This paper uses regression and matching techniques to evaluate Indonesia's Social Safety Net Scholarships Programme. The scholarships program was developed to try to prevent large numbers of children from dropping out of school as a result of the Asian financial crisis. The expectation was that many families would find it difficult to keep their children in school and drop-out rates would be high as they were during the 1980s recession. Drop-outs, however, have not increased markedly and enrollment rates have remained relatively steady. The paper examines the role played by the scholarship program in producing this result. The scholarships were found to have been effective in reducing dropouts at the lower secondary school level by about three percentage points but had no discernible impact at the primary and upper secondary school levels. Also examined is how well the program adhered to its documented targeting design and how effective this design was in reaching the poor. The targeting criteria appear to have been followed quite closely, and consequently the poor received a greater than proportional share of the scholarships. Nevertheless, this did not prevent some households with high reported per capita expenditures from receiving the scholarship while many poor households missed out. (Includes 39 notes. Contains 2 figures, 5 tables, several appended figures and tables, and 23 references.) (Author/BT)