2015 PSF PROGRESS REPORT PNPM SUPPORT FACILITY The core business of the PNPM Support Facility (PSF) is reducing poverty Established 2007: 10 GOI and by supporting the effective leadership and management of the Donor Members 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 2008 2009 2010 2011 2012 2013 2014 2015 Pledges 84.4 84.4 155.8 262.4 300.8 437.6 453.9 453.9 Cash Contributions 23.0 40.8 131.1 207.5 259.1 365.1 392.4 404 Approved Project Commitments 37.4 42.2 90.3 220.4 305.4 342.8 403.7 414 Disbursements 1.8 8.5 36.2 121.8 181.2 246.1 298.5 336 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/ 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 6 PNPM URBAN 16 RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM) 22 WINDOW ONE: SUPPORT TO SPECIAL PROGRAMS 26 PNPM GENERASI 28 PNPM URBAN IN ACEH 36 WINDOW TWO: IMPLEMENTATION AND COORDINATION SUPPORT 40 PNPM RURAL IMPLEMENTATION SUPPORT 42 PNPM COMMUNICATIONS 48 CREATIVE COMMUNITIES II (CCII) 54 VILLAGE TRAINING PROJECT 61 PRO-POOR PLANNING, BUDGETING AND MONITORING (P3BM) 64 PSF SECRETARIAT 68 WINDOW FOUR: M&E AND SPECIAL STUDIES 70 M&E AND SPECIAL STUDIES 72 PNPM MANDIRI REVOLVING LOAN FUNDS (RLFS) CAPACITY BUILDING AND SUSTAINABILITY PROJECT 78 VILLAGE LAW SUPPORT (INDONESIA VILLAGE LAW PASA) 84 ANNEXES 91 ANNEX ONE: FINANCIAL OVERVIEW 92 ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 94 ANNEX THREE: SUMMARIES OF MAJOR ANALY TICAL WORK CONDUCTED IN 2009-2014 AND IN 2015 101 LIST OF TABLES TABLE 1. OUTPUTS AS A RESULT OF THE PROVISION OF WARD GRANTS 18 TABLE 2. INFRASTRUCTURE BUILT TO DATE UNDER RIS PNPM PROJECTS (AS OF DECEMBER 31, 2015) KEY RESULTS (AS OF 30 JUNE 2015) 25 TABLE 3. PILLAR 1 ACTIVITIES (JMC PROPOSAL, APRIL 2015) 85 TABLE 4. PILLAR 2 ACTIVITIES (JMC PROPOSAL, APRIL 2015) 86 TABLE 5. PILLAR 3 ACTIVITIES (JMC PROPOSAL, APRIL 2015) 86 TABLE 6. PILLAR 4 ACTIVITIES (JMC PROPOSAL, APRIL 2015) 87 TABLE 7. NEW AND ADJUSTED ACTIVITIES 88 TABLE 8. COMPLETED EVALUATIONS/STUDIES FROM 2009-2015 101 TABLE 9. ONGOING EVALUATIONS/STUDIES: 2015 - 2017 105 LIST OF FIGURES FIGURE 1. BLOCK GRANT EXPENDITURES ON EDUCATION FY 2015 31 FIGURE 2. BLOCK GRANT EXPENDITURES ON HEALTH FY 2015 31 FIGURE 3. SHARE OF FUNDING BY EXECUTING AGENCIES 93 FIGURE 4. DONORS’ CONTRIBUTIONS 93 FIGURE 5. APPROVED COMMITMENTS 93 FIGURE 6. TOTAL DISBURSEMENT 93 FIGURE 7. DISBURSEMENTS PERFORMANCE 93 FIGURE 8. CY 15 DISBURSEMENT PLAN VS CY 14 ACTUAL DISBURSEMENT 93 vi ABBREVIATION AND ACRONYMS ADB Asian Development Bank APBN Anggaran Pendapatan dan Belanja Negara (District Government Budget) ASA Advisory Services and Analaytics Bappenas Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) BE Barefoot Engineers BETF Bank Executed Trust Fund BGAP Better Governance Action Plan BKAD Badan Kerjasama Antar Desa (Inter-Village Coordination Body) BKM Badan Keswadayaan Masyarakat (Community Organizations) BLM Community Block Grants BNSP Badan Nasional Sertifikasi Profesi (National Board for Professional Certification) BPKP Badan Pengawasan Keuangan dan Pembangunan (Development and Finance Surveillance Agency) BPS Badan Pusat Statistik (Statistics Indonesia) CCII Creative Communities II CDD Community-Driven Development CEP Creative Empowerment Process CHS Complaints Handling System CSO Civil Society Organization CY Calendar Year DFAT Australian Department of Foreign Affairs and Trade DGHS Directorate General of Human Settlements DG-Bina Pemdes Direktoral Jenderal Bina Pemerintah Desa ( The Directorate General of Village Government Oversight, the Ministry of Home Affairs) DG-Bina PPMD Direktorat Jenderal Pembangunan dan Pemberdayaan Masyarakat Desa (Directorate General of Development and Village Community Empowerment, the Ministry of Villages) DG-PMD Direktorat Jenderal Pemberdayaan Masyarakat Desa (Directorate General of Community Empowerment, the Ministry of Home Affairs) DIPA Daftar Isian Pelaksanaan Anggaran (Budget–Funded Project Proposal Lists) DPO Disabled People Organization DRR Disaster Risk Reduction EDFF Economic Development Financing Facility EO Executing Organization ETC Export-Transfer-Load GOI Government of Indonesia ICT Information Communication Technology IDB Islamic Development Bank IKW Regional Poverty Index JIT Just in Time JMC Joint Management Committee KDP Program Pembangunan Kecamatan (Kecamatan Development Program) Kemenko Kesra Kementerian Koordinator Bidang Kesejahteraan Rakyat (Coordinating Ministry for People’s Welfare) KPDT Kementerian Pembangunan Daerah Tertinggal (Ministry of Disadvantaged Areas) KPK Komisi Pemberantasan Korupsi (Corruption Eradication Commission) LGCD Local Government Capacity Development LLI3 Local Level Institutions III PASA Programmatic Analytical Services and Advisory LSP-FPM Lembaga Sertifikasi Profesi–Fasilitator Pemberdayaan Masyarakat (Institute for Professional Certification of Community Facilitators) M&E Monitoring and Evaluation MCA-I Millennium Challenge Account-Indonesia MDTF Multi Donor Trust Fund vii MIS Management Information Systems MoH Ministry of Health MoHA Ministry of Home Affairs (Kementerian Dalam Negeri–Depdagri) MoU Memorandum of Understanding MoV Ministry of Villages, Disadvantaged Areas, and Transmigration MP3EI Master Plan for the Acceleration of Economic Development MP3KI Master Plan for the Acceleration and Expansion of Poverty Reduction MPW Ministry of Public Works (Kementerian Pekerjaan Umum) ND Neighborhood Development NGO Non–Governmental Organization NTB Nusa Tenggara Barat ( West Nusa Tenggara) NTT Nusa Tenggara Timur (East Nusa Tenggara) P2KP Proyek Penanggulangan Kemiskinan di Perkotaan (Urban Poverty Project) P2SPP 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 RPJM-Desa Rencana Pembangunan Jangka Menengah Desa (Mid–Term Village Development Plan) 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 1 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 2016 looks to be another exciting Committee (JMC) of the PNPM Support year. After the first year of Village Law Facility (PSF), I am pleased to present the implementation and with the basic PSF 2015 Progress Report. Throughout systems in place to disburse funds, the year, PSF continued to provide there will be enhanced emphasis on high-quality, coordinated technical ensuring that funds are spent well, assistance, policy and planning advice to reduce poverty and inequality. and targeted financial assistance to the This will include improving the Government of Indonesia (GoI) to reduce government architecture around the poverty and improve service delivery Village Law, deepening participation across Indonesia. and social accountability at the village level, and continuing to The transition from the National Program address constraints in access for Community Empowerment (PNPM) to and delivery of good quality to the Village Law implementation basic services. has brought with it the potential for immense gains in reducing poverty and increasing equality. It has also, I would like to express my sincere thanks to fellow given the significant increase in fiscal transfers and PSF partners in the Coordinating Ministry for Human pressures to government systems, especially during Development and Cultural Affairs, the Ministry of Finance, early implementation of the Law, brought challenges. Bappenas, PNPM and Village Law implementing agencies, The policy support, technical advice, intragovernmental as well as our development partners from Australia, coordination support, and enhanced implementation the United States, the World Bank, and the Millennium support provided by the PSF were extremely helpful in the Challenge Account - Indonesia. 2015 rollout of the Village Law implementation. 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 programs concentrated on wrapping up block grant transition year for PNPM as it began its new role in activities and supporting the transition to Village Law. supporting the Government’s implementation of the The last block grants were distributed to PNPM Rural Village Law. The Government of Indonesia has built communities in 2014, and the World Bank worked with on its success with PNPM across the archipelago in the Government in 2015 to help communities complete strengthening community institutions and their ability remaining activities and close down the program. In to deliver cost-effective infrastructure, and to enhance collaboration with the Government, the remainder of access to social services and economic opportunities by the PNPM Rural V project was formally restructured to institutionalizing PNPM’s principles of community driven support the Government’s efforts to implement the Village development (CDD) in the Village Law and mainstreaming Law. PNPM Urban disbursed their final block grants to them into grass-roots development activities. communities during 2015 and worked to strengthen the local planning processes, including integrating existing The inauguration of the new government at the end of local structures into some Village Law planning processes. 2014 and the clarification of the plans for Village Law The RIS program used the first half of 2015 to complete implementation resulted in some fundamental shifts in documentation and administrative processes for the the program in 2015, including changes in institutional physical projects completed by end-2014. structures and human resources. Under the umbrella of the PNPM Support Facility (PSF), the Government PSF Window One: Support to Special Programs was and its partners have consulted intensely and adapted designed to enable the Government to scale up successful a number of activities in response to the changed projects and test new approaches by taking advantage environment. Overall, the effort has focused on helping of the PNPM platform’s nationwide reach and ability communities complete and account for the remaining to deliver an array of services. Two programs remained core PNPM activities, and supporting the Government’s active in 2015 under this window: PNPM Generasi development of Village law implementation including and PNPM Urban in Aceh. Both programs have been the human resources needed to carry it out in ways that carefully restructuring program activities and processes are consistent with PNPM’s achievements in building to integrate more fully into the Village Law and ensure community capacities, supporting livelihoods, reinforcing their achievements will be sustainable. Implementation good governance and reducing poverty. of PNPM Generasi moved from Ministry of Home Affairs (MOHA) to Ministry of Villages, Disadvantage Areas and This report presents 2015 progress in the PNPM Core Transmigration (MoV ) on January 1st. Activities slowed programs and activities under the three (out of four) until the administrative structures and processes were remaining operational windows. The closing of a range formally established (including the legal ability to pay of pilot projects begun in 2014 continued through 2015, facilitators) while the project was restructured to reflect and the remaining on governmenting projects have been the changed implementation structures for its key health adapting to the new policy and institutional structures. and education delivery programs. The Aceh program continues to be implemented by the Ministry of Public PNPM Mandiri Core Programs include the Rural and Works and will continue through 2016 with an emphasis Urban programs plus the Rural Infrastructure Support on integrating inclusive planning processes as part of the (RIS) program targeting 37 districts in Sumatra. All three transition to the Village Law. 3 PSF Window Two: Implementation and Coordination added a substantial agenda of activities to support the Support finances activities to support PNPM’s oversight implementation of the Village Law, including the Village bodies and implementing agencies, with a view to assist Governance and Community Empowerment Study them to strengthen the program’s core management (“Sentinel Villages”), a mixed-methods longitudinal study systems. This operational structure changed in that observes the implementation of the Village Law over 2015 with the end of the block grants component and a two-year period. The Revolving Loan Funds (RLF) Pilot the Government’s clarification in June 2015 of MOV’s worked with the Government before it closed in April responsibility for village development and community 2015 to test and consolidate the options for legalizing empowerment, and the World Bank worked to align the the RLFs at the local level so they can be integrated into Project’s focus and activities with the new Village Law Village Law management. 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 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@ The Ministry of Villages, worldbank.org) Disadvantaged Areas, and Transmigration (MoV ) Start Date to Closing Date Geographic Coverage 20 May 2008 to 31 December 67,100 villages; 5,300 sub- 2016 districts; 403 districts; 33 provinces Approved Budget US$ 2.5 billion PROJECT RATIONALE AND technical assistance. Up until December 2014, the OVERVIEW program provided block grants directly and transparently Until December 2014, PNPM Rural1 served as the to communities to finance poverty alleviation activities Indonesian Government’s flagship poverty reduction selected from an open menu. Activities were identified and community empowerment program. The program and selected through a gender-inclusive community was implemented by the Ministry of Home Affairs participatory planning process. The program strengthened (MOHA), together with the National State Planning the capacity of national and local governments Agency (Bappenas), the Ministry of Finance (MOF), the and their agencies to partner with civil society and PNPM Mandiri Steering Committee (Pokja Pengendali), community-based organizations in order to improve the and other government agencies. The program’s delivery of basic services. development objectives are for villagers in PNPM Rural locations to benefit from improved local governance and PNPM Rural was intended to be a nationwide program and socio-economic conditions. The program empowered has expanded rapidly since its launch, currently covering villages and communities to identify and implement more than 67,000 villages across Indonesia. The average cost-effective, pro-poor, and productivity-enhancing annual budget of the program in the period from 2009 to village infrastructure sub-projects. The activities included 2014 is US$ 1.03 billion, including state, provincial and the construction of infrastructure, revolving loan funds district budgets and loan funds, with the proportion of the (RLFs), and training activities, with all of these activities latter averaging at 35 percent of the total for PNPM Rural supported by an extensive facilitation network. (2008-2014). While the Government provides the vast majority of the funding for the project, the World Bank PNPM Rural has been supported by consecutive has continued to contribute to the financing of PNPM World Bank loans since its predecessor program, the Rural through the PNPM Rural 2012-2015 (US$650 million). Kecamatan Development Project, was first implemented Following the promulgation of the Village Law in 2014, in 2008. Additional grant funding for pilot programs the process of phasing out the PNPM program began are provided by the Governments of Australia and the in 2015, with the new Law now providing the legal United States of America and the Millennium Challenge framework for community development programming. Account-Indonesia through a Government and While the objectives of the Village Law are similar to Multi-Donor Support Facility known as the PNPM Support the development objectives of PNPM Rural, the new Facility (PSF). Law poses significant new challenges, in terms of both scope and scale, as it involves the comprehensive The program involves three main components, as follows: institutionalization of the principles of community-driven (i) the provision of block grants for investment in physical development into government structures down to the infrastructure, to facilitate revolving loan funds, and to village level. In June 2015, the Project was restructured in deliver training activities; (ii) community empowerment accordance with the Government’s decision to transfer the and facilitation; and (iii) implementation support and mandate for matters related to village development and community empowerment from Ministry of Home Affairs 1 Program Nasional Pemberdayaan Masyarakat Mandiri Perdesaan (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 Support and Technical Assistance) that were suspended and activities with the new Village Law and associated at the beginning of January 2015 due to the program’s regulations. The PNPM Rural project’s closing date was transition under the Village Law, have recommenced. As therefore extended from December 31, 2015 to December of July 1, some 10,500 former PNPM facilitators (about 31, 2016, in order to give the Government additional time 84% of the total number) were reinstated by the MOV; to complete PNPM closure activities and to manage the the project’s National Secretariat was established; and transition to the new context created by the Village Law. new management oversight and technical assistance arrangements in the form of 10 Administrative Service Firm (ASF) contracts were re-procured and awarded in PROGRESS IN 2015 November 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 CLOSURE PNPM sub-district Activity Management Units (UPKs). Overall, good progress is being made in terms of the After some initial delays following the program’s activities required to facilitate the closure of PNPM restructuring in June 2015, the program continued to Rural. Project reports show that 98 percent of villages make steady progress towards the achievement of its have handed over all infrastructure sub-projects to development objective. Key actions have been taken by communities in accordance with the established MOV to implement PNPM closure activities and to bring handover guidelines, or Musyawarah Desa Serah Terima previously-suspended Components 1 and 2 back on track. (MDTS) requirements. The remaining two percent of villages are spread across 28 provinces, with the rate of The final results for activities completed under progress towards completion currently ranging from Component 1 are now being evaluated. Key activities 99 percent to 77 percent. Lagging provinces such as North under Component 2 (Community Empowerment Kalimantan and North Sulawesi may require additional and Facilitation) and Component 3 (Implementation assistance to ensure that all sub-projects are closed and PNPM Rural | 9 handed over in compliance with the program’s closure beneficiaries remains on target at just over 50 percent. guidelines. Local governments are helping to ensure that Furthermore, Bank supervision missions have consistently the closure activities are executed appropriately, with the confirmed beneficiary satisfaction levels percent in terms formulation of appropriate inventories of all of PNPM’s of the prioritization and quality of infrastructure financed assets by the facilitators. However, the following key risks under Component 1 at levels higher than the target may affect MOV’s capacity to successfully complete the projections of 80 percent. However, the lack of routine closure of the PNPM program by the end of 2015: reporting on the program’s IRIs is a cause for concern, zz A third of all provinces have a facilitator vacancy since this needs to be completed before the program rate in excess of 20 percent, with some sub-districts evaluation can be finalized. reporting vacancy rates as high as 40 percent. These high vacancy rates may impede the implementation of closure activities; VILLAGE LAW TRANSITION zz In several provinces, undisbursed block grants Nationwide implementation of the Village Law began in (BLM) and operational funds (Dana Operasional January 2015, the beginning of the Government’s fiscal Kegiatan/DOK) balances remain idle in Sub-District year. However, overall progress has been slow. While the Activity Management Unit (UPK) accounts, and disbursement of funds began in April, systems for the outstanding RLF funds exist. While MOV has reported provision of mandated technical assistance to villages are that all RLF balances have been validated, a policy not yet fully operational; socialization of the Law at the on how sub-districts should deal with these village level and training of the village government account balances and outstanding balances has officials and facilitators has been delayed; and there are not been finalized, thereby putting funds at risk and still gaps in the sub-national regulatory framework. All of further delaying the financial and administrative these factors are continuing to affect the implementation arrangements related to the closure of PNPM. There of the Law at the local and village levels. is an urgent need for Bappenas, MOV and PMK to work together to prepare a Ministerial Regulation to The new institutional arrangements are complex, with the ensure RLF balances are prudently handed over to situation further exacerbated by a lack of coordination communities and to legitimize the legal status of the between ministries to manage the implementation of the RLF ; Law. The Government, through Presidential Regulation zz According to data obtained from 17 provinces, No. 12/2015, has assigned the mandate for village 2,583 fraud and corruption cases involving funds to a development and community empowerment activities to total value of Rp 113.9 billion remain unresolved. the MOV. However, according to Presidential Regulation zz 1,400 of 1,915 previous BPKP Audit findings amounting No. 11/2015, the MOHA is still responsible for managing to Rp 60.46 billion needs to be refunded to the State village government affairs. At the same time, MOF Treasury; and remains responsible for fiscal transfers, while Bappenas zz The Project’s Intermediary Results Indicators (IRIs) (and indirectly, individual sectoral ministries and district need to be updated and the annual report for and village governments) is responsible for improved 2015 compiled and submitted to the World Bank service delivery. To address issues related to sub-optimal for verification. coordination, the Government has established the PNPM Acceleration and Termination and Village Surveys to verify the program’s final outcome values are Law Coordination and Implementation Teams, chaired now being conducted. However, as of November 2015, by the Kementerian Koordinator Bidang Pembangunan the MOV reported that the program has already achieved Manusia dan Kebudayaan (Coordinating Ministry for or exceeded three of six targets defined in terms of Human Development and Culture). However, the level of the Project Development Objective (PDO)-level results coordination, policy integration, and oversight still needs indicators. Since 2012, project reports demonstrate a to be improved. steady increase in the number of community members involved in participatory and democratic forums for planning, implementing and overseeing development FUTURE PLANS activities to more than 3.8 million (against a target of Revised Facilitation Structure: Throughout 2016, 3 million). These reports also indicate that the number additional facilitators will be recruited and provided with of project beneficiaries has increased from 25 million pre-service training under the Village Law. The increase to 25.7 million and that the percentage of women in the number of facilitators in 2016 is required because 10 | 2015 PSF PROGRESS REPORT the Village Law mandates an expansion of coverage coordination meetings; research and civil-society to approximately 1,100 more sub-districts than those engagement; the development of a Management involved in PNPM. In addition, additional resources are Information System (MIS) for facilitation monitoring and being invested at the local level to meet the need for reporting; and, possibly, for the payment of salaries to the deployment of village facilitators (pendamping lokal village facilitators, subject to an agreement being reached desa, PLDs), a newly-created position. The new facilitation on the terms and conditions of their engagement. 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 LESSONS LEARNED involves direct, routine interaction between facilitators Lessons from PNPM Rural provide valuable insights that and communities to address concerns, participation, may inform the implementation of the Village Law: transparency, and accountability issues at the village level. In addition, there will be four to six district facilitators The quality and coverage of facilitation in the field (tenaga ahli pemberdayaan, TAPDs) in each district; and at is critical for successful program implementation, least two village facilitators in each sub-district, of whom playing a vital role in issues ranging from information one must be a qualified engineer. There is a need to dissemination, community mobilization, and the provision recruit approximately 21,000 village facilitators. With the of technical and monitoring support. While the roles and delays to the recruitment of the remaining facilitators, the responsibilities of facilitators need to be redefined in the achievement of projected recruitment targets (and targets context of the implementation of the Village Law, with the related to their attendant training needs) appears to be provision of the necessary capacity-building support, the challenging. However, it is still feasible for MOV to resolve allocation and placement of facilitators will need to take these challenges if it commences with the recruitment into account geographical and population factors in order process as soon as possible. The first tranche disbursement to increase implementation effectiveness. Under PNPM of the annual Dana Desa does not begin until April 1 of Rural, the facilitation system was already coming under each year, which gives the MOV limited time to hire and significant strains, with some facilitators reporting that carry out the pre-service training that is required. they spent more than 50 percent of their time traveling to remote locations. 2016 Budget and Work Plan: On October 28, 2015, the MOV’s total budget for 2016 was confirmed at Rp The recruitment of high-quality, competent facilitators 8.7 trillion, inclusive of Rp 1.8 trillion (US$130 million) is just as important as allocating the right number of of World Bank funding. This falls significantly short of facilitators to each location. However, a balance needs MOV’s expected needs. The MOV’s budget estimate to be sought between the number and the quality of for the funding required to deploy facilitators alone in facilitators, especially in remote locations in areas such 2016 is Rp 2.7 trillion (US$190 million), including the as Papua, where the identification and recruitment of funding required for the deployment of the village technical facilitators with appropriate qualifications has facilitators. This estimate covers facilitators’ remuneration been challenging. In such cases, recruiting candidates and allowances and the costs for their selection, with a lower level of qualifications and providing mobilization-demobilization, and operational expenses, these candidates with additional pre-service training but not for their training. To meet the costs associated and mentoring by more experienced facilitators at with training, the ongoing World Bank Loan has sufficient the sub-district and district levels may help to bridge remaining funds (Rp 1.3 trillion, or US$95 million), these gaps. which could augment the Rp 1.8 trillion budget for 2016. It has been agreed that the Rp 1.8 trillion budget and Loan balance would be utilized to finance the contracting of administrative service firms and to provide technical assistance to develop new management arrangements within MOV to support Village Law community empowerment activities, including the payment of facilitator salaries; the provision of training for facilitators; the implementation of socialization activities; the provision of training for community-based institutions and civil society organizations; provincial-level PNPM Rural | 11 KEY PERFORMANCE INDICATORS Result Unit of Base- Total Targets(Cumulative) Delivered Cumulative Differ- Comments on Indicators Measure line Target in 2015 Progress as ence progress (only) of Dec 31, with cu- 2013 2014 2015 2016 2015 mulative target for 2015 Project Development Objective: For villagers in PNPM-Rural locations to benefit from improved local governance and socio-economic condi- tions Households Percentage - 80% 80% 80% 80% 80% n/a n/a n/a Economic im- have low-cost pact simulation access to evaluation infrastructure ongoing. Result or services will be available selected by the by the end of community March 2016 Communities Number 2.27 3 million 2.27 2.5 3 mil- 3 mil- 3.87 mil- 3.87 million +0.87 are involved in million million million lion lion lion million participatory and demo- cratic forums for planning, implementing and overseeing initiatives that directly address local develop- ment priorities Projects funded Amount - 10% in- 10% 10% 10% 10% n/a n/a n/a Baseline not pre- by PNPM pro- (USD) crease at viously tracked vide economic the end systematically benefits (direct of project or compiled. and indirect) (not in Economic im- for community US$) pact simulation members evaluation ongoing. Results will be available by June 2016 Beneficiaries Percentage - 80% 80% 80% 80% 80% n/a n/a n/a Baseline not pre- feel project viously tracked investments systematically reflect their or compiled. needs Economic im- pact simulation evaluation ongoing. Result will be available by June 2016 Direct project Number 30 30 million 30 mil- 30 30 30 2.57 mil- 2.57 million -0.5 Based on beneficiaries million lion million million million lion million the MoHA’s quarterly report of December 2014. Verified by PROTAN system (project’s data- base). Shortfall attributed to delays in receiv- ing data from the field. Change in pro- Percentage - 10% 10% 10% 10% 10% n/a n/a n/a Baseline not pre- ductivity and/ viously tracked or lower cost of systematically access or compiled. Economic im- pact simulation evaluation ongoing. Result will be available by June2016 Cost savings Percentage 56% 35% 35% 35% 35% 35% 20% 20% -15 over regular procurement Female benefi- Percentage 48% 50% 50% 50% 50% 50% 50.40% 50.40% +0.40% ciaries 12 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Result Unit of Base- Total Targets(Cumulative) Delivered Cumulative Differ- Comments on Indicators Measure line Target in 2015 Progress as ence progress (only) of Dec 31, with cu- 2013 2014 2015 2016 2015 mulative target for 2015 Local-level Number 1.17 1.20 1.20 1.20 1.20 1.20 n/a n/a n/a Economic im- multipliers pact simulation evaluation ongoing. Result will be available by June 2016. Component 1: Kecamatan Grants % of poor Percentage 45% 45% 45% 45% 45% 45% 51.40% 51.40% +6.40% community members who participate in planning, deci- sion-making % of partici- Percentage 50% 50% 50% 50% 50% 50% 49.7% 49.7% -0.3 pants in plan- ning and de- cision-making meetings who are women > 85% of work Percentage 85% 90% 90% 90% 90% 90% 99% 99% +9% plans com- pleted in one program cycle (18 months> 85% of work plans com- pleted in one program cycle (18 months % of infrastruc- Percentage 67% 80% 75% 80% 80% 80% 79% 79% -1 No further up- ture works of dates received high quality since September 2014 so results retained. How- ever, this result will be verified by the Project’s final evaluation, which will be completed by June 2016. % of infrastruc- Percentage - 90% 90% 90% 90% 90% 96% 96% +6 No further up- ture works dates received utilized by since September community 2014 so result members retained. Data obtained from village infra- structure utiliza- tion monitoring report (forms 28, 66, 67 1-J ) Sub-projects Percentage 85% 85% 85% 85% 85% 85% 84% 84% -1 As per National for which O&M Management arrangements Consultant involving (NMC) QPR community for end of members are September established and 2014, so results functional retained. Data obtained from maintenance Team Quality Monitoring Report (Forms 28, 66, 67 1-j) PNPM Rural | 13 KEY PERFORMANCE INDICATORS Result Unit of Base- Total Targets(Cumulative) Delivered Cumulative Differ- Comments on Indicators Measure line Target in 2015 Progress as ence progress (only) of Dec 31, with cu- 2013 2014 2015 2016 2015 mulative target for 2015 % of RLF Percentage 5% 10% 5% 7.5% 10% 10% 9.10% 9.1% +1.6 No further up- groups that dates received are evaluated since Septem- as mature/ ber 2014 so ready to be results retained. channeled to Data obtained regular financial from UPK special institutions. report. Component 2: Community Empowerment and Facilitation % of districts Percentage - 30% 10% 20% 30% 30% 50% 50% +30 that link their progress reports to the local govern- ment’s website % of villages Percentage 60% 70% 65% 70% 70% 70% 3% 3% -67% No further up- which are as- dates received sisted to review since September their mid-term 2014, so results village develop- retained. Data ment plans. obtained from Village Medium Term Develop- ment Plan draft- ing assistance report. % of BP-UPK Percentage 60% 65% 60% 65% 65% 65% 73% 73% 8% No further up- that conducted dates received audit minimum since September once a year. 2014 so results retained. Data obtained from Report on the Number of BP- UPK Conducting Annual Audits and District Fa- cilitator/Faskab report on Moni- toring results of BP-UPK Audit. % of BKAD Percentage 40% 50% 45% 50% 50% 50% 88% 88% +38 No further up- that conduct dates received supervision and since September M&E 2014 so results retained. Data obtained from Report on Num- ber of Badan Kerjasama Antar Desa (BKADs) Conducting Supervision and Monitoring. Report on Mon- itoring results of the District Facilitator/ Faskab Team on Supervision and Monitoring. % of villages Percentage 50% 60% 55% 60% 60% 60% 72% 72% +8 No further up- with a function- dates received al community since Septem- oversight team ber 2014 so results retained. Data obtained from Report on Results of Evalu- ation Team 18. 14 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Result Unit of Base- Total Targets(Cumulative) Delivered Cumulative Differ- Comments on Indicators Measure line Target in 2015 Progress as ence progress (only) of Dec 31, with cu- 2013 2014 2015 2016 2015 mulative target for 2015 % of members Percentage 30% 30% 30% 30% 30% 30% 32% 32% +2 No further up- of the commu- dates received nity oversight since Septem- team who are ber 2014 so women result retained. Data obtained from report on Results of Evalu- ation Team 18. % of villages Percentage 70% 80% 75% 80% 80% 80% 87% 87% +7 No further up- with updated dates received information since September boards 2014. So results retained. Data obtained from Special Report by Information, Education and Communication (IEC) team. # of SPP group Number - 13400 13000 13500 13500 13400 9206 9206 -4294 No further up- funded dates received since September 2014 so results retained. Data obtained from UPK Special Report % of UPKs that Percentage 60% 70% 65% 70% 70% 70% 57% 57% -17 Result slightly are evaluated adjusted/cor- as healthy rected from administratively June 2015 and financially report but no for RLF further updates received since September 2014. Data ob- tained from UPK Special Report % of Non Per- Percentage 23% 12% 23% 18% 12% 12% 34% 34% +22 Result slightly forming Loans adjusted/cor- (Collectability rected from 2-5) June 2015 report but no further updates received since September 2014. Data ob- tained from UPK Special Report. Component 3: Implementation Support and Technical Assistance % of corruption Percentage 40% 50% 40% 45% 45% 50% 29% 29% -16 Based on cases that are MOHA’s QPR of resolved December 2014. Verified by Com- plaints Handling System Monthly Report (Form 7). % of sub-dis- Percentage 20% 20% 20% 20% 20% 20% 29.90% 29.9% -9.9 Based on BPKP tricts audited Audit Report each year and and Internal for which the Audit. Audit results are reports are also published. published on the Govern- ment’s website. PNPM Rural | 15 KEY PERFORMANCE INDICATORS Result Unit of Base- Total Targets(Cumulative) Delivered Cumulative Differ- Comments on Indicators Measure line Target in 2015 Progress as ence progress (only) of Dec 31, with cu- 2013 2014 2015 2016 2015 mulative target for 2015 % of provinces Percentage 70% 90% 90% 90% 90% 90% 100% 100% +10% No further up- that provide dates received complete since Septem- monthly re- ber 2014. Data ports in timely obtained from manner Report on Pro- vincial 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 The Directorate General (gsoraya@worldbank. of Human Settlements org) (DGHS), The Ministry Evi Hermirasari of Public Works and (ehermirasari@ Housing worldbank.org) Start Date to Closing Date Geographic Coverage PNPM Urban 2012-2015: March 1, 10,924 urban wards in 2013 to December 31, 2016 268 cities/districts Approved Budget US$ 708 million PROJECT RATIONALE The project consists of four main components, as AND OVERVIEW follows: (i) Capacity Building for Communities and Local The development objective of PNPM Urban is to Governments: This component involves the provision of ensure that the urban poor benefit from improved training to build community capacities and of support socio-economic and local governance conditions. This for workshops and facilitation for staff of Community objective is achieved by: (i) facilitating the formation and Organizations (Badan Keswadayaan Masyarakat, BKM) institutionalization of elected representative organizations and revolving loan funds (RLFs); (ii) Kelurahan Grants: that are accountable to communities; (ii) providing This component involves the provision of grants to grants directly to communities to transparently finance participating kelurahan to co-finance sub-projects poverty-reduction activities, especially the development identified through participatory community development of infrastructure services; (iii) enhancing the capacity of planning processes; (iii) Implementation Support and central and local governments to engage in partnerships Technical Assistance: This component provides support to with community organizations to provide infrastructure build the capacities of staff of Program Management Units and other services; and (iv) raising awareness of measures (PMUs) and other community groups and to implement to mitigate disaster-related risks and mainstreaming monitoring and evaluation activities; (iv) Contingency for measures to achieve resilience in the face of such risks. Disaster Response: This component provides funding to support and implement rapid response measures in the The Urban Poverty Project (UPP), the predecessor to the context of disasters, emergencies and/or catastrophic PNPM Urban program, was established in 1999 in the events by facilitating the rapid reallocation of loan funds context of the economic collapse at the time to facilitate in the case of such events. the rapid, direct transfer of resources to poor members of urban communities. In August 2006, on the basis of These components support the implementation of the UPP’s demonstrated success in achieving its development PNPM Urban regular program in 11,000 wards, with each objective, the Government took the decision to scale up of these wards receiving ward grants ranging in value the program to achieve nationwide coverage through from Rp 50-200 million annually. In addition, a number of a single community-driven poverty reduction program. special programs have been implemented under PNPM On the basis of this decision, PNPM Urban was first Urban, including the Neighborhood Development (ND) implemented in 2008. Since then, the program’s coverage program; the Sustainable Urban Livelihoods program; a has been expanded to reach 11,000 wards in urban community-based disaster risk management program; areas, directly benefiting approximately 26.7 million and the Selaras Program, a gender mainstreaming program individuals. The total value of funding for the PNPM Urban in Aceh. program in the period from its inception to 2012 stood at approximately US$ 1 billion. The program is funded The Neighborhood Development Program: The ND through the Indonesian Government’s own funds and program focuses on upgrading urban facilities to benefit through loans provided by the World Bank and the Islamic the poor at the neighborhood level. This program utilized Development Bank. a combination of programmatic (involving three-year PNPM Urban | 17 Riverbank upgrading in Pekalongan, Central Java plans); integrative (involving a package of investments, of revolving loans funds under PNPM Urban. Under such as housing, drainage systems, and roads); and spatial the Livelihoods program, special facilitators have been (using evidence-based urban planning) approaches. This assigned to facilitate livelihoods activities amongst program resulted in a significant increase in the average community groups. value of ward grants, from Rp 50-200 million under PNPM Urban to Rp 1 billion under ND. The program underwent The Disaster Risk Management program: As of a process of rapid expansion, with coverage increasing May 2013, this program was piloted in 26 wards in from 18 wards in 2007 to 785 wards in 2015. Since 2014, six disaster-prone cities, these being Padang, Bandar the ND program has focused on upgrading slum areas in Lampung, Manado, Gresik, Surabaya, and Sidoarjo. The large cities and metropolitan regions across the country program aims to build the capacities and to increase by providing funds to develop tertiary (or neighborhood the awareness of local governments and communities level) infrastructure and to raise community awareness on matters related to disaster risk mitigation and to regarding the importance of a safe, comfortable and mainstream measures to build resilience. The pilot also healthy living environment. provides funding for sub-projects to mitigate disaster risks, including risks related to fire and flash floods, in The Sustainable Urban Livelihoods Program: This several cities. program has been piloted in 56 wards across 14 cities. The program focuses on enabling livelihoods by providing The Selaras Program in Aceh: This program covers support to community groups to participate in training 426 villages in 12 districts/cities across the province related to household financial management, micro-credit of Aceh. In the period from 2013 to 2014, the program management and micro-business entrepreneurship. focused on developing a gender responsive approach Amongst other benefits, this program was intended to to community planning within the core PNPM Urban address identified weaknesses in the implementation program. During this period, each participating village 18 | 2015 PSF PROGRESS REPORT received funds to a value of Rp 150 million per year In 2015, the program implemented measures to to finance the operational costs of BKMs, community strengthen cooperation between central and local training, and infrastructure and social investments. governments and between communities and non-government sectors, with district governments working in collaboration with community stakeholders PROGRESS IN 2015 to prioritize investments for implementation in selected All grants under the PNPM Urban program have been wards. This initiative is expected to develop a higher level fully disbursed, with these funds fully utilized by the of synergy in the area of the planning and programming end of the year in 10,924 wards. In 2015, PNPM Urban of investments to support the implementation of city focused exclusively on the disbursement and utilization and ward-level slum alleviation programs. The program of grants and on the assessment of infrastructure quality. developed collaborative mechanisms to strengthen Community-level activities, such as the election of BKMs, the role of local governments. In addition to the criteria community meetings, and reporting of implementation established by PMU, local governments develop their own results, continued throughout the year. A number of BKMs criteria to select slum areas eligible to receive grants. A have played a significant role in the implementation of the number of local governments expressed their willingness new Village Law. For example, in Aceh and Central Java, to integrate this process into the RPJMD. BKMs have been included as part of the Village Planning Team (Tim Perumus RPJM Desa), with the three-year Neighborhood Development (ND) poverty reduction plans prepared by BKM at the ward In total, 785 wards received grants under the ND program level (PJM Pronangkis) being widely used as a reference for in the period from 2007 to 2015. During 2015, activities the development of the mid-term village development implemented under this program were still ongoing in plan (RPJM Desa) mandated under the Village Law. approximately 500 wards. Ward grants to a total value of approximately US$ 5 million were allocated to support The following table 6 describes the outputs as a result of activities in participating wards. In total, funds to a value the provision of ward grants: 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 Table 1. Outputs as a result of the provision of ward grants supply (49,000 m), sewerage channels (33,000 m), and waste disposal facilities (11,800 unit). As a result of the PNPM Type of in- UPP Urban PNPM implementation of this program, local governments frastructure (1999- (2008- Urban Total increased their level of involvement and modified sub-project 2007) 2014) (2015*) PNPM community settlement plan (CSP) to address slum issues. km of roads 13,132 15,534 3,704 19,238 A portion of the funding provided under this program km of bridges 97 71 - 71 were utilized to develop economic and social facilities, km of irrigation 168 303 - 303 including education and health facilities, and public space. channels On average, communities and local governments have # safe drinking 55,787 176,246 - 176,246 water contributed to approximately 15 percent the total cost # public toilets 34,745 109,295 41,156 150,451 of the investments implemented under this program. and washing While the project generated significant benefits, the facilities need for improvements were noted in a number of areas, # electricity 20,966 51,534 18,302 69,836 including the level of participation of women and poor # market facilities 280 98,368 - 98,368 members of communities; the level of commitment of built/rehabilitated local government; the quality of CSP; and the prioritization # solid waste and 32,621 22,607 5,752 28,356 sanitation facilities of investments. # houses rehabili- 47,029 92,935 31,551 124,486 tated(poorest) The Sustainable Urban km of drainage 4,459 5,203 1,265 6,468 Livelihoods pilot system This pilot is being implemented in 56 wards in 14 cities. In 2015, approximately 142 community groups were Source: Management Information System (MIS) of PNPM Urban (www.p2kp.org) established, with the combined membership of these * Data as per September 30, 2015 groups amounting to 1,600, with 87 percent of these PNPM Urban | 19 members being women. The targets in terms of the by optimizing certain elements of the PNPM Urban project’s KPIs had been achieved by the end of the year, Program. Through the National Mid-term Development including targets related to the holding of regular group Plan 2015-2019, the Ministry of Public Works and Housing meetings, the attendance rate at these meetings, the level has made a commitment to improving conditions in of regular savings, and bookkeeping practices. Community approximately 38,431 hectares of slum areas across the groups in around 40 wards have started to conduct country. The NSU’s overall development objective is internal lending within these groups, utilizing their saving to improve access to urban infrastructure and services in and project funds. targeted slums by 2019. This slum alleviation program will build on the structures developed under the PNPM Urban The SELARAS Program in Aceh program and the experiences of this program to support In 2015, funds to a value of approximately US$ 9 million its implementation. were disbursed, of which approximately 70 percent had been utilized by the end of the year. Satisfactory To prepare for the implementation of this program, a results were achieved in the area of levels of women’s nation-wide slum profiling exercise commenced in participation in the community meetings (83%); the September 2015. The profiling process was conducted level of involvement of women in decision making, in approximately 11,067 urban wards, with this as determined through the activity levels of women process involving the gathering of data related to the as gender focal points (65%); proportion of women socio-economic conditions of households and land and members of community planning teams (55%), and the housing status; with classification of slum areas based proportion of women serving as leaders of community on seven criteria, these being access to roads; access to groups (54%). Approximately 95 percent of the grants clean water; access to sanitation facilities; access to solid disbursed under the Selaras program have been utilized waste disposal facilities; availability of drainage; quality for the development of infrastructure subprojects, with of housing; and the existence of fire protection facilities. the remaining 5 percent utilized to fund social activities, The results of the slum profiling exercise can be accessed including the provision of support for the delivery of through the PNPM Urban website (www.p2kp.org). 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. FUTURE PLANS In 2016, the following activities will be implemented under Community Based Disaster Risk Management (DRM) the PNPM Urban program: The DRM pilot was implemented in six cities and 26 wards. zz Training on operations and maintenance will be The GFDRR grant was closed on 31 December 2015, provided to PNPM Urban facilitators and consultants with the implementation of the project completed at by the end of the first semester of 2016; that point. The technical guidelines, training modules zz Complete overhaul of MIS data will be implemented and materials to build the capacities of facilitators on by the end of June 2016; issues related to DRM have been made available for zz Studies and evaluations on project outcomes, implementation in other locations. Good results were including gender and disaster studies, will be achieved in terms of building awareness of issues completed by December 2016; related to DRM and providing funding for investments zz Remaining ward-level ND grants will be utilized, and sub-projects intended to mitigate disaster CSP will be reviewed, and studies related to the risks. Challenges were identified in the area of the implementation of ND will be completed by mainstreaming of the CB-DRM to PJM/RPLP, particularly December 2016; in locations without significant experience in disaster zz Advanced facilitation will continue to be provided management and with a high turnover rate for facilitators. to support the implementation of the livelihoods pilot activities, including through improvements Support preparation of the National to guidelines and the provision of capacity Slum Upgrading (NSU) Program building materials; In response to a request from the Government, the zz A final report on the community-based DRM pilot will World Bank has extended the closure date for the PNPM be conducted and a mechanism for mainstreaming Urban project (Ln-8213) from December 31, 2015 to the pilots approach in PNPM Urban locations will be December 31, 2016, with this extension intended to developed by June 2016; support the transition to the Government’s NSU program zz Support to prepare for the implementation of NSUP 20 | 2015 PSF PROGRESS REPORT in 154 cities will continue to be provided, especially capacity building activities need to be tailored to meet through the provision of assistance to develop Slum the specific needs of different local governments. Improvement Action Plans (SIAPs); the provision of support to build the capacities of local government It was found that members of community group received agencies and community groups; and the provision of significant benefits from their participation in livelihoods technical assistance. pilots to provide training in matters related to household financial management (savings and credit); to improve access to microloans; and to manage group dynamics. LESSONS LEARNED However, it was also found that improvements need to Throughout the period in which it was implemented, be made in a number of areas, including in strengthening PNPM Urban and its predecessor program, UPP, have been the involvement of facilitators and community volunteers demonstrated to be an effective and efficient means in KSM (Kelompok Swadaya Masyarakat, community to build and/or improve tertiary (neighborhood-level) beneficiary group) meetings; engaging private infrastructure. Under PNPM Urban, a number of advanced institutions and/or civil society organizations to provide interventions have been implemented to address complex skills/vocational training and facilitate micro-business urban problems, such as slum alleviation and disaster development for group members; and facilitating linkages management, through programs such as ND and the to markets and optimizing internal resources within community-based disaster risk management program. groups or communities. 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, PNPM Urban | 21 KEY PERFORMANCE INDICATORS Targets (Cumulative) Differ- Cumu- ence with Deliv- lative cumu- ered in Progress lative Result Unit of Base- Total 2015 as of Dec target for Comments on Indicators Measure line Target 2012 2013 2014 2015 (only) 31, 2015 2015 progress Project Development Objective: To ensure that poor benefit from improved socio-economic and local governance conditions. Improved access to infra- # of kelu- - - - 4,080 - To be provided at structure, economic and so- rahan 4,080 - Not yet n/a the revised project cial services in at least 80% due closing kelurahan (wards) in 2013 Min 80% satisfaction levels % of kelu- - > 80% - - - > 80% - Not yet n/a To be provided at from beneficiaries regarding rahan due the revised project improved services and local closing level governance Infrastructure built is at least # of kelu- - 4,080 - - 4,080 4,080 - 33,7% less n/a 20% less expensive than rahan expensive that built by non-commu- in 5,965 nity based approaches in at kelurah- least 80% of participating ans* kelurahan Min 90% of complaints are % of com- - 90% > 90% > 90% > 90% > 90% 99% 99% +9% resolved plaints Component 1: (a). Organized community groups have a process for raising concerns and developing Community Development Plans. (b). Local gov- ernments deliver improved services to the urban poor Min. 40% participation rate % of 39% >40% >40% >40% >40% >40% 47% 47% +7% of the poorest and vulner- poorest/ (PNPM able community members vulner- Urban in planning and decision able in I) making meetings meetings Min. 40% participation rate % of 42% >40% >40% >40% >40% >40% 44% 44% +4% of women in planning and women in (PNPM decision making meetings meetings Urban I) Min. 30% of the adult % of 38% > 30% > 30% > 30% > 30% > 30% 31% 31% +1% population voting in BKM voters (PNPM elections at the neighbor- Urban hood level I) Min. 80% of local govern- % of LGs > 75% > 80% > 80% > 80% > 80% N/A 81% 92% +12% ments provide cost-sharing with a minimum of 20% cost-sharing Component 2: Communities receive improved access to infrastructure based on Community Development Plans Number of each type infra- % of kelu- > 80% > 80% 3,500 4,080 4,335 4,335 86% 6,141 +14% Total kelurahans structure, economic, and rahans (70%) (80%) (85%) (85%) (99%) assisted: 6617 Kelu- social activities completed with com- rahan in at least 80% (kelurahan pleted wards) infrastruc- ture Min. 70% of infrastructure % of 70% > 70% > 70% > 70% > 70% > 70% 96% 96% +26% The number in the works evaluated as of good works left column is cal- quality culated from 97% of certified infrastruc- ture Percentage of kelurahans % of kelu- 34% > 50% > 35% > 40% > 50% > 50% 26.6% 26.6% -23.4% The target has not with revolving loan funds rahan been achieved due (RLFs) having a portfolio at to a Lack of clear risk (PAR) ratio > 90% days work plans to ad- of < 10% minister RLFs, as well as insufficient Local Government support Component 3: Consultants provide technical assistance and implementation support to the project 90% of oversight consul- % of OCs > 70% 90% > 90% > 90% > 90% > 90% 98% 98% +8% tants (Ocs) providing timely & accurate data trough MIS % of BKMs with completed % of > 70% 70% > 70% > 80% > 90% N/A 99.6% 99% +9% annual financial audits BKMs * 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 SUMMARY INFORMATION Status Task Team Leaders Executing Agency(ies) INFRASTRUCTURE RIS PNPM III: Siti Hasanah (shasanah@ adb.org) The Directorate General of Human Settlements (DGHS), The Ministry of SUPPORT TO Closed Start Date to Public Works and Housing PNPM MANDIRI Closing Date Geographic Coverage November 15, 2011 600 villages in 37 districts in South to June 30, 2015 Sumatra, Lampung, Riau and Jambi (RIS PNPM) 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 Riau Eas Islands Kalima of Indonesia’s core poverty reduction program, Riau PNPM Mandiri. The RIS PNPM project applies a West Kalimantan community-driven development approach that empowers communities and strengthens their Jambi Bangka Central West Belitung Kalimantan capacities to prioritize, design, implement, and monitor Sumatera community-based projects through community South Sumatera facilitation and development grants. Jakarta Bengkulu South Special Kalimant District Lampung Central Although Indonesia had successfully reduced the overall Java rate of incidence of poverty to about 14.2 percent by Banten 2009, this rate is still disproportionately high in rural areas, West Java Bali where about two-thirds of Indonesia’s poor live. The Yogyakarta East proximate causes of rural poverty include limited access to Java Special such basic services such as health, education, clean water District W N and sanitation facilities, capital, and infrastructure. Ten The project was established to contribute to poverty the provision of community development block grants; reduction, particularly in rural areas, through the and (iii) improving the Government’s capacity for project provision of improved infrastructure. This was in line with implementation and for monitoring and evaluation (M&E). the Government’s mediumterm development plans, which emphasized the need to increase investments in infrastructure generally, and in rural infrastructure in PROGRESS IN 2015 particular. In line with the objective of the PNPM Mandiri In 2015, the main focus of the project was the completion program, the project was intended to reduce poverty of administrative work associated with the closure and to improve local governance in rural communities of the project, such as the preparation of withdrawal in project areas. The expected outcome was improved applications, reports, audits, and other similar instruments. access to service delivery and basic rural infrastructure All physical works implemented under the project were for the poor, the near-poor, and women in the project’s completed by the end of 2014. target communities. To produce these outcomes, the projects had three main components: (i) strengthening Overall, in the period since the project commenced in capacity for community planning and development; (ii) 2012, it provided support to 1,140 villages. improving village services and infrastructure through At the point of closure of the project on June 30, 2015, 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 The block grants resulted in tangible improvements to facilities having been handed over to communities to the level of access to basic infrastructure services for operate and maintain. Overall, about US$ 39.6 million the poor, near-poor, and women in the project villages. in loan proceeds and Rp. 2.5 billion (about US$192,000) The construction and upgrading of roads, pathways, and of national government funds (Anggaran Pendapatan bridges improved the overall business conditions for dan Belanja Negara, APBN) had been disbursed to informal entrepreneurs (including food-stall owners, small finance these community investment grants in the restaurants, and small shops) and farmers. Improved roads period from 2008 to 2014. More than 1,420 km of rural also provided easier and safer access for residents to their roads; 1,900 bridges, 330 water supply facilities; 15 km places of work (including rice fields, and rubber and palm of water pipe; 186 sanitation facilities; 169 km drainage oil plantations), contributing to reduced transportation channels; 12 km irrigation channels; 40 boat landing costs generally and to improved access to local markets facilities; and two mini dams had been constructed to deliver goods and services and to buy products, and to and/or rehabilitated. Construction works had generated schools and health centers. Improved drainage systems short-term employment opportunities of about contributed to reduced damage and losses from flooding. 137,000 person-months for community members in Additional economic benefits included improved public participating villages. Approximately 78 percent of the health outcomes and reduced per capita costs for health total value of the block grants had been used to finance care and medical treatment due to the greater coverage the construction of transport facilities; 18 percent for of sanitation services and improved access to safe sanitation; 3 percent for water supply; and 1 percent for drinking water; greater income-generating opportunities irrigation facilities. A survey conducted in September through improved essential infrastructure; and the 2015 suggested that 95 percent of beneficiaries believed short-term employment opportunities resulting from the that the built infrastructure was in good condition and construction of village infrastructure. fully utilized. 24 | 2015 PSF PROGRESS REPORT Information board at Village Sinar Pasemah, Kabupaten Lampung Selatan, Lampung Overall, the quality of civil works observed during the implementation processes in their own districts. Through field visits was deemed to be satisfactory. Approximately these interactions, village communities established 360,000 households (approximately 1.4 million people) good networking relations with district officials, with benefitted from the project (exceeding the target of these relations enabling the communities to channel 0.6 million people). Of the households that benefited, their interests and ideas to the district administration approximately 200,000 were classified as poor households. into the future. On the whole, the project promoted good governance through: (i) transparent planning, Active community participation in the preparation of procurement, disbursement, and implementation based upgrading and investment plans and in the construction on jointly-agreed upon procedures; (ii) well-defined of infrastructure contributed to strengthening good institutional arrangements; and (iii) transparent governance and local capacities for community planning mechanisms for transferring investment funds to and development. Involvement in the preparation of the community-managed bank accounts. The impact Mid-term Poverty Reduction plans, annual investment evaluation report (December 2015) suggested that plans, and Operations & Maintenance (O&M) documents the majority of village residents were satisfied with the developed village residents’ skills. This will create ongoing delivery of services by local governments. benefits, as these skills can be utilised in the future for the planning, designing, implementing, operating, and maintenance of other community-level projects. FUTURE PLANS Interactions between community members and district The Asian Development Bank (ADB) and the Government officials throughout the project enabled village residents are continuing to engage in intensive dialogue regarding to better understand the development planning and future cooperation in the rural infrastructure sector. Rural Infrastructure Support to PNPM Mandiri (RIS PNPM) | 25 LESSONS LEARNED of this nature, it is imperative to harness the convening The project generated a number of lessons learned power of local governments to facilitate the sustainability that may inform the design and implementation similar of projects through prudent O&M arrangements. community-driven development projects implemented in Thus, future projects should consider including local the future. These lessons include the following: governments in covenants, lending agreements, other implementation activities, and possible contributions to Infrastructure projects funded by community block grants funding community O&M. are solely owned and represented by the community implementation groups and Operations & Maintenance In addition to a good selection process, performance (O&M) Groups (Kelompok Pemanfaat dan Pemelihara, evaluations of facilitators are also key to ensuring KPPs) in all villages. As a result, these particular assets high-quality facilitation. Although the project utilizes a have not been recorded in local governments’ assets facilitator performance-evaluation mechanism through lists. As an unintended result of this, this relieves local district and provincial project implementation units, governments of the responsibility to allocate funds for community members who work directly with facilitators future maintenance or repairs. Performance evaluations on a daily basis need to be provided with channels of the KPPs by the village heads and beneficiaries was through which they may provide feedback to enable the mostly positive, with an example including a September assessment of facilitators’ performance at the field level. 2015 survey that showed that more than 70 percent of KPPs were very active or active. Nevertheless, KPPs’ A number of community members have indicated that reported cash balances tend be very low. Since this there is a need for better communication with the means that O&M activities will require either contributions project’s facilitators. During field missions, it was observed from beneficiaries and/or outside support, this raises the that facilitators were frequently unreachable by phone question of whether burdening communities with the and other channels, which caused understandable responsibility for O&M is the best way to safeguard the frustrations for beneficiaries. As a result, the team learned long-term sustainability of the project. that face-to-face discussions with facilitators, rather than text message conversations, are communities’ most In addition to KPP funding issues, it was found that the effective and preferred method of dialogue. In light of sustainability of the project’s infrastructure investments this finding, programs such as RIS PNPM should provide is often compromised because community members do accountability structures where beneficiaries can openly not have a complete understanding of the importance evaluate the communicativeness and accessibility of of O&M arrangements. Moreover, facilitators often leave the facilitators assigned to the projects with which they infrastructure sub-projects soon after they are completed, are involved. which also limits the emphasis on O&M. For programs 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 Unit 355 458 93 906 Reservoirs Wells Unit 75 1,168 1,537 2,780 Water Supply Pipelines Km 50 48 113 211 Communal Sanitation Unit 1,820 521 2,527 4,868 Facilities 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 Directorate of Basic (rwrobel@worldbank. Social Services (Direktorat org) Pelayanan Sosial Dasar, PSD), Directorate-General of Village Community Empowerment and Development (Direktorat Jenderal Pembangunan dan Pemberdayaan Masyarakat Start Date to Closing Date Desa, PPMD), Ministry of June 2013 to December 31, Village, Disadvantaged Areas, 2017 and Transmigration (MoV ) Geographic Coverage Approved Budget 5,400 villages in 499 poor sub-districts US$194,724,166 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 Map 2. Provinces Covered by PNPM Generasi Nanggroe Aceh Darussalam North Sumatera North Maluku North Sulawesi East Gorontalo Riau PROJECT RATIONALE AND Islands Kalimantan Riau West West OVERVIEW Kalimantan Central Papua Sulawesi Jambi Bangka Central West In mid-2007, the Indonesian Government launched SumateraPNPM West Belitung Kalimantan Sulawesi South Sumatera Generasi to test the effectiveness of an incentivized, Bengkulu Jakarta Special South Kalimantan Papua District participatory block grant system to meet the health and Lampung Central Java South Sulawesi Southeast Maluku Banten Sulawesi education needs of women and children in poor, rural West Java Bali areas. Despite great strides made in improving key human Yogyakarta Special East Java District West development indicators over the past several decades, Nusa Tenggara East Nusa Tenggara 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) own solutions to address these constraints, appropriate achievement of universal basic education; (ii) reduction to their specific situations. If community interventions in child mortality; and (iii) improvement in maternal result in improved health and educational outcomes health, with its stated development objective being to in terms of the defined indicators, the sub-district empower local communities in poor, rural sub-districts is rewarded through increased budget allocations in project provinces to increase the utilization of health in the following year. A series of impact evaluation and education services. With the inclusion of the 130 new of the PNPM Generasi program conducted between sub-districts in three new provinces, namely West 2007 and 2010 demonstrated that the program has Kalimantan, Central Kalimantan and South Sumatra, the had a statistically-significant positive impact especially program now operates in 11 provinces in 499 sub-districts on indicators such as the frequency with which young throughout Indonesia. children took part in weight checks, a vital process in the detection and management of malnutrition. The With the help of local facilitators, PNPM Generasi project also had the greatest impact in areas with low provides funds to enable communities and local health baseline health and education indicators, such as East and education providers to work together to identify Nusa Tenggara (NTT ) province, a province in which pressing constraints on the provision and use of critical health and education problems are often regarded as educational and health services, as well as to develop their particularly intractable. 30 | 2015 PSF PROGRESS REPORT Over the years, some aspects of the program design to determine the impact that the aforementioned delays have been modified to reflect lessons learned through had on project operations, especially in terms of filling the implementation of the program and the evolving vacant facilitator positions and found that the issues priorities of the Government. In particular, in the area of related to the transition had been resolved and that the health, the Government is placing an increased emphasis project was back in a position to achieve its targets. on improving maternal and child nutrition as a means to reduce the rate of incidence of low birth weight and the Progress towards prevalence of stunting amongst children under the age development objective of two. PNPM Generasi’s demand-side approach is now Despite the implementation challenges faced in 2015, accompanied by complementary supply-side activities the project remains on track to achieve its development aimed at improving the quality and availability of maternal objective. The value of block grants disbursed in health and nutrition services and implemented by the 2015 amount to Rp. 520 billion, or 99 percent of the Ministry of Health (MOH) and district governments. budget allocated for this purpose (Rp. 526 billion). By This was accompanied by substantial design changes mid-2015, the level of involvement of women stood at including the revision of target indicators. 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, PROGRESS IN 2015 it was decided not to deliver the Performance Monitoring Despite challenges in 2015, PNPM Generasi made Survey in 2015, as the IE surveys will provide robust data satisfactory progress towards the achievement of its on KPI achievement. However, the data from these surveys development objective. will not be available until late 2016. As such, government will rely on data from the project MIS and implementation Changes in support missions to assess implementation progress, Implementation arrangements identify challenges, and make corrective actions. The transfer of the responsibility for the implementation Implementation delays in 2015 have delayed the process of the Generasi program from the Ministry of Home for uploading data on village expenditures to the Affairs (MOHA) to the Ministry of Villages, Disadvantaged web-based MIS. At the time of reporting the number of Areas, and Transmigration (MOV ) resulted in significant project beneficiaries in the 235 villages for which data was disruptions to the program in the first half of 2015, with available and had been verified was 588,713. The project delays in finalizing facilitators’ contracts; in transacting the covers a total of 5,700 villages, with a total number of payment of salaries and travel resources for the Project targeted beneficiaries of 4.9 million. Based on the data Secretariat staff; and in enabling communities to access from these villages, 79.41 percent of the value of block multi-year sub-project funds disbursed in late 2014. A grants provided through the project were utilized for re-appraisal mission was held in April during which the health related purposes, while 20.47 percent were utilized World Bank worked with the Government to assess MOV’s for education (Figure 1). capacities to implement PNPM Generasi under the new institutional arrangements. On May 8, 2015, the World Education Bank and the Ministry of Finance (MOF) hence approved In 2014, the PSF worked with the Directorate General of an amendment to the grant agreement to reflect the new Community and Village Empowerment (Pemberdayan implementation arrangements. By July, the Directorate Masyarakat Desa, PMD) to pilot interventions to of Basic Social Services (Direktorat Pelayanan Sosial Dasar, incentivize participation in Early Childhood Education and PSD) at the Directorate-General of Village Community Development (ECED) services in three districts. An impact Empowerment and Development (Direktorat Jenderal evaluation2 of MoEC’s ECED project showed impacts Pembangunan dan Pemberdayaan Masyarakat Desa, on early achievement gaps as measured by an array of PPMD) under MoV made its budget effective and began child development outcomes and enrollment, providing making salary payments to the consultants and facilitators clear evidence that in project villages, the achievement backdated to the beginning of the year. In September, gap between richer and poorer children decreased on representatives from the MoV; the Ministry of Health many dimensions. By contrast, in non-project villages, (MoH); the MoF; and the Indonesian State Finance and this gap either increased or stayed constant. Thus, Development Surveillance Committee (Badan Pengawasan Keuangan dan Pembangunan, BPKP) and the World Bank 2 The Impact of Early Childhood Education on Early Achievement Gaps: Evidence from the Indonesia Early Childhood Education and Development conducted an follow-up Implementation Support Mission (ECED) Project (Haeil Jung, Amer Hasan) PNPM Generasi | 31 Figure 1. Block grant expenditures on Education FY Figure 2. Block grant expenditures on Health 2015 FY 2015 0.11% 9.25% Financial assistance and 2.00% 5.83% Medicines transportation for 8.36% Extracurricular 0.21% Facilities and pregnant, children Community equipment awarness raising Infrastructure to use services on education (build and rehabilitation) 1.86% 7.00% Transportation 9.07% 2.78% Infrastructure (build and (midwife, Financial Facilities and doctor, equipment rehabilitated) incentives and cadre posyandu) transport for services to assist for education use services workers 43.17% Supplementary feeding 14.29% (malnutrition, Financial incentives school feeding, etc) for health workers 36.28% 41.30% Financial assistance Items for poor students (books, uniforms, etc) 5.75% for poor students Counseling and (scholarships, transport) 0.52% 12.22% training Financial to rent house (formaternity/ Woman pregnant delivery) class and parenting class there was sufficient evidence to justify the expansion In 2015, according to data derived from the MIS (with of ECED activities in PNPM Generasi areas, with the PSF 235 participating villages reporting), three classrooms Joint Management Committee (JMC) granting formal were built or upgraded through the project; 730 students approval for the implementation of an ECED frontline received financial support (scholarships, uniforms, project in April 2015, with approved funding to a value transportation subsidies); 333 received nutrition support, of US$11.6 million (US$5.4 million from the PSF, and while 90 contract teachers and teaching assistants US$5.6 million from the Ministry of Education and Culture received financial support. (MoEC). This project is intended to strengthen the system for frontline delivery of high quality, sustainable Health ECED services in poor, rural communities, and will be To support the Government’s community-based health implemented in 25 of 66 poor, rural districts participating and nutrition program, the PSF assisted in socializing and in the Generasi program, including districts in Gorontalo, facilitating the roll-out of complementary supply-side West Java, East Java, West Kalimantan, Central Kalimantan, activities implemented by the Ministry of Health (MoH) West Nusa Tenggara, East Nusa Tenggara, West Sulawesi, with Millennium Challenge Account – Indonesia(MCA-I) North Sulawesi and South Sumatra. support, with particular emphasis on the provision of training related to Infant and Young Child Feeding (IYCF). Preparatory activities of the ECED frontline pilot program In 2015, the training of trainers and on-the-job training were implemented in the period from July to December for master trainers was completed. The provision of 2015, including the assessment of district-level ECED training on matters related to IYCF to puskesmas staff, policies and programs (regulations, staffing, funding, village midwives, and posyandu cadres is ongoing and is activities, involvement of CSOs and private sector, expected to be completed by the first quarter of 2016 in etc.) to be used as baseline data; initial discussions six provinces (South Sumatra, West Kalimantan, Central with district-level stakeholders to provide them Kalimantan, West Java, East Java and North Sulawesi) and with information regarding their expected roles and by the second quarter of 2016 in the other five provinces responsibilities; an initial assessment of synergies with ( West Sulawesi, Gorontalo, Maluku, West Nusa Tenggara existing PNPM Generasi programs at the district level; and East Nusa Tenggara). MCA-I is planning to establish an preparation of the project implementation manual; and IYCF Resource Center in 2016, which will involve setting socialization and groundwork to ensure the integration of up an online knowledge platform that contains all relevant the pilot with the overall PNPM Generasi program cycle. learning materials related to IYCF and training modules, Implementation of the project will commence at the with regular quarterly meetings involving national IYCF beginning of 2016, with the pilot scheduled to run until facilitators and relevant stakeholders to discuss best December 2017. 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 included a qualitative component, and conducted 235 participating villages reporting), 3,512 cases of an institutional assessment of posyandu. Two Reality underweight children were addressed through the Check Approach studies commissioned were initiated program; 401 cases of mother KEK were addressed by the DFAT Knowledge Sector Initiative and will be through the provision of supplementary feeding; 21 health delivered in Q1 2016. These studies aim to understand: were facilities built or upgraded; and 3,234 health (a) nutrition and hygiene information and behaviors from volunteers received financial support. the perspective of the rural poor, and (b) service delivery challenges as experienced by frontline health workers. Research and Evaluations In 2015, the PSF secured approval for the final phase of a long-term Impact Evaluation to determine the FUTURE PLANS effectiveness of the incentivized community block In 2016 and beyond, the PSF will focus on supporting the grant approach to improving health and nutritional implementation of the PNPM Generasi Transition Strategy, outcomes, which will be conducted throughout 2016 and which aims to: (i) integrate Generasi’s facilitation structure delivered in 2017. It also delivered the 2014 round of within the single, comprehensive facilitation structure the Performance Monitoring Surveys (PMS), which mandated by the Village Law; (ii) phase out the provision PNPM Generasi | 33 of specific block grants through the program by 2018, Generasi’s planning processes have not been in sync with these grants to be replaced by general village-level with village planning processes, due to the fact that the grants; and (iii) assist village communities to diagnose PNPM Generasi planning process takes place in July to and address issues affecting the delivery of basic services, correspond with the school enrollment process, which using village government resources. While most districts takes place in July-August, whereas village development will continue to receive block grants in 2016, the phasing planning processes take place in February annually. An out of the grants will be tested in four districts in four opportunity to achieve a higher level of integration provinces, as part of an exit strategy preparation pilot. In between PNPM Generasi planning processes with village addition, the project will focus on building the capacities planning processes now exists through the establishment of village-level facilitators in the areas of networking, of linkages between the Annual Village Development coordination and advocacy; building the capacities of Action Plan (Rencana Kerja Pembangunan Desa, RKPDes) facilitators and village-level institutions to implement and the Annual Village Budget (Anggaran Pendapatan planning processes; integrating Generasi activities into Belanja Desa, APBDes) development processes in the Village Plans; building the capacities of local governments second half of the year. Achieving these linkages is part of to manage and engage with village-level institutions the PNPM Generasi Transition Strategy. and facilitators; building the capacities of village-level institutions, community groups and other stakeholders The need for informational resources and PNPM to engage with the health and educational sectors; Generasi Facilitators support. Another important and building the capacities of community and village lesson learned is that community/village development institutions such as posyandu. and planning processes are more likely to be successful if efforts to strengthen community capacities are The PSF will also focus on delivering an evaluation of the supported with the provision of sufficient resources long-term impact of PNPM Generasi, with the primary and if facilitators are well-trained in the relevant issues. purpose of this evaluation being to determine whether At present, both village- and district-level officials lack the program is improving health and education outcomes. information related to the implementation of the Village In addition, it will serve as an important input to align Law, including on matters related to the mechanisms for village investments with investments made by other its implementation and the use of the Dana Desa ( Village levels of government to address health and education Funds sourced from the National Budget). Hence, there challenges, as well as to guide the development of is a tendency to opt for expenditures on infrastructure Bappenas’ frontline service delivery program and the projects, which are considered “safe”, rather than on implementation of the Scaling Up Nutrition (SUN) much-needed capacity-building in the areas of education movement in Indonesia. and health. PNPM Generasi facilitators therefore need a better level of knowledge on matters related to the From the beginning of 2016, the ECED Pilot program will Village Law, including on their roles in cooperation with be implemented in 25 locations. In 2016, the Generasi the government-appointed district-level experts (tenaga project will provide funding to support the cost of training ahli), sub-district level supporting facilitators (pendamping teachers, with the Ministry of Education providing master desa), and village facilitators (pendamping lokal desa), who trainers in each selected location. The pilot, which will run provide support to two to three villages each. 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 34 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Cumulative Target Cumu- Cumu- Base- lative lative Target line Target Achieve- for Achieved Indicator (2012) (2017) 2013 2014 2015 2016 ments VAR 2015 in 20151 VAR Remarks PDO#1: Improved access to and utilization of health services in the targeted areas % of pregnant 70 >80 70 75 75 80 68 -12 >75 n/a n/a Source: 2015: Gen- women receiving erasi long-term IE four prenatal care surveys visits % of deliveries 75 >85 75 80 80 85 89 +4 >80 n/a n/a Source: 2015: Gen- assisted by trained erasi long-term IE professionals surveys % of children under 75 >85 75 80 80 85 81 -5 >80 n/a n/a Source: 2015: Gen- three weighed erasi long-term IE monthly surveys % of pregnant 0 >60 0 50 55 60 17.2 -42.8 55 n/a n/a The shortfall was due women participat- to the implemen- ing in pregnancy tation delays in the and nutrition class supply side activities monthly* by the MoH. % of male caregiv- 0 40 0 10 20 30 1.4 -38.6 20 n/a n/a Source: 2015: Gen- ers participating erasi long-term IE in pregnancy and surveys nutrition class monthly % of parents 0-2 0 >60 0 50 55 60 55 -5 >55 n/a n/a Source: 2015: Gen- year olds partici- erasi long-term IE pating in children surveys parenting PDO#2: Improved access to and utilization of education services in the targeted areas Junior secondary 65 >85 65 70 70 85 93 +8 >70 n/a n/a Source: 2015: Gen- enrollment rate erasi long-term IE surveys 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 >60 60 60 60 60 55 -9 >60 47 -13 Source: MIS data members PDO#4: Total number of beneficiaries 499 kecamatan (old 5.4 4.9 5.4 4.9 4.9 4.9 4,977,979 -1.7 4.9 588,713 -4.3 Source: MIS data— and new locations) mil- mil- mil- million million 235 villages report- lion lion** lion ing. To be updated in Q2 2016. 130 kecamatan 0 1.3 0 1.3 1.3 1.3 340,021 -1 1.3 n/a n/a Source: MIS data— (new location) mil- mil- million 2015 figures to be lion lion 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 (Intermedi- 85 >90 85 85 90 90 99.6 +9.4 90 99 -82 Source: MIS data ate Outcome extracted in early Indicator)#1: % of September. The sub-districts with updated data was 100% disbursement disrupted due to MIS rate at the end of system shut down. program cycle IOI#2: % of previous 25 >50 35 40 50 50 46 -4 50 46 -4 Source: MIS data non-users as beneficiaries of sub-projects IOI#3: % of sub-dis- 60 80 60 60 70 80 99.4 +19.4 70 8 -62 Source: MIS data tricts in which service providers attended MAD PNPM Generasi | 35 KEY PERFORMANCE INDICATORS Cumulative Target Cumu- Cumu- Base- lative lative Target line Target Achieve- for Achieved Indicator (2012) (2017) 2013 2014 2015 2016 ments VAR 2015 in 20151 VAR Remarks Component 2: Facilitation Support IOI#4: % of district 45 50 50 50 50 50 n/a n/a 50 n/a n/a Data on supervision government which by district govern- conducted super- ments are not yet vision to communi- available ties as planned IOI#5: % sub-dis- 40 80 70 70 80 80 99.4 +19.4 80 99 -72 Source: MIS data tricts conducted planning and coor- dination workshop with district-level health and edu- cation office to discuss Generasi activities IOI#6: % of dis- 80 85 80 80 85 85 77 -8 85 17 -68 Source: MIS data trict-level MIS data completed (verified, entered and submitted) IOI#7: % of sub-dis- 60 >70 60 65 65 70 44 -26 >65 n/a n/a Source: MIS data tricts in which 50% of villages conduct- ed cross-village audits as planned Component 3: Implementation Support and Technical Assistance IOI#8: % of planned 80 90 80 90 90 90 97 +7 90 96 +6 Source: MoV data facilitators at all project training re- levels were recruit- fresher and pre-ser- ed and trained vice 2015 according to the agreed training plan IOI#9: % of sub-dis- 20 20 20 20 20 20 28 +8 20 n/a n/a Source: Audit report tricts audited each due in July 2016. year and for which the results are published. * 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 SUMMARY INFORMATION Status Task Team Executing Agency(ies) IN ACEH Leader(s) Active Evi Hermirasari The Directorate General of (ehermirasari@ Human Settlements (DGHS), worldbank.org) The Ministry of Public Works George Soraya and Housing (gsoraya@ worldbank.org) Start Date to Closing Date December 28, 2012 to December 15, 2016 Geographic Coverage Approved Budget Aceh province (12 cities/ US$25,358,557 districts) PROJECT RATIONALE 3 Implementation Support and Technical AND OVERVIEW Assistance: This component supports activities PNPM Urban is a core component of PNPM Mandiri, to build the capacities of the staff of the Project which prior to the implementation of the Village Law Management Units (PMUs) and local governments served as the Indonesian Government’s flagship poverty and their agencies. It also facilitates monitoring and alleviation and community empowerment program. evaluation activities; and PNPM Urban supports the Government’s efforts to 4 Contingency for Disaster Response: This ensure that the urban poor benefit from improved component supports preparedness and rapid local governance and living conditions. PNPM Urban response measures to address disasters, emergencies now covers 10,924 kelurahan (urban wards), involving and/or catastrophic events, as needed, at the urban around 26.7 million beneficiaries. In 2012, the PSF Joint ward level, through sub-projects and/or using project Management Committee (JMC) approved a joint proposal implementation agreements. by the Government and the United States Agency for International Development (USAID) for a US$ 23.5 million The closing date for PNPM Urban in Aceh is grant to support the implementation of PNPM Urban December 31, 2016. A series of studies, both in the province of Aceh, with this grand involving four quantitative and qualitative, will be conducted to components: evaluate the implementation of the project in Aceh, 1 Capacity Building for Communities and Local with activities related to these studies commencing Governments: This component supports the in the first semester of 2016. provision of training and workshops, and facilitation for community boards of trustees (BKMs), community groups and Revolving Loan Funds (RLFs) unit staff; PROGRESS IN 2015 2 Kelurahan Grants (to a total value in excess of US$ 14 million): This component is utilized The PNPM Urban Core Program to co-finance sub-projects identified through The PNPM Urban Core Program in Aceh made good community development plans, including pilot progress towards the achievement of its development interventions to mainstream the participation of objective throughout the year. By November 2015, all women in community projects and decision-making regular block grants had been fully disbursed and utilized processes (SELARAS); spatial development programs by urban communities. In 2015, 438,794 people benefited for the development of neighborhood infrastructure from the PNPM Urban Program in Aceh, of whom targeting the poorest of the poor (Neighborhood 53.7 percent were female. Although the original project Development Program); and interventions to document did not stipulate targets for certain KPIs in 2015, strengthen the livelihoods of poor communities consultants and facilitators still regularly reported progress (Sustainable Urban Livelihoods Program); through the management information system, except for PNPM Urban in Aceh | 37 data related to local governments’ cost-sharing (which is achieved, except for the target related to the indicator for no longer required in 2015). On December 31, 2016, the the performance of Revolving Loan Funds (RLFs), which PNPM Urban Program in Aceh will officially close, although have been problematic throughout all areas in which they the existing structure will be used to support the National have been implemented across Indonesia. Slum Upgrading Program (NSUP) 2015-2019. In October 2015, a revised set of guidelines for SELARAS The Neighborhood Development were adapted to meet a requirement of the Village Law Pilot Program that villages incorporate all project-based planning The pilot Neighborhood Development (ND) program documents into a singular Mid-term Village Development is an advanced intervention aiming to improve living Plan (Rencana Pembangunan Jangka Menengah, RPJM conditions and livelihoods for communities in the poorest Desa), with these guidelines socialized amongst local areas/slums selected from the PNPM Urban locations. governments, consultants, facilitators and communities. In addition to the facilitators, urban planners are hired In line with the upcoming NSUP, the SELARAS program by communities (using the block grants provided to has incorporated community settlement planning into them) to provide sound urban planning and spatial village planning processes, including BKMs (Community analysis. Community self-surveys are conducted to Boards of Trustees) in village planning teams. The project identify infrastructure gaps, community problems and provided support for local governments to conduct study the location of poor households, after which Community visits and held collaborative workshops on the integration Settlement Plans are developed with the cooperation of of issues related to slums into planning processes. A series all stakeholders. The ND program has been implemented of provincial and national level workshops were held to in 15 gampong (villages) in five cities in Aceh. disseminate information to and generate commitment amongst a range of stakeholders involved in the Each gampong received a grant of Rp 1 billion (equivalent integration of slum issues into RPJM Desa for gampong. By to approximately US$ 71,500) to construct priority December 31, 2015, most activities related to advocacy infrastructure. By December 31, 2015, all grants had for local governments and village leaders and staff, been disbursed and utilized for the construction or socialization and training had been completed or were rehabilitation of 3,023 m of tertiary roads; 1,625 to near completion. A similar approach to that implemented m of drainage; 368 sanitation facilities; 151 housing by SELARAS will be applied to achieve the integration of rehabilitation units; 11 economic facilities; 8 educational issues related to the management of slums into RPJM Desa facilities; 39 water supply facilities; 2 sanitation facilities; for gender mainstreaming. Amongst other means, this and 26 park/open space/greening projects. will involve holding women-only meetings, in addition to mixed gender community meetings, to ensure women SELARAS (gender mainstreaming have a safe space to air their grievances; the promotion program in Aceh) of women as committee members in planning teams and The SELARAS program in Aceh covers 426 gampong other community groups; and the disaggregation of data in 12 districts/cities across the province. In 2013-2014, on the basis of gender. the program focused on strengthening the gender-responsive approach to community planning Sustainable Urban Livelihoods within the core PNPM Urban program. During this period, Pilot Program each participating village received US$ 15,000 per year to The objective of the Sustainable Urban Livelihoods finance the operational costs of BKMs, community training, Program pilot program is to economically empower and infrastructure and social investments. Funds to a value the urban poor in Aceh. The program endeavors to of approximately US$ 9 million have been disbursed since achieve this through institutional building and group the start of the SELARAS program in 2012, with these capacity development; through the provision of financial funds utilized for the construction or rehabilitation of management skills training; and through the identification about 162,000 m of tertiary roads; 82,000 m of drainage of areas for the provision of further technical assistance networks; 2,700 m of sewerage channels; 1,000 m of water related to entrepreneurship and social welfare. Out of supply connections; and 1,000 sanitation facilities units, the 56 pilot kelurahan in Indonesia, four are in Aceh (in and for the rehabilitation of 500 houses. A small portion of the cities of Lhokseumawe and Banda Aceh). Community the grants was also used for construction of public health, members are organized into groups (KSMs), through education and community market facilities. As detailed which the five key principles of livelihoods (regular in the KPI table below, almost all KPI targets have been savings, regular meetings, regular bookkeeping, regular 38 | 2015 PSF PROGRESS REPORT lending, and repayments) are socialized, with volunteers zz The provision of vocational training under the recruited to facilitate the group. The implementation Livelihoods program, subject to the results of of this program in Aceh has not proceeded as rapidly discussions with the Ministry of Public Works and as in other cities in Indonesia due to a delay in the Housing and Bappenas. 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 LESSONS LEARNED achieved by the end of December 2015. A monitoring Through the implementation of this project, it has study implemented by SMERU in October 2015 reported been demonstrated that the full involvement of that KSM members benefited from pilots by gaining an local governments is essential to ensure programs increased understanding of matters related to household move forward effectively. Local governments have not financial management (savings and credit); by improved only provided funds under cost sharing arrangements access to microloans; and by improved capacities in the for activities at the community level, they have also areas of the management of group dynamics. However, provided technical assistance through city-level the pilot was found to have at least partially failed to technical teams; conducted public consultations to meet the expectations of group members, most of whom socialize the integration of top-down and bottom-up (87.5%) expected to receive vocational training, while planning processes under RPJM Desa; conducted regular most of the group activities focus on strengthening monitoring, and engaged in a number of other supportive organizational capacities and facilitating access to activities. In particular, a number of local governments microloans. By the end of 2015, the sustainable livelihoods have developed and enforced regulations to facilitate mechanisms had been applied to 142 community groups the inclusion of BKMs into village planning teams in in 56 pilot kelurahan in 14 cities in Indonesia. some cities. Collaboration with business development centers: A FUTURE PLANS monitoring report on the Livelihoods program conducted In the context of the implementation of the Village Law by SMERU Research Institute notes a lack of access to and NSUP, the SELARAS program in Aceh will continue consumer markets by a number of intended beneficiaries, to facilitate the inclusion of BKMs into village planning and the lack of capacities among the recruited volunteers teams and the incorporation of settlement planning to train group members on matters related to business into mid-term village development planning. In line development. These issues may be resolved through with city-level slum alleviation plans, the overall aim collaborative arrangements with business development of activities in 2016 is to facilitate the integration of centers. Such arrangements will be established to Community Settlement Plans developed under ND/PNPM provide vocational and business development training in Urban into village development plans. Specifically, the the future. 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. PNPM Urban in Aceh | 39 KEY PERFORMANCE INDICATORS Targets Differ- (Cumulative) Cumu- ence lative with Prog- cumu- Deliv- ress lative ered in as of target Result Unit of Total 2015 Dec 31, for Comments on prog- Indicators Measure Baseline Target 2013 2014 2015 2016 (only) 2015* 2015 ress 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- - >80% n/a 80% 80% 80% 96% 96% +16% least 20% less expen- ticipating sive than that built by kelurahan non-community based approaches Min 90% of complaints % 95% >90% n/a >90% >90% >90% 99% 99% +9% are resolved resolved com- plaints Project beneficiaries People 54,400 32,000 n/a - - 32,000 438,794 740,226 - Of which 40% are People 0% >40% n/a >40% >40% >40% 53.7% 52.7% +12.7% female (beneficiaries) Intermediate Results (Component 1): Capacity Building for Communities and local Governments Participation rate % of Par- 54% > 40% n/a >40% >40% >40% 69.2% 65.6% +25.6% of the poorest and ticipants (PNPM vulnerable community Urban III) members in planning and decision making meetings Participation rate of % of Par- 47% > 40% n/a >40% >40% >40% 51.6% 48.6% +8.6% women in planning ticipants (PNPM and decision making Urban III) meetings Percentage of the % of 31% > 30% n/a > 30% > 30% > 30% 34% 32% +2% adult population vot- adult (PNPM ing in BKM elections Urban III) at the neighborhood level Percentage of local % of par- 75% > 80% n/a > 80% > 80% > 80% - 100% +20% governments provide ticipating (PNPM required cost-sharing LGs Urban AF & III) Component 2: Communities receive improved access to infrastructure based on Community Development Plans Percentage of % Infra- 0% > 70% n/a > 70% > 70% > 70% 99.8% 99.8% 29.8% infrastructure works structure evaluated as of good Activities quality Percentage of urban % of par- 34% > 50% n/a > 50% > 50% > 50% 10% 10% -40% The under-performance wards with revolving ticipating of the RLFs is a national loan funds (RLFs) hav- Kelura- problem related to ing a portfolio at risk han a lack of specialized (PAR) ratio > 90% days facilitation, socializa- of < 10% tion of communities and insufficient local government support. There are several efforts underway to resolve these problems. Component 3: Consultants provide technical assistance and implementation support to the project Percentage of over- 80% > 90% > 90% n/a > 90% > 90% > 90% 99% 99.3% +9.3% sight consultants (OCs) (PNPM providing timely & Urban III) accurate data through MIS Percentage of BKMs 90% > 80% > 80% n/a > 80% > 80% > 80% 100% 98.6% +18.6% with completed annual (PNPM financial audits Urban Addition- al Financ- ing) * Source of data: MIS as of November 30, 2015 WINDOW TWO IMPLEMENTATION AND COORDINATION SUPPORT 42 | 2015 PSF PROGRESS REPORT WINDOW TWO PNPM RURAL SUMMARY INFORMATION Status Task Team Leader(s) Executing Agency(ies) IMPLEMENTATION Active Sonya Woo (swoo1@ worldbank.org) Sentot S. Satria The World Bank SUPPORT (ssatria@worldbank. org) Start Date to Closing Date May 14, 2008 to December 31, 2016 Geographic Coverage Approved Budget National: 5300 sub-districts, 403 US$7,796,270 districts, 33 provinces PROJECT RATIONALE AND intended to assist PMD to formulate recommendations, OVERVIEW strategies and policies on the basis of evidence-based Since PNPM Rural was first launched in 2008, the and technical analyses. The project also provides program has been scaled up to cover approximately portfolio-wide implementation assistance and facilitates 5,300 sub-districts, with this number increasing from engagement with local-level project stakeholders, with 2,600 at the program’s inception. A number of studies the findings from field-level activities being aggregated and evaluations have found that this scale-up caused to assist PMD to identify and address relevant issues substantial strains on the program’s management and and to determine opportunities for the development of governance frameworks. To achieve the program’s pilot projects. development objective, which is for villagers to benefit from improved local governance and socio-economic conditions, In 2011, the Government and development partners it was deemed necessary to intensify the provision of agreed to focus on strengthening five key areas identified support in these areas. as critical for program management, as follows: (i) capacity building for PMD to manage the program optimally; (ii) In response to this perceived need for intensified support, the redesign of the Management Information System (MIS) the Joint Management Committee (JMC) approved the to enable the provision of reliable and comprehensive establishment of an implementation support trust fund data; (iii) the strengthening of the Complaints Handling to facilitate improvements to both PNPM Rural and PNPM System (CHS) to enable the better detection, monitoring Urban in May 2008. In 2009, a separate trust fund was and resolution of fraud and corruption cases; (iv) the established specifically to facilitate improvements to reinforcement of formal and informal fiduciary controls; the supervision of PNPM Urban. In 2010, two additional and (v) improvements to the system for the management projects were established to work in close cooperation of facilitators, particularly in the area of career to provide support for: (i) the implementation and development, training, and levels of remuneration. monitoring of PNPM Rural and the two Papua-based projects, PNPM Rural/RESPEK and PNPM Agriculture; In October 2014 the Government established the and (ii) field operations and governance and fiduciary new Ministry of Village, Disadvantaged Areas and systems. The Implementation Support project provides Transmigration (MoV ). This new Ministry was assigned technical support, guidance, and supervision through the mandate for executing functions related to village field-based monitoring and through other activities development and community empowerment. In to improve governance, fiduciary, and monitoring and February 2015, the Government determined that the evaluation (M&E) systems. In addition, the project team responsibility for the implementation of PNPM Rural has also engaged in high-level policy dialogue with PNPM would be transferred from MoHA/PMD to MoV. Following Rural’s implementing agency, the Directorate General of this particular transfer in June 2015, the PSF has provided Community and Village Empowerment (PMD) under the support to the new implementing agency, the Directorate Ministry of Home Affairs, and with the Steering Committee General of Development and Village Community of PNPM (Pokja Pengendali). All these activities are Empowerment (PPMD) under the MoV. community meeting to decide the use of the block grant, at Way Perancang Village, Lampung PROGRESS IN 2015 31, 2016, in order to give the Government additional time The project has made steady progress towards the to complete PNPM closure activities and to manage the achievement of its development objective. In June 2014, transition to the new context created by the Village Law. the Government promulgated the Village Law, which provides the legal framework for community development The most significant developments during 2015 were and programming into the future. Following the the establishment of the Village Law National Secretariat promulgation of this law, the Government began phasing (the function of which is to support MoV in managing the out the PNPM project in 2015. After some delays, the day-to-day implementation of the program); the issuance MoV is now taking decisive action to implement activities of the PNPM closure guidelines; and the re-deployment related to the closure of PNPM and to resume previously of around 10,500 facilitators formally employed under suspended key activities under Components 1 and 2 of the PNPM program to support activities related to the the project. While the objectives of the Village Law are closure of this program and to support initial Village Law similar to the development objectives of PNPM Rural, the planning activities. Project reports show that 98 percent of new law poses significant new challenges, in terms of villages have handed over all infrastructure sub-projects both scope and scale, as it involves the comprehensive to communities in accordance with the established institutionalization of the principles of community-driven guidelines. The remaining two percent of villages are development into government structures down to the spread across 28 provinces, with the rate of progress village level. In June 2015, the Project was restructured towards completion currently ranging from 77 percent in accordance with the Government’s previously described to 99 percent. The MoV also implemented Grand Master decision to transfer the mandate for matters related to village Training (GMT ) and training of trainers in the period from development and community empowerment from MoHA August to September 2015, with this training intended to MoV and to align the Project’s focus and activities with to support the closure of PNPM Rural and preparations the new Village Law and associated regulations. The PNPM for the implementation of the Village Law. In addition, Rural Implementation Support project’s closing date was the PNPM Support Facility (PSF) team was engaged in a therefore extended from December 31, 2015 to December series of technical discussions to develop a new Village 44 | 2015 PSF PROGRESS REPORT Law facilitation structure in the period from September zz In several provinces, undisbursed block grants (BLM) to December 2015. The implementation support team and operational funds (Dana Operasional Kegiatan, provided guidance on the planning, design of activities, DOK) balances remain idle in Sub-District Activity regulatory development and implementation activities. Management Unit (UPK) accounts, and outstanding Specific activities included the review and provision of Revolving Loan Funds (RLF) funds exist. While MoV has inputs for the development of terms of reference, concept reported that all RLF balances have been validated, notes, training modules, work plans and budgets. a policy on how sub-districts should deal with these account balances and outstanding balances has not In addition, the PSF carried out an implementation been finalized, thereby putting funds at risk and further support mission between October to November 2015. The delaying the financial and administrative arrangements mission’s objectives were to: (i) review the performance related to the closure of PNPM. There is an urgent of the project; the progress of activities related to the need for Bappenas, MoV and PMK to work together to closure of PNPM; and fiduciary compliance; (ii) develop prepare a Ministerial Regulation to ensure RLF balances a shared understanding of MoV’s key priorities under are prudently handed over to communities and to the Village Law; its institutional and implementation legitimize the legal status of the RLF; arrangements; and the design of its supporting facilitation zz According to data obtained from 17 provinces, structure; (iii) discuss the Project’s work plan, budget 2,583 fraud and corruption cases involving funds to a and procurement plan for 2016 to secure agreement on total value of Rp 113.9 billion remain unresolved. MoV how the remaining World Bank loan would be used to is in the process of developing technical guidelines support key implementation activities; (iv) review the to facilitate the transfer of unresolved cases to evaluation of the administrative service firm contract; Inter-Village Cooperation Boards (BKADs) after the and (v) support a South-South learning exchange on closure of PNPM; community-driven development facilitation models zz 1,400 of 1,915 previous BPKP Audit findings amounting involving stakeholders from the MoV, the World Bank, and to Rp 60.46 billion needs to be refunded to the State government agencies from the Philippines and India. The Treasury; and aide memoire presented a number of important findings zz The Project’s IRIs need to be updated and the annual and recommendations related to policy and management report for 2015 compiled and submitted to the World issues, including reviving the role of the Implementation Bank for verification. Coordination Teams ( Tim Koordinasi) to coordinate key policy issues; extending the contracts of former PNPM On October 28, 2015, it was announced that the facilitators to December 31, 2016; recruiting additional MoV’s total budget for FY 2016 would amount to Rp sub-district facilitators to work on labour-intensive 8.7 trillion, including Rp 1.8 trillion (or approximately infrastructure activities; and enacting policy on the US$ 130 million) of IBRD loan financing. Following the legalization and sustainability of the Revolving Loan Fund. 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 FUTURE PLANS community empowerment activities implemented by Although good progress has been made towards the the MoV under the mandate of the Village Law. It was closure of PNPM Rural, a number of locations may need agreed that the loan would be utilized to finance the additional assistance to complete activities related to this contracting of administrative service firms and to provide closure due to limited capacities in these locations. In technical assistance to develop new management particular, the provinces of North Kalimantan and North arrangements within MoV to support Village Law Sulawesi may require additional assistance to ensure that community empowerment activities, including the all sub-projects are handed over in compliance with the payment of facilitator salaries; the provision of training closure guidelines. In addition, the following key issues for facilitators; the implementation of socialization may affect MoV’s capacity to successfully complete the activities; the provision of training for community-based closure of the PNPM program by the end of 2015: institutions and civil society organizations; provincial-level zz A third of all provinces have a facilitator vacancy coordination meetings; research and CSO engagement; rate in excess of 20 percent, with some sub-districts the development of MIS for facilitation monitoring and reporting vacancy rates as high as 40 percent. reporting; and, possibly, for the payment of salaries to These high vacancy rates may impede the village facilitators, subject to agreement being reached on implementation of closure activities; the terms and conditions of their engagement. PNPM Rural Implementation Support | 45 The Implementation Support Trust Fund will be used to processes are established in the Government’s planning, co-finance activities in each of these areas. In addition, budgeting and implementation procedures. Moreover, the implementation support team will continue to engage experience also shows that including civil society, with MoV and other government stakeholders in the areas marginalized groups, and communities in the local of program management; communication and learning; development process is key to encouraging transparency, facilitation and community training; and analytics. These accountability, and the appropriate targeting of activities will include the following: investments and development outcomes. Overall, lessons zz In addition to refresher training for former PNPM such as these provide a good basis for the assessment facilitators and planned pre-service training for new of risk. recruits, the implementation support team will assist MoV to identify a funding mechanism to support Based on Indonesia’s experience with decentralization, a socialization and community-learning campaign by itself, the Village Law will not guarantee a high level under the Village Law. It has been agreed that terms of performance, efficiency, results, and impact unless of reference will be developed by the implementation the Government develops an enabling framework that support team by the end of January 2016, in includes simple implementing regulations; that links the consultation with MoV. use of village funds to incentives that align with national zz In the area of analytics, the implementation support development and fiscal priorities; that develops an team will continue to support the MoV in the effective facilitation system, implementation guidelines, preparation of their Quarterly Progress Reports, and a performance-based results monitoring system; and as key Intermediary Results Indicators (IRIs) are that provides capacity building at both the national and still outstanding. The impact evaluation of PNPM sub-national levels. Rural 2012-2015 is ongoing and will be finalized by the end of March 2016. The evaluation covers the There is strong evidence to indicate that basic project’s technical performance, economic benefits, infrastructure is a prerequisite for achieving poverty and beneficiary satisfaction levels with various reduction and good service delivery. The Village Law will investments financed by the project. The evaluation is provide funds amounting to a value of Rp 306.7 trillion being conducted in 12 districts and 24 sub-districts, (US$ 21 billion) in the period from 2015 to 2019 for covering 160 infrastructure sub-projects financed by the development of such infrastructure. To ensure the the project and 120 RLF beneficiaries. achievement of poverty reduction and good service zz The recruitment, training, and mobilization of delivery, it is essential to build the capital stock of facilitators has proven to be significantly more difficult infrastructure in disadvantaged areas considering that than originally anticipated. The implementation most of villages in Indonesia do not have access to basic support team will continue to assist the MoV to review infrastructure in relation to health, education, and access TORs, recruitment guidelines, and standard operating to markets. For example, the average distance from a procedures and to conduct technical missions to house to primary school/village health center is about verify progress. 7-8 kilometers, which attenuates access to important social and economic opportunities. LESSONS LEARNED Villages need training and facilitation support to access The Village Law is new and distinct from PNPM in terms the sectoral inputs and expertise needed for village of its identity, scale, regulatory requirements, partnership frontline service delivery. One way to accomplish this is arrangements and potential for impact. Despite these by strengthening village cadres (Kader Pemberdayaan differences, a significant body of evidence has been Masyarakat Desa, KPMD) to assist in developing generated through the implementation over a period and implementing good governance systems; for of more than 15 years of PNPM Rural and the project’s example, by ensuring village discussion forums and predecessor, the Kecamatan Development Project, to complaint-handling systems are functioning. 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 46 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Targets Differ- (Cumulative) ence Unit Cumulative with cu- of Progress as mulative Result Mea- Base- Total Delivered in of Dec 31, target Comments on Indicators sure line Target 2012 2013 2014 2015 2016 2015 (only) 2015 for 2015 progress Project Development Objective: To provide technical support, guidance and supervision to the overall PNPM Rural activities through field-based moni- toring and support, governance, fiduciary, M&E. PPMD’s n/a PNPM Estab- Prepa- Joint Com- -Secre- -The Datacenter for TOR & SOP for The handover (MoV )1ca- Oper- lishment ration secre- pletion tariat closure Management Secretariat is Delays in of new MIS from pacity to ations of a Joint for Joint tariat of MIS for of PNPM Information finalized, the utiliza- MoHA to MoV has manage man- secre- secretar- estab- and PPMD is man- System (MIS) is secretariat is tion of not been done the vari- aged tariat at iat; man- lished CHS estab- aged available. established. new MIS properly, therefore ous PNPM by national agement over- lished. properly New Com- MIS redesign it has not be operations PPMD level; MIS review haul and final plaint Handling completed utilized yet. under its (MoV ) and CHS report System (CHS) but not yet mandate is over- submit- works effec- utilized enhanced hauled ted tively CHS redesign Training of completed. Trainers ( TOT ) workshop is completed. Secretariat is established Field su- n/a n/a Field PSF Imple- Ongo- Ongo- Ongoing PSF involves PSF continu- On track PSF will continue pervision, findings inputs men- ing ing actively in pro- ing to provide to provide policy system translate incorpo- tation viding inputs to support to and operational reviews into rated in support five govern- Directorate of advice to support & studies strategic the PNPM to the ment regula- Village Com- the transition help reform Roadmap; PNPM tions in order munity Em- period to imple- shape the agenda Studies imple- to support the powerment ment the Village policy for PNPM inform men- implementation (PMD- MoHA) Law, as well as the dialogue Rural; PNPM tation of the Village and new formulation of on PNPM PSF 2012- provid- Law. In addition, implement- PNPM Roadmap Rural and inputs 2014 ed, in- facilitator struc- ing agency, action plans and PNPM incor- design cluding ture and bud- Directorate of the facilitation Mandiri porated improve- action get estimation Development strategy for Village into the ments plans needed for VL and Village Law implemen- PNPM and implementation Community tation. Road- pilots has also been Empower- map provided. ment (PPMD- MoV ) 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 # of 4 p.a. 6 p.a 6 12 18 20 24 4 24 On track 2 Aide Memoire risk-based mis- (2011) delivered from supervi- sions implementation sion p.a. support missions held in February and October/ November 2015, 2 thematic missions held in January/ February, as well as August/Sep- tember 2015. Follow-up n/a n/a Quarterly Quarterly Quar- Quar- Quar- Quarterly Field findings Quarterly fol- On target In addition to on field terly terly terly on key aspects low-up with regular meetings, findings of implemen- PMD findings from the with PMD tation regularly field are shared. A analyzed and facilitation strate- discussed with gy to support the PMD and PNPM village Law is still stakeholders under discussion # & type of # of n/a n/a (as 4 6 9 - - 1 studies 9 studies on track An evaluation on thematic stud- needed) completed; PNPM beneficia- studies & ies 1 study on ries satisfactions, perfor- going economic impacts mance and quality of conduct- infrastructures are ed2 being conduct- ed starting in October 2015. The evaluation report will be ready in the first quarter of 2016. PNPM Rural Implementation Support | 47 KEY PERFORMANCE INDICATORS Targets Differ- (Cumulative) ence Unit Cumulative with cu- of Progress as mulative Result Mea- Base- Total Delivered in of Dec 31, target Comments on Indicators sure line Target 2012 2013 2014 2015 2016 2015 (only) 2015 for 2015 progress Practical - n/a New PMD/ PMD/ n/a n/a n/a n/a Tools finalized On track Done tools de- contract PPMD PPMD and shared veloped to monitor- staff staff with PMD improve ing tools trained trained contract com- and new and manage- monly tools new ment & used used to tools oversight improve used to contract im- manage- prove ment con- tract man- age- ment Impact - n/a Capacity EEE (En- EEE PMD PNPM Pre-ser- Refresher Policies and On track EEE implemen- of a more building hanced imple- informs fully in- vice Trainings for operational tation was dis- compre- and fa- Empow- mented the im- tegrate training facilitator on advices on the continued since hensive cilitation erment plemen- into the for all PNPM Closure Village Law is the government approach acknowl- Exper- tation Village village have been continued. announced the to edged iment) of the Law facilita- done in district Village Law. capacity in village proposal Village tors are and sub-district building & law finalized Law conduct- levels. facilitation ed. is demon- Refresher strated training for PNPM Closure and im- plemen- tation of Village Law is conduct- ed Component 2: Increased stakeholders involvement in project preparation and implementation support. Mis- 2 mis- 3 mis- 3 mis- 6 mis- 9 mis- - 0 missions p.a 7 missions p.a -3 p.a Joint gov- sion sions sions p.a sions p.a sions sions as of Septem- ernment p.a. p.a. p.a p.a - ber 2014 and donor review missions Intensive n/a - Monthly Monthly Month- Monthly Month- Intensive Intensive On target dialogue coordi- ly ly Monthly dialogue and dialogues with with PPMD nation thematic PPMD and (MoV ) and meetings workshops on government other gov- (+ad-hoc field facilitators/ stakeholders ernment work- consultants’ re- in terms of stakehold- shops to muneration and providing ers on discuss the supporting inputs and PNPM specific regulations for recommen- issues) the implemen- dations to the tation of the government Village Law policies to support PNPM/the Village Law have been intensively done Cus- Status n/a Custom- Join Cus- contin- - No activity was delays PPMD (MoV ) is still tomized ized ap- Papua tom- ue executed in focusing o then approach proach working ized 2015 closure of PNPM developed for group es- ap- and the transition for remote remote tablished proach to the Village areas (e.g. areas, dis- Law; therefore Eastern starting cussed, the customized Indonesia), with final- approached for starting Papua ized remote areas is with and delayed. Papua en- - dorsed by Pokja Pen- gendali 48 | 2015 PSF PROGRESS REPORT WINDOW TWO PNPM SUMMARY INFORMATION Status Task Team Leader(s) Executing Agency(ies) COMMUNICATIONS Closed Sri Kuntari (skuntari@ worldbank.org) Start Date to Closing Date The World Bank June 13, 2008 to November 26, 2015 Geographic Coverage Approved Budget National US$4,350,000 PROJECT RATIONALE AND 4 Developing accountability mechanisms to allow OVERVIEW communities and the public to express their Since its official launch in 2007, PNPM Mandiri has aspirations and opinions; to enable increased undergone a significant process of evolution and has been engagement on issues that impact their lives; scaled up dramatically. This scale up has been supported and to enhance their ability to hold the program’s by an intensive communications process through actors accountable. which communities, the media, government officials, academics, activists, development workers, project staff Over the period of nearly eight years during which the and other key stakeholders have been informed of the PNPM Communications Project was implemented before program’s progress and have been enabled to contribute it closed in May 2015, the project generated a significant to efforts to implement its activities. In order to assist body of work. The project was successful in meeting its the Government to meet the increased communications development objective, which was to strengthen PNPM’s needs related to the program, the PNPM Communication overarching communications and learning platform, Strategy was established in 2008 as a technical assistance which supports continuous program improvements ( TA) project. through information dissemination, capacity-building and enhanced knowledge sharing among all PNPM The development objective of the project was to stakeholders. During this period, the PSF Communications strengthen PNPM’s overarching communications and team provided technical support to the Government learning platform, which supports continuous program to develop an effective communications strategy. The improvements through information dissemination, project went far beyond its original mandate by creating capacity-building and enhanced knowledge sharing an environment in which frank and open dialogue and among all PNPM stakeholders. The project aimed to the exchange of information and experiences between achieve the objective by: stakeholders at all levels became the norm. 1 Working closely with media organizations and national and local civil society organizations to disseminate In addition to facilitating high-level meetings, such and monitor the latest news and information on as the PSF Joint Management Committee (JMC) PNPM; to enhance community-based monitoring; and meetings and the Communications Forum under the to facilitate community participation; PNPM Steering Committee (Pokja Pengandali), the 2 Building the capacity of Government institutions project worked to create opportunities for community involved in PNPM in the area of information and dialogue and sharing across communities through the communications; establishment of a network of 149 community radio 3 Supporting various stakeholders to codify, organize stations; to facilitate innovative uses of social media and share their knowledge through innovative tools to encourage frank dialogue and flows of information and approaches; and related to project performance between the head of PNPM Communications | 49 50 | 2015 PSF PROGRESS REPORT the Steering Committee, community facilitators, and and a knowledge sharing event with the Anti-Corruption project participants at the village level; and to share Committee (KPK). lessons learned from the implementation of PNPM through knowledge sharing and learning events involving Media Monitoring and Engagement more than 80 delegations from over 30 countries. The The project team maintained a social media presence project has produced an impressive list of high-quality up until August 2015. During the period that this publications, audio-visual presentations, media coverage presence was maintained, it facilitated a total of and other tangible outputs, listed in the annex. However, 22,500 conversations on issues related to PNPM, with the project’s non-tangible outcomes in terms of learning, approximately 21,600 Twitter followers. capacity building, creating a positive public image and awareness of PNPM, and contributing to program The project team continued to monitor and media improvements in response to the inputs and feedback throughout June 2015, documenting a total of collected from stakeholders will remain its most important 1,617 articles on issues related to PNPM Mandiri, of which and lasting achievement. 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 PROGRESS IN 2015 derived from sources including nine national newspapers, Throughout 2015, the project team focused on the closure four national magazines, 34 local printed magazines of the remaining project activities; on integrating the and more than 50 local online news portals. The most three members of staff remained at the end of December frequently discussed issues related to the continuation 2015 into the PSF Secretariat; and on supporting the of PNPM Mandiri and PNPM Rural and to the position of Government in the process of transition from PNPM to PNPM facilitators in the context of the transition to the Village Law implementation. Activities listed here include implementation of the Village Law. those financed through the Trust Fund until its closure in May 2015, and subsequently implemented by the South-South Knowledge Exchanges PSF Secretariat. In 2015, the PSF Secretariat became responsible for the management of knowledge exchanges in order to Support for the Government PNPM ensure the continuity of support for the exchange of Communication Strategy knowledge between Government agencies, communities The project provided limited support to the Coordinating and international delegations. Throughout the year, two Ministry of Human Development and Culture (Menko South-South Knowledge Exchanges were conducted PMK); the Ministry of Villages, Disadvantaged Areas to share knowledge on issues related to community and Transmigration (MoV ); and the Ministry of Home empowerment and its institutionalization in the context Affairs (MoHA) in the area of communication issues of the implementation of the Village Law, with these related to the transition from PNPM to the Village Law exchanges involving visiting delegations from Myanmar implementation by providing assistance to develop and Timor Leste. The team also prepared for exchanges materials for the socialization and implementation of on similar issues involving delegations from Papua the Village Law. Materials produced included videos, New Guinea, India, Afghanistan and JICA. The team also pamphlets and brochures, and training materials for facilitated a field mission and learning visit for the World facilitators. The project also supported engagement with Bank Senior Director of Gender Cross-Cutting Solutions the mass media through the preparation of press releases, Area (CCSA) and for the Practice Manager of East Asia and the supply of workshop backdrops and the provision the Pacific (EAP) Social Development. of website content. An infographic video related to the implementation of the Village Law was prepared and Publications disseminated through the PSF website, with this video Under the PSF transition strategy, in 2015, the Monitoring, attracting more than 5,000 unique visits with viewers Evaluation and Special Studies project became spending an aggregate total of 10,800 minutes viewing responsible for printing and publications activities, the video. Overall, the team engaged with more than while the PSF Secretariat became responsible for the 47 national and local mass media outlets, and 50 local management of the PSF library. The library received online news portals. The project also supported several 39 new titles, including 11 titles published by PSF; one key events, including a launch meeting that involved video published in cooperation with the Indonesian 12,000 Village Law facilitators; workshops and conferences; Government; and 27 publications from external sources, PNPM Communications | 51 including regulations to support the implementation requiring strong interpersonal skills and the investment of the Village Law and other reports and studies on of time and resources to engage in frequent outreach the implementation of both PNPM and the Village Law. activities, to conduct formal and informal meetings, to Published items have been documented and listed facilitate learning events, and to produce publications. on websites located at www.psflibrary.org and www. The project team worked hard to build bridges to ensure pnpm-support.org. The library responded to an average of good communication between a wide range of PNPM five requests for information each month from colleagues stakeholders, especially between stakeholders from the in international development agencies, government former Coordinating Ministry for People’s Welfare, the representatives, and academic/research institutions. The Ministry of Communications and Informatics, MoHA library also responded to request for publications and and the donors through these various engagements. information related to events and meetings conducted As a result of this approach, the Government’s sense or supported by the full range of projects in the PSF of ownership over the program was strong. It also portfolio. As the library no longer provides a public led to tangible outcomes such as the provision of reading area or disseminates printed publications, the in-kind support from the Ministry of Communications websites located at www.pnpm-support.org and www. and Informatics in the form of the allocation of free psflibrary.org are the main outlets for information broadcasting slots for PNPM since 2012. related to recent PSF activities and knowledge products. Knowledge products are also disseminated digitally The adoption of innovative technologies as through a number of other platforms provided by they emerge: The period during which the PNPM the World Bank, including Imagebank, the World Bank Communication project was implemented coincided external site, the Open Knowledge Repository and CDD with a time of phenomenal growth in Indonesia’s use of Community of Practice. 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 FUTURE PLANS could not have been predicted at the point at which the With the PSF Secretariat now fully responsible for project was first conceived, the project team recognized communications functions, the scope of activities will be that this growth created a means to reach a broad base substantially scaled down and focused more on meeting of project facilitators and community members across the the needs of PSF task teams. However, South-South country through a communications network that allowed Knowledge Exchange will continue to be an important these grassroots stakeholders to communicate with mechanism for the Government and communities to share each other and to pose questions and provide feedback the significant body of knowledge generated through the directly to government officials and policy-makers 15 year period of implementation of PNPM Mandiri and at the highest level. These feedback mechanisms its predecessor, the Kecamatan Development Project. The contributed to improving project management and PSF Secretariat will continue to manage the library, while implementation quality. 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, 52 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Differ- ence with Cumulative cumu- Unit of Delivered Progress as lative Targets (Cumulative) Result Mea- in 2015 of Dec 31, target for Comments Indicators sure Baseline Total Target 2013 2014 2015 (only) 2015 2015 on progress Project Development Objective: To strengthen PNPM’s overarching communications, social accountability and learning platform which supports con- tinuous program improvements through information dissemination, development of social accountability mechanism, capacity-building and enhanced knowledge sharing among all PNPM stakeholders Strengthen n/a PNPM The public’s n/a Level of famil- Level of Provided Provided me- On track public under- known but understand- iarity and un- familiarity media dia coverage standing of limited ing of and derstanding of and under- coverage in in conven- and support to public support the public, key standing of convention- tional media, PNPM Mandiri under- to PNPM public figures the public, al media, community standing increased and champions key public community media and of empow- through are increasing figures and media and social media, erment information through public champions social media, contributing principles dissemina- diplomacy are increas- contributing to improved & process tion and efforts ing through to improved public under- public diplo- public public un- standing and macy efforts diplomacy derstanding support for efforts and support transition to for transition Village Law to Village Law Enhance n/a n/a KS enhanced Continuous Knowledge Knowledge Learning Learning On track knowledge through on- improve- sharing is sharing is events and events and sharing (KS) going use of ment improved improved visits con- visits imple- among PNPM communica- through the through the tinued on mented; ana- stakeholders tion channels ongoing use of ongoing a reduced lytical reports and learning social tools by use of social scale, shift- produced and events/visits PNPM actors tools by ing focus to disseminated PNPM actors Village Law transition. Enhance # of Com- Various Community Community Community Community Community On-track Social media PNPM’s trans- com- munity communica- radio and radio and radio and radio and radio engaged, staff contract parency and muni- radio in 3 tion channels social media social media social media social media social media concluded social account- cation provinces being used being used being used being used being used effectively August 2015. ability by using chan- engaged as feedback as feed- as feedback as feedback as feedback used, creative Remaining communication nels to be the and educa- back and mechanism; mechanism; and educa- events 3 staff now channels as being feedback tion tools on education creative events creative tion tools; being held, integrated community used as and GAC; online tools; online being held events Corruption Corruption into PSF Sec- feedback tools feed- education mechanism mechanism to educate being held Eradication Eradication retariat as well as tools back tools on developed launched community on to educate Commis- Commis- to educate and ed- GAC and im- GAC community sion (KPK) sion (KPK) is community on ucation proved on GAC is engaged engaged as governance tools on to conduct a partner on and anti-cor- GAC an outreach corruption ruption (GAC) event. prevention Component 1: Public Outreach and publication production/dissemination Media or- # of 23 30 30 30 30 0 44 On target ganizations media participating in organi- field visits zations/ year PNPM publicity # pub- 25 pub- 35 publicity 27 publicity 30 publicity 30 publicity 39 publicity 154 publicity On target *Publicity (free published and licity* # licity and 27 adver- advertise- advertised in adver- 12 adver- tisements ment) a variety of tise- tisement media ment Community # of 149 com- 150 commu- 150 150 commu- 150 commu- 149 commu- 149 commu- -3 Three com- media engaged com- munity nity radio commu- nity radio nity radio nity radio nity radio sta- commu- munity radio in information munity radio sta- stations and nity radio stations and stations and stations and tions, 15 JRK in nity radio stations with- dissemination media tions and 15 JRK in 15 stations and 15 JRK in 15 15 JRK in 15 15 JRK in 15 15 provinces stations drew from the & commu- and 9 JRK in 9 provinces 15 JRK in 15 provinces provinces provinces and national program due nity-driven com- provinces provinces level JRK to technical monitoring munity problems. radio associ- ations (JRK) en- gaged in # prov- inces PNPM Communications | 53 KEY PERFORMANCE INDICATORS Differ- ence with Cumulative cumu- Unit of Delivered Progress as lative Targets (Cumulative) Result Mea- in 2015 of Dec 31, target for Comments Indicators sure Baseline Total Target 2013 2014 2015 (only) 2015 2015 on progress Social Media # of n/a 5000 en- 3000 4000 engage- 4000 3000-5000 3000-5000 Over Social media engagement engage- gagement/m engage- ment/m, 8000 engage- engage- engagements target staff contract ment & 10,000 ment/m, members in ment/m, ments per per month, concluded in monthly members in 6000 group, 800 8000 month, 21,600 Twitter August 2015  # of groups, 1000 members in followers in members in 21,600 Twit- followers, mem- followers in group, 500 profile group, 800 ter followers, 22,500 social bers in profile followers in followers in 22,500 social media discus- social profile profile media dis- sions media cussions Media Moni- # of 49 daily 51 conven- 51 51 51 47 conven- 47 conven- -583 Contract toring media media tional media 2,000 2,200 2,200 tional media tional media + articles for media moni- 1,300 & social + over 50 over 50 online monitored monitoring tored & articles media, online me- media & social activities articles annually 2,200 articles dia & social media; 1617 concluded in ana- per year media; 1617 articles June 2015 lyzed articles for PNPM’s over- sight bodies Publications/ # of 25 titles 30 titles & 30 & 5,000 30 & 5,000 30 & 5,000 39 titles & 0 159 titles + 9 titles Printing & Reports titles & 20,500 5,000 exem- exemplars & 39,700 publications exem- exemplars plars per year exemplars for moved to plars 4 years Monitoring dissemi- & Evaluation nated team in 2015, Librarian integrated into PSF Sec- retariat Component 2: Learning/knowledge sharing events/initiative Partnerships # of 4 12 10 12 12 2 14 Over Support for with CSOs, active target PNPM transi- Academia & partner- tion to Village interest groups ships Law. Learning # 3 annually 10 annually 5 7 7 6 35 in total Over  Support for events/work- events/ target PNPM transi- shop/exhibi- work- tion to Village tions shops/ Law. exhibi- tions Visits/study # of 4 annually 5 annually 5 incoming 5 incoming + 1 5 incoming 3 36 incoming Over Interest in tours from visits +1 GOI visits + 1 outgo- outgoing + 1 outgo- + 3 outgoing target integration foreign delega- to foreign ing ing annually of PNPM tions countries principles into Village Law. Visits from high # of n/a n/a More than 5 More than 5 More than 5 2 23 from 2013 Over level officials of visits to 2015 target stakeholders PSF website & # of n/a 10,000 visi- 7,000 10,000 10,000 400 video 707 visitors per -9303 The halt in online Library visitors tors monthly visitors per month visitors per PNPM block functional month and month grants and 307 website planning visitors per activities month resulted in a decline in website visitors. Village Law informa- tional video generated good interest. 54 | 2015 PSF PROGRESS REPORT WINDOW TWO CREATIVE SUMMARY INFORMATION Executing COMMUNITIES II Status Task Team Leader(s) Agency(ies) Closed March Natasha Hayward Yayasan Kelola 31, 2015 (nhayward@ (CCII) worldbank.org) Start Date to Closing Date April 24, 2013 to March 31, 2015 Geographic Coverage Approved Budget 44 villages in 20 districts across five US$2,264,000 provinces PROJECT RATIONALE Immediately prior to the planned scale-up of pilot AND OVERVIEW activities in Phase 2 of this project, the World Bank In 2007, the Indonesian Government launched PNPM transferred responsibility for the support for a number Mandiri, building on a predecessor program, the of activities, including CCII, to a Managing Contractor Kecamatan Development Program (KDP). The rapid scale (MC) funded by DFAT. The grant was restructured to up of the program to achieve nationwide coverage that enable planning for a modified proofing of the concept this transformation involved resulted in significant strains in the second phase to be conducted within a shortened on the quality of facilitation, affecting the facilitator timeframe, with the number of locations reduced from recruitment process; the management of facilitators’ 50 to 24 and with the planned closure date of Phase performance; and the quality of oversight and training. In 2 brought forward from November 30, 2015 to March addition, a number of studies concluded that community 31, 2015. 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 PROGRESS IN 2015 diminishing the voice of the community, particularly its The project made good progress towards the poorest and most marginalized members. The first phase achievement of its development objective in terms of of the Creative Communities project (CCI) was established all three of the project’s components, these being (1) in November 2007 as a pilot project to determine whether community-based cultural activities; (2) capacity building; PNPM outcomes could be improved by providing small and (3) monitoring and evaluation. grants to villages in three provinces to conduct cultural 1 Community-based cultural activities: Beginning activities from an open menu, with these activities in late December 2014 and extending into March intended to enhance community participation and the 2015, these activities were conducted in 33 villages community empowerment process. The current phase in 17 districts in East Nusa Tenggara (NTT ), Bali, and of the project, CCII, builds on this earlier experience by West Java and involve the socialization of the project’s awarding a grant to a civil society organization through objectives; the identification of target groups, in a competitive process to develop and test the delivery collaboration with PNPM workers, village leaders of targeted cultural activities to diverse communities in and the wider community; the establishment of an effort to strengthen the voice and participation of the creative community groups (CCGs); the mapping of poor and marginalized in village planning, with these key development concerns and processes to address activities consisting primarily of theater for development them; the development of stories and themes based and participatory videos. CCII was implemented as a grant on the analysis; preparation for and the staging of financing operation linked to PNPM Rural IV (IBRD Loan theater performances or video screenings, with the Number 80790). participation of other cultural workers and village leaders, PNPM workers and members of the general The development objective of the project was to improve community; the holding of post-performance focus the ability of villagers, especially poor and marginalized group discussions with key stakeholders to discuss people, to participate actively in PNPM processes using potential solutions to the communities’ concerns; the cultural expressions in project locations. 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 session. Four theater facilitators in West Java groups to enable them to carry these plans out. participated in two reflection workshops held 2 Capacity-building: Most of the capacity-building in the period from January to March 2015. Final activities related to the theater for development reflection sessions were held with facilitators and participatory videos were completed by late from Bali and NTT in Bangka in January 2015, with 2014. These activities involved 68 participants, similar events being held for facilitators from West including PNPM facilitators, creative empowerment Java in Bali in March 2015, with these events being cadres (Kader Pemberdayaan Kreatif, or KPKs), field conducted to generate lessons learned both at coordinators and technical specialists, with all of these the organizational and individual levels. A final activities supporting the activities implemented under PSF/Kelola reflection session was held at the end Component 1 of the project. of March 2015 to discuss preliminary evaluation findings and to generate recommendations for Six sub-grantees in Bali, NTT, and West Java received the future. hands-on training and support to develop proposals zz Kelola prepared an evaluation on the relevance, and design programs. These sub-grantees were also efficiency, effectiveness and sustainability of provided with support to build their capacities in the sub-grant activities. This evaluation concluded areas of financial and operational procedures and of that CSOs or community organizations in remote the reporting requirements of the project. areas generally have very limited organizational, targeting, documentation or accounting A final workshop was held in DI Yogyakarta in March capacities, and thus sub-grants to these 2015 to enable participants, implementers and other organizations should include ample time and stakeholders to reflect on best practices and lessons resources for capacity building. learned from the theater for development activities. zz Field facilitators, coordinators and KPKs produced Twenty participants, including all of the theater and submitted large numbers of reports to the facilitators, worked to formulate recommendations for Yayasan Kelola management team to record future empowerment and creative theater processes. their reflections and to document lessons 3 Monitoring and evaluation. learned from their field activities, with a review zz In March 2015, the Yogyakarta-based research of all these reports incorporated into the Project institute MIGUANI designed and implemented a Completion Report. perception survey in 24 target villages. This process zz Yayasan Kelola finalized the Project Completion involved a household survey, with interviews with Report and submitted it to the World Bank in 665 participants in the activities implemented May 2015. under the project, in addition to 24 heads of zz The World Bank’s Implementation Completion villages, 24 KPKs and 52 PNPM workers, all of whom Report (ICR) was drafted in June 2015, following were surveyed to determine their perceptions which a consultative process with stakeholders regarding the project and its impact. was conducted. The final draft was submitted in zz Five ethnographers and anthropologists were September 2015. recruited to prepare 11 case studies on the creative empowerment process and six case studies on sub-grants. The compilation of case FUTURE PLANS studies is available in English and Indonesian. Together with representatives of the Ministry of Home zz A number of events were held to stimulate Affairs, the implementing agency for PNPM Rural, the reflection both to improve ongoing operations project team discussed the project’s training modules, and to generate recommendations for future outputs and evaluations with representatives of the creative communities’ projects. These events newly-established Ministry of Villages, Disadvantaged included an internal Yayasan Kelola Learning Areas, and Transmigration (MoV ) to facilitate their Workshop in December 2014 to formulate incorporation into inclusion strategies at the local level. lessons learned and recommendations. Mid-term reflection sessions were held with field facilitators The Australian Department of Foreign Affairs and Trade’s at the midway point in their three-month stays (DFAT ) Managing Contractor, KOMPAK, is now mandated in the villages to which they were assigned. In with the responsibility for the management of activities NTT, the eight KPKs also attended this reflection related to the project and is looking for mechanisms to Creative Communities II (CCII) | 57 incorporate the principles and lessons learnt through The end-of-project survey showed that creative the implementation of the project into Village Law approaches were effective in increasing the agency implementation and frontline service delivery support to of creative community group members, with this the MoV. 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 LESSONS LEARNED participation as a right. The project demonstrated that creative approaches are highly effective as a means to engage women, youth Phase 1 of the project provided evidence that when and poorer in marginal members of the community creative activities are integrated into planning processes, into community planning processes. More than half creative approaches are highly effective as a means to of the direct participants in CEP activities were female, increase the level of attendance at formal meetings; while in the Phase 2 proof-of-concept trials, 43 percent to motivate people to participate; to enable poorer of participants were classified as poor; 72 percent as and marginalized members of communities to express marginalized; and 36 percent as youth under the age of their opinions and aspirations and thereby to influence 17. In particular, studies and evaluations showed that decision making processes. However, it also showed that youth had often previously been excluded from village the achievement of these goals requires joint planning planning processes and were attracted by the opportunity by and a high level of coordination stakeholders, and an to develop their skills in the area of new technology adequate timeframe to implement activities. (especially through activities involving video-making). 58 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Targets Differ- (Cumulative) ence with Cumulative cumu- Unit of Progress as lative Result Mea- Delivered in of Dec 31, target Comments on Indicators sure Baseline Total Target 2013 2014 2015 2016 2015 (only) 2015 for 2015 progress Project Development Objective: Increase in public participation in village planning processes in project locations Project - - Project Project design Project re- Phase 1 Phase 1 Pilot Formal Due to tran- design design in Project Pa- structured to Extension completed, launch sition plan, complet- completed & per approved reflect transi- completed Extension not com- formal launch ed & CCII CCII formally by World Bank tion plan, plan completed pleted and scale up formally launched approved with revised will move to launched design future activ- ities under the Managing Contractor Pilot # peo- 20-40 50-100 50-100 50-100 50-100 No 2015 70-200 people Based on indicates ple per village fora Phase 1 data improve- PNPM due to early ments village closure of in PNPM forum PNPM public par- ticipation Pilot - Poor Poor and Poor and Poor and Poor and Evaluation of On Findings based indicates people and marginal- marginalized marginalized marginalized Pilot and Ex- target on evaluation that poor marginal- ized people people are people are people are tension shows of Phase 1 & mar- ized groups are able to able to convey able to convey able to convey that CCII has and Extension ginalized have limit- convey their their needs to their needs to their needs to improved survey results people ed access needs to policy-makers policy-makers policy-makers access of the are better to deci- policy-mak- through CCII through CCII through CCII poor and mar- able to sion-mak- ers through cultural activ- cultural activ- cultural activ- ginalized to raise their ing in CCII cultural ities ities ities decision-mak- concerns PNPM Rural activities ers Consulta- # of 0 10 8 10 10 6 24 14 - tions on consul- lessons tations from CCII Field as- - - Field Field assess- Field assess- Field as- Field assess- On Field assess- sessment assessment ment com- ment com- sessment ment com- target ment findings to inform completed pleted pleted complet- pleted informed design ed design of CCII Phase 1 Full- - - Full-fledged Project Oper- Project Oper- Project Project Oper- Project Oper- Hando- Original plan fledged design and ation Manual ation Manual restruc- ation Manual ation Manual ver of of full project design budget de- and Sub-Grant and Sub-Grant turing to and Sub-Grant and Sub-Grant com- scale up was that can veloped and Manual de- Manual de- reflect Manual de- Manual de- pleted restructured operate at ready for veloped and veloped and transition veloped and veloped and Manuals and any future scale implemen- approved by approved by of proj- approved by approved by to GOI scale up will tation World Bank, World Bank, ect from World Bank, World Bank, and MC be under MC. Project Paper Project Paper World handed over handed over approved by approved by Bank to to GOI and MC to GOI and MC World Bank World Bank MC Pilot # of 0 11 7 53 69 33 86 +17 Restructured cultural culture Phase 1 Exten- activities activi- sion increased conducted ties locations to inform from 16 to 24 design of sub-districts, CCII and advanced the closing date to March 31, 2015. Train- # 0 40 0 68 6 74 +34 Most training ing on people completed in Creative trained 2014. Six NGO Approach- Sub-grantees es trained in 2015. Monitor- - - Phase 1 Tools for Phase 1 evalu- Evaluation de- Evaluations of Evaluations ing and evaluation monitoring ation complet- sign to cover Phase 1, Phase adapted to evaluation completed, developed; ed, monitoring Phase 1 Exten- 1 Extension, capture results framework monitor- Evaluation of and evaluation sion, Baseline Baseline over period deter- ing and CEP activities framework for survey, Survey, of World Bank mined evaluation completed full project Perceptions Perceptions oversight. framework developed survey, Project Survey, Project Incorporated for project Completion Completion into handover developed Report, ICR Report, ICR to GOI and MC. Creative Communities II (CCII) | 59 Original Target Actual Value Values (from Achieved at approval Formally Revised Completion or Indicator Baseline Value documents) Target Values Target Years Indicator 1: Increase in public participation in village planning processes in project locations Value 50% 200-500% quantitative or (Phase 1) qualitative) Date achieved 03/31/2015 Comments Phase 1 villages (39% of expenditures) experienced increases of 200-500%. Due to early closure (incl. % of PNPM activities by GoI, there were no planning processes in Phase 1 Extension villages (61% achievement) 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 50% 93% quantitative or (Phase 1) qualitative) Date achieved 03/31/2015 Comments Women’s participation increased by 93% in Phase 1 locations. Phase 1 Extension had no (incl. % planning processes due to early closure of PNPM activities by GoI, but 52% of beneficiaries achievement) 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 50% N.A. quantitative or qualitative) Date achieved 03/31/2015 Comments Phase 1 evaluation data did not identify marginalized people. Phase 1 Extension had no PNPM (incl. % planning processes due to early closure of PNPM activities by GoI, but 72% of beneficiaries achievement) 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 50% 268% quantitative or (Phase 1) Qualitative) Date achieved 03/31/2015 Comments Participation of the poor increased by 268% in Phase 1 locations. Phase 1 Extension had no (incl. % planning processes due to early closure of PNPM activities by GoI, but 45% of beneficiaries achievement) 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 0 70% 53% quantitative or qualitative) Date achieved 05/30/2013 03/31/2015 Comments 53% of Phase 1 Extension beneficiaries reported increased understanding of PNPM and village (incl. % planning processes, with another 28% stating “I don’t know” – possibly reflecting confusion over achievement) the ending of PNPM and uncertainty over processes under the Village Law. Indicator 6: Women beneficiaries with increased PNPM understanding Value 0 50% 55% quantitative or Qualitative) Date achieved 05/30/2013 03/31/2015 Comments 55% of Phase 1 Extension women beneficiaries reported increased understanding of PNPM and (incl. % village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting achievement) confusion over the ending of PNPM and uncertainty over processes under the Village Law. Indicator 7: Youth beneficiaries with increased PNPM understanding Value 0 50% 42% quantitative or qualitative) Date achieved 05/30/2013 03/31/2015 60 | 2015 PSF PROGRESS REPORT Original Target Actual Value Values (from Achieved at approval Formally Revised Completion or Indicator Baseline Value documents) Target Values Target Years Comments 42% of Phase 1 Extension youth beneficiaries reported increased understanding of PNPM and (incl. % village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting achievement) confusion over the ending of PNPM and uncertainty over processes under the Village Law. Indicator 8: Marginalized beneficiaries with increased PNPM understanding Value 0 50% 40% quantitative or Qualitative) Date achieved 05/30/2013 03/31/2015 Comments 40% of Phase 1 Extension marginalized beneficiaries reported increased understanding of (incl. % PNPM and village planning processes. Overall, an average 28% stated “I don’t know” – possibly achievement) reflecting confusion over the ending of PNPM and uncertainty over processes under the Village Law. Indicator 9: Poor beneficiaries with increased PNPM understanding Value 0 50% 45% quantitative or qualitative) Date achieved 05/30/2013 03/31/2015 Comments 45% of Phase 1 Extension poor beneficiaries reported increased understanding of PNPM and (incl. % village planning processes. Overall, an average 28% stated “I don’t know” – possibly reflecting achievement) confusion over the ending of PNPM and uncertainty over processes under the Village Law. Indicator 10: Number of people trained Value 0 600 1531 quantitative or qualitative) Date achieved 05/30/2013 03/31/2015 Comments 22 PNPM facilitators, 31 CCII facilitators, 24 CCII village Creative Empowerment Cadres, and (incl. % 1,300 village cultural workers. achievement) Indicator 11: Training module and tools for PNPM and Village Law implementation Value 0 Modules and tools 4 quantitative or developed qualitative) Date achieved 05/30/2013 03/31/2015 Comments Two manuals for the Creative Empowerment Process (one on theater for development and (incl. % another on participatory video), one manual for effective facilitation using creative approaches, achievement) and one advanced module on sustaining growth and continuation of creative community groups. Indicator 12: Number of cultural workers Value 0 400 1302 quantitative or qualitative) Date achieved 05/30/2013 03/31/2015 Comments 1302 local cultural workers implemented cultural activities linked to village planning. The (incl. % project attracted and mobilized far more cultural workers than expected at the village level to achievement) partake in its activities. Village Training Project | 61 WINDOW TWO VILLAGE SUMMARY INFORMATION Status Task Team Leader(s) Executing Agency(ies) TRAINING Closed Bambang Soetono (bsoetono@worldbank. org, from April 1, 2015) The Directorate General for Village Government Guidance (Ditjend Bina PROJECT Pemerintahan Desa), The Ministry of Home Affairs, and the World Bank Start Date to Closing Date March 25, 2014 to December 31, 2015 Geographic Coverage Approved Budget National US$1,645,000 PROJECT RATIONALE AND PROGRESS IN 2015 OVERVIEW The ability of the implementing agency, the Ministry In January 2014, the Indonesian President signed the of Home Affairs (MoHA), to implement the project in Village Law (Undang-Undang 6 Tahun 2014 Tentang 2014 and 2015 was negatively impacted by a broad range Desa) into effect, which provides increased authority of institutional changes that resulted from the political and resources to villages in the context of a broader transition in late 2014. framework to optimise the impact of decentralization and poverty reduction initiatives. With village governments With the establishment of a new ministerial structure, now empowered to manage a higher value of funds to the responsibility for the implementation of PNPM Rural provide public services, there was a perceived need to was transferred from MoHA to the new Ministry of Village, improve the capacities of these governments and to Disadvantaged Areas and Transmigration (MoV ). As a establish accountability mechanisms to ensure that they result of this transfer, there was significant confusion provide optimal services to the communities they serve. over the demarcation of responsibility for issues that With the current low level of capacities and the lack of had previously been wholly the responsibility of MoHA established accountability mechanisms, addressing these and which now appeared to be split between the two gaps has required substantial investments. agencies. The new institutional arrangements took some time to evolve, with clarification provided by Presidential The objective of the VTP was to support a Government Regulation No. 11/2015 on the Organizational Structure capacity development program to improve the core of the Ministry of Home Affairs (MoHA), and Presidential competencies of village authorities, and thereby to Regulation No. 12/2015 on the Organizational Structure of prepare them for the increased responsibilities that will MoV. Under these regulations, MoHA remains responsible accompany the increased inflows of resources under the for matters related to village government, while MoV is new decentralization framework. The project consists of responsible for matters related to village development three components, as follows: (i) reviewing and revising and community empowerment. the Government training program and modules for village authorities; (ii) enhancing the capacities of governmental Despite these Presidential Regulations, issues related to training agencies and selected non-governmental the assignment of responsibility for the implementation organizations to ensure they can deliver quality training of VTP remained unresolved until May 2015. At that at scale; and (iii) strengthening the policy framework point, the Ministry of Finance (MoF), MoV and MoHA and implementing regulations related to village capacity agreed that VTP would remain under MoHA’s mandate. building in such a way that they support the realization of However, to date, the administrative details for grant the intended objectives of the Village Law. The program management have not yet been resolved, and the grant was intended to add value by improving the quality of was not been inserted into MoHA’s budget plan for 2016, existing training programs and by mainstreaming PNPM despite the issuance of the required letter from MoHA to principles and training materials into regular village MoF confirming they would revise the budget to include government capacity development programs. the VTP. 62 | 2015 PSF PROGRESS REPORT The first grant disbursement was conducted in October project’s transition time, resulting in the failure to achieve 2014, after MoHA secured approval to include VTP the majority of the project’s targets. Projects of this type activities in the revised DIPA for 2014, and to include the should be closely monitored and adapted, especially planned procurement of an administrative service firm in the context of a post-ministerial restructuring, so to manage staff in the project implementation unit in that disbursements can be effectively utilized and the the final quarter of 2014. However, due to new national transition takes place in as smooth a manner as possible. procurement guidelines, it not yet been possible to procure the services of the administrative service firm. Although it is hoped that the project may continue This was further complicated by a decision to block the in a new form under MoHA, the failure to manage the 2015 DIPA for MOHA’s Directorate General for Village transition underscores the need to better understand the Government Guidance until the new MoV finalized the internal communication dynamic between stakeholders. new organizational structure mandated under Presidential In addition, communicating clear and comprehensive Regulation No. 15/2015 and recruited new Echelon I and expectations is key to effective implementation. 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 Village Training Project | 63 KEY PERFORMANCE INDICATORS Targets Cumu- Difference (Cumulative) Deliv- lative with cu- Unit of ered in Progress mulative Result Mea- Base- Total 2014 as of Dec target for Comments on prog- Indicators sure line Target 2013 2014 2015 2016 (only) 31, 2015 2015 ress 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 0 10 10 10 0 3 -7 agencies that have incorpo- rated the improved training design and modules into their training program/ agenda # of laws/regulations/guide- 0 5 5 5 0 2 -3 lines developed and/or revised with input from the project to support village institutional development Component 1: Adoption of the improved village training design and plans into the regular GOI training program # of village training modules 0 6 10 10 0 6 -4 PMD used APBN revised (national budget funds) and off-budget development partner resources to deliver this activity. # of jurisdictions where 0 10 10 10 8 11 +1 PMD used ABPN the training materials are (national budget piloted 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 n/a 25 25 25 0 3 -22 institutes have received capacity building on the improved village training programs # of NGOs/CSOs involved in 0 50 50 50 0 33 -17 the development of village training design/plans # of operational master 0 500 500 500 0 210 -290 Grand Master Trainers trainers 36; Master Trainers 21 Component 3: Strengthened policy and mechanism in village capacity building to support PNPM Road Map and village institutional develop- ment # of policy recommenda- 0 10 10 10 0 2 -8 tions on village institutional development produced and discussed with relevant parties Action plan for the adoption 0 Govern- - - and delivery of improved ment village training programs by rollout of the Government training begins 64 | 2015 PSF PROGRESS REPORT WINDOW TWO PRO-POOR SUMMARY INFORMATION Status Task Team Leader(s) Executing Agency(ies) PLANNING, Closed Bambang Soetono (bsoetono@worldbank.org, from April 1, 2015) Kemitraan Bagi Pembaruan Tata Pemerintahan BUDGETING (Partnership for Governance Reforms) Start Date to Closing Date AND May 26, 2013 to June 30, 2015 Geographic Coverage Approved Budget MONITORING National US$1,665,000 (P3BM) PROJECT RATIONALE of technical assistance to selected district governments; AND OVERVIEW the mainstreaming of a new monitoring tool for local The objective of the project is to improve the poverty Bappeda offices and communities to assess district targeting of local government expenditures and to technical agency’s actual implementation against improve local government responsiveness to community planning and budgeting; and the design of a monitoring needs through the scale-up and institutionalization and evaluation framework. 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 PROGRESS IN 2015 data can make planning decisions more pro-poor and The project was closed on June 30, 2015 as scheduled. A responsive to local needs. P3BM is aimed at ensuring that final implementation support mission was carried out in local government officials across the country have the April 2015, with this mission finding that, cumulatively, information and instruments to produce work plans and 85 local governments had adopted poverty targeting in budgets that are sensitive to socio-economic inequalities; annual development planning, exceeding the project’s that they have the tools to monitor and evaluate local target by 25. Of the 85 local governments that had government performances related to the provision of adopted the P3BM tools, 73 local governments had public services for the poor; and that citizens also have used these tools to formulate local budget plans and access to monitoring tools to ensure that such plans are 12 local governments had used them to analyze local implemented appropriately. data related to MDGs. After being trained in P3BM, local governments often allocated increased funds in their The P3BM project was originally supported by the annual provincial/local government budgets (Anggaran Asian Development Bank (ADB) and United Nations Pendapatan dan Belanja Daerah, APBD). The measure used Development Program (UNDP) in the period from 2007 to to determine whether local governments had adopted 2009. Since 2010, it has been managed by Bappenas’ the tools was not standardized, which resulted in some Poverty Reduction Unit, which requested support from inconsistencies. In some cases, “adoption” referred to using the PSF to build capacities and to conduct an initial several of the P3BM tools, while in others, it meant using series of pilots under the Local Government Capacity only one aspect of the toolkit. In addition, based on data Development project. Based on positive outcomes from 15 sampling locations, the mission found that the from these pilots, Bappenas requested that P3BM be proportion of direct local government budgets allocated scaled-up and implemented under a separate trust fund. for MDG targeting and poverty-related spending stood at The project was approved by the Joint Management an average of 9.3 percent. Committee (JMC) in April 2012, with Kemitraan appointed to serve as the implementing agency in coordination Fifteen P3BM provincial-level clinics were established and with Bappenas. Project activities included the provision 74 sub-national MDG data sets were improved in 2015. of provincial cascade training for master trainers; the These were both significant achievements that exceeded establishment of provincial P3BM joint secretariats the established targets. Although no data was collected supported by the national P3BM Secretariat; the provision from civil society organizations (CSOs) using P3BM Pro-Poor Planning, Budgeting and Monitoring (P3BM) | 65 instruments to track district expenditures, nine CSOs and tailored to recognize the varying strengths of each community groups were trained in P3BM tools and used stakeholder in terms of their ability to add value, in these tools to monitor local expenditures. order to avoid the gradual marginalization of the implementing agency. Although the project established a target of implementing zz An official agreement or Memorandum of a business plan for the replicability and sustainability of Understanding (MOU) between national government P3BM, this plan had not been implemented by the end and local governments should be formulated prior of the period of the grant. Nevertheless, Bappenas has to the commencement of national/local government expressed its commitment to supporting P3BM after collaboration. This agreement should clearly outline the end of the present grant period and to adopting it the roles and responsibilities of all stakeholders and for implementation in the context of the Village Law to provide a clear framework for resource allocations, achieve improvements in frontline service expenditure. including commitments to staff capacity building; Throughout the project, there was a considerable degree the release of staff to support P3BM implementation; of cost sharing with local governments, with more than and support for local data forums. Amongst other half of the districts trained (54 districts and cities) using benefits, this may lessen the impact of problems their own APBD budgets by the end of the project. caused by the frequent rotation and reassignment of government staff. zz The project’s capacity-building approach should be FUTURE PLANS reassessed, with this approach currently focusing zz The project was closed on June 30, 2015 as scheduled, on meeting the learning needs of the envisaged following a final implementation support mission in provincial master trainers. Refresher training should April 2015. be tailored to meet the learning needs of participants, zz The Bank is assisting Kemitraan and the National with a well-planned mentoring program to reduce Secretariat in the drafting of a business plan. This plan the ongoing burden and expense of having to involve creates opportunities for P3BM’s poverty-targeting national trainers in all district-level trainings. functions to be adapted in the context of the new zz Finally, the new policy environment created by Village Law framework. 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 LESSONS LEARNED of tasks and responsibilities related to local zz A policy umbrella is necessary to facilitate the development management, including those acceptance of P3BM as part of local government related to the achievement of MDGs/SDGs and planning processes. Through implementation of to the implementation of other pro-poor budget previous phases of the P3BM project, it has been policies. Under the Village Law, 10 percent of the found that most civil servants/government agencies national budget will be allocated and transferred will not act until regulations are promulgated or directly to villages. This will result in a far greater technical guidelines are provided. The fulfillment degree of autonomy and authority for village-level of these preconditions will require support from a administrations to determine the use to which their number of areas of government. In turn, this will development funds are put. 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. zz 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 66 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Targets Cumu- Differ- (Cumulative) lative ence with Deliv- Prog- cumu- Unit of ered in ress as lative Result Mea- Base- Total 2014 of Dec target for Indicators sure line Target 2013 2014 2015 2016 (only) 31, 2015 2015 Comments on progress Project Development Objective: To improve poverty targeting of local government expenditures and local government responsiveness to com- munity needs through the scale-up and institutionalization of the P3BM program Component 1: Provincial Cascade Training # master 152 280 160 0 160 284 There are 679 people who partic- trainers ipated in master trainer training trained 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 Ker- ja Perangkat Daerah, SKPD) officials, local academics, and CSOs Component 2: Technical Assistance for Local Governments # of local 11 60 40 28 24 73 Of the 85 local governments who govern- have adopted the P3BM tools, 73 ments local governments have used it to that have set the local budget plan and 12 adopted local governments used it to analyze poverty the local MDGs data. targeting The measure used for “adoption” in annual was not standard. In some cases this devel- meant using several of the P3BM opment tools, in others, one aspect of the planning 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 fi- nanced by APBD Increased 0 7.5% 7.5% 7.5% 0 9.3% This figure of 9.3%, provided in the percent- Completion Report (C.R), is based on age of the Seknas analysis of 15 local gov- direct LG ernments that received P3BM train- budgets ing and technical assistance in early allocated 2013, and compares the MDG-relat- for MDG ed spending in APBDs pre-P3BM targeting (2013) and post-P3BM (2014),* in and pover- both target and non-target areas. ty-related It should be noted that these figures spending differ to those provided in the final ISR, where the increase is report- ed 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 0 12 6 0 3 15 The CR notes the establishment provincial of 15 secretariats/clinics. However, clinics es- Seknas subsequently advised that tablished only 10 of the provincial secretari- ats/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 0 60 50 0 41 9 The project recorded to train 254 and com- CSOs’ staffs, of 9 CSOs and commu- munity nity groups were trained in P3BM groups tools and used the P3BM tools to that use monitor local expenditures P3BM in- struments to track district pro-poor expendi- tures Component 3: National Secretariat and Provide Institutional Support Business - Busi- Busi- Busi- Busi- Business The business plan provides a future plan ness ness ness ness plan pre- opportunity for P3BM’s poverty-tar- developed plan plan plan plan pared geting functions to potentially be for the imple- imple- imple- pre- adapted to the new Village Law long-term mented mented mented pared framework. sustain- ability of P3BM Sub 3 Data- 15 0 24 74 local Although not one of the official national base govern- KPIs, and not included in the Grant MDG used ments Agreement, this particular indicator data sets used had been included (against Com- improved P3BM da- ponent 3) in the World Bank’s Im- tabase plementation 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 SUMMARY INFORMATION Status Task Team Leader(s) Executing Agency(ies) SECRETARIAT Active Sonya Woo (swoo1@ worldbank.org) Start Date to Closing Date The World Bank Approved Budget January 31, 2008 to March 31, 2018 US$16,977,935 PROJECT RATIONALE AND and technical services to PSF task teams and other OVERVIEW stakeholders, particularly in the surrounding context of The PSF Secretariat provides operational and the closure of projects, the dialogue around the transition administrative services to the PSF to sustain an effective to the Village Law, and changes in the new Government framework for the implementation of PNPM Mandiri. administration’s structure and priorities. A number of In addition to supporting the management of the PSF new proposals were submitted in this year for JMC and coordinating the Joint Management Committee virtual approval, including the SUSENAS Consumption (JMC), the Secretariat provides fiduciary oversight and Experiment, the long-term PNPM Generasi Impact reports on the progress of all PSF programs. Key activities Evaluation, the Village Law Support project, and the undertaken by the Secretariat include: (i) administering Improved Frontline Delivery of Early Childhood Education grant agreements issued through the PSF Trust Fund; (ii) and Development (ECED) Services. coordinating program supervision missions and appraisals; (iii) providing operational and technical assistance to Beyond monitoring the PSF budget and the project agencies managing PNPM Mandiri programs at the progress of the project portfolio, the Secretariat also national, provincial and district levels; (iv) preparing played a significant role by providing timely support to financial reports and quarterly and annual progress project teams to complete key deliverables The team also reports; and (v) documenting and disseminating minutes provided project restructuring, extension, and closure of JMC meetings. support, and helped intensify task teams’ coordination with the Managing Contractor, KOMPAK, in the context of The Secretariat supports the growth of the PSF portfolio, the implementation of the Village Law. with the total value of commitments having increased from US$ 37 million in 2008 to US$ 414 million in With these and other changes, portfolio management 2015, and manages a range of activities by engaging remained on track throughout the year, with the total with a large number of government, civil society and value of disbursements for 2015 (as of 31 December other agencies. Nearly 80 percent of PSF resources 2015) reaching US$ 37.3 million, or 104 percent of the are implemented through programs managed by the funds allocated under this year’s revised disbursement Government and Indonesian civil society organizations. target of US$ 36 million (given the change in To support this growth and diversification, the Secretariat Generasi’s implementing partner, which resulted in the focuses on enhancing client engagements with the JMC postponement of planned disbursements). With a number and other PNPM stakeholders and on maintaining the of projects scheduled for closure in 2015, the Secretariat management and quality control systems to ensure the provided support to project teams to facilitate project successful implementation of PSF-financed activities both completion procedures and reporting requirements. and the overall effectiveness of the development and Programs that closed during the year included PNPM coordination platform. Communications, Revolving Loan Funds, and the Village Training Project. Core communications functions (social media, South-South Knowledge Exchanges, social media, PROGRESS IN 2015 knowledge management, etc.) were absorbed into the Despite starting 2015 with a leaner portfolio, the Secretariat’s activity portfolio, as well. Secretariat provided an increased volume of operational PSF Secretariat | 69 FUTURE PLANS new projects’ task teams in order to ensure the smooth In 2016, the Secretariat will focus on the completion management of these changes. of projects scheduled for closure under the existing portfolio, with major deliverables including five Analytical Services and Advisory (ASA)s, two Implementation Status LESSONS LEARNED Reports, and three GRM reports. PNPM Rural is scheduled Smooth and efficient implementation of the portfolio for closure at the end of CY2016, and a South-South was achieved during the calendar year, despite a Knowledge Exchange hosting the Government of India reduced Secretariat headcount, partly by way of is slated for this year. A new teacher accountability continuously keeping the entire PSF team aware of project called KIAT Guru will debut as well. In terms of impending deliverable deadlines, as well as providing the communications functions, these will be under the them with reference samples, internal-use manuals and oversight of the Secretariat, and adapted to Village Law best-practice operational guidelines for different types of implementation. The Secretariat will continue to provide deliverables from its internal reference library. operational and quality-assurance services to these KEY PERFORMANCE INDICATORS Differ- ence Targets (Cumulative) Cumu- with lative cumu- Deliv- Prog- lative ered ress as target Result Unit of Total in 2015 of Dec for Comments on Indicators Measure Baseline Target 2012 2013 2014 2015 2016 (only) 31, 2015 2015 progress Project Development Objective: Provide operational and administrative services to the PSF to sustain an effective framework for the implementation of PNPM Mandiri # of JMC # meetings 2 (2010) 6/year 6 6 6 6 6 3 3 (2015) -3 Virtual JMC meetings meetings. held within the year Contribu- US$ mil- 90 (2010) n/a n/a n/a n/a n/a n/a 12 405 tions (US$) lion 132 (2008-10) Approved US$ mil- 50 (2010) n/a n/a n/a n/a n/a n/a 10 414 commit- lion 90 (2008- ments (US$) 10) Disburse- US$ mil- 28 (2010) n/a 188 271 312 349 370 37 336 -13 ments (US$) lion 36 (2008- 10) Disburse- Disbursed 20% 70% each 70% 70% 70% 70% 70% 73% 73% -4% Disbursement ment ratio during (2009) year reached $37.3 year/un- million, or 104 disbursed percent of the at year revised CY15 start Disbursement Plan of US$ 36 million % of funding % of total 53% 75% 75% 75% 75% 75% 75% 73% 73% -2% executed by approved (2010) Government projects % of funding % of total 7% (2010) 10% 10% 10% 10% 10% 10% 4.9% 4.9% -5.1% executed by approved NGOs projects # of active # of proj- 15 (2010) n/a n/a n/a n/a n/a n/a 14 14 n/a Including projects ects projects closed on December 31, 2015 # types of 1 AR 1 AR, 3 1 AR, 3 1 AR, 3 1 AR, 3 1 AR, 3 1 AR, 3 1 AR, 3 1 AR, 3 reports to QU, 2 GR QU, 2 QU, 2 QU, 2 QU, 2 QU, 2 GR QU, 2 QU, 2 the JMC1 GR GR GR GR GR* GR* *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 SUMMARY INFORMATION Status Task Team Leader(s) Executing Agency(ies) SPECIAL Active Lily Hoo (lhoo@ worldbank.org) The World Bank STUDIES Start Date to Closing Date May 26, 2008 to December 31, 2017 Geographic Coverage Approved Budget National US$15,629,194 PROJECT RATIONALE To ensure the ongoing provision of the required level of AND OVERVIEW support to Government and other stakeholders, the team Through the implementation of PNPM Mandiri and will continue to strive to provide high quality, relevant its predecessor programs over the past 15 years, and timely evaluation and analysis, while expanding its the Indonesian Government has gained significant partnerships to facilitate the delivery of analytical and experience in pioneering and implementing a range of knowledge management products. community-driven development (CDD) programs. These programs have benefitted from rigorous analytical works conducted by the PSF Analytics team in order to improve PROGRESS IN 2015 their performance through enhancements to their design In 2015, the Analytics program continued to make and implementation. The recently enacted Village Law and satisfactory progress towards the achievement of its PSF’s engagement with the implementation of this law development objective. In addition to focusing on the create additional opportunities for the team to continue completion of ongoing studies that commenced in 2014, to meet the need of PSF stakeholders for evidence-based the team also began to provide M&E support to core policy inputs. PNPM Mandiri programs and other smaller initiatives, and to conduct a number of analytic works related to Since its inception in 2009, the PSF Analytics program the emerging priorities for the provision of support for has successfully completed 18 evaluations and/or studies the implementation of the Village Law. In addition, the to support PNPM Mandiri and other smaller initiatives. team continued to provide capacity-building support The team has consistently emphasized the importance through the BPS pilot project to improve the quality of evidence-based analysis as an input to inform policy of the consumption module of the annual National formulation and program implementation. Employing a Socio-economic Survey (SUSENAS). Finally, to support wide variety of mixed-research methods, the PSF Analytics knowledge sharing and information dissemination, the program aims to: (i) provide stakeholders with empirical team published a number of reports and policy briefs data regarding the results and impact of PNPM Mandiri; covering specific issues related to the implementation of (ii) conduct research in greater depth on special topics community-driven development programs. of relevance to PNPM and the social development fields in Indonesia; and (iii) enhance the ability of Indonesian Throughout 2015, the team continued to conduct social science research organizations to conduct M&E evaluations of the PNPM Rural and PNPM Generasi and special studies. Currently, the program is focusing on programs. For PNPM Rural, the Analytics and PNPM Rural evaluations of the PNPM Rural and Generasi programs; on task teams conducted the PNPM Rural Final Evaluation ongoing analytics to support the implementation of the 2012-2015. This evaluation aims to measure the impacts Village Law; on emerging initiatives related to frontline of the program in terms of four key components, namely: service delivery; and on activities to build the capacities of (i) the Technical Quality of three types of infrastructure the Indonesia Statistical Agency (Badan Pusat Statistik, BPS). (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) and analyzed bottlenecks in the implementation of PNPM Beneficiaries’ Satisfaction; and (iv) Revolving Loan Funds Generasi in four villages in two provinces and provided (RLF) Performance and Benefits. Conducted in 150 villages recommendations to address these challenges. While spread across 12 randomly-selected provinces, the quantitative component has been completed, the this quantitative study examines 182 infrastructure qualitative component faces delays due to the weak sub-projects (60 roads, 36 bridges, 43 clean water supply capacities in the areas of analysis and report-writing of systems and 43 irrigation systems) and involves more the consulting firm hired to conduct the evaluation. Thus, than 3,600 households. It is expected that the results of the final report, containing both components, is expected this final evaluation will inform decisions related to PNPM to be completed by end of the first quarter of 2016. Rural’s completion stage by the end of 2016. In addition to the PMS, the team also began to design the In addition, the PSF also conducted the PNPM Generasi fourth round of the impact evaluation for PNPM Generasi, Performance Monitoring Survey (PMS), a mixed-methods which will be implemented in the final quarter of 2016. study that aims to track the performance of the program Together with the MIT’s Abdul Latif Jameel Poverty Action in terms of its 12 results indicators throughout 2014. For Lab (J-PAL), the team conducted pre-survey qualitative the quantitative component of this survey, data from more field missions to six villages in four districts across four than 1,500 households and 90 puskesmas in 90 villages provinces in the period from June to September 2015. across seven PNPM Generasi project provinces was This field mission served a number of purposes, including: collected and analyzed. For the qualitative component, (i) developing an improved understanding of existing together with the Center for Population and Policy Studies perceptions of PNPM Generasi among beneficiaries, of Gadjah Mada University (PSKK UGM), the team identified service providers and other local actors; (ii) developing an 74 | 2015 PSF PROGRESS REPORT improved understanding of Generasi’s institutionalization expenditure reports to analyze whether the reports were and its possible longer-term impacts; (iii) assessing doctored. This will assist BPK to systematically analyze the impact of disruptions to the implementation of expenditure reports from more than 70,000 villages in the program; and (iv) the pre-pilot testing of survey order to identify potential fraud and/or corruption cases, instrument revisions. which can be further investigated through auditing. This will result in improved cost efficiency and the increased To support PSF’s engagement with the implementation effectiveness of auditing through the better targeting of of the Village Law, the team is conducting a number of problematic villages. The team will start to collect sample analytical works on topics such as village governance; expenditure reports from villages through the Sentinel community empowerment; anti-corruption mechanisms; Villages Study in the first quarter of 2016. The consultants and data quality check for Dana Desa (village funds) as for the digit analysis will conduct the simulation in the part of the broader Village Law Support project.. Of note second quarter of 2016. is the Village Governance and Community Empowerment Study (“Sentinel Villages”), which is a mixed-methods Capacity-building activities included the joint longitudinal study that observes the implementation implementation of the SUSENAS Consumption Experiment of the Village Law over a two-year period to determine together with the World Bank Research Group; and the whether the principles of good governance stipulated Poverty team. These activities are intended to support in the law can be articulated in the management of Indonesia’s National Statistics Agency (BPS) in improving village resources to benefit communities. Covering five the quality of data related to food consumption and districts in three provinces (Central Java, Jambi, and East collected through its annual socioeconomic survey Nusa Tenggara), the study will also examine how various (SUSENAS). This year, together with BPS, the team community groups respond to the implementation of developed questionnaires to be used as a survey tool and the Village Law and what key contributing factors are conducted pre-test sessions. The data collection will take influential. The quantitative analysis is based on surveys of place in 2016. various interrelated actors regarding levels of community participation and perceptions regarding various program Finally, to promote knowledge-sharing and information elements. To facilitate the implementation of this dissemination, throughout 2015, the team issued a series survey, the team developed nine sets of questionnaires of publications that highlight PSF’s lengthy experience and conducted pre-test sessions this year. The data in supporting the implementation of community driven collection will begin in the first quarter of 2016. The development programs, including a series of policy briefs qualitative component of this study utilizes interviews, covering the following topics: (i) Education Services in group discussions and direct observation to monitor Rural Indonesia3; (ii) Health Services and Infrastructure key developments related to the implementation of the Gaps in Indonesia4; (iii) Changes in Village Capacity in Village Law in ten villages across the five districts. The One Decade (2001-2012)5; and (iv) Oversight of Village team has completed the collection of data for the baseline Governance6. In addition, two new study reports have study, with analysis of this data ongoing. It is expected also been disseminated, these being the Beneficiary that the findings of the study will serve as inputs for policy Assessment of PNPM/RESPEK Rencana Strategis makers and other key stakeholders to adjust policies and Pembangunan Kampung (Strategic Village Development programs related to the implementation of the village law Plan)7 and the Evaluation of the Village Financial Assistance and to improve their effectiveness. Program (Bantuan Keuangan Peumakmu Gampong, 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 3 Policy brief is available at: http://pnpm-support.org/publication/policy-brief- 01-education-services-rural-indonesia a scoping mission in March 2015 in order to explore the 4 Policy brief is available at: http://pnpm-support.org/publication/policy-brief- feasibility of various anti-corruption tools and to assess 02-health-service-and-infrastructure-gaps-rural-indonesia the levels of ownership by anti-corruption agencies, 5 Policy brief is available at: http://pnpm-support.org/publication/policy-brief- including the Corruption Eradication Commission (KPK); 03-changes-village-capacity-one-decade-2001-2012 the Indonesia Audit Board (BPK); and the Attorney 6 Policy brief is available at: http://pnpm-support.org/publication/policy-brief- 04-oversight-village-governance General’s Office. Following the mission, the BPK agreed 7 Full report is available at: http://pnpm-support.org/publication/beneficiary- to test a digit analysis method, which utilizes data from assessment-pnpmrespek-rencana-strategis-pembangunan-kampung-village M&E and Special Studies | 75 BKPG) in Aceh Province8. The team also published a secure agreement on the various anti-corruption tools to comprehensive Annotated Bibliography that summarizes be tested. The team also plans to explore opportunities a collection of articles, evaluations, studies, and other to work with the National Civil Servant Agency (BKN) to analytic works that reflect lessons learned from fifteen explore the civil servant database in order to discover years of research relevant to the Kecamatan Development relationships between the roles, background, and Program (KDP) and PNPM Mandiri9. placement of civil servants and the implementation outcomes of various government programs and policies. FUTURE PLANS In 2016, the PSF will continue to implement a number of LESSONS LEARNED ongoing studies that commenced in 2015. Through the implementation of various analytical exercises in 2015, the PSF has learnt that developing The PNPM Rural Final Evaluation 2012-2015 will be and maintaining relationships with existing and/or new completed in the first quarter of 2016. Results will stakeholders is key to ensuring that evidence produced be presented to the Government by June 2016. The by the team is received well by policymakers. The PNPM Generasi fourth round randomized control trial emergence of various new stakeholders, including the (RCT ) impact evaluation (IE) team will combine panel newly-established Ministry of Villages, Disadvantaged surveys with qualitative research to gauge the program’s Regions and Transmigration (MoV ) and the Ministry of long-term impacts and to determine the potential to Finance’s Directorate General of Fiscal Balance, creates utilize Generasi’s incentive model to further support a need for the team to understand these stakeholders’ the development of a basic service delivery approach ongoing and future agendas and priorities in order to under the Village Law. The PSF will start to collect data determine further analytic needs. in 300 sub-districts from more than 10,000 households of PNPM Generasi beneficiaries. In addition, the PSF High-quality data is crucial in order to produce both high will also facilitate the establishment of a Generasi quality analytical pieces and sound policy advice/inputs. impact evaluation advisory committee which will insist At present, basic data at the village level is collected and of Government stakeholders and representatives of managed by different agencies, resulting in significant development partner agencies and which is intended inconsistencies and differences. Given the limited to provide strategic advice and direction. In addition to availability of consistent and reliable basic data, the team these major evaluations, the PSF also aims to complete a will work with the PNPM Rural Task team, the Village number of outstanding pipeline commitments by the end Law team, and other stakeholders to develop a village of the first quarter of 2016, including the PEKKA Endline information and M&E system that will reduce challenges Survey (quantitative) and the PNPM Generasi Performance related to the validity of data. 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/evaluation- village-financial-assistance-program-bantuan-keuangan-peumakmu- gampong-bkpg 9 Full report is available at: http://pnpm-support.org/publication/15-years- indonesias-national-community-driven-development-programs-kecamatan- development 76 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Targets Differ- (Cumulative) ence Deliv- Cumulative with cu- ered in Progress as mulative Result Unit of Base- Total 2015 of Dec 31, target Comments on Indicators Measure line Target 2013 2014 2015 2016 (only) 2015 for 2015 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* Findings/ n/a n/a 7 addi- 5 addi- 2 addi- n/an/a n/an/a 1 eval- 7 evaluations n/a The PNPM/ evidence from tional tional tional uation disseminat- RESPEK Papua 2012-2013 evalua- evalu- evalu- dissemi- ed to PNPM Beneficiary round of tions** ations ations nated Stakeholders Assessment evaluations dissem- dissem- dissem- (qualitative) reviewed as inated inated inated was published part of PNPM to PNPM to PNPM to PNPM by the end of Roadmap Stake- Stake- Stake- September process holders holders holders 2015. The (2012- quantitative 2013) component will be pub- lished early 2016 Findings/ n/a n/a 4 eval- n/a 4 eval- 3 eval- 2 eval- 1 eval- 1 evaluation - 2 evalu- Creative evidence from uations uations uations uations uation completed ations Communities evaluations dissem- launched completed dissem- (Creative (Creative Com- II Evaluation launched in inated (PEKKA, inated Commu- munities II), 1 has been 2014-2015 to PNPM Creative (PEKKA nities II) evaluation in implemented reviewed as and Vil- Communi- Evalu- complet- preparation by Yayasan part of PNPM lage Law ties II and ation & ed stage (PNPM Kelola (Creative transition and Stake- PNPM Rural) PNPM Ru- Generasi IE), Communities Village Law im- holders*** ral Final 1 evaluation II Grant Recip- plementation Evalua- in implemen- ient) process tion) to tation stage PNPM (PNPM Rural and Vil- Final Evalu- lage Law ation), and Stake- 1 evaluation holders in report finalization stage (PEKKA Evaluation) Component 2: Research in greater depth undertaken regarding special topics of concern to PNPM and the social development field in Indonesia**** New 2014 # of n/a 3 studies n/a 3 studies 1 study 1 study 1 study 1 study com- On track n/a studies studies launched launched completed complet- (DMS) pleted (DMS), launched launched and com- (Disaster ed (AI) complet- 2 studies (Sentinel pleted Manage- ed implemented Villages/SV, ment Sup- (SV and AI) Accountability port; DMS), Initiative/AI, 2 studies and Disaster implement- Management ed (Sentinel Support/DMS) Villages and Account- ability Initiative) Component 3: Ability of Indonesian social research organizations to conduct M&E and special studies enhanced***** % of ongoing % of n/a 100% 100% 100% 100% 100% 100% 100% On track n/a studies involv- studies ing Indone- sian research institutions M&E and Special Studies | 77 KEY PERFORMANCE INDICATORS Targets Differ- (Cumulative) ence Deliv- Cumulative with cu- ered in Progress as mulative Result Unit of Base- Total 2015 of Dec 31, target Comments on Indicators Measure line Target 2013 2014 2015 2016 (only) 2015 for 2015 progress Support for n/a n/a Concept n/a Concept Simulation n/a Simu- Concept Delay Simulation BPS SUSENAS devel- devel- completed, lation Note agreed Experiment Consump- oped, oped, results used question- upon by BPS, experienced tion Module simu- simu- by BPS to naires simulation delay due to Simulation lation lation improve have questionnaires enumerator conducted launched launched quality of been have been recruitment and SUSENAS devel- developed and BPS complet- data oped and and tested. administrative ed, results tested requirements. used by BPS to improve quality of SUSENAS data. * 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 SUMMARY INFORMATION Executing REVOLVING Status Task Team Leader(s) Agency(ies) Closed Safriza Sofyan (ssofyan@ PNPM Support Facility worldbank.org) (PSF)/World Bank LOAN FUNDS Start Date to Closing Date January 15, 2010 to April 30, 2015 (RLFS) CAPACITY Geographic Coverage Yogyakarta, Central Java, East Nusa Approved Budget US$ 9,971,956 BUILDING AND Tenggara (NTT ) and West Sumatera SUSTAINABILITY PROJECT PROJECT RATIONALE The value of PNPM financial assets stands at more than AND OVERVIEW US$ 1 billion and are utilized to benefit more than nine This project was closed on April 30, 2015. Its development million poor households. These funds will continue to be objective was to support the capacity building, restructuring utilized to benefit communities following the closure of and institutionalization of the PNPM Revolving Loan Funds the PNPM program. (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 PROGRESS IN 2015 financial services to the poor. The project worked closely Towards the end of the project’s closing date, it was with PNPM stakeholders to test, analyze and promote: (i) making good progress toward meeting its objectives. At capacity building; (ii) linkages between RLFs and bank the closure of the project, all project components were and non-bank financial institutions; and (iii) enhanced handed over to the Government in accordance with the supervision and monitoring activities. established guidelines. The project aimed to support the Government’s Component 1: Capacity Building and endeavors to make PNPM RLFs more transparent and Institutionalization: Core training modules developed to achieve a level of sustainability that enables them under the project and finalized with the Government to continue to provide financial services to the poor provide the basis for the management of the RLFs following the closure of the project. Following testing, in accordance with established good practice for project recommendations were expected to be adapted community-based lending organizations. The five as needed by the Government before the implementation modules (induction/orientation; loan management; of national RLF reforms planned for 2015. loan recovery; accounting, including double-entry bookkeeping; and RLF supervision) were delivered to The project designed and tested activities to strengthen the Financial Services Authority (Otoritas Jasa Keuangan, RLF operations. Following successful testing, the OJK); the Coordinating Ministry of Human Development Government planned to adapt the recommendations and Culture (Kemenko PMK); the Ministry of Home Affairs according to its requirements to implement reforms to (MOHA); and the National Planning Agency (Bappenas). the RLFs on a national scale. The project also provided support for studies, assessments and a legal review to In 2015, the project team continued to provide support provide strategic inputs for the overall design of the to develop new legal and governance structures for the PNPM RLF scheme and related activities. The pilot was future implementation of RLFs, with these structures implemented with potentially sustainable RLFs in four intended to clarify asset ownership and to enable the provinces (DI Yogyakarta, Central Java, West Sumatra, and establishment of linkages with bank and non-bank East Nusa Tenggara). Together, these provinces account financial institutions. Technical and implementation for approximately a third of the total value of RLF assets. 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 discussions with stakeholders related to the process process. The OJK, the Ministry of Cooperatives, and the and to share lessons learned and to identify further Ministry of Law and Justice reviewed the guidelines for the refinements to the relevant processes and guidelines. transformation of PNPM Urban RLF, while draft guidelines Lessons learned from the pilot in urban locations will be for the transformation of PNPM Rural RLF were delivered shared with the Ministry of Public Works, MOV, Kemenko to the Ministry of Villages, Disadvantaged Areas, and PMK, Bappenas, and the Provincial Government of Transmigration (MOV ) for review. Central Java to serve as inputs for implementation in rural locations. The goals for the program to achieve the legal transformation of PNPM Urban RLFs and associated In 2015, Bappenas, OJK, and the Ministry of Cooperatives processes were socialized at well-attended meetings continued to provide support by facilitating legal and workshops at the provincial, district, village and transformation coaching clinics and workshops in several sub-village levels. Facilitated by the Ministry of Public provinces in Central Java, West Java, Lampung, West Works and local government agencies, ten PNPM Urban Sumatra, DI Yogyakarta and West Java. The participants pilot communities decided on transition strategies to in the coaching clinics and workshops included achieve the legalization of RLF serving their communities. representatives of rural Activity Management Units (Unit Of the ten RLF, eight will be transformed to become Pengelola Kegiatan, UPKs) and Inter-Village Coordination savings and loan cooperatives; one will become a Bodies (Badan Kerjasama Antar Desa, BKADs) from microfinance institution; and one will become a legal various a number of. These events were also intended to association. All are now in the process of finalizing disseminate lessons learned from the implementation of administrative requirements to register the new legal PNPM Urban’s legal transformation activities in the ten statuses of the entities. A final workshop was held at pilot locations. the end of March 2015, with this workshop involving 80 | 2015 PSF PROGRESS REPORT Component 2: Bank and Non-bank Linkages: continue building the capacities required to support the Activities under this component were completed in sustainability of RLFs. 2014. The Government’s decision to enable communities to transform RLF into legal entities, together with the improved local administrative processes, opened up FUTURE PLANS options for the development of linkages with the formal Bappenas’ future plans for the RLF developed under sector and for improving the sustainability of the RLFs. The the PNPM program involve the establishment of a completed study, which mapped existing linkages, case Community Development Trust Fund (CDTF), with a dual studies, and catalogues, was transferred to the relevant socioeconomic mandate to generate profits to support central government agencies. the development of micro-businesses and to improve community welfare through their financing. Micro-loans, Component 3: Monitoring and Supervision: Ensure the distribution of social assistance, and the development continuity after the project ends, UPK staff and community of financial literacy will be the main activities of these members were trained in how to use, operate and CDTFs. Future programs implemented to sustain maintain an accounting and payment system; to migrate community financial assets under these CDTFs will focus data to the new system; and to provide technical support on the establishment of an appropriate and enabling through a help desk. Refresher training was provided at all regulatory and supervisory environment. project locations in the period from the end of October 2014 to April 2015. In order to ensure that these financial assets remain sustainable after the Government ends subsidies in the RLF staff in 46 project locations were only able to use a form of community grants, the Government has initiated web-based data management prototype until the end CDTFs to form the foundation for sustainable access to of April 2015. During the implementation of the pilot, finance for low-income households. Developing a strategy the project hired a server facility from a Jakarta-based to integrate the CDTF with sustainable livelihood activities private firm. Originally, it was intended that the MIS data is vital as a means to strengthen the collective ownership would be transferred to MoHA’s server facility. During of the CDTF by borrowing groups and communities. the transition and the transfer of the responsibility for the implementation of PNPM Rural to the MOV, it was Bappenas is in the process of developing a ten-year anticipated that the central server would be placed in that CDTF master plan that involves two main stages. ministry. However, this did not occur because MOV had The first stage (2015-2019) will focus on institutional neither the capacity nor the facilities to manage the server strengthening through the establishment of the formal nor the ability to procure the services. Therefore, the MIS legal and governance structure for CDTF operations; on data was transferred to Bappenas, with training taking improving MIS and operational capacities; on enhancing place at the end of April 2015. To date, Bappenas has not CDTF human resources; on developing supervision yet activated the server and the new MIS has not been and communication systems; and on conducting operational since the point of closure of the project. relevant studies and assessments. The second stage (2020-2024) will focus on the achievement of a higher The planned impact evaluation study of RLF activities level of sustainability through the restructuring of the and processes will not be included in the pilot project CDTF business model and the possible development activities, according to a decision made by the Joint of a self-regulatory organization. In addition, the Management Committee (JMC) in December 2014. Government has now included RLF reforms in its 2015-2019 Medium-Term Development Plan. Crosscutting Policy and Strategy: The project was initially designed in anticipation of a phase-out of direct Government support to the RLFs. However, the LESSONS LEARNED Government’s 2015-2019 Medium-Term Development Though good progress was made in all areas, the Plan (RPJM) now envisions continuation of this support. development objective was perhaps too ambitious, Accordingly, the project has supported Bappenas given the state of the political economy and the complex in the development of national strategy to roll out administrative structure for consensus decisions. At the RLF reforms and a draft master plan for a proposed time of the project’s approval, it would have been five Government-executed Community Development Trust years before the anticipated end of direct Government Fund (Dana Amanah Pemberdayaan Masyarakat, DAPM) to 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 Lastly, it is deemed necessary to embed pilot interventions the urgent findings of an intra-governmental technical into long-term planning. The Training of Trainers ( TOT ) working group. This left little time in which to implement program and MIS developed under the project were a range of complex tasks. implemented as a stand-alone pilot project without a clear commitment from key stakeholders for a nationwide The project suffered from the lack of a government roll-out following the implementation of the pilot. Any champion to help surmount bottlenecks in stakeholder future project should embed the pilot intervention coordination; to build consensus; and to ensure that in a long-term plan that defines the timing, resource high-echelon policymakers were well informed. This requirements and responsibilities for roll-out in the event particularly affected work on establishing a legal structure the pilot project would meet agreed upon requirements. for the RLFs early in the project, with this delay in turn This plan should be prepared and agreed upon before the disrupting subsequent activities. pilot commences. 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. 82 | 2015 PSF PROGRESS REPORT KEY PERFORMANCE INDICATORS Targets (Cumulative) Differ- ence with cu- Result Unit of mulative Indica- Mea- Base- Total Delivered in 2015 Cumulative Progress target tors sure line Target 2013 2014 2015 2016 (only) as of Dec 31, 2015 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 Re- volving 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 Loans To be Targets All project activities Baseline data collect- increase ex- to be were finished in April ed. All pilot activi- in # and tracted set in 2015. ties (legal, capacity amount from collab- building, MIS, bank of loans base- oration linkages) that will im- to line with prove RLF operations groups/ data PNPM. in final stages. members after in sup- deter- ported mina- RLFs. tion of RLFs to be sup- ported by pilot. # UPK- UPK- 0 (all Num- Mapping of linkages There were several finan- RLFs with RLFs funded ber between 3,614 RLFs cial linkage potentials with increased from targets and formal financial few leading banks if RLFs non-gov- PNPM to be sector showed a small have been transformed ernment Block set after number had linkages into new legal entities. financial Grants linkage but no partners were resourc- and re- discus- providing financial es. flows) sions resources directly to with the UPK-RLFs, which stake- requires legal status holders. of RLFs. Component 1: Capacity Building and Institutionalization # of UPKs Assess- 0 507 508 assessments Need assessment has with ments completed in 2011; been completed before com- discussed and dissem- 2015 pleted inated in 2012. As- sustain- sessments found sig- ability nificant weaknesses assess- in RLF system and are ments informing stakeholder consultations and RLF project activities. Legal Report 0 Legal Legal transformation Legal review complet- The report served as a key review review was tested by GOI ed in 2013 and report input to the Government’s to clarify com- in 10 urban loca- issued. Draft technical decision to offer 3 legal own- pleted tions. All ten PNPM and implementation forms for transformation ership urban communities guidelines were deliv- of UPK RLFs. Technical and of RLF decided to become ered to relevant line implementation guide- assets cooperative and ministries. lines are detail manuals and rec- legal association. for legal transformation ommend Draft technical and roll out for RLFS rural and possible implementation urban. RLF legal guidelines for legal struc- transformation were tures delivered to Ministry of Public Works and Housing, Ministry of Villages. RLFs that # UPK- 0 46 46 Curriculum and Curriculum and 5 Training modules, training received RLFs 5 core financial core financial and methodology, and trainer high and microfinance microfinance training certification completed quality training modules modules developed, and handed over to Gov- microf- were completed and tested and finalized ernment early 2015 inance delivered to OJK, with Government. 36 capacity Kemenko PMK, Bap- Trainers, including 8 building penas, and MOHA Master Trainers, from the PNPM system were trained for roll- out to pilot locations and beyond. PNPM Mandiri Revolving Loan Funds (RLFs) Capacity Building and Sustainability Project | 83 KEY PERFORMANCE INDICATORS Targets (Cumulative) Differ- ence with cu- Result Unit of mulative Indica- Mea- Base- Total Delivered in 2015 Cumulative Progress target tors sure line Target 2013 2014 2015 2016 (only) as of Dec 31, 2015 for 2015 Comments on progress Component 2: Bank and Non-Bank Financial Institution Linkages Stock Report 0 1 Reports of existing Mapping of 3,614 Stock taking completed in take on linkages, case stud- UPK-RLFs linkag- 2012; report disseminated lessons ies, and catalogues es with financial mid-2013. All studies and learned were delivered to institutions complet- catalogues were handed from relevant government ed in 2012. Report over to Government in PNPM agencies including disseminated in July early 2015 RLFs with provincial govern- 2013. Report and case existing ments studies published linkages. with Government endorsement. # sup- # RLFs Baseline established. Formal linkages require ported Stakeholder work- RLF legal status. RLFs with shops and discussions financial on mapping results insti- and way forward held. tution Collection of 18 prac- linkages. tices of linkages ware published and lesson learned discussed at public-private workshops promoting linkages with PNPM. Linkages are depen- dent on establishing legal entities. Component 3: Monitoring and Supervision System Impact Design 0 1 As more time is required assess- to see outcomes of ment tested/pilot activities, the designed 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 % of sup- % UPK- 0 100% - - Prototype RLF mon- Independent ratings Web-based data man- ported RLFs itoring system that provided for a sample agement prototype was RLFs with supports automated of RLFs. PNPM Rural not operational after April regular, generation of rat- ratings simplified from 2015 complete ings, data integrity 60 to 17 proposed and and transparency indicators. PNPM timely was alive in 46 proj- stakeholders eventu- perfor- ect locations until ally agreed on much mance end of April 2015 simpler performance/ rating RLF “health” indicators. results Prototype RLF monitoring system supports automated generation of ratings, data integrity and transparency. 84 | 2015 PSF PROGRESS REPORT WINDOW FOUR VILLAGE LAW SUMMARY INFORMATION Status Task Team Leaders Executing Agency(ies) SUPPORT Active Samuel Clark (sclark@ worldbank.org) The World Bank (INDONESIA Start Date to Closing Date Geographic Coverage May 1, 2015 to December 31, National 2017 VILLAGE LAW Approved Budget US$ 6,250,000 PASA) PROJECT RATIONALE Year 3 (2017): Integrity and Decentralized Support AND OVERVIEW Structures: During the third year, the program will focus The overall objective of the Village Law Programmatic on strengthening formal accountability channels (such as Advisory Services and Analytics (PASA) Program is to audit functions) and the design of decentralized support support the Indonesian Government’s efforts to ensure structures to provincial and regional governments. accountable village governance and participatory village development. The program delivers three main The program’s main Government clients are DJ-PK, types of support: 1) Just-in-Time policy advice and Ministry of Finance (MoF) (pillar 1); DJ-Bina Pemdes, analytics; 2) technical support for the operationalization Ministry of Home Affairs (MoHA) (pillar 2); DJ-PPMD, and implementation of policies and systems; and 3) the Ministry of Villages (MoV; pillar 3, also pillar 2), monitoring and evaluation analytics. Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan(Menko PMK) (Coordinating The Village Law PASA Program is organized around Ministry for Human Development and Culture), and four programmatic pillars: 1) resource mobilization, The National Planning Agency (Bappenas). The program allocations and flows; 2) village development governance, also provides advice to Indonesia Audit Board (BPK), accountability and capacity; 3) community empowerment Komisi Pemberantasan Korupsi (KPK) (Corruption and inclusion; and 4) monitoring, evaluation and Eradication Commission), Badan Pengawasan Keuangan thematic studies. The program recognizes that full dan Pembangunan (BPKP) (Development and Finance implementation of the Village Law is a multi-year effort Surveillance Agency) , Tim Nasional Percepatan and is therefore structured around a three-year phased Penanggulangan Kemiskinan ( TNP2K) (National Team engagement strategy: for the Acceleration of Poverty Reduction), and KSP. The Village Law PASA Program is financed from three sources: Year 1 (2015): Regulatory Framework, Financial the PSF Trust Fund; the J4P Trust Fund; and the Bank Architecture and PNPM Transition: During the Budget (BB), with a relatively small contribution from this first year, the program will focus on supporting the final source. This report covers only activities financed Government to put in place the national and sub-national through the PSF Trust Fund. regulatory framework and the basic financial architecture or “plumbing”. It will also focus on restructuring key PNPM institutions and developing a simple PROGRESS IN 2015 monitoring framework. In 2015, the program focused on delivering Just In Time (JIT ) analytics and other technical support, and on Year 2 (2016): Incremental Improvements and designing and implementing diagnostic and analytical Deepening Participation: During the second year, the tools that will provide the empirical base for incremental program will focus on facilitating the achievement of improvements in Year 2 (2016) and as the foundations incremental improvements to the national institutional for policy and system reforms in Year 2 and Year 3. Table framework and on deepening the level of community 1-4 provide details of the activities that were originally participation in village development processes. 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 team prioritized two analytical works this year, with The main objective of this pillar is to provide input to the the first focusing on the equity implications of the Dana Government to enable it to determine the best means Desa allocation formula, and the second involving a village to mobilize resources to fund the village transfers and to expenditure analysis. The team prioritized analysis of the allocate and transfer these funds to maximize economic Dana Desa allocation formula because of its potential to growth and to reduce poverty and inequality. The result in substantial increases to the allocations to medium Governance GP implements most of the activities in this and large villages which contain an aggregate total of pillar. In 2015, a good working relationship with DJ-PK more than 40 million poor and near-poor members of was developed and a work plan involving the provision of communities. It will also be possible to implement the technical advice, analytics and concept development were “hold harmless principle” in the context of increases to the agreed for FY16. Table 1 summarizes progress in terms total budget allocation for Dana Desa. The dissemination of the activities identified in the initial JMC Proposal in strategy targeted a number of key stakeholders in order April 2015. 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 Table 3. Pillar 1 Activities (JMC proposal, April 2015) briefings to various government stakeholders. The dissemination of the work resulted in a raised awareness Status & (Expect- of the issues, although the MoF remains reluctant to Main ed Com- change the formula due a perception that this would No Activity Description Client(s) pletion) result in a failure to feel the President’s promise to provide Pillar 1: Resource Mobilization, Allocations and Flows Rp 1 billion to each village. 1 Equity in Analytics and Internal Ongoing Alloca- policy advo- (Dec 16) tion cacy to raise The village expenditure analysis was prioritized because understanding and support for of the enormous demand for data related to the uses making the DD to which villages are putting their additional transfers. formula more By the end of 2015, the project team had collected a needs-based. large sample of village budgets and engaged a firm to 2 District Quantitative DJ-PK Consol- and analysis and idated lament associated data entry. It is expected that this village policy advice into Vi- firm will deliver its results in the first quarter of 2016. fiscal on managing PER (see impacts fiscal shocks below) In addition to the analytical work, a series of technical of increased meetings were used to develop the village excellence district-financed village transfers concept, which involves the design of a performance (ADD). mechanism that would provide incentives to villages to 3 Devel- Analysis and DJ-PPMD Ongoing allocate funds for improving services, and to districts for opment policy advice on (Oct 16) creating and enabling environment for villages. At the prioritiza- national village tion development end of 2015, the project team presented a proposal to priorities and the PSF Joint Management Committee (JMC) for a pilot in prioritization pro- cess 2016 and 2017. 4 Village Technical sup- DJ-PK Com- excel- port to develop plete Pillar 2: Village Development Governance, lence village excel- concept lence concept Accountability and Capacity of incentivizing The objective of Pillar 2 is to support the Government districts and vil- in its endeavors to establish an accountable and lages to use DD effectively. participatory village development cycle that includes 5 Village Support govern- DJ-PK Ongoing transparent financial management and procurement Public ment to develop DJ-Bina arrangements; opportunities for community participation Expen- methodology for Pemdes diture tracking village and oversight; upward accountability; and effective Review expenditure, and village regulatory functions. Activities under this pillar ( ViPER) understanding village-level allo- were specifically intended to support DJ-Bina Pemdes cation decisions. and DJ-PPMD in these areas. Table 2 summarizes progress 86 | 2015 PSF PROGRESS REPORT Table 4. Pillar 2 Activities (JMC proposal, April 2015) for the provision of technical and analytical support to Status & continue this work in the first quarter of 2016.. (Expect- ed Main Comple- Pillar 3: Community Empowerment and Inclusion No Activity Description Client(s) tion) This pillar is intended to support the Government in its 6 Simpli- Analytics and DJ-Bina Ongoing development of policies and its provision of support fication policy advice on Pemdes and simplification of for systems that empower communities and individual harmo- village financial community members to participate in the village nization management of VFM ( VFM) and pro- development cycle and to ensure village institutions are systems curement inclusive and create space for marginalized groups. Only 7 Village Policy and techni- DJ-Bina Ongoing modest progress was made in terms of the activities audit cal advice on reg- Pemdes and ulatory framework BPK included under this pillar in 2015. In accordance with over- for village over- BPKP the program’s phased strategy (see above), the project sight sight and capacity team emphasized support for the development of core building needs for implementation institutional structures and for establishing clear rules 8 District Legal and tech- DJ- Ongoing of the game. In relation to community empowerment enabling nical advice and PPMD and inclusion, this focused on transitioning the PNPM environ- analytics on the DJ-Bina ment for sub-national Pemdes facilitation structure to support villages to implement the village regulatory frame- DJ-PK Village Law. Thus, the Village Law PASA Program dedicated develop- work for village ment development (al- considerable resources to support the PNPM Rural Team, location, VFM, pro- which included policy inputs from the team’s legal curement, prioriti- zation & planning, advisors; technical support to develop facilitator training & authorities). modules; and JIT analytics, including a national survey of on the activities identified in the initial JMC Proposal in April 2015. Table 5. Pillar 3 Activities (JMC proposal, April 2015) Status & The PASA program focused on delivering technical (Expect- ed support to government stakeholders to enable them to Main Comple- finalize core aspects of the regulatory framework and No Activity Description Client(s) tion) to deliver capacity building support at the district and 9 Social Initial analytics DJ-PPMD Planned inclusion and technical village levels. The project team provided technical advice review of support to on the design of eight national regulations (including the reg- strengthening the ministerial regulations on village priorities; village ulatory inclusion. frame- development planning; and village facilitation), and work provided technical inputs to inform the design and 10 Citizen Technical sup- DJ-PPMD Dropped dissemination of sub-national template regulations to feedback port to establish (to KOM- options a SMS-based PAK) more than 250 districts. Training and capacity building citizen feedback experts also advised the Government on the finalization mechanism. of core training modules for village officials, with two 11 Nation- Policy and tech- Menko Consol- al and nical advice on PMK idated national workshops delivering hands-on technical support sub-na- sectoral inputs into to assist districts to meet disbursement conditions and to tional to the national Devel- understand their role in supporting villages. sectoral and sub-na- opment linkages tional village Prioritiza- development tion (see Support was provided for the simplification of village prioritization above) process. financial management, as well as village audit and 12 Village Policy and MoV On hold oversight. A technical mission on community participatory infra- technical advice auditing was conducted in cooperation with DJ-Bina structure on systems to quality quality control Pemdes and DJ-PPMD in August 2015. In December 2015, village infra- the program finalized work plans with two directorates structure. Village Law Support (Indonesia Village Law PASA) | 87 facilitators. Table 3 summarizes progress in terms of the of the Sentinel Villages were conducted with government activities identified in the initial JMC Proposal in April 2015. stakeholders, following which internal approval was granted, the local research firm mobilized, and the Pillar 4: Monitoring, Evaluation and Thematic Studies qualitative and quantitative research teams mobilized. It The objective of this pillar is to support empirically-based is anticipated that the study will provide and in-depth policy making by facilitating the production and analysis of processes, success and challenges on a dissemination of relevant, high quality data and analysis bi-monthly basis beginning in the first quarter of 2016. to inform, influence and guide policy and action. Good The team presented the results of a corruption assessment progress was made in terms of the activities under this to government stakeholders and initiated a proof-of- pillar in 2015. Consultations related to the implementation concept 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 Table 6. Pillar 4 Activities (JMC proposal, April 2015) SUSENAS and PODES. This work is expected to accelerate Status & in 2016. Solid progress was made in terms of the (Expect- ed bureaucracy analysis, a literature review being undertaken; Main Comple- access to an enormously valuable dataset being agreed No Activity Description Client(s) tion) upon; and a research plan being developed with Badan 13 District Annual assess- Menko Ongoing Kepegawaian Daerah (BKD) (Regional Human Resources and ment of core PMK Village village law sys- Agency). This analytical work will generate insights into Debot- tems, including local bureaucratic incentives, which are particularly tleneck- allocation, funds ing Diag- flow, regulatory relevant to understanding the important linkages nostic framework, village between villages and frontline service delivery units. Table utilization and accountability. 4 summarizes progress in terms of the activities identified 14 Village Technical sup- BPK Ongoing in the initial JMC Proposal in April 2015. corrup- port to develop tion and mechanisms/tools account- to detect, mea- ability sure, and mitigate NEW ACTIVITIES IN 2015 corruption and The program strategy was purposively demand-driven accountability interventions. in 2015, with the aim being to respond rapidly to 15 Tracking Support the BPS Ongoing requests from the three core ministries responsible village Government to for the implementation of the Village Law. Indeed, key gover- adjust existing nance government sur- government ministries responsible for implementation and wel- vey instruments to of the Village Law did not appoint Echelon I, II and III fare in track the impacts national of the Village Law positions until very late in the Government’s fiscal year, surveys on poverty, wel- with some of these positions not being filled until August. fare and service Thus, it was necessary to adopt a flexible approach to delivery client engagement and to adjust the JIT activities to align 16 Local Support the Gov- BKN Ongoing bureau- ernment to better with the priorities of the new appointees. cracy understand how analysis local bureaucracy works and what kind of incentives FUTURE PLANS can help improve performance The project team recently completed a Village Law 17 Village Utilizing longitu- Menko Ongoing Implementation Scorecard that assessed progress in gover- dinal methods, PMK (Dec 17) 2015 in relation to four critical aspects of the Village Law: nance this study aims to MoV allocation; disbursement and funds flow to me: planning and better understand com- decision-making and spending; and accountability. In relation to each of munity and accountabil- these aspects, the scorecard assessed the extent to which empow- ity process at the erment village level, espe- the policy and regulatory framework was in place; whether study cially in relation to implementation systems were designed and operational; (Sentinel village develop- Villages) ment and service and, where data was available, the intermediary outcomes delivery. that these policies and systems were generating. The 88 | 2015 PSF PROGRESS REPORT assessment identified a number of shortcomings and discouraging villages from allocating and spending funds positive achievements, which will help inform how the on activities that will improve service delivery (such as the program is prioritized into the future: types of activities that Generasi funds). This issue affects a wide range of activities and it is therefore critical that Inequity in the allocation formula: The project team’s this problem is resolved through the regulatory revisions modeling, briefings to a wide range of government’s officials, planned for 2016. and publication of key results in the Indonesia Economic Quarterly (IEQ) has raised awareness about the inequities Accountability framework: The assessment demonstrated inherent in the current formula. These consultations with the that very little progress has been made in terms of Government stakeholders have led to a better understanding establishing and implementing key aspects of the of the policy debates, although they also suggests that accountability regulatory framework and implementation there is a significant need to intensify analytical work on this systems. It will be important for the project team to assess important topic. how to make progress in this area in 2016. Planning and spending on service delivery activities: These challenges will be discussed internally and with The findings from the debottlenecking diagnostic support development partners in early 2016, with any adjustments information received from development partners that the in activities to be made in the context of the Village Law’s regulatory environment, particularly at the district level, is PASA’s Full Program Review, which is planned for March. Table 7. New and Adjusted Activities Status & Main (Expected Type Activity Description Client(s) Completion) Pillar 1: Resource Mobilization, Allocations and Flows ADJ Equity in Based on request, the scope was broadened to include DJ-PK Ongoing Allocation technical support to improve the underlying data used to (Nov 16) allocate DD. NEW National funds Based on request following a technical mission on the FM DJ-PK Ongoing flow monitoring reporting systems, additional support to adapt SIKD to (Dec 16) monitor DD (and ADD) disbursement was initiated. Pillar 2: Village Development Governance, Accountability and Capacity NEW Village FMIS Based on request following a technical mission on the FM BPKP Ongoing reporting systems, additional technical advice to develop DJ-Bina and implement a village FMIS. Pemdes NEW Regulatory Based on various requests, additional technical advice MoV Ongoing simplification to develop and revise national and sub-national DJ-Bina implementing regulations as well as hold workshops for Pemdes sub-national governments. This work is closely coordinated DJ-PK with KOMPAK. ADJ Village Training Technical support to finalize core village government DJ-Bina Ongoing Systems and Tools training modules (continuation of support previously Pemdes financed from Bank Budget), and to undertake a survey of village capacity. Pillar 3: Community Empowerment and Inclusion NEW Facilitator survey Based on request, a rapid survey of facilitators and DJ-PPMD Complete and training assessment of facilitator training was conducted to assessment advocate for mandating PNPM Facilitators to support village law implementation. Pillar 4: Monitoring, Evaluation & Thematic Studies NEW M&E capacity Initial request to deliver capacity building training on M&E DJ-Bina Planned building to government officials. Pemdes Village Law Support (Indonesia Village Law PASA) | 89 LESSONS LEARNED has been augmented by programs such as KOMPAK that As outlined in more detail in the results framework, the were able to place large numbers of technical assistants Program has successfully delivered policy advice to within Government to support implementation. senior government officials; provided technical support to mid-level government staff; and generated and Timeliness is critical for impact: Another lesson from disseminated knowledge to development partners and 2015 relates to the importance of timeliness in the the public more broadly. The following lessons have the delivery of technical and policy advice. The emphasis on Government been learnt in the implementation of the JIT activities in Year One and the close coordination with program in the first year: the Government helped to facilitate the delivery of timely support. The ability to deliver this support on-demand Internal and External Coordination: Although in 2015 was also assisted by the availability of technical transaction intensive, the program has invested in and policy advice developed within the World Bank both internal program coordination and regular Jakarta Office over a decade of providing support for both coordination and communication with external community development and decentralization. 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 KEY PERFORMANCE INDICATORS Differ- Cumu- ence Com- Targets (Cumulative) lative with cu- ments Progress mulative on Result Unit of Base- Total as of Dec target prog- Indicators Measure line Target 2015 2016 2017 - Delivered in 2015 (only) 31, 2015 for 2015 ress Project Development Objective: To support the Government’s efforts to ensure accountable village governance and participatory village devel- opment. Intermediary Outcome #1: Development financing informed JIT analytics and n/a No Facilitation Ad- Ad- TBD - Facilitation survey n/a n/a On technical work informs facili- adapts and vice vice informed PNPM facilitator track transition of facilitation tation retains key to to im- role structure struc- principle of adapt prove Facilitator training curric- ture PNPM ulum & modules JIT analytics and techni- n/a No Design well Ad- Inputs TBD - Input to presentation on n/a n/a On cal work informs thinking con- adapted vice to de- new project concept track for possible new oper- cept to new to sign Development of Village ation to support Village institutional con- Excellence concept Law implementation framework cept Intermediary Outcome #2: Village Law policy/strategy informed and public debate stimulated # of high-level policy # briefings n/a 30 10 10 10 - 12 n/a n/a On briefings delivered (KSP, (to KSP, TNP2K, Menko track VP Office, TNP2K, Menko PMK, Bappenas) PMK, Bappenas) # of technical briefings # briefings n/a 35 15 10 10 - Approx. 20 n/a n/a On delivered to VL imple- (DJ-PK, DJ-Bina Pemdes, track menting agencies (MoF, DJ-PPMD) MoHA, MoV ) # of resource meet- # present., n/a 18 6 6 6 - Approx. 10 (Peer review, n/a n/a On ings for development peer workshop presenter, etc.) track partners review, updates # of joint technical mis- # missions n/a 30 10 10 10 - 15 n/a n/a On sions with development (various missions with track partners KOMPAK on training modules, capacity assess- ment & FM reporting) Inclusion of key policy # contri- n/a 3 1 1 1 - 1 n/a n/a On issues in IEQ or similar butions (Q4 2015 edition on DD track flagship publication formula and disburse- ment) Intermediary Outcome #3: Client capacity strengthened # implementing regula- # regula- n/a 13 6 7 TBD - 8 n/a n/a On tions informed by policy tions in total track & technical advice 2x PP revisions; 1x PMK revision; 5x Permendes. # of implementing # guide- n/a 12 6 6 TBD - 11 n/a n/a On guidelines/modules lines, 6x training modules track informed by technical modules, (DJ-Bina Pemdes); 3x advice etc. training modules (DJ-Bi- na Pemdes); 2x guidelines (DJ-PPMD). # of joint technical mis- # missions n/a 15 5 5 5 - 6 n/a n/a On sions with government (DJ-Bina Pemdes, & BPKP) track Intermediary Outcome #4: Knowledge deepened # JIT quantitative surveys # surveys n/a 2 2 2 - 4 n/a n/a On conducted (Debottlenecking, Sen- track tinel Villages, Facilitator, VACM) # technical and/or # missions n/a 12 4 4 4 - 7 n/a n/a On analytical missions (inc. (corruption, FM reporting, track Jakarta-based and field- bottlenecks, allocation based) inequity, module pilots, VACM & ViPER, CPA) Facilitated exchange # s-s ex- n/a 3 1 1 1 - 0 n/a n/a S-S ex- of best practices with changes change client. to India post- poned to 2016. ANNEXES | 91 ANNEXES 92 | 2015 PSF PROGRESS REPORT ANNEX ONE: FINANCIAL OVERVIEW In 2015, the PSF continued to respond to the Window Two, which provides coordination and Government’s request for increased financial and technical implementation support to the Government, disbursed assistance to support its poverty reduction efforts through US$ 2.4 million in 2015, a decrease of 72 percent from the PNPM programs. The Joint Management Committee the previous year. Disbursements under Window Two are (JMC) approved US$ 11 million for new activities or forecasted at US$ 2 million in 2016. additional financing. Window Three, which provides support to Indonesian philanthropies and civil society groups working on PLEDGES AND CONTRIBUTIONS TO poverty reduction at the grassroots level, disbursed THE PSF US$ 100 thousand in 2015. All projects under window In 2015, pledges to the PSF remain the same as 2014, three were closed in 2015. US$454 million, as cash contributions increased by roughly 3 percent from US$ 392 million to reach US$ 405 million. 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 COMMITMENTS Generasi, PNPM M&E and Special Studies and PNPM With the realization of the project pipeline and topping Revolving Loan Fund. Disbursements under Window up of existing activities, the value of JMC approved Four are expected to remain strong in 2016 with a activities grew from US$ 403 million at the end of 2014 to projected disbursement of US$ 6 million for the TA for US$ 414 million at the end of 2015. About 73 percent of PNPM Generasi, Impact Evaluation of PNPM Generasi the commitments were for Window One activity, namely (Study), PNPM M&E and Special Studies program and Early direct budget support and co-financing. Childhood Education and Development (ECED) Frontline – Training and Dissemination and PASA Village Law. 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. Annex One: Financial Overview | 93 Figure 3. Share of funding by Figure 4. Donors’ contributions executing agencies (US$ million) 405 392 CY Contributions 365 Cumulative Contribution 4.9% 22.0% CSO WB 259 207 131 106 90 73.1% 76 Government 41 52 23 23 18 27 12 2008 2009 2010 2011 2012 2013 2014 2015 Figure 5. Approved commitments Figure 6. Total disbursement (US$ million) (US$ million) 404 414 336 343 299 305 246 220 181 122 90 36 37 42 2 9 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 Figure 7. Disbursements Performance Figure 8. CY 15 Disbursement Plan vs CY 14 Actual (US$ million) disbursement (US$ million) Undisbursed Commitments at Year Start Disbursed Within the Year 124 33 CY 15 Actual Disbursement 105 99 97 26 CY 16 Disbursement Plan 86 65 54 59 52 36 34 37 28 4 6 2 3 7 0 0 2009 2010 2011 2012 2013 2014 2015 WINDOW 1 WINDOW 2 WINDOW 3 WINDOW 4 Support Implementation On-granting to M&E and to Special and Coordination Indonesian Special Program Support Civil Society 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 2015 Total Government of Netherlands 14.67 4.50 0.83 11.90 - - - 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 Account- - - - - - 22.46 10.89 12.10 45.45 Indonesia Government of The United States of - - 64.70 24.81 - 4.85 - 94.36 America SUB-TOTAL 22.95 17.81 90.35 76.38 51.60 106.05 27.30 12.10 404.53 Investment Income 0.44 0.40 0.34 0.18 0.35 0.33 0.27 0.20 2.51 SUB-TOTAL 23.39 18.21 90.69 76.56 51.94 106.39 27.57 12.30 407.04 Administration Fee (1%) 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 2008 2009 2010 2011 2012 2013 2014 2015 (CUMULATIVE) Approved Commitments 37.39 42.25 90.27 220.44 305.36 342.80 403.65 414.37 Disbursements 1.84 8.52 36.20 121.84 181.16 246.14 298.52 335.84 Undisbursed trust funds and grants 35.56 33.73 54.07 98.60 124.19 96.66 105.13 78.53 ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 | 95 WINDOW ONE: DIRECT BUDGET SUPPORT AND CO-FINANCING 2008 2009 2010 2011 2012 2013 2014 2015 Approved Commitments 16.00 16.00 44.25 156.88 222.22 216.79 298.39 300.76 1 PNPM Generasi ( Community CCT ) Scale-up - - - - - 31.70 31.70 113.34 119.37 Healthy and Bright Generation 2 PNPM Urban in Aceh - - - 24.81 23.50 23.50 23.50 23.50 3 PNPM Generasi ( Community CCT ) Scale-up - - 10.20 38.32 73.32 73.32 73.32 67.28 4 Early Childhood Education and Development (ECED) - - - - - - - 2.40 Services (RETF) 5 PSF Disaster Mgt Support - PNPM Rural (USAID - - - 13.90 13.90 13.90 13.90 13.88 TF071562) 6 PSF Disaster Mgt Support - PNPM Rural (MDTF - - - 0.20 0.20 - - - TF070967) 7 PSF Disaster Mgt Support - Rekompak (MDTF - - - 0.40 0.40 0.40 0.40 0.40 TF070967) 8 PSF Disaster Mgt Support - Rekompak (USAID - - - 11.10 11.10 11.10 11.05 11.05 TF071562) 9 PNPM Green/Renewable Energy 16.00 16.00 34.05 34.05 34.00 30.68 30.68 30.68 10 Global Financial Crisis Supplement (GFCS) for PNPM - - - 32.70 32.70 30.84 30.84 30.84 Rural (AF) 11 PSF Disaster Mgt Support - PNPM Urban - - - 1.40 1.40 1.34 1.34 1.34 Disbursements - 1.60 19.39 91.27 130.26 177.15 215.85 248.51 1 PNPM Generasi ( Community CCT ) Scale-up - - - - - - 10.78 40.16 72.73 Healthy and Bright Generation 2 PNPM Urban in Aceh - - - - - 6.40 14.50 20.30 3 PNPM Generasi ( Community CCT ) Scale-up - - 10.20 32.84 42.34 72.61 73.32 67.28 4 Early Childhood Education and Development (ECED) - - - - - - - - Services (RETF) 5 PSF Disaster Mgt Support - PNPM Rural (USAID - - - 5.87 11.55 13.00 13.54 13.88 TF071562) 6 PSF Disaster Mgt Support - PNPM Rural (MDTF - - - - - - - - TF070967) 7 PSF Disaster Mgt Support - Rekompak (MDTF - - - 0.40 0.40 0.40 0.40 0.40 TF070967) 8 PSF Disaster Mgt Support - Rekompak (USAID - - - 4.85 10.25 11.10 11.05 11.05 TF071562) 9 PNPM Green/Renewable Energy - 1.60 9.19 16.00 31.68 30.68 30.68 30.68 10 Global Financial Crisis Supplement (GFCS) for PNPM - - - 30.61 32.70 30.84 30.84 30.84 Rural (AF) 11 PSF Disaster Mgt Support - PNPM Urban - - - 0.70 1.35 1.34 1.34 1.34 Undisbursed Funds 16.00 14.40 35.06 98.45 134.30 112.25 155.86 52.24 1 PNPM Generasi ( Community CCT ) Scale-up - - - - - 31.70 20.92 73.18 46.64 Healthy and Bright Generation 2 PNPM Urban in Aceh - - - 24.81 23.50 17.10 9.00 3.20 3 PNPM Generasi ( Community CCT ) Scale-up - - 10.20 38.32 73.32 73.32 73.32 - 4 Early Childhood Education and Development (ECED) - - - - - - - 2.40 Services (RETF) 5 PSF Disaster Mgt Support - PNPM Rural (USAID - - - 8.03 2.35 0.90 0.36 - TF071562) 6 PSF Disaster Mgt Support - PNPM Rural (MDTF - - - 0.20 0.20 - - - TF070967) 7 PSF Disaster Mgt Support - Rekompak (MDTF - - - - - - - - TF070967) 8 PSF Disaster Mgt Support - Rekompak (USAID - - - 6.25 0.85 - - - TF071562) 9 PNPM Green/Renewable Energy 16.00 14.40 24.86 18.05 2.32 - - - 10 Global Financial Crisis Supplement (GFCS) for PNPM - - - 2.09 - - - - Rural (AF) 11 PSF Disaster Mgt Support - PNPM Urban - - - 0.70 0.05 - - - 96 | 2015 PSF PROGRESS REPORT WINDOW TWO: MICRO COORDINATION AND SUPERVISORY SUPPORT 2008 2009 2010 2011 2012 2013 2014 2015 Approved Commitments 11.95 12.90 19.37 30.31 36.34 50.04 54.58 54.00 1 PSF Secretariat/Operations Support 3.65 3.65 5.35 5.35 6.59 8.39 13.94 13.94 2 USAID Program Mgt and Administration - - - 2.89 2.89 2.89 3.04 3.04 3 PNPM Supervision & Monitoring (Rural) 4.00 4.00 6.00 6.15 5.12 5.35 7.73 7.80 4 National Community Empowerment Program In - - - - 0.35 0.35 1.86 1.86 Urban Areas For 2012-2014 Supervision 5 Village Training Program (BETF) - - - - 0.40 0.40 0.40 0.40 6 Village Training Program (RETF) - - - - 1.25 1.25 1.25 1.25 7 Creative Communities II (BETF) - - - - 0.27 0.27 0.34 0.34 8 PNPM Field Team Operations (Rural) - - - 1.50 2.53 2.80 4.10 4.10 9 Pro-Poor Planning and Budgeting - - - - 1.67 1.67 1.67 1.66 10 Socialization/Dissemination: Communication 2.00 2.00 2.50 4.35 4.35 4.35 4.35 4.32 Strategy 11 MIS/Info Management: Integrated MIS for PNPM - - 0.98 0.98 0.98 0.98 0.98 0.95 Mandiri (Simpadu II) 12 TA Support to Bappenas and Pokja Pengendali PNPM - - - 1.66 1.66 1.66 3.08 2.99 (Kesra) 13 Creative Communities II (RETF) - - - - 0.61 0.61 1.92 1.59 14 PNPM RESPEK: Barefoot Engineers Training Wave III - - - 1.75 1.75 4.09 4.09 3.93 15 Barefoot Engineers Training III (BETF) - - - - - 0.07 0.07 0.07 16 PNPM Community Facilitator Devt Program, Phase III - - - 1.19 1.19 1.19 1.19 1.19 17 Technical Assistance for PNPM Mandiri Operation, - - - - - 6.01 - - Delivery and Oversight 18 Technical Assistance for PNPM Mandiri Operation, - - - - - 2.44 - - Delivery and Oversight (USAID) 19 Technical Assistance for PNPM Mandiri Operation, - - - - - 0.55 - - Delivery and Oversight (PNPM Urban) 20 USAID Supervision and Operational - - - 0.15 0.15 0.15 - - 21 PNPM Green Awareness Raising Project - - - - 0.27 0.27 0.27 0.27 22 Green PNPM Env. Awareness: Pilot Project 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 23 PNPM Supervision & Monitoring (Urban) - - 0.50 0.80 0.80 0.79 0.79 0.79 24 PNPM Community Facilitator Devt Program - 0.95 0.95 0.95 0.95 0.95 0.95 0.95 25 Training of Local Auditor (Inspektorat Kota/Kab) in - - 0.30 0.30 0.29 0.29 0.29 0.29 PNPM Mandiri Perkotaan 2010 26 Policy Workshop - - 0.50 - - - - - Disbursements 0.92 3.21 8.05 12.87 22.78 33.08 41.62 43.40 1 PSF Secretariat/Operations Support 0.60 1.56 2.98 4.62 5.49 5.95 6.20 6.28 2 USAID Program Mgt and Administration - - - 0.03 0.63 1.64 2.52 2.97 3 PNPM Supervision & Monitoring (Rural) 0.22 1.29 2.65 4.09 5.19 5.73 6.33 6.88 4 National Community Empowerment Program In - - - - - 0.02 0.56 0.88 Urban Areas For 2012-2014 Supervision 5 Village Training Program (BETF) - - - - - 0.21 0.37 0.39 6 Village Training Program (RETF) - - - - - - 0.28 0.28 7 Creative Communities II (BETF) - - - - 0.07 0.25 0.30 0.34 8 PNPM Field Team Operations (Rural) - - - 0.15 1.89 3.01 3.93 4.10 9 Pro-Poor Planning and Budgeting - - - - - 0.74 1.62 1.66 10 Socialization/Dissemination: Communication 0.11 0.35 1.26 1.90 2.68 3.72 4.30 4.32 Strategy 11 MIS/Info Management: Integrated MIS for PNPM - - - 0.10 0.30 0.61 0.87 0.95 Mandiri (Simpadu II) 12 TA Support to Bappenas and Pokja Pengendali PNPM - - - 0.11 0.89 1.70 2.84 2.99 (Kesra) 13 Creative Communities II (RETF) - - - - - 0.60 1.69 1.59 ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 | 97 WINDOW TWO: MICRO COORDINATION AND SUPERVISORY SUPPORT 2008 2009 2010 2011 2012 2013 2014 2015 14 PNPM RESPEK: Barefoot Engineers Training Wave III - - - - 1.18 3.19 4.02 3.93 15 Barefoot Engineers Training III (BETF) - - - - - 0.01 0.03 0.07 16 PNPM Community Facilitator Devt Program, Phase III - - - - 0.19 1.12 1.19 1.19 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 - - - 0.05 0.15 - - - 21 PNPM Green Awareness Raising Project - - - - 0.27 0.27 0.27 0.27 22 Green PNPM Env. Awareness: Pilot Project - - - - 1.84 2.30 2.30 2.30 23 PNPM Supervision & Monitoring (Urban) - - 0.22 0.59 0.78 0.79 0.79 0.79 24 PNPM Community Facilitator Devt Program - 0.01 0.95 0.95 0.95 0.95 0.95 0.95 25 Training of Local Auditor (Inspektorat Kota/Kab) in - - - 0.29 0.29 0.29 0.29 0.29 PNPM Mandiri Perkotaan 2010 26 Policy Workshop - - - - - - - - Undisbursed Funds 11.03 9.68 11.32 17.59 15.52 20.43 17.85 10.60 1 PSF Secretariat/Operations Support 3.05 2.09 2.37 0.72 1.09 2.44 7.74 7.66 2 USAID Program Mgt and Administration - - - 2.86 2.26 1.25 0.52 0.06 3 PNPM Supervision & Monitoring (Rural) 3.78 2.71 3.35 2.06 (0.07) (0.38) 1.41 0.91 4 National Community Empowerment Program In - - - - 0.35 0.33 1.30 0.98 Urban Areas For 2012-2014 Supervision 5 Village Training Program (BETF) - - - - 0.40 0.40 0.40 0.01 6 Village Training Program (RETF) - - - - 1.25 1.25 1.25 0.97 7 Creative Communities II (BETF) - - - - 0.27 0.27 0.34 0.01 8 PNPM Field Team Operations (Rural) - - - 1.50 2.53 2.80 4.10 0.00 9 Pro-Poor Planning and Budgeting - - - - 1.67 0.92 0.05 - 10 Socialization/Dissemination: Communication 1.89 1.65 1.24 2.45 1.67 0.63 0.05 - Strategy 11 MIS/Info Management: Integrated MIS for PNPM - - 0.98 0.88 0.67 0.37 0.11 - Mandiri (Simpadu II) 12 TA Support to Bappenas and Pokja Pengendali PNPM - - - 1.55 0.77 (0.04) 0.25 - (Kesra) 13 Creative Communities II (RETF) - - - - 0.61 0.01 0.23 - 14 PNPM RESPEK: Barefoot Engineers Training Wave III - - - 1.75 0.57 0.89 0.07 - 15 Barefoot Engineers Training III (BETF) - - - - - 0.06 0.04 - 16 PNPM Community Facilitator Devt Program, Phase III - - - 1.19 1.00 0.07 0.00 - 17 Technical Assistance for PNPM Mandiri Operation, - - - - - 6.01 - - Delivery and Oversight 18 Technical Assistance for PNPM Mandiri Operation, - - - - - 2.44 - - Delivery and Oversight (USAID) 19 Technical Assistance for PNPM Mandiri Operation, - - - - - 0.55 - - Delivery and Oversight (PNPM Urban) 20 USAID Supervision and Operational - - - 0.10 - 0.15 - - 21 PNPM Green Awareness Raising Project - - - - - - - - 22 Green PNPM Env. Awareness: Pilot Project 2.30 2.30 2.30 2.30 0.46 - - - 23 PNPM Supervision & Monitoring (Urban) - - 0.28 0.21 0.02 - - - 24 PNPM Community Facilitator Devt Program - 0.94 - - - - - - 25 Training of Local Auditor (Inspektorat Kota/Kab) in - - 0.30 0.01 0.00 - - - PNPM Mandiri Perkotaan 2010 26 Policy Workshop - - 0.50 - - - - - 98 | 2015 PSF PROGRESS REPORT WINDOW THREE: PNPM AND CIVIL SOCIETY (ON-GRANTING TO INDONESIAN CIVIL SOCIETY) 2008 2009 2010 2011 2012 2013 2014 2015 Approved Commitments - - 4.22 4.27 11.52 29.67 11.96 10.79 1 PNPM Window 3 - PNPM Peduli Phase II - - - 0.35 1.56 1.56 1.56 1.56 2 Supporting Disabled People Organizations (DPOs) - - - - 0.55 0.84 0.84 0.84 to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF) 3 Supporting Disabled People Organizations (DPOs) - - - - 1.25 0.96 - - to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF) 4 PNPM Peduli Executing Organization: Kemitraan - - - 1.56 2.73 3.34 3.84 3.84 5 PNPM Peduli Executing Organization: Lakpesdam - - - 0.87 1.52 1.84 2.05 2.03 6 PNPM Peduli Executing Organization: ACE (Assoc for - - - 1.28 1.97 2.46 2.37 2.37 Community Empowerment) 7 PNPM Window 3 - PNPM Peduli Phase I - - 0.22 0.22 0.17 0.17 0.17 0.17 8 PNPM Window 3 Phase I - PNPM Peduli (Capacity of - - 4.00 - 1.77 1.84 1.14 - Philantrophy) 9 PNPM Peduli Phase II - Additional Financing (RETF) - - - - - 15.95 - - 10 PNPM Peduli Phase II - Additional Financing (BETF) - - - - - 0.70 - - Disbursements - - 0.05 1.43 6.34 9.03 10.33 10.43 1 PNPM Window 3 - PNPM Peduli Phase II - - - 0.06 0.67 1.10 1.36 1.46 2 Supporting Disabled People Organizations (DPOs) - - - - - - 0.56 0.58 to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF) 3 Supporting Disabled People Organizations (DPOs) - - - - - 0.27 - - to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF) 4 PNPM Peduli Executing Organization: Kemitraan - - - 0.75 2.12 3.25 3.84 3.84 5 PNPM Peduli Executing Organization: Lakpesdam - - - 0.16 1.42 1.84 2.04 2.03 6 PNPM Peduli Executing Organization: ACE (Assoc for - - - 0.29 1.97 2.41 2.37 2.37 Community Empowerment) 7 PNPM Window 3 - PNPM Peduli Phase I - - 0.05 0.17 0.17 0.17 0.17 0.17 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 - - 4.17 2.84 5.18 20.63 1.63 0.36 1 PNPM Window 3 - PNPM Peduli Phase II - - - 0.29 0.89 0.45 0.19 0.10 2 Supporting Disabled People Organizations (DPOs) - - - - 0.55 0.84 0.28 0.26 to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF) 3 Supporting Disabled People Organizations (DPOs) - - - - 1.25 0.69 - - to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF) 4 PNPM Peduli Executing Organization: Kemitraan - - - 0.81 0.62 0.10 - - 5 PNPM Peduli Executing Organization: Lakpesdam - - - 0.70 0.10 0.01 0.02 - 6 PNPM Peduli Executing Organization: ACE (Assoc for - - - 0.99 - 0.05 - - Community Empowerment) 7 PNPM Window 3 - PNPM Peduli Phase I - - 0.17 0.05 - - - - 8 PNPM Window 3 Phase I - PNPM Peduli (Capacity of - - 4.00 - 1.77 1.84 1.14 - Philantrophy) 9 PNPM Peduli Phase II - Additional Financing (RETF) - - - - - 15.95 - - 10 PNPM Peduli Phase II - Additional Financing (BETF) - - - - - 0.70 - - ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2015 | 99 WINDOW FOUR: TECHNICAL ASSISTANCE TO PNPM MANDIRI 2008 2009 2010 2011 2012 2013 2014 2015 Approved Commitments 9.44 13.35 22.44 28.97 35.28 46.30 38.72 48.82 1 TA for PNPM Generasi - CCT 1.25 3.16 4.41 4.41 5.82 5.82 8.08 8.07 2 PNPM M&E, Special Studies (Incl. Infras Census for Ind 5.00 5.00 6.56 9.66 9.66 14.41 14.36 12.84 villages) 3 Impact Evaluation of PNPM Generasi - - - - - - 0.05 2.02 4 Susenas CE - - - - - - - 0.17 5 ECED (Early Childhood Education and Development) - - - - - - - 1.65 Frontline - Training Enhancement and Dissemination 6 ECED (Early Childhood Education and Development) - - - - - - - 1.35 Impact Evaluation, Implementation Support, Monitoring & Evaluation 7 Village Law PAAA Program - - - - - - - 5.15 8 Village Law PAAA - Governance Sub-tasks - - - - - - - 1.70 9 Micro Finance Development: PNPM Revolving Loan - - 4.21 8.89 8.89 8.89 9.97 9.93 Fund (RLF) Cap.Bldg. 10 Technical Assistant to KPDT - - - - 0.41 0.41 0.41 0.10 11 National Community Empowerment Program In - - - - 0.96 0.96 (0.00) (0.00) Urban Areas For 2012-2014 BETF for Technical Assistance 12 PNPM Green/Renewable Energy ( TA) 2.25 2.25 2.25 1.00 0.74 0.74 0.73 0.73 13 Local Government Capacity Development ( Training - - 1.43 1.43 1.43 1.43 1.72 1.72 of Loc Gov’t) 14 Delivering Services to Poor Community 0.94 0.94 0.94 0.94 0.77 0.77 0.77 0.77 15 Poverty Engagement, Knowledge & Action Program - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 16 ID Urban Pov Analysis, Program Review and Urban - - 0.64 0.64 0.64 0.63 0.63 0.63 Evaluation 17 Increasing Accountability Capacity in PNPM – PNPM - - - - 1.32 1.32 - - Justice Services (BETF) 18 Increasing Accountability Capacity in PNPM – PNPM - - - - 2.64 2.64 - - Justice Services (RETF) 19 Legal Aid and Community Legal Empowerment - - - - - 4.36 - (RETF) 20 Legal Aid and Community Legal Empowerment - - - - - 1.93 - (BETF) Disbursements 0.92 3.70 8.71 16.26 21.78 26.87 30.72 33.51 1 TA for PNPM Generasi - CCT 0.62 1.77 2.80 3.11 3.90 4.68 5.17 5.86 2 PNPM M&E, Special Studies (Incl. Infras Census for Ind 0.29 1.27 3.13 6.85 8.03 9.33 10.30 11.10 villages) 3 Impact Evaluation of PNPM Generasi - - - - - - 0.01 0.04 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 - - - - - - - 0.61 8 Village Law PAAA - Governance Sub-tasks - - - - - - - 0.02 9 Micro Finance Development: PNPM Revolving Loan - - 0.32 1.97 4.27 6.75 9.30 9.93 Fund (RLF) Cap.Bldg. 10 Technical Assistant to KPDT - - - - 0.02 0.02 0.10 0.10 11 National Community Empowerment Program In - - - - 0.09 0.26 (0.00) (0.00) Urban Areas For 2012-2014 BETF for Technical Assistance 12 PNPM Green/Renewable Energy ( TA) - 0.01 0.12 0.24 0.55 0.73 0.73 0.73 13 Local Government Capacity Development ( Training - - 0.00 0.95 1.54 1.72 1.72 1.72 of Loc Gov’t) 100 | 2015 PSF PROGRESS REPORT WINDOW FOUR: TECHNICAL ASSISTANCE TO PNPM MANDIRI 2008 2009 2010 2011 2012 2013 2014 2015 14 Delivering Services to Poor Community 0.00 0.30 0.59 0.76 0.77 0.77 0.77 0.77 15 Poverty Engagement, Knowledge & Action Program - 0.35 1.73 2.00 2.00 2.00 2.00 2.00 16 ID Urban Pov Analysis, Program Review and Urban - - 0.00 0.39 0.63 0.63 0.63 0.63 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 8.53 9.65 13.73 12.71 13.50 19.43 8.00 15.32 1 TA for PNPM Generasi - CCT 0.63 1.39 1.60 1.30 1.92 1.14 2.91 2.21 2 PNPM M&E, Special Studies (Incl. Infras Census for Ind 4.71 3.73 3.43 2.81 1.63 5.08 4.06 1.74 villages) 3 Impact Evaluation of PNPM Generasi - - - - - - 0.04 1.98 4 Susenas CE - - - - - - - 0.17 5 ECED (Early Childhood Education and Development) - - - - - - - 1.65 Frontline - Training Enhancement and Dissemination 6 ECED (Early Childhood Education and Development) - - - - - - - 1.35 Impact Evaluation, Implementation Support, Monitoring & Evaluation 7 Village Law PAAA Program - - - - - - - 4.54 8 Village Law PAAA - Governance Sub-tasks - - - - - - - 1.68 9 Micro Finance Development: PNPM Revolving Loan - - 3.89 6.92 4.62 2.14 0.67 - Fund (RLF) Cap.Bldg. 10 Technical Assistant to KPDT - - - - 0.40 0.40 0.32 - 11 National Community Empowerment Program In - - - - 0.87 0.70 0.00 - Urban Areas For 2012-2014 BETF for Technical Assistance 12 PNPM Green/Renewable Energy ( TA) 2.25 2.24 2.13 0.76 0.19 0.00 - - 13 Local Government Capacity Development ( Training - - 1.43 0.48 (0.11) (0.29) - - of Loc Gov’t) 14 Delivering Services to Poor Community 0.94 0.64 0.35 0.19 - - - - 15 Poverty Engagement, Knowledge & Action Program - 1.65 0.27 0.00 (0.00) - - - 16 ID Urban Pov Analysis, Program Review and Urban - - 0.64 0.25 0.01 - - - Evaluation 17 Increasing Accountability Capacity in PNPM – PNPM - - - - 1.32 1.32 - - Justice Services (BETF) 18 Increasing Accountability Capacity in PNPM – PNPM - - - - 2.64 2.64 - - Justice Services (RETF) 19 Legal Aid and Community Legal Empowerment - - - - - 4.36 - - (RETF) 20 Legal Aid and Community Legal Empowerment - - - - - 1.93 - - (BETF) 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 Methodology Main Findings 1 PNPM Rural Impact Quantitative • Real per capita consumption gains of 9.1 % for households in PNPM Evaluation (propensity Rural areas http://www.pnpm- score matching); • The gains were higher for poor households and poor sub-districts support.org/publication/ endline 2010 (11.8% and 12.7% respectively) pnpm-rural-impact- • Households in PNPM areas were 2.1% more likely to move out of evaluation-report-2012 poverty • Access to health services increased by 5.1% for households in PNPM areas 2 PNPM Rural Qualitative Qualitative, • Participation, transparency, and accountability were strong within the Impact Evaluation multi-years program, especially at the sub-district and village levels http://www.pnpm- (2007 and 2010) • PNPM is most effective at reducing poverty and impacting poor support.org/publication/ households when the needs of the poor are aligned with those of research-report- communities qualitative-study- impact-pnpm-rural- east-java-west-sumatra- southeast 3 PNPM Rural Qualitative • Marginalized groups have limited participation in PNPM meetings, Marginalized Groups (2010) which were still dominated by elites and interest groups Study • Although facilitation/project procedures have often led to increased http://www.pnpm- participation rates, they has not encouraged active or influential support.org/publication/ participation of marginalized groups in the development of proposals marginalized-groups- • Officials and leaders of interest groups (religious and traditional pnpm-rural 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 Quantitative • Many communities still found it difficult to maintain existing in Maintaining (repeated infrastructure projects Infrastructure Study: surveys every • The cost of maintaining infrastructure was up to 2.8 percent of Evidence from Rural quarter in a a household’s total consumption - although small, it is likely Indonesia year to capture burdensome for poor households http://www. cyclical income • Although villagers are willing to pay for the maintenance of pnpm-support.org/ fluctuation, infrastructure, the amount that communities are willing to pay does publication/village- 2010) not cover all infrastructure maintenance needs capacity-maintaining- • The communities’ willingness to pay is strongly influenced by the infrastructure-evidence- direct impact of the infrastructure on individual households and rural-indonesia institutional responsiveness, in terms of complaint handling 5 PNPM Generasi Impact Quantitative • Significant impacts on all 12 indicators Evaluation (randomized • The strongest improvements among health indicators were for the http://www.pnpm- control trial, frequency of weight checks for young children support.org/publication/ baseline 2007, • The improvement in education indicators was most notable in the indonesias-pnpm- endline 2010) increased school participation rate among the primary school-age generasi-program-final- group impact-evaluation- • In terms of long-term impact, there was about 10 percent decrease report-2011 in malnutrition, compared with control areas 6 PNPM Generasi Qualitative, • Communities, village elite, and service providers considered PNPM Qualitative Evaluation multi-years Generasi more beneficial to maternal child health (MCH) and basic http://pnpm-support. (2007, 2010) education than other programs — it offered wide variety of aid, org/data/pdf/pnpm- accessible to almost everyone, and could complement other existing evaluations/2008/ programs Qualitativebaseline • PNPM Generasi contributed to increased utilization of MCH services studyforPNPM through subsidized costs for delivery, transport for pre- and post- GenerasiQualitative natal checks, supplementary foods, and transport to visit health posts. ImpactEvaluation • PNPM Generasi also contributed to a lower level of school dropouts %20(1).pdf 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 7 PNPM RESPEK Mixed-methods • All infrastructure samples evaluated were of good to moderate Infrastructure (2011) quality - a significant achievement considering major and Community implementation challenges in Papua and West Papua Organization Capacity • 67% of the infrastructure built were utilized by the communities Evaluation • PNPM RESPEK improved administrative capacity of local facilitators, http://www.pnpm- but not facilitation capacity support.org/publication/ evaluation-pnpm- respek-village- infrastructure-and- institutional-capacity 8 PEKKA Impact Quantitative • Female-headed households (HH) have lower subjective welfare, Evaluation Baseline (2011) bleaker view of their future, and negative mental state Report • No differences between female and male-headed HHs in terms of http://psflibrary.org/ per capita expenditure, access to financial services and government catalog/repository/3715_ social assistance, and assets PEKKA%20Impact%20 • Female-headed households have lower per capita income but the Evaluation%20 differences disappear after controlling for age and education. This Baseline%20Report.pdf difference persists for the poorest sub- population 9 Perception of Local Qualitative • Local governments generally perceived PNPM (Rural and Urban) as Governance Study (2010) programs with very high participation rate, better transparency and http://psflibrary.org/ stronger accountability mechanism compared to other programs catalog/repository/ • Participation is the principle that is most readily adopted by Governance%20 local governments for their own programs. Transparency and Review%20of%20 accountability, however, are not yet being adopted by most local PNPM%20 governments Rural%202012.pdf • 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 10 Rapid Assessment of Qualitative • Quality of women’s participation was mixed in study areas and is still Women’s Participation (2012) not maximized in PNPM • Women’s involvement in the project cycle is still low beyond the http://www.pnpm- initial project stages of socialization and needs assessment support.org/publication/ • Women’s proposals that are funded are usually infrastructure, rather pnpm-womens- than e.g., capacity-building and trainings that are requested when participation-study- the local actors provide a more in-depth analysis of women’s needs report • Local initiatives and strategies around women’s participation existed but were yet to be integrated into additional general local decision- making processes 11 Local Level Qualitative/ • The state of local governance in PNPM is mixed: it is still remarkably Governance Review Action Research strong, but faces problems http://www.pnpm- (2012) • Participation rates are still mostly high, but the quality of participation support.org/publication/ has declined in some places governance- • There are weaknesses in transparency and information-sharing: the review-pnpm-rural- performance of accountability mechanisms in the program varies, community-level- and the incidence of serious corruption is up analysis-final-report • 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 Quantitative • Similar to 2005 results ( Torrens, 2005), the EIRR varied among sub- (EIRR) of PNPM-Rural (economic projects with a median value of 30 - 50% Infrastructure Sub- analysis), small • The average general income multiplier is 1.3 Projects scale study • Sub-projects are generally 25 - 30% cheaper than projects built using http://www.pnpm- in 20 villages typical local government contractors support.org/publication/ assessing 48 laporan-akhir-studi- sub-projects skala-kecil-analisis- using similar manfaat-ekonomi- methodology as proyek-infrastruktur- in 2005 exercise pnpm ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009-2014 AND IN 2015 | 103 Evaluations/Studies Methodology Main Findings 13 Village Infrastructure Quantitative • Comprehensive data on basic infrastructure availability and quality Census (village level (including health and education facilities) in nearly all urban and rural http://www.pnpm- census) - villages in Indonesia (over 76,000 villages) support.org/publication/ piggybacking • A consistent picture of geographic variation in the supply of basic infrastructure- on PODES 2011 infrastructure across Indonesia. In general, the island of Java and the census-report- province of Bali perform best, while local needs for investment still infrastructure-supply- exist in these regions, and particularly so in the provinces of West readiness-indonesia- Java and Banten achievements-and • 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 PNPM- Rural in terms of location selection and the allocation of block-grants 14 Local Level Institutions Mixed-methods • A decade after the last round of LLI, almost half of the villages studied 3 (LLI3) (longitudinal maintained the same local capacity (defined as the ability to solve http://www.pnpm- study, 1st one in common problems collectively), about a third experienced declines support.org/publication/ 1996 and the in capacity, and a quarter experienced improvements in capacity local-level-institution- 2 in 2001); nd • Declines in capacity were mostly attributed to deteriorating access study-3-overview- 40 villages in to natural resources, nascent signs of reduced reciprocity, and report 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 15 Integration of Qualitative, 18 • Proliferation of programs is largely considered to be beneficial for Community-based villages in 3 villagers, with greatest benefit being the availability of additional Poverty Reduction provinces facilities and improved quality of public services, improved access Programs at (transport) and increased incomes, evenly-distributed development, Community Level availability of capital and more business opportunities, and improved http://www.pnpm- local community and village government capacities support.org/publication/ • Integration between empowerment programs is generally not done qualitative-study- systematically, usually in the form of sporadic initiatives to synergize proliferation-and- programs that have the same targets and beneficiaries to avoid integration-community- overlap. There are no initiatives at the district level that encourage empowerment- actors at the village level to synergize by forming program- programs-central) implementing 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 Qualitative, 6 • Within the programs, community groups in PNPM Rural and Urban Study (report villages/urban performed well, but almost no spill-over of PNPM principles and published by Poverty wards in 5 processes outside of PNPM, both at the village and kecamatan level Reduction Support provinces (PNPM is seen as merely a project) Facility [PRSF]) • Communities’ experience participating in PNPM did not foster http://www.pnpm- collective awareness to demand their governments (esp. village support.org/publication/ governments) to do the same despite the benefits felt from PNPM studi-kelompok- • At the village level, power is often concentrated in the hands of masyarakat-pnpm 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 Quantitative • Bantuan Keuangan Peumakmu Gampong (BKPG) has been successful Peumakmu Gampong through cluster in producing infrastructure and projects that are perceived to benefit (BKPG) Aceh sampling both the village as a whole and those living in close proximity to the Evaluation method from project. http://psflibrary.org/ 600 households • Despite the favorable views, 49 percent of respondents did not know catalog/repository/ (20 households which particular projects were funded by BKPG, suggesting that the Evaluations%20of%20 each for 30 program’s functioning on a day-to-day basis is less well-known. BKPG%20in%20Aceh%20 villages) • In line with other findings from PNPM studies and other literature, Province.pdf 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 Qualitative • Overall, local communities perceived PNPM/RESPEK favorably, seeing Papua Beneficiary through mini it as a development program that actually delivered what had been Assessment (http:// ethnography in promised. psflibrary.org/catalog/ two provinces • Majority of communities from sample villages agreed that they repository/3906_ (Papua and had benefited from the program’s sub-projects, especially from Beneficiary%20 West Papua), infrastructure projects. Assessment%20of%20 five districts and • There are a number of implementation weaknesses that influenced PNPM-RESPEK_ENG.pdf ) 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. ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009-2014 AND IN 2015 | 105 Table 9.Ongoing Evaluations/Studies: 2015 - 2017 Expected Name of Timeline for No Study Description of Study Methodology Result 1 PNPM Rural The PNPM Rural Final Evaluation 2012-2015 aims to Quantitative The final report 2012-15 measure the program impacts as guided by PNPM Rural is expected to Evaluation Result Framework 2012-2015. This evaluation covers four be completed by key components, namely: (i) Technical Quality of three early Q1-2016 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. 2 The PNPM/ This survey is part of analytics conducted on PNPM/ Quantitative The report will RESPEK Survey RESPEK performance in terms of perceived benefits be completed (via SUSENAS) and implementation of CDD principles of participation, approx. March transparency, and accountability. A specific PNPM/RESPEK 2016 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. 3 PEKKA Endline The PEKKA evaluation aims to better understand how Quantitative Final report is Survey PEKKA can reduce poor female-headed households’ expected to be marginalization, namely their limited access and control ready by end of over resources and policies. This study utilizes panel Q1-2016 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. 4 PNPM Generasi PNPM Generasi Performance Monitoring Survey (PMS) aims Mixed Methods The quantitative Performance to update program performance on 12 main indicators component has Monitoring annually. The quantitative component involves more been completed Survey than 1,500 households and 90 )in 23 districts across in 2015 and seven provinces. The qualitative component conducted the qualitative in four villages in two provinces, aims to identify and component is analyze what the bottlenecks are throughout PNPM expected to be Generasi implementation, as well as to provide suggested finalized by end recommendations. of Q1-2016. 5 Village Utilizing longitudinal methods, this study will observe Mixed Methods To be completed Governance how the first two years of Village Law implementation by early Q1-2017 and affects village governance – whether the principles Community of good governance (participation, transparency and Empowerment accountability) can be articulated into managing the village Study resources in an accountable manner to benefit the general (“Sentinel community. This study will also ask how various groups in Villages”) 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. 6 SUSENAS Together with World Bank Research Group, and the Quantitative To be completed Consumption World Bank Poverty Team, the PSF Analytics Team carry by end of Q2- Experiment out the SUSENAS Consumption Experiment to support 2016 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. Expected Name of Timeline for No Study Description of Study Methodology Result 7 PNPM Generasi Utilizing randomized control trial (RCT ) and qualitative Mixed Methods Data collection Impact methods, this evaluation aims to see PNPM Generasi to start in Q3 Evaluation long-term impact as well as potential to adopt its incentive 2016 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 The accountability experiment will focus on elaborating Quantitative To be completed Initiative various factors that enable or constrain good governance by Q3-2016 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.