<div><h4>Description</h4><p>The proposed investment project will address key constraints in planning and managing HCD: (i) leveraging digital technology to address challenges in fragmented, outdated, aggregated and unreliable data on labor and skills demand and supply; (ii) capacity constraints associated with competencies of civil servants in a fast changing world of work that increasingly requires tech-savvy and inclusive workforce; and (iii) institutional constraints for effectively developing talent and expanding options to test smart and innovative solutions with private sector partnerships. The government sees this project as a key initiative to build state capacity in driving inclusive reforms by leveraging technology to improve government effectiveness and make progress towards achieving its long-term development vision. The outputs are: (i) improved talent management system in the civil service; (ii) enhanced capacity of the civil service; and (iii) improved institutional capacity for talent management.</p><h4>Impact</h4><p><p>Human capital for achieving national development priorities strengthened (Medium-Term Development Plan, 2020-2024)</p></p></div>

Indonesia's Civil Service Talent Revitalization Project (formerly Talent Management and Human Capital Development for Civil Service)

Initial poverty and social analysis february 2020 ino: talent management and human capital development for civil service this document is being disclosed to the public in accordance with adb 's access to information policy. currency equivalents as of 7 february 2020 currency unit - rupiah rp rp1.00 = 0.07 3 1.00 = rp13,940 abbreviations adb - asian development bank bappenas - ministry of national development planning agency hcd - human capital development hcd p - human capital development program ict - information and communication technology lan - national institute of administration lmis - labor management information system menpan - minist ry of administrative and bureaucratic reform rpjmn - rencana pembangunan jangka menengah nasional medium -term development plan tma - talent management agency note in this report, refers to u nited states dollars . in preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the asian development bank does not intend to make any judgments as to the legal or other status of any territory or area. initial poverty and social analysis country: indonesia project title: talent management and human capital development for civil service lendingfinancing modality: project department division: southeast asia departmenthuman and social development division i. poverty impact and social dimensions a. links to the national poverty reduction strategy and country partnership strategy the government's rpjmn 2020 -2024 focuses on hcd as a critical driver of long -run economic growth and poverty reduction. the rpjmn 2020 -2024 will be complemented by a comprehensive hcdp that includes skills development strategies for public and priority private sectors. the government realizes that a professional civil service is a prerequisite for creating a high -performing bureaucracy and that this requires merit -based performance mana gement systems, accompanied by career guidance that is informed by market intelligence. data from the state civil apparatus commission in 2018 shows that only 6 of 74 government agencies had a very good merit system. bureaucratic reform is needed to ensu re that business processes of government are simple, responsive, adaptive, and open space for public participation. adb's indonesia cps for 2020 -2024 is closely aligned with the rpjmn. the cps seeks to support an i nclusive, competitive and resilient indone sia. support focuses on i hcd , ii accelerating investment , and addressing climate risk and promoting environmental sustainability . the cps contribute s to hcd through support to promote education quality, improve workforce skills, and increase soc ial protection coverage. a cross -cutting theme of the cps is strengthening governance, institutions and capacity as well as gender equality. the talent management and human capital development for civil service project is an overarching intervention that is aligned with the rpjmn and the cps by focusing on improving the capacity of the public sector to contribute to development priorities through strengthening their information systems, training investments, and institutional capabilities . the project contributes to the sustainable development goal on quality education . it links to adb's strategy 2030 operational priorities on: addressing remaining poverty and reducing inequalities ; on accelerating progress in gender equality ; and strengthening governance and institutional capacity . b.poverty targeting general intervention individual or household ti -h geographic ti -g non-income mdgs experience in indonesia and elsewhere in developing asia shows that human capital is a key driver of growth and poverty reduction. the proposed project is a general intervention that will enhance state capacity to deliver on hcdp and other public services that are essential for poverty reduction. professional civil service is key to facilitate economic growth and ensure that government's resources are used in efficient, equitable , and inclusive manner. c. poverty and social analysis both poverty and inequality , as measured by the gini ratio, have steadily declin ed in recent years, reaching 9.2 and 0.38 in 2019. however, 20.8 of the total population, or 56 million people, are clustered marginally above the poverty line. in addition, poverty in indonesia remains high for a lower -middle income country. estimates o f international poverty lines in 2017 indicate that 5.7 of the population fell below 1.90 a day, 27.7 fell below 3.20 a day, and 58.6 fell below 5.50 a day . the gini coefficient remains high at 0.3 8 in 201 9, reflecting widespread gender and regional disparities, especially apparent between urban and rural populations, and eastern and western provinces . additionally, the highest rates of poverty are found among families with children and the elderly population over age 60. the growing elderly populat ion will pose an increasing challenge to poverty reduction efforts as the number of people over age 60 will continue to rise at an increasing rate in the upcoming years. multi -dimensional inequality continues to be most severe in remote areas. 1. key issu es and potential beneficiaries. the beneficiaries of the project in the short and medium term are civil servants, but in the long run it is the larger population comprised of students in all levels of education, employed and unemployed workers, and employe rs. the success of the project will be based on whether government is able to deliver on hcdps , which ultimately should lead to higher economic growth, more and better jobs and reduction in poverty. constraints that work against the government's strategy f or achieving national development priorities include: i education and training programs that are not aligned with the skills and competencies required by the labor market; and ii low quality of public services that are hindered by an unfavorable regula tory environment; and outdated human resource management systems in the civil service that constraint talent development. 2. impact channels and expected systemic changes. empirical evidence demonstrates the direct positive correlation between level s of education, wage employment, and poverty reduction. in indonesia, the government's 2 policies include increased labor productivity in occupations for different skills levels and attracting enterprises requiring skilled and highly skilled workers; strengthening relevance of skills produced to employer skills needs has great potential for accelerating poverty reduction and reducing income inequality. 3. focus of and resources allocated in the trta or due diligence. the focus will be on assessing indonesia's civil service, focusing on current and future skills demand in the sector. as part of the project preparation, resources will be allocated to designing a n information system , including a design o f the digital platform and development of a 'beta site' for testing. ii. gender and development 1. what are the key gender issues in the sectorsubsector that are likely to be relevant to this project or program indonesia has made substantial progress in narrowing gender gaps in education. gender parity has now largely been achieved in enrollment a t all levels of education. for e.g., in 2017, the gross enrolment ratio for tertiary education was 38.5 for females and 34.2 for males. despite this, women's labor force participation rate has remained stagnant for the last twenty years at 51 -52.9 . similar figures can be found regarding youth employment aged 15 -24 with 6 million 60.49 of male youth and 3.9 million 39.51 female youth employed . further, there are fewer female researchers than males 43.7 in 2017 . 54 of indonesian working women are in the informal sector twice as much as men, in poorly paid occupations, and they earn on average 42 less than their male counterparts. one of the reasons for this is the limited job opportunities for women due to cultural bias and gender stereotyping . less than 10 of h igher paying jobs in the mining, electricity, gas, water, transportation, warehouse, and communication sectors are presently occupied by women . this disparity between men and women is also present in indonesia's civil s ervice, where jobs at both the national and sub -national level are dominated by men. even though female representation in civil service has improved since the 1970s, historical patterns of male dominance has continued, hampering state's ability to unlock t he economic potential of women in the civil service . for e.g., men hold over 70 of all national -level structural and management positions, while at the subnational levels over 90 of positions at the top government level are held by men. furthermore, educ ational attainment raises the probability of promotion in civil service, but less so for women. in other words, for the same age, work experience, educational attainment, province of birth and current government department, women are less likely than men t o promote each year . in general, f emale leaders in civil service play a critical role in supporting the implementation of policies targeting poverty reduction such as child health, nutrition and childcare, and education.2. does the proposed project or program have the potential to contribute to the promotion of gender equity andor empowerment of women by providing women's access to and use of opportunities, services, resources, assets, and participation in decision makin gyes no during due diligence and further preparation of the project, possible gender features will be identified for inclusion in the project design, including the dmf and the gender action plan. the intention is to provide women with equal access to indonesia's c ivil service including, hiring, retention promotion and better employment opportunities. 3. could the proposed project have an adverse impact on women andor girls or widen gender inequality yes no it will have a positive impact on women and girls by expanding participation in quality education. 4. indicate the intended gender mainstreaming category: gen gender equityegm effective gender mainstreaming sge some gender elements nge no gender elements at this stage, the intended gender category is egm. nevertheless, the possibility to elevate the gender category in design to gen will be explored during due diligence ba sed on the gender design features that can be included in the project, and depending on availability of reliable sex disaggregated baseline data, which can be used for setting evidence based gender targets. . participation and empowerment 1. who are the main stakeholders of the project, including beneficiaries and negatively affected people identify how they will participate in the project design discussions will be held with bkn, lan and menpan to design the right type of skills developm ent initiatives aimed at strengthen ing state's capacity for delivering on hcd . the functionaries at the lowest levels of government, who are responsible for the delivery of public services but risk losing out on training initiatives, will be consulted when designing capacity development interventions and skills development strategi es. digital systems developed by the project will be inclusive as they will be tailored to address the needs of all sectors and all levels of government, considering differences in digital skills and competencies. 2. how can the project contribute in a sy stemic way to engaging and empowering stakeholders and beneficiaries, particularly, the poor, vulnerable and excluded groups what issues in the project design require participation of the poor and excluded the project will support training programs targ eted at different levels of government, particularly provinces that are poorer compared to the national average. furthermore, it will consider the needs of 3 civil service in less developed provinces to develop skills development strategies and public interv entions to improve competency and skills of civil service. 3. what are the key, active, and relevant civil society organizations in the project area what is the level of civil society organization participation in the project design there are several ngos involved in the education and social sectors in indonesia, key ones including women's organizations will be identified and will be extensively consulted during project preparation. 4. are there issues during project design for whic h participation of the poor and excluded is important what are they and how shall they be addressed yes no ii. social safeguards a. involuntary resettlement category abcfi 1. does the project have the potential to involve involuntary land acquisition resulting in physical and economic displacementyes no2. what action plan is required to address involuntary resettlement as part of the ppta or due diligence process resettlement plan resettlement framework social impact ma trix environmental and social management system arrangementnone b. indigenous peoples categoryabcfi 1. does the proposed project have the potential to directly or indirectly affect the dignity, human rights, livelihood systems, or culture of indigenous peoples yes no 2. does it affect the territories or natural and cultural resources indigenous peoples own, use, occupy, or claim, as their ancestral domain yes no3. will the project require broad community support of affected indigenous communitiesyesno4. what action plan is required to address risks to indigenous peoples as part of the trta or due diligence process indigenous peoples planindigenous peoples planning frameworksocial impact matrix environmental and social management system arrangement none . other social issues and risks 1. what other social issues and risks should be considered in the project design creating decent jobs and employment adhering to core labor standardslabor retrenchment spread of communicable diseases, including hivaidsincrease in human trafficking affordability increase in unplanned migrationincrease in vulnerability to natural disasters creating political instability creating internal social conflicts others, please specify : political sensitivities around civil sector reform. 2. how are these additional social issues and risks going to be addressed in the project design regarding addressing political sensitivities around civil sector reform, the design of the project will focus on strengthening talent management within civil service to achieve government's priorities related to hcd . in the preparation of project outputs and activities, special attention will be paid to ensure that the project does not touch upon broader issues related to civil service reform in indonesia. vi. trta or due diligence resource requirement 1. do the terms of reference for the trta or other due diligence contain key information needed to be gathered during trta or due diligence process to better analyze i poverty and social impact; ii gend er impact, participation dimensions; iv social safeguards; and v other social risks. are the relevant specialists identified yes 2. what resources e.g., consultants, survey budget, and workshop are allocated for conducting poverty, social andor gender analysis, and participation plan during the trta or due diligence a gender and social development consultant is included to support adb staff to i conduct the poverty, social, and gender analyses, ii conduct needs assessment of indonesia's civil service , support design of targeted interventions on training need s, and iv ensure the design of digital systems are efficient and inclusive . adb = asian development bank, bkn = bada kepegawaian negara national civil service agency , cps = country partnership strategy , dmf = design and monitoring framework, hcd = human capital development, hcdp = human capital development program , lan = national institute of administration, menpan = minister of administrative and bureaucratic reform , ngo = non government organization, rpjmn = medium -term development plan , trta = transaction technical assistance . source: asian development bank.

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Talent Management and Human Capital Development for Civil Service: Initial Poverty and Social Analysis

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