Policy expertise

Supporting private sector development in Indonesia

Policy Area
World Bank
OPM contact

This evaluation project has provided a framework for the implementation of more efficient and effective private sector development facilities and projects in Indonesia. We undertook a comprehensive review of the second Program for Eastern Indonesia Small and Medium Enterprise Assistance (PENSA 2), a multi-donor, IFC supported facility that aims to improve private sector development across the region. We reviewed the performance of the overall programme and conducted in-depth reviews of selected projects. Theory-based approaches to evaluation were complemented by Political Economy Analysis to assess performance against a number of OECD-DAC and IFC criteria. We used evidence from both desk-based research and fieldwork, including stakeholder interviews and focus groups and the evaluation provided learnings that led to actionable recommendations for the IFC to implement in its future facilities and projects.

Established in 2008, the PENSA 2 operates as a collection of diverse projects spanning areas including access to finance, agriculture, forestry, green building regulation and corporate governance. The IFC-funded facility aims to improve livelihoods and reduce poverty by creating opportunities for the development of small and medium enterprises in Eastern Indonesia.

This evaluation project addresses the need for evidence to ensure the accountability of PENSA towards its donors and stakeholders and to inform future phases of programme operation.


We worked closely with the IFC to develop an appropriate approach to review both the overall PENSA 2 facility and a selection of its individual projects. Counter-factual questioning was used to assess impact against the OECD-DAC criteria of relevance, efficiency, effectiveness, impact, sustainability, and the IFC criterion of additionality. Value chain analysis and theory-based evaluation approaches were complemented by comprehensive Political Economy Analysis (PEA).

Individual review teams were established to evaluate each of the selected PENSA 2 projects and findings from these discrete reviews were used to complement the overall facility review. Specific areas of work included:

  • Completing desk-based reviews of facility and project documentation and literature relevant to individual project contexts
  • Conducting semi-structured stakeholder interviews
  • Conducting focus group discussions and in-depth interviews with beneficiaries of selected PENSA 2 projects
  • Undertaking comprehensive Political Economy Analysis (PEA) to identify key stakeholders, institutions and governance structures relevant to the facility and its projects
  • Producing final review reports highlighting overall facility performance as well as in-depth analysis of four PENSA 2 projects
  • Delivery of presentations to key stakeholders to discuss project findings

This project has provided crucial learnings and actionable recommendations for the IFC to implement in the next phases of PENSA 2. In turn, these should lead to improvements in the relevance, effectiveness, efficiency, sustainability and impact of programme interventions.

More broadly, the project has informed improvements in the design and management of future IFC-led multi-donor facilities, particularly those relating to the private sector. Over the longer term, improved private sector development in countries that the IFC works in should lead to the creation of economic opportunities and improved livelihoods for an even greater number of people.

Associate Consultant
Associate Consultant
Associate Consultant