Speech

KPPOD Awards Ceremony: Investment Award 2006 Opening Remarks by Larry Meserve, Acting Director USAID Indonesia

Jakarta | Monday, June 12, 2006

Yang terhormat Bapak Menteri Koordinator Perekonomian, Yang terhormat para Pimpinan Daerah, Wakil-wakil Lembaga Internasional dan Lembaga Donor, seluruh jajaran pelaksana yang melaksanakan acara ini, serta Ibu-ibu dan Bapak-bapak peserta konperensi yang terhormat, Selamat pagi, dan Selamat Datang di acara “Penyerahan Investment Award ke empat untuk daerah peringkat terbaik daya tarik investasi” yang diselenggarakan oleh KPPOD ini.

Izinkan saya untuk meneruskan dalam bahasa Inggris,  karena saya yakin anda semua lebih mengerti bahasa Inggris daripada bahasa Indonesia saya..

Good morning ladies and gentleman, Coordinating Minister Boediono, and our close partners KPPOD, KADIN, and The Asia Foundation.  First let me offer the greetings and apologies of USAID Indonesia Mission Director Bill Frej who is in Medan today on a previously-planned engagement.  He has very much enjoyed participating in these ceremonies in the past and regrets that he cannot be here today for this auspicious occasion.  

USAID is extremely pleased to support the fourth annual Investment Award Presentation to the best Region for investment, and we congratulate KPPOD on its continued excellence in this challenging but rewarding effort spanning some 228 kota and kabupaten.  It is a great service and accomplishment and USAID is proud to support this valuable effort along with our partners.

Since taking office, the Government has made significant progress in a number of areas supporting Indonesia’s economic growth. Growth accelerated in 2005 even in the aftermath of the tragic tsunami and bombings.  Indonesia has been removed from the monitoring list of the Financial Agency Task Force and the rupiah has stabilized since its August 2005 volatility.  While the lowering of fuel subsidies has posed a challenge to many, the Government has put in place a compensation scheme and the move has been hailed by the markets for helping to improve Indonesia’s fiscal position.  In fact, in May, Moody’s upgraded Indonesia’s ratings, citing the relatively more sound structure of Indonesia’s debt.  Another key accomplishment is Indonesia’s qualification as a Millennium Challenge Account Threshold candidate country, further testimony to the great accomplishments made by national and local governments.  Still, a number of challenges remain, including those related to the decentralization process.

The Government of Indonesia first launched decentralization reform in 2001, but local autonomy does not happen overnight.  Challenges abound in the areas of institutional capacity, local economic development, infrastructure, regulatory environment and others.  For these challenges to be overcome takes the commitment, participation and innovation of all parties, both public and private.  There are many actors involved in making decentralization work:   local government officials, DPRD legislators, central government ministries, private businesses, individuals, civil society and the media, to name a few.  When all of these players come together, great things can be accomplished.

However, great accomplishments take time, effort, communication and understanding.  The analysis and framework presented by KPPOD helps us all to measure, benchmark and better understand these efforts, where they are working and where work still remains.  As stakeholders come together to cooperate and identify solutions that benefit both the regions and nation as a whole, positive change will be accomplished. 
USAID, through its support of KPPOD, the Asia Foundation and others is committed to assisting local governments achieve public service excellence by promoting principles of democracy, transparency, accountability and sustainability.  The KPPOD evaluations and rankings help local governments as well as private sector stakeholders measure and benchmark efforts, measuring progress over time and highlighting areas of substantial progress but also areas still in need of improvement.    By bringing these accomplishments and areas for improvement to the attention of policy makers and citizens, it is possible to change perceptions, influence policy and promote new and better practices. 

So, today we will recognize some of the individuals and some of the Kota and Kabupaten that are models in Indonesia. Together they are taking steps to build stronger local and national economies and creating the type of investment climates that attract businesses and jobs and lead to growth and prosperity.  These are goals that we at USAID share along with all of you.

USAID remains committed to supporting more accountable, transparent and responsive local governance in Indonesia.  Local governments can improve and these awards are proof of progress.

Now, let’s move on to the exciting part of the ceremony – the Awards!  Again, congratulations to all involved in this event and particular congratulations to the award winners!  Thank you.