Indonesia launched the large-scale community-based block grant programme, the PNPM Generasi, in 2007 with the intention to improve the health and education of children. This study estimates the impacts of the PNPM Generasi on school resources, classroom environments, and school management. While the PNPM Generasi increased community and parental participation in school management, it did little to improve school resources and classroom learning and teaching environments. The existence of heterogeneous impacts across school types and provinces is confirmed. Compared with the notable improvements in health indicators reported in previous studies, the impacts of the PNPM Generasi on school resources and classroom environments are limited.