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Cablegate: Indonesia Hiv/Aids Program Update

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.

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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

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