World Bank Documentdocuments.worldbank.org/curated/en/791111468772794489/pdf/multi0... · SMP TERBUKA -"Open" junior secondary education, a non-traditional approach SMP KECIL -"Small"

Document of

The World Bank

Report No. 15501-IND

STAFF APPRAISAL REPORT

INDONESIA

EAST JAVA AND EAST NUSA TENGGARA JUNIOR SECONDARY EDUCATIONPROJECT

NAY 20, 1996

East Asia and Pacific Regional OfficeCountry Department IIIPopulation and Huamn Resources Operations Division

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CURRENCY EQUIVALENTS(as of March 1996)

Currency Unit = Indonesian Rupiah (Rp)

US$1.00 = Rp 2,331Rp I million = US$429

FISCAL YEARApril I - March 31

ACADEMIC YEARJuly I - June 30

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

ADB - Asian Development BankAPBN - National Budget and Revenues (Anggaran Pendapatan dan Belanja Negara)BAPPENAS - National Development Planning AgencyBAPPEDA UI/I - Provincial/District Development Planning AgencyBUPATI - Head of Kabupaten (district)CAS - Country Assistance StrategyCPCU - Central Program Coordination UnitD-3 - Three-year post-secondary diploma courseDGPSE - Directorate-General of Primary and Secondary Education (MOEC)DIKNIVENUM - Directorate of General Secondary Education (MOEC)DIP - Government's Development budgetEBTA - Local School Examination (Evaluasi Belajar Tahap Akhir)EBTANAS - Final State Examination (Evaluasi Belajar Tahap Akhir Nasional)

administered by the Government.FKIP - Faculty of education of a universityGOI - Government of IndonesiaICB - International Competitive BiddingIDT - Program for Backward Villages (Inpres Desa Tertinggal)IKIP - Teacher Training Institute (Institut Keguruan dan Ilmu Pendidikan)JSE - Junior Secondary Education, same as SLTPKABUPATEN - DistrictKANDEP - Short for Kandep DikbudKANDEP DIKBUD - District level educational office. (Kantor Departemen Pendidikan dan

Kebudayaan Kabupaten). A constituent body of MOEC under KanwilKANIN - District level educational office. (Kantor Inspeksi). Alternative Kandep

structure.

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED (contd.)

KANWEIL - Provincial Office (Kantor Wilayah) of MOECKECAMATAN - Sub-districtKOTAMADYA - Urban districtMGMP - Subject-matter discussion and learning groups of teachers

(Musywara Guru Mata Pelajaran), a teacher training strategy.MIS - Management Information System

MOEC - Ministry of Education and CultureMOF - Ministry of FinanceMOHA - Ministry of Home Affairs

MORA - Ministry of Religious Affairs

MPW - Ministry of Public Works

MTs - Islamic Junior Secondary School (Madrasah Tsanawiyah)NCB - National Competitive BiddingNIC - Newly Industrialized Country

NTT - Nusa Tenggara Timur, province of East Nusa TenggaraOECF - Overseas Economic Cooperation Fund (Japan)OED - Operations Evaluation DepartmentPPIU - Provincial Project Implementation UnitPUSTEKKOM - Center for Educational Technology (MOEC)REPELITA - National Five-year Development Plan (Rencana Pembangunan

Lima Tahun)SI - Undergraduate degree program

S2 - Two-year master's degree program

S3 - Three-year doctorate level program

SD - Six-year primary school (Sekolah Dasar)SD INPRES - Primary School Project founded by Presidential mandate in the

1 970s (Sekolah Dasar atas Instruksi Presiden)SLTP - Junior secondary level school. (Sekolah Lanjutan Tingkat Pertama).

This includes regular SMP, public, private and Islamic JSE schools.

SMA - Three-year senior secondary school (Sekolah Menengah Atas)SMP - Three year junior secondary school (Sekolah Menengah Pertama)SMP TERBUKA - "Open" junior secondary education, a non-traditional approachSMP KECIL - "Small" (6 or 3 classroom) but regular junior secondary schoolSPA - Student Performance AssessmentSOE - Statement of expenditureSUSENAS - National Household Expenditure SurveyTA - Technical AssistanceTKB - Learning Center (Tempat Kegiatan Belajar) of SMP TerbukaTOR - Terms of ReferenceUT - Open University (Universitas Terbuka)

INDONESIA

EAST JAVA AND EAST NUSA TENGGARA JUNIOR SECONDARY EDUCATIONPROJECT

LOAN AND PROJECT SUMMARY

Borrower: Republic of Indonesia

Implementing Agency: Directorate-General of Primary and Secondary Education,Ministry of Education and Culture

Beneficiaries: Approximately 580,000 school children and out-of-school youth in theprovinces of East Java and East Nusa Tenggara (NTT), with emphasison girls and rural communities.

Poverty: Program of Targeted Intervention. The project would targetstudent scholarships, new and alternative schools, and over 60percent of quality intervention to poor rural areas.

Amount: US$99 million equivalent

Terms: Repayable in 20 years, including a grace period of 5 years, at theBank's standard variable interest rate for currency pool loans.

Commitment Fee: 0.75 percent on undisbursed loan balances, beginning 60 days aftersigning, less any waiver.

Financing Plan: See Table 4.3 under para. 4.7.

Economic Rate The economic rate of return for the project investment ranges fromof Return: 16 percent in East Nusa Tenggara to 18.3 in East Java. High

returns were found for both quality and access components.Returns on quality enhancements were generally higher (22percent) than for expansion of access in both provinces.

Staff AppraisalReport: No: 15501-IND

Project IdentificationNumber: ID-PE-37097

Map: IBRD No. 27959

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TABLE OF CONTENTS

Page No.

LOAN AND PROJECT SUMMARY ................ ............................................ i

GLOSSARY. . v

I. JUNIOR SECONDARY EDUCATION ISSUESA. Background ............................................................ 1B. Sector Issues and National Initiatives ............................................................ 4C .E ast Java ............................................................ 9D. East Nusa Tenggara ........................................................... 11

II. GOVERNMENT STRATEGY, LESSONS LEARNED ANDBANK INVOLVEMENTA. Government Strategy ........................................................ 14B. Lessons Learned ........................................................ 14C. Bank Strategy and Rationale for Involvement ....................................................... 16

m. THE PROJECTA. Project Objectives ........................................................... 18B. Project Performance Indicators ...................... ..................................... 18C. Project Components ........................................................... 18D. Project Targeting ........................................................... 19E. Project Economic Analysis .20F. Project Description ........................................................ 22

IV. PROJECT COSTS, FINANCING, PROCUREMENT & DISBURSEMENTA. Costs Estimates ........................................................... 31B. Financing ........................................................... 36C. Procurement ........................................................... 36D. Disbursement ........................................................... 40E. Accounts, Audits and Reports ........................................................... 41

This report is based on the findings of an appraisal mission (April 1996) to Indonesia comprising Antonio Gomes Pereira(Senior Education Specialist, Task Manager), Haneen Sayed (Economist) and Mieko Masuda (Operations Analyst), allfrom EA3PH. The report also drew on provincial proposals, contributions from the central and provincial offices of theMinistry of Education and Culture, and inputs from PHRD-funded consultants (see Annex 29). Valuable comments wereprovided by Brigitte Duces and Donald Hamilton (EA3PH). Dorothy N. Judkins assisted in the production of the report.Peer reviewers were Audrey Aarons (SAIPH), Bruno Laporte (HDD), Nisha Agrawal (EA3CO) and Ruth Kagia (EAIHR).Marianne Haug, Director, EA3, and Samuel Lieberman, Acting Chief, EA3PH, have endorsed the report.

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Page No.

V. PROJECT MANAGEMENT AND SUPERVISIONA. Project Management ........................................ 43B. Project Supervision .......... 44........................ 44

VI. PROJECT BENEFITS AND RISKSA. Expected Benefits ..................................... 47B. Environmental Impact ..................................... 47C. Sustainability ..................................... 48D. Risks ..................................... 48

VH. AGREEMENTS AND RECOMMENDATIONA. Agreements Reached ..................................... 51B. Recommendation ..................................... 52

TABLES AND GRAPHSTable 1I.1 Basic Data on Project Provinces ..................................... 3Table 1.2 Junior Secondary Education Indicators ..................................... 4Graph 1. I Projected 13-15 Population and JSE Enrollments in East Java ............ ................. 11Graph 1.2 Projected 13-15 Population and JSE Enrollments in NTT ..................................... 13Table 4. la Summary of Project Costs by Component and Province ................. ..................... 31Table 4. l b Summary of Project Costs by Component .......................................................... 32Table 4.2a Summary of Project Costs by Category of Expenditure and by Province ............. 33Table 4.2b Summary of Project Costs by Cateogory of Expenditure ............... ..................... 34Table 4.3 Financing Plan ............................................................. 36Table 4.4 Procurement Arrangements ............................................................. 37Table 6.1 Number of Beneficiaries of Project Investments ................................ ................. 47

BOX

Women and Education in East Java and NTT ............................................................. 8

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ANNEXES

1. Economic Analysis of the Junior Secondary Education Program and Project ................ 532. General Profile of East Java and NTT .................................................... 713. Structure of the Education System .................................................... 794. Basic Education Data .................................................... 815. Teacher Training .................................................... 866. Terms of Reference for the Science Education Study .................................................... 907. Management Training .................................................... 958. Public and Private Education ..................................................... 1009. Innovative Junior Secondary Education Modalities ..................................................... 10410. Junior Secondary Education Strategy Matrix .................................................... 10711. Stakeholder Identification and Consultation Process ..................................................... 10912. Bank Group-Financed Education and Training Projects .11213. Project Performance Indicators .11314. East Java and NTT District Ranking by Social Variables .11515. Selection Criteria for Construction Sites of Schools and Teacher Dormitories. 11716. Student Scholarship Program .11917. Criteria for Employment of Contract Teachers .12218. Project Cost Estimates and Summary Accounts by Year, and Component .12319. Procurement Plan .13520. Estimated Schedule of Disbursements .13721. Organization of the Ministry of Education and Culture .13822. Project Management Organization Structure .13923. Project Activities and Implementation Plan .14624. Technical Assistance Summary .15125. Supervision Plan .15226. Project Progress Monitoring and Reporting .15327. Terms of Reference for Technical Audits .15528. Selected Documents Available in the Project Files and Relevant Bibliography. 15829. Names of People Involved in Project Preparation .160

MAP IBRD No. 27959

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GLOSSARY

Completion Rate The ratio between the number of students completing aneducation cycle or level in a given year (T) as compared tothe number of students who entered the initial grade of thatcycle or level as many years earlier as those required to itsregular completion (i.e., T-3 for junior secondary educationin Indonesia).

Dropout Rate Percentage of students who abandon the system withoutcompleting an education cycle, level or grade (e.g., primaryeducation, junior secondary education).

Educational Attainment Number of formal school years achieved by a student.

Educational Achievement Magnitude achievement (scores) in any subject area,generally measured on the basis of national curriculumlearning objectives.

Gross Enrollment Rate (GER) Percentage of all children attending a cycle or grade ofschooling as compared to the respective age grouppopulation. GER is expected to be higher than NER.

Net Enrollment Rate (NER) Percentage of children of a given age group (e.g., 13-15 forjunior secondary education in Indonesia) enrolled in theircorresponding cycle or grade, as compared to the respectiveage group population. NER is expected to be lower thanGER.

Promotion Rate Percentage of the students enrolled in a given grade whoproceed to enroll in the next higher grade the followingacademic year.

Repetition Rate Percentage of students enrolled in a certain grade who arenot promoted to the next grade and who therefore enrollagain in the same grade the following year.

Retention Rate Percentage of students who have stayed at school during agiven cycle, level or grade, as opposed to dropout rate(those who left the system).

Transition Rate Percentage of students completing one school cycle (e.g.,primary) who enroll in the first grade of the next upper cycleor level (e.g., junior secondary) the following year.

1. JUNIOR SECONDARY EDUCATION ISSUES IN EAST JAVA AND EASTNUSA TENGGARA (NTT)

A. BACKGROUND

1.1 Over the past 25 years, the CGovemment of Indonesia (GOI) has demonstrated a strongcommitment to education and as a result, the country has achieved one of the best rates ofprimary education enrollment in the developing world. The Govemment led an enrollmentdrive and massive school building program in the 1970s (SD INPRES), sharply increasingprimary school services throughout its dispersed territory. The gross enrollment rates stood at75 percent in the early 1970s and went up to about 90 percent by the end of that decade. Bythe mid-1980s, gross enrollment rates exceeded 100 percent and by 1994/95 had reached 112percent. The effort is not complete because of quality concems and the need to increaseretention rates, but the achievements at this level have been remarkable. Annexes 1, 3 and 4provide basic data on the educational structure and administration in Indonesia (see also para.1.12).

1.2 The Government is now looking to future development needs, and has reiterated itsdetermination to pursue a proactive program of junior secondary education as part of the newlydesigned nine--year basic education system. Therefore, while maintaining its concem withquality primary education for all, the Government aims at universal basic education (grades 1-9) by 2008-9, as an imperative way to meet the human resource requirements for transformingthe economy from one based on natural resources to one relying more on industry andtechnology.

1.3 The decision to expand junior secondary education participation in Indonesia as rapidlyas feasible is justified for several reasons (see Annex I for detailed background). First,expansion appears to be a precondition for the rapid growth of the economy in the mediumterm, and particularly so in a rapidly modernizing province such as East Java (see paras. 1.26-1.30). Recent research on the development of East Asian economies indicates that with theachievement of near universal primary education, expanding enrollments at the secondary(junior and senior) level had a strong impact on economic growth. Secondary education playsthe role of providing more educated entrants to the labor force, enhancing workers' trainability,and providing qualified inputs into higher levels of education. In this regard, the Indonesianeconomy and labor market is in the midst of a structural transformation. Since 1990, there hasbeen a marked slow-down in employment creation in agriculture and an acceleration in the rateof growth of job creation in manufacturing, construction, transport and communication, andservices in general. After a period of wage stagnation in the 1980s, there are strong indicationsof rising real wage rates throughout the country and a marked decline of employment inagriculture. If sustained nationally for a decade or so, these trends imply the absorption ofremaining pockets of surplus labor, and as happened in other NICs, the transformation of anagrarian economy into one relying on the education and productivity of its workers. Social ratesof return to education computed from 1986-92 indicate that retums to junior secondaryeducation are the highest among the education subsectors. East Java, on a faster and moreadvanced economic path, is already reaching this turning point, whereas other regions such as

2 East Java and NTT Junior Secondary Education Project

East Nusa Tenggara (NTT') are not expected to reach it before the end of the decade (seeparas. 1.39-1.41).

1.4 The second justification for significant Government attention to junior secondaryeducation is that the number of JSE school places is still limited relative to demand, despitesubstantial outlays by parents and a significant private sector response (see Annex 1, Sections Iand II). This shortage is highlighted by several factors: the continued strong demand forgenerally more costly and often lower quality private junior secondary schools, large numbersof unsuccessful applicants to schools, the frequency of double shifts and large classes, and theuse of school library and laboratory space for routine classroom teaching.

1.5 A third rationale for Government intervention is to assist in removing barriers of costand isolation that keep many of the rural poor out of school, as is the case mainly in NTT. Thetotal cost to families of educating a child in junior secondary school accounts for 80 percent ofper capita household expenditure of the lowest income quintile. Junior secondary education istherefore beyond the reach of many of the poor and near poor. The opportunity costs ofkeeping children in school further exacerbate the problem (see Annex 1, Section 1).

1.6 A fourth rationale relates to likely externalities associated with investments insecondary education. Research from comparable countries has pointed to externalities such asreduced fertility and child mortality and improved nutritional status that correlate with femalesecondary education (see box on p. 8). For Indonesia, survey results indicate that a mother'seducation is an important determinant of prenatal care utilization: 25 percent of women withsome primary education do not use prenatal care compared to less than 10 percent of womenwith junior secondary education. Furthermore, analysis of nutritional status in Indonesia finds astrong effect of maternal education on children's nutritional status: for women with betweenzero and five years of education, an additional year of education has no impact on the child'snutritional status, while, among women with six to twelve (or more) years of education, anadditional year of schooling improves nutritional status significantly.

1.7 The role of the Govemment would therefore be to: (a) help expand the number ofschool places through a combination of direct investment and measures to stimulate furtherprivate sector/community participation in the provision of school places; (b) improve theteaching-learning quality of the existing and new junior secondary schools; and (c) ensure thatthe poor are given increased opportunity to participate in the expansion process of qualityeducation at the junior secondary level.

1.8 Sector Financing Plan. Achieving universal nine years of education will requiresignificant additional public resources to be channeled into the education sector overall and intobasic education, in particular. Estimates of the total costs of the junior secondary expansionprogram come to approximately $7.6 billion to be phased out over a ten-year period (seeAnnex I for details). The cost estimates assume that the private sector will at least maintain itshigh current share of about 40 percent of total enrollment. Additional financing of an average$120 million during the next ten years of expansion (assuming 6 percent per annum growth of

' The Indonesian name for East Nusa Tenggara is Nusa Tenggara Timur, or NTT, and thus, for the sakeof simplicity and comprehension, NTT is the acronym used in this document.

StaffAppraisal Report 3

the budget) would be required, implying that the budgetary allocation to junior secondaryeducation would need to increase from the current 13 percent to approximately 16 percent ofthe education budget in the next few years. Overall, Indonesia would need to increase itsallocation to education as a proportion of GDP by approximately 0.2 percent. This does nottake into account, however, increases in other education subsectors, which may equally berequired.

1.9 In order to finance the expansion, the Government has both increased its educationinvestments and requested help from donors to close the financing gap. In its most recentbudget allocations (1996/97) the education sector budget was increased by 20 percent, one ofthe highest increases of all GOI sectors. The corresponding budget for junior secondaryeducation saw a 24 percent rise over last year's budget allocation (see paras. 6.4-6.6).

1.10 Consistent with the important role it has played in basic education development, theGovernment is increasing its education investments and requesting help from donors (see para.2.1). These efforts include a proposed program of up to eight junior secondary educationprojects for which World Bank assistance would be sought over the next four to five fiscalyears. The present project, which encompasses the two provinces of East Java and Nusa TenggaraTimur (see Table 1.1 and Annex 2 for provincial profile), or about 1/5 of Indonesia's totalpopulation, is one of an initial series of three projects (the other two being the Central Indonesiaproject, which covers the provinces of Central Java, Central Kalimantan, West Kalimantan andYogyakarta, and the Sumatra Project, which covers the provinces of Aceh, West Sumatra, Jambi,Lampung and South Sumatra). The 1995 Book and Reading Development Project (Ln. 3887-IND) and the 1996 Secondary School Teacher Development Project (Ln. 3979-lND) willcomplement these efforts, as well as other planned basic education operations in other clustersof provinces. To promote efficiency and equity in the use of resources, the Government hasrecognized that educational development among and within the provinces must be balancedand appropriate to local conditions; meeting an acceptable standard of quality; and takingadvantage of lessons learned within and outside the country.

Table 1.1: Basic Data on Project ProvincesEast Java NTT | J % of Ind. Indonesia

Area (km2) 47,921 47,876 5% 1,929,411

Population ('000) 32,504 3,269 - 19% 186,242

Population density 678 68 97

Per capita GDP ('000 Rp.) 1,165 489.8 1,342

Number of districts 37 12* - 17% 288

Number of sub-districts 606 98 18% 3,609

Number of villages 8,378 1,723 . 1 16% 62,249

Source: Indonesia Bureau of statistics ( 1993); susenas ( 1992)*: A thirteenth district has been recently added, with the creation of the Kotamadya of Kupang, the capital city.

4 East Java and NIT Junior Secondary Education Project

1.11 Although the Government can and should promote expansion at the junior secondarylevel, it is also aware that Indonesia will not be able to reach universal basic educationenrollment until graduation rates improve at the primary level. Despite high gross enrollmentrates at the primary level overall, about 25 percent of pupils, especially in the more difficultremote areas, do not complete the full six years of education. Universal nine-year educationthus depends on improving the efficiency of the primary system and producing an expandedpool of candidates for junior secondary school. The Government has started addressing thisissue through a series of initiatives, including the Primary Education Quality ImprovementProject (Ln. 3448-IND) which is piloting measures for improving education quality. Satisfyingexisting unmet demand, even at current primary-to-junior-secondary transition rates during theproject period, is seen as an important objective. This will help satisfy communities that arelukewarm to primary education because of lack of opportunities for secondary education. Thecombined effects of these measures would be to improve the transition rates and the potentialfor accelerating the development of junior secondary education in the future.

1.12 Structure of the Education System. The education system in Indonesia (see Annex3) consists of a six-year primary school cycle, junior and senior secondary school cycles ofthree years each, and a post-secondary system ranging from one to six years. Primary educationis largely the domain of Government: nearly five out of six pupils are enrolled in publicschools. Private schooling plays a much greater role in secondary education. Private schoolsaccount for 41 percent of enrollment in junior secondary education and 54 percent in seniorsecondary. Junior secondary education is provided through 8,712 public (46 percent) and10,279 private (54 percent) general junior secondary schools (the Sekolah Menengah Pertama,or SMP) and a remaining 300 vocational schools that emphasize either technical or homeeconomics subjects, all of which are administered by the Ministry of Education and Culture(MOEC). The Ministry of Religious Affairs (MORA) administers the 582 public and 7,547private Muslim (Madrasah Tsanawiyah, or MTs) junior secondary schools. At the seniorsecondary level, 3,241 public and 10,380 private schools enroll a total of 4.2 million students,for a gross enrollment rate of 34 percent (see Annex 4 for a summary of number of studentsand teachers by type of school).

B. SECTOR ISSUES AND NATIONAL INITIATIVES

Table 1.2: Junior econdary Education IndicatorsEast Java NTT Indonesia

Primary GER 108% 111% 111%

Primary retention rate 85% 59% 79%

Transition rate to junior sec. 63% 72% 64%

Junior Secondary GER 55% 39% 54%

Private enrollments/total 45% 41% 41%

Sources: MOEC statistics 1993-94


1.13 Challenges in the provision of junior secondary education are common to all provincesin Indonesia, though not to the same extent. These challenges are to (a) expand equitableaccess to junior secondary education; (b) improve the quality of education throughout theprovinces; and (c) make education management more efficient as the provinces assumeincreased responsibility. East Java and NTT each face these challenges under specificeducational constraints. Access is restricted mainly by the lack of places; high direct,transportation, and opportunity costs; and, in NTr particularly, great distances and lirnitedtransportation networks (see paras. 1.31-1.34 for East Java, and 1.42-1.44 for NTT). Inresponse, the project would help East Java to reach 75 percent of the 13-15 age-groupcoverage (up from the current 55 percent), and NTT to reach 60 percent (up from the present39 percent) by the year 2001 (see Table 1.2). The most important factors affecting quality andinternal efficiency are: teacher skills and deployment; the availability of library andsupplementary books, teaching materials, science education equipment and methodology,pedagogical supervision; educational assessment system and school management; the role ofprivate education; and the education of women.

1.14 Teachers. Although there is an excess number of teachers available in aggregate, adistribution problem exists nevertheless between provinces and, within the same province,between rural and urban areas. Some provinces like East Java have a large pool of teachercandidates (in 1994-95 48,000 candidates took the general exam organized to select 2,000teachers). Others like NTT rely on teachers from other regions to cover a deficit in locally-bomteachers. Also, urban centers have a surplus of Pancasila teachers, but rural areas (and moreparticularly in remote regions) face a chronic shortage of teachers for core subjects such asBahasa Indonesia, Mathematics, Science and English. This is because most rural teachingpositions are considered undesirable by urban teachers (where the majority of the current stockis from), and soon after being appointed to rural areas, many manage to be replaced into urbanschools or find excuses to be absent for long periods. To remedy the shortage of teachers inrural and remote areas, the project would support, on a pilot basis, the hiring of "contractteachers" in rural schools in key academic areas (see paras. 3.25, 3.45). It would also provideteacher dormitories (see paras. 3.19 and 3.39). In addition, the Govemment is alreadyproviding some financial compensation for hardship. Over the longer term, the solution plannedto keeping teachers in rural areas is local recruitment and training (see Annex 5).

1.15 The unequal distribution of teachers has different consequences in the urban areaswhere many teachers are underutilized, and high levels of absenteeism are observed. Teachersgenerally spend only a limited time in school because of the very few hours they are assigned toteach. This is compounded by the lack of teacher rooms in many schools, and the absence ofan environment which promotes interaction among teachers. The school principal is usuallyassisted by four deputies only one of whom is responsible for pedagogical supervision.Management is therefore focused on purely administrative issues rather than the educationalprocess. And the opportunity to promote improved teaching in the various subjects is lost.Teachers recognize this gap and have organized subject matter discussion and leamning groups(MGMP) as a part of their association effort to foster cooperation and feedback.

1.16 The de-centralization of the PKG and MGMP system (see Annex 5) to the district leveland the systematic involvement of regional MOEC staff, including supervisors and principalsin the training program (both supported by the proposed project, see paras. 3.24 and 3.44)

6 East Java and N17 Junior Secondary Education Project

would help address this issue. Establishment of subject matter groups would be encouraged inschools, similar to those run by the teacher associations. These groups would gradually beinstitutionalized as subject departments in the larger schools. Within these departmentsteachers would take collective responsibility for student achievement in a given subject areaand provide systematic support for new and less experienced teachers.

1.17 Providing incentives to teachers to spend more time on teaching and reduceabsenteeism also needs to be considered. The costs of this can be high, however, as a generalsalary increase for all educational staff would have large fiscal implications on the overall civilservice wage bill. Hence, specific teaching hour supplements that are phased in and linked toperformance may be introduced if an efficient management system for this can be developed.

1.18 Teacher training would be provided (see paras. 3.24 and 3.44) in the context of theexisting PKG system (see Annex 5), which would be revised so as to (a) revitalize programactivities, which have tended to become routinized through frequent repetition, and (b) givemore attention to student learning issues, since despite the efforts of previous training projectsteachers have operated as a one-way system without carefully checking what students learn andhow they learn in classroom activities. The revised PKG Model C program would include aconsideration of the special problems affecting schools in remote areas.

1.19 Student Performance Assessment. Recent teacher evaluation study (including EastJava) found that teachers very often behave within a supply-side strategy or a one-wayapproach; they do not seem to be concerned whether their students are learning or not. Thestudent performance assessment system would give teachers a tool to assess their classes andtheir students individually, and would thus help them adjust their own classroom teachingplans, strategies and methods. This would also help school principals evaluate what and howstudents are learning, their teachers' skills and agree with them on adequate remedial trainingcourses. Also, it would provide Kanwils and Kandeps with a general evaluation of studentachievements and specific school needs, while giving the provincial and central administrationessential information on the education system (see paras. 3.26, 3.46).

1.20 Library and Supplementary Books. Fifty-eight percent of East Java JSE schoolsand 79 percent of NTT do not have a school library, and many of the existing school librariesrange from poor to practically non-functional. Indeed, many books available are not beingused, either because they do not interest the young readers, have little relationship withclassroom activities, or even are in a foreign language. In addition, current school libraryfacilities and restrictions do not encourage students' attendance, and the librarians lack theskills and the status to 'bell" the available information to the potential users. In order to helpprovide schools with a more diversified source of information, principals and teacher-librarianswill be given the opportunity to select library (reading, supplementary and reference) booksmost suitable to their students needs, culture and preferences (see paras. 3.27-28, 3.47-48).

1.21 Science and Technology Education. The following problems currently exist: (a)science scores are among the lowest in the five key subject matters of the JSE curriculum; (b)science teachers are those most frequently absent in rural schools; (c) laboratory equipment isnot used by teachers, who instead adopt blackboard writing as a substitute for experiment and


hands-on methodology; (d) the technology component of the mandated 'Science andTechnology Education" curriculum has never been adequately integrated in the programs andtextbooks; and (e) a methodological approach has never been defined for JSE scienceeducation as an introductory phase (see Annex 6 and paras. 3.30, 3.50).

1.22 Management. In addition to access and quality, East Java and NTT face new andexisting management issues as a result of the deconcentration of tasks from the center to theprovinces, a process this project will support. For historical and political reasons, publicadministration in Indonesia has been highly centralized and decision making is tightlycontrolled by central Govemment in Jakarta. The center has traditionally set objectives foreducation expansion and development, with few inputs from the provinces. However, thedifferences of local conditions in each province and district, accentuated by the great distancesof the outer islands from the administrative centre, make it increasingly difficult for centraladministration to devise and implement satisfactory solutions to local problems. Althoughcentral MOEC needs to retain a significant role in providing policy guidelines and promotingregional equity and overall economic development, the Government has decided gradually todevolve authority to the provinces and districts. As a result several functions of the Ministry ofEducation and Culture are being entrusted to provincial (Kanwil) and district (Kandep/Kanim)education offices (see paras 3.32-34, 3.52-54).

1.23 The institutional analysis of JSE's administrative system has indicated that: (i) at thecentral level, there is growing understanding (increasingly translated into operational terms)that the deconcentration of functions does not imply a less significant role for central units, butrather a shift towards a more policy-oriented, monitoring, technically assisting and evaluatingrole; (ii) at the provincial and district levels, Kanwil and Kandep/Kanin offices still lack themanagerial and analytical tools required for planning, policy and financial analysis, projectimplementation and evaluation; and (iii) at the school level, principals need to improve theirability to enhance their teachers' motivation and productivity, and learn how to better link theschools with their catchment communities (see Annex 7). In addition, the management ofinformation in the administrative system requires strong streamlining. Three times a year theadministration collects from the schools large quantities of data which go up the system (fromsub-districts to the central MOEC), but are rarely analyzed and transformed into information tobe used for decision-making and provided as feedback to the schools (see paras. 3.35, 3.55).

1.24 Private Schools. Over the past ten years, private junior secondary school enrollmentshave consistently been above 40 percent (see Annexes 1 and 8). The main reason for theproliferation of private schools is the insufficient supply from the public sector, either because nopublic school is available in the area, or because the existing public schools cannot meet the wholedemand. And since admission into public junior secondary schools is largely determined by theapplicants scholastic aptitude, private schools generally cater to the students with lower academicscores. Private schools are established and operated mainly by (a) local communities which havenot succeeded in their efforts to have a public school established, (b) associations of teachers, and(c) local religious groups.

1.25 Private schools, while costing more to parents than public schools, deliver the program at alower unit cost than public schools, primarily because of lower teacher salaries. Especially, insmall, poor communities, schools established by religious groups or by the community provide

8East Java and NTTJtinior Secondary Education Project

both for students' access to schooling and for job opportunities for local teachers. Because oftheir lower status and opportunities, most schools are of low quality, and examination scoresare routinely below those for public schools. Nevertheless, private J'unior secondary schoolsWill continue to be a relevant partner in the overall expansion and quality-driven effort. Thecost implications of three altemative public/private scenarios over the next 15 years areanalyzed in Annex 1, section E.

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C. EAST JAVA

1.26. Socio-economic Framework. East Java, with 32 million inhabitants, stands today atthe forefront of modem Indonesia, its economy spurred by rising industrialization andmodemizing agriculture, a blend not unlike that which occurred in Korea during the 1960s.Starting from a low level, East Java has been growing steadily in the past decade, above thenational growth rates. Between 1984-1995, per capita GDP grew at about 5.5 percent,compared to the national average of 4.8 percent, placing the province in the 'high growth, lowincome" quadrant. Urbanization has been spreading, with about 32 percent of the populationliving in urban areas in 1995, as compared to only 20 percent a decade earlier. Surabaya, theprovince capital and the second largest city in the country, has become the leading economicpole around which the Eastem half of Indonesia gravitates.

1.27 East Java boasts the second largest industrial base of the country in terms ofemployment and establishments, and contributes about 22 percent of the national value addedby manufacturing. It also produces the highest non-oil GDP among all provinces. It has abalanced distribution of economic activities, a distinguishing factor relative to other provinces.It is the only province which has achieved impressive growth rates and relatively higher percapita incomes without the advantage of substantial natural resources (oil, timber) or specialstimuli like tourist dollars or a massive influx of extemal capital.

1.28 The regional economy experienced a structural shift during the 1970s and 1980s: theshare of agriculture in the economy declined from 50 percent in 1970 to less than 25 percent in1987, and agriculture's share of employment went down from 56 percent in 1987 to 43 percentin 1994. The industrial sector increased from 14 to 25 percent, with the central core regionbecoming a center of manufacturing industry growth. Services also grew from 36 to 50percent. While all sectors grew between 1983 and 1987, the largest growth rate was inmanufacturing (7 percent) and services (6 percent). All these changes are expected to continueas East Java is becoming the focal point of the transition of Indonesia's economy in the nextdecade.

1.29 Given the ongoing structural transformation of its economy, and its expected furtherdevelopment, East Java will require an increasingly educated labor force, among other factors.The labor market in East Java is already recruiting senior secondary school graduates even insemi-skilled assembly jobs in manufacturing and clerical jobs in the service sector, virtuallyclosing the door to the recruitment of primary school graduates for all but the most basic ormenial jobs in the modem sector and in agriculture. The wage premium for senior secondarygraduates is an additional 60 percent over junior secondary graduates, indicating that thebenefits of junior secondary education are in a way linked to the prospects of continuing to thesenior secondary level.

1.30 This overall picture of East Java prosperity, however, contrasts sharply with the highlevels of poverty still characteristic of some areas of the province -- 16 out of 37 districts havemore than 25 percent of their villages targeted by the IDT program, a 1994 Presidentialinitiative providing special assistance to the poorest communities of the country (see Annex14). The illiteracy rate for people 10-year old and above is 23 percent in East Java, as


compared to 16 percent nationwide. East Java urbanization figures (30 percent) are heavilybiased by eight major urban areas, as half of the 37 districts do not exceed a 19 percenturbanization rate. If the poor and near-poor are not equipped today with higher levels ofeducation beyond primary, they will not be able to compete for future jobs and will be a dragon average productivity (including agriculture productivity) in the long run.

1.31 Specific JSE Issues. Junior secondary education both as the expansion of basicschooling for the population and the necessary condition to a senior secondary educationdiploma addresses the two mentioned East Java issues, the formation of a higher-level laborforce in an equitable fashion. Some problems still hamper the achievement of these goals suchas still low (albeit increasing) JSE enrollments and low quality levels of schooling. Theseproblems can be analyzed in the context of poverty, economic asymmetries among provincedistricts, and between rural and urban populations.

1.32 A combination of factors explains the low transition rate from primary to juniorsecondary education: i) high, and increasing, direct costs of education which for the poor andnear-poor (who are the groups currently not enrolled) are prohibitive; ii) high indirect costsfrom the point of view of wages foregone during schooling and time spent by rural children intraveling to far-away schools; iii) unavailability of schools in rural areas; and iv) the inability ofpoor families to finance the costs (since the possibilities of borrowing for education arepractically non-existent).

1.33 The economic heterogeneity of the province translates into uneven enrollment levelsacross the 37 districts. Eight districts have GER under 40 percent, with one -Sampang- as lowas 16 percent (see Annex 14). In contrast, urban areas fare rather well, with 9 districtsboasting GER above 85 percent, and 4 urban districts above 110 percent. The poor in ruralareas live on average much further away from school: children from the bottom income quintilelive at a distance 47 percent greater than children from the top quintile, thus adding an extraburden to the already heavy junior secondary school costs.

1.34 Private schools play an important and growing role in East Java's JSE system,accounting for about 45 percent of its total enrollments. It must be noted that private JSEschools cater to a greater share of the poor population than the public sector, the main reasonbeing that, in the absence of public schools, many private schools operate in the afternoon, thusgiving poor children the opportunity to work in the morning.

1.35 Project Strategy. East Java's diversified and booming economy will increasinglyneed a skilled labor force, and the industrializing urban centers will attract a steady migrationflow from rural and remote districts. Given these conditions, the project would focus moreparticularly on the poor and isolated areas of the province, with the goal of providing greateraccess to JSE through the construction of small (Kecil) schools (3 classrooms; see Annex 9).In sparsely populated and remote areas, and also to cater to children who must work to helpsupport their families (the case of both urban and rural poor) the project would foster theextension of the SMP Terbuka system (see para. 3.20 and Annex 9). Also, the project wouldgive support to 30,000 promising but poor students (2 percent of total enrollment) through theextension of an existing scholarship program (see para 3.21).

Staff Appraisal Report 11

1.36 To increase the market value of the JSE, the project would focus also on increasing thequality of the education in East Java junior secondary schools. It would provide training toabout 18,000 teachers, with a specific focus on teachers with low level qualifications (see para.3.24). To reduce teacher absenteeism in the schools located in remote areas the project wouldsupport the construction of teacher dormitories for 56 schools (see para. 3.19). To help enhancethe classroom performance of teachers, a student assessment system would be progressivelyput in place (see para. 3.26). Lastly, to improve the learning environment, the project wouldsupport the construction of 231 libraries in existing and new schools, as well as the provision oflibrary books and of teaching aids to be used in class (see para. 3.22)

1.37 East Java will need, with 37 districts and a rapidly expanding education system, abetter and more efficient administrative system, and the project would provide for training ofstaff at provincial, district, sub-district and school level on technical, managerial andinformation processing skills (see paras. 3.31-35).

1.38 Projections. The following graph charts the planned increase in JSE enrollmentduring the project lifetime and the demographic evolution of the 13-15 age cohort. It showsthat the growth of enrollment rates sponsored by the proposed project will be significantlyhelped by a decrease in the age cohort (a result of East Java's successful family planning).

Projected 13-15 Population and Enrollments in East Java

2,000,000 _

0 ------- - .Pop. 13-1593- 94- - - nrollment

5 96- 96 9798- 99o- _94 9596 9798 9900 01

D. EAST NUSA TENGGARA

1.39 Socio-economic Framework. NTT presents a picture remarkably different from EastJava in terms of social and economic development. Its 3.3 million inhabitants are unevenlyspread over four main islands (and 38 minor ones) characterized by a semi-arid climate and amostly mountainous topography. Sixteen percent of the land area is cultivated, and only 10percent of it can be irrigated. The growing demographic pressure, combined with the use ofslash and burn agriculture and overgrazing, is resulting in the progressive degradation of land.The province has the lowest per capita regional GDP in the country, and a rate of economicgrowth lower than the national average. Urbanization rate is low (11 percent), andcommunication infrastructure is under-developed. With the exception of Kupang, the capital,

12 East Java and N7T Junior Secondary Education Project

there are only relatively small disparities in the traditional economic profile of the other 12districts.

1.40 Agriculture remains the predominant activity, employing more than 80 percent of thework force, but representing only 36 percent of the regional GDP; manufacturing is negligible.Government is the second most important sector of employment, with 7.5 percent of NTT'slabor force on its payroll (5 percent nationally). In the last five years tourism has emerged as agrowth activity. Out-migration, a key factor in alleviating population pressure, has increasedsharply in the last decade, and in 1990 about 100,000 people left the islands for other provincesof Indonesia (the negative migration balance reached 1.6 percent of total population in 1990).There is also a strong but unreported international migration, and it is estimated that about100,000 people (most of them hailing from Flores) have migrated to Malaysia.

1.41 Poverty is a key concem in NTT, as can be seen in its social indicators: 20 percent ofall villages are listed in the IDT program, 24 percent of the population lives under the povertyline (the national figure is 15 percent), 69 percent of the population has monthly level ofexpenditures below Rp 20,000 (as compared to 45 percent nationally), and lastly the incidenceof moderate and severe protein energy malnutrition is about 16 percent in rural areas. On theother hand, given the economic conditions, the illiteracy rate is low, and at 22 percent comparesquite well with the 55 percent of East Timor, the 31 percent of Irian Jaya, or even the 23percent of East Java.

1.42 Specific JSE Issues. Given NTT's lack of natural resources, struggling agricultureand very weak industrialization, education remains the most important factor to help poorpeople find their way out of poverty. Thus, one of GOI's project goals in NTT is to remove thebarriers of costs and distance that keep the children of poor families out of JSE, so as toprovide them with the opportunity to acquire the skills necessary to be competitive on the labormarket, either locally (in particular in the tourism industry, which lacks skilled workers), inother provinces or abroad. A better education is also required to help improve the choice offarming techniques.

1.43 In keeping with its overall economic situation, junior secondary education in NTT lagsfar behind the national average, although NTT's achievement in that field is better than that ofprovinces with a comparable background, thanks to a long tradition of active missionaryschools. Junior secondary education GER stood at 39 percent in 1993-94, or more than 15points under the national average. There are no wide variations in enrollments betweendistricts: the lowest GER for 1993-94 was 32 percent in the district of Manggarai (Flores), asopposed to 54 percent in Kupang, the capital.

1.44 Costs of JSE are comparatively much heavier to carry for poor households in NTT thanthey are nationally, as direct costs to the household for junior secondary school are four timeshigher than primary school costs (Rp 19,132 for primary and Rp 77,868 for junior secondary).The difference between rural and urban areas is also much starker in NTT than it is nationally,with 59 percent of urban children aged 13-15 enrolled in JSE, against only 15 percent for ruralareas.


1.45 Project Strategy. NTT's main obstacles to the expansion of JSE are the overallpoverty of the population as well as the isolation and difficulty of access that characterize mostof the province. The project would support the provincial effort to increase access to JSEthrough the construction of small (3 to 6 classrooms) schools in the remote areas where thenumber of primary graduates would warrant the provision of junior secondary school facilities(see para. 3.38), and in other areas would promote the extension of the SMP Terbuka system(see para. 3.40 and Annex 9). The project would also provide support to about 5,000promising but poor students (3 percent of total enrollment) through the extension andimprovement of an existing scholarship program (see para. 3.41).

1.46 Given the all-present poverty surrounding NTT schools and the lack of learning stimuliin the families, it is particularly important to enrich the schools with selected instruments tofoster children's learning process. The project would provide for library books and teachingaids, and in 40 cases would also support the construction of library rooms (see paras. 3.47-49).To help teachers improve their skills the project would support training for about 4,000 of them(see para. 3.44-45). Private religious schools have a long tradition in NIT due to the presenceof missionary foundations. The project would allocate quality improvement activities to themcommensurate with their share in JSE enrollments.

1.47 The isolation and the difficulty of communication that characterize most of NTT islandsalso call for a strengthening of education administration, including the capacity to plan theprovincial education system and assess school needs, methods and products (see paras. 3.52-54). The project would thus provide technical and managerial training and equipment(particularly for information processing) to provincial, district, sub-district and school levels.

1.48 Projections. The following graph charts the planned increase in JSE enrollmentduring the project lifetime and the growth of the 13-15 age group. It shows that unlike EastJava (see para. 1.38), cohort sizes in NTT will stabilize only towards the end of the project, andthat some of the growth in enrollments is attributable to demographic gains.

Projected Enrollments in NTT

300,000 e.X . l.=

50,000

O- 6 -t Pop. 13-15

93- 94- 95- 96 -nrollment94 95 99797- 98- 99 0

~96 97 98 99 00 0


2. GOVERNMENT STRATEGY, LESSONS LEARNEDAND BANK INVOLVEMENT

A. GOVERNMENT STRATEGY

2.1 As part of the Repelita VI (1994/99) program, the Govemment set the important goalof extending access to high quality junior secondary education. This objective is integral to thegoal of attaining universal coverage of nine-years of basic education by the end of Repelita VIII(2008/09). To support this ambitious goal, the Govermment has adopted several policymeasures and strategies (see Annex 10): (a) it plans to provide additional resources to basiceducation, starting with an increase of 20 percent in the overall budget of education for the1996/97 fiscal year; (b) it has abolished junior secondary school fees and admissionrequirements for primary school graduates; (c) it is providing free textbooks for all primary andjunior secondary schoolchildren; (d) it is supporting private junior secondary schools withpublic teachers and other inputs to maintain and even increase their significant enrollmentparticipation at this school level; (e) it continues to upgrade teachers skills for both public andprivate schools through in-service programs; (f) it has started the construction or developmentof regular or altemative JSE schools in rural and remote villages; (g) it has phased out alldiploma courses for the pre-service education of secondary school teachers (junior and senior)so all new teachers at that level now need to have a SI (undergraduate) degree; (h) it isupgrading existing junior secondary school teachers to D-EH (three-year post-secondarydiploma) at public expense; and (i) it is extending subsidies (scholarships) to capable but poorstudents to begin or continue junior secondary education.

B. LESSONS LEARNED

2.2 Integration of the following lessons from previous Bank projects would help build onthe exceptional performance of the Bank in the education sector in Indonesia. All the 22previous projects (see Annex 12) have been judged satisfactory by the Operations EvaluationDepartment (OED), and they have set the stage for the more challenging tasks in this sector.OED Document, No. 9752, Indonesian Education and the World Bank: an Assessment ofTwo Decades of Lending, 1991: (a) found that each of the previous projects was successfullyimplemented; (b) concluded that Bank support in education projects was timely and gavevaluable encouragement to the Govemment; and (c) pointed out that as the projects wereachievements and successes, they also pointed to shortcomings in the quality of education andfragmented management --issues being addressed by the present project.

2.3 OED Report. The 1991 report has several conclusions and recommendations that arerelevant for this project:

Issue: Institution building is basic to the long-term goal of increasing the self-sufficiency of the Indonesian education system (p. 58)Project response: Increased emphasis is placed on institution building and self-management at provincial and district levels.


Issue: Projects must be discussed within the framework of policy dialogue (p. 65)Project Response: Regular discussions between MOEC and the Bank on developmentpriorities and the role of the Bank vis-a-vis other donors have been instrumental indetermining agenda for Bank lending.

Issue: Despite explicit goals, projects have not always achieved equitable distributionof project benefits to the poor (p. 68)Project Response: Several project interventions are specifically targeted to the poor:school construction in rural areas, SMP Terbuka and scholarship program.

Issue: Previous projects (mainly national in scope) were often overly complex orunderestimated absorption constraints, resulting in unsatisfactory implementation (p.70)Project Response: The project has been designed with extensive participation fromcommunities, existing schools, district and provincial MOEC staff

Issue: GOI should spend a greater amount of its budget on education, to achieve thenecessary quality and institutional objectives (p. 78)Project Response: Indonesia's education expenditures are 14 percent of totalgovernment budget; The 1996/97 budget shows an increase of 20 percent over lastyear, of which 72 percent is spent on basic education (primary and junior secondary).

Issue: Despite its role in providing educational opportunities, the private system hasreceived limited support from GOI and the Bank (p.79)Project Response: GOI is committed to ensuring that the contribution from the privatesector in junior secondary education is maintained and strengthened. Recent projectshave provided private schools with quality inputs.

2.4 Lessons from Completed and Ongoing Secondary Education Projects. Otherlessons have been drawn or confirmed by the General Operational Review of SecondaryEducation Projects by HDD. Implementation of the 1990 Indonesia Secondary Education andManagement Training Project (Ln. 2472-IND) and the ongoing Second Secondary Educationand Management Project (Ln. 3158-IND) are particularly relevant in this respect.

(a) Overall Project Design. The completed and ongoing secondary educationprojects have demonstrated that the expansion of secondary education shouldbe addressed through a dual strategy of increasing school places and improvingthe quality of education. The proposed project would include both expansionand quality improvement objectives, to ensure continual demand for educationand to improve repetition and drop-out rates.

(b) Flexibility in the Design of Components. Attempts to impose standardsolutions to the variety of conditions in Indonesia have not been successful, andGOI is working to correct this situation. The policy of limiting the size ofgovernment schools to a minimum of nine classrooms has been reviewed, toallow public schools to be established in small communities with lowerdemand, and experimentation has started with JSE alternative models.


(c) Ownership and Participation. Local communities contribute significantly tothe development of education in their areas. Stakeholders and clients are wellplaced to assess project processes, fully measure project outcomes, and to helpdevelop appropriate corrective measures. They know when children arelearning and how investments in schools are being used. Stakeholderinvolvement was emphasized during the preparation process (see Annex 11)and will be promoted under the project by providing assistance and incentivesfor both private and public schools.

C. BANK STRATEGY AND RATIONALE FOR INVOLVEMENT

2.5 This project--one of the first in a series of junior secondary education projects--supports the Bank's 1995 Country Assistance Strategy (CAS) for Indonesia, which waspresented to the Board on March 21, 1995. The CAS endorses Government's role towardsestablishing a regulatory framework and in supporting decentralization and participation. Inaddition, the CAS highlights the importance of continued emphasis on human resourcedevelopment to promote economic growth, competitiveness, and structural transformation, andon a more selective, efficient use of public resources. The design of the proposed project isalso consistent with the Bank's strategy of balanced assistance to the education sector, whichincludes ongoing and proposed assistance for (a) improving the quality of primary education,including possible interventions in early childhood development, (b) expansion and qualityimprovement of junior secondary education, (c) quality improvement of senior secondaryeducation, (d) selective interventions in higher education, and (e) an active policy dialoguedesigned to redefine and re-focus the Government's role in the education sector.

2.6 The Bank's comparative advantage in supporting junior secondary education is basedon its long-standing and close working relationship with MOEC. The Bank has engaged in acomprehensive dialogue with MOEC that reaches far beyond this project itself, since it hashelped: (a) establish a solid conceptual and economic framework for the expansion andqualification of junior secondary education and basic education in Indonesia over the next 20years; (b) identify the comparative advantages for Bank's and other donors' role in the plannedexpansion and qualification process; and (c) strengthen the decentralizing trends toward sub-central levels, province-specific projects, and local ownership. As a result of this dialogue, theprevious highly centralized, uniform approach to project design and implementation has beenabandoned and has been replaced by an approach that will rest on province-based projects.The Govemment has now recognized the need to take into account specific provincialsituations, including economic growth trends and prospects, the existing education needs, labormarket conditions, private sector delivery capacity, levels of poverty, and geographicconditions. The Bank has also been an active partner in the discussions on the prioritiesgovering basic education delivery, on the role of the private sector in secondary education andon the share of Govemment spending that should be allocated to basic education.

2.7 The Bank is a trusted partner in basic education in Indonesia and has substantialexperience working with the Indonesian Govemment in this sector (see Annex 12). Based onthe Bank's worldwide experience, GOI sought the Bank's advice on such issues as lower-cost


altematives for junior secondary education, how to improve quality and how to tailor theproposed increased access programs to local needs. The proposed project represents one in anoverall program of Bank support for expansion and quality improvements in basic education.Currently, the Bank is actively preparing two other secondary education projects and theGovernment has requested that the Bank provide both financial and technical assistance forfuture projects. The junior secondary education development program is supported by otherdonors, including ADB and OECF. This project complements the assistance to basic educationprovided by several ongoing projects

(a) Second Secondary Education and Management Project. This project (Ln.3158-IND), approved in 1990, consisted of provision of quality inputs insecondary schools (teacher training, equipment and books); a review andredesign of the student assessment system; and a redesign of the informationmanagement system. After initial problems, mainly due to the large nationalscope, the project was restructured to operate in five pilot provinces, withsatisfactory results. The implementation experience from this project hasprovided the basis for the design of the current project. In addition, the Bankis now very familiar with the issues and the agencies involved in this subsector.

(b) The Primary and Secondary School Teacher Development Projects.These 1992 and 1996 projects (Ln. 3496-lND and 3979-1ND) address pre-service teacher training and complement the current project in the preparationand quality improvements of teachers. Substantial coordination between pre-service and in-service training is achieved through the concurrentimplementation of these projects. The Bank is also heavily involved inensuring that maximum coordination is achieved between TeacherDevelopment Projects and the in-service training components of the juniorsecondary education projects.

(c) The Primary Education Quality Improvement Project. Approved in 1992,this project (Ln. 3448-IND) provides quality inputs in primary schools in sixprovinces. The issues related to primary schools that impact on transition, toenrollments and quality in, junior secondary schools are being addressed in thisproject on a limited scale. Project impact is now being reviewed, to determinethe further strategies for implementation on a larger scale.

(d) The Book and Reading Development Project. (Ln. 3887-IND). Theproject started implementation in September 1995, aiming to provide freetextbooks on a one-to-one basis to all public and private primary and juniorsecondary education students in all subjects. The project provides one of themost essential quality inputs into basic education on a systematic basis, andcomplements the proposed junior secondary education Projects.

18 East Java and NlT Junior Secondary Education Project

3. THE PROJECT

A. PROJECT OBJECTIVES

3.1 The project would assist the Government of Indonesia in addressing the quality andcoverage of junior secondary education in the provinces of East Java and NTT. The project'sobjectives are to:

(a) expand access to junior secondary education in a cost-effective and equitable way;(b) improve the teaching of junior secondary education; and(c) strengthen the management capacity at all levels of the education system.

B. PROJECT PERFORMANCE INDICATORS

3.2 Project impact will be assessed using the following indicators (see Annex 13):

a) the increase in enrollment in new junior secondary schools and altemative programs as apercentage of total capacity created in these schools and programs;

b) the increase in enrollment in each subdistrict as a percentage of the expected enrollment inthe new capacity created in the subdistrict schools, by grade;

c) the increase in student examination scores, by province, district, subject, and public andprivate schools; and

d) the proportion of the work program implemented as measured by the physical targets andbudget spent annually for project and routine activities in project province.

C. PROJECT COMPONENTS

3.3 The project has been organized into three major components to address the main issuesidentified in the junior secondary education system of East Java and NTT:

* Access to Junior Secondary Education: The project would support the efforts to (a)increase the number of places available at junior secondary level by adding classrooms toexisting schools and building new schools located closer to the potential JSE demand,particularly in poor and remote areas; (b) provide existing and new Open JSE withinstructional material and training for tutors; (c) help promising but poor students getaccess to JSE through the expansion and improvement of the existing scholarship program;and (d) stimulate demand for JSE through a social marketing effort. At negotiations theGovernment gave assurances that it would (i) award scholarships, and (ii) selectlocations for the construction of schools in accordance with criteria acceptable to theBank (para. 7.1(a)).


Education Quality: The project would focus on some key factors of education quality,principally teachers and instructional materials. It would thus (a) provide training to under-qualified teachers, with a specific focus on teachers in isolated areas; (b) help insureteachers' presence in remote areas through the provision of teacher dormitories; (c) supportthe construction of library rooms and the provision of library books; (d) support a study ofbest teaching methods for science education, and (e) help establish a Student PerformanceAssessment to provide teachers and principals with academic feedback. At negotiationsthe Government gave assurances that it would (i) employ contract teachers, and (ii) selectlocations for the construction of teacher dormitories in accordance with criteriaacceptable to the Bank (para. 7. 1(a)).

* Education Management: In order to augment the capacity of the administrative system toprovide greater access to, and improve the quality of, JSE the project would help (a)expand the managerial skills of staff at central, provincial, district, sub-district and schoollevels, (b) improve information management and utilization, and (c) augment theequipment in province and district offices. At negotiations the Government gaveassurances that it would select candidates for management training in accordance withcriteria acceptable to the Bank (para. 7. 1 (a)).

D. PROJECT TARGETING

3.4 Poverty targeting. The project would target remote and rural areas with the lowestjunior secondary GER and the highest rate of IDT villages, and within these areas prioritywould be given to IDT villages (see Annex 14). In that context, a comparatively larger share ofresources (in proportion to population) will be allocated to NT[, as the province significantlylags behind the rest of the country in terms of education achievements. The project would helpbuild 55 percent of the classrooms needed in NTT, and 13 percent in East Java. In bothprovinces the project would also specifically target promising but poor students through theextension and improvement of the existing MOEC Scholarship Program.

3.5 Private education. Beside supporting public education, the project would devote asubstantial amount of resources to improve the quality and management of private education,so as to help reduce the disparity between public and private education and encourage parentsto view private schooling as a worthwhile option. Specifically, private schools would benefitdirectly from: (a) teacher in-service training; (b) provision of teaching equipment and materials;(c) provision of reference and library books; and (d) management training for school principals.In addition, private schools would benefit indirectly from such project activities as improvedKanwil management, monitoring, and evaluation of schools and students. These efforts are inline with Government policy (explicitly stated in Repelita VI) that private schools shouldpreserve and even increase their share of total junior secondary enrollments. The public sectoralready devotes significant amounts of resources to support and improve the quality of privateschools, in particular through the secondment of public sector teachers to private schools,distribution of approved textbooks free of charge, and operational cost subsidies to privateschools at the lower end of financial viability.


E. PROJECT ECONOMIC ANALYSIS

3.6 The economic analysis conducted for the pr ject consists of (i) analysis of educationaldemand and the rationale for public investment in junior secondary education; (ii) fiscalanalysis; (iii) review of alternatives; and (iv) cost-benefit analysis. Details in Annex 1.

3.7 Demand. There are both efficiency and equity grounds for additional publicintervention in junior secondary education in Indonesia today. It is primarily the poor and near-poor (and mostly those in rural areas) who are not enrolling in school and whose participationdeclined in the late 1980s to early 1990s. One of the primary factors explaining the lowdemand is the high direct costs of education. A second factor is indirect (opportunity) costswhich exacerbated the effect of high direct costs. Coupled with stagnant real wages in the1 980s and the effects of cuts in public expenditure on basic education in the mid- I 980s (schoolconstruction came to a virtual halt), these factors contributed to faltering demand. The past twoyears have seen the reversal of these trends as enrollment rates have risen significantly in allprovinces.

3.8 Budget. Since investment in junior secondary education is desirable on both efficiencyand equity grounds, the key questions for the Government are the budgetary implications of theexpansion and how to expand the system. The budgetary implications of the expansion aresizable ($7.6 billion; see Annex 1 and para 1.8), but estimation shows that the policy isattainable if the economy continues to grow at the rate achieved in recent decades, additionalfunds are made available to junior secondary including extemal borrowing, and the privatesector retains its current significant share.

3.9 Review of Alternatives. Analysis of altematives considered the role of the privatesector in the expansion program and the fiscal implications of mainly public expansions versusone which made room for private expansion. The budgetary implications double in the secondscenario ($14.5 billion compared to $7.6 billion). There are additional merits to preserving theprivate sector. First, given the current and projected surplus of teacher candidates, a robustprivate sector is an effective means for helping to clear the market for teachers. Second,madrasah schools (religious schools which currently enroll about 20 percent of juniorsecondary students) offer access to junior secondary in small, poor communities and at a costthat is significantly lower than even MOEC-supervised private schools. These schools alsoenroll a higher proportion of girls than boys, reflecting the preference pattem of some famniliesfor non-secular education. Third, maintaining the share of private schools at the juniorsecondary level establishes the basis for sustaining the even larger share of private schools atthe senior secondary level (54 percent of enrollments in 1993/94).

3.10 Beyond the public/private altematives, the Govemment has experimented withalternative modes (see Annex 1, section im; and Annex 6) of delivering junior secondaryeducation (in respect of the regular SMP model). These include: SMP Kecil and SMPTerbuka. While not entirely substitutes for each other (or to the regular SMPs), andexperimentation to improve their quality is still ongoing, preliminary unit cost comparisonsindicate that gains can be achieved by utilizing these less costly altemative models of juniorsecondary education in rural and remote areas.


3.11 Economic Rate of Return. The economic rate of return for the project investment isestimated by province and component (increasing access and enhancing quality, but excludingthe management component -see para. 3.3). The estimates are obtained by solving for theintemal rate of return that equates a stream of benefits and costs resulting from the investmentover a thirty year horizon. The benefits of the projects are derived from the increased numbersof students enrolled in junior secondary in any given year, but also include the additional streamof students expected to proceed to senior secondary and tertiary education. A monetary valueof the benefits of each stream of beneficiaries is estimated using the difference in wagesbetween one level of education and the next. Benefits will also accrue from investments inenhancing quality of junior secondary. A benchmark assumption of a 15 percent additionalwage premium earned by a higher quality graduate is made. High returns were found for bothquality and access components, with returns on quality enhancements generally higher than forexpansion of access, particularly in NTT, as noted in Table 3.2 below.

Table 3.2Rates of Return to Project Investments

by Component and ProvinceComronent East Java NTTAccess 16.3 14.0Quality 21.8 22.0Total 18.3 16.0

3.12 Simulations were run varying some of the underlying assumptions. In all, the mainvariables to which the system appears to be most sensitive are those affecting quality. This isnot surprising given the large numbers of beneficiaries which are impacted by this investment.Sensitivity analysis reveals, for example, that the rate of return for quality inputs declines from16 to 12 percent in East Java if only a 10 percent increase (instead of 15 percent) in additionalwage premium for higher quality graduates is assumed; the rate of return declines from 22 to20.6 percent if incremental recurrent costs for quality improvements in NTT increases fromUS$8 per student to US$10.

3.13 Impact on Poverty. Those not enrolled in junior secondary today are predominantlyfrom the lowest four income deciles. The project will reach these poor and near-poor throughits poverty-targeted sub-components. Approximately 35,350 scholarships will be awarded topoor (and capable) students. Approximately 12,000 Kecil and 20,000 Terbuka student placeswill be created, implying 8,000 Kecil and Terbuka graduates per year for the next 10 years. Inall, the project will contribute to offset the geographical and financial obstacles barring poorerchildren from JSE schools, thus reducing social inequality in education access.

3.14 Impact on Women. Female enrollment rates in JSE in East Java and NTT are at parwith male enrollment rates (see box on p. 8). This means that approximately half of those whowill benefit from the proposed project's improvement in JSE access and quality would beyoung women (approximately 300,000). In a longer term perspective, opportunities forwomen to have access to higher levels of education and better work opportunities wouldimprove (see para. 1.6). In remote areas, moving to the nearest (but still distant) JSE schooland living in friends' houses is a constraint particularly affecting girls, who thus will benefit themost from the JSE schools to be built in their neighborhood.


F. PROJECT DESCRIPTION

3.15 To meet the three defined objectives (para. 3.1), and specify the components identifiedabove (para. 3.3), the following activities would be implemented in the public and privatejunior secondary school subsystems of East Java and NTT.

East Java

3.16 The project would focus on expanding and improving the human resources required forthe continuing development of East Java's dynamic economy (see paras. 1.26-1.30). Theestimated project baseline costs of US$83.6 million for East Java would complement theefforts of the Government and other donors in increasing junior secondary educationenrollments (access) and improving its quality, with special emphasis on rural and remoteareas where poverty and lack of schools have hampered the drive for a more balanceddevelopment of the provincial economy. To this end, the project would upgrade the skillsneeded for a more efficient school and provincial system management. The five-year projectwould create 56,000 additional student places in remote villages of East Java where JSEenrollments rates have been sluggish (less than 50 percent rural average) or schools too distant(more than a three-hour walk from home). This would generate approximately 120,000additional JSE graduates in 15 years.

Access

3.17 Increasing Access to Junior Secondary Education (US$53.3 million equivalent overfive years, excluding contingencies). This component would be targeted to remote areas. Itwould include some new school construction, support for Open (Terbuka) junior secondaryeducation, a scholarship system, and a social marketing scheme to foster junior secondaryeducation support among stakeholders, particularly parents.

3.18 New Schools Construction (US$40 million equivalent). Using an average ratio of 40students per classroom, the province's needs in terms of school and classroom constructionwere computed on the basis of a projected enrollment rate of 75 percent in year 2000-01. Theproposed project would support the construction of 169 schools in the next five years (124 typeD or 6-classroom schools and 45 type E or 3-classroom schools) representing 13 percent oftotal provincial needs. This would increase school capacity by about 35,000 places. IDTvillages (as a strong correlate with poverty and community activities) would be a preferredplace for school construction (see Annex 15). Land for school construction will be acquired bythe Government as part of total project costs. The balance of classroom construction needswould be covered by the national development budget (APBN), an OECF project, and privateresources.

3.19 The project would support the construction of 56 teacher dormitories. Thesedormitories would be built to accommodate teachers of schools in remote areas (see Annex15).


3.20 Support for Open (Terbuka) JSE (US$ 1.6 million equivalent). By the year 2001210 Open (Terbuka) JSE are planned to be operating in East Java with GOI resources andother donors' help. The project would support the distribution of a set of learning material andreference books and book cases to the local Learning Centers (TKP), where students meet fouraftemoons a week to study. It would also provide for 10-day training sessions for 3,000 of thelocal tutors who supervise the Learning Groups. The training program for tutors will bedesigned and discussed with the Bank (see Annex 9).

3.21 Scholarship Program (US$11.6 million equivalent). The project would support anexpansion of the existing Kanwil-managed scholarship scheme, after evaluation of its impactand review of its implementation mechanisms. The scholarship would provide 25,000 Rp. permonth (for 12 months and normally for three years) to each selected student. Eligibility criteria(see Annex 16) would focus principally on the family's income level and the student's schoolperformance. The scholarship would be offered to 30,000 (2 percent of total enrollment)students in East Java

3.22 Social Marketing. (US$0.1 million equivalent). Social marketing would be used todevelop parents' awareness of the benefits to be derived from JSE, and to build up thecommitment of key stakeholders (teachers, local administrative staff, community or religiousleaders) to the goals of the project. The activities to be carried out under the social marketingprogram would include the preparation, design, printing and diffusion of posters and pamphlets(target: communities, schools, Kecamatan, Kandeps); the preparation, production and diffusionof radio messages (target: parents and teachers); the production and viewing of video tapes(target: Ministry and Kanwil staff, Governors, Bupati, politicians, journalists); the organizationof two province-wide seminars (target: Kandeps and Kecamatan staff); and the organization ofa national contest for the best song promoting education. The component will be prepared andmanaged under CPCU leadership (with funding under the Central Indonesia Junior SecondaryEducation Project, including an international consultant) and will be implemented under PIUsresponsibility (with project funding). A national consultant will be hired for five months (bothfor East Java and NTT, see para 3.22 and 3.42) for the initial analysis, design of components,and test of proposals. The production and dissemination phases will be carried out under PPIUresponsibility. Objectives, activities responsibilities and calendar have been discussed withGOI and will be part of the Project Implementation Handbook (see para. 5.8).

Quality.

3.23 Improving the Quality of Junior Secondary Education (US$24.4 millionequivalent over five years, excluding contingencies). It is expected that a higher quality levelof JSE will better equip JSE graduates to meet the needs of East Java's changing labor market,and thus increase household demand for JSE. This component would include teacher training,school libraries and teaching aids, provision of science kits and the development of a study onalternatives for teaching JSE science, and the development of a student performanceassessment system.

3.24 In-service Teacher Training (US$4.2 million equivalent). About 50 percent ofpublic school teachers in East Java have qualification under the required minimum level of D-3


(three-year post-secondary diploma). The project would train these teachers, focusing on theuse of appropriate teaching methods (see Annex 5). The project would train 9,360 teachersfrom remote areas schools through the PKG Model C, and would provide support for 37,330teachers undergoing training with the MGMP system (in both cases including private schools).This component would be expected to improve teachers' classroom performance, and thus tohave an impact on students' learning and national examination scores (see paras. 1.14-1.18 andAnnex 5).

3.25 On a pilot basis, the project would support the hiring for rural schools of up to 100"contract teachers" (with an emphasis on female teachers) in core academic areas such asBahasa Indonesia, Mathematics, Science Education and English, where there is a constantdeficit. Criteria for the new contract modality was discussed with GOI authorities (see Annex17). Their contracts would be tied to a specific school and would be discontinued if the teacherleaves that school or does not meet his/her teaching requirements (see para. 1.14).

3.26 Student Performance Assessment (US$0.3 million equivalent). To design and helpimplement this Student Performance Assessment System (see para. 1.19) the project wouldsupport an initial thorough assessment of the needs and resource requirements forimplementing the system, especially those related to classroom assessment. A second phasewould include training of teachers on how to design good tests and use their results as aquality-fostering instrument; and setting up the system for student performance assessmentanalysis at Kanwil level, and establishing the feedback system designed to send the informationback to the classrooms. This strategy will benefit from technical expertise (doctors andmasters in education at central and provincial level) and the respective hardware and softwareprovided by the Second Secondary Education and Management Project. The project wouldprovide equipment, domestic consultant services and training.

3.27 School Libraries and Teaching Aids (US$19.9 million equivalent). Fifty-eightpercent of schools in East Java lack a proper library, and to correct this deficiency theproposed project would support the construction of 231 library rooms. To offset the currentpaucity of reading material in existing libraries, the project would provide to each library a setof reading and supplementary books (at the rate of three books per student), and 50 referencebooks (including dictionaries) to be used by teachers and students (see para. 1.20).

3.28 To encourage ownership, library attendance and reading promotion, principals willselect reading, supplementary and reference books more suitable to their cultural environmentand students' preferences. Based on the book lists prepared by MOEC, the school principals inconsultation with teachers, students and the teacher-librarian would make the final bookselection and submit their requests to the PPIU, which would, in turn, consolidate the requestsand place the orders. The principals may select books not included in the MOEC book list,provided that they then be approved by MOEC. Reading books would initiate or supportreading habits; supplementary books would expand curricular and textbook contents; andreference books such as encyclopedias and dictionaries would serve as consultation andresearch instruments.

3.29 The project would also provide teaching aids such as mathematical games, maps,globes, videos, and overhead projectors for the additional schools to be built under the projects.


One hundred and sixty-nine packages would be provided to the new schools, 350 to existingschools and 50 to private schools. The use of didactic materials and equipment is expected tofoster: (a) more active leaming in classroom and beyond; (b) more cooperative classroomwork; and (c) more productive use of teachers classroom time. School principals and teacherswould have a word in selecting the didactic materials best fitting their students' needs andinterests.

3.30 Science and Technology Education. The project would: (a) provide simple sciencekits to the new schools' science teachers; and (b) in order to identify the best education strategyto teach JSE science and technology, the project would support a study of different teachingapproaches in a sample of 60 representative (urban, rural, private, public) schools (plus 60control-group school). The study, coordinated by the CPCU, would be conducted for twoyears in East Java (and NTT, see para. 3.51) with the help of qualified specialists on scienceeducation and experienced researchers. The hands-on approach fostered by the 'hew science"movement would be emphasized. The results of this study would be used by MOEC to revisethe teaching of science education at JSE level and the design of the corresponding textbooks(See Annex 6 for the Terms of Reference).

Management.

3.31 Strengthening Education Management (US$4.0 million equivalent over five years,excluding contingencies). This component would help the provincial, district, sub-district andschool administrations build implementation and managerial capacity through professionaltraining, implementation of an information system, and provision of office equipment.

3.32 Management Training (US$2.7 million equivalent). GOI is de-concentrating theeducation management by giving Kanwils and Kandep/Kanin increased responsibilities overregional and local matters and in project implementation. The project would providemanagerial and technical training to administrative staff at central, provincial, district, sub-district and school levels. Training would cover about 50 staff from the Kanwil, and 230 stafffrom the 37 Kandeps, or an average of 6 by Kandep. At Kanwil and Kandep level theemphasis would be on planming (including micro-planning), policy analysis, monitoring andevaluation and education data analysis and dissemination. At sub-district level training wouldfocus on education data management. At school level training would help principals of allpublic, private and religious junior secondary schools enrich their skills in supporting teachersand students, developing community participation and managing school facilities (Annex 7).

3.33 The development of managerial skills will be further supported by the publication of aset of approximately ten booklets to be used as education management handbooks by teachers,managers and supervisors on matters such as strategies of teaching-learning interaction inclassroom, the effective use of school library, test design and uses, school environment, andcommunity involvement. For distribution to project schools, Kecamatans, Kandeps, Kanwils,Dikmenum and the other higher instances of the administration, a total of 2,500 sets will bedistributed in East Java (see para. 1.22).

3.34 The expected changes (in skills, processes, efficiency, general behavior and clientorientation) resulting from this professional training will be assessed with technical audits and


user satisfaction surveys (see Annex 7) covering the main stakeholders (from the parentassociation up to the higher level of the administrative system).

3.35 Information Management and Utilization (US$1.2 million equivalent for EastJava). The capacity of provincial and district education admninistration to manage and efficientlyuse information must be enhanced in light of the intended deconcentration of projectimplementation (see para. 1.23). Three information functions would be modemized by theproject: (a) forecasting, planning and monitoring by Kanwil and Kandeps; (b) data processing(MIS) by Dikmenum and Kanwil; and (c) school education data management by Kandeps.The project would provide technical assistance for the development of these functions,analytical and skill training for administrative staff, software and equipment.

NTT (East Nusa Tenggara)

3.36 The purpose of the project in developing junior secondary education in NTT is to helpalleviate poverty-related problems in the province, support incipient modernization efforts inthe economy, and strengthen cooperation with private education. In proportional terms, NTThas been given a larger (than East Java) share (an estimated baseline cost of US$40.9 million)of project resources to help the Government and other donors compensate for NTT lower ratesof junior secondary education enrollments and widespread rural poverty. Under the project,access to junior secondary education would be increased, its quality supported andmanagement capacity upgraded at schools and in the whole provincial system. In five years,the project would open access to 39,000 new students in rural and remote areas of NTT whereenrollments rates are low or JSE unavailable. As a result of the project, there would be102,000 additional JSE graduates in 15 years.

Access.

3.37 Increasing Access to Junior Secondary Education (US$3 1.1 million equivalent overfive years, excluding contingencies). This component would be targeted to remote areas. Itwould include some new school construction and extension to increase current capacity,learning material for Open JSE, a scholarship system, and a social marketing scheme to fosterjunior secondary education support among stakeholders, particularly parents.

3.38 Classrooms and New Schools Construction (US$28.1 million equivalent). Using anaverage ratio of 40 students per classroom, the province's needs in terms of school andclassroom construction were computed on the basis of a projected enrollment rate of 60 percentin year 2000-01. The project would support the construction of 763 new classrooms (52 typeD or six-classroom schools, 56 type E or three-classroom schools and 283 additionalclassrooms) representing 55 percent of total province needs. This construction componentwould increase school capacity by about 30,520. IDT villages (as a strong correlate withpoverty and community activities) would be a preferred place for school construction (seeAnnex 15). Land for school construction will be acquired by the Govemment as part of totalproject costs. The balance of classroom construction needs would be covered by the nationaldevelopment budget (APBN), an OECF project, and private resources.


3.39 The project would also support the construction of 56 teacher dormitories to be builtalongside every new type E school planned for remote areas (see Annex 15).

3.40 Support for Open JSE Terbuka (US$0.8 million equivalent). By the year 2001 81Open JSE are planned to be operating in NTT with GOI resources and other donors' help. Theproject would support the distribution of a set of learning material and reference books andbook cases to the local Learning Centers (TKP). It would also provide for 10-day trainingsessions for 1,050 tutors who supervise the Learning Centers (see Annex 9).

3.41 Scholarship Program (US$2.1 million equivalent). The project would support anexpansion of the existing Kanwil-managed scholarship scheme, after evaluation of its impactand review of its implementation mechanisms. The scholarship would provide 25,000 Rp. permonth (for 12 months and normally for three years) to each selected student. Eligibility criteria(see Annex 16) would focus principally on the family's income level and the student's schoolperformance. It was proposed that the scholarship be offered to 5,350 students or 3 percent oftotal JSE enrollment in NTT.

3.42 Social Marketing (US$50,000 equivalent). Social marketing would be used todevelop parents' awareness of the benefits to be derived from JSE, and to build up thecommitment of key stakeholders (teachers, local administrative staff, community or religiousleaders) to the goals of the project. The activities to be carried out under the social marketingprogram would include the preparation, design, printing and diffusion of posters and pamphlets(target: communities, schools, Kecamatan, Kandeps); the preparation, production and diffusionof radio messages (target: parents and teachers); the production and viewing of video tapes(target: Ministry and Kanwil staff, Govemors, Bupati, politicians, joumalists); the organizationof two province-wide seminars (target: Kandeps and Kecamatan staff); and the organization ofa national contest for the best song promoting education. The component will be prepared andmanaged under CPCU leadership (with funding under the Central Indonesia Junior SecondaryEducation Project, including an intemational consultant) and will be implemented under PPIUsresponsibility (with project funding). A national consultant will be hired for five months (bothfor East Java and NTT, see para 3.22 and 3.42) for the initial analysis, design of components,and test of proposals. The production and dissemination phases will be carried out under PPIUresponsibility. Objectives, activities responsibilities and calendar have been discussed withGOI and will be part of the Project Implementation Handbook (see para. 5.8).

Quality.

3.43 Improving the Quality of Junior Secondary Educafion (US$6.8 million equivalentover five years, excluding contingencies). It is expected that a higher quality level of JSE willbetter equip JSE graduates to face poverty-related constraints and meet the incipient needs ofNTT's economy, and thus increase household demand for JSE. This project component wouldinclude teacher training, school libraries and teaching aids, provision of science kits and thedevelopment of a study on alternatives for teaching JSE science, and the development of astudent performance assessment system.

3.44 In-service Teacher Training (US$1.8 million equivalent). About 80 percent ofteachers in NTT have qualification under the required minimum level of D-3 (three-year post-


secondary diploma). The project would train these teachers, focusing on the use of appropriateteaching methods (see Annex 5). The project would traim 2,990 teachers from remote areaschools through the PKG Model C, and would provide support for 4,490 teachers undergoingtraining with the MGMP system. This component would be expected to improve teachers'classroom performance, and thus to have an impact on students' learning and nationalexamination scores (see paras. 1.14-1.18).

3.45 On a pilot basis, the project will support the hiring of up to 50 "contract teachers" forrural schools in academic areas such as Bahasa Indonesia, Mathematics, Science Educationand English, where teachers are often lacking. Criteria for the new contract modality werediscussed with GOI authorities (see Annex 17). Their contracts would be tied to a specificschool and would be discontinued if the teacher leaves that school or does not meet contractualrequirements (see para 1.14).

3.46 Student Performance Assessment. (US$ 0.1 million equivalent). To design and helpimplement this Student Performance Assessment System (see para. 1.19) the project wouldsupport an initial thorough assessment of the needs and resource requirements forimplementing the system, especially those related to classroom assessment. A second phasewould include training of teachers on how to design good tests and use their results as aquality-fostering instrument; and setting up the system for student performance assessmentanalysis at Kanwil level, and establishing the feedback system designed to send the informationback to the classrooms. This strategy will benefit from technical expertise (doctors andmasters in education at central and provincial level) and the respective hardware and softwareprovided by the Second Secondary Education and Management Project. The project wouldprovide equipment, domestc consultant services and training.

3.47 School Libraries and Teaching Aids (US$4.9 million equivalent). Seventy ninepercent of NTT schools lack a proper library, and to correct this deficiency the proposedproject would support the construction of 40 library rooms. To offset the current paucity ofreading material in existing libraries, the project would provide to each library a set of readingand supplementary books (at the rate of three books per student), 50 reference books (includingdictionaries) to be used by teachers and students (see para 1.20).

3.48 To encourage ownership, library attendance and reading promotion, principals willselect reading, supplementary and reference books more suitable to their cultural environmentand students' preferences. Based on the book lists proposed by MOEC, the school principalsin consultation with teachers, students and the teacher-librarian would make the final bookselection and submit their requests to the PPIU, which would, in turn, consolidate the requestsand place the orders. The principal may select books not included in the MOEC booklist,provided that they then get MOEC approval. Reading books would initiate or support readinghabits; supplementary books would expand curricular and textbook contents; and referencebooks such as encyclopedias and dictionaries would serve as consultation and researchinstruments.

3.49 The project would also provide teaching aids such as mathematical games, maps,globes, videos, and overhead projectors for the additional schools to be built under the projects.One hundred and eight packages would be provided to the new schools, 55 to existing public


schools, and 16 to private schools. The use of didactic materials and equipment is expected tofoster: (a) more active learning in classroom and beyond; (b) more cooperative classroomwork; and (c) more productive use of teachers classroom time. School principals and teacherswould have a word in selecting the didactic materials best fitting their students' needs andinterests.

3.50 Science and Technology Education. The project would: (a) provide simple sciencekits to the new schools; and (b) support a study of different teaching approaches in a sample of20 representative (urban, rural, private, public) schools (plus 20 control-group school). Thestudy, coordinated by the CPCU, will be conducted for two years in NTT (and East Java, seepara. 3.29) with the help of qualified specialists on science education and experiencedresearchers (see para. 1.21). The hands-on approach fostered by the 'hew science" movementwould be emphasized. The results of this study would be used by MOEC to revise the teachingof science education at JSE level and the design of the corresponding textbooks (See Annex 6for the Terms of Reference).

Management.

3.51 Strengthening Education Management (US$1.5 million equivalent over five years,excluding contingencies). This component would help the provincial, district, sub-district andschool administrations build implementation and managerial capacity through the design ofinformation systems, professional training, and provision of office equipment.

3.52 Management Training (US$1.0 million equivalent). GOI is de-concentrating theeducation management by giving Kanwils and Kandep increased responsibilities over regionaland local matters and in project implementation. The project would provide managerial andtechnical training to administrative staff at provincial, district, sub-district and school levels.Training would cover about 40 staff from Kanwil, and 74 staff from the 12 Kandeps. AtKanwil and Kandep level the emphasis would be on planning (including micro-planning),financial analysis, and analytical capacity development for evaluation and policy purposes. Atsub-district level training would focus on education data management. At school level trainingwould help principal of all public, private and religious junior secondary schools enrich theirskills in supporting teachers and students, developing community participation and managingschool facilities (see Annex 7).

3.53 The development of managerial skills will be further supported by the publication of aset of approximately ten booklets to be used as education management handbooks by teachers,managers and supervisors on matters such as strategies of teaching-learning interaction inclassroom, the effective use of school library, test design and uses, school environment,community involvement. For distribution to schools, Kandeps, Kanwils, Dikmenum and theother higher instances of the administration, a total of 1,000 sets will be published.

3.54 The expected changes (in skills, processes, efficiency, general behavior and clientorientation) resulting from this professional training will be assessed with technical audits anduser satisfaction surveys covering the main stakeholders (from the parent association up to thehigher level of the administrative system).

30 East Java and N7TT Junior Secondary Education Project

3.55 Information Management and Utilization (US$0.5 million equivalent). The capacityof provincial and district education administration to manage and efficiently use informationmust be enhanced in light of the intended deconcentration of project implementation (see para.1.23). Three information functions would be modemized by the project: (a) forecasting,planning and monitoring by Kanwils and Kandeps; (b) data processing (MIS) by Dikmenumand Kanwils; and (c) school education data management by Kandeps. The project wouldprovide technical assistance for the development of these functions, analytical and skill trainingfor administrative staff, software and equipment.


4. PROJECT COSTS, FINANCING, PROCUREMENT AND DISBURSEMENTS

A. COST ESTIMATES

4.1 Summary of Costs. The total cost of the project is estimated at US$146.4 millionequivalent (Rp 340.9 billion), including contingencies and identifiable taxes and duties. Tables4. 1a, 4. 1b, 4.2a and 4.2b summarize the estimated costs by project component, category ofexpenditure and by implementing agency, respectively. Detailed project costs are given inAnnex 18.

Table 4.1a: Summary of Project Costs by Component and Province (in US$ million)

East Java NTT CentralComponent Province Province MOEC Total

: . ... ..----.- . .. . .. . .. . .. ..Regular SchoolsAlternative Schools 40.0 28.1 0.0 68.1Scholarship Program 1.6 0.8 0.0 2.4Social Marketing 11.6 2.1 0.0 13.7

Subtotal 0.1 0.1 0.0 0.253.3 31.1 0.0 84.4

-Twp~~~~~. I .-: - -. : :-.---.-.:.:In-service Teacher Training 4.2 1.8 0 .0 6.0Tools for Effective Teaching 19.9 4.9 0.4 25.2Student Performance Assessment 0.3 0.1 0.0 0.4

Subtotal 24.4 6.8 0.4 31.6

Stri $tXh igw:uc.ati.n.Ma n . ............ ...........Managerial Capacity 2.8 1.0 0.6 4.4Information Management 1.2 0.5 0.0 1.7

Subtotal 4.0 1.5 0.6 6.1

SupNNW~r P Mana t :- :.-.1. .. .S::: ...

Total baseline costs /a 83.6 40.9 1.0 125.5

Physical Contingencies 0.0 0.0 0.0 0.0Price Contingencies 14.2 6.6 0.1 20.9

Total Project Costs 97.8 47.5 1.1 146.4

%of Total 67 32 1 100

/a Include identifiable duties and taxes of US$7.3 million equivalent.


Table 4.1b: Summary of Project Costs by Component

Rp billion USS % % Totalmillion

Foreign BaselineComponent Local Foreign Total Local Foreign Total Exchange Costs

Regular Schools 107.4 50.9 158.3 46.2 21.9 68.1 32Alternative Schools 4.4 1.1 5.5 1.9 0.5 2.4 20Scholarship Program 31.8 0.0 31.8 13.6 0.0 13.6 0Social Marketing 0.3 0.1 0.4 0.2 0.0 0.2 15

Subtotal 143.9 52.1 196.0 61.9 22.4 84.3 27 67

htp~~~nQsaahty ~~~~.. ................ ........

In-service Teacher Training 12.0 2.1 14.1 5.1 0.9 6.0 15Tools for Effective Teaching 46.2 12.5 58.7 19.8 5.4 25.2 21Student Performance Assessment 0.7 0.3 1.0 0.3 0.1 0.4 27

Subtotal 58.9 14.9 73.8 25.2 6.4 31.6 20 25

Msanagenial Capacity 7.8 2.5 10.3 3.4 1.0 4.4 2Information.Management 2.1 2.0 4.1 0.9 0.9 1.8 50

Subtotal 9 9 4.5 14.4 4.3 1.9 6.2 31 5

Total baseline costs /a 2J.2 222 292J 1 24 3 31 2 125 5 25~ 1QQ

Physical Contingencies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Price Contingencies 44.8p4.0 .8 4.0 4.8 19.2 1.7 20.9 8 17

Total Project Costs 2/a 2 2202 MI 1213 32.2 146.4 22 112

/a Include identifiable duties and taxes of US$7.3 million equivalent.


i

Table 4.2a: Summary of Project Costs by Category of Expenditure and by Province (US$ million)

East Java NTT CentralProvince Province MOEC Total

Category of Expenditure

Land acquisition 2.8 1.7 0.0 4.5

Civil works 35.4 22.8 0.0 58.2

Equipment and furniture 7.0 4.1 0.0 11.1

Educational materials /a 14.2 3.8 0.3 18.3

Training /b 8.3 3.4 0.0 11.7

Technical AssistanceDomestic consultants 1.4 1.0 0.2 2.6International consultants 0.0 0.0 0.5 0.5

Contract teachers 0.5 0.2 0.0 0.7

Scholarships 11.6 2.1 0.0 13.7

Operational costs /c 0.8 0.7 0.0 1.5

Recurrent Costs 1.6 1.1 0.0 2.7

Total Baseline Costs N1L2 LQ 1=2.

Physical contingencies 0.0 0.0 0.0 0.0Price contingencies 14.2 6.6 0.1 20.9

Total Project Costs /d 223 415 11 14.A

% of total 67 S 1 100

/a Include teaching aids, science kits, library /reference and reading books, education handbooks/manualsand promotional media materials./b Include local training, seminars and workshops./c Include expenditures for travel, per diem, allowances and consumable materials necessary for projectimplementation./d Include identifiable duties and taxes of US$7.3 million equivalent.


Table 4.2b: Summary of Project Costs by Category of Expenditure

Rp USS % % Totalbillion million

ForeignBaseline

Category of Expenditure Local Foreign Total Local Foreign Total Exchange Costs

~~~~~~~~~~~~~~~~~~~~~~~~~.., . .......... ,.. .., ., ., ...,..

Land acquisition 10.1 0.0 10.1 4.5 0.0 4.5 0 4

Civil works 95.0 40.7 135.7 40.8 17.5 58.3 30 46

Equipmentandfurniture 7.8 18.1 25.9 3.3 7.8 11.1 70 9

Educational materials/a 36.1 6.4 42.5 15.6 2.7 18.3 15 15

Training /b 23.2 4.1 27.3 9.9 1.8 11.7 15 9

Technical AssistanceDomestic consultants 5.2 0.9 6.1 2.2 0.4 2.6 15International consultants 0.2 1.0 1.2 0.1 0.4 0.5 80

Subtotal 5.4 1.9 7.3 2.3 0.8 3.1 26 2

Contract teachers 1.7 0.0 1.7 0.7 0.0 0.7 0 1

Scholarships 31.8 0.0 31.8 13.6 0.0 13.6 0 11

Operating Costs /c 2.9 0.5 3.4 1.3 0.2 1.5 15 1

Total Investment Costs 214.0 71.7 285.7 92.0 30.8 122.8 25 98

. ... .. . ... ... .. .... .. ..... .,., ....... ... , ,.,., , ,.,, ,,., , ,z., ,. {, .. . . .. . . . .. .......... . .. .. . . .. . .. . ........

, ,, ............................ ~~.... ,..,, .,,,,,, .... X.. .. . .. . ,, . .. :, . .

Facility maintenance 5.4 1.0 6.4 2.3 0.4 2.7 15 2

Total Recurrent Costs 5.4 1.0 6.4 2.3 0.4 2.7 15 2

Total Baseline Costs Z21. 1222 222.1 2L AL. 12= 21 =

Physical contingencies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Price contingencies 44.8 4.0 48.8 19.2 1.7 20.9 8 17

Total Project Costs /d 2 iZfi 3409 , JL2.2 146. 22 11

/a Include teaching aids, science kits, library reference and reading books, education management handbooks/manualsand promotional media materials./b Include local training, seminars and workshops./c Include expenditures for travel, per diem, allowances and consumable materials necessary for projectimplementation./d Include identifiable duties and taxes of US$7.3 million equivalent


4.2 Bases of Cost Estimates. Baseline costs are estimated at April 1996 prices. Costs ofconstruction of school facilities are based on the GOI standard unit costs 2 per square meterfor such facilities and on review of costs of comparable facilities under other projects.Equipment costs have been estimated on the basis of existing equipment lists and specificationsfor new classrooms. Costs of educational materials are based on prices currently being paid forsimilar items under ongoing education projects. Costs of domestic and intemationalconsultants are in line with recent education and training projects for appropriately qualifiedexperts. Costs of in-country training (in-service teacher training, management training,seminars and workshops) are derived from experiences under the ongoing secondary educationand management project and vary widely depending on the type of training being given and itsduration and location, and they are in line with the govemment guidelines. Scholarship grantsare about US$130 per scholarship-year. Operational costs are based on standard governmentallowances for honoraria, travel, per diem and consumable materials.

4.3 Contingency Allowances. The project consists of a large number of items of smallmonetary value. As the exact number of these items is not vital to the success of the project, nophysical contingencies have been included. A contingency allowance of US$20.9 millionequivalent represents 17 percent of the baseline costs for estimated price increases. Pricecontingencies have been calculated at 8.7 percent per year for local costs and at 2.4 percent forforeign costs.

4.4 Foreign Exchange Costs. Foreign exchange costs are estimated at US$32.9 million,representing about 22 percent of total project costs, and are based on a detailed analysis ofexpenditures under similar projects in Indonesia. The foreign exchange percentages for themajor expenditure categories are estimated as follows: (a) civil works and furniture - 30percent; (b) equipment - 70 percent; (c) international consultants - 80 percent; (d) in-countrytraining, domestic consultants, educational materials and operational costs - 15 percent; and (e)scholarships and contract teachers - 0 percent.

4.5 Taxes and Duties. Taxes and duties are estimated at Rp 16.9 billion (US$7.3 millionequivalent) based on the current 10 percent value added tax on all contracts for civil works,equipment and other goods and tax exemption of educational books. It would be financed fullyby the Government of Indonesia.

4.6 Recurrent Costs. Under the proposed project additional recurrent costs would begenerated by the recruitment of additional teachers, maintenance of new school facilities andrunning of the new schools. The annual additional recurrent costs generated by these items areestimated at Rp 7.0 billion and Rp 5.6 billion, at January 1996 prices, for East Java and NTr,respectively, after the project is completed. These represent 1.0% and 4.7% of the educationbudgets of East Java and NTT, respectively. Thus, the long-term recurrent cost implicationsof the project in East Java are small and manageable, while those for NTT are much higher.Given the much lower level of JS education enrollments in NTT compared with East Java, ahigher level of resources (relative to current regional budgetary pattems) would need to bedirected to NTT to sustain the investment.

2 GOI issues and updates annually the standard construction unit costs per square meter for every district.


B. FINANCING

4.7 The total project cost of US$146.4 million equivalent would be financed by a proposedBank loan of US$99.0 million equivalent, covering 71 percent of total project costs excludingtaxes (99 percent of foreign and 59 percent of local expenditures). The Government wouldfinance the remaining costs of US$47.4 rmillion equivalent including taxes (32 percent of totalproject costs including taxes), as detailed in Table 4.3 below. The provincial budget allocationwould be done through annual provincial-level development budget.

Table 4.3 Financing Plan (US$ million)

Land acquisition 4.5 0 0 4.5 0Civil works 16.6 49.9 66.5 75Equipment and educational materials 3.7 20.0 23.7 85Furniture 2.8 6.4 9.2 70Training 6.8 6.8 13.5 50C onsultants' services and studies

Provinces 0.0 2.9 2.9 100Central 0.1 0.6 0.7 80

Contract teachers 0.2 0.7 0.9 80Scholarships 8.2 8.2 16.4 50Operating Costs /a 0.0 1.7 1.7 100Incremental Recurrent Costs 3.5 0.0 3.5 0Unallocated 1.0 1.8 2.8

Total 47.4 99.0 146.4 68/a Includes expenditures for travel, per diem, allowances and consumable materials, necessary forproject implementation.

C. PROCUREMENT

4.8 The procurement division of the Kanwil Office in each province would be in charge ofprocurement under the general guidance of the designated project leader (Pimpro) in eachprovince. Whenever necessary (such as in the case of conducting ICB), the procurementdivision at the provincial level could request the assistance of specialized expertise from theMOEC Directorate for General Secondary Education (Dikmenum). The construction activitiesfor the proposed project would be supervised from Dikmenum by a local consultingarchitect/engineer who would be hired under the Project. This person would be a technicallink between local monitors in the procurement division in each Kanwil, the CPCU in MOECin Jakarta and the Bank, including in particular its procurement staff in RSI. He/she wouldensure, inter alia, that the bidding procedures and contract awards are implemented inaccordance with the agreed rules and procedures. Procurement arrangements are summarizedin Table 4.4.


Table 4.4: Procurement Arrangements (US$ million)

, .-. ... ~~~~. .... : ,--:. -:-::-: .... ................. .... ..... ::

FiEsP; , , ,.w - ., .. , .. . ,.. ..... . .......... -. -.. .. V

Land Acquisition 4.5 4.5(0.0) (0.0)

Civil Works 42.3 25.5 67.8(31.7) (19.1) (50.8)

Equipment and educational materials 8.1 4.0 2.3 14.4(8.1) (3.2) (1.5) (12.8)

Library and reading books 10.0 10.0(7.6) (7.6)

Furniture 7.9 1.5 9.4(5.6) (1.0) (6.6)

Training 14.0 14.0(7.0) (7.0)

Consultant's services and studies 3.6 3.6(3.5) (3.5)

Contract teachers 0.9 0.9(0.7) (0.7)

Scholarships 16.6 16.6(8.3) (8.3)

Operating costs 1.7 1.7(1.7) (1.7)

Recurrent Costs 3.5 3.5(0.0) (0.0)

Total 8.1 54.2 76.1 8.0 146.4(8.1) (40.5) (50.4) (0.0) (99.0)

Note: Figures in parentheses are the respective amounts financed by the Bank.N.B.F. - Not Bank Financed

/a Includes national shopping, selection of consultants following the Bank guidelines, training,workshops, scholarships, contract teachers and operating costs, using Governrnent administrativeprocedures acceptable to the Bank.

4.9 The loan proceeds would be used to finance procurement of works, goods and servicesunder all project components. All procurement of works and goods would be done inaccordance with the Bank's "Guidelines for Procurement under IBRD Loans and IDACredits" (dated January 1995 and revised in January 1996) for the following:


(a) Civil Works (estimated total value US$67.8 million equivalent). Civil workswould comprise construction of new schools (six- and three-classroom),extension of classrooms, libraries, teacher dormitories, largely in rural andremote areas. Individual contracts for specific location, which are expected toaverage about US$100,000 equivalent each, are not expected to attract foreignbidders. Because of the large number of small size contracts in remote areas,and the need to decentralize management of sub-projects, all works would becontracted by national competitive bidding (NCB), advertised nationally andfollowing government's procedures and regulations acceptable to the Bank.Small works estimated to cost less than US$50,000 equivalent per contract, upto an amount not to exceed US$25.5 million, may be awarded on the basis ofquotations obtained from three qualified domestic contractors.

(b) Equipment and Educational Materials (estimated total value US$14.4million equivalent). Equipment includes, inter alia, computers and peripheralfor information management and student performance assessment, and officeequipment for provincial and district offices. Educational materials includeteaching aids for math, science, social studies, and science kits for juniorsecondary schools, and development and production of booklets, videos,posters and radio messages under the social marketing sub-component and ofhandbooks/manual. To the extent practicable, contracts for goods would begrouped in bid packages estimated to cost US$200,000 equivalent or more.Educational materials and equipment packages valued at or above US$200,000would be awarded through intemational competitive bidding (ICB) procedures,and using the Bank's standard bidding documents for procurement of goods,which have already been used under the ongoing Second Secondary Educationand Management Project (Ln. 31 58-IND). Locally manufactured goods wouldbe granted a domestic margin of preference of 15 percent of the CIF price orthe import taxes and duties which a non-exempt importer would have to pay,whichever is lower. Contract packages valued at less than US$200,000equivalent and up to an aggregate amount of US$4.0 million equivalent wouldbe awarded through national competitive bidding (NCB) procedures acceptableto the Bank. Contract packages valued at less than US$50,000 equivalent, upto an aggregate amount of US$2.3 million equivalent, may be purchasedthrough national shopping on the basis of a minimum of three price quotations.

(c) Library and Reading Books (estimated total value US$10.0 millionequivalent). In view of the wide variety of available books for school librariesand the relatively small number of copies ordered from each book, contracts forsupply of library and reading books to the schools would be awarded on thebasis of national shopping procedures with at least three price quotations,following govemment procedures acceptable to the Bank. Books would beprocured by the PIUs, which would inform the JSS principals of the budgetavailable to each school, and then consolidate the orders from the schoolprincipals.


(d) Furniture (total estimated value US$9.4 rmillion equivalent). Most furniturecontracts are not expected to exceed US$200,000 equivalent. They would beprocured through NCB procedures acceptable to the Bank. Fumiture contractscosting less than US$50,000 equivalent may be purchased through nationalshopping procedures with at least three price quotations up to an aggregateamount of US$1.5 million equivalent.

(e) Training (estimated total value US$14.0 million equivalent). In-serviceteacher training (PKG Model C and MGMP), management training for staff ofthe Dikmenum, project provinces, districts and subdistrict, and schoolprincipals and deputies, seminars and workshops would be organized andcontracted out in accordance with govemrnment procedures acceptable to theBank, using standard forms of contract acceptable to the Bank.

(f) Scholarships (estimated total value US$16.6 million equivalent). Scholarshipswould be awarded in accordance with the criteria agreed with the Bank and theGovernment administrative procedures.

(g) Contract teachers Contract teachers (estimated total value US$0.9 millionequivalent) would be selected in accordance with the procedures and criteriaacceptable to the Bank.

(h) Technical Assistance (estimated total value US$3.6 million equivalent).Domestic and intemational consultants for project implementation andmonitoring, development and production of management training and OpenSMP tutor training courses, and a science education study, would be selectedm accordance with the Bank Guidelines for Use of Consultants. All trainingand consultancy contracts would use the Bank's standard form of contract forconsultants.

(i) Project operating costs totaling US$1.7 million would be met followingGovernment adrministrative procedures, acceptable to the Bank.

4.10 Procurement Review. The following are the guidelines regarding procurementreview:

(a) All contracts for works and goods valued at or over US$200,000 equivalent,and the first three civil works contracts each in East Java and NTT would besubject to prior review by the Bank, whereas all other contracts would besubject to random post review.

(b) All individual consultants' contracts valued at or over US$50,000 equivalentand contracts with consulting firms valued at or over US$100,000 equivalentwould be subject to prior review by the Bank. Other consultants' contractswould be subject to random post-review. However, all terms of reference andsingle-source selection of consultants would be subject to prior review.


(c) Annual training plans for each year would be submitted to the Bank for reviewand discussion. Training contracts would be subject to random post-review.

(d) Annual implementation plans and budgets would be subject to annual reviewsand discussions between the Government and the Bank.

4.11 There would be no contract exceeding US$5 million under this project. Roughly 47percent of civil works contracts and 36 percent of goods contracts procured under the projectare estimated to be subject to prior review. The relatively low proportion covered by priorreview is due to the large number of contracts expected to cover small amount as shown inAnnex 19; all these contracts are the responsibility of the PPIUs. The procurement consultantwill help ensure that the bidding procedures and contract awards are implemented inaccordance with the agreed rules and procedures. For contracts not covered by prior review,post-review of such contracts would be carried out by RSI staff supported by the procurementconsultant in the CPCU. For new implementing agencies, one out of five such contracts wouldbe post-reviewed for the first year of implementation, followed by one out of 20 such contractsin succeeding years (Annex 19).

D. DISBURSEMENTS

4.12 The proposed loan of US$99.0 million equivalent would be disbursed over a period offive and one-half years (Annex 20). Disbursements are expected to be completed by June 30,2002, the Loan Closing Date. The disbursement schedule is based on the implementationschedule and the standard disbursement profile for education projects in Indonesia.Disbursements estimated for FY97 are based on the proposed initial deposit into the projectSpecial Account and replenishment. Disbursements would be made as follows:

Amount % of expendituresCateeorv (US$ million) to be financed

(1) Civilworks 49.9 75%

(2) Equipment and 20.0 100 % of foreigneducational materials expenditures,

100 % of local (ex-factory)expenditures, and 65 % oflocal expenditures for otheritems procured locally

(3) Furniture 6.4 70%

(4) Training 6.8 50%


(5) Operating costs3 1.7 100%

(6) Scholarships 8.2 50%

(7) Contract teachers 0.7 80%

(8) Consultant' services and studies:

(a) Provinces 2.9 100%

(b) Central 0.6 80%

(9) Unallocated 1.8

Total 99.0

4.13 Disbursement from the loan for all contracts for civil works, equipment, educationalmaterials and furniture valued at or above US$200,000 equivalent per contract and consultantfirm contracts valued at or above US$100,000 equivalent and individual consultant contractsvalued at or above US$50,000 equivalent per contract would be made against fulldocumentation. All other disbursements would be made against statements of expenditureprocedures for which relevant documents would be retained by responsible agencies and madeavailable for review as requested by visiting Bank missions. In order to facilitatedisbursements, a Special Account in the amount up to US$5.0 million, which is based on theneed for funds to cover the expenditures on average for four months, would be established atBank Indonesia. This account would be maintained by the Directorate General of Budget,Ministry of Finance. The special account would be used for all eligible foreign and localexpenditures. Replenishment applications to the Special Account will be made on a monthlybasis, or when 20 percent of the initial deposit has been used, whichever comes first.

E. ACCOUNTs, AuDffs AND REPORTS

4.14 Designated government authorities would establish separate project accounts for allproject expenditures, to be maintained by each of the implementing agencies (Kanwils in EastJava and NTT, and MOEC) for their respective expenditures in accordance with soundaccounting practices. Accounts and documentation supporting the Statement of Expendituresand Special Account would be maintained separately by DG Budget, MOF. Consolidatedproject account statements would be prepared semi-annually as part of the project progressreport by CPCU in MOEC, based on the provincial project accounts statements. Theconsolidated project account statements would be audited annually in accordance with Bankguidelines, by independent auditors acceptable to the Bank. The audit report would contain aseparate opinion by the auditors on the statement of expenditures used as a basis for

3 Operating costs include expenditures for travel, per diem, allowances and consumable materialsnecessary for project implementation.


disbursement. Certified copies of the consolidated project accounts statements for each fiscalyear, together with the auditor's statement, would be furnished to the Bank as soon asavailable, but not later than six months after the end of each government fiscal year. Atnegotiations, the Government provided assurances that the project accounts including thespecial account and SOEs would be audited annually by independent auditors satisfactory tothe Bank and audit reports would be furnished to the Bank within six months of the end of theGovernment 'sfiscal year (para. 7.1(e)).

4.15 The CPCU would monitor progress in project implementation and submit semi-annualprogress reports to the Bank. Within six months after the project completion, the CPCU wouldsubmit an implementation completion report to the Bank.


5. PROJECT MANAGEMENT AND SUPERVISION

A. PROJECT MANAGEMENT

5.1 Provincial Project Implementation Units (PPIU). The project would beimplemented by Provincial Project Implementation Units in Surabaya (East Java) and Kupang(NTT), and would be overseen by a Central Program Coordination Unit at MOEC'sDirectorate General for Secondary Education (Dikmenum) in Jakarta (see Annex 21). EastJava and NTT Kanwils would establish within their administrative structure a ProvincialProject Implementation Unit preferably headed by the provincial Director of SecondaryEducation (Kabid Dikmenum), assisted by a Procurement Officer, a Disbursement Officer anda Teacher Development Officer. The PPrU would be overseen by a Provincial ProjectAdvisory Committee which would be chaired by the head of MOEC provincial office(Kakanwil), and would include the provincial directors of Secondary Education, Planning,Procurement, and Finance, representatives of Dinas and Public Work, and a representative ofthe provincial office of MORA (see Annex 22). At negotiations the Government providedassurances that it would: (a) establish and staff the two Provincial Project ImplementationUnits in accordance with terms of reference acceptable to the Bank; and (b) establish the twoProvincial Project Advisory Committees with the composition and terms of referenceacceptable to the Bank, no later than November 1, 1996, and maintain them until thecompletion of the project (para. 7.1(b) & (c)).

5.2 The PPIU would be responsible for managing the implementation of various projectcomponents through the services of Kanwil and Kandep sectors, and would be responsible forpreparing an annual implementation plan and budget to be submitted to the CPCU. The PPIUwould also be in charge of producing annual implementation performance reports. At theKandep level, implementation would be insured by a Task Force headed by the KandepDirector (Kakandep) assisted by the heads of planning and curriculum sections.

5.3 Central Program Coordination Unit (CPCU). Dikmenum would establish withinits central structure a Central Program Coordination Unit headed by the Director ofDikmenum, who would be assisted by a Senior Project Coordinator, an Intemational Advisor, aProcurement Officer, a Disbursement Officer, a Monitoring and Evaluation Officer, and aproject-specific Liaison Officer. The CPCU would insure that the overall and annual projectimplementation plans and budgets prepared by the PPIU be in accordance with projectobjectives. The CPCU would provide broad technical guidance to the PPIUs of all secondaryeducation projects, and would prepare the Project Implementation Handbook (see para. 5.8).At negotiations the Government provided assurances that it would. (a) establish and staff theCentral Program Coordination Unit in accordance with terms of reference acceptable to theBank; and (b) establish the Central Program Advisory Committee with the composition andterms of reference acceptable to the Bank, no later than November 1, 1996, and maintainthem until the completion of the project (para. 7. I (b) & (c)).

5.4 A Central Program Advisory Committee would facilitate CPCU consultation andcoordination on major project implementation issues. It would include senior officials from theMOEC, BAPPENAS, Ministry of Finance, Ministry of Religious Affairs, Ministry of Home

44 East Java and NlT Junior Secondary Education Project

Affairs, State Ministry for Administration Reform (MENPAN), the State Civil ServiceCommission (BAKN), and the East Java and NTT Kakanwils.

5.5 Implementation Schedule. The proposed project would be implemented over aperiod of five years, the completion date being December 31, 2001. The detailed schedules ofimplementation of all project activities (Annex 23), costs by year and components (Annex 18)procurement (Annex 19), and disbursement (Annex 20) would serve as the basis for projectimplementation and would be updated annually by the CPCU and the PPIUs. The closing dateof the project is June 30, 2002.

5.6 Technical Assistance. A total of 1,184 person/month will be required at a cost ofUS$3.1 million. In all project components, the technical assistance requirements would besatisfied largely (95 percent) through the provision of national consultants. Internationalconsultants (5 percent) would be recruited only in areas in which local expertise is limited orlacking altogether. International expert assistance is designed as institution building particularlyat the province level rather than "substitutive" services directly rendered as part of projectimplementation activities (see Annex 24).

5.7 Project Launch Workshop. To facilitate project start-up activities, fanilianrze PPIUand CPCU staff and Kanwil project-associated staff with project and Bank procedures-especially bidding documentation- and guarantee thereby an adequate and timely projectimplementation, a project launch workshop of a heavily operational nature would be conductedearly during the project implementation process. This workshop has a crucial importance forproject implementation due to the province-based management structure and the incipientexperience with project-related Bank requirements at province level.

5.8 Project Implementation Handbook. For the day-by-day practice of projectimplementation CPCU, PPIU and Kandep staff will rely upon a Project ImplementationHandbook. Written in Bahasa Indonesia, the Handbook will describe in detail and in concreteterms the methodology, procedures and multiple steps of project implementation and projectmonitoring. Its content will draw mostly from the project Staff Appraisal Report and LegalDocuments, GOI and Bank procurement and disbursement guidelines, and will seek to emulatethe best practices in the country. The Handbook is expected to: (a) become the key anduniform point of reference for all levels of project management; (b) provide users with readyanswer for problem solving; and (c) offset the relatively insufficient lack of experience withproject management at the provincial level. Dikmenum discussed an outline of the handbookwith the appraisal mission. Within the next three months a JGF consultant--in dialogue withDikmenum and Kanwils, other government agencies, and RSI--will help GOI prepare a draftversion to be submitted for Bank consideration on July 31, 1996, and then finalized by August31, 1996.

B. PROJECT SUPERVISION

5.9 Monitoring and Evaluation. Monitoring of project implementation would be theresponsibility of the PPIUs at the provincial level, and of the CPCU at the central level, whichhas a Monitoring and Evaluation Officer. The implementation progress of the project wouldbe assessed through monitoring activities and formative evaluation using the detailed


performance indicators. Additionally, outcome indicators have been identified to guidedevelopment impact evaluation. The above indicators would also form the basis of technicalsupervision by the Bank. The supervision plan is summarized in Annex 25. Data from thedetailed performance indicators for monitoring and evaluation (Annex 25) would beincorporated in the semiannual progress reports prepared by the Govemment and subrmitted tothe Bank. At negotiations the Governement provided assurances that it would implementpolicies and procedures to enable adequate project monitoring and evaluation in accordancewith agreed indicators (para. 7. (d)).

5.10 Annual Implementation Reviews. The annual reviews would take place by Octoberof each project year, starting in 1997, and would: (a) analyze the previous year's performanceand budget execution against project objectives and indicators; (b) analyze the proposed workplan and budget for the following year; (c) discuss adjustments to be made in project'simplementation schedule; and (d) analyze the results of the project evaluation. The proposedwork plan and budget for the following year would have to be previously defined at the centraland state levels and contain a detailed description of targets and planned activities. Plans forcivil works would specify type and schedule of construction and provide evidence of ownershipor donation of school or dormitory site and of adequate assignment of school teachers and staff(see Annex 26). At negotiations the Government provided assurances that it would. (a)prepare and present to the Bank annual progress reports on project implementation andplans for the next year, with targets and budgets in each project component, by July 31 ofeach year, starting in 1997; (b) carry out annual reviews of project implementation with theBank by October 31, starting with the review of the first 18 months of project implementation;and (c) carry out annual reviews of the budgets of project provinces to evaluate use of theprevious year's budget as a basis for preparing the DIP for the following year (para. 7. If(g) & (h))-

5.11 Mid-term Review. A comprehensive mid-term review would be conducted inOctober 1999 to assess project performance and initial impact in light of project objectives andexpressed in project indicators and Govemment policies in addition to review activitiesnormally covered under annual implementation reviews (see Annex 26). The mid-term reviewwould have a strong focus on the formulation and carrying out of sectoral policies, particularlyfor institutional strengthening at both province and district levels, and on redefining thecomponent or element where major problems were positively identified. The PPIUs and theCPCU would be responsible for hiring consultants and preparing the final terms of referencefor the mid-term review, based on experience accumulated under the project and the final orpreliminary results of studies, satisfactory to the Bank, and for preparing the report withrecommendations. At negotiations the Government provided assurances that it wouldprepare and present to the Bank a mid-term report on project implementation and plans forthe remaining years of the project, by July 31, 1999; and review the report together with theBank by October 31, 1999 (para. 7. 1j)).

5.12 Technical Audits. Dikmenum has the overall responsibility to monitor all projectactivities and routine monitoring would be done through annual reviews. However, because alarge number of contracts would be financed under SOE procedures, an independent, qualifiedfirm with extemal technical assistance would be hired to conduct technical audits of key projectactivities. The audits would cover activities in progress and post reviews of completed actions


to examine whether implementation of the various project components are technicallyappropriate and to recommend corrective measures if necessary (see Annex 27). Atnegotiations, the Government provided assurances that technical audits would be carried outevery year during the implementation of the project in accordance with terms of referenceand in a manner acceptable to the Bank, and that copies of the technical audit reports will befurnished to the Bank for comments no later than three months after the end of the FiscalYear (para. 7.10).

5.13 Completion Report. A project implementation completion report is due no later thansix months after the Closing Date of the loan or such later date as may be agreed for thispurpose between the Borrower and the Bank. The report to be compiled by MOEC isexpected to provide a critical overview of project inputs, processes and outcomes. Moreprecisely the completion report will summarize (a) project results and impact on the basis ofindicators; (b) key project activities and management; (c) institutional lessons learned fromproject implementation; (d) the project's financial status; (e) implementation issues andrecommendations; and (f) the plan designed to ensure the continued achievement of theobjectives of the project. At negotiations the Government provided assurances that it wouldfurnish to the Bank within six months after the project closing date a plan designed to ensurethe continued effectiveness of the project objectives (para. 7. 1 (k)).


6. PROJECT BENEFITS AND RISKS

A. EXPECTED BENEFITS

6.1 The benefits of the proposed project derive from meeting the high demand for juniorsecondary education where it exists and stimulating demand where it may be constrained dueto low income and/or credit market failures. The expected outcomes of the investment are: (a)increased numbers of higher quality junior secondary graduates; (b) more students at higherlevels of education as approximately 80 percent of junior secondary graduates proceed tosenior secondary education and another 30 percent continue to tertiary education; (c) povertyreduction and greater distribution gains in the economy as a result of focused junior secondaryeducation improvement for low income and rural students; (d) externalities derived from girls'education such as lower fertility, increased prenatal care utilization, their families' improvedhealth and nutrition status and children's higher educational attainment; (e) greater professionalqualification of teaching and managerial staff; and (f) better quality data on students' andschools' performance for the decision-making process. More specifically, the project will havea positive impact on women and the poor, which is detailed in para. 3.16-3.17.

6.2 Outcomes (a) and (b) above are generated as a result of the increased access andenhanced quality that the project investment will ensure. The table below presents the stream ofbeneficiaries as a result of access and quality interventions over the next ten years (see Annex1, Section IV for details).

Table 6.1: Number of Beneficiaries of Project Investments(stream over 10 years)

Component East Java NTT Total ProjectAccess 61,982 20,402 82,384Quality 398,311 99,405 497,716Total 460,293 119,807 580,100

B. ENVIRONMENTAL IMPACT

6.3 The proposed project is expected to positively affect the environment through greateremphasis on environmental concems in teacher training activities, the content of reading,supplementary and reference books, and the development of a science education approachmore closely linked to daily life interests. This blend of curricular inputs would very likelygenerate in the young learners and future citizens the necessary awareness of, and commitmentto, environmental issues. The project would have no direct environmental effects and isclassified as a Category C project.


C. SUSTAINABILITY

6.4 Project sustainability hinges on financial and institutional conditions that already existin the system and will be strengthened over the five-year project. The financial conditionsneeded to keep teachers in classroom, schools well kept and the scholarship program for thepoorest children are existing programs that will be expanded under the project and will rely onincreasing budget resources for basic education. The system is expected to become moreefficient with the efficiency-and productivity-oriented elements sponsored by the project Theinstitutional conditions involve both the strategy for the development of the nine-year basiceducation system, and the improvement of management structure and skills. With the localownership and managerial skills supported under the project, the system is expected toincorporate the required capacity and motivation to maximize the use of available resourcesand yield at least the same results as the project itself Fiscal sustainability in the two provincesis analyzed below.

6.5 East Java. Based on the above assumptions, total project costs for East Java(including physical and price contingencies, and taxes) estimated at US$103.1 million, wouldaccount for about 6 percent of the East Java education budget, on average, during the projectperiod (1996/97-2001/02). Incremental recurrent expenditures, which are negligible in the firsttwo years of the project increase from US$0.2 million in 1998/99 to US$2.4 million in the lastyear of the project, and stabilize at US$3.1 million after the project is completed, representing1.0 percent of the education budget. Thus the long-term recurrent cost implications of theproject are small and manageable.

6.6 NTT. Based on the above assumptions, total project costs for NTT (including physicaland price contingencies, and taxes) estimated at US$49 million, would account for about 18percent of the NTT education budget, on average, during the project period (1996/97-2001/02). Incremental recurrent expenditures, which are negligible in the first two years of theproject increase from US$0.2 million in 1998/99 to US$1.9 million in the last year of theproject, and stabilize at US$2.5 million after the project is completed, representing 4.7 percentof the education budget. The recurrent cost implications of the project in NTT areapproximately 4 times higher than that for East Java. Given the much lower level of JSEenrollments in NTT compared to East Java, a higher level of resource (relative to currentregional budgetary patterns) need to be directed to NTT to sustain the investment.

D. RISKS

6.7 The main risks associated with the proposed project are:

(a) Private sector participation in junior secondary may decline in absolute orrelative terms which would have significant budgetary implications for thepublic sector. If the share of the private sector in JSE enrollment declines butremains at its current absolute level of about 328,000 students in East Java and40,000 in NTT (which means a decline in relative share from the current 40percent to about 20 percent), the budgetary shortfall in the next five years (seepara. 1.8) would be twice the shortfall if the private sector retains its 40 percent


share (see Annex 1, Section II for details). Furthermore, if private enrollment isphased out (except for enrollment in religious schools), the budgetary shortfallin the next five years would be three times the level of shortfall if the privatesector continues its significant role. The risk of the decline in the private sectorparticipation is partly mitigated by the involvement of project advisorycommittees at CPCU and PPIUs, with the participation of the MOECDirectorate for private education.

(b) The quality improvement component of the project may prove to be costlierand to take longer than initially planned, thus postponing or reducing itsexpected benefits. The risks from the labor market side lie in not rewardinghigher quality graduates with a sufficiently high wage premium to generate theestimated economic rate of return of the quality component of the project: thebase case estimate of the economic rate of return assumes that higher qualitygraduates will reap a 15 percent additional wage premium in the labor market.This generates a rate of return to quality of 22 percent in NTT and 17 percentin East Java (see Annex I, Section IV). Sensitivity analysis indicates that a 10percent (versus 15 percent) quality wage premium will reduce the rate ofreturn to 12 percent in East Java and 17 percent in NTT.

(c) Implementation by PPRUs in the provincial and district offices operating in aninstitutional environment still in transition to less centralized procedures. Thequestion is about the possibility of locally managing a centrally allocatedproject when all incentive systems, particularly in personnel management, areunder central control.

(d) The insufficient implementation experience available at the provincial anddistrict offices to manage all the aspects of the project implementation processwithout previous experience with Bank requirements and procedures.

6.8 The proposed project intends to reduce the risks of:

(a) private decline by reinforcing the mechanisms for school mapping in East Javaand NTT, so as to avoid construction of public schools in the catchment area ofan existing private school, and by providing support to private schools (teachertraining, library books and teaching aids) to improve their role in the systemand including the Directorate of Private Education in the Central ProgramAdvisory Committee (see para. 5.4);

(b) slower quality improvement by using training programs which have already along, positive track-record and supporting further improvement of theseprograms (such as PKG and MGMP for teacher training and the MOECprogram for student performance assessment); providing the PPIUs withdetailed terms of reference (Science and Technology Education Study);

(c) ongoing deconcentration by confirming assurances from the Govemment thatit is committed towards the deconcentration of responsibilities, and that it will


set up: (a) two Provincial Project Implementation Units -PPIU- (one in EastJava and another in NTT) to manage the project at provincial level incoordination with Kandeps (district offices); and (b) a Central ProgranCoordination Unit -CPCU- designed to provide technical assistance and carryout assessment.

(d) insufficient implementation experience by providing PPIUs with assistance(project launch workshop, distribution of Project Implementation Handbooks,coordination by CPCU, national and international consultants); providingselection criteria for several components; getting regular feedback from RSIand World Bank supervision missions.


7. AGREEMENTS REACHED AND RECOMMENDATION

A. AGREEMENTS REACHED

7.1 During Negotiations the Government provided assurances that it would:

(a) select locations for the construction of schools and dormitories, employ contractteachers, award scholarships, and select candidates for management training inaccordance with criteria agreed with the Bank (para. 3.3);

(b) establish and staff the Central Program Coordination Unit and the two ProvincialProj ect Implementation Units, in accordance with terms of reference acceptable tothe Bank no later than November 1, 1996, and maintain them until the completionof the project (para. 5.1 & 5.3);

(c) establish the Provincial Project Advisory Committees in the two provinces and theCentral Program Advisory Committee by November 1, 1996, with the compositionand terms of reference acceptable to the Bank (para. 5.1 & 5.3);

(d) implement policies and procedures to enable adequate project monitoring andevaluation in accordance with agreed indicators (para. 5.9)

(e) provide project accounts including the special account and SOEs audited annuallyby independent auditors satisfactory to the Bank and audit reports within sixmonths of the end of the government fiscal year (para 4.14);

(f) carry out annual technical audits of project implementation and provide them to theBank no later than six months after the end of each fiscal year (para. 5.12);

(g) prepare and present to the Bank annual progress reports on project implementationand plans for the next year, with targets and budgets in each project component, byJuly 31 of each year, commencing July 31, 1997 (para. 5.10);

(h) carry out annual reviews of project implementation with the Bank by October 31,starting with the review of the first 18 months of project implementation (para.5.10);

(i) carry out annual reviews of the budgets of project provinces to evaluate use of theprevious year's budget as a basis for preparing the DIP for the following year(para. 5.10);

(j) prepare and present to the Bank a mid-term report on project implementation andplans for the remaining years of the project, by July 31, 1999; and review the reporttogether with the Bank by October 31, 1999 (para. 5.11); and


(k) furnish to the Bank within six months after the project closing date a plan designedto ensure the continued effectiveness of the project objectives (para. 5.13).

B. RECOMMENDATION

7.2 Subject to the above agreement and conditions, the proposed project is suitable for aBank loan of US$99 million equivalent to the Republic of Indonesia, for a term of 20 years,including a grace period of five years, at the Bank's standard variable interest rate.

Annex 1: Page I of 18

INDONESIAEast Java And NTT Junior Secondary Education Project

ECONOMIC ANALYSIS OF THE JUNIOR SECONDARY EDUCATION PROGRAMAND PROJECT

The economic analysis conducted for the East Java Secondary Education Projectconsists of: (i) demand analysis and rationale for public investment in junior secondary; (ii)fiscal analysis; (iii) analysis of alternatives; and (iv) cost-benefit analysis.

The economic analysis first aims to understand the determinants of demand for juniorsecondary education in Indonesia particularly since there have been variations in the pastdecade and there are significant disparities among socio-economic groups (Section I). Thissection establishes that the main determinants of demand are household incomes, costs ofschooling and distance to school; the latter two are variables that Government can affectthrough this project. The rationale for additional public investment in junior secondary isinvestigated subsequently (Section 1), and it is argued that on both efficiency and equitygrounds, there are justifications for additional public intervention in expanding juniorsecondary.

The cost implications of the Government's expansion program (Section II) are thenconsidered. A key element is the future role of the private sector in the provision of juniorsecondary education. The conclusions reached are that a sizable budgetary effort will berequired, but that the policy is attainable if the economy continues to grow at its historicalrate, additional funds are made available to junior secondary including external borrowingand the private sector retains its current large share.

The next question that arises is how best to provide junior secondary education. TheGovernment has at its reach both demand and supply policy instruments and within the latterseveral alternative modes of junior secondary exist. These are analyzed in Section 111.

Finally, the costs and benefits of the specific project design are laid out and aneconomic rate of return is calculated (Section IV). The financial impact of the project on theprovincial budgets and prospects of sustainability is analyzed in Section II.

54 Annex 1: Page 2 of 18

I. DEMAND ANALYSIS AND RATIONALE FOR PUBLIC INVESTMENT IN JUNIOR SECONDARY

Enrollment at the junior secondary level expanded rapidly between the late 1960'sand 1980's, reaching 63 percent in gross terms in 1988 (47 percent NER).1 For the next fiveyears, however, enrollment fell to 52 percent (41 percent NER) by 1993 (declining inabsolute terms from 7.8 million to 7.1 million students). Recent data indicate a resurgence ofdemand in the last two years (GER and NER rose to 58 percent and 47 percent respectivelyby 1995) almost restoring the pre-decline enrollment rates.

There remain significant differences in enrollments, however, among income groupsand urban-rural residents. In 1994, the net enrollment rate among the top quintile was 66percent compared to 25 percent for the lowest quintile.2 Significant differences also existamong urban and rural enrollment rates: 62 percent of urban children aged 13-15 years oldare in junior secondary, compared to 33 percent of rural children. When decomposed byincome and urban-rural levels, enrollments are low for the poor and near-poor children inboth rural and urban areas, and the middle income rural children.3

High direct costs are one of the primary factors explaining the low junior secondaryenrollment rates among the poor and near-poor. Overall, the cost to families of educating achild in junior secondary comes to an annual average of Rp210,000 (1994). This is more thantwo-and-a-half times the cost of primary education (an average Rp8O,000).4 For householdsin the lowest quintile, total expenditure per junior secondary student is equivalent toapproximately 80 percent of per capita household expenditure. Particularly significant are theup-front registration (entrance) fees that parents must pay: in 1994, the average entrance feefor junior secondary was Rp47,500, which for those in the two lower quintiles was five timesmore than the registration fee paid for primary education.

Indirect (opportunity) costs of junior secondary education are significant in ruralareas, and this exacerbates the effect of high direct costs especially among the poor. Schoolsare in short supply in rural areas which imposes high travel time and costs. The longer thetravel time, the higher the opportunity cost of schooling, and the more reluctant parents willbe to send their children to school. Though the difference between average travel time toprimary school for urban versus rural residents is insignificant, the national average traveltime to junior secondary schools in rural areas is 50 percent higher than in urban areas.5

Earnings foregone while attending school can also be significant among the poor.

Parents' decisions to send a child to junior secondary education depends on theaforementioned costs and also on:

1 Statistik Persekolahan, Pusat Informatika, MOEC; Statistik Keagamaan, MORA.Calendar year (i.e. 1988) in this note refers to school year (i.e. 1987/88) in the enrollment statistics.2 Indonesia Family Life Survey: Overview and Descriptive Analysis of the Population, Health, andEducation Data, RAND (October 1995)3 Ibid.4 Ibid.5 Ibid. Since travel times are reported by parents whose children are enrolled in school, they are likely tounderestimate the travel time families face when making a decision regarding whether or not to enroll theirchild. The survey reports average travel time in rural areas of 30 minutes versus 19 for urban areas.

Annex 1: Page 3 of 18 5

1) income constraints and credit markets failure. The poor have not only low income butalso greater difficulty to borrow. Particularly in the area of human capital investments, thepossibility of borrowing is practically non-existent even among better off families. Thisimplies that private demand for junior secondary and, as a result, current enrollment, is lowerthan its social optimum.

2) t b se e _. A tangible benefit associated with juniorsecondary education is the additional labor income that would accrue to the graduatecompared to someone who left school after completion of primary education. Under normal(steady-state) conditions, the wage differentials between primary and junior secondaryeducation should reflect the socially optimum amounts of education in the labor forcerendering corrective action by the government unnecessary. However, Indonesia is in a stateof rapid transition. Examining the behavior of the labor market, a conclusion that emerges isthat formal sector employment is growing relatively slowly (compared to education output)and wage differentials have been compressed (due to fast growth in enrollment among thebetter off).6 These patterns give the short-term but false "signal" to poor families that juniorsecondary education has neither direct wage rewards nor significant employment prospectsoutside agriculture or the informal sector. Indeed, in the period 1988 to 1991 even absoluteenrollments in junior secondary education declined. This disequilibrium phenomena worksagainst long-term investments, such as those in human capital, and justify Governmentsupport to stabilize short-run variations and to steadily increase junior secondary enrollments.

3) how farsighted parents are. Parents are making decisions today in light of the fact thatjobs in the formal sector are expanding at a lower pace than education (hence theaforementioned wage compression and also the higher rates of unemployment among theeducated). However, as the economy approaches the turning point (expected to take placewithin the decade) and as has happened in other NICs, the transformation of the economyfrom an agrarian one to one that relies heavily on the education and productivity of itsworkers would be fast. At that point, corrective action in the form of training is typicallyexpensive. For example, it is estimated that training requires six times the costs of basic

7education in order to achieve the same effect on productivity and wages.

4) the prospects of continuing to senior secondary. Since junior secondary education isthe stepping stone for proceeding to senior secondary (and tertiary) education, families cangive consideration to the costs and benefits of completing senior secondary education. Thecost of senior secondary is more than double that of junior secondary (Rp460,000 per year)and may in turn deter parents from investing in junior secondary. Also, as with the earningsof junior secondary graduates, the wage premium of senior secondary education has declinedsignificantly over time.

6 See Training and the Labor Market in Indonesia: Policies for Productivity Gains and Employment Growth,World Bank (1996) Chapter 1. The wage premium for urban junior secondary graduates relative to primaryhave declined over the past decade (while still positive) from 80 percent to 30 percent for males and 166percent to 60 percent for females. (Ibid.)7 Training and the Labor Market in Indonesia: Policies for Productivity Gains and Employment Growth,World Bank (1996); Box 2.1.

56 Annex 1: Page4 of 18

In short, enrollments in junior secondary education can increase if direct costs ofeducation are reduced (such as through scholarships, fee reductions, etc.) and if indirect costsare alleviated (e.g. through more and better geographical distribution of schools). On thebenefit side, though little can usually be done with the respect to how the relative supply anddemand of educated/less educated workers operate in the labor market, there are policies thatincrease the value of education through improving its quality. Quality also affects thedecision of parents to enroll their children and a child's progress through school. There areimprovements to be made on the input aspects of quality, for example, 30 percent of juniorsecondary students still do not have mathematics textbooks. But the more important (andcomplex) area of improvement appears to be in the process of how inputs are combined toeducate students and the interactions between teachers and students. Evidence on this forjunior secondary in Indonesia is scant, but findings from research conducted in primaryschools indicates that the problem may lie in the teacher's inability to identify, diagnose andaddress student progress in the classroom.8 Another indicator of quality is the relative lowscores in reading competency tests of Indonesian students by international standards.

Externalities. Research from other countries has pointed to the existence of positiveextemaliis such as reduced fertility and child mortality and improved nutritional status thatcorrelate with female secondary education.9 For Indonesia, survey results indicate that amother's education is an important determinant of prenatal care utilization: 25 percent ofwomen with some primary education do not use prenatal care compared to less than 10percent of women with junior secondary education.10 Furthermore, analysis of nutritionalstatus in Indonesia finds a strong effect of maternal education on children's nutritional status:for women with between zero and five years of education, an additional year of education hasno impact on the child's nutritional status, while, among women with six to twelve years ofeducation (or more), an additional year of education improves nutritional statussignificantly. 11

The four reasons given earlier on why private considerations may lead to a socialunderinvestment in junior secondary and the externalities from women's education all pointto the need for greater public involvement. Though we do not quantify the extent of marketfailure associated with these reasons (e.g., does credit market failure affect 10 or 10,000 poorchildren) some additional insight may be gained by looking at social rates of return toeducation that have been computed from 1986-1992. The estimates indicate that returns tojunior secondary education are the highest among other education subsectors (Table 1).Furthermore, while returns for all the subsectors may have declined during this period, thosefor junior secondary saw the smallest reduction.

8 'Some Basic Number Skills in Twelve Primary Schools: An Exploratory Study', Tony Somerset (1995)9 Subbarao and Raney (1993) examine the determinants of desired family size in 72 countries and find thatafter controlling for level of economic development and other factors, female secondary education is highlysignificant. Secondary education for females reduces fertility and mortality in several ways: (i) by enhancingthe opportunity cost of a woman's time in economic activities relative to child-bearing; (ii) by promoting childhealth which in turn affects desired family size; and (iii) by promoting more effective contraceptive use andwillingness to use modern contraceptive methods.10 RAND IFLS (October 1995).

11 "Nutritional Status in Indonesia: Evidencefrom the 1993 Indonesian Family Life Survey", E. Frankenberg, W.Surisatini, and D. Thomas ; RAND ( January 1996).

57Annex 1: Page 5 of 18

Table 1Index of Social Rates of Return to Primary and Secondary Education

1986, 1992 (JS 1992=100)Level of Education 1986 1992

Primary 146 55Junior Secondary 127 100Senior Secondary (Gen'l) 145 64Senior Secondary (Voc'l) 136 46Source: Calculated from McMahon and Boediono (1992); McMahon (1995)

In conclusion, there are both efficiency and equity grounds for public intervention injunior secondary education. The appropriate public interventions include building schoolfacilities in rural areas, providing scholarships to poor students, and enhancing quality.


II. FISCAL ANALYSIS

An analysis of the likely costs and implications for the public budget of achievinguniversal enrollment in junior secondary education by the year 2010 is presented below. Tefiscal impact of this project is then estimated.

A. Fiscal Implications of the Junior Secondary Education Expansion Program

The overall education expenditure in Indonesia is currently reasonably balancedacross primary (46%), secondary (13% junior, 15% senior) and tertiary (13%) levels.However, it has been subject to significant variations in the past and has not always beenprotected from budgetary cuts. Indeed, public expenditure on education has declined overtime as the graphs below demonstrate.'2 This is relevant in light ofthe Government's plans toachieve universal nine years of education, which will require significant additional publicresources to be spent on the junior secondary sub-sector, as well as on primary education.'3

INDONESIA INDONESIAPublic Education Expenditure as Percent of Public Education Expenditure as Percent of

GDP. 1984-9S Total Govornment Expenditure, 1984-96

4.50 ~~~~~~~~~~~~~~~~~~19.004.30 18004.103.90 17003.70 18.003.50 15.00a3.3 14.003.10 13.002.90 12.002.70 11 002.50 __

C (D 0 CDCD 0 D 8 ( D ( D 0 D ( D ( D C D CD CD m 0 D

Year Year

Achieving universal junior secondary enrollment in 15 years is a formidable task as itrequires increasing enrollments by 1.8 times (from 7.5 million to 13.5 million). It is thereforeimportant to define the role of the public and private sectors. Currently, the ratio ofpublic/private enrollment is about 60/40. We evaluate the cost implications of threealternative public/private scenarios, that is, universal junior secondary enrollment is achievedin year 2010 and:1) the public/private share stays at its current 60/40 ratio;2) private enrollment stays at its current 3.5 million/year; or3) private enrollment is phased out except for enrollment in religious schools which

is assumed to remain at its current level of I million students/year.

Under the 60/40 public/private scenario, enrollments in public schools are assumed toincrease annually by 240,000 students. Under the other two scenarios the annual increase will

12 The last two years are preliminary estimates.13 The exercise conducted here assumes that the graduation rate from primary school will increase from the currentrate of 75% to 100%. This will require additional investments at the primary level to increase retention.


be 400,000 and 533,000 students. In all scenarios it is assumed that the level of recurrentfunding remains at its present level of $110 per student/year which implies that there wouldbe no quality gains. Development costs (building new schools) are estimated to be around$900 per additional student. To address credit market failures and enable expansion amongthe poor, it is assumed that 10 percent of additional students in excess of the current 7.5million will receive a scholarship of $90/year. Students enrolled in private schools areassumed to receive an average annual subsidy of $40 per student to help raise the quality ofprivate schools (Appendix Table B).

The results of the scenarios indicate that achieving universal basic education willhave sizable budgetary implications. Even if the current public/private ratio of 60/40 ispreserved, this would imply that public enrollment increases from 4.5 million to 8.1 million.What is required to finance this expansion (which is desirable on both efficiency and equitygrounds) is a combination of significantly increased allocations to junior secondaryeducation, a decline in the funding of other education sub-sectors (such as senior secondaryor tertiary education) unless there is an increase in the overall education budget (ifsectoral allocations are to be preserved, especially with respect to primary education), andlarge funding from donors.

The estimates below indicate that under all scenarios a significant financing effortwill be required (Table 2). In addition, the difference in enrollments between the threescenarios point to a substantial increase in total public costs if the private sector ceases toplay the role it does today. More specifically, the total additional public funds that would berequired through year 2010 come to about: $7.6 billion in the public/private scenario; $1 1.1billion if the current level of private enrollment is maintained; and $14.5 billion under thepure public scenario (if the private sector is phased out except for religious schools).

Table 2Additional Public Funds ($m) Required to Achieve Universal JS Enrollment in 2010

Under Alternative Public/Private ScenariosScenario I Scenario II Scenario m

Public/Private Constant Private Private declines(60/40) (at 3 mn) (except religious

schools)Total add'l expenditurerequired for expansion 7,605 11,115 14,505Per annum 507 741 967

of which:Development 216 360 480Recurrent 211 352 469Scholarships 29 29 29Subsidies to Private Sch 51 0 -11

Memo:Additional students p.a. 240,000 400,000 533,000


How can the expansion be financed? Let us assume that the education budgetincreases annually by 6 percent, that is, as much as the historic growth rate of GDP. This willadd nearly $7.5 billion to the junior secondary education budget. Compared to the additionalpublic funds required for the expansion, this implies a shortfall of $543,000, $4 million and$7.4 million under the three scenarios (Table 3). The last two scenarios appear unattainable,but the (60/40) public/private scenario also has a caveat: it is heavily front loaded. Moreprecisely, additional funding comes to $1.2 billion in the first ten years though no additionalresources will be required thereafter when the system reaches relative maturity (after year2005 the percentage increases in public enrollments will be significantly less than 6 percentgrowth in the budget). The (60/40) public/private scenario though affordable at face value,will require additional funding of an average $120 million during the first ten years ofexpansion (and considerably more, as much as $150-$200 million in the first five years). Thebudgetary shortfall (in $ million) is shown graphically in Figure 3.

Table 3Budgetary Shortfall ($ mn) of Junior Secondary Expansion Under

Alternative Public/Private Scenarios (assuming 6% p.a. growth of budget)

Shortfall if expansion is

Public/Private Constant Private Private declinesYear (60/40) (3 mn) (except religious)1995 0 0 01996 -201 -357 -4901997 -192 -358 -5051998 -180 -358 -5181999 -165 -354 -5272000 -147 -347 -5342001 -126 -337 -5372002 -101 -324 -5372003 -73 -306 -5332004 -41 -285 -5252005 * -4 -260 -5142006 37 -231 -4972007 82 -196 -4762008 132 -157 -4512009 188 -113 -4202010 249 -63 -383

Total 1996-2010 -543 -4047 -7447Total 1996-2005 -1230 -3286 -5220* After year 2005, the percentage increases in public enrollments will besignificantly less than 6 percent growth in the budget.

Annex 1: Page9ofl8 61

Figur 3:Budget=r Shortll fOr Mpanon of J.mior Secondary under Alternative Publc/Pd

Scenadro (auaing 6% p.m. growth)11996-20101

20=

100

0191 1Q97 19NS 1900 2000 2001 200200 00 wa 2

-100 I

-200

.300 -

.500

-6000

Y.ar

| Privets sedor sham rmnasn at 40% - Prhte sedor rmsahau cur"et blv of enromrnt C3 mn)

-e_- P&MO sedordedgm to 0d* re us schoels (I fmn)

The three scenarios would require that the budgetary allocation to junior secondaryeducation increase from the current 13 percent of the education budget to approximately 16percent, 19 percent and 21 percent in the next few years (and in the case of the mainly publicscenario it will have to remain at more than 16 percent in the steady-state compared to thepublic/private scenario where the share stabilizes at 11 percent) (Table 4). These figuresamount respectively to increases of 23, 46 and 62 percent of the current allocation.

Table 4Share of Junior Secondary Budget as Proportion of Total Education Budget Under

Alternative Public/Private Scenarios (assuming 6% p.a. growth of budget)Year Public/Private Constant Private Private declines

(40/40) (3 mn) (except religious)l9Yc 13% 13% 13%1996 16% 19% 21%1997 16% 19% 21%1998 16% 18% 21%1999 15% 18% 21%2000 15% 18% 20%2001 15% 17% 20%2002 14% 17% 19%2003 14% 16% 19%2004 13% 16% 19%2005 13% 16% 18%2006 13% 15% 18%2007 12% 15% 17%2008 12% 14% 17%2009 11% 14% 16%2010 11% 13% 16%


The cost estimates presented above incorporate estimates of scholarships for poorstudents and subsidies paid to private schools. It is legitimate to plan for such publicexpenditure because alleviating supply constraints (e.g., building schools in rural areas) willnot alone remove demand constraints (that is, the opportunity cost of attending education).Assuming that the poorest 10 percent of the additional enrollment each year receives ascholarship of $)O, the total cost of the scheme over the 15 year period will come to anannual average of $29 million in all scenarios (increasing from $3.6 million in 1996 to $54million in 2C 0). In the public/private scenario, scholarships will amount to 6 percent of thetotal public cost of expansion (ranging from 1.4 percent in 1996 to 7 percent in 2010). On theother hand, the budgetary savings from phasing out private schlools and the subsidy theyreceive (assumed at $40/student) will be only $1.6 million/year. This saving is small (Ipercent of the additional funds) and can prove counterproductive as it will take place at theexpense of the current co-financing of junior secondary education between Government andfamilies.

What do these estimates imply for the total public budget allocated to educationrelative to GDP? Public expenditure on education is today approximately 2.7 percent ofGDP. To fund the expected expansion of junior secondary education this figure shouldincrease to approximately 3.0 percent and 3.2 percent under the 60/40 public/private and purepublic scenarios, respectively. These figures assume that allocations to other sectors increaseannually by 6 percent (GDP growth).

In conclusion, achieving universal enrollment in junior secondary is desirable on bothequity and efficiency grounds, but will require a sizable budgetary effort. The policy isattainable if the economy continues to grow at its historical rate, additional funds are madeavailable to junior secondary including external borrowing, and the private sector retains itsshare.

B. Fiscal Impact of the Project

Utilizing the results of the above scenarios and assuming the 60/40 public/privatecase as the "desirable" scenario, the fiscal impact of the project on the two provinces isestimated below. The estimates are based on the following assumptions: (i) the educationbudget in each province will increase at the national historical growth rate of GDP (6% perannum in real terms); and (ii) the share of the junior secondary education budget out of thetotal provincial education budget would also have to increase during the capital-intensivephase (as in the national scenario; see Table 4 above).

East Java: Based on the above assumptions, total project costs for East Java(including physical and price contingencies, and taxes) estimated at US$101.5 million, wouldaccount for about 6% of the East Java education budget, on average, during the project period(1996/97-2001/02). Incremental recurrent expenditures, which are negligible in the first twoyears of the project increase from US$0.2 million in 1998/99 to US$2.4 million in the lastyear of the project, and stabilize at US$3.1 million after the project is completed, representing1.0% of the education budget. Thus the long-term recurrent cost implications of the projectare small and manageable.

Annex 1: Page I I of 18 63

Table 5FISCAL IMPACT OF THE PROJECT ON EAST JAVA EDUCATION BUDGET

(assuming 6% p.a. real growth of budget)Prior toProject After95/96 96/97 97/98 98/99 99/00 00/01 01/02 Project($mn)

East Java Ed. 229.7 243.4 258.1 273.6 290.0 307.4 325.8 345.4Budget

Total Project Cost 1.4 20.8 23.9 25.6 23.0 3.1

Project IncrementalRecurrent Co. I / 0.0 0.0 0.2 0.8 1.6 2.4 3.1

Project Cost as shareof Educ.Budget (%) 0.6 8.0 8.7 8.8 7.5 0.9

Project Incr. Recur.Costs as share of 0.0 0.0 0.1 0.3 0.6 0.3 1.0Educ. Budget (%)

1/ Assuming unit recurrent cost of Rp. 204,000 (US$93) per student.

NTT: Based on the above assumptions, total project costs for NTT (includingphysical and price contingencies, and taxes) estimated at US$48.3 million, would account forabout 18% of the NTT education budget, on average, during the project period (1996/97-2001/02). Incremental recurrent expenditures, which are negligible in the first two years ofthe project increase from US$0.2 million in 1998/99 to US$1.9 million in the last year of theproject, and stabilize at US$2.5 million after the project is completed, representing 4.7% ofthe education budget. The recurrent cost implications of the project in NIT areapproximately (4 times) higher than thatfor East .Java. Given the much lower level of JSeducation enrollmerits in NTT compared to East Java, a higher level of resources (relative tocurrent regional budgetarY patterns) need to be directed to NTT to sustain the investment.


Table 6FISCAL IMPACT OF THE PROJECT ON NTT EDUCATION BUDGET

(assuming 6% p.a. real growth of budget)Prior to 97/98 98/99 99/00 00/01 01/02 AfterProject 96/97 Project95/96($mn)

NTT Ed. Budget 35.6 37.7 40.0 42.4 44.9 47.6 50.5 53.5

Total Project Cost 0.6 8.7 11.6 13.8 11.4 1.4

Project IncrementalRecurrent Costs 1/ 0.0 0.0 0.2 0.5 1.2 1.9 2.5

Project Cost asshare of Education 1.6 21.7 27.3 30.7 23.9 2.8Budget (%)

Project Incr. Rec.Costs as share of 0.0 0.0 0.5 1.1 2.5 3.8 4.7Ed. Bud. (%)1/ Assuming unit recurrent cost of Rp2O6,000 (US$94) per student.


III. NALYSIS OF ALTERNATIVES

A. Alternative Modes of Junior Secondary Education

GOI has available to it various alternatives to the regular (9 classroom) SMP school.These include: SMP Kecil (small schools of 3 classrooms), SMP Terbuka (open/distanceschool), and Paket B (non-formal education). An analysis of their unit costs and effectivenessis presented below. Two words of caution are in order, however: (i) the alternative programsare not perfect substitutes for each other or even to the regular SMP (see below); and (ii) theprograms are in an early stage of development, particularly the SMP Terbuka and areundergoing continuous revisions, hence their unit costs and outcomes are expected to changeover time. The analysis below, therefore, is preliminary and will be updated during the courseof the project.

Following is a characterization of the main advantages and disadvantages of eachprogram:

Program Advantages Disadvantages* Better learning environment. * Higher investment cost than for* More time-on-task in school. other options.* Preferred by community because * Often required students to walk

it represents regular schooling. long distances* Employs unprepared multi-

SMP Kecil subject teachers.* Might require student or teacher

accommodations* Is not free-of-charge (parents

have to pay for entrance fees,uniforms, exam fees, BP3, etc.)

* Free of charge. * Requires a regular SMP as a* More flexible time. basis (mother school).* At end of course, students take * Less time-on-task at school.

SMP Terbuka EBTANAS exam. * Students have to travel to mother* Uses regular teachers. school* All curriculum subjects are * Requires discipline of self-study.

taught.* Tutorials are held near student's

home.* Free of charge. * Is less accepted by community.* Reaches students who work * Students do not take final

(reduced opportunity costs). EBTANAS exam but a specific* Has modules of better quality one not comparable to NEM

than those of SMP Terbuka. scores.* Good access for females. * Requires self-study.

Paket B * On average, students walk only I * Tutors are very often notkm to tutorial center. teachers.

* Is more suitable for participants * Not all subjects are taught.not continuing formal schooling.


Following are estimates of unit costs of each alternative program:

Unit Cost Unit CostProgram (Rp. per student p.a.) (Rp. per student p.a.)

(with books/modules) (without books/modules)SMP Kecil 1/ 467,000 133,000SMP Terbuka 360,000 100,000Paket B 305,000 45,000

1/ including amortization of building

As mentioned above, the three alternatives are not perfect substitutes. SMP Terbukaneeds a 9-classroom regular SMP school within reasonable distance to function as a motherschool, providing subject matter teachers. Thus the program cannot be introduced in veryremote areas where regular SMPs are not available. Paket B is more flexible, but does notlead to an EBTANAS examination yet; thus it is not well accepted in all areas. An SMP kecil,always accepted despite some of the draw-backs in terms of teachers' quality, requires acapital investment (and subsequent maintenance and amortization). In addition, MOEC has tofind regular teachers willing to stay in remote areas.

LearningAchievement It is difficult at present to compare learning achievementbetween the three types of schooling. SMP Terbuka is a very recent program; NEM scoresexist for only one year, thus there is limited basis for analysis. Paket B has its ownexamination which does not produce any NEM scores; its examination scores are notcomparable with those of the other two programs. So far, only one comparative study oflearning achievements has been conducted.14 Students in the sample, subdivided into twogroups according to whether they had just entered the program (Group I) or they had attendedthe program for one year (Group II), were administered the same test, which gave thefollowing mean test results:

Program Group I Group IIPaket B 34.0 41.0Regular SMP 42.5 51.3SMP Terbuka 31.1 34.3

Students of SMP Terbuka scored the lowest grades. The study further calculates the "gainpoints average" for each alternative, which shows that the highest gain was obtained by theregular SMP, followed by Paket B and SMP Terbuka.

The above mentioned study represents one case study and should not be considered asconclusive. As the three alternative programs are further developed under the project (andother projects such as the Non-formal Education Project), they will be monitored andoutcomes measured in order to produce more conclusive conclusions.

14 "Study of Cost-effectiveness, Relevant and Sustainable Models of Paket B Program Implementation", DirectorateGeneral of Out-of-School Education, Youths and Sports, MOEC, 1995.


B. Public versus Private Provision of Junior Secondary Education

A second analysis of alternatives is that covered under Section 11 on the role of theprivate sector. The earlier discussion highlighted the budgetary implications of the expansionprogram if the role of the private sector declines. There are additional merits to preserving theprivate sector. First, given the current and projected surplus of teachers, a robust privatesector is an effective means for helping to clear the market for teachers. Second, madrasahschools (religious schools which currently enroll about 20% of junior secondary students)offer access to junior secondary in small, poor communities and at a cost that is significantlylower than even MOEC-supervised private schools. These schools also enroll a higherproportion of girls than boys, reflecting the preference pattern of some families for non-conventional education. Third, maintaining the share of private schools at the juniorsecondary level establishes the basis for sustaining the even larger share of private schools atthe senior secondary level (54% of enrollments in 1993/94).


IV. COST-BENEFIT ANALYSIS

The economic rate of return for the project investment is estimated byprovince and component (increasing access and enhancing quality, but excluding themanagement component). The estimates are obtained by solving for the internal rate of returnthat equates a stream of benefits and costs resulting from the investment over a thirty yearhorizon.

Table I presents the rates of return for the two project provinces by component.Overall returns for the two provinces are high and those to quality enhancements are higherthan for expansion of access, particularly in the case of NTT.

Table 1Rates of Return to Project Investments by Component and Province

Component East Java NTTAccess 16.3 14.0fQuality 21.8 22.0Total 18.3 16.0

The remainder of the section explains how the estimates were made and provides anindication of the sensitivity of the estimates to some of the underlying assumptions.

A. Benefits

Increasing Access. The project investments are expected to lead to an increase inthe number of students enrolled in and graduating from junior secondary in any given year.Most junior secondary graduates, however, do not stop at this level: nationally about 84percent proceed to senior secondary and another 30 percent proceed to tertiary. Thus, thestream of output resulting from the project investments is modeled as a function of thefollowing five levels of outflows:

1. Junior secondary graduates;2. Junior secondary graduates who proceed to senior secondary and then drop out;3. Junior secondary graduates who succeed in graduating from senior secondary;4. Senior secondary graduates who proceed to university and then drop out; and5. University graduates.

The total number of the above outflow over a thirty year period amounts toapproximately 945,000 beneficiaries (Table 2).15 The benefits of each of the beneficiaries areestimated as the difference in wages between one level of education and the next. Noadditional wage premiums are assumed to accrue to dropouts (they earn the same wage as

15 These outflows assume that there will not be a capacity constraint at the senior secondary and higher educationlevels. Give the rapid growth of the private sector at these levels in the past decade, this assumption is notunreasonable to make (coupled with some additional public investment).

Annex 1: Page l7 of 18 69

that of the education level they drop from). Provincial data on wages, drop out rates (bygrade), and transition rates are utilized in the estimation of outflows and benefits.'6

Table 2Beneficiaries of Project Investments (stream over 30 years)

(million)Component East Java NTT Total ProjectAccess 0.69 0.26 0.95Quality 3.34 0.91 4.25Total 4.03 1.17 5.20

Enhancing Quality. Investments to enhance quality will extend to (a highproportion of) existing students as well as the new students generated by the project. Over thethirty years of the calculation, the total number of quality beneficiaries amount toapproximately 4.3 million. We assume that a 15 percent additional wage premium can beearned by higher quality graduates (equivalent to about an extra $1.5-2.5 per month,depending upon provincial wages).

B. Costs

Investment costs are divided into those related to increasing access and those whichenhance quality, for each of the four provinces. They are spread over six years, with verylittle investment in the first year of the project, followed by several years of heavy capitaloutlays and tapering off in the sixth year. A provincial average annual per student recurrentcost is imposed throughout the project and subsequently for the remaining twenty-five years(amounting to about $100). Similarly, annual recurrent costs for senior secondary anduniversity education are added to total costs since a significant portion of the benefits accrueas a result of junior secondary students proceeding up the system. On the quality side, anincremert of $8 is assumed to represent the recurrent cost of additional qualityimprovemients. No quality enhancements are factored for senior secondary and tertiary.

16 In cases wbere provincial wage rates are not reliable, national wages were used as an approximation.


C. Sensitivity to Assumptions

Simulations were run varying some of the underlying assumptions. Following areresults for several simulations:

Change New rate of return (base case; Table 1)

Only a 10% increase in additional wagepremium for higher quality graduates:East Java 12.4% (16.7%)NTT 17.3% (21.8%)

JS/Primary wage differential increases by20%:East Java 17.1% (16.3%)NTT 14.7% (14.0%)

SS/JS wage differential increases by 20%:East Java 17.6% (16.3%)NTT 15.4% (14.0%)

Increase in JS recurrent costs by 30%:East Java 14.9% (16.3%)NTT 12.9% (14.0%)

Incremental recurrent costs for qualityimprovement increase from $8/student to$1 0/student:East Java 20.6% (21.8%)NTT 20.6% (22.0%)

In all, the main variables to which the system appears to be most sensitive are thoseaffecting quality. This is not surprising given the large numbers of beneficiaries which areimpacted by this investment.


INDONESIAEast Java and NTT Junior Secondary Education Project

GENERAL PROFILE OF EAST JAVA

General Background. East Java, with 32 million inhabitants, stands today at the forefront ofmodem Indonesia, its economy spurred by rising industrialization and modernizing agriculture, ablend not unlike that which occurred in Korea duruig the 1960s. East Java ranks alongside theChao Ph_ ya Delta of Thailand, the Mekong Delta of Vietnam, and the Irrawaddy Delta ofBurma as one of the biggest and most fertile agricultural hinterlands of South-East Asia.Surabaya, the province capital and the second largest city in the country, has become the leadingeconomic pole around which the Eastern half of Indonesia gravitates.

In the 1960s East Java was considered a backward region with little economic potential,as its oilfield was depleted, it had no timber or mineral resources to attract foreign investment,and its road infrastructures was in complete disrepair. It had, however, a provincialadministration which had maintained a high degree of professionalism, and was headed by avery charismatic civilian leader, Governor Noer. The province thus made the best of the riceintensification program launched in 1967, of the family planning program started in 1968, and ofthe Village Development Grant Scheme (Inpres Desa Tertinggal --IDT-- "Presidential Programfor Left-behind Villages") introduced in 1969. Thanks to big increases in government spendingin the 1970s, and then to its own dynamism, East Java's economy has been growing steadilysince, at rates above the national average.

Th, province's overall picture of prosperity, however, contrasts sharply with therelatively hi- lievels of poverty still found in East Java -- 22 percent of the population livesunder the poverty level (20 percent nationally), and the illiteracy rate for people 10-year old andabove is 23 percent in East Java, as compared to 16 percent nationwide. Sixteen out of 37districts have more than 25 percent of their villages targeted by the IDT program, a 1994Presidential initiative providing special assistance to the poorest communities of the country.

Physical Environment East Java has a tropical climate, with six months of 'dry' season(meaning less than 60 millimeters of monthly precipitation), annual rainfall of more than 2,000millimeters, and constantly warm weather (except at higher altitudes). The province is transectedfrom East to West by a spine of volcanic mountains with peaks sometimes exceeding 3,000meters, which feed three main river basins: the Bengawan Solo basin in the north-west, theBrantas basin running south-west to north-east in the middle of the province and ending inSurabaya, and the Pekalen-Sampean basin at the eastern end of the province. These lowlandareas constitute the primary areas of intensive irrigated cultivation, with 1,000 kilometers ofprimary canals and 10,000 kilometers of drainage canals irrigating about a million hectares.

The highlands represent 14 percent of the total area of East Java, and were not settledbefore the mid-nineteenth century, when population pressure in the lowlands and coffeecultivation made them attractive. The highlands derive specific environmental importance fromtheirhydrological role. The cultivation of increasingly steeper slopes, brought out by a growingdemographic pressure in the last two decades, has translated into a greater hydrologicalinstability, and more frequent destructive flash floods in the lowlands.


The south-west (Pacitan, Ponorogo, Trenggalek and Tulungagung) and northwest coast(Bojonegoro and Tuban) Kabupatens, as well as the drought-prone Madura Island, arecharacterized by low limestone hills. These are the poorest areas in the province, whoseeconomic activity is limited to rain-fed cultivation without any real prospect for industrialization.People have been moving out of these areas in search of employment throughout this century.

History Until the 14th century the island of Java was dominated by a series of Hindu-Buddhistkingdoms, which lasted well into the Dutch occupation. The most successful of them, ruled bythe Majapahit dynasty, established in the 14th century an empire which, for the time of about ageneration, dominated from its base in East Java most of the territory of modem Indonesia. Theislamization of Java, first carried out by Arab traders from the 8th century on, and then moreforcefully by Melaka rulers in the l 5th century, was gradual, and proceeded apace during theEuropean intervention in the region.

To insure the security of its trade the United East India Company (VOC) graduallybecame involved in the Javanese kingdoms' court politics and wars. In the 19th century theDutch government took control and turned Java into a fully colonial society, but not until afterthe Java War of 1825-30, a fierce guerrilla conflict which killed an estimated 200,000 people.Starting in 1830 the Dutch government put in place the Cultivation System, which forcedJavanese farmers to grow export crops. From the 1 870s on, government monopolies wereprogressively replaced by free trade and the development of plantations. During the last half-century of colonial rule, which ended with the Japanese occupation, the Dutch plantations of EastJava used to produce 2/3rd of the colony's sugar, nearly all its coffee, and large quantities ofhigh-quality cigar tobacco.

Culture. Contrary to many other provinces, East Java has an ethnically highly homogeneouspopulation, with only a small but economically active Chinese minority standing apart from theJavanese plurality. Ninety five percent of the population counts itself as Muslim.

If many Javanese express pride at the achievements of the court of Surakarta andYogyakarta, most tend not to identify with this elite tradition, nor with a specific lineage or clanas is customary in many regions of Indonesia, but rather with their own villages. These villagesare subdivided into smaller neighborhood associations -rukun tetangga- the Javanese word rukundescribing, according to anthropologist Robert Jay, both a "state of being and a mode of action ...a state in which all parties are at least overtly at peace with one another"; "[it is] a process ofsharing through collective action." These neighborhoods gather for rituals, organize sports teamsand youth groups, or set up rotating credit associations, and sometimes collaborate on harvestingrice.

The Javanese language is characterized by its complex rules of etiquette. Whenaddressing someone, Javanese speakers must choose from several different levels of politenessIn general, a person uses the highest level to speak to high-status people in formal situations andthe lowestlevels to speak to people of lower rank or with whom one is most intimate. Children learn tospeak the lowest level first, but are soon taught to address their father respectfully, using refinedspeech, and failure to do so will result in a sharp reprimand. Fro Javanese, learning the properdegree of shame is a matter of becoming aware of one's vulnerability in interaction.


Population. East Java, like the rest of Java island, is densely populated, with 678 persons persquare kilometer, and population has been growing at a steady but declining pace: 1.6 percentfrom 1961 to 1971, but 0.8 percent for the period 1985-90. This abatement of demographicgrowth is the result of a voluntarist family planning program started in the early 1970s (thisnational program has been more particularly successful in East Java). Cities have beenexpanding rapidly in the last two decades, growing annually by 4.5 percent between 1980 and1990, a.nd as a result the province's urbanization rate reached 27.5 percent in 1990. Still, someareas ot the province remain extremely rural, and half of the 37 districts do not exceed a 19percent urbanization rate.

East Java's high population density creates tremendous pressure on the land, pushing thepoorest farmers and the young to migrate to the cities, or to relocate on other islands through themassive Transmigration Program (between 1971 and 1980, the outmigration rate grew from 2.94to 5.47 percent). Studies of migration patterns within the province have shown that mostmigrants (almost equallyv male and female) first moved between ages 15 and 34, when stillsingle, leaving a rural area for an urban center where they predominantly took jobs in theinformal sector. Migrants (inter and intra-provincial) are usually better educated: In 1985, amongintra-provincial migrants aged 20 and over, half the males and a third of the females hadcompleted junior secondary school, a completion rate three times higher than the average for thetotal population. Also, migrants to the industrial region were better educated than migrants toother regions, with 42 percent of males and 23 percent of females having had a senior secondaryeducation..

Economic Activity. The two major stimulants to East Java's development since the 1960s havebeen the Green Revolution in rice production, which has nearly trebled since 1968, and thegrowth of the manufacturing industry, particularly in the late 1980s. But the expansion of theconstruction and transport sectors, as well as commercial and financial activities more generally,have been complementary to those achievements and have provided vastly more employment.

The regional economiiy experienced a structural shift during the 1970s and 1980s: theshare of agriculture in the economy declined from 50 percent in 1970 to less than 25 percent in1987 (and agriculture's share of employment went down from 56 percent in 1987 to 43 percent in1994), the industrial sector increased from 14 to 25 percent, with the central core regionbecoming a center of manufacturing industry growth. (Most of the industrial activity is locatedin a corridor that developed along the highways joining Gresik, Sidoarjo, Mojokerto, Pasuruanand Malang to Surabaya.) Services also grew from 36 to 50 percent. While all sectors grewbetween 1983 and 1987, the largest growth rate was in manufacturing (7 percent) and services (6pz, cent).

Today East Java boasts the second largest industrial base of the country in terms ofemployment and establishments, and contributes about 22 percent of the national value added bymanufacturing. It is the only province which has achieved impressive growth rates and relativelyhigher per capita incomes without the advantage of substantial natural resources (oil, timber) orspecial stimuli like tourist dollars or a massive influx of external capital. The two most importantmanufacturing activities are the industry of kretek (clove cigaretes) and sugar milling, with kretekrepresenting in 1985 more than 60 percent of the total value added of the 12 major industries(which also included weaving, yarn, machinery, metal structure products, fertilizer, cosmetic andperfume, cement, coconut oil, milk products and beer).


Education and Small Villages. Up until the early 1970s, the rapid economicdevelopment of Java Timur seemed to be all but a foregone conclusion, and socio-economicindicators depicted a rather backward region. Accordingly, education in rural areas usually didnot exceed a few years of primary school for the children of the wealthiest families. Sending achild off to a distant secondary school did not appear to parents as an appealing option. Overall,the village and its traditional culture were still the main frame of reference for poor as well asrich families, and links with the world at large were often only tenuous.

Starting in the 1970s, several factors went into play which disrupted the self-centerednessof the villages: the improvement of the road systems, which had been the top priority of theprovincial administration since the mid-1960s; the introduction of new rice varieties, whichdoubled yields in the course of 15 years, and helped farmers shift from self-subsistence to marketagriculture; the booming national oil income, which percolated down to the districts through aprogram of primary schools construction.

The social treatment of television sets, which started to make their way in the villages inthe mid to late 1970s, presents an exemplary illustration of the transformation of village lifeunder these new economic conditions. Color television sets, which retailed for about $300-500,were initially publicly displayed on the verandas of the richest families, allowing the wholeneighborhood to enjoy it. The TV set was still treated as some form of public good, very muchin the tradition of the slametan festivals, which acted as a form of wealth redistribution schemewithin the community.

This attitude, however, quickly evolved, as the wealthiest families started to perceivethemselves less and less as a part of the village community, and more and more as part of thelarger national community. As a result, TV sets gradually retreated within the private sphere ofhome, progressively shielded by windows and curtains. And it was for education as it was forTV: children were increasingly sent off to secondary school, and some to college, as links withthe world at large were perceived as more and more desirable economically and socially.Progressively the village ceased to be the central reference for the local elite.

For the small farmers and the poor however, the village and its traditional values haveremained the central locus and focus of life, a fact which sometimes translates into the expressionof a distrust of the modem ways adopted by the elit. The actual impact of this attitude uponeducation demand however is difficult to evaluate, and could not easily be separated from thesheer financial burden of education, which for the poor remain a considerable obstacle.


GENERAL PROFILE OF NUSA TENGGARA TIMUR

Nusa Tenggara Timur is at the exact opposite pole from East Java on the scale of socialand economic development. NTT has the lowest RGDP per capita (about 40 percent of nationalper capita GDP) of all 27 provinces, and its rate of economic growth from 1983 to 1991 was 5.2percent, as compared to an average growth rate of 6.6 percent for Indonesia, and 7.4 percent forJava. Social indicators are below average: 24 percent of the population live under the povertyline (as compared to 15 percent nationally), and 69 percent of the population has monthly levelsof expenditures below Rp 20,000 (45 percent nationally); incidence of moderate and severeprotein energy malnutrition is about 16 percent in rural areas. One fifth of NTT villages arelisted as IDT villages.

The 1990 census counted 3.3 million inhabitants in NTT, unevenly distributed amongthe islands, and mostly rural (89 percent). Ethnically and linguistically, NTT population isextremely fragmented, with varying social and political traditions. This diversity however isstarting to be slowly erased by the systematic use of Bahasa Indonesia in schools, thedevelopment of national communication technologies and infrastructures, the increasingmarketisation of the economy, and Government's strong promotion of the Pancasila ideology.

There are only a few disparities in economic achievement between the differentKaoupaten, with Kupang (*)standing out as an island of relative prosperity in the province (seetable). Most of the economic activity in Kupang is concentrated in the tertiary sector (72 percentin 1991), as the city is the administrative capital of the province.

Shares of Regional Gross Domestic Product Between Kabupaten, 1991Kabupaten RGDP share Population Land share

(1991) share (1990)West Sumba 7.6 8.9 8.6East Sumba* 5.6 4.7 14.8Kupang* 24.6 16.0 15.5South Central Timor 7.7 10.7 8.3North Central Timor 4.3 5.0 5.6Belu 5.7 6.6 5.2Alor* 4.8 4.4 6.0East Flores 6.6 8.1 6.5Sikka 7.4 7.6 3.7Ende* 7.1 6.7 4.3Ngada 5.6 6.1 6.4Manggarai 13.0 15.3 15.0Total 100.0 100.0 100.0Source: Kantor Statistik, NIT 1989;1993, p. 440* Indicates a RGDP share higher than the population share

Physical environment. NTT is comprised of the four main islands of Sumba, Flores, Timor andAlor, 38 smaller inhabited islands, and 524 uninhabited islands. Communication is therefore akey constraint, for the people living on the smaller islands as well as for those living on the main


'lands, where many villages are still not connected by all-weather roads to the provincial andKabupaten road network.

The islands are mostly mountainous, with only a third of the total land area suitable foragriculture, and the soils, which are in general volcanic or coralline, are prone to drought duringthe dry season. The province is prone to volcanic and seismic activity, the latest manifestation ofwhich being the disastrous 1992 earthquake in Flores. With a semi-arid climate mostlyinfluenced by the Australian system, the islands have a 8 to 9 month-long dry season, andexperience very uneven (from 800 to 3,000 mm per year according to location) and variablerainfall. As a consequence, there is a general lack of close, reliable water supply, which forceswomen and children to haul the water from distant sources.

Only 16 percent of the land area is cultivated, mainly through upland and shiftingcultivation (irrigation is possible on less than 10 percent of the cultivable land). The growingdemographic pressure, the use of slash and bum agriculture, and overgrazing are resulting in theprogressive degradation of land.

History. NTT sits at the boundary of two major etbno-cultural realms: the Malay and theMelanesian worlds, which intermingled in that region before the European intervention startingfrom the 15th century (first Portuguese, then Dutch troops and settlers). There has been also asomewhai marginal Arab influence, through the localized presence of Arab traders as early as the12th century. As a result, NTT's population is extremely heterogeneous, with, for instance,Flores' population comprising 5 major ethno-linguistic groups, and Alor's counting up to 40separate ethno-linguistic groups.

Thanks in part to its poor natural endowment, NTT has long stood on the sidelines of thecolonial history of the region. When in the early 17th century the Dutch ships of the VOC(United East India Company) started to sail the Indian Ocean, they concentrated most of theirplundering efforts on the Mollucas and the Greater Sunda Islands (Java, Kalimantan, Sumatra).Except for some trading outposts (in particular for sandalwood and slaves), they largely ignoredthe islands of Sumba, Flores and Timor, part of what was then called the Lesser Sunda Islands.In the mid-nineteen century, however, the Dutch extended and strengthened their control onto theEastem islands, a move which aimed at checking the expansion of the British empire from itsbase in the Malay peninsula.

A wave of religious prozelitism followed in the wake of the Dutch administrators, withjesuit and Lutheran missionaries competing in the construction of missions, hospitals and schoolsthroughout the islands. Unlike in Java, Sumatra or Bali, they did not encounter the resistance ofalready strongly established religious systems (Islam or Hinduism), but rather a wide variety ofanimistic beliefs. Today the population of NTT is in its great majority catholic or Protestant.Islam only represents a minority (about 9 percent of the population) to be found mostly in citieslike Kupang.

However, the colonial and world religions' influence constituted only a thin veneer,under which the traditional culture and social and political organizations have long persisted. Inthe islands the indigenous feudal princedoms, the traditional class hierarchies and rules ofbehavior (adat), and age-old magico-religious practices still largely inform social life. Thesetraditional structures sometimes coincide with more modern forms of organization, and it is not


uncommon to find the heir of a royal family in the official role of Bupati (administrative chief ofthe district), and drawing a great deal of his local legitimacy from his lineage.

In modern times, because of the policy of national integration, there has been a fairlyimportant Javanese influence, both through the posting of Javanese in most governmentalpositions, and through the education system and the media. Most of inmigrants to NTT today arefrom Javanese origin (with 40.4 percent of 1990 46,310 inmigrants coming from Java).

Demography. With 3.3 million in the 1990 census, NTT represents less than 2 percent ofIndonesia's total population. Its rate of population growth -1.78 percent for 1980-90- is lowerthan most other regions and than the national average of 1.96 percent. However, NTT fertilityrate is higher than average with 4.5 children per woman (3 on national average), but this is morethan offset by a higher infant mortality rate (77 against 71 at the national level) and a strongoutmigration. Life expectancy has improved considerably since 1970, going from 44.4 to 58.6years in 1990 (only one year less than tile national average). NTT's average family size is alsolarger -5.3 in 1990- than nationally (4.5).

Outmigration, both to other provinces or to other countries, is the main factor alleviatingpopulation pressure. Outmigration towards other provinces has increased sharply in the lastdecade, going from 47,534 in 1980 to 99,442 in 1990. When evened with inmigration, whichhas only slightly grown during that decade, the overall migration balance is negative, andrepresented 1.62 percent of total population in 1990. The main destinations for outmigration areEast Timor, East Java and Jakarta.

International outmigration is not well documented, as most of it occurs outside the legalchannels, which people use to avoid the government's migration fee and the bureaucratic redtape. One of the main destinations for outmigration is Sabah, where according to a conservativeestimate around 100,000 people from NTT have migrated. This outmigration is to some extentreflected in demographic statistics, with the 1990 census counting 78 males for 100 females inEast Flores. There is indeed a long tradition of migration from Flores to Sabah, dating back fromthe Japanese retreat at the end of World War II, when the imperial army took to Borneo cooliesforcefully drafted from Flores.

Economic activity. Agriculture is the main activity, representing about 36 percent of RGDP(national average is 20 percent), and employing more than 80 percent of the work force. About90 percent of farm families cultivate rice or secondary crops, and the wealthiest 40 percent keeplivestock, which is the most significant status symbol in NTT. Cattle is used to some extent forfarm work but mostly as a vector for savings.

Manufacturing is almost negligible, and represented only 2.0 percent of NTT's GDP in1991. Government is the second most important sector of employment, and has on its payrolls7.5percent of NTT labor force (by comparison, at the national level government employees accountfor 5 percent of the total labor force).

Tourism is the growth industry of NTT, and has enjoyed an explosion in recent years,most of it concentrated in Flores. The number of tourists coming to the islands grew from10,085 in 1985 (4,075 foreign and 6,010 domestic) to 52,060 in 1989 (18,531 foreign), and


187,509 in 1991 (82,806 foreign). The destinations of choice are four Kabupaten of Flores(Manggarai, Ende, East Flores, Sikka), and Kupang.

Education. Thanks to its tradition of Christian education, the illiteracy level in NTT is not ashigh as in Indonesian regions with a similar economic background. NTT's illiteracy rate is 21.9percent, to be compared with 16 percent at the national level, but 54.9 percent in East Timor and31.3 percent in Iran Jaya. Illiteracy is mostly concentrated in the older age groups, and genderdifferences, which used to be prevalent, have all but disappeared in the younger generations. Thegeneral level of education of the population aged 15 and over has substantially improved since1971 (the number of males with no schooling went down from 38.2 percent in 1971 to 18.1percent in 1990), but the lag with the rest of Indonesia has remained the same (with a differentialof 5.9 percentage points).

It must be noted that education carries a great deal of social prestige in NTT, and parentsdo not hesitate to sell their cattle and go into debt to finance the education of their children.Indeed, in the last decade the level of education of one's children has become a sign of socialprominence at least as important as the possession of cattle, and well diplomed children willallow one into the community's innermost circle.


STRUCTURE OF THE EDUCATION SYSTEM

[ Prasekolah | Pendidikan Dasar Pendid;' an Menengah Pendidikan TinggiPre-school Basic Education Secondary Education Higher Education

Program SarjanaI I I ~~~~~~~~~~~~~~~~~~~~~~~~~Nonkependidikan (SA)

11 Sekolah Menengah Umum, Diploma Non-Teaching Program

General SSS Pr 2

:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ r Po ggramHarj'a n[ 2 : 3 i Kependidikan (SI) Diploma Teaching Progran 3

SLTP Umum 2 3 4General JSS I rSMK 3 thoranipoa pn kan (13)

3 Yr Vocational SSS I DiplomaTeachingProgram

Sekilah Dasar 1 E { - JPrimary School {1L '

I ~~~~~~~~~~~~~~~~~~~~~~~~~~~Program Diploma Kependidikan (D2)SLTP Kejuruan I 2 Yr Diploma Teacher Training Program

I I 4 Yr Vocational SSS I

Kindergarten Ia BB3Madrasah Ibtidaiyan (MI) Madrasah Tsanawiyahl I

_ _ 2 I_ Islamic Primary School (MTs) I Madrasah Aliyah (MA) I Program Sarjana Agama [slamIslamic 1SS Islamic SSS I Islamic Graduate Program

III I

E g J l'EJEJ E 4 In I En IH I R H

Annex 3: Page 2 of280

PYRAMID OF EDUCATION - YEAR 1993/1994Official School Age

Tkt/Grade ___________ 22

HE 3th Yr 1 FHE 2nd'Yr 20

HE I st Yr 19

. .. . _~~~~.... ....SSS Grade III __ _ __ _ ______________________________________-- 18

SSS Grade 17

JSS~~ - -; Grade: IIiX-.] __________________________ _ 13

JSS Grade I 13

PSS Grade III 15

PSS Grade 10 _ g : g g q g; :: g:-;-iq ;-:g;::g gy-il;:;; ;f :i:::;E ;:::;

PSS Grade 9lS g g:-0-g--0g0tgf:g::i:g::g! E:-i!:;:!g -gg0;;;::-!:g; ;:gXg

JSS Grade I__ _1

Z tudent enrolment School-age Pop n .. ..

JSS G rade 11g:0;:g- .................... : 13;::g:i::g;-:-;:: g :g ::g:-;; : f:g| : :::i:E:¢ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~... .........- . .. : :i: :i::: l[ : : ... .... ...: . .. :::-:i

s ! w t-!~~~~~~~~~~~~~~~~~~~~. . . . . .. . . .. . . . . .. . . . . .. .... . ... . . .. . .. --7.. , .. . .......,.. ;,!:, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~. .... .... ....t:i E:;i.l-Xji: ;EtSEAt: -:::E:t- ::Et020t :i- ';:11--:E -;Ci:!: - - -P S G ra e 11 t g g ;; ; ;- :il;:$fi: l; :0:: ;g; q::;::!!;; :g0:;! ;0:0g0:ig;-0:;g::-:::::: :. .... .:: . .... ... .. .. .... ........ ... g:; ;0; ~ ~ ~ ~~~~~~.. ..... .. X .... .... .- . .:!:- ....i- .......:;; . -:|0::- !|0 :; t t00::0 -:iP S G ade I X : ;::itE::E-:000007000000 ::-0044:;t:Xt-:-........... .. ....... .... ... .... . .. .- .....::f:i:0W:gi0Pi000 :0ERE ~ ~ ~ ~ ~ ~ ~~. .... .: . .... ...

_ _E~~~~~~~~~~~...... .: .... .... ...... .... .i :. : : :: :::::::EE:::E::i : : : EK indergarten _ - : : g : ::!j: tA::::::EA:::j! -! tA::! g:4 j: E ::!:AV4!l l :E- ............. .... ......... ................. 16

1111111111111111111111111111111111111111..1.. .. 1 .....JSS( Grade 150 .... .0 .. ... 00 50 200 20Ribuan~~~~~~~~~.. ... .....ands

Ir ~ ~ ~ ~ ~ ~~~. ... .. ...... .....ePS Grade VI ....... dent .nom n . School-age .Population...

Annex 4: Page I of 5 81


BASIC EDUCATION DATA

Basic Indicators for Junior Secondary Public SchoolsPupils/ Classrooms Class/ Pupils/ Pupils/School /School Classroom Class Teacher

East Java 574 13.8 1.3 42 21NTT 343 9.6 1.2 36 17Indonesia 476 11.9 1.2 40 20

Basic 11 licators for Junior Secondary Private SchoolsPupils/ Classrooms Class! Pupils/ Pupils/School /School Classroom Class Teacher

East Java 194 5.0 1.1 39 28NTT 125 4.3 0.8 29 16Indonesia 188 5.1 1.0 37 27

Basic Indicators for Junior Secondary SchoolsPupils/ Classrooms Class/ Pupils/ Pupils/School /School Classroom Class Teacher

EastJava 186 7.0 1.1 26.7 14NTT 185 5.9 1.0 31.1 16Indonesia 194 7.4 1.2 26.4 15

,moss Enrollment Rates in Junior Secondary Schools in NTT1.4 -___________ ~ ~ n___ _ . .. _________________________________

1.2 -

0.8 -

0.6 C

0.4 _______.

CD

0.2 -___

0

0) -~~~~~ (U ~ ~ ~ ~ - C~U) CU C

CU cm E(U

rz 0~~~~~~~~~~~~z 0

E

Districts

0CD 0 0o

Surabaya 1MalangC

Madiun

Kediri

Mojokerto . I

Blitar .

Pasuruhan IProbolinggo G)

Gresik *cO

Sidoarjo c o

Mojokerto

Jombang _ 0

Bojonegoro

Tuban

Lamongan

Madiun . I

° Ngawi ._

Magetan

X Ponorogo C-

Pacitan

a) Kediri _ l

0; Nganjuk _ 0

Blitar _ O

Tulungagung _

Trenggalek

Malang |

0Pasuruan 0 Probolinggo . !

Lumajang

Bondowoso _

Situbondo -C-

Jember tABanyuwangi t|Pamekasan

Sampang

Sumenep

Bangkalan

Jawa Timur

f85 Jo £ aSe 4 xauu\V

Jr. Secondary Gross Enrollment Rates by Gender in Urban Areas

120.00% -

100.00%

_~~~~~~~~~~~~~~~~~~~~~~~~~~~~.. .... . .

80.00% _ .. _ . _... :: I-

l W : f i :~~~~~.. ..-.: :f! ..: .. ! ..: .. .. ::E : : : ::::T

. ..... 1|0 | :S:E:E:::::;f:: ;:;:::: |13Male

60.00% - U Female x.......... ....... 111111 i::::::t:: ::: :I :::OTotal

40.00% -

20.00% ____

0.00%Jawa Timur (east) Nusa Tenggara Timur (east) Indonesia

Jr. Secondary Gross Enrollment Rates by Gender in Rural Areas

120.00%

100.00%

80.00%

Male x

60.00% - . Female .tOTotal

CD

40.00%

20.00%-

0.00% IJawa Timur (east) Nusa Tenggara Timur (east) Indonesia

xJ

86 Annex 5: Page I of 4


TEACHER TRAINING

A. Background

The teacher development programs in Indonesia, through their twenty years of history,have succeeded in developing an extensive group of secondary school teachers into teacher trainersboth at the provincial and district levels, respectively the instructors, who run the PermantapanKerja Guru or PKG Model C program, and guru inti, who run the Musywara Guru Mata orMGMP program, who constitute an invaluable human resource for quality improvement activities.However, in spite of this achievement, evidence of improved pedagogy in the classroom is hard tofind outside the most favored schools in large urban centers. It can be said that Indonesian juniorsecondary education teachers deliver a body of planned curriculum content, but pay insufficientattention to what and how pupils are learning. Thus, in order to improve teachers' classroomefficiency, changes in teacher training are suggested in three areas: curriculum content, deliverymechanisms and training program management, which are outlined in the following sections C &D. The recommendations for the reform of the teacher training component of the project (contentand delivery) are based on the findings of the JGF-sponsored report 'Secondary Education inIndonesia: Strengthening Teacher Competency and Student Leaming" produced in the context ofthe project's preparation, and available in the files (Annex 27)

B. Project Activities

The teacher training component of the project would consist of two distinct types ofactivity: first, reforming the content of existing teacher training programs and, second, providingsupport for the reformed delivery of teacher training (for about 18,700 teachers in East Java, andabout 4,100 teachers in NTT). A detailed implementation plan would be prepared and included inthe Project Implementation Handbook to be produced at the onset of the project and distributed tothe PPIUs and CPCU as well as to concemed administrative officers.

C. Training Program Reform

The content of all in-servicing activities are expected to be revitalized, and as a result,future programs would pay much more attention to promoting student leaming than they do atpresent. Emphasis would be given to the development of effective presenting, explaining,questioning and probing techniques, so that teachers become skilled in identifying students'leaming strategies and difficulties. Teachers would leam to construct open-ended formative testsfor use in the classroom, and to use the results to improve learning.

Preparing the first draft of this new training program would be the responsibility of theDevelopment Team for the relevant subject. They would work in collaboration with national andintemational consultants.

The Development Teams and the consultants would also be responsible for devisingsuitable tests for monitoring pupils' learning during the course of the project. The majority of the


test questions should test higher-order learning skills rather than simple recall, and should be inopen-ended format. Models from best current international practices would be used as a guide indevising these tests.

National consultants would be drawn from teacher training (IKIPs and FKIPs) and similarinstitutions. They would be required to have had recent and relevant experience in Indonesianschools, involving the application of effective subject-specific pedagogical methods. Internationalconsultants--with working knowledge of Bahasa Indonesia--would likewise be specialists insubject-specific pedagogy, with recent and relevant school-based expedience.

During the first year, consultants and instructors would monitor the implementation of thenew programs. At the end of the year, the programs would be evaluated, and revised in the light ofimplementation experience.

D. Teacher Training Delivery and Management

Training would be delivered through two modes: provincial-level programs for the isolatedschools (PKG Model C), which would have the priority under the project, and cluster-levelprograms for the more accessible schools in rural and urban areas (MGMP).

In both programs, the most important change would be the establishment of a regularschedule of school visits that would replace on-service training. The purpose of these visits wouldbe not only to provide professional guidance to teachers, but also to monitor their performance.All teachers - not just those involved in in-service activities - would be observed.

a) PKG Model C

TIhe PKG Model C would address the needs of the isolated schools, and would be managedby the province. Two major innovations are proposed: a full year program and systematic schoolVisits.

Duration. The training program for each batch of teachers should run for a full year.There would be three in-service training sessions instead of the current two, to ensure that subjectcontent for the full teaching year is covered.

School visits. Three visits should be made to participating schools each year (where this isfeasible and cost effective). Instructors would visit schools in teams of two, one to observe lessonsin mathematics and science, the other, lessons in Bahasa Indonesia, English, and geography.Instructors should observe lessons by all teachers in the school, rather than just those currentlyengaged in the training program for schools in more difficult areas. Head teachers of the schoolswould be given training as part of the in-service training network to provide systematic pedagogicalsupport (technical supervision) to teachers in their schools.

As this program addresses the training needs of schools in remote areas, it would be fullyfinanced by the project and would receive priority financing. The coverage area of the programwould first be comprehensively determined, so as to ensure that no school fall into a gray areabetween the PKG Model C and the MGMP coverage areas. The kanwil-based management teamwould establish for every year a schedule, and would select the teachers to benefit from theprogram during that year on the basis of pre-established criteria.

88 Annex 5: Page3of4

b) MGMP

Schools in cities and easily accessible rural areas would be covered by the revised MGMPtraining formula, and would be essentially independent and self-financing, but would be eligiblefor Project support under certain conditions (criteria to be defined in the implementation plan).

Management. The program will be managed by Ka Kandep or his representative, workingwith a group of headmasters representing the participating schools. The management team willdivide the kabupaten into clusters of appropriate size, and be responsible for finances (particularlyyearly requests for Project funding), the maintenance of records, and arranging the trainers' workschedules.

Meetings. Cluster-level teachers' meetings will be held on a regular basis, approximately15 times per year. A cluster level management team consisting of the head teachers of theparticipating schools will set the timetable, guru inti will be responsible for arranging and runningthe program.

School visits. Guru intl will carry out systematic visits to all junior secondary schools ona regular basis. During the visit, the guru inti will observe a lesson taught by every teacher in hisspecialist subject, provide feedback, and write a report highlighting achievements as well asidentifying areas where there is need for improvement. A file of reports will be maintained.

Visits from the provincial team. Subject specialist pengawas (supervisors) and instructorswill visit the kabupaten on a regular basis to guide and monitor the guru inti's work. They willreview the guru inti's school reports and visit cluster meetings.

Incentives for improvement will be introduced including the display of outstandingstudents' work at the cluster center, the presentation of model lessons by outstanding teachers atspecial cluster meetings, and opportunities for upgrading and promotion for guru inti.

Funding. The MGMP management teams, established for a cluster of schools, would beeligible for project funding and would need to present to the PIU a request for the academic year.Funding would cover only the teachers fitting the pre-established criteria.

Training Fund. The Project would establish a Training Fund that would provide, uponrequest by the MGMP management teams, the following inputs:

* An honorarium of Rp. 12,500 per day to LKGI-trained guru inti for each day spent at acluster-based in-service meeting as a trainer (including travel allowance).

* An honorarium of Rp. 15,000 per day to LKGI-trained guru inth for each day spent on schoolvisits (including travel allowance).

* A travel subsidy of Rp. 2,000 per meeting for any participant who must travel one hour ormore to attend the cluster meeting.

* A fixed sum of Rp 25,000 per year for each subject group in each cluster, as a contributiontowards the cos: )f consumable training material.


E. Teachers' Qualification Profile

The following table presents the qualification levels of teachers for the province of EastJava. Fifty percent of teachers in public schools, and 67 percent in private schools, have a degreeequivalent to D3 or above.

... ' ' ;''~~~~~~~~~. ... ' '".' '. .'. ......... '.. . ..

Schools Number of Senior DI D2 D3 Bach. S1 S2teachers Sec.

Public 34,050 6% 27% 17% 13% 12% 26% 0%Private 31,148 18% 12% 5% 9% 14% 42% 0%

- .-w -.-. :~~ ~~~~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. .

Public 3,630 8% 51% 24% 10% 3% 3% 0%Private 3,485 32% 25% 11% 11% 10% 12% 0%

F. Summary Table

The following table presents the number of teachers that would be trained (PKG), or whichwould receive support from the project for their training (MGMP) in the project's two provinces.

Number of Teachers Trained

1996-97 1997-98 1998-99 1999-00 2000-01 TotalPKG Model CEast Java

public schools 1,900 1,900 1,900 1,900 913 8,513private schools 190 190 190 190 90 850

2,090 2,090 2,090 2,090 1003 9,363NTT

public schools 600 600 600 600 320 2,720private schools 60 60 60 60 30 270

660 660 660 660 350 2,990Proiect 2.750 2,750 2 750 2.750 1.353 12.353

MGMPEast Java

public schools 2,800 5,600 8,513 8,513 8,513 33,939private schools 280 560 851 851 851 3,393

3,080 6,160 9,364 9,364 9,364 37,332NTT

public schools 350 700 1,012 1,012 1,012 4,086private schools 35 70 101 101 101 408

385 770 1,113 1,113 1,113 4,494Proiect 3465 6.930 10.477 10.477 10.477 41,826

90 Annex6: Page lof 5


TERMS OF REFERENCE FOR THE SCIENCE EDUCATION STUDY

A. The Study

1. Objectives. To evaluate and select an innovative and cost effective approach to teachJSE school children of Indonesia the basic scientific foundations of everyday life andenvironment, and raise their awareness of the scientific understanding of technology. Theselected approach would be recommended to be adopted as a national strategy for scienceeducation at the JSE level in Indonesia.

2. Specific Issues. Two models of science teaching at primary JSE level will beevaluated in order to generate the necessary empirical data to establish their comparative cost-effectiveness. The specific issues to be evaluated are:

(a) The impact of the models on students' cognitive achievement in sciences,problem solving, and attitudes toward self, school, and society;

(b) The administrative feasibility of each model implementation; and(c) The search for the most cost-effective modality.

3. Structure of the Study. The study will be based on a teaching experiment developed(under the East Java and NTT Secondary liducation Project) in about 80 classrooms duringtwo school years. The study would be undertaken over a three-year period by a group withhigh qualifications id experience in research and education policy analysis. The final reportis due in October, 2000.

B. Methodology

4. Research Methodology. To assess the impact of different models of scienceeducation, a cost-effectiveness analytic framework will be applied. To the extent that cognitiveachievement, problem-solving, and students' attitudes can be measured, a cost-benefitapproach will be implemented. The cost analysis should focus on differences in the costbetween the different modalities of JSE science education. The examination of modeleffectiveness will use the educational production function tools.

5. The following elements must be included in the evaluation proposal:

(a) The evaluation would look for the following three possible effects of differentmodels on the student:(i) Changes in cognitive achievement;


(ii) Changes in problem solving skills; and(iii) Changes in attitudes toward science and technology, self, school, and

society.

(b) The evaluation would contemplate three testing points in time for assessing thepossible differential effects of different models:(i) A base line, at the beginning of an academic year, measuring attitudes,

problem-solving skills, and knowledge about the learning objectives ofthe science curriculum;

(ii) Effects observable at the end of an academic year, after the studentshave experienced the models; and

(iii) Effects observable at the end of the following year. This requires alongitudinal panel data gathered from the same cohort of students.

(c) The sample design should take into account the different types of juniorsecondary schools in the two project provinces. Students from schools notparticipating in any of the two models will serve as the first control group, butstudents in each model will form a control group when compared with studentsin other models;

(d) The unit of observation will be the students. Because students from the sameschool will have many characteristics in common, a more aggregate exerciseusing the school as a unit of analysis will fail to test the hypothesis we areinterested in, because of masking of individual differences through averaging;

(e) The dependent variables to be included should be as follows:(i) Continuous cognitive and problem solving skills measures; and(ii) attitude measures.

(f) The independent variables will include measures of parents' socioeconomicbackground; student gender and age; community socioeconomiccharacteristics; school/teachers characteristics, such as school nature andmodality, school expenditure per student, teacher quality, through and index ofquality of school inputs; and

(g) Hvpothesis testing. Crosstabulation and regression analysis will be used inorder to attempt to detect any significant effects of particular models onstudents' achievement and attitudes, as follows:

(1) The regression will be of the general type:Y = f (model, region,background, individual, and school characteristics), where Y is one ofthe dependent variables discussed above; and(ii) To measure the cost-effectiveness of each model, the study willrequire identification of the costs of each model, including supervisionof implementation, teacher training, materials, etc.


C. The Product

6. Elements of Research Proposal. The final research proposals should includethe following elements:

(a) Specification of main research (evaluation) questions;(b) Design of sample;(c) Design of information gathenrng instruments;(d) Definition of logistic of field work, including mechanisms to reduce

the attrition rate.(e) Definition of schedule of field work;(f) Definition of data processing.(g) Definition of statistical models and methods of analysis to be used.(h) Implementation schedule specifying the tasks to be done and their

respective duration. This element should also include report schedule.A report should be produced and delivered to Dikmenum and the Bankafter the first two measures. The final report should include the resultsfrom all measures and cost-effective analysis; and

(i) Detailed budget, including costs by activity and type of expenditure,i.e., direct (personnel and others) and indirect costs. Theimplementation schedule and the budget would allow the contract to bedivided into several phases and payments to allow Bank review andapproval on intermediary steps (e.g., questionnaire and test design,sample selection, review of first report.

7. Criteria for Proposal Selection. The criteria for proposal selection includethe pertinence between the methodological and technical aspects of the proposal and thespecified research elements; the pertinence of the schedule proposed (adequate relationbetween tasks and time proposed for implementation); and experience of the researchers ineducation research, particularly in education evaluation.

D. Preparation, Coordination and Monitoring

8. Study Coordination and Preparation. The PCU, as the agency responsiblefor the proposed project, will coordinate the study experiment in conjunction with the PIUs inEast Java and NTT, which will be responsible for the local management.

9. A specialist will be hired to serve as study coordinator at PCU under terms ofreference agreed upon with the Bank. Resources must be available for easy mobilization andfrequent visits to the study-related activities in East Java. In the East Java PIU, liaisonpersonnel must be selected and trained in a timely manner, in order to cooperate with thecoordinator in the experiment monitoring process. The coordinator's contract would start inMarch, 1997 and end with the final report delivery in October, 2000.

10. A consultant would be hired in February, 1997 for four months (under terms ofreference agreed upon with the Bank) to lead the preparation process, including curriculum,materials and teacher training design, and relevant literature. The consultant's activities would


be based on a close dialogue with the Indonesian authorities, the coordinator and otherinformation-gathenrng strategies.

ll. The coordinator and the consultant will develop the following activities:

(a) Teaching Experiment. The study will be conducted as a step-by-stepassessment of an actual teaching experiment taking place in project schools andclassrooms during the school years of 1998-99 and 1999-2000. A curriculumwill be designed, teachers trained on the selected methodologies, andinstructional materials developed, as follows:(i) Curriculum Design

(a) A curriculum will be developed by Dikmenum for the first andthird grades, and the necessary equipment purchased or made.Reference has to be made to the best examples of modem orhands-on science teaching methods available.

(b) To help Dikmenum design such curriculum, it is necessary togather information on the best (even international) experiencescarried out in science teaching at JSE education level.

(c) Two different approaches to science study teaching at JSE levelwould be adopted and tested in the schools. The final reportwould recommend (with justification based on cost-effectiveness) the best one to be later considered by MOEC.

(ii) Teacher Training(a) Current teachers in different types of project schools will be

selected to be adequately and timely trained to play roles asexpected in their respective schools and classrooms.

(b) Two two-week (80 hours each) training sessions will takeplace in August, 1997 and May, 1998. The program for theteacher training programs must be agreed upon with the Bank.

(c) Training must be given by experienced trainers (acceptable tothe Bank) in terms of content and methodology. Each trainerspecializes in one of the two approaches.

(iii) Instructional Materials and Guides. Grade-related materials (accordingto the curriculum) must be developed (made, printed, purchased).Concrete experience and local experiments must be emphasized over'bookish" description and formulation. Simple kits must be bought orlocally developed.

(b) School Selection. A random sample of 160 (80 experiment +80 control)classrooms will be selected (and confirmed by an agreement) for the study, as follows:

(i) A set of 180 representative (first and third-graders; urban rural, publicand private) classrooms would be selected.


(ii) The 80 control classrooms should be either in the same schools ascorresponding experiment classrooms or in comparable schools in thesame district.

(c) Monitoring and Evaluation

(i) Each study school and classroom will be monitored either by the stateor the national coordinator. An early visit should be paid to eachselected school to recommend the experiment and support the scienceteacher;

(ii) Supervisors and school principals must be oriented (during theirtraining programs or during visits to their schools) on the objectivesand strategies of the experiment. Their support is extremely importantfor the success of the study in the schools;

(iii) Periodic progress reports will be submitted to Dikmenum and theBank, approximately twice a year, according to the calendar;

(iv) A mid-term evaluation would be undertaken in July, 1999 to assess theexperiment development and make recommendations. Dikmenum,other MOEC sectors, two extemal consultants, representatives of the27 provinces, and approximately ten project teachers would take part inthis evaluation.

(c) Calendar

(i) Coordinator hired: March 1997 through October 2000.(ii) Consultant hired: May 1997.(iii) Relevant experiences discussed: August 1997.(iv) Study schools selected: October 1997.(v) Trainers selected: October 1997.(vi) Training strategies developed: December 1997.(vii) Teachers selected to be trained: February 1998.(viii) Curriculum designed and equipment selected: March 1998(ix) First teacher training session: May 1998.(x) Experiment takes place July 1, 1998 through June 30, 2000.(xi) Second teacher training session: May 1999.(xii) Mid-term evaluation: July, 1999(xiii) Progress reports due: May and October; 1997, 1998 and 1999; and May 2000(xiv) Final report due: October 2,000(xv) Action plan developed by MOEC: May, 2001



MANAGEMENT TRAINING

I. Background

Objectives. The management training component aims at improving the juniorsecondary education management efficiency and productivity in public, private and religiousschools, so that the access- and quality-related inputs provided by the project, GOI and otherdonors yield the expected educational results in the schools. The project would achieve this by(i) helping the central level shift towards a more policy-oriented, monitoring, technicallyassisting and evaluating role; (ii) providing Kanwils, Kandeps and Kecamatans with themanagerial and analytical tools required for planning, policy and financial analysis, projectimplementation, data gathering and evaluation; and (iii) improving headmasters' ability toameliorate student learning results, enhance the motivation and productivity of their teachers, andlearn ways to link their school with their catchment communities.

Skill-oriented training. The emphasis of the management training component would beon the acquisition of technical, practical skills that can find an immediate application in theadministrative environment of the trainees. The acquisition of new managerial skills is expectedto be accompanied by long-lasting changes in behaviors and attitudes that could positively affectthe day-by-day processes and outcomes of schools and the system.

Ownership and Efficacy. With the increased emphasis on devolved responsibilities andlocal participation and ownership the development of managerial skills at the sub-central levelsbecomes a sine qua non condition for success. As the decision-making process for policy andproject implementation is moved from central offices to administrative instances closer to theschools (Kanwils, Kandeps and Kecamatans), more dynamic skills are required for immediateresponse and efficacy in the decision-making process. As a consequence, policy andimplementation plans must be discussed and agreed upon with PIU and Kanwils.

II. Program Development

The overall development of this component will be carried out in three major phases:program design, program implementation and program evaluation.

A. Program Design

Development Team. The management training program will be designed undersupervision from the Program Coordination Unit (PCU) at Dikmenum by a "DevelopmentTeam" comprised of two international and two national consultants. The consultants (all withrecognized expertise in the area) will be hired by PCU for five months each during the first yearof the project..

96 Annex 7: Page2 of 5

Tasks. The Development Team, drawing in particular on the expertise of PCU's andProject Implementation Units (PIU)'s staff and of other ad-hoc participants, is expected to:* review past and existing training programs and material in Indonesia's education sector* asses the types and levels of skills that are required at the various echelons of the

administrative system;* design the program curriculum and methodology for each skill area;* prepare training materials specific for each skill area, taking into account materials designed

for national or international programs;* field test the program curriculum, methodology and material;* set criteria for trainer selection in each area;* train the trainers in one-week workshops;* lay out an implementation schedule;* refine a set of output and performance indicators.

Guidelines. As a result, course implementation guidelines will be prepared by theDevelopment Team. The guidelines will include program and plan (objectives, content,materials, skills to be developed), methodology, duration, evaluation and self-evaluation forms,suggested bibliography. The guidelines will be used for trainers' training.

Skill training activities. The skill-training activities would focus on the followingmanagement areas, which were the result of consultation with the provinces and Dikmenum, butshould not be considered exclusive:- Educational Planning: Planning as a form of rational and intentional intervention.

National and provincial educational needs, demands and priorities. Economic retums ofschooling. Educational variables and the forecasting of social and economic development.

- School Mapping: Micro-planning technique that consists of much more than simplyplacing schools on a map so as to analyze their geographical distribution. The key point is todetennine if a given population has (or will have) easy access to the required school.

e Policy Analysis: National policies and priorities in education. Quality/efficiency andequity issues. Policies, decentralization and local ownership. Financial issues. Public andprivate, urban and rural, and girls education. Conditions for school effectiveness.

* Monitoring and Evaluation: The establishment of (and agreement on) educational criteriaand standards. The role of performance indicators. Monitoring strategies, instruments andtiming. Quantitative and qualitative assessment. Evaluation and provision of feedback.

* Information Analysis and Dissemination: What is information for? The development ofanalytical capacity at the provincial and district level. Information for the decision-makingprocess. Simple ways to disseminate results back to information consumers.

* Education Data Management: The fundamentals of education data gathering andanalysis. Key concepts of education planning and evaluation. The school as the workingeducational management unit. From data to information and the dissemination process.

* Computer Use: Basics of computer literacy. Basic computer maintenance. Spreadsheet datamanagement. Wordprocessing.

* Technical Supervision: From bureaucratic inspection to technical supervision linked toteaching and teacher development at school level. Observation and communication skillsrequired from the new supervision. The headmaster as the principal and closer supervisor.

* Student Performance Assessment: Why do students differ in learning conditions andprocesses? Teachers and techniques for assessing students' academic performance. Purposesof macro and micro student performance assessment. Reporting the results.


* Management of School Facilities: Basics of school architecture. The school as a pleasantenvironment that stimulates learning. Physical conditions of classrooms as the habitat forlearning. Users' (student, teachers) satisfaction. Cost-effective school maintenance.

* Community Participation: How to seek inputs from parents and encourage theirparticipation in a variety of school endeavors. Survey parents to obtain their views on theschool, its processes, programs and outputs. Include parents on school advisory bodies.

Trainers' Selection and Training* Trainers for all areas will be selected by PCU during the design phase among those

professionals with recognized proficiency and experience.* Selected trainers will have a one-week training workshop focusing on objectives,

methodology and evaluation.* The training workshop will be mostly based on the guidelines designed by the Development

Team.* Trainers will be distributed by PCU for central, provincial and district courses.Ceteris paribus, trainers living in East Java and NTT should be preferred, provided that they meetthe professional quality criteria.

B. Program Implementation

Training Coordination. The program will be implemented on five administrativelevels (see Table 2): the central segment by PCU in Jakarta; the Kanwil segment by Kanwil inSurabaya (East Java) and Kupang (NTT); the Kandep, Kecamatan and school segments byKandeps using local facilities. In every province the PIU plays a coordinating role. The trainingimplementation timetable is presented in Table 1. Skills to be developed, segments, levels andnumber of participants are detailed on Table 2.

Table 1. Training Implementation Timetable by Level and YearYear 1 Year 2 Year 3 Year 4 Year 5

PCU preparation 100%Kanwil preparation 100% -

Kandep preparation 70% 30% -

Kecamatan preparation 20% 30% 30% 20%Schools preparation 10% 30% 40% 20%

Trainees' Selection Criteria

* Participants at PCU, Kanwil and Kandep levels must be involved with the East Java andNTT Junior Secondary Educationi Project.

* All the Kecamatan heads and all (private, public and religious) junior secondary schoolheadmasters in East Java and NTT qualify to participate in the program.

* Each individual participant is allowed to take up to three 40-hour courses, or five 20-hourcourses, according to selector's decision.

* For each traininig session PCU participants will be selected by PCU director; Kanwilparticipants by Kakanwil and PIU director; Kandep, Kecamatan and school participants byKakandep.


* The Kandep, Kecamatan and school headmasters training groups will be constituted ofparticipants hailing from the same Kandep. If any training session needs to involve traineesfrom more than one Kandep, the Kanwil assumes a coordinating role.

* Selectors will define the annual training groups, notifying the participants at least threemonths in advance.

C. Program Evaluation

Program processes and results will be assessed through four types of evaluation: (a)User's Survey; (b) Annual Implementation and Mid-term Reviews (SAR para. 5..9 & 5.10); and(c) Technical Audits (SAR para. 5.1 1).

User's Survey. The user's survey will be designed by an international consultant, andwill focus more specifically on the skills that the management training program is expected todevelop. The consultant will identify the users to be surveyed, and the periodicity of the survey.The survey will be pre-tested under the supervision of the consultant. A base-line will have to beestablished in the first year of the project. The consultant will be hired for four months, two forsurvey design and test, and two for periodical analysis of results.

Table 2. Skill Development Schedule by Province

Training Center(b) Kanwil(c) Kandep(d) Kecamatan(c) School(' TotalTime EJ NTT EJ NTT EJ NTT EJ NTT

1. Educational Planning 40 hours 1 5ka) 15 15 0 0 0 0 0 0 452. School Mapping 40 hours 15 155 15 111 36 0 0 0 0 192

3. Educational Policy Analysis 40 hours 15 15 15 0 0 0 0 0 0 454. Monitoring and Evaluation 40 hours 15 155 15 111 36 0 0 0 0 192

5. Information Analysis and Dissemination 40 hours 15 155 15 111 36 0 0 0 0 1926. Education Data Management"' 40 hours 15 45 30 111 36 612 98 4590 610 6147

7. Computer Use 20 hours 0 30 15 259 84 0 0 0 0 3888. Technical Supervision 20 hours 0 0 0 111 36 0 0 4590 610 5347

9. Student Performance Assessment 20 hours 0 0 0 0 0 0 0 4590 610 520010. Management of School Facilities 20 hours 0 0 0 0 0 0 0 4590 610 520011. Community Participation 20 hours 0 0 0 0 0 0 0 4590 610 5200

(a) Figures represent the number of participants for each course. Each participant can take up to three 40-hour courses, or up to five 20-hourcourses.(b) Trainees at central level constitute a selected group of PCU members. Exceptionally Dikmenum professionals can participate in the training. u(c) Kanwil trainees will be distributed so as to allow the formation of several clusters of well-trained professionals.(d) Kandeps are a multiple of 37 (number of Kandeps in East Java) or 13 (number of NTT Kandeps).

0(e) All the Kecamatan heads in East Java and NTT will take the "Education Data Management" course. °(f) All headmasters in public, private and religious junior secondary schools qualify for a set of five 20-hour courses.(g) "Education Data Management" will be designed so as to work as a kind of introductory course for most participants.



PUBLIC AND PRIVATE EDUCATION

1. Description of the Private Sector at Junior Secondary Level

The private sector has a large participation in the provision of education services at thejunior secondary level. In 1994/95, the latest academic year for which statistical information isavailable, enrollments in public and private schools in the two project provinces were as follows:

Table 1: Public and Private School Enrollment by Province

Enrollments Public Schools Private Schools Private/TotalEast Java 1,255,219 696,012 559,207 44.6%NTT 110,866 65,576 45,290 40.9%Indonesia 7,812,536 4,602,137 3,210,399 41.1%

The important part played by the private sector in the supply of junior secondaryeducation services is not a recent phenomenon. Over the past 10 years, private schoolenrollments have consistently been above 40 percent of the total for all of Indonesia, althoughthere has been a gradual reduction from about 46 percent in 1985/86. More specifically, theshare of private school enrollments declined until 1992/93 during a period of significantreductions in total enrollments from the previous peak of 7.4 million in 1988/89. But it has beenkept constant at about 41 percent during the resurgence of junior secondary school enrollments inthe last two years.

With the exception of schools (Madrasahs) managed by local Islamic groups, whoseestablishment is approved, and operation is supervised, by the Ministry of Religious Affairs(MORA), private school establishment and operation is approved and supervised by the Ministryof Education and Culture (MOEC). In 1994-95 there were 18,221 private schools in Indonesia,10,674 of which were under the supervision of MOEC (SLTPs) and 7,547 Madrasahs (MTs).The number of schools and of students in the project provinces were as follows:

Table 2: Number of SLTP and MT Private Schools with Enrollment Levels

SLTP MadrasahsStudents % Schools % I Students % Schools %

East Java 368,536 66 1,691 64 190,661 34 953 36NTT 43,034 95 339 92 2,256 5 28 8Indonesia 2,129,964 66 10,674 58 1,080,435 34 7,547 42

School Establishment and Accreditation. Many private schools are established andoperated by local communities which have not succeeded in their efforts to have a public schoolestablished, or by associations of teachers. In addition, a large number of private secondary


schools in Indonesia are established by various organizations, mostly of a religious charactersuch as the Mohammadiya and the Catholic Church. It should be noted, however, that in thelarge majority of cases where schools are operated by organizations aiming at influencing localcommunities, the specific location of the school is determined by whether a public school alreadyexists and, if so, whether such a school has the capacity to meet existing local demand foreducation. It is rare to find cases of private schools in direct competition with public schools.

An organization starts the process of establishing a new private school by seeking afavorable ruling on the part of the MOEC and local Government officials at the sub-district level.The ruling is generally favorable if there is a large enough number of primary school graduates(virtual demand) in the catchment area with no access to a public school to satisfy operation ofthe proposed school. Once their approval is secured, the sponsoring group, through a non-profitassociation (yayasan), submits an application to the district office of MOEC which eventuallymust be approved by the head of the MOEC office at Province level (Kakanwil). It takes about 9months for the whole process to be completed.

Schools are supervised and accredited by the MOEC Directorate of Private Schools,through local MOEC officials at the Province and District levels. Accreditation classifiesschools in one of four categories: "listed" (lowest), "registered", "recognized", and "equivalent"(highest). A newly established school is classified as "listed", and a review for potentialupgrading of its status takes place three years later, when the school has produced its firstgraduates. There are 8 quality criteria applied during review (such as student performance innational exams, number of graduates, and adequacy of school facilities). Depending on theresults, the school may retain the "listed" status or be promoted to a higher category. In principle(and also in a few actual cases), a school may be promoted immediately after the first review tothe highest "equivalent" category. But normally there is a more gradual progression followingsuccessive reviews. The distribution by accreditation category and province is given in Table 3.

Table 3: Private Schools (SLTP) by Accreditation Level

Equivalent % Recognized % Registered % Listed % TotalEast Java 91 5 1,333 79 125 7 142 8 1,691NTT 11 3 124 37 191 56 13 4 339Indonesia 987 9 5969 56 2725 26 993 9 10674

Although the Directorate of Private Schools of MOEC does not collect information onthe association between school ownership and accreditation ranking, partial information from asmall number of provinces included in the proposed projects indicates the following:"Equivalent" schools are in general owned and operated by religious organizations, while a fewof them are operated by teachers' associations; "Recognized" schools are in general owned andoperated by teachers' associations and other non-profit organizations (yayasans) while a few ofthem are owned by religious organizations; "Registered" schools are generally owned andoperated by teachers' associations and other non-profit organizations, while a large number alsobelong to small town and village communities; Finally, "listed" schools are in general ownedand operated by small rural communities that do not have a public school in the community itselfor at a nearby location.


2. Description of Public Support Program for Private Schools

The Government is aware of the benefits of a flourishing private sector in juniorsecondary education. Its policy orientations are explicitly stated in Repelita VI (Book IV, pp. 98-99 and 112-115 and accompanying Tables) indicating GOI's determination that private schoolsshould preserve and even increase their share in total junior secondary enrollments. Moreimportant from a practical point of view, the public sector devotes significant amounts ofresources, in kind as well as in the form of money grants, to support and improve the quality ofprivate schools. Support in kind includes secondment of public sector teachers to privateschools, distribution of textbooks free of charge, provision of equipment, and training of privateschool teachers in publicly funded programs. Money grants are provided to about two thirds ofprivate schools at the lower end of financial viability (i.e., "listed", "registered" and part of"recognized" schools).

Teachers. For all of Indonesia seconded teachers fill 16.2 percent of teaching posts inprivate schools, with 8.7 percent in East Java and 24 percent in NTT (1993/94 figures). Thereare however reliable indications that a disproportionately large number of seconded teachersserve in "equivalent" and "recognized" private schools, while the poorest schools that have thegreatest need for them receive very inadequate allocations.

Textbooks. For private schools, estimated needs amount to 31 million textbooks and 1million teacher guides. Actual distribution during 1993/94 - 1995/96 amounted to 15.5 milliontextbooks and 0.3 million teacher guides. Thus, although large gaps still remain, public sectorcontributions are very important in supplying this critical input for raising private school quality.

Teacher Training and Equipment. No tabulated information exists on the magnitudeof public sector funding for training private school teachers and supplying teaching equipment toprivate schools. Officials in charge of these activities at MOEC estimate that the public sectorallocates about 20 percent of its training activities to private teachers, and distributes also about20 percent of purchased school equipment to private schools.

Operational Cost Subsidies. Public sector subsidization of the operational cost ofprivate schools is granted to both SLTP and Madrasah schools and is in the form of a flat amountper classroom (uniform for all provinces and subsidized schools). Although data on the totalnumber of private schools' classrooms are not available for 1995/96 and 1996/97, their numbersfor 1993/94 and 1994/95 indicate that the operational cost support program covers between 50percent and 55 percent of SLTP classrooms, and between 90 percent and 95 percent of Madrasahclassrooms, for a combined total of about 65 percent of all private school classrooms. Theprogram targets schools at the lower end of financing capacity.

The overall level of public sector support to private schools is estimated at about US$58million, or 9 percent of total public spending (development and recurrent) on junior secondaryeducation. Salaries of seconded teachers make up about two thirds of the total cost, textbooksand teachers guides 17 percent, operational cost subsidies 12 percent, while teacher training anddistribution of equipment are less important cost items.


3. Description of Project Support for Private Schools

The project's financing for items such as teacher training and the provision ofinstructional tools and library books would therefore complement GOI's own efforts. By raisingthe standard of instruction at private schools, project funding for quality inputs would helpreduce the disparity between public and private education and encourage parents to view privateschooling as a worthwhile option. By stimulating demand for private schooling in this way, theGovernment would limit the amount of public expenditure required to achieve its enrollmenttargets.

Private schools in the project provinces would benefit directly from the following projectactivities: (a) teacher in-service training through PKG and MGMP; (b) educational equipment;(c) library books; (d) management training for headmasters. In addition, private schools wouldbenefit indirectly from such project activities as improved Kanwil management, monitoring, andevaluation of schools and students as well as from the construction of public schools, whosefacilities are often used after-hours for private schooling through teacher associations.

4. Criteria For Assistance To Private Schools

a) Support for quality improvement to private schools will be in the form of reference andlibrary books, equipment, teacher training, and teacher and management upgrading programns.

b) Assistance in the form of in-kind educational inputs is preferable to grant for the followingreasons:

* the above inputs in-kind can lead directly to the quality improvement sought, and tothe upgrading of the accreditation of the schools;

* outputs or outcomes of assistance are more tangible;* assistance is easily monitored, such as number of teachers trained, books delivered,

equipment supplied, etc.;* distribution of assistance is more efficient;* possible abuse of government assistance will be minimized.

c) Priority will be given to rural, remote, or poor private schools which have the potential toincrease enrollment and quality, especially self-help community private schools. Prioritywill be given to viable private schools not receiving any other assistance from government.

d) Assistance will be awarded annually, and maintained if the school satisfies the above criteria.

e) Eligible private schools can apply to the head of MOEC district office (Kakandep) or to thehead of MOEC provincial office (Kakanwil) for government assistance.

f) Selection, review and decision processes will be undertaken by the Private SchoolAssistance Committee at Kanwil Office.

g) Recipient school will receive assistance annually, and can be extended upon satisfactoryperformance.

h) The effectiveness of the private school assistance program would be monitored annuallyusing basic educational indicators in a structure format.


INDONESIAEast Java and NTT Junior Education Project

INNOVATIVE JUNIOR SECONDARY EDUCATION MODALITIES

Two Innovative JSE Modalities

1. Confronting the need to expand the access to JSE and considering that are the poor andthe rural children who are not enrolled, the Government has designed and adopted non-traditionalJSE modalities, planned to deliver JSE education at a relatively low cost for children who havehad no access to schools either because of financial constraints, or lack of schools in their(mainly rural) areas. Two major experimental programs are now in progress, the "Small (Kecil)JSE School" and the "Open (Terbuka) JSE," which provide equal opportunities for JSE access toall children, regardless of their socio-economic status and habitat. Non-traditional JSE strategieshave been used by other countries with low JSE coverage rates such as Thailand (classroomexperience, radio and self-study), Mexico (Telesecundaria, a TV-supported strategy) andZimbabwe (study centers). The following table shows how the Indonesian junior secondaryKecil and Terbuka approaches compare with regular JSE schools:

Junior Secondary Education (JSE) Modalities in Indonesia

Strategy/Modality Regular Kecil Terbuka

1. Program length 3 years 3 years 3 years

2. Meeting place Nine to 27 3 and 6 classroom "Learning Center" andclassroom school school base school

3. Classroom attendance 6 days a week 6 days a week 2 days a week

4. Academic support one-subject teacher two-subject teacher Polyvalent tutor/one-subject teacher

5. Printed material used Textbook Textbook Modules, audio-visuals

6. Academic schedule Morning Morning Afternoon, evening,weekend

The "Small JSE" (SMP Kecil)

2. Concept. This is a reduced version (with 3 or 6 classrooms) of a regular JSE schoolThe innovation here is the dimension of the school which is made smaller to meet the localizeddemand in remote areas. The Kecil modality appears in two dimensions, either with 3 (Type E)or 6 (Type D) classrooms to fit the demand posed by primary school graduates wherever they do


not exceed 120 (3 classrooms of 40 students each) or they reach approximately 240 (6 classroomsof 40 students each).

3. The school name (kecil= small) derives from the fact that so far the Govemment's JSEfacilities are rather large schools categorized as Type A (27 classrooms), Type B (18 classrooms),and Type C (9 classrooms). Schools with less than nine classrooms were considered wasteful asthe overhead expenses were high, and the student/teacher ratios fall considerably. However,with the JSE universalization drive, some compromising was needed on cost effectiveness. TheGovernment now allows establishment of "Small JSE" (less than nine classrooms) with theunderstanding that such schools would eventually grow to reach the minimum standard size ofnine classrooms. It is worth noticing that the vast majority of rural private schools have less thannine classrooms.

4. Analysis and Implications. As a regular JSE school the Kecil conforms to alladministrative and academic regulations and standards of this school level. The only exceptionis that, given the small size classes, teachers would be asked to teach more than one subject.This has been successfully applied in a number of countries with similar socio-economic andgeographical constraints. Considering that at present the majority of JSE teachers are unqualified(below D3 level), there is hardly any compromise in this proposal. Some classes could be heldin the afternoon, using part-time teachers from the nearest regular JSE. The problem would bereduced to transportation costs.

5. Project Strategy. The proposed project supports de construction of 169 Kecil schools inEast Java, 124 of 6-classrooms and 45 of 3 classrooms. In NTT 108 Kecil schools will be built,being 52 of 6 classrooms, and 56 of 3 classrooms. Criteria have been established for the locationof these schools, each one of them including a library and a multi-purpose room.

The "Open JSE" (SMIP Terbuka)

6. Concept. The "Open JSE" (Terbuka=- open) program is conceived as a major alternativefor JSE school age children who fail to enter a regular public school because of low grades innational (Ebtanas) examinations, financial constraints in entering a public or private school, andlack of schools in the area. The Terbuka model can serve either young workers in urban contextsor notably children in scattered rural areas. Terbuka students are free in the mornings, so thatthey work (most of them help their parents in farming or home chores) and adjust their "school"schedules to domestic and seasonal peculiarities. Originally (1979), the Terbuka model wasdeveloped by the MOEC's educational technology agency Pustekkom (Center forCommunication Technology for Education and Culture), as an experimental project consisting offive schools in five different provinces. In 1984, when it was decided that the model should beexpanded, the project was managed by a joint team from Pustekkom and Dikmenum, theDirectorate for General Secondary Education.. Sixty-six percent of the 59 existing SMP Terbukawere created between 1993 and 1995.

7. When sufficient demand is posed by primary school graduates in rural communities andTerbuka is selected as the preferred strategy, a regular JSE in the area is selected to be the baseschool responsible for developing a network of (an average of five) satellite "Learning Centers"(TKB= Tempat Kegiatan Belajar) in the communities where children live. Each local "LearningCenter" comprehends from 5 to 30 students who have two major kinds of learning activities: (a)tutored sessions (four afternoons in the Week) in the "Learning Center" under the supervision of a


local tutor who normally is a primary school teacher; and (b) afternoon classes twice a week inthe base school with regular teachers. During the tutored sessions students do their homeassignments in a primary school, community center or other premises in the village. Studentsand teachers are supplied with specially prepared "modules," or illustrated booklets written to beself-instructional so that students can learn either individually or in group. They are providedalso with structured distance learning media such as radio, audio cassettes, slides, video-cassettes etc. There are no attendance fees, but students pay for transportation to the base schooland for the modules. "Learning Centers" are periodically visited by base school's teachers forremedial or supporting classes.

8. Analysis and Implications So far there is no systematic evaluation of the Terbukaexperience. There is consensus, however, that specific demand exists, the Terbuka concept isviable and the modules are well designed.. Girls predominate at Terbuka and student age seemsto parallel the age of those attending regular JSE schools,. The cost of delivering Terbuka is 52percent of a regular JSE school. Weaknesses lie mainly in the often low qualification of tutorsand the relatively high costs of transportation, which adversely affect attendance. A dropout rateof almost 50 percent was observed in some cases between the first and second grade. Ways andmeans to improve the quality and increase retention rates should be explored.

9. It seems unrealistic to expect that the Terbuka program as it stands today, can produceresults comparable to the regular JSE schools. The majority of students attending this programare bound to be those with low achievement in primary schools. Class attendance and contactwith qualified teachers is greatly reduced. Modules need to be complemented by otherinstructional materials. Quality and efficiency of the Terbuka program could, however, benefitfrom the following initiatives:

(a) Local tutors should be carefully selected from among primary school teachersand given special training during at least three weeks. At present; they attendonly a 5-day training course;

(b) the learning environment of the "Learning Center" should be enriched withresource materials (reading and reference books, dictionaries, audio-visual aids)to support students in doing their home assignments and complementing themodules;

(c) chief of villages, parents, and community members should be mobilized toensure that students do attend regularly tutorial classes. This social networkproved to be a successful approach in expanding access to primary education;

(d) students' and teachers' transportation costs could be partly subsidized by theGovernment; and

(e) the program length could possibly be extended by one year. Students attendingTerbuka programs have the advantage of being able to work productively duringthe school period.

10. Project Strategy. The proposed project supports the Terbuka model by (a) providing aset of reading and reference books for each "Learning Center"; and (b) training tutors for the"Learning Centers." These activities are expected to complement what other donors (mainly theAsian Development Bank-ADB, UNDP and UNESCO) are doing to support the expansion andimprovement of the Terbuka model.


Junior Secondary Education Strategy Matrix

Sectoral issues GOI' s strategy and actions Donors' initiatives Bank's strategy Project componentsLow gross enrollment rates - Increase access through - 9% of S4.03 billion total - Current set of junior - Construction of schools andin JSE, particularly in rural construction of additional assistance between 1979 & secondary education projects additonal classrooms in ruraland remote areas schools and support to 1993 (28% provided by and remote areas

private schools ADB, 43 % by World Bank) - social marketingwent to general secondaryeducation (compared to 50%to universities)- OECF Junior SecondarySchool BuildingConstruction Project (1995)

Low quality of JSE - Increase and improve - ADB Private Junior - Second Secondary - Teacher traininginputs, particularly the Secondary Education Project Education and Management - School libraries, libraryavailability of books and (1995) Project (1990) and reference books, andinstructional material and the - Secondary School Teacher teaching aids >qualification of teachers for Development Project (1996) - Science and technologyboth public and private - Book and Reading educationschools Development Project (1995)

Geographical distribution of - "improvement in the - Secondary School Teacher - Construction of teacherteachers system of recruitment, Development Project (1996) dormitories

appointment, and placement - Pilot initiative for contractof education personnel, in teachers 0particular through reliabledata collection andcoordination betweenoffices" (Repelita VI)

Teachers' commitment to - "prosperity of teachersteaching should be improved, in

particular through plannnedcareer development andadequate rewards" (RepelitaVI)

S4

Sectoral issues GOI' s strategy and actions Donors' initiatives Bank's strategy Project componentsInadequate evaluation of -Development of - Second Secondary - Development ofstudent learning and examinations and student Education and Management Examinations and Studentperformance evaluation Project (1990) Assessment SystemsLow level of public spending - Increase the share of Bank-GOI dialogue throughon education education in the national CEM and other channels

budgetExclusion of poor children - Provide scholarships to - ADB Private Junior - Support for SMP Terbukafrom JSE gifted but poor students Secondary Education Project - Scholarships for gifted but

- Build JSE schools in rural (1995) poor studentsand remote villages- Abolish JSE school fees- Develop altemative schools(SMP Terbuka, SMP Kecil,Paket B) >

Weak managerial capacity at - Provide inputs for capacity - TA supported by ADB - Second Secondary - Managerial and technical CDlower levels of education's building Education and Management trainingadministrative system Project - Improvement of o

information managementsystems- Development ofmanagement efficiency orating (user satisfactionsurveys)

Excessive centralization of - Progressively deconcentrate - Second Secondary - Implemetation of project atthe administrative system administrative Education and Management provincial level

responsibilities Project (1990)Community involvement in - "Community groups should - Consultation of - Inclusion of communities inschools be encouraged to give greater stakeholders in project user satisfaction surveys

contribution to the financing preparationof education" (Repelita VI)


INDONESIAEast Java and NTT Junior Secondary Education Projects

STAKEHOLDER IDENTIFICATION AND CONSULTATION PROCESS

Preliminary Stakeholder Identification

1. The following stakeholders have been identified over the last two years duringmission visits.

Stakeholders Functions and Interests1. Local communities and parents Direct beneficiaries of the program who need to

play a central role in the development of theprojects.

2. Community, Religious, and Private Education These Foundations should make a significantFoundations which establish and run schools contribution to the development of junior

secondary education, and examine how theiroperations can be refined to support GOI policy

3. Provincial and District Education Offices These offices should take greater responsibility fori) project design, so as to address local/provincialcontexts, and ii) for project implementation andimpact.

4. Ministry of Religious Affairs MORA should explore opportunities for expansionof junior secondary education through madrasahs

5. Ministry of Public Works MPW can contribute its expertise for therehabilitation and construction of schools

6. Local Government provincial and district offices They can provide useful information on localconditions to guide project preparation andevaluation.

7. School principals and teachers Use their intimate knowledge of the educationsystem to help define constraints and identifysolutions

8. Teacher Training Institutions and Faculties They have a direct interest in ensuring that theirgraduates are adequately trained in numbers andquality so that they fully support the program.

9. The Open University It should identify ways of improving itseffectiveness in basic training for teachers, andpossibly start helping with in-service teachertraining programs.

10. Bappenas Will provide funds and ensure that the program isimplemented in a way consistent with nationalpolicies.


2. Preliminary stakeholder consultation carried out during previous missions include:

11/94 Island of Madura, East Public school principals Discussion on textbookJava and teachers and equipment issues.

1/95 Malang, East Java IKIP Teacher availability andteacher trainingprograms in theprovince.

1/95 Surabaya, East Java Chamber of Commerce Perception of secondaryof East Java school graduates by

employers. Suggestionson how to address theproblems.

1/95 Surabaya, East Java FKIP Discussion on pre-service teacher trainingand teaching quality inthe province.

1/95 Surabaya, East Java Secondary education Discussion of keyteachers problems in junior

secondary education asperceived by teachers.Possible solutions.

4/95 Kupang, Nusa Tenggara SMP Terbuka Discussion of materialsTimur (NTT) used by Open SMP

students in one of theschools in operation.

4/95 Island of Flores, Private school Visit of severalMaumere, NTT foundation secondary schools to

evaluate academic andinfrastructure problemsresulting from recentearthquake.

4/05 Island of Flores, NTT Catholic high schools Discussion with leadersabout situation andcharacteristics ofprivate schools in theisland.

4/95 Kupang, NTT Seminar with NTT Analysis of possibleKanwil strategies to address

secondary educationissues in the differentislands of NTT.

4/95 Sidoarjo, East Java Secondary school Discussion of studentprincipals and teachers performance

assessments.6/95 Bojonegoro, East Java Kabupaten Discussion with local

kandep and planningteam of a district-basedproposal.


6/95 Sogo, Bojonegoro, East Open SMP (Terbuka) Visit to examine in locoJava the operations and

conditions of an OpenSMP.

6/95 Surabaya, East Java Seminar with 37 Analysis of theirKandeps preliminary proposals

for project design in thedistricts.

6/95 Surabaya, East Java Seminar with NTT Analysis of strategy toProject Preparation involve NTT districts inTeam project discussion and

preparation.6/95 Seoul, Korea Director of General Discussion of general

Secondary Education secondary educationissues in the region.

9/95 Washington, DC Academy of Research in northernEducational part of East Java onDevelopment gender issues in

education. Results to beshared.

Proposed Stakeholder Consultation Activities:

3. The proposed stakeholder activities are scheduled as follows:

* By the MOEC/Provincial Preparation Teams: ongoing field visits and meetings with localgovernments and other stakeholders to discuss and strengthen project design;

* By the MOEC/Provincial Preparation Teams with Bank/RSI facilitation: Periodic NGOforums;

* Under the PHRD Grant: Provision for participatory planning meetings in Jakarta,provinces, districts and field;

* Under the PHRD Grant: Provisions for consultations on the development of socialmarketing strategies for the expansion of junior secondary education;

* By Bank Missions: Informal discussions with stakeholder and local community groupsduring preparation and pre-appraisal missions.



BANK GROUP-FINANCED EDUCATION AND TRAINING PROJECTSLoan/ AmountCredit Board Actual (less cancellations) a

Number Approval Closing Projects Agency IBRD IDA----- US$ million -

MOEC219 1970 1976 First Education MOEC /b 4.5387 1973 1981 Third Education MOEC 13.5

1237 1976 1981 Fourth Education MOEC 24.11433 1977 1984 First Teacher Training MOEC 17.81486 1977 1984 Nonformal education MOEC 8.3869 1978 1985 Polytechnic MOEC 49.0

1904 1980 1987 First University Development MOEC 43.12101 1982 1990 Second Teacher Training MOEC 79.12102 1982 1988 Second Textbook MOEC 24.92290 1983 1990 Second Polytechnic MOEC 106.02355 1983 1990 Second Nonformal Education MOEC 43.02472 1984 1990 Secondary Education and Mgmt Training MOEC 76.62547 1985 1993 Second University Development MOEC 147.02944 1988 1993 Higher Education Development MOEC 140.33158 1990 -- Second Secondary Education and Mgmt MOEC 154.23311 1991 -- Second Higher Education Development MOEC 150.03431 1991 -- Third Nonformal Education MOEC 59.63448 1992 -- Primary Education Quality Improvement MOEC 37.03496 1992 -- Primary School Teacher Development MOEC 36.63754 1994 -- University Research for Graduate Education MOEC 58.93887 1995 -- Book and Reading Development MOEC 132.53979 1996 -- Secondary School Teacher Development MOEC 60.4

Subtotal of Projects with MOEC 1339.0 67.0

Other Ministries288 1972 1978 Second Education (Agriculture Training) MOA /c 6.3

1692 1979 1985 Second Agricultural Training MOA 34.72258 1983 1988 Public Works Manpower Development MOPW /d 29.82341 1983 1992 Third Agricultural Training MOA 62.92599 1985 1993 Science and Technology Training MORT /e 93.02705 1986 1995 Manpower Development and Training MOM /f 58.12940 1988 1995 Accountancy Development MOF /g 113.02992 1988 -- Tree Crop Human Resource Development MOA 18.43112 1988 -- Public Works Institution Dev. & Training MOPW 36.13134 1989 -- Professional Human Resources Development BAPPENAS 117.5

BPPT /h, MOF3721 1994 -- Skills Development MOM 27.73825 1995 -- Professional Human Resources Development II BAPPENAS 69.0

BPPT, MOFSubtotal of Projects with Other Ministries 660.2 6.3GRAND TOTAL 1999.2 73.3

/a "The amount less cancellation" applies only to the projects which were closed (with "Year of ActualClosing"). The amount for other ongoing projects was taken from the Staff Appraisal Reports.

/b MOEC - Ministry of Education and Culture./c MOA - Ministry of Agriculture.Td MOPW - Ministry of Public Works./e MORT - Ministry of Research and Technology./f MOM - Ministry of Manpower./g MOF - Ministry of Finance./h BPPT - Agency for Assessment and Application of Technology.


OUTPUT PERFORMANCE MONITORING: SUGGESTED RATING SYSTEM

Intermediate~~~~~~~~~~~~~~~~~~~~~~~~~~~..... ........ta.i......... .Situxatloit, ...... = .. Years CompIe......uRe*.. .

(a) Increase access to MOEC/MORA Annual MOEC MOEC data on Increase mn enrollment as a percentage of total capacity ofJSS data on enrollment data on enrollment enrollment in project created schools:- Students enrolled in in new regular and in new regular schools. HS - 3(1% in first year, 60% in second year, and 90% mnProject's new schools Terbuka schools. and Terbuka the third year and after.and SMP Terbuka. schools. S - 25% in first year, 50% in second year and 75% in third

year and after US -20% in first year, 40% in second year and60%m in third year and after

. ~~~~~~~~~~~~~HU - 15% in first year, 30% in second year and 45% in dthird year and after _.

- Students enrolled in MOEC/MORA Annual MOEC MOEC data on Increase in enrollmnent in the sub-district as a percentage of o}Project's sub-district data on enrollment data on enrollment enrollment in the expected' enrollment in the various grades.

by sub-district by sub-district Project's sub-district HS - over 90%S - 75to 90%US -60 to75%HU - below 60%

1Expected enroulment is calculated on the basis of the previous year's enrollment plus the new school capacity created by the project and minus the capacity created by theprivate sector and other education projects_

.. .............. I

~~~~~~~~~~~~~~~~~~~~~~~~~~...... n '. ' ..'.'. ' ... ,;.. ... .. .. '.'.'..,.......""."..'''......... ,....... .. ...

(b) Improve quality at MOECIEDC data Annual NEM NEM scores for the An increase in NEM scores during project period: HS - ofJSS5 student examination scores in public various types of 0.2 points; S - 0.1 points; U - 0.0 points-Improvement in student performance (NEM and private schools and subjectsexamination scores by scores) regular andprovince and district Terbuka schoolsaccording to the school and for keyclassificationi subject areas3

x(c) Improve MOEC data on Percentage change Percentage of annual Percent of budget spent and targets met annually: HS - 92 _

educational current percentage mn amount of budget spent and to 98 percent, S - 80 to 92 percent, US - Below 80 management of budget spent and budget spent and targets met each percent q-Implementation rate of physical targets met physical targets year over the project ocmannual Project and annually met annually periodoProvince work program . .

Key: HS = Highly Satisfactory, S = Satisfactory; US = Unsatisfactory; HU = Highly Unsatisfactory.

2 MOEC school classification: (I) Excellent; (2) Good; (3) Average; (4) Below Average; (5) Poor

3 h key subjes to be monitored are Science and Technology, Mah, English, Bahasa Indonesia, Pancasila and Social Education



East JavaDISTRICT RANKING BY POVERTY INDICATOR

Districts & Municipalities % IDT GERBangkalan 62.6 25.5Sampang 60.8 16.3Sumenep 39.8 35.1Ponorogo 37.6 73.1Nganjuk 35.4 69.5Bojonegoro 34.9 63.5Probolinggo 32.4 30.6Pasuruan 31.8 40.8Pamekasan 31.8 30Tuban 30.8 48.7Situbondo 30.2 44Pacitan 28.1 64.2Bondowoso 27.1 26.1Lumajang 25.6 38.8Trenggalek 25.5 61.4Ngawi 25.1 60.5Madiun 21.8 72.6Tulungagung 21.8 79.3Blitar 19.8 60.6Jombang 19.3 95.2Kediri 17.4 67.4Malang 17.2 57.7Mojokerto 16.7 123.5Mojokerto 15.5 64.6Kediri 15.2 113.5Lamongan 14.7 79.9Gresik 12.0 85.2Blitar 10.0 141.7Jember 9.0 38Pasuruan 8.8 79.1Magetan 7.7 88.8Madiun 7.4 136.1Sidoarjo 6.8 82.8Banyuwangi 5.1 57.9Probolinggo 3.5 74.3Surabaya 2.5 75.7Malang 1.8 86.1East Java 24.4 58.4

% IDT: Percentage of villages in the districtwhich are part of the IDT program (anti-

poverty program)GER: Gross enrollment rates


NTT

Districts % IDT GERKupang 38.2 55.8Flores Timur 37.3 49.44Sumba Barat 35.2 35.31Sikka 32.2 35.8Timor Tengah Selatan 31.2 40.37Alor 29.3 54.7Ende 27.2 51.18Belu 26.8 33.22Manggarai 25.9 32.1Ngada 17.7 46.5Timor Tengah Utara 15.9 33.58Sumba Timur 15.0 42.51NTT 29.2 42.5



SELECTION CRITERIA FOR CONSTRUCTION SITES OF SCHOOLSAND TEACHER DORMITORIES

A. School Location

1. Priority for school construction will be given to locations in ruraL remote and poorareas.

2. Priority will be given to those Kabupaten, and those Kecamatan within suchKabupaten, with the lowest gross enrollment or transition rates from SD/M (primary)to SLTP/MTs (junior secondary).

3. The proposal for the construction of a new school shall take into consideration existingprivate SLTPlMTs schools in the catchment area.

4. The proposal for the construction of a project school shall be subrnitted to the Kanwilthrough an official request by the Kakandep, and such proposal shall include evidenceof land availability.

5. The request by the Kakandep for each project school shall be accompanied by a schoollocation map with the following descriptions:

a) Kabupaten and Kecamatan boundaries (include scale)b) Rivers, bridges and main roadsc) Kabupaten/Kecamatan centers, other towns and villagesd) Existing SD/[f schoolse) Existing public SLTP/MTs schoolsf) Existing private SLTPlMTs schoolsg) Proposed location of new public and private SLTP/MTs schools if knownh) Proposed location of project SLTP schools for the first year of project

6. The request from the Kakandep shall be in line with the school construction plan ofeach district, which will be reviewed and updated annually.


B. Teacher Dormitories

1. Priority shall be given to those Kabupaten, and those Kecamatan within such Kabupaten,with the lowest gross enrollment and transition rates from SD/MI to SLTP/MTs.

2. Teacher dornitories shall only be built in rural, remote and poor areas, where teachers donot have access to suitable accommodation at a reasonable distance from school.

3. The request for teacher dormitory construction shall be submitted to the Kakanwil throughKakandep, and such proposal shall include evidence of land availability and assurance ofaffordability for dormitory maintenance.



STUDENT SCHOLARSHIP PROGRAM

A. Background

Families in the lower income deciles bear large financial burdens when theirchildren attend junior secondary school, relative to the total monthly family expenditures(between 40% and 80%). These costs include school registration fees, tuition, parentalcontributions, expenses for unifroms, transport, books and other costs. Furthermore,children from poor families attending school incur additional costs in the form of foregoneincome they could earn within or outside the household. Simulations, based oneconometric modeling indicate that abolishing school fees would raise the transition ratefrom primary schools to junior secondary by 12%; subsidizing all school-related directcosts would raise the rate by 32%, primarily bringing into school those children, whoseparents value education, but cannot afford to pay.

GOI is currently operating a nationwide scholarship program covering some27,000 SLTP students. The scholarship consists of financial support amounting to RP25,000 per month for twelve months, an ample amount to cover all SLTP-related costs.A new fund distribution mechanism has recently been implemented, with funds beingdistributed through the post office. The fund provides scholarships to children of loweconomic background and satisfactory academic achievement and personality. Withinthese criteria, preference is given to children from remote areas, orphans and girls. Thefund is operating well, and though very limited, is much appreciated.

It is proposed to expand the scholarship program to cover a much larger targetgroup in the project area, so as to make a greater impact in bringing poor children intoSLTP. The current program would be augmented along the following lines: (a)scholarships would be provided to 30,000 students in East Java and 5,350 for NTT; (b)unit costs would be set at Rp 300,000 per student per year; and (c) a simple monitoringmechanism will be implemented to make sure that recipients receive their full allocationand that selection criteria are followed. By project mid-term review, the entire programwill be evaluated for impact.


B. Selection Criteria For Scholarship Recipients

1. The candidate is in grade six of primary school or is a primary school graduate.

2. Priority will be given to Kecamatan or less developed areas with low gross enrollmentrates at junior secondary education or low primary-secondary transition rates.

3. Priority will be given to students from low economic background (refer to a letter ofreference from head of the village where the student lives), to orphans and to females.

4. Preference will be given to students with good academic achievement scores validatedby the school principal.

5. The student is not receiving any other scholarship.

6. Scholarships will be awarded annually, and can be extended upon satisfactory of therecipient.

C. Scholarship Distribution and Monitoring System

1. In consultation with teacher or headmaster, eligible students will apply for scholarshipsto the head of MOEC district office (Kakandep) or to the head of MOEC provincialoffice (Kakanwil).

2. The selection, reviewing, and awarding will be performed by the ScholarshipCommittee at the Kanwil Office.

3. The scholarship recipient will receive a monthly stipend for twelve consecutivemonths, starting from July until June of the following year. Funds will be madeavailable through the post office nearest to his/her school.

4. Stipend amount will be defined by MOEC and must be agreed upon by the Bank.

5. Scholarship funds will be disbursed by the Provincial Project's account and sent to thehead of Provincial Giro Office account, who will make them available to the recipientsthrough the Post Office.

6. Post Offices will report back to the head of the Provincial Giro Office, who will reportback to the Provincial Project Manager.


7. The effectiveness of the above distribution system will be monitored quarterly byauditing the receipt forms filled out by the scholarship recipients. In addition, theScholarship Committee at Kanwil Office will monitor the system in the field byinterviewing a representative sample of scholarship recipients every year.

8. The above criteria would be applied according to an agreed weighted scoring systemusing data from agreed sources.

,.........................................................................................................

ProvinceProvincial Project Manager

Account

Provincial GiroOffice Account L

:. . . . . .. . ................................... .. . . . . . . . . . . . .......... ............ ..,.:

PostOffices

| Recipient Account

Figure 1. Distribution and MonitoringSystem of Scholarship Program

122 Annex 17


CRITERIA FOR EMPLOYMENT OF CONTRACT TEACHERS

1. The main purpose of the contract teacher program is to overcome the shortage ofteachers in rural and remote areas.

2. The application for contract teacher should be submitted by the school principal tothe district head (Kakandep). The Kakandep with his/her recommendation willforward the application to the selection committee at the Kanwil office.

3. Preference will be given to candidates with at least a D3 qualification in relatedteaching subject matters, to the existing "guru honor," and to those who residenearby the schools requesting contract teachers.

4. The contracts shall include the following conditions

a) assignment for three years to a public or private school in rural or remoteareas;

b) no claim for financial compensation upon the completion or termination ofthe contract;

c) no assurance to become a permanent teacher upon completion of thecontract

5. The duration of the contract will be three years and will be reviewed annually onthe basis of performance.

6. A contract teacher shall receive the same salary as a permanent teacher (PNS) withthe same education, qualification and experience, and shall be entitled to the samefringe benefits which the school provides to its permanent teachers.

IndonesiEast Java/lT Junior Secondary Education ProjectRemAitaxe Acconts by Canonents - same Costs

(US$ '000)

StrengtheningEducation Management Support

Increasin- access to 755 eroving Oualitv a nformation forStudent In-service Tools for Student Management Project Physical

Regular Alternative Scholarship Social Teacher Effective Performance Managerial and HhnsgiMn ZCntingnscis-fslag1xs Schools Proaram Mrketine Trinina Teachi±a An st Cmacay±Z uzilizntin Provna otaL t hAunt

I. Invas nent CostsA. Land Acquisition 4,484 - - - - - - - - - 4,4s4 - -S. Civil Works

New Construction 52,924 - - - - 5,311 - - - - 58,235C. Equipment and Furniture 7,939 210 - - - 1,357 90 407 1,109 - 11,111D. Educational Materials /a - 644 - lOS - 17,193 - 291 14 - 18,2463. Training

In-country training lb - 1,511 - - 6,045 128 190 3,392 438 - 11,704P. Technical Assistance

Domestic consultants - - - 45 - 206 40 78 5 2,239 2,613International consultants - - - - - 234 - 504 -

Subtotal Technical Assistance - - - 45 440 40 348 5 2,239 3,117G. Contract Teachers - - - - - 724 - - - - 724H. Scholarships - - 13,649 - - - - - - - 13,649I. Operating Costs /C - - --- - 54 80----s4 - 193 1 136 1 462

Total Investment Costs 65,347 2,365 13,649 150 6,045 25,206 400 4,437 1,758 3,375 122,732II. Recurrent Costs

A. Facilities maintenance 2746 - 2 ,745Total Recurrent Costs 2,746 - - - - - - - - - 2 746

Total ASELIEE COSTS 68,092 2,365 13,649 150 6,045 25,206 400 4,437 1,758 3,3's 125,478 - -Physical Contingencies - - - - - - - - - - -Price Contingencies 10 201 44a 2 91S 24 1.277 4L 531 SO 690 149 661 20 94-

Total PROJWCT COSTS 78,294 2,812 16,564 174 7,322 29,737 450 5,128 1,907 4,038 246,426 - -

Taxes 6,394 21 - - - 695 9 38 107 - 7,264 - -Poreign Exchange 23,087 497 - 24 962 5,651 113 1,102 907 535 32,879 - -

\a Include library/oupplementary books, training and media materials. \b Include in-country training, seminars and workshops.\c Includes expenditres for travel, per diem, allowances and consumable materials.

IndonesiaEast Java/MT Junior Secondary Education Project

znd±ture Accoents by Coopents - Totals Including Contingencies(US$ '000)

StrengtheningEducation Msnagement Support

Increasing Accss to JSS Imnrovina Duality Information forStudent In-service Tools for Student Managemnt Project

Regular Alternative Scholarship Social Teacher Effective Performance Managerial and UsnsginnISshools Schools --- egan Marketina TrAininL _TAchLne Aanaen _ _nAAC±x_ Utilizatin Prvinci1 _l Ttal

I. Investment CostsA. Land Acquisition 4,484 - - - - - - - - - 4,484D. Civil Works

New Construction 61,588 - - - - 6,189 - - - - 67,777C. Equipment and Furniture 8,680 230 - - - 1.448 94 412 1,179 - 12,044D. Educational Materials /a - 780 120 - 20,519 - 298 16 - 21,733E. Training

In-country training /b - 1,802 - - 7,322 152 214 4,056 496 - 14,043F. Technical Assistance

Domestic consultants - - - 54 - 242 43 s0 5 2,681 3,105International consultants - - - - - 246 - 281 - - S27

Subtotal Technical Assistance - - - 54 - 489 43 361 5 2,681 3,632G. Contract Teachers - - - - - 878 - - - - 878H. Scholarships - - 16,564 - - - - 16,564I. Operating Costs /C - - - - - 64 99 - 211 1357 1 730

Total Invs_nmnt Costs 74,752 2,812 16,564 174 7,322 29,737 450 5,128 1,907 4,038 142,884II. Recurrent Costs

A. Facilities maintenance 3 542 - - - - - - - - -Total Recurrnt Costs - - - - - - - 3a542

Total PROJECT COSTS 78,294 2,812 16,564 174 7,322 29,737 450 5,128 1,907 4,038 146,426

Taxes 6,394 21 - - - 695 9 38 107 - 7,264Foreign rxchange 23,087 497 - 24 962 5,651 113 1,102 907 535 32,879

\a Include library/suppleentary books, training and media materials.\b Include in-country training, seminars and workshops.\c Includes acpenditres for travel, per diem, allowances and consumable materials.


IndonesiaEast Java/NTT Junior Secondary Education Project

Project Components by Year(US$ '000)

Base Cost96/97 97/98 98i99 99100 oo/oi 01/02 Total

A. Increasing Access to JSERegular Schools 1,011 14,929 17,173 18,535 15,651 794 68,092Alternative Schools 133 523 529 472 472 235 2,365Student Scholarship Program - 3,412 3,412 3,412 3,413 - 13,649Social Marketing - 64 11 64 11 - 150

Subtotal Increasing Access to JSE 1,143 18,928 21,126 22,482 19,547 1,029 84,256B. Improving Quality

In-service Teacher Training 78 1,288 1,367 1,367 1,367 579 6,045Tools for Effective Teaching 64 5,861 6,998 7,006 4,200 1,077 25,206Student Performance Assessment 8 166 140 54 16 16 400

Subtotal Improving Quality 150 7,315 8,505 8,426 5,583 1,672 31,652C. Strengthening Education Management

Managerial Capacity 629 850 1,053 1,261 636 9 4,437Information Management and Utilizatin 225 738 407 _152 1552 85 178

Subtotal Strengthening Education Management 854 1,588 1,460 1,412 787 94 6,195D. Support for Project Management

Provincial 32S 675 675 675 675 350 3W375Subtotal Support for Project Management 325. 675 675 675 675 350 . 7.337

Total BASELINE COSTS 2,472 28,506 31,766 32,996 26,593 3,145 125,478Physical Contingencies - - - - - - -Price Contingencies 12 1A417 3L857 6 582L 7.775 1W301 20Q948

Total PROJECT COSTS 2,484 29,923 35,623 39,578 34,368 4,448 146,426

Taxes 24 1,522 1,809 2,033 1,868 7 7,264Foreign Exchange 438 7,572 8,160 8,704 7,433 572 32,879


Expenditure Accounts by Years(US$ '000)

ForeignBase Cost Exchange

96/97 97/98 98/99 99/00 a0/01 01/0a Total W Amount

I. Investment CostsA. Land Acquisition 1,011 1,144 1,238 1,091 - - 4,484 - -B. Civil Works

New Construction - 12,717 15,174 16,295 14,050 - 58,235 30.0 17,471C. Equipment and Furniture 268 3,279 2,700 2,569 2,232 64 11,111 70.0 7,778D. Educational Materials /a 260 4,235 4,889 4,850 2,854 1,160 18,246 15.0 2,737E. Training

In-country training /b 308 2,362 2,881 3,064 2,348 742 11,704 15.0 1,756F. Technical Assistance

Domestic consultants 285 553 525 513 501 237 2,613 15.0 392International consultants 108 234 54 90 9 9 504 80.0 403.D.

Subtotal Technical Assistance 393 787 579 603 510 246 3,117 25.5 795G. Contract Teachers - 121 241 241 121 - 724 - -H. Scholarships - 3,412 3,412 3,412 3,413 - 13,649 - -I. Operating Costs /c 234 272 272 272 272 140 1462 15 0 219

Total Investment Costs 2,472 28,328 31,386 32,396 25,799 2,351 122,732 25.1 30,755II. Recurrent Costs

A. Facilities maintenance - 177 380 600 794 794 ___2U7i 15.0 4Total Recurrent Costs - 177 3180 600 794 794 2 746.150 412

Total BASELINE COSTS 2,472 28,506 31,766 32,996 26,593 3,145 125,478 24.8 31,167Physical Contingencies - - - - - - - - -Price Contingencies _1 1 41U_7 3J857 6,582 7L775 1 303 20Z948 8.2 1.712

Total PROJECT COSTS 2,484 29,923 35,623 39,578 34,368 4,448 146,426 22.5 32,879

Taxes 24 1,522 1,809 2,033 1,868 7 7,264 - -Foreign Exchange 438 7,572 8,160 8,704 7,433 572 32,879 - -

\a Include library/supplementary books, training and media materials.\b Include in-country training, seminars and workshops.\c Includes expenditres for travel, per diem, allowances and consumable materials.

Annex 18. Page 3 of 12 125


Project Cost SummaryEast Java

% 1 Total(Rn Million) (USS '000) Foreign Base

Local Frxsian Total Local Forrign Total xzcbAnsne _sts

A. Increasing Access to JS3Regular Schools 63,266 29,779 93,045 27,244 12,775 40,019 32 48Alternative Schools 2,949 734 3,683 1,265 315 1,580 20 2Student Scholarship Program 27,000 - 27,000 11,583 - 11,583 - 14Social Marketing 198 35 1 233 85 5i lOQ 15 -

Subtotal Increasing Access to JSX 93,413 30,548 123,962 40,177 13,105 53,282 25 64

. Improving QualityIn-service Teacher Training 8,374 1,478 9,851 3,592 634 4,226 15 5

Tools for Effective Teaching 36,646 9,773 46,419 15,721 4,193 19,914 21 24Student Performance Assessment 517 182 699 _222 78 300 26

Subtotal Improving Quality 45,537 11,433 56,969 19,535 4,905 24,440 20 29

C. Strengthening Education ManagementManagerial Capacity 5,229 1,278 6,507 2,243 548 2,791 20 3

Information Management and Utilizatin 1452 4LA3 2 915 6A231 6218 1. 71 sO 1Subtotal Strengthnaing Rducation Management 6,681 2,741 9,422 2,866 1,176 4,042 29 5

D. Support for Project ManagementProvincial 3Z732 6159 4390 __1_ 11282 188 iS 2

Subtotal Support for Project Management 3,732 659 4J390 1 ..ia 601 i2s 2

Total BASELINE COSTS 149,363 45,380 194,743 64,179 19,468 83,647 23 100Physical Contingencies - - - - - - - -Price Contingencies 30,518 j2476 2,9 94 13 092 1i062 14,15Z a 17

Total PROJXCT COSTS 179,881 47,856 227,737 77,271 20,530 97,802 21 117


Project Cost SummaryEast Java

S 1 Total(Rn Million) (USS '000) Foreign Base

Toca Forig Tota Local Foeign Total Lxchann CoAst

I. Investxet CostsA. Land Acquisition 6,310 - 6,310 2,809 - 2,809 - 33. Civil Works

New Construction 57,835 24,786 82,622 24,811 10,633 35,445 30 42C. Equipment and Furniture 4,877 11,379 16,256 2,092 4,882 6,974 70 8D. Educational Materials Ia 28,118 4,962 33,080 12,063 2,129 14,191 15 17X. Training

In-country training lb 16,503 2,912 19,415 7,080 1,249 8,329 15 10F. Technical Assistance

Domestic consultants 2,844 502 3,346 1,220 215 1,435 15 2G. Contract Teachers 1,12S - 1,125 483 - 483 - 1H. Scholarships 27,000 - 27,000 11,583 - 11,583 - 14I. Operating Costs Ic 1. 527 270 1w 797 65S 116 771 1i I

Total Investmnt Costs 146,139 44,811 190,950 62,796 19,224 82,020 23 98II. Recurrent Costs

A. Facilities maintenance .. 22A 569 3 .793 1w 383 244 __i 6275i 2Total Recurrent Costs 3 1L22A 569 32793 1 383 244 ___ 6 is 2

Total BASRLINZ COSTS 149,363 45,380 194,743 64,179 19,468 83,647 23 100Physical Contingencies - - - - - - - -

Price Contingencies 30SI 518 2476 32A994 13J 092 1 06Q2 14,155 a 17Total PROJECT COSTS 179,881 47,856 227,737 77,271 20,530 97,802 21 117




Project Components by YearEast Java (US$ '000)

Base Cost96/97 97/98 98/99 99/00 00/01 01/02 TQLal

A. Increasing Access to JSERegular Schools 686 9,491 10,207 10,158 9,014 464 40,019Alternative Schools 81 359 366 317 317 139 1,580Student Scholarship Program - 2,896 2,896 2,896 2,896 - 11,583Social Marketing - 43 8 43 a -_100

Subtotal Increasing Access to JSE 767 12,788 13,476 13,413 12,234 603 53,282B. Improving Quality

In-service Teacher Training 66 897 965 965 965 367 4,226Tools for Effective Teaching - 4,773 5,281 5,414 3,512 934 19,914Student Performance Assessment 6 _123 Q105 42 12 12 300

Subtotal Improving Quality 72 5,793 6,351 6,421 4,490 1,313 24,440C. Strengthening Education Management

Managerial Capacity 235 344 760 965 487 - 2,791Information Management and Utilizatin _160 _528 289 107 107 59 1 251

Subtotal Strengthening Education Management 395 872 1,050 1,072 594 59 4,042D. Support for Project Management

Provincial 175 377 377 377 377 201. 1B83Subtotal Support for Project Management 175 377 377 377 377 120 1 883

Total BASELINE COSTS 1,410 19,830 21,253 21,283 17,695 2,176 83,647Physical Contingencies - - - - - - -Price Contingencies 6 1 009 2,632 6 4344 5,260 903 141.55

Total PROJECT COSTS 1,416 20,839 23,885 25,628 22,955 3,079 97,802

Taxes 22 983 1,123 1,160 1,140 5 4,433Foreign Exchange 240 4,909 5,181 5,167 4,643 390 20,530


Expenditure Accounts by YearsEast Java (US$ '000)

ForeignBase Cost Exchange

96/97 97/98 98/99 99/00 00/01 01/02 Total Amon t

I. Investment CostaA. Land Acquisition 686 726 726 672 - - 2,809 - -

B. Civil WorksNew Construction - 8,206 9,387 9,287 8,565 - 35,445 30.0 10,633

C. Equipment and Furniture 237 2,130 1,711 1,481 1,373 43 6,974 70.0 4,882D. Educational Materials /a 2 3,615 3,618 3,762 2,201 994 14,191 15.0 2,129E. Training

In-country training /b 218 1,626 2,089 2,248 1,692 457 8,329 15.0 1,249F. Technical Assistance

Domestic consultants 127 300 294 285 285 144 1,435 15.0 215G. Contract Teachers - 80 161 161 80 - 483 - -H. Scholarships - 2,896 2,896 2,896 2,896 - 11,583 - -I. Operating Costs /c 140 139 139 _139 139 74 771 15. 0 116

Total Investment Costs 1,410 19,717 21,020 20,931 17,231 1,712 82,020 23.4 19,224II. Recurrent Costa

A. Facilities maintenance - 113 233 353 464 464 1627 15 0___ 24Total Recurrent Costs - 13 233 _353 464 464 1 627 15.0 244

Total BASELINE COSTS 1,410 19,830 21,253 21,283 17,695 2,176 83,647 23.3 19,468Physical Contingencies - - - - - - - - -Price Contingencies 6 10092 2Z 4A344 5,260 903 141q55 7.5 1,062

Total PROJECT COSTS 1,416 20,839 23,885 25,628 22,955 3,079 97,802 21.0 20,530

Taxes 22 983 1,123 1,160 1,140 5 4,433 - -Foreign Exchange 240 4,909 5,181 5,167 4,643 390 20,530 - -



Expenditure Accounts by Comonents - Bam CostsEast Java (US$ '°000)


Increasinq Access to JSE Im-rovino Oualitv Information forStudent In-service Tools for Student Management Project Physical

Regular Alternative Scholarship Social Teacher Effective Performance Managerial and Management ContingmniesSchools Schools Program Marketing TraininS Teaching Assessment Capacity Utilizatin Provincial Total I Amount

I. Invest ent CoatsA. Land Acquisition 2,809 - - - - - - - - - 2,809B. Civil Works

New Construction 30,941 - - - - 4,503 - - - - 35,445C. Equipment and Furniture 4,641 142 - - - 1,096 60 235 800 - 6,74D. Educational Materials /a - 456 - 70 - 13,657 - - 8 - 14,191E. Training

In-country training /b - 982 - - 4,226 96 150 2,556 319 - 8,329F. Technical Assistance

Domestic consultants - - - 30 - 60 30 - 3 1,313 1,435

G. Contract Teachers - - - - - 483 - - - - 483H. Scholarships - - 11,583 - - - - - - - 11,583I. Operating Costs /c - - - - - . 19 60 - 121 57l 771

Total Investment Costs 38,392 1,580 11,583 100 4,226 19,914 300 2,791 1,251 1,883 82,020 - -II. Recurrent Coats

A. Facilities maintenance 1A627 - - - - - - - - - 1 627 - _Total Recurrent Costs 1,627 - - - - - - - - - 1 627

Total BASELINE COSTS 40,019 1,580 11,583 100 4,226 19,914 300 2,791 1,251 1,883 83,647 - -Physical Contingencies - - - - - - - - -Price Contingencies 5i849.295 25 2474 16 884 311 38 512 104 372 14 155

Total PROJECT COSTS 45,868 1,875 14,057 116 5,110 23,525 338 3,303 1,355 2,255 97,802

Taxes 3,728 14 - - - 587 6 22 77 - 4,433Foreign Exchange 13,486 333 - 16 672 4,421 81 571 652 299 20,530


0


Expenditure Account by Comonents - Totals Including ContingenciesEast Java (US$ '000)


Increasing Access to JSE ImTr-ving Ouality Information forStudent In-service Tools for Student Management Project

Regular Alternative Scholarship Social Teacher Effective Performance Managerial and ManagementSchools Schools Pro2ram Marketing Training _TsAchu a Amseasment Capacity Utilizatin ProvinciK± Total

I. Inestment CostsA. Land Acquisition 2,809 - - - - - - - - - 2,809B. Civil Works

New Construction 35,898 - - - - 5,276 - - - - 41,174C. Equipment and Furniture 5,065 155 - 1,174 63 237 851 - 7,544D. Educational Materials /a - 553 - 80 - 16,282 - - 9 - 16,924I. Training

In-country training /b - 1,168 - - 5,110 114 169 3,066 362 - 9,988F. Technical Assistancs

Domestic consultants - - - 36 71 32 - 3 1,574 1,716G. Contract Teachers - - - - - 585 - - - - 585H. Scholarships - - 14,057 - - - - - - - 14,057I. Operating Costs /c - - - - - 23 74 - 131 682 909

Total Investment Costs 43,773 1,875 14,057 116 5,110 23,528 338 3,303 1,355 2,255 95,707II. Recurrent Costs

A. Facilities maintenance 2L095 - - - - - - - - -2095Total Recurrent Costs 2095 - - - - - - - - -2095

Total PROJZCT COSTS 45,868 1,875 14,057 116 5,110 23,525 338 3,303 1,355 2,255 97,802

Taxes 3,728 14 - - - 587 6 22 77 - 4,433 Foreign Exchange 13,486 333 - 16 672 4,421 81 571 652 299 20,830


00


Project Coat SumaryEast Nusa Tenggara

(Rn Million (USS '000)t t Total t t Total

Foreign Base Foreign BaseLocal Foreign Total 8xchange rnsts Loral_ Foreign Total Exehane -Costs

A. Increasing Access to JSERegular Schools 44,152 21,144 65,296 32 69 19,002 9,071 28,073 32 69Alternative Schools 1,467 362 1,829 20 2 629 155 785 20 2Student Scholarship Program 4,815 - 4,815 - 5 2,066 - 2,066 - 5 >=Social Marketing 99 17 117 i - 43 50 15 -

Subtotal Increasing Access to JSE 50,533 21,524 72,057 30 76 21,740 9,234 30,974 30 76B. Improving Quality

In-service Teacher Training 3,604 636 4,241 15 4 1,546 273 1,819 15 4Tools for Effective Teaching 9,213 2,252 11,466 20 12 3,953 966 4,919 20 12 00Student Performance Assessment 160 73 233 32 - 69 32 ion 32 -

Subtotal Improving Quality 12,977 2,962 15,939 19 17 5,567 1,271 6,838 19 17 IlC. Strengthening Education Management z

Managerial Capacity 1,726 563 2,290 25 2 741 242 982 25 2 OInformation Management and Utilizatin 610 573 1,183 48 1 262 246 508 48 1 2.

Subtotal Strengthening Education Management 2,336 1,137 3,473 33 4 1,002 488 1,490 33 4D. Support for Project Management

Provincial 29 956 522 5 132478 15 4 12 224 1492 15 4 Subtotal Support for Project Management _.295 522 3,478 is 4 1 268 224 1i 421

Total BASELINE COSTS 68,803 26,144 94,947 28 100 29,577 11,216 40,793 27 100Physical Contingencies - - - - - - - - - -Price Contingencies 14 216 14831 1LS699 9 17 6 099 636 6,735 9 17

Total PROJECT COSTS 83,019 27,627 110,646 25 117 35,676 11,852 47,528 25 117


Project Cost SummaryEast Nusa Tenggara

(Rp Million) (USS '000)t I Total % % Total

Foreign Base Foreign BaseLocal Foreign Total Exchange rosts Local Foreign Total Exchanse Costs

I. Investment CostsA. Land Acquisition 3,760 - 3,760 - 4 1,674 - 1,674 - 4B. Civil Works

New Construction 37,187 15,937 53,124 30 56 15,953 6,837 22,790 30 56C. Equipment and Furniture 2,893 6,750 9,643 70 10 1,241 2,896 4,137 70 10 zD. Educational Materials /a 7,459 1,316 8,775 15 9 3,200 565 3,764 15 9E. Training

In-country training /b 6,638 1,171 7,809 15 8 2,848 503 3,350 15 8 0°F. Technical Assistance

Domestic consultants 1,950 344 2,294 15 2 837 148 984 15 2 tZG. Contract Teachers 563 - 563 - 1 241 - 241 - 1H. Scholarships 4,815 - 4,815 - 5 2,066 - 2,066 - 5I. Operating Costs /c -1322 233 1.556 15 2 567 _ 100 667 15 2 '4

Total Investment Costs 66,587 25,753 92,339 28 97 28,627 11,048 39,675 28 97 0II. Recurrent Costs

A. Facilities maintenance 9.216 391 2.607 15 3 951 168 1.119 is 3 Total Recurrent Costs 2.216 391 2.607 15 3 951 168 11915 3

Total BASELINE COSTS 68,803 26,144 94,947 28 100 29,577 11,216 40,793 27 100Physical Contingencies - - - - - - - - - -Price Contingencies ._J_216 1. 48 15.699 9 17 6.099 636 6.735 9 17

Total PROJECT COSTS 83,019 27,627 110,646 25 117 35,676 11,852 47,528 25 117


k)



Project Components by YearEast Nusa Tenggara (US$ '000)

Base Cost96/97 97/98 98/99 99/00 00/01 01/02 Tntal

A. Increasing Access to JSZRegular Schools 325 5,438 6,966 8,377 6,637 330 28,073Alternative Schools 51 164 164 155 155 96 785Student Scholarship Program - 516 516 516 517 - 2,066Social Marketing - 21 4 21 4 so 5

Subtotal Increasing Access to JSB 377 6,140 7,650 9,069 7,313 426 30,974B. Improving Quality

In-service Teacher Training 12 391 402 402 402 212 1,819Tools for Effective Teaching - 981 1,647 1,485 663 143 4,919Student Performance Assessment 2 43 35 12.... 4 4 100=

Subtotal Improving Quality 14 1,415 2,083 1,898 1,069 359 6,838C. Strengthening Education Management

Managerial Capacity 30 304 232 276 140 - 982Information Management and Utilizatin 65 _21 llS1U 44 44 26 __5.08

Subtotal Strengthening Education Management 95 514 350 321 184 26 1,490D. Support for Project Management

Provincial 14.9.98 28 28149 1 492Subtotal Support for Project Management _14 298 298 ---98 298 1 1.492

Total BASELINE COSTS 634 8,367 10,382 11,586 8,864 960 40,793Physical Contingencies - - - - - - -Price Contingencies 3 397 _ 211 2.220 2 507 398= 6,735

Total PROJECT COSTS 637 8,764 11,592 13,806 11,371 1,358 47,528

Taxes 3 539 686 873 728 2 2,830Foreign Exchange 64 2,461 2,922 3,454 2,778 174 11,852


Expenditure Accounts by YearsEast Nusa Tenggara (US$ '000)

ForeignBase Cost Exchancge

96/97 97/98 98/99 99/00 00/01 01/02 Total t Amunl

I. Investment CostsA. Land Acquisition 325 419 512 419 - - 1,674 - -B. Civil works

New Construction - 4,511 5,787 7,008 5,484 - 22,790 30.0 6,837C. Equipment and Furniture 31 1,149 989 1,088 859 21 4,137 70.0 2,896D. Educational Materials /a 1 621 1,236 1,088 653 165 3,764 15.0 565E. Training

In-country training /b 90 717 787 816 655 285 3,350 15.0 503F. Technical Assistance

Domestic consultants 97 202 200 197 197 93 984 15.0 148G. Contract Teachers - 40 80 80 40 - 241 - -H. Scholarships - 516 516 516 517 - 2,066 - -I. Operating Costs /c 90 .128 .128 128 128 66 667 15 O 100

Total Investment Costa 634 8,302 10,235 11,339 8,535 630 39,675 27.8 11,048II. Recurrent Costs

A. Facilities maintenance - GS 147 247 330 330 1 119 15 0.16Total Recurrent Costs - 65 147 247 330 330 1 119 __15 0 16Total BASELINE COSTS 634 8,367 10,382 11,586 8,864 960 40,793 27.5 11,216

Physical Contingencies - - - - - - - - -Price Contingencies 3 397 1 211 2 220 2 507 398 6,735 9.4 _636U

Total PROJZCT COSTS 637 8,764 11,592 13,806 11,371 1,358 47,528 24.9 11,852

Taxes 3 539 686 873 728 2 2,830 - -Foreign Exchange 64 2,461 2,922 3,454 2,778 174 11,852 - -



itpendlture Accounts by Cponents - Sass CostsEast Muss Tenggara (US$ '000)


Increasino Access to JSR Imorovino Ouality Information forStudent In-service Tools for Student Management Project Physical

Regular Alternative Scholarship Social Teacher Effective Performance Managerial and Hanaghment VonftnoencieSchools Schools Program Marketina _aia Tazhing Amsessment SCADaCty Util4±zatin Pravincial ITtal A

I. Invsstaent CostsA. Land Acquisition 1,674 - - - - - - - - - 1,674D. Civil Works

New Construction 21,983 - 807 - - - - 22,790C. Equipment and Furniture 3,297 68 - - - 261 30 171 309 - 4,137D. Educational Materials /a - 187 - 35 - 3,536 - - 6 - 3,764X. Training

In-country training /b - 529 - - 1,819 32 40 811 119 - 3,350F. Technical Assistance

Domestic consultants - - - 15 - 30 10 - 3 927 984G. Contract Teachers - - - - - 241 - - - - 241H. Scholarships - - 2,066 - - - - - - - 2,066I. Operating Costs /c - - - _ _ 11 2 765 667

Total Invsstent Costs 26,955 785 2,066 50 1,819 4,919 100 982 508 1,492 39,679 - -II. Recurrent CostsA. Facilities maintenance 1J119 - - - - - - - - - 1 -lSTotal Recurrent Costs 1119 - - - - - - - - - -Total RASELInR COSTS 28,073 785 2,066 50 1,819 4,919 100 982 508 1,492 40,793 - -Physical Contingencies - - - - - - - -Price Contingencies 4.352 153 441 a 393 884 12 156 45 291 6,735Total PROJECT COSTS 32,425 937 2,507 58 2,212 5,803 112 1,139 552 1,782 47,928 - -

Taxes 2,667 7 - - - 108 3 16 30 - 2,830Foreign Rxchange 9,601 164 - 8 290 1,014 33 250 255 236 11,852 - -


_


tyanditura Accounts by Cponents - Totals Ineluding ContingenciesEast Nuss Tenggara (US$ '000)

Strengthening SEducatio Maaeet Support

Increasing Access to JSE Ism-rvino Ouslitv Information forStudent In-service Tools for Student Management Project

Regular Alternative Scholarship Social Teacher Effective Performance Managerial snd Ia_agafnSchools Schools Program farketinq Training Teaching Agsessment CagacivX Ut±liiatin Pr ial Total

I. Invstswnt CostsA. Land Acquisition 1,674 - - - - - - - - - 1,674S. Civil Works

New Construction 25,690 - - - - 913 - - - - 26,603C. Equipment and Furniture 3,615 75 - - - 274 31 176 328 - 4,500D. Educational Materials /a - 227 - 40 - 4,237 - - 7 - 4,511E. Training

In-country training /b - 635 _ - 2,212 38 45 963 135 - 4,028F. Technical AssistanceDomaestic consultants - - - 18 - 36 11 - 3 1,107 1,174

G. Contract Teachers - - _ 293 - - 293H. Scholarships 2.507 - - 2,507I. Operating Costs lc ------- Z----- - - - - 13...... .... 25 -go......A ... 7....2 79..23Total Inretshent Costs 30,979 937 2,507 S8 2,212 5,803 112 1.139 552 1,782 46,082II. Recurrent Costs

A. Facilities maintenance 1. 447 - - - - _ - 1A447Total Recurrent Costs 1447. - - - - - - - - - 1 447Total PROJECT COSTS 32,425 937 2,507 58 2,212 5,803 112 1,139 552 1,782 47,528

Taxes 2,667 7 - - - 108 3 16 30 - 2,830Foreign Exchange 9,601 164 - 8 290 1,014 33 250 255 236 11,852



Indonesia

East Java/NTT Junior Secondary Education ProjectProject Cost Sunmary

Central DGPS

1 1 Total(Rn Million) (USS '0O0) Foreign Base

Local Fsrz±in Total Local Foraign TotAl Exchang_ Costs

A. Increaaing Access to JSEB. lproving Quality

Tools for Effective Teaching 386 485 871 166 ... 20a 374 56 36Subtotal Improving Quality 386 485 871 166 208 374 56 36C. Strengthening Education Management

Managerial Capacity 906 641 W5i7 .. 389 275 664 41 64Subtotal Strengthening Education Management 906 641 1,547 389 275 664 41 64D. Support for Project ManagementTotal BASELINE COSTS 1,292 1,126 2,419 554 483 1,038 47 100

Physical Contingencies - - - - - - - -Price Contingencies 104 31 135 45 13 Ss 23 6

Total PROJECT COSTS 1,396 1,158 2,554 599 497 1,096 45 106


Project Coat Suma,ryCentral DGPS

1 1 Total(Rn Million) ( USS '000) Foreign Base

Local Foreis _S2taL L7ocal Foreia TctQal Exchmnoe u Costs

I. Investment CoataD. Educational Materials Ia 576 102 677 247 44 291 15 28N. Training

In-country training /b 50 9 59 21 4 25 15 2P. Technical Assistence

Domestic consultants 3B4 68 452 165 29 194 15 19International consultants 235 940 .1175 101 403 504 go 49

Subtotal Technical Assimtance 619 1,008 1,627 266 432 698 62 67I. Operating Costs /c 48 8 56 20 4 24 Si 2

Total Investment Costs 1,292 1,126 2,419 554 483 1,038 47 100II. Recurrent Costs

Total BASELINx COSTS 1,292 1,126 2,419 554 483 1,038 47 100Physical Contingencies - - - - - - - -Price Contingencies 104 31 135LU 45 11 58 23 6

Total PROJECT COSTS 1,396 1,158 2,554 599 497 1,096 45 106


Annex 18. Page 11 of 12 133


Project Components by YearCentral DGPS (US$ '000)

Base Cost96/97 97/98 98/99 99/00 00/01 01/02 Total

A. Increasing Access to JSEB. Improving Quality

Tools for Effective Teaching 64 107 71 107Q 24 - _21Subtotal Improving Quality 64 107 71 107 24 - 374C. Strengthening Education Management

Managerial Capacity 364 202 60 20 9 9 664Subtotal Strengthening Education Management 364 202 60 20 9 9 664D. Support for Project ManagementTotal BASELINE COSTS 428 309 131 127 33 9 1,038

Physical Contingencies - - - - - - -Price Contingencies 4 _11 14 _1 9 2_5

Total PROJECT COSTS 432 320 146 145 43 11 1,096

Taxes - - - - - - -Foreign Exchange 135 202 57 83 12 8 497


Expenditure Accounts by YearsCentral DGPS (US$ '000)

ForeignBase Cost 8xchange

96/97 97/98 98/99 99/00 00/01 01/02 Total W Amout

I. Investment CostsD. Educational Materials /a 256 - 35 - - - 291 15.0 44E. Training

In-country training /b - 19 6 - - - 25 15.0 4F. Technical Assistance

Domestic consultants 60 51 32 32 19 - 194 15.0 29International consultants __J0 __234 54 90 9 9-- 5 80.0 403

Subtotal Technical Assistance 168 285 86 122 28 9 698 61.9 432I. Operating Costs /c 4 5 5 5 5 _ 24 15 .4

Total Investment Costs 428 309 131 127 33 9 1,038 46.6 483II. Recurrent Costs

Total BASELINE COSTS 428 309 131 127 33 9 1,038 46.6 483Physical Contingencies - - - - - - - - -Price Contingencies 4 _I1 14 ...18 9 2 5 23 .1 13

Total PROJECT COSTS 432 320 146 145 43 11 1,096 45.3 497

Taxes - - - - - - - - -Foreign Exchange 135 202 57 83 12 8 497 - -



iture Aeons by Ca_ents - Base costsContral DOPS (US$ '000)

Strengthening WEducati Support p

Increain. Access to JS _ Imroving Ou-litv Information forStudent In-service Tools or Student Managemnt Project Physical

Regular Alternative Scholarship Social Teacher Etfective Pertormance Managerial and UAnAnW rontlng-ciemSchoola S l Proram Marketing Training Teachla Aas Lset CaR&csy_ Utiliz-tin Provincal Ttal 1 MM=

I nvestn et CostsD. Educational Materials /a - - 291 - - 291S. Training

In-country training /b - - - - - - - 2S - - 25

F. T echical AssistanceDomestic consultants - - - - 116 - 78 - 194International consultants - - - - - 2 - 270 - - 504 _ -

Subtotal Technical Assistance - - - - - 350 - 348 - - 698 - -

I. Operating Costs /c - - - ---- -24- - - - -- 24 - _Total Invement Costs - - - - - 374 - 664 - - 1,038XI. Recurrent Costs

Total rASLIXE COSTS - - - - - 374 - 664 - 1,038 - -

Physical Contingencies -Price Contingencies - - - - 2- 35 - 2- - 58 _

Total PROJECT COSTS - - - - - 409 - 686 - - 1 - -

Taxes - -Foreign Exchange - - - - - 215 281 - 497


9o

IndonesiaEast Java/N7 Junior Secondary Education Project

zemditure Account by Cooents - Totals Including ContingenciesCentral DCPS (U65$ 000)

Strengthening KBducatinn Manamement Support

Increasing Access to JSB Imnroving Ouality Information forStudent In-service Tools for Student Managemnt Project

Regular Alternative Scholarship Social Teacher Bffective Performance Managerial and ManagiMnnSchoasl Schools Sroran- Marketins Training S_ah _in senenL _C r,acit Dtilizatir Provincl oto

I. Investment CostsD. Educational Materials /a - - - - - - 298 - 298

S. TrainingIn-country training /b - - - - - - - 27 - - 27

F. Technical AssistanceDomestic consultants - - - - - 135 - 80 - - 216

International consultants - - - - - 246 - 21 -522

Subtotal Technical Asistance - - - - - 381 361 - - 743

I. Operating Costs /c ------- -----------------..-. 2A -- _ __

Total Investment costs 409 686 - 1, 096

II. Recurrent CostsTotal PROJECT COSTS ----- 409 -686 -- 1.096

Taxes - - -

Foreign Exchange - - - - - 215 - 281 - - 497


INDONSIAEAST JAVA/NTT JUNIOR SECONDARY EDUCATION PROJECT

East Java ProvinceProcurement Plan

Contracting and Review Responsibilities

ContractTotal Estimated Bank Documentsvalue contract DIP/INPRES Procurement Kind of review required for

Category (US$M) quantity allocation method review by /a disbursement

1. Land acquisition 2.8 NA Kanwil NA NA NA NA

2. Civil worksSmall contract <$50,000 12.8 242 Kanwil Shopping Random post RSI/SPN SOEMedium contract >$50,000 - <$200,000 5.0 66 Kanwil NCB Random post RSI/SPN SOELarge contract >$200,000 - <$500.000 23.4 83 Kanwil NCB Prior RSI full

3. Equipment and educational materials/booksSmall contract <$50,000 1.7 75 Kanwil Shopping Random post RSI SOE XMedium contract >$50,000 - <$200,000 1.9 12 Kanwil NCB Random post RSI/SPN SOESpecific and Large contract >$200,000 6.8 10 Kanwil ICB prior TM fullLibrary books 8.3 50 Kanwil Shopping Random post RSI SOE

4. Furniture ISmall contract <$50,000 1.0 50 Kanwil Shopping Random post RSI/SPN SOEMedium contract >$50,000 - <$200,000 4.7 28 Kanwil NCB Random post RSI SOELarge contract >$200,000 (if any) 0.0 0 Kanwil NCB Prior RSI full

5. In-country training 10.0 n/a Kanwil Other Random post SPN SOE6. Consultancy service & studies

Firm >$100,000 0.7 2 Dikmenum/ Short list prior TM fullKanwil

Individual <$50,000 1.0 45 Kanwil Other Limitd prior RSI SOEOthers Dikmenum Short list Prior TM full

7. Scholarships 14.1 n/a Kanwil Other Random post SPN/RSI SOE8. Contract teachers 0.6 n/a Kanwil Other Random post SPN/RSI SOE9. Operating costs 0.9 n/a Kanwil Other Random post RSI SOE10. Facility maintenance 2.1 n/a Kanwil Other NA NA NA

Total 97.8 658

RSI = Resident Staff in Indonesia; SPN = Supervision Missions; TM = Task Manager. W

/a For random post-review, a project-financed consultant will provide assistance. For contracts subject to random post-review, one out of fivesuch contracts will be reviewed in the first year of implementation and one out of 20 such contracts in the succeeding years.

IN DONSIAEAST JAVA/NTT JUNIOR SECONDARY EDUCATION PROJECT

East Nusa Tenggara ProvinceProcurement Plan _

Contracting and Review ResponsibilitiesO

ContractTotal Estimated Bank Documentsvalue contract DIP/INPRES Procurement Kind of review required for

Category (US$M) quantity allocation method review by /a disbursement

1. Land acquisition 1.7 NA Kanwil NA NA NA NA

2. Civil worksSmall contract <$50,000 12.7 250 Kanwil Shopping Random post RSI/SPN SOEMedium contract >$50,000 - <$200,000 2.3 40 Kanwil NCB Random post RSI/SPN SOELarger contract >$200,000 - <$500.000 11.6 45 Kanwil NCB Prior RSI full

3. Equipment and educational materials/booksSmall contract <$50,000 0.6 20 Kanwil Shopping Random post RSI SOE XMedium contract >$50,000 - <$200,000 1.4 12 Kanwil NCB Random post RSI/SPN SOESpecific and Large contract >$200,000 1.6 15 Kanwil ICB prior TM fullBooks (less than $200,000) 1.7 30 Kanwil Shopping Random post RSI SOE

4. Furniture OQ

Small contract <$50,000 0.5 20 Kanwil Shopping Random post RSI/SPN SOE DMedium contract >$50,000 - <$200,000 3.2 20 Kanwil NCB Random post RSI SOE rrLarge contract >$200,000 (if any) 0 0 Kanwil NCB Prior RSI full 0

5. In-country training 4.0 n/a Kanwil Other Random post SPN SOE .

6. Consultancy service & studiesFirm <$100,000 0.0 n/a NA NA NA NA NAIndividual <$50,000 1.2 30 Kanwil Other Limitd prior RSI SOE

7. Scholarships 2.5 n/a Kanwil Other Random post SPN/RSI SOE8. Contract teachers 0.3 n/a Kanwil Other Random post SPN/RSI SOE9. Project operational costs 0.8 n/a Kanwil Other Random post RSI SOE

10. Facility maintenance 1.4 n/a Kanwil NA NA NA NA

Total 47.5 480

RSI = Resident Staff in Indonesia; SPN = Supervision Mission; TM = Task Manager./a For random post-review, a project-financed consultant will provide assistance. For contracts subject to random post-review, one out of five such

contracts will be reviewed in the first year of implementation and one out of 20 such contracts in the succeeding years.

137

Annex 20: Page 1 of 1

INDONESIA

East Java and NTT Junior Secondary Education Project

Estimated Schedule of Disbursements

IBRD fiscal year Amount per Cumulative Disbursement profile /aand semester semester amount (%)

-------------(US$ million)---------- %

FY971 2.5 /b 2.5 3 02 2.0 4.5 5 0

FY981 5.5 10.0 10 32 5.5 15.5 16 6

FY991 9.0 24.5 25 102 9.0 33.5 34 22

FY001 11.5 45.0 45 342 11.5 56.5 57 42

FY011 11.5 68.0 69 542 11.5 79.5 80 66

FY021 11.0 90.5 91 742 8.5 99.0 100 82

Project Completion Date: December 31, 2001Project Closing Date: June 30, 2002

/a Latest standard disbursement profile for education projects in Indonesia (1995)./b An estimated initial deposit to the Special Account.

IndonesiaEast Java and NTT Secondary Education Project

Organization of the Ministry of Education and Culture x

Ministry of Educationand Culture

F-~~~~~~~~~~~_

lnspectoraIe Office ol Edticational SecretariatGeneral ~~~~~~~& Cultural Research Gencral

Center forConununication B Grahis Technology Cne etr Ohr

rdrnustrationBureau >

Inspectora*tes Cent | | Center | | Centers r

Directorate General of' DirectorateGeneral Directorate General Directorate GeneralPrimary & Secondary of Higher of Non-Formal Education, ofEdtucation Education Youth, Sports Culture

H Secretariat | _~ ~ ~ ~ ~~ ~ ~~~~~~~~~~ereara Secretariat |l 9

Provincial Offices Min. oDirectorate of Directorate of Directorate of 4 other 4 Educ & Culturc (Knwil) 4 Directorates 5 DirectoratesPrina Educ Sccond. Educ. Educ. Facilities Directorates Directorates

SCs



PROJECT MANAGEMENT ORGANIZATION STRUCTURE

Tenus of ReferenceCentral Proeram Advisory Committee

Objective. To provide policy guidance to the Central Program Coordination Unitfrom the perspective of education authorities both in the Directorate of Secondary Educationand in other relevant agencies and in MOEC and other ministries, and to provide a forun fordiscussing education policy and planning issues which will have an impact on projectimplementation.

Members. Chaired by the Director-General of Primary and Secondary Education, thecommittee w.ll comprise the following members:

(a) MOEC:Secretary GeneralDirector-General, Higher EducationHead, Research and Development Office

(b) Other Agencies:Head, Bureau of Religion, Education, Culture and Sport, BAPPENASDirector-General, Binbaga, MORADirector-General, Budget, Ministry of Finance

Tasks. The tasks of the Central Progran Advisory Conmnittee will consist of:

(a) Annual coordination meetings to review project progress and discuss majorpolicy issues affecting project implementation;

(b) Annual review of provincial annual work plans and budgets;

(c) Exchange information on medium and long-term education policies and plans.


Terms of ReferenceProvincial Project Advisory Committee

Objective. The objective of the Provincial Project Advisory Committee is to ensurethat project implementation will be consistent with project objectives and Government policy.The Conmmittee will provide overall implementation guidance to the PPIU.

Composition. The Provincial Project Advisory Committee will be chaired byKaKanwil and its membership will be comprised of related agencies and institutions dealingwith the education system.

Tasks. The advisory committee will give guidance to project implementors on themerits of proposals submitted. The committee will review proposals from kabupaten andkecamatan to make sure that annual work plans are in line with implementation criteria andguidelines. This committee will work closely with the existing provincial Coordination Teamfor Nine Years Basic Education (Tim Koordinasi Wajar). The advisory committee will meet atleast twice a year, or whenever major project decisions need to be made.


Terns of ReferenceCentral Proeram Coordination Unit

Objectives. The Central Program Coordination Unit (CPCU) will have threeobjectives: (a) it will monitor overall progress, and ensure that project implementation (as itunfolds through the Annual Work Plan and Budget process) is in accordance with projectobjectives and agreed project criteria, rules and guidelines; (b) it will guide the provinces andprovide (or locate the sources of) the necessary technical assistance to ensure that the projectimplements as planned; and (c) it will cany out central program activities that may affect morethan one project.

Composition Existing staff in Dikmenum, augmented as necessary by project-financed consultants will be at the core of the management team.

Tasks, Roles and Responsibilities. The Director of Dikmenum will head the CentralProgram Coordination Unit and coordinate the overall program of expanding junior secondaryeducation. An important function of the Central Program Coordination Unit will be to monitorimplementation achievements in the different provinces through progress reports andmonitoring indicators and to keep the Government and the Bank informed in this respect.

Dikmenum's role as the national level program coordination unit will be distinctlydifferent from the roles of the provincial (Kanwil) offices. As a program coordinator, its rolewill be that of oversight and facilitation -- not implementation. Dikmenum will therefore: (a)ensure that provincial implementation focuses on achieving their agreed project objectives asmeasured through the agreed project-specific monitoring indicators; (b) assist the provinces inestablishing appropriate annual work plans and monitor that these are carried out in accordancewith agreed priorities, criteria and procedures; (c) help ensure timely preparation of regionalproject budgets (DIP); (d) assist in establishing appropriate management information systems(both financial and substantive) for use at the Kanwil level as well as at the National level; (e)disseminate information to the provinces in order to highlight promising regional approaches inthe design of Annual Work Plans and Budgets; and (f) identify or provide technical assistanceto the provinces to ensure compliance with agreed project-specific criteria, rules andregulations.

Linkages to the Provincial Teams. Dikmenum will also help design and implementnational and provincial capacity building plans as the project unfolds. This will include assistingthe provinces establish appropriate project information systems and procedures on the principlethat relevant information from one system will feed into the next system, and that there will bemeaningful back and forth flow of information across administrative levels.


Supervsory Functions. Dikmenum will have a procurement supervisory function tohelp ensure that the project is implemented in accordance with the stipulations of the LoanAgreement and the Bank's Procurement Guidelines. The CPCU will appoint procurementspecialists to provide training and technical assistance to PPIUs in the preparation ofprocurement documents and to review documents from the provinces to ensure that they are inline with project procurement guidelines.


CENTRAL PROGRAM COORDINATION UNIT (CPCU)

DIRECTOR GENERAL CENTRAL PROGRAMt World _ _ Primnary and Secondary ADVISORY

Bank Education (DGPSE) .... COMMITTEEDGPSE (Chairman)

Secretary General, MOECDG, Higher Ed, MOEC

Head, ERD, MOECHead, RECS, BAPPENAS

DG, Budget, MOF

PROGRAM DIRECTOR DG, Binbaga, MORA..................... (IETR IMNM(DIRECTOR DIKMENUM)

National AdvisorInternational Advisor

ADMISTRATION: LIAISON OFFICE:

Project Manager, Central IndonesiaTreasurer, Junior Secondary

Administration Officer, Education ProjectTechnical Officer

East Java and EastNusa Tenggara JuniorSecondary Education

National Project

~~~~~~~~~........................... . . . . . . . . ....... . . ............................................................ . . .

Province

Provincial ProjectDirectors

Note:Administration Officer:(Procurement and Disbursement)Technical Officer:(School Quality/Teacher Development,Planning and Management, SchoolConstruction, Monitoring & Evaluation


Terms of ReferenceProvincial Proiect InWlementation Unit

Objectives. In order to get the project effectively implemented, the projects will beexecuted through existing line authorities at the Kanwil level. There will be no expansion ofstaff positions: existing positions will be used, and/or converted temporarily for project use asand when necessary. Similarly, there will be no structural changes in the administrative system.

Team, Organization and Responsibilities. Project-specific task forces,commensurate with the focus and specificity of each of the provincial projects will beestablished as necessary. Each of these task forces will be composed of existing staff at theKanwil-level, and -- where appropriate -- at the Kandep level. These task forces will grow andcontract as necessary during project implementation.

KaKanwil in each Province will be responsible for project implementation. To lend afocal point to the proposed implementation arrangements, a Provincial Project ImplementationUnit (PPIU) under the overall leadership of KaKanwil, will be established in each Province.This PPIU, managed by the head of the secondary education group (Kabid-Dikmenum) or aDikmenum staff memnber working under his/her supervision, will form the core of the proposedimplementation arrangement. The manager of the PPI will be responsible for the day-to-daymanagement of the project and will report to KaKanwil on all matters pertaining to the project.He/she will also keep the project authorities in Jakarta (Dikmenum) informed about progress,including any events that threatened progress, such as the lack of human or financial resourcesto resolve emerging problems. If necessary, one full-time monitoring officer and one or twosupport staff will assist the manager of the PPIU in keeping track of implementation progress.

The PPIU will be assisted by a technical resource group in each province for theduration of the project. The duties of this group, including that of consultants, will be to assistin technical analysis of sector issues, prepare annual plans and detailed project designs,troubleshoot on an ad-hoc basis, and conduct staff training/guidance. The technical resourcegroup will have access to other staff resources (including those from IKIPs/Universities) withspecialized project-related skills.

Tasks. Under the PPrU, there will typically be the following five divisions to carry outthe following functions: (a) Procurement and Civil Works; (b) Quality Improvement;(c) Accounting; (d) Progress Monitoring; and (e) Supervision and Evaluation.

Relationship with the CPCU. Each Provincial Project Implementation Unit willwork in close liaison with the Central Program Coordination Unit in Jakarta. All officialproject correspondence with the Bank will be channelled through DGPSE, except asspecifically delegated by the Director-General.

Advisory Committee. A Provincial Project Advisory Committee (see separate termsof reference) will provide overall implementation guidance to the PPIU.


PROVINCIAL PROJECT IMPLEMENTATION UNIT (PPIU)

PROGRAMDIRECTOR

PROVINCIALPROJECT DIRECTOR PROJECT(Head, MOEC Provincial AD-VISORY

Office/ Kakanwil) COMMITTEEKakanwil (Chairman)Head, Secondary EdHead, Planning Div.Head, Facility Div.

Head, Personnel Div.Prov. Public Work,

Prov. MORA,KPKN,

BAPPEDA,PROJECT MANAGER MPS (Council for

Treasurer, Private Education)Administration Officer

Province

..........., . . .... ......... .. ........ ... ... .. . . ... . . . . . . . . . . . . . . . . . . . . . . . . .

District

DISTRICTTASK FORCE

(Head of District MOECOffice, Kakandep)

INDONESIA - EAST JAVA/NTT SECONDARY EDUCATION DEVELOPMENT PROJECTProject Activities and Implementation Plan C1

~~~ J 1971998 1999 ]2000 ]2ID Task Name Duration Start Q4 QlJQ2 0L~.i 01 02 Q3 04 01 02 03 04101 02 Q3 04 01 02

1 1 SCHOOL CONSTRUCTION 217w 4/1197 _______

2 1.1 Fiscal year 1997198 5ew 4/1/97

3 1. 1.1I Determnine school locations 4w 4/1/97 e

4 1.1.2 Site acquisition 12w 4/29/97

5 1.1.3 Design process 8w 7/22/97 P7

6 1.1.4 Bidding Procedure 6w 9/16/97

7 1. 1. 5 Contract decision 2w 10/28/97

8 1. 1.6 Bank Review 4w 11/11/97 E

9 1.1.7 Construction contract 12w 12/9/97 __

10 1.1.8 Furnish schools 8w 3/3/98 ___1

11 1.1.9 Evaluate results 2w 4/28/98

12 1.2 Fiscal year 1998/99 68w 41/198I

13 1.2.1 Determine school locations 4w 4/1/98

14 1.2.2 Site acquisition 12w 4/29/98,

1s 1.2.3 Design process 8w 7/22/98

16 1.2.4 Bidding Procedure 6w 9/16/98 Z

17 1.2.5 Contract decision 2w 10/28/98 0

18 1.2.6 Bank Review 4w 11/11/98 0

19 1.2.7 Construction contract 12w 12/9/98I_ _ _ _ _ _ _ _ _ ~~~~~~~~~~~~~~~~~~~~~zmz

20 1.2.8 Furnish schools 12w 3/3/99


22 1.3 Fiscal year 1999/00 60w 4/1/99 -

23 1.3.1 Determine school locations 4w 4/1/99

24 1.3.2 Site acquisition 12w 4/29/99

25 1.3.3 Design process 8w 7/22/99

1, 4/2/96, C:%WINPROJ%EAST.MPP

INDONESIA - EAST JAVA/NTT SECONDARY EDUCATION DEVELOPMENT PROJECTProject Activities and Implementation Plan

I 1 997 1998 1999 2000 2

I D Task Name Duration Start Q4 Q1 Q2 Q 4 Q1 02 Q3 04 01 Q2 Q3 04 QI Q 2 03 01Q 02

27 1.3.5 Contract decision 2w 10128/99

28 1.3.6 Bank Review 4w 11/11/99

29 1.3.7 Construction contract 4w 12/9/99

30 .. 8Frshsoos12w 1/6/00 1077772

31 1.3.9 Evaluate results 8w 3/30/00 I7732 1.4 Fiscal year 2000/01 60w 4/3/00

33 1.4.1 Determine school locations 4w 443/00

34 1.4.2 Site acquisition 12w 5/1/00 I77

36 i.4.3 Design process 8w 7121/00 I7 I36 1.4.4 Bidding Procedure 6w 9/1 5/00 II_

37 1.4.5 Contract decision 2w 10/27/00 i

38 1.4.5 Bank Review 4w 11/10/00 I39 1.4.7 Construction contract 4w 12/8/00 F

40 1.4.8 Fumish schools '12w 1/5/01

41 1.4.9 Evaluate result 8w 3/30/01 II42 2 SCHOLARSHIPS 2116w, 4/1197 I _______

43 2.1 Fiscal Year 1997/98 saw 4//9

U ~~~2. 1.1 Determine budget and number 1w 4/1/97

45 2.1.2 Request applications 8W 4/8/97

48 2.1.3 Selectstudents 4w 6/3/7

47 2.1.4 Provide scholarships 39w 7/1/97

48 2.1.5 Evaluate Results 6w 3/31/98m

49 2.2 Fiscal Year 1998/99 59w 411/98

50 2.2.1 Determnine budget and number 1w 4/1/98

51 2.2.2 Request applications 8w 489

52 2.2.3 Select students 4w 6//8__ __________ __________ __________

2, 4/2/96, CAWlNPROJ~EAST.MPID

INDONESIA - EAST JAVA/NTT SECONDARY EDUCATION DEVELOPMENT PROJECT Project Activities and Implementation Plan o

1997 1998 1999 2000 32ID Task Name Duration Start 040 2 03 Q4 Ql 02 03 04 101 02 Q3 4~ 01 02 03 04JQl 02

53 2.2.4 Provide scholarships 40w 7/1/98 ________

54 2.2.5 Evaluate Results 6w 4/7/99

55 2.3 Fiscal Year 1999100 59w 411/99

56 2.3.1 Determine budget and number 1 w 4/1/99

57 2.3.2 Request applications 8W 4/8/99

58 2.3.3 Select students 4w 6/3/99 I

59 2.3.4 Provide scholarships 40w 7/-1/99 1 ________

60 2.3.5 Evaluate Results Sw 4/5/0

61 2.4 Fiscal Year 2000101 59w 413/100I

62 2.4.1 Determine budget and number 1w 4/3/00

63 2.4.2 Request applications 8w 4410/00

64 ~~~2.4.3 Select students 4w 6/5/00

65 2.4.4 Provide scholarships 40w 7/1/00 ________

66 2.4.5 Evaluate Results 6w 4/5/0-1 _

67 3 MODULES FOR SMP TERBUKA 169.2w 7/1/97

68 3.1 Fiscal Year 1991798 12w 7/1/7

69 3. 1.1 Distribution of books and mater 12w 7/1/97

70 3.1.2 Tutor Training 2w 7/1/97 1

71 3.2 Fiscal Yeaul998/9 12w 7/1/98

72 3.2.1 Distribution of books and mater 12w 7/1/98 __

73 3.2.2 Tutor Training 2w 7/1/98

74 3.3 Fiscal Year 1999/00 12w 7/1 /99 I___75 3.3.1 Distribution of books and mater 12w 7/1/99

76 3.3.2 Tutor Training 2w 711 /99

77 3.4 Fiscal Year2000/01 12w 7/3/00

3,te 4/2/96, C:WNP0tAS.Milestone Rolled Up Milestone 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~L

INDONESIA - EAST JAVAINTT SECONDARY EDUCATION DEVELOPMENT PROJECTProject Activities and Implementation Plan

1997 1998- I1999 2000 2

ID Task Name Duration start 0401 Q2 Q 0 0 Q2 03 Q4 I01.02 Q3 Q Qi 02 1030Q40Q1 Q2

79 3.4.2 Tutor Training 2w 7/3/00 f

80 4 TEACHER TRAINING 200w 7/1/97

e1 4.1 Fiscal Year 1997198 43w 711197 __________

82 4.1.1 PKG Program 3w 7/1/97 0

83 4.1.2 Prinicpal Training 3w 7/1/97

84 4.1.3 Cluster School Program 40w 7/22/97

85 4.2 Fiscal Year`1998/99 43w 7/l/98 _________

86 4.2.1 PKG Program 3w 7/1/98 E.

87 4.2.2 Prinicpal Training 3w 7/1/98 ,

88 4.2.3 Cluster School Program 40w 7/22/98 ________

89 4.3 Fiscal Year 1999/00 43w 7/1/99__________

90 4.3.1 PKG Program 3w 7/1/99

91 4.3.2 Prinicpal Training 3w 7/1/99 E

92 4.3.3 Cluster School Program 40w 7/229

93 4.4 Fiscal Year200010l 43w 711100 _________

94 4.4.1 PKG Program 3w 7/1/00 E

95 4.4.2 Prinicpal Training 3w 7(1/00

96 4.4.3 Cluster School Program 40w 7/21/00 .....I..i..ZZ

97 5 TEACHER HOUSING i92.8w 41`1/97 I

98 5.1 Fiscal Year 1997/98 38w 411197 ________

99 5. 1.1 Determine number and locatio Bw 4/1/97 FZ2;Z

100 5.1.2 Build dormitories 24w 5/27/97.


102 5.2 Fiscal Year 2000/01 3w 4/1/00 ________

103 5.2.1 Determine number and locatio 8w 4/1-/00 -

104 5.2.2 Build dormitories 24w 5/26/00 I77277

Task 777777- Summary Rolled Up ProgressProject: EAST JAUd/NTr SECONDADate: 4/2196 Progress ~E Rolled Up Task

Milestone Rolled Up Milestone 0 %

4, 4/2/96, CAWINPROJEAST.MPP j

INDONESIA - EAST JAVA/NTT SECONDARY EDUCATION DEVELOPMENT PROJECTProject Activities and Implementation Plan

1997 1998 1999 2000 12ID_ Task _____Name_____ Duration str 01 2 03 04 Qi 2 03 04 Qi 0 3 04 Q 2 03 0 1

105 5.2.3 Evaluate results 1//0

106 6 SCHOOL LIBRARIES B0w 6/1198

107 6.1 Determine number and location 8w 6/1 /98 _

loU 6.2 Build libraries 24w 7/27/98 rzzzzz

109 6.3 Evaluate results SW _ _19

110 6.4 Provide books 40w 3/8/99 ________

ill 7 SCIENCE EQUIPMENT 100w 4/1/97 -

112 7.1 Experiment with teaching approaches 100ow 4/1/97 P77-7777=

113 7.2 Provide teacher kits 12w 4/1/98 __

114 8 MANAGERIAL TRAINING 60.2w 110)1/97

115 8.1 Fiscal Year 1997/98 Bw 10/1/97

116 8.1.1 Training of Kanwil and Kandep 8w 10/1/97

117 8.2 Fiscal Year'1998199 8w 10/1/98 I I I118 8.2.1 Training of Kanwil and Kandep 8w 10/1/98

119 9 INFORMATION MANAGEMENT 236w 101/E

120 9.1 Technical Assistance 100ow 10/1/96

121 9.2 Training 210w 4/1/97 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

122 10 COMPUTER AND OFFICE EQUIPMENT 52w 1/1/98

123 1 0.1I Computer Equipment 52w 1/1/98 __________

124 10.2 Office Equipment 24w 1/1/98.1____________________

5, 4r2/9, C:%WINPROJFiEAST.MPP

INDONSIA

EAST JAVA/NTT JUNIOR SECONDARY EDUCATION PROJECT

Technical Assistance Summary

Status of TOR (Date) Short Ust (Date) Standard ResponsibilityType of TA Actvity Purpose/Objectives Implementing Total Cost Person contract for superAsion

Agency (US$'000) month preparedPrepared Expected Prepared Expected (Y/N) /a RSI HQ

A. Institutional CapacityBuilding

1. Managementtraining: Improve planning and CPCU/PIUs 350 15 (I) 05/96 (D) TBD y Xneeds assessment, management capacity at the 26 (D) 05/96 (D) TBD Y Xtraining program design, central, Kanwil, Kandep,materials production Kacamatan and school levels.and TOT. Preparation ofeducabon managementhandbooks

2. Student performance Improve students' achievement Kanwils/ 40 16 (D) 09/96 TBD yassessment through improved teaching MOEC 09/96 TBD Y

3. Information management Strengthen analytical capacity MOEC/ 5 2 (D) 03/96 (D) TBD Y Xand utlization of management informaton and Kanwils I

data at all levels X

B. Policy Development 4-Science educaton Identbfy the most suitable educ- MOEC/ 439 13 (I) 03/96(D) TBD Y Xstudy ation strategy to teach JSE Kanwils 84 (D) 03/96(D) TBD Y X

science and technology education

C. Implementationsupport

1. Social marketing Production and dissemination PPIU 45 18 (D) 09/96 TBD Xof educaton messages

2. Management and Assist in overall project PPIU 1080 360 (D) 09/96 TBD Y Ximplementation management

Assist Kandep in project PPIU 798 530 (D) 09/96 TBD Y Ximplementabon

3. Monitoring & evaluabon Annual monitoring and PPIU 360 120 (D) 09/96 TBD Y Xmid-term review

Total /c 3,117 1,184

/a Standard contract form is available at RSI. u'/b This task is currentty under review and cost estimates will be revised./c Baseline coats.NOTE: I = Intematonal consultants; D = Domestc consultants.

152 Annex 25: Page I of I


SUPERVISION PLAN

September 1996 Project Launch Education Specialist 2Workshop Implementation Specialist 2

Human Resource Economist 1

April 1997 Review of East Java Education Specialist 2.. ~~~~~~~~~~~Ipple.enTaTpion.Specialist 2

............................................................................................................... ........ .................................................................................... ................. .......... ...................................

September Review of NTT Education Specialist 2Implementation Specialist 2

April 1998 Review of East Java Education Specialist 2Implementation Specialist 2

......................................................................................................................................................................... ............................................... .......................................................................

September Review of NTT Education Specialist 2Implementation Specialist 2

April 1999 Review of East Java Education Specialist 2.. ~~~~~~~~~~~~~Implementation Specialist 2......................................................... ...................I.......................................................................................... .. ................................... ........... ......................................................................

October Mid-term Review of Education Specialist 2both provinces and Implementation Specialist 2plan for last years Human Resource Economist 2

April 2000 Review of NTT Education Specialist 2.. w~~~~~~~Ip.1m~!ion Speils 2..... .............. I........................................................................................... ........ ............................................................................................... ..............................................

September Review of East Java Education Specialist 2Implementation Specialist 2

April 2001 Review of NTT Education Specialist 2

........ ..... ..................................................................................... .......... .............................Ima.lem tto pcait............October Implementation Education Specialist 2

Completion Report Implementation Specialist 2Human Resource Economist 2

._.............. .. __



PROJECT PROGRESS MONITORING AND REPORTING

Introduction

1. This Annex describes how project progress will be monitored and impact will beevaluated. Reporting on monitoring and evaluation results will be done within the context ofBank progress reporting. Project progress reporting will be on a semi-annual cycle. The half-yearly progress report will cover the project status (physical progress, financial andperformance status) and will include status of the performance indicators. The program reportwill be prepared in advance of the half-yearly Bank supervision missions. Details of progressreporting are described here.

Project Monitoring Indicators

2. Project status will be monitored through performance and output indicators (seeAnnex 13). Project progress and performance will be monitored on the basis of several typesof indicators:

(a) Progress Monitoring Against the Implementation PlanAnnex 23 (Implementation Plan) gives information on the milestones, dates and tasksto be carried out during the implementation process. At each supervision mission,these will be reviewed, their status assessed, and the Plan updated to reflect progress.The updated version of the Implementation Plan would indicate actual versus plannedimplementation and show adjustments made accordingly.

(b) Ouantitative IndicatorsIn each progress report and at each supervision, the indicators as listed in Annex 13will be reviewed. The actual against planned data will be filled out by the PIUs, andwill be discussed during supervision.

(c) Qualitative IndicatorsAt each supervision mission, an evaluation will be undertaken by the supervisionteam of progress regarding qualitative indicators. The PIUs will mention, in theprogress report, the status of these indicators, which will then form the basis for thesupervision discussion. For each indicators, specific evidence of progress should beprovided.


Format of Progress Report

3. The half-yearly progress report should be organized in the following way and shouldinclude the following sections:

(a) A narrative section describing progress of each of the components: Issues thathave arisen, problems, delays, suggested changes, decisions made in the last year should beincluded for each relevant component.

(b) An update of the indicators: Actual status against planned implementation,quantitative and qualitative indicators.

(c) A section listing the recommendations and agreements made during the last Banksupervision mission and actions or present position.

(d) A list of all contract activities expected during the next year and half-year.(e) A set of tables covering the following:

* Expenditures to date (SAR plan and current status) shown by category ofexpense and by component and status of civil works (number of contracts,location, type of school covered and cost for each contract);

* Training activities (SAR plan and current status): number and type oftraining courses, number of participants, duration of each course, cost ofeach course;

* Status of Technical Assistance contracts (foreign and local): number ofperson/months planned and currently used, costs of contracts and status ofdisbursement.

(f) A report from the auditing consultants (whenever available).

Additional Reports and Reviews

4. A few special reviews will also be carried out during project implementation, to furthersupport monitoring of progress. These reviews will be carried out by independent externalconsultants and will be managed by the Project Coordination Unit in Dikmenum.

(a) Survey, in preparation for mid-term, to evaluated progress in improving managementskills and processes in Kanwils and Kandeps;

(b) Annually, a review of expenditures of government funds by private schools;(c) Annually, monitoring of the effectiveness of the scholarship fund selection and

distribution; and(d) At mid term, a review of the effectiveness of the contract teachers program.

Supervision Schedule

5. Supervision missions will be held twice a year, during the project implementation period.A planned mission schedule is listed in Annex 25. The mid-term review mission will consist ofa more thorough review; this mission will review overall progress since the beginning of theimplementation period, and will evaluate the need for adjustments or restructuring of the projectfor the remainder of the project period.



TERMS OF REFERENCE FOR TECHNICAL AUDITS

Objectives

1. To ensure the accountability to the Government, the World Bank, the participantcommunities and all stakeholders involved, a Technical Audit of the various project componentswould be conducted annually (see para. 5.1 1). The goal of the technical audits would be to provideimpartial assessment of quality and efficiency of the methods and procedures employed by PIUs inthe provinces and the PCU at central MOEC in the implementation of the project and the impact ofthis at school and administrative levels.

Team Composition, Qualification and Leadership

2. Independence and Expertise. The technical audit would be carried out by independentconsultants with no association with the project and with qualifications and experience in: (a) theoperations and management of junior secondary schools, including open junior secondary schools;(b) teacher training strategies and assessment; (c) use of library books and other educationalresources; (d) use of other instructional materials; (e) student examinations and performanceassessment strategies, techniques and dissemination; (f) location and adequacy of schoolconstruction; (g) selection and management of scholarship program; (h) science education at juniorsecondary level; (i) development of social marketing instruments; and (j) provincial, district, andschool management practices.

3. Qualification of Team Members. The Technical Audit Team (TAT) members musthave the academic qualification and demonstrated expertise in one or more of the areas identifiedabove (para. 2). To this end, they would be required to submit: (a) a signed curriculum vitae, anda copy of major diplomas; (b) a letter of acceptance to act as member of the TAT; and evidence ofno commitment to other job during the period of the contract.

4. Team Leadership. Even though characterized by an interdisciplinary approach theTechnical Audit team would be required to have a leader to coordinate the operation, its efficiencyand quality of the final products.

Scope and Procedures

5. The overall purpose of the technical audit is to identify those processes and outcomeswhich are not easily captured by the annual missions or financial audits (which they are notsupposed to replace). The following activities can be mentioned as typical examples of theconcerns addressed by TAT: the educational interaction at classroom level and the best utilizationof teacher's time; what and how students are learning in classroom; how educational resourcematerials are being used in everyday school life as a complement to classroom activities; thedevelopment of the science education study in the selected. Their evaluation would be guided by


would be guided by the project's performance indicators. schools of East Java and NTT; how andwith what results the "Open" SMP are working in the rural areas; what instruments (and withwhat success) are being developed to implement the social marketing strategy.

Description of Tasks

6. Regular and Open SMPs. The team would assess how effectively the different sizes ofregular SMPs operate in both the rural and urban areas, especially with reference to the types ofphysical facilities and teachers provided to the schools. A detailed study of the open SMPswould also be made to assess their effectiveness in providing junior secondary education, and toidentify the most appropriate ways of providing this type of education in a cost-effective manner.

7. Teacher Training Strategies and Assessment. The team needs to assess how PKGtraining has changed to incorporate lessons recently learned and new strategies developed toensure that delivery strategies are modified appropriately to fit variety of conditions in the projectprovinces. These strategies could include the following points: the participation of headmastersto the training undergone by their teachers as a requirement for better feedback, supervision andassistance when back in school; the establishment of a follow-up process to make teacher traininga continuum rather than a one-shot operation; inclusion of instruction on textbook use and use ofthe new instructional material (including the library) in the new training.

8. Use of Educational Resources. Three types of books (reading, reference andsupplementary) are to be distributed under the project, and teachers and headmasters are expectedto participate in their selection. The TAT will verify that books distributed matched theexpressed choices of teachers and headmasters. Also, their adequacy in terms of attractivenessand interest for young readers, as well as their actual uses by students and teachers, need to beassessed by the TAT. This survey will include the reading material provided to SMP Terbuka,and particularly their user friendliness. The use of educational technology for reference andteaching would also be examined carefully to evaluate their potential use in the country.

9. Use of Instructional Material. The TAT will survey the distribution of instructionalmaterial to insure that teachers and headmasters were consulted prior to purchase, that thereceived material met their expectation, and is effectively used in classroom activities. How theuse of this material is positively affecting student learning should be assessed in loco.

10. Student Assessment System. The TAT will focus its analysis on how studentassessment is conducted in classroom, data reported to provincial level, and feedback providedback to schools and classrooms for the benefit of each teacher and the corresponding students.Analytical capacity at Kanwil level to study these data and managerial capacity to disseminatethem are key issues of interest, as well as the use of these assessments by teachers to change andimprove their teaching methods.

11. Construction Site and Adequacy. For each province, the TAT will verify that schools,and dormitories for students and teachers built under the project were consistent with the agreedcriteria for site selection. Adequacy of these constructions should be the object of observationand dialogue with teachers, students and communities. Three- and six-classroom schools in therural areas constitute an innovation that deserves careful assessment by the TAT.


12. Scholarship Program. The team will verify in their visits to schools that students wereawarded scholarships under the program according to agreed criteria and conditions, andparticularly the wide advertisement of the awarding processes. This will be done through areview of sample award documents, documentation related to the flow of information amongconcerned parties, and a spot check of recipients to ensure that the full scholarship is actuallyreceived and used as intended.

13. Science Education Study. The TAT will verify that the several components necessaryfor the success of the study have been organized as specified in the detailed Terms of Referenceprovided for the implementation of the study, and that consistency is maintained from year toyear. It will also ensure that the proper methodology is being followed for the analysis of finaldata. The TAT will also evaluate the utility of the different packages of equipment provided tothe different categories of schools with respect to their contribution to improvements in scienceteaching, cost, and ease of use, maintenance and replacement.

14. Management Practices and Changes. The TAT will ensure that the proper staff arereceiving the technical and managerial training at provincial, district, and school levels, and thattrained staff receive posting consistent with their newly acquired skills. It will also ensure thatequipment provided under the project is actually used as intended.

Contract and Assistance

15. A contract will be signed between the Project Coordination Unit (PCU) at Dikmenumand the selected audit team for a month a year starting in 1997. The PCU will be responsible forTAT's schedule and follow-up. In the provinces the two PIUs will provide the assistancerequired for a timely and adequate schedule of visits and contacts, including remote project areas.

Duration and Expected Product

16. The TAT will survey implementation's progress in the second, third and fourth years ofthe project, and each survey is expected to be realized in a month. The TAT will provide itsreport to the PCU, the PIUs and the World Bank for review and comments before issuing a finaldocument. The TAT will also ensure that implementation of recommendations issued by PCU orthe Bank after analysis of the progress reports are actually implemented in the following year.The first audit shall not start before 18 months after the project started.

158 Annex28: Page lof 2


SELECTED DOCUMENTS AVAILABLE IN THE PROJECT FILES ANDRELEVANT BIBLIOGRAPHY

Provincial Proposals

Ministry of Education and Culture, Provincial Office of the East Java Province, Proposalfor the Project of Junior High School Expansion and Enhancement in the Oualityof High School in the East Java Province, Surabaya, January 1996

Ministry of Education and Culture, Provincial Office of the East Nusa Tenggara Province,Proposal for the Project of Junior High School Expansion and Enhancement in theQuality of High School in the East Nusa Tenggara Province, Kupang, December1995

JGF-funded Support Papers

Apergis S., The Case for Support of Private Education, Working Paper, 1995

Apergis S., Raising Demand for Junior Secondary Education Among the Poor inIndonesia, Working Paper, 1996

Dhanani S., Demand for Junior Secondary Education in Indonesia, Working Paper, 1996

Haribowo H., Consultancy Report Examinations, Working Paper, 1995

Mahady R., Nielsen D., Somerset A., Wardani I., Secondary Education in Indonesia:Strengthening Teacher Competency and Student Learning, Working Paper, 1996

Nasution, N., Initial Findings and Recommendations on Science and TechnologyEducation in Secondary School, Working Paper, 1996

Richardson P. and Syamsun M., Junior Secondary Education Project: InformationManagement and Utilization, Working Paper, 1996

Suyata, Community Participation in Secondary School Program, Working Paper, 1995

Other Documents

Boediono & Hidayat Syarief, Pendidikan dan Pertumbuhan Ekonomi (Education andEconomic Growth), Jakarta, 1996


Education Consortium, Department of Education and Culture, Project Proposal.Secondary School Teacher Development Project, 1994

Ministry of Education and Culture, Departemen Pendidikan dan Kebudayaan, Modul SMPTerbuka, Bahasa Indonesia, 1994-95

Ministry of Education and Culture, Departemen Pendidikan dan Kebudayaan, Modul SMPTerbuka, Matematika, 1994-95

World Bank/OED, Indonesian Education and the World Bank: An Assessment of TwoDecades of Lending, Report No. 9752, June 1991

World Bank, Indonesia Growth. Infrastructure and Human Resources, Report # 10470-fND, May 1992

World Bank, Regional Manpower Planning and Training Project, Manpower and HumanResource Development in East Nusa Tenggara, June 1994

World Bank, Regional Manpower Planning and Training Project, Provisional Data Tables,December 1995

World Bank, SAR, Indonesia Secondary School Teacher Development Project, January1996

Relevant Bibliography

Dick, H., Fox, J.J., Mackie, J., Balanced Development, East Java in the New Order,Oxford University Press, 1993

Frederick, William H., Indonesia. a Country Study, Federal Research Division, Library ofCongress, 1993

Liliweri, Alo & Neonbasu Gregor, Dynamics and Challenges of Development in the EastNusa Tenggara

Ministry of Home Affairs, The Eastern Islands Regional Development Study, May 1994

World Bank, Jandhyala B.G. Tilak, Education and Its Relation to Economic Growth.Poverty, and Income Distribution, WBDP 46, 1989

World Bank, The East Asian Miracle. Economic Growth and Public Policy, 1993


INDONESIAEast Java And NTT Junior Secondary Education Project

NAMES OF PEOPLE INVOLVED IN PROJECT PREPARATION

I. Central (Dikmenum)

1. Z.A. Achmady Director General of PSE2. Boediono Director of Dikmenum3. Baedhowi Head of DGPSE Planning Division4. Sungkowo Head of Sub-Dit Monitor5. A. Riyanto Head of Sub-Dit SMA6. Ramidjo Head of Sub-Dit SMP7. Bambang Irianto Pimpro PPAAIPA/PKG8. Shafiq Dhanani Coordinator of Consultants9. Mohammad Ali Consultant

H. Kanwil of East Java

1. M. Atlan Head of Kanwil2. M. Soegiarto Former Head of Kanwil3. M. Noerdin Chair of Bagren4. Supaat Chair of Dikmenum5. Khairul Anam Kanwil Staff6. Jhodi Simanungkalit Kanwil Staff7. Endang Kanwil Staff8. Wasono Adi Kanwil Staff

III. Kanwil of NTT

1. Cornellius Mbeo Head of Kanwil2. John Manulangga Chair of Bagren3. Suwardi Chair of Dikmenum4. George Paulus Kanwil Staff

IV Technical Assistants at Dikmenum

1. Bambang Suwarno2. Purwanto3. Nur Thidayat4. Budiyanto


V PHRD Preparation Consultants

1 Jim Antoniu Physical Infrastructure2. Stavros Apergis Economic Analysis3. Betsy Balzano Teacher Training4. Vincent Fruchart Project Assistant5. Herwindo Haribowo National Examinations6. Carlos Heymans Physical Infrastructure7. Bambang Irianto Teacher Competency and Student

Learning8. Archie Lapointe Student Performance Assessment9. Rusty Mahady Teacher Competency and Student

Learning10. Colin Moyle Planning and Management11. Noehi Nasoetion Science Education12. Dean Nielsen Teacher Competency and Student

Learning13. Paul Richardson Information Management and

Utilization14. Tony Somerset Teacher Competency and Student

Learning15. Suyata Community Participation16. Mohammad Syamsum Information Management and

Utilization17. IG A.K. Wardani Teacher Competency and Student

Learning18. Rachmat Wiradinata Planning and Management

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