national program for community empowerment (pnpm mandiri) indonesia’s cdd response to rural...
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NATIONAL PROGRAM FORNATIONAL PROGRAM FORCOMMUNITY EMPOWERMENT COMMUNITY EMPOWERMENT
(PNPM MANDIRI)(PNPM MANDIRI)
Indonesia’s CDD Response to Rural Poverty
IndonesiaIndonesia
BackgroundBackgroundModeled on 2 former government programs: • Kecamatan Development Program (KDP/PPK) &• Urban Poverty Planning (UPP/P2KP).
ObjectivesObjectivesTo Reduce Poverty, by:• Providing cost-effective socio-economic
infrastructure and access to basic services• Improving local governance & capacity• Strengthening local institutions• Increasing local employment opportunities• Empowering communities
Indonesia’s populationIndonesia’s population
Source: CPS Change Team
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
Indonesia’s economyIndonesia’s economy
Source: CPS Change Team. Provincial’s size shows the proportion of provincial GDP relative to national GDP
CDD in Indonesia CDD in Indonesia
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
Poverty Program ‘Clusters’Poverty Program ‘Clusters’
Source:pnpm-mandiri website
Key PrinciplesKey Principles
• Decentralized
• Pro-poor
• Participatory
• Transparent and Accountable
• Sustainable
• “Simple”
• Open Menu (with allocations based on
prioritization of proposals decided on by village
representatives)
From Village Proposals to Funding From Village Proposals to Funding DecisionsDecisions
Inter Village Mtg Dissemination
Village Meeting Socialization
FGD: Collection of
Ideas
Training for Village Cadres, Village
Committees
Special Women Meeting
Village Planning Meeting Village Proposals
2nd Inter Village Mtg Prioritized Proposals
Proposal Writing with/ without cost estimate & design
Proposal Verification
Village Meeting Report IVM
Results, discuss work plan
Village Accountability Meeting (2X min)
Village Meeting Completion Report,
Hand Over
Preparation for Sub-project
Implementation (procurement/
construction plan/ village training)
Supervision and Cross Village
Visit
Last Transfer of Village Funds & subproject
Completion
Certification of Completion, Training of O&M Team
Operation and Maintenance
Evaluation
Inter Village Mtg Final Funding
Decision
Block Grant Cycle - PNPM Rural
Final Proposal/ Design & Cost
Estimate
Transfer of Funds & Sub-project
Implementation
FIELD ORIENTATION AND ASSESSMENT
District Development
Forum
District Agencies
Forum
- Proposal Ranking - Link-up to District
Planning
Funding Options, Kecamatan
Representatives
Nomination of Village Cadres, Village
Committees
1
5
4
6
7
8
2
3
9
1000
Formation of Verification Team
Revolving Fund Management
Approx. Funding Approx. Funding (in US$ million, approx.)(in US$ million, approx.)
PROGRAM LOAN GRANT
KDP I $273.2
KDP II $344.3 $70.8
PNPM 2007 $381.9$121.7PNPM 2008 $226.1
PNPM 2009 $300
PNPM 2010 $785
• 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.
How Funds are Channeled and Disbursed
3 stages: 40%-40%-20%
Work plan & progress based
Replenishement
UPK
Expenditure & progress report
Withdrawal request & financial statement
Program Staffing of PNPM Rural Program Staffing of PNPM Rural
Results Results
• 65,500 km of roads
• 9,000 bridges
• 11,000 irrigations systems
• 28,300 drinking water systems and almost 17,500 sanitation facilities (MCK)
• 6,950 schools (and provided almost 120,000 scholarships to poor students)
• 5,700 health posts
Between 1999 – 2007, villagers built or rehabilitated over:
Impacts of PNPM Rural Impacts of PNPM Rural have been positivehave been positive
• Household welfare • Increase in consumption per capita 5% greater
in PNPM locations compared with control.• The same impact is 5% impact among poorest
20% households.• Impact increases to 19% in the poorest 20% of
kecamatan.• Households moved out of poverty (2.3% more
likely than control areas) and reduction in risk of households falling into poverty.
Impacts of PNPM Rural Impacts of PNPM Rural (cont.)(cont.)
• Employment Generation• 1-2% greater chance of escaping unemployment.• Unemployment already very low (<4%).• Provides temporary jobs during slack season for
agricultural laborers and the poor (>72 million person-days for >6.1 million villagers)
• Physical Economic Infrastructure• Creates greater access to markets and services
(roads) and increases productivity (irrigation)• Improves access to and quality of health and
education services (health centers, schools)• Strong impact on expansion of access to health
services (5% more than control areas)
• Proven Track Record of Low Misuse of Funds (< 1%)
Impacts of PNPM Rural Impacts of PNPM Rural
ImpactImpactParticipation 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
issuesRural PNPM construction costs are 30% – 56% less
than alternative means (ie. construction by contractors)
AcehAceh
The Using KDP/PNPM Rural As “Vehicle” for Other Funds
1. KDP-IOM, IDR 50 million per village for 230 villages and 350 villages in conflict-affected areas in Aceh;
2. KDP-BRA, to channel funds to conflict victims in 67 sub-districts (IDR 217.38 billion)
3. KDP-BRR, to built infrastructure for community settlements in 72 sub-districts (IDR 116.274 billion)
For example:
4. CARE, to built sanitation in Peukan Bada Sub-district, Aceh Besar
5. AUSAid, development Meunasah & Village Halls in 108 villages in 8 sub-districts, Aceh Besar
6. Village Surveys, 2005/2006, surveyed more than 5,900 villages to identify damages and changes post-tsunami and -conflict
AcehAcehThe Using KDP/PNPM Rural As “vehicle” for Other Funds
For example:
PNPM-BKPG—integration of community development programs
In 2009 Aceh allocated > Rp. 962 billion for block grant investment funds to every village and linked its funds to PNPM Rural. Aceh’s BKPG also links musrenbang planning to more transparent & participatory BKPG + PNPM community planning, as shown below:
January February March20102009
June-Oct Nop Dec
Implementation of PNPM-BKPG Period of Musrenbang until Kec (March)
Each village produces a RPJM & RKG (annual work plan) and budget/APBG
Base d on its RPJM, each village reviews & prepares an RKG (annual work plan)
Musrenbang Kec and MAD II of BKPG + PNPM can be done together
AcehAceh
Infrastructure Project: Bridge at Siwalubanua Village
Pati-iron bridge
Infrastructure
Suspension Bridges
Subak Road, Tabanan, Bali
Infrastructure
Road in Central Java
TK (Kindergaten ) in Magetan
Exterior of a School (and KDP Notice Board) in Kairatu
SCHOOL
Clean Water Project at Pengotan, Kec. Bangli, Bali
Irrigation channel at Lamatewelu , Kec. Adonara Timur, Kab. Flores Timur, NTT
Women actively participating in building a road in Garut
First Loan Disbursement at Cikeusal
SPP beneficiary shows her fish crackers, Parit Baru, Selakau, Sambas, Kalbar
SAVING & LOANS
New Polindes in Magetan Socialization in a kecamatan
Challenges/IssuesChallenges/Issues
• The delay of DIPAs every year (mutli-year
budgeting, carry-over, PMK 168 rules, etc.)
• Technical Assistance (too little training, too
late and too many empty TA positions)
• Better inter-sectoral support & coordination
needed going forward
• Intensive routine supervision required • Better pro-poor targeting—more grant
funds to poor, remote areas
RecommendationsRecommendationsPNPM can serve as an effective “vehicle” to build village infrastructure, provide employment opportunities, reduce poverty and help provide a safety net in times of crisis:
• The architecture and program machinery in place &
process familiar (facilitators trained and in place)
• Poverty-targeted (larger block grants for poor
kecamatan)
• The funds provided proven to result in cost-efficient
village infrastructure & local employment
opportunities, reducing poverty in poor areas.