OPENING SPEECH DEPUTY MINISTRY FOR HUMAN RESOURCES

AND CULTURAL AFFAIRSMINISTER OF NATIONAL DEVELOPMENT PLANNING/BAPPENAS

Steering Committee for Investment Case (IC) DevelopmentAsia and Pacific REGION

31st January to 1st February, 2012Jakarta, Indonesia

1

• Assalamualaikum Warrahmatullahi Wabarakatuh

• Good Morning to everybody,– We welcome participants for your attendance

in the Investment Case Regional Meeting– In particular, I would like to welcome steering

committee members to my country– We also thank participants from line

ministries and our partners in the investment case process – AusAID, University of Queensland, University of Gaja Mada & UNICEF

Outline

• Inequities in health in Indonesia• The process of decentralization of health

services• The opportunity for the investment case

approach to support decentralization by improving planning and budgeting processes at local level

• The way forward

U5MR based by Group of Islands1990 - 2015

Source: Kim-Huong Nguyen, Anna Elizabeth Bauze, Eliana Jimenez-Soto, Salahudin Muhidin (2011): INDONESIA Investment Case for Financing Equitable Progress towards MDGs 4 and 5 in the Asia-Pacific Region EQUITY REPORT

IMR by Group of Islands1990 - 2015

Source: Kim-Huong Nguyen, Anna Elizabeth Bauze, Eliana Jimenez-Soto, Salahudin Muhidin (2011): INDONESIA Investment Case for Financing Equitable Progress towards MDGs 4 and 5 in the Asia-Pacific Region EQUITY REPORT

NMR by Groups of Islands 1990 - 2015

Source: Kim-Huong Nguyen, Anna Elizabeth Bauze, Eliana Jimenez-Soto, Salahudin Muhidin (2011): INDONESIA Investment Case for Financing Equitable Progress towards MDGs 4 and 5 in the Asia-Pacific Region EQUITY REPORT

DECENTRALIZATION - OVERVIEW

• In 2001 Indonesia implemented a radical fiscal, political and administrative decentralization under which the responsibility for delivery of services, including health, was transferred to the districts.

• Since 2001, there was a significant increase in public expenditure on health with real public expenditure more than doubling between 2000 and 2006

DECENTRALIZATION - CHALLENGES

• However, in many districts/cities, budget allocation for MNCH is relatively low

• The main obstacle in handling challenges in mother and child health (KIA) is not lack of funding resources, but lack of local technical and administrative capacity that limit access to adequate resources.

• Planning and budget allocation is not founded on evidence

The Potential of Investment Case

• To increase the technical capacity of DHOs to develop plan and budget using available evidence to determine the appropriate package of activities

• To optimize locally available and relevant data to guide DHO’s strategic direction in mother and child health (MCH) programs

• To avoid arbitrary and political basis for allocating budget for MCH programs and shift to allocations based on proven evidence based strategies

WAY FORWARD

• Joint cooperation between GoI-UNICEF has shifted from a project oriented approach to a systems oriented approach

• Emphasis will be to build capacity at national and sub national levels for evidenced based planning and budgeting

• GoI sees the potential of the IC approach in identifying and addressing bottlenecks in the implementation of MCH programmes along with existing planning mechanisms and tools

WAY FORWARD

• Discussions at this meeting will be critical in - Sharing lessons from our IC work so far in

Indonesia- Determining the scope and direction of ongoing and future IC work in the country- Learning lessons from other countries on the role of the IC approach in addressing systems bottlenecks

Thank you and may you all have a very productive meeting