TA.

2023

EXECUTIVE SUMMARY
FINALIZATION PRELIMINARY IMPACT EVALUATION
(IsDB Funding Area)

1
 EXECUTIVE SUMMARY

1. Background
The National Slum Upgrading Program (NSUP) is a program at the Directorate of Residential
Area Development, Directorate General of Cipta Karya, in order to increase the capacity of
communities and local governments to improve the quality of slum settlements in urban areas.
Implementation of NSUP activities for the IsDB funding area (NSUP IsDB) began on 18
September 2016 and is planned to end on 4 May 2021 (PAD NSUP).
In 2020 there was a change in the National Development Policy regarding the 2020-2024
RPJMN, while NSUP still refers to the 2015-2019 RPJMN, one of which is infrastructure
priority in urban areas to support National Strategic Areas in tourism areas, regional economic
potential and small industrial areas.
DGHS's policy regarding changing the economic approach to an economic supporting
infrastructure approach for livelihood activities, which will focus on environmental and city
scale infrastructure that should have an impact on economic aspects and people's welfare. While
economic activities will be carried out by the community and local government with the
facilitation of NSUP.
The Corona Virus Disease 2019 (COVID-19) pandemic with an increasing number of cases
and/or the number of deaths has spread to all regions and across countries and has had an impact
on political, economic, social, cultural, defense and security aspects, and people's welfare in
Indonesia. The impact of the COVID-19 pandemic has resulted in certain conditions that require
prevention efforts, one of which is limiting community activities. This restriction on community
activities has a real impact on the sustainability of household livelihoods, especially for low-
income people (MBR).
In response to the COVID-19 pandemic conditions, NSUP made several adjustments in program
implementation, including restructuring and reallocating loan funds, adjusting Key Performance
Indicators (KPI), and extending the IsDB loan closing date until December 31, 2022. As a
consequence of the NSUP loan restructuring until 31 December 2022, it is necessary to readjust
the program work plan, including evaluation activities. One of the adjustments made was
carrying out the Midterm II Evaluation.
IsDB adopts an impact evaluation system for NSUP evaluation through a series of evaluation
activities starting from ex-ante data measurement (collection of baseline data), on-going
(midterm) evaluation and ex-pose evaluation (Preliminary Impact and Impact). Finalization of
the Preliminary Impact Evaluation aims to assess the performance of the NSUP which was
compiled when the implementation of the new program was completed.
The finalization of the Preliminary Impact Evaluation was carried out to capture activities that
have not been photographed in October 2022 by adding the scope of ILBK (Regional-Based
Livelihood Infrastructure) activities, 2022 Vocational Training and City-Scale activities that
have been completed in 2022 and 2023 as well as Community-Based Slum Infrastructure

ii
Arrangement activities (PIKKBM) Kelurahan Year 2023, so it is necessary to measure additional
data towards the Preliminary Impact Evaluation that has been prepared.

2. Methodology
The NSUP Preliminary Impact Evaluation was carried out using a mixed methods (mixed
methods research) quantitative and qualitative. The mixed methods design uses convergent
mixed methods, meaning that both quantitative and qualitative data are collected at about the
same time. The survey design (to select the sample) was carried out using a two-stage cluster
sampling method.
Because the inferences from this evaluation must cover the target population spread across 14
provinces, provinces are not considered as the primary sampling unit. The main sampling units
of this study were districts/cities which were selected purposively for the following technical
reasons, namely (1) ease of selecting a representative sample of the population, (2) consideration
of the level of success in achieving the aims and objectives of the evaluation; and (3) cost
considerations (namely funds, manpower, and time) that affect the allocation of the main sample
(number of districts/cities) and secondary samples (number of urban villages), including
observation units (number of RTs and number of households) which are sub-unit samples from
ward.
The mixed convergent method was chosen because the NSUP performance indicators were
available. The sample was selected using a two-stage cluster sampling method for the following
reasons: (1) most of the kelurahans fall into the mild slum category; (2) the area of slums in each
kelurahan is less than 10 ha and spread out in blocks or neighborhood units whose area is
equivalent to the neighborhood unit (RT) in the kelurahan. Therefore, the sample unit (analysis)
in this evaluation is the sub-district. This sample unit was chosen because the improvement in
the quality of slum settlements was assessed on the basis of the reduction rate of slums in each
kelurahan. To assess the improvement in the quality of the slum settlements in the kelurahan
during and after the intervention, all slum RTs in the kelurahan were observed and observed.
Because the slum level in each kelurahan is assumed to be the same (ie light slum) and mutually
independent (meaning that the slum level of one kelurahan does not affect the slum level of other
kelurahans), then to avoid subjective and researcher preferences, the secondary sampling unit
(secondary sample unit), namely kelurahan, selected by simple random sampling method (simple
random sampling, SRS).
To assess the impact of interventions before, during and after NSUP on the community, 2,820
households (households) were selected as sample sub-units from the kelurahan/villages sample
unit. This household data is used to assess the economic and social impacts resulting from the
NSUP intervention on improving the quality of slum settlements in urban areas.
Due to the reasons mentioned above, the survey design of this Evaluation uses a two-stage cluster
sampling method. In general, the procedure of this method is presented in Box 1.

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 Box 1: Procedure for the Purposive Two-stage Cluster Sampling Method
Stage 1: Selecting the main sampling unit (ie regency/city) purposively with convenience
criteria but representing the population.
Stage 2: Randomly select the secondary sampling unit (ie kelurahan) within the selected
cities.
Stage 3: Randomly select a tertiary sampling unit (ie RT) within the selected kelurahan.
Stage 4: Observing each of the variables formulated to form slum indicators set by NSUP.

This preliminary Impact survey was carried out on five populations: (1) T1: Kelurahan/Villages
that receive regular environmental scale infrastructure interventions between 2017 and 2022
(PAD); (2) T2: Kelurahan/Villages that receive livelihood infrastructure interventions on an
environmental scale from 2019 to 2021; (3) T3: Kelurahan/Villages that receive area-scale
infrastructure interventions from 2017 to 2021, (4) T4: Kelurahan/Villages that receive CFW
interventions; (5) Control area is a non-intervention area.
Meanwhile for the population in the preliminary impact evaluation finalization survey, the
sample size was carried out in seven populations. namely: (1) T1: Kelurahan/Villages that will
receive Regional-Based Livelihood Infrastructure (ILBK) interventions in 2022; (2) T2:
Vocational Training 2022 (at the BDC location); (3) T3: Kelurahan/Villages that will receive
area-scale infrastructure interventions in 2022; (4) T4: Kelurahan/Villages that will receive area-
scale infrastructure interventions in 2023; (5) T5: Kelurahan/Villages that received intervention
in the 2023 Community-Based Slum Area Infrastructure Arrangement (PIKKBM) activity; (6)
T6: Kelurahans that receive environmental scale activity interventions that carry out
collaborations, especially clean water and sanitation (Watsan). (7) Control area is a non-
intervention area.
To assess the effect of program interventions, 10 MBR per kelurahan were selected. As a
comparison (control) 7 MBR were selected in the Flag-1 area (slum PAD) outside the
intervention area in the same city.
The following table is a Summary of Optimum Sample Size for Treatment and Control
Kelurahan/Villages for Preliminary Impact Surveys and Preliminary Impact Finalization
Preliminary Impact (October 2022)
Population Sample
Program Intervention Sample Types Kelurahan/ Kelurahan/ MBR
Villages. Villages.
1 Regular Neighborhood Scale 2016-2021 1,174 243 2,340
2 Neighborhood Livelihoods 134 60 600
3 City Scale 100 26 260
4 CFW 707 124 868
Treatment sample totals 274*) 3,200
CFW Total Sample 124 868
Total sample Control (Non Intervention) 192 644
TOTAL 466 4,544
Note :*) there are Kelurahan/Villages that are sliced

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Finalization of Preliminary Impact (May 2023)
Population Sample
Program Intervention Sample Types Kelurahan/Vi Kelurahan/Vil MBR
llages lages Ex.
1 ILBK 2022 37 37 370
2 BDC Vocational Training 2022 30 300
3 City Scale 2022 26 23 230
4 City Scale 2023 8 8 80
5 PIKKBM 2023 48 41 410
6 Neighborhood Scale (Watsan) 1174 87 870
Treatment sample totals 226*) 2,260
Total sample Control (Non Intervention) 101 707
TOTAL 327 2,967
Note :*) there are Kelurahan/Villages that are sliced

Quantitative data that has been collected is then analyzed, interpreted, and concluded. To sharpen
and make sense of the conclusions, triangulation and content analysis were applied based on the
results of the qualitative data collection. Triangulation is used to assess the validity and reliability
(consistency) of qualitative information, while content analysis is used to interpret conclusions.
Quantitative conclusions (program achievements) from the study results are carried out by
comparing the benchmark statistics (baseline data) of NSUP and the results of the NSUP
Preliminary Impact Evaluation. Benchmark statistics were measured from a baseline survey
conducted in the February-October 2016 period, while the NSUP Preliminary Impact Evaluation
survey was carried out in the July 2019 - June 2021 period, July 2021-June 2022. Finalization
of the Preliminary Impact Evaluation was carried out to see additional activities carried out in
the October period 2022-May 2023. This comparison was carried out using the double difference
method, namely comparing the magnitude of changes between the same indicators from the
results of previous surveys from the Treatment group and the Control group.

3. Program Reviews
3.1. Program Data and Information
The main objective of NSUP is to improve the quality of urban slum settlements which
(expectedly) have an impact on the welfare of people in urban areas, especially in settlements
that were previously slums, through prevention and improvement of the quality of slum
settlements with a community participation-based infrastructure development approach, and
local government as the main driver . Relevant to this objective, NSUP has specific objectives,
namely:
1. Improving community access to basic infrastructure in order to reduce slums based on 8
slum indicators;
2. Promote stakeholder collaboration through local government facilitation and
accommodation;
3. Improving community welfare by encouraging sustainable livelihood activities.

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This program has four main components, namely (a) Block investments for Slum Alleviation
and Prevention; (b) Building Community Institutions and Local Government/Building
community institutions and Local Government; (c) Knowledge Generation and Review; (d)
Project Management Support/Support the Project Management Unit.

3.2. Project Cost and Funding

The total value of NSUP financing in the IsDB funding area is USD 364.66 million (project
cost), consisting of USD 329.76 sourced from IsDB and USD 34.90 million from the
Government of Indonesia and the community as co-funding.
Actual cost until 30 April 2023 sourced from IsDB in the form of disbursements reached USD
310.12 million or 99.8% of USD 310.74 million.

3.3. Adjustments During Execution

Adjustments to the implementation of NSUP IsDB activities to the policy until October 2022
are as follows:
(1). Adjustments to regulations regarding prevention of the growth and development of new
slum housing and slum settlements
Adjustments to the implementation of Component A3. On May 22 2018, the Regulation
of the Minister of Public Works and Housing Number 14/PRT/M/2018 of 2018 concerning
Prevention and Quality Improvement of Slum Housing and Settlements was stipulated.
The regulation stipulates that prevention of the growth and development of slum housing
and slum settlements is carried out through supervision and control, as well as community
empowerment. This provision is the basis for adjusting the concept and implementation of
Component A3 in PAD which was prepared in 2016 regarding Slum Prevention activities
in the target areas of NSUP prevention activities in IsDB funding areas.
(2). Proposal for Revision Livelihood Enhancement Program To IsDB
Based on NOL request for Proposal for Revision Livelihood Enhancement Program (IND-
176) NSUP No. HL.02.02-CK/145 and IsDB Approval of Change of Scope Linked to
ISFD Loan Operation, NSUP (IDN1011) RHI/2019/447, the context in the Proposal for
Revision Livelihood Enhancement Program is an adjustment to the design of a livelihood
program that leads to:
• The purpose of providing and developing infrastructure that has an impact on
economic aspects and community welfare is facilitated by NSUP;
• Economic activities carried out by the community with the support of the Regional
Government facilitated by NSUP.
(3). Adjustments to regulations regarding Policies during the COVID-19 Pandemic
In 2020 there was an epidemic of COVID-19, resulting in several policies related to the
anticipation and control of COVID-19, including:

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 • Government Regulation of the Republic of Indonesia Number 21 of 2020 concerning
“Large-Scale Social Restrictions (PSBB)” in the Context of Accelerating the
Management of Corona Virus Disease 2019 (COVID-19);
• Decree of the President of the Republic of Indonesia Number 11 of 2020 concerning
Stipulation of a Public Health Emergency for Corona Virus Disease 2019 (COVID-
19);
• Instruction Letter of the President of the Republic of Indonesia Number 4 of 2020
concerning Refocusing Activities, Reallocating Budgets, and Procurement of Goods
and Services in the Context of Accelerating Handling of Corona Virus Disease 2019
(COVID-19);
• Instruction of the Minister of Public Works and Public Housing Number
01/IN/M/2020 concerning Protocols to Prevent the Spread of Corona Virus Disease
2019 (COVID-19) in the Implementation of Construction Services.
(4). Community Economic Recovery during the COVID-19 Pandemic
The CFW (Cash for Work) and NSUP labor intensive activities are an effort to solve basic
infrastructure problems for slum settlements, on the other hand as an effort to restore the
community's economy during the COVID-19 pandemic that hit all parts of Indonesia.
4. Preliminary Impact Evaluation Results
The results of the Finalization of the NSUP Preliminary Impact Evaluation for the IsDB region
until May 2023 show that the average score of the entire program is Satisfactory (Score 3.77)
with the following achievements:
• Slum area sample, reduced by 100% against the baseline (from 2,828.7 ha to 0 ha)
• Beneficiary satisfaction with the availability of infrastructure is 95.2%
• All 32 KPIs indicators have exceeded the KPI targets consist of 100% Impact,
100% Outcome and 100% Output.

4.1. NSUP Overall Average Score for the Preliminary Impact Period until May 2023

NO ASPECT SCORE RESULTS

1 Design and Implementation 3.76 Highly Satisfactory
2 Relevance 3.72 Highly Satisfactory
3 Effectiveness 3.96 Highly Satisfactory
4 Efficiency 3.68 Highly Satisfactory
5 Sustainability 3.72 Highly Satisfactory
AVERAGE PRELIMINARY IMPACT SCORE
Highly
3.77
Satisfactory

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4.2. KPI achievement (Impact, Outcome and Output)
Of the 32 KPIs, the indicators that exceed the KPI targets are 100% Impact, 100% Outcome and
100% Output, the details of which are as follows
A. impact
Of the 3 impact indicators in the KPI, the achievements that have exceeded the target are
reducing urban residents living in slum settlements in kelurahans from 10.05% to 0,6% and
increasing access to proper clean water for urban communities from 70.5% to more than 90%
%. The achievement at the time of finalizing the Preliminary evaluation was 90.55%. In addition,
increasing access to proper sanitation for urban communities rose from 62% to more than 90%.
The achievement at the time of finalizing the Preliminary evaluation was 90.95%.
B. Goals/Outcomes
The target KPI performance achievement (outcome) with the main indicator of the target of
reducing the area of slums has exceeded the target. Overall 10 outcome indicators have exceeded
the target in the NSUP Preliminary Impact Evaluation Finalization position, namely:
Table 2. NSUP Preliminary Impact Evaluation Outcomes
Finalization of
Outcome Performance Preliminary
No Target Baseline Preliminary
Indicators Impact
Impact
1 A. Reduction of slums 0% or 0% or
1,174 to < 200 100% or 282
Kelurahan/ Villages 0 0
Kelurahan/Villages Kelurahan/Villa
Kelurahan/ Kelurahan/Vill
(83%) ges
Villages ages
10,492 Ha
B. Reducing the Area of 11,218 ha ke
100% or 2,828.7 0% or 0 ha become
Slums 4,518 ha (60%)
4,038 Ha
C. Beneficiaries Satisfied
with the Quality of Basic Can't be 94.6% 95.2%
60%
Infrastructure and measured yet (2017-2022) (2022-2023)
Services in Slums
2 A. The City/Regency Has
Established and Operate 100%
Can't be
the Housing and 90% 100% (116 Cities)
measured yet
Settlement Task Force
(Pokja PKP)
B. Contribution of
Matching Funds at City/
Regency Level from
Local Government, Can't be 42.96%
15% 87.2%
Private and measured yet
Communities to
Program Allocation
Funds
3 A. Percentage of
74.79%
Kelurahan/Villages Can't be
50% 152% (878 Kelurahan/
Implementing PPMK measured yet
Villages)
Activities
B. Increased Access to
5% to 20% 17% 46.9% 46.9%
Savings Accounts
C. Economic SHG
< 50% 22.0% 75.4% 75.4%
Experiencing Business

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 Finalization of
Outcome Performance Preliminary
No Target Baseline Preliminary
Indicators Impact
Impact
Improvement and
Expansion
D. Percentage of BDC
Can't be
Operating and 50% 100% 100%
measured yet
Sustainable
E. Percentage of Potential
50% 41.2% 78.0% 78%
SHGs served by BDC

C. Outputs
Overall output KPI performance achievements, 19 output indicators have exceeded the target in
the NSUP Preliminary Evaluation position, including:
Table 3. NSUP Preliminary Impact Evaluation Output Achievements

No Output Performance Indicators Target baseline Preliminary Impact

1 A. All Kelurahan/Villages carry out and 1,174 0 1,423 Kelurahan/
complete the activities in the Open Menu ward Villages (122,1% of the
target KPIs)
B. Infrastructure assets built 3-5 years earlier 50% 0% 80.9%, in good
were in good condition when surveyed to 70% condition
C. At least 2 million people directly benefit from 2 million 0 2,690,002 people
Investment Fund Assistance people (131% of KPI targets)
2 A. All selected cities (50 Regencies/Cities) have 50 Cities 15 cities 50 cities (100% of KPI
formed and are running Housing and target)
Settlement Task Force (Pokja PKP) for slum
management and have completed the RP2KP-
KP (SIAP) documents at the city/district level
B. More than 95% of infrastructure built 95% Can't be 98.1% in good
assessed as good quality in Year 4. measured condition
yet
C. More than 40% of the members of the >40% 0 95.7% (111 out of 116
Housing and Settlement Task Force (Pokja Cities/ Regency)
PKP) or similar institutions are at least from
the private sector
3 A. The Livelihood Improvement Program was 90 Can't be 97 Kelurahan/Villages
rolled out for at least 50% of Kelurahan/Vill measured
kelurahan/village in Year II and 90 ages yet
kelurahan/village at the end of the project.
B. At least 25,000 people receive financing from 25,000 50,326 117,382 people (old
Livelihood Programs people (old livelihood activities),
livelihood 27,750 people (new
activities) livelihood activities)
C. 15 feasibility studies to build a new BDC all 15 F.S 0 15 F.S
completed in Year 2
D. At least 15 new Business Development 15 BDC 0 15 BDC
Centers (BDCs), established and operational
Year 3.
E. Skills training is provided to at least 500 500 CSM 0 1,510 SHGs or 100.7%
potential SHGs facilitated by 15 BDC ICDD and 1000 of the target
III in year 2. Skills training is provided to at SHGs 1,500 SHGs

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 No Output Performance Indicators Target baseline Preliminary Impact
least 1000 potential SHGs facilitated by 15
new BDCs
4 A. The digital financial service strategy is - Not Has been implemented
finalized in the first year implement in 2018
ed yet
B. At least 165,000 people (about 33,000 SHG) 165,000 0 243,025 people or
opened a savings account by the time the people 39,180 SHGs
project was completed. (about
33,000
SHG)
5 Intermediate level and advanced level training 49,500 0 160,490 people (324.2%
provided to all kelurahan/village at the end of person of the KPI target of
the project at least attended by 49,500 people)
49,500 participants
6 Review of the existing curriculum, develop - Not 15 curricula have been
modules and implement TOT until the end of the implement reviewed and modules
project ed yet upgraded
7 A. Project printed materials and audio-visual - In the It's been done
materials are prepared and disseminated process
nationally and internally until the end of the
project
B. Mid-term (Year 2) and final evaluations and 3 5 0 KME activities 5
other thematic studies conducted at the time activities including
of project completion. Midterm I Evaluation,
Preliminary Impact and
3 thematic studies and
all have been carried
out,
C. At least 5 manuals on best practices on the 5 0 5 Documents
NSUP program were produced and translated
into English, Arabic and French by Year 5.
8 A study abroad mission is completed in Year 3. - Not Study abroad and IsDB
implement review missions have
ed yet been carried out 2 times

4.3. Assessment Based on Criteria

A. Relevance
NSUP is still relevant because it is in line with government policies and strategies regarding
slum reduction. The program context is expanded to anticipate the implementation of the
2020-2024 RPJMN and 2020-2024 PUPR Strategic Plan.
Alignment with IsDB Strategy
The objective of the project according to IsDB Key Strategy is to promote “Poverty
Alleviation” (IsDB Main Strategy No.2), “Welfare of Society” (Primary Strategy No.5) as
described in IsDB 10 Year strategy (2015-2025).
The Member Country Partnership Strategy (MCPS) is in line with the Government of
Indonesia's development priority agenda emphasized in the RPJMN. There is no change in
IsDB strategy alignment.

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The implementation of the NSUP activities up to the Preliminary Impact period according
to field observations shows alignment with the IsDB strategy.
Alignment with SDGs Numbers 11 and 6
The NSUP is in line with SDGs goals number 6 and number 11.
• SDGs goal number 1 is to end Poverty in All Forms Everywhere.
• SDGs goal number 6 is to ensure the availability of sustainable water and sanitation
management for all. The achievement of proper water access for urban communities
during the Preliminary Impact period was 90.55% from 49.5% at the baseline and the
KPI target was more than 90%. The achievement of access to proper sanitation for urban
communities during the Preliminary Impact period was 90.95% from 70.6% at the
baseline and the KPI target was more than 90%.
• The goal of SDGs number 11 is to ensure access for all to adequate, safe and affordable
housing and basic services and improve slums.
• The implementation of NSUP activities until the Midterm II period according to field
observations shows alignment with SDGs Numbers 1, 6 and 11.
• MDGs become SDGs that remain relevant in alleviating slum housing and settlements.

Alignment with Government Strategy

❑ RPJMN
▪ The City Without Slums Program (KOTAKU)/National Slum Upgrading Program
(NSUP) directly responds to the RPJMN (2015-2019) and is designed according to
principles directed at empowering communities and strengthening the role of local
governments to accelerate the '100-0- 100” (100% connection to water supply, 0%
slums and 100% access to sanitation facilities).
▪ This program is also relevant to the RPJMN (2020-2024) through the 5th agenda,
namely strengthening infrastructure to support economic development and basic
services
❑ PWH (Public Work and Housing) Ministerial Regulation No. 14 Year 2018:
▪ The NSUP as a means of alleviating slums in urban areas by improving the quality
of slum settlements in urban areas based on the criteria for slum housing as referred
to in Article 18 paragraph 1 includes: Buildings; Neighborhood Road; Provision of
Drinking Water; Environmental Drainage; Wastewater Management; Waste
Management; and/or Fire Protection.
▪ The implementation of NSUP activities will refer to PWH Ministerial Regulation
No. 14 of 2018 concerning Prevention and Quality Improvement of Slum Housing
and Slums.

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 ▪ Community gathering activities in the cycle stages were hampered due to the
COVID-19 pandemic related to zoning and licensing of the COVID-19 Task Force
and restrictions (PSBB & PPKM).
▪ The slowdown in activities in the field due to the COVID-19 pandemic, including
the ban on going abroad, has an impact on the C3 component. In order to respond to
this, NSUP applies an online method for all activities which results in a decrease in
activity progress due to adjustments to the approach in the framework of the COVID-
19 response.
▪ The Excecuting Agency (AE) has made adaptations, so that the results can be on
target.
▪ CFW (Cash for Work) activities and NSUP work-intensive activities are an effort to
solve basic infrastructure problems for slum settlements, on the other hand as an
effort to restore the community's economy during the COVID-19 pandemic that hit
all parts of Indonesia. CFW activities up to the June 2021 period have been carried
out in 707 urban villages.

B. Effectiveness
During the NSUP Preliminary Impact Evaluation period, the program was considered
effective, for the following reasons:
Indicator
Target achievement Haven't Reached the
Exceed Target
Target
impact 100% 3 -
Outcomes 100% 10 -
output 100% 19 -

1) All 3 impact indicators have exceeded the target,

2) All 10 outcome indicators have exceeded the target.
3) All 19 output indicators have exceeded the target.

C. Efficiency
Efficiency calculations can be seen from the results of the project's economic analysis and
efficiency analysis from the perspective of beneficiaries.
Efficiency Costto achieve output (Output/Cost Ratio > 1)
• Efficiency in cost is done by comparing the average cost (Rp. 000) of each type of
basic infrastructure built in handling slums, including roads Rp. 355, drainage Rp.
557, bridges Rp. 3,269, toilets Rp. 50,520, solid waste Rp. .9,789, clean water Rp.
100, waste disposal Rp. 493 and RTH/P Rp. 1,226. It is cheap because it is supported
by high community self-help and technology that is not complicated (non-
sophisticated/ applicable).

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 • Anticipating a slowdown due to the COVID-19 pandemic is appropriate with the
Extension of the Loan Closing Date until December 2022, so that all activities can
potentially be completed.
Efficiency in Technical Assistant
• The percentage comparison of the cost of Technical Assistance when compared to
the Total Project Cost is 6.41%.
• The percentage comparison of the cost of Technical Assistance when compared to
the Total Infrastructure Investment is 7.66%.
• Technical Assistance contributed to the emergence of collaboration funding of
62.87% of the value of the built infrastructure.
Efficiency in Targeting Beneficiaries
▪ The NSUP Fund Expenditure as of April 30, 2023 is = USD 305.72 Million or 97.31%
of the total fund.
▪ The number of Direct Beneficiaries as of 31 December 2022 was 2,627,944 people,
134.5% of the KPI target of 2,000,000 people.
• The Cost Efficiency value for reaching its direct beneficiaries is 1.45 or there is a
decrease in cost per beneficiary of 38.27%.
The NSUP is Decent and Beneficial
• Because it has a benefit level of > 1 (B/C Ratio= 1.57) of investment costs.
• Economic Interal Rate of Return> The discount rate used is 37.38 > 12%.
Thus, the analysis supports the assessment of the existence of project efficiency.

D. Sustainability
NSUP has the potential for sustainability, with several indicators including:
1. Existence of Institutions that Operate and Maintain Existing Facilities and Infrastructure;
a) Based on MIS data, there are management institutions that manage facilities and
infrastructure by forming 1,377 management groups, with 6,151 activities.
b) Based on survey data, of the 1,377 KPPs that were formed, assuming 1 sub-district
and 1 KPP, there are 60.9% of kelurahan that have built Public Toilet and clean water
infrastructure so they really need a KPP. Of the 60.9% KPP, 67.6% are functioning.
c) As of June 2021, KPP Community Training (Pelmas) in 2020: 1,629 people, in 2021:
8,569 people.

2. Special training and artisan certification;

a) As of June 2021, National Builders certification was carried out in collaboration with
Bina Construction, out of a total of 7,190 certification participants (2020: 1,760 and
2021: 1,391), 6,852 people were competent (2020: 988 and 2021: 1,256).
b) Of the 6,852 competent people, 1,103 people are involved in the 2021 Government
Assistance to the Community (BPM) construction activities.

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3. Infrastructure quality;
The survey results show that the surveyed infrastructure assets built 3 to 5 years ago were
in very good condition 6%, 72% good, 20% moderate, and 2% not good.

4. Availability of Slum Baseline Survey, RPLP, and RP2KPKP

The Sustainability aspect also includes the availability of a Baseline Survey for Slums and
RPLP which are prepared in a participatory manner by involving the three main elements
of development, namely the community sector, the government sector and the business
sector in the decision-making process, by giving the final decision-making role to the
community sector for whom development will be carried out in the future. Data is collected
in MIS NSUP, then the Housing and Settlement Task Force (Pokja PKP) needs to provide
tools to update every year as a database for the issuance of Regency/City Slum Decrees

5. Program Replication by Local Governments;

a) Local Government Sustainability
▪ Establishment of Housing and Settlement Task Force (Pokja PKP) and PKP
Forums in accordance with PWH Ministerial Regulation No. 12 of 2020
concerning the role of the community in managing housing and residential areas
to encourage local governments to replicate the program.
▪ Status as of April 2023 of the 156 NSUP Target Regencies/Cities in the IsDB area
in 15 Provinces, 130 Regencies/Cities already have Housing and Settlement Task
Force (Pokja PKP) Decree (83.3%) the remaining 26 Cities/ Regencies (16.7%)
still do not have Housing and Settlement Task Force (Pokja PKP) Decree.
Meanwhile for the establishment of the PKP Forum, out of 156 Regencies/Cities,
48 Cities/Regencies (30.8%) already have a PKP Forum Decree while the
remaining 69.2% are 108 Regencies/Cities do not yet have a PKP Forum Decree.
▪ Using the same design and system, Batam City Government, Bogor Regency,
Bekasi Regency and the city of Sukabumi created a program for providing urban
infrastructure under the name BERSEKA (Cleaning Healthy Berkah).
▪ Replication of sharia financing in Bogor City, Ciamis Regency, Tasikmalaya
City, Tasikmalaya Regency, West Bandung Regency, Pangandaran Regency,
Garut Regency, Banjar City and Cianjur Regency.

b) Community level sustainability

▪ The city of Padang Sidempuan is pioneering the Sharia Revolving Economy, by
holding a socialization of the Sharia Revolving Economy at the Labuhan Labo
Village Hall, Kec. Padang Sidempuan Southeast.
▪ City-scale livelihood development by the community in Majalengka Regency
(Majalengka Mart).

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5. Conclusions and Recommendations
5.1.Conclusion
A. Design and Implementation
1) The design and implementation in general during the Preliminary Impact Evaluation had
been carried out, especially the environmental scale with a score of 3.76
2) In the context of the NSUP, the program has adapted to the enactment of the 2020-2024
RPJMN including new goals and targets
3) The target of reducing slum PAD of 11,218 Ha is in line with the 2015-19 RPJMN target
and also responds to the 2020-24 RPJMN target with a target of 4,896 Ha and sub-
districts to 1,423 sub-districts.
4) During implementation, there were several new policies and regulations that did not
change the program design but required adjustments in program implementation and
evaluation. Among the new policies is the implementation of deterrenceslum areas and
livelihood implementation approaches.
5) Policy on slum prevention activities is carried out with supervision and empowerment.
6) The livelihood implementation approach policy is carried out by building supporting
infrastructure for the economy.
7) In 2023 CFW activities have been carried out with a different concept from 2021 which
is a maintenance activity/OPOR (Operational Maintenance Optimization and
Rehabilitation). There is an optimization of City-scale activities in the 3 areas that have
been worked on previously.
.
B. Relevance
1) The relevance of the NSUP in general during the Preliminary Impact Evaluation program
is in line with government policies and strategies regarding slum reduction. So the
relevance score is 3.72.
2) The program is still relevant, and the program context has been adjusted to the targets of
the 2020-2024 RPJMN and 2020-2024 PWH Strategic Plan
3) Until the Preliminary Impact period, the program has contributed to achieving the target
of 100-0-100:
4) Contribution to increasing access to proper clean water for urban communities;
5) Contribution to the decrease in the percentage of people living in urban slums;
6) Contribution to increasing access to proper sanitation for urban communities
7) Regional scale infrastructure development in the Preliminary Impact position of 50
packages (47 packages in 2019-2022 and 3 packages in 2023 to complement/optimize
previous regional activities). The area-scale approach is an increase in environmental
(tertiary) access to regional and city-level infrastructure (secondary/primary), by
integrating environmental, regional and city infrastructure.
8) Benefits of regional scale infrastructure development: 1. Integration of environmental,
regional and city infrastructure; 2. Improvement of neighborhood level accessibility; 3.
Regional-level numerical reduction of slums.
9) The community's economic recovery stage during the COVID-19 pandemic, CFW (Cash
for Work) activities and the NSUP as an effort to solve basic infrastructure problems for

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 slum settlements, on the other hand as an effort to restore the community's economy
during the COVID-19 pandemic that hit throughout Indonesia.

C. Effectiveness
1. The Program Effectiveness Score is 3.96, because all KPI Impact, Outcome and Output
targets are above target, the remaining 1 of 19 Output indicators are almost complete
(94.7%)
1. All target villages have realized open menu activities, in accordance with the proposals
in the RPLP, supported by activities carried out in Area Scale activities
2. The impact of COVID-19 on the implementation of NSUP resulted in a slower rhythm
of activity implementation and target achievement. The slowdown that occurred included
the performance of activities at the office, in the field, performance due to institutional
level, and performance due to decision making at different institutional levels and other
factors.
3. Acceleration of the implementation of activities has been carried out, so that there has
been a restoration of the effects of the COVID-19 Pandemic in the performance
achievements of the NSUP-IsDB program activities

D. Efficiency
1. The efficiency of the NSUP in general, the average KPI indicator achievement is already
99% in the Preliminary Impact position. However, in terms of the timeline, the
implementation time has increased by 25 months, originally planned for 4 years to 6
years and 1 month, so the efficiency score is 3.68
2. During the Preliminary Impact period, the program has been implemented efficiently:
3. The program has succeeded in raising city-level assistance funds originating from the
Regional Government, the private sector and the community.
4. Community-based environmental scale infrastructure development is proven to be
cheaper (efficient) than contractual infrastructure development.
5. Community infrastructure development activities have a B/C ratio of 1.57 of investment
costs
6. The total findings of Environmental Scale Activities amounted to Rp. 3,714,811,328 of
the total fund block investment component A1 (Environmental Development Scheme for
Infrastructure at Slum Management) of Rp. 2,221,553,128,000 or 0.17%. The number of
findings is a very small percentage compared to the investment block in component A1.
The amount of funds that have been returned is Rp. 3,664,605,693 or 98% of the amount
found. Of these very small findings, most have even been returned.

E. Sustainability
1. The NSUP sustainability aspect score in the Preliminary Impact Evaluation position was
3.72. During the Preliminary Impact period, the program has succeeded in preparing
institutions to ensure the sustainability of slum management, namely:
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 2. There is potential for sustainability in the area being built, in the form of: the percentage
of infrastructure quality is 98.95% and the level of community satisfaction with the
availability of infrastructure built is 94.6%.
3. Capacity building of handyman human resources with certified training to support the
sustainability of program results.
4. The existence of KPP with 67.6% functioning, especially in KPP that maintains
exclusive infrastructure.
5. Availability of Slum Baseline Survey and RPLP prepared in a participatory manner
6. There is replication of the NSUP by the local government in several regions.
7. KPP Operational and Maintenance Training on an area scale in 27 Regencies/Cities in
area scale locations that have completed construction and are entering the maintenance
period for 2,134 participants.
8. In 2022, City Scale KPP Training was carried out, 90.2% of training participants from
the Preliminery Impact survey felt the benefits for future City Scale KPP activities.

F. Factors Influencing Program Target Achievement

1. Local Governments (Pokja, Bappeda and Perkim) are active in achieving program
targets; through the issuance of regional regulations or decrees on slum settlements,
district/city planning, development of LARAPs (Land Acquisition and Resettlement
Action Plans) and DED budgets for city-scale programs and collaborating on various
slum management program activities.
2. High level of community participation; The community empowerment approach has
been applied consistently since ICDD, which places the community as the main program
actor.
3. Strong institutions; BKM is the prime mover of society, a forum for aspirations and a
catalyst for the emergence of social capital, while KPP is a community institution
responsible for maintaining infrastructure. Housing and Settlement Task Force (Pokja
PKP) Decree acts as an institution that is responsible for collaborating on various slum
management programs.
4. Spatial and participatory planning; implementation of spatial based planning (GIS),
the community prepares RPLP and is consolidated with RP2KPKPK at the Regency/City
level which is prepared by the PKP Working Group and approved by Decree of the
Regent-Mayor. The implementation of the one map policy encourages all stakeholders
to work together with the same reference.
5. Strict transparency and accountability; various accountability instruments are
implemented through financial reports, MIS-based monitoring and evaluation,
independent audits/KAP, government audits (BPKP and Regional Auditors), and
minimization of misuse of funds.
6. Encourage collaborative action; Collaboration has been developed from preparation to
program sustainability. This can be achieved due to high accountability and transparency
(resulting in a high level of trust among stakeholders), so that they are actively involved
in the NSUP.

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 7. Good program management; each element and procedure of the program has been
regulated in guidelines and SOPs, then implemented in a structured and organized
manner.

G. Steps to Improve Target Achievement Strategy for Similar Programs in the Future
1. Seeing the success of implementing collaboration in Regency/City slum management
activities, optimizing the role of the community is important. This is in line with PWH
Ministerial Regulation No.12/2020 concerning the Role of the Community in Handling
Slums. Capacity building and assistance is needed so that Regency/City PKP Forums
and Working Groups have sufficient capacity in dealing with slums and can foster
collaboration, besides that technically Housing and Settlement Task Force (Pokja PKP)
Decree (OPD (Local Agencies) in the field of PKP) need to increase their capacity
regarding planning, implementation and control aspects.
2. Providing assistance to the Regional Government (Pokja PKP, Bappeda and Perkim
Office) in drafting regulations and planning for handling slums that are in sync with
regional development policies and planning, bearing in mind that the SPM for Housing
and Settlement Areas is more directed towards the construction of disaster-affected
houses and regional development. The division of authority in handling slums for
districts/cities, provinces and the center needs to be emphasized more, with the hope that
district/city governments will become more focused on completing their obligations
according to their authority and can support the provinces and the center in completing
their obligations. It is necessary to encourage Working Groups at the central, provincial
and district/city levels to facilitate the coordination of the implementation of slum
management authorities.
3. Adjusted the nomenclature of slum handling activities, so that there is a similarity in the
use of slum indicators with reference to meeting the target of livable and affordable
settlements (UU No.1/2011). Therefore indicators of livable housing and affordability
need to be considered. Another aspect that needs attention in dealing with slum
settlements is the phenomenon of the existence of illegal slum settlements in several
locations.
4. The systems, guidelines and database (MIS) built by NSUP have proven to contribute to
the success of the program. These systems and guidelines can be adopted by local
governments to implement similar programs. Among the systems and guidelines are
MIS, GIS, Information and problem management (PIM), Guidelines and POS, and e-
learning. The guidance system and database (MIS) in the NSUP need to be packaged in
the form of best practices, lessons learned, and models according to the needs of the
Regional Government at the Regency/City and Provincial levels.
5. Currently, on an City scale where construction has been completed, the local government
has formed a management agency, however, the management agency has not actively
involved community representatives or KPP on an Neighborhood scale. It is necessary
to increase community capacity (KPP) so that they can contribute in helping the regional
government utilize and maintain the infrastructure that is being built. In the future, it is
necessary to place more authority and obligations on slum management related to the

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 scale of the area according to the division of authority at the central, provincial and
district/city levels.

5.2.Recommendation
A. Design and Implementation
The implementation of the City Scale is carried out first or Together with the Environment
Scale, so that the connection between the Neighborhood Scale (Tertiary Infrastructure) and
the City Scale (Primary and Secondary Infrastructure) can be done easily:

B. Relevance
Some adjustments need to be made:
1. Align program performance targets with the 2020-2024 RPJMN slum reduction targets
2. Aligning the implementation of activities with other policies that emerged after the
preliminary impact
3. The implementation of area-scale activities can still go according to plan, but it is
advisable to make adjustments to the targets (number of regional/city targets) that are
related to the readiness of the Regional Government (institutions, planning, data
management and system support).
4. CFW (Cash for Work) activities and NSUP work-intensive activities as an effort to solve
basic infrastructure problems in slum settlements need to be continued.

C. Effectiveness
1 In the implementation of the program, the implementation of activities has been
accelerated, so that there has been a restoration of the effects of the COVID-19 Pandemic
in the performance achievements of the NSUP-IsDB program activities which have
resulted in overall KPI achievements, so this practice needs to be documented for future
learning
2. Considering the effectiveness and benefits of environmental-scale activities for
anticipating the impact of COVID-19 through a labor-intensive pattern in 2020 for
residents affected by COVID-19, this labor-intensive pattern is continued through the
Cash for Works (CFW) pattern.

D. Efficiency
1. In order for the program to remain efficient after the Preliminary Impact Evaluation it is
recommended:
2. Continue to apply an approach that encourages community self-help
3. Strengthening Regional Governments so that Regional Governments are able to access
DAK Integration by way of outreach to Regional Leaders and assistance to the PKP
Working Group regarding the mechanism of the DAK Integration program (updating of
slum baseline data, land consolidation and planning documents).

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 4. Strengthening local government capabilities through assistance in preparing BKM and
UPK to manage revolving SMF activities and building community readiness to accept
and carry out revolving rules agreed by all beneficiaries.
5. Implementation of monitoring and evaluation needs to be carried out in stages to
maintain the efficiency of program implementation.

E. Sustainability
To further increase the potential for sustainability after the Preliminary Impact period, it is
recommended:
1. Increase the capacity of KPP 32.4% which are still not operating actively, through
sectoral support (Perkim Service, PUCK Service, Environment and others) as well as
support from the Regional Government through the Camat/Lurah/Village.
2. Strengthen the capability of the Regional Government to be able to prepare detailed and
complete slum baseline data from residential aspects by utilizing GIS data.
3. Strengthen the capacity of local governments to be able to make comprehensive plans in
preparing replication activities and encourage BKM institutions to synergize and be able
to access replication programs rolled out by local governments.
4. Strengthening local government capacity and capability:
▪ Cities with high/low Fiscal and high Readiness, supervision to ensure consistent
areas implement slum management, local government as the captain in collaboration
(aspect of data collection);
▪ Cities with high Fiscal and low preparedness, strengthening the capacity of local
governments and communities related to the 4 pillars of sustainability (planning and
institutional)
▪ Cities with low Fiscal and low preparedness, motivating, strengthening the capacity
of local governments and communities in managing slums in a sustainable manner
and preparing the 4 pillars of sustainability (planning, institutions, data collection
and support systems).

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