The
project goal will be to avoid over 10 million tonnes of carbon emissions over ten
years, including 2 million tonnes during the project period, through conservation of
at least 20,000 ha of forested areas currently designated for land-use conversion to
oil palm plantation; and through best practice in oil palm enterprise development
and management.
Page 18 of 27
The planned plantation development could thus be redirected from good quality
natural forest to already deforested and degraded forest lands, as well as
implementing low-emission production management practices. This allow
development of oil palm plantation for sustainable economic growth whilst also
capturing carbon and generating environmental benefits by retaining and
sustainably managing remaining forest.
Volume: up to €2.5 million
Duration: (originally planned for) June 2011 -Dec. 2015
Partner institutions: Ministry of Forestry, Directorate General of Forest Protection

and Nature Conservation; District Government of Berau.
2.4.4.3. Commitments in the field of biodiversity in 2011
In addition, the German government is willing to commit up to €22.2 million for the
following proposed activities of bilateral cooperation (including one trinational
proposal) in the field of biodiversity:
• Biodiversity conservation and climate protection in the Leuser Ecosystem

Volume: up to €8.5 million, planned duration 2013-2017)
• Biodiversity and climate change

Volume: up to €3.8 million, planned duration 2012-2017
• Developing a resilient and effectively managed network of Marine Protected

Areas in the Lesser Sunda Ecoregion
Volume: up to €2.9 million, planned duration 2012-2017
• Implementation of the trilateral action plans for the Sulu-Sulawesi Marine

Ecoregion (trinational: Indonesia/Malaysia/Philippines)
Volume: up to €7 million for activities in all three countries combined,
duration planned 2012-2017
Representatives of the BMU explained the special procedures involved in the

special EKF funds. Details of these planned activities in the field of biodiversity are
attached as Annex 6.
Page 19 of 27
114
The Indonesian side welcomed and confirmed all the above mentioned projects
from BMU. For all these to ensure a smooth implementation both sides agreed to
discuss the necessary implementation agreement. In addition and to ensure
ownership of these projects, both sides confirm that it is important to include
Indonesian institutions from the very beginning i.e the planning phase. To achive
those target both side agreed to have further discussion.
2.5. Cooperation outside the priority areas
Social Protection Program
The project aims to improve the framework conditions for the implementation of an
integrated Social Protection System. The cooperation shall be extended and
consolidated in the following intervention areas: (1) Advisory and capacity building
for BAPPENAS in social protection policy development; (2) Advisory services &
facilitation of knowledge exchange for BAPPENAS, the Council of National Social
Security, the Secretariat of the National Team for the Acceleration of Poverty
Reduction under the Office of the Vice President and other ministries and
stakeholders relevant to the implementation of Law No. 40/2004, particularly
through the Road Map for Universal Coverage on Health Insurance, which details
steps to cover the entire population, including informal workers, vulnerable groups
and the poor; (3) Capacity building and technical support for the National Social
Security Council to implement the National Social Security System (SJSN); (4) A
consulting team to help improve the operation of the CCT program (Program
Ke!uarga Harapan!PKH) implemented by the Ministry of Social Affairs; and (5)
Advisory services for Bappenas and the Ministry of Social Affairs on the design and
implementation of social services for people with disabilities and the elderly.
Note: The funding for the following project was discussed during the government
consultations in Jakarta on 7 April 2011. The funding has already been assured by
a note verbale following those talks (Note Verbale No. 245 /2011 dated
05.05.2011).
Page 20 of 27
l\4
Study and Expert Fund
The Study and Expert Fund (SFF) will provide financial support for the planning of
technical cooperation measures, offer urgent short-term financial support for
running projects and provide financial support for various other Technical
Cooperation measures with a low financial volume.
2.5.2.1. Ongoing Cooperation
Reconstruction of Provincial Hospital Banda Aceh
Project no. 200565044 and Sustainability Phase, €31.85 million
Both sides agreed that a twinning arrangement between the Provincial Hospital
Banda Aceh and - should a suitable partner be found - a German hospital could
help to reinforce the positive outcomes achieved during the investment phase (full
reconstruction and equipment of the new hospital) as well as during the ongoing
sustainability phase (support for hospital management in improving operation of the
hospital). The agreed-upon activities will be completed as planned but the German
side offered to support the establishment of a twinning arrangement until the end of
2012.
Improvement of Health Care Delivery System in Nusa Tenggara Timur
Project no. 199865049 and A+F measure, €11 ,543,904.63
Referring to the agreement reached during the Goverment to Government

negotiation 2010 the German side took note of the step already taken by the
Indonesian side to reach a solution.
The Ministry of Health remains committed to resolve the issue of remaining

payments of consultant services for this project.
Page 21 of 27
2.6. Development cooperation actors: merger of GTZ, OED and lnWent
Since 1 January 2011, GIZ has brought together under one roof the capacities and
long-standing experience of three organizations: the Deutscher Entwicklungsdienst
(OED) gGmbH (German Development Service), the Deutsche Gesellschaft fUr
Technische Zusammenarbeit (GTZ) GmbH (German technical cooperation) and
lnWEnt - Capacity Building International, Germany under the legal framework of
the former GTZ.
Ongoing and future project activities of the former DED and former lnWEnt will be
included in the ongoing TC Programs/Modules of the former GTZ with a total sum of
€2.855.165. Please refer to Annex 7 for further details.
3. Other instruments and contributions available as part of

German development cooperation
3.1. KfW promotional loans
During the government consultations in April 2011 it was agreed that Energy
Efficiency Programs should also be supported through promotional loans or private
sector financing. Therefore, a feasibility study for the rehabilitation of the thermal
power plant Belawan/Sumatra is under preparation. It is intended that the
investment will be funded by a promotional loan. This project should be used as an
example of how to improve the efficiency of energy generation.
In June 2010 KfW invested the equivalent of €3 million as an FC promotional equity

participation in Bank Andara. Bank Andara was established in 2008 by Mercy
Corps. It functions as an apex bank and offers financial services and IT solutions to
the Indonesian microfinance sector.
As a way of complementing the existing set of financing instruments used in

Financial Cooperation, mentioned above, KfW may conduct, on behalf of the BMZ,
other projects/programs that merit support from a development point of view. These
are conducted by KfW in its own name, on its own account and at its own risk, using
KfW funding. Given the nature of the projects/programs to be financed, Indonesia
acknowledges the need to make available at the appropriate time sufficient
amounts of freely convertible currency to fully service the debt towards KfW
(transfer of foreign exchange) and will make all efforts to comply with this obligation
promptly at all times. In this matter, Indonesia assures KfW that it will put it on a
footing at least equal to the multilateral financing institutions.
Page 22 of 27
3.2. BMZ support for sustainable urban development and infrastructure
within the Cities Development Initiative for Asia (COlA)
The Cities Development Initiative for Asia (CDIA) is a regional initiative established
in 2007 by the Government of Germany (BMZ) and the Asian Development Bank -
with additional support from the governments of Sweden and Austria and the
Shanghai Municipal Government. The Initiative provides assistance to medium-
sized Asian cities in bridging the gap between their development plans and the
implementation of their infrastructure investments.
The long-term aim of the initiative is to contribute to the promotion of sustainable

and pro-poor urban development, leading to improved environmental and living
conditions for all in Asian cities. CDIA uses a demand-driven approach and
emphasizes the development principles of environmental sustainability, pro-poor
development, good governance, and climate change adaptation/mitigation.
In Indonesia, CDIA is active in Banda Aceh (urban renewal), Palembang (urban

transport), Solo/Surakarta (urban transport), Yogyakarta (urban transport) and has
completed pre-feasibility studies (PFS) for infrastructure investments in all cases.
CDIA cooperates with BAPPENAS, with which it is about to sign an MoU. In

addition, CDIA works with the Indonesian Partner Organizations YIPD (Yayasan
lnovasi Pemerintahan Daerah) and URDI (Urban and Regional Development
Institute).
3.3. Meeting of the Judicial Integrity Group (JIG)
Both sides welcome the invitation issued by the Indonesian Supreme Court to the
Judicial Integrity Group (JIG), a loose association of high-ranking judges from
OECD and developing countries, to hold its 8th meeting and subsequent workshop
from 25 to 29 January 2012 in Jakarta. The aim of the workshop is to disseminate
the Bangalore Principles of Judicial Conduct amongst the judges and court
employees of the ASEAN region and to highlight Indonesia's own experience in
integrity-based judicial reforms. The BMZ, together with UNODC, is financing and
organizing the workshop as well as the meeting. Indonesia will promote the
workshop among its judicial personnel and provide assistance in the organization of
the workshop.
Page 23 of 27
3.4. Further players
German development cooperation in Indonesia is implemented by the Federal

Institute for Geosciences and Natural Resources (BGR), the GIZ and KNV; other
groups represented are the churches, political foundations (FES, FNS, HSS and
KAS), social institutions (e.g. Kolping International) and other actors (e.g. Doctors
for Developing Countries, SEQUA, SES, DAAD, Deutsche Welle and we/twarts).
Both governments welcome the independent work of the political foundations in the
areas of democracy promotion and development. The German side is very grateful
for the Indonesian government's willingness to provide the political foundations with
the formal prerequisites for their work.
Other actors:
DEG- The German Investment and Development Company (DEG)
The DEG is part of the KNV Bankengruppe. It specializes in long-term project and
corporate financing of private companies in developing and transition countries.
Starting in 1973, Indonesia has been one of the main countries for DEG
investments. To date, DEG has provided total financing of €586 million for
approximately 50 private companies in Indonesia. The present portfolio amounts to
€182 million which is invested in 14 private companies, among others in
infrastructure, the financial sector and the manufacturing industry.
Sparkassenstiftung fi.ir internationale Kooperation (savings bank foundation

for international cooperation- SBFIC)
The BPDs (regional banks) and their association ASBANDA (Association of

Regional Development Banks) provide an infrastructure that can give the general
public access to needs-oriented financial services at provincial level and can be
used as an instrument for economic development.
The German Savings Bank Finance Group uses its own experience of
decentralized organization and association structures to support this development
as part of a consultancy project with the AS BANDA association.
The BPDs' public proprietors must make a major contribution in ensuring that the
BPDs endeavour equally to fulfil the"1r development mandate and ensure their
sustainability by adopting commercially viable business models.
Page 24 of 27 IJJ
~ •r
Senior Experten Service (SES)
SES (Senior Experten Service) seconds highly qualified retired experts on short-
term missions, mainly in the areas of management, vocational and other technical
training but also in many other fields of activity. The target groups are small and
medium enterprises, and institutions.
From 1985 through 201 0, SES carried out a total of 286 assignments in lndones·la.
The SES is prepared to provide more support if required.
4. Other bilateral issues

On a more general note, the German side informed the Indonesian side about the
regular processes of Technical Cooperation projects in terms of progress reporting
and common conducting of standardized M&E procedures. These are formalized in
the implementation agreements between GIZ and the respective Indonesian
implementing agencies. Both sides agreed to improve the exchange of information
on project progress between all stakeholders, including BAPPENAS.
5. Declarations and final clauses

Both sides reiterated that the Indonesian implementing partner and the German
implementing agency agree upon the results of the appraisal mission by Minutes of
Meeting.
5.1. Provisions for project/program implementation

Both delegations agree that all the contributions envisaged by the German side and
recorded in the present document can only be made when
> the Government of the Federal Republic of Germany has taken a positive decision
once project/program appraisals have been carried out by KNV, GIZ and/or any
other organization commissioned with implementing the project or program,
> overall financing for the project/program has been secured,
> the agreements under international law to be concluded (intergovernmental

agreements and project/program agreements), the financing and loan agreements
and the implementation agreements with KNV/GIZ and, if applicable, any other
implementing organizations have entered into force.
Page 25 of 27
1Vt
5.2. Sunset and project/program replacement clause
The German side draws particular attention to the fact that the commitments made
under Financial Cooperation and Technical Cooperation (see cf. 2) ) will lapse if
within eight years of the year in which the commitment was made no
implementation agreement, i.e. in the case of Financial Cooperation a
loan/financing agreement and in the case of Technical Cooperation an
implementation agreement, has been concluded. Thus, commitments made during
the 2011 negotiations are subject to a 31 December 2019 deadline. This sunset
clause does not apply to commitments made under the Special Energy and Climate
Fund. These measures must be fully completed by 31 December 2017. Any unused
funding will lapse.
Should one or more of the projects/programs mentioned not be implemented or only
be partially implemented, it/they may be replaced in mutual agreement between the
two governments by another project/program or projects/programs. The following
programs mentioned under 2.4.3.1 cannot be replaced by others: the Geothermal
Program and the Emission Reduction in Cities - Solid Waste Management
Program.
Projects/programs conducted under the Special Energy and Climate Fund may only
be replaced by projects/programs that contribute to the main aim's of the Fund and
can be realized in accordance with the provisions of the previous paragraph by 31
December 2017.
5.3. Anti-corruption statement
Both delegations agree that their cooperation projects and programs shall be
selected and designed according to development criteria.
The Government of the Federal Republic of Germany and the Government of

Indonesia agree upon the following assessment of the negative effects of
corruption:
:>- It undermines good governance.
> It wastes scarce resources and has a far-reaching negative impact on economic
and social development.
> It undermines the credibility of, and public support for, development cooperation
and compromises the efforts of all those who work to support sustainable
development.
:>- It compromises open and transparent competition on the basis of price and quality.
Page 26 of 27
"h4
Annex 1
Indonesian Government Delegation
Mr. Wismana A. Suryabrata

Deputy Minister for Development Funding Affairs, BAPPENAS
- Head of Delegation -
Mr. Kennedy Simanjuntak

Director for Bilateral Foreign Funding
BAPPENAS
Mr. Heru Subiantoro

Secretary of Directorate General on Financial Balance
Ministry of Finance
Mr. Adi Kresno

Head, Bureau of Planning
Ministry of State Apparatus and Bureaucracy Reform
Mr. Basah Hernowo

Director for Forestry and Natural Resouces Conservation
BAPPENAS
Mr. Nugroho Tri Utomo

Director for Settlement and Housing
BAPPENAS
Mr. Hadiat
Director for Health and Community Nutrition
BAPPENAS
Mr. Agus Sarsito

Head of Bureau for Foreign Cooperation
Ministry of Forestry
Mr. Rasia Ridho Sani

Head of Bureau for Planning and International Cooperation
Ministry of Environment
1
Mr. Hendi Mufti S
Deputy Director
Directorate of External Funds
Ministry of Finance
Mr. Kuncoro Waseso

Deputy Director
Directorate of West Europe
Ministry of Foreign Affairs
Ms Tika Wihanasari
Embassy of Republic of Indonesia in Berlin
I Made Ro Sakya
Deputy Director for Planning and Technology
Directorate for Planning and Technology
PT. PLN (Persero)
Ms. Ria Widati

Deputy Director
Directorate for Bilateral Foreign Funding
BAPPENAS
Mr. Amri K. Sumodiningrat

Staff of Bureau for Foreign Technical Cooperation
Ministry of State Secretariat
2
Annex 2
German Government Delegation

H. E. Dr. Norbert Baas
Ambassador Extraordinary and Plenipotentiary of the
Federal Republic of Germany to the
Republic of Indonesia
Ms Brunhilde Vest
Head of Division for Regional Development Policy South-East Asia
Federal Ministry for Economic Cooperation and Development, Bonn
- Head of Delegation -
Ms Katja Hummel
Desk Officer for Indonesia
Division for Regional Development Policy South-East Asia
Federal Ministry for Economic Cooperation and Development, Bonn
Ms Ursula Mum pro

Deputy Head of Division for Bilateral Cooperation with countries in Latin America, the
Caribbean and Asia at the
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Berlin
Mr. Andreas Beckermann

Counselor and Head of Development Cooperation
Embassy of the Federal Republic of Germany, Jakarta
Mr Joachim Ponath
Second Secretary for Development Cooperation
Mr Frank Denner
Second Secretary for Development Cooperation
Mr Michael Rottmann
Counsellor and Head of Science and Technology
Mrs Birgit Geis

Country Manager for Indonesia
Deutsche Gesellschaft fOr lnternationale Zusammenarbeit (GIZ), Eschborn
1
Mr Ulrich Mohr
Country Director
Deutsche Gesellschaft fUr lnternationale Zusammenarbeit (GIZ), Jakarta
Mr. Martin Dorschel

Director East and South East Asia
Ktw Development Bank, Frankfurt
Mr. Bjorn Thies

Country Director Ktw Office Jakarta
Ktw Development Bank
Mr. Dr. Matthias Darn

Project Team Leader
Federal Institute for Biosciences and Natural Resources (BGR), Bandung
Mr. Ralf Sanftenberg

Deputy Country Director
GIZ Jakarta
Mrs Kerstin Nagels

German Development Cooperation Jakarta
Priority Area Coordinator ,Private Sector Development"
Mr Dr. Dieter Brulez

Priority Area Coordinator "Climate Change"
Mr Joerg- Werner Haas

Priority Area Coordinator "Support for Decentralization Policy as a Contribution to
Poverty Eradication"
2
Annex 3
Opening Remarks
By
Wismana Adi Suryabrata
Deputy Minister/Chairman for Development Funding, Bappenas
at the Indonesian-German Government Negotiations on Development Cooperation
Jakarta, 20 October 2011
His Excellency Ambassador Dr. Norbert Baas,

Distinguished Delegates,
Ladies and Gentlemen,
On behalf of the Government of Indonesia, allow me to welcome the distinguished members of the
German Government Delegation to Indonesia and to this Bilateral Negotiations. In particular, I am
pleased to extend my warmest welcome to His Excellency Ambassador Dr. Norbert Baas and the
Head of the Southeast Asia Division, BMZ, Mrs. Brunhilde Vest.
It is an honor to have you all here to exchange views and ideas in various topics of our development
cooperation which inevitably deepens our mutual understanding and strengthening the already close
relations between Germany and Indonesia.
In this occasion, on behalf of the Government of Indonesia, I would like to express our sincere
gratitude and appreciation to the German Government for supporting and assisting Indonesia's
development through various channels of development cooperation schemes.
His Excellency,
Since our consultation meeting in last April, there has been new development in regard to external
borrowing policy, particularly as the impact of the current global economic situation. Our government
acknowledges the important role of foreign assistance in helping us to finance our development
programs. The other benefit of foreign assistance is transfer of knowledge through the collaboration
between stakeholders which in turn we may replicate those with our own resources as good as with
support from our development partners. However, the current world economic has highlighted the
urgency to revise some of our policy. For example, our Government has the intention to implement a
more prudent macro-economic policy by lowering the deficit target and focusing our attention on
improving the quality of spending, including spending financed by the foreign assistance. One of
implications of the lower budget deficit target is the reduction of the amount of foreign loans
borrowing. In addition, in the near future foreign loans will be targeted mainly to finance the
infrastructure and energy sectors.
In regard to our efforts to improve the quality of spending, currently we are developing a performance
contract for foreign loan to monitor the performance of ministries which are executing foreign loans
funded projects. This performance report will be used among others as one of criteria in deciding the
eligibility of ministries in obtaining foreign loans support.
In term of loan and grant procedure, I would like to update you with the new government regulation
that we have since our negotiation last year. Our Government has issued the Government Regulation
No.1 0 of 2011. This regulation is designed to revise the Government Regulation No.2 of 2006, with
intention to improve efficiency and effectiveness in external financing, to define more clearly
procedure for external assistance and to optimize the benefit· from all possible external financing
resources.
Basically, there are some similarities between these two regulations when dealing with the procedure
of the submission of loan project proposals. Like the Government Regulation No. 2 of 2006, the new
regulation states that the proposals shall be submitted by ministries/institutions and State Owned
Companies to the Minister of Planning by complying with RJPM and taking into account the External
Debt Utilization Plan. The proposal shall include the activities of which the financing will be on
granting to the Regional Government. In case the Ministry/Institution will propose the external debt for
state's capital absorption, the proposal shall be submitted through the Ministry of Finance. The
Regional Government shall submit the proposal of activity that can be financed from External Debt to
the Minister of Planning by complying with Regional Medium Term, Development Plan and by taking
into account the External Debt Utilization Plan.
However, in contrast to Government Regulation No. 2 of 2006, the new regulation stipulates the
different procedure for external debt and grants. The new regulation says that external debt projects
will be listed twice, on medium term list and annual list, meanwhile grant projects is listed once a year,
without medium term list.
Apart from that, there is also a change in the term of readiness criteria. We acknowledge that the
previous regulation rigidly set readiness criteria which resulted in the unforeseen difficulties in the
implementation process. Having understood this situation, we set a readiness criterion which is more
flexible and it is promulgated by a Minister Regulation.
In addition, we would like to emphasize about the readiness criteria of the proposed projects. Line
ministries, local governments and State Owned companies are requested to increase the
preparedness of projects that have been listed on Blue Book, in line with the readiness criteria which
consist of:
• Implementation plan
• Indicators of monitoring and evaluation performances
• Organisation and management of project implementation
• Land acquisition or resettlement plan for projects required land acquisition process.
2
In line with our effort to enhance the quality of spending, we hope that we could together enhance the
preparedness of the proposed projects in order to smooth implementation.
His Excellency,
In the case of the negotiation process for grant projects, I would like to elaborate that we divide grant
into two kinds: Planned Grant and Direct Grant. The planned grant means that the Grant is carried
out through a planning mechanism, whereas the direct grant is not carried out through the planning
mechanism. The negotiation of planned grant shall be conducted by the Minister of Finance or his
authorized official. Therefore, the grant agreement shall be signed by the Minister of Finance of his
authorized official. Meanwhile, the negotiation of direct grant shall be carried out by the line
Minister/Head of Institution or his authorized official. As a consequence of it, the the Minister/Head of
Institution or authorized official can sign the Grant Agreement.
His Excellency,
Let me move to our agenda today. In this meeting, we have several issues to be discussed. Our main
agenda is to discuss our development cooperation. In the first session, we are going to discuss the
general context for development cooperation, confirmation about priority areas and its flexibility,
commitment and reprogrammed funds. In the next session, we will discuss the projects under
financial and technical cooperation scheme according to their priority areas which are good
governance/decentralization, private sector development, and climate change. Later on, we also will
address our cooperation outside the priority areas as well as issues on debt swap.
In the next session, we will give an opportunity to the German delegation to elaborate about the
activities of the German Federal Ministry for Education and Research. After that is the time to discuss
any other business. In this session we will explore the possibilities of trilateral cooperation and define
any kind of ways that both government can do to increase the benefit of our development cooperation
in the future. Following that, we will discuss about the possibilities of the next bilateral negotiations.
Our negotiation meeting will be ended by the conclusion session.
Finally, I would like to conclude my remarks by expressing our gratitude once again to the
Government of Germany and our sincere hope that we will do our utmost to mutual benefit of the
cooperation between Germany and Indonesia. We also expect that th'1s negotiation meeting will
contribute constructively to the dialog for the mutual benefit of our countries.
Thank you.
3
Annex 4
German -Indonesian Development Cooperation

Government to Government Negotiations
Opening Statement
Ambassador Dr. Norbert Baas
Jakarta, 20'" October 2011
Dear Deputy Minister Pak Wisman a,

Dear Ms Vest,
Dear Indonesian and German delegations,
Thank you for the invitation to attend this meeting.
This year we have been witnessing a considerable number of official exchanges between
our two countries. Today's negotiations are based on the Consultations we had in April.
Since, we had two delegations from the German Bundestag. In August, the chairperson of its
Committee for Economic Cooperation and Development, Mrs. Wohrl, and her delegation met
with H.E. Minister Mrs. Prof. Armida Alishabana for an update on the cooperation. The
delegation were informed by H.E. Minister for Energy and Mineral Resources, Mr. Dawin
Zahedy Saleh, when he presented the ambitious plan to increase the usage of renewable
energy to 25 % in 2020. He sees Germany as an important partner in this endeavor.
In the presence of the delegation, H.E. Minister Freddy Numberi, the delegation and myself
inaugurated a new train for the Jabotabek region. It was developed in an Indonesian -
German consortium and will help to improve urban transport with a lower impact on the
environment than cars and bikes have.
Dear Deputy Minister Wismana, on October 41", we opened the exhibition on our
development cooperation here in Jakarta. A series of events we call Jerman dan Indonesia,
JERIN, will highlight our cultural, scientific and economic relations. The exhibition which was
largely prepared by GIZ will travel to Yogyakarta, Makassar, Balikpapan, Aceh, Bandung
and other cities. This is done to draw attention to the presence of our programs in several
provinces of the archipelago.
Ten days ago, BAPPENAS and GIZ organized an important international conference.
Delegates from Germany, from a number of mostly Asian countries met with a high-ranking
1
panel from BAPPENAS, including Vice Minister Pak Lukita and deputy ministers, officials
from other ministries, researchers and civil society organizations on the topic of "Quality of
Growth for Quality of Life". Your government spelled out the dimensions of Indonesia's
development: Pro Growth, Pro Jobs, Pro Poor and Pro Environment. It was a lively
exchange with German and other international actors for an Indonesian "compass" for
sustainable and equitable development.
Many international observers, including Europeans, look with admiration at Indonesia with its
strong growth, record low public foreign debt and macro-economic stability. The passing
year has shown your dedicated chairmanship for integration of the South-East-Asian
countries. A common market seems to be within reach by 2015 and Europe is interested to
remain one of ASEAN's important trading and investment partners.
Today, the two delegations come together to agree upon a continuation of development
cooperation. The topics of inclusive growth will be taken up with regional economic
development. Our two countries have common goals to reduce carbon emissions by 2020 in
a considerable way. Programmes have been prepared contributing to a low carbon economy
which at the same time preserves the riches of Indonesia's unique bio-diversity.
Ladies and gentlemen, I am hopeful that we can pursue our cooperation and build on the
precious spirit of mutual understanding. I trust that agreed projects such as in the maritime
sector will be implemented. As outlined in the masterplan for connectivity, improving
transport facilities is to advance the well-being of the people of Indonesia, above all with
regard to its Eastern part. Our participation in that is a prviliege and great asset in German-
Indonesian relations: future-oriented, helping to bridge the gaps between some parts of
Indonesia and giving incentives to growth.
Germany as a trade and investment partner of Indonesia remains highly interested in

contributing to infrastructure development. Public private partnerships are one of the ways to
enable the private engagement, especially in infrastructure.
With this, I wish your deliberations all success and I thank you very much for your attention.
2
Annex 5
Opening Remarks
Ms Brunhilde Vest
Head of the German Delegation 2011
Indonesian-German Governmental Negotiations
on Development Cooperation
Jakarta, 20 October 2011
Your Excellency Pak Wismana A. Suryabrata,
Your Excellencies Members of the Government and other State Institutions of Indonesia,
Distinguished Colleagues,
Let me first express my gratitude for the warm welcome you have extended to me and my
delegation. It is, as in previous years, a pleasure for us to visit your amazing country. We are
particularly grateful that we were able to find a suitable date for our Governmental
Negotiations that accommodated the interests and the time constraints of both sides.
We are here today to continue our strategic dialogue on development cooperation between
our two countries in order to chart our course for the years to come. I would like to
emphasize that this dialogue has been characterized by trust and exceptional commitment
on both sides and we are looking forward to resuming the fruitful and in- depth discussions
with you today.
Indonesia has been, and continues to be, an important partner for the international
community and for Germany. The wealth of our shared bilateral interests and experience is
also reflected in the impressive range of events organized as part of JERIN. We are
delighted that German development cooperation is represented with an exhibition illustrating
the themes of that cooperation in Indonesia, being staged in 8 cities across your country. I
do hope very much that this exhibition, which was opened to the public on 4 October and will
be travelling until February 2012, will stimulate a lively dialogue with different groups of
people and make our commitments more tangible.
1
And Indonesia will play an ever more important role in our relations with South-East Asia as
we recognize Indonesia's growing power as an emerging economy, the world's largest
Muslim-majority nation and the only South-East Asian nation in the G-20. This is also
reflected by the fact that Indonesia is chairing ASEAN in 2011, providing it with the chance to
bolster its diplomatic achievements and its standing in South-East Asia.
Also, Indonesia's near-term economic momentum remains positive, with economic growth
exceeding expectations and a positive forecast of 6.4 per cent GOP growth in 2011.
Acknowledging these developments, the BMZ is currently reviewing its strategy with regard
to emerging economies such as Indonesia that help shape global processes within the G-20.
The BMZ is convinced that finding answers to key issues such as global environmental
protection and climate change mitigation, peace and security, and the elimination of extreme
poverty worldwide can only be achieved with these global partners.
Together with the promotion of sustainable and green economic development and the
dialogue on global development agendas, mitigating climate change and environmental
protection have emerged as important issues in future cooperation with these countries.
I think that we are well equipped to address these issues within the framework of the three
existing priority areas of bilateral German-Indonesian development cooperation.
As it is important to highlight and strengthen your country's vast political and economic
potential, we would therefore like to offer our support for Indonesia's plans to build its own
role as a donor country in the region.
For a number of years, Indonesia itself has placed increasing emphasis on, and is known as
a promoter of, South-South cooperation and knowledge transfer across South-East Asia. We
are convinced that numerous countries in the region could profit from Indonesia's vast
experience. It would therefore be of mutual interest to look into trilateral cooperation and to
explore options that could add value to our bilateral development cooperation.
To name just one option, vocational training could be taken up as a thematic area in which
Indonesia and Germany could contribute their knowledge and examples of best practice.
2
ASEAN is aiming to establish a single market by 2015 and shared standards for vocational
training across South-East Asia could make an important contribution to this, helping to
facilitate the free flow of goods, services and investment.
Today we would therefore like to enter into a dialogue with you and discuss options for
knowledge-sharing within South-South cooperation, for example in the field of vocational
training, as both countries look back on successful und intensive cooperation in this field. In
this regard it might be worth mentioning that we are currently planning a conference on
vocational training due to take place in Vietnam in October 2012. It might be worth
integrating the regional perspective into this conference and drawing on Indonesia's
expertise. If Indonesia is interested, a second regional conference on vocational training
could be hosted by Indonesia in 2013.
Another important issue that I would like to address is the concept of Corporate Social
Responsibility (CSR). I feel that our cooperation in the field of private sector development
could be deepened if we were to draw more on strategies that incorporate both social and
economic development, arrived at through open, transparent, and participatory processes.
Most of today's challenges can only be solved if the business community, governments and
civil society organizations come together to combine their skills. During our last
governmental consultations in April, I already outlined the important role private sector
investment can play for sustainable development. To minimize harmful outcomes and to
positively contribute to development, many companies are already integrating social and
environmental concerns in their business operations and interactions with their stakeholders.
Building on that process, we would like to discuss with you how instruments of corporate
social responsibility could be better addressed by Indonesian-German development
cooperation programs.
Ladies and gentlemen,
As already mentioned, we would also like to discuss ideas for future cooperation between
Indonesia and Germany today, based on the assumption that the three existing priority areas
of Indonesian-German development cooperation (climate change, good
governance/decentralization and private sector development) are well suited to tackling the
major challenges that lie ahead.
3
First of all, we acknowledge and will continue to support the efforts of the government of
Indonesia to implement the reforms needed to successfully address these major challenges.
We have seen a lot of economic and social progress in Indonesia over the last few years,
many important governmental reforms are underway and quite a number of critical topics
have also been incorporated into our joint programs.
In this regard, I was very pleased to hear that the visit of the KPK delegation to Germany
was a success. We can see that the government of Indonesia is taking the necessary steps
to fight corruption and we are interested in continuing our dialogue on governance issues, as
the KPK will need strong support from all sides.
Furthermore, climate change und environmental protection are areas where we see a lot of
potential for increased cooperation. The importance of close cooperation in these areas is
also underlined by the fact that they have been identified by the BMZ as pillars of the new
strategic partnership with emerging economies like Indonesia I mentioned earlier. This is
why we would like to intensify our dialogue in the coming months and initiate a strategic
discussion on future issues and regions that we should focus on.
To substantiate the priority attached to climate change, the German government is making
available additional funds for international climate protection through the recently created
Special Energy and Climate Fund. This is a separate fund in the Federal Budget, which is
mainly financed from emission trading revenues. These are expected to increase
considerably over the next few years. This innovative source makes Germany well-prepared
to deliver long-term financing. The responsibility for the Fund is shared by BMZ and the
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, the BMU.
The BMU is already using some of the funds available from the Special Energy and Climate
Fund for commitments that we will also be discussing during these governmental
negotiations. I am therefore particularly happy that two colleagues from the BMU have joined
us here today as part of my delegation.
I think that the promotion of the use of renewable energies, such as geothermal energy,
forms an integral part of our two countries' development cooperation. Indonesia has the
world's largest geothermal reserves but less than 4% has been developed. Thus, the
Indonesian-German Geothermal Program is an important step forward, supporting the
Indonesian strategy for a fast extension of the national energy supply from renewable
4
resources. This will be important in maintaining economic growth while also reducing
emissions, as Indonesia committed to do under the UNFCCC (26% by 2020).
Adding to that, we welcome efforts from within the Indonesian government to gain more
fiscal space for long-term investment by reducing short-term energy subsidies step by step.
In this regard, both governments agree that, while support to poor households remains a
priority, a reduction of energy subsidies could encourage energy conservation and
investment in renewable energies.
I am sure that we agree that efforts to promote the use of renewable energies, such as
geothermal energy, within the framework of the two countries' development cooperation
need to be combined with continuous improvement of the overall framework conditions for
broader application of renewable energy technologies in Indonesia. In this respect the
German government welcomes Indonesia's envisaged fiscal incentives to attract more
private investors to the Indonesian market, for example by revising Government Regulation
No. 62/2008 in order to extend tax allowances to the renewable energy sector.
Of equal importance for us is the program that focuses on emissions reduction in cities -
particularly on solid waste management. This will help mitigate greenhouse gas emissions,
specifically in the solid waste management sector, and thereby contribute to the
implementation of the Indonesian National Climate Change Strategy in urban areas.
All this, however, would not be possible without development loans, which still form an
important pillar of Indonesian-German development cooperation. That is why it would be
helpful for us to receive further information about the current borrowing strategy of the
Indonesian Government, especially regarding bilateral development loans.
I am confident that we will continue and even strengthen our excellent cooperation today.
And I am looking forward to our fruitful exchange of ideas, which will give us the chance to
explore the potential and direction of Indonesian-German development cooperation. I am
also sure that these governmental negotiations will, as always, be guided by mutual trust, an
open-minded, friendly atmosphere and the goal of developing and following up on common
ideas.
I am happy to now introduce my delegation.
5
Annex 6
Proposed activities covered by the commitment for biodiversity funding
Biodiversity conservation and climate protection in the Leuser Ecosystem
Project activities are aimed at ensuring sustainable management of the Leuser Ecosystem in
Sumatra in one or two pilot regions in order to reduce deforestation and restore degraded
forests, thus contributing to the conservation of one of the largest carbon sinks in Asia. The
area includes various protected areas that together form the World Heritage Site "Tropical
Rainforest Heritage of Sumatra", which was recently placed on the World Heritage list of
endangered sites. Proposed measures may include improvement of management capacities
in protected areas, demarcation of critical areas, improvement of living conditions for the
local population and implementation of a REDO monitoring system. Target groups will be the
local communities in the pilot areas, as well as the district, provincial and national
governments.
This project meets funding requirements as described in an expression of interest on the

LifeWeb platform for protected areas of the Convention on Biological Diversity (CBD)
(http://www. cbd. int/lifeweb/project.shtml?did=6451 ).
The activities would be carried out by KfW in cooperation with (inter alia): BAPPENAS, the
Ministry of Forestry, BAPPEDA Aceh, BPKEL Aceh (Badan Pengelola Kawasan Ekosistem
Leuser) and Aceh Geospatial Data Centre.
Proposed total budget: €8.5 million
Biodiversity and climate change
Indonesia ranks as one of the "biodiversity hotspots" in the world. Increasing deforestation
and a high rate of forest degradation are leading to a rapid decrease in biodiversity. In
Sumatra and Kalimantan the remaining forest ecosystems, especially peat land forests, that
act as important carbon stores and harbour rich biodiversity, are under threat. The project is
aimed at implementing measures to conserve the biodiversity and the carbon storage
capacity of forest ecosystems in Sumatra and Kalimantan. Participatory management of
protected areas will contribute to the reduction of deforestation and forest degradation and to
adaptation to climate change. A system for monitoring, reporting and verification will be
developed as a contribution to a national MRV system.
1
The activities would be carried out by GIZ in cooperation with (inter alia) the Ministry of
Forestry.
Developing a resilient and effectively managed network of Marine Protected Areas in

the Lesser Sunda Ecoregion
The Lesser Sunda Ecoregion (LSE) stretches from Bali to Timor Leste. It supports diverse
and highly productive habitats. Fish and coral diversity is extremely high.
The Government of Indonesia has established or declared 13 million hectares of MPAs to

date. Over the coming years Indonesia is planning to strengthen the effective management
of these existing MPAs and increase the area covered by MPAs. The province of East Nusa
Tenggara in the Lesser Sundas Eco-region will be one of the first provinces in Indonesia to
develop a comprehensive coastal and marine spatial plan and will serve as a model for other
regions of Indonesia. The project will aim to strengthen the existing MPAs and MPA
networks, identify new areas for MPAs and carry out coastal and marine spatial planning
which aligns with conservation and sustainable use of resources.

(http:l/www.cbd.int/lifeweb/project.shtml?did=4705).
The activities would be carried out by The Nature Conservancy (TNC) in cooperation with
(inter alia) the Ministry for Marine Affairs and Fisheries, East Nusa Tenggara Province
(Department of Fisheries) and further Provincial and District governments of the Lesser
Sunda region.
Implementation of the trilateral Action Plans for the Sulu-Sulawesi Marine Ecoregion
The Sulu-Sulawesi Seas cover about 1 million square kilometres. The area is considered
the global centre of tropical marine diversity, supporting the highest number of species of
coral reef fishes, demersal fishes, turtles, and algae. The mangrove forests, sea grass beds,
coral reefs, ~nd coastal and offshore waters are the most species-rich in the tropics. The
natural resources of these seas provide food and livelihoods for about 40 million people
living along the coastline of Sulu-Sulawesi Marine Eco-region (SSME).
To ensure effective protection and sustainable development of the Sulu-Sulawesi Marine

Eco-region (SSME), the Governments of Indonesia, Malaysia and the Philippines entered
into a Memorandum of Understanding (MOU) on 13 February 2004, dur"1ng the Seventh
2
Conference of the Parties of the Convention on Biological Diversity held in Kuala Lumpur,
Malaysia, and have subsequently developed a set of thematic action plans ("Threatened,
charismatic, and migratory species"; "Marine protected areas and networks"; "Sustainable
fisheries"). This proposed project will support implementation of the action plans in all three
countries involved.

(http://www.cbd.int/lifeweb/project.shtml?did=6200).
The activities would be carried out by GIZ in partnership with Conservation International, in
Indonesia in cooperation with the Ministry of Marine Affairs and Fisheries.
Proposed total budget for all three partner countries: €7 million.
1A
Annex 7
Ongoing and future project activities of former OED and of former lnWEnt will be included in
the ongoing TC Programs/Modules of former GTZ as follows:
Integration of former OED and

Program Project No
In Went (EUR)
Decentralisation as Contribution to Good
2009.2162.7 284.513
Governance (DecGG)
Strengthening Women's Rights (SWR) 2007.2136.5 212.179
Forests and Climate Change Program
2007.2135.7 1.586.913
(FORCLIME)
Policy Advice for Environment and
2007.2134.0 115.734
Climate Change (PAKLIM)
Regional Economic Qevelopment (RED) 2007.2069.8 294.157
Sustainable Economic Development
through Technical and Vocational 2007.2133.2 361.669
Education and Training (TVET)
Total sum 2.855.165
1
Annex 8
List of BMZ Projects
BMZ project/programme FC BMZ project New commitment Reprogr Total Replenish Continuation FC Debt
I number € ammed ment Yes/no instrument' Swap
TC funds Yes/no
€
:· Pri()rity area A(C>ood . · ..... ··.... ; ·· ... · ..... . .·:·:
I> . . .
. ; .
.
; .·.··
Governal)cer I' ••••••

·.·•.·.....·.•
... -
- ' ,'•
Decentralization) :·. .. .. ·.. . I< :

"'-
··.
·. . . ··.. ·.
Strengthening Women's TC 1068, up to 0€ up to Yes No
Rights 2007.2136.5 1.500.000,00 € 1.500.000,00 €
(Starkung von Frauenrechten)
Decentralization as TC 1070, up to 0€ up to Yes No

Contribution to Good 2009.2162.7 2.000.000,00 € 2.000.000,00 €
Governance
(Forderung der
Dezentralisierungspolitik als
Beitrag zur Guten
RegierungsfOhrunq)
Support for the Improvement TC 1449, up to 0€ up to Yes No
of the Indonesian Population 2008.2096.9 500.000,00 € 500.000,00 €
Administration System
(Schaffung von
Rechtssicherheit und
Gleichbehandlung im
Einwohnerwesen)
1
I number € ammed ment Yes/no instrument" Swap
TC funds Yes/no
€
Assistance in Preventing and TC 1450, up to 0€ up to Yes No
Combating Corruption 2005.2201.1 1.500.000,00 € 1.500.000,00 €
(Vorbeugung und Bekampfung
von Korruption)
Sub-total TC up to 0€ 5.500.000,00 €
5.500.000,00 €
Teilsumme 1 FZ und TZ up to 0€ 5.500.000,00 €
5.500.000,00 €
-Prio(ity area B (PrivatE! Sector
Qei(elopirieritk ·- • --·- -
< --
--.-_- ___ - - -__ ( :: I· --- - - --- - ',
-
-
_-
-- -
--
_- >
--- __
I_
--
.·>- ------•
--- ---_- -
-._-
--
- ------ .. -- -
-._- ·--····-·
Debt Swap VII: 0€ 0€ 0 € Debt
__
FC Schulden-
Scholarship Programme umwandlung/ Swap
Debt Swap Amou
Schuldenumwandlung nt: up
to
Bildungssektor 18,76
Stipendienprogramm 8,936.
(Debt Swap VI ll 24
EUR
Cash
paym
ents
into
progra
m
activiti
es:
9,384,
468.1
2 EUR
Sub-total FC 0€ 0€ 0€
2
I number € ammed ment Yes/no instrumenf Swap
TC funds Yes/no
€
Regional Economic TC 1066, up to 0€ up to Yes No
Development Programme 2007.2069.8 3.250.000,00 € 3.250.000,00 €
(Programm lokale und
regionale
Wirtschaftsentwicklung)
Sustainable Economic TC 1067, up to 0€ up to Yes No
Development through 2007.2133.2 3.000.000,00 € 3.000.000,00 €
Technical and Vocational
Education and Training (SED-
TVET)
(Nachhaltige
Wirtschaftsentwicklung durch
technische und berufliche
Ausbildung sowie Training)
Sub-total TC up to 0€ up to
6.250.000,00 € 6.250.000,00 €
Sub-total 2 (FC plus TC) up to 0€ up to
15.634.468,00 € 15.634.468,00 €
·. ...
. i
..
Priority area C(dJimafe .. · .
·
•: . . .
ChaQge andSu.stainil,ble · .·.····

Development) · ·• . · .
•• • •••
. • I < . •: . .... ... . i. . . . . . . • ...
Geothermal Program FC 1522, up to 0€ up to Yes No Zinsverbilligt
2009.6635.8 85.000.000,00 € 85.000.000,00 € es Darlehen/
(Geothermieprogramm)
Reduced-
interest loan
3
I number € ammed ment Yes/no instrument" Swap
TC funds Yes/no
€
Emission Reduction in Cities FC 1453, up to 0€ up to Yes No Zinsverbilligt
-Solid Waste Management 2010.6647.1 50.000.000,00 € 50.000.000,00 € es Darlehen/
reduced-
(Emissionsminderungsprogram interest loan
min Stadten
(Abfallmanagement))
Forests and Climate Change FC 1455, up to 0€ up to No Yes Zuschuss/

(Forest Program II- REDO+) 2011.6625.5 23.000.000,00 € 23.000.000,00 € grant
(Wald- und Klimaschutz
FZ-Modul: Forstprogramm II
(REDO+))
Sub-total FC up to 0€ up to
158.000.000,00€ 158.000.000,00€
Sustainable Urban Transport TC 1069, up to 0€ up to Yes No
Improvement Project 2008.2148.8 1.500.000,00 € 1.500.000,00 €
{Emissionsminderungen im
stadtischen Verkehrl.
Forests and climate change TC 1451, up to 0€ up to Yes No
2007.2135.7 7.500.000,00 € 7.500.000,00 €
(Wald- und Klimaschutz
(FORCUM E) Gleichnamiges
TZ-Modul)
4
I number € ammed ment Yes/no instrument' Swap
TC funds Yes/no
€
Policy Advise in Environment TC 1452, up to 0€ up to Yes No
and Climate Change 2007.2134.0 7.000.000,00 € 7.000.000,00 €
(Politikberatung im Umwelt- und
Klimaschutz (PAKLIM))
16.000.000,00 € 16.000.000,00 €
174.000.000,00 € 174.000.000,00
€
{;9qperatiol'l C,uti>i.~e the > .• .
. :- '··.. .. ·· .. ·.··. •· ·.·.·•··. .· .. ·· ... . .....
••• II
. . ••••
· priority areas,I
....
•
.·. I.
· G.estaltungs@]E!Jraum I . ·•... ;• .. . . .
.··. . . I • . .
Social Protection Programme TC 1568, · up to 0€ up to Yes No

(Reform des sozialen 2009.2168.4 2.000.000,00 € 2.000.000,00 €
Sicherun>)ssystems)
Study and Expert Fund TC 1065, up to 0€ up to No Yes
(Studien-- und Fachkraftefonds 2011.3507.8 1.000.000,00 € 1.000.000,00 €
)
3.000.000,00 € 3.000.000,00 €
3.000.000,00 € 3.000.000,00 €
Sum total (of sub-totals 1-3) up to 0€ up to

188.750.000 € 188.750.000 €
5
Both governments intend to cooperate closely in order to ensure transparency,
accountability and probity in the use of public resources and eliminate any
opportunities which may exist for corrupt practices in their development
cooperation.
Transparency and accountability are vital to achieving development results and aid
effectiveness as enshrined in international declarations (Paris Declaration, Accra
Agenda for Action). Both delegations therefore agree that information on the agreed
goals, programs, activities and results of development spending and on the
conditions attached to the disbursement of funds may be published by both sides.
6. Next government negotiations
The next negotiations on development cooperation between the Government of the

Republic of Indonesia and the Government of the Federal Republic of Germany are
scheduled to take place in Gerrnany in 2013.
Until then, both sides agree to intensify the dialogue starting with the area of
Climate Change and Sustainable Devevlopment.
Done at Jakarta on 21 October 2011
Mr Wismana A Suryabrata Ms Brunhilde Vest
For the Government of the For the Government of the
Republic of Indonesia Federal Republic of Germany
Page 27 of 27
REPUBLIK INDONESIA
KEMENTERIAN PERENCANAAN PEMBANGUNAN NASIONAL/
BADAN PERENCANAAN PEMBANGUNAN NASIONAL
No. :.3938/D.VIII/06/2013 Jakarta, .£fJune 2013
Mr. Andreas Beckermann

Counsellor and Head of Development Cooperation
German Embassy
Jakarta
Re : Bilateral German- Indonesia Cooperation

Proposal for joint cooperation projects as part of the Federal Ministry for the
Environment, Nature Conservation and Nuclear Safety's International Climate
Initiative
Dear Mr. Beckermann,
With reference to BMU's letter dated 18th October 2012 regarding the above
mentioned subject, on behalf of the Government of Indonesia, we would like to inform you
that, in principle. we have no objection on 3 (three) proposed projects that will be funded by
BMU's grant as follows:
1. Support to the Indonesia Climate Change Trust Fund (ICCTF): Enhancing Governance of
Climate Change in Indonesia- Bappenas;
2. Green Economy and Locally Appropriate Mitigation Action in Indonesia - Ministry of
Agriculture;
3. Bringing a Range of Supported Mitigation Activities in Selected Countries to the Next Level
Mitigation Momentum - Ministry of Energy and Mineral Resources.
However, an intensive discussions with each ministries is still needed to prepare and
determine objective, scope of work and mechanism of the projects in order to be in line with
L( the needs and our development strategy.
In addition, according to the Government Regulation No. 10/201 1 on procedure for
procurement of foreign loans and grants, the Executing Agency of the project should report
all grant received reg ularly to the Ministry of Finance.
We look forward to hear your favorable response and thank you for your attention and
Sincerely yours, t--/
Wismana Adi Suryabrata

Deputy Minister for Development Funding
Cc.:
1. Deputy Minister for Natural Resources and Environment Affairs , Bappenas
2. Director of Loan and Grant, Ministry of Finance;
3. Deputy Director General E Ill , International Cooperation, BMU
Jal an Taman Suropati No.2, Jakarta 103 10

TPIPnf"\n · ( ()") I \ 1 1h /()7 '< Q() ~ h '\ () ,f;'~ k-o imili · (()") 1\ 1 1d. '\17.1 , c;; itno W P h · "'""v h"nnPn~o o" i.-1
Federal Ministry for the
Environment, Nature Conservation
and Nuclear Safety
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, E 1117, Dr. Karsten Sach
11055 Berlin
- Ministerialdirigent -
State Ministry of National Development Planning
Deputy Director-General E Ill
Mr. Kennedy Simanjuntak
International Cooperation
Director of Bilateral Foreign Funding
Jl. Taman Suropati No. 2 TEL +49 - (0) 3018 - 305 - 2305
Jakarta Pusat 10310 FAX +49 - (0) 3018- 305-3337
INDONESIA Karsten.Sach@bmu.bund.de
www.bmu.de
Copy to:
National Council on Climate Change of Indonesia

UNFCCC National Focal Point
BUMN Bldg. 18 Floor
Jl. Medan Merdeka Selatan No. 13
Jakarta Pusat 10110 ·
Ministry of Energy and Mineral Resources

Directorate of Energy Conservation
Ms. Gita Lestari
Head of Section for Clean Energy Technology Application
JI. Gatot Subroto Kav. 49
Jakarta Selatan 12950
Indonesian Ministry of Finance

Fiscal Policy Office
Mr. Irfa Ampri
Director of Center for Climate Change Financing and Multilateral Policy
Radius Prawiro Bid. 6th Floor
Jl. Dr. Wahidin Raya No. 1
Jakarta 10710
Bilateral German-Indonesian Cooperation

Proposal for four joint cooperation projects as part of the Federal Ministry
for the Environment, Nature Conservation and Nuclear Safety's Interna-
tional Climate Initi.ative
Berlin, 18.10.2012
Dear Mr. Simanjuntak,
As part of its International Climate Initiative, the Federal Ministry for the
Environment, Nature Conservation and Nuclear Safety is funding selected
Postal address: D-1 1055 Berlin, Germany, Delivery address: Kothener Strasse 2-3, D-10963 Berlin, Germany
Public transport: Stop Potsdamer Platz, S1, S2, U2, Bus: 200, M41 , M48
•I
Federal Ministry for the
and Nuclear Safety
Page2
projects in partner countries which contribute to promoting a climate-

friendly economy, adaptation to the impacts of climate change, the conser-
vation and sustainable use of natural carbon sinks /REDD+ or processes
under the Convention of Biological Diversity (CBD) and in particular re-
garding the CBD ' s Strategic Plan 2011-2020.
With reference to the German-Indonesian agreement on technical coopera-

tion of April 9, 1984 we wish to propose a collaboration within the Interna-
tional Climate Initiative on the following projects:
a) Support to the Indonesia Climate Change Trust Fund (ICCTF): En-
hancing governance of climate finance in Indonesia,
(Ref: 12_I_192_IDN_ G_ICCTF)
b) Green Economy and Locally Appropriate Mitigation Actions in In~
_; donesia (GE-LAMA-1),
~ .' (Ref: 12_III_045_IDN_A_LAMA-I)
c) Bringing a range of supported mitigation activities in selected coun-
tries to the next level - Mitigation Momentum,
(Ref: 12_I_ 177_ Global_A_Mitigation Momentum)
d) Catalyzing forest and landscape restoration in key countries,
(Ref: 12_111_049_ Global_A_Forest and landscape restoration)
The projects would_be implemented by the following organisations:

a) Deutsche Gesellschaft fiir Internationale Zusammenarbeit (GIZ)
b) International Centre for Research in Agroforestry (ICRAF)
c) Energieonderzoek Centrum Nederland (ECN)
d) World Resources Institute (WRI).
The Federal Ministry for the Environment, Nature Conservation and Nu-
clear Safety envisages providing the following contributions in support of
these projects:
•
• Federal Ministry for the
and Nuclear Safety
Page3
a) up to 3.500.000 euro
b) up to 4.000.000 euro
c) up to 1.906.855 euro (for several countries)
d) up to 3.000.000 euro (for several countries).
A decision on the final distribution of these amounts on the countries (Chile,

Indonesia, Kenya, Peru, and Tunisia in the third project; Brazil and Indone-
sia in the fourth project) will be made after the implementing agencies have
been assigned. Further details of the projects are attached.
I would be delighted if this opportunity to further strengthen German-

Indonesian cooperation meets your interest, and would be grateful if you
could confirm your interest in writing.
From our point of view these projects could begin as soon as possible.
Yours sincerely,
&
~
IFederal Ministry for the
and Nuclear Safety
International Climate Initiative
Support to the Indonesia Climate Change Trust Fund (ICCTF):

Enhancing governance of climate finance in Indonesia
The Government of Indonesia decided to establish the Indonesia Climate Change Trust Fund
(ICCTF) to pool and coordinate funds from various sources such as international donors and
the private sector to finance Indonesia's climate change policies and programs and to ensu re
that international and private sector support is harmonized and aligned with national
development plans. To date, the innovation fund of the ICCTF is underway with three
thematic windows (land based mitigation, energy, and adaptation), the ICCTF secretariat is
operational, and first pilot projects are implemented. The planned private sector based
Transformation Fund is not yet developed, which would serve as an important catalyst for
enhanced investment by the private sector in mitigation actions. Despite the achievements,
needs for further design steps and capacity development were identified to fully live up to the
challenges, related to among others: national trustee, fiduciary standards, safeguards,
managing new public-private partnership mechanism as well as ensuring transparency and
accountability, developing efficient finance mechanism to channel funds to potential
mitigation actions and target different actors, to link international climate finance with national
budgets and to steer decisions about the most effective and efficient use of funds.
· The project aims at improvi ng the governance str\.lcture of the ICCTF so that it is managed
nationally and is ready to efficiently, effectively and transparently channel international funds
to support the implementation of nationally agreed mitigation actions by local governments,
civil society institutions and the private sector as outlined in the national action plan for GHG
emission reduction (RAN-GRK). To this end, the project support is structured into three as-
pects: a) To enhance capacities for effective financial governance according to international
fiduciary and MRV standards in the area of climate change mitigation in Indonesia; b) To
assist designing and developing a public finance mechanism for national and loca l action
plans for GHG mitigation through strengthen the ICCTF innovation fund;
c) Design and development of the ICCTF transformation fund for the private sector
participation, financing and implementation of actions.
The contribution of the project to reduce GHG em issions is indirect but provides important
preconditions for it, since the provision of adequate levels of funding and a sound f inancial
governance and result based monitoring system are crucial for the implementation of any
mitigation actipns and achieving reductions. When integrated into the mitigation policy
framework and equipped with efficient, reliable and transparent finance procedures and
systems, the financial mechanism (ICCTF) can contribute sign ificantly to up sca ling and
accounting of GHG mitigation actions and the achievement of the national GHG emission
reduction target of Indonesia.
Country: Indonesia
Implementation: Deutsche Gesellschaft fUr lnternationale Zusammenar-
beit (GIZ) GmbH
Partner institutions in Indonesia: State Ministry of National Development Planning (BAP-
PENAS) as ·well as Ministry of Finance
BMU support volume: up to 3.500.000 €
Expected project term: approx. from 01 /2013 to 12/2016
.&
~
and Nuclear Safety
Green Economy and Locally Appropriate Mitigation Actions in Indonesia

(GE-LAMA-1)
The Government of Indonesia has decreed that greenhouse gas emissions should be re-
duced by 26% by 2020 out of national budgets ahd up to 41% with international support. This
decree (62/2011) is known as the Rencana Aksi Nasional Gas Rumah Kaca (RAN-
GRK/National Action Plan for Greenhouse Gas Reduction) . It is based on nationally appro-
priate mitigation action (NAMA). All 33 provinces must submit their own plans (RAD-GRK) to
contribute to the RAN-GRK, by September 2012. Each RAD-GRK has to include land-use
planning for low-emissions development that is inclusive, integrated and informed and which
contributes to achieving 7% annual economic growth.
To assist the Government, the GE-LAMA-1 project has specific objectives. Firstly, the align-
ment of local-level processes for planning and implementing reductions in em issions from the
land-based sector with national and international climate-change policies and institutional
arrangements is planned. Then, it is planned to develop and test a plann ing negotiation
methodology for low-emissions development that includes multiple environmental services
benefits. As a third point, the Government's capacity to plan low-emissions development in
local areas and at the national level will be strengthened.
The project will multiply benefits throughout Indonesia through recommendations to decision
makers, developing methods for land-use planners that guide low-emissions development
and building the capacity of planners at the local and national levels to submit fair and effi-
cient RAD-GRKs that will build a green economy.
Country: Indonesia
Implementation: International Centre for Research in Agroforestry (ICRAF),
also known as World Agroforestry Centre
Partner institutions: State Ministry of National Development Planning (BAPPENAS)
Indonesian Provincial Planning Agency (BAPPEDA)
Indonesian Ministry of Agriculture (and local offices)
BMU support volume: up to 4.000.000 €
Expected project term: approx. from 01/2013 to 12/2016
~
~
I Federal Ministry for the
and Nuclear Safety
Bringing a range of supported mitigation activities in selected countries to the

next level - Mitigation Momentum (global)
Nationally Appropriate Mitigation Actions (NAMAs) are further strengthening the frameworks
for reducing greenhouse gases in developing countries. NAMAs help these countries move
away from their current carbon-intensive development path while simultaneously driving their
econom ic development. However, to carry out NAMAs, developing countries require
technical, financial, and technological support from industrialized countries .
The project is helping governments in five ambitious developing countries to further develop
their portfolio of NAMA proposals. In addition, it is working towards planning specific activities
and tapping financial sources for implementing them . Using numerous case studies, the
project is also analyzing instruments currently in place with regard to their design, financing,
and implementation, and is publishing studies on the experience gained. In Indonesia the
project is intended to cooperate with and support the Ministry of Energy and Mineral
Resources on developing a NAMA in the energy sector.
The project is helping the partner countries to design their NAMAs and pave the way for
implementation and external financing. At the same time, the structure of mitigation
instruments is being discussed at international climate negotiations. This enables the
acquired knowledge to be fed into international and national processes, thus driving them
forward. The standards that are to be established could serve as models for NAMA projects
worldwide.
The project has started in February 2012 with a scoping phase to identify appropriate coun-
tries for the implementation. These countries now have been identified.
Countries: Indonesia, Chile, Kenya, Peru, and Tunisia

Implementation: Energieonderzoek Centrum Nederland (ECN)
Partner institutions in Indonesia: Ministry of Energy and Mineral Resources
BMU support volume: up to € 1.906.855 (for all countries)
Expected project term: from 02/2012 to approx. 01/2014
&
W~
and Nuclear Safety
Inspire, Support, and Mobilize Forest and Landscape Restoration
A recent global analysis by WRI , IUCN, and partners found that more than 2 billion hectares
of deforested or degraded forest lands provide opportunities for "forest and landscape resto-
ration" (FLR). Obstacles, however, exist. Too few are aware of FLR opportunities and bene-
fits, enabling conditions are often missing, and local champions and capacity often need
strengthening.
As part of the Global Partnership on Forest Landscape Restoration (GPFLR), the project
tackles these obstacles with a goal of having at least 10 Mha of restoration being initiated in
5 countries (including Indonesia and Brazil) by 2017 as a new contribution to The Bonn Chal-
lenge.
The project will inspire awareness of and commitments to restoration via sustained commu-
nications efforts, a Global Restoration Council, and annual Restoration Awards - on a global
level. Further, it will support methods and measures that close gaps in enabling conditions
and capacity in order to advance FLR (global methods, applied in Indonesia and Brazil). A
third goal is to mobilize on-the-ground efforts by convening FLR champions (in Indonesia and
Brazil) and building capacity on a global level.
FLR can address climate change mitigation and adaptation in a unified approach, expand
biodiversity habitat, produce more food, create rural jobs, improve water supplies, and re-
duce erosion. The project will catalyze and support replication to advance an emerging, col-
laborative global movement for landscape restoration.
Countries: ln·donesia, Brazil and other countries to be agreed

Implementation: World Resources Institute (WRI)
People & Ecosystems Program
Partner institutions for the project: International Union for Conservation of Nature (IUCN)
Partnership on Forest Landscape Restoration (GPFLR)
Global Restoration Council
World Agroforestry Center (ICRAF)
Partner institutions in Indonesia: Presidential Work Unit for Development Monitoring and
Control
Indonesia State Ministry of National Development
Planning (BAPPENAS)
BMU support volume: up to 3.000.000 € (for all countries)
Expected project term: approx. from 01/2013 to 12/2016
SOP for hiring short term international consultant – GE-LAMA I
BAPPENAS
Foreign/Immigration
GIZ GE-LAMA I (Directorate for SETNEG GIZ Office Jakarta German Embassy
Office
Environment)
Together Developing Terms of

Reference (ToR) for consultant and
reviewing the candidate’s Curriculum
Vitae
Yes Approved ? No
Submit the (final version)

Terms of Reference,
Curriculum Vitae and
passport copy to GIZ
Office Jakarta
For the international

expert, prepare the draft of German Embassy
Verbal Note to be sends the Verbal
forwarded to the German Note to Foreign
Embassy and Office, copy to GIZ
sponsor letter for the visa Office Jakarta
issuance
GIZ Office Jakarta

distributes copies of Verbal
BAPPENAS sends SETNEG requests
Note to the authorities /
recommendation recommendation letter
counterparts concerned
letter to SETNEG from BAPPENAS
(e.g. BAPPENAS,
SETNEG)
SETNEG sends the

approval of
assignment to GIZ Office Jakarta
Foreign/Immigration
German Embassy arranges visa/
Office issues permits
and BAPPENAS, permits
Copy to GIZ Office
Jakarta
Plan of Operation (PoO) ‐ BMUB‐ICCTF Project in 2014
"Strategic Partnership for supported NAMAs and Climate Finance Project"
No. Activities Indicator 2014

1 2 3 4 5 6 7 8 9 10 11 12
Output 1 Design of the ICCTF as a Public Finance Mechanism for Financing NAMAs ICCTF has developed standardized
mechanisms to select projects and
invest funds effectively in NAMAs and
is able to monitor and report robust
data in order to attract new funding
by 12/2015
Suboutput 1.1 Business Process for ICCTF to Channel Fund to Related Ministries (K/L)
Suboutput 1.2 Business Process for ICCTF to Channel Fund to the local governments
1.2.1 Development of SOP for ICCTF to disburse funds (Beneficiaries: sub national government) x x x x
1.2.2 Development of a complete manual on business process to local government. The manual clearly
describes the planning cycle process from planning phase ‐‐> allocation ‐‐> implementation ‐‐> monitoring x x x
and evaluation.
Suboutput 1.3 Business Process for ICCTF to Channel Fund to NGO/universities
Suboutput 1.4 Business Process for ICCTF to channel fund to private sector (link to output 3)
Suboutput 1.5 APBN Funding for ICCTF
Development of SOP for ICCTF to receive funds (Source of fund: APBN) x x x x x x
Output 2 Enhanced capacity of related actors and institutions for the implementation of the public and private Indicator:To compliance with
finance mechanism fiduciary standards, technical
appraisals of project proposals, and
MRV of financed and implemented
projects robust standards are applied
by 7/2015
Suboutput 2.1 A capacity needs assessment is conducted
(link to output 1)
2.1.1 Capacity needs assessment is conducted
x x xx
Suboutput 2.2 A capacity development strategy including work plan and implementation strategy based on capacity
needs assessment
Suboutput 2.3 Capacity building measures are implemented
2.3.1 Climate finance training for Finance manager of ICCTF secretariat x xx
2.3.2 Capacity development or logical framework training for ME manager of ICCTF secretariat x x
2.3.3 Strategic meeting with ICCTF secretariat x x xx
Page 1 of 3

1 2 3 4 5 6 7 8 9 10 11 12
Output 3 Design of the Transformation Fund of the ICCTF for the involvement of the private sector in the *Transformation Fund is a strategy
mitigation actions of Indonesia orientation/funding mechanism of
ICCTF towards engaging and working
with private sector
1. Indicator: Draft strategy/concept
to involve private sector in financing
mitigation actions through/in
cooperation with ICCTF is available by
3/2015
2. Indicator: The transformation fund
is established
3. Indicator: The transformation fund
has leveraged private sector capital
for investments in NAMAs by 7/2016
Suboutput 3.1 Draft design of transformation fund and its implementation concept developed through series of
discussion and workshops (link with output 1)
3.1.1 Strategic Missions for transformation Fund x x
Follow up the business plan for the private sector involvement + strategy including develop financial
x x x x x
3.1.2 model
3.1.3 analysis on regulatory barriers for private sector engagement climate finance together with AIGCC project
x x
3.1.4 Workshop on engaging private sector in ICCTF (fact findings, and next step) inviting bappenas ppp unit,
SOEs, CSR forum, etc
x x
Suboutput 3.2 Public Private Roundtables in order to launch and maintain the communication to and collaboration
with the private sector
3.2.1 Meetings on CSR, private sector involvement x x
Suboutput 3.3 Draft detailed design of transformation fund and its financing instruments (for example PPP, harness
5% of revenue that company is obliged by law to invest in CSR, mobilize the international private sector
through appropriate instruments)
Suboutput 3.4 Pilot private sector participation through the ICCTF Transformation Fund and further technical
assistance for early operationalization
Suboutput 3.5 Strategic alliances with investor are built, the network is maintained, and financing plans for projects is
developed together with network partners
Output 4 Facilitation of inter‐institutional coordination in funding national activities with different financing Indicator: Asset packages from

instruments financing instruments of different
public institutions are tied together
and finance NAMAs in common by
12/2016
Suboutput 4.1 Develop a cooperation map for enhanced inter‐institutional coordination
4.1.1 Develop a list of relevant public actors, actors from civic society and private sector (based on market
segmentation, policy support including incentive schemes, tax credits etc) (in cooperation with Output 2) x x
4.1.2
Create a matrix that combines all identified actors to better select, identify most promising partners for
x x x
project development and implementation (in cooperation with Output 3)
4.1.3 Detailed list of stakeholder with the information (for example, PIP, how do they work, etc), that relevant
x x
for identifying different financing instruments
Page 2 of 3

1 2 3 4 5 6 7 8 9 10 11 12
Suboutput 4.2 Facilitate coordination with Ministry of Finance and other Line Ministries in order to support the
development of consistent national economic policies and incentives for mitigation/adaptation
activities and fund raising
4.2.1 ICCTF climate investment forum/ NAMAs summit workshop x
4.2.2 Conduct workshop (climate finance) for Public Sector to facilitate climate finance readiness e.g. in the
form of TOT (in cooperation with Output 2)
Suboutput 4.3 Design an interface with RAN‐GRK/RAN‐API process (Coordination Team)
4.3.1 Support the development of communication strategy in ICCTF secretariat (external) x x x
4.3.2
Conduct regular workshops and meetings with relevant line ministries to orchestrate harmonized
x x x x x x
financing, development and implementation of Mitigation and Adaptation activties
4.3.3 Develop a strategy on how the work of the RAN‐GRK Secretariat, NC4D and ICCTF can be aligned to ensure
harmonized process for financing mitigation and adaptation activities
Exchange on lesson learned at international level (e.g UNFCCC and related fora ) for enhanced
exposition of the ICCTF, informing the UNFCCC and peer to peer learning for further development of
Suboutput 4.4 the ICCTF
4.4.1 Develop process related to ICCTF's desire to become NIE at the GCF x x
4.4.2 Plan seminars and workshops at UNFCCC meetings (e.g. GCF in South Korea, New York etc) ‐ x x
Harness donors‘ dialogue to a) define role of ICCTF, b) identify appropriate instruments, b) develop
Suboutput 4.5 models for strategic alliances ‐‐> overlap with Public‐Private Alliance
Page 3 of 3

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II

Implementation Agreement for

Q). l Federal Ministry

QIZ W for the Environment.. Ne~ture Conservation,

of the fedenl Republic of Gennomy BAPPENAS

Implementation Agreement for Technical Cooperation Projects

BASIS OF THE IMPLEMENTATION AGREEMENT 6

1. PROJECT OBJECTIVE, INDICATORS, AND TARGET GROUP 6

2 CONTRIBUTIONS TO THE PROJECT BY THE GOVERNMENT OF THE FEDERAL

2.1 PROVISION OF EXPERTS AND AUXILIARY PERSONEl 8

2.2 SUPPLY OF MATERIALS AND EQUIPMENT 9

2.3 OPERATING AND ADMINISTRATIVE COSTS 10

2.4 OTHER CONTRIBUTIONS 10 .

3 CONTRIBUTIONS TO THE PROJECT BY THE GOVERMENT OF THE REPUBLIC OF

3.1 PROVISION OF EXPERTS AND AUXILIARY PERSONNEl 10

3.3 PROVISION OF SITES, BUILDINGS AND WORK PREMISES 10

3.4 OTHER ADMINISTRATIVE PROCEDURES 10

4.1 MANAGEMENT AND ADMINISTRATION 11

4.2 MONITORING AND EVALUATION 11

4.3 SUSPENSION OF CONTRIBUTIONS AND TERMINATION OF AGREEMENT 11

4.4 FORCE MAJEURE 12

QIZ Building and Nuclear SafetY

4.5 TERM OF AGREEMENT 12

4.6 SETTLEMENT OF DISPUTE 12

4.8 WRITTEN FORM 12

4.9 AGREEMENT WITH INDIVIDUAL IMPLEMENTING ORGANISATIONS 13

4.11ENTRY INTO FORCE 13

QIZ W for the En~ronment. Nature Conservation,

of the Federal Republic of Germany BAPPENAS

BAPPENAS Badan Perencanaan Pembangunan Nasional (National

QIZ ~ for the Envifonment. Nature Conservation.

of the federal Republic of Germany BAPPENAS

Deutsche Gesellschaft fUr lnternationale

-hereinafter referred to as "GIZ" -

Ministry of National Development Planning/

Jl. Taman Suropati No.2

-hereinafter referred to as "BAPPENAS"--

concerning the project

Strategic Partnership for supported NAMAs and Climate Finance

- hereinafter referred to as the "Project" -

.£Ia IFi!deral Ministry

QIZ W for_th~ Environment. N1ture Conservation.

of the federal Republic o{ Germany BAPPENAS

Basis of the Implementation Agreement

The following shall form the basis of this Implementation Agreement:

Summary Record of the Negotiations on Development Cooperation between the

1. Project Objective, Indicators, and Target Group

QIZ W for the Environmenl,. Nature Conservation,

of the Federal Republic of Germany BAPPENAS

Transformation Fund is not yet developed, which would serve as an important

1.1. The overall project goal:

1.2. Specific project goals (output):

1. Design of the ICCTF as Public Finance Mechanism for Financing NAMAs

1.3. Target group:

Direct target groups:

Indirect target groups:

1.4. Target indicators

1.4.1 ICCTF has developed standardized mechanisms to select projects and

QIZ W' for the EnWonmenl.. Nature Conservation,

of the Federal Republic: of Germany BAPPENAS

Verification: credit rating of the ICCTF, documentation of trainings of

2. Contributions to the Project by the Government of the Federal Republic of

In accordance with the Formal letter from BMUB to BAPPENAS dated on 18

2.1. Provision of experts and auxiliary personel