Completion Report

Project Number: 42099-013 Loan Number: 2928 Grant Number: 0343 November 2021

Indonesia: Polytechnic Education Development

Project This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS

Currency unit – rupiah (Rp)

At Appraisal At Project Completion (10 August 2012) (31 December 2019)

Rp1.00 = $0.000104 $0.000071 $1.00 = Rp9,142 Rp14,099

ABBREVIATIONS

ADB – Asian Development Bank APFS – audited project financial statements COT – center of technology COVID-19 – coronavirus disease CTS – credit transfer system DGHE – Directorate General of Higher Education DMF – design and monitoring framework EIRR – economic internal rate of return GAP – gender action plan IRM – Indonesia Resident Mission MOEC – Ministry of Education and Culture MORTHE – Ministry of Research, Technology and Higher Education MOU – memorandum of understanding MP3EI – Master Plan for Acceleration and Expansion of Indonesia’s

Economic Development 2011–2025 NSF – National Skills Fund PEDP – Polytechnic Education Development Project PIU – project implementation unit PMU – project management unit RPL – recognition of prior learning

TVET –

technical and vocational education and training

NOTES

(i) The fiscal year (FY) of the Government of Indonesia ends on 31 December. “FY”

before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 31 December 2020.

(ii) In this report, “$” refers to United States dollars unless otherwise stated.

Vice-President Ahmed M. Saeed, Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Director Jiro Tominaga, Country Director, Indonesia Resident Mission

(IRM), SERD Team leader Sutarum Wiryono, Senior Project Officer, IRM, SERD Team members Dyna Susanti, Operations Assistant, IRM, SERD

Fitrina Muchtar, Associate Financial Control Officer, IRM, SERD Fook Yen Chong, Senior Social Sector Specialist, Human and

Social Development Division, SERDa Nao Ikemoto, Principal Portfolio Management Specialist, IRM, SERD Suharyani, Senior Procurement Officer, IRM, SERD Utami Hendrarini, Senior Operations Assistant, IRM, SERD

Yutirsa Yunus, Associate Project Analyst, IRM, SERD aOutposted to the Indonesia Resident Mission.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

BASIC DATA i

I. PROJECT DESCRIPTION 1

II. DESIGN AND IMPLEMENTATION 1

A. Project Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 5 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 6 G. Consultant Recruitment and Procurement 7 H. Gender Equity 8 I. Safeguards 8 J. Monitoring and Reporting 9

III. EVALUATION OF PERFORMANCE 9

A. Relevance 9 B. Effectiveness 10 C. Efficiency 11 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 12 G. Performance of Cofinancier 13 H. Performance of the Asian Development Bank 13 I. Overall Assessment 13

IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14

A. Issues and Lessons 14 B. Recommendations 15

APPENDIXES

1. Design and Monitoring Framework 16

2. List of Project Polytechnics, Amount of Loan Funding, and Polytechnics Visited Online During Project Completion Mission 18

3. List of Polytechnics, Study Programs, Student Enrollment, and Partner Industries 20

4. Project Cost at Appraisal and Actual 28

5. Project Cost by Financier 29

6. Disbursement of ADB Loan and Grant Proceeds 31

7. Contract Awards of ADB Loan and Grant Proceeds 34

8. Fund Channeling Mechanism 36

9. Appraisal and Actual Implementation Schedule 38

10. Chronology of Main Events 39

11. Project Management Organization Structure 40

12. Summary of Consultant Recruitment and Procurement 41

13. Gender Action Plan Implementation and Achievements 44

14. Status of Compliance with Loan Covenants 60

15. Economic Reevaluation 65

16. Grant 0343-INO Support by the Government Of Canada 71

BASIC DATA A. Loan and Grant Identification

1. Country Republic of Indonesia 2. Loan number and financing source

Grant number and financing source 2928 (ordinary capital resources) 0343 (Government of Canada)

3. Project title Polytechnic Education Development Project (PEDP)

4. Borrower Republic of Indonesia 5. Executing agency Ministry of Education and Culture 6. Amount of loan

Amount of grant $75.00 million $4.95 million

7. Financing modality Project loan and grant B. Loan and Grant Data

1. Appraisal – Date started – Date completed

1 December 2011 23 December 2011

2. Loan negotiations – Date started – Date completed

10 September 2012 10 September 2012

3. Date of Board approval (loan) Date of approval (grant)

31 October 2012 12 April 2013

4. Date of loan agreement Date of grant agreement

21 November 2012 9 December 2013

5. Date of loan effectiveness – In loan agreement – Actual – Number of extensions

Date of grant effectiveness – In grant agreement – Actual – Number of extensions

19 February 2013 7 January 2013 None 7 June 2013 27 February 2014 None

6. Project completion date – Appraisal – Actual

31 December 2017 30 June 2019

7. Loan closing date – In loan agreement – Actual – Number of extensions Grant closing date – In grant agreement – Actual – Number of extensions

30 June 2018 31 December 2019 1 (18 months) 30 June 2018 31 December 2019 1 (18 months)

8. Financial closing date – Actual

6 October 2021

9. Terms of loan – Interest rate – Maturity (number of years) – Grace period (number of years)

London interbank offered rate + 0.60% 12 years 6 years

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10. Disbursements

a. Dates

Initial Disbursement Loan: 20 May 2013 Grant: 30 April 2014

Final Disbursement Loan: 13 July 2020 Grant: 9 July 2020

Time Interval Loan: 85.5 months Grant: 75.4 months

Effective Date

Loan: 7 January 2013 Grant: 27 February 2014

Actual Closing Date Loan: 31 December 2019 Grant: 31 December 2019

Time Interval Loan: 83.9 months Grant: 71.1 months

b. Amount ($ million)

Category

Original Allocation

(1)

Increased during

Implementation (2)

Canceled during

Implementation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disbursed

(5)

Undisbursed Balance (6 = 4–5)

Loan Equipment 27.25 (10.76) 0.00 16.49 15.99 0.50 Capacity development

0.00 0.00 0.00 0.00 0.00 0.00

Consulting services

2.20 (0.22) 0.00 1.98 1.74 0.24

Program and material development

1.90 0.11 0.00 2.01 1.65 0.36

Studies, surveys, and workshops

1.40 (0.69) 0.00 0.71 0.71 0.00

National Skills Fund

38.10 15.21 0.00 53.31 48.34 4.97

Social marketing and advocacy

0.55 (0.35) 0.00 0.20 0.20 0.00

Project management

0.00 0.00 0.00 0.00 0.00 0.00

Contingencies 3.60 (3.30) 0.00 0.30 0.00 0.30

Total 75.00 0.00 0.00 75.00 68.63 6.37 Grant Capacity development

1.00 0.00 0.00 1.00 0.85 0.15

Consulting services

1.15 0.04 0.00 1.19 1.17 0.02

Program and material development

0.50 (0.50) 0.00 0.00 0.00 0.00

Studies and workshops

1.00 (0.23) 0.00 0.78 0.91 (0.14)

Social marketing 1.00 0.26 0.00 1.26 1.18 0.08 Miscellaneous 0.30 0.42 0.00 0.72 0.00 0.72 Total 4.95 0.00 0.00 4.95 4.12 0.83 Notes: 1. Reallocation of loan and grant proceeds was made on 9 March 2019 based upon the borrower’s request dated 14

January 2019. 2. A first partial loan cancellation of $2.84 million was made on 3 July 2020. A second partial loan cancellation of

$3.53 million was made on 26 November 2020. A first partial grant cancellation of $0.11 million was made on 26 November 2020 based upon the executing agency’s confirmation letters dated 5 and 6 November 2020 of final disbursement. These cancellations of undisbursed balance were undertaken as part of the loan and grant financial closure.

3. The total disbursed amount for the grant excludes the miscellaneous expense.

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C. Project Data

1. Project Cost ($ million)

Cost Appraisal Estimate Actual

Foreign exchange cost 96.65 85.16 Local currency cost 0.00 0.00 Total 96.65 85.16

2. Financing Plan ($ million)

Cost Appraisal Estimate Actual

Implementation cost Borrower financed 13.10 5.93 ADB financed 75.00 68.63 Other external financing (CIDA) 4.95 4.84 Total implementation cost 93.05 79.39 Interest during construction costs Borrower financed 3.60 5.77 ADB financed 0.00 0.00 Other external financing (CIDA) 0.00 0.00 Total interest during construction cost 3.60 5.77

CIDA = Canadian International Development Agency.

3. Cost Breakdown by Project Component ($ million)

Component Appraisal Estimate Actual

A. Investment Costs 1. Equipment 27.25 15.99 2. Capacity development 7.50 1.86 3. Consulting services 3.35 2.91 4. Program and material development 2.40 1.65 5. Studies and workshops 2.40 1.62 6. National Skills Fund 38.10 48.34 7. Social marketing and advocacy 1.55 1.38 8. Project management 5.70 4.92 9. Taxes and duties 0.90 0.00 Subtotal (A) 89.15 78.67 B. Contingencies 3.60 0.00 C. Interest and Commitment Charges 3.90 5.77 D. Miscellaneous 0.30 0.72 Total (A+B+C+D) 96.65 85.17

4. Project Schedule

Item Appraisal Estimate Actual

Loan 2928-INO Dates of contracts with consultants

Strengthening polytechnic education and project implementation (quality- and cost-based selection)

Q4/Y0

Strengthening polytechnic education and project implementation (individual consultants selection)

Q4/Y0

National Skills Fund—competitive grants and scholarships Q2/Y1 Monitoring and evaluation Q1/Y1 Nov 2016 Study on review regulatory and governance framework Q4/Y1 Study on polytechnic graduate relevance and employability Q1/Y2 Oct 2018 Study on strengthening polytechnic—industry linkages Q1/Y2 Social marketing strategy Q4/Y1 Feb 2016

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Item Appraisal Estimate Actual

Financial management specialist Aug 2013 Information management specialist Information management specialist

Mar 2014 Oct 2015

Procurement specialist Procurement specialist Procurement specialist for completion report

Jun 2013 Dec 2014 Sep 2019

Capacity development cum project management Oct 2015 Individual consultant for curriculum development Oct 2015 Individual consultant to prepare learning outcome Sep 2015 Individual consultant for competency testing unit Oct 2015 Individual consultant for planning fiber optic network Nov 2015 Gender specialist Gender specialist

Mar 2016 Jun 2017

Individual consultant for teaching factory—chips Individual consultant for teaching factory—juice

Oct 2016 Sep 2016

Public accountant 2017 Public accountant 2018

Dec 2017 Jun 2019

Polytechnic profile study Apr 2019 Project completion report consulting services Jun 2019 Project management consultant Jul 2019

Civil works contracts Date of award Q2 2013 Oct 2014–Aug 2019 Completion of work Dec 2019

Equipment, supplies, and furniture First procurement Q3 2013 Oct 2013 Last procurement Q1 2016 Oct 2019

Grant 0343-INO

Dates of contracts with consultants

Organizing study visit to Canada Nov 2015 Training provider for applied research in Canada Nov 2015 Internship program on establishing center of technology (COT)

Mar 2016

Lead consultancy services for COT Dec 2016 Study on carbon footprint and green campus Jun 2017 Advocacy campaign specialist Nov 2017 Photographer for production of branding materials Nov 2017 Strategic media placement consultant Dec 2017 Training program in safety laboratory Aug 2018 Book writing on PEDP success stories Oct 2018 Book writing on COT Oct 2018 Book writing on gender mainstreaming in polytechnic Oct 2018 Consultant for media promotion research Jul 2019

Other activities a Workshop and study on recognition of prior learning Oct 2014 Workshops on developing and promoting COT Oct 2014 Training provider for preparation and facilitation of study tour of polytechnic staff to Canada

Nov 2014

Workshop on dissemination of COT implementation Nov 2016 Workshop on leadership training for polytechnic leaders and future leaders

Sep 2017

Strategic outdoor advertising placement (billboard) Nov 2017 PEDP branding materials production Dec 2017 Workshop on leadership training for polytechnic leaders and future leaders

Dec 2017

Workshop for evaluation of applied master study program in polytechnic

Jun 2018

Workshop on pilot implementation of recognition of prior learning (RPL) in polytechnics

Jun 2018

Leadership development training and institutionalization Jul 2018

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Workshop on consolidation for implementation of mainstreaming gender strategic plan in polytechnics

Aug 2018

Self-managed: planning and review for development of polytechnic education development project books

Aug 2018

Workshop on integration gender action plan into monitoring and reporting system

Sep 2018

Senior management visit and selected polytechnic for Canada–Indonesia polytechnic partnership program

Sep 2018

Workshop updating teaching materials in 5 industry sectors Sep 2018 Workshop on lecturer capacity development for teaching methodology in 5 sectors

Sep 2018

Organizer of the international conference and PEDP Expo Oct 2018 Workshop on implementation of RPL in polytechnics Oct 2018 PEDP branding material production in 2018 Nov 2018 National seminar on gender equality and sustainable industry Nov 2018 Serial workshops on gender mainstreaming strategy development, training of trainer on gender, and gender sensitive monitoring system

Dec 2018 Workshop on dissemination of COT implementation progress in polytechnics

Dec 2018

Service provider to capacity development on artificial intelligence in robotics and automation

Jul 2019

Service provider to capacity development in big data analytics

Jul 2019

Workshop COT for tourism curriculum development in polytechnic education

Aug 2019

PEDP = Polytechnic Education Development Project, Q = quarter, Y = year. a These activities were managed under forced account. Source: Asian Development Bank.

5. Project Performance Report Ratings

Implementation Period Single Project Rating

From 1 January 2013 to 31 March 2013 On track From 1 April 2013 to 30 June 2013 On track From 1 July 2013 to 30 September 2013 Potential problem From 1 October 2013 to 31 December 2013 Potential problem From 1 January 2014 to 31 March 2014 Potential problem From 1 April 2014 to 30 June 2014 Actual problem From 1 July 2014 to 30 September 2014 Actual problem From 1 October 2014 to 31 December 2014 Actual problem From 1 January 2015 to 31 March 2015 Actual problem From 1 April 2015 to 30 June 2015 Actual problem From 1 July 2015 to 30 September 2015 Actual problem From 1 October 2015 to 31 December 2015 Potential problem From 1 January 2016 to 31 March 2016 On track From 1 April 2016 to 30 June 2016 On track From 1 July 2016 to 30 September 2016 On track From 1 October 2016 to 31 December 2016 On track From 1 January 2017 to 31 March 2017 On track From 1 April 2017 to 30 June 2017 Potential problem From 1 July 2017 to 30 September 2017 Potential problem From 1 October 2017 to 31 December 2017 Potential problem From 1 January 2018 to 31 March 2018 On track From 1 April 2018 to 30 June 2018 On track From 1 July 2018 to 30 September 2018 On track From 1 October 2018 to 31 December 2018 On track From 1 January 2019 to 31 March 2019 On track From 1 April 2019 to 30 June 2019 On track From 1 July 2019 to 30 September 2019 On track From 1 October 2019 to 31 December 2019 On track

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D. Data on Asian Development Bank Missions

Name of Mission Date No. of

Persons No. of

Person-Days Specialization of Members

Loan inception 11–22 Feb 2013 3 8 a,b,c Loan review 1 7–18 Jan 2014 3 6 a,b,c Loan review 2 9–17 Dec 2014 1 5 b Loan review 3 23–24 Jan 2015 1 1 b Loan review 4 6 Jul–28 Aug 2015 2 16 b,d Special loan administration 5 Sep 2015 1 1 b Midterm project review 11–17 Nov 2015 1 4 b Loan review 5 27 Jul–15 Aug 2016 1 8 b,c Loan review 6 6–14 Mar 2017 3 7 a,b,c Loan review 7 22–29 Nov 2017 4 2 a,b Loan review 8 28 Jun–11 Jul 2018 2 7 b,c Loan review 9 30 Aug–1 Sep 2018 1 3 b Loan review 10 2–5 Dec 2018 1 4 b Loan review 11 20 Feb–25 Mar 2019 2 9 b,c Special loan administration 18 Jun–20 Jul 2019 1 7 b Loan review 12 7–15 Oct 2019 1 7.5 b Project completion review 24 Aug–27 Oct 2020 5 50 b,c,e,f,f

a = social sector specialist, b = project officer (education), c = project analyst, d = procurement officer, e = social sector specialist (skills development), f = staff consultant.

I. PROJECT DESCRIPTION 1. The Polytechnic Education Development Project (PEDP) supported the Government of Indonesia’s long-term objectives of promoting rapid economic growth, increasing connectivity, and developing human resources.1 The vocational education strategy recognized the nexus between skills availability and the needs of rapid industrialization in Indonesia. This was articulated in the Government's Master Plan for Acceleration and Expansion of Economic Development (MP3EI) 2011–2025, seeking to accelerate economic growth, create jobs, and expand economic development to poorer regions of the country. Six geographic corridors and five industrial priority sectors were especially identified for a “self-sufficient, advanced, equitable, and prosperous Indonesia.”2 Development of technical and vocational education and training (TVET) was key to promoting competitiveness and enhancing productivity through a quality education system. Polytechnic education was to meet employers’ needs for enhanced technical skills while fulfilling the earning expectations of graduates. The project design and monitoring framework (DMF), including an assessment of project achievements, is in Appendix 1.

II. DESIGN AND IMPLEMENTATION A. Project Design and Formulation 2. The PEDP was designed to improve the quality and relevance of polytechnic education through enhancement of equitable access, graduate employment outcomes, subsector management, and strengthening quality and relevance of study programs. The project aimed to support workforce development in five priority industry subsectors as identified in the MP3EI. It was in accordance with Asian Development Bank’s (ADB’s) country partnership strategies (including the country operations business plan, 2011–2013), which identified low competitiveness of firms as a constraint impeding rapid economic growth. Industry associations identified improving workers’ low skills and low productivity as critical to medium-term economic development plans. Over the past several years, the government’s policy stance on boosting productivity has been sustained and it continues to be relevant. In fact, it become even more important as Indonesia pursues the Industry 4.0 agenda.3 3. The project design sought to strengthen partnerships between polytechnics and employers in the priority industries and businesses. Skills requiring upgrading were identified in consultation with relevant industrial associations, while considering that demand for skilled labor in the priority sectors will increase rapidly with application of new industrial technologies. The PEDP was thus designed to address both quantitative and qualitative changes in the tertiary TVET subsector. The project design envisaged a streamlined system of training, testing, and certification. Project interventions sought to triangulate between employers’ demand for skills and TVET’s pedagogical capability to promote, test, and certify learning in polytechnics. The TVET subsector also needed to nurture a competitive and entrepreneurial culture cutting across the public and private sectors. The design envisaged combining learning acquired in school classrooms with work-based training in companies, and it explicitly addressed concerns of private

1 ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Republic

of Indonesia for the Polytechnic Education Development Project. Manila. 2 MP3EI focused on six geographic economic corridors included Bali and Nusa Tenggara, Java, Kalimantan, Papua

and Kepulauan Maluku, Sulawesi, and Sumatera. The identified priority industrial sectors included manufacturing, infrastructure, mining, agroindustry, and tourism. Logistics was added during implementation.

3 Discussion of Industry 4.0 in Indonesia comprises (i) physical cyber systems, (ii) internet of things, (iii) cloud computing, and (iv) cognitive computing. See the recently prepared ADB. 2020. Innovate Indonesia—Unlocking Growth Through Technological Transformation. Manila.

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polytechnics. The financing plan design included provision of the National Skills Fund (NSF), whereby about 50% of ADB’s $75 million in total loan financing would be accessed by public and private polytechnics on a competitive basis and used for any investments most needed by polytechnics. The PEDP design’s competitiveness and responsiveness expectations of the polytechnics were thus matched by the financing plan’s provision of the NSF. 4. The project was well structured, logical, and appropriate. Polytechnics were recognized as institutions vital to the country and needing to secure a place for themselves within a complex of relationships vis-à-vis universities and other higher education institutions. Some of these relationships were not fully fleshed out at appraisal (para. 14), however. The Directorate General of Higher Education (DGHE), Ministry of Education and Culture (MOEC), and project management unit (PMU) had to work out the implementation steps and procedures in consultation with polytechnics and other stakeholders. B. Project Outputs 5. The project achieved the intended outputs (Appendix 1). The project supported 34 public and private polytechnics through provision of better learning equipment, strengthened the teachers’ capacity through training and upgrading on subject matters and teaching pedagogy, revised curriculum, and improvement of learning materials. The project also introduced a system for testing and certifying students’ skills and competence through credit transfer system (CTS) and recognition of prior learning (RPL). These improvements were done in collaboration with industry and business partners.4 6. The number of students enrolled in the study programs that received project assistance increased from 17,701 in 2012 to 25,718 in 2019, an increase of 45% (against the target of 30%) with an female students increase of 34% of the total enrollment (target: 30%). The outcome indicator for the number of polytechnic graduates entering the workforce was also achieved. The number of graduates entering the five priority industrial sectors increased by 61.4% (target: 25%) during 2012–2019 period, of which 32.9% (target: 15%) were female. These outcomes were achieved as a direct result of the progress in project outputs briefly described in paras. 8–20.5 Appendix 3 summarizes sex-disaggregated enrolment data in project polytechnics. 7. Output 1: Improved quality and relevance of the polytechnic system. Output 1 was fully achieved. It accounted for the largest expenditure under the PEDP. 8. Equipment. Despite a reduction of the budget allocation for the equipment category (from $27.25 million at appraisal to $15.99 million at completion), the project delivered the intended quantity of equipment to the polytechnics at the required quality through the NSF. The project procured 563 packages of equipment for 34 polytechnics. The selection of equipment to be

4 The project completion report was prepared during the coronavirus disease (COVID-19) pandemic, when major

institutions, including the Asian Development Bank (ADB) and Indonesia Resident Mission (IRM), were locked down. Therefore, the conventional method of visiting polytechnics in-person to see them functioning, confirm the procured equipment are in place, and inspect civil works were not feasible. The project completion review mission worked through virtual online meetings and discussions. Government officials, functionaries, and polytechnics kindly cooperated and prepared documents responding to the completion review mission’s concerns and queries. They shared project information through presentations, including photographic evidence and videos about the equipment and facilities in support of their narration. Appendix 2 provides a complete list of 34 project polytechnics, indicating their location across the country, their type, and the amount of project support received. Among these, 13 selected polytechnics were visited online during the project completion review mission.

5 The increase in enrollment under the project mostly relates to Diploma 3, Diploma 4 or higher levels. It does not include increase in enrollment due to community colleges established in some cities by polytechnics.

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procured was made by each polytechnic on its own to align with the revised curriculum. The list of equipment was then consolidated into the procurement plan approved by the PMU and ADB. The new equipment enhanced hands-on learning process at polytechnics. For some private polytechnics, this was the first time they had received government-financed equipment sourced from externally borrowed funds. 9. Teachers. The TVET system in Indonesia faced severe constraints in recruiting, mobilizing, and retaining qualified technical teachers. The PEDP helped address this constraint by enhancing teacher's qualifications and upgrading their knowledge and skills. As many as 279 lecturers (target: 39) were provided scholarships for studies at master’s and doctoral degree levels. Of these, 88 (32%) were female (target: 20%). The number of overseas trainees was 208 (target: 200), of which 52 (25%) were female trainees (target: 20%). Domestic training was provided to 2,019 participants, of which 569 (28%) were female (target: 20%). The program also benefitted from the government’s own financial resources for scholarship programs. Details are given in Appendix 1. 10. Upgrading academic programs. The PEDP supported polytechnics in opening new study programs at diploma (D3 and D4) and master’s degree (S2) level in response to the labor market needs. At project completion, 12 applied master’s programs (target: 5) had been developed in the areas related to priority industries including infrastructure engineering, agricultural business, electrical engineering, informatics, computer engineering, telecommunication engineering, tourism, and waste processing. The establishment of master’s degree programs faced difficulties due to internal regulation or nomenclature issues, as most of the rules governing master’s programs were geared for academic stream and hence were not straightforwardly applicable to polytechnics. The PMU, with guidance from MOEC, was ultimately able to resolve the issues and the 12 master’s degree programs were established. Only one program, supporting the mining sector, was still under preparation as of December 2019. 11. Testing and certification. The project established 31 licensed professional certification bodies, equipped with 230 competency testing units. 6 In addition, the PEDP supported polytechnics in preparing skill assessment instruments and manuals for more than 200 skill competencies in line with the Indonesian qualification framework. The target of students tested and certified in national or international competency was exceeded (i.e., 25,019 certificates or 104% of the DMF target of 24,000 certificates) with 35% female (target: 20%). 12. Output 2: Expanded and more equitable access to polytechnic institutions. Output 2 was partially achieved. 13. The implementation of Output 2 started only in 2017, as new institutional rules needed to be developed especially regarding the credit transfer system (CTS) and recognition of prior learning (RPL). The vocational education system in Indonesia was expected to follow a certain standard of competency-based curriculum and so the system does not allow mobility across levels without a CTS that was acceptable to all stakeholders across schooling levels, institutions, and the world of work.7 Further, the RPL enrollment targets in the DMF were not based on demand

6 In all, 43 polytechnics in Indonesia have professional certification institutes certified by the National Agency for

Professional Certification and 31 polytechnics were supported under the PEDP (Indonesia: Ministry of Research, Technology and Higher Education. 2019. Polytechnic Education Development Project—Aim Higher, Achieve More. Second Edition. Jointly with ADB, and the Jakarta Post. Edited by Sutarum Wiryono. p. 35).

7 Ministry of Research and Technology Regulation No. 26/2016 concerning RPL, which began implementation in 2017 (MORTHE. 2019. Project Completion Report. Polytechnic Education Development Project. p. 42.).

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data.8 The RPL implementation arrangements—whether through formal, nonformal, or informal education, or based on learning through work experience—had to be set up and agreed by the training institutions, MOEC (as administrator), and industry. The Ministry of Research, Technology and Higher Education (MORTHE) and PMU stepped in and devised new arrangements to align credits earned from RPL and from the regular academic system. In addition, the new arrangements enable a polytechnic to register its RPL students into the national higher education admission system.9 14. Polytechnics signed memoranda of understanding (MOUs) with 63 secondary vocational schools (SMKs) (target: 30) to implement CTS and RPL, but due to the late approval of the operational guidelines (para. 13), only 2,261 students received CTS credits (19% of the 12,000 target). Of these, 507 were female (22% against the target of 30%). Under the RPL program, implementation of which started in early 2018, 1,963 SMK students (16% of the 12,000 target) were certified. Of these, 468 (24%) were female (target 20%). In addition, 8,274 (69%) SMK students were awarded D1 diplomas under the continuing vocational education program. Of these, 2,762 (33%) were female (target 20%). Scholarship provision was successful, awarding to 4,879 students or nearly 2.5 times the target. The female scholarship recipients accounted for 38% (1,874 people) as against the target of 20%. The loan provided scholarships to 1,994 students as compared to the target of 2,000 (99.7%). Of these, 833 students, or 42%, were female (target 20%). In parallel, the government provided scholarships through various schemes to 2,885 students (37% female). 15. Output 3: Increased private sector involvement and promotion of entrepreneurial culture to strengthen polytechnic graduate competitiveness. Output 3 was fully achieved. The PEDP enhanced private sector involvement in developing polytechnic education. Polytechnics were encouraged to forge active relationships with private industry in determining curricular standards, testing, and certification. The PEDP sought to inculcate a spirit of competitiveness and culture of entrepreneurship among the graduates. These measures were critical for facilitating graduates’ entry into high-productivity jobs. 16. Industries’ endorsement of 82 revised study programs exceeded the target of 20 such programs, and 421 formal partnerships through MOUs exceeded the target of 13. The private sector industries involved included manufacturing, electronics, mining, food processing, palm oil, fisheries, aquaculture, tourism, rubber, sugar, as well as coconut wood and derived products. Industries requested that polytechnics assist and cooperate with them particularly in developing computer-based product design and prototypes. Polytechnics sought industries’ guidance in curriculum development, testing, and certification of competencies. These win–win relationships resulted in positive spillover in other areas such as student internships, work placements, joint research, and implementation of research findings. 17. Responding to the PEDP’s emphasis on forging active linkages with business and industry, 21 polytechnics established centers of technology (COTs) on their premises. Still in their nascent stages but growing rapidly, COTs crystallized the long-standing idea in Indonesia of a “teaching factory,” with two-way links between the world of learning and the world of work. COTs are now emerging as platforms to nurture the nexus between educators and employers. In COTs, students work on practical problems, create prototype products, engage with local industries, and

8 Technical Assistance 7554-INO: Analytical and Capacity Development Partnership (ACDP), Study No. 26: Preparing

Skilled and Highly-skilled Manpower for Indonesia’s Modernizing Maritime Transportation Sector. 9 The Directorate of Learning and Student Affairs of DGHE initiated an RPL pilot program in 2013 in selected public

polytechnics, but there arose an issue of aligning the admission of the students under RPL and the DGHE database record system. This constrained RPL implementation (PMU, verbal confirmation during mission, 2019).

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develop the feel of a workplace. Local businesses are beginning to take advantage of COTs, tap the skilled students proficient in computers and new technologies. COTs are also beginning to generate small amounts of revenue for polytechnics as they provide training programs and consulting for local industries.10 18. Output 4: Strengthened governance and management of polytechnic education. Output 4 targets were exceeded. The PEDP strengthened the quality of supervision and management of polytechnics to make them more productive. 19. During project implementation ADB provided hands-on training in financial management, disbursement, and procurement to 510 DGHE and polytechnic management and staff members (340% of the target), of which 148 participants were female (29%). Monitoring and reporting systems for 34 project polytechnics were established and updated regularly with the support of consultants. Activities related to monitoring and evaluation and project implementation support from the PMU are described in para. 33. The PMU established an innovative competitive mechanism for selecting public and private polytechnics for assistance under the NSF. The PMU invited all public and private polytechnics to submit proposals for improving and upgrading study programs related to the priority industrial sectors. The PMU received 83 proposals from polytechnics across the country in three batches. Upon review and evaluation by an expert group comprising academics, industry representatives, and research institutions, the PMU approved 27 proposals (target 25) from 21 polytechnics. These polytechnics (15 public and 6 private) combined with 13 preselected public polytechnics, constituted the 34 polytechnics (28 public and 6 private) supported under the PEDP (Appendix 2).11 Project implementation units (PIUs) and procurement units in polytechnics working with user units under the overall leadership of polytechnic directors took advantage of this opportunity to build their capacity, especially in basic financial management of projects. Almost all those polytechnics visited had conducted biannual tracer studies to collect data and information about their graduates’ employment and earnings, as required for curriculum development in line with the Indonesian qualification framework and accreditation system. C. Project Costs and Financing 20. At appraisal, the total project cost had been estimated at $91.70 million, including $75 million financed by ADB’s ordinary capital resources and government counterpart funding of $16.70 million. In 2013, additional grant financing of Can$5 million (equivalent to $4.95 million) from the Government of Canada increased total project resources to $96.65 million (para. 47). Of the total financing, the NSF ($38.1 million) and equipment for polytechnics ($27.25 million) accounted for more than 87% of the loan. At completion, the total cost was $85.17 million. Compared with appraisal estimates, the actual costs were lower by $11.48 million, mainly due to depreciation of the Indonesian rupiah (Rp) against the US dollar and because project expenditures were incurred in local currency. Appendix 4 compares actual project costs with appraisal estimates. 21. Reallocations were made during implementation. On 23 October 2017, ADB approved the government’s request to reallocate loan proceeds from Category 1 (equipment for 13 preselected polytechnics) to Category 5 (NSF) to enable the larger group of competitively selected polytechnics to access uncommitted loan funds originally allocated to the small group of

10 Five polytechnics have developed COTs into independent centers, namely Bandung Manufacturing Polytechnic

(POLMAN Bandung), Bandung State Polytechnic (POLBAN), Surabaya State Electronics Polytechnic (PENS), Surabaya State Shipbuilding Polytechnic (PPNS), and Pontianak State Polytechnic (POLNEP).

11 State Polytechnic, Medan could not implement the project. Hence, the PEDP involved only 33 polytechnics.

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preselected polytechnics. In addition, grant proceeds were reallocated to enable the project to finance additional needs for capacity development, consulting services, and reserve for contingency of foreign exchange currency loss. At project completion, the actual project cost was $78.68 million excluding interest and commitment charges of $5.77 million and miscellaneous grant expenses of $0.72 million. Of the total, ADB financed $68.63 million, the government $5.93 million, and the Government of Canada $4.84 million. Appendix 5 compares project costs by financiers at appraisal and completion. Based upon the actual project cost, ADB approved (i) partial loan cancellation of $2.84 million on 3 July 2020, and (ii) final loan cancellation of $3.53 million and grant cancellation of $831,937.57 on 26 November 2020. D. Disbursements 22. The proceeds were disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time) through advance fund procedure using a special account established at the Bank of Indonesia. In the first 3 years, the approval of annual budget release was delayed due to budgetary procedures, resulting in slow disbursement. Along with the procurement progress, disbursements started to accelerate in 2016 and peaked in 2019. At financial closing, total loan proceeds of $68.63 million (92% of the original loan amount) and total grant proceeds of $4.12 million (83% of the original grant amount) had been disbursed. Appendix 6 outlines annual disbursements and Appendix 7 contract awards. The project’s fund channeling system is in Appendix 8. E. Project Schedule 23. ADB approved the PEDP on 31 October 2012 and declared it effective on 7 January 2013. The grant additional financing was approved on 12 April 2013 and became effective on 27 February 2014. The project implementation was planned for 6 years, with an original closing date of 30 June 2018. The progress was slow during 2013–2014, because (i) implementation arrangements for some components had not been fully described at appraisal, especially in relation to Output 2 (para. 13); and (ii) there were delays in release of annual budget by the government, particularly in relation to budget revision and/or reallocation (para. 22). This shortened the window for processing bids and squeezed the time for implementing activities. These factors resulted in delayed completion of project outputs, and the project period was extended by 1.5 years from 30 June 2018 to 31 December 2019. The project was financially closed on 6 October 2021. The financial closing was delayed due to late submission of final audited project financial statements (APFS).12 The appraisal and actual project implementation schedules are presented in Appendix 9. A chronology of main events is in Appendix 10. F. Implementation Arrangements 24. Initially, DGHE of the Ministry of Education and Culture (MOEC) was designated executing agency. Following a cabinet restructuring in 2015, the project was transferred to the Directorate General for Learning and Student Affairs in MORTHE. Toward the end of 2019, following another round of restructuring, the PEDP was transferred back to DGHE in MOEC. A steering committee chaired by the deputy minister of the Ministry of National Development Planning, provided strategic guidance for implementing the project. The committee comprised key sector stakeholders, including the Ministry of National Development Planning, relevant employer

12 The delay in submitting the final APFS was due to changes in internal arrangements at the responsible audit unit of

the Supreme Audit Agency following a so-called “re-merging” of the DGHE (the executing agency) into the MOEC, as explained in a Ministry of Finance letter dated 22 December 2020.

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associations, and the Ministry of Manpower and Transmigration. The PMU established under DGHE and headed by a project manager was responsible for day-to-day implementation and reporting to the executing agency and ADB. The PMU consolidated procurement plans from PIUs within individual polytechnics and proposed the project’s annual budget to the ministry. It also provided guidance to the PIUs and supervised their bid processing, contract management, and implementation. The PMU managed the withdrawal applications and consolidated financial reports for auditing purposes. The project’s organization structure is shown in Appendix 11. 25. PIUs were responsible for implementing project activities in their respective polytechnics. Each comprised a manager and four coordinators to manage finance, procurement, staff and program development, and monitoring and evaluation. Each PIU worked with a unit for managing procurement activities under the polytechnic director. Technical specifications of the equipment to be procured were developed together with the user units or study programs, and the bidding process was conducted by the procurement units. All biddings were processed through an electronic system set up by the government. Having PIUs in 34 polytechnics was on one hand challenging from the project management, but on the other hand, it was one of the project’s achievements as target coverage was substantially expanded. G. Consultant Recruitment and Procurement 26. Consultants. At appraisal, the loan envisioned 3 person-months of international and 259 person-months of national consultants through firms and individual consultants, excluding unidentified person-months for six consulting packages included in the original procurement plan. At completion, the total was 1 person-month of international and 643 person-months of national consultants. The actual person-months for national consultants are higher than the appraisal estimates due to the project extension, underestimation of the number of person-months at appraisal, and additional positions required during project implementation. While the grant agreement did not indicate the planned person-months, there were 17 person-months of international and 136 person-months of national consultants at completion. The consulting firms were engaged to conduct independent monitoring and evaluation as well as specific studies financed under the loan and grant. The individual consultants supported project operations related to procurement, financial management, training management, and database management. At completion, the PMU had completed 36 packages of consultant recruitment, comprising 23 packages under the loan and 13 packages under the grant. 27. Goods and works. At appraisal, procurement packages under the loan were estimated to number at least 51, consisting of 13 for program development, 13 for equipment in preselected polytechnics, and 25 for equipment and works under the NSF. At completion, the project had procured 638 works and goods packages. The original minimum number of contracts represent packages for 13 preselected polytechnics but exclude equipment and works for NSF components. The PEDP adopted a demand-driven approach allowing each polytechnic to identify its needs during project implementation. Because the polytechnics varied in their priority sectors (agriculture, manufacturing, infrastructure, mining, and tourism), the types of equipment were also various and could not easily be consolidated into a smaller number of packages. ADB supported the PMU and PIUs within polytechnics through procurement training and clinics. Initially, during 2013–2014, only one procurement specialist was recruited to assist the bidding process. This was found to be inadequate and so two additional procurement consultants were recruited in 2015, which led to improved contract awards and disbursement. During the first 3 years, the project adopted a prior review mechanism. Following the 2015 midterm review mission, the project gradually adopted a post-review sampling mechanism. The use of electronic procurement and

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post-review sampling facilitated a faster and simpler process. Consultant recruitment and procurement packages are summarized in Appendix 12. 28. Procurement processes generally were found to be in order. The quality of goods and civil works and performance of suppliers and contractors were generally satisfactory, but about 7% of sample contracts were found to have weaknesses. A proactive integrity review conducted by the Office of Anticorruption and Integrity during 2016–2017 found that 22 contracts at the PMU and seven PIUs (valued at $4.1 million) out of about 300 contracts reviewed had issues related to fairness, transparency, accountability, and control in procurement and financial management.13 Procurement issues included (i) procurement decisions without adequately documented justification, (ii) incorrect application of bidding requirement during evaluation, (iii) narrow technical specifications, and (iv) missing audit clause in bidding documents and contracts. Findings in financial management involved (i) breaches of contract provisions on liquidated damages, (ii) penalties against suppliers not being deducted during advance fund liquidation, (iii) delayed imposition and collection of liquidated damages, and (iv) full payments to suppliers despite insufficient bank guarantee and deficient performance security. The Office of Anticorruption and Integrity’s follow-up review in 2019 found partial implementation of five recommendations from the 2017 proactive integrity review and noted three new findings related to length of performance securities and inconsistent treatment of liquidated damages settlement across PIUs. The follow-up review concluded that the project’s procurement and financial management had somewhat improved, but further improvements were needed in monitoring of liquidated damage payments and their settlement to the ADB project account prior to project financial closure. ADB’s Indonesia Resident Mission (IRM) and the PMU have taken measures to address the liquidated damage issues. H. Gender Equity 29. The project was categorized effective gender mainstreaming. Along with gender-related activities, the gender action plan (GAP) incorporated five gender-related performance -targeted DMF outputs. The GAP initially had 18 activities and 11 targets. Activities 3 and 4 were removed in 2017 as they were beyond the project domain.14 Of the remaining 16 activities, 15 were completed (94%), and 10 out of 11 targets (91%) were achieved. Of 27 activities and targets overall, 22 were fully completed and achieved (81%). GAP implementation was thus successful. From the gender point of view, as seen through data on enrolment of female students (Appendix 3) as well as their entry into the job market, the PEDP had an extremely positive impact in making TVET more equitable. Appendix 13 details the GAP implementation. I. Safeguards 30. The project had no major safeguard issues related to environment, resettlement, or indigenous people and was categorized as C. It introduced green tourism as a product of Bali polytechnic. That contributed to improving the local environment, especially in watershed management and carbon reduction. Under the grant, the project carried out a special study and capacity building on energy audit and savings through the ecological footprint campus management. The project had a positive influence on increasing environmental awareness among students and faculty.

13 Proactive integrity reviews were formerly known as project procurement-related reviews. 14 MOU review mission, 14 November–20 December 2017.

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J. Monitoring and Reporting 31. Loan covenants. All loan covenants have been complied with, and no covenants were modified, suspended, or waived during project implementation. Covenants were generally relevant and supported the project design, except that some were too prescriptive. There were issues relating to APFS: (i) while the APFS were submitted to ADB generally on time, the final APFS (FY2020) were overdue as a result of internal arrangements within the Supreme Audit Agency after merging of the executing agency from MORTHE to MOEC (footnote 12); (ii) there were no additional opinions in APFS for FY2015–2019; (iii) wording of the auditor’s opinion for APFS FY2018 did not comply with auditing standards acceptable to ADB. ADB and the Supreme Audit Agency agreed to update the terms of reference and the opinion wording to comply with ADB’s requirements for upcoming APFS (see para. 48). The status of compliance is shown in Appendix 14. 32. Monitoring and evaluation reports. The project regularly prepared periodic monitoring and reporting reports with support from consultants. These included detailed analysis at the polytechnic as well as project level. As the DMF had identified only limited indicators, monitoring and evaluation reports fleshed out some additional project-specific targets for tracking implementation progress. These reports served as the basis for preparation of the government’s internal documents, including its project completion reports and some publications.

III. EVALUATION OF PERFORMANCE A. Relevance 33. Overall, the project is assessed relevant. It sought to increase the number of TVET graduates and improve quality of education. This focus was consistent with Indonesia’s long-term perspective on human resource development and aligned with the country’s 5-year development plans. It was consistent with ADB’s country partnership strategy for Indonesia, which underscored the need to enhance the economy’s competitiveness and productivity through human capital development. The emphasis on productivity and rapid growth was also critical for a balanced development of geographies within the country. The project’s approach was aligned with ADB’s Strategy 202015 and subsequently with its Strategy 2030.16 The PEDP was aligned with ADB’s education sector operational strategy and the gender and development policy. In addition, the PEDP was in line with the new government priority on TVET-led human capital development. The project was relevant at appraisal and remains relevant throughout implementation. 34. The project focused on core outcomes while underscoring the greater role of demand for quality skills. It steered the preparation of polytechnic graduates toward meeting the labor market's skills and competency requirements. The core design was directed to achieving the project’s objectives in the six geographic regions and five priority industrial sectors. The project design, however, did not spell out specific details of the priority industrial sectors or the institutional profiles of the preselected polytechnics. These specifics were left to be addressed during implementation. The PEDP did, however, provide an NSF of $38.1 million (about 50% of loan funds) to be used flexibly during implementation. This shifted the burden to the PMU of achieving the PEDP’s objectives and working out granular implementation. The PMU, then, had to work out the details in consultation with ADB. As noted earlier (para. 13), the regulatory arrangements and

15 ADB. 2008. Strategy 2020: Working for an Asia and Pacific Free of Poverty. Manila. 16 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific.

Manila.

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procedures required for certain outputs did not exist in the country, and that impeded the pace of implementation. B. Effectiveness 35. The project is assessed effective, as it achieved or exceeded most of its outcome and output targets. The two outcome indicators focused on enrolment growth and entry of graduates into employment, with explicit shares of female students in both targets. The project exceeded benchmarks for the period 2012–2019. Namely, there was a 45% increase of enrollment in selected study programs from 17,701 in 2012-2013 to 25,718 in 2019 (target: 25%), and the proportion of female students was 34% (target: 30%). Likewise, during the same period, the number of polytechnic graduates entering the workforce in priority areas increased by 61.4% (target: 25%), with 32.9% of these being females (target: 15%). More importantly, enrollment in priority sectors at 34 polytechnics grew by 10.5% annually from 2012 to 2018. Notably, the share of female enrollment in the priority sectors expanded by an even faster 12.1%. This indicates the PEDP’s much larger contribution to the equitable and expanded access to polytechnic education in Indonesia and underscores that the intended outcome of the project exceeded its target by a wide margin (Appendix 3).17 However, it is important to note the weakness in formulating outcome indicators. The increase in the polytechnic enrollment and different categories of students were not clearly defined in the DMF. It was not recognized that priority industrial sectors employed graduates from a cluster of related disciplines. While there is a broad relationship between the field of study and occupations, employers tend to recruit graduates from a number of disciplines. Consequently, the aggregated DMF targets were not readily and meaningfully applicable to any discipline. Further, the DMF timelines, with a baseline of 2009 and target of 2016, did not match with the actual project cycle. Approved in 2012, PEDP was expected to be implemented up to June 2018. The DMF indicators based on a project preparatory technical assistance conducted in 2009–2010, reflected this lag and the timelines were not in consonance with the project’s implementation timeframe. The project’s internal documents, especially the monitoring and evaluation reports, noted such DMF discrepancies but this was not updated during the mid-term review mission. 36. Accounting for the largest amount of project expenditure, Output 1 exceeded planned achievements and enhanced opportunities for meeting demand for skills in the country. The PEDP upgraded the quality of 118 study programs in 34 polytechnics. Activities included curriculum review and revision in partnership with industries; upgrading faculty through training and education; providing equipment; establishing mechanisms for assessment, testing, and certification; and developing master’s degree programs. 37. Output 2 promoted an open and flexible vocational education system. The targets on forging links with SMKs and awarding scholarships to female students were exceeded. The CTS and RPL targets were only partially achieved, however, due to delayed implementation (para. 13). Many of the regulatory procedures facilitating recognition of RPL and CTS did not fully exist on the ground. It was a challenge for the ministry to complete these regulatory systems and put them in practice while simultaneously implementing the project. This required much effort and time, delaying progress until 2017. 38. Output 3 also exceeded its targets. The industry endorsements of revised curricula were more than four times the target. Most polytechnics assisted under the PEDP managed to build

17 The increase in enrollment under the project mostly relates to Diploma 3/Diploma 4 or higher levels. It does not

include increase in enrollment due to community colleges established in some cities by polytechnics.

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good rapport and cooperation with employers and industry associations, as seen through the number of MOUs (421 as compared to the target of 129). Partnerships with employers and industry associations achieved an even higher score, exceeding the target by 30 times. 39. Output 4, too, exceeded its targets. During implementation, the project encountered challenges, including a lack of detailed guidelines for selecting polytechnics to receive project funding, limited experience of project staff, a need for most project staff to perform teaching assignments while managing project activities, and changes in the executing agency’s organization during the project. Despite these challenges, the PMU responded with due diligence and innovative solutions, thereby contributing to institution building for both the oversight agencies and polytechnics (para. 17). The number of government staff trained exceeded the target, as did the number of proposals supported under NSF (27). The design for implementing the NSF and establishing COTs in polytechnics are particularly noteworthy. C. Efficiency 40. The project is assessed efficient. Its investments were made efficiently. These resulted in high utilization of the loan, the grant from the Government of Canada, and domestic resources. Total spending under the project remained within the stipulated resource envelope, and most of the project outcomes and outputs exceeded their targets. The project was extended once. The unspent financial resources under the loan and grant were refunded upon project closing. There were no fiduciary or governance issues. 41. The improved TVET system is expected to hasten the absorption of complementary technology skills and increase labor productivity, thereby resulting in gains for employers, employees, and the wider economy.18 At appraisal, it was envisioned that the main benefit would be additional earnings of Rp2 million per month for every skilled polytechnic graduate in formal employment. The economic internal rate of return (EIRR) was estimated at 17.2% at appraisal. The economic analysis undertaken in this report includes economic benefits resulting from the formal employment of polytechnic graduates from 2016 to 2035. As such, it does not include benefits accruing to the self-employed, those employed informally, or other graduates. It thus may underestimate project benefits. The EIRR was estimated at 8.79%, which is above the 6% hurdle rate currently applied to social sector projects but below the 12% rate in use at the time of appraisal. It is also considerably lower than estimated at appraisal. The economic analysis is discussed in greater detail in Appendix 15. In terms of process efficiency, the project was implemented well. However, two features could be highlighted to further improve project performance in similar conditions. The first relates to the timeliness of releasing government funds through Indonesia’s budgetary procedures. In its initial years, the project faced difficulties in this regard, although the PMU managed to get over the disruptions with no long-term damage. Second, collaboration between the PIU and the procurement units in the project polytechnics could have been strengthened to improve timeliness of bid document preparation, proposal evaluation, and contract award processing. D. Sustainability

42. The project is assessed likely sustainable. Demand for vocational training is strong because of (i) private sector-led pursuit of an Industry 4.0 agenda, and (ii) enhanced emphasis on continued skills upgrading across the educational and job settings. Meanwhile, there is a

18 Daron Acemoglu. 1998. Why Do New Technologies Complement High Skills? Directed Technical Change and Wage

Inequality. Quarterly Journal of Economics. 113(4). pp. 1055–1089.

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significant unmet demand for admission places in polytechnics, as many polytechnics are constrained by their physical facilities. 43. Polytechnics receive funding from the government to cover teacher salaries, development expenditure, and recurrent costs. The government is by constitution required to allocate 20% of the total annual budgetary expenditure to the education sector, including polytechnics. The polytechnics also receive revenues from students’ tuition and fees, and from private sector contribution. As such, the resource envelope for recurrent costs on operation and maintenance of equipment and infrastructure provided by the project is not a major concern. However, this report could not present a meaningful analysis on financial sustainability at polytechnic level due to the lack of institutional-level information across different disciplines, regions, and across public and private institution. Therefore, the financial analysis in the linked appendix describe only high-level educational expenditures data.

44. The project’s success story in establishing 421 MOUs among polytechnics with industries has been replicated and enhanced by the government under the implementation of Independent Campus policy (Kampus Merdeka). In addition, the 63 partnerships between polytechnics and SMKs will be strengthened by the establishment of a new directorate general in charge of vocational education who oversees SMKs and tertiary vocational education including polytechnics. E. Development Impact 45. Although it is too early to gauge the project’s full development impact, the preliminary assessment is satisfactory, based on social, institutional, and environmental factors. Expansion of the polytechnic system, and especially its emphasis on making the system open and equitable, has had a socially positive signaling effect for students and business partners. It was particularly beneficial for female students. During the project life the polytechnic system has grown from 172 public and private institutions at appraisal to more than 300 polytechnics at project completion. The choice of 13 preselected polytechnics in different geographies of the country distributed the outreach of government support across the regions. It also recognized the need for supporting different sectors of the economy to reflect each region’s natural advantages. In terms of institutional strengthening, it bolstered polytechnics’ capability to better manage their resources and work closely with their local industrial and business partners. Some polytechnics focused on better utilization of natural resources and undertook environmentally sound practice of potable water management for their communities, reducing carbon footprint, and promoting green tourism. F. Performance of the Borrower and the Executing Agency

46. Implementation of the project was well-supported by the borrower and executing agency. MOEC and subsequently MORTHE supervised the implementation well through the PMU and 34 PIUs in polytechnics. In addition to supervising implementation and preparing the periodic progress reports and documentation, the PMU addressed two substantive challenges concerning project design. The first related to developing a mechanism for implementing the NSF by setting up a competitive system for allocating funds across applicant polytechnics (para. 19). The second sought to fill the void in relation to CTS and RPL procedures (para. 14). The first of these was accomplished well and in a timely manner. The second was also delivered, albeit only in part and with some slippages. Although the executing agency was reorganized twice, the project manager and key team members remained the same throughout project implementation (except that the project manager died in 2018 and was succeeded by his deputy). Because the PMU was relatively

13

independent in its day-to-day operation, even if the reporting unit changed this did not severely affect the decision-making process at project level. However, it was considerably affected during early years due to the late budget approval. Overall, the PMU was successful in completing the implementation. The borrower’s performance is assessed satisfactory. In view of its contribution to (i) designing NSF implementation, and (ii) establishing procedures for streamlining RPL, the executing agency’s performance is also assessed satisfactory. G. Performance of Cofinancier 47. The grant from the Government of Canada contributed to the overall project achievements. The enhanced resources increased the scope and depth of project activities. Linking with project objectives, the grant supported polytechnics through leadership training, laboratory management training, curriculum review in partnership with industries, and enhancing effective gender mainstreaming and GAP implementation. This strengthened the project’s equity and inclusive character. The study visits to Canada exposed participants to good practices in TVET. The grant also introduced new knowledge and skills on Industry 4.0 technologies. In short, the grants strengthened the project design and helped it to achieve its objectives. Through its Embassy in Jakarta, the Government of Canada took part in ADB’s semiannual review missions. It was responsive to requests for reallocation of grant proceeds, extension of the grant implementation period, and assistance to connect with Canadian partners for capacity building activities. The grant implementation details are presented in Appendix 16. The cofinancier’s performance is assessed satisfactory. H. Performance of the Asian Development Bank

48. Project processing was initially undertaken by ADB headquarters and was completed by IRM, which then also supervised project implementation. A strong point of project supervision was the continuity of IRM personnel from the project’s preparation through its implementation. This built valuable institutional memory, ensured that the project stayed the course, and generated internal efficiencies in implementation. The IRM periodically released progress reports on the project and coauthored a number of publications, including in relation to PEDP success stories, COTs, the journey of gender mainstreaming in polytechnics, the book “Aim Higher, Achieve More,” and a video profile. ADB also managed and administered the grant assistance. The IRM reviewed APFS submitted by the auditor and advised the executing agency to take measures to improve the financial management, and it discussed any issues encountered during the review mission. In view of the IRM’s overall processing and continued support and consistent guidance to the PMU in resolving bottlenecks, ADB’s performance is assessed satisfactory. I. Overall Assessment

49. Overall, the project is rated successful. It contributed to improving the technical skills of polytechnic graduates with diplomas (D3 and D4) and applied master’s degree programs, and to enhancing polytechnics’ capacity to serve the larger student body and provide more equitable access to different geographies of the country. This was achieved through updated new curricula prepared in collaboration with business and industry partners, provision of better teaching materials and equipment, teacher and staff training, and improvements in teaching and learning practices. Further, it introduced new teaching methodology and contents aligned with Industry 4.0. Many PEDP innovations, such as in RPL, CTS, certification, internships, and COTs, contribute to the broader policy reforms in tertiary education launched in January 2020 under the name Independent Campus policy (Kampus Merdeka). This initiative provides greater flexibility and incentives for polytechnics to establish new study programs, obtain accreditation

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assessment, establish partnerships with industry, and apply for a higher level of autonomy status.19 Overall, the PEDP has prepared the TVET subsector to better meet the needs of industrial growth in Indonesia.

Overall Ratings Criteria Rating

Relevance Relevant Effectiveness Effective Efficiency Efficient Sustainability Likely sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of ADB Satisfactory

ADB = Asian Development Bank. Source: ADB.

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons 50. Issues. Several issues were identified in relation to design and implementation that eventually affected the achievements of project outputs. First, the regulations and guidelines for implementation of qualification framework, such as for RPL and CTS, were not yet completed at project design, and the corresponding output indicators were not set up based on demand analysis. Second, the capacity of polytechnics varied significantly such that 14 out of 34 institutions were unable to achieve 70% disbursement of the allocated budget even by the end of year 4 after loan effectiveness. Third, polytechnics located in the eastern islands faced difficulty in finding industry partners. Finally, the large number of polytechnics (34) as implementing agencies made project management and supervision more complicated. 51. Lessons. Polytechnics that were selected to receive project funding through a competitive mechanism under the NSF scheme tended to be more responsive as compared to those preselected during project preparation. It is important to assess the institutional capacity and commitment of public and private polytechnics to ensure efficiency and viability of public investments. To achieve higher efficiency and more significant impact at institutional level, the project design should consider an optimum number of beneficiary institutions and amount of funds for each individual institution. It is important to strengthen project readiness and establish a comprehensive monitoring system. Understanding the government budget cycle, as well as the budget allocation and revision process, and then mitigating all critical points across key stakeholders is needed for smooth implementation. 52. Future investments in the TVET subsector should include strengthening the network among polytechnics working in the same or adjacent subjects or disciplines, whether public or private, to ensure a coherent set of curricula as well as testing and certification processes. Moreover, private polytechnics should get greater attention, and especially access to public funds for student scholarships and faculty development programs. Key elements to establishing a demand-driven approach for TVETs include to identify those competencies needed and then to

19 Government regulation categorizes public higher education institutions into three levels in relation to their autonomy

in managing resources: Satker is least independent while PTNBH (Perguruan Tinggi-Badan Hukum) is the most independent. Between these two is BLU (Badan Layanan Umum).

15

adopt work-based learning through internships, skills and/or competency testing, and certification. Alumni associations could help in strengthening polytechnic institutions and the business sectors. 53. The project’s decentralized and demand-driven design provided more flexibility for the beneficiary institutions to procure equipment suited to their specific needs, readiness and priorities, and annual budget allocations. Nevertheless, the large number of procurement packages across many institutions created significant administrative burden on the PMU and PIUs, making capacity building difficult and opening opportunity for potential integrity violations. 54. Innovative approach. Under the NSF scheme, the project devised a competitive mechanism for selection of both public and private polytechnics to receive funding and which encouraged the participation of local industry and business partners. A beginning in forging these beneficial linkages with industry and business partners was enabled under the project by establishing centers of technology. There is much potential in this approach, and it can be gainfully scaled up within the country through a larger, multisourced skills development fund. B. Recommendations 55. The pace of changes in the TVET subsector has quickened lately due to the growing role of information and communication technology in the Indonesian economy. The policymaking institutions have responded positively to that change by initiatives such as Kampus Merdeka, which aims to strengthen partnership with industry. There is a need for high-level coordination and identification of broader medium-to-long-term reforms, including a new comprehensive TVET framework that builds on hard-earned gains and establishes coherence across the skills development system in both public and private sectors. 56. Future monitoring. Information developed under the PEDP should continue to be used and built upon for monitoring polytechnics’ progress. Likewise, information gathered for tracer studies should be consolidated and analyzed to derive appropriate implementation lessons. 57. Further action or follow-up. ADB will build upon lessons drawn from PEDP and undertake further analytical work to support the government in developing a new proposal for investments in Indonesia based upon the road map and investment plan for the TVET sector.

58. Timing of the project performance evaluation report. Preparation of a report may be considered in 2023 prior to preparation of Indonesia’s next 5-year development plan.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and Indicators with Baselines

Project Achievements

Impact Polytechnic produce graduates responsive to the needs and contribute toward increasing productivity in priority sectors

By 2020, the polytechnic sector delivers high-quality programs and services that improve the performance of five priority sectors of the Indonesian economy within the framework of the MP3EI

Likely achieved. Quality study programs Polytechnic graduates entering the workforce with relevant employment within 6 months of graduation; tourism sector achieved 95.8%, infrastructure 84.3%, energy and mining sector 76.6%, and agroindustry and agribusiness achieved 64%.

Outcome Polytechnic education is aligned to the MP3EI in 5 priority sectors

The number of polytechnic students enrolled in study programs in the five priority sectors increases by 25% to 45,575 in 2016 (2009: 36,460); at least 30% female (13,672 in 2016)

Achieved. Number of polytechnic students enrolled in study programs increased by 25% with at least 30% female students.

Total number of students increased from 17,701 (2012/13) to 25,718 in 2019, an increase of 45%

Female students in the same period increased from 5,191 to 8,778; 34% of the total

The number of polytechnic graduates entering the workforce increases by 25% (2009: 3,227; 2016: 13,600) in five priority sectors with at least 15% of them female (2016: 2,040)

Achieved. Number of polytechnic graduates entering the workforce increased by 25%, with at least 15% female graduates.

Total number of graduates increased: from 4,153 (2012/13) to 6,704 (2019), an increase of 61%.

Female students in the same period increased from 1,095 to 2,207 (33% of the total).

Outputs 1. Improved quality and relevance of polytechnic system

13 project polytechnics upgraded with facilities and equipment by 2015.

Achieved. Facilities and equipment upgraded in 34 polytechnics.

The lecturer development program is implemented, resulting in 39 lecturers trained to international standards and 200 lecturers trained to an agreed standard (20% of them female). A master’s degree program is established in five priority industries.

Achieved. 279 lecturers (target: 39) were provided scholarships for studies at master and doctoral level degrees. Of these, 88 (32%) were female (target: 20%). 208 lecturers (target: 200) were trained overseas, of which 52 (25%) were female trainees (target: 20%). Domestic training was provided to 2,019 participants, of which 569 (28%) were female (target: 20%). 247 training programs and 133 Internship conducted through partnership with industry to increase student body and graduate employment. Achieved. 12 applied science programs at master’s level established.

24,000 students (20% of them female) tested and certified to endorsed standards in 20 revised diploma programs by 2016, cognizant of adopted IQF and BNSP requirements

Achieved. Total students certified 25,019 (104%), of which 8,813 were female students (35%). The certification was done through:

Appendix 1 17

Design Summary Performance Targets and Indicators with Baselines

Project Achievements

31 certification body (LSPs), supported by 230 competency testing unit (TUKs) developed under the project.

2. Expanded and more equitable access to polytechnic institutions

At least 30 partnership agreements with 20 SMKs and 10 private providers enable direct credit for 12,000 students (30% of them female).

Partially Achieved. Partnerships with SMK signed 63 (210%). Students receiving CTS 2,261 (19%) Female students 507 (22%).

12,000 unemployed SMK students or others (20% of them female) are assessed and certified through RPL by 2016.

Partially achieved. 1,963 (16%) SMK students were certified, of which certified 468 were female SMK students (24%). Achieved. 8,274 (69%) students awarded D1 PVB from SMKs, of which 2,762 (33%) were female students.

2,000 NSF scholarships are awarded to poor students and females to complete revised study programs supported by the project (20% of recipients female).

Achieved. Total scholarship recipients 4,879 (244%), of which female recipients 1,874 (38%). 5,340 students and prospective employees participated in short-course programs.

3. Increased private sector involvement and promotion of entrepreneurial culture to strengthen polytechnic graduate competitiveness

Industry endorses 20 revised study programs that address identified needs by 2016.

Achieved. Overall, curriculum for 82 study programs revised and endorsed industry (410%) of the target.

13 formal partnerships established between 13 polytechnics and industry associations and employers to implement skills development services by 2014.

Achieved. Overall, 421 MOUs were signed among 34 polytechnics and partner industries (3238% of the target).

4. Strengthened governance and management of polytechnic education

150 DGHE and polytechnic management and staff members (20% female) trained in project management by Q4 2013.

Achieved. Staff trained 510 (340%), of which 148 female participants (29%).

Monitoring and reporting systems in 13 polytechnics revised and implemented by 2015.

Achieved. M&E system implemented in 34 polytechnics (261%).

At least 25 demand-led skills-development proposals appraised, funded, and implemented through the NSF by 2016.

Achieved. Overall, 27 proposals approved and financed under NSF.

BNSP= National Agency for Professional Certification; CTS = Credit transfer system, DGLSA = Director General of Learning and Students Affairs, DND = Domestic non-degree training, LSP = professional certification bodies, M&E = monitoring and evaluation, MP3EI = Master Plan for Acceleration and Expansion of Indonesia’s Economic Development (Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia), NSF = National Skills Fund, OND = overseas non-degree training, SMK = Secondary vocational schools (Sekolah menengah kejuruan), TUK = competency testing units. Sources: 1. Government PEDP Completion Report 2. Republic of Indonesia: PEDP – Final Report Grant 0343 – INO (EF) 3. Project Monitoring and Evaluation Report(s)

18 Appendix 2

LIST OF PROJECT POLYTECHNICS, AMOUNT OF LOAN FUNDING, AND POLYTECHNICS VISITED ONLINE DURING

PROJECT COMPLETION MISSION

No Name of Polytechnics Location Status Total amount of

project assistance ($)

Remarks: Date Visited Online

1 State Polytechnic of Lhokseumawe (PNL) Lhokseumawe, Nanggroe Aceh Darussalam

Public 632,857.70

2 State Polytechnic of Medan (POLMED) Medan, North Sumatra Public 124,822.14

3 State Polytechnic Batam (POLIBATAM) Batam, Riau Islands Public 5,726,229.44 08-Sep-20

4 Polytechnic of Caltex Riau (PCR) Pekanbaru, Riau Private 1,897,062.44 10-Sep-20

5 State Agriculture Polytechnic of Payakumbuh (Politani Payakumbuh)

Payakumbuh, West Sumatra Public 602,350.09

6 State Polytechnic of Padang (PNP) Padang, West Sumatra Public 1,277,202.03

7 State Manufacture Polytechnic of Bangka Belitung (POLMAN BABEL)

Pangkal Pinang, Bangka Belitung Island

Public 825,392.33

8 State Polytechnic of Lampung (POLINELA) Bandar Lampung, Lampung Public 4,944,357.79

9 State Polytechnic of Jakarta (PNJ) DKI Jakarta Public 2,476,621.47 15-Sep-20

10 State Polytechnic of Bandung (POLBAN) Bandung, West Java Public 3,691,408.80 15-Sep-20

11 State Manufacture Polytechnic of Bandung (POLMAN)

Bandung, West Java Public 2,445,031.88

12 Polytechnic of Post Indonesia (POLTEKPOS) Bandung, West Java Private 855,338.83

13 State Polytechnic of Indramayu (POLINDRA) Bandung, West Java Public 1,656,413.51

14 State Polytechnic of Cilacap (PNC) Cilacap, Central Java Public 909,012.73

15 State Polytechnic of Semarang (POLINES) Semarang, Central Java Public 1,430,788.53

16 Polytechnic of LPP Yogyakarta Yogyakarta, DI Yogyakarta Private 1,225,993.81 26-Aug-20

17 Mechatronics Polytechnic of Sanata Dharma (PMSD)

Yogyakarta, DI Yogyakarta Private 1,168,502.92

18 Polytechnic of ATMI Surakarta (ATMI) Solo, Central Java Private 2,216,479.87 08-Sep-20

19 State Electronics Polytechnic of Surabaya (PENS)

Surabaya, East Java Public 2,247,221.21

20 State Polytechnic of Shipbuilding Surabaya (PPNS)

Surabaya, East Java Public 3,087,630.97

Appendix 2 19

No Name of Polytechnics Location Status Total amount of

project assistance ($)

Remarks: Date Visited Online

21 State Polytechnic of Malang (POLINEMA) Malang, East Java Public 1,548,444.97

22 State Polytechnic of Jember (POLIJE) Jember, East Java Public 3,494,909.99 26-Aug-20

23 State Polytechnic of Banyuwangi (POLIWANGI)

Jember, East Java Public 1,685,898.60

24 State Polytechnic of Bali (PNB) Denpasar, Bali Public 833,620.48 26-Aug-20

25 State Polytechnic of Pontianak (POLNEP) Pontianak, West Kalimantan Public 3,727,141.63 02-Sep-20

26 State Polytechnic of Banjarmasin (POLIBAN) West Kalimantan Public 854,520.98

27 State Polytechnic of Samarinda (POLNES) Samarinda, East Kalimantan Public 2,652,305.33 02-Sep-20

28 State Agriculture Polytechnic of Samarinda (Politani Samarinda)

Samarinda, East Kalimantan Public 544,677.98

29 State Agricultural Polytechnic of Pangkep (Politani Pangkep)

Pangkep, South Sulawesi Public 2,106,522.03

30 Public Polytechnic of Ujung Pandang (PNUP) Makassar, South Sulawesi Public 1,665,171.30 04-Sep-20

31 State Polytechnic of Manado (POLIMDO) Manado, North Sulawesi Public 1,351,942.57 09-Sep-20

32 State Agriculture Polytechnic of Kupang (Politani Kupang)

Kupang, East Nusa Tenggara Public 1,781,581.98 28-Aug-20

33 State Polytechnic of Ambon (POLNAM) Ambon, Maluku Public 1,388,340.41

34 Polytechnic of Perdamaian Halmahera (PADAMARA)

Halmahera, North Maluku Private 690,274.26

TOTAL 63,766,070.99

Note: In addition to expenditure per polytechnic, there were expenditures managed by PMU amounting to $4,862,463 to cover consulting services, scholarships for polytechnics' students, capacity building and skills assessor’s certification for polytechnic's lecturers. Source: Asian Development Bank, Project Management Unit.

20 Appendix 3

LIST OF POLYTECHNICS, STUDY PROGRAMS, STUDENT ENROLLMENT, AND PARTNER INDUSTRIES

Table A3.1. Focus Area and Study Programs Receiving Project Assistance

No Polytechnics Industry Sector/ Focus Area Scheme Study Program Funding/Selection

1 State Polytechnic of Lhokseumawe (PNL)

Agriculture/ Waste Treatment of Palm Oil Industry

B1 D3-Chemical Eng. NSF Batch 1

D3-Civil Eng. NSF Batch 1

2 State Polytechnic of Medan (POLMED)

Agroindustry A D3-Mechanical Eng. NSF Batch 2

D3-Energy Conversion Eng. NSF Batch 2

3 State Polytechnic Batam (POLIBATAM)

Manufacturing/ Telematics A

D3-Electronics Eng. NSF Batch 3

D3-Animation, Multimedia and Networking

Advanced Assignment

D3-Aircraft Maintenance Advanced Assignment

4 Polytechnic of Caltex Riau (PCR) Manufacturing/ Industrial Automation to Support Oil and Gas Industry

B2

D3-Electronics Eng. NSF Batch 1, Strengthening

D3-Mechatronics Eng. NSF Batch 1, Strengthening

D4-Informatics Eng. Advanced Assignment

D4-System Informatics Eng. Advanced Assignment

D3-Computer Eng. Advanced Assignment

D4-Electrical Eng. NSF Batch 1

5 State Agriculture Polytechnic of Payakumbuh (Politani Payakumbuh)

Agro-industry/ Palm Oil Processing

B3

D3-Food Technology Assignment

D3-Agriculture Water System Assignment

D3-Agriculture Machinery & Equipment

Assignment

D4-Plantation Cultivation Assignment

D4-Plantation Management Assignment

6 State Polytechnic of Padang (PNP) Mining/Supporting Technology for Coal Mining

B3

D3-Mechanical Eng. Assignment

D3-Heavy Equipment Eng. Assignment

D3-Civil Eng. Assignment

D3-Electrical Eng. Assignment

7 State Manufacture Polytechnic of Bangka Belitung (POLMAN BABEL)

Manufacturing/ Shipbuilding A D3-Electronics Eng. NSF Batch 3

D3-Mechanical M&R Eng. NSF Batch 3

Appendix 3 21

No Polytechnics Industry Sector/ Focus Area Scheme Study Program Funding/Selection

8 State Polytechnic Lampung (POLINELA)

Agroindustry/ Processing of Rubber and Derivative Products

B3

D3-Agricuture Mechanization Assignment, Strengthening

D3-Land & Environment Resources Eng.

Assignment, Strengthening

D4-Production & Industrial Management Plantation

Assignment, Strengthening

D4-Food Technology NSF Batch 1, Strengthening

D4-Aquaculture NSF Batch 1, Strengthening

9 State Polytechnic Jakarta (PNJ)

Infrastructure/ Design and Engineering of Roads and Bridges

B3 D4-Design Road & Bridge NSF Batch 1, Strengthening

D3-Civil Constructions Eng. NSF Batch 1, Strengthening

Manufacturing/ Industrial Automation for Water Treatment

B2

D3-Telecommunication Eng. NSF Batch 2, Strengthening

D3-Industrial Electronics Eng. NSF Batch 2, Strengthening

D3-Informatics Eng. NSF Batch 2, Strengthening

10 State Polytechnic Bandung (POLBAN)

Infrastructure: Design and Engineering of Roads and Bridges

B3

D3-Civil Construction Eng. Assignment, Strengthening

D4-Civil Building M&R Assignment, Strengthening

D3-Chemical Eng. NSF Batch 3, Strengthening

D3-Aeronautics Eng. Advanced Assignment, Strengthening

11 Polytechnic Manufacturing Bandung (POLMAN)

Manufacturing/ Design and Engineering of Transport Equipment/ Vehicle

B3

D3-Precision Tools Making Eng. Assignment, Strengthening

D3-Machines Maintenance Eng. Assignment, Strengthening

D3-General Mechanics Eng. Assignment, Strengthening

D3-Precision Tools Design Assignment, Strengthening

D3-Design General Mechanics Assignment, Strengthening

D3-Foundry Eng. Assignment, Strengthening

D3-Mechatronics Assignment, Strengthening

D3-Mechanical and Manufacturing Eng.

Assignment, Strengthening

D3-Design Manufacture Eng. Assignment, Strengthening

D3-Automation Technology Eng. Assignment, Strengthening

12 Polytechnic of Post Indonesia (POLTEKPOS)

Logistics B2 D3-Management Informatics NSF Batch 2, Strengthening

D3-Bisnis Logistics NSF Batch 2, Strengthening

13 A D3-Mechanical Eng. NSF Batch 1, Strengthening

22 Appendix 3

No Polytechnics Industry Sector/ Focus Area Scheme Study Program Funding/Selection

State Polytechnic Indramayu (POLINDRA)

Manufacturing/ Transport Equipment

D3-Informatics Eng. NSF Batch 1, Strengthening

D4-Design Manufacture NSF Batch 1, Strengthening

D4-Software Eng. NSF Batch 1, Strengthening

14 State Polytechnic of Cilacap (PNC) Infrastructure A

D3-Electronics Eng. NSF Batch 2, Strengthening

D3-Mechanical Eng. NSF Batch 2, Strengthening

D2-Agriculture Machinery NSF Batch 2, Strengthening

D2-Fishery Machinery NSF Batch 2, Strengthening

D4-Environment Eng. NSF Batch 2, Strengthening

D4-Electrical Eng. NSF Batch 2, Strengthening

15 State Polytechnic of Semarang (POLINES)

Banking and Accounting B1 D3-Computer Accountancy NSF Batch 2, Strengthening

D3-Syariah Banking NSF Batch 2, Strengthening

16 Polytechnic of LPP Yogyakarta (Poli LPP)

Agriculture/ Sugar Technology A D3-Chemical Eng. NSF Batch 1, Strengthening

D3-Mechanical Eng. NSF Batch 1, Strengthening

17 Mechatronics Polytechnic of Sanata Dharma (PMSD)

Manufacturing/ Food and Beverage

A D3-Mechatronics Eng. NSF Batch 1, Strengthening

18 Polytechnic of ATMI Surakarta (ATMI)

Manufacturing/ Plastic Industry B2

D3-Industrial Machinery NSF Batch 1, Strengthening, Advanced Assignment

D3-Mechanical & Machinery Design

NSF Batch 1, Strengthening, Advanced Assignment

D4-Manufacture Eng. Technology NSF Batch 1, Strengthening, Advanced Assignment

D4-Design Manufacture Eng. NSF Batch 1, Strengthening, Advanced Assignment

19 State Electronics Polytechnic of Surabaya (PENS)

Manufacturing/ Electronic-based Creative industry

B2

D4-Electronics Eng. NSF Batch 2, Strengthening, Advanced Assignment

D4-Informatics Eng. NSF Batch 2, Strengthening, Advanced Assignment

20 State Polytechnic of Shipbuilding Surabaya (PPNS)

Manufacturing/ Shipbuilding Technology

B3 D4-Welding Eng. NSF Batch 2, Strengthening, Advanced Assignment

Appendix 3 23

No Polytechnics Industry Sector/ Focus Area Scheme Study Program Funding/Selection

D3-Ship Design and Construction Eng.

NSF Batch 2, Strengthening, Advanced Assignment

21 State Polytechnic of Malang (POLINEMA)

Agriculture/Food and Beverage Production

B1 D3-Chemical Eng. NSF Batch 1, Strengthening

D4-Electronics Eng. NSF Batch 1, Strengthening

22 State Polytechnic of Jember (POLIJE)

Agriculture/Food and Beverage Production

B2

D3-Management Agribusiness Assignment

D3-Agriculture Eng. Assignment

D3-Holticulture Production NSF Batch 1

Food Technology and Packaging

B3 D3-Food Technology Assignment

D3-Computer Eng. NSF Batch 1

23 Public Polytechnic of Banyuwangi (POLIWANGI)

Shipbuilding Support Technology

A D3-Informatics Eng. NSF Batch 1, Strengthening

D3-Mechanical Eng. NSF Batch 1, Strengthening

24 State Polytechnic of Bali (PNB) Tourism (Meeting, Incentive, Convention, and Exhibition; and Green Tourism)

B3

D3-Business Tourism Assignment

D3-Hospitality Assignment

D4-Business Tourism Management Assignment

25 State Polytechnic of Pontianak (POLNEP)

Fisheries Technology (breeding for indigenous fish)

B3 D3-Aquaculture Assignment, Strengthening

Agroindustry A D3-Plantation Product Processing Technology

NSF Batch 2, Strengthening

26 State Polytechnic of Banjarmasin (POLIBAN)

Coal Mining A D3-Heavy Equipment Eng. NSF Batch 3

D4-Mining Eng. NSF Batch 3

27 State Polytechnic of Samarinda (POLNES)

Mining/ Supporting Technology for Open Coal Mining and Processing

B3

D4-Industry Chemical Eng. Assignment, Strengthening

D3-Petro Oleo-chemistry Assignment, Strengthening

D3-Machines Maintenance Eng. Assignment, Strengthening

D3-Heavy Equipment Eng. Assignment, Strengthening

D3-Civil Eng. Assignment, Strengthening

D4-Road and Bridge Eng. Assignment, Strengthening

D3-Electrical Eng. Assignment, Strengthening

D3-Nautica Eng. Advanced Assignment

D3-Technica Eng. Advanced Assignment

24 Appendix 3

No Polytechnics Industry Sector/ Focus Area Scheme Study Program Funding/Selection

28 State Agriculture Polytechnic of Samarinda (Politani Samarinda)

Agriculture/ Palm Oil Industry A D3-Plantation Product Processing Technology

NSF Batch 3

29 State Agriculture Polytechnic of Pangkep (Politani Pangkep)

Agriculture/ Fisheries and Plantation

A

D3-Fishery NSF Batch 1, Strengthening

D3-Plantation Cultivation NSF Batch 1, Strengthening

D4-Fishery NSF Batch 1, Strengthening

30 State Polytechnic of Ujung Pandang (PNUP)

Mining/ Supporting Technology for Nickel Mining & industry

B3

D3-Mechanical Eng. Assignment

D3-Electrical Eng. Assignment

D3-Chemical Eng. Assignment

D3-Civil Eng. Assignment

31 State Polytechnic of Manado (POLIMDO)

Manufacturing Technology of Coconut Tree

B3

D3-Civil Eng. Assignment

D3-Mechanical Eng. Assignment

D4-building Construction Assignment

32 State Agriculture Polytechnic of Kupang (Politani Kupang)

Agriculture/ Feed production Technology for Animal Husbandry

B3

D3-Livestock Production Assignment

D4-Animal Feed Technology Assignment

D3-Livestock Health Assignment

Agro-sylviculture A D3-Forest Resource Management NSF Batch 2

33 State Polytechnic of Ambon (POLNAM)

Manufacturing/ Design for Agricultural Machinery/ Mechanization

B3 D3-Mechanical Eng. Assignment, Strengthening

34 Polytechnic of Perdamaian Halmahera (PADAMARA)

Agriculture/ Fisheries and Agriculture

A

D3-Agroforestry/Forest Cultivation NSF Batch 2

D3-Business Management NSF Batch 2

D4- Management of Coastal Fisheries

NSF Batch 2

D4-Production of Horticulture NSF Batch 2

Notes:

Study programs: D3 – Diploma 3 years; D4 – Diploma 4 years Scheme A: to cover programs/activities for improvement of: (i) quality & relevance, (ii) access & equity; (iii) partnership; (iii) partnership with industry; and (iv) governance

Scheme B1: Scheme A plus development of master's degree in applied science/technology

Scheme B2: Scheme A plus development of center of technology (COT)

Scheme B3: Scheme A plus B1 and B2

Appendix 3 25

Table A3.2. Students’ Enrollment in 34 Polytechnics Included in the Polytechnic Education Development Project (2012–2019)

Year Male Female Total 2012 43.373 27,038 70,411 2013 49,630 32,652 82,282 2014 52,952 38,259 91,211 2015 56,259 43,222 99,481 2016 60,316 48,230 108,546 2017 64,215 52,364 116,579 2018 68,806 55,607 124,413 2019 70,699 57,933 128,632

Source: PDPT - Higher Education Database.

Figure A3.1 Enrollment in 34 Polytechnics Supported Under the Project

Source: PDPT - Higher Education Database.

26 Appendix 3

Table A3.3. Students’ Enrollment in All Polytechnics (2012–2019)

Year Male Female Total 2012 101,534 113,898 215,432 2013 115,816 130,889 246,705 2014 118,522 140,613 259,135 2015 126,381 155,144 281,525 2016 134,762 172,428 307,190 2017 148,548 195,342 343,890 2018 171,461 218,641 390,102 2019 166,056 214,780 380,836

Source: PDPT - Higher Education Database

Figure A3.3. Enrollment in All Polytechnics Across the Country

Source: PDPT - Higher Education Database.

Appendix 3 27

Table A3.4. List of Industry Partners Met During Project Completion Review Mission

Source: ADB (Project Management Unit).

No Name Company Name Industry 1 Asmuni Mitra Tani, PT Agroindustry 2 Happy Garuda Food, PT Agroindustry 3 Firman Dheka Wijaya Sari Roti, PT Agroindustry 4 Wardi Samad PTPN 14 (Plantation) Agroindustry 5 Iqbal Sukses Mantap Sejahtera, PT Agroindustry 6 Kristian Amadeus Rejo Manis Indo, PT Agroindustry 7 Shirley Wailandu Waris, UD Agroindustry 8 Dewa Putra Yadnya St. Regis Hotel Tourism 9 Bakrie Maraya Marannu Maindan, PT Manufacturing 10 Purwadi Sagatrade, PT Infrastructure/Consultant 11 Astried S. R. Karunia Indah Segar, PT Agroindustry 12 Wahyo ATMI IGI, PT Manufacturing 13 Nana Supriyatna Batam Aero Teknik, PT Manufacturing/aircraft maintenance 14 Bella Yolanda Kinema Systrans Multimedia, PT Multimedia Marketing 15 Intan kamalia Purba TDK Electronics Indonesia Manufacturing/semiconductor 16 Wanda Abubakar Infinion Technologies Ind., PT Manufacturing 17 Ricky Ricardo Schlumberger Mining 18 Hasni Agustiyawati Amber Hasya, PT Infrastructure/construction

28 Appendix 4

PROJECT COST AT APPRAISAL AND ACTUAL

Table A4: Project Cost at Appraisal and Actual ($ million)

Appraisal Estimate Actual

Item L2928-INOa

G0343-INO b Total Cost

L2928- INO

G0343- INO Total Cost

A. Investment Costs 1. Equipment 27.25 0.00 27.25 15.99 0.00 15.99 2. Capacity Development 6.50 1.00 7.50 1.01 0.85 1.86 3. Consulting Services 2.20 1.15 3.35 1.74 1.17 2.91 4. Program and Teaching Learning Material Development

1.90 0.50 2.40 1.65 0.00 1.65

5. Studies and Workshops 1.40 1.00 2.40 0.71 0.91 1.62 6. National Skills Fundc 38.10 0.00 38.10 48.34 0.00 48.34 7. Social Marketing and Advocacy 0.55 1.00 1.55 0.20 1.18 1.38 8. Project Management 5.70 0.00 5.70 4.92 0.00 4.92 9.Taxes and Duties 0.90 0.00 0.90 0.00 0.00 0.00 Subtotal (A) 84.50 4.65 89.15 74.56 4.12 78.68 B. Contingencies 3.60 0.00 3.60 0.00 0.00 0.00 C. Interest and Commitment Chargesd 3.60 0.00 3.60 5.77 0.00 5.77 D. Miscellaneouse 0.00 0.30 0.30 0.00 0.72 0.72 Total (A+B+C+D) 91.70 4.95 96.65 80.33 4.84 85.17

INO = Indonesia. a Based on original loan amount by the government and ADB loan proceeds. Of the total loan amount, the Asian Development Bank (ADB) will finance an estimated $75.0 million.

b Based on original allocation of grant proceeds in 2014. c The civil works contracts are under National Skills Fund (NSF) Category. d Includes interest and commitment charges financed from the Government fund source. e Includes fees to administer the Canadian International Development Agency contribution by ADB, audit costs, bank charges, and a provision for foreign exchange fluctuations.

Source: ADB (Project Management Unit).

Appendix 5 29

PROJECT COST BY FINANCIER

Table A5.1: Project Cost at Appraisal by Financier

ADB

Government CIDA

Total Cost

Item Amount % of Cost Category Amount

% of Cost Category Amount

% of Cost Category Amounta

A. Investment Costs

1. Equipment 27.25 100.00 0.00 0.00 0.00 0.00 27.25 2. Capacity Development 0.00 0.00 6.50 86.67 1.00 13.33 7.50 3. Consulting services 2.20 65.67 0.00 0.00 1.15 34.33 3.35 4. Program and Teaching Learning Material Development

1.90 79.17 0.00 0.00 0.50 20.83 2.40

5. Studies and Workshops 1.40 58.33 0.00 0.00 1.00 41.67 2.40

6. National Skills Fundb 38.10 100.00 0.00 0.00 0.00 0.00 38.10 7. Social Marketing and Advocacy 0.55 35.48 0.00 0.00 1.00 64.52 1.55 8. Project Management 0.00 0.00 5.70 100.00 0.00 0.00 5.70 9. Taxes and Duties 0.00 0.00 0.90 100.00 0.00 0.00 0.90

Subtotal (A) 71.40 80.09 13.10 14.69 4.65 5.22 89.15 B. Recurrent Costs

C. Contingencies 3.60 100.00 0.00 0.00 0.00 0.00 3.60 D. Financial Charges During

Implementation 0.00 0.00 3.60 92.31 0.30 0.00 3.90

Total Project Cost (A+B+C+D)

75.00 77.60 16.70 17.28 4.95 5.12 96.65

% Total Project Cost

77.60

17.28 5.12 100

ADB = Asian Development Bank, CIDA = Canadian International Development Agency. Notes: a Numbers may not sum precisely because of rounding. b The civil works contracts are under National Skills Fund (NSF) Category. Source: ADB.

30 Appendix 5

Table A5.2: Project Cost at Completion by Financier

ADB

Government CIDA

Total Cost

Amount % of Cost Category Amount

% of Cost Category Amount

% of Cost Category Amounta

Item A. Investment Costs

1. Equipment 15.99 15.99 0.00 0.00 0.00 0.00 15.99 2. Capacity Development 0.00 0.00 1.01 54.30 0.85 45.70 1.86 3. Consulting services 1.74 59.79 0.00 0.00 1.17 40.21 2.91 4. Program and Teaching Learning Material Development

1.65 100.00 0.00 0.00 0.00 0.00 1.65

5. Studies and Workshops 0.71 43.83 0.00 0.00 0.91 56.17 1.62 6. National Skills Fundb 48.34 100.00 0.00 0.00 0.00 0.00 48.34 7. Social Marketing and Advocacy 0.20 14.49 0.00 0.00 1.18 85.51 1.38 8. Project Management 0.00 0.00 4.92 100.00 0.00 0.00 4.92 9. Taxes and Duties 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (A) 68.63 87.24 5.93 7.53 4.11 5.22 78.67 B. Recurrent Costs

C. Contingencies 0.00 0.00 0.00 0.00 0.00 0.00 0.00 D. Financial Charges During

Implementation 0.00 0.00 5.77 88.91 0.72 0.00 6.49

Total Project Cost (A+B+C+D)

68.63 80.59 11.70 13.74 4.83 5.67 85.16

% Total Project Cost

80.59

13.74 5.67 100 ADB = Asian Development Bank, CIDA = Canadian International Development Agency. Notes: a Numbers may not sum precisely because of rounding. b The civil works contracts are under National Skills Fund (NSF) Category. Source: ADB (Project Management Unit).

Appendix 6 31

DISBURSEMENT OF ADB LOAN AND GRANT PROCEEDS

Table A6.1: Annual and Cumulative Disbursement of ADB Loan Proceeds

($ million) Annual Disbursement Cumulative Disbursement

Year Amount ($ million) % of Total

Amount ($ million) % of Total

2013 5.00 7.3% 5.00 7.3% 2014 1.51 2.2% 6.51 9.5% 2015 9.64 14.0% 16.15 23.5% 2016 16.83 24.5% 32.97 48.0% 2017 9.25 13.5% 42.22 61.5% 2018 17.37 25.3% 59.59 86.8% 2019 12.57 18.3% 72.16 105.1% 2020 (3.53) (5.1%) 68.63 100.0% 2021 0.00 0.0% 68.63 100.0% Total 68.63 100.0%

( ) = negative, ADB = Asian Development Bank. Source: ADB.

Figure A6.1: Projection and Cumulative Disbursement of ADB Loan Proceeds ($ million)

ADB = Asian Development Bank. Source: ADB.

0.00

20.00

40.00

60.00

80.00

2012 2013 2014 2015 2016 2017 2018 2019 2020

Actual Disbursements Projections Disbursements

32 Appendix 6

Table A6.2: Annual and Cumulative Disbursement of ADB Grant Proceeds ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount ($ million) % of Total

Amount ($ million) % of Total

2013 0.00 0.0% 0.00 0.0% 2014 0.50 12.0% 0.50 12.0% 2015 0.24 5.7% 0.73 17.8% 2016 0.42 10.2% 1.15 28.0% 2017 2.05 49.9% 3.21 77.9% 2018 0.71 17.2% 3.91 95.1% 2019 0.28 6.8% 4.20 101.9% 2020 (0.08) (1.9%) 4.12 100.0% 2021 0.00 0.0% 4.12 100.0% Total 4.12 100.0%

( ) = negative, ADB = Asian Development Bank. Source: ADB.

Figure A6.2: Projection and Cumulative Disbursement of ADB Grant Proceeds ($ million)

ADB = Asian Development Bank. Source: ADB..

Appendix 6 33

Table A6.3: Contract Awards and Disbursement Projections Changes of Loan and Grant Proceeds

Projection Version

Date Reasons for Revised Projection

Version 1 01-Aug-2013 Project Effectiveness Version 2 31-Dec-2013 2013 actualization Version 3 29-Mar-2014 Revised Disbursement Plan 2014 Version 4 04-Dec-2014 Following OSFMD’s memo on 2014 CAD Projections cleanup Version 5 31-Dec-2014 2014 actualization Version 6 31-Dec-2015 2015 actualization Version 7 26-Apr-2016 Following OSFMD’s memo on 2016 CAD Projections cleanup Version 8 31-Dec-2016 2016 actualization Version 9 31-Dec-2017 2017 actualization Version 10 13-Mar-2018 Following closing date extension, reallocation of loan and

grant proceeds, and minor change approved on 23 Oct 2017 Version 11 31-Dec-2018 2018 actualization Version 12 31-Dec-2019 2019 actualization Version 13 26-Aug-2020 Partial cancellation of loan proceeds Version 14 08-Jan-2021 Partial cancellation of loan proceeds Version 15 22-Jan-2021 Partial cancellation of grant proceeds Version 16 31-Dec-2020 2020 actualization

CAD = contract awards and disbursements, OSFMD = Operations Support and Financial Management Department, Asian Development Bank. Source: ADB.

34 Appendix 7

CONTRACT AWARDS OF ADB LOAN AND GRANT PROCEEDS

Table A7.1: Annual and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

Annual Contract Awards Cumulative Contract Awards

Year Amount ($ million) % of Total

Amount ($ million) % of Total

2013 0.83 1.2 0.83 1.2 2014 5.29 7.7 6.12 8.9 2015 14.85 21.6 20.98 30.6 2016 12.61 18.4 33.59 48.9 2017 8.72 12.7 42.31 61.7 2018 16.51 24.1 58.83 85.7 2019 9.15 13.3 67.98 99.0 2020 0.65 0.9 68.63 100.0 2021 0.00 0.0 68.63 100.0 Total 68.63 100.0 ADB = Asian Development Bank. Source: ADB.

Figure A7.1: Projection and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

ADB = Asian Development Bank. Source: ADB.

0.00

20.00

40.00

60.00

80.00

2012 2013 2014 2015 2016 2017 2018 2019 2020

"Actual Contract Awards" "Projections Contract Awards"

Appendix 7 35

Table A7.2: Annual and Cumulative Contract Awards of ADB Grant Proceeds ($ million)

Annual Contract Awards Cumulative Contract Awards

Year Amount ($ million) % of Total

Amount ($ million) % of Total

2013 0.00 0.0 0.00 0.0 2014 0.19 4.6 0.19 4.6 2015 0.50 12.2 0.69 16.7 2016 0.19 4.5 0.87 21.2 2017 1.33 32.4 2.21 53.6 2018 1.06 25.8 3.27 79.5 2019 0.82 19.9 4.09 99.3 2020 0.03 0.7 4.12 100.0 2021 0.00 0.0 4.12 100.0 Total 4.12 100.0 ADB = Asian Development Bank. Source: ADB.

Figure A7.2: Projection and Cumulative Contract Awards of ADB Grant Proceeds ($ million)

ADB = Asian Development Bank. Source: ADB.

36 Appendix 8

FUND CHANNELING MECHANISM

Figure A8.1: Fund Flow Diagram for Public Polytechnics

ADB = Asian Development Bank, BO = operational bank, DGHE = Directorate General of Higher Education, KPPN = treasury office, MOEC = Ministry of Education and Culture, PIU = project implementation unit, PMU = project management unit, WA = withdrawal application. Notes:

1. Project polytechnics submits a project proposal to the project management unit (PMU) reviewed by the Review Committee (RC). The approved proposal and work plan become the basis for Annual Budget Plan (DIPA) processing.

2. Based on review results and recommendation of the RC, the project director signs a contract (memorandum of understanding) with each project polytechnic. The PMU reviews and approves annual budget plan for inclusion in the DIPA based on the overall plan.

3. (a) The PMU signs contracts for work and services at the central level; (b) the project implementation unit (PIU) signs contracts for goods and services at the project polytechnics to implement the work plan as agreed in the DIPA.

4. (a) The PMU submits payment order (SPM) to the treasury office (KPPN) at central to request payments for contractors and suppliers in the central; (b) PIU submit SPM to local KPPN for payment of goods and services to supplier/contractor at project polytechnic.

5. KPPN issued SP2D (remittance order) to request the operational bank (BO) to transfer the funds to PMU/PIU or contractor.

6. Funds are transferred from BO to PMU/PIU/contractor 7. PIU submits full financial reports and documents (copy SP2D, receipts, contracts, etc) to PMU for the basis of 8. Preparing withdrawal application (WA). 9. PMU submit WA to DG Treasury for replenishment of advanced account.

Source: Project Management Unit.

Advanced Account,

Bank Indonesia

Appendix 8 37

Figure A8.2: Fund Flow Diagram for Private Polytechnics (financed through NSF)

ADB = Asian Development Bank, BO = operational bank, DGHE = Directorate General of Higher Education, KPPN = treasury office, MOEC = Ministry of Education and Culture, PIU = project implementation unit, PMU = project management unit, WA = withdrawal application. Notes:

1. Project polytechnics submits a project proposal to the project management unit (PMU); reviewed by Review Committee (RC). The approved proposal and work plan become the basis for annual budget plan release of funds through National Skills Funds (NSF).

2. Based on review results and recommendation of the RC, the project director signs a contract (memorandum of understanding) with each project polytechnic. The PMU reviews and approves annual budget plan for inclusion in the budgetary procedures (DIPA) (PMU).

3. PIU signs contracts for goods and services at the project polytechnic to implement the work plan as agreed in the budget plan.

4. PIU submit request for payment to local KPPN through PMU; and PMU submit SPM to KPPN. 5. KPPN issued SP2D to request the operational bank (BO) to transfer the funds to PIU. 6. (a) Funds are transferred from BO to PIU account for self-managed activities. (b) Funds are transferred from BO to contractor/supplier account. 7. PIU submits full financial reports and documents (copy receipts, contracts, etc.) to PMU for the basis of

preparing withdrawal application (WA). 8. PMU submit WA to DG Treasury for replenishment of advance account.

Source: Project Management Unit.

Advanced Account,

Bank Indonesia

38 Appendix 9

APPRAISAL AND ACTUAL IMPLEMENTATION SCHEDULE Source: Project Management Unit.

Actual At appraisal

Appendix 10 39

CHRONOLOGY OF MAIN EVENTS Date Event 2011 12 August Interdepartmental Concept Meeting 2 September Concept paper approval by VP-O2 1–23 December Loan fact-finding mission 2012 10 September Loan negotiations 31 October Board approval 21 November Loan agreement 2013 7 January Loan effectiveness 11–22 February 20 May

Loan Inception Mission Initial Loan Disbursement

31 May Grant agreement 2014 7–18 January Loan Review Mission 1 27 February Grant effectiveness 30 April Initial grant disbursement 9–17 December Loan Review Mission 2 2015 23–24 January Loan Review Mission 3 6 July–28 August Loan Review Mission 4 5 September Special Loan Administration 11–17 November Midterm Project Review 2016 27 July–15 August Loan Review Mission 5 2017 6–14 March Loan Review Mission 6 22–29 November Loan Review Mission 7 2018 28 June–11 July Loan Review Mission 8 30 August–1 September Loan Review Mission 9 23 October ADB approved the Government’s request for closing date extension and

reallocation of loan and grant proceeds 2-5 December Loan Review Mission 10 2019 20 February–25 March Loan Review Mission 11 18 June–20 July Special Loan Administration 7–15 October Loan Review Mission 12 31 December Loan and grant closing 2020 30 June End of 6-month winding-up period 3 July ADB approved partial loan cancellation of $2.84 million 9 July Final disbursement of grant proceeds 13 July Final disbursement of loan proceeds 24 August–27 October Project completion review mission 26 November 2021 30 September

ADB approved final cancellation of loan ($3.53 million) and grant ($109,208.57) proceeds Final APFS received by ADB

ADB = Asian Development Bank, APFS = audited project financial statements. Source: ADB.

40 Appendix 11

PROJECT MANAGEMENT ORGANIZATION STRUCTURE

ADB = Asian Development Bank, EA = executing agency, MOEC = Ministry of Education and Culture, PSC = project steering committee, PMU = project management unit, PIU = project implementing unit, RC = review committee. Source: ADB (Project Management Unit).

34 PIUs in Polytechnics

Appendix 12 41

SUMMARY OF CONSULTANT RECRUITMENT AND PROCUREMENT

A. Consulting Services

Table A12.1 Consulting Services funded by Loan 2928-INO

No

Position Name of Consultant Selection method

Contract Date

Contract Amount

($) 1 Financial Management

Specialist Purwo Yuwono ICS 15 Aug 2013 174,584.36

2 Procurement Specialist Sigit Pramono ICS 26 Jun 2013 31,001.88 3 Procurement Specialist Ronny Soesatyo ICS 3 Dec 2014 296,587.39 4 Capacity Development and

Project Management Specialist

Benny Hartanto ICS 16 Oct 2015 22,699.09

5 Gender Specialist Farsidah Lubis ICS 26 Mar 2016 138.43 6 Gender Specialist Dewayani Dyah Savitri ICS 21 Jun 2017 54,881.11 7 Information Management

Specialist Wildan Toyib ICS 14 Mar 2014 20,363.21

8 Information Management Specialist

Titis Sutisna ICS 19 Oct 2015 222,940.00

9 Project Management Specialist

Laksmita Anggraeni ICS 12 Jul 2019 14,308.08

10 Procurement Consultant for Completion Report

Salam Hudoyono ICS 9 Sep 2019 7,943.57

11 Development of Social Marketing and Advocacy Strategy

PT Sandi Perkasa JV with PT Tripcons Internasional

CQS 25 Feb 2016 201,636.51

12 Monitoring and Evaluation Consultant

PT Inacon Luhur Pertiwi CQS 1 Nov 2016 730,878.63

13 Study on Polytechnic Graduate relevance and Employability

PT Inacon Luhur Pertiwi CQS 15 Oct 2018 144,398.40

14 Public Accountant Firm in 2017

KAP Dani Sudarsono & Rekan

CQS 7 Dec 2017 52,086.50

15 Public Accountant Firm in 2018

KAP Dani Sudarsono & Rekan

CQS 28 Jun 2019 50,989.22

16 Study of Polytechnic Profile PT Trans Intra Asia CQS 30 Apr 2019 61,319.32 17 Project Completion Report

Consultant PT Trans Intra Asia CQS 28 Jun 2019 60,731.24

18 Individual Consultants for Curr Dev, Aluminium Ship Design and Aluminium Ship Construction PNS NSF

Various ICS 16 Sep 2015 9,113.58

19 Individual Consults to Prepare Learning Outcome Forwood En Ship Industry, Frp Ship Industry & Design – Con

Various ICS 30 Oct 2015 10,961.21

20 Individual Consultants for TUK Chem Engineering, LSP Chem Eng, and SKKNI Chem Eng (Pack 1, 2, 3)

Various ICS 04 Nov 2015 5,060.07

42 Appendix 12

21 Poliban ICS TA for Planning Fiber Optic Network (P01) - Nsf Batch 1

Tri Adhi Wijaya ICS 23 Nov 2015 1,210.70

22 Polinema - ICS - Consultant To Teaching Factory Fruit Chips

Mohammad Zulfikar ICS 15 Oct 2018 144,398.40

23 Polinema - ICS - Teaching Factory - Fruit Juice NSF 1

Ir Moeljo Kurniawan ICS 30 Apr 2019 61,319.32

CQS = consultants’ qualification selection, ICS = individual consultants’ selection, INO = Indonesia. Source: ADB (Project Management Unit).

Table A12.2 Consulting services funded by Grant 0343-INO

No Position Name of consultants Selection method

Contract Date

Contract Amount

($) 1 Advocacy Campaign

Specialist & Associate Dyah Dharmikasari Soegondo

ICS 1 Nov 2017 89,436.20

2 Photographer & Associate Nikki Almon ICS 1 Nov 2017 16,885.75 3 Writing Books – The Journey

to Establish COT in Polytechnic

Abiratno ICS 9 Oct 2018 6,959.90

4 Writing Books – The Journey to Gender Mainstreaming in Polytechnic

Sukemi ICS 9 Oct 2018 4,239.78

5 Writing Books – PEDP Success Stories

Bambang Trimansyah ICS 9 Oct 2018 8,051.21

6 Training Program in Safety Laboratory for Management and Staff

PT Miskat Alam Konsultan JV with PT Phitagoras Global Duta

CQS 31 Aug 2018 141,122.55

7 Lead Consultant Services for COT

Maxwell Stamp Ltd JV with Asian Management Consulting (AMC)

QCBS 30 Dec 2016 848,590.97

8 Study on Energy Consumption and Carbon Footprint Audit to support the Development Green Campus in Polytechnic

PT TUV SUD Indonesia CQS 15 Jun 2017 168,286.36

9 Strategic Media Placement Consultant/

PT Vetiga Himais Optima CQS 8 Dec 2017 368,245.20

10 Media Promotion Research/ PT Geo Informasi Sejahtera JV with PT Citi Asia Internasional

CQS 3 July 2019 95,065.97

11 Organizing Study Visit Of Polytechnic Staff And Senior Officers Of Morthe To Canada

Colleges and Institutes of Canada

CQS 17 Nov 15 198,800.00

12 Training Provider for Applied Research Training in Canada For Polytechnic and MORTHE Staff

Colleges and Institutes of Canada

CQS 17 Nov 15 198,800.00

13 Internship Program on Establishing COT

Colleges and Institutes of Canada

CQS 18 Mar 16 186,118.40

CQS = consultants’ qualification selection, ICS = individual consultants’ selection, INO = Indonesia, QCBS = quality- and cost-based selection. Source: ADB (Project Management Unit).

Appendix 12 43

B. Procurement of Goods and Civil Works

Table A12.3 Procurement of Goods and Civil Works funded by Loan 2928-INO

Scheme 2014 2015 2016 2017 2018 2019 Total

G CW G CW G CW G CW G CW G CW G CW

PMU 5 0 0 0 2 0 2 0 1 0 0 0 10 0 Assignment 15 0 39 0 47 0 54 0 6 0 0 0 161 0 Batch-1 21 4 48 6 51 8 0 0 0 0 0 0 120 18 Batch-2 0 0 22 6 41 13 1 0 0 0 0 0 64 19 Batch-3 2 0 12 0 20 0 18 2 1 0 0 0 53 2 Strength. 0 0 0 0 0 0 15 6 80 12 31 12 126 30 Adv. Assign.

0 0 0 0 0 0 0 0 10 0 5 6 15 6

Special Assign.

0 0 0 0 0 0 0 0 0 0 8 0 8 0

Total 43 4 121 12 161 21 90 8 98 12 44 18 557 75

Total 632 CW = civil works, G = goods, INO = Indonesia, PMU = project management unit. Source: ADB (Project Management Unit).

Table A12.4 Procurement of Goods and Civil Works funded by Grant 0343-INO

Scheme 2014 2015 2016 2017 2018 2019 Total

G CW G CW G CW G CW G CW G CW G CW

PMU 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

CW = civil works, G = goods, INO = Indonesia, PMU = project management unit. Source: ADB (Project Management Unit).

44 Appendix 13

GENDER ACTION PLAN IMPLEMENTATION AND ACHIEVEMENTS A. Introduction

1. The Polytechnic Education Development Project (PEDP) supported the Government of Indonesia’s policy on economic development to poorer regions across Indonesia. The project helped to improve access to, and the quality and relevance of, the polytechnic system to deliver improved skills that meet the needs of employers and the employment aspirations of graduates. The project provided targeted support to polytechnic institutions in six economic corridors to strengthen their capability to deliver demand-driven, high-quality programs related to five main sectors: manufacturing, infrastructure, mining, agroindustry, and tourism.1

2. The expected impact of project was to produce graduates responsive to the needs of the labor market and contribute toward increasing productivity in the five priority sectors. The outcome of polytechnic education performance targeted: (i) the number of polytechnic students enrolled in study programs in the five priority sectors increased by 25%, with at least 30% of female students; and (ii) the number of polytechnic graduates finding relevant employment within 6 months of graduation increased by 25% in five priority sectors, including at least a 15% increase for women.

3. The project delivered four outputs: (i) the improved quality and relevance of the polytechnic system, (ii) expanded and more equitable access to polytechnic institutions, (iii) increased private sector involvement in the polytechnic sector, and (iv) strengthened governance and management of polytechnic education.

B. Gender Issues

4. The social and gender issues, which were identified through the socioeconomic and poverty assessment, were the following:2

(i) The limited access of women to nontraditional high-quality skills-development programs;

(ii) Female students’ limited access to technical training because of fees and living expenses;

(iii) Lack of knowledge related to the range of study programs and career prospects for women in male-dominant skills areas;

(iv) Female students facing academic barriers in accessing polytechnic education for lack of recognition of practical experience and prior learning; and

(v) Inadequate incentives including equity strategies and scholarships to encourage more women to enter nontraditional sectors.

C. Project Gender Features

5. In response to the identified gender issues, the gender action plan (GAP) of the project had the following activities and targets:

(i) At least 30% female enrollment in the priority sectors;

1 Six geographic economic corridors included: Sumatera, Java, Kalimantan, Sulawesi, Bali and Nusa Tenggara, and

Papua and Kepulauan Maluku. The identified priority industrial sectors included: manufacturing, infrastructure, mining, agro-industry, and tourism. Logistics was added during implementation.

2 ADB. 2012. Report and Recommendation of the President to the Board of Directors—Republic of Indonesia, Polytechnic Education Development Project. Manila. Summary Poverty Reduction and Social Strategy.

Appendix 13 45

(ii) A target of at least 15% of female polytechnic graduates entering the workforce by 2015;

(iii) 4,800 female students tested and certified to endorsed standards in the priority skills areas by 2016;

(iv) Ensuring that at least 10% of funds within each proposal submitted to the National Skill Fund are used for innovative programs to increase female access to priority sectors;

(v) 20% of project-supported scholarships allocated to female students; (vi) 20% of lecturers trained being female; (vii) 20% of the management and staff in the project Executing Agency and the

selected polytechnics trained on technical and management skills to meet industry standards are female;

(viii) Implementation of a social marketing campaign to promote female participation and mobilize employers to recruit women in non-traditional trades;

(ix) 20% female representation in review committees; (x) development of a gender strategy for the polytechnic sector, and (xi) Integration of gender monitoring and evaluation indicators in the design and

monitoring framework to track the implementation of the GAP. 6. To support GAP implementation, a national gender specialist was recruited at the project management unit (PMU) to provide technical guidance on gender mainstreaming; and coordinate and consult with a wide range of stakeholders, including government officials and agencies, project polytechnics, industry and professional associations, industries/employers, academicians, etc. D. Gender Action Plan Achievements

7. As shown in the GAP Achievements Matrix (Table A13), from 18 activities, 2 were removed (activities 3 and 4).3 From the remaining 16 activities, 15 were completed (94%). Additionally, 10 out of 11 targets (91%) were achieved.

Table A13. Gender Action Plan Achievements Matrix

GAP Activities and Targets

Achievements Status at Project

Completion

Output 1: Increased quality and relevance of polytechnic system

1. Develop a gender mainstreaming strategy for the polytechnic sector (The scope is outlined in the TOR of national consultant recruited under PEDP to develop the strategy)

In July 2017, a national gender consultant was recruited. The tasks of the gender consultant as stated in TOR were to: (i) develop gender mainstreaming strategy for the polytechnic sector; (ii) assist the project in implementing and monitoring the GAP; (iii) provide training of trainers on gender issues; (iv) participate in the monitoring of project activities to ensure gender sensitivity; (v) assist in ensuring gender sensitivity in marketing campaign; (vi) review and advise on gender issues related to curriculum development, samples of learning material, assessment instruments and guides; and (vii) advise in the development of policies, regulation and guideline to ensure gender equal access in the polytechnic system.

Activity completed.

3 See memorandum of understanding of the Review Mission 14 November–20 December 2017.

46 Appendix 13

GAP Activities and Targets

Achievements Status at Project

Completion ACTIVITY 1

After the gender consultant was on board, a series of activities were conducted supporting the process of developing gender mainstreaming strategy for the polytechnic sector. Those activities included: • A workshop on establishment of Gender Focal Points

(GFP) (2–3 October 2017) • A workshop on development of gender mainstreaming

strategy in polytechnic sector (27–28 October 2017) • Two workshops on integration of the GAP into monitoring

systems (6-7 and 27–28 November 2017) • A training program on gender for Internal Quality

Assurance Officers (16–17 November 2017), and • A training program on gender for GFP (17–18 November

2017) On 9–10 November 2017, a gender workshop for polytechnic directors was conducted. During this workshop, a Declaration of Commitment on Gender Mainstreaming in PEDP Polytechnics was formulated and signed by 29 polytechnics directors. The declaration stated their commitments to (i) promote gender equity and equality, (ii) provide a legal basis for GFP, (iii) provide support to activities related to gender mainstreaming, (iv) develop polytechnic gender mainstreaming strategy in line with the national policies, (v) build and maintain network and sharing experiences, and (vi) ensure the availability of sex-disaggregated data as analytical basis to improve the implementation of gender mainstreaming in a sustainable manner. This commitment served as guidance for the development of gender mainstreaming strategy in each polytechnic (see activity 15).

2. Ensure that study program materials developed based on the revised industry standards, for example, modules, lecture guides, learning materials, assessment instruments and assessment guides, etc., are gender sensitive and include positive images of women working in the priority sectors. ACTIVITY 2

Three sets of program materials addressing women’s issues were reviewed as samples. These were: (i) Komunikasi Bisnis (Business Communication); (ii) Layout Pabrik (Factory Layout); and (iii) Keselamatan Kerja (Occupational Health). These materials were not gender-sensitive. They may have been authored by, or their writing supervised by persons who work in technical fields. Gender is a social concept, and the authors or supervisors may not have been familiar on how to translate it within a technical context or environment. Draft guidelines on gender sensitive material development (titled “Practical Tips in Development Teaching Materials”) were drafted and distributed among project implementation unit (PIU) managers. The guidelines discuss gender and why gender equality perspective should be used. A checklist for easy integration in the process of development teaching materials was included in the guidelines. This checklist consists of general principles and specific rules that can be applied to specific materials. Lecturers using these materials

Activity completed.

Appendix 13 47

GAP Activities and Targets

Achievements Status at Project

Completion can improve their specific checklists to make them appropriate in their context.

3. Ensure that in the revision of guidelines/ procedures for accreditation, polytechnics are required to follow access and equity policies that promote equal access of females and males in the priority skill areas. ACTIVITY 3

The revision of guidelines and procedures of accreditation was not implemented as it was beyond the project’s domain. This activity was removed (see Memorandum of Understanding [MOU] Review Mission 14 November–20 December 2017).

Activity removed.

4. Ensure female representation amongst 39 lecturers to be trained to international standards and 200 lecturers to be trained to agreed standards (20% female). TARGET 1 DMF 1.2.

The project exceeded the design and monitoring framework (DMF) target of 39 as 279 lecturers engaged in master’s and doctoral programs. Eighty-eight were female (32%).

FEMALE MALE SUBTOTAL Master and Doctoral Programs for lecturers

88 32% 191 68% 279

The project also exceeded the DMF target of 200 lecturers to be trained. Actual number of trained lecturers is 2,227, of which 621 were female (28%).

FEMALE MALE SUBTOTAL Lecturers trained

621 28% 1,606 72% 2,227

Activity completed. Target achieved.

5. Ensure that gender targets are included in the project HRD plan, with at least 20% of female lecturers trained in skill areas with low female representation (infrastructure and manufacturing), 30% in agro-industry and at least 50% of female teachers trained in tourism. TARGET 2

Gender target is met. FEMALE MALE SUBTOTAL Engineering 457 26% 1,332 74% 1,789 Agriculture 150 36% 272 64% 422 Tourism 21 62% 13 38% 34 TOTAL 628 28% 1,617 72% 2,245

As of September 2018, at least 9 polytechnics (Polytechnic of Jember, Polytechnic of Banyuwangi, Polytechnic of Lampung, Polytechnic of Batam, Polytechnic of Surabaya, Polytechnic of Sanata Darma, LPP Yogyakarta, ATMI Surakarta, Agriculture Polytechnic of Samarinda) already had a plan to increase the capacity of female lecturers through trainings in areas with low female representation (infrastructure, manufacturing, agro-industry, and tourism.

Activity completed. Target achieved.

6. Of 24,000 students tested and certified to endorse

Total overall target was not achieved, but the gender target achieved.

Activity completed.

48 Appendix 13

GAP Activities and Targets

Achievements Status at Project

Completion standards in diploma programs by 2016, 20% are female. TARGET 3

DMF 1.3

FEMALE MALE SUBTOTAL Students tested and certified

6,674 34% 12,977 66% 19,651

Overall target not achieved. Gender target achieved.

7. Ensure that at least 30% of the short courses developed through the project target the study programs that benefit females. TARGET 4

The improved curricula and training modules benefitted female students as reflected by the achievement of: (i) female students entering the polytechnics by 34%; and (ii) female graduates entering the job market by 33%.

Activity completed. Target achieved.

Output 2: Increased and more equitable access to polytechnic institutions

8. Ensure that selection of project polytechnics targets those institutions with a relatively high number of females in the priority sectors. ACTIVITY 4

The selection of project polytechnics was mainly based on relevance of fields with industry priority in the pre-identified regions, and they were selected through a competitive mechanism. This activity has been removed (see MOU Review Mission 14 November–20 December 2017).

Activity removed.

9. Ensure that the review and revision of entry requirements address access and equity dimensions to increase female enrolment in the priority sectors. ACTIVITY 5

The entry requirements have addressed access and equity dimensions to increase female enrolment in polytechnics, as evidenced in the increased participation of women in priority sectors. Politeknik Mekatronika Sanata Dharma (PMSD, or Mechatronics Polytechnic of Sanata Dharma) provided student loans and scholarships for women from poor families as a priority target.4 Similarly, Lembaga Pendidikan Perkebunan (LPP or Agriculture Education Institute, Yogya) provided access to all regardless of ethnicity, race, religion, sex, or any social background, as stated in the polytechnic policy (Surat Keputusan No. 196A/SK/P/AU/XII/2015). This institution also considered issues of sexual harassment as part of their policy’s Chapter III on Ethics. Polytechnic of Manufacture Bandung determined a 15% female quota for scholarship recipients. Polytechnic of Batam targeted program on study of electronics and machines for increasing female enrolment.

Activity completed.

4 Admission of New Students Special Line for PMSD & PMSD Student Loan

http://www.pmsd.ac.id/?a=Wll0LzJZbkpsOS9QNEVqMWREUUxEL0NoMy5zUk9n=#.WxAV6J8zbIV

Appendix 13 49

GAP Activities and Targets

Achievements Status at Project

Completion Despite not having a written or formal gender equality statement or policy, some polytechnics, namely Polytechnics of Pangkep, Banyuwangi, Surabaya, and Ambon encouraged female students to apply and enter their institutions, particularly in study programs where women were under-represented. The promotion of gender equality was not only reflected in the recruitment process but was also promoted at the beginning of students’ school year. At least four polytechnics integrated gender equality perspectives on the first day with new students.

10. Implement the RPL system and target 30% female assessment and enrolment into the priority sectors (of total 12,000). TARGET 5

The overall RPL target nor the gender target were not achieved due to: (i) lack of procedural clarity on RPL implementation under the guiding principles of (a) Minister of National Education Regulation No. 20 of 2011 concerning the Implementation of Study Programs Outside the Domicile of Higher Education (Permen Diknas No. 20 tahun 2011 tentang Penyelenggaraan Program Studi di Luar Domisili Perguruan Tinggi), (b) Law No. 12 of 2012 concerning Higher Education (UU No. 12 tahun 2012 tentang Pendidikan Tinggi), and (c) Regulation of the Minister of Education and Culture No. 48 of 2013 concerning the Establishment, Change, and Revocation of Community Academy Permits (Permen Dikbud No. 48 tahun 2013 tentang Akademi Komunitas); and (ii) the target of RPL was not set-up based on a thorough demand analysis during the project design. The lack of clarity on RPL was resolved upon issuance of the Ministerial (MORTHE) Regulation no 26/2016 and the implementation guidelines issued by the Directorate General Learning and Student Affairs in 2017. However, the available time for implementing RPL was quite limited (i.e., only if fiscal year 2018-2019). Since RPL is relatively new, not many people and institutions are aware of this opportunity. Coupled with the absence of demand analysis of RPL during the design, this has caused another issue for polytechnics to attract participants to take RPL program. During 2018-2019 only about 1,600 participants admitted to RPL assessment. This is the reason why overall target was not met, and female participation was not achieved optimally.

FEMALE MALE SUBTOTAL Certified SMK students through RPL system

359 23% 1,236 77% 1,595

Activity completed. Target not achieved.

11. Ensure that selection of SMK (private and public) and private providers targets those schools with a relatively higher

The selection of SMKs (public and private) primarily considered the relevance of field of study and proximity. The proportion of female students was included in consideration but not as the main criteria. Baseline and midline data were collected to show that female enrollment was not sacrificed despite that SMKs (public and

Activity completed.

50 Appendix 13

GAP Activities and Targets

Achievements Status at Project

Completion number of poor and female students. ACTIVITY 6

private) primarily considering relevance of field of study and proximity as the criteria. Data from 2013 to 2018 shown below.

YEAR FEMALE MALE SUBTOTAL 2013 1,241 30% 2,873 70% 4,114 2014 1,331 27% 3,621 73% 4,952 2015 1,437 25% 4,338 75% 5,775 2016 1,546 23% 5,102 77% 6,648 2017 2,711 30% 6,387 70% 9,098 2018 2,723 29% 6,731 71% 9,454

12. Of 12,000 students assessed from SMK, 20% female. TARGET 6 DMF 2.2

The overall target not achieved but the gender target was achieved.

FEMALE MALE SUBTOTAL Awarded students at D1 level

828 24% 2,678 76% 3,506

Challenges: Government regulation has some restrictions, for example, only study programs that have at least B accreditation can implement credit transfer.

Activity completed. Overall target not achieved. Gender target achieved.

13. To ensure that the National Skills Fund (NSF) contributes to gender equality outcomes, ensure that the proposals submitted by the polytechnics are evaluated for their strategies and innovative programs to increase female student and teacher access and representation in the priority sectors. ACTIVITY 7

As of September 2018, there were two polytechnics (Pangkep and Cilacap) that have purposely mentioned gender aspects in their proposal for gender. The budget range was Rp15

million–Rp80 million. Polytechnic of Cilacap allocated the fund for developing gender responsive guideline.

Activity completed.

14. Ensure that each proposal submitted to NSF earmarks at least 10% of funds to promote access and equity issues. TARGET 7

Overall utilization of NSF by end of the project was Rp48.34 million. There was no record on percentage of the funds that were allocated for gender-related activities in the budgetary system since there was no specific coding that can be identified. However, looking at the achievement of Target 1 (lecturers completing master’s and PhD), Target 2 (female teacher trained), Target 3 (certified students), and Target 4 (updated short-courses) for which the female participation

ranges between 26%–34% (exceeding target), as well as scholarship and overall female student enrolment, it can be inferred that the budget allocation for gender-related activities must be above 10%.

Activity completed. Target achieved.

Appendix 13 51

GAP Activities and Targets

Achievements Status at Project

Completion 15. Ensure that at least

20% of the recipients of the 2,000 NSF Scholarships are females. TARGET 8 DMF 2.3

1,653 out of 3,895 NSF scholarship recipients were female (42%)

FEMALE MALE SUBTOTAL Scholarship recipients

1,653 42% 2,242 58% 3,895

Activity completed. Target achieved.

16. Ensure that career information on the priority sectors developed and disseminated by the project polytechnics in the secondary and SMK/private providers have specific components directed at females to familiarize them with the range of subjects, new technologies and employment opportunities that are available to females in the priority skill areas. ACTIVITY 8

Promotional materials such as videos, brochures, and leaflets were developed and distributed. These provided information on the subjects and fields offered, work opportunities and new technology opportunities, and encouraged female participation. Promotional materials portrayed positive images of both female and male students in various learning environments. The Polytechnic of Batam established a center for gender studies under its research center (P2M). The main function of this unit is to ensure gender issues are well considered. Several activities have been already completed, such as training on income generating including CSR. Polytechnic of Surabaya (PPNS) conducted career coaching every year. As member of Industrial Advisory Board, PPNS held meetings to seek inputs concerning the quality of graduated students, curriculum, on the job training, and so on. Other polytechnics such as Polytechnic Sanata Dharma, ATMI Surakarta, Polytechnic Banyuwangi, PENS Surabaya also conducted similar activities, including job fair collaboration with industries.

Activity completed.

17. Incorporate within the social marketing campaign components to: (i) promote female participation in the male dominated sectors; and (ii) mobilize the private sector to hire more women in these sectors. ACTIVITY 9

Social marketing activities started in November 2017. Several activities were carried out, amongst others the airing of Bincang Kita talk show on Kompas TV, publication of advertorial in Tempo Magazine, posting of inspirational story series on Kompas.com, and airing of “Kick Andy” show on Metro TV. These social marketing campaigns were distributed to various target groups with encouraging message that attending polytechnics can lead to a better future for women and men. In term of effectiveness, the assessment of social marketing through mainstream media is given below:

• The airing of “Bincang Kita” talk show on Kompas TV was watched predominantly by persons in the Upper 2 socioeconomic segment, and followed by the Upper 1 segment, all of whom were university graduates, 40 years old and above, and worked as professional executives.

• The publication of advertorial in Tempo Magazine reached more than 100 corporations; 12,000 premium consumers, between 20-50 years old, who held a

Activity completed.

52 Appendix 13

GAP Activities and Targets

Achievements Status at Project

Completion bachelor’s degree (61%), or a post-graduate, or a doctoral degree (21%), were considered loyal readers who were socially and economically established; and the public (high school students, university students, parents, and families).

• The inspirational story series on Kompas.com, were enjoyed by an audience between 25-44 years old from A and B class of socioeconomic segment. The most popular and most interesting stories were clicked on and read by more than 13,700 people (as of report preparation). More stories are presented at the end of this Appendix.

• “Kick Andy” show aired on Metro TV, reached 1.6 million of audience above 20 years old, or around 8.1 million TV audience with different occupations who worked as businessman/women, housewives, retirees, and employees. The audience data was gathered from 11 cities by the Nielsen survey (Jakarta, Bandung, Yogyakarta, Medan, Makassar, Palembang, Semarang, Surabaya, Denpasar, Banjarmasin and Surakarta).

Therefore, in general, PEDP messages could be considered to have reached a wide array of the audience effectively. The social marketing program continued and expanded to more attractive campaign materials and events, such as multi-stakeholder forums, op-eds, media visits, radio campaigns, infographics, Facebook, communication training, etc.

18. Encourage project polytechnics to ensure that their entrepreneurship development programs and funds provided for business start-up target female students. (NSF can be used for this purpose) ACTIVITY 10

This guidance was considered in the development of proposals and in designing activities. Entrepreneurship program was incorporated in the national education curriculum and became a course. In addition, entrepreneurship units were established at the polytechnics. Ujung Pandang State Polytechnic (PNUP) in Makassar, for instance, had an entrepreneurship unit based on science and technology. Information dissemination and training were conducted, followed by consultation and presentation by students. 20 students with best business plans were awarded with funds, technical assistance for business start-up, and participation in expo. Since PNUP found that some industries prefer to recruit men, it supported women, particularly those in male-dominated sectors, and encouraged them to participate in this program.

Activity completed.

Output 3: Increased private sector involvement in the polytechnic sector

19. Ensure that the partnership agreements with the private sector

This activity was implemented. For example, by providing intern and in-campus job interviews, male and female students were ensured to have equal access to participate in the events.

Activity completed.

Appendix 13 53

GAP Activities and Targets

Achievements Status at Project

Completion polytechnics addresses access and equity dimensions related to female enrolment and employment in the priority sectors. ACTIVITY 11

20. Ensure 20% female representation in the Review Committees (RC). TARGET 9

Gender target achieved. From 30 people who served as review committees, 8 were female (27%).

FEMALE MALE SUBTOTAL Review Committees

8 27% 22 73% 30

Activity completed. Target achieved.

21. In industry gatherings, PIUs will showcase female skill development and participation in the priority sectors and brief the private sector and employers on gender issues and corporate social responsibility (CSR) ACTIVITY 12

On job training provided evidence of good collaboration with industry communities. In addition, trainings have been conducted to equip polytechnic staff on gender and labor issues, including equal employment opportunities. By having this knowledge, polytechnics could address gender issues related to the private sector. A workshop with APINDO (The Indonesian Employers Association) was conducted to address gender issues in the labor market.

Activity completed.

22. Ensure 30% of internships and industry placements are female in the five priority sectors of infrastructure, manufacturing, agro-industry, tourism, and mining to support the project female employment targets. TARGET 10

Overall, 30% target is achieved. The project foster internship at industry, for which all male and female students are required to take internship for at least one semester. The percentage of student interns in each priority is proportional to the overall students.

FEMALE MALE SUBTOTAL Infrastructure 552 48% 599 52% 1,151 Manufacturing 170 12% 1,257 88% 1,427 Agro-industry 463 40% 697 60% 1,160 Tourism 785 51% 741 49% 1,526

Mining 56 15% 320 85% 376 TOTAL 2,026 36% 3,614 64% 5,640

Activity completed. Target achieved.

23. Encourage the private sector to hire more females in the priority skill areas. ACTIVITY 13

Meetings with APINDO (officially recognized employer organization in Indonesia to deal with industrial relations and human resource development issues) were held in 2018 to promote female participation in the priority skill areas. APINDO was also invited to provide a session on industry and gender. General impression of the participants (GFPs and Sistem Penjaminan Mutu Internal [Internal Quality Assurance System]) was positive. They did not realize that commercial organization like APINDO had concerns about gender issues.

Activity completed.

54 Appendix 13

GAP Activities and Targets

Achievements Status at Project

Completion The speaker from APINDO stated that gender equality and promotion of non-discriminatory practices in a workplace, including industries, were part of the international agreements that all parties had to follow. The speaker shared that APINDO is developing a gender mainstreaming policy for its 5,000 members across Indonesia.

Output 4: Strengthened governance and management of polytechnic education

24. Ensure that studies conducted to review and revise the regulatory and governance frameworks to support polytechnic development, analyze gender, social and equity issues and provide recommendations for mainstreaming gender in the sector. ACTIVITY 14

The study was undertaken through the process of implementation of project activities. In 2018, the project conducted three workshops and published a book titled The Journey of Gender Mainstreaming in Polytechnic. The workshops were on consolidating and integrating GAP into project monitoring and reporting system and a national seminar. Those workshops involved government institutions, including MORTHE, MOWE, BAPPENAS, and other relevant organizations. During these workshops, gender issues in polytechnics were addressed, including the absence of gender mainstreaming policy and strategic plan under MORTHE. These issues have been addressed in the book which was launched in December 2018. The book also illustrates good practices in mainstreaming gender in various polytechnics.

Activity completed.

25. Based on above analyses, develop a gender mainstreaming strategy for the polytechnic sector. ACTIVITY 15

As of September 2018, the process of mainstreaming gender in polytechnics resulted in the following: • 19 Polytechnic Gender Mainstreaming Strategy Plan or

59% of 32 polytechnics. Two polytechnics did not participate in this activity (Agriculture Polytechnic of Payakumbuh and State Polytechnic of Lhokseumawe).

• 32 GFPs represented 32 polytechnics. The number of members increased since several polytechnics established a gender team (more than one person who was selected previously). GFPs played multiple roles including as a conduit between PMU and polytechnic/PIU, disseminator of information, facilitator, monitoring and agent of change.

• 14 GFPs were supported with a legal decree (SK): PMSD, Polman, Polije, PADAMARA, Polnes, Polinela, PNUP, PNB, Polmed, LPP Yogyakarta, Polibatam, PPNS, Polinema, and PCR.

• 6 polytechnics placed gender activity in the existing unit within organization. They were PMSD/CDC, Polman/Unit Gender & Konseling, Polinela/Unit Humas, PNB/Development Unit, Polnes/LPPM, and PCR/SPMI

• Several polytechnics conducted workshops on socialization of gender mainstreaming plans with and without support of project, such as Polinela, Polnes, PMSD, Polinela, PNB, PPNS.

• Beside these activities, gender activities were integrated in relevant occasions such as comparison study (PMSD, Polinela), newly student gathering (ATMI, LPP, Polinela,

Activity completed.

Appendix 13 55

GAP Activities and Targets

Achievements Status at Project

Completion PMSD), and collaborated activities with local communities (Polibatam).

26. Ensure that the professional development training program for the 12-project polytechnic managerial staff have a module on gender issues, including sensitivity training and promotion of girls in nontraditional occupations. ACTIVITY 16

Due to budget limitations and time constraints, trainings on gender issues and promotions of girls in nontraditional occupations used modules developed by the International Labour Organization.. Peer group sessions were carried out in trainings in the form of experience sharing among GFPs themselves. Most of the GFPs hold position as head of program study or unit. This means they also played a role as a leader where they could practice leadership principles. In addition to trainings, the gender consultant provided mentoring to polytechnics based on their needs. The project also conducted leadership trainings supported by Seneca and Professor Meyer and team from December 2017 until November 2018. The gender issues were integrated into the agenda and specific session on gender equality for emerging leaders for polytechnics on 30 November 2018.

Activity completed.

27. Ensure 20% of the management and staff in the project Executing Agency and the selected polytechnics trained on technical and managerial skills that will allow their qualifications to be aligned with industry standards. TARGET 11 DMF 4.1.

Project exceeded the 20% target. As reported by PT. Inacon, all activities that were carried out considered female access and participation such as training and workshop on quality assurance, center of technology, etc.

FEMALE MALE SUBTOTAL Trained polytechnic managers and staff in project management

128 28% 329 72% 457

Activity completed. Target achieved.

28. Ensure that Polytechnic information systems report sex disaggregated data on enrolments, scholarships, drop-outs, graduates, etc. ACTIVITY 17

Coordination with project Monitoring Team (PT. Inacon) started in 2017. There were several collaborative activities outlined below. • Three Workshops on Integration of Gender Action Plans

(GAP) on 6–7 November 2017 (Jakarta), 27–28 November 2017 (Bandung), and 27–29 September 2018 (Batam).

• The workshops aimed to integrate GAP into project monitoring and reporting system. PEDP had two gender targets at outcome level, and eight gender targets at output level. Those targets are reflected by sex disaggregated data which PT. Inacon collects and monitor regularly.

• In general, GAP updates can use data collected by PT. Inacon regularly, and specific data needed by GAP can be collected from PT. Inacon with specific efforts such as through their regular visits to polytechnics.

Activity completed.

56 Appendix 13

GAP Activities and Targets

Achievements Status at Project

Completion

• Familiarization for PT. Inacon staff as data collector and polytechnics’ staff (SPMI) as data supplier was important. In regard to this, the project provided training on gender issues for these parties (16–17 November 2017) and facilitated collaboration between GFPs and SPMI (27–28 September 2018).

• Information system and student affairs are shown below.

FEMALE MALE SUBTOTAL Registered students

3,909 24% 12,385 76% 16,294

Scholarship recipients

503 25% 1,547 75% 2,050

Drop out students

44 10% 407 90% 451

Graduated students

443 16% 2,313 85% 2,756

Placed students

210 12% 1,520 88% 1,730

• By analyzing the sex-disaggregated data, polytechnics

can take needed actions. This action has been reflected into policy to improve the number of female students in several program studies with unbalanced distribution between female and male students such as PMSD and ATMI.

29. Encourage that

Project Polytechnic tracer studies include sex disaggregated data and report on the results. ACTIVITY 18

A draft on implementation of tracer study was developed. The issue regarding Tracer Study was raised in the Workshop on Consolidation for GFPs in September 2018. The Tracer Study tool developed by BELMAWA has 13 questions to track graduated students. Sex-disaggregated data provides information on whether women have equal access to the labor market. However, the current tool only considers the formal sector, which is not always appealing to women due to personal or social reasons and they often prefer to create a home industry in the informal sector. Sex-disaggregated data not being collect in the informal sector means that the polytechnics are not able to fully trace all graduates. In addition, at least 14 out of 19 polytechnics conducted tracer studies. They are Polije, PMSD Sanata Dharma, ATMI Surakarta, State Polytechnic Banyuwangi, State Polytechnic Indramayu, LPP Yogyakarta, State Polytechnic Medan, PPNS, POS Indonesia, State Polytechnic Cilacap, State Polytechnic Malang, State Polytechnic Batam, and State Polytechnic Manufacture Bandung. Polman used several methods on-line through http://tracerstudy.polman-

Activity completed.

Appendix 13 57

GAP Activities and Targets

Achievements Status at Project

Completion bandung.ac.id; visit at http://kududi.polman-bandung.ac.id/login.php

BAPPENAS = Ministry of National Development Planning; GAP = Gender Action Plan; GFP = Gender Focal Point; MORTHE = Ministry of Research, Technology, and Higher Education; MOWE = Ministry of Women’s Empowerment and Child Protection; SPMI = Sistem Penjaminan Mutu Internal (Internal Quality Assurance System)

Source: Asian Development Bank.

E. Evidence on Gender-Related Benefits from PEDP

8. Participation and access to project resources and practical benefits. At the project level, women’s participation increased as evidenced by several indicators. Enrollment rate of female students increased from 4,170 to 7,664. Similarly, indicator on women entering workforce increased from 972 to 2,019 people. Detailed data on participation of female students and female lecturers can be seen below:5 For students:

• Output 1: Certified female students who took competent test increased from 3,320 to 6,674.

• Output 2: Scholarships for female students increased from 422 to 1,653. • Output 2: Female students’ engagement in Diploma Level 1 PVB program increased from

348 to 828.

For lecturers: • Output 1: Engagement in master and doctoral program increased from 29 people to 56

people. • Output 1: Training in domestic and overseas increased from 395 people to 599 people. • Output 1: Received certificate from training above increased from 159 people to 1,282

people. • Output 4: Training on management increased from 66 people to 128 people.

9. Strategic changes in gender relations. The PEDP project with its requirement to implement GAP and a strong message on gender equality as well as affirmative action has brought positive impact to the environment of polytechnics in general. It can be seen by increased activity of most GFPs and some high rank officials, such as the director, management, or PIU. For instance, the issues of day care and lactation facilities are usually associated with women. However, they have been addressed and discussed by male as well as female lecturers. Now, some polytechnics have succeeded in having day care and lactation facilities on their campuses. Another example related to changing of gender relations happened in Politeknik Negeri Ujung Pandang (PNUP). Ms. Hafsah Nirwana, a lecturer (also GFP), ran as a candidate in the election for the Director of the polytechnic. It was the first time ever for a woman to run in an election for a director position in that polytechnic. She called it as “competing in the male world.” Although she did not win, she has opened the path for other women to follow.

5 For a more recent gender-wise enrolment data, see Appendix 3.

58 Appendix 13

Box A13: Case Examples Beneficiary 1: Scholarship Recipient Ms. Rizky Morany Saragih, Student, Medan State Polytechnic (Polmed) I was born as the fourth child of six siblings, to a father who is a farmer and a mother who is a tailor. My family is barely surviving. I still remember well when my parents said that they probably didn't have the money to finance their children’s college education. I managed to enter and study at Polmed through the Bidikmisi Scholarship. I did this without my parents knowing. I took care of all the administration myself until I was finally admitted to the Mechanical Engineering Study Program, which was not my first choice. I still accepted this study program because I like challenges. Entering the first semester, I felt a little awkward, because I was the only female student in class. But over time, I found that male students were not as bad as I thought. They respected me, we became good friends, and they often helped me out when working in the workshop. There are many things that made me happy while studying at Polmed. One of them was when I got the opportunity to board a free plane ride to Batam to take part in the 2016 National Polytechnic English Olympic (NPEO). Becoming the first winner at NPEO 2016 was an achievement I had never imagined. That same year I also won the Speech Competition in the 2016 National Science Festival. I won first place again in NPEO 2018 in Bandung, West Java. My principle is not to be arrogant when winning and not to be discouraged when losing. While in Polmed, I was elected as Head of English Public Speaking Student Activity Unit with hundreds of students who have an interest in English and its competition activities. I graduated in October 2018 with a cumulative cumulative grade point average of 3.05. Next, I hope to obtain a scholarship to study in Taipei,China for the Double Degree Program. Beneficiary 2: Lactation Facilities Ms. Bertha Bintari Wahyujati, Lecturer, Mechatronics Polytechnic of Sanata Dharma Initially, nursing female employees did not have a place to store their breast milk. Some had to leave the breast milk in the Pharmacy Laboratory refrigerator in the building next to the campus. You can imagine the contents of the pharmaceutical laboratory refrigerator. It often contains pharmaceutical drug formulas, sometimes even rat blood is stored inside. That concern turned into a serious conversation carried out after a campus event that gathered all staff and lecturers in the meeting room. The discussion led to support from other co-workers in the form of money collections. Almost everyone donated when they learned that the refrigerator would function as a storage area for breast milk. Finally, a total of Rp2,850,000 was collected. A refrigerator was bought at a price of Rp2,600,000. Now facilities for breastfeeding mothers are much improved because the campus has provided lactation rooms. We can learn valuable lesson here. Amid our busy schedule, it turns out that we still have empathy and care for our colleagues, namely mothers who desperately need storage for breast milk. The number of our colleagues like that is indeed small. However, most of us who do not need storage for breast milk, still support it wholeheartedly. That is one of the realizations of gender awareness. Trivial but very meaningful—and, the refrigerator is a marker of our togetherness. Beneficiary 3: Ms. Hafsah Nirwana, Lecturer, Ujung Pandang State Polytechnic (PNUP) The committee said it was the first time that a woman was interested and had the courage to become a candidate for Ujung Pandang State Polytechnic (PNUP) director. I knew that there were some who did not expect PNUP to be led by a woman. I learned that when I got information that there was a slogan "if there is man, why should a woman be chosen." I was not afraid of this slogan. On the contrary, it increased my enthusiasm to keep fighting because my participation in the election was motivated by gender mainstreaming, to build awareness in the academic community about equal rights between men and women. Source: Asian Development Bank.

Appendix 13 59

F. Lessons and Recommendations

10. Success factors. The political will from the polytechnic directors and other high-ranking officials and management, in the form of Commitment on Gender Mainstreaming at the PEDP Polytechnics in Indonesia signed by 29 Polytechnics Directors, and gender mainstreaming strategy at each polytechnic are the crucial factors of success for GAP implementation and achievements. In project context, political will is manifested among others into commitment to ensure the availability of sex-disaggregated data for various information. Prior to this, many data in participating polytechnics were not sex disaggregated. After completion of the PEDP, three polytechnics—State Polytechnic Batam, State Polytechnic Manado and State Polytechnic Shipbuilding Surabaya received the International Labour Organization’s support under Skills Building Capacity in Maritime Sector (2020–2023), which incorporates gender strategy, including issues on sexual harassment. 11. Challenges. Gender was a relatively new concept for all the polytechnics in PEDP. Meanwhile the implementation of GAP is mandatory. The appointment of gender focal point in each polytechnic, and Network of Gender Focal Points across polytechnics were excellent strategies to introduce and institutionalize gender. The project provided capacity building support through gender awareness and training on gender-sensitive analysis, technical assistance in the development of gender mainstreaming strategy, and mentoring of Gender Focal Points and Quality Assurance Staff in collecting sex-disaggregated data.

12. Recommendations. Based on discussions with several polytechnics, the summary of recommendations is given below:

(i) The process of mainstreaming gender into in polytechnics has started. There are project legacies that can potentially be continued and improved in the future. This process needs support from many parties, not only at polytechnics internally, but also from the most relevant institutions, such as the Ministry of Education. The gender policy for polytechnics is strongly needed. Other institutions, such as, the Ministry of Women Empowerment and Child Protection and Ministry of National Development Planning should also be involved.

(ii) The commitment on gender mainstreaming as stated in “Commitment on Gender Mainstreaming at the PEDP Polytechnics in Indonesia” declared by 29 Polytechnics Directors in November 2017 should be sustained.

(iii) The National Accreditation Board for High Education (BANPT) is a strategic institution to mainstream gender into polytechnics. It can be done by integrating gender aspects in documents and forms that are used for evaluation. Thus, all polytechnics should follow the process with proper gender considerations. The status of accreditation is very important for polytechnics.

(iv) The existing gender network must be maintained and strengthened in the future by an entity. It should be under the Ministry of Education in coordination with the Ministry of Women’s Empowerment and Child Protection that are technically responsible for this issue.

60 Appendix 14

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Product Schedule Para No.

Description Status of

Compliance

Loan 2928

Schedule 5

1 Implementation Arrangement: Complied with.

The Borrower and the Project Executing Agency shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Borrower and ADB. In the event of any discrepancy between the PAM and this Loan Agreement, the provisions of this Loan Agreement shall prevail.

Loan 2928

Section 4. 1 The Borrower shall cause the Project to be carried out with due diligence and efficiency and in conformity with sound applicable technical, financial, business, and development practices.

Complied with.

Loan 2928

Section 4 1 In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement.

Complied with.

Loan 2928

Schedule 5

2 The Borrower shall ensure that the Project does not have any environmental, indigenous peoples or involuntary resettlement impacts, all within the meaning of ADB's Safeguard Policy Statement (2009). In the event that the Project does have any such impact, the Borrower shall take all steps required to ensure that the Project complies with the applicable laws and regulations of the Borrower and with ADB's Safeguard Policy Statement.

Complied with.

Loan 2928

Section 4 2 The Borrowed shall make available, promptly as needed and on terms and conditions acceptable to ADB, the funds, facilities, services, land and other resources, as required, in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of the Project facilities

Complied with; however, frequent budget revisions sometime hinder timely implementation of project activities.

Loan 2928

Schedule 5

3 The Borrower shall ensure that no proceeds of the Loan are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the ADB's Safeguard Policy Statement.

Complied with.

Loan 2928

Section 4 3 Whenever applicable, in the carrying out of the Project, the Borrower shall cause competent and qualified consultants and contractors, acceptable to ADB to be employed to an extent and upon terms and conditions satisfactory to the Borrower and ADB.

Complied with.

Appendix 14 61

Product Schedule Para No.

Description Status of

Compliance

Loan 2928

Section 4 3 The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Borrower and ADB, as applicable. The Borrower shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

Complied with.

Loan 2928

Schedule 5

4 Gender and Development: Complied with.

The Borrower shall ensure that the Gender Action Plan is fully implemented and that all Project activities are designed and implemented in accordance with ADB's Policy on Gender and Development (1998). The Borrower shall in particular ensure: (a) 30% of the short courses developed through the Project target the study programs that benefit female; (b) at least 20% of the recipients of the NSF scholarships shall be female; (c) 30% of the internships or industry placements in the Priority Sectors are female; (d) 20% of the management and staff in the Project Executing Agency and the Selected Polytechnics Institutions who are trained on technical and management skills to meet industry standards shall be female; and (e) all monitoring and evaluation data are disaggregated by gender.

Loan 2928

Section 4 4 The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.

Complied with.

Loan 2928

Schedule 5

5 National Skills Fund: Complied with.

Within 6 months of the Effective Date, the Borrower shall have (a) established the NSF which shall be used to finance skills development initiatives that are aligned with the objectives of the MP3EI; and (b) adopted the operational guidelines of the NSF to the satisfaction of ADB.

Loan 2928

Section 4 5 ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB's website.

Complied with.

62 Appendix 14

Product Schedule Para No.

Description Status of

Compliance

Loan 2928

Section 4 5 The Borrower shall (i) maintain separate accounts and records for the Project; (ii) prepare annual financial statements for the Project in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for the imprest account(s) and statement of expenditures) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request.

Complied with. Final APFS is still under preparation due to the changes in BPK’s internal arrangement following the merging of executing agency from MORTHE to MOEC. APFS FY 2015-2019 did not include additional opinion. ADB and BPK are working on an updated terms of reference to ensure that additional opinion is part of APFS, and the wording of opinion complies with ADB’s requirements.

Loan 2928

Section 4 5 The Borrower shall enable ADB, upon ADB's request, to discuss the financial statements for the Project and the Borrower's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower shall otherwise agree.

Complied with.

Loan 2928

Section 4 6 The Borrower shall enable ADB's representatives to review the Project, inspect the Goods and Works, and obtain any relevant records and documents.

Complied with.

6 Review Committee:

Appendix 14 63

Product Schedule Para No.

Description Status of

Compliance

Loan 2928

Schedule 5

Within 3 months of the Effective Date, the Borrower shall have established the Review Committee to assess and recommend NSF proposals to the Project Executing Agency for funding. The Review Committee shall consist of representatives and technical experts from the Priority Sectors.

Complied with; but it took longer time for the polytechnic to prepare proposal and for the committee to review and evaluate proposal. There was reiterative process.

Loan 2928

Schedule 5

6 Review Committee: Complied with.

The Borrower shall ensure that each member of the Review Committee (a) ensure that there is no pecuniary interest or official responsibility between the member and a training provider involved in the Project or in receipt of project funding; (b) shall use information shared with the Review Committee in relation to its advisory role only for the intended purpose and not shared, distributed or sold the information to another third party; and (c) shall sign a declaration and declare any potential conflicts of interest in relation to their performance in the Review Committee. The Borrower shall further ensure that the Review Committee members shall not: (d) share or distribute NSF proposals with any person or organization; (e) discuss or distribute materials pertaining to the activities of the Review Committee or the NSF without written approval from the Project director; (f) share or distribute cost estimates other than those published by the Project Executing Agency concerning assessment, tuition, scholarships, accreditation or certification of polytechnic study programs; and (g) participate in the review or appraisal of a funding proposal related to an affiliated or associated party.

Loan 2928

Section 4 7 The Borrower shall ensure that any facilities relevant to the Project are operated, maintained, and repaired in accordance with sound applicable technical, financial, business, development, operational and maintenance practices.

Complied with.

Loan 2928

Schedule 5

8 Governance and Anticorruption: Complied with.

The Borrower and the Project Executing Agency shall (a) comply with ADB's Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practice relating to the Project; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation.

64 Appendix 14

Product Schedule Para No.

Description Status of

Compliance

Loan 2928

Schedule 5

9 Governance and Anticorruption: Complied with.

The Borrower and the Project Executing Agency shall ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of the Project Executing Agency, the Selected Polytechnics Institutions and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

Loan 2928

Schedule 5

10 Governance and Anticorruption: Complied with.

The Borrower shall ensure that each Selected Polytechnic Institution shall establish and strengthen the roles and functions of the internal audit unit in accordance with Government Regulation No. 60 Year 2008.

Loan 2928

National Skills Fund: Complied with.

Within 6 months of the Effective Date, the Borrower shall have (a) established the NSF which shall be used to finance skills development initiatives that are aligned with the objectives of the MP3EI; and (b) adopted the operational guidelines of the NSF to the satisfaction of ADB.

Source: Asian Development Bank.

Appendix 15 65

ECONOMIC REEVALUATION 1. The cost-benefit analysis conducted at appraisal (report and recommendation of the President, RRP) yielded an estimated economic internal rate of return (EIRR) of 17.2%. Neither the RRP nor its linked documents provide details on the methodology used at appraisal or the parameters. As such, it is difficult to replicate that methodology for this reevaluation and to explain the difference in the EIRR at appraisal and completion. 2. The reevaluation uses actual data in crucial areas and also proxy estimates in other areas to complete the exercise. Proxies are used because although the required data are available in Indonesia, they were not readily usable within the limited time and resources for completing this reevaluation. The estimates are likely underestimate the full benefits, as they exclude the wage gains of informally employed graduates and take a conservative approach to projecting enrollment.

3. The analysis includes the Asian Development Bank (ADB) loan, a grant from the Government of Canada, and the Government of Indonesia’s contribution to the project. These combined capital investments (costs) are compared with estimated benefits arising out of jobs obtained by technical and vocational education and training (TVET) graduates in formal employment. Estimated net present value (NPV) at the discount rate of 6% is $14.22 million and the EIRR is estimated at 8.79%. The return is above the current hurdle rate of 6% for education projects but is below the 12% hurdle in use at the time of appraisal in 2012.

4. Project polytechnic enrollment and graduates. The RRP estimated that project investments will increase the number of annual graduates from polytechnics and will benefit 48,000 graduates with improved quality of skills, and better access to formal jobs with higher earnings. The economic reevaluation follows a similar argument and assesses the resulting net economic benefits from project investments. It examines enhanced economic value for the polytechnic graduates (focusing on D3 level) from 2016 to 2035.1

5. The data indicate that the actual output of 34 project polytechnic graduates (D3 level) increased from 15,444 in 2012 to 31,128 in 2019, nearly doubling the number of graduates, an annual increase of 10.5% per annum. However, beyond the project polytechnics enrolments in TVET tertiary education overall increased much faster. 2 The output of graduates in project polytechnics is expected to continue increasing although in this exercise it is conservatively projected to grow at a lower rate than the past observed rate. The number of graduates is projected to increase from the post completion level of 31,128 (2019) to 121,513 (2035), i.e., at the rate of about 8.89% per year. The projected growth rate of graduates is considered reasonable. Polytechnics are facing pressure for admission due to growing demand for skills as well as due to Indonesia’s success in providing universal access to schooling from grades 1–12.

6. Employment. Most of the polytechnic graduates are expected to seek employment in better-paying formal jobs in the organized sector, while a small number of these graduates are expected to continue studying further, engage in self-employment or remain longer in transition in search of jobs. The economic reevaluation assumes that about 70% of female graduates and 85% of male graduates will find jobs in the formal sector. Economic benefits are estimated only for graduates expected to obtain jobs in the formal sector.

1 This is linked to the 3-year course (D3). If the project benefits were to reckon one more year later, i.e., from 2015, the

base value of EIRR changes only marginally from 8.79% to 8.46%. 2 During 2013-2019, enrollment in all polytechnics of the country (300) increased at an annual rate of 16.7% per annum.

66 Appendix 15

7. Earnings. Data on wage premium for different industrial sectors and occupational groups by educational levels are available from SAKERNAS (i.e., the labor force survey). This exercise uses the observed wage differential between earnings of a polytechnic graduate and a SMK (Sekolah Menengah Kejuruan [vocational high school]) graduate to estimate economic benefits. At appraisal, the project assumed a differential of Rp2.0 million per graduate per month, but the differential used in this reevaluation exercise is much lower level at Rp1.27 million for female graduates, and Rp1.41 million for male graduates.3

8. The earning differentials based on SAKERNAS data (and used in the calculations for this completion report) are substantially lower than those implied by entry level wage data reported by polytechnics visited by ADB as part of the project completion review mission. Salary data gathered during the mission ranged from Rp2.2 million per month on the lower end to Rp6.8 million on the higher side, with a mean value of Rp4.21 million, as shown in Table A.15.1. Relatively low wage levels were reported for graduates in agriculture and rural sectors while the higher entry level wages were noted for graduates in engineering, information and communication technology, finance, and international corporate sectors. The gathered data was not used because it could not be validated. Further, no increase in earning differential over time is envisaged in estimating economic benefits for the period 2020–2034.

Table A15.1 Entry Level Wages for Graduates for Visited Polytechnics

Project Polytechnics Average wage

(Rp, millions per month) Polytechnic Agriculture Kupang 2.2 Polytechnic Pontianak 2.6 Polytechnic Jember 3.2 Polytechnic Ujung Pandang 3.4 Polytechnic Bali 3.4 Polytechnic Bandung 4.0 Polytechnic Manado 4.0 Polytechnic Samarinda 4.5 Polytechnic LPP 4.9 Polytechnic Batam 5.0 Polytechnic ATMI 5.1 Polytechnic Caltex Riau 5.6 Polytechnic Jakarta 6.8 Mean value 4.21

9. Fees and indirect costs of education. As 28 of the 34 project institutions are public polytechnics, the requisite fee estimates are low. It is estimated that fees and other direct expenses are Rp150,000 per pupil per month. Indirect expenses accounting for transportation and other overheads are estimated at Rp150,000 for female graduates per pupil per month and Rp180,000 per month for male graduates.4 Actual expenses vary as per the rural and urban location of the polytechnic and the course in which the student is enrolled. Foregone earnings

3 The data gathered by the review mission has a limited number of observations, but it is consistent with long-term

evidence as presented in an International Labour Organization (ILO) study using labor surveys SAKERNAS data for 2006 and 2016. The study collated, processed, and summarized the finding in 2017. ILO. 2017. Indonesia Jobs Outlook 2017: Harnessing technology for growth and job creation. Jakarta. Table 6, p. 20.

4 These assumptions and proxy estimates are broadly in consonance with other estimates related to rates of return in Indonesia although the latter are based on elaborate and more rigorous research findings.

Appendix 15 67

during studies in polytechnics are estimated at 30% for female and 35% for male graduates of the observed earning wages for SMK graduates.

10. Gender equity. When the project was approved in 2012, female graduates from the 34 polytechnics were 5,705 and much lower than that of male graduates (9,739). During project implementation, the gap started closing rapidly. The annual increase in female graduates (14.4%) outstripped that of male graduates (7.8%) with the result that in 2019 polytechnics produced 14,600 female graduates in comparison to 16,528 male graduates. Thus, the growing gender equity in polytechnics coincides with the project period. Projecting output of graduates forward up to 2035, it is expected that barring major structural changes these polytechnics will be producing more female graduates (75,062) than male graduates (46,451), although the future rate of growth is expected to lessen slightly for both females and males. The exercise uses 10.8% growth rate for female graduates during the projected period (in comparison to the observed rate of growth of 14.4%) and 6.7% growth rate of male graduates (in comparison to the observed rate of 7.8%). 11. Moreover, it is understood that female students will continue to be enrolled in more diverse study programs than the male students; the latter continuing to prefer enrolling in engineering, manufacturing, mining, and information and communication technology and its applications. This choice of study programs naturally influences graduates’ prospects in terms of the nature of jobs, types of employing organizations and wage earnings. The likelihood of access to formal sector jobs is expected to vary across genders. 12. Counterfactual. In the counterfactual situation, there is a need to examine what would have happened if the polytechnic education did not expand under the project. Without the opportunity to graduate from polytechnics, many of the students would have stopped schooling after senior secondary school (whether in vocational or academic streams). A smaller proportion of students would have joined universities. The influence of expanding polytechnics’ capacity on enrolment, access to jobs and earning differentials can be expected to be different depending upon how the counterfactual is envisaged. The economic reevaluation is based on the understanding that the Polytechnic Education Development Project (PEDP) opened up more opportunities for skill upgrading, and improved access to formal jobs at higher levels of earnings. More importantly, it was instrumental in improving access of female students to polytechnic. It improved their access to better jobs and increased opportunities for higher earnings. Thus, it reduced the gender gap in wages, especially for polytechnic graduates. The “without project” and “with project” scenarios are shown in Table A15.2.

Table A15.2 "Without Project" and "With Project" Scenarios

No. Without project With project 1. Tertiary TVET perceived as inferior option for

pursuing higher education Information-education-campaigns in support of polytechnic education

2. Uneven enrolment demand across engineering, ICT, and management tertiary education

Opportunities for expanded and balanced development of polytechnics across sectors, and geographic regions as per the national development needs

3. Poor preparation and training of technical teachers

In-country as well as overseas training and higher education opportunities for technical teachers

4. Limited opportunities for female students in access to polytechnics

Incentives provided to female students for enrolling in polytechnics across all disciplines

5. Poor condition of laboratories, facilities, and physical campus

Establishment of refurbished labs and construction of improved physical facilities

68 Appendix 15

No. Without project With project 6. Low level of government support to private

polytechnics Extended technical, financial and know-how support to private polytechnics

7. Absence of inter-active relationship with employers, local industries, and businesses

Forged linkages with industries and business partners in preparing courses, curriculum and setting testing standards

8. Weak vertical linkages with vocational school education (SMKs)

Established linkages within vocational education system across schools and polytechnics

9. Limited capability in new ICT related disciplines and their application in industries and businesses

Introduced new ICT-based technologies in teaching learning in pursuit of Industry 4.0

10. Limited involvement in teaching-learning activities related environmental sustainability

Greater awareness and practice in support of sustainable environment across campuses and communities

ICT = information and communication technology, TVET = technical and vocational education and training, SMK = Sekolah Menengah Kejuruan (secondary vocational school). Source: Asian Development Bank.

13. Recurrent and other costs. Normally, it is possible to distinguish between capital expenditure under a project, and its recurrent expenditure. However, about 50% of the funds under the project were transferred in a National Skills Fund which was then used to allocate resources to polytechnics for use according to their polytechnic development plans. The institution-level breakdown of capital and recurrent expenditure is not available; hence, the assessment of recurrent expenditure has not been carried out. Notwithstanding, this exercise adjusted project investments for rates and taxes in line with the RRP which estimated recurrent expenditure to be only 1% of the total project investments. Similarly, the economic analysis makes a provision for operations and maintenance (O&M) for the equipment procured under PEDP annually from 2024 to 2035 in an increasing five-year cycle.

14. Economic benefit stream. Taking all these items into consideration yields an NPV of $14.22 million (at a rate of 6%) and an EIRR of 8.79%.

15. Sensitivity analysis. Estimates of benefits are sensitive to enrollment increases and gender composition of enrollments, because female and male earning patterns vary significantly. Similarly, estimates are sensitive to the students’ response to the counterfactual situation if the polytechnic option was not available as well as to foregone earnings. As all these features work through the earning differentials, the estimates are most sensitive to the likelihood of access to jobs in formal employment. The magnitude of these responses to the changes in the parameters are shown in the Table A15.3. The table summarizes the impact of a decline on the number of graduates, employment, and their combined effects.

Table A15.3 Changes in economic internal rate of return in response to possible changes in key variables

Base case scenario (EIRR, %) 8.79 Scenarios EIRR (%)

(5% decrease in the variable)

EIRR (%) (10% decrease in

the variable) Number of graduates 8.31 7.82 Formal employment of graduates 6.56 4.10

Appendix 15 69

Change in graduates enrolled and formal employment Change in foregone earnings Change in proportion of females in formal employment Change in proportion of males in formal employment

6.06 11.0 7.55 7.84

3.04 13.1 6.24 6.87

EIRR (%)

Same level of formal employment (80%) across genders 10.98

Same level of indirect expenditure (0.18) across genders 7.38

Same level of formal employment as well as indirect expenditure across genders

9.72

EIRR = economic internal rate of return. Source: Asian Development Bank.

70 Appendix 15

( ) = negative, ADB = Asian Development Bank, EIRR = economic internal rate of return, NPV = net present value, O&M = operation and maintenance. Source: Asian Development Bank.

Table A15.4 Summary Economic Reevaluation

Year

ADB Investment ($, million)

Total adjusted

investment ($, million)

O&M amount ($ million)

Polytechnic graduates –

female (Number)

Net female earning

differential (Rp)

Polytechnic graduates

male (Number)

Net male earning

differential (Rp)

Total net earning

differential ($, million)

Net benefit stream

($, million) 1 2 3 4 5 6 7 8 9 10

2012 0 0 0.00 5,705 1,311 9,739 1,307 0 0 2013 0 0 0.00 6,510 1,497 10,849 1,456 0 0 2014 1.51 1.61 0.00 7,566 1,739 12,199 1,637 0 (1.613) 2015 7.14 7.85 0.00 8,978 2,064 13,281 1,782 0 (7.846) 2016 15.33 16.77 0.00 10,800 2,483 14,951 2,006 53,865 (12.857) 2017 9.25 10.47 0.00 11,768 2,705 15,172 2,036 56,891 (6.338) 2018 6.37 8.19 0.00 13,531 3,111 15,926 2,137 62,969 (3.614) 2019 24.74 27.58 0.00 14,600 3,356 16,528 2,218 66,887 (22.721) 2020 4.3 4.82 0.00 16,173 3,718 17,631 2,366 73,002 0.484 2021 0 0.00 17,916 4,119 18,807 2,523 79,703 5.787 2022 0 0.00 19,846 4,562 20,062 2,692 87,048 6.32 2023 0 0.00 21,985 5,054 21,400 2,871 95,102 6.905 2024 0 1.93 24,354 5,598 22,828 3,063 103,936 5.615 2025 0 1.93 26,978 6,202 24,351 3,267 113,626 6.318 2026 0 1.93 29,884 6,870 25,975 3,485 124,261 7.09 2027 0 1.93 33,105 7,610 27,708 3,718 135,934 7.938 2028 0 1.93 36,672 8,430 29,557 3,966 148,750 8.869 2029 0 2.70 40,623 9,338 31,528 4,230 162,825 9.118 2030 0 2.70 45,000 10,345 33,632 4,513 178,286 10.24 2031 0 2.70 49,849 11,459 35,876 4,814 195,275 11.474 2032 0 2.70 55,220 12,694 38,269 5,135 213,945 12.829 2033 0 2.70 61,170 14,062 40,822 5,477 234,469 14.32 2034 0 3.86 67,761 15,577 43,545 5,843 257,036 14.799 2035 3.86 75,062 17,255 46,451 6,232 281,855 16.601 Total

(nominal value) 68.63 77.28 30.91

89.72

EIRR 8.79% NPV 14.22

Appendix 16 71

GRANT 0343-INO SUPPORT BY THE GOVERNMENT OF CANADA1 POLYTECHNIC EDUCATION DEVELOPMENT PROJECT

A. Introduction

1. In March 2013, the Government of Canada offered grant assistance to Indonesia in the amount of Can$5.0 million (equivalent to $4.95 million) 2 for the Polytechnic Education Development Project (PEDP). The main objective of the grant financing was calibrated with PEDP’s objective, and it was to be administered by the Asian Development Bank (ADB) in parallel with PEDP loan. The grant agreement between Government of Indonesia and ADB was signed in December 2013 and became effective on February 2014, about a year after the PEDP started implementation. The grant was expected to close in June 2018. However, synchronizing with the ADB loan, it was extended on the request of the Government of Indonesia by 18 months. Both the loan and the grant closed on December 2019. 2. The breakdown of grants is shown in Table A16.1. The estimated available resources for the PEDP increased from $91.7 million to $96.65 million. As the additional financing was agreed after the Board’s approval of the project loan, inclusion of grant resources under the project followed the standard ADB practice of an extensive re-assessment of the project components, including a review of its design and monitoring framework, to establish PEDP’s eligibility and its performance for additional financing.3 The review found that the PEDP fulfilled the criteria of eligibility and performance, as such Management approved the inclusion of additional financial resources through the grant. 3. The enhanced resources increased the scope and depth of many project activities and had a three-pronged effect. It supplemented the provision of financial resource for PEDP activities that were earmarked for financing by the Government of Indonesia. The grant also put additional resources in some activities that were identified to be financed by ADB. Further, during implementation of the project the government’s policy emphases had identified new priority areas for polytechnics. The grant mobilized internal savings to undertake some of these new activities that were not in the scope of project as per the RRP, e.g., a study visit to Canada, activities related to Industry 4.0 including Artificial Intelligence, Big Data Analytics. cyber security and robotics Thus, the grant supported PEDP’s thrusts in three areas—activities in the realm of the government, activities financed through ADB loan and the new needs and emerging priorities of the technical education subsector. This is shown in Table A16.

1 Based on a detailed report on the grant prepared for Ministry of Education and Culture, Director General of Higher

Education, Polytechnic Education Development Project, Grant 0343-INO (EF), Final Report, May 2020. 2 At the time of approval of the grant, $1 was equivalent to Can$0.95, but by project completion it had depreciated to

about Can$0.72. 3 ADB’s operational manual (OM) Section H5 (8 October 2018) details these conditions. Eligibility criteria states that

additional financing may only support projects that (i) remain technically feasible, economically viable, and financially sound; (ii) are accorded high priority by the government; (iii) consistent with the project’s development objectives; and (iv) are consistent with the country partnership strategy. The following measures are to be used in determining whether an ongoing project is performing well: (i) the delivery of expected outputs; (ii) satisfactory implementation progress, (iii) satisfactory compliance with safeguard policy requirements, (iv) successful management of risks, and (v) a rating of highly satisfactory or satisfactory in the project performance ratings.

72 Appendix 16

Table A16 Grant Financing of PEDP Activities

No. Category Grant Allocation ($ millions)

Actual Costs ($ millions)

1 Capacity development 1.0 0.85 2 Consulting services 1.15 1.17 3 Program and materials development 0.5 0.00 4 Studies and workshops 1.0 0.91 5 Social marketing and advocacy 1.0 1.18 6 Miscellaneous 0.30 0.72 Total 4.95 4.84

PEDP = Polytechnic Education Development Project. Source: Asian Development Bank.

B. Grant Support for the Areas Earmarked for the Government of Indonesia

4. Capacity development. At appraisal capacity development was to be entirely financed by the government in the amount of $6.5 million. The grant contributed $1 million to this amount and provided support to capacity development. Fourteen activities were completed under grant financing. These included short-term training and internship in Canadian institutions, leadership and management training for polytechnic’s directors and senior staff, training on implementation of recognition of prior learning (RPL) and developing and strengthening master’s degree program in applied sciences. These capacity development activities benefited more than 470 polytechnic leaders and staff, of which 45% trainees were women. Participants acknowledged that they applied the strategic planning methods while preparing polytechnics’ development plans. C. Grant Support for the Areas Funded by ADB’s Loan Activities 5. Consulting services. At appraisal, ADB had earmarked an amount of $2.2 million for consulting services. The grant increased this allocation by $1.15 million to a total of $3.35 million. The grant financed four major activities under consulting services. These included: (i) establishing and strengthening of the Center of Technology (COT); (ii) undertaking carbon footprint study and development of green campus; (iii) laboratory safety and management training; and (iv) preparing documentation and books on Success Story of PEDP, Center of Technology in Polytechnics and The Journey of Gender Mainstreaming in Polytechnics. About 435 polytechnic staff participated in workshops and training provided by the consultants. 6. Studies and workshops, including program development. The grant increased ADB financing of studies, workshops and program and study materials by $0.5 million to a total of $2.4 million. Under the studies and workshops, the project implemented 10 major activities. These included: (i) two events for developing RPL tools and manuals; (ii) three COT related events on planning, implementation, dissemination; and a workshop on tourism study program. Overall, 626 staff from polytechnics and MORTHE participated in the workshops, of which 35% were female. This strengthened qualitative improvements in the preparation of curriculum and the way it is transacted in the classroom, especially to meet the needs of industry and business partners. 7. Social marketing. The grant increased ADB financing of social marketing for vocation education by $1 million to a total of $1.55 million. The category included nine activities. These comprised (i) engaging a communication expert to design campaign strategy, (ii) hiring a photographer for quality pictures, (iii) conducting outdoor advertising, (iv) having media placement, (v) two events related to production of branding materials, (vi) organizing an international conference in Malang and exhibition, (vii) assisting in PEDP documentation, and

Appendix 16 73

(viii) evaluating social marketing strategy. Word-of-mouth was identified as a key to strengthening the credibility and goodwill of vocational higher education in the community and the world of work. The consultants on book writing have produced three books that have been printed and distributed to stakeholders. It also introduced green tourism villages and encouraged Bali Polytechnic to take initiative in this regard. D. Grant support for new activities. 8. Industry 4.0. The grant undertook a number of new activities related to Industry 4.0 technologies by drawing upon internal savings under different grant budget heads and re-allocating the available resources more effectively. The emphasis was on responding to the emerging themes in the development policies of Indonesia, which had an important interface with technical higher education including polytechnics. 4 These grant activities targeted emerging knowledge and skills development activities for polytechnic faculty as Artificial Intelligence (AI), Big Data Analytics, cyber security, robotics, teaching methods using information technology, etc. The awareness about these new tools and technologies benefitted participants in improving and developing new curriculum in polytechnic programs. 9. Eighteen participants undertook an examination and qualified for an internationally recognized certificate from Big Data Foundation. The initiatives under grant also contributed to the development of new master’s degree programs in applied technology introduced in 10 polytechnics. This is a long-term strategy as these programs are expected to support quality improvement of polytechnic teachers. In this sense, the study visits to Canada served as a catalyst for introducing changes in Indonesian polytechnics. These initiatives contributed to upgrading of 25 study programs and their accreditation improved either from C to B or from B to A. The new activities introduced cutting-edge information and imbued PEDP with innovative activities. E. Other Supported Activities 10. The grant also supported cross-cutting issues and safeguards related to the project. Of these, gender mainstreaming and environment are detailed below. 11. Gender mainstreaming program. The gender mainstreaming received primary attention under the grant, which actively supported PEDP’s gender action plan (GAP). A national seminar on gender mainstreaming was organized which reinforced PEDP’s approach to gender issues. Through the capacity building workshops, PEDP provided guidance and support to the gender focal points in project polytechnics and facilitated in the implementation of GAP. Training on gender mainstreaming program resulted in the stronger commitment and strengthened gender focal points in polytechnics to address gender issues in respective polytechnics. As a result, the grant report endorsed and re-affirmed achievement of 82% of the targets in GAP implementation as per the ADB’s gender assessment approach.

12. Environment. The grant also took an active stance in supporting environmental safeguards under PEDP. It provided consulting services on carbon footprint of polytechnics which developed tools for the energy audit of polytechnics in their campuses. It trained the polytechnic staff on how to conserve energy. Recognizing the importance of tourism sector in Indonesia, it introduced measures focused on “green tourism.” The growing awareness about environment also led to other polytechnics pursuing improved methods of managing water resources and coal-

4 ADB. 2020. Innovate Indonesia -- Unlocking growth through technological transformation, Ministry of Finance

(Republic of Indonesia), Manila. March

74 Appendix 16

energy more effectively. Such activities helped polytechnics to address environmental considerations in sustainable manner. F. Summing Up

13. The grant, notably, focused on strengthening management of higher vocational subsector and polytechnics in Indonesia. Linking with project objectives, the grant supported both institutional development of polytechnics as well as improving the subsector management. For example, it emphasized on improving laboratory management, and shared know-how with polytechnics about how to prepare curriculum in partnership with industries and business partners. The latter was linked with Output 1 and Output 3. Besides, it endorsed effective gender mainstreaming of PEDP and helped to implement GAP, which strengthened the equity and inclusive character of the project (Output 2). In Tourism, the grant supported “green tourism” efforts of Indonesia. The study visits to Canada exposed participants to the Canadian good practices in vocational training and community colleges. Exposing Indonesian polytechnics to new Industry 4.0 technologies imbued innovative and introduced futuristic features in PEDP. As these activities were completely in consonance with the project and built-further on its intended outcomes, the grant assistance resulted in strengthening of the project design and helped it to achieve its objectives. 14. In summary, the PEDP benefitted much by both additional financing as well as the fact that it was sourced from Canada which is well-known for its leadership in technical and vocational higher education as demonstrated by its community colleges. Grant financing selectively strengthened different aspects of the project, including responding to the emerging policy emphases in Indonesia vis-a-vis Industry 4.0 technologies. As such, it improved PEDP’s design and helped to keep the project relevant. The Grant strengthened institutional and sectorwide management of higher technical education and helped PEDP achieve its outcome and outputs. Steps in reorienting the curriculum in line with industry and business partners’ needs combined with the improved image of vocational education through social media are likely to enhance the number of students in polytechnics and increase ensuing benefits to students and employers alike. The increased emphasis on equality and inclusiveness combined with institutional development augers well for TVET’s likely sustainability in Indonesia.