Annual Progress Report October 2010–September 2011 and
Quarterly Progress Report July 2011 -September 2011

This report serves as the Annual Progress Report for the Fiscal Year 2011 (October 2010-September 2011) as well as the Quarterly Progress Report for SERASI activities for July – September 2011. In the third year of the SERASI base contract, the program ceased operations in Aceh, Sulawesi, and the Malukus, and continued its expansion to Papua and began awarding grants to organizations in and around the area of Jayapura. With the advent of Option Year 1/Contract Year Four, SERASI’s work is now focused almost entirely on Eastern Indonesia, namely Papua, with sectoral concentrations in Health (Maternal and Child, HIV/AIDS, TB), Education (basic education for remote and under-served areas), and Democratic Governance (participation and transparency, with a focus on Special Autonomy (OTSUS) implementation and the cultivation of new leaders). Cross-cutting grants incorporating as many elements from the concentrations above receive priority for funding. A number of grants are being administered on a national level for cross-cutting issues, largely to organizations in Jakarta.

While SERASI was operating in Papua in 2010, grant activities (19 total grants in 2010) there were largely managed from offices in Palu and Jakarta. In the last two quarters, SERASI has expanded from a single person representative office in Jayapura city to now having eight full time technical staff based in Jayapura. Several of these staff are specialists in the areas of education and health, bringing a much needed technical expertise to the team in Year Four. Recruiting staff willing to relocate to Papua proved quite challenging, but SERASI has had a high degree of success in doing so. Finding qualified staff already resident in Papua is a challenge that has yet to be overcome.

As of the end of the reporting period, SERASI has forged partnerships and provided funding to every organization in its area of operation that is capable of implementing projects. An exploratory trip to Mimika District was conducted in August to assess the possibility of expanding to that area, but USAID and SERASI decided against this: expansion to areas of the Kepala Burung (Sorong and Manokwari) is anticipated in the next quarter. Logistical issues related to the remoteness of project areas continue to challenge SERASI, with 50% of staff in the field at any given time. Transportation of goods procured under grants and transportation of staff on field visits takes time and requires flexibility; and core operational functions, from communication in areas without mobile phone or internet, to banking and financial transactions with grantees, has required a very real re-tooling of how we approach our work. Political issues related to the upcoming elections and independence aspirations continue to hamper project activities. Numerous killings in the interior also impeded staff movement in the month of August.

As of the end of this quarter, SERASI evaluated a total of 72 potential grantees, and has issued 22 grants to local civil society organizations and research bodies in Jayapura, Wamena, and Jakarta. Thirteen grants are in varying stages of Performance Based Management System: eight are in stage two and five are in stage one. In addition, 37 assessed grantees are in varying stages of grant application development, with the active assistance of SERASI project officers. SERASI’s active grants are valued at USD 2,683,424. Twenty of the grants are focused on cross-cutting education, health, and governance issues in Papua, while two are focused on tolerance issues at the Jakarta level. This builds upon the SERASI foundation established in 2010, when 19 grants were awarded in Papua for a total of USD 1,557,021. Despite numerous challenges, SERASI has maintained its momentum and is making real inroads in advancing the objectives of USAID.