The SMERU Research Institute underwent three critical transitions during 2014. First, the direct support from the Australian Department of Foreign Affairs and Trade (DFAT) to SMERU was formally transferred to one of its programs, the Knowledge Sector Initiative (KSI). Since our establishment as an independent institution in 2001, SMERU has received a core funding support from the Australian Agency for International Development (AusAID), which in 2013 was merged into DFAT. With this transfer of support, in addition to the core funding, SMERU can also access various institutional capacity building programs and activities of the KSI.

Second, 2014 was the final year of the implementation of SMERU’s 2010–2014 Strategic Plan. This meant that we had to develop a new strategic plan for 2015–2019. In developing the new strategic plan, we were assisted by Tjitra & associates as a facilitator. As a first step, Tjitra held consultations with our stakeholders, including government officials, academics, nongovernmental organizations, donor communities, as well as the private sector, to get their views on SMERU and the direction that we need to take into the future.

Another round of consultations was held with SMERU management and staff to get our own views and expectations. After these consultations, we held special sessions where several resource persons, who were considered experts in their fields, were invited to give their views about relevant aspects of our strategic plan. Finally, a special meeting of all SMERU staff was held in Bandung for four days in June to develop the draft strategic plan. After several more discussions of the draft, SMERU’s 2015–2019 Strategic Plan was finalized in December. Highlights of the strategic plan can be found in this annual report. Third, my term as the director of SMERU for the period of 2009–2014 ended at the end of July.

A meeting of The SMERU Foundation’s Board of Trustees in that month made a decision to reappoint me as the director for the second term from 2014 to 2019. Following this, I also reappointed Widjajanti Isdijoso as the deputy director of research and outreach and Hesti Marsono as the deputy director of administration and finance. This ensured a continuation of our programs and activities, in particular the development of our new strategic plan. Despite the transitions, SMERU continued to produce high quality research and engage in policy discussions with policymakers and other stakeholders as highlighted in this annual report.

Of course, this was only possible through the hard work and dedication of all staff as well as support from our donor and development partners—KSI DFAT, UNICEF, UNESCO, WFP, ACDP, PRSFDFAT, MAMPU-DFAT, Toyota Foundation, PEKKA, Bappenas, TNP2K, and UKP4. Finally, we are also grateful for the unrelenting support and encouragement from our Board of Trustees and Board of Supervisors.