This project performance evaluation report presents the findings of the evaluation of the Technological and Professional Skills Development Sector Project which aims to assist the Government of Indonesia in improving its international competitiveness and help achieve sustainable economic growth to contribute to poverty reduction based on gender, social, and geographic equity. The rationale of the project was that the Government of Indonesia recognized that Indonesia must augment the skills of its workforce by strengthening the role of higher technical education. A strong, competitive workforce is deemed necessary for sustainable national progress, and a greater share of higher education graduates in the labor force is a key to rapid industrialization and increased competitiveness.
The project was rated successful. It achieved its objective of improving the teaching and learning environment at the 74 project HEIs by upgrading physical capacities, reforming the accreditation system, strengthening staff development, and raising relevance and quality of 170 study programs.
The project was rated highly relevant. Its objectives and components are fully consistent with the government's priorities in higher education spelled out in the Long-Term Development Plan for Higher Education, 1996-2005 and Asian Development Bank's country operational strategy and country assistance plans. The project was rated effective. Envisaged outputs and outcomes had been achieved to a significant extent. The project was rated efficient. The project inputs and activities produced positive changes in the academic work and learning environment of the assisted higher education institutions by strengthening the priority study programs at less investment cost ($217.00 million) than estimated ($250.00 million) at appraisal. The project was rated likely sustainable. The government's commitment to strengthen and reform the education sector as a whole is reflected in the sector's increasing share in budget allocation.The institutions themselves have been able to sustain and even replicate in other faculties and departments several successful activities initiated under the project. There seem to be two main sources of sustainability: (i) higher education institutions administrators' appreciation of the benefits from various project induced activities and, therefore, their willingness to maintain budget allocations; and (ii) stronger capacity to write proposals to obtain funding from external sources, such as grants from government programs and development partners.