Management Structure

The Letter of Agreement establishes a new management structure, aimed at strengthening efficiency and accountability, and at supporting MFP’s development as an Indonesian institution in the longer term.

Under MFP2, DFID and the Ministry of Forestry have jointly selected an Indonesian Service Provider with a strong track record in programme and financial management to administer grants, facilitate partnerships, and support policy analysis and development. The Service Provider will also be responsible for day-to-day operational management, to standards required by DFID and the Ministry of Forestry.

The Service Provider was selected through an open-bid process by a joint DFID - Ministry of Forestry selection team, against agreed criteria. Yayasan KEHATI was identified as the highest-ranking bidder, and has agreed to the essential requirements of DFID and Ministry of Forestry. These include the independence of MFP from the KEHATI Board, and the appointment of a suitably qualified team for policy analysis and facilitation. Based on the selection process, KEHATI was contracted under an Accountable Grant for a first tranche of GBP1.7 million, dated 21 February, 2008.