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COMPACT GRANT

Compact Grant is one of the main pillar of the Comprehensive Partnership between U.S. and Indonesia. This grant aims to reduce poverty through economic growth in Indonesia, and takes place for five years, from 2013 until 2018. The grant is used to fund three projects: Green Prosperity, Community-Based Health and Nutrition to Reduce Stunting, and Procurement Modernization.

Through a competitive selection process, Indonesia was chosen as the recipient of the Compact Grant. On 19 November 2011, the Millennium Challenge Compact Grant Agreement was signed by both parties in Bali. Secretary of State Hillary Rodham Clinton represented the U.S. Government, while Finance Minister Agus D. W. Martowardojo represented the Government of Indonesia. Indonesia became the recipient of the Compact program, the largest commitment of the United States of America in the last three decades in Indonesia.

The Indonesian government welcomed the Compact Grant for the similarity mission between the government and the Millennium Challenge Corporation (MCC) is to reduce poverty through sustainable economic growth. In addition, the grant from MCC is in line with the principles of the Jakarta Commitment, signed by the Government of Indonesia on 19 January 2009 and adopted by 26 Indonesian development partners. Based on the Jakarta Commitment, Indonesia and development partners will act together to strengthen ownership of the counties that receive development assistance, and maximize the impact of the assistance after the lack of official development assistance (ODA).

Different from other grants, MCC gives flexibility and authority for the partner country to develop programs initiated with the involvement of many stakeholders. The involvement of multi-stakeholders from various government ministries/agencies, academics, the private sector, and civil society organizations, is a novelty and never happened before in designing a grant program from foreign partners.