1. Indonesia PNPM (National Community Empowerment Program)

2. 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

3. 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

4. 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

5. 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

6. 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.

7. 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.

8. 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

9. 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.

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

11. 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)

12. 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

14. 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 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