Client & Partner: The World Bank,
Indonesia is undergoing a major and rapid structural transformation, but with a population of more than 250 million and the poverty level is 11 percent in 2014, Indonesia faced a large local infrastructure deficit. Levels of access to and the quality of basic services – such as healthcare, education, clean water supply, sanitation, and transportation – remain low and in many cases worsening. Subnational governments are responsible for 60 percent of consolidated public infrastructure spending, but this is barely sufficient to keep up with the depreciation of local public assets, even larger demand for new infrastructure. In addition to inadequate finance, subnational governments have also lacked the technical, institutional, or financial capacity to carry out strategic infrastructure investments and keep pace with rapidly expanding demand for local service.
The Ministry of Finance (MoF), in partnership with the World Bank, has completed the process of setting up a Regional Infrastructure Development Fund (RIDF) that will institutionalize the business of lending for municipal infrastructure and implemented by PT. Sarana Multi Infrastruktur (PT. SMI). The World Bank is working in close coordination with the MoF and PT. SMI to help implementation of the RIDF. One key area of institutional support is to strengthen the capacity of PT. SMI in systematically evaluating the outcomes or impacts, effectiveness, and value for money of municipal lending to SNGs. As mandated by the MOF, PT. SMI is expected to grow its portfolio on municipal lending in the next few years, and conducting impact evaluation, therefore, will help PT. SMI make informed decision when providing loans to SNGs to achieve better development outcomes.
The data collection technique applied both quantitative (through surveys) and qualitative approaches (through key informant interviews/KIIs) to assess the impacts of the projects on beneficiaries’ welfare, access to services, user satisfaction, quality, utilization of services, and revenue generation.
Road investment in Kabupaten Tapanuli Tengah-North Sumatera. The objectives of the study were (i) to provide information on the situation before the road construction projects; (ii) to assess the impact of the projects on beneficiaries’ welfare, access to service, user satisfaction, quality and utilization of services, and potential revenue generation, and (iii) to collect similar data from a control site that was comparable to the location that received the investment.
The study was carried out in six treatment road segments and their corresponding control segments which were selected upon discussion between the World Bank team, the REDI team, PT. SMI, and local government. The selected treatment and control road segments are presented below.
The household surveys. The study collected data of household basic information and characteristics, access to service, travel time, frequency of travel to town, price of purchased products and quantities, household consumption, household asset, labor supply, and sources of household income. In total, there were 240 households surveyed, or 20 households for each of the road segments, the treatment and control roads.
The business interviews. The businesses included in the study were micro, small, medium, and large scale of businesses. The business was defined by the number of employees and annual revenue. The team completed interviewing 14 businesses located in five road segments.
The traffic counts. The team successfully did the traffic count in all road segments. The traffic count was carried out manually with direct observation to the vehicles passed the road segment from 6 AM to 8 PM.
Jelojok Market Revitalization investment, Kabupaten Lombok Tengah-West Nusa Tenggara.
The market revitalization aimed to revitalize an existing traditional market in Kopang (Jelojok market) district in Lombok Tengah. The aim of the project was to increase regional economic activity and to create a traditional market with a comfortable, clean, and safe environment for traders and buyers. The impact analysis referred to the theory of change that upgraded market will reduce the cost of trade. Costs include all costs of bringing the product to the consumer.
The objectives of the end line data collection were (i) to collect data to analyze a change in consumer welfare; (ii) to collect data to analyze a change in trader welfare for traders who were working at the market; (iii) to collect data to analyze whether a reduction in trader welfare for traders who were not working at the market, and (iv) to analyze whether higher volumes of trade at the market occur. The data collection was arranged as an endline data collection; while the baseline data collection was carried out by the World Bank in 2018.
Similar with the baseline data collection, the study took place in the treatment market (Jelojok market) and control market (Mujur market).
The trader surveys. The trader survey collected data from the selected traders of Jelojok and Mujur market. The endline data collection, the REDI was successfully surveyed 160 baseline trader respondents out of 339 matched databases; while in 2018, during the baseline data collection, the World Bank team surveyed population of traders as many as 651 traders while they were in relocation market in Kecamatan Pengkores.
The new trader surveys. Applyed the snow ball sampling, the REDI team was able to survey 38 new trader respondents.
The customer surveys. In addition to the trader surveys, the REDI team also collected surveys from customer of both markets. In total, 100 customers were surveyed for each market. The respondents were selected from those who were shopping at the market.
The trader interviews The trader interviews were conducted to traders in Jelojok market and the team focused on specific questions based on the survey result. Some initial findings of the trader survey were asked more in-depth trough the interview. The REDI team carried out 15 in-depth interviews with traders.
The market administrator interview. The market revitalization impact evaluation study takes place in Kabupaten Lombok Tengah, West Nusa Tenggara Province. In addition to trader and customer survey and trader interviews, team also did an interview with market administrator for Jelojok market.
Market Construction investment, Kota Banjarbaru-South Kalimantan
The impact evaluation study on market revitalization in Kota Banjarbaru was carried out as an endline data collection scheme and have the following objectives (i) to collect data to analyze a change in consumer welfare; (ii) to collect data to analyze a change in trader welfare for traders who were working at the market; (iii) to collect data to analyze whether a reduction in trader welfare for traders who were not working at the market, and (iv) to analyze whether higher volumes of trade at the market occur. The study used tretament-control design and the treatment market is Bauntung market while the control market is Landasan Ulin market.
The customer surveys. The REDI team was successfully surveyed 150 customer respondents from each market.
The trader interviews. The trader informants were proportionally selected based on two criteria, i.e.: (i) traders who did trade activities in relocation market and currently trading in Bauntung market, and (ii) traders who did not do trading in relocation market but currently trading in Bauntung market. In total, there were 15 trader interviews.
The market administrator interview. The team had an online interview with Bauntung market administrator via Zoom meeting. The interview focused on questions about data and administration of the Bauntung market, including the history of the market, its historical renovations had made before, land and buildings of the market, trading activities and commodity, data of trading spaces and traders, market expenditures, and market facilities