Indonesian Experiences with the CBMS and the Way Forward *

Sudarno SumartoThe SMERU Research InstituteJakarta – Indonesiawww.smeru.or.id

* Presented at the 6th Poverty and Economic Policy (PEP) Network General Meeting, Peru, Lima, June 11-16, 2007.

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Despite some progress, poverty is a still major issue in Indonesia (1)

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Most of those escaping poverty are still vulnerable to poverty (2)

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The poor are widely disadvantaged in terms of non-income poverty dimensions (3)

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Household without access to safewater

Household without access tosanitation

Household with children aged 12-15 not enrolled in junior high

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Household with birth attended bytraditional paramedics

Poor Non-poor

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Decentralization policies have created fiscal spaces for the districts to address poverty

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In addition, the national budget for poverty reduction has increased significantly in recent years

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National Budget for Poverty Programs (Rp.Trillion)

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However……. (1)

Many targeted poverty programs are poorly coordinated and targeting is insufficient.

Data is available on how many poor people are in specific locations, but we don’t know who they are.

Efforts to target beneficiaries and monitor social impacts of development projects, including MDGs, rely on the national socioeconomic survey (Susenas), BKKBN (National Family Planning Coordinating Board), economic survey (PSE05) or village census (Podes) data.

However……. (2)

That data is necessary but insufficient for effective targeting as it is neither locally specific nor participatory in the collection process.

Given the decentralized system in Indonesia, identifying beneficiaries and monitoring MDGs at the local level should involve local governments. Thus, a localized monitoring system and locally tailored indicators are needed.

CBMS can provide for these needs.

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Design of CBMS Indonesia (Pilot Phase)

Purpose:To identify locally specific poverty conditions.To rank the welfare level of every family in a location (NOT to calculate the poverty rate).

Pilot Areas: Four villages in two districts.

Design of CBMS Indonesia (Pilot Phase)

Method:Data was collected by way of villages census.63 welfare indicators were used. Questionnaire used mainly yes/no response format.Used locals to collect data ( better data quality), collaborated with BKKBN.Village-specific poverty criteria was determined after data collection using Principal Components Analysis (PCA) Welfare ranking.

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Implementation & Result of Pilot CBMS in Indonesia (1)

Questionnaire was simple but sufficiently detailed for our purposes, and was used with rigorous training for enumerators.

It is possible to objectively generate village-specific poverty criteria using simple data collected by locals.

Since the criteria were generated by the data itself, they were not known prior to data collection (difficult to tamper with).

Implementation & Result of Pilot CBMS in Indonesia (2)

Using PCA method we can generate poverty indicators in each village as well as welfare rank of every family in each village.

Other than PCA, the data permits calculation of other welfare indicators.

The poverty criteria can be used to identify “relatively” poor families that require government assistance.

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Other Uses of CBMS data: Simple Benefit Incidence Analysis of the UCT Program

Baseline Data CBMS with UCT Recipients 2005, Kedondong Village, Demak District

Quintile KKB Recipients Per Quintile

% KKB Recipients to Total Household Per Quintile

KKB Distribution Received

Per Quintile

Q1 205 74,55 42,01

Q2 125 44,96 25,61

Q3 78 28,26 15,98

Q4 59 21,30 12,09

Q5 21 7,58 4,30

488 35,29 100,00 Note: Total population: 1,383 households. Quintile Size: 275-278 households.

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Other Uses of CBMS data: : Localized MDG Monitoring (1)

CBMS data also permits calculation of other welfare indicators, including monitoring of MDGsat the local level.

The current CBMS data can provide village level (or hamlet level) indicators for MDGs 1 – 5.

Data for other goals could also be appended in future data collection activities.

Millennium Development Goals

1. Reduce extreme poverty and hunger

2. Achieve universal primary education

3. Promote gender equality & empower women

4. Reduce child mortality

5. Improve maternal health

6. Combat HIV/AIDS, malaria, and other diseases

7. Ensure environmental sustainability

8. Develop a global partnership for development

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Other Uses of CBMS data: : Localized MDG Monitoring (2)

Example: Selected education and health indicators, at hamlet level, from a CBMS village.

Education Health Enrollment Rate (%) Maternal Health (%) Child Immunization (%)

Elementary Junior

Secondary Senior

Secondary Antenatal

Care Postnatal

Care BCG Polio MMR Complete Immunization

Hamlet 1 83.3 100.0 66.7 100.0 76.2 100.0 100.0 100.0 100.0 Hamlet 2 92.0 100.0 37.5 89.5 0.0 94.7 94.7 94.7 94.7 Hamlet 3 78.4 85.7 44.4 100.0 95.0 100.0 100.0 100.0 100.0 Hamlet 4 68.0 66.7 14.3 100.0 100.0 100.0 46.2 38.5 30.8 Hamlet 5 100.0 69.2 30.0 66.7 66.7 55.6 55.6 48.1 48.1 Hamlet 6 100.0 78.6 25.0 92.0 92.0 92.0 88.0 80.0 72.0 Hamlet 7 96.2 64.3 20.0 85.7 71.4 71.4 42.9 57.1 14.3 Hamlet 8 100.0 76.9 22.2 52.9 35.3 35.3 47.1 17.6 5.9 Hamlet 9 92.5 44.4 13.3 85.7 89.3 50.0 46.4 14.3 14.3

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Lessons Learnt from the Indonesian CBMS Pilot (1)

CBMS proves that targeting and monitoring can be done using simple data collected by locals YET they are methodologically sound, locally specific, and cost effective.

The poverty criteria can be used to identify “relatively” poor families that require government assistance. Combined with geographical targeting, leakage and undercoverage can be minimized.

The CBMS data can also be used for benefit incidence analysis of the poverty programs.

Lessons Learnt from the Indonesian CBMS Pilot (2)

Since the MDGs at the national level will not necessarily reflect the achievements of the provincial and local areas, localized MDG monitoring is required. CBMS can contribute to this need.

An important next step is to promote this methodology to districts throughout the country.

The Way Forward (1)

SMERU has been working on promoting CBMS to local and central government, NGOs, and others –through workshops, consultation, and publications.

Two regional workshops were held by inviting government officials, press, civil society, and local leaders.

In both workshops, the Indonesia CBMS CD was distributed freely to the participants.

SMERU also published one edition of its newsletter focused on CBMS Indonesia; other publications include a research report and a field report.

The Way Forward (2)

There have been a number of organizations interested in using CBMS (like PT. Newmont) but so far the realization has been slow.

A similar initiative was undertaken in SulawesiProvince under the SoFEi-DSF umbrella.

Recently, in collaboration with PATTIRO (a Jakarta-based NGO) SMERU prepared a proposal to promote the implementation of CBMS in Pekalongan City, Central Java.

The Way Forward (3)

The City of Pekalongan is located strategically in the hearth of Java with a population of 265,000 people with more than 66,000 households.

The Mayor of Pekalongan has welcomed the idea of using CBMS, and has mentioned this during his national television appearance.

SMERU, PATTIRO, and the City of Pekalongan are at the final stages of negotiation to implement the CBMS.

The Way Forward (4)

Assuming that IDRC will provide USD50,000 of funding for the second phase of CBMS Indonesia, the City of Pekalongan has committed to co-funding approximately USD50,000 to be invested in the CBMS initiative.

SMERU has the staff and skills to help the City of Pekalongan implement this initiative.

We are hoping other cities and districts will implement the idea in the near future.

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The SMERU Research Institute www.smeru.or.id

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