Investor Presentaiton

MESSAGE FROM THE EXECUTIVE DIRECTOR The pandemic continued to disrupt the lives of the citizenry, the economy and public life in general during 2021. Unfortunately, a significant number of current KEMITRAAN staff were infected however there were no fatalities. I would, however, note the passing of two of our former colleagues, Dr Sanjaya Utama and Ms Emmy Hafild who sadly did succumb to COVID-19. In addition to the challenges presented by the pandemic Laode M. Syarif, Ph.D Executive Director KEMITRAAN also faced the challenge that several of its major projects concluded at the end of 2020. The organization took this opportunity to prioritize efforts to mobilize funding. In this regard, we developed some 45 concept notes and proposals. A number of these were successful in finding support. By the end of 2021 KEMITRAAN secured funding commitments to the project value at around USD 30,619,463 covering 26 new projects that will be implemented during the years 2022 - 2026. • governance reform and forest and peatland protection efforts, as well as supporting the communities that live there. In addition, KEMITRAAN also passed the recertification audit of ISO 9001:2015 proving that quality management standards have been implemented as per KEMITRAAN'S ISO Quality Objective. At the national level, KEMITRAAN signed new and strategically important Memoranda of Understandings (MoUs) and cooperation/ mutual agreements (Perjanjian Kerjasama/ Perjanjian Kerja Bersama) with several key ministries, namely: the Coordinating Ministry of Political, Legal and Security Affairs (Kemenkopolhukam) in November 2021; ⚫ the Election Supervisory Body (Bawaslu) in August 2021; ❝6 Despite limited opportunities for face- to-face and offline meetings with important stakeholders in 2021, KEMITRAAN was able to retain high-level networking and relationships with the international community, as well as key stakeholders at the national and sub-national levels. 10 At the international level, KEMITRAAN qualified for, and was acceptable as, an Ordinary National Member Organization of the UNCAC (United Nations Convention against Corruption) Coalition on 9 September 2021. This is a significant step towards advancing international cooperation in the fight against corruption. KEMITRAAN was also re-accredited by key international environmental funding programs, namely the Green Climate Fund and the Adaptation Fund. KEMITRAAN is the only Indonesian organization to be accredited by both of these funding programs. This enables us to continue and grow our portfolio of environmental | KEMITRAAN Annual Report 2021 the Director General of Regional Autonomy, Ministry of Home Affairs (Dirjen Otda- Kemendagri) in April 2021; and ⚫ the Directorate General of Village and Rural Development (Dirjen Pembangunan Desa dan Perdesaan) - Ministry of Villages, Development of Disadvantaged Regions and Transmigration. At the sub-national level, KEMITRAAN continued to work closely with provincial and district/city authorities and local non-government partners through several programmatic interventions. KEMITRAAN secured political buy-in from leaders in these local authorities for these programmes through MoUs. Work has progressed through to becoming draft local government regulations (Peraturan Bupati), and draft Head of District's Circular Letters (Surat Keputusan Bupati). These are the following programs: The integrated prevention of forest fires in Pelalawan - Riau, Pulang Pisau - Central Kalimantan and Ogan Komering Ilir (OKI) - South Sumatera. • Climate Adaptation Programmes in Pekalongan-Central Java, the Saddang River area and Bulukumba District in South Sulawesi. Partnering with relevant Government Ministries/Agencies, KEMITRAAN concluded a new Indonesia Governance Index in 6 pilot areas: • 2 provinces (Jawa Barat & Gorontalo), . • 2 cities (Tangerang City & Mojokerto City) ⚫ 2 districts (Bone Bolango, Gorontalo & Sleman, Yogyakarta) This constitutes an external validation tool for the Evaluation of Local Government Implementation (EPPD-Evaluasi Penyelenggaran Pemerintahan Daerah) managed by the Directorate General for Regional Autonomy, Ministry of Home Affairs. The pilot expands traditional fields of evaluation of KEMITRAAN's IGI to include a stronger focus on administrative coherence in the regions concerned. This project with the directorate general aims to strengthen the EPPD instrument in emphasizing a contribution to the implementation of the National Strategy for Corruption Prevention (Stranas PK). The pilot exercise will feed into a wider effort between the Ministry and KEMITRAAN to improve the EPPD instrument in order to provide recommendations that will help local governments improve their performance. Additionally, KEMITRAAN has commenced work with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (Kementerian Agraria dan Tata Ruang/ Badan Pertanahan Nasional) by conducting stakeholder mapping exercises and identifying potential reforms to current policies and legal and wider regulatory framework aimed at strengthening forest and ecosystem connectivity and management. KEMITRAAN was also able to maintain work on providing capacity building and support to local organizations including the establishment of 32 Forest Farmers Groups (Kelompok Tani Hutan/KTH) together with assessments for 18 villages identified as priority areas for social forestry programmes. The sudden decline in the country's rating and ranking on the global Corruption Perception Index is a matter of great concern. KEMITRAAN remains fully engaged in this national effort to raise the standard of integrity in the public domain. I am pleased to note that among the resources that have been mobilised for programmatic engagements in the next few years do include resources to advance the fight against corruption at national and provincial level. KEMITRAAN continued to play an active role as a facilitator and a meeting point of civil society organisations in Indonesia. In this regard KEMITRAAN led a CSO coalition in the discussions of several important government policies, including the impact of Constitutional Court decision regarding the Job Creation Law (Undang-Undang Cipta Kerja/UUCK). KEMITRAAN also led intensive discussions on climate change related issues with the government, civil society and private sector, especially on the issue of adaptation. In addition to the positive progress we made this year, there are still areas where significant work needs to be undertaken. Rates of project delivery were lower than KEMITRAAN's usual standards, and not all can be ascribed to the impact of the COVID-19. There is still more work to be undertaken in the area of communications through developing more sophisticated engagement on social media platforms such as connecting project work and findings with wider constituencies. We initiated a significant resource mobilization initiative to ensure the long-term viability of KEMITRAAN's programs, and we were successful in collecting assistance from several established and new partners. This resource mobilization effort was especially successful in securing resources that reach across KEMITRAAN's entire portfolio of priorities. Taking into account the progress made on longer-term institutional sustainability, together with a focus on redressing the challenges, we believe that KEMITRAAN concludes 2021 with great resilience and is well positioned to develop further its ongoing and new initiatives into the coming years. Laode M. Syarif, Ph.D Executive Director KEMITRAAN Annual Report 2021 | 11