D_cument of

The World Bank

FlOMCIUL USE ONLY

Report No. 5861-IND

STAFF APPRAISAL REPORT

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

May 1, 1986

Projects DepartmentEast Asia and Pacific Regional Office

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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CURRENCY EQUIVALENTS

Currency Unit - Indonesian Rupiah (Rp)

US$1 = Rp 1,100

FISCAL YEAR

April 1 - March 31

SCHOOL YEAR

July 1 - June 30

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

BAPPEDA - Regional Development Planring BoardBAPPENAS - National Development Planning BoardBLK - Vocational Training Center (under the Ministry of Manpower)BNI 1946 - Bank Negara Indonesia 1946CIDA - Canadian International Development AgencyILO - International Labor OrganizationIMMIS - Indonesian Manpower Management Information SystemITDU - Industrial Training Development UnitJIVT - Joint Industrial Vocational Training SchemeKADIN - Indonesian Chamber of CommerceKLK - Rural Training CenterMEC - Min:stry of Education and CultureMOF - Min3stry of FinanceMOM - Ministry of ManpowerNPC - Nati nal Productivity CenterNVTC - Natitial Vocational Training CouncilPPF - Proje t Preparation FacilityPUSDIKLAT - Minis .ry of Manpower Central Office for Education and TrainingREPELITA - National Five-Year Development Plan (Repelita IV, 1984-89)SEKNEG - St%.e Secretariat for Procurement MattersSTM - 'enior Secondary Technical School (under the MEC)UNDP - United Nations Development Program

FOR OICUL USE ONLYINDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.

BASIC DAA......... ................................ i

LOA AND PROJECT SUHMARY... ....e*....oe........ .................. ii-iii

I. THE LABOR FORCE, EMPLOYMENT AND TRAINING . . 1Employment and Demand for Skilled Manpower ................. 1Supply of Skilled Manpower ............. .......... ....... 4Management of Education and Training .................. 6Training Costs .......... ........ ....................................... 7Issues in Manpower Planning and Training ................... 8Government Strategy ..................................... . 8Experience with Past Lending .. . . 9Rationale for Bank Involvement .. 10

II. THE PROJECT ................................................... 10Project Objectives and Scope .............................. 10Project Components ......................................... 11

Labor Market and Manpower Planning InformationSystems .... .e....................see................................. 11

Training Management and the National Training System .... 12Upgrading of Training Systems, Facilities andPrograms ....... 14

Long-term Development ...................................... 17Project Implementation and Management . . 18Monitoring and Evaluation of Project Implementation ........ 19Technical Assistance and Staff Development . . 19Status of Project Preparation .........................atio. 20Cost Estimates and Financing Plan .. 21Annual Costs ............................................... 24Procurement ........................................................... 25Disbursements .......................................................... 25Reporting and Audit .. 27Benefits and Risks ......................................... 27

III. AGREEMENTS REACHED AND RECOMM ENDATIO N . . 27

This report is based on the findings of: a preappraisal mission that visitedIndonesia in November 1984 comprising G. Hunting (mission leader), 0. Jonas(economist), J. Brown (technical educator, consultant) and C. Bayulken(editor); an appraisal mission that visited Indonesia in July 1985 comprisingG. Hunting (mission leader), A. Aime (educator), M. Godfrey (consultant), andC. Baynlken (editor); and post appraisal by G. Hunting in November 1985.

This document has a rstrted ditnbution and may be used by rcipints only in the perfonnanceof thek ofll duties. Its contents my no otherwie be disclosed without World Bank authorization.

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Page No.

TABLES IN TEXT

Table 1: Employed Persons by Industry and Projected Growthduring Repelita IV ....... 2

Table 2: Employed Persons by Occupation 1982 and Projectionsfor Repelita IV ........................................... 3

Table 3: Summary of Project Costs by Component ..................... 22

Table 4: Summary of Project Costs by Category of Expenditure ....... 23

Table 5: Financing Plan ... ....... 24

Table 6: Project Expenditure by Procurement Category................ 26

ANNEXES

1. Comparative Education Indicators 29

2. Projections of Skilled Manpower Requirements 30

3. Organization and Staffing of Ministry of ManpowerChart 1: Organization Structure of the Ministry of Manpower 31Chart 2: Organization Structure of Regional Kanpower Office 32

4. Labor Market and Manpower Planning Information SystemsTable 1: Staff Training Fellowships - 1986/87 to 1990/91 33Table 2: Schedule of Consultant Services - 1986/87 to 1990/91 34

5. Labor Market and Manpower Planning Information Systems: Schedule ofOperations and Data Collection 38

Table 1: Schedule of Operations by Nature and Region 1986/87 41

6. Training Management and the National Training SystemTable 1: Schedule of Consultant Services - 1986/87-1990/91 42Table 2: Schedule of Overseas Training Fellowships and Local

Training - 1986/87 to 1990/91 43Table 3: Senior and Middle Level Staff - 1985/86 and Projected

1990/91 44Chart 1: Joint Industrial Vocational Training Scheme 45

7. Upgrading of TrainingTable 1: Vocational Training Centers - BLK-Enrollment Targets

1985/86 by Main Skill Area 46Table 2: Schedule of Consultant Services, 1986/87 to 1990/91 47Table 3: Schedule of Fellowships and Other Training, 1986/87

to 1990/91 48

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8. Project Management 49Chart 1: Implementation Responsibilities 54Chart 2: The Project Management Office 55

9. ImplementationChart 1: Schedule of Implementation 56Table 1: Location by Province of Principal Project Activities 57Table 2: Critical Implementation Activities and Dates 58Table 3: Output Monitoring Indicators 59

10. Technical Assistance Programs -Table 1: Sunnary of Consultant Services by Component and Year 60Table 2: Summary of Staff Training Programs by

Component and Year 61Table 3: Consultant Services by Package and Year 62

11. Project CostsTable 1: Project Costs by Category and Component 63Table 2: Project Expenditure by Component and Year 64Table 3: Project-related Unit Operating Costs 65Table 4: Estimated Schedule of Disbursements 69

12. Selected Documents and Data in Project File 70

MAP IBRD No. 19401

INDONESIA

MANPOWER DEVELOPMENT AND TRAININC PROJECT

Basic Data /a

GeneralPopulation (millions) (1982) 152.6Annual growth (Z) 2.2

Labor force (millions) 57.8Participation rate (Z) 52.6

Employment by SectorAgriculture (million) 31.6 (55%)Industry and Trade, etc., (million) 19.1 (33%)Public Services (million) 7.1 (12%)GNP per capita (US$)(1983) 560

Labor force by educationlevel (1980 census) Primary & below Secondary Higher

Number (millions) 45.9 5.7 0.4Distribution (2) 88.3 10.9 0.8

Number of Vocational Education & Training Institutions, Enrollments and Output(1984)

No. of

Tpe Institutions Enrollments Output

STH (Government) (1983/84) 169 101,500 30,000STM (Private) (1983/84) 529 144,400 n.a.Polytechnics (Government) 7 3,300 700BLK (1985/86 target) 33 22,200 n.a.KLU (1985/86 target) 120 14,100 n.a.

Ministry of Manpower Budget Allocations (1985/86) TotalUS $ million

Development and routine 160Training budget (development) 48Training budget (routine) 4

/a Sources: Ministry of Manpower & Ministry of Education & Culture (unlessshown otherwise). Data are for 1982 or the 1982/83 school year unlessotherwise stated.

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INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Loan and Project Sumnary

Borrower: Republic of Indonesia

Amount: US$58.1 million equivalent

Terms: Repayable in 20 years, including 5 years of grace, at thestandard variable rate.

ProjectDescription: The proposed project would assist the Ministry of Manpower by

financing consultant services, staff training, civil works,equipment, furniture and project-related operating coststo: (a) strengthen labor market and manpower planning infor-mation systems at the national and regional levels:(b) improve the Ministry's management systems and the manage-ment capability of the Ministry's senior and middle-levelnational and regional staff; (c) establish a national voca-tional training system (including a joint training schemewith industry, and occupational standards and certification);(d) upgrade the Ministry's existing skills training facili-ties and programs in accordance with employment and indus-trial development needs; and (e) develop in selected provin-ces support for in-plant training by industry, training forself-employment and for the informal sector, and mobiletraining. The main benefits would be: (i) improved labormarket and manpower information and planning systems atnational and provincial levels; (ii) more effective manage-ment of training and establishment of a national trainingsystem, including occupational standards, skills standardsand tests and an apprenticeship system; (iii) upgrading ofbasic training and establishment of a capacity for trainingabout 20,000 people each year in key skills and occupationsat advanced levels and in specialist skills; (iv) improvedefficiency in utilization of training resources; and (v)development and improvement in key areas of in-plant indus-trial training, training for self-employment and the informalsector, and mobile training. In addition, the project wouldinclude arrangements for monitoring of training costs andoutcomes to provide the information on which to base subse-quent long-term development r1 training.

Risks

The main risk is possible delay in implementation. To lessenthis risk, detailed consideration was given to the projectmanagement, implementation and monitoring arrangements. Theproject scope and size has been limited. In addition,arrangements have been agreed for continuing the existing

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East Java regional progrma of technical assistance throughloan financing of an extension to the existing UNDP-ILOproject; this will ensure the presence of consultants fromthe outset of the project. Project activities have beendesigned in detail and preparation for implementation is welladvanced. Agreement hbs been reached on a system for closeBank monitoring, including detailed review of annual plansand budgets.

Estimated Costs:Local Foreign Total

US$ million-Labor market and manpowerplanning information systems 4.4 4.4 8.8

Training managemnt 5.7 6.7 12.4The national training system 3.1 2.2 5.3Vocational training programs (BLK) 5.8 10.8 16.6Instructor training 6.0 7.9 13.9In-plant training, supervisory training andproductivity 3.4 3.1 6.5

Training for self-employment andthe informal sector 0.7 1.2 1.9

Mobile training 0.8 1.2 2.0

Base Cost 29.9 37.5 67.4

Physical contingencies 2.4 2.5 4.9Price contingencies 7.8 10.6 18.4

Total Project Cost /a 40.1 50.6 90.7

Project Preparation Advance - 0.4 0.4

Total Financing Required 40.1 51.0 91.1

Financing Plan: Local Foreign TotalUS$ million - --

IBRD 7.1 51.0 58.1Government 33.0 33.0

Total 40.1 51.0 91.1

Estimated Disbursements: Bank FY 1987 1988 1989 1990 1991 1992 1993US$ million

Annual 1.0 2.5 10.5 13.0 13.5 11.5 6.1Cumulative 1.0 3.5 14.0 27.0 40.5 52.0 58.1

Rate of Return: not applicable

/a Includes taxes and duties of about US$3.2 million.

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

I. THE LABOR FORCE, EMPLOYMENT AND TRAINING

Employuent and Demand for Skilled Manpower

1.01 Expansion of employment opportunities and improvement in the qualityof manpower are key elements in the manpower policies of the Government ofIndonesia in its Fourth Development Plan, Repelita IV, 1984-89. The impor-tance of the employment objective was also emphasized in the recent World Bankreport: Indonesia: Policies for Growth and Employment (Report No. 5597-IND). The Government projected, for Repelita IV, that both tne labor forceand employment would increase by about 9.3 million over the period 1984-89.The increase in employment, amounting to about 2.8% F.a., was expected to beachieved with a growth in output of about 5.0% p.a.1 The agriculture sector,which accounted for 55Z of employment in 1982 was expected to provide onlyabout 30% of new employment, whereas faster growth in manufacturing output wasexpected to create up to 1.9 million new employment opportunities in thatsector. Within manufacturing, the fastest-growing subsectors were expected tobe metals and machinery and chemical processing which would have relativelyhigh requirements for skilled labor.

1.02 The most recent statistics on employment come from the 1982 laborforce survey and are presented in Table 1 along with employment projectionsprepared for Repelita IV. The figures 'B the table should be taken asindicators of orders of magnitude only -l of the increase in employmentprojected for 1984-89.

1/ Both rates of increase are higher than assumed in the most favorable basecase scenario for 1986-95 in World Bank Report No. 5597-IND, 1985.

2/ Due to the lack of reliable and timely labor market information, thereare at present (at least) three different estimates of total employmentand its distribution. BAPPENAS planning documents assumed total employ-ment of about 62 million in 1983; the Ministry of Manpower projections inTable 1 use base year employment of 55 million in 1983; but the laborforce survey data in Table 1 would result in 1983 employment of about59 million, assuming 2.8% growth since 1982.

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Table 1: EMPLOYED PERSONS BY INDUSTRY AND PROJECTEDGROWTH DURING REPELITA IV

Growth in employment, 1984-89Employment Total /b Nonagricultural /c1982 /a Formal Nonformal

million share thousand share thousand share thousand shareZ z Z Z

Agriculture 31.6 55 2,800 30 - - -Mining 0.4 1 40 * 10 1 20 *Manufacturing 6.0 10 1,900 20 400 20 1,500 30Electricity 0.1 * 30 * 20 1 10 *Construction 2.1 4 400 4 200 10 200 4Trade 8.6 15 1,900 20 100 6 1,800 40Transportation 1.8 3 400 4 100 6 200 4Finance 0.1 * 90 1 60 4 40 1Public services 7.1 12 1,800 20 800 50 1,000 20

Total 57.8 100 9,000 100 1,700 100 4,800 100

/a From the 1982 SUSENAS labor force survey; data released in September 1984.7b Unofficial estimates from the Employment and Income Distribution Strategy Project,

Ministry of Manpower, fall 1984; projections are based on 1980 census data.Ic Binagram, Ministry of Manpower, November 1984 (confidence +20Z). These projections

assume the 1980 share of formal employment in all sectors during 1984-89.

* Less than 0.5%

1.03 Self-employment and the informal sector were expected to account forabout three quarters of new employment outside agriculture and the governmentpolicy is to assist self-employment directly through training and othersupport and to assist through training those activities in the informal sectorthat require skills.

1.04 The occupational analysis of the 1982 labor force survey showedabout 11.6 million or 20% in the production category and production workersare expected to account for nearly 40% of the additional employment overRepelita IV as shown in Table 2.

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Table 2: EMPLOYED PERSONS BY OCCUPATION 1982AND PROJECTIONS FOR REPELITA IV

('000)

Growth in lbEmployment /a employment projected

Occupation 1982 Z 1984-89 Z

Professional/Technical 1,700 3 400 4Managerial 40 * 40 *Clerical 2,000 3 500 5Sales 8,300 14 1,800 20Service 2,300 4 700 8Farmers 31,600 55 2,500 28Production, etc. 11,600 20 3,500 39Other 200 * * *Not stated 10 * * *

Total 57,800 100 9,000 100

/a 1982 Susenas labor force survey data.7b Percentage distribution of employment growth based on October 1983

BAPPENAS planning papers; levels used in those papers have been adjustedto be consistent with Table 1 above.

1.05 Although workers in the production category will include a signifi-cant number of skilled and semiskilled workers there are no data on the skillcomposition of employment and there is also no generally used and understoodoccupational classification. However, using average international values forthe occupational distribution of workers within industry, projections havebeen made of the approximate numbers of additional skilled workers likely tobe in demand during Repelita IV (Annex 2, Tables I and 2). In each of thebasic industrial trades: these demands seem to be for several tens of thou-sands of skilled workers. Although expectations for the rate of growth ofindustrializatioh have been reduced, the need for skilled workers willcontinue to exceed the supply. In addition the number of existing workersneeding skills upgrading probably exceeds that of new workers if Indonesianfirms are to achieve the greater international competitiveness and betterproduct quality called for under Repelita IV.

1.06 Although it is not possible at present to obtain a precise anddetailed analysis of skilled manpower needs in Indonesia, the data reviewedabove indicate the large and urgent training needs faced by the Government.These needs include skills training for new entrants to the labor market andupgrading of skills of existing industrial workers, skills training for work-ers for overseas employment, and training for people to become productivelyself-employed or to enter the informal sector.

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Supply of Skilled Manpower

1.07 The principal sources of trained manpower for industrial skilledemployment are the vocational training centers (BLKs) of the Ministry ofManpower (MOM) and the technical secondary schools (STMs) of the Ministry ofEducation (MEC). Both provide training to only a limited skill level.

1.08 BLKs. The MOM has established 33 medium and large BLKs - 16 estab-lished with the aid of bilateral donors over the period from 1956 and 17established since 1974 with loan funds under the Fourth World Bank EducationProject (Ln. 1237-IND).

1.09 The BLKs' main programs are two to three month basic skill trainingcourses for unemployed youth. The main skill areas are: automotive, mechani-cal, construction, electrical, welding, commercial, secretarial, miscellaneousand agriculture. The minimum admission age is 18 and there is no educationalentry requirement, except for selected courses such as electronics. The BLKsare not involved in the selection of trainees and are not responsible forplacement of graduates-in employment: consequently the BLKs do not have closelinks with industry. There is no nationally recognized standard of skillstraining -.nd although occupational standards have been designed, they are notin generel use. Also, there is no system of skills testing and certificationand no national system of apprenticeship involving joint training withemployers.

1.10 The 33 medium and large BLKs have a training capacity of about 8,600places, equivalent at present to about 25,000 trainees each year on threemonth courses with single shift working. Enrollment targets for 1985/86 areshown in Annex 7, Table 1. The MOM has also established about 60 small, ruraltraining centers (KLK) - part of a target of 120 small centers which willprovide training related to rural occupations, including agriculture. Thesesmall centers, now being brought into use with equipment procured under exportcredit agreements, will have a total training capacity of about 10,000 placesby 1986/87, equivalent to about 35,000 trainees per year.

1.11 The MOM also provides a relatively large program of mobile training- with numbers of trainees reported to be much greater than those in thecenters. The 1985/86 target for trainees in mobile units is about 75,000.Mobile training has not been formally evaluated but from observation duringrecent visits to training centers it is clear that many mobile units are nolonger in working order. The most successful forms of mobile training appearto be: in the urban setting, training in firms undertaken by BLK staff withequipment provided from the BLKs; and in the rural areas, training in hiredaccommodation, using equipment mainly supplied locally, supplemented by equip-ment from the BLK, for trainees from a group of villages.

1.12 The 17 centers established under Ln. 1237-IND are reasonably wellequipped but recent visits have shown that the equipment does not have a highutilization rate. Some of the older centers have received new equipment underthe export-credit financing but the more advanced items of equipment appearnot yet to be in use and some are not relevant to local needs. The majorproblem for the centers is the lack of skills and experience of instructors.

During Repelita IV MOM aims to train 650,000 persons. This would require some5,400 instructors in comparison with the present 1,800 instructors including400 senior instructors. Most of the experienced senior instructors have beenpromoted to be principals of the new KLKs. Recently recruited staff aremainly STM graduates with only 6 to 12 months training and no industrialexperience. Since salary levels are not high enough to attract a large numberof experienced skilled workers from industry to become instructors it will benecessary for the MOM to continue the less satisfactory approach of recruitingsecondary technical school graduates as instructors, and to provide them withadequate skills, iiLaructor training and industrial experience. Anotherserious problem is the low efficiency of utilization of resources. Most ofthe centers appear to run only two three month courses each year. At the timeof appraisal, the overall efficiency in utilization of accommodation in thesample of BLKs visited was estimated to be less than 25%; the project isexpected to raise this figure to 75%. The low utilization was attributedpartly to the failure of the Regional Office to recruit trainees and partly tothe lack of training materials which had still not been procured three monthsafter the development budget authorization.

1.13 A survey of a sample of firms in July 1984 showed that the shortbasic training courses of the BLK are not relevant to indusrrial needs:relatively few employers had any knowledge of the centers and none regardedthe centers as a satisfactory source of skilled workers. However, a recenttracer study of BLK graduates has shown that they are doing better in thelabor market than similar young people who did not go to a BLK, although inabsolute terms the job record is not good. In the BLKs studied, the trainingwas 37ore effective for high school graduates and for trainees aged 19 to2.2- The findings from these surveys point to the need, and justification,for upgrading the centers, developing relevant and longer training, recruitingand training an adequate number of instructors and establishing close linksbetween the centers and industry.

1.14 Secondary Technical Schools. The secondary schools provide three-year courses at junior level, which are gradually being phased out, and three-or four-year courses at senior level. The senior secondary technical schoolcurriculum includes about 40% practical skills training. There was an enroll-ment of about 100,000 in public STMs in 1983/84 and an annual output (1983) ofabout 30,000 in the five broad areas of mechanical, electrical, electronics,automobile and building trades. The First and Fourth Bank Education projectsincluded the establishment of central workshop facilities to upgrade thetraining provided by STMs. In recent years the Asian Development Bank and theNetherlands Government have provided assistance for the expansion of the STHsystem. There is no comparative data on the performance of STM and BLK grad-uates in the labor market, however the survey of firms in July 1984 indicatedthat employers regard STM graduates as well educated and trainable and inthose firms for which there was data on workers' backgrounds the majority ofskilled workers were STM graduates.

3/ David Clark, Tracer Study of BLK Graduates, MOM Report, June 1985.

1.15 Training in Industry. The Government of Indonesia in Repelita IVplaces a large and increased responsibility on industry for provision oftraining, both for its own immediate needs for skilled manpower and for train-ing people who will subsequently enter the informal sector or establish them-selves in self-employment. The Government proposes that industry and privateinstitutions train 3.8 million people over the 5-year period. However, asurvey of industry conducted by Bank and MOM staff in July 19f4, indicatedthat there is relatively little struct red in-plant training.-' The generalpractice appears to be to recruit unskilled persons and allow them to "learnon the job" by observation -- a very inefficient and ineffective method ofdeveloping a skilled labor force. From discussions with a wide range ofindustries it appears that industry is willing to increase its participationin training but in order for it to do sO it needs assistance to plan,establish and implement training.

Management of Education and Training

1.16 Presidential Decree No. 34 of 1972 assigps overall authority foreducation and training, including technical education, to the MEC. Opera-tional responsibility for education and training is shared between the MEC-which is responsible for general and vocational education, MOM, which isresponsible for specialized and vocational training and the National Instituteof Public Administration, which is responsible for staff training in conjunc-tion with the Central Offices for Education and Training (PUSDIKLATs) in eachministry.

1.17 The Role of the MOM. The MOM has two Directorates General. TheDirectorate General of Manpower Development and Placement is responsible fornational manpower planning and for the support and coordination of manpowerplanning by other government departments. This Directorate General is alsoresponsible for vocational training to meet industrial employment needs, thecoordination of training provided by the private sector, the development andimplementation of employment policies and guidance and placement services.The Directorate General of Industrial Relations, and Development and Super-vision of Working Conditions is responsible for all aspects of industrialrelations, and for industrial safety and health. The structure of MOM isshown in Annex 3, Chart 1. The MOM has a Regional Manpower Office in eachprovince and district offices in each district (Annex 3, Chart 2). TheNational and Regional Productivity Centers provide labor productivity andsupervisory training and act as advisers within the MOM and in industry. Thepresent training operations of the MOM are la;'ely centralized, e.g., enroll-ment targets, training curricula, staffing and fi'ancing are determinednationally by the central office. The regional offices are responsible forrecruitment and selection of trainees and the training centers have relativelylittle responsibility.

4/ "Industrial Training: Report on the Findings of the July 1984 IndustrialSurvey," September 1984.

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1.18 MOM suffers from several problems. First, it lacks a comprehensiveinformation system to enable it to carry out labor market and manpower plan-ning. Second, it has insufficient qualified staff at both the central andregional levels. Finally, the organization of the MOM requires a clear allo-cation of staff responsibilities, particularly for the implementation ofdevelopment activities. PUSDIKLAT also suffers from a shortage of qualifiedstaff and resources.

1.19 Coordination of Vocational Training. The Minister of Manpower hasrecently established a National Training Council to advise him on trainingpolicy, to assist ir planning, coordination and implementation of training andto approve national skill standards. Its work is at an early stage: threesubcomittees, serviced by Ministry staff on a part-time basis, are assemblinginformation on the existing training system, standardization and certificationof training. A Regional Training Council is being established in Surabaya, asa pilot project with ILO-UNDP support, to act as a forum between the MOM,other government departments and local industry to provide advice on trainingand to support coordination and development of training in the region.

1.20 Manpower Planning. Manpower planning in the current five-yeardevelopment plan, Repelita IV, comprises forecasts of employment and occupa-tion based on estimates of output growth by sector. The MOM carries outannual surveys by region of a sample of industrial enterprises -- coveringemployment, wages and training but little use appears to have been made of theresults in the planning of training.

Training Costs

1.21 There is very little detailed information available on trainingcosts in Indonesia and it is difficult to identify and attribute actualcapital and current expenditure to training activities. However, on the basisof budget allocations and training targets, the training provided by the BLKsappears to be inexpensive. For 1985/86, the total development budget for the33 larger BLKs was Rp 10,500 million and the number of trainees about 80,000(including those in mobile training), thus implying a unit allocation of onlyRp 130,000 for a 3-month program. The routine budget allocation per traineeis approximately Rp 15,000 -- giving a total allocation of Rp 145,000 for 3months training. Of this total about Rp 36,000 (25%) represents staffsalaries and allowances and Rp 90,000 (60%) represents materials and otherexpenditure. The actual expenditure probably varies considerably betweencourses but overall expenditure could be raised in order to improve quality oftraining while still maintaining relatively low training costs. Informationis also lacking on the costs of training in industry. Only a small proportionof firms appear to have training budgets, and those budgets cannot easily berelated to training outputs. The Labor market and manpower planning componentof the project would address the issue of monitoring training costs andrelating costs to outputs to provide a basis for future policy development.

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Issues in Manpower Planning and Training

1.22 Recognizing the importance of improving both productivity of indus-try and employment prospects, there is an urgent need to strengthen the capa-city of the MOM to establish appropriate training policies and systems and tolead and coordinate manpower development and training in the public and pri-vate sectors. The issues facing the MOM can be classified as follows. Firstthere are weaknesses in the manpower planning and training management systems,for example, the National Vocational Training Council needs to be brought intoeffective operation and similar representative bodies established at theprovincial level; staff expertise should be strengthened and effective man-power and training management information systems developed. Coordinationneeds to be strengthened between the MOM, other ministries and the privatesector. Second, there is no national system for training, e.g., little use ismade of the standard classification of occupations, there is an absence ofnational training standards and little skills testing; there is no formal'apprenticeship' system in the sense of coordinated programs of training toagreed standards involving both off-the-job and in-plant training. Third,there is need for upgrading and improving the relevance of skills training,for example, there is very little specialist and advanced skills training,very little skills upgrading in conjunction with employment needs, and a lackof supervisory training. Training other than institutional training isimportant, particularly in-plant training, mobile training and training forself-employment. There is an urgent need to develop MON's capacity to supportthe expansion of these forms of training and, through carefully monitoredsmall-scale projects, to assemble data about methods, outcomes and costs toprovide the basis for long-term policies and programs while improving theirquality and appropriateness.

Government Strategy

1.23 Government objectives under Repelita IV include the expansion oftechnical education and vocational training in order to supply skilled man-power to support Indonesia's policies of industrialization and increasingexports and to enlarge employment opportunities. The Government's target forpublic and private STMs during Repelita IV is to double enrollment, from about250,000 in 1983184 to about 500,000 in 1988/89. The target for MOM is also todouble training in its centers (BLK and RLK) and mobile training, from about80,000 in 1983/84 to about 170,000 trainees in 1988/89. Quality of trainingis to be improved and its relevance to industrial need increased. The MOM isproviding for expansion of training capacity by the construction and equippingof the 120 smaller centers, KLKs (para. 1.10). It is now giving attention tothe development of more advanced and specialist training; to more efficientuse of training resources both in centers and in mobile training and toincrease participation of industry in training. It is also introducingtraining for self-employment and has recently entered into agreement with BankNegara Indonesia (BNI) 1946 to provide loans to successful BLR graduates forapproved investment proposals. In accordance with Repelita IV objectives theMOM has drafted a Training Act which it is discussing with other governmentdepartments and which would provide a satisfactory legal framework to enableit to increase the participation of industry in training, introduce chargesfor training and other means of cost sharing and establish skills standards

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and certification. The provisions of the draft act are satisfactory. The MOMis seeking Bank assistance for the development and implementation of thisstrategy.

1.24 The MOM is currently receiving assistance under a number of separateand relatively small programs of technical assistance. Two UNDP-ILO pro-jects: the Indonesia Manpower Management and Information System (IMMIS) Pro-ject and the Employment Creation Strategy Project are strengthening the MOM'scapability in two specific aspects related to manpower planning. AnotherUNDP-ILO technical assistance project is helping the MOM to develop theSurabaya BLK as a model regional center. Activities at the Surabaya Centerinclude: (a) strengthening collaboration between the BLK and industry;(b) establishing upgraded and advanced training modules; (c) developing in-plant training; and (d) setting up pilot skills-testing facilities. ACanadian-assisted (CIDA) project to establish a BLK in Samarinda is nearingcompletion. A Japanese-aided (Japanese International Cooperation Agency)Instructor Training Center has just opened in Jakarta.

Experience with Past Lending

1.25 The Bank's support of Indonesia's strategy for the development oftechnical manpower and industrial skills development has been the focus ofseveral education and training projects. Credit 219-IND supported the esta-blishment of five centralized training workshops for practical training forstudents from nearby secondary technical schools. Loan 1237-IND supporteddevelopment of additional centralized workshops as well as the establishmentof the 17 vocational training centers for the MOM. Credit 869-IND and Loan2290-IND support the establishment of a polytechnic system to trainengineering technicians. Loan 2258-IND is assisting in the upgrading ofmanpower in the Ministry of Public Works. University development is beingsupported by two loans (1904-IND and 2547-IND), and high-level scientific andtechnological manpower by the Science and Technology Training Project (Loan2599-IND). Support for the sector also includes agricultural training, non-formal educqtion, teacher trai .ng, textbook development and secondaryeducation.

1.26 An OED Project Performance Audit Report prepared for Credit 219-IND(No. 2998, dated June 2, 1980, SecM80-440) stresses the importance of:including fellowships for development of teachers and school administrators;and appointing key staff for project implementation in a timely manner. TheProject Completion Report on Loan 1237 (May 3' 1985) indicates as the mainlessons: (a) the need to provide adequate technical assistance for bothproject planning and implementation; (b) the importance of the timely appoint-ment of PIU personnel and training of a sufficient number of staff; (c) theneed to monitor training outcomes and to give due regard to the quality ofskills training; and (d) the importance of effective coordination of projectactivities and implementation. The outcome of that project is a system ofwell-equipped training centers, but the centers lack well-trained andexperienced staff and their present training is focussed on short basictraining programs for unemployed youth, thus failing to meet other importanttraining needs.

1.27 Implementation performance of projects in the Education sector inIndonesia has recently deteriorated. Two important factors identified as

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contributing to poor implementation, particularly in the Ministry ofEducation, are (a) project managers are not comitted full-time on projectimplementation but instead engage in multiple other activities, includingteaching and research, and (b) the lack of effective support and monitoring ofimplementation at the Ministry level. These findings, and the lessons drawnfrom completed projects, have been taken into account in the design of theproject, including the establishment and full-time staffing of a ProjectManagement Office, detailed preparation in advance of negotiations, andadvance commitment of staff for implementation.

Rationale for Bank Involvement

1.28 The expansion of employment opportunities and improvement in thequality of manpower are key elements in the Government's manpower and indus-trial policies. Growth in manufacturing output, and in the informal sectorare expected to account for most of the new employment. In addition to theneed for training for the nearly 2 million new entrants to the labor marketeach year there will be a considerable need for upgrading the skills ofexisting workers to enable Indonesian industry to achieve better competitive-ness. The Government is faced with a variety of training needs: in additionto the upgrading of its existing training resources it needs assistance todevelop new cost-effective means of training and to expand training byindustry. The MOM is therefore seeking assistance for a major program inupgrading of skills training and planning and management including improvedefficiency in use of its resources and increased participation of industry intraining. The proposed project would build on the Fourth Education Project,Loan 1237-IND, under which new training centers were established. It wouldaddress, in a comprehensive manner, the main issues in manpower planning andtraining, including those relating to management and institution building, andto the development of training relevant to employment needs. It would inte-grate and expand existing pilot projects.

1.29 An advance of US$383,000 under the Project Preparation Facility(PPF), financed technical assistance for project planning. Throughout projectpreparation and appraisal close attention has been given to the determinationof priorities and to the implementation capacity of the MOM in order to keepthe scope of the project within manageable bounds and avoid the implementationproblems encountered under Loan 1237-IND and other projects. The projectdesign gives particular emphasis to: (a) the coordination of implementationaction and budgets; (b) full-time staffing of the project management office;(c) the timely provision of technical assistance throughout implementation;(d) the commitment by the MOM of appropriate staff resources to implement theproject; and (e) close monitoring by the MOM and the Bank.

II. THE PROJECT

Project Objectives and Scope

2.01 The project, which would constitute the first phase of a long termdevelopment program, would focus on institutional development, the formulationand implementation of new policies for manpower development and training bythe MOM and the upgrading of MOM's management and training systems. It would

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contribute to expansion of employment by improving the competitiveness andproductivity of industry through improved skills of industrial manpower and byproviding training and other support for self-employment and the informal sec-tor. The project components would essentially strengthen and improve existingstructures. The proposed project would assist the MOM by financing consultantservices, staff training, civil works, equipment, furniture and project-related *perating costs to:

(a) strengthen labor market and manpower planning information systems atthe national and regional levels;

(b) improve the MOM's training management systems and the managementcapability of the MOM's senior and middle-level national andregional staff;

(c) establish national and regional vocational training systems(including regional training councils, a joint industrial vocationaltraining system and occupational standards and certification);

(d) upgrade the MOM's skills training facilities and programs in theexisting 33 medium and large vocational training centers inaccordance with employment and industrial development needs; and

(e) develop in selected provinces support for improved in-plant trainingby industry, training and other support for self-employment and forthe informal sector, and mobile training.

Project Components

A. Labor Market and Manpower Planning Information Systems(US$8.8 million excluding contingencies)

2.02 Upgrading of Planning and Information Systems. The labor market andmanpower planning information systems initiated under the ILO's IMMIS project(para. 1.24). would be strengthened and improved, particularly at the regionallevel, to provide efficient collection, analysis, dissemination and use oflabor market, employment and training data. The systems would assist centraland regional government to plan and implement manpower, employment andtraining policies and programs, assist employers to recruit and develop a moreefficient labor force and provide individuals with better information abouttraining opportunities and so improve their access to more fruitfulemployment.

2.03 The organization for manpower planning would be improved, initiallyby a better definition and coordination of functions and subsequently byappropriate reorganiz-tion. The MOM's capacity to support and coordinate man-power planning with other government departments would also be strengthened.Provincial development would be phased and by the end of the project cover allprovinces.

2.04 In support of these objectives, training for staff of the MOM wouldbe provided through 60 man-years of fellowships for postgraduate trainingoverseas in labor economics and manpower planning and about 300 man-years oflocal training, of which about 60 man-years would be in Long courses and the

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remainder in short courses in specialist techniques, arranged by PUSDIKLATwith consultant assistance. The capacity for continued in-service trainings3uld be strengthened by the provision of three man-years of local training intraining methodology for selected manpower-planning s .aff. About 100 man-years of local training would also be provided for manpower planning staff ofother government departments (Annex 4, Table 1). Ten man-years of bothinternational and domestic consultant services would be provided to assistwith the design and implementation of the systems and the training of staff(Annex 4, Table 2). Computing facilities and software would be provided inthe regions to complement the system established in the MOM under the IMMISproject. The specifications of the system and cost estimates have beenprepared with the assistance of consultants.

2.05 Labor Market Information and Planning Operations. The operations ofthe MOM's directorates of program development and manpower supply andplacement and the regional manpower departments would increase considerably asthe manpower planning and labor market information systems are established andexpanded. The project would provide the related operating costs, includingthe h-iring and training of survey staff, the expenses of conducting surveysincluding the design and printing of survey instruments, staff travel and sub-sistence, analysis of results, printing and publication of data, disseminationof labor market information and follow-up and monitoring of outcomes oftraining programs. Operations would include labor market studies in keyfields, e.g., employment in the informal sector, employment of women,retraining, youth training and employment. Pilot training projects underother components would be monitored.

2.06 Importanc outcomes of this work would be improved preparation andimplementation of manpower policies and programs for Repelita V and reliablecomparative data on training costs and outcomes. The program has been plannedin detail for the first year and in outline for subsequent years (Annex 5).Progress will be reviewed each year and the annual program and budget agreedin advance with the Bank.

B. Training Management and the National Training System(USS17.7 million excluding contingencies)

2.07 This component would include (a) strengthening of the management oftraining and related staff development; (b) establishment of a national train-ing system; and (c) establishmenc of occupational and skills standards andskills testing.

2.08 (a) Strengthening of the Management of Training. Management of trainingby the MOM would be improved by rationalization of organization and the intro-duction of improved systems particularly for key functionaL areas of planning,development of training programs, allocation of resources, and monitoring ofoutcomes. The project would provide training for new staff and upgrading ofexisting staff in general and specialist management techniques and in produc-tivity. The staff training program would be administered by PUSDIKLAT.PUSDIKLAT itself would be strengthened by an increase in staffing, from 69 to132 by 1990/91, and by staff training and consultant assistance for the designand implementation of the staff training program. Computing and other equip-ment would be provided for the MOM's central and regional offices and forPUSDIKLAT. The efficiency of utilization of the BLK accommodation and

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training equipment would be improved through the services of experiencedfacilities planners and managers who would develop and implement a system forrationalization and imoroved utilization. Consultant services would also beprovided to support the Project Management Office and to assist the planningof future development.

2.09 The project would finance about 15 man-years of international and 17man-years of domestic consultant services to assist in the upgrading of themanagement systems and the related in-service training of staft (Annex 6,Table l). About 120 man-years of fellowships would be provided for overseastraining and 80 man-years for local management training (Annex 6, Table 2).Schedules of consultant services and training were agreed during appraisal.

2.10 Staff development will be a critical factor in the project'ssuccessful implementation. Some 5,000 additional staff have been recruitedduring 1985/86. About 400 additionaL senior and middle level staff areexpected to be appointed by 1990/91 in the MOM's main office and 11,000 in theregional offices (Annex 6, Table 3). Satisfactory institutional and staffdevelopment plans for the project period and covering all project activitieshave been prepared for the key organizational units involved in the project.The plans will need to be revised annually, as part of the budget process, tomatch changing needs as the organizational structure changes and staffperformance is improved. At negotiations the Government provided an assurancethat annual staff development plans will be prepared, in consultation with theBank, for the key organizationaL units for all project activities, and that itwill appoint staff and counterparts in accordance with such plans.

2.11 (b) Establishment of a National Training System. The project wouldstrengthen the National Training Council's capacity to formulate policyadvice and prepare and monitor manpower developm2nt and training plans,through the establishment and training of a small full-time administrative andtechnical secretariat. Based on the experience gained through the pilotproject at Surabaya, Regional Training Councils would h- established in allother provinces in stages by the end of the project. The project wouldprovide 60 man-months of fellowships for overseas study visits by staff andCouncil members.

2.12 The present unstructured apprenticeship system would be extended bya Joint Industrial Vocational Training (JIVT) scheme designed, established andadministered jointly by the MOM and industry. Training would normaLly extendover a one to two year period and involve training off the job as well as inindustry (Annex 6, Chart 1). The scheme would be flexible and incorporateadvanced and specialist skills modules suitable for upgrading workers inindustry. The system would be established for priority skilled occupations inthe following subsectors of manufacturing industry: metal and related manu-facturing, textiles, timber and wood processing and agricultural product pro-cessing and for the construction industry. Preparations would be completedfor the extension of the scheme to other industrial subsectors and occupatlinsin a later phase. The project would finance the cost of 24 man-months ofinternational and 30 man-months of domestic consultants and 60 man-months offellowships for overseas staff training. The project would also cover theproject-related operating costs of the scheme.

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2.13 (c) Establishment of Occupational and Skills Standards and SkillsTesting. The existing occupational standards would be reviewed, revised andexpanded. The revisions would be coordinated with the international reviewcurrently underway, by ILO, of the International Standard Classification ofOccupations (ISCO). Skills standards would be established in the selectedpriority industrial sectors for key occupations. Skills tests would bedesigned and implemented and a certification scheme set up.

2.14 Test facilities would be established in BLKs in at least four pilotareas in phases. The facilities would be available to workers in industry andto STM students as well as to BLK trainees. The project would finance 90 man-months each of international and domestic consultants to assist with thedesign and implementation of standards and tests and the establishment of thetest facilities, 10 man-years of local training, adaptation of buildings atthe selected BLKs to house the facilities and provision of equipment andoperating costs. By the completion of the project, a satisfactory testingsystem will have been developed for introduction nationally.

C. Upgrading of Training S"stems, Facilities and Programs(US$40.9 million, excluding contingencies)

2.15 Vocational Training Programs (BLK). To upgrade the quality oftraining, advanced and specialist skills and skills upgrading programs wouldbe developed in about 30 of the larger BLKs. Training programs would bedeveloped on a modular basis at three levels: basic, advanced and specialistfor key occupations in the metals and related manufacturing industry,electronics, textiles, wood processing, agricultural product processing andconstruction industries. The specialist and advanced skills would be relatedto the needs of industry in the region in which the BLK is located. By theend of the project about 20,000 trainees are expected to be enrolled anuallyin a 6-month or longer advanced or specialist skills module. Development oftraining modules started by the ILO team at Surabaya would be continued withimplementation extended to other regions in a carefully monitored and phasedprogram. The project would finance a limited amount of building adaptation toexisting centers to house specialist facilities. No new centers would beconstructed. The aim is to increase efficiency of utilization of buildingsfrom the present low values (25X) to a level of about 75Z with double shiftoperation. Supplementary equipment would be provided for existing centers toreplace obsolete equipment and to enable the development of advanced andspecialist training. Procurement of equipment would proceed in stages inaccordance with the program of rationalization and efficient utilization ofphysical facilities (para. 2.08).

2.16 The project would provide 30 man-years each of international anddomestic consultant services. The consultants would assist with the analysisof training needs, and with the design, implementation and monitoring of therevised training modules. They would also contribute in the development ofrelated training materials and in-service training of staff (Annex 7,Table 2). Project-related operating costs for the development of training,convening of industri6l advisory panels, honoraria for specialists, printing,etc., would also be included in the project.

2.17 Instructor Training. The project would establish four regionalinstructor training facilities in existing BLKs in Medan, Singasori, UjungPandang and Samarinda and upgrade existing instructor facilities in six other

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BLKs. Each new facility would have a capacity of about 100 places and eachwould require 10-15 well-trained staff Training programs of 24 months wouldbe developed for new instructors, including 6 months training in industry.Short upgrading courses rwould be developed for existing staff. The instru-.tortraining would be integrated with the training provided at the Japaneseassisted center (para. 1.24). The project would finance building adaptationand equipment for the new centers. Eight man-years each of international anddomestic consultant services would be provided to assist with the design andimplementation of the instructor training programs. Fifteen man-years ofoverseas fellowships would be provided for training of instructor trainingstaff. The project would also fund incentive schemes, on a pilot basis, toattract well-qualified staff from industry as part-;tie instructors.

2.18 In order to ensure that instructors gain the required width ofexperience, fellowships for training overseas would be provided for about 52of the planned total staff of the 33 larger BLKs and senior staff of thesmaller centers, that is about 200 man-years of fellowships for about 100instructors and senior instructors in programs of training and industrialexperience of six months to three years duration. Criteria for selectionwould include satisfactory completion of preliminary language training forwhich 120 man-years of local fellowships would be included in the project.Some 2,000 man-years of upgraded local training would be provided for BLKinstructors (Annex 7, Table 3). Tracer studies and evaluation of theinstructor training programs would be included under the project.

2.19 Upgrading of In-plant Training and Supervisory and ProductivityTraining. The project would establish an organization and system to supportin-plant training through the setting up of Industrial Training DevelopmentUnits (ITDUs) on an experimental basis in at least six provinces to helpindustry plan and carry out in-plant training. The objectives would bethreefold: (a) to increase capacity for training workers in industry; (b) toimprove training skills of firms' industrial training officers andsupervisors; and (c) to train the MOM's Training Development Officers to staffthe ITBUs, by developing their capacity for guidance and support for moreeffective in-plant training. The units would require 4-6 well-skilled andexperienced staff in order to be effective and to gain acceptance byindustry. The project would make an impact on training by upgrading theskills of several thousand workers in key industries but its main objectivewould be the design, implementation and monitoring of outcomes and costs ofin-plant training as a basis for planning long-term development of thesystem. The ITDUs would serve as direct links between industry and BLKs.Training projects would be supported in selected priority industries,including metalworking and machinery, electronics, wood and wood processing,textiles and other export industries. Assistance would also be provided forthe BLKs in cooperation with Regional Productivity Centers and ITDUs in atleast five provinces to design and establish part-time and full-timesupervisory and productivity training and re1ated consultancy services.

2.20 The project would provide 19 man-years of international and 21 man-years of domestic consultant services to implement the scheme includingadvising selected firms on training needs analysis, planning and implementingtraining. To support the on-the-job training of training officers and therelated training of ITDU and productivity center staff there would be 20 man-years of overseas training and assignments. Training equipment would be

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supplied to the selected training centers for temporary use in the firms. Theproject would also provide part of the other direct costs of training and con-sultancy services, excluding salaries of trainees, for example: trainingmaterials, honoraria for training staff, travel. Costs and outcomes would bemonitored and arrangements introduced to recover from industry part of thecosts of providing the services of the ITDUs and productivity centers.

2.21 Training for Self-Employment and the InformaL Sector. The main aimof this component would be to assist the development of self employmentincluding improvement of the system of training for seLf-employment, entre-preneurship and management. The project would review the existing training inthese fields (including evaluation of outcomes) in university faculties ofeconomics, private business and management schools, and similar schemes inother countries, to learn the lessons of past experience. The project wouldupgrade the training and consultancy capacity of the productivity centers andBLKs, which would be responsible for the new system, in at least tenprovinces. Programs would assist trainees to prepare investment proposals forfinancing by BNI 1946 and would be based on pilot courses already introducedin a few regions. Emphasis would be given to the processing of agriculturalcommodities. The project would also organize a series of seminars, involvingthe Productivity Centers, the Indonesian Chambers of Commerce and Industry(KADIN), university economic faculties, the MAC, private business andmanagement schools, etc., in order to share experience for the production oftraining materials and consultancy services for self-employment. The projectwould be coordinated with the existing and other planned activities of asimilar nature, including the proposed UNDP/ILO project on training youth forself-employment, the small industries program of the Ministry of Industry andrelated activities of nongovernment agencies.

2.22 The project would also assist in the development of the informalsector including programs in relevant skills training, in conjunction with,and drawing on the experience of the Department of SmalL Industry of theMinistry of Industry and of KADIN. Activities to be covered would be thosefor which the resources of industry and of the training centers could becombined to develop relevant training, to the mutual benefit of both smallinformal industry and larger firms, such as installation, repair and mainten-ance of all types of small-scale domestic and industrial equipment includingvehicles, home appliances and radios, or service activities such as retailing,distribution, transport, as well as construction and repair of buildings andbuilding installations.

2.23 The project would provide 5 man-years of international and 8 man-years of domestic consultant services, 36 man-months of fellowships for over-seas study visits and training, a limited amount of equipment and materialsand related operating costs.

2.24 Mobile Training. The project would upgrade existing mobile trainingprograms to cover industrial training in selected occupations in urban andrural areas in at least eight provinces. Mobile training carried out underthe project would represent only a small proportion of the mobile trainingactivities of the MOM. The project's main objective would be to review,improve and test the design, implementation and monitoring of a series ofmobile training programs using different delivery methods so that the outcomesand findings could be used as a basis for the planning of long-terminvestment.

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2.25 Mobile training in rural areas would concentrate on teaching skillsneeded to support local industry and to making and selling products such asagricultural and fishery products, aimed at the ezport market. Help wouldalso be given to trainees in rural communities to combine these job skillsinto rural businesses or cooperatives. In urban areas, arrangements wouldinclude the use of industrial facilities and rented accommodation, withsupplementary equipment and training materials provided by the BLK. Inaddition to the mobile training operating from the BLKs, the project wouldseek to develop an "open" training scheme whereby packages of trainingmaterials adapted to local needs would be developed and distributed toselected rural and urban areas where local people with appropriate skillswould act as tutors under the supervision of BLK staff.

2.26 The project would provide six man-years of international and eightman-years of domestic consultant services to assist in the development ofimproved mobile training programs in urban and rural areas, includingmaterials development, instructor training and equipment specifications and inimplementation, monitoring and evaluation of the programs. The project wouldalso finance 36 man-months of fellowships for overseas study visits andtraining, supplementary equipment for use in the 8 centers and the operatingcosts.

Long-term Development

2.27 The project would provide the institutional and staff developmentwhich would be critical for the long-term expansion of traini g related toemployment needs. The management capability of the MOM would be improved,particularly for the planning and development of training, the allocation andefficient utilization of resources and the monitoring of outcomes. Therewould be little addition to the MOM's physical training facilities but theutilization of those resources would be improved significantly and the train-ing would be upgraded in line with the needs of industry. In the longer termthe MOM's training capacity is expected to be increased and it will be equallyimportant to increase the participation of industry in the provision of train-ing, to provide training for the large informal sector and to train greaternumbers through mobile and other noninstitutional methods. This project wouldestablish systems, effective training programs and methods for in-plant, in-formal sector and mobile training, but in only a limited selection of pro-vinces and occupations. The expansion of training would be provided underlater ohases of development based on the experience and findings of thisinitial project.

2.28 Evaluation of training outputs and relationship with costs, particu-larly the ccnduct of tracer studie3 of trainees and the assembly of compara-tive data on cost and training effectiveness would therefore be an importantpart of project implementation. This would be carried out through operationsunder the labor market and manpower information and planning component in con-junction with monitoring and evaluation by the directorates and centraloffices of the Directorate General of Manpower Development and Placement andcoordinated by the monitoring and evaluation staff in the Project ManagementOffice. The project will also address the issue of recovery of trainingcosts. The feasibility and form of financial incentives to be established inIndonesia will be established through consultant advice and study of training

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levies, grants and other financial incentives in other countries. Strengthen-ing of in-plant training will lead to more effective use of industrialresources and facilities to develop and expand training. Fees will beintroduced for specialist, advanced and upgrading training courses.

2.29 Industry would be closely involved with the development of trainingthrough membership of the proposed Regional Vocational Training Councils andparticipation through working groups in the development of training programsand training materials and in the establishment and implementation of trainingstandards and tests. The links between the training centers and industrywould also be strengthened by joint training schemes including in-plant train-ing and training in the BLKS, e.g., the JIVT, and by provision of industrialassignments and training placement for BLK staff. The project would alsoprovide a basis for drafting the decrees to implement the proposed TrainingAct which is now in draft and which includes provisions to enable theGovernment to require industry to increase its participation in training andto establish fees for training and related services.

Project Implementation and Management

2.30 The Secretary General of the MOM would have overall responsibilityfor the project and for interministerial coordination. The Director Generalof Manpower Development and Placement would be responsible for project execu-tion. Principal responsibilities for implementation of project activitieswould be assigned to the following units of the MOM: the directorates of pro-gram development, supply and placement of manpower, vocational training andskills development, instructor and private training and labor intensive andself-employment; to the central office for vocational training, which would beresponsible for the work of the BLKs; PUSDIKLAT, which would be responsiblefor the planning and administration of project-financed in-service stafftraining, and the National Productivity Center (Annex 8, Chart 1). The direc-torates and central offices Are already escablished: the project would expandand strengthen their management and implement tion capacity. Each unit wouldbe responsible for the preparation of annual plans and budget, and the imple-mentation and reporting of project activiries. The development budget wouldbe allocated to these units. Designated staff in each unit would havespecific full-time project responsibilities.

2.31 A Project Director's Office has been established in the DirectorateGeneral of Manpower Development and Placement with a full-time projectdirector and full-time heads of units to coordinate project activities andloan administration. The Project Director's Office would be responsible forthe central budget and accounts, -entral procurement of goods and servicesincluding consultant services and placement of staff in training overseas,support and services to facilitate implementation, monitoring and evaluationand loan administration including disbursement and reporting to the Bank(Annex 8). The appointment of key staff of the Project Director's Office(i.e. the project director, treasurer, manpower planning and training areacoordinators, staff development coordinator, procurement officer and admin-istrative head) should be a condition of effectiveness of the loan.

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Monitoring and Evaluation of Project Implementation

2.32 The following comittees have been established to assist projectimplementation and monitoring:

(a) an Interministerial Steering Committee, including senior (Echelon I)representatives of BAPPENAS and the Ministry of Finance, meetingquarterly, chaired by the Secretary General of the MOM andresponsible for coordination of policy and decision-making, reviewof project implementation and allocation of funds;

(b) a MON Technical Committee, comprising directors and other headsresponsible for project implementation, together with representa-tives of BAPPENAS and the Ministry of Finance, meeting monthly andchaired by the Director General of Manpower Development andPlacement.

2.33 The schedule for implementation of the project was reviewed andagreed with the MOM (Annex 9, Chart 1). The location by province of principalproject activities was also agreed (Annex 9, Table 1). Two moritoringschedules were agreed: one for monitoring critical implementation activitiesand dates (Annex 9, Table 2) and the other for monitoring outcomes (Annex 9,Table 3). Both are designed to be updated annually and to constitute basicmonitoring instruments for the MOM and the Bank. Budget allocations relatedto the agreed schedule of activities for the first year, 1986/87, have beenagreed with the MOM and BAPPENAS. At negotiations the Government gave anassurance that it would prepare an annual plan and budget in consultation withthe Bank and carry out the project in accordance with such plan and budget.Implementation wculd be monitored by the Bank through:

(a) submission by the MOM of quarterly reports on progress of keyimplementation activities; and

(b) biannual supervision missions including annual review of detailedplans for all project activities and budgets in coordination withthe annual government budget process.

2.34 The proposed implementation period is six years; this appears feas-ible given the advanced stage of project preparation and the large amount oftechnical assistance. To allow safficient time for submission of final with-drawal applications following the scheduled completion date of June 30, 1992,the Closing Date would be June 30, 1993. It was also agreed during appraisalthat at the annual reviews opportunities for acceleration of implementationwould be taken to the extent that additional counterpart budget and staffresources can be made available.

Technical Assistance and Staff Development

2.35 The project would provide substantial programs of staff training.In total there would be about 420 man-years of overseas training and about2,700 man-years of training in Indonesia. The overseas training program isconsidered to be the minimum needed to achieve the necessary level of staffdevelopment and well within the capacity of the MOM to absorb: it is intended

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to supplement this with a similar program financed from bilateral assis-tance. The overseas training programs would be administered by the StaffDevelopment Unit of the Project Director's Office, in close cooperation withPUSDIKLAT. Fellowship candidates would be required to undertake preliminarylanguage training in MOM facilities in the Jakarta BLK and other BLKs. Thiswould be followed by up to six months full-time study in an external course.Overseas programs would also include intensive advanced language training.The project would provide four man-years of consultant services to improvelanguage training and develop supporting material for the MOM facilities. Atnegotiations the Government gave an Assurance that candidates for overseastraining would be selected in accorcance with criterik and prozeduressatisfactory to the Bank.

2.36 To complement the staff development program there would be a needfor a considerable program of consultant services, international and domestic,to analyze existing systems and to assist with the development and implementa-tion of new policies, systems and procedures for planning, management andtraining. Consultant services would be maintained through the implementationand evaluation phases in order to achieve sustained change. The total programwould comprise about 106 man-years of service by international consultants and112 man-years by domestic consultants.

2.37 Schedules and terms of reference for training and consultants'services and packaging of bidding documents and short-lists for technicalassistance were agreed before negotiations (Annex 10) and confirmed bygovernment central agencies i.e., BAPPENAS, Ministry of Finance and SEKNEG.

2.38 In view of the critical importance of the assignmerc of MOM staff toact as counterpart teams on a full-time basis for all consultants, the MOM hasidentified key project staff by name and the composition of csunterpart teams,whose duties will be full time on relevant project activities.

2.39 The staff development and training progreA for the first year hasbeen agreed. The MOM has identified staff for the award ' fellowships in thefirst year and arranged for their language trainirtg aad training placements.

2.40 A major input of technical assistance in the first year would beprovided by the project funded expansion and continuatien of the UNDP/ILO EastJava Regional (Surabaya) project: the draft program for this regional sub-project has been reviewed and agreed.

Status of Project Preparation

2.41 The project was prepared with technical assistance financed by aBank loan under the project preparation facility. Schedules for appointmentof consultants, draft bidding documents including terms of reference, draftshort lists of consultant firms, and schedules of training fellowships andprograms related to each project activity have been agreed (paras. 2.37 and2.39). Key counterparts have been assigned and counterpart teams identi-fied. The East Java Regional program, to be provided under an expansion ofthe UNDP-ILO Surabaya project, has been agreed and these activities willcontinue from the beginning of the project (para. 2.40). Other consultantsare expected to be in post by September 1986. Candidates for trainingoverseas in 1986/17 would start language training locally in April 1986.

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Specifications for computers and related equipment have been prepared anddraft master lists drawn up for small tools and replacement of obsoleteequipment. The bidding documents for the first phase of equipment procurementwill be published in January 1987. Construction, which would be a minor partof the project and take the form mainly of adaptation of existing buildings,would begin in mid-1987. In order to avoid delays in implementation duringthe first year of the project, the Project Director's Office has beenestablished with agreed organization and staffing, the project director hasbeen selected and the government development budget for the first year'sactivities has been agreed (paras. 2.31 and 2.33).

Cost Estimates and Financing Plan

2.42 The total cost of the project is estimated at US$91.1 millionequivalent. The estimated cost by project component is summarized in Table 3and by category of expenditure in Table 4. (Detailed costs by component andcategory of expenditure and project expenditure by year and purpose are givenin Annex 11, Tables 1 and 2, respectively.)

2.43 Base costs are estimated at January 1986 prices. Technicalassistance and training costs are based on current actual unit costs of thoseservices in other education and training projects. Construction costs arebased on recent prices for building adaptation and small extensions for simi-lar purposes (Ministry of Public Works regional training centers and exten-sions at Surabaya BLK). Estimated equipment costs are based on: detailedspecifications and current costs of computer equipment; master lists of handtools and replacement equipment and estimates of supplementary equipmentneeded for advanced and specialist skills training. Duties and taxes on civilworks, equipment and services are estimated to be about US$3.2 million.

2.44 Project-related operating costs directly attributable to projectactivities and allocated within the MOM's development budget are included inthe project and amount to about 23% of project costs. The estimates and unitcosts were agreed with the MOM on the basis of actual current costs of compar-able activities (Annex 11, Table 3).

2.45 The foreign exchange component of US$51.0 million, representingabout 56% of the total estimated cost has been calculated on the basis of theestimated foreign exchange percentages shown in Table 4. Physical contingen-cies of 10% have been allowed for construction, equipment and materials,furniture and operating costs and 5% for technical assistance. Price contin-gencies which are equivalent to about 25X of base costs plus physical contin-gencies were calculated in accordance with the implementation schedule and thefollowing expected average annual price increases: local -- 1986-90, 6.0%;1991 and beyond, 4.5%; foreign -- 1986-87, 7.0%; 1988, 7.5%; 1989, 7.7%; 1990,7.6%; 1991 and beyond, 4.5%

2.46 The proposed Bank 'oan of US$58.1 million would finance 66% of theproject costs excluding duties and taxes. The remaining US$33.0 million,which includes duties and taxes, would be provided by the Government. Thefinancing plan is shown in Table 5.

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Table 3: SDMMURY OF PROJECT COSTS BY COMPONENT /a

Foreignexchange

Rupiah billion US$ million as % ofLocal. Foreign Total Local Foreign Total total

Labor Market & ManpowerPlanning Information Systems 4.8 4.9 9.7 4.4 4.4 R.8 50

Training Management and theNational Training SystemManagement of training 6.2 7.4 13.6 5.6 6.7 12.4 55National Training System(including occupationalstandards and tests) 3.4 2.4 5.8 3.1 2.2 5.3 42

Subtotal 9.5 9.8 19.4 8.7 8.9 17.7 51

Upgrading of TrainingVocational training programs

(BLK) 6.4 11.9 18.3 5.8 10.8 16.6 65Instructor training 6.7 8.7 15.3 6.1 7.9 13.9 56In-plant training, supervisorytraining and productivity 3.7 3.4 7.1 3.4 3.1 6.5 48

Self-employment & informalsector O.R 1.3 2.1 0.7 1.2 1.9 63

Mobile training 1.0 1.3 2.3 0.9 1.2 2.0 58

Subtotal 18.5 26.5 45.0 16.8 24.1 40.9 59

Total Baseline Costs 32.9 41.2 74.1 29.9 37.5 67.3 56Physical contingencies 2.6 2.8 5.4 2.4 2.5 4.9 51Price contingencies R.6 11.7 20.2 7.R 10.6 18.4 58

Total Project Costs 44.1 55.6 99.7 40.1 50.6 90.7 56

Project preparation facility 0.0 0.4 0.4 0.0 0.4 0.4

Total /b 44.1 56.0 100.1 40.1 51.0 91.1 56

/a Discrepancies in totals are due to rounding.

/b Includes USS3.2 million taxes and duties.

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Table 4: SUMOARY OF PROJECT COSTS BY CATEGORY OF XPENDITURE

Foreignexchange

Rupiah billion US$ million as Z ofLocal Foreign Total Local Forelgn Total total

Civil worksClv:il vorks 2.4 1.0 3.4 2.2 0.9 3.1 30Professional services 0.1 0.3 0.3 0.1 0.2 0.3 80

Subtotal 2.4 1.3 3.7 2.2 1.2 3.4 35

Furniture. Equipment & BooksFurniture 0.3 0.1 0.3 0.2 0.1 0.3 20Computers 0.3 2.4 2.7 0.2 2.2 2.4 qoTraining equipment & books 0.9 R.4 9.3 0.8 7.6 8.5 90

Subtotal 1.5 10.9 12.3 1.3 9.9 11.2 88

Technical AssistanceConsultantsDomestIFconsultants 4.8 0.5 5.3 4.4 0.5 4.9 10International consultants 1.5 13.9 15.5 1.4 12.7 14.1 90

Subtotal 6.4 14.5 20.8 5.8 13.1 18.9 69

FellowshipsLocal rellowships 5.5 1.4 6.9 5.n 1.3 -6.3 20Overseas fellowships 1.3 11.5 12.8 1.2 10.4 11.6 90

Subtotal 6.R 12.9 19.7 6.2 11.7 17.9 65

Total TechnicalAssistance 13.1 27.3 40.5 12.0 24.R 36.R 6R

Project-Related Operating CostsSalaries and wages 6.7 0.7 7.5 6.1 0.7 6.R 10Materials 3.4 0.4 3.8 3.1 0.3 3.4 10Travel 1.7 0.2 1.9 1.5 0.2 1.7 10Other 4.0 0.4 4.4 3.6 0.4 4.0 10

Subtotal 15.R 1.8 17.5 14.4 1.6 15.9 10

Total Base Cost 32.9 41.2 74.1 29.9 37.5 67.3 56Physical contingencies 2.6 2.8 5.4 2.4 2.5 4.9 51Price contingences 8.6 11.7 20.2 7.8 10.6 1R.4 58

Total Project Cost 44.1 55.6 99.7 40.1 50.6 Qn.7 56

Projlect preparation facility 0.0 0.4 0.4 0.0 0.4 0.4

TOTAL COST /b 44.1 56.0 100.1 40.1 51.0 91.1 56

/a Discrepancies in totals are due to rounding.7W Includes USS3.2 million taxes and duties.

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Table 5: FINANCINC PLAN

IBRDGovern- share (Z)

Category of expenditures mentla IBRD Total/a (exclusive---- 7USS mIm) ---- of taxes)

Civil works 2.9 0.8 3.7 25(0.3) (0.3)

Equipment, furniture and materials 5.0 8.3 13.3 64(0.3) (0.3)

Consultants 2.5 22.1 24.6 100(2.5) (2.5)

Overseas training - 15.6 15.6 100

Local training - 8.0 8.0 100

Project related operating costs 20.6 - 20.6 0

Project preparation advance - 0.4 0.4 100

Unallocated (physical contingencies) 2.0 2.9 4.9 61(0.1) (0.1)

Total 33.0 58.1 91.1 66(3.2) (3.2)

/a Figures in parentheses show estimated taxes included in totals.

2.47 Retroactive financing of up to US$0.5 million would be provided tocover project expenditures incurred after appraisal, i.e., from November 30.1985. These include start-up costs of the Project Director's Office, localinstructor training and preparation of the first group of staff to be trainedoverseas.

Annual Costs

2.48 The development budget for training activities of the MOM for1985/86 was about US$48 million but the actual expenditure was about US$25million. The 1986/87 development budget. is reduced to about US$20 million.The annual total project development cost of about US$13 million total wouldrepresent the major part of the current development budget for training but itwould replace rather than add to existing activities. The average counterpartbudget of about Rp. 6 billion per year is regarded by Bappenas as reasonableand acceptable even in the face of expected budget stringency. The routinebudget for training activities for 1986/87 is approximately Rp 6.3 billion, anincrease of about 30X over that of 1985/86. The increase is due mainly toincreased personnel costs. The long-term effect of the project on the routine

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budget will be an increase of approximately Rp 2 billion per year for trainingmaterials, travel and other support costs for the upgraded training. Thisincrease will be more than balanced by reduction in the development budget onthe completion of project activities. A significant part of the futureroutine costs should be carried by fees charged for specialist and upgradingtraining for industrial employees.

Procurement

2.49 Consultant services would be arranged in packages procured inaccordance with Bank guidelines. Training overseas would be arranged by theMinistry for groups of staff using the services of international and nationalagencies. Civil works contracts for adaptation and small extensions wouldcost less than US$1.0 million each. Based on experience in Indonesia,contracts of this size in dispersed sites would not be attractive to foreignconstruction companies; therefore, the contracts of total value of aboutUS$3 million would be awarded after competitive bidding advertised locally in.accordance with government procedures which are acceptable to the Bank.Equipment required for specialist and advanced skills and computers would begrouped to the extent possible in packages to facilitate bulk procurement andpackages estimated to cost US$200,000 or more (estimated value US$12.4 mil-lion) would be awarded on the basis of International Competitive Bidding (ICB)in accordance with Bank guidelines. In the comparison of bids for equipmentand furniture, local manufacturers would be extended a margin of preference of15% of the CIF costs of competing imports or the actual custom duties,whichever is lower. Furniture and equipment packages for small hand tools andother small items estimated to cost less than US$200,000 (estimated valueUS$1.5 million) and which, because of content, are not expected to interestforeign suppliers, would be awarded on the basis of LCB advertised inaccordance with government procurement procedures which are acceptable to theBank. Other equipment arranged in packages not exceeding US$25,000 in valueand aggregating less than US$0.75 million equivalent would be purchased on thebasis of quotations from a minimum of 3 suppliers. Books, computer softwareand other instructional materials would be procured through direct purchase,after negotiations for the lowest price. A breakdown of project ex.jenditureby procurement category is given in Table 6. Prior Bank review of oiddingdocuments and proposed contract awards would be required for all contracts forequipment awarded on the basis of ICB, estimated to cost about US$12 million(84% of the value).

Disbursements

2.50 The proposed loan of US$58.1 million would be disbursed over aperiod of 7 years. Disbursements would be made on the basis of (a) 25Z of thecost of civil works; (b) 100% of the c.i.f. cost of imported equipment, furni-ture and materials, 95% of the ex-factory cost of locally manufactured equip-ment, furniture and materials, 65% of the cost of imported equipment, furni-ture and materials procured locally; (c) 100% of the cost of consultants andfellowships and (d) refunding of the project preparation advance. To theextent practicable, withdrawal applications would be aggregated in amounts ofUS$100,000 or more prior to submission to the Bank for reimbursement out ofthe proceeds of the loan.

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2.51 Disbursements for civil works, miscellaneous equipment and furnitureitem, books, computer software and other instructional materials and localfellowship training, in packages of up to US$25,000, would be based onstatements of expenditure. Supporting documents would be retained and madeavailable for review by visiting Bank missions. All other disbursements wouldbe made against full documentation. Local training costs would be reimbursedon the basis of agreed unit costs which would be reviewed annually. Thedisbursement schedule (Annex 11, Table 4) has been based on the implementationschedule and the disbursement profiles for education projects in the countryand Region modified only to reflect a seven-year disbursement period insteadof the average of nine for past projects. The shorter disbursement period isjustified by the advanced stage of project preparation, particularly theprocurement of technical assistance, planning and budgeting and establishmentof the Project Director's Office (para. 2.41).

Table 6: PROJECT EXPENDITURE BY PROCUREMENT CATEGORY(US$ million)

Total costincluding all

contin-Category of expenditure ICB LCB Other/a gencies/b

Civil works - 4.0 - 4.0(0.9) (0.9)

Equipment, furniture andmaterials 12.1 1.5 0.8 14.4

(8.0) (0.9) (0.4) (9.3)

consultants /c - - 26.0 26.0(23.4) (23.4)

Overseas training fellowships - - 16.2 16.2(16.2) (16.2)

Local training fellowships - - 8.3 8.3(8.3) (8.3)

Project related operating costs - - 22.2 22.2(-) (-)

Total 12.1 5.5 73.5 91.1

(8.0) (1.8) (48.3) (58.1)

/a Other procurement includes: recruitment of consultants, placement ofstaff in training, and project-related operating costs, e.g., payments ofhonoraria, materials, local travel costs.

/b Values in parentheses are estimated disbursements from loan includingprice and physical contingencies. The inclusion of physicalcontingencies accounts for the discrepancy between these values and theamounts shown in Table 5.

/c Includes project preparation advance.

- 27 -

Reporting and Audit

2.52 Consolidated project accounts would be maintained by the ProjectDirector's Office. The accounts would be maintained in accordance with soundaccounting practices satisfactory to the Bank. The units concerned would sub-mit to the Bank within nine months of the end of the Government's fiscal year,statements reflecting the financial performance and position of the projecttogether with auditors' reports including separate audit of accounts relatingto disbursement against statements of expenditure. Six months after theClosing Date, the MOM would submit to the Bank a project completion reportcovering all project components. Assurances were given by the Government atnegotiations that it would comply with these arrangements.

Benefits and Risks

2.53 The main benefits would be: (a) improved labor market and manpowerinformation and planning systems at national and provincial levels; (b) moreeffective management of training and establishment of a national trainingsystem -- occupational standards, skills standards and tests and a jointindustrial vocational training scheme; (c) upgrading of basic training andestablishment of a capacity for training about 20,000 people each year in keyskills and occupations at advanced levels and in specialist skills;(d) improved efficiency in utilization of training resources; and (e) devel-opment and improvement in the key areas of in-plant industrial training,training for self-employment and the informal sector, and mobile training. Aswell as making an impact in these areas, the project would includearrangements for monitoring of costs and outcomes to provide experience onwhich to base later substantial long-term developments.

2.54 The main risk is possible delay in implementation. To lessen thisrisk detailed consideration was given to matching the project scope to theresources and implementation capacity of MOM, and to the arrangements forproject management and monitoring (paras. 2.30 to 2.33). In addition,arrangements have been agreed for continuing the existing East Java regionalprogram of technical assistance through loan financing of an extension to theUNDP-ILO project to ensure the presence of consultants from the outset of theproject (para. 2.40). Project activities have been designed in detail andagreement reached on a system for close Bank monitoring including detailedreview of annual plans and budgets.

III. AGREEMENTS REACHED AND RECOMMENDATION

3.01 At negotiations the Government provided assurances that:

(a) annual staff development plans will be prepared, in consultationwith the Bank, for the key organizational units for all projectactivities, and staff and counterpart teams will be appointed inaccordance with such plans (para. 2.10);

(b) annual plans and budgets would be prepared in consultation with theBank, and the project would be carried out in accordance with suchplans and budgets (para. 2.33);

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(c) candidates for overseas training would be selected in accordancewith criteria and procedures satisfactory to the Bank (para. 2.35);and

(d) accountm would be maintained in accordance with sound accountingpractices and six months after the Closing Date the MOM would submitto the Bank a project completion report (para. 2.52).

3.02 As a condition of loan effectiveness the Government should:

(a) appoint staff to the agreed key posts in the Project Director'sOffice (para. 2.31).

3.04 Subject to the above conditions, the project would constitute asuitable basis for a Bank loan of US$58.1 million equivalent to the Republicof Indonesia repayable over 20 years, including a grace period of five years,at the standard variable rate.

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CaAflw mm tAnTIOu IDICATo

April 14 1986

C-VERN12W_pmina EDcATiom COMFLITION ammanz ONl DUCATION REO'IRREN ADULT RATIE POE UNIT COST PUkOCRE8SOU

cmr FErCAS PZNT fR XPEbIIDTURS L1TERACY FRIAS IPRIMATR PRIWART PRIMART RATE PROM SEcNDART SECONDARY NICKCRAM POP. COiTA PERrT CNP TOTAL CENTRAL ALLOCTED TOt tATE ENROLL. SCIIOOL STUDNTS EDCATION PRIMARY TO ENRDLL. STDnTS ENROLL.

R" MILUS. CULSS) DrnlrTD TO cOVEcRS PHI scC Ni CZ) RATIO CYCLE PER * PERCERT S rCfDAlY RATIO PER RATIOt . 971(9) 7Sgh } crtCATIOl VxcPEDmM (1) t 1476) t2 S1 tS) TCANCxII GC -/CALP1TA ( C ( S TUAICt (S1)

_I(1) (2) (3) (4) () (Ce 71) (Ct) (9) (103 (11) (12) (13) (14)

DEELOEZIXO ClUtRIESAl!SltALL so 14.6b 8.R70 6.3m 14.6 - - -- ~ 1032 too 21 - 99 t3 13 2"..oCWAD RI 23.7b q.65ob 7.7a 1R 5my n-? 3A-t 238? s9b tofix l00 21 19.447 [on 92- la 22.60xGCCIIIWI P.R. 79 61.2 12.200 4.6 9.9d _ -- nb ngm Iroo _ _ loom S^ - 12.10MWTMLNS 79 1". O^ 5. 20 15 25 99br 46 q5 is 15.} 99 87 13 12 40RO ~~~~s SCLD 8 .b6081b 75.5- 11d 7 31 2x nb" o In 2^ 1. o Q 1 5R"MMD ZSALAIU32 0:90 9 1]. Ia a 4 .: o r

9 -ir I ~ 7 1l.3 1 Z.250 g. O I.2 1 1 10 to q9b x" 100 In. 14.9 too 7^x IO J 36.50xP

EASTERN AFRICANUJ1R I 3 1ob1 20b 6.0 Z2.4 * 1 34 22 4o iron 77 32 In.0 40 20 21 I.R0MM I at *.2 235 2.11b. 19.0 13 28 27 25 29 is1 37 20.2 12 3j 17 I.W0013620 U 0.4b 345 3. f 2s.n 49 29 22 9 Jb *0 19 - *5 16 2x O.hODfl3OL'I 84 0.4 480 1.0 11.9 73 26 ... 10 42 6e 40 67.0 40 In 139 0.0nClOLA el 32.8b z&ob 2.P 1.1 1 5 25 20 S3 42 30o 63 19.3 43 14 4L 0.45KENA 82 174b £2ob 06 "b Zo.jb 65 16 13 48b 113 58 36 14.4 3s Is 26 -1.5502 82 .46b 433b S.5 16.9 38 32 26 h3b 1

36X 41 48 9.6 46 21 231 1.30

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lAZXUmil *3 og7b shob 3.3pb 20.4 51 34 15 65b 93 50 33 33.0 98 29 I3 z3.no

TANZ1ANI 30 13 5 260 5.9 17.7 47 10 Ib 79b gab 67 43 11.0 jb 3 20- 0.30UCAIDA 8o 12.6b 300b - 16.13 23b 37b 2nb a 54" 61 14 - 17 5 23 0.60ZAIRZ at 25.6b 230b 7.7 26.4 - - 10 5,b 7A 25 30 21.0 40 t3 26 2.00ZASIA 30 5.7b h6b 4 ;p 11.1 48 23 22 44b 95 so a 12.9 19 36 22 1.50ZIOAZW SI 7.7b 700b 5.3 19.5 62 32 6 44b 90 55 19 20.0 R5 Is 23 0.50

VESTERN AFRCAL_-Xii 79 3.4b 3206 6.5 35.0 43 21 s ib 62 30 46 14.0 30 13 43 3.00O

301A3 63 6.5 2106 2.13 21.7 43 29 28 9 16 25 57 Z4.3 16 3 24 0.03CAIRO 73 8.2 590 2.5s 14.07 338 418 20" - 74Y 456 SO5 113.3 20" 34) 26 1.30rC.A.R. 79 2.2 280 3.11)r 20.6 r - -- - - - 65xY - - - - 0.7n4rCRID 7b 4.6 120 2. 6b 21.7b - _ - t5 25) - 77 - - 3x' 21 0.20n01300 78 1.5 670 9.0"Y 27.7"? - - b- - 566 - 30 - 43b6 4.00")CASON 77 0.6 3.420 3.76)' 3.47 - - 46br - - - 39_29by 238GAMmA 77 0.6 220 3.3"' 6.36 6 258 0" 3n6 46 ob 90 27br 4.7" 40 lzb.7 17 -03RA4 76 11.3 40 4.01 1535b - --_ - - 73b6r - 27br - - 36b'? 21 -cUCS 79 5.3 290P 44.28 - 258 26" 248 20 34 36 38 2n.0"' 63 16 29 7400"IVORF COAST 83 9,3b 720 7.3 42.4 5 40 9 33") 72 79 37 29.0 49 22xz 30 1.aLIBENIA s0 1.9 520 4.6 19.4 43 23 24 30 32 32 35 20.0 76 22 20 2.90MALI a1 7.ob 190 46.P 231.7 36 21 33 10 20 60 44 15.7 66 1 II 0.9057MAURITANIA 78 1.6b 320b 5.5 16.9 33 63 25 17b 32 60 44 52.0 30 9 23 0.37NICER 84 5.2 300 2.4 21.0 40 25 20 14 25 20 36 41.0 37 b 28 0.50Nic-A 83 93.2b 760b 7.41 16.0 - - 13 36 93 70 36 19.5 47 23 30 2.00SENEGUA 77 5.5 450 5.0 23.0 46 34 20 1o 36b7y - 43br - 20 In 21 2.20bySIERA La3 77 3.4 250 4.0b 16.ob - - - 15b 37' - 35 25.0b U 4 IS3 22 0.60brTOCO 78 2.4 40 6.59W 26.59 30" 23" 218 18 74 40 54by 383. 52 32bx6 tgb 1.6oby

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30L4.11 s0 5.4 550 4.3-r 3015 - - - 63 74T - 20r - - 315 - 12.60rXtAZIL 79 116.5 1.770 3.8 4.2 51 - 14 76 73"? - 2317 4,5b bl- 358) 34-x 12342b

C031. 76 30. 1. 890 3.2b 13.06b - - - 3396by - 34b - - 55bx 20b6 l1.907bCOLOa A 6 2 7b 1 . 3.3 25.0 35 20 20 83b 76 36 32 6.6 - *7 20 301.02COSTA RICA 8o 2.2b I ag

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co" 78 0.8 - 6.0 11.0 - - - 3f 1 "2?ty q96 3s6 - 7 qh 7bx i5 19.o2bTDDa7X W. 60 5.3 1.030 2.9 13.0 39 21 22 Ab s0 31 59 3.2 94 30 33 16.00XCCAIIR 60 8.4b 1.llo 4.0P 36.7 A5 31 16 8l 105 - 34 12.6 36 47 34 29.00EL SALVADO 77 6.4 640 3.4by 2331by 64 6 27 62 82bUr 32 39 - 61 26b63 27by 7.90bycUATDIALA 78 6.8 1.010 17 12.6b - - - - 69b0' - 35by - 69 35b6 196by 5.50)cnak 74 0.6 630 6.36by 13.8 670 - - - - 9bxy - 32b6 - - 0bxr -- 3.007bMAITX 60 5.0b 230 3 4V 7.9mY 65 9 6 23b 50 20 41 19.0 42- 4" 27 o0a.NORi_RAB 73 3.6 520 3.56b 134. b 62" I" 19- 60 89b.7 30" 41b7 12.86 6"- 231Y 19 8anerJAMACA 60 2.3 1.110 6.3 13.7 37 Al 20 90 98 98 40 2.3 95 81 22 6.00IISICD 80 65 5 1.R3o 4.7 17.0" 46 39 is 92 96 53 64 9.5 86 54 I? 30.30

xICARAGA 78 2.6b 6106 3.0bw 14.06 - - - gob 85b6 26 37b - - 26bx 306IPAAMA 73 1.8b 1 550b 5 5b" 21.68b 42" 133 13 82b qsb9r - 25by 13.6 ass 506b 27b 20.40nbrPAAUAT 79 3.0 1.140 I.4, 14.2 42 17 20 84 83 32 28 3.1r 76 22 12 0.70PM 80 16.6 1.000 3.6 14.3 53 35 19 80 83 56 39 9.8 89 39 22 14.40)TINIDAD 6 TO. 77 1.1 3.910 4.8by 8.sb6 48 32 20 95 96 91 30 in.5? 49 62 24 -UNCOA 7x 239 2.500 2.5 9ab - - - 94 105bx - 24b _ - 4bx -- 17.8017VEREEL 78 14.4 3.440 5.17 1g,9b - - - 82 306bx - 28 - -_ 3Sb6 17 21z.il

- 30-AI

Pare 2alWAaATzV SbUcAflU INDICATORS

April 134 198

_~~ SUPzpunum EIScAfolw CneLrTIId REorSOn UNICAYTION IRWRRNY ALTML RIATE FOR LI'M! 05? puoimspulo

CR? SR AS pCUITr AUIDrTVRE LITERAy P51MB PR11LMW PQCV1 Pn8 AYPRNT JA M UME SOMMUI NUtIURlAM PoM CAPrYA FENCERS CeP TOTAL CTRAL AUOCASTae t RATE ENROLL. CemoL TUSD33s SUCATIOu PRIMA TO UnROLL. UST T E1iOLt.Ala 3.3 TV" DeCD sn e nLLc. (USE3 I4 D 3 OESMIU F oRI EZ) RATIO CUru PER AS PERcIsI EOIAEV RATIO PERt RATIO

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(1) (2) (3) (4) (5) (I) (7) I8) (9) (10) (11) (12) (13) (3')

CMAS ASIA AND THEC rACIPC

ClilbA *1 T.-Us nb 3job 3.i 7.1 38 40 22 7 7 h 77 62 25 b O 65 35 17 4.10I UA AS* 150 sb 520 2.1 9.3 70 24 6 32b 9 63 37 1834 74 2? 21 3.70

XOSA 12 gq*hb 3I63hh 7.W7 20.8 34 34 31 96 99 9g 4) 89.0 95 54 33 21.10MALAYSIA 3* I:S2b 1 3 7 0 h 6.3 36.7 30" 43W 399 70b 973 97 26 1 .59 19 72 22 4.0oPAPUA N.C. 33 3.9R 820 5.4 19.0 40 17 22 - 60 73- 313 153.n 5 18I8 27X 3100PMILIPPI2 79 48.3b 4901 2.99 14.0 64 V6 - 75b a 65 31 7.I 5m 51 IA 21.00SICAPOR o 2 4 4.420 2.7 6.7 39 40 16 R] 92 52 33 8.3 94 55 22 1.00SINMIN IQ. 82 0.26 640 I.SP- 1jq01, & 14 20 *5 78 sO 27 10.5 40 20 l8 2.50TSAXAN 32 49.ob Sh ].4 20.3 59 14 I8 *fhb al AM 21 9.3' 4 4 3I 4.0

SOM1 ASIARANGLAOU 79 92.3b 90 IjIP In038 51 17 20 22b 63? - 53 5.6 14 23 1.43S2uN so 1.2 so 3.6 11.0 - - - 12 - _ IMIA 77 659.6 210 2.Qy 9.9" - - - 36 79" - 63 - - 213 - 5.30'lcrAL 82 :S.06b 3o6 3.4 - - - - 19 70 - 3 - 21 23 3.70'PAKISTAN 82 g7*3h 3 8 b 2.0 7.0 38 20 24 22 50 41 30 5.9 56 23 i5 3s00

DrcS. NIDDL EUSY AND Ml RIcAAIS WANISYAN 77 25.5 - 1.7 3.7 41 19 15 12 33b9 69 376 - 62 a 2267 1.007AECUA 79 IN.3 1.770 3.99 12.3 36- 26- 213 35 8a 45' 37 7.0? 558 29? 26 3.707RSvP 82 43.32 65' 4.6" 7.9 31- 35 26' 44 755 R0o 34- 9.1 33 4*r 19" 17.00CRM 76 9.3 4.140 2.69 30.6b 37 26 21 - 9767 - 20b 1.2? - 79x 2767 17J0h1

1IRA 79 36.9 - 5.7'7 1&.1'7 - - - 50 30"- - 32 - - 4 26' 4.90IRUQ 79 22.6 2..7 4.3'r 6.9Y _ __ - - 4S 2 - 28 - 4 29 9.20'

QR335 33 D46 4*480 6.3? 3 15.5' - - - 98 93 94 29 - 98 61 14 33.00JOIUA 81 2.26 3.420h 6.9" 10.2 19 4A INI 7b 57 85 32 15.1 - 57 35 6.90

8hAWS 79 2.3 - - 18.6-7 - _- - _ 0 - 19 - - 46 - 27.501'=}MDrDC " 213.b 670b 6.0" 22.9 38 43 19 35 573 9 53 15.1 - 86 J ,.9o,

ON" 52 0o 9b 5.920b 2.5'" 2. ' 30b7 7ij 65 25 - R6 it 14 ...PORTUGAL L9 n q9b 2j 060 3.6 22 2 5025 11 75 97 20 191 12.3 55' 45- 17' II.3

IAZ 76 22.1 2.300 3.9br 6.27 - - - 9r iosbs - 23b - 98 5 Bb6 n2b 10o.60bSPAD 76 37.0 4.920 2.1My 16s. - - - - 986b - 29b - - 67b7 - 24.lobYSYRIA 78 8.4 1.170 4.4P 20.3 35 25 26 58 87b6 s0 35b - 64 4jb6 jb 12.60TIUISIA 79 6.4 1.330 7.01 19.4 42 59 as 1b2b 3x s8o 29b 12.8 30 30' i0 6.00SiVn 33 47.5 1.230 3.3 16.2 50 22 24 75b 3l3 77 31 6.0 55 26 13 8.00*U A.R. so 6.8 420 5.099 12.0 94 7 7 236 37 82' 313 67.0 as 3 20 1.30

TOR P.D.R. 32 2.0b 420b 7.6 9.7 63- 84' 5' 53 61 34 25 22.04 AG 17 20 2.50

5366CW FM DRVEWPI8S WOTRIES:-Mefmor of Cantrio.: U6 93 70 69 67 R3 92 6i5 95 65 75 9I ra 55

Raos (I.4- (3.7- (23- (6- (5- (5- (22- (12- C37- (1.4- 20l- (- (5- (0.03-10.0) 54.3) 94) 46) 33) 99) 91) ) 77) 67.0) Ion) 34) 44) 29.0)

Qartnll: Spoor: 5.6 21.7 51 36 22 UI 95 an 43 2D 87 47 26 13.0

Iadian: 4.0 16.1 43 25 19 53 53 fl 35 13 65 26 22 3.7

Lamer: 3.0 11.0 38 21 13 25 60 35 28 9 *0 13 I0 1.0

Qurtllo Ds,l nao: 1.3 5.4 6.5 7.5 4.5 25.0 19.0 22.1 7.0 5.6 23.5 16.5 3.5 5.0

_o_: 4.6 17.0 46 28 13 53 76 59 36 16 62 31 21 6.0

Standard t 1.9 5.7 12 30 7 29 27 2A 11 13 27 23 7 7.4

10dIa: 4.0 16.0 43 2 3 1 5 3 33 41 35 13 65 26 22 3.7

SYSt nOs:

- DATUM UUAVALAML A - DATUM PRR TO RISE TEAs S - Mm31TRY OP UICATlO (ICE) oML

. Acn. E 5cOL o0 RRcLICLZ R - DAWN MORS RECCII 1AN RISE Y14R Y - IME aD STATE COVEMsENY OILY

DATUM OUECMSnALZ - CURRET PRIE U - PLIC WcE-DITURlE ONrLYrpCOImS P57TUTIE STUCiEm S - IME? UROUNS? RATI0 K - INCLUSE OVES-ACE EUET

c - GRr oELN LS'? RATIO I - 0338 n Q SOURCESP - GOP

SWinzt Clva 3 *sd 2: ibrld ark Atla or Educago, matter field u iota m.CA1na 3 to 34: 'rlud nk u-taon aetor -o. ernoc *ure- oSor the Into itatioeaol Toorbb.

bmratlw Edmtioo DUoa are soeb- lo In tie a, laion of emm dacatlomn so7sta and malysto of relotie otqps of adocattonal dewolopent bsato yCrlaspcouartaam. Roeear* e tho b_i-l of tho pr t data. crosm-nsatnool cWaartmo sohld be approached with groat cotion. Dora prromotd In the 'bo. tble k-blan collacd largely by Sait olmoies from tr rrnmot eoorco: tim rom_ndr are staff etatoa or data from It_oo. rEforts tan boan a.d to *taadardl,e

deftoitita ad. withim lIsd-.t to chock the crcerer a of et data. Nwebolo._. ouch datso a 0 s1 i perfect in mr el r_oemta as rho moak ta wo rIsax toi_o. o thu prugrm.aio.ly - trm ocele o, f Ira ermrtonal r, In toh -n of teo. dat. tho following qalifl,cation abhld be hkpt n Isod:

(1) EdoAtio - d defl td in 16e taba; lncldma all aducacio and traninga. bhtu tornl and ro_tor_l.

(2) 'Pri'or admtio refer., to aiuratio at rho fit2r le1ss!sand a_rndar eduocation reform 0 all odoario at toe le,r1l rogardlea of typa(-.l. amoral. toebta201. arrmltmr).

(3) Llteracy rae.o (col. 6 ore oft." obradood frm coontry c. eane. In many countrrs they or. oly approtiestlen ead lt 1a doubtfu1 Thbt-an mtonfer,defilamito of 'literaet ba- bom folloimd conslatnrcly.

(4) Pmhltc xpaie dtturo in aduocat20u (cl.. A nd 5) referm to a11 capita nd roeurront oxpaod1ture, dawtod to ducatien by publ2c and *e_a-Puhble

(5) areol7net reclo- (clo. 7. 12 nd 14) rotor to scbool yar nd are, rho parcontae of eligibla cildra ""nrllea full-te, 1n the appropriate school.pablic sad pridata, bl -_1. Stim ore oftan aubjct to o wide erutn of orror In trh dewolopina coontrIa oing to wariationm to tbh acracy of hosedota (i.e. *g-plf1c poulartion and enrolt tnt). Earllimot fir.. f-rauntly arb hilihr tbho rho _I r of tuter ascually o *chool.Oor-oad mteets, my be sncludd in tibeo ftgro nd can Inflate rho roten.

- 31- ANNEX 2Page 1

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Projections of Skilled Manpower RequirementsDuring Repelita IV

1. The figures in Tables 1 and 2 project the probable orders of magni-tude of two kinds of manpower requirements during the five years 1984-89.Both projections were derived by first assuming total employment growth ineach of the sectors considered and multiplying this growth by the expectedproportion of employees in each of the occupational and skill categories. Theproportion coefficients came from a statistical analysis of the occupationalcomposition of employment in a number of developed and developing countries.

2. Table 1 presents the projections for the 5-year requirements inseven basic industrial trades; they are large because the Government's plansfor industrial growth during Repelita IV are ambitious.

3. Table 2 presents estimates of the occupational composition offormal-sector employment growth only, in recognition of the likelihood thatthe method may be more valid for this than for total employment growth withits large non-formal component (see Table 1). As with the figures in Table 1,the assumptions underlying the calculations indicate the need for caution intheir use for policy-making. In the absence of data on occupation by sectorin the base-year, the Zymelman coefficients (more often used to calculate thestock of each category in each sector required in the target year) have beenapplied to the projected increase in employment in each sector over the planperiod. In so far as the stock of skilled workers in the base year was belowinternational norms this would tend to underestimate the economy's requirementfor an increase in that stock. On the other hand, training requirementscannot be inferred directly from these tables, which merely show theapproximate required numbers of workers in these occupational categories.Their main value is to indicate the huge scale of possible growth in demandfor skilled workers, much greater than the known training capacity in thepublic and private sectors.

- 32 - ANNEX 2Table 1

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

New Skilled Worker Requirement (Selected Occupations)For Selected Sectors of Manufacturing Industry and Construction, 1984-89

Metal,Selected machinery Wood.& Total

occupations & related Textiles furniture Construction rounded

Cabinet making& carpentry 5,000 1,000 280,000/a 64,500 351,000/a

Drafting 3,500 500 1,000 1,000 6,000Electrical 13,000 1,500 1,000 17,000 33,000Mechanics &machine shop 84,000 7,000 7,500 8,500 107,000

Piping, plumbing,& sheet metal 23,000 - 1,000 20,000 44,000

Welding 25,000 500 1,000 2,500 29,000Bricklayer & Mason 2,500 500 1,500 41,000 46,000

Total new 500,000 400,000 470,000 430,000 -employment(All levelsand occupations)

/a Includes semiskilled workers.

Source: Occupational distribution from M. Zymelman: "Forecasting ManpowerDemand," World Bank, July 1980. Sectoral employment increases basedon the 1980 Indonesian input/output table; assumed growth rates of 52p.a. except for metals industry where an 8Z and wood where a 6%growth from 1984 have been assumed. Construction industry employmentgrowth from Table 1.

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Project6d Employment Growth in Formal Sector During Repelita IV, by Occupation

Mining Mfg. Const. Trans, Trade Finance Services Total

Professional & Technical 500 8,900 5,300 5,200 1,400 3,300 60,000 84,600Engineers & technicians 300 4,100 4,300 1,200 300 550 5,000 15,750Engineers 150 1,800 1,900 400 75 230 1,550 6,100Technicians 100 2,250 1,900 700 250 270 2,650 8,100

Accountants 25 930 275 350 250 950 1,200 4,000

Administrators 6 Managers 300 11,400 4,800 4,800 29,000 3,100 24,000 77,300Clerlcal 200 20,500 4,800 12,400 5,850 28,500 75,400 147,650Sales workers 50 8,000 300 800 60,800 5,000 3,600 78,500High skilled sales 15 3,050 150 500 1,350 1,000 2,700 8,750

Manual Workers 9,500 333,100 180,300 107,100 27,000 18,000 645,000 1,320,000Foremen & supervisors 400 4,000 750 350 175 100 5,150 10,925Construction 700 5,525 1079000 600 300 50 19,000 133,200metal 200 36,500 3,700 1,000 100 50 7,500 49,000Transportation 600 4,650 3,900 65,950 1,200 180 15,000 91,500Mechanics & repairmen 500 8,200 1,250 2,750 450 70 37,700 50,900Industry specific 6,200 202,900 7,500 1,700 4,600 600 45,000 268,500Laborers 650 25,000 40,000 14,600 3,300 1,000 30,000 114,300Service workers 250 10,000 3,500 7,500 16,250 10,000 394,800 442,;00

Total Employment Growth 11,000 390,000 1945000 138,000 127,000 58,0O0 810,000 1,728,000

Source: Binagram, Ministry of Manpower, Nov. 1984. Based on coefficients in Appendix I of M. Zymelman,op. cit., and on formal sector employment growth as in Table 1.

t"Jf%

INDONESIAMANPOWER OMELOPMENI AND IMINING PROJECTOrganhzao1on Sluctu, dofte M(V of Manpaw

&PAM 0 ~~~~~~~~~~~~~~~~d m a~

d

DkwkW~~~~~~ d ~~d Med_

pmown &"* a FOMMI~~~~~~~~~eAb'O.iqme

-~~~~~~~~~~~~ _I

t NW.~Wdbs ~sV~ d mWIlw*ff ~ be e~#~ ~eIh t daci.*$MM "o

I ateWGldd | | iaGldr |fte

d I g l I§

13 1OM.~~~~~N MM _

iG3X[X1~~~~~of dtoNoft. *mbd bo ft_wmtfWfibdmiwwd-v A

1w1 S S |Cdl f wa~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~o||Gr

INDONESIAMANPOWER DEVELOPMENT AND lRAINING PROJECT

Organlzaotknl Shuctur d RegWnl Manpower Oke

Hs.d d~ RsgIclMwvofolceI

Technod=Coonb

'DothCoilcton a t_

Smbn SBcfFn Secio Seo _c

F'h" 9& rf*f Ed_ P _ .of t_oavf P _ Pent _ Ope k_ Mdn _tf & YouW

M"C & | ab ihtef |.ck lolbRh|§

Sectio |mt m l & C"*hf seto

idalcln-27766 rw

MANPOWUR DEVYLOPHENT AND TRAINING PROJECT

Labor Market and Manpower Planning Informatlon Systems

Staff Training Fellowships: 1986/87-1991/92

Approx. no.of persons TraininR Fellowships - Man-years ,iy Year & Total

Nature and objectives of training trained l95bIui7 1957/58 1955/1' lYf/ I99U/91 1991/9Z Total

OverseasV.8. dip ow and KA/MSc courses (two years) 30 6 12 12 12 12 6 60and for two persons Ph.D. programs (four years) in manpowerplanning, labor economics and public administration - toraise the level of analytical, planning and managementcapacity for responsible staff of planning offices

Local wl oCurseas Diploma and KA/MSc courses in manpower planning, 42 0 8 16 16 16 8 64iaor economics, public administration - same objective asoverseas courses

Short Courses: 1-3 months: Specialist techniques Includingplanning; labor market analysis; survey and statistical techtniqueas;evaluation and monitoring; identification of training needs andtraining methodology fort

(a) Central and regional manpower planning staff of 1,000 20 40 60 60 40 20 240Kinistry of Manpower

(b) Staff of other ministries 850 10 20 20 20 20 10 100(Notes includes training workshops for users of outputs

of manpower planning)

Language Trainings Normally 6 months, for staff awarded 50 5 5 5 5 5 - 25fellowships for overseas training

INDONESIA

KANPOWER DEVELOPMENT AND TRAINING PROJECT

Labor Market and Manpower Plannina Information Syatems

Schedule of Consultant Services, International (Int.) and Domestic (Do*.) 1986/87-1991/92

Schedule of inputs (man-years)1986/87 1987/88 1988189 1989/90 1990/91 1991/92 Total

Task Int. Do.. Int. Don. Int. Dow. lot. Don. Int. Dom. Int. Don. Int. Dom.

Sentor Consultant/Tea. leader:

Design, developmnt and Implementationof planning systems. Advise on thestaff development program. Coordi-nation with BAPPENAS and otherministries. 1.00 - 1.00 - 1.00 - 1.00 - 0.50 - 0.50 - 5.00

Specialist consultants in labor market andmanpower planning to assist with thedevelopment and implementation of:

- evaluation and monitoring 0.25 - 0,25 0,50 0.25 0.50 0.25 0.50 - 0.50 - 0.50 1,00 2.50

- Identification of trainingneeds 0.25 - 0.25 0.50 0,25 0.50 0.25 0.50 - 0.50 - - 1.00 2.00

- labor market analysis andsignaling - - 0.25 0.50 1.00 0.50 0.50 0.50 0.25 0.50 - 0.50 2.00 2.50

- processing of labor mrketinformation - 1.00 0.25 - 0.50 0.50 - 0.50 0.25 0.50 - 0.50 1.00 3.00

Total 1,50 1.00 2.00 1.50 3.00 2,00 2.00 2.00 1.00 2.00 0.50 1.50 10.00 16.00

- 38- ANNEX 5Page 1

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Labor Market and Manpower Planning Information SystemsSchedule of Operations and Data Collection

1. Nature of Data

Labor market data, to be collected, analyzed and used through theproject will include the following:

1.1 Employment and Labor Force

1.1.1. Labor force data by industry and occupation

1.1.1(a) Present labor force1.1.1b) Macro level projections1.l.i(c) Labor force data by subsector, including

education, training, skills, salaries, presentand proiections, e.g.:

Metal work industry and subsectorsTettilesConstructionElectronics

Agri-business (foods and materials processing)1.1.1(d) Informal sector (including trade, services, small

manufacturing and home industry) - structure,activities, incomes

1.1.2. Labor market indicators

1.1.2(a) Qualitative indicators from development andoperation of ongoing programs (including pilotprograms) and from contacts with employers,trainers, etc.

1.1.2(b) Turnover and mobility of labor1.1.2(c) Employment, wages, hours of work and training1.1.2(d) Unemployment, visible underemployment and other

forms of under-utilization of labor1.1.2(e) Vacancies and placements1.1.2(f) Tmmigrant/expatriate workers

- work permit data by occupation, sector etc.1.1.2(g) Indonesian workers abroad-by occupation, sector

etc.1.1.2(h) Tracer studies of graduates from

project-component training programmes1.1.2(i) Tracer studies of graduates from other education

and training programmes.

-39 - ANNEX 5Page 2

1.2 Demand for Labor

1.2.1 Studies of operation of labor markets by occupation, sector,subsector etc.

1.2.2 Training implications of new investment projects (government,le--al/foreign/private) by region.

1.3 Manpower Supply

Information about intake, enrollment, output and cost, in relation tothe programs operated by:

1.3.1 Ministry of Education1.3.2 Ministry of Manpower1.3.3 Other government department training1.3.4 Industrial in-plant training1.3.5 Private training systems

2. Schedule for Labor Market and Manpower Information System Operations

2.1 The system will be developed through a phased program of operations, asfollows:

2.1.1 Existing national data collection and utilization willcontinue, with improvements in methodology and reliabilityand usefulness for manpower planning purposes. Much of suchdata collection is the responsibility of other agencies(e.g., the labor force surveys carried out by BPS) and inthese cases the Ministry of Manpower will play an advisoryrole.

2.1.2 Some new data and its analysis will be developed on a pilotbasis in only a limited number of regions and resultsmonitored before application in other regions and/ornationally. The key informants and other monitoring systemswill be developed in this way. Pilot studies will also beused to develop and improve survey methodology (e.g., in thecases of the informal sector and longitudinal studies of thelabor market).

2.1.3 Comprehensive regional labor market and manpower studies willbe developed - initially in three regions only - East Java,South Sulawesi and DKI Jakarta - and extended to otherregions in stages (Table I).

2.1.4 Industrial and occupational subsector studies will bedeveloped in key areas.

- 40 -

ANNEX 5Page 3

2.2 The objectives will be:

2.2.1 The collection and analysis of relevant data for thepreparation of manpower and training policies and nationaland regional programs for Repelita V, that is by 1989.

2.2.2 The development of a comprehensive national and regionallabor-market and manpower information system by 1991.

2.3 The schedule of operations and budgets will be reviewed annually.

INWON8SIA

IUNPOWIR DEVELOPtMNT AND TRAINING PROJCCT

Labor Market and Manpower PlanninX Information System

Schedule of Opnrationa by Nature and Reaion. 1986/87

1.1 Employment and labor force /a 1.2 Couprehmnuive1.1.1 1.l.2 Demand Supply regional

Province (a) (b) tc) (d) (a) (b) (c) (d) (e) (f) t8) (h) Mi) t1) (2 (l) (2) (3) (4) (5) studies

All Indonesia A A - A C C - - - - -C

Aceh North Sumatra - - - - - - - - - , - - - - -West Sumatra - - - - - - - - - - - - -- -RiauJaubi - - - - - - - - - - - - - - -South Sumatra - - - - - - - - - - - - - - -RengkuluLaupung - - - - - - - - - - - - - - -

DKI Jakarta A A 8 A 8 - - - - - 8 - - - B - 8 - - - bvest Java - - - - - - - - - - - - - - - - - - - - _Central Java - - - - - - - - - - - - - - - - - - - - -DI Jogyakarta - - - - - - - - - - - - - - - - - - - - -8ast Java A A B A 3 - - - - - B - - - - B - - - 3

West Kalimantan - - - - - - - - - - - - - - - - - - - - -Central Kalimantan - - - - - - - - - - - - - - - - - - - - -South Xalimantan - - - - - - - - - - - - - - - - - - - - -East Kalimantan - - - - - - - - - - - - - - -

South Sulawesi A A 8 A 8 - - - - - 8 - - - B - B - - - bSoutheast Sulawesi - - - - - - - -Central Sulawesi - - - - - - - - - - - - - -'North Sulawesi - - - - - - - - - - -

Bali -Nusa Tenggara Barat -Nuna Tenggara Tiaur - - - - - -Ialuka - -Irian Jaya - - - - - -

Timor Timor - - - - - -

/a Columns refer to activities listed in para. 1.

Key. A - Mainly advisory inputs to other agencies.8 - Studies involving new data collection and analysis.C * Studies based sainly on analysis of existing data.

INDONISIA

MANPOWER DEVEGLOPMNT ND TRAINING PROJICT

Training lKanageent and the National Training Syste.

Schedule of Consultant Servicea. Internatioal (Int.) and Domestic (Don.). 1986/87 to 1991/92

Schedule of tnPuts (man-years)Nature and objective of 1986/87 1987/88 1988/89 198i990 1990/91 1991/92 Totd

consultant service Tnt. Don. Int. Don. Int. Don. Int. Don. Tot. Doo. Tnt. Dol. lat. Dos.

ana sement of Trainitnanagme_nt develomnt and relatedstaff develoanti analysis ofmanagemnt syste_ - planning,iuplementation and monitoringof traioingg reco mndationson changes; iuplemntatiin;design of data base and Impl e-mentation of systems 1.0 0.5 l.S 1.0 1.5 1.5 1.0 1.0 1.0 1.0 0.5 1.0 6.5 6.0

Physical resource plannint and man-agamnts analysis of exzitingutilizationg rationali.ationand efficient utilization ofspace and equipmnt; design andestablishmnt of nonitoring system,staff training .'s 0.5 1.0 1.0 0.5 1.0 - 0.5 0.5 - - - 2.5 3.0 a.

PlISDIKLAT: Upgrading and extensionof traininR programs 0.5 0.s 1.0 1.O 1.0 1.0 i1n 1.5 0.5 1.0 - 1.0 4.0 6.0

Project Kanagezmnt OfficeDesign and establishment of plan-ning, mnagemnt, monitoring andreporting system and procuremntof goods and services / n.5 0.5 I.0 .1.0 0.5 0.5 - - - - - - 2.0 2.0

National Training SystemTraining policy and system,

Including Joint IndustrialVocational Training Schem 0.5 0.5 1.0 1.0 0.5 0.5 - 0.5 - - - - 2.0 2.5

establishment of occupational skillsclassification: skills standardsand tests developentj establish-ment of skills test facilities .O 1.0 1.5 1.0 2.0 1.5 100 1.5 1.0 1.5 1.0 1.0 7.5 7.5

Total 4.0 1.5 7.0 6.0 6.0 6.0 3.0 5.0 3.0 3.5 1.5 3.0 24.5 27.0

/a Staffing of Project Kanagemaent Office equivalent to total of 38 man-yeare of local conmultancies.

P-,

INDONESIA

NANPOWER DEVELOPMENT AND TRAINING PROJECT

Training Nanagement and the Rational Training Systet

Schedule of Overseas Training Fellowships and Local Training, 1986/87 to 1991/92

Number Total Schedule (man-years)Nature and objective of training or fellowship trained inn-years 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92

KanasmIent Develop nt (Training for staff of keyun a ot cantral mnistry and regional office.in specialist aspects of amagement)

Overseas ja

Postgraduate manageeent triining for selected cen-tral and regional staff 50 90 5 10 25 25 20 5

Postgraduate training for PUSDIKLAT staff 6 10 1 2 2 2 2 1

Manage8 nt training for selected bLI directors andsenior staff 40 20 2 3 5 5 3 2

a.Local

Short progreme in Management training (average 3months), Including approislately S5 senior SLKstaff 200 80 5 10 15 20 20 10

National Trainint Systeu

Overseas

Study tours for meabers of National and RegionalTraining Councils and senior ministry staff 30 5 1 2 1 1 - -

Study visits, short courses and assiRnments -JIVT, occupational analysis, testing 20 5 1 2 1 1 - -

Local

Training programs in occupational analysis, stan-dards, tests 40 10 1 2 3 3 1

Language Training

Locals Preparatory language training for staff to betrained overseas (up to 6 tonthi) 180 75 10 20 20 20 5 -

/a Overseas training includes an average of 3 months' intensive language training.

- 44 - MN6

INDONESIA

AwPOMEn PLANNINC AND VOCATIONAL TRAININC PROJECr

MintLtry of Hknpower: Senior and Middle leveL Staff 1985/86-1990/91

Actual staffin!!1985/86 Expect*d *taffins 990/91

Unit Total IV III IL Total - Y 1 rf II

SECRETARY GENRtAL'S OFFICEFureaua

Etwieu of PLanning 115 1 25 89 232 6 49 177Bureau of Personnel 122 1 13 108 239 5 38 196Bureau of Finance 104 2 17 85 221 6 42 173Bureau of International Relatlons 71 2 12 57 191 6 42 143Others 249 10 30 209 368 10 56 302

Subtotal 661 16 97 548 1,251 33 227 991

DIRECTORATE GENERAL OF MANPOWERDtvELOPHNT-Dtrector ates

Progrm development 57 4 19 38 99 7 34 58Sapply and placement of uanpower 78 5 24 49 120 7 38 75Labor intenaive and self employment 53 4 16 33 95 6 30 59DeVelcp.ent of vocational training 57 6 14 37 99 6 31 62Instructor and private training 36 3 10 23 78 6 30 42Othera 126 10 12 104 168 5 25 136

Subtotal 407 32 95 284 659 37 188 *32

DIRECTORATE GENERAL OF INDUSTRIALKILAILONS 486 23 95 368 597 37 114 446

Subtotal 486 23 95 368 597 37 114 446

CZNTRAL OFFICEOverse u employment 44 1 8 35 119 6 32 81Vocational training 76 5 17 54 147 7 38 102Natural productivity 79 1 26 44 142 7 44 91Reeearch and development 75 4 22 49 148 6 67 75Education and training 69 7 16 36 132 6 36 90Others 198 9 35 154 269 8 53 208

Subtotal 541 27 124 372 957 40 270 647

Aceh 430 3 44 383 822 15 133 674North Sumatra 640 4 104 532 1.032 24 179 829Weat Suitra 414 3 60 351 806 17 149 640Riau 341 3 53 285 733 17 143 573Jaubi 248 2 46 200 640 15 129 496South Sumatra 482 4 59 419 884 20 166 698bngkulu 274 3 34 237 666 15 129 522Leapung 369 3 52 314 761 15 132 614

Subtotal 3.198 25 452 2.721 6.344 138 1.160 5.046

DXI Jakarta 708 11 107 590 1.112 18 149 945Ilmt Java 938 4 145 787 1,337 34 242 1,061Central Java 1,412 11 222 1,179 1.813 43 298 1,472DI Jogyakarta 519 5 81 433 920 19 157 744East Java 1,189 13 171 1,005 1,590 39 263 1,288

Subtotal 4.766 44 726 3.994 6.772 153 1.109 5.510

meot Kalimantan 288 3 39 246 680 16 140 524Central Kalim_ntan 212 2 23 187 604 15 130 459South Kallantan 328 2 42 284 720 18 153 549East Kalimantan 397 5 53 339 789 20 153 616

Subtotal 1.225 12 157 1.056 2.793 69 576 2.148

SoLth Sula-eui 477 3 84 390 869 20 162 687Southeast Sulawesi 786 2 18 166 578 13 123 442Central Sulavwei 258 2 23 233 650 14 134 502North Sulawesi 382 3 60 319 774 16 143 615

Subtotal 1.903 10 185 1.108 2.871 63 562 2.246

Ball 321 1 52 268 713 15 128 570Nunn Teaggara Tiuur 215 2 22 191 607 15 131 461Nu" Tenggara Barat 258 2 24 232 650 14 126 510Maluku 258 2 32 224 650 14 128 508IrLan Jaya 370 5 26 339 762 17 146 599

Subtotal 1.422 12 156 1.254 3.382 75 659 2.648

Timor Tlmar 76 1 17 58 468 8 95 365

jubtotal 76 1 17 58 468 8 95 365

All Indonecia -Total 14,685 202 2,104 11.763 26.094 653 4.960 20.479

Annex 6.45 - Chart 1

INDONESLAMANPOWER DEVELOPMENT AND TRAINING PROJECTJoint Industidol Vocational Training (J.l.V.t.) Scheme

Joint iedusMt Voctinal Training Scheme U i

P,lot PrOect (MACE CoMporent) - Mech.; Auto.; Const.; Elect on Requesttmm industry

SD/"MP/ SIM Diect Industral UWorkoSSMA/SIM (with Piact Tig) Job Entrnts of STM/TrC Groduates

--- 3/Cm---_ ____--Cm -_m__ __ bnCm--- ---- Cm---BIK Indusiry BL( K r mustr BLK/hd

Basic Camnmon Tech.j - SpecificMechanical Scits Mach. Sidil Trg.

Foundation l lModulesTwrining or Basic Training in Autmobi TwdeEquivalent C:ommo=n Autom-obie inciJtrV OF Trode

TheoMr/Pitctce Sdlls & |- InRx Test I h'C' Ito Reach ir l roH g B' Sectr Co9ucffon Prep. Tirinng Exper

Entry Requkement _ Const. tlon

I Bectncal Elctrical1

intewrndc -In lenrAdncedTwade Trade Test Trade Test

q q , Tesr r:r Tst

Cort. FohundaIon Tn oxrmr SefT-fSICl1d Skilled SpecialistSelection Test Sector Self Emplaomewt Erovwrment SidlUs

Cenflcafion

R oiO sim Module BacSic Sk O Occupational Occupationalpicfte Scidl NModube Skdll PctiWe |

Woticl Bonk-27765

AMuI 746 - Table I

tNDONESIA

MANPOWER DEVELOPMET MND TRAINrIC PROJECT

Upnradint of Training

Vocational Tralning Centers - ILX - Enrollmnt Tartets. lq85/86. by Main Skill Area

Total Agricultureenrollment Automo- Macha- Construc- Elee- Comer- Seere- Mliscel- (or &gric.(19R5/86) tive nical tion trical Welding cial tartal Laneoau engineering)

Sumatra

Aceh 340 20 20 20 20 20 80 60 100 -Medan 1,000 120 100 100 120 60 100 100 300 -

Padang 600 so 40 60 s0 20 140 60 120 -Pakan Baru 440 60 60 40 60 40 40 40 100 -

Jambi 180 2n 20 20 40 - 20 20 40 -

Palembang 1,200 200 100 140 200 100 120 - 340 -

Bengkulu 400 40 20 40 40 20 80 - 160 -

Laupan 200 20 20 40 20 20 - - 80 -

Java

Pasar Rebo 1,7nO 10 180 2R0 380 100 140 100 340 -Condet (Welding) 240 - - - - 240 - - - -

Bandung 1,860 120 100 100 100 80 400 120 840 -Lembang (JLbP) 600 - - - - - - - - 600

Togakarta 600 120 100 120 120 - 180 - 160 -lanpok (BICP) 600 - - - - - - - - 600

Surakarta q00 120 40 40 120 2n 10 140 240 -Semarang 1,300 140 140 40 140 140 200 100 400 -Singosorl 760 100 80 60 Ro 60 s0 - 3no -Surabaya 780 140 60 80 140 40 60 60 200 -Vonojati (BLKP) 300 - - - - - - - - 300

Cilacap 740 100 80 20 100 ino 100 40 20o -

Kalinntan

Janjarbaru 8no 100 100 60 1on - 120 - 22n 100Plk. Rays 260 40 40 40 40 40 - - 60 -

Samarinda 440 60 60 60 40 40 40 40 40 60Pontianak 520 80 60 8n 80 60 80 - go -

Sulawesl

Ujung Pandang 640 100 40 60 80 120 12n - 149 -

Palu 500 80 60 60 so 40 80 - s0 -Kendarl 420 RD 40 40 60 40 60 - 100 -

Bttung 700 80 80 80 120 60 ao 80 120 -

Bali - Denpasar 1,320 200 S0 - 200 60 200 60 520 -

Musa Tenggara Bsrat -Mataram 600 100 - io 100 60 1no 40 100 -

Nona Tenggara Timur -Kupang 260 40 60 20 4n 2n 20 - 6n -

Maluku - Aabon 500 60 - 40 60 60 80 - 200 -Irian Jaya - Jayapura 300 40 40 20 40 40 40 20 60 -

Total 22,200 2.640 1.820 1.820 2,800 1.700 2.940 1,080 5.700 1.660

INDONESIA

H A OWER DEVELOPNENT AND TRAINING PROJECT

Uparading of Trainin

Schedule of Consultant Service., International (Int.) and Dometic (Dos.) 1986/87-1991/92

Schedule of inputs (meneare)TSaks 1986/87 1987/88 1988/89 1989190 1990/91 1991/92 Total

Tnt. Dom. Int. km. O Int. Dan. Int. Dm. Int. Doa. lot. Doe. let. Do.

Design. Implementation and Monitoring of New Training Modules:Basic. Advanced and Sgecialist 2.5 2.5 6.0 4.0 6.0 6.n 6.0 6.0 6.0 6.0 3.5 5.5 30 30Curriculum development, preparation of training naterials andImplementation of training program for selected occupattonsin the _talo and related manufacturing Induatry, textilesagricoltural products processing and construction industries.

Instructor Trainins 1.5 1.0 1.5 1.5 2.n 1.5 1.0 1.5 1.0 1.S 1.0 1.0 8 8Instructor training program and curriculum development,traning materials, methoda and facilities.

In-plant Training. Supervisory Training and Productivity 2.0 2.0 4.5 3.0 4.5 4.0 3.0 4.0 3.0 4.0 2.0 4.0 19 21Design and Implementation of training support system forIn-plant training including the Industrial DevelopmentTraining Units and design and isplematation ofsupervisory and productivity training and upgrading ofconsultancy services and related staff development.

Training for Self-plom%nt and the Intorml Sector 1.0 1.0 1.0 1.5 1.0 1.5 1.0 2.0 1.0 1.0 - 1.0 5 aOlysts of need. and design and Implementation of training forself-employment and selected occupations In the informalsection.

Mobile Training Systems 1.0 1.0 2.0 1.5 1.5 1.5 1.0 2.0 0.5 1.0 - 1.0 6 8Analysis of needs and design and implemntation of pilot mobileand open training programs, Including follow-up and evaluation.

Language Trainitng To strengthen local facilities 1.0 - 1.0 - 1.0 - 1.0 - - - - - 4 -

Total 9.0 7.5 16.0 11.5 16.0 14.5 13.0 15.5 11.5 13.5 6,5 12.5 72 75

1I I

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Upgrading of Training

Schedule of Overseas Pellovehips and Local T-raining, 1986/87 to 1991/92

Approx. no. Man-years Schedule of traininB and fellowship. (man-years)Nature and objective of training fellowship of persons total 19abI87 19a7f6a 198 dasy 1989a9u 199U/91 illIYZ

Overseas Training Fellowships

Instructor TraininitS1ILIs upgrading and instructor trainingmethod for staff of instructor-training programs 3n 15 2.0 5 5 3s0 - -

Specialist skills training, industrial assign-moents and training methods for BLK sectionheads and other senior staff upgrading (six-month to three-year courses and study visits) 100 195 5 20 35 45 45 45

In-Plant TraininR. Supervisory Trainingand rod-ucttvttyTranlntg anT ndustrial assignments overseasfor industrial training development officersof ITDUs and Courses in productivity, industrialengineering and supervisory studies for staff ofNational and Regional Productivity Centers 30 20 3 5 5 3 2

Self-Employ ent and Informal Sectorirainng assignments and study visits 5 3 0.5 1 0.5 0.5 0.5 -

Mobile TraininRTraining assagnments and study visits 5 3 0.5 1.0 0.5 0.5 n.5 _

Lanitute TraininLtpgradingsor -anguage teachers 4 2 0.5 1.0 0.5 - - -

Local TraininRLTali Trainiing and Basic Instructor Training,

including upgrading ror existing stafr tsixmonths to two years) 1,500 2,000 200 300 500 500 300 200

Lanagaze Trainiin8 preliminary training (nor-mall six ontne full-time) 240 120 20 30 30 2n 20 -

- 49 -

ANNEX 8Page 1

INDONESIA

KANPOWER DEVELOPMENT AND TRAINING PROJECT

Project Management

General

1. The main features of the system are:

(a) the Secretary General of the Ministry of Manpower will have overallresponsibility for the project and will chair an InterministerialSteering Committee.

(b) the Director General of Manpower Development and Placement will actas vice-chairman of the Steering Comittee and chair a TechnicalCommittee.

(c) a full-time (sole-job) Project Director will be responsible formanaging the coordination of implementation of the project andadministration of the 'oan with the assistance of a ProjectDirector's Office with heads of coordinating units working full-timeon the project;

(e) responsibility for implementation of project activities will beassigned to the appropriate units of the Ministry, i.e. thedirectorates, central offices, etc. Staff of these units directlyresponsible will be assigned to teams as full-time counterparts toconsultants.

2. The proposed structure for the management of implementation is shownin Chart 1.

Functions and Responsibilities

The Steering Committee

3. The Steering comittee will comprise:

The Secretary General (Chairman)

The Director General of Manpower Development & Placement (ViceChairman)

The Deputy Chairman kManpower) of Bappenas

The Director General of Foreign Monetary Affairs of Ministry ofFinance

The Director General for Budget, Ministry of Finance

- 50 - AM= a

Page 2

The Project Manager (Secretary)

The Steering Committee will be directly responsible to the Minister ofManpower and will:

(a) coordinate the policy and decision-making of the agencies relevantto project implementation in order to minize delAys inimplementation;

(b) review for approval overall plans for project implementation inaccordance with agreed policies and project objectives;

(c) recommend the allocation of loan and domestic funds;

(d) guide, monitor and evaluate project implementation;

(e) report regularly to the Minister.

The Technical Committee

4. A Technical Committee has been established, consisting of:

(a) The Director General of Manpower Development and Placement(Chairman)

(b) The Secretary of the Directorate General of Manpower Development andPlacement

Cc) Head of Bureau of Manpower, BAPPENAS

Cd) Director for Foreign Monetary Affairs, Ministry of Finance

(e) Director of Project Budget, Ministry of Finance

(f) The Director of High Skill and Vocational Training Development

(g) Director of Instructor and Private Institutes Development

(h) Head of the Vocational Training Center

Ci) Head of the National Productivity Center

(j) Head of the Education and Training Center

(k) Head of Public Relations Bureau

(1) Head of the Personnel Bureau

(m) Head of the Research and Development Center

(n) Director of the East Java Regional Manpower Office

- 51 -ANNEX 8Page 3

(o) The Project Director (Secretary)

5. The Technical Committee will bring together the senior staff respon-sible for implementation, together with staff of central agencies, to coordin-ate project activities and establish guidelines and procedures in order toassist efficient project implementation. Its functions will include:

(a) development of work programs and plans and allocations of resources;

(b) advice on assignment of responsibilities and allocation ofresources;

(c) monitoring and evaluation of progress.

Development Budgets (DIP)

6. The Development Budget for the project will be allocated to eachdirectorate, or central office for the project related activities financed byRupiah counterpart budget for which the unit is responsible. Loan-fundedInternational Competitive Bidding will be administered by the ProjectDirector's Office.

The Project Director

7. The Project Director, assisted by the staff of the ProjectDirector's Office, will be responsible for the following:

(a) coordination of the preparation of annual plans, identification ofresources required and preparation of overall budget;

(b) preparation of guidelines (manual) for administration of theproject;

(c) coordination of project activities and provision of support to staffof technical units involved in project administration;

(d) organization and appointment of special teams or work units forproject planning and implementation according to need;

(e) coordination of project activities with functional activities of therespective units in accordance with COI policies;

(f) procurement of all goods and services under international competi-tive bidding procedures, local consultancy and training services andgoods procured centrally under local bidding procedures. This willinvolve preparation of bidding documents, specifications, evaluationof bids, contracting, and arrangement for delivery and installation;

(g) coordination of the preparation and implementation of annualinstitutional and staff development plans;

-52 - ANNEX 8

Page 4

(h) administration of overseas and local training fellowship schemes, incollaboration with PUSDIKLAT;

(i) administration of consulting services;

(j) establishment and implementation of monitoring and evaluation proce-dures, including preparation of monthly and quarterly reports forthe Technical Team, Steering Comittee and Minister of Manpower;

(k) loan administration, including reviews by the Bank and maintenanceand supply of all records and reports as required under the LoanAgreement; and

(1) cooperation with other agencies on matters related to projectimplementation.

The Project Director's Office

8. The structure of the proposed Project Director's Office is shown inChart 2. The functions of the units will be:

Administration

(a) office administration;

(b) to maintain relevant records and prGject documents;

(c) to provide administrative services to all the project executors;

(d) to prepare administrative guidelines and manuals for the implementa-tion of project activities;

(e) to maintain inventory lists; and

(f) to prepare regular reports on all project activities.

Treasury

(a) to prepare schedules of payment to agencies, required for projectimplementation;

(b) to prepare all documentation needed for payments related to projectimplementation;

(c) maintenance of project accounts in accordance with WOI and Bankrequirements; preparation of monthly, quarterly and annual financialreports; preparation and administration of timely Bank-loanreimbursement;

(d) to prepare necessary documentation for accountability and present toother agencies according to existing regulations;

- 53-

-53 - ANNME 8Page 5

(e) to prepare financial reports in accordance with Government and WorldBank requirements.

Manpower Area Coordinator

(a) To coordinate project activities in the manpower planning fieldbetween the responsible units in the central Ministry and theRegional Manpower Offices;

(b) to prepare comprehensive plans;

(c) to support the techrnical units involved in implementation and tomonitor progress.

Training Area Coordinator. To serve a similar function with regard toproject activities in training.

Staff Development and Training

(a) to coordinate staff development and training activities under theproject between the various units including PUSDIKLAT;

(b) to assist with arrangements for selection and placement of staff intraining;

(c) to maintain records of training and follow-up.

INDONESIAMANPOWER DEVELOPMEN AND TRAINING PROJECT

Impbmenhtbn Respofu4lIfful

ReMon to La"o

*0~~ ~ ~ mwgff -fAdW4tft f Mwc* 1mmDt

I I I -~I l I u K x l I I..

LawborMa* & MAn & BLK hwfoneta a In h4 ADb_y& ff l 7fSe7 _t air_ormP

X I I [tII klk Ex0go d

Stan

UNIS EtlAon d F rb

YAM t *-30M92

INDONESIMANPOWER DOIOPMENT AND 1MANING PROJECT

The Pct DDicoOs le

M~~pa~~ Ama] ~~~ Awo 7~~ F7 ftDousml

C toCI dO IU'

~~~~~~~~~~~~~~I

CodnallInof

C dCoa,dnbin do Cactnorlon d Pfunldnt PdR*p ActmtI"dAuz tDim " DAkr.nts Gook & sgrvo= Amu

Pv*ng. hcJu P"fIm k= 4*v & TM" Md*V m RubuuTh idooh Mangeht fla DocHnmtlon Ffa Repo!

ah tw Lad w Non9ttonr Ca*odhhimbtfn _Iarnmn Salecto Arluigu,nn

MorVtw8g & mc1toiffl & PIKnut &Ebon E-

(h ~.*mcflo3

.Cdd I*-30195 1

~Ei 1111 Ll 1 1

t--_______ S 0 0 0-Hs s

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

INDONESIAMANPOWER DEVELOPMENT AND TRAINING PROJECT

Location by Province of Principal Project Activities

LABOR MARKET MANAGENT NATIONAL SKILLS NEW INDUSTRIAL SUPERVISORY SELF-6 MANPOWER SYSTEMS 6 & REGIONAL TEST UPGRADING INSTRUCTOR TRAINING AND EMPLOYTMIT HOBILE

PROVINCE PLANNING STAFF TRAINING CENTERS OF TRAINING DEVELOPMENT PRODUCTIVITY & INFORMAL TRAININGINFO. SYSTEMS DEVELOPMENT COUNCILS TRAINING FACILITIES UNITS TRAINING

Aceh * * * *North Sumatra * * * ** * * * * *West Sumatra * * * *Riau * *Jambi a a a aSouth Sumatra * a a a aBengkulu a a * * *Lampung

DKI Jakarta ** a ** a ** aWest Java * a a a ** a aCentral Java a a a aDI Jogjakarta a a a a aEast Java a * ** ** ** ** ** **

West Kalimantan a a a aCentral Kalimantan a a a aSouth Kalimantan a a a a aEast Kalimantan a * ** ** a* a a ** a*

South Sulawesi aa a a ** a a ** aSoutheast Sulawesi a a a aCentral Sulawesi a a a aNorth Sulawesi * a * *

Bali aNusa Tenggara Barat a a a a aaNusa Tenggara Timur a a a aHaluku a a a *Irian Jaya a a a aTimor Timur a a a a

National ** a ** ** ** aa

a Planned location of activity under project. _..** Planned activity during first year.

- SD -

IMX=BtA ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~£ue

MMPEIUKR DDWPHEHT AND TRATNIHOC M30lC7

Critical Activittes and Dates

Item Prlor to effectiweneaa Ftirt year (13906//7)

Hnmassent and organization

gatabliahbnt of: 11131 Agrement with Boak on: tsks and actiyiciee,Project Cirectors Office tilmtables. organltionai structur stafftnxg

budgat for 1063637

01/36 fAtablismnt of office by decree

12/R5 Selection of Proeict Director

Appolntssnt of Project Director. Treasurer.Manpowr Area and Training Ara Coordinators,Staff Davelopaet Coordinator, Procurammt-Officer and Adainistrative Head and arrasgemeta for lAnguge traintnn of staff.

Ussimntltn of project implamentatien 12/as Dsignation of kay staff and project responsi-raspoasbilitiss bilitie in each directorate- subdirectorate.

Central office - identification of counterparttease for each censltancy input

bitabiishent of Steering CaLttaee ni/Rh Conflrm to Dbnk constitutton and mebershlpand Tehecal C4ittee responsihilltls

Program of activities 196/87 and budget 01136 Establisbmnt of Conmettees by decree. n32/3 Cosfirestion of budget for IM1S7Confirm to Hank protrm of activiltes andbudget for 13086/7 and. with WDPF.A and Mu-lstry of finance support

Thchicel Assistance:;rabaya Regional Progree 02/36 Conftrm agremsnt to Bank on projet utilne, n6/6 Consultante identified by IUI and appoltnnte

including outilne lmRO Of consultants. te- agreed with COItable of actlvittes. fellowship trainingoveral budget (1986-39) and budget for first 06/36 Project docment ready for signtureyar

lOI16 Fist-stag eoneultants In poet

Functioal peckhae of conultant 03116 Confirm to Dank: term of reference andervices packgIu,g

Labor market and fnper Informtton Criteria for abort-listinR Initial short-flat MM/6 Invitations to bidSystes and other biddIng docnmnts

071/36 Selectlon of conultentsHanagest arst_m and physical andstaff dv1opmnt 10/36 Awpointment of consoltants

Upgrading of training: 12/16 Inception resorts agreed with Minietry and DashA-Upgrading so advanced and spe-

cialst sodule; instructor train-iUs; suwervisory training

U-h-plant traingC-ibble tratinngD-Trrlsing for *elf-employsent

langog training (for etaff)

Staff training fellowshipsOersa trainig fellowhips W 3/6 Confirm to Rnk loal nd oversas arranuoants nia/U Selection of tintial batch of stcaf fer fellow-first entry above for overees for placsent ad tdentificatlon of potential ships 1986/87 and confirmation of errase_eotstralsngL office sod langug trelnlng) training place_mnts for 1466/R7 for langease trainina

local traintang fllowshLps n06/6 Selection of initial hatch of staff for locAlFaIlowehipe 1986137

Phsical FailititeIaildioge o'ngs AppoA_ineot of consultants for lon-tatrs physi-

Cal faclitties plonning

01/a?7 nDsin for lttial phase of aptatlons

n23/R7 Did docuents for fist phase

Iqoip_ntComarting et (phas 1) 01/?7 Detailed spectifictions. Agre_ent on vrocere- 0IR? Rid documnUts publiehed

sent procedure with SEIXHEW3VRi F.alustion of bids

06/?7 Award of contract

Teaching oquipment (al1 components) O5/DO6 later equiP_ent list, for replacesent. hsnd 01/37 IRid docuents for lattlal equipnt Itst to-tools and transfer of equipment for inittal cludion spectficationscenters (including proposed Instructor-trmlningftctlitles)

-~~~~~~~~~~~~~M 6

MANPOUW iitVELOPiUil AIM0 TI6AINIE PROJUCT

I rlotsariia output nitriss lIndleat.r

Clpnant and activity wctd outrca_ at eplsti oe Imported mitre.. tIlml

Labo noto and_ n,w

Rot.1,19know of InforstLOn latsllotian. cfaiaolioni. Red operation of cooptor imIatIltion. cnt-laaieiaa and operation of cooput-reato sotens, *- s1i regai... ayt.m in J.borto. pat J."sad oth Su

Stafl devrls t eace.asl ospletio of trlina In t anoroerpl.oniln. labr sconosico and publie odminiatra-

vOmNas 21 MAINS A P.R. dtpla_s: 2 PhI (all G candidates under trinina a In HPN courss

tLoalt 42 AINS A P.R. diploonsfbi Eatbliaimnt of program of abort spect-ilit

traimian. Inmludias arcoful Coeptets of the -*.1-loalns

I. Ministry of apower atoll (*bl) 2n Nintitry stall tra_d In *sort casios.SO atol . t other sdtatries In abort sptcil- MbI) 10 atalf of tber sisitmris trained In sbhrttat couuo. cersesB.

Lober-erl,at atadies sd Ca Iproved lobor rhet. aepisynat Rso trataine (a) aslysia of existing nstional and rIeual va-planing operations lafoemtin sad clletioa. analysis sAd disasi- too.. i1aIis of syats.

satiss sstoos.tb) aotoIsl atadis. taclutat fsponer oS _sslen- tbl Stadtia of labor fore. afeml sactor.

sno Infoauation for Sepalita V pttionl sd expatriate and oftr o taler.progreo.

C.) Sasntol a oie 12 proewoe. cl Oogtssal studio of labor _rbnto onplnyosst *ndtrteesa is Jaharta. East Jas sad Smith1ulussit.

Hlaesvost as Mattosal Train-

tI!Tii of onsagoedt ipgroded yatso fer:Col plsnasns. tinluding traIdni pmnr-c Coss-ltota. in Posts. inception rports prepared,(b) alloeatiao of resrcee and budgetla: Prioritiee Idsttfied tork program agreed.(C) phyalcal fetilittes stillation: sad C.) A-aysis of physieal Iscillties atiltsatten in(dl sonitarian and feedbrck. lOt of 5Bi'. pates .sablihed.

lZproad efficieutny of ocilitis utilIstton rsiad to 7n1 throgut LiMo. Fatilitin stitisatieo inpr d to 1! is at lent teouatilitatian of focilities ILto ([skhrts sa Sorobsys).

Nasomnt inforaction sys- Installtion. tomiosicatai sad opertl of satas nalaa of operatieso. deain of dot boos.tam Is central offie nd in 1rgiom.

Monagneast atall traiing ta) Upgrsdiag of PUlinilATs* staff tre d ovras (C1o One at ff __er unRdr tra"lao.-'elitis (oil consultant Is peat to tnotat With antesast

traaiois pmrogamTramtag prograsm Ca) t-°I ast ttintg for 20 staff.

(b) Scresful copletion of traisti sI Overe1as: pntgCrasdte _nsaguesot for tea- (bi) S staff udrtaking trainint.

tral and reIonal etrAf2 Skudy tour for 30 TrWaist Cussell (h) 12 .. _ralataf on atdf twigs.

ataff sod __nr.3 O usnaganet trainig for IIU (bi) S Ut directors trainS.

dlbe

l1cs lTM enioer stall 1i soirt snwassst s t,bS) 12 staff trained In abort progsra.spetalt c-us

Projett Directors Offite Ca) ffie etablished. Cs] Full staff is pst.lb) *snasest sad rap riTng stats net up.

Ch) Efficient aet-amotablissd.

natAblish ocupeteosal e-tn- Ca) Occupatiool stoadard. *akill atndrds and tonts Ceosaltnt in pot; swtes ontabliahbd for rsvloe ofdard-, till tandrds. e_tabiihod in priority indentrIaI suboeetors nd exttln *tandarda ond stbltsiint of tiles sr,cats ad te"t Facilitiea aoupations. derds.

(b) kills test fcilitti otblisbed tn & pr_in-

National Training Syst MNtionfal traning policy onblihd. Consaltants in poot traising policy onlyed: BseJoitt lsdatrla Tocatinel Idontiftids J= d;stind for bHte _ebsoicalTating thrMn fVT) tr ade.

Uradity of TrainingrAtatbliamsat or advanced e tablilsbot of advanced add "ecslitat trainin Cosnaltants ti pot. & advasod tr ainin nhil-asRd specialist tills tris- nodules with anual anrll_nt of 20.000 trainees. established.

Stfll tratning/ataft dowel- (Col M trainins fatilities established ti A ElK and Ral) Falitiso established tn 2 SiRs 5 stoff inopnr pgraded in 6 Kits traning oversas.

(62) The-yar rsttng pretres etablished.(b) Ut staff tratiias

I &_rusess Ioni trane is secalist program. (bi) 1 staff nrolled In twins_ aarvose.2. total: 1.500 taild ti six noth t, t_i-yesr (h) 200 *erollad in oiaanth to tea-yr Program.prgram.

UtsbItshasnt rd In-pist C) ig 2ndstrll Trtdnia eiopseot Unite MtrM) (l Consultants in piae two its out up. 2 stafftra1ini. rv o-blid. is tratning oversas.training and prdottity (b) la-plntm tralsig establisbed in 6 prowats for Rb) In plnt traininge tbliahed in R firm.

appronioste S .000 treinona par year.(C) Outeam nd acost mOatered to prrtde dta for

plenaing.(dl ser_enghed netitnal and S rotunal prod tivity Cd) Consultants in pet to donsst wth upg"rdin of

conmera. trainns and toneoltacy srvie.

SsIf-suplay-t and Infre-l Ebablisiont of trainig is In provinces. nOtoes Coasotltts is plates sslysis of sotation training:training and teats iitord to provide datA fr planning. etbli tnt of Initial tranoi prowes is a

praviee.

Hab,ts and open tronIngI tetahl.le, nt of initial trainin in 4 provinces. totblabent of Initial training Prnnr_as inhttrses asnd tat amitoed to provide dts for * p.nviaces.

dousning

- 60 -AMMM 10Table 1

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Sumary of Consultant Services - by Component and Year

Consultant Input (Han-years)-Program: Component International

Domestic 1986/7 1987/8 1988/9 1989!90 1990/1 1991/2 Total

Labor Market and Manpower PlanningChief adviser/team leader I 1.0 1.0 1.0 1.0 0.5 0.5 5Specialists (short-term) I 0.5 1.0 2.0 1.0 0.5 - 5

D 1.0 1.5 2.0 2.0 2.0 1.5 10

Management of Training and National Training System

Management of Training and Staff Developgent

Management systemsincluding physical facili-ties utilization andproject management office I 2.0 3.5 2.5 1.0 1.5 0.5 11.0

D 1.5 3.0 3.0 1.5 1.0 1.0 11.0PUSDIKLAT upgrading I 0.5 1.0 1.0 1.0 0.5 - 4.0

D 0.5 1.0 1.0 1.5 1.0 1.0 6.0

National Training SystemTraining councils, policy I 0.5 1.0 0.5 - - - 2.0aspects, apprenticeship,JIVT. D 0.5 1.0 0.5 0.5 - - 2.5

0capational analysisskills standard, tests I 1.0 1.5 2.0 1.0 1.0 1.0 7.5and test facilities D 1.0 1.0 1.5 1.5 1.5 1.0 7.5

Upgrading of Training

Skills training-advanced I 2.5 6.0 6.0 6.0 6.0 3.5 30.0and specialist modules D 2.5 4.0 6.0 6.0 6.0 5.5 30.0Instructor training I 1.5 1.5 2.0 1.0 1.0 1.0 8.0

D 1.0 1.5 1.5 1.5 1.5 1.0 8.0Inplant training, super- I 2.0 4.5 4.5 3.0 3.0 2.0 19.0visory training and D 2.0 3.0 4.0 4.0 4.0 4.0 21.0productivitySelf-employment/informal I 1.0 1.0 1.0 1.0 1.0 - 5.0

D 1.0 1.5 1.5 2.0 1.0 1.0 8.0Mobile training I 1.0 2.0 1.5 1.0 0.5 - 6.0

D 1.0 1.5 1.5 2.0 1.0 1.0 8.0Language teaching I 1.0 1.0 1.0 1.0 - - 4.0

D - - - - - _ _Totals I 14.5 25.0 25.0 18.0 15.5 8.5 106.5

D 12.0 19.0 22.5 22.5 19.0 17. 0 112.0

-61- Annex 10Table 2

INDONESIA

MNPOVER DEVELOPMENT AND TRAINTUG PROJECT

Summary of Staff Training Program. - by Component and Year

-Training Fellowships (Man-years) -

Program: Component OverseasLocal 1986/7 1987/8 1988/9 1989/90 1990/1 1991/2 Total

Labor Market and Manpower Planning

Diploma/WA/Phd in labormarket analysis 0 6 12 12 12 12 6 60

Diplom/MA/ in manpowereconomics L - 8 16 16 16 8 64Short courses:

Ministry of Manpower L 20 40 60 60 40 20 240Other Agencies L 10 20 20 20 20 10 100

Language training L 5 5 5 5 5 - 25

Management of Training & NationalTraining System

Postgraduate Diploma/MAtraining for Ministry staff 0 5 10 25 25 20 5 90

Short courses in managementfor ELK directors & othersenior staff 0 2 3 5 5 3 2 20

Training for PUSDIKLAT staff 0 1 2 2 2 2 1 10Specialist managementtraining L 5 10 15 20 20 10 80

Short courses/study visitson national trainingpolicy, aspects 0 1 2 1 1 - - 5

Short courses/studyvisits on occupationalanalysis, etc. 0 1 2 1 1 - - 5

Training in occupationalanalysis, standards,testing L 1 2 3 3 1 - 10Language training L 10 20 20 20 5 - 75

Upgrading of Training

Training of instructortrainers 0 2 5 5 3 - - 15ELK staff upgrading 0 5 20 35 45 45 45 195Productivity/supervisory

inplant trainingassignments 0 2 3 5 5 3 2 20Self-employment/mobiletraining assignments 0 1 2 1 1 1 - 6

Language training(language teachers) 0 0.5 1 0.5 - - - 2

Instructor training L 200 300 500 500 300 200 2,000Language training L 20 30 30 20 20 - 120

IWDONESIA

MANPOWER D EVLOPYENT AND TRARINIG PROJECT

Conaultancy Services International (I) and DoeAstic CD) - b Package and Year

Package 1986,7 1987/8 1988/9 1989/90 1990/1 1991/2 TotalI D I D I D I D I D I D I D

A. East Java Regional ProJect (UNDP/ILO)Managecant development (regional) 1.5 * 1.5 a - - - - 4 *Training system, skills, instructor. 4 * 5,5 * 3.5 * - - - - - - 13 *

Inplant & supervisory training 1 * 2 * I * - - - - - - 4 aMobil training 0.5 a I * 0.5 * - - - - - - 2 *

Subtotal 7 * 10 * 6 * - _ - - - - 23 *

1. Labor Market 7 Yanpower Planning SystemChief advimer/team leader I - I I - I - 0.5 - 0.5 - 6 -

Special consultants 0.5 1 1 1.5 2 2 1 2 0.5 2 - 1.5 4 10

Subtotal 1.5 - 2 1.5 3 2 2 2 1 2 0.5 1.5 10 10

C. ManaRement and Staff Development 1 2 3 4 2.5 4 2 3 2 2 0.5 2 11 17

D. Training System, Training Modules. Instructor TraininRPolicy, occupational analysis, skills tests 0.5 1.5 1 2 1.5 2 1 2 1 1.5 1 1 6 10Skills training 1.5 2.5 4 4 6 6 4 6 4 6 3.5 5.5 23 30Instructor training 0.5 1 1.5 1.5 1.5 1.5 1 1.5 I 1.5 - I 5.5 8

Subtotal 2.5 5 6.5 7.5 9 9.5 6 9.5 6 9 4.5 7.5 34.5 48

E. Inplant, supervisory training 6 productivity 1 2 3 3 4 4 3 4 2 4 2 4 1S 21

F. Self-eeployment & Informal training 1 1 I 1.5 1 1.5 1 2 1 1 - I 5 8

G. Mobile training 0.5 1 1 1.5 1 1.5 1 2 0.5 1 - I 4 8

Language training I - I - I - I - - - - 4 -

Total 106.5 112

* No separata package for domestic consultants for thie regional aubproject: services to the regional project will be included in the functional packages I

to G. l!1I

INDONESIA

MANPOWER DEVELOPMENT AnD TRAINING PROJECT

Project Costs bY Cate ory and Couponenttua MUS lltony-

Ungrading of trainingIn-plant

Training manhgement & training,national traininR systen super-

Labor market Natl system Vocational visory Self-& manpower Strengthen occupational training training employment

planning infor- training standards 6 programs Instructor and pro- & informal Mobilemation systems managaemnt tests (ELK) training ductivity sector training Total

Civil works (includingprof. services) - - 0.50 2.5 0.4 - - - 3.40

Furniture, equipment & books:Furniture - - 0.05 0.23 0,04 - - - 0.31Computers 1.33 1.11 - - - - - 2.44

Training equipment & books - 0.50 0.40 6.66 - - 0.50 0.40 8.46

Subtotal 1.33 1.,61 0.45 6.89 0.04 - n.50 0.40 11.21

Technical assiatance >

Consultants w

Domestic consultants 0.36 1.44 0.36 1.08 0.29 0.76 0.29 0.29 4.86

International consultants 1.32 1.98 1.25 3.96 1.58 2.51 0.66 0.79 14.06

Subtotal 1.6R 3.42 1.61 5.04 1.87 3.26 0.95 1.08 18.92

Fellowships:Local fellowships 1.n2 0.37 0.02 - 4.85 - - - 6.27

Overseas fellowships 1.65 3.25 0.28 - 5.78 0.55 0.08 0.03 11.61

Subtotal 2.67 3.62 0.30 1 10.62 0.55 o.ns 0.03 17.87

Total Technical Assistance 4.35 7.04 1.91 5.04 12.50 3.81 1.03 1.11 36.79

Prolect-Related Operating CostsSalaries *nd Allowances 1.21 1.39 1.17 1.02 0.62 1.22 0.09 0.09 6.81

Materials 0.62 0.64 0.65 0.58 0.15 0.60 0.09 0.09 3.43

Travel 0.39 0.66 0.15 0.15 0.07 0.15 O.06 n.06 1.7n

Other 0.92 1.02 0,44 0.44 n.15 0.67 0.09 0.29 4.01

Total Proiect-Relateduperating Costs 3.14 3.70 2.40 2.18 1.00 2.64 0.35 0.54 15.95

Total Base Cost 8.82 12.35 5.26 16.61 13.93 6.45 1.90 2.05 67.35

Physical contingencies 0.66 O.RR 0,43 1.41 0.77 0.45 0,14 0.15 4.89 ' '

Price contingences 2.40 3.17 1.38 4C17 4.34 1.94 0.48 0.53 18.41 I g

Total Project Cost 11.89 16.41 7,07 22.18 19,04 8.s4 2.49 2,72 90.65 _ _

-64 - ANNEX 11Table 2

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Prolect Expenditure by Component and Year(Annual Expenditure Including Contingencies)

1986/87 1987/88 1988589 1989/90 1990/91 1991/92 Total costs- (Rupiah billion) Rp bln USS eln

Labor Market 6 ManpowerPlanning Informacion 1.3 3.1 2.6 2.3 2.2 13.1 13.1 11.9

Trainint Management andNational Trainlng SystemStrengthen management oftraining 3.1 3.6 3.4 3.4 3.1 1.4 18.0 16.4

National tralning system,occupational standardsand tests 1.1 1.7 1.5 1.0 1.3 1.2 7.8 7.1

Subtotal 4.2 5.3 5.0 4.3 4.4 2.6 25.8 23.5

Upgrading of TrainingVocational training programs (BLK) 2.6 7.1 8.0 2.3 2.4 2. 24.4 22.2Instructor training 1.5 2.7 4.6 4.7 3.9 3.6 20.9 19.0In-plant training, supervisory

training and productivity 0.8 1.5 1.9 2.0 1.8 1.7 9.7 R.8Self e loyment & informal sector 0.4 0.7 0.6 0.4 0.4 0.2 2.7 2.5Mobile training 0.4 0.7 0.7 0.6 0.4 0.3 3.0 2.7

Subtotal 5.6 12.7 15.8 10.0 9.n 7.7 60.8 55.3

Total Prolect Costs 11.1 21.1 23.3 16.7 15.5 11.9 99.7 90.7

Project preparation facility 0.4 - - - - - 0.4 0.4

TOTAL COST 11.5 21.1 23.3 16.7 15.5 1.q 1nn.1 91.1

- 65 -ANNEX 11TahlTe3Prae I

TNPONESIA

MANPOWER DEVELOPMENT AND TRAININC PROJECT

Project Coats

Project-Related Unit Operating Costs

Project-related operating costs are those suppor:ing costs included in theGovernment's development budget (DIP) which are related directly to projectactivities. Costs do not include salariea,international trAvel, living costsof consultants at base, and project cuapport codts of consultants andfellowships which are included normally in the contracts for services, andalso exclude regular salaries of ministt; .caff and fees and subsistence forstaff training fn formal courses.

1.Labor Market ar4 Manpower PlanninR Studies1.1 Specific Regional Studtes. Design, implementation, follow-up and

monitoring of specific regional studies - cost per study (expectedfrequency - 1, 2, 2, 2, 2, 2)

Rp'OOO(01) Salaries and WaRes

monoraria for staff (12 months at 400,nOO) 5,on0Honoraria, fees for local

specialist staff (12 months at 1(000.000) 12,000Salaries for temporaryfield support staff (40 months at 250,00n) 1n,000

Subtotal 27,000

(03) MaterialsPaper, printing, oroduction 10,000Anslysis/computation I1,nOO

Subtotal 20,n0n

(05) TravelConsultanta/visitinR staff (25 man trips x 2nn,nnn) 5,000Local (500 x 10,000) 5,000

Subtotal in,nno

(07) Otherlontingencies 1n0) a,oooSubsistence (in field):Consultants/visiting staff ion days at 70,no0 7,0n0Local staff 200 days at 40,000 8,000

Subtotal 21,00n

Total sonn

1.2 Comprehensive and National Studies Design, tmplementation and dissemi-nation oF findings of major comprehensive studies (expected frequency -O, 1, 2, 1, t, 1)

(n0) Salaries and WagesHonorarta for staff (25 x A months at 4nn0,no) 40,n0oHonoraria, fees for local

specialist staff (25 manmonths x 1,nnn.nnn) 25,0noSalaries for temporary fieldsupport staFf (28 x 6 months x 250,non) 4n,n0n

Subtotal lns.0OO

(03) MaterialsAnalysis, computation, oaper etc. 0n,no0

(05) TravelVlsTting/consultant staff 5,0noLocal staff 20,non

Subtotal 2S,000

(07?) OtherTTflt) 20,00nSubsistence (Visiting consultants) 10,000

(Local) 30,ono

Subtotal 60.000

Total 220,noo

- 66- ANNEX-I

Table 3Page 2

1.3 Regular Studies and Analyiso of Existint Data(Expected frequency 3, X, 10, 12, 12, 12)

(01) Salaries and wages 7,000(03) 'laterials 5,000(05) Travel 3,000(07) Other 7,nno

Total 22,000

2. Management and Staff Development2.1 PUSDIKlAT. Annual Staff Training/Development Coaste related to project.

(01) Salarie, and WagesHonoraria for staff (4 x 12 x 200,000) 10,0onRonoraria fees for local

temporary staff excludingcost covered by 'fees' withinfellowship costs 20,000

Subtotal 30,000

(03) Materials 10,000

(05) Travel 5,000

(07) Other(Contingencies) 10,000Subsistence 20,000

Total 75,000

2.2 National Training Council: Annual operating cost (at full operation)

(01) Salaries and WagesHonoraria for secretariat (A x 12 x 150,n0n +

6 x 12 x 5n,000) 11,000Honoraria for members (30 x 10 days at 50,000) 15,000

Subtotal 26,000

(03) MaterialsPaper, printing etc. 30,nno

(05) TravelConsultants/Visiting staff (5 x 200,000) 1,000Local including members t3n x 5 x 40,000 6,000

Subtotal 7,noo

(07) OtherContingencies 5,nnoSubsistence (300 x 40,000) 12,000

Subtotal 1F'000

Total 80,00o.

2.3 Regional Training Councils: Annual operating cost per regional coun-cil. (Assume no. in operation by year 1, 2, 2, 3, 4, 4).

(01) Salaries and Wages 12,000(03) Materials 15,000(05) Travel 3,nOO(07) Other 10,000

Total 40,000

- 67 - ANNUE ll

Table 3

Page 3

2.4 Pro1ect lirector's Office (Annual cost). Excludes local consultancyfees for Pr: cc ma-nger anm section beads

(01) Salaries and W aesoa.oraria 45,000

Nonoraria for temporary office staff 30,000Honoraria for committee mebers 25,000

Subtotal 100,000

(03) Materials 20.000

(05) Travel 30 000

(07) OtherVn-tingencies (1nZ) 15,n00Subsistence 25,000

Subtotal 40,000

Total 190,000

2.5 ProIeet Related Mansaement Costs: Annual costs - not covered by apeci-tic operations (excluding Project Management Office - .75, 1, 1, 1, 1,.75)

(0) Sal arnd Ya ainioirar- for special duties staff (16 x 12 x 200,000) 80,000

Meetings/ provincial visits etc. Honoraria 80,000

Subtotal 160,0nO

(03) MaterialsExtra printinglpaper/copying etc. I0O,O

(05) Trawel 100,000

(07) Otherm fi~~~~~~~~~~~~~~~o,non

Subsistence B0,000

Subtotal 140,000

Total 500,000

2.6 Development of Eccupational Standards and Tests. Annual operationscosts tor each tra sl area. kAssume ski' areas dealt with by

year as 2. 2, 2, 2, 4, 4).

(01) Salaries & Wagesti9noraria 15,000Fees for local temporary staff 25,000Honoraria for panel membership 20,000

St ,Cotal 60,000

(03) Materials 20,000

(05) Travel 5,000

(07) Othertntingencies 10,nnoSubsistence 5,000

Subtotal 15 0o

Total 100,000

3t Upgrading and Extension of Training3.1 Development of TrainingR odules and Materials. Cost per training module

for desrgn, development, testing of new training materials. Assume num-ber developed by year - 3, l, 5, 7, 7, 7.

(01) Salaries and AllowancesHonoraria tar stafF IS,nonHonoraria/fees for temporary staff & panels 20,0nO

Subtotal 35,no

(03) Materials 20,000

(05) Travel 5,000

(07) Otherin3tingencies 1o,nnn

Subsistence 5,0no

Subtotal 15,noo

Total 75,000

-68- ANNEX 11Table 3Page 4

3.2 Instructor Training. Annual cost

(01) Salarles and WAgesHonoraria torIslaff 4 x 10 x 12 x 100,000 50,000Honoraria for temporary/part time staff 25,000

Subtotal 75,000

(03) Materials 30,000

(05) Travel 15.000

(07) Otherr r 15,000Subsistence 15,000

Subtotal 30,000

Total 150,000

3.3 Incentive Schemes for Part-Time Instructors. Inoremental cost permodule-class. - 5. 10, I5, Z0, ZU, 20

(01) anlaries Id WagesHonoraria (15 weeks x 200,000) 3,000

3.4 Supervisory Training and Productivity Cost per module for develop-mentltr1al etc. Asmae schedule Z, z, 4, 4, 2, 2. Cost as for 3.1.

(01) Salaries and Wages 35,000(03) Materials 20,000(05) Travel 5,000(07) Other 15,000

Subtotal 75,000

3.5 In-Plant Training. Annual cost for each Industrial Training DevelopmentUnit rITDUyT l, Z, 2, 4, 4, 4.

(01) aalaries nd WagesHonoraria 2 x 12 x 400,000 10,000Honoraria for specialist staff (3 x 12 x 1.000.000) 36,000

Subtotal 46,000

(03) Materials (including printing and publicity) 20,000

(05) Travel 5,o00

(07) OtherTM) 19,000Subsistence 10,000

Subtotal 29,000

Total 100,000

3.6 Self-employment/Informas Sector and Mobile Training. Average cost fordeveIiopment, implemeIntation and monitoring per module-class 3, 4, 6, 6,8, 8.

(01) Salarles and WagesHinoraria for staff 2,000Honoraria for temporary or

part-tine staff 1,000

Subtotal 3,000

(03) Materials 3.000

(05) Travel 2,000

(07) OtherliuFsistence 1,000Support, follow-up for

trainees 2,000

Subtotal 30,000

Total 11,000

- 69 -

ANNEX 11Table 4

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Estimated Schedule of Disbursements

Disbursements Regional educationIBRD Amount per Cumulative projects disbursementfiscal semester amount Cumulative profile /ayear - -US$ million- (2)

19871 0.5 0.5 1 02 0.5 1.0 2 2

19881 1.0 2.0 4 52 1.5 3.5 6 11

19891 4.5 a.0 14 182 6.0 14.0 24 26

19901 6.0 20.0 35 362 7.0 27.0 46 47

19911 7.0 34.0 59 572 6.5 40.5 70 66

19921 6.5 47.0 81 742 5.0 52.0 90 81

19931 4.0 56.0 96 862 2.1 58.1 100 91

/a The regional education disbursement profile is based on historical datafor 29 projects and represents the initial 7 years of an average disburse-ment period of 9 years.

- 70 -ANNEX 12

INDONESIA

MANPOWER DEVELOPMENT AND TRAINING PROJECT

Selected Documents and Data Available in the Project File

A. Selected Reports and Studies Related to the Sector

A.1 "Industrial Training: Report on the Findings of the July 1984 IndustrialSurvey," September 1984.

B. Selected Reports and Studies Related to the Project

B.1 "Manpower Planning and Vocational Training Project," MOM with assistanceof British Council. Volumes 1, 2 and 3, October 1985.

B.2 "Tracer Study of BLK Graduates," MOM report by David Clark, June 1985.

B.3 "The Manpower Planning and Labor Market Information Component,' DavidClark, July 1985.

B.4 "Observations about Labor Markets in Indonesia," David Clark, September1984

B.5 Technical Assistance Proposed for East Java Regional Component - ILONovember 1985

C. Working Papers

C.1 Project Management - November 1985

C.2 Staff Development and Training 1986/87-November 1985

C.3 Terms of Reference for Consultant Services - December 1985

C.4 Project Activities and Development Budget 1986/87-November 1985.

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