Putera Sampoerna Foundation INDONESIA Case Study by: Phil Beavers Presented by: Juliana Guaqueta The World Bank March 31, 2010

Putera Sampoerna Foundation 1. Scholarships (access)  Sampoerna Academies: state-owned boarding high-schools that selects most able students from neighboring schools  Education within Indonesia: Primary to Graduate Schools  Tertiary overseas: MBAs in world leading universities 2. Teacher Capacity Programs (quality)  Teacher Institute: continuing education workshops to raise standards  School of Education: 4-year degree granting institution 3. School-wide development (administration)  United Schools Program: transform selected senior high-schools for quality improvements

Why is this case relevant? Local philanthropic organization—as opposed to international philanthropy— Works with public education institutions Aims to address public failures by creating a new set of incentives in the system  Merit-based scholarships and teacher training  Government matches funding in targeted public schools Tackles quality of education by working on teacher capacity

Education System in Indonesia 1. Access: 93.2% Primary enrollment (2005)  65.2% Junior Secondary enrollment (cost of opportunity) 41.7% Senior Secondary Schools (school fees are introduced) 17% Tertiary (full cost must be met personally) 2. Quality Low performance in International Assessment TestsTests Teachers under qualified: 50% of 2.7m teachers do not have 4 year bachelors degree Inadequate teacher training institutions: current capacity 20,000 vs. 1.7m teachers 3. System Management: Excess of staff in urban areas: low STR of 19 at Primary & 15.6 at Junior Secondary Low workloads: 23% primary & 44% secondary teachers, workload < 18 hours per week Absenteeism: 1 in 5 teachers are absent in any given day (19%)

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Education System in Indonesia 1. Access: 93.2% Primary enrollment (2005)  65.2% Junior Secondary enrollment (cost of opportunity) 41.7% Senior Secondary Schools (school fees are introduced) 17% Tertiary (full cost must be met personally) 2. Quality: Low performance in International Assessment TestsTests Teachers under qualified: 54% of 2.7m teachers do not have 4 year bachelors degree Inadequate teacher training institutions: current capacity 20,000 vs. 1.7m teachers 3. System Management: Excess of staff in urban areas: low STR of 19 at Primary & 15.6 at Junior Secondary Low workloads: 23% primary & 44% secondary teachers, workload < 18 hours per week Inequities for remote schools: 28% of teachers with below minimum workload Absenteeism: 1 in 5 teachers are absent in any given day (19%)

1. Scholarships How does the program operate?  Different mechanisms for targeting:  Merit-based: competitive selection of best students academically  Income-based: students that lack economic means (low-middle income & demographics)  Multiyear scholarships to ensure graduation How does it work with Government?  Students attend public education institutions (primary to tertiary)  Governments supply all capital costs for Academies (buildings & materials)  Foundation provides operational expenditures Coverage?  Total scholarships 30,000 ( )  Academies: each scholarships is $5,000; 150 students per year

2. Teacher Capacity How does the program operate?  Institute: short workshops to facilitate raising standards in their schools  School of Ed: government-licensed, degree granting institutions, provides financing for 70% of students.  Overseas partnerships and curriculum (with Singapore & Australasian HE institutions) Work with Government?  Private institute that trains public school teachers  Certificates that add to portfolio required to receive Teacher Certification (2005 Law) = double salary Coverage?  Institute: workshops to 14,000 teachers and 1,100 principals  School of Education: 89 students in second half of 2009 (first semester)

3. School Management How does the program operate?  Target: income-based and average schools with potential to improve  PSF provides support for academic related improvements (5 years)  Involves corporate partners as sponsors/donors (30% in 2009)  Indicators to monitor: National Scores before and after; % of 4-year degree teachers Work with Government?  Close coordination with Municipal Government to nominate schools  MONE and local government match every dollar donated through capital infrastructure (building refurbishment and equipment) Coverage?  22 USP; attending 16,000 students  Mixed results (slight decline in average ranking but half of the schools improved)

PSF Investments Program Projected Investment (USD) Sampoerna School Education $ 4,297,387 Sampoerna School of Business $ 2,179,646 Sampoerna Academy $ 9,143,820 Program Development $ 1,685,572 Scholarship $ 5,009,139 Student Loan $ 44,175 Alumni Affairs $ 37,922 Bait Al-Kamil $ 100,179 Total $ 22,497,841 Total donations U$22.5 million PSF supplements government programs Monitoring and financial management is handled by PSF Except funding on infrastructure In addition, corporate donors and partners channel resources through the PSF for specific projects

Role of private donor in the education system Potential ImpactYes/No/ Unclear How? Supply 1. Establishing relationships of accountability with existing service providers (supply) YesFoundation provides support and incentives created for school improvement plans in selected schools through the United Schools Program. 2. Acting as an independent service provider (supply) YesAcademies at high-school level (even if in government premises), Teacher Institute, School of Education provide quality education for selected students and teachers. 3. Influencing Policy Making (supply)NoSupplements public programs in place but does not yet trigger changes in public policy Demand 4. Transferring resources to the demand side of education to enable enrolment and attainment (demand) YesFacilitates access through scholarships from primary to graduate level for economically challenged students. 5. Increasing competition in the system (demand) UnclearDoes not create changes in rest of public schools. New programs and low coverage.

Challenges Financial Sustainability:  Primarily based on philanthropic investments and corporate donations  Finite resources Local vs. systemic effects:  Localized enhancements of the public system  How to trigger systemic changes? Trade-off between merit and low socio-economic status:  Often times students from low-income background demonstrate lower performance  Increments in average quality of education can be induced by two strategies: moving up the best students; or moving up the lower performers.  What is the best approach?

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