The Strategy

The Government of Indonesia is taking steps towards improving service delivery and is creating and maintaining a conducive environment for economic development at both the national and sub-national levels. Some adjustments are required for the impact of these efforts to be felt wider in Indonesia.

The issues impeding the spread of the benefits of the GoI’s efforts that need addressing are less about the lack of resources or finance and more towards:

  • Clarifying complex policies, systems, and processes for better implementation at all levels,
  • The pace of devolution outstripping governance capacities;
  • Strengthening systems of accountability and coordination;
  • Improvements in systemic links between governments and civil society and;
  •  Processes to address cross-cutting issues.

KOMPAK’s Goal is that: Poor and vulnerable Indonesians benefit from improved delivery of basic services and from greater off-farm economic opportunities.

KOMPAK’s ‘meta-hypothesis' and Theory of Change is therefore that more and better services will be delivered to the poor, the marginalised and the disabled and that more off-farm economic opportunities will be created if: policies are more coherent, resources are more appropriately deployed, public service systems function more effectively, citizens are more engaged and more demanding, officials and politicians are more accountable, incentives for individual and organisational delivery are reinforced and if consequences for under-performance are timely and meaningful. 

KOMPAK's focus is thus on supporting the GoI to implement its ‘Frontline' approach, which seeks improvements in the access and quality of delivery of basic services, supporting the implementation of the Village Law and community participation in village governance, community-led development and the creation of off-farm jobs for the poor. The focus is supply side (government) and the demand side (community) at both national and subnational levels, but with increasingly more focus on implementation at the subnational level.

Innovation, experimentation and GESI are cross-cutting issues across all projects and activities.

For its first phase, KOMPAK supports the GoI to put in place improved systems, processes and procedures focusing on specific issues within its results areas towards achieving very specific high-level End of Facility Objectives (EOFOs) to which all its activities and projects contribute to:

KOMPAK will test its Theory of Change during implementation and will review and test assumptions in order to judge how and why the change is occurring and in which contexts it is occurring.


Poor and vulnerable Indonesians benefit from improved delivery of basic services and greater economic opportunities

Outcome 1

Local government and service units bentter address the needs of basic service users.

  • Intermediate Outcome 1
    Fiscal transfer arrangements for basic service delivery improved.
  • Intermediate Outcome 2
    Local government (LG) and service units (SU) have strengthened systems, processes and procedures.
  • Intermediate Outcome 3
    Local government and service units utilize evidence and understanding of local issues to improve services.

Outcome 2

The poor and vulnerable benefit from improved village governance.

  • Intermediate Outcome 4
    Village governments are more responsive and accountable to the identified needs of their communities, particularly those of the poor and vulnerable.
  • Intermediate Outcome 5
    Village institutions and other actors (e.g. private sector, CSOs) are effectively engaging with village government and service units to address needs of the poor and marginalized.
  • Intermediate Outcome 6
    Communities are increasingly  advocating their priorities in  relation to the village  development, including access  to front line services.

Outcome 3

The poor and vulnerable benefit from increased opportunities for off-farm employment and  economic development.

  • Intermediate Outcome 7
    The enabling environment increasingly supports off- farm employment opportunities.

Project 1

Strengthening Intergovernmental Fiscal Transfer Policies for Basic Services

Project 5

Enhancing Village Government Capacities for Basic Services and Economic Opportunities

Project 8

Strengthening Access of Communities and Micro-enterprises to Financial Services and…

Project 2

Improving Capacities of Local Governments and Service Units for Basic…

Project 6

Strengthening Capacities of Village Institutions and Stakeholders toward Pro-poor and…

Project 9

Innovations for Integrated and Responsive Skills Development Centers

Project 3

Improving Delivery Systems and Innovations for Basic Services

Project 7

Increasing Representation of Communities in Village Institutions and Development Processes

Project 4

Landasan Phase 2

Project 10

Innovations for Service Delivery and Economic Empowerments