PNPM Rural Implementation Support Quarterly Progress Report: July to September Summary Information Status Activity Number Task Team Leader(s) Executg Agency(ies) Start date to Closg Date Geographic Coverage Active P111965 (TF092138) Susanne Holste (sholste@worldbank.org) Sentot Satria (ssastria@worldbank.org) PSF 14 May 2008 to 31 December (68 months) National, coverg 57,000 rural villages 5,100 sub-districts 393 districts 32 provces. Approved Budget US$ 5,120,000 Disbursements durg the Quarter Disbursements US$ 92,966 US$ 5,522,848 (US$ 564,642 has been pre-fanced by the PSF Operations fund and PSF Parent fund to support project activities while waitg for approval for the top-up proposal). Progress Project Overview: PNPM is the largest community-driven development program Indonesia and one of the largest such programs the world. Sce its establishment, the program s coverage has expanded dramatically, from 2,600 sub-districts 2008 to more than 5,000 sub-districts by 2012. The program contues to produce good results, with the provision of direct control over decision-makg and resources to communities leadg to improved governance and socio-economic conditions. However, the rapid expansion has placed significant stra on the program s management and governance frameworks. To address this, ongog supervision support, both from the GOI and development partners, is required. An implementation support trust fund was approved May 2008 to facilitate the provision of additional supervision and reportg for PNPM s core programs and thus to ensure full supervision coverage. In 2009, a separate trust fund was established to facilitate improvements to the supervision of PNPM- Urban. In 2010, two separate projects under a sgle trust fund were established, with these projects
workg close cooperation, these beg: 1) Implementation Support and Monitorg of PNPM-Rural and the two Papua-based itiatives, PNPM-Rural/RESPEK and PNPM Agriculture; and 2) Field-Based Implementation Support and Governance and Fiduciary Support. The Implementation Support team provides national-level oversight; conducts thematic reviews; and engages higher level policy dialogue with PNPM-Rural s implementg agency, Pemberdayaan Masyarakat dan Desa (PMD), and PNPM- Rural s steerg committee, Pokja Pengendali. The project assists PMD to formulate recommendations, strategies and policies on the basis of technical assistance and thematic reviews. The field-based supervisory and fiduciary support provides portfolio-wide implementation assistance and engages with local-level project stakeholders. The field-level analyses are then aggregated to assist PMD to identify issues that need to be addressed and opportunities for pilot development. In order to crease the effectiveness of the technical assistance provided to PNPM, July, the JMC approved a jot proposal for Implementation Support to PSF (this trust fund), Field Operations, Governance and Fiduciary Support (TF010808), and Technical Assistance to Kemenko Kesra and Bappenas (TF010700). The tegration of these separate trust funds is beg processed ternally with the World Bank and is expected to be completed by end of October. Overall Progress Towards Development Objective: The rapid expansion of PNPM Rural to national scale has put considerable stra on the program's management and governance frameworks. Five previously identified key areas requirg improvement are as follows: 1) ability of PMD to appropriately manage the program; 2) redesign of the Management Information System (MIS); 3) strengtheng of the Complats Handlg System; 4) reforcg formal and formal fiduciary controls; and 5) improvg facilitation. From the five key areas of program management strengtheng that have identified, some have well-progressed, while some have not. While the redesign of the MIS and improvement of the Complat Handlg System have progressed relatively well, the ability of PMD to manage the program appropriately is still lackg, and overall program facilitation remas weak. The fiduciary control has somewhat improved, but more needs to be done, particularly to realize the planned scope of ternal audit and to strengthen the capacity of PNPM actors the field. With the support of the PSF, PMD has made progress addressg these issues the followg areas: The redesign of the MIS has progressed from the diagnostic phase to the design phase. In addition, the existg databases have been stabilized to provide more reliable data. Data is available for most dicators, although there are still concerns regardg delays and the validity of data. On the basis of this data, ongog evaluations of project impacts and outcomes are beg conducted by the PSF partnership with the GOI, with the data facilitatg the production of analytical reports of very high quality; The web-based Complats Handlg System (CHS) is now fully functional. Not countg valid and complete complats, the program has received and processed 3,135 complats sce January. Of these, 1,968 (63%) have been resolved, while the remag 1,167 are still beg addressed. Of these remag complats, 951 are now classed as formal cases and are beg handled by the responsible parties; PMD is applyg sanctions for a higher proportion of fraud and/or corruption cases. At least five major such cases have been identified different sub-districts, with these cases volvg the misuse of funds excess of IDR 1 billion each case. All of the five sub-districts have been suspended the period from June to August 2030, with the exact date of the suspension varyg each case. In addition, as of August, 39 sub-districts have listed as havg a Potential for Problematic
Locations due to open cases these areas. Sub-districts this category are not permitted to distribute funds to the TPK until their specific cases are resolved. The number of sub-districts that are thus categorized has decled from 211 January. The PMD, through the NMC, RMC and facilitators, has been strivg to assist communities to resolve associated issues. The PSF contues to support agencies of the GOI, specifically Kemenko Kesra and TNP2K, to formulate PNPM Roadmap action plans. In particular, the PSF has facilitated this process the followg areas: The formulation of key performance dicators for all PNPM programs: The KPIs have now been agreed upon and an formally adopted by TNP2K for Implementation throughout PNPM programs; The formalization of the legal status of community stitutions and the identification of options for a mechanism for the fiscal transfer of block grants; The formulation of a plan to tegrate community empowerment programs and to facilitate improved ter-governmental coordation. Key Developments durg the Quarter: As part of the proposed adaptive approach for PNPM operations remote areas, PMD has begun to recruit Technical Assistants to the Papua Desk. So far, three of a total of five planned Technical Assistants have been contracted, with these assistants scheduled to commence their assigned duties on October 1,. A workshop Papua, which has been planned sce April, will be held on November 8-9,. This workshop will volve extensive consultations with local stakeholders, on the basis of which an actionable work plan will be developed; A jot mission to four provces (Aceh, Banten, Sulawesi Tenggara, and Maluku) was conducted by the PSF cooperation with PMD, NMC and RMC. This mission focused on implementation challenges remote and extreme areas and the phased-out sub-districts. The planng of this mission volved a participatory approach which put was sought from all stakeholders. This methodology will contue to be utilized for subsequent missions; The redevelopment of the MIS has commenced; A comparative study volvg visits to Nepal and India took place early September,. The aim of this study was to troduce models for community driven approaches to policymakers and implementers of livelihoods development programs South Asia. Representatives from PMD, Bappenas, Pokja Pengendali and PSF took part this visit; Two coordation meetgs were held, the first July and the second August. These meetgs were chaired and itiated by Pokja Pengendali and were tended to facilitate better communication and improved coordation between PNPM stakeholders. Critical Challenges: Three critical challenges that were first identified the first quarterly report for FY rema relevant. To this pot, no significant and systematic improvements have been achieved these areas: The proposed adaptive approach for PNPM operations remote areas has yet to be implemented. Although a schedule has been set for a workshop on this approach, until concrete measures are actually implemented the field, this failure represents a real risk to the implementation of the program these areas; The plan to establish a Jot Secretariat at PMD to coordate the various PNPM programs under
its mandate has put on hold pendg official approval from the Secretary of the DG-PMD; PMD contues to be constraed by a lack of staff to manage an creasgly complex program. The complexities will tensify with the implementation of the PNPM Roadmap, makg this constrat even more significant. Another challenge relates to the process of revisg the Project Operations Manual (PTO) for PNPM Rural, which has been underway for more than eight months. The NMC still need more time to corporate all suggested revisions to the document. This has exposed the project to fiduciary risks. Activities Planned for the Next Quarter: Falization of the revised PTO by the end of October ; Contuation of the regular coordation meetgs hosted by Pokja Pengendali; The holdg of the workshop Papua on November 8-9, ; The implementation of several trag activities, cludg: 1) refresher trag for district-level facilitators; 2) pre-service trag for the newly recruited busess development facilitators; 3) preservice trag for the PjOK; and 4) trag for the Local Inspectorate. A workshop to falize the trag modules will take place Jakarta on October 21-27,.
Basele for Project Development Objective: To provide technical support, guidance and supervision to the overall PNPM Rural activities through fieldbased monitorg and support, governance, fiduciary, M&E. PMD s capacity to manage the various PNPM operations under its mandate is enhanced PNPM operations PMD managed silos Establishment of a Jot Secretariat facilitated MIS & CHS overhauled TOR & SOP for Secretariat falized & endorsed MIS redesign underway CHS redesign completed. Delays establishment of Jot Secretariat Jot Secretariat established MIS and CHS redesign completed Diagnostic process of MIS redesign completed. MIS redevelopment starts. KPIs and control data identified. New CHS works effectively Delay establishment of Jot Secretariat Plans for Jot Secretariat on hold pendg official PMD letter Field supervision, system reviews & studies help shape the policy dialogue on PNPM Rural and PNPM Mandiri -- Field fdgs translate to a strategic reform agenda for PNPM Rural PSF puts corporated to the PNPM Roadmap 5 key reform areas identified with PMD/GOI Results from 2011/2 studies serve as reference for PNPM 2012-2014 design PSF puts corporated PNPM Roadmap On track PSF puts corporated PNPM Roadmap action plans PSF assigned as focal pot for 3 of 12 Roadmap actions: - KPI - Community stitution legal status - Integration concept On track PSF will contue to provide policy and operational advice to support the formulation of PNPM Roadmap action plans (expected completion December ) PSF focal pot for 3 of 12
Basele for Roadmap actions Component 1: Increased risk-based implementation support to the PNPM Rural, to assess the effectiveness of existg management systems and assist the strengtheng of these systems as needed # of risk-based supervision p.a 4 (2011) 6 p.a. 6 (2012) On target 6 p.a. 6 provces (Papua, West Sumatra- Mentawai, Aceh, Banten, Southeast Sulawesi, and Maluku) have visited based on the associated risks to these areas. On target The 6 provces visited 3 different missions. Another mission will take place November, to the Papua highland. Follow-up on field fdgs with PMD N/A Quarterly followup with PMD Field fdgs on key aspects of implementation performance regularly analyzed & discussed with PMD and PNPM stakeholders On target Quarterly update to PMD on field fdgs with its follow-up recommendations Same as cumulative achievement On target # & type of thematic studies & performance conducted 1 -- N/A (as needed) 6 studies completed; 3 ongog -- 4 studies 0-4 The draft budget is beg reviewed by the team 1 Some of these studies are co-fanced by other PSF trust funds.
Basele for Strategy for economic clusion developed N/A Strategy for economic clusion developed by A rapid review on RLF implementation 16 provces & a RLF pilot 4 provces (by PSF Field Team and WB- PSD ) Delays Concept paper developed through series of workshops with stakeholders Initial concept discussed Delays Discussions with GOI on concept durg PNPM 2012-2015 preparation; concept paper expected late Practical tools developed to improve contract management & oversight N/A New contract monitorg tools commonly used Tool falized and shared with PMD Delays PMD staff traed & new tools used for improved contract management Tool troduced to PMD On track A discussion with PMD on the use of the tool will be itiated Impact of a more comprehensive approach to capacity buildg & facilitation is demonstrated N/A Enhanced Empowerment Experiment (EEE) completed Design ongog On track EEE proposal falized for review by the JMC. Delayed Delayed Concept will be combed with implementation support, capacity buildg for local governments, and Frontle Services Component 2: Increased stakeholders volvement project preparation and implementation support. Jot government and donor review missions 2 missions p.a. 3 missions p.a. 5 2012 +2 3 jot thematic missions p.a. 1 jot implementation support mission conducted to 4 provces with -2 (On track) Aceh, Banten, Sulawesi Tenggara, and Maluku. Another 2 jot missions to
Basele for various focuses other remote areas is planned quarter 3 and 4 of. Intensive dialogue with PMD and other government stakeholders on PNPM -- Monthly meetgs Meetgs at least once a month On track Monthly coordation meetgs with PMD & ad-hoc workshops to discuss specific issues, as needed Last coordation meetg on governance issues held February. A meetg on Papua was held early September, and durg the meetg a few more issues on the overall program implementation was also discussed No scheduled monthly meetg, but more on an cidental basis, which usually occurs once a month Due to unavailability of PMD and their unclear schedule, no formal monthly coordation meetg held, but frequent formal meetgs Customized approach developed for remote areas (e.g. Eastern Indonesia), startg with Papua -- Customized approach for remote areas, startg with Papua Implementation Review of PNPM Rural Papua, which led to the dvp of 6 strategic plans for future engagements Papua New policy for transportation allowance to remote areas, cludg the Ongog (delays) Jot Papua Workg Group established Workshop organized to dissemate the new approach for Papua Papua workg group established by JMC January Technical Assistance for Desk Papua has recruited (3 of 5 planned) and start work with PMD on October 1, Delayed The new policy of the creased transportation allowance has not yet take place.
Basele for support of 'atcost' reimbursement mechanism