Ministry of Disadvantaged Region
Republic of Indonesia
Dr. Suprayoga Hadi
Deputy Minister for Special Region
Ministry of Disadvantaged Region, Republic of Indonesia
Regional Meeting on Public Sector Management in Support of the MDGs
Co-organized by Asia Pacific CoP-MfDR, ADB, UN-ESCAP and UNDP
Bangkok, 13-15 June 2012
A. Poverty in Indonesia
B. Government’s poverty reduction strategy and
policy
C. PNPM Mandiri – a strategy for poverty reduction
and job creation
D. Acceleration of the MDGs Achievement
E. Some lessons learned and evaluation results
2
10.0
A significant
number of
vulnerable
5.0
Poorest
Poor
Near Poor
Household
Family
N
Access inequality in health, nutrition,
education, water & sanitation, etc.,
especially for the poor households in
remote and isolated areas
Nonmonetary
Poverty
Poverty rate across regions, 2009
Interregiona
l disparity
Le ge nd :
0-5
5 - 10
10 - 15
15 - 20
20 - 50
1000
0
1000
2000 Kilometers
3
54.2
47.9
38.4
40.1
37.4
34
39.3
36.1
35.1
37.2
34.9
32.5
31.02
28.6
22.5
23.4
21.6
17.3
17.4
15.1
13.7
18.2
17.4
16.7
15.9
17.8
16.6
15.4
11.3
14.1513.33
1976 1980 1984 1987 1990 1993 1996 1996 1999 2002 2003 2004 2005 2006 2007 2008 2009 2010
Head
count (million)
penduduk
miskin [juta]
National
WB
Poverty
rate (%) miskin
% penduduk
Poverty Line/Day
PL/Month/
Capita
% Poor
(2010)
Rp.7.057,5≈ US$1.79 PPP
Rp. 211.726
13,3
US$1 PPP≈ Rp.3.934
Rp. 118.020
7,4
US$2 PPP ≈ Rp.7.868
Rp. 236.040
49,0
4
MACRO ECONOMIC POLICY
Near
Poor
Poor
Cluster-1
1.
2.
3.
4.
5.
Scholarships
Health Insurance
Rice Subsidy
CCT
UCT (when needed
in crisis)
The
Poorest
Near
Poor
Poor*
The
Poorest*
6. Different kind of
social assitances.
Cluster-2
COMMUNITY
EMPOWERMENT
PROGRAMS
(PNPM)
Cluster-4
1.
2.
3.
4.
5.
6.
Housing
transportation
Clean water
Electricity
Fishermen livelihood *)
Marginal group in urban areas*)
Cluster-3
SMEs
Credits
Focus targets to
communities of
fishermen, marginal group in urban
areas, and in less
developed regions
To Increase
Social Welfare
and expand job
creation
Accelerate
Poverty
Reduction
5
MASTER PLAN
ECONOMY
Social
Protection &
Assistance
Program
(Cluster I)
DUAL
TRACK
Community
Empowerment
Programs
(Cluster II)
SMEs
Empowerment
Programs
(Cluster III)
Pro Poor
Programs for
acceleration
(Cluster IV)
Expand the Economic
Growth (PRO-GROWTH)
Expand the
job Opportunity
(PRO-JOB)
Increase the
People’s Welfare
(GROWTH with
EQUITY)
Accelerate poverty
reduction (PRO-POOR)
Green Economy
(PROENVIRONMENT)
FOUR TRACK STRATEGY
6
1. Expansion and improvement of CCT
a. Expansion to cover 1,516 thousand of poorest HH and include Eastern
Indonesia
b. Improvement of targeting method in 2011 Database, socialization, verification,
and payment system
2. Strengthening the effectiveness of PNPM Mandiri
a. Increase the impact and effectiveness of the program for job creation;
b. Strengthen the quality of integration among CDD programs and local pro-poor
planning, budgeting & policy;
3. Expansion of pro-poor programs
a. Affordable housing for the poor;
b. Cheap transportation, including for rural transportation and efficient car;
c. Clean water for the poor;
d. Cheap and efficient electricity for the poor;
e. Improvement fishermen livelihood and quality of 400 PPI (fishing ports);
f. Improvement of vulnerable in the urban, including housing and basic services
as well as economic productive activities.
4.
Land ownership of the poor
5.
Strengthening access and quality of family planning for the poor, especially in remote
areas
7
RESPONSIVE GOVERNMENT & EMPOWERED
COMMUNITIES
•Strengthening bottom-up dev’t approach;
•Improving local government (sub-districts, village heads
& legislative) responsiveness
•Improving social service delivery to the poor.
•Pro-poor planning and budgeting
MARKET LINKAGES
•Infrastructure
•Microfinance
•Smallholder dev’ t
•Renewable energy &
NRM
Block grant
tansfer and
technical
assintance to the
poor communities
SOCIAL PROTECTION
•Women’s
participation
•Justice for the poor
•Helping marginal
groups
•Transparency
8
1. PNPM is a program use CDD approach that attempt to reduce poverty and create
job opportunities
2. It consists 5 core programs: PNPM Rural; PNPM Urban; PNPM for Disadvantage
Area; Rural Infrastructure Support for PNPM; PNPM - Infrastructure for socioeconomic development
3. Currently , it is supported by several sector CDD program: PNPM for rural
agribusiness, PNPM tourism, PNPM fishery and marine.
4. Since 2009, PNPM Mandiri has covered all sub-districts (6,400 sub-districts)
1. To solve difficulties in reaching the poor and fulfill people needs particularly in
remote & isolated areas due to imperfect market.
 Current decentralization doesn’t guarantee local governments perform
participatory and pro-poor approaches.
2. To avoid inefficiency & confusion of overlapping activities, procedures, &
institutions formed by different kind of projects. PNPM attempts to
harmonize:
 Location by targeting poor sub-districts
 Principles & performance indicators.
 Simplifying procedures (planning, disbursement, facilitation training, and unit
9
costs).
RESPONSIVE GOVERNMENT & EMPOWERED
COMMUNITIES
•Strengthening bottom-up dev’t approach;
•Improving local government (sub-districts, village heads
& legislative) responsiveness
•Improving social service delivery to the poor.
MARKET LINKAGES
•Infrastructure
•Microfinance
•Smallholder dev’ t
•Renewable energy &
NRM
Block grant
tansfer and
technical
assistance to the
poor communities
SOCIAL PROTECTION
•Women’s
participation
•Justice for the poor
•Helping marginal
groups
•Transparency
10
2025
2020
2015
UPSHIFTING
2012
UPSTREAMING
UPGRADE
• Empowerment
Process
• Activity: open menu
• Infrastructure
• Quantity  physical
assets
•
•
•
•
Supporting System
Institutionalization
Pro-poor LGs
Quality  social
assets
• Enggaging
(networking,
partnership)
• Decentralization
• Entrepreneurship
• Regional/global
economic linkage
asset building
11
INITIAL/LEARNING
PHASE
(Year 1- 2)
• Participatory development
learning process
• Block grant as stimulant
• Community intiative
learning process, facilitate
by facilitators
SELF RELIANCE PHASE
(Year 3 - 4)
• Partnership with other
stakeholders
• Community abble to access
other resources
• Integration between
participatory planning and
reguler planning process
CDD ARE
IMPLEMENTED WELL
SUSTAINABILITY
PHASE
(YEAR 5- 6)
• Community are able to
patnership with wider
stakeholders
• Pro poor planning &
budgeting of LG
• Facilitators are based on
community requirement
EXIT STRATEGY
• Replication CDD
principles, mechanisms
& procedures by Local
Government & other
stakeholders (NGOs,
CSR, etc)
12
12
 Basically the block grant can be used for open menu.
 The implementing Agency only issues the negative list (ie. buidling praying
place, creating bomb, etc)
 The activities as vary as follows:
 Train the communities in identification, analysis and decision making
process to tackle their poverty problems
 Create/expand small scale infrastructures and community economic
productivities.
 Increase community capability and self-help to achieve better standard of
living
13
Central Government Budget
Local government contributions (based on fiscal capacity, from
5%-20% out of block grant)
Private/CSR contributions
Financing Mechanism
Multi Donor Trust Fund (PNPM Support Facility/PSF)
grants from WB, AUSAID, DFID, Netherlands, Danida, EU,
USAID.
Multiyears financing for community block grants and
technical assistance  WB (PNPM Urban & Rural), IDB
(PNPM Urban), ADB(RIS-PNPM), JBIC (RISE), WB (SPADA).
14
Agriculture
3.65%
Energy Enviromental
0.97%
0.22%
Others
0.03%
Economy
14.58%
Social
3.50%
Transportation
53.75%
Health
13.40%
Education
9.90%
15
1. Strategy, Institution, and Accountability
Decide key performance indicator to include woman participation and
gender mainstreaming in any activity from planning until the
implementation phases.
2. Social Empowerment
Separate proposal proses for women group can guarantee bigger
response to women needs, which oftn time relates to solve the root of
poverty
The Operational Manual has been set up to include and give bigger role
to women
Monev could help the awareness to women participation
3. Sustainability and Impact
Women involvement particularly in operation and maintenance has
been impacted to the sustainability of the project results
4. Economic Empowerment
Support women role in household’s economic increases their power in
deciison making process within a family;
Women participation in different kind of level increases their capacity
and self esteem.
16
Self-help mapping:
•Needs & asset identification
•Problem solving
Poverty reflection:
•Poverty diagnostics
•Problem identification
• Solution identification
Community Organization:
•Form & set up community organization
Planning:
•Programs & activity
identification and
Prioritization
Community meetings:
• Binding interest
•Democratization
•Self reliance
Implementation:
•Form implementation units
•Set up agenda / action plan
Dissemination:
•Social mapping
•Socialization
Beneficiaries:
•Set up beneficiaries
17
8 Goals
Poverty & Hunger
18 targets
In 2015
48 Indicators
on the basis
of 1990
 Financial Crisis has impeded some MDGs targets
achevement, e.g. National poverty, nutrition, nett
Maternal Health
enrollment rate, etc.
 Period of Mid-term Development plan 2010-2014 is:
EDUCATION
GENDER
CHLD HEALTH
Comm. Diseases
 Last shot to accelerate MDGs achevement in sistematic way
 Basis to mainstream MDGs achievement whithin sectors,
programs, activities, along with the target, funding, and other
resources
 Presidential Decree No. 3/2010 issued to instruct
ministers, governors and other leaders to accelerate
ENVIRONMENT
MDGs achievement. It is a basis for the establishment
of Road Map MDGs, Regional Action Plan, improve
MDGs related database, and strengthen local
government capacity in pro-poor planning and
PARTNERSHIP
budgeting
18
Strengths:
1. Community groups receive the funds
directly in their bank account from MoF
treasury
2. The community has strong ownership
which creates incentives for community
control over the funds
3. An external monev unit is established
through the PMU
4. An internal financial management team
provides hands-on training & oversight
to community groups
Weaknesses:
1. The capacity of untrained community
groups to manage & implement the grant
is weak
2. The capacity of local governments to
supervise & monitor project
implementation is insufficient
3. The capacity of facilitators is uneven
4. data management and performance
indicators are in different quality
5. Complaint tracking & reporting can’t
provide the resolution progress
Enhancing Effectiveness of PNPM Mandiri:
1. Quality improvement of PNPM M implementation (management, MIS,
fasilitators, governance)
2. Improve capacity at the local level (village and sub district).
3. Integration of participatory planning into regular planning process at the
local level
4. Focus and increase effectiveness of program at poorest sub district.
19
 Poverty targeting to the sub-district level is successful (Alatas, 2005)
• Covered 34.000 poor villages & 60-70% poor in the community
 Increased basic infrastructure with quality ranges good to very good (MIS; Ekart, et. Al, 2004; Torrens, 2005)
Built & improved 27.590 km roads, 6.040 bridges, 6.565 unit of water infrastructure & 2.660 unit sanitation
• Built & renovated 1.760 schools & 1.450 health post & its network; and provided school supplies & 61.100 scholarships.
•

Rural infrastructure projects have high economic returns (EIRR 39-68%) & costs significantly lower 56 % than
equivalent works built through government contracts (Dent, 2001; Torrens, 2005; Alatas, 2005)

Over 62 work-days of short term employment from infrastructure activities & more than 1.3 million villages
established/ expanded their micro & small enterprises (MIS).

Better community capacity in project planning & implementation as well as good governance (McLaughlin et.
Al 2007)

Corruption rates are low, <1% of total program costs (Price Waterhouse; Moore’s Rowland, BPKP, MIS)

Community participation is high.
Women participation in meetings & activities ranges from 31-46% (Barron, et.al, 2006)
• Approx. 60% of those who attend planning meetings & 70% of the labor force are the poorest of community (MIS)
•

Households in poor sub-districts (kecamatan) were 9.2%-11.7% more likely to move out of poverty than
households in control areas (Voss, 2007).

Unemployment rates in control areas increased by 1.5% more than in PNPM areas (Voss, 2007)
20
Good governance practices support reform at the village level
• Village head has a strong influence in people participation, project legitimacy, & transparency
(when people’s present is low, the village head can be very dominant)
• Collective action is bigger at the neighborhood rather than at the village  village head,
facilitators, & implementation team work as instrument of cooperation at the village level.
People participation expands the community capacity
• Participatory decision making process & trainings increase community self-esteem &
willingness to cooperate.
• Ignorance of complaint handling, especially when the project runs well  community
supervision is needed to control the quality of project and good governance
• Women participation is greater when decision making is at the lower level ie. neighborhood or
groups).
The activities identified are consistent with the community needs or village problems.
• Open the opportunity of villagers to help the needy/poorest, although the vote mechanism
isn’t always benefiting groups who live far from the village center (ie. irrigation, health post,
etc)
The willingness toward CDD’s principles need support of external change  supportive
legislative body & local government.
21
THANK YOU
for further information, please email to:
suprayoga@kemenegpdt.go.id and suprayoga@bappenas.go.id
or yogahadi@gmail.com
22