project appraisal document (pad) - world bank€¦ · kkg kelompok kerja guru (peer working group...

FOR OFFICIAL USE ONLY Report No: PAD3292

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED LOAN

IN THE AMOUNT OF US$250 MILLION

TO THE

REPUBLIC OF INDONESIA

FOR THE

REALIZING EDUCATION'S PROMISE: SUPPORT TO INDONESIA'S MINISTRY OF

RELIGIOUS AFFAIRS FOR IMPROVED QUALITY OF EDUCATION

June 5, 2019 Education Global Practice East Asia And Pacific Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective: April 30, 2019)

Currency Unit = Indonesian Rupiah (IDR)

IDR 15,000 = US$1.00

FISCAL YEAR

January 1 - December 31

Regional Vice President: Victoria Kwakwa

Country Director: Rodrigo A. Chaves

Senior Global Practice Director: Jaime Saavedra Chanduvi

Practice Manager: Tobias Linden

Task Team Leader(s): Noah Bunce Yarrow, Ratna Kesuma

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ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank

AKSI Asesmen Kompetensi Siswa Indonesia (Indonesia student competency assessment)

BAN-SM National Accreditation Bureau for Schools and Madrasahs

Bappenas Badan Perencanaan Pembangunan Nasional (Ministry of National Development Planning)

BOS Bantuan Operasional Sekolah (School operational grants)

BOSDA Biaya Operasional Sekolah Daerah (Local school grants)

BPK Badan Pemeriksa Keuangan (State Audit Agency)

BPS Badan Pusat Statistik (Central Bureau of Statistics)

BSNP Badan Standar Nasional Pendidikan (National Education Standards Body)

CPD Continuous Professional Development

CPF Country Partnership Framework

DA Designated Account

DG Director General

DIPA Daftar Isian Pelaksanaan Anggaran (annual budget)

DLIs Disbursement-linked Indicators

ECOP Environmental Code of Practice

EMIS Education Management Information System

e-RKAM Rencana Kerja dan Anggaran Sekolah Penerima BOS di bawah Kemenag Berbasis Elektronik (MoRA’s Electronic Performance-based Planning and Budgeting System)

e-RKAS Rencana Kegiatan dan Anggaran Sekolah berbasis Elektronik (MoEC’s Electronic Performance-based Planning and Budgeting System)

ESS Environmental and Social Standard

FM Financial Management

FMA Financial Management Assessment

GDP Gross Domestic Product

GRM Grievance Redress Mechanism

GRS Grievance Redress Service

GTK Directorate of Teachers and Education Personnel

HCI Human Capital Index

IBRD International Bank for Reconstruction and Development

ICT Information and Communication Technologies

IEQ Indonesia Economic Quarterly

IFR Interim unaudited Financial Report

INOVASI Innovation for Indonesia’s School Children

IPF Investment Project Financing

IsDB Islamic Development Bank

KKG Kelompok Kerja Guru (Peer Working Group for primary teachers)

KKM Kelompok Kerja Madrasah (Peer Working Group for Madrasah Directors)

KSKK Kurikulum, Sarana, Kelembagaan dan Kesiswaan (Curriculum, Facilities, Institution and Student Affairs) of madrasah

LKPP Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah

LMP Labor Management Procedures

MA Madrasah Aliyah (Madrasah Senior Secondary)

MGMP Musyawarah Guru Mata Pelajaran (Peer Working Group for Jr and Sr Secondary Teachers, Subject-based)

MI Madrasah Ibtidaiyah (Madrasah Primary Level)

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MoEC Ministry of Education and Culture

MoF Ministry of Finance

MoRA Ministry of Religious Affairs

MTs Madrasah Tsanawiyah (Madrasah Lower Secondary)

NES National Education Standards

OECD Organisation for Economic Co-operation and Development

PDO Project Development Objective

PISA Programme for International Student Assessment

PMA Peraturan Menteri Agama (MoRA Regulation)

PMU Project Management Unit

POM Project Operations Manual

PP Procurement Plan

PPK Dedicated Commitment Officer

RPJPN Rencana Pembangunan Jangka Panjang Nasional (Long-Term National Development Plan)

RPJMN Rencana Pembangunan Jangka Menengah Nasional (Mid-Term National Development Plan)

SCD Systematic Country Diagnostic

SD Standard Deviation

SEP Stakeholder Engagement Plan

SP2D Surat Perintah Pencairan Dana (payment order)

SPAN Treasury Information System

SPM Surat Perintah Membayar (payment request)

SPSE Sistem Pengadaan Secara Elektronik (Government e-Procurement system)

STEP Systematic Tracking of Exchanges in Procurement

TASS Technical Assistant for Education Systems Strengthening

TIMSS Trends in International Mathematics and Science Study

TOR Terms of Reference

TVET Technical and Vocational Education and Training

UKG Uji Kompetensi Guru (Teacher Competency Assessment)

UN Ujian Nasional (National Exam)

UNESCO United Nations Educational, Scientific and Cultural Organization

UNESCO UIS UNESCO Institutes for Statistics

WB World Bank

WDR World Development Report

The World Bank Realizing Education's Promise: Support to Indonesia's Ministry of Religious Affairs for Improved Quality of Education (P168076)

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TABLE OF CONTENTS

DATASHEET .......................................................................................................................... vi

I. STRATEGIC CONTEXT ...................................................................................................... 1

A. Country Context................................................................................................................................ 1

B. Sectoral and Institutional Context .................................................................................................... 2

C. Relevance to Higher Level Objectives ............................................................................................... 9

II. PROJECT DESCRIPTION .................................................................................................. 10

A. Project Development Objective ..................................................................................................... 10

B. Project Components ....................................................................................................................... 10

C. Project Beneficiaries ....................................................................................................................... 14

D. Results Chain .................................................................................................................................. 16

E. Rationale for Bank Involvement and Role of Partners ................................................................... 17

F. Lessons Learned and Reflected in the Project Design .................................................................... 17

III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 19

A. Institutional and Implementation Arrangements .......................................................................... 19

B. Results Monitoring and Evaluation Arrangements......................................................................... 19

C. Sustainability ................................................................................................................................... 20

IV. PROJECT APPRAISAL SUMMARY ................................................................................... 21

A. Technical, Economic and Financial Analysis ................................................................................... 21

B. Fiduciary .......................................................................................................................................... 23

C. Legal Operational Policies ............................................................................................................... 24

D. Environmental and Social Risks and Impacts ................................................................................. 24

V. GRIEVANCE REDRESS SERVICES ..................................................................................... 26

VI. KEY RISKS ..................................................................................................................... 26

VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 29

ANNEX 1: Implementation Arrangements and Support Plan ................................................ 35

ANNEX 2: Detailed Project Description ................................................................................. 52

ANNEX 3: Economic and Financial Analysis ........................................................................... 63

ANNEX 4: Relationship between National Education Standards (NES) and Accreditation Standards ............................................................................................................................... 67

ANNEX 5: Sector Context – Additional Information .............................................................. 69


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DATASHEET

BASIC INFORMATION BASIC_INFO_TABLE

Country(ies) Project Name

Indonesia Realizing Education's Promise: Support to Indonesia's Ministry of Religious Affairs for Improved Quality of Education

Project ID Financing Instrument Environmental and Social Risk Classification

P168076 Investment Project Financing

Moderate

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)

Expected Approval Date Expected Closing Date

26-Jun-2019 31-Dec-2024

Bank/IFC Collaboration

No

Proposed Development Objective(s) To improve the management of primary and secondary education services under the Ministry of Religious Affairs (MoRA).


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Components Component Name Cost (US$, millions)

Nation-wide implementation of electronic school-based performance budgeting system and grants to schools

125.00

Implementation of a national, census-based student assessment in fourth grade 31.80

Policy and continuous professional development for teachers and education personnel of MoRA schools

61.40

Strengthening of systems to support quality improvement 31.80

Organizations Borrower: The Republic of Indonesia

Implementing Agency: Ministry of Religious Affairs

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 252.50

Total Financing 252.50

of which IBRD/IDA 250.00

Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing

International Bank for Reconstruction and Development (IBRD) 250.00

Non-World Bank Group Financing

Counterpart Funding 2.50

Borrower/Recipient 2.50

Expected Disbursements (in US$, Millions)


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WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025

Annual 0.00 18.32 63.64 91.26 56.80 15.42 4.56

Cumulative 0.00 18.32 81.97 173.22 230.02 245.44 250.00

INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas

Education

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag

Does the project plan to undertake any of the following?

a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF

Yes

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment

Yes

c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Substantial

2. Macroeconomic ⚫ Low

3. Sector Strategies and Policies ⚫ Substantial

4. Technical Design of Project or Program ⚫ Moderate

5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial

6. Fiduciary ⚫ Substantial

7. Environment and Social ⚫ Moderate


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8. Stakeholders ⚫ Moderate

9. Other

10. Overall ⚫ Moderate

COMPLIANCE

Policy Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Environmental and Social Standards Relevance Given its Context at the Time of Appraisal

E & S Standards Relevance

Assessment and Management of Environmental and Social Risks and Impacts Relevant

Stakeholder Engagement and Information Disclosure Relevant

Labor and Working Conditions Relevant

Resource Efficiency and Pollution Prevention and Management Relevant

Community Health and Safety Relevant

Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant

Biodiversity Conservation and Sustainable Management of Living Natural

Resources

Not Currently Relevant

Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional

Local Communities

Relevant

Cultural Heritage Not Currently Relevant

Financial Intermediaries Not Currently Relevant


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NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). Legal Covenants

Sections and Description Section I.A.2 of Schedule 2 to the Loan Agreement The Borrower, through MORA, shall establish, not later than September 30, 2019, and thereafter maintain throughout the Project implementation period, a Project Management Unit (PMU), with a mandate, composition and resources satisfactory to the Bank. Without limitation to the foregoing, the Project Management Unit shall be responsible for day-to-day implementation, management and reporting of the Project.

Sections and Description Section I.A.3 of Schedule 2 to the Loan Agreement The Borrower, through MORA, shall establish, not later than September 30, 2019, and thereafter maintain throughout the Project implementation period, a Steering Committee, with a mandate, composition and resources satisfactory to the Bank. Without limitation to the foregoing, the Steering Committee shall: (a) be chaired by the Director General responsible for Islamic education; (b) include representatives from relevant units/directorates in MORA; and (c) be responsible for, inter alia: (i) providing overall strategic and policy guidance on all activities carried out under the Project; and (ii) facilitating coordination for the implementation of Project activities.

Conditions

Type Description

Effectiveness Article IV.4.01 of the Loan Agreement

The Borrower has adopted the Project Operations Manual in form and substance satisfactory

to the Bank. Type Description

Disbursement Section III.B.1(b) of Schedule 2 to the Loan Agreement

No withdrawal shall be made under category (2) of the eligible expenditures until the

Borrower has adopted the Grants Manual in form and substance satisfactory to the Bank.


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I. STRATEGIC CONTEXT

A. Country Context 1. Indonesia is a large and diverse country. With 261 million people (Susenas 2017, Badan Pusat Statistik (BPS)),

Indonesia is the fourth most populated country in the world and the third largest democracy. It is both teritorially the

largest and the most populated country in Southeast Asia. Indonesia’s system of government is highly decentralized,

but it is a decentralized unitary state and not a federal system. Indonesia is a diverse country, with 300 distinct ethnic

groups, and over 700 languages and dialects. This diversity extends to religion: 87 percent of the total population is

Muslim, while other major religions include Protestant (6.9 percent), Catholic (2.9 percent), Hindu (1.7 percent), and

Buddhist (0.7 percent). Indonesia is classified as a lower middle-income country, with a gross national income per

capita of US$3,540 (2017).1

2. Indonesia is governed through a tiered system of central ministries, provinces, and districts. About 53 percent

of total government spending—excluding subsidies and interest payments—is conducted by subnational governments,

with district governments managing about 38 percent, and the remaining 15 percent of government spending managed

by provinces.2 There are 34 provinces and 514 districts, as well as several specially designated subnational regions. Law

No. 25/1999 on Local Governance and Fiscal Balance began the process of decentralization for most public services,

while religion, foreign relations, and other functions such as defense, remained centralized as per Law No. 32/2004 on

Regional Government and Law No. 33/2004 on the Fiscal Balance between Central Government and the Regions.

3. Indonesia has seen strong growth and job creation over the past decade, supporting poverty reduction but

with high levels of inequality. Since 2000, Indonesia has had a strong record of economic growth. With an average

growth rate of 5.3 percent,3 total Gross Domestic Product (GDP) has more than doubled since 2000, though continued

pressure from current global economic volatility increases downside risks. The national poverty rate more than halved

to 9.8 percent from 1999 to 2018 (BPS, 2018)—the lowest level recorded. However, the rate of poverty reduction has

decreased.4 The number of people considered vulnerable (i.e., those between the poverty line and 1.5 times the

poverty line) in 2017 was 20.8 percent of the population, mainly due to a lack of productive employment and

vulnerability to shocks. Inequality increased from 30 points in 2000 to 41 in 2013 as measured by the Gini coefficient—

by far the fastest widening of inequality seen in East Asia. However, inequality has since started to decline and reached

39 points in 2017.5

4. Improving governance and outcomes in education are government priorities given the central importance of

human capital to economic growth and the fundamental right to education enshrined in the Constitution of

1 Kewarganegaraan, Suku Bangsa, Agama, dan Bahasa Sehari-hari Penduduk Indonesia: Hasil Sensus Penduduk 2010. BPS. 2011. https://bit.ly/2h40yWa and World Development Indicators database. World Bank. 2018. https://data.worldbank.org/indicator/ny.gnp.pcap.cd 2 Indonesia Economic Quarterly, World Bank. 2017. http://pubdocs.worldbank.org/en/657051513163708686/IEQ-Dec-2017-ENG.pdf 3 GDP Growth Annual, Trading Economics. 2018. https://tradingeconomics.com/indonesia/gdp-growth-annual 4 Statistics News, BPS.2018. https://www.bps.go.id/pressrelease/2018/07/16/1483/persentase-penduduk-miskin-maret-2018-turun-menjadi-9-82-persen.html 5 Poverty and Equity Brief, World Bank. 2018. http://databank.worldbank.org/data/download/poverty/33EF03BB-9722-4AE2-ABC7-AA2972D68AFE/Global_POVEQ_IDN.pdf

http://pubdocs.worldbank.org/en/657051513163708686/IEQ-Dec-2017-ENG.pdf


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Indonesia. The country’s current Human Capital Index (HCI) score is 0.53, reflecting low levels of learning, specifically

7.9 learning adjusted years for 12.3 expected years of education, among other challenges.6 There is a high degree of

commitment by the Government to improve Indonesia’s human capital. The Government adopted human capital

development as a key priority in January 2018.

5. The government budget has doubled over the past 15 years in tandem with economic growth, benefiting all

sectors, particularly education. From 2003 to 2018, the government budget more than doubled in real terms. Growth

of the government budget, coupled with a constitutional mandate to allocate 20 percent of the budget to education,

expanded education resources significantly. The overall education budget grew threefold in real terms during this 15-

year period, increasing to IDR 492.5 trillion (US$32.8 billion) in 2019.7 Some of this education spending explicitly

targeted poor households, for example Program Indonesia Pintar, a monthly allowance for poor households to defray

education expenses.

B. Sectoral and Institutional Context 6. The education sector in Indonesia is the fourth largest in the world. Law No. 20/2003 on National Education

System and the 1945 Amendment III to the Constitution emphasize that all Indonesian citizens have the right to

education, that the Government has an obligation to finance basic education without charging fees and reaffirm the

constitutional target of allocating at least 20 percent of the Government’s budget to education. In 2017, a total of 53.1

million students attended formal pre-tertiary education, up from 43.3 million in 2001. The Net Enrolment Rate8 is 97.1

percent for primary, while lower secondary is 78.3 percent and upper secondary is 60.2 percent (Central Statistics

Bureau [BPS], 2017). There are about 263,700 schools of all types in Indonesia, of which 172,800 are primary, 55,900

lower secondary, and 35,000 upper secondary.9

7. The 53 million Indonesian children enrolled in formal education attend either public or private schools overseen by the Ministry of Education of Culture (MoEC) and the Ministry of Religious Affairs (MoRA), with 15 percent (8 million) of all primary and secondary students enrolled in schools administered by MoRA. At 64 percent, the majority of primary and secondary schools in Indonesia are public, serving 37 million children, while private schools serve 16 million children (MoRA Education Management Information System (EMIS), 2017, MoEC Statistik Pendidikan 2017/18) (Figure 1). However, private schools make up 92 percent of all schools under MoRA, accounting for 12.6 percent of the Indonesian pre-tertiary student population. Schools under MoRA’s authority are legally required to deliver the same national curriculum as schools under MoEC, although the number of teaching hours of religious instruction is higher in MoRA schools.

6 Human Capital Index and Components, World Bank. 2018. https://www.worldbank.org/en/data/interactive/2018/10/18/human-capital-index-and-components-2018. ‘Learning adjusted years’ means that students who attend on average 12.3 years of education are only expected to cumulatively learn the equivalent of 7.9 years. 7 All conversions of US dollars are made using the 2019 national budget assumption of IDR 15,000 per US$1.00. 8 Total number of students in the expected age group for a given level of education enrolled in that level, expressed as a percentage of the total population in that age group (UNESCO UIS, 2018). 9 Statistik Pendidikan 2017/18 (MoEC, 2018) and Statistik Pendidikan Islam 2015/16 (MoRA, 2017)

https://www.worldbank.org/en/data/interactive/2018/10/18/human-capital-index-and-components-2018

https://www.worldbank.org/en/data/interactive/2018/10/18/human-capital-index-and-components-2018


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Figure 1: Proportion of students in MoEC and MoRA public and private schools

Primary School Students

Secondary School Students

Source: EMIS 2018; Statistik Pendidikan Indonesia 2017/2018. Note: Secondary school students consist of junior secondary students and senior secondary students.

8. The population distribution of children from zero to 18 years of age is slightly higher for males than females.10

We therefore expect higher levels of male enrolment in school, given their greater representation in the population,

and this is what the administrative data show at the primary level. Administrative data indicate that 54 percent of

MoEC public primary students registered in formal education administration systems are male. This disparity

disappears by junior secondary level, where males make up 50 percent of the student population. By upper secondary

level, due to higher rates of dropout, males represent only 43 percent of the public MoEC school population (Statistik

Pendidikan Indonesia, 2017/18). This higher female enrolment rate in the later stage of secondary education is similar

with MoRA administrative data, but MoRA starts with a greater level of equity between males and females. Boys make

up 52 percent of the primary student population in MoRA private schools and 51 percent in public primary schools

(extracted from MoRA EMIS 2017/18). In private senior secondary MoRA schools, boys make up 46 percent of the

student population but only 37 percent of the public senior secondary population (Figure 2). This female advantage

carries over into student learning, where girls outperform boys on Programme for International Student Assessment

(PISA), the Trends in International Mathematics and Science Study (TIMSS), and Ujian Nasional (UN) scores.11 It is

interesting to note that the national household census reports that girls are enrolled at higher rates across all levels of

education.12

10 Indonesian National Statistics, 2010 Census https://sp2010.bps.go.id/index.php/site/tabel?tid=262&wid=0 accessed Feb 24, 2019 at 12:32 PM. 11 OECD; IES-NCES; authors’ calculations from Puspendik Ujian Nasional Score, 2018. 12 This ‘female advantage’ in enrolment at the primary level from household survey data is not reflected in administrative data from MoEC and MoRA. Perhaps parents over-report enrolment rates when surveyed, or some non-formal schools contribute to overall enrolment numbers - but these are not captured in the administrative data. The issue of lower levels of female enrolment in the primary level could be explained by enrolment in non-formal education. The high dropout levels in the secondary level are also cause for concern, particularly among boys, though this challenge is common among middle-income countries globally and in the region (Growing Smarter, World Bank, 2018).

https://sp2010.bps.go.id/index.php/site/tabel?tid=262&wid=0


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Figure 2: Number of male and female students in MoEC and MoRA schools

Source: Statistik Pendidikan Islam 2015/16 and Statistik Pendidikan Indonesia 2015/16.

Learning Outcomes

9. While student learning levels are generally low, Indonesia has managed to improve its performance slightly—

as measured by international assessment tests—while the education system has expanded. Indonesia’s PISA scores in

all subjects improved between 2012 and 2015, with the largest movement in science (from 382 to 403), followed by

math (from 375 to 386), and reading (from 396 to 397). This slight improvement is an important achievement, as

countries often show declines in learning as student enrolment increases. Indonesia’s PISA score is at the level

expected based on estimates of public expenditure per student (Indonesia Economic Quarterly (IEQ), 2019). However,

learning levels remain low in absolute terms, with 55 percent of 15-year-old students scoring below level 2 on the

reading section of PISA. This low level of learning means that the education sector is not fulfilling its potential in

contributing toward long-term human capital and economic growth.

10. In addition to international examinations such as PISA and TIMSS, Indonesian students take national

examinations in 9th and 12th Grades. Scores for MoEC public and private schools at the 9th Grade level are the same (52

out of 100 for the UN 2017), though private MoEC school students did worse in the 12th Grade examination than their

public MoEC counterparts (40 out of 100 for private vs. 45 for public school students) (Figure 3). A similar pattern

between public and private service providers occurs in MoRA schools, where public and private student scores are

about the same in 9th Grade but, for the end-of-secondary examination in 12th Grade, private schools scored a full 10


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points lower than public schools in 2017. This discrepancy between public and private schools has been increasing with

the progressive introduction of computer-based assessments, which have increased the integrity of examinations and

test-taking. Slightly under 13 percent of the Indonesian student population is served by private institutions under MoRA

for primary and secondary. While some MoRA private schools are at the top of the learning distribution, this improving

performance is necessary to meet the Government’s human capital objectives.

Source: Calculated from Puspendik MoEC 2016-18.

Equity

11. MoRA enrolls economically vulnerable students at a higher rate than MoEC and has a higher proportion of

females. While the aim of the education policy and financing structure is to increase equity and decrease dependence

on parental contributions for education, poor households13 still spend an average of IDR 91,00014 (US$6.5 and 32

percent of per capita expenditure of poor households) per month to send a child to primary school.15 While there is

significant local variation, educational costs for MoRA schools tend to be lower on average than for MoEC schools

(Permani, 2011; Parker & Raihani, 2009). Using data from Susenas, Indonesia’s national household socioeconomic

survey, and village census records, Asadullah and Maliki (2018) find that “madrasahs systematically attract children

from poorer households, rural locations, and less educated parents”. Children are 2.4 percentage points more likely to

enroll in MoRA schools in rural areas than in urban areas. Girls are 11 percentage points more likely to be in a MoRA

school than boys, all else being equal. Furthermore, they find that MoRA schools in Indonesia enroll higher-than-

13 Poor households are defined here as those with per capita expenditure below the poverty line as defined by Badan Pusat Statistik (Central Bureau of Statistics). 14 Susenas 2015. 15 Toward a Comprehensive and Effective Social Assistance System in Indonesia. World Bank 2018.

Figure 3: National exam results for 12th Grade, MoRA and MoEC schools (public and private)


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expected numbers of the poorest of the poor, namely low-income households living in rural areas (Asadullah & Maliki,

2018).

12. Gender equality broadly exists among education personnel at the school level. At the primary education level

(MI), the majority of teachers are female (58 percent), while at the lower secondary level (MTs) and the upper

secondary level (MA), the majority of teachers are male (51 and 53 percent, respectively). One additional dimension of

equity relates to school directors, where only 22 percent are female.16

Quality of MoRA Teachers

13. MoRA currently provides very limited continuous professional development (CPD) of teachers, school

directors, and supervisors, and does not measure its effectiveness in terms of improving performance of schools and

students. There is strong global evidence showing that good teachers are core to ensuring quality education.17 The

2018 World Development Report (WDR) Learning to Realize Education’s Promise makes a strong case for the centrality

of teachers, including teachers’ skills, motivation, and the importance of quality teacher-learner interaction.18 The

Indonesian context is no different.19 Existing research points to the many challenges of teacher quality in Indonesia.

Indonesia has a large and diverse cadre of teachers, and the evolving education system and reforms introduced further

complicate the challenges of teacher quality. A 2010 World Bank report20 identified several concerns regarding student

learning outcomes in Indonesia and teacher quality was identified as a key determinant of learning outcomes. Levels of

knowledge, skills, and performance, together with relatively low levels of educational attainment of teachers,

contribute to low learning outcomes.21 Coupled with gaps in pedagogical competency and challenges with teacher

absenteeism, the challenge to educational quality is clear. The need to invest in teachers, at multiple levels, is also

clear.22 One of the key investments needed is CPD, or in-service training.23

14. In addition to high quality and effectively supported teachers, all schools require quality leadership from their

directors.24 Research in the Indonesian context points to the critical role of directors, particularly in the context of

16 MoRA. Statistik Pendidikan Islam 2015/16. 17 Masino, S & Nino-Zarazua (2016). What works to improve the quality of student learning in developing countries? International Journal of Educational Development, 48 (May): 53-65. Sayed, Yusuf, Ahmed, Rashid and Mogliacci, Rada (2018). The 2030 global education agenda and teachers, teachi ng and teacher education. In: Verger, Antoni, Altinyelken, Hukya K and Novelli, Mario (eds.) Global education policy and international development: new agendas, issues and policies, 2nd edition. Bloomsbury, London, pp. 185-208. ISBN 9781474296014. 18 The World Bank (2018). World Development Report. Learning to realise education’s promise. Washington D.C.: The World Bank Group. 19 Afkar, R, deRee, J, Khairina, N (forthcoming). Who Learns What in Basic Education: Evidence from Indonesia. World Bank; Chu Chang, M; Sharffer, S; Al-Samarrai, S; Ragatz, AB; de Ree, J & Stevenson, R (2014). Teacher Reform in Indonesia. The Role of Politics and Evidence in Policy-Making. Washington D.C.: The World Bank. 20 World Bank (2010). Transforming Indonesia’s Teaching Force (Volume 1: Executive Summary). Jakarta: The World Bank Office Jakarta. 21 Ibid.; see also Afkar et al. World Bank forthcoming. 22 Chu Chang, M; Sharffer, S; Al-Samarrai, S; Ragatz, AB; de Ree, J & Stevenson, R (2014). Teacher Reform in Indonesia. The Role of Politics and Evidence in Policy-Making. Washington D.C.: The World Bank. 23 Ibid. pg. 187. 24 Branch, G.F; Rivkin, SG & Hanushek, E.A (2013). School Leaders Matter. Measuring the impact of effective principals. Education Next, 13 (1).


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reforms toward decentralized management, as highlighted in a recent World Bank report on school-based

management in Indonesia.25 The need to invest in CPD for school principals is thus well supported by existing research.

Financing

15. There are some similarities in the financing of schools under MoRA and MoEC but also important differences.

The education system under MoEC is highly decentralized, while MoRA is a centralized ministry. Most school costs

under MoEC are covered by fiscal transfers from the central level to the district and province levels, some of which are

earmarked for education use. An important example of these transfers is school operational grants, known as Bantuan

Operasional Sekolah (BOS), which are provided to all formal public and private schools on a per-student basis.

16. According to the Government’s BOS Guidelines for Madrasahs,26 BOS is provided to ease the cost burden on the

community in achieving quality education. While government resources available to MoRA schools through BOS have

increased almost 176 percent in real terms since 2005 for the primary and 150 percent for junior secondary education

levels,27 experience shows that many schools lack the capacity to use those funds effectively and efficiently to deliver

better learning outcomes for students.

Quality Assurance

17. Quality assurance takes place through the National Education Standards (NES) and the accreditation process,

though there are weaknesses in each mechanism, and all MoRA and MoEC schools follow the same national

curriculum. More than half of MoRA schools do not meet the required minimum NES. The standards cover eight

areas, namely education content, learning processes, student end-of-grade competencies, teacher and education

personnel, equipment and infrastructure, management, financing, and learning assessment (see Annex 4). Stakeholders

use these standards to measure the attainment of educational quality of a school. The measurement is done in theory

through an annual self-evaluation, though annual results are not readily available. The level of accreditation of a school,

which is directly linked to the level of NES achievement, is measured every five years by the independent National

Accreditation Bureau for Schools and Madrasahs (BAN-SM). MoRA schools conduct a paper-based self-evaluation of

NES achievement using measurement instruments issued by the National Education Standard Institution (Badan

Standar Nasional Pendidikan, BSNP).

18. While schools are required to seek accreditation, not all do. There are two ways to open a private school in

Indonesia. A private foundation may seek permission from civil authorities at the level of the district/city, and receive a

license to operate under the regulatory authority of the district/city, province, and MoEC. The school can be open to all

students or serve a specific religion (for example, Protestant or Hindu). Alternatively, a private foundation may apply

for a license to operate a religious school from MoRA central and will then fall under MoRA’s regulatory authority.

25 Fasih, T & Macdonald, K (2017). School-based management policies in Indonesia and their implementation at the school level. The World Bank and Australian Government. Sumintono, B; Sheyoputri, E.Y.A; Jiang, N; Misbach I.H & Jumintono (2015). Becoming a principal in Indonesia: possibility, pitfalls and potential. Asia Pacific Journal of Education. https://www.tandfonline.com/doi/full/10.1080/02188791.2015.1056595 26 BOS Guideline for Madrasah 2019, Keputusan Dirjen Pendis (Director General Islamic Education Decree) No. 511/2019 dated January 25, 2019. 27 BOS unit cost is IDR 117,500 and IDR 162,250 per student per year in 2005 and is IDR 800,000 and IDR 1,000,000 per student per year in 2019, in primary and JSE level, respectively.

https://www.tandfonline.com/doi/full/10.1080/02188791.2015.1056595


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Regardless of which ministry the school operates under, the operating license allows the school to function indefinitely,

but schools are required to seek accreditation from BAN-SM as per Law No. 20/2003 National Education. In practice,

however, schools can operate for many years without accreditation. Law No. 20/2003 on National Education, Parts 2

and 3, Articles 17, 18 and 36, requires all types of schools, regardless of the regulatory body, to follow the same

national curriculum;28 the current version of the national curriculum was introduced in 2013.

Weak Management and Monitoring systems

19. There is strong commitment on the part of MoRA and the Government to strengthen human capital through

improved management of education services and systems. To improve system outcomes, decision-makers at schools,

and the district, provincial, and central levels of MoRA, need to have essential, accurate, and up-to-date information on

system functionality, including financing, the education workforce, student enrolment, and student learning outcomes.

The current education management information systems operating under the auspices of MoRA demonstrate

commitment by users and operators (those who enter data at the school level) to provide data, as well as high levels of

responsiveness and collaboration when sharing, requesting, and updating data between multiple systems. However,

the overall system and data architecture could be improved by: (i) system integration; (ii) stronger data input; (iii) an

improved enabling environment for operators; and (iv) an improved system data and data quality. MoEC piloted an

online electronic school planning system (Rencana Kegiatan dan Anggaran Sekolah berbasis Elektronik, e-RKAS) in five

pilot areas in 2017 and 2018, with some positive experiences reported, and in 2018, MoRA, with support from the

World Bank and the Australian Government, introduced an Electronic Planning and Budgeting System for MoRA schools

(Rencana Kerja dan Anggaran Sekolah Penerima BOS di bawah Kemenag Berbasis Elektronik, e-RKAM) in 60 schools in

Jombang District and in Yogyakarta Province.

20. Existing systems for storing and managing data rely on infrastructure distributed across the country, including

in potential disaster zones. Indonesia faces multiple climate and geophysical hazards, several of which are expected to

worsen. Floods pose the greatest threat to Indonesians in major urban centers and rain-triggered landslides are

common in rural areas. Sea-level rise threatens 42 million Indonesians who live less than 10 meters above sea level.

Climate change threatens to exacerbate hydro-meteorological risks, such as recurring floods and drought. Both climate

and non-climate hazards have the potential to lead to localized data loss, and make it difficult to implement reliable

disaster recovery policies.

21. MoRA faces key system management challenges in measuring and influencing inputs into its education

production function, as well as systematically measuring essential outputs such as learning at the primary level. It

faces fundamental challenges in its education data systems, and is actively seeking to improve the access and quality of

its teacher and education workforce training programs. Current performance measures are low for the private schools,

which constitute the vast majority of the system, and MoRA risks being left behind the larger MoEC system and failing

to realize education’s promise for contributing to human capital and economic development of the country.

28 According to Peraturan Menteri Pendidikan dan Kebudayaan (Permendikbud), Minister of Education and Culture Regulation No. 57/2015 Attachment 1 Part III.B and Peraturan Menteri Agama (PMA) or Minister of Religious Affairs Regulation No. 912/2013 Attachment Part 1.C.5.a, a standard first-grade class meets for 30 academic hours per week, four of which are devoted to religion. In MoRA schools, a standard first-grade class meets for 34 academic hours per week, eight of which are devoted to religion. While the duration of religious instruction is longer, the subjects that are taught are the same.


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C. Relevance to Higher Level Objectives 22. Realizing education’s promise means reaping the benefits of investments in education for all Indonesians.

Student learning outcomes, as opposed to mere schooling, are associated with increased economic growth and higher

quality of life. Improved education system management is an essential pre-requisite for Indonesia to raise its level of

human capital and increase its overall rate of economic development.

23. The World Bank Group’s Country Partnership Framework (CPF) for Indonesia 2016-2029 highlights the

importance of equality of opportunity, getting reform priorities right, refocusing public administration on better

implementation, and building in more accountability and transparency at the local government level to ensure

better service delivery. There is a strong focus on the importance of working in support of education, which is also in

the Indonesia Performance and Learning Review 2018, which reflects increased priority and demand for human capital

development. Engagement Area 4 of the CPF, Delivery of Local Services and Infrastructure, includes Pillar 2, which

specifically refers to an education project to ensure universal access to education services that meet minimum quality

standards.30

24. The CPF’s focus on universal quality service delivery is closely linked to the priorities of the World Bank’s 2018

WDR on Education, and the East Asia and Pacific 2018 Education Regional Flagship “Growing Smarter,” as well as the

Human Capital Project, which was launched in 2018 in Indonesia. The recently published WDR and the East Asia

Education Flagship both document the learning crisis in middle-income countries such as Indonesia and provide

evidence for improving education systems at scale.31 This evidence informs the proposed project activities, particularly

Indonesia’s current position on the HCI.

25. These same goals are part of Indonesia’s ambitions for the education sector, including MoRA. Current drafts of

the Ministry of National Development Planning (Bappenas) National Mid-Term Development Plan (RPJMN) 2020-2024,

to be finalized and approved in January 2020, include higher levels of school accreditation based on the NES, higher

levels of student enrolment and learning linked to Sustainable Development Goal 4, and higher levels of teacher

certification. MoRA’s planning documents for the next five years (also in draft form) include specific reference to

improved functionality of the education data system, improved access and quality for teacher, supervisor and school

director training, systematic assessment of student learning in primary grades, improved reporting of education

expenditures at the school level, and alignment of school-level budgeting with the NES.

26. The World Bank Group’s goals of ending extreme poverty by 2030 and promoting shared prosperity are

directly related to the objectives of the proposed project. MoRA schools enroll more economically vulnerable students

than MoEC schools. By ensuring that schools served by MoRA receive similar levels of support as those served by MoEC,

the project has a focus on improving educational opportunities for the bottom 40 percent. By increasing equity in

provision of quality educational services, this helps to break the cycle of intergenerational poverty.

29 No. 99172, discussed by the Board on December 5, 2015 30http://documents.worldbank.org/curated/en/195141467986374707/pdf/99172-REVISED-World-Bank-Indonesia-Country-Partnership-Framework-2016-2020.pdf; page 32 31http://www.worldbank.org/en/publication/wdr2018 and https://openknowledge.worldbank.org/handle/10986/29365

http://documents.worldbank.org/curated/en/195141467986374707/pdf/99172-REVISED-World-Bank-Indonesia-Country-Partnership-Framework-2016-2020.pdf

http://documents.worldbank.org/curated/en/195141467986374707/pdf/99172-REVISED-World-Bank-Indonesia-Country-Partnership-Framework-2016-2020.pdf

http://www.worldbank.org/en/publication/wdr2018


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27. This operation is recommended for the gender tag, since it seeks to expand the opportunity for female

teachers to be promoted to school directors, a level at which they are currently underrepresented. The targeted

expansion of opportunity is explicitly tracked in the results framework. Overall, girls outperform boys in the Indonesian

education system in terms of both persistence and achievement as per PISA 2015. Measurements of attainment at the

national level show gender differences, but the differences are small based on analysis conducted for this project

(World Bank, forthcoming) and generally in favor of females.

28. Indonesia’s National Climate Document (2016) identifies the education sector as a key contributor to reducing

risk from climate change, noting: “For 2020 and beyond, Indonesia envisions achieving archipelagic climate resilience as

a result of comprehensive adaptation and mitigation programs and disaster risk reduction strategies. Indonesia has set

ambitious goals for sustainability related to production and consumption of food, water, and energy. These goals will

be achieved by supporting empowerment and capacity building, improved provision of basic services in health and

education, technological innovation, and sustainable natural resource management, in compliance with principles of

good governance.” This project will specifically contribute to improving basic education services by adopting

information technology to enhance climate resilience of the education administration system.

II. PROJECT DESCRIPTION

A. Project Development Objective

PDO Statement

29. To improve the management of primary and secondary education services under the Ministry of Religious

Affairs (MoRA).

PDO Level Indicators

1. Increase in achievement of school-based National Education Standards (NES).

2. Make data on Grade 4 student learning outcomes in three subjects available to teachers in the same school

year that the task is given.

3. Increase access to improved in-service training for primary and secondary teachers and education

personnel.

4. Improve availability and quality of system-wide education data for decision-making.

B. Project Components

30. To fully realize Indonesia’s human capital potential, all students must have access to learning; this is education’s

promise. MoRA’s centralized system provides education services to over 28 million Muslim, Hindu, Christian, Catholic,

Buddhist and Confucian students, as well as studies in Al Quran, Pondok Pesantren, Diniyah, early childhood education


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and tertiary education.32 The allocated 2018 education budget for MoRA was IDR 52.6 trillion (US$3.50 billion), and for

2019 the allocation is IDR 51.9 trillion (US$3.46 billion), a nominal decrease of 1.3 percent. The proposed World Bank

financing package amounts to an average of US$50 million per year, or 1.43 percent of MoRA’s annual education

budget.

31. With the aim of strengthening management33 of education services34 under MoRA, specific investments are

proposed for all roughly 50,000 primary and secondary formal education institutions nationwide under MoRA through

the following components:

- Component 1 - Nationwide implementation of electronic school-based performance budgeting system and

grants to schools.

- Component 2 - Implementation of a national, census-based student assessment in 4th Grade.

- Component 3 – Policy and continuous professional development for teachers and education personnel of MoRA

schools.

- Component 4 – Strengthening of systems to support quality improvement.

32. Component 1 – Nationwide implementation of electronic school-based performance budgeting system and grants to schools (IBRD: US$125.0 million). The project will support the implementation of an electronic performance-based planning and budgeting system (e-RKAM) online and semi-online for all primary and secondary schools under MoRA that receive BOS. The implementation of e-RKAM will allow schools serving primary and secondary students to allocate non-project budget transfers such as BOS and other resources at the school level to achieve the NES. The e-RKAM will also enable the monitoring and provision of support for frontline service providers at the district, provincial and central levels. The project activities under this component have four subcomponents. 33. Subcomponent 1.1: Support the measurement of the achievement of the NES for MoRA schools (IBRD: US$15.6 million). The project will undertake the following activities: (i) develop a school quality scorecard assessment system based on the MoEC’s NES (BSNP) indicators; (ii) train MoRA teams at the central, provincial, and district levels, including supervisors and representatives from MoRA schools on the NES assessment system and on the utilization of these results for planning and budgeting at their education institutions (about 50,000 people); (iii) improve ability of supervisors and the MoRA District and Provincial Offices to assess the NES (about 5,500 people); and (iv) analyze and disseminate district-level results of the NES self-evaluations.

34. Subcomponent 1.2: Support and provide technical assistance to the districts and provinces to analyze and report data based on the e-RKAM (IBRD: US$35.7 million). This will comprise the following activities: (i) train the teams at the central, provincial, and district levels, including supervisors and 150,000 representatives of MoRA schools, on the e-RKAM performance-based budgeting system; (ii) provide technical assistance for the development of an implementation plan of e-RKAM at all MoRA schools; (iii) monitor and provide technical assistance, as required, to all

32 Since a single student may for example attend madrasah in the morning and Al-Qur’an studies in the afternoon, these are NOT unique students and there is some double-counting; 28 million includes enrolment in formal, non-formal and informal education. 33 Management is defined here as the practices employed by those in positions of authority to carry out their responsibilities, such as setting the pace of work, allocating and monitoring the completion of tasks, and administering both human and physical resources (following Adelman and Lemos, ‘Managing for Learning’, forthcoming). 34 Education services are defined as implementation of teaching and learning activities in accordance with the national curriculum.


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MoRA-related education institutions; (iv) provide technical support from central level to provincial- and district-level offices to analyze the school planning and budgeting information.

35. Subcomponent 1.3: School performance grant to incentivize achievement of NES based on the e-RKAM (IBRD:

US$8.0 million). The project will provide incentives for education institutions that successfully implement e-RKAM and

for increased achievement of the NES by schools.

36. Subcomponent 1.4: Provision of grants to under-performing MoRA schools to encourage improved use of

finances to achieve the NES (IBRD: US$65.7 million). Small grants will be provided to the lowest-performing schools to

help them achieve the NES, including medium rehabilitation, and to encourage MoRA to focus on these low

performers, which are important contributors to the current modest level of overall student learning.

37. Component 2 – Implementation of a national, census-based student assessment in 4th Grade (IBRD: US$31.8

million; Government: US$0.25 million). The project will finance the development and introduction of a standardized

examination system at the primary level to support improved service delivery and accountability for formal public and

private primary schools, following a key recommendation of the 2018 WDR, Learning to Realize Education’s Promise.

The first step to improving student learning outcomes across MoRA’s education system is to put in place good metrics

for monitoring whether programs and policies are delivering learning. The project will fund the development, piloting,

and implementation, including distribution, proctoring, correction, and dissemination of a student assessment system

in the form of an age-appropriate competency test to assess student learning outcomes at the 4th Grade level for 100

percent of the about 580,000 4th Grade students. The project proposes to build on the existing Asesmen Kompetensi

Siswa Indonesia (AKSI) program of MoEC, which assesses competencies based on the national curriculum required from

4th Grade students in reading, writing, mathematics and science, adding modifications specific for MoRA. The project

will support 4th Grade MoRA students to take a computer- or paper-based AKSI-type exam at the beginning of the

academic year. The assessment will be developed and piloted at scale in the first year of the project, and then

administered to half of all 4th Grade students in the following project years, such that each fourth-grade class will be

tested twice under the project. The costs of exam administration are expected to be covered by MoRA from its regular

budget allocation prior to project end.

38. To support the development of MoRA’s assessment capacities, training will be provided at the national,

provincial, and district levels to approximately 50,000 MoRA province and district coordinators, school directors and

teachers under this component to provide information about the assessment, its objectives, and how to use the results

to improve student learning. The component will also support the development and implementation of an artificial

intelligence program for test scoring to minimize the time and resources required to correct student exams for over

half-a-million 4th grade students each year. The assessment questions and answers will be returned to students once

they have been corrected and analyzed, so that the students, their teachers, school committees and their parents can

see what competencies students have mastered and in which specific areas support is needed. The analysis results will

help to identify low performing areas and schools in specific subjects, as well as individual students. This analysis will

also serve as input material for teachers in their peer working group activities (Kelompok Kerja Guru, KKG) (linked to

Component 3).

39. Component 3 – Policy and Continuous professional development for teachers and education personnel of

MoRA schools (IBRD: US$61.4 million). Project financing will expand opportunities for teachers and education


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personnel including directors and supervisors of public and private schools to participate in in-service training, while

improving the quality of that training and strengthening the regulatory environment around its implementation. The

project will focus on two broad programs: (i) peer working groups; and (ii) other trainings delivered by the Central and

Regional Training Centers.

40. The project is expected to support training for over 150,000 teachers and education personnel from primary,

junior secondary and senior secondary levels of MoRA schools. This will include training for over 50,000 3rd and 4th

Grade teachers from elementary schools, and 55,000 teachers at the junior and senior secondary levels in the core

subjects of math, language and science. The project will support CPD for about 6,500 private school directors and 3,000

supervisors representing approximately 60 percent of the total number of MoRA primary and secondary education

supervisors.

41. Subcomponent 3.1: Strengthening and expanding access to peer working groups for teachers and education

personnel (IBRD: US$39.0 million). This will include: (i) development and approval of policies, regulations and manual

on in-service training; (ii) needs analysis to identify priority capacity-building needs for teachers and education

personnel; and (iii) scaling up the distribution of block grants to various working groups, namely grade teachers at

elementary schools, teachers of Math, Science and Bahasa Indonesia at Junior and Secondary Schools, counseling

guidance teachers, school directors and supervisors at district, sub-district, and school levels, to facilitate widespread

in-service training in identified areas of need.

42. Subcomponent 3.2: Development, piloting, and rollout of face-to-face in-service training delivered by the

Central and Regional Training Centers. (IBRD: US$5.4 million). This will include training for teachers, school director

candidates, directors, supervisor candidates, supervisors. Women currently make up about 52 percent of MoRA

teachers, but only 22 percent of school directors. This subcomponent will therefore focus on increasing the

participation of women candidates, who have met the administrative requirements for applying for school director

positions. Minister of Religious Affairs Regulation (PMA) No. 58/2007 establishes priority appointment for candidates

who complete the candidate director training. Therefore, this investment is expected to lead to increased numbers of

women qualifying for directorship positions.

43. Subcomponent 3.3: Design and development of key in-service training courses, resources, and materials in

identified areas of need (IBRD: US$4.9 million). This will include: (i) development of high-quality training modules for

counseling guidance teachers, librarians and science laboratory technicians including their roll out using on-line system

of SIMPATIKA (Sistem Informasi Pendidik dan Tenaga ke Pendidikan) and SIMDIKLAT (Sistem Informasi Kediklatan); (ii)

development of an online version of the teacher competency assessment (Uji Kompetensi Guru, UKG) for training; and

(iii) development and distribution via SIMPATIKA and SIMDIKLAT of high-quality educational resources/materials for use

in peer working groups, provincial in-service training events, and as stand-alone online learning courses.

44. Subcomponent 3.4: Capacity strengthening of key educational personnel (IBRD: US$12.1 million), including: (i)

training of core teachers at the national, provincial and district levels to become key resource persons in the activities

of peer working groups; (ii) development of regulations and technical guidelines for in-service teacher training; (iii)

training for teachers, school directors from remote areas; (iv) training for librarians and laboratory assistants; (v)


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training for inclusive education teachers; and (vi) training for Pusdiklat and BDK trainers (training of Balai Diklat

Keagamaan trainers).

45. Component 4 – Strengthening of systems to support quality improvement (IBRD: US$31.8 million;

Government: US$2.25 million). This component consists of three subcomponents, focused on: (i) strengthening data

systems; (ii) general systems strengthening activities; and (iii) assessments of impact. Together, these activities will

strengthen MoRA’s ability to manage quality improvement and align the education system with learning. A grievance

redress mechanism (GRM) for project-affected persons will also be set up under this component (described further in

Annex 1), and the project will track resolution of complaints and publish relevant key details online.

46. Subcomponent 4.1: Strengthen MoRA data systems (IBRD: US$7.0 million). This subcomponent will finance

shared server infrastructure, disaster recovery capacities and the development of EMIS regulations defining common

identification codes, as well as reestablishment of the core data architecture and improved climate resilience.

47. Subcomponent 4.2: Additional systems-strengthening activities within MoRA (IBRD: US$23.9 million;

Government: US$2.25 million). This subcomponent will support the development of an improved private school

regulatory framework, capacity building for financial management and procurement systems within the Ministry, as

well as Project Management Unit (PMU) financing, among other activities.

48. Subcomponent 4.3: Assessments of Impact (IBRD: US$0.9 million). This subcomponent will support data

collection for two evaluations, one assessing project impact on improving NES, the other on the impact of the 4th grade

student assessment.

C. Project Beneficiaries 49. This project will benefit a total of 300,000 beneficiaries. The primary beneficiaries of this project will be

teachers, directors and supervisors at both public and private MoRA schools: over 50,000 teachers of Grades 3 and 4, as

well as over 55,000 secondary teachers, will receive in-service training supported by the project, as well as 2,500

counsellors, 23,000 school directors, and 3,000 supervisors. In all, more than 130,000 staff of MoRA schools will receive

project-supported CPD. To support this national teacher peer learning group program, more than 24,000 core teachers

will receive intensive training on how to manage and run the teacher peer learning groups using project-supported

learning materials. In addition, every single MoRA school will be trained in, and provided with, management tools that

enable more efficient and effective management of school finances. Separately, intensive residency-based training will

be provided for 3,000 remotely based teachers, school directors and supervisors who are unlikely to be able to access

peer working groups. Training for 700 public school director candidates will also be provided, of which half will be

female. Supervisors and supervisor candidates will also receive training at training centers, 3,000 and 400 respectively.

The project will also finance training for 6,500 private school directors. The residential training program will also

provide training for about 400 inclusive education teachers, 2,000 laboratory technicians and librarians. The key

secondary beneficiary of the project will be the 8 million primary and secondary students attending schools

administered by MoRA, who will benefit from expected improvements in the teaching they receive and in management

of the schools they attend.

50. Additional primary beneficiaries of the project will be MoRA personnel at the district, provincial, and central

levels, who will benefit from the project directly through access to professional development opportunities and


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technical assistance that will equip them with skills and knowledge to be able to do their work more efficiently and

effectively, including about 600 educational personnel operating at the Pusdiklat and Balai Diklats. In addition, they will

benefit over time from improved, real-time access to up-to-date, accurate information on system performance (from

the EMIS, SIMPATIKA, and the Grade 4 examination results) that they will be able to use for planning, decision-making,

and operational purposes.

51. A specific primary beneficiary of the project will be prospective female candidates for the positions of school

director (expected to reach 350 prospective female candidates). As the project includes a specific professional

development focus on expanding the pool of female candidates eligible to apply for these positions, it is expected that

this investment will support improved gender equity at these key management levels.


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D. Results Chain


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E. Rationale for Bank Involvement and Role of Partners 52. The World Bank’s involvement in this project allows the Government of Indonesia to benefit not only from its

technical expertise and global knowledge, but also from effective, proven mechanisms to facilitate high quality

management and oversight of the project, including project supervision and results monitoring and evaluation,

supported by strong governance controls and fiduciary oversight mechanisms. This investment is proposed at the

request of the leadership of MoRA and the Government of Indonesia. It is based on analyses and investigations of the

key challenges limiting the performance of MoRA’s education system to deliver learning to all students.

53. Other partners working in this space including Technical Assistant for Education Systems Strengthening (TASS)

and Innovation for Indonesia’s School Children (INOVASI) programs, both of which receive support from the

Government of Australia and have been successful in small-scale pilots that this project builds upon, particularly in the

field of CPD. However, they are not in a position to assist MoRA for implementation at scale. Other multilateral

agencies such as the Islamic Development Bank (IsDB), have supported MoRA in the past and may provide additional

support in the future. However, this support has focused on, and is expected to continue to focus on, infrastructure

rather than system performance issues. Indonesian mass organizations such as Muhammadiyah and Nahdlatul Ulama

provide services and support for MoRA schools in their networks, but are not generally able to work across political and

religious affiliations.

54. The Australian Government’s Improving Dimension of Teaching, Education Management and Learning

Environment Trust Fund has supported technical assistance essential to the development of this project. Research on

school financing, student performance and teacher practices as a part of the Service Delivery Indicator survey, as well

as research on gender, education data systems and teacher training have informed the design of this project by

revealing those key areas where support was needed and commitment to improvement existed on the side of the

client. Additional technical assistance from New Zealand G2G Know-How directly informed the design of the education

data systems design subcomponent. Other work with MoEC on performance-based budgeting and financing for schools

(e-RKAS) has also directly informed the e-RKAM component, with support from the Australian Government. The World

Bank’s engagement with MoEC on student assessment and teacher training, among other areas, has also supported the

design approach.

F. Lessons Learned and Reflected in the Project Design 55. As noted above, the project draws heavily on recent insights from the WDR 2018 and the East Asia and Pacific

2018 Education Regional Flagship “Growing Smarter.” In addition, as a part of project preparation, the Bank has

conducted face-to-face interviews and document reviews with MoRA staff and international staff who worked on prior

projects. The key findings from this process relevant to the proposed project are summarized below. The World Bank

has also drawn on findings from technical assistance and research conducted by the World Bank and other agencies

such as ACDP (Analytical and Capacity Development Partnership), TASS and INOVASI, as well as engagements with

MoEC, as noted above.


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56. The Asian Development Bank (ADB) produced a Completion Report on the US$50 million ‘Madrasah Education

Development Project’ in March 2014.35 The project itself was effective from 2007 to 2014 and targeted several areas of

MoRA’s education sector. One component financed 800 teachers and 200 principals to receive bachelor’s degrees and

1,200 teachers to undertake training for certification. This objective was partially achieved and, according to the

completion report, financing was shifted to peer working groups in the final years of the project for more than 65,000

teachers, since this alternative approach was more cost effective, more appropriate to address teacher’s specific needs,

and more scalable. This experience has informed the design of this project, which focuses on strengthening and

improving these peer working groups.

57. The third component of the ADB project targeted transition, graduation, dropout and repetition rates of

students through block grants to support remedial programs. The project was largely successful in achieving

improvements through support to teacher training programs, indicating that the expected positive impacts from

teacher training in the proposed project are reasonable. The fourth component focused on school management,

including allocation of funds to meet the NES, which was partially achieved. One of the major limiting factors to project

success and a key forward looking recommendation of the ADB completion report was to improve the EMIS, and the

need to expand opportunities for in-service teacher training (page 15). These recommendations have been taken

forward by the project with a focus on peer learning groups and education data information system components.

58. In the Gambia, a one-time school grant of about US$500 combined with an intervention to improve school

management led to decreased student and teacher absenteeism (Blimpo et al., 2015). In Mexico, a similar type of

intervention (grant and training for the parent associations) led to reductions in grade repetition and grade failure

(Gertler et al., 2012). These grants varied from US$500 to US$700 depending on school size. It is expected that,

providing low-performing schools under MoRA with additional funds to use the online budgeting system to program

additional resources targeted on quality, will help alleviate financial constraints and improve achievement of the NES.

59. The potential of student assessments to improve the quality of teaching and learning is not always realized

(Kellaghan & Greaney, forthcoming; Koretz, 2017). For example, a study in India by Muralidharan and Sundararaman

(2010) found that testing students in Grades 1 to 5 at the beginning of the school year and providing information about

the assessment to the school about one month later had no impact compared with control schools. One interpretation

of this lack of impact is that principals and teachers may have needed more time to experiment and identify their

optimal responses to improve student learning. Following de Hoyos et al., 2017, it may also be that the binding

constraint in Andhra Pradesh is on the extensive margin of principal effort (e.g., attendance) rather than on the

intensive margin of effort (improving productivity, conditional on attendance).

60. There is international evidence on the effects of low-stakes student assessment on improving teaching and

learning. In Mexico, de Hoyos, Garcia-Moreno and Patrinos find an increase in test scores of 0.12 standard deviations

from a low-stakes student exam with diagnostic feedback (2017). From an experiment in Argentina, de Hoyos,

Ganimian and Holland (2017) find that schools provided with diagnostic feedback from student exams in Grades 3 and

5 outperform control schools by 0.34 and 0.36 of a standard deviation in Grade 3 math and reading, and 0.28 and 0.38

of a standard deviation in Grade 5 math and reading. Principals in treatment schools reported higher levels of using

35 https://www.adb.org/projects/37475-013/main


Page 19 of 73

assessment results to inform management decisions, such as setting goals for the school, making changes to the

curriculum, and evaluating teachers. Students in schools receiving diagnostic feedback from the exams were more likely

to report that their teachers assigned and graded homework, explained a topic and used a textbook. The authors note

that diagnostic feedback mostly impacted instruction through the intensive margin of teacher effort, and that

“diagnostic feedback may be sufficient to elicit improvement in the management and instruction of public schools.”

Related evidence of impact of student assessments on student learning is available from Pakistan (Adrabi, Das &

Khwaja, 2014), as well as other contexts (e.g., Rockoff & Turner, 2010).

61. Several operational lessons have also been drawn from multiple multilateral financing projects in Indonesia,

including present and past World Bank education lending operations, particularly relating to delays in project

effectiveness, procurement processes, and decision-making. These lessons have informed the Bank and client’s design

of implementation arrangements, in particular the PMU, to help support MoRA in moving things forward.

III. IMPLEMENTATION ARRANGEMENTS

A. Institutional and Implementation Arrangements 62. The project will be implemented by MoRA with the Director General of Islamic Education as the Executing

Agency Representative (Executive Director). The implementation of the project will be led by a Project Director, a civil

servant named by the Executive Director, Minister and Secretary General. Implementation will be guided by the

Steering Committee, which will be chaired by the Director General of Islamic Education and include Secretary General,

the Project Director and other Directors central to project implementation, including Curriculum, Facilities, Institution

and Student Affairs of madrasahs, or Kurikulum, Sarana, Kelembagaan dan Kesiswaan (KSKK), Directorate of Teachers

and Education Personnel (GTK), Pusdiklat and Planning. The Project Director will be supported in their role by a single

PMU with personnel at the central and provincial levels, staffed primarily by civil servants. The PMU will be supported

by consultants who will provide technical assistance to meet procurement, Financial Management (FM) and Social and

Environmental requirements, and support overall project implementation. Capacity-building will be supported through

training programs provided by experts and training service providers (see Annex 1 for details).

63. Other agencies involved will be MoEC, Bappenas, Ministry of Finance (MoF), State Audit Agency (Badan

Pemeriksa Keuangan, BPK) and the Inspector General of MoRA. MoEC will support the 4th Grade exam under

Component 2 by sharing test items developed for the AKSI exam and their experience in implementing census-based

national exams. Bappenas will monitor the implementation of project activities and the achievement of outcome

targets. MoF will monitor budget execution and disburse funds to MoRA for school grants, peer working group block-

grants and other project financing as part of the loan disbursement process. BPK will audit project financial statements

each year of the project. MoRA’s Inspectorate General will conduct periodic internal audits of project activities.

B. Results Monitoring and Evaluation Arrangements 64. At the project level, the routine monitoring will be carried out by the PMU through compiling administrative

data to compute and update the PDO-level indicators and intermediate-results level targets. An annual report from the

PMU will consolidate project progress information by component and flag any challenges or issues for further

attention. The PMU will monitor implementation and achievement of results framework targets at school, district,

provincial and national levels using sample-based methodologies and, once it becomes functional, the new education


Page 20 of 73

data system. Results and progress toward results will be reported to the Project Director and Steering Committee at

least every six months. This reporting will be reviewed by World Bank supervision visits also at least every six months. It

is expected that Bappenas and MoF will be invited to briefings on progress, achievements, and the challenges to

achieving its objectives.

65. A project mid-term review will be carried out no later than June 2022. The PMU will prepare and share with the

World Bank prior to the mid-term review a report integrating the results of the monitoring and evaluation activities and

progress achieved, and providing recommendations to improve project performance.

66. The project will support data collection for an impact evaluation of the NES improvement incentive under sub-

component 1.2. Data collection for the process evaluation of the census-based 4th Grade student assessment noted in

the component two description will be financed by the project with technical design assistance from the World Bank.

The project will also support an accuracy audit of the education database to verify data accuracy by comparing the data

available in the system with a sample of schools. This audit is expected to focus on essential information such as

numbers of students, teachers, schools and essential learning inputs e.g. textbooks. Detailed information will be

collected on the number of school director candidates trained under sub-component 3.2, disaggregated by gender.

C. Sustainability 67. The investment is assessed as reasonable, necessary, and sustainable. The value of the proposed loan is US$250

million over five and a half years, or an average of US$50 million (IDR 700 billion) per year. This is equivalent to 1.43

percent of MoRA’s 2019 education budget (DitGen Pendis), and roughly equivalent to the amount of the budget

currently allocated for quality improvement. Indonesia’s state budget has increased every year for the past 10 years

and is expected to continue to increase (Indonesia Economic Quarterly, June 2018). National law requires that at least

20 percent of the budget be spent on education. A 1.43 percent increase in MoRA’s education budget is expected to be

sustainable in view of the spending allocation requirement and the assumption of an increasing budget envelope.

MoRA is currently allocated less than 10.5 percent of the 2019 education budget but has 15.3 percent of students in

primary and secondary schools. A more robust education management system that offers improved tracking of both

inputs and outputs, readily available data on system performance, and professional development of its education

workforce—all of which this project plans to support—may attract more public financing and support.

68. The project budget includes some once-off costs, including investments in school budgeting and associated

training, data systems development and associated training, CPD module and materials development, and policy and

regulation development. These cost about US$64.6 million. There are some catalytic investments in the form of

incentive grants that are intended to initiate behavior change but would not necessarily need to be sustained beyond

the project lifetime. These cost about US$42.3 million. The balance of the project costs will need to be sustained after

the project is complete, including costs of professional development, systems maintenance/hosting, and Grade 4 exam

implementation. The estimate of the additional costs to sustain the activities started under the project is US$143.1

million, less than 1 percent of MoRA’s recurrent, non-salary budget. Some of the activities, especially the CPD activities

under Component 3, would need to be scaled up over time to cover the entire system (e.g., all subjects taught in

secondary schools). Project evaluation will provide insight into what it would cost to expand these activities to all

schools, teachers and education personnel.


Page 21 of 73

69. There are several expected improvements in the quality of the Government’s budgetary expenditure as a result

of the project. For example, the training on school budgeting is a catalytic investment in systems and processes that will

improve allocation of existing public education financing at the school level in the year of introduction and continue in

outer years. Likewise, resulting improvements in data should enable more effective decision-making and financial

allocations that will represent savings to MoRA in real terms. The investment will also support student assessment and

teacher training, services that are essential to measure and support system quality.

70. The activities and reforms are considered institutionally sustainable. No new institutions are being created

through the project, rather the emphasis is on strengthening and improving existing MoRA systems and processes.

Although a PMU will be established for the project, it is expected that its functions will be absorbed into the relevant

line functions and departments of MoRA on project completion. This assumption has been discussed with MoRA

leadership, for example the hiring of new civil servant psychometricians under the project using IDR funds will help

ensure that MoRA’s student assessment design and validation capacities will be expanded and able to continue

following project close. However, given the expanded scale of activities, it is expected that this will require the creation

of new positions within those functional departments to sustain activities, at an expected cost equivalent to, or less

than, that of the PMU.

71. The Government’s commitment to this proposed project is high. The Government’s approval process was

initiated when MoRA sent the project proposal to Bappenas on December 11, 2018, and entered into the approved list

of projects for international public investment planning on May 10. All components of the project are consistent with,

and support the implementation of, high level government policy priorities that are unlikely to change over time.

IV. PROJECT APPRAISAL SUMMARY

A. Technical, Economic and Financial Analysis 72. This project focuses on strengthening MoRA’s key management systems and services that are essential to the

long-term quality improvement of schooling and better learning outcomes. While the project will not measure

improvements in learning outcomes from those interventions, each intervention plays a critical role in creating the

necessary conditions for sustained improvements in students’ educational performance. It also uses an integrated

design to ensure that each investment can leverage off the others and thereby maximize effectiveness of spending.

First, the project targets general school improvements in achieving the NES, because these standards have been

identified in MoRA policy as essential requirements for improved school performance. By enabling MoRA schools to

manage their budgets more effectively using the e-RKAM tool and helping both them and personnel at district and

provincial levels to measure achievement of the NES and interpret data effectively to inform ongoing operational and

strategic decisions, it will have the effect of focusing spending toward improved institutional performance. Incentivizing

poor-performing schools to use these tools effectively will help ensure that they are not left behind, as new tools and

systems are implemented.

73. This will be complemented by the implementation of national assessments at the Grade 4 level. Currently,

national assessments are not conducted until Grade 9, which means that any quality improvement initiatives at the

primary school level are not informed by accurate and comparable data on student performance. Unless there is some

reliable measurement of student performance at the primary level, any efforts at quality improvement cannot be


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grounded in an objective understanding of the performance of the schooling system at that level. Conducting

standardized student assessments at Grade 4 level will provide teachers, directors, and supervisors, national trainers,

and relevant lecturers with essential data to be able to understand how effective their classroom practices are at the

primary school level and to plan systematic improvements to those practices based on accurate annual data.

74. However, the project recognizes that measuring school and student performance is of limited value unless it is

accompanied by strong CPD interventions that guide educational personnel to make accompanying changes in their

own professional practices that will drive sustained improvements in performance. Consequently, strong emphasis is

placed on strengthening and scaling CPD systems for teachers, directors, and supervisors to ensure that they learn how

to use these measurements tools and data to improve their management and educational practices, and become

motivated to make those improvements.

75. The project pulls the above interventions together by strengthening key central data systems and the

accompanying regulatory environment to ensure that the investments made can be sustained after the project is

completed. Emphasis is placed on strengthening data systems and online access to accurate, current data at all levels of

the system in recognition of the important, ongoing role that accurate data plays in effective policy, management, and

operational decisions.

76. The design targets 170,000 direct beneficiaries of training and support at the primary, lower secondary, and

upper secondary levels. In addition, all 8 million students are expected to indirectly benefit from the increased

attention to learning in primary, improvements in system management through capacity building, and improved data.

The latest estimates of the rates of return in Indonesia to primary and secondary36 education are robustly positive and

relatively stable across a 12-year period with 10 separate measurements (Montenegro & Patrinos, 2014 and

Psacharopoulos & Patrinos, 2018). Similar to any investment, rates of return to education summarize costs to the

individual of the investment relative to (in this case, wage) benefits, expressed as an annual percentage yield. For

Indonesia in 2010, primary education yielded an annual increase of 12.7 percent in average wages, against 10 and 11.5

percent for secondary and tertiary education, respectively.

77. An economic analysis (detailed further in Annex 3) was undertaken that relies mainly on simulations. This was

done in several steps. First, the anticipated number of beneficiaries was calculated for each project component (see

Section VII of the Project Appraisal Document). Second, the monetized (income) impact of one additional year of

educational attainment was estimated using a linear (Mincerian) rate of return parameter applied to an expected

lifetime of labor force participation based on recent household survey data, with different income-level starting points

by age cohort to predict lifetime income (all in 2019 US dollars). The breakeven point for each component was then

calculated by assessing the change in educational attainment (per beneficiary) that is required to equal the total

(anticipated) project costs of each component.

78. The main finding from the economic analysis is that with so many beneficiaries even with very small changes in

student learning and grade attainment, highly conservative estimates of less than 0.05 years improvement will still pay

36 The estimation papers do not define primary versus secondary education, but it is assumed that secondary includes lower and upper secondary education.


Page 23 of 73

for themselves. The planned direct and indirect number of beneficiaries is in the millions, and small changes in learning

and attainment add up over the course of 20 years or more in the labor force given the substantial returns to each

additional year of attainment (10.7 percent for Indonesia, in Psacharopoulos & Patrinos, 2018).

79. The findings from the economic analysis are robust to changes in assumptions and more conservative scenarios

of the number of beneficiaries, the rate of return to each year of education, the number of years the average

beneficiary will spend in the labor market, and the overall lifetime earnings level. The bottom line is that the sector-

wide approach of the project will reach a very large number of students, so even small changes in attainment and

learning will be cost effective over the long term. Obviously, the greater the changes, the greater the benefit.

80. Over five years, project financing will total IDR 3.5 trillion, while the Government is expected to spend at least

IDR 245 trillion on education under MoRA. This project, representing less than 2 percent of government expenditure on

MoRA education, will contribute to the productivity of the Government’s investment and help Indonesia achieve

improvements in human capital potential. In summary, the project investments in improved management of primary

and secondary education services can leverage improved quality of spending across much larger overall expected

government expenditure.

B. Fiduciary Financial Management

81. A Financial Management Assessment (FMA) was carried out to assess the adequacy of the financial

management system of the implementing agencies to produce timely, relevant, and reliable financial information on

project activities. The FMA also assessed the adequacy of the accounting systems for project expenditures and

underlying internal controls to meet fiduciary objectives and allow the World Bank to monitor compliance with agreed

implementation procedures and progress toward its objectives.

82. The financial management risk is assessed as substantial. The financial management risk is related to the limited

MoRA experience of managing World Bank-funded operations. The risk is also related to the geographically dispersed

project locations. This may create challenges to: (i) monitor and supervise timely budget preparation/revision; (ii)

monitor and supervise budget execution; and (iii) prepare consolidated program financial reports without delays.

MoRA’s financial statements for the past two years, in FY2016 and FY2017, received unqualified opinions from BPK, the

State Audit Agency, meaning that MoRA’s financial statement presented the Ministry’s operations and financial

position accurately according to the accounting standard. This audit report covers all levels of MoRA (central and

regional). However, the audit reports also noted findings related to weaknesses on payment verification in the

purchase of goods and training, workshop and consulting service expenditures, and weaknesses on block grant

administration, which is also one of the types of activities financed by the proposed project. Risk at the school level is

also anticipated in relation with the implementation of the BOS program due to the varying capacity of school staff and

the generally weak oversight of the program.

83. The FMA concluded that, with implementation of the agreed actions, the risks will be substantially mitigated and

the proposed financial management arrangements will satisfy the World Bank’s minimum requirements under the Bank

Procedures October 1, 2018. These are considered adequate to provide, with reasonable assurance, accurate and

timely information on the status of the loan, as required by the World Bank. The project financial management


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arrangements follow the government system as agreed by the World Bank and to be reflected in the Project Operations

Manual (POM), including budgeting, internal control, accounting and reporting, flow of funds, and the auditing

mechanism. The Directorate General of Islamic Education through Directorate of KSKK would coordinate financial

management aspects, including activities executed by GTK, Secretariat General, provincial, and district offices.

Procurement

84. All procurement under the project will be carried out in accordance with the World Bank’s Procurement

Regulations for IPF Borrowers, issued in July 2016, revised in November 2017 and August 2018, and the provisions

stipulated in the Procurement Plan and Project Operations Manual. The Project Procurement Strategy for Development

and the initial 18 months’ procurement plan have been prepared by the PMU, which will be updated at least annually.

Most of the procurement under the Project will entail non-consulting services for event organizers and logistics

support, consulting services for software development and support, goods for servers and laptops, works for school

rehabilitation, and individual consultants to support the PMU and to provide technical expertise required under each

project component. The existing procurement capacity in MoRA to carry out and monitor the procurement under the

Project will be strengthened. Further details are provided under Section IV (Key Risks) and Annex-1 (Implementation

Arrangements and Support).

C. Legal Operational Policies . .

Triggered?

Projects on International Waterways OP 7.50 No

Projects in Disputed Areas OP 7.60 No .

D. Environmental and Social Risks and Impacts 85. In general, the project activities focus on capacity building at the institutional and human resources levels and

will not involve any physical infrastructure. There will be activities related to procurement of ICT to increase

performance of education management systems. The project is not expected to generate significant e-waste. The

potential adverse environmental and social impacts are minimal and there are no significant adverse risks and issues

which are complex, diverse, sensitive and unprecedented. Social risks directly inherent in project activities are generally

moderate.

86. This proposed project is designed to deliver results at the service-delivery level, the level of the district, the

province and at the central ministry. The project will aim to support religious schools, the majority of which are

madrassahs, which follow national curriculum, in improving their performance-based budgeting, new information

management system, as well as increasing the proportion of students who participate in a fourth-grade student

assessment. The Project will not finance activities related to the education curriculum. .

87. The Environmental and Social Standard, ESS1, Assessment and Management of Environmental and Social Risks

and Impacts, is relevant. The project will support activities related to the improvement of: (i) the planning and

budgeting system; (ii) the student assessment system; (iii) teacher competency improvement; and (iv) the education


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data system. None of these activities are expected to result in direct negative social impacts. In view of potential

environmental impacts, project activities will involve provision of small grants to support rehabilitation and repair

works to support learning needs. This type of rehabilitation will involve repair of non- structural building components

and/or repair of roof, ceiling and/or floor of classrooms, libraries and laboratories. No significant environmental

impacts or risks are anticipated as the potential impacts are limited to construction-related activities such as noise,

dust, waste/debris disposal, and safety of workers, which can be managed through standard mitigation measures, and

occupational health and safety measures. A simple Environmental Code of Practice (ECOP) for small works was

developed to guide contractors in managing such impacts. Under Component 4, Improving Education Management

System, there will likely be some activities related to procurement of Information and Communication Technologies

(ICT) software and hardware for central, regional, and district use. However, the project is not expected to generate

significantly more e-waste than would be the case in the absence of the project. Therefore, the environment risks of

the project are considered low. The POM will include some simple technical guidelines (ECOP) on how to handle the

unused equipment (if any), including by recycling, trade in to vendors, or disposal as per Indonesia’s regulations on e-

waste. In addition, efficiency in using energy could also be introduced when they procure and use the equipment

(energy saving personal computers, etc.). Lastly, a training program for the ECOP implementation and procurement for

energy saving equipment and sustainability will be part of the POM, and a training and development plan will be

developed at the central and provincial/district level following the Environmental and Social Commitment Plan.

88. The ESS2, Labor and Working Conditions, will be applied since the project will involve direct workers,

contracted workers (teachers, other school staff, etc.), as well as government civil servants. Community workers will

not be involved in the project. Labor Management Procedures (LMP) have been developed to help MoRA determine

and allocate the resources necessary to address project labor issues. The LMP describes: (i) procedures relevant to each

category of workers involved; (ii) overview of key potential labor risks; (iii) overview of Indonesia’s labor legislation; and

(iv) description of GRM or other mechanisms available for all direct workers and contracted workers.

89. The ESS3, Resource Efficiency and Pollution Prevention and Management, will also be applied, since project

activities will involve: (i) small works relevant to rehabilitation and repair works to support learning needs; and (ii)

procurement of electronic equipment to support the improvement of the education management system. Potential

environmental impacts resulting from small works are limited to some work during construction/repair works such as

air pollution from dust, noise pollution, interruption of utility services and solid waste/debris, as well as potential used

roofing materials which contain asbestos. An ECOP for small works was prepared to guide contractors to manage the

environmental impact. The new electronic equipment will not replace existing equipment as per the project plan.

Therefore, no additional e-waste is expected to be generated as a result of the procurement of ICT goods and services

under the project, as the majority of this procurement is either virtual (for example, data storage space in the cloud) or

software products that do not imply the obsolescence of physical electronics. In the cases where physical ICT

equipment is planned to be purchased, this will expand rather than replace existing capacity and so no e-waste is

expected to be generated as indicated earlier. Sustainable procurement practices will be supported for the

procurement of goods and services. This will include options for more energy-efficient equipment and the availability of

after-sales service for any equipment purchased. The ECOP will be provided in the POM on how to handle the unused

ICT equipment (if any) by recycling, return to the vendor, or to dispose of them properly as per Indonesia’s regulations

on e-waste.


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90. Social risks directly inherent in project activities are moderate. This proposed project will be designed to deliver

results at the service-delivery level, the level of the district, the province, and at the central Ministry. The project will

aim to support MoRA schools that follow the national curriculum in improving their performance-based budgeting, new

education management information system, as well as creating a new 4th Grade census-based exam. The project will

not finance any activities related to the content of the curriculum.

91. Social safeguards documents required by the project include Labor Management Procedures (as per ESS2 of

Environmental and Social Framework, Labor and Working Conditions), the Social Assessment using desk review

methods, and the Stakeholder Engagement Plan (the latest draft prepared by MoRA and disclosed on May 28, 2019),

the Environmental and Social Review Summary – Appraisal Stage (prepared by the Bank and disclosed May 28, 2019),

and the Environmental and Social Commitment Plan (prepared by MoRA and disclosed on May 28, 2019). The draft

Stakeholder Engagement Plan (SEP) was prepared to ensure that a consistent, comprehensive, coordinated, and

culturally appropriate approach is taken to stakeholder engagement, and contains a preliminary list of key stakeholders

(such as Cluster Working Groups for Teachers and Principals, Subject Matter Teacher Consultative Group, a group for

MoRA schools principals, etc.). MoRA will also have to ensure that consultations are inclusive and accessible (both

format and location). The draft SEP can be updated, as necessary, throughout the project implementation. A

preliminary design of a GRM was developed as part of the SEP and will be improved based on feedback from project

beneficiaries and stakeholders.

V. GRIEVANCE REDRESS SERVICES

92. Communities and individuals who believe that they are adversely affected by a World Bank-supported

project may submit complaints to existing project-level grievance redress mechanisms or the World Bank’s Grievance

Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address project-related

concerns. Project affected communities and individuals may submit their complaint to the World Bank’s independent

Inspection Panel, which determines whether harm occurred, or could occur, as a result of World Bank non-compliance

with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly

to the World Bank's attention, and World Bank Management has been given an opportunity to respond. For

information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), visit

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information

on how to submit complaints to the World Bank Inspection Panel, visit www.inspectionpanel.org.

VI. KEY RISKS

93. The overall risk rating for the Project is Moderate.

94. The Political and Governance risks are rated substantial, since religious schools are closely identified with the

independent cultural and belief systems of Indonesia, and there is a risk that World Bank financing could be negatively

perceived by some Indonesian stakeholders. The overall engagement is designed to improve sector management and

financial transparency, and support improved learning outcomes in core subjects for education institutions following

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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the national curriculum and already receiving public financing in the form of BOS. The improved regulation, oversight,

and transparency supported by the project can contribute to increased equity in access to education, particularly by

those vulnerable to potential discrimination. This will be addressed by the project through an ongoing social

assessment during implementation and monitoring, to ensure that those who have self-selected to attend religious

education institutions are not socially excluded.

95. The Sector Strategies and Policies risks are rated substantial. While there is strong alignment between the

project investments and the RPJMN) 2020-2024, as well as the Long-Term National Development Plan 2020-2045, a

new cabinet is expected in October 2019, which may have different priorities from those identified with MoRA during

project preparation. To mitigate this risk, the Bank held extensive meetings with Echelon I and II officials at MoRA, as

well as interactions at the provincial and district levels, as a part of the project identification process. These meetings

have shown broad and strong support for the proposed project activities, and this level of support is not likely to

change with a new administration.

96. The Institutional Capacity for Implementation and Sustainability risks are rated substantial. While MoRA

currently executes an annual education budget of US$3.5 billion (2018) and has successfully implemented multinational

loans in the past (ADB, IDB), one of their requests in the project preparation phase has been for capacity strengthening

support at the central and subnational levels. This capacity strengthening is addressed as part of the project the design

and is partially mitigated by the inclusion of a PMU. Relatedly, fiduciary risk is also rated substantial, with both financial

management and procurement functions having little experience of working with World Bank procedures and currently

limited capacity levels, as discussed above.

97. The Fiduciary risk is rated Substantial. The main FM risk is related to the lack of MoRA’s experience in

implementing World Bank funded operations. The Project’s FM would generally follow government systems, including

budgeting, internal controls, accounting and reporting, flow of funds, and the auditing mechanism. Based on

experience from other Bank-financed operations, FM risk is noted in regard to the timeliness of budget availability. Risk

is also noted related to the dispersed locations of project activities that requires strong oversight. Weaknesses on

payment verifications as noted in the previous audit reports of the Ministry also contributes to the project’s fiduciary

risk.

98. Some measures to be implemented in order to mitigate the risks identified above include: (i) PMU decree to be

issued to appoint team responsible for project’s management in the PMU; (ii) financial management specialist(s) to be

recruited and tasked with assisting the PMU in FM aspects of the project, including timely availability of budget,

financial reporting, strengthened payment verification and oversight, and follow-up of audit findings; (iii) a Dedicated

Commitment Officer (PPK) and Assistant Treasurer to be appointed in the PMU to support the proposed project; (iv)

Project Operations Manual to include a manual for incentives and block grants to teacher groups to be developed and

agreed with the World Bank prior to the execution; (v) strengthening of oversight is also considered including

involvement of Inspectorate General of MoRA to include the project in the annual audit plan; (vi) the annual audit of

the project will be conducted by BPK; and (vii) training on FM aspects of World Bank-funded projects will be given to

PMU staff.


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99. The procurement risk under the project is rated substantial due to: (i) the lack of previous experience of MoRA

with the World Bank’s Procurement Regulations; (ii) low capacity for carrying out procurement of the nature and size

expected under the Project, and (iii) the lack of systemic monitoring and evaluation of procurement and contract

performance. These risks will be mitigated through a range of strengthening measures, including: (i) MoRA will engage

a qualified procurement consultant to work with the PMU, guide and provide training to the Procurement Service Units

and Procurement Officers under the Project, and the Bank will provide supplementary support by delivering training on

the Bank’s Procurement Regulations for IPF Borrowers; and (ii) mandatory use by PMUs of the Bank’s online

procurement planning and tracking tool, Systematic Tracking of Exchanges in Procurement (STEP), with quarterly

procurement performance reports to be submitted to the Project Steering Committee and the Bank, identifying any

bottlenecks and proposed remedial actions. The Bank will provide guidance and support with procurement supervision

missions in the field conducted at least twice per year, including prior review of the large value, strategic, or critical

contracts, and ex-post review of at least 20 percent of the remaining contracts.

.


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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY: Indonesia Realizing Education's Promise: Support to Indonesia's Ministry of Religious Affairs for Improved Quality of Education

Project Development Objectives(s)

To improve the management of primary and secondary education services under the Ministry of Religious Affairs (MoRA).

Project Development Objective Indicators

RESULT_FRAME_T BL_ PD O

Indicator Name DLI Baseline Intermediate Targets End Target

1 2 3 4

Improve the management of primary and secondary education services

Increase in achievement of school-based National Education Standards (NES) (Text)

0% increase n.a. n.a.

20% of schools implementing e-RKAM for at least two years register improved school-level NES achievement.

30% of schools implementing e-RKAM for at least two years register improved school-level NES achievement

40% of schools implementing e-RKAM for at least two years register improved school-level NES achievement

Make data on Grade 4 student learning outcomes in three subjects available to teachers in the same school year that the task is given (Text)

Not available Test development and piloting

45% of MoRA schools participate in 4th grade student evaluation.

90% of MoRA schools participate in 4th grade student evaluation.

95% of MoRA schools participate in 4th grade student evaluation and receive analytical reports in the same school year in which they were tested.

95% of MoRA schools participate in 4th grade student evaluation and receive analytical reports in the same school year in which they were tested.

Increased access to improved in-service training for primary

Improved in-service training not available.

Peer learning groups for teachers, directors, and

4,000 peer working groups receiving grant





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RESULT_FRAME_T BL_ PD O


1 2 3 4

and secondary teachers and education personnel (Text)

supervisors established and training materials developed

and using improved training materials




Improve availability and quality of system-wide education data for decision-making (Text)

Accurate, comprehensive and timely data not available

Accuracy audit conducted

Accuracy audit conducted

Improved score on accuracy audit from baseline

Improved score on accuracy audit from baseline

Improved score on accuracy audit from Year 3

PDO Table SPACE

Intermediate Results Indicators by Components

RESULT_FRAME_T BL_ IO


1 2 3 4

Nationwide implementation of electronic school-based performance budgeting system and school grants

e-RKAM system used by schools for planning and budgeting (Percentage)

0.00 0.00 30.00 60.00 80.00 90.00

Implementation of a national, census-based student assessment in fourth grade

4th grade asessment instruments developed and validated (Text)

No instruments developed

Test items developed and validated



Evaluation of the reliability over time of the national assessment instrument

Test items revised as necessary and validated

Teachers informed of student test questions and scores in same academic year test is given (Percentage)

0.00 0.00 0.00 75.00 80.00 85.00

Policy and CPD for teachers and education personnel of MoRA schools

New in-service training materials for peer learning groups developed and made

New in-service training materials not available

In-service training materials developed and piloted for all peer

In-service training materials refined and implemented.

All in-service training available online

All in-service training available online

In-service training materials for peer learning groups made


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RESULT_FRAME_T BL_ IO


1 2 3 4

accessible (Text) learning group types accessible to 12,000 groups

Increased access of females to school Director candidate training (Number)

0.00 0.00 50.00 150.00 250.00 350.00

Teachers and education personnel trained (Number)

0.00 0.00 50,000.00 100,000.00 150,000.00 150,000.00

Strengthening of systems to support quality improvement

MoRA policy on EMIS developed, approved and implemented (Text)

Not available EMIS policy drafted EMIS policy approved EMIS policy implemented

Unique identifiers for key data entities defined and applied across key systems (Text)

No Unique identifiers for key data entities defined in EMIS policy draft

Definition of structural changes needed to implement unique identifiers for EMIS and Simpatika

Enact structural changes needed to implement unique identifiers for EMIS and Simpatika made

Data protocols for use of unique identifiers by other MoRA data systems approved

EMIS and Simpatika use unique identifiers for key data entities

Resolution of complaints related to project activities is established, updated, and key information is placed on the project website (Yes/No)

No Yes Yes

IO Table SPACE

UL Table SPACE

Monitoring & Evaluation Plan: PDO Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

Increase in achievement of school-based Improvement in Annual EMIS Analyzing school PMU, PMP Team -Dit.


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National Education Standards (NES) achievement of NES is on previous year's results. NES include 8 elements (see Annex 3), five of which are largely under the control of the school (content, process, student competency, school management, evaluation) Beneficiaries are the schools that implement e-RKAM. Targets are cumulative.

starting in Y2

budget and systems; verification of a random sample of schools

KSKK

Make data on Grade 4 student learning outcomes in three subjects available to teachers in the same school year that the task is given

Year 1 is for preparation and piloting. 25,000 is the approximate number of primary MoRA schools with grade four classrooms in Indonesia. Targets are cumulative.

Annual from year 3.

Reports from district offices

Analysis of reports

PMU

Increased access to improved in-service training for primary and secondary teachers and education personnel

MoRA guidelines require five meetings per year for peer learning groups. Targets are cumulative.

Annual

SIMPATIKA

Review data

MoRA Dit. GTK

Improve availability and quality of system-wide education data for decision-making

Accuracy audit percentage of missing values, uniqueness of students

Biennial

Education data system

Accuracy audit

PMU

ME PDO Table SPACE


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Monitoring & Evaluation Plan: Intermediate Results Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

e-RKAM system used by schools for planning and budgeting

School beneficiaries is the school receiving e-RKAM intervention in that year. Targets are cumulative.

Annual

e-RKAM reports

Analyzing reports

PMU and Dit.KSSK, Subdit kesiswaan

4th grade asessment instruments developed and validated

Test items will strive for comparability across years.

Annual

Sub. Dit. Kurikulum dan Evaluasi

Report review

PMU

Teachers informed of student test questions and scores in same academic year test is given

Participating schools are those that have a 4th grade class participating in the exam for that year. Targets are cumulative.

Annual starting year 3

School committee reports and direct analysis (evaluation)

Analysis of reports

PMU

New in-service training materials for peer learning groups developed and made accessible

Accessible can either be online or in print

Annual

Dit. GTK

Analyzing reports

PMU

Increased access of females to school Director candidate training

Increased access of females to school Director candidate training. Targets are cumulative.

Annual

SIMDIKLAT

Data review

PUSDIKLAT

Teachers and education personnel trained

Teachers and education personnel attending in-service trainings through peer working groups and face to face training. Targets are cumulative.

Annual

SIMPATIKA

Report review

Dit. GTK


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MoRA policy on EMIS developed, approved and implemented

This is MoRA EMIS Policy that is available online and accessible by all key players involved in and responsible for management of data at every level of the system

Annual

ICT Unit

Analyzing reports

SesDitGen, PMU

Unique identifiers for key data entities defined and applied across key systems

These are unique identifiers for education personnel, schools, and students that are allocated once and can be used systematically to track that data entity across all MoRA systems without requiring modification over time

Annual

MoRA Education data systems

Audit

PMU

Resolution of complaints related to project activities is established, updated, and key information is placed on the project website

Citizen Engagement indicator.

Annual

GRM

Review reports

PMU

ME IO Table SPACE


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ANNEX 1: Implementation Arrangements and Support Plan

COUNTRY: Indonesia

Realizing Education's Promise: Support to Indonesia's Ministry of Religious Affairs for Improved Quality of Education

Component 1: Nation-wide implementation of electronic school-based performance budgeting system and

grants to schools, Implementation arrangements

1. The BOS is governed by its own operations manual, which has been updated and improved every year since

2005. In 2013, the Government also started to provide the BOS to senior secondary and vocational secondary

schools. The BOS program disburses block grants to all schools, both public and private, throughout Indonesia based

on a per-student formula. Funds are directly channeled to the schools, which empowers school managers by allowing

them to choose how to best allocate the BOS grants. Some local governments also utilize their own budgets to

allocate local school grants, called the Biaya Operasional Sekolah Daerah (BOSDA). The local BOS is given to a public

or private school depending on the local government’s own policy.

2. An online school planning system was created by the Education Office in Surabaya, East Java, to simplify the

approval process of school plans and budgets, Rencana Kegiatan dan Anggaran Sekolah Berbasis Elektronik (e-RKAS).

Using the e-RKAS online application, the Head of Education Office at Surabaya could monitor, analyze, and approve

the RKAS and reporting through the application. Subsequently, the e-RKAS application was developed and

introduced to all schools in DKI Jakarta supported by the World Bank. In 2017 to 2018, the e-RKAS and the use of the

NES as the target to be achieved was piloted in MoEC schools in five areas. According to MoEC, there has been some

positive experience in implementing and using e-RKAS in pilot areas. The development of e-RKAS provides an

opportunity to the schools also to develop, store, and manage schools plans, as well as to monitor the

implementation of school activities.

3. Starting in 2018, the World Bank introduced an Electronic Planning and Budgeting System (e-RKAM) in 60

MoRA schools in Jombang District and in Yogyakarta Province. At the beginning of the academic year, the process of

planning and budgeting at a school commences with self-evaluation to rate its performance against criteria derived

from the eight NES that leads to the generation of an overall self-evaluation score. Through this process, schools

identify areas of strengths and weakness, which also helps them to prioritize areas of weaknesses that they would

want to address. Schools then use this information to identify the targeted standards to be achieved at the end of

that academic year, as well as the four-year NES targeted standards. The targets are also used by the schools to

develop their annual work plans and their budgets for the following year with the aim of elevating school

performance. As part of this system, schools set out performance agreements as ‘documents of promise’ with both

the district- and provincial-level education authorities, with their achievements being evaluated on an annual basis.


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4. The school planning and budgeting process also includes all budget resources received by the school,

including the BOS from the central government (which is the main resource for almost all MoRA schools), the BOSDA,

the school committee funds (including tuition fees), and other school income. As stated in BOS Guidelines for

Madrasahs, 2019, Chapter II: BOS Implementation, MoRA’s Provincial Offices can also monitor the fees that are

collected by the schools and any contributions from the public/parents to ensure that the funds are managed in

accordance with the principles of non-profit, and are transparent and accountable. MoRA Provincial Offices can also

cancel any fee that is collected by schools if it is cause for public concern (such as too expensive tuition fees).

5. As part of the electronic planning and budgeting process, each school’s work plan and budget is input into

the online school planning application (e-RKAM). This application makes ‘needs-based’ budgeting possible, as its

structure consists of the eight NES, the three major expenditure categories, as well as the 13 eligible expenditures

under which activities, sub-activities, components and prices are arranged (Figure A1.1). The system also promotes

‘value-for-money’ spending through the use of a goods and services local catalogue, built into the system, to ensure

that standard costs for goods and services are used by all schools.37

6. There are four major outputs from the e-RKAM system that schools can use: (i) an activity plan, which is an

annual plan classified by the NES, three major expenditure categories, and 13 eligible expenditures; (ii) a spending

plan, which articulates planned monthly expenditure on budget items; (iii) a budget expenditure document, which

allows schools to monitor their expenditure against the annual plan and can be used for reporting purposes; and (iv)

a school asset management report.

7. By way of checks and balances, the e-RKAM system enables the receipt of BOS funds to be conditional upon

submission of a spending plan by schools, as required in the BOS guidelines (the system can be readily monitored by

MoRA district/city/provincial education offices). In terms of making the process more transparent and increasing

accountability, through the e-RKAM, education officials at MoRA will be able to: (i) monitor the submission of school

plans and budgets; (ii) examine progress in the implementation of these plans; (iii) analyze the realization of planned

expenditures; (iv) review the assets of the school; and (v) assess the achievement of targeted NESs.

8. Considering the effectiveness of the e-RKAM system after its introduction in 2018, currently, MoRA is also

piloting the e-RKAM system using its own funding in all 34 provinces. In addition, with technical support from the

World Bank, MoRA has already trained 34 groups of MoRA Provincial Office staff to be the trainers at the province

level and will train school personnel in about 2,000 schools in these areas in 2019. During the self-funded pilot

period, the MoRA team will work to improve the e-RKAM system, as well as its guidelines, so that the improved

system can be implemented in the first year of project implementation in 2020.

37 The composition and prices in the goods and services catalogue issued by local government are reviewed annually by them.


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Figure A1.1 e-RKAM Structure – illustrative example

Input Structure: School input activities and budget in the system

Planning Output: School print output of e-RKAM

Output 1: 8 National Standard

Output 2: 3 type of

expenditure

Output 3: BOS type of expenditure

1. Content

2. Infrastructure

3. Competency

of graduates

4. Financing

5. Education &

educational

Personnel

6. Management

7. Education

evaluation

8. Process

1. Personnel

Expenditure

2. Good and

services

expenditure

3. Capital

expenditure

1. Library development

2. Stationaries

3. Power and services

4. Enrolment activities

5. Learning &

extracurricular

6. Evaluation

7. School management

8. Teacher and staff

development

9. School maintenance

10. Teacher fees

11. Learning tools

12. others


Page 38 of 73

Source: Authors’ illustration.

Asset Report. School input for all asset they have and update yearly

9. Taking into account the fact that many schools are located in the remote areas of Indonesia with limited or

no internet connectivity, during the first year of implementation, the project will develop a semi-online e-RKAM

system. In this system, schools can develop their plans and budgets using an off-line system, and every semester, the

file(s) will be sent to the MoRA district office to be uploaded on to the e-RKAM.

Semi Online to accommodate areas with less connectivity Basically, the structure of e-RKAM will be used in semi online is similar. The steps are as follows:

Input school Asset

1. Asset name

2. Specification

3. amount

4. date of

procurement

5. condition

School Asset Report

Asset reconciliation at district level

1. Asset name

2. Specification

3. amount

4. date of

procurement

5. condition

1. Asset name

2. Specification

3. amount

4. date of

procurement

5. condition

School download the Application

School Input to e-RKAM (offline)

School upload (synchronize) the inputted e-RKAM

District Recap uploaded e-RKAM

from Madrasah

MoRA Recap uploaded e-RKAM from

Madrasah


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School Self Evaluation 10. The school self-evaluation forms for MoEC and MoRA schools were developed directly in line with the NES.

The NES is assessed and calculated for each school at least once every four years and is used for the accreditation of

schools.

11. The instruments to measure the NES at MoRA schools will be developed by an assigned team consisting of

National Senior Teachers and MoRA School Supervisors by simplifying the instrument issued by BSNP.38 The team will

work in consultation with the Lembaga Penjaminan Mutu Pendidikan, or the education quality assurance institution

of MoEC. The MoRA school self-evaluation instruments will be developed so that they are directly in line with the

instruments used for school accreditation in Indonesia.

Performance contract

12. All schools will sign a performance contract. The targeted standards that need to be improved are the

standards within the school’s scope of activities and include: (i) education content (implementation of curriculum);

(ii) learning process; (iii) learning assessment; and (iv) school management. Schools are free to set the targets in

relation to each of the NES. In other words, there is no specific level expected to be reached by the schools.

13. Planning and budgeting that is based on an analysis of gaps in achieving standards will ensure that the

resources are focused and prioritized to improve areas of concern. The focused plans and budgets will gradually

support the achievement of the school targets. With performance-based contracting coupled with online monitoring

and evaluation, in time, the schools will be encouraged to achieve the targets set for improved performance.

14. Component 2 – Implementation of a national, census-based student assessment in 4th Grade (IBRD:

US$31.8 million; Government: US$0.25 million). A standardized examination system at the primary level will

support improved service delivery and accountability for formal public and private primary education institutions,

following a key recommendation of the 2018 WDR, Learning to Realize Education’s Promise. The first step to

38 This will be done under the coordination of Sub-Directorate of Student Affairs and Institution Development of the Directorate General of Islamic Education (Ditjen Pendis).


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improving student learning outcomes across MoRA’s education system is to put in place good metrics for monitoring

whether programs and policies are delivering learning. The project will fund the development, piloting, and

implementation, including distribution, proctoring, correction, and dissemination of a student assessment system in

the form of an age-appropriate competency test to assess student learning outcomes at the 4th Grade level for 100

percent of the about 580,000 4th Grade students. The project proposes to build on the existing Asesmen Kompetensi

Siswa Indonesia (AKSI) program of MoEC, which assesses competencies based on the national curriculum required

from 4th Grade students in reading, writing, mathematics and science, adding modifications specific for MoRA. The

project will support all 4th Grade MoRA students to take a computer- or paper-based AKSI-type exam at the

beginning of the academic year. The assessment will be developed and piloted at scale in the first year of the project,

and then administered to half of all 4th Grade students in the following project years, such that each fourth-grade

class will be tested twice under the project. The costs of exam administration are expected to be covered by MoRA

from its regular budget allocation prior to project end.

15. In parallel, training activities will be provided at the national, provincial, and district levels under this

component to provide information about the assessment, its objective, and how to use the results to improve

student learning. The component will support the development and implementation of an artificial intelligence

program for test scoring to minimize the time and resources required to correct exams.

16. This component will also support implementation of the assessment, including printing and delivering the

instruments, honorarium for test administrators, data entry, and essay scoring. The assessment questions and

answers will be returned to students once they have been corrected and analyzed, so that the students, their

teachers, and their parents can see what competencies students have mastered and in which specific areas support

is needed. The analysis results will help to identify low performing areas and schools in specific subjects, as well as

individual students. This analysis will inform local and national management. This analysis will also serve as input

material for teachers in their KKG peer working group activities (linked to Component 3). The flowchart showing the

process is illustrated in Figure A1.2.

Figure A1.2: Grade 4 student assessment flowchart

Exam question development at MoRA central

level

Central selection, piloting of questions

Paper exam delivered to

schools; where possible computer based tests will be

used

Exam marked at sub-district level

Scores reported electronically to all

levels

Scored exams returned to school

with diagnostic reports

Results inform teaching practice,

supported by teacher training component

Results inform system management,

identifying areas in need of attention


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Component 3: Policy and continuous professional development for teachers and education personnel of

MoRA schools, Implementation arrangements

17. Within MoRA, there are various structures responsible for implementation of CPD. Operating under the

auspices of the MoRA Research, Development, Education and Training Agency (Balitbang Diklat), the first of these is

the Pusdiklat. Based on Ministry of Religion Regulation No. 42/2016, the main task of the Pusdiklat is to develop

technical policy, and conduct education, training and development of technical education and religion staff in

accordance with government regulations (at national level). The Pusdiklat has two types of Diklat (training), which

are Diklat Khusus and Diklat Umum. There are 216 Diklat Khusus for subject-matter teachers at all levels (MI, MTs,

MA). Diklat Umum focus on pedagogical matters such as the 2013 curriculum, academic writing, and education

evaluation. In 2018, Pusdiklat trained 1,128 teachers (of whom 687 were women), 30 MoRA school directors (of

whom nine were women), 90 director candidates (of whom 28 were women), and 60 supervisors (of whom 15 were

women).

18. Below the Pusdiklat are regional training centers known as Balai Diklat. There are 14 such centers, meaning

that some have to cover multiple provinces. They are responsible for formulating the vision, mission, and policies of

the Balai, organizing training of administrative staff and technical personnel services in the field of religious

education and training, preparation and presentation of reports on the results of the implementation of the duties of

the Balai, and coordination with other organizations/units within MoRA, and regional governments, as well as other

relevant institutions. By way of example, the Balai Diklat in Semarang, Central Java, provided training to 5,784

teachers, 70 supervisors, 66 supervisor candidates, 3,110 school directors, and 70 school director candidates in

calendar year 2018.

19. Given the very limited scale of CPD provided by Pusdiklat and the Balai Diklat, MoRA has begun to introduce

peer working groups for teachers, school directors, and supervisors, building on practices successfully implemented

by MoEC. As a 2014 World Bank report noted, “there is some evidence that teacher working groups are effective in

increasing knowledge levels of teachers. Teachers in working groups receiving a direct grant under the BERMUTU

Better Education Through Reform Management and Universal Teacher Upgrading program show a significant

improvement in cognitive and pedagogical ability.”39 The report further notes, however, that “It is not sufficient to

simply leave them on their own without guidance if real teacher improvement is to take place. The groups do need

some regular funding, and they do need a structured program of improvement to implement. Such a program should

be clearly focused on subject content framed within a comprehensive program of classroom lesson improvement.”


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20. To support rollout of in-service training, MoRA issued a regulatory provision (Peraturan Menteri Agama

[Minister of Religious Affairs Regulation] No. 60/2015) for the establishment of peer working groups for teachers, at

either the school, sub-district, and/or district levels, as follows:

a. Kelompok Kerja Guru (KKG) are working groups for primary-level teachers, provided for in Article 47A; and

b. Musyawarah Guru Mata Pelajaran (MGMP) are working groups for junior and senior secondary level teachers, provided for in Article 47B.

21. In addition, provision has been made for:

a. Kelompok Kerja Madrasah (KKM) are working groups for school directors, provided for in Regulation of the Minister of Religious Affairs (PMA) No. 90/2013 and Decree No. 7195/2018 of the Director General of Islamic Education 2019; and

b. Kelompok Kerja Pengawas (Pokjawas) are forums for CPD and networking among supervisors, provided for in Regulation of the Minister of Religious Affairs No. 2/2012 and Director General of Islamic Education 2019.

22. MoRA has developed regulations (Decree of the Director General of Islamic Education No. 7173/2017) to

govern the provision of block grants to KKG, MGMP, and KKM to support activities in both public and private schools.

There are two regulations in this regard: (i) Technical Guidelines (Juknis) pertaining to the block grant pilots, which

are issued at the Directorate General level on an annual basis and include details on the amount of the block grants

and a list of recipients; and (ii) Regulation of the Minister of Religious Affairs No. 38/2018 on CPD for Teachers within

MoRA, which notes that Pengembangan Keprofesian Berkelanjutan (CPD) aims to improve the knowledge, skills, and

professional attitude of teachers in carrying out their duties as educators, and notes that CPD can be done in many

ways, including through peer working groups (i.e., KKG and MGMP).

23. In 2018, MoRA began to pilot provision of such grants, distributed from both central and provincial levels, on

a small scale to support them to undertake ongoing in-service training (distributing 70 block grants to the legal

bodies established by KKG and MGMP to a total value of IDR 25 million). In 2019, due to the relatively small scale of

the block grant program, this has been consolidated so that distribution of block grants only takes place from the

central level, while the legal bodies for these peer working groups are typically hosted by a leading private or public

school in the area. The objective of the block grants is to support peer working groups to cover the direct costs of

experts (such as master teachers and lecturers from Balai Diklat) to participate in working group meetings and lead

specific training activities, and the cost of supplies needed to run effective meetings/sessions. It is expected that

other costs of running peer working groups (such as travel to and from meetings) should be covered out of school

budgets (including funds received centrally from BOS).

24. These pilots, while showing some promise, are operating on a very small scale, given the need for CPD across

the system. To give a sense of the number of peer working groups required, drawing from the experiences of MoEC,


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a reasonable target for establishing KKG and MGMP is to assume that one peer working group could comprise eight

to ten nearby schools. Assuming that 10 schools will feed one peer working group, 2,495 peer working groups will be

required at the MI level (primary), 1,697 at the MTs level (junior secondary), and 798 at the MA level (senior

secondary), assuming that these are all at sub-district level. However, separate KKG are required for different grades

at the primary level, though it may be possible to group some grades, while each subject would require separate

MGMP at the secondary level to be effective. Thus, the requirement is to develop sustainable, scalable models to

expand this form of CPD.

25. KKM would operate at the district level. At the national level, there are 50,478 schools so, assuming that

there are 10 directors on average in one group, 5,047 KKM will be required. For Pokjawas, it can be assumed that

there would be 514 peer working groups required for supervisors, one for each district.

26. In addition, based on EMIS data, we estimate that 20 percent of schools are in remote areas, which means

the teachers and directors would not be able to participate in peer working groups on a regular basis, since schools

are far apart. For these personnel, it will be necessary to make special arrangements to participate in provincially

organized, residential in-service training activities, or online learning, since the time and cost of travel required to

attend peer working groups on a monthly or bi-monthly basis make participation logistically impracticable.

27. In the current pilot, we expect that peer working groups would meet at least five times annually, but similar

peer groups organized by MoEC hold many more meetings (up to 16 times per year), which may be more effective.

However, current regulations within MoRA offer limited incentives for teachers to participate even in five meetings

per year. According to Ministry of Administrative and Bureaucratic Reform Regulation No. 16/2009, functional

training (i.e., organized training designed to achieve certain competencies) with a duration of between 30 and 80

hours is valued at one credit, while between 81 and 180 hours of such training is valued at two credits. Conversely,

participation in a teacher collective activity is worth only 0.15 credit per activity. Consequently, there is a need to

strengthen the regulatory environment and guidelines to enable more effective operations of peer working groups

and to ensure that there are clearly defined incentives for participation. In two of five working group meetings each

year, KKM and Pokjawas will invite school committees to attend to provide inputs and recommendations of KKM,

Pokjawas, MGMP, KKG working agenda. This will be included in the POM and working group guidelines.

Component 4: Strengthening of systems to support quality improvement

Grievance Redress Mechanism (GRM)

28. Under Component 4, MoRA will establish a GRM for project-affected persons to make complaints regarding

project-funded activities, with multiple channels made available for complaints to be lodged, including social media,

email, in writing and via a hotline number. The Project shall ensure flexibility in the channels available for complaints,

as well as ensure accessibility to the contact information for individuals who make complaints. Details of the

channels to make complaints, mechanisms for responding to complaints, and tasks and responsibilities of the PMU

team in managing the GRM are laid out in the POM.


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Organizational Structure

Project Executing Agency

(Ministry of Religious Affairs)

Project Executive Director

Director General of Islamic Education

Province Program

Administrator:

• Province Coordinator and Team

Provincial Level

District Level District Program

Administrator:

• District Coordinator and Team

Steering Committee (SC)

Echelon 1:

MoRA: Director General for Islamic Education; Secretary General; Head

of Research and Development Bureau

Bappenas: Deputy for Human,

Community and Cultural

Development, Deputy for

Development Funding Affairs

MoF: Director General of Budget

Financing and Risk Management,

Directorate General of Budget).

Echelon 2:

MoRA: Secretary of the Dit. Gen. of Islamic Education; Director of

Madrasah (KSKK), Dir. of Teacher

and Education Personnel (GTK), Head of MoRA Planning Office);

Head of Training Center

Bappenas: Director of Education and Religion; Director for Multilateral

Foreign Funding

MoF: Dir. of Loan and Grant; Dir. for Budget - Human Development and

Culture

Program Management Unit (PMU)

Program Manager

Deputy from Dit. KSKK

Members: Dit KSKK:

- Secretary, PPK (Commitment

Officer), Treasurer, Assistant of Expenditure, Coordinator of

Component 1 and 2

Dit.GTK:

- Coordinator of Component 3 Secretary Dirgen Islamic Education:

- Coordinator of Component 4

Supporting

PMU (staff, consultants,

assistants)

Central Level


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Division of Tasks and Responsibilities

a. Steering Committee (Civil Servants): 1) Provide input on applicable policies. 2) Provide strategic guidance, input on consultant Terms of Reference (TORs) 3) Provide concise guidance to the project director regarding issues related with the project. 4) Ensure that the goal of the project is achieved, through routine monitoring. 5) Support the project director in achieving the key outcomes. 6) Ensure that the scope of the project is in line with the ability of the stakeholders involved in the

project and provides guidance on any adjustments needed. 7) Identify and advise potential project risks and the relevant risk management. 8) Assist in the settlement of differences and disputes. 9) Monitor the performance and accountability of the project.

b. Project Executive Director (Civil Servant):

1) Responsible for the overall project implementation, resolution of problems with project. 2) Approve the strategic implementation plan, monitoring and evaluation criteria, risks and risk

mitigation, annual planning and budgeting, the signing of the contract, human resource development planning, and system development planning.

3) Collaborate with the Steering Committee. 4) Conduct routine meetings with PMU and relevant units in the Ministry. 5) Submit Annual Report to the Minister of Religious Affairs, the Minister of National Development

Planning/Bappenas, and the Minister of Finance. 6) Responsible for the project budget allocated in the annual DIPA.

c. Project Management Unit (PMU):

1) Prepare the Annual Work Plans and Budgets 2) Prepare the annual project activities and budget for implementation. 3) Work together with component coordinators and consultants in preparing the strategic plan of

project implementation. 4) Implement the project activities as scheduled. 5) Report quarterly the progress of the project to the Project Executive Director and MoRA, MoF, and

Bappenas. 6) Coordinate with the Coordinator of Components. 7) In reference to project document (Results Framework) and input from consultants, determine

targets for evaluation, monitoring of implementation and criteria. 8) Prepare monthly progress and financial report of the project. 9) Prepare the Interim unaudited Financial Report (IFR) quarterly. 10) Prepare mid-year and annual implementation report. 11) Monitor the field situation on a regular basis 12) Oversee the contracts and closely monitor their implementation.

d. Provincial Coordinator Unit

1) Provide input in the preparation of the Annual Work Plan.


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2) Prepare the Annual Work Plan and Implementation Budget. 3) Work together with PMU and consultants in developing a strategic plan for project

implementation. 4) Carry out project activities on schedule. 5) Report project progress quarterly to PMU. 6) Prepare monthly reports on project activities and finances. 7) Compile quarterly IFR to be submitted to PMU. 8) Prepare a semi-annual report and annual report on project implementation to be

submitted to PMU. 9) Monitor project implementation in the field regularly. 10) Monitor consultant contracts and their implementation.

e. District / City Coordinator Unit:

1) Provide input in the preparation of the Annual Work Plan. 2) Prepare the Annual Work Plan and Implementation Budget. 3) Work together with PMU and Provincial Coordinator Unit in preparing a strategic plan for

project implementation. 4) Carry out project activities on schedule. 5) Report the progress of the project every quarter to the Province Coordinator Unit and

PMU. 6) Prepare monthly reports on project activities and finances. 7) Compile quarterly IFR to be submitted to Province Coordinator Unit and PMU. 8) Prepare a semi-annual report and annual report on project implementation to be

submitted to Provincial Coordinator Unit and PMU. 9) Monitor project implementation in the field.

f. Head of Provincial/District/City MoRA Office:

1) Collaborate with PMU 2) Field supervision of implementation. 3) Prepare the project activity report including challenges, delays.

g. Consultants:

1) Report directly to the PMU Director 2) Provide inputs on the annual work plans and budgets 3) Provide inputs to the development of project activities and budget 4) Prepare the implementation and monitoring and evaluation reports of designated activities 5) Provide required technical assistance to the PMU


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Workflow


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Financial Management

29. The financial management risk is assessed as substantial. The financial management risk is related to the limited

MoRA experience of managing World Bank-funded operations. The risk is also related to the geographically dispersed

project locations. This may create challenges to: (i) monitor and supervise timely budget preparation/revision; (ii) monitor

and supervise budget execution; and (iii) prepare consolidated program financial reports without delays. MoRA’s financial

statements for the past two years, in FY2016 and FY2017, received unqualified opinions from BPK, the State Audit Agency,

meaning that MoRA’s financial statement presented the Ministry’s operations and financial position accurately according

to the accounting standard. This audit report covers all levels of MoRA (central and regional). However, the audit reports

also noted findings related to weaknesses on payment verification in the purchase of goods and training, workshop and

consulting service expenditures, and weaknesses on block grant administration, which is also one of the types of activities

financed by the proposed project. Risk at the school level is also anticipated in relation with the implementation of the

BOS program due to the varying capacity of school staff and the generally weak oversight of the program.

30. Some mitigation measures to be implemented in order to mitigate the risks identified above include: (i) PMU

decree to be issued to appoint team responsible for project’s management in the PMU; (ii) financial management

specialist team to be recruited and tasked with assisting the PMU in financial management aspects of the project,

including timely availability of budget, financial reporting, strengthened payment verification and oversight, and follow-up

of audit findings; (iii) a Dedicated Commitment Officer (PPK) and Assistant Treasurer to be appointed in the PMU to

support the proposed project; (iv) Project Operations Manual to include a manual for incentives and block grants to

teacher groups to be developed and agreed with the World Bank prior to the execution; (v) strengthening of oversight is

also considered including involvement of Inspectorate General of MoRA to include the project in the annual audit plan;

(vi) the annual audit of the project will be conducted by BPK; and (vii) training on financial management aspects of World

Bank-funded projects will be given to PMU staff.

31. Budgeting. The budgeting system follows the existing government procedures. World Bank financing will be included in the annual government budget and line ministry budget document (DIPA). Budget preparation is well defined, but there are frequent delays in execution. Parallel budgeting will be made for contracts financed by loan and by counterpart funds. Risk is noted regarding delays of budget availability and revision that may delay project implementation. The project operation manual will provide a detailed timetable of annual work plan preparation to be made early to be in line with the government budget processing time. The FM specialist recruited for the project will also assist the PMU on timely budget preparation and revision. 32. Accounting and Reporting. The PMU offices maintain separate accounting records for all payment orders (SPM) and remittance orders (SP2D) on a cash basis in accordance with Ministry of Finance Regulation 224/PMK.05/2016. All financial transactions are recorded in the government accounting system and included in government accountability reports. The original records are maintained in the file for auditing purposes. The PMU will prepare a set of consolidated IFRs for project monitoring purpose and for requesting advance from the World Bank. The PMU can obtain the financial information needed to prepare the IFR from the government treasury information system (SPAN). The PMU is responsible to submit the report to the World Bank no later than 45 days after the end of each quarter. 33. Internal Control. The payment verification process will rely on government systems. Direct and independent


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documentary evidence will need to be furnished to the implementing agencies for them to verify completion before payments are released to third parties. For workshop/training activities, payment validation procedures will require attachment of direct original supporting evidence of completion of all these activities. A dedicated commitment officer and assistant treasurer are to be also appointed in the PMU to assist the project. In addition to the existing verification procedures, the PMU will assign staff within the PMU to conduct detailed verification of the invoices prior to issuance of payment requests. This control measurement can be further improved through the provision of verification guidelines. Strengthening of oversight is also proposed, including involvement of Inspectorate General of MoRA to include the project in the annual audit plan. 34. Funds Flow. Designated Account (DA) denominated in US dollars will be opened by Director General (DG) Treasury (MoF) in the Bank Indonesia (the central bank) specifically for the project. The project expenditures will include goods, consultant, training/workshop, travel expenditures, operational expenses, block grant to school (under BOS) and block grant to teachers’ group. Access to funds in the DA for payment to third parties will follow the Government’s treasury system. Work unit in the PMU will review request of payment from third parties before issuing SPMs to the treasury office for payment. The treasury office will input the payment request to the treasury information system (SPAN) and the DG Treasury of MoF will issue a payment order to the World Bank to process the payment. For the Incentive program to schools that are government work units (Satker), the schools process the payment directly to the treasury office, while for schools that are not government work units, the Incentive program is paid from district office budget to school accounts. As for block grants to teacher groups, payment is processed to the treasury office by the work unit in province/district offices. The work unit submit to the PMU information of all payments remittance (SP2Ds) charged to the projects to use as basis to develop consolidated withdrawal applications. The PMU submits to the World Bank through MoF the consolidated withdrawal application to record the expenditures and request additional funds. 35. Audit Arrangements. The project will be subject to external audit by BPK. Each audit will cover a period of one fiscal year of the recipient. The audits will be conducted based on TOR agreed with the World Bank. Audit reports and audited financial statements will be furnished to the World Bank by not later than six months after the end of the fiscal year concerned and will be made available to the public. The audit will go beyond merely providing an opinion on the financial statements and will also include opinions on internal control frameworks and compliance with the loan covenants and related regulations. 36. Disbursements The applicable disbursement methods are Advance and Reimbursement. A Designated Account (DA) denominated in US dollars will be opened in Bank Indonesia (the central bank) under MoF. The DA will be a segregated account solely used to finance eligible project expenditures. Payments from the DA will follow the government mechanism and authorized by MoF’s Treasury Office. The ceiling of the advance to DA will be variable based on six months projected expenditures. Report of the use of the DA fund and request for additional advance will be based on the quarterly IFR which should be submitted to the World Bank no later than 45 days after the end of each quarter and consist of: (i) a list of payments for contracts under the World Bank’s prior review and records evidencing such expenditures, or (ii) statement of expenditures for all other expenses; (iii) DA reconciliation statement; (iv) IFR; and (v) projected expenditures for the next six months. The PMU will be responsible for reconciling the DA and preparing applications for withdrawal of advances and preparing reports on the use of the DA, duly approved by DG Treasury before submission to the World Bank. All documentation for the expenditures as reported for disbursements will be retained at the implementing units and will be made available to the auditors for the annual audit, and to the World Bank and its representative if requested. The proceeds of the loan will be disbursed against eligible expenditures as in the disbursement category table as illustrated in Table A1.1.


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Table A1.1: Disbursement category

Disbursement Category Amount of the Loan

Allocated (US$ million) Percentage of Expenditures to be Financed (inclusive of taxes)

Goods, non-consulting services, consulting services, training, and incremental operating costs for the Project

137.5 100

Performance Grants under Part 1(c) of the Project grants to Under-performing MORA Schools under Part 1(d) of the Project, and Block grants under Part 3(a)(iii) of the Project

112.5 100

TOTAL AMOUNT 250.0

37. Parallel budgeting (DIPA) is made for contracts, activities or expenditures to be 100 percent financed by the Bank or counterpart funds. Counterpart funds of US$2.5 million are split between Component 2 (US$0.25 million) and Component 4 (US$2.25 million). Counterpart funds under Component 2 will support the student assessment activity, specifically the hiring of psychometricians to develop questions and oversee testing, correction and analysis. These funds are expected to contribute to long-term capacity strengthening in test development and analysis for MoRA. Counterpart funds under Component 4 will support honoraria of civil servants helping to manage the project, salaries, activities, and other costs across the components that are not covered by the loan.

Procurement

38. All Procurement anticipated under the project and financed from the loan will be carried out in accordance with the World Bank’s Procurement Regulations for IPF Borrowers of July 2016 revised November 2017 and August 2018, and the provisions of the Procurement Plan and POM, which shall take precedence over any national procurement regulations. This also applies to procurement of goods and non-consultant services under the Request for Bids through the National Open Competitive method, which shall also be governed by the Bank’s Procurement Regulations. Only in the case of National Open Competitive procurement packages, the Government’s procurement regulation No. 16/2018 may be used to the extent that it does not conflict with the Bank’s Procurement Regulations and subject to the required improvements listed in the Procurement Plan are incorporated in the harmonized model bidding documents agreed between the Bank and Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP, National Public Procurement Agency) for use in national open competitive procurement under Bank-financed projects. In case a conflict or difference in opinion arises during the procurement process, the Bank will provide clarification in writing for the correct application of the Bank’s Procurement Regulations. 39. The use of national e-procurement system (SPSE) may be used only for procurement of goods, works and non-consultant services under Request for Bids through National Open Competitive method, applying the harmonized model bidding documents for National Open Competitive bidding agreed by the Bank. For selection of consultant services through Quality and Cost Based Selection method, only the modified SPSE (termed by LKPP as SPSE- “ICB”) may be used applying the Bank’s standard Request for Proposal document. Since at the present time LKPP has not yet developed the modified SPSE for procurement of goods, works and non-consultant services under International Open Competitive method, nor for selection of consultants under Quality Based Selection, Consultant Qualification Selection, Least Cost Selection, Fixed Budget Selection and individual consultant selection methods, therefore procurement of all contract


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packages under these methods shall be carried out through non-electronic process with manual issuance of invitation for bids and receipt of bids, until such time that the modified SPSE has been completed by LKPP and assessed by the Bank to be acceptable. If the Bank determines the modified SPSE to be acceptable for use under the above-mentioned remaining procurement methods, the Bank will confirm through the Bank’s written no objection to LKPP and will also notify in writing to project implementing agencies. During project implementation, the World Bank’s Systematic Tracking of Exchange in Procurement tool will be used will be used to record, prepare, update and approve Procurement Plans and procurement transactions under the project. 40. Most of the procurement under the project is expected to be for non-consulting services for event organizers and logistics support, procurement of goods for servers and laptops, procurement of works for school rehabilitation, consultant services with firms for software development and support and individual consultants to support the PMU and to provide technical expertise required under each project component managed by members of PMU, such as Directorate KSKK for Components 1 and 2, Directorate Teachers and Education Personnel (GTK) for Component 3, and Secretary of Directorate General Islamic Education for Component 4. The individual consultants who will support the PMU under Directorate KSKK include Education Management Specialist, Project Management Specialist, Monitoring and Evaluation Specialist, Financial Management Specialist, Procurement Specialist, Social, Environmental Safeguards Specialist, and Application/Software Developers. The individual consultants under each project component typically consist of Project Adviser, Project Consultant, and Program Assistant. 41. Procurement of goods, works, and non-consulting services exceeding IDR 200 million per contract and procurement of consulting services exceeding IDR 100 million will be carried out by the Procurement Service Unit supporting the PMU on each project component, and below this threshold by the procurement officers under the Directorate General. These responsibilities and arrangements are described in detail in the POM.

42. MORA does not have previous experience in carrying out and monitoring procurement of non-consulting services, consulting services, procurement of works, and procurement of goods under World Bank-financed projects following the Bank Procurement Regulations, nor have the Procurement Service Units and Procurement Officers supporting PMU handled procurement of the nature and size expected under the Project. Their capacity will be strengthened through measures including: (i) MoRA will engage a qualified procurement consultant to support PMU, guide and provide training to the Procurement Service units and Procurement Officers under the Project, and the Bank will provide supplementary support by delivering training on the Bank’s Procurement Regulations for IPF Borrowers; and (ii) mandatory use by PMUs of the Bank’s STEP tool, with quarterly procurement performance reports to be submitted to the Project Steering Committee and the Bank, identifying any bottlenecks and proposed remedial actions. The Bank will provide guidance and support with procurement supervision missions in the field conducted at least twice per year, including prior review of the large value, strategic, or critical contracts, and ex-post review of at least 20 percent of the remaining contracts.


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ANNEX 2: Detailed Project Description

1. With the aim of strengthening management40 of education services under MoRA, specific investments are

proposed for all roughly 50,000 primary and secondary formal education institutions nationwide under MoRA through the

following components:

- Component 1 - Nationwide implementation of electronic school-based performance budgeting system and grants

to schools.

- Component 2 - Implementation of a national, census-based student assessment in 4th Grade.

- Component 3 – Policy and Continuous professional development for teachers and education personnel of MoRA

Schools.

- Component 4 – Strengthening of systems to support quality improvement.

2. Component 1 – Nationwide implementation of electronic school-based performance budgeting system and

grants to schools (IBRD: US$125.00 million). The project will support the implementation of an electronic performance-

based planning and budgeting system (e-RKAM) for all primary and secondary schools under MoRA that receive BOS. This

will enable budget management support and monitoring at the provincial and district levels. The implementation of e-

RKAM will allow schools serving primary and secondary students to allocate non-project budget transfers such as BOS and

other resources at the school level to achieve the NES. The e-RKAM will also enable the monitoring and provision of

support for frontline service providers at the district, provincial and central levels. The e-RKAM will benefit from climate

resilience measures detailed under Component 4 through development and implementation of disaster recovery policies

to ensure that data are not lost, backups are routinely verified, appropriate online data protection strategies are in place,

and systems remain operational in the event of disruption from natural disasters, including both climate and non-climate

hazards. The project will also support the improvement of the existing BOS complaint handling system in MoRA, so the

complaints received will be reviewed and responded to faster and more effectively.

3. Considering the effectiveness of the budgeting and financial reporting system after its introduction in 2018, MoRA

is currently expanding the pilot using its own funding in all 34 provinces. In addition, with technical support from the

World Bank, MoRA has already trained 34 groups of MoRA Provincial Office staff to be the trainers at the provincial level

and will train school personnel in 2,000 schools in these areas in 2019. During the self-funded pilot period, the MoRA team

will work to improve the e-RKAM system, as well as its guidelines, so that the improved system can be implemented in the

first year of project implementation in 2020.

4. Given that many schools are located in remote areas, with limited or no internet connectivity, during the first year

of implementation the project will develop a semi-online e-RKAM system. In this system, schools can develop their plans

40 Management is defined here as the practices employed by those in positions of authority to carry out their responsibilities, such as setting the pace of work, allocating and monitoring the completion of tasks, and administering both human and physical resources (following Adelman and Lemos, ‘Managing for Learning’, forthcoming).


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and budgets using an off-line system, and every semester the file(s) will be sent to MoRA to be uploaded onto the e-

RKAM. The project activities under this component have four subcomponents.

5. Subcomponent 1.1: Support the measurement of the achievement of the NES for MoRA schools (IBRD: US$15.6

million). The project will undertake the following activities across all roughly 50,000 schools under MoRA:

(a) Develop a school quality scorecard assessment system based on the NES. Indicators of MoEC’s NES (BSNP) will be used as the basis for the development of the system (see Annex 4).

(b) Train MoRA teams at the central, provincial, and district levels, including supervisors and representatives from MoRA schools on the NES assessment system and on the utilization of these results for planning and budgeting at their education institutions, through training and consultancy services; 100 percent of relevant staff will be trained (about 8,000 people).

(c) Improve ability of supervisors and the MoRA District and Provincial Offices to assess the NES, through consultancy services. All relevant staff will be trained (about 4,000 people).

(d) Analyze and disseminate district-level results of the self-evaluations of the NES comparing data available electronically with directly observed schools and suggesting areas for attention.

6. Subcomponent 1.2: Support and provide technical assistance to the districts and provinces to analyze and report

data based on the e-RKAM (IBRD: US$35.7 million). This will comprise the following activities:

(a) Train the teams at the central, provincial, and district levels, including supervisors and representatives of MoRA schools, on the e-RKAM performance-based budgeting system. The project will attempt to cover 100 percent of MoRA schools and will provide training for about 150,000 school and district representatives.

(b) Provide technical assistance for the development of an implementation plan of e-RKAM at all MoRA schools in each region of Indonesia, on a gradual basis, starting in 2020 until the project’s completion date of 2024. These two activities will enable the team to train and provide technical assistance to various education institutions to apply performance-based planning and budgeting electronically.

(c) Monitor and provide technical assistance, as required, to all MoRA-related education institutions at all stages: planning, budgeting, implementation of e-RKAM. Technical assistance will be provided to the schools by MoRA’s Education Team and school supervisors.

(d) Technical support from central level to provincial- and district-level offices to analyze the planning and budgeting information coming from schools and examine the use of the budget for further improvements in spending by schools.

7. Subcomponent 1.3: School-based performance grants to incentivize improved achievement of NES based on the

e-RKAM (IBRD: US$8.0 million). School-based incentive improve achievement of NES based on the e-RKAM:

(a) The project will finance a performance grant through BOS to reward those education service providers who report their entire education budget plans and execution using e-RKAM and satisfy several performance indicators. The proposed performance indicators include (1) measurement of student learning, (2) school’s achievement of NES, and (3) school’s commitment to improve quality education through teacher training. The student learning measurement will utilize the school’s average national exam score for a given year. This first indicator will include both absolute score and score improvement from the previous year. The inclusion of change-in-performance is to address the risk that if only absolute achievement is used, low performing schools may not increase their effort as they may not perceive themselves as likely to win. If only improvement is used, there is a risk that only schools who have improved from low absolute levels of achievement will win. Therefore, the project will use a combination of improvement and absolute achievement. The combined national exam score should have a low weight within the overall calculation to


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avoid incentivizing cheating. For MI (primary) level, since there is no national exam, the student learning indicator will not be included. The second performance indicator uses two proxies for the schools’ delivery of education services based on the NES: whether school has sufficient textbooks and the proportion of teachers that are qualified (i.e. Bachelor degree) as per the NES. The third performance indicator is the school’s commitment to improve quality education through teacher training that will be measured by whether at least 5 percent of BOS funds are spent on in-service teacher training.

(b) This performance grant will be given in the year following the schools’ submission of complete financial planning and reporting using e-RKAM (online or offline). The flow-of-funds for this incentive payment is the same as BOS and the same regulations that apply to spending BOS financing will apply to this incentive. All schools will be notified of the possibility to receive the incentive. The incentive will be given to the top approximately 2,600 schools, based on their achievement of the indicators proposed above. Those schools receiving the incentive will be publicly announced by MoRA at the district level. This will help to make not-yet-implementing schools aware of the performance-based budgeting and financial reporting tool, as well as providing public recognition of implementing schools. The e-RKAM reporting will also establish a baseline NES rating for schools.

8. These incentives are focused at the school rather than the individual level, though ultimately it will require

individuals to take action (with the school principal having major responsibilities to ensure action is taken). School-level

incentives have been chosen because: (i) there is an existing mechanism to deliver them in a transparent and efficient

way; (ii) success is clear and measurable; and (iii) such incentives have had some success in the Indonesian context (Al-

Samarrai et al., 2017). The Theory of Change is that the incentives focus effort on specific high-priority and high-impact

tasks in a context in which actors at the school level (especially school principals) may be overwhelmed with their day-to-

day duties and are not able to devote enough time and effort to effectively plan ahead.41 An incentive can potentially

unlock this binding constraint, as well as defray costs of learning to use the new system.

9. In order to maximize the effects of the incentive, the school self-assessment tool for the NES supported under 1.1a

will be used. This will provide clarity in what the schools need to do to receive the incentive payment, which is essential

for the incentive to have an effect on behavior. The project will favor a self-assessment tool with a small number of

observable criteria, and establish a clear definition of the minimum threshold for improvement to receive the award to

maximize the potential impact. Only elements of the NES that are under the direct control of the school will be included.

While the value of the initial incentive is small relative to BOS during the period of project implementation, it is important

to ensure that participants are informed of the incentive and to establish the incentive mechanism in the system, as there

is currently no incentive-based public financing in MoRA’s system. This school-based performance grant will be evaluated

under Component 4.

10. The flow of funds mechanism for transferring project-financed incentives under this sub-component to MoRA

schools will be the same as the budget transfer mechanism of the BOS funds. In effect, the incentive is treated as an

additional BOS fund that is received by the schools to achieve NES.

41 Fasih & Macdonald (2017). School-based management policies in Indonesia and their implementation at the school level. The World Bank and the Australian Government.


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11. Subcomponent 1.4: Provision of grants to under-performing MoRA schools to encourage improved use of

finances to achieve the NES (IBRD: US$65.7 million): A small grant will be provided to the lowest-performing schools to

help them achieve the NES and to encourage MoRA to focus on these low performers, which are important contributors to

the current modest level of overall student learning. Many of these schools face significant financial constraints and are

unlikely to improve achievement of the NES simply through changes in budgeting approaches supported by Component

1.1, described above. Given the scale of the education system, it is difficult to incentivize changes in behavior across all

schools simultaneously, while this may also be inefficient given that some schools have very few students. Consequently,

the project will focus on several ‘eligibility’ requirements for schools: (i) they must have an enrolment of at least 100

students for primary and 60 students for junior and senior secondary; (ii) they are in the bottom 40 percent of Ujian

Nasional (UN) for 9th Grade for junior secondary schools and 12th Grade for senior secondary schools, or have a low level of

accreditation ; and (iii) they must implement the e-RKAM in the year the grant is received. This last criterion is to enhance

accountability and ensure that additional funds go toward improving NES scores. Schools that meet these criteria will be

eligible to receive a grant of US$5,000 (IDR 75,000,000) in year 3 and again in year 4 of the project. Public MoRA schools

with extreme rehabilitation needs will be prioritized over private MoRA schools. The project will support the development

of guidelines to inform the criteria for the selection of recipients and on the use of grant funds; a grant operations manual

will be developed before funds are disbursed. Funds are expected to be used on items such as textbooks, teacher training,

and school operation costs as well as medium rehabilitation and repair works to support learning needs. Medium

rehabilitation is defined here as repair of a portion of the non-structural components and/or repair of a portion of the

roof, ceiling, and/or floor of classrooms, libraries and laboratories. The project financial statements will be audited

annually by the State Audit Agency (Badan Pemeriksa Keuangan, BPK). The project will finance grants to approximately

4,600 schools benefitting at least 750,000 students. This represents about 5 percent of MoRA’s primary and secondary

student population.

12. The World Bank commits to using non-loan funds to conduct an assessment to determine the degree to which

infrastructure is a binding constraint on MoRA student learning. The assessment will start no later than August 2019. The

results of the assessment can guide future education infrastructure investments such as building new classrooms,

laboratories and libraries through a restructuring of the project.

13. Component 2 – Implementation of a national, census-based student assessment in 4th Grade (IBRD: US$31.8

million; Government: US$0.25 million). A standardized examination system at the primary level will support improved

service delivery and accountability for formal public and private primary education institutions, following a key

recommendation of the 2018 WDR, Learning to Realize Education’s Promise. The first step to improving student learning

outcomes across MoRA’s education system is to put in place good metrics for monitoring whether programs and policies

are delivering learning. The project will fund the development, piloting, and implementation, including distribution,

proctoring, correction, and dissemination of a student assessment system in the form of an age-appropriate competency

test to assess student learning outcomes at the 4th Grade level for 100 percent of the about 580,000 4th Grade students.

The project proposes to build on the existing Asesmen Kompetensi Siswa Indonesia (AKSI) program of MoEC, which

assesses competencies based on the national curriculum required from 4th Grade students in reading, writing,

mathematics and science, adding modifications specific for MoRA. The project will support all 4th Grade MoRA students to

take a computer- or paper-based AKSI-type exam at the beginning of the academic year. The assessment will be developed

and piloted at scale in the first year of the project, and then administered to half of all 4th Grade students in the following


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project years, such that each fourth-grade class will be tested twice under the project. The costs of exam administration

are expected to be covered by MoRA from its regular budget allocation prior to project end.

14. This component will focus on assessing student learning in Grade 4 using a census and paper-based approach or,

where possible, a computer-based test. A census-based rather than sample-based approach will be used because the

assessment intends to inform individual teacher practice and student learning for all students, and inform current teacher

approaches to learning with that specific, individual student. For the same reason, the test will be repeated in each year of

the project. A computer-based approach to test administration may be possible in some cases where students are familiar

with computers and schools have access to them. It is not expected to be possible to use computer-based testing in all

cases, since many students may lack access to, as well as familiarity with, computer usage and the test may end up

assessing student familiarity with computers rather than specific achievement on test items. Finally, Grade 4 is selected

because standardized student assessments in lower grades often require a trained adult to directly administer the exam

(for example, the Early Grade Reading Assessment is administered by one assessor to a single student at a time).42 This

direct administration of the assessment increases the cost significantly, making a census-based approach less affordable

and sustainable in lower grades. Furthermore, by testing in Grade 4, the exam is expected to avoid some of the exam

pressures on students of the discontinued end-of-6th Grade UN by testing in an intermediate rather than the terminal

year of the primary cycle, and by testing in the first semester of the academic year. The timing of the exam is essential to

achieving the intended result; by providing students, teachers, school committees and parents with information about

individual student learning during the school year in which the exam was taken, it will become possible for them to

address deficiencies in individual student learning.

15. The Theory of Change for this component is at both the system and at the school levels. Information on how much

and which students are learning is a necessary pre-condition for system managers to make decisions on how to improve

the efficiency, efficacy, and equity of education service delivery. The project aims to establish this pre-condition at the

level of the system for primary education—the foundation of subsequent levels of human capital development. While

some high-performing schools conduct their own assessments, at the school level many principals and teachers lack

information to improve management and instruction in the current absence of a curriculum-aligned national exam during

the primary cycle. This information gap can be closed with information about student performance on the 4th Grade exam,

and improvement on the intensive margin in management practices and classroom instructional practice is also expected,

following de Hoyos and Patrinos, 2017, and de Hoyos, Ganimian and Holland, 2017 (see Annex 3 for detailed discussion).

16. Component 3 – Policy and continuous professional development for teachers, directors, and education personnel

of MoRA schools (IBRD: US$61.4 million). Project financing will be used to expand opportunities for teachers, school

directors, and school supervisors (pengawas) to participate in in-service training, while improving the quality of that

training and strengthening the regulatory environment around its implementation. The project will focus on improving the

quality of peer working groups and other related CPD activities for teachers, directors, and supervisors of both public and

private MoRA schools. Support will be provided through technical assistance and financial support to the peer working

42 RTI International. 2016. Early Grade Reading Assessment (EGRA) Toolkit, Second Edition. Washington, D.C.: United States Agency for

International Development.


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groups and other key in-service training activities. While improvements to the in-service teacher training system are not

sufficient to address all of the quality issues of the teacher force, it is an essential part of improving overall teacher quality.

17. The project is expected to support training for over 150,000 teachers and education personnel from primary, junior

secondary and senior secondary levels. This will include training for over 50,000 3rd and 4th Grade teachers, as well as

teachers at the junior and senior secondary levels in the core subjects of math, language and science. This comprises

almost all 3rd and 4th Grade teachers, as well as about 55,000 junior and senior secondary subject teachers for the three

targeted subjects of science, math and language, representing about half of all targeted subject teachers at the secondary

level. The key capacity-building priorities are to deepen subject knowledge and to help teachers develop more effective

classroom practices that, in turn, enable students to achieve better learning outcomes. For teachers of Grades 3 and 4, this

includes attention to interpreting the results of the Grade 4 assessments and using those results to improve classroom

practice. At the secondary level, the project will focus on Subject Matter Teacher Consultative Groups or Musyawarah

Guru Mata Pelajaran (MGMP) for math, sciences, and languages (Bahasa Indonesia). The project will attempt to include

the subjects of economics and English if possible. The project will specifically support teacher training and the

development of training materials are designed to integrate climate change considerations, namely training teachers how

to teach topics of climate change adaptation/mitigation following the national curriculum.

18. Through the above activities, the teacher cluster working groups, Kelompok Kerja Guru (KKG) and MGMP can also

provide informal support to those teachers seeking to complete the Pendidikan Profesi Guru Program. The project will

support CPD for about 6,500 school directors, with the objective of strengthening their role as effective educational

leaders and mentors, with a focus on enabling their institutions to achieve the NES. Likewise, there is a need to develop

the capacity of supervisors to monitor and support both directors and teachers effectively, by providing effective training

guidance, monitoring implementation of the NES, evaluating performance, and supervising teacher induction programs.

Training for 3,000 supervisors will be supported by the project, representing 60 percent of the total number of MoRA

primary and secondary education supervisors.

19. There is a growing imperative to develop the capacity of teachers to be able to harness information and

communication technologies (ICT) effectively in the classroom, both to develop information literacy skills among

Indonesian students and to use technology to support more effective pedagogical practices.43 This requires teachers both

to develop their own ICT literacy skills and to learn how to harness ICT most effectively for pedagogical purposes.44 It also

requires school directors to understand how to support effective use of ICT within their institutions, and supervisors to

understand how to provide effective support to teachers on ICT use in the classroom. Consequently, the above activities

will incorporate an integrated focus on developing these skills in teachers, school directors, and supervisors.

20. Delivering this CPD support will include the following subcomponents:

43 Yusri, I.K & Goodwin, R (2013). Mobile Learning for ICT Training: Enhancing ICT Skill of Teachers in Indonesia. International Journal of e-Education, e-Business, e-Management and e-Learning, 3(4): 293-296. http://www.ijeeee.org/Papers/243-N00006.pdf 44 World Bank (2018. Preparing ICT Skills for the Digital Economy: Indonesia within the ASEAN Context. https://blogs.worldbank.org/eastasiapacific/files/preparing_ict_skills_for_digital_economy-revised_7mar2018.pdf


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21. Subcomponent 3.1. Strengthening and expanding access to peer working groups for teachers, school directors,

and supervisors (IBRD: US$39.0 million). This will include:

a. Development and approval of policies and regulations on in-service training and particularly the operation of

peer working groups, building on existing regulations and drawing from lessons learned during MoRA pilot

projects, the experiences of MoEC, and international best practice. This will include a review of mechanisms to

incentivize ongoing participation in peer working groups at all levels. It will also incorporate manuals to provide

guidance on the establishment peer working groups and their operation.

b. Needs analysis to identify priority capacity-building needs for teachers, directors, and supervisors, drawing on

research already conducted on schools and teachers in Indonesia. As part of this process the project will deploy

an online version of the Ujian Kompetensi Guru (UKG), a teacher competency test that will enable teachers to

self-diagnose key areas where they need to strengthen their competence through the peer working groups.

c. Scaling up the distribution of block grants to KKG (working groups for primary school teachers), MGMP

(working groups for secondary subject-matter school teacher), Musyawarah Guru Bimbingan Konseling (peer

working groups for student guidance counselors), Kelompok Kerja Madrasah (KKM) (peer working groups for

school directors) and Pokjawas (working groups for supervisors), and at district, sub-district, and school levels,

to facilitate widespread in-service training in identified areas of need. This will first require development of

effective approval, disbursement, governance, and accountability mechanisms to ensure that distribution of

block grants to peer working groups achieves its intended professional development objectives.

22. Subcomponent 3.2: Development, piloting, and rollout of face-to-face in-service training sessions for educational

personnel (IBRD: US$5.4 million). This will include training directors, supervisors, teachers, librarians, and laboratory

technicians, including those located in areas that are too remote to enable regular participation in peer working groups.

This includes specific training for teaching children with special needs (inclusive education) and induction training for

teachers preparing for teacher certification. This training is expected to be offered as five-day sessions held once annually

in each province, but it could also be expanded to incorporate aspects of online learning, as appropriate.

23. This subcomponent will also include training courses for MoRA school director candidates to improve the

competency of candidates applying to become school directors. There is global evidence that female school leaders tend

to spend more time in the classroom working on issues such as effective instructional practice (Aud et al., 2012; Kim &

Brunner, 2009) and have a more collaborative, democratic leadership style (Lee, Smith & Cioci, 1993; O’Rielly & Borman,

1984). Women currently make up about 52 percent of MoRA teachers, but only 22 percent of school directors. This

subcomponent will therefore focus on increasing the participation of women applying for, and participating in, director

training. Minister of Religious Affairs Regulation (PMA) No. 58/2007 establishes priority appointment for candidates who

complete the school director training. Therefore, this investment is expected to lead to increased numbers of women

qualifying for directorship positions, a metric that will be measured by the project. It is also expected to lead to increased

appointments of women in these management positions but, since more than 90 percent of MoRA schools are private,

this cannot be directly targeted.

24. Based on SIMPATIKA data, 2,500 MoRA school director vacancies are projected to become available during project

implementation. The project will support training for 700 teachers who have met the administrative criteria to participate

in training for school director candidates over this period, and support 50 percent participation by female candidates (the

value of the indicator target is 350 female director candidates trained using project funds). This represents a large increase


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from the current number of female participants for such training. The exact number of women participating in training for

director candidate is not tracked by MoRA, though the Pusdiklat report providing preparatory training for 90 director

candidates in 2018 noted that fewer than one-third were women. Training for this subcomponent will be managed by

Directorate of Teachers and Education Personnel (GTK) and implementation will be coordinated by the Pusdiklat, with

support from Balai Diklats.

25. Subcomponent 3.3: Design and development of key in-service training courses, resources, and materials in

identified areas of need IBRD: US$4.9 million). This will include:

a. Development, testing, and finalization of training modules for counseling guidance teachers building on the

‘Improving Education Equity through Growth Mindset Development’ materials developed by the World Bank

for the Indonesian context, as well as separate modules for librarians and science laboratory technicians. These

training modules will be rolled out online via SIMPATIKA and SIMDIKLAT (see

https://simlitbangdiklat.kemenag.go.id/), through peer working groups, and face-to-face training sessions for

teacher and educational personnel, including those from remote areas. Simdiklat is the Pusdiklat’s online

system for people to access information on and register on its courses, so it is the logical vehicle for

dissemination of online CPD activities and resources (through a separate, but linked, Pusdiklat CPD portal).

b. Development of an online version of the UKG teacher assessment for training as noted above.

c. Development and distribution via SIMPATIKA and SIMDIKLAT of high-quality educational resources/materials

for use in peer working groups, provincial in-service training events, and as stand-alone online learning courses.

26. Use of private providers for online CPD will be piloted under this subcomponent.

27. Subcomponent 3.4: Capacity strengthening of key educational personnel (IBRD: US$12.1 million), including:

a. Review and improvement of the regulatory framework and organizational structure of Pusdiklat and Balai

Diklat Keagamaan to support peer working groups for teachers and teaching personnel.

b. Training of staff and educational personnel at the Pusdiklat and Balai Diklat Keagamaan to strengthen delivery

of training programs for teachers and education staff, and to enable their effective ongoing participation in the

activities of peer working groups, as appropriate.

c. Training of core teachers at the national, provincial and district levels to become key resource persons in the

activities of peer working groups.

28. Component 4 – Strengthening of systems to support quality improvement (IBRD: US$31.8 million; Government:

US$2.25 million). This component consists of three subcomponents, focused on: (i) strengthening data systems; (ii)

systems strengthening activities; and (iii) impact assessments. Together, these activities will strengthen MoRA’s ability to

manage quality improvement and align the education system with learning.

29. Subcomponent 4.1. Strengthen MoRA data systems (IBRD: US$7.0 million). A crucial enhancement to the overall

system is that data need to be collected, stored, managed, and distributed securely and in a standardized format within a

single, integrated data warehouse architecture. This requires establishing standard processes to handle diverse kinds of

structured and unstructured data from different sub-systems, and to integrate them in a way that allows for efficient

analysis. It also requires designing and implementing a streamlined data-sharing model across the respective data systems,

underpinned by common unique identifiers for institutions, teachers, and students to ensure that data are comparable

and there are no duplicate records. The core activities proposed under this subcomponent include the following:

https://simlitbangdiklat.kemenag.go.id/


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a. Ensure that relevant data systems are running on appropriate shared server infrastructure and hosted in robust

environments that enable operators to upload data to them without interruption. This will require technical

assessment of key system hosting environments to determine both the key deficiencies in those systems

(hardware, software, etc.) and to enable procurement of the most appropriate technical solutions to the

problems identified, taking into account logistical constraints that might prevent implementation of ‘ideal’

solutions. The technical assessment is already underway, supported by New Zealand G2G Know-How and the

Government of Australia, and is expected to be completed prior to project effectiveness.

b. Development and approval of an EMIS Policy and Regulations for MoRA. These will provide an essential guide

to technical aspects of EMIS implementation (for example, defining common identification codes for

institutions, teachers, and students, protocols for importing and exporting data, technical standards for system

interoperability, etc.). It will also define governance responsibilities for different aspects of the data systems

across MoRA, to prevent duplication of efforts and systems. Without such a policy and accompanying

regulations, it will be difficult to ensure adherence to these common technical requirements across sub-

systems. The project will pay for technical support for 68 provincial- and district-level staff, as well as 10

central-level staff.

c. Focusing on key systems (particularly EMIS, SIMPATIKA, and SIAGA), re-establish the core central data

architecture of the MoRA data systems to ensure that critical data entities (institutions, education personnel,

and students) use common unique identifiers across systems, and that duplication in data collection/storage is

minimized by enabling automated data-sharing across systems. In line with similar developments at MoEC, this

will focus on harnessing the National Identity Number to identify educational personnel and students. It will

also incorporate integration of key business requirements across Directorates to ensure that the data systems

meet MoRA’s planning and management needs.

d. Establishment of disaster recovery policies for all relevant data systems. Apart from the e-RKAM discussed in

Component 1, all other MoRA data systems should be governed by a clearly defined Disaster Recovery Policy,

which includes a systematic analysis of potential risks, introduces clear procedures for data backup (including

periodic offsite data backups), and for routinely verifying that data backups are both being done and can be

used to restore data in the event of disaster, and minimum standards for system security.

e. Supporting climate resilience. This subcomponent will use ICT to enhance climate resilience of education

administration systems. Apart from the e-RKAM discussed in Component 1, other data systems of MoRA are

currently dependent on infrastructure across the country’s extended geographic reach where many districts

and provinces are in potential disaster zones. The current distributed systems for storing and managing data

both increase the likelihood of localized data loss and make it difficult to implement reliable disaster recovery

policies across the system. In addition to the e-RKAM, disaster recovery policies will be defined and

implemented for all core MoRA data systems to ensure that data are not lost, backups are routinely verified,

appropriate online data protection strategies are in place, and systems remain operational in the event of

disruption from natural disasters, including both climate and non-climate hazards. These disaster recovery

policies will include judicious use of cloud-based hosting strategies so that systems are not physically installed

on just a single machine or server farm, combined with real-time data backup in the cloud-based hosting

environment, so that there is no single point of failure for those systems and seamless operations are ensured

in the event of catastrophic events.


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30. The above activities will focus on ensuring that MoRA’s data systems are systematically reviewed, strengthened,

and modernized without any disruptions to the operations of the education system, while also laying the groundwork for

ongoing longer-term improvement to their effectiveness and functionality. This will serve to improve decision-making,

while also underpinning and supporting achievement of all the other key components of the project, all of which rely on

accurate, up-to-date data to enable effective decision-making and operations, as well as to monitor progress in

implementation.

31. Subcomponent 4.2. Technical assistance for additional systems-strengthening activities within MoRA (IBRD:

US$23.9 million; Government: US$2.25 million): In addition to supporting improved data and financial systems, the

project will also make investments in additional technical assistance to strengthen MoRA’s systems and thereby create the

necessary conditions for quality improvement. Specific activities identified under this subcomponent include:

a. Conducting research and consultative activities across the system to develop an improved private school

regulatory framework. This will include primary and secondary research on regulation, as well as national and

international consultations, and bringing in international experts to share best practice from other parts of the

world. It is expected to lead to improved and more robust MoRA policy regulations of private educational

provision. The project will finance participation of a broad spectrum of stakeholders, including yayasan owners,

school directors, supervisors, staff from districts and provinces, as well as MoRA central staff, or about 200

people in total.

b. Intra-ministerial workshops to explore institutional reorganization to expand MoRA’s capacity to use student

assessment data to improve learning and to mobilize support for schools lagging in the achievement of the NES.

c. Technical support to MoRA at the central level for planning and budgeting for performance-based education,

combined with ongoing strengthening of financial management and procurement systems within the Ministry.

The project will pay for training for about 550 planning and budgeting staff, including representatives from the

district and province and central offices, covering 100 percent of districts and provinces.

d. Financial support for a Project Management Unit (PMU) within MoRA to provide the required capacity for the

implementation of the project.

32. Subcomponent 4.3 Assessments of Impact (IBRD: US$0.9 million): The project will support data collection for an

impact evaluation using the value of the NES improvement incentive under component 1.2 as an instrumental variable.

The evaluation will also examine differences between those schools close to the threshold for receiving the grant

described supported by component 1.3 (regression discontinuity design). The technical design details of the impact

evaluation will be agreed during the first year of project implementation and be supported by the World Bank using trust

funds and/or other resources. Project funds will finance data collection, while the process of co-design and analysis is

expected to increase MoRA’s capacity to evaluate policy initiatives.

33. Evaluating the establishment of a census-based exam in 4th Grade is also considered important, given that there is

currently no system-wide measure of student learning in MoRA schools (system output) prior to 9th Grade. The project

will support a low-cost, multi-year effectiveness evaluation of the 4th Grade student assessment component. The

evaluation will investigate the effects of the introduction of the 4th Grade exam on teacher, school director and parental

behaviors, and knowledge linked to student learning. The intention is to provide real-time feedback to the implementation

process to improve achievement of the objectives. The data collection for this evaluation is included in the project budget,


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while the technical design will be supported by the World Bank. The Bank is seeking trust-fund financing to support the

implementation and analysis of the effectiveness evaluation.


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ANNEX 3: Economic and Financial Analysis

1. School management and quality are a major focus of project investments, and management challenges include

issues related to finances. Private MoRA schools receive between 25 and 60 percent of their total expenditures from

private sources, and the larger private presence in these schools is explained in part by the lower amount of support

provided directly by MoRA to private schools, compared with MoRA public schools (see Table A3.1). Available evidence

indicates that MoRA has limited systematic information about the sources of these private funds flowing into private and

public MoRA school and how they are used to address school quality in line with the country's National Education

Standards (NES). This reality highlights the importance of better financial management at both the school and sector

(MoRA) levels.

Table A3.1: Sources of funding for public and private MoRA schools

Type of institution Funding sources for public vs. private MoRA schools

Government funding1 Funding by non-governmental sources2

Public Schools 80% – 95% 5% – 20%

Private Schools 40% – 75% 25% – 60%

Source: Madrasah Education Financing in Indonesia (ACDP, 2013)1 MoRA central, provincial, and district offices and other governmental institutions such as the MoF. 2 These sources include parents, religious foundations, communities, and other sources.

2. In addition to financial management, there are also quality challenges. Student achievement scores in MoRA

schools in the 2016 PISA were more than one standard deviation below the international average (see Figure A3.1 below).

Comparisons with MoEC schools are not exact since the sample is not representative for MoRA, but the overall average for

MoRA was lower, especially in private MoRA schools.


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Figure A3.1: PISA score of MoEC & MoRA schools, 2016

Source: World Bank, 2018, MoRA Public Expenditure Review.

3. What is the objective of the project? The PDO for this project is “to improve the management of primary and

secondary education services under the Ministry of Religious Affairs (MoRA).” This statement identifies the direct

beneficiary (MoRA), with the schools and students under MoRA's jurisdiction being implicit beneficiaries. It identifies the

change expected for this target group for which the project can reasonably be held accountable (“improved

management”). However, it holds the project accountable for outputs, not the benefits that it is hoped will ultimately be

produced by those outputs. A focus on improved learning in fact animated the selection of this project's components.

Even if the project is successful and ultimately triggers improved learning, learning gains attributable to the project are not

realistically expected to materialize and be measurable during the lifetime of the project. The project focus on school

management and teacher quality components is based on a desire to improve learning in the MoRA sector, and the

project is directly accountable for outputs related to these interventions. Longer term project impacts on student learning

and grade attainment will be harder to establish given the sector-wide implementation of the four main components

across thousands of schools, the difficulty of carrying out Impact Evaluations within such an ambitious rollout, and the

time that is required for changes in financial management and teaching and learning environments to impact student

outcomes.

4. Economic analysis of the project components is complicated by several factors. First, there is the lengthy causal

chain that requires translating plausible program impacts on schools and classrooms into a monetized return via increases

in grade attainment that impact beneficiary incomes in the future. Second, there is limited impact evidence for similar

project components from other contexts (e-RKAM, Grade 4 assessment), or evidence that is mainly in the form of changes

in achievement (CPD) that do not easily translate into future economic returns given the reliance on household survey

data analysis of returns on quantity (attainment) rather than quality.

5. In addition to improving school management with more effective budgeting and planning support, the e-RKAM

intervention supported by Component 1 has the potential to reduce budget “leakage” (corruption, mis-management,

double-counting). However, unlike interventions where budget resources are provided directly to beneficiaries (e.g.,


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scholarships), leakage in the school budget process has an unknown impact on beneficiaries. For example, Reinikka and

Svensson’s (2004) seminal work on the topic in Uganda found that an information campaign to make communities aware

of school grants led to a dramatic reduction in grant diversion away from schools, and improved student outcomes related

to enrolment and achievement. This highlights the potential impact of more transparent budgeting interventions and

information in directly reducing leakage, though both the context and the intervention are different. Nonetheless, it is

difficult to predict how these “extra” resources will be used by schools, and how productive that spending is for outcomes

such as achievement and attainment. Later work by Reinikka and Svensson (2011) provides some guidance, as student

enrolment and test scores did indeed improve when more resources were available to schools, but the changes were not

as large as the changes in the budget itself.

6. Is the selected subsector of education an efficient investment? The subsector selected for investment is normally

established in the context of the country dialogue and the CPF.45 However, the economic analysis has due diligence

responsibilities to check at least the private rates of return to the subsector(s) of education relative to other levels of

education to verify that the economic rates of return to that level are robustly positive for the borrower.

7. There is a strong case for investing in education in Indonesia. The design targets beneficiaries at the primary,

lower secondary, and upper secondary levels. The latest estimates of the rates of return in Indonesia to primary and

secondary46 education are robustly positive and relatively stable across a 12-year period with 10 separate measurements

(Montenegro & Patrinos, 2014). Similar to any investment, rates of return to education summarize costs to the individual

of the investment relative to (in this case, wage) benefits, expressed as an annual percentage yield. For Indonesia in 2010,

primary education yielded an annual increase of 12.7 percent in average wages, against 10 and 11.5 percent for secondary

and tertiary education, respectively.

8. Is there a rationale for public provision, financing, regulation, or information? Markets are not designed to assure

equity; this role is centrally one for the state. Systematic learning gaps between private school students and public school

and MoEC students (A.2.1) flag an equity challenge that the state is best positioned to address.

9. Are there any separable components and what are the risks to implementation success for each project

component? The components of this project are separable. Thus, each component can be treated as if it were a separate

project to determine whether each component increases or decreases the project’s total net present value. The Economic

Analysis was carried out for each component individually, with similar results: across such a large potential pool of

beneficiaries, even small improvements in grade attainment and/or student learning will justify the project components

on a cost effectiveness basis. And there is some evidence to support such projections based on results from similar

interventions in other countries. For Component 1 (e-RKAM) the previously referenced Renikka and Svensson (2004,

2011) work stands out. Component 2 (formative assessment) interventions have been associated with learning gains in a

range from 0.12 standard deviations (SD) (de Hoyos and Patrinos, 2017) to nearly 0.33 SD (de Hoyos, Ganimian, and

Holland 2017). A large literature is associated with Component 3 (CPD) teacher training programs, and the recent review

45 The Indonesia CPF for 2017-20 did not include this project. However, the October 2018 Performance and Learning Review of the CPF added “a suite of education projects responding to the heightened government priority towards human capital development”. The amended lending pipeline included this project. 46 The estimation papers do not define primary versus secondary education, but it is assumed that secondary includes lower and upper secondary education.


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by Popova, Evans and Arancibia (2016) found a maximum impact of about one-third of a SD on measures of learning

outcomes.

10. Despite the evidence of improvements in similar interventions from other countries, a careful review of the

uncertainties and risks associated with each of the components is necessary to highlight particularly vulnerable

components, and reinforce the message that positive economic payoffs to the project depend on significant—even if

small—impacts across a very large number of schools.

Component 1. Schools target resources better on achieving the NES. One risk is that schools may reject the use of the budgeting tool, though this risk is mitigated by the implementation incentive. If resources are better targeted on meeting the NES, it will improve learning opportunities only if: (i) schools are not already targeting their resources on achieving the NES; (ii) schools have resources adequate to improving achievement of the NES; and (iii) the NES have been validated against learning outcomes. The NES and Indonesia's accreditation standards for schools are closely aligned with each other and prima facie with learning. Figure shows an association between learning results and accreditation ratings. However, association is not causation, and there is reason to think that schools that have both lower or no accreditation ratings, and lower learning outcomes may also enroll more students from low SES families.

Component 2. Data on student learning outcomes in Grade 4 are collected and available for learning

improvement at the school level. The project targets completing the national assessment and getting its results quickly to teachers in the schools. There is a risk to achieving this goal because of the scale of its ambition. Conducting it and getting the results to teachers in schools within the academic year is logistically and technically challenging. Component 3 will be used to help teachers learn how to use the results of the Grade 4 assessment to improve their students' performance.

Component 3. Access to improved in-service training is increased for primary and secondary teachers and

education personnel. The project limits its objectives for this component to establishing a teacher training system (access, with some quality). Realistically, it does not seek to demonstrate effects on student learning during the project lifetime. An Independent Evaluation Group assessment of World Bank-financed training (World Bank, 2008) found that many teacher training programs underperformed due to insufficient attention to design. The design of component 3 is sensitive to well-documented conditions for successful training.

Component 4. Improve the data available for decision-making. Given the sector's experience with EMIS,

this is a risky component. Although most of the results for which the project holds itself accountable may be feasible, this component will have to be carefully monitored during implementation.


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ANNEX 4: Relationship between National Education Standards (NES) and Accreditation Standards

1. Law No. 20/2003 on the National Education System, which defines a number of key areas of education including the function and purposes of education, curriculum, education personnel, and others, also set the basic foundation for establishment of the National Education Standards (NES). It was followed up by Government Regulation No. 19/2005 on National Education Standards, which defines the national standard in the following eight areas: - Content - Process - Graduate competency - Teacher standards - School facilities - Education management - Funding, and - Assessment

2. The regulation also mandates the establishment of National Education Standards Board (BNSP), which is tasked with preparing the detailed education standards and overseeing their implementation.

3. There is also an accreditation process for schools, which is executed by BAN-SM. The most recent change of accreditation standard was to include adjustment to the 2003 law and NES implementation in schools. The structure of the accreditation instrument follows the order of the eight areas of NES. For the accreditation instrument for primary schools (SD and MI), it has 119 indicators which each is developed from the eight areas of NES. For example, item 1-10 is the indicators measuring the content of education, and one of the indicators asking whether the teacher develop learning materials on student’s knowledge based on competency standard in the curriculum. Item nos. 39-54 are the indicators measuring the teacher standards. One of them asks what percentage of teachers in the school already have teacher certification.

Eight National Education Standards and Criteria Graduate competence 1.1. Graduates possess attitude dimension of performance 1.2. Graduates possess knowledge dimension of performance 1.3. Graduates possess skill dimension of performance Education Content 2.1. Learning materials are in line with graduate competence formulation/design 2.2. School-based curriculum is developed according to the stipulated procedure 2.3. School is implementing the curriculum according to the regulation(s) Learning Process 3.1. Schools plan learning process according to the regulation(s) 3.2. Learning process is implemented accurately


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3.3. Supervision and authentic assessment are conducted during learning process

Education Assessment 4.1. Education assessment is implemented according to competence domain 4.2. Assessment technique(s) is/are objective and accountable 4.3. Education assessment is to be followed up 4.4. Assessment instrument(s) is/are to be in line with assessment aspects 4.5. Assessment needs to follow the procedure Teachers and Education Personnel 5.1. Teachers availability and competency are aligned with the regulation 5.2. Principals availability and competency are aligned with the regulation 5.3. Administration staff availability and competency are aligned with the regulation 5.4. Laboratory staff availability and competency are aligned 5.5. Librarians availability and competency are aligned with the regulation Facilities and infrastructure 6.1. Sufficient school student intake capacity 6.2. Schools possess proper and sufficient facilities and infrastructure 6.3. Schools possess complete and proper facilities and infrastructure Management 7.1. Schools conduct implementation planning 7.2. Program management is implemented according to the regulation 7.3. Principals are to show good performance in his/her school leadership 7.4. Schools manage MIS (Education) Funding 8.1. Schools provide cross-subsidy service 8.2. School operational load is aligned with the regulation 8.3. School implement sound fund management


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ANNEX 5: Sector Context – Additional Information

Quality of MoRA Teachers

1. In addition to high quality and effectively supported teachers, all schools require quality leadership from their

directors.47 Research in the Indonesian context points to the critical role of directors, particularly in the context of reforms

toward decentralized management, as highlighted in a recent World Bank report on school-based management in

Indonesia.48 For example, in a study undertaken in Merauke District, Werang and Lena49 showed that teachers’ job

performance was better when principals were effective leaders. Similarly, Arman and Manda,50 working in Maros District,

found that the competence of school principals, particularly in managing the learning environment, positively influenced

work motivation and the performance of teachers. Bandur51 reported that the incorporation of school councils into the

governance of schools in Indonesia as part of the education reforms has required school principals to deal with new

challenges, as has the need to ensure community participation in school governance. This research also identified the lack

of professional development for school leaders as a key challenge that needed to be addressed to improve school-based

management in Indonesia.52 Parker and Raihani argued that the well-functioning MoRA school typically has strong

principals able to work effectively by devolving responsibility, modeling exemplary behavior, and institutionalizing a clear

vision. The need to invest in CPD for school principals is thus well supported by existing research.

2. Improvements in system quality also require CPD for supervisors. According to Regulation of the Minister of

Religious Affairs No. 2/2012, supervisors of MoRA schools (pengawas) are civil service teachers who are appointed to a

functional position within the school with a responsibility to conduct academic and managerial supervision at schools. The

Arman and Manda study cited above considers the role of supervisors. It finds that improved competence of school

supervisors positively affected teachers’ work motivation and their job performance. Dimensions of supervisor

competency that influenced teacher performance included managerial supervision, academic supervision, and ability to

manage learning and achievement.

Financing

47 Branch, G.F; Rivkin, SG & Hanushek, E.A (2013). School Leaders Matter. Measuring the impact of effective principals. Education Next, 13 (1). 48 Fasih, T & Macdonald, K (2017). School-based management policies in Indonesia and their implementation at the school level. The World Bank and Australian Government. Sumintono, B; Sheyoputri, E.Y.A; Jiang, N; Misbach I.H & Jumintono (2015). Becoming a principal in Indonesia: possibility, pitfalls and potential. Asia Pacific Journal of Education. https://www.tandfonline.com/doi/full/10.1080/02188791.2015.1056595 49 Werang, B. R & Lena, L (2014). Relationship between principal’s leadership, school organisational climate, and teachers’ job performance at State Senior High Schools in Merauke Regency – Papua – Indonesia. International Journal of Education and Research, 2(6) 635-640. http://www.ijern.com/journal/June-2014/53.pdf 50 Arman, SBT & Manda, D (2016). The effect of school supervisors’ competence and school principals’ competence on work motivation and performance of Junior High School teachers in Maros Regency, Indonesia. International Journal of Environmental and Science Education, 11(15): 7309-7317. https://files.eric.ed.gov/fulltext/EJ1115494.pdf 51 Bandur, A. (2012). School-based management developments and partnership: Evidence from Indonesia. International Journal of Educational Development, 32:316-328. 52 Ibid, pg. 325.

https://www.tandfonline.com/doi/full/10.1080/02188791.2015.1056595

http://www.ijern.com/journal/June-2014/53.pdf

https://files.eric.ed.gov/fulltext/EJ1115494.pdf


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3. There are some similarities in the financing of schools under MoRA and MoEC but also important differences.

The education system under MoEC is highly decentralized, while MoRA is a centralized ministry. Most school costs under

MoEC are covered by fiscal transfers from the central level to the district and province levels, some of which are

earmarked for education use. An important example of these transfers are school operational grants, known as Bantuan

Operasional Sekolah (BOS), provided to all formal public and private schools on a per-student basis. Other forms of public

fiscal support for MoEC schools include salary payments for the 48 percent of teachers who are civil servants,53 as well as

funds for infrastructure (Dana Alokasi Khusus, DAK) and other transfers that make up most school operating costs. Formal

and non-formal schools under MoRA54 also receive BOS, while other forms of public fiscal support are limited. Informal

education institutions such as Diniyah Informal and Pesantren do not receive BOS. The public schools under MoRA are

largely funded from centrally managed resources, while private schools receive between 25 and 60 percent of funding

from private sources, varying according to the school and its location.55 Private schools under MoRA receive partial public

financing in the form of BOS, benefits for certified teachers, and salary payments for civil servants, which make up 8

percent of their teacher workforce, as well as limited financing from the province or district, varying according to the year,

the province/district in which they are located, and the nature of the relationship between the school and

province/district.56 Other funds necessary to deliver quality education services are the responsibility of the specific

foundation (yayasan) associated with the private school.57 See Figure A5.1 for illustrative flow of funds for formal pre-

tertiary education in Indonesia.

4. MoRA private schools are required to report education financing from non-government sources as per the BOS

Guidelines for Madrasahs, 2019, Chapter II, which governs all MoRA schools. However, this information is not at present

routinely requested or monitored by MoRA. According to government BOS Guidelines for Madrasahs,58 BOS is provided to

ease the cost burden to the community to achieve quality education. It was originally supported by the World Bank in

response to the 1998 economic crisis through the Scholarships and Grants Program, which was introduced as a large scale

crisis response program by the Indonesian Government to protect enrollments (through scholarships) and school

incomes.59 While government resources available to MoRA schools through BOS have increased almost 176 percent in real

terms since 2005 for the primary and 150 percent for junior secondary education levels,60 experience shows that many

schools lack the capacity to use those funds effectively and efficiently to deliver better learning outcomes for students.

53 Statistik Pendidikan 2017/18 (MoEC, 2018). 54 Formal schools under MoRA include Buddhist schools, Hindu schools, Christian and Kong Hu Chu schools as well as Islamic schools (Madrasahs and Diniyah Formal). These Buddhist, Hindu, Christian, Kong Hu Chu and Islamic schools as well as the non-formal Paket A, B, C follow the same national curriculum as all other schools in Indonesia but spend additional hours on religious subjects in the national curriculum. For the rest of this document, all of these formal and non-formal education institutions receiving public financing (i.e. BOS) under MoRA will be referred to as “MoRA schools.” Informal education institutions such as Pesantren which do not receive BOS and do not necessarily follow the national curriculum are not included under this label. 55 Madrasah Education Financing in Indonesia (ACDP, 2013). 56 Jumlah Pendidik RA, MI, MTs, dan MA Berdasarkan Status Kepegawaian. Statistik Pendidikan Islam 2015/16 (MoRA, 2017). 57 PP No. 48 Tahun 2008 tentang Pendanaan Pendidikan Ps 32 (3), 34 (4), 38 (1), 40 (4), 44 (1). 58 BOS Guideline for Madrasah 2019, Keputusan Dirjen Pendis (Director General Islamic Education Decree) No. 511/2019 dated January 25, 2019. 59 Evaluating the Performance of SGP and SIGP: A Review of the Existing Literature and Beyond. World Bank Working Paper Series No. 2004-03, Riado-Cano, C. and Filmer, D. 60 BOS unit cost is IDR 117,500 and IDR 162,250 per student per year in 2005 and is IDR 800,000 and IDR 1,000,000 per student per year in 2019, in primary and JSE level, respectively.


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The BOS guidelines do not provide schools with enough guidance on how to plan and implement the funding to achieve

the NES.61

Figure A5.1: Flow of funds for formal pre-tertiary education

Quality Assurance

5. Quality assurance takes place through the National Education Standards (NES) and the accreditation process,

though there are weaknesses in each mechanism, and all MoRA and MOEC schools follow the same national curriculum.

More than half of MoRA schools do not meet the required minimum NES. The standards cover eight areas, namely

education content, learning processes, student end-of-grade competencies, teacher and education personnel, equipment

and infrastructure, management, financing, and learning assessment (see Annex 4). Stakeholders use these standards to

measure the attainment of educational quality of a school both annually through self-evaluation, and the level of

accreditation of a school, measured every five years by BAN-SM. MoRA schools conduct a paper-based self-evaluation of

NES achievement using measurement instruments issued by the National Education Standard Institution (Badan Standar

Nasional Pendidikan, BSNP). Some schools attached to wealthy private foundations and strong school networks may be

able to meet the standards and fully support student learning, while many schools have trouble meeting minimum

61 Law No. 20/2013 Sections 9 to 14 and PP No. 15/2015 on the National Education Standards.


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standards, due at least in part to lack of funds. The accreditation process, which is mandatory for all schools, measures 119

indicators aligned under the eight areas of the NES; thus accreditation status gives a measure of fulfillment of the NES.

Accreditation classifications are A, B, C or ‘unaccredited’, which signifies either that accreditation has not been applied for

or was not given. In total, 93 percent of public MoRA schools are accredited A or B, while 55 percent of private MoRA

schools are C or unaccredited, indicating unsatisfactory learning conditions.62 These accreditation levels correlate closely

with learning levels (Figure A5.2). While correlation is not causation, it is reasonable to expect that schools that improve

their NES and accreditation score, which is based on the NES, will also move toward improved student learning outcomes.

Figure A5.2: Average National Test scores and school accreditation levels for MoRA schools

Source: Puspendik 2017/2018 and EMIS 2018. Note: The Ujian Nasional (UN) or national exam score range is from 0 to 100. The number of subjects tested on UN are four and six for junior and senior secondary, respectively.

Weak Management and Monitoring systems

6. MoRA needs to acquire more information about the education production function. Some necessary conditions

for effective education system management are information about key inputs such as how schools are allocating

resources, how they can allocate resources to achieve standards, how teachers can improve instruction, and what

students are learning (outputs). MoEC piloted an online electronic school planning system (Rencana Kegiatan dan

Anggaran Sekolah berbasis Elektronik, e-RKAS) in five pilot areas in 2017 and 2018, with some positive experiences

reported. The system includes all budget resources received by schools and helps MoEC, districts and the schools

themselves to identify areas of strengths and weaknesses in order to prioritize the use of resources in achieving the eight

NES. In 2018, MoRA, with support from the World Bank and the Australian Government, introduced an Electronic Planning

62 At the primary, junior and senior secondary levels of MoRA schools, accreditation results indicate low scores on teacher and education personnel, student end-of-grade competencies, learning processes as well as management and equipment and infrastructure. An example of an infrastructure weakness is lack of electricity, lack of classrooms. For personnel, common examples include unqualified teachers and administrative staff, inconsistency between the academic background of the teacher and the subject taught.


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and Budgeting System for MoRA schools (e-RKAM) in 60 schools in Jombang District and in Yogyakarta Province. The BOS

Guidelines for Madrasahs, 2019, Chapter II, states that MoRA’s provincial offices can monitor fees that are collected by the

formal religious schools, and any education contributions from parents and the ‘community’ to ensure that funds are

managed not for profit and are transparent and accountable. MoRA’s provincial offices can also cancel any fee that is

collected by formal religious schools if it constitutes cause for public concern, for example, overly expensive tuition fees.

This is managed at the provincial level, not the district level, due to capacity limitations within district offices for financial

oversight.

7. There is strong commitment on the part of MoRA and the Government to strengthen human capital through

improved management of education services and systems. To improve system outcomes, decision-makers at the school,

district, provincial, and central levels of MoRA need to have essential, accurate, and up-to-date information on system

functionality, including financing, the education workforce, student enrolment, and student learning outcomes. Figure

A5.3 presents a map of the current data systems within MoRA.63

Figure A5.3: MoRA data system map

63 The data presented here and in following sections on MoRA’s education data systems are based on information collected by the World Bank during project preparation, including field visits to schools and extensive interviews at the school, district, province and central level with support from NZTE, as well as the Australian Government.

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