Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Project Number: 33409 November 2006

Indonesia: Technical Assistance for Preparing the Decentralized Senior Secondary Education Project (Financed by the Asian Development Bank)

Prepared by British Council

For Asian Development Bank

Table of Contents

I. THE PROPOSAL 1 II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS AND OPPORTUNITIES 1

A. Performance Indicators 1 B. Sector Overview 3 C. Analysis of Senior Secondary Sub-Sector 5 D. Policy Directions for Senior Secondary Education 7 E. Lessons Learned 8

III. THE PROJECT 8 A. Objectives 8 B. Outputs 10

1. Output 1: Improved Student Learning Outcomes 10 2. Output 2: Improved School Management and Quality Assurance 15 3. Output 3: Increased Equity and Provision of Special Services 19 4. Output 4: Foundation for Enhanced Policy and Strategy Established 22

C. Special Features 22 D. Cost Estimates 23 E. Financing Plan 23 F. Program Coordination, Management and Implementation Arrangements 24

1. Project Coordination and Management 24 2. Implementation Procedures 24 3. Implementation Period 25 4. Procurement 25 5. Consulting Services 26 6. Advanced Action 26 7. Use of Counterpart Funds 26 8. Disbursements and Reporting 26 9. Accounting, Auditing and Reporting 27 10. Program Performance Management System 27 11. Project Review 27

IV. PROJECT BENEFITS, IMPACTS AND RISKS 28 A. Project Benefits 28 B. Impacts 29 C. Financial and Economic Impact 30 D. Institutional Impact 30 E. Environmental Aspects 30 F. Project Risks 31

V. ASSURANCES 32 A. Specific Assurances 32 B. Conditions for Loan Negotiations 34 C. Conditions for Loan Effectiveness 34

APPENDIXES 1. Project Design and Monitoring Framework ............................................................... 35 2. Problem Analysis ...................................................................................................... 43 3. Sub-sector Analysis .................................................................................................. 45 4. Indonesia Education Structure and System Overview .............................................. 51 5. Lessons Learned....................................................................................................... 55 6. External Assistance................................................................................................... 61 7. List of Candidate National Reference Schools.......................................................... 63 8. TA Grant – Project Evaluation and SSE Policy and Strategy Development ............. 73 9. Cost Estimates and Financing Plan .......................................................................... 94 10. Management Capability and Project Organization.................................................... 96 11. School State of Readiness and Characteristics of International Standards.............. 99 12. Project Implementation Schedule ........................................................................... 106 13. Terms of Reference for International Tendered Consulting Services ..................... 107 14. Compliance Monitoring Framework ........................................................................ 123 15. Beneficiaries of Staff Development Program and Overseas Fellowships ............... 133 16. Poverty Strategy and Social Analysis ..................................................................... 135 17. School Trust Account Management ........................................................................ 136 18. Environment and Resettlement Assessment (via Fact Finding Mission) ...................... 19. Sustainability Analysis............................................................................................. 140 20. Financial Analysis ................................................................................................... 147 21. Economic Analysis .................................................................................................. 149

LIST OF ANNEXES

(Published as Separate Report)

A. Senior Secondary Education Sub-Sector Review B. Teacher Resource Center Concept and Indicative Costing C. Digital Clearinghouse Concept and Indicative Costing D. Career Planning and Employability Skills Concept and Indicative Costing E. Student Resource Center Concept and Indicative Costing F. International Twinning Program for SMK G. National Service Providers and National Education Technical Advisors (NETA) H. National Reference Schools Admissions and Student Support Framework I. Detailed Economic Analysis

SUPPLEMENTARY TECHNICAL GUIDELINES AND SELECTED PROGRM TERMS OF REFERENCE (Available on Request)

Technical Guidelines for Loan Activities Development of SMK School Development Plan and Investment Proposal (Indonesian) Development of SMA School Development Plan and Investment Proposal (Indonesian) School Management Information and Reporting Installation/User Guide – MIRS (Indonesian) School Accounting and Finance Information Installation/User Guide - AFIS (Indonesian) School Finance and Project Finance System (Indonesian) Trust Account Management Guideline (Indonesian) Preventive Maintenance (Indonesian) Compliance Monitoring Evaluation and Research (some overlap with Appendix 8, ADB TA grant option) Complaint Resolution Mechanism Staff Professional Development Matrix Association of National Reference Schools Listing of Policy Directions for Core Goal Categories for SMKs Terms of Reference for Selected Programs School Continuous Quality Assurance Program School Project Management Training School Personnel Management System School Principal and Licensing Program Provincial Professional Development Team for Secondary School Improvement Networking and Dissemination Program Science Laboratory Technician Training ICT Laboratory Technician Training School Committee Capacity Development School Committee Training Modules (Indonesian) Librarian Training

SUPPLEMENTARY REPORTS (Available on Request)

ICT Strategy Report, May 2005 Integration of ICT into Senior Secondary Schools (Indonesian), May 2005 School Leadership and Management Program Outline and Course 1 Syllabus, May 2005 Fraud and Anti-Corruption Report, October 2004 Sub-Sector Overview, October 2004 Public Expenditure Review, October 2004 Gender Analysis, October 2004 Poverty and Social Analysis, October 2004 Education Planning and Management, October 2004 School-based Management Information System: Issues and Strategies, October 2004

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1

I. THE PROPOSAL

1. I submit for your approval the following report and recommendations on the proposed loan to the Republic of Indonesia for the Second Senior Secondary Education Project and for a grant to conduct project evaluation and research and to prepare a comprehensive sub-sector analysis.

II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS AND OPPORTUNITIES 2. In February 2004, the Asian Development Bank (ADB) approved a project preparatory technical assistance (PPTA) to support the senior secondary education system.1 The TA commenced in May 2004 and completed in December 2005. The Government, represented by the Directorate General for the Management of Primary and Secondary Education (DGMPSE) in the Ministry of National Education (MONE), agreed to an investment project consistent with Indonesia’s Education Law 20/2003 to improve the quality of senior secondary education (SSE). The Ministry of National Education Strategic Plan2 (2004 – 2009) identifies international standard human resources as the key to the national mission of achieving global competitiveness.

3. This project is designed to assist the Government create and sustain international standard education at the SSE level within the national education system. The project will implement and evaluate policy, system mechanisms and school improvement practices to raise quality standards. Through this experience, MONE will establish more precise definitions of quality standards, a proven domestic support network plus the capacity to disseminate improvement approaches for the broader development of the sub-sector. The project will achieve this through concentrated assistance to a limited number of schools that are already recognized for relatively higher levels of performance and also demonstrate capacity to increase effectiveness.3

A. Performance Indicators 4. Development problem: Indonesia requires accessible international standard SSE. The key to making high quality SSE available is the existence of policies, institutions, support networks and resources which allow existing schools to improve and sustain improvements. The existing private sector SSE schools that do provide international standards are: (i) very expensive and, therefore, cater only to an elite segment of the population; (ii) do not provide significant backward, forward and horizontal linkages4 into other parts of the national education system; (iii) profitable for graduates but the limited number of graduates do not create the critical mass of qualified labour required for improving national productivity levels (see para 9); (iv) geographically limited due to the lack of qualified teachers and managers (principals); and (v) connected to international support networks, bypassing the domestic national education system.

5. Indonesia has now reached the point where basic and tertiary education has a substantive momentum underway. Government support to establish standards, create opportunity, and institute support networks is enabling positive changes. On the other hand, the same support has not been directed to SSE. This sub-sector needs to be more responsive to 1 ADB 2004. Technical Assistance to the Government of Indonesia for the Decentralized Senior Secondary

Education Project (TA 4239-INO, for $1,000,000 extended in December 2004 to $1,400,000). 2 Officially titled “Strategic Plan for National Education”, November 2005. Also referred to as Renstra Depdiknas. 3 The Project design framework is in Appendix 1 and Problem Analysis in Appendix 2. 4 Backward linkages are linkages to the JSE level; forward linkages are linkages to the tertiary level; horizontal

linkages are linkages to other SSE level schools.

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the emerging demand and the standard of education provided needs to be raised so that it is comparable with the top schools within the country and internationally. Priority must be directed to improved quality along with the parallel policy, mechanisms, and supporting systems so the national system can provide equal opportunity for the majority rather than being dependent on private sector enterprises that cater to the few.

6. Education Law 20/2003 requires that the central and/or regional governments provide at least one educational institution “at an international standard”.(para 50). The Education Law recognizes that international standards are an issue of education management5 rather than narrow questions of curriculum, teaching methods, etc. The GOI long-term (25 year) development plan stresses the need to address globalization and international competitive pressures in all sectors, including education. The current Government’s Five-Year Plan emphasizes security and democracy, with education treated as a key mechanism to upgrade human resources for improved social welfare. The basic goal stated for education is to improve access to better quality education. The Plan’s program for SSE commits the Government to consider international standards in the development of curriculum, materials and teaching-learning methods with specific reference to international competency standards. The Plan requires the establishment of international standard schools “in phases”. The actual policy, systems and procedures, institutions and activities necessary to achieve these goals are not stated explicitly.

7. The MONE Strategic Plan assigns distinct tasks to the different levels of education. Improving access and equity in access is the major task of the basic education sector, composed of primary and JSE, assisted by early childhood education. In 2005, these activities receive 45.29% of the total central government education budget.6 The main policy for achieving improved and more equitable access is compulsory universal 9-year basic education, which receives 43.08% of the total central education budget.

8. The various plans implicitly recognize that education at the SSE level is qualitatively different from basic education, in terms of its developmental impact and implications. It is widely recognized that basic education is a key to successful long term development and has direct poverty reduction impact. GOI has accepted both the Millennium Development Goals (MDGs) and Education For All (EFA) programs for universal basic education as part of the national development policy. SSE enrolment is much lower among the poorest households (18%) than among the most affluent households (62%).7 Therefore, increasing the supply of SSE places will have limited impact on poor children many of whom have not been able to graduate from the JSE level. Education for poverty alleviation among these children must be focused on a package of interventions which will ensure the achievement of GOI’s goal of universal 9-year basic education. Such programming is well established within existing Government budget commitments.

9. Impacts of the problem. The Indonesian labor force is not internationally competitive. The average educational level is only 6.21 years. Twenty-six percent (26%) of large Indonesian firms report that worker education and skill levels present severe obstacles to their enterprises compared to 18% of firms in the Philippines and 13% in India.8 Indonesia also ranks in the lowest one-third (66 percentile) on the World Economic Forum 2003 Growth Competitiveness

5 Para 50 is the first paragraph in Chapter XIV Education Management in Education Law 20/2003. 6 This percentage is calculated on the “education function” budget, see para 13 below. Data from 2005 budget (2nd

revision). It includes 3 programs: early childhood education, basic education and non-formal education. 7 “Poorest” and “most affluent” refer to income quintiles Q1 and Q5. Re-calculated from the World Bank Education

Sector Review 2004, using data from 2002. 8 Statistics and factual labor force and SSE data are summarized in Sub-Sector Analysis, Appendix 3.

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Index, compared to Thailand and Malaysia which ranked in the top one-third. Foreign domestic investment has not moved Indonesia to higher technology production. The industrial structure is concentrated in low technology and assembly-type industries. Unemployment rates in Indonesia are high (9.5% in 2003) compared with regional neighbors and competitors such as Korea (3.7%), Thailand (1.5%) and Malaysia (3.4%). In addition, it is estimated that 30 million people, mainly in rural areas, are underemployed.

10. Uneducated and under-educated workers generally do less complex jobs. Productivity is higher in complex jobs therefore the return to education is higher. The basis of the demand for SSE-level education is that it serves as preparation for tertiary-level education and employment. As preparation for direct entry into the labor force, SSE allows workers to capture substantial wage premiums given broader knowledge and skills, particularly those relative to technology applications. It also enables future workers to reap the greater benefits from a tertiary-level education. The existence of a large cadre of SSE-level labor allows firms to invest in the higher-productivity technology, pay higher wages and still make profits. The lack of a competitive labor force also affects the capability to build international quality services. The maintenance and expansion of this overall dynamic needs a continuous improvement in the quality of SSE graduates who can keep up with the technology available to producers on the globalized open market. High quality, market-relevant SSE can make an important contribution.

11. Indonesia’s economy is growing at 4% - 5% annually, primarily due to domestic consumption. The economy has to undergo dramatic change if it is to keep pace with other regional economies. Current growth is not creating new jobs. In 2003 Indonesia lost almost 900,000 jobs, with more than half of those in the industrial sector. The only sector creating significant numbers of new jobs is unpaid agricultural labor. This pattern of “low quality” growth has many disadvantages. It is not sustainable—political and social stability require that the economy produce enough new jobs to absorb the growth in the labor force. Furthermore, poverty alleviation requires that the new jobs provide sufficient income to raise the workers out of poverty. The economy needs modern sector jobs with wages and salaries that reflect the workers’ improved productivity. Low quality growth does not produce the domestic savings needed to accelerate domestic capital formation, which is the only sustainable engine for long run development.

12. Root cause of the problem. The quality of a labor force is a complex combination of formal education and skills-based training, and informal characteristics such as motivation, discipline, problem and decision making skills, inter-personal relations, English capability, willingness to learn and “teachability” (learning skills). Not all of these are taught in school, but the institutional culture of the school helps to engender these attitudes and values. Creating the culture and values of international standard schools in Indonesian SSE will contribute to these intangible qualities of an internationally competitive labor force. Higher levels of education and overall competence are already critical in a globalized world and Indonesia will have to compete increasingly on the basis of its skilled workforce (see Appendix 2, Problem Analysis).

B. Sector Overview 13. The Indonesian educational system is a complex network of sub-systems. Law 20/2003 concerning the National Education System mandates a unified system but historical development and current politics make this difficult.9 The system consists of programs offered by both government and private schools under both MONE and the Ministry of Religious Affairs

9 Indonesia Education Structure and System Overview, Appendix 4.

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(MORA).10 The government issues graduation certificates to students from all types of formal schools based on passing a national exit examination.

14. Under the Law, the only difference between government and private schools is ownership and financing: private schools are required to fulfill all the same rules, regulations and quality requirements as government schools. Government schools are owned by the Government and financed through government (central and regional) budget allocations. Private schools are owned by private-sector legal entities and are responsible for covering their own capital and operating costs. The central government provides a significant amount of assistance to private schools in the form of civil service teachers11 and various other interventions (construction, books and equipment, etc.) funded through various channels. District and Provincial Legislatures may also provide funding to private schools through their own budgets but this is limited.

15. The Law requires the Government (central and/or regional) to provide free basic education to all students. GOI has responded to this mandate through the School Operation Funds Program (BOS) that ensures funding by the central government to all primary and JSE schools – both government12 and private. The allocations are calculated on a per capita formula which is intended to provide sufficient funding for provision of minimum required educational services. Parents and schools who desire higher quality educational services have the option of “topping up” the BOS with fees and contributions directly to the school.

16. During the period of high foreign investment in Indonesia, international schools were created to provide internationally certified educational programs for their children of expatriate families. Many of these offer the International Baccalaureate Program (IB) in addition to the core curriculum in their country of origin. Most of these schools are located in affluent urban areas. Recent changes in government regulations now allow these schools to accept non-expatriate Indonesian students. More recently, the private sector has expanded by introducing schools with linkages forged with international institutions aimed at higher output standards.13 An increasing number of students are enrolling in these high cost private schools that are linked with international certification and accrediting agencies.14 Typically, these focus on bilingual or English-only instruction. Such schools are primarily non-vocational, expensive, and also located in large urban centers. School fees are considerably higher than those for regular private SSE schools and in some cases similar to those at the “international schools”. They are, however, producing graduates who have education qualifications that are more comparable with schools outside of Indonesia and also better suited to labor force demands. Current government policy intends to enable higher quality SSE throughout the country that is accessible to the general public.

17. The gross enrolment ratio for primary school is 114%, with about half of the 14% surplus coming from under-aged children who are already enrolled in primary school and the remainder from over-aged children who have not yet graduated. The net enrolment ratio (NER) for primary is 99% and for junior secondary education (JSE) is 78%. The really crucial issue in enrolment is the low rate of primary-JSE transition: only about 70% of primary graduates transition to JSE. Transition from JSE-SSE is higher (83%), which means that students who survive to JSE level

10 Another type of school is a pesantren - a Muslim boarding school offering only religious studies. 68% of registered

pesantrens offer a type of formal education. Many have MONE or MORA schools on campus. 11 GOI pays teacher’s civil service salary to the school but teacher salaries are determined by the school. 12 For government schools, BOS is additional to their annual budgets which are funded by the District. 13 In a few cases government has formed linkages with international organizations to improve the quality of

vocational/technical secondary education. Some general secondary schools also have international links. 14 These schools have formed an association under the rubric of “National Plus” schools.

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tend to continue through SSE for an NER of 51%. The Government’s highest priority for education is now the 9-Year Compulsory Basic Education campaign (Wajar), which is intended to raise NER for JSE to 100%. More recently, they have recognized the importance of SSE as the key gatekeeper to increasing overall human resource capacity (MONE Strategic Plan 2005-2009).

18. Poverty is a predictor of enrolment and the effect is more pronounced at higher levels of education. But, research shows that income, not poverty per se, is the force driving enrolment. Using District-level data, a 10% increase in average per capita income is associated with a 23% increase in primary enrolment, a 119% increase in JSE enrolment and a 210% increase in SSE enrolment. Gender discrepancies are not a major problem in Indonesia given that females account for 49% of primary school, 49% of JSE, 47% of SSE and 50% of tertiary enrolments. The only concerns are in SMK schools, where females are 42% of total enrolment.

C. Analysis of Senior Secondary Sub-Sector 19. The SSE sub-sector itself is also divided into two streams: general SSE (SMA) and vocational SSE (SMK). SMA students account for 60% of total SSE enrolment. The SMA curriculum is divided into 3 programs: natural science, social science and languages. Natural science accounts for 37% of total enrolment; social science for 59%; and languages for the remaining 4%. Private SSE schools tend to have somewhat higher enrolments in social science programs and substantially lower enrolments in language programs than government schools. A single SSE school may offer all three programs, charging the same tuition and fees for all students.

20. SMK curriculum is divided into 6 programs: agriculture and forestry, technology and industry, business and management, community welfare (previously household skills), tourism and art and handicraft. Technology and industry together with business and management account for 89% of total enrolment, with tourism at 5%, agriculture and forestry 3%, community welfare and art and handicraft at 1.5% each. Private SMKs have substantially higher enrolments in technology and industry programs than government SMK and marginally higher enrolments in business and management programs. SMK graduates enjoy a 3% wage premium over SMA graduates who also directly enter the labor force. There are approximately 179,000 graduates annually from government SMK and 415,300 graduates from private SMK. In SMA, there are approximately 551,650 graduates annually from public SMA and 383,485 graduates from private SMA.

21. Basic education creates the educated citizenry necessary for democracy, but cannot create an internationally competitive labor force. Furthermore children who leave school at the age of 12 (primary) or 15 (JSE) do not usually proceed directly into the paid labour force. Instead they help at home or as unpaid labor in family enterprises, moving into the paid labor force later as jobs open up and they become older.

22. Senior secondary education graduates, on the other hand, are old enough to move directly into the labor force and approximately one third do so. The remaining 66% make the transition to tertiary education, with 17% going into “diploma” programs and 49% going into full university undergraduate programs. These people become the professionals and top managers in the labor force where currently many positions are held by foreign workers. Improved quality of SSE graduates will impact this scenario and, correspondingly, those who make the transition to tertiary education in local institutions or to technology oriented employment will push for higher quality standards.

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23. An indicator of the quality of SSE is final national examination scores. In the 2003-2004 school year, on a 10 point scale, the national average was only 4.62 for JSE and 4.48 for SSE.15 There are a number of factors contributing to poor quality in Indonesian education, which relate directly to insufficient funds allocated to the sector and the consequent impact on recruiting and retaining high quality teachers; the provision of good facilities, teaching aids, textbooks and technology access, and a student-focused teaching-learning process. This situation, when combined with the need for improved management, compounds the problem to be addressed.

24. Although Indonesia has been successful in providing access to education, research indicates that much remains to be accomplished in achieving high quality education in SSE and in the feeder JSE schools. In the latest study by the International Association for the Evaluation of Educational Achievement (IEA) of mathematics and science using internationally standardized tests for 14-year-old students (Class 2 of JSE), Indonesian students ranked 35th out of 39 countries in mathematics. This represents an average score equal to 83% of the average for all countries but only 66% of the highest-scoring country, Singapore. In science, Indonesian students ranked 33rd out of 39 countries participating in the examination, with an average score equal to 90% of the average for all countries and 75% of the highest-scoring country, Taiwan.

25. The 2003 Organization for Economic Cooperation and Development (OECD) study surveyed reading, mathematics and science of 15-year-olds (SSE Class 1). Indonesian students ranked 39th out of 41 countries in reading, with an average score equal to 74% of the OECD average but only 66% of the highest-scoring country, Finland. In mathematics, Indonesian students ranked 39th out of 41 countries participating in the examination, with an average score equal to 73% of the OECD average and 66% of the highest-scoring country, Hong Kong. In science, Indonesian students ranked 38th out of 41 countries participating in the examination, with an average score equal to 79% of the OECD average and 71% of the highest-scoring country, Korea.

26. The pattern of distribution for the surveys indicates that Indonesia is caught at the lower end of a group of countries with roughly similar quality of education. Marginal improvements in Indonesian education will only push Indonesia up from the lower end into the middle of this group. It will not provide a competitive edge. Creating a globally competitive labor force will require that Indonesia “leapfrog” others by providing SSE graduates with a standard of education comparable with more developed countries.

27. The OECD study provides detailed information about the quality of Indonesian SSE. Although the average score on reading is close to 75% of the OECD average, almost one-third of Indonesian students (31%) score below level 1 on the reading scale. This indicates serious deficiencies in their ability to use reading literacy as a tool for the acquisition of knowledge and skills in other areas. This lack of reading ability seems to be linked to particularly poor performance on the specific skills of retrieving information from written texts and interpreting texts, where Indonesian students ranked 40th out of 42 countries, with mean scores at 70% of the OECD average and 62% of the highest-scoring country, Finland. Indonesian students did only slightly better on the evaluation of texts, ranking 39th out of 42 countries, with a mean at 75% of the OECD average.

28. Although there is improved access to SSE, the success of the international and National Plus schools suggests that there is further demand and willingness to pay for international standard quality SSE. The constraints appear to be on the supply side: teachers who can teach 15 Starting in 2003-04, national end-of-cycle exams were modified. National exams are only administered for Bahasa

Indonesia, English and Math, while exams for other courses are school exams with national standards. The passing grade has been raised to 4 from 3 as a step to improve quality.

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at international standards and principals who can manage international standard schools. The existing National Plus schools have indicated a desire to expand, particularly to affluent urban areas outside Jakarta, however they are unable to find the supporting resources they require, at any price.

D. Policy Directions for Senior Secondary Education 29. The regional autonomy laws implemented in 2001 gave the responsibility for education to District Governments. Subsequent laws have given Provincial Governments responsibility for coordination and supervision. Districts and Provinces have their own autonomous budgets passed by their respective Legislative Assemblies. Budget revenues come from central transfers as well as the District or Province’s own tax base. The regional Legislatures (DPRD) have full authority for regional budgets but are required to pay the salaries of district civil servants, including teachers.

30. The GOI 2005 budget has three key strategies: pro-growth, pro-employment and pro-poor including support for areas affected by natural disasters. The 2005 central government budget allocates 8.1% of total spending on central government agencies to MONE and 9.7% of the central budget is allocated to the education “function”.16 Of this funding, 33% is for basic education and an additional 30% for tertiary education. SSE receives 13%, as does the program for improving quality of educational personnel.

31. The 2005 Government’s Annual Work Plan17 emphasizes the need for greater investment, financial restructuring, reduced interest and inflation rates and improved export trends. It also focuses on the fact that the globalization of world trade reconfirms the requirement for a deeper understanding of science and technology in production and also the need to implement international standards in production and trade. It stresses the need for: (i) a climate conducive to improved business-labor management, (ii) citizens with greater sense and commitment to good governance, and (iii) the need to develop an internationally competitive human resource base (labor force).

32. The Plan’s solution strategies emphasize the need to increase SSE standards relative to improved quality of graduates, the system, and school management. “Management of the education system….is not yet completely effective and efficient which is shown by, among others,…..[that] Indonesia is not yet capable of raising the competitiveness of educational institutions to face the era of global education”.18

33. Government policy has stressed universal basic education. Although transition rates from JSE to SSE remain relatively poor in some areas, there is an increase in demand in all areas. Demographics indicate a degree of urgency in the need to attend to SSE. In the next 15 years there will be more graduates who continue on from JSE to SSE given improvements in basic education. However, this is not matched by increases in basic education enrolments. Therefore, the actual number of SSE candidates will start to decline dramatically before 2020. This suggests that by investing now, the cost benefit ratio will be greater. Such a strategy will provide for a better system for the future and also the potential investment returns based on forecasted graduations will be greater.

16 Beginning in 2005, GOI changed its budget format. Previous budgets had been organized into “routine” and

“development” spending categories. The new format follows international (UNDP) best practice. The budget is now presented in 3 formats: organized by type of expenditure item (personnel, goods and services, capital goods, interest and debt repayment, subsidies); by Ministry/Department; and by function. Education is one of 11 functions.

17 The Work Plan is the legal basis for the budget request to Parliament. 18 See 2005 Annual Work Plan, Volume 8, page 3 and also page 8.

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34. MONE’s vision statement stresses that education is to produce a society which is peaceful, democratic, of good character, expert (knowledge), competitive, progressive and prosperous.19 The MONE Strategic Plan provides a foundation for improved quality and higher performance SSE schools. It includes the number of schools at international standards as an indicator of quality, relevance and competitiveness.20 Current MONE initiatives are funding an increased number of SSE SMA and SMK schools, either through direct government school construction or via support for private sector initiatives. Much of this investment is directed to rural areas. Included is the introduction of 100 integrated SSE schools (2004-2005 achievement), particularly in rural communities, whereby students can benefit from both academic and vocational curriculum in the same school. In addition, SSE is being provided through classrooms built as attachments to junior secondary schools. Each of these options focus on the Government’s commitment to accessibility. Extensive scholarship funds are also available for poor students. At the same time, MONE recognizes the need to improve the quality SSE opportunities.

E. Lessons Learned 35. Appendix 5 provides a list of lessons learned and how they have been incorporated into the project design. Experience from a range of projects,21 plus feedback from MONE officials, indicates the need to address lessons in several key areas: issues on program content and substance; numbers of schools and interventions and the extent of school self-determination for priority inputs; and, project management.

36. Program content concerns deal with the need to ensure the new Curriculum 2004 is supported while at the same time capitalizing on existing materials and syllabus from Indonesia based international and National Plus schools, as well as from domestic and overseas twinning arrangements. MONE does not want to involve too many schools as this could dilute the potential project contribution due to insufficient funds. Therefore, attention must be directed to creating sufficient momentum within each target school to ensure substantive and long lasting change occurs. Investments must be staged and based on school priorities that have been formulated via a participative local planning process. Project management has to be streamlined to reduce centrally managed interventions and increase school determined and managed change initiatives. All fiscal management is to occur within the context of strict public disclosure and good governance practices.

III. THE PROJECT A. Objectives 37. The intended project impact is a globally competitive labor force. Indonesia’s workforce has relatively lower ratios of educated employees and lower labor productivity rates than other countries. One reason is the lack of high quality education. Recent Government policy and strategic plans emphasizes SSE system improvements to produce higher quality graduates from both general secondary (SMA) and vocational secondary (SMK). The requirement that each district22 is to have schools performing to international standards23 is integral to this process. The private sector has responded to public demand for better schooling by establishing 19 See Education Law 22/2003, Section 1. 20 See Table 6.1, Indicators of Monitoring and Evaluation of National Education, MONE Strategic Plan, October

2005. 21 See Appendix 6, External Assistance 22 There are 33 provinces and 443 districts in Indonesia, November 2005 23 Education Law 20/2003

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the National Plus Schools; however, the overall public system which caters to those who can better afford an education has not made the same progress in achieving more internationally comparable graduate standards.

38. The outcome of the project is to increase the number of SSE students graduating with improved qualifications, skills and attributes of greater relevance to the global market place and as more educated citizens. The most cost effective and efficient strategy to achieve this is to concentrate on developing the policy infrastructure, implementation mechanisms, school improvement practices, and system support structures that will assist the Government and districts to comply with the Law. The project will focus on relatively few already recognized schools that demonstrate the greatest potential to improve and also the greater opportunity to help trigger parallel improvements in the junior secondary feeder system, other senior secondary schools, and in the overall system. These schools will help to establish standards that are appropriate for Indonesia as well as to assist in creating the domestic support systems required to sustain a secondary education development program. Also, given that these schools represent different stages of development, the project will help identify effective school improvement approaches that can be replicated.

39. There will be three streams of project schools, each with different input intensity levels and each commencing at different times in the project. Commencing in the first year, 160 out of an eventual target of 500 project schools will comprise the first stream. These are in 21 out of the 33 Indonesian provinces and involve 85 districts (Appendix 7). Inputs will be based on the school’s bid for project investment submitted as part of project preparation. This requires a participative school-based planning process and, given differential awards, provides a foundation for competition that rewards sound planning and good performance. These schools are referred to as candidate national reference schools.

40. A second stream of 160 candidate national reference schools (100 SMA and 60 SMK) will prepare school plans in the first year of the project while at the same time being supported by some inputs to enable them to achieve a greater state of readiness for project involvement. Longer-term inputs in these schools will be more limited and with lower investment than the first stream. This strategy will provide the opportunity to stage, control and evaluate the inputs, and the required implementation conditions, in order to identify high cost-benefit systems and procedures that enable quality improvement. Both streams will have to demonstrate progress as a stepping stone to further annual investments. The third stream is for 100 SMA and 80 SMK schools, some of which will be in the same provinces as earlier streams, but at least two schools will be in each of the remaining provinces. These schools will prepare school development plans in the second year; therefore, will be involved in the project for fewer years and benefit from much lower investment. The inclusion of Streams 2 and 3 schools will result in every province having at least one SMA and one SMK candidate national reference school, consistent with the MONE concept of this project being a key national initiative in support of application of Education Law 20/2003.

41. The first 160 schools have been selected based on their high national achievement standings, known teaching and leadership capacity, comprehensive plans, and projected community and local government commitment to sustainability.24 As potential “National Reference Schools” (NRS), these schools will provide models and services for other schools. Although the project will affect only about 5% of the total number of SSE schools, the dissemination of project interventions from the first stream 160 to the additional 340 candidate NRS will provide a blueprint for MONE’s commitment to a broader national school improvement program. All 500 schools (300 SMA and 200 SMK) will progress to higher standards. Those 24 See Appendix 7 for list of schools by province and district (Candidate National Reference Schools).

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demonstrating greater commitment and success will be the beneficiaries of greater investment support.

42. The project will focus primarily on instituting quality improvements in the teaching-learning process and on school management consistent with MONE’s mandate to establish international standard schools. Although SMA and SMK school needs and objectives vary, a single project is warranted because there are sufficient common areas of required improvement. These include access to generic staff development courses, common school improvement programs, and parallel policy initiatives and implementation mechanisms. to develop international standard quality control and possible certification. Both SSE school types cater to broad social sectors, but SMK’s greater responsiveness to lower income groups ensures issues of increased equity will be addressed as part of the project design. Project schools will be required to admit students on the basis of merit; therefore, issues of equity will be stressed.

43. The project seeks to achieve four results (outputs): (i) improved learning outcomes of senior secondary graduates; (ii) improved senior secondary management and continuous quality assurance; (iii) increased equity for qualified students; and (iv) established foundation for enhanced policy and planning and independent project evaluation. The latter output is to be accomplished through a parallel ADB funded technical assistance grant. The project design and monitoring framework is in Appendix 1 and problem analysis in Appendix 2.

B. Outputs 44. The project features interventions that will establish and help to institutionalize high performance educational standards designed to improve the quality of senior secondary education. Interventions are targeted primarily at schools although some aspects of district, provincial and national government operations will also benefit from project involvement.

1. Output 1: Improved Student Learning Outcomes 45. Four interventions aim to improve student outcomes: (a) strengthen standards for learning environment, curriculum and student assessment; (b) improve performance of teachers and instructional support personnel; (c) provide and upgrade teaching materials, equipment and facilities; (d) improve career planning, job readiness and placement services.

a. Strengthen Standards, Curriculum and Student Assessment 46. In order to raise the global competitiveness of graduates entering the workplace Indonesian students must be furnished with new skills, attributes and knowledge. A key measure of project success will be the performance of graduates from project schools in tests sponsored by internationally recognized education institutions and education research organizations. For this intervention, the project will: (i) strengthen educational standards; (ii) upgrade and enrich the current curriculum; and (iii) introduce an international examination and certification option for some SSE graduates.

47. Educational standards. The project will assist GOI to identify and establish internationally recognized standards for senior secondary schools by supporting linkages between Indonesian organizations (private or public) and international organizations or individual experts. These linkages will provide indicative international standards for: current teaching methodologies; graduate outputs; facilities, equipment, teaching materials; student, faculty and staff competencies; and classroom management procedures. In addition, they will provide expertise and potential student education or job placements. International and national education advisors will define quality standards (as part of their input in other areas) that can serve as input to project schools and potentially to employers, professional organizations, higher education

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institutes, the National Standardization Board and the School Accreditation Boards. The project will finance technical assistance (24 months of national consultant) workshops, training and block grants to education service providers to establish twinning arrangements or support existing linkages.

48. The extent to which schools adopt the standards identified, nurture existing or pursue new twinning arrangements will vary. Some schools will opt to achieve a full range of services and courses including certification and perhaps accreditation. Others will use the experience to improve the process of achieving national graduate output standards without necessarily pursuing international certification. Most will explore one or more mutually beneficial links with other education organizations.

49. Current curriculum improvement. The project will enable schools to enrich the current national curriculum with improved instructional support materials and expanded curriculum topics. Teams comprised of NRS teachers supported by international and national education advisors will review all curriculum in all SSE grade levels and provide teaching-learning support materials. Differences between national and international curriculum topics will be highlighted and lesson plans and materials developed by these teams.

50. The project will provide a foundation for curriculum content and delivery that is comparable with international standards. Each school will choose the extent to which they decide to use such curriculum. For some schools, the ultimate aim would be the provision of international standard curriculum in all regular programs. SMA schools will give priority to enriching existing national curriculum through improved lesson planning, improved availability of teaching resources, and greater student-centered learning. But this does not necessarily mean integrating overseas courseware in order to secure international certification. SMK schools intend to pursue curriculum enrichment options but with the firm objective of offering certified international curriculum. Both SMAs and SMKs will maintain national priorities for the teaching of religion, Indonesian civics and also English, science, mathematics and ICT. A parallel aim is to provide MONE with experience to enable them to establish policies on international standard curriculum. The project will finance international travel, fellowships, technical assistance (36 international and 80 national advisors (teacher) person months for both SMA and SMK, campus-based training (in-service training), school-based advice and guidance (on-service training); pilot studies, workshops, and annual regional forums for three subject specialties to review and share enrichment initiatives (e.g. embryo for three National Reference School Professional Forums for Mathematics Teachers; for English Teachers; and for Physics Teachers).

51. International student certification. Achieving individual student international certification for selected courses, or an entire program, is a recognized target for all SMK and some SMA schools. Schools may fund their students to take these exams pending approval of the school’s project investment proposal. SMKs will rely on twinning arrangements as the means to provide certification. Some SMAs may pursue twinning as a link with an overseas organization. However, the majority of schools presently intend to arrange for student access to overseas exams (rather than formal twinning). The project will finance the cost of test invigilation and exam scoring and special student services to prepare students (as individuals or as classes of students).

b. Improve Performance of Teachers and Instructional Support Staff 52. Many teachers have little knowledge of interactive and student-focused learning and use teaching and assessment methods geared to rote memorization rather than to creative thinking. In part, this is a response to examination assessments which emphasize factual recall over

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problem solving. Many suffer low motivation and limited creativity because of the lack of experience, incentives, poor facilities and teaching, and the lack access to a comprehensive and easily accessible professional development program. Project contributions include: (i) provide intensive training for teachers and vocational-technical assessors (certificate program); (ii) provide short-term training for instructional support staff through a series of individual courses (not certificate); (iii) increase teacher and staff access to international standard resources; and (iv) substitute teacher replacement personnel. MONE will formally recognize these and other project ‘certificate’ programs as part of its overall articulation with the National Standards Bureau (Badan Standard Nasional Pendidikan).

53. Teacher professional development certification program. The project will aim to design and provide a recognized program of studies that is available for all teachers in project schools.25 Course content will be focused on enabling instructional performance at high standards (International Standards Teaching Certificate). Teachers from either SMA or SMK will be able to take a 250-day certificate program which will require over a year to complete given the need for formal instruction, in-school application and, for SMK, industry placements. The project-based certificate will consist of three streams – teaching methodologies in content-specific subject matter areas (100 days); contextualized English and ICT (115 days); and specialized short skills-based courses (35 days). All streams will be offered using interactive, creative thinking and problem solving techniques. There are 25 subject areas (10 in SMA and 15 in SMK). Each will have certificate content developed through coordination by a MONE unit responsible for in-service training. The education service providers for SMK will include the Vocational Training Centers (Vocational P3G) and for SMA, the Academic Training Centers (Academic P3G). In addition, both directorates will use other education service providers (ESP) such as universities, NGOs, etc. depending on the area of study. Each designated education service provider will rely on existing or expanded formal twinning arrangements and independently hired national and international advisors. SMA teacher development teams will be supported by 36 person months of international experts (teachers) and 80 person months of national advisor inputs. SMK inputs will vary between the 6 clusters but there will be a total of 36 international and 80 person months of National expert (teacher) input. The project will also fund teachers to gain experience by participating in international fellowship placements.

54. The first teacher certificate stream is based on the teacher’s field of study with an emphasis on student-focused learning, greater use of science and technology and industry applications (for SMK) in teaching. Courses will combine content upgrading with teaching-learning and student assessment methodology. New syllabi, lesson plans and instructional guides developed through the training will be integrated with the curriculum enrichment program (para 50) and selected materials will be posted via project supported networking and dissemination initiatives (see para 58). Internships in industry will be included for SMKs. Some teachers will also benefit from invitations to shadow teachers in Indonesian international standard schools.26 Some will have the benefit of overseas placements. The second stream (parallel) consists of courses in ICT and English to enable school personnel to make the best use of new international class materials and resources developed or made accessible through the project. These second stream courses will be offered and certified by project authorized existing Indonesian organizations, ideally located close to the project schools (e.g. recognized computer schools, English instruction centers, etc.). The project will determine the competency

25 MONE commits to give formal recognition to this Certificate Program (and also the School Leadership Program)

through DG Mutendik. MONE also commits to explore the link between this project certificated and other MONE initiatives to articulate in-service achievements with higher education (see Assurances).

26 Discussions with International and National Plus school representatives indicated support for the opportunity for a few NRS teachers to complete internships as part of their program.

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levels for these courses in conjunction with the international and national advisors. The third stream is comprised of a range of 5-day courses, e.g. leadership, entrepreneurship, speed reading/comprehension, research methods, scientific writing, etc. which will be designed by national advisors (12 person months). Teachers will be required to complete 5 of these courses as part of the certificate program (delivered via authorized education service providers chosen for either the SMA or the SMK programs).

55. The education service providers will assist MONE to coordinate the in-country placement of international teachers (advisors) and to assist with the design and delivery of the certificate program, the in-school teacher guidance, and also the curriculum enrichment program. Individual schools may choose to hire additional locally-based part-time international teachers through their block grant allocations (e.g. local native speaker of English). Substitute teachers will be contracted through the project to allow school personnel to engage in the program. Funds will be provided for international advisors, education service provider coordination and delivery of courses, equipment deemed essential for the training but not presently available, overseas fellowships for teacher certificate designers, and internships in industry and international standard schools. School personnel will register for courses using their school’s project funds with payment made to authorized education service providers (e.g. to P3Gs, or English or ICT Training Centers).

56. Instructional support staff in-service courses. The project aims to improve staff support to the teaching-learning and testing processes. Four categories of personnel have been identified: (i) SMK vocational workstation technicians (6 program areas); (ii) vocational specialization assessors in 6 program areas (offered as a certificate program), (ii) SMA/SMK science technicians (3 subject areas) and (iii) SMA/SMK librarians, (iv) SMA/SMK ICT technician. For these 17 different positions a series of 3 campus-based 10-day modules will be designed. Similar to the teacher certificate program these shorter courses include applied in-school assignments which will require more than 6 months for program completion. The project will provide funds to hire national consultants (total 42 person months) who will form 5-member course resource teams (17 teams) to design, pilot test and conduct train-the-trainer activities. Each team will be assisted by 5 practicing teachers, seconded by the project for 1 month. Funds will be allocated in school block grants to enable schools to register staff for these courses. Indonesian-based education service providers will be given block grants to offer the courses designed by the course resource teams.

57. Teacher access to reference materials and peer sharing opportunities. Teachers and instructional support staff lack access to up-to-date instructional materials and have limited opportunities to share experiences through subject matter teacher discussion groups (MGMP). The project aims to provide the option for securing the means to gain increased access to international standard resources and materials by establishing and equipping a 30-40 square meter dedicated teacher resource center (TRC) in NRS. This will provide a local access point for both in the NRS and local colleagues. The center will enable teachers to obtain information through the internet and school intranet (6 desktop computer stations connected to internet/intranet, laptops, printer, LCD, and photocopying/scanning facilities) and also access materials (printed, CD Rom, Video, etc) supplied through partnerships and from fellow teachers. The project will finance technical assistance (36 months national consultant) to assist schools to design and build/rehabilitate, furnish and equip a TRC. It will finance the costs of internet access and Contract Education Staff to assist in each center’s operation. It will also fund the design and delivery of short courses to empower teachers with skills to benefit from this in-school resource.

58. Networks and dissemination mechanisms. The project aims to provide a foundation for NRS teachers to organize as professional colleagues, locally, regionally and nationally. The project will pilot test the development and maintenance of National Reference School

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Professionals Associations (NRSPA) for three subject areas (English, Mathematics and Physics for SMA and SMK). Commencing in the 3rd year, these NRSPA groups will hold local meetings to form professional learning communities to disseminate materials, project interventions and to provide direct liaison among NRS (and other) teachers. In readiness for this, the project will establish (before end of 2nd year) and maintain a centrally managed web portal as a Digital Clearinghouse through which educators can share experiences and resources. The project will finance international and national consultants (6 person months each) to design the Clearinghouse, to procure equipment, develop software, and to hire central web maintenance staff (Contract Education Staff equal to 180 person months). It will also train MONE staff to operate and maintain the web-based system which will be hyperlinked with existing MONE websites. In support of this pilot initiative, funds will be provided for the NRSPA national forums. Funds will be provided to pay for teacher preparation time for on-line modules (also reference books).

c. Upgrade Instructional Materials, Equipment and Facilities 59. Project schools lack the necessary materials, equipment and facilities to implement international standard curriculum and secure recognized certification. The project will assist schools to assess their needs and to procure as required in the following areas:

60. Instructional materials and textbooks. The project aims to assist schools to procure materials required by new or enhanced curriculum introduced by project schools - textbooks, student and teacher references, teaching aids and supplies. Project schools currently have limited or no quality instructional materials due to the lack of funds or unavailability. The project will enable assessments through comparisons with lists of standards and specifications provided by local and overseas international schools and twinning partners. The international linkages will also be a source to locate and to purchase the best materials. The project will help to coordinate such procurement and ensure consistency with both ADB and Government regulations.

61. Equipment and software. In accordance with approved development plans, schools will be provided with block grants to secure equipment to support an education that emphasizes applied skill experience (vocational workstations), student discovery (demonstration science labs), self-learning and research (libraries and ICT access). The project will finance 72 person months of national technical assistance to help schools to plan and arrange procurement of their equipment and software needs (and instructional materials) consistent with international standards. Procurement will include the installation, operations training and maintenance agreements.

62. Instructional facilities - rehabilitation or construction. Schools will be assisted to build or rehabilitate facilities suitable for new equipment and different teaching-learning methods, furniture, and materials. This includes installation/improvement of: air conditioning in ICT labs and libraries to protect against heat and humidity; plumbing and hazardous waste disposal in science labs and vocational workshops, SMK testing centers, SMK workstations; and toilets, electric and water services. The project will finance 72 person months of national consultant expertise to assist and verify school needs relative to international target standards. Schools will procure local supervision services as well as actual construction through block grants. Courses will include training on how to integrate the effective use of these facilities into the upgraded curriculum.

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d. Improve Student Readiness for Post-SSE Experiences 63. The global labor market demands adaptive work-based and life skills. Project schools have limited experience in these areas and lack the means to assist students to obtain national or international jobs or acceptance into internationally recognized tertiary education. The project will enable schools to improve these services by establishing career planning, job readiness and placement services dependent on NRS school development plan priorities.

64. Career planning and placement services. The aim is to build school capacity to provide students with guidance to plan their futures, generic skills required for job readiness, and placement services for employment or tertiary education. The project will finance a Career Planning Center as an option for NRS to provide for this need (higher priority given by SMK than SMA for this initiative). It will finance 6 person months of international, 16 person months of national consultant and 420 person months of national advisor input, Contract Education Staff, and also workshops and training to: (i) assist schools establish career planning programs including entrepreneurship training; (ii) establish placement service networks with national and international institutions and businesses; and (iii) international travel required to broaden networking. In addition, the project will finance fellowships for 60 career center coordinators (2-month program).

65. Counselling and guidance support program. The project will help to improve the capability of counselors in both job and career guidance and also in assisting students in both SMA and SMK to access higher education opportunity. The project will finance 32 person months of national consultant input and 300 person months of national advisor support to design and implement courses, assist in setting up career guidance and job placement services and in providing tutorial support to students who need assistance in maintaining the standards required.

2. Output 2: Improved School Management and Quality Assurance 66. Five interventions aim at improving school management and quality assurance: (a) upgrade selected management systems to internationally recognized standards; (b) upgrade management and administration personnel and assign formal MONE recognition for successful professional upgrading achievements; (c) increase the degree of participation of the wider community in school development; (d) establish sustainable funding initiatives; and (e) institute school-based quality assurance programs.

a. Upgrade School Management Systems and Procedures 67. Schools require efficient and effective management systems and procedures. The project will assist schools to achieve improved operating systems with required outputs in several areas, each within the context of an environment of trust, respect and good governance. The project will: (a) develop and implement MIS, accounting and finance systems, (b) develop and implement a personnel management system and (c) continue the work started in the PPTA on School Development and Investment Plans (SDIPs).

68. MIS, accounting and finance. The project aim is to develop NRS capability in information management and finance and accounting in order to achieve project objectives. The PPTA developed and tested a prototype Management Information and Reporting System (MIRS) and an Accounting and Finance Information System (AFIS). MIRS is a school based application to support administrative systems e.g. class scheduling, continuous student assessments, asset inventory, school profile data, and preparation of required government reports. The MIRS will be expanded through project input to include a logistics component. The finance system provides transparent tracking of all income and expenditure and is tied to a trust account mechanism for

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public disclosure procedures. The project will finance: (i) 12 person months of national consultant input to continue to enhance the MIRS, to conduct final pilot testing, train trainers and complete installation in 140 NRS prior to the end of the 1st project year; (ii) 12 person months of national consultant input to revise and implement the AFIS and complete installation in NRS, also prior to the end of project year 1; (iii) 120 person months of national advisor input to install both MIRS and AFIS in selected Stream 2 schools so they can comply with school state of readiness requirements prior to eligibility for increased block grant funding; (iv) software and operating manuals; and (v) staff training in how to install and operate the software/systems in NRS and Stream 2 schools.

69. Personnel management system. School personnel tend not to have a strategic career plan; nor do they have a school supported professional development support program. In addition, they are underpaid so tend to work in other jobs and they tend to lack sufficient respect from the wider community. This scenario contributes to a lack of motivation to perform at the high standards expected in the project. The aim is to establish a personnel management system to be more effective in staff reporting, to support career planning and to contribute to staff morale. The project will design and implement a Personnel Management Support System (PMSS). It will be linked to the MIRS though a common database of all school staff. The system will support staff planning (e.g. retirement schedule, recruitment), a career development strategy, performance appraisal, and the staff professional development program. The project will finance: (i) 6 person months of international and 12 person months of national consultant input to help schools and MONE establish performance-based assessment procedures that will assist schools determine individual staff contributions and entitlements; (ii) 18 person months of national advisor input to design, pilot and train trainers in the personnel management system, including provision of software and operating manuals; and (iii) funds to train school staff in how to install and operate the software and systems in NRS.

70. School Development Plan and Investment Proposal (SDIP). The SDIP aims to institutionalize a demand-driven planning and funding system for SSE. It is also a key aspect of MONE’s commitment to support the application of school-based management (SBM) practices. During the PPTA, each candidate NRS, assisted by facilitators, was required to develop an initial version of the SDIP. As a continuation of this work, the plans will be revised annually, based on awareness of more refined standards and also from greater experience in the process. Each plan includes an annual school accountability contract between the school, district and MONE. This contract is integral to compliance assessment and ongoing specification of block grant amounts. There is a need to develop the capacity of central, provincial and district government staff to evaluate and approve NRS SDIPs. The project will finance: (i) 72 person months of national advisor services to train and supervise 804 person months of facilitator input to assist 500 project schools to annually reformulate their SDIP; (ii) workshops to establish the evaluation and approval mechanisms and to socialize the system to government organizations including technician support for documenting plan details; and, (iii) training district staff in SDIP evaluation.

b. Improve Performance of School Management/Administration Personnel

71. The majority of project school management and administrative staff lack the capacity to manage schools at international standards. The project will improve the performance of project school managers and administrators by: (i) certifying school principals (and others) through a principal certification program; and (ii) qualifying administrative staff to operate new management systems.

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72. Certification of principals, vice principals and aspiring managers. The project aims to certify all Stream 1 NRS and selected Stream 2 and 3 principals and vice principals through a 250-day certification program. The program will focus on change management with a particular emphasis on the application of school-based management. It will develop the leadership and management skills required to direct a flexible, dynamic and responsive school within the context of increased accountability. MONE will sanction the program and establish policy that all NRS principals be required to achieve certification through the program and share professional development through their local organizations (MKKS). In some cases, districts may choose to use this program as a form of licensing individuals for candidacy of retention of leadership positions. The courses will be developed, pilot tested and delivered through partnership agreements between five of MONE’s provincial quality assurance institutes (LPMPs in Medan, Makassar, Surabaya, Jakarta, and Bandung) will act as a consortia and twin with international organizations or link with individual international experts to design and deliver this program.

73. Both the SMA and SMK certificate programs consist of two components: an overseas fellowship placement (2-week orientation and 6-week overseas placement) and a 190-day in-country training program. In the case of SMA schools, the overseas placement will occur prior to participation in the formal in-country instructional program. Three persons from each school will join the overseas program—the principal, a vice principal and a teacher (aspiring school manager). These individuals will assume the lead role in enabling change in their school. One certificate program module will be taken while the team is overseas. During this placement, each team will prepare a draft Change Management Strategy for their school. This strategy will be reformulated on their return through an in-school review process and submitted as a core component of the school’s first year’s accountability contract. SMK schools will stage the overseas placement for these same key staff at a later stage in the school development program rather than using the experience as a trigger for the school’s change program. The project will fund the 2-week orientation and the six-week overseas fellowships for each Stream 1 NRS team (300 persons from SMA and 140 from SMK). The expected result is the creation of the core of a NRS Change Management Team with a greater understanding and receptiveness for the more formal training to be conducted in the certificate program that will be officially recognized by MONE.

74. The school leadership and management certificate program consists of three streams. First is a series of 8 modules to develop leadership skills in the areas of school team building, institutional change, school-based management, personnel management, community and public relations, instructional program and curriculum, quality assurance, etc. These modules will be comprised of a combination of course work at an on-campus location and in-school projects and coaching. The second part am involves special training in management systems, ICT and English delivered through project organized training (management systems) and through authorized existing service providers (ICT and English). Team members scheduled for fellowships will first have to achieve required prescribed ICT and English competencies. A third component is similar to the third stream of short courses in the teachers’ certificate program (para 53). The project will finance technical assistance (10 international and 16 national person months of consultant support) to design and verify the certificate program through pilot programs. Also, 12 person months of national consultant and 32 person months of national advisor support will be provided to assist design the short-term courses. Schools will pay for course attendance through project block grants and will also pay for on-site coaching from project advisors/facilitators.

75. Administrative support staff in-service courses. The project intends to increase the capacity of school staff to operate the new management systems that will be installed. Staff will be trained in each system’s operation through 5-day courses. Administrators and managers

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from nearby schools will attend training at the NRS based on their decision to implement the systems and using funds from their own block grants. The project will fund national consultants (34 person months) to design and pilot test the courses and also contract, through local competitive bidding, one service provider to manage the delivery of the program. The provider will be responsible for system improvement or design, system installation and staff training. The cost of at-school installation and training services will be financed through the school’s block grant. NRS managers/administrators will also be encouraged to complete English and ICT courses to achieve competency levels specified by the project.

c. Improve Facilities, Equipment and Software 76. There are a wide variety of school needs for general campus and administrative facilities. The project will not provide for the construction of large new facilities. However, school development plans indicate some schools will request funds to improve general administrative offices, non-teaching facilities, and facilities that lack adequate hygienic conditions. Some equipment, software and facilities will be upgraded or procured. The project will fund the construction/rehabilitation of these facilities and the procurement based on approved school development plans. The project will fund 120 person months of national consultant input to assist schools (procurement and civil works). Construction will require on-site qualified supervision.

d. Increase Community Awareness and Participation 77. With decentralization, each school is required to have a school committee that has the mandate to monitor and evaluate school performance and other governance measures such as participating in school planning and ensuring fiscal transparency. Government regulations prescribe membership criteria: committees are comprised of parents, community informal leaders, and teachers. These committees require guidance in order to perform extended roles in NRS (e.g. trust account). The project will develop and implement a course designed to assist school committees in their roles with an NRS and to secure their direct participation in the school audit process. The project will finance 20 months of national consultant input and also it will finance one 3-day course to be delivered to a minimum of 3 representatives from each of a minimum of 160 NRS committees.

e. Establish Sustainable Funding Initiatives 78. Secondary education at international standards is expensive to develop and maintain compared with existing schooling. Many project inputs are long lasting (equipment, facilities, etc.) while others require substantial annual expenditures (maintenance, supplies, certification, examination fees, etc.). Such costs are beyond current funding allocations. Although the SDIP will budget for recurrent and investment expenses, it is imperative that schools, communities and government prepare for sustaining project financial contributions. The project will help schools to develop a sustainable strategy to establish or expand income generation activities and to advise government of their needs and funding strategies.

79. The project aims to assist project schools to develop capacity to generate income for school operating and development expenses. The project will finance 6 person months of international and 24 person months of national consultant input to: (i) identify operating efficiencies that can reduce costs and/or redirect resources; (ii) assist SMK production units to improve their operation and profitability: (iii) assist school committees to establish policies and practices to enhance their capacity to generate more revenue; and (iv) assist each school to identify its income generation potential, devise a marketing plan, and develop mechanisms and activities accordingly. The project will also fund 240 person months of Contract Education Staff

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to assist in school production units. Modules on entrepreneurship and income generation will be incorporated into training programs for school principals, administrators and selected teachers. The intent will be to change behavior to adjust school personnel to the blend of business management and traditional teaching-learning institutional environment required.

f. Institute School-based Quality Assurance Programs 80. In order to sustain the project investments, quality assurance measures must be in place to ensure schools continue to operate at standards achieved during the project. This will be accomplished by: (i) establishing the criteria for quality assurance and guidelines for assessment and MONE approval; (ii) enabling NRS to obtain quality assurance recognition based on these criteria and perhaps international certification (SMK policy requires all NRS schools to complete ISO certification); and, (iii) developing the capacity of selected individuals to assist schools complete self assessments based on the quality assurance criteria (e.g. independent consultants, LPMP, P3G).

81. The aims are to ensure that project schools maintain high quality instructional programs and school management during all phases of development and also have demonstrated commitment and capacity to sustain standards achieved. Initial project inputs will provide schools with standards, curriculum and self-assessment protocols. A series of specially designed courses for principals, teachers and staff will be required to undertake and sustain quality assurance in each project NRS. Some schools will conduct self assessments in parallel with external maintenance reviews (e.g. SMK and ISO). The project will fund SMKs, via their block grants, to achieve international ISO certification through a recognized quality assurance agency or firm (available in Indonesia). Also, block grant funds will be provided to establish procedures to maintain the ISO guidelines. The expected result is that each SMK NRS will have achieved ISO certification by project end.

82. SMA schools will not pursue ISO certification. Rather, they will be assisted to introduce quality assurance initiatives based on criteria and procedures prepared through technical assistance. The project will fund international consultant (48 person months) and national consultant (100 person months) inputs to design and train individuals to implement a quality assurance program for SMA candidate national reference schools and also to assist SMK schools in ISO applications via training P3G staff and other designated education service providers. The consultants will design and pilot test a 2-month training program to prepare selected staff and education service providers to be quality assurance advisors for NRS assisted by 108 person months of national advisor support. The technical assistance also will design and implement a 5-day program for each SMA NRS to prepare for, and commit to, a quality assurance program as part of their accountability contract. Schools will receive funds through their block grant to institute quality assurance systems.

3. Output 3: Increased Equity and Provision of Special Services 83. The project intends to assist qualified students from poor and otherwise marginalized families to access quality education. It also intends to assist qualified students who live beyond the normal NRS travel distances. All such students will be eligible for support on the basis of merit as determined by project guidelines. Many students from poorer families have difficulty entering better quality schools due to the cost. Even when enabled to join such a school with scholarships or grants, they tend to feel stigmatized and de-motivated when mixed with students from more wealthy families. This project will enable poorer students to enroll in project schools and also provide necessary support services. These equity issues will be addressed by: (i) ensuring Streams 1 – 3 NRS institute transparent and accountable admissions policies; (ii) provide targeted student financial and academic support services; (iii) provide special social

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services and facilities (see also Output 1c); and (iii) enable school committees as the responsible party for ensuring equity of opportunity (see also Output 1d). The project will provide 144 person months of national consultant input to design and implement this overall program, supported by teams from within the directorate implementation units. Jointly, these individuals will assist to enable and support the overall approach to student admissions, compliance with policies, and support for implementation of student scholarship and other student support schemes.

a. Develop Transparency, Accountability and Equity in Admissions 84. The project will not impose a standardized approach to school admissions given differing needs and circumstances; however, there will be a guideline on the number of new admissions that should cater to lower income and geographically disadvantaged students. School committees, consistent with government policy to promote school-based management, will determine and be accountable for school admissions policy within this guideline. This also has to occur within the regulatory framework provided by district, provincial and national governments. School committees will have the primary role in implementing targeted financial and academic support to disadvantaged students.

85. Each NRS will be required to make public its admissions policy, selection criteria and procedures and its structure of fees and other required parental contributions. These will be published, presented at public meetings, broadly socialized with JSE schools, and readily available on request to prospective candidates for admission. The school committee will ensure student selection is consistent with the published criteria and, by requiring full disclosure, the opportunity for circumvention of the selection rules will be reduced.

86. For an SMA NRS the eligible candidates will be those graduating from any JSE schools within the province in which the NRS is located.27 SMK, because of their specialist nature, will continue to recruit from outside their province. The project will work with each school to establish a minimum target for recruitment from provincial JSE that are not the traditional feeder schools.

b. Provide Targeted Student Support Managed by NRS

87. Selection will continue to be based on performance in the national junior secondary examinations at the end of year nine. But, the project will encourage schools to set entry requirements that do not rely purely on examination results, in order to include capable students from disadvantaged families who will not have had the benefits of more established schooling. Provision of special services will be an integral part of the SDIP and funded from the block grant managed by the schools. The project will assist schools to institutionalize both financial and physical student support services so that they become established financed services that are manifestations of their continuing commitment to equity (funded partially through self-financing and also through government contributions).

88. Financial support. The project will assist schools to subsidize the costs of school attendance for some students in order to provide incentives to recruitment. School committees will have the discretion, based on the school’s admissions policy, to provide financial assistance for either transport or accommodation to students originating from distant JSEs, dependent on student’s circumstances. Given regional differences, each School Committee will decide the rates to be paid. The committee will subsidize economically disadvantaged students in three 27 Schools must also provide provision for students entering from other SSE schools after completion of their first

year of studies. In SMK NRS there is an expectation that students who have demonstrated high skills will move from a non-NRS to an NRS in the second or third year of their studies.

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ways: by waiving all fees; by partial fee waivers and by subsidizing transport or accommodation costs.

89. A system of fee waivers is in line with the current practice of many schools of charging differential rates depending on an assessment of the ability to pay. A system of cross-subsidy is common for those already enrolled. The novelty of this project’s arrangement is that it is being extended to those who have not yet enrolled. Students eligible to receive financial assistance either because they live far from the NRS or because they qualify on the grounds of relative poverty must be informed whether or not they will actually receive financial support in advance of entry into the senior secondary school. The school’s offer of financial support must therefore be part of the admissions process.

90. Financial support will initially be provided for entrants into the first year and those students should expect to continue to receive support throughout their time in the school subject to compliance with terms and conditions of the scheme.

91. Academic support. Widening the geographical and socio-economic catchment will mean that some entrants will not enter the NRS with academic backgrounds and study skills equivalent to those entering from more advantaged JSE. For these students, the project will recognize the need for orientation and preparatory bridging programs in study skills and specific subjects, such as English and ICT organized during the month’s holiday prior to the start of the academic year. Also, it is expected that additional classes will also be required for these students throughout their first year. Funds will be available to schools from their block grants to develop tutorial support programs, which they will manage and provide either in-house or on a contracted-out basis. The project will develop guidelines for the provision of academic supplementation, including (i) a clear statement of the purpose and intended outcomes; (ii) specimen terms of reference and code of conduct to regulate service providers; (iii) indicative benchmarks that schools can set against which their success will be assessed.

c. Provide Special Social Services and Facilities 92. Given increased pressure on all students to significantly improve their performance in project schools, the poor, minorities and to some extent girls will face social pressures and stresses that will differ from more socially-economically advantaged students. The aim of this activity is to assist such students to cope with these demands and to provide special services. The project will fund activities to: (i) expand guidance and counseling programs to provide services designed to help students cope with the emotional challenges faced; (ii) a special training program for NRS teachers and relevant staff to recognize “at-risk” students and refer them to counseling services; and (iii) construct/rehabilitate dormitory facilities that accommodate poor and geographically disadvantaged students. The project will contract an education service provider to develop and deliver a 2-week training program for counselors in all NRS with the expected result of special coping services established in each NRS. In addition, the project will finance facilities such as dormitories, toilet facilities, and wheelchair access based on school development plans.

d. Enable School Committee Responsibility 93. School committees will be expected to report the results of their targeted financial and academic support programs in terms of numbers of students, contact hours and costs. They will also be required to conduct an annual self-evaluation of their provision in terms of the academic progress of the students involved. The prime purpose of this process will be to enable the schools themselves to assess the effectiveness and value for money of the student support provided and the wider implications for admissions policy.

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4. Output 4: Foundation for Enhanced Policy and Strategy Established 94. The project provides a unique opportunity to evaluate project benefits, to undertake research on in-school improvement models that can be replicated, and to conduct an in-depth analysis of the sub-sector. Both provide the basis for policies and plans to increase the number and the effectiveness of schools with the ultimate aim of an improved workforce. Three interventions aim toward a policy development framework and a long-term strategic plan for school improvement: (i) project evaluation of benefits and impact including research to identify alternatives for establishing, enabling and increasing the number of schools at international standards – models of effective schools; (ii) analysis of senior secondary problems and issues with an emphasis on causes and consequences relative to responsiveness to labor market needs, costs, equitable delivery of quality standards, management effectiveness and resource use efficiency; and (iii) identification of strategic directions and policy options for long-term planning. Each of these interventions is included in a parallel technical assistance package provided by the ADB (see Appendix 8).This technical assistance grant also includes the processes involved in conducting an independent evaluation of the core loan project implementation whereas activities related to compliance (monitoring) are included in the loan project design (see Appendix 14).

C. Special Features 95. International Standards: This project will help to establish guidelines on international standards relative to vocational and general SSE. The project will provide a research opportunity to assess interventions that improve quality and determine the associated costs. Given the different types of schools and different stages of development, the project provides a unique opportunity to determine school effectiveness models. A compendium of international standards will assist the work of the new Center for National Education Standards (Badan Standard Nasional Pendidikan) to identify suitable standards for National Reference Schools. Also, this will enable the National and Provincial Accreditation Boards28 (BASNAS) on criteria to accredit schools and programs at high performance levels. The focus on standards will include curriculum certification, tools to assist schools to complete self assessments, provincial and district education organizations to conduct school evaluations, and for all stakeholders to develop realistic targets and budgets.

96. International Certification: Both Directorates support the opportunity for schools to pursue international certification for curriculum. Some schools will seek certification for a few subjects; others, an entire program. In the latter case, students can be awarded an overseas senior secondary diploma/certificate as well as (or in lieu of) the national SSE award.

97. Merit Admission: Project schools are to include a provincial rather than a district catchment area and students are to be admitted based on merit. In some circumstances (e.g. SMKs) students may be accepted from other provinces. Merit is determined on the basis of student standings on the national junior secondary examinations conducted for Grade 9 students and, in some cases, supplemented by additional testing by individual schools. A special focus is directed to supporting the admission of qualified poor students.

98. Needs-based development priorities: Schools will prepare their own development plans and investment options through in-school and community participative processes. The level of detail required for project approval requires schools to justify all activities, establish priorities, and account for annual forecasted targets. Interventions, therefore, are truly school driven and targets can be modified semi-annually to reflect emerging conditions. 28 Provincial Accreditation Boards are responsible for SSE school accreditation. District Accreditation Boards are

responsible for basic education. Accreditation is school based and not program-based (i.e. within a school).

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99. School Managed Funding: School project funds will be allocated via block grants according to the approved annual school development plan. The funds will be received through a dedicated trust account for each school. This account, supported by a project designed finance and accounting system, provides for full disclosure of all income and expenditures as part of a school’s commitment to good governance. Schools are obliged to achieve a certain standard prior to being a full beneficiary of the block grants. MONE has determined criteria by which schools must demonstrate a state of readiness (Appendix 11).

100. Catalog of Accredited Courses: MONE will approve courses that will be offered as part of the project. Schools will be required to participate in these ‘accredited’ courses rather than designing training in an ad hoc manner. These courses will be listed in a Project Training Catalog of Accredited Courses, including the names of approved trainers for the courses. Such training will be delivered via P3G and other authorized education service providers (EPS). Therefore, training offered in different locations will adhere to consistent outcomes and testing standards. Schools will have limited discretionary funds for training priorities determined by the school and available from non-project sources. Participants in project approved courses will pay their registration fees from the school’s block grant allocation.

D. Cost Estimates 101. The total cost of the project is estimated at $258.8 million equivalent. The Government has requested a loan of $180.2 million, representing about 70% of the total project cost. The Government will provide about $78.6 million equivalent as counterpart funding. Details of the cost estimates and financing plan are in Appendix 9. The indicative cost estimates are shown in Table 1.

E. Financing Plan 102. It is proposed that ADB provide a total loan of $180.2 million from its ordinary capital resources (OCR). The Borrower will be the Government of the Republic of Indonesia. ADB will finance 100 percent of the foreign exchange cost of the Project and 64 percent of the local cost (Table 2). The Government will finance about $78.6 million equivalent in local cost. The OCR loan will have a term of 25 years, including a grace period of 6 years, with interest determined in accordance with ADB’s London interbank offered rate-based lending facility (Libor) for US denominated dollar loans, and will carry a commitment charge of 0.75 percent per annum (see Appendix 9).

Table 1: Project Costs by Component ($ ‘000’s)

Project Output Foreign

Exchange Local

Currency Total

(‘000’s) % Base

Cost 1. Improve Student Learning Outcomes 5,991 74,836 80,827 452. Improve School Management 2,640 50,000 52,640 293. Increase Equity & Special Services Provision 0 24,183 24,183 134. Project Evaluation and Policy and Research * 0 6,140 6,140 35. Project Management and Implementation 1,259 15,438 16,696 96. Taxes and Duties 0 47 47

Total Base Cost 9,890 170,643 180,533 1007. Contingencies

A. Physical 494 8,532 9,027 B. Price Escalation 597 38,637 39,234

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Sub-total 1,091 47,170 48,261 8. Interest Charges 29,982 0 29,982

Total Project Cost 40,963 217,813 258,776 Percentage 16 84 100

Base cost as of November, 2005 * Policy and Research activities mainly assigned to a parallel ADB TA grant.

Table 2: Financing Plan ($ million)

Source Foreign Exchange

Local Currency

Total Cost

Percent Share

Asian Development Bank 41.0 139.2 180.2 70 Government of Indonesia 0.0 78.6 78.6 30 Total 41.0 217.8 258.8 100

F. Program Coordination, Management and Implementation Arrangements

1. Project Coordination and Management 103. The executing agency will be the Directorate General for Management of Primary and Secondary Education. The key directorates involved in project management and implementation are the Directorate of General Senior Secondary (Dikmenum) and the Directorate of Technical and Vocational Education (Dikmenjur). The project organization is outlined in Appendix 10. including a review of management capability for implementing this project. This includes a project steering committee, a central project coordination unit (CPCU) and individual directorate project implementation units (PIUs for SMA and for SMK). Roles for key government agencies (provincial and district education offices, LPMP, P3G) are included in the tasks related to compliance and as potential education service providers (Appendix 14) and the independent evaluation, research and policy development consultancy (Appendix 8). The project steering committee will include representation from the Directorate General for Education Personnel Development and Quality Improvement (Mutendik) which will take a lead role in the parallel TA (Appendix 8).

2. Implementation Procedures 104. The project has been structured based on three streams of schools. These will access project inputs at different times and in different packages depending on their respective development plans and also based on the principle that the 160 candidate reference schools in Stream 1 will receive greater priority. The delay between the first and second streams and between second and third streams will allow a quasi-experimental evaluation methodology designed to assess the achievement of outputs, outcomes and impacts. This provides the opportunity to determine whether this project goal has been achieved and also to determine the extent to which project processes and project activities are the most cost effective and efficient strategy to achieve this goal.

105. Project support to schools is based on several parallel phases and involves a range of contributors. Each school must demonstrate achievement of project criteria for state of readiness prior to being eligible for substantial block grant funds that will be allocated on the basis of their approved school development and investment plan (SDIP). During the first 18 – 24 months, the project will focus on the design and pilot testing of training materials, many of which

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will be certified by the project and listed in the Training Catalog. Ultimately, these courses will be certified by MONE (see Section V, Assurances). During this period, the project will conduct train-the-trainer programs to establish a cadre of qualified and MONE accredited National Education Technical Advisors (NETA). The intent is to establish these advisors on a regional and provincial basis in order to provide for greater accessibility to training, guidance and support. During these initial project months, schools will devote their efforts to improving the quality of their staff in English and ICT through project recognized service providers. This will ensure staff can benefit fully from international support and will also increase their ability to access support materials through the internet via a Digital Clearinghouse. Schools will also be encouraged to establish a Teacher Resource Center to provide an in-school facility for teachers to pursue professional development initiatives.

106. Schools will be required to produce an Accountability Contract as part of the SDIP process. This Contract will be monitored each year and will dictate future project investment and support. All income and expenditures will be reported monthly and all transactions will be done exclusively through a project specific Trust Account that will be governed by strict public disclosure practices. Block grant investments after their 4th year of participation will gradually be reduced as schools assume greater financial self reliance for their investment plan requirements by soliciting greater financial support from district and provincial agencies and from alternate sources. MONE will assist those NRS that achieve international standards via either de-concentrated fund allocations or special block grants after the project is completed (see Section V, Assurances).

107. The project will compile quarterly reports based on monthly compliance reporting from schools and selected service providers. Schools and government training agencies will be the beneficiaries of block grants. Participation by district, provincial and other government personnel will be secured by their involvement in training programs that require participants to apply knowledge and skills via project specific monitoring, evaluation or quality assurance activities. Support for their participation will also occur through block grants rather than setting up a complicated and expensive provincial and district project implementation unit support system. Other beneficiaries will include those agencies and individuals who are contracted to provide services in accordance with project issued terms of reference.

108. District agencies will participate in the project by authorizing the school development and investment plan submission. Selected district personnel will be trained to assist in project tracking and monitoring, and also in selected data collection relative to project research. Provincial personnel will participate through their reporting annual progress on project interventions and by their facilitating provincial and regional dialog on project innovations, policy articulation and strategy options specific to their circumstances. Central staff will be trained by the internationally tendered consultancy services in project management, compliance monitoring, beneficiary assessment, project evaluation and special research studies. A key aspect of their involvement will be to develop capacity to sustain a lead role in disseminating the project experience to other senior secondary schools and to the overall secondary education development system.

3. Implementation Period 109. The project will be implemented commencing in 2006 (Appendix 12, Implementation Schedule). It is a 6-year project.

4. Procurement 110. All procurement will be completed in accordance with ADB and GOI rules and regulations. Schools will be awarded block grants to conduct procurement independent of

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central control. The PMU will provide technical assistance and help to coordinate procurement in an effort to ensure efficiencies and compliance. Key school personnel will be trained to ensure that block grant guidelines are well understood and rules are adhered to. The project will limit the amount of funds to be expended on equipment, building renovation and new classroom construction. Large scale construction will not be supported by the loan.

5. Consulting Services 111. There are three internationally tendered consulting contracts (Table 3) and Appendix 13. Other contracted technical assistance are local awards for selected course design and pilot testing initiatives managed primarily through the PIUs, P3Gs, LPMPs and some independent education service providers (e.g. English language schools). In addition, the PIUs will hire selected support (e.g. procurement, civil works, student support services advisors and SDIP facilitators along with technician support for computer software installation and operation).

Table 3: Consultant Services (person months)

Consultant Packages Foreign Pers Mths

National * Pers Mths

Total Pers Mths

1. Project Planning, Coordination, Accountability 36 96 132 2. Project Management and Implementation 0 468 468 3. School Quality Assurance Program 48 208 256 Total Person Months 84 772 856 * National person months include 592 for national consultants and 180 for national advisors. Advisors are individuals who have essentially no consultancy experience but who are recently retired school practitioners.

6. Advanced Action 112. The Government has requested advanced action to assist in starting project activities on time. The Executing Agency will prepare the ICB procurement packages for these three consultancy services and issue the tender early in order to expedite selection and mobilization for the first quarter of loan implementation. ADB has agreed on the understanding that such action does not commit ADB to finance the project.

7. Use of Counterpart Funds 113. Counterpart funds will be 30% of the total project cost. Cost sharing by activity will be applied based on the principle of maintaining an overall 70:30 ADB and GOI counterpart funding agreement. Where possible, each activity will be funded solely by one or the other funding source rather than cost sharing within an individual activity. This will substantially reduce the complications of financial allocation and reporting. At all times the agreement of the overall cost sharing formula will be adhered to and reported on a quarterly basis.

8. Disbursements and Reporting 114. To expedite the disbursement of loan funds, the Government will establish an imprest account at the Central Bank of Indonesia. This account will be established, managed, replenished, and liquidated in accordance with the ADB Loan Disbursement Handbook, dated January 2001, and detailed arrangements agreed on by the Government and ADB. The ceiling for the statement of use of expenditure procedures will be US$100,000 (Loan Disbursement Handbook, para. 9.17). The initial advance to the imprest account should be enough to cover the expenditures for the first six months but not exceed US$2 million. The flow of funds will be approved by the PMU. The PMU will provide funds directly to senior secondary education

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schools via block grants, including funds for physical facility improvements, construction and equipment.

9. Accounting, Auditing and Reporting 115. The Government will ensure that records and accounts are maintained to identify the goods and services financed from the loan proceeds. Separate project accounts will be maintained and audited annually in accordance with sound auditing standards acceptable to ADB. This applies equally to funds provided to schools through the designated school Trust Account. A separate opinion on the use of the imprest account and statement of expenditure will be included in the annual audit report. Certified copies of audited accounts will be submitted to ADB no later than 9 months after the closing of the fiscal year. The PMU will prepare quarterly reports on the implementation of project funded activities including detail by individual school block grant. The report will be in a format acceptable to ADB and will indicate progress made against annually established targets, problems encountered during the quarter, steps proposed and taken to solve problems, compliance with loan covenants, and project activities to be undertaken during the next quarter. Given the use intensive use of school block grants, annual targets will be adjusted to respond to the needs-based project design model. A project completion report will be prepared after the full completion of financial reporting from participant agencies and schools but, no later than 6 months after physical completion of the project.

10. Program Performance Management System 116. The ADB Project Performance Monitoring System provides for the PMU’s project monitoring framework based on the determination of criteria for monitoring compliance and achievement in accordance with results-based project assessment. Results-based performance reviews will be required of each target school as part of their annual accountability report based on their annual school development and investment plans. Wherever possible, data will be disaggregated to provide for gender and school level information, including tracing the impact of the project on placements of graduates in higher education or employment opportunities. School performance reports will be summarized by the project management and included in the PMU’s annual report to the ADB.

11. Project Review 117. Project impact and benefit evaluation will be measured quantitatively and qualitatively based on an ADB approved program to be submitted by the PMU no later than 6 months after project commencement. The project approach will be long term, and monitoring will be process- and output-oriented consistent with the project design strategy (Appendix 14 Compliance Monitoring Framework and also Appendix 8 Proposed ADB TA Grant). Where possible, monitoring will use criteria established to determine national and international SSE standards. Comprehensive reviews of project performance will be conducted annually for each NRS, in the third year for overall project implementation (Project Mid-Term Review) and at the end of the project (MONE Project Completion Report).

118. ADB will conduct annual reviews and a mid-term review that will focus on the success of implementation procedures and the nature of the models and mechanisms developed for in-school quality improvement and sharing support materials among professional groups. These ADB reviews will also officially record the previous year’s targets and accomplishments and any also changes to current year targets given adjustments made due to the needs-based program design. The ADB mid-term review will be conducted shortly after the submission of the PMU’s third year review. It will focus on overall benefits and achievements, project target adjustments, and restructuring and reallocation of project funds. Financial compliance monitoring will be based on agreed criteria and guidelines established by the PMU in consultation with ADB as

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part of the parallel grant which includes evaluation and research.29 These guidelines will ensure that funds flow efficiently, transparency is maintained, and audits are conducted annually.

IV. PROJECT BENEFITS, IMPACTS AND RISKS

A. Project Benefits 119. Better Quality SSE Schools: The project will enable high performance schools through the establishment of National Reference Schools. Research on the models and strategies applied in these schools to create more effective and efficient schools will be disseminated to other SMK and SMA schools in an effort to move all schools toward international standard practices.

120. Better Quality Graduates: The project will concentrated on selected subject areas and improve the teaching-learning process by certifying teachers through project prepared curriculum, by increasing the availability of teaching-learning materials and equipment, and by improving student and teacher support and school management services. Given the requirement of merit-based admissions, an increased number of disadvantaged students will have the benefit of a higher standard of education (see Appendix 15 for List of Beneficiaries).

121. Better Quality School Personnel: The project includes a requirement that all schools develop a career plan for each of their staff as part of their planning and investment program (SDIP). Certificate and other training programs will be designed and offered to a majority of staff in all NRS as part of a whole school development program. These certificate programs will be formally recognized by MONE.

122. National Standards: The project will support the new competency-based Curriculum 2004 that all National Reference Schools (NRS) will offer by assessing and institutionalizing education criteria for performance excellence. These criteria will help educators to: respond to rapidly changing conditions; ensure openness and transparency and a commitment to ethical behavior; provide increased value and quality for students, parents, and community; and, align resources to achieve greater recognition of senior secondary education. The focus on standards will be linked to support of GOI policy dialog.

123. International Standards: NRSs will be introduced to continuous quality assurance management systems and procedures based on internationally recognized quality principles (e.g. ISO, TQM, Balanced Score Card, etc). Selected field specializations in SMKs will integrate internationally accredited curriculum in order to produce graduates with sufficient skills to enter international companies based either in Indonesia or abroad as well as being better qualified for national company placements. SMA students, based on individual school priorities, will have the opportunity to take international curriculum studies conducted in English in parallel with the requirements of the national curriculum.

124. Networks: The project will support mechanisms to develop networks for establishing and sustaining professional learning communities. The project will enable a national horizontal alliance among project school teachers and principals to share materials, innovations, good practices, etc. It will also support vertical networking among project and, were possible, with non-project schools. Although there is no blueprint for an effective network, the project will provide substantial experience in models suited to SSE.

125. Professional Support Service: The project will provide for the certification of individuals who will be acknowledged as national education service advisors (NETA). These individuals will work jointly with education service providers (ESP) that have been assessed and authorized by 29 Appendix 8, ADB Technical Assistance Grant.

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MONE as qualified to assist in the management and delivery of key project certificate programs and other project interventions.

B. Impacts a. Sub-Sector Impact

126. There are no established models in Indonesia for high performance standards within the education sector. There is a need for examples of processes used to create the culture required. The project will introduce change management practices relative to different ways of managing people, greater communication and transparency, improved incentives, a cooperative and collegial commitment to a “professional learning community”, and self-directed teamwork. Personal and group accountability practices are embedded in the processes and procedures designed to move schools to higher standards.

127. School Development Planning and Accountability: Schools are required to prepare a development plan and investment proposal based on broad consultation and participation among the entire school community. The project will institutionalize in-school planning and accountability systems aimed at setting benchmarks for higher quality standards as a foundation for MONE to institute nationwide.

128. Improved Student Achievement: Project interventions will introduce a continuous student assessment process whereby individual student monitoring will provide for more care and scrutiny of student progress by the school, the student and parents. This will lead to more direct student support and is integral to substantive changes in the process of teaching-learning.

b. Poverty Impact 129. Placing an emphasis on poverty is not a big factor in enrolment growth but increased income has a substantial impact on improved transition and student retention rates.30 This project will support improved wage premiums by producing better qualified graduates, which is a key strategy to increasing family incomes through improved job placement.

130. Improvements in the quality of SSE and the number of SSE graduates should result in demonstrated local, regional and national commitments to poverty reduction, to increased individual resistance to their vulnerability to poverty, and to education strategies linked to local economic development (Appendix 16, Poverty Strategy and Social Analysis). Improved SSE at the district level ties directly with the MONE strategy to enable district comparative advantage by linking SSE to local social and economic development initiatives.

c. Gender Impact 131. Present gender disaggregated SSE enrolment data is slightly misleading. Different types of schools have different gender gaps. Government general secondary schools have ratio of 48:52 in favor of females; government vocational SSE schools are almost exactly gender balanced; while private schools are strongly male biased (55:45 in SMA private; 60:40 in SMK private). These national figures conceal major inter-Provincial differences and also considerable program variability. The project’s initiative to create school-level data will help to set a foundation for improved assessments of system trends and policy development.

30 A 10% increase in district poverty levels is associated with a 0.65% decrease in primary, a 1.69% decrease in

JSE, and a 2.47% decrease in secondary enrolments. Income is also a key indicator. A 10% increase in average per capita income is associated with a 23% increase in primary, a 119% increase in JSE, and a 210% increase in SSE enrolments (Source: Sub-Sector Overview, ADB TA 4239-INO).

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132. Another gender indicator is economic status based on income and wage variables.31

Female income and wages are approximately 50% - 75% of male income and wages throughout Indonesia. Reducing the size of the informal sector by 10% through more formal employment closes the wage gap by 0.3%. The project design, however, is predicated on NRS admitting students on the basis of merit. This may or may not change the gender ratio.

C. Financial and Economic Impact 133. Statistics indicate a direct relationship between education and income premiums. Increasingly, the public is aware of this scenario resulting in greater demand for an SSE-level education that prepares students for better, and sometimes direct, entry into the labor force and associated higher wages. Similarly, SSE entry into work via tertiary education provides even greater opportunity for higher wages. The project will support greater participation rates and improved quality of output.

134. With greater numbers of better qualified SSE graduates and more tertiary-level labor, business and industry will expand, wages will improve and economic growth will occur. Overall, there will be an improvement in the capacity of the labor force and correspondingly, greater ability within Indonesia to deal with the competitive economic global environment.

D. Institutional Impact 135. Education planners have recognized that it is difficult to have regional autonomy and still maintain equity among regions. The project provides an opportunity for national, provincial and district agencies to provide collaborative effort to institutionalize cost effective interventions.

136. The extent to which schools and districts ensure that all their decisions, actions, and stakeholder interactions conform to recognized moral and professional principles are critical at this stage of Indonesian development (Appendix 17, Trust Account and Block Grant Management).32 Each school has to enunciate these principles as the foundation for their organizational culture and values of “right and wrong”. MONE also has to abide by these principles, particularly in the issuing of formal recognition for successful completion of certificate training programs. These principles are embedded in the project in order to enable ongoing communication and reinforcement of practices that exhibit ethical practices.

E. Environmental Aspects 137. There are limited but real environmental risks associated with this project (Appendix 18). To some extent, each SMK program can be potential risks to the environment. Among the field specializations selected, those that pose greater risks are Hotel/Hospitality, Automotive Technology and Horticulture. Programs will include specific modules dealing with environmental impact assessment and environmentally friendly management. In Automotive, the program requires preventive measures to ensure oil and associated waste is recycled. Similarly, in Hotel/Hospitality, waste management and environmentally friendly (green) practices for the management of bedding, towels, garden pest control and fertilizers, etc. will be required. In tourism, eco-friendly tourism management represents a core aspect of the program. In addition, Horticulture programs must focus on the use of safe chemicals for fertilizers and insecticides, crop rotation and alternatives to avoid “using up” the natural nutrients in the soil, effective use of water and other environmentally sound practices. Within SMA schools, there are issues of the disposal of supplies such as paper, printer cartridges, paint and other art supplies, etc. as well

31 ‘Income’ is determined by dividing the percentage of total income earned by females with the percentage of

females in the labor force. ‘Wage’ is the ratio of female non-agricultural wages to the same male wages. 32 See also Fraud and Anti-Corruption Report, ADB TA 4239-INO, October 2004 (Supplementary Appendices)

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as the appropriate use and disposal of hazardous waste. Principals, teachers and students will demonstrate an understanding of the mechanisms and the costs required to ensure environmentally sustainable practices and a commitment to environmental awareness in the broadest sense.

F. Project Risks

a. Political Risks 138. The development of NRS as a core component of overall SSE improvement requires partnership between the central, provincial and district governments. There remains some confusion among these agencies as to their precise roles. Securing close partnerships between districts and provincial authorities, along with collaboration with central government, requires frequent consultation to ensure common ownership of the project and the sustainability of project outcomes. The project provides a unique opportunity for such interactions and will enable such dialog.

b. Economic and Financial Risks 139. The project will depend to some extent on synergies between school and community, school and industry, and with the private sector (Appendix 19, Sustainability Analysis). These partnerships will enable greater community responsibility for SSE which will encourage greater financial support for the sector. In the short term, it is unlikely that government will be able to assume the full costs of developing all SSE to acknowledged national standards or to accredited international standards (Appendix 20).

140. Should school ambitions be greater than the available funds, there is a risk that schools will attempt to secure additional funds through increased fee pressures on parents. This could impact the accessibility of some students. If the responsibility for ongoing funding for inputs to improve and sustain quality shifts from government to schools, then the appropriate regional, provincial and national social and economic benefits will be lost (Appendix 21, Economic Analysis). The project provides scholarships to assist partly with this scenario; however, there will be a limit to the ability to increase such support with schools that introduce inordinately high fees. MONE, however, has committed to provide “topping up” funds to project schools, beyond the district allocation, in order to sustain the international standards initiative (see Section V, Assurances).

c. Capacity Constraints 141. At the school level, the principal is the key to overall school leadership and management of the project interventions. Principal appointments and terminations are now the responsibility of the district head and they can replace principals without consultation. It is expected that the central government will secure agreements from districts to prevent such occurrences if the individual is deemed to be key to project success. It is also expected that the project’s School Leadership and Management Certificate Program will instill capabilities among senior school officials to ensure sufficient capability to perform the tasks required.

142. Introducing school reform programs is demanding. Experience elsewhere suggests that schools engaged in such improvement processes can easily lose momentum and the losses are more than the gains expected. Careful monitoring of the level of acceptance, ability to cope, and areas of resistance will be critical to monitoring the most suitable approach in each individual school. Also, adequate support and guidance from technical advisors and support from district, provincial and central officials will be required.

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V. ASSURANCES

A. Specific Assurances 143. In addition to the standard assurances, the Government and MONE have given the following assurances which are incorporated into the legal documents. Additional Covenants will be determined as part of further project assessment.

144. MONE will issue an instruction to require each candidate NRS to prepare a school development plan and investment proposal (SDIP). The presentation of such a plan will affect the school’s eligibility and the degree of the project’s annual investment.

145. MONE will require each SDIP to be authorized by the District prior to its submission.

146. After the loan funds have expired and as part of Central Government’s commitment to sustain project interventions, MONE commits to provide to NRS that achieve and maintain international standards, an annual allocation of “topping-up” funds, perhaps through de-concentration/assistance task and/or block grants, beyond the regular funds provided through the district budget.

147. MONE, prior to the end of the first year of the project, commits to sign a MOU with participating districts and provinces to articulate each party’s commitment to manage and maintain schools at international standards established through the project. Where possible, this MOU will include a commitment to disseminate the experience gained through their National Reference Schools to other SSE schools within their districts. This MOU may also include a commitment to replicate the international standards in other schools.

148. This MOU will also include agreements that districts issue a policy statement that confirms the acceptance and admission of qualified students who reside outside of the district boundaries prior to MONE issuing block grants in accordance with SDIP approvals. Also, the MOU will include agreement that districts agree to retain principals in each NRS for the duration of the project, subject to the individual principals successfully completing the School Leadership Certification and Licensing Program and the subsequent performance evaluations. This assurance is subject to the rules and regulations governing civil service retirement.

149. MONE, prior to the end of the first year of the project, will cooperate with the Badan Standard Nasional Pendidikan on the articulation of SSE high performance standards in order to assist to institutionalize new senior secondary education standards in the school accreditation process which will acknowledge ‘schools at international standards’.

150. MONE commits Directorate General for Education Personnel Development and Quality Improvement (Mutendik) to form a joint task team with the Directorate General DGMPSE. Representatives from these agencies will work as senior counterparts with the proposed parallel ADB technical assistance grant (Appendix 8) team for SSE Policy and Strategy Development and Project Evaluation. MONE agrees to use this TA grant to complete research on quality standards and practices that are applied through the project as part of the process of enabling international standard SSE throughout Indonesia. For this aspect of the overall project, the lead executing agency will be the Directorate General for Education Personnel Development and Quality Improvement (Mutendik).

151. MONE commits the Directorate General for Education Personnel Development and Quality Improvement (Mutendik) to issue new school leadership and management standards for school principals and institute a licensing system to qualify principals according to these program standards. Such acknowledgement will include this DG’s issuing formal recognition of successful completion of the program standards included in the “International Standards School Leadership and Management Program”.

33

152. MONE commits the Directorate General for Education Personnel Development and Quality Improvement (Mutendik) to issue formal recognition of successful completion of project designed in-service “International Standards Teacher Certificate Program” (250-day program). MONE also commits to work toward formal recognition of this Certificate Program with selected local universities to establish advance credit toward higher education studies (e.g. Masters Degree – S2) or other related recognitions.

153. MONE, through the DG Mutendik, agrees to issue formal recognition for individual courses included in the “International Standards School Leadership and Management Program” and the “International Standards Teacher Certificate Program” by accrediting these courses through their inclusion in a formally recognized “Training Catalog of Accredited Courses”.

154. MONE commits to training and certifying individual national education technical advisors (NETAs) who are ‘accredited’ to teach courses included in the Training Catalog and to ensure that formal recognition for teachers, principals and other individuals who complete these courses occurs only if courses are taught by these certified NETAs.

155. MONE agrees to complete an assessment of potential education service providers (ESPs) and issue a list of groups, agencies, NGOs, universities, etc. that are authorized to manage and deliver courses designed by the project (e.g. International Standards School Leadership and Management and Teacher Certificate Programs, School Management Information and Reporting Program, School Finance and Accounting Program, etc.). Such authorized ESPs will be obliged to deliver courses listed in the Training Catalog of Accredited Courses by using MONE certified national education technical advisors (NETAs) in order for program participants to receive formal recognition for successful achievement.

156. MONE commits to incorporate findings on quality improvements instituted through the project into the planned MONE “Professional Teacher Certification Program”.

157. MONE commits to incorporate findings on quality improvements instituted through the project into pre-service teacher education curriculum.

158. MONE commits to provide the project with access to the most recently applied PISA (OECD) test questions available through the National Testing Center in order to establish the project administered testing regime which will be applied to NRS students as part of project evaluation studies.

159. MONE agrees that private as well as public schools will have the opportunity to become a National Reference School (NRS). The Government’s program to extend the project experience to serve other SMA and SMK schools will include both public and private schools. The classification of schools as candidate NRS schools will reflect the fact that the schools have been chosen to benefit from project investment.

160. MONE agrees that each school will be required to open a dedicated “Trust Account” with strict guidelines on open disclosure on all revenues and expenditures. MONE agrees to issue block grant technical guidelines prior to schools being eligible for project funding. Key school personnel will be trained in their application and use of the funds in order to ensure there are no reasons for any misunderstandings. Strict guidelines on anti-corruption and public disclosure linked directly with the management of the Trust Account.

161. MONE agrees that loan funds will not be used for any large-scale construction programs within recipient schools. Schools will be provided with guidance on how to manage the procurement of equipment and related instructional materials and all such procurement will be monitored for compliance.

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162. MONE agrees that the candidate NRS annual plans will be comprised of precise targets for each school pursuant to the SDIP needs-based mechanism and that these plans will be submitted to ADB as part of the project’s annual work program approval process. Revisions to the plan will be included in the project reports to ensure an accurate record of physical and financial targets. Schools will be permitted to adjust their plans once annually. Such adjustments must be registered with the PMU no later than the end of June in a given project year.

163. MONE agrees that annual allocations to NRS will be dependent on the district and MONE acceptance of an Annual Accountability Contract Report prepared by each NRS. Schools will not be eligible for project funds without having fulfilled all MIRS data entry requirements on key project indicators as part of creating baseline data (during the initial 6 months of the project and annually thereafter). Subsequent school tranche payments will be dependent on schools complying with detailed monthly and annual reporting requirements.

164. MONE agrees that overseas fellowships will be primarily for school staff rather than government officials and such placements will occur only after candidates have successfully completed all pre-departure requirements (particularly ICT and English competence).

165. MONE commits to complete the review of the internationally tendered consulting services (Packages A, B and C) and submit the terms of reference and owner’s estimate to ADB at least 60 days prior to loan commencement in order that ADB can recruit the consultants on behalf of MONE and facilitate their commencement within the first 2 months of loan implementation. MONE commits to holding a pre-bid meeting for interested parties and also to retain the right of non-objection to the selection outcome of ADB.

B. Conditions for Loan Negotiations 166. The Government will have formally communicated with ADB to confirm acceptance of the above special assurances. Such confirmation will include formal approval of the Project Proforma, consistent with the RRP and the Loan Agreement. Included in the proforma will be a list of the designated project schools and a summary statement on the extent to which each school has progressed in meeting the state of readiness requirements.

167. The Government will have formally agreed to consultant procurement conditions relevant to ADB assuming the lead role in approving three consultancies: Package A: Project Management, Coordination and Accountability; Package B: Education Planning, Management and Compliance; and Package C: School Quality Assurance. It is the intent of the project design that the first two of these consultant procurements will start within 3 months of loan commencement. Therefore, it will be incumbent upon the Government to advertise the opportunity in accordance with ADB Guidelines for the Procurement of Consultants to allow sufficient time for consultant proposals in response to the bid announcement to be submitted to ADB for approval, subject to Government non-objection to the final selection, to ensure that this timeline can be met.

C. Conditions for Loan Effectiveness 168. The Ministry of National Education will have established a Project Steering Committee (PSC) and a Central Work Management Unit (CWMU) prior to loan effectiveness. All officials and key staff assigned to the PMU will complete a staff training program in project management based on the project design. The Project Administration Memorandum cum Project Implementation Manual will be prepared and translated. The translated version will be verified by joint Ministry-ADB representation to ensure that there is full and mutual understanding among all parties as to the project design and conditions for implementation.

Appendix 1 35

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets/Indicators

Data Sources/ Report

Mechanisms

Assumptions and Risks

Impact Globally competitive labour force achieved

Outcome More SSE graduates of higher quality

At project completion, 1,300 students graduating from 160 Stream 1 NRS schools carry an international certification in at least one course

At project completion, 800 students graduating from 160 Stream 2 NRS schools carry an international certification in at least one course

Increased # of graduates from SMK NRS in project provinces obtain work in formal sector in Indonesia or abroad within 6 months of graduation

Increased # of graduates from SMK NRS in project provinces who start their own business in the formal or informal sector

Reports submitted by schools compliance mechanism See Note 1 Graduate tracer surveys Graduate tracer surveys

Assumptions • International

standard SSE graduates are able to access international standard post-secondary education (academic and technical/vocational institutions)

• Jobs are available for international standard graduates at salaries which reflect their relative productivity

• The economy needs modern sector jobs with wages and salaries that reflect the workers’ improved productivity.

Outputs 1. Improved student

learning outcomes

85% of Class 3 students in NRS who sit for international certification examinations pass

Percent of Class 3 students in Stream 1 who achieve the international mean on existing internationally recognized tests rises from baseline to 25% in Year 3 and 50% in Year 6

Percent of Class 3 students in Stream 2 who achieve the international mean on existing internationally

International certification examination

Project-administered testing regime at international standard administered in years 1, 3 (pre Mid-Term Review) and in 6th year of project See Note 2

Assumptions

No assumptions necessary, because if you have improved learning outcomes, you automatically have better graduates. There are no intervening variables.

Note 1: Compliance mechanism is one of 2 reporting mechanisms designed for the project. The other is audit.

Details can be found in the Compliance Monitoring Strategy (Appendix 14) and the Evaluation and Research (E&R) Strategy included in the parallel TA Grant Project (Appendix 8).

Note 2: Details of the project administered testing regime can be found in the Parallel TA Proposal, Appendix 8.

36 Appendix 1

recognized tests rises from baseline to 25% in Year 6

School survey in 3rd and 6th year of project

School management:

50% of teachers, School Committees and non-teaching staff at Stream 1 NRS report significant improvements in school management in 3rd year of project, rising to 90% at project completion

30% of teachers, School Committees and non-teaching staff at Stream 2 schools report significant improvements at in school management in 3rd year of project, rising to 75% at project completion

Facilities: 100% of Streams 1 and 2 schools achieve (original or agreed revision) annual targets in construction and/or rehabilitation of facilities and the procurement of equipment 100% of Stream 1 and 2 schools fully utilize the facilities and equipment as designed/intended, including adequate operation and maintenance as well as providing appropriate levels of consumables

Reports submitted by schools compliance mechanism

School survey in 3rd and 6th year of project

• Student learning outcomes are a function of school management, facilities and equipment and quality assurance.

This assumption will be tested by using a nested (or cluster) sampling design for the school survey.

•

2. Improved school management, non-instructional facilities and equipment, and quality assurance

Quality assurance:

100% of Stream 1 SMA schools have school-based QA programs at project completion (100 SMA)

100% of Stream 1 SMK schools achieve ISO certification by project completion (60 SMK)

Reports submitted by schools compliance mechanism

QA reports submitted by QA team/staff compliance mechanism

3. Increased equity and provision of special student support services

100% of NRS have published admission policies and annual evaluations demonstrate 100% adherence to guidelines

100% of designated project student support funds for Streams 1 and 2 committed by the 3rd year of the project and 100% for Stream 3

Reports submitted by schools and Provincial offices compliance mechanism

• proactive admissions policies will successfully identify and recruit qualified but poor, female, remote and inaccessible students who would otherwise not have access to

Appendix 1 37

committed by 4th project year.

% of SMA financial support students who are female in each province is within 5% range of % SMA female enrolment in SSE for the respective province

% of SMK financial support students who are female in SMK programs where female enrolment is < 25% of total enrolment, is twice as high as the % of female enrolment in those programs during baseline year (using national totals as the basis for calculation)

% of females in programs where female enrolment is < 25% of total enrolment increased by project completion

0% of students receiving financial assistance drop out from the project schools because guidance and tutorial services are inadequate

Reports submitted by schools and Provincial offices compliance mechanism

international standard SSE

• students from poverty families have less access to opportunities for international standard SSE than students from families which can afford to cover the costs of international standard SSE

• financial incentives will motivate females, remote, inaccessible, and indigenous ethnic to take advantage of opportunities for international standard SSE

• special services will increase the probability of success for females, remote, inaccessible, and indigenous ethnic students to complete international standard SSE

4. Foundation for SSE sub-sector policy and planning established

MONE training programs have incorporated findings into the MONE “Professional Teacher Certification Program”. Pre-service teacher education curriculum incorporates project’s school effectiveness findings

MONE has articulated the standards identified as suitable for schools at international standards with the National Standards Board (Badan Standard Nasional Pendidikan)

Training program materials and curriculum

Pre-service teacher education curriculum Interviews with lecturers in education (conducted as part of survey in 3rd and 6th year of project

Minutes of meetings between MONE and BSNP

Assumptions

• MONE will integrate other activities relative to strategic planning with the project initiative

Risks • project models,

recommendations and findings will remain as academic research and not be incorporated into the policy and implementation process

Activities and Milestones Inputs

1a. Strengthen standards, curriculum and student assessment

1.1 Assess and apply international standards

38 Appendix 1

Milestones: (i) a compendium of international standards; (ii) established international standards in selected areas in at least 160 project schools; (iii) established twinning with national and/or international organizations; (iv) agreements between NRS and MONE on procedures and scope of international agreements; (v) articulation between MONE and BASNAS on definitions and regulations for international standard schools; (vi) team of National Education Technical Advisors (NETA), formally certified by MONE as being competent to assist schools to improve teaching-learning processes, educational management at all levels (school to national) and outreach/community participation, consistent with international standards & practices; and (vii) education service providers, formally certified by MONE, as agencies to offer courses formally accredited by MONE and included in a Training Catalog of Accredited courses;

Technical Assistance (ADB); GOI counterpart funds.

1.2 Enhance curricula at the school level Milestones: (i) curriculum teams for 10 SMA subjects; 6 SMK subject areas; and a minimum of 4 SMK adaptive subjects – e.g. English, Physics, Mathematics, and ICT; (ii) an enriched national curriculum with new instructional materials and lesson plans in all NRS (in 10 SMA subjects and, in a total of 15 SMK courses/programs, including adaptive courses); (iii) overseas fellowships for 150 SMA and 96 SMK teachers; (iv) mechanisms to enable the curriculum teams to liaise and get feedback from project school teachers; (v) an in-school service to assist teachers to use new instructional materials; and, (vi) support for project schools to prepare materials for use in teacher association peer seminars (e.g. MGMP).

Technical Assistance (ADB); GOI counterpart funds.

1.3 Apply international testing standards for student certification Milestones: (i) selected courses improved to international certification standards in all 60 SMK NRS; and for English, Mathematics and ICT in at least 20 SMAs; (ii) sustainable arrangements for international examinations and certification for each NRS that pursues such an option (for specific courses (SMA) and not necessarily a complete program (SMK)); (iii) a minimum of 800 SMK students completed SSE graduate certification via an international certified exam; (iv) a minimum of 500 SMA students taken an international exam in at least one course; (v) 2,000 SMA and 1,000 SMK student graduates from NRS schools during the project; and, (vi) guidelines to help formulate policy on international standard curriculum.

Technical Assistance (ADB); GOI counterpart funds.

1b. Improve performance of teachers and instructional support personnel

1.4 Certify teachers and offer specialized courses to instructional support personnel Milestones: (i) development/delivery of program to certify SMK/SMA teachers to work in international standard programs with a total of 1,500 vocational teachers formally certified by MONE in the 6 vocational field specializations and, 300 project certified SMA teachers in each of 10 subjects (3,000 teachers formally certified by MONE); (ii) in 340 Stream 2 or 3 schools, a 40% achievement of the same target totals as NRS schools, depending on whether SMK (600) or SMA (1,200); (iii) overseas fellowships for 150 SMA teachers and advisors (225 person months); (iv) overseas fellowships for 60 SMK teachers (90 person months) and longer-term overseas fellowships for 120 SMK teachers (540 person months); (v) an additional 50 SMA fellowships available for teachers who are key trainers; and (vi) 6,250 person months of substitute or replacement teaching personnel.

Technical Assistance (ADB); GOI counterpart funds.

1.5 Provide professional development courses for instructional support staff Milestones: (i) development and delivery of 30 days of in-class instruction (3 modules) for 17 instructional support staff positions; (ii) 240 SMK workstation technicians/teachers and 150 SMK program assessors certified; (iii) 400 SMA/SMK science technicians/teachers trained; (ii) 160 SMA/SMK librarians trained; (iv) 160 SMA/SMK ICT laboratory technicians/teachers trained; (v) in 340 Stream 2 or 3 schools a 40% achievement of the NRS targets.

Technical Assistance (ADB); GOI counterpart funds.

1.6 Increase teacher access to reference materials and peer sharing opportunities Milestones: (i) fully equipped Teacher Resource Centers in at least 20 NRS with demonstrated use by school teachers and staff; and (ii) each NRS with a TRC hosts at

Technical Assistance (ADB); GOI counterpart funds.

Appendix 1 39

least 5 MGMP annual seminars for teacher discussion groups (between 3rd to 6th year).

1.7 Establish networks for development of teacher professional learning community Milestones: (i) individual NRSP associations established for three subject areas in the 3rd year; (ii) a Digital Clearinghouse established and supported by project hired support technicians (144 person months) who will work with the teacher discipline groups to host their specific NRSPA portal; (iii) during the project, at least two national forums for the 3 subject-specialist groups (60 persons per forum) to exchange ideas and materials; and (iv) publication of 30 reference papers on project interventions endorsed by each NRSPA, published via the Digital Clearinghouse, with demonstrated use.

Technical Assistance (ADB); GOI counterpart funds.

1c. Upgrade instructional materials, equipment and facilities

1.8 Procure instructional materials/textbooks in accordance with each school’s plan Milestones: Purchase and use of a sufficient numbers of textbooks, student references and teaching aids to enable schools to meet higher standards level national curriculum and, where undertaken, international curriculum.

Technical Assistance (ADB); GOI counterpart funds.

1.9 Procure teaching related equipment and software based on school plans Milestones: (i) SMK workstations, science and ICT laboratory equipment and supplies at international standards installed based on NRS plans; (iii) specialized equipment procured and installed in authorized education service providers in order to deliver certificate and non-certificate courses; (iii) staff trained in operation and maintenance; and (iv) software installed in vocational workstations, science, ICT labs, etc.

Technical Assistance (ADB); GOI counterpart funds.

1.10 Establish international standard teaching related facilities based on school plans Milestones: (i) new/reconstructed SMK workstations, science and ICT labs at internat-ional standards (language laboratories not eligible); (ii) new or reconstructed SMK NRS testing centers; (iii) teacher resource centers and student career planning centers; (iv) new/renovated libraries; (v) sanitation/utility facilities in classrooms at high standards.

Technical Assistance (ADB); GOI counterpart funds.

1d. Improve student readiness for post-SSE experiences

1.11 Establish student career planning, work experience/job readiness/job placement Milestones: (i) career planning, job readiness and placement services in each NRS that commits to fund staff positions (in addition to Contract Education Staff); (ii) 60 2-month fellowships for career center coordinators (120 person months); (iii) 320 guidance/job career counsellors trained in 3 ten-day courses (Counselling Skills Upgrading and Guidance Tutorials); (iv) 400 SSE graduates assisted to secure information on employment placement; and (v) at least 60 Career Planning Centers established and effectively used in SMK NRS.

Technical Assistance (ADB); GOI counterpart funds.

2a. Upgrade school management systems and procedures

2.1 Redesign general school management and administrative systems Milestones: (i) the installation and operation of the MIRS in 75% of NRS; (ii) the installation and operation of the AFIS management systems in 90% of NRS; (iii) at least 50% for both systems in Stream 2 schools; and (iv) 10 qualified MIRS and 10 qualified AFIS advisors to provide ongoing support.

Technical Assistance (ADB); GOI counterpart funds.

2.2 Redesign school personnel management support system (PMSS) Milestones: (i) the installation and operation of the PMSS in 90% of NRS; (ii) performance-based teacher and staff evaluation system designed and pilot tested in at least 90% of NRS; (iii) institutionalized career plan and staff development profiles for all staff in all NRS; and (iv) meaningful incentives program institutionalized in each NRS.

Technical Assistance (ADB); GOI counterpart funds.

2.3 Institutionalize school development planning system Milestones: (i) SDIPs produced, implemented and reformulated annually by each Stream 1 and 2 project school, including 3 persons from each of these NRS trained in SDIP verification and the preparation of school accountability contracts (600 SMA and

Technical Assistance (ADB); GOI

40 Appendix 1

240 SMK staff trained); (ii) evaluation mechanisms set up, including criteria and procedures, in Stream 1 and 2 project provinces including linkages with district and provincial government; (iii) 10 personnel in 18 provinces (from provincial and district government and LPMP) and 40 staff from P3Gs trained to implement and evaluate school development planning systems and the application of SBM; (iv) annual evaluation of each NRS SDIP; (v) project funds allocated annually according to approved SDIP and an independent compliance statement on the year’s plan implementation; (vi) by end of year 2, institutionalization of SDIP as the means to fund 160 Stream 2 schools; and, (vii) by year 3, introduction to the SDIP process with 180 Stream 3 schools as means to determine block grant allocations.

counterpart funds.

2b. Improve performance of school management and administrative personnel

2.4 Certify principals, vice principals and aspiring managers Milestones: (i) development of a NRS 250-day principal certification program whereby successful graduates receive MONE formal recognition; (ii) MONE formal recognition of 160 Stream 1 NRS principals and 320 other key staff, and 500 principals and staff from Stream 2 or 3 schools; and (iii) 300 person months of overseas fellowships for SMA principals and senior staff and 140 person months for SMK principals/senior staff (1.5 months each).

Technical Assistance (ADB); GOI counterpart funds.

2.5 Strengthen capacity of administrative staff

Milestones: (i) 320 Stream 1 NRS staff trained in School Management Information and Reporting System (MIRS); (ii) 320 Stream 1 NRS staff trained in School Accounting and Finance Information System (AFIS); (iii) 200 Stream 2 or 3 or non-NRS staff trained in MIRS; (iv) 200 Stream 2 or 3 or non-NRS staff trained in school finance; (v) 320 NRS administrators and 200 Stream 2 or 3 or non-NRS staff trained in school Personnel Management Support System (PMSS); (vi) 1,000 NRS administrators completed certified English and ICT courses.

Technical Assistance (ADB); GOI counterpart funds.

2c. Improve facilities, equipment and software

2.6 Establish quality school facilities/equipment/software based on school plan

Milestones: (i) adequate administrative office spaces and sufficient hardware/software to implement management systems; (ii) high standard hygiene conditions in all NRS facilities; and (iii) each NRS with facility and equipment schedule of required maintenance and replacement linked to the MIRS asset inventory system.

Technical Assistance (ADB); GOI counterpart funds.

2d. Increase community awareness and participation

2.7 Enable greater community awareness and participation in SSE

Milestones: (i) 160 NRS committees with a greater understanding of their role and responsibility as school co-managers; (ii) each committee instituting guidelines for school development and investment plans preparation and evaluation; school staff professional development program; school-community liaison practices and public image; and school revenue generation and minimizing school committee expenditures; and (iii) evidence of increased participation by business and industry representatives as either members of school committees or ad hoc participants in school affairs and school development; (iv) quarterly committee audit reports prepared and submitted to the PMU and the consultancy for compliance.

Technical Assistance (ADB); GOI counterpart funds.

2e. Establish sustainable funding initiatives

2.8 Enable schools to review and establish suitable income generating opportunities

Milestones: (i) functioning cost efficiency and sustainable income generation program in each Stream 1 NRS; (ii) an individual Stream 1 NRS strategy to increase school revenues and to leverage additional funds via local government officers and legislators.

Technical Assistance (ADB); GOI counterpart funds.

Appendix 1 41

2f. Institute school-based quality assurance programs

2.9 Enable school-based quality improvement programs

Milestones: (i) 4 persons from 5 LPMP, 36 persons from P3G, and 24 independent personnel trained as quality assurance advisors; (ii) quality assurances advisors trained by the project conduct 3 week on-site guidance programs involving teams of a minimum of 2 advisors to each of 10 pilot Stream 1 SMA NRS; (iii) quality assurance advisors from LPMP and P3G trained by the project provide a 30-day TOT within their own organizations in order to develop of 120 additional persons with QA expertise and eligible for further studies via external organization’s certification as Quality Assessor; (iv) an approved list of education service providers (agencies, private companies, NGOs, etc.) that have been formally recognized by MONE as capable of assisting to implement quality assurance programs; (v) each Stream 1 SMA NRS completed an in-school 5-day orientation to a school-based quality assurance program taught by project trained advisors; (vi) each Stream 1 SMA NRS visited at least twice each year commencing in year 3 to assist monitor and guide them with their quality assurance program; (vii) each Stream 1 SMA NRS with a quality assurance program in operation; and, (viii) each Stream 1 SMK NRS achieved ISO certification.

Technical Assistance (ADB); GOI counterpart funds.

3a. Develop Transparency, Accountability and Equity in Admissions

3.1 Develop and implement a transparent, accountable admissions program to ensure equity of access to higher quality schools.

Milestones: (i) all NRS will have published admissions policies and procedures within their first year of inclusion in the project (Streams 1 – 3); (ii) all admissions are compliant with the published standards; (iii) all NRS will have an established program to socialize their admissions policy and support services to a minimum of 10 JSE schools, with at least 5 of these schools being outside the school’s catchment area at the time of project commencement (baseline); (iv) NRS are able to demonstrate that their entrants meet the requisite social and geographical profiles, including specifically gender, remote and indigenous ethnic criteria; and (v) NRS able to identify qualified but poor candidates and allow a pre-determined minimum proportion of fee waivers on the grounds of financial inability (full/partial targets articulated in SDIPs and authorized by district and approved by MONE).

ADB ADF Special Funding; Technical Assistance (ADB); and GOI counterpart funds.

3b. Provide Targeted Student Support Managed by NRS

3.2 Establish & institutionalize financial, physical & academic student support services. Milestones: (i) financial support to economically and geographically disadvantaged students is made available to the agreed proportions of the student intake of each NRS in accordance with stated admissions policies but at a minimum of 25% of the normal annual intake for an SMA NRS or, for SMK NRS, in the specific program (total of 15,200 student years of full and 10,800 student years of partial fee waivers; (ii) all recipients are those from disadvantaged backgrounds (including gender, economic, social and geographical disadvantaged); (iii) NRS develop sustainable targeted student support programs; and, (iv) special tutorial support programs focused on enabling/maintaining academic readiness for selected students in each NRS with this service offered (commencing in the 2nd year) for a minimum of 10 students in a minimum of two program areas - English and ICT (total 20 students) with a total of 6,000 students being direct beneficiaries of the service.

ADB ADF Special Funding; Technical Assistance (ADB); and GOI counterpart funds.

3c. Provide special social services and facilities

3.3 Design and implement special social services and facilities Milestones: (i) dormitories and other purpose-built facilities as approved in individual school SDIPs, fully utilized by students; (ii) 320 Stream 1 NRS staff trained in a 2-week purpose designed training course; and (iii) guidance program offered in each Stream 1 NRS for minimum of 100 student contact hours per semester for each of years 3, 4, 5 and 6.

ADB ADF Special Funding; Technical Assistance (ADB); and GOI counterpart funds.

42 Appendix 1

3d. Enable School Committee Responsibility

3.4 Establish admissions self assessment process managed by school committees.

Milestones: (i) annual self evaluation report which will result in individual NRS accountability assessments which will be completed by MONE and the respective district which will also contribute to a broader project evaluation of the impact of the project in extending equity.

ADB ADF Special Funding; Technical Assistance (ADB); and GOI counterpart funds.

4a. Conduct research and evaluation to identify school effectiveness alternatives (ADB TA)

4.1 Evaluate project quality improvement interventions and cost-effective alternatives

Milestones: (i) a trained team of 80 project monitors and also trained data collectors from central, provincial and district government units; (ii) commencing at the end of year 3, an annual evaluation study on each NRS’s school improvement program with documented innovations, good practices and potential standards (compendium) for all aspects of school operations; (iii) report on project progress and identified models in school effectiveness with priority on teaching-learning and school management; (iv) two published reports on Effective Schools Models in SMA and also in SMK; and (vi) four study reports on (a) models of effective schools; (b) change management; (c) student tracer and (d) replicability of international standards.

ADB TA Grant (parallel funding to loan funding); GOI counterpart funds

4b. Conduct Senior Secondary Education sub-sector review (ADB TA)

4.2 Conduct sub-sector review of SSE

Milestones: Comprehensive report on senior secondary education that will identify a focused direction for the sub-sector, including providing government and the public with alternatives to be considered. Report will include the results of four surveys as well as address issues relative to: economic relevance; equity, quality of student achievement, management effectiveness, governance roles and responsibilities, costs and financing.

ADB TA Grant (parallel funding to loan funding); GOI counterpart funds

4c. Determine strategic directions and policy options (ADB TA)

4.3 Determine strategic directions, possible policy options and quality improvement models

Milestones: ((i) sub-sector review discussed with central MONE, national Legislators (from the Commission responsible for education), District and Provincial Education Service, universities the business community, local and international NGOs active in SSE and international donors in a series of workshops; (ii) findings on cost-effective alternatives disseminated in 7 regional seminars for District and Provincial Legislators (from the Commission responsible for education budgets) plus District and Provincial Government (Planning Board, Budget Bureau and Education Service); (iii) models for school effectiveness disseminated in 7 regional seminars for regional educators and planners (iv) discussion paper and proceedings produced as a foundation for extensive dialog on providing more broadly accessible senior secondary education at international standards and on policy options; (v) 10 regional forums, 8 provincial forums, 1 national forum, and one national conference focused on SSE development, policy and strategy; (vi) recommendations on intergovernmental operating procedures and education funding; (vii) suggested options on school financing practices, school quality improvement alternatives, curriculum, equity and access priorities; and, (vii) guidelines for consideration in the development and implementation of an overall long-term strategic plan.

ADB TA Grant (parallel funding to loan funding); GOI counterpart funds

Appendix 2 43

PROBLEM ANALYSIS

A. Introduction 1. The project team identified with representatives from the Directorate of Technical and Vocational Education and the Directorate of General Secondary Education the core problem faced relative their mission of improved senior secondary education. This process occurred over a long period given many differing assumptions on the basic issues faced. Eventually, the core problem was identified as the need for improved accessibility to international standard SSE for the public sector. International standard SSE is currently provided by a limited number of private schools but the fees paid by parents are very high so they are accessible only to a very limited number of students – therefore also producing a very limited number of graduates. Furthermore these schools tend to be part of an international support network, by passing the national education system.

B. Causes 2. It was determined that there are three direct causes of this problem and a myriad of reasons (causes) for their existence. The three direct causes outlined as (i), (ii) and (iii) on the problem tree diagram following are:

(i) the quality of formal education;

(ii) the characteristics of graduates; and

(iii) the extent of entrepreneurship.

3. These causes are complex and highly inter-related. Therefore, graphic representation must not follow a horizontal logic. Rather; there is a need to cluster these causes as outlined in the following problem tree. Integral to the causes, however, is the dynamics of an effective school and the basis of the need for secondary school quality improvement programs.

4. Quality of Formal Education: The primary causes of the quality of formal education is the extent of transition from junior secondary education, the quality of senior secondary education, and the quality of tertiary education.

5. Characteristics of Graduates: Graduates lack adequate motivation and discipline. They also lack inter-personal relations, capacity in English, and an innate ability to solve problems and apply fundamental decision-making processes. Many of them do not demonstrate a willingness to learn or the capacity to be taught (teachability).

6. Entrepreneurship: Graduates need to enter a labor market where the business and industry climate and productivity is competitive with local, regional, national and international environments.

C. Effects 7. The direct effect of the need for accessible international standard SSE is that the Indonesian labour force is not globally competitive. There are two first-level indirect effects as outlined in the diagram as (a) the domestic market and (b) the international labor market.

8. The first level of indirect effect is the product of creating professionals and managers; skilled workers; and self-employed individuals. Each of these will have key roles in small and medium sized enterprises.

9. The second level of indirect effect is related to productivity. These include the profits-wages and incomes-receipts. A third level relates to poverty alleviation and increased investment as outlined in their horizontal positioning in the problem tree diagram.

44 Appendix 2

10. The final level is the resulting impact on growth and development from a social, political and particularly an economic context. Following is the problem analysis process presented in diagrammatical form.

11. Subsequent to the Problem Analysis Diagram is a synopsis of the macro-economic context within which the project is designed.

PROBLEM ANALYSIS

(i) Quality of formal education

(ii) Characteristics: motivation, discipline,

inter-personal relations, problem solving/decision making skills, willingness

to learn, and English

(iii) Entrepreneurship

School’s institutional culture Quality of

tertiary education

Quality of senior secondary education

Junior secondary transition education

School’s human resources School’s financial resources Teaching-learning process Academic support facilities School management Student Services

(a) Domestic labor market (b) International labor market

Improved productivity Higher profits Higher wages

Skilled workers

Professionals and managers

Growth and development

Higher incomes Higher foreign

exchange receipts

Increased investment Poverty alleviation

Professionals and Managers

Self-employed SME

Skilled workers

Indonesia’s labour force is not internationally competitive

Core Problem: Need for accessible international standard SSE in the national education system

Appendix 3 45

SUB-SECTOR ANALYSIS

A. Overview 1. Indonesian senior secondary education (SSE) stands at a crossroads where, depending on directions chosen, the future can be qualitatively different from the past.1 The educational system which was successful in producing the labor force required for the first stages of industrialization, 1984 – 1994, has been far less successful in supporting the high quality growth required for the future. Parents have recognized this and are searching for higher quality alternatives to the regular senior secondary education for their children by entering their children in National Plus schools or international schools. However these alternatives are open to a limited few members of society, primarily affluent families who live in major metropolitan centers.

2. The National Development Planning Agency (Bappenas) has drawn up a new long-term (25-year) national development plan for the period 2005 to 2025 which states “In the next 20 years, Indonesia will reorganize its institutions and, at the same time, build Indonesia to catch up with other nations.” Global competitiveness is at the heart of the strategy. The Ministry of National Education Strategic Plan2 (2004 – 2009) identifies human resources as the key to achieving the national mission. The MONE Plan also states that achieving global competitiveness requires international standard human resources who are capable of operating in a knowledge-based economy.

3. The strategy for achieving this mission assigns distinct tasks to the different levels of education. Improving access and equity in access is the major task of the basic education sector, composed of primary and JSE, assisted by early childhood education. In 2005, these activities receive 45.29% of the total central government education budget.3 The main policy for achieving improved and more equitable access is compulsory universal 9-year basic education, which receives 43.08% of the total central education budget.

4. At the SSE level, government policy on increased access is focused primarily on two initiatives: (i) increasing access for those candidate students who are unable to participate in the regular SSE program, through such initiatives as scholarships, Open SSE and a non-formal, self-study SSE equivalency program (Paket C); and (ii) increasing access to vocational SSE through new programs linked more closely to the demands of the local labor market. The Plan specifically states that increasing the supply side of SSE is primarily the responsibility of the private sector. Government policy initiatives for SSE are focused on quality, relevance and competitiveness. One of the Plan’s measures for achieving this is the number of schools at international standards.

a. Structure of the Education Sector

5. The Indonesian educational system is actually a complex network of interlocking sub-systems. Law 20 of 2003 concerning the National Education System mandates a unified system but historical development and current politics makes this difficult. The system consists of 5 levels: early childhood (ages 5 to 6 years), primary (ages 7 to 12), junior secondary (ages 13 to 15), senior secondary (ages 16 to 18), tertiary (3 and 4 year undergraduate programs; post graduate programs at the Masters and Doctoral levels). All these programs are offered by both 1 The PPTA produced a sub-sector overview which is published as an annex to the report (Annex A). It provides

considerable support data (and acknowledgements) and a broader perspective on the sub-sector. 2 Officially titled “Strategic Plan for National Education”, November 2005. Also referred to as Renstra Depdiknas. 3 This percentage is calculated on the “education function” budget, see para 13 below. Data from 2005 budget (2nd

revision). It includes 3 programs: early childhood education, basic education and non-formal education.

46 Appendix 3

government and private schools under both the Ministry of National Education (MONE) and Ministry of Religious Affairs (MORA).

6. The net enrolment ratio for primary is 99% and for JSE is 78%. The really crucial issue in access and enrolment is the low rate of primary-JSE transition: only about 71% of primary graduates transition to JSE. Non-transition from JSE-SSE is smaller, at 17%, that is, students who survive to JSE level tend to continue through SSE for an NER of 51%.

7. The MONE SSE sub-sector itself is also divided into 2 streams: general SSE (SMA) and vocational SSE (SMK). SMA students account for 60% of total SSE enrolment. The SMA curriculum is divided into 3 programs: natural science, social science and languages. The natural science program accounts for 37% of enrolment; social science for 59%; and languages for the remaining 4%. A single SMA school may offer all three programs, charging the same tuition and fees for all students. The SMK curriculum is divided into 6 program groups: agriculture and forestry, technology and industry, business and management, community welfare (previously household skills), tourism and art and handicraft. A single SMK school may offer a variety of programs. Technology and industry together with business and management account for 89% of total enrolment, with tourism at 5%, agriculture and forestry 3%, community welfare and art and handicraft at 1.5% each. Private SMK have substantially higher enrolments in technology and industry programs.

b. Agency Roles and Responsibilities 8. The organizational structure of MONE is headed by the Minister, who is assisted by four Assistant Ministers (Staf Ahli) who provide specialist staffing and the Inspector General who is responsible for legal and financial compliance. In addition to the central MONE office, the country is divided into 7 geographical regions, each with its own education inspectorate office. The Ministry also has 12 centers for research and development in various areas. The Secretary General’s office provides staff services to the entire Ministry, such as planning, personnel, finance, logistics and procurement. There are two line officers concerned directly with education, and the assignments are divided based on the level of education: Director General for basic (primary + JSE) and secondary (SSE) education; and Director General for higher (tertiary) education. There is also a separate Director General for Sports and a Director General for Non-Formal Education. In May 2005 a new Directorate General was introduced for Teaching and School Staff Capacity Building (Peningkatan Mutu Pendidik dan Tenaga Kependidikan).

9. Laws on regional autonomy, passed in 1999 and implemented in January 2001, created a situation in which lines of authority were not entirely clear. Article 7 of the law stated that authority was handed over to the Districts for all fields of governance except for 6 sectors and 8 activities, which were reserved to the central government. Education was not one of the 6 reserved sectors and therefore was handed over to the Districts. However the inclusion of policy, planning and standards in the 8 reserved activities, buttressed by the National Education Law of 2003, provides the central government with a key role in the national education system. In 2003, the original regional autonomy law was replaced by a new regional autonomy law, Law 32/2004, which was intended to clarify some issues raised by the 1999 law. In the new law, there are two types of regional government functions: obligatory and voluntary.

10. Education is one of the obligatory functions, which means that regional governments are required to provide and manage educational services. Implementation of obligatory functions, including provision of educational services, is subject to the minimum service standards (MSS) to be set by technical departments4, in this case MONE. In addition to MSS, education service

4 Ministerial decision letter 129A/U/2004.

Appendix 3 47

providers are also subject to National Education Standards (NES),5 which are based on Law 20/2003. General NES guidelines have been published but more detailed regulations are under preparation.

c. Financing 11. Since the implementation of regional autonomy and financial decentralization in the 2001 fiscal year, central government expenditures are divided into two categories: (i) expenditures to finance central government activities flowing through ministry budgets; and (ii) expenditures to support regional financial balance. Expenditures for regional financial balance are about one-third of total central government expenditures with the remaining two-thirds channeled through central government agencies, including ministries.

12. The government budgeting system, at both the central and regional levels, has been fundamentally changed by a series of laws passed in 2003. The laws mandate a unified budgeting system which is different from the former division of the budget into two parts: routine activities and development activities. Routine expenditures were reported by department (sector) and consisted of personnel costs, consumable goods and services and other operating costs. Development expenditures in theory represented capital investment but, in fact, contained large components for personnel and consumables.

13. In the new budget system, the allocations to finance central ministry budgets are arranged in three separate presentations, based on international best practice for government budgets: (i) expenditure by type of spending, divided into 8 line items: personnel, consumable goods and services, capital goods, debt repayment, subsidies, grants, social assistance and other; (ii) expenditure by organization, divided into ministries and non-departmental agencies; and (iii) expenditure by function, divided into 11 functions: general services, defense, security, economy, environment, housing and public facilities, health, tourism and culture, religion, education, social protection.

14. A key change in the budgeting process is the attempt to tie budgets (and therefore actual activities) more closely into the policy process. In the past, routine budgets were based essentially on the civil service and its needs and, therefore, were calculated as some additional increment on the previous year’s budget. Development budgets were based on projects, which were separate from the routine activities and often only loosely related to policy priorities because the project formation process involved both donor priorities and GOI policy. Under the new laws, the basis for the budget is the government’s Annual Work Plan, which is submitted to the legislature for approval.6

15. Education Law 20/2003 does not contribute substantially to the discussion of educational finance, containing mostly generalities. The intent is that the specific provision of the general specifications will be dealt with in Government Regulations (PP). MONE has a draft regulation on educational finance which is currently being reviewed. However, the Law makes a specific provision that financial resources provided by the central Government to the regions and financial resources provided by the Districts to schools must be in the form of block grants.

16. From the allocation managed directly by the central government, 18% of total spending on central government agencies is allocated to MONE. In addition, 5% of total central spending is allocated to MORA. When the MONE and MORA allocations are combined, the total

5 PP19/2005 6 The GOI workplan is derived from department annual workplan submissions. It results in indicative allocations that

departments use pending legislative confirmation. The outcome is an allocation to each department which is subject to internal negotiations to determine how funds are used.

48 Appendix 3

allocation to formal education programs is 20% of the total central budget. This percentage is much lower, however, when the regional budget allocations are included. There are also considerable regional variations depending on district legislative commitments to education.

17. Overall the total unit cost of private schools is lower than Government schools, but the cost burden on parents is higher because the parents are carrying a 3% - 4% larger share of the total cost. Vocational SSE is 25% more expensive in government schools and 11% more expensive in private schools than is general SSE and the cost burden for parents of vocational SSE is 17% more expensive in government schools and 13% more expensive in private schools than general SSE. 18. The cost breakdown of government contributions (net of operational subsidies for government schools) shows that District Governments are providing similar amounts of funding to SMA and SMK, Rp. 125,000/student/year. However, Provincial Governments are providing almost three times as much to SMK as SMA (Rp. 658,000/student/year vs. Rp. 261,000/student/year) and the central Government is also providing almost twice as much to SMK as to SMA (Rp. 953,000/student/year vs. Rp. 503,000/student/year). The government operational subsidies to government SMA schools are Rp. 3.6 million/ student/year and for government SMK schools are Rp. 4.7 million/student/year.

19. Government SMA are 11% more expensive than private SMA and government SMK are marginally (3%) more expensive than private SMK. For SMA, only school fees are more expensive in private schools; all other items are less expensive. For SMK, school fees are also more expensive in private schools but so are books and school supplies. As noted, SMK is more expensive overall than SMA, with the differences being primarily in school fees. Parents of SMA students spend substantially more on commercial tutoring for their children than do parents of SMK students and parents of students in government SMA pay more for books, school supplies and school uniforms than do parents of students in government SMK.

B. Relevance 20. The Indonesian industrial structure is concentrated in low technology and assembly-type industries. In fact, during the decade before the economic crisis, when foreign investment was highest, the share of value added in exports from low technology products actually increased from 44% to 48% while the share of value added from medium technology products fell from 38% to 34%. The Indonesian labor force currently is not internationally competitive. The most important impact of the labor force is seen in Indonesia’s current growth situation. The Indonesian economy is growing at a rate of between 4% and 5%/year and this growth is being driven primarily by domestic consumption spending. However the economic growth is not creating new jobs -- in fact during the last year, Indonesia lost almost 900,000 jobs, more than half of those in the industrial sector alone.7

21. The basis of the demand for SSE-level education is that it serves as preparation for tertiary-level education and employment. Secondary data show that approximately one-third of SSE graduates move directly into the labor force, while the remaining two-thirds go on to tertiary-level education. SSE level education provides a wage premium over JSE level which ranges from Rp. 150,000 – Rp. 200,000/month, about 20% - 35% of the JSE wage. SMK graduates receive the most significant wage premia over SMA graduates in mining, manufacturing and transport, sectors in which their specialized skills would make them more productive and more attractive to employers. At the microeconomic level, there is evidence that the average level of education in a firm has a positive effect on the productivity of any worker in

7 A detailed description of the macro-economic context for the education sector is in the TA Sector Review.

Appendix 3 49

the firm. Lack of an internationally competitive labor force reduces the potential for capturing these externalities in productivity at the level of individual firms.

C. Equity 22. Poverty. SSE is not a direct anti-poverty strategy because most children from low income families drop out long before they reach SSE. Statistical analysis suggests that enrolment is driven by income and constrained by poverty. If this is the case then tightly targeted financial assistance for poverty families could improve transition and, through this mechanism, greater access and enrolment.

23. Gender. Gender discrepancies do not appear to be an overall problem in Indonesian education although there are wide variations by individual school and by program. Females account for 49% of primary school enrolment, 44% of JSE enrolment, 47% of SSE enrolment and 44% of tertiary enrolment. Within SSE, the ratio of females in general secondary is 49% and 43% in vocational secondary. The PPTA conducted a survey and found a range of respondent schools had gender ratios within the 40% - 60% range. However, in SMK, there are essentially single-gender schools, overwhelmingly male or overwhelmingly female. All of the schools with large female majorities were schools offering programs in tourism and/or ICT. None of the schools offering construction, machinery or automotive had less than 90% male enrolment and most were on the order of 95% - 98% male enrolment. This suggests that gender is an issue at the program level in vocational SSE.

D. Effectiveness 24. Although Indonesia has been successful in providing adequate access to education, the same cannot be said for quality. The Organization for Economic Cooperation and Development (OECD) surveyed reading, mathematics and science of 15-year-olds (class 1 of SSE in Indonesia) in 2003. Indonesian students ranked 39th out of 41 countries in reading, with an average score equal to 74% of the OECD average but only two-thirds of the highest-scoring country. In mathematics, Indonesian students ranked 39th out of 41 countries participating in the examination, with an average score equal to 73% of the OECD average and two-thirds of the highest-scoring country. In science, Indonesian students ranked 38th out of 41 countries participating in the examination, with an average score equal to 79% of the OECD average and 71% of the highest-scoring country. The pattern of distribution for these scores suggests a “bunching up” of scores in the middle ranges of the distribution: Indonesia is one of the lowest ranked countries, but the actual Indonesian score is only 10 – 20% lower than the mean for all countries, combined with a “stretching out” of scores above the mean. This implies that Indonesia is caught at the lower end of a group of countries with roughly similar quality of education. Marginal improvements in Indonesian education will only push Indonesia up from the lower end into the middle of the pack, but will not provide a competitive edge. Creating a globally competitive labor force will require that Indonesia “leap over” the pack by providing SSE graduates at international standard.

25. Repetition rates for SSE are very low, less than 1% of enrolment, and decline as the students pass up to higher classes for both general and vocational SSE. The drop-out rate for general SSE is 1.75% of enrolment over the 3 years of the program. For vocational SSE, the drop-out rate is somewhat higher at 4.47%. This combination of repetition and drop-out indicates that the school system must finance the costs of 100.6 students in general SSE and 101.5 students in vocational SSE in order to produce 100 graduates.

50 Appendix 3

E. Summary 26. The content of this Appendix is a synopsis of the PPTA report, Sub-Sector Review, produced as part of the review of the sub-sector (2005). Further detail is also included in other reports produced by the PPTA which include Gender Assessment, Poverty and Social Assessment, Public Expenditure Review, Education Management and Finance, and Sub-Sector Overview. Each of these reports was produced in October 2004 and, although some of the data is dated, they provide valuable insight into senior secondary education. There is a need, however, for a more thorough and comprehensive sub-sector analysis and both Government and the Asian Development Bank should review the need for such study as part of further discussions relative to the proposed Second Senior Secondary Education Project.

Appendix 4 51

INDONESIAN EDUCATION STRUCTURE

1. The Indonesian educational system is actually a complex network of interlocking sub-systems. Law 20 of 2003 concerning the National Education System mandates a unified system but historical development and current politics makes this difficult. The first formal education in Indonesia was conducted by religious organizations: the Hinduized kingdoms required priests and administrators. When Moslem traders took up permanent residence in Indonesian cities and began making converts, they established Koranic schools, which in turn produced local missionaries. These schools eventually became the pesantrens (Islamic boarding schools).

2. The Dutch colonial government established Dutch standard schools, which were later opened to children of local nobility. The colonial government also permitted European religious organizations and Chinese cultural foundations to establish schools. Meanwhile, Indonesian Moslems returning from the Middle East brought back the ideas of modern Islamic schools, which taught secular subjects in addition to religious subjects. These schools eventually became the madrasah (schools offering a mixed religious and secular curriculum in a Muslim environment). During the late colonial period, Indonesians nationalists began establishing “people’s schools” for non-noble children. At the time of independence, the Dutch colonial schools became government schools under the authority of the Ministry of Education, while the schools established by European religious organizations and Chinese cultural foundations became private schools, also under the authority of the Ministry of Education. Some of the people’s schools chose to become government schools under the authority of the Ministry of Education (MONE), while others chose to retain their own foundations and become private schools under the Ministry of Education. Meanwhile the madrasah schools came under the authority of the Ministry of Religious Affairs (MORA). The Government eventually established government madrasah and regulations exist which permit private schools to apply to become government schools. Pesantrens remained independent.

3. The Indonesian education system consists of 5 levels: early childhood (2 years, ages 4 to 5 years), primary (6 years, ages 6 to 12), junior secondary (3 years, ages 13 to 15), senior secondary (3 years, ages 16 to 18), tertiary (3 and 4 year programs at the undergraduate level; post graduate programs at the Masters and Doctoral levels). All these programs are offered by both government and private schools under both the Ministry of National Education (MONE) and Ministry of Religion (MORA).

4. Figure A4-1 and Table A4-1 show the structure of the education system and enrolment in each part of the system. A total of 68% of registered pesantrens offer some type of formal education in addition to religious studies, and many have MONE or MORA schools within the pesantren campus. The pesantren students study in these schools in the morning, while attending traditional Muslim studies in the afternoon. The government issues graduation certificates to students from all four types of schools and pesantrens with a formal education program based on passing a national exit examination. This system permits students to move freely among the four types of schools

5. As students move to higher levels of education, MORA schools become less important while MONE private schools become much more important. At the primary level, MONE schools account for 90% of total students, with 93% of these in government schools. At the JSE level, MONE schools take 94% of students, with 73% of these in government schools. At the SSE level, even fewer choose MORA, with MONE accounting for 98% of students, and 46% of these in government schools. MORA schools are overwhelmingly private at all levels: 87% at primary; 75% at JSE and 66% at SSE. At the tertiary level, the private sector has expanded dramatically

52 Appendix 4

in recent years in response to increasing demand which has not been filled by expansion of government universities.

Figure A4-1: Structure of Indonesian Education System, 2003/2004

Structure of Indonesian Education System

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Kindergarten Primary JSE SSE Tertiary

Tota

l enr

olm

ent

MORA PrivateMORA GovernmentMONE PrivateMONE Government

Source: Summary of Indonesian School Statistics, 2003/2004, MONE; Statistics of Religious Education 2003/2004, MORA. Table A4-1: Structure of Indonesian Education System and Enrolment 2003/2004

Ministry of National Education

Ministry of Religious Affairs

Government Private Government Private Kindergarten 25,342 1,960,407

Primary 24,083,746 1,892,539 309,889 2,814,264

JSE 5,561,706 1,961,612 516,788 1,564,788

SSE 2,495,142 2,904,405 289,912 436,981

Tertiary 879,605 2,917,112 n.a. n.a. Source: Summary of Indonesian School Statistics, 2003/2004, MONE; Statistics of Religious Education 2003/2004, MORA.

6. The gross enrolment ratio for primary school is 114%, with about half of the 14% surplus coming from under-aged children who are already enrolled in primary school and the remainder from over-aged children who have not yet graduated. The net enrolment ratio for primary is 99% and for JSE is 78%. The really crucial issue in enrolment is the low rate of primary-JSE transition: only about 71% of primary graduates transition to JSE. Non-transition from JSE-SSE is smaller, at 17%, that is, students who survive to JSE level tend to continue through SSE for

Appendix 4 53

an NER of 51%. The Government’s highest priority for basic education is now the 9-Year Compulsory Basic Education campaign, which is intended to raise NER for JSE to 100%.

7. The MONE SSE sub-sector itself is also divided into 2 streams: general SSE (SMA) and vocational SSE (SMK).1 SMA students account for 60% of total SSE enrolment. The SMA curriculum is divided into 3 programs: natural science, social science and languages. In theory, students take a common first year, then choose their programs for years 2 and 3. In practice, students are admitted directly into a program. the natural science program accounts for 37% of enrolment; social science for 59%; and languages for the remaining 4%. Private SSE tend to have somewhat higher enrolments in social science programs and substantially lower enrolments in language programs than government SSE. A single SMA school may offer all three programs, charging the same tuition and fees for all students. The SMK curriculum is divided into 6 program groups: agriculture and forestry, technology and industry, business and management, community welfare (previously household skills), tourism and art and handicraft. A single SMK school may offer a variety of programs. Technology and industry together with business and management account for 89% of total enrolment, with tourism at 5%, agriculture and forestry 3%, community welfare and art and handicraft at 1.5% each. Private SMK have substantially higher enrolments in technology and industry programs than SMA and marginally higher enrolments in business and management programs. See Table A4-2. Note that the enrolments for general SSE programs represent only Classes 2 and 3 since students do not choose a program specialization until after Class 1. Enrolments for vocational SSE programs are total enrolment because students enroll in their program of choice commencing in Class 1 (Table A4-1 provides overall enrolment data).

Table A4-2: Enrolment in SSE Programs, 2003/2004

General SSE Government Private Total Natural science 229,794 147,907 377,701 Social science 322,849 272,409 595,258 Language 27,075 9,074 36,149

Total 579,718 429,390 1,009,108 Vocational SSE Government Private Total Agriculture and forestry 26,968 28,768 55,736 Technology and Industry 230,667 731,967 962,634 Business and management 252,969 708,448 961,417 Community welfare 15,002 13,338 28,340 Tourism 60,195 44,580 104,775 Art and handicraft 22,640 6,012 28,652

Total 608,441 1,533,113 2,141,554 Source: Summary of Indonesian School Statistics, 2003/2004, MONE 8. Following as Figure A4-2 is the typical standard pyramid chart that is also meant to portray the Indonesian Education System. This is as a comparison to Figure A4-1.

1 There are reports of MORA SSE schools (Madrasah Aliyah) which offer vocational programs, but no data is

available.

54 Appendix 4

FIGURE A4-2: STRUCTURE OF THE INDONESIAN EDUCATION SYSTEM

Islamic Education

Academic Education

Professional Education

Islamic Doctorate Program

(S3)

Doctorate Program

(S3)

Second Professional

Program (SP II)

Official School

Age

Islamic Master

Program (S2)

Master Program

(S2)

First Professional

Program (SP I)

22

21

20

19

Higher Education

Islamic Graduate Degree Program

(S1)

Graduate Degree Program

(S1)

Diploma 4 Program

(D4)

Diploma 3 Pro-gram (D3)

Diploma 2 Pro-gram (D2)

Dipl. 1 (D1)

18

17

16

Secondary Education

Islamic General Senior

Secondary School

General Senior Secondary School

Vocational Senior Secondary School

15

14

13

Islamic Junior Secondary

School Junior Secondary School

12

11

10

9

8

7

Basic Education

Islamic Primary School Primary School

6

5

4

Pre-school

Education

Islamic Kindergarten Kindergarten

Appendix 5 55

LESSONS LEARNED FROM INDONESIAN EDUCATION PROJECTS

A. Introduction The lessons learned are drawn from the following primary sources:

• Technical Education Development Project, ADB Loan 1100 • Vocational and Technical Education Project, ADB Loan 1319 • Indonesia-German Institute Alliance for Training, GTZ, 2001 - Present • Indonesia Australia Partnership for Skills Development (IAPSD), 1997-2005 • Senior Secondary Education Project, ADB Loan 1360 • Development of Madrasah Aliyahs, ADB Loan 1519 • First Junior Secondary Education Project, ADB Loan 1194 • Second Junior Secondary Education Project, ADB Loan 1573/74 • Decentralized Basic Education, Bali/Lombok, ADB Loan 1863

Also studies by the Central Implementation Monitoring Unit Project (CIMU) provided input:

• Scholarships and Grants Program (SGP) • School Improvement Grant Program (SIGP) • Capacity Building for Decentralized Social Service Delivery Project (DSSD).

B. Project Design

1. Lesson: Previous projects have focused on maximizing the number of schools that receive a benefit from project interventions. The problem created is that each school gets minimal inputs that have limited impact.

Design Approach: The number of schools has been limited to ensure that the investment in the school is sufficient to enable a whole school development process with a greater numbers of school personnel involved and a critical mass for sustainable change is created.

Design Approach: A digital clearinghouse will be provided so that materials, innovations, etc. that result from the project can be posted on a web page that can be readily accessed by any teacher. In addition, candidate national reference schools as the main beneficiary schools are required to share the experience with others through the nurturing of local teacher working groups (MGMP) as well as the establishment of professional associations (such associations are supported by the project in Mathematics, English and Physics).

2. Lesson: Previous projects have prescribed a limited number of focus areas for project interventions. If the implementation program is too prescriptive of standard activities, some interventions may not be relevant to a particular school at a particular time.

Design Approach: Schools have been encouraged to develop their own interventions to create a unique menu suited to their situation and suited to the most appropriate timing for each individual school. This has been accomplished by the introduction of school development and investment plans (SDIPs) which are annual action plans for each school that are a needs-based self-assessment and school planning process. Also schools have some discretionary funds to respond to their own stated priorities rather than having access only to options determined by the project.

56 Appendix 5

3. Lesson: Capacity building project design documents indicate that the project provides for flexibility. In reality, however, the implementation support and the reporting requirements tend to push schools to follow set patterns established in the annual plans. This means schools are required to participate in accordance with centrally determined schedules. In addition, they are required to demonstrate change with too much haste rather than gradually developing true sustainable capacity.

Design Approach: Schools will proceed at their own pace. Funds are allocated based on a detailed assessment of the actual changes underway rather than forcing project content on to all schools according to a standard pace and format.

4. Lesson: School reform is a process that involves all aspects of the school and all individuals within the school and for many in the community it serves. Such change processes are complex, do not happen quickly and require continuous support and guidance to ensure the changes are effective and sustainable.

Design Approach: Project school reform programs are unique given the focus on their setting priorities in their SDIPs. The project supports a school development process that includes broad school and community participation. It recognizes that each school requires a unique time schedule to develop a true sense of ownership and commitment. The design also provides on-site guidance and support to the SDIP process, particularly in the annual review and accountability procedure whereby each school must account for the extent to which plans have been achieved.

5. Lesson: Most projects include a school development plan. Seldom, however, are these plans in sufficient detail to reflect the development requirements of all aspects of the school. Also, seldom is there any accountability process and feedback mechanism to the school community and the broader community at large, including district officials.

Design Approach: The process of school development planning requires a highly participatory approach involving broad representation from administrative staff, teachers and the school committee. SMK schools are required to involve representation from business and industry. An integral aspect of the process is the requirement that schools prepare an annual “accountability contract” where the annual targets for school plans must be stated. At year’s end, the school is required to document the extent to which targets have been achieved and also provide explanations as to the reasons for discrepancies between plan and action.

6. Lesson: Engaging in school reform programs requires continuity of school personnel and a whole school commitment to high standards. This requires very capable leadership within the school and continuity of staff, particularly from the principal and senior administrators, but also from key teachers and from the school’s committee.

Design Approach: A loan covenant requires district personnel to commit to retaining principals and teachers in project schools in order that a cadre of qualified personnel is available for ongoing school development. The design includes the introduction of a school leadership certificate of competence program to provide senior school staff and key teachers with the skills required to enable the kinds of school change necessary. Also, training is also provided to school committee members to enable them to better understand their role and function in a dynamic national reference school environment.

Appendix 5 57

7. Lesson: Many projects include complete re-writing of course curriculum, which is costly and time consuming.

Design Approach: The project emphases on twinning with international organizations and linking with in-Indonesia international or national plus schools. The intention is to provide national reference schools with access to existing curriculum and instructional materials already available and accessible to project schools. In this way, the substantive content for many courses can be accessed via existing materials available from these sources.

8. Lesson: Many projects have been designed without sufficient reference to policy.

Design Approach: Output 4, Foundation for SSE Policy and Strategy and the inclusion of a parallel TA focused on sub-sector analysis provides an important contribution to MONE and the broader community to review policy and strategy options. Project implementation includes regional and national forums to review a working paper prepared by the project on direction and models for effective SSE.

9. Lesson: Current perceptions of both parents and students tend to devalue an SMK education as provided and consequently favor SMA schools.

Design Approach: Training modules for School Committee members and also for principals include an emphasis on school image and the need to change community attitudes to SMK education by providing examples of successful transition from technical and vocational programs to good jobs and also to higher education options.

10. Lesson: The participation of women in vocational and technical programs is low.

Design Approach: Includes targeted scholarships aimed at encouraging and enabling women to enter non-traditional trades and also into science and technology programs.

C. Project Management

11. Lesson: Current structural arrangements tend to constrain coordination and articulation between the key directorates. This scenario will be a greater challenge with the introduction of the new directorate general responsible for education staff development (former directorate of teacher development) which will assume full control of the key service providers (e.g. P3G and LPMP).

Design Approach: The project steering committee includes representation from the Directorate General of Primary and Secondary and the new Directorate General of Education Staff Development. The PMU includes a coordinating committee comprised of two deputy project managers and the overall project manager. The deputies represent the directorates responsible for SMK and also SMA schools.

12. Lesson: Projects that are managed by the Center tend to be dictated by central officials without sufficient ownership at the district and provincial levels. Given that ongoing funding for education is very dependent on local resources, it is necessary to strategize close coordination with non-center based personnel.

Design Approach: The project’s annual planning and review process will be conducted jointly by central, district and provincial authorities through annual coordination meetings.1 Ongoing involvement that is facilitated by the project, will allow these officials to make explicit arguments, 1 The new budgeting processes (Law 17/2003) will require plans and priorities to be agreed with the legislature.

Then the dinas are assigned to prepared detailed budgets based on the agreed plans and priorities.

58 Appendix 5

at both the qualitative and quantitative levels, about the resources necessary to sustain the educational activities introduced by the project.2

13. Lesson: Most projects use a block grant system to provide schools with their own funds to embark on school determined priorities. Too often this process does not include any accountability or reporting procedures that provide accurate data on what the funds have been spent on, the extent of the contribution or the benefit of the training. Block grants are an effective tool but must be implemented with clear technical directions on their use and very strict reporting and public disclosure mechanisms.

Design Approach: Schools are required to install a project-designed management information and reporting system (MIRS) and an accounting and finance information system (AFIS) and use them for monthly reporting on funds used and activities achieved. Failure to report will result in removal of the right to expend the funds. All funds received by a school must be processed through a trust account, which will be reviewed regularly and permits a bi-weekly public disclosure process. All members of the school and the school committee will be able to monitor the use of funds and report annually via a Accountability contract.

14. Lesson: There are difficulties in coordinating the activities of different consultant packages. In addition, consultant contracts seldom include accountability clauses and most consultancies do not involve a formal evaluation process.

Design Approach: There are 3 internationally tendered consultancy packages. One package includes an overall project coordination and accountability function with special emphasis on supervising the consultancy inputs and ensuring compliance with project requirements.

15. Lesson: Consultants’ commencement too late relative to the project commencement.

Design Approach: Mechanisms are in place for GOI to secure the project coordination, project management and the project evaluation consultants within the first quarter of project implementation and processes that permit ADB to hire with Government non-objection must be incorporated into the design.

16. Lesson: The GOI and the ADB financial reporting systems are different. They use different cost categories which creates difficulties in regular reporting requirements to both agencies. Also, the project financial system used in ADB projects typically involves long delays in processing withdrawal applications and in the disbursement process.

Design Approach: The project includes the establishment of a Finance Information Support Unit within the PMU but supported by one of the consultancy contracts. This unit will be supported by project designed software which will permit the preparation of reports in two formats – one to satisfy GOI and the other ADB. In addition, the design provides for direct payment from ADB for a large number of the procurement contracts. The fact that over 50% of the loan will be directed to schools via the block grant program will help the withdrawal application and disbursement process.

17. Lesson: Typically the projects concentrate on delivering project inputs to meet targets that are specified in various agreements with insufficient time devoted to monitoring, providing guidance, quality assurance and outcome assessment. 2 In 2004, the General Secondary and Vocational/Technical Secondary Directorates collaborated on 3-4 day

workshops with provincial and district officials to review priorities established by their respective legislatures along with central government perceptions. This demonstrates commitment to ensure all education authorities seek common targets, set performance indicators and establish planning and implementation mechanisms.

Appendix 5 59

Design Approach: The project has a results-based focus, with target specifications that are carefully and consistently documented, along with formal mechanisms to commit to the process of using results monitoring for ongoing feedback and design adjustments.

D. Project Implementation

18. Lesson: The gap between project design and actual project implementation is often so long that some parts of the design are no longer valid and the original intent of the project is no longer clear to all parties. Mobilizing qualified technical advisors is usually caught up in bureaucratic processes that delay the formal contribution of such technical advice until well into project implementation. This means that bad habits and incorrect interpretations have already set in by the time alternate advice is available.

Design Approach: The PPTA has prepared detailed terms of reference for all consulting services and all training-related procurement packages. In addition, MONE has committed to preparing the Project Administration Memorandum in sufficient detail that it captures the project design intent as conceived by the current team of government and contracted personnel. MONE will advertise the consulting and procurement contracts prior to the end of 2005 in order that the selection process for these services can be complete prior to loan commencement and ADB non-objection can be received during the first month of project implementation.

19. Lesson: Training courses listed as priorities within the staff development framework are offered using different syllabus and different instructors in different locations, which creates inconsistency. Also the delivery of training courses is often very inefficient because of third party controlled funds with invitations to participants occurring at the last minute and with little recognition of common competency levels.

Design Approach: Authorized service providers will be selected to deliver training funded by the project. Schools will register their own staff, using their own funds from the block grant, based on a listing of courses that are project accredited and listed in the Project Training Catalog. Instructors for these courses will also be pre-authorized and pre-trained as qualified trainers. Teachers will only be accepted as registrants if they have fulfilled all prerequisites.

20. Lesson: The use of international versus local trainers is very expensive given the need for ongoing guidance and support, Also, there is difficulty in developing a local cadre of experts who can provide ongoing support to capacity building.

Design Approach: Project includes certifying National Education Technical Advisors who will be trained by both national and international experts. The intent is to provide a provincial cadre of experts who are recognized and readily available as local resource.

21. Lesson: The model of trying to spread similar resources over a range of industry sectors and widely separated geographic locations does not achieve sustained impact.

Design Approach: Project will apply vocational competency-based training, will concentrate on a few programs, and ensure target schools are within reasonable proximity of each other.

22. Lesson: Principals are key players in any school reform program but often the scope and pace of change required is beyond their individual capabilities and those of their key support personnel.

23. Design Approach: A 250-day certificate program in School Leadership is included in the project. The program will cater to principals, vice principals, and other key staff and lead

60 Appendix 5

teachers who either aspire to be school managers or wish to improve their professional and career opportunities

24. Lesson: Most teachers have limited professional capabilities in basic technology skills as well as in reading and comprehension and English skills.

Design Approach: A 250-day certificate program for teachers in 10 SMA subjects and 10 SMK programs/subjects is included in the project. Integral to the program is 115 days of ICT and English as well as selected 5-day courses in other key areas of competency (e.g. research skills).

25. Lesson: Teachers and principals are interested in gaining access to resource materials and professional support but they lack the facility to access such materials available via the internet and web portals.

Design Approach: A Teacher Resource Center is included in the recommended input for each school. The Center is a place where teachers can have access to the internet and also a place where they can prepare lessons, etc. Similarly, principals will have such access through the school administrative systems recommended.

26. Lesson: Engaging in school reform programs requires continuity of personnel and continued commitment to high standards.

Design Approach: Covenants are included to ensure that individuals who have the benefit of extensive project investment in their careers commit to continued support for their respective schools. Also, district officials are required to commit to retaining principals and teachers in their positions rather than the project having to deal with changes in personnel.

Appendix 6 61

ADB ASSISTANCE TO THE EDUCATION SECTOR

Table A6.1: Loans Number TITLE Date of

Approval Amount ($ million)

Closing Date

A. Primary and Junior Secondary

1194 Junior Secondary Education 19 Nov 1992 105.00 01 Oct 1998 1359 Private Junior Secondary Education 18 Jul 1995 49.00 31 Oct 2000 1442 Basic Education 06 Jun 1996 85.00 31Oct 2001 1622 Social Protection Sector Development Program 09 Jul 1998 100.00 18 Feb 2000 1623 Social Protection Sector Development Project 09 Jul 1998 200.00 31 Jan 2001 1573 Second Junior Secondary Education Project 06 Nov 1997 129.770 28 Jul 2004 1574 (SF) Second Junior Secondary Education Project 06 Nov 1997 14.576 28 Jul 2004 Subtotal (A) 539.00

B. Senior Secondary Education 356 (SF) Senior Technical Schools 28 Sep 1978 24.00 25 May 1990 488 Second Senior Technical Schools 27 Nov 1980 26.00 07 Aug 1990 574 Vocational Education 29 Jun 1982 40.00 26 Dec 1990 675 Agricultural Education a 20 Dec 1983 68.00 09 Mar 1993 715 Third Senior Technical Schools 11 Dec 1984 83.00 30 Sep 1993 969 Second Vocational Education 07 Sep 1989 70.00 31 Mar 1996 970 (SF) Second Vocational Education 07 Sep 1989 30.00 31 Mar 1996 1050 Agricultural Technology Schools 13 Nov 1990 85.00 30 Sep 1997 1100 Technical Education Development 26 Sep 1991 100.00 30 Dec 1998 1319 Vocational and Technical Education 27 Sep 1994 85.00 30 Jun 2000 1360 Senior Secondary Education 18 Jul 1995 110.00 31Oct 2000 1519 Development of Madrasah Aliyahs 25 Mar 1997 85.00 30 Apr 2003 1519 Decentralized Basic Education: Bali/Lombok 15 Mar 1997 85.00 Underway Subtotal (B) 806.00

C. Higher Education 244 Surabaya Institute of Technology 02 Dec 1975 14.50 24 Apr 1987 402 (SF) University of Hasanuddin 07 Jul 1979 25.00 07 Nov 1989 525 University of North Sumatera 24 Sep 1981 26.00 02 Apr 1991 675 Agricultural Education a 20 Dec 1983 0.00 09 Mar 1993 737 University of Sriwijaya 21 May 1985 37.90 31 Dec 1993 894 Marine Sciences Education 14 Jul 1988 43.25 31 Mar 1996 895 (SF) Marine Sciences Education 14 Jul 1988 30.10 31 Mar 1996 1013 Six Universities Development and Rehabilitation 08 Mar 1990 114.00 31 Dec 1996 1253 Higher Education 21 Sep 1993 140.00 30 Apr 2000 1432 Engineering Education Development 06 Feb 1996 102.00 01 Apr 2001 1792 Technological and Professional Skills 29 Nov 2000 180.00 10 Sep 2006 Development Sector Subtotal (C) 712.75 D. Others 804 MPW Manpower Education and Training 27 Nov 1986 29.00 31 Dec 1993 822 Special Project Implementation Assistance b 16 Dec 1986 30.60 20 Feb 1990 Subtotal (D) 59.60

Total 2,117.35

62 Appendix 6

Table A6.2: Technical Assistance Number Title Type Date of Amount

Approval ($’000)

A. Primary and Junior Secondary 1458 Rationalization of Operation and Maintenance in Primary and PP 28 Dec 1990 350.0

Secondary Education 1527 Lower Secondary Education PP 24 Jun 1991 571.0

1567 Private Secondary Education AO 26 Sep 1991 450.0 1902 Private Secondary Education PP 23 Jun 1993 520.0 2123 Basic Education (MORA) PP 19 Jul 1994 600.0 2667 Rationalizing and Strengthening In-service Teacher Training PP 23 Oct 1996 538.0 2638 Second Junior Secondary Education PP 05 Sep 1996 100.0 3005 Social Protection Sector Dev. Program PP 14 Apr 1998 150.0 3007 Basic Education in Bali and Nusa Tenggara Barat PP 16 Apr 1998 150.0 3041 Monitoring and Evaluating the Social Protection Sector Dev. Program AO 09 Jul 1998 1,500.0 3042 Capacity Bldg for Decentralized Social Services Delivery AO 09 Jul 1998 900.0 3041 Monitoring and Evaluating the Social Protection AO 15 Apr 1999 1,000.0 Sector Dev. Program (Supplementary)

3041 Monitoring and Evaluating the Social Protection AO 13 Jun 2000 2,000.0 Sector Dev. Program (Supplementary)

3456 Preparation of the Decentralized Basic Education Project PP 14 Jun 2000 150.0 Subtotal (A) 8,979.00

B. Senior Secondary Education

195 Senior Technical Schools PP 31 May 1977 196.0 323 Second Senior Technical Schools PP 10 Dec 1979 92.0 345 Vocational Education PP 25 Mar 1980 329.0 494 Agricultural Education a PP 02 Dec 1982 238.0 702 Second Vocational Education PP 02 Sep 1985 250.0 1052 Second Vocational Education Sector PP 26 Oct 1988 100.0 1147 Agricultural Technology Schools PP 19 Apr 1989 362.0 1752 Third Vocational Education PP 17 Sep 1992 450.0 2412 Development of Madrasah Aliyahs PP 02 Oct 1995 600.0 4239 Decentralized Senior Secondary Education PP 5 Dec 2003 1,400.0 4547 Madrasah Education Development PP 23 Dec 2004 1,200.0 Subtotal (B) 5,217.00

Higher Education C. 127 Surabaya Institute of Technology PP 19 Sep 1974 143.0

223 University of Hasanuddin PP 15 Dec 1977 205.0 274 University of North Sumatera PP 20 Dec 1978 246.0 494 Agricultural Education a PP 02 Dec 1982 0.0 528 University of Sriwijaya PP 24 Jul 1983 200.0 844 Marine Sciences Education PP 01 Dec 1987 350.0 1018 Five Universities Development & Rehabilitation PP 01 Aug 1988 450.0 1702 Outer Islands Universities PP 25 May 1992 465.0 1761 Second Surabaya Institute of Technology PP 30 Sep 1992 78.0 1824 Study on Private Postsecondary Education AO 24 Dec 1992 425.0 2096 Engineering Education Development PP 07 Jun 1994 800.0 Subtotal (C) 3,362.0

D. Others 1530 Human Resources Development in the Trade Sector PP 26 Jun 1991 400.0

1839 Impact Evaluation Study in the Education Sector AO 03 Dec 1992 100.0 2548 Education Finance Study AO 25 Mar 1996 500.0

Subtotal (D) 1,000.0 Total 18,558.0

Appendix 7 63

LIST OF SCHOOLS BY PROVINCE

SMA SMK No. PROVINCE

PUBLIC PRIVATE PUBLIC PRIVATE TOTAL

1. NORTH SUMATRA 4 2 4 1 11 2. WEST SUMATRA 5 2 7 3. RIAU 2 1 2 5 4. KEPULUAN RIAU 1 1 5 JAMBI 2 1 2 5 6 S. SUMATRA 4 2 1 7

7 BANGKA BELITUNG 1 1

8 LAMPUNG 3 1 4 9 BANTEN 4 1 1 6

10 DKI JAKARTA 6 2 5 13 11 WEST JAVA 8 4 6 19 12 CENTRAL JAVA 9 1 8 18 13 YOGYAKARTA 3 1 3 7 14 EAST JAVA 11 1 8 1 21 15 BALI 4 2 6 16 NTB 3 3 17 NORTH SULAWESI 1 2 1 4 18 SOUTH SULAWESI 4 2 2 8 19 W. KALIMANTAN 1 1 20 S. KALIMANTAN 4 4 21 E. KALIMANTAN 4 2 6 22 PAPUA 1 1 TOTAL 79 20 56 2 157

64 Appendix 7

SUMMARY OF CANDIDATE NRS BY PROVINCE AND DISTRICT

PROVINCE/DISTRICT SMA SMK TOTAL

SCHOOLS BY

DISTRICT

NORTH SUMATERA

SMAN 1 Medan SMKN 10 Medan SMAS Sutomo 1 SMKN 9 Medan Kota Medan SMAS Muhammadiyah 4

5

Kab. Tapanuli Selatan SMAN 3 Sipirok SMKN 1 Percut Sei Tuan 2 Kab. Tapanuli Tengah SMAN 1 Matauli SMKS Tunas Pelita Binjai 2 Kab. Tapanuli Utara SMAN 2 Balige SMKN 1 Balige 2

TOTAL DISTRICTS 4 11

WEST SUMATERA

Kota Bukit Tinggi SMAN 1 Bukit Tinggi SMKN 1 Bukittinggi 2 SMAN 1 Padang SMKN 6 Padang

Kota Padang SMAN 10 Padang

3

Kota Padang Panjang SMAN 1 Padang Panjang 1 Kota Pasaman SMAN 1 Lubuk Sikaping 1

TOTAL DISTRICTS 4 7

RIAU

SMAN 8 Pekan Baru SMKN 3 Pekanbaru SMAN Plus Riau

4 Kota Pekan Baru

SMA Babusalam Kepulauan Riau SMAN 1 Batam SMKN 1 Batam 2

TOTAL DISTRICTS 2 6

JAMBI

SMAN 1 Jambi SMKN 3 Jambi SMAN 3 Jambi SMKN 4 Jambi

5 Kota Jambi

SMA Titian Beras

TOTAL DISTRICT 1 5

SOUTH SUMATRA

Kab. Muara Enim SMAN 1 Muara Enim 1 Kab. Oki SMAN 1 Kayu Agung 1 Kab. Muba SMAN 2 Sekayu 1

SMAN 17 Palembang SMKN 6 Palembang SMAS Xaverius 1 Kota Palembang SMAS Kusuma Bangsa

4

TOTAL DISTRICTS 4 7

Appendix 7 65

PROVINCE/DISTRICT SMA SMK TOTAL

SCHOOLS BY

DISTRICT

BANGKA BELITUNG

Kota Pangkal Pinang SMKN 3 Pangkal Pinang 1

TOTAL DISTRICT 1 1

LAMPUNG

Kota Bandar Lampung SMAN 9 Bandar Lampung 1 Kota Metro SMAN 1 Metro SMKN 2 Metro 2 Kab. Lamteng SMAN 1 Kota Gajah 1

TOTAL DISTRICTS 3 4

BANTEN

Kab. Serang SMAN 1 Serang 1 Kab. Tangerang SMAN 1 Pamulang 1 Kota Cilegon SMAN 2 Cilegon 1

SMAN 1 Tangerang SMKN 2 Tangerang Kota Tangerang SMAS Al-Azhar BSD

3

TOTAL DISTRICTS 4 6

DKI JAKARTA

Jakarta Barat SMAN 78 Jakarta 1 Jakarta Pusat SMAN 68 Jakarta SMKN 27 Jakarta 2

SMAN 8 Jakarta SMKN 57 Jakarta SMAN 70 Jakarta Jakarta Selatan SMAS Al-Azhar 1

4

SMAN 81 Jakarta SMKN 26 Jakarta Jakarta Timur

SMAS Lab School Jakarta 3

SMAN 13 Jakarta SMKN 33 Jakarta Jakarta Utara

SMKN 4 Jakarta 3

TOTAL DISTRICTS 5 13

WEST JAVA

Kab. Bandung SMAS Krida Nusantara SMKN 9 Bandung 2 SMAN 1 Tambun, Bekasi

Kab. Bekasi Int'l Islamic Boarding School

2

Kab. Subang SMAN 1 Subang 1 Kota Bandung SMAN 3 Bandung 1 Kota Bekasi SMAN 5 Bekasi 1 Kota Bogor SMAN 1 Bogor SMKN 3 Bogor 2 Kota Cirebon SMAN 2 Cirebon SMKN 1 Mundu 2

66 Appendix 7

PROVINCE/DISTRICT SMA SMK TOTAL

SCHOOLS BY

DISTRICT SMAN 2 Depok SMAS Cakra Buana Kota Depok SMAS Lazuardi

3

Kota Tasikmalaya SMAN 2 Tasikmalaya 1 Kab. Ciamis SMKN 1 Ciamis 1 Kota Cimahi SMKN 1 Cimahi 1 Kab. Garut SMKN 2 Garut 1

TOTAL DISTRICTS 12 18

DI YOGYAKARTA

KAB. Bantul SMAN 1 Kasihan Bantul SMKN 1 Bantul 2 SMAS Muhammadiyah 2 SMKN 4 Yogyakarta SMAN 1 Yogyakarta Kota Yogyakarta SMAN 3 Yogyakarta

4

Kab. Kulonprogo SMKN 2 Pengasih 1

TOTAL DISTRICTS 2 7

CENTRAL JAVA

Kab. Banyumas SMAN 1 Purwokerto 1 Kab. Kebumen SMAN 1 Kebumen 1 Kab. Klaten SMAN 1 Klaten SMKN 3 Klaten 2 Kab. Magelang SMAS Taruna Nusantara 1 Kab. Pati SMAN 1 Pati 1 Kab. Temanggung SMAN 1 Temanggung SMKN 1 Temanggung 2 Kota Magelang SMUN 1 Magelang SMKN 1 Magelang 2 Kota Salatiga SMAN 1 Salatiga 1

SMUN 3 Semarang SMKN 7 Semarang Kota Semarang

SMKN 6 Semarang 3

Kota Surakarta SMUN 1 Surakarta SMKN 2 Surakarta 2 Kota Tegal SMKN 3 Tegal 1 Kab. Jepara SMKN 1 Jepara 1

TOTAL DISTRICTS 10 18

EAST JAVA

Kab. Bojonegoro SMAN 1 Bojonegoro 1 Kab. Gresik SMAN 1 Gresik 1 Kab. Jember SMAN 1 Jember SMKN 1 Sukorambi 2 Kab. Jombang SMAN 1 Mojoagung 1

Appendix 7 67

PROVINCE/DISTRICT SMA SMK TOTAL

SCHOOLS BY

DISTRICT SMAS Darul Ulum 2 1

Kab. Madiun SMAN 3 Madiun 1 Kab. Sidoarjo SMAN 1 Sidoarjo 1 Kab. Tuban SMAN 1 Tuban 1 Kota Kediri SMAN 2 Kediri 1

SMAN 3 Malang SMKN 4 Malang Kota Malang

SMKN 3 Malang 3

Kab. Malang SMKN 1 Singosari 1 SMAN 5 Surabaya SMKN 1 Surabaya SMAN 15 Surabaya SMKN 6 Surabaya Kota Surabaya SMKS St Louis Surabaya

5

Kab. Mojokerto SMKN 1 Pungging 1 Kab. Banyuwangi SMKN 1 Glagah 1

TOTAL DISTRICTS 13 21

BALI

SMAN 4 Denpasar SMKN 1 Denpasar Kota Denpasar

SMAN 1 Denpasar SMKN 3 Denpasar 4

Kab. Gianjar SMAN 1 Gianjar 1 Kab. Buleleng SMAN 1 Singaraja 1

TOTAL DISTRICTS 3 6

NTB

SMKN 3 Mataram Kota Mataram

SMKN 4 Mataram 2

Kab. Lombok Barat SMKN 2 Kuripan 1

TOTAL DISTRICTS 2 3

NORTH SULAWESI

SMAN 9 Manado SMKN 3 Manado Kota Manado

SMAS Eben Heizer 3

Kota Tomohon SMAS Lokon 1

TOTAL DISTRICTS 2 4

SOUTH SULAWESI

Kab. Bone SMAN 1 Tulusiatingge 1 Kab. Gowa SMAN 2 Tinggimoncong 1 Kab. Tana Toraja SMAS Kristen Barana 1

SMAN 15 Makassar SMKN 3 Makassar Kota Makassar SMAN 17 Makassar SMKN 8 Makassar

5

68 Appendix 7

PROVINCE/DISTRICT SMA SMK TOTAL

SCHOOLS BY

DISTRICT SMAS Athirah

TOTAL DISTRICTS 4 8

WEST KALIMANTAN

Kab. Ketapang SMKN 2 Ketapang 1

TOTAL DISTRICT 1 1

SOUTH KALIMANTAN

Kota Banjarmasin SMAN 1 Banjar Masin 1 Kab. Banjarmasin SMAN 7 Banjar Masin 1 Kab. Banjar SMAN 1 Martapura 1 Kota Banjar Baru SMAN 1 Banjar Baru 1

TOTAL DISTRICTS 4 4

EAST KALIMANTAN

SMAN 10 Samarinda Kota Samarinda

SMAN 1 Samarinda 2

SMAN 1 Balikpapan SMKN 1 Balikpapan Kota Balikpapan

SMKN 4 Balikpapan 3

Kota Bontang SMAN 1 Bontang 1

TOTAL DISTRICTS 3 6

PAPUA

Kota Jayapura SMKN 1 Jayapura 1

TOTAL DISTRICT 1 1 GRAND TOTAL 85 157

Appendix 7 69

NUMBER AND TYPE OF CANDIDATE NATIONAL REFERENCE SCHOOL BY PROVINCE

NO. OF SCHOOLS SMA TOTAL

SMA NO. OF

SCHOOLS SMK TOTAL SMK

NORTH SUMATERA 1 SMAN 3 Sipirok 1 SMKN 10 Medan 2 SMAN 1 Matauli 2 SMKN 1 Percut Sei Tuan 3 SMAN 2 Balige 3 SMKN 1 Balige

4

4 SMAN 1 Medan

4

4 SMKN 9 Medan

1 SMAS Sutomo 1 1 SMKS Tunas Pelita Binjai 1 2 SMAS Muhamadiyah 4 2

Total Number of Schools 11 WEST SUMATERA

1 SMAN 1 Padang Panjang 1 SMKN 1 Bukittinggi 2 SMAN 1 Padang 2 SMKN 6 Padang

2

3 SMAN 1 Bukit Tinggi 4 SMAN 10 Padang 5 SMAN 1 Lubuk Sikaping

5

Total Number of Schools 7

RIAU 1 SMAN 8 Pekan Baru 1 SMKN 3 Pekanbaru 2 SMAN 7 Plus Riau 3 2 SMKN 1 Batam 2

1 SMAS Babusalam 1 Total Number of Schools 6

KEPULAUAN RIAU 1 SMAN 1 BATAM 1

Total Number of Schools 1 JAMBI

1 SMAN 1 Jambi 1 SMKN 3 Jambi 2 SMAN 3 Jambi 2 2 SMKN 4 Jambi 2

1 SMAS Titian Beras 1 Total Number of Schools 5

SOUTH SUMATERA 1 SMAN 17 Palembang 1 SMKN 6 Palembang 1 2 SMAN 1 Kayuagung 3 SMAN 1 Muara Enim 4 SMAN 2 Sekayu

4

1 SMAS Xaverius 1 2 SMAS Kusuma Bangsa 2

Total Number of Schools 7 BANGKA BELITUNG

1 SMKN 3 Pangkal Pinang 1 Total Number of Schools 1

LAMPUNG 1 SMAN 9 Bandar Lampung 3 1 SMKN 2 Metro 1

70 Appendix 7

NO. OF SCHOOLS SMA TOTAL

SMA NO. OF

SCHOOLS SMK TOTAL SMK

2 SMAN 1 Metro 3 SMAN 1 Kota Gajah

Total Number of Schools 4 BANTEN

1 SMAN 1 Tangerang 1 SMKN 2 Tangerang 1 2 SMAN 1 Pamulang 3 SMAN 2 Cilegon 4 SMAN 1 Serang

4

1 SMAS Al-Azhar BSD 1 Total Number of Schools 6

DKI JAKARTA 1 SMAN 78 Jakarta 1 SMKN 57 Jakarta 2 SMAN 68 Jakarta 2 SMKN 27 Jakarta 3 SMAN 8 Jakarta 3 SMKN 33 Jakarta 4 SMAN 70 Jakarta 4 SMKN 4 Jakarta 5 SMAN 81 Jakarta 5 SMKN 26 Jakarta

5

6 SMAN 13 Jakarta

6

1 SMAS Al-Azhar 1 2 SMAS Lab School Jakarta 2 Total Number of Schools 13

WEST JAVA 1 SMAN 1 Bogor 1 SMKN 1 Ciamis 2 SMAN 3 Bandung 2 SMKN 1 Cimahi 3 SMAN 2 Cirebon 3 SMKN 1 Mundu 4 SMAN 2 Tasikmalaya 4 SMKN 2 Garut 5 SMAN 1 Subang 5 SMKN 3 Bogor 6 SMAN 5 Bekasi 6 SMKN 9 Bandung

6

7 SMAN 1 Tambun, Bekasi 8 SMAN 2 Depok

8

1 SMAS Krida Nusantara 2 SMAS Cakra Buana

3 International Islamic Boarding School

4

4 SMA Lazuardi Total Number of Schools 18

CENTRAL JAVA 1 SMUN 1 Magelang 1 SMKN 2 Surakarta 2 SMUN 3 Semarang 2 SMKN 1 Temanggung 3 SMAN 1 Pati 3 SMKN 1 Jepara 4 SMAN 1 Salatiga 4 SMKN 7 Semarang 5 SMAN 1 Temanggung 5 SMKN 1 Magelang 6 SMUN 1 Surakarta 6 SMKN 3 Tegal 7 SMAN 1 Klaten 7 SMKN 6 Semarang 8 SMAN 1 Purwokerto 8 SMKN 3 Klaten

8

9 SMAN 1 Kebumen

9

Appendix 7 71

NO. OF SCHOOLS SMA TOTAL

SMA NO. OF

SCHOOLS SMK TOTAL SMK

1 SMAS Taruna Nusantara 1 Total Number of Schools 18

YOGYAKARTA 1 SMAN 1 Yogyakarta 1 SMKN 1 Bantul 2 SMAN 3 Yogyakarta 2 SMKN 2 Pengasih 3 SMAN 1 Kasihan Bantul

3 3 SMKN 4 Yogyakarta

3

1 SMAS Muhammadiyah 2 1 Total Number of Schools 7

EAST JAVA 1 SMAN 5 Surabaya 1 SMKN 1 Surabaya 2 SMAN 15 Surabaya 2 SMKN 4 Malang 3 SMAN 1 Tuban 3 SMKN 1 Sukorambi 4 SMAN 1 Bojonegoro 4 SMKN 1 Singosari 5 SMAN 1 Mojoagung 5 SMKN 1 Glagah 6 SMAN 1 Gresik 6 SMKN 1 Pungging 7 SMAN 1 Sidoarjo 7 SMKN 6 Surabaya 8 SMAN 2 Kediri 8 SMKN 3 Malang

8

9 SMAN 3 Malang 10 SMAN 3 Madiun 11 SMAN 1 Jember

11

1 SMAS Darul Ulum 2 1 1 SMKS St Louis Surabaya 1 Total Number of Schools 21

BALI 1 SMAN 4 Denpasar 1 SMKN 1 Denpasar 2 SMAN 1 Denpasar 2 SMKN 3 Denpasar 2

3 SMAN 1 Gianjar 4 SMAN 1 Singaraja

4

Total Number of Schools 6

NTB 1 SMKN 3 Mataram 2 SMKN 2 Kediri 3 SMKN 4 Mataram

3

Total Number of Schools 3 NORTH SULAWESI

1 SMAN 9 Manado 1 1 SMKN 3 Manado 1

1 SMAS Lokon 2 SMAS Eben Heizer 2 Total Number of Schools 4

SOUTH SULAWESI 1 SMAN 2 Tinggimoncong 1 SMKN 3 Makassar 2 SMAN 15 Makassar 2 SMKN 8 Makassar 2

3 SMAN 17 Makassar 4 SMAN 1 Tulusiatingge

4

1 SMAS Kristen Barana 2

72 Appendix 7

NO. OF SCHOOLS SMA TOTAL

SMA NO. OF

SCHOOLS SMK TOTAL SMK

2 SMAS Athirah Total Number of Schools 8

WEST KALIMANTAN 1 SMKN 2 Ketapang 1

Total Number of Schools 1 SOUTH KALIMANTAN

1 SMAN 1 Banjar Masin 2 SMAN 1 Banjar Baru 3

SMAN 1 Martapura

4 SMAN 7 Banjar Masin

4

Total Number of Schools 4

EAST KALIMANTAN 1 SMAN 10 Samarinda 1 SMKN 1 Balikpapan 2 SMAN 1 Balikpapan 2 SMKN 4 Balikpapan 2

3 SMAN 1 Samarinda 4 SMAN 1 Bontang

4

Total Number of Schools 6

PAPUA 1 SMKN 1 Jayapura 1 Total Number of Schools 1

TOTAL SMA - PUBLIC 79 TOTAL SMK - PUBLIC 56

TOTAL SMA - PRIVATE 20 TOTAL SMK - PRIVATE 2

GRAND TOTAL 99 GRAND TOTAL 58

Appendix 8 73

TECHNICAL ASSISTANCE FOR PROJECT EVALUATION AND RESEARCH AND POLICY AND STRATEGY DEVELOPMENT IN SENIOR SECONDARY EDUCATION (SSE)

A. Background

1. Senior secondary education occupies a pivotal position in the development of the Indonesian economy and higher education. It will be under increasing social pressure for expansion as education for all (EFA) succeeds, and the graduates of lower secondary education seek increasingly to continue their studies. Senior secondary education will also be called upon to produce graduates ready to take up increasingly skilled positions in the labor force. It is also a major determinant of the quality of higher education, which itself will need to change and adapt to technological changes.

2. The proposed Second Senior Secondary Education project to be financed by the ADB provides a unique opportunity to use the experience of focused interventions designed to improve school effectiveness and the experience of partnership with government, business and non-government agencies as part of policy and strategy development. The project design includes much-needed experiments on various means to build quality in the sub-sector. The project also provides for evaluation and research on the nature and the process of institutionalizing support networks in order to replicate successful initiatives. The design also provides a basis to assist in the development of government policy on the sub-sector and the articulation of national, regional and sectoral strategies.

3. Following is an outline of the objectives, scope and content of an ADB grant funded technical assistance to conduct four activities: (a) project evaluation in support of annual, mid-term and project benefit and project completion assessment of the SSE loan project; (b) special research options; (c) comprehensive SSE sub-sector analysis; and (d) setting the foundation for determining strategic directions and policy options.

4. This TA’s evaluation related activities will provide information on the external accountability of the loan project to both the Government and ADB. It will also provide key input into models of school effectiveness, measures of quality standards, including institutionalized support networks to facilitate sustainability and replication. The TA’s research related will provide information for policy support to enable MONE to integrate SSE development in the context of regional autonomy and also to enable implementation of the MONE 2005-2009 Strategic Plan priorities. All outputs may be used by the ADB in future country strategies and future project designs.

B. Objectives and Scope

1. Project evaluation

1. The Second Senior Secondary Education Project (SSEP) could be defined as a complicated project intended to achieve what is – in the end – a very simple purpose: to increase the number of SSE students graduating with improved qualifications, skills and attributes of greater relevance to the global market place and as more educated citizens. The project becomes complicated because the existing international standard SSE is now offered by the private sector at very high cost and the project is intended to develop methods and support networks to make this same experience accessible in the public sector. It is the task of evaluation to determine whether these goals have been achieved and whether the project processes and the project activities are, in fact, the most cost effective and efficient strategy to achieve this goal.

74 Appendix 8

2. The loan project will conduct compliance monitoring on project activities and interventions and expected results will be monitored for compliance with targets, schedules and budgets. This ADB parallel technical assistance grant will conduct evaluation. Evaluation will focus on the outputs and purpose levels of the project and relate these to overall SSE development whereas loan monitoring will focus more on compliance and management.

3. The prime focus of the loan’s monitoring activities (Package B Consultancy, Appendix 13 Project Technical Proposal) is to “keep the project on track”. This involves comparison of the actual situation with plans, targets, deadlines, and transparency; therefore, it deals with compliance. Evaluation is concerned with achieving outputs, outcomes and impacts – all of which are dependent not only upon project activities, but also upon factors external to the project (risks and assumptions). Evaluation places the evaluator in the position of researcher and facilitator whereas monitoring places the monitor in the position of auditor (or examiner).

4. Evaluating whether the goal has been achieved is conceptually quite simple. Numbers of graduates can be counted and their qualifications, skills and attributes measured.1 On the other hand, evaluating effectiveness and efficiency is difficult.

5. The project has been structured in such a way as to make this type of evaluation possible: three streams of schools will access project inputs at different times and in different packages. The delay between first and second streams and between second and third streams will allow a quasi-experimental evaluation methodology. The basic theory underlying the project is that interventions which establish and help to institutionalize high performance educational standards will improve the quality of senior secondary education. The two core project outputs are directly related to this theory: improved learning outcomes of senior secondary graduates and improved senior secondary management with continuous quality assurance (Figure 1).

Figure 1: Basic Theory of the Project

1 The project design has already institutionalized this measurement in the form of international certification of

graduates (either on a course basis or on a program basis) and graduate test scores on project-administered international standard examinations.

Purpose: Increase the number of SSE students graduating with

improved qualifications

Output 3 Increased equity for qualified

students

Output 4 Established foundation for enhanced

policy and planning

Output 1 Improved learning outcomes of

senior secondary education graduates

Output 2 Improved school management and

continuous quality assurance

Establish and help to institutionalize high performance education standards

Appendix 8 75

6. Evaluation will test whether these two outputs can, in fact, establish and institutionalize high performance educational standards and whether those standards will produce more SSE graduates with improved qualifications, skills and attributes. In Figure 1, the vertical logic of the project framework along with the contribution of this parallel ADB technical assistance grant has been organized into a theoretical logic which can form the basis of an evaluation strategy.

7. Within the core outputs there are 10 interventions (4 four Output 1 and 6 for Output 2) which comprise packages to establish and help to institutionalize high performance educational standards. Schools will choose, through the mechanism of their School Development and Investment Plans (SDIPs), which combination of interventions they will implement. The actual mechanism through which the project will deliver interventions to the schools is complex – involving a combination of direct project provision and third-party service providers. This will be monitored by the loan project’s Compliance Monitoring Unit.

8. The evaluation effort will be concentrated on the efficiency and effectiveness of these packages of interventions toward establishing and institutionalizing high performance educational standards and, ultimately, their efficiency and effectiveness in increasing accessibility to international standard SSE, which will produce an increased number of SSE students graduating with improved qualifications, skills and attributes of greater relevance to the global market place and as more educated citizens. Figure 2 shows the theoretical basis for the packages of interventions for Output 1 and Figure 3 for Output 2.

Figure 2: Theoretical Basis for Packages of Interventions for Output 1

9. Evaluation activities will be conducted at various times as preparatory for two key points in time: during the 3rd year of the project in preparation for the Bank’s Mid-Term review and for the reports required at the end of the project. The evaluation conducted through this ADB TA grant will not include a formal “baseline” survey in support of the loan. Rather, pre-project conditions, i.e. current conditions data, will be adequately described from existing secondary data sources and the initial SDIPs. Respondents in the surveys during the 3rd and 6th year will be asked about “changes” which they have experienced, which requires them to compare their current situation with the situation at the beginning of the project (implicit baseline).

Output 1 Improved learning outcomes of SSE graduates

a. Strengthen standards for learning environment, curriculum and student

t

b. Improve performance of teachers and instructional support personnel

c. Provide and upgrade teaching materials, equipment and facilities

d. Improve career planning, job readiness and placement services

76 Appendix 8

10. This TA team will be responsible for the preparation of materials for ADB annual review missions. Loan produced compliance monitoring reports will be one source of data for these review missions. The TA will also be responsible for the preparation of materials for the Mid-Term review, the final Benefit Monitoring and Evaluation (BME) report and the Government’s project completion report (PCR). This work will be completed in conjunction with the Package A Consultancy, Project Management, Coordination and Accountability (see Loan Project Proposal, Appendix 13).

Figure 3: Theoretical Basis for Packages of Interventions for Output 2

11. This TA team will also be responsible for evaluating specific project interventions and activities which involve issues of project design, such as training courses. The CMU in the Loan Project will monitor implementation of the design and pilot testing of the courses, as well as implementation of the courses by service providers. This TA will provide input (indicators, questionnaires, methods of analysis, etc.) for the evaluation of course content, teaching-learning methodologies and follow-up support after trainees return to their schools, as well as school management. Implementation of these evaluation activities will be the responsibility of GOI monitors in cooperation with CMU. Monitors will be involved from Central and District education offices (trained by Package B for compliance and by this ADB TA grant for evaluation).

12. The approach used in evaluation will be results-based project assessment. Indicators for outputs and purpose as specified in the project framework will form the basis for assessment. Evaluation will also test the vertical logic (cause-effect relations and the role of assumptions) of the project design and monitoring framework.

Output 2 Improved school management and continuous quality assurance

a. Upgrade selected management systems to internationally recognized standards

b. Upgrade management and administration personnel

d. Increase the degree of participation of the wider community in school development

e. Establish sustainable funding initiatives

f. Institute school-based quality assurance programs

c. Improve facilities, equipment and software

Appendix 8 77

13. There will be four project evaluation activities: (i) preparation of submissions for ADB annual review missions; (ii) preparation of the GOI Mid-term review report and submissions for the ADB Mid-Term Review; (iii) Final BME Report; and, (iv) Submission of the Government PCR.

a. ADB Annual Review Mission and Project Annual Reports

1. The submissions for ADB Annual Review Missions will include: (i) original targets; (ii) revised targets; (iii) reasons for revision of targets; (iv) achievement of targets; (v) financial data; and (vi) evaluations of training courses and activities. The first annual review mission submission will also include relevant baseline data drawn from secondary sources and school management and information system (MIRS).

2. Data for (i) - (iv) will be supplied by the CMA; data for finance (v) will be supplied by the CMF; and data for (vi) will be supplied by GOI monitors in cooperation with both units within the Compliance Monitoring Unit. Analysis for all data will be done by E&R and will focus on patterns of target non-achievement or revision, causes of the changes and impacts of the changes.

b. Mid-Term Review submission (GOI)

1. This submission will focus on evaluation issues as compliance data will have been provided during the annual review missions. Compliance data for the 3rd year of the project will be submitted at the time of the mid-term review as part of the Mid-term Review Report. But, from the E&R perspective, the review will focus on progress in achieving the project outputs and purpose. Evaluation of achievement of project framework outputs and purpose will be based on the indicators from the project framework:

Purpose: More SSE graduates of higher quality will be measured by an increase in the number of SSE graduates who carry international certification in at least one course, with data provided by school reports;

Output 1: Improved student learning outcomes will be measured by an increase in the number of SSE graduates who pass international standard examination in at least one course, with data provided by school reports. Note: unlikely that by mid-term that much data will be available relative to this output although some information may be available through the testing program;

Output 2: Improved school management, facilities and equipment, and quality assurance will be measured by the number of teachers, School Committees and non-teaching staff who report significant improvements in school management, with data obtained from a school survey;

Output 3: Increased equity for qualified students and provision of special services will be measured by the distribution of special funds

78 Appendix 8

and services among various categories of eligible recipients, with data provided by school reports;

Output 4: Foundation for SSE sub-sector policy and planning established will be monitored by dissemination of project research findings and evidence that the findings have been incorporated into institutional processes, with data obtained from compliance reports of dissemination workshop organizers. Note: there will be limited findings at the mid-term review stage.

2. The mid-term review submission will also provide a preliminary assessment of some of the benefits, in particular identification, quantification and distribution of the project’s primary and secondary beneficiaries. However, given that benefits will not accrue until the third year of the project means that assessment of benefits will be included in end of project reports.

3. School reports as the source data for purpose, Output 1 and Output 3 will be collected as part of the compliance monitoring by the CMU. Dissemination workshop proceedings as the source data for Output 4 will also be collected as part of the compliance monitoring by the CMU.

4. The school survey as the source data for Output 2 will be planned and organized by E&R, using GOI monitors as field workers and field supervisors. E&R will develop training materials and train the monitors. The school survey will cover all NRS schools which have participated in project interventions since year 1 of the project (Stream 1).

5. One of the key surveys to be completed by the E&R team is the design and implementation of a project testing regime in order to assess the project contribution to improved student outcomes.

6. Conclusions and recommendations in the mid-term review submission will focus on overall benefits and achievements, as a basis for possible restructuring and reallocation of project funds. It should be noted that the annual SDIP review meetings will provide key information for possible restructuring in addition to information gained via the mid-term review.

c. Benefit Monitoring and Evaluation

1. The Benefit Monitoring and Evaluation Report (BME) due as part of the project’s final reporting obligations will involve different beneficiaries:

1. Primary beneficiaries: • SSE students/graduates

2. Secondary beneficiaries: • Principals, teachers, school staff, school committee members, and

third party service providers (e.g. P3G, LPMP, etc.)

3. Tertiary beneficiaries: • GOI operational staff at the Central, District and Provincial levels

Appendix 8 79

2. BME will assess the overall achievement of benefits as well as the distribution of benefits across the sets of beneficiaries, geographical regions, economic strata, gender etc. The report will focus specifically on project benefits and beneficiaries. As mentioned earlier, some information in this regard may be available for the Mid-Term Review but project impact on beneficiaries will be difficult to assess until after the mid-term period. The project is intended to produce benefits for primary beneficiaries, secondary beneficiaries, tertiary beneficiaries..

3. The BME framework will identify specific benefits expected for each of these groups and design a research methodology to measure the achievement and distribution of the expected benefits. The research methodology will make maximum use of data already being collected as part of compliance monitoring, existing GOI data reporting requirements and data collected for special research activities described below.

4. BME is not expected to require any special field surveys specifically for BME. Instead, BME indicators not covered by the other data sources mentioned will be incorporated into the school surveys conducted for the mid-term review evaluation submission and the Government PCR. Data for specific coverage of SSE graduates as primary beneficiaries will be generated by the student tracer study discussed below.

d. Government Project Completion Report

5. The Government PCR will update the mid-term review evaluation of achievement of project purpose and outputs. It is a stand-alone review of the entire project including a review of compliance. It also includes project financial reports compiled from data supplied by CFU. Principal findings of the research programs and results of dissemination of the conclusions and recommendations will also be reported.

2. Conduct Research and Evaluation on School Effectiveness Alternatives

1. The TA will support four research activities related to information in support of policy analysis for implementation of the MONE 2005-2009 Strategic Plan priorities on international standards in SSE: (i) models of effective schools; (ii) change management; (iii) student tracer and (iv) replicability of international standards in SSE.

a. Models of effective schools

1. Objective. The objective of this research program is to identify alternatives for establishing, enabling and increasing the number of schools at international standards, i.e. identify a variety of models of effective schools. Analysis of the models will include efficiency and effectiveness of these packages of interventions toward establishing and institutionalizing high performance educational standards and, ultimately, their efficiency and effectiveness in producing an increased number of SSE students graduating with improved qualifications, skills and attributes of greater relevance to the global market place and as more educated citizens. The result of the research program will be a collection of models of effective schools at various levels international standard quality and an evaluation of effectiveness and cost efficiency for each. The research program will specifically assess whether the project processes and activities are, in fact, the most cost effective and efficient strategy to achieve the goal of schools – and students – at international standards.

2. Methodology. The research will identify various packages of quality improvement initiatives and standards for organizational change, human resources development, teaching-learning improvement, student assessment, school-community relations, and graduate

80 Appendix 8

placement as found in existing international schools, National Plus schools and NRS schools. It will compare the packages of initiatives/standards with the quantity and quality of outputs (international standard graduates) and the costs of producing and maintaining the packages to determine relative effectiveness in producing different levels of outputs and cost efficiency for different levels of outputs.

3. As part of this study, E&R will host an annual forum for SDIP evaluation.2 The forum will focus on “lessons learned” from the SDIP process, including government capacity to evaluate, approve and monitor SDIP. It will also evaluate the various packages of interventions implemented by schools through their SDIPs. Each forum will produce Proceedings, which will become source materials for the research program.

4. Also as part of this study, the TA will complete a project administered testing regime (see Annex 1, for Review of Approach to Testing).

5. Dissemination. The program will produce two published reports on effective schools models in SMA and in SMK. The findings and conclusions of the program will be incorporated into seminars and training materials to develop the capacity of central, provincial and district government staff to evaluate and approve future candidate NRS SDIPs for effectiveness and efficiency and for all stakeholders to develop realistic targets and budgets. The results will also provide an input into the project’s contributions to the discussion of GOI guidelines on international standards relative to vocational and general SSE. In Indonesian Faculties of Education, the E&R will monitor content of curriculum/individual courses to determine to what extent the research findings have been incorporated into teacher preparation programs. Dissemination activities (seminars, workshops, follow-up meetings, etc.) will be held with central agencies and stakeholders to encourage sharing of lessons learned for setting future policy directions, including ways to make improved educational quality at the SSE level more accessible to all sectors of society, as well as improving project design and implementation.

b. Change and change management

1. Objective. The objective of this research program is to evaluate the process of change experienced by NRS in moving from traditional SSE to international quality SSE. The result of the program will be a description of the challenges faced in change together with concrete strategies and options for managing the change successfully.

2. Methodology. Introducing school reform programs is demanding. Experience elsewhere suggests that schools engaged in such improvement processes can easily lose momentum and the losses are more than the gains expected. This research program will use a methodology comparable to the evaluation of the New American Schools initiative carried out by RAND© corporation in the 1990s. It will evaluate implementation and utilization of interventions (teaching-learning methodologies, teacher and student career support; information, financial and personnel management systems; role of school committee etc.) focusing on the level of acceptance, ability to cope, and areas of resistance. The study will also address the issues faced by scholarship recipients in adapting to the NRS environment and the challenges faced by the school community in adapting to the presence of these students.

2 This will be separate from the annual performance review for each NRS, which is part of the CMU however, for

logistical and budgetary purposes, it may be held together with the performance review. It is expected that the annual performance review will be the basis for revision (if necessary and/or desirable) of the SDIPs. This evaluation forum will be focused on “lessons learned” as a contribution to identifying effective and efficient strategies and procedures.

Appendix 8 81

3. Dissemination. The program will provide preliminary information to the mid-term review submission. The program will also produce a published report on change management in SSE schools. The findings and conclusions of the program will be incorporated into training materials/certification programs for principals and teachers. In Indonesian Faculties of Education, the E&R will monitor content of curriculum/individual courses to determine to what extent the research findings have been incorporated into teacher preparation programs. The project will develop and pilot test National Reference School Professionals associations (ANRSP) for three subject areas (English, Mathematics and Physics for SMA and SMK). These ANRP groups will hold regional meetings to form professional learning communities to disseminate materials, project interventions and to provide direct liaison among NRS teachers. This forum, and the associated Digital Clearinghouse through which educators can share experiences and resources, which the project will also pioneer, will provide additional channels for dissemination of the program findings and results.

c. Student tracer

4. Objective. The objective of this research program is to map the flow of students into international standard SSE and the flow of graduates out of international standard SSE, with priority given to gender and social issues (poverty, disadvantaged, ethnic minority, etc.). The result of the program will be mapping of the flow of students into and out of international standard SSE and concrete recommendations for policies and actions to increase accessibility for females and socially disadvantaged groups.

5. Methodology. The study will identify the catchment areas for international SSE schools, National Plus schools and NRS and classify the catchment by gender and socially relevant dimensions. The study will then identify potential catchment areas for NRS based on tracer studies of relevant JSEs, including specifically JSEs serving females and socially disadvantaged groups. Finally the study will trace the graduates from international SSE schools, National Plus schools and NRS, with special attention to NRS scholarship recipients. The catchment area study will be conducted in the 1st and 6th years of the project. The SSE graduate tracer study will be conducted in the 1st, 3rd and 6th years of the project. The SSE graduate tracer study will be limited to the time period immediately following graduation, i.e. continue on to tertiary; enter the labor force; unemployed and out of the labor force (marriage, help at home, etc.).

6. Results of the graduate tracer study will be integrated with results of the models of effective schools study to allow further analysis of effectiveness and efficiency.

7. Dissemination. The program will produce a published paper containing the results of the mapping exercise and concrete recommendations for policies and actions to increase access for females and socially disadvantaged groups.

d. Replicability

8. Objective. The objective of this research program is to identify the factors which support and hinder replicability of international standards in SSE. It will build upon the Models of Effective Schools and Change and Change Management findings, which are focused primarily at the school level, and will add the government and support network dimension.

9. Methodology. The study will begin with a review of the Models of Effective Schools and Change and Change Management research program findings to identify key factors at the school level. The study will then describe the planning and budgeting processes at the District level which affect school budgets and activities, i.e. the interface between District Education

82 Appendix 8

Service planning and budgeting and school budgeting and activities for all Districts in which there are NRS. The study will pay particular attention to MONE’s policy of emphasizing the private sector contributions in extending access to SSE. The study will also review options available to MONE for support to international standard SSE. Based on these reviews, the study will provide a variety of scenarios for Districts with different characteristics, which wish to replicate different types and levels of international standard SSE.

10. Dissemination. The program will produce a published paper containing the scenarios and concrete recommendations for policies and actions to replicate different types and levels of international standard SSE.

3. Conduct sub-sector analysis

11. There is no comprehensive review of the SSE sub-sector or the relationship of graduates to either tertiary education or to the labor market. The sub-sector review will focus initially on the senior secondary schools under the Ministry of National Education (DEPDIKNAS). Thus, the study will cover both public and private academic senior secondary (SMA) and vocational senior secondary (SMK), at central, provincial, district and school levels. The study also will include madrasahs, Islamic senior secondary schools, under the Ministry of Religious Affairs (DEPAG).

12. The purpose of the sub-sector review is to provide the analytical underpinnings for a government policy on senior secondary education. The objective of the technical assistance is (1) to complete an analysis of the problems and issues in SSE and document the findings in a report (re: economic relevance; equity, quality of student achievement, management effectiveness, governance roles and responsibilities, costs and financing); and (2) to articulate policy options for SSE for government consideration based on an in-depth analysis of issues and alternatives; and (3) to prepare recommendations for strategic and operations policy for both SMA and SMK. The main analytical questions to be answered by the work in this activity are as follows:

a. Economic Relevance - To what extent are the outputs from the SSE sub-sector relevant to labor market needs?

b. Equity - To what extent are the cost burdens to households and the service delivery equitably distributed by gender, region and income level?

c. Quality – learning achievements -- To what extent are SSE schools effective in producing intended learning outcomes, i.e. in meeting quality standards? Where do the quality standards come from and are they adequate and relevant? What models for school improvement should be followed to upgrade the quality of SSE? What types of support institutions and networks are most effective and efficient in sustaining international standard learning achievements?

d. Management effectiveness -- To what extent is the SSE sub-sector managed effectively (in terms of meeting its objectives)? Who sets these objectives and how are they set? What types of policies and procedures support effective management?

e. Costs and efficiency – What is spent on various types of SSE? What are the sources of these resource flows? What are the required investment and operating costs to upgrade and maintain various types of existing SSE to international standards? To what extent is the SSE sub-sector efficient in the use of resources?

Appendix 8 83

13. The following tasks will be accomplished: (a) document review and analysis, (b) statistical analysis, (c) field interviews (employers, parents, students, education and school administrators, teachers, higher education authorities); (d) field surveys including: (i) a tracer study on SMK graduates, including assessment of local comparative advantage and international placements; (ii) a tracer study on SMA graduates; (iii) survey on the socio-economic profile of students; and (iv) analysis of learning outcomes of students; (v) analysis of school and district-level management; and, (vi) unit cost analysis at specific sample schools.

14. Funds are included for data analysis staff including setting up required databases, input data, and assist in preliminary analysis. Some of the costs associated with the work are included in the loan proposal e.g. training of research and evaluation monitors from district and provincial agencies, LPMP, P3G, etc.

15. The activities involved including: (i) collect statistical data and information on SSE; (ii) conduct interviews with government officials, schools officials, teachers, students, parents, employers, and community members to collect their views on SSE; (iii) analyze the main issues and problems in SSE, including dimensions, causes and consequences; and (iv) conduct regional and national forums to present preliminary data and observations and to canvas suggestions for system improvements. The expected result is a comprehensive report on senior secondary education that will identify a focused direction for the sub-sector, including providing government and the public with alternatives to be considered.

16. Anticipated Outcomes: The analytical basis for a comprehensive policy on SSE, including the basis for future investments to increase accessibility to international standard SSE. Expected results will include: (i) comprehensive analysis of the main issues in terms of dimensions, causes, consequences including required statistical analysis and survey results; (ii) alternative solutions to key issues, and their advantages, disadvantages; (iii) policy and strategy recommendations; (iv) investment recommendations. The results of the sub-sector analysis are closely linked with the TA’s fourth activity outlined below.

4. Determine strategic directions and policy options

17. The output from the evaluation, the research activities and the sub-sector analysis will provide the foundation for public forums and internal government workshops to discuss strategic directions and policy options for senior secondary education. The project will fund the preparation of a discussion paper produced as a foundation for broad dialog on increasing accessibility to international standard SSE. The TA will fund prepare for and convene: (i) 6 regional workshops to share preliminary observations from project evaluation, research and the sub-sector analysis; and (ii) a national forum comprised of recognized academics (national and international) to provide an insight into alternatives based on the project findings and on experience and practices in other systems. Proceedings from the regional and the national forums will provide a basis for documenting recommended international standards for teaching-learning process, school management and community liaison and possible directions for the sub-sector. Expected results are: (i) proceedings that provide a foundation for broad dialog on transforming senior secondary education to international standards and on policy options; (ii) recommendations on intergovernmental operating procedures and education funding; (iii) suggested options on school financing practices, school quality improvement alternatives, curriculum, equity and access priorities; and (iv) guidelines for consideration in the development and implementation of an overall long-term strategic plan.

84 Appendix 8

C. Implementation Arrangements and Technical Assistance

18. All activities of this ADB grant will be conducted in cooperation with the parallel Second Senior Secondary Education loan project (six years).

19. This TA has considerable potential to affect national policy development. It is expected that results will form an integral component of the government’s overview of policy and strategy. Therefore the work of this TA will be supported by a senior management steering committee functioning directly under the Minister of National Education and include local representation from the Asian Development Bank’s Indonesian Resident Mission. Liaison will be required with the education research and planning agencies of the Ministry of National Education and the Ministry of Religious Affairs.

20. The TA team will report to the Director of Planning in the Directorate General of Primary and Secondary Education (DGPSE). The main clients for the study will be this DG, the newly established Directorate General of Education Staff Development of the Indonesian Ministry of National Education, and to a lesser extent, the Ministry of Religious Affairs.

21. A team of nine international and eight national consultants, together with Indonesian counterparts from the Ministry of National Education and the Ministry of Religious Affairs, will conduct the four activities: (i) project evaluation; (ii) conduct research and evaluation on school effectiveness alternatives; (iii) conduct sub-sector analysis; (iv) determine strategic directions and policy options. International inputs include 55 person months and national inputs include 138 person months (see Table A8-1). In addition to the consultant person months are funds for the local hiring of research assistants in order to complete field surveys, particularly the proposed vocational tracer study. Also funds are provided to develop a dedicated web site for the TA. The indicative consultant mobilization schedule suggests that the TA commence in the 3rd quarter 2006 which may occur slightly before the official start of the loan project.

TABLE A8-1: INDICATIVE CONSULTANT SCHEDULE

Int'l Nt'lPM PM 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2008

72

Key Reports Regular Reports

12

12

I2/3 Education Research Consultants (2) 18

N1 Mission, Mid-term, BME/PCR Reporting/Team Leader

I1 Mid-term, BME, and PCR Consultant

36N2 Education Research Consultant

2010 2011 2012200920072006Pkg/ Post Position

TA Grant for Foundation for Education Policy and Strategy

Total Package D

I9 Policy Dialog and SSE Strategy Consultant 6

138

N8 Policy Dialog and SSE Strategy Consultant

55

I4

N3

I5/N4

I6/N5

Economist/Education Finance & Co-Team Leader

Economist/Education Finance Consultant

SMA Education Policy & Curriculum Analysis

SMK Education Policy & Curriculum Analysis 4 4

5

4

4 4

I7/N6 Organization and Management Consultant 4 4

I8/N7 Survey Design and Analysis Expert 2 2

Intermittent Full time

Appendix 8 85

22. The first two activities - project evaluation and research - are closely linked. There are two international and two national consultants assigned for this work with one of the national consultants assuming the overall team leadership role. The posts for the sub-sector analysis are shorter term with four international and four national consultants. Similarly, the consultancies for integrating the results of the first three activities into policy and strategy also include shorter term consulting support.

D. Cost Estimates

17. Table A8-2 provides an overview of the associated costs.

TABLE A8-2: COST ESTIMATES AND FINANCING PLAN ($)

Item ForeignExchange

Local Currency

TotalCost

A. Asian Development Bank Financing3 1. Consultants

a. Remuneration and Per Diem i. International consultants 1,360,000 1,360,000ii. National consultants 700,000 700,000

b. International and local travel 100,000 40,000 140,0002. Conferences and meetings 65,000 65,0003. Reports and communications 2,000 3,000 5,0004. Research Surveys, Miscellaneous Administration and Support Costs4

240,000 240,000

5. Training Monitors and Researchers including practical field applications

50,000 50,000

6. Vocational Graduate Tracer Studies 210,000 210,0007. Dedicated web site 35,000 110,000 145,0008. Contingencies @ 5% 74,000 70,000 144,000Subtotal (A) 1,571,000 1,488,000 3,059,000 B. Government financing 1. Remuneration and per diems of

counterpart staff and task forces 60,000

2. Office accommodation, furniture and equipment

10,000

3. Administrative support and translation services

15,000

4. Research surveys, project monitoring, training monitors4

230,000

5. Regional and National Forums 250,000 6. National Conference and Proceedings 100,000 7. Travel of counterpart staff 150,000

3 Financed by Asian Development Bank’s technical assistance funding program. Source: ADB estimates 4 Research and Surveys Include costs project evaluation monitoring (activity i), four special research studies (activity

ii) and four sub-sector analysis surveys (activity iii)

86 Appendix 8

8. Interpretation and translation 10,000 9. Contingencies @ 5% 41,000 Subtotal (B) 866,000 866,000Total 3,925,000

E. TORs for Consultants 1. Project Evaluation and Research - emphasis on activities (i) and (ii)

N1 Mission/Mid-Term, BME and PCR Reporting Team Leader – National (72 pm)

23. This position requires close coordination with the Loan Project’s Package A and B consulting teams. Much of the input data for the data for reports will be available from the systematic reporting required of schools and education service providers which is facilitated by Package B. The output from the evaluation of data will form the basis for reports required by the Package A consultant and the PMU. The tasks and expected outputs from this assignment are:

i. Establish working mechanisms with the compliance advisors (Package B) and the Project’s Compliance Monitoring Unit (PMU) to ensure that the required data for all project accountability reports is collected in an accurate and timely manner.

ii. Liaise with the Package B ICT consultant to provide a dedicated web site for schools, education service providers and monitors to submit data required for evaluation and research (costing for web site included in TA).

iii. Prepare the evaluation and research data for each ADB mission including the ADB Mid-Term and assist the international and national research consultant in reporting data analysis in a form that is easily understood by the PMU in both English and Indonesian languages and key MONE personnel responsible for project implementation and SSE development.

iv. Identify and report on issues and initiatives arising from NRS successes, difficulties, or innovations that will help other schools to implement new or enriched curriculum or school management and community liaison practices

v. Complete an evaluation of six special programs introduced by the project: (i) digital clearinghouse; (ii) association of national reference school professionals – in mathematics, English, and Physics; (iii) teacher resource centers; (iv) career planning, job readiness and job placement centers; (v) revenue generation and entrepreneurship; and (iv) school leadership program.

vi. In conjunction with the HRD consultants in Package B, develop mechanisms for measuring the effectiveness of training activities and institutionalize a cycle of helping schools determine staff and career development needs, formative and summative evaluation, and the refinement of the training content and provision.

vii. Assist in the design of the monitor training program with the international Mid Term Review, BME and PCR Consultant (I5). Responsible for organizing the training of monitors, assessing their suitability to act as monitors, and in coordination with the PMU for the funds required to gain the assistance of monitors in data collection.

viii. Arrange and deliver the results of project evaluation and research at the project annual coordination meeting or other presentations to MONE agencies.

Appendix 8 87

I1 Mid-Term Review, BME and PCR Consultant – International (24 pm with 4 visits)

24. This position is intermittent with a short input (2 months) in the middle of year two to assist in formulating report requirements, followed by inputs in all subsequent years (see A13-2, Consultant Schedule). The intensive input will commence six months prior to the requirement for the project to submit the GOI Mid-Term Review to the ADB prior to the Bank’s official mission. The position is responsible for preparing the Project BME report and the GOI Project Completion Report.

i. Prepare a baseline report on data provided by the school profiles as submitted by each project school in their initial School Development and Investment Proposal.

ii. Prepare three key reports – GOI Mid-Term Review; Project Benefit, Monitoring and Evaluation Report (focus on Project Purpose, Outputs and Outcomes) and the GOI Project Completion Report (PCR).

iii. Design the data formats to assess the overall achievement of benefits as well as the distribution of the benefits across the sets of beneficiaries, geographical regions, economic strata, gender etc.

iv. Liaise with Package A and B consultant team leaders to ensure compliance data is collected and recorded in a format the enable ease of analysis for overall project progress.

v. Design, in conjunction with the Education Research Consultants, the training program for government monitors (central, provincial and district). Pilot test the training program and train trainers to conduct the training on regional basis.

I2/3 Education Research Consultants – International (18 pm each for total 36 pm and 2 visits each)

25. This is the lead position in establishing the overall project research program, including studies and all surveys and data collection relative to assessing the contribution of the project to its purpose, outputs and outcomes. It is to be filled by two persons – one focused on SMA and the other on SMK. Both positions will liaise closely with the sub-sector analysis consultants.

26. Particular emphasis will be directed to assessing the contribution to three levels of beneficiaries – (i) primary - students, (ii) secondary - principals, teachers, school staff, school committee members, Government agency staff involved in project implementation (e.g. P3G, LPMP, etc.); and (iii) tertiary – government central, district and provincial staff involved in monitoring as well as those involved as policy and decision makers and 3rd party education service providers. The tasks and expected outputs include the following:

i. Plan, implement, support, analyze and report on school-based research focused on project interventions that enable a better understanding of models for school improvement suited to Indonesian SSE.

ii. Act as the primary supervisor of the parallel ADB TA (piggyback) for sub-sector analysis

iii. Design the indicators, questionnaires, methods of analysis, etc. for the evaluation of course content, teaching-learning methodologies and follow-up support after trainees return to their schools, as well as school management.

iv. Design the formats, the data collection tools and methods for each of the five (5) research studies included in the project.

88 Appendix 8

v. Coordinate the project administered testing regime (see Annex 1)

vi. Prepare and implement a project-administered testing regime at international standards to Class 2 and 3 students in years 1, 3 (pre Mid-Term Review) and 6 of project and 2 years after project completion. Supervise the implementation of the test. Analyze the results to provide information on learning achievement during and after the project.

N2 Education Research Consultant (36 pm)

27. This position is closely linked with that of the international positions (Note: only 1 post). The work includes an emphasis on vocational education. The work of this post and others involved in research will be linked to the inputs from those consultants involved in the sub-sector analysis as outlined below. Following are the tasks and expected outputs from the assignment.

i. Design, plan and implement a tracer study designed to track NRS graduate transition to higher education or to employment (Student Tracer Study).

ii. Assist in the implementation of the project administered testing regime (see Annex 1).

iii. Review and examine mechanisms by which SMK teaching programs will respond to changing needs and how the relevance of curriculum will be maintained and make practical recommendations for ongoing curriculum maintenance at international standards.

iv. Prepare a concept and facilitate discussion on establishing SSE schools that integrate academic and technical/vocational instruction within one SSE school in order that students can gain competencies that lead to higher education and also to the labor force.

v. Complete an evaluation of the scholarship program and the associated orientation and tutorial programs in the 2nd and 4th year of the project to ascertain its effectiveness and to provide guidelines to MONE for ongoing scholarship programs.

vi. Complete an evaluation of the School Leadership Program and provide recommend-ations for improvement and expansion. Study should be completed no later than the 4th year of the project.

2. Sub-sector Analysis - activity (iii)

28. The technical team for the sub-sector analysis will be comprised of the following experts: (1) economic/education finance who will act as a Co-Team Leader responsible for the sub-sector analysis activity; (2) general education policy/curriculum analyst; (3) technical/vocational specialist; and (4) organization and management specialist. A short term specialist will also be recruited for survey design and analysis. For each of these posts there will be one international and one national consultant.

29. The consultant will design sample surveys in the areas mentioned5 in conjunction with the activities of the research initiatives in the other positions outlined above. Local staff to carry out the surveys and will compile and analyze the results. Each of these surveys will be conducted in collaboration with the research scheduled via the other consultants within the overall team.

5 (i) a sample tracer study on graduates; (ii) survey on the socio-economic profile of students; and (iii) analysis of

learning outcomes of students; (iv) unit cost analysis at specific sample schools.

Appendix 8 89

I4/N3 Economist/Education Finance Consultant. (5 person months International and 4 months National. Intl - 2 visits)

30. The consultant will be responsible for assessing the economic relevance of the SSE system, and its costs and effectiveness. Specifically, the consultant will:

i. Identify education policies and the policy-making process, not only within MONE and MORA but also in relation to Parliament, Bappenas and regional (Provincial and District) agencies

ii. Identify the linkages between the policy processes and the budgeting processes, including projects and the role of Ministry of Finance as well as issues of decentralization

iii. Analyze economic trends for their implications on the labor market

iv. Analyze labor market trends

v. Identify the implications of labor market trends on quantitative and qualitative demands for graduates of SSE

vi. Analyze the regulatory framework for non-government provision of SSE

vii. Conduct sample survey of unit costs at school level

viii. Analyze the sources and uses of financing in SSE

ix. Analyze unit costs and their composition, particularly teacher salary structures, full-time equivalencies, and spending on teaching materials;

x. Evaluate policies on cost-recovery

xi. Analyse required investment and operating costs for improving various types of existing SSE to international standards

xii. Recommend policy changes, based on analysis of alternatives, to make SSE more relevant and efficient in use of resources.

31. The international post is also designated as Co-team leader. The individual, in addition to the substantive work in one of the areas described below, will be employed for an additional four weeks to carry out the following responsibilities:

• Coordinate the work of the other consultants, including establishing clear expectations on outputs expected. Liaise directly with the overall TA team leader and with the Loan Package A and B consultants.

• Organize dialogue with government authorities • Provide quality assurance for the outputs of the other consultants • Supervise, or write, the final report • Liaise with the ADB

I5/N4 SMA Education Policy and Curricula Analysis Expert. (4 person months each. Intl

- 2 visits)

32. The consultant will be responsible for assisting the economist/finance specialist in assessing the relevance and efficiency of the SMAs, and will be primarily responsible for assessing the content and quality of education in SMAs and recommending strategies for its improvement. More specifically, the consultant will:

i. Assess the legal and regulatory framework for SMAs

90 Appendix 8

ii. Participate in designing and evaluating the survey on learning achievements;

iii. Analyze incentives for and problems in the quality of instruction, quality assurance, professional support to schools

iv. Analyze the contents of the curriculum in terms of economic and academic demands on the outputs of SMAs

v. Analyze the appropriateness and quality of pre-service and in-service teacher training

vi. Analyze textbook selection procedures, the appropriateness and content of textbooks for academic objectives, and the incidence of availability and use of textbooks in the classrooms;

vii. Analyze formative and summative examination systems and procedures;

viii. Analyze government plans and programs for SMAs;

ix. Identify and analyze alternative models for school improvement

x. Based on the above analysis, recommend strategic and operational policies to make SMAs more relevant and effective, including broadening school quality improvement initiatives (scaling up).

I6/N5 SMK Technical-Vocational Education and Training Consultant. (4 person months each. Intl - 2 visits)

33. The consultant will be responsible for assisting the economist/finance specialist in assessing the relevance and efficiency of the SMKs, and will be primarily responsible for assessing the content and quality of education in SMKs and recommending strategies for its improvement. More specifically, the consultant will:

i. Evaluate linkages between the outputs of SMK and the labor market, including employer involvement in establishing standards and certifying outputs

ii. Examine the extent to which curricula are based on national or other types of occupational standards

iii. Evaluate curricula against employer and labor market expectations, and the balance between academic and practical work in view of future expectations on graduates

iv. Evaluate the extent of competency-based training

v. Evaluate the system of trainee graduate evaluation and certification, including the role of employers

vi. Analyze the results of the tracer studies, and draw implications

vii. Analyze the results of the study on socio-economic background of students

viii. Analyze the survey on student/trainee achievement and draw implications for changes needed

ix. Collaborate with the experts on education finance and organization and management in their reviews of SMKs.

x. Analyze government plans and programs for SMKs;

xi. Identify and analyze alternative models for SMK school improvement

Appendix 8 91

xii. Based on the above analysis, recommend policy changes and solutions, based on analysis of alternatives, to make SMKs more relevant and effective, including broadening school quality improvement initiatives (scaling up).

I7/N6 Organization and Management Consultant. (4 person months each. International

with 2 visits)

34. The consultant will be responsible for assessing the management effectiveness of SSE. More specifically, the consultant will:

i. Assess the legal and regulatory framework for SSE

ii. Analyze the structure of the SSE system in terms of its articulation with other levels of the system

iii. Analyze the structure of educational administration at national, provincial, district and school levels, the extent to which roles and functions are clearly specified and followed;

iv. Analyze the procedures and systems used for delivery of educational services at SSE level;

v. Analyze the resources (financial and human) currently used for delivery of education and training services in SMA and SMK at all levels;

vi. Analyze school-based management and, together with the education policy consultant, the provision of administrative and professional support to schools;

vii. Based on the above analysis, identify the key problems and issues involved in organization, management and delivery of SSE, including their dimensions, causes and consequences.

viii. Propose and evaluate alternative solutions to the key problems and issues, and recommend a strategy for overcoming them (objectives, means and steps.)

I8/N7 Survey Design and Analysis Expert. (2 months for international and 4 person months national support via 2 positions each of 2 months – one SMA and one SMK). The survey work will be enabled through the provision of funds for the hiring of local researchers.

3. Foundation for Policy and Strategy – activity (iv)

I9 Policy Dialog and SSE Strategy Consultant – International (6 pm and 2 visits)

35. This, and the national post (N20), are two positions that should be deployed at the same time. They should be mobilized to overlap with the final month of the parallel ADB TA for Sub-sector analysis (Appendix 8). The international consultant will assume responsibility for continuing the process of socializing the results of the TA with particular emphasis on enabling dialog among key decision makers in MONE and among provincial and district officials.

i. Review working papers prepared by the parallel TA and develop discussion topics for regional and national forums.

ii. Prepare a guideline for MONE on the policy development process.

iii. Facilitate discussion forums, particularly those with representatives from MONE, universities, SSE related organizations, and NGOs.

iv. Prepare proceedings from the various forum and other discussions as a position paper for MONE’s ongoing process of policy and strategy development.

92 Appendix 8

v. Liaise with the TA Steering Committee to link project outputs with ongoing MONE policy and strategy development.

N8 Policy Dialog and SSE Strategy Consultant – National (12 pm)

36. The terms of reference for this post are similar as the international consultant except the individual is responsible for a particular focus on technical-vocational education in addition to supporting overall SSE development. The incumbent also will be responsible for preparing synopses of workshops and discussion groups in Bahasa Indonesia and to assist in translation and interpretation where required. The individual will be responsible for leading discussions in the provincial and regional dialog meetings whereas the international consultant will be responsible for such facilitating primarily (but not solely) in Jakarta.

i. Assist the international consultant (I8) to facilitate discussion on SSE policy and strategy with particular emphasis on enabling broad community, organization, and government input.

ii. Review working papers prepared by the parallel TA and develop discussion topics for regional and national forums.

iii. Prepare a working paper on technical-vocational education based on the output of the TA, other relevant documents and project outputs.

iv. Conduct discussion forums with DTVE and with business and industry to review directions in technical-vocational education and prepare proceedings from these various forums.

Appendix 8 93

ANNEX 1 Approaches to Testing

1. There are 2 types of testing which will be used in measuring performance indicators of increased quantity and quality of students and improved student learning outcomes: (i) testing for international certification; (ii) project-administered testing at international standards.

Testing for international certification

2. These tests are part of the international certification process. They are designed and administered by the international certifying agency under the agency’s own rules and procedures. The international certifying agency charges fees for the testing process.

3. Each NRS will choose which international certifying agency It wishes to use and which (how many) students will sit for the international certification testing.

Project-administered testing at international standards

4. Indonesia is a member of the PISA (OECD) international testing regime. PISA tests are administered at regular intervals. The questions are provided by the PISA organization and then translated into Indonesian language and administered to a sample of students selected under PISA sampling rules. Scoring follows PISA rules. Results are reported at the national level and are comparable across national boundaries.

5. The MONE National Testing Center will provide the project with the latest version of the PISA test, after that version has been used in the PISA testing regime. The answer keys and scoring rules will also be provided.

6. The project will administer and score the PISA test to selected samples of students.

7. Analysis will consist of comparing the NRS student results to the Indonesian national results and to international results reported in the PISA study reports.

National Exit Examination

8. The national exit examination is unsuitable as a mechanism for measuring performance indicators of increased quantity and quality of students and improved student learning outcomes for several reasons.

9. The tests are not comparable over time because they are not standardized. Each year’s tests are “tried out” for validity and reliability but they are not standardized.

10. Since candidate NRS are chosen from among highly successful SSE, they already have superior performance on the national exit examination (because this is one criterion for selection as candidate NRS). Therefore substantially improved performance on the national exit examination is logically impossible, either in absolute terms or relative to other SSE.

94 Appendix 9

Appendix 9 95

96 Appendix 10

MANAGEMENT CAPABILITY OF EXECUTING AGENCY AND PROJECT ORGANIZATION

1. The proposed executing agency will be the Directorate General of Primary and Secondary Education (DGPSE). The key directorates to be involved in project management and implementation are the Directorate of General Senior Secondary Education (DGS) and the Directorate of Technical and Vocational Education (DTVE). The DGPSE has implement a range of ADB projects, among them the Junior Secondary Education (approved Nov. 1992), Private Junior Secondary Education (July 1995), Basic Education (June 1996), and now ongoing, the Decentralized Basic Education Project.

2. DTVE has implemented ADB projects since 1978. Among these projects are Vocational Education (approved June 1982), Second Vocational Education (Sept. 1989), Agricultural Technology Schools (Nov. 1990), Technical Education Development (Sept. 1991), and Vocational and Technical Education (Sept. 1994).

3. From the partial list of ADB projects implemented by both executing agencies, there is adequate experience in the financial management of project implementation. Project staff attended ADB sponsored training on project financial management such as loan withdrawal and disbursement procedures, imprest fund procedures, reimbursement regulations, and financial reporting. There has also been a transfer of knowledge from the consultants, both international and domestic, assigned to the project implementation units of the various projects.

4. Based on evaluation reports, the performance of the borrower and executing agency were rated satisfactory, except for one which received a rating of partly satisfactory (Private Junior Secondary Education). The Government was unable to address effectively the issue of competition between the public and private sectors, resulting in non-achievement of key project targets, particularly in the area of student enrollment. However, this was a policy issue and was not a reflection of the implementation capability of the executing agency.

5. Also mentioned is the need for more effective monitoring and evaluation processes and the need for continuity of the management of the project. It is felt that more time should be devoted to delivering Project inputs and less time devoted to site monitoring, impact analysis and quality assurance of Project outputs. Continuity is affected when project personnel are replaced or reassigned.

6. These were some of the conclusions made in available reports on Project Performance Audit (PPA) and Project Completion (PCR) of selected projects.1 These observations should be part of lessons learned from the implementation of previous projects and incorporated into this project for more effective project management.

7. However, in the final analysis, the performance of the PMU is dependent on the appointment of capable and dedicated personnel. The selection process therefore has to be made strictly based on qualifications and aptitudes of the PMU staff. This is especially true for the positions of Project Manager and two Deputy Project Managers as proposed in the organization chart for project implementation.

8. A key aspect of overall project management is the use of Project Steering Committees. The DGPSE takes the issue of steering committees seriously and each project is assigned such a committee and reports to the Director General occur on a quarterly basis. Annually, the Director General hosts a coordination meeting among all project managers and key staff to

1 PPA:INO 20185 (Agricultural Technology Schools); PPA:INO 24332 (Junior Secondary Education); PCR:INO

27005 (Private Junior Secondary Education); and PCR:INO 23077 (Senior Secondary Education Project)

Appendix 10 97

review individual project progress and enable sharing of project initiatives that are applicable in other jurisdictions. Following as Figure A10-1 is an outline of the organization for project implementation. A Project Coordination Unit will facilitate two implementation units, one for SMA and the other for SMK schools.

FIGURE A10-1: PROJECT MANAGEMENT UNIT ORGANIZATION

Finance Information Support and Electronic Data Processing Unit

Monitoring and Evaluation and Digital Clearinghouse Unit Project Coordination

Unit

Project Implementation

Unit SMK (PIU)

Project Implementation

Unit SMA (PIU)

Student Support Services Unit

Human Resources Development Unit

Financial Information Support

Unit

Monitoring and Evaluation Support Unit

Administrative/Operational Support and Electronic Data

Processing Unit

Student Support Services Unit

Human Resources Development Unit

Financial Information Support

Unit

Monitoring and Evaluation Support Unit

Administrative/Operational Support and Electronic Data

Processing Unit

TABLE A10-2 PROJECT ORGANIZATION

PSC – Project Steering Committee PCU – Project Coordination Committee DTVE – Directorate Technical & Vocational Education DGS – Directorate General Secondary Education PPPG – Teacher Training Center (Academic/ Vocational) LPMP – Provincial Quality Assurance Institute

ADB BAPPENAS MOF, MONE PSC

Evaluation/ Research TA

Legend: Structural Link – Reporting & Supervision Consultancy Contractual & Reporting Link Operational Link/Reporting activity progress Operational Link: Quality Assurance/Monitors Evaluation & Research including Compliance

District Office

Provincial Office

Voc-PPPG

LPMP

DTVE DGS

PIU-VSE PIU-GSE

SMK SMA Acad-PPPG

LPMP

PCU

98 Appendix 10

Appendix 11 99

SCHOOL STATE OF READINESS AND CHARACTERISTICS OF SCHOOL AT INTERNATIONAL STANDARDS

A. Introduction 1. For schools to take full advantage of project interventions there is a critical need for strong leadership to enable and sustain changes. Leadership is not the sole mandate of the principal. It involves all members of the school and the community – school stakeholders. They must have a shared vision and strategic plan for overall school development. Schools need to set up a School Change Team which assumes a lead role in planning for school effectiveness programs including those funded by the project.

2. The school’s vision should express the core educational values of the school. The strategic planning process should be participatory and it should lay the foundation for sustaining school improvement to ensure the school moves toward achieving real benefits for students.

3. There are a number of conditions that a school needs to achieve to demonstrate that it is ready to receive funds from the proposed loan. Although some of these required changes cannot occur overnight, schools will have to demonstrate that they have the capacity and commitment to change to receive ongoing project support.

4. Prior to reviewing key conditions, it is essential to recognize that enabling school improvement requires additional time and energy commitments by all school personnel. Typically, many school staff need to secure other jobs to ensure they have adequate funds for their family welfare. This means their availability and level of commitment will need to be addressed, and this is not a simple problem. It is important to acknowledge that some balance between accessing ‘outside’ versus accessing ‘inside’ income, or even sacrificing income for future benefits, will have to be found. Each school will address this key issue based on their own unique circumstances. Project planners and implementers have to be cognizant of this issue and be somewhat tolerant of the range of approaches that will emerge among the different schools providing they meet project guidelines.

B State of Readiness Compliance (SRC) Stages 5. There will be three stages for schools to comply with the expectations of the project’s state of readiness requirements. The first will be part of the overall eligibility for a school to be designated as a project school. The process will assist in selecting schools that best respond to the requirements as stipulated below. Schools will be assessed initially on their demonstrated commitment and their apparent capacity to be a school that can be a reference for others to emulate. The first stage of compliance, therefore, involves the selection of suitable schools. Many of the schools will be formally accepted prior to loan negotiations (see Appendix 7). Note: A condition of eligibility to be considered as a potential project school is the requirement that the school must already by designated by the National Accreditation Board as an “A-level” school.

6. The second stage of SRC will extend to project commencement (expected in 2006). At this time, all of the designated project schools must have submitted a Compliance Report on their implementation of each of the conditions outlined below. Integral to this report is the submission of a school development and investment plan that has been endorsed by the district education office.

7. The third stage of SRC will be the verification stage which will be tied to collecting baseline data. Project teams, supported by consultants, will complete an assessment of each school to determine their real state of readiness to review their Compliance Report. The amount of block grant funding will be dependent on the extent to which schools have complied

100 Appendix 11

with state of readiness requirements. These third stage assessments will be conducted during the first 3 months of project implementation.

8. Following are the key conditions that schools will be expected to achieve in order to be designated as project beneficiary schools:

C. Strategic Planning Process - required 9. The school must prepare a school development plan which includes indicative investment estimates – school development proposal and school investment proposal (SDIP). This plan must have a whole school development focus and evolve from communications among all school stakeholders. These proposals will assist project planners to identify priorities and expected costing. It will also provide evidence that the school has engaged all members of its school community in ongoing in-school and school-community dialogue on school improvement.

10. Included in the SDIP is the requirement that schools submit a staff development plan and an information communication technology plan. The staff development plan should be linked to a career development strategy for all school staff. The ICT plan should be linked to the teaching-learning and school management processes.

11. Also included in the SDIP is the requirement that each NRS will be required to make public its admissions policy, selection criteria and procedures and its structure of fees and other required parental contributions. These will be published and readily available on request to prospective candidates for admission.

D. School Accountability Contract - required 12. Schools will be obliged to prepare an annual accountability contract as part of their school planning process (SDIP). This will be based on a standard format prepared by the project. The accountability contract will be closely linked to the school’s development plan targets and include information relative to project physical and financial achievement forecasts as well as broad school benefits. Included will be evidence of the school’s use of project interventions and demonstrated commitment to disseminating experiences from the project to non-project schools.

13. As a condition of continued NRS status, it is expected that schools will adopt the principles of transparency and accountability, wider access etc. and amend their admissions policies and practices. Admissions practices will be a major focus of project monitoring. Practices will be assessed for compliance with the schools’ stated policies and the outcomes of these practices will be evaluated in the light of the principles. The NRS accountability contract will have a specific section recognizing achievements relative to admissions.

E. Good Governance and Zero Tolerance for Corrupt Practices - required 14. Schools must sign a commitment to good governance and full disclosure of all data and information relative to its operations and its personnel. This strategy is supported by procedures that enable stakeholders to determine inputs, assess outputs, and scrutinize accounts as part of a school-wide effort at broad public accountability as well as guidelines for non-compliance and/or corrupt practices.

F. Demonstrated Access to Key Data and Information - required 15. Project funding is designed to enable school improvement programs. In order to determine whether the funding is beneficial, particularly since the funds are focused on the entire school community, there is a need for comprehensive historical and current data. This

Appendix 11 101

requires the school to establish a Management Information and Reporting System (MIRS) that relies on an easily accessible database along with dedicated support staff and adequate resources. It also requires all data to be entered into the system. Schools must commit to all aspects of this overall data management process and to provide accurate and current data.

G. Baseline Data - required 16. Integral to the provision of accurate, comprehensive (historical) and current data is essential for the project to create meaningful data which can be used as a baseline for assessing project contributions and school change. Schools will be required to commit to the provision of all baseline data requirements within TWO months of project commencement. Ongoing block grant funding will not be released to those schools that fail to comply with this requirement.

H. Operational School Finance and Accounting Practices - required 17. Schools must have an established team of administrative support staff who are familiar with accounting and reporting procedures. As part of project preparation, schools must commit that such staff are available and provide them the time and resources to do the tasks required. Resources include computers, training, and the application of procedures consistent with sound financial and accounting practices.

18. Schools must also agree to establish a Trust Account and follow the guidelines established for its use. All block grant funds will be directed through the Trust Account which requires detailed reporting in order to enable in-school and overall public scrutiny of the use of funds. The schools must also agree that their School Accounting and Finance Information System (AFIS) will include data on all school financing including those via the trust account.

I. School Financial Overview Statement - required 19. The process of a school being approved as a project beneficiary requires a detailed school profile to determine the baseline from which the school will be assessed as a result of project interventions. One key baseline indicator is the overall financial condition of the school. Each school, as part of the state of readiness review, will be required to provide a detailed statement on school finances for the year 2004-2005 in a format prepared by the project. This form will be an integral part of the contract signed by the key parties. It will identify all sources of income and review expenditures to determine the financial base for the school’s operation in the preceding year.

20. Block grant allocations are based on the school development and investment proposal. Schools must agree to raising external funds as well as using project funding. Failure to raise investment from other sources will result in lower block grant allocations. Schools must be proactive in securing the external funds included in their investment plans in order that the level of interventions can be sustained upon completion of the project.

J. Leadership Certification – required but during first 3 years of project 21. The Principal and at least two other school personnel will be required to complete the first two modules of the leadership certification program offered by the project. These modules will link directly with the School Leadership and Management Certificate Program which is a component of the main loan program.

K. Teacher English Language Competence – required but during first 3 years 22. Teachers in both SMA and SMK will interact with international twinning partners and the language of exchange will likely be English. Also, if schools intend to work toward their

102 Appendix 11

curriculum being accredited by an overseas organization, then these courses will have to be taught either totally in English or in some bilingual format. Schools will be obliged to identify those teachers who are candidates to teach in these courses and programs and these individuals must be tested. Those who do not achieve the required status must be registered in an intensive English Language Program. Upon commencement of the block grant, schools will be able to send these teachers to the Project’s English Language program.

L. Professional Staff ICT Competence – required but during first 3 years 23. All school staff, particularly teachers and administrative personnel must demonstrate competence in ICT. The teacher and school leadership certificate programs required participants to achieve pre-established competence levels for English and ICT. Schools will be required to demonstrate a strong commitment to enabling all staff to achieve these competency levels.

M. Teacher Resource Center (TRC) – Optional but strongly recommended 24. Principals, teachers and others are interested in getting access to new information that will assist them in their roles. In support of the concept of a learning community, schools must demonstrate their commitment to the teaching staff. Teachers require a space that is dedicated to them where they can prepare lessons, secure information from other sources, and exchange information with colleagues. One mechanism to accomplish this is to create a Teacher Resource Centre (TRC) that is a designated space for teachers. It must be equipped with computers and hard copy materials in support of the teaching-learning process. The intent is for schools to demonstrate a serious commitment to enable teachers secure information and skills to strengthen and expand their capacities.

N. Commitment to Organizational Learning/Culture - expected 25. Achieving substantive changes within a school and moving all aspects of a school to the highest levels of organizational performance requires a new approach to organizational and personal learning. Organizational learning deals with continuous quality improvement of existing approaches and adaptation to change. Personal learning deals with ensuring that every employee is recognized and supported in their career and professional improvement.

26. Schools must demonstrate a commitment to apply quality management principles in support of a continuous improvement program. Schools will be provided with an outline of the conditions dictating the application of such a system and their endorsement and commitment to the application of the principles is an integral part of demonstrating compliance. This commitment will occur with the completion of the project input relative to school quality improvement programs (ISO in SMK schools and school-based system with SMA schools) (see Output 2 and Consulting Package C, Appendix 13).

J. Dissemination and Diffusion of Good Practices - expected 27. The proposed project will provide selected schools with new examples of how best to support the teaching-learning process and how to manage schools including school-community liaison. Proposed project schools must demonstrate a real commitment to ‘non-project’ schools. This means they must enable other schools’ access to materials, ideas, and suggestions, particularly through the vehicle of the local teacher organizations (MGMP). Project schools must agree to show clear evidence of this commitment through in-school audits during the project. These audits will dictate the amount of future amounts of block grant funds.

Appendix 11 103

K. International Standards 28. The Ministry of National Education is presently reviewing the scope and definition of a school at international standards. Following as Table 1, is a list of characteristics gleaned from various MONE documents and meetings. These serve as an indication of the direction expected in the rules and regulations to be issued sometime during the following year.

TABLE 1

CHARACTERISTICS OF SCHOOL AT INTERNATIONAL STANDARDS

A. Organization for Student Learning 1. School Purpose Purpose defined with expected learning outputs. 2. Governance Policies clearly articulated with delegated responsibilities clear. 3. School Leadership On completion, all graduates meet all graduate requirements

including graduation certificate recognized nationally and internationally. Such recognition includes business, industry or employees organization accreditation of school certification.

4. Staff All staff are qualified, have clear responsibilities, are committed full time and actively engaged in professional development. Such professional development will be formalized under a new MONE structure supportive to career development for all education staff (new Directorate General for Education Staff Improvement.

5. School Environment School has safe and clean environment with caring, trusting and respectful relationships among all school personnel, students and the school’s community representation (including alumni).

6. Reporting Student Progress

Continuous student assessment with supportive improvement process and programs.

7. School Improvement Process

School annual development plan ensures learning for all, has broad involvement, guides work to be accomplished, and provides for accountability.

B. Curriculum and Instruction 1. What students learn School provides a challenging, coherent and relevant curriculum.

Technical and vocational curriculum directly linked to business and industry requirements which require flexible programming.

2. How students learn Teachers design and implement a variety of learning experiences that actively engage students at high levels of learning.

3. How assessment is used

Assessments are frequent and integrated into the teaching- learning process with progress measured re: expected school-wide learning results.

4. How assessments enable improvements

Regular evaluations and improvement of curriculum and instruction and resource reallocation result from assessments. School engaged in continuous curriculum enrichment program.

C. Support for Student Personal and Academic Growth 1. Student Students have support services, co-curricular programs and

104 Appendix 11

connectedness community participation and placements. Students need to participate in life skills programs and develop problem solving and decision-making capabilities. Strong emphasis on ICT and English.

2. Parent/community involvement

School adopts strategies to involve parents, community, business and industry as integral to school development.

3. Student scholarships Students who are disadvantaged supported by scholarship and other support programs.

D. Resource Management and Development 1. Resources School has sufficient resources to support all aspects of

achieving expected school-wide learning results. 2. Resource planning School leadership applies long term planning strategies and

ensures broad school participation in design and evaluation of achievements.

3. District partnership Schools work closely with district officials within the education sector as well as planning units and legislative organizations to ensure appreciation of the cost of education.

4. International twinning partnerships

Schools embark on international linkages that will foster continuous understanding of evolving international standards. Formal twinning established wherever possible and such twinning should involve school staff and student exchange programs.

E. Standards-based Student Learning - Curriculum 1. Students participate in a challenging, rigorous, relevant and coherent standards-based

curriculum (what is taught and how it is taught) that supports the achievement of the academic and technical standards and expected school-wide learning results

2. Teachers use a variety of strategies and resources, including technology and experiences beyond the textbook and classroom, that actively engage students, emphasize higher order thinking skills, and help them succeed at high levels

3. Students have access to a personal learning plan to prepare them for the pursuit of their academic, vocational, personal and school-to-career goals

4. Upon completion, students will be able to meet all the requirements of graduation. Strong emphasis in technical/vocational programs on student job placement (internship) as part of instructional program and formal job placement upon graduation.

F. Standards-based Student Learning – Assessment and Accountability 1. Teachers employ a variety of strategies to evaluate student learning and assessment

results used to enhance the educational progress of every student.

2. All stakeholders regularly review student progress toward achievement of the educational standards and the expected school-wide learning results.

3. Assessment of student achievement relative to the academic standards and the expected school-wide learning results dictates resource allocation.

G. Support for Student Personal and Academic Growth 1. All students receive appropriate support to help ensure academic success.

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2. Students have access to a system of personal support services, activities and opportunities at the school and in the broad community.

H. Culture 1. School is a safe, clean and orderly place that nurtures learning. The culture of the school

is characterized by trust, professionalism, high expectations for all students, and a focus on continuous school improvement.

2. School practices provide clear evidence of anti fraud and good governance. Financial practices provide for public disclosure to build trust within outside the school community.

I. Leadership and Staff 1. Based on student achievement data, the school leadership and staff make decisions and

initiate activities that focus on all students achieving the expected school-wide learning results and academic standards.

2. A qualified staff facilitates achievement of the academic standards and the expected school-wide learning results through a system of preparation, induction and ongoing professional development.

3. Leadership and staff are involved in ongoing professional development that focuses on identified student learning needs. Principals, vice-principals and aspiring school leaders complete a formal certificate program. Possible licensing of principals will be considered as part of career development strategies.

4. School leadership employs a wide range of strategies to encourage parental and community involvement with particular emphasis on alumni and local and regional business and industry.

J. Vision and Purpose 1. School has a clearly stated vision or purpose based on its student needs, current

educational research and the belief that all students can achieve at high levels.

2. The expected school-wide learning results stress the expected academic standards and vocational and technical competencies.

3. School has an established school development planning process that provides for medium and long term strategies including expected investment requirements.

4. Financial self-reliance is a critical aspect of school development.

106 Appendix 12

Appendix 13 107

TERMS OF REFERENCE FOR INTERNATIONALLY TENDERED CONSULTING SERVICES

1. There are 4 international and 18 national consultant posts to be recruited for the project for a total of 84 international and 772 national person months. The national complement is based on 592 consultant months and 180 advisor months. The latter posts are designed to enable individuals who are either existing or recently retired school practitioners (as compared with individuals who have consulting experience) to assume key support roles. Some of the national positions will be filled by more than one person in order to support schools distributed over a large geographical area.

2. The consultancies are divided into three packages. Package A provides a project management, coordination and accountability function and also includes special support for the merit student admissions program. It is a key package in enabling the CPCU to manage the project consistent with GOI and ADB requirements. It also has a role in monitoring and assessing the contribution of the other three consultancy packages and enabling the CPCU in meeting its responsibilities to the Project Steering Committee and the ADB.

3. The two other packages have different areas of focus. Package B – education planning, management and compliance - has a school focus but within the context of ensuring project management and implementation practices are supportive to NRS development. Package C – school quality assurance - is primarily focused at the school level. There are additional consultancy services for evaluation and research in the parallel ADB technical Assistance grant (see Appendix 8) which is essentially an independent initiative aimed at project, school and system. Table A13-1 provides a review of positions according to core loan project packages and the allocation of person months. Six positions are full time for the duration of the Project, thereby providing valuable support and continuity to the Project Management Unit (CPCU) and the Project Steering Committee.

Table A13-1: Consultant Requirements

Person Months

Consultant International Consultant

National Consultant

National Advisor

Project Management, Coordination and Accountability 36 72 Student Admissions Policy and Procedures Specialist 24 Education Planning, Management & Compliance - SMA 72 Education Planning, Management & Compliance - SMK 72 School Development Plan Compliance – Activities 70 School Development Plan Compliance – Finance 70 ICT Strategy for SDIPs/Digital Clearinghouse 40 HRD and Training Management Consultant 72 HRD and Training Management Advisor - SMA 36 HRD and Training Management Advisor - SMK 36 Quality Management Trainer – SMA and SMK/TL 40 Quality Management – SMA Schools 24 Education Standards and Performance Audit – SMA (3) 12 30 72 Education Standards and Performance Audit – SMK (2) 12 30 36

TOTAL 84 592 180

108 Appendix 13

4. All Consultant Packages have national team leaders with Packages A and B having consultants for the full 6 years of the project. Although the Package C team leader post is for only 40 months, it is full time commencing prior to the end of the second year of the project and terminating shortly prior to project closure. It should be noted that the parallel ADB TA grant also has one post that is for 72 person months and therefore for the full project duration. Table A13-2 illustrates the schedule of consultant mobilization and deployment and Table A13-3 provides a summary list of consultants by international and national. Table A13-4 is a list of required outputs along with the assigned prime responsibility to the consultant team. Table A13-5 provides an indication of the implementation of the procurement packages related to the development of training courses.

5. The establishment of national team leaders is designed to provide the CPCU with a professional project management and implementation team. In reality, government staff who are assigned to the CPCU have far too many structural job responsibilities to manage the heavy responsibilities attached to a project such as this Second Senior Secondary Education Project. For this reason, the consultant assignments are designed to create for the CPCU a team of 5 lead national consultants who form the nucleus of a professional project management and implementation team. These individuals each report to the CPCU which acts more as an operational steering committee while holding these consultants accountable for effective project management. Consultants will not have any signing authority relative to any aspect of the project.

6. The “Professional Project Management and Implementation Team - PPMIT” that reports to the Project Steering Committee includes the following five (5) positions – Package A: Project Management, Coordination and Accountability (N1); Package B: Education Planning, School Management and Compliance SMA and SMK (N2 and N3), and Human Resources Development and Training Management (N7); and ADB TA Grant: Mission, Mid-Term, BME and PCR Reporting Consultant.

7. All consultants will work under the general direction of the Ministry assigned project manager and the PPMIT. Many of the consultancy assignments require collaboration between the consultant team and specific sub-units within the Project Management Unit. The organizational structure in the CPCU (Appendix 10) provides for separate functional units that parallel each consultancy (e.g. School Development Planning, Evaluation and Research).

8. All consultants will have responsibilities for workshop and seminar presentations, and responsibility for reporting under guidance from their respective team leader and to assume other duties as determined by the team leader in conjunction with the project manager.

Package A: Project Management, Coordination and Accountability

I1 International Project Coordination and Accountability (36 pm) N1 National Project Management, Coordination and Accountability Consultant and Team Leader (72 pm) 9. These two positions are essential for project management support. The national team leader post covers the full duration of the project and the international post is staggered over the duration of the project but is at 50% of the person month allocation. The consultants will provide the CPCU with relatively constant project management and coordination support. Following is an outline of the shared tasks:

Appendix 13 109

(i) Develop detailed guidelines for implementing overall project activities in collaboration with the Project Director, the Project Manager, and the deputy managers for DTVE and DGS,

(ii) Responsible for planning consultant deployments, finalizing terms of reference and reporting to project steering committee on overall consultant accountability. Establish and apply procedures to monitor consulting services including international tendered contracts and those provided through either procurement contracts or twinning arrangements. Review inception, mid-consultancy and final consultancy reports and develop and apply consultant performance evaluation process.

(iii) Review the working system of the CPCU and its associated implementation team and report on its overall efficiency and effectiveness. Include in the report an analysis of the positive and negative aspects of the structure and recommend improvements to ensure project targets are achieved.

(iv) Prepare the annual project report and assist the CPCU to prepare the Project Annual Work Plan submitted to the ADB for approval prior to receipt of Ministry of Finance approval for the annual budget. Include in this report the compliance with agreements and covenants

(v) Prepare CPCU quarterly and annual reports prior to submission to ADB to ensure comprehensive submission based on submissions from the other consulting packages. Included in this task is close liaison with the TA grant consultants in their preparation of the Mid-Term Review Report, the end of Project BME report and the Project Completion Report.

(vi) Responsible for liaison with ADB on progress and achievements of the overall project including consultancy input, contribution of education service providers, international twinning arrangements, and other key aspects of project technical assistance. Liaise with the TA grant consultants in the presentation of research findings as well as enabling discussion forums on policy and strategy.

(vii) Assist the CPCU to establish the Finance Information Support Unit (FISU) within the CPCU and to set up the accounting and finance control system to manage project finances consistent with GOI and ADB requirements. Assist the CPCU to arrange for the annual audit of the project account and ensure its submission to ADB in a timely and comprehensive manner.

N2 Student Admissions Policy and Procedures Specialist /SMA & SMK – National (24pm)

10. This position is a key post to provide operational guidance to the project in regards to student admissions policies including the assessment on the extent to which they are promoting greater equality of opportunity and enabling equitable access to the best schools. The individual will work in conjunction with N1, the National Project Management, Coordination and Accountability Consultant to provide feedback on the extent to which schools have adopted policies and practices in line with the agreed principles, that they have a serious commitment to openness and accountability and that their actual practices comply with their stated policies and procedures.

(i) Facilitate all NRS to review and establish their student admissions policies with particular guidance in regards to:

• The criteria for selection of entrants.

110 Appendix 13

• The desired gender balance overall and on particular programs. • The school’s fee structure and policy on fee waivers and relief. • The policy on discretionary transport and accommodation allowances. • Recruitment targets for economically and geographically disadvantage

students. • Links with JSE and outreach.

(ii) Provide guidance in regard to student support services particularly in regards to: • Fee waivers and transport/accommodation allowances • Conflicts and synergies with the national BKM scholarships program. • Support services that will be provided for orientation and preparatory

programs. • The nature, extent and timing of special welfare services for students.

(iii) Assist schools to make sure they comply with the requirements for disclosure and accountability by stressing the following:

• Means of making admissions processes and support services transparent and fair.

• The establishment of an appeals procedure. • Integration of the review of admissions and student support services

experience within the SDIP annual accountability contract. • Publicizing the identity of the school committee members responsible for

overseeing admissions.

Package B: Education Planning, School Management and Compliance

N3/4 Education Planning, School Management, Compliance/SMA & SMK – National (144 pm) Position shared between two persons with one being Team Leader.

11. This position is a key post to provide operational guidance to the project, but with an emphasis on school development planning, school-based management, implementation of project interventions, school accountability and monitoring block grant allocations. Given the fact that one post is for SMA and one for SMK, there is a need for considerable collaboration in the overall assignment, but within the context of the specific needs of the different directorates. The positions are responsible for the supervision of the Compliance Monitoring Unit within the CPCU relative to reporting of SMA and SMK schools. The assignment also has a development responsibility in that it the postings are accountable for the establishment of mechanisms to network and disseminate project interventions and outputs, particularly relative to the teaching-learning process. Following are the key tasks and expected outputs from this post:

(i) Assist the project director, project manager, and deputy project managers (DTVE and DGS) in the operational aspects of the project implementation as it relates to education planning, management and compliance. Assist in setting up key CPCU units such as the Monitoring and Evaluation Unit (M&EU); Electronic Data Processing Unit (EDPU); Digital Clearinghouse Unit (DCHU); Human Resources Development Unit (HRDU); Logistics Information Services Unit (LISU); and the Student Financial Support Unit (SFSU).

(ii) Manage the School Development Plan and Investment Proposal (SDIP) submission and revision process, including coordinating the assessment of each NRS Accountability Report and recommending the block grant allocation award for initial

Appendix 13 111

and succeeding years. Coordinate the contributions of other consultants in Package B to support the schools in the annual updating of their SDIPs. This assignment includes providing guidance to schools in the process of annually updating their plans to ensure that the targets are realistic and not unduly taxing on each school.

(iii) Liaise with the respective Directorates to manage the school development contracts in order to maximize the development and application of school-based management practices consistent with Education Law 20/2003 and MONE strategic plan priorities.

(iv) Design and implement a compliance monitoring system to monitor interventions,

activities, expected results and milestones including arranging for presentations on the results of monitoring to provincial or district initiated meetings or the project annual coordination meeting.

(v) Establish and implement project monitoring procedures to assess compliance in

physical target achievement and financial expenditure and management. Provide guidance to the CPCU on schools that are having difficulties (see Compliance Monitoring Framework and Compliance Technical Guidelines - “yellow flags”) and those that fail to adjust to guidance given (“red flags”).

(vi) Prepare a monthly report on SDIP activity and financial targets and achievements,

including statements on compliance with staff development targets and schedules and report any issues or problems.

(vii) Prepare the annual project report and assist the CPCU to prepare the Project Annual

Work Plan submitted to the ADB for approval prior to receipt of Ministry of Finance approval for the annual budget. Include in this report the compliance with agreements and covenants

(viii) Supervise the creation of the digital clearinghouse. Establish and apply procedures to

ensure that schools use the Clearinghouse to submit their monthly activity and financial compliance data. In addition, ensure the Clearinghouse provides a vehicle for teachers to share materials that will enable them to form into a professional learning community (priority to be given to English, Mathematics and Physics teachers).

N5 SDIP Compliance Monitor – Activity Tracking Consultant – National (70 pm)

12. This position is a key operational post linked to the CPCU’s Compliance Monitoring Unit and the CPCU’s Management Information Unit. It is also an important position relative to the outputs required by the TA grant consultants for evaluation and research. Compliance monitoring for this post deals with both school and project level monitoring (see Appendix 14).

(i) In conjunction with the Compliance Monitor – Finance Tracking Advisor (N6), develop mechanisms and reporting formats for each school to submit monthly data on project activities and achievements according to required specifications.

(ii) Participate in the pilot application of the School Management Information and

Reporting System (MIRS) and liaise with each school to ensure their understanding and application of the system.

112 Appendix 13

(iii) Assist the CPCU to review the block grant guidelines relative to the management and reporting of the achievement of project activities, particularly relative to each of the target beneficiaries.

(iv) Work with the Human Resources and Training Management Advisor to prepare a

detailed monthly report on all training conducted and achievement by individuals (by name, gender and position, type of school, etc.).

(v) Liaise with the TA grant Mid-term Review and BME consultants to ensure that data

required for these reports is collected quarterly, semi-annually and annually.

(vi) Assist the team leader to prepare a semi-annual and annual report on the compliance relative to actions outside of the project, but integral to its success. This includes compliance with agreements and covenants and also MOUs between MONE, district and provincial agencies

N6 SDIP Compliance Monitor – Finance Tracking Consultant – National (70 pm)

13. This position is a key operational post linked to the CPCU’s Compliance Monitoring Unit and the CPCU’s Finance Implementation Support Unit. The individual’s tasks and expected outputs are:

(i) In conjunction with the Compliance Monitor – Activity Tracking Advisor (N5), develop mechanisms and reporting formats for each school to submit monthly data on revenue and expenditures.

(ii) Participate in the pilot application of the School Management Information and

Reporting System (MIRS) and liaise with each school to ensure their understanding and application of the system.

(iii) Assist the CPCU to review the block grant guidelines relative to the management and

reporting of project funds. (iv) Provide guidance to principals in their preparation of monthly public disclosure on the

use of the Trust Account. (v) Prepare a monthly report on each school’s use of the Trust Account and submit it to

the Team Leader for incorporation into monthly, quarterly and annual reporting.

(vi) Provide data on the amount of scholarship funds disbursed as part of the monthly report.

N7 SDIP ICT & Digital Clearinghouse Management Consultant – National (40 pm)

14. This position is integral to the project’s contribution to the introduction of ICT in both the teaching-learning process and also in school management. The individual’s tasks and expected outputs are:

(i) Assist in assessing School Development Plans and Investment Proposals to ensure that each school includes support for the development of its ICT Strategy.

(ii) Supervise the procurement contract for the design and development of a Digital

Clearinghouse.

Appendix 13 113

(iii) Establish procedures and systems to use the Digital Clearinghouse as the portal for

schools to report monthly data required for compliance monitoring and link with the HRD/Training consultants to ensure services are suited to their needs.

(iv) Assist in the design and layout of teaching and learning materials to be produced by

schools to improve their impact, readability, and effectiveness. (v) Organize an on-line networking system for principals and teachers whereby ideas,

lesson plans, teaching materials, examples of good practice, and difficulties can be shared

(vi) Prepare the socialization of the Teacher Resource Center and be responsible for

assisting schools to establish such a center including all the required hardware, software and internet services.

(vii) Prepare training materials to introduce teachers to the use of computers as a tool for improving their state of readiness for student-centered learning and as a mechanism for accessing instructional materials (self-help program).

N8 HRD/Training Management Consultant – National (72 pm)

15. This position and the parallel advisor positions (N9/N10) provide key support for the project’s approach to training and human resource development. Rather than outsourcing training, the majority of training will be designed and pilot tested prior to being authorized by the project as suited to school needs. The specific curriculum for each course will be combined into modules that will then be posted in the Project Training Catalog and advertised for schools to participate as they deem necessary. Schools will register for these courses through approved service providers to ensure that courses delivered are consistent regardless of where they are offered. Each course will also have a list of accredited trainers who will have completed TOT training and who know what the course is intended to achieve and what materials are to be used. The individual’s tasks and expected outputs are:

(i) Responsible, with the team leader, for the terms of reference for the procurement packages to prepare short term training and monitoring the work accomplished, including assisting in arranging pilot testing and TOT for each course (Note: does not include School Leadership and Teacher Certificate courses assigned to MONE regional training centers – P3G).

(ii) Responsible for the preparation of the Training Catalog and for coordinating the

schedule of training activities to be delivered regionally and nationally with each service provider.

(iii) Assist service providers to organize and conduct their pilot testing of modules

developed including selecting candidates for the TOT training activities associated with this pilot testing. Based on consultations with the service delivers and course participants determine individuals who will be accredited as trainers and designated in the Training Catalog as accredited as specific course instructors.

(iv) Liaise with the Package A and also ADB TA Grant consultants to ensure schools and

education service providers provide the data for accurate reporting of staff development activities and the contribution to beneficiaries. Also, assist Package A and also ADB TA Grant consultants conduct evaluation surveys of participants

114 Appendix 13

involved in the training activities and also in follow-up surveys to determine the benefits of training taken.

(v) Assist P3Gs in managing international fellowships and in-country training. Responsible

for consolidating P3G reports on the core certificate programs (School Leadership and Teacher Training).

(vi) Responsible for integrating the Personnel Management System, developed through a

third party contract, with each NRS in order that schools include in their SDIP a career development program for each school employee.

N9/N10 HRD/Training Management Advisor – National (72 pm)

16. These positions are linked with the HRD Consultant (N8). There is one post focused on SMA and the other on SMK national reference schools. Each of them is for 36 person months. Specific responsibilities are:

(i) Responsible for all visa and passport arrangements to support overseas fellowships provided as part of the P3G international twinning arrangements or other similar overseas placements.

(ii) Assist in liaison with service providers who are awarded the preparation of specific

courses and assist in the preparation of the Annual Training Catalog including the maintenance of a master list of authorized service providers and accredited trainers.

(iii) Responsible for the master records of all beneficiaries from project funded training

including records of name, gender, course/course code, number of days of training, and status of completion (success/fail).

(iv) Responsible for liaison with the MIRS unit within the CPCU to produce quarterly, semi-

annual and annual data on all staff development, in conjunction with the SDIP Activity Compliance Monitor (N4).

Package C: School Quality Assurance

N11 SMA/SMK Quality Management Trainer & Team Leader – National (40 pm)

17. This position is responsible for the design of several training programs which will be prepared with other members of the Package C consultancy, assisted by external resource persons selected in conjunction with the CPCU. The position requires close collaboration with both directorates and with the firms selected by SMK for the implementation of ISO certification.

(i) Design and apply training modules to enable NRS to establish continuous quality improvement team and to design and apply a school-based system. Train Advisors (N13 - N15) to assume lead role in training staff within each NRS to implement the QA system.

(ii) Design training modules for both SMA and SMK school management teams to apply a performance-based management system as part of the application of comprehensive school-based management practices.

(iii) Liaise with SMK NRS in the selection and application of ISO in-school training, guidance, and eventual certification. Ensure that materials prepared by the Package C consultancy for SMK NRS can be integrated easily with ISO approaches.

Appendix 13 115

(iv) Assist the TA grant consultants in training district, provincial and central government monitors who will assist in monitoring progress in the establishment and application of a school continuous quality assurance program as part of school-based management.

(v) Assist the International School Quality Improvement consultant (I2) to design the training program to train education quality assessors.

(vi) Responsible for designing the mechanisms and providing guidance to principals on the integration of the Revenue Generation and Entrepreneurship program into a school’s quality assurance scheme.

I2 SMA/SMK School Quality Improvement Consultant – International (24 pm)

18. This position is the lead post in working with the international consultants responsible for SMA (I3) and SMK (I4). The post is focused more on quality assurance systems than performance-based management systems therefore emphasis must be directed to the teaching-learning process. Given that SMK schools will pursue ISO certification it is incumbent on this consultant to ensure that the firms selected for ISO and the approach taken address sufficiently classroom management and instructional practices.

(i) Develop a quality assurance and accreditation system for SMA schools that will enable schools to continuously upgrade the quality of their teaching-learning and school management processes within the context of school-based management.

(ii) Assist SMK schools to review the application of their ISO certification to continuously upgrade their training programs to meet the quality assurance criteria required to be eligible for external accreditation for their programs and their institutions.

(iii) Design and assist the team leader to implement a training program to train 72 persons to be accredited as education quality assessors.

(iv) Design the framework for the Package C team members who are responsible for the preparation of a Standards Compendium for both SMA and SMK schools.

(v) Develop an evaluation and quality assurance framework, including monitoring mechanisms, suitable for SMA curriculum; textbooks; facilities and equipment; in-service teacher training; management and leadership. Also, develop student assessment strategies, mechanisms and procedures suited to SMA schools.

(vi) Complete a summary report on the extent to which SMA and SMK schools have adopted continuous quality assurance and performance-based management as pillars of SSE development, including an evaluation of a sample of 4 SMAs from each of the 5 zones and 2 SMKs from each of the four vocational field specialization areas.

I3 SMA Education Standards/Performance Audit - International (12 pm)

19. The deployment for this post is closely linked to the national post (N12). There are five key tasks to be accomplished:

(i) Assist the national consultant for education standards (N12) in the preparation of a Compendium of Education Standards for SMA schools and prepare a guide for principals on priority education standards for school management.

116 Appendix 13

(ii) Prepare guideline that identifies indicators, mechanisms, and criteria for an SMA to conduct self assessments and to report to district, provincial and central authorities under a performance-based management system.

(iii) Design modules specific to SMA schools for training program for Quality Assurance Assessors in partnership with the prime consultant responsible for this program (I2).

(iv) Identify and report to the CPCU any issues or concerns about the utilization of equipment, safety, maintenance and the availability of consumables that in any way limit the effectiveness of these assets in the SMA teaching-learning process.

(v) Prepare two sample school audits of the application of the performance-based management system in an SMK and prepare sample audit reports which can be used in training. The sample audits can include materials from outside Indonesia as indicative approaches.

N12 SMA Education Standards/Performance Audit Consultant - National (30 pm)

20. This post is to be filled by one person for the full duration of the assignment. It is possible that the posting should be split into more than one input in order to coincide with both the design and the reality of implementation schedules (e.g. budget availability to train monitors and to conduct training in schools). The tasks and expected outputs from this post are:

(i) Prepare a Compendium of Education Standards for SMA schools.

(ii) Develop manual and guidelines for monitoring the success and impact of the performance-based management system in an SMA school.

(iii) Assist in the design of training modules for SMA school management teams to apply a performance-based management system and train Package Advisors (and others designed by the CPCU) in the application of modules.

(iv) Design the training schedule and procedure to train school management teams in the performance-based management system in SMS schools.

(v) Assist in preparing reports relative to the use of equipment and related instructional resource materials/tools procured in order to assist the SMA teaching learning process based on the initial work completed by the international SMA Education Standards/Performance Audit Consultant (I3).

N13-15 SMA Education Standards/Performance Audit Advisors - National (72 pm)

21. There will be three advisors (each at 24 pm) selected for this post given the number of SMA schools and their distribution. Following are the tasks and expected outputs for the position:

(i) Act as Advisor to SMA NRS for the application of a continuous quality assurance program including training school teams in establishment of school-based QA team.

(ii) Act as liaison with the Quality Assurance Assessors trained by Package C to prepare monitoring reports on each SMA’s progress to achieve a sustainable QA program.

Appendix 13 117

(iii) Assist the national SMA Education Standards/Performance Audit Consultant (N12) prepare the manual for performance-based management and conduct training and provide on-site guidance to each SMA principal to review their program

(iv) Assist other package consultants (I2, I3 and N11) to prepare a guideline for SMA project schools to conduct self assessments and to prepare progress report on performance-based management system.

(v) Assist in training district monitors to review SMA school progress in establishing quality assurance program and also how to link the QA and performance-based management programs with the preparation of School Development and Investment Plan Accountability Reports.

I4 SMK Education Standards/Performance Audit Consultant - International (12pm)

22. The deployment for this post is consecutive months and is closely linked to the national post (N16). There are four key tasks to be accomplished:

(i) Review and examine the methodologies and assumptions currently used to match education and training programs with labor market demands (domestic and international) and how labor market data influences the formulation of new programs or courses within a program.

(ii) Assist the national SMK Education Standards consultant (N16) in the preparation of a Compendium of Education Standards for SMK schools and prepare a guide for principals on priority education standards for school management (not teaching-learning process).

(iii) Prepare guideline that identifies indicators, mechanisms, and criteria for an SMK to conduct self assessments and to report to government authorities and business and industry under a performance-based management system.

(iv) Design modules specific to SMK schools for training program for Quality Assurance Assessors in partnership with the prime consultant responsible for this program (I2). This work will be completed in conjunction with the SMK program to introduce ISO certification through local company contracts.

(v) Identify and report to the CPCU any issues or concerns about the utilization of equipment, safety, maintenance and the availability of consumables that in any way limit the effectiveness of these assets in the SMK teaching-learning process.

(vi) Prepare two sample school audits of the application of the performance-based management system in an SMK and prepare sample audit reports which can be used in training. The sample audits can include materials from outside Indonesia as indicative approaches.

N16 SMK Education Standards/Performance Audit Consultant - National (30 pm)

23. This post is to be filled by one person for the full duration of the assignment. It is possible that the posting should occur through more than one input in order to coincide with both the design and the reality of implementation schedules (e.g. budget availability to train monitors and to conduct training in schools). The tasks and expected outputs from this post are:

118 Appendix 13

(i) Responsible for the preparation of a Compendium of Education Standards for SMK schools.

(ii) Develop manual and guidelines for monitoring the success and impact of the performance-based management system in an SMK school.

(iii) Assist in the design of training modules for SMK school management teams to apply a performance-based management system and train Package Advisors in the application of the modules.

(iv) Design the training schedule and procedures to train school management teams in the performance-based management system in SMK schools.

(v) Assist in preparing reports relative to the use of equipment and related instructional resource materials/tools procured in order to assist the SMK teaching learning process based on the initial work completed by the international consultant (I4).

N17/18 SMK Education Standards/Performance Audit Advisor - National (36 pm)

24. This post will be filled by two individuals (each at 18 pm) who will be deployed slightly later than the SMK Education Standards/Performance Audit Consultant (N16) post in order to assist with implementation of materials prepared. NOTE: The recommendation is that these posts be filled by two persons; however, DTVE reserves the right to change this to a maximum of six persons of six months each for the six core program areas. Following are the tasks and expected outputs for the position regardless of whether 2 or 6 persons:

(i) Act as Advisor to SMK NRS for the application of a continuous quality assurance program including training school teams in establishment of school-based QA team.

(ii) Assist in monitoring the extent to which each NRS has progressed in the establishment of ISO certification for the school and the extent to which the school is applying ISO principles.

(iii) Act as liaison with the Quality Assurance Assessors trained by Package C to prepare monitoring reports on each SMK’s progress to achieve a sustainable QA program.

(iv) Assist (N16) prepare the manual for performance-based management and conduct training and provide on-site guidance to each SMK principal to review their program.

(v) Assist other package consultants (I4 and N15) to prepare a guideline for SMK project schools to conduct self assessments and to prepare progress report on performance-based management system.

(vi) Assist in training district monitors to review SMK school progress in establishing quality assurance program and also how to link the QA and performance-based management programs with the preparation of School Development and Investment Plan and Accountability Reports.

25. Following as Table A13-2 is the schedule of consultant mobilization and deployment. Table A13-3 is a list of the consultants in all four packages on the basis of international or national posts. Other tables that are integral to this overall review include Table A13-4: Output and Accountability Assignments; Table A13-5: Procurement Package Implementation; and Figure A13-1: CPCU Organization.

Appendix 13 119

TABLE A13-3: SUMMARY LISTING OF CONSULTANTS – INTERNATIONAL/NATIONAL

# Position Int’l PM Nat’l PM

I1 Project Management, Coordination and Accountability 36 I2 School Quality Improvement 24 I3 SMA Education Standards & Performance Audit 12 I4 SMK Education Standards & Performance Audit 12 84

N1 Project Management, Coordination and Accountability 72 N2 Student Admissions Policy and Procedures Specialist 24 N3 Education Planning/Management & Compliance SMA 72 N4 Education Planning/Management & Compliance SMK 72 N5 SDIP Compliance Monitor Activity Tracking 70 N6 SDIP Compliance Monitor – Finance Tracking 70 N7 SDIP ICT Specialist & Digital Clearinghouse 40 N8 HRD/Training Management Consultant 72 N9 HRD/Training Management Advisor – SMA 36

N10 HRD/Training Management Advisor - SMK 36 N11 Quality Management Trainer – SMA & SMK 40 N12 SMA Education Standards/Performance Audit Consultant 30 N 13 SMA Education Standards/Performance Audit Advisor 24 N 14 SMA Education Standards/Performance Audit Advisor 24 N15 SMA Education Standards/Performance Audit Advisor 24 N16 SMK Education Standards/Performance Audit Consultant 30 N17 SMK Education Standards/Performance Audit Advisor 18 N18 SMK Education Standards/Performance Audit Advisor 1 18

772

1 Note: DTVE may wish the post of SMK Education Standards/Performance Audit to be six posts of 6 months each

rather than 2 posts of 18 months. Decision not finalized at time of report.

120 Appendix 13

TABLE A13-4: OUTPUT ACCOUNTABILITY ASSIGNMENTS

Key Initiatives Prime Responsibility Support ResponsibilityOutput 1: Improved Student Learning OutcomesFramework for Compendium of Education Standards

SMA/SMK School Quality Improvement Consultant (I2)

SMA Education Standards & Performance Audit (I3) SMK Education Standards & Performance Audit (I4)

Framework for Compendium of Education Standards

SMA Education Standards /Performance Audit (N12)

SMA Education Standards /Performance Audit (N13-15)

SMK Education Standards/Performance Audit (N16)

SMK Education Standards /Performance Audit (N17/18)

Digital Clearinghouse ICT SDIP and Digital Clearinghouse (N7)

Education Planning/Project Management (N3)

Training Catalog of Accredited Courses including Revisions/Publication

Human Resources Development/Training Management (N8)

Human Resources Development/Training Management (N9/N10)

Teacher Certificate and Curriculum Enrichment

Independent P3G Teams for Each Program Area

Project Management, Coord-ination & Accountability (N1)

School Leadership and Management Teams

Education Planning/Project Management (N3/N4)

Quality Management Trainer – SMA & SMK (N11)

Guidelines to help Formulate Policy on International Standard Curriculum

Mission; Mid-Term; BME and PCR (ADB TA Grant)

Project Management, Coord-ination & Accountability (N1)

Life Skills Report including model lesson plans and Program

Human Resources Development/Training Management (N8)

Human Resources Development/Training Management (N9/N10)

Guideline on Management of a Career Planning and Job Placement Center/Program

Human Resources Development/Training Management (N8)

Human Resources Development/Training Management (N9/N10)

Output 2: Improved School Management and Quality AssuranceMIRS Procedures Guide and Training Program

SDIP Compliance Monitor – Activities (N4)

ICT SDIP and Digital Clearinghouse (N6)

AFIS Procedures Guide and Training Program

SDIP Compliance Monitor – Finance (N5)

Education Planning/Project Management (N3)

Block Grant Procedures Guide and Training Program

SDIP Compliance Monitor – Finance (N5)

Education Planning/Project Management (N3)

Performance-based management guideline for SMA self-assessment

SMA Education Standards & Performance Audit (I4)

SMA Education Standards & Performance Audit (N10)

Performance-based management guideline for SMK self-assessment

SMK Education Standards & Performance Audit (I5)

SMK Education Standards & Performance Audit (N12)

Personnel Management Support System including Guideline and Training

Quality Management Trainer – SMA & SMK (N9)

Education Planning/Project Management (N3)

Revenue Generation and Entrepreneurship Program

Quality Management Trainer – SMA & SMK (N9)

Education Planning/Project Management (N3)

Appendix 13 121

Key Initiatives Prime Responsibility Support ResponsibilitySchool Committee Development Program

Education Planning and Management (N3)

Quality Management Trainer – SMA & SMK (N11)

Training Program and Certification of Education Quality Assessors for SMA and SMK schools

SMA/SMK School Quality Improvement Consultant (I2)

SMA Education Standards & Performance Audit (I3) SMK Education Standards & Performance Audit (I4)

Output 3: Increased Equity and Provision of Special ServicesScholarship Management Program

Education Planning/Project Management (N3)

Admissions Policy and Procedures Specialist (N2) Mission; Mid-Term; BME and PCR (N14)

Special Services Program School Admissions Policy and Procedures Specialist (N2)

Human Resources Development/Training Management (N8) Human Resources Development/Training Management (N9)

Annual Evaluation Study on each NRS’s school Improve-ment Program (start 3rd Year)

Education Research Education Research

Mid-Term Report on Identified Models of NRS Effectiveness.

Mission; Mid-Term; BME and PCR

Education Research

Report: Effective School Models in SMA

Education Research (ADB TA Post)

Education Research

Report: Effective School Models in SMK

Education Research Mission; Mid-Term; BME and PCR

Discussion Paper on Transforming SSE to International Standards

Project Coordination & Accountability (I1) Policy Dialog and SSE Strategy (ADB TA Post)

Project Management, Coord-ination & Accountability (N1) Policy Dialog and SSE Strategy (ADB TA Post)

Proceedings from Regional and National Forum on Policy and Strategy for SSE

Policy Dialog and SSE Strategy (ADB TA Post)

Project Management, Coordination & Accountability (N1)

Recommendations on intergovernmental operating procedures and education funding

Mission; Mid-Term; BME and PCR (ADB TA Post)

Policy Dialog and SSE Strategy (ADB TA Post)

Report on options on school financing practices, school quality improvement alternatives, curriculum, equity and access priorities

Policy Dialog and SSE Strategy (ADB TA Post)

Policy Dialog and SSE Strategy (ADB TA Post)

Guidelines for consideration in the development and implementation of an overall long-term strategic plan.

Policy Dialog and SSE Strategy (ADB TA Post)

Policy Dialog and SSE Strategy (ADB TA Post)

122 Appendix 13

Appendix 14 123

COMPLIANCE MONITORING FRAMEWORK

A. Introduction 1. The classical project life cycle begins with recipients1 identifying a problem. A group of technical experts then determine what actions are necessary to solve that problem, and then packages those actions into a project format. Recipients request an agency to provide financing for the project. Upon receipt of the financing, recipients implement the actions, with monitoring.2 Typically, the recipients hire consultants (technical experts) to assume a lead role in project implementation, including monitoring. Monitoring reports are reviewed by the recipient project management team and the funding agency project officer(s) and project adjustments are made. Finally evaluation is conducted (see

2. Figure 4).

Figure 4 : Idealized Classical Project Life Cycle

3. Although both monitoring and evaluation reports are received by the recipient project management team, research shows that “generally, except for persons who have been directly involved in [donor] evaluations, the knowledge of [donor] evaluations is limited. Even those involved [with the project] had not seen the final evaluation reports”. (OECD, 1998, p. 38)

4. This description, however, represents an idealized project life cycle. In fact, most projects actually begin with activities which the recipients want to implement, but cannot afford. In this case, the “project” already exists and it is the job of the technical experts to find a problem for the project to solve – as well as providing the packaging required by potential funding agencies. These include implementation guidelines, economic and financial analysis, identification of beneficiaries, monitoring and evaluation framework, etc.

1 Recipients” are the government officials involved with a project. The term “beneficiaries” is used for the people for

whom the project will produce changes/benefits. 2 For the purpose of this Framework of project implementation, compliance monitoring is concerned with “keeping

the project on track”, i.e. Activities, Milestones and Inputs from the Project Design and Monitoring Framework as well as Interventions and Expected Results from the Technical Proposal, while evaluation is concerned with the test of planning and the theories underlying project design. i.e. achievement of Outputs, Outcomes and Impact in the Project Framework. The framework for evaluation is presented Appendix 15, Evaluation and Research.

External – technical experts

Internal -- recipients

Problem

Project

Implementation

Monitoring

Outputs Outcomes

Impact

Evaluation

124 Appendix 14

5. Recipients are confronted with a wide variety of problems. Advocates provide them with a wide variety of solutions. The result is a process that tends to “attach” problems to solutions in a very illogical and irrational manner. Recipients will often seek assistance from technical experts (or international organizations) with a mixed bag of seemingly unrelated, but strongly advocated, activities. The process of directing these aspirations into a logical project package, consistent with funding agency requirements, often results in a proposal that appears to be somewhat alien to the recipients. As a consequence, they can easily have little sense of ownership.

6. The development process should begin with problems and then identify solutions based on the theories of cause-and-effect. Causes of a problem are the source of solutions. Changing the causal situation will change the effect from a problem into a benefit. There is a one-to-one correspondence between solutions and problems (via rational theory) and between solutions and beneficiaries (via sound management):

solutions (causes) rational theory problems (effects)

solutions implementation (sound management) beneficiaries 7. In 8. Figure 4, the “problem” box is actually filled with “activities” to be packaged into a project. Therefore, the representation should be as presented in Figure 5.

Figure 5 : Actual Classical Project Life Cycle

9. The “problem analysis” approach, developed from the ZOPF process pioneered by the German Technical Assistance Agency GTZ has the effect of guiding the recipients into a more logical mode of thinking resulting in a ‘tree diagram’. Recipients are facilitated to work backwards from activities, through the cause-effect relationships, and reach a consensus on the (single) problem to be solved by the project. The fact that the process is participative is presumed to guarantee ownership. See Figure 3.

10. In both the classical project and the problem tree project modes, the project planners establish targets (milestones) for activities, time schedules and financial plans. The monitoring team collects data about actual project conditions and matches it to these targets and schedules. Thus the monitoring function is essentially compliance monitoring. The evaluation team collects data about variables which have been identified (by the planning team) as

External – technical experts

Internal -- recipients

Activities

Project

Implementation

Monitoring

Outputs Outcomes

Impact

Evaluation

Appendix 14 125

indicators of project outputs, outcomes and impact. If the project has fulfilled all compliance obligations in implementation but the evaluation indicators are not achieved, then the evaluation team concludes that the project’s cause-effect logic (“vertical” logic in the project framework) was faulty, or irrelevant or not applicable in the concrete project situation.

Figure 6 : Problem Tree Project Life Cycle 11. The proposed SSSEP derives from a process where the problem is not well defined. Neither the Government nor the Bank has a strategy for the SSE sub-sector3 - which is actually not a single sub-sector, but two streams - general senior secondary education (SMA) and vocational senior secondary education (SMK). Further, the cause-effect relations (theory) governing SSE are not supported by a strong theoretical basis which has been vetted through empirical testing under diverse conditions. The Millennium Development Goals (MDG) and Education For All (EFA) initiatives have focused attention on producing adequate basic education with the attendant policy and strategies,4 but the same cannot be said for the senior secondary level, especially in developing countries.5 12. Finally – and most important – the SSSEP is a needs-driven project. Schools will prepare their own school development plans. Therefore, project planning will be internalized at the level of the beneficiaries (school), not the recipients (MONE, provincial and district government). Such planning will be an integral part of the project implementation process. It is this latter characteristic which defines the monitoring and evaluation process for SSSEP, which includes benefit monitoring and evaluation. Schools will be responsible for preparing a 5-year annual development plan and investment proposal (SDIP) which includes an Accountability Contract. Schools will be monitored to ensure compliance with approved financial and physical 3 The Draft Strategic Plan in education for 2005 – 2009 moves a significant distance in the direction of a specific

policy for SSE, including the differences between the general and vocational programs. 4 Basic education consists of primary (6 years) and junior secondary (3 years). Nine years of basic education is now

legally compulsory for all children and the Government is striving to implement this law in practice. 5 This statement is less true for the vocational stream than for general SSE. Considerable experience has been

accumulated throughout the world in improving the effectiveness of vocational education.

External – technical experts

Internal -- recipients

Activities

External technical experts

Problem

Project

Implementation

Monitoring

Outputs Outcomes

Impact

Evaluation

126 Appendix 14

targets and subsequent project investment will be dictated by the degree of commitment and accomplishment relative to an annual Accountability Contract.

B. General Principles 13. Interventions, activities, expected results and milestones are monitored by the compliance monitoring system. The Project Design and Monitoring Framework Outcome and Outputs are monitored by the evaluation and research (E&R) system. 14. The compliance monitoring system is managed through a Compliance Monitoring Unit (CMU) which will be located in the project management unit (CPCU). The system is divided into two sub-systems: compliance monitoring of activities (CMA); and compliance monitoring of finance (CMF). Activities for the CMA and CMF are carried out in two parallel streams: (i) at the level of the school; and (ii) at the level of the project. These two sub-systems will be managed by compliance monitoring teams under the CMU, supported by the consultants appointed in Package B, Project Planning, Management and Compliance (see Appendix 13).

15. The compliance monitoring system will be a rapid-response system. Monthly reports from project actors must be received within 5 working days of the close of the month. These reports will use an automated, standardized, computerized format and will be submitted electronically.6 The CMU monthly report will be submitted to the project, for reporting to the Steering Committee, by the 10th working day of the succeeding month. This will be made possible by the use of computerized, standardized analysis protocols and reporting formats. At 3-month intervals, these reports will be submitted to the Bank as part of the required reporting process.

16. Given that the compliance monitoring will be a rapid-response system it is not feasible to use the administrative hierarchy (District, Province, Center) for reporting. Rather, the project implementation coordination (CPCU and Package B consultants) process will provide an opportunity for regional government involvement in compliance monitoring. Their designated staff will be trained as project monitors. The CMU teams (or the Package B consultants on their behalf) will make presentations at all project coordination meetings on the results of compliance monitoring.

17. It should be noted that CMU presentations to coordination meetings are not the same as Evaluation and Research presentations (see Appendix 8, ADB parallel TA grant).

18. All project activities which are scheduled and financed through the School Development and Investment Plan (SDIP) are monitored at the level of the school. Activities which are planned, scheduled, implemented and financed at the level of the project (both GOI and consultant team/packages) are monitored at the level of the project. Compliance with agreements and covenants by stakeholders outside the project will be monitored at the project level by the CMA sub-unit within the Compliance Monitoring Unit.

19. Compliance monitoring will be participatory, in order to accommodate the needs-driven characteristic of the project itself. Project actors (schools, P3Gs, quality assurance institutes/LPMP, project management teams, facilitators, etc.) will establish their own schedules and targets. The CMA will monitor compliance with these schedules and targets.

6 The school-level Management Information and Reporting System (MIRS) and the Accounting and Finance

Information System (AFIS) will be designed to produce these reports, in the appropriate format, automatically. Project Tracking and Financial Tracking Software will also be designed to produce required reports automatically. Data will be submitted to the project management team and consultants via the Digital Clearinghouse prepared by the project as the key webpage for project management and information dissemination.

Appendix 14 127

20. The compliance monitoring system will use a “yellow” flag procedure. Each monthly reporting period the CMU will compare targets with accomplishment (see tasks for Compliance Monitors in Package B Consultancy, Positions N5 and N6). Project actors who do not achieve their planned targets will be flagged as “yellow” meaning that no immediate action needs to be taken, as long as the reason for not achieving the target is acceptable. Yellow flagged actors will, however, be reported to the project management team (CPCU). Yellow flag reports will automatically be checked at the end of the subsequent month, to assure that either the target has been achieved or that the target has been revised. In the event that there is still a problem, a “red” flag situation, the CMU will communicate with other concerned project stakeholders to work out a solution strategy (such exchanges should avoid field visits unless essential in order to reduce operational costs). The CMU will monitor implementation of the agreed strategy.

21. Actors who accumulate 3 different yellow flags in the course of 1 year, or red flag actors who do not implement an agreed solution strategy will be reported to the project management team (and the respective Directorate) and reviewed with the Bank during ADB missions for follow-up action.

C. Compliance Monitoring of Activities (CMA)

a. School-level Monitoring by CMA 22. The school-level processes to be monitored by CMA are shown in Figure 4. Schools create their development and investment plans (SDIPs) based on project guidelines. The guidelines will ensure that the SDIPs include activities required by the project for all project schools (e.g. principal training, installation of adequate education information and financial management systems). The project will approve SDIPs on a strict time deadline, using transparent approval procedures. These approvals will be monitored by the CMA at the project level.

Figure 7 : School Level Processes to be Monitored for Compliance Monthly monitoring

reports

Reporting

Quarterly targets for activities

Monthly targets for activities

Implementation

Yellow flag

Annual targets for activities

School Development and Investment Plan

(SDIP)

128 Appendix 14

23. Based on the approved SDIPs, the schools will draw up annual implementation programs and targets. These annual implementation plans will be discussed during an annual coordination meeting held by the project, where the project’s annual targets are allocated among project schools based on their individual needs and requests. These annual targets constitute the basis for the project’s annual plan submitted to the Bank for approval. Such approval is required before the project can access funding from the Ministry of Finance.

24. The difference between the school’s planning year (August to July) and the project’s planning year (January to December) will require adjustment of the administrative scheduling process. The schools will plan based on their academic years, but submit plans to the project based on the project’s year. Therefore, a project annual plan for the school will consist of the second semester of one academic year plus the first semester of the succeeding academic year.

25. Once the schools’ annual plans, including project interventions, have been decided jointly with the project’s annual plan, then the schools allocate the annual targets into quarterly and monthly activities’ schedules with associated quarterly and monthly financial plans. The monthly schedules, in particular, will allow schools to take account of their academic schedules, examination periods, vacations, etc. in designing and implementing their project interventions. Each school will have its own project management team.

26. Schools will send monthly reports on compliance with their activity and financial targets for project-related interventions to the Compliance Monitoring Unit (CMU), with copies to the District Education Service (who will send summary reports to the Provincial Education Service (copies will be in electronic versions). These monthly reports will be very simple in content (targets, achievement, explanation of over- or under-achievement and plans to overcome underachievement) and will be in the form of standardized computerized format. The quantitative information will be drawn directly from the MIRS and AFIS by the reporting software. The reporting software will also include automatic comparison of targets and achievement and will offer a text field for the school to explain reasons for over- or under-achievement and plans to overcome underachievement.

27. The CMA will conduct a quick assessment of the school monthly reports, to determine which schools are over or under achievement targets. Over-achieving schools will be assessed to assure that they are not deviating substantially from the annual plan. Under-achieving schools will be “flagged”. All these actions will be taken automatically by the compliance analysis software. The compliance analysis software will report flagged schools and present their plans to overcome the underachievement for checking by the CMA monitor. The compliance analysis software will save a list of flagged schools and report them during the next month’s analysis, for follow-up to determine whether they need special assistance from the Project Management team in order to return to their original plans, or to revise their quarterly and/or annual targets.

28. Red flags will be added manually by the CMA monitor after approval from the Package B, Project Implementation Team Leader. Note: same will occur for the Compliance Monitor for Finance (see next section).

29. This monthly reporting system will allow the CMU to provide the information needed for project reporting to the Project Steering Committee and the Bank on a quarterly and annual

Appendix 14 129

basis, as well as supplementary data needed for Bank Missions, Mid-term review, etc. Project managers, GOI and the Bank will have access to monthly-updated statements of original targets, revised targets and achievements.

30. Ideally, the Provincial Education Service should host an annual performance and accountability review for all NRS located in the province. The E&R team (independent consultancy package) will prepare a summary report for such meetings and also for inclusion in the project’s annual report to the Bank. Ideally, provincial meetings should include representatives from the community, NGOs, etc. in order to foster greater understanding of the progress of National Reference Schools (NRS) and potential developments for SSE.

31. NRS are required to admit students based solely on merit. The Compliance Monitoring Unit (CMU) will conduct random spot checks of admissions policies and implementation procedures for NRS to assure that admissions are merit-based.

32. All NRS will have poverty scholarship and/or targeted scholarship students, therefore compliance with implementation of the support services and academic support will be monitored on an annual basis (by both CMA and the CMF as outlined below). Standard, computerized reporting formats will be developed. Reports will be submitted electronically, together with the monthly report for the final month of the academic year.

33. NRS will be required to institute continuous quality assurance management systems which will be articulated in each school’s SDIP.7 CMA will monitor implementation of these systems for compliance with project standards and compliance with contracts by third-party QA/ISO providers.

34. Package C, Consultancy Services – School Quality Assurance, will train 72 individuals as Education Quality Assessors who will assist the CMA in this task. Once trained, these individuals along with monitors from the districts and provinces (trained by the project) can assist the CMA in this task.

b. Project-level Monitoring by CMA 35. In addition to school-level activities, the project will also include activities carried out directly by the Project Management team or by consultants. Many of these activities will be concentrated during the first year of project implementation, when service providers must be selected, trained and furnished with materials; coordination systems for certification programs and other training programs established; the Catalog of Accredited Courses developed; procurement rules for School Block Grants developed and schools trained in implementation of the Block Grants. If these activities fall behind schedule, it will have an impact on all subsequent project activities. The CMA system at the project level will monitor project management team compliance with the work schedules presented in the annual plan (for the government team) and inception report (for the consultant team).

36. Project management is also required to approve all SDIPs. Again, fulfillment of time deadlines is critical to allow the schools to implement their interventions on schedule – which allows the interventions to be relevant to the school’s needs. CMA will monitor the approval process to assure that it is open and transparent and proceeds on schedule. Approval of NRS annual plans will also be monitored, for the same reason.8

7 Internal Quality Assurance (QA) for SMA and ISO for SMK. 8 As noted, SDIPs will be formulated on the school’s academic year. NRS annual implementation and financial plans

will be based on the project’s financial year. Deadlines for approvals will take account of this scheduling.

130 Appendix 14

During the project, the project management and implementation consultancy team will provide support services for project finance management to assist the CPCU in the administrative procedures associated with managing project funds. The support services for project finance also have a crucial time dimension and achievement of the time deadlines will be monitored by CMA (not an auditing function but a time compliance activity function).

37. The project management and implementation consultancy team (Package B) will coordinate activities of the national service providers and provide guidance on the amount of block grants for the design, preparation and implementation of training courses. But, the CMA will provide compliance monitoring for these training activities. The project management consultancy will also provide some training directly e.g. managing block grant funds via trust account, producing data via project MIRS, etc. These training activities will also be monitored by CMA. Project management will provide CMA with a schedule of training activities and CMA will take a random sample for compliance monitoring of content, training teaching-learning methodologies, trainee active participation, etc. Results of the compliance monitoring will be discussed immediately with the service provider or project management trainers or monitors. The CPCU will have monitors as part of its M&E unit and these individuals will work in conjunction with the CMU. The “yellow flag” procedure will be used to identify and follow up service providers and project management trainers who are not complying with their contractual requirements.

38. At the beginning of the project, curriculum design teams will design and pilot test the training courses which eventually will be implemented by service providers. The “trainees” for the pilot test will be a combination of future trainers and ordinary trainees (principals for principal training, classroom teachers for teacher training). The CMA will facilitate the design team to evaluate the pilot test, including course content to assure that the training material is new to trainees (and not just repetition of what trainees already know); the degree to which the training material will be applicable in the classrooms or schools; and constraints in the application of the training materials in the classroom/school. The CMA will facilitate the trainers and course designers to evaluate not only the course content but also the teaching-learning methodologies to assure that they are consistent with the content and basic premises of the training materials. At the time the training materials are used in training courses, CMA together with GOI monitors will continue to evaluate the course content and applicability. The focus of evaluating constraints will not be on a listing of constraints perceived as external to trainees, but rather on facilitating trainees to see themselves as empowered problem-solvers who can manipulate the constraints and/or environment to produce solutions. The E&R consulting team (ADB parallel TA grant) will assist the CMU and GOI monitors to develop the evaluation instruments and reporting formats for these tasks.

39. The project management team (CPCU) will provide support to associate/sister schools to prepare their SDIPs and to ensure they fulfill state of readiness criteria for access to project interventions. CMA will monitor compliance with the targets and work schedule for preparation and approval of the SDIPs, as well as compliance with transparent and objective evaluation of state of readiness criteria. The Government has committed itself to providing opportunities for private, as well as public, schools to become NRS and associate/ sister schools. CMA will monitor the procedures established to fulfill this commitment and implementation of those procedures.

40. The project will prepare a compendium of international standards, which will be shared with the new Center for National Education Standards (Badan Standard Nasional Pendidikan) to assist them in their work of identifying suitable standards for National Reference Schools. The CMA will monitor the schedule of production of the compendium.

Appendix 14 131

D. Compliance Monitoring of Finance (CMF) 41. The Compliance Monitoring for Finance - CMF has two objectives: recording the financial aspects of the project and eliminating opportunities for misuse of project funds. The former assignment should not be confused with the process of withdrawal applications and enabling the request for funding through Bank Indonesia (see para 44).

42. Avoiding the misuse of funds is obviously extremely important.9 Special attention will be given to institutionalizing financial compliance mechanisms in schools and the various government agencies involved in project activities through the requirement that all project funds must be received in a specially designated trust account with full disclosure procedures.

43. Finance activities, at both the school level, other key agencies (e.g. P3G) and project level, will be monitored in accordance with standard accounting and auditing principles. Schools and project management actors will provide monthly financial reports in accordance with formats provided by the CMF. These reports will be analyzed and followed up, using the “yellow flag” system discussed above.

44. Random audits will also be conducted, based on standard auditing principles. Special attention will be paid to the financial management of block grants which schools use to procure local supervision services as well as actual construction. If the CMF finds indications of misuse of funds, the relevant stakeholders and actors will be invited to take whatever measures are necessary to rectify the situation. The CMU will monitor implementation of the agreed measures. This will occur in conjunction with the CPCU’s Finance Information Support Unit (FISU) which is primarily involved in project financial management but, given the necessity to conduct some field monitoring, can link their work with the CMU. The CPCU will have the lead responsibility in coordinating the work of the CPCU with its main consulting support team, Package B, Project Management, Implementation and Compliance.

45. In addition to routine monthly monitoring of finance, the CMF unit will also monitor procurement by NRS under School Block Grants. The project management team (CPCU) together with the CMF will set standards and procedures and provide training for school and project personnel in compliance with the standards and procedures. Schools will submit annual reports covering implementation of procurement to the CMF unit. CMF will conduct random audits, based on standard auditing principles. The CMF will also monitor expenditures on civil works construction and renovations. This will be completed in conjunction with the procurement specialists in the CPCU and also the civil works specialists, also based in the CPCU. These two specialist areas are housed in the Logistics Support Unit in the CPCU.

E. Compliance with Agreements and Covenants (CAC) 46. The success of the project depends not only upon project actors, but also upon actions taken by stakeholders outside the project. This includes the District government which is now responsible for providing public educational services and the Provincial government which is responsible for supervising and coordinating educational services. MONE will develop a MOU for all districts and provinces where NRS and associate/sister schools are located, to demonstrate each party’s commitment to manage and maintain project schools at international standards. CMA will monitor compliance with these MOUs on an annual basis.

F. Consulting Services

9 See also Fraud and Anti-Corruption Report, ADB TA 4239-INO, October 2004.

132 Appendix 14

47. Consulting support for compliance monitoring is included in the internationally tendered Package B: Project Management and Implementation Consultancy. Details of the each consultant’s assignment are outlined in Appendix 13. The team is as follows:

Package B: Project Management, Implementation and Compliance

Positions International Person Months

National Per. Months

Education Planning, Project Management/ SMA & SMK 0 144

SDIP Compliance Monitor for Project Activity Tracking 0 70

SDIP Compliance Monitor for Finance Activity Tracking 0 70

SDIP ICT Specialist & Digital Clearinghouse 0 40

HRD and Training Management 0 144

Total Person Months 0 468

G. Matrix of Compliance Monitoring

Type of Compliance to be Monitored Actor/Activity

Target Deadline Criteria Agreements

School/SDIP x

School/admit students x

Project/develop courses, materials and Catalog x

Project/select and train providers x

Project/coordination of certification x

Project/rules and training for School Block Grants x

Project/approve SDIP and school annual plans x

Project/disburse block grants x

Project/finance support unit activities x

Providers/training activities x x

Project/training activities x x

Project/support to 2nd phase schools for SDIP x

GOI/include private schools x

Project/compendium of international standards x

District & Province/MOU x

NOTE: The management of Student Funding Support Program will be determined after the scope of student financial assistance program has been finalized by the Project upon project commencement (Concept– Framework for Admissions and Student Support – Annex H)

Appendix 14 133

134 Appendix 15

Target

1 International standard graduates, SMA 1200 students courses 2 International standard graduates, SMK 900 students courses 3 Other student graduates from NRS SMA 2000 students courses 4 Other student graduates from NRS SMK 1000 students courses 5 Merit financial support for students, full 15,200 students student years6 Merit financial support for students, partial 10,800 students student years7 Targeted tutorial support for students 6,000 students student years

8 SMA Principals certified in NRS 100 administrators 250 day program9 SMA Vice Principals/key staff certified in Stream 1NRS 200 administrators 250 day program

10 SMA Principals/Vice certified in Stream 2 & 3 NRS 310 administrators 250 day program11 SMK Principals certified in Stream 1NRS 60 administrators 250 day program12 SMK Vice Principals/key staff certified in NRS 120 administrators 250 day program13 SMA Principals/Vice certified in Stream 2 & 3 NRS 190 administrators 250 day program14 SMA Teachers certified in Stream 1NRS 3000 teachers courses 15 SMA Teachers certified in Stream 2 & 3 NRS 1200 teachers courses 16 SMK Teachers certified in Stream 1 NRS 1500 teachers courses 17 SMK Teachers certified in Stream 2 & 3 NRS 600 teachers courses

18 Other SMA teachers in Stream 1 NRS 2000 teachers courses 19 Other SMA Teachers in Stream 2 & 3 NRS 500 teachers courses 20 Other SMK teachers in Stream 1 NRS 900 teachers courses 21 Other SMK teachers in Stream 2 & 3 NRS 720 teachers courses 22 SMK Technicians and Workstation Assistants 240 persons 30 day program23 SMK Student Assessors 150 persons 30 day program24 SMA/SMK Science Technicians in Stream 1 NRS 400 persons 30 day program25 SMA/SMK Science Technicians in Stream 2 & 3 NRS 160 persons 30 day program26 SMA/SMK ICT Technicians in Stream 1 NRS 160 persons 30 day program27 SMA/SMK ICT Technicians in Stream 2 & 3 NRS 64 persons 30 day program28 SMA/SMK Quality Assurance Training in NRS 520 persons 5 day program29 SMA/SMK Librarians in Stream 1 NRS 160 persons 20 day program30 SMA/SMK Librarians in Stream 2 & 3 NRS 64 persons 20 day program31 SMA/SMK Counsellors/Career Planners 320 persons 30 day program32 SMA/SMK Staff in Special Social Services 320 persons 15 day program32 SMA/SMK Staff in Rev. Gen/Entrepreneurship 200 persons 10 day program33 SMA/SMK Staff in Networking & Dissemination 400 persons 3 day program

34 SMA Admin staff trained in SDIP 600 persons 5 day program35 SMA Admin staff trained in MIRS 200 persons 5 day program36 SMA Admin staff trained in AFIS 200 persons 5 day program37 SMA Staff in Personnel Mgt System 200 persons 5 day program38 SMK Admin staff trained in SDIP 240 persons 5 day program39 SMK Admin staff trained in MIRS 120 persons 5 day program40 SMK Admin staff trained in AFIS 120 persons 5 day program41 SMK Staff in Personnel Mgt System 120 persons 5 day program

42 Quality assurance personnel Certified (P3G & LPPM) 80 persons 60 day program43 Provincial & District monitors as SDIP monitors 180 persons 20 day program44 Other monitors/facilitators in SDIP evaluation 120 persons 20 day program45 Independent monitors to assist with Project Evaluation 80 persons 20 day program46 LPMP & P3G staff & Other Education Service Providers 120 persons 20 day program47 School committee members 480 persons 3 day program

Specification

Beneficiaries of Staff Development Program

C. Tertiary

B. Secondary

A. Primary

Certification Programs

Non Certified Courses

Administration System for All types Schools

Appendix 15 135

Fellowship Program including Cost Estimate

Note: Costing completed based on US$ 4,000 per person month

Persons Months TotalTotal Cost

Estimate Total Cost by

SMA & SMK SMA Teacher Training 150 1.5 225 $900,000 SMA Curriculum Development 150 1.5 225 $900,000 SMA Other Teachers 50 1.5 75 $300,000 SMA Leadership Placements 300 1.5 450 $1,800,000

Totals 561 841.5 $3,900,000 $3,900,000SMK Teacher Training 60 1.5 90 $360,000 SMK Curriculum Development 46 1.5 69 $276,000 SMK Teacher Training 120 4.5 540 $2,160,000 SMK Other Teachers 46 1.5 69 $276,000 SMK Leadership Placements 140 1.5 210 $840,000

Totals 382 681 $3,912,000 $3,912,000

Integrated Program (SMA/SMK) Career Center Coordinators 60 1.5 90 $360,000 $360,000 Total $8,172,000

Note: The fellowship allocations are only for the Stream 1 & 2 Candidate National Reference Schools

136 Appendix 17

SUMMARY INITIAL POVERTY STRATEGY AND SOCIAL ANALYSIS

A. Linkages to the Country Poverty Analysis Sector identified as a national priority in country poverty analysis? Yes Sector identified as a national priority in

country poverty partnership agreement? Yes

Contribution of the sector/sub sector to reduce poverty in Indonesia: SSE level education provides graduates with better employment prospects; less time lag between graduation and job or higher education; and, potentially better wage prospects. A higher educated labor force generates a more productive workforce and greater investment. Enrolment is driven by income and constrained by poverty. Employment and incomes are driven by education. Parents are constrained by costs and income; therefore, if they do send their children to SSE, there is a strong link to higher personal wages and, also higher family incomes.

B. Poverty Analysis Proposed Classification: PI/GD

Within SSE, there is an income gap between the top and middle income levels among students. Although SSE enrolment levels are lower in rural areas, the pattern of income gaps is similar. Interventions for existing schools, therefore, will be directed to families able to educate their children as far as SSE. Poverty targeting for SSE access is difficult because the pool of poor families with SSE eligible children has already reduced by previous non-transition from JSE. The economic crisis raised the issue of vulnerability (near-poverty). Students with SSE graduation are less vulnerable to movement into lower quintiles. Placing an emphasis on poverty is not a big factor in enrolment growth but it does influence income, impacts improved transition and student retention. Project will support improved wage premiums by producing better qualified graduates which increases family incomes through improved job placement on graduation. This scenario will generate a cycle of increased SSE participation due to family income levels. Schooling linked to job opportunities is an important strategy. Also, the focus initially on urban areas is key since employment prospects are higher in the urban sector and, through this initiative, other less urban areas will gradually be beneficiaries. Better economic conditions in higher population centers will generate other strategies leading to better conditions for all - an iterative process supportive to improved social and economic development.

C. Participation Process

Stakeholder Analysis: No analysis completed in this TA Participation Strategy: Project includes targeted scholarships to qualified students to attend National Reference Schools which could improve transition and, through this mechanism, access and enrolment.

D. Social Issues

Subject Significant, Not Significant/ None Strategy to Address Issues Status of Output

Prepared

Resettlement Not Significant Not part of project Not Needed

Gender Slightly Positive SMK Targeted Scholarships; Awareness of Options during SMA Stream Selection

Affordability Positive SMA and SMK General and Targeted Scholarships and Living Allowances for

Students from Rural/Remote areas and Poor

Labor Positive Targeted Programs and Student/Parent Awareness

Indigenous People Positive Targeted Scholarships for Disadvantaged

JSE’s could benefit Indigenous People

Scholarship TORs will be prepared as part of the Project

Administration Memorandum

Other Risks/ Vulnerabilities Positive Government MOUs and School Accountability

Contracts built included in Covenants Yes

Appendix 17 137

SCHOOL TRUST ACCOUNT MANAGEMENT 1. The most cost effective approach to ensuring good project governance is one of building multiple checks by a range of stakeholders (government, donor and civil society) into the project design. Success is dependent on identifying potential ‘auditing agents’, designing the processes by which they are empowered to undertake this role (both procedural and in terms of training) and securing commitment. Key is communicating project expectations and providing mechanisms to negate the opportunity for corruption--“… the systematic use of public office for private benefit whose impact is significant on access, quality or equity in education.”1 Ultimately, to tackle corruption, people’s behavior has to change and this requires an examination of incentives and disincentives that cause people to act in a corrupt manner and the provision of mechanisms that make it easier to adopt best practices. While guidelines, manuals and regulatory controls can influence the balance of factors which motivate behavior, the way such ‘governance tools’ are available and used is equally important.

2. The desired outcome in all aspects of project design and implementation is enhanced levels of trust – trust in both systems and people. Trust is a product of both consistency and reputation. An organization that ensures what is supposed to happen, happens and according to the pre-determined procedures will, over time develop a reputation for ‘trustworthiness’.

3. To anticipate issues that challenge the opportunity to establish and sustain such an environment, the project has introduced a Trust Account. It is an independent bank account through which all project funds must be managed. Block grant awards will be directed to this Trust Account and schools will be obliged to provide internal school bi-weekly disclosures of all transactions to ensure broad in-school and community awareness of all decisions and use of funds. Such public disclosure and enabling awareness is key to reducing fraud and corrupt practices. Monthly, each school will be required to report all activities funded via the block grant and all revenues and expenditures. Appendix 14 provides an overview of the compliance monitoring process and Appendix 13 provides the detailed description of the tasks of compliance monitors.

4. Following are the guidelines for the account. Note: all functions of the account will be managed with support from the Accounting and Finance Information System (AFIS) (see Supplementary Appendices).

a. Trust Account will be established in a State Bank.2 Discussions have occurred to enlist support from one bank to serve all provinces in mobilizing the concept of a “school trust environment” by supporting the establishment and maintenance of this special account with strict disclosure practices. This includes discussions on the provision of internet banking in order to facilitate open access to information within a system that guarantees no access to actual account manipulation (provides opportunity for daily publishing of all transactions on Trust Account utilization).

b. Trust Account funds will be received by the school through a block grant issued directly by the project to the school (see Indonesian technical guideline for further detail on mechanism of payment e.g. via direct payment, special account, etc.).

1 Ethics and Corruption in Education: Results from the Expert Workshop held at IIEP, Paris 28-29th November 2001:

Halaak, J. Poisson, M. 2 The use of a State Bank will require the loan agreement to include guidelines on the process of nominating such a

bank and the procedures for funds transfer.

138 Appendix 17

c. Trust Account public disclosure processes will enhance broad school and community awareness of decisions, actions and expenditures relative to all project funds.

d. Trust Account will function as an account requiring three signatures (Giro Account) out of four account holders. This will provide for greater control and broad approval prior to expenditures. Trust Account implementation will be managed by an in-school Trust Account Management Team which will include teacher representation from the different in-school units that are to coordinate project inputs (e.g. physical facilities team, staff development team, curriculum and teaching resources team). Such participation is not normal practice. Typically, only the principal and school committee members (and often only a few) act independent of the broader school community.

e. Trust Account Management Team (TAMT) will be chaired by the school project coordinator; vice-chairman will be principal. Membership includes a school committee member, the in-school project treasurer, and a teacher representative. Some schools may also wish to add a Bank representative (as part of the Bank’s community service program) in order to provide greater public disclosure practices.

f. School project coordinators must have a minimum qualification to assume the responsibilities attached to managing the trust account. The scope of responsibility and the executive powers associated with this position must be specified in the loan agreement. Directives from the two key directorates have indicated that final responsibility for school trust account funds must not be the principal nor the central project management unit personnel.

g. Block Grants will also be used as the funding mechanism for the regional training centers (P3G) which will be very active in the International Standards Teacher Certification Program and also the Curriculum Enrichment Program and also a selected number of Provincial Quality Assurance Institutes (LPMP) which will be involved in the School Leadership and Management Program. It is recommended that these organizations will also be obliged to use the same Trust Account and also a broad participatory internal organizational process.

h. To avoid malpractice, all activities and contracts issued using the project funded Block Grant should refer to such agreements as:

• Loan Agreement and MOU • CPCU-Schools/LPMP Block Grant Agreement • Approved School Development Proposal, • Approved School Investment Proposal • Approved Annual Plan • and, also current government regulations (Note: if there is a contradiction between

government regulations and loan management practices, these must be resolved via the loan agreement).

i. Trust Account Management Teams will have the authority to reject any activities or contracts if it is not in accordance with the above agreements.

j. To facilitate monitoring and conducting a General Audit, Account Numbers within the Trust Account will differ and be based on the source of funds. In this case, there will be different types of Trust Accounts within a School Trust Portfolio and differing ceilings for expenditure:

Appendix 17 139

• ADB Trust Account (Trust Account RK) for Block Grant funded by ADB using Special Account Fund

• GOI-Trust Account (Trust Account RM) for Block grant funded by GOI using counterpart fund

• Community Trust Account (Trust Account Com) for Block Grant funded by community (Note: this may involved a matching grant mechanism but it is not recommended by the consultant).

• Some schools may choose to create an additional account designated as the Endowment Fund. It is intended to enable schools to accumulate funds for special developments or future plans. It is expected that such a fund will be increasingly recognized by the broader community as a school develops the “trust and respected environment” expected. An example would be donations from alumni are better lodged in this Endowment Fund than sent to the standing account of the school committee which functions without the strict guidelines required in the Trust Account Portfolio.

Note : RK – Rekening Khusus = Special Account (loan fund)

RM- Rupiah Murni = Pure Rupiah (GOI fund) k. To avoid the abuse of funds and as assurance of proper expenditure to the lender, the

type of payment using Block Grant will be arranged through the use of a Third party Contract Mechanism. Under this mechanism, the utilization of the Trust Account will be permitted only if there is a committed payment under an Agreed Contract. There will be an allowance for advanced payment requests made to the schools (same in the case of P3G or LPMP) i.e. using the force account approach.

Third Party Contract Mechanism l. Before a contract is agreed, the contents have to have a signed verification from the

designated program coordinator in the school, P3G or LPMP (e.g. Teacher Coordinator for Science Laboratory Development Program). Such verification requires the co-signature from the in-school project secretary and the project coordinator.

m. To minimize fraud, all payments to a supplier or contractor will be based on a Progress Report evaluated and approved by the in-school program component coordinator (e.g. Science Laboratory Development Coordinator) and the project secretary. The Trust Account Management Team will not authorize payment without such a Progress Report.

n. In the case of payment for goods received, such payments will be made only if the

shipment has been officially approved as “received and in full and good order” – Assets Received Report. All schools will be required to code and assign assets in the Project Designed Asset Inventory – component of the School Management Information and Reporting System (see Supplementary Appendices).

o. It is suggested that to minimize the opportunity for the abuse of funds, project operating

costs at a School (or P3G or LPMP) will be funded only through Counterpart Funds, provided by GOI and accessed via the Trust Account-RM Type Mechanism (see point j above). Under this account type, advance payments are allowed but must be authorized and accounted for through the strict controls of the Trust Account Management Team.

140 Appendix 17

p. Scholarship Payments will be transferred to the school and provided to each student. To avoid and minimize the possibility of funds mismanagement at the school level, this fund will require a separate account number within the Trust Account Portfolio. Compliance monitoring on these funds will be completed by the finance monitor in the Package B Consultancy and also through the CPCU’s Finance Information Support Unit.

Appendix 19 141

SUSTAINABILITY ANALYSIS

A. Introduction

1. The project includes features designed to sustain the project. These are based on input from MONE and from lessons learned from other projects. Also other agencies and procedures are contributors to sustainability. Following is a review of the key areas.

B. Financial Sustainability and Government Policy Affecting Sustainability a. Access to Government Budgets 2. Appendix 20 reviews two options relative to the GOI ability to afford this project. In both cases, the contribution by government can be made without difficulty. the key point is that the investment required is relatively small and shows GOI is committed to the new Education Law 20/2003 that states each district will have a school at international standards.

3. Given the GOI commitment to this project and the fact that districts have indicated strong positive support there is a good possibility that funds will be directed to senior secondary education to improve Indonesia’s standing in the region. During field visits, the PPTA consultants found that districts had already determined the vocational and general secondary schools that would be their designate schools at international standards in response to decrees by the Government so most of the decisions were made prior to knowledge of this project. Therefore, there is a foundation to support and sustain the project.

4. Many districts have indicated a willingness to provide additional funds for the candidate national reference schools. In addition, MONE intends to issue a Memorandum of Understanding with each participating district and each province ensuring that they will commit financially to the selected schools and extend this commitment to post project period. MONE has also agreed to include in the project documents an assurance that, through de-concentrated funds and block grants, a “topping up” allocation will be provided to each NRS that attains international standards to ensure project sustainability. These special allocations will be in addition to the District regular funding support for the school.

C. Project Design Aspects Affecting Sustainability a. School Development Planning Process and Investment Forecasting 5. Each candidate national reference school has been required to complete a comprehensive a progressive 5-year development plan with annual updates that is accompanied by an investment proposal that shows the source of the investment funds required, including the share expected from the project. Over 120 school planning facilitators were trained in the PPTA and these facilitators worked with the candidate schools to prepare the initial plan and to build within each school a team that could continue this task.

6. Than a process of verification occurred where plans were scrutinized to determine the extent to which they followed the project guidelines and any duplication was removed. Directorate officials indicate this is the first time they have engaged in such a detailed planning process and view the process as a positive initial foundation for more systematic and justified resource allocation and realistic target setting and budget justification. Further, they have indicated that this process will be introduced as a key mechanism for districts to adopt so that they develop a longer-term time horizon. Many of the facilitators trained by the PPTA will be employed by MONE as key regional resources persons to nurture the planning process with the project schools and to introduce the system to other schools.

142 Appendix 19

7. Accountability Report: School planning includes an accountability contract where the school commits to annual physical and fiscal targets. This contract is integral to the annual resubmission of the school’s 5-year plan. Failure to honor plan will have an impact on the amount of funds received in subsequent block grants. Schools will build a culture of responsibility as part of project implementation which should impact long term development.

b. District Partnership as Means to Increase Awareness 8. All school plans must be co-signed by the district official for education. Some schools have gone beyond this and involved the district head (Mayor). In addition, within the first project year, a MOU must be signed by school officials, school committee, district and provincial government representatives, and central MONE authorities. This represents a step towards creating greater awareness of the project and the costs of SSE on a regional basis. This kind of socialization will secure greater awareness among district and provincial legislators that will result in increased budget allocations to education, particularly SSE.

9. The project will train District staff to act as monitors of the school planning process which should help them to lead other schools to introduce more systematic planning. Education Law 20/30 prescribes that all funds outside operational expenses must be given as block grants. The school plans will make the process of request and allocation of special funds much more systematic than previous methods of funding requests Realistic planning also will assist education officials to be more precise and to defend their budget requests to the provincial legislature and also to central government for de-concentration funds.

c. School Change Management 10. The project design includes the introduction of a school-based continuous quality assurance program (QA). Each school is required to establish a change management team that is a partnership between the school and the school committee to adopt a broad consultative approach to planning, developing and managing the school. Schools are required to publish career plans for each staff member, a staff development plan, an information and communication technology plan (ICT) and a QA program for Teaching-Learning and School Management. Each of these are intended to dramatically change the culture within the school and move toward a more democratic and autonomous state. Such initiatives are fundamental to schools becoming more resilient, more dynamic, and more capable of justifying their needs within the district, provincial and central political processes.

11. Developing school plans required participation by a large number of school staff and the school committee and some SMKs involved business and industry representatives also. There is a broad consensus among MONE and the schools that this detailed review of the schools’ vision and mission and assessment of priorities and the associated costs is more detailed than anything they have done before thus creating a groundswell of commitment which should lead to more systematic, open, and reasoned school planning and investment accompanied by a greater sense of partnership and improved morale.

d. Fund Management Initiatives to Enable Greater Financial Self-Reliance 12. Block Grants as a Share of Investment Plan: Each school will be the beneficiary of an annual block grant that is predicated on the school’s development plan and investment proposal being endorsed by the district and approved by MONE. The investment program includes external sources of funds as well as project funds. Failure of a school to meet external investment targets will impact the amount of subsequent year block grant allocations. This approach is intended to ensure the schools institutionalize processes that secure sufficient funds for school operations from both government and external sources.

Appendix 19 143

13. Trust Account: Schools are required to establish a separate bank account with separate sub-accounts. All income from the project and all expenditures within each sub-account must be managed through this account and all account transactions require public disclosure. Schools will develop more accountability and a gradual shift in trust and respect will ultimately result in greater commitment from the community. In addition, schools will attempt to establish an Endowment Fund to be used to house donations to the school from external sources that will be similar to the Trust Account whereby all income and expenditures will be publicly declared. These funds will be an important source of revenue as project block grant funds are gradually reduced and will become a sustainable source of funding for all schools. In addition, the transparent disclosure of transactions in both of these accounts will promote greater trust and partnership between the schools and their communities.

14. Gradual Reduction of Block Grant Funds: The project requires schools to assume some financial responsibility independent of the block grants. The design includes the requirement that schools demonstrate greater financial responsibility as the project moves into its latter stages and, commencing in the 4th year, schools will get a reduced block grant allocation based on the assumption that they have developed greater financial self-reliance. This will require monitoring on a school-by-school basis given the myriad of reasons why one school may be better prepared than others to assume this level or responsibility. However, the principle remains a key aspect of project implementation – during the project, schools must demonstrate an increasing ability to secure external funds as the project proceeds. Failure to actually collect the external funds that are stated in the school’s plan – which is a consideration in the block grant award process – will have a negative impact on the subsequent year’s grant allocation. In this manner, schools will focus on sustainability from the start of the project rather than deal with it as an issue at the end.

15. Entrepreneurship: Block grants from the project are contingent on schools securing external funds to force the school planning process to recognize the need for external funds and develop financial self-reliance. The project will provide special training to develop skills and attitudes that support schools and staff to function within an educational as well as a business climate. Integral to this is the requirement that schools develop internal cost-efficiency measures and pro-actively explore avenues for external funds in order to help schools to change their internal culture to create an environment whereby revenue generation is a declared and ‘above board’ process with built in public disclosure processes.

16. Alumni: The school planning process has created a new opportunity for schools to share with others. Each school is required to formally present their plans to other competing schools, the teams of facilitators, and MONE representatives. One outcome is that some schools have identified alumni as a potential external funding source and other schools are following this lead. SMKs have expanded this to include financial contributions from business and industry. Alumni will be key contributors to the above mentioned Endowment Fund.

e. Teachers and Principals as Members of Professional Communities 17. The project design includes the development of certificate programs for teachers in 10 SMA subjects and 10 SMK programs and courses. In addition, there is a certificate program for School Leadership and Management. Initially, these certificates are project recognized. But, the education service delivery organizations for these certificates are the regional education training centers (P3G) and the provincial education quality improvement institutes (LPMP). The intent is to use the existing structure as the vehicle for these programs which has a much stronger likelihood of sustaining the programs produced.

18. The design includes mechanisms for teachers and principals to share information and experiences through a Clearinghouse and to encourage networking between all schools. The

144 Appendix 19

design also includes the development of both local and national associations among teachers and principals. Schools are required to share their experiences with local teachers discussion groups (MGMP) to enable greater professional sharing. Similarly, national reference school principals are to act as lead players in ensuring that their local professional discussion groups (MKKS) also benefit from experiences gained as part of the project. The project also includes support to develop four professional associations (NRS Associations for Mathematics, English, Physics and for School Leaders). These should be a springboard for national initiatives to sustain a commitment to professional alliances. The project requires that all staff who benefit from the certificate programs sign a commitment to continue with the school at the end of their studies to ensure that the investment is retained for the designated school.

19. School cost forecasts are required to include funds required to supply laboratories and to maintain facilities. A preventive maintenance program is a core component of the school leadership program and a part of the teacher certificate program.

C. Other Design Issues Affecting Sustainability a. Number of Schools and School Selection 20. The schools selected for the project are those that already demonstrate high performance standards and a capacity to improve. Both directorates have devoted considerable time to screening schools from a list approximately four times the number currently being discussed. Schools were chosen from districts where MONE considers government officials to be potentially more responsive to the concept and cost of national reference schools and to be more likely to commit to assuming a greater financial share.

21. SMK school selection was dictated by the programs determined by the Directorate as the focus for the project. Six program areas will eventually be chosen but only four were selected as initial priorities with the other two to be determined based on further research.

22. MONE has insisted that only a few schools be chosen as the main focus and these will become the candidate national reference schools – 100 SMA and 60 SMK schools. The intent is to ensure sufficient funds and project resources are directed to these schools so they can improve dramatically and can be exemplars of school improvement suited to Indonesia. This experience will be shared with a limited number of affiliate schools during the project – SMA ‘associate’ and SMK ‘sister’ schools. MONE will use these experiences to conduct a parallel program of school improvement in other SSE schools with non-project based funds. The project therefore is a key pilot initiative for both directorates to introduce broad school improvement programs throughout the country.

b. Program Selection 23. SMA schools will support the national Curriculum 2004 that is being introduced throughout the country. Schools are provided with the syllabus for the new curriculum with individual teachers being responsible for the development of enhanced curriculum materials that will produce instructional materials, lesson plans and courseware that can be used by other schools, thereby enabling the Government to expand and sustain the initiative. In the case of vocational SMK school selection, the four programs selected were chosen because of the high rate of graduate job placement, an expanding demand within Indonesia and a high potential for overseas placements.

c. Staged Program Implementation based on School State of Readiness 24. Schools are required to satisfy a state of readiness contract prior to being fully eligible for block grant funds – a new approach by MONE. Project implementation is governed by compliance. Compliance and accountability have not been cornerstones of previous projects;

Appendix 19 145

nor of the normal development grant allocations that occur within each school year. The project design process has resulted in MONE officials recognizing that these requirements can be operationalized and the project has been designed with the intent of enabling Government to integrate both compliance and accountability as key aspects of school participation and key aspects of increasing the potential for sustainability.

d. Accredited Training and Cadre of Technical Advisors 25. The ad hoc nature of of providing in-service and pre-service education and training is a serious shortfall in education professional development. The project design addresses the in-service issue by accrediting both service providers and individuals to ensure qualified service providers become part of the professional development strategy and thereby start to institutionalize training in a systematic manner rather than follow ad hoc past procedures. 26. To ensure that all training is done in a consistent manner and with common course outcomes and similar curriculum content, the majority of courses will be available through a published Project Catalog of Accredited Courses that includes the names of individuals and agencies that are approved to offer the courses. Schools will be required to use the majority of their block grant funds for these courses, with only a small amount available for schools to choose outside the Catalog. This is to ensure that project funds are expended on known courses taught by known qualified instructors and to help MONE establish a professional development program that is based on consistency in product and process and the provision of courses that can be certified. Additionally, there is a built-in incentive for service providers to excel in order to generate income. It is expected that a firm recommendation from the project’s policy and strategy initiative (Output 4) will be that all education service providers be required to achieve ISO certification. In this way, these establishments will become better recognized and able to sustain both the quality of product, image recognition and reputation. 27. One aspect of project design is to develop a cadre of qualified regional education advisors to ensure that professional services can be available without the high travel costs. Project Output 4 encourages MONE to continue to work with these advisors after project completion. Options include attaching them to the P3G and LPMP and supporting them to become small consulting companies that are key outsource enterprises for district, provincial and central education managers. Blending the commercial education service delivery aspects of an education system along with the internal government structure could provide an important mechanism to sustain quality professional development programs. 28. The project design includes the side benefit of universities adopting methods and approaches introduced by the project since many of the advisors are from universities. There are many new initiatives introduced in this project and these will gradually be introduced in pre-service training for teachers. Changes in the professional education programs are needed and the project can be viewed as one vehicle for enabling this initiative. 29. A key aspect of the project is to assign the design and delivery of the staff development program to existing MONE agencies to develop an in-house capability rather than relying on third party contracts that do not provide continuity of service, consistency or quality. MONE regional training centers are the main source of this education provider service (P3G). In addition, the provincially based education quality institutes (LPMP) are also a key organization involved in the design and delivery of the School Leadership and Management Certification Program and also the school continuous quality assurance program. Support to these existing agencies will provide for much greater opportunity to sustain the professional development program introduced through the project.

146 Appendix 19

e. Evaluation and Research 30. The project supports the assessment of school improvement models, documenting those that are successful, and disseminating the experiences to other schools. Additional project research studies that are integral to establishing a sound foundation for SSE development include a sub-sector analysis, student tracer studies and education finance. Each of these initiatives constitutes an important step in laying the foundation for sustainable change providing the results are integrated into a policy and strategy development process. f. Policy and Strategy Articulation 31. The project design enables broad exchange on SSE among district, provincial and central authorities, including legislators responsible for the political processes of education development and budget allocation. The dialog will include participation from professional associations, NGOs, as well as university staff and business/industry representatives. This project can be a catalyst for a consolidated and sustained SSE development policy and strategy and for a momentum for GOI to address further its social planning and development process. It is anticipated that the initiative can be considered key to sustainable changes in the system and in the attitudes toward SSE.

Appendix 19 147

ENVIRONMENTAL ASSESMENT

(To be completed at Fact Finding)

148 Appendix 20

FINANCIAL ANALYSIS

The Government’s share in the project is estimated at $78.6 million over six years and will consist mainly of local staff development, domestic consultancy services, incremental recurrent cost due to the project and about 16 percent of the School Development and Investment Program. Two scenarios were prepared to analyze its affordability (i) a “high case” scenario where the Central Government education budget was projected based on the trend of actual budgets from 1999 to 2003; and (ii) a “low case” scenario where the education budget remains the same from 2006 to 2011.

The annual share of the Government in the Project cost, together with estimated commitments in another ongoing ADB funded project (Decentralized Basic Education Project (DBEP), was compared to the annual education budget (“high case” scenario) for the years 2006 to 2011. The Government’s annual commitment as a percentage of the education budget ranges from 0.3% to 0.9%, averaging 0.6% over the six-year life of the Project. The Government’s share in the incremental recurrent cost of the Project was also compared to the education budget. The percentage is 0.1% per year from 2006 to 2011.

In the “low case” scenario, the Government’s annual commitment as a percentage of the education budget ranges from 0.3 % to 1.1 %, and averaging 0.6% over the six-year life of the project. The percentage of incremental recurrent cost to the education budget is also 0.1% per year from 2006 to 2011.

In both scenarios, the Government’s annual commitment for the SSSEP and DBEP are deemed affordable. The computations are shown in the following tables.

2006 2007 2008 2009 2010 2011

1. Gov't. Share in SSSEP 7,722 17,840 21,786 14,443 9,272 7,5312. Gov't. Share in DBEP 3,125 3,125 3,125 0 0 03. Total Gov't. Commitments 10,847 20,965 24,911 14,443 9,272 7,5314. Central Gov't.Education Budget b/ 2,338,947 2,494,737 2,650,526 2,806,316 2,962,105 3,117,8955. % Gov't. Share/Educ. Budget 0.5 0.8 0.9 0.5 0.3 0.6

6. Gov't. Share in Recurrent Cost 1,967 1,967 1,967 1,967 1,967 1,967 7. Central Gov't.Education Budget b/ 2,338,947 2,494,737 2,650,526 2,806,316 2,962,105 3,117,8958. % Gov't. Share/Education Budget 0.1 0.1 0.1 0.1 0.1 0.1a/ High case scenario assumes the education budget will increase based on 1999 to 2003 trend.b/ Source: ADB Key Indicators (1999 - 2003) and projected to Year 2011.

High Case Scenario a/FINANCIAL SUSTAINABILITY ANALYSIS

(US$ '000)

Appendix 20 149

2006 2007 2008 2009 2010 2011

1. Gov't. Share in DSSEP 7,722 17,840 21,786 14,443 9,272 7,5312. Gov't. Share in DBEP 3,125 3,125 3,125 0 0 03. Total Gov't. Commitments 10,847 20,965 24,911 14,443 9,272 7,5314. Central Gov't.Education Budget d/ 2,338,947 2,338,947 2,338,947 2,338,947 2,338,947 2,338,9475. % Gov't. Share/Educ. Budget 0.5 0.9 1.1 0.6 0.4 0.3

6. Gov't. Share in Recurrent Cost 1,967 1,967 1,967 1,967 1,967 1,967 7. Central Gov't.Education Budget d/ 2,338,947 2,338,947 2,338,947 2,338,947 2,338,947 2,338,947 8. % Gov't. Share/Education Budget 0.1 0.1 0.1 0.1 0.1 0.1c/ Low case scenario assumes no increase in the education budget from 2006 to 2011.d/ Source: ADB Key Indicators (1999 - 2003) and projected to Year 2006.

FINANCIAL SUSTAINABILITY ANALYSISLow Case Scenario c/

(US$ '000)

150 Appendix 21

ECONOMIC ANALYSIS A. Introduction 1. This economic analysis discusses: (i) that education is important to growth; (ii) how SSE contributes to economic growth; (iii) how this project will contribute to SSE; and, (iv) why the project is worth the investment (rates of return).1

B. Relationship between education and growth 2. The relationship between education and growth is intuitively plausible but difficult to document statistically. The most recent macro-economic models have identified productivity and factor accumulation (capital and labor) as the engines of growth. Improving accessibility to international standard education will address both of these aspects. Productivity is essentially technology and management. A higher quality labor force will allow for better technology and improve management. Capital accumulation is the result of investment. Once again, a better educated labor force will be an incentive for both domestic and international investors.

C. SSE contribution to growth 3. The basis of the demand for SSE-level education is that it serves as preparation for tertiary-level education and employment. As preparation for direct entry into the labor force, SSE allows workers to capture substantial wage premiums given broader knowledge and skills, particularly those relative to technology applications. It also enables future workers to reap the greater benefits from a tertiary-level education.

D. Project contribution to SSE 4. The quality of a labor force is a complex combination of formal education and skills-based training, and informal characteristics such as motivation, discipline, problem solving and decision making skills, inter-personal relations, English capability, willingness to learn and “teachability” (learning skills). Not all of these are taught in school, but the institutional culture of the school helps to engender these attitudes and values. Creating the culture and values of international schools in Indonesian SSE will contribute to these intangible qualities of an internationally competitive labor force.

5. In addition to providing international standard educational content, as well as institutional culture of the school, the project will also create support networks for sustainability of the international standards created by the project and models for post-project replicability by the Indonesian government and private sector education providers.

E. Economic analysis 6. Conventional economic analysis for projects compares benefits generated by the project to costs of producing the benefits. The IRR is the theoretical interest rate which makes the flow of benefits equal to the flow of costs. In order to calculate IRR, two pieces of information are necessary: annual costs for the project lifetime (project implementation period) and annual benefits for the period during which benefits will be received – usually much longer than the project lifetime. These two series of monetary values are then discounted to the present (net present value/NPV). The interest rate at which the NPVs of benefits and costs are exactly equal is the IRR.

7. In order to calculate the IRR, data on wage (or income) differences is the key data required. This data does not exist for the types of benefits which will be generated by this proposed project. The project will produce SSE graduates at international standards. Some of 1 For a more comprehensive analysis see Annex I, Detailed Economic Analysis.

Appendix 21 151

these graduates will go directly into the labor force, where they will earn a wage premium over SSE graduates who do not have international standard qualifications. Some of the project SSE graduates will proceed on to tertiary education. Upon graduation from tertiary, the project graduates will earn a wage premium over tertiary graduates who did not have international standard SSE.2 The Indonesian Bureau of Statistics does not collect data on what kind of school the worker respondents graduated from, i.e. international standard or domestic standard. So, at this time, it is not possible to calculate an IRR for this project.

8. Given that the flow of benefits can not be calculated, the alternative is to complete a reverse cost-benefit. Such an analysis does not “reverse” the cost-benefit calculation. Rather, it takes the basic IRR calculation, which is a three-term equation with two known values and one unknown value, and switches one of the known values for the unknown value:

(known) Costs <> (known) Benefits (unknown) IRR becomes (known) Costs <> (target) IRR (unknown) Benefits

In other words, given the (known) calculated flow of costs for the proposed project, how many benefits would be required in order to achieve the target IRR? This level of required benefits can then be compared to actual conditions to determine whether it is “reasonable” to expect the benefits to be achieved.

Project Feasibility Calculations

9. The project feasibility calculations are presented in three sections: (i) assumptions; (ii) results; and (iii) sensitivity analysis.

a. Assumptions 10. International standard SSE graduates who go on to tertiary will have a different flow of benefits than those who go directly into the labor force because they will enter the labor force after a 4-year delay. Therefore the streams of benefits are calculated separately.

11. Students will not acquire benefits on the first day of the project. There is approximately one year of preparatory activities (primarily design of training courses, etc.) and at least one year of training before any benefits are actually experienced at the level of the school. Students graduating in the first 2 years of the project will experience all of their SSE education before any substantive benefits appear in the school. So they will not acquire benefits from the project. Benefits will begin to be acquired only by students who graduate in the 3rd year of the project (and they will acquire only 10% of the total potential benefit). Full benefits will be acquired only by graduates in the last year of the project.

12. Benefits are also not eternal. In the best case, the international standards will be disseminated to other SSE schools; in the worst case, the international standards will gradually be dissolved back into the status quo. In either case, the competitive advantage (wage increment of graduates) of project schools relative to other SSE schools will eventually begin to decline. This analysis assumes that the full competitive advantage will be retained for 2 years post-project (until after the Bank’s project completion report) and then will decline to zero over a period of 10 years.3

13. ADB target IRR = 12%

2 Note that, if the project SSE graduates who continue on to tertiary do not command a wage premium over tertiary

graduates who were not from international standard SSE, then the project benefits have been wasted. 3 Details of cost and benefit flows can be found in Appendix 21, Economic Analysis.

152 Appendix 21

14. Graduate’s working life = until age 52.4

15. The following additional assumptions are made:

(1) Total bank loan = US$ 180,182,000 . Flow of costs per year:

Year 1 2 3 4 5 6 Spending

(proportion) 0.098 0.227 0.277 0.184 0.118 0.096

(2) Number of schools = 160 (3) Average graduates/school/year = 119 students, based on Indonesian statistics (4) Proportion of graduates who continue on to tertiary = 2/3 = 79, based on Indonesian

statistics (5) Proportion of graduates who go directly into the labor force = 1/3 = 40

Acquisition of benefits: Year 1 2 3 4 5 6 Proportion of full benefits 0 0 0.1 0.4 0.7 1 Year 7 8 9 10 11 12 Proportion of full benefits 1 1 0.9 0.8 0.7 0.6 Year 13 14 15 16 17 18 Proportion of full benefits 0.5 0.4 0.3 0.2 0.1 0

b. Results 16. The wage premia required appears to be feasible. Following is the review for tertiary and SSE graduates:

o for tertiary graduates: $362/year = Rp. 301,667/month

o for SSE graduates who go directly into the labor force: $205/year = Rp. 170,883.5

• The premium required for tertiary graduates is 20.17% over the current average monthly wage for tertiary graduates of Rp. 1,495,352.

• The premium required for SSE graduates is 19.20% over the current average monthly wage for SSE graduates of Rp. 889,732. Note also that the base wage of SSE graduates plus the wage premium is still only 70% of the base wage for tertiary graduates.

4 This is an example of a “pessimistic” assumption because it assumes that graduates who go on to university move

into the labor force at age 22 and work for 30 years. Graduates who move directly into the labor force at age 18 then work for 34 years. Project graduates who work longer than the assumed lifetime will require smaller wage premia in order to make the project feasible.

5 The SSE premium is smaller than the tertiary premium, even though there are only 1/2 the number of graduates, because the benefits begin to accumulate immediately after graduation from SSE. Benefits for tertiary graduates are delayed 4 years.

Appendix 21 153

17. Given that these levels of wage premia are realistic and quite achievable, the project is judged to be economically feasible.

c. Sensitivity analysis 18. Three types of sensitivity tests are run: (i) changes in the distribution of SSE graduates between tertiary and labor force; (ii) project cost overruns; and (iii) delay in benefits.

19. If all SSE graduates go on to tertiary, then all costs are allocated to tertiary graduates. Similarly if all SSE graduates go directly into the labor force, then all costs are allocated to working graduates. Because the calculations are based on a graduate per capita allocation of both costs and benefits, changes in the distribution of graduates between tertiary and the labor force have no impact on wage premia, and therefore no impact on project feasibility.

20. If the project costs increase by 10%, they translates directly into a 10% increase in required wage premia. Again this is because the calculations are based graduate per capita allocation of both costs and benefits so changes in costs translate directly into changes in required benefits.

21. If accumulation of benefits is delayed by one year, without compensating extension, full benefits will occur in years 7 and 8 and the decline beginning in year 9 as in the base case, then the wage premium required for SSE graduates who go on to tertiary is $437/year = Rp. 364,167/month and the wage premium required for SSE graduates who go directly into the labor force is $247/year = Rp. 205,833/month. This represents an increment of 21% over the wage premium required in the base case. Delay in benefits has a very detrimental effect on the feasibility of the project

Design Alternatives Considered

22. The first alternative to any proposed project is to do nothing. This is not an acceptable alternative for both economic and non-economic reasons. Law 20/2003 concerning the National Education System requires the government to establish international standard schools, at all levels, in all districts throughout the country. Parliament is exerting substantial pressure on the government to comply with the provisions of the law – which, in turn, reflects social and political pressures being channeled through the democratic process. International standard SSE does exist, but it is not accessible to the mainstream of Indonesian society nor is it integrated into the National Education System. External assistance is required to develop options for increasing accessibility to international standard SSE and the support network required for sustainability.

23. Increasing access to national standard SSE by building new schools or expanding existing schools is not a viable alternative for achieving the impact and outcome of the project. Increasing access to national standard SSE is welfare regressive under current Indonesian circumstances and the GOI’s main priority for SSE (in both the current medium-term/5-year plan and MONE’s Strategic Plan) is improved quality, including international standard.

24. Another alternative would be a “conventional” project, which assists selected schools to move to international standard through teacher training, improved facilities and teaching materials, etc. This alternative has consistently proved to have low replicability (caused by the lack of resources which necessitated the project financing intervention in the first place) and to be unsustainable (cf. Lessons Learned).

25. The project as designed meets these constraints in two ways. First, it will try out various alternatives for raising existing SSE schools to international standard and develop alternative mechanisms and proven processes which are efficient and effective for a variety of existing conditions, within the school and the surrounding environment. Second, it will develop a

154 Appendix 21

supporting network of third party service providers, who will enable sustainability for the international standard schools developed by the project and for the successive replicators.

Justification of Vocational Programs 26. The justification of vocational programs covers the 4 priority programs already decided: (i) advanced automotive; (ii) hotel and restaurant; (iii) food processing and food technology; and (iv) ICT.

27. The general criteria used for selection of priority programs were a high rate of graduate job placement, an expanding demand within Indonesia and a high potential for overseas placements. The specific justification for advanced automotive is growth of the sector which will create demand and for hotel and restaurant is income opportunities; in other words, for individual benefits to graduates. The specific justification for food processing and food technology is employment and multiplier effects and for ICT is forecast demand; in other words, for social benefits to the national economy and society.