Possible Cooperation with OIC

Pungky Sumadi Director of Social Protection and WelfareNational Development Planning Agency

Republic of Indonesia

First Meeting of the Development and Cooperation Institutions (DCIs) of the OIC Member States

Istanbul13-14 May, 2009

Poverty: Definition and Some Indicators. Macro Economic Management and Poverty

Reduction Strategy. Program Nasional Pemberdayaan Masyarakat

(PNPM) / National Community Empowerment Program.

Program Keluarga Harapan (Household Conditional Cash Transfer / CCT.)

PNPM Generasi Sehat dan Cerdas (Community CCT.)

Possible Cooperation

Presentation Outline

Poverty: Definition and Some Indicators. Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat

(PNPM) / National Community Empowerment Program.

Program Keluarga Harapan (Household CCT.) PNPM Generasi Sehat dan Cerdas (Community

CCT.)

Presentation Outline

PRSP: Those who are not able to meet one of the following basic rights: food, job, education, health, land, shelter, water and sanitation, natural resources management and environment, security and participation.

2008 poverty line: Income is less than Rp. 183.000,-/person/month (PPP USD 1.62)

Learning from past experience, the Government cannot alleviate poverty by itself. The poor community has to be in the driver’s seat.

Definition of Poverty

Poverty Trend in Indonesia: 1976-2008

54.2

47.2

42.3 40.6

35.0

30.027.2 25.9

22.5

34.0

49.5 48.0

38.7 37.9 38.4 37.3 36.1 35.139.3

37.235.0

40.1

33.328.6

26.9

21.617.4

15.113.7

11.3

17.5

24.223.4

19.1 18.4 18.2 17.4 16.7 16.0 17.8

16.6

15.4

0

10

20

30

40

50

60

1976 1978 1980 1981 1984 1987 1990 1993 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Total Number of Poor Population Total Number of Poor Population

Percentage of Poor Population Percentage of Poor Population

12 Years12 Years

Note: A revision has been made in method in 1998, encompassing the expansion of commodities coverage and inter-regional comparability.

The Total Number of Poor Population is Still High

5

29,30%29,30%

52,32%52,32%

21,21%21,21%

43,86%43,86%

7,86%7,86%

20,76%20,76%

9,29%9,29%

27,89%27,89%

Non-poor Poor

Household without access to safe waterHousehold without access to safe water

Household without access to sanitationHousehold without access to sanitation

Household with children aged 12-15 not Household with children aged 12-15 not enrolled in junior high schoolenrolled in junior high school

Household with birth attended by traditional Household with birth attended by traditional paramedicsparamedics

0%0% 10%10% 20%20% 30%30% 40%40% 50%50% 60%60%

Source: SUSENAS 2002, BPS

Some Other Indicators

Household w/o access to sanitation

School < poverty Poorest Richest

Participation line Q1 Q2 Q3 Q4 Q5 Total

Age 7-12 years

Attending School 5.409.470 6.417.181 5.869.866 5.359.679 4.821.673 3.908.571 26.376.970

Not at school 347.482 406.862 192.052 144.900 86.675 50.711 881.200

Never 216.157 249.165 108.110 84.951 49.139 29.143 520.508

Drop out 131.325 157.697 83.942 59.949 37.536 21.568 360.692

TOTAL 5.756.952 6.824.043 6.061.918 5.504.579 4.908.348 3.959.282 27.258.170

Age 13-15 years

Attending School 1.803.155 2.139.783 2.264.164 2.227.993 2.150.977 1.851.319 10.634.236

Not at school 707.504 880.677 552.856 348.869 213.919 106.176 2.102.497

Never 42.040 48.943 20.529 11.105 9.082 6.331 95.990

Drop out 665.464 831.734 532.327 337.764 204.837 99.845 2.006.507

TOTAL 2.510.659 3.020.460 2.817.020 2.576.862 2.364.896 1.957.495 12.736.733

Age 16-18 years

Attending School 790.264 859.483 1.101.313 1.372.766 1.587.247 1.768.792 6.689.601

Not at school 1.443.661 1.765.429 1.481.937 1.151.898 863.661 556.874 5.819.799

Never 48.534 54.801 19.283 18.510 10.145 9.342 112.081

Drop out 1.395.127 1.710.628 1.462.654 1.133.388 853.516 547.532 5.707.718

TOTAL 2.233.925 2.679.713 2.602.533 2.543.174 2.461.053 2.335.008 12.621.481

Source: calculated based on BPS, SUSENAS 2004;Source: calculated based on BPS, SUSENAS 2004;Note: Q1= is the poorest quintile; Q5= is the richest quintile.Note: Q1= is the poorest quintile; Q5= is the richest quintile.

School Participation by Income Classification

Several Poverty Indicators, per Region, 2005

0

10

20

30

40

50

60

Illitera

cy R

ate

Birth

Deliv

ery

by

Tra

ditio

nal

Pers

ons

Without C

lean

Wate

r

Without

Sanitation

Illness R

ate

Unem

plo

ym

ent

Rate

Not R

eachin

g

the A

ge o

f 40

Infa

nts

that

Suffer

Maln

utritio

n

Sumatera Jawa-Bali KalimantanSulawesi NT-Maluku-Papua NasionalSource: BPS, 2005

%

8

The Poor Population are Scattered and not Evenly Isolated (2008)

5 million: East Java, Central Java, and West Java5 million: East Java, Central Java, and West Java

1-2 million: North Sumatera, South Sumatera, Lampung, NAD (Aceh), West Nusatenggara, East Nusatenggara, South Sulawesi1-2 million: North Sumatera, South Sumatera, Lampung, NAD (Aceh), West Nusatenggara, East Nusatenggara, South Sulawesi

500 thousand – 1 million: Papua, South East Sulawesi, West Kalimantan, Banten, DIY (Yogyakarta), Riau, West Sumatera.500 thousand – 1 million: Papua, South East Sulawesi, West Kalimantan, Banten, DIY (Yogyakarta), Riau, West Sumatera.

57 percent of the poor population is concentrated in Java

9

Poverty: Definition and Some Indicators. Macro Economic Management and

Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat

(PNPM) / National Community Empowerment Program.

Program Keluarga Harapan (Household CCT.) PNPM Generasi Sehat dan Cerdas (Community

CCT.)

Presentation Outline

Economic growth and

stability

Employ-ment oppor-

tunity

Povertyreduction

Improved SocialWelfare

Fulfillment ofBasic Needs

Programs

Dev’t of SocialProtection

Program

HarmonizationOf Comm.

Emp. ProgramsPNPM:•Comm infrastructure•Comm productive activities.•Env. Improvement.•HRD

• Fiscal-monatery policy

• Infrastructure programs

• Investment im-prov’t programs

• Improv’t of fiscalpolicies.

• Energy accel’tionprog

• Spec Ec. zoning• Micro credit prog.

(KUR)

• Price stabilization program (rice, etc.)

• Health.• Education• Basic services & infra

CCTs, UCT, Old age, Disabled

Labor improv’t Programs (migrantWorkers, training

Facilities, etc.)

Macro Ec. Mgt and Poverty Reduction Strategies in 2009

Poverty: Definition and Some Indicators. Macro Economic Management and Poverty

Reduction Strategy. National Program on Community

Empowerment/(PNPM). Program Keluarga Harapan (Household

Conditional Cash Transfer / CCT.) PNPM Generasi Sehat dan Cerdas (Community

CCT.)

Presentation Outline

National Program on Community Empowerment (PNPM)

Definition PNPM is a program that places poor communities as the

driver in the decision making process of local development.

Component Community facilitation. Block grant (USD 163,000/sub-district/yr). Local government facilitation.

Coverage and Budget Coverage 2009: All urban and rural sub-districts in the

country (more than 6408.) Budget 2009: USD 1.2 billion.

3. Poverty Reflection:• Pov. Identification.• Conceptualizing poverty.• Identify cause of pov.• Identify potential to overcome problems.

2. Comm. Meeting:• Developing sense of comm.• Democratizing comm.• Awareness of self existense.

1. Socialization to Community:• Social mapping• Program socialization

8. Beneficiaries:• Community groups (esp. the poor)

6. Plan Development:• Identification & prioritization.• Development of programs and activities.• Discussion with service provider (community CCT.)

5. Community Organizing:Establish functional comm. institutionthrough democratic and value based approach.

7. Execution of Activities:• Establish smaller groups of beneficiaries. • Establish common ‘space’ to independently solve problems.

4. Comm. Self Mapping:• Conceptualizing needs and local potentials.• Problem solving.

PNPM - Community Empowerment ProcessPNPM Community Empowerment Process

Educa

tion

Health

Agriculture

Fish

erie

sFore

stry

Infr

ast

ructu

reEtcetra

Main PNPM Programs Consist of:

• KDP (rural.)• UPP (urban.)• RISE (fast growing rural districts.)• SPADA (disadvantage / special areas.)

PNPM components: • Open menu community grants.• Comm. facilitatiion, technical supervision,

training and local gov’t empowerment facilities.

PNPM support programs All sectoral programs (including legal sector.)

PNPM support components:• Sectoral community grants.• Sectoral / technical facilitators.

Legal G

en

der

Harmonization of Community Empowerment Program within PNPM

Harmonization at National Level

Coordination among ministries is still a problem.

Among donor is even easier PNPM Support Facility.

Improve everything related to tap international financial resources (budgeting, procurement, reporting/accounting) and make better use of them.

Natural Disaster Management and Mitigation

Indonesia is in the natural disaster prone area.

Community (with empowerment approach) was able to build approximately 70,000 houses in Aceh and more than 220,000 houses in Yogyakarta in one year.

Coordination has been the ghost of development – do it well!

Poverty: Definition and Some Indicators. Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat

(PNPM). Program Keluarga Harapan (Household

Conditional Cash Transfer.) PNPM Generasi Sehat dan Cerdas (Community

CCT.)

Presentation Outline

Health and Nutrition:To improve access of the

poor to basic health care (especially for children and expecting and lactating women).

To improve nutrition condition of the poor children.

Health and Nutrition:To improve access of the

poor to basic health care (especially for children and expecting and lactating women).

To improve nutrition condition of the poor children.

Education:To improve net enrollment

in elementary and junior secondary school for the poor children.

Target group especially for the children who are outside the school system.

Education:To improve net enrollment

in elementary and junior secondary school for the poor children.

Target group especially for the children who are outside the school system.

In the long run: •Improve quality of human resources

•Break poverty chain

ObjectivesObjectives

A replacement for the Unconditional Cash Transfer (Beneficiaries: 19,1 million household.) Poor data quality.

Pilot in 348 subdistricts in 7 provinces in 2005. Design: more or less similar to Mexico’s

Oportunidades. Implementing Agency: Ministry of Social Affairs

(central) and local governments, in coordination with Health, Education, Pos Indonesia (payment), KOMINFO (socialization) and Central Statistics Agency (data.)

Program Keluarga Harapan (Household CCT)

Targeting mechanism: geographical and Proxy Means Testing methods.

2007 Budget: Originally USD 450 million, covering 1 million household, split into demand side (USD 125 million) and the rest was for supply side (mainly education.)

Target beneficiaries: Originally 500.000 households (+/- 2 million people.) Actual: 392.000 households (1.28 million people.)

Actual used of 2007 budget: USD 67 million (due to 15% budget cut and reduced # of beneficiaries.)

2009: USD 100 million for 720,000 households.

Program Keluarga Harapan (Household CCT)Program Keluarga Harapan (Household CCT)

Benefit: Fixed assistance/family: $21.50/year. Health: $86/year for expecting/lactating woman

and children under 5. Education: $43/year for elementary school and $

86/year for junior high. Evaluation design:

Baseline survey. Rapid assessment (what’s wrong with the design.) 2 yearly evaluation.

Program Keluarga Harapan (Household CCT)Program Keluarga Harapan (Household CCT)

Poverty: Definition and Some Indicators. Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat

(PNPM). Program Keluarga Harapan (Household

Conditional Cash Transfer / CCT.) PNPM Generasi Sehat dan Cerdas

(Community CCT.)

Presentation Outline

Definition: A community-based CCT. Household CCT conditionalities apply, but benefit goes to community to decide.

Coverage and Budget: 129 sub-districts (1625 villages = 1,1 million people)

treatment and 129 sub-districts control. No overlaps with household CCT.

Budget USD 6 million for 2 years.

Benefit: USD 8700/village/yr.

Duration of pilot activities: 2007 - 2009.

PNPM GENERASI SEHAT DAN CERDAS(Community CCT)

Health Indicators: Expecting mothers: At least 4 times check ups and

receive iron tablets. Delivery assisted by medical professionals. Post natal care (incl. the new born child.) 0-59 month child: routine check up, receive vitamin

A.

Education Indicators: Students 6 – 15 yrs are enrolled in schools with at

least 85% attendance.

How Does the Project Achieve Its Objectives?

Health: Public awareness. Food supplement. Transport cost for mothers

and midwifes. Subsidy / savings for

deliveries. Equipment for health

centers. Improve local

infrastructure of health centers.

How Do They Use the Money?

Education: School uniforms, books,

shoes for students. Transport cost. Bikes for junior high

students. Remuneration for

voluntary teachers. Improvement / building

additional classrooms. Improvement of school

related infrastructure.

South-South cooperation and exchange of experience in macro economic management—including experience in handling current global crisis—and community empowerment approach in poverty reduction, and natural disaster management / mitigation.

Training and capacity building programs in monitoring and evaluation of the above subjects.

Statistical cooperation in MDG monitoring indicators, poverty targeting (especially at individual levels.)

For Indonesia: reduce traditional western-controlled sources of funds and mobilize new resources from OIC members countries.

Jakarta Commitment: Bringing donor community to be in line with Indonesia’s development agenda and improving aid effectiveness.

Possible Cooperation

TERIMA KASIH