Indonesia PNPM (National Community Empowerment Program)

Map of Indonesia if drawn based on population The biggest poor population are living in Java-Bali (57%). 25% in the Western regions, and 17% in the Eastern regions (the most lagging regions). In total there are ~ 36 million poor population Source: CPS Change Team

Map of Indonesia if drawn based on economy Source: CPS Change Team. Provincial’s size shows the proportion of provincial GDP relative to national GDP

PNPM and Poverty Program ‘Clusters’ Cluster I: Social Safety and Protection. Programs: Rice for the Poor (Raskin), School Operation Support (BOS), Health Security for the Poor, Cash Transfer, Other social programs (post-disaster, marginalized groups) Cluster II: Community Empowerment; now known as PNPM Mandiri. Cluster III: Strengthening small and micro enterprises: Kredit Usaha Rakyat (KUR), Pengembangan Usaha Agribisnis Perdesaan (PUAP) Source:pnpm-mandiri website

PNPM Community Driven Approach Villagers plan and decide on investments, control funds, implement the projects themselves, account for funds, and maintain facilities/ infrastructure built. With facilitation and technical backstopping

How Rural PNPM operates? Government provides unearmarked Block Grants to subdistricts (kecamatan) annually. “Open menu” (except for a small “negative lists”) The Block Grant funds disburse when villages agree on priorities for funding (based on village proposals) Direct transfer of funds from government treasury to joint community account at the subdistrict level (UPK) UPK channels funds to village implementation committees based on work plans and progress Accountability procedures are set and agreed to poorer members of the community constitutes ±54% of participants in KDP sub-village and village level meetings ~ 70% the workforce for infrastructure works is composed of the poorer villagers. In KDP-1, women generally comprised some 26 to 45 percent of all participants in KDP village and kecamatan meetings. In KDP-2, women generally comprised some 36 to 60 percent of all participants in KDP village and kecamatan meetings. KDP-2 introduced separate meetings for women.

How Rural PNPM operates? Villagers identify their own problems and discuss alternative solutions Planning starts with brainstorming at hamlet/ community group meetings and moves on eventually to Inter Village Forum discussions to agree on priorities Proposal preparation and verification is done by villagers themselves with backstopping from facilitators and sectoral agencies Funding decisions by Inter Village Forum (community representatives from villages) without govt. “interference” Implementation/construction by villagers themselves under the management of the Village Implementation Committee Works monitored by village councils and groups elected by villagers for this purpose Operations and Maintenance by elected Village O&M Teams poorer members of the community constitutes ±54% of participants in KDP sub-village and village level meetings ~ 70% the workforce for infrastructure works is composed of the poorer villagers. In KDP-1, women generally comprised some 26 to 45 percent of all participants in KDP village and kecamatan meetings. In KDP-2, women generally comprised some 36 to 60 percent of all participants in KDP village and kecamatan meetings. KDP-2 introduced separate meetings for women.

From Village Proposals to Funding Decision To agree on 3 proposal,s (2 from women ) to be brought to the inter-village forum meeting To agree on 6 village reps (3 females), proposal writing team & candidate for UPK Village Meeting Village Proposals discussed and ranked I-V F Head & Secretary elected UPK management staff (re)elected Inter Village Priority Mtng Using standard templates, Detailed (Engineering ) Designs and Cost Estimates prepared Villagers involved in the process, consulted Design & Cost Write-up Final decision made on funding/amounts for prioritized proposals I-V F meeting reps elected for Kabupaten Planning (Musrenbang) deliberations Inter Village Funding Decision

How Funds are Channeled and Disbursed Funds directly transferred by KPPN (Govt Treasury Office) to village collective accounts at the kecamatan level. Villagers then use these grant funds for productive infrastructure, loans to existing women’s groups for working capital, or for social investments in education and health.

Replenishement Withdrawal Request & Financial Statement 3 stages: 40%-40%-20% UPK Expenditure & progress Report Work plan & progress based

Impact Participation of women and poor is generally high (about 45%) Poverty targeting is successful (Alatas, 2005) Rural PNPM forums reduce conflict (Barron) Rated beneficial--as expected or better: 92% Satisfied with results: 96% Infrastructure fully functional (years after construction): 94% No serious environmental impact or safeguards issues Rural PNPM construction costs are 30% – 56% less than alternative means (construction by contractors)

Program Staffing of PNPM Rural National National Management Consultants – 75 specialist TDC (Training) and 6 Regional Mgt Consultant Contracts Province Provincial Management Coordinators (32) With a team of 10 specialists/ province, on average Kabupaten 3 Kabupaten Facilitators (Social, Technical and Financial) Plus assistants and computer operators Kecamatan At least 2 Kecamatan Facilitators (Social and Technical) A Financial Mgt Unit (UPK) and one Local Asst Facilitator Village At least two Village Cadres (one of the two must be female) Elected Village Implementation Committees

PNPM RURAL – LEVELS & ACTIVIES National Dissemination Workshop Province Pre-Sevice Training Workshop Kabupaten Workshop Link-up Workshop IVF- 2 (Prioritize) Kecamatan IVF- 3 (Funding) UPK Training Evaluation IVF- 1 Dissemination Village Cadres Training Verification Disbursement Writing Proposals Proposals Accountability Meetings Hand Over & Sustaining Activities Village 1st Village Meeting 2nd Village Meeting 3rd Village Meeting Women Meeting Project Implementation Hamlet/ Groups Hamlet/ (Women) Groups Meetings (Collecting Ideas) Election for Village Representatives IVF = Inter Village Forum UPK = Unit Pengelola Kegiatan, responsible for disbursing and managing the Blok Grant. Managers were elected through IVF-2