PROGRESS REPORT...P2B Program Penghidupan Berkelanjutan P3BM Pro-Poor Planning, Budgeting and...

KOMPAK is an Australia–Indonesia Government PartnershipManaged by Abt Associates

PROGRESSREPORTJanuary - June 2017

Progress ReportJanuary - June 2017

KOMPAKJalan Diponegoro No. 72Jakarta 10320 IndonesiaT: +62 21 8067 5000 F: +62 21 3190 3090E: [email protected]

iPROGRESS REPORT JANUARY - JUNE 2017

Acronyms, Abbreviations, and Terms ................................................................................................................................. iv

Executive Summary ......................................................................................................................................................... viii

1. Introduction .................................................................................................................................................................. 1

2. Contextual and Policy Changes ..................................................................................................................................... 1National .................................................................................................................................................................. 1Sub-National ........................................................................................................................................................... 2

3. Progress Towards Outcomes .......................................................................................................................................... 2Utilisation of Fiscal Transfers for Basic Services ...................................................................................................... 3Information Systems for Data-Driven Policy, Planning and Budget Decision-Making .......................................... 12Innovations ............................................................................................................................................................ 16

4. Leveraging Resources and Value for Money ................................................................................................................. 19Minimising Operational and Management Costs as the Program Continues to Grow ......................................... 19Leveraging Resources and Relationships to Maximise Impact, Buy-In, and Reach .............................................. 20Embedding Value for Money (VfM) across KOMPAK’s Operational Platform to Ensure Impact and Results ........ 21Promoting Transparency and Accountability with Partners .................................................................................. 22

5. Lessons Learned, Challenges, and Future Priorities ..................................................................................................... 23Lessons Learned .................................................................................................................................................... 23Challenges ............................................................................................................................................................ 23Priorities July to December 2017 .......................................................................................................................... 24

Annexes ............................................................................................................................................................................ 25Annex 1. Finance Report ....................................................................................................................................... 25Annex 2. The Frontline Baseline Survey: Summary, Sample/Methods, and Selected Findings ............................. 27Annex 3. Framework with Project Outcomes and Indicators ................................................................................ 32Annex 4. List of KOMPAK Knowledge Products and Publications .......................................................................... 35

Table of Contents

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Table 1. Comparison of Village Budgets 2016–2017 in West Aceh (in IDR million) .......................................................... 11

Table 2. Planned vs Actual Expenditure............................................................................................................................ 21

Table 3. Number of Completed Surveys by Age, Gender and Poverty Status .................................................................. 27

Table 4. Administrative Location and Survey Type by Baseline Area ................................................................................ 28

Table 5. Equivalence of the Comparison and Intervention Group on Selected Attributes .............................................. 29

Table 6. Equivalence of the Comparison and Intervention Group on Selected Attributes .............................................. 30

Figure 1. Decentralised Fiscal Transfers 2017 ............................................................................................................... 4

Figure 2. Impact of PTPD Training ................................................................................................................................. 6

Figure 3. Local Regulations to Support Basic Services ................................................................................................ 10

Figure 4. Program vs Operational/Management Expenditures 2015–2017 ................................................................ 19

Figure 5. Progress Towards Outputs, January–June 2017 ........................................................................................... 21

Figure A. Jan-June 2017 Expenditure vs Workplan Budget Remaining ....................................................................... 25

Figure C. Outcome Expenditure vs Forecast (Jan-June 2017) ..................................................................................... 25

Figure B. KOMPAK Expenditure by Outcome (Jan-June 2017) .................................................................................... 25

Figure D. Jan-June 2017 Expenditure vs Workplan Budget Remaining by Project ...................................................... 26

List of Tables

List of Figures

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Box 1. AQC – Relevance ............................................................................................................................................ 2

Box 2. AQC – Monitoring and Evaluation .................................................................................................................. 5

Box 3. Politically Smart, Inclusive, Programming and Policy Work............................................................................ 5

Box 4. LANDASAN – Improved Procedures to Improve Health Service Quality in Papua and Papua Barat .............. 9

Box 5. Baseline Data: Fiscal Transfers........................................................................................................................ 9

Box 6. AQC – Gender ................................................................................................................................................. 9

Box 7. Replication, Scale-Up, and Spillover Effects ................................................................................................. 11

Box 8. AQC – Effectiveness ...................................................................................................................................... 12

Box 9. Baseline Data: Village Information Systems ................................................................................................. 13

Box 10. SID Mapping ................................................................................................................................................. 14

Box 11. Using the Village Information System in Rarang Selatan Village .................................................................. 14

Box 12. University Partnerships to Support Village Information Systems ................................................................. 15

Box 13. Improving Health Services in Pangkep (South Sulawesi) .............................................................................. 17

Box 14. AQC – Innovation and Private Sector Engagement ...................................................................................... 19

Box 15. AQC – Sustainability ..................................................................................................................................... 22

Box 16. AQC – Risk .................................................................................................................................................... 24

List of Boxes

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Acronyms, Abbreviations, and TermsADD Alokasi Dana Desa (Village Fund Allocation)AIPD Australian Indonesia Partnership for Decentralisation

AIPEG Australia Indonesia Partnership for Economic GovernanceAPBD Anggaran Pendapatan dan Belanja Daerah (Regional Budget)APBDes Anggaran Pendapatan dan Belanja Desa (Village Budget)APBN Anggaran Pendapatan dan Belanja Negara (State Budget)AQC Aid Quality CheckAQS Accessible Quality ServicesARING PEKAT Penjaringan Akte Kelahiran Melalui Pendidikan, Kesehatan dan Masyarakat (Network for Birth

Certificates through Education, Health, and Community)BaKTI Bursa Pengetahuan Kawasan Timur IndonesiaBappeda Badan Perencanaan Pembangunan Daerah (Development Planning Agency at Sub-National Level)Bappenas Badan Perencanaan Pembangunan Nasional (Ministry of National Development Planning)BAST Berita Acara Serah TerimaBDT Basis Data Terpadu (Unified Database)Bina Pemdes Bina Pemerintahan Desa (Directorate for Village Development)BLUD Badan Layanan Umum Daerah (Regional Public Service Agency)BOK Bantuan Operasional Kesehatan (Operational Funds for Health)BOS Bantuan Operasional Sekolah (Operational Funds for Education)BPD Badan Permusyawaratan Desa (Village Consultative Council)BPS Badan Pusat StatistikBTT Bunda TexTalkBUMDesa Badan Usaha Milik Desa (Village-Owned Enterprise)Camat Head of SubdistrictCRVS Civil Registration and Vital StatisticsCSO Civil Society OrganisationDAK Dana Alokasi Khusus (Special Allocation Fund)DBH Dana Bagi Hasil (Revenue Sharing Fund)DD Dana Desa (Village Fund)DFAT Department of Foreign Affairs and TradeDID Dana Insentif Daerah (Regional Incentive Fund)DJPK Direktorat Jenderal Perimbangan Keuangan (Directorate General of Fiscal Balance)EOFO End-of-Facility OutcomeFGD Focus Group DiscussionFormasi Forum Masyarakat Sipil (Civil Society Forum)FY Fiscal YearGerbangmas Gerakan Bangkit, Mandiri dan SejahteraGESI Gender Equality and Social InclusionGMT Grand Master TrainerGoA Government of AustraliaGoI Government of IndonesiaICF Innovation Challenge FundIDHS Indonesia Demographic and Health SurveyIEC Inclusive and Engaged CommunitiesIFLS Indonesia Family Life Survey

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IO Intermediate OutcomeIRE Institute of Research and EmpowermentJRI Jasa Layanan RisetindoKemenko PMK Kementerian Koordinator Pembangunan Manusia dan Kebudayaan (Coordinating Ministry for Human

Development and Cultural Affairs)KKN Kuliah Kerja Nyata (Community Service Program)KOMPAK Kolaborasi Masyarakat dan Pelayanan untuk KesejahteraanKSI Knowledge Sector InitiativeLakpesdam Lembaga Kajian dan Pengembangan Sumberdaya ManusiaLAN Lembaga Administrasi Negara (National Institute of Public Administration)LANDASAN Layanan Pendidikan dan KesehatanLES Locally-Engaged StaffLI Legal IdentityLKPJDesa Laporan Keterangan Pertanggungjawaban DesaLPKD Laporan Kinerja Pemerintah Daerah (Regional Financial Management Laboratory)LPPM UB Lembaga Penelitian dan Pengabdian Masyarakat Universitas Brawijaya (Institute of Research and

Community Service, University of Brawijaya)M&E Monitoring and EvaluationMAHKOTA Menuju Masyarakat Kokoh dan SejahteraMAMPU Maju Perempuan Indonesia untuk Penanggulangan Kemiskinan (Empowering Indonesian Women for

Poverty Reduction)MIS Management Information SystemMoCSME Ministry of Cooperatives and Small and Medium EnterpriseMoF Ministry of FinanceMoHA Ministry of Home Affairs (Kementerian Dalam Negeri)MoHDC Coordinating Ministry for Human Development and Culture (also see Kemenko PMK)MoSA Ministry of Social Affairs (Kementerian Sosial)MOU Memorandum of UnderstandingMoV Ministry of Villages, Development of Disadvantaged Regions and Transmigration (Kementerian Desa

Pembangunan Desa Tertinggal dan Transmigrasi)MSC Most Significant ChangeMSS Minimum Service StandardsNTB Nusa Tenggara Barat (West Nusa Tenggara)NTT Nusa Tenggara Timur (East Nusa Tenggara)OJK Otoritas Jasa Keuangan (Financial Services Authority)P2B Program Penghidupan BerkelanjutanP3BM Pro-Poor Planning, Budgeting and MonitoringPAD Pelatihan Apparat Desa (Village Generated Income)PAF Performance Assessment FrameworkPEKKA Perempuan Kepala Keluarga (Female-Headed Households Empowerment)PerBup Peraturan Bupati (District Governor Regulation)PERTUNI Indonesian Association for the BlindPFM Public Financial ManagementPKAD Pengembangan Kapasitas Aparatur Desa (Strengthening the Capacity of Village Government)PKH Program Keluarga HarapanPKK Pembinaan Kesejahteraan Keluarga

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PKKPM Peningkatan Kesejahteraan Keluarga berbasis Pemberdayaan MasyarakatPKP Pembangunan Kawasan Perdesaan (Rural Area Development)PLUT Pusat Layanan Usaha TerpaduPNPM Program Nasional Pemberdayaan Masyarakat PotensiPODES Pendataan Potensi Desa (Village Potential Data Collection)Pokja Thematic Working GroupPP Peraturan Pemerintah (Government Regulation) PRE Performance, Research and EvaluationPROSPEK Program Strategis Pemberdayaan Ekonomi dan Kelembagaan KampungPSF PNPM Support Facility [World Bank]PTPD Pembina Teknis Pemerintahan Desa (Technical Facilitators for Village Governance)PUSKAPA UI Pusat Kajian Perlindungan Anak Universitas Indonesia (Center on Child Protection and Wellbeing,

University of Indonesia)Puskesmas Pusat Kesehatan Masyarakat (Community Health Centre) RISE Rich and Impactful Social EnterpriseRPJMN Rencana Pembangunan Jangka Menengah Nasional (National Medium-Term Development Plan)SAID Sistem Administrasi dan Informasi Distrik (Sub-district Information System)SAIK Sistem Administrasi dan Informasi Kampung (Village Information and Administration System)Sakernas Survei Angkatan Kerja Nasional (National Workforce Survey)SAT Strategic Advisory TeamSD Standard DeviationSEPAKAT Sistem Perencanaan Penganggaran Analisis dan Evaluasi Kemiskinan Terpadu (Integrated System for

Planning, Budgeting, and Evaluation for Poverty Reduction Program)SEPOLA Sekolah Politik Anggaran (Political Budget School)SID Sistem Informasi Desa (Village Information Systems)SIKD Sistem Informasi Keuangan Daerah (Integrated Regional Finance Information System)Simpadu Sistem Informasi Terpadu Penanggulangan KemiskinanSIP Strategy, Innovation and PerformanceSiskuedes Sistem Keuangan Desa (Village Financial System)SKB Surat Kerja Bersama (Coordination Letter)SKKNI Standar Kompetensi Kerja Nasional Indonesia (Indonesian National Competency Standards)SKPD Satuan Kerja Perangkat Daerah (Local Government Agency or Department)SMT Senior Management TeamSMK Traditional High SchoolSOP Standard Operating ProcedureSPF Strategic Performance FrameworkSTIT Sekolah Tinggi Ilmu TeknologiSusenas Survei Sosial Ekonomi Nasional (National Socio-Economic Survey)TA Technical AdviserTAF The Asia Foundation TNP2K Tim Nasional Percepatan Penanggulangan Kemiskinan (National Team for the Acceleration of

Poverty Reduction)ToT Training of TrainersTRATA Transparan, Akuntabel, Tepat Guna [Game]TVET Technical and Vocational Education and Training

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UID Universitas Islam NegeriUMD Universitas Membangun Desa (Universities Building Villages)VfM Value for MoneyYASMIB Yayasan Swadaya Mitra BangsaYTD Year to Date

Exchange rate used in this report: AUD 1 = IDR 10,000

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KOMPAK is an Australia–Indonesia Government partnership working to reduce poverty and address inequality by supporting the Government of Indonesia (GoI) to improve basic services and economic opportunities for the poor and vulnerable. KOMPAK consolidates and builds on previous GoI and Department of Foreign Affairs and Trade (DFAT) investments in governance, service delivery, community empowerment, and civil society strengthening, by working at the national and sub-national levels and integrating all activities into a single facility. This report documents KOMPAK’s progress towards Outcomes during the period January to June 2017.

KOMPAK structures its work across three areas:• EOFO 1: Local government and service units better address the needs of basic service users.• EOFO 2: The poor and vulnerable benefit from improved village governance.• EOFO 3: The poor and vulnerable benefit from increased opportunities for off-farm employment and economic

development.

This report focuses on the three themes: (i) Utilisation of fiscal transfers for basic services; (ii) Information systems for data-driven policy, planning and budget decision-making; and (iii) Innovations. These themes represent areas in which KOMPAK has made significant progress to date and demonstrates an integrated approach to reporting across KOMPAK’s Outcome areas. Furthermore, addressing all three issues is critical to improve basic service provision and economic opportunities for the poor.

Utilisation of fiscal transfers for basic services. KOMPAK has provided policy advice for central fiscal transfer policies, influencing a total of IDR 125.8 trillion from the 2017 national budget (approximately AUD 12 billion). KOMPAK has contributed to improvements in transfer allocations, formulas and piloting new systems (E-Planning) for three specific fiscal transfers: Regional Incentive Funds (DID), Special Allocation Funds (DAK), and Village Funds (DD), ensuring these fiscal transfers include performance incentives to improve basic services. At the sub-national level, efforts are concentrated on supporting local governments to allocate funds for basic services through training sessions, technical assistance, local policy advocacy, and collaboration with partners. Under Outcomes 1 and 2, significant progress has been made towards strengthening subdistrict (kecamatan) and service delivery systems, and improving local regulations and social accountability at the village level.

Information systems for data-driven policy, planning and budget decision-making. With the increase in fiscal transfers to villages, local governments require better data and information for planning, accountability, transparency, and establishing public services. Across seven provinces, KOMPAK supports various efforts to develop and implement village information systems (sistem informasi desa, SID). These systems allow village governments to better identify and respond to the needs of their communities, and enable evidence-based, transparent village development. KOMPAK’s support is well established in several districts, and there is now evidence of local governments replicating KOMPAK assistance through their own budget allocations, support activities, and signing local regulations that institutionalise ongoing resources. Mapping of current village systems has been completed in all KOMPAK villages, except those in Papua and West Papua (where a different system is used), so KOMPAK can plan appropriate interventions and monitor changes. Work is on track and efforts in the next six months will focus on linking SID with the GOI Unified Database and SIAK for population and poverty data, as well as enabling cross-system information sharing.

Innovations. KOMPAK continues to identify innovative approaches to reach local governments and communities through technology, non-traditional partnerships, and new ideas, focusing on improving health services, strengthening village governments, and increasing economic opportunities. Examples include using mobile technology to connect pregnant women and healthcare providers (Bunda TexTalk); training women and youth to increase community awareness of, and promote transparency around the use of village funds (TRATA Jaga Desa); and adapting approaches from the IT sector to develop links between producers and markets. In the next six months KOMPAK will document these innovations and opportunities for scale up through government and private sector resourcing.

Executive Summary

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Implementing activities across provinces creates the opportunity to connect, discuss problems, share ideas and information. This multi-province approach has generated learning for KOMPAK and government. Sub-national teams continue to identify champions within local government to help with coordination of activities. With the addition of staff deployed to the field offices, KOMPAK has prioritised communication and coordination between team members, implementing partners, and local government to ensure appropriate support for the implementation of activities. For the next six months KOMPAK will focus on strengthening the feedback loops from work at the sub-national to the national level, and its work on national policy with implementation at the subnational level.

KOMPAK’s investment continues to track well and is in line with forecasts. Over the reporting period KOMPAK spent 98.7 percent of its expenditure target. KOMPAK met 99.9 percent of its financial target for the financial year (July 2016–June 2017).

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1PROGRESS REPORT JANUARY - JUNE 2017

KOMPAK is an Australia–Indonesia Government partnership working to reduce poverty and address inequality by supporting the Government of Indonesia (GoI) to improve basic services and economic opportunities for the poor and vulnerable. KOMPAK consolidates and builds on GoI and Department of Foreign Affairs and Trade (DFAT) investments in governance, service delivery, community empowerment, and civil society strengthening, by working at the national and sub-national levels and integrating all activities into a single facility.

KOMPAK structures its work across three areas:• EOFO 1: Local government and service units better address the needs of basic service users.• EOFO 2: The poor and vulnerable benefit from improved village governance.• EOFO 3: The poor and vulnerable benefit from increased opportunities for off-farm employment and economic

development.

This Progress Report covers the period from January to June 2017. The Progress Towards Outcomes chapter is organised by the three key themes: (i) Utilisation of fiscal transfers for basic services; (ii) Information systems for data-driven policy, planning and budget decision-making; and (iii) Innovations. KOMPAK has demonstrated significant progress with these three issues and they reflect important areas of work where improvements in basic services and economic opportunities for the poor can be made. In each thematic section, the report highlights key achievements, and connects activities across outcomes and across national and sub-national implementation. There follows a summary of challenges and lessons learned, and an outline of future priorities. It also reports against the Australian Government’s Aid Quality Check (AQC) criteria. Annex 1 includes program expenditures for this reporting period. Annex 2 presents a brief description of KOMPAK’s Baseline survey. The KOMPAK Framework with Project Outcomes is included as Annex 3. Annex 4 provides a list of KOMPAK Knowledge Product and Publications.

1. Introduction

2. Contextual and Policy Changes

National

During the first half of 2017, some important policy developments have taken place that impact KOMPAK’s work. A number of key regulations came into play that support KOMPAK’s planning and budgeting and decentralisation agendas, and government restructuring has led to new relationships or opened up new opportunities for relationships. While these are positive developments, progress in other focus areas such as Village Law has been slow.

The new government regulation on synchronisation of planning and budgeting (PP 17/2017) strengthens the collaboration between and joint accountability of the Ministry of National Development Planning (Bappenas) and the Ministry of Finance (MoF) in the planning and budgeting cycle. For KOMPAK, this regulation brings together the technical assistance provided to these ministries and others on key policies, such as fiscal transfers and their impact on poverty and inequality, and minimum service standards. Another new government regulation on local government oversight (PP 12/2017) clarifies levels of supervision and strengthens oversight by provincial governors to districts, and by regents to villages, with an explicit role for the government Internal Auditor. This regulation strongly reinforces KOMPAK’s work on improving the accountability and transparency of district and village governments.

The policy environment for Village Law remains challenging. The President has provided clear direction to use village funds for activities that reduce poverty and inequality. However, the Ministry of Village, Development of Disadvantaged Regions, and Transmigration (MoV) has now issued a regulation that instructs villages to prioritise village-owned enterprises (BUMDesa), water reservoirs, village products of excellence, and sport facilities. These four priorities have been criticised for not being fully aligned with national development priorities and because they may not always be relevant to the needs of all 74,954 Indonesian villages. The President did not approve the draft Presidential Decree to establish a Village Law implementation coordination team, which impacts on the role and plans of the Coordinating Ministry for Human Development and Cultural

2 PROGRESS REPORT JANUARY - JUNE 2017

Affairs (Kemenko PMK) to coordinate monitoring of Village Law implementation. Moreover, the joint cooperation agreement by four ministries is yet to be signed, and the road map for the implementation of Village Law is still to be formally endorsed.

On a more encouraging note, the list of national priorities for the GoI’s 2018 work plan (Rencana Kerja Pemerintah 2018, led by Bappenas) has been finalised, many of which align with KOMPAK’s priorities and objectives.

There have been changes to GoI staffing within key partner ministries: two directors in Bappenas, including the Director of Labour and Employment Opportunities, who chairs KOMPAK’s Technical Committee; a director general in the Ministry of Labour; and three directors in the MoV.

Sub-National

In KOMPAK provinces, the elections marked a significant change in context for several provinces. For example, the West Papua election results may open opportunities to incorporate shared priorities into the medium-term local development plan. Similarly,election in Aceh have resulted in a new Governor and Head of DIstrict in all KOMPAK areas, which could delay the process of obtaining buy-in at district level, while at the same time provide an opportunity to streamline approaches province-wide.

Local governments have endorsed KOMPAK’s annual work plan in each province and district. Over the last six months, commitment to and replication of KOMPAK-supported activities using local government budgets has increased. Some are related to data-driven planning and budgeting, legal identity, capacity strengthening of community-level facilitators, and village information systems. Almost all main local regulations related to the delegation of authority to the subdistrict head (Camat) are in place, as well as regulations on village authorities.

KOMPAK’s eight strategic partners1 have now started implementing activities at the local level related to improving transparency of the village development processes and social accountability.

3. Progress Towards Outcomes

In 2017 KOMPAK has prioritised implementation efforts on key issues under each intermediate outcome.2 This chapter highlights key achievements, connects activities across outcomes and across national and sub-national implementation. It does not reflect all achievements, but focuses on the three themes. These themes were selected because they represent areas in which KOMPAK has made significant progress during this reporting period. They are also areas which demonstrate the strong linkages across KOMPAK’s End of Facility Outcomes (EOFO).

Utilisation of fiscal transfers for basic services. This issue is addressed under two of KOMPAK outcome areas. KOMPAK works with the GoI to improve fiscal transfer policies (EOFO 1) and the utilisation of these fiscal transfers by local governments, including villages, to improve basic services (EOFO 2).

1 TAF, IRE, PUSKAPA UI, Penabulu, LPA-NTB, BaKTI, PEKKA and SEKNAS Fitra.2 See Annex 3 for the outcomes framework.

Box 1. AQC – Relevance

KOMPAK’s work is directly aligned with GoI strategies to reduce poverty and inequality in Indonesia. KOMPAK is guided by a Steering Committee, with members from five ministries, as well as technical committees to guide each outcome area. KOMPAK’s work is also guided by and aligned with the Australian funded program and investment for Indonesia.

In addition to being aligned with national strategies, KOMPAK’s EOFOs support local government priorities in the seven provinces in which KOMPAK works.

KOMPAK engages multiple modalities to achieve its intended goals, including policy advocacy and support; innovative approaches to supporting government; and working with strategic partners that have extensive local networks, enabling them to provide direct interventions to villages. By employing multiple modalities, KOMPAK is able to work effectively at the national and sub-national levels to ensure results.


Information systems for data-driven policy, planning and budget decision-making. High quality planning and budgeting by local governments and service units requires an ability to use evidence, respond to basic service needs, as well as develop adequate data and processes. These requirements drive KOMPAK’s work on strengthening the availability, management, and use of data and information, at both the national and sub-national level (EOFO 1 and EOFO 2).

Innovations. KOMPAK optimises the use of existing resources and networks to deliver innovative development solutions to help improve access to basic services and increase economic opportunities for the poor and marginalised. Activities are cross-cutting, and results are noted across all three EOFOs.

Utilisation of Fiscal Transfers for Basic Services

In this section we describe the results of KOMPAK assistance to GoI to improve and streamline national fiscal transfer policies (EOFO 1), and then outline increases in the utilisation of these fiscal transfers by local governments, including villages, to improve basic services and village development (EOFO 2).

Improving National Fiscal Transfer Policies and Procedures

The percentage of the Indonesian government budget decentralized to the districts now stands at 50 percent , necessitating a clearer and better understood regulatory framework for fiscal transfers. The regional fiscal transfers consist of six elements; the General Allocation Fund (DAU), the Revenue Sharing Fund (DBH), the Regional Incentive Fund (DID), the Special Allocation Fund (DAK), the Village Fund (DD) and the Regional Autonomy Funds for Papua, Aceh and Yogyakarta. KOMPAK has focused on three funds that are significant in terms of value and have the potential to be utilised for basic services. They are: the Regional Incentive Fund, the Special Allocation Fund, and the Village Fund. The total value of these transfers in 2017 is IDR 125.8 trillion, or approximately AUD 12 billion (see Figure 1). KOMPAK has also provided technical input into review of the Regional Autonomy Fund (Dana Otsus) for Papua.

KOMPAK assisted the development of a Ministry of Finance regulation affecting allocation of the DID. KOMPAK’s technical assistance focused on the calculation of local government ratings used to determine which areas receive DID, and how much. The revised formula has a base allocation of IDR 5 billion (approximately AUD 475,000) for those districts that have received the highest audit score, and have submitted their district plan and budget (APBD) on time. Good performance

against other indicators related to service provision, poverty reduction, a nd s ocial development t hen l eads to a performance allocation. U sing t he revised system, 21 provinces, 233 districts, and 63 cities received DID. The number of border and disadvantaged areas, as well as areas outside Java, which received the DID performance allocation in 2017 also increased. KOMPAK staff have been informed of examples where districts in KOMPAK working areas are now targeting development investments towards the DID indicators where they are lagging, to improve their chances of receiving DID funds in later years. KOMPAK will follow up these reports and other related outcomes over the next year.

Achievements in this section demonstrate progress towards intermediate outcomes:

IO1: Fiscal transfer arrangements for basic service delivery improved.

IO2: Local government and service units have strengthened systems, processes and procedures.

IO3: Local governments and service units utilise evidence and understanding of local issues to improve services.

IO4: Village governments are more responsive and accountable to the identified needs of their communities, particularly those of the poor and vulnerable.

IO6: Communities are increasingly advocating for their priorities in relation to village development, including access to frontline services.

Sub-district Secretaries in East Java worked in groups to formulate ideas of rural areas development in Sub-district Capacity Building of Poverty Alleviation Through basic Services and Economy Development


The Special Allocation Fund (Dana Alokasi Khusus – DAK) transfer is available to provincial, district, and city governments for funding related to public works, health, education and the local economy. DAK proposals need to be reviewed by Bappenas and MoF, as well as the technical ministries, resulting in a lengthy and confusing bureaucratic process. In early 2017, KOMPAK supported Bappenas and MoF to set up an electronic application system for provincial and district governments called E-Planning. This major reform has two main benefits: first, the system can be accessed by multiple stakeholders (respective ministries and local governments) and includes the collection, scoring, reconciliation, and monitoring and evaluation of DAK proposals; second, it allows local governments to submit a single integrated proposal, rather than multiple ones. The E-Planning system covers DAK proposals for 2018–2020, technical data to support the proposal, and data on previous DAK use for the years 2015–2017.

In March 2017, the DAK E-planning system was piloted in Aceh, South Sulawesi, and NTB, where KOMPAK contributed to sessions on improving understanding of the system, and provided training to local officials on the content and submission of proposals. After this successful pilot, KOMPAK supported Bappenas to host an event in April, which provided information and technical assistance to government officials from all 34 provinces, as well as all 514 districts and cities. This support allows all 34 provinces and 514 districts in Indonesia to use the single, integrated DAK e-planning system and emphasises the importance of prioritising allocations for basic services. KOMPAK is currently working with the Directorate of Fiscal Balance in MoF (DJPK) to develop another sub-system called E-Synchron to assist with the reconciliation work after the proposal submission.

KOMPAK is a leading advocate for changing the allocation formula used to distribute the Village Fund (Dana Desa, DD). Currently, funds are allocated based on a two-part formula consisting of: (i) a basic allocation (90 percent of funds); and (ii) a needs-based allocation (10 percent of funds). The needs-based allocation accounts for village characteristics (population, poverty rate, area of the village, and the degree of geographic isolation).

Research conducted by KOMPAK, the World Bank, and others, suggests that the current allocation formula for the Village Fund is not equitable and is not optimally aligned with poverty reduction efforts. The allocation tends to favour regions with more villages, irrespective of population (smaller villages have higher per capita allocations) and poverty levels are not sufficiently considered. Through its Steering Committee, KOMPAK initiated discussions about the revision of the 90:10 allocation with key GoI ministries and relevant community organisations. At a meeting convened by KOMPAK in March, representatives from Bappenas, MoV, MoHA, TNP2K, and the MoF, agreed that the allocation formula needed to change, because the 10 percent needs-based allocation was insufficient and failed to adequately consider the needs of poor and underdeveloped villages. Decreasing the basic allocation and increasing the needs-based allocation would allow more resources to be directed to villages most in need. Potentially, thousands of underdeveloped villages and millions of poor people could benefit from such an adjustment in the formula.

Figure 1. Decentralised Fiscal Transfers 2017

FISCAL TRANSFERAPBN 2017 (Trillion)

Central (MoF)

DDIDR 60

Village District

DAKIDR 58.3

DIDIDR 7.5

Basic Services

TOTALIDR

764.9

As of May 2017, 140,000 proposals submitted to

E-planning system

Regulatory changes resulted in increased allocations (Central Java, NTB, East Java, and Aceh)

Central (MoF) Province

District

DD ADD, Tax,Bankeu

FinansialAssistance(Bankeu)

Disburse based on Regent Regulation

DD, ADD, DBH, BanKeu

DD, DAK, DID

Village


KOMPAK continues to work with MoF on the development of a new formula, with considerable attention to the high level of political sensitivity surrounding the revision. KOMPAK developed a joint policy position with the World Bank, Knowledge Sector Initiative (KSI), and TNP2K to ensure consistent messaging to GoI. Understanding that any cut to the Village Fund might be politically untenable, the current position advocates for each village to receive at least IDR 720 million (approximately AUD 72,000) so that no village would receive less than what was allocated in 2016. The new formula is currently being discussed by GoI and is due to be announced by the President in August 2017.

KOMPAK has also advocated for the Regional Autonomy Fund (Dana Otsus) in Papua and West Papua. In early 2017, KOMPAK was asked by the Papuan governments to review the impact of Dana Otsus on poverty reduction. Through this work, KOMPAK has become a key resource for the Papuan governments in their work to improve how these funds are used. KOMPAK is currently rewriting the guidelines and training for GERBANG MAS (a program of the Papuan government to improve public services for health, education and economic development) and has re-designed the PROSPEK program (a village fund aimed at strengthening village economy and village institutions for Papua province), influencing the use of fiscal transfers worth AUD 25 million and AUD 58 million respectively.

KOMPAK’s support to these policy reforms is documented in the internal policy engagement reviews, After Event Reports, and research products as part of the monitoring and evaluation system.

Increasing Local Government Use of Fiscal Transfers to Improve Basic Services

Working on improving national fiscal transfer policy and systems is half of the KOMPAK approach. The other half focuses on the use of these transfers to improve basic services and economic opportunities. This is through direct day-to-day assistance provided by KOMPAK’s sub-national teams and strategic partners, and implementation of two major pilots: the GoI Frontline Pilot (16 districts, five provinces) and LANDASAN (10 districts, two provinces). These pilots are testing methodologies and approaches for strengthening governance related to basic services. During this reporting period KOMPAK has focused on three areas: subdistrict staff knowledge and performance; service delivery management systems; and the village level enabling environment.

Box 3. Politically Smart, Inclusive, Programming and Policy Work

KOMPAK ensures that all of its work is underpinned by a solid understanding of the political economy, employing an inclusive and politically smart approach to encouraging policy dialogue, the use of data and research, and fostering coalitions for change. As shown above, in the last six months KOMPAK’s inclusive and politically smart approach has yielded significant accomplishments in relation to fiscal transfers, work in Papua, and other key program areas.

KOMPAK has invested in developing key national and sub-national staff skills in structured political economy analysis using an adapted analysis tool. This provides insight about the political context that underpins any policy change staff are intending to support. KOMPAK will use this tool to inform decision-making processes, monitor and evaluate change, and generate new ideas for policy advocacy.

Box 2. AQC – Monitoring and Evaluation

M&E System: KOMPAK’s framework tracks outcomes at three levels: End-of-Facility Outcomes, Intermediate Outcomes, and Project Outcomes. KOMPAK’s indicators are attached to outcomes at each level. The indicators are also aligned to DFAT’s Performance Assessment Framework (PAF) (see Annex 3).

Baseline Survey: The Baseline Survey was conducted in five provinces, 14 districts, 16 subdistricts, and 43 villages. Two types of interviews/questionnaires were used: (i) Household (HH), and (ii) Community and Facility (COMFAS). Overall, data was collected from 1,038 (551 Female) HHs and 354 COMFASs. The survey can be used by KOMPAK, partners, stakeholders, government, and basic service units to identify problem areas for more efficient and effective targeting of activities, and to establish baseline benchmarks to measure program impact and change over time.

Learning: KOMPAK’s M&E system feeds back learning to both program implementation and management. Results from data collection (e.g. PAS, district scan, SID Mapping, Policy Reviews, PAF reporting) are shared with implementing teams and partners to improve program implementation and inform new activities. Quarterly reviews focus learning on program management, as teams review progress, discuss challenges, and review expenditure.


Improving Subdistrict Staff Knowledge: Outcomes Observed from Investment in Training and Supervision

This six-month period has seen substantial progress in implementing subdistrict staff development programs that are already resulting in increases in funding to basic service delivery. It is expected that these increases will be allocated to locally-identified needs, and this will be monitored on an ongoing basis.

A well-functioning subdistrict will support villages to develop plans and budgets that prioritise basic services and fulfil the needs of the community. Part of this is ensuring each village has access to subdistrict technical facilitators for village governance (Pembina Teknis Pemerintahan Desa, PTPD). KOMPAK has supported the development of training modules for village planning and budgeting processes to address improvements in basic services, gender, and pro-poor planning; and implementation of training for national master trainers, who have then trained provincial and district level trainers, who have then gone on to train subdistrict facilitators.3 In the last six months, 120 master trainers and 302 subdistrict facilitators from across Indonesia have been trained. There were 138 subdistrict officials (17 percent female) from the KOMPAK working areas of Central Java, South Sulawesi, and Aceh who participated. KOMPAK’s participant assessment survey found that over 81 percent of subdistrict facilitators reported being confident that they can provide technical assistance and support to village governments following the training. This was then demonstrated by the guidance provided by subdistrict facilitators for subsequent village planning and budgeting processes in their respective locations throughout the seven provinces where KOMPAK is working. The results of this can be seen most clearly in NTB, Aceh, Central Java, and Pacitan in East Java (see Figure 2).

3 This is the Frontline Pilot package 1.2.

KOMPAK villages in three districts increased their 2017 budgets for basic service activities.

Brebes has increased basic services allocations and mainstreamed them in their 2018 village budget; Pekalongan has increased allocations to education and health services.

37 KOMPAK villages in four districts increased their 2017 budget allocations for basic services; in Lombok Utara, the average increase for 2017 budgets was 25 percent. The head of Bima District signed a regulation that mandates villages to allocate at least 20 percent of their budgets for basic services in 2017, a�ecting the budgets of 191 villages.

Pacitan funds have been allocated for the salaries of early childhood education (PAUD) teachers, which will ensure preschool services to young children.

Bantaeng facilitated a review of 2017 planning documents related to basic services. The basic services’ codes were included in Siskeudes.

IMPACTS OF THE PTPD TRAINING

Aceh

EastJava

CentralJava

SouthSulawesi

NTB

Figure 2. Impact of PTPD Training


KOMPAK has also supported training of subdistrict heads (Camats) and secretaries to improve basic services coordination. KOMPAK consulted and worked with the Directorate of Regional Administration in MoHA to design 11 training modules for the leadership and management training package for subdistrict heads and secretaries.4 Currently, 44 subdistrict heads and subdistrict secretaries from all seven provinces supported by KOMPAK have been trained. Overall, across all modules, participants scored 8.9 percentage points higher on the post-test relative to the pre-test, which represents a significant increase in knowledge. Training is just one part of a package of support and technical assistance which, in its entirety, will enable subdistrict staff to implement local strategies designed during these trainings to improve basic services for their communities.

In Papua and Papua Barat, village heads from 125 villages in six districts committed to allocate funding for education services in their 2018 budgets, following training in education minimum service standards and school-based management provided through LANDASAN. Training focused on education budget and planning, implementing standards, and management. Training participants extended beyond the village head to ensure wider understanding of requirements, but also partly to ensure that there is some opportunity for female participation, as village government structures are overwhelmingly male. In this case, a quarter of the 479 participants were female.

Strengthening Service Delivery Management Systems

A well-functioning subdistrict also means acquiring and managing funding for the continuous improvement of service delivery. Districts, subdistricts, and service units have a responsibility to plan, manage, and report on funds to the government, and require financial management skills to do so competently. In the last six months KOMPAK and strategic partner, Penabulu, finalised the Public Financial Management (PFM) module of the GoI Frontline Pilot and piloted it in three provinces (Central Java, East Java, and NTB) and five districts. Input was provided from primary health care providers, schools, local community service agencies, and the subdistrict. Based on the pilot, the modules were adapted and tailored for service unit and local government needs. Phase 2 trained village officials in the use of a portable PFM software application. It was acknowledged that the application could benefit from some refinements. Overall, nearly 85 percent of the 75 participants (46 percent female) reported that the training was beneficial and supported their financial management work.

4 This is the Frontline Pilot package 1.1.

Social inclusion class of YASMIB in Sabutung Island, Pangkep District, South Sulawesi, for women and disabled.


Legal Identity Services

KOMPAK has a specific suite of interventions focused on legal identity service delivery, due to its importance as a gateway to access health and education services, among others. At the national level, KOMPAK and strategic partner, the Center on Child Protection and Wellbeing (PUSKAPA UI), have provided technical advice for development of the National Civil Registration and Vital Statistics (CRVS) strategy. The strategy has four main components: (i) CRVS policy, (ii) the quality of CRVS services, (iii) the behaviour of communities, and (iv) the use of CRVS and population data. The draft Presidential Regulation on CRVS has been endorsed by Bappenas, the President’s Office, and MoHA and is due to be released by the end of 2017. To complement the policy work being done at the central level and to improve the effectiveness of legal identity services, KOMPAK has promoted two parallel sub-national implementation models: Outreach through mobile services to register those who have so far been missed; and, Acceleration through a robust, collaborative system to provide multiple opportunities to register, reducing the possibility of citizens ‘slipping through the net’. These include using health facilities, as well as school-based registration systems. These systems are then institutionalised through regulations. This integrated and systematic approach has resulted in 245,198 birth certificates being issued in four KOMPAK districts between December 2016 and June 2017.

Below are examples of these strategies in action.

• Sekolah Politik Anggaran (political budget school or SEPOLA) is community training organised by TAF partner INISIATIFin Pacitan and Trenggalek, East Java) with support also from PUSKAPA UI. In May 2017, two villages in Trenggalekand Pacitan mapped out civil registration services intheir villages and identified areas for improvement. Thisresulted in the village governments agreeing to allocatefuture funds to support civil registration services andrelated activities, especially for vulnerable groups in thecommunity.

• Petungkriono subdistrict (Central Java) placed in the top five in the legal identity service acceleration innovationcompetition in Pekalongan district, with Jek-Duk, amotorbike service for civil registration (see Story ofChange in July–December 2016 Progress Report).The Pekalongan district government has taken steps to coordinate and include various agencies from the health, education, and social affairs sectors, and from subdistricts and villages in the Jek-Duk innovation. This year KOMPAK and PUSKAPA UI, along with the population administration agency (Dukcapil), developed a district regulation for coordination of agencies across each service sector. In April 2017, the district regulation on the Acceleration of Birth and Death Certificate Service (Peraturan Bupati tentang Percepatan Pelayanan Akta Kelahiran dan Kematian) was officially launched.

• In Bima, the district government has launched a model for increasing birth certificate ownership through cross-sectoralcollaboration, locally known as Kabua Ncore. This involves civil registration office, schools, community health centres,and community members. The Bima government commitment is evidenced through the increase in birth certificatecoverage for children aged 0–18 years from 46 percent in December 2016 to 81 percent in June 2017.

Head of Sub-district of Petungkriyono, Agus Purwanto launched Ojek Kependudukan (Jek-Duk) to accelerate legal identity ownership. Jek-Duk officers pick-up documents at villagers houses and deliver them to Population Services District Office. After being processed, legal identity document will be delivered to the villagers.


Box 4. LANDASAN – Improved Procedures to Improve Health Service Quality in Papua and Papua Barat

A total of 29 health centres across Papua and Papua Barat have improved or developed new Standard Operating Procedures (SOPs) for health centres (Puskesmas), following a program of training and mentoring provided through LANDASAN. These SOPs will improve the quality of services provided, as well as the planning and budgeting for health centres by the local government. For example, one of the SOPs requires all patients to be seen within 10 minutes of arrival, and that all emergency patients who can’t be treated at the health centre must be transported to hospital within one hour of arrival.

Two Puskesmas (Puskesmas Harapan and Dosay) have been identified as Puskesmas Penggerak (champions) and are supporting the other 27 Puskesmas to develop their SOPs and strategies to meet the accreditation requirements.

Box 5. Baseline Data: Fiscal Transfers

As part of the Baseline Survey, fiscal transfer data was collected from 43 villages in 16 subdistricts, 14 districts, five provinces where KOMPAK is working. On average, village government representatives reported the amount of DD received in 2016 was IDR 695.1 million (approximately AUD 69,510). While DD funds were used for a variety of purposes, including infrastructure development, planning and budgeting, and community empowerment, only one-third of respondents believed that the DD addressed proposals from the community. Also reported was the amount of ADD expected in 2017, which, on average, was IDR 762.2 million (approximately AUD 76,220).

Box 6. AQC – Gender

In 2017, KOMPAK strengthened its gender and disability inclusion strategy through various programs, activities, and events. This strategy and many of the emerging results that have followed are documented below:

GESI Strategy Adjustment and DisseminationTo provide KOMPAK, strategic partners, and counterparts with uniform guidance to mainstream gender and social inclusion across all activities, KOMPAK made some necessary adjustments to address changes in the program. With the support of a GESI Task Force, a strategy document was developed and published in March 2017. This document, which outlines KOMPAK’s Gender Equality and Social Inclusion Strategy, was distributed throughout KOMPAK and its sub-national teams, strategic partners, and government counterparts at the local and national level.

Incorporating GESI in Public Finance Management (PFM) ModulesWorking with Penabulu, KOMPAK supported DJPK in the development of a Public Finance Management Module that incorporated a GESI perspective, emphasizing the importance of gender disaggregated data to improve targeting of interventions. There was strong buy-in from DJPK – in part, because they wanted to showcase a GESI inclusion model to other directorates within the Ministry of Finance. Similar GESI PFM modules have been tested in KOMPAK areas to gain additional insight and feedback.

Road Map for Disability Inclusion in the National Health SystemAs a result of recommendations from a national disability conference sponsored by Bappenas and supported by KOMPAK in December 2016, the Ministry of Health requested support for disability policy. Working together with PUSKAPA UI, CBM, and WHO, KOMPAK has encouraged local partners and government to contribute their perspective to a road map for disability inclusion in the national health system. The initial meeting occurred in April and ongoing consultation processes are underway in several KOMPAK working areas. This road map will provide guidance for disability inclusion in the national health system for 2017–2030.

TRATA Launch and Roll OutIn collaboration with the Australia Indonesia Partnership for Justice and the Corruption Eradication Commission, KOMPAK supported the Ministry of Home Affairs, the Ministry of Village, Development of Disadvantaged Regions, and Transmigration, and the Coordinating Ministry for Human Development and Cultural Affairs to launch and roll out the training for TRATA (transparan, akuntabel, tepat guna). TRATA is a game developed to increase public awareness, knowledge, and oversight of village development processes. A train the trainer (ToT) model is being used and KOMPAK, in collaboration with MoHA, trained 121 participants (72 female and 49 male) from South Sulawesi, West Nusa Tenggara, Papua, and West Papua.

Supporting Qanun (Aceh Local Regulation) Development on Gender-Responsive Planning and Budgeting KOMPAK is supporting Qonun development that includes gender-responsive planning and budgeting. Two GESI panel experts provided written input and facilitated discussions with the local government representative’s council in Aceh Barat. The Qonun development draft is undergoing the final revision process.

Academy Paradigta – PEKKA at Women Religious Leader CongressMore than 500 participants from Indonesia and beyond attended the Women Religious Leader Congress in Cirebon, where KOMPAK supported Academy Paradigta to develop and support village-level women leaders. The event provided a forum for PEKKA to share best practices and broaden women’s networks, and for KOMPAK to introduce TRATA (see above).

Financial Literacy for Women and People with DisabilitiesKOMPAK supported the Ministry of National Development Planning, the Financial Services Authority (OJK/Otoritas Jasa Keuangan), and the Ministry of Social Welfare in reviewing their modules on (i) financial literacy, and (ii) GESI. In collaboration with NGOs, KOMPAK facilitated a focus group discussion that examined financial literacy and GESI from a human rights perspective. One of the goals of the event was to develop one module that encompassed both areas. This module will be tested in August in Central Java, East Java, and South Sulawesi or West Nusa Tenggara Barat. KOMPAK also supported a social business called Fingertalk through its incubation program. This organisation aims to increase job opportunities for the hearing impaired, providing participants with internships and work experience.


Village Level Enabling Environment

While the subdistrict has an important role to play in the oversight and facilitation of improvements to basic services, many of the key actors and activities operate at the village level. To improve basic services and realise the vision of Village Law, the regulatory environment needs to allow for and encourage spending on basic services, and the community needs to understand how Village Law and basic services should operate, so they can advocate for the changes they need.

In the last six months, KOMPAK has made positive steps towards improving local regulations and mechanisms to increase the accountability of village governments to their citizens.

Figure 3. Local Regulations to Support Basic Services

Leveraging Networks and Expertise through Strategic Partnerships

KOMPAK works with strategic partners operating in all seven provinces, on a range of issues from social accountability to public financial management. Strategic partners are experts in their field and have existing networks and relationships that enable them to promote sustainable solutions and capitalise on opportunities for local replication and scale up.

For example, strategic partner TAF has worked with its local partners in Aceh and South Sulawesi to draw on local knowledge of the political economy to influence village budgets soon after they commenced implementation. Village budget allocations for health and education sectors increased in three villages in West Aceh (see Table 1).

In Brebes the o�ice of Village Community Empowerment issued a circular letter (No. 140.41/1159) on the allocation of 2018 village funds.

Regulation on Village Authority in Lombok Timur and Sumbawa included a mandate for village budgets to include funding for data collection and facilitation of village legal identity services. In Sumbawa the budget amount ranged from IDR700,000 - 1.1 million, for 157 villages in 2017. In Lombok Utara a regulation was drafted to allocate village funds for capacity building of village governments.

Regulation on Village Authority in Trenggalek, allows villages to co-finance health, education, and CRVS activities.

In Aceh Barat, district and provincial technical teams signed an MOU to mainstream basic services in planning and budgeting at the district level. The MOU is the first step in gaining commitment from government to include basic services in the planning and budgeting at the district level. The next steps will be to develop regulations and to move the practice down to the village level.

LOCAL REGULATIONS TO SUPPORT BASIC SERVICES

Aceh

CentralJava

EastJava

NTB


Table 1. Comparison of Village Budgets 2016–2017 in West Aceh (in IDR million)

Posyandu (million) PKK (million) PAUD (million)

Village 2016 2017 2016 2017 2016 2017

Peuribu 20.0 24.6 14.4 20.0 6.0 6.0

Simpang Peut 20.0 23.0 20.0 23.0 4.0 6.0

Seuneubok Teungoh 17.9 22.0 15.5 22.0 – –

Total 57.9 69.6 49.9 65.0 10.0 12.0

In the village of Mattiro Baji in Pangkajene Islands (South Sulawesi), improved interactions between the communities and village government resulted in a decision to fund construction of an early childhood development centre (PAUD) and a health facility. The village allocated a total of IDR 253 million (AUD 25,300) for the health and education sectors in its 2017 budget, which is 28 times its allocation in 2016.

Additional village budget allocations for health and education sectors were also seen in Pemalang and Pekalongan, Central Java. A workshop held by TAF CSO partner FORMASI in early 2017 encouraged the Camat of Petungkiryono and two village heads in Pemalang to host discussions with wider village stakeholders, regarding the village government’s ability to allocate more funds to finance health and education services. Village leaders agreed and the new allocations are reflected in the 2017 budgets of the three TAF social accountability program villages in Pekalongan, and two villages in Pemalang. This represents a significant change in village allocations, with most villages in these two districts not having previously allocated significant budgets for the two sectors in 2016.

Box 7. Replication, Scale-Up, and Spillover Effects

Government commitment to sustaining effective programs is evidenced by allocation of their own resources, including staff and budget, to the continuation or replication of KOMPAK-initiated activities. There are multiple examples of this across all KOMPAK outcome areas:

• After taking part in the Camat training supported by KOMPAK, the provincial government of East Java replicated the training using local government budget. Funding for the training (approximately IDR 1 billion/AUD 95,000) was provided by the Provincial Government Fund (APBD). Ninety selected Camat Secretaries completed the replication of the leadership and management training package for subdistrict heads and secretaries.

• In Central Java, the district government has funded PTPD training for all villages in the KOMPAK-supported subdistricts, and in Aceh the governor instructed that PTPD training be conducted in all subdistricts in the province, funded through APBD 2018.

• In PangKep (South Sulawesi), the Bupati requested to include all subdistricts in KOMPAK’s efforts to support CRVS. In May, the first meeting between 13 Camat and 63 village representatives occurred, and a declaration of commencement of the integrated civil registration program was signed.

• The Aceh Barat district government and University of Indonesia Ar Raniry have signed an MOU to scale up the UMD program to 301 villages in the district.

• The East Lombok district government has allocated IDR 150 million (approximately AUD 15,000) from its 2017 budget to replicate training for SID operators to serve in all of the district’s 239 villages.

• Bondowoso district allocated IDR 500 million (approximately AUD 47,000) to expand UMD partnership with the University of Jember to 61 villages across the district.

• Bappenas has budgeted IDR 15 billion for implementation of technical and vocational education and training (TVET) centres of excellence in six cities, which will be formalised in an MOU to be signed in August.a

KOMPAK has developed a sound integrated model for achieving universal coverage of legal identity, which has been initiated in 16 districts as part of the Frontline Pilot. This design has been adopted in the national CRVS strategy, and thus has the potential for national-scale implementation. The government has indicated interest in expanding the subdistrict strengthening components of the Frontline Pilot, to the more than 7,000 subdistricts throughout the country.

Interventions directed at the subdistrict level have the potential to impact all of the villages in the subdistrict, as the Camats and subdistrict staff use skills and knowledge gained through training to support the villages within their borders. District regulations, particularly those enacted to influence village budgets, impact on all villages in the district. For example, in NTB, district regulations providing villages with authority to plan and budget for village development impact on 628 villages, compared with the 52 identified as villages where KOMPAK is working. These spillover effects increase KOMPAK’s ability to address the gaps that remain in availability and quality of basic services at the community level.

Karawang, Surakarta Raya, Bojonegoro, Denpasar, Medan, and Makassar.


These examples demonstrate significant progress made towards strengthening fiscal transfer policies, making policies more aligned with basic frontline service delivery. Through high-level technical expertise, KOMPAK has contributed to improvements in the formulation of key fiscal transfers (DAK and DID), particularly to incorporate indicators that will drive performance of districts in improving basic services and to strengthen the information/data systems to monitor performance. Results can be seen at the local level, with strong evidence of village governments increasingly allocating funds to support service delivery to benefit the poor and marginalised. KOMPAK and strategic partners have developed models, tools, and innovations that expand the reach of the legal identity systems to the poor, and supported communities to engage in the planning and budgeting process, a first step in advocating for their priorities.5

Information Systems for Data-Driven Policy, Planning and Budget Decision-Making

High quality planning and budgeting by local governments and service units requires the ability to use evidence, and respond to basic service needs, as well as the availability of adequate data. With the increase in fiscal transfers to villages – approximately IDR 100 trillion for more than 74,000 villages in 2017 – villages require better data and information for planning, accountability, transparency, and establishing public services. The central government also requires regular reporting on the outcomes and implementation of Village Law, as well as on the progress of village development, which is measured by basic service variables, facility and infrastructure availability, and accessibility. These requirements drive KOMPAK’s work on strengthening the availability, management, and use of data and information, at both the national and sub-national level (EOFO 1 and EOFO 2).

Village Information Systems

KOMPAK supports evidence-based decision-making at all levels of government, but particularly sub-nationally. There are a broad range of systems available to local governments to help them manage their data, and in this report the general term Village Information Systems (Sistem Informasi Desa – SID), is used for all systems at the village level. SID development and implementation will allow village governments to better identify and respond to the needs of their communities and can be effective tools to enable evidence-based, transparent village development.

5 Evidence of progress towards Intermediate Outcomes 1, 3, 4, and 6, and Project Outcomes P1 O1, P1 O2, P2 O2, P3 O1 P4 O4, P5 O2, and P7 O2; see Annex 3 for Framework with Project Outcomes.

Box 8. AQC – Effectiveness

The M&E framework draws clear links between activities, outputs, and outcomes. Results chaining activities ensure that activities and outputs will lead to outcomes. Quarterly reviews are undertaken to ensure activities remain on target.

KOMPAK has generated significant evidence of the program’s effectiveness, including six significant central-level policy changes from 2016 and early 2017. We have collected 105 stories of change (54 in 2017). PAS data suggests increases in knowledge and skills for participants in KOMPAK events, with an average gain of 45.6 percent (N = 2,700). KOMPAK has successfully supported the development of local regulations that reflect key elements of national regulations. There have been 58 local regulations signed and an additional 70 are in development.

Achievements in this section demonstrate progress towards intermediate outcomes:

IO2: Local government and service units have strengthened systems, processes and procedures.

IO3: Local governments and service units utilise evidence and understanding of local issues to improve services.

IO4: Village governments are more responsive and accountable to the identified needs of their communities, particularly those of the poor and vulnerable.

KOMPAK Working Paper No.1 : A Framework to Seek an Integrated Village Information System.


KOMPAK’s focus is on encouraging the use of information systems to improve the targeting, management, and transparency of village funds, and to facilitate access to data and information by local citizens. KOMPAK also promotes minimum standards for the type of data that is collected and used. This is to promote standardisation and ensure that data collected via SID can be shared with other supra-village systems (information systems run by different ministries for sectoral needs, as well as those used by subdistricts and districts), avoiding duplication of work and potential for error. KOMPAK is supporting village information systems in all of its working areas, as well as work on the village financial system run through MoF (Sistem Keuangan Desa – Siskeudes), and SEPAKAT – a planning and budgeting tool run by Bappenas.

KOMPAK’s SID support is well established in NTB, and there is now evidence of local government taking ownership of SID activities. KOMPAK has been supporting the East Lombok government over the past 10 months to implement SID, which has led to district-wide replication. After initial advocacy, and a series of discussions and training led by KOMPAK, 10 villages in East Lombok had established SID by March 2017. Seeing the improvements that SID could bring, a further two villages outside of KOMPAK’s working areas established their own systems, facilitated by KOMPAK strategic partner LPA-NTB. The district government has since committed to support SID establishment in all villages in the district, and have allocated the budget for this. They plan to draw on the expertise and experience of the 10 system operators who attended the initial KOMPAK supported training, and who have gone on to manage systems in their villages. Ten villages in East Lombok have now all allocated an average of IDR 7.54 million (approximately AUD 24 million) per village from their village budgets to establish and implement village information systems. In general, these funds are used to pay the SID operator fee, website hosting and internet. The East Lombok district government has allocated IDR 150 million (approximately AUD 14,500) from its 2017 budget to replicate training for SID operators to serve in all of the district’s 239 villages.6

This successful example is part of a larger effort by provincial and district governments in NTB, who are actively replicating and scaling-up KOMPAK’s support to develop SID in all villages in KOMPAK districts. KOMPAK conducted a series of training sessions to support villages to use data and information from their SID. SID operators and members of village government from over 100 villages in three districts participated in the follow-up training sessions, which aimed to support implementation of SID by fostering data-driven SID development plans, good practices, and technical guidance. Over 90 percent of participants reported that they were likely to apply the materials and that the workshop supported their work on SID. On average, workshop attendance was associated with a 52.5 percent increase in knowledge related to the development and implementation of a village SID systems.

Mapping of current village systems has been completed in all KOMPAK villages except those in Papua and West Papua (where they have a separate system), so KOMPAK can plan appropriate interventions and monitor changes. Data was collected from 106 villages across five provinces. A summary of findings from the first round of SID mapping data is presented in Box 10.

6 Story of Change, East Lombok, April 2017

Box 9. Baseline Data: Village Information Systems

Data on SID was obtained from the Baseline Survey in 43 villages. Findings were generally consistent with what was found from KOMPAK’s SID mapping survey. In the Baseline Survey, approximately three quarters of villages reported that they had a village information system of some description. Of the villages with SID, nearly 84 percent reported that the data had been updated within the last six months, and 61 percent (19) reported that their SID system was integrated with the subdistrict information system. The primary operator/user of SID was a member of the village apparatus (74 percent) or honorarium staff (19 percent). Sixty-four percent of respondents stated that the primary funding source for SID was ADD, compared with 16 percent who said it was funded by village-generated income (PAD) and 10 percent from DD.

Village office in Cermee, Bondowoso has implemented Village Information Administration System (SAID), mentored by UMD-KOMPAK. The system accommodates the administration needs of the villagers.


Village development in Papua and West Papua faces a number of unique challenges in a context where tribalism is still an integral part of Papuan society. Most village heads are also the head of their clan and therefore possess the power and local knowledge to manage their villages, but not necessarily the administrative skills. KOMPAK, through its LANDASAN work, undertook a political-cultural analysis which identified the village’s existing youth cadres as a potential solution to this issue. With the trust of the village head these individuals support with administrative tasks. In KOMPAK villages 436 cadres, 114 of whom are female, have been particularly effective in managing data and systems for the village, including leading on development of the Papuan village information system known as SAIK.

Box 11. Using the Village Information System in Rarang Selatan Village

After the first conversation with KOMPAK’s East Lombok District Coordinator, a member of the newly appointed Rarang Selatan village government started doing his own online research about system models and software. He came across a freeware example made available by Indonesia’s Community Based Information Network (combine.or.id) and started to set it up for village use. He then attended the system operator training arranged by KOMPAK, and Rarang Selatan is now using a computerised system to improve a range of village governance functions to better serve more than 1,200 households.

Village data has been compiled from existing sources including the district population registration office (Dukcapil) and then verified within each sub-village. Individual data including age, sex, education, employment, and access to government programs has been added, enabling the village government to map service needs, poverty, and eligibility for various forms of social assistance. This information will be used to create the next village development plan and budget, and is already being used for reporting to the district on access to national poverty reduction programs.

One of the greatest benefits for the village government is the increased efficiency in issuing the wide range of documentation required by village residents. The system includes ready to print templates for all letters needed, such as for issuing personal identification cards, birth and marriage certificates, business registration, certifying poverty status, thereby impacting on eligibility for social protection programs. Documentation required to provide and update family cards, one of the most important forms of identification in Indonesia, can be directly generated from the system. All of this is now provided free of charge to the village population, and in a fraction of the time that it took previously.

Story of Change, April 2017

Empowerment cadres input Sistem Administrasi dan Informasi Kampung (SAIK), a tool that consolidates data for better oversight of basic services.

Box 10. SID Mapping

Minimum Data Availability

Type of Data Percentages of Villages with Data (N=106)

Allocating budgets for data management:• 89.3% of villages have allocated budgets for data

management• Source of allocations: village budget (68.8%) and

APBD (31.2%).

Data management (categories are not mutually exclusive):● 95.2% of KOMPAK’s villages store their data in the

form of print documents● 89.5% of KOMPAK’s villages store their data in the

form of electronic documents● 41.9% of villages save data in offline database● 32.4% of villages save data in online database.

Population and development 99.1

Health 90.6

Education 92.5

Poverty 85.8

Public facility 63.2

Economic 72.6

Village community institution 76.4


In Papua and West Papua, KOMPAK supported the implementation and use of SAIK – village information and administration system. Training on operating SAIK was delivered to village cadres aimed at developing knowledge and skills related to collecting, managing, and using data for village planning and budgeting. The SAIK training sessions were conducted with 425 village cadres in 208 villages in Papua and West Papua. Some village cadres have become trainers themselves and are now coaching additional cadres to develop SAIK in other areas of Papua and West Papua. The Papua district government has since budgeted funding to develop SAIK in specific areas and six districts (Lanny Jaya, Asmat, Fakfak, South Manokwari, Sorong, and Waropen) are committed to procure laptops to develop SAIK.

There are also efforts to improve ability to share data across systems for planning and budgeting purposes. Village cadres have been trained to integrate data from SAIK into SAID – the subdistrict information system. This will allow service units to easily prepare integrated budgets and plans with other villages and service units. This will improve the operation of both health and education service units in Papua. The government of Jayapura district has allocated their budget for SAID development in Sentani Timur subdistrict and the head of the subdistrict became penggerak (champion) for other subdistricts.

Supra-Village Information Systems

In the last six months KOMPAK has been working on two supra-village information systems: Siskeudes and SEPAKAT. The former is a tool developed by the Ministry of Finance and focuses on managing village budgets, while the latter is a tool developed by KOMPAK to help improve planning and budgeting.

To improve the transparency and management of village budgets, KOMPAK has been supporting the use of the Village Financial System (Siskeudes) from the Ministry of Finance. KOMPAK in collaboration with local governments supported two events promoting the development and usage of Siskeudes. In total, there were 125 participants (22 percent female) from Biruen (Aceh) and Bima (NTB). The goal of the workshop was to increase the knowledge and capacity of village officials regarding the use and knowledge of Siskeudes. Nearly 75 percent of respondents reported that the training benefitted their work in the village and believed that the implementation

Box 12. University Partnerships to Support Village Information Systems

The village information system provides a mechanism for village government to use data to inform policy, planning and budgeting decisions. As part of KOMPAK’s Universitas Membangun Desa (UMD – Universities Building Villages) grant program, KOMPAK supports universities that provide innovative opportunities for students participating in the community service program (KKN). The goal of the UMD Jember program was to develop, implement and/or support local government use of Village Information Systems (SID) for the purposes of administration, budgeting, planning, using data to inform policy, and transparency. Ninety students (50 percent female) worked with citizens and the local and village government in 71 villages in the district of Bondowoso. Participating students expressed very positive sentiments about the program and their experiences, 91.6 percent of students were interested in continuing the work done during UMD.

Jember University officials expressed the university’s commitment to fostering community engagement and building synergies with stakeholders that would accelerate, strengthen, and broaden the scope and productivity of KKN. Local government officials (village heads, Head of Financial Affairs) and community members were supportive of the program, believed it supported village development goals, and were willing to allocate a budget to support it. They did note a few challenges, which included: limited capacity at the local level (e.g. human capital and IT infrastructure) and the relatively short time allotted for training local villagers.

Based on the positive UMD experience in Bondowoso, KOMPAK’s sub-national team in Pacitan (East Java) approached Sekolah Tinggi Ilmu Teknologi (STIT) to replicate the UMD Jember program in Pacitan. A pilot project for SID development through KKN, using SID software that was developed by COMBINE (a freeware) was implemented in ten villages in Pacitan district. Volunteers trained through the pilot worked with 50 STIT KKN students in five villages, verifying population data that will eventually be included in the villages’ SID.

Further expansion in Pacitan includes training of students from University of Sebelas Maret and University of Gajah Mada to provide SID support in an additional 26 villages.

The UMD program in partnership with The Jember University is now being replicated to 61 villages in Bondowoso District.


of Siskeudes in the village would result in better governance. On average, event participation was associated with a 74.8 percent increase in knowledge related to the development and usage of Siskeudes. One of the drawbacks of the vast array of information systems currently used, is that it can lead to inefficiencies in spending and resource allocation, particularly at the district level.

KOMPAK and Bappenas conducted a review and needs assessment of poverty reduction programs in Pacitan (East Java) and Bantaeng (South Sulawesi), and based on the findings KOMPAK was asked to develop a tool called SEPAKAT to improve the efficiency and targeting of planning and budgeting. The overall goal of this work was to strengthen the quality and usage of poverty databases, establishing agreed poverty indicators, fostering cross-sectoral and regional understanding of poverty data, and improving connectivity among BPS macro data (e.g. Susenas, Sakernas, PODES, and BDT) and other data sources.

Following the needs assessment, KOMPAK piloted the design and analysis system for SEPAKAT in the same locations. Twenty-one provincial and district level officials (44 percent female) attended the workshop. Key findings indicated that 95 percent of participants reported that SEPAKAT could be useful to their work; however, most participants were unlikely to use BPS macro-data (Susenas, Sakernas) to inform planning processes. The strength of SEPAKAT in relation to other information systems is its ability to compare budget allocations against poverty indicators, which will enable provincial governments to make data-driven decisions.

Innovations

KOMPAK optimises the use of existing resources and networks to deliver innovative development solutions to help improve access to basic services and increase economic opportunities for the poor and vulnerable. Activities are cross-cutting, and results are relevant to all three EOFOs.

KOMPAK continues to identify innovative approaches to reach local governments and communities through technology, non-traditional partnerships, and new ideas to improve basic services. This is an underpinning approach, which allows KOMPAK to support the GoI in many ways. KOMPAK has greater flexibility in its planning and budgeting cycle, as well as its procurement processes, allowing KOMPAK to engage with non-traditional partners and to bear greater risk. KOMPAK can test proof of concept and innovative approaches to scale, enabling GoI to see results before committing public money to nation-wide adoption. Over the last six months KOMPAK has been working on innovations in health services, knowledge sharing and economic opportunities.

Innovations in Health Services

Recognising the vital role of Puskesmas, KOMPAK (through sub-national staff and local partners) assisted the government of Pangkep district in South Sulawesi to improve the coverage and quality of basic health services in four subdistricts located in the islands. The assistance was delivered through training on human resource management and models of performance-based management systems. One example of the change this created is at the Liukang Tuppabiring Utara Puskesmas. After the training, staff implemented some key changes including opening times and the availability of health staff. See Box 13 below for more details.

INISIATIF, TAF’s local partner in East Java, has been successful in advocating for the adoption of the Bunda TexTalk (BTT) a short-messaging-service (SMS)-based application by four puskesmas in Trenggalek and Pacitan (East Java). Most of the villages in the four subdistricts are remotely located, which limits the contact that pregnant women have with midwives. The BTT application intensifies communication between village midwives, other health workers and pregnant women (and their families) to the four community puskesmas. By increasing the contact between expectant mothers and midwives, BTT is expected to increase women’s knowledge and ability to take care of their pregnancies and hence will reduce the risk of maternal and infant mortality. The heads of puskesmas agreed to adopt the application and INISIATIF facilitated adjustment of the system to local needs and

Achievements in this section demonstrate progress towards intermediate outcomes:IO2: Local government and service units have strengthened systems, processes and procedures.IO4: Village governments are more responsive and accountable to the identified needs of their communities, particularly those of the poor and vulnerable.IO6: Communities are increasingly advocating for their priorities in relation to village development, including access to frontline services.IO7: The enabling environment increasingly supports off-farm employment opportunities.


held training sessions to use the application for 59 midwives and 41 integrated posyandu cadres (all participants were women) in both districts. BTT will not only cover four villages that TAF-SAPP-CRVS program focuses on, but will be used by pregnant and breastfeeding mothers in 47 villages in the four subdistricts.

In the subdistrict of Pule, Trenggalek, where the application has been piloted since April 2017, 349 pregnant women and 96 of their husbands from 10 villages are registered in the system. Midwives and village workers have sent 10,640 SMS texts with customised content (based on estimated due date) to pregnant women and their husbands. Ten village heads in Pule subdistrict are committed to allocate funds for BTT in their 2018 budgets.

Innovations in Knowledge Sharing on Village Law

Supporting the effective implementation of Village Law is one area in which KOMPAK has identified innovative approaches to working with both local governments and communities. For example, Ruang Desa, a smartphone application, connects village government with facilitators who can answer questions and provide guidance via free chat or telephone call function. The app was developed in partnership between the MoV and Ruang Guru, with technical assistance from KOMPAK. A pilot study of Ruang Desa was conducted in three provinces where KOMPAK is working (NTB, Aceh, and East Java) during which 261 users (215 male and 46 female) from 100 villages in 10 districts used the application. There were 941 consultation requests documented during the pilot. KOMPAK was awarded the 2017 Technical Innovations Award from Abt Associates for the Ruang Desa Application.

How effective was the app? At least one question was submitted by 178 village officials, and all 63 facilitators answered at least one question. However, only 42 percent of the submitted questions received a response. As KOMPAK works with the MoV to take the Ruang Desa app to scale, the technical expertise of facilitators and their familiarity with relevant regulations and guidelines need to be carefully considered.

Box 13. Improving Health Services in Pangkep (South Sulawesi)

‘The first step is improving the service management. Medical personnel should be available for 24 hours. We are now also more active in conducting home visits’, Muhammad Ruslan, Head of Liukang Tuppabiring Utara Puskesmas explained. He added these recent changes are the results of the collaborative work of the Puskesmas leadership initiative, the subdistrict and village government, as well as support from KOMPAK. Ruslan also noted that the Health Office of Pangkep now provides more attention, appreciation and advocacy for the needs of the Puskesmas under his supervision.

Puskesmas Liukang Tuppabiring Utara is also coordinating with the Mattiro Kanja village government to support the Puskesmas by allocating funds for health service in the Village Medium-Term Development Plan (RPJMD). The positive impacts of these collaborations are now emerging. Muzakkir, Mattiro Kanja Village Head, agreed that ‘Currently, the Puskesmas services are much better,’ as the staff are now more open and easily accessible by the public. For example, during 2016 the average number of patients seen each day was 3–5 people; and during the first half of 2017 that jumped to 10–40 people per day. The health centre is now open 24 hours per day (compared to 3 hours per day in 2016).

These improvements have contributed to the public health conditions in his village. Mitra, a Mattiro Kanja female villager, says that people have more awareness to check into the Puskesmas, and noted that, ‘Village midwives are now active in visiting our houses’.

Ruslan added that the health centres will continue to improve to achieve the minimum standard of care as required by the Ministry of Health. Another effort currently being piloted is implementing a mechanism for collecting public feedback or response. ‘Feedback from the public in the form of questions, complaints, or suggestions will help us constantly improve the provision of best services to the Tuppabiring Liukang Utara people,’ he concluded.

Story of Change, Supervision Mission, May 2017

Ruang Desa application works through a free SMS chat and phone call function and provides access to learning resources including video tutorials, Frequently Asked Questions (FAQs), references to relevant regulations and smart guide books.


As discussions on the implementation of Village Law continue to focus on quality use of village funds, transparency, and accountability, there is also growing interest from ministries to identify strategies to better engage with communities and community institutions to strengthen the quality and oversight of development processes in the village. KOMPAK, in partnership with Australian Indonesia Partnership for Justice (AIPJ), supported an innovative approach to engage with communities to increase awareness of the use of the village fund and to promote transparency – the TRATA Jaga Desa game. The game aims to stimulate community dialogue in the village on the quality of village fund utilisation and to encourage greater community oversight.

Training of trainers (ToT) was carried out in four provinces where KOMPAK is working (NTB, South Sulawesi, Papua, and Papua Barat) involving a total of 120 participants, and targeted women and youth specifically, to encourage them to play a more active role in community.

Innovations in Economic Development

Social entrepreneurship is a sustainable social empowerment-based business model designed to reduce poverty and expand employment opportunities by promoting social collaboration, environmental protection, and financial sustainability. Together with the government and the private sector, KOMPAK supported an incubation program/capacity building program for social entrepreneurs who have identified solutions that fit with KOMPAK priorities. A total of 14 social entrepreneurs attended the Unltd Indonesia Incubation Program – now called RISE (Rich and Impactful Social Enterprise incubation) – to develop their business plans through mentoring, workshops, group coaching, networks and initial funding. Two of the programs selected to receive scale-up funding include TEMU7, a matchmaking website suitable for low-skilled workers, and Fingertalk8, which aims to provide greater job opportunities for the hearing impaired.

In technical and vocational education and training (TVET) work, KOMPAK has supported Bappenas in building the capacity of industry associations and related technical ministries to develop national standard competencies (Standar Kompetensi Kerja Nasional Indonesia, SKKNI) as part of the Skills Development Centre model. KOMPAK brings innovation to TVET by working directly with industries to provide training in traditional high schools (SMK). In selected SMK, students will receive training based on SKKNI and conducted by trainers from the industries, including retired employees. Students will also have the opportunity for on-the-job training and experience. Bappenas has budgeted IDR 15 billion (approximately AUD 1.4 million) for implementation in six cities that will be formalised in an MOU to be signed in August.9

In conducting its market linkages design work, KOMPAK employed an innovative Design Sprint (a user-centred approach adapted from the IT sector) in Pacitan (East Java), which included local government agencies, micro and small entrepreneurs, experts in linking village-based products to market, local facilitators, sellers, and buyers. The Design Sprint takes place over 2.5 days, during which time participants go through the process of site visits to local micro and social enterprise, identifying problems, and developing solutions with critical feedback. The process ensures that the designs are fit for purpose and have buy-in from the local government and other key stakeholders right at conception. Other than being a rapid process to develop solution ideas that are rooted in the local context, design sprints are a powerful platform for connecting a variety of stakeholders and obtaining political support for future testing of the solution ideas. Prototypes can be scaled-up to any location, and the subject matter can be adapted depending on the local context.

7 See the TEMU website here: http://temu.co.id/.8 Find out more about Fingertalk here: https://www.facebook.com/deafcafe.fingertalk/.9 Karawang, Surakarta Raya, Bojonegoro, Denpasar, Medan, and Makassar.

KOMPAK supports Temu in developing innovation to connect job seeker and job provider.

TRATA socialisation for villagers in Sorong District, Papua Barat by Karang Taruna.


KOMPAK’s innovations work has and will continue to provide GoI with a range of tested innovative approaches in the areas of basic service delivery and economic opportunities. This will enable the GoI to select those most successful for scale-up or replication.

4. Leveraging Resources and Value for Money

KOMPAK’s value for money (VfM) framework is based on the DFAT VfM principles, which are critical for KOMPAK to enable the program to contribute towards DFAT’s strategic objectives. The framework examines the ‘4Es’ of Economy, Efficiency, Effectiveness, and Ethics.

KOMPAK works with different partners to leverage financial, social, and human capital resources. During this period KOMPAK worked with the GoI and various other partners to leverage resources and enhance outcomes of activities, such as training for local government, data collection and knowledge sharing, and public financial management and information technology. A full VfM report addressing all of the ‘4Es’ and the eight main principles will be completed in early 2018. For the purposes of reporting on the period January to June 2017, KOMPAK selected key measures from each principle to report against.

Minimising Operational and Management Costs as the Program Continues to Grow

While program costs have risen substantially over this period, operational/management costs have remained largely the same.

The ratio of international and national staff/consultants hired was approximately 1:20. The number of long-term international staff has remained the same for this reporting period, despite the scale-up of activity at the sub-national level. There were 68 competitive procurements over the reporting period, which resulted in total cost savings of AUD 620,000. This represents an average cost saving of AUD 9,128 per procurement undertaken.

Box 14. AQC – Innovation and Private Sector Engagement

KOMPAK continues to work with non-traditional actors in development to deliver innovations for basic services and economic opportunities. There was more engagement with the sub-national level in terms of KOMPAK’s support for local innovation initiatives during this reporting period (workshops in NTB, Central Java, and Aceh).

Under the Universitas Membangun Desa (UMD), KOMPAK successfully leveraged four universities to focus their KKN thematic programs to pilot innovative partnerships with local governments and communities towards addressing priorities in KOMPAK results areas:

• Universitas Jember’s UMD work on SAID/SIDs in Kabupaten Bondowoso (launched 10 July 2017) has motivated the Kabupaten to replicate the approach and tool in 62 further villages.

• Universitas Islam Negeri (UIN) Ar Raniry has signed a Memorandum of Understanding with Kabupaten Aceh Barat to continue the work catalysed by KOMPAK, progressing to link the same with BUM Gampong. Wakil Bupati Aceh Barat officially launched the Water Hyacinth Craft Center, a result of the work by UIN Ar Raniry, which supports the village community, with a focus on women.

• Universitas Parahyangan, focusing on village monography data, has also reached an agreement with Kabupaten Garut to continue its work with 42 subdistricts (424 villages).

• The incubation program with Unltd and Kinara Indonesia, which tested incubation and scaling-up approaches through non-traditional actors, concluded in June 2017:- Against KOMPAK’s investment of AUD 137,500, six of the 11 social enterprises incubated under the Impact Accelerator

Program are engaged with investors and are scaling up, with the businesses valued over IDR 5.5 billion.- Against KOMPAK’s investment of AUD 140,000, another six of the 14 social enterprises of Incubation Business are

engaged with investors, and have received over USD 64,850 in grants to leverage the business. - A total of 21 out of 25 social enterprises incubated are connected to the market and have explored networking

opportunities arising from the collaborative environment established through KOMPAK’s Innovation Challenge Fund.


Figure 4. Program vs Operational/Management Expenditures 2015–2017

Leveraging Resources and Relationships to Maximise Impact, Buy-In, and Reach

KOMPAK’s Governance mechanisms ensure a high level of engagement with all relevant stakeholders. During this period, KOMPAK has held three Thematic Working Group meetings, and two Technical Meetings at the central level, and established its governance at the provincial and district levels bringing together key counterparts to discuss activity concepts and work plans. This is in addition to KOMPAK’s daily interactions with its partner government ministries. A joint supervision mission with all Technical Committee members’ participation also took place in two provinces, NTB and South Sulawesi, in June 2017. This is a joint supervision between GoI, GOA and KOMPAK and was attended by the following ministries; Bappenas; the Coordinating Ministry for Human Development and Cultural Affairs; the Ministry of Villages, Development of Disadvantaged Regions and Transmigration; the Ministry of Home Affairs; and the Ministry of Finance.

Successfully leveraging contributions from GoI is important and represents an indication of how well KOMPAK’s interventions are owned by and seen as essential by the government. During this period, KOMPAK leveraged the following GoI contributions:

• In Papua the government allocated IDR 250 billion (approximately AUD 24 million) to Gerbangmas Hasrat (2017) to support basic services and economic empowerment in 29 districts.

• In Aceh Barat, Head of Bappeda approved allocation of IDR 7,500,000 (approximately AUD 700) from Dana Desa funds to accelerate birth registration and help manage birth and death certificates.

• Local governments in four of PEKKAs provinces have allocated a total of IDR 837,600,000 (approximately AUD 79,000) to support PEKKA Paradigta Akademi activities in local villages.

• TAF and their local partners are advocating for village governments to allocate funds for basic services. Their work has resulted in large increases in village budgets for 2017. In many cases these increases are significantly greater than the partners’ investment. For example, the village of Mattiro Baji, Liukang Tuppabiring Utara subdistrict, increased its budget by IDR 244 million (approximately AUD 23,000), which is much higher than the approximately IDR 35 million of YASMIB’s budget spent in the village.

8,000,000.00

7,000,000.00

6,000,000.00

5,000,000.00

4,000,000.00

3,000,000.00

2,000,000.00

1,000,000.00

-Jan-Mar ‘15 Apr-Jun ‘15 Jul-Sept ‘15 Oct-Dec ‘15 Jan-Mar ‘16 Apr-Jun ‘16 Jul-Sept ‘16

Operations

Oct-Dec ‘16 Jan-Mar ‘17 Apr-Jun ‘17

Program

874,010.39 945,568.75

2,331,521.07

1,925,680.00

2,588,776.71

1,087,127.47

966,678.18

2,683,442.71

906,552.33

4,037,480.04

859,839.66

3,416,326.18

1,063,383.52

4,549,633.30

956,909.05

4,783,188.30

965,476.78

6,987,266.61

643,219.75347,979.10


• The Frontline Pilot leadership and management training for subdistricts was replicated in East Java with approximately 90 subdistrict staff. Funding for the training (approximately IDR 1 billion/AUD 1 million) was provided by the East Java Provincial Government Fund (APBD).

• The PTPD training has been replicated in Central Java, with the district government funding training for all villages in the KOMPAK-supported subdistrict; and in Aceh the governor has instructed that PTPD training be conducted in all subdistricts in the province, using 2018 APBD.

• Ruang Desa is planned for scale-up. KOMPAK is working to make improvements to the mobile app in accordance with MoV requests. Scale-up is planned for 15 provinces and will mostly be funded by GoI budget.

Embedding Value for Money (VfM) across KOMPAK’s Operational Platform to Ensure Impact and Results

In the first half of 2017 KOMPAK initiated a review and revitalisation process to ensure KOMPAK’s structure and systems remain fit for purpose. Key recommendations were made to ensure an increased focus on implementation in the regions. KOMPAK has implemented or begun implementation of all recommendations from the review. It is expected that these changes will result in a more appropriate balancing of resources between national and sub-national levels and greater efficiencies in relation to activity implementation.

In terms of planned vs actual expenditures, KOMPAK has been delivered as planned, with only a minor variance of 1.3 percent until end of June 2017, as shown in Table 2 below:

Table 2. Planned vs Actual Expenditure

Expenditure Category

Planned Budget

Actual Expenditures (AUD) Total % Variation

Jan-Jun ‘15 Jul-Dec ‘15 Jan-Jun ‘16 Jul-Dec ‘16 Jan-Jun ‘17

Operations 9,429,720 1,819,579 1,730,347 1,873,231 1,913,223 1,922,386 9,258,766 1.8%

Program 34,051,033 2,679,500 4,515,657 6,720,923 7,966,014 11,770,455 33,652,549 1.2%

Total 43,480,753 4,499,079 6,246,004 8,594,154 9,879,154 13,692,841 42,911,315 1.3%

KOMPAK has delivered 98.7 percent of the planned budget in accordance with the forecasted program and operational expenditures.

Progress towards outputs, using a traffic light system (green, yellow, red), was reported for 26 outputs from 11 activities, scheduled to be completed in the first half of 2017. During this reporting period, 62 percent of KOMPAK’s outputs were delivered on time. Examples of delays included development and review processes for training materials taking longer than expected, ongoing discussions with the GoI regarding the design and implementation of activities being delayed, and slow procurement processes.


Figure 5. Progress Towards Outputs, January–June 2017

KOMPAK teams regularly review progress towards outcomes, on-time delivery, challenges, risks, and expenditures during KOMPAK’s quarterly review process. Quarterly reviews were held on schedule during this reporting period. The Quarter 1 report was shared with GoI and GoA, and the Quarter 2 report was shared as part of the Thematic Working Group meetings in July. The Strategic Advisory Team (SAT) submitted recommendations based on their visit in late 2016. During this first half of 2017, KOMPAK has addressed and implemented all recommendations. The SAT will conduct a visit in August 2017.

Promoting Transparency and Accountability with Partners

During this period, KOMPAK provided Bappenas with all required quarterly reporting on activity budgets, expenditure, and work plans with all KOMPAK partner line ministries. KOMPAK has now put in place an effective system for regular reporting to GoI against the work plan; this includes all requirements for the BAST reporting required by the Government of Indonesia.

Box 15. AQC – Sustainability

KOMPAK supports GoI programs and priorities and leverages GoI investments to ensure activities are sustainable. KOMPAK has succeeded in enabling investments from local governments.

For example, the Frontline Pilot leadership and management training for subdistricts was replicated in East Java with approximately 90 subdistrict staff. Funding for the training (approximately IDR 1 billion) was provided by the East Java Provincial Government Fund (APBD).

The PTPD training has been replicated in Central Java, with the district government funding training for all villages in the KOMPAK-supported subdistrict; and in Aceh the governor has instructed that PTPD training be conducted in all subdistricts in the province, using 2018 APBD.

KOMPAK’s advocacy and support of local (district) regulations impacts on KOMPAK villages, and also influences other villages in the district. For example, the PerBup on allocation of village funds for basic services in Bima (NTB) will influence village budgets in 191 villages. Another example is the issuance of the PerBup on village authority in East Lombok (NTB) and Trenggalek (East Java), which allows all villages in the two districts to allocate funds to co-finance health and education services.

16

4

6

On Track Delayed (1-3 months) Delayed (>3 months)


In the last six months, KOMPAK has shown evidence of progress towards its targeted End-of-Facility Outcomes. Related to the fiscal transfers, KOMPAK’s policy inputs and technical assistance have enabled local governments and villages to make better use of the funds towards improving health and education. KOMPAK’s work has also enabled change in service delivery capacities and systems, especially related to legal identity and subdistrict services. Strengthening information systems has been an important focus of KOMPAK in its quest to help the government to improve planning, budgeting, and decision-making, as well as to improve transparency for communities. KOMPAK’s work on information systems has focused largely at village level, with some interventions also at subdistrict and district level. More efforts will be made in the next six months to link up these various information systems and improve their interoperability. Through its work with CSO partners, KOMPAK has also started to test various tools and mechanisms for communities to hold village governments accountable towards inclusive development processes and quality basic services. KOMPAK continues to pilot innovations throughout the three outcome areas, and in this reporting period innovations in health, legal identity and economic opportunities have emerged. In the next six months KOMPAK will document these innovations and figure out how to take them to scale with government and private sector resourcing. All of this progress was possible through: (i) KOMPAK’s efforts to expand sub-national activities where there is greater potential for more rapid change and results; (ii) consolidating the national and sub-national activities; and (iii) using innovations and piloting to leverage changes in policies, service delivery systems, and community-level capacities.

Lessons Learned

Lessons learned during this period include:

• A multi-province approach is creating learning opportunities for KOMPAK and government. Implementing activities across provinces enables learning between sub-national teams and creates the opportunity to connect, discuss problems, and share ideas. During this period, KOMPAK consolidated planning and reporting processes to ensure cross-province representation.

• Identifying champions has been critical for moving initiatives forward. Working with local governments on multiple activities is successful when a champion within the government is identified. This eases engagement and helps with coordination of activities. Regular coordination and communication with these champions and with the local government will continue to be held to update partners on implementation progress.

• Evidence of a working model, availability of local budget, and technical assistance can lead to replication and scale-up. In KOMPAK locations where a pilot has been tested and considered successful and where KOMPAK has played a facilitation or technical assistance role, local budget has been leveraged to support scale-up to other locations.

Challenges

Challenges experienced during this reporting period include:

• Managing government partner expectations with increased implementation underway. As implementation increases, partner governments are requesting support at an accelerated rate. There has thus been a renewed need to manage both central and local governments’ expectations.

• Conflicting government policies and regulations. KOMPAK continues to experience situations where work at the local level is compromised by conflicting advice (or lack of) from national government and regulations. KOMPAK has also experienced situations where national regulations are in place, but there are no instructions for developing local regulations, and this has often left local governments confused and lacking confidence to act.

5. Lessons Learned, Challenges, and Future Priorities


• Coordination and integration of all KOMPAK activities in working areas. There are challenges related to managing implementing partners. Accountability issues, as well as capacity between national partners and their local CSOs, require ongoing management. Communication and coordination between KOMPAK team members and implementing partners has also been challenging at times.

• Regular changes to staffing within KOMPAK’s key partner ministries. Changes to key government partner staff has meant KOMPAK has had to apply a heightened approach to communicating KOMPAK with a variety of stakeholders.

Priorities July to December 2017

Priorities for the next six-month period include:

• High quality implementation at sub-national level. KOMPAK will work to ensure high quality implementation in all intervention areas continues throughout 2017. Additional staff have been deployed to the field offices to ensure appropriate support for the implementation of activities. A team of dedicated technical specialists in Jakarta will also provide technical support to the provinces.

• Continued focus on rigorous data collection and analysis to inform programming. KOMPAK will continue to provide evidence of progress towards outcomes and to feed back into the programs to improve implementation. Efforts for increased data analysis and the documentation of lessons and good practices have been put in place and will be implemented in the upcoming six-month period.

• Increased efforts to communicate results. KOMPAK has developed new strategies to disseminate results to its audiences. A revamped website, social media proposal, and multimedia presentations are among the several new mediums for dissemination of KOMPAK’s work.

Box 16. AQC – Risk

KOMPAK continues to actively identify and manage program risks using the Risk Management Plan and Risk Register. The register is reviewed and updated on a monthly basis, and informs day-to-day operations and work planning. A monthly review of ‘high’ risks is undertaken by the Executive Team. The Executive Team keep DFAT abreast of high risks through regular communication, and formally send DFAT the list of high risks every two months.

For example, an ongoing risk for KOMPAK relates to KOMPAK’s sub-national work in terms of it being scaled up efficiently/effectively, and in terms of ensuring its coherence with national activities. Another risk relates to innovation initiatives not being ‘mainstreamed’ into KOMPAK’s work. To help mitigate these risks, and acknowledging the evolution of the program, KOMPAK recently developed and implemented a ‘revitalisation strategy’. Among other things, this involved a restructure of personnel to realign staff to ensure a greater focus on sub-national scale-up and coherence between national and sub-national activities, as well as reposition the innovations team within the program team to help further embed innovations in program activities.

Another example relates to KOMPAK’s BAST reporting. Acknowledging the potential risks to the program of ineffective BAST reporting, as well as the challenges of BAST reporting across five ministries, KOMPAK allocated resources to compile data and regularly liaise with GoI counterparts. This has helped respond to Bappenas’ requests for quarterly BAST report updates and resulted in KOMPAK receiving a Quality Award from DFAT for ‘Best Compliance with Indonesia’s BAST Reporting’.

An ongoing risk for KOMPAK is the varied fiduciary capacity of partners. To help manage this risk KOMPAK employs a variety of strategies. This includes structuring acquittal reporting requirements according to the capacity of partners, supporting the capacity building of partners and undertaking thorough due diligence assessments prior to contracting.


Annex 1. Finance Report

KOMPAK’s expenditure continues to track well and in line with forecasts. KOMPAK spent 98% of its expenditure target over the reporting period, and 99.98% of its 2017/2017 financial year budget allocation from DFAT.

Total KOMPAK expenditure over the reporting period was $13.69 million. This represents a 39% growth in expenditure on the previous six months. Program implementation costs rose from 80% of total expenditure over the previous six months to 86% of total expenditure over the reporting period. These two points demonstrate KOMPAKs acceleration of program implementation. It is expected that the proportion of total costs spent on program implementation will remain at about this level.

Annexes

Figure A. Jan-June 2017 Expenditure vs Workplan Budget Remaining

Total Expenditure Workplan Budget Remaining

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Outcome 1 Outcome 2 Outcome 3

Forecasts Actuals

Figure C. Outcome Expenditure vs Forecast (Jan-June 2017)

Figure B. KOMPAK Expenditure by Outcome (Jan-June 2017)

54%34%

12%

Outcome 1

Outcome 2

Outcome 3

Resource allocations across the three Outcomes over the reporting period are represented in Figure B and Figure C shows forecast vs Actual expenditure by Outcome. As can be seen, actual expenditure differed slightly to what was anticipated, with Outcome 1 expenditure greater than anticipated due to increased demand by GoI to implement key activities in this area of work. Outcome 2 expenditure is slightly less than forecasted, while Outcome 3 was significantly less than forecasted, as activities have taken longer than expected to come to fruition.


Figure D below shows the percentage of workplan budget that has been spent on each Project to date. As can be seen, Projects 3, 4 and 5 have spent nearly 40% of their total work plan budget allocation, while of note, Project 8 as only spent 7.6% to date.

Figure D. Jan-June 2017 Expenditure vs Workplan Budget Remaining by Project

It is anticipated that KOMPAK’s 2017/2018 Financial Year budget allocation may not be in line with the remaining work plan budget. Should this eventuate KOMPAK will endeavor to deliver the work plan as best it can based on available funds.

A summary of KOMPAK expenditure over the reporting period is provided in the table below.

Category Workplan Budget (Jan'17 - June'18)

Jan - June 17 Forecast

Jan-June 17 Actuals

Variance Workplan Budget Remaining

Program Implementation costs

Outcome 1 Subtotal 14,144,667 4,714,889 5,621,768 (906,879) 8,522,899

Outcome 2 Subtotal 10,418,667 3,472,889 3,191,814 281,075 7,226,853

Outcome 3 Subtotal 4,421,667 1,473,889 628,847 845,042 3,792,820

SIP 3,540,000 1,150,000 1,145,155 4,845 2,394,845

Subnational operations 3,544,268 1,085,000 1,182,870 (97,870) 2,361,398

Subtotal Program Implementation Costs

36,069,269 11,896,667 11,770,455 126,212 24,298,814.09

Whole of Program Support

Executive Team 1,440,000 480,000 467,701 12,299 972,299

COB 4,800,000 1,560,000 1,429,291 130,709 3,370,709

SAT 90,000 30,000 25,394 4,606 64,606

Subtotal Whole of Program Support

6,330,000 2,070,000 1,922,386 147,614 4,407,614

TOTAL 42,399,269 13,966,667 13,692,841 273,826 28,706,428

0%

20%

40%

60%

80%

100%

Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10

Spent Remaining


Annex 2. The Frontline Baseline Survey: Summary, Sample/Methods, and Selected Findings

SUMMARY

As part of RPJMN, and the Indonesian Government’s commitment to reduce poverty rates, Bappenas has developed a Frontline basic service strategy to address key challenges effecting service delivery in three areas: governance, access and quality of services, and community empowerment. The Frontline strategy focuses on enhancing interaction, coordination and accountability at the point of service (i.e., Frontline) where government, citizens and service units interact. At the core of the Frontline strategy is a comprehensive and integrated mix of governance, systems strengthening, and community empowerment interventions. In 2017, on behalf of KOMPAK and Bappenas, SurveyMETER collected baseline data about Frontline service delivery in selected KOMPAK and comparison areas to improve understanding about Basic Services for the poor in Indonesia. The survey (Survei Jasa Pelayanan Dasar Pendidikan dan Kesehatan serta Partisipasi Masyarakat—SUPERPAM) examines basic services and community participation related to KOMPAK’s focus areas:

• Responsive and accountable Frontline services (health, education and legal identity).• Inclusive and community-led village development and improved governance.• Increased economic opportunities for the poor in off-farm employment.

The data and information collected provides valuable insight about Frontline service delivery. Data and dissemination products will be made available to GoI partners, DFAT, program implementers, basic service units, village governance institutions, and civil society organizations. The baseline data will be used to:

• Identify “Basic Service” challenge areas so they can be addressed by more efficient and effective targeting of intervention activities designed to improve Frontline service delivery.

• Establish baseline benchmarks essential to measuring change over time and KOMPAK program impacts.

SAMPLE/METHODS

The Baseline Survey was conducted in five provinces, 14 districts, 16 subdistricts, and 43 vilages. A quasi-experimental design was used to randomly select comparison areas (district, kecamatan, desa) and households (poor, non poor) within the village.1 Two types of questionnaires were used: (1) Household (HH), and (2) Community/Facility (COMFAS). Twenty-five households per village (20 poor and 5 non poor) were targeted. As shown in Table A, data was collected from 1,038 households randomly selected from prequalified household listings drawn from a RW/RT prior to survey administration. Households were considered poor if in the last year, a HH member received some form of social protection from the government (e.g., KPS, KIS, KIP, KKS, PKH, BPJS Health).

Table 3. Number of Completed Surveys by Age, Gender and Poverty Status

Male Female Total

Ages17 to 44

Ages45 to 65

Ages17 to 44

Ages45 to 65

Ages17 to 65

Poor 285 122 294 128 829 (79.9%)

Non Poor 80 129 129 (20.1%)

Total 487 551 1,038

1 More details on sampling are provided in KOMPAK’s Baseline Technical Report and SurveyMeter’s Field Report.


The community and facility survey (COMFAS) consisted of 16 different questionnaires administered to government officials (district, subdistrict and village), basic service unit heads, and representatives from related institutions (e.g., BPD, Komite Kesehatan). The 16 different surveys were organized into five books based on level of government or administrative function. The type of survey and the total number completed are summarized below.

• Book 1: District level (Bappeda, Dinas Kesehatan, Dinas Pendidikan, Dinas Kependudukan dan Pencatatan Sipil, Tata Pemerintahan and Dewan Pendidikan). Eighty-four completed surveys.

• Book 2: Subdistrict level (Kecamatan, UPTD Pendidikan, UPT Kependudukan dan Pencatatan Sipil, Puskesmas, and Komite Kesehatan). Fifty-five completed surveys. Only 5 of 16 kecamatan had UPT Kependudukan dan Pencatatan and only 2 of 16 had a health committee (i.e., Komite Kesehatan).

• Book 3: Village (Komite Kesehatan, and Sekolah (SD/SMP)). One hundred and eighteen completed surveys. • Book 4: Village level (Desa and Badan Perwakilan Desa (BPD)). Eighty-six completed surveys. • Book 5: Village level (Posyandu). Forty-three completed surveys.

A summary of the data collected by administrative location, area and survey type is shown in Table 4 below.

Table 4. Administrative Location and Survey Type by Baseline Area

KOMPAK Comparision Overall

Number of Province 5 4 5*

Number of District 10 4 14

Number of Subdistrict 12 4 16

Number of Village 35 8 43

Number of Households (%) 846 (81.5%) 192 (18.5%) 1,038

Number of COMFAS (%) 302 (78.2) 84 (21.8) 386

Note. *Because of budget constraints, there are no comparison areas within East Java.

The goal of COMFAS was to obtain information relevant to KOMPAK’s focus areas that could be triangulated with data obtained from the HH survey and national data. In general, across all questionnaires, data was collected about:

• General Information about the Community, Facility or Household • Community Participation/ Social Accountability• Information Systems • Planning and Budgeting• Institutional Coordination• Incentive Mechanisms• Training/Services• Perceptions of Leadership/Governance• Gender Equality and Social Inclusion.

SELECTED KEY FINDINGS

The two primary objectives of the Baseline Survey were to highlight basic service delivery challenges in Indonesia related to KOMPAK’s focus areas and to establish benchmarks for KOMPAK by which to measure change over time and program impacts. Our sampling methods created comparison areas that were equivalent to KOMPAK areas at the start of program activities. By creating similar groups, potential confounding factors are limited and changes that occur over time are more likely attributable to the program rather than preexisting differences between treatment and control groups. Table 7 highlights selected characteristics from the Desa Survey (Book 4a) and the Household Survey (Book 6). As shown, the groups were statistically similar on most characteristics when the baseline survey was administered.


Table 5. Equivalence of the Comparison and Intervention Group on Selected Attributes

Desa Characteristics: Village (Book 4a) Comparison KOMPAK Overall p-value*

Respondent is the Village Head (ir4a02) (%) 87.5 71.4 74.4 0.30

Population of village (id4a02) (persons) 2,289 5,328 4,763 0.06

Poor (%) 26.1 19.4 20.7 0.15

There is a Village Information System (SID) (si4a01) (%) 12.5 85.7 72.1 0.01

The village office has a computer (id4a15) (%) 87.5 97.1 95.3 0.24

The village office has an internet network (id4a16) (%) 50.0 65.7 62.8 0.41

Has regulation on basic service (ds4a01) (%) 75.0 54.3 58.1 0.28

Amount of DD received in 2016, IDR--million, mean (SD) (ds4a02)

644.4 (54.8) 706.6 (20.8) 695.1 (19.0) 0.41

Amount of ADD expected (2017) IDR--million, mean (SD) (ds4a14)

559.6 (285.4) 809.8 (372.1)

762.2 (367.7 0.08

In the past one year, there have been complaints by villagers about education, health and civil records (pa4a01) (%)

62.5 77.1 74.4 0.39

Household Characteristic; Household (Book 6)

Poor (%) 79.7 79.9 79.9 0.95

Household size (mean) 4.2 4.0 4.0 0.11

Female (%) 47 49.6 49.1 0.17

Birth certificate (<18 years of age) (ar0608) (%) 77.5 78.1 78 0.81

Birth certificate (Can show, <18 years of age) (%) 38.4 40.2 39.8 0.57

In the last year, I attended a village planning meeting (Musdes) (%)

32.8 29.1 29.8 0.31

In the past one year, have you or other household members ever complained about (Education, Heath, CR or public works)? (%)+

21.9 19.5 19.9 0.46

Did you get a response from complaint? (%) 64.3 73.9 72.0 0.22

Were you satisfied? (%) 59.3 64.8 63.8 0.59

Note. * A p-value of greater than 0.05 indicates that there were no statistically significant differences between the comparison and KOMPAK groups. Data from Desa (Book 4a) from 43 village officials (one per village) in 43 Desa (8 comparison, 35 intervention). Data from HH (Book 6) from 1,038 households (192 comparison, 846 intervention). There was a total of 4,192 household members (805 comparison, 3,387 intervention).+Includes data from pa605A-pa605D)

For example, in comparison households, the 0 to 17 birth certificate rate (can show) was 38.4% compared to a rate of 40.2% in KOMPAK households. It is noteworthy that overall rate of birth certificate coverage (can show, ages 0 to 17) in Indonesia in 2016 was 66.3% (Susenas, March 2016). Other key findings included: nearly 28% of villages did not have an SID system, less than 60% of villages had any regulation related to basic services and 30% of household respondents attended a village planning meeting.


Table 6 provides selected findings from the subdistricts, health centers and schools. As illustrated, there were few statistically significant differences between groups at the baseline. Among the notable findings were relatively low rates of performance-based incentives and puskesmas accreditation.

Table 6. Equivalence of the Comparison and Intervention Group on Selected Attributes

Subdistrict Characteristics: (Book 2a) Comparison KOMPAK Overall p-value*

Respondent is the Head of Subdistrict (ir2a02) (%) 100 33.0 50.0 0.02

Respondent is Female (ir2a05) (%) 0 33.0 25.0 0.18

Size of subdistrict in Km2 (ik2a01) (mean) 223.2 124.5 149.2 0.11

Population of subdistrict (id4a02) (mean) 64,920.5 137,398.2 119,278.8 0.63

Number of Civil Servants (mean) 19.3 23.8 22.6 0.27

There is NO subdistrict Information System to integrate with:

Village (sia01a) (%) 75.0 75.0 75.0 1.00

Health center (sia01b) (%) 75.0 100.0 93.8 0.07

UPTD Pendidikan (sia01c) (%) 75.0 100.0 93.8 0.074

UPTD Capil (sia01d) (%) 75.0 91.7 87.5 0.38

Subdistrict Budget in 2016, IDR--million (ds4a02) (mean) 627.4 1,274.1 1,112.5 0.26

District provides performance-based incentives (mi2a01) %

50.0 25.0 31.2 0.35

Knows the Minimum Service Standards (MSS) for health, education and legal identity (sp2a01) (%)

50.0 58.3 56.3 0.77

Health Center Characteristics: (Book 2d)

Respondent is the Head of Health Center (ir2d02) (%) 75.0 83.3 81.3 0.71

Respondent is Female (ir2d05) (%) 50.0 25.0 31.2 0.35

Puskemas is inpatient (kr2d02) (%) 50.0 83.3 75.0 0.18

Puskemas is accredited (kr2d02a) (%) 25.0 8.3 12.5 0.38

Number of General Practitioners (kr2d10a) (mean) 1.5 2.5 2.3 0.17

Number of Midwifes (kr2d10d) (mean) 27.8 30.7 29.9 0.83

Number of Nurses (kr2d10e) (mean) 18.5 23.6 22.3 0.44

Number of villages served (kr2d03) (mean) 10.5 11.3 11.1 0.88

Budget received in 2016, IDR--million (pg2d01) (mean) 1,412.1 2,106.2 1,932.6 0.36

Local health authority provides performance-based incentives for:

Health center (mi2d01a) (%) 0.0 25.0 18.8 0.27

Healthcare Workers (mi2d01b) (%) 50.0 33.3 37.5 0.55

School Characteristics: (Book 3a)

Respondent is the Principal (ir3a06) (%) 91.7 83.0 84.7 0.46

Respondent is Female (ir3a02) (%) 0.0 25.5 20.3 0.05


Subdistrict Characteristics: (Book 2a) Comparison KOMPAK Overall p-value*

Public Elementary (SD) School (%) 66.7 74.5 72.9 0.59

School is accessible by cell/mobile phone (%) 66.7 57.4 59.3 0.56

Local education authority provides performance-based incentives for:

School (mi3a01a) (%) 50.0 31.9 35.6 0.24

Teachers (mi3a01b) (%) 58.3 34.0 39.0 0.12

Amount of School Operational Assistance (BOS) fund received in 2016, IDR—million (mean)

224.4 186.8 194.5 0.55

Note * A p-value of greater than 0.05 indicates that there were no statistically significant differences between the comparison and KOMPAK groups. Data from Subdistrict (Book 2a) from 16 officials (4 comparison, 12 intervention). Data from Health centers (Book 2d) from 16 Health centers (4 comparison, 12 intervention). Data from Schools (Book 3a) from 59 schools (12 comparison, 47 intervention).


Annex 3. Framework with Project Outcomes and Indicators

GOALPOOR AND VULNERABLE INDONESIANS BENEFIT FROM IMPROVED DELIVERY OF BASIC SERVICES AND GREATER ECONOMIC

OPPORTUNITIES

EOFO 1: LOCAL GOVERNMENT AND SERVICE UNITS BETTER ADDRESS THE NEEDS OF SERVICE USERS

INTERMEDIATE OUTCOME 1 : Fiscal transfer arrangements for basic

service delivery improved

INTERMEDIATE OUTCOME 2 : Local government (LG)1 and service

units (SU) have strengthened systems, processes, and procedures

INTERMEDIATE OUTCOME 3 : Local government and service units

utilise evidence and understanding of local issues to improve services.

PROJECT 1: Strengthening Intergovernmental Fiscal Transfer Policies for Basic Services.

PROJECT 2:Improving Resource Management Capacities of Local Governments and Service Units for Basic Services.

PROJECT 3: Improving Delivery Mechanisms and Innovations for Basic Services.

P1 Outcome 1:MoF national-level fiscal transfer policy is more aligned to basic frontline service delivery and implementation of theVillage Law in diverse settings.K4; PAF 6, 12, 15, 19

P2 Outcome 1:MoF and DPKAD have improved knowledge and skills related to PFM to better support basic frontline services and implementation of Village Law.K6a; PAF 6, 9

P3 Outcome 1:Office of the Camat and relevant sectoral agencies have increased access to and skills for using data and information for planning, budgeting, or solving problems and barriers to the implementation of basic services.K 6a, 6b, 7; PAF 9,13

P1 Outcome 2:Increased district, subdistrict and village government staff skills and knowledge related to fiscal transfer arrangements and funds management.K3a, 5; PAF 9, 12, 13

P2 Outcome 2:District Civil Service Office (Badan Kepegawaian Daerah, BKD) and District Education and Health Offices (Dinas Kesehatan and Dinas Pendidikan) are ready to implement performance-based management for Office of Camat and frontline service staff.K 6a, 6b; PAF 9, 12, 13

P3 Outcome 2:Relevant GoI systems, policy, and strategy encourage and support innovative, propoor, participatory, inclusivefrontline service delivery and village development.K0; PAF 12, 15, 19

P1 Outcome 3:MoF and District Financial and Asset Management Office (Dinas Pengelolaan Keuangan Aset Daerah, DPKAD) are using improved financial management systems and processes to better support basic frontline services and implementation of Village Law.K5, 6a,6b; PAF 6, 12, 13

P2 Outcome 3:Relevant new or revised regulations (related to coordination and HRM at kecamatan and frontline services) reflects KOMPAK input from perspective of frontline and kecamatan staff.K 6a, 6b; PAF 9, 12, 13

P4 Outcome 2:Bappeda, DPKAD, and Office of Camat using the integrated Pro-Poor Planning, Budgeting and Monitoring (P3BM) tools, and SIMPADU for reference, planning, and budgeting.K 6a, 6b, 7; PAF 9,13, 17

P2 Outcome 5:Improved multistakeholder coordination for implementation of basic services in accordance with MSS.K 6a, 6b; PAF 9, 12, 13


PROJECT 4: LANDASAN Phase 2

P4 Outcome 1:Annual Kabupaten education and health plans and budgets adhere to mandatory budget allocations for basic services in health and education and are developed in accordance with established MSS.K 2, 3a, 3b, 3c, 4; PAF 6, 12

P4 Outcome 2:Selected frontline service units are increasingly able to access the training and mentoring support they need from local providers.K 6a; PAF 13

P4 Outcome 6: Distrik utilise evidence and understanding of local issues to improve services.K7; PAF 12, 13

P4 Outcome 3: Selected frontline service units are implementing improved procedures that increase their compliance withestablished MSS and agreed performance indicators.K 6a; PAF 13

P4 Outcome 4: Men and women in communities are increasingly engaged in local service delivery through health and school committees.PAF 16

P4 Outcome 5:Improved services and support system for HIV and AIDS prevention and care.PAF 13

EOFO 2: THE POOR AND VULNERABLE BENEFIT FROM IMPROVED VILLAGE GOVERNANCE

INTERMEDIATE OUTCOME 4 : Village governments are more

responsive and accountable to the identified needs of their communities,

particularly those of the poor and vulnerable.

INTERMEDIATE OUTCOME 5 : Village institutions and other actors

(e.g. private sector, CSOs) are effectively engaging with village government and service units to address needs of the

poor and marginalised.

INTERMEDIATE OUTCOME 6 : Communities are increasingly advocating their priorities in relation to the village

development, including access to frontline services.

PROJECT 4: LANDASAN Phase 2

PROJECT 6:Strengthening Capacities of Village Institutions and Stakeholders towards Pro-poor and Inclusive Village Development.

PROJECT 7:Increasing Representation of Communities in Village Institutions and Development Processes.

P4 Outcome 7: Improved collection, management, and analysis of gender disaggregated data for development purposesby village apparatus and cadre.K 8,9

P6 Outcome 1:Increased engagement and oversight of BPD and other community institutions for transparent, accountable, and pro-poor development.K 8,9.10,11a,12; PAF 16

P7 Outcome 1:Establishment and improvement of social accountability mechanisms between community, service providers, and local government.K 8,9,12; PAF 16P7 Outcome 2:Women and vulnerable groups have greater involvement in decisionmaking and village development.K 8, 12, 13a, 13b, 14; PAF 16

P4 Outcome 8: Increased evidence of village contributions to gender-sensitive local service delivery in village plans and budgets.K 8,9, 11a, 11b; PAF 16

P4 Outcome 9: Village apparatus is increasingly applying accountable andtransparent procedures for implementing village plans and budgets.K 8,9.10,11a,12


PROJECT 5:Enhancing Village Government Capacities for Basic Services and Economic Opportunities.

P5 Outcome 1:GoI – specifically MoHA, MoV, and Coordinating Ministry for Human Development and Cultural Affairs (CMHDCA) – has improved the strategic and regulatory framework tosupport implementation of the Village Law/District governments have improved policy to support implementation of the Village Law.K0, 15, 19; PAF 15, 19

P5 Outcome 2:Improved use of resources (e.g. Village Fund) by the community to address gaps in access to and quality of basic services).K 8,9,11a,11b; PAF 16

P5 Outcome 3:Improved collection, management, and analysis of gender disaggregated data for development purposes by village governments.K 8,9,12; PAF17

EOFO 3: THE POOR AND VULNERABLE BENEFIT FROM INCREASED OPPORTUNITIES FOR OFF-FARM EMPLOYMENT AND ECONOMIC DEVELOPMENT

INTERMEDIATE OUTCOME 7 : The enabling environment increasingly supports off-farm employment opportunities.

PROJECT 8: Strengthening access of communities and microenterprises to financial services and markets.

P8 Outcome 1:OJK has disseminated good quality tools and are supporting financial institutions to improve financial literacy and inclusion for specific target groups. Financial service institutions have increased their outreach to rural communities and people with disabilities (2 provinces, 4 districts).K 18; PAF 15, 19

P8 Outcome 2:Policy advice/prototype designs available for MoV and Bappenas on appropriate models for linking rural livelihoods to markets. An increasing number of BUMDesa in KOMPAK areas are using the tools and networks developed for BUMDesa implementation.K18, K19a, 19b; PAF 15 19

PROJECT 9: Innovations for Integrated and Responsive Vocational Education and Training Centres.

P9 Outcome 1:Appropriate model(s) for industry-led technical and vocational training designed and tested, with specific attention to increasing women’s employment opportunities.K 18


Annex 4. List of KOMPAK Knowledge Products and Publications

Title Year Notes

Research Reports

Back to What Counts: Birth and Death in Indonesia (A Study to Institutionalize Civil Registration and Vital Statistics in Basic Services)

2016 http://kompak.or.id/2016/07/28/back-to-what-counts-birth-and-death-in-indonesia-a-study-to- institutionalize-civil-registration-and-vital-statistics-in-basic-services/.

Ringkasan Eksekutif: Hasil Monitoring Peningkatan Kesejahteraan Keluarga melalui Pemberdayaan Masyarakat (PKKPM)

2016

Kajian Awal Pelaksanaan Program e-Warong Kube-PKH

2017 http://kompak.or.id/en/publication/laporan-penelitian/laporan-penelitian-kajian-awal-pelaksanaan-program-e-warong-kube-pkh

Improving Front-Line Services In Indonesia; Strengthening The Role Of The Kecamatan And Service Units In The Kecamatan

2017 http://kompak.or.id/en/publication/laporan-penelitian/meningkatkan-pelayanan-dasar-lini-depan-menggagas-penguatan-peran-kecamatan-dan-unit-layanan-di-kecamatan

Commissioned Report

Reality Check Approach Report: Local Perspectives and Experiences of the Village Law in Indonesia

2016 http://kompak.or.id/id/publication/laporan-penelitian/laporan-reality-check-approach-pendekatan-periksa-kenyataan-perspektif-lokal-dan-pengalaman-pengalaman-uu-desa-di-indonesia

Briefs

Legal Identity, CRVS, and Basic Services Policy Brief Series (5)

2016 http://kompak.or.id/id/publication/laporan-penelitian/seri-catatan-kebijakan-identitas-hukum-crvs-dan-layanan-dasar

Reality Check Approach - Early Implementation of the Village Law as Perceived by Village Officials and Local Communities

2016 http://kompak.or.id/id/publication/laporan-penelitian/ringkasan-penelitian-reality-check-approach-pendekatan-periksa-kenyataan-pelaksanaan-awal-uu-desa-sebagaimana-diterima-oleh-pejabat-desa-dan-masyaraka

Perbaikan Dalam Mengelola Dana Desa: ‘Pelaksanaan Pengelolaan Sarana Prasarana Desa’

2016 http://kompak.or.id/2016/12/16/policy-brief- sarana-prasarana-desa/

Village Fund and Poverty Reduction 2017 http://kompak.or.id/en/publication/ringkasan/analisis-kebijakan-dana-desa-dan-penanggulangan-kemiskinan

District Fiscal Capacity Calculation to Meet the Minimum Amount of Special Allocation Fund (DAK)

2017 http://kompak.or.id/en/publication/ringkasan/catatan-kebijakan-perhitungan-kapasitas-fiskal-kabupatenkota-untuk-memenuhi-jumlah-minimum-alokasi-dana-desa


Title Year Notes

Perhitungan Kapasitas Fiskal Kabupaten/Kota untuk Memenuhi Jumlah Minimum Alokasi Dana Desa

2017 http://kompak.or.id/2017/02/10/policy-brief-add/

Policy Brief: Strengthening Kecamatan in Improving Access and Quality of Basic Services

2017 http://kompak.or.id/en/publication/ringkasan/catatan-kebijakan-memperkuat-kecamatan-dalam-meningkatkan-akses-dan-kualitas-pelayanan-dasar

Working Paper Series

(1) A Framework to Seek an Integrated Village Information System

2017 http://kompak.or.id/en/publication/uncategories/kerangka-kerja-untuk-mengupayakan-satu-sistem-informasi-desa-yang-terintegrasi

(2) Special Allocation Fund (DAK) 2017

Guidelines

Strategy for Expansion and Improvements in Basic Service Delivery for the Poor and Vulnerable - The Frontline Strategy

2017 http://kompak.or.id/en/publication/ringkasan/strategi-peningkatan-dan-perluasan-pelayanan-dasar-bagi-masyarakat-miskin-dan-rentan-strategi-lini-depan

Guidelines of Local Regulations/Head of Region Regulations Formulation for Implementation of Law Number 6 of 2014 on Village

2017 http://kompak.or.id/en/publication/ringkasan/pedoman-penyusunan-peraturan-daerahperaturan-kepala-daerah-untuk-pelaksanaan-undang-undang-nomor-6-tahun-2014-tentang-desa

KOMPAK Gender Equality and Social Inclusion Strategy 2017-2018

2017 http://kompak.or.id/en/publication/ringkasan/strategi-kesetaraan-gender-dan-inklusi-sosial-kompak-2017-2018

Buku Bantu of Village Development Management (Accordance to Village Law)

2016 http://kompak.or.id/en/publication/laporan-penelitian/buku-bantu-pengelolaan-pembangunan-desa-menurut-uu-desa

Technical Book: Facilities and Infrastructure in the Rural

2016 http://kompak.or.id/en/publication/laporan-penelitian/buku-teknis-sarana-dan-prasarana-desa

Most Significant Change Stories

Peningkatan Kesejahteraan Keluarga melaluiPemberdayaan Masyarakat (PKKPM) (10 Stories)

2016 http://kompak.or.id/2016/10/05/msc-stories/

Newsletter

KOMPAK: Newsletter 1st Edition 2016 http://kompak.or.id/2016/09/07/berita-kompak-newsletter-1st-edition- september-2016/

KOMPAK: Newsletter 2nd Edition 2017 http://kompak.or.id/2017/02/24/berita-kompak-newsletter-2nd-edition-january-2017/

KOMPAK: Newsletter 3rd Edition 2017 http://kompak.or.id/id/resources/newsletter


Title Year Notes

Work Plan

KOMPAK: Work Plan 2017-18 2016 http://kompak.or.id/id/publication/ringkasan/rencana-kerja-kompak-2017-2018

Video

Animated Videos on Village Development Available

2016 http://kompak.or.id/en/publication/laporan-penelitian/video-animasi-tentang-pembangunan-desa-telah-tersedia

Video Infographic: Cross Sector Harmonization on Basic Services in Sub-Districts

2016 http://kompak.or.id/2017/01/25/video-cross- sector/

Infographic/Brochure

Infographic Leaflets on Village Development 2016 http://kompak.or.id/en/publication/laporan-penelitian/brosur-infografis-tentang-pembangunan-desa

KOMPAK

Jalan Diponegoro No. 72 Jakarta Indonesia, 10320

T +62 21 8067 5000

F +62 21 3190 3090

E [email protected]

www.kompak.or.id

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