|
Expression of Interest are invited for Comprehensive Market Analysis of Early Childhood Care and Education in Indonesia IFCa member of the World Bank Groupis the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion, including over $22 billion mobilized to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org. IFC and Gender in Indonesia Gender is a cross-cutting priority for IFC, as highlighted in the WBGs Gender Strategy. The 20242030 Gender Strategy expresses the bold ambition to accelerate gender equality to end poverty on a livable planet. The new strategy prioritizes three strategic objectives: end gender-based violence and elevate human capital, expand and enable economic opportunities, and engage women as leaders. IFCs Gender and Economic Inclusion Department (GEID) works toward a private and public sector that provides women, men, and underserved communities equal economic opportunities as leaders, employees, entrepreneurs, consumers, and community members. IFC convenes the private sector and other key stakeholders in emerging markets to facilitate learning and support the implementation of private sector policies and practices to tackle barriers to gender equality and economic inclusion. Childcare is a key focus of GEIDs work in several markets, including Indonesia, recognizing that access to high-quality, affordable childcare can enable womens access to more and better jobs. At the same time, affordable, quality childcare options are often scarce, leading many women to exit the formal workforce. World Banks 2024 study indicates that nearly 40 percent of Indonesian women in wage employment left their roles after marrying and having children. The difficulty of balancing family obligations with paid work means that many women are, therefore, reluctant to return to wage employment after having children. Current Research IFC will share non-public research done by the World Bank Group on Indonesian childcare providers with the firm during onboarding as a foundation for this market assessment. Research Objectives IFC seeks a firm to develop a market assessment report for private sector Early Childhood Care and Education (ECCE) services (for children under 7) in Indonesia. The research has the following objectives: To develop an in-depth analysis of the current demand and supply for ECCE services in the Indonesian market, focusing on opportunities, challenges, and the competitive landscape for private providers. To identify the financing gap and specific financing needs for private sector ECCE service providers, including micro, small, and medium enterprises (MSMEs) and women-owned MSMEs (WMSMEs), as well as challenges and opportunities for market growth. Establish a business case for financial institutions to invest in the ECCE sector and their role in bridging the financing gap. To identify potential entry points for IFC interventions and investment in this sector (both directly and indirectly through financial sector institutions). Research Questions 1. Market Analysis for Early Childhood Care and Education (ECCE) Services Evaluate the current market size (demand) for ECCE services in Indonesia using the most recent data available. Project the growth trajectory of the ECCE market in Indonesia for the next 3 to 5 years, considering scenarios with and without additional access to finance. Categorize the ECCE market based on various factors such as geography (urban & semi-urban vs. rural, Java vs. non-Java), age groups, size of ECCE service providers, and other pertinent typologies to identify key market segments and tailor strategies accordingly. Estimate the total financial investment required to expand the ECCE overall market to satisfy both current and anticipated demand for childcare services. 2. Private Sector ECCE Service Providers Identify 20-25 affordable, high-quality, or scalable private sector ECCE providers across 5-7 cities in Indonesia (primarily Java and Sumatra), focusing on urban and semi-urban regions. Analyze their characteristics (business models, size, number of employees, assets, financing model, etc.) to compare and contrast solutions, needs, challenges, and investments needed to scale up their services. Assess the appetite and constraints of ECCE providers in obtaining financing. Identify existing financing solutions for the ECCE market and propose additional solutions that could support ECCE providers. Identify non-financial barriers faced by childcare providers across various typologies. 3. Mobilizing Private Sector Investment Identify key stakeholders, including investors, private ECCE providers, financial institutions, and development partners, who are interested in scaling up ECCE provision, particularly in urban and semi-urban areas. Explore existing business models and activities (childcare setup, expansion, or quality improvements) that financial institutions and/or investors are interested in funding and have potential for scalability. Assess whether the ECCE service sector is substantial enough to justify a tailored approach for financial institutions to develop specific products and services or to adapt existing loan products for this sector. Explore incentives for financial institutions to develop, test, and scale financial solutions for ECCE providers, such as opportunities to de-risk loans. Identify potential entry points for IFC, including options for direct investment, indirect financing or de-risking through financial institutions, capacity building, and/or convening other stakeholders. Proposed Methodology The Firm will propose and agree with IFC on the methodology for implementing this assignment. As outlined below, this project will have three phases. Phase 1: Preparation and Research Framework The deliverable for this phase will be a research framework in PPT format populated with available data/information. The firm will refine the research questions as necessary, outline hypotheses, and identify evidence gaps to be addressed in the next phase of work. The following is expected to be included in the research framework: Final research questions and deliverables: The firm will finalize research questions and deliverables with agreement from IFC. Data landscape assessment: The firm will conduct a comprehensive review of the data landscape and identify relevant datasets, including WBG and IFCs existing research. The firm will identify gaps in data sources and propose what is needed to collect new data. The firm will define data parameters in the research framework. Data sources should include the demand and supply of childcare as well as financing to ECCE MSMEs, including WMSMEs. Variables and hypothesis formulation for quantitative analysis: The firm will identify variables to be assessed for the research questions. This will be an iterative process as research questions may be refined based on desk research. As appropriate, the firm will formulate hypotheses for the finalized research questions. The firm will propose a way to estimate the following: - Current market size (demand) for ECCE services in Indonesia - Growth trajectory of the ECCE market in Indonesia for the next 3 to 5 years, considering scenarios with and without additional access to finance. - Total financial investment required to expand the ECCE overall market to satisfy both current and anticipated demand for childcare services. Data collection approach: The approach should include i) a measurement plan on how data will be collected (surveys, field visits, focus group discussions, interviews, databases, or other methodologies), ii) sources of data, iii) a sampling strategy including method and size for statistically-sound analysis, iv) data validation techniques, and v) contingency plans. Ideally, the data collection should include field visits to up to seven selected cities in Indonesia (primarily Java and Sumatra) upon agreement with the project team. The firm is also expected to develop a template to guide information gathering and inform the development of ECCE provider profiles to illustrate the nature, range, and potential of ECCE MSMEs, their financial and non-financial needs, and the barriers they face in accessing finance. The firm will organize a meeting with IFC to agree on the research framework, data sources, template for ECCE provider profiles, interview list, and questions. Based on IFCs input, the firm will finalize the research framework. Phase 2: Data Collection, Analysis, and Recommendations Data is expected to be collected as follows: Quantitative Data Analysis in alignment with Research Question #1 The firm will arrange access to required data sources and, as necessary, source and/or collect data needed for the quantitative analysis as agreed upon in the research framework. Data collection tools will be developed and shared with IFC for review and clearance. All data collection tools will be tested before launch. The firm will collect and analyze data to answer research questions. Profiling of ECCE Service Providers in alignment with Research Question #2 The firm is expected to identify 20-25 ECCE service providers across 5-7 cities in Indonesia (primarily Java and Sumatra) and analyze their characteristics to compare and contrast their needs, challenges, and investments needed to scale up their services. Their profiles should reflect the market, including women-led and male-led service providers, where applicable. The pr Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/5011/view.html
|
