The World Bank Report No: ISR6349 Implementation Status & Results Indonesia Indonesia - BOS Knowledge Improvement for Transparency and Accountability (P107661) Public Disclosure Copy Operation Name: Indonesia - BOS Knowledge Improvement for Transparency Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 07-Jun-2011 and Accountability (P107661) Country: Indonesia Approval FY: 2009 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Directorate General for Basic Education Key Dates Board Approval Date 07-Oct-2008 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date Last Archived ISR Date 07-Jun-2011 Effectiveness Date 11-Nov-2008 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to improve access to quality education in Indonesia for all children of ages 7 to 15 by strengthening school-based management and community participation, improving existing fiduciary arrangements for greater transparency and accountability of the BOS program and, consequently, bringing about better utilization of BOS funds. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost BOS Grants 500.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview BOS-KITA AF continues to strengthen BOSNAS with improved fiduciary standards and increased transparency and accountability. Progress has been satisfactory within GoI’s existing policy environment and institutional arrangements. As of March 99.97% of the SIL has been disbursed. The PDO is relevant and achievable: BOS has made a vital contribution to improving access to basic education for all children with reduced in-school costs, and a decrease in real costs faced by poor households. At primary and JSS levels (i) NERs have increased slightly by +/- 1%, since 2006 with those for the poorest quintile increasing significantly, narrowing the gap between the wealthiest households by 13 percentage points; (ii) Drop-out rates have declined, particularly at primary level (above project target); (iii) Transition Page 1 of 7 The World Bank Report No: ISR6349 rates increased, particularly at JSS level (above project target). In 2011, GoI moved to a decentralized dual system model for fund disbursement to schools – a massive change institutionally for MoEC and MoHA. MoF disbursed BOS funds to District accounts on time but there were significant district level disbursement delays. This was due to overarching MoHA financial management compliance requirements with regard Public Disclosure Copy to the separate and different fund flow mechanisms for public and private schools. The complicated 2011 disbursement system also reduced the involvement of School Committees (SC) in the preparation of annual budget plans and approval of expenditure reports. The system did however ensure that schools had School Improvement Plans (SIPs), prepared in close consultation with District BOS Management Teams. Knowledge about BOS objectives increased but there was no significant improvement in the percentage of schools displaying the school plan and up-to-date expenditure information about BOS on accessible notice-boards. GoI monitored the situation closely: in December 2011a highly successful return to the Provincial Block Grant mechanism was announced: 100% of Q1 funds were disbursed by January 19 2012 (a 22% improvement in Provincial level disbursement). The bank will provide ongoing technical guidance into a revised policy for decentralisation. GoI has been proactive in moving forward on major activities to: (i) strengthen SBM and BOS transparency and accountability, in close consultation with DPs and other stakeholders; (ii) address inequality in district and school education funding ( particularly for the poor) which continues despite MoF, MoHA and MoEC regulatory requirements that all districts provide local counterpart funds, BOSDA, to supplement BOSNAS. MoEC has requested the Bank to provide ongoing technical advisory and rapid analysis support to advance this work further. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target For Indonesian primary and junior secondary Text Value Primary Net Enrolment Rates Primary Net Enrolment Rates Primary Net Enrolment Rates: schools (disaggregated by gender, region and (NER): (NER): Total 94.96%, income quintile): % net enrollment rates Total 93.8%, Total 94.77%, Male 95.13%, Male 93.9%, Male 94.83%, F Female 94.81%, Female 93.6%. emale 94.70%. Poorest quintile 94.33% Poorest quintile 91.9% Poorest quintile 94.16% Public Disclosure Copy Date 31-Dec-2007 31-Dec-2011 31-Dec-2011 Comments Total NERs slightly above Yr2 target, note female NER and poorest quintile increases. Total junior secondary Text Value Jr. Secondary NER, Total Jr. Secondary NER, Total Jr. Secondary NER, Total 66.6%, Male 66.0%, Female 68/26%, Male 67.07%, 68.65%, Male 68.55%, 67.3%. Poorest quintile 52.4% Female 68.43%. Poorest Female 68.75%, Poorest quintile 60.03% quintile 65.39% Date 31-Dec-2007 31-Dec-2011 31-Dec-2011 Page 2 of 7 The World Bank Report No: ISR6349 Comments Total NERs 0.16% above Yr2 target. Of note is 8% rise for poorest quintile, although still below Yr2 target. Public Disclosure Copy % net drop out rates Text Value Primary 2.37%, Jr. Secondary Primary 1.64%. Jr. Secondary Primary 1.56%, Jr. Secondary 2.88% 2.49% 3.19% Date 31-Dec-2007 31-Dec-2011 31-Dec-2009 Comments Declined, particularly at primary level (above project target). % transition rates Text Value Total Primary 82.0%, Total Total Primary 81.5%, Total Total Primary 82.2%, Total Jun. Secondary 89.2% Jun. Secondary 98.8% Jun. Secondary 97.34% Date 31-Dec-2007 31-Dec-2011 31-Dec-2010 Comments Increased, particularly at JSS level; MoEC data shows these as exceeding end of project target. Average monthly household expenditure per Text Value Primary IDR 18,276 Primary IDR 31,270 Total Primary IDR 5,558 Total child on education by poorest quintile Jr. Secondary IDR 41,601 Jr. Secondary IDR58,542 Jr. Secondary IDR 16,115 Date 31-Dec-2007 04-Jun-2010 31-Dec-2011 Comments Updated values for 2006 , In 2006 prices. Susenas 2010 which includes registration will update this information. fees. Poorer households are spending more on transportation, uniforms and feessince the value of BOS in real terms has declined between 2005-9, prompting reintroduction of fees by many schools. Public Disclosure Copy Intermediate Results Indicators Page 3 of 7 The World Bank Report No: ISR6349 Indicator Name Core Unit of Measure Baseline Current End Target Improved management of BOS funds: % of Text Value 1. Funds on time 68.5%. 1. Funds on time 78% Funds on time 74%; Full fund schools 2. Full fund allocation based (BPKP); 82% (RIM) allocation based on student Public Disclosure Copy on student numbers. 84.5% 2. Full fund allocation based numbers 98%; School 3. SCs approve budget plans on student numbers. 79% Committees (SCs) approve 92.0% (BPKP); 87% (RIM). budget plans 96%; SCs 4. SCs review expenditure 3. SCs approve budget plans receive expenditure reports reports NEW (i) SC review 71% (RIM). NEW (i) SC review and and approve expenditure 4. SCs review expenditure approve expenditure report report (n/a) reports 27%; approve 60%; (ii) have a school 5. School have a school expenditure report (63%); improvement plan 55%; (iii) improvement plan (n/a) 5. Schools have SIP 57% with relevant procurement 6. Schools have procurement (RIM); plans (increase continously); plans (n/a) 6. Schools have procurement Disclose the BOS expenditure 7. Disclose the BOS plans (tbd); by category on the notice expenditure by category on 7. Disclosure on school notice board 40%. the notice board 20%. board 27% (RIM); 69% (BPKP). Date 31-Dec-2006 30-Jun-2011 31-Dec-2011 Comments 1. Significant delays with 2011 disbursement through district financial management ABPD mechanisms. 2. 82% received BOS funds according to students enrolled. 3. SC awareness increased about role in approval process but practices vary. 4. SC review and approval decreased in 2011 due to the complication of the reporting system. 5. Majority of schools have Public Disclosure Copy SIP – a pre-condition by DEO/ MoHA for BOS fund disbursement. 6. Procurement practices still considered weak. 7. School notice board information disclosure inconsistent. Ongoing monitoring and coaching by Supervisors during scheduled visits required. Page 4 of 7 The World Bank Report No: ISR6349 Increased public information and dissemination Text Value Number/type of socialization 1. 2012 distribution: 4 BOS Number/type of socialization regarding BOS: materials distributed - manual posters and 2012 Pocket materials distributed - Wider & local paper. 71% of parents book distributed by MoEC to distribution. % of parents knowledgeable on BOS, its every school. knowledgeable on BOS, its Public Disclosure Copy uses and schoolbudgets. 2. Parents knowledgeable on uses and school budgets and BOS, itsuses and school plans 80%. budgets and plans; 8%. 3. Parents who know the objectives of BOS; 52%. Date 31-Dec-2006 31-Dec-2011 31-Dec-2011 Comments 1. MoEC distributed BOS posters and pocket books to every school in January 2012. 2. Oct – Dec 2011 School Management Team national training materials (SSE, SBM, Financial Management, Character Building modules) and MoEC supplementary information disseminated (hard and soft copy). 3. Distribution of posters to sub-districts and village levels (mosques, churches, community groups to occur. MoEC advised that schools do not display materials on accessible school notice boards for the general awareness of parents. Improved monitoring and evaluation: Text Value Annual consolidated reports 1. Annual consolidated produced as a result of MIS reports produced as a result improvements - 0. Final of MIS improvements; M&E process evaluation and capacity building report Public Disclosure Copy special studies undertaken -0. completed; tools piloted. 2. Final process evaluation and special studies undertaken: SBM study completed; SMIC activities and survey completed. Date 31-Dec-2007 31-Dec-2011 31-Dec-2011 Comments Supported by DESP and BEC TF technical assistance, MoEC has worked in close Page 5 of 7 The World Bank Report No: ISR6349 consultation with WB with the following: (i) the third implementation progress review ; (ii) 4 phases of BOS Public Disclosure Copy Regional Independent Monitoring; (iii) establishment of a Complaint Handling mechanism to inform M & E; (iv) a national M & E information campaign; and (v) special studies on BOS program improvements. Data on Financial Performance (as of 13-Mar-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P107661 IBRD-75910 Closed 07-Oct-2008 08-Oct-2008 11-Nov-2008 31-Dec-2010 P107661 IBRD-79060 Effective 08-Jun-2010 23-Jun-2010 14-Oct-2010 31-Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P107661 IBRD-75910 Closed USD 600.00 600.00 0.00 600.00 0.00 100.00 P107661 IBRD-79060 Effective USD 500.00 500.00 0.00 499.82 0.18 100.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR6349 Public Disclosure Copy Key Decisions Regarding Implementation 1. GoI December 2011 decision to revert back to the Block Grant system through Provincial BOS management teams in 2012. 2. 7 districts are still to disburse: Q3 (2 districts); Q4 (5 districts). BPKP will investigate those districts to see if funds are still in the single local government bank account or, used to finance other local government priorities. Restructuring History Level two Approved on 03-Nov-2011 Related Projects P119125-Indonesia - Add'l Financing BOS Knowledge Improvement for Transparency and Accountability Public Disclosure Copy Page 7 of 7