26 May 2008 to 31 December 2013 (67 months) RETF: 10 August 2010 to 31 December 2013 (40 months)

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1 PNPM Generasi Quarterly Progress Report: April to June 2013 Summary Information Status Activity Number Task Team Leader(s) Executing Agency(ies) Start date to Closing Date Geographic Coverage Active RETF: P (TF097410) BETF: P (TF092194) Robert Wrobel Directorate for Empowerment of Community Social and Cultural Institutions, Directorate General for Village Community Empowerment, Ministry of Home Affairs 26 May 2008 to 31 December 2013 (67 months) RETF: 10 August 2010 to 31 December 2013 (40 months) 3,600 villages in 370 poor sub-districts in East Nusa Tenggara (NTT), West Nusa Tenggara (NTB), West Java, East Java, North Sulawesi, Gorontalo, West Sulawesi and Maluku provinces Approved Budget US$ 110,840,297 Disbursements during the Quarter Cumulative Disbursements US$ 7,081,156 US$ 53,543,670 Progress Project Overview: The development objective of PNPM Generasi is that villagers in PNPM-Rural locations benefit from improved socio-economic and local governance conditions. The program targets three Millennium Development Goals in which Indonesia s performance is lagging, these being: i) achievement of universal basic education; ii) reduction in child mortality; and iii) improvement in maternal health. Through the existing PNPM Rural platform and CDD approach, PNPM Generasi uses community planning and incentivized sub-district grants to improve outcomes in terms of twelve priority health and education indicators. Communities, with assistance from PNPM facilitators, work with health and education service providers to identify locally appropriate ways to improve access to and increase the use of health and education services. Sub-district grants are used to address either small-scale

2 supply or demand constraints, depending on where the need is the greatest. Overall progress towards development objective: Progress toward the project s development objective continues to be satisfactory. An impact evaluation completed in 2011 showed that the project has been successful in achieving its target outcomes in terms of improving immunization coverage, prenatal care visits and assisted deliveries (10-11 percent increases in associated indicators) in the period from 2007 to On average, PNPM Generasi had a statistically significant positive impact for the twelve target health and education indicators, with the greatest impacts observed in areas with low baseline health and education indicators. The evaluation also showed that the program successfully targeted program benefits, particularly in-kind benefits, to people in the bottom two income quintiles. TF is used to support government efforts to scale-up PNPM Generasi in 500 poor, rural subdistricts with low health and education indicators by During the reporting period, there were several key achievements. The Millennium Challenge Authority-Indonesia (MCA-I) signed an agreement to commit $89 million to support the expansion of PNPM Generasi until The MCA-I will fund complementary activities to strengthen maternal and child health and nutrition services in PNPM Generasi locations. A PSF grant to the value of $31.7 million was approved and will support the expansion of PNPM Generasi to 130 new sub-districts in 2014, as well as the provision of technical assistance and facilitation to rural communities. Key developments during the quarter: The provision of intensive implementation support to the implementing agency contributed to the following outputs during the quarter: MCA-I is now a contributor to the PSF and will support PNPM Generasi Scale-Up; A new PSF grant to the value of $31.7 million was approved on 25 June The grant facilitates the introduction of improved M&E arrangements to PNPM Generasi, including an updated results framework and data collection methodologies; Government has confirmed in writing that the PNPM Generasi will be scaled-up to 500 subdistricts in 2014, with the target sub-districts having been identified; Field work for two pieces of operational research has been completed. The first maps local institutions and actors that affect frontline health service delivery. The second uses a qualitative methodology to trace the pathways through which PNPM Generasi improved indicators for chronic malnutrition. Findings from both pieces of operational will be used to improve PNPM Generasi s design. Critical challenges: Commitment from Government to finance PNPM Generasi from 2014 onwards: Uncertainty over the availability of APBN funding is making long-term planning for PNPM Generasi challenging. The implementing agency is preparing a multi-year budget projection that will be used as the basis for discussions with Bappenas and DPR in order to solidify GOI funding commitments to PNPM Generasi; The 2013 Carry Over budget (DIPA Luncuran) has not yet been made effective. As a result, approximately US$ 3 million in sub-district grants cannot yet be utilized by communities. After intensive discussion between MoF and the implementing agency, it is likely that the carry over funds will need to be included in the second 2013 budget revision in order to be executed.

3 Activities planned during the next quarter: Support the GOI in processing additional financing to PNPM Generasi for the period from 2014 to It is anticipated that the additional financing proposal will be brought forward for JMC consideration in September 2013; ; Support PMD to deliver the first round of a performance monitoring survey that will provide key data on implementation progress; Support PMD in improving safeguards related to supplementary feeding activities; Support PMD in developing the revision of PNPM Generasi Operational Guidance (PTO); Finalize and disseminate operational research reports, including a qualitative study of nutrition impacts in PNPM Generasi to inform government s Scaling-Up Nutrition (SUN) strategy; Provide technical assistance to TNP2K PNPM Roadmap working groups on integrated facilitation and synergies between Cluster 1 and Cluster 2 poverty reduction programs; Support PNPM stakeholders in developing a governance structure involving the Millennium Challenge Account-Indonesia (MCA-I), the Ministry of Health, and Ministry of Education and Culture and BKKBN to ensure smooth implementation of complementary supply-side activities in PNPM Generasi areas; Support PMD in conducting a facilitator workload and training needs assessment; Develop the conceptual framework on the communication and training strategy to support the first 1000 days movement through PNPM Generasi mechanism; Dissemination of PNPM Generasi communication materials to a wider set of clients (through quarterly update, videos, and other means).

4 Key Performance Indicators Indicator Baseline Cumulative Target Cumulative Achievements VAR Target for 2013 Achieved in 2013 VAR Remarks Project Development Objective: conditions. Villagers in PNPM-Rural locations to benefit from improved socio-economic and local governance # of direct project beneficiaries 3.1 million (2010) 6.1million million (2012) 2012 beneficiary data not fully uploaded yet n/a 5.4 million million Data from only 68% of villages uploaded to MIS for 2012.This is due to the slowness of facilitators on filling-up the forms and also that some data are being input by the district computer operator. Anticipated that target will be met once remaining MIS forms are uploaded sub-disrict grants have not yet disbursed except the DOK for planning and training # of sub-districts with communities benefiting from improved access to On target Communities are currently evaluating progress achieved in 2012 and planning interventions for 2013 with support from 1 Horizon 2014/15, when the number of districts covered by the program should reach The target defined in the legal documents (369) has already been met, but the GOI aims to scale-up the program to 500 poor kecamatanhorizon 2014/15.

5 health and education services trained facilitators. Component 1: Sub districts grants 95% of sub-districts benefit from increased investments in priority health and education targets 95% (276 of 290 in 2011) 95% 93% (2012) -2% 95% 0% -95% 2013 sub-districts grants have not yet been disbursed. PMD anticipates disbursements will take place beginning in the second half of the 2013 calendar year. Min. 50% participation rate of women and poorest community members in planning and decision-making meetings 63% (2010) 50% 69% % 50% 0% -50% Data from 100% of 2012 villages uploaded MIS data will begin being uploaded in October Component 2: Technical Assistance 90% of planned program consultant positions (40 personnel in province and national) filled 0% 90% 95% +5% 90% 95% +5% Two empty positions at present (one NMC MIS Specialist and the East Java Provincial Specialist). 90% of planned facilitator and computer operator positions (492 0% 90% 95% +5% 90% 96% +6% 16 empty positions at present.

6 personnel in district and sub-district) filled Data from 85 % of target communities uploaded to the program web-based MIS 0% 85% 68% (2012) -17% 85% 0% -85% MIS forms for 2013 will begin being uploaded in Oct The community is now still in a process of finalizing the activity proposals and analyzing the final result from the achievement of the target indicators. It is anticipated that all the data can be verified and input to the system by the latest on October Component 3: Training and Capacity Building 90% of program facilitators (district and sub-district) receive agreed upon training days in participatory planning methods and health and education topics 0% 90% 95% (2012) +5% 90% 0-90% Anticipated that all 2013 facilitator training activities will be completed by December. The training will start more likely on October This is due to the process of hiring the EOs which take longer than expected. 95% of sub-districts receive program operations manual and health and education information 0% 95% 83% -12% Remaining 22% +10% -12% 63sub-districts have not yet received the 2012 PTO revision.

7 materials Component 4: Project Management Support Multi-sectoral regional and national evaluation workshops conducted Multi-sectoral workshops are not yet scheduled for this year. The national evaluation workshop is expected to be held on December 2013.

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