The Compact Program also conducts several crosscutting activities as a support for the three main projects. These activities focus on social and gender integration, environmental and social accountability, and monitoring and evaluation. These crosscutting activities are inseparable parts of every main project. To ensure success, each activity is supported by a specialized team designed to help achieve the goals of each project.

Social and Gender Integration

There are various challenges to achieve equal economic opportunities in Indonesian society. To deal with these challenges, a social and gender analysis is integrated as part of the design of each of the three projects.

MCA-Indonesia has a mandate to maximize positive social impacts, address crosscutting social and gender issues, and to ensure compliance with the MCC Gender Policy. For this purpose, MCA-Indonesia established a Social and Gender Integration Plan (SGIP) in the first quarter in the first year of Compact implementation. SGIP is an operational document designed to systematize and ensure gender integration across Compact projects and activities. SGIP also highlights certain social constraints and opportunities that may be relevant across sectors, as well as risks that need to be managed.

Environmental and Social Accountability

MCA-Indonesia developed the Environment and Social Management System Framework (ESMS Framework) at the beginning of the Compact. The ESMS Framework is a set of guiding principles that ensures all MCA-Indonesia operations and investments comply with relevant laws and regulations of the Government, MCC Environmental Guidelines, and the MCC Gender Policy. Additionally the ESMS Framework helps ensure that the Compact is consistent with International Finance Corporation (IFC) Performance Standards.

The ESMS Framework was developed through a consultative process to guide the environmental and social performance of MCA-Indonesia. The development and adherence to the ESMS Framework is one of the Compact’s key performance standards. It is a “living document” that will be reviewed and updated on an as-needed basis over the duration of the Compact.

Monitoring and Evaluation

During the first year of the Compact, MCA-Indonesia established a Monitoring and Evaluation (M&E) Plan. M&E is a key component of the Compact’s activities that has been incorporated into all facets of the project cycle. The M&E Plan gives details about what short- and long-term effects the Compact and each of its projects are expected to produce — economically, socially, and environmentally — and how these effects will be achieved.

MCC’s decision to support the three projects proposed by the Government of Indonesia was based on estimated Economic Rates of Return (ERRs) greater than or equal to 10%. The projected ERR of the Community-Based Health and Nutrition to Reduce Stunting Project exceeds the 10% benchmark, and evidence supports the likelihood of a high-enough ERR in the cases of both the Green Prosperity and Procurement Modernization projects. The measurement of project ERRs is a core component of the M&E Plan.

M&E will be an essential tool for results-based Compact Program management. The M&E Plan provides programmatic information and data for evidence-based decision making as projects are implemented. Monitoring data is analyzed regularly to allow managers of MCA-Indonesia and MCC to make programmatic adjustments as necessary with a view towards improving the overall implementation and results of the Compact Program. Where M&E identifies successful development models, they will be evaluated for potential replication to other areas of Indonesia, even after the conclusion of the Compact.