Indonesia: Social Protection Sector Development Program

The Social Protection Sector Development Program (SPSDP) was designed and implemented in response to socioeconomic distress caused by the 1997 Asian economic crisis. The SPSDP combined two loans: $100 million for Loan 1622-INO–the policy component (the Program) and $200 million for Loan 1623-INO (the Project). The hardships caused by the crisis, exacerbated by serious drought in many parts of the country, led to widespread unemployment and falling incomes. The Government was faced with the prospect of rapidly growing numbers of people falling into poverty, and a reversal of social development progress achieved during the preceding two decades. Combined with the severely constrained government budget, the impact of the crisis had the potential to make access to basic social services difficult for the poor and vulnerable groups. 

The overall rating for the SPSDP is “successful,” based on the assessment that the SPSDP was highly relevant, effective, efficient, and likely sustainable. The SPSDP is considered highly relevant in mitigating the impact of the crisis on the most vulnerable members of Indonesian society in terms of their access to basic social services in education, health, family planning, and nutrition. The education components, in particular, drew additional and complementary funding from the World Bank and the Government, which enhanced the success of the overall SPSDP. The more complex design and less specific targets to be achieved in a limited time reduced the success of the nutrition component.