Putera Sampoerna Foundation

1. PuteraSampoerna Foundation Indonesia Case Study by: Phil Beavers Presented by: Juliana Guaqueta The World Bank March 31, 2010

2. PuteraSampoerna Foundation • 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 • Teacher Capacity Programs (quality) • Teacher Institute: continuing education workshops to raise standards • School of Education: 4-year degree granting institution • School-wide development (administration) • United Schools Program: transform selected senior high-schools for quality improvements

3. 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

4. Education System in Indonesia • 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) • Quality • Low performance in International Assessment Tests • 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 • 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%)

5. Decade of Progress in Indonesia: Math

6. Proficiency level - Math 2006 Back to Menu

7. 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 Tests • 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 • 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%)

8. 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 (2003-2008) • Academies: each scholarships is $5,000; 150 students per year

9. 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)

10. 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)

11. PSF Investments • 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

12. Role of private donor in the education system

13. 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?

14. Thank you