U.S. Embassy Jakarta, Indonesia


   


PUBLIC AFFAIRS SECTION

U.S. EMBASSY
PRESS RELEASE

April 24, 2009 

Government of Indonesia Begins MCC Compact Development Process

Bahasa Indonesia

Jakarta, April 24 A four person senior management team from the U.S.  Millennium Challenge Corporation is completing a week-long visit to initiate discussions with the government of Indonesia on developing a large-scale, five-year investment program to reduce poverty through economic growth. MCC assistance programs, or compacts, are provided entirely as grants.  The MCC team met with representatives from civil society, the private sector and government to explain the MCC Compact development process.

The team had meetings with senior Indonesian government officials, including the Ministers of Finance, Bappenas, and Foreign Affairs, the Coordinating Ministry for Economy and the Ministries of Public Works and Fisheries. The MCC team also met with local think tanks, private sector leaders, and NGOs. 

During this week’s discussions, MCC consulted the government of Indonesia on the best way to move forward in the compact planning process, establishing a foundation upon which the government can begin drafting a proposal for large-scale grant funding. The planning process for the compact is expected to last for 12-18 months. An MCC Board of Directors will review the completed proposals. 

Indonesia was chosen for eligibility in the MCC Compact process by the MCC Board of Directors in December 2008. MCC country eligibility is based on a scoring system of 17 independent and transparent policy indicators derived from internationally generated data. Eligibility for an MCC compact is contingent on a country scoring above the median on the control of corruption indicator and on at least half of 17 indicators in the areas of: ruling justly; investing in people, and economic freedom.  Indonesia qualified for compact assistance after successfully implementing a $55 million MCC threshold program focused on immunizations in select provinces, and governance reforms and capacity building with the judiciary and for procurement. 

The MCC was established in 2004 to help reduce poverty through sustainable economic growth. MCC partners with countries committed to principles of good governance, economic freedom and investments in their citizens. Once a country becomes eligible for MCC assistance, it develops its key priorities for achieving sustainable economic growth and poverty reduction. Countries develop their MCC proposals in broad consultation within their society on clear objectives, measurable results and transparent management.

For more information, please contact Roman Woronowycz, USAID/Indonesia Senior Development Outreach and Communications Officer at rworonowycz@usaid.gov or 021-3435-9424.

For more information about the U.S. Embassy Jakarta, please visit our website at http://jakarta.usembassy.gov.

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