Professional human resource development project
  Report No: ; Type: Report/Evaluation Memorandum ; Country: Indonesia; Region: East Asia And Pacific; Sector: Institutional Development;
                                       Major Sector: Public Sector Management; ProjectID: P003963


Indonesia: Professional Human Resource Development Project (Loan 3134-IND)

The Indonesia Professional Human Resource Development project supported by Loan 3134-IND for US$117.5
million was approved in FY90. The Loan was closed as scheduled on March 31, 1995, and the balance of US$1.3
million canceled. The Implementation Completion Report (ICR) was prepared by the East Asia Regional Office.
The ICR provides a clear and comprehensive account of the implementation of the project. The Borrower's full
report on the implementation and achievements of the project is included as Appendix B.

The project was to help the Government improve: (a) human resource policymaking and planning; (b) the quality
of professional, technical, and managerial staff to ensure improved performance in policymaking and
implementation in critical areas of economic development; and (c) the quality of scientific and technological
research as well as its management. To help fulfill these objectives, the project financed overseas fellowships for
the retraining of civil servants, which were administered by the Science and Technology for Industrial
Development agency, the Ministry of Finance, and the Overseas Training Office. It also financed some hardware
(civil works and equipment) as well as technical assistance for the agencies that administered the program. Action
plans to strengthen the quality of scientific and technological research were developed.

Despite limited implementation capacity in one management unit, the project attained most of its immediate
objectives without major difficulties. Studies were carried out to determine areas of staff development and criteria
for candidate selection. Approximately 2,500 civil servants (15 percent women) received post-graduate training in
various countries. About 900 were in non-degree programs. The overwhelming majority completed their studies
and returned to Indonesia, where they were given positions of responsibility. Though the net present value of
fellowships cannot be directly measured, previous surveys of managers suggest that fellowships are likely to have a
substantial and long-lasting effect on the economy.

The Operations Evaluation Department agrees with the ratings in the ICR. The outcome of the project is rated as
satisfactory. Institutional development is rated as substantial, and sustainability as likely, given the expected
impact of the trainees on their fields of work. The performance of the Bank is rated as satisfactory.

The project shows that overseas fellowship programs can be implemented successfully and with minimal brain
drain if planned carefully, if contact is kept with students during their studies, and if returnees are placed in
positions of appropriate responsibility. The inclusion of private citizens in addition to public servants might
enhance the effects of training on the economy.

Overall, the ICR is satisfactory and refers to future operational plans, which include a follow-on project. However,
the ICR omits a discussion of female participation issues in the scholarship program, despite the fact that only 15
percent of the recipients were women. An audit is planned.