The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Indonesia Social Assistance Reform Program (P160665) EAST ASIA AND PACIFIC | Indonesia | Social Protection & Labor Global Practice | Requesting Unit: EACIF | Responsible Unit: GSP02 IBRD/IDA | Program-for-Results Financing | FY 2017 | Team Leader(s): Changqing Sun, Pablo Ariel Acosta Seq No: 4 | ARCHIVED on 14-Apr-2019 | ISR36355 | Created by: Changqing Sun on 17-Mar-2019 | Modified by: Changqing Sun on 12-Apr-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Program Development Objectives (PDO) are to support the conditional cash transfer program coverage expansion, strengthen its delivery system, and improve its coordination with other complementary social programs. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The Indonesia Social Assistance Reform Program is a Program-for-Results (PforR) operation supported by an IBRD loan of US$200 million. It supports the expansion of the government’s conditional cash transfers (CCTs) under the Program Keluarga Harapan (PKH), the strengthening of the program’s delivery system, and improved coordination with complementary social programs. This PforR operation is a key component of the World Bank Group’s Country Partnership Program Framework for Indonesia, which focuses on government priorities that have transformational impact. Integration of family-based social assistance through conditional cash transfers is one of the key strategies in Indonesia’s mid-term development plan. Good progress has been made under the PforR operation in 2018. Per the draft Progress Report prepared by the Directorate of Family Social Security (JSK) of the Ministry of Social Affairs, three out of nine DLIs have already achieved the final targets for the PforR. These include the cashless payment modernization, program coverage expansion, and the scale-up of Family Development Sessions. With coverage of nearly 10 million families, PKH is now the second largest CCT program in the world, only second to Brazil’s Bolsa Familia. Another two DLIs – on the Grievance Redress System, and program coverage in remote areas - have achieved the targets for 2018. The Program needs to operationalize the newly developed e-PKH to upgrade its data collection, reporting, and monitoring processes. The Program should also implement additional measures to address remaining gaps related to beneficiaries' access to other social assistance programs. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P160665 IBRD-87500 Effective USD 200.00 200.00 0.00 79.80 120.20 40% Key Dates (by loan) 4/14/2019 Page 1 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P160665 IBRD-87500 Effective 09-May-2017 10-Jul-2017 30-Aug-2017 30-Jun-2021 30-Jun-2021 Program Action Plan MoSA strengthens capacity of PKH IT and data team to operate and upgrade PKH PMIS, including development of Action Description an Enhancement Action Plan to address various gaps and weaknesses of the current PMIS. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Jan-2019 In Progress Completion The new PKH PMIS is capable to support program operation, to monitor implementation performance, and to serve Measurement information needs of all stakeholders efficiently. The new PKH PMIS (e-PKH) has been developed and is in the process of being tested and data migration. Both web and mobile applications of e-PKH are scheduled to be deployed for operation for the second payment cycle of 2019 Comments (April-June) Action Description PKH Operations Manual is revised and approved for dissemination and operational reference. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Jul-2017 Completed Completion PKH Operational Manual is up-to-date, clear, and comprehensive. Measurement Comments The 2019 PKH Implementation Guidelines (Summary and eight topics) have been issued. Action Description PKH assessment is strengthened through structured M&E activities. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Jan-2019 In Progress Completion PKH operational performance can be regularly assessed using its M&E outputs. Measurement PKH monitoring indicators at the program and sub-directorate level have been finalized and agreed upon. PKH M&E Comments strategy is being drafted. MoSA reviews PKH implementation requirements for Papua and other areas with challenging conditions and issues a Action Description guideline to allow more flexible implementation modalities that take into account local costs of operation and resource constraints. Source DLI# Responsibility Timing Timing Value Status 4/14/2019 Page 2 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Technical Client Due Date 29-Dec-2017 Delayed Completion PKH Akses enables smooth operation in remote areas with challenging conditions. Measurement Comments PKH Akses Implementation Guideline is being developed and will be issued in 2019. MoSA reviews the JSK’s organizational structure, updates descriptions of units and positions (roles and Action Description responsibilities, job description and qualifications), and carries out training and capacity-building activities Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 29-Dec-2017 Delayed Completion JSK, as the national management body for PKH, has rationalized its organizational structure and job positions, and Measurement empowered its staff with clear roles and responsibilities, tools and standards, and skill development opportunities. MoSA has reviewed the job descriptions of JSK units and positions. JSK has been recruiting new non-civil servant Comments staff to supplement the existing HR capacity. Additional training is to be provided in 2019 via MoSA’s internal training mechanism. Action Description Recertification strategy is suitably revised and approved for implementation. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Dec-2018 In Progress Completion PKH has implemented a re-certification process with a regular schedule. Measurement PKH’s recertification method is being reviewed based on the 2017 data collected. The recertification method will be tested out in selected locations in 2019 before recommendations can be approved by MoSA for further scale up. Comments Disruptions in supply/availability of related education and health services are monitored, reported, and follow-up Action Description action/protocol developed for this purpose is approved. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Jan-2020 In Progress Completion PKH has established a robust information sharing mechanism with education and health sectors Measurement PKH will pilot a data exchange mechanism with education and health sectors to monitor the beneficiaries’ access to Comments health and education services in 2019. 4/14/2019 Page 3 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Action Description An Error, Fraud, and Corruption (EFC) Framework is finalized and adopted. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Nov-2018 In Progress Completion An EFC framework is established to detect, prevent, and reduce errors, frauds, and corruption. Measurement The Code of Conduct has been issued and an Ethics Commission has been introduced to address fraud and Comments corruption cases related to the program . Action Description MoSA will take actions to strengthen its fiduciary management related to PKH. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2018 In Progress Completion MoSA has strong fiduciary management capacity Measurement Comments Actions are being taken in response to 2017 Audit Report’s recommendations. MoSA will assign a team of social specialists to oversee social risks and impacts and develop capacity-building and Action Description risk management strategies. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Due Date 31-Jul-2018 Completed Systems Completion MoSA is able to oversee and manage social risks related to the program Measurement One social specialist assigned to oversee social risks emanating via PKH Contact Center. MoSA and local Comments governments share the responsibilities of social risk management. PKH needs to work with MoSA's other units on social risk management. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate 4/14/2019 Page 4 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial RiskComments Comments All operations risk ratings remain unchanged. The upcoming MTR will re-assess the Political and Sector Strategy risks after the election. Results PDO Indicators by Objectives / Outcomes To strengthen the delivery system of the conditional cash transfer program: IN00681862 ►Share of sub-districts with PKH beneficiary families having switched to cashless payment methods (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 100.00 100.00 73.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 This indicator had achieved the final target and beyond by the end of 2017. The program was operating in Comments 6,724 sub-districts and all 10 million beneficiary families had Basic Saving Accounts. IN00681865 ►Share of children aged 0–6 years in PKH beneficiary families who received basic health and nutrition services in accordance with protocol (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 79.70 87.30 87.00 90.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Per the Progress Report, 2,789,854 out of 3,210,043 young children aged 0-6 years old received basic Comments health and nutrition services. IN00681876 ►Share of children aged 7–18 years in PKH beneficiary families attending primary, junior, and senior secondary school at least 85% of the time (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 81.10 99.70 99.83 95.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Per the Progress Report, 4,092,321 out of 4,099,137 children aged 7-18 years enrolled and attended school Comments at least 85% time in 2018. 4/14/2019 Page 5 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) To improve conditional cash transfer program coordination with complementary social programs: IN00681863 ►Share of PKH beneficiaries receiving other social assistance program benefits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.60 5.00 29.00 95.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Per the Susenas 2018 March data, only 27% of PKH families receive all three programs, though it is worth Comments noting that the comparable measure for non-PKH families is much lower. To support the conditional cash transfer program coverage expansion: IN00681864 ►Total number of PKH beneficiary families (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5,981.00 9,887.00 10,000.23 10,000.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 The program has achieved the final target Comments Intermediate Results Indicators by Results Areas Strengthening the program delivery system to improve efficiency, transparency, and accountability: IN00681877 ►PKH PMIS enhancements implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Additional Enhancement Action Enhancement Action enhancements Value No Plan in process of Plan partially recommended by the implementation implemented System Audit on PKH PMIS implemented Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 The development phase of the new program information system "e-PKH" was partially completed by the end of 2018. The current focus was to prepare for deployment, including system level configuration and data migration. The five operation-essential modules (validation, data updating, compliance verification, monthly Comments meeting, and payment disbursement) are scheduled to be deployed to support the second payment cycle of 2019, starting in April. IN00681880 ►Production of operation monitoring statistical reports for all districts regularly generated and disclosed to related stakeholders (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Monitoring report on PKH implementation Operation monitoring Operation monitoring Value No already exists, but report disclosed after reports in process cannot be accessed further modification openly 4/14/2019 Page 6 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 The current monitoring report on PKH implementation is not generated at sub-national level by MoSA. Some sub-national governments might have their PKH monitoring reports, but they are not available to Comments MoSA or other stakeholders. IN00681883 ►PKH uses digital platforms and mass media to regularly disclose information about program performance and the program manages to carry out social promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Communication through Communication digital platforms and through digital platform Value No Achieved mass media has been and mass media carried out at the regularly disclosed at national level subnational level Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 The program has encouraged the implementation staff to document and share PKH related information Comments broadly with the public using digital and traditional media. IN00681884 ►HR capacity building plan and performance monitoring system implemented for program implementers at the subnational level (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The HR Capacity Development Plan has been implemented in the form of training and HR strategy revised technical guidance, and after review of Value No Achieved a performance implementation monitoring system has lessons been implemented through performance appraisal Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Comments IN00681885 ►An enhanced GRS rolled out after evaluation of pilot (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Grievance analysis Pilot in process of produced using data Pilot implemented and Value No implementation and collected by the evaluated evaluation enhanced GRS rolled out nationwide Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Comments IN00681886 ►Error, fraud, and corruption detection systems implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No EFC detection system in PKH HR Code of Ethics EFC detection process of piloting has been mandated and systems modified Ethics Commission has been established to 4/14/2019 Page 7 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) address fraud and corruption related issues. The Code of Ethics has been socialized and implemented. Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Comments IN00681887 ►Share of PKH beneficiary families, for which verification of their respective conditionality is recorded in PKH PMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 36.00 31.00 90.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Comments Improving access to complementary social programs for PKH beneficiaries: IN00681878 ►Share of PKH beneficiaries whose NIK numbers have been verified (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 73.50 97.42 87.00 95.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 The previously reported value for August 2018 is likely incorrect. The task team is following up with the Comments counterpart team. IN00681881 ►Number of PKH mother groups that have received FDS from trained facilitators (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7,357.00 225,940.00 173,222.00 106,000.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 Comments Expanding coverage and improving inclusivity of the conditional cash transfer program: IN00681879 ►Ratio of number of PKH beneficiary families to number of the targeted families in areas categorized by the Ministry of Social Affairs as remote and border areas (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 48.00 0.00 80.60 85.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 4/14/2019 Page 8 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) Comments IN00681882 ►Number of PKH beneficiary families that also receive benefits for severely disabled or elderly family members (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 496,540.00 225,490.00 211,962.00 966,000.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 31-Dec-2020 PKH adopted a “flat” benefit structure in 2017 and 2018, i.e. the PKH beneficiary families with elderly or severely disabled members received IDR 2 million while other beneficiary families received IDR 1.89 million. However, in 2018 only 211,962 out of 1,723,213 families with elderly or severely disabled members received IDR 2 million due to budget constraint while the rest received only IDR 1.89 million. In 2019 PKH Comments switched to a variable benefit structure with multiple benefit components, including social welfare component of IDR 2.4 million for elderly or severely disabled. The previous reported 2017 value should be 194,220. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 PKH PMIS enhancements implemented (Output, 10,000,000.00, 30%) Baseline Actual (Previous) Actual (Current) 2020 Audit report recommended Value No In process In process enhancements implemented Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- Enhancement Action Plan had been only partially implemented by the end of 2018. However, the Comments implementation has continued to proceed since and the new PMIS is in the process of being deployed. ►DLI 2 Share of sub-districts with PKH beneficiary families having switched to cashless payment methods (Intermediate Outcome, 30,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 Value 15.00 100.00 100.00 73.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- Has achieved the final target. Comments ►DLI 3 An enhanced GRS rolled out after evaluation of pilot (Output, 10,000,000.00, 10%) Baseline Actual (Previous) Actual (Current) 2020 Grievance analysis Value No In process In process produced Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- Comments The recommendations from the GRS pilot will be incorporated into the operation in 2019. 4/14/2019 Page 9 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) ►DLI 4 Share of PKH beneficiary families, for which verification of their respective conditionality is recorded in PKH PMIS (Intermediate Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 40.00 36.00 31.00 90.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- The lack of progress in this indicator reflects the gap in data reporting of actual verification of compliance outputs. The recent mission found again during its field visit that the execution of the verification process has Comments been carried out per the operation requirements. The new e-PKH information system is to be deployed in mid- 2019 and the data gap is expected to be addressed as the new system would streamline the process. ►DLI 5 Share of PKH beneficiaries receiving other social assistance program benefits (Intermediate Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 13.60 5.00 29.00 95.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- The result is close to the Susenas estimate Comments ►DLI 6 Share of PKH beneficiaries whose NIK numbers have been verified (Output, 10,000,000.00, 44%) Baseline Actual (Previous) Actual (Current) 2020 Value 73.50 97.42 87.00 95.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- The progress is still significant despite not achieving the target. The previously reported value for August 2018 Comments is likely incorrect and the team is following up with the counterpart. ►DLI 7 Number of PKH mother groups that have received FDS from trained facilitators (Output, 40,000,000.00, 79%) Baseline Actual (Previous) Actual (Current) 2020 Value 7,357.00 225,490.00 173,222.00 106,000.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- Have achieved the final target. The training capacity through 7 training institutes has been a constraining factor for further scaling up of FDS despite the progress. The monitoring mechanism also needs to be Comments strengthened. 4/14/2019 Page 10 of 11 The World Bank Implementation Status & Results Report Indonesia Social Assistance Reform Program (P160665) ►DLI 8 Total number of PKH beneficiary families (Intermediate Outcome, 20,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 5,981.00 9,887.00 10,000.23 10,000.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- Has achieved the final target. Comments ►DLI 9 Ratio of number of PKH beneficiary families to number of the targeted families in areas categorized by the Ministry of Social Affairs as remote and border areas (Intermediate Outcome, 20,000,000.00, 49%) Baseline Actual (Previous) Actual (Current) 2020 Value 48.00 0.00 80.60 85.00 Date 30-Dec-2016 31-Aug-2018 31-Dec-2018 -- The remote and border areas categorized by the Ministry of Social Affairs have been updated. However, the Comments previously reported zero for August 2018 should be "not available". 4/14/2019 Page 11 of 11