MCC Compact Celebrates US-Indonesia Partnerships to Promote Economic Growth, Better Health, Strengthened Government Services for Indonesians in NTB

Surabaya – A delegation from the U.S. Government’s Millennium Challenge Corporation (MCC) joined United States Ambassador to Indonesia Joseph R. Donovan Jr. in Lombok to mark the closure of MCC’s compact with the Government of Indonesia. Ambassador Donovan and the MCC delegation, led by Vice President and Secretary of the MCC Board Jeanne Hauch and Vice President for Congressional and Public Affairs Karen Sessions, met with provincial Governor Muhammad Zainul Majdi of Nusa Tenggara Barat (NTB) to recognize his strong support of MCC projects in the province.

Ambassador Donovan noted “The progress here is an example of the success of the compact across the country, which has provided a strong foundation for the Government of Indonesia to help millions of Indonesians lead healthier and more economically secure lives.”

 MCC’s five-year compact with the Government of Indonesia has overcome barriers to growth through investments in nutrition, procurement modernization, and by advancing green prosperity through sustainable development. Noteworthy MCC successes in NTB include:

  • The Community-Based Health and Nutrition Project reduced stunting in all eight NTB districts, and is working to alleviate chronic malnutrition and stunted growth to help children achieve their full potential.
  • NTB’s procurement service unit was named one of the first nationwide-centers of excellence, and the local government has committed funding to continue building on progress made under the compact.
  • Grantees, including Panca Karsa and Peka Sinergie, received funding from the compact’s Green Prosperity Project to help drive sustainable growth in Indonesia. Panca Karsa, a local salt production cooperative with 95% female membership, has improved manufacturing quality and marketing efforts. Peka Sinergie, a joint initiative between industry and government, has developed and formalized renewable energy technician standards in support of nationwide vocational education programs.

“Governor Majdi and Nusa Tenggara Barat have demonstrated great commitment to this program, integrating MCC compact activities with existing development plans,” Ambassador Donovan said after meeting with the Governor.

Today’s events conclude three days of site visits with communities across the island. While in Lombok, the MCC delegation met with participants and beneficiaries of a number of Community Based Natural Resources Management (CBNRM) grant projects, including a posyandu health center, and a procurement service unit. On May 8, the delegation will return to Jakarta for the final closeout ceremony hosted by the Millennium Challenge Account – Indonesia, and the Indonesian Ministry of National Development Planning (BAPPENAS).

“MCC’s partnership with the Government of Indonesia introduced new models and systems tailored and scaled to meet both local and national needs—and we have seen how this approach has worked first-hand during our visit to Lombok,” said MCC Vice President and Secretary of the MCC Board Jeanne Hauch. “We are proud of what we’ve achieved together and I look forward to seeing how people in Nusa Tenggara Barat and across Indonesia, continue to build on that progress.”

 Project Site Visits for MCC Delegation:

The MCC delegation visited:

  • Praya Timur with the Panca Karsa organization to meet with female salt farmers who now have more effective practices and utilize better technology to increase their salt production;
  • Kopang on the slopes of Mount Rinjani to see a watershed management and forest rehabilitation project that focused on sustainable management of local natural resources by combining community cooperation and benefit-sharing with modern technology;
  • Batukliang to see how Hivos and its partners developed the use of household bio-digesters among farming households as a way to produce biogas that is used for cooking and other household needs, in addition to developing farmers’ business skills to leverage the benefits of solar charging stations and solar lanterns that were constructed with compact funds; and
  • In the same sub-district, to see a World Wildlife Fund project that worked with women’s cooperatives and other farmer groups to capitalize production houses for activities such as bamboo-weaving and jackfruit-chip drying.
  • In addition, the delegation visited a posyandu in Gunung Sari that received MCC funding to increase the supply of quality services and trained health workers in infant and young child feeding, growth monitoring, micronutrient supplementation and sanitation.

 About the MCC Compact:

MCC’s five-year compact with Indonesia has been a major pillar of the U.S.-Indonesia Strategic Partnership. Investments, made through the compact, have reduced poverty and promoted economic growth and engagement with the private sector, including partners such as Mars, Nestle, Unilever and others.

Through the MCC, the United States has supported Indonesia’s development and contributed to regional security and global economic growth.

The MCC Indonesia Compact was designed by and for Indonesians to address significant barriers to economic growth and private investment in Indonesia. The compact sought to reduce childhood stunting and malnutrition by shaping a national conversation on nutrition; improve the effectiveness of government spending by modernizing the government’s procurement system for public goods and services; and supported the Government of Indonesia’s commitment to equitable growth by maximizing opportunities for investment in agriculture and renewable energy, including through partnerships with the private sector. The compact began in 2013 and was implemented by the Millennium Challenge Account – Indonesia.