Indonesia: Technological and Professional Skills Development Sector Project [Loan 1792-INO] | Asian Development Bank

Indonesia: Technological and Professional Skills Development Sector Project [Loan 1792-INO]

Evaluation Document | 30 November 2011

Evaluates the performance of the project, which aimed to improve international competitiveness and help achieve sustainable economic growth to contribute to poverty reduction based on gender, social, and geographic equity in Indonesia.


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.

Overall assessment

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.


  • The competitive-based funding through block grants is a useful mechanism to upgrade the quality of higher education by promoting transparency and accountability, and building a strong sense of ownership among higher education institutions.
  • The policy of selectively allowing private higher education institutions to access government funds on a competitive basis as block grants rather than as loans is an efficient investment.
  • Quality assurance can be further strengthened by complementing a component that verifies the quality of the product such as a national licensure examination system.
  • Initiatives to link the higher education institutions to foreign universities and polytechnics, as well as international or regional networks in higher education have started at some institutions that could be encouraged in higher education institutions.
  • Higher education institution may also consider looking into strengthening English proficiency.
  • Institutionalizing linkages between educational entities and industries nationally and at the higher education institution level can be a good practice.
  • Integrated monitoring and evaluation system-management information system forhigher education institutions.


  • Basic Data
  • Executive Summary
  • Introduction
  • Design and Implementation
  • Performance assessment
  • Other Assessments
  • Lessons Drawn