INDONESIA - PROVINCIAL AREA DEVELOPMENT PROGRAM II

THE USAID GRANT WILL FUND 2 LONG-TERM ADVISORS FOR EACH OF THE PROVINCES: 1 IN AGRICULTURAL/RURAL DEVELOPMENT PLANNING AND ADMINISTRATION, AND 1 IN AGRICULTURAL PRODUCTION. SHORT-TERM SPECIALISTS WILL BE PROVIDED AS NEEDED. GRANT-FUNDED SHORT- AND LONG-TERM TRAINING WILL ALSO BE AVAILABLE FOR LOCAL OFFICIALS, BOTH ABROAD AND IN INDONESIA. THESE INPUTS ARE DESIGNED TO IMPROVE LOCAL GOVERNMENT APPARATUS FOR RURAL DEVELOPMENT PLANNING, ADMINISTRATION, AND EVALUATION AS WELL AS RESEARCH, EXTENSION, AND INFORMATION DISSEMINATION. INPUTS AT THE CENTRAL GOVERNMENT LEVEL WILL INCLUDE TECHNICAL ASSISTANCE AND TRAINING. THE USAID LOAN WILL FINANCE SMALL-SCALE PILOT SUBPROJECTS WITHIN EACH PROVINCE WHICH HAVE THE POTENTIAL OF INCREASING INCOMES OF THE RURAL POOR DIRECTLY AND IMMEDIATELY. SUBPROJECTS WILL FOCUS ON PRODUCTION OF FOOD AND CASH CROPS, LIVESTOCK MANAGEMENT, CREDIT, COOPERATIVE DEVELOPMENT, AND PROMOTION OF SMALL RURAL INDUSTRIES. GOI WILL PROVIDE PROJECT ADMINSITRATION, OPERATION, AND PARTIAL FINANCING OF SUBPROJECTS. PDP ADMINISTRATION INVOLVES A COMPLEX MIX OF INSTITUTIONS AT THE PROVINCIAL, DISTRICT (KABUPATEN) AND VILLAGE LEVELS. THE REGIONAL DEVELOPMENT PLANNING BOARDS (BAPPEDA) IN EACH PROVINCE WILL BE RESPONSIBLE FOR PLANNING AND COORDINATION AMONG PROVINCIAL SERVICE AGENCIES AND KABUPATEN AS WELL AS PROJECT IMPLEMENTATION. PDP II IS AN EXPANION OF PFP 1 (4970264) WHICH BEGAN IN 2 PROVINCES. PDP II WILL EXPAND THE PROGRAM TO 6 ADDITIONAL PROVINCES IN 2 STAGES: BENGHULU (ON SUMATRA), SOUTH KALIMANTAN, AND NUSA TENGGARA TIMOR IN FY"78, AND 3 ADDITIONAL PROVINCES, INCLUDING EAST JAVA, IN FY"79. THIS EXPANSION IS CONSIDERED ESSENTIAL TO THOROUGHLY TEST THE PDP APPROACH PRIOR TO ITS NATIONAL REPLICATION.