PNPM Mandiri Information Kit 2014

i

iii

01

Efforts To Alleviate Poverty In Indonesia / 2

02

PNPM Mandiri / 4

03

Basic Principles / 6

04

Components and Scoope of Activities / 8

05

Management / 10

06

Institutional Structure / 12

07

Funding / 14

08

Monitoring and Supervision / 16

09

Complaint Handling System / 18

10

Programs and Coverage Area / 20

11

PNPM Result to Date / 22

12

PNPM Mandiri Road Map / 30

13

5 Pillars of the PNPM Mandiri Road Map / 32

14

Village Law / 34

15

Ministry and Institution Contact Information / 36

16

Glossary / 38

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01

EFFORTS TO ALLEVIATE POVERTY IN INDONESIA

The development’s main priority is the improvement of people’s welfare through eradicating poverty.

In Indonesia, problems with poverty include the following: 1.

In March 2013, the number of people living below the poverty line was 29.07 million, or 11.37 percent of the total population of Indonesia. This figure represents a significant decrease of 0.52 million people compared to the poverty number in September 2012 (BPS – compiled from Susenas BPS).

2. Unemployment in Indonesia remains high at 7.4 million people, or 6.25 percent of the total workforce (BPS, August 2013).

3. Access to health services, education, housing and settlement, infrastructure, capital/credit, and information for the poor remains uneven and limited across various regions.

4. Slums and pockets of povertyare scattered throughout urban areas.

Poverty, which is widespread and complex, must be addressed in an integrated, well-planned and sustainable manner. For that reason, in line with Presidential Regulation (Perpres) No. 15/2010, the government developed three clusters of poverty programs. The government later added another cluster, known as “Cluster 4”, that concerns pro-people programs and follows the president’s instructions, as listed below:

Presidential Regulation No. 13/2009, supplemented

by Presidential Regulation No. 15/2010

Direktif Presiden

Cluster I

Cluster II

Cluster III

Cluster IV

Family-based Social Assistance and Protection Program

Community Empowerment Program (PNPM Mandiri)

Empowerment of Small and Micro Enterprises

Pro People Program (following the President’s Instruction)

Decreasing the burden and improving the life quality of the poor

Increasing the capacity of the poor so they can participate in the development process

Increasing savings and ensuring the sustainability of businesses

* As specified by Presidential Regulation No. 15/2010, there are three clusters in the Poverty Alleviation Programs in Indonesia

Providing low cost basic facilities for the poor through the implementation of coordinated sector activities in certain regions

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3

PNPM Mandiri budget and targets for 2014*: PNPM Rural

Rp

7.599 T

5,300 sub-districts

PNPM Urban

Rp

1.380 T

1,189 sub-districts

PNPM Mandiri Rural Infrastructure (RIS-PNPM)

Rp

150 M

188 sub-districts

PNPM Mandiri Regional Social and Economy) Infrastructure (RISE/PISEW)

Rp

616 M

237 sub-districts

*Source: List of BLM Locations and Allocationsfor 2014

This information kit will focus on Cluster II of the four clusters used in the Poverty Alleviation Programs.

Cluster II concerns Community Empowerment (PNPM Mandiri).

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PNPM MANDIRI The National Program for Community Empowerment Mandiri (PNPM Mandiri) is a national program and isused as a basis and reference for implementing community-driven development programs.

PNPM Mandiri was first implemented in 2007. It is the expansion of the Development Program (KDP/PPK) that was later changed into the Urban Poverty Program (P2KP). The success of KDP and P2KP became a model for community empowerment programs in rural and urban areas. PNPM Mandiri is seen as an umbrella for various poverty alleviation programs that use Community-Driven Development (CDD) as their approach.

PNPM Mandiri was launched by the President of the Republic of Indonesia, Susilo Bambang Yudhoyono, in Palu, Central Sulawesi on April 30, 2007. It will be implemented until 2015, in line with the achievement of the MDGs (Millennium Development Goals). It is expected that between 2007 and 2015, communities will establish self-reliance and capacity and so they can continue the implementation of the program on their own.

The objectives of PNPM Mandiri are to improve the welfare and increase the employment of the poor. It aims to achieve this by developing people’s capacities (both individually and collectively) to solve various problems they face in improving quality of life, self-reliance, and prosperity. They should be able to solve these problems by utilizing their economic and social potential through an independent development process.

PNPM MANDIRI PROGRAM CATEGORIES: PNPM MANDIRI

PNPM Urban

PNPM Rural

PNPM RIS

PNPM RISE/PISEW

PNPM Rural’s Supporting Programs:

Program pendukung lainnya:

• • • • • • •

• • • •

PNPM Green PNPM RESPEK (Papua) PNPM Mandiri BKPG (Aceh) PNPM Integration/P2SPP PNPM Mandiri Respek Agriculture PNPM Mandiri Post Disaster PNPM Mandiri Post Crisiss

• • • • •

PNPM Generasi PNPM Peduli Creative Community II PNPM Mandiri Sanimas (Urban and Sanitation Program) PNPM Mandiri Pamsimas PNPM Mandiri Rural Agribusiness Development PNPM Marine and Fisheries PNPM Mandiri Tourism PNPM Mandiri Housing and Settlement

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02

PNPM Mandiri Implementing Agencies 1. Directorate General of Village Community Empowerment (PMD) – Ministry of Home Affairs is responsible for implementing PNPM Mandiri Rural and its supporting programs (by working together with related ministries).

2. Directorate General Cipta Karya – Ministry of Public Works (PU) is responsible for implementing PNPM Mandiri Urban, PNPM Mandiri Regional Development

of Socio-economic Infrastructure (RISE / PISEW) and PNPM Rural Infrastructure (by working together with related ministries).

COMMUNITY EMPOWERMENT CYCLE IN PNPM MANDIRI

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BASIC PRINCIPLES PNPM Mandiri emphasizes the following basic principles in its activities: a.

Focus on Human Development The implementation of PNPM Mandiri should always be about improving human dignity.

b.

Autonomy When implementing PNPM Mandiri, communities have autonomy to decide and manage their development activities.

c.

Decentralization The authority of development activities and management, at sector and regional levels, are in the hands of regional governments or communities, based on their capacity.

d. Pro-Poor All activities in the program prioritize the interests and the needs of the poor and disadvantaged communities.

7 e.

Community Involvement and Participation Communities are actively involved in every decision about development, and work together on development projects.

f.

Gender Equality and Justice Men and women have fair and equal opportunities at every development stage, as well as equal rights to benefit from the development.

g.

Democracy Every decision about development projects are made through community meetings, with the poor as the main priority.

h. Transparency and Accountability The community must have adequate access to all information and to the process of decisionmaking to insure transparent and accountable project management. i.

Priority The government and the communities must prioritize poverty reduction and people’s urgent and beneficial needs by utilizing various limited resources wisely.

j.

Collaboration Everyone is encouraged to foster collaboration and synergic partnerships among stakeholders for poverty reduction.

k.

Sustainability All decision-making must include the consideration of improving people’s welfare, for today and for the future, while also protecting the environment.

l.

Simplicity All regulations, mechanisms, and procedures used in the implementation of PNPM Mandiri must be simple, flexible, easy to understand and manage, and accountable.

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COMPONENTS AND SCOPE OF ACTIVITIES COMPONENTS OF ACTIVITIES IN PNPM MANDIRI The following components are the key elements that must exist within each program of PNPM Mandiri: •

Community Development This component includes a series of activities to build the critical awareness of communities which consist of: mapping potential, problems and needs, carrying out participatory planning, community organizing, resource utilization, and monitoring and maintaining development outcomes.

•

Community Block Grant (BLM) BLM is a stimulant fund provided to community groups for financing activities that have been planned to improve their welfare, especially the welfare of the poor.

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•

Strengthening Capacity of Local Government and Actors Strengthening the capacity of local government and actors aims to create a positive, conducive, and synergistic environment for the community, especially the poor, so they can have a decent living standard. Activities in this component include seminars, training, workshops, field visits, etc.

•

Technical Assistance for Program Management and Development This component consists of activities to improve the capacity of the government and other stakeholders in activity management, such as management consultation, quality control, evaluation, and program development.

SCOPE OF ACTIVITIES PNPM Mandiri is open to all activities related to poverty reduction that are proposed and approved by communities, for example: •

Providing housing, and basic social and economic infrastructure developments (through labor intensive methods).

•

Providing financial resources through revolving funds and micro credit to develop the economic activities of the poor. Women are prioritized in utilizing these revolving funds.

•

Activities to improve human qualities, especially as related to MDGs and accelerating the achievement of MDGs.

•

Increasing the capacity of communities and local governments by building critical awareness, providing training in business skills, organizational and financial management, and by practicing good governance.

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05

MANAGEMENT

PNPM Mandiri management includes preparation, participatory planning, activity implementation, control, administration, complaint handling, evaluation, reporting, and socialization. a.

Preparation Includes the arrangement of general policies, location determination, funds availability, and the deployment of consultants and facilitators.

b.

Participatory planning Includes planning at the village level, as well as coordinated planning at sub-district and regency levels.

c.

Activity implementation Concerns selecting and determining organizations that will manage activities, disburse funds, mobilize labor, provide material and equipment, and implement the proposed activities.

d. Control Control is necessary to ensure project implementation in line with the program’s goals and targets.

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05

e.

Complaint Handling Management Complaint handling management starts at the location closest to the complaint handling unit, so complaints can be dealt with as quickly as possible. Communities, the government, and stakeholders are responsible to manage and handle the complaints.

f.

Evaluation Evaluation should be done regularly – by both the program organizers and independent parties, such as NGOs, universities, and research institutions.

g.

Reporting Reports should be made regularly and follow the hierarchy levels of the government’s structural line, and the functional line of PNPM consultants and facilitators.

h. Socialization The purpose of PNPM Mandiri socialization among various parties is to build understanding, interest, and support for PNPM Mandiri.

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06 INSTITUTIONAL STRUCTURE The institutional structure of PNPM Mandiri consists of the government, communities, business owners, facilitators, consultants, and stakeholders who are involved in poverty reduction and efforts to achieve the objective of PNPM Mandiri.

As is mentioned in Presidential Regulation (Perpres) No. 15/2010 concerning the acceleration of poverty alleviation, the control of the all poverty alleviation programs, including PNPM Mandiri, is in the hands of TNP2K, or the National Team for Accelerating Poverty Reduction. TNP2K is chaired by the Vice President, Deputy I Minister of the Coordinating Ministry for People’s Welfare, and Deputy II Minister of Coordinating Economic Ministry with assistance from the Oversight Working Group (POKJA Pengendali). POKJA Pengendali consists of officials from the Coordinating Ministry for People’s Welfare, the National Development Planning Agency (Bappenas), Home Ministry, Public Works Ministry, and other ministries involved in PNPM Mandiri.

The Coordinating Team for Poverty Reduction (TKPK) was established to increase the coordination of poverty reduction efforts at the province and regency levels. At the province level, TKPK is placed under and responsible to the vice governor. At the regency level, TKPK is placed under and responsible to the deputy regent or mayor.

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Ministries/Related Institutions

Central National and Regional Consultants

Province

TNP2K PNPM Mandiri Oversight Working Group at National Level

Work Unit

SKPD Implementers

Provincial Consultants

Provincial TKPK

Work Unit District/ Municipality District/Municipality Facilitators/Coordinators

SPKD Implementers

District/Municipality TKPK

Work Unit

Sub-district/Village/ Local Administrative Unit (kelurahan) Sub District/ Village Facilitators

BKAD MAD/K, UPK Community Self-Support Institution/ Community Project Implementation Team

Beneficiaries in the Community

Notes:

SKPD- Regional Administrative/Logistics Work Unit TKPK – Regional Coordinating Team for Poverty Reduction BKAD- Inter-Village Cooperation Body MAD/K – Inter-Village/Sub-district Consultations

Body/Person Responsible for Activity Operations (PJOK)

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FUNDING PNPM MANDIRI’S SOURCES OF FUNDING PNPM Mandiri, as a joint program between central and local governments, is funded by the State Budget (APBN) and the Regional Budget (APBD) of a province or regency. PNPM Mandiri is also open to contributions from the private sector, communities, and various organizations.

The PNPM Support Facility, or PSF, was established in 2007 to coordinate grants from various donors. PSF is chaired by the Deputy of Bappenas for Poverty, Labor, and Small and Medium-sized Businesses (UKM). PSF provides technical support to the government related to planning, policy, management, and financial planning of PNPM Mandiri.

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DISBURSEMENT OF PNPM MANDIRI FUNDS The procedure for disbursing funds from APBN and APBD follows existing regulations and mechanisms. For Community Block Grants (Bantuan Langsung Masyarakat – BLM), funds are distributed to collective community bank accounts that are opened with at least two specimen signatures of community members who receive the assistance.

PNPM Mandiri BLM Fund Distribution System

The transfer of BLM funds to community accounts is done in phases, or based on their needs and types of assistance. If, in the implementation of PNPM Mandiri or in the use of BLM funds, non compliance or corruption is found, then the PNPM Mandiri Working Unit (Satker) – based on the recommendation and input from a consultant and the local government – may cancel the distribution of BLM funds in part or in whole.

Bank Indonesia Special Account Other Funding Sources Account

National

KPPN (Ministry of Finance’s Treasury Office) Operational Bank District Community Collective Account State Banks (BRI, BNI, etc.)

Sub-district/Village Community/Group

BLM FUNDS ALLOCATED FOR PNPM MANDIRI Indicative ceiling (in billions of rupiah) Year

PNPM Mandiri Rural

2011

8,234.30

2012

PNPM Mandiri Urban

PNPM Mandiri (RIS PNPM)

PNPM Mandiri PISEW

1,218.6

480.60

355.5

8,020.10

1,414.73

150

355.5

2013

7,806.2

1,391.3

150

355.5

2014

7,599

1,380

150

616

07

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08

MONITORING AND SUPERVISION Monitoring and supervision is necessary to ensure that implementation corresponds to the approved goals and targets, and to ensure that funds are used accordingly. For its supervision and monitoring activities, PNPM Mandiri adopts the system below: •

Participatory monitoring and supervision by communities Communities are involved in the monitoring and supervision process. The process ranges from participatory planning to the implementation of PNPM Mandiri from the village level up to the regency level.

•

Monitoring and supervision by the government Monitoring and supervision by the government follows its hierarchy orders to ensure that PNPM activities are implemented in accordance with the program’s principles and procedures. It also aims to ensure that the use of the funds corresponds to the program’s goals.

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•

Monitoring and supervision by consultants and facilitators Monitoring and supervision by consultants and facilitators is done at the national, regional, province, regency or city, sub-district, and village levels. Consultants and facilitators carry out monitoring and supervision by regularly utilizing the program’s information system and by visiting the locations. Facilitators supervise each step of the development process to see whether there is anything to improve and adjust in the program implementation.

•

Independent monitoring by third parties PNPM Mandiri provides opportunities for other parties, such as NGOs, universities, and journalists to monitor PNPM Mandiri independently and to report their findings to authorized institutions.

•

Financial review and audit To safeguard against misuse of funds, the State Development Finance Controller (BPKP) and the City Inspectorate, as the government’s audit agency, conduct regular inspections at several locations that are randomly chosen.

08

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09 THE COMMUNITY COMPLAINT HANDLING SYSTEM The Community Complaint Handling System is implemented at all levels and is the responsibility of communities, the government, and stakeholders. Communities can submit a complaint to the consultants, facilitators, government workers, NGOs, or to the addresses mentioned below. Each PNPM program and the office of the PNPM Oversight Working Group (POKJA Pengendali) will record the complaint and follow it up.

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PNPM Mandiri Rural: Address : Jl. Raya Pasar Minggu Km 19, Jakarta Phone : 7919 1684/ 7919 9648 Fax

: (021) 7919 6118 SMS

: 0857 1030 1234 Email : pengaduan@pnpm-perdesaan.or.id atau pengaduan@nmc.ppk.or.id Website : www.pnpm-perdesaan.or.id PNPM Mandiri Urban: Address : Jl. Danau Toba F3 No. 8 Bendungan Hilir, Jakarta Pusat Mail Box : 2222 JKPMT Phone : (021) 3790 02725 SMS : 0817 148 048 Email : ppm@pnpm-perkotaan.org Website : www.p2kp.org PNPM Mandiri Regional Development of Socio-Economic Infrastructure (RISE / PISEW): Address : Jl. Tulodong Bawah II No. 24 Jakarta Selatan 12190 Phone : (021) 573 3323 Fax : (021) 522 2909 SMS : 0816 77 4500 Email : upm@pnpm-pisew.org Website : www.pnpm-pisew.org PNPM Mandiri Rural Infrastructure (RIS): Address : Jl. Cipaku V No. 1 Kebayoran Baru, Jakarta Selatan 12170 Phone/Fax : (021) 7395 673 SMS Center : 0813 2862 9901 Email : sekretariat.rispnpm@gmail.com atau npmc@rispnpm.org PNPM Mandiri Oversight Committee: The Coordinating Ministry for People’s Welfare Address : Jl. Medan Merdeka Barat No. 3, Lantai 6, Jakarta Pusat 10110 Phone/Fax : (021) 345 9077 Email : pengaduan-pnpm@gmail.com Facebook : www.facebook.com/pengaduan.pnpm Twitter : @PNPM_Mandiri

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10 PROGRAMS AND COVERAGE AREA PNPM Mandiri programs are designed to alleviate poverty and increase employment of the poor by empowering communities. The approaches used in the programs are: a. Community participation b. Empowering community capacity c. Activity implementation by communities d. Creating positive action for women

PNPM Mandiri programs include: PNPM Mandiri Rural PNPM Mandiri Rural aims to empower communities in rural areas. It is the extension of the original program called the Kecamatan Development Program (PPK), launched in 1998.

The amount of Community Block Grants (BLM) allocated for sub-districts is between Rp900 million and Rp3 billion. It depends on the ratio between the number of the poor and the total population of a sub-district.

• • • • • • •

PNPM Green Strategic Village Development Planning (PNPM Mandiri RESPEK) for the People of Papua Financial Assistance Program PeumakmoeGampung (BKPG Aceh) Participatory Development System Programme (P2SPP) PNPM Mandiri RESPEK for Agriculture PNPM Mandiri Post-disaster PNPM Mandiri Post-crisis

Further information on PNPM Rural can be accessed at www.pnpm-perdesaan.or.id.

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PNPM Mandiri Urban PNPM Mandiri Urban is designed to empower communities in urban areas. The program is the extension of the original program called the Urban Poverty Program (UPP), launched in 1999.

The amount of the Community Block Grants (BLM) allocated for villages is between Rp150 and 350 million. It is based on the number of poor families and the total population of a village. Each village receives BLM for at least three years.

For further information on PNPM Mandiri Urban, please visit: www.p2kp.org.

PNPM Mandiri Rural Infrastructure (RIS) PNPM RIS is designed to give more access to basic infrastructure facilities for low income communities in rural areas. RIS prioritizes development in villages with poor infrastructure facilities. The amount of the Community Block Grants (BLM) allocated for these villages is Rp250 million.

For further information on RIS, please visit www.rispnpm.org.

PNPM Mandiri Regional Development of Socio-economic Infrastructure (RISE / PISEW) PNPM RISE is designed to address inequality among regions by developing socio-economic infrastructures.

The amount of the Community Block Grants (BLM) allocated for this program is Rp1.5 billion for a sub-district and Rp2 billion for a regency.

For further information on RISE, please visit www.pnpm-pisew.org.

PNPM MANDIRI LOCATIONS 2014

Items/Program Number of Provinces Number of districs/cities Number of sub-districts

PNPM Mandiri Rural

PNPM Mandiri Urban

PNPM RIS

PNPM Mandiri PISEW

33

34

4

9

401

279

37

36

6.914

1.189

188

237

Source: List of BLM Locations and Allocation 2012, approved by the PNPM Oversight Working Group (POKJA Pengendali) on October 25, 2013. **Starting 2009, the allocation for PNPM Mandiri covers all the sub-districts in Indonesia

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PNPM RESULTS TO DATE (2014) PNPM MANDIRI RURAL PNPM Mandiri Rural and Urban began in 2007. They were the extensions of original programs called the Kecamatan Development Program (KDP / PPK), started in 1998, and the Urban Poverty Alleviation Programme (P2KP), started in 1999. As of 2014, KDP and PNPM Rural have allocated Rp74.46 trillion for its community block grants (BLM). For the period between 2008 and 2013, P2KP and PNPM Urban allocated Rp9.124 trillion for the grants, while in 2014 they allocated Rp1.388 trillion. Both programs have created positive impactby increasing people’s capacity, welfare, and self-reliance.

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Below are the results of PNPM implementation: 1. PNPM prioritizes low-income communities. The PNPM Rural Impact Evaluation Report for 2012 shows that PNPM Rural has succeeded in decreasing the numbers in poverty, improving the welfare of families, and raising the availability of public services for communities compared to locations without PNPM. • •

•

Between 2007 and 2010, the income of families in PNPM locations increased by 5 percent.

The consumption rate per capita increased by 9.1 per cent, and the numbers in poverty reduced. The consumption rate of very-poor families in PNPM locations increased by 11.8 percent. The consumption rate at the poorest regency increased by 12.7 percent. The number of families escaping poverty at poor sub-districts was 2.1 percent higher than in control areas.

PNPM created more job opportunities. Through its activities in 2010, PNPM was able to create the equivalent of 6 million working days.

2. Better access to basic infrastructure, markets, health-care centers, basic services, educational and health facilities, and clean water.

• •

According to the 2012 PNPM Rural Impact Evaluation Report, more communities received outpatient services in PNPM locations, at a rate 5.1 percent higher than those in control areas.

Generally, villages in the report’s sample already have access to public services such as education, healthcare, clean water, and markets. This situation has increased access to basic services in the last eight years.

PNPM is considered beneficial because it helps build roads that push the economy of communities.

Activities funded by PNPM Rural 1998-2013

Activities

KDP/PPK (1998 – 2007)

40,371 Size of farmlands / length of roads built (Km) 10,451 # Number of clean water systems built 6,732 # Number of schools built or repaired 3,865 # Number of health-care facilities built or repaired 4,822 # Number of public toilets and washing facilities built 9,049 # Number of bridges built 11,062 # Number of irrigation systems built 842 # Number of electric units in villages built 5,041 # Number of educational activities funded by PNPM 1,037 # Number of health-related activities funded by PNPM 68,737 # Number of savings and loan programs for women funded by PNPM *source: PSF Progress Report 2012

PNPM Rural (2008 - 2013) 98,186 18,635 33,446 8,764 8,377 10,688 19,687 2,971 13,721 7,949 178,405

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3.

According to a small-scale study analyzing the economic benefits of PNPM Rural’s infrastructure projects in 2011, three provinces showed an average EIRR (Economic Internal Rate Return) of 26 percent. This high number is a result of greater economic opportunities and activities, due to infrastructure projects built by communities and supported by PNPM Rural.

4.

According to the 2012 PNPM Rural impact evaluation report, PNPM Rural has had a significant influence in improving access to health services. The allocation for health infrastructure has reached 2.4 percent of the total distributed funds. This improvement is seen equally in poor regencies and less-poor regencies.

5.

Significant cost savings in development projects It has been proven that PNPM Rural has succeeded in cost savings of infrastructure development. Community participation and the bottom-up system used in PNPM Mandiri lead to cheaper costs in rural infrastructure development. The cost, on average, is 15 percent to 20 percent lower than the cost of using contractors. The technical evaluation report regarding PNPM Rural infrastructure in 2013 suggests the infrastructure is of higher quality.

Based on the technical aspects evaluated for the report, 82 percent of the infrastructure is classified as “high quality”, 14 as “acceptable quality”, and 4 percent as “failed”. Out of all the facilities evaluated for the report, 90 percent still function and are utilized accordingly by communities.

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6.

Increasing local capacity, local work performance and institutions, as well as democracy education, including the establishment of model planning and participatory financing.

• The program of revolving loan funds opens access to credit for women in rural areas. It helps increase the income of communities and small businesses, as well as opening job opportunities and chances for education for children. As of December 2013, the total capital of the revolving loan funds program reached Rp6.6 trillion. The funds were distributed to 465,000 groups with more than 4.6 million borrowers.

• The 2012 PNPM Rural Impact Evaluation Report showed high participation in PNPM Rural activities, as well as in information access and satisfaction with the program, especially among women and low-income communities. According to data gathered in 2007-2009, 48 percent of people coming to PNPM meetings are women, and 60 percent of the communities are low-income communities. The report also showed that 60 percent of respondents think that PNPM provides good access to information. 68 percent of the program recipients said that they were satisfied with program implementation.

• PNPM Rural allocates—at the highest—25 percent of its funds for the Savings and Loan Programs for Women (SPP). Women utilize SPP to develop their small businesses. In several PNPM Rural locations, the contribution from communities can reach 17 percent of the community block grant (BLM). However, this number has decreased by almost 6 percent after 2007 due to changes in program policy where the contribution of communities is no longer the main requirement in PNPM projects.

• Regional governments are highly committed to the implementation of PNPM Rural. All regencies participating in PNPM Rural provide joint funds allocated from their regional budgets (APBD) for as much as 30-40 percent of the community block grant (BLM). The BLM is allocated by the central government.

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B. PNPM Mandiri Urban •

PNPM Rural has so far funded these infrastructure projects:

Pipes Clean water facilities Drainage Irrigation canals Irrigation facilities Retaining walls Roads Sewers Bridges Bathing, washing, and toilet centers (MCK) Public lighting Housing Sewer waste pipes Health-care facilities Educational facilities Trading facilities Moorings Final landfill sites (TPA) and trash cans

2,043,270 meter 10,548,050 meter 1,264,410 meter 237,519 meter 2,936,242 meter 33,604,642 meter 244,918 meter 168,257 meter 76,581 unit 140,048 unit 1,548 unit 82,051 unit 135,702 unit 13,952 unit 6,479 unit 3,369 unit 12,917 unit 92,540 unit

*Source: PNPM Mandiri Urban

• As many as 632,135 community activity groups (KSM) in PNPM Urban locations participate in the democracy process, planning, and decision making regarding fund allocation for public developments in their villages.

• As of December 2013, the total of PNPM Urban’s revolving loan funds was Rp2.88 trillion. The funds were distributed to 612,148 Community Activity Groups (KSM) with 3,167,599 borrowers.

• Between 2007 and 2013, the total of social funds absorbed through PNPM Urban was Rp627 billion. The funds were used to increase human qualities, health facilities, scholarships, and social aid/grants.

• The BLM funds for social aid/grants make up the lowest portion and will continue to decrease.

This trend is considered positive because it is in line with the new policy adopted in 2008. PNPM Urban encourages that social fundsshould no longer bejust about giving grants but focus instead on creating sustainable impact in communities.

• The participation of women in PNPM Urban’s meetings and activities continue to increase. More than 44 percent of the participants in planning processes and activities are women. 43 percent of those attending community meetings are women.

• Regional governments are highly committed to the implementation of PNPM Urban. Their contribution for the implementation of PNPM Urban has reached 70 percent of the total funds.

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C. PNPM Healthy and Smart Generation (PNPM Generasi)

PNPM Generasi has been supported by the Indonesian government since 2007. Its goal is to accelerate the achievement of MDGs related to the health of mothers and children, as well as basic education services.

• PNPM Generasi is operating in 11 provinces, 64 districs, and 499 sub-districts. It introduced the innovation of using conditional cash transfers for community-driven development programs.

This approach should motivate communities to achieve the 12 indicators related to the education and health of mothers and children.

• PNPM Generasi has increased the number of pregnant mothers taking iron supplements.

According to the 2011 PNPM Generasi Impact Evaluation Report, the number of packets of iron supplements distributed to pregnant mothers increased by 0.08 percent, 4.7 percent higher than the number in control areas.

• PNPM Generasi has significantly reduced the malnutrition rate in communities. Overall, there is a decrease of 2.2 percent. This number is 10 percent lower than the malnutrition rate in subdistricts in control areas.

• There has been a notable impact in East Nusa Tenggara (NTT) where the number of underweight children decreased by 8.8 percent, 20 percent lower than in control areas. The number of severely underweight children has also decreased by 5.5 percent, 33 percent lower than in control areas. The number of stunted children was reduced by 6.6 percent, 21 percent lower than in control areas.

• When it comes to education, PNPM Generasi has increased the rate of school participation of children aged 7-12 by 0.8 percent. According to a survey in 2008-2010, the participation climbed significantly in NTT, where the school registration for children aged 7-12 increased by 3.8 percent, 4 percent higher than in control areas.

• PNPM Generasi encourages women to actively participate in the planning processes and decision making related to basic education and health services. On average, women make up 67 percent of people attending meetings to socialize, plan, and supervise the programs.

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D. PNPM Mandiri Rural Infrastructure (RIS / PPIP)

• •

PNPM RIS is implemented in four provinces (Jambi, Lampung, Riau, and North Sumatra), 34 regencies, and 600 villages. The responsibility for the implementation lies with the Housing Development Directorate, Directorate General Cipta Karya - Public Works Ministry.

Below is the list of infrastructure built by RIS between 2008 and 2012:

RIS / PPIP 1 (completed)

RIS / PPIP 2 (active)

RIS / PPIP 2 (active – 2012)

Neighborhood roads

1,630 km

2,840 km

517 km

# Number of bridges

5,483

4,200

1,000

Types of Infrastructure

# Number of moorings for fishermen’s boats

52

Drainage canals

142 km

260 km

100 km

Irrigation canals

26 km

12 km

4 km

Clean water systems

355

440

26

Water wells

75

1,400

110

Pipes to distribute clean water

50 km

30 km

5 km

Bathing, washing, and toilet centers (MCK)

1,820

510

80

*Source: PSF Progress Report 2012

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E. PNPM Regional Development of Socio-Economic Infrastructure (RISE / PISEW) •

PNPM RISE is implemented by the Directorate General Cipta Karya – Public Works Ministry in 237 sub-districts, 34 regencies, and 9 provinces. Below is the list of infrastructure built by PNPM RISE between 2009 and 2012:

Transportation Roads Bridges Mooring Boat Other Clean water and sanitation Clean water facilities Pipes for clean water facilities Bathing, washing, and toilet centers (MCK) Drainage Health Community health centers and delivery rooms Infrastructure to increase agriculture production Irrigation canals

7,966 km 26,040 meter 216 unit 5,705 paket 2,036 unit 486 km 1,286 unit 310,816 meter 869 unit 529,342 meter

Water facilities for agriculture 750 unit Roads to access farms 43,960 meter Retaining walls 33,645 meter Infrastructure to increase the marketing of agricultural products Farmers markets 398 unit Drying Floors and warehouses 235 unit Education Elementary Schools (SD) and Junior High Schools (SMP) School furniture Equipment *Source: PSF Progress Report 2011

503 unit 4,254 set 121 paket

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PNPM MANDIRI ROAD MAP

The PNPM Road Map shows future development targets as well as various strategies that the government and communities will apply to sustain community empowerment programs in Indonesia. The draft for the PNPM Mandiri Road Map was created in August 2011 by a working group consisting of the National for the Acceleration of Poverty Reduction (TNP2K) and the PNPM Oversight Working Group. They worked on the road map after studying various reviews and consulting with the government, PNPM workers, and communities.

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There are three important intentions indrafting the road map: (i) It should show direction, principles, criteria, indicators, and guidelines for sustainability; (ii) It should show standard processes and best practices to increase the effectiveness and efficiency of the program’s implementation; (iii) it should show a coordinating strategy among development clusters and programs to support the sustainability of independent community institutions, and the accountability of the local governments and communities.

The main approach is to transform an empowerment program into a social movement. By using this approach, the road map sets out three targets for its sustainable achievements: community participation, a self-reliant community, and community engagement as the ultimate goal.

The main reference used in drafting the action plan was the Vice President’s Instruction on PNPM Mandiri Sustainability (March 2012). This became the primary guideline in describing the five policy pillars of the PNPM Mandiri Road Map. The action plan of the PNPM Mandiri Road Map highlights a series of strategic policies to ensure the program achieves its targets, which are community participation, a self-reliant community, and community engagement. Below are the five policy pillars used in the PNPM Mandiri Road Map:

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13 5 Pillars of the PNPM Mandiri Road Map 1. Integrated Community Empowerment Integrated participatory planning and development PNPM Mandiri promotes participation, transparency, and accountability in the development planning process. As a result, the principles, mechanisms, and governance systems that PNPM has promoted should ultimately be integrated in the local government’s principles, mechanisms, and governance systems. Community development planning supported by PNPM should be part of the village’s regular planning, and accommodated by the regency government.

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2. Sustainable facilitation The sustainability of effective facilitation and consultation One of PNPM Mandiri’s successes lies in its effective facilitation and consultation for communities. PNPM’s national meeting stressed efforts to improve the capacity and competency of their community consultants as they are the spearhead of the community empowerment program. The meeting also addressed profession acknowledgement and efforts to create social entrepreneurships. PNPM acknowledges the profession of facilitators by providing certificates, competency tests, and improvements in their standard remuneration packages. This acknowledgement is necessary to preserve the investment and to develop human resources.

3. Strengthening community institutions Strengthening the capacity and the legal status of community institutions Community institutions are established to support community empowerment programs and utilize a significant amount of resources and funds. Because of this, the institutions need both strong capacity andlegal status or the achievementsand hard work of years might go to waste. This strengthening is necessary to preserve the social capital investment that the government has made.

4.The Role of Regional Governments Improving the integration and coordination of the central government, and the partnership between the central government and regional governments Better regional governments mean less work for the central government. Improving the roles of regional governments also means strengthening their capacity and quality. When working on its development programs and community empowerment programs, the central government needs to gradually transfer support and management to regional governments. At this point, regional governments are expected to take initiatives in developing community empowerment programs in their regions.

5. Improving Governance Systems, Transparency, and Accountability Effective and responsive governance systems It’s been understood that good governance is an important part of the community empowerment programs in Indonesia. A policy is needed to accelerate the internalization of the principles and mechanisms of good governance, transparency, and accountability. They should be inherent components at each step of development.

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Village Law

After a long process, Indonesia’s House of Representatives eventually passed the Village Bill on December 18, 2013. The government officially ratified it as the Village Law No.6/2014. PNPM’s main principles are adopted in this law. The government initiated the passage of this law to provide a stronger legal status and to ensure the transfer of the budget from central to regional governments.

Another reason the law is necessary is to institutionalize PNPM principles. The Village Law will be entirely applied in 2015 or 2016. Villages will receive regular funds to support their middle-term development planning and activities. The Village Law will also enable village governments and communities to gain higher responsibilities as long as they adopt PNPM principles, such as annual village meetings and village information systems

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The impact of the Village Law to the PNPM Road Map The drafting of the Village Law was based on what PNPM had learned and achieved. The law adopts the community empowerment policy described in the five policy pillars of the PNPM Mandiri Road Map. The law can be seen as one of the government’s main achievements, ensuring the development and sustainability of PNPM Mandiri. The implementation of the Village Law requires the involvement and support of all state ministries and PNPM’s implementing agencies.

When implementing the law, PNPM Mandiri is expected to be the main supportive instrument and to help the transition from a community empowerment program to a development agenda as it is specified in the law.

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15 DAFTAR KONTAK KEMENTERIAN/LEMBAGA Ministry of Home Affairs (Kementerian Dalam Negeri) Director General for Rural Community Empowerment Address : Jl. Pasar Minggu Km. 19, Jakarta 12072 Phone : (021) 384 6391, (021) 384 6113 Fax : (021) 384 9422 Website : http://www.depdagri.go.id atau http://www.pmd.depdagri.go.id Email : info@pmd.depdagri.go.id Ministry of Public Works (Kementerian Pekerjaan Umum) Director General Cipta Karya Address : Jl. Pattimura No. 20, Jakarta Selatan, 12110 Phone/Fax : (021) 727 965 78 Website : http://ciptakarya.pu.go.id/v3/

37 Ministry and Institution Contact Information: Coordinating Ministry for People’s Welfare (Kementerian Koordinator Bidang Kesejahteraan Rakyat) Deputy for the Coordination of Poverty Alleviation Address : Jl. Medan Merdeka Barat No. 3, Jakarta Pusat Phone : (021) 345 9077 Website : http://www.menkokesra.go.id/ Email : sekretariat@pnpm-mandiri.org National Development Planning Agency (Bappenas) Bappenas Head for Poverty, Manpower, and Small and Medium Scale Enterprise Affairs Address : Jl. Taman Suropati No. 2 Phone : (021) 319 36207 Fax : (021) 2533 707 Website : http://www.bappenas.go.id/ Email : ditpk@bappenas.go.id National Team for the Acceleration of Poverty Reduction (Tim Nasional Percepatan Pengentasan Kemiskinan, TNP2K) Secretariat Vice President Deputy for People’s Welfare Address : Jl. Kebon Sirih No. 35, Jakarta Pusat 10110 Phone : (021) 391 2812 Fax : (021) 391 2513 Website : http://tnp2k.go.id/ Email : tnp2k@wapresri.go.id Ministry of Communication and Information Technology Directorate General of Public Information and Communication Address : Jl. Medan Merdeka Barat No. 9, Jakarta Pusat 10110 Phone/Fax : (021) 385 7974 Website : http://www.kominfo.go.id PNPM Mandiri Management Working Group (Secretariat Pokja Pengendali PNPM) Address : Jl. Merdeka Barat No. 3 Gedung Utama Lt. 12 Jakarta Pusat 10110 Phone/Fax : (021) 386 0565/ (021) 345 9077 Website : http://www.pnpm-mandiri.org Email : info@pnpm-mandiri.org PNPM Support Facility (PSF) Address : Jl. Diponegoro No. 72, Menteng. Jakarta 10310 Phone : (021) 2985 6300/ (021) 3148 175 Fax : (021) 3190 3090 Website : http://www.pnpm-support.org Email : info@pnpm-support.org

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16 GLOSARRY APBD

Local Government Budget

APBN

National Government Budget

BAPPENAS

National Development Planning Agency

Bawasda

Regional Inspection Agency

BKAD

Inter-village Cooperation Body

BLM

Direct Block Grant to Communities

BPKP

State Development Finance Controller

BPS

Central Bureau of Statistic

BRI

Bank Rakyat Indonesia

BNI

Bank Negara Indonesia

Bupati

Head of District

Camat

Head of Sub-district

CDD

Community Driven Development

CHU

Complaint Handling Unit

DIPA

Government Budget Authorization Document

EIRR

Economic Internal Rate of Return

FM

Financial Management

GOI

Government of Indonesia

HH

Household

IDR

Indonesia Rupiah

IRR

Internal Rate of Return

JMC

Joint Management Committee

Kabupaten

District/Regency

KDP

Kecamatan Development Program

Kecamatan

Sub-district

KemenkoKesra

Coordinating Ministry for People’s Welfare

KPK

National Anti-Corruption Committee

KPPN

Ministry of Finance’s Treasury Office

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LG

Local Government

MAD

Inter-village/Sub-district Consultations

M&E

Monitoring and Evaluations

MD

Village Assemblies

MDG

Millennium Development Goals

MIS

Management Information System

MOF

Ministry of Finance

MOHA

Ministry of Home Affairs

MPW

Ministry of Public Works

NGO

Non-Governmental Organization

NMC

National Management Consultant

O&M

Operations and Maintenance

OSU

Operations Service Unit

PAD

Project Appraisal Document

PJAK

Local Project Administrative at Sub-district level

PJM Pronangkis

Medium Term Development Planning for Poverty Alleviation

PJOK

Local Project Manager at Sub-district Level

PMD

Directorate General of Village Community Empowerment, within MOHA

PMU

Project Management Unit

PNPM Mandiri

National program for Community Empowerment

PNPM Mandiri BKPG

PNPM Mandiri for villages is Nanggroe Aceh Darussalam

PNPM MandiriGenerasi

PNPM Mandiri A-Healthy and Bright Generation

PNPM Mandiri Green

PNPM Mandiri for Environment in Rural Areas

PNPM Mandiri Pamsimas

PNPM Mandiri Community-based Water Supply

PNPM Mandiri Pariwisata

PNPM Mandiri Tourism

PNPM Mandiri PUAP

PNPM Mandiri Development of Rural Agribusiness

PNPM Mandiri P2SPP

PNPM Mandiri Participatory System Development Program

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PNPM Mandiri RIS

PNPM Mandiri Rural Infrastructure Support

PNPM Mandiri RISE PNPM Mandiri Regional Infrastructure for Social and Economic PNPM Mandiri Rural

PNPM Mandiri Rural

PNPM Mandiri SPADA

Support for Poor and Disadvantaged Area

PNPM Mandiri Urban

PNPM Mandiri Urban

PNPM-MKP

PNPM Mandiri for Self-Supporting Marine and Fisheries Communities

Podes

Village Potential

Pokja Pengendali PNPM Mandiri Oversight Working Group at National

Level PSF

PNPM Support Facility

P2KP

Urban Poverty Program

RESPEK KDP scale-up, with locally funded block grants in Papua and West Papua Provinces PKPDes

Workplan Village Development

RLF

Revolving Loan Funds

RMC

Regional Management Consultant

RPJMDes

Mid-Term Village Development

R2PN

Rehabilitation and reconstruction of Nias Island

SKPD

Regional Administrative/Logistic Work Unit

SPP

Women Saving and Loan Group

SUSENAS

National Socioeconomic Survey

TA

Technical Assistance

TKPK

Regional Coordinating Team for Poverty Reduction

TNP2K

National Team for Accelerating Poverty Reduction

TOR

Term of Reference

TPK

Community Project Implementation Team

UPK

Sub-district Financial Management Unit

UPP

Urban Poverty project

USD

United States Dollar

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