ANNEX IV REVISED VERSION 1 TERMS OF REFERENCE

RFP/UNDP/DGU/006/2012

Provision of Policy Advice and Technical Assistance on Strengthening the Roles and Functions of Governor in Provincial Government
1. INTRODUCTION Provincial Governance Strengthening Programme (PGSP) aims to assist the Government of Indonesia in addressing some of the key challenges associated with decentralization through the provision of policy advice and technical assistance on the roles and responsibilities of the province government, reflected both in policy at national level and in practice in pilot provinces. The intended impact of the project is provincial governments role and functions strengthened through effective participatory policy making, regional development planning and public service delivery, leading to the realizations of national development objectives and the improvement of quality of life for the poorest. Law No. 32/2004 on Local Government article 37 and 38 indicated that the dual role of Governor, as both heads of autonomous regions and the representative of central government. The role of Governor as the representative of central government is very crucial considering the large territory of Indonesia in which the central government has very limited capacity to directly monitor and coordinate. A dual role of the Governor was clearly indicated in the existing Law No. 32/2004, but at the same time links between provincial and district governments were still lacking. In addition, the mandate for Governors in coordination with district government was weak, and governance capacity in district governments was limited. Meanwhile, all district government programs and policies should be in line with the national agenda to accelerate the development and public service delivery. In order to strengthen the role of the provincial government particularly Governor, there is a need to reform the regulation through the revision of Law No. 32/2004 including its ancillary regulations. This policy framework revision is extremely crucial which clearly defined role and function of the Governor where the provincial government is authorized to coordinate and monitor local development at the city/regency level. Despite the revitalizing the role of governor and provincial government, the revision of Law 32/2004 also aims to clarify the concept of decentralization within the framework of the Unitary State of the Republic of Indonesia (Negara Kesatuan Republik Indonesia, NKRI) and to clarify various aspects of regional administration which has not been clearly defined in the existing the Law No. 32/2004, for instance local government authority arrangements for provinces, archipelago provinces, creation of new jurisdictions, etc. Consequently, the revision of Law No. 32/2004 has mandated to revise the PP No. 23/2011 on the role of Governor as the representative of central government in the provincial level. Meanwhile, the establishment of new PP on Sanction for the head of local governments is also indicated in the revision of Law No. 32/2004. As stated in the revision of law, head of Local Governments who do not comply with legislations, national strategic program, government apparatus regulations and planning procedures are subject to be sanctioned. Currently, the Governor does not have an authority to provide sanction to Bupati/Walikota. It is worth noting that the revision of Law No. 32/2004 which initiated by the executive has been submitted to the Indonesian Parliament for further deliberation. The Parliament will subsequently develop the List of Inventory Problem (Daftar Inventarisasi Masalah, DIM) as the initial arguments to be discussed by the executive. Susilo Bambang Yudhoyono, the Indonesian President, has appointed five ministries to be in charge with this issue, namely: Ministry of Home Affairs (MoHA), Bappenas, Ministry of Finance (MoF), State Ministry of Administrative and Bureaucracy Reform (SMA-BR) and Ministry of Law and Human Rights Affairs (MoLHRA). As a leading institution, Minister of Home Affairs will formally assign the team who has expertise in legal, politics, administrative, public policy and monitoring aspects to lead the deliberation process.

2. SCOPE OF WORK As of February 2012, Special Committee (Panitia Khusus, Pansus) DPR and the appointed ministries have started the deliberation process of the revision of Law No. 32/2004. In late 2011, PGSP has facilitated the team of revision of Law No. 32/2004 in MoHA to develop the academic paper and preliminary draft of revision of Law No. 32/2004. PGSP will continue its support for this revision of law until the end of the process (the promulgation of the revised Law on Local Government). The following activities have been identified as future PGSP supports, namely: 1. Development of concept note to respond the List of Inventory Problem (Daftar Inventarisasi Masalah, DIM) which prepared by the Indonesian Parliament; 2. Establishment of Public Engagement Forum and Talk show in TV; 3. Development of Academic Paper and Preliminary Draft (batang tubuh) of the revision of PP 23/2011 as the implementing regulation of the Law No. 32/2004; and 4. Development of Academic Paper and Preliminary Draft (batang tubuh) of the new PP on the role of Governor in sanction as mandated by the revised Law No. 32/2004 on Local Government. Considering that PGSP has covered three pilot provinces, namely: Bangka Belitung, Gorontalo and Nusa Tenggara Timur, it is expected that some activities should be taking place in those provinces. 3. OBJECTIVE AND EXPECTED OUTPUTS The overall work is intended to provide technical and strategic expertise, facilitation and stakeholder management. The expected outputs are as follow: Established a clear definition of Governor status and role; Developed a format of line division of authority and responsibility for Governor as a head of autonomous region and the representative of the central government; and Developed a well-defined mechanism on the role of Governor on Sanction as head of autonomous region and the representative of the central government. The deliverables are: 1. Concept Note to Respond the DIM prepared by the DPR-RI National and regional workshops, TV talk show and public engagement forum. This output emphasizes on the enhancement of the role and function of governor as the representative of central government and the head of an autonomous region. Deliverables/outputs: 1 Concept Note to Respond the DIM 3 National Workshops as Public Engagement Forum 1 Talk show in TV (Metro TV or TV One) 2. Academic Paper and Preliminary Draft (batang tubuh) of the Revision of the PP No. 23/2011 Research study and analysis (field research) and FGDs. This area emphasizes on recommendations on integrating the Joint Circular Letter of three ministers (Surat Edaran Bersama Tiga Menteri: Menteri Dalam Negeri, Kepala Bappenas, dan Menteri Keuangan) into the bill of revision of PP No. 23/2011. Deliverables/outputs: 1 Academic Papers 1 Preliminary Draft (batang tubuh) of the Revision of the PP No. 23/2011 3 FGDs for inputs from stakeholders (national and local) 1 National Workshop for inputs from wider audiences. Academic Paper and Preliminary Draft (batang tubuh) of new PP on Sanction in line with the revision of Law No. 32/2004 on Local Government Research study and analysis (field research) and FGDs. The draft of new PP on Sanction is expected to elaborate the role of Governor in providing sanction for Bupati/Walikota. Deliverables/outputs: 1 Academic Papers 1 Preliminary Draft (batang tubuh) of the new PP on Sanction 3 FGDs for inputs from stakeholders (national and local) 1 National Workshop for inputs from wider audiences

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4. QUALIFICATION On doing the development of guidelines, the implementation of guidelines and the review of guidelines, the consultant should have a strategy to address the issue of alignment. PGSP UNDP invites organizations having specialization in decentralization with the following required characteristic: 1. Experience: The organization must have minimum requirement as follow: a) Ten (10) years of experience in development issues, including public policy, social policy, and economic inequality; b) Five (5) years of research experience in regional decentralization. 2. Expertise: The organization must have human resources with minimum qualification as follow: a) Team Leader must have postgraduate degree and at least 15 years experience as development practitioner/researcher in : Public Policy Administration Public Finance Legal Framework Decentralization Civil Service b) Team members must have minimum 7 years experience in research and report writing, and master degree with proven research experience and expertise in: Public Policy Administration Decentralization Development Studies Public Policy Urban and Regional Planning Public Finance Social Policy Legal Framework Human Resource Management 3. Methodology: In order to well-run the core activity of consultancy, interested organization should have specific capacities as indicated below: Produce documents depend on the output. Facilitate the publication and dissemination in the form of seminars, workshops and talk show in TV. 5. TIME FRAME The time line is as explain in the table below Activities Inception Report First Phase Support the process of deliberation of the revision of Law No. 32/2004 Development of Concept Note to respond the DPR DIM National Workshops in Jakarta (3 times) Talk Show in TV (Metro TV or TV One) Second Phase Development of Two Academic Papers on revised PP No. 23/2011 and new PP on Sanction Establishment of Two Academic Papers on revised PP No. 23/2011 and new PP on Sanction Field Research through FGDs in three PGSP pilot provinces (3 times) Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Activities Third Phase Development of Two Preliminary Drafts (batang tubuh) of the revised PP No. 23/2011 and new PP on Sanction as mandated by the revised Law No. 32/2004 Two Preliminary Drafts (batang tubuh) of the revised PP No. 23/2011 and new PP on Sanction Field Research through FGDs in three PGSP pilot provinces (3 times) National Workshop on new PP on Sanction (1 time) National Workshop on revised PP No. 23/2004 (1 time) 6. PAYMENT SCHEDULE

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The 12 months (June 2012 May 2013) service will have the following payment Payment Schedule (USD) 20%

Deliverables Deliverable 1: Deliverable 3:

Milestones/ Documentation UNDP approval of: Inception report document, which consists of: a) Methodology b) Operational Plan; c) Workplan d) Monitoring and Evaluation Framework e) Reporting f) Etc. UNDP approval of: 1 Concept Note to respond the DPR DIM 2 National Workshops 1 FGD UNDP approval of: 1 Academic Paper of the revision of PP 23/2011 1 Academic Paper of the new PP on Sanction 1 National Workshop 1 Talk show in TV 2 FGDs UNDP approval of: 1 Preliminary Draft (batang tubuh) of the revision of PP No. 23/2011 1 Preliminary Draft (batang tubuh) of the new PP on Sanction 3 FGDs 2 National Workshops on PP No. 23 and PP on Sanction

Target Delivery Date month 1st after signing the contract

Deliverable 2:

month 3rd after signing the contract

25%

month 6th after signing the contract

25%

Deliverable 4:

End of the contract

30%

7. UNDP VISIBILITY Upon confirmation by UNDP, The UNDP, BAPPPENAS and PGSP logos shall be displayed in banners and backdrops of events and activities organized by the consulting firm. The logo shall also be displayed on policy briefs, assessment report, white paper and publications.