Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 05 Dec 2008
PDS Updated as of 25 Apr 2014

Project Name Polytechnic Development Project
Country Indonesia
Project/Program Number 42099-012
Status Closed
Geographical Location Indonesia
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.
Sector Education
Subsector Technical and vocational education and training
Strategic Agendas Inclusive economic growth (IEG)
Drivers of Change Governance and capacity development (GCD)
Private sector development (PSD)
Gender Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Technical Assistance7453Japan Special Fund1,200
Counterpart 300
TOTAL US$ 1,500

Summary of Environmental and Social Issues

No significant safeguard issues and other social risks are envisaged. No new polytechnics will be constructed, although some classrooms and workshops will be rehabilitated.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

The Directorate General of Higher Education has sought the development of this project. MONE consulted with ADB in preparing the TA concept during the preparation of the Country Operations Business Plan 2008-2010, and the 2008 Country Program and Confirmation process. There is a general recognition that the current TVET sector faces many challenges and that a particular weakness is its inability to develop workers with skills that are relevant to the needs of the economy. There is also recognition that graduates of VS have access to too few options for further developing their skills. To address this, the focus of the TA will be on lifting the quality and relevance of both public and private polytechnics by increasing the participation of the private sector in the planning and provision of skills training in Indonesia. Close consultation with employers, industry groups and chambers of commerce will ensure that the resulting systems are responsive to labor market needs. PPTA team was mobilised on June 15, 2010. An inception report was approved and the team is now developing project options for consideration by MONE including - labour market assessment, organisational and policy reviews and assessments of capacity. Sectoral analysis products will be available in November with a concept paper prepared in early 2011.

During Project Design
The Directorate General of Higher Education has sought the development of this project. Ministry of National Education (MONE) consulted with ADB in preparing the TA concept during the preparation of the Country Operations Business Plan 2008-2010, and the 2008 Country Program and Confirmation process. There is a general recognition that the current Technical Vocational Education Training (TVET) sector faces many challenges and that a particular weakness is its inability to develop workers with skills that are relevant to the needs of the economy. There is also recognition that graduates of Vocational Schools have access to too few options for further developing their skills. To address this, the focus of the TA will be on lifting the quality and relevance of both public and private polytechnics by increasing the participation of the private sector in the planning and provision of skills training in Indonesia. Close consultation with employers, industry groups and chambers of commerce will ensure that the resulting systems are responsive to labor market needs.
During Project Implementation
The Executing Agency for the PPTA PDP is the Directorate General of Higher Education (DGHE) of the Ministry of National Education (MoNE). The implementation of the PPTA is supervised by the Director of the Directorate for Learning Programs and Student Affairs (till recently named the Directorate of Academic Affairs). An advisory counterpart team of DGHE to work with the TA has been appointed under the supervision of the Director of Learning Programs and Student Affairs consisting of professional staff of Polytechnic Institutions (7 members) and MoNE (10 members). In the inception phase, the counterpart team presented its draft Strategic Plan for Polytechnic Development 2010-2014 indicating preferred directions for the intended project, which were taken into account by the PPTA team in the design of the project during the second phase. The draft Plan had been developed in early 2010 in anticipation of the ADB support to the sector. Also, the planning of the PPTA project was discussed in the inception phase with the objective to align the activities of both teams, to agree on working arrangements and cooperation in preparation for the Polytechnic Development Project. Since the start of the project there has been a series of meetings of the counterpart team with the PPTA experts team on the planning and activities of the TA and especially on the development of the Problem Tree and the DMF for the project. There have also been joined field visits for the sector assessment, and the PPTA experts were invited to three workshops in which all state Polytechnics participated to present and discuss the initial design of the PDP. The workshops provided an opportunity to inform all state Polytechnics on the intended PDP and to receive their feedback and recommendations on the implementation of the PDP. A major concern of the counterpart team has been the timely production of the final project document for the PDP loan to allow the use of earmarked GoI funds for the PDP in 2011. An important approach was the conducting of interviews and discussions with relevant stakeholders all over Indonesia. A large number of polytechnics, other TVET and higher educational institutions, education and training support institutions, industries, industrial associations, ministries and donor agencies were visited for interviews, discussions, meetings, collecting information and informing them on the intended PDP. Some 32 visits were made to different public and private polytechnics, some 16 visits to different industries, 8 visits to supporting agencies (BNSP, LSP, Kopertis, BAN-PT, ASPI, SEAMOLEC), and 7 visits to Ministries other than MONE. Around 95 interviews were conducted with one or more resource persons. A workshop with the donor community and stakeholders from the polytechnic education sector was held in the Ministry of Education on 29th July 2010, in which the PPTA was presented and discussed to inform the international donor community and stakeholders on the intended PDP. Several donors, including ADB, presented their visions and plans in the context of overall skills development policies and requirements in Indonesia, and options for donor coordination and alignment were discussed. The series of meetings and workshops with the MoNE counterpart group and involving representatives of the Polytechnics were an important venue to socialize the project objectives and approach and to get feedback in the process of defining the project design and the technical approaches for its implementation. Some 16 meetings were held with the counterpart group till May 2011. Of special importance were the meetings with all polytechnic directors and management staff arranged by the counterpart group, respectively in Manado, Surabaya, Batam and Jakarta. The objectives of the PDP were socialized and intensively discussed with the polytechnic directors and managing staff, including implementation strategies. For the definition of the Problem Tree based upon the findings of the assessment phase, and for the initial design of the DMF, the project team had a series of intensive focus group discussions by which both documents gradually took shape and were prepared for further consultation with the ADB and stakeholders at the central and institutional levels.

Description

The impact of the project is that polytechnic education system contributes to national socio-economic development objectives in selected industries. The expected outcome is that polytechnic education is more accessible, relevant and responsive to labor market needs, technological and entrepreneurial innovation. The performance targets are (i) the number of polytechnic students enrolled in programs in the 4 priority sectors increases by 25%, with at least 30% of these female; (ii) the number of polytechnic graduates entering the workforce in-creases by 25% in 4 priority sectors, with at least a 15% increase of these female, and (iii) the percentage of polytechnic graduates finding relevant employment within 6 months of graduation increases 25% by Year 5 at four Centers of Excellences (COEs) and 12 satellite polytechnic institutions. The proposed project has the following outputs: (a) Output 1: Increased Quality and Relevance of Polytechnic System, Public and Private. The project will: (i) strengthen standards in collaboration with industry and align with the Indonesian Qualification Framework (IQF). Standards will be packaged into professional teaching programs to address skills requirements in 4 industry sectors; (ii) lecturer skills enhancement program to be implemented; (iii) revise accreditation systems, national assessment systems, and quality assurance systems according to IQF and ASEAN policies and guidelines; (iv) Improve facilities and equipment in 4 COEs and 12 satellite polytechnic institutions; (v) facilitate engagement with industry and implement projects funded through a National Skills Fund. (b) Output 2: Increased and more equitable access to polytechnic education. The project will: (i) increase participation rates in four priority sectors; (ii) revise entry requirements and access policies to increase enrolments; (iii) assess through RPL 20000 students; (iv) link with vocational schools and private providers to establish seamless pathways and provide multiple entry points into the system, (v) fund equity strategies to ensure access by females and disadvantaged groups. (c) Output 3: Increased private sector involvement in polytechnic sector. The project will: (i) establish an institutional framework for private sector involvement; (ii) implement training programs and methods relevant to industry skills needs; (iii) enable industry to support delivery and assessment of training. (d) Output 4: Strengthened governance, management and financing of polytechnic institutions. The project will: (i) review and revise the regulatory, employment, management and financing frameworks and systems for polytechnic institutions to be better aligned with government policy objectives.

Project Rationale and Linkage to Country/Regional Strategy

Indonesia saw rapid growth and declining poverty in the early 1990s, followed by sudden economic deterioration and heightened poverty over the period 1997-2000, following the Asian financial crisis. Since the crisis, the country has undertaken significant economic reforms and has seen its economic growth increase substantially. At the same time, the focus on macroeconomics and debt reduction has led to a diminished emphasis on development spending. As a result, progress toward the Millennium Development Goals (MDGs) has been mixed. The Government?s Medium-Term Development Plan 2005-2009 seeks to raise levels of sustainable economic growth, create jobs and accelerate the achievement of the MDGs. The ADB?s Country Strategy and Program (CSP) for 2006-2009 has identified a lack of competitiveness as a key constraint on economic growth (in 2008/09, Indonesia ranked 55th on the Global Competitiveness Index) and seeks to help the Government achieve higher levels of pro-poor sustainable growth and enhance social development. It will also have a positive impact on the country?s investment climate and business development by helping to meet the expected demand for skilled labor. It will also support a number of the broad areas of engagement in the CSP, including the development of infrastructure, accelerated attainment of the MDGs and increased emphasis on private sector expansion. Improvements in the performance of polytechnics would also complement government efforts to strengthen vocational education at the senior secondary school level.

Development Impact

The polytechnic system is more responsive and relevant to labor market demand.

Project Outcome

Description of Outcome
An agreed design for a loan project, suitable for ADB financing, that will enhance the quality and relevance of the polytechnic system and produce graduates with skills relevant to the labor market.
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
(i) An assessement of the role of polytechnics in the broader technical and vocational education; (ii) A strategy for the reform of the polytechnic sytstem; (iii) A critical review of sector contraints and experiences of previous projects completed, and critical issues in reforming polytechnic identified; (iv) A completed project outline that addresses key constraints and projected labor market needs; (v) A detailed project design based on the DMF.
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2008 Dec 12
Consulting Services
An international consulting firm will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The selection and engagement of the international consulting firm will be through the quality and cost based selection method using a full technical proposal and standard quality-cost ratio of 80:20. The TA will be carried out in two phases, with a 3-4 week break in between for the Government and ADB to consider the recommendations arising from the sector assessment. For Phase 1, the TA will provide 4 international consultants (12 person-months) and 4 national consultants (12 person-months). For Phase 2, the TA will provide 9 international and 10 national consultants for 18 and 20 person-months of international and national consultancy services respectively. Some time allocations and tasks may change. For Phase 1, the team leader will submit a brief inception report within one month of starting the TA, a midterm report after 2.5 months, a draft final report after four months and the final report after 4.5 months. The same reports will be submitted for Phase 2: inception report after one month of beginning Phase 2, a midterm report after three months, a draft final report after five months and a final report after 5.5 months.
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/42099-012/business-opportunities

Timetable

Concept Clearance 04 Nov 2008
Fact-finding 07 Nov 2008 to 17 Nov 2008
Management Review Meeting
Approval 15 Dec 2009
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

TA Amount (US$ thousand)

Approval Number Approved Amount Revised Amount Total Commitment Uncommitted Balance Total Disbursement Undisbursed Balance

Contacts and Update Details

Responsible ADB Officer Yasushi Hirosato (yhirosato@adb.org)
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Indonesia Resident Mission
Executing Agencies Ministry of Education and Culture
Dr. Djoko Santoso

Links

Project Website http://www.adb.org/projects/42099-012/main
List of Project Documents http://www.adb.org/projects/42099-012/documents