VZCZCXYZ0000
RR RUEHWEB

DE RUEHJA #1660/01 2630907
ZNR UUUUU ZZH
R 200907Z SEP 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 0286
RUEAUSA/DEPT OF HHS WASHDC
RUEHBK/AMEMBASSY BANGKOK 7335

UNCLAS JAKARTA 011660 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
DEPT FOR S/OGAC/MDYBUL 
DEPT ALSO PASS TO USAID/OHA/YAMASHITA/PICK 
DEPT ALSO PASS TO HHS/WSTEIGER 
BANGKOK FOR USAID/RDM/A 
 
E.O. 12958: N/A 
TAGS: SOCI KHIV TBIO EAID ID
SUBJECT: INDONESIA  HIV/AIDS PROGRAM UPDATE 
 
¶1. (U) Summary. Indonesia's national HIV/AIDS program is in 
a critical situation; they are at risk of losing 
approximately $50 million of Global Fund monies due to poor 
program management and performance. On July 13, Indonesia's 
President issued a Presidential Regulation providing the 
National AIDS Commission with more authority, funding and 
structure.  USG, through the Capacity Project, is providing 
in depth technical assistance in the areas of program 
management, human resources, financial management and 
monitoring and evaluation. On September 6, a sub-group of 
the Country Coordinating Mechanism (CCM), including 
representatives from USAID, met with the Minister of Health 
to discuss the critical situation of Indonesia's Global 
Fund HIV/AIDS program. End Summary 
 
Indonesia's Global Fund HIV/AIDS Program 
---------------------------------------- 
 
¶2. (U) Indonesia received two Global Fund AIDS grants in 
Round 1, covering the period of July 2003 to June 2007 and 
Round 4, covering April 2005 to March 2010.  To date, Round 
1 disbursements from Global Fund are $7,062,548 from 
$15,900,000, which accounts for 44 percent of funds 
disbursed.  Round 4 disbursements are $16,398,610 from 
$65,035,569 which accounts for 25 percent of funds 
disbursed.  Approximately, $50 million of Phase 2, Round 4 
funds are at risk due to poor program management and 
performance.  The Ministry of Health (principal recipient) 
and members of the CCM, including representatives from 
USAID, are currently reviewing the global fund round 4 
proposal and developing the phase 2 proposal due September 
30, 2006. 
 
¶3. (U) Indonesia's Global Fund's portfolio manager visited 
Indonesia from August 31 to September 7.  He provided clear 
messages to the PR and the CCM that improvement in both 
program management and performance will have to be seen in 
order to receive phase 2 funding.  He also stated that with 
efforts undertaken by GOI and their partners are starting 
to show positive results. 
 
¶4. (SBU) Comment: The loss of these funds would severely 
impact the entire HIV/AIDS national program and leave 
Indonesia scrambling to find additional funds to keep the 
National program running and in particular, support 
treatment for Persons Living with HIV/AIDS and intravenous 
drug users currently on methadone replacement therapy. 
 
Indonesia's National AIDS Commission 
---------------------------------------- 
¶5. (U) On July 13, 2006, Indonesia President Dr. H. Susilo 
Bambang Yudhoyono signed a regulation of the President of 
the Republic of Indonesia on The National AIDS Commission 
(NAC).  The new regulation provides clear duties and 
responsibilities to the NAC, appoints Dr. Nafsiah Ben Mboi 
as the Secretary, allows for increased funding, including 
increased staff.  Additionally, the NAC now reports 
directly to the President.  The NAC is currently developing 
a National HIV/AIDS Strategy 2007-2010.  Additionally, NAC 
is developing a costed annual work plan that includes 
Global Fund and all partner activities. 
 
¶6. (SBU) Comment: We believe that under Dr. Nafsiah Ben 
Mboi's leadership, Indonesia's NAC will have a positive 
impact on the National HIV/AIDS program and will provide a 
solid structure to carry out HIV/AIDS program activities, 
as well as, bring awareness and improved leadership to all 
levels of the GOI on the plight of the current HIV/AIDS 
program. 
 
USG Technical Assistance Efforts 
-------------------------------- 
 
¶7. (U) USAID staff and US based contractors, through the 
Capacity Project, are providing in depth technical 
assistance to the PR and Global Fund program in the areas 
of program management, human resources, financial 
management and monitoring and evaluation. The team has made 
recommendations to improve both the program management and 
performance in the above mentioned areas.  This assistance 
has been well received and the Government of Indonesia 
(GOI) has started implementing the TA team's 
recommendations.  We feel that if all of the 
recommendations are fully implemented, we should see a 
positive effect on the program immediately.  Program 
performance results should be seen by the end of Q7 
(December 2006). 
 
Meeting with Minister of Health on Global Fund performance 
--------------------------------------------- ------------ 
 
¶8. (U) On September 6, a sub-group of the Country 
Coordinating Mechanism (CCM), including representatives 
from USAID, met with the Minister of Health, Siti Fadilah 
Supari, to discuss the critical situation of the Global 
Fund HIV/AIDS program as well as stress the importance of 
strong leadership and commitment from the GOI to manage and 
implement Global Fund monies.  Both bilateral and 
multilateral donors stated full commitment to assist the 
GOI to succeed, however we also requested that the GOI 
fully implement all the recommendations made by the 
technical assistance team, including increasing the number 
of staff working full time on the management and 
administration of the program. The Minister stated that she 
is fully committed to making the Global Fund HIV/AIDS 
program fully operational and that the commitment from the 
GOI is high. 
 
¶9. (SBU) Comment: During the meeting, surprisingly the 
Minister of Health, seemed unaware of the current Global 
Fund situation.  However, now that she is aware of with the 
threat of losing Global Fund monies, she might provide the 
required and necessary leadership urgently needed to 
improve performance. 
PASCOE