This publication describes the major components of the Directorate of Community Education (PENMAS) Nonformal Education Project in Indonesia. Chapters 1-3 give an overview of PENMAS, including its history and development, and of the scope and goals of the project. Chapters 4-6 describe various types and levels of staff training conducted under the project--an activity that was a critical component in the building of PENMAS' institutional capacity in informal education. In chapter 7 are presented and analyzed the complex materials development systems and types of learning materials produced by PENMAS. Chapter 8 describes the framework for evaluation and discusses several principles of formative evaluation derived from project experience. Chapter 9 reviews highlights from the summative evaluation project report, including a description of the evaluation design and methodology and policies recommended as a result of data analysis. Chapter 10 elaborates on the relationship developed with the Center for International Education at the University of Massachusetts and the collaborative techniques used in managing the technical assistance component. Chapter XI concludes with a look to future possibilities of PENMAS based on project experience. (YLB)