ACCELERATING SUSTAINABLE POVERTY REDUCTION THROUGH

COMMUNITY EMPOWERMENT

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Deputy Minister for Poverty, Labor and SMEsMinistry of National Development Planning/National Development

Planning Agency (Bappenas)

Jakarta, May 25, 2010

I. Poverty reduction in the national development framework

II. Poverty Situation in Indonesia

III. National Program for Community Empowerment (PNPM Mandiri)

IV. PNPM Monitoring

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Outline

Poverty Reduction in Indonesia’s National Development

LTNDP

MDGs & Other InternationalConventions

ImplementationOf PovertyReductionPrograms

MTNDP

StrategicPlan

Sectors’ program

National Development Agenda 2004-20091. Realizing a safe & Peaceful Indonesia2. Realizing a Just & Democratic Indonesia3. Enhancing the Prosperity of the People:

a.Reducing the number of poor and open unemployment

b.Improving the quality of human resourcesc. Improving the quality of environment and

natural resources managementd.Increasing the infrastructure

Regional’s Program

National Budget

Regional Budget

Annual Work PlanPoverty Reduction as the priority

of national development

NationalPoverty

Reduction Strategy

MEDIUM TERM DEVELOPMENT GOAL

2005 2006 2007 2008 2009Economic growth 5.7% 5.5 % 6.3% 6.1% 4.5%Unemployment 11.24% 10.28% 9.11% 8.39% 7.87%Poverty rate 15.97% 17.75 % 15.42% 15.42% 14.15%

PROJECTION 2010 PROJECTION 2014 Economic growth 5.5% -5.6% 7.0%-7.7%Unemployment 7.6% 5%-6%Poverty rate 12.0%-13.5% 8%-10%

Source: Medium Term Development Goal (RPJM) 2004-2009 and 2010-2014 4

SOCIAL AND ECONOMICWELFARE

PEACE AND SAFETY

JUSTICE AND DEMOCRACY

Economic Development and People’s

Welfare

Governance Reform Democracy

Law Supremacy

and combating Corruption

Inclusive Growth and

Justice

3 AGENDA IN 2004-2009

5 DEVELOPMENT AGENDA IN THE RPJM 2009-2014

TRIPLE-TRACK DEVELOPMENT STRATEGY

Pro-Growth : Strategy to increase and accelerate economic growth through promoting investment, exports, and businesses including the improvement of investment climate.

Pro-Job : Strategy to create employment opportunities including the the establishment of a flexible labor market and creating a conducive industrial relations.

Pro-Poor : Strategy to reduce poverty and to revitalize agriculture sector, forestry, maritime, rural economy. In the medium and long-term period the poverty alleviation strategy is also aimed at increasing the capacity and quality of the community level contributed to local development, and to provide access for the poor in basic services including education, health, sanitation/clean water, as well as rural infrastructure.

Economic Growthand Stability

EmploymentCreation

Poverty Reduction

People’sWelfare

Basic Needs Improvement

Programs

Social Protection

System

HarmonizationCommunity

EmpowermentPrograms

PNPM:•Small-scale infrastructure

•Economic productivity•Environmentimprovement

•Human resources improvement

•Fiscal-Monetary Policies

•Infrastructure Acceleration

Package•Investment

Climate Package•Energy policy•SMEs Package

•Etc.

Price Stabilization(rice, education,

health, basicinfrastructure)

•CCT & •other social programs

Labor-related Programs

Framework fro Welfare Improvement

3 CLUSTERS OF THE POVERTY REDUCTION PROGRAMS

POVERTY REDUCTION PROGRAMS

Cluster 1

Program on Social Welfare and Social

Security

Cluster 2

Community Empowerment

Programs

Cluster 3

SMEs Programs

Target:very poor, poor

and near poor HH

Target: Poor Communities

Target:SMEs

SE L F R E L I A N C E

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II. Poverty Situation in Indonesia

Tingkat Kemiskinan di Indonesia: 1976-2009

Sources: Central Statistics Agency

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Notes: Methodology improvement in 1996.

Poverty Poverty Trend Trend in in Indonesia: 1976-2009Indonesia: 1976-2009

Inequal distribution of poor people across regions

57.1% poor lives in Java-Bali

21% poor lives in Sumatera 21.9% poor are spreaded in the rest of the country

Sources: Susenas 2009, CSA

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III. National Program for Community Empowerment

(PNPM Mandiri)

A national program to reduce poverty through community empowerment with the objective of increasing community capacity & self-help group to achieve better standard of living & welfare poverty reduction is more sustainable

1. PNPM Mandiri

2. Why is PNPM?Harmonize empowerment activities

implemented by various ministries to reduce inefficiency & overlapped activities, mechanisms,

and community’s institutions.Better targeting the poor

at sub districts and villages.

PNPM Components:a.Community Empowerment Facilitator provision to increase community awareness and capacity to form

a self-help group & advisory body at the village. Output: formation of self-help group and elected advisory body.

b.Community grant• Provide community grant to the formed self-help group, to finance

identified activities, selected in the advisory body’s forum.• The grant is an open menu for: a) basic infrastructure (rural road &

irrigations, school/health post renovations, etc); b) economic activities, etc.

c. Local government and stakeholder capacity building• A set of activities for strengthening local government & stakeholder

capacity to create a positive, conducive, & synergetic environment for the community, in particular for the poor.

d.Program Management: MIS, Monitoring & Evaluation, operational supports

8. Beneficiaries

3. PovertyReflections

2. Community Meetings

1. Socialisation in the communities

6. Planning

5. Community Organizating

7. Implementation

4. Social Mapping

How does the empowerment process work?

MARKET LINKAGES•Microfinance•Smallholder development

•Information technology•Renewable energy

•Non-bank (micro-credit institutions)

SOCIAL PROTECTION•Women’s participation

•Justice for the Poor•Helping Marginal

Groups•Budget transparency

•Community trust funds•Sustainability

RESPONSIVE GOVERNMENT/EMPOWERED COMMUNITIES

•Strengthening bottom-up planning and budgeting;•Improving local government representation and responsiveness (sub-districts, village heads, village

legislative bodies, etc)•Improving social service delivery to the poor.

•Pro-poor planning and budgeting

Block grant tansfer to the poor

communities

1.Harmonize PNPM-core programs by:

•Formulate a General guidelines & manuals•Monitoring-evaluation, MIS, Complain handling•Technical ops. Manuals of each core program•Focus location of PNPM core to poor kecamatan and desa to provide platform for PNPM-Support later on.

2.Increase coordination by establishing PNPM National Oversight Body & PNPM Coordination Team at provincial and district level.

3.Identify and integrate PNPM-support from sectoral programs onto PNPM-Core.

4.Improve facilitators quality (training) & mobilization

• Sinchronize community participatory planning process into the regular/local government development plan.

• Improve integration and synergy between PNPM-Core and Support

• Integrated MIS for better monitoring and evaluation

• Increase Local Government Ownership for a decentralized program.

Harmonization Stages2009 - 20152007-2008 (Transition)

No. Employed staff Persons/years

1. National Level 612. Province Level 2203. District Level 6864. Sub-District Level

- Sub-District Facilitator- UPK Management Staff (from the community)

9,57013,113

5. Village Level: Village Facilitator 11,998Total of employed staff 35,648

Employment at the community level (work-days)** 741,868

Impact of PNPM on employment (2009)

** 2009 is not a full year data yet. In 2007 total employment generated at the community level was: 9,97 mill work-days; In 2008: 16,8 million work-days.

Impact on increases per capita consumption among poor householdsHouseholds in the first quintile of predicted per capita consumption saw approximately 10% greater gains in comparison with control areas between 2002 and 2007.

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Consumption Per Capita

Kec Poverty Score

Predicted Consumption Per Capita

Consumption Per Capita

Kec Poverty Score

Predicted Consumption Per Capita

Full

Sam

ple

Hou

seho

ld-M

atch

ed

Sam

ple

Impact on expands access to health care: Household heads in PNPM areas were 11% more likely to see expanded access to outpatient care.

Impact on Poverty Reduction Households in poor kecamatan are 9-12% more likely to move out of poverty than households in control areas.

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IV. PNPM Mandiri Monitoring system

(SIMPADU)

SIMPADU PNPM integrates data from 5 core programs within PNPM Mandiri. Planning and realization data of PNPM activities Provincial, district, and sub-district level Time period from 2007 to 2010 Display demographic data from Podes 2006 (village

data) and PPLS 2008 (poor HH data by name by address)

What is inside SIMPADU PNPM?

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Features for Public Users

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DASHBOARD

CREATE QUERIES

VIEW DATA

VIEW MAP

National – Province – District

Total of 3 years, or by year

By Program

Available for anyone with internet access

Create specific queries based on province, district, sub-district, type of activities, or time period

To view details of proposed and realized activities, together with the profile of particular sub-district

To create queries spatially

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Features for Internal UsersOnly accessible for the Management & Control Team, in order to conduct for advanced analysis

Maximum, Minimum, Average, Variants, Deviation

Create Reports of Proposed Activities, Progress of Activities, Realization of Activities, and Community Participation

View Data Distribution Spatially

GRAPHICS

STATISTICS

REPORTS

THEMATIC MAPS

Visual Analysis: Baseline Data, Realization of Activities, Demography data, and Disaster Data

FUND ALLOCATION COMPARED TO THE NUMBER OF POOR PEOPLE IN EACH PROVINCE

26*) Fund form National Budget and Regional Budget, year 2010

THE COVERAGE OF PNPM MANDIRI (NUMBER OF SUB-DISTRICT)

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THE USE OF BLOCK GRANT BY THE COMMUNITIES

*) Data based on PNPM Rural, PNPM Urban, and PNPM Underdeveloped and Special Region, 2009

Health, 22.13%Education, 2.01%

Social, 9.38%

Agriculture, 0.54%

Transportation, 52.475%

Economy, 10.65%

Environment, 0.99%

Distribution of Households without proper access to Sanitation

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Variable: Percentage of Households without Access to Sanitation

Ranges Color Legend

- No Data

0 – 12.00

12.01 – 24.00

24.01 – 36.00

36.01 – 48.00

48.01 – 60.00

> 60.00

PNPM Fund Distribution for Sanitation by District Level in East Java, 2009

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Variable: Access/Transportation

Ranges Color Legend

- No Data

0 – 15,000,000

15,000,000 .01– 25,000,000

25,000,000 .01– 35,000,000

35,000,000 .01– 45,000,000

45,000,000 .01– 55,000,000

> 55,000,000

THANK YOU

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