ACCELERATING SUSTAINABLE POVERTY REDUCTION THROUGH COMMUNITY EMPOWERMENT

1. ACCELERATING SUSTAINABLE POVERTY REDUCTION THROUGHCOMMUNITY EMPOWERMENT Deputy Minister for Poverty, Labor and SMEs Ministry of National Development Planning/National Development Planning Agency (Bappenas) Jakarta, May 25, 2010

2. Outline I. Poverty reductionin the national development framework II. Poverty Situation in Indonesia III. National Program for Community Empowerment (PNPM Mandiri) IV. PNPM Monitoring

3. Poverty Reduction in Indonesia’s National Development • National Development Agenda 2004-2009 • 1.Realizing a safe & Peaceful Indonesia • 2.Realizing a Just & Democratic Indonesia • 3.Enhancing the Prosperity of the People: • Reducing the number of poor and open unemployment • Improving the quality of human resources • Improving the quality of environment and natural resources management • Increasing the infrastructure MDGs & Other International Conventions LTNDP MTNDP Strategic Plan National Poverty Reduction Strategy Annual Work Plan Poverty Reduction as the priority of national development Sectors’ program Regional’s Program Implementation Of Poverty Reduction Programs National Budget Regional Budget

4. MEDIUM TERM DEVELOPMENT GOAL 3 AGENDA IN 2004-2009 PEACE AND SAFETY SOCIAL AND ECONOMIC WELFARE JUSTICE AND DEMOCRACY 2005 2006 2007 2008 2009 Economic 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% 5 DEVELOPMENT AGENDA IN THE RPJM 2009-2014 Economic Development and People’s Welfare Governance Reform Democracy Law Supremacy and combating Corruption Inclusive Growth and Justice 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

5. 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.

6. Framework fro Welfare Improvement Labor-related Programs Employment Creation • Fiscal-Monetary • Policies • Infrastructure • Acceleration • Package • Investment • Climate Package • Energy policy • SMEs Package • Etc. Economic Growth and Stability People’s Welfare Poverty Reduction • PNPM: • Small-scale • infrastructure • Economic productivity • Environment • improvement • Human resources • improvement Price Stabilization (rice, education, health, basic infrastructure) Basic Needs Improvement Programs Social Protection System Harmonization Community Empowerment Programs • CCT & • other social programs

7. 3 CLUSTERS OF THE POVERTY REDUCTION PROGRAMS POVERTY REDUCTION PROGRAMS Cluster 2 Community Empowerment Programs Cluster 3 SMEs Programs Cluster 1 Program on Social Welfare and Social Security S E L F R E L I A N C E Target: very poor, poor and near poor HH Target: Poor Communities Target: SMEs

8. II. Poverty Situation in Indonesia

9. Tingkat Kemiskinan di Indonesia: 1976-2009 Poverty Trend in Indonesia: 1976-2009 Notes: Methodology improvement in 1996. Sources: Central Statistics Agency

10. Inequal distribution of poor people across regions 21% poor lives in Sumatera 21.9% poor are spreaded in the rest of the country 57.1% poor lives in Java-Bali

11. Sources: Susenas 2009, CSA

12. National Program for Community Empowerment • (PNPM Mandiri)

13. 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.

14. PNPM Components: a. CommunityEmpowerment 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

15. How does the empowerment process work? 4. Social Mapping 5. Community Organizating 3. Poverty Reflections 6. Planning 7. Implementation 2. Community Meetings 8. Beneficiaries • Socialisation • in the communities

16. Putting poverty reduction activities in the hand of the community  for 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 • 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 Block grant tansfer to the poor communities

17. Harmonization Stages 2009 - 2015 2007-2008 (Transition) • 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.

18. 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.

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

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

21. IV. PNPM Mandiri Monitoring system (SIMPADU)

22. What is inside SIMPADU PNPM? 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)

23. Features for Public Users Available for anyone with internet access • National – Province – District • Total of 3 years, or by year • By Program DASHBOARD Create specific queries based on province, district, sub-district, type of activities, or time period CREATE QUERIES To view details of proposed and realized activities, together with the profile of particular sub-district VIEW DATA VIEW MAP To create queries spatially

24. Features for Internal Users Only accessible for the Management & Control Team, in order to conduct for advanced analysis Visual Analysis: Baseline Data, Realization of Activities, Demography data, and Disaster Data GRAPHICS STATISTICS Maximum, Minimum, Average, Variants, Deviation Create Reports of Proposed Activities, Progress of Activities, Realization of Activities, and Community Participation REPORTS THEMATIC MAPS View Data Distribution Spatially

26. FUND ALLOCATION COMPARED TO THE NUMBER OF POOR PEOPLE IN EACH PROVINCE *) Fund form National Budget and Regional Budget, year 2010

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

28. THE USE OF BLOCK GRANT BY THE COMMUNITIES Health, 22.13% Education, 2.01% Social, 9.38% Agriculture, 0.54% Economy, 10.65% Environment, 0.99% Transportation, 52.475% *) Data based on PNPM Rural, PNPM Urban, and PNPM Underdeveloped and Special Region, 2009

29. Distribution of Households without proper access to Sanitation

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

31. THANK YOU