Developing Monitoring and Evaluation Systems for Infrastructure Development Programs in Indonesia

This study identified issues and provide policy suggestions for improving the monitoring and evaluation (M&E) systems for infrastructure investment by the Indonesian government, so that the efficiency and effectiveness of the investment can be increased. In particular, four issues are identified and policy directions are suggested for each issue, based on a benchmarking of the Korean government’s experience. First, in order to foster sustainable infrastructure investment, an integrated and strong legislation is needed for the M&E system. The Indonesian government has been running M&E systems, but they were not managed in an integrated manner, and the indicators were not clearly set up. Second, an effective M&E coordination mechanism among the ministries and governments must be in place. In particular, there has to be a mechanism in the M&E system for coordination not just between the central government ministries, but also between the central government and the provincial or local governments. Third, developing a training program for establishing and operating an M&E system is necessary. Fourth, making effective M&E tools and systems for financial investment projects in Indonesia is crucial.