RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING IMPROVING TEACHER PERFORMANCE AND ACCOUNTABILITY (KIAT GURU) APPROVED ON JUNE 27, 2016

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1 Public Disclosure Authorized The World Bank REPORT NO.: RES28016 RESTRUCTURING PAPER Public Disclosure Authorized ON A PROPOSED PROJECT RESTRUCTURING OF IMPROVING TEACHER PERFORMANCE AND ACCOUNTABILITY (KIAT GURU) APPROVED ON JUNE 27, 2016 TO BURSA PENGETAHUAN KAWASAN TIMUR INDONESIA (BAKTI) Public Disclosure Authorized FOR THE BENEFIT OF THE REPUBLIC OF INDONESIA SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EAST ASIA AND PACIFIC Public Disclosure Authorized Regional Vice President: Country Director: Senior Global Practice Director: Practice Manager/Manager: Task Team Leader: Victoria Kwakwa Rodrigo A. Chaves Ede Jorge Ijjasz-Vasquez Kevin A Tomlinson Dewi Susanti

2 ABBREVIATIONS AND ACRONYMS AF BETF CEM CSC CY DGTEP DFAT EAP FY GA GoI ISR IRI KPI LSP MDTF MoEC NGO PCF PDO PPM RETF RF TA TNP2K Tunjangan Khusus Additional Financing Bank Executed Trust Fund Community Empowerment Mechanism Community Score Card Calendar Year (January until December) Directorate General for Teachers and Education Personnel Australian Department for Foreign Affairs and Trade East Asia Pacific Fiscal Year (July until June) Grant Agreement Government of Indonesia Implementation Status and Results Report Intermediate Results Indicator Key Performance Indicator Local Solutions to Poverty Multi-Donor Trust Fund Ministry of Education and Culture Non-Government Organization Project Community Facilitator Project Development Objective Pay for Performance Mechanism Recipient Executed Trust Fund Results Framework Technical Assistance National Team for Acceleration of Poverty Reduction, Secretariat Vice President Office Teachers Special Allowance

3 BASIC DATA Product Information Project ID P Original EA Category Not Required (C) Approval Date 27-Jun-2016 Financing Instrument Investment Project Financing Current EA Category Not Required (C) Current Closing Date 31-Dec-2017 Organizations Borrower Bursa Pengetahuan Kawasan Timur Indonesia (BaKTI) Responsible Agency Tim Nasional Percepatan Penanggulangan Kemiskinan (TNP2K) Project Development Objective (PDO) Original PDO The Project Development Objective is to improve the presence and service quality of primary school teachers in targeted areas. The objective will be reached by making teachers more accountable and by empowering communities to participate in education. Summary Status of Financing TF Approval Signing Effectiveness Closing Net Commitment Disbursed Undisbursed TF-A Jun Jun Jun Dec Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No

4 I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The most recent Implementation Status Report (ISR) archived on August , rated implementation progress and progress toward achievement of the Project Development Objective (PDO) as Moderately Satisfactory. The project was originally designed to serve 10 sub-districts selected from five districts in Sumatra-Java, Nusa Tenggara, Kalimantan, Sulawesi and Maluku-Papua. Ten months after approval of the grant, the Ministry of Education and Culture (MoEC) issued two key regulations related to the project: (a) Decree No 99/P/2017 on Priority Program in Delivery of Tunjangan Khusus (Teachers Special Allowance), which identified this project, KIAT Guru, as a MoEC priority program; and (b) Decree No 11788/B/HK/2017 which provided technical guidelines for its implementation. These two decrees enabled the payment of Tunjangan Khusus conditioned on teacher performance (either teacher presence or service performance). They also empowered community representatives to hold teachers accountable in pilot schools. 2. These policy changes are integral to the success of the project, but their scope and timing also brought implementation challenges. They expanded the project from 10 to 33 sub-districts, which in turn, resulted in cost increases and implementation delays for having to cover a far greater geograhical area. The decrees were also expected to be issued in January 2017 but came only in April 2017, thereby reducing the time available to implement the project s Pay for Performance Mechanism (PPM) from 11 months to six. The PPM conditions the payment of MoEC s teacher allowances on their performance -- a key tenet of the project. These delays resulted in inadequate exposure time for teachers to modify their behavior to meet project and community expectations. The shorter timeline also does not allow for implementation of a proper exit strategy. 3. The project was designed in three phases: (a) an initial phase to set up service agreements and user committees in the particpating subdistricts; (b) a implementation phase; and (c) an evaluation phase. As of the end of the Mid- Term Review conducted in late May 2017, the initial phase had been completed in 94% of participating schools and the implementation phase had started in 82% of schools. The evaluation phase is ongoing now, with the aim of completing evaluation in 74% of the schools by December II. DESCRIPTION OF PROPOSED CHANGES 4. This Restructuring Paper seeks the approval of the Country Director for a Level 2 restructuring for which the Bank has received letters from the Executive Secretary of the National Team for Acceleration of Poverty Reduction, Secretariat Vice President Office (TNP2K) dated July 10, 2017, and from the Director General for Teachers and Education Personnel (DGTEP) at the Ministry of Education and Culture (MoEC) dated August 18, First, the restructuring proposes to extend the closing date of the Grant Agreement from December 31, 2017 to June 29, The extension will expose community members and teachers to the Community Empowerment Mechanism (CEM) and the PPM for a minimum of one year. It will also enable the project to pilot two different exit strategy models for community facilitation: (i) a one month handover period from the Project s facilitators to the village cadres and government officials, with continued technical assistance (TA) at the sub-district level, or (ii) a four month handover period from the Project s facilitators to the village cadres and government officials, with continued TA at sub-district and village levels. The learning from these two strategies will inform the Project s sustainability, the government s plan for the scaling up the Project, and subsequent operations involving community participation.

5 5. Second, the restructuring proposes an Additional Financing (AF) of $1,364,000 which will increase the Grant amount from US$3,623,000 to US$4,987,000. The AF will cover additional TA to the MoEC and five pilot district governments, implementation of CEM activities in 203 pilot schools, and PPM activities in 135 pilot schools. In addition, village cadres and community members in 203 schools will receive additional capacity building to enable them to independently hold teachers accountable and improve the sustainability of the CEM and PPM activities after closing. As part of the RP, a third component TA and Project management will be added to clearly demarkate project costs associated with the beneficiaries of the CEM and PPM components, from project management and TA costs. The implementation schedule and disbursement estimates will be updated to accommodate the extension and AF. Minor changes will be made to the eligible items. The project s economic and financial analysis is also updated. No changes to the institutional arrangements are necessary. 6. Third, this restructuring proposes changes to the Results Framework (RF) to better track progress towards achieving the PDO. The proposed updated RF will provide better and more accurate data to inform PDO progress. 7. The Restructuring will be complemented with a Bank Executed Trust Fund (BETF P160640) for US$450,000 to implement an endline survey. This analytical work is mapped to Education PASA on Supporting 12 Years Quality Education for All (P157380). It will also incorporate the Project s analytics into a five-year study funded by Research on Improving Systems in Education. The endline survey will evaluate the effectiveness of the CEM and PPM in improving teacher presence and service quality and will provide evidence-based policy recommendations to the government. I. SUMMARY OF CHANGES Changed Change in Results Framework Not Changed Change in Components and Cost Change in Loan Closing Date(s) Additional Financing Proposed Change in Disbursement Estimates Change in Procurement Change in Implementation Schedule Change in Implementing Agency Change in Project's Development Objectives Cancellations Proposed Reallocation between Disbursement Categories

6 PDO_IND_TABLE The World Bank Change in Disbursements Arrangements Change in Overall Risk Rating Change in Safeguard Policies Triggered Change of EA category Change in Legal Covenants Change in Institutional Arrangements Change in Financial Management Other Change(s) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators Improved teacher presence score Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value Revised Date 31-Aug Aug Apr-2018 Improved teacher service quality score Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value Revised Date 31-Aug Aug Apr-2018 Intermediate Indicators IO_IND_TABLE Relevant government regulations issued Unit of Measure: Yes/No Indicator Type: Custom

7 Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 31-Aug Aug Apr-2018 Number of Community Score Card agreed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value Revised Date 31-Aug Aug Apr-2018 Cumulative number of village monthly meetings conducted Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value Revised Date 31-Aug Aug Apr-2018 Cumulative number of end-of-semester meetings conducted Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value Revised Date 31-Aug Aug Apr-2018 Percentage of Tunjangan Khusus allowance for teachers assigned to PPM models are paid according to KIAT Guru formula Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value Revised Date 31-Aug Aug Apr-2018 Number of MoEC and district government officials receiving capacity building Unit of Measure: Number Indicator Type: Custom

8 OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_LOANCLOSING_TABLE The World Bank Baseline Actual (Current) End Target Action Value New Date 31-Aug Aug Apr-2018 Number of Village Cadre and User Committee members received capacity building Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value New Date 31-Aug Aug Apr-2018 COMPONENTS Current Component Name Community Empowerment Mechanism Current Cost (US$M) Action Revised Pay for Performance Mechanism Revised TOTAL 3,623, New Proposed Component Name Community Empowerment Mechanism Pay for Performance Mechanism Technical Assistance and Project Management Proposed Cost (US$M) ,987, LOAN CLOSING DATE(S) TF Status Original Closing Revised Closing(s) Proposed Closing Proposed Deadline for Withdrawal Applications TF-A2955 Effective 31-Dec Jun Oct-2018 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE ADDITIONAL FINANCING Source Currency Amount USD Equivalent Indonesia - Program for Community Empowerment(IDPN) USD 1,364, ,364,000.00

9 Existing Net Commitment USD Amount 3,620, Total 4,984, OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed ,160, , ,460, ,200, ,155,

10 IMPROVING TEACHER PERFORMANCE AND ACCOUNTABILITY (KIAT GURU) RESTRUCTURING PAPER A. SUMMARY This Restructuring Paper seeks the approval of the Country Director for a Level 2 restructuring that would: (a) extend the Grant closing date from December 31, 2017 to June 29, 2018; (b) provide additional financing (AF) of US$1,364,000 needed to run the project six additional months; (c) update the project costs and disbursement estimates; (d) reallocate grant proceeds; and (e) update the Results Framework (RF). B. PROJECT STATUS 1. The Grant Agreement between the World Bank and Yayasan BaKTI as the implementing agency became effective on June 29, Five months later, GoI officials and the District Heads from the five pilot locations signed Memoranda of Understanding (MoU) defining the commitments, roles, and responsibilities of the signatories. Together they identified and approved 270 primary schools for the pilot, with Community Empowerment Mechanism (CEM) activities in 203 schools and Pay for Performance Mechanism (PPM) activities in 135 schools (through RETF), and impact evaluation activities in 270 schools (through BETF). (The remaining schools are part of the project s control group.) The baseline survey conducted by the Bank identified a 25% teacher absence rate in the 270 schools. 2. The Project has two components, one for CEM and one for PPM. The CEM provides community members with an explicit role to monitor and evaluate teacher service performance and to ensure teacher accountability. It consists of three phases: (a) an Initial Phase to set up the Service Agreement (SA), Community Score Card (CSC), and User Committee (UC); (b) Implementation Phase; and (c) Evaluation Phase. The Intermediate Results Indicators (IRIs) are aligned with these phases. As of end July, the Initial Phase had been completed in 200 of 203 schools (98% compared to an end target of 80%). The Implementation Phase of CEM had been implemented in 188 of 203 schools (92% compared to an end target of 75%). The Evaluation Phase of CEM is on-going in 173 of 203 schools (85% compared to an end target of 75%), and is planned to be completed by end September The PPM links the payment of the Tunjangan Khusus (Special Allowance) with teacher presence or teacher service quality. It will also support activities to engage stakeholders and inform policy. This component has two IRIs: (a) Issuance of relevant government regulations, and (b) Percentage of Tunjangan Khusus for teachers assigned to PPM models who are paid according to the KIAT Guru formula. In April 2017, the MoEC issued two decrees: one on Tunjangan Khusus Delivery, and one on Technical Guidelines for Implementation of KIAT Guru as MoEC Priority Program. These enabled the payment of the MoEC teacher allowances (in this case the Tunjangan Khusus) to be conditioned on their performance (in this case either teacher s attendance or service performance) in the 135 pilot schools. They also empowered community representatives to hold teachers accountable in 203 pilot schools. By end July 2017, 95 out of 135 (70% compared to an end target of 75%) schools had started the evaluation process for the Tunjangan Khusus to be paid based on either teacher s attendance or service quality. 4. Following the May 2017 Mid-Term Review, the Project was rated Moderately Satisfactory (MS) for both progress towards the PDO and Implementation Progress (IP). The rating for progress towards the PDO reflects the fact that there is no data or survey results that would attribute the project to any improvement in the presence

11 and service quality of primary school teachers in the project areas. The MS IP reflects the fact that the project is about six months behind due to delays in MoEC s issuance of the necessary policy guidance and the geographical challenges of working in remote areas. C. PROPOSED CHANGES 5. The primary purposes of this RP are to extend the Grant closing date and to approve AF of US$1.364 million along with ancillary changes. First, with regard to the extension, the RP would extend the Grant Agreement (TF0A2955) closing date by six months from December 31, 2017 to June 29, The Project encountered implementation delays when changes on relevant government policies related to the Special Allowance resulted in the Project s expansion from 10 to 33 sub-districts. This expansion increased costs and delayed implementation due to the difficulty of increased geographical coverage. Additional delays resulted from MoEC issuing key policy regulations in April 2017 instead of January 2017 as originally foreseen. These delays reduced time to implement the PPM from 11 months to six. This would be the first extension of the closing date. 6. The proposed extension serves several purposes. First, teachers receiving Tunjangan Khusus under the PPM will be exposed to the new policy for 14 months instead of just eight months, giving them longer to adjust their behavior performance in line with agreed standards. Second, the extension will allow the testing of two exit strategy models for the CEM in 203 pilot schools. The implementation of CEM has been conducted by Project Community Facilitators (PCFs) hired by Yayasan BaKTI. Recent studies have shown that projects successfully implemented by Non Government Organizations (NGO) do not necessarily achieve the same results when implemented within the government system. KIAT Guru uses a hybrid implementation system, whereby the PPM is implemented within the government system, while the CEM is implemented by an NGO. The role of the PCFs, among others, includes recruiting village cadres and developing capacities of the cadres and user committee members. The role includes institutionalizing the CEM processes into the government system, for example by piggybacking on reporting system from the school principals to the education departments, by incorporating the role of supervisors instead of the PCFs, and by setting up forums at the village and sub-district levels. As such, handover of KIAT Guru activities from NGO to the government system is important for sustainability, and could provide useful insights for other community development projects. This RP proposes two exit strategy models: (i) with one month of handover period from the PCFs to the village cadres, school principals, and government officials, with continued technical assistance at the sub-district level, or (ii) with four months of handover period from the PCFs to the village cadres, school principals, and government officials, with continued technical assistance at the sub-district and village levels. The 203 pilot schools will be randomly assigned into the two exit strategy models, and the effect of the different assignments on the implementation of meetings at the village level, and the timeliness of reporting to the government system will be monitored and lessons drawn for future projects. 7. Second, the AF of $1.364,000 would augment the Grant proceeds from US$3,623,000 to US$4,987,000. The AF will fund six months of additional TA for particpating subdistricts, the continuation of CEM activities in 203 schools, and PPM activities in 135 schools. In addition, village cadres and community members in 203 schools will receive additional capacity building that will enable them to independently hold teachers accountable. As part of the restructuring, we propose to add a component TA and project management to deliniate costs directly paid for activities with beneficiaries of CEM and PPM activities, from the costs of project management and TA. The table below shows the updated components and costs. The Grant Agreement has only one category for disbursement

12 of all eligible activities at 100%, so no change is necessary. The disbursement estimates will be adjusted to take into account the implementation delays, the new closing date and the AF. The AF will be used to finance continuation of the required services for providing technical assistance and project management supports. Costs by Component (US$) Project Components Original Component Costs Revised Component Costs 1. Community Empowerment Mechanism 2,536,000 1,589, Pay for Performance Mechanism 1,087, , Technical Assistance and Project Management ,243,970 Total Project Costs 3,623,000 4,987, Third, this RP proposes changes to the RF to better track progress towards PDO. The Project Status section above shows that while the project has largely achieved its original IRI, they and the KPIs do not provide hard data that could serve as proxies towards PDO indicators. The proposed changes to the Results Framework are based on indicators that are being tracked by Yayasan BaKTI, but were not included in the original Results Framework. The following changes are proposed, with the new Results Framework presented in Annex 1: a. Change the PDO-level indicator on improved percentage of teacher presence rate to improved teacher presence score. Previously, the baseline for this indicator was based on a survey conducted by the Bank (under BETF P160640). The endline for the impact evaluation will not be implemented by the Bank until after the Project ends. However, the Project has collected data on community evaluation for teacher presence for all 203 pilot schools on a monthly basis, which can proxy for improved teacher presence. The average score for baseline is 65, and an end target of 85 has been agreed. b. Change the PDO-level indicator on improved community satisfaction on teacher service quality to improved teacher service quality score. The baseline score for this indicator has now been collected by Yayasan BaKTI. The score is based on the User Committees assessments on teacher service performance based on Community Score Card indicators. The average score for baseline is 56, and an end target of 85 has been agreed. c. The IRI indicators will be changed to better track intermediate outcomes. Currently, the indicators track project progress through the three phases of implementation, but they do not provide concrete information on what has actually been accomplished. We propose to change the three current IRI-level indicators as follows: i. Change from IRI-level indicator on percentage of villages assigned to CEM models completed the initial phase, to number of Community Score Cards agreed. The Community Score Card is

13 based on Service Agreements being conceded between the provider group (principal and teachers) and the user group (parents and community representatives). The Community Score Card consists of between five to eight service performance indicators for the provider group, one of which has to be an indicator on teacher presence. The Community Score Card is evaluated on a monthly basis by the User Committees, elected to represent parents and community leaders. The establishment of Service Agreements, Community Score Cards, and User Committees mark the completion of the CEM initial phase. A total of 203 Community Score Cards will be completed in all pilot schools by September ii. iii. iv. Change from IRI-level indicator on percentage of villages assigned to CEM models completed the implementation phase to cumulative number of village monthly meetings conducted. The implementation phase of the CEM consists of monthly meetings where the User Committees present the evaluation scores for the provider group on their Community Score Cards, along with the supporting evidence, to the village government representatives and wider communities. A target of 2,000 monthly meetings has been agreed. Change from an IRI-level indicator on percentage of villages assigned to CEM models completed the evaluation phase to cumulative number of end-of-semester meetings conducted. The evaluation phase of CEM happens at the end of each school semester to evaluate Service Agreement, Community Score Card, and User Committee. The meeting is preceded by a focus group discussion with students from the pilot schools to get their inputs on whether or not learning environments at school and at home have improved in the past semester. A target of 350 meetings have been agreed. A revision to type of indicator for the current IRI-level indicator on issuance of relevant government regulations from text to yes/ no. This indicator initially tracked various regulations, decrees, and guidelines issued by the national, district, and village governments to enact and support the Project implementation. However, since all the key regulations for implementation this year have been issued, the issuance of the extensions for next year will be tracked. v. Change the end target and end date for IRI-level indicator on percentage of Tunjangan Khusus allowance for teachers assigned to PPM models are paid according to KIAT Guru formula from seventy percent to eighty five percent, and from December 2017 to April vi. Add an IRI-level indicator on number of MoEC and district officials received capacity building to track technical assistance supports provided to strengthen the capacity of government officials to improve teacher presence and service quality. A total of 375 government officials have been agreed. vii. Add an IRI-level indicator on number of Village Cadre and User Committee members received capacity building to track technical assistance supports provided by the Project to strengthen the capacity of community members to improve teacher presence and service quality.

14 D. APPRAISAL SUMMARY 9. The economic and financial analysis has been revised to account for MoEC s revised commitment and the AF. The AF budget submitted by Yayasan BaKTI continues to use the same unit cost, which was based on standard GoI costs. At the time the Project Paper (PP) was written, MoEC committed IDR 11.8 billion (USD 820,000) in Calendar Year (CY) Since then, for CY 2017, MoEC has added IDR 5.3 billion (USD 400,000), the five pilot districts contributed IDR 1.56 billion (USD 115,000), and the pilot villages contributed IDR 556 million (USD 41,800) to pay for the Project s implementation activities. As of the end of July 2017, 98 of 176 (55%) pilot villages had allocated village funding, with an average of IDR 5.7 million per village. In addition, MoEC has allocated a total of IDR 45 billion (USD 3.3 million) of Tunjangan Khusus to be paid based on the Project s formula for 203 pilot schools. In total, GoI contribution for the Project is at USD 4.75 million. After the AF, every dollar spent on project implementation is matched by 0.95 dollars of GoI investment (compared to 1.25 dollars in the PP). The cost of intervention per village is around IDR million (USD 12,280) per year, compared to IDR 120 million (USD 9,000) per year in the PP. This rate is very high early in Project implementation (Years 1 & 2), but the additional TA and capacity building at the pilot districts, sub-districts, and villages will allow sustainability of the Project activities beyond the closing date. If the pilot districts continue to support the activities, the annual cost per village (Year 3) is around IDR 38.2 million (USD 2,830), compared to IDR 58 million (USD 4,300) in the PP. If the pilot villages continue to support the activities (Year 4 & 5), the annual cost per village is around IDR 8.75 million (USD 650), compared to IDR 8 million (USD 570) per year. Cost of Intervension in Total and per Village Cost of Intervention (total) 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Cost of Intervension (per village) Cost of Implementation (total) Cost of Implementation (per village) Years The most recent Fiduciary Management (FM) implementation support mission, conducted in June 2017, rated FM as Moderately Satisfactory. The Bank found that Yayasan BaKTI as Implementing Agency has adequate internal control system. However, its bookkeeping and filling management need to be improved, especially on synchronization from macro to quickbook application and supporting documents filling from the field offices. The mission noted that cash advance ceiling in Sintang has been increased and the time lag between actual disbursement and reporting, due to geographical challenge, has been addressed. The Bank has received an

15 institutional financial audit report for FY The auditor expressed unqualified (clean) opinion to the financial reports. In accordance with the Project Operations Manual (POM), Yayasan BaKTI has to conduct internal audit at least once a year. The internal audit is scheduled for October As of August 31, 2017, disbursement reached 62%, compared with elapsed time of 72%. The grant has a balance of USD 1.37 million and expected to be fully disbursed by the end of October The most recent Procurement implementation support mission, also conducted in June 2017, rated Procurement performance as Moderately Satisfactory. Procurement rules and procedures under the Project will continue to apply the Bank s Procurement and Consultant Guidelines of Janaury 2011 (Revised July 2014). Generally, implementation has followed the Procurement Plan agreed with the Bank, which has been update according to the new prior review thresholds. Procurement documentation and decisions are of generally good quality. Yayasan BaKTI has actively used the World Bank's new online procurement planning and tracking tools i.e. Systematic Tracking of Exchanges in Procurement (STEP) to prepare the procurement plan, process and monitor the activities (contracts), which are all subject to the Bank s post-review as per the new applicable procurement prior review thresholds. The Bank will continue to provide hands-on support, as needed, in particular for application of STEP. 12. The Environmental and Social Safeguards categorization and policies originally triggered remain the same, and the risk rating of Moderate is unchanged. Since the project covers 203 villages in 5 districts, some of which may be inhabited by indigenous peoples (Masyarakat Hukum Adat), the provisions of OP/BP 4.10 apply. The project will not finance any physical activities nor support technical assistance that will lead to future physical activities or other activities with environmental implications, no separate environmental assessment and instrument is required.

16 No Indicators Corporate Results Indicator Unit of measure ANNEX 1. KIAT GURU: RESULTS FRAMEWORK MATRIX Basel ine Cumulative Target End Target (2018) Frequen cy Data Source/ Method ology Respons ible for Data Collecti on Description/Explanatio n Project Development Objective (PDO): To improve the presence and service quality of primary school teachers in targeted areas. ly 1 Improved teacher presence score (number) Score Quarterly Project MIS BaKTI Community evaluation score for teacher presence. 2 Improved teacher service quality score (number) Score Quarterly Project MIS BaKTI Community evaluation score for teacher service quality. Intermediate Result Indicators Component 1: Community Empowerment Mechanism (CEM) implemented and utilized to measure teachers presence and quality of teaching 1.1 Community Score Card agreed (number) # of score cards Quarterly Project MIS/mo nitoring data, progress reports BaKTI The Community Score Card is agreed by the provider group (principal and teachers) and the user group (parents and community representatives).

17 ly Village monthly meetings conducted (number, cumulative) End-of-semester village meetings conducted (number, cumulative) # of meetings # of meetings Quarterly Annual Project MIS/mo nitoring data, progress reports Project MIS/mo nitoring data, progress reports BaKTI BaKTI User Committees present the evaluation scores along with the supporting evidence, to the provider group, the village government representatives, and wider communities. This meeting happens at the end of the school semester to evaluate Service Agreement, Community Score Card, and User Committee. Component 2: Pay for Performance Mechanism implemented and utilized to strengthen teachers accountability Relevant government regulations issued (yes/ no) Tunjangan Khusus allowance for Yes/ no no yes yes yes % 0% 0% 80% 85% Annual Annual Copies of regulations Project MIS and MoEC; Districts; Villages; BaKTI MoEC; Districts Type of regulations: 1. National-level institutional arrangement 2. National-level regulations on project implementation 3. District-level institutional arrangement 4. District-level regulations on project implementation Percent of eligible teachers in 135

18 ly teachers assigned to PPM models are paid according to KIAT Guru formula (percentage) financial reports schools whose TK is being paid based on KIAT Guru formula. Component 3: Technical Assistance and project management supports provided to strengthen the capacity of government officials and community members to improve teacher presence and service quality MOEC and district officials received capacity building (number) Village Cadre and User Committee members received capacity building (number) # of officials # of people Annual Annual Project activities reports Project activities reports BaKTI BaKTI Type of capacity building will be focused on capacity to draft national/regional regulations; conduct project socialization; and provide guidelines for community score cards, pay for performance mechanism, and village planning and budgeting. Type of capacity building will be focused on capacity to evaluate teacher presence and service quality.