This paper focuses on two important dimensions of Indonesia's development record: education and health. The paper investigates the extent to which the poor benefit from public and private provisioning of these services. Multiple rounds of annual household surveys document a reversal in the rate of decline in poverty and a slowdown in improvements in the social sector as a result of the economic crisis in the late 1990s. Rural and urban analyses of public spending in education and health reveal patterns consistent with experience in other countries: spending on primary education and primary health care tends to be pro-poor, while spending on higher education and hospitals is less obviously beneficial to the poor. These conclusions are tempered once one allows for economies of scale in consumption, which weaken the link between poverty status and household size. An examination of the incidence of changes in government spending finds that the marginal incidence of spending in both junior and senior secondary schooling is more progressive than what static analysis would suggest, consistent with a process of "early capture" by the non-poor of education spending. In the case of health, marginal and average incidence analysis point to the same conclusion: the greatest benefit to the poor would come from an increase in primary health care spending. A table presents data for rural and urban areas of each province on poverty, adult illiteracy, elementary school dropouts, infant mortality, and child malnutrition. Appendices present additional data tables and notes. (Contains 45 references.) (Author/TD)