“Parliamentarians in the Field” organised by Parliamentary Network on the World Bank & IMF Indonesia, 1-4 February 2016

05 October 2017

A  Delegation  of  the  Parliamentary  Network  visited Indonesia from 1  to  4  February 2016 within  the Parliamentarians in the Field Programme. The Delegation comprised of Board Members of the PN and Members  of  Parliament  (MPs) coming from Australia, Azerbaijan,  Belgium,  Cameroon,  Canada, Colombia, Haiti,  Denmark, DRC, El Salvador, France, Indonesia, Kenya, Madagascar, Morocco, Pakistan, Portugal, and Tunisia.

The Delegation learned about the World Bank and IMF’s dialogue with other development partners. Borrowing country MPs can use field visits  as  benchmarking  exercises  and  opportunities  to  exchange  views  and  experiences. For  donor country  parliamentarians, Parliamentarians  in  the  Field programme  presents  an  opportunity  to  see development cooperation in practice.

 This program itself has taken over 175 MPs from both developed and developing countries to countries where the IMF and the World Bank are active since 2009. There is a growing recognition of the important role that Parliamentarians can play in the development agenda through a dialogue between international financial institutions like the IMF, World Bank, and the communities they serve. In order to influence development policies and projects in their home parliaments, it is very helpful if parliamentarians have the opportunity to assess the development efforts and related results first hand.

This visit lasted for four days to allow time for projects visits in several locations in Indonesia. The program included discussions with local parliamentarians and officials from Government, the IMF and World Bank teams in Indonesia, civil society and private sector representatives, and other donors.

During  the  visit, parliamentarians  met  with  several  development  partners such  as  the  World  Bank Group (WBG),  the  International  Finance  Corporation (IFC), the  International  Monetary Fund (IMF) as well as Indonesia’s officials such as H.E. Bambang Permadi Sumantri Brodjonegoro, Minister of Finance; H.E. Darmin Nasution, Coordinating Minister of Economy;  H.E. Fadli Zon, Vice-Speaker of the Indonesian Parliament; Hon. Nurhayati Ali Assegaf, MP, Head of Inter-Parliamentary Cooperation Committee of the Indonesian Parliament; Hon. Agus Martowardoyo, Governor of Central Bank of Indonesia; Hon. Perry Warjiyo, Deputy-Governor of Central Bank of Indonesia, and representatives from  civil society organisations (CSOs).

 

The visit focused on four different topics:

  • Macroeconomic Development and Future Challenges

During meetings with the IMF and WBG officials, Minister of Finance, and Coordinating Minister of Economy, the Delegation had the opportunity to discuss Indonesia’s macroeconomic development as well as perspectives for the futures.

  • Development and  Social  Inclusion

The Delegation visited Kertamaya Village in Bogor, West Java, Indonesia to see how World Bank supports the poverty-reducing project at rural level. With the support of World Bank, Government of Indonesia implements The National Program for Community Empowerment (PNPM Mandiri) in Kertamaya Village. PNPM Mandiri itself is Indonesian Government’s flagship community-driven development program which focuses on reducing poverty in all Indonesian provinces through a community planning process that generates employment and invests in small-scale infrastructure projects that improve the development of individual villages and urban wards. Since 1998, the World Bank has supported PNPM and its predecessor programs through a combination of loans and technical assistance.

  • Private Sector Partnerships with IFIs

The MPs were thoroughly briefed on the private sector dynamic in Indonesia from IFC, WBG and IMF officials. The main topics that were touched upon were the Indonesian success story, but also where challenges continue to lie. Further, the Delegation saw a project funded by the IFC and WBG, showing the variety of projects which can be funded by IFIs and the outcomes. The Delegation visited Mitra Bisnis Keluarga Ventura (Family Business Partners) in Tangerang, Banten, Indonesia which is one of microfinance institutions (MFIs) regulated by the Indonesian Financial Services Authority (FSA), and licensed as a non-bank finance company.

Using the Grameen Bank methodology, MBK provides working capital to low-income women in Java, Indonesia, in order to provide them access to formal and cost-effective financial services (financial inclusion), reduce their vulnerability, and improve their lives. Since launching its operations in 2003, MBK has now become one of the largest Grameen-style microfinance institution in Indonesia. MBK hopes to contribute to the government’s goals of meeting the Millennium Development Goals (MDGs), particularly in fighting poverty and empowering women. The Delegation was briefed beforehand on MBK’s role and was given ample time to discuss with MBK’s representatives.

  • Good Governance, Parliamentary Oversight, and Civil Society Cooperation

The Delegation also met with H.E. Fadli Zon, Vice-Speaker of the Indonesian Parliament, and Hon. Nurhayati Ali Assegaf, MP, Head of Inter-Parliamentary Cooperation Committee of the Indonesian Parliament. Several issues were raised, such as parliamentary engagements with the government, social issues impacting Indonesians, and the economic development and challenges within the country. The session provided an opportunity for MPs from around the globe to interact with Members of the Indonesian Parliament, sharing knowledge among each other for legislative best practices and knowledge. The Delegation also had a meaningful discussion with CSOs. The visiting MPs were afforded the opportunity to see the other perspective apart from those outlooks given by government officials, Indonesian MPs, and private enterprises.

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