Ex-post Evaluation

1. Outline of the Project

Country:

Republic of Indonesia

Project title:

The Telephone Outside Plant Construction Center Project in Indonesia

Issue/Sector:

Telecommunications

Cooperation Scheme:

Project-type Technical Cooperation

Division in Charge:

First Technical Cooperation Division, Social development Cooperation Department

Total Cost:

700 Million Yen

Period of Cooperation

20 November 1994 – 19 November 1998

Partner Country’s Implementing Organization:

Directorate General of Posts and Telecommunications; Ministry of Tourism, Posts and Telecommunications
P. T. Telekomnikasi (TELKOM)
Outside Plant Construction Center (OPCC)

Supporting Organization in Japan:

Ministry of Posts and Telecommunications
Nippon Telegraph and Telephone Corporation (NTT)

Related Cooperation:

Third-country Group Training “Telecommunications Outside Plant Construction Supervisory”

1-1 Background of the Project

The Republic of Indonesia, despite the recent economic development, found that an obstruction to the further growth of its economy was its existing, undeveloped communications systems, especially the poor condition of telephone lines. At the end of FY1993, the number of telephone subscribers stood at 1.5 million, accounting for for only about 0.8 percent of the total population of 190 million, the lowest level among ASEAN member countries. The 6th National Five-year Development Plan launched in fiscal 1994 called for one million lines to be installed annually (a total of five million lines in total). New switchboards and telephone lines were set up for this expansion, but the ratio of telephone line failure (the number of failures per one hundred units a month) was a high 4.1 in 1992 (compared to 0.2 in Japan).

This high ratio was attributed to insufficient telephone line construction. The line construction process was poorly supervised in terms of the design, construction methods and materials, and construction supervisory skills.

Under these circumstances, the Indonesian government requested Japan to provide technical cooperation to establish P. T. Telekomunikasi (hereinafter TELKOM) standardized construction criteria, standardize line construction, and train construction work supervisors in order to improve the management of telephone line construction.

1-2 Project Overview

The Project transfers technology for constructing and inspecting telephone lines and trains the TELEKOM staff involved in supervising telephone line construction in Indonesia.

(1) Overall Goal
To improve the quality of the telephone communications outside of plant construction (TOPC).

(2) Project Purpose
To establish a supervisor training course and train personnel in charge of TOPC supervision.

(3) Outputs
1) The TELEKOM staff is trained in TOPC work, supervision and inspection methods according to the revised work methods in the fields of the cable engineering, civil engineering and subscriber premises engineering at the TELEKOM training center.
2) The TOPC problems are to be identified and countermeasures found in the course of preparation and revision of the supervisor training course.
3) The revised TOPC standards and methods are to be disseminated to WITELs.

(4) Inputs

2. Evaluation Team

Members of Evaluation Team

Team Leader: Yuji OTAKE (JICA Indonesia Office)
Data Collection: Kazuhiro YOSHIDA (Office of Evaluation and Post-project Monitoring, Planning and Evaluation Department, JICA Head Office)
Ex-Post Evaluation Analysis: Kaneyasu IDA (IC Net Limited)
Ex-Post Evaluation Analysis (Local Consultant): Lutfi BAKHTIYAR (University of Indonesia)

Period of Evaluation

17 February 2002 – 19 March 2002

Type of Evaluation:

Ex-post Evaluation by Overseas Offices

3. Results of Evaluation

3-1 Summary of Evaluation Results

(1) Impact
The overall goal of the project was “to improve the quality of the TOPC,” and one of the measures by which this was to be achieved was a lowering of the ratio of telephone line failure to less than 1.0. The ratio had stood at 0.6 in 1999, but rose again to 1.3 in 2000 and to 1.7 in 2001. The main reason for the low ratio in 1999 was a higher level of supervisor skills. Also crucial to the impact was that spare parts could be obtained through the JICA Project, compensating for the insufficient budget. Meanwhile, the fault ratio rose from 2000 to 2001 due mainly to external factors. The most significant reason here was the collapse of agreements with private companies that were to perform further construction and maintenance work on telephone lines. As a result, TELKOM lost cooperative agreements with other companies in six regions; and, because the lines could not be maintained, the ratio rose again. Since then, the popularity of the Internet in urban areas has made it necessary for supervisors to have technical data telecommunications skills in addition to skills in conventional telephone technology. This change has raised new issues regarding supervisor response to new technology.

(2) Sustainability
Organizational, financial and technical sustainability are observed. However, in terms of human resources, the number of young instructors should be increased. The details are as follows:
1) Although there is some fluctuation in the number of OPCC instructors, there are about 12 instructors at OPCC. It is necessary to increase the number of personnel so more training courses are needed. In addition, all instructors are over the age of 45, so the number of young instructors should be increased in response to technological innovation in the pertinent fields.
2) TELEKOM went through an organizational change while the Project was being implemented, and Project jurisdiction was changed from the development Division (abolished) to OPCC. Consequently, the Project's key roles to standardize construction work and to disseminate the acquired technology through regional dissemination of the technology were moved from the scope of work to be achieved and training management has become the Project’s main role. Even after completion of the Project completion, OPCC has been maintained as a training institution.
3) OPCC's budget from 1998 to 2001 came from the revenue of TELEKOM's merged business division through the KSO (Joint Operation Scheme) method and from the direct budget allocation of TELEKOM. There has been little change in the amount allocated by each, and OPCC has been able to maintain an annual budget of between 112 and 128 million rupiah.
4) The Third-Country Group Training “Telecommunications Outside Plant Construction Supervisory” has been implemented (1998-2002) and the local in-country training “Telecommunications Outside Plant Construction Technology” (1999-present) is currently being implemented, primarily by OPCC instructors with the assistance of JICA. These are intended to maintain the technology transferred in the Project.
5) Judging from the effects of the project, sustainability is generally maintained. The Project enabled the implementation of six newly created courses. The economic crisis in 1998 restricted the number of courses and trainees, but after 1999, over 100 trainees were accepted every year. However, the caravan-type training, which targets regional areas and companies and received high appraisal after the Project was completed, is no longer implemented due to insufficient funds. Meanwhile, the facility for practical training constructed during the Project was properly maintained and utilized. Educational materials were renovated, and new materials, such as an optical fiber system and MPC cable system have been developed.

3-2 Factors that promoted realization of effects

(1) Factors concerning Planning
N/A.

(2) Factors concerning the Implementation Process
N/A.

3-3 Factors that impeded realization of effects

The telephone line failure ratio rose between 2000 and 2001, but this was primarily due to external factors. The most significant reason was the collapse of agreements with the private companies providing further construction and maintenance services for the telephone lines.

3-4 Conclusion

The Project goal of providing training to over 100 trainees annually is currently being achieved on an ongoing basis, and during the 1998/1999 period, improved supervisor skills have resulted in a lower line failure ratio. However, OPCC instructors must improve their technical skills on a continuous basis in order to teach supervisors how to deal with technological innovations.

3-5 Recommendations

(1) It is necessary to foster junior instructors in order to respond to technological innovations.

(2) It is necessary to revise supervisor qualification requirements in order to secure the quality of supervisors.

(3) It is necessary to convey any information concerning construction and maintenance problems to the related departments of OPCC, and to establish affiliations between the departments so that countermeasures are reflected in the contents of the training.

3-6 Lessons Learned

TELEKOM's external factors interact to influence the impact of lowering telephone line failure ratios. Therefore, the external factors should be monitored during the Project term, and discussions held with related organizations on other factors at the policy level.

3-7 Follow-up Situation

Third-country Group Training “Telecommunications Outside Plant Construction Supervisory” (1998-2002) was implemented.