Document of

The World Bank

FOR OFFICIAL USE ONLY 1 L

Report No. 2274d-IND

INDONESIA

STAFF APPRAISAL REPORT FOR

SECOND AGRICULTURAL TRAINING PROJECT

April 9, 1979

Projects DepartmentEast Asia and Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS /1

US$ 1 Rp 625

Rp 1 - US$0.0016Rp I million = US$1,600

Rp 1 billion = US$1,600,000

GLOSSARY

AARD - Agency for Agricultural Research and DevelopmentAAETE - Agency for Agricultural Education, Training and

ExtensionBAPPENAS - National Planning AgencyBIMAS - Mass Guidance - a farm input-credit package programGMU - Gaja Mada UniversityGT - Gross tonINPRES - Presidential Instruction - a rural public works

programIPB - Agricultural University, BogorMOA - Ministry of AgricultureNATI - National Agricultural Training InstitutePIU - Project Implementation UnitRepelita - National Five-Year Development Plan (Repelita I,

1969-74; Repelita II, 1974-79; Repelita III,1979-84)

Sarjana - Five-year degree programSarjana Muda - Three-year degree programSPP - Agricultural Development School (senior secondary

level)

FISCAL YEAR

April 1 - March 31

SCHOOL YEAR

July 1 - June 30

/1 The Rupiah was devalued on November 15, 1978 from Rp 415 to Rp 625 to theUS dollar. All figures in this report are based on the new exchange rate(i.e., US$1 = Rp 625).

FOR OFFICIAL USE ONLY

INDONESIA

SECOND AGRICULTURAL TRAINING PROJECT

TABLE OF CONTENTS

Page No.

BASIC DATA

1. AGRICULTURAL DEVELOPMENT STRATEGY AND IMPLICATIONSFOR EDUCATION AND TRAINING . . . . . . . . . . . . . . . . . . . I

Development Pattern and Strategy . . . . . . . . . . . . . . . 1Implications for Education and Training . . . . . . . . . . . 5

2. AGRICULTURAL EDUCATION AND TRAINING . . . . . . . . . . . . . . 8

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Middle-level Agricultural Education . . . . . . . . . . . . . 10Problems. . . ........... 14Plans and Strategy in Middle-level Education and Training . . 15

3. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Objectives and Scope . . . . . . . . . . . . . . . . . . . . . 17Agricultural Development Schools . . . . . . . . . . . . . . . 19In-service Training Centers . . . . . . . . . . . . . . . . . 22Technical Assistance .................... 25Project Management and Preinvestment Studies . . . . . . . . . 27

4. PROJECT COST, FINANCING, IMPLEMENTATION AND DISBURSEMENTS . . . 28

Cost of the Project . . . . . ... . . . . . . . . . . . . . . 28Project Financing . . . . . . . . . . . . . . . . . . . . . . 32Implementation . . . . . . . . . . . . . . . . . . . . . 32Disbursements .35Monitoring and Evaluation . . . . . . . . . . . . . . . . . . 36

5. BENEFITS AND RISKS . . . ... 37

Benefits . . . . . . . . . . . . . . . . . . . . . . . 37Risks .38

6. AGREEMENTS REACHED. . . . . . . . . . . . . ... . . . . . . . . 38

This report is based on the findings of a mission to Indonesia during July/August 1978 composed of Messrs. S.R. Santos (agricultural educator andmission leader), W.L. Taylor (economist, Unesco) and L. Concepcion (architect,consultant).

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.

List of Tables in Text

1.1 Average Annual Demand for Middle-level AgriculturalManpower, 1979-88 .... . . . . . . . . . . . . . . . . . 6

1.2 Average Annual Supply of Middle-level AgriculturalMlanpower, 1979-83 .... . . . . . . . . . . . . . . . . . 7

2.1 Agricultural Training Institutions (1945 and 1970) ..... . 82.2 Number, Enrollment and Output of Agricultural Development

Schools by Types, 1977-78 ... . . . . . . . . . . . . . . 112.3 Number of Places and Output of In-service Training Centers . 133.1 Improvement and Expansion of Agricultural Development

Schools in Indonesia ... . . . . . . . . . . . . . . . . . 203.2 Full-time Teacher Requirements of Project Agricultural

Development Schools ... . . . . . . . . . . . . . . . . . 213.3 Improvement and Expansion of In-service Training Centers

in Indonesia .... . . . . . . . . . . . . . . . . . . . . 233.4 Technical Assistance . . . . . . . . . . . . . . . . . . . . . 254.1 Summary of Costs by Project Item . . . . . . . . . . . . . . . 284.2 Summary of Project Costs by Category of Expenditure .294.3 Areas/Costs per Student Place . . . . . . . . . . . . . . . . 304.4 Annual Price Increases ... . . . . . . . . . . . . . . . . . 314.5 Schedule of Disbursements ... . . . . . . . . . . . . . . . 36

List of Charts in Text

Chart 4.1: Organizational Structure of the ProjectImplementation Unit ... . . . . . . . . . . . . . . 33

Annexes

1. Comparative Education Indicators2. Project Institutions3. Implementation Schedule4. Selected Documents and Data Available in the Project File

Map

Location of Project Institutions

INDONESIA

BASIC DATA /a

Enrollment (1977)

Amounts: General Education (Government Schools)

Primary (Grades 1-6) 17.3 millionSecondary (Grades 7-12) 3.4 millionTertiary (Grades 13-17) 0.3 million

Agricultural Education (Government and Private)

Senior Secondary (Grades 10-12) 12.0 thousandTertiary (Grades 13-17) 14.3 thousand

Ratios: /b Primary 78%Secondary 18%Tertiary 3%

Finance

GNP/capita (1977) US$300 p.a.Public education expenditure as percentageof GNP (1976) 3%

Percentage of expenditure devoted to education(1976) 11%

Actual expenditure of AAETE for agriculturaltraining (1977-78, US$ million)

Routine budget 2.5Development budget 8.0

Total 10.5

Total as a percentage of MOA'stotal actual expenditure 16%

/a Comparative data are shown in Annex 1.

/b Gross enrollment ratios, including overage students, based on enrollmentin government schools.

1. AGRICULTURAL DEVELOPMENT STRATEGY ANDIMPLICATIONS FOR EDUCATION AND TRAINING

Development Pattern and Strategy

1.01 The Agricultural Sector. The agricultural sector in Indonesiaaccounts for about 36% of GDP, 25% of total exports, 80% of non-oil exports,and it employs about 60% of the total work force. The sector has a dualisticstructure, consisting of some 14.4 million smallholder farms which cultivateabout 14.2 million ha, and about 1,800 large estates which occupy about 2.2 mil-lion ha. Production in all subsistence and cash crops, except oil palm andtea, is dominated by smallholders. About two-thirds of the farm familieslive on the "inner islands" of Java, Madura, and Bali, where 65% of Indonesia'spopulation is concentrated. However, together these islands account for lessthan 7% of the country's total land area. Consequently, about 70% of farmerscultivate less than one ha of land.

1.02 The primary long-standing objectives for development of the sectorhave been to: (a) intensify and accelerate production of food crops, primarilyrice; (b) create productive employment; (c) raise the incomes of the ruralpoor; and (d) improve net foreign exchange earnings by increasing crop exportsand reducing rice imports. As a necessary first step, investments in agricul-ture during the first five-year development plan (Repelita I, 1969/70-1973/74)were directed largely towards rehabilitation of neglected irrigation works andother infrastructure, and of rundown public sector tree crop estates. The vastmajority of attention under the First Plan went to the inner islands. TheSecond Plan (Repelita II, 1974/75-1978/79), however, emphasized wider distribu-tion of development efforts over different regions. With this in mind, effortsunder Repelita II have centered on: (a) a pricing policy for farm productsdesigned to give incentives to the rural producer; (b) heavy investment in newroads, irrigation, marketing facilities, and other infrastructure; (c) streng-thening production oriented research; and (d) promoting the adoption ofimproved production techniques and inputs through rural credit schemes anddevelopment of an effective extension service. These policies are expected tocontinue to receive heavy emphasis during Repelita III (1979/80-1983/84),commencing in April 1979, with the addition of: (a) formulation of a nationalfood strategy which would further promote rice while increasing emphasis onthe production and consumption of nonrice food crops; and (b) revival andpromotion of traditional agricultural exports. Also under the Third Plan, theGovernment plans to vastly expand its continuing program of transmigration,which has long been an integral part of the strategy to increase agriculturalproduction. This program seeks to move many landless and near-landless farmfamilies from the densely populated island of Java to the underutilized, thoughless fertile, areas in the other islands and help establish them on their ownholdings.

1.03 As part of the Government's policy to improve research and extension,two new agencies, the Agency for Agricultural Research and Development (AARD)and the Agency for Agricultural Education, Training and Extension (AAETE) wereestablished within the Ministry of Agriculture in 1974. These agencies areresponsible for administration, supervision, and planning of programs intheir respective fields. Support for research has come from various foreign

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donors, including the World Bank under the ongoing Agricultural Research andExtension Project (Loan 1179-IND, 1975). Under this project, the linkagesbetween research and extension are being strengthened through the establishmentof one national, and nine regional, agricultural information centers. Even-tually, the Government hopes to establish such centers in each of the 26provinces. A second research project to continue strengthening and developingagricultural research networks in the country is being considered.These projects require adequately trained manpower. In extension, separateservices are run by each of five Directorates General: Food Crops, EstateCrops, Animal Husbandry, Fisheries, and Forestry. The current size andprojected growth of these extension services over the next decade are describedbelow (para. 1.10). Staff from the Directorates General assigned to theprovinces remain responsible to their respective Directorates for technicalmatters, but are administratively responsible to the provincial Governors. Aspart of the Government's efforts to improve its extension services, the Govern-ment is carrying out a Bank-assisted National Food Crops Extension Project(Loan 1267-IND, 1976). The project is introducing an extension methodologywhich emphasizes continuous training and farm visits and establishing 529rural extension centers (RECs). Each REC would become the basic module fromwhich the extension service in the area the REC serves would be built up. Aproposed second food crop extension project presently under preparation wouldextend improvements to the extension service to other provinces. Up to 1985,the Directorate General of Food Crops estimates that about 6,000 trainedmiddle level extension workers would be needed to implement its extensionprogram in addition to about 6,000 trained middle level extension workerspresently serving. The Government also has recently started a programfor farm women, to promote rural home improvement activities. There are nowabout 300 female extension agents undertaking the program, and an additional700 will be added during the Third Plan. Another instrument for ruraldevelopment which the Government has pursued beginning under the Second Plan isdevelopment of a system of farmers' cooperatives, particularly for marketingof crops. Preliminary plans for Repelita III are to increase the number ofcooperatives from the current 3,800 to 5,500 by 1983. Due to a serious lackof suitably trained staff, however, many of the present cooperatives areeither inefficient or inactive and, therefore, they tend not to be used by thefarmers. Additional staffing would also be needed in the implementation ofthe expanded transmigration program. As many as 86,000 families have beenresettled from Java to other islands during Repelita II. Under Repelita III,however, the intention is to resettle 500,000 families and provide them withnecessary physical and social infrastructure (education, health services) aswell as agricultural supporting services. These plans include the provisionof one multi-purpose field extension officer for every group of 500 families.

1.04 Crops. There are six major food crops in Indonesia - rice, corn,cassava, sweet potatoes, peanuts, and soybeans - which together accountfor about 80% of total food intake. Domestic production has not beensufficient to meet the aggregate demand for food, and Indonesia has becomea large importer of food grains (2.6 million tons of rice and 1.0 milliontons of wheat in 1977/78). Consequently, Government food crop programshave been aimed at increasing production, through increasing both yields(particularly in Java) and area under cultivation (in the other islands). Asthe major food crop, rice has received the bulk of the attention of the

programs during both Repelita I and II, though the secondary crops have gainedsome emphasis in recent years. A major policy tool to stimulate rice produc-tion has been the periodic adjustment of rice and fertilizer prices. The mainvehicle for increasing production, however, has been the BIMAS ("mass-guidance")program, commencing with rice in 1965 and extending, to a limited extent, tothe other secondary food crops between 1972-75. The bulk of extension effortsin Indonesia have been directed to this program through which farmers areprovided with extension advice and credit for fertilizer, improved seed andother inputs. Under BIMAS, rice farmers showed increased yields of 62% overfarmers not reached by the program. This contributed to about a 4.5% p.a.increase in rice production during Repelita I. In recent years, however,growth in rice production has slowed to between 2-3% p.a., and production ofsecondary crops has stagnated, largely due to unfavorable weather, damage bypests and disease, denial of credit to farmers who defaulted on BIMAS loans,and limitations within the research and extension programs. The coverage ofthe BIMAS program has been constrained to a large extent by the shortage oftrained extension personnel; 34% and 9% of the extension staff of the Director-ates of Food Crops and Estate Crops, respectively, have less than a secondaryschool education.

1.05 Indonesia is among the world's largest producers and exporters ofrubber, coconuts, palm oil, and spices and grows large amounts of coffee andtea as well. Although their relative importance as export earners hasdeclined following the oil and timber booms of the early 1970s, rubber,coffee, oil palm and tea still accounted for almost 20% of total exports and44% of non-oil exports in 1977/78. Between 10-20% of the Indonesian laborforce earn the larger part of their living in the tree crop sector androughly two-thirds of production of rubber, the major tree crop, is in thehands of smallholders. Serious problems have arisen in smallholder produc-tion, particularly in rubber, coconut and pepper, due to poor cultivationmethods. Smallholder rubber production is stagnating and shows signs ofslowly declining. A critical bottleneck to growth in production is theshortage of trained personnel, reflected in the weakness of research andextension.

1.06 Fisheries. The fisheries sector in Indonesia provides the chiefsource of animal protein to the nation's diet and accounts for about 4.5% oftotal agricultural output. In 1977, 1.1 million tons of saltwater fish and0.4 million tons of freshwater fish were produced, 57,150 tons of which wereexported. The sector has four main branches: off-shore, coastal (artisanal),fish cultivation (chiefly fishponds) and fresh water capture (rivers andlakes). Together, off-shore and coastal fisheries account for 72% of totaloutput. Off-shore fisheries is dominated by large commercial enterprises,including many foreign firms and joint ventures. Coastal fishery is com-prised of some 850,000 small fishermen, mainly using small boats and tradi-tional gear. About 500,000 people are engaged in fish cultivation whichconsists of about 180,000 ha of brackish water ponds (6% of output), 40,000ha of freshwater ponds (4% of output), and 80,000 ha of paddy fields (2% ofoutput). There is substantial scope for improvement in catch; total sustain-able annual yield of Indonesian waters is estimated at about 6.0 million tonscompared to 1.5 million at present. The Government's long-term objective forthe sector is to increase annual fish production/consumption to 30 kg per

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capita, from the present level of 11 kg per capita. Indications are that thetargets for fisheries in the Third Plan, now under formulation, will be toincrease total output by 5.8% p.a. and exports by 13% p.a. Constraints onincreased production include the use of traditional catching techniques,weak marketing and handling facilities, and the high cost of inter-islandshipping and port operations. Poor cultivation techniques and inadequatesupply of fry contribute to low fishpond yields. Government programs toalleviate these constraints include: (a) improvement in fish marketingsystems; (b) infrastructure construction at fishing harbors; and (c) creditand extension schemes for brackish and fresh water fishponds, boat motorizationand small-scale ice plants. A large part of credit for fisheries is beingprovided through the Bank-financed Fisheries Credit Project (Credit 480-IND)and the Rural Credit Project (Credit 827-IND). The marine and inland fisheriesextension staffs of the Directorate General of Fisheries have been considerablyhampered in their efforts by lack of adequate training; almost half of thetotal staff of 3,510 have less than a secondary education.

1.07 Forestry. During the years 1971-76, exports of timber averaged 80%of the total annual harvest in Indonesia, and about 40% of total agriculturalexports. While production of teak by volume has declined (from 770,000 cu min 1971 to 480,000 cu m in 1976), production of other hardwoods has grownconsiderably (from 12.9 million cu m in 1971 to 20.8 million cu m in 1976).This growth has largely been due to foreign development of the timber industryin the outer islands, which is part of the Government's program to initiateindustrial development and mining outside of Java and Bali. At the same time,the Government has recently expanded a program of reforestation and conservationin Java. Three million ha (22% of Java's area) have been classified as forestreserves. In 1976/77, the Government allocated Rp 16 billion to an INPRES(public works) reforestation program, using unskilled workers on a part-time,temporary basis. This program, however, was unsuccessful. One of the majorconstraints in both increasing production of timber and reforestation/conserva-tion continues to be the lack of trained technical personnel, particularly atthe middle level.

1.08 Livestock. Meat and dairy products in Indonesia account for about7.0% of total agricultural production. Except for a few large ranches, almostall livestock are owned by smallholders and integrated into their farmingactivities. Until recently, Government development programs in the sectorwere directed primarily towards increased beef production for local consumptionor export. This was the focus of the first large-scale credit program in thesector, the Slaughter Animal Development Program (1975), and of the WorldBank-assisted Beef Cattle Development Project (Credit 355-IND, 1973). However,a serious shortage of draft animals, the main source of farm power, has emergedthroughout the country, particularly in newly settled areas. Consequently, theemphasis of programs, including the Bank-assisted project, has been redirectedtowards the breeding of draft animals. A national credit scheme has beendeveloped with Bank Rakjat Indonesia to assist smallholders in purchasing 2-5cows or fattening steers, construction materials for sheds, veterinary suppliesand supplementary feed. Extension programs are underway throughout the countryto provide farmers' animals with disease control and artificial inseminationthrough the extension service. The extension effort is very limited, however,

being constrained, to a large extent, by the lack of qualified livestockproduction and animal health technicians. Of the Directorate of AnimalHusbandry's middle level technical staff of 1,290, 70% have not completedsecondary school.

Implications for Education and Training

1.09 One of the main constraints to the success of the Government'sdevelopment programs in the agricultural sector is the shortage of qualityagricultural manpower, particularly at the middle level. Efforts have beenmade to help remove this constraint under the recently completed SecondEducation Project of 1972 (Credit 288-IND, para. 2.03). The country'srequirements, however, are large and additional assistance is needed.

1.10 The effective demand of the major Government agricultural agenciesfor trained middle level agricultural manpower over the ten-year period,1979-88, and their existing number of staff, are shown in Table 1.1 below.These projections are based on estimates made by the agencies of the need foradditional staff for replacements and expansion during only the five years ofthe Third Plan (1979/80-1983/84). However, in view of the high probabilitythat such relatively large numbers of staff could not be absorbed by theagencies over a five year period, their estimates of expansion needs havebeen applied, more realistically, to a ten-year period as shown in Table 1.1.Estimates of replacement needs were adjusted accordingly. In sum, a total ofabout 4,000 middle level agricultural staff will be needed annually, on theaverage, over the ten-year period in order to carry out the Government'sagricultural development programs. The largest average annual requirement,920, will be for the Directorate General of Food Crops, to be involved, forthe most part, in extending the coverage of the BIMAS program. To maintainthe relatively large size of the food crops middle-level technical staff(12,670 at present), about 45% of the staff needed over the ten years will befor replacement of those retiring or resigning. The Directorates General ofForestry (for regreening), Animal Husbandry and Estate Crops will also havelarge annual requirements for technicians to staff their development programs(630, 610 and 560, respectively). Due to the unavailability of data, esti-mates have not been made of the demand for middle-level agricultural manpowerin private industry. Two particular areas of the private sector that can beexpected to generate additional demand for technicians are the forestryharvesting and products industries, and commercial marine fisheries.

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Table 1.1: AVERAGE ANNUAL DEMAND FOR MIDDLE LEVEL AGRICULTURAL MANPOWER,1979-88

Existing Annual requirements Total additionalExisting staff staff Replacement /a Expansion annual requirements

Agency for Research &Development 1,000 40 110 150

Directorates General:Food Crops 12,670 420 500 920Estate Crops 1,035 100 460 560Animal Husbandry 1,290 110 500 610Forestry 2,600 110 240 350Forestry (for

regreening) 2,050 130 500 630Fisheries (marine) 1,630 70 190 260Fisheries (in.land) 1,880 80 200 280Transmigration 105 20 100 120Cooperatives 100 20 100 120

Total 24,360 1,100 2,900 4,000

/a Based on an assumed 3% attrition rate of existing stock and 1% of newappointees.

1.11 The current supply of agricultural technicians over the ten-yearperiod to meet this demand is shown below in Table 1.2. At present, thereare 99 senior secondary agricultural schools, called agricultural developmentschools, producing middle-level manpower. Of these, only 15 are producinggraduates of satisfactory quality, having recently been upgraded throughWorld Bank (14 schools) and FAO (one school) assistance (para. 2.03). Nopreservice training is currently offered for forestry technicians who wouldbe involved in forest and wildlife conservation, forest exploitation andforest products industries. (Staff for the Directorate of Forestry's refores-tation programs are receiving training at the agricultural developmentschools). At present, there is also no training offered for female extensionagents in rural home improvement extension work. Table 1.2 shows shortfallsin supply in all categories of middle-level agricultural manpower.

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Table 1.2: AVERAGE ANNUAL SUPPLY OF MIDDLE-LEVEL AGRICULTURAL MANPOWER,1979-83

Output per annum Average TotalEmphasis of SPP Improved Unimproved annual annual

school school Total demand deficit

Agronomy /a 680 1,730 2,410 2,500 (90)Livestock production 210 - 210 610 (400)Inland fisheries - 40 40 280 (240)Marine fisheries 80 70 150 260 (110)Forestry - - - 350 (350)

Total 970 1.840 2,810 4,000 (1,190)

/a Includes research and development, food crops, estate crops, forestry(for regreening), transmigration, and cooperatives.

1.12 The potential large shortfall of new graduates, if the currentsupply situation continues, is not the full extent of the problem, however.There is also a pressing need for upgrading the quality of the existing staffof the agricultural agencies through in-service training programs. In thepast, the general quality of agricultural graduates at the middle-level hasbeen poor. It is only very recently that programs to improve some of theschools have been completed and a limited number of graduates with satisfactorytraining have been generated. The majority of the agencies' staff, therefore,could benefit greatly from in-service training programs in their fieldsdesigned to raise their qualifications to at least the level of the graduatesof the improved agricultural secondary schools. This is particularly truefor the five Directorates General of MOA which have had to meet their needsby hiring staff with less than a secondary education. Continuing in-servicetraining, in the form of refresher courses, also is needed, however, to keepthe trained agents abreast of technical developments in their fields.

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2. AGRICULTURAL EDUCATION AND TRAINING

Overview

2.01 Prior to independence (1945), Indonesia's agricultural educationand training system consisted of one faculty of agriculture (grades 13-17),which offered higher-level training, and one senior secondary agriculturalschool (grades 10-12), for middle-level training. No significant expansionof these training programs took place until 1960, when the Ministry of Agri-culture (MOA) substantially extended agricultural services to the provinces,thus creating a substantial demand for trained agricultural manpower. Thistriggered a rapid expansion of agricultural institutions in the country. By1970, there were 46 faculties of agriculture and related sciences in 24universities and 96 senior secondary agricultural schools (16 established bythe national government, 51 by provincial governments and 29 by the privatesector), as shown below.

Table 2.1: AGRICULTURAL TRAINING INSTITUTIONS(1945 and 1970)

Institutions 1945 1970(number) (number)

Agricultural Faculties (Grades 13-17)Agriculture 1 20Agricultural Engineering & Products Technology - 2Animal husbandry - 12Veterinary medicine - 2

Animal husbandry & veterinary science - 2Forestry - 4Fisheries - 4

Total 1 46 /a

Senior Secondary Agricultural Schools (Grades 10-12)Agriculture (agronomy) 1 86Animal husbandry - 4

Plantation crops - 3/b

Fisheries - 2

Forestry - 1/c

Total 1 96

/a In 24 universities.

/b Terminated in 1972. Technicians in plantation crops have, since then, beenrecruited from graduates of the schools specializing in agronomy (nowcalled crop production).

/c Converted into a forestry in-service training center in 1972.

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2.02 At the higher level, the growth in the number of agriculture facul-ties was not accompanied by a commensurate growth in resources. The result-ing budgetary constraints were reflected in inadequate teaching facilities,equipment, student hostels and staff housing. In addition, the majority ofteachers worked on a part-time basis and few had adequate training. Conse-quently, these institutions produced poorly trained graduates. Since 1970,the Government has initiated measures to address these problems of higheragricultural education. A Consortium of Agricultural Sciences has been formed,composed of: (a) the agriculture faculties of the two leading universitiesin Indonesia-Institut Pertanian Bogor (IPB) and Gaja Mada University (GMU);and (b) technical experts from foreign agricultural universities who havebeen provided with USAID assistance. The Consortium's main responsibilitiesare to establish training standards, accredit agricultural faculties and actas an advisory body to the Directorate of Higher Education of the Ministry ofEducation, which administers university education in the country. TheGovernment has also designated the faculties of agriculture at IPB and GNU toact as "Leader Faculties" to help improve other faculties of agriculture by:(a) the affiliation of weak agriculture faculties to IPB or GMU; (b) staffexchanges; (c) staff upgrading through summer courses; (d) improvement ofcurriculum and introduction of educational reforms; (e) development ofcollaborative research programs; (f) provision of consultant services; and(g) program evaluation. Six universities are being assisted under theLeader Faculties at present and, within the next five years, the Governmentintends to expand the program to about 14 other universities with USAIDassistance.

2.03 In 1970, lack of sufficient resources was also the rule at themiddle level, resulting in the same deficiencies as at the higher level inquality of training offered by the Senior Secondary Agricultural Schools. Thesecondary agricultural schools under each of the five types (Table 2.1) wereadministered by the corresponding directorate general of the MOA. Lack ofcoordination among the directorates resulted in widely differing standards oftraining. There was also some duplication of effort, particularly among theschools specializing in agronomy and plantation crops. Poor planning resultedin overcrowding in some schools and uneconomically small enrollments inothers. Furthermore, the technical courses offered by the schools wereconfined to their respective disciplines, rendering the graduates ineffectivein working with farmers who generally practice mixed farming.

2.04 Within the context of an integrated program to improve extension,research and training (para. 1.03), the Government has taken steps since 1970to improve middle-level agricultural education and training. Based on thefindings and recommendations of an FAO survey mission (1971) on middle-levelagricultural education and training, the Government developed a two-phasedstrategy for upgrading MOA staff and of agricultural training in Indonesia.The first phase was to concentrate on improving selected national institutionsto meet the country's most urgent middle-level training and manpower needs.The second phase was to improve another group of selected institutions focusingon provincial institutions in the islands outside Java including marine fisheryand forestry (preservice) training which were not included in the first phase.The first phase of the strategy was carried out by the Government with assis-tance under the Second Education Project (Credit 288-IND, 1972). Under this

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project, an institutional framework for coordination and administration ofmiddle-level agricultural education and training was established in 1972 withthe creation of the Agency for Agricultural Education and Training under theMOA./1 In addition, the project upgraded 14 existing senior secondary agri-cultural schools,/2 and introduced curricular improvements in all of theseschools. FAO has also provided assistance through upgrading of one seniorsecondary school in marine fisheries.

2.05 In 1970, in-service training programs for agricultural staff wereconducted separately by each of the different directorates general of the MOAon an ad hoc basis whenever staff training was needed. Training was usuallycarried out in dilapidated buildings or improvised training centers. Thesetraining centers generally had no land for practical training and nearly allof their teachers were on a part-time basis. Altogether, the differentdirectorates general trained about 1,000 agriculture personnel annually.Since then, 23 in-service training centers have been established 16 of whichwere upgraded under Credit 288-IND, and FAO has upgraded 1 marine fisheriesin-service training center. These assisted centers were provided with ade-quate teaching facilities, equipment and enough qualified full-time teachersto satisfactorily carry out their present training programs.

Middle-Level Agricultural Education

2.06 Administration and Management. The Government created the Agencyfor Agricultural Education, Training, and Extension (AAETE) to centralize andrationalize the management of all middle-level agricultural education andtraining programs (para. 2.03). The administration of all schools and in-service training centers of the different directorates general of the MOA havebeen transferred to the Agency. It has been made responsible for: (a)assessment and planning of education and training programs of all middle-level agricultural institutions, and prescribing relevant improvements incurriculum; (b) accreditation of all national, provincial and private agri-cultural development schools; and (c) preparation and administration of finalexaminations to graduating students of all the agricultural developmentschools to determine their eligibility for graduation.

2.07 The Agency has the same hierarchical status in the MOA as thedirectorates general, and consists of four main units: (a) the Secretariat,which controls the training budget and takes charge of administrative ser-vices; (b) the Bureau of Agricultural Education, which is responsible forpreservice training programs; (c) the Bureau of Personnel Training, which isresponsible for in-service training programs; and (d) Bureau of Agricultural

/1 This agency has been renamed the Agency for Agricultural Education,Training and Extension (AAETE) in accordance with Presidential DecreeNo. 45 dated August 26, 1974.

/2 The senior secondary agricultural schools were renamed AgriculturalDevelopment Schools (SPPs) in accordance with Ministerial Decree No. 50dated January 1, 1978.

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Extension, which guides and assists the different extension units of the MOAin planning and carrying out their extension program and in preparing appro-priate extension materials. At the provincial level, the functions of theAgency are carried out through officers in the different provincial departmentsof agriculture who work closely with each of the Agency's three bureaus. TheAgency is assisted in supervision of the provincial and private agriculturaldevelopment schools by the directors of the 14 national agricultural develop-ment schools which were improved under Credit 288-IND (para. 2.04). Since itsinception, the Agency has accomplished a great deal. Better coordinationamong the training programs of the MOA and management of their budgets hasreduced the inefficient allocation of resources among the national agriculturaldevelopment schools (para. 2.03). The quality of preservice and in-servicetraining and their relevance to the manpower needs of the directorates generalof the MOA have been increased through curricular improvements introduced bythe Agency. In addition, standards of training among institutions have becomemore consistent due to the requirements for accreditation which the Agency hasset (e.g., minimum area of school farms and number of full-time teachers,selection criteria for students).

2.08 Preservice Training. Preservice agricultural education in Indonesiais carried out by Agricultural Development Schools (grades 10-12), which arethe principal source of middle-level manpower in agriculture. There are twogeneral types of these schools according to their field of training: agricul-ture, which includes training in crops, animal husbandry and inland fishery;and marine fishery. According to administration, there are three categoriesof schools: national, provincial and private. The number enrolled and outputper annum of the different types of agricultural development schools areshown below.

Table 2.2: NUMBER, ENROLLMENT AND OUTPUT OF AGRICULTURAL DEVELOPMENT SCHOOLS BY TYPES,1977-78

Provincial andNational Schools Private Schools Total

Enroll- Output Enroll- Output Enroll- OutputTypes Number ment p.a. Number ment p.a. Number ment p.a.

Agricultural

Crops 11 2,280 680 82 8,390 1,730 93 10,670 2,410Animal

husbandry 3 720 210 - - - 3 720 210Inland Fishery 1 150 40 - - - 1 150 40

Marine Fishery 2 490 150 - - - 2 490 150

Total 17 3640 1,080 82 8,390 1,730 99 12,030 2,810

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All 97 schools of the agricultural type offer a core curriculum (72% of thetime allocated to teaching) which is designed to provide students with thebroad background needed by middle-level agricultural technicians who work ina mixed farming system. This is particularly true for extension techniciansinvolved in the transmigration and cooperatives programs. Of the core, 65%is allocated to social and natural sciences and 35% to general agriculture.Each of the schools devotes the remaining teaching time (28%) to specializa-tion in either crop production, animal husbandry or inland fisheries, depend-ing upon the predominant agricultural enterprise and the manpower require-ments in the region the school serves. No schools offer specialization inforestry. Overall, the curriculum at each school consists of 34% generaleducation and 66% technical subjects. The proportion of lecture and prac-tical periods is 49% and 51%, respectively. This curriculum was introducedunder Credit 288-IND (para. 2.04), with only minor deviations since then inthe form of the addition of more crop production specialization courses inresponse to manpower needs arising out of the National Food Crops ExtensionProject (para. 1.03). The curriculum of the two marine fisheries schools wasdeveloped under the FAC project (para. 2.04). The curriculum gives adequateemphasis on off-shore commercial fishery. However, since the marine fisheryservice deals substantially with artisanal fishing, the emphasis the cur-riculum gives to coastal fishery may need to be increased.

2.09 The 14 national agricultural schools (crops and animal husbandry)which were upgraded under Credit 288-IND and the one national marine fisher-ies school upgraded by FAO are operating satisfactorily. When upgraded,however, the agricultural schools were provided with hostels to accommodateonly 75% of their students. This is now causing some problems. Theseschools are generally located far from residential areas, where publictransportation is either irregular and costly or unavailable. Those studentswho do not reside on the school campus, consequently often have to walk longdistances daily to and from school. As a result, absences among thesestudents are high, especially during the rainy season. Moreover, thesestudents are not able to take advantage of the school library during off-school hours. In addition to insufficient boarding places, these schoolsalso do not have facilities to train extension workers in rural home improve-ment nor sufficient practical training facilities and equipment for animalhealth technicians needed for implementation of Government developmentprograms (paras. 1.03 and 1.08). The remaining national schools (one inlandfishery and one marine fishery) which have not received external assistancedo not have enough classroom and laboratory space and lack the necessaryteaching equipment. Moreover, the inland fishery school has virtually nofarm land nor fish ponds, and the marine fishery school is located in thecenter of an urban community and has no immediate access to the sea. Thestudents of these schools, therefore, receive limited practical training.The provincial and private schools, in general, operate with substandardphysical facilities, equipment, and materials and have few qualified teachers.Almost all of these schools have insufficient farm land, averaging about 5ha. For lack of these resources, the students receive a minimum of laboratoryand practical field training. The poor quality of training in these schoolsis reflected in their low graduation rates. As shown in the above table, theoutput of the provincial and private schools represent only about 20% of the

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enrollment as compared to 30% in national schools. This implies that agreater percentage of graduating students in provincial and private schoolsfail the national final examinations (para. 2.06) and, therefore, are notallowed to graduate.

2.10 In-Service Training. At present there are 23 permanent in-servicetraining centers which train a total of about 5,650 MOA personnel annually.The agriculture, marine fishery and forestry centers generally conduct twogroups of courses: (a) a remedial program for staff who have not takenpreservice training at the agricultural development schools, in order toupgrade them to the level of the graduates of these schools; and (b) coursesof varying length to keep staff abreast of technological developments in theirfield and to give staff additional specialized training in response to changingemphasis of development programs. This longer in-service training complementsthe shorter recurrent training given to extension staff under the training andvisit system (para. 1.03). The average duration of courses is two months atthe agriculture centers (crop, livestock and inland fishery) and four monthsat the marine fishery center. Due to absence of preservice forestry training,the forestry centers offer a 10-month induction course for new staff, inaddition to refresher courses averaging 2 months each. The national instituteconducts various administration, management and technical courses for MOAadministrative staff and subject matter specialists with an average durationof two months per course, and a three-month course in pedagogy for teachers ofthe national agricultural development schools and training centers, since nopreservice teacher training is offered by the university agricultural facultiessystem. Each of the 23 centers has four to five qualified full-time teachersand is under the administration and management of the AAETE (para. 2.06). Thenumber, capacity, and annual output are shown below (Table 2.3).

Table 2.3: NTMBER OF PLACES AND OUTPUT OF IN-SERVICE TRAINING CENTERS

Types Number Number of places Output p.a

Agriculture 13 710 3,550Marine Fishery 3 140 380Forestry 6 480 960Administration,Management, Teaching/a 1 160 760/b

Total 23 1,490 5,650

/a Called the National Agricultural Training Institute (NATI)./b Sixty are agricultural teachers.

The 17 centers improved under Credit 288-IND (13 agriculture, 2 forestry, andthe NATI), and FAO assistance (1 marine fishery) are operating satisfatorily,except one forestry center which lacks laboratory and workshop facilities.These facilities were not provided because at the time of project formulation(1971) the Government intended to build a forestry laboratory and workshopbeside the project forestry center for the Ministry of Labor and make thesefacilities available to trainees of the center. This plan, however, did not

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materialize. It is now the intention of the Government to provide the centerwith these facilities. At the remaining centers (2 marine fishery and 4forestry), however, practical training is inadequate due to insufficientworkshops and equipment. These centers were not included in the first phaseproject (para. 2.04) since the scope of the project was limited to meetingthe most urgent training needs of the MOA, with the intention that improvementsin forestry and marine fishery training would be pursued at a later date in asecond phase project.

Problems

2.11 Administration and Management. Despite its achievements (para.2.07) the AAETE (the Agency) like any new organization, still has certaindeficiencies. The Agency's current planning activities only focus on theimmediate training needs of the directorates general of the MOA. It does nothave the capability for overall planning and development of agriculturaleducation and training activities in relation to the country's long-termdevelopment requirements. The Agency should develop a capacity to assess, ona continual basis, these long-term manpower needs in terms of both quantityand quality and plan its education and training activities accordingly.The planning unit of the Agency should, therefore, be strengthened withqualified personnel to perform these functions. In addition, the agencyshould also take steps to strengthen its evaluation. It should develop andimplement a system to evaluate the placement and performance of the graduatesof the agricultural development schools and the effectiveness of in-servicetraining given to extension workers.

2.12 Quality of Training in Provincial Agricultural Development Schools.The quality of training in provincial agricultural development schools isgenerally poor. For lack of adequate financial support from the provin-cial governments, these schools do not have essential physical facilities andequipment nor sufficient qualified teachers (para. 2.09). Their operation isuneconomical, having an average enrollment of about 100 students per school(Table 2.2). The average passing rate on the final examinations administeredby the Agency for the graduating students ranges from 40%, in schools with thelowest standards, to 76% in the better provincial schools. This comparesunfavorably to an average of 97% in the national schools improved underCredit 288-IND. These provincial institutions, however, are presently reliedupon by the Government to provide most of the middle-level manpower needed foragricultural development, since the few improved schools can provide onlyabout one fourth of the requirement. The recruitment of these poorly trainedgraduates continues to affect adversely the quality and efficiency of theagricultural services. The national government needs to assist the provincialgovernments in upgrading these schools since they play a vital role in theagricultural development of the country.

2.13 Equity in Education and Training Opportunities. Of the 26 prov-inces in Indonesia, only 12 have agricultural development schools producingadequately trained graduates. Five other provinces have access to these

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institutions to a limited extent. The remaining provinces are served bysubstandard institutions. Due to the shortage of well-trained graduates,coupled with the reluctance of these graduates to accept employment in theouter island provinces, the agriculture departments in these poorly servedprovinces tend to be weak, having to employ either inadequately trainedagriculture graduates or general secondary school graduates who have had notraining in agriculture. These unqualified staff have little opportunity toimprove their skills for lack of local in-service training since the in-servicetraining centers are, in general, located in the same provinces as the improvedagricultural development schools. Improvement of the quality of agriculturalmanpower in the remaining provinces necessitates the upgrading of theirexisting training institutions and establishing new institutions where theyare needed and where no training opportunities are available.

2.14 New Programs. There are three vital areas for which programs arenot currently given by the existing agricultural education system: (a)training for female extension workers; (b) preservice training for forestrytechnicians; and (c) training for managers of agricultural development projects.The present female extension workers of the MOA (about 300), who implementthe home improvement program for farm women (para. 1.03), are graduates ofhome economics senior secondary schools of the Ministry of Education, whosetraining program is focussed on urban home improvement. Only about 5% ofthese workers, who now occupy supervisory posts, have undergone rural homeimprovement training. Training progams focussed on the skill requirements ofthese extension workers need to be established, particularly in view ofthe MOA's plans to expand the rural home extension program. In forestry,the existing technicians are recruited from graduates of general seniorsecondary schools who have had no training in forestry. To prepare thesetechnicians for the tasks they are expected to perform (e.g., forest andwildlife conservation, plantation and watershed management, forest exploita-tion control, logging and wood processing operations), they are given a10-month induction course immediately upon their appointment. This course,however, has been found to be too short and too general to meet their trainingneeds. A program of preservice forestry training should, therefore, be estab-lished. The various existing agricultural development projects of the MOAare managed by higher level agricultural technicians (university graduates)who had no training in project management. These project managers havebeen generally found to be weak in project planning and development, budgetpreparation and administration and project supervision. In addition, thosewho manage the extension projects lack a thorough understanding of therecently introduced training and visit system of extension (para 1.03) bywhich these projects are being carried out. An in-service training programfor these project managers would be needed to improve their managerial skills.

Plans and Strategy in Middle-Level Education and Training

2.15 With the assistance of an FAO Survey Mission on middle-level agri-cultural education and training in Indonesia (1971), the Government developeda long-range strategy for the improvement of the quality and supply of middle-level agricultural manpower. The first phase was to focus on: (a) estab-lishment of a central agency to be responsible for planning and managing all

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middle-level training in the country and for administering all trainingprograms of the MOA; and (b) improvement of selected national traininginstitutions to meet the country's most urgent training needs, largely forfood crop production, research and extension technicians. The second phaseof the strategy would be to: (a) improve existing, or establish new trainingprograms which were not included in the first phase (i.e. marine fishery,forestry, rural home improvement and project management); (b) extend quali-tative improvements to provincial preservice institutions; and (c) establishnew preservice and in-service institutions in provinces which have no accessto adequate training facilities. In addition, institution building of theAAETE would be continued. In particular, its planning and evaluation func-tions would be further strengthened to increase its effectiveness in provid-ing the needed quantity and quality of middle-level manpower to implement theGovernment's agricultural development plans.

2.16 The first phase of this strategy, implemented under Credit 288-IND(para. 2.04), has recently been successfully completed. The completionreport for the project (July 1978) indicates that the project institutionsnow have adequate teaching facilities, satisfactory curricula, and an ade-quate number of qualified full-time teachers, and they are being provided bythe Government with sufficient operating funds. The student dropout rateat the project schools has decreased from 24% at the time of appraisal(1971), to 2.6% in 1977, while the percentage of graduating students whopassed the national final examination increased from 78% to 97%. In addi-tion, the AAETE has successfully integrated all training programs of theMinistry of Agriculture under its administration and management and hasextended institutional supervision to the provincial and private middle-level agricultural institutions.

2.17 During the next national development plan period (Repelita III,1979/80-1983/84) the Agency intends to implement the second phase of theGovernment's strategy, and to resolve the problems facing the present agricul-tural education and training system (paras. 2.11-2.14). The investment planof the Agency during Repelita III for agricultural training amounts to aboutRp 33 billion.

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3. THE PROJECT

Objectives and Scope

3.01 The project constitutes the second phase (para. 2.15) of theGovernment's long-range strategy to improve the quality and supply of middle-level agricultural manpower. In accordance with the strategy, the projectwould pursue the following objectives:

(a) to upgrade the quality and increase the output of existingpreservice and in-service training institutions;

(b) to provide preservice and in-service training facilities in selectedprovinces where none exists;

(c) to develop new training programs in response to needs arising out ofGovernment development plans for the agricultural sector; and

(d) to strengthen the planning and management capabilities of the Agencyfor Agricultural Education, Training and Extension (AAETE).

3.02 The proposed project components are as follows:

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Numberof insti- Existing Additional Total

Component tutions places places places

a. Agricultural Development Schools(grades 10-12) 31 4,560 2,880 7,440

(i) additions /a to existing schools(11 agriculture and 3 animal husbandry) 14 /b 3,000 360 3,360

(ii) relocation of existing schools(6 agriculture, 1 animal husbandry,and 1 marine fishery) 8 1,080 840 1,920

(iii) rehabilitation of existing schools(2 agriculture and 2 animal husbandry) 4 480 480 960

(iv) establishment of new schools (2 animalhusbandry, 1 inland fishery and 2forestry) 5 - 1,200 1,200

b. In-service Training Centers(nonformal) 23 1,020 560 1,580

(i) additions /a to existing centers(11 agriculture, 1 forestry, 1national institute) 13 /b 830 110 940

(ii) relocation of an existingforestry center 1 80 - 80

(iii) rehabilitation of existing centers(1 forestry and 1 marine fishery) 2 110 30 140

(iv) establishment of new centers(6 agriculture, 1 animal health) 7 - 420 420

c. Project Implementation Unit Support - - -

d. Technical assistance /c - - -

Total 54 5,580 3,440 9,020

/a Addition of facilities for new courses and boarding of students.

/b Schools or centers which were improved under Credit 288-IND.

/c Includes specialist services for the training institutions and for theAAETE, fellowships, special studies, future project preparation and otherrelated activities.

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A list of project institutions, their locations and categories according totype and administration (national or provincial) and the proposed assistanceunder the project is shown in Annex 2.

Agricultural Development Schools (Estimated outlay, US$31.5 million, exclud-ing technical assistance and contingencies)

3.03 This component is designed to accomplish the following:

(a) to improve the quality of training and expand enrollments of 12existing schools;

(b) to establish five new national schools in provinceswhere there are acute shortages of trained middle-level agri-cultural manpower, of which three in provinces where no suchinstitutions exist;

(c) to introduce new teaching programs: rural home improvement coursesfor female students in all schools oriented to crops and livestockand three-year preservice course for forestry technicians; and

(d) to provide additional facilities and equipment to schools improvedunder the first phase project to enable them to implement newprograms of the Government (para. 2.09).

3.04 By upgrading 12 existing schools (1 national and 11 provincial)and establishing 5 new national schools, the proposed project would increasethe number of well established and improved schools from the existing 15 to32, including the marine fishery school (240 places) assisted under an FAOproject (para. 2.04) as indicated in Table 3.1. The national school (marinefishery) to be upgraded is one of the two national schools which were notimproved under Credit 288-IND. This school would be relocated since itspresent site does not have immediate access to the sea. The other nationalschool (inland fishery) lacks laboratory facilities and space in its presentsite for practical training (para. 2.09). This school, however, was notincluded in the proposed project since the Government had not decided whereto relocate it at the time of appraisal. A 100 GT training vessel will beprovided for practical training of the marine fishery students. Upon comple-tion of the project, 11 of the 17 schools would be located in outer islandprovinces (para. 2.13). The capacity of each project school would be 240students. This would mean an increase in enrollment at 14 schools, 3 ofwhich were improved under Credit 288-IND and have capacities of 120 studentseach. Total enrollment in upgraded schools would, therefore, increase fromthe present 3,240 to 7,680, and the output would increase from 975 to about2,400 when the project schools become fully operational. At that time theimproved schools would be able to admit a total of 2,640 new students annu-ally. No problems are foreseen in recruiting the students; in 1977, therewere more than 4,000 applicants from all over the country for the 1,000available places at the 14 improved schools.

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Table 3.1: IMPROVEMENT AND EXPANSION OF AGRICULTURALDEVELOPMENT SCHOOLS IN INDONESIA /a

Phase I (Cr 288) Phase II (Prop.) TotalType No. Enrollment No. Enrollment No. Enrollment

National (14) (3,360) (6) (1,440) (20) (4,800)Agriculture

Crops 11 2,640/b - - 11 2,640Animal husbandry 3 720 2/c 480 5 1,200Inland fishery - - 1/c 240 1 240

Marine fishery - - 1 240 1 240Forestry - - 2/c 480 2 480

Provincial (-) (-) (11) (2,640) (11) (2,640)AgricultureCrops - - 8 1,920 8 1,920Animal husbandry - - 3 720 3 720

Total 14 3,360 17 4,080 31 7,440

/a Excludes one national fishery school (240 place) which was improved underan FAO project. All schools are existing except as indicated.

/b Includes enrollment expansion of three schools from present 120 each to240, under the proposed project.

/c Not existing; to be established.

3.05 Recurrent Financing of Provincial Schools. All of the 5 new schoolsto be established would be national, and 3 of the 11 provincial schools to beupgraded under the project would be converted into national schools. Thesethree schools would emphasize animal husbandry and, as such, their conversionwould be in accordance with a decision of the national Government to fullyfinance livestock oriented schools. The national Government has a goodrecord of providing sufficient recurrent funds for national schools. Theprovincial governments, however, generally do not provide sufficient recur-rent funds for operation of the provincial schools (para. 2.12). At negotia-tions, assurances were provided by the national Government that it wouldcause the necessary recurrent funds to be provided when the provincialschools become fully operational.

3.06 Curriculum. The 14 schools under the project which would trainagricultural technicians (crop, livestock and inland fishery) would adoptthe curriculum introduced under the first phase project (para. 2.08). Thecurriculum would, however, be reviewed and improved as necessary. New coursesin rural home improvement for female students would be developed and introducedat all 28 agricultural schools (Table 3.2) in lieu of the farm mechanics and

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machinery courses. On a temporary basis the project marine fishery schoolwould continue to follow the curriculum being offered at the Tegal MarineFishery School (Central Java) which has been improved with FAO assistance.However, this curriculum would also be reviewed and any necessary changeswould be made. A three-year curriculum for forestry technicians would bedeveloped for the forestry schools to be established under the proposedproject. The review, improvement, or development of curricula would beassisted by specialists to be provided under the project (para. 3.19).

3.07 Teachers. Each project school would have 13 full-time teachers.Of these, 9 would have at least a Sarjana Muda degree (grade 15) and therest, who would take charge of practical training, would be at least grad-uates of agricultural development schools with no less than five years ofpractical field experience in the extension service. All of the 14 schoolsthat were improved under Credit 288-IND have a sufficient number of quali-fied full-time teachers for their present capacities. However, additionalteachers would be needed in the future for three of these schools which wouldbe expanded from a capacity of 120 to 240 students under the proposed project(para. 3.04). Taking into account the present number of full-time teachers inthe existing schools which are included in the project, an additional 119full-time teachers would be needed when the project is completed. Theteacher requirements of the different types of project institutions are asfollows:

Table 3.2: FULL-TIME TEACHER REQUIREMENTS OF PROJECTAGRICULTURAL DEVELOPMENT SCHOOLS

Number Existing AdditionalType of school of schools teachers teachers required Total

Agriculture 28 277 87 364Forestry 2 - 26 26Marine fishery 1 7 6 13

Total 31 284 119 403

No problems are foreseen in recruiting teachers from the existing agriculturaluniversities which produce about 1,500-2,000 Sariana Muda graduates yearly.Teachers (28) for the rural home improvement course would be selected fromthe existing female extension staff.

3.08 There are no preservice training courses for agricultural teachersin Indonesia. Instead, in-service training courses are given at the NationalAgricultural Training Institute (NATI). Teachers are not considered qualifieduntil they have taken this course. All of the existing teachers of nationalmiddle-level agricultural institutions have taken the teacher trainingcourse, but only about 20% of the 600 full-time teachers of provincial andprivate agricultural schools have done so. Therefore, all new teachers forproject schools, as well as the existing teachers who have not had any training

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in pedagogy, would need to take the in-service training course at the NationalInstitute. During negotiations, assurances were obtained from the Governmentthat by June 30, 1985 teachers of all the project schools who had no trainingor received insufficient training in pedagogy would have completed the in-service teacher training course.

3.09 Schools Under the First Phase Project (Education II, Credit 288-IND).The 14 agricultural development schools which were improved under the firstphase project would be provided, as necessary, with additional facilities andequipment to enable them to offer courses in rural home improvement and tostrengthen training in animal husbandry in support of present Governmentprograms to promote home improvement activities among farm women (para. 1.03)and provide farmers with disease control and artificial insemination services(para. 1.08). These programs were not considered as priorities in theGovernment's agricultural development program when the first phase projectwas developed and therefore training in these fields was not covered bythe project. Additional boarding places would also be provided to enable allstudents to reside on the school campus (para. 2.09). Also, additionalfacilities, equipment and housing would be provided for the three schoolswhich were designed for 120 students and would be expanded to 240 places

under the project.

In-service Training Centers (Estimated outlay, US$11.1 million, excludingtechnical assistance and contingencies)

3.10 The objectives of this component are:

(a) to extend in-service training opportunities for middle-leveltechnical staff of the MOA to six provinces where suchopportunities are not available;

(b) to upgrade the quality and, where necessary, expand the output ofthree existing training centers (two forestry, and one marine fisherywhich were not improved under the first phase project nor by FAO;

(c) to strengthen existing in-service training programs for livestocktechnicians, add new programs for female extension workers andanimal health assistants and provide additional places and housingfor additional staff as necessary at 11 of the 13 /1 agriculturecenters and add laboratory and workshop facilities at the forestrycenter, which was upgraded under the first phase project;

(d) to improve and expand the inservice program for agricultureteachers of national, provincial and private middle-level agricul-tural training institutions; and

(e) to develop a new training program for managers of MOA agricultural

development projects.

/l The other two of these centers will be provided with additional facili-ties and equipment under a project assisted by the Japanese Government.

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3.11 With the establishment of seven new agricultural in-service trainingcenters and the upgrading of three existing centers not included under Credit288-IND, the proposed project would increase the number of improved trainingcenters to 27 including the center assisted by FAO (Table 3.3). Only 3centers will remain unimproved. These three centers were not included in theproposed project since the Government is considering relocating them and nodecision had been made by the time of appraisal.

Table 3.3: IMPROVEMENT AND EXPANSION OF IN-SERVICETRAINING CENTERS IN INDONESIA /a

Phase IIPhase I (Cr 288) (Proposed) Total

Student Student StudentType No. places No. places No. places

Agriculture 13 710 6/b 430/c 19 1,140Marine fishery - 1 60 1 60Forestry 2 160 2 160 4 320Animal health - - l/b 60 1 60National institute 1 160 - 40 1 200

Total 16 1,030 10 750 26/d 1,780

/a All centers are existing except as indicated./b Not existing; to be established./c Includes 70 additional places for three centers under Phase I (from

110 places to 180)./d Excluding one center (60 places) improved under an FAO project.

When all training facilities are completed, the training places in alltraining centers (including the FAO improved center (60 places) and the threeunimproved centers (220 places) would increase from the present 1,490 (Table2.3) to 2,060 and the number of trainees per annum from 5,650 (Table 2.3) to8,240. Only 8 of the 26 provinces of the country would remain without localin-service training centers. These 8 provinces which at present have rela-tively few agricultural personnel would continue to send their trainees toneighboring provinces which have training centers. Each of the agriculture,marine fishery and animal health centers would have 60 places and the fores-try centers would have 80. To reach this capacity, 3 of the agriculturecenters improved under Credit 288-IND and an existing fishery center would beexpanded. Forty new places would be added to the existing 160 places of theNational Agricultural Training Institute (NATI). In addition, laboratory andworkshop facilities will be added to one forestry center assisted underCredit 288-IND (para. 2.10).

3.12 The agriculture, forestry and fishery training centers would caterto the training needs of middle-level technical staff of the MOA. In 1984this staff is expected to consist of about 40,000 technicians distributedamong the five directorate generals (Food Crops, Estate Crops, Animal

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Husbandry, Forestry and Fisheries) of the MOA (para. 1.10). The NationalInstitute would take care of the in-service training needs of the higher-level staff of the MOA (about 3,000) and of agricultural teachers of allmiddle-level agricultural training institutions in the country (para. 3.08).

3.13 Curriculum. The agriculture, marine fishery and forestry in-servicetraining centers would continue to offer two general types of courses(para. 2.10). At the agriculture centers, the first type (remedial program)consists of three two-month courses in crop, livestock and inland fisherywhich follow closely the technical subjects in the curriculum of the agricul-tural development schools. At the forestry centers, the remedial programconsists of a ten-month course in forest and wildlife conservation, forestexploitation and wood processing. At the marine fishery centers it consistsof a four-month course in navigation, engine operation and maintenance andfish capture. The second type of courses in all of the above centers coversa wide range of technical subjects and extension methods and techniques,depending upon the discipline of the center (viz. agriculture, forestry ormarine fishery) and on the training needs of the staff. These courses areoffered to those who have completed the remedial program and to the staff whoare graduates of agricultural development schools. The animal health centerwould conduct 4-6 month in-service courses for animal health assistants indiagnosis,, treatment and prevention of animal diseases to support the ongoinganimal disease control program of the Government (para. 1.08). Technicalassistance would be provided under the project for improvement of the fores-try, inland fishery and marine fishery curricula (para. 3.19). Courses intwo new fields would be added at the agriculture centers: (a) rural homeimprovement for women extension workers; and (b) animal disease preventionand control for animal health technicians. Technical assistance would beprovided under the project for development of these courses (para. 3.19).

3.14 At the National Institute a project management training programwould be introduced for staff who take charge of the various developmentprojects of the MOA (para. 2.14). The program, may include courses incommunity survey and program planning, project preparation and development,project administration and supervision, accounting and extension methods andtechniques. This program would be given priority over other administrationand management courses of the Institute until the training needs of projectmanagers are satisfactorily met. About 80% of the training places at theInstitute would be made available for this project management training. Therest (20%) of the training places would be utilized for training in pedagogyof new and under-qualified agriculture teachers. The project managementtraining program, as well as improvements to the teacher training programwould be developed with the assistance of specialists provided by the project(paras. 3.19 and 3.20). Project management training would start in aboutmid-1980.

3.15 The AAETE would be responsible for determining training needs inclose consultation with the different Directorates General of the MOAand other relevant agencies of the Government, as necessary. In response tothese needs, the Agency would also take charge of initiating and developingappropriate courses with the assistance of selected directors and staffmembers of the middle-level agricultural training institutions. Before the

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start of each training year, the Agency would prepare an in-service trainingplan indicating: (a) the courses to be offered in each training center;(b) course duration; and (c) the number of staff to be trained under eachcourse. In addition, the Agency would also allocate the training places tothe different agencies in accordance with their staff training needs.

3.16 Teachers. Each training center for middle level staff would havefive full-time teaching staff whose qualifications would be at least a SarlanaMuda degree in agriculture or related sciences. The national institute wouldalso have five full-time teachers who would have Sarjana degrees. Qualifiedpart-time teachers would be recruited as necessary from the agriculturaluniversities and qualified staff of the MOA. No problems are foreseen inrecruiting the required 30 additional qualified full-time and part-timeteachers. As in the case of the agricultural development schools (para.3.08), the Government gave assurances at negotiations that all new full-timeteachers, and all existing full-time teachers who have had insufficientpedagogical training would take the in-service teacher training course at theInstitute by June 30, 1985.

Technical Assistance (Estimated outlay, US$3.2 million, excludingcontingencies)

3.17 The technical assistance component under the proposed project isdesigned to serve two objectives: (a) to provide support for the implementa-tion of the training programs under the project; and (b) to assist the Govern-ment in strengthening the educational planning and management capacity of theAAETE. These objectives would be achieved through a combination of specialists'services and fellowship training for teachers and Agency staff. The specia-lists' services and fellowships to be provided under the project are asfollows:

Table 3.4: TECHNICAL ASSISTANCE

Fellowships (man-months)Specialist services Short courses Degree

(man-months) and study tours programs

Naval Architect 6 -

Marine fishery education 24 - 54Inland fishery education 24 - 54Forestry education 24 - 144

Agricultural education(crops and livestock) - - 1,044

Rural home improvementeducation 24 - 54

Agricultural teacher training 24 - 126Educational planning andmanagement 48 70 102

Total 174 70 1,578

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To ensure timely implementation of the technical assistance component, theGovernment prepared a plan for specialist services and fellowships. Thespecialist services program indicated the following for each specialist:(a) field of specialization and qualifications; (b) timing and duration ofservice; (c) recruitment procedure; (d) duty station; and (e) terms ofreference. The fellowship program indicated the following for each fellow-ship post: (a) field of training; (b) timing and duration of studies; and(c) institution where training would be carried out. The fellowship programtook into account the staff training needs of each project institution. TheGovernment had also selected the agency to recruit the technical assistancespecialists to be provided under the project. During negotiations, the planfor specialist services and fellowships were discussed and, with slightmodifications, were agreed upon by the Bank and the Government.

3.18 All the specialists would be under the adminstrative control of theAAETE. The specialists would report directly to the Head of the Agency, or tohis authorized representative who would be responsible for supervising thespecialists' activities. This arrangement would be indicated in the employmentcontracts of the specialists with the Government.

3.19 Assistance for Training Programs. The specialists in marine andinland fishery education would assist in reviewing the relevance of fisheriestraining programs to the Government's fishery development program and totraining needs of fishery technicians (para. 2.08). Based on this assessment,the specialists would help in designing and implementing necessary improve-ments in training. A naval architect, to be provided under the project,would assist in preparing the design and specifications of the marine train-ing vessel (para. 3.04), considering international requirements for safetyand health provisions. The forestry and rural home improvement educationspecialists would provide guidance in developing and implementing new train-ing programs for students and teachers in their respective fields, based onthe functions and skill requirements of forestry technicians and homeimprovement extension workers. The specialist in agricultural teachertraining would assist in reviewing and revising as necessary the curriculumof the agriculture oriented schools and training centers and in determiningthe training needs of middle-level agricultural teachers. Accordingly, thespecialist would help improve the existing in-service teacher training courseat the National Agricultural Training Institute. Access to these courseswould be made more easily available to teachers of provincial and privateinstitutions. All fellowships allocated for the different training fields asindicated in Table 3.4 would be for development of the staff of the projectinstitutions.

3.20 Assistance for Planning, Management and Evaluation. The special-ists in program planning and management would assist the AAETE in strengthen-ing the evaluation and planning unit of the Agency. This unit would be maderesponsible for the overall planning of the agricultural education andtraining programs of the MOA in relation to the country's current and long-term development requirements (para. 2.11). The unit's main concern would beto: (a) assess and regularly update the short- and long-term manpower needsat all levels in the agricultural sector; (b) regularly evaluate the rele-vance to employment requirements of the MOA's agricultural education andtraining programs; and (c) plan for the improvement and further development

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of the programs accordingly. In addition, the unit would assist in monitor-ing and evaluating agricultural education and training projects under theMOA. Fellowship training would be provided for key staff of the unit. Thespecialists would also assist the Agency in setting up and coordinating atracer system in each of the project institutions to keep track, of theemployment and performance of their graduates. After the Planning Unit andthe tracer system have been established, the specialists would provideleadership in conducting a middle-level agricultural manpower survey and atracer study of the graduates of the 14 project institutions improved underCredit 288-IND, focussing on the placement and performance of the graduates.The specialists assigned to the Agency would also be responsible for assess-ing the need for training of higher-level MOA staff in project management andfor developing relevant training courses to be offered at the NationalInstitute. During negotiations, assurances were obtained from the Government:(a) that by June 30, 1980: (i) the planning unit under the AAETE would havebeen strengthened with qualified staff as required; (ii) plans for carryingout the manpower survey and project evaluation (tracer and follow-up studies)would have been prepared, reviewed by the Bank and be ready for implementation;and (iii) the training program for agricultural project managers would havebeen developed in consultation with the Bank; and (b) that by June 30, 1981the tracer system would have been set up in each operating project institutionand the manpower and tracer studies would have been completed.

Project Management and Preinvestment Studies (Estimated outlay, US$3.0 mil-lion, excluding contingencies)

3.21 Specialists would be provided to assist in procurement, conductingfeasibility studies, preparation of future education projects, and in carryingout project evaluation studies for the preparation of project completionreports. Part of the technical assistance allocation for project managementand studies would be utilized to finance expenditures required for the collec-tion of data for all of the studies to be conducted and for the preparation ofthe reports. The AAETE would take charge of the preparation of the completionreport for the proposed project.

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4. PROJECT COST, FINANCING, IMPLEMENTATION AND DISBURSEMENTS

Cost of the Project

4.01 Summary of Project Cost. The total cost of the proj:cwt is estimatedat about Rupiah 44 billion or US$71 million equivalent. The estimated cost byproject component is summarized in Table 4.1:

Table 4.1: SUMMARY OF COSTS BY PROJECT ITEM /a

Rupiah (Billions) US$ (Millions)Project item Local Foreign Total Local Foreign Total

Agricultural DevelopmentSchools (SPPs)

Additions to/expansion/rehabilitation ofexisting schools 1.30 1.21 2.51 2.08 1.93 4.01

Relocated/new schools 9.21 7.94 17.15 14.74 12.71 27.45

Subtotal 10.51 9.15 19.66 16.82 14.64 31.46

In-Service TrainingCenters (ISTCs)

Additions to/expansion/rehabilitation ofexisting centers 1.42 1.15 2.57 2.27 1.84 4.12

Relocated/new centers 2.18 2.01 4.19 3.50 3.22 6.72

National AgriculturalTraining Institute 0.10 0.09 0.19 0.15 0.15 0.30

Subtotal 3.70 3.25 6.95 5.92 5.21 11.13

Project ManagementSupport andTechnical Assistance 0.98 2.91 3.90 1.57 4.66 6.23

Total Base Costs 15.20 15.31 30.51 24.32 24.50 48.82

ContingenciesPhysical 1.52 1.53 3.05 2.43 2.45 4.88Price 5.34 5.45 10.79 8.55 8.72 17.27

Subtotal 6.86 6.98 13.84 10.98 11.17 22.15

Total Project Cost 22.06 22.29 44.36 35.30 35.67 70.97

/a Totals may not add up due to rounding.

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4.02 A breakdown of estimated project costs by categories of expenditureis summarized in Table 4.2:

Table 4.2: SUMMARY OF PROJECT COSTS BY CATEGORY OF EXPENDITURE /a

Rp (billions) US$ (millions)Type of expenditure Local Foreign Total Local Foreign Total

Civil WorksSite development 2.31 1.54 3.84 3.69 2.46 6.15Academic/communal }Student boarding } 9.22 6.15 15.37 14.75 9.84 24.59Staff housing }Professional services 1.27 0.85 2.11 2.03 1.35 3.38

Subtotal 12.80 8.53 21.33 20.47 13.65 34.12

Furniture and EquipmentFurniture 0.83 0.55 1.38 1.33 0.88 2.21Equipment 0.60 3.39 3.98 0.95 5.42 6.37

Subtotal 1.43 3.94 5.37 2.28 6.30 8.59

Technical AssistanceFellowships 0.07 1.95 2.02 0.12 3.11 3.23Specialists Project administration /b 0.90 0.90 1.80 1.44 1.44 2.88

Subtotal 0.97 2.85 3.82 1.56 4.55 6.11

Base Costs 15.20 15.31 30.51 24.31 24.50 48.82

Contingencies 6.87 6.98 13.85 10.99 11.17 22.15

Total Project Costs 22.07 22.29 44.36 35.30 35.67 70.97

/a Totals may not add up due to rounding.

lb Includes experts to assist in procurement, preparation of the projectcompletion report, conducting feasibility studies and preparation offuture education projects. Part of allocation would be used for logis-tical support of the experts.

4.03 Bases of Cost Estimates. Base cost estimates refer to January1979. Costs of the project buildings have been determined by: (a) estimatingthe required academic and communal facilities for the planned number ofstudents and staff on the basis of functional and economic accommodation

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schedules; (b) assessing boarding requirements as a function of area require-ments per student; (c) assessing the staff housing requirements to attractqualified staff; (d) subtracting the usable existing facilities from (a),(b), and (c) above; and (e) establishing the estimated area unit costs onthe basis of recent bidding experience. During negotiations the cost esti-mates were updated on the basis of architectural sketch plans. Utilizationfactors for the project agricultural development schools would average 75%based on 42 teaching periods per week. Costs per square meter of gross floorarea range from US$75 for animal houses to US$150 for academic buildings.These unit costs are comparable with building costs in the region (Malaysia,Philippines and Thailand). Site development costs were estimated at 15-33%of construction costs, depending on the accessibility of sites, land fillrequirements, and site facilities needed (e.g. fishponds). Cost adjustmentsfor locations have been incorporated in the costs of individual projectitems. Gross areas and costs per student place are shown below.

Table 4.3: AREAS/COSTS PER STUDENT PLACE

Gross Area Costs in US$ per Student PlaceSite Furn- Equip-

(sq. m) dev. Buildings iture ment Total

Academic/Communal

Aglr iltural DevelopmentSchools

Agriculture 11.5 415 1,655 150 640 2,860Inland fisheries 11.5 660 1,655 150 1,025 3,490Marine fisheries 10.1 365 1,455 130 3,460 5,410Animal husbandry 12.4 445 1,785 150 770 3,150Forestry 11.6 420 1,670 150 770 3,010

In-Service_Training CentersForestry 15.6 560 2,245 200 1,540 4,545Agriculture and marine

fisheries 22.1 790 3,180 250 1,700 5,920

BoardingAgricultural Development

Schools 6.5 235 940 85 1,260In-Service Training Centers 6.9 250 990 90 1,330

4.04 The cost of professional services has been estimated using t'aeapplicable fee scale of the National Planning Agency (BAPPENAS), and rangesfrom 8.25% to 14.0% of the estimated cost of construction and site develop-ment, depending on the location. The building plans developed for thefirst agriculture training project (Credit 288-IND) will be adjusted and

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modified to fit the requirements of this project. Furniture costs have beenestimated at 9% of the construction costs, and equipment estimates were basedon equipment lists which are considered reasonable. The cost of equipmentper student place in the Marine Fishery development school is high comparedto the other project institutions. This is due to the need for a 40 place,100-GT training vessel costing about US$600,000. This vessel is essentialfor the practical training of marine fishery technicians. The alternative ofleasing or renting a vessel was considered during appraisal but not found tobe feasible. The technical assistance program was costed as follows:US$80,000/ man-year for expatriate specialist services; US$13,000/man yearfor fellowships for overseas training; US$2,000/person for overseas travel;and US$750/person/ month subsistence for short-term fellowships.

4.05 Foreign Exchange Component. The foreign exchange content of eachcategory of expenditure has been estimated as follows: (a) civil works andprofessional services, 40%; (b) furniture, 40%; (c) equipment, 85%; and(d) technical assistance and fellowships, 75%. The foreign exchange compo-sition of the various categories of expenditure has been derived by analysisof the tax, profit, overhead, materials, equipment and labor contentsof locally procured civil works, goods and services.

4.06 Contingencies. The contingency allowance of US$22.2 millionincludes: (a) physical contingencies estimated at 10% of the base cost;and (b) price contingenies averaging 32% of the base cost plus physicalcontingencies. Price contingencies were calculated on the basis of theimplementation schedule (Annex 3) and expected annual increases between 1979and 1984 as follows:

Table 4.4: ANNUAL PRICE INCREASES

Annual Percentage of Price IncreasesYear Local Foreign Total

Civil works, furnitureand professional services 1979 30 7 22

1980 20 7 151981/82 15 7 121983/84 10 7 9

Equipment 1979 30 7 101980 20 7 91981/82 15 7 81983/84 10 7 7

Technical assistance 1979 30 7 91980 20 7 81981/82 15 7 81983/84 10 7 7

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4.07 Customs Duties and Taxes. Directly imported project items wouldbe exempt from customs duties and taxes. Of the estimated total projectcost including contingencies, taxes would amount to about US$3.0 millionequivalent.

Project Financing

4.08 The proposed loan of US$42 million would finance 100% of theforeign exchange cost and 18% of the local cost or 64% of the total projectcost, excluding taxes and the cost of vehicles (para. 4.13). The Governmentwould finance the remaining costs. At full operating capacity, the annualrecurrent expenditures generated by the project would be about US$4.7 millionequivalent (1978 prices) which would amount to 37% more than AAETE's budgetedrecurrent expenditure for 1978/79. Since the full amount of these recurrentcosts will not be incurred until 1984 or 1985, and would be shared with theprovinces where the project provincial schools are located, it is reasonableto assume that sufficient funds would be available to the Agency to coverthem. This seems probable given the rate of increase in recurrent expen-ditures by the Agency from US$5.7 million equivalent in 1976/77 to US$12.5million equivalent budgeted for 1978/79. During negotiations the Bank andGovernment agreed on the estimated annual allocations in the Government'sFY1979-80 budget to cover expected project expenditures.

Implementation

4.09 Administration. The project would be implemented by the ProjectImplementation Unit (PIU) which was established within the AAETE for thefirst agricultural training project (Credit 288-IND). A decree (No. 66/Kpts/Org/1/1979) was issued on January 22, 1979 by the Minister of Agriculture tore-establish the PIU. The decree also provides for the strengthening of thePIU. Due to the more extensive coverage of this project (54 sites) as comparedto that of the first agricultural training project (30 sites) two deputydirectors were added - one to assist in the implementation of the educationalaspects of this project and the other in implementation of the physicalaspects. In addition, the finance officer, procurement officer and thearchitect of the PIU would be provided with qualified assistants. Provincialimplementation committees would also be organized as an implementing arm ofthe PIU in each of the provinces where the project sites are located. Eachcommittee will be composed of representatives of the Provincial Departmentsof: (a) Agriculture (Chairman); (b) Public Works; and (c) Home Affairs. Thecomposition of the PIU would be as follows:

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Chart 4.1: ORGANIZATIONAL STRUCTURE OF THEPROJECT IMPLEMENTATION UNIT

HeadAAETE

IDirector

PIU

Deputy * Deputy *

(Educational Aspects) a (Physical Aspects)

4.10 ncPrOffesinacerrvicues.Prfenina Aervhitcsrqie frorincivil*

Off icer ProjectImplementing[ X X [ ~~~~~~~~~~~~~~~~~~~Committees

b Accountant* l co Assistant* a f Engineer* t

The Government is expected to re-appoint the previous PIU staff and appointall the needed additional staff at the start of their fiscal year ei April1979.-

4.10 Professional Services. Professional services required for civilworks and procurement of furniture under the project would be carried outby qualified local consultant architect firms acceptable to the Bank.

Contracts have been signed with four selected firmns. Substantial progress

llas been made in the preparation of site and sketch plans. Under the first

phase project (Credit 288-IND), the late hiring of architectural consultants

delayed civil works implementation by about 6 months. Funds (not exceeding

US$320,000) to pay for these professional preparatory services, prior to

signing of the proposed project, were made available under the Bank's Project

Preparation Facility arrangement.

* To be added.

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4.11 Sites. The Government would provide a minimum of 30 ha for eachnew school site and 10 ha for each new training center site. Based on ananalysis by Bank staff of the land requirement of these training institutions,the area of the sites to be provided would be adequate., Under Credit 288-IND,the Government provided 50 ha for each project school site and 10 ha for eachtraining center site as agreed upon with the Association. However, theGovernment met difficulties in acquiring enough land for the two new projectschools and additional land for two existing training centers. These centerseventually were transferred to new sites. This caused a further five-monthdelay in construction in addition to the delays already experienced due tolate appointment of architects (para. 4.10). As a result of these twofactors, the project incurred a total cost overrun of about US$1 millionequivalent or 8% over the total project cost estimate at appraisal. To avoidsimilar delays in site acquisition, the Governors of each province where thesites are located were requested by the AAETE to submit written guarantees tothe Government that the sites are available and free from encumbrances. Allthe proposed sites were visited either by the FAO preparation mission or Bankstaff. All of the proposed sites were found to be adequate. During negotia-tions the Government provided assurances that: (a) by December 1979 it wouldfinalize the acquisition of the necessary land for all the proposed projectsites (30 ha for each school and 10 ha for each training center); and (b) thenecessary access roads to newly opened sites would be repaired or constructedprior to the start of building construction to avoid delays in projectimplementation.

4.12 Implementation Schedule. Civil works would be carried out in twophases. Project construction would start in October 1980 and be completed bythe end of 1982. The Government has modified the master equipment listdeveloped for the first phase project (Credit 288-IND) in accordance with theequipment requirements of the proposed project. The list was agreed uponwith the Bank during negotiations. Procurement of equipment and furniturewould start about September 1979 and be completed around March 1983. Fellow-ship training would start in January 1980 and be completed in mid-1983. Thefirst technical assistance specialist (naval architect, para. 3.19) would behired in October 1979. All specialist services would be completed by mid-1984.

4.13 Procurement. Contracts for civil works, furniture and equipmentwould be grouped to the extent practicable to increase competition in bidding.Civil works contracts would be awarded on the basis of competitive biddingadvertised locally in accordance with Government procurement procedures whichare satisfactory to the Bank; but foreign contractors would be permitted tosubmit bids. Indonesia has well developed building industries and foreignfirms not already established in Indonesia are unlikely to bid due to therelatively small bid packages, averaging US$0.5 million and the scatteredconstruction sites. Except for vehicles, contracts for furniture and equip-ment costing more than US$50,000 equivalent would be awarded on the basis ofinternational competitive bidding in accordance with Bank Group Guidelines.In comparison of bids for equipment and furniture, local manufacturers wouldbe given a preferential margin of 15% on the c.i.f. cost of competing importsor the customs duty, whichever is lower. Except for vehicles, equipment and

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furniture which cannot be grouped to form packages of more than US$50,000equivalent would be awarded on the basis of competitive bidding advertisedlocally, subject to an aggregate amount of US$1.2 million equivalent. Inaddition, miscellaneous items excluding vehicles in packages not exceedingUS$15,000 equivalent and subject to an aggregate total not exceedingUS$0.5 million equivalent, could be purchased off-the-shelf on the basis of atleast three price quotations. Instructional materials and books would also beprocured on the basis of regular government procedures for such items or,where appropriate, from publishers after negotiations for bulk purchases.During negotiations the Government advised the Bank that all project vehicleswould be procured locally due to the Government's regulations on theimportation of vehicles. Because this reserved procurement procedure does notconform with the Bank Group's procurement guidelines, it was decided thatno vehicles would be financed under the proposed loan. Vehicles would beprocured entirely with Government funds. Review of tender evaluationdocuments would be required prior to the award of civil works contractsexceeding US$200,000 equivalent and furniture and equipment contractsexceeding US$50,000 equivalent.

4.14 Maintenance. Earlier Bank-financed agricultural training faci-lities have been reasonably well-maintained. The Government generallyprovides adequate budget for acceptable annual maintenance of physicalfacilities. During negotiations, the Government provided assurances that itwould allocate sufficient funds for the operation and maintenance of thetraining vessel (para. 4.04) in accordance with the schedule to be agreedwith the Bank.

Disbursements

4.15 The proposed loan of US$42.0 million equivalent would be disbursedover a period of five years as shown in Table 4.5. Disbursements would be onthe basis of:

(a) 60% of the cost of civil works;

(b) 100% of the c.i.f. cost of imported furniture and equipment, 95% ofthe ex-factory cost of locally manufactured furniture and equipment,and 65% of furniture and equipment procured locally; and

(c) 100% of the cost of fellowships, expert and professional services.

4.16 To the extent practicable, withdrawal applications would be aggregatedin amounts of US$50,000 or more prior to submission to the Bank for reimburse-ment out of the proceeds of the proposed loan. Savings from project furdscould be used with the Bank's approval for components related to the proposedand other World Bank Group assisted education projects. Funds drawn from theProject Preparation Facility, not exceeding US$320,000, would be reimbursedfrom the loan on the date of effectiveness (para 4.10). During negotiationsthe Government and the Bank agreed on procedures for an annual audit of projectexpenditures. Disbursements (Table 4.5) are expected to be completed byDecember 1984.

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Table 4.5: SCHEDULE OF DISBURSEMENTS(US$ °000)

IBRD/IDA Accumulated UadisbursedFY & Semester Disbursement disbursements balance

1980 1st 0.2 0.2 41.82nd 0.3 0.5 41.5

1981 1st 0.4 0.9 41.12nd 0.6 1.5 40.5

1982 1st 1.5 3.0 39.02nd 3.0 6.0 36.0

1983 1st 5.0 11.0 31.02nd 8.0 19.0 23.0

1984 1st 10.0 29.0 13.02nd 10.0 39.0 3.0

1985 1st 3.0 42.0

Monitoring and Evaluation

4.17 The PIU director and his deputies shall closely monitor projectimplementation and periodically evaluate the progress towards the attainmentof project objectives. Any implementation problems with which the PIU wouldnot be able to cope would be promptly referred to the Head of the AAETE bythe PIU director for appropriate action. The planning and evaluation unit ofthe AAETE which would be stengthened under the project (para. 3.20) wouldassist the PIU to develop a project monitoring and evaluation plan whichwould be carried out during the life of the project. At the end of eachcalendar year starting from December 1980 through the year of the projectClosing Date a project evaluation report would be prepared by the PIU inconsultation with the planning and evaluation unit of the AAETE and would becopied to the Bank. The evaluation reports would be used in preparing theproject completion report (para. 3.21).

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5. BENEFITS AND RISKS

Benefits

5.01 The principal benefit of the proposed project would be to helpeliminate one of the major constraints to implementation of the Government'splans for development of the agricultural sector - the shortage of qualifiedmiddle-level agricultural manpower. At full development (1984), about 1,400additional well-trained middle-level agricultural technicians would beproduced annually by project schools. Including the output of the schoolsimproved under Credit 288-IND and FAO assistance, the total annual output ofall improved schools would be about 2,400. This would satisfy the followingapproximate percentages of the annual requirements of the various agencies ofthe Ministry of Agriculture (MOA) for specialized staff: 50% in agronomy;90% in livestock production; 50% in inland fisheries; 25% in marine fisheries;and 40% in forestry. The remaining annual requirements would be met fromgraduates of unimproved schools, who would be given remedial training at thein-service training centers. Each year about 2,420 MOA staff would betrained at the project in-service training centers in addition to about 4,900presently being trained annually in existing centers, most of which wereestablished under Credit 288-IND. Of the total yearly output of thesetraining centers (7,320), 5,820 would receive courses in agriculture (includ-ing livestock production and inland fisheries), 960 in forestry and 540 inmarine fisheries. Also, as the output of qualified agricultural developmentschool graduates increases, the burden on the in-service training centers toprovide remedial training would be reduced. This would enable the centers toincrease gradually the emphasis of training programs on sharpening thetechnical expertise of the staff and keeping them abreast of developments inagricultural research. At the National Agriculture Training Institute, about800 administrative staff and 120 agricultural teachers would be trainedannually, an increase of 14% and 100%, respectively, over present numbers.The benefits of the teacher training program would extend beyond projectschools, as teachers of private schools would be given access to the centerfor the first time. The benefits of the new program to be offered by thecenter for project managers would be of particular importance by contributingto improvements in the planning and implementation of development projects inthe agricultural sector as a whole.

5.02 A further benefit produced by the project would be to improve thedistribution of training opportunities among the provinces of the country.Twenty-one provinces would have adequate pre-service training institutions,compared to 12 at present and 18 provinces would have local in-service trainingcenters, compared to 12 at present. Better access to good quality training inthe outer provinces will help to alleviate the serious lack of unqualifiedstaff in their Departments of Agriculture. This strengthening of the provin-cial extension services is essential, in particular, in view of the Government splans to greatly expand the transmigration program.

5.03 Another of the important benefits of the project would result fromthe strengthening of the institutional capabilities of the Agency for Agricul-tural Education, Training and Extension (AAETE). This further institutionbuilding, which was begun under the first agricultural training project

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(Education II, of 1972, Credit 288-IND), would enable the Agency to bettertailor the training programs of the MOA to meet Indonesia's long-term agri-cultural manpower requirements.

Risks

5.04 No unusual risks are foreseen in achieving the objectives of theproposed project since it would be essentially a follow-up to the success-fully completed first agricultural training project. The experiencedimplementation unit of the first project which would be re-established andstrengthened would implement the proposed project. Steps have been taken indesign of the proposed project to prevent a recurrence of the problems whichoccurred during implementation of the first project (i.e., cost overruns as aresult of delays in the appointment of consultant architects and in acquisi-tion of some project sites).

6. AGREEMENTS REACHED

6.01 During negotiations, the Bank and the Government agreed on:

(a) a plan for specialist services and fellowships (para. 3.17);

(b) the estimated annual allocation in the Government's FY1979-80budget for expected project expenditures (para. 4.08);

(c) the revised master equipment list (para. 4.12); and

(d) procedures for an annual audit of project expenditures (para. 4.16).

6.02 During negotiations, the Government provided assurances that itwould:

(a) cause the necessary recurrent funds to be provided when the provin-cial project agricultural development schools become fully opera-tional (para. 3.05);

(b) cause teachers of all project institutions who had no training orinsufficient training in pedagogy to complete the in-serviceteacher training course by June 30, 1985 (paras. 3.08 and 3.16);

(c) by June 30, 1980: (i) strengthen the planning and evaluation unit ofthe AAETE with qualified staff as required; (ii) prepare plans forcarrying out the manpower survey and tracer studies and have them

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reviewed by the Bank and ready for implementation; (iii) develop the

training program for project managers in consultation with the Bank;and by June 30, 1981: set up the tracer system in each operatingproject institution and complete the manpower and tracer studies(para. 3.20).

(d) finalize the acquisition of the necessary land for all proposedproject sites 30 ha for each project school and 10 ha for eachtraining center by December 31, 1979 (para. 4.11);

(e) construct or repair access roads to newly opened sites prior to

start of building construction (para. 4.11).

(f) allocate sufficient funds for the operation and maintenance ofthe training vessel in accordance with a schedule agreed with theBank (para. 4.14).

6.03 Subject to the above conditions, the proposed project constitutesa suitable basis for a Bank loan of US$42 million equivalent to the Republicof Indonesia for a term of 20 years, including a five-year grace period.

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COMPARATIVE EDUCATION INDICATORS ANNEX I

MARiCH I1, 1979

G NP/ X GNP :% TOTAL:% OF PUBLIC I :PRI. IAV.PRI. : SEC* CAPITA: DEVOTEDIPURLIC :EDUCATION :LliER- P RI. ICOMPLE- :STU- :SCH.TEACH:PROGP"S-: SEC. :STU- :HIGHER:* AT I TO EDU. I EXP. RECJRRENT lACY :ENROLLITION IDENTSISALARK IN:ION RATE IENROLLIDENTSIENRDLLI* MARKET: (PU9LI1CIDEVOTEDIEAP ALLOCATED; HATE ;RATIO :RATE FRDRPER :RELATION :F'RDM PRI. RATIO :PER :RATIO

*POP. :PRICES' EXP. : TO : TO; 1)% OR I NET :PRI.SCH. ITEACH; TO GNP/ ITO SEC. :NET :TEACH- GROSS:KR:MILLS.I (US$): ONLY) EDU. :PRI. SEC. HI.:ADULTS): (%) ICKCLE(%)IER CAPITA : (%M ( :)ER I%()

ADOVA NCED

AUSTRIA 74 7.SF 4.870F 5.3Y 8.5EY 24Y SlY 15K Sy AR 93D 26D 2.00 990 51D 190 15.85YCANADA 75 22.9 7.135 7.3 16.7 30 37 26 953 99 97 19 2.0 99 90 18 (6.00GERMANY F.REP.75 61.9 6.670 5.0 10.2 31EY 64-* 26EY 9Ri 90 99 23EY .. , 99V 84V 22C 20.26YJ APAN 75 111.6 4,450 4.3E 20.7E 4OUY 37UV 11UY 99 99D 990 25 2.08 99C 99KV 20C 24.69YNETHEREANDS 75 13.7 5,425 9.4 22.40 21 39 25 STj 95 95 29 2.0 97 s0 20 12.00NEw, ZEALAND 73 3.IF 4,280F 5.2 . .. 39 24 29 039 99 99 26 ... 99 67 19 24.00NOPWAY 76 4.0 8.043 7.2 14.4 54 24 15 '.1J 99 99 16 1.5 99E 62 IlI 11.00SA EB_EN 76 93.2 6.150 8,9 14.0 23 29 12 09j 99 99 16 ... 90? 950 13 30.OOC

L, . " .75 56.0 3.780 7,1 13.9 26 41 19 Sy 99 ... 24 2.0 ... 68 17 21.00K5.S.. 76 214.6 7,950 5.4 15.9 .. . 72=. 28 'iRE 99 99 22 .,. 99 93 19 24. 00'

EUROPE

GREECE 76 9.i 2,590 2.6 10.4 37 26 2 1 Ube 99 920 31 2.0 70E 80 27 19.00IRELAND 74 3.IF 2,.49CR 5.1 t3.90 43Y 41Y 14Y 98 109KV 99A 35 . .. 95A 65XY 19 15.47YPBTTBGAL 75 9.6 1,570 4.4 17.9 52 27 13 7o 98 55 2 1 3.0 70 29 14 7.60ROKANIA 75 21.2 1.240 4.0 8.4 36 19 13 9U 101K ... 2 1 .. 98 49 22 10.00S PA IN 74 35.3F 2475CR 2.49 15.2A 49Y 22Y 15Y 94A 115KV . .. 35A . . .. 79KV 30 17.68Y

EAF ICE

ALBERIA 77 16.9 9900 7.5 14.3FY 42 I -2 35 7RX 45 39 4.0 55 26K 13 6.00BENIN 74 3.iF 13CF 7.2N 36.01 47D 230 10D 11D 44KV 705 53K 25.08 438 11KV 398 0.74VAC%SRANA 76 0.7 410 4.0 19.2 53 20 14 3 72X 95 32 3.0 60 12 22 0.30BURU.NDI 74 3.7F 11OF 2.5 19.90 417R 419 138 113 20K 30? 39 ¶0.0 14 2K 19 1.0CAr/EROON 76 7.7 314 3.7 21.5 33 43 20 o 60 45 52 4.0 2.0 90) 24 0.9005CA.R. 74 1.8F 220F 3.00 17.00 569 19B... .79XV 25 69V . .. 18 8KV 27BV 0.21K

CHAD ~75 4.0 120 3.0 10.0 79 22 ... 15 29X9V 30 65EV 15.0 8 2X8V 30 COl1ByCC.DG(5) ~~~~74 1.3F SIOF 6.0 19.3 40 32 21I 507 133X 63 63 6.0 49 33X 22 3.40

EGTPT 76 39.2 310 5.9N1 .. 30 32 25 44 76 s0 31 .. 79 45 20 12.00E T-ICRPI A 77 29.0 100 2.4 12.5 41, 31 14 1Q 26 . .. 59 . 63 9 389 .GATON 74 0.5F 2,540F 5.05 20.60 250 90 liD .. lOOK 25C 46C 5.0 186 31Y 21C 0.29V

CAYS IA 76 0.5 170 3.3 11.5 46 25 6 10 27 90 33 ... 92 13 25GHANA 74 9.9F 590F . .. 19.7Y 43Y 22V 2oKO . 60KV 628 30Y ... 148 35XY I6CV 10,9VyGUINEA 76 4.7 ISOF 4.3N0 .. 30 31 30 . 309 64 45 12 F 86 13X 26 4.00

IVCRY COAST 76 7.0 610 6.9 23.1 33 46 13 96 50 86 43 7.0 47 17XY 28 l.64YKIENYA 78 13.8 240 5.9 26.0 67 23 10 40 90? 607 34 6.0 30 IS 27 1.0.050THO 75 1.2 160 12.05 23.0 49 Is 20 40 95 50 52 7.ON e1 10 26 1.00

LIRERLA 75 1.5 410 2.4 13.2 27 15 20 7,, 59 . 35 2.0 ... 12 26 1.10AYMADAGASCAR 74 9.8P 200F 3.2 22.1 SI 24 25 10 69K 30 63 15.0 48 9% 26 1.005A-AWI 77 5.6 140 2.2 9.3 40' 7 22 re , 56K 21 6 1 5.0 9 5K 2 1 0.47

MAX ~~~~~~75 S.7F 90F 4.2M 33.OF 45? 37F 191i 1OP 22XF .. 48F 9.5F SOP 6K 21 ../ALJRITANIA 71 1.3F 320F 4.1y 20.0Y5. . .. . 106ID 17KV ... 22A . ... 3KV 24A1/AJRITIUS 76 0.98L 690 4.7 12.1 50 26 6 SOC 94 99 24 4.5 90 45 32 1 .50MOROCCO0 76 18.2 540 8,1 15.2 399 499 13R 2ui 65X 33 40 ... 33 17K 22 4.00NIBERIA 74 75.oF 340F 4.1DV 24.2DY 23V 16Y 42K .. 49XY . .. 34DV . .. 10KV 2OCY 0.49KR,.ANDA 73 4.IF lOOp 3.2C 29.00........ 23 52 . . S5. 2 13 0.23CrSENEGAI 76 S.1 390 3.3 26.0 46 34 20 10 32 .. 49 10.0 20 10 21 1.9SIERRA LEONE 73 3.OF 200P 3.4 23.4 31 36 30 151 34X 45 32 4.0E 68 13X 21 0.53eVSOMALIA 75 3.2 110 3.79 10.80 490 160 199 501 34X 66 35 10.0 60 3 15 0.10SITDAN 76 15.9 290 4.5 19.9 49 36 16 20 34 74 33 3.8 33 14 24 1.24

56AZILAND 75 0.5 470 3.9 --- 38 31 19 50 73 71 38 3.83 51 24 22 1.00TANZANIA 76 15.1 IS0 6.6 17.4 42 21 12 (( 0 93X 81 49 6.6 6 4K 19 0.34T.N151A 73 S.6F 730F 6.3 23.4 37 43 19 55L 72 91 4 1 6.0 .31 14 2? 3.001.33506ND 75 11.6 230 3.4DV 15.70V 34EY 40EY 22EK 25A 53XY ... 34EV ... 14A GXCV 21A 0.5SYLPPER VOLTA 77 5.8 119 3.4 23.9 31 16 32 bc 13 23 5 1 24.0 19 2 25 1.0ZAIRE 76 25.6 140 6.0 22.0 49 26 25 15 66X 44 42K 2.0 41 13K 27 1.00K

Z A!B IA 76 5.1 440 6.9 15S.91 54 22 22 39j 97X 80 49 7.0 21 16 23 1.50

CENTRAL AMERICA AND THE CARIBBEAN

BARBADOS 76 0.2 1.620 9.1 22.1 43 31 16 ii 106K 99 21 2.0 99 94X 17CESTA RICA 75 2.0 960 5.25 22.79 579 256 12B tISA 109KV 658 299 3.08 598 52Kv 25Y7.S

E.RA 79 ~~~~~~~9.5 9,500 9.0 11.0........ 011~ 99 99 22 2.7 99 65 15 ¶9.00CO,TINICAN REP.72 4.7F 72CF 3.0 13.9 42 24 22 S~ 90s 17 54 3.00 63 13.5 24 7.00E_SALVADOR 75 4.0 460 3.6 23.9 61 5 22 606 65C ... 39CV . 39 13KC 21CV 4.358Y

C_A7EMALA 73 6.3P' 570r 1.9 16.0 55 23 14 47 64 26 25 3.0 69 9 25 4.09yFAITI 76 4,7 200 1.0 9.0 61 21 11 206 25F 13 56U 3.0 62 4 ... 0.7I-ONDURAS 75 2.9 3900 4.20 19.60 62G 15G isG 53 79 30 35 3.0 68 11 17 4.00.AMAICA 76 2.i 1,070 9.9 16.2 37 33 22 bGE 91 52 39 4.5 94 64 25 7.59

MEXICO 75 59.9 1.050 3.109 12.00Q 51V 26Y 12K 73 1 12KY 31 46 3.0 63 35KV 236 8.97EYNICARAGUA 74 2.3F 70OP 2.5 14.2 61 13 13 57 65 21 37 2.0 93 17 24 7.00TRINIDAD 6 T. 77 1.1 2,185 4.5 14.1 46 32 oo 9i, 98 91 30 3.0 49 62 24 ..

S0.TH AMERICA

BO-LIVIA 76 5.9 31SF 5.0 17SF........ 39 ¶7B 29D 24 SR .. . 48 190BRAZIL 75 107.0 1,030 5.0 12.4 42E 206 37E 64A 8660 . 27CKY .. . 260 15CK 6.009C-I.-E 75 10.3 990 3.9RV 12.58K 23K 1CY SOY . .. I19K .. 35Y ... . 48XY .. . 16.55YCLO.MBIA 74 23.6F 580P 3.3DY 21.20Y 440K 220K ITY 73 1055K 20 33K 4.0 90 36XV 149 6.67V....ADOR 75 7.1 590 3.70 27.7C0.. .. . bBO 102KY . .. 38C .. . . .. 39KV 14C ..

0-YANA 74 0.8F SloF 5.61N 14.79 47 35 14 833 92X 39 33 8.0 19 62X 24 1.00P<5AGUAK 74 2.6F 59CR 1.5 11.0 55 13 22 Si 52 26 30 1.9 65 17 12 5.00REAd 75 15.4 760 4.20Y 21.7Cr 400 22Y 150 72 111KV 36 390Y 3.0 70 48XV 230V 14.41Y

UA..GUAY 75 2.8 1,300 2.5 15.3 46 34 20 94, 935 . 24 ... 3 ... 10VENEZUELA ~~~73 12.0P 2,280P 4.6 19.9 300 260 359 B/A 91el . 33 2.4 .. . 33 . 26C

- 41 -

COMIPARATIVE EDUCATION INDICATORS (CDNTD) ANNEX I PAGE 2

MARCH 1, 1979

GNP/ K GNP :% TOTAL:% OF PUBLIC : 1 :PRI. :AV.PRI. : SEC:CAPITA: DEVOTED:PLU9LIC EDUCATION :LITER- PRI. ICOMPLE- :STU-- ISCH.TEACHIPROGRESS-I SEC. :STU- :HIGHIER::AT : TO EDU. : EXP.: RECURRENT lACY :ENROLLITION :DENTS:SALARY INIION RATE IENROLL:OENTS:ENROLL:

:MARKET: (PUBLIC:DEVOTED:EKP ALLOCATED: RATE :RATIO IRATE FOR:PER :RELATION :FROM PRI.:RATIO :PER :RATIO POP. :PRICES: EXP. 1 TO : TO: :(% uF : NET :PRI.SCH. ITEACH: TO; GNP/ :TO SEC. NET :TEACH- GROSS:

YR:MI LLS.: (US$): ONLY) EDU. :PRI. SEC. HI. ADULTS):() :CYCLE(%):ER CAPITA : M (%) IER I()

ASIA A~.D OCEANIA

AFGHANISTAN 77M 14.3 1600 1.8 11.6 47 19 15 12 29X 69 37 3.00 62 B1 17 1.00BANGLADESH 73 79.5$ 91$ 1.2 20.2 44Y 22Y 21Y 230 50K ... 48D ... ... 23KD 289 .CHINR)TAIWAN) 73 16.0$' 930$ 3.2 14.0 28 41 22 92 990 94 40 14.0 64 61C 26 20.OOCINDIA 75 608.1 140 2.6VY . ... ..... 299 65XY .. . 43A .. . .. . 29XY 2OAY 2.34EYINDONESIA 76 131.2 240 3.0 11.0 26 32 19 JOB 79EX 43E 30E 2.0 52E 1REX 14E 2.00IRAN 73 33.4$ 1,661$ 3.3 12.6 50B 189 126 SI 77 74A 32 5.06 BOA 24 32 4.32CYIRAQ 75 11.1 1,250 6.7C 16.3DR.... 2C 9K ... 32.. 2. 9X ... 2 35XV 26C 6.47YJCPDAN 73 2.7$ 481$ 7.0 8.8 52 18 21 59 911 76 38 9.0 64 50K 22 4.00KCREA 76 35.9 698 3.0 15.6Q 85 13 B 92$ 103X 97 50 2.6 80 84 39 14.4LEBANON 72 3.2F 1,170$ 3.5 16.0 39 40 10 68 96 65 19 2.0 63 26U 25 23.00MALAYSIA 76 12.6 660 6.7 26.0 42 34 15 610C 98 93 32 3.7 78 48 29 3.00NEPAL 76 12.6F 11OF 1.1 11.0 29 20 41 19 59 29 31 2.3 64 14 24 0.9OMlAN 72 1.8F 2,310F 1.7N 3.6 96 - - 20 24X 99 27$ 1.0 0.4X0.4K.9PAKISTAN 75 69.2 160 1.6 16.2 45 25 lB 21 47X 50 39 2.0 .. 171 lB 6.00PAPUA N.G. 75 2.9 470 5.6 16.1 38 16 24 32 577 73P 31 11.0 90 12X? 24 0.90?PHILIPPINES 74 42.3$ 380F 2.5 14.8 73 15 12 B? 104K ... 34 15.0 ... 46X .. . 21.00SINGAPORE 74 2.3$ 2,450F 2.7Y 9.2Y 39V 39$ 1 7T 75A 109KV 72A 31Y .. . 99A 446$ 24 7.6RVSYRIA 75 7.4 720 3.6 6.9 39 25 26 53 89 70 35 2.0 92 45 21 12.00THAILAND 73 41.9$ 380$ 4.0N$ 20.7$ 88 9 15 92 87K 830 32 3.0 U 910 2IE 24 2.00TURKEY 73 40.2$ 811$ 5.8CY 20.80$ ... .. ..... 685$ ... 34V .. . ... 24$ 27DY 5.83YYEMEN 73 5.9$ 211$ 0.5 4.0 45P 21P 23P 10 15K IB 36 5.0 75 2K 19 0.05EVYEMEN P.D.R. 76 1.7 280 6.6 .. 57 29 8 2u 99K 48 30 5.0 94 21X 24 0.10

SUMMARY $09 DEVELOPING COUNTRIES:

NUMBER OF COUNTRIES: 94 90 88 86 95 87 95 74 95 69 77 94 91 94

RANGE: (0.8- (3.9- (25- (5- (2- (3- (14- (13- (19- (1.9- (7- (.4- (9- (.01-12.0 ) 33.0) 96 ) 47) 41) 99) 133K) 99) 69) 25.0 ) 99) 90 ) 39) 23.0)

QUARTILESIUPPER 5.1 21.2 54 32 22 73 94 76 46 7 93 36 25 7.0MEDIAN: 3.9 16.3 45 23 19 50 76 55 36 4 63 17 23 2.3LOWER 1 3.0 12.4 38 lB 12 20 53 30 32 3 43 9 20 .9

SYMBOLS: ... DATUM UNAVAILABLE A=1970 OR BEFORE M=CURRENT PRICES SOURCES:- MAGNITUDE NIL OR NEGLIGIBLE 9=1971 N GOP----7 QUESTIONABLE 0=1972 P=INCLUDING FOREIGN AID COLUMNSI1 AND 2 WORLD BANK ATLAS

*INCLUDES PART-TIME STUDENTS 0=1973 U'CENTRAL GOVT. ONLY OR 1690 MISSIONS*.COMBINED WITH PRIMARY E=1974 K=MINISTRV 0$ EDUCATION (MOE) ONLY 3 TO 14 I8RD MISSIONS

*** UNDER REVIEW F-1975 S-MOE AND STATE COVT. ONLY AND/OR UNESCO1=1976 TEXCLUDING CENTRAL GOVT. STATISTICAL

U-PUBLIC ONLY YEARBOOKV=INCLUO1NG PRIVATE EXPENDITUREI-INCLUDING OVERAGED STUDENTSY=UNESCO SOURCES

COMPARATIVE EDUCATION DATA ARE USEFUL IN THE EVALUATION 0$ VARIOUSt EDUCATION SYSTEMS AND ANALYSIS OF RELATIVE STAGES OF EDUCATIONALDEVELOPMENT BETWEEN VARIOUS COUNTRIES. HOWEVER,oN THE BASIS OF' TTiE PRESENT DATA,CROSS-NATIONAL COMPARISON SHOULD BE APPROACHED WITHGREAT CAUTION. DATA PRESENTED IN THE ABOVE TABLE HAVE BEEN COLLECTED LARGELY BY THE BANK MISSIONS FROM GOVERNMAENT SOURCES; THEREMAINDER ARE STAFF ESTIMATES OR DATA $90O1 UNESCC. EFFORTS H-AVE DIEN MADE6 TO STANDARDIZE DEFINITIONS AND WITHIN LIMITS, TO CHECK THEACCURACY 0$ THE DATA. NEVERTHELESSESUCH OATA ARE STILL IMPERFECT IN SEVERAL RESPECTS AND THE BANK IS WORKING TO IMPROVE THEMPROGRESSIVELY ON THE OCCASION 0$ ITS OPERATIONAL 808RK. IN THL USE OF THESE DATA, THE FOLLOWING QUALIFICATIONS SHOULD BE BORNE INMIND:

(I)"EDUCATION" AS DEFINED IN THE TABLE INCLUDES ALL EDUCATIOTN AND TRAINING. FORMAL AND NON-FORMAL;(2)"PRIMARY EDUCATION REFERS TO EDUCATION AT THE FIRST LLVEL AND "SECONDARY" EDUCATION REFERS TO ALL EDUCATION AT THE SECONDARY

LEVEL REGARDLESS 0$ TAPE (E.G. GENERAL, TECHNICAL, AGSICULIURAL) I(3aPLITERACY RATES"(CDL.6) ARE OFTEN OBTAINED FROM COUNTRYT L.LNSUSES. IN MANYCOUNTRIES THEY ARE ONLY APPROXIMATIONS AND IT IS

DOUBTFUL THAT ANY UNIFORMI DEFINITION OF "LITERATE" HAS CALF. FOLLOWED CONSISTENTLY;(4)"PUBLIC EXPENDITURE IN EDUCATION`)COLS.3.4 AND 5) REFER Tu ALL CAPITAL AND RECURRENT EXPENDITURES DEVOTED TO EDUCATION BY

PUBLIC AND QUAS1-PJBLIC AGENCIES;(5SyENROLLMENT RATIOS"(COLS 7, 12 AND 14) REFER TO SCHOOL TEAR AND MEAN THE PERCENTAGE OF ELIGIBLE CHILDREN ENROLLED) FULL-TIME

EN THE APPROPRIATE SCHOOL, PUBLIC AND PRIVATE By LEVEL. TIILY ARE OFTEN SUBJECT TO A WIDE MARGIN OF ERROR IN THE DEVELOPINGCOUNTRIES OWING TO VARIATION IN THE ACCURACY OF BASIC DATA)I.E. AGE-SPECIFIC POPULATION AND ENROLLMENTS). ENROLLMENT FIGURESFREQUENTLY ARE HIGHER THAN THE NUMBER OP STUDENTS ACTUALLY IN SCHOOL. OVERAGED STUDENTS WHOSE INCLUSION IS INDICATED BYFOOTNOTES ALSO CAN INFLATE THE RATIOS.

- 42 -

ANNEX 2Page 1

INDONESIA

SECOND AGRICULTURAL TRAINING PROJECT

Project Institutions (54)

Type AssistanceLocations Administration (curriculum) proposed /c

Ac Agricultural DevelopmentSchools (SPPs) /a

l. Medan, North Sumatra National Agriculture Additions2. Padang, West Sumatra " " "3. Palembang, South Sumatra " " "4. Bogor, West Java it " "5f Yogjakarta, Yogjakarta ft

6. Malang, East Java It7. Mataram, West Nusa Tenggara t

8~ Gowa, South Sulawesi i' ft

9. Malang, East Java Animal husbandry1O. Saree, Aceh iti1. Cinagara, West Java it12. Banjar Baru, South Kalimantan Agriculture " /d13O Ambon, Maluku " " /d14. Manokwari, Irian Jaya /d15. Pakanbaru, Riau Provincial Rehabilitation /d16. Kepahiyang, Bengkulo "" /d17. Padang Mangatas, West Sumatra l /b Animal husbandry T /d18. Magelang, Central Java l /b i" /d19s Brebes, Central Java " Agriculture Relocation /d20. Samarinda, East Kalimantan i tf /d21. Manado, North Sulawesi ft ft /d22. Palu, Central Sulawesi i ft

23. Kendari, Southeast Sulawesi i tt /d24~ Aertembaga, North Sulawesi " Marine fishery25> Rappang, South Sulawesi l /b Animal husbandry /d26. Jambi, Jambi if Agriculture /d

/a Numbers 1 to 14 have been upgraded under the first phase project (Credit 288-IND).

/b Will be converted into national schools.

/c Additions involve provision of additional facilities for new courses andstudent boarding.

/d Student places would be increased at these schools.

- 43 -

ANINEX 2Page 2

Type AssistanceLocations Administration (curriculum) proposed

27. Sidoarjo, East Java National Inland fishery New SPP28. Kupang, E. Nusa Tenggara Animal husbandry s "

29. Kadipaten, West Java Forestry " i30. Samarinda, East Kalimantan t it31. Pleihari, South Kalimantan Animal husbandry " "

B. In-Service Training Centers(ISTCs) /a

1. Bandarbuat, West Sumatra National Agriculture /b Additions2. Lembang, West Java " " i3. Ungaran, Central Java if4. Saropadan, Central Java of5. Ketindan, East Java it6. Bedali, East Java of7. Denpasar, Bali f " "8. Binuang, South Kalimantan t"9. Samarinda, East Kalimantan Forestry10. Saree, Aceh Agriculture " /c11. Tanjung Morawa, North Sumatra t ft /c12. Martapura, South Sumatra " " I/c13. Pemetang Siantar, North Sumatra Forestry Rehabilitation14. Ambon, Maluku Marine fishery " /c15. Pakanbaru, Riau Forestry Relocation16. Pakanbaru, Riau Agriculture New center17. Jambi, Jambi ""18. Yogjakarta it19. Manado, North Sulawesi i f"20. Kupang, East Nusa Tenggara ""21. Pontianak, West Kalimantan " "t22. Cinagara, West Java Animal health "

C. National Agricultural TrainingInstitute (NATI)

23. Ciawi, West Java Administration & Additions /cteacher training

/a Numbers 1 to 12 and 23 have been upgraded under the first phase project(Credit 288-IND).

/b Including animal husbandry and inland fishery.

_c Student places would be increased at these centers.

INDONESIASECOND AGRICULTURAL TRAINING PROJECT

IMPLEMENTATION SCHEDULE

1978 1979 1980 1981 1982 1983 1984IMPLEMENTATION CHART _

1 2 3 4 1 2 3 4 1 2 3 4 1- 2 3 4 1 2 3 4 1 2 3 4 1 2 3-4

Project Management1. Planning of Project

Implementation Unit2. Establishment of

Office3. Appointment of Staff

Civil VViorks4. Selection of Architect

Corisultants5. Preparation of

Architects' Brief6. Appointment of

Architects7. Site Survey,Evaluation

and AcquisitionB. Preparation of Site

Development Plans9. Preparation of

Standard Sketch Plan s

10. Submission of Sketch& Site Plans to Bank 4-

11. Preparation of FinalDesign Plans

12. Preparation of WorkingDrawings, Specs/TenderDocumnents

13. Submission of TenderDocuments to Bank

14. Prequalification ofContractors

1 5. Tendering mm

16. Bid Evaluation

17. Bank Approval &Contract Award

18. Construction Period WIN a I I

19. Liability Period mil l am1

Work Accomplishment 4 4 4 7 7 7 7 7 6 6 6 5 5 5 4 4 3 2 2 2 1 lb

Expenditure (GOI) % 0 4 4 4 7 7 7 7 7 6 6 6 5 5 5 4 4 3 2 2 2 1 ii

_ I _ I I I I I I I I I I I I I I - l l l l ¢j>C

LEGEND: is phase of tendering and construction*mmmmsem2nd phase of tendering and construction World Bank - 19928

INDONESIASECOND AGRICULTURAL TRAINING PROJECT

IMPLEMENTAION SCHEDULE

1978 1979 1980 1981 1982 1983 1984IMPLEMENTATION CHART --- _

1 2 3 4 1 2 1F i 2I i 2 3 4 1 2 3 4 1 2 3 4 2 '3 4Furniture andEquiprment Procurment

20. Preparation of MasterLists

21. Submission of MasterIList to Bank I

22. Preparation of Specs &Tender Documents son IEEh I7r W,

23 Submission of TendertDocuments to Bank W..

24. Tendering *h~~25. Bid Evaluation losEEE126. Bank Approval andI

Contract Award - IiiI27. Manufacturing and

Delivery IEuE,EEJlJ28. Guarantee and I

Liability EE*mmhhgeE I1111Procurenient of Fishing Vessel

29. Preparation of Plansand Specifications

30. Preparation ofTender Documnents

31. Submission of TenderDocuments to Bank

32. Prequalifications ofBoat Builders

33. Tendering34. Bid Evaluation &

Contract Award35. Manufacture and

Delivery36. Guarantee/LiabilitY

Phase 1 (117.8% wt.) Expenditure 80% 10% 10%Phase 2 (16.8% vvt.l Expenditure 803% 10% 10%Phase 3 156% wt.I 80% 10% 10

Boat Const.ructio n (9.4 % wt.) 50%11

LEGEND: first phaseI a I I ,II Iasecond phase~rVAAI third phase World Bank -19929

INDONESIASECOND AGRICULTURAL TRAINING PROJECT

IMPLEMENTATION SCHEDULE

1978 1979 1980 1981 1982 1983 1984IMPLEMENTATION CHART _ - __

1 2 3 4 1 3]4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Technical Assistance

A. ExpertsI1. Naval Architect I s UE

2. larine Fishery3. Inland Fishery ... ...4. Forestry aaa ll ::I1 mmS. Home Improvement no's6. Ag. Teacher Trg. ones l2S I on7. Ed. Planning & Mgt. l INII*ae_ (2 experts)

B. Fellovships8. Ph.D. Program as s e ows 4:9. M.S. Program (20 fellows) I

i s"g ""||l _ _Esas1|gXl T i / ~~20 felowvs) = I2 llos t elw

C. Short Term Studies ***a,ul*u i ] ii ON (1E fellows for each group)

D. Professional InternationalSeminars and Workshops-a/

E. Project Mgt/Studies

LEGEND ImhhhIlhIE Selection or recruitment tAService or period of stay

a/ For a total of 10 man-months to be scheduled accordingly. World Bank - 19930

- 47 -

ANNEX 4Page 1

INDONESIA

SECOND AGRICULTURAL TRAINING PROJECT

Selected Documents and Data Available in the Project File

A. Selected Reports and Studies on the Sector or Subsector

1. The organizational structure and working procedure of the Ministry ofAgriculture. Decree of the Minister of AgricultureNo. 190/KPTs/ORG/5/Year 1975.

2. Reappraisal of Forestry Education and Training Needs in SelectedCountries in Asia and the Far East, FAO, 1978.

3. Indonesian Fisheries. Directorate General for Fisheries, Departmentof Agriculture, 1974.

4. Marine Fisheries Training Project, Tegal (FAO), 1976 (in Indonesian).

5. Indonesia: Country Programme Management Plan. Summary of ProjectProposals, January-December, 1978. UNDP, January 1978.

6. Draft Second Country Programme for the Republic of Indonesia - 1979-83.UNDP, January 1978.

7. Indonesia: Draft Livestock Survey Report, FAO/World Bank CooperativeProgramme, 1978.

B. Selected Reports and Studies Relating to the Project

1. Project Completion Report, Credit 288-IND. July 1978.

2. Preparation Mission Report: Agricultural Education and Training (twovolumes). FAO/IBRD CP, July 1978.

3. Trained Agricultural Manpower Requirements in Indonesia. AAETE,Ministry of Agriculture, November 1976.

4. Manual on Organization and Administration of Agricultural Educationand Training in Indonesia. AAETE, Ministry of Agriculture,September 1976.

5. Conduct of Training for Agricultural Mantris and Field ExtensionWorkers. Decree of the Minister of Agriculture.No. 342/Kpts/Um/7/1974.

- 48 -

ANNEX 4Page 2

6. Compulsory Lodging for Students of Government SPMA (Agr-czulturalSenior High School) and SNA12IA (Animal Husbandry High School).Decree of the Minister of Agriculture No. 505 Kpts/Um/9/1977.

7. Operating policy of Agricultural Education Training and Extension inthe Five Year Development III (1980-84). Ministry of Agriculture.

8. Project: The Expansion of Rural Families. AAETE, Ministry ofAgriculture, March 1978.

C. Working Papers, Tables, Drawings

1. Educational Working Papers2. Architectural Working Papers3. Some Agricultural Statistics4. Middle Level Agricultural Manpower Requirements (1980-89) and Supply5. Education Financing6. Recurrent Financing, Indonesia VIII7. Agricultural Labor Force (1979-84)

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