Climate Change Trust Fund: Standard Operating Procedures. Miguel Fredes editor

Indonesia Climate Change Trust Fund

(ICCTF)

STANDARD OPERATING PROCEDURES

(SOP)

edited by

Miguel Fredes

UNDP Consultant

June 2011

Indonesian Climate Change Trust Fund (ICCTF)

ii

NOTICE © Copyright of the Indonesian Climate Change Trust Fund (2011). All rights reserved.

This publication could contain technical inaccuracies or typographical errors. Enhancements are made

periodically to this publication and the procedures described; any enhancements or procedural changes may be

incorporated in new editions of the publication. The Indonesian Climate Change Trust Fund may make

improvements and/or changes in the procedure(s) in this publication at any time. All other trademarks and

logos used herein are the property of their respective owners.

Document Control Information

Name: ICCTF Standard Operating Procedures (SOP)

Version Date: June 21 2011

Author: Miguel Fredes – attorney-at-law

Status: Final Draft

Indonesian Climate Change Trust Fund (ICCTF)

iii

PREPARATION TEAM Responsible Person: BAPPENAS as Chairman of Steering Committee Technical Formulation Team: BAPPENAS Consultant: UNDP Miguel Fredes Supporting Agency: United Nations Development Programme (UNDP)

Indonesian Climate Change Trust Fund (ICCTF) Abbreviations and Acronyms

Standard Operating Procedures Version 0. 5 iv June 21 2011

ABBREVIATIONS AND ACRONYMS

APBD Anggaran Pendapatan dan Belanja Daerah (District Budget)

APBN Indonesia’s State Budget

AWP Annual Work Plan

BAPPENAS Badan Perencanaan Pembangunan Nasional

National Development Planning Agency

CDM Clean Development Mechanism

DP Development Partners

DRPHLN‐JM

(Blue Book)

Daftar Rencana Pinjaman dan Hibah Luar Negeri Jangka Menengah

List of Medium ‐Term Plans Funded by External Loans and Grants

BPKP Badan Pengawasan Keuangan dan Pembangunan

Financial Development Comptroller/Financial And Development

Supervisory Board

CSO Civil Society Organization

Non-state group or body whose aims are neither designed to generate

profits, nor to seek governing power.

DIPA Daftar Isian Pelaksanaan Anggaran

Government budgeting document.

EA Executing Agency

A Government institution, Line Ministries, Government Agencies and Local

Government, is eligible to submit project proposals to the ICCTF and

responsible for executing the project.

EQ Management and use of equipment and inventory

FM Financial Management

GHG Greenhouse Gas

GOI Government of Indonesia

JC Jakarta Commitment

DRPPHLN

(Green Book)

Daftar Rencana Prioritas Pinjaman Hibah Luar Negeri

List of Annual Priority Activities Funded by External Loans and Grants

HR Human Resource – the group responsible for selection and administration

of staff.

IA Implementing Agency

Institutions including GOI, civil society, private sector and/or academic

Indonesian Climate Change Trust Fund (ICCTF) Abbreviations and Acronyms

Standard Operating Procedures Version 0. 5 v June 21 2011

institutions, partnering with an Executing Agency, responsible for the

actual implementation of a ICCTF supported project

ICCSR Indonesia Climate Change Sectoral Roadmap

ICCTF Indonesia Climate Change Trust Fund

LKPP Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah

Financial report of the central Government

LOA Letter of Agreement

A contract signed by the EA and Trustee detailing the conditions and

objectives of funding from ICCTF to the EA

NPD National Project Director

PAD Project Appraisal Document

PCN Project Concept Note

PP Project progress report and rate of delivery

PPP Public Private Partnership

PR Procurement Request for goods and/or services

Prodoc Project Document

QPR Quarterly Progress Report

ROI Return on Investment

ROR Assets, Rate of Return

RPJM Rencana Pembangunan Jangka Menengah

National Midterm Development Plan

SC Steering Committee

SOP Standard Operating Procedures

Yellow Book National Development Plan: Indonesia’s Response to Climate Change.

List of climate change initiatives submitted by Line Ministries.

PoA Program of Activities

REDD+ Reducing Emissions from Deforestation and Forest Degradation and (+)

Conservation, Sustainable Management of Forests and Enhancement of

Forest Carbon Stocks.

SME Subject Matter Expert

TC Technical Committee

UNDP United Nations Development Programme

Indonesian Climate Change Trust Fund (ICCTF) Table of Contents

Standard Operating Procedures Version 0.5 vi June 21 2011

TABLE OF CONTENTS

FOREWORD .............................................................................................. 10

1. Introduction ....................................................................................... 13

1.1 Background ........................................................................................................ 13

1.2 ICCTF Operating Principles ................................................................................. 13

1.3 Regulatory and Document Framework .............................................................. 14

1.3.1 Laws: ....................................................................................................................14

1.3.2 Government Regulations: ....................................................................................14

1.3.3 Ministry Decree/ Ministry Regulations: ...............................................................14

1.3.4 Deputy Minister/ Director General Decree/ Regulations: ...................................14

1.4 Legal Status of the ICCTF .................................................................................... 15

1.5 Objectives of the ICCTF ...................................................................................... 15

1.6 Fund Structure ................................................................................................... 15

1.6.1 Innovation Fund ...................................................................................................15

1.6.2 Transformation Fund ...........................................................................................15

1.6.3 Priority Sectors and Outcomes ............................................................................15

2. Governance Structure ......................................................................... 16

2.1 Steering Committee (SC) .................................................................................... 17

2.1.1 Mandate ...............................................................................................................17

2.1.2 Committee Members ...........................................................................................17

2.1.3 Roles and Responsibilities ....................................................................................18

2.1.4 Meeting Procedures and Decision-Making Processes .........................................18

2.1.5 Forum for Policy Dialogue ....................................................................................19

2.2 Technical Committee (TC) .................................................................................. 20

2.2.1 Mandate ...............................................................................................................20

2.2.2 Committee Members ...........................................................................................20

2.2.3 Role and Responsibilities .....................................................................................20

2.2.4 Meeting Procedures and Decision Making Processes .........................................20

2.2.5 Investment Windows ...........................................................................................21

2.3 The Trustee ........................................................................................................ 22

2.3.1 Mandate ...............................................................................................................22


Standard Operating Procedures Version 0.5 vii June 21 2011

2.3.2 Appointed Institution ...........................................................................................22


2.4 ICCTF Secretariat ................................................................................................ 23

2.4.1 Mandate ...............................................................................................................23

2.4.2 Composition .........................................................................................................23


2.5 Executing Agency ............................................................................................... 24

3. Project Cycle ....................................................................................... 25

3.1 Focus of Project Activities .................................................................................. 25

3.1.1 Investment Considerations: Energy .....................................................................25

3.1.2 Investment Considerations: Land Based Mitigation ............................................26

3.1.3 Investment Considerations: Resilience and Adaptation ......................................26

3.2 Project Selection Criteria ................................................................................... 26

3.2.1 Criteria of Funded Activities.................................................................................26

3.2.2 General Programmatic Considerations ................................................................26

3.3 Terms and Conditions ........................................................................................ 27

3.4 Project Selection Process ................................................................................... 27

3.5 Mechanism for Registration of ICCTF approved Projects .................................. 30

3.6 ICCTF Financial Mechanism................................................................................ 31

3.6.1 Project Bank Account Management ....................................................................31

3.6.2 Account Reporting and Financial Report .............................................................32

3.7 Fund flows of ICCTF ............................................................................................ 33

3.7.1 Managing Contributions and New Commitments ...............................................33

3.7.2 Disbursing Funds ..................................................................................................35

4. Monitoring and Evaluation ................................................................. 39

4.1 Monitoring of ICCTF ........................................................................................... 39

4.2 Evaluation........................................................................................................... 40

4.2.1 Relevance .............................................................................................................41

4.2.2 Effectiveness ........................................................................................................41

4.2.3 Efficiency ..............................................................................................................41

4.2.4 Impact ..................................................................................................................41

4.2.5 Sustainability ........................................................................................................42

4.3 Monitoring Guidelines ....................................................................................... 42


Standard Operating Procedures Version 0.5 viii June 21 2011

4.3.1 ICCTF Indicators ...................................................................................................42

4.3.2 Key Monitoring & Evaluation responsibilities of the ICCTF Secretariat ...............43

4.4 Communication .................................................................................................. 44

4.5 Reporting on Projects Funded by ICCTF............................................................. 44

4.6 Reporting to donors ........................................................................................... 47

4.7 Audit ................................................................................................................... 48

5. Assets Management ........................................................................... 49

6. Project Completion ............................................................................. 49

7. Policy Dialogue ................................................................................... 50

ANNEXES .................................................................................................. 51

A. Investment Strategy Summary – Land Based Mitigation Window .................... 51

B. Investment Strategy Summary – Energy Window ............................................. 53

C. Investment Strategy Summary – Resilience and Adaptation Window .............. 54

D. Administration and Financial Management Self-Assessment Form .................. 56

E. Administration and Financial Management Monitoring Form .......................... 58

F. Programmatic Monitoring Form ........................................................................ 61

Figures and Tables

Figure 1. ICCTF Organizational Structure .............................................................................................. 16

Figure 2. Flow Diagram of Project Selection Process ............................................................................ 29

Figure 3. Registration of ICCTF approved Projects ................................................................................ 30

Figure 4. Project Bank Account Management ....................................................................................... 31

Figure 5. Flow Diagram of Receiving Contribution ................................................................................ 34

Figure 6. Flow diagram of Fund Disbursement Process ........................................................................ 37

Figure 7. Channelling Funds to Regions ................................................................................................ 38

Figure 8. Flow Diagram of ICCTF Monitoring and Evaluation ............................................................... 47

Table 1 Overview of Project Selection Process ..................................................................................... 28

Table 2 ICCTF Project M&E Key Documents .......................................................................................... 45


Standard Operating Procedures Version 0.5 ix June 21 2011

Indonesian Climate Change Trust Fund Standard Operating Procedures

Standard Operating Procedures Version 0.5 10 June 21 2011

FOREWORD

The ICCTF is a national trust fund governed by a Steering Committee led by BAPPENAS and a

Technical Committee that evaluates project proposals in terms of eligibility, feasibility,

sustainability and environmental and social impacts. The Steering Committee has assigned

the United Nations Development Programme (UNDP) in Indonesia as Interim Fund Manager

until a National Trustee is appointed. The routine operations of the Trust Fund are managed

by its Secretariat.

The Indonesia Climate Change Trust Fund has the overall goals of aligning development

assistance for climate change more closely with development priorities defined by the

Government of Indonesia (GOI) and to pool financial resources for climate change policy

related programs.

The ICCTF receives non-refundable contributions from bilateral and multilateral donors serving as a channel to attract, mobilize and manage investments and financial resources for climate change mitigation and adaptation programs, projects and activities. At such the ICCTF faces several challenges inter alia providing personnel with numbered instructions on procedures to ensure that those are performed consistently and in compliance with government regulations and policies; encourage aid effectiveness, increase information access, optimize decision-making, governance and management, and accelerate resources disbursement and delivery. Therefore, the National Development Planning Agency (BAPPENAS) with original support from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and currently the United Nations Development Programme (UNDP) Indonesia has developed a manual of Standard Operating

Procedures (SOP), which details a set of step-by-step instructions for carrying out the routine operations of ICCTF. This current version of the SOP describes inter alia the mandate, roles and responsibilities of its bodies and Secretariat, governance mechanisms and decision making procedures, its project cycle, monitoring and evaluation, assets management, and project completion. The purposes of developing these SOP are to:

Provide guideline for administration, governance, disbursement and delivery of the ICCTF.

Achieve a successful quality system as it provides its governance bodies and Secretariat with specific information to perform a task or decision properly.

Increase consistency in the quality and integrity of management, disbursement and funds delivery.

Describe in detail both technical and fundamental programmatic operational elements of the ICCTF.

We are hopeful the ICCTF will enhance the commitments of Indonesia to respond to the challenges of climate change, and we look forward to mobilize funds partnering with



bilateral and multilateral donors. Last but not least, I would like to express my profound appreciation for all stakeholders who have been involved in the creation and review of this SOP. Jakarta, June 2011 (SIGNATURE) Vice Minister of National Development Planning/ Vice Chairman of National Development Planning Agency As the Chairman of the ICCTF Steering Committee Lukita Dinarsyah Tuwo





1. Introduction The Standard Operating Procedures (SOP) covers the operations, roles and responsibilities of

the Indonesian Climate Change Trust Fund (ICCTF) bodies. Further, describes its governance

structure, project life cycle, monitoring and evaluation mechanisms, asset management, and

project completion. This SOP is a living document to be approved by the Steering

Committee.

1.1 Background The Indonesia Climate Change Trust Fund (ICCTF) is a national-managed trust fund that aims

to contribute effectively and efficiently to mainstreaming climate change adaptation and

mitigation funded activities in government planning and implementation across Indonesia.

The ICCTF, by design, will have two phases of operation: the first stage supports the

Innovation Fund, a grant expenditure fund supporting climate change projects within line

ministries not covered by the domestic budget; the second phase is planned to be a

Transformation Fund, which is a revenue generating revolving investment fund.

The ICCTF was established with the vision that it would serve as a mechanism for multilateral

and bilateral donors making financial pledges to pool resources to achieve climate change

mitigation and adaptation voluntary targets with the support of development partners (DP).

The ICCTF is part of the GOI’s commitment to implement the Jakarta Commitment (JC) to

enhance national ownership, and improve aid coordination in response to climate change.

The JC’s roadmap sets out the strategic vision and key pillars of the country development

agenda.

1.2 ICCTF Operating Principles The ICCTF basic operating principals are as follows:

The ICCTF activities and financial contributions shall be in line with the national

development priorities according to the National Midterm Development Plan (RPJM).

The trust fund institutional framework shall serve as an important policy dialogue

forum for Development Partners and GoI on climate change mitigation and

adaptation matters.

The ICCTF funded project carried out by Line Ministries /Agencies shall comply with

Keppres 54/2010.

Proposal submission, evaluation, administration, delivery as well as monitoring and

evaluation mechanisms of the ICCTF shall follow the principles of good governance,

transparency and accountability.

The ICCTF shall address disclosure of funding decisions and duty to monitor

implementation of funding decisions.



ICCTF’s National trustee shall manage financial contributions until a new national

fund manager is legally appointed.

1.3 Regulatory and Document Framework The following Indonesian laws, decrees and regulations are the basis for the development of

the SOP:

1.3.1 Laws:

1. Law No. 17/2003 on State Financial Management, which states that the State’s income

and expenditure in one fiscal year has to be recorded in the National Budget. The National

Income consists of taxes, non-taxes and grants.

2. Law No. 25/2004 on National Development Planning System.

3. Law No. 1/2004 on National Treasury.

1.3.2 Government Regulations:

1. Government Regulation No. 10/2011 about Modalities of Foreign Loans and Grants.

2. Government Regulation No.39/2006 regarding the Monitoring and Evaluation of the

Implementation of Development Plans.

3. Government Regulation No.21/2004 regarding the Preparation of Work Plans and

Budgets by Sectoral Ministries.

1.3.3 Ministry Decree/ Ministry Regulations:

1. Decree of State Minister for National Development Planning Agency/Chairman of

Bappenas No PER.5/M.PPN/06/2006, on Procedures for Planning and Submitting

Proposals and Assessing projects funded by Foreign Loans and/or Grants.

2. Minister of Finance Regulation No.52/PMK.010/2005, regarding the Procedure of

Grants Distribution to the Regions.

3. Ministry of Finance Regulation No. 143/PMK.05/2006, concerning Modalities of

Foreign Loans and Grant Disbursement.1

4. Ministry of Finance Regulation No. 57/PMK.05/2007, regarding Management of

Accounts owned by State Ministries/Bodies/Offices/Work Units.

5. Ministry of Home Affairs Regulation No. 38/2008, on Grant Acceptance and Assistance

towards Civil Society Organizations (CSOs) from/and to Foreign Party.

1.3.4 Deputy Minister/ Director General Decree/ Regulations:

Decree of the Director General of State Treasury Regulation No. PER 67/PB/2006, on

procedure on registration and legalization of foreign grants (in revision as grant

disbursement without KPPN procedures).

1 Based on this regulation, there are four payment methods: Direct Payment, Special account, Reimbursement and Letter of

Credit (L/C).



1.4 Legal Status of the ICCTF The GOI established the ICCTF by Ministerial Decree 59/M.PPN/HK/09/2010 in September

2009.

1.5 Objectives of the ICCTF The two main objectives of the ICCTF are:

1. To achieve Indonesia’s goals of a low carbon economy and greater resilience to

climate change.

2. To enable the GOI to increase the effectiveness and impact of its leadership and

management in addressing climate change issues.

1.6 Fund Structure To implement the ICCTF objectives, ICCTF consists of two funds an Innovation Fund and a Transformation Fund. 1.6.1 Innovation Fund

The ‘Innovation Fund’ shall channel grant funds from GOI budgets, DP and other financial

contributors to be used for activities that provide indirect economic and social benefits.

Furthermore, these supported activities will not provide any direct financial return. The

recipients of the ICCTF Innovation Fund shall be Indonesian Government institutions, local

governments, NGOs and civil society.

1.6.2 Transformation Fund

The objectives of the ‘Transformation Fund’ are to mobilize and maximize investment in a

low-carbon and climate resilient economic development path. The fund shall support inter

alia financing for carbon trading projects such as Clean Development Mechanism (CDM),

Program of Activities (PoA), and REDD+ or voluntary carbon markets. The Transformation

Fund shall also allow for access to funding through Public Private Partnerships (PPPs), foreign

and domestic loans and capital markets.

1.6.3 Priority Sectors and Outcomes

The Indonesia Climate Change Sectoral Roadmap (ICCSR) will support the GOI’s development

vision related to climate change for the next 20 years. The implementation of the Roadmap

will be through National Development Plan for the period 2010 – 2014.

The nine priority sectors are as follow:

1. Mitigation Sectors: Energy, Forestry, Industry, Transportation, and Waste Management.

2. Adaptation Sectors: Agriculture, Marine and Fishery, Water Resources, and Health.

Therefore, the ICCTF will contribute to achieve the following outcomes:

1. Improve energy security and reduce emissions from the energy sector, development of

alternative and renewable energy sources and waste management reduction.



2. Address deforestation and forest degradation, advance conservation, sustainable

management of peat-lands and forest resources..

2. Governance Structure

The ICCTF will have two bodies: The Steering Committee, The Technical Committee and a

Secretariat.

The described governance and organizational structure is described in the following figure:

Figure 1. ICCTF Organizational Structure

Financing

Plenary Members

Development partners’

Steering Committee (SC)

GOI Members

Chairperson: Vice-Minister, Bappenas

Co-Chair: Chief Secretary, Bappenas

Technical Committee (TC)

Chairperson: Director of Environment, Bappenas

Co-Chair: 1. Director for Multilateral, Bappenas

2. Director of Fund, MoF

Executing Agency / Implementing Agency

Ministries/ Agencies/ Local Government/ NGO’s

National Trustee

Legend:

Project Proposal

Approval and

Assignment

Fund Channeling

Monitoring and

Supervision

ICCTF Secretariat



2.1 Steering Committee (SC)

2.1.1 Mandate

The Steering Committee (SC) is the highest governing body overseeing the ICCTF. The

Committee provides leadership, strategic guidance, funding prioritization, decision-making,

oversight of the ICCTF, and serves as a coordinator for the forum of policy dialogue among

the GOI, Development Partners and Indonesia’s civil society.

2.1.2 Committee Members

The composition of the SC shall be determined by Ministerial Decree (Surat Keputusan – SK

Menteri PPN) relating to the ICCTF. However, the proposed membership is outlined as

follow:

a. Chair: The plenary meeting of the SC is chaired by the Head of the SC or the Deputy Head

if the SC Head is absent (alternating). The Chairperson will be the Vice Minister of Bappenas.

The Deputy Head will be the Chief Secretary of Bappenas.

b. GOI representatives: include Echelon I of the Bappenas, MoF, MoE and related Ministries.

c. Development partners/contributors: Representatives of donors making contributions in

the amount of XXXX, are eligible as voting members. The financial contributors shall submit

the name of their representative, in writing, to the SC within 15 working days of signing their

Contribution Agreement.

The National Trustee will be accountable to the SCT for the performance of its fiduciary

responsibilities.

Dialogue partners/observers to the SC include the following entities:

d. Representatives of International agencies or inter-governmental organizations: e.g. UNDP,

UNEP, IUCN, and OCHA.

e. Representatives of Civil Society Organizations (CSO).

Therefore, the SC would be made up of the following representatives:

The Chairperson will be the Vice Minister, Bappenas.

The Co-Chair will be the Chief Secretary, Bappenas.

Representatives from key Ministries of the GOI will be drawn from Echelon I of Bappenas, MoF, MoE and Related Ministries.

Representatives of civil society are drawn from academia, Non-Government

Organizations (NGOs) and professional/private sector associations.

Development Partners and CSO representatives shall normally serve on a fixed term

basis of one (1) year, which may be renewed for only one more year.

The five largest financial contributors to the SC are eligible as voting members.

The maximum number of contributors shall represents fifty percent (50%) of the

total number of GOI members with a seat in the SC.



Ex officio2 members, dialogue partners, and/or observers have the right to assist

sessions or meetings without vote to deliver specific decision-making processes.

International agencies and inter-governmental organizations having climate change

programs and operations in Indonesia may be given particular consideration for ex

officio or observer status.

2.1.3 Roles and Responsibilities

The SC shall have the responsibility for setting general priorities, and strategic direction for

the utilization of funds. It will also provide strategic guidance to the overall implementation

of ICCTF functions, operations and activities.

The SC shall have final responsibility for ensuring that the ICCTF is an effective, quantifiable

and verifiable financial mechanism for addressing climate change mitigation and adaptation.

The SC shall have responsibilities for the following decisions:

Approve project selection criteria for ICCTF activities.

Review funding decisions for all ICCTF activity submissions, including project

proposals submitted by the Government Institutions.

Approve:

ICCTF operating procedures and its revisions as necessary

Annual Work Plan

Budget

Annual Report

Appoint members of the Technical Committee.

Approve the selection of National Trustee.

Appoint Head of the Secretariat.

Promote coordination of ICCTF activities with other national development activities

supported by Development Partners and/or multilateral organizations, ensuring that

ICCTF aligns with domestic and international climate change goals and targets.

2.1.4 Meeting Procedures and Decision-Making Processes

The next elements must be adopted for decision-making processes:

SC meetings shall be held on a regular basis (minimum bi-annually). The frequency of

meetings may vary, depending on the requirements of an effective decision-making,

oversight and the project life cycle.

The Chairperson shall convene SC meetings.

A minimum of one (1) weeks’ notice must be given to all members of the Steering

Committee before the date of the meeting.

2 Ex-officio members functions and rules of procedures shall be determined in the regulations of the SC.



Minimum participation for decisions is required. A quorum consists of the

Chairperson or Co-Chair and at least one member from GOI and one contributor.

Electronic media, such as video conferencing, may be used as appropriate and where

available, when some Committee members cannot be physically present at meetings.

The SC Plenary will normally make decisions by consensus, rather than by majority

voting. However, where a consensus cannot be reached, the SC will undertake a

ballot. In the event of a tied vote, the Chairperson will cast a deciding vote.

To encourage full participation in SC activities and approvals, decision-making rights

cannot be transferred. Thus, delegates of non-attending Committee members do not

have proxy voting rights.

SC members with an interest in a proposed project or representing, or affiliated with

an entity or organization, which is an Implementing Partner for a project under

deliberation by the SC, must declare their interest and will be required to abstain

during the ensuing decision process due to potential conflict of interest.

In the event that a decision must be taken by the SC which cannot be postponed until

the next regular meeting, but does not warrant the calling of a special meeting, the

Chairperson shall transmit to each member a proposed decision with an invitation to

endorse the decision on a “no objection basis” by any rapid means of communication

or consultation.

Where decisions are made outside the regular sitting of the Steering committee:

o Each Member’s written comments on the proposed decision shall be sent to

the SC not less than five (5) working days before the date the Chairman has

called for a decision to be made.

o At the expiration of the time period prescribed for comments, the decision

can be endorsed and recorded in the minutes of the next ST meeting unless

there is an objection.

o If any member raises an objection, the Chairperson shall include the

members’ objection to the proposed decision as an item on the agenda for

consideration at the next SC meeting and should notify all committee

members accordingly.

The minutes of meetings shall be circulated to members within 5 working days of the

Steering Committee meeting and members shall be given 5 working days to

comment from the date of such circulation. These draft minutes shall be formally

approved at the next Steering Committee meeting.

2.1.5 Forum for Policy Dialogue

In consultation with the Steering Committee, the Chairperson shall also convene a separate

policy dialogue meeting at least once in a year with at least two months previous notice. The

agenda for the meeting should be developed in consultation with the three key stakeholder

groups: The GOI, Development Partners and CSOs. The Technical Committee may also

suggest policy dialogues to Steering Committee if necessary.



2.2 Technical Committee (TC) The main task of the TC is to advise the Steering Committee (SC) in all technical matters of the ICCTF.

2.2.1 Mandate

The Technical Committee (TC) mandate is to advise on technical issues, including

reviewing/approving project selection criteria and make recommendations in the selection

of projects.

2.2.2 Committee Members

The composition of the Technical Committee will be determined by ministerial decree (Surat

Keputusan – SK Menteri PPN) on ICCTF. However, the TC members would be a combination

of GOI and independent subject matter experts made up of the following representatives:

The Chairperson will be the Director of Environment, Bappenas

Chairperson of the TC is responsible for coordinating the Committee’s activities and

serving as a liaison between the TC and other ICCTF bodies and staff.

There will be two (2) Co-Chairs of the TC: the Director for Multilateral, Bappenas and

the Director of Funds, MoF.

Representatives from key Ministries will be drawn from Echelon II of MoF, Bappenas, and Line Ministries/ Agencies.

The TC may invite persons it deems necessary to comment on specific activity submissions in addition to receiving input from a Subject Matter Expert-Team3.

The largest financial contributors shall be entitled to sit on the TC, in accordance with

the Grant Agreement between the GOI and the Contributors.

2.2.3 Role and Responsibilities

The Chairperson of the Technical Committee is designated as the National Project Director

(NPD) for ICCTF. The NPD is responsible for monitoring the operations of the ICCTF. The

Technical Committee shall appoint the team leader of the Subject Matter Expert-team.

2.2.4 Meeting Procedures and Decision Making Processes

The following items guide the process thats relates to adopt decisions:

Regular meetings must be held at the minimum once every three (3) months.

The meeting agenda of the Technical Committee shall be prepared by the Secretariat.

Decisions made by the TC meeting are by consensus. If a consensus is not reached,

voting performs decision-making. In order to avoid conflict of interest, members of

the TC do not vote when discussing activities from his/her agency.

The items discussed in the TC meeting will be documented by the Secretariat and the

minutes distributed electronically to all members of the TC.

3 A subject matter expert (SME) team is a group of experts in a particular area or topic.



The distributed minutes of each TC meeting will be accepted at the next sitting of the

TC.

In the event of an urgent situation – the Head of the TC shall make a decision and

send electronically consultation to all stakeholders involved. This action will occur

only if a decision from the TC is required and a meeting is not possible.

The Head of the TC, assisted by the Secretariat, shall distribute official letters or

emails to all members of the TC regarding the proposition for approval. All members

of the Technical Committee shall submit their approvals/disapprovals of the

proposition to the Head of the TC through the same media. Based on the responses

submitted by the TC members, the Head of the TC will produce a final decision.

Voting is undertaken on an exceptional basis if required and considered valid if half

plus one of the TC members or those representing them are present in the meeting

or electronic discussion forum.

In order to avoid conflict of interest, a TC member does not have a vote (abstain)

when discussing an activity proposal from his/her agency.

2.2.5 Investment Windows

Projects submitted to the TC for evaluation will fall into at least one of the following

investment windows:

Land-based Mitigation

Energy

Resilience and Adaptation

The TC, under one management unit, shall undertake inter alia at least three functions:

(a) Provide technical support and inputs on strategic issues and priorities to the SC;

(b) Deliver project appraisal; and

(c) Develop and revise operational guidelines.

The Technical Committee shall also:

(a) Follow-up on the SC meetings to ensure that decisions are implemented, and report back

to the Steering Committee as required, and

(b) Provide liaison and coordination between the Steering Committee, the Governmental

agencies and different stakeholders.

Therefore, for matter of efficiency the TC will be organized through working groups who may

include also:

Representatives from Ministry of PPN and/or Line Ministries including, but not

limited to the National Council on Climate Change, Ministry of Environment, Ministry

of Forestry, Ministry Agriculture, Ministry of Marine and Fisheries, and Ministry

Energy and Mineral Resources. In principle, the represented Ministries should mirror



the composition of the Technical Committee, having members from each respective

sector, and/or Independent experts from technical and scientific knowledge centers

and the private sector.

The Window Working Groups may also include contributor’s representatives if

appropriate.

2.2.6 Subject Matter Experts Team

Subject Matter Experts in the areas of will support the Technical Committee:

Energy Security and Reduction Emissions from the Energy Related Sectors

Land Use, Sustainable Management of Forests Resources and Peatlands,

Deforestation and Forest Degradation.

Resilience, Adaptation, Crosscutting and inter-sectoral measures.

Responsibilities of the Independent Experts include inter alia:

1. Provide expert opinions and independent voice during the project proposal selection

process.

2. Provide technical advice to the Technical Committee during the project selection

process.

2.3 The Trustee

2.3.1 Mandate

The Trustee is mandated to manage funds for the ICCTF. The Trustee assumes full fiduciary

and risk management responsibilities of funds before both the SC and the GOI, and pursuant

laws and regulations.

2.3.2 Appointed Institution

The GOI shall outsource the financial management to conduct functions of ICCTF Trustee,

selecting a nationally established institution through a competitive and transparent bidding

process, in accordance with procurement guidelines, regulations and fiduciary standards.

The Terms of Reference (ToR) and selection criteria for the Trustee shall be submitted to the

SC for review and approval.


The ICCTF Trustee shall manage ICCTF financial resources for projects and activities

approved and work under the financial standards and fiduciary requirements of relevant



international principles and Indonesian regulations. The Trustee shall be held legally

responsible for any misuse of ICCTF funds.

The Trustee shall act under the following principles:

Fiduciary Oversight:

Ensure that ICCTF funds are used:

(i) Pursuant relevant policies, laws and regulations;

(ii) In accordance with agreements between the Contributor and the Trustee;

(iii) Pursuant the decisions of the ICCTF Steering Committee.

Transparency and accountability:

The Trustee shall be responsible for accountably implementing mechanisms. This

includes establishing sound and effective monitoring and evaluation mechanisms and

communicating the results of the M&E to the relevant stakeholders.

Key responsibilities include:

Receive funding from donors: enter into contribution agreements and update the

budget.

Disburse funding to the executing agencies and/or implementing agencies according

to Steering Committee decisions and work with Executing Agency and/or

implementing agencies to determine exact fund transfer modality.

Maintain financial records in accordance with relevant accounting standards;

providing regular financial reports to the Steering Committee; and provide annual

audit reports.

Monitoring and financial assurance of ICCTF activities.

2.4 ICCTF Secretariat

2.4.1 Mandate

The Secretariat is an administrative unit of ICCTF responsible for supporting the Steering

Committee and Technical Committee to ensure effective implementation of objectives,

tasks, and decisions regarding ICCTF performance.

The Secretariat shall be based in Jakarta and established by the Decision of Head of the

Steering Committee. The Secretariat office will be located within the National Planning

Development Agency (Bappenas).

2.4.2 Composition

Personnel to carry out administrative, communications, internal monitoring, and financial

duties and routine tasks outlined in this SOP, will support the ICCTF Secretariat. In addition,



should additional short-term expertise and supported be needed, the Secretariat may

engage external support to accomplish its work and tasks.


The main roles and responsibilities of the Secretariat involve the following activities:

Administrative Support

Communications and Outreach Planning and Internal Monitoring and Evaluation

2.4.3.1 Administrative Support

a. Manage all information technology and logistical arrangements for Steering Committee

and Technical Committee meetings including: invitations, conferences, meeting agenda, and

disseminating of information as well as documenting meeting minutes and decisions and

following up as required;

b. Facilitate the proposal submission process including making standard project document

and tracking the receipt of submissions and stages of review and approval;

c. Provide updates to the TC on the status of proposal submission and approval.

2.4.3.2 Communications and Outreach a. Develop and manage information tools and IT to support consultation, coordination and

management of the ICCTF information flows including maintaining a database to support

operations;

b. Respond to enquiries from stakeholders and general public related to ICCTF goals,

objectives, project processing steps, financing priorities and activities and follow-up as

appropriate with the relevant stakeholders;

c. Elaborate and update the ICCTF website and ICCTF newsletters; and

d. Prepare and implement outreach communication strategy.

2.4.3.3 Planning and Internal Monitoring and Evaluation

a. Develop work plans including operation budget to be submitted to TC for endorsement in

the Steering Committee meeting. Submission is performed 3 (three) months prior to the

commencement of the fiscal year or at other time as necessary;

b. Monitor program implementation progress and provide quarterly updates to the TC for

onward submission to the SC. Updates may include: funding utilization, number of approved

proposals, proposal pipeline and implementation progress; and

c. Support the Technical Committee in monitoring the performance of the National Trustee.

2.5 Executing Agency An Executing Agency (EA) is any governmental agency or organization, which implements

projects with funding from the ICCTF. This agency or organization may propose projects

directly or work on behalf of a project proposer. The Executing Agency may also collaborate



with other organizations in implementation of a project. Where a partnership or

collaboration is undertaken, the PCN and prodoc/PAD shall include a plan for cooperation

with other entities.

The Executing Agencies will be required to:

(i) Maintain an appropriate and adequate financial management system, including

records and accounts, and prepare financial statements adequate to reflect the

ICCTF operations, resources and expenditures related to the activity financed under

the contributions;

(ii) Have the above-mentioned records, accounts and financial statements audited, in

accordance with auditing standards acceptable to the GOI policies and procedures

and in accordance with the Contribution Agreement between GOI and Contributors;

(iii) Implement an appropriate monitoring and evaluation system to ensure that the

activity achieves results and those results are properly verified.

The EA is responsible for the implementation of the activity and the administration of the

project budget. The allocation and provision of funds will refer to the existing fund

channelling mechanism.

3. Project Cycle

3.1 Focus of Project Activities

The goal of the ICCTF is to support the GOI’s efforts to reduce emissions, move towards a

low-carbon economy and facilitate adaptation to the potential impacts of climate change.

The ICCTF operates across 3 priority investment windows: Energy; Land-Based Mitigation;

and Resilience and Adaptation initiatives.

3.1.1 Investment Considerations: Energy

Indicates greenhouse gas (GHG) emission reduction potential.

Promotes technology transfer in low carbon and associated technologies.

Removes barriers for wider dissemination of energy efficient and renewable energy

technologies.



Reward mechanism on energy efficiency and emission reduction.

3.1.2 Investment Considerations: Land Based Mitigation

Potential to reduce deforestation and land degradation.

Promotes carbon sequestration.

Increases resilience of local communities to address climate change.

Does not marginalize or aggravate relations with traditional communities and other

local stakeholders.

3.1.3 Investment Considerations: Resilience and Adaptation

Addresses the vulnerability issue clearly, including reducing the vulnerability and/or increasing the capacity.

Integrates cross-cutting and inter-sectoral measures that will support adaptation activities and accelerate their implementation.

Utilizes appropriate technology for the community.

3.2 Project Selection Criteria

3.2.1 Criteria of Funded Activities

Projects that are funded by ICCTF must follow the following umbrella principles:

Delivers socio-economic benefits to local communities.

Meets respective regional and/or sectoral focus.

Includes component on Training of Trainer (ToT) or capacity building for local

Government and/or local facilitators.

Facilitates financial and technological barrier removal for local innovative

practices/technologies.

Ensures environmental integrity and sustainability

3.2.2 General Programmatic Considerations

The proposal selection procedure shall consider projects that:

Contribute to the national priorities as described in RPJM, ICCSR, and RAN GRK.

Provide beneficial impacts to communities.

Contribute to capacity development of the Government of Indonesia and civil society.

Does not adversely impact the environment or cause/aggravate conflicts with local

communities.

Bridge financial gaps for triggering involvement of private sector or communities.

Follow within investment strategies of ICCTF.



3.3 Terms and Conditions

The following terms and conditions shall apply to all ICCTF contributions: All projects must be approved by SC.

Procurement of goods, works and services financed under the Grants shall adhere to

the PP No.54/2010 to ensure appropriate governance, environmental, and social

safeguards arrangements are established and carried out in accordance with

principles of ownership.

Design and implementation of activities financed by the grant shall prevent and

mitigate undue harm to people and their environment in the poverty reduction

process;

Activities financed by ICCTF grants shall not duplicate sources of funding or other

bilateral or multilateral grants or loans.

Co-financing of activities with other sources of funds, however, are permitted.

3.4 Project Selection Process

General steps of project selection are described as follow activities (see also Figure 2).

1. Step One: Project Proposal Submission. GOI institutions

The Steering Committee shall invite eligible GOI institutions to submit projects for

consideration, while at the same time requesting assistance for reviewing the

proposals to be included into the Yellow Book from directorate units of the

Ministry of National Development Planning/Bappenas. The project proposals

should indicate the preferred investment window.

2. Step Two: Submission of Projects to Yellow Book - Bappenas

The relevant Directorates in Ministry of National Development Planning/Bappenas

evaluate within two (2) weeks whether the submitted projects are in line with the

general development plan of the GOI, specifically utilizing the existing Blue Book

check and registration process. After being approved by the DRPHLN-JM (Blue

Book) process, and checked by the Natural Resources and Environment Deputy,

the submitted proposals will be listed into the Yellow Book.

3. Step Three: Pre-screening and ranking of proposals. Technical Committee

The TC experts will screen and rank the project proposals according to specific

ranking criteria that are in line with the investment window’s general investment

strategy and current ICCTF priorities within three (3) weeks. According to those

criteria the Experts develop a project list in the form of a ranking of the 15 best

projects submitted. The ranked projects are forwarded to the Technical

Committee for endorsement.

4. Step Four: Project Short Listing. Technical Committee/Working Groups



The Technical Committee receives the ranked short list from the Experts, from

each window. The technical committee organizes itself into 3 working groups,

which will deliberate within one (1) week the forwarded proposals respective to

each window. Each working groups will verify the mandate, experience, and

strengths of the applying institution or agency and decide for each project the

following status:

• Recommendation for funding approval

• Further follow up and development of the proposals into full project

documents

• Endorse projects with their respective status

5. Step Five: Project Approval. Steering Committee

The Steering Committee approves, rejects or partially approves the suggestions

forwarded by the Technical Committee within one (1) week.

Table 1 Overview of Project Selection Process

No. Activity Responsible Party Timing Relevant Documents

1 Project proposal submission

Line Ministries / Local Governments / GOI institutions together with Executing Agencies

4 weeks - Letter from Minister or Secretary General

- Terms of Reference or if available Feasibility Study

- Application Letter Template

2 Pre-screening and submission of projects to Yellow Book

Bappenas 2 weeks - All project proposal documents

- Administrative evaluation form

3 Ranking of proposals and technical recommendation

Technical

Committee

(Experts)

3 weeks - Technical Evaluation Form

- Recommendation of short list projects

4 Project Short Listing

Technical Committee (Working Groups)

1 week - Short List Document

5 Project Approval

Steering Committee:

1 week - Approval Documents



2

Figure 2. Flow Diagram of Project Selection Process

LINE MINISTRIES

and

Provincial Government

Submit Proposal:

a. Energy

b. Forestry

c. Adaptation

ICCTF STEERING

COMMITEE

BAPPENAS: Reviewed by Sectoral

Directorats

Blue Book registration process

YELLOW BOOK

Land Based Mitigation

Experts

(2-3 independent experts)

Rank top 15 Proposals

Energy Expert Selection



STEERING COMMITTEE FOR

APPROVAL

Energy Working Group

meeting recommendation

on proposals:

1. Fund project

2. Revise and further

develop

3. Reject

Project selection kick off meeting

Resilience and Adaptation Experts



Land Based Mitigation

Working Group meeting

recommendation on

proposals:

1. Fund project

2. Revise and further develop

3. Reject

Resilience and Adaptation

Working Group meeting

recommendation on proposals:

1. Fund project

2. Revise and further develop

3. Reject

2 weeks

2 weeks

2 weeks

TECHNICAL COMMITTEE

Consolidation meeting to finalize

recommendation to SC

4 weeks

1 week



3.5 Mechanism for Registration of ICCTF approved Projects

Based on the PP No.10/2011, Activities, which are implemented using ICCTF, grant funds

must be registered into the Ministry of Finance (cq. Director of Fund) and recorded in the

GOI budgeting document (DIPA). The Ministry of Finance Regulation No. 06/PMK.02/2009

concerning the Mechanism for the amendments of APBN and amendments of DIPA 2009

provides that a revision can be implemented at any time and reported to DPR later.

The mechanism and steps for project registration and recording activities in the DIPA

document are described in the diagram below.

Figure 3. Registration of ICCTF approved Projects

Treasury Budget Debt Management

Ministry of Finance Implementing

Partner PHASES National

Trustee

Project Document Signing of the

Prodoc / AWP and

Grant Aid

Registration

Agreement

Project Document forwarded to MoF and constitutes the Grant Aid Agreement

Grant Aid

Registration

Application for Registration

Process of Registration

Registration Document

Application for Recording in DIPA ( Planning Bureau )

Process of Recording the Grant in DIPA

Certification of Recording Number

in DIPA

Incorporated in RKA

Process of issuing DIPA

DIPA

Recorded in DIPA

Request to open a Bank Account

Evaluation of Application

Approval to open Bank Account

Opening a Project

Bank Account

.

1

2

3

4

Coordination

Coordination



3.6 ICCTF Financial Mechanism

3.6.1 Project Bank Account Management

The following diagram illustrates and summarizes the process involved in approval to

open an account based on PMK No.57/2007, the application to open an account and the

reporting tasked involved.

Figure 4. Project Bank Account Management

3.6.1.1 Opening a Project Bank Account

The Implementing Partner will be able to open a bank account with approval from the

State Treasurer (The State Treasury is the Ministry of Finance). The approval can be made

by State Treasury Authority which is the Director General of Treasury and Regional State

Request to open an Account

Attach:

1. Copy of Budget Documentation

2. Statement on Use of the Account

Application to

open an Account

Evaluation of

Report

Financial

Reporting

1

2

3

4

Reporting the

Bank Account

Approval to

open an Account

Approval to open an Account

State Treasurer /

State Enterprise Rep.

Central Bank

Commercial Bank

Post Office

Application to open an Account

Attach:


Evaluation of

Application


Reporting on the Account Account Report

Financial Report Financial Report

PHASE M / A / Office

W.Unit (PA/KPA)



Treasury in the Provincial level as the head of Kantor Pelayanan Perbendaharaan Negara

(KPPN)

The request for approval to open a bank account within the framework of the

implementing budget income and expenditure, within state ministries/agencies is

submitted by the Minister/Head of the Agency/Office/Work Unit as the Budget

User/Representative Budget User to the State Treasurer/Representative State Treasurer,

using the form as provided in Annex B5 of the Regulation of the Minister of Finance

No.57/2007, and should include:

a) A Photocopy of the “budget document”; and

b) A Statement on Use of the Account.

In relation with the above, if the condition of the project is that it has not been registered

to DIPA, the line ministry can propose the opening of a project account by attaching the

registration number and grant agreement stating that the project will be registered on

the related line ministry DIPA. The request to open a project bank account in the

implementing partner’s name should be proposed by the related line ministry to the DG

Treasury MOF, by attaching an official letter and related forms according to the MOF

Regulations.

The State Treasurer/Representative State Treasurer at the central level has the right to

reject the request for approval to open an account if the said request does not meet the

requirements as provided above. The letter of approval or rejection by the State

Treasurer/Representative State Treasurer at central level shall be in the form in Annex III

of the Minister of Finance Regulation.

The Minister/Head of Agency/Office/Work Unit as the Budget User/Representative

Budget User must attach the written approval from the State Treasurer/Representative

State Treasurer as a requirement for opening an account at the commercial bank/post

office.

3.6.1.2 Closing a project Bank Account

Once the project is closed both in the substantive and administrative matters, the bank

account can be closed. The remaining balance, from the National Trustee funds

transferred to the account and the interest earned shall be returned to (To be decided by

GOI/BAPPENAS). The closing of the bank account needs to be reported to the State

Treasury of the Authority.

3.6.2 Account Reporting and Financial Report

The Minister/Head of Agency/Office/Work Unit as the Budget User/Representative

Budget User (Pengguna Anggaran/Komisi Pengguna Anggaran - PA/KPA) shall be



obligated to report its income account and/or expenditure account and other accounts to

the State Treasurer/Representative State Treasurer and at the latest five working days

from the date of opening the account.

Following the PMK No.40/2009, the income account and/or expenditure account and

other accounts must be reported and presented in a list of annexes in the Financial

Report of the State Ministry/Agency/Office/Work Unit concerned by using the form in

Annex V of the Minister of Finance Regulations. A list of income accounts and/or

expenditure accounts must be submitted to the State Treasurer/Representative State

Treasurer at the end of each semester.

Based on this list of accounts, KPPN will combine all lists of accounts from all the

Offices/Work Units using the form provided from the Minister of Finance Regulations,

and attach this to the Financial Report of the Central Government at the level of

Representative State Treasurer KPPN at the end of each financial semester.

The general principles that should govern the reporting of financial information include

completeness, transparency, comparability, accuracy and efficiency (UNFCCC 1999a).

3.7 Fund flows of ICCTF Fund flow from donor to trustee and to the respective projects thereafter, is subject to

disbursement triggers which provide checks and balances prior to fund flow.

3.7.1 Managing Contributions and New Commitments

The Trustee receives donor contributions to the ICCTF in a bank account designated by

the Trustee, in accordance with the terms set out in the Contribution Agreement between

the donor and the GOI. All donors financing the ICCTF must enter into an individual

Contribution Agreement with the Trustee. Earmarking of funds to specific activities under

ICCTF is allowed only through the investment window but not to specific projects (for

contributions of more than US$10 Mio). Fund allocation will follow the ICCTF project

selection criteria and mechanism.

The process flow for receiving contributions is as follows: (See Figure 4)

1. Donors should notify the Steering Committee about their interest in contributing to

ICCTF.

2. The Steering Committee requests the Technical Committee to proceed with the

consultation of the Deputy for Development Funding, Bappenas.

3. The Technical Committee consults the Deputy for Development Funding, Bappenas,

regarding the suitability of the source of funds, the allocation of funds and whether

the contribution is in line with the general policy for development funding of GOI.



4. Upon approval of acceptance of the donor’s contribution, the Steering Committee

will request action of the Trustee.

5. The Trustee will develop a Contribution Agreement4 with the donor, which will

subsequently be approved by the Secretariat. The agreement should set out:

That the contribution shall be used exclusively for the purposes and objectives

of the ICCTF;

The terms and conditions under which the funds are made available and used,

and all reporting requirements;

The total amounts that contributors intend to make available as a grant to the

ICCTF.

The Contribution Agreement is signed between the donor and the Trustee.

6. The donor deposits funds into the bank account designated in the Contribution

Agreement.

Figure 5. Flow Diagram of Receiving Contribution

4 The necessity of a broader Framework Agreement signed between the GOI and donor will be decided on a case-by-

case basis.

Agreement and

signing of MOU

Funds

Transfer

1

2

3

5

Financial

Agreement

Agreement

Clarification and

Documentation

National

Trustee

Sign Financial

Agreement

Transfer Funds

PHASE Steering

Committee Technical

Committee Head of

BAPANAS Donors

Clarification

Action

Request

4

Notification of

contribution

Notification

Request for

Action

Sign Financial

Agreement



3.7.2 Disbursing Funds

The Trustee shall support operations of the Secretariat, the Steering Committee and the

Technical Committee as necessary and appropriate subject to budget provisions approved

annually by the Steering Committee. These activities are covered in further detail under

the ICCTF project document.

Subject to availability of funds and following the decisions of the Steering Committee, the

Trustee shall disburse funds to Executing Agencies (EAs) on a periodic basis and upon

request.

3.7.2.1 Preparation of project

For all Steering Committee approved projects:

1. The Secretariat will coordinate and support the EAs to meet all relevant

Government regulations, including PP No.10/2011, Permeneg PPN No.5/2006,

registering projects with the DIPA and/or ensuring inclusion in the financial report

of the central Government (LKPP).

2. The Trustee requires a written request from the GOI to enter into a Letter of

Agreement (LOA) with EAs to disburse funds. A signed copy of the minutes of a

Steering Committee meeting OR a formal letter from the Head of the Technical

Committee is required, specifically requesting the Trustee to enter into an LOA

with the respective EA following relevant rules and regulations.

3. If the Steering Committee approves a project with a proposal that needs

improvement, the Secretariat together with the Trustee will support the EA to

improve the project proposal. The final project proposal should be of sufficient

quality for the Trustee to be able to enter into an LOA with the Executing Agency.

The minimum requirement for a project proposal is an AWP and clear

management arrangements. This would usually consist of a Project Board, an NPD

and if necessary, a Project Management Unit. The LOA will be supported by

attachments including an ICCTF Project Document; a Description of Services; and a

Schedule of Services, Facilities and Payments. The LOA together with the

attachments ensure that the financial reporting and management capacity of the

EA and IAs have been documented a prerequisite for any funding from ICCTF.

4. The EA and the Trustee will sign an LOA which includes reference to the project

activities and roles/responsibilities of both the EA and the Trustee of ICCTF. The

LOA will refer to or be annexed with a project proposal including clear outputs, an

AWP and management arrangements. The LOA will be formally acknowledged by

Bappenas, in a manner to be developed on a case by case basis.



3.7.2.2 Fund disbursement process

The process flow for Fund Disbursement Process is as follows: (See Figure 5)

1. The Steering Committee approves ICCTF funding of the accepted projects and

advises the Technical Committee

2. The Steering Committee advises the Trustee that funds should be made available

for the project.

3. The Trustee and the respective Line Ministries, GOI institutions and Local

Governments develop and sign the Letter of Agreement (LoA).

4. The respective Line Ministries, GOI institutions and Local Governments will submit

a Quarterly Work Plan, Fund Request Form and Quarterly Report to the Technical

Committee.

5. The Technical Committee will check and the Secretariat will verify the submitted

documents for completeness and compliance with the agreement as outlined in

the LoA.

6. The Technical Committee and Secretariat notify the approval of the payment to

the Trustee.

7. The Executing Agency will make funding requests on a quarterly basis5 in

accordance with the Fund Request Form6. Funds will only be transferred after the

project progress report for the previous quarter shows implementation to be

adequate and is signed off, together with the Fund Request Form, signed by the

Chairperson of the Technical Committee (NPD of ICCTF).

8. The Trustee will transfer funds to the respective Line Ministries, GOI institutions

and Local Governments or Executing Agencies upon receiving notification from the

Technical committee.

5 Subject to EA’s capacity and performance assessment results

6 Refer to PMIG for further details on FACE form



Figure 6. Flow diagram of Fund Disbursement Process

3.7.2.3 Channelling Funds to Regions

Following the PMK No.168/2009 and PMK No.169/2009, the fund disbursement process

to local government will follow the on-granting mechanism as in the diagram above.

Refer to Figure 6 Channelling Funds to Regions

The process flow for Channelling Funds to Regions is as follows: (See Figure 6)

1. Local government’s Project Proposal is submitted to the ICCTF Steering Committee

for approval.

Approval

of

Projects

Payment Request

Funds Transfer

1

2

3

5

Project Approval

Request

for

Funding Payment

Transfer Funds

Receive Funds

PHASE National Trustee Steering Committee Technical Committee Line Ministries

(Executing Agencies)

Follow up

of

Approved Projects

Signing of LOA Financial

Agreement

Project Verification Submit Request

Quarterly WorkPlan

Verification and

Request transfer

of Funds

4



2. After approval of the project by the Steering Committee, the Technical Committee

will request the National Trustee to deliver the funds to the Ministry of Finance

(KPPN).

3. The Ministry of Finance through Director General of Budget (Dirjen Anggaran) will

prepare agreement documents (Naskah Perjanjian Kerjasama) to be signed with

the local government body.

4. The signed document will be forwarded to the Director of Fund to be registered by

MOF DIPA APBN.

5. Ministry of Finance, through the Director General of Treasury (Dirjen

Perbendaharaan), then transfers the funds to the local government’s bank

account.

6. On receipt of funds, the Local government will register their received grant with

the realized Provincial and District Budget (APBD).

Figure 7. Channeling Funds to Regions

Approval of

Project

Proposal

Funds

Transfer

1

2

3

Project

Selection

Follow up of

Approvals

Receive Funds

into

Local Bank

Account

PHASE Steering

Committee Technical

Committee Local

Government

Project

Documentation

Project

Proposal

Agreement

Documented

and

Stated in DIPA

MOF (DG Budget)

Disperse Funds

National

Trustee Ministry of

Finance

Agreement

Documented

and

Stated in DIPA

APDB

Disperse Funds

to

DG Treasury



4. Monitoring and Evaluation

ICCTF shall be subject to robust Monitoring and Evaluation, M&E, to ensure that high

standards of quality and accountability are maintained, and to ensure that ICCTF systems

promote learning that improves fund activities and decision-making processes.

Project supervision and monitoring will be in accordance with internationally recognized

standards, policies and procedures of development partners. Supervision and monitoring

will be undertaken at the following levels:

a. Steering Committee monitoring will be undertaken by the Technical Committee

support by the Secretariat and reported back to the Steering Committee.

b. The National Trustee and Executing Agencies shall submit reports on quarterly progress

documenting progress toward achieving results against approved performance indicators

and financial status.

Autonomous individuals, teams and organizations from the GOI shall undertake

independent evaluation of ICCTF operationally closed projects. Results of such

evaluations shall be shared with the Steering Committee through the Secretariat.

The Technical Committee maintains an oversight of the ICCTF operations through The

Secretariat, and will provide regular reporting to the SC to ensure:

ICCTF resources are used by the recipient organizations solely for the purposes

approved by the SC and as outlined in each respective LOA between the EA and

Trustee.

EAs observe the ICCTF’s established financial management procedures, including

financial reporting, accounting, auditing, and transparency clauses.

Irregularities are report to the Steering Committee, and take the appropriate

corrective action is taken.

4.1 Monitoring of ICCTF

Based on the GOI’s ICCSR and other key documents, a monitoring framework that aligns

the overall vision of the ICCTF with programmatic indicators and baseline information is

to be developed. The monitoring framework will aid in the following activities:

To assess the efficiency of the ICCTF in stimulating and generating interest to develop

and implement projects that are consistent with the objectives of the ICCTF;

To measure the effectiveness of the ICCTF in meeting its objectives;

To enable ICCTF entities to monitor aid flows, project activities and achievement of

results overall, for ICCTF-financed activities. This will ensure that funding or

activities can be adjusted as necessary;



To document, provide feedback, and generate information to disseminate knowledge

and promote learning arising from the ICCTF and stimulate replication of project

initiatives;

To understand the developmental impact of the ICCTF portfolio within the overall

climate change efforts of other parties in Indonesia.

In general, ICCTF through the Secretariat with guidance from the Technical Committee

implements 2 types of monitoring activities, Administrative and Financial Monitoring and

Programmatic Monitoring. The Administrative and Financial monitoring will be

implemented to ensure that the administration and financial activities of the whole

project and activities are in line with the GOI regulation (including Perpres No.54/2010

regarding procurement), and other national regulatory requirements, and donor

requirements.

A set of administration and financial monitoring activities has been developed to promote

the learning process within stakeholder groups. Two documents are available, the first is

a Self-Assessment Administration and Financial Monitoring Form and the second is an

Administration and Financial Monitoring Form. The forms provide a checklist of required

activities and procedures that should be followed. The forms are to be completed by the

ICCTF Secretariat staff and also by the Executing Agencies.

Sample forms are provided in the Annexes D and E.

For Programmatic Monitoring, a Monitoring Sheet has been developed to assist in

recording the activities and achievements of the program implemented by ICCTF and

Executing Agencies. Programmatic Monitoring is conducted quarterly by Secretariat with

guidance from Technical Committee. From the information recorded on the monitoring

sheet, the Secretariat compiles the progress status of the project base output and

indicators.

A sample form is provided in the Annexe F.

4.2 Evaluation Whenever necessary and as required, the ICCTF will implement a progress and program evaluation. In the evaluation of programmes and projects, the ICCTF considers compliance to the following principles:

Relevance Effectiveness Efficiency Impact Sustainability



4.2.1 Relevance

The extent to which the aid project activity is suited to the priorities and policies of the target group, recipient and donor is to be considered. In evaluating the relevance of a programme or a project, it is useful to consider the following questions:

To what extent are the objectives of the programme still valid?

Are the activities and outputs of the programme consistent with the overall goal and the ability to achieve its objectives?

Are the activities and outputs of the programme consistent with the intended impacts and effects?

4.2.2 Effectiveness

This is a measure of the extent to which the aid project activity attains its objectives. When evaluating the effectiveness of a programme or a project, it is useful to consider the following questions:

To what extent were/are the objectives achieved or likely to be achieved?

What were/are the major factors influencing the achievement or non-achievement of the objectives?

4.2.3 Efficiency

Efficiency measures the outputs, both qualitative and quantitative, in relation to the inputs. It is an economic term which signifies that the aid project uses the most cost effective resources possible in order to achieve the desired results. This generally requires comparing alternative approaches to achieving the same outputs, to confirm the most efficient process has been adopted. When evaluating the efficiency of a programme or a project, it is useful to consider the following questions:

Are activities cost-efficient?

Are objectives achieved on time?

Is the programme or project being implemented in the most efficient way compared to alternatives?

4.2.4 Impact

Impact is the positive and negative changes produced by a development intervention, directly or indirectly, intended or unintended. This involves the main impacts and effects resulting from the activity on the local social, economic, environmental and other development indicators. The examination of impact should be concerned with both intended and unintended results and must also include the positive and negative impact of external factors, such as changes in terms of trade and financial conditions. When evaluating the impact of a programme or a project, it is useful to consider the following questions:

What has happened as a result of the programme or project?

What real difference has the activity made to the beneficiaries?

How many people have been affected?



4.2.5 Sustainability

Sustainability is concerned with measuring the benefits of an activity and if the activity is likely to continue after donor funding has been withdrawn. Projects need to be environmentally, as well as financially sustainable. When evaluating the sustainability of a programme or a project, it is useful to consider the following questions:

To what extent did the benefits of a programme or project continue after donor funding ceased?

What were the major factors which influenced the achievement or non-achievement of sustainability of the programme or project?

4.3 Monitoring Guidelines The ICCTF monitoring guidelines are consistent with, and contribute to, the GOI’s strategy

for monitoring of climate change as outlined in the ICCSR. The monitoring guidelines will

support cohesive data collection and reporting on achieved results across the entire range

of GOI national climate change initiatives. Conjunction with the GOI’s strategy, there is a

list of ICCTF indicators to assist in measuring the achievement of the ICCTF progress.

The list of “Living Indicators” can be seen below:

4.3.1 ICCTF Indicators

1. To Attract, manage and mobilize funding

a. Availability of the fund to support Indonesia GHG emission reduction effort

b. Number of project supported by ICCTF

c. Amount of funding delivered to the project by ICCTF

2. To contribute and effectively to the mainstreaming of climate change issues in

national, provincial and local development planning

a. Number of policy issues, regulation issues (on a national, provincial and local

level) generated related to climate change, supported by the ICCTF.

b. Number of event of the mainstreaming of climate change issues in national,

provincial and local level conducted directly by ICCTF and through project or

activities supported by ICCTF

c. Number of regions that have improved climate change and related capacity in

human resources supported by ICCTF.

3. To contribute and effectively achieve the implementation of mitigation and

adaptation climate change initiatives

Outcome:

a. GHG emission reduction rate

b. Number of laws, policies, agreements, or regulations addressing climate change proposed, adopted, or implemented as a result of ICCTF support



c. Number of people receiving USG supported training in global climate change including framework convention on climate change, greenhouse gas inventories, mitigation, and adaptation analysis

d. Energy and materials savings due to improved practices as a percentage of overall country’s consumption

e. Quantity of greenhouse gas emissions, measured in metric tons CO2 equivalent, reduced or sequestered as a result of USG assistance

f. Quantity of greenhouse gas emissions, measured in metric tons of CO2 equivalent, reduced or sequestered as a result of USG assistance in natural resources management, agriculture, and/or biodiversity sectors

g. Energy saved as a result of USG assistance 3.1. Land Based Mitigation window

a. Forest area (ha) managed in a sustainable way

b. Land area (ha) applying Non-Burning Land Clearing/pembukaan lahan tanpa

bakar (PLTB)

c. Number of forest replantation supported by ICCTF

d. Number of people with increased adaptive capacity to cope with impacts of

climate variability and climate change

3.2. Energy window

a. Number of reduction the income elasticity of energy demand

b. Number of reduction of the share of oil in Indonesia’s primary energy supply

mix by project supported by ICCTF

c. Number of the shares of other new renewable energy technologies (including

biogas, biomass, micro hydro, solar PV, and wind) through the project

supported by ICCTF

d. Facilitate financing of low carbon energy supply technologies

e. Number of low carbon technology generated through the project supported

by ICCTF

f. Number of improved regulation and policy on climate change generated by

activities supported by ICCTF

3.3. Resilience and adaptation window

a. Number of assessment, study related to climate change supported by ICCTF

b. Number of documentation and lesson learn on climate change codified and

shared to public supported by ICCTF

Further, Development Partners may be part of the M&E process as requested and

appropriate.

4.3.2 Key Monitoring & Evaluation responsibilities of the ICCTF Secretariat

For all ICCTF activities, the first line of responsibility for M&E rests with the Executing

Agency. To monitor the activity of EAs, the Secretariat with direction from the Technical

Committee shall:



Ensure all standard Government and Trustee M&E requirements are met;

Establish the M&E standards and templates, to be used by the EAs. Such standards

and tools shall be developed in consultation with the Technical Committee,

approved by the Technical Committee before use and incorporated into funding

agreements;

Provide technical support to implementing entities, in the design and

implementation of M&E systems;

Verify that implementing entities are conducting M&E activities, as per signed

funding agreements;

Receive M&E reports from EAs, for review and synthesis into ICCTF performance

assessments at the portfolio level and for presentation to the Steering Committee,

as part of the annual reporting cycle; and

Take appropriate follow up action on behalf of the Steering Committee where

M&E reporting is inadequate or does not meet the standards established by the

ICCTF.

Conduct its own evaluation of an activity, or cross cutting theme affecting multiple

activities; and

Commission independent studies, reviews and evaluation. The Secretariat shall be

allocated a budget to support such activities.

4.4 Communication

The ICCTF shall be managed in accordance to the principles of transparency and

accountability. In order to promote transparency, the Secretariat shall design a

Communications Strategy to ensure that all relevant stakeholders have access to

information regarding the functioning of the ICCTF, including information about

Contributions, funding allocation decisions, process to apply for financing from the ICCTF,

Projects and activities financed by the ICCTF, governance mechanisms and other relevant

information.

As part of the Communications Strategy, the Secretariat shall establish a complaints

handling mechanism for activities funded by the ICCTF. This system shall manage and

respond to all allegations of corruption, fraud or misuse of ICCTF funds.

4.5 Reporting on Projects Funded by ICCTF

Reporting on achieved outputs and results/outcomes for ICCTF will mostly draw on

(individual) project-specific Monitoring and Evaluation (M&E) data. Where necessary, the

M&E framework will also refer to selected elements from more comprehensive

monitoring frameworks, e.g. from within sectors as established by the GOI or other

stakeholders involved in the M&E of climate change activities.



The M&E framework may include indicators for inputs, processes, outputs and outcomes,

as well as defined quality standards linked to the broader climate change agenda within

Indonesia.

The following is a list of key documents used/developed for M&E of projects funded by

ICCTF:

Table 2 ICCTF Project M&E Key Documents

7 Frequency will depend on the results of EA’s capacity and performance assessment

8 Frequency will depend on the results of EA’s capacity and performance assessment

No Document Used By When To Whom/further action

1 Quarterly Progress Reports (QPR)

EA Every quarter Technical Committee for approval Trustee for fund disbursement

2 Quarterly Work Plans (QWP)/ Fund Request Form

EA Every quarter Technical Committee for approval Trustee for fund disbursement

3 Summary of Quarterly Report

Secretariat 2 weeks after the end of each quarter

Technical Committee and Steering Committee

4 Field visit report Secretariat and/or Trustee

Every 3 or 12 months7

Technical Committee

5 Spot check report

Secretariat/Trustee Every 3 or 12 months8

Technical Committee

6 Project Annual Review Report

EA Per annum Technical Committee for approval -> Trustee for fund disbursement

7 Project Annual Financial Report

EA Per annum Technical Committee for approval Trustee for fund disbursement

8 Final project report/Fund Request Form

EA Within 1 month following year of financial closing

Technical Committee for approval Trustee for fund disbursement Secretariat for approval

9 Evaluation report

External evaluator, managed by Secretariat

Mid-term and final

Technical Committee for approval Trustee for fund disbursement to present to SC



1. Quarterly Progress Reports (QPR)

An activity results quality assessment shall record progress towards the completion of

key activity results, on pre-defined quality criteria in the AWP of the specific project.

The assessment shall capture feedback from the beneficiary perspective, as well as

information related to timeliness and resource usage. The QPR should also include a

section on issues and risks encountered by the project. The QPR should be approved

and signed by the EA representative (usually the NPD of the project).

2. Quarterly Work Plans (QWP)/Fund Request Form

Based on the approved AWP of the project, the EA shall present the QWP of the

project and the estimated amount of funds required, using the Fund Request Form.

The Fund Request Form must be signed by the EA representative (usually the NPD of

the project).

3. Summary of Quarterly Report

With guidance from the Technical committee, the Secretariat will prepare Summary of

Quarterly Report and submit the report to the Technical Committee. The report will

summarize the progress of ICCTF activities including implementation of ICCTF funded

projects.

4. Field Visit Report

The Secretariat and/or Trustee carry out Field visits on EA and IA activities to review

and validate QPRs.

5. Spot Check Report

Spot checks will be carried out on EAs and IAs to monitor the project implementation

in both substantive and administrative matters, but mainly focusing on the financial

aspects.

6. Project Annual Review Report

As a minimum requirement, the Annual Review Report shall be consistent with the

quarterly QPR format and cover the full year with updated information for each

element of the QPR, and include a summary of results achieved against pre-defined

annual targets at the output level. The Annual Review Report also reports on actual

and projected project expenditures.

7. Project Annual Financial Report

For the project financial report, all project expenditures during one fiscal year

including all annual financial statements must be stated. As for the project

implementation, expenditure implemented by other responsible parties need to be

clearly identified in the report to facilitate the audit process.

8. Final Project Report and Final Financial Report / Final Fund Request Form

After the project ends, the EA will develop the final project report of all activities and

the final financial report / final Fund Request Form. The final project report will cover

the substantive achievement of the project's output, problems and lesson learned, as



well as recommendations to sustain the implementation of the programme/project.

This final report will be submitted to the Secretariat.

9. Evaluation Report

An independent expert appointed by the Technical Committee will assess each project

funded by the ICCTF. The objective is to evaluate the impact and effectiveness of the

interventions by EAs and IAs. Evaluations will take place at the mid-term of the

project, and also upon completion.

4.6 Reporting to donors

The Technical committee through The Secretariat and Trustee shall provide to the Donor

all or parts of the following reports, prepared in accordance with relevant accounting and

reporting procedures:

From Secretariat: An annual status report of ICCTF progress for the duration of the

Contribution Agreement, as well as the latest available approved budget.

From Trustee: An annual Combined Delivery Report (CDR) as of 31 December

every year to be submitted no later than 30 June of the following year.

From Trustee: Within six months after the date of completion or termination of

the Agreement, a final report summarizing programme/project activities and

impact of activities as well as a Combined Delivery Report (CDR) signed by Trustee

and IPs (Chairperson of the Technical Committee).

The Chairperson of Steering Committee or Chairperson of Technical Committee

signs the reports provided by the donor.

Whenever required, the Secretariat can provide quarterly financial report

and quarterly progress report to the Donor.

Figure 8. Flow Diagram of ICCTF Monitoring and Evaluation

ICCTF Steering

Committee

ICCTF

Technical Committee

ICCTF Secretariat

Trustee

3.Reporting

2. Verification

5.Reporti

6.

1.Reporting 7.Reporti

4.Monitoring

8.Guidan

Donor

Annu

al

Quarterly

Report

Executing

Agencies



4.7 Audit

Auditing is an integral part of the administrative and financial management of ICCTF, and

ICCTF activities will be audited regularly and be based on and reflect the EA’s capacity and

performance assessment.

Activities in excess of 100,000 USD implemented by Bappenas, the ICCTF Governance

Entities, the Secretariat, EAs and IAs, are eligible to be audited by the Financial

Development Controller (BPKP), to ensure that the implemented activities are based on

the appropriate regulations. These audit reports are expected to provide assurance

related to the following broad areas-during a one-year period from 1 January to 31

December.

Components that may be audited:

Work plan;

Project progress report and rate of delivery (PP);

Financial Management (FM);

Procurement of goods and/or services (PR);

Fund disbursement and project expenditure;

Management and use of equipment and inventory (EQ);

Human resource selection and administration (HR);

Other payments related to the project, such as project closure and asset transfer.

The Auditor will also comment on the implementation status of the prior year's audit and

recommendations based on the audit. The result of these audits will be submitted to the

NPD and Trustee.

The body responsible for auditing activities implemented by Trustee will be an external

auditor, selected through a competitive process in accordance with the Presidential

Decision 80 of 2003 on Procurement. The terms of reference and the scope of the audit

shall be submitted for review and approval by the Steering Committee (copied to the

Secretariat). The Trustee audit report shall be submitted to the Steering Committee no

later than three months after the end of the financial year.

Statement of expenditure/Combined Delivery Report (CDR);

Project (ICCTF) Accounting System;

Control mechanism and responsibility for the implementation of the project;

Payment procedure and monitoring the implementation of the procurement of

goods and services;

Statement of Assets and Equipment;

Agreement and procedure of the Cash Position.



All members of the Steering Committee, including Contributors, shall have the right to

request additional project audits, by external auditors. Should the request come from

Contributors, the Contributor shall finance the additional audits. Should the audit request

come from other members of the Steering Committee, a decision of the SC shall be made

to determine whether the additional audit should proceed and financed from which

sources.

The Chairperson of the Steering Committee, on behalf of the GOI as Trustee, shall be

responsible for ensuring that the relevant parties (for example, the Executing Agency or

the Secretariat) are following up on the audit findings. Should the relevant party being

audited receive the same qualified audit finding in consecutive financial years, the

Chairperson of the Steering Committee, in consultation with its members and relevant

parties in Bappenas and Ministry of Finance have to right to take action against the

parties that are the subject of the adverse audit finding.

5. Assets Management

The mechanism for assets management should follow the existing regulation on asset

transfer and management refers to PP 6/2006. The entire asset that procured by selected

project will be directly become the state assets and shall be managed and maintain based

on the existing regulation.

The transfer of assets can be done either during the implementation of the project or at

the closing stage. If the transfer of asset is made at the project closing, asset inventory

should be prepared 3 months before the project completion and asset transfer should be

finalized within 1 month after project completion. If the transfer of assets is made to the

GOI during the project implementation, the Government should provide maintenance

funds for the assets until the project has ended.

The asset registration process for the Government will involve the relevant new

regulations.

6. Project Completion

The process of the project closure begins when a project delivers its planned outputs, or

when the decision is made to cancel or close a project. A project is financially closed when

all financial transactions have been reported and all accounts are closed. A project must

be financially closed as soon as possible, but no later than 6 months after it is

operationally closed.



The Letter of Agreement (LoA) will indicate the project duration and if there is a need to

extend a project. This should be done in the form of a revision of the Letter of Agreement

or approval of a revised work-plan for the new period if no other major changes to

outputs occur in addition to the Letter of Agreement.

This process includes a review of the final project cycle, as well as an end-of-project

review, closure, hand-over and policy recommendations for sustainability in the future, if

they have not already been addressed. The process begins when a project delivers its

planned outputs, or when the ICCTF Steering Committee makes a decision to terminate a

Project. The focus of this process is on evidence of completion, lessons learned, benefits

tracking, and necessary handovers.

The following are some recommended “good practices” based on lessons learned of the

project completion as follow:

a) Ensure the appointed Project Manager and the Executive of the Project Board are in

place through the Closing a Project process.

b) Give adequate importance to maintaining Project Files, including all documentation

and records referred to above such as the “Follow up Actions” statement of the

Project Manger, in order for final records being available for both audit and

evaluation oversight compliance.

c) Keep all relevant documents for the audit evaluation purposes.

d) Capture and keep a running list of Knowledge Products produced by the project and

ensuring their proper transfer to project beneficiaries and national counterparts.

7. Policy Dialogue

In consultation with the Members of the Steering Committee, the Chairperson shall also

convene separate policy dialogue meetings to discuss key issues in climate change, on an

ad hoc basis. The issues discussed shall be based on the demand from stakeholders and

agenda for the meeting shall be developed in consultation with the other key

stakeholders.

Indonesian Climate Change Trust Fund SOP Annexes


ANNEXES

A. Investment Strategy Summary – Land Based Mitigation Window

Objective

ICCTF aims to contribute to Indonesia’s efforts to reduce emissions from deforestation and

forest degradation while advancing efforts toward efficient land uses and sustainable forest

resources management.

Implementation Strategies

Strengthening institutional capacity and forest governance reform (institutional &

governance)

These efforts facilitate the development of policies, legal, financial and institutional

framework related to land-based sectors; support the development of land-based emission

monitoring system; support the development of FMUs (KPH), support activities such as

mapping and synchronization of cross-sectoral land mapping; facilitate activities for

developing various finance instruments, including local trust funds; support cross-sectoral

and landscape based planning exercises; promotion of payments for environmental services

and other equitable benefit-sharing arrangements; and building capacities of indigenous

peoples and local communities.

Improving information system and investments in measured emission reduction from

sustainable land-based activities

These efforts could range from supporting research and information management related to

forestry and peatland activities; facilitating land-based GHG inventory; facilitating the

development of national baseline, supporting activities on restoration and sustainable

management of degraded forests and landscapes; enhancing improved land management

practices, including SFM and sustainable agricultural practices on peat areas; supporting

conservation activities to avoid emission from deforestation, and promotion of forest and

chain of custody certification.

Investments outside the forest sector necessary to reduce the pressure on forests

(direct development actions

These efforts include rural development and social and economic infrastructure programs

alternative livelihood and poverty reduction opportunities; agricultural investments in the

context of rationalized land-use planning; and agricultural intensification in the context of

enhancing carbon sequestration such as promoting smallholder agro-forestry system.

Investment Strategy Under ICCTF Umbrella Principles



ICCTF Umbrella Principles

Window Specific Investment Strategy

Socio-economic impacts and local community benefits

• Alternative livelihood which could contribute to conserving existing carbon stocks as well enhances carbon sequestration and other co-benefits e.g. from agro forestry garden.

• Test various types of finance instruments (e.g. blended finance instruments, support local trust funds)

Focus on specific geographic areas and sectors

• Supporting the development and implementation of Local Action Plans/RAD-GRK

• Supporting the development of Fumes (KPH)

Training and capacity building

• Improve capacity of local government/extension agents (socialization, Tot, MRV)

Barrier removal • TA for access to funding and overcome technical barriers • Appropriate financial incentives for action

Environmental integrity and sustainability

• Mainstreaming resilience /adaptation activities (human vulnerability index)

• Maintaining environmental services (biodiversity, watersheds etc.)



B. Investment Strategy Summary – Energy Window

Objective

ICCTF aims to contribute to the improvement of energy security and the reduction of GHG

emissions from the energy sector in Indonesia


Facilitate financing of low- carbon energy supply technologies

These may include financing of feasibility studies, support regulatory/policy making, pilot

projects for new technologies, time-shifting of demand loads, providing small amounts of

equity, integrating CC into decision-making, tariff restructuring and better incentive scheme

for renewable energy power producers, and building community awareness.

Promote the implementation of energy efficiency

These will include strengthening building codes and standards, benchmarking and labelling,

and improving incentives to accelerate the uptake of new energy-efficient technologies, as

well as promotional measures to encourage the establishment of energy service companies,

initiatives to expand public education, and policy support measures.




Socio-economic impacts and local community benefits

• Support access to energy in rural/remote areas. • Focus on small scale and local energy resources such as

- Micro hydro - Biogas - Integrated Solar PV

Focus on specific geographic areas and sectors

• Focus on Energy Efficiency in Cement, Pulp & Paper, and Steel Industries.

• Improved Energy Efficiency program in Residential and Commercial Building at the cities.

• Improved solid waste management at provincial and district level • Improved land transport system

Training and capacity building

• Technical Assistance to enhance knowledge of local human resources

Barrier removal • Optimalization of using local components and appropriate technology.

• Create appropriate financial incentives.

Environmental integrity and sustainability

• Maintaining environmental services (Watershed, Biodiversity). • Reduced government fossil fuel subsidy.



C. Investment Strategy Summary – Resilience and Adaptation Window

Objective

ICCTF intends to prepare Indonesia’s national and local institutions, as well as vulnerable

communities, for the current and possible future impacts of climate change. These include

improved planning and resource management, and expanding coordination to deal with

inter-sectoral and cross-cutting issues.


Resilience-enhancing initiatives under the ICCTF will be focused initially in the areas of agriculture, health, water resources, and marine & fishery. The following implementation strategies are defined to achieve this outcome:

Enhance the dissemination of climate information Enhance the quality and relevance of climate change related information from a user

perspective. This includes timely and tailored information being provided to farmers, fishing

communities and health workers, so they can anticipate and act accordingly to mitigate

risks.

Increase capacity of analysis and adaptation strategies

Improve and refine vulnerability analysis in priority sectors, focusing on hotspots of expected

negative impacts; integrates cross-cutting inter-sectoral measures that will support

adaptation activities and accelerate their implementation, develop and implement

sustainable adaptation strategies in vulnerable sectors and regions, and continuously

conducting proper learning and knowledge management. The critical adaptation actions

have to occur at the local level.




Delivers socio-economic benefits to local communities

• Proper method and process for needs assessment and identification of enabling and disenabling environment for adaptation is conducted prior to designing and implementing action

• Providing timely and tailored information to community of most affected sectors and region such as agriculture, fishery and coastal health, and water resources



Meets respective regional and/or sectoral focus

• Developing detail adaptation action at sector and bioregion level (producing National Adaptation Program of Action/NAPA)

• Improving capacity of local government and local academia in

conducting vulnerability assessments and developing

adaptation scenario and vulnerability at district level especially

on most vulnerable regions and sectors.

• Improving system and capacity of local government and institutions (university, CSO, private) in disseminating information of climate forecast effectively to end-user in agriculture, fishery, and health sector

• Supporting several pilot projects in learning exchange network, climate insurance index, flexible cropping pattern, best adaptation practice at village level, decentralized and participatory water management

Includes component on Training of Trainer (ToT) or capacity building for local Government and/or local facilitators

• Increasing capacity of local government and academia in

conducting needs, impact and vulnerability assessment,

learning and knowledge management, conducting vulnerability

assessment, developing adaptation scenario, mainstreaming

climate adaptation into regional development plan

Facilitates financial and technological barrier removal for local innovative practices/technologies

• Encouraging policy for comprehensive support for adaptation, ranging from financial assistance and climate insurance, and creating market for commodities, with priority given to small scale farmers, fishers, and marginalized communities.

Ensures environmental integrity and sustainability

• Bioregion perspective is strongly considered in a cross-cutting intersectoral adaptation plan

• Supporting identification and up-scaling of technology application, and reducing mal-adaptation, such as increasing use of fossil fuel to manage flood, drought and fishing during extreme events



D. Administration and Financial Management Self-Assessment Form Indonesia Climate Change Trust Fund Administration and Financial management Self Assessment Monitoring Form Name Executing Agency: Contract Number: Start Contract: Date of Review: To whom it may concern, related to the attempts to always carry out the accountable and transparent programme and to facilitate the audit process later on, we would like to request you to fill out the following form, in accordance to your condition right now. The results from this form will be used shared learning and to improve the quality of implemented administration and financial. Thank you for your cooperation.

No Description Yes No Explanation

I Human resources systems

A Organogram

B Job desk/ToR

C

Documentation of selection/recruitment process (Presidential Decree No. 80/2006), including advertising, applicant list, CV, interview and written test result are comply with the requirement

D Personnel contract including salary amount

E Copy cover of the bank book

F Timesheet

G PMU staff report

II Procurement systems

A Policies and procedures of Presidential Decree No. 80/2006

B Procurement plan

C Term of reference

D Request

E Verification

F Approval

G Recipients

H Assets inventory: Tag, Label, Serial Number of goods

III Travel

A Travel plan

B Term of reference

C SPPD (Duty assignment letter)




D Travel authorization (By NPD)

E Travel arrangements, air, land, sea, domestic, international

F Invoice of ticket payment from vendor

G Ticket and boarding pass

H Travel reports

IV Workshops and training, Minimum standard administration

A TOR, Agenda, Budget

B Invitation, Participant List

C Resource person, CV of resource person

D Selection of venue, 3 quotation, agreement with the hotel

E SPPD (Duty assignment letter; if the meeting conducted outside the city / the participant coming from outside the city)

F Report, Minutes of meeting

G Facture/invoice/bill/receipt/proof of payment

V Filling system (Consistent, easy to find)

A To what extent do the filing system implemented, how the categorizing?

B Standard correspondence, Letter, Email, Fax, Signatory (NPD, DNPD, NPM, etc) Letter Head, Numbering

VI Financial system and procedure of Implementing Agencies

A Is SOP of Finance available? If yes, is it implemented?

B Are these bookkeeping/recording implemented?

B.1. Petty Cash Book

B.2. Cash Book


B.4. Bank Book

B.5. Bank Reconciliation

B.6. Bank Statement

B.7. Monthly Expenditure

B.8. Financial Report

B.9. Face Form




C. Has “Segregation of duty” as a part of internal

control system been implemented?

D Are there any forms of internal institution,

procedure, authorization, policy, correspondence,

approval, disposition, etc. implemented before?

E Are supporting documents complete?

E. Administration and Financial Management Monitoring Form

Indonesia Climate Change Trust Fund Financial and administration Self-Monitoring Form Name Executing Agency: Contract Number: Start Contract: Date of Review: I. Administrative Financial Checklist

No Description Yes / No Observation Follow up

I Human Resources Systems

A Organization structure

B Job Desk/TOR

C

Recruitment process documentation (Government Regulation No. 54/2010), including advertisement, TOR, list of applicant, CV, result of written test and interview)

D Personnel Contract, (wages)

E Copy cover bank account

F Timesheet

G PMU Staff Report

II Procurement Systems

A Policies and procedures PP 54/2010

B Procurement plan

C Term of reference

D Request

E Verification

F Approval




G Recipients

H Assets Inventory system: Tag, Label, Serial Number

I Bidding Process

III Travel

A Travel Plan

B Term of reference

C SPPD (Duty assignment letter)

D Travel Authorization (By NPD)

E Travel arrangements, air, land, sea, domestic International

F Invoice ticket payment from the vendor

G Ticket, boarding pass

H Travel reports

IV Workshops & training, Minimum standard administration

A TOR, Agenda, Budget

B Invitation, List of Participant

C Resource Persons, CV of Resource persons

D Selection of venue, 3 quotation, Hotel agreement

E

SPPD (Duty assignment letter; if the meeting is conducted outside the city / the participant coming from outside the city)

F Report, Minutes of meeting

G Factur/Bill/sign received/Payment

V Filling system(Consistent, easy to find)

A Filling system implementation

B Standard correspondences, Letter, Email, Fax, Signatory (NPD, DNPD, NPM, etc) Letter Head, Numbering

VI Financial System and procedure Executing Agency/Financial SOP EA

A Do EA develop a financial SOP? Is it implemented?

B Do the EA implement the UNDP financial




report requirement?


B.2. Cash Book


B.4. Bank Book

B.5. Bank Reconciliation

B.6. Bank Statement

B.7. Monthly Expenditure

B.8. Financial Report

B.9. Face Form

C. Is “Segregation of duty” as part of

internal control system implemented?

D Is there any internal procedure,

authorization policy, correspondence,

approval, disposition, etc. implemented

before?

E Are supporting documents complete?

II. Overall Assessment

(Based on above checklist and discussion with the EA/IA staffs, please provide brief

assessment toward administrative procedure being carried out)

III. Agreement on the next Follow Up Visit



F. Programmatic Monitoring Form

Indonesia Climate Change Trust Fund

Project Monitoring Sheet

Ministry/Institution:

Date of Monitoring: Monitoring Staff:

LOA/Grant

Agreement

Output

Indicator(s) Targets

Q1 Q2 Q3 Q4 Status

(On track,

Delayed,

Achieved)

Data

Source

Date of

Data

Collection

1 2 3 4 5 6 7 8 9 10 11 12

Output 1: Q1:

Q2:

Q3:

Q4

Output 2: Q1:

Q2:

Q3:

Q4: