1. ASSESSING PROGRAM DESIGN AND IMPLEMENTATION: INDONESIA’S RECENT EXPERIENCE
Forum on National Plans and PRSPs in East Asia
Vientiane, Lao PDR, April 4-6, 2006

2. Introduction
Qualitative program assessment resulted in mid-course refinement in design of program and aspects of its implementation
Other program assessments undertaken following same approach but incorporating quantitative analysis

3. Fuel subsidies were taking funding away from pro-poor sectors
2004 Budget
Source: APBN 2004 and APBDI+II realized budgets for 2003 consolidated.

4. Moreover, they primarily benefited the non-poor
Source: SUSENAS 2003

5. Fuel subsidy was reallocated to fund programs that benefit the poor
4. Infrastructure
3. Health
2. Education
1. Social Protection
Village Infrastructure
Basic Health Care and Hospital Insurance Poor
Operational Aid to Schools
Unconditional Cash Transfer

6. Unconditional Cash Transfer (UCT)
Program Description and Size:
Cash transfer to 15.5 million poor and near-poor families to compensate them for inflationary effects of the fuel price increase
The biggest coverage of any unconditional cash transfer program, compare to Brazilian’ UCT (Bolsa Familia) which covers ± 8 million poor households
Each beneficiary family receives Rp per month, paid quarterly, for 1 year period (Oct 2005 to Sep 2006)

7. Operational Aid for Schools
Program Description and Size:
The objective of the program is to provide block grants to schools so they can reduce the pupil’s contribution, but also allow the school to maintain the quality of educational services (including books, equipment, and uniform, and transport)
The size of the grant to schools is based on enrollment and school level: for primary schools– Rp. 235,000 /pupil/year, for junior secondary schools– Rp. 324,500/pupil/year
The target is 40.6 million students

8. Basic Health Care and Health Insurance for the Poor
Program Description and Size:
The objective is to increase access and health service quality to all people in particular to the poor so as to achieve better health outcomes
The program is designed to cover:
Free of charge health services at public health clinics, and;
Free in-patient treatment at Third Class hospitals for the poor
The target is 60 million poor and near poor people

9. Rural Infrastructure Program
Program Description and Size:
The objective is to enhance village level infrastructure through participatory decision-making at local level and at the same time create employment for the poor in 12,835 poor villages, which each village gets Rp. 250 million
Block grants are provided at the village level for the construction of roads, bridges, clean water, rural irrigation, and other infrastructure facilities to be decided by the local community

10. Reasons for UCT Assessment
Largest program of its kind in the world
Rapidly implemented in order to reduce impact of fuel subsidy reduction and therefore the program design and institutional framework were prepared hastily
Reports of public dissatisfaction in some areas indicated the program may be experiencing problems

11. Rapid UCT Assessment
Assessment carried out by 2 independent Indonesian research institutes
Qualitative assessment in 10 provinces, not intended to be nationally representative, but rather indicate “good and bad practices in implementation and program design”
Assessment focused on:
Targeting
Program Socialization
Distribution of Beneficiary Card
Funds Distribution
Complaints Handling

12. Results
Targeting – problems with registration and lack of verification – leakages to non-poor households
Program Socialization – patchy – public did not understand program objectives or criteria for beneficiaries
Beneficiary Cards – lack of verification
Funds Distribution – generally good, some regional innovations in scheduling and socialization of schedules
Complaints Handling – no formal complaint mechanism available in most areas

13. Impact of Qualitative Assessment
The Government used the results of the qualitative assessment to re-design the program for the second tranche of payments through:
More intensive socialization of program objectives and poverty criteria
Opportunity for households to register themselves for the program
Announcement of draft list and public hearing
Data verification and revision on beneficiary list
Door-to-door distribution of beneficiary cards
Establishment of sub-district level complaints posts

14. EVALUATION STRATEGY Quantitative and Qualitative Results Combined
DEC 05
Line Ministries Program Monitoring Reports
UCT QUALITATIVE ASSESSMENT
JAN-APR 06
QUALITATIVE ASSESSMENTS
1. HEALTH EDUCATION
3. VILLAGE INFRASTRUCTURE
Household Level Survey –
Susenas
Focus on Health, Education and UCT
Household and Facility Level Survey -
GDS
MAY-SEPT 06
Quantitative and Qualitative Results Combined

15. Quantitative and Qualitative
EXPECTED RESULTS
Quantitative and Qualitative
Information on:
PROGRAM DESIGN
Regulations
Guidelines
Operational Manuals
Targeting Strategy
PROGRAM IMPLEMENTATION
Socialization
Disbursements and Leakages
Funds Utilization
Implementation (e.g. community participation)