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Institutional Setting of Poverty Reduction/Social Protection Programs in Indonesia. Institutional Issues on CCT Program. Vita Febriany The SMERU Research Institute Programs Related to Poverty Reduction. Ministerial Task Force (TKPK). Launched in 2005

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Institutional Setting of Poverty Reduction/Social Protection Programs in Indonesia

  • Institutional Issues on CCT Program

Vita Febriany

The SMERU Research Institute

Programs Related to Poverty Reduction

Ministerial Task Force (TKPK)

  • Launched in 2005

  • A cross-sectors forum

  • Expected to accommodate all efforts to reduce poverty

  • Consisting of:

    • 19 ministers

    • 3 head of bureau and

    • other non-governmental members

  • Chair: Coordinating Minister of People’s Welfare

  • TKPK offices are also established at provincial and district level

Under TPKP framework, since 2008, all programs dealing with poverty reduction have been coordinated into 3 clusters of program

Cluster I

Cluster II

Cluster III

Micro-enterprises Empowerment

Aim: to increase savings & business sustainability of SMEs

Social Assistance

Aim: to reduce economic cost burden of the poor

Community Empowerment

Aim: to increase the poor’s income & affordability

Main Instruments:

Rice for the poor, Health Card, CCT, scholarship for the poor.

Other Instruments:

Social assistance for disabled, elderly, children, etc.

Targets in 2009:

18.5 million the near poor, poor, and very poor households.

Main Instruments:

Credit for the People (KUR)

Targets in 2009:

US$ 2 billion for 4 million microcredit recipients

Main Instruments:

PNPM Mandiri (National Community Empowerment Program) PPK, P2KP, PPIP, PISEW, etc.

Targets in 2009:

6,408 villages

“Provide fishing rod and boat”

“Giving a fish”

“Train how to fish”

The Drawback of TKPK (Ministerial Task Force)

  • Poor coordination across ministries

  • Most ministers are from different political parties and interest groups

  • Conveying diverse poverty alleviation and agenda

  • Bureaucratic fragmentation

  • Financial limitations

  • Weak deciding power

Special Task force

  • In Mid 2010 TKPK changed its name into the national team for poverty reduction acceleration (TNP2K).

  • Three main tasks:

    • To formulate the poverty reduction policy and program,

    • To make the poverty reduction activities more synergic between ministries and institutions,

    • To perform the monitoring and evaluation function.

  • Led directly by the Vice President

  • The office is next to the Vice President office

  • Vice President checks the progress in every two weeks

Head :Vice President

Deputy I : Coordinating Minister of People’s Welfare

Deputy II : Coordinating Minister of Economic Affairs


Executive Secretary:

Welfare Affairs Deputy of

Vice President Secretary

Cluster 1:

Household based Integrated Social Assistance

(Vice President Office)

Cluster 2:

Community Empowerment based Social Assistance / PNPM Mandiri

(Coordinating Ministry of People’s Welfare)

Cluster 3:

Micro-enterprises Empowerment based Social Assistance

(Coordinating Ministry of Economic Affairs)

Institutional Issues on CCT program

CCT program in Indonesia

  • Known as Family of Hope Program (PKH).

  • Implemented since 2007.

  • Transferring funds directly to women.

  • Employing 12 health and education indicators.

  • In 2010 covers around 800,000 poor households.

Institutional Issues of PKH

  • At central government: between ministries

  • Between central and local governments

  • At village level

Between Ministries

  • PKH is a demand driven program.

  • Managed by The Ministry of Social Affairs (MoSA)

  • Inter-sectors coordination is provided by a central coordinating team

  • MoSA is considered as lack of credibility compared to other ministries

  • Difficult to ensure other ministries' support and commitment

Between Central and Local Governments

  • PKH is a central government program.

  • Indonesia is a very decentralized country with autonomy lies at the district government.

  • PKH has been implemented only at selected districts.

  • There is an MOU between central and district governments.

  • Low level of local governments’ commitment (‘business as usual’).

  • District health and education offices follow strategies from their line ministries and local government policy.

At village level

  • Service providers at the village level follow policies at the district level.

  • Lack of information at services providers

  • Extra burden no additional compensation

  • Resulted in the virtual absence of compliance monitoring.

PKH Institutional Interrelationship

Ministry of Health

Ministry of

Social Affairs


of Education





Social Affairs







Health clinics

Field Facilitators



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