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Brussels, 21 May 2010

EU-Indonesia Partnership and Cooperation Agreement: a wider framework for cooperation

Since the signature of EU-Indonesia Partnership and Cooperation Agreement (PCA) in November 2009, development cooperation is part of a wider cooperation framework. The PCA provides opportunity to expand EU engagement in numerous fields. Four priorities for closer cooperation have already been agreed at the highest level: education, human rights/democracy; trade and investment and the environment.

EU-Indonesia Development Cooperation – a focus on Education

  • The Country Strategy Paper (CSP) for Indonesia outlines the scope of bilateral development co-operation between the EU and Indonesia for the period 2007-2013. Around €450 million have been allocated for its implementation. To respond to the priority given by the Indonesian Government to education reforms, a strong emphasis is put on the social sectors – education represents almost 80% of the foreseen funding–, with Trade & Investment and Law Enforcement & Justice as other key sectors. Following the mid-term review of the strategy, additional action in the field of climate change is being considered.

  • In addition to the bilateral cooperation, Indonesia also benefits from regional cooperation and thematic programmes. Through the latter, the EU is notably contributing to the Global Fund to fight HIV/AIDS, Tuberculosis and Malaria, which is financing programmes in Indonesia up to €350 million (EU share).

  • The EU has also invested significantly in the post-disaster reconstruction effort in Indonesia, following the Asian Tsunami of December 2004, and the Java earthquake of May 2006. The total reconstruction portfolio amount to €236 million and implementation is due to be completed by 2012. Complementing the reconstruction effort in Aceh after the tsunami, several programmes to support the Aceh peace Process have also been implemented.

  • The emergence of Indonesia as a Middle Income Country has brought about new relationships with development partners, as new forms of cooperation are built using a wider range of implementation modalities. Consequently, in order to make our partnerships more coherent and aligned with government policies, EU assistance is progressing from project-based forms of support to broader programme and sector-wide approaches by concentrating upon sectors where there is considerable room for performance improvement

  • With the Jakarta Commitment in January 2009, firm principles have been established for future development cooperation between the EU and Indonesia. The Commitment builds upon the Paris Declaration on Aid Effectiveness in formulating a roadmap for future cooperation. The aim will be to strengthen local ownership of development assistance through strengthened government systems and focussed capacity building.

Supporting improvement in access, quality and governance in the Education sector in Indonesia

  • On-going EU-Indonesia cooperation on Education

The on-going Basic Education Sector Capacity Support Programme (2006-2010) and the following joint EU/Netherlands Basic Education Sector Capacity Support Programme 2 (2008-2012) for a total EU contribution of €37 million, focus on country capacity for policy/strategy setting, improved management and delivery of basic education services at district and school levels, and improved efficiency and governance in the use of resources. They are implemented in selected provinces, districts and schools.

  • New programme to support good basic education services

Building on these existing programmes, the new Education Sector Support Programme (ESSP) will support key policies and strategies in the Government education strategic plan for 2010-2014 to ensure nation-wide access to, quality of, and good governance in basic education services. The EU sector budget support, with an initial contribution of €180 million over three years (2010-2012), will be complemented by an AusAID-funded targeted budget support. A subsequent additional EU contribution is foreseen to support the last two years of implementation of the education strategic plan 2010-2014. A complementary technical cooperation component (the Analytical and Capacity Development Partnership, ACDP) with an EU contribution of €20 million over five years (2010-2014) will provide the Government with technical expertise and access to international knowledge and best practices to achieve its education objectives. It will be jointly funded by EU and AusAID and managed by the Asian Development Bank (ADB).

The ESSP is EU's second largest budget support operation in Asia. It brings together the two largest grant donors to education in Indonesia, as well as the ADB for implementation of the technical cooperation component, and offers potential for further coordination with other development partners. It is viewed by the Government as the first good practice in implementing the Jakarta Commitment for aid effectiveness.

  • Support to education via Non State Actors

Complementing its bilateral cooperation, the EU is also supporting Non State Actors to conduct capacity development and institutional strengthening for education stakeholders. The aim is to improve access to quality education and increase transparency and monitoring of education budget. At the moment, there are 6 on-going projects with Non State Actors with a total EU support of more than €1 million.

  • Support to higher education

The EC is also supporting higher education, notably since 2002 through its Asia Link programme (Asia Regional funding). This programme helped Indonesian tertiary education bodies to better answer the needs of the labour market, including through the development of new courses and curriculum. Scholarships for Indonesian students have also been made available since 2004 through the Erasmus Mundus programme, which to date has enabled 241 students to pursue master level studies, 2 candidates to undertake PhD studies, and 16 scholars to develop their teaching skills in the European Union.

Examples of EU funded projects in Indonesia:

  • Clean Batik Initiative of the Regional Programme on Sustainable Consumption and Production (Switch Asia)

  • Comprehensive HIV/AIDS programme in Banceuy narcotics prison

  • Aceh Forest and Environment Project – Indonesia

  • Community-Based Settlement Rehabilitation and Reconstruction project for NAD and Nias – Indonesia

More information on EU-Indonesia Cooperation is available on the internet:

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