ANNEX 6.1 


Terms of Reference – Professional Staff Management (Consultant)


Title of Post          :         Professional Staff Management for Establishing the

concept of Policy Framework on Government Borrowing Strategy

Location                :         Directorate of Multilateral Foreign Funding, BAPPENAS

Number                :         2 (two) persons

Duration of Post   :         12 Months




Establishing the Concept of Policy Framework on Government Borrowing Strategy

Foreign aid has played an essential role in Indonesiafs development activities particularly since 1971. The foreign aid received by the Government of Indonesia so far has been in the form of grants, soft loans, and export credit facilities. The various forms/schemes of funding were intended to cover the deficit in the development budget as well as routine expenditures. In the meantime, since the economic crisis in 1997, our dependence on foreign funding has increased.  


Internal sources of funding have been less than able to fund the development and yet are rampant to prevent reoccurring crisis. It is estimated until year 2006 that Governmentfs budget still remains deficit.  Through closing work period with IMF, has placed Indonesia for may not use facilities of Paris Club rescheduling or in other word, increasing the burden of Government.


Nevertheless, utilization of foreign loan/grant considered to be un-optimal.  There are numerous problem that causing project funded by loan/grant facing delayed implementation.


The basic problem in the management of the foreign loan in Indonesia is lack of policy framework on government foreign loan management. The document of policy framework should contains the priority of the sector/project funded by foreign loan and parameter as a references/guideline for the government to decide which project will be funded by foreign loan  and alternative source of fund. Lack of this document will derived Indonesia to enter the serious debt trap and many problems in project implementation.

Based on the situation mentioned above, the availability of document representing the policy framework and strategy of government for foreign loan (borrowing strategy) is necessary needed.

The strategy/policy must refer to national priority in Medium Term National Development Planning (RPJMN), clear in every category and indicator, comprehensive and consistent with good governance principles such as transparency, equity, and accountability.

Based on this condition, in year 2005 Bappenas with the Islamic Development Bank (IDB) will conduct study to formulate the policy framework and strategy of government for foreign loan (borrowing strategy). The activities of the study are: (i) desk study, (ii) workshop/seminar, (iii) Focus Group Discussion, (iv) overseas training/study, etc.  Duration of the activity  is 12 months.


Output of the Activities

Document of  policy framework and strategy paper on Government Borrowing in Indonesia



Duties and Responsibilities:

Under the supervision of Director of Multilateral Foreign Funding, the incumbent will:

1.         Assist  Bappenas to develop the concept of policy framework on government foreign loan management. Implementation of the study consist of desk study, workshop and focus group discussion.

2.         Keep track of and compile all relevant information on Indonesian laws and regulations that have direct  implications on the government foreign loan management.

3.         Regular contact with data providers related the government foreign loan management.

4.         Keep track of and compile international and national publication related to the government foreign loan management.

5.         Maintain and regularly update  data on publication, resources persons related to the study implementation.




Qualification Requirements

The successful candidates will be an Indonesian who meets the following criteria and performance dimensions:

1.         Education: University degree in related disciplines (economy, economic development, syariah economic, or financial management).

2.         Minimum  5 years experience on practical and  relevant professional in development contexts in Indonesia;

3.         Excellent verbal and written communication skills in English;

4.         Previous experience with international development agencies is a benefit.

5.         Well developed inter-personal skills, and proven ability at networking with government and donor agencies.

6.         S/he will also be able to perform under stress – also in circumstances when no immediate guidance may be available.