INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3947. Date ISDS Prepared/Updated: 04/20/2009 I. BASIC INFORMATION. A. Basic Project Data

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date ISDS Prepared/Updated: 04/20/2009 I. BASIC INFORMATION A. Basic Project Data INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3947 Country: Indonesia Project ID: P Project Name: Life Skills Education for Employment and Entrepreneurship (LSE3) Task Team Leader: Pawan G. Patil Estimated Appraisal Date: May 11, 2009 Estimated Board Date: August 26, 2009 Managing Unit: EASHD Lending Instrument: Specific Investment Loan Sector: Vocational training (50%);Adult literacy/non-formal education (50%) Theme: Other human development (P);Other social protection and risk management (P);Other rural development (S) IBRD Amount (US$m.): IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 5.00 Foundation/s (identified) B. Project Objectives [from section 2 of PCN] The overall Project Development Objective (PDO) of LSE3 (formerly BEKERJA - Better Employment Knowledge and Entrepreneurship to Revitalize Job Access for Indonesian Youth) is to increase employment and earnings of unemployed youth through provision of demand-driven life skills education that incorporate partnerships between government, industry, and training providers. C. Project Description [from section 3 of PCN] The proposed project is comprised of three fully integrated components which in tandem aim to increase the quantity and quality of graduates from LSE training providers ensuring graduates emerge with the specific vocational skills and competencies demanded by the respective vocational areas into which they will be placed, and or the appropriate entrepreneurial or selfemployment skills. To achieve relevance and sustainability in the linking and matching of training courses to the needs of industry the project in parallel focuses on developing a quality assurance system. When fully operational the quality assurance system will feature certification of LSE training graduates by certified instructors and assessors from accredited training

2 institutions with excellent training materials and best practice training methods and management practices reflecting good governance principles. 1. Component 1: Life Skills Education (Estimated US$37.6 million equivalent) will provide unemployed youth with increased access to quality LSE specifically tailored to the demands of the job market and in so doing lead to employment in the domestic or foreign, formal or informal sectors. Sub-component 1.1 will provide financial incentives for private LSE training providers to expand the number of LSE opportunities for targeted youth leading to formal employment either in the domestic or foreign employment sectors. Incentive payments will be based on the number of eligible participants whom the training provider places in employment in the fulfillment of job orders. Sub-component 1.2 will provide financial support for selected private training providers offering LSE geared towards entrepreneurship and self-employment. LSE3 will finance; training courses, including training provided through placement with employers for short-term practical experience (as in a limited apprenticeship or mentoring model), seed or venture capital, and will foster initiatives which facilitate closer linkages between traditional credit providers and successful young entrepreneurs or the self-employed seeking to expand their business. Sub-component 1.3 will provide incentives for private LSE training providers to increase the quality of LSE opportunities for targeted youth leading to informal employment in the foreign employment sector, (domestic helper). Specifically LSE3 will support the development, and introduction as an integral requirement of LSE training, modules which better inform domestic workers of their rights and responsibilities, including health, safety and social protection, and which enrich their understanding of the language and culture of their employment destination, and which provide them with the financial literacy to better manage their affairs and to maximize the benefits they derive from the employment contract. Component 2: Institutional Strengthening for Quality Assurance (Estimated US$9.9 million) will support the creation of a regulatory framework so that the training providers offering LSE have appropriate incentives to ensure that participants completing their courses do so with a level of competency commensurate with national standards. Sub-Component 2.1. will fund workshop, technical assistance and training to develop a set of competency standards and to implement those standards into the existing curriculum of LSE training providers and also to pilot their application in order to improve the quality of LSE training graduates. Specifically this subcomponent will support the following activities: (i) Develop a set of competency standards required to define a vocational skill set. Once standards are ratified by the Agency for National Education Standardization (Badan Standarisasi Nasional Pendidikan, BSNP), and the Minister has signed the standards into effect, LSE3 will assist the promulgation of national competency standards amongst LSE training providers, employer groups and profession associations as the entry level benchmark for the certification of workers in a given vocational area; (ii) Develop training modules for LSE. Training modules developed will be made available initially to selected training providers to trial the teaching materials developed and pilot innovative teaching methods to improve the quality of training and to ensure graduates attain the appropriate vocational competency standards. After materials have been field trialed this sub-component will finance the printing and dissemination of modules. One master hard-copy would be printed and disseminated to each training provider. Modules will also be posted on the LSE3 website in PDF format for free download by training providers. In short, this sub-component will support

3 the improvement of training curriculum, materials and instruction; (iii) Identify the specific needs of LSE instructors employed by private training providers require to efficiently use the teaching materials and teaching methods and to produce graduates with the vocational competency standards. During the course of the project through this series of activities the set of skills, knowledge and experience required to become a certified instructor are expected to become industry standards. In brief, this activity will support the improvement of instructors competence. Sub-component 2.2 will provide development/stimulant grants to selected Competence Certification Institutions (LSK) established by profession associations. This is to ensure LSK and its competency test place (TUK) with the responsibility for the certification of the competencies developed under sub-component 2.1 have the appropriate human and financial resources. Moreover, the grants will require LSKs to build partnership with the industry so that they will be able to assist training providers in channeling their graduates to employment in the labor market. Sub-component 2.3 will fund workshops, technical assistance and short course training to build the management capacity of LSE training providers. An integral part of strengthening management will be the institutional accreditation. This sub-component will work with Board of National Accreditation for Non Formal Education (BAN-PNF) to ensure that the initiatives supported in Component 2 can lay a sound foundation for the development of institutional accreditation. Component 3: Program Management, Integration and Sustainability (Estimated US$7.5 million) will support activities to ensure the achievement of the Project development objectives in accordance to agreed procedure and mechanism and support the integration of the LSE3 into implementing unit, the Directorate of Course and Institution Development, DG PNFI. It comprises four key elements. Sub-component 3.1 will cover the incremental operational costs associated with the implementation of the project in accordance with the Anti Corruption Action Plan (ACAP), at the central and regional level. Sub-component 3.2 will finance a Public Awareness and Media Campaign to ensure that stakeholders and beneficiaries are aware of their rights and responsibilities under the project. Sub-component 3.3 will fund Development Studies to guide strategic planning for expanding project initiatives to a national scale. This subcomponent will finance ad-hoc studies that provide policy makers with immediate feedback on project implementation. Sub-component 3.4 will finance routine Monitoring and Evaluation and comprise; technical assistance to design a management information system (MIS) for Non Formal Education Institutes that will monitor the progress of recruitment, skills training, certification and placement LSE graduates in employment, the design of instruments, supervision and internal reporting, and will include the establishment of a Central Independent Monitoring Unit (CIMU). D. Project location (if known) Agreement was reached during the preparation mission that LSE3 is by nature a central project closely aligned with the mandate of the central Government. Provision of Life Skills Education grants will be piloted in two phases in potential provinces which meet the agreed criteria (including high unemployment rate, availability of qualified Training Providers and commitment of the local government to participate in the program). The provinces meeting such criteria are: provinces located in Java (Banten, DKI Jakarta, West Java, Central Java, DI Yogyakarta, East Java) and Bali; and some provinces located outside Java and Bali Islandsâ West Nusa Tenggara, East Nusa Tenggara, South Sulawesi, North Sumatra, South Sumatra and Lampung.

4 As agreed during preparation mission, the first Phase ( ) will be implemented in provinces in Java and Bali Islands. In the second Phase ( ), the project will then expand to Provinces outside Java and Bali. E. Borrower s Institutional Capacity for Safeguard Policies [from PCN] The Executing Agency (DG Non Formal Education) is currently implementing another Bankfinanced operation. They are familiar with Bank Safeguard Policies. F. Environmental and Social Safeguards Specialists Mr Isono Sadoko (EASIS) Ms Indira Dharmapatni (EASIS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) C - Not Required The project solely includes skills trainings and development of education standards and regulatory frameworks. It will have no activities which potentially affect the environment; accordingly it is rated category C. An environment impact plan is not required. Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) OP/BP 4.10 is triggered because the project may deliver benefits to Indigenous Peoples (IPs) in some provinces. Given the uncertainty about the impact of the project on IPs, the project will develop an Indigenous Peoples Planning Framework (IPPF), which will include the elements described in Annex C of OP Involuntary Resettlement (OP/BP 4.12) OP/BP 4.12 is not triggered because the project does not involve land acquisition or involuntary resettlement, and project activities will not result in loss of income sources or means or livelihood. Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Environmental Category: C - Not Required III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 06/20/2008

5 B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: N/A C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. An IP assessment will be undertaken prior to Appraisal. IV. APPROVALS Signed and submitted by: Task Team Leader: Mr Pawan G. Patil 04/17/2009 Approved by: Regional Safeguards Coordinator: Mr Panneer Selvam Lakshminarayanan 04/20/2009 Comments: Sector Manager: Mr Eduardo Velez Bustillo 04/20/2009 Comments: 1 Reminder: The Bank s Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.

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