Indonesia, like many middle incomecountries, has difficulty providing universal access toeducation and adequate access to healthcare, particularly inpoor and rural areas. To tackle these problems, theGovernment of Indonesia launched two large-scale programs in2007. The programs both relied on cash transfers, but onetargeted households and one targeted communities. In bothcases, the transfers were designed to encourage families tomeet basic health and education indicators, includingprenatal visits for pregnant women, childhood immunization,regular weight monitoring, and school attendance. To pushcommunities to focus on the most effective policies, aportion of subsequent year grants is based on how wellcommunities do in meeting the previous year's healthand education targets. In this way, the program takesaspects of conditional cash transfer and pay-for-performanceprograms and reformulates them to encourage community-wideperformance and accountability. In order to test theeffectiveness of linking grants to the previous year'sperformance, a second version of the program was carried outin which communities received the money irrespective of theprevious year's performance. The grants have rangedfrom an average of $8,500 in 2007 to $18,200 in 2009. ThisWorld Bank supported program now reaches about 5.4 million people.
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