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2015 PSF PROGRESS REPORT

PNPM SUPPORT FACILITY Established 2007: 10 GOI and Donor Members

The core business of the PNPM Support Facility (PSF) is reducing poverty by supporting the effective leadership and management of the Government of Indonesia’s (GOI) flagship poverty reduction program, the National Program for Community Empowerment, PNPM, which is the largest community–based poverty reduction program in the world. Through PSF, development partners provide high–quality coordinated technical assistance as well as policy and planning advice and targeted financial assistance to the GOI in support of PNPM. KEY FINANCIAL INDICATORS | 2008–2015 MILLIONS OF DOLLARS Pledges Cash Contributions Approved Project Commitments Disbursements

2008 84.4 23.0 37.4 1.8

2009 84.4 40.8 42.2 8.5

2010 155.8 131.1 90.3 36.2

2011 262.4 207.5 220.4 121.8

2012 300.8 259.1 305.4 181.2

Printed in 2016 This publication is a product of the PNPM Support Facility. Acknowledgements This report was prepared by the PSF Secretariat with contributions from the Coordinating Ministry for People’s Welfare, Ministry of Home Affairs, Ministry of Public Works, Ministry of Finance, the National Development Planning Agency, and Asian Development Bank as well as the project teams. PSF Manager: Kevin Tomlinson PSF Secretariat/Team Leader: Sonya Woo Lead Writer: Niruban Balachandran and Jackie Pomeroy Editorial Support: Irfan Kortschak (English) Graphic Designer: Bobby Haryanto PSF Office Jakarta PNPM Support Facility Tel: (+62 21) 5299 3000 http://www.pnpm-support.org/

2013 437.6 365.1 342.8 246.1

2014 453.9 392.4 403.7 298.5

2015 453.9 404 414 336

2015 PSF PROGRESS REPORT

v

TABLE OF CONTENTS

MESSAGE FROM THE CHAIR OF THE JOINT MANAGEMENT COMMITTEE

1

EXECUTIVE SUMMARY

2

PNPM MANDIRI: CORE PROGRAMS

4

PNPM RURAL PNPM URBAN RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM)

WINDOW ONE: SUPPORT TO SPECIAL PROGRAMS PNPM GENERASI PNPM URBAN IN ACEH

WINDOW TWO: IMPLEMENTATION AND COORDINATION SUPPORT PNPM RURAL IMPLEMENTATION SUPPORT PNPM COMMUNICATIONS CREATIVE COMMUNITIES II (CCII) VILLAGE TRAINING PROJECT PRO-POOR PLANNING, BUDGETING AND MONITORING (P3BM) PSF SECRETARIAT

WINDOW FOUR: M&E AND SPECIAL STUDIES M&E AND SPECIAL STUDIES PNPM MANDIRI REVOLVING LOAN FUNDS (RLFS) CAPACITY BUILDING AND SUSTAINABILITY PROJECT VILLAGE LAW SUPPORT (INDONESIA VILLAGE LAW PASA)

6 16 22

26 28 36

40 42 48 54 61 64 68

70 72 78 84

ANNEXES 91 ANNEX ONE: FINANCIAL OVERVIEW ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 ANNEX THREE: SUMMARIES OF MAJOR ANALY TICAL WORK CONDUCTED IN 2009-2014 AND IN 2015

92 94 101

LIST OF TABLES TABLE 1. OUTPUTS AS A RESULT OF THE PROVISION OF WARD GRANTS TABLE 2. INFRASTRUCTURE BUILT TO DATE UNDER RIS PNPM PROJECTS (AS OF DECEMBER 31, 2015) KEY RESULTS (AS OF 30 JUNE 2015) TABLE 3. PILLAR 1 ACTIVITIES (JMC PROPOSAL, APRIL 2015) TABLE 4. PILLAR 2 ACTIVITIES (JMC PROPOSAL, APRIL 2015) TABLE 5. PILLAR 3 ACTIVITIES (JMC PROPOSAL, APRIL 2015) TABLE 6. PILLAR 4 ACTIVITIES (JMC PROPOSAL, APRIL 2015) TABLE 7. NEW AND ADJUSTED ACTIVITIES TABLE 8. COMPLETED EVALUATIONS/STUDIES FROM 2009-2015 TABLE 9. ONGOING EVALUATIONS/STUDIES: 2015 - 2017

18 25 85 86 86 87 88 101 105

LIST OF FIGURES FIGURE 1. BLOCK GRANT EXPENDITURES ON EDUCATION FY 2015 FIGURE 2. BLOCK GRANT EXPENDITURES ON HEALTH FY 2015 FIGURE 3. SHARE OF FUNDING BY EXECUTING AGENCIES FIGURE 4. DONORS’ CONTRIBUTIONS FIGURE 5. APPROVED COMMITMENTS FIGURE 6. TOTAL DISBURSEMENT FIGURE 7. DISBURSEMENTS PERFORMANCE FIGURE 8. CY 15 DISBURSEMENT PLAN VS CY 14 ACTUAL DISBURSEMENT

31 31 93 93 93 93 93 93

vi

ABBREVIATION AND ACRONYMS ADB APBN ASA Bappenas BE BETF BGAP BKAD BKM BLM BNSP

Asian Development Bank Anggaran Pendapatan dan Belanja Negara (District Government Budget) Advisory Services and Analaytics Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) Barefoot Engineers Bank Executed Trust Fund Better Governance Action Plan Badan Kerjasama Antar Desa (Inter-Village Coordination Body) Badan Keswadayaan Masyarakat (Community Organizations) Community Block Grants Badan Nasional Sertifikasi Profesi (National Board for Professional Certification)

BPKP BPS CCII CDD CEP CHS CSO CY DFAT DGHS DG-Bina Pemdes

Badan Pengawasan Keuangan dan Pembangunan (Development and Finance Surveillance Agency) Badan Pusat Statistik (Statistics Indonesia) Creative Communities II Community-Driven Development Creative Empowerment Process Complaints Handling System Civil Society Organization Calendar Year Australian Department of Foreign Affairs and Trade Directorate General of Human Settlements Direktoral Jenderal Bina Pemerintah Desa ( The Directorate General of Village Government Oversight, the Ministry of Home Affairs) Direktorat Jenderal Pembangunan dan Pemberdayaan Masyarakat Desa (Directorate General of Development and Village Community Empowerment, the Ministry of Villages) Direktorat Jenderal Pemberdayaan Masyarakat Desa (Directorate General of Community Empowerment, the Ministry of Home Affairs) Daftar Isian Pelaksanaan Anggaran (Budget–Funded Project Proposal Lists) Disabled People Organization Disaster Risk Reduction Economic Development Financing Facility Executing Organization Export-Transfer-Load Government of Indonesia Information Communication Technology Islamic Development Bank Regional Poverty Index Just in Time Joint Management Committee Program Pembangunan Kecamatan (Kecamatan Development Program) Kementerian Koordinator Bidang Kesejahteraan Rakyat (Coordinating Ministry for People’s Welfare) Kementerian Pembangunan Daerah Tertinggal (Ministry of Disadvantaged Areas) Komisi Pemberantasan Korupsi (Corruption Eradication Commission) Local Government Capacity Development Local Level Institutions III Programmatic Analytical Services and Advisory Lembaga Sertifikasi Profesi–Fasilitator Pemberdayaan Masyarakat (Institute for Professional Certification of Community Facilitators) Monitoring and Evaluation Millennium Challenge Account-Indonesia Multi Donor Trust Fund

DG-Bina PPMD DG-PMD DIPA DPO DRR EDFF EO ETC GOI ICT IDB IKW JIT JMC KDP Kemenko Kesra KPDT KPK LGCD LLI3 PASA LSP-FPM M&E MCA-I MDTF

vii

MIS MoH MoHA MoU MoV MP3EI MP3KI MPW ND NGO NTB NTT P2KP P2SPP

Management Information Systems Ministry of Health Ministry of Home Affairs (Kementerian Dalam Negeri–Depdagri) Memorandum of Understanding Ministry of Villages, Disadvantaged Areas, and Transmigration Master Plan for the Acceleration of Economic Development Master Plan for the Acceleration and Expansion of Poverty Reduction Ministry of Public Works (Kementerian Pekerjaan Umum) Neighborhood Development Non–Governmental Organization Nusa Tenggara Barat ( West Nusa Tenggara) Nusa Tenggara Timur (East Nusa Tenggara) Proyek Penanggulangan Kemiskinan di Perkotaan (Urban Poverty Project) Program Pengembangan Sistem Pembangunan Partisipatif (Local Government Participatory Development Planning Program) P3BM Pro–Poor Planning, Budgeting and Monitoring (Perencanaan, Penganggaran Dan Pemantauan Yang Berpihak Pada Masyarakat Miskin) PMD Pemberdayaan Masyarakat dan Desa (Directorate General of Community and Village Empowerment) PMU Program Management Unit PNPM Program Nasional Pemberdayaan Masyarakat (National Program for Community Empowerment) PNPM Generasi PNPM Generasi Sehat dan Cerdas (PNPM—Healthy and Smart Generation) Pokja Pengendali Steering Committee of PNPM Posyandu Pos Pelayanan Terpadu (village health post) PSF PNPM Support Facility PTO Technical Operations Manual PWDs People With Disabilities Rekompak Rehabilitasi dan Rekonstruksi Masyarakat dan Permukiman Berbasis Komunitas (Community–Based Settlements Rehabilitation and Reconstruction Project) RESPEK Rencana Strategis Pembangunan Kampung (Strategic Plan for Village Development) RETF Recipient Executed Trust Fund RIS PNPM Rural Infrastructure Support to PNPM Mandiri RISE Regional Infrastructure for Social and Economic Development RKM Rencana Kerja Masyarakat (Annual Investment Plan) RLF Revolving Loan Fund Rencana Pembangunan Jangka Menengah Desa (Mid–Term Village Development Plan) RPJM-Desa RPJMN Medium-Term Development Plan SLB Sekolah Luar Biasa (Special Education School) SME Small and Medium-sized Enterprise SOP Standard Operating Procedure SPADA Support for Poor and Disadvantaged Areas SPKD Satuan Kerja Perangkat Daerah (Local Government Task Forces) SUSENAS Survei Sosial Ekonomi Nasional (National Social Economic Survey) TA Technical Assistance TKPKD Regional Poverty Eradication Coordination Team TNP2K Tim Nasional Percepatan Penanggulangan Kemiskinan (National Team for the Acceleration of Poverty Reduction) ToT Training of Trainers UNDP United Nations Development Programme UPK Unit Pengelola Kegiatan (Activity Management Unit) UPP Program Penanggulangan Kemiskinan Perkotaan (Urban Poverty Program) USAID United States Agency for International Development VTP Village Training Program

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MESSAGE FROM THE CHAIR OF THE JOINT MANAGEMENT COMMITTEE

RAHMA IRYANTI

DEPUTY MINISTER FOR POVERTY, EMPLOYMENT AND SMES, NATIONAL DEVELOPMENT PLANNING AGENCY/BAPPENAS

As Chair of the Joint Management Committee (JMC) of the PNPM Support Facility (PSF), I am pleased to present the PSF 2015 Progress Report. Throughout the year, PSF continued to provide high-quality, coordinated technical assistance, policy and planning advice and targeted financial assistance to the Government of Indonesia (GoI) to reduce poverty and improve service delivery across Indonesia. The transition from the National Program for Community Empowerment (PNPM) to the Village Law implementation has brought with it the potential for immense gains in reducing poverty and increasing equality. It has also, given the significant increase in fiscal transfers and pressures to government systems, especially during early implementation of the Law, brought challenges. The policy support, technical advice, intragovernmental coordination support, and enhanced implementation support provided by the PSF were extremely helpful in the 2015 rollout of the Village Law implementation.

2016 looks to be another exciting year. After the first year of Village Law implementation and with the basic systems in place to disburse funds, there will be enhanced emphasis on ensuring that funds are spent well, to reduce poverty and inequality. This will include improving the government architecture around the Village Law, deepening participation and social accountability at the village level, and continuing to address constraints in access to and delivery of good quality basic services. I would like to express my sincere thanks to fellow PSF partners in the Coordinating Ministry for Human Development and Cultural Affairs, the Ministry of Finance, Bappenas, PNPM and Village Law implementing agencies, as well as our development partners from Australia, the United States, the World Bank, and the Millennium Challenge Account - Indonesia.

The PSF’s support is highly relevant to the frontline service delivery pillar of Indonesia’s 2015–2019 National Medium Term Development Plan. Building on the successes of PNPM and PNPM Generasi projects, the PSF is implementing an increasingly robust frontline service delivery program, particularly in the delivery of health, education, and infrastructure services. Rahma Iryanti Chair, Joint Management Committee Deputy Minister for Poverty, Employment and Small & Medium Enterprises National Development Planning Agency/Bappenas

2 | 2015 PSF PROGRESS REPORT

EXECUTIVE SUMMARY After seven years of implementation, 2015 was a critical transition year for PNPM as it began its new role in supporting the Government’s implementation of the Village Law. The Government of Indonesia has built on its success with PNPM across the archipelago in strengthening community institutions and their ability to deliver cost-effective infrastructure, and to enhance access to social services and economic opportunities by institutionalizing PNPM’s principles of community driven development (CDD) in the Village Law and mainstreaming them into grass-roots development activities. The inauguration of the new government at the end of 2014 and the clarification of the plans for Village Law implementation resulted in some fundamental shifts in the program in 2015, including changes in institutional structures and human resources. Under the umbrella of the PNPM Support Facility (PSF), the Government and its partners have consulted intensely and adapted a number of activities in response to the changed environment. Overall, the effort has focused on helping communities complete and account for the remaining core PNPM activities, and supporting the Government’s development of Village law implementation including the human resources needed to carry it out in ways that are consistent with PNPM’s achievements in building community capacities, supporting livelihoods, reinforcing good governance and reducing poverty. This report presents 2015 progress in the PNPM Core programs and activities under the three (out of four) remaining operational windows. The closing of a range of pilot projects begun in 2014 continued through 2015, and the remaining on governmenting projects have been adapting to the new policy and institutional structures. PNPM Mandiri Core Programs include the Rural and Urban programs plus the Rural Infrastructure Support (RIS) program targeting 37 districts in Sumatra. All three

programs concentrated on wrapping up block grant activities and supporting the transition to Village Law. The last block grants were distributed to PNPM Rural communities in 2014, and the World Bank worked with the Government in 2015 to help communities complete remaining activities and close down the program. In collaboration with the Government, the remainder of the PNPM Rural V project was formally restructured to support the Government’s efforts to implement the Village Law. PNPM Urban disbursed their final block grants to communities during 2015 and worked to strengthen the local planning processes, including integrating existing local structures into some Village Law planning processes. The RIS program used the first half of 2015 to complete documentation and administrative processes for the physical projects completed by end-2014. PSF Window One: Support to Special Programs was designed to enable the Government to scale up successful projects and test new approaches by taking advantage of the PNPM platform’s nationwide reach and ability to deliver an array of services. Two programs remained active in 2015 under this window: PNPM Generasi and PNPM Urban in Aceh. Both programs have been carefully restructuring program activities and processes to integrate more fully into the Village Law and ensure their achievements will be sustainable. Implementation of PNPM Generasi moved from Ministry of Home Affairs (MOHA) to Ministry of Villages, Disadvantage Areas and Transmigration (MoV ) on January 1st. Activities slowed until the administrative structures and processes were formally established (including the legal ability to pay facilitators) while the project was restructured to reflect the changed implementation structures for its key health and education delivery programs. The Aceh program continues to be implemented by the Ministry of Public Works and will continue through 2016 with an emphasis on integrating inclusive planning processes as part of the transition to the Village Law.

3

PSF Window Two: Implementation and Coordination Support finances activities to support PNPM’s oversight bodies and implementing agencies, with a view to assist them to strengthen the program’s core management systems. This operational structure changed in 2015 with the end of the block grants component and the Government’s clarification in June 2015 of MOV’s responsibility for village development and community empowerment, and the World Bank worked to align the Project’s focus and activities with the new Village Law and associated regulations. The PSF implementation support team worked with the Government to develop clear guidelines for closing down PNPM, and helped to monitor their progress in the field: 98 percent of projects were completed and handed over to communities, with progress on the remainder ranging between 77 and 99 percent. The PSF team also engaged in a series of technical discussions to develop a new Village Law facilitation structure, providing guidance on the planning, design of activities, regulatory development and implementation activities. Several pilot activities were wrapped up during the year, including Creative Communities II, the Village Training Program, and the Pro-Poor Planning Budgeting and Monitoring (P3BM) Project, all focusing on conveying lessons learned for the new Village Law environment. PSF Window Three: On-granting to Indonesian Civil Society worked with civil society organizations (CSOs) to reach and work with marginalized groups and people. All of these activities were completed in 2014. PSF Window Four: Monitoring and Evaluation (M&E) and Special Studies aims to increase access to global experience and expertise in poverty reduction and community-driven development as well as the technical and financial resources for rigorous evidence gathering. The M&E team maintained its planned schedule of PNPM evaluations across the full range of activities and

added a substantial agenda of activities to support the implementation of the Village Law, including the Village Governance and Community Empowerment Study (“Sentinel Villages”), a mixed-methods longitudinal study that observes the implementation of the Village Law over a two-year period. The Revolving Loan Funds (RLF) Pilot worked with the Government before it closed in April 2015 to test and consolidate the options for legalizing the RLFs at the local level so they can be integrated into Village Law management.

PNPM MANDIRI

CORE PROGRAMS

6 | 2015 PSF PROGRESS REPORT

PNPM MANDIRI: CORE PROGRAMS

PNPM RURAL

SUMMARY INFORMATION Status

Task Team Leaders

Implementing Agency

Active

Sonya Woo (swoo1@ worldbank.org)

The Ministry of Villages, Disadvantaged Areas, and Transmigration (MoV )

Start Date to Closing Date

Geographic Coverage

20 May 2008 to 31 December 2016

67,100 villages; 5,300 subdistricts; 403 districts; 33 provinces

Approved Budget US$ 2.5 billion

PROJECT RATIONALE AND OVERVIEW Until December 2014, PNPM Rural1 served as the Indonesian Government’s flagship poverty reduction and community empowerment program. The program was implemented by the Ministry of Home Affairs (MOHA), together with the National State Planning Agency (Bappenas), the Ministry of Finance (MOF), the PNPM Mandiri Steering Committee (Pokja Pengendali), and other government agencies. The program’s development objectives are for villagers in PNPM Rural locations to benefit from improved local governance and socio-economic conditions. The program empowered villages and communities to identify and implement cost-effective, pro-poor, and productivity-enhancing village infrastructure sub-projects. The activities included the construction of infrastructure, revolving loan funds (RLFs), and training activities, with all of these activities supported by an extensive facilitation network. PNPM Rural has been supported by consecutive World Bank loans since its predecessor program, the Kecamatan Development Project, was first implemented in 2008. Additional grant funding for pilot programs are provided by the Governments of Australia and the United States of America and the Millennium Challenge Account-Indonesia through a Government and Multi-Donor Support Facility known as the PNPM Support Facility (PSF). The program involves three main components, as follows: (i) the provision of block grants for investment in physical infrastructure, to facilitate revolving loan funds, and to deliver training activities; (ii) community empowerment and facilitation; and (iii) implementation support and 1 Program Nasional Pemberdayaan Masyarakat Mandiri Perdesaan

technical assistance. Up until December 2014, the program provided block grants directly and transparently to communities to finance poverty alleviation activities selected from an open menu. Activities were identified and selected through a gender-inclusive community participatory planning process. The program strengthened the capacity of national and local governments and their agencies to partner with civil society and community-based organizations in order to improve the delivery of basic services. PNPM Rural was intended to be a nationwide program and has expanded rapidly since its launch, currently covering more than 67,000 villages across Indonesia. The average annual budget of the program in the period from 2009 to 2014 is US$ 1.03 billion, including state, provincial and district budgets and loan funds, with the proportion of the latter averaging at 35 percent of the total for PNPM Rural (2008-2014). While the Government provides the vast majority of the funding for the project, the World Bank has continued to contribute to the financing of PNPM Rural through the PNPM Rural 2012-2015 (US$650 million). Following the promulgation of the Village Law in 2014, the process of phasing out the PNPM program began in 2015, with the new Law now providing the legal framework for community development programming. While the objectives of the Village Law are similar to the development objectives of PNPM Rural, the new Law poses significant new challenges, in terms of both scope and scale, as it involves the comprehensive institutionalization of the principles of community-driven development into government structures down to the village level. In June 2015, the Project was restructured in accordance with the Government’s decision to transfer the mandate for matters related to village development and community empowerment from Ministry of Home Affairs (MOHA) to the Ministry of Villages, Disadvantaged Areas

PNPM Rural | 7

8 | 2015 PSF PROGRESS REPORT

and Transmigration (MOV ) and to align the Project’s focus and activities with the new Village Law and associated regulations. The PNPM Rural project’s closing date was therefore extended from December 31, 2015 to December 31, 2016, in order to give the Government additional time to complete PNPM closure activities and to manage the transition to the new context created by the Village Law.

PROGRESS IN 2015 As of December 2014, more than 93 percent of the final and total block grant budgets for FY2014 had been disbursed from the Ministry of Finance to the PNPM sub-district Activity Management Units (UPKs). After some initial delays following the program’s restructuring in June 2015, the program continued to make steady progress towards the achievement of its development objective. Key actions have been taken by MOV to implement PNPM closure activities and to bring previously-suspended Components 1 and 2 back on track. The final results for activities completed under Component 1 are now being evaluated. Key activities under Component 2 (Community Empowerment and Facilitation) and Component 3 (Implementation

Support and Technical Assistance) that were suspended at the beginning of January 2015 due to the program’s transition under the Village Law, have recommenced. As of July 1, some 10,500 former PNPM facilitators (about 84% of the total number) were reinstated by the MOV; the project’s National Secretariat was established; and new management oversight and technical assistance arrangements in the form of 10 Administrative Service Firm (ASF) contracts were re-procured and awarded in November 2015.

PNPM CLOSURE Overall, good progress is being made in terms of the activities required to facilitate the closure of PNPM Rural. Project reports show that 98 percent of villages have handed over all infrastructure sub-projects to communities in accordance with the established handover guidelines, or Musyawarah Desa Serah Terima (MDTS) requirements. The remaining two percent of villages are spread across 28 provinces, with the rate of progress towards completion currently ranging from 99 percent to 77 percent. Lagging provinces such as North Kalimantan and North Sulawesi may require additional assistance to ensure that all sub-projects are closed and

PNPM Rural | 9

handed over in compliance with the program’s closure guidelines. Local governments are helping to ensure that the closure activities are executed appropriately, with the formulation of appropriate inventories of all of PNPM’s assets by the facilitators. However, the following key risks may affect MOV’s capacity to successfully complete the closure of the PNPM program by the end of 2015: zz A third of all provinces have a facilitator vacancy rate in excess of 20 percent, with some sub-districts reporting vacancy rates as high as 40 percent. These high vacancy rates may impede the implementation of closure activities; zz In several provinces, undisbursed block grants (BLM) and operational funds (Dana Operasional Kegiatan/DOK) balances remain idle in Sub-District Activity Management Unit (UPK) accounts, and outstanding RLF funds exist. While MOV has reported that all RLF balances have been validated, a policy on how sub-districts should deal with these account balances and outstanding balances has not been finalized, thereby putting funds at risk and further delaying the financial and administrative arrangements related to the closure of PNPM. There is an urgent need for Bappenas, MOV and PMK to work together to prepare a Ministerial Regulation to ensure RLF balances are prudently handed over to communities and to legitimize the legal status of the RLF ; zz According to data obtained from 17 provinces, 2,583 fraud and corruption cases involving funds to a total value of Rp 113.9 billion remain unresolved. zz 1,400 of 1,915 previous BPKP Audit findings amounting to Rp 60.46 billion needs to be refunded to the State Treasury; and zz The Project’s Intermediary Results Indicators (IRIs) need to be updated and the annual report for 2015 compiled and submitted to the World Bank for verification. Surveys to verify the program’s final outcome values are now being conducted. However, as of November 2015, the MOV reported that the program has already achieved or exceeded three of six targets defined in terms of the Project Development Objective (PDO)-level results indicators. Since 2012, project reports demonstrate a steady increase in the number of community members involved in participatory and democratic forums for planning, implementing and overseeing development activities to more than 3.8 million (against a target of 3 million). These reports also indicate that the number of project beneficiaries has increased from 25 million to 25.7 million and that the percentage of women

beneficiaries remains on target at just over 50 percent. Furthermore, Bank supervision missions have consistently confirmed beneficiary satisfaction levels percent in terms of the prioritization and quality of infrastructure financed under Component 1 at levels higher than the target projections of 80 percent. However, the lack of routine reporting on the program’s IRIs is a cause for concern, since this needs to be completed before the program evaluation can be finalized.

VILLAGE LAW TRANSITION Nationwide implementation of the Village Law began in January 2015, the beginning of the Government’s fiscal year. However, overall progress has been slow. While the disbursement of funds began in April, systems for the provision of mandated technical assistance to villages are not yet fully operational; socialization of the Law at the village level and training of the village government officials and facilitators has been delayed; and there are still gaps in the sub-national regulatory framework. All of these factors are continuing to affect the implementation of the Law at the local and village levels. The new institutional arrangements are complex, with the situation further exacerbated by a lack of coordination between ministries to manage the implementation of the Law. The Government, through Presidential Regulation No. 12/2015, has assigned the mandate for village development and community empowerment activities to the MOV. However, according to Presidential Regulation No. 11/2015, the MOHA is still responsible for managing village government affairs. At the same time, MOF remains responsible for fiscal transfers, while Bappenas (and indirectly, individual sectoral ministries and district and village governments) is responsible for improved service delivery. To address issues related to sub-optimal coordination, the Government has established the PNPM Acceleration and Termination and Village Law Coordination and Implementation Teams, chaired by the Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan (Coordinating Ministry for Human Development and Culture). However, the level of coordination, policy integration, and oversight still needs to be improved.

FUTURE PLANS Revised Facilitation Structure: Throughout 2016, additional facilitators will be recruited and provided with pre-service training under the Village Law. The increase in the number of facilitators in 2016 is required because

10 | 2015 PSF PROGRESS REPORT

the Village Law mandates an expansion of coverage to approximately 1,100 more sub-districts than those involved in PNPM. In addition, additional resources are being invested at the local level to meet the need for the deployment of village facilitators (pendamping lokal desa, PLDs), a newly-created position. The new facilitation structure is broadly similar to the structure implemented under PNPM, but with the addition of an extra layer. The new layer of facilitation is still sub-district based, but involves direct, routine interaction between facilitators and communities to address concerns, participation, transparency, and accountability issues at the village level. In addition, there will be four to six district facilitators (tenaga ahli pemberdayaan, TAPDs) in each district; and at least two village facilitators in each sub-district, of whom one must be a qualified engineer. There is a need to recruit approximately 21,000 village facilitators. With the delays to the recruitment of the remaining facilitators, the achievement of projected recruitment targets (and targets related to their attendant training needs) appears to be challenging. However, it is still feasible for MOV to resolve these challenges if it commences with the recruitment process as soon as possible. The first tranche disbursement of the annual Dana Desa does not begin until April 1 of each year, which gives the MOV limited time to hire and carry out the pre-service training that is required. 2016 Budget and Work Plan: On October 28, 2015, the MOV’s total budget for 2016 was confirmed at Rp 8.7 trillion, inclusive of Rp 1.8 trillion (US$130 million) of World Bank funding. This falls significantly short of MOV’s expected needs. The MOV’s budget estimate for the funding required to deploy facilitators alone in 2016 is Rp 2.7 trillion (US$190 million), including the funding required for the deployment of the village facilitators. This estimate covers facilitators’ remuneration and allowances and the costs for their selection, mobilization-demobilization, and operational expenses, but not for their training. To meet the costs associated with training, the ongoing World Bank Loan has sufficient remaining funds (Rp 1.3 trillion, or US$95 million), which could augment the Rp 1.8 trillion budget for 2016. It has been agreed that the Rp 1.8 trillion budget and Loan balance would be utilized to finance the contracting of administrative service firms and to provide technical assistance to develop new management arrangements within MOV to support Village Law community empowerment activities, including the payment of facilitator salaries; the provision of training for facilitators; the implementation of socialization activities; the provision of training for community-based institutions and civil society organizations; provincial-level

coordination meetings; research and civil-society engagement; the development of a Management Information System (MIS) for facilitation monitoring and reporting; and, possibly, for the payment of salaries to village facilitators, subject to an agreement being reached on the terms and conditions of their engagement.

LESSONS LEARNED Lessons from PNPM Rural provide valuable insights that may inform the implementation of the Village Law: The quality and coverage of facilitation in the field is critical for successful program implementation, playing a vital role in issues ranging from information dissemination, community mobilization, and the provision of technical and monitoring support. While the roles and responsibilities of facilitators need to be redefined in the context of the implementation of the Village Law, with the provision of the necessary capacity-building support, the allocation and placement of facilitators will need to take into account geographical and population factors in order to increase implementation effectiveness. Under PNPM Rural, the facilitation system was already coming under significant strains, with some facilitators reporting that they spent more than 50 percent of their time traveling to remote locations. The recruitment of high-quality, competent facilitators is just as important as allocating the right number of facilitators to each location. However, a balance needs to be sought between the number and the quality of facilitators, especially in remote locations in areas such as Papua, where the identification and recruitment of technical facilitators with appropriate qualifications has been challenging. In such cases, recruiting candidates with a lower level of qualifications and providing these candidates with additional pre-service training and mentoring by more experienced facilitators at the sub-district and district levels may help to bridge these gaps.

PNPM Rural | 11

KEY PERFORMANCE INDICATORS Result Indicators

Unit of Measure

Baseline

Total Target

Targets(Cumulative) 2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: For villagers in PNPM-Rural locations to benefit from improved local governance and socio-economic conditions Households have low-cost access to infrastructure or services selected by the community

Percentage

-

80%

80%

80%

80%

80%

n/a

n/a

n/a

Economic impact simulation evaluation ongoing. Result will be available by the end of March 2016

Communities are involved in participatory and democratic forums for planning, implementing and overseeing initiatives that directly address local development priorities

Number

2.27 million

3 million

2.27 million

2.5 million

3 million

3 million

3.87 million

3.87 million

+0.87 million

Projects funded by PNPM provide economic benefits (direct and indirect) for community members

Amount (USD)

-

10% increase at the end of project (not in US$)

10%

10%

10%

10%

n/a

n/a

n/a

Baseline not previously tracked systematically or compiled. Economic impact simulation evaluation ongoing. Results will be available by June 2016

Beneficiaries feel project investments reflect their needs

Percentage

-

80%

80%

80%

80%

80%

n/a

n/a

n/a

Baseline not previously tracked systematically or compiled. Economic impact simulation evaluation ongoing. Result will be available by June 2016

Direct project beneficiaries

Number

30 million

30 million

30 million

30 million

30 million

30 million

2.57 million

2.57 million

-0.5 million

Based on the MoHA’s quarterly report of December 2014. Verified by PROTAN system (project’s database). Shortfall attributed to delays in receiving data from the field.

Change in productivity and/ or lower cost of access

Percentage

-

10%

10%

10%

10%

10%

n/a

n/a

n/a

Baseline not previously tracked systematically or compiled. Economic impact simulation evaluation ongoing. Result will be available by June2016

Cost savings over regular procurement

Percentage

56%

35%

35%

35%

35%

35%

20%

20%

-15

Female beneficiaries

Percentage

48%

50%

50%

50%

50%

50%

50.40%

50.40%

+0.40%

12 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS Result Indicators

Unit of Measure

Baseline

Total Target

Targets(Cumulative) 2013

Local-level multipliers

Number

1.17

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

1.20

1.20

1.20

1.20

1.20

n/a

n/a

n/a

Comments on progress

Economic impact simulation evaluation ongoing. Result will be available by June 2016.

Component 1: Kecamatan Grants % of poor community members who participate in planning, decision-making

Percentage

45%

45%

45%

45%

45%

45%

51.40%

51.40%

+6.40%

% of participants in planning and decision-making meetings who are women

Percentage

50%

50%

50%

50%

50%

50%

49.7%

49.7%

-0.3

> 85% of work plans completed in one program cycle (18 months> 85% of work plans completed in one program cycle (18 months

Percentage

85%

90%

90%

90%

90%

90%

99%

99%

+9%

% of infrastructure works of high quality

Percentage

67%

80%

75%

80%

80%

80%

79%

79%

-1

No further updates received since September 2014 so results retained. However, this result will be verified by the Project’s final evaluation, which will be completed by June 2016.

% of infrastructure works utilized by community members

Percentage

-

90%

90%

90%

90%

90%

96%

96%

+6

No further updates received since September 2014 so result retained. Data obtained from village infrastructure utilization monitoring report (forms 28, 66, 67 1-J )

Sub-projects for which O&M arrangements involving community members are established and functional

Percentage

85%

85%

85%

85%

85%

85%

84%

84%

-1

As per National Management Consultant (NMC) QPR for end of September 2014, so results retained. Data obtained from maintenance Team Quality Monitoring Report (Forms 28, 66, 67 1-j)

PNPM Rural | 13

KEY PERFORMANCE INDICATORS Result Indicators

Unit of Measure

Baseline

Total Target

Targets(Cumulative) 2013

% of RLF Percentage groups that are evaluated as mature/ ready to be channeled to regular financial institutions.

5%

10%

5%

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

7.5%

10%

10%

9.10%

9.1%

+1.6

Comments on progress

No further updates received since September 2014 so results retained. Data obtained from UPK special report.

Component 2: Community Empowerment and Facilitation -

30%

10%

20%

30%

30%

50%

50%

+30

% of villages Percentage which are assisted to review their mid-term village development plans.

60%

70%

65%

70%

70%

70%

3%

3%

-67%

No further updates received since September 2014, so results retained. Data obtained from Village Medium Term Development Plan drafting assistance report.

Percentage

60%

65%

60%

65%

65%

65%

73%

73%

8%

No further updates received since September 2014 so results retained. Data obtained from Report on the Number of BPUPK Conducting Annual Audits and District Facilitator/Faskab report on Monitoring results of BP-UPK Audit.

% of BKAD Percentage that conduct supervision and M&E

40%

50%

45%

50%

50%

50%

88%

88%

+38

No further updates received since September 2014 so results retained. Data obtained from Report on Number of Badan Kerjasama Antar Desa (BKADs) Conducting Supervision and Monitoring. Report on Monitoring results of the District Facilitator/ Faskab Team on Supervision and Monitoring.

% of villages Percentage with a functional community oversight team

50%

60%

55%

60%

60%

60%

72%

72%

+8

No further updates received since September 2014 so results retained. Data obtained from Report on Results of Evaluation Team 18.

% of districts that link their progress reports to the local government’s website

% of BP-UPK that conducted audit minimum once a year.

Percentage

14 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS Result Indicators

Unit of Measure

Baseline

Total Target

Targets(Cumulative) 2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

% of members of the community oversight team who are women

Percentage

30%

30%

30%

30%

30%

30%

32%

32%

+2

No further updates received since September 2014 so result retained. Data obtained from report on Results of Evaluation Team 18.

% of villages with updated information boards

Percentage

70%

80%

75%

80%

80%

80%

87%

87%

+7

No further updates received since September 2014. So results retained. Data obtained from Special Report by Information, Education and Communication (IEC) team.

# of SPP group funded

Number

-

13400

13000

13500

13500

13400

9206

9206

-4294

No further updates received since September 2014 so results retained. Data obtained from UPK Special Report

% of UPKs that are evaluated as healthy administratively and financially for RLF

Percentage

60%

70%

65%

70%

70%

70%

57%

57%

-17

Result slightly adjusted/corrected from June 2015 report but no further updates received since September 2014. Data obtained from UPK Special Report

% of Non Performing Loans (Collectability 2-5)

Percentage

23%

12%

23%

18%

12%

12%

34%

34%

+22

Result slightly adjusted/corrected from June 2015 report but no further updates received since September 2014. Data obtained from UPK Special Report.

Component 3: Implementation Support and Technical Assistance % of corruption cases that are resolved

Percentage

40%

50%

40%

45%

45%

50%

29%

29%

-16

Based on MOHA’s QPR of December 2014. Verified by Complaints Handling System Monthly Report (Form 7).

% of sub-districts audited each year and for which the results are published.

Percentage

20%

20%

20%

20%

20%

20%

29.90%

29.9%

-9.9

Based on BPKP Audit Report and Internal Audit. Audit reports are also published on the Government’s website.

PNPM Rural | 15

KEY PERFORMANCE INDICATORS Result Indicators

Unit of Measure

Baseline

Total Target

Targets(Cumulative) 2013

% of provinces that provide complete monthly reports in timely manner

Percentage

70%

90%

90%

2014

90%

2015

90%

2016

90%

Delivered in 2015 (only)

100%

Cumulative Progress as of Dec 31, 2015

100%

Difference with cumulative target for 2015 +10%

Comments on progress

No further updates received since September 2014. Data obtained from Report on Provincial Report Submission Monitoring by Regional Management Consultant (RMC).

16 | 2015 PSF PROGRESS REPORT

PNPM MANDIRI: CORE PROGRAMS

PNPM URBAN

SUMMARY INFORMATION Status

Task Team Leaders

Executing Agency(ies)

Active

George Soraya (gsoraya@worldbank. org) Evi Hermirasari (ehermirasari@ worldbank.org)

The Directorate General of Human Settlements (DGHS), The Ministry of Public Works and Housing

Start Date to Closing Date

Geographic Coverage

PNPM Urban 2012-2015: March 1, 2013 to December 31, 2016

10,924 urban wards in 268 cities/districts

Approved Budget US$ 708 million

PROJECT RATIONALE AND OVERVIEW The development objective of PNPM Urban is to ensure that the urban poor benefit from improved socio-economic and local governance conditions. This objective is achieved by: (i) facilitating the formation and institutionalization of elected representative organizations that are accountable to communities; (ii) providing grants directly to communities to transparently finance poverty-reduction activities, especially the development of infrastructure services; (iii) enhancing the capacity of central and local governments to engage in partnerships with community organizations to provide infrastructure and other services; and (iv) raising awareness of measures to mitigate disaster-related risks and mainstreaming measures to achieve resilience in the face of such risks. The Urban Poverty Project (UPP), the predecessor to the PNPM Urban program, was established in 1999 in the context of the economic collapse at the time to facilitate the rapid, direct transfer of resources to poor members of urban communities. In August 2006, on the basis of UPP’s demonstrated success in achieving its development objective, the Government took the decision to scale up the program to achieve nationwide coverage through a single community-driven poverty reduction program. On the basis of this decision, PNPM Urban was first implemented in 2008. Since then, the program’s coverage has been expanded to reach 11,000 wards in urban areas, directly benefiting approximately 26.7 million individuals. The total value of funding for the PNPM Urban program in the period from its inception to 2012 stood at approximately US$ 1 billion. The program is funded through the Indonesian Government’s own funds and through loans provided by the World Bank and the Islamic Development Bank.

The project consists of four main components, as follows: (i) Capacity Building for Communities and Local Governments: This component involves the provision of training to build community capacities and of support for workshops and facilitation for staff of Community Organizations (Badan Keswadayaan Masyarakat, BKM) and revolving loan funds (RLFs); (ii) Kelurahan Grants: This component involves the provision of grants to participating kelurahan to co-finance sub-projects identified through participatory community development planning processes; (iii) Implementation Support and Technical Assistance: This component provides support to build the capacities of staff of Program Management Units (PMUs) and other community groups and to implement monitoring and evaluation activities; (iv) Contingency for Disaster Response: This component provides funding to support and implement rapid response measures in the context of disasters, emergencies and/or catastrophic events by facilitating the rapid reallocation of loan funds in the case of such events. These components support the implementation of the PNPM Urban regular program in 11,000 wards, with each of these wards receiving ward grants ranging in value from Rp 50-200 million annually. In addition, a number of special programs have been implemented under PNPM Urban, including the Neighborhood Development (ND) program; the Sustainable Urban Livelihoods program; a community-based disaster risk management program; and the Selaras Program, a gender mainstreaming program in Aceh. The Neighborhood Development Program: The ND program focuses on upgrading urban facilities to benefit the poor at the neighborhood level. This program utilized a combination of programmatic (involving three-year

PNPM Urban | 17

Riverbank upgrading in Pekalongan, Central Java

plans); integrative (involving a package of investments, such as housing, drainage systems, and roads); and spatial (using evidence-based urban planning) approaches. This program resulted in a significant increase in the average value of ward grants, from Rp 50-200 million under PNPM Urban to Rp 1 billion under ND. The program underwent a process of rapid expansion, with coverage increasing from 18 wards in 2007 to 785 wards in 2015. Since 2014, the ND program has focused on upgrading slum areas in large cities and metropolitan regions across the country by providing funds to develop tertiary (or neighborhood level) infrastructure and to raise community awareness regarding the importance of a safe, comfortable and healthy living environment. The Sustainable Urban Livelihoods Program: This program has been piloted in 56 wards across 14 cities. The program focuses on enabling livelihoods by providing support to community groups to participate in training related to household financial management, micro-credit management and micro-business entrepreneurship. Amongst other benefits, this program was intended to address identified weaknesses in the implementation

of revolving loans funds under PNPM Urban. Under the Livelihoods program, special facilitators have been assigned to facilitate livelihoods activities amongst community groups. The Disaster Risk Management program: As of May 2013, this program was piloted in 26 wards in six disaster-prone cities, these being Padang, Bandar Lampung, Manado, Gresik, Surabaya, and Sidoarjo. The program aims to build the capacities and to increase the awareness of local governments and communities on matters related to disaster risk mitigation and to mainstream measures to build resilience. The pilot also provides funding for sub-projects to mitigate disaster risks, including risks related to fire and flash floods, in several cities. The Selaras Program in Aceh: This program covers 426 villages in 12 districts/cities across the province of Aceh. In the period from 2013 to 2014, the program focused on developing a gender responsive approach to community planning within the core PNPM Urban program. During this period, each participating village

18 | 2015 PSF PROGRESS REPORT

received funds to a value of Rp 150 million per year to finance the operational costs of BKMs, community training, and infrastructure and social investments.

PROGRESS IN 2015 All grants under the PNPM Urban program have been fully disbursed, with these funds fully utilized by the end of the year in 10,924 wards. In 2015, PNPM Urban focused exclusively on the disbursement and utilization of grants and on the assessment of infrastructure quality. Community-level activities, such as the election of BKMs, community meetings, and reporting of implementation results, continued throughout the year. A number of BKMs have played a significant role in the implementation of the new Village Law. For example, in Aceh and Central Java, BKMs have been included as part of the Village Planning Team (Tim Perumus RPJM Desa), with the three-year poverty reduction plans prepared by BKM at the ward level (PJM Pronangkis) being widely used as a reference for the development of the mid-term village development plan (RPJM Desa) mandated under the Village Law. The following table 6 describes the outputs as a result of the provision of ward grants:

Table 1. Outputs as a result of the provision of ward grants Type of infrastructure sub-project km of roads

UPP (19992007)

PNPM Urban (20082014)

PNPM Urban (2015*)

Total PNPM

13,132

15,534

3,704

97

71

-

71

168

303

-

303

# safe drinking water

55,787

176,246

- 176,246

# public toilets and washing facilities

34,745

109,295

41,156 150,451

# electricity

km of bridges km of irrigation channels

19,238

20,966

51,534

18,302

69,836

# market facilities built/rehabilitated

280

98,368

-

98,368

# solid waste and sanitation facilities

32,621

22,607

5,752

28,356

# houses rehabilitated(poorest)

47,029

92,935

4,459

5,203

km of drainage system

31,551 124,486 1,265

6,468

Source: Management Information System (MIS) of PNPM Urban (www.p2kp.org) * Data as per September 30, 2015

In 2015, the program implemented measures to strengthen cooperation between central and local governments and between communities and non-government sectors, with district governments working in collaboration with community stakeholders to prioritize investments for implementation in selected wards. This initiative is expected to develop a higher level of synergy in the area of the planning and programming of investments to support the implementation of city and ward-level slum alleviation programs. The program developed collaborative mechanisms to strengthen the role of local governments. In addition to the criteria established by PMU, local governments develop their own criteria to select slum areas eligible to receive grants. A number of local governments expressed their willingness to integrate this process into the RPJMD.

Neighborhood Development (ND) In total, 785 wards received grants under the ND program in the period from 2007 to 2015. During 2015, activities implemented under this program were still ongoing in approximately 500 wards. Ward grants to a total value of approximately US$ 5 million were allocated to support activities in participating wards. In total, funds to a value of approximately US$ 30 million were used to develop infrastructure and services, including roads (653,000 m), drainage facilities (250,000 m), house rehabilitation (2,500 units), sanitation/public toilets (4,100 units), water supply (49,000 m), sewerage channels (33,000 m), and waste disposal facilities (11,800 unit). As a result of the implementation of this program, local governments increased their level of involvement and modified community settlement plan (CSP) to address slum issues. A portion of the funding provided under this program were utilized to develop economic and social facilities, including education and health facilities, and public space. On average, communities and local governments have contributed to approximately 15 percent the total cost of the investments implemented under this program. While the project generated significant benefits, the need for improvements were noted in a number of areas, including the level of participation of women and poor members of communities; the level of commitment of local government; the quality of CSP; and the prioritization of investments.

The Sustainable Urban Livelihoods pilot This pilot is being implemented in 56 wards in 14 cities. In 2015, approximately 142 community groups were established, with the combined membership of these groups amounting to 1,600, with 87 percent of these

PNPM Urban | 19

members being women. The targets in terms of the project’s KPIs had been achieved by the end of the year, including targets related to the holding of regular group meetings, the attendance rate at these meetings, the level of regular savings, and bookkeeping practices. Community groups in around 40 wards have started to conduct internal lending within these groups, utilizing their saving and project funds.

The SELARAS Program in Aceh In 2015, funds to a value of approximately US$ 9 million were disbursed, of which approximately 70 percent had been utilized by the end of the year. Satisfactory results were achieved in the area of levels of women’s participation in the community meetings (83%); the level of involvement of women in decision making, as determined through the activity levels of women as gender focal points (65%); proportion of women members of community planning teams (55%), and the proportion of women serving as leaders of community groups (54%). Approximately 95 percent of the grants disbursed under the Selaras program have been utilized for the development of infrastructure subprojects, with the remaining 5 percent utilized to fund social activities, including the provision of support for the delivery of public health and education services. A more detailed description of activities implemented under the Selaras program is included in the PNPM Urban in Aceh report. Community Based Disaster Risk Management (DRM) The DRM pilot was implemented in six cities and 26 wards. The GFDRR grant was closed on 31 December 2015, with the implementation of the project completed at that point. The technical guidelines, training modules and materials to build the capacities of facilitators on issues related to DRM have been made available for implementation in other locations. Good results were achieved in terms of building awareness of issues related to DRM and providing funding for investments and sub-projects intended to mitigate disaster risks. Challenges were identified in the area of the mainstreaming of the CB-DRM to PJM/RPLP, particularly in locations without significant experience in disaster management and with a high turnover rate for facilitators.

Support preparation of the National Slum Upgrading (NSU) Program In response to a request from the Government, the World Bank has extended the closure date for the PNPM Urban project (Ln-8213) from December 31, 2015 to December 31, 2016, with this extension intended to support the transition to the Government’s NSU program

by optimizing certain elements of the PNPM Urban Program. Through the National Mid-term Development Plan 2015-2019, the Ministry of Public Works and Housing has made a commitment to improving conditions in approximately 38,431 hectares of slum areas across the country. The NSU’s overall development objective is to improve access to urban infrastructure and services in targeted slums by 2019. This slum alleviation program will build on the structures developed under the PNPM Urban program and the experiences of this program to support its implementation. To prepare for the implementation of this program, a nation-wide slum profiling exercise commenced in September 2015. The profiling process was conducted in approximately 11,067 urban wards, with this process involving the gathering of data related to the socio-economic conditions of households and land and housing status; with classification of slum areas based on seven criteria, these being access to roads; access to clean water; access to sanitation facilities; access to solid waste disposal facilities; availability of drainage; quality of housing; and the existence of fire protection facilities. The results of the slum profiling exercise can be accessed through the PNPM Urban website (www.p2kp.org).

FUTURE PLANS In 2016, the following activities will be implemented under the PNPM Urban program: zz Training on operations and maintenance will be provided to PNPM Urban facilitators and consultants by the end of the first semester of 2016; zz Complete overhaul of MIS data will be implemented by the end of June 2016; zz Studies and evaluations on project outcomes, including gender and disaster studies, will be completed by December 2016; zz Remaining ward-level ND grants will be utilized, CSP will be reviewed, and studies related to the implementation of ND will be completed by December 2016; zz Advanced facilitation will continue to be provided to support the implementation of the livelihoods pilot activities, including through improvements to guidelines and the provision of capacity building materials; zz A final report on the community-based DRM pilot will be conducted and a mechanism for mainstreaming the pilots approach in PNPM Urban locations will be developed by June 2016; zz Support to prepare for the implementation of NSUP

20 | 2015 PSF PROGRESS REPORT

in 154 cities will continue to be provided, especially through the provision of assistance to develop Slum Improvement Action Plans (SIAPs); the provision of support to build the capacities of local government agencies and community groups; and the provision of technical assistance.

LESSONS LEARNED Throughout the period in which it was implemented, PNPM Urban and its predecessor program, UPP, have been demonstrated to be an effective and efficient means to build and/or improve tertiary (neighborhood-level) infrastructure. Under PNPM Urban, a number of advanced interventions have been implemented to address complex urban problems, such as slum alleviation and disaster management, through programs such as ND and the community-based disaster risk management program. Lessons learned through the implementation of the program have served as input for the development of the National Slum Upgrading Project (NSUP). The experience of BKM in preparing community development plans has played a major role in developing the capacities of village governments to formulate medium term village development plans. Under the new Village Law, such plans are required as the reference point for the utilization of village funds. Some local governments have adopted the PNPM Urban planning cycle to ensure the participation of communities in the formulation of these village plans. The CSPs that were developed under ND have been effective as a means to address settlement and tertiary infrastructure issues at the ward level. However, it has been found that wards with more complex settlement problems, including those with significant areas of slums, cannot address these issues solely through interventions implemented at the ward level. Rather, the CSPs need to be integrated with the city-level settlement plans, with these plans establishing connections between tertiary infrastructure and city-wide systems and taking into account the needs and aspirations of communities at a wider level. Local governments have played an increasing role in the selection of priority areas and the implementation of the program in partnership with facilitators, urban planners and communities. However, it has been found that there is a significant variation in the capacity of local governments to implement urban upgrading projects. Therefore,

capacity building activities need to be tailored to meet the specific needs of different local governments. It was found that members of community group received significant benefits from their participation in livelihoods pilots to provide training in matters related to household financial management (savings and credit); to improve access to microloans; and to manage group dynamics. However, it was also found that improvements need to be made in a number of areas, including in strengthening the involvement of facilitators and community volunteers in KSM (Kelompok Swadaya Masyarakat, community beneficiary group) meetings; engaging private institutions and/or civil society organizations to provide skills/vocational training and facilitate micro-business development for group members; and facilitating linkages to markets and optimizing internal resources within groups or communities.

PNPM Urban | 21

KEY PERFORMANCE INDICATORS Targets (Cumulative)

Result Indicators

Unit of Measure

Baseline

Total Target

2012

2013

2014

Delivered in 2015 (only)

2015

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To ensure that poor benefit from improved socio-economic and local governance conditions. Improved access to infrastructure, economic and social services in at least 80% kelurahan (wards) in 2013

# of kelurahan

-

Min 80% satisfaction levels from beneficiaries regarding improved services and local level governance

% of kelurahan

-

> 80%

-

Infrastructure built is at least 20% less expensive than that built by non-community based approaches in at least 80% of participating kelurahan

# of kelurahan

-

4,080

Min 90% of complaints are resolved

% of com- plaints

90%

4,080

-

-

4,080

-

-

-

> 80%

-

-

4,080

> 90%

> 90%

> 90%

-

Not yet due

n/a

-

Not yet due

n/a

4,080

-

33,7% less expensive in 5,965 kelurahans*

n/a

> 90%

99%

99%

+9%

To be provided at the revised project closing To be provided at the revised project closing

Component 1: (a). Organized community groups have a process for raising concerns and developing Community Development Plans. (b). Local governments deliver improved services to the urban poor Min. 40% participation rate of the poorest and vulnerable community members in planning and decision making meetings

% of poorest/ vulnerable in meetings

39% (PNPM Urban I)

>40%

>40%

>40%

>40%

>40%

47%

47%

+7%

Min. 40% participation rate of women in planning and decision making meetings

% of 42% women in (PNPM meetings Urban I)

>40%

>40%

>40%

>40%

>40%

44%

44%

+4%

Min. 30% of the adult population voting in BKM elections at the neighborhood level

% of voters

38% (PNPM Urban I)

> 30%

> 30%

> 30%

> 30%

> 30%

31%

31%

+1%

Min. 80% of local governments provide cost-sharing with a minimum of 20% cost-sharing

% of LGs

> 75%

> 80%

> 80%

> 80%

> 80%

N/A

81%

92%

+12%

Component 2: Communities receive improved access to infrastructure based on Community Development Plans Number of each type infrastructure, economic, and social activities completed in at least 80% (kelurahan wards)

% of kelu- > 80% rahans with completed infrastructure

> 80%

3,500 (70%)

4,080 (80%)

4,335 (85%)

4,335 (85%)

86%

6,141 (99%)

+14%

Total kelurahans assisted: 6617 Kelurahan

Min. 70% of infrastructure works evaluated as of good quality

% of works

70%

> 70%

> 70%

> 70%

> 70%

> 70%

96%

96%

+26%

The number in the left column is calculated from 97% of certified infrastructure

Percentage of kelurahans with revolving loan funds (RLFs) having a portfolio at risk (PAR) ratio > 90% days of < 10%

% of kelurahan

34%

> 50%

> 35%

> 40%

> 50%

> 50%

26.6%

26.6%

-23.4%

The target has not been achieved due to a Lack of clear work plans to administer RLFs, as well as insufficient Local Government support

Component 3: Consultants provide technical assistance and implementation support to the project 90% of oversight consultants (Ocs) providing timely & accurate data trough MIS

% of OCs

> 70%

90%

> 90%

> 90%

> 90%

> 90%

98%

98%

+8%

% of BKMs with completed annual financial audits

% of BKMs

> 70%

70%

> 70%

> 80%

> 90%

N/A

99.6%

99%

+9%

* Survey by NMC (National Management Consultants). The survey was conducted two times/year by comparing the five highest investments on infrastructure built by community with those built by non-community based approach in each kota kabupaten. Source: MIS Status 30 November 2015 unless otherwise specified.

22 | 2015 PSF PROGRESS REPORT

PNPM MANDIRI: CORE PROGRAMS

RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM)

SUMMARY INFORMATION Status

Task Team Leaders

Executing Agency(ies)

RIS PNPM III: Closed

Siti Hasanah (shasanah@ adb.org)

The Directorate General of Human Settlements (DGHS), The Ministry of Public Works and Housing

Start Date to Closing Date

Geographic Coverage

November 15, 2011 to June 30, 2015

600 villages in 37 districts in South Sumatra, Lampung, Riau and Jambi

Approved Budget US$ 216 million

Map 1. Provinces Covered by RIS PNPM Nanggroe Aceh Darussalam North Sumatera

The Rural Infrastructure Support to the PNPM Mandiri Project (RIS PNPM III) comprised a component of Indonesia’s core poverty reduction program, PNPM Mandiri. The RIS PNPM project applies a community-driven development approach that empowers communities and strengthens their capacities to prioritize, design, implement, and monitor community-based projects through community facilitation and development grants. Although Indonesia had successfully reduced the overall rate of incidence of poverty to about 14.2 percent by 2009, this rate is still disproportionately high in rural areas, where about two-thirds of Indonesia’s poor live. The proximate causes of rural poverty include limited access to such basic services such as health, education, clean water and sanitation facilities, capital, and infrastructure. The project was established to contribute to poverty reduction, particularly in rural areas, through the provision of improved infrastructure. This was in line with the Government’s mediumterm development plans, which emphasized the need to increase investments in infrastructure generally, and in rural infrastructure in particular. In line with the objective of the PNPM Mandiri program, the project was intended to reduce poverty and to improve local governance in rural communities in project areas. The expected outcome was improved access to service delivery and basic rural infrastructure for the poor, the near-poor, and women in the project’s target communities. To produce these outcomes, the projects had three main components: (i) strengthening capacity for community planning and development; (ii) improving village services and infrastructure through

Eas Kalima

Riau Islands

Riau

West Kalimantan Bangka Belitung

Jambi West Sumatera

Central Kalimantan

South Sumatera Bengkulu Lampung

Jakarta Special District

South Kalimant Central Java

Banten West Java

Bali Yogyakarta Special District

the provision of community development block grants; and (iii) improving the Government’s capacity for project implementation and for monitoring and evaluation (M&E).

PROGRESS IN 2015 In 2015, the main focus of the project was the completion of administrative work associated with the closure of the project, such as the preparation of withdrawal applications, reports, audits, and other similar instruments. All physical works implemented under the project were completed by the end of 2014. Overall, in the period since the project commenced in 2012, it provided support to 1,140 villages. At the point of closure of the project on June 30, 2015,

East Java

W N Ten

Rural Infrastructure Support to PNPM Mandiri (RIS PNPM) | 23

Community members using the newly constructed road to bring rice, Lahat, South Sumatra

all physical works had been completed, with the built facilities having been handed over to communities to operate and maintain. Overall, about US$ 39.6 million in loan proceeds and Rp. 2.5 billion (about US$192,000) of national government funds (Anggaran Pendapatan dan Belanja Negara, APBN) had been disbursed to finance these community investment grants in the period from 2008 to 2014. More than 1,420 km of rural roads; 1,900 bridges, 330 water supply facilities; 15 km of water pipe; 186 sanitation facilities; 169 km drainage channels; 12 km irrigation channels; 40 boat landing facilities; and two mini dams had been constructed and/or rehabilitated. Construction works had generated short-term employment opportunities of about 137,000 person-months for community members in participating villages. Approximately 78 percent of the total value of the block grants had been used to finance the construction of transport facilities; 18 percent for sanitation; 3 percent for water supply; and 1 percent for irrigation facilities. A survey conducted in September 2015 suggested that 95 percent of beneficiaries believed that the built infrastructure was in good condition and fully utilized.

The block grants resulted in tangible improvements to the level of access to basic infrastructure services for the poor, near-poor, and women in the project villages. The construction and upgrading of roads, pathways, and bridges improved the overall business conditions for informal entrepreneurs (including food-stall owners, small restaurants, and small shops) and farmers. Improved roads also provided easier and safer access for residents to their places of work (including rice fields, and rubber and palm oil plantations), contributing to reduced transportation costs generally and to improved access to local markets to deliver goods and services and to buy products, and to schools and health centers. Improved drainage systems contributed to reduced damage and losses from flooding. Additional economic benefits included improved public health outcomes and reduced per capita costs for health care and medical treatment due to the greater coverage of sanitation services and improved access to safe drinking water; greater income-generating opportunities through improved essential infrastructure; and the short-term employment opportunities resulting from the construction of village infrastructure.

24 | 2015 PSF PROGRESS REPORT

Information board at Village Sinar Pasemah, Kabupaten Lampung Selatan, Lampung

Overall, the quality of civil works observed during the field visits was deemed to be satisfactory. Approximately 360,000 households (approximately 1.4 million people) benefitted from the project (exceeding the target of 0.6 million people). Of the households that benefited, approximately 200,000 were classified as poor households. Active community participation in the preparation of upgrading and investment plans and in the construction of infrastructure contributed to strengthening good governance and local capacities for community planning and development. Involvement in the preparation of the Mid-term Poverty Reduction plans, annual investment plans, and Operations & Maintenance (O&M) documents developed village residents’ skills. This will create ongoing benefits, as these skills can be utilised in the future for the planning, designing, implementing, operating, and maintenance of other community-level projects. Interactions between community members and district officials throughout the project enabled village residents to better understand the development planning and

implementation processes in their own districts. Through these interactions, village communities established good networking relations with district officials, with these relations enabling the communities to channel their interests and ideas to the district administration into the future. On the whole, the project promoted good governance through: (i) transparent planning, procurement, disbursement, and implementation based on jointly-agreed upon procedures; (ii) well-defined institutional arrangements; and (iii) transparent mechanisms for transferring investment funds to community-managed bank accounts. The impact evaluation report (December 2015) suggested that the majority of village residents were satisfied with the delivery of services by local governments.

FUTURE PLANS The Asian Development Bank (ADB) and the Government are continuing to engage in intensive dialogue regarding future cooperation in the rural infrastructure sector.

Rural Infrastructure Support to PNPM Mandiri (RIS PNPM) | 25

LESSONS LEARNED The project generated a number of lessons learned that may inform the design and implementation similar community-driven development projects implemented in the future. These lessons include the following: Infrastructure projects funded by community block grants are solely owned and represented by the community implementation groups and Operations & Maintenance (O&M) Groups (Kelompok Pemanfaat dan Pemelihara, KPPs) in all villages. As a result, these particular assets have not been recorded in local governments’ assets lists. As an unintended result of this, this relieves local governments of the responsibility to allocate funds for future maintenance or repairs. Performance evaluations of the KPPs by the village heads and beneficiaries was mostly positive, with an example including a September 2015 survey that showed that more than 70 percent of KPPs were very active or active. Nevertheless, KPPs’ reported cash balances tend be very low. Since this means that O&M activities will require either contributions from beneficiaries and/or outside support, this raises the question of whether burdening communities with the responsibility for O&M is the best way to safeguard the long-term sustainability of the project. In addition to KPP funding issues, it was found that the sustainability of the project’s infrastructure investments is often compromised because community members do not have a complete understanding of the importance of O&M arrangements. Moreover, facilitators often leave infrastructure sub-projects soon after they are completed, which also limits the emphasis on O&M. For programs

of this nature, it is imperative to harness the convening power of local governments to facilitate the sustainability of projects through prudent O&M arrangements. Thus, future projects should consider including local governments in covenants, lending agreements, other implementation activities, and possible contributions to funding community O&M. In addition to a good selection process, performance evaluations of facilitators are also key to ensuring high-quality facilitation. Although the project utilizes a facilitator performance-evaluation mechanism through district and provincial project implementation units, community members who work directly with facilitators on a daily basis need to be provided with channels through which they may provide feedback to enable the assessment of facilitators’ performance at the field level. A number of community members have indicated that there is a need for better communication with the project’s facilitators. During field missions, it was observed that facilitators were frequently unreachable by phone and other channels, which caused understandable frustrations for beneficiaries. As a result, the team learned that face-to-face discussions with facilitators, rather than text message conversations, are communities’ most effective and preferred method of dialogue. In light of this finding, programs such as RIS PNPM should provide accountability structures where beneficiaries can openly evaluate the communicativeness and accessibility of the facilitators assigned to the projects with which they are involved.

Table 2. Infrastructure built to date under RIS PNPM projects (as of December 31, 2015) Key Results (as of 30 June 2015) Type of Infrastructure

Unit

RIS PNPM 1

RIS PNPM 2

RIS PNPM 3

Total

Rural

Km

1,636

3,282

1,416

6,334

Bridges

Unit

5,438

5,889

1,988

13,315

Boat Landings

Unit

52

61

44

157

Drainage Canals

Km

143

309

166

618

Irrigation Canals

Km

26

17

14

57

Domestic Water Reservoirs

Unit

355

458

93

906

Wells

Unit

75

1,168

1,537

2,780

Water Supply Pipelines

Km

50

48

113

211

Communal Sanitation Facilities

Unit

1,820

521

2,527

4,868

WINDOW ONE SUPPORT TO SPECIAL PROGRAMS

28 | 2015 PSF PROGRESS REPORT

WINDOW ONE

PNPM GENERASI

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Active

Robert Wrobel (rwrobel@worldbank. org)

Directorate of Basic Social Services (Direktorat Pelayanan Sosial Dasar, PSD), Directorate-General of Village Community Empowerment and Development (Direktorat Jenderal Pembangunan dan Pemberdayaan Masyarakat Desa, PPMD), Ministry of Village, Disadvantaged Areas, and Transmigration (MoV )

Start Date to Closing Date June 2013 to December 31, 2017 Geographic Coverage

Approved Budget

5,400 villages in 499 poor sub-districts in East Nusa Tenggara (NTT ), West Nusa Tenggara (NTB), West Java, East Java, North Sulawesi, Gorontalo, West Sulawesi, Maluku, Central Kalimantan, West Kalimantan, and South Sumatra provinces

US$194,724,166

Map 2. Provinces Covered by PNPM Generasi Nanggroe Aceh Darussalam North Sumatera

PROJECT RATIONALE AND OVERVIEW

Gorontalo

East Kalimantan

Riau Islands

Riau

West Kalimantan Jambi

West In mid-2007, the Indonesian Government launched SumateraPNPM Generasi to test the effectiveness of an incentivized, Bengkulu participatory block grant system to meet the health and education needs of women and children in poor, rural areas. Despite great strides made in improving key human development indicators over the past several decades, Indonesia has observed a continuous lag in terms of maternal and infant mortality, child malnutrition, junior secondary school enrollment, and education learning quality. Regional disparities have also persisted with poorer outcomes in rural and remote areas relative to urban areas. The PNPM Generasi program targets three MDGs in which Indonesia’s performance is lagging: (i) achievement of universal basic education; (ii) reduction in child mortality; and (iii) improvement in maternal health, with its stated development objective being to empower local communities in poor, rural sub-districts in project provinces to increase the utilization of health and education services. With the inclusion of the 130 new sub-districts in three new provinces, namely West Kalimantan, Central Kalimantan and South Sumatra, the program now operates in 11 provinces in 499 sub-districts throughout Indonesia.

With the help of local facilitators, PNPM Generasi provides funds to enable communities and local health and education providers to work together to identify pressing constraints on the provision and use of critical educational and health services, as well as to develop their

Bangka Belitung

North Sulawesi

North Maluku

West Papua

Central Sulawesi

Central Kalimantan

West Sulawesi

South Sumatera

Lampung

Jakarta Special District

Papua

South Kalimantan Central Java

South Sulawesi

Banten West Java

Maluku Southeast Sulawesi

Bali Yogyakarta Special District

East Java West Nusa Tenggara

East Nusa Tenggara

own solutions to address these constraints, appropriate to their specific situations. If community interventions result in improved health and educational outcomes in terms of the defined indicators, the sub-district is rewarded through increased budget allocations in the following year. A series of impact evaluation of the PNPM Generasi program conducted between 2007 and 2010 demonstrated that the program has had a statistically-significant positive impact especially on indicators such as the frequency with which young children took part in weight checks, a vital process in the detection and management of malnutrition. The project also had the greatest impact in areas with low baseline health and education indicators, such as East Nusa Tenggara (NTT ) province, a province in which health and education problems are often regarded as particularly intractable.

30 | 2015 PSF PROGRESS REPORT

Over the years, some aspects of the program design have been modified to reflect lessons learned through the implementation of the program and the evolving priorities of the Government. In particular, in the area of health, the Government is placing an increased emphasis on improving maternal and child nutrition as a means to reduce the rate of incidence of low birth weight and the prevalence of stunting amongst children under the age of two. PNPM Generasi’s demand-side approach is now accompanied by complementary supply-side activities aimed at improving the quality and availability of maternal health and nutrition services and implemented by the Ministry of Health (MOH) and district governments. This was accompanied by substantial design changes including the revision of target indicators.

PROGRESS IN 2015 Despite challenges in 2015, PNPM Generasi made satisfactory progress towards the achievement of its development objective.

Changes in Implementation arrangements The transfer of the responsibility for the implementation of the Generasi program from the Ministry of Home Affairs (MOHA) to the Ministry of Villages, Disadvantaged Areas, and Transmigration (MOV ) resulted in significant disruptions to the program in the first half of 2015, with delays in finalizing facilitators’ contracts; in transacting the payment of salaries and travel resources for the Project Secretariat staff; and in enabling communities to access multi-year sub-project funds disbursed in late 2014. A re-appraisal mission was held in April during which the World Bank worked with the Government to assess MOV’s capacities to implement PNPM Generasi under the new institutional arrangements. On May 8, 2015, the World Bank and the Ministry of Finance (MOF) hence approved an amendment to the grant agreement to reflect the new implementation arrangements. By July, the Directorate of Basic Social Services (Direktorat Pelayanan Sosial Dasar, PSD) at the Directorate-General of Village Community Empowerment and Development (Direktorat Jenderal Pembangunan dan Pemberdayaan Masyarakat Desa, PPMD) under MoV made its budget effective and began making salary payments to the consultants and facilitators backdated to the beginning of the year. In September, representatives from the MoV; the Ministry of Health (MoH); the MoF; and the Indonesian State Finance and Development Surveillance Committee (Badan Pengawasan Keuangan dan Pembangunan, BPKP) and the World Bank conducted an follow-up Implementation Support Mission

to determine the impact that the aforementioned delays had on project operations, especially in terms of filling vacant facilitator positions and found that the issues related to the transition had been resolved and that the project was back in a position to achieve its targets.

Progress towards development objective Despite the implementation challenges faced in 2015, the project remains on track to achieve its development objective. The value of block grants disbursed in 2015 amount to Rp. 520 billion, or 99 percent of the budget allocated for this purpose (Rp. 526 billion). By mid-2015, the level of involvement of women stood at 67 percent and of the poorest members of communities at 51 percent. Due to the implementation of the long-term Generasi Impact Evaluation (IE) surveys in 2016, it was decided not to deliver the Performance Monitoring Survey in 2015, as the IE surveys will provide robust data on KPI achievement. However, the data from these surveys will not be available until late 2016. As such, government will rely on data from the project MIS and implementation support missions to assess implementation progress, identify challenges, and make corrective actions. Implementation delays in 2015 have delayed the process for uploading data on village expenditures to the web-based MIS. At the time of reporting the number of project beneficiaries in the 235 villages for which data was available and had been verified was 588,713. The project covers a total of 5,700 villages, with a total number of targeted beneficiaries of 4.9 million. Based on the data from these villages, 79.41 percent of the value of block grants provided through the project were utilized for health related purposes, while 20.47 percent were utilized for education (Figure 1).

Education In 2014, the PSF worked with the Directorate General of Community and Village Empowerment (Pemberdayan Masyarakat Desa, PMD) to pilot interventions to incentivize participation in Early Childhood Education and Development (ECED) services in three districts. An impact evaluation2 of MoEC’s ECED project showed impacts on early achievement gaps as measured by an array of child development outcomes and enrollment, providing clear evidence that in project villages, the achievement gap between richer and poorer children decreased on many dimensions. By contrast, in non-project villages, this gap either increased or stayed constant. Thus, 2 The Impact of Early Childhood Education on Early Achievement Gaps: Evidence from the Indonesia Early Childhood Education and Development (ECED) Project (Haeil Jung, Amer Hasan)

PNPM Generasi | 31

Figure 1. Block grant expenditures on Education FY 2015

8.36%

Community awarness raising on education

9.07%

Financial incentives and transport for education workers

36.28%

Financial assistance for poor students (scholarships, transport)

2.00%

Extracurricular

0.21%

Infrastructure (build and rehabilitation)

2.78%

Facilities and equipment for services

Figure 2. Block grant expenditures on Health FY 2015

5.83%

Facilities and equipment

0.11%

Medicines

9.25%

Financial assistance and transportation for pregnant, children to use services

7.00%

1.86%

Transportation (midwife, doctor, cadre posyandu) to assist use services

Infrastructure (build and rehabilitated)

43.17%

41.30%

0.52%

Financial to rent house (formaternity/ delivery)

Preparatory activities of the ECED frontline pilot program were implemented in the period from July to December 2015, including the assessment of district-level ECED policies and programs (regulations, staffing, funding, activities, involvement of CSOs and private sector, etc.) to be used as baseline data; initial discussions with district-level stakeholders to provide them with information regarding their expected roles and responsibilities; an initial assessment of synergies with existing PNPM Generasi programs at the district level; preparation of the project implementation manual; and socialization and groundwork to ensure the integration of the pilot with the overall PNPM Generasi program cycle. Implementation of the project will commence at the beginning of 2016, with the pilot scheduled to run until December 2017.

Financial incentives for health workers

5.75%

Items for poor students (books, uniforms, etc)

there was sufficient evidence to justify the expansion of ECED activities in PNPM Generasi areas, with the PSF Joint Management Committee (JMC) granting formal approval for the implementation of an ECED frontline project in April 2015, with approved funding to a value of US$11.6 million (US$5.4 million from the PSF, and US$5.6 million from the Ministry of Education and Culture (MoEC). This project is intended to strengthen the system for frontline delivery of high quality, sustainable ECED services in poor, rural communities, and will be implemented in 25 of 66 poor, rural districts participating in the Generasi program, including districts in Gorontalo, West Java, East Java, West Kalimantan, Central Kalimantan, West Nusa Tenggara, East Nusa Tenggara, West Sulawesi, North Sulawesi and South Sumatra.

14.29%

Supplementary feeding (malnutrition, school feeding, etc)

12.22%

Counseling and training

Woman pregnant class and parenting class

In 2015, according to data derived from the MIS (with 235 participating villages reporting), three classrooms were built or upgraded through the project; 730 students received financial support (scholarships, uniforms, transportation subsidies); 333 received nutrition support, while 90 contract teachers and teaching assistants received financial support.

Health To support the Government’s community-based health and nutrition program, the PSF assisted in socializing and facilitating the roll-out of complementary supply-side activities implemented by the Ministry of Health (MoH) with Millennium Challenge Account – Indonesia(MCA-I) support, with particular emphasis on the provision of training related to Infant and Young Child Feeding (IYCF). In 2015, the training of trainers and on-the-job training for master trainers was completed. The provision of training on matters related to IYCF to puskesmas staff, village midwives, and posyandu cadres is ongoing and is expected to be completed by the first quarter of 2016 in six provinces (South Sumatra, West Kalimantan, Central Kalimantan, West Java, East Java and North Sulawesi) and by the second quarter of 2016 in the other five provinces ( West Sulawesi, Gorontalo, Maluku, West Nusa Tenggara and East Nusa Tenggara). MCA-I is planning to establish an IYCF Resource Center in 2016, which will involve setting up an online knowledge platform that contains all relevant learning materials related to IYCF and training modules, with regular quarterly meetings involving national IYCF facilitators and relevant stakeholders to discuss best practices, challenges, and updates on IYCF issues.

32 | 2015 PSF PROGRESS REPORT

Mothers and health kaders in Posyandu Cihampelas SubDistrict West Java preparing the healthy food for the children

In 2015, according to data derived from the MIS (with 235 participating villages reporting), 3,512 cases of underweight children were addressed through the program; 401 cases of mother KEK were addressed through the provision of supplementary feeding; 21 health were facilities built or upgraded; and 3,234 health volunteers received financial support.

Research and Evaluations In 2015, the PSF secured approval for the final phase of a long-term Impact Evaluation to determine the effectiveness of the incentivized community block grant approach to improving health and nutritional outcomes, which will be conducted throughout 2016 and delivered in 2017. It also delivered the 2014 round of the Performance Monitoring Surveys (PMS), which

included a qualitative component, and conducted an institutional assessment of posyandu. Two Reality Check Approach studies commissioned were initiated by the DFAT Knowledge Sector Initiative and will be delivered in Q1 2016. These studies aim to understand: (a) nutrition and hygiene information and behaviors from the perspective of the rural poor, and (b) service delivery challenges as experienced by frontline health workers.

FUTURE PLANS In 2016 and beyond, the PSF will focus on supporting the implementation of the PNPM Generasi Transition Strategy, which aims to: (i) integrate Generasi’s facilitation structure within the single, comprehensive facilitation structure mandated by the Village Law; (ii) phase out the provision

PNPM Generasi | 33

of specific block grants through the program by 2018, with these grants to be replaced by general village-level grants; and (iii) assist village communities to diagnose and address issues affecting the delivery of basic services, using village government resources. While most districts will continue to receive block grants in 2016, the phasing out of the grants will be tested in four districts in four provinces, as part of an exit strategy preparation pilot. In addition, the project will focus on building the capacities of village-level facilitators in the areas of networking, coordination and advocacy; building the capacities of facilitators and village-level institutions to implement planning processes; integrating Generasi activities into Village Plans; building the capacities of local governments to manage and engage with village-level institutions and facilitators; building the capacities of village-level institutions, community groups and other stakeholders to engage with the health and educational sectors; and building the capacities of community and village institutions such as posyandu. The PSF will also focus on delivering an evaluation of the long-term impact of PNPM Generasi, with the primary purpose of this evaluation being to determine whether the program is improving health and education outcomes. In addition, it will serve as an important input to align village investments with investments made by other levels of government to address health and education challenges, as well as to guide the development of Bappenas’ frontline service delivery program and the implementation of the Scaling Up Nutrition (SUN) movement in Indonesia. From the beginning of 2016, the ECED Pilot program will be implemented in 25 locations. In 2016, the Generasi project will provide funding to support the cost of training teachers, with the Ministry of Education providing master trainers in each selected location. The pilot, which will run until 2017, is intended to encourage village governments to allocate resources from Village Funds (Dana Desa) to support the provision of ECED.

LESSONS LEARNED Integration of PNPM Generasi with village-level processes. An important lesson learned from the implementation of PNPM Generasi is that village-level planning and facilitation processes need to be strengthened in order to ensure the prioritization of health and education issues, as well as to ensure the effective use of village funds for the delivery of basic health and education services. To date, PNPM

Generasi’s planning processes have not been in sync with village planning processes, due to the fact that the PNPM Generasi planning process takes place in July to correspond with the school enrollment process, which takes place in July-August, whereas village development planning processes take place in February annually. An opportunity to achieve a higher level of integration between PNPM Generasi planning processes with village planning processes now exists through the establishment of linkages between the Annual Village Development Action Plan (Rencana Kerja Pembangunan Desa, RKPDes) and the Annual Village Budget (Anggaran Pendapatan Belanja Desa, APBDes) development processes in the second half of the year. Achieving these linkages is part of the PNPM Generasi Transition Strategy. The need for informational resources and PNPM Generasi Facilitators support. Another important lesson learned is that community/village development and planning processes are more likely to be successful if efforts to strengthen community capacities are supported with the provision of sufficient resources and if facilitators are well-trained in the relevant issues. At present, both village- and district-level officials lack information related to the implementation of the Village Law, including on matters related to the mechanisms for its implementation and the use of the Dana Desa ( Village Funds sourced from the National Budget). Hence, there is a tendency to opt for expenditures on infrastructure projects, which are considered “safe”, rather than on much-needed capacity-building in the areas of education and health. PNPM Generasi facilitators therefore need a better level of knowledge on matters related to the Village Law, including on their roles in cooperation with the government-appointed district-level experts (tenaga ahli), sub-district level supporting facilitators (pendamping desa), and village facilitators (pendamping lokal desa), who provide support to two to three villages each.

34 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS

Indicator

Baseline (2012)

Cumulative Target (2017)

Cumulative Target

2013

2014

2015

2016

Cumulative Achievements

VAR

Target for 2015

Achieved in 20151

VAR

Remarks

PDO#1: Improved access to and utilization of health services in the targeted areas % of pregnant women receiving four prenatal care visits

70

>80

70

75

75

80

68

-12

>75

n/a

n/a

Source: 2015: Generasi long-term IE surveys

% of deliveries assisted by trained professionals

75

>85

75

80

80

85

89

+4

>80

n/a

n/a

Source: 2015: Generasi long-term IE surveys

% of children under 75 three weighed monthly

>85

75

80

80

85

81

-5

>80

n/a

n/a

Source: 2015: Generasi long-term IE surveys

% of pregnant women participating in pregnancy and nutrition class monthly*

0

>60

0

50

55

60

17.2

-42.8

55

n/a

n/a

The shortfall was due to the implementation delays in the supply side activities by the MoH.

% of male caregivers participating in pregnancy and nutrition class monthly

0

40

0

10

20

30

1.4

-38.6

20

n/a

n/a

Source: 2015: Generasi long-term IE surveys

% of parents 0-2 year olds participating in children parenting

0

>60

0

50

55

60

55

-5

>55

n/a

n/a

Source: 2015: Generasi long-term IE surveys

n/a

n/a

Source: 2015: Generasi long-term IE surveys

PDO#2: Improved access to and utilization of education services in the targeted areas Junior secondary enrollment rate

65

>85

65

70

70

85

93

+8

>70

PDO#3: % community members involved in planning and decision-making meetings Women

65

>75

70

70

75

75

69

-8

75

69

-6

Source: MIS data

Poorest community 60 members

>60

60

60

60

60

55

-9

>60

47

-13

Source: MIS data

PDO#4: Total number of beneficiaries 499 kecamatan (old 5.4 and new locations) million

4.9 million**

5.4

4.9

4.9

4.9

4,977,979 -1.7 million

4.9 588,713 million

-4.3 million

Source: MIS data— 235 villages reporting. To be updated in Q2 2016.

130 kecamatan (new location)

0

1.3 million

0

1.3

1.3

1.3

340,021

-1 million

1.3 n/a million

n/a

Source: MIS data— 2015 figures to be updated in Q2 2016

% of which female

50

55

55

55

55

55

57

+2

55

n/a

n/a

Source: MIS data—2015 gender disaggregation to be updated in Q2 2016

Component 1: Generasi Kecamatan Grants IOI (Intermedi85 ate Outcome Indicator)#1: % of sub-districts with 100% disbursement rate at the end of program cycle

>90

85

85

90

90

99.6

+9.4

90

99

-82

Source: MIS data extracted in early September. The updated data was disrupted due to MIS system shut down.

IOI#2: % of previous 25 non-users as beneficiaries of sub-projects

>50

35

40

50

50

46

-4

50

46

-4

Source: MIS data

IOI#3: % of sub-districts in which service providers attended MAD

80

60

60

70

80

99.4

+19.4

70

8

-62

Source: MIS data

60

PNPM Generasi | 35

KEY PERFORMANCE INDICATORS

Indicator

Baseline (2012)

Cumulative Target (2017)

Cumulative Target

2013

2014

2015

2016

Cumulative Achievements

VAR

Target for 2015

Achieved in 20151

VAR

Remarks

Component 2: Facilitation Support IOI#4: % of district 45 government which conducted supervision to communities as planned

50

50

50

50

50

n/a

n/a

50

n/a

n/a

Data on supervision by district governments are not yet available

IOI#5: % sub-districts conducted planning and coordination workshop with district-level health and education office to discuss Generasi activities

40

80

70

70

80

80

99.4

+19.4

80

99

-72

Source: MIS data

IOI#6: % of district-level MIS data completed (verified, entered and submitted)

80

85

80

80

85

85

77

-8

85

17

-68

Source: MIS data

>70

60

65

65

70

44

-26

>65

n/a

n/a

Source: MIS data

IOI#7: % of sub-dis- 60 tricts in which 50% of villages conducted cross-village audits as planned

Component 3: Implementation Support and Technical Assistance IOI#8: % of planned facilitators at all levels were recruited and trained according to the agreed training plan

80

90

80

90

90

90

97

+7

90

96

+6

Source: MoV data project training refresher and pre-service 2015

IOI#9: % of sub-districts audited each year and for which the results are published.

20

20

20

20

20

20

28

+8

20

n/a

n/a

Source: Audit report due in July 2016.

* Data on the achievement of PDO indicators in 2015 will be obtained from the long-term impact evaluation surveys scheduled for delivery in Q3 CY2016. *8 This new target reflects a modification of the end of year target of project beneficiaries, from 6.7 to 4.9 million, and is approved in the Grant Agreement addendum. The revised estimate uses actual population data from the 2010 census figures, which reflects the relatively low population densities of the three “expansion” provinces—South Sumatra, West Kalimantan and Central Kalimantan.

36 | 2015 PSF PROGRESS REPORT

WINDOW ONE

PNPM URBAN IN ACEH

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Active

Evi Hermirasari (ehermirasari@ worldbank.org) George Soraya (gsoraya@ worldbank.org)

The Directorate General of Human Settlements (DGHS), The Ministry of Public Works and Housing

Start Date to Closing Date December 28, 2012 to December 15, 2016

PROJECT RATIONALE AND OVERVIEW PNPM Urban is a core component of PNPM Mandiri, which prior to the implementation of the Village Law served as the Indonesian Government’s flagship poverty alleviation and community empowerment program. PNPM Urban supports the Government’s efforts to ensure that the urban poor benefit from improved local governance and living conditions. PNPM Urban now covers 10,924 kelurahan (urban wards), involving around 26.7 million beneficiaries. In 2012, the PSF Joint Management Committee (JMC) approved a joint proposal by the Government and the United States Agency for International Development (USAID) for a US$ 23.5 million grant to support the implementation of PNPM Urban in the province of Aceh, with this grand involving four components: 1 Capacity Building for Communities and Local Governments: This component supports the provision of training and workshops, and facilitation for community boards of trustees (BKMs), community groups and Revolving Loan Funds (RLFs) unit staff; 2 Kelurahan Grants (to a total value in excess of US$ 14 million): This component is utilized to co-finance sub-projects identified through community development plans, including pilot interventions to mainstream the participation of women in community projects and decision-making processes (SELARAS); spatial development programs for the development of neighborhood infrastructure targeting the poorest of the poor (Neighborhood Development Program); and interventions to strengthen the livelihoods of poor communities (Sustainable Urban Livelihoods Program);

Geographic Coverage

Approved Budget

Aceh province (12 cities/ districts)

US$25,358,557

3 Implementation Support and Technical Assistance: This component supports activities to build the capacities of the staff of the Project Management Units (PMUs) and local governments and their agencies. It also facilitates monitoring and evaluation activities; and 4 Contingency for Disaster Response: This component supports preparedness and rapid response measures to address disasters, emergencies and/or catastrophic events, as needed, at the urban ward level, through sub-projects and/or using project implementation agreements.

The closing date for PNPM Urban in Aceh is December 31, 2016. A series of studies, both quantitative and qualitative, will be conducted to evaluate the implementation of the project in Aceh, with activities related to these studies commencing in the first semester of 2016.

PROGRESS IN 2015 The PNPM Urban Core Program The PNPM Urban Core Program in Aceh made good progress towards the achievement of its development objective throughout the year. By November 2015, all regular block grants had been fully disbursed and utilized by urban communities. In 2015, 438,794 people benefited from the PNPM Urban Program in Aceh, of whom 53.7 percent were female. Although the original project document did not stipulate targets for certain KPIs in 2015, consultants and facilitators still regularly reported progress through the management information system, except for

PNPM Urban in Aceh | 37

data related to local governments’ cost-sharing (which is no longer required in 2015). On December 31, 2016, the PNPM Urban Program in Aceh will officially close, although the existing structure will be used to support the National Slum Upgrading Program (NSUP) 2015-2019.

The Neighborhood Development Pilot Program The pilot Neighborhood Development (ND) program is an advanced intervention aiming to improve living conditions and livelihoods for communities in the poorest areas/slums selected from the PNPM Urban locations. In addition to the facilitators, urban planners are hired by communities (using the block grants provided to them) to provide sound urban planning and spatial analysis. Community self-surveys are conducted to identify infrastructure gaps, community problems and the location of poor households, after which Community Settlement Plans are developed with the cooperation of all stakeholders. The ND program has been implemented in 15 gampong (villages) in five cities in Aceh. Each gampong received a grant of Rp 1 billion (equivalent to approximately US$ 71,500) to construct priority infrastructure. By December 31, 2015, all grants had been disbursed and utilized for the construction or rehabilitation of 3,023 m of tertiary roads; 1,625 to m of drainage; 368 sanitation facilities; 151 housing rehabilitation units; 11 economic facilities; 8 educational facilities; 39 water supply facilities; 2 sanitation facilities; and 26 park/open space/greening projects.

SELARAS (gender mainstreaming program in Aceh) The SELARAS program in Aceh covers 426 gampong in 12 districts/cities across the province. In 2013-2014, the program focused on strengthening the gender-responsive approach to community planning within the core PNPM Urban program. During this period, each participating village received US$ 15,000 per year to finance the operational costs of BKMs, community training, and infrastructure and social investments. Funds to a value of approximately US$ 9 million have been disbursed since the start of the SELARAS program in 2012, with these funds utilized for the construction or rehabilitation of about 162,000 m of tertiary roads; 82,000 m of drainage networks; 2,700 m of sewerage channels; 1,000 m of water supply connections; and 1,000 sanitation facilities units, and for the rehabilitation of 500 houses. A small portion of the grants was also used for construction of public health, education and community market facilities. As detailed in the KPI table below, almost all KPI targets have been

achieved, except for the target related to the indicator for the performance of Revolving Loan Funds (RLFs), which have been problematic throughout all areas in which they have been implemented across Indonesia. In October 2015, a revised set of guidelines for SELARAS were adapted to meet a requirement of the Village Law that villages incorporate all project-based planning documents into a singular Mid-term Village Development Plan (Rencana Pembangunan Jangka Menengah, RPJM Desa), with these guidelines socialized amongst local governments, consultants, facilitators and communities. In line with the upcoming NSUP, the SELARAS program has incorporated community settlement planning into village planning processes, including BKMs (Community Boards of Trustees) in village planning teams. The project provided support for local governments to conduct study visits and held collaborative workshops on the integration of issues related to slums into planning processes. A series of provincial and national level workshops were held to disseminate information to and generate commitment amongst a range of stakeholders involved in the integration of slum issues into RPJM Desa for gampong. By December 31, 2015, most activities related to advocacy for local governments and village leaders and staff, socialization and training had been completed or were near completion. A similar approach to that implemented by SELARAS will be applied to achieve the integration of issues related to the management of slums into RPJM Desa for gender mainstreaming. Amongst other means, this will involve holding women-only meetings, in addition to mixed gender community meetings, to ensure women have a safe space to air their grievances; the promotion of women as committee members in planning teams and other community groups; and the disaggregation of data on the basis of gender.

Sustainable Urban Livelihoods Pilot Program The objective of the Sustainable Urban Livelihoods Program pilot program is to economically empower the urban poor in Aceh. The program endeavors to achieve this through institutional building and group capacity development; through the provision of financial management skills training; and through the identification of areas for the provision of further technical assistance related to entrepreneurship and social welfare. Out of the 56 pilot kelurahan in Indonesia, four are in Aceh (in the cities of Lhokseumawe and Banda Aceh). Community members are organized into groups (KSMs), through which the five key principles of livelihoods (regular savings, regular meetings, regular bookkeeping, regular

38 | 2015 PSF PROGRESS REPORT

lending, and repayments) are socialized, with volunteers recruited to facilitate the group. The implementation of this program in Aceh has not proceeded as rapidly as in other cities in Indonesia due to a delay in the disbursement of kelurahan grants and to the high turnover of facilitators. However, despite these obstacles, targets in terms of the defined indicators had all been achieved by the end of December 2015. A monitoring study implemented by SMERU in October 2015 reported that KSM members benefited from pilots by gaining an increased understanding of matters related to household financial management (savings and credit); by improved access to microloans; and by improved capacities in the areas of the management of group dynamics. However, the pilot was found to have at least partially failed to meet the expectations of group members, most of whom (87.5%) expected to receive vocational training, while most of the group activities focus on strengthening organizational capacities and facilitating access to microloans. By the end of 2015, the sustainable livelihoods mechanisms had been applied to 142 community groups in 56 pilot kelurahan in 14 cities in Indonesia.

FUTURE PLANS In the context of the implementation of the Village Law and NSUP, the SELARAS program in Aceh will continue to facilitate the inclusion of BKMs into village planning teams and the incorporation of settlement planning into mid-term village development planning. In line with city-level slum alleviation plans, the overall aim of activities in 2016 is to facilitate the integration of Community Settlement Plans developed under ND/PNPM Urban into village development plans. Specifically, the following activities are planned for 2016: zz The finalization of slum profiling activities in 12 cities in Aceh. The slum profiling process measures the infrastructure/services gap according to seven indicators, these being building regularity, water, sanitation, roads, drainage, solid waste, and fire safety. zz The establishment of technical working groups to address city-level settlement/slum issues, with the establishment of these groups intended to facilitate the inclusion of BKMs into village planning teams. zz A review of the community plans developed under PNPM Urban/ND/SELARAS to ensure that they cover settlement issues mandated by the targets established by NSUP. zz The provision of facilitation to BKMs to ensure their engagement in village planning and budgeting processes throughout the year.

zz

The provision of vocational training under the Livelihoods program, subject to the results of discussions with the Ministry of Public Works and Housing and Bappenas.

LESSONS LEARNED Through the implementation of this project, it has been demonstrated that the full involvement of local governments is essential to ensure programs move forward effectively. Local governments have not only provided funds under cost sharing arrangements for activities at the community level, they have also provided technical assistance through city-level technical teams; conducted public consultations to socialize the integration of top-down and bottom-up planning processes under RPJM Desa; conducted regular monitoring, and engaged in a number of other supportive activities. In particular, a number of local governments have developed and enforced regulations to facilitate the inclusion of BKMs into village planning teams in some cities. Collaboration with business development centers: A monitoring report on the Livelihoods program conducted by SMERU Research Institute notes a lack of access to consumer markets by a number of intended beneficiaries, and the lack of capacities among the recruited volunteers to train group members on matters related to business development. These issues may be resolved through collaborative arrangements with business development centers. Such arrangements will be established to provide vocational and business development training in the future.

PNPM Urban in Aceh | 39

KEY PERFORMANCE INDICATORS Targets (Cumulative)

Result Indicators

Unit of Measure

Baseline

Total Target

2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015*

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: The urban poor in participating urban wards benefit from improved local governance and living conditions that poor benefit from improved socio-economic and local governance conditions. Infrastructure built is at % of par- least 20% less expenticipating sive than that built by kelurahan non-community based approaches

>80%

n/a

80%

80%

80%

96%

96%

+16%

Min 90% of complaints are resolved

>90%

n/a

>90%

>90%

>90%

99%

99%

+9%

% resolved complaints

95%

Project beneficiaries

People

54,400

32,000

n/a

-

-

32,000

438,794

740,226

-

Of which 40% are female (beneficiaries)

People

0%

>40%

n/a

>40%

>40%

>40%

53.7%

52.7%

+12.7%

Intermediate Results (Component 1): Capacity Building for Communities and local Governments Participation rate of the poorest and vulnerable community members in planning and decision making meetings

% of Participants

54% (PNPM Urban III)

> 40%

n/a

>40%

>40%

>40%

69.2%

65.6%

+25.6%

Participation rate of women in planning and decision making meetings

% of Participants

47% (PNPM Urban III)

> 40%

n/a

>40%

>40%

>40%

51.6%

48.6%

+8.6%

Percentage of the adult population voting in BKM elections at the neighborhood level

% of adult

31% (PNPM Urban III)

> 30%

n/a

> 30%

> 30%

> 30%

34%

32%

+2%

Percentage of local governments provide required cost-sharing

% of participating LGs

75% (PNPM Urban AF & III)

> 80%

n/a

> 80%

> 80%

> 80%

-

100%

+20%

Component 2: Communities receive improved access to infrastructure based on Community Development Plans Percentage of infrastructure works evaluated as of good quality

% Infrastructure Activities

0%

> 70%

n/a

> 70%

> 70%

> 70%

99.8%

99.8%

29.8%

Percentage of urban wards with revolving loan funds (RLFs) having a portfolio at risk (PAR) ratio > 90% days of < 10%

% of participating Kelurahan

34%

> 50%

n/a

> 50%

> 50%

> 50%

10%

10%

-40%

Component 3: Consultants provide technical assistance and implementation support to the project Percentage of oversight consultants (OCs) providing timely & accurate data through MIS

80% (PNPM Urban III)

> 90%

> 90%

n/a

> 90%

> 90%

> 90%

99%

99.3%

+9.3%

Percentage of BKMs 90% with completed annual (PNPM financial audits Urban Additional Financing)

> 80%

> 80%

n/a

> 80%

> 80%

> 80%

100%

98.6%

+18.6%

* Source of data: MIS as of November 30, 2015

The under-performance of the RLFs is a national problem related to a lack of specialized facilitation, socialization of communities and insufficient local government support. There are several efforts underway to resolve these problems.

WINDOW TWO IMPLEMENTATION AND COORDINATION SUPPORT

42 | 2015 PSF PROGRESS REPORT

WINDOW TWO

PNPM RURAL IMPLEMENTATION SUPPORT

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Active

Sonya Woo (swoo1@ worldbank.org) Sentot S. Satria (ssatria@worldbank. org)

The World Bank

Start Date to Closing Date May 14, 2008 to December 31, 2016

PROJECT RATIONALE AND OVERVIEW Since PNPM Rural was first launched in 2008, the program has been scaled up to cover approximately 5,300 sub-districts, with this number increasing from 2,600 at the program’s inception. A number of studies and evaluations have found that this scale-up caused substantial strains on the program’s management and governance frameworks. To achieve the program’s development objective, which is for villagers to benefit from improved local governance and socio-economic conditions, it was deemed necessary to intensify the provision of support in these areas. In response to this perceived need for intensified support, the Joint Management Committee (JMC) approved the establishment of an implementation support trust fund to facilitate improvements to both PNPM Rural and PNPM Urban in May 2008. In 2009, a separate trust fund was established specifically to facilitate improvements to the supervision of PNPM Urban. In 2010, two additional projects were established to work in close cooperation to provide support for: (i) the implementation and monitoring of PNPM Rural and the two Papua-based projects, PNPM Rural/RESPEK and PNPM Agriculture; and (ii) field operations and governance and fiduciary systems. The Implementation Support project provides technical support, guidance, and supervision through field-based monitoring and through other activities to improve governance, fiduciary, and monitoring and evaluation (M&E) systems. In addition, the project team has also engaged in high-level policy dialogue with PNPM Rural’s implementing agency, the Directorate General of Community and Village Empowerment (PMD) under the Ministry of Home Affairs, and with the Steering Committee of PNPM (Pokja Pengendali). All these activities are

Geographic Coverage

Approved Budget

National: 5300 sub-districts, 403 districts, 33 provinces

US$7,796,270

intended to assist PMD to formulate recommendations, strategies and policies on the basis of evidence-based and technical analyses. The project also provides portfolio-wide implementation assistance and facilitates engagement with local-level project stakeholders, with the findings from field-level activities being aggregated to assist PMD to identify and address relevant issues and to determine opportunities for the development of pilot projects. In 2011, the Government and development partners agreed to focus on strengthening five key areas identified as critical for program management, as follows: (i) capacity building for PMD to manage the program optimally; (ii) the redesign of the Management Information System (MIS) to enable the provision of reliable and comprehensive data; (iii) the strengthening of the Complaints Handling System (CHS) to enable the better detection, monitoring and resolution of fraud and corruption cases; (iv) the reinforcement of formal and informal fiduciary controls; and (v) improvements to the system for the management of facilitators, particularly in the area of career development, training, and levels of remuneration. In October 2014 the Government established the new Ministry of Village, Disadvantaged Areas and Transmigration (MoV ). This new Ministry was assigned the mandate for executing functions related to village development and community empowerment. In February 2015, the Government determined that the responsibility for the implementation of PNPM Rural would be transferred from MoHA/PMD to MoV. Following this particular transfer in June 2015, the PSF has provided support to the new implementing agency, the Directorate General of Development and Village Community Empowerment (PPMD) under the MoV.

community meeting to decide the use of the block grant, at Way Perancang Village, Lampung

PROGRESS IN 2015 The project has made steady progress towards the achievement of its development objective. In June 2014, the Government promulgated the Village Law, which provides the legal framework for community development and programming into the future. Following the promulgation of this law, the Government began phasing out the PNPM project in 2015. After some delays, the MoV is now taking decisive action to implement activities related to the closure of PNPM and to resume previously suspended key activities under Components 1 and 2 of the project. While the objectives of the Village Law are similar to the development objectives of PNPM Rural, the new law poses significant new challenges, in terms of both scope and scale, as it involves the comprehensive institutionalization of the principles of community-driven development into government structures down to the village level. In June 2015, the Project was restructured in accordance with the Government’s previously described decision to transfer the mandate for matters related to village development and community empowerment from MoHA to MoV and to align the Project’s focus and activities with the new Village Law and associated regulations. The PNPM Rural Implementation Support project’s closing date was therefore extended from December 31, 2015 to December

31, 2016, in order to give the Government additional time to complete PNPM closure activities and to manage the transition to the new context created by the Village Law. The most significant developments during 2015 were the establishment of the Village Law National Secretariat (the function of which is to support MoV in managing the day-to-day implementation of the program); the issuance of the PNPM closure guidelines; and the re-deployment of around 10,500 facilitators formally employed under the PNPM program to support activities related to the closure of this program and to support initial Village Law planning activities. Project reports show that 98 percent of villages have handed over all infrastructure sub-projects to communities in accordance with the established guidelines. The remaining two percent of villages are spread across 28 provinces, with the rate of progress towards completion currently ranging from 77 percent to 99 percent. The MoV also implemented Grand Master Training (GMT ) and training of trainers in the period from August to September 2015, with this training intended to support the closure of PNPM Rural and preparations for the implementation of the Village Law. In addition, the PNPM Support Facility (PSF) team was engaged in a series of technical discussions to develop a new Village

44 | 2015 PSF PROGRESS REPORT

Law facilitation structure in the period from September to December 2015. The implementation support team provided guidance on the planning, design of activities, regulatory development and implementation activities. Specific activities included the review and provision of inputs for the development of terms of reference, concept notes, training modules, work plans and budgets. In addition, the PSF carried out an implementation support mission between October to November 2015. The mission’s objectives were to: (i) review the performance of the project; the progress of activities related to the closure of PNPM; and fiduciary compliance; (ii) develop a shared understanding of MoV’s key priorities under the Village Law; its institutional and implementation arrangements; and the design of its supporting facilitation structure; (iii) discuss the Project’s work plan, budget and procurement plan for 2016 to secure agreement on how the remaining World Bank loan would be used to support key implementation activities; (iv) review the evaluation of the administrative service firm contract; and (v) support a South-South learning exchange on community-driven development facilitation models involving stakeholders from the MoV, the World Bank, and government agencies from the Philippines and India. The aide memoire presented a number of important findings and recommendations related to policy and management issues, including reviving the role of the Implementation Coordination Teams ( Tim Koordinasi) to coordinate key policy issues; extending the contracts of former PNPM facilitators to December 31, 2016; recruiting additional sub-district facilitators to work on labour-intensive infrastructure activities; and enacting policy on the legalization and sustainability of the Revolving Loan Fund.

FUTURE PLANS Although good progress has been made towards the closure of PNPM Rural, a number of locations may need additional assistance to complete activities related to this closure due to limited capacities in these locations. In particular, the provinces of North Kalimantan and North Sulawesi may require additional assistance to ensure that all sub-projects are handed over in compliance with the closure guidelines. In addition, the following key issues may affect MoV’s capacity to successfully complete the closure of the PNPM program by the end of 2015: zz A third of all provinces have a facilitator vacancy rate in excess of 20 percent, with some sub-districts reporting vacancy rates as high as 40 percent. These high vacancy rates may impede the implementation of closure activities;

zz

zz

zz

zz

In several provinces, undisbursed block grants (BLM) and operational funds (Dana Operasional Kegiatan, DOK) balances remain idle in Sub-District Activity Management Unit (UPK) accounts, and outstanding Revolving Loan Funds (RLF) funds exist. While MoV has reported that all RLF balances have been validated, a policy on how sub-districts should deal with these account balances and outstanding balances has not been finalized, thereby putting funds at risk and further delaying the financial and administrative arrangements related to the closure of PNPM. There is an urgent need for Bappenas, MoV and PMK to work together to prepare a Ministerial Regulation to ensure RLF balances are prudently handed over to communities and to legitimize the legal status of the RLF; According to data obtained from 17 provinces, 2,583 fraud and corruption cases involving funds to a total value of Rp 113.9 billion remain unresolved. MoV is in the process of developing technical guidelines to facilitate the transfer of unresolved cases to Inter-Village Cooperation Boards (BKADs) after the closure of PNPM; 1,400 of 1,915 previous BPKP Audit findings amounting to Rp 60.46 billion needs to be refunded to the State Treasury; and The Project’s IRIs need to be updated and the annual report for 2015 compiled and submitted to the World Bank for verification.

On October 28, 2015, it was announced that the MoV’s total budget for FY 2016 would amount to Rp 8.7 trillion, including Rp 1.8 trillion (or approximately US$ 130 million) of IBRD loan financing. Following the closure and restructuring of the PNPM program, it was agreed that the remaining loan balance would be used to finance activities related to this closure and for new community empowerment activities implemented by the MoV under the mandate of the Village Law. It was agreed that the loan would be utilized to finance the contracting of administrative service firms and to provide technical assistance to develop new management arrangements within MoV to support Village Law community empowerment activities, including the payment of facilitator salaries; the provision of training for facilitators; the implementation of socialization activities; the provision of training for community-based institutions and civil society organizations; provincial-level coordination meetings; research and CSO engagement; the development of MIS for facilitation monitoring and reporting; and, possibly, for the payment of salaries to village facilitators, subject to agreement being reached on the terms and conditions of their engagement.

PNPM Rural Implementation Support | 45

The Implementation Support Trust Fund will be used to co-finance activities in each of these areas. In addition, the implementation support team will continue to engage with MoV and other government stakeholders in the areas of program management; communication and learning; facilitation and community training; and analytics. These activities will include the following: zz In addition to refresher training for former PNPM facilitators and planned pre-service training for new recruits, the implementation support team will assist MoV to identify a funding mechanism to support a socialization and community-learning campaign under the Village Law. It has been agreed that terms of reference will be developed by the implementation support team by the end of January 2016, in consultation with MoV. zz In the area of analytics, the implementation support team will continue to support the MoV in the preparation of their Quarterly Progress Reports, as key Intermediary Results Indicators (IRIs) are still outstanding. The impact evaluation of PNPM Rural 2012-2015 is ongoing and will be finalized by the end of March 2016. The evaluation covers the project’s technical performance, economic benefits, and beneficiary satisfaction levels with various investments financed by the project. The evaluation is being conducted in 12 districts and 24 sub-districts, covering 160 infrastructure sub-projects financed by the project and 120 RLF beneficiaries. zz The recruitment, training, and mobilization of facilitators has proven to be significantly more difficult than originally anticipated. The implementation support team will continue to assist the MoV to review TORs, recruitment guidelines, and standard operating procedures and to conduct technical missions to verify progress.

LESSONS LEARNED The Village Law is new and distinct from PNPM in terms of its identity, scale, regulatory requirements, partnership arrangements and potential for impact. Despite these differences, a significant body of evidence has been generated through the implementation over a period of more than 15 years of PNPM Rural and the project’s predecessor, the Kecamatan Development Project, to determine what works and what does not work in the area of community development. One key lesson learnt from the implementation of PNPM Rural is that basic improvements in infrastructure and service delivery are heavily dependent on the degree to which good governance practices and institutionalizing participatory

processes are established in the Government’s planning, budgeting and implementation procedures. Moreover, experience also shows that including civil society, marginalized groups, and communities in the local development process is key to encouraging transparency, accountability, and the appropriate targeting of investments and development outcomes. Overall, lessons such as these provide a good basis for the assessment of risk. Based on Indonesia’s experience with decentralization, by itself, the Village Law will not guarantee a high level of performance, efficiency, results, and impact unless the Government develops an enabling framework that includes simple implementing regulations; that links the use of village funds to incentives that align with national development and fiscal priorities; that develops an effective facilitation system, implementation guidelines, and a performance-based results monitoring system; and that provides capacity building at both the national and sub-national levels. There is strong evidence to indicate that basic infrastructure is a prerequisite for achieving poverty reduction and good service delivery. The Village Law will provide funds amounting to a value of Rp 306.7 trillion (US$ 21 billion) in the period from 2015 to 2019 for the development of such infrastructure. To ensure the achievement of poverty reduction and good service delivery, it is essential to build the capital stock of infrastructure in disadvantaged areas considering that most of villages in Indonesia do not have access to basic infrastructure in relation to health, education, and access to markets. For example, the average distance from a house to primary school/village health center is about 7-8 kilometers, which attenuates access to important social and economic opportunities. Villages need training and facilitation support to access the sectoral inputs and expertise needed for village frontline service delivery. One way to accomplish this is by strengthening village cadres (Kader Pemberdayaan Masyarakat Desa, KPMD) to assist in developing and implementing good governance systems; for example, by ensuring village discussion forums and complaint-handling systems are functioning.

46 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS

Result Indicators

Unit of Measure

Targets (Cumulative) Baseline

Total Target

2012

2013

2014

2015

Delivered in 2015 (only)

2016

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To provide technical support, guidance and supervision to the overall PNPM Rural activities through field-based monitoring and support, governance, fiduciary, M&E. PPMD’s n/a (MoV )1capacity to manage the various PNPM operations under its mandate is enhanced

PNPM Operations managed by PPMD (MoV )

Establishment of a Joint secretariat at national level; MIS and CHS overhauled

Preparation for Joint secretariat; management review

Joint secretariat established

Completion of MIS and CHS overhaul

-Secretariat for PPMD is established.

-The closure of PNPM managed properly and final report submitted

Datacenter for Management Information System (MIS) is available. New Complaint Handling System (CHS) works effectively Training of Trainers ( TOT ) workshop is completed. Secretariat is established

TOR & SOP for Secretariat is finalized, the secretariat is established. MIS redesign completed but not yet utilized CHS redesign completed.

Field supervision, system reviews & studies help shape the policy dialogue on PNPM Rural and PNPM Mandiri

n/a

Field findings translate into strategic reform agenda for PNPM Rural; PSF inputs incorporated into the PNPM Roadmap

PSF inputs incorporated in the PNPM Roadmap; Studies inform PNPM 20122014 design improvements

Implementation support to the PNPM implementation provided, including action plans and pilots

Ongoing

Ongoing

Ongoing

PSF involves actively in providing inputs to five government regulations in order to support the implementation of the Village Law. In addition, facilitator structure and budget estimation needed for VL implementation has also been provided.

PSF continuing to provide support to Directorate of Village Community Empowerment (PMD- MoHA) and new implementing agency, Directorate of Development and Village Community Empowerment (PPMDMoV )

n/a

Delays in utilization of new MIS

On track

The handover of new MIS from MoHA to MoV has not been done properly, therefore it has not be utilized yet.

PSF will continue to provide policy and operational advice to support the transition period to implement the Village Law, as well as the formulation of PNPM Roadmap action plans and the facilitation strategy for Village Law implementation.

Component 1: Increased risk-based implementation support to the PNPM Rural, to assess the effectiveness of existing management systems and assist the strengthening of these systems as needed # of risk-based supervision p.a.

# of missions

4 p.a. (2011)

6 p.a

Follow-up on field findings with PMD

n/a

n/a

# & type of thematic studies & performance conducted2

# of studies

n/a

6

12

18

20

24

4

24

On track

2 Aide Memoire delivered from implementation support missions held in February and October/ November 2015, 2 thematic missions held in January/ February, as well as August/September 2015.

Quarterly Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Field findings on key aspects of implementation regularly analyzed and discussed with PMD and PNPM stakeholders

Quarterly follow-up with PMD

On target

In addition to regular meetings, findings from the field are shared. A facilitation strategy to support the village Law is still under discussion

n/a (as needed)

6

9

-

-

1 studies

9 studies completed; 1 study on going

on track

An evaluation on PNPM beneficiaries satisfactions, economic impacts and quality of infrastructures are being conducted starting in October 2015. The evaluation report will be ready in the first quarter of 2016.

4

PNPM Rural Implementation Support | 47

KEY PERFORMANCE INDICATORS Targets (Cumulative)

Unit of Measure

Baseline

Practical tools developed to improve contract management & oversight

-

n/a

Impact of a more comprehensive approach to capacity building & facilitation is demonstrated

-

n/a

Result Indicators

Total Target

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

2012

2013

New contract monitoring tools commonly used

PMD/ PPMD staff trained and new tools used to improve contract management

PMD/ PPMD staff trained and new tools used to improve contract management

n/a

n/a

n/a

n/a

Tools finalized and shared with PMD

On track

Done

Capacity building and facilitation acknowledged in village law

EEE (Enhanced Empowerment Experiment) proposal finalized

EEE implemented

PMD informs the implementation of the Village Law

PNPM fully integrate into the Village Law

Pre-service training for all village facilitators are conducted. Refresher training for PNPM Closure and implementation of Village Law is conducted

Refresher Trainings for facilitator on PNPM Closure have been done in district and sub-district levels.

Policies and operational advices on the Village Law is continued.

On track

EEE implementation was discontinued since the government announced the Village Law.

0 missions p.a

7 missions p.a as of September 2014

-3 p.a

Intensive dialogue and thematic workshops on field facilitators/ consultants’ remuneration and the supporting regulations for the implementation of the Village Law

Intensive On target dialogues with PPMD and government stakeholders in terms of providing inputs and recommendations to the government policies to support PNPM/the Village Law have been intensively done

Component 2: Increased stakeholders involvement in project preparation and implementation support. Mission p.a.

6 missions p.a

9 missions p.a

-

Monthly Monthly coordination meetings (+ad-hoc workshops to discuss specific issues)

Monthly

Monthly

Monthly

Customized approach for remote areas, starting with Papua

Customized approach discussed, finalized and endorsed by Pokja Pengendali

continue

-

2 missions p.a.

3 missions p.a

Intensive n/a dialogue with PPMD (MoV ) and other government stakeholders on PNPM

-

Customized approach developed for remote areas (e.g. Eastern Indonesia), starting with Papua

n/a

Joint government and donor review missions

Status

3 missions p.a

Join Papua working group established

-

Monthly

No activity was executed in 2015

-

delays

PPMD (MoV ) is still focusing o then closure of PNPM and the transition to the Village Law; therefore the customized approached for remote areas is delayed.

48 | 2015 PSF PROGRESS REPORT

WINDOW TWO

PNPM COMMUNICATIONS

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Closed

Sri Kuntari (skuntari@ worldbank.org)

The World Bank

Start Date to Closing Date June 13, 2008 to November 26, 2015

PROJECT RATIONALE AND OVERVIEW Since its official launch in 2007, PNPM Mandiri has undergone a significant process of evolution and has been scaled up dramatically. This scale up has been supported by an intensive communications process through which communities, the media, government officials, academics, activists, development workers, project staff and other key stakeholders have been informed of the program’s progress and have been enabled to contribute to efforts to implement its activities. In order to assist the Government to meet the increased communications needs related to the program, the PNPM Communication Strategy was established in 2008 as a technical assistance ( TA) project. The development objective of the project was to strengthen PNPM’s overarching communications and learning platform, which supports continuous program improvements through information dissemination, capacity-building and enhanced knowledge sharing among all PNPM stakeholders. The project aimed to achieve the objective by: 1 Working closely with media organizations and national and local civil society organizations to disseminate and monitor the latest news and information on PNPM; to enhance community-based monitoring; and to facilitate community participation; 2 Building the capacity of Government institutions involved in PNPM in the area of information and communications; 3 Supporting various stakeholders to codify, organize and share their knowledge through innovative tools and approaches; and

Geographic Coverage

Approved Budget

National

US$4,350,000

4 Developing accountability mechanisms to allow communities and the public to express their aspirations and opinions; to enable increased engagement on issues that impact their lives; and to enhance their ability to hold the program’s actors accountable. Over the period of nearly eight years during which the PNPM Communications Project was implemented before it closed in May 2015, the project generated a significant body of work. The project was successful in meeting its development objective, which was to strengthen PNPM’s overarching communications and learning platform, which supports continuous program improvements through information dissemination, capacity-building and enhanced knowledge sharing among all PNPM stakeholders. During this period, the PSF Communications team provided technical support to the Government to develop an effective communications strategy. The project went far beyond its original mandate by creating an environment in which frank and open dialogue and the exchange of information and experiences between stakeholders at all levels became the norm. In addition to facilitating high-level meetings, such as the PSF Joint Management Committee (JMC) meetings and the Communications Forum under the PNPM Steering Committee (Pokja Pengandali), the project worked to create opportunities for community dialogue and sharing across communities through the establishment of a network of 149 community radio stations; to facilitate innovative uses of social media to encourage frank dialogue and flows of information related to project performance between the head of

PNPM Communications | 49

50 | 2015 PSF PROGRESS REPORT

the Steering Committee, community facilitators, and project participants at the village level; and to share lessons learned from the implementation of PNPM through knowledge sharing and learning events involving more than 80 delegations from over 30 countries. The project has produced an impressive list of high-quality publications, audio-visual presentations, media coverage and other tangible outputs, listed in the annex. However, the project’s non-tangible outcomes in terms of learning, capacity building, creating a positive public image and awareness of PNPM, and contributing to program improvements in response to the inputs and feedback collected from stakeholders will remain its most important and lasting achievement.

PROGRESS IN 2015 Throughout 2015, the project team focused on the closure of the remaining project activities; on integrating the three members of staff remained at the end of December 2015 into the PSF Secretariat; and on supporting the Government in the process of transition from PNPM to Village Law implementation. Activities listed here include those financed through the Trust Fund until its closure in May 2015, and subsequently implemented by the PSF Secretariat.

Support for the Government PNPM Communication Strategy The project provided limited support to the Coordinating Ministry of Human Development and Culture (Menko PMK); the Ministry of Villages, Disadvantaged Areas and Transmigration (MoV ); and the Ministry of Home Affairs (MoHA) in the area of communication issues related to the transition from PNPM to the Village Law implementation by providing assistance to develop materials for the socialization and implementation of the Village Law. Materials produced included videos, pamphlets and brochures, and training materials for facilitators. The project also supported engagement with the mass media through the preparation of press releases, the supply of workshop backdrops and the provision of website content. An infographic video related to the implementation of the Village Law was prepared and disseminated through the PSF website, with this video attracting more than 5,000 unique visits with viewers spending an aggregate total of 10,800 minutes viewing the video. Overall, the team engaged with more than 47 national and local mass media outlets, and 50 local online news portals. The project also supported several key events, including a launch meeting that involved 12,000 Village Law facilitators; workshops and conferences;

and a knowledge sharing event with the Anti-Corruption Committee (KPK).

Media Monitoring and Engagement The project team maintained a social media presence up until August 2015. During the period that this presence was maintained, it facilitated a total of 22,500 conversations on issues related to PNPM, with approximately 21,600 Twitter followers. The project team continued to monitor and media throughout June 2015, documenting a total of 1,617 articles on issues related to PNPM Mandiri, of which 96 percent were classified as positive or neutral in tone. The articles came from a wide range of sources covering a wide geographic distribution, with these articles derived from sources including nine national newspapers, four national magazines, 34 local printed magazines and more than 50 local online news portals. The most frequently discussed issues related to the continuation of PNPM Mandiri and PNPM Rural and to the position of PNPM facilitators in the context of the transition to the implementation of the Village Law.

South-South Knowledge Exchanges In 2015, the PSF Secretariat became responsible for the management of knowledge exchanges in order to ensure the continuity of support for the exchange of knowledge between Government agencies, communities and international delegations. Throughout the year, two South-South Knowledge Exchanges were conducted to share knowledge on issues related to community empowerment and its institutionalization in the context of the implementation of the Village Law, with these exchanges involving visiting delegations from Myanmar and Timor Leste. The team also prepared for exchanges on similar issues involving delegations from Papua New Guinea, India, Afghanistan and JICA. The team also facilitated a field mission and learning visit for the World Bank Senior Director of Gender Cross-Cutting Solutions Area (CCSA) and for the Practice Manager of East Asia and the Pacific (EAP) Social Development.

Publications Under the PSF transition strategy, in 2015, the Monitoring, Evaluation and Special Studies project became responsible for printing and publications activities, while the PSF Secretariat became responsible for the management of the PSF library. The library received 39 new titles, including 11 titles published by PSF; one video published in cooperation with the Indonesian Government; and 27 publications from external sources,

PNPM Communications | 51

including regulations to support the implementation of the Village Law and other reports and studies on the implementation of both PNPM and the Village Law. Published items have been documented and listed on websites located at www.psflibrary.org and www. pnpm-support.org. The library responded to an average of five requests for information each month from colleagues in international development agencies, government representatives, and academic/research institutions. The library also responded to request for publications and information related to events and meetings conducted or supported by the full range of projects in the PSF portfolio. As the library no longer provides a public reading area or disseminates printed publications, the websites located at www.pnpm-support.org and www. psflibrary.org are the main outlets for information related to recent PSF activities and knowledge products. Knowledge products are also disseminated digitally through a number of other platforms provided by the World Bank, including Imagebank, the World Bank external site, the Open Knowledge Repository and CDD Community of Practice.

FUTURE PLANS With the PSF Secretariat now fully responsible for communications functions, the scope of activities will be substantially scaled down and focused more on meeting the needs of PSF task teams. However, South-South Knowledge Exchange will continue to be an important mechanism for the Government and communities to share the significant body of knowledge generated through the 15 year period of implementation of PNPM Mandiri and its predecessor, the Kecamatan Development Project. The PSF Secretariat will continue to manage the library, while media monitoring activities are likely to be reviewed.

LESSONS LEARNED Over the period of implementation of the Communications Project, it has been learnt that a number of factors are significant in facilitating the achievement of successful outcomes: Building effective relationships with multiple stakeholders: Creating an environment that facilitates the free flow of information between a diverse range of stakeholders is often challenging, particularly with the need to accommodate the varying interests and needs of a range of government agencies, PSF donors and the World Bank. It takes time and resources to build effective working relationships with stakeholders,

requiring strong interpersonal skills and the investment of time and resources to engage in frequent outreach activities, to conduct formal and informal meetings, to facilitate learning events, and to produce publications. The project team worked hard to build bridges to ensure good communication between a wide range of PNPM stakeholders, especially between stakeholders from the former Coordinating Ministry for People’s Welfare, the Ministry of Communications and Informatics, MoHA and the donors through these various engagements. As a result of this approach, the Government’s sense of ownership over the program was strong. It also led to tangible outcomes such as the provision of in-kind support from the Ministry of Communications and Informatics in the form of the allocation of free broadcasting slots for PNPM since 2012. The adoption of innovative technologies as they emerge: The period during which the PNPM Communication project was implemented coincided with a time of phenomenal growth in Indonesia’s use of online social media, with Indonesia having one of the highest per capita number of users of Facebook, Twitter, and other social media in the world. While this growth could not have been predicted at the point at which the project was first conceived, the project team recognized that this growth created a means to reach a broad base of project facilitators and community members across the country through a communications network that allowed these grassroots stakeholders to communicate with each other and to pose questions and provide feedback directly to government officials and policy-makers at the highest level. These feedback mechanisms contributed to improving project management and implementation quality.

52 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS

Result Indicators

Unit of Measure

Delivered in 2015 (only)

Targets (Cumulative) Baseline

Total Target

2013

2014

2015

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To strengthen PNPM’s overarching communications, social accountability and learning platform which supports continuous program improvements through information dissemination, development of social accountability mechanism, capacity-building and enhanced knowledge sharing among all PNPM stakeholders Strengthen public understanding of and support to PNPM Mandiri

n/a

PNPM known but limited public understanding of empowerment principles & process

The public’s understanding of and support to PNPM increased through information dissemination and public diplomacy efforts

n/a

Level of familiarity and understanding of the public, key public figures and champions are increasing through public diplomacy efforts

Level of familiarity and understanding of the public, key public figures and champions are increasing through public diplomacy efforts

Provided media coverage in conventional media, community media and social media, contributing to improved public understanding and support for transition to Village Law

Provided media coverage in conventional media, community media and social media, contributing to improved public understanding and support for transition to Village Law

On track

Enhance knowledge sharing (KS) among PNPM stakeholders

n/a

n/a

KS enhanced through ongoing use of communication channels and learning events/visits

Continuous improvement

Knowledge sharing is improved through the ongoing use of social tools by PNPM actors

Knowledge sharing is improved through the ongoing use of social tools by PNPM actors

Learning events and visits continued on a reduced scale, shifting focus to Village Law transition.

Learning events and visits implemented; analytical reports produced and disseminated

On track

Enhance PNPM’s transparency and social accountability by using communication channels as community feedback tools as well as tools to educate community on governance and anti-corruption (GAC)

# of communication channels being used as feedback and education tools on GAC

Community radio in 3 provinces engaged to be the feedback and education tools on GAC

Various communication channels being used as feedback and education tools on GAC; online mechanism developed

Community radio and social media being used as feedback and education tools; online mechanism launched and improved

Community radio and social media being used as feedback mechanism; creative events being held to educate community on GAC

Community radio and social media being used as feedback mechanism; creative events being held to educate community on GAC

Community radio and social media being used as feedback and education tools; Corruption Eradication Commission (KPK) is engaged to conduct an outreach event.

Community On-track radio engaged, social media effectively used, creative events being held, Corruption Eradication Commission (KPK) is engaged as a partner on corruption prevention

Social media staff contract concluded August 2015. Remaining 3 staff now integrated into PSF Secretariat

Component 1: Public Outreach and publication production/dissemination Media organizations participating in field visits

# of media organizations/ year

23

30

30

30

30

0

44

On target

PNPM publicity published and advertised in a variety of media

# publicity* # advertisement

25 publicity 12 advertisement

35 publicity

27 publicity

30 publicity

30 publicity

39 publicity

154 publicity and 27 advertisements

On target

*Publicity (free advertisement)

Community media engaged in information dissemination & community-driven monitoring

# of community media and community radio associations (JRK) engaged in # provinces

149 community radio stations and 9 JRK in 9 provinces

150 community radio stations and 15 JRK in 15 provinces

150 community radio stations and 15 JRK in 15 provinces

150 community radio stations and 15 JRK in 15 provinces

150 community radio stations and 15 JRK in 15 provinces

149 community radio stations and 15 JRK in 15 provinces

149 community radio stations, 15 JRK in 15 provinces and national level JRK

-3 community radio stations

Three community radio stations withdrew from the program due to technical problems.

PNPM Communications | 53

KEY PERFORMANCE INDICATORS

Result Indicators

Unit of Measure

Delivered in 2015 (only)

Targets (Cumulative) Baseline

Total Target

2013

2014

2015

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Social Media engagement

# of n/a engagement monthly # of members in social media

5000 engagement/m & 10,000 members in groups, 1000 followers in profile

3000 engagement/m, 6000 members in group, 500 followers in profile

4000 engagement/m, 8000 members in group, 800 followers in profile

4000 engagement/m, 8000 members in group, 800 followers in profile

3000-5000 engagements per month, 21,600 Twitter followers, 22,500 social media discussions

3000-5000 engagements per month, 21,600 Twitter followers, 22,500 social media discussions

Over target

Social media staff contract concluded in August 2015 

Media Monitoring

# of media monitored & articles analyzed for PNPM’s oversight bodies

49 daily media 1,300 articles annually

51 conventional media & social media, 2,200 articles per year

51 2,000

51 2,200

51 2,200

47 conventional media + over 50 online media & social media; 1617 articles

47 conventional media + over 50 online media & social media; 1617 articles

-583 articles monitored

Contract for media monitoring activities concluded in June 2015

Publications/ Reports

# of titles & exemplars disseminated

25 titles 20,500 exemplars

30 titles & 5,000 exemplars per year

30 & 5,000

30 & 5,000

30 & 5,000

39 titles & 0 exemplars

159 titles & 39,700 exemplars for 4 years

+ 9 titles

Printing & publications moved to Monitoring & Evaluation team in 2015, Librarian integrated into PSF Secretariat

Component 2: Learning/knowledge sharing events/initiative Partnerships with CSOs, Academia & interest groups

# of active partnerships

4

12

10

12

12

2

14

Over target

Support for PNPM transition to Village Law.

Learning events/workshop/exhibitions

# events/ workshops/ exhibitions

3 annually

10 annually

5

7

7

6

35 in total

Over target

 Support for PNPM transition to Village Law.

Visits/study tours from foreign delegations

# of visits

4 annually

5 annually +1 GOI visits to foreign countries

5 incoming + 1 outgoing

5 incoming + 1 outgoing

5 incoming + 1 outgoing

3

36 incoming + 3 outgoing annually

Over target

Interest in integration of PNPM principles into Village Law.

Visits from high level officials of stakeholders

# of visits

n/a

n/a

More than 5

More than 5

More than 5

2

23 from 2013 to 2015

Over target

PSF website & online Library functional

# of visitors

n/a

10,000 visitors monthly

7,000

10,000

10,000

400 video visitors per month and 307 website visitors per month

707 visitors per -9303 visitors per month month

The halt in PNPM block grants and planning activities resulted in a decline in website visitors. Village Law informational video generated good interest.

54 | 2015 PSF PROGRESS REPORT

WINDOW TWO

CREATIVE COMMUNITIES II (CCII)

PROJECT RATIONALE AND OVERVIEW In 2007, the Indonesian Government launched PNPM Mandiri, building on a predecessor program, the Kecamatan Development Program (KDP). The rapid scale up of the program to achieve nationwide coverage that this transformation involved resulted in significant strains on the quality of facilitation, affecting the facilitator recruitment process; the management of facilitators’ performance; and the quality of oversight and training. In addition, a number of studies concluded that community fatigue resulting from the repeated planning cycles had created or had the potential to create a loss of enthusiasm for public participation, with a corresponding risk of diminishing the voice of the community, particularly its poorest and most marginalized members. The first phase of the Creative Communities project (CCI) was established in November 2007 as a pilot project to determine whether PNPM outcomes could be improved by providing small grants to villages in three provinces to conduct cultural activities from an open menu, with these activities intended to enhance community participation and the community empowerment process. The current phase of the project, CCII, builds on this earlier experience by awarding a grant to a civil society organization through a competitive process to develop and test the delivery of targeted cultural activities to diverse communities in an effort to strengthen the voice and participation of the poor and marginalized in village planning, with these activities consisting primarily of theater for development and participatory videos. CCII was implemented as a grant financing operation linked to PNPM Rural IV (IBRD Loan Number 80790). The development objective of the project was to improve the ability of villagers, especially poor and marginalized people, to participate actively in PNPM processes using cultural expressions in project locations.

SUMMARY INFORMATION Status

Task Team Leader(s)

Closed March 31, 2015

Natasha Hayward (nhayward@ worldbank.org)

Executing Agency(ies) Yayasan Kelola

Start Date to Closing Date April 24, 2013 to March 31, 2015 Geographic Coverage

Approved Budget

44 villages in 20 districts across five provinces

US$2,264,000

Immediately prior to the planned scale-up of pilot activities in Phase 2 of this project, the World Bank transferred responsibility for the support for a number of activities, including CCII, to a Managing Contractor (MC) funded by DFAT. The grant was restructured to enable planning for a modified proofing of the concept in the second phase to be conducted within a shortened timeframe, with the number of locations reduced from 50 to 24 and with the planned closure date of Phase 2 brought forward from November 30, 2015 to March 31, 2015.

PROGRESS IN 2015 The project made good progress towards the achievement of its development objective in terms of all three of the project’s components, these being (1) community-based cultural activities; (2) capacity building; and (3) monitoring and evaluation. 1 Community-based cultural activities: Beginning in late December 2014 and extending into March 2015, these activities were conducted in 33 villages in 17 districts in East Nusa Tenggara (NTT ), Bali, and West Java and involve the socialization of the project’s objectives; the identification of target groups, in collaboration with PNPM workers, village leaders and the wider community; the establishment of creative community groups (CCGs); the mapping of key development concerns and processes to address them; the development of stories and themes based on the analysis; preparation for and the staging of theater performances or video screenings, with the participation of other cultural workers and village leaders, PNPM workers and members of the general community; the holding of post-performance focus group discussions with key stakeholders to discuss potential solutions to the communities’ concerns; the provision of assistance to the CCGs to develop future

Creative Communities II (CCII) | 55

56 | 2015 PSF PROGRESS REPORT

plans, with the provision of small seed funds to the groups to enable them to carry these plans out. 2 Capacity-building: Most of the capacity-building activities related to the theater for development and participatory videos were completed by late 2014. These activities involved 68 participants, including PNPM facilitators, creative empowerment cadres (Kader Pemberdayaan Kreatif, or KPKs), field coordinators and technical specialists, with all of these activities supporting the activities implemented under Component 1 of the project. Six sub-grantees in Bali, NTT, and West Java received hands-on training and support to develop proposals and design programs. These sub-grantees were also provided with support to build their capacities in the areas of financial and operational procedures and of the reporting requirements of the project. A final workshop was held in DI Yogyakarta in March 2015 to enable participants, implementers and other stakeholders to reflect on best practices and lessons learned from the theater for development activities. Twenty participants, including all of the theater facilitators, worked to formulate recommendations for future empowerment and creative theater processes. 3 Monitoring and evaluation. zz In March 2015, the Yogyakarta-based research institute MIGUANI designed and implemented a perception survey in 24 target villages. This process involved a household survey, with interviews with 665 participants in the activities implemented under the project, in addition to 24 heads of villages, 24 KPKs and 52 PNPM workers, all of whom were surveyed to determine their perceptions regarding the project and its impact. zz Five ethnographers and anthropologists were recruited to prepare 11 case studies on the creative empowerment process and six case studies on sub-grants. The compilation of case studies is available in English and Indonesian. zz A number of events were held to stimulate reflection both to improve ongoing operations and to generate recommendations for future creative communities’ projects. These events included an internal Yayasan Kelola Learning Workshop in December 2014 to formulate lessons learned and recommendations. Mid-term reflection sessions were held with field facilitators at the midway point in their three-month stays in the villages to which they were assigned. In NTT, the eight KPKs also attended this reflection

zz

zz

zz

zz

session. Four theater facilitators in West Java participated in two reflection workshops held in the period from January to March 2015. Final reflection sessions were held with facilitators from Bali and NTT in Bangka in January 2015, with similar events being held for facilitators from West Java in Bali in March 2015, with these events being conducted to generate lessons learned both at the organizational and individual levels. A final PSF/Kelola reflection session was held at the end of March 2015 to discuss preliminary evaluation findings and to generate recommendations for the future. Kelola prepared an evaluation on the relevance, efficiency, effectiveness and sustainability of sub-grant activities. This evaluation concluded that CSOs or community organizations in remote areas generally have very limited organizational, targeting, documentation or accounting capacities, and thus sub-grants to these organizations should include ample time and resources for capacity building. Field facilitators, coordinators and KPKs produced and submitted large numbers of reports to the Yayasan Kelola management team to record their reflections and to document lessons learned from their field activities, with a review of all these reports incorporated into the Project Completion Report. Yayasan Kelola finalized the Project Completion Report and submitted it to the World Bank in May 2015. The World Bank’s Implementation Completion Report (ICR) was drafted in June 2015, following which a consultative process with stakeholders was conducted. The final draft was submitted in September 2015.

FUTURE PLANS Together with representatives of the Ministry of Home Affairs, the implementing agency for PNPM Rural, the project team discussed the project’s training modules, outputs and evaluations with representatives of the newly-established Ministry of Villages, Disadvantaged Areas, and Transmigration (MoV ) to facilitate their incorporation into inclusion strategies at the local level. The Australian Department of Foreign Affairs and Trade’s (DFAT ) Managing Contractor, KOMPAK, is now mandated with the responsibility for the management of activities related to the project and is looking for mechanisms to

Creative Communities II (CCII) | 57

incorporate the principles and lessons learnt through the implementation of the project into Village Law implementation and frontline service delivery support to the MoV.

LESSONS LEARNED The project demonstrated that creative approaches are highly effective as a means to engage women, youth and poorer in marginal members of the community into community planning processes. More than half of the direct participants in CEP activities were female, while in the Phase 2 proof-of-concept trials, 43 percent of participants were classified as poor; 72 percent as marginalized; and 36 percent as youth under the age of 17. In particular, studies and evaluations showed that youth had often previously been excluded from village planning processes and were attracted by the opportunity to develop their skills in the area of new technology (especially through activities involving video-making).

The end-of-project survey showed that creative approaches were effective in increasing the agency of creative community group members, with this conclusion drawn on the basis of measurable increases in self-esteem, in the ability to express opinions, of strengthened networks, and of the increased awareness of participation as a right. Phase 1 of the project provided evidence that when creative activities are integrated into planning processes, creative approaches are highly effective as a means to increase the level of attendance at formal meetings; to motivate people to participate; to enable poorer and marginalized members of communities to express their opinions and aspirations and thereby to influence decision making processes. However, it also showed that the achievement of these goals requires joint planning by and a high level of coordination stakeholders, and an adequate timeframe to implement activities.

58 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS Targets (Cumulative)

Result Indicators

Unit of Measure

Baseline

Total Target

2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: Increase in public participation in village planning processes in project locations Project design completed & CCII formally launched

-

-

Project design completed & CCII formally launched

Project design in Project Paper approved by World Bank

Project restructured to reflect transition plan, plan approved

Pilot indicates improvements in PNPM public participation

# people per PNPM village forum

20-40

50-100

50-100

50-100

Pilot indicates that poor & marginalized people are better able to raise their concerns

-

Poor people and marginalized groups have limited access to decision-making in PNPM Rural

Poor and marginalized people are able to convey their needs to policy-makers through CCII cultural activities

Poor and marginalized people are able to convey their needs to policy-makers through CCII cultural activities

Poor and marginalized people are able to convey their needs to policy-makers through CCII cultural activities

Consultations on lessons from CCII

# of consultations

0

10

8

10

10

Field assessment to inform design

-

-

Field assessment completed

Field assessment completed

Field assessment completed

Field assessment completed

Fullfledged design that can operate at scale

-

-

Full-fledged design and budget developed and ready for implementation

Project Operation Manual and Sub-Grant Manual developed and approved by World Bank, Project Paper approved by World Bank

Project Operation Manual and Sub-Grant Manual developed and approved by World Bank, Project Paper approved by World Bank

Project restructuring to reflect transition of project from World Bank to MC

Pilot cultural activities conducted to inform design of CCII

# of culture activities

0

11

7

53

69

Training on Creative Approaches

# people trained

0

40

0

Monitoring and evaluation framework determined

-

-

Phase 1 evaluation completed, monitoring and evaluation framework for project developed

Tools for monitoring developed; Evaluation of CEP activities completed

Phase 1 Extension completed

Phase 1 Pilot completed, Extension completed with revised design

No 2015 village fora due to early closure of PNPM

70-200 people

Poor and marginalized people are able to convey their needs to policy-makers through CCII cultural activities

Evaluation of Pilot and Extension shows that CCII has improved access of the poor and marginalized to decision-makers

On target

Findings based on evaluation of Phase 1 and Extension survey results

6

24

14

-

Field assessment completed

On target

Field assessment findings informed design of CCII Phase 1

Project Operation Manual and Sub-Grant Manual developed and approved by World Bank, handed over to GOI and MC

Project Operation Manual and Sub-Grant Manual developed and approved by World Bank, handed over to GOI and MC

Handover of completed Manuals to GOI and MC

Original plan of full project scale up was restructured and any future scale up will be under MC.

33

86

+17

Restructured Phase 1 Extension increased locations from 16 to 24 sub-districts, and advanced the closing date to March 31, 2015.

68

6

74

+34

Most training completed in 2014. Six NGO Sub-grantees trained in 2015.

Phase 1 evaluation completed, monitoring and evaluation framework for full project developed

Evaluation design to cover Phase 1 Extension, Baseline survey, Perceptions survey, Project Completion Report, ICR

Evaluations of Phase 1, Phase 1 Extension, Baseline Survey, Perceptions Survey, Project Completion Report, ICR

50-100

Formal launch not completed

Due to transition plan, formal launch and scale up will move to future activities under the Managing Contractor Based on Phase 1 data

Evaluations adapted to capture results over period of World Bank oversight. Incorporated into handover to GOI and MC.

Creative Communities II (CCII) | 59

Indicator Indicator 1:

Baseline Value

Original Target Values (from approval documents)

Formally Revised Target Values

Actual Value Achieved at Completion or Target Years

Increase in public participation in village planning processes in project locations

Value quantitative or qualitative)

50%

Date achieved

200-500% (Phase 1) 03/31/2015

Comments (incl. % achievement)

Phase 1 villages (39% of expenditures) experienced increases of 200-500%. Due to early closure of PNPM activities by GoI, there were no planning processes in Phase 1 Extension villages (61% of expenditures). 70% of beneficiaries in Phase 1 Extension said they were more motivated to participate in formal village meetings after the project.

Indicator 2:

Increased participation of women in village planning processes

Value quantitative or qualitative)

50%

Date achieved

93% (Phase 1) 03/31/2015

Comments (incl. % achievement)

Women’s participation increased by 93% in Phase 1 locations. Phase 1 Extension had no planning processes due to early closure of PNPM activities by GoI, but 52% of beneficiaries were women and 70% of beneficiaries said they were more motivated to participate in formal village meetings after the project.

Indicator 3:

Increased participation of marginalized people in village planning processes

Value quantitative or qualitative)

50%

Date achieved

N.A. 03/31/2015

Comments (incl. % achievement)

Phase 1 evaluation data did not identify marginalized people. Phase 1 Extension had no PNPM planning processes due to early closure of PNPM activities by GoI, but 72% of beneficiaries were marginalized and 70% of beneficiaries said they were more motivated to participate in formal village meetings after the project.

Indicator 4:

Increased participation of poor community members in village planning processes

Value quantitative or Qualitative)

50%

Date achieved

268% (Phase 1) 03/31/2015

Comments (incl. % achievement)

Participation of the poor increased by 268% in Phase 1 locations. Phase 1 Extension had no planning processes due to early closure of PNPM activities by GoI, but 45% of beneficiaries were poor and 70% of beneficiaries said they were motivated to participate in formal village meetings.

Indicator 5:

Beneficiaries have increased understanding of PNPM and village planning process

Value quantitative or qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

53% of Phase 1 Extension beneficiaries reported increased understanding of PNPM and village planning processes, with another 28% stating “I don’t know” – possibly reflecting confusion over the ending of PNPM and uncertainty over processes under the Village Law.

Indicator 6:

Women beneficiaries with increased PNPM understanding

Value quantitative or Qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

55% of Phase 1 Extension women beneficiaries reported increased understanding of PNPM and village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting confusion over the ending of PNPM and uncertainty over processes under the Village Law.

Indicator 7:

Youth beneficiaries with increased PNPM understanding

Value quantitative or qualitative)

0

Date achieved

05/30/2013

70%

53% 03/31/2015

50%

55% 03/31/2015

50%

42% 03/31/2015

60 | 2015 PSF PROGRESS REPORT

Indicator

Baseline Value

Original Target Values (from approval documents)

Actual Value Achieved at Completion or Target Years

Formally Revised Target Values

Comments (incl. % achievement)

42% of Phase 1 Extension youth beneficiaries reported increased understanding of PNPM and village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting confusion over the ending of PNPM and uncertainty over processes under the Village Law.

Indicator 8:

Marginalized beneficiaries with increased PNPM understanding

Value quantitative or Qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

40% of Phase 1 Extension marginalized beneficiaries reported increased understanding of PNPM and village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting confusion over the ending of PNPM and uncertainty over processes under the Village Law.

Indicator 9:

Poor beneficiaries with increased PNPM understanding

Value quantitative or qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

45% of Phase 1 Extension poor beneficiaries reported increased understanding of PNPM and village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting confusion over the ending of PNPM and uncertainty over processes under the Village Law.

Indicator 10:

Number of people trained

Value quantitative or qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

22 PNPM facilitators, 31 CCII facilitators, 24 CCII village Creative Empowerment Cadres, and 1,300 village cultural workers.

Indicator 11:

Training module and tools for PNPM and Village Law implementation

Value quantitative or qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

Two manuals for the Creative Empowerment Process (one on theater for development and another on participatory video), one manual for effective facilitation using creative approaches, and one advanced module on sustaining growth and continuation of creative community groups.

Indicator 12:

Number of cultural workers

Value quantitative or qualitative)

0

Date achieved

05/30/2013

Comments (incl. % achievement)

1302 local cultural workers implemented cultural activities linked to village planning. The project attracted and mobilized far more cultural workers than expected at the village level to partake in its activities.

50%

40% 03/31/2015

50%

45% 03/31/2015

600

1531 03/31/2015

Modules and tools developed

4 03/31/2015

400

1302 03/31/2015

Village Training Project | 61

WINDOW TWO

VILLAGE TRAINING PROJECT

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Closed

Bambang Soetono (bsoetono@worldbank. org, from April 1, 2015)

The Directorate General for Village Government Guidance (Ditjend Bina Pemerintahan Desa), The Ministry of Home Affairs, and the World Bank

Start Date to Closing Date March 25, 2014 to December 31, 2015

PROJECT RATIONALE AND OVERVIEW In January 2014, the Indonesian President signed the Village Law (Undang-Undang 6 Tahun 2014 Tentang Desa) into effect, which provides increased authority and resources to villages in the context of a broader framework to optimise the impact of decentralization and poverty reduction initiatives. With village governments now empowered to manage a higher value of funds to provide public services, there was a perceived need to improve the capacities of these governments and to establish accountability mechanisms to ensure that they provide optimal services to the communities they serve. With the current low level of capacities and the lack of established accountability mechanisms, addressing these gaps has required substantial investments. The objective of the VTP was to support a Government capacity development program to improve the core competencies of village authorities, and thereby to prepare them for the increased responsibilities that will accompany the increased inflows of resources under the new decentralization framework. The project consists of three components, as follows: (i) reviewing and revising the Government training program and modules for village authorities; (ii) enhancing the capacities of governmental training agencies and selected non-governmental organizations to ensure they can deliver quality training at scale; and (iii) strengthening the policy framework and implementing regulations related to village capacity building in such a way that they support the realization of the intended objectives of the Village Law. The program was intended to add value by improving the quality of existing training programs and by mainstreaming PNPM principles and training materials into regular village government capacity development programs.

Geographic Coverage

Approved Budget

National

US$1,645,000

PROGRESS IN 2015 The ability of the implementing agency, the Ministry of Home Affairs (MoHA), to implement the project in 2014 and 2015 was negatively impacted by a broad range of institutional changes that resulted from the political transition in late 2014. With the establishment of a new ministerial structure, the responsibility for the implementation of PNPM Rural was transferred from MoHA to the new Ministry of Village, Disadvantaged Areas and Transmigration (MoV ). As a result of this transfer, there was significant confusion over the demarcation of responsibility for issues that had previously been wholly the responsibility of MoHA and which now appeared to be split between the two agencies. The new institutional arrangements took some time to evolve, with clarification provided by Presidential Regulation No. 11/2015 on the Organizational Structure of the Ministry of Home Affairs (MoHA), and Presidential Regulation No. 12/2015 on the Organizational Structure of MoV. Under these regulations, MoHA remains responsible for matters related to village government, while MoV is responsible for matters related to village development and community empowerment. Despite these Presidential Regulations, issues related to the assignment of responsibility for the implementation of VTP remained unresolved until May 2015. At that point, the Ministry of Finance (MoF), MoV and MoHA agreed that VTP would remain under MoHA’s mandate. However, to date, the administrative details for grant management have not yet been resolved, and the grant was not been inserted into MoHA’s budget plan for 2016, despite the issuance of the required letter from MoHA to MoF confirming they would revise the budget to include the VTP.

62 | 2015 PSF PROGRESS REPORT

The first grant disbursement was conducted in October 2014, after MoHA secured approval to include VTP activities in the revised DIPA for 2014, and to include the planned procurement of an administrative service firm to manage staff in the project implementation unit in the final quarter of 2014. However, due to new national procurement guidelines, it not yet been possible to procure the services of the administrative service firm. This was further complicated by a decision to block the 2015 DIPA for MOHA’s Directorate General for Village Government Guidance until the new MoV finalized the new organizational structure mandated under Presidential Regulation No. 15/2015 and recruited new Echelon I and II staff. Because of the delays, no activities were carried out under the recipient-executed trust fund. Throughout 2015, the PSF continued to provide technical assistance and policy advice to the Directorate General of Village Government Guidance to conduct a consolidation training workshop for 36 grand master trainers and a training of trainers workshop for 210 master trainers. Although the World Bank continued to engage in consultations with MoHA and MoF to facilitate the restructuring and alignment of the project with the broader implementation of Village Law and to reflect the new institutional arrangements at MoHA, the Recipient did not submit a letter to extend the project prior to the deadline and nor did they allocate funding for the project in the Government budget (DG Bina Pemdes 2016 DIPA). Thus, the project was closed on December 31, 2015, as scheduled.

FUTURE PLANS The PSF will continue to engage with MoHA and possibly seek to develop a new project that is adapted to the new context created by the implementation of the Village Law and the establishment of the new institutional arrangements described in the previous section.

LESSONS LEARNED A major lesson learned is that it is not always possible to predict or manage the impact of major restructuring to high level institutional arrangements. In particular, the project was unable to anticipate or manage the impact of the transfer for the responsibility of the implementation of the project from one ministry (MoHA) to a new one (MoV ). Budget re-allocations, new institutional arrangements, and a number of bureaucratic obstacles lengthened the

project’s transition time, resulting in the failure to achieve the majority of the project’s targets. Projects of this type should be closely monitored and adapted, especially in the context of a post-ministerial restructuring, so that disbursements can be effectively utilized and the transition takes place in as smooth a manner as possible. Although it is hoped that the project may continue in a new form under MoHA, the failure to manage the transition underscores the need to better understand the internal communication dynamic between stakeholders. In addition, communicating clear and comprehensive expectations is key to effective implementation.

Village Training Project | 63

KEY PERFORMANCE INDICATORS Result Indicators

Unit of Measure

Targets (Cumulative) Baseline

Total Target

2013

2014

2015

2016

Delivered in 2014 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To develop and pilot a Government training program for village authorities on core functions and skills in order to prepare villages for increased responsibilities and inflows of resources under the decentralization framework # of relevant GOI training agencies that have incorporated the improved training design and modules into their training program/ agenda

0

10

10

10

0

3

-7

# of laws/regulations/guidelines developed and/or revised with input from the project to support village institutional development

0

5

5

5

0

2

-3

Component 1: Adoption of the improved village training design and plans into the regular GOI training program # of village training modules revised

0

6

10

10

0

6

-4

PMD used APBN (national budget funds) and off-budget development partner resources to deliver this activity.

# of jurisdictions where the training materials are piloted

0

10

10

10

8

11

+1

PMD used ABPN (national budget funds) and off-budget development partner resources to deliver this activity.

Component 2: Enhanced capacity of GOI training agencies and selected NGOs in delivering village training programs # of training agencies and institutes have received capacity building on the improved village training programs

n/a

25

25

25

0

3

-22

# of NGOs/CSOs involved in the development of village training design/plans

0

50

50

50

0

33

-17

# of operational master trainers

0

500

500

500

0

210

-290

Grand Master Trainers 36; Master Trainers 21

Component 3: Strengthened policy and mechanism in village capacity building to support PNPM Road Map and village institutional development # of policy recommendations on village institutional development produced and discussed with relevant parties

0

10

Action plan for the adoption and delivery of improved village training programs by the Government

0

Government rollout of training begins

10

10

0

2

-8

-

-

64 | 2015 PSF PROGRESS REPORT

WINDOW TWO

PRO-POOR PLANNING, BUDGETING AND MONITORING (P3BM)

PROJECT RATIONALE AND OVERVIEW The objective of the project is to improve the poverty targeting of local government expenditures and to improve local government responsiveness to community needs through the scale-up and institutionalization of the Pro-poor Planning, Budgeting and Monitoring (P3BM) program. The project is based on the assumption that the availability and use of reliable evidence and data can make planning decisions more pro-poor and responsive to local needs. P3BM is aimed at ensuring that local government officials across the country have the information and instruments to produce work plans and budgets that are sensitive to socio-economic inequalities; that they have the tools to monitor and evaluate local government performances related to the provision of public services for the poor; and that citizens also have access to monitoring tools to ensure that such plans are implemented appropriately. The P3BM project was originally supported by the Asian Development Bank (ADB) and United Nations Development Program (UNDP) in the period from 2007 to 2009. Since 2010, it has been managed by Bappenas’ Poverty Reduction Unit, which requested support from the PSF to build capacities and to conduct an initial series of pilots under the Local Government Capacity Development project. Based on positive outcomes from these pilots, Bappenas requested that P3BM be scaled-up and implemented under a separate trust fund. The project was approved by the Joint Management Committee (JMC) in April 2012, with Kemitraan appointed to serve as the implementing agency in coordination with Bappenas. Project activities included the provision of provincial cascade training for master trainers; the establishment of provincial P3BM joint secretariats supported by the national P3BM Secretariat; the provision

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Closed

Bambang Soetono ([email protected], from April 1, 2015)

Kemitraan Bagi Pembaruan Tata Pemerintahan (Partnership for Governance Reforms)

Start Date to Closing Date May 26, 2013 to June 30, 2015 Geographic Coverage

Approved Budget

National

US$1,665,000

of technical assistance to selected district governments; the mainstreaming of a new monitoring tool for local Bappeda offices and communities to assess district technical agency’s actual implementation against planning and budgeting; and the design of a monitoring and evaluation framework.

PROGRESS IN 2015 The project was closed on June 30, 2015 as scheduled. A final implementation support mission was carried out in April 2015, with this mission finding that, cumulatively, 85 local governments had adopted poverty targeting in annual development planning, exceeding the project’s target by 25. Of the 85 local governments that had adopted the P3BM tools, 73 local governments had used these tools to formulate local budget plans and 12 local governments had used them to analyze local data related to MDGs. After being trained in P3BM, local governments often allocated increased funds in their annual provincial/local government budgets (Anggaran Pendapatan dan Belanja Daerah, APBD). The measure used to determine whether local governments had adopted the tools was not standardized, which resulted in some inconsistencies. In some cases, “adoption” referred to using several of the P3BM tools, while in others, it meant using only one aspect of the toolkit. In addition, based on data from 15 sampling locations, the mission found that the proportion of direct local government budgets allocated for MDG targeting and poverty-related spending stood at an average of 9.3 percent. Fifteen P3BM provincial-level clinics were established and 74 sub-national MDG data sets were improved in 2015. These were both significant achievements that exceeded the established targets. Although no data was collected from civil society organizations (CSOs) using P3BM

Pro-Poor Planning, Budgeting and Monitoring (P3BM) | 65

instruments to track district expenditures, nine CSOs and community groups were trained in P3BM tools and used these tools to monitor local expenditures. Although the project established a target of implementing a business plan for the replicability and sustainability of P3BM, this plan had not been implemented by the end of the period of the grant. Nevertheless, Bappenas has expressed its commitment to supporting P3BM after the end of the present grant period and to adopting it for implementation in the context of the Village Law to achieve improvements in frontline service expenditure. Throughout the project, there was a considerable degree of cost sharing with local governments, with more than half of the districts trained (54 districts and cities) using their own APBD budgets by the end of the project.

zz

zz

FUTURE PLANS zz

zz

The project was closed on June 30, 2015 as scheduled, following a final implementation support mission in April 2015. The Bank is assisting Kemitraan and the National Secretariat in the drafting of a business plan. This plan creates opportunities for P3BM’s poverty-targeting functions to be adapted in the context of the new Village Law framework.

LESSONS LEARNED zz

zz

A policy umbrella is necessary to facilitate the acceptance of P3BM as part of local government planning processes. Through implementation of previous phases of the P3BM project, it has been found that most civil servants/government agencies will not act until regulations are promulgated or technical guidelines are provided. The fulfillment of these preconditions will require support from a number of areas of government. In turn, this will require a significant degree of commitment in terms of time and effort by the executing agency. Efforts to enhance inter-governmental cooperation at the national level are likely to establish a solid basis for improved collaboration at local government levels. The appointment of a CSO (Kemitraan) to serve as the national-level implementing agency may have contributed significantly to the achievement of the development objective. However, this appointment also underlined the necessity of ensuring that all parties had a clear understanding of their respective roles and responsibilities. Moreover, it also demonstrated that the design of the project must be

zz

tailored to recognize the varying strengths of each stakeholder in terms of their ability to add value, in order to avoid the gradual marginalization of the implementing agency. An official agreement or Memorandum of Understanding (MOU) between national government and local governments should be formulated prior to the commencement of national/local government collaboration. This agreement should clearly outline the roles and responsibilities of all stakeholders and provide a clear framework for resource allocations, including commitments to staff capacity building; the release of staff to support P3BM implementation; and support for local data forums. Amongst other benefits, this may lessen the impact of problems caused by the frequent rotation and reassignment of government staff. The project’s capacity-building approach should be reassessed, with this approach currently focusing on meeting the learning needs of the envisaged provincial master trainers. Refresher training should be tailored to meet the learning needs of participants, with a well-planned mentoring program to reduce the ongoing burden and expense of having to involve national trainers in all district-level trainings. Finally, the new policy environment created by the enactment of Village Law is also likely to influence the P3BM approach. Under the Village Law, there is a significant change in the division of tasks and responsibilities related to local development management, including those related to the achievement of MDGs/SDGs and to the implementation of other pro-poor budget policies. Under the Village Law, 10 percent of the national budget will be allocated and transferred directly to villages. This will result in a far greater degree of autonomy and authority for village-level administrations to determine the use to which their development funds are put.

66 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS Targets (Cumulative) Result Indicators

Unit of Measure

Baseline

Total Target

2013

2014

2015

2016

Delivered in 2014 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To improve poverty targeting of local government expenditures and local government responsiveness to community needs through the scale-up and institutionalization of the P3BM program Component 1: Provincial Cascade Training # master trainers trained

152

280

160

0

160

284

There are 679 people who participated in master trainer training and certified. There was no rigorous assessment of participants’ capacity to then become “master trainer”. Implementing and executing agencies estimate that of those who had participated in this training only approximately 41%, that is, 284 people, are currently capable (and available) to act as master trainers. The 284 participants passed the Training of Trainers ( TOT ) program and received certification for being provincial-level master trainers, who further trained a total of 4630 Local Government Task Forces (Satuan Kerja Perangkat Daerah, SKPD) officials, local academics, and CSOs

Component 2: Technical Assistance for Local Governments # of local governments that have adopted poverty targeting in annual development planning

11

60

40

28

24

73

Of the 85 local governments who have adopted the P3BM tools, 73 local governments have used it to set the local budget plan and 12 local governments used it to analyze the local MDGs data. The measure used for “adoption” was not standard. In some cases this meant using several of the P3BM tools, in others, one aspect of the toolkit only. Intervened locations: 2013 à15 2014 à57 2015 à13 Total: 85 regions (19 provinces and 66 districts; or 31 targeted location and 54 non-target location) * Non-target locations were financed by APBD

Increased percentage of direct LG budgets allocated for MDG targeting and poverty-related spending

0

7.5%

7.5%

7.5%

0

9.3%

This figure of 9.3%, provided in the Completion Report (C.R), is based on the Seknas analysis of 15 local governments that received P3BM training and technical assistance in early 2013, and compares the MDG-related spending in APBDs pre-P3BM (2013) and post-P3BM (2014),* in both target and non-target areas. It should be noted that these figures differ to those provided in the final ISR, where the increase is reported as 6.15% in local government budget allocations, which is less than the target. It is also interesting to note that if “target” areas only are considered (7 locations), the percentage increase is reduced, closer to 5.5%.

# of P3BM provincial clinics established

0

12

6

0

3

15

The CR notes the establishment of 15 secretariats/clinics. However, Seknas subsequently advised that only 10 of the provincial secretariats/clinics obtained official decree letter (Surjat Kerja, SK) of support from Governor or head of Bappeda to confirm their existence.

Pro-Poor Planning, Budgeting and Monitoring (P3BM) | 67

# of CSOs and community groups that use P3BM instruments to track district pro-poor expenditures

0

60

50

0

41

9

The project recorded to train 254 CSOs’ staffs, of 9 CSOs and community groups were trained in P3BM tools and used the P3BM tools to monitor local expenditures

Component 3: National Secretariat and Provide Institutional Support Business plan developed for the long-term sustainability of P3BM

-

Business plan implemented

Business plan implemented

Business plan implemented

Business plan prepared

Business plan prepared

The business plan provides a future opportunity for P3BM’s poverty-targeting functions to potentially be adapted to the new Village Law framework.

Sub national MDG data sets improved

3

Database used

15

0

24

74 local governments used P3BM database

Although not one of the official KPIs, and not included in the Grant Agreement, this particular indicator had been included (against Component 3) in the World Bank’s Implementation Status Reports (ISRs). This figure hence originates from the final ISR, and is provided here for consistency.

* The 14 locations in the sample were reportedly chosen because of availability of data.

68 | 2015 PSF PROGRESS REPORT

WINDOW TWO

PSF SECRETARIAT

PROJECT RATIONALE AND OVERVIEW The PSF Secretariat provides operational and administrative services to the PSF to sustain an effective framework for the implementation of PNPM Mandiri. In addition to supporting the management of the PSF and coordinating the Joint Management Committee (JMC), the Secretariat provides fiduciary oversight and reports on the progress of all PSF programs. Key activities undertaken by the Secretariat include: (i) administering grant agreements issued through the PSF Trust Fund; (ii) coordinating program supervision missions and appraisals; (iii) providing operational and technical assistance to agencies managing PNPM Mandiri programs at the national, provincial and district levels; (iv) preparing financial reports and quarterly and annual progress reports; and (v) documenting and disseminating minutes of JMC meetings. The Secretariat supports the growth of the PSF portfolio, with the total value of commitments having increased from US$ 37 million in 2008 to US$ 414 million in 2015, and manages a range of activities by engaging with a large number of government, civil society and other agencies. Nearly 80 percent of PSF resources are implemented through programs managed by the Government and Indonesian civil society organizations. To support this growth and diversification, the Secretariat focuses on enhancing client engagements with the JMC and other PNPM stakeholders and on maintaining the management and quality control systems to ensure the successful implementation of PSF-financed activities and the overall effectiveness of the development and coordination platform.

PROGRESS IN 2015 Despite starting 2015 with a leaner portfolio, the Secretariat provided an increased volume of operational

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Active

Sonya Woo (swoo1@ worldbank.org)

The World Bank

Start Date to Closing Date

Approved Budget

January 31, 2008 to March 31, 2018

US$16,977,935

and technical services to PSF task teams and other stakeholders, particularly in the surrounding context of the closure of projects, the dialogue around the transition to the Village Law, and changes in the new Government administration’s structure and priorities. A number of new proposals were submitted in this year for JMC virtual approval, including the SUSENAS Consumption Experiment, the long-term PNPM Generasi Impact Evaluation, the Village Law Support project, and the Improved Frontline Delivery of Early Childhood Education and Development (ECED) Services. Beyond monitoring the PSF budget and the project progress of the project portfolio, the Secretariat also played a significant role by providing timely support to project teams to complete key deliverables The team also provided project restructuring, extension, and closure support, and helped intensify task teams’ coordination with the Managing Contractor, KOMPAK, in the context of the implementation of the Village Law. With these and other changes, portfolio management remained on track throughout the year, with the total value of disbursements for 2015 (as of 31 December 2015) reaching US$ 37.3 million, or 104 percent of the funds allocated under this year’s revised disbursement target of US$ 36 million (given the change in Generasi’s implementing partner, which resulted in the postponement of planned disbursements). With a number of projects scheduled for closure in 2015, the Secretariat provided support to project teams to facilitate project both completion procedures and reporting requirements. Programs that closed during the year included PNPM Communications, Revolving Loan Funds, and the Village Training Project. Core communications functions (social media, South-South Knowledge Exchanges, social media, knowledge management, etc.) were absorbed into the Secretariat’s activity portfolio, as well.

PSF Secretariat | 69

FUTURE PLANS

new projects’ task teams in order to ensure the smooth management of these changes.

In 2016, the Secretariat will focus on the completion of projects scheduled for closure under the existing portfolio, with major deliverables including five Analytical Services and Advisory (ASA)s, two Implementation Status Reports, and three GRM reports. PNPM Rural is scheduled for closure at the end of CY2016, and a South-South Knowledge Exchange hosting the Government of India is slated for this year. A new teacher accountability project called KIAT Guru will debut as well. In terms of the communications functions, these will be under the oversight of the Secretariat, and adapted to Village Law implementation. The Secretariat will continue to provide operational and quality-assurance services to these

LESSONS LEARNED Smooth and efficient implementation of the portfolio was achieved during the calendar year, despite a reduced Secretariat headcount, partly by way of continuously keeping the entire PSF team aware of impending deliverable deadlines, as well as providing them with reference samples, internal-use manuals and best-practice operational guidelines for different types of deliverables from its internal reference library.

KEY PERFORMANCE INDICATORS Targets (Cumulative)

Result Indicators

Unit of Measure

Baseline

Total Target

2012

2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: Provide operational and administrative services to the PSF to sustain an effective framework for the implementation of PNPM Mandiri -3

# of JMC meetings held within the year

# meetings 2 (2010)

6/year

6

6

6

6

6

3

3 (2015)

Contributions (US$)

US$ million

90 (2010) 132 (2008-10)

n/a

n/a

n/a

n/a

n/a

n/a

12

405

Approved commitments (US$)

US$ million

50 (2010) 90 (200810)

n/a

n/a

n/a

n/a

n/a

n/a

10

414

Disbursements (US$)

US$ million

28 (2010) 36 (200810)

n/a

188

271

312

349

370

37

336

-13

Disbursement ratio

Disbursed during year/undisbursed at year start

20% (2009)

70% each year

70%

70%

70%

70%

70%

73%

73%

-4%

% of funding executed by Government

% of total approved projects

53% (2010)

75%

75%

75%

75%

75%

75%

73%

73%

-2%

% of funding executed by NGOs

% of total approved projects

7% (2010)

10%

10%

10%

10%

10%

10%

4.9%

4.9%

-5.1%

# of active projects

# of projects

15 (2010)

n/a

n/a

n/a

n/a

n/a

n/a

14

14

n/a

1 AR

1 AR, 3 QU, 2 GR

1 AR, 3 QU, 2 GR

1 AR, 3 QU, 2 GR

1 AR, 3 QU, 2 GR

1 AR, 3 QU, 2 GR

1 AR, 3 QU, 2 GR

1 AR, 3 QU, 2 GR*

1 AR, 3 QU, 2 GR*

# types of reports to the JMC1

Virtual JMC meetings.

Disbursement reached $37.3 million, or 104 percent of the revised CY15 Disbursement Plan of US$ 36 million

Including projects closed on December 31, 2015

*AR = Annual Report; QU = Quarterly Updates; GR = Governance Report (Note: the last Quarterly Update of the year is replaced by the Annual Report)

WINDOW FOUR M&E AND SPECIAL STUDIES

72 | 2015 PSF PROGRESS REPORT

WINDOW FOUR

M&E AND SPECIAL STUDIES

PROJECT RATIONALE AND OVERVIEW Through the implementation of PNPM Mandiri and its predecessor programs over the past 15 years, the Indonesian Government has gained significant experience in pioneering and implementing a range of community-driven development (CDD) programs. These programs have benefitted from rigorous analytical works conducted by the PSF Analytics team in order to improve their performance through enhancements to their design and implementation. The recently enacted Village Law and PSF’s engagement with the implementation of this law create additional opportunities for the team to continue to meet the need of PSF stakeholders for evidence-based policy inputs. Since its inception in 2009, the PSF Analytics program has successfully completed 18 evaluations and/or studies to support PNPM Mandiri and other smaller initiatives. The team has consistently emphasized the importance of evidence-based analysis as an input to inform policy formulation and program implementation. Employing a wide variety of mixed-research methods, the PSF Analytics program aims to: (i) provide stakeholders with empirical data regarding the results and impact of PNPM Mandiri; (ii) conduct research in greater depth on special topics of relevance to PNPM and the social development fields in Indonesia; and (iii) enhance the ability of Indonesian social science research organizations to conduct M&E and special studies. Currently, the program is focusing on evaluations of the PNPM Rural and Generasi programs; on ongoing analytics to support the implementation of the Village Law; on emerging initiatives related to frontline service delivery; and on activities to build the capacities of the Indonesia Statistical Agency (Badan Pusat Statistik, BPS).

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Active

Lily Hoo (lhoo@ worldbank.org)

The World Bank

Start Date to Closing Date May 26, 2008 to December 31, 2017 Geographic Coverage

Approved Budget

National

US$15,629,194

To ensure the ongoing provision of the required level of support to Government and other stakeholders, the team will continue to strive to provide high quality, relevant and timely evaluation and analysis, while expanding its partnerships to facilitate the delivery of analytical and knowledge management products.

PROGRESS IN 2015 In 2015, the Analytics program continued to make satisfactory progress towards the achievement of its development objective. In addition to focusing on the completion of ongoing studies that commenced in 2014, the team also began to provide M&E support to core PNPM Mandiri programs and other smaller initiatives, and to conduct a number of analytic works related to the emerging priorities for the provision of support for the implementation of the Village Law. In addition, the team continued to provide capacity-building support through the BPS pilot project to improve the quality of the consumption module of the annual National Socio-economic Survey (SUSENAS). Finally, to support knowledge sharing and information dissemination, the team published a number of reports and policy briefs covering specific issues related to the implementation of community-driven development programs. Throughout 2015, the team continued to conduct evaluations of the PNPM Rural and PNPM Generasi programs. For PNPM Rural, the Analytics and PNPM Rural task teams conducted the PNPM Rural Final Evaluation 2012-2015. This evaluation aims to measure the impacts of the program in terms of four key components, namely: (i) the Technical Quality of three types of infrastructure (roads and bridges, irrigation systems, and clean water

Together with PNPM Rural Team, PSF Analytics Team conducted supervision mission to Nagari Taram, Harau Sub District, West Sumatra to monitor data collection on technical quality of infrastructures build by PNPM Rural. This visit was part of PNPM Rural Final Evaluation 2012-2015 that aim to measure the program impact.

supply systems); (ii) Economic Impact Analysis; (iii) Beneficiaries’ Satisfaction; and (iv) Revolving Loan Funds (RLF) Performance and Benefits. Conducted in 150 villages spread across 12 randomly-selected provinces, this quantitative study examines 182 infrastructure sub-projects (60 roads, 36 bridges, 43 clean water supply systems and 43 irrigation systems) and involves more than 3,600 households. It is expected that the results of this final evaluation will inform decisions related to PNPM Rural’s completion stage by the end of 2016. In addition, the PSF also conducted the PNPM Generasi Performance Monitoring Survey (PMS), a mixed-methods study that aims to track the performance of the program in terms of its 12 results indicators throughout 2014. For the quantitative component of this survey, data from more than 1,500 households and 90 puskesmas in 90 villages across seven PNPM Generasi project provinces was collected and analyzed. For the qualitative component, together with the Center for Population and Policy Studies of Gadjah Mada University (PSKK UGM), the team identified

and analyzed bottlenecks in the implementation of PNPM Generasi in four villages in two provinces and provided recommendations to address these challenges. While the quantitative component has been completed, the qualitative component faces delays due to the weak capacities in the areas of analysis and report-writing of the consulting firm hired to conduct the evaluation. Thus, the final report, containing both components, is expected to be completed by end of the first quarter of 2016. In addition to the PMS, the team also began to design the fourth round of the impact evaluation for PNPM Generasi, which will be implemented in the final quarter of 2016. Together with the MIT’s Abdul Latif Jameel Poverty Action Lab (J-PAL), the team conducted pre-survey qualitative field missions to six villages in four districts across four provinces in the period from June to September 2015. This field mission served a number of purposes, including: (i) developing an improved understanding of existing perceptions of PNPM Generasi among beneficiaries, service providers and other local actors; (ii) developing an

74 | 2015 PSF PROGRESS REPORT

improved understanding of Generasi’s institutionalization and its possible longer-term impacts; (iii) assessing the impact of disruptions to the implementation of the program; and (iv) the pre-pilot testing of survey instrument revisions. To support PSF’s engagement with the implementation of the Village Law, the team is conducting a number of analytical works on topics such as village governance; community empowerment; anti-corruption mechanisms; and data quality check for Dana Desa (village funds) as part of the broader Village Law Support project.. Of note is the Village Governance and Community Empowerment Study (“Sentinel Villages”), which is a mixed-methods longitudinal study that observes the implementation of the Village Law over a two-year period to determine whether the principles of good governance stipulated in the law can be articulated in the management of village resources to benefit communities. Covering five districts in three provinces (Central Java, Jambi, and East Nusa Tenggara), the study will also examine how various community groups respond to the implementation of the Village Law and what key contributing factors are influential. The quantitative analysis is based on surveys of various interrelated actors regarding levels of community participation and perceptions regarding various program elements. To facilitate the implementation of this survey, the team developed nine sets of questionnaires and conducted pre-test sessions this year. The data collection will begin in the first quarter of 2016. The qualitative component of this study utilizes interviews, group discussions and direct observation to monitor key developments related to the implementation of the Village Law in ten villages across the five districts. The team has completed the collection of data for the baseline study, with analysis of this data ongoing. It is expected that the findings of the study will serve as inputs for policy makers and other key stakeholders to adjust policies and programs related to the implementation of the village law and to improve their effectiveness. Another key analytical work is the Accountability Initiative Experiment (qualitative), which attempts to identify factors that enable or constrain good governance practices within communities or local governments. The team conducted a scoping mission in March 2015 in order to explore the feasibility of various anti-corruption tools and to assess the levels of ownership by anti-corruption agencies, including the Corruption Eradication Commission (KPK); the Indonesia Audit Board (BPK); and the Attorney General’s Office. Following the mission, the BPK agreed to test a digit analysis method, which utilizes data from

expenditure reports to analyze whether the reports were doctored. This will assist BPK to systematically analyze expenditure reports from more than 70,000 villages in order to identify potential fraud and/or corruption cases, which can be further investigated through auditing. This will result in improved cost efficiency and the increased effectiveness of auditing through the better targeting of problematic villages. The team will start to collect sample expenditure reports from villages through the Sentinel Villages Study in the first quarter of 2016. The consultants for the digit analysis will conduct the simulation in the second quarter of 2016. Capacity-building activities included the joint implementation of the SUSENAS Consumption Experiment together with the World Bank Research Group; and the Poverty team. These activities are intended to support Indonesia’s National Statistics Agency (BPS) in improving the quality of data related to food consumption and collected through its annual socioeconomic survey (SUSENAS). This year, together with BPS, the team developed questionnaires to be used as a survey tool and conducted pre-test sessions. The data collection will take place in 2016. Finally, to promote knowledge-sharing and information dissemination, throughout 2015, the team issued a series of publications that highlight PSF’s lengthy experience in supporting the implementation of community driven development programs, including a series of policy briefs covering the following topics: (i) Education Services in Rural Indonesia3; (ii) Health Services and Infrastructure Gaps in Indonesia4; (iii) Changes in Village Capacity in One Decade (2001-2012)5; and (iv) Oversight of Village Governance6. In addition, two new study reports have also been disseminated, these being the Beneficiary Assessment of PNPM/RESPEK Rencana Strategis Pembangunan Kampung (Strategic Village Development Plan)7 and the Evaluation of the Village Financial Assistance Program (Bantuan Keuangan Peumakmu Gampong,

3 Policy brief is available at: http://pnpm-support.org/publication/policy-brief01-education-services-rural-indonesia 4 Policy brief is available at: http://pnpm-support.org/publication/policy-brief02-health-service-and-infrastructure-gaps-rural-indonesia 5 Policy brief is available at: http://pnpm-support.org/publication/policy-brief03-changes-village-capacity-one-decade-2001-2012 6 Policy brief is available at: http://pnpm-support.org/publication/policy-brief04-oversight-village-governance 7 Full report is available at: http://pnpm-support.org/publication/beneficiaryassessment-pnpmrespek-rencana-strategis-pembangunan-kampung-village

M&E and Special Studies | 75

BKPG) in Aceh Province8. The team also published a comprehensive Annotated Bibliography that summarizes a collection of articles, evaluations, studies, and other analytic works that reflect lessons learned from fifteen years of research relevant to the Kecamatan Development Program (KDP) and PNPM Mandiri9.

FUTURE PLANS In 2016, the PSF will continue to implement a number of ongoing studies that commenced in 2015. The PNPM Rural Final Evaluation 2012-2015 will be completed in the first quarter of 2016. Results will be presented to the Government by June 2016. The PNPM Generasi fourth round randomized control trial (RCT ) impact evaluation (IE) team will combine panel surveys with qualitative research to gauge the program’s long-term impacts and to determine the potential to utilize Generasi’s incentive model to further support the development of a basic service delivery approach under the Village Law. The PSF will start to collect data in 300 sub-districts from more than 10,000 households of PNPM Generasi beneficiaries. In addition, the PSF will also facilitate the establishment of a Generasi impact evaluation advisory committee which will insist of Government stakeholders and representatives of development partner agencies and which is intended to provide strategic advice and direction. In addition to these major evaluations, the PSF also aims to complete a number of outstanding pipeline commitments by the end of the first quarter of 2016, including the PEKKA Endline Survey (quantitative) and the PNPM Generasi Performance Monitoring Survey (mixed methods). The project’s support for the implementation of the Village Law consists of three main elements, as follows: (i) the Sentinel Villages study team will begin quantitative surveys in early 2016 and will complete the qualitative baseline report early in the second quarter of 2016; (ii) The SMERU Research Institute will continue the ongoing direct observation of the implementation of the Village Law at the village, sub-district, and district levels, and will provide monthly policy briefs and real-time issue updates to PSF and key stakeholders; (iii) The Accountability Initiative will continue its engagement with key stakeholders to

8 Full report is available at: http://pnpm-support.org/publication/evaluationvillage-financial-assistance-program-bantuan-keuangan-peumakmugampong-bkpg 9 Full report is available at: http://pnpm-support.org/publication/15-yearsindonesias-national-community-driven-development-programs-kecamatandevelopment

secure agreement on the various anti-corruption tools to be tested. The team also plans to explore opportunities to work with the National Civil Servant Agency (BKN) to explore the civil servant database in order to discover relationships between the roles, background, and placement of civil servants and the implementation outcomes of various government programs and policies.

LESSONS LEARNED Through the implementation of various analytical exercises in 2015, the PSF has learnt that developing and maintaining relationships with existing and/or new stakeholders is key to ensuring that evidence produced by the team is received well by policymakers. The emergence of various new stakeholders, including the newly-established Ministry of Villages, Disadvantaged Regions and Transmigration (MoV ) and the Ministry of Finance’s Directorate General of Fiscal Balance, creates a need for the team to understand these stakeholders’ ongoing and future agendas and priorities in order to determine further analytic needs. High-quality data is crucial in order to produce both high quality analytical pieces and sound policy advice/inputs. At present, basic data at the village level is collected and managed by different agencies, resulting in significant inconsistencies and differences. Given the limited availability of consistent and reliable basic data, the team will work with the PNPM Rural Task team, the Village Law team, and other stakeholders to develop a village information and M&E system that will reduce challenges related to the validity of data.

76 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS Targets (Cumulative) Result Indicators

Unit of BaseMeasure line

Total Target

2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To provide stakeholders with empirical data regarding the result and impact of PNPM Mandiri; research in greater depth special topics of concern to PNPM and the social development field; enhance the ability of Indonesian social science research organizations to conduct M&E and special studies. Component 1: Monitoring and Evaluation (M&E) activities provide stakeholders with empirical data regarding the result and impact of PNPM Mandiri* 5 additional evaluations disseminated to PNPM Stakeholders

Findings/ evidence from 2012-2013 round of evaluations reviewed as part of PNPM Roadmap process

n/a

n/a

7 additional evaluations** disseminated to PNPM Stakeholders (20122013)

Findings/ evidence from evaluations launched in 2014-2015 reviewed as part of PNPM transition and Village Law implementation process

n/a

n/a

4 evaln/a uations disseminated to PNPM and Village Law Stakeholders***

2 additional evaluations disseminated to PNPM Stakeholders

n/an/a

4 eval3 evaluations uations launched completed (PEKKA, Creative Communities II and PNPM Rural)

n/an/a

1 evaluation disseminated

7 evaluations disseminated to PNPM Stakeholders

2 evaluations disseminated (PEKKA Evaluation & PNPM Rural Final Evaluation) to PNPM and Village Law Stakeholders

1 evaluation (Creative Communities II) completed

- 2 evalu1 evaluation ations completed (Creative Communities II), 1 evaluation in preparation stage (PNPM Generasi IE), 1 evaluation in implementation stage (PNPM Rural Final Evaluation), and 1 evaluation in report finalization stage (PEKKA Evaluation)

n/a

The PNPM/ RESPEK Papua Beneficiary Assessment (qualitative) was published by the end of September 2015. The quantitative component will be published early 2016 Creative Communities II Evaluation has been implemented by Yayasan Kelola (Creative Communities II Grant Recipient)

Component 2: Research in greater depth undertaken regarding special topics of concern to PNPM and the social development field in Indonesia**** New 2014 studies launched (Sentinel Villages/SV, Accountability Initiative/AI, and Disaster Management Support/DMS)

# of n/a studies launched

3 studies launched and completed

n/a

3 studies 1 study launched completed (Disaster Management Support; DMS), 2 studies implemented (Sentinel Villages and Accountability Initiative)

1 study completed (AI)

1 study (DMS) completed

1 study completed (DMS), 2 studies implemented (SV and AI)

On track

n/a

On track

n/a

Component 3: Ability of Indonesian social research organizations to conduct M&E and special studies enhanced***** % of ongoing studies involving Indonesian research institutions

% of studies

n/a

100%

100%

100%

100%

100%

100%

100%

M&E and Special Studies | 77

KEY PERFORMANCE INDICATORS Targets (Cumulative) Result Indicators Support for BPS SUSENAS Consumption Module Simulation conducted

Unit of BaseMeasure line n/a

n/a

Total Target Concept developed, simulation launched and completed, results used by BPS to improve quality of SUSENAS data.

2013 n/a

2014

2015

Concept developed, simulation launched

Simulation completed, results used by BPS to improve quality of SUSENAS data

2016 n/a

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Simulation questionnaires have been developed and tested

Concept Note agreed upon by BPS, simulation questionnaires have been developed and tested.

Difference with cumulative target for 2015 Delay

Comments on progress Simulation Experiment experienced delay due to enumerator recruitment and BPS administrative requirements.

* Indicator 1.3 – “Revised Result Framework (RF) and associated program of evaluations for PNPM Rural 2012-2014” has been removed, since it was completed in 2014 ** Complete list of Analytical Products are available in Annex III of this annual report *** PNPM Generasi Impact Evaluation, Creative Communities Phase II Evaluation (Baseline), PEKKA Evaluation (Endline), and PNPM Rural Evaluation **** Indicator 2.2 – Analytical pipeline for 2013-2014 finalized in consultation with key partners has been removed since it was accomplished in 2014 ***** Indicator 3.2 – Strategy for the capacity-building of Indonesian research institutions endorsed by JMC has been removed since it was accomplished in 2014

78 | 2015 PSF PROGRESS REPORT

WINDOW FOUR

PNPM MANDIRI REVOLVING LOAN FUNDS (RLFS) CAPACITY BUILDING AND SUSTAINABILITY PROJECT

PROJECT RATIONALE AND OVERVIEW This project was closed on April 30, 2015. Its development objective was to support the capacity building, restructuring and institutionalization of the PNPM Revolving Loan Funds (RLFs) scheme, and to strengthen linkages between the PNPM RLFs and the commercial microfinance sector so as to help ensure growth and sustainability in the provision of financial services to the poor. The project worked closely with PNPM stakeholders to test, analyze and promote: (i) capacity building; (ii) linkages between RLFs and bank and non-bank financial institutions; and (iii) enhanced supervision and monitoring activities. The project aimed to support the Government’s endeavors to make PNPM RLFs more transparent and to achieve a level of sustainability that enables them to continue to provide financial services to the poor following the closure of the project. Following testing, project recommendations were expected to be adapted as needed by the Government before the implementation of national RLF reforms planned for 2015. The project designed and tested activities to strengthen RLF operations. Following successful testing, the Government planned to adapt the recommendations according to its requirements to implement reforms to the RLFs on a national scale. The project also provided support for studies, assessments and a legal review to provide strategic inputs for the overall design of the PNPM RLF scheme and related activities. The pilot was implemented with potentially sustainable RLFs in four provinces (DI Yogyakarta, Central Java, West Sumatra, and East Nusa Tenggara). Together, these provinces account for approximately a third of the total value of RLF assets.

SUMMARY INFORMATION Status

Task Team Leader(s)

Executing Agency(ies)

Closed

Safriza Sofyan (ssofyan@ worldbank.org)

PNPM Support Facility (PSF)/World Bank

Start Date to Closing Date January 15, 2010 to April 30, 2015 Geographic Coverage

Approved Budget

Yogyakarta, Central Java, East Nusa Tenggara (NTT ) and West Sumatera

US$ 9,971,956

The value of PNPM financial assets stands at more than US$ 1 billion and are utilized to benefit more than nine million poor households. These funds will continue to be utilized to benefit communities following the closure of the PNPM program.

PROGRESS IN 2015 Towards the end of the project’s closing date, it was making good progress toward meeting its objectives. At the closure of the project, all project components were handed over to the Government in accordance with the established guidelines. Component 1: Capacity Building and Institutionalization: Core training modules developed under the project and finalized with the Government provide the basis for the management of the RLFs in accordance with established good practice for community-based lending organizations. The five modules (induction/orientation; loan management; loan recovery; accounting, including double-entry bookkeeping; and RLF supervision) were delivered to the Financial Services Authority (Otoritas Jasa Keuangan, OJK); the Coordinating Ministry of Human Development and Culture (Kemenko PMK); the Ministry of Home Affairs (MOHA); and the National Planning Agency (Bappenas). In 2015, the project team continued to provide support to develop new legal and governance structures for the future implementation of RLFs, with these structures intended to clarify asset ownership and to enable the establishment of linkages with bank and non-bank financial institutions. Technical and implementation guidelines for the legal transformation of the RLF were

PNPM Mandiri Revolving Loan Funds (RLFs) Capacity Building and Sustainability Project | 79

Legal transformation workshop in Solo, Central Java: Community Development Trust Fund Legal Transformation Workshop in Solo, Central Java held by Bappenas in collaboration with Central Java PNPM UPK Association. (Solo, September 2015)

drafted for the communities to exercise the selection process. The OJK, the Ministry of Cooperatives, and the Ministry of Law and Justice reviewed the guidelines for the transformation of PNPM Urban RLF, while draft guidelines for the transformation of PNPM Rural RLF were delivered to the Ministry of Villages, Disadvantaged Areas, and Transmigration (MOV ) for review. The goals for the program to achieve the legal transformation of PNPM Urban RLFs and associated processes were socialized at well-attended meetings and workshops at the provincial, district, village and sub-village levels. Facilitated by the Ministry of Public Works and local government agencies, ten PNPM Urban pilot communities decided on transition strategies to achieve the legalization of RLF serving their communities. Of the ten RLF, eight will be transformed to become savings and loan cooperatives; one will become a microfinance institution; and one will become a legal association. All are now in the process of finalizing administrative requirements to register the new legal statuses of the entities. A final workshop was held at the end of March 2015, with this workshop involving

discussions with stakeholders related to the process and to share lessons learned and to identify further refinements to the relevant processes and guidelines. Lessons learned from the pilot in urban locations will be shared with the Ministry of Public Works, MOV, Kemenko PMK, Bappenas, and the Provincial Government of Central Java to serve as inputs for implementation in rural locations. In 2015, Bappenas, OJK, and the Ministry of Cooperatives continued to provide support by facilitating legal transformation coaching clinics and workshops in several provinces in Central Java, West Java, Lampung, West Sumatra, DI Yogyakarta and West Java. The participants in the coaching clinics and workshops included representatives of rural Activity Management Units (Unit Pengelola Kegiatan, UPKs) and Inter-Village Coordination Bodies (Badan Kerjasama Antar Desa, BKADs) from various a number of. These events were also intended to disseminate lessons learned from the implementation of PNPM Urban’s legal transformation activities in the ten pilot locations.

80 | 2015 PSF PROGRESS REPORT

Component 2: Bank and Non-bank Linkages: Activities under this component were completed in 2014. The Government’s decision to enable communities to transform RLF into legal entities, together with the improved local administrative processes, opened up options for the development of linkages with the formal sector and for improving the sustainability of the RLFs. The completed study, which mapped existing linkages, case studies, and catalogues, was transferred to the relevant central government agencies. Component 3: Monitoring and Supervision: Ensure continuity after the project ends, UPK staff and community members were trained in how to use, operate and maintain an accounting and payment system; to migrate data to the new system; and to provide technical support through a help desk. Refresher training was provided at all project locations in the period from the end of October 2014 to April 2015. RLF staff in 46 project locations were only able to use a web-based data management prototype until the end of April 2015. During the implementation of the pilot, the project hired a server facility from a Jakarta-based private firm. Originally, it was intended that the MIS data would be transferred to MoHA’s server facility. During the transition and the transfer of the responsibility for the implementation of PNPM Rural to the MOV, it was anticipated that the central server would be placed in that ministry. However, this did not occur because MOV had neither the capacity nor the facilities to manage the server nor the ability to procure the services. Therefore, the MIS data was transferred to Bappenas, with training taking place at the end of April 2015. To date, Bappenas has not yet activated the server and the new MIS has not been operational since the point of closure of the project. The planned impact evaluation study of RLF activities and processes will not be included in the pilot project activities, according to a decision made by the Joint Management Committee (JMC) in December 2014. Crosscutting Policy and Strategy: The project was initially designed in anticipation of a phase-out of direct Government support to the RLFs. However, the Government’s 2015-2019 Medium-Term Development Plan (RPJM) now envisions continuation of this support. Accordingly, the project has supported Bappenas in the development of national strategy to roll out RLF reforms and a draft master plan for a proposed Government-executed Community Development Trust Fund (Dana Amanah Pemberdayaan Masyarakat, DAPM) to

continue building the capacities required to support the sustainability of RLFs.

FUTURE PLANS Bappenas’ future plans for the RLF developed under the PNPM program involve the establishment of a Community Development Trust Fund (CDTF), with a dual socioeconomic mandate to generate profits to support the development of micro-businesses and to improve community welfare through their financing. Micro-loans, the distribution of social assistance, and the development of financial literacy will be the main activities of these CDTFs. Future programs implemented to sustain community financial assets under these CDTFs will focus on the establishment of an appropriate and enabling regulatory and supervisory environment. In order to ensure that these financial assets remain sustainable after the Government ends subsidies in the form of community grants, the Government has initiated CDTFs to form the foundation for sustainable access to finance for low-income households. Developing a strategy to integrate the CDTF with sustainable livelihood activities is vital as a means to strengthen the collective ownership of the CDTF by borrowing groups and communities. Bappenas is in the process of developing a ten-year CDTF master plan that involves two main stages. The first stage (2015-2019) will focus on institutional strengthening through the establishment of the formal legal and governance structure for CDTF operations; on improving MIS and operational capacities; on enhancing CDTF human resources; on developing supervision and communication systems; and on conducting relevant studies and assessments. The second stage (2020-2024) will focus on the achievement of a higher level of sustainability through the restructuring of the CDTF business model and the possible development of a self-regulatory organization. In addition, the Government has now included RLF reforms in its 2015-2019 Medium-Term Development Plan.

LESSONS LEARNED Though good progress was made in all areas, the development objective was perhaps too ambitious, given the state of the political economy and the complex administrative structure for consensus decisions. At the time of the project’s approval, it would have been five years before the anticipated end of direct Government support for the RLFs. However, it was not until

PNPM Mandiri Revolving Loan Funds (RLFs) Capacity Building and Sustainability Project | 81

mid-2013 that implementation accelerated, spurred by the urgent findings of an intra-governmental technical working group. This left little time in which to implement a range of complex tasks. The project suffered from the lack of a government champion to help surmount bottlenecks in stakeholder coordination; to build consensus; and to ensure that high-echelon policymakers were well informed. This particularly affected work on establishing a legal structure for the RLFs early in the project, with this delay in turn disrupting subsequent activities. The transfer of the responsibility for the implementation of PNPM Rural from MOHA to a newly-created ministry without an adequate administrative infrastructure resulted in the loss of smaller, but still important, pieces of work. For example, the web-based data management prototype described in the previous section was not operational after April 2015. RLF pilot project locations can no longer use this prototype, despite its demonstrated usefulness because MIS data was not transferred to the relevant ministry and a new server facility was not activated. Another important lesson learned from the implementation of the project was necessity of securing high-level commitment from key stakeholders regarding the project’s objectives and scope. Throughout most of the period of implementation of the project, key stakeholders continued to hold varying perspectives and opinions regarding the project’s objectives and scope. There was no strong support for the PNPM RLFs project’s exit strategy, for a strategy to phase out poorly-performing RLFs, or for the need to convert all RLFs into legal entities. Any future program would need to ensure a much higher level of commitment, including through the development of the strategy with the active and close collaboration of key Government stakeholders. In addition, the proposed scale-up of RLF reforms by the Government needs an effective inter-governmental agency joint secretariat such as existed in the latter part of the project, with dedicated staff from each participating ministry. The role of local governments should be strengthened to support the further growth of RLFs in such areas as market and product development. As a program rooted in community empowerment and intended to facilitate poverty alleviation, regular supervision by relevant local government agencies should be conducted to monitor the RLFs’ compliance with relevant regulations and to ensure that the RLFs’ mission remains focused on serving the poor while at the same time becoming financially sustainable.

Lastly, it is deemed necessary to embed pilot interventions into long-term planning. The Training of Trainers ( TOT ) program and MIS developed under the project were implemented as a stand-alone pilot project without a clear commitment from key stakeholders for a nationwide roll-out following the implementation of the pilot. Any future project should embed the pilot intervention in a long-term plan that defines the timing, resource requirements and responsibilities for roll-out in the event the pilot project would meet agreed upon requirements. This plan should be prepared and agreed upon before the pilot commences.

82 | 2015 PSF PROGRESS REPORT

KEY PERFORMANCE INDICATORS Targets (Cumulative) Result Indicators

Unit of Measure

Baseline

Total Target

2013

2014

2015

2016

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: The objective of the Project is to support the capacity building, restructuring and institutionalization of the PNPM Revolving Loan Fund scheme and to strengthen linkages between the PNPM RLFs and the commercial microfinance sector so as to help ensure growth and sustainability in the provision of financial services to the poor. Percent increase in # and amount of loans to groups/ members in supported RLFs.

Loans

UPK# UPKRLFs with RLFs increased non-government financial resources.

To be extracted from baseline data after determination of RLFs to be supported by pilot.

Targets to be set in collaboration with PNPM.

0 (all funded from PNPM Block Grants and reflows)

Number targets to be set after linkage discussions with stakeholders.

All project activities Baseline data collectwere finished in April ed. All pilot activi2015. ties (legal, capacity building, MIS, bank linkages) that will improve RLF operations in final stages.

Mapping of linkages between 3,614 RLFs and formal financial sector showed a small number had linkages but no partners were providing financial resources directly to the UPK-RLFs, which requires legal status of RLFs.

There were several financial linkage potentials with few leading banks if RLFs have been transformed into new legal entities.

508 assessments completed in 2011; discussed and disseminated in 2012. Assessments found significant weaknesses in RLF system and are informing stakeholder consultations and RLF project activities.

Need assessment has been completed before 2015

Legal transformation was tested by GOI in 10 urban locations. All ten PNPM urban communities decided to become cooperative and legal association. Draft technical and implementation guidelines for legal transformation were delivered to Ministry of Public Works and Housing, Ministry of Villages.

Legal review completed in 2013 and report issued. Draft technical and implementation guidelines were delivered to relevant line ministries.

The report served as a key input to the Government’s decision to offer 3 legal forms for transformation of UPK RLFs. Technical and implementation guidelines are detail manuals for legal transformation roll out for RLFS rural and urban.

Curriculum and 5 core financial and microfinance training modules were completed and delivered to OJK, Kemenko PMK, Bappenas, and MOHA

Curriculum and 5 core financial and microfinance training modules developed, tested and finalized with Government. 36 Trainers, including 8 Master Trainers, from the PNPM system were trained for rollout to pilot locations and beyond.

Training modules, training methodology, and trainer certification completed and handed over to Government early 2015

Component 1: Capacity Building and Institutionalization # of UPKs with completed sustainability assessments

Assessments

0

507

Legal review to clarify ownership of RLF assets and recommend possible RLF legal structures

Report

0

Legal review completed

RLFs that received high quality microfinance capacity building

# UPKRLFs

0

46

46

PNPM Mandiri Revolving Loan Funds (RLFs) Capacity Building and Sustainability Project | 83

KEY PERFORMANCE INDICATORS Targets (Cumulative) Result Indicators

Unit of Measure

Baseline

Total Target

2013

2014

2015

2016

Difference with cumulative target for 2015

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Reports of existing linkages, case studies, and catalogues were delivered to relevant government agencies including provincial governments

Mapping of 3,614 UPK-RLFs linkages with financial institutions completed in 2012. Report disseminated in July 2013. Report and case studies published with Government endorsement.

Stock taking completed in 2012; report disseminated mid-2013. All studies and catalogues were handed over to Government in early 2015

Baseline established. Stakeholder workshops and discussions on mapping results and way forward held. Collection of 18 practices of linkages ware published and lesson learned discussed at public-private workshops promoting linkages with PNPM. Linkages are dependent on establishing legal entities.

Formal linkages require RLF legal status.

Comments on progress

Component 2: Bank and Non-Bank Financial Institution Linkages Stock take on lessons learned from PNPM RLFs with existing linkages.

Report

# supported RLFs with financial institution linkages.

# RLFs

0

1

Component 3: Monitoring and Supervision System Impact assessment designed

Design

0

1

% of sup- % UPKRLFs ported RLFs with regular, complete and timely performance rating results

0

100%

As more time is required to see outcomes of tested/pilot activities, the Donor and Government have decided during the last JMC meeting in December 2014 that planned evaluation will not be executed now. A comprehensive study will be carried out under the new project implemented by the Government -

-

Prototype RLF monitoring system that supports automated generation of ratings, data integrity and transparency was alive in 46 project locations until end of April 2015

Independent ratings provided for a sample of RLFs. PNPM Rural ratings simplified from 60 to 17 proposed indicators. PNPM stakeholders eventually agreed on much simpler performance/ RLF “health” indicators. Prototype RLF monitoring system supports automated generation of ratings, data integrity and transparency.

Web-based data management prototype was not operational after April 2015

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WINDOW FOUR

VILLAGE LAW SUPPORT (INDONESIA VILLAGE LAW PASA) PROJECT RATIONALE AND OVERVIEW The overall objective of the Village Law Programmatic Advisory Services and Analytics (PASA) Program is to support the Indonesian Government’s efforts to ensure accountable village governance and participatory village development. The program delivers three main types of support: 1) Just-in-Time policy advice and analytics; 2) technical support for the operationalization and implementation of policies and systems; and 3) monitoring and evaluation analytics. The Village Law PASA Program is organized around four programmatic pillars: 1) resource mobilization, allocations and flows; 2) village development governance, accountability and capacity; 3) community empowerment and inclusion; and 4) monitoring, evaluation and thematic studies. The program recognizes that full implementation of the Village Law is a multi-year effort and is therefore structured around a three-year phased engagement strategy: Year 1 (2015): Regulatory Framework, Financial Architecture and PNPM Transition: During the first year, the program will focus on supporting the Government to put in place the national and sub-national regulatory framework and the basic financial architecture or “plumbing”. It will also focus on restructuring key PNPM institutions and developing a simple monitoring framework. Year 2 (2016): Incremental Improvements and Deepening Participation: During the second year, the program will focus on facilitating the achievement of incremental improvements to the national institutional framework and on deepening the level of community participation in village development processes.

SUMMARY INFORMATION Status

Task Team Leaders

Executing Agency(ies)

Active

Samuel Clark (sclark@ worldbank.org)

The World Bank

Start Date to Closing Date

Geographic Coverage

May 1, 2015 to December 31, 2017

National

Approved Budget US$ 6,250,000

Year 3 (2017): Integrity and Decentralized Support Structures: During the third year, the program will focus on strengthening formal accountability channels (such as audit functions) and the design of decentralized support structures to provincial and regional governments. The program’s main Government clients are DJ-PK, Ministry of Finance (MoF) (pillar 1); DJ-Bina Pemdes, Ministry of Home Affairs (MoHA) (pillar 2); DJ-PPMD, the Ministry of Villages (MoV; pillar 3, also pillar 2), Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan(Menko PMK) (Coordinating Ministry for Human Development and Culture), and The National Planning Agency (Bappenas). The program also provides advice to Indonesia Audit Board (BPK), Komisi Pemberantasan Korupsi (KPK) (Corruption Eradication Commission), Badan Pengawasan Keuangan dan Pembangunan (BPKP) (Development and Finance Surveillance Agency) , Tim Nasional Percepatan Penanggulangan Kemiskinan ( TNP2K) (National Team for the Acceleration of Poverty Reduction), and KSP. The Village Law PASA Program is financed from three sources: the PSF Trust Fund; the J4P Trust Fund; and the Bank Budget (BB), with a relatively small contribution from this final source. This report covers only activities financed through the PSF Trust Fund.

PROGRESS IN 2015 In 2015, the program focused on delivering Just In Time (JIT ) analytics and other technical support, and on designing and implementing diagnostic and analytical tools that will provide the empirical base for incremental improvements in Year 2 (2016) and as the foundations for policy and system reforms in Year 2 and Year 3. Table 1-4 provide details of the activities that were originally agreed on in the PSF Funding Proposal in April 2015.

Village Law Support (Indonesia Village Law PASA) | 85

Pillar 1: Resource Mobilization, Allocations and Flows The main objective of this pillar is to provide input to the Government to enable it to determine the best means to mobilize resources to fund the village transfers and to allocate and transfer these funds to maximize economic growth and to reduce poverty and inequality. The Governance GP implements most of the activities in this pillar. In 2015, a good working relationship with DJ-PK was developed and a work plan involving the provision of technical advice, analytics and concept development were agreed for FY16. Table 1 summarizes progress in terms of the activities identified in the initial JMC Proposal in April 2015.

Table 3. Pillar 1 Activities (JMC proposal, April 2015)

No

Activity

Description

Main Client(s)

Status & (Expected Completion)

Pillar 1: Resource Mobilization, Allocations and Flows Equity in Allocation

Analytics and policy advocacy to raise understanding and support for making the DD formula more needs-based.

Internal

2

District and village fiscal impacts

Quantitative analysis and policy advice on managing fiscal shocks of increased district-financed village transfers (ADD).

DJ-PK

3

Development prioritization

Analysis and DJ-PPMD Ongoing (Oct 16) policy advice on national village development priorities and prioritization process

4

Village excellence concept

Technical support to develop village excellence concept of incentivizing districts and villages to use DD effectively.

5

Village Public Expenditure Review ( ViPER)

Support govern- DJ-PK ment to develop DJ-Bina methodology for Pemdes tracking village expenditure, and understanding village-level allocation decisions.

1

DJ-PK

Ongoing (Dec 16)

Consolidated into ViPER (see below)

Complete

Ongoing

The team prioritized two analytical works this year, with the first focusing on the equity implications of the Dana Desa allocation formula, and the second involving a village expenditure analysis. The team prioritized analysis of the Dana Desa allocation formula because of its potential to result in substantial increases to the allocations to medium and large villages which contain an aggregate total of more than 40 million poor and near-poor members of communities. It will also be possible to implement the “hold harmless principle” in the context of increases to the total budget allocation for Dana Desa. The dissemination strategy targeted a number of key stakeholders in order to raise awareness regarding current inequities in the formula and to help build support for change. It delivered modeling results directly to DJ-PK; sought to stimulate public debate by including a section in the World Bank’s Indonesia Economic Quarterly (IEQ) report; and it provided briefings to various government stakeholders. The dissemination of the work resulted in a raised awareness of the issues, although the MoF remains reluctant to change the formula due a perception that this would result in a failure to feel the President’s promise to provide Rp 1 billion to each village. The village expenditure analysis was prioritized because of the enormous demand for data related to the uses to which villages are putting their additional transfers. By the end of 2015, the project team had collected a large sample of village budgets and engaged a firm to lament associated data entry. It is expected that this firm will deliver its results in the first quarter of 2016. In addition to the analytical work, a series of technical meetings were used to develop the village excellence concept, which involves the design of a performance mechanism that would provide incentives to villages to allocate funds for improving services, and to districts for creating and enabling environment for villages. At the end of 2015, the project team presented a proposal to the PSF Joint Management Committee (JMC) for a pilot in 2016 and 2017. Pillar 2: Village Development Governance, Accountability and Capacity The objective of Pillar 2 is to support the Government in its endeavors to establish an accountable and participatory village development cycle that includes transparent financial management and procurement arrangements; opportunities for community participation and oversight; upward accountability; and effective village regulatory functions. Activities under this pillar were specifically intended to support DJ-Bina Pemdes and DJ-PPMD in these areas. Table 2 summarizes progress

86 | 2015 PSF PROGRESS REPORT

Table 4. Pillar 2 Activities (JMC proposal, April 2015)

Description

Status & (Expected Main CompleClient(s) tion)

No

Activity

6

Simplification and harmonization of VFM systems

Analytics and policy advice on simplification of village financial management ( VFM) and procurement

DJ-Bina Pemdes

Ongoing

7

Village audit and oversight

Policy and technical advice on regulatory framework for village oversight and capacity building needs for implementation

DJ-Bina Pemdes BPK BPKP

Ongoing

8

District enabling environment for village development

Legal and technical advice and analytics on the sub-national regulatory framework for village development (allocation, VFM, procurement, prioritization & planning, & authorities).

DJPPMD DJ-Bina Pemdes DJ-PK

Ongoing

on the activities identified in the initial JMC Proposal in April 2015. The PASA program focused on delivering technical support to government stakeholders to enable them to finalize core aspects of the regulatory framework and to deliver capacity building support at the district and village levels. The project team provided technical advice on the design of eight national regulations (including the ministerial regulations on village priorities; village development planning; and village facilitation), and provided technical inputs to inform the design and dissemination of sub-national template regulations to more than 250 districts. Training and capacity building experts also advised the Government on the finalization of core training modules for village officials, with two national workshops delivering hands-on technical support to assist districts to meet disbursement conditions and to understand their role in supporting villages. Support was provided for the simplification of village financial management, as well as village audit and oversight. A technical mission on community participatory auditing was conducted in cooperation with DJ-Bina Pemdes and DJ-PPMD in August 2015. In December 2015, the program finalized work plans with two directorates

for the provision of technical and analytical support to continue this work in the first quarter of 2016.. Pillar 3: Community Empowerment and Inclusion This pillar is intended to support the Government in its development of policies and its provision of support for systems that empower communities and individual community members to participate in the village development cycle and to ensure village institutions are inclusive and create space for marginalized groups. Only modest progress was made in terms of the activities included under this pillar in 2015. In accordance with the program’s phased strategy (see above), the project team emphasized support for the development of core institutional structures and for establishing clear rules of the game. In relation to community empowerment and inclusion, this focused on transitioning the PNPM facilitation structure to support villages to implement the Village Law. Thus, the Village Law PASA Program dedicated considerable resources to support the PNPM Rural Team, which included policy inputs from the team’s legal advisors; technical support to develop facilitator training modules; and JIT analytics, including a national survey of

Table 5. Pillar 3 Activities (JMC proposal, April 2015)

Main Client(s)

Status & (Expected Completion)

No

Activity

Description

9

Social inclusion review of the regulatory framework

Initial analytics and technical support to strengthening inclusion.

10

DJ-PPMD Citizen Technical supfeedback port to establish options a SMS-based citizen feedback mechanism.

11

National and sub-national sectoral linkages

Policy and tech- Menko nical advice on PMK sectoral inputs to the national and sub-national village development prioritization process.

Consolidated into Development Prioritization (see above)

12

Village infrastructure quality

Policy and MoV technical advice on systems to quality control village infrastructure.

On hold

DJ-PPMD

Planned

Dropped (to KOMPAK)

Village Law Support (Indonesia Village Law PASA) | 87

facilitators. Table 3 summarizes progress in terms of the activities identified in the initial JMC Proposal in April 2015. Pillar 4: Monitoring, Evaluation and Thematic Studies The objective of this pillar is to support empirically-based policy making by facilitating the production and dissemination of relevant, high quality data and analysis to inform, influence and guide policy and action. Good progress was made in terms of the activities under this pillar in 2015. Consultations related to the implementation

Table 6. Pillar 4 Activities (JMC proposal, April 2015) Status & (Expected Main CompleClient(s) tion)

No

Activity

Description

13

District and Village Debottlenecking Diagnostic

Annual assessment of core village law systems, including allocation, funds flow, regulatory framework, village utilization and accountability.

Menko PMK

Ongoing

14

Village corruption and accountability

Technical support to develop mechanisms/tools to detect, measure, and mitigate corruption and accountability interventions.

BPK

Ongoing

NEW ACTIVITIES IN 2015

15

Tracking village governance and welfare in national surveys

Support the BPS Government to adjust existing government survey instruments to track the impacts of the Village Law on poverty, welfare and service delivery

Ongoing

16

Local bureaucracy analysis

Support the Government to better understand how local bureaucracy works and what kind of incentives can help improve performance

BKN

Ongoing

Utilizing longitudinal methods, this study aims to better understand decision-making and accountability process at the village level, especially in relation to village development and service delivery.

Menko PMK MoV

17

Village governance and community empowerment study (Sentinel Villages)

of the Sentinel Villages were conducted with government stakeholders, following which internal approval was granted, the local research firm mobilized, and the qualitative and quantitative research teams mobilized. It is anticipated that the study will provide and in-depth analysis of processes, success and challenges on a bi-monthly basis beginning in the first quarter of 2016. The team presented the results of a corruption assessment to government stakeholders and initiated a proof-ofconcept study into the scope for using digit analysis techniques to detect indications of corruption. Modest progress was made in terms of working with BPS to ensure the inclusion of survey questions and modules in SUSENAS and PODES. This work is expected to accelerate in 2016. Solid progress was made in terms of the bureaucracy analysis, a literature review being undertaken; access to an enormously valuable dataset being agreed upon; and a research plan being developed with Badan Kepegawaian Daerah (BKD) (Regional Human Resources Agency). This analytical work will generate insights into local bureaucratic incentives, which are particularly relevant to understanding the important linkages between villages and frontline service delivery units. Table 4 summarizes progress in terms of the activities identified in the initial JMC Proposal in April 2015.

The program strategy was purposively demand-driven in 2015, with the aim being to respond rapidly to requests from the three core ministries responsible for the implementation of the Village Law. Indeed, key government ministries responsible for implementation of the Village Law did not appoint Echelon I, II and III positions until very late in the Government’s fiscal year, with some of these positions not being filled until August. Thus, it was necessary to adopt a flexible approach to client engagement and to adjust the JIT activities to align with the priorities of the new appointees.

FUTURE PLANS Ongoing (Dec 17)

The project team recently completed a Village Law Implementation Scorecard that assessed progress in 2015 in relation to four critical aspects of the Village Law: allocation; disbursement and funds flow to me: planning and spending; and accountability. In relation to each of these aspects, the scorecard assessed the extent to which the policy and regulatory framework was in place; whether implementation systems were designed and operational; and, where data was available, the intermediary outcomes that these policies and systems were generating. The

88 | 2015 PSF PROGRESS REPORT

assessment identified a number of shortcomings and positive achievements, which will help inform how the program is prioritized into the future: Inequity in the allocation formula: The project team’s modeling, briefings to a wide range of government’s officials, and publication of key results in the Indonesia Economic Quarterly (IEQ) has raised awareness about the inequities inherent in the current formula. These consultations with the Government stakeholders have led to a better understanding of the policy debates, although they also suggests that there is a significant need to intensify analytical work on this important topic. Planning and spending on service delivery activities: The findings from the debottlenecking diagnostic support information received from development partners that the regulatory environment, particularly at the district level, is

discouraging villages from allocating and spending funds on activities that will improve service delivery (such as the types of activities that Generasi funds). This issue affects a wide range of activities and it is therefore critical that this problem is resolved through the regulatory revisions planned for 2016. Accountability framework: The assessment demonstrated that very little progress has been made in terms of establishing and implementing key aspects of the accountability regulatory framework and implementation systems. It will be important for the project team to assess how to make progress in this area in 2016. These challenges will be discussed internally and with development partners in early 2016, with any adjustments in activities to be made in the context of the Village Law’s PASA’s Full Program Review, which is planned for March.

Table 7. New and Adjusted Activities Type

Activity

Description

Main Client(s)

Status & (Expected Completion)

Pillar 1: Resource Mobilization, Allocations and Flows ADJ

Equity in Allocation

Based on request, the scope was broadened to include technical support to improve the underlying data used to allocate DD.

DJ-PK

Ongoing (Nov 16)

NEW

National funds flow monitoring

Based on request following a technical mission on the FM reporting systems, additional support to adapt SIKD to monitor DD (and ADD) disbursement was initiated.

DJ-PK

Ongoing (Dec 16)

Pillar 2: Village Development Governance, Accountability and Capacity NEW

Village FMIS

Based on request following a technical mission on the FM reporting systems, additional technical advice to develop and implement a village FMIS.

BPKP DJ-Bina Pemdes

Ongoing

NEW

Regulatory simplification

Based on various requests, additional technical advice to develop and revise national and sub-national implementing regulations as well as hold workshops for sub-national governments. This work is closely coordinated with KOMPAK.

MoV DJ-Bina Pemdes DJ-PK

Ongoing

ADJ

Village Training Technical support to finalize core village government Systems and Tools training modules (continuation of support previously financed from Bank Budget), and to undertake a survey of village capacity.

DJ-Bina Pemdes

Ongoing

DJ-PPMD

Complete

DJ-Bina Pemdes

Planned

Pillar 3: Community Empowerment and Inclusion NEW

Facilitator survey and training assessment

Based on request, a rapid survey of facilitators and assessment of facilitator training was conducted to advocate for mandating PNPM Facilitators to support village law implementation.

Pillar 4: Monitoring, Evaluation & Thematic Studies NEW

M&E capacity building

Initial request to deliver capacity building training on M&E to government officials.

Village Law Support (Indonesia Village Law PASA) | 89

LESSONS LEARNED As outlined in more detail in the results framework, the Program has successfully delivered policy advice to senior government officials; provided technical support to mid-level government staff; and generated and disseminated knowledge to development partners and the public more broadly. The following lessons have the Government been learnt in the implementation of the program in the first year: Internal and External Coordination: Although transaction intensive, the program has invested in both internal program coordination and regular coordination and communication with external government stakeholders and development partners (such as KOMPAK). Internal coordination has helped the project team to capitalize on the linkages between the program’s activities and on linkages with other projects in the PSF’s operational portfolio. Coordination with external stakeholders has been critical to ensuring that the program remains responsive to Government needs and that it avoids duplication with the activities of other government partners. The first year of the Program coincided with the Government’s implementation of the Village Law and with the implementation of other programs such as KOMPAK, which means that coordination was necessarily conducted on an ad hoc basis. It is anticipated that coordination will be more structured in 2016, which will reduce transaction costs involved. The need to bridge policy and technical engagement: A key challenge to a program of this nature, particularly in the first year of implementation, is to deliver both high-level policy advice and in-depth technical inputs. The program has managed to bridge these levels of engagement well, as evidenced by the achievements under Intermediary Outcome No. 2 in the results framework. The lesson from 2015 is that it is vitally important to have key staff members who are directly engaged in both technical discussions and high-level policy dialogue. Comprehensive package of policy and technical advice: From its very beginning, the Program was established as a cross-Global Practice engagement, with a particularly strong relationship between the Governance GP and the Social Development unit of the Social, Urban, and Rural Resilience GP. This collaboration has been essential to delivering a comprehensive package of policy and technical advice to the Government that is particularly well suited to supporting the institutionalization of community development into Government systems. This

has been augmented by programs such as KOMPAK that were able to place large numbers of technical assistants within Government to support implementation. Timeliness is critical for impact: Another lesson from 2015 relates to the importance of timeliness in the delivery of technical and policy advice. The emphasis on JIT activities in Year One and the close coordination with the Government helped to facilitate the delivery of timely support. The ability to deliver this support on-demand in 2015 was also assisted by the availability of technical and policy advice developed within the World Bank Jakarta Office over a decade of providing support for both community development and decentralization.

KEY PERFORMANCE INDICATORS Targets (Cumulative) Result Indicators

Unit of Measure

Baseline

Total Target

2015

2016

2017

-

Delivered in 2015 (only)

Cumulative Progress as of Dec 31, 2015

Difference with cumulative target for 2015

Comments on progress

Project Development Objective: To support the Government’s efforts to ensure accountable village governance and participatory village development. Intermediary Outcome #1: Development financing informed JIT analytics and technical work informs transition of facilitation structure

n/a

No facilitation structure

Facilitation adapts and retains key principle of PNPM

Advice to adapt

Advice to improve

TBD

-

Facilitation survey informed PNPM facilitator role Facilitator training curriculum & modules

n/a

n/a

On track

JIT analytics and technical work informs thinking for possible new operation to support Village Law implementation

n/a

No concept

Design well adapted to new institutional framework

Advice to concept

Inputs to design

TBD

-

Input to presentation on new project concept Development of Village Excellence concept

n/a

n/a

On track

Intermediary Outcome #2: Village Law policy/strategy informed and public debate stimulated # of high-level policy briefings delivered (KSP, VP Office, TNP2K, Menko PMK, Bappenas)

# briefings

n/a

30

10

10

10

-

12 (to KSP, TNP2K, Menko PMK, Bappenas)

n/a

n/a

On track

# of technical briefings delivered to VL implementing agencies (MoF, MoHA, MoV )

# briefings

n/a

35

15

10

10

-

Approx. 20 (DJ-PK, DJ-Bina Pemdes, DJ-PPMD)

n/a

n/a

On track

# of resource meetings for development partners

# present., peer review, updates

n/a

18

6

6

6

-

Approx. 10 (Peer review, workshop presenter, etc.)

n/a

n/a

On track

# of joint technical missions with development partners

# missions

n/a

30

10

10

10

-

15 (various missions with KOMPAK on training modules, capacity assessment & FM reporting)

n/a

n/a

On track

Inclusion of key policy issues in IEQ or similar flagship publication

# contributions

n/a

3

1

1

1

-

1 (Q4 2015 edition on DD formula and disbursement)

n/a

n/a

On track

Intermediary Outcome #3: Client capacity strengthened # implementing regulations informed by policy & technical advice

# regulations

n/a

13

6

7

TBD

-

8 in total 2x PP revisions; 1x PMK revision; 5x Permendes.

n/a

n/a

On track

# of implementing guidelines/modules informed by technical advice

# guidelines, modules, etc.

n/a

12

6

6

TBD

-

11 6x training modules (DJ-Bina Pemdes); 3x training modules (DJ-Bina Pemdes); 2x guidelines (DJ-PPMD).

n/a

n/a

On track

# of joint technical missions with government

# missions

n/a

15

5

5

5

-

6 (DJ-Bina Pemdes, & BPKP)

n/a

n/a

On track

2

2

2

-

4 (Debottlenecking, Sentinel Villages, Facilitator, VACM)

n/a

n/a

On track

Intermediary Outcome #4: Knowledge deepened # JIT quantitative surveys conducted

# surveys

n/a

# technical and/or analytical missions (inc. Jakarta-based and fieldbased)

# missions

n/a

12

4

4

4

-

7 (corruption, FM reporting, bottlenecks, allocation inequity, module pilots, VACM & ViPER, CPA)

n/a

n/a

On track

Facilitated exchange of best practices with client.

# s-s exchanges

n/a

3

1

1

1

-

0

n/a

n/a

S-S exchange to India postponed to 2016.

ANNEXES | 91

ANNEXES

92 | 2015 PSF PROGRESS REPORT

ANNEX ONE: FINANCIAL OVERVIEW In 2015, the PSF continued to respond to the Government’s request for increased financial and technical assistance to support its poverty reduction efforts through the PNPM programs. The Joint Management Committee (JMC) approved US$ 11 million for new activities or additional financing.

PLEDGES AND CONTRIBUTIONS TO THE PSF In 2015, pledges to the PSF remain the same as 2014, US$454 million, as cash contributions increased by roughly 3 percent from US$ 392 million to reach US$ 405 million.

COMMITMENTS With the realization of the project pipeline and topping up of existing activities, the value of JMC approved activities grew from US$ 403 million at the end of 2014 to US$ 414 million at the end of 2015. About 73 percent of the commitments were for Window One activity, namely direct budget support and co-financing.

DISBURSEMENTS A total of US$ 336 million has been disbursed since 2008 out of the received contributions of US$ 405 million, leaving US$ 69 million in balance. In 2015, PSF disbursed US$ 37 million. Government implemented activities, which disbursed US$ 32.5 million, accounted for the largest share (88 percent), followed by the World Bank which disbursed US$ 4.5 million (12 percent). Window One, which provides direct budget support to Government special programs, disbursed US$ 32.7 million in 2014. PNPM Generasi disbursed US$ 26.5 million and accounts for the majority of the disbursements, followed by PNPM Urban in Aceh US$ 5.8 million and Disaster Management Support US$ 0.3 million. Disbursements under Window One are forecasted at US$ 26 million in 2016, with a projected disbursement of US$ 24 million for PNPM Generasi and US$ 2 million for PNPM Urban in Aceh.

Window Two, which provides coordination and implementation support to the Government, disbursed US$ 2.4 million in 2015, a decrease of 72 percent from the previous year. Disbursements under Window Two are forecasted at US$ 2 million in 2016. Window Three, which provides support to Indonesian philanthropies and civil society groups working on poverty reduction at the grassroots level, disbursed US$ 100 thousand in 2015. All projects under window three were closed in 2015. Window Four, which provides technical assistance and M&E services to PNPM, disbursed US$ 2.2 million in 2015. Most of the disbursements were for the TA for PNPM Generasi, PNPM M&E and Special Studies and PNPM Revolving Loan Fund. Disbursements under Window Four are expected to remain strong in 2016 with a projected disbursement of US$ 6 million for the TA for PNPM Generasi, Impact Evaluation of PNPM Generasi (Study), PNPM M&E and Special Studies program and Early Childhood Education and Development (ECED) Frontline – Training and Dissemination and PASA Village Law.

Annex One: Financial Overview | 93

Figure 3. Share of funding by executing agencies

Figure 4. Donors’ contributions (US$ million) CY Contributions Cumulative Contribution

4.9%

22.0%

CSO

WB

405

392

365

259 207 131 90

73.1%

Government

41

23 23 18 2008

Figure 5. Approved commitments (US$ million)

76

2009

2010

2011

106 52

27

2012

2013

12

2014

2015

Figure 6. Total disbursement (US$ million) 404

414

336 299

343 305

246 181

220 122

90 37

42

2008

2009

2

2010

2011

2012

2013

2014

2015

Figure 7. Disbursements Performance (US$ million)

124

54 36

34

59

65

2012

2013

2014

2015

CY 16 Disbursement Plan

26

52 37

28

2

2010

2011

CY 15 Actual Disbursement

7 2009

2010

33

105

97

86

2009

36

Figure 8. CY 15 Disbursement Plan vs CY 14 Actual disbursement (US$ million)

Undisbursed Commitments at Year Start Disbursed Within the Year

99

2008

9

2011

2012

2013

2014

2015

WINDOW 1 Support to Special Program

4

WINDOW 2 Implementation and Coordination Support

0

0

WINDOW 3 On-granting to Indonesian Civil Society

3

6

WINDOW 4 M&E and Special Studies

94 | 2015 PSF PROGRESS REPORT

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 MILLIONS OF US$  RECEIPTS (ACTUAL)

2008

2009

2010

2011

2012

2013

2014

Government of Netherlands

14.67

4.50

0.83

11.90

-

-

-

2015

Total 31.90

Government of Australia

6.20

3.14

14.89

34.09

50.34

78.10

16.40

203.16

Government of Denmark

2.07

4.54

4.27

4.23

-

-

-

15.12

Government of United Kingdom

-

5.63

2.31

-

-

-

-

7.93

European Union

-

-

3.35

1.35

1.26

0.64

-

6.60

Millennium Challenge AccountIndonesia

-

-

-

-

-

22.46

10.89

Government of The United States of America

-

-

64.70

24.81

-

4.85

-

22.95

17.81

90.35

76.38

51.60

106.05

27.30

0.44

0.40

0.34

0.18

0.35

0.33

0.27

0.20

2.51

23.39

18.21

90.69

76.56

51.94

106.39

27.57

12.30

407.04

SUB-TOTAL Investment Income SUB-TOTAL Administration Fee (1%)

12.10

45.45 94.36

12.10

404.53

0.24

0.18

0.91

0.76

0.50

1.06

0.27

0.12

4.05

TOTAL

23.15

18.03

89.78

75.80

51.44

105.33

27.29

12.18

403.00

OPERATIONAL SUMMARY (CUMULATIVE)

2008

2009

2010

2011

2012

2013

2014

2015

Approved Commitments

37.39

42.25

90.27

220.44

305.36

342.80

403.65

414.37

1.84

8.52

36.20

121.84

181.16

246.14

298.52

335.84

35.56

33.73

54.07

98.60

124.19

96.66

105.13

78.53

Disbursements Undisbursed trust funds and grants

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 | 95

WINDOW ONE: DIRECT BUDGET SUPPORT AND CO-FINANCING Approved Commitments 1 PNPM Generasi ( Community CCT ) Scale-up Healthy and Bright Generation 2 PNPM Urban in Aceh 3 PNPM Generasi ( Community CCT ) Scale-up 4 Early Childhood Education and Development (ECED) Services (RETF) 5 PSF Disaster Mgt Support - PNPM Rural (USAID TF071562) 6 PSF Disaster Mgt Support - PNPM Rural (MDTF TF070967) 7 PSF Disaster Mgt Support - Rekompak (MDTF TF070967) 8 PSF Disaster Mgt Support - Rekompak (USAID TF071562) 9 PNPM Green/Renewable Energy 10 Global Financial Crisis Supplement (GFCS) for PNPM Rural (AF) 11 PSF Disaster Mgt Support - PNPM Urban Disbursements 1 PNPM Generasi ( Community CCT ) Scale-up Healthy and Bright Generation 2 PNPM Urban in Aceh 3 PNPM Generasi ( Community CCT ) Scale-up 4 Early Childhood Education and Development (ECED) Services (RETF) 5 PSF Disaster Mgt Support - PNPM Rural (USAID TF071562) 6 PSF Disaster Mgt Support - PNPM Rural (MDTF TF070967) 7 PSF Disaster Mgt Support - Rekompak (MDTF TF070967) 8 PSF Disaster Mgt Support - Rekompak (USAID TF071562) 9 PNPM Green/Renewable Energy 10 Global Financial Crisis Supplement (GFCS) for PNPM Rural (AF) 11 PSF Disaster Mgt Support - PNPM Urban Undisbursed Funds 1 PNPM Generasi ( Community CCT ) Scale-up Healthy and Bright Generation 2 PNPM Urban in Aceh 3 PNPM Generasi ( Community CCT ) Scale-up 4 Early Childhood Education and Development (ECED) Services (RETF) 5 PSF Disaster Mgt Support - PNPM Rural (USAID TF071562) 6 PSF Disaster Mgt Support - PNPM Rural (MDTF TF070967) 7 PSF Disaster Mgt Support - Rekompak (MDTF TF070967) 8 PSF Disaster Mgt Support - Rekompak (USAID TF071562) 9 PNPM Green/Renewable Energy 10 Global Financial Crisis Supplement (GFCS) for PNPM Rural (AF) 11 PSF Disaster Mgt Support - PNPM Urban

2008 16.00 -

2009 16.00 -

2010 2011 2012 2013 2014 2015 44.25 156.88 222.22 216.79 298.39 300.76 31.70 31.70 113.34 119.37

-

-

10.20

24.81 38.32

23.50 73.32

23.50 73.32

23.50 73.32

23.50 67.28

-

-

-

-

-

-

-

2.40

-

-

-

13.90

13.90

13.90

13.90

13.88

-

-

-

0.20

0.20

-

-

-

-

-

-

0.40

0.40

0.40

0.40

0.40

-

-

-

11.10

11.10

11.10

11.05

11.05

16.00 -

16.00 -

34.05 -

34.05 32.70

34.00 32.70

30.68 30.84

30.68 30.84

30.68 30.84

-

1.60 -

19.39 -

1.40 1.40 1.34 1.34 1.34 91.27 130.26 177.15 215.85 248.51 10.78 40.16 72.73

-

-

10.20 -

32.84 -

42.34 -

6.40 72.61 -

14.50 73.32 -

20.30 67.28 -

-

-

-

5.87

11.55

13.00

13.54

13.88

-

-

-

-

-

-

-

-

-

-

-

0.40

0.40

0.40

0.40

0.40

-

-

-

4.85

10.25

11.10

11.05

11.05

-

1.60 -

9.19 -

16.00 30.61

31.68 32.70

30.68 30.84

30.68 30.84

30.68 30.84

16.00 -

14.40 -

35.06 -

0.70 1.35 1.34 1.34 98.45 134.30 112.25 155.86 31.70 20.92 73.18

1.34 52.24 46.64

-

-

10.20 -

24.81 38.32 -

23.50 73.32 -

17.10 73.32 -

9.00 73.32 -

3.20 2.40

-

-

-

8.03

2.35

0.90

0.36

-

-

-

-

0.20

0.20

-

-

-

-

-

-

-

-

-

-

-

-

-

-

6.25

0.85

-

-

-

16.00 -

14.40 -

24.86 -

18.05 2.09

2.32 -

-

-

-

-

-

-

0.70

0.05

-

-

-

96 | 2015 PSF PROGRESS REPORT

WINDOW TWO: MICRO COORDINATION AND SUPERVISORY SUPPORT Approved Commitments 1 2 3 4

PSF Secretariat/Operations Support USAID Program Mgt and Administration PNPM Supervision & Monitoring (Rural) National Community Empowerment Program In Urban Areas For 2012-2014 Supervision 5 Village Training Program (BETF) 6 Village Training Program (RETF) 7 Creative Communities II (BETF) 8 PNPM Field Team Operations (Rural) 9 Pro-Poor Planning and Budgeting 10 Socialization/Dissemination: Communication Strategy 11 MIS/Info Management: Integrated MIS for PNPM Mandiri (Simpadu II) 12 TA Support to Bappenas and Pokja Pengendali PNPM (Kesra) 13 Creative Communities II (RETF) 14 PNPM RESPEK: Barefoot Engineers Training Wave III 15 Barefoot Engineers Training III (BETF) 16 PNPM Community Facilitator Devt Program, Phase III 17 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight 18 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (USAID) 19 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (PNPM Urban) 20 USAID Supervision and Operational 21 PNPM Green Awareness Raising Project 22 Green PNPM Env. Awareness: Pilot Project 23 PNPM Supervision & Monitoring (Urban) 24 PNPM Community Facilitator Devt Program 25 Training of Local Auditor (Inspektorat Kota/Kab) in PNPM Mandiri Perkotaan 2010 26 Policy Workshop Disbursements 1 PSF Secretariat/Operations Support 2 USAID Program Mgt and Administration 3 PNPM Supervision & Monitoring (Rural) 4 National Community Empowerment Program In Urban Areas For 2012-2014 Supervision 5 Village Training Program (BETF) 6 Village Training Program (RETF) 7 Creative Communities II (BETF) 8 PNPM Field Team Operations (Rural) 9 Pro-Poor Planning and Budgeting 10 Socialization/Dissemination: Communication Strategy 11 MIS/Info Management: Integrated MIS for PNPM Mandiri (Simpadu II) 12 TA Support to Bappenas and Pokja Pengendali PNPM (Kesra) 13 Creative Communities II (RETF)

2008 11.95

2009 12.90

2010 19.37

2011 30.31

2012 36.34

2013 50.04

2014 54.58

2015 54.00

3.65 4.00 -

3.65 4.00 -

5.35 6.00 -

5.35 2.89 6.15 -

6.59 2.89 5.12 0.35

8.39 2.89 5.35 0.35

13.94 3.04 7.73 1.86

13.94 3.04 7.80 1.86

2.00

2.00

2.50

1.50 4.35

0.40 1.25 0.27 2.53 1.67 4.35

0.40 1.25 0.27 2.80 1.67 4.35

0.40 1.25 0.34 4.10 1.67 4.35

0.40 1.25 0.34 4.10 1.66 4.32

-

-

0.98

0.98

0.98

0.98

0.98

0.95

-

-

-

1.66

1.66

1.66

3.08

2.99

-

-

-

1.75 1.19 -

0.61 1.75 1.19 -

0.61 4.09 0.07 1.19 6.01

1.92 4.09 0.07 1.19 -

1.59 3.93 0.07 1.19 -

-

-

-

-

-

2.44

-

-

-

-

-

-

-

0.55

-

-

2.30 -

2.30 0.95 -

2.30 0.50 0.95 0.30

0.15 2.30 0.80 0.95 0.30

0.15 0.27 2.30 0.80 0.95 0.29

0.15 0.27 2.30 0.79 0.95 0.29

0.27 2.30 0.79 0.95 0.29

0.27 2.30 0.79 0.95 0.29

0.92 0.60 0.22 -

3.21 1.56 1.29 -

0.50 8.05 2.98 2.65 -

12.87 4.62 0.03 4.09 -

22.78 5.49 0.63 5.19 -

33.08 5.95 1.64 5.73 0.02

41.62 6.20 2.52 6.33 0.56

43.40 6.28 2.97 6.88 0.88

0.11

0.35

1.26

0.15 1.90

0.07 1.89 2.68

0.21 0.25 3.01 0.74 3.72

0.37 0.28 0.30 3.93 1.62 4.30

0.39 0.28 0.34 4.10 1.66 4.32

-

-

-

0.10

0.30

0.61

0.87

0.95

-

-

-

0.11

0.89

1.70

2.84

2.99

-

-

-

-

-

0.60

1.69

1.59

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 | 97

WINDOW TWO: MICRO COORDINATION AND SUPERVISORY SUPPORT 14 PNPM RESPEK: Barefoot Engineers Training Wave III 15 Barefoot Engineers Training III (BETF) 16 PNPM Community Facilitator Devt Program, Phase III 17 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight 18 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (USAID) 19 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (PNPM Urban) 20 USAID Supervision and Operational 21 PNPM Green Awareness Raising Project 22 Green PNPM Env. Awareness: Pilot Project 23 PNPM Supervision & Monitoring (Urban) 24 PNPM Community Facilitator Devt Program 25 Training of Local Auditor (Inspektorat Kota/Kab) in PNPM Mandiri Perkotaan 2010 26 Policy Workshop Undisbursed Funds 1 PSF Secretariat/Operations Support 2 USAID Program Mgt and Administration 3 PNPM Supervision & Monitoring (Rural) 4 National Community Empowerment Program In Urban Areas For 2012-2014 Supervision 5 Village Training Program (BETF) 6 Village Training Program (RETF) 7 Creative Communities II (BETF) 8 PNPM Field Team Operations (Rural) 9 Pro-Poor Planning and Budgeting 10 Socialization/Dissemination: Communication Strategy 11 MIS/Info Management: Integrated MIS for PNPM Mandiri (Simpadu II) 12 TA Support to Bappenas and Pokja Pengendali PNPM (Kesra) 13 Creative Communities II (RETF) 14 PNPM RESPEK: Barefoot Engineers Training Wave III 15 Barefoot Engineers Training III (BETF) 16 PNPM Community Facilitator Devt Program, Phase III 17 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight 18 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (USAID) 19 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (PNPM Urban) 20 USAID Supervision and Operational 21 PNPM Green Awareness Raising Project 22 Green PNPM Env. Awareness: Pilot Project 23 PNPM Supervision & Monitoring (Urban) 24 PNPM Community Facilitator Devt Program 25 Training of Local Auditor (Inspektorat Kota/Kab) in PNPM Mandiri Perkotaan 2010 26 Policy Workshop

2008 -

2009 -

2010 -

2011 -

2012 1.18 0.19 -

2013 3.19 0.01 1.12 -

2014 4.02 0.03 1.19 -

2015 3.93 0.07 1.19 -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.01 -

0.22 0.95 -

0.05 0.59 0.95 0.29

0.15 0.27 1.84 0.78 0.95 0.29

0.27 2.30 0.79 0.95 0.29

0.27 2.30 0.79 0.95 0.29

0.27 2.30 0.79 0.95 0.29

11.03 3.05 3.78 -

9.68 2.09 2.71 -

11.32 2.37 3.35 -

17.59 0.72 2.86 2.06 -

15.52 1.09 2.26 (0.07) 0.35

20.43 2.44 1.25 (0.38) 0.33

17.85 7.74 0.52 1.41 1.30

10.60 7.66 0.06 0.91 0.98

1.89

1.65

1.24

1.50 2.45

0.40 1.25 0.27 2.53 1.67 1.67

0.40 1.25 0.27 2.80 0.92 0.63

0.40 1.25 0.34 4.10 0.05 0.05

0.01 0.97 0.01 0.00 -

-

-

0.98

0.88

0.67

0.37

0.11

-

-

-

-

1.55

0.77

(0.04)

0.25

-

-

-

-

1.75 1.19 -

0.61 0.57 1.00 -

0.01 0.89 0.06 0.07 6.01

0.23 0.07 0.04 0.00 -

-

-

-

-

-

-

2.44

-

-

-

-

-

-

-

0.55

-

-

2.30 -

2.30 0.94 -

2.30 0.28 0.30

0.10 2.30 0.21 0.01

0.46 0.02 0.00

0.15 -

-

-

-

-

0.50

-

-

-

-

-

98 | 2015 PSF PROGRESS REPORT

WINDOW THREE: PNPM AND CIVIL SOCIETY (ON-GRANTING TO INDONESIAN CIVIL SOCIETY) Approved Commitments 1 PNPM Window 3 - PNPM Peduli Phase II 2 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF) 3 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF) 4 PNPM Peduli Executing Organization: Kemitraan 5 PNPM Peduli Executing Organization: Lakpesdam 6 PNPM Peduli Executing Organization: ACE (Assoc for Community Empowerment) 7 PNPM Window 3 - PNPM Peduli Phase I 8 PNPM Window 3 Phase I - PNPM Peduli (Capacity of Philantrophy) 9 PNPM Peduli Phase II - Additional Financing (RETF)

2008 -

2009 -

2010 4.22 -

2011 4.27 0.35 -

2012 11.52 1.56 0.55

2013 29.67 1.56 0.84

2014 11.96 1.56 0.84

2015 10.79 1.56 0.84

-

-

-

-

1.25

0.96

-

-

-

-

-

1.56 0.87 1.28

2.73 1.52 1.97

3.34 1.84 2.46

3.84 2.05 2.37

3.84 2.03 2.37

-

-

0.22 4.00

0.22 -

0.17 1.77

0.17 1.84

0.17 1.14

0.17 -

-

-

-

-

-

15.95

-

-

10 PNPM Peduli Phase II - Additional Financing (BETF)

-

-

-

-

-

0.70

-

-

Disbursements 1 PNPM Window 3 - PNPM Peduli Phase II 2 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF) 3 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF) 4 PNPM Peduli Executing Organization: Kemitraan 5 PNPM Peduli Executing Organization: Lakpesdam 6 PNPM Peduli Executing Organization: ACE (Assoc for Community Empowerment) 7 PNPM Window 3 - PNPM Peduli Phase I 8 PNPM Window 3 Phase I - PNPM Peduli (Capacity of Philantrophy) 9 PNPM Peduli Phase II - Additional Financing (RETF) 10 PNPM Peduli Phase II - Additional Financing (BETF) Undisbursed Funds 1 PNPM Window 3 - PNPM Peduli Phase II 2 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF) 3 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF) 4 PNPM Peduli Executing Organization: Kemitraan 5 PNPM Peduli Executing Organization: Lakpesdam 6 PNPM Peduli Executing Organization: ACE (Assoc for Community Empowerment) 7 PNPM Window 3 - PNPM Peduli Phase I 8 PNPM Window 3 Phase I - PNPM Peduli (Capacity of Philantrophy) 9 PNPM Peduli Phase II - Additional Financing (RETF) 10 PNPM Peduli Phase II - Additional Financing (BETF)

-

-

0.05 -

1.43 0.06 -

6.34 0.67 -

9.03 1.10 -

10.33 1.36 0.56

10.43 1.46 0.58

-

-

-

-

-

0.27

-

-

-

-

-

0.75 0.16 0.29

2.12 1.42 1.97

3.25 1.84 2.41

3.84 2.04 2.37

3.84 2.03 2.37

-

-

0.05 -

0.17 -

0.17 -

0.17 -

0.17 -

0.17 -

-

-

4.17 -

2.84 0.29 -

5.18 0.89 0.55

20.63 0.45 0.84

1.63 0.19 0.28

0.36 0.10 0.26

-

-

-

-

1.25

0.69

-

-

-

-

-

0.81 0.70 0.99

0.62 0.10 -

0.10 0.01 0.05

0.02 -

-

-

-

0.17 4.00

0.05 -

1.77

1.84

1.14

-

-

-

-

-

-

15.95 0.70

-

-

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 | 99

WINDOW FOUR: TECHNICAL ASSISTANCE TO PNPM MANDIRI Approved Commitments 1 TA for PNPM Generasi - CCT 2 PNPM M&E, Special Studies (Incl. Infras Census for Ind villages) 3 Impact Evaluation of PNPM Generasi 4 Susenas CE 5 ECED (Early Childhood Education and Development) Frontline - Training Enhancement and Dissemination 6 ECED (Early Childhood Education and Development) Impact Evaluation, Implementation Support, Monitoring & Evaluation 7 Village Law PAAA Program 8 Village Law PAAA - Governance Sub-tasks 9 Micro Finance Development: PNPM Revolving Loan Fund (RLF) Cap.Bldg. 10 Technical Assistant to KPDT 11 National Community Empowerment Program In Urban Areas For 2012-2014 BETF for Technical Assistance 12 PNPM Green/Renewable Energy ( TA) 13 Local Government Capacity Development ( Training of Loc Gov’t) 14 Delivering Services to Poor Community 15 Poverty Engagement, Knowledge & Action Program 16 ID Urban Pov Analysis, Program Review and Urban Evaluation 17 Increasing Accountability Capacity in PNPM – PNPM Justice Services (BETF) 18 Increasing Accountability Capacity in PNPM – PNPM Justice Services (RETF) 19 Legal Aid and Community Legal Empowerment (RETF) 20 Legal Aid and Community Legal Empowerment (BETF) Disbursements 1 TA for PNPM Generasi - CCT 2 PNPM M&E, Special Studies (Incl. Infras Census for Ind villages) 3 Impact Evaluation of PNPM Generasi 4 Susenas CE 5 ECED (Early Childhood Education and Development) Frontline - Training Enhancement and Dissemination 6 ECED (Early Childhood Education and Development) Impact Evaluation, Implementation Support, Monitoring & Evaluation 7 Village Law PAAA Program 8 Village Law PAAA - Governance Sub-tasks 9 Micro Finance Development: PNPM Revolving Loan Fund (RLF) Cap.Bldg. 10 Technical Assistant to KPDT 11 National Community Empowerment Program In Urban Areas For 2012-2014 BETF for Technical Assistance 12 PNPM Green/Renewable Energy ( TA) 13 Local Government Capacity Development ( Training of Loc Gov’t)

2008 9.44 1.25 5.00

2009 13.35 3.16 5.00

2010 22.44 4.41 6.56

2011 28.97 4.41 9.66

2012 35.28 5.82 9.66

2013 46.30 5.82 14.41

2014 38.72 8.08 14.36

2015 48.82 8.07 12.84

-

-

-

-

-

-

0.05 -

2.02 0.17 1.65

-

-

-

-

-

-

-

1.35

-

-

4.21

8.89

8.89

8.89

9.97

5.15 1.70 9.93

-

-

-

-

0.41 0.96

0.41 0.96

0.41 (0.00)

0.10 (0.00)

2.25 -

2.25 -

2.25 1.43

1.00 1.43

0.74 1.43

0.74 1.43

0.73 1.72

0.73 1.72

0.94 -

0.94 2.00 -

0.94 2.00 0.64

0.94 2.00 0.64

0.77 2.00 0.64

0.77 2.00 0.63

0.77 2.00 0.63

0.77 2.00 0.63

-

-

-

-

1.32

1.32

-

-

-

-

-

-

2.64

2.64

-

-

-

-

-

-

-

4.36

-

-

-

-

-

-

1.93

-

0.92 0.62 0.29

3.70 1.77 1.27

8.71 2.80 3.13

16.26 3.11 6.85

21.78 3.90 8.03

26.87 4.68 9.33

30.72 5.17 10.30

33.51 5.86 11.10

-

-

-

-

-

-

0.01 -

0.04 -

-

-

-

-

-

-

-

-

-

-

0.32

1.97

4.27

6.75

9.30

0.61 0.02 9.93

-

-

-

-

0.02 0.09

0.02 0.26

0.10 (0.00)

0.10 (0.00)

-

0.01 -

0.12 0.00

0.24 0.95

0.55 1.54

0.73 1.72

0.73 1.72

0.73 1.72

100 | 2015 PSF PROGRESS REPORT

WINDOW FOUR: TECHNICAL ASSISTANCE TO PNPM MANDIRI 14 Delivering Services to Poor Community 15 Poverty Engagement, Knowledge & Action Program 16 ID Urban Pov Analysis, Program Review and Urban Evaluation 17 Increasing Accountability Capacity in PNPM – PNPM Justice Services (BETF) 18 Increasing Accountability Capacity in PNPM – PNPM Justice Services (RETF) 19 Legal Aid and Community Legal Empowerment (RETF) 20 Legal Aid and Community Legal Empowerment (BETF) Undisbursed Funds 1 TA for PNPM Generasi - CCT 2 PNPM M&E, Special Studies (Incl. Infras Census for Ind villages) 3 Impact Evaluation of PNPM Generasi 4 Susenas CE 5 ECED (Early Childhood Education and Development) Frontline - Training Enhancement and Dissemination 6 ECED (Early Childhood Education and Development) Impact Evaluation, Implementation Support, Monitoring & Evaluation 7 Village Law PAAA Program 8 Village Law PAAA - Governance Sub-tasks 9 Micro Finance Development: PNPM Revolving Loan Fund (RLF) Cap.Bldg. 10 Technical Assistant to KPDT 11 National Community Empowerment Program In Urban Areas For 2012-2014 BETF for Technical Assistance 12 PNPM Green/Renewable Energy ( TA) 13 Local Government Capacity Development ( Training of Loc Gov’t) 14 Delivering Services to Poor Community 15 Poverty Engagement, Knowledge & Action Program 16 ID Urban Pov Analysis, Program Review and Urban Evaluation 17 Increasing Accountability Capacity in PNPM – PNPM Justice Services (BETF) 18 Increasing Accountability Capacity in PNPM – PNPM Justice Services (RETF) 19 Legal Aid and Community Legal Empowerment (RETF) 20 Legal Aid and Community Legal Empowerment (BETF)

2008 0.00 -

2009 0.30 0.35 -

2010 0.59 1.73 0.00

2011 0.76 2.00 0.39

2012 0.77 2.00 0.63

2013 0.77 2.00 0.63

2014 0.77 2.00 0.63

2015 0.77 2.00 0.63

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

8.53 0.63 4.71

9.65 1.39 3.73

13.73 1.60 3.43

12.71 1.30 2.81

13.50 1.92 1.63

19.43 1.14 5.08

8.00 2.91 4.06

15.32 2.21 1.74

-

-

-

-

-

-

0.04 -

1.98 0.17 1.65

-

-

-

-

-

-

-

1.35

-

-

3.89

6.92

4.62

2.14

0.67

4.54 1.68 -

-

-

-

-

0.40 0.87

0.40 0.70

0.32 0.00

-

2.25 -

2.24 -

2.13 1.43

0.76 0.48

0.19 (0.11)

0.00 (0.29)

-

-

0.94 -

0.64 1.65 -

0.35 0.27 0.64

0.19 0.00 0.25

(0.00) 0.01

-

-

-

-

-

-

-

1.32

1.32

-

-

-

-

-

-

2.64

2.64

-

-

-

-

-

-

-

4.36

-

-

-

-

-

-

-

1.93

-

-

ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009-2014 AND IN 2015 | 101

ANNEX THREE: SUMMARIES OF MAJOR ANALY TICAL WORK CONDUCTED IN 2009-2014 AND IN 2015 Table 8. Completed Evaluations/Studies from 2009-2015 Evaluations/Studies 1 PNPM Rural Impact Evaluation http://www.pnpmsupport.org/publication/ pnpm-rural-impactevaluation-report-2012

Methodology

Main Findings

Quantitative • Real per capita consumption gains of 9.1 % for households in PNPM (propensity Rural areas score matching); • The gains were higher for poor households and poor sub-districts endline 2010 (11.8% and 12.7% respectively) • Households in PNPM areas were 2.1% more likely to move out of poverty • Access to health services increased by 5.1% for households in PNPM areas

2 PNPM Rural Qualitative Qualitative, multi-years Impact Evaluation (2007 and 2010) http://www.pnpmsupport.org/publication/ research-reportqualitative-studyimpact-pnpm-ruraleast-java-west-sumatrasoutheast

• Participation, transparency, and accountability were strong within the program, especially at the sub-district and village levels • PNPM is most effective at reducing poverty and impacting poor households when the needs of the poor are aligned with those of communities

Qualitative 3 PNPM Rural (2010) Marginalized Groups Study http://www.pnpmsupport.org/publication/ marginalized-groupspnpm-rural

• Marginalized groups have limited participation in PNPM meetings, which were still dominated by elites and interest groups • Although facilitation/project procedures have often led to increased participation rates, they has not encouraged active or influential participation of marginalized groups in the development of proposals • Officials and leaders of interest groups (religious and traditional elites) still possess the greatest influence over which proposals are developed and selected, therefore reducing opportunities for marginalized groups to impact decision-making about the use of project resources

4 Village Capacity in Maintaining Infrastructure Study: Evidence from Rural Indonesia http://www. pnpm-support.org/ publication/villagecapacity-maintaininginfrastructure-evidencerural-indonesia

Quantitative (repeated surveys every quarter in a year to capture cyclical income fluctuation, 2010)

• Many communities still found it difficult to maintain existing infrastructure projects • The cost of maintaining infrastructure was up to 2.8 percent of a household’s total consumption - although small, it is likely burdensome for poor households • Although villagers are willing to pay for the maintenance of infrastructure, the amount that communities are willing to pay does not cover all infrastructure maintenance needs • The communities’ willingness to pay is strongly influenced by the direct impact of the infrastructure on individual households and institutional responsiveness, in terms of complaint handling

5 PNPM Generasi Impact Evaluation http://www.pnpmsupport.org/publication/ indonesias-pnpmgenerasi-program-finalimpact-evaluationreport-2011

Quantitative (randomized control trial, baseline 2007, endline 2010)

• Significant impacts on all 12 indicators • The strongest improvements among health indicators were for the frequency of weight checks for young children • The improvement in education indicators was most notable in the increased school participation rate among the primary school-age group • In terms of long-term impact, there was about 10 percent decrease in malnutrition, compared with control areas

6 PNPM Generasi Qualitative Evaluation http://pnpm-support. org/data/pdf/pnpmevaluations/2008/ Qualitativebaseline studyforPNPM GenerasiQualitative ImpactEvaluation %20(1).pdf

Qualitative, multi-years (2007, 2010)

• Communities, village elite, and service providers considered PNPM Generasi more beneficial to maternal child health (MCH) and basic education than other programs — it offered wide variety of aid, accessible to almost everyone, and could complement other existing programs • PNPM Generasi contributed to increased utilization of MCH services through subsidized costs for delivery, transport for pre- and postnatal checks, supplementary foods, and transport to visit health posts. • PNPM Generasi also contributed to a lower level of school dropouts and absenteeism at primary/junior high through provision of various supports (uniform, transport, school equipment, etc.) to lessen the economic burden of the parents

102 | 2015 PSF PROGRESS REPORT

Evaluations/Studies

Methodology

Main Findings

Mixed-methods • All infrastructure samples evaluated were of good to moderate 7 PNPM RESPEK (2011) quality - a significant achievement considering major Infrastructure implementation challenges in Papua and West Papua and Community • 67% of the infrastructure built were utilized by the communities Organization Capacity • PNPM RESPEK improved administrative capacity of local facilitators, Evaluation but not facilitation capacity http://www.pnpmsupport.org/publication/ evaluation-pnpmrespek-villageinfrastructure-andinstitutional-capacity 8 PEKKA Impact Quantitative Evaluation Baseline (2011) Report http://psflibrary.org/ catalog/repository/3715_ PEKKA%20Impact%20 Evaluation%20 Baseline%20Report.pdf

• Female-headed households (HH) have lower subjective welfare, bleaker view of their future, and negative mental state • No differences between female and male-headed HHs in terms of per capita expenditure, access to financial services and government social assistance, and assets • Female-headed households have lower per capita income but the differences disappear after controlling for age and education. This difference persists for the poorest sub- population

9 Perception of Local Governance Study http://psflibrary.org/ catalog/repository/ Governance%20 Review%20of%20 PNPM%20 Rural%202012.pdf

• Local governments generally perceived PNPM (Rural and Urban) as programs with very high participation rate, better transparency and stronger accountability mechanism compared to other programs • Participation is the principle that is most readily adopted by local governments for their own programs. Transparency and accountability, however, are not yet being adopted by most local governments • Most respondents believed that to improve the sustainability and long-term impact of PNPM on poverty reduction, the programs should focus on building the capacity of the community through training, education and mentoring

Qualitative (2010)

Qualitative 10 Rapid Assessment of Women’s Participation (2012) in PNPM http://www.pnpmsupport.org/publication/ pnpm-womensparticipation-studyreport

• Quality of women’s participation was mixed in study areas and is still not maximized • Women’s involvement in the project cycle is still low beyond the initial project stages of socialization and needs assessment • Women’s proposals that are funded are usually infrastructure, rather than e.g., capacity-building and trainings that are requested when the local actors provide a more in-depth analysis of women’s needs • Local initiatives and strategies around women’s participation existed but were yet to be integrated into additional general local decisionmaking processes

Qualitative/ 11 Local Level Action Research Governance Review (2012) http://www.pnpmsupport.org/publication/ governancereview-pnpm-ruralcommunity-levelanalysis-final-report

• The state of local governance in PNPM is mixed: it is still remarkably strong, but faces problems • Participation rates are still mostly high, but the quality of participation has declined in some places • There are weaknesses in transparency and information-sharing: the performance of accountability mechanisms in the program varies, and the incidence of serious corruption is up • Despite these shortcomings, the “foundations” of PNPM are still strong. These foundations, though, are being eroded by serious pressure from “higher-up” problems related to the broader governance environment, changes in the program design, and problems with implementation and management • PNPM must address these program design, implementation, and management issues to avoid undoing its years of good work at the community level

12 Rate of Return Analysis (EIRR) of PNPM-Rural Infrastructure SubProjects http://www.pnpmsupport.org/publication/ laporan-akhir-studiskala-kecil-analisismanfaat-ekonomiproyek-infrastrukturpnpm

Quantitative • Similar to 2005 results ( Torrens, 2005), the EIRR varied among sub(economic projects with a median value of 30 - 50% analysis), small • The average general income multiplier is 1.3 scale study • Sub-projects are generally 25 - 30% cheaper than projects built using in 20 villages typical local government contractors assessing 48 sub-projects using similar methodology as in 2005 exercise

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Methodology

Main Findings

13 Village Infrastructure Census http://www.pnpmsupport.org/publication/ infrastructurecensus-reportinfrastructure-supplyreadiness-indonesiaachievements-and

Evaluations/Studies

Quantitative (village level census) piggybacking on PODES 2011

• Comprehensive data on basic infrastructure availability and quality (including health and education facilities) in nearly all urban and rural villages in Indonesia (over 76,000 villages) • A consistent picture of geographic variation in the supply of basic infrastructure across Indonesia. In general, the island of Java and the province of Bali perform best, while local needs for investment still exist in these regions, and particularly so in the provinces of West Java and Banten • The largest gaps in infrastructure supply-readiness were found in the Papua region, the Maluku islands, NTT, as well as in the interior of Kalimantan • Data has been used to create a supply-readiness index for health and education (to support PNPM Generasi in location selection/targeting). • Further analyses will be done to calculate financing gaps (pending data availability on costs) and to provide more information for PNPMRural in terms of location selection and the allocation of block-grants

14 Local Level Institutions 3 (LLI3) http://www.pnpmsupport.org/publication/ local-level-institutionstudy-3-overviewreport

Mixed-methods • A decade after the last round of LLI, almost half of the villages studied (longitudinal maintained the same local capacity (defined as the ability to solve study, 1st one in common problems collectively), about a third experienced declines 1996 and the in capacity, and a quarter experienced improvements in capacity nd 2 in 2001); • Declines in capacity were mostly attributed to deteriorating access 40 villages in to natural resources, nascent signs of reduced reciprocity, and 3 provinces unresponsive village leaders who did not work in villagers’ interests for HH survey, • On the other hand, increases in capacity were mostly due to villagers’ 20 villages for own efforts to improve their livelihoods, increase control over natural qualitative resources, and sustain mechanisms to ensure that village leaders methods were oriented towards solving collective problems. Reformist officials and external actors (such as NGOs) also contributed to increased problem-solving capacity • More village heads are responsive to villagers’ interests and are more powerful than before; however, strengthening of the village heads’ powers does not translate directly to strengthening local capacity. Additional accountability mechanisms are needed to engender synergy between strengthened village heads and their constituents

Qualitative, 18 15 Integration of villages in 3 Community-based Poverty Reduction provinces Programs at Community Level http://www.pnpmsupport.org/publication/ qualitative-studyproliferation-andintegration-communityempowermentprograms-central)

• Proliferation of programs is largely considered to be beneficial for villagers, with greatest benefit being the availability of additional facilities and improved quality of public services, improved access (transport) and increased incomes, evenly-distributed development, availability of capital and more business opportunities, and improved local community and village government capacities • Integration between empowerment programs is generally not done systematically, usually in the form of sporadic initiatives to synergize programs that have the same targets and beneficiaries to avoid overlap. There are no initiatives at the district level that encourage actors at the village level to synergize by forming programimplementing organizations/institutions • The general model of empowerment program integration in the sample villages is to have just one development plan per village. In this way, empowerment programs no longer make their own development plans in the villages, but follow the plan produced by communities at village development planning meetings • Factors enabling empowerment program integration are: program design that is directed towards integration, which takes the form of program technical operating procedures that are then communicated to all stakeholders; having regulations and institutions/forums that promote and facilitate integration or collaboration between programs; having initiatives to build the quality of village medium term development plans; having a district head and village heads who understand - and are committed to - integration; having civil society groups (NGOs and community leaders in the village) who have knowledge of - and commitment to - improving the effectiveness of village development planning and implementation of empowerment programs; and having the commitment of national and local governments

104 | 2015 PSF PROGRESS REPORT

Evaluations/Studies

Methodology

Main Findings

16 Community Groups Study (report published by Poverty Reduction Support Facility [PRSF]) http://www.pnpmsupport.org/publication/ studi-kelompokmasyarakat-pnpm

Qualitative, 6 villages/urban wards in 5 provinces

• Within the programs, community groups in PNPM Rural and Urban performed well, but almost no spill-over of PNPM principles and processes outside of PNPM, both at the village and kecamatan level (PNPM is seen as merely a project) • Communities’ experience participating in PNPM did not foster collective awareness to demand their governments (esp. village governments) to do the same despite the benefits felt from PNPM • At the village level, power is often concentrated in the hands of village heads and a few elites who dominated PNPM activities (although often with benevolent intent). This power is not balanced with power from other institutions (e.g. BPD) to serve as a control mechanism (checks and balances) • Facilitation - which is key for empowerment programs - is still weak and unable to bridge the gaps between elites and communities in general. Facilitators often too busy with administrative duties and do not have time to engage with communities

17 Bantuan Keuangan Peumakmu Gampong (BKPG) Aceh Evaluation http://psflibrary.org/ catalog/repository/ Evaluations%20of%20 BKPG%20in%20Aceh%20 Province.pdf

Quantitative through cluster sampling method from 600 households (20 households each for 30 villages)

• Bantuan Keuangan Peumakmu Gampong (BKPG) has been successful in producing infrastructure and projects that are perceived to benefit both the village as a whole and those living in close proximity to the project. • Despite the favorable views, 49 percent of respondents did not know which particular projects were funded by BKPG, suggesting that the program’s functioning on a day-to-day basis is less well-known. • In line with other findings from PNPM studies and other literature, results from this study illustrate the difficulty in CDD programs of providing benefits for the whole village, while balancing attention towards the needs of villages’ marginalized groups. Survey respondents perceive that benefits from BKPGs tend to benefit villages as a whole. Respondents do not tend to see poor households and marginalized groups as the beneficiaries of the program. • Gender disparities in BKPG are apparent. Female-headed households are less likely to be aware of, and participate in, BKPG projects. In addition, education levels also influence the quality of participation in BKPG projects. These two variables may account for passive attendance of meetings.

18 The PNPM/RESPEK Papua Beneficiary Assessment (http:// psflibrary.org/catalog/ repository/3906_ Beneficiary%20 Assessment%20of%20 PNPM-RESPEK_ENG.pdf )

Qualitative • Overall, local communities perceived PNPM/RESPEK favorably, seeing through mini it as a development program that actually delivered what had been ethnography in promised. two provinces • Majority of communities from sample villages agreed that they (Papua and had benefited from the program’s sub-projects, especially from West Papua), infrastructure projects. five districts and • There are a number of implementation weaknesses that influenced 20 villages the community’s knowledge and level of participation in PNPM/ RESPEK program, among others: wide geographic spread that limited intensive facilitation; facilitators’ performance that evaluated by administrative indicators; and rigid hierarchical social structure within the community. • Detailed knowledge of the program stages and funding tended to be limited to the elites (e.g. village heads, village secretaries and public figures) and the TPKK, with far less knowledge held by the community in general and women in particular. • Women’s participation was relatively low in PNPM/RESPEK activities in most areas and usually amounted to little more than their passive presence at community meetings. Although present, women tended to remain silent and simply agreed with proposals made by men. • Women who were able to suggest activities were those who had been active in the village, for instance in PKK or church activities. • Limitations on women’s participation in PNPM/RESPEK activities were also determined by: the power relation between men and women, the lack of dedicated space for women, and lack of facilitation specifically for women.

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Table 9.Ongoing Evaluations/Studies: 2015 - 2017

No

Name of Study

Description of Study

Methodology

Expected Timeline for Result

1 PNPM Rural 2012-15 Evaluation

The PNPM Rural Final Evaluation 2012-2015 aims to Quantitative measure the program impacts as guided by PNPM Rural Result Framework 2012-2015. This evaluation covers four key components, namely: (i) Technical Quality of three types of infrastructures (road & bridges, irrigation and clean water supply system); (ii) Economic Impact Analysis; (iii) Beneficiaries Satisfaction; and (iv) Revolving Loan Fund (RLF) Performance and Benefit. Conducted in 150 villages across 12 provinces in Indonesia, this study examines 182 infrastructures and involves more than 3600 households. It is expected that results from this final evaluation will inform PNPM Rural completion stage by the end of 2016.

The final report is expected to be completed by early Q1-2016

2 The PNPM/ RESPEK Survey (via SUSENAS)

Quantitative This survey is part of analytics conducted on PNPM/ RESPEK performance in terms of perceived benefits and implementation of CDD principles of participation, transparency, and accountability. A specific PNPM/RESPEK module was added to the National Socio-economic Survey (SUSENAS) to collect data on awareness, participation, and perceived benefits from over 16,000 households in Papua and West Papua.

The report will be completed approx. March 2016

3 PEKKA Endline Survey

The PEKKA evaluation aims to better understand how PEKKA can reduce poor female-headed households’ marginalization, namely their limited access and control over resources and policies. This study utilizes panel household survey, involving 2,400 households, carried out in 24 villages across four districts. This study also intended to analyze why some groups are successful in implementing the PEKKA program, and why some groups are less successful.

Quantitative

Final report is expected to be ready by end of Q1-2016

4 PNPM Generasi Performance Monitoring Survey

PNPM Generasi Performance Monitoring Survey (PMS) aims to update program performance on 12 main indicators annually. The quantitative component involves more than 1,500 households and 90 )in 23 districts across seven provinces. The qualitative component conducted in four villages in two provinces, aims to identify and analyze what the bottlenecks are throughout PNPM Generasi implementation, as well as to provide suggested recommendations.

Mixed Methods

The quantitative component has been completed in 2015 and the qualitative component is expected to be finalized by end of Q1-2016.

5 Village Governance and Community Empowerment Study (“Sentinel Villages”)

Utilizing longitudinal methods, this study will observe Mixed Methods how the first two years of Village Law implementation affects village governance – whether the principles of good governance (participation, transparency and accountability) can be articulated into managing the village resources in an accountable manner to benefit the general community. This study will also ask how various groups in the community respond to the Village Law implementation and what they key contributing factors are that influence implementation. On the qualitative side, this study is carried out in 10 villages in five districts in three provinces. The quantitative side of this study employs household survey to more than 100 villages in the same provinces.

To be completed by early Q1-2017

6 SUSENAS Consumption Experiment

Together with World Bank Research Group, and the World Bank Poverty Team, the PSF Analytics Team carry out the SUSENAS Consumption Experiment to support Indonesia’s National Statistics Office (BPS) in improving the quality of food-consumption data collected through its annual socioeconomic survey (SUSENAS). This activity will contribute to enhancing BPS’s institutional capacity to provide better quality and more reliable poverty estimate for the Government.

Quantitative

To be completed by end of Q22016

No

Name of Study

Description of Study

Methodology

Mixed Methods 7 PNPM Generasi Utilizing randomized control trial (RCT ) and qualitative Impact methods, this evaluation aims to see PNPM Generasi Evaluation long-term impact as well as potential to adopt its incentive model to support development of basic service delivery approach under the Village Law implementation. This evaluation will utilize panel survey combine with qualitative analysis to better understand how and why the program achieve its impact as well as to find out potential ways to help improve basic service delivery in Village Law implementation. 8 Accountability Initiative

The accountability experiment will focus on elaborating various factors that enable or constrain good governance practice within the community or local government. As part of Village Law Analytical and Advisory Activities (AAA), this exercise will focus on anti-corruption issues in Village Law implementation.

Quantitative

Expected Timeline for Result Data collection to start in Q3 2016

To be completed by Q3-2016