The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) National Affordable Housing Program (P154948) EAST ASIA AND PACIFIC | Indonesia | Urban, Resilience and Land Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 6 | ARCHIVED on 12-Dec-2019 | ISR39175 | Implementing Agencies: Ministry of Public Works and Housing, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 17-Mar-2017 Effectiveness Date: 24-Jan-2018 Planned Mid Term Review Date: 01-Nov-2019 Actual Mid-Term Review Date: 05-Aug-2019 Original Closing Date: 31-Mar-2021 Revised Closing Date: 31-Mar-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the Program is to improve access to affordable housing for lower income households Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Mortgage-Linked Down Payment Assistance (Bantuan Pembiayaan Perumahan Berbasis Tabungan/BP2BT):(Cost $215.00 M) Component 2: Home Improvement Assistance (Bantuan Stimulan Perumahan Swadaya/BSPS):(Cost $215.00 M) Component 3: Technical Assistance for Housing Policy Reform:(Cost $20.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project is presently being implemented with some delays, especially with the mortgage-linked down payment assistance (BP2BT), which is expected to pick-up starting in December 2019. The project has delivered 82,163 homes under the Home Improvement Assistance (Bantuan Stimulan Perumahan Swadaya, BSPS) in addition to the 292,814 units funded by the Government under the Anggaran Pendapatan dan Belanja Negara (APBN). Both BP2BT and BSPS schemes face poor quality-built outputs which are being addressed through a quality improvement, assurance and control mechanism. Activities to support the housing policy reform and strengthening of the enabling-environment have been delayed due to procurement. 12/12/2019 Page 1 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) However, two activities have been commissioned and are due to start by end of 2019 and two additional activities are expected to begin by Q2 2020. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial High High Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To improve access to affordable housing for lower income households IN00762796 ►Number of targeted households assisted by the Program for affordable house ownership (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 31.00 126,000.00 Date 03-Oct-2016 15-May-2019 15-Nov-2019 31-Mar-2021 This project is underachieving its original mid-term target of 47,000 (households) to be assisted for house ownership. The Project managed to deliver 28 additional units of assistance since the last mission in April Comments: 2019 as verified by the BP2BT Project Management. IN00762797 ►Number of targeted households received house improvement/ reconstruction stimulant through advanced system of Home Improvement Assistance Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 325,000.00 375,427.00 450,000.00 12/12/2019 Page 2 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 This project is overachieving its mid-term target of 275,000 households as verified by the BSPS Project Management and cross-checked to the BSPS database, supported by the delivery of assistance financed Comments: by the Government’s own funds. Intermediate Results Indicators by Components Component 1: Mortgage-Linked Down Payment Assistance (Bantuan Pembiayaan Perumahan Berbasis Tabungan/BP2BT) IN00762799 ►Percentage of Program beneficiaries in bottom 60 percent of the income distribution (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 80.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project is overachieving the mid-term and end-of-project targets. All beneficiaries of BP2BT have Comments: been verified and are meeting eligibility criteria as verified by the BP2BT Project Management. IN00762802 ►Percentage of Program beneficiaries from non-salaried sector (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 To date, the Project has not delivered any units to the non-salaried sector, which is currently an underserved segment. The mortgage risks associated with serving the informal income sector have yet to Comments: be addressed, while the relaxation of the program’s savings requirement (including a reduction in both the savings amount and duration required) will further reduce the program’s ability to serve this segment. IN00762805 ►Number of participating lenders with volume >5 percent of BP2BT annual Program volume (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 4.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project is underachieving the mid-term target of 3. Given the slow disbursement, only the top two Comments: lenders have participated (BTN and Artha Graha) as verified by the BP2BT Project Management. IN00762808 ►Amount of BP2BT assistance linked mortgage finance leveraged (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23,571.00 35,168.00 665,000,000.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 12/12/2019 Page 3 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) This project is underachieving the mid-term target of US$248,000. The current result has been verified by Comments: the BP2BT Project Management. IN00762811 ►Percentage of beneficiaries satisfied or highly satisfied with BP2BT Program (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 It is too early in the implementation process for a customer satisfaction survey to take place. Beneficiary Comments: satisfaction will be measured by June 2020. IN00762813 ►BP2BT IT System developed and operationalized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project has achieved the mid-term target of ‘Yes’. The system has been developed and operated since December 2018 to accommodate the first disbursement as verified by the BP2BT Project Comments: Management. Component 2: Home Improvement Assistance (Bantuan Stimulan Perumahan Swadaya/BSPS) IN00762800 ►Percentage of reconstructed and/or improved housing unit verified as accurate in beneficiary targeting (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 75.00 75.00 85.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project has achieved the mid-term result of 75%. The data were obtained from the 2018 BSPS Comments: evaluation report, and formulated and organized by the BSPS MPWH evaluation unit. IN00762803 ►Percentage reconstructed and/or improved housing unit verified appropriately in fulfilling standard house requirement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The Government has not previously included this indicator as part of its monitoring process. The World Bank carried out a rapid assessment to evaluate the structural integrity of the upgraded homes and identified that only 11% of the sampled units met the Government’s construction standard. The Comments: Government has now agreed to include this indicator within their monitoring system and the measurement will start in Q1 2020. IN00762806 ►Percentage of increased BSPS implementation in urban area (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/12/2019 Page 4 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) Value 20.00 34.00 34.00 35.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The Project is overachieving the mid-term target of 30% as verified by BSPS Project Management. Comments: IN00762809 ►Percentage of complaints recorded and processed within the service standard applied (disaggregated by gender) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 65.00 80.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project is underachieving the mid-term target of 70%. The result is based on information provided in the existing BSPS MIS – SIRUS (Sistem Informasi Rumah Swadaya). The MIS contains basic information on whether processing of complaints and questions submitted to the system are ‘ongoing’ or ‘completed’, but not on how those complaints/questions are being processed, nor having differentiation of gender in its database. No clear guidelines are applied to complaint processing. The Swadaya team has agreed to: jointly review the draft SOP for complaint handling mechanism that was previously developed for the Comments: canceled TA package on Complaint Handling System development; incorporate and apply such an SOP in the BSPS operations manual and technical guidelines; and display the record in SIRUS and on the NAHP website. It was recommended that this action is taken by December 2019, in preparation for 2020 implementation. An updated result, (disaggregated by gender) will be recorded in the next ISR once the GRM has been improved. IN00762812 ►Percentage of beneficiaries satisfied or highly satisfied with BSPS Program for home reconstruction/improvement (disaggregated by gender) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 92.00 92.00 80.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project is overachieving the mid-term target of 70% as well as the end-of-project target as verified by a 2019 BSPS evaluation carried out by Build Change. The evaluation targeted a sample of 480 Comments: households, comprising both men and women. 28% of these households are headed by women. IN00762814 ►Swadaya Management Information System developed and operationalized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project has achieved this target. Upgraded SMIS/SIRUS are fully financed by the Government’s own funds with technical support and advice from the Bank’s team. Efforts to improve the system’s ability to provide useful data and information to support the decision-making process are underway, including Comments: provision of a key data dashboard, a data synchronization and transfer mechanism for substandard homes with Local Governments, and linkage of the system with RTLH (sub-standard house) database to crosscheck beneficiary targeting accuracy. Component 3: Technical Assistance for Housing Policy Reform IN00762798 12/12/2019 Page 5 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) ►A Housing and Real Estate Information System (HREIS) developed created and under implementation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Oct-2016 15-May-2019 15-Nov-2019 31-Mar-2021 The project has yet to achieve the mid-term target of ‘Yes’. The contract for the consulting firm which will develop the HREIS was signed in November 2019. It is expected that the HREIS will be launched and Comments: operational by March 2020. IN00762801 ►Mortgage guarantee mechanism developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Oct-2016 15-May-2018 25-Oct-2019 31-Mar-2021 The project has yet to achieve the mid-term target of ‘Yes’. Decision will be made during the upcoming restructuring in March 2020, whether to keep this indicator or drop it. Comments: IN00762804 ►Public Housing Policy Roadmap developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project has yet to achieve the mid-term target of ‘Yes’. The procurement of the roadmap package has been long delayed and will be relaunched in November 2019. It is expected that the procurement will be Comments: completed and the contract for this package signed by May 2020. IN00762807 ►Business Plan for the National Housing Corporation (Perum Perumnas) to manage affordable housing developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project has yet to achieve the mid-term target of ‘Yes’. The contract was signed at the end of October Comments: 2019 and implementation of the activity has started. IN00762810 ►Local Government Affordable Housing Plans developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-Oct-2016 15-May-2019 25-Oct-2019 31-Mar-2021 The project has not achieved the mid-term target of 6 developed plans. The procurement is underway and Comments: expected to be completed in December 2019. 12/12/2019 Page 6 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154948 IBRD-87170 Effective USD 450.00 450.00 0.00 131.31 318.69 29% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154948 IBRD-87170 Effective 17-Mar-2017 30-Nov-2017 24-Jan-2018 31-Mar-2021 31-Mar-2021 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 12/12/2019 Page 7 of 8 The World Bank Implementation Status & Results Report National Affordable Housing Program (P154948) There are no related projects. 12/12/2019 Page 8 of 8