It is our pleasure to deliver to you the Annual Report of the SMERU Research Institute for 2005. We had a challenging year, but we have been able to accomplish our mission effectively with a strong impact on policy making.

As you go over the details presented in this report, you will see why we are so proud of our Institute. SMERU has achieved national recognition at a remarkable rate. The year 2005 marked SMERU’s significant contribution to research and policy deliberations on a range of socio-economic issues, such as the cash transfer program, poverty mapping, poverty analysis, decentralization, employment, inequality, and social security. Various stakeholders, including prominent government institutions, NGOs, and donors concerned about these issues have sought SMERU’s input. One example has been the many invitations received by SMERU to present the results of its evaluation of the cash transfer program.

Apart from our regular research activities, this year SMERU has also undertaken important capacity building activities which represents a significant milestone in SMERU’s progress. SMERU held regional workshops about “Conducting Participatory Poverty Assessments” for the local governments of Bima in West Nusa Tenggara and Central Tapanuli in North Sumatra. We also conducted training activities for parliamentary secretariat staff members. SMERU has also taken up a capacity building program for policy makers and NGO activists, at both local and central levels, on “Basic Poverty Analysis and Diagnostic for Indonesia.”

We were also flattered by one of our external evaluators who, in 2005, described SMERU as “very highly regarded across the Government of Indonesia, civil society groups, and donors, and has been pointed to, even by its main competitors, as an exemplar of bridging research and policy. Their research has taken up a unique role in the country, and is drawn upon directly by Government, civil society, and donor groups in their policy planning.” She moved on to point out that “core support to SMERU is an efficient investment with a broad range of benefits for Indonesian society.”

Despite the accomplishments already achieved, it does not stop here. We plan to continue to play a critical role in the effort to improve the lives of all Indonesians, particularly the poor and vulnerable through policy research. We will strive to confront challenges, optimize our impact, uphold and continue doing beneficial quality research, strengthen our role in bridging research and policy, and conduct effective capacity building activities if deemed necessary by our stakeholders. SMERU will maintain the confidence of our donors by exploring research methodologies and strategies that will steer our research activities in the direction that would best maximize the benefits to our stakeholders.

I am grateful to the hard work of many, especially the collaboration and joint efforts of our donors and clients, the Board of Governors, and SMERU staff members. Without them, SMERU would not be so well positioned to be one of the most credible, and recognized research institutes in the country.