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World Bank lends support to RI's education program
The Jakarta Post , Jakarta | Thu, 10/09/2008 10:25 AM | National
Hopes are high for the government to boost enrollment rates and quality education at primary and junior high schools, following the World Bank's approval of a loan to support a financial aid program.
The World Bank's Board of Executive Directors agreed in Washington DC on Tuesday to channel a US$600 million loan designed to support and improve the School Operational Assistance and Knowledge Improvement for Transparency and Accountability (BOS-KITA) scheme.
"The BOS is a perfect example of how government-led efforts to improve public expenditure and promote institutional change in a dynamic middle-income country like Indonesia can lead to success," said Joachim von Amsberg, the World Bank's country director in Indonesia.
"With the BOS-KITA, the World Bank reinforces this success by helping to fund activities that enhance educational quality, such as training for teachers and more teaching material. This investment illustrates a new approach by the World Bank: instead of financing freestanding projects, our aim is to cofinance existing priority government programs and help improve their quality."
The Ministry of National Education has proposed Rp 12.12 trillion ($1.26 billion) for 2009 to continue the BOS scheme, up from the Rp 11.2 trillion approved this fiscal year.
Following on the four-year implementation of the BOS, the BOS-KITA is designed to strengthen school-based management and community participation and, as a result, to further improve the quality of education spending in Indonesia.
Over the next two years, the BOS-KITA will provide up to $600 million for the Indonesian government's BOS program. The BOS-KITA will also be used to reimburse a portion of the government's BOS grants made to public and private primary and junior high schools through the Ministry of National Education.
The program supports the government's commitment to school-based management by strengthening school committees, particularly in the planning and monitoring of BOS expenditures.
"A key element to the success of the BOS-KITA is transparency: annual plans for the use of BOS funds and quarterly expenditure reports will be publicly displayed on school notice boards," von Amsberg said.
"The program replicates one of the most important lessons learned from the community development mechanism - namely that social pressure from informed local communities can be a positive influence on reducing corruption and the misuse of funds."
The BOS-KITA also lays the groundwork for a sector-wide approach in education. Working with the European Commission and the Dutch government, the World Bank aims to develop capacity in financial and information systems management at district and school levels in 50 districts to strengthen the decentralized education system.
The World Bank is also supporting the government in preparing a program of basic education reforms called Systems Improvement through Sector Wide Approach (SISWA), which will provide performance-based grants to districts.
