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| Embassy of the Kingdom of the Netherlands in Jakarta, Indonesia | Bahasa Indonesia-Nederlands | ||
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Development Cooperation Development Cooperation Within the Ministry of Foreign Affairs development assistance is the responsibility of the Minister for Development Cooperation. The Ministry of Finance has the task to deal with IMF and shares responsibility with the Ministry of Foreign Affairs for the World Bank Group and the Regional Development Banks. Responsibility for bilateral assistance at the country level has been delegated from the Ministry to the Embassies. Global Policies and Priorities The principal objective of the Netherlands’ development assistance is sustainable poverty reduction. Contributing to the Millennium Development Goals (MDG's) is considered to be the best way to achieve this. The Netherlands’ budget for Official Development Cooperation (ODA) is a fixed percentage (0,8%) of the Gross Domestic Product (GDP). Sustainable poverty reduction is only considered possible if the wide-ranging yet interlinked causes of poverty are tackled simultaneously. Education, health, good governance and AIDS prevention are important focus areas. The Minister also strongly supports private sector development as the engine of economic growth. The Minister has set special budgetary targets for education (15% of the available budget) and the environment and water sectors (at 0.1% of GDP). In the field of water supply the Netherlands aims to provide 50 million people with clean drinking water and sanitation before 2015 and provide 10 million new electricity connections worldwide. Global Level of Assistance The Netherlands is one of the few countries that is committed to allocating 0.8% of its GDP to development cooperation. Almost all ODA is provided in the form of untied grants. A grant programme (ORET) to stimulate development related export transactions provides grants up to 35% of the transaction value. This programme provides tied assistance, subject to OECD regulations. Type of Assistance and Programming In 2003, the Dutch parliament selected thirty six countries where the Netherlands international development co-operation is focussing on, one of them being Indonesia. To enhance aid effectiveness, the Netherlands as a rule of thumb limits its aid activities in each country to a maximum of two sectors only. Besides that, cross-cutting issues related to gender, governance and human rights are being dealt with. Programme Objectives and Priorities in Indonesia The bilateral cooperation with Indonesia initially concentrated on three sectors: basic education, water and community development, with good governance as cross-cutting theme. Gender and environmental issues are mainstreamed in programmes.
The majority of the Netherlands’ funds are being allocated to programmes of the Indonesian Government and are also executed by the Government. These funds, however, are channelled through multilateral agencies, which are responsible for the supervision, monitoring and coordination. Therefore Dutch funds are not being used to finance stand-alone Netherlands projects, but - on the contrary- are always mainstreamed in Indonesian sector-policies and in multilateral financing. In this way Dutch contributions benefit from a higher leverage. As a result, the Dutch interventions aim to be more effective and their impact more sustainable.
To further increase aid effectiveness, the Netherlands will actively pursue possibilities for further donor coordination in this context. Sector-wide approaches and in that context basket financing are preferred.
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