Kementerian PPN/BappenasKEMENTERIAN KOORDINATOR

BIDANG KESEJAHTERAAN RAKYATREPUBLIK INDONESIA

KEMENTERIAN KOORDINATORBIDANG KESEJAHTERAAN RAKYAT

REPUBLIK INDONESIA

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PNPM SUPPORT FACILITY

KEY FINANCIAL INDICATORS | 2008–2013

MILLIONS OF DOLLARS

2008 2009 2010 2011 2012 2013

Pledges 84.4 84.4 155.8 262.4 300.8 437.6

Cash Contributions 23.0 40.8 131.1 207.5 259.1 365.1

Approved Project Commitments 37.4 42.2 90.3 220.4 305.4 342.8

Disbursements 1.8 8.5 36.2 121.8 181.2 246.1

Printed in 2013

This publication is a product of the PNPM Support Facility.

AcknowledgementsThis report was prepared by the PSF Secretariat with contributions from the Coordinating Ministry for People’s Welfare, Ministry of Home Affairs, Ministry of Public Works, Ministry of Finance, the National Development Planning Agency, Asian Development Bank and Japan International Cooperation Agency as well as the project teams.

Lead Writer: Narae Choi and Kevin TomlinsonEditorial Support: Irfan Kortschak (English)Graphic Designer: Bobby HaryantoPhotography: PNPM Communications Team and Irfan Kortschak

PSF Office JakartaPNPM Support FacilityJl. Diponegoro No 72,Jakarta 10310, IndonesiaTel: (+6221) 314 8175Fax: (+6221) 31903090http://www.pnpm-support.org/

The core business of the PNPM Support Facility (PSF) is reducing poverty by supporting the effective leadership and management of the Government of Indonesia’s (GOI) flagship poverty reduction program, the National Program for Community Empowerment, PNPM, which is the largest community–based poverty reduction program in the world.

Through PSF, development partners provide high–quality coordinated technical assistance as well as policy and planning advice and targeted financial assistance to the GOI in support of PNPM.

Established 2007: 10 GOI and Donor Members

2013 PSF PROGRESS REPORTPNPM SUPPORT FACILITY

KEY FINANCIAL INDICATORS | 2008–2013

MILLIONS OF DOLLARS

2008 2009 2010 2011 2012 2013

Pledges 84.4 84.4 155.8 262.4 300.8 437.6

Cash Contributions 23.0 40.8 131.1 207.5 259.1 365.1

Approved Project Commitments 37.4 42.2 90.3 220.4 305.4 342.8

Disbursements 1.8 8.5 36.2 121.8 181.2 246.1

Printed in 2013

This publication is a product of the PNPM Support Facility.

AcknowledgementsThis report was prepared by the PSF Secretariat with contributions from the Coordinating Ministry for People’s Welfare, Ministry of Home Affairs, Ministry of Public Works, Ministry of Finance, the National Development Planning Agency, Asian Development Bank and Japan International Cooperation Agency as well as the project teams.

Lead Writer: Narae Choi and Kevin TomlinsonEditorial Support: Irfan Kortschak (English)Graphic Designer: Bobby HaryantoPhotography: PNPM Communications Team and Irfan Kortschak

PSF Office JakartaPNPM Support FacilityJl. Diponegoro No 72,Jakarta 10310, IndonesiaTel: (+6221) 314 8175Fax: (+6221) 31903090http://www.pnpm-support.org/

The core business of the PNPM Support Facility (PSF) is reducing poverty by supporting the effective leadership and management of the Government of Indonesia’s (GOI) flagship poverty reduction program, the National Program for Community Empowerment, PNPM, which is the largest community–based poverty reduction program in the world.

Through PSF, development partners provide high–quality coordinated technical assistance as well as policy and planning advice and targeted financial assistance to the GOI in support of PNPM.

Established 2007: 10 GOI and Donor Members

In Loving Memory of

Kun Wildan 19 May 1960 – 30 March 2014

vii

TABLE OF CONTENTS

MESSAGE FROM THE CHAIR OF THE JOINT MANAGEMENT COMMITTEE 1

EXECUTIVE SUMMARY 2

THE NEW VILLAGE LAW 7

MOVING FORWARD: PNPM AND BEYOND 9

PNPM MANDIRI: CORE PROGRAMS 16PNPM RURAL 18PNPM URBAN 26RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM) 34REGIONAL INFRASTRUCTURE FOR SOCIAL AND ECONOMIC DEVELOPMENT (PNPM RISE) 40

WINDOW ONE: SUPPORT TO SPECIAL PROGRAMS 45PNPM GENERASI 46PNPM DISASTER MANAGEMENT SUPPORT 58PNPM URBAN IN ACEH 62

WINDOW TWO: IMPLEMENTATION AND COORDINATION SUPPORT 64PNPM RURAL SUPERVISION AND MONITORING 68PNPM FIELD OPERATIONS AND GOVERNANCE AND FIDUCIARY SUPPORT 72TECHNICAL ASSISTANCE TO BAPPENAS AND POKJA PENGENDALI 75PNPM COMMUNICATIONS 78PSF SECRETARIAT 83BAREFOOT ENGINEERS TRAINING PHASE 3 (BE 3) 86COMMUNITY FACILITATORS DEVELOPMENT PROJECT (CFDP) 3 90PRO POOR PLANNING, BUDGETING AND MONITORING PROJECT (P3BM) 93SIMPADU PHASE 2 96VILLAGE TRAINING PROGRAM 99CREATIVE COMMUNITIES 2 102

WINDOW THREE: ON–GRANTING TO INDONESIAN CIVIL SOCIETY 113PNPM PEDULI 114DISABLED PERSONS ORGANIZATIONS (DPO) WINDOW 126

WINDOW FOUR: M&E AND SPECIAL STUDIES 135PNPM MONITORING AND EVALUATION 136LOCAL GOVERNANCE CAPACITY DEVELOPMENT (LGCD) 140PNPM MANDIRI REVOLVING LOAN FUNDS CAPACITY BUILDING AND SUSTAINABILITY PROJECT (PNPM RLF) 144TECHNICAL ASSISTANCE TO THE STATE MINISTRY OF DISADVANTAGED AREAS (KPDT) 149PNPM JUSTICE SERVICE 152LEGAL AID COMMUNITY LEGAL EMPOWERMENT 154

ANNEXESANNEX ONE: FINANCIAL OVERVIEW 158ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2013 161ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009–2012 AND IN 2013 167

INTERVIEWSSUJANA ROYAT, DEPUTY MINISTER FOR POVERTY REDUCTION AND COMMUNITY EMPOWERMENT, COORDINATING MINISTRY FOR PEOPLE’S WELFARE 4TARMIZI A KARIM, MSC, DIRECTOR–GENERAL, DIRECTORATE GENERAL FOR COMMUNITY AND VILLAGE EMPOWERMENT (PMD), MINISTRY OF HOME AFFAIRS 12ADJAR PRAYUDI, DIRECTOR OF BUILDING AND NEIGHBORHOOD DEVELOPMENT, DIRECTORATE GENERAL OF HUMAN SETTLEMENTS (DGHS), MINISTRY OF PUBLIC WORKS 14

STORIESA BASIS FOR PARTICIPATION: SOCIAL CAPITAL IN A POOR KAMPUNG IN JAKARTA 30FEWER CHILDREN DIE AFTER A MIDWIFE TAKES UP A POST IN A REMOTE VILLAGE 54COMMUNITY VIDEO: BRINGING PARTICIPATION TO PEOPLE’S HOMES 108A CIVIL SOCIETY ORGANIZATION ASSISTS A DISTRICT GOVERNMENT TO BUILD A PLAN FOR A MARGINAL GROUP 120INCLUDING PEOPLE WITH DISABILITIES: BELIEVING IT’S POSSIBLE, BELIEVING IT’S IMPORTANT 130

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ABBREVIATION AND ACRONYMS

Aceh–Nias LEDP Aceh–Nias Livelihoods and Economic Development ProgramADB Asian Development BankAIPJ Australian–Indonesian Partnership for JusticeAPBN Anggaran Pendapatan dan Belanja Negara (District Government Budget)APRACA Asia–Pacific Rural and Agricultural Credit Association BaKTI Bursa Pengetahuan Kawasan Timur Indonesia (Eastern Indonesia Knowledge Exchange)Bappenas Badan Perencanaan Pembangunan Nasional (National Development Planning Agency)BE Barefoot EngineerBETF Bank Executed Trust FundBGAP Better Governance Action PlanBKAD Badan Kerjasama Antar Desa (Inter–Village Coordination Body)BKM Badan Keswadayaan Masyarakat (Community Organizations)BLM Community Block GrantsBNPB Badan Nasional Penanggulangan Bencana (National Board for Disaster Management)BNSP Badan Nasional Sertifikasi Profesi (National Board for Professional Certification)BPKP Badan Pengawasan Keuangan dan Pembangunan (Development and Finance Surveillance Agency)BPS Badan Pusat Statistik (Statistics Indonesia)BRI Bank Rakyat IndonesiaCDD Community–Driven DevelopmentCHS Complaints Handling SystemCIO Community implementing organizationCRI Combine Resource InstitutionCSO Civil Society OrganizationCY Calendar YearDFAT Australian Department of Foreign Affairs and TradeDGHS Directorate General of Human SettlementsDIPA Daftar Isian Pelaksanaan Anggaran (Budget–Funded Project Proposal Lists)DPO Disabled People OrganizationDRR Disaster Risk ReductionEDFF Economic Development Financing FacilityEO Executing OrganizationETC Export–Transfer–Load GOI Government of IndonesiaICT Information Communication Technology IKW Regional Poverty IndexIRAI Independent Research Advisory Indonesia JICA Japan’s International Cooperation Agency JMC Joint Management CommitteeKDP Program Pembangunan Kecamatan (Kecamatan Development Program)Kemenko Kesra Kementerian Koordinator Bidang Kesejahteraan Rakyat (Coordinating Ministry for People’s Welfare)KPDT Kementerian Pembangunan Daerah Tertinggal (Ministry of Disadvantaged Areas)KPK Komisi Pemberantasan Korupsi (Corruption Eradication Commission)LGCD Local Government Capacity DevelopmentLLI3 Local Level Institutions IIILPPM–UNCEN Lembaga Penelitian dan Pengabdian Masyarakat–Universitas Cendrawasih (Research and

Community Dedication Institution–University of CendrawasihLSP–FPM Lembaga Sertifikasi Profesi–Fasilitator Pemberdayaan Masyarakat (Institute for Professional

Certification of Community Facilitators)M&E Monitoring and EvaluationMCA–I Millennium Challenge Account–IndonesiaMDGs Millennium Development GoalsMDTF Multi Donor Trust FundMIS Management Information SystemsMoH Ministry of Health MoHA Ministry of Home Affairs (Kementerian Dalam Negeri–Depdagri)MoU Memorandum of UnderstandingMP3EI Master Plan for the Acceleration of Economic DevelopmentMP3KI Master Plan for the Acceleration and Expansion of Poverty Reduction MPW Ministry of Public Works (Kementerian Pekerjaan Umum)

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MPW Ministry of Public Works MSF Multi–Stakeholder ForumND Neighborhood Development NGO Non–Governmental OrganizationNMC National Management ConsultantNTB Nusa Tenggara Barat (West Nusa Tenggara)NTT Nusa Tenggara Timur (East Nusa Tenggara)ODO Operation, Delivery and Oversight P2KP Proyek Penanggulangan Kemiskinan di Perkotaan (Urban Poverty Project)P2SPP Program Pengembangan Sistem Pembangunan Partisipatif (Local Government Participatory

Development Planning Program)P3BM Pro–Poor Planning, Budgeting and Monitoring (Perencanaan, Penganggaran Dan Pemantauan Yang

Berpihak Pada Masyarakat Miskin)PEKKA Female–Headed Household Empowerment program PMD Pemberdayaan Masyarakat dan Desa (Directorate General of Community and Village

Empowerment)PMU Program Management UnitPNPM Program Nasional Pemberdayaan Masyarakat (National Program for Community Empowerment)PNPM Generasi PNPM Generasi Sehat dan Cerdas (PNPM — Healthy and Smart Generation)Pokja Pengendali Steering Committee of PNPMPosyandu Pos Pelayanan Terpadu (village health post)PSF PNPM Support FacilityPTO Technical Operations ManualPWDs People With Disabilities Rekompak Rehabilitasi dan Rekonstruksi Masyarakat dan Permukiman Berbasis Komunitas (Community–Based

Settlements Rehabilitation and Reconstruction Project)RESPEK Rencana Strategis Pembangunan Kampung (Strategic Plan for Village Development)RETF Recipient Executed Trust FundRIS PNPM Rural Infrastructure Support to PNPM MandiriRISE Regional Infrastructure for Social and Economic DevelopmentRKM Rencana Kerja Masyarakat (Annual Investment Plan)RLF Revoling Loan FundRMC Regional Management ConsultantRPJM–Desa Rencana Pembangunan Jangka Menengah Desa (Mid–Term Village Development Plan)RPJMN Medium–Term Development PlanRT Rukun TetanggaRW Rukun WargaSIMPADU Sistem Informasi Manajemen Terpadu (PNPM Integrated Management Information System)SLB Sekolah Luar Biasa (Special Education School)SME Small and Medium–sized EnterpriseSOP Standard Operating ProcedureSPADA Support for Poor and Disadvantaged AreasSPKD Satuan Kerja Perangkat Daerah (Local Government Task Forces)SPP Revoling Fund BeneficiarySUSENAS Survei Sosial Ekonomi Nasional (National Social Economic Survey)TA Technical AssistanceTKPKD Regional Poverty Eradication Coordination Team TNP2K Tim Nasional Percepatan Penanggulangan Kemiskinan (National Team for the Acceleration of

Poverty Reduction)ToT Training for TrainersTUK Test CentreTWG Technical Working GroupUNDP United Nations Development ProgrammeUPK Unit Pengelola Kegiatan (Activity Management Unit)UPP Urban Poverty Project (Proyek Penanggulangan Kemiskinan Perkotaan, P2KP)USAID United States Agency for International DevelopmentYNS–IGGRD Yayasan Nusantara Sejati (Institute of Good Governance and Regional Development)

1

men, women and children have directly benefited from improved access to infrastructure, services and employment thanks to special programs funded by the PSF since the facility’s opening in 2008, and more than 45 million people have benefited from the core PNPM programs.

While PSF’s model as a development and coordination platform is best practice, it will need to continue to evolve as PNPM and Government’s poverty reduction strategies do. The PNPM Roadmap, which addresses PNPM’s future direction, and the Master Plan for the Acceleration and Expansion of

Poverty Reduction (MP3KI), which is being formulated as a broader poverty alleviation framework through 2025, will play large roles in reorganizing the efforts to lift and keep people out of poverty. The recent approval of the Village Law, which adopts and institutionalizes the core principles of community–driven development that were consolidated through PNPM, will also have a substantial impact on the reshaping of PNPM and thus of the PSF. With its level of knowledge and experience, the PSF can make significant contributions to this transition as well as to the formulation of the Government’s upcoming Medium Term Development Plan for 2015–2019.

As Chair of the JMC, I would like to thank fellow PSF partners in the Coordinating Ministry for People’s Welfare, Ministry of Finance, Ministry of Home Affairs, Ministry of Public Works and our development partners from Australia, Denmark, the European Union, the Nethelands, the United Kingdom, the United States, and the World Bank for their significant contributions, all of whom have helped make the PSF a success. I would also like to welcome the MCA–I, the newest member of the PSF.

Rahma IryantiChair, Joint Management CommitteeDeputy Minister For Poverty, Manpower and Small and Medium Enterprises, National Development Planning Agency/Bappenas

As Chair of the Joint Management Committee (JMC) of the PNPM Support Facility (PSF), I am pleased to present the PSF 2013 Progress Report, which summarizes the ongoing progress on PNPM during the year when a number of changes occurred with significant implications for the future of the program. Entering its sixth year, the PSF continued to provide strong support to the Government in its leadership and management of PNPM and to make significant contributions to its development impacts on millions of Indonesians.

The National Program for Community Empowerment (PNPM) has been a main pillar of our poverty reduction strategy since 2007. Despite a remarkable reduction in the national poverty rate from 23.4 percent in 1999 to 11.4 percent in 2013, 28.5 million Indonesians currently live below the poverty line (in 2013) and a significant portion of the population remains vulnerable to falling into poverty. The Government continues to pursue an aggressive poverty reduction strategy, attacking poverty on multiple fronts since we are aware that poverty is not solely about incomes levels, but also about access to education, health and other basic services, vulnerability, and social inclusion.

Being a multi–sectoral program, PNPM contributes to the holistic approach of the Government to poverty reduction by empowering and mobilizing people at the community level to decide on and fund their development priorities. With a proven track record of improving people’s welfare, the program brings communities and individuals together and helps them realize their potential. Active in over 70,000 villages and every sub–district in Indonesia, PNPM is huge in its geographical coverage and broad–ranging in its sectoral scope that includes activities in infrastructure, education, health, environment, microfinance, and social inclusion.

To support the implementation of PNPM, the Government teamed up with international development partners to create the PSF at the end of 2007. As the program’s scale and scope increased, so too did the PSF’s utility and effectiveness as a coordination mechanism that reduces duplication, supports capacity building, and, most importantly, increases development impact. Millions of

MESSAGE FROM THE CHAIR OF THE JOINT MANAGEMENT COMMITTEE

RAHMA IRYANTIDEPUTY MINISTER FOR POVERTY, MANPOWER AND SMALL AND MEDIUM ENTERPRISES, NATIONAL DEVELOPMENT PLANNING AGENCY/BAPPENAS

2 | 2013 PSF PROGRESS REPORT

EXECUTIVE SUMMARY

In 2007, the Government of Indonesia decided to make

community empowerment a pillar of its poverty reduction

approach and set a target to have PNPM reach national

coverage by 2014. In addition to reaching every village

in Indonesia, Government set out to improve economic

welfare through providing cost–effective infrastructure,

strengthen community institutions and their capacity to

formulate their own development plans, and demonstrate

the impact community–driven development can have

on poverty reduction. The Government has been largely

successful and Indonesia has one of the most impressive

community empowerment records in the world.

PNPM has continued to evolve as a community

empowerment and poverty alleviation program. Many

of the principles and practices that have been tested

over the past 15 years are now being integrated into

mainstream local government development initiatives,

providing a strong basis for the members of rural and

urban communities to become the primary actors and

drivers of local development, rather than merely being

beneficiaries. An exciting development was passage

of the new Village Law, which dramatically increases

the role, responsibilities, power and level resources

of Indonesia community institutions. Many of these

community institutions have been introduced, piloted and

strengthened through the PNPM program in the way that

communities prioritize the allocation of resources. The

PNPM Support Facility (PSF) and its partners have played

a significant role in the development of community–based

approaches and systems, and will continue to assist

the Indonesian Government as it implements and builds

upon the new law.

This report summarizes the progress made in

2013 in the PNPM Core programs and across the PSF’s

four operational windows. It also includes personal and

professional reflections from a number of the key actors

in the PNPM program as well as vignettes about program

impacts in rural, urban, and remotes areas and efforts to

enhance participation and to reach the marginalized.

PSF Window One: Support to Special Programs enables

Government to scale up successful projects and test

new approaches by taking advantage of PNPM platform’s

nationwide reach and ability to deliver an array of services.

In 2013, three special programs were financed under this

window: PNPM Generasi, PNPM Disaster Management and

PNPM Urban in Aceh. Over the year, PNPM Generasi which

is helping drive tangible results against the Millennium

Development Goals, particularly in health and education,

expanded its coverage to 369 sub–districts, and is on

track to be implemented in 500 sub–districts in 2014.

Going forward Government will address stunting through

the project and accelerate efforts to address supply–side

constraints to health and education outcomes. The

Disaster Management Support project has helped

rebuild houses, community infrastructure, and generate

incomes in communities affected by natural disasters in

Central Java, Yogyakarta and West Sumatra. The project

was extended to complete sub–projects in Mentawai,

West Sumatra. Many lessons have been learned through

the project, including disbursement channel constraints

and the importance of facilitator readiness and availability,

and are being used to inform new and other disaster

management and emergency response related initiatives.

The PNPM Urban in Aceh project began providing training

to local government agencies and prepared pilot activities

to promote gender equality in Aceh.

PSF Window Two: Implementation and Coordination

Support finances activities to support PNPM’s oversight

bodies and implementing agencies, with a focus on

assisting the Government to strengthen program’s

core management systems. Over the year, PSF field

analysts reviewed more 550 sub–projects in 592 villages

in 223 sub–districts across Indonesia. Fiduciary

specialists partnered with Government to improve

the robustness of PNPM’s fiduciary controls and focused

on supporting the program’s governance framework.

PNPM has increasingly benefitted from national and local

government agencies involvement in the supervision

process, with local governments having implemented

numerous corrective actions to address implementation

3

issues. Moving forward, increased attention will be

supporting the Government in the development of

implementation guidelines for the Village Law and

helping to ensure the readiness of management and

fiduciary systems.

There are over 25,000 PNPM facilitators helping implement

the program across Indonesia. Government’s ability to

attract, retain, train and allocate facilitators is critical to

the program’s success. The PSF continued to support

efforts to improve the competencies and professional

development of facilitators through the Communities

Facilitators Development project, which helped

established a nationally recognized facilitator certification

program. In Tanah Papua, the Barefoot Engineers project

continued to train high school graduates as engineers.

PSF Secretariat continued to provide management and

coordination to the Joint Management Committee.

It helped strengthen the institutional sustainability

of the PSF by: finalizing agreements with partners

to extend the PSF until 2018; implementing many of

the recommendations made in the 2012 Bappenas

led performance review of the PSF; and facilitating

the membership of the Millennium Challenge

Account–Indonesia (MCA–I) and US$95 million pledge. In

2014, the Secretariat will focus implementing transition

arrangements to welcome a managing contractor in

2015 to help the PSF expand its ability to meet increased

demands for its services.

PSF Window Three: On–granting to Indonesian Civil

Society works with CSOs who are uniquely qualified to

reach and work with marginalized groups and people,

many of whom receive only limited or indirect benefits

from government programs, including PNPM. The PSF

supports two CSO projects: PNPM Peduli and the Disabled

Peoples’ Organizations (DPOs). PNPM Peduli, after two

years of project implementation, has helped marginalized

groups gain more access to education, health and legal

services and increased their capacity to form social

networks which allow them to benefit. The DPO project is

specifically intended to benefit people with physical and

other disabilities. During 2013, the project strengthened

the capacity of DPOs to plan and implement projects of

their own and to provide input on policy.

PSF Window Four: M&E and Special Studies aims to

increase access to global experience and expertise in

poverty reduction and community–driven development

as well as the technical and financial resources for

rigorous evidence gathering. Over the year, most of

the activities under this window focused on research

and analytical work to inform data–based policy making,

which served as inputs for the further development and

implementation of the PNPM Roadmap and the recently

approved Village Law. Annex Three summarizes the major

PSF–financed studies. Going forward, the PSF will work

in closely with key stakeholders to identify analytical

work with the strategic value to inform policy making

and operational design, particularly with regard to

the implementation of the Village Law. To address

the challenges in finding qualified social research

organizations in Indonesia to conduct evaluations and

studies, a project to strengthen the capacity of Indonesian

universities PSF undertake quantitative and qualitative

social development research is planned.

Looking forward to 2014, the PSF will continue to focus

supporting the Government’s poverty reduction strategies

through community empowerment approaches and

the strengthening of local institutions, good governance

and accountability, and better services for the poor. As

the Village Law is rolled out, the PSF will align its portfolio

with the needs of Government, with sharp and focused

analytical and operational services.

4

As I will be retiring from my position as deputy minister

in September 2014, this is the last time that I will address

the readers of the PSF Annual Progress Report. I have held

my position for almost ten years, which is a long time for

an official to remain in a particular post. During the period

of my tenure, the context in which community driven

development in Indonesia operates has changed to an

almost unbelievable extent. When I was first appointed

to my position, I frankly felt very pessimistic about

the prospects for achieving change. At the time, there

were so many entrenched interests, so many little kings

in various positions at all levels of the administration.

They each had their own interests, and were prepared

to defend these interests from changes that they felt

would undermine them. Fortunately, there was high

level support for the community driven development

approach and the various programs through which

these approaches have been implemented, including,

over more recent years, the PNPM Mandiri program. With

that support, my staff and I were able to tackle those

interests and push the agenda for the empowerment of

the community forwards.

The progress has been remarkable. There has been

a dramatic shift in the paradigm according to which

the bureaucracy operates. These days, instead of fearing

change, most line department officials, director–generals,

governors, and district heads, actively support the concept

of community–driven development. They have overcome

their fear and learned the community. They have come to

learn that the community driven approach is an effective

means of achieving development. Even more importantly,

the paradigm has changed at the bottom of the pyramid,

with a change in the mindset of the community members

that the Government and the bureaucracy serve. To

a greater extent, the community is prepared to take

responsibility for its own destiny, to be the subject of

change rather than the recipients of aid. When I look

at the groups led by women headed households and see

how they are able to establish loans and savings groups,

to advocate for legal and political change, and to create

good livelihoods, I am almost overwhelmed to see how

much has changed in such a short period.

SUJANA ROYATDEPUTY MINISTER FOR POVERTY REDUCTION AND COMMUNITY EMPOWERMENT, COORDINATING MINISTRY FOR PEOPLE’S WELFARE

“In this critical period of transition, it is vital to maintain a shared

commitment and mutual trust”

5

At the same time, much remains to be done. At present,

we are in a critically important period of transition,

with our endeavors to intensify the transformation of

community empowerment from a program to a social

movement taking place in the context of great political

change. The path to achieving this transformation is

largely defined by the PNPM Roadmap, which outlines

a range of policies, plans and actions whose purpose is

to bring the resources required to enable development

closer to the community, so that the empowerment of

the community is controlled by the community itself,

and not by the Government and its institutions, or

by our international development partners. By achieving

this, we will ensure that community empowerment

continues, regardless of changes in political regimes and

the variations in policies that these changes produce and

regardless of changes in the priorities and commitment of

our development partners.

As part of our efforts to enrich the community and to

provide it with the resources it needs to facilitate its

own development, we need to create the institutional

framework to enable the ongoing building of

the community’s capacities and its institutions. As a step

towards this, I welcome the introduction of the Village

Law, which will provide a framework for the provision of

resources to more than 70,000 villages across Indonesia.

This new law encapsulates all the good principles,

mechanisms, norms, standards and procedures that

have been developed through the implementation of

the PNPM program by establishing a system that enables

the beneficiaries of actions to achieve development to act

as the masters and architects of the programs by which

this development will be achieved. Rather than the central

government deciding whether villages need bridges or

early childhood development facilities, these decisions

will now be made by the people of the villages where

the facilities are located. This is precisely the fundamental

principle of the PNPM program, with many of

the mechanisms and systems to ensure that the principle

is implemented appropriately also developed and tested

through that program.

In addition, we are piloting the decentralization of

the management and administration of the PNPM

program to the provincial level. This is perhaps not

something that could be implemented across Indonesia

in a single step, so we are piloting the approach in two

provinces, Aceh and Central Java, both of which have

expressed their enthusiasm and readiness to participate.

Under this pilot, provincial governments will be tasked

with the many of the duties related to the planning

and implementation of the program that are currently

conducted at the central level. This is intended to enable

the central level administration to go back to the basics,

to establish policy frameworks and guiding regulations

and standards. It is not healthy for the central government

to remain involved with the actual implementation of

the project. Doing so undermines the legitimate role

of provincial governments. As I said, the ultimate goal

of community empowerment is to bring resources

closer to those that they are intended to benefit, and

the decentralization of authority over programs to

manage those resources is a step to achieve this.

While the period of transition creates great opportunities,

it also creates considerable risks. If the transition is

not managed well, all our achievements of the past

decade will count for nothing. To be frank, I am not so

concerned at this stage about external political pressures

and pressures from vested interests. They will continue,

of course, but so will our efforts to manage them.

For me, the biggest threat comes from a weakening

of the commitment from the internal team, from

government agencies and development partners whose

duty it is to facilitate community empowerment. For our

efforts to succeed, it is vital that all members of the team

demonstrate mutual trust, that they adhere to a common

vision and maintain their shared commitment, not just

to the PNPM program, but to the principles that underlie

it. It is critically important that our partners refrain from

prioritizing their own institutional interests and continue

to support the achievement of the shared vision. Partners

must refrain from attempting to renegotiate the terms

of agreements reached through mutual consultation

and consensus when their own institutional priorities

change. If partners cannot agree to place the principles of

community empowerment above their own institutional

interests, then they are not truly partners and cannot

support the achievement of the goals we are striving for.

I believe that the PSF can continue to make a vitally

significant contribution to ensuring that Indonesia passes

through this critically important transition smoothly.

In this period, the Government and its agencies will

require good data and information, they will need to

test new approaches to ensure that new laws, systems,

and institutions fulfill their intended purpose. The PSF

can play a vital role in this, particularly in terms of filling

gaps and eliminating overlap. There are many poor

6

groups in society that are still not being reached by any

government program, and PSF is positioned to assist

the Government in addressing this gap. But to assist

the Government in the achievement of these goals, PSF

cannot act as a donor institution, it must be structured

to achieve maximum impact in terms of strengthening

local community capacities, building the capacities of civil

society, and building bridges between the Government

and the institutions of civil society.

Therefore, far more importantly than facilitating financial

contributions from international development partners,

PSF must play a role in the full and comprehensive

socialization of good values, the values of social inclusion

and good governance. It must strive to ensure that these

values are encapsulated in all policies, guidelines, laws

and regulations, and implemented in all activities and

projects at all levels. To achieve this, while the PSF should

be led by the Indonesian Government, it should not

merely be a government institution. Rather, it should be

a community institution, actively involving representatives

of civil society organizations, universities, and participatory

institutions of all kinds. These elements will ensure that

PSF fulfills its mission and resists pressures to undermine

that mission. Ultimately, their involvement will ensure

that the PSF is controlled by the community and that

resources are constantly brought closer to the community

and placed under the community’s control. If a strong

shared commitment exists among all actors, stakeholders

and partners and if there is a strong relationship of trust,

then I am certain that it will be able fulfill this function.

If it manages to fulfill this function, it will continue

to play a vital role in assisting the community and

the Government to achieve their shared goals. If it does

not fulfill this function, it will become irrelevant.

In closing, I would like to express my utmost appreciation

and thanks to members of the community, particularly

the poorest members of society, who have driven and

participated in efforts to achieve the empowerment

of the community in which they live. It is not only that

our efforts have been intended for their benefit, but

rather that our efforts would not have been possible

and would have had no meaning without their full and

active participation. Community–driven development

is something that belongs to and is operated

by the community, so ultimately, if the approach has

succeeded, it is because of the community’s efforts,

dedication and belief in itself. I also thank the civil

society actors, facilitators, field workers, researchers,

administrators and development partners who have

supported the community in their efforts to achieve

its own empowerment. In particular, I would like to

thank the managers, staff and consultants of the PSF,

who have contributed greatly to building innovative,

brave approaches to community–driven development

in this country. My relationship with these people and

the institution for which they work has not always been

easy and smooth, but I have always respected their

fundamental integrity, dedication and commitment

to the vision we share. I express my hope that my

successor will strive to be a good and faithful servant to

the community and serve it to the best of his or her ability.

I urge all actors in the development process to maintain

their commitment to the underlying goals of community

empowerment, above and beyond their commitment to

a particular program or institution. While programs begin

and end, with changes to their names and the manner in

which they are managed, the principles underlying them

are eternal, and it is these principles for which we must

strive and struggle.

7

On 18 December 2013, the Indonesian House of

Representatives passed the Village Law (Undang–Undang

6 Tahun 2014 Tentang Desa), which dramatically

increases the role, responsibilities, power and resources

of Indonesia’s village communities.1 This law adopts

a number of community–driven development (CDD)

approaches that have been developed and tested through

the PNPM Mandiri programs, mainstreaming the approach

into regular government development initiatives. The new

law incorporates the block grant mechanism developed

under PNPM into regular budget transfers, resulting in

a substantial increase to the amount of funds provided

directly to rural villages to meet its development needs

and provide basic services to communities.

The Village Law will ensure that 10 percent of district

budgets will be transfered to villages. Based on

2013 figures, the value of these transfers would amount

to a total of Rp 100 trillion. If divided equally among

Indonesia’s 73,000 villages, this would amount to around

Rp 1.3 billion per village (about US$127,450), with

the exact amount provided to each village depending

on its population, size, poverty rate, and geographic

location. This is significantly higher than the average

PNPM block grant of some US$20,000–25,000. According

to the law, the use of these funds is to be determined in

accordance with an Integrated Medium–Term Village Plan

(RPJM–Desa), which is to be formulated by directly elected,

democratic village institutions and ratified through

a consultative forum.

The law outlines a governance system which incorporates

accountability structures and many of the participatory

practices that made PNPM successful. The following

three administrative bodies will be accountable for

the preparation and implementation of the RPJM Desa:

i Village Head — responsible for administrating

village business and regulations, and ensuring RPJM

Desa implementation.

ii Village Council — responsible for reviewing and

recommending village regulations and ensuring

consistency with the community’s aspirations, and

monitoring the performance of the Village Head.

iii Village Assembly — a consultative forum

responsible for deliberating on strategics interests

to the community, including village regulations and

RPJM planning as well as other matters related to

village governance.

The opportunities in terms of the development impact

the Village Law brings are significant, but it also brings

risk, particularly with regard to the capacity of local

governments and their systems and processes to

effectively use and manage a tremendous increase

in budget resources and to implement ambitious

development plans. Improving local government capacity

to fulfill their new responsibilities, ensure that all villagers

are included the development process, and have robust

management and fiduciary systems is critical and an area

where Government and development stakeholders are

working intensely to support.

THE NEW VILLAGE LAW

1 The full text of the Law in Indonesian can be found at: http://psflibrary.org/catalog/repository/UU%20Nomor%206%20Tahun%202014_Desa.pdf

PNPM SUPPORT FACILITYThe Government and development partners set up

the PSF to provide high–quality, coordinated technical

assistance, policy and planning advice and targeted

financial support to PNPM Mandiri. With the massive

scaling up of the PNPM Mandiri program to achieve

nationwide coverage, which started in 2007, one

of the PSF’s primary functions has been to support

the institutional and management capacity enhancements

of the Directorate General of Community and Village

Empowerment within the Ministry of Home Affairs and

the Directorate General of Human Settlements within

the Ministry of Public Works, the respective executing

agencies for PNPM Rural and PNPM Urban. Another major

role of the PSF is to foster innovation by: (i) testing new

approaches through special programs that might be yet

deemed risky to implement through standard budget

allocations; (ii) providing implementation support to

the Government to foster a sense of ownership and

to address existing weaknesses in the systems; and

(ii) conducting a robust program of analytical and

evaluation work to inform next generation policy and

operational issues.

MOVING FORWARD: PNPM AND BEYOND

CSO

GovernmentWB

2008

51%

43%

6%

2009

54%

38%

8%

2010

42%

50%

8%

2011

24%

72%

4%

2012 2013

20%

73%

7%

Geographic Expansion of Generasi & Green Projects

• Piloting of incentivized block grants for education & health starts (Generasi)

• Piloting of block grants for environmental conservation starts (Green)

Expansion of Generasi & Green continues • Launch of new window to reach marginalized

groups through CSO on-granting (Peduli)• Additional block grants disbursed for areas

affected by 2010 disasters (Disaster project)• Additional block grants for areas affected by

global crisis (Post-Crisis project)• Launch of project to strengthen the capacity and

sustainability of RLF operations• Significant impact on Generasi’s target outcomes

demonstrated

• South-South Knowledge Exchange on Community-Driven Development (CDD)

• Third iteration of the Local Level Institution Study

• New strategy framework for CSO on-granting for Peduli and DPOW

• Mainstreaming PNPM principles through the support to the implementation of the Village Law

• Strengthening the role and the capacity of PNPM facilitators

• Application of an integrated approach to the maternal and child health combining demand-side and supply-side activities

• Approval of new window to reach persons with disabilities (DPO Project)

• New early childhood education component under Generasi

• Support to PNPM Roadmap and PODES

• Assessment of Peduli’s pilot phase• Piloting of cultural methodologies to

improve participation

GREEN

78

1,509,169

GENERASI

369

4,800,000

POST-CRISIS

433

1,880,002

393

POST-DISASTER

648,970

91*

PEDULI

14,645

Beneficiaries

Area/Sub-district

2008 2009 2010

2011

2012

2013 2014

23%

64%

13%

* districts

Figure 3. Share of Committed Funding by Implementing Agency

Figure 2. New Strategies and Approaches Tested Under the PSF

Figure 1. Areas covered and total number of beneficiaries of special programs funded by the PSF

MOVING FORWARD: PNPM AND BEYOND | 11

The PSF serves as a forum to mobilize national and

international financial and intellectual resources to

achieve these goals. By the end of 2013, Australia,

the United States, the Netherlands, Millennium Challenge

Account–Indonesia (MCA–I), Denmark, the United

Kingdom, and the European Union (EU) had contributed

more than US$365 million to the PSF. These resources

have allowed the PSF to support the Government’s

leadership and management of PNPM and to deliver

significant development outcomes. Millions of men,

women and children have benefited from improved

access to infrastructure, services and employment thanks

to Government and NGO special programs funded

by the PSF since its opening in 2008. It also continued its

knowledge exchanges with countries in East and South

Asia, Africa, and Latin America and the Caribbean.

As the program has marked, the PSF has been utilized as

a platform for testing new strategies and innovations to

deepen and broaden PNPM’s core operational design.

Two examples are: using incentivized block grants to

help poor communities meet health and education

millennium develop goal (MDG) targets and on–granting

to Indonesian CSOs to reach marginalized groups. The

results of these experiments vary widely, from moderately

satisfactory to global best practice, but much is being

learned from both successes and disappointments.

Over the years, the PSF has benefited from partnership

fostered through engagement with a range of Indonesian

institutions, including core Government implementing

agencies, civil society organizations, universities

and research institutes, and national think tanks.

Implementation support of the operational portfolio

is undertaken jointly with implementing partners, with

shared review missions in the field. Evaluation work

is conducted in partnership with local social science

research institutions. Consequently, the share of PSF

resources implemented by national institutions has

steadily increased over the years, from 49 percent in

2008 to nearly 80 percent today.

FUTURE OF PNPM AND PSFIn recent years, both the policy environment of the PNPM

program and the role of the PSF as its support facility have

undergone significant changes. PNPM is now at a critical

juncture. Half way through a ten year plan to integrate

PNPM into government systems, its first phase of national

scale–up and placement into the budget has been

achieved. In December 2013 Parliament passed a national

law on village development that effectively mainstreams

PNPM into government operations. The Government

currently spends about US$2 billion each year on PNPM,

benefiting close to 40 million Indonesians in more than

70,000 communities. The Village Law will necessarily

change the development landscape at the village level

and Government’s approach to community driven

development. Both risks and opportunities exist in

making sure that these decentralized resources and

the accompanying adoption of PNPM’s principles into

the law are realized in practice.

Exactly what PNPM will look like will not be determined

until the new government takes office in October 2014.

What Government has emphasized, through its Master

Plan for the Acceleration and Expansion of Poverty

Reduction (MP3KI) with its keys on social protection,

service delivery, and livelihoods, is that community

empowerment and PNPM principles and systems

will continue to play a major in the country’s poverty

reduction efforts. The passing of the Village law and

the recognition of the need for an intensified strategy

to improve frontline service delivery in Indonesia

for improved development outcomes, necessitate

a refocusing of substantive priorities and areas of support

for the PSF.

Government and donor partners extended the PSF until

2018 to help support these poverty reduction strategies

and strengthen Indonesian institutions responsibility

for executing them. For the PSF to be well prepared to

meet the evolving and rising needs of the Government,

the Joint Management Committee agreed that

a managing contractor would be hired to support

the PSF’s ability to respond to increasing demands. In

light of these positive developments, the PSF will align its

portfolio to support Government priorities on front line

service delivery and Village Law implementation, which

the next PSF Progress Report will cover.

12

How does the new Village Law support

the implementation of the PNPM Roadmap?

The fundamental principle of the PNPM program is

community participation in development initiatives.

The Village Law is based on the same principles and

has the same purpose of establishing a framework to

empower rural communities to participate fully and

to play a greater role in determining the issues that

affect them. It establishes a firm basis for this increased

participation by creating a framework that requires

the Government to support the process of empowerment

by providing the funds necessary to make it happen.

By creating a legal requirement for the Government

to provide financial resources to village communities,

it enables a transformation in which members of rural

communities cease to be the object of development

initiatives, but become the subjects. Thus, the PNPM

program and the Village Law are complementary, with

both supporting the achievement of the goals defined

by the PNPM Roadmap, which charts the future of

PNPM beyond 2014 and guides its integration with

local governments.

With the mainstreaming of block grants into regular

budget transfers through the implementation of

the Village Law, how will the PNPM Mandiri program

change? In the context of these changes, what will be

the role of PMD, the implementing agency of PNPM

Rural, and PSF?

Ensuring that rural communities develop the level of

maturity required so that the Village Law achieves its

stated aims will be the biggest challenge we face over

the next few years. The task of ensuring that these

communities develop that maturity will be the primary

tasks of both PMD and PSF in that period. One of

the biggest roles of these institutions will be to provide

training to build the capacities of communities so that

they are ready to take on their new responsibilities and to

develop the institutions that enable them to do that. That

process will take time. That’s why the delivery of funds

to village communities will be implemented in stages:

there is a need for a period of transition during which

a transfer of knowledge and a building of the capacities

TARMIZI A KARIMMSC, DIRECTOR–GENERAL, DIRECTORATE GENERAL FOR COMMUNITY AND VILLAGE EMPOWERMENT (PMD), MINISTRY OF HOME AFFAIRS

“The PNPM Program and the Village Law are

complementary”

13

of village officials will take place. During this period,

it won’t be possible to close the PNPM program or cease

the provision of block grants through the program,

because the village governments won’t yet be ready to

fill the gap. The role of PMD and PSF will be to facilitate

the process of learning at the village level. Their role will

be to serve as instruments to build rural communities’

capacities and to create and develop the necessary

institutions to ensure that communities’ efforts to facilitate

their own development can be sustained.

The provision of facilitation has been a key feature of

the PNPM Mandiri program. With the implementation

of the new law, how will the role of facilitators evolve?

The most impressive achievement of the PNPM program

has been that it has been able to build the capacities of

village communities so that they are able to formulate

an Integrated Medium–Term Village Plan (RPJM–Desa)

that guide all village–level development initiatives. And

that has been achieved through a process of learning

that has been enabled by facilitators under the PNPM

program. This intense process of facilitation has been

the defining characteristic and the driving force for

the success of the PNPM program. With the enactment

of the law, the role of the facilitators will become even

more vital, with an increase in the scope of their tasks

and responsibilities. Until now, facilitators have had to

work with communities to fulfill their aspirations through

the PNPM program. In the context of the substantially

increased financial resources granted by the Village

Law, they will be required to facilitate the transfer of

knowledge that is required to make the implementation

of the Law a success. Now that they had to make

sure all the programs, actions and projects supported

by the Village Law work, the role of the facilitators will

increase dramatically.

With the provision of greatly increased financial

resources to the villages, what challenges does

the law create in terms of supervision and oversight?

How will the risk of corruption and the misuse of

funds be managed?

There are two powerful means through which supervision

and oversight will be exercised to ensure the appropriate

use of these financial resources. The first is the community

itself, which will oversee the formulation of the RPJM–Desa

through its participation, as a framework for all activities,

programs and initiatives that will be funded by the district.

The second are central level institutions, who will

exercise the same kind of controls that have been built

into the PNPM program. The strength of these controls

has been demonstrated by evaluations and studies that

show a very low level of misuse of funds within the PNPM

program. The measures developed through PNPM and

then expanded through the Village Law relate not just to

the supervision and oversight of financial transactions,

but to the development of the capacities and attitudes of

all actors to ensure accountable leadership at the village

level. The greatest innovation of the PNPM program

and the Village Law has been and will continue to be to

facilitate the development of this accountable leadership

and to change the mindset of the community so that

it insists on this accountability. It involves educating

the community so that they reject corruption. That has

been the main achievement of the PNPM program more

than any technical innovation, but the process must

continue and be intensified to make sure the Village

Law succeeds.

Is there any final message you would like to add

regarding the Law for the readers of the PSF

Progress Report?

In the final analysis, the basis for the law is mutual trust

between the different elements of society. On the one

hand, the Government must trust that communities will

receive and respond to the law well, that they will be able

to develop the capacities required to implement it. But

at the same time, the community must also have trust in

its own abilities, in the local and national level institutions

that represent them, and in the agencies that serve them

and enable them to meet their basic needs. That trust

cannot be given blindly, it must be built on a solid basis.

The Village Law provides a basis for the building of this

trust, but it must be strengthened through an ongoing

dialogue between all elements in society. The enactment

of the Village Law isn’t the end of this process, it just

creates a strong basis to take the process further.

14

What are the main characteristics of the urbanization

process and urban poverty in Indonesia?

There are both push and pull factors driving

the urbanization process in Indonesia. The agricultural

sector in this country is not growing fast enough to

provide good livelihoods to the growing population,

while the growth of trade, industry and the services

sectors, the activities of which is centered in the cities

and urban areas. Create job opportunities. These factors

propel migration from the rural areas to the urban areas.

As a result, both the size of the urban areas and their

population is growing rapidly. However, since this rapid

growth has not been accompanied by a corresponding

rate of increase in the development of well planned

residential and business areas with good services,

urbanization often results in the creation and increase

of slum districts. The urban poor are a much more

heterogeneous group than the poor in rural areas as

they have migrated from the rural areas with diverse

cultural and economic backgrounds. Unfortunately, many

of the migrants do not have the levels of educational

attainment or skills sets that are needed to secure good

jobs in the expanding, capital intensive sectors, and end

up working or trading in the informal sector, which is

relatively elastic and thus capable of absorbing those who

can’t find jobs in the formal sector.

What are the Indonesian Government’s policy

priorities for its urban poverty reduction strategy?

The mission of the Directorate General of Human

Settlements is to improve the development of

infrastructure in urban and rural settlements, including

water and sanitation infrastructure. Since the launch

of Urban Poverty Project (Proyek Penanggulangan

Kemiskinan di Perkotaan, P2KP) in 1999 and its integration

with PNPM Urban in 2007, these programs have been

significant tools for the achievement of this mission. In

2014, the main priority will be to achieve higher levels of

synergy between spatial and community development.

What changes can be expected to the PNPM Urban

program over the next few years?

Over the next few years, the PNPM Urban program will

ADJAR PRAYUDIDIRECTOR OF BUILDING AND NEIGHBORHOOD DEVELOPMENT, DIRECTORATE GENERAL OF HUMAN SETTLEMENTS (DGHS), MINISTRY OF PUBLIC WORKS

“Urban poverty is very different from rural poverty”

15

become more focused on the development of the poorest

urban areas through an expansion and intensification

of a community–based environmental management

approach. To achieve this, PNPM Urban will work to

intensify synergistic cooperation with local governments

to facilitate community development as a means to

develop specific potential in urban areas. In particular,

PNPM Urban will apply a comprehensive sustainable

livelihoods approach to urban areas by creating synergies

between natural, financial, social and human resources

and by benefiting the poorest members of society.

How can PNPM Urban be leveraged to facilitate

comprehensive slum upgrading programs? And to

address the social and economic needs of the poorest

members of society?

While the upgrading of slum areas is the responsibility

of local governments, the PNPM Urban program can

provide support to local governments that prioritize

slum upgrading. One channel of support is through

the PLP–BK program, which supports community and

local government initiatives in slum areas in a sustainable,

independent manner. In terms of addressing the needs

of the poorest members of society, one of their greatest

needs is better access to employment and business

opportunities. PNPM Urban is piloting a number of

approaches to meet these needs such as cash–for–work

programs related to reconstruction efforts in West

Sumatra, Yogyakarta, and Central Java. While it is true that

the greatest proportion of funds channeled through PNPM

Urban are utilized for developing infrastructure rather

than for promoting economic activities, it is important to

remember that this is not because the program dictates

this. Rather, it is the reflection of community preferences,

as expressed through the proposals made by communities

and their prioritization of these proposals. To better meet

the needs of the community for social and economic

development, greater efforts will be made to encourage

the community to access channeling and partnership

programs with a number of development partners,

including local government agencies, civil society

organizations, and micro–finance institutions.

Is there any specific message you would like to convey

to the PSF and the readers of its Progress Report?

The characteristics of urban poverty are very different

from those of rural poverty. Consequently, the approaches

that must be taken to addressing poverty in the urban

areas must be different from those that apply in the rural

areas. In the past, much of the work of the PSF has

focused on addressing poverty in the rural areas. While of

course that is important, I urge the PSF to remain aware

not only that urban poverty just as significant, but that

its significance is increasing and will continue to do so

over time. To ensure that the PSF makes a contribution

to improving the socio–economic conditions of all

Indonesians, including the growing number of the urban

poor, I urge the PSF to allocate the commensurate

resources to addressing the needs of these people. To

achieve this, among other measures, the PSF should

ensure that it includes among its staff, consultants and

senior managers a greater number of individuals with

a high level of experience with and knowledge of urban

development, urbanization and urban poverty. With

the rapid pace of urbanization, the shape of poverty in

Indonesia is changing. As an institution, the PSF must

evolve to meet these changes and intensify its measures

to address the new and different challenges that

are emerging.

INDONESIA’S National Program for Community

Empowerment (PNPM Mandiri) is the world’s largest

community–driven development program. It is

the flagship program under Cluster 2 of the Government’s

four–cluster poverty reduction strategy2 and addresses

poverty by empowering communities who are given

control over decision–making and management of their

development needs with direct financial and technical

support to improve basic infrastructure and access

to services.

In 2007, the Government demonstrated its commitment

to community–led development by scaling up

the Kecamatan Development Project (KDP) and

launching PNPM Rural as part of its initiatives to mitigate

the potential effects of the global financial crisis. Less

than a year later, it reiterated this commitment by scaling

up the Urban Poverty Project (UPP) to start PNPM Urban.

Together with two smaller but aligned community–driven

development programs,3 PNPM has grown to cover all

rural villages and urban wards in Indonesia.

PNPM MANDIRI

2 Cluster 1 focuses on social protection through targeted poverty and social protection programs at the household level; Cluster 2 promotes community level development and empowerment; Cluster 3 supports small and medium enterprises, and micro–finance. The recently added Cluster 4 supports the provision of inexpensive housing, public transportation, clean water and electricity.

3 Two other core programs aside from PNPM Rural and Urban are: Rural Infrastructure Support to PNPM Mandiri (RIS–PNPM); and Regional Infrastructure for Social and Economic Development Project (RISE).

CORE PROGRAMS

PNPM disburses more than US$2 billion annually to

fund development sub–projects and activities chosen

and managed by communities to improve their lives. By

focusing primarily on the process by which communities

are empowered through their engagement with local

development projects rather than on what gets built

or produced, PNPM marks a sharp departure from

the traditional ways in which large development projects

are conceived and carried out. Evaluations show that

through PNPM programs, members of the community

eat more, go to school longer, find jobs and establish

businesses, have access to health care and participate in

community and local political forums.

PNPM Mandiri is the world’s largest community–driven development program. In 2013, it covered 33 provinces, 495 districts, 6,752 sub–districts.

18 | 2013 PSF PROGRESS REPORT

205,426135,811

Infrastructure builtor rehabilitated

kmof roads built

45 Millionbene�ciaries

2,447

34,405

4,371

57,266

4,791

61,000

5,020

63,000

5,100

63,163

5,146

49,000

number ofsub-districts

number ofvillages

2008 2009 2010 2011 20132012

PROJECT RATIONALE AND OVERVIEWPNPM Rural is the Government’s flagship poverty

reduction and community empowerment program

and a key element of its four–clustered strategy to

reduce poverty to 8–10 percent in 2014. The Program

empowers communities by giving them control over

the management of their development needs and over

decision–making processes related to meeting these

needs. The program aims to achieve this by providing

direct financial and technical support to communities

to improve basic infrastructure and to ensure access to

services. The program has three main components: (i)

block grants (for investment in physical infrastructure

and to facilitate revolving loan funds); (ii) community

empowerment and facilitation; and (iii) implementation

support and technical assistance. It provides block grants

directly and transparently to communities to finance

poverty alleviation activities selected from an open menu

and identified through a gender–inclusive community

participatory planning process. The Program also aims

to enhance the capacity of the national and local

governments to partner with community organizations to

improve the delivery of basic services.

Since its launch in 2007, PNPM Rural has expanded rapidly

to become a nationwide program, with the value of its

annual budget reaching Rp 9.5 trillion (US$0.93 billion)

in 2013. To date, more than 85,000 sub–projects

have been implemented in 5,146 Sub–districts. The

majority of the sub–projects implemented have mainly

focused on the development of infrastructures. In

2013 alone, block grants were used for building rural

roads (13,500 kilometers built) and clean water systems

Figure 4. Achievements under PNPM Rural

Summary Information

Status Task Team Leaders Implementing Agency

Active Sonya Woo (swoo1@worldbank.org)

Directorate of Community Institution and Training, Directorate General of Community and Village Empowerment (PMD), Ministry of Home Affairs

Start Date to Closing Date Geographic Coverage

20 May to 31 December 2015 49,000 villages/5,146 sub–districts/392 districts (in 2013)

PNPM MANDIRI: CORE PROGRAMS

PNPM RURAL

PNPM RURAL | 19

205,426135,811

Infrastructure builtor rehabilitated

kmof roads built

45 Millionbene�ciaries

2,447

34,405

4,371

57,266

4,791

61,000

5,020

63,000

5,100

63,163

5,146

49,000

number ofsub-districts

number ofvillages

2008 2009 2010 2011 20132012

(8,500 units); constructing and rehabilitating schools

(5,500 units) and constructing bridges (over 2,000 units),

among other infrastructure activities.

The average block grants provided to each

participating sub–district range in value from Rp

600 million to Rp 3 billion (approximately US$58,824 to

US$294,118).4 Funds provided to communities are used to

finance the construction of socio–economic infrastructure,

revolving loan funds (RLFs) for women groups, community

training and community–level response to disaster

and emergencies. To ensure effective, participatory

planning and to guarantee projects’ technical quality,

the program deploys a network of 14,000 facilitators.

These facilitators, who are hired by the Government’s,

play a critical role in ensuring the active participation of

all community members in the development process.

By facilitating the processes by which villagers prioritize

their development needs and by building communities’

capacities in areas related to procurement and financial

management, facilitators contribute to maintaining

a high level of accountability and a high quality of

technical implementation.

Peer–reviewed quantitative assessments of PNPM Rural

have consistently demonstrated that the program

makes a significant contribution to the achievement

of the GOI’s poverty reduction goals. Specifically, these

assessments show that: (i) the poorest members of rural

communities receive the greatest benefits from the program,

with the two lowest quintiles of the participating

population receiving the largest share of project benefits;

(ii) the program results in significantly increased levels of

consumption, with household expenditures among

the poor increasing by an average of 11 percent; (iii)

benefits are sustained, with 85 percent of infrastructure

built through PNPM/KDP in good to very good condition

five years after its completion; (iv) benefits are shared,

with PNPM Rural generating more than 20 million days

of paid employment, with labor composition in PNPM

programs averaging 40–70 percent, and with PNPM’s focus

on financing public projects ensuring that they benefit

a broad range of poor people; and (v) investments are cost

efficient, with infrastructure built through the program

30–50 percent cheaper than similar infrastructure built

through existing, traditional government systems.

PROGRESS IN 2013 Overall, the program demonstrated good progress

towards meeting its main output targets in 2013.

The total value of block grants disbursed was Rp

Figure 5. Number of sub–districts and villages covered since 2008

4 Block grant allocation depends on a sub–district’s population, poverty incidence, and remoteness.

20 | 2013 PSF PROGRESS REPORT

at the district/sub–districts levels (from 11% to 4%); (iii)

adjustments made to the remuneration and allowances

for Facilitators and Provincial Consultants, which are now

closer in alignment with market needs; and (iv) progress in

resolving pending fraud and corruption cases. However,

several key challenges also persist and affect the Program’s

implementation continuity and impact. They include: (i)

the need to further strengthen the Program’s Pre–Service,

In–Service and Refresher Training for Facilitators and

provision of more regular and timely training to ensure

their continued development and capacity to handle

key areas of risk to the Program (documentation of

the land donation process, mediation of community

disputes, inclusion of marginalized groups etc.,) and to

avoid a further escalation of these issues; (ii) the slow

processing of DIPA8 revisions; and (iii) while some progress

has been made to resolve pending fraud and corruption

cases, there has been an escalation of larger fraud and

corruption cases and slow progress in the investigation

and litigation process. The Program will need to find ways

to more address these issues in 2014.

FUTURE PLANSIn 2014, the PNPM Support Facility (PSF) will continue

to support the implementation of the PNPM Roadmap,

which charts the program’s future beyond 2014 and

guides the program’s integration with local governments.

PNPM 2012–2015 will support a higher level of integration

8.4 trillion (approximately US$824 million),5 of which

about 98 percent has been disbursed.6 The national

rate of completion for 2013 sub–projects was

95 percent.7 Some sub–projects that were identified in

the village development plans were not fully completed

basically for two reasons: (i) sanctions were imposed

on a few sub–districts with high non–performing loans

(NPL) and they were no longer allowed to access new

block grants; and (ii) ensuring implementation continuity

remains a challenge in Mentawai, the Papua region and

other remote areas mainly due to problems associated

with the recruitment of Provincial Specialists and

limited transportation infrastructure. For instance, while

nation–wide, only 4 percent of infrastructure sub–projects

fail, in Papua the rate is 8 percent; and while Technical

Evaluations show that the quality of sub–projects are

generally high (75%), only 45 percent of sub–projects in

Papua was rated as highly utilized and functional.

Key achievements in 2013 include: (i) the revision and

approval of the Technical Operations Manual, which

had not been revised since 2010; (ii) demonstrated

improvements in filling Facilitator vacancies

Type of sub–projectKDP

(1998–2007)PNPM Rural

(2008–2012)PNPM Rural

in 2013

km of farm/rural roads built 40,371 81,897 13,543

# bridges built 9,049 7,212 2,248

# irrigation systems built 11,062 19,127 104

# clean water systems built 10,451 9,826 8,547

# public toilets and washing facilities built 4,822 4,567 3,374

# village electricity units built 842 2,128 379

# market units built or rehabilitated 1,164 1,275 677

# school buildings built or rehabilitated 6,732 30,778 5,465

# education activities supported 5,041 12,667 2,224

# scholarship beneficiaries 118,796 209,290 20,161

# health facilities built or rehabilitated 3,865 7,889 2,338

# health activities supported 1,037 7,088 498

# other infrastructure built 23,162 25,544 2,799

# revolving loan fund activities supported 68,737 127,911 27,316

Table 1. KDP/PNPM Rural Outputs (1998–2013)

5 Conversion from Rp to US$ is based on the rate used by the Government for Fiscal Year 2013: US$1 = Rp 10,200.

6 Data provided by national Management Consultant (NMC) (Protak).7 Data provided by NMC (Protan).8 Daftar Isian Pelaksanaan Anggaran (Budget–Funded Project

Proposal Lists)

PNPM Mandiri has support the community to have better access to basic infrastrukture, markets, health–care, educational and health facilities, and clean water.

22 | 2013 PSF PROGRESS REPORT

of development initiatives at the local level under

the ‘one village, one plan, one budget’ concept. PNPM

2012–2015 also plans to mainstream practices of good

governance and downward accountability developed

under the program into local government policies and

practices. PSF’s range of analytical studies and large–scale

operational pilots will also continue to provide significant

input into the development of PNPM after 2014. A number

of these initiatives will be further developed under

the current PNPM program, including the following:

Improving the social safety net: Since 2011, the PSF

has been working with the Government’s Anti–Poverty

Commission and the World Bank Poverty Team to improve

the targeting of Government’s social assistance programs.

So far, the most significant action to achieve this goal

has been the unification of targeting systems. In 2014,

continuous efforts will be made to address the recognized

risk of a unified targeting database resulting in

the exclusion of unregistered vulnerable families. Work is

being conducted to test new ways to utilize community

facilitators and community identification processes to

verify the database; to provide poor households who

are not registered with a means of seeking redress; and

to improve safety net targeting for the vulnerable more

generally.

PNPM as a platform for service delivery: The PNPM

Roadmap defines a vision in which PNPM serves as

an operational platform for the accountable delivery

of a range of services to communities and in which

the program addresses the varied causes of poverty

throughout Indonesia, including limited access to quality

health and education services, embedded patterns of

marginalization and exclusion, environmental degradation,

and shocks affecting communities and vulnerable

households. PNPM 2012–2015 will contribute to

the achievement of this goal in a number of ways. PNPM

2012–2015 will increase investments in the training and

empowerment of communities, with processes involving

not just facilitators, but village institutions and community

cadres. The next phase of PNPM Generasi will scale–up

a model to improve health and education services.

In implementing PNPM Mandiri, the community has an independent and collective authority in deciding and managing development activities.

PNPM RURAL | 23

Livelihoods: Stakeholders identified PNPM’s

community–driven development (CDD)

platform as a valuable vehicle for household and

community economic empowerment, in line with

the strategy articulated in the Government’s Master

Plan for the Acceleration and Expansion of Poverty

Reduction (MP3KI) and PNPM Roadmap. While

the RLF subcomponent of the PNPM Rural block grant

has enabled women to access low cost credit for income

generating activities in PNPM communities, such access

has been relatively narrow in outreach. Stakeholders have

therefore been reviewing local and global experiences in

order to develop a strategy for more inclusive livelihoods

development opportunities under PNPM Rural, particularly

for poorer households. The goal is to test a more holistic

framework for livelihoods improvement, building on an

adjusted PNPM design, which enables poor households

to better organize, participate and access financial

services, technical assistance and jobs. Based on these

lessons, additional activities are being considered for

implementation under the Rural Program including

the training for active revolving fund beneficiary (SPP)

Groups and the strengthening the RLF management

of activity management units (Unit Pengelola

Kegitatan, UPKs).

In addition, as part of the effort to design an initial

livelihoods pilot, a series of review workshops were held,

with participation from a number of projects and NGOs

to review local lessons and experience. A delegation

of PNPM/GOI stakeholders also participated in a study

tour and exposure visit to successful community–driven

livelihoods programs in Nepal and India in September

2013. A small dedicated team has since been advising

a working group led by Bappenas on a pilot design that

will be tested in 2014. The team has also led the design

of an umbrella Monitoring, Learning and Evaluation

framework for PNPM livelihoods pilots in both rural

and urban locations, with a view to learn from pilot

implementation experience and to inform evidence

based decision making on options for scale up and future

design adjustments.

PNPM Mandiri Rural reaches the frontier areas of Indonesia. In Tabukan Tengah, the community built water supply facilities to fulfil their daily needs of clean water.

24 | 2013 PSF PROGRESS REPORT

Village Law: The Government had taken a good

lesson from the implementation of PNPM Rural to

reinforce community empowerment at the village level

by implementing the Village Law (Undang–Undang

6 Tahun 2014 Tentang Desa). By enshrining CDD

principles into Indonesian legislation, the Law also paves

the next step for the institutionalization of PNPM. With

the direct transfer of development budget to the village,

communities will assume greater responsibility and

control over village affairs, and be able to meet more

of their own development needs. A number of key

actions will need to be taken in 2014 to ensure that

the transition of the PNPM to the Village Law is managed

well, including the socialization of the new law among

all key stakeholders and associated regulations as well

as adjustments that may be made to the PNPM Rural

2012–2015 in terms of training and other activities to be

undertaken by Directorate General of Community and

Village Empowerment (PMD) and PNPM stakeholders in

support of the transition.

LESSONS LEARNED Limited spill–over outside of the program: A

Community Groups Study (See Annex Three for further

details), funded by the National Team for the Acceleration

of Poverty Reduction (TNP2K) and managed by the PSF,

found that the groups set up by PNPM performed well

in the project. However, the spill–over effect outside of

the project, in terms of the application of principles and

processes introduced by PNPM, were limited as other

projects as well as village governments have different

rules/requirements. There is no incentive to follow

PNPM principles. In addition, facilitation by the project

and experiences obtained by the villagers during their

involvement in PNPM have not raised collective demands

for better governance from their villages/communities.

One of the institution, Inter–village Coordination

Body (Badan Kerjasama Antar Desa, BKAD), which was

originally expected to design the cooperation strategy

between villages have not functioned properly for

non–PNPM practices.

RLF good practices: Despite ongoing systemic issues

around RLF, years of experiences have seen significant

improvements in its management. Measures to strengthen

internal controls and oversight that led to innovative

practices by SPP groups merit replication and expansion.

These include: (i) promoting wider awareness of sanctions,

which would be imposed on groups with low repayment

rates (less than 80%) and upon discovery of significant

fraud/corruption cases; (ii) more rigorous verification

of SPP groups from the outset and active monitoring

of problem groups; (iii) group installment payments

being made directly into the UPK bank account; and

(iv) group “insurance” funds with contributions from all

active borrowers to cover any member unable to pay her

installment, thereby providing an additional safety net for

all members.

Gender Empowerment: From the outset, gender

empowerment has been an essential part of the PNPM

Rural program that is designed to closely monitor

women’s participation in decision making and

sub–project implementation and to promote women’s

economic empowerment through the RLF component

of the program. In addition to well–known factor such as

funds and capacity, field findings underline the need for

a closer analysis of other pre–existing contextual factors,

which form the foundation of the process. These include

women’s control of their time, the value and visibility of

their skills, labor or other contributions, asset ownership

and finally, bargaining power. Other factors also turn

out to be closely tied to these, for example, the ability

to continue in paid employment after marriage and

the ability to work in locations beyond the marital family’s

comfort zone. These in–depth understandings of factors

influencing women’s empowerment and participation

indicate that additional training and the development

of specific strategies are needed for women to address

or overcome some of the existing obstacles and thereby

to achieve more sustainable gender outcomes in

the Program.

PNPM Mandiri encourages the community to be actively involved in infrastructure development and improvement such as building roads, bridges, water and sanitation facilities and irrigation.

26 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWThe development objective of PNPM Urban is to

ensure that the urban poor benefit from improved

socio–economic and local governance conditions.

This objective is achieved through: (i) forming and

institutionalizing elected representative organizations that

are accountable to communities; (ii) directly providing

grants to communities to transparently finance poverty

reduction activities, especially infrastructure services; (iii)

enhancing the capacity of central and local governments

to partner with community organizations in service

provision; and (iv) increasing the awareness of disaster risk

mitigation and mainstreaming the measures for resilience.

The Urban Poverty Project (UPP), the predecessor to

the PNPM Urban program, began in 1999 as a menas to

respond to the economic collapse at the time by rapidly

transferring resources directly to the poor in urban

communities. In August 2006, the Government took

the decision to scale up UPP to institutionalize its proven

track record of bottom–up, participatory planning into

a single community–driven poverty reduction program

at the national scale. Reflecting the Government’s desire,

PNPM Urban was implemented in 2008. Since then,

the program’s coverage has extended to 11,000 wards in

urban areas, reaching 23.7 million beneficiaries. The total

value of funding for the PNPM Urban program since its

inception until 2012 reaches approximately US$1 billion.

The program is funded through the Indonesian

Government’s own funds, and through loans provided

by the World Bank and the Islamic Development Bank.

The project consists of four main components: (i) Capacity

Building for Communities and Local Governments: This

component involves community capacity building

training and workshops and facilitation of Community

Organizations (Badan Keswadayaan Masyarakat, BKM)

Summary Information

Status Task Team Leaders Implementing Agency

Active George Soraya (gsoraya@worldbank.org)

Directorate of Building and Neighborhood Development, Directorate General of Human Settlements (DGHS), Ministry of Public Works

Start Date to Closing Date Geographic Coverage

20 May 2008 to 31 December 2015

National: 10,924 urban wards in 268 cities/districts (in 2013)

PNPM MANDIRI: CORE PROGRAMS

PNPM URBAN

Figure 6. Achievements under UPP and PNPM Urban (1999–2013)

34,627 km of smallroads built

258,202solid waste units andsanitation facilities built

13,499health facilitiesbuilt

23.7 Million

18,347 km of drainagebuilt

177,990houses rehabilitatedfor the poorest

bene�ciaries

PNPM URBAN | 27

have been used to finance infrastructure (79 percent);

for RLFs (9 percent of kelurahan grants) and for social

activities (12 percent).

Community organization: The project performed well

in terms of facilitating the organization of communities

to build democratically–elected and representative

community institutions (BKM) and to develop ratified

Community Development Plans (PJM Pronangkis) through

a participatory, pluralistic process. Demonstrating the high

level of commitment of local governments, the realization

of cost–sharing from these governments was 94 percent

in 2013.

Neighborhood Development program: This slum

upgrading scheme, which was intended to meet

the needs of the poorest communities in poor settlements

by promoting more integrated social, economic,

infrastructure, and spatial planning, achieved its targets

for 2013. By the end of 2013, the total value of disbursed

grants under this program amounted to approximately Rp

374.1billion (83 percent of the allocated funds), with grants

provided to 452 participating kelurahans. The majority

of these grants were utilized for village roads (213 km),

drainage (83 km), and housing rehabilitation (723 units).

Through the program, approximately 31,000 community

volunteers were deployed, of whom 32.7 percent were

women. For this program, the participation rate of

women and the poorest, most vulnerable members

of the community, met or exceeded defined targets.

However, the program continues to face challenges

in terms of improving the targeting of the locations of

settlements for the poor; the quality of plans developed

and revolving loan funds (RLFs) unit staff; (ii) Kelurahan

Grants: Under this component, grants are provided to

participating kelurahan to co–finance sub–projects

identified through community development plans;

(iii) Implementation Support and Technical Assistance:

This component provides capacity–building activities

for the staff of Program Management Unit (PMU) and

other groups and supports monitoring and evaluation;

(iv) Contingency for Disaster Response: This component

finances preparedness and rapid response measures to

address disaster, emergency and/or catastrophic events,

as needed, by way of the rapid reallocation of loan

funds in the event of emergencies.

In addition, a number of special programs are or have

been implemented under PNPM Urban, including

the Neighborhood Development (ND) program. ND

improves living conditions of the poor by promoting

urban upgrading. This specialized program uses an

approach that is programmatic (three year plan),

integrative (a package of investments, such as

housing, drainage and roads), and spatial (using

evidence–based urban planning expertise). The

program significantly increased the size of ward grants,

to up to US$111,000 per ward, for neighborhood–level

interventions that target the poorest areas. ND grants

are matched by at least the same amount of funds from

the participating local governments.

PROGRESS IN 2013In 2013, PNPM Urban continued to make good progress

towards achieving its development objective. Grants

34,627 km of smallroads built

258,202solid waste units andsanitation facilities built

13,499health facilitiesbuilt

23.7 Million

18,347 km of drainagebuilt

177,990houses rehabilitatedfor the poorest

bene�ciaries

28 | 2013 PSF PROGRESS REPORT

by communities (including spatial plans, management

plans and investment plans); and the provision of

benefits to the poor. Other areas that require ongoing

attention are improvements to the level of collaboration

between communities and local governments and other

stakeholders at the city level. This will be achieved through

intensified discussions and the provision of technical

assistance from Local Government Task Forces (Satuan

Kerja Perangkat Daerah, or SPKD) to the communities. The

selection of additional ND locations in metropolitan and

large cities for 2013 has been delayed because the process

of selecting and verifying locations took much longer than

expected. The finalization of this process will be the top

priority in 2014.

Complaints Handling System: PNPM has established

a complaints–handling system (CHS) to enable citizens

to submit complaints or inquiries to the PMU by phone,

SMS, email or regular mail, or directly to facilitators or

local government officials. From mid–2003 to October

2013, PNPM Urban’s Management Information System

(MIS) received around 122,000 complaints and inquiries

and facilitated the resolution of approximately 95 percent

of complaints received in 2013. These complaints were

classified according to the following categories: (i) project

mechanism and procedures; (ii) misuse of funds; (iii)

negative interventions; (iv) change of policy; (v) violations

of ethical codes; (vi) force majeure, and (vii) others. Despite

progress in educating citizens regarding their rights, it is

likely that the actual number of cases is underreported.

To address this, measures to improve the level of

understanding and awareness of communities regarding

complaints handling mechanisms will continue, together

with efforts to improve the capacities of consultants and

facilitators to resolve cases.

FUTURE PLANSIn 2014, the program will focus on addressing

challenges in the areas of project management;

project implementation quality control; operations and

maintenance of infrastructure; the effectiveness of social

programs; the level of collaboration between BKM, local

governments and other stakeholders; and implementing

Revolving Loan Funds.

Project management: Measures will be taken to improve

the performance of national management consultants

and regional consultants in the areas of providing

guidance and carrying out capacity building, monitoring,

and spot–checks in the fields. The implementing agency

will improve the MIS to ensure that it is easy to use

and effective in enabling PMU and local government

stakeholders to monitor the progress and performance

of the program. In addition, collaboration between

BKM, local governments and other stakeholders will be

strengthened to ensure the sustainability of the program.

Capacity–building of facilitators and communities:

The project will improve training and socialization

materials for facilitators and communities as a means to

improve the effectiveness of community facilitation and to

strengthen the supervision of project implementation. The

capacity–building materials will be designed to enhance

the quality of project implementation, with particular

attention to the formation of BKM and related institutions,

the operation and management of infrastructure, and

collaborations between BKM, local governments and

other stakeholders.

Neighborhood Development (ND) program: ND

locations in metropolitan and large cities will be proposed

by local governments who are committed to supporting

the program. The selection process will prioritize high

population density communities with a higher rate of

poverty, particularly those in disaster–prone areas. To

ensure better targeting, the guidelines and training

materials will be adjusted, according to the characteristics

of current ND locations in both metropolitan and

large cities.

Livelihoods pilot project: The livelihoods pilot will be

implemented in 2014 in selected cities and districts, with

an aim to empower the poorest members of communities

by strengthening the process of group formation and

improving their capacities to save, access financial

resources, and engage in entrepreneurial activities.

Guidelines, training materials, and project implementation

arrangements will be completed by February 2014.

Following this, by the end of March 2014, communities

and facilitators will be mobilized and provided

with training.

Improvements to governments and complaint

handling: In order to enable community members to

provide feedback and be aware of their right to do so,

facilitators will ensure that communities have a good

understanding of complaint handling mechanisms.

Measures to achieve this include displaying the SMS

complaint number on all information boards, socialization

and trainings of community members. In addition, by June

2014, the current CHS will be upgraded to a real–time,

traceable MIS.

PNPM URBAN | 29

Implementation of PNPM for 2015: There has been an

on–going discussion within the Parliament on the need to

disburse all external funding for PNPM by December 2014.

This raises a serious risk whereby proper accountability for

community grants disbursed at the end of 2014 may be

undermined by a lack of facilitation.

LESSONS LEARNEDIntensify collaboration with Local Governments in

the ND program: ND has involved local governments in

the planning and financing of activities. Consequently,

the level of awareness and support of local governments

for the ND program has continued to improve. However,

to ensure continuous support in terms of technical

assistance and financing, local governments must be

engaged from the beginning, starting with the selection

of ND locations. The proposed ND locations should match

with the priorities established by local governments, as

indicated in their medium–term plan and spatial planning

programs. This will allow local governments to facilitate

financing as well as technical assistance to the program in

a more sustainable manner.

Intensify facilitation for community groups to

strengthen social programs: While infrastructure

services are an important, highly valued component of

the program, there is also a strong demand for social

and economic programs that are intended to reach

the poorest of the poor, and are designed mainly to

benefit individuals. Currently only about 10 percent

of the program’s funds are utilized for this purpose,

mainly because of limited knowledge at the community

level of social program options. To address this, a new

approach to building a more effective social program

should be explored. One possible approach is to develop

a social program as part of a livelihoods program. This

will require the provision of more intensive facilitation

and capacity building by community facilitators to

the community groups.

PNPM Mandiri provides technical assistants for Program Management and Development such as provision of management consultant, quality control. evaluation and program development.

30 | 2013 PSF PROGRESS REPORT

Indonesia’s economy is growing and changing shape.

Rapid economic growth since the Asian Financial

Crisis has mostly been concentrated in the country’s

capital intensive sectors and in urban areas, particularly

Indonesia’s major cities. As a result, lured by the prospect

of jobs, migrants from the rural areas have been pouring

into these cities to find work or to engage in trade,

opportunities that often elude them in their home

villages. With this influx, the proportion of the population

living in urban areas has grown from around 15 percent

in 1950 to 49.8 percent in 2010 and is projected to be

53.5 percent in 2015.9

Particularly in Jakarta, the rapid growth of the cities has

resulted in sky rocketing land prices and rental costs,

the displacement of the residents of inner urban areas

to the peripheries, a dramatic increase in the number of

people squatting by river banks, railway lines, roads and

the ever diminishing patches of vacant public and private

land. Minimum wage workers often spend more than

a third of their income to rent a single, poorly serviced

room. Often, they stay in the satellite cities or bedroom

suburbs around the capital. This means that they have to

spend a large chunk of their income to commute daily to

their place of work, a trip that can take up several hours

each way. The poorest residents often live in sprawling

kampung, with poor land security and limited access to

the most basic facilities, including clean water, electricity,

sewerage, and properly functioning toilets.

One of the issues facing the PNPM Urban program

is the difficulty of getting people in urban areas to

participate. In a poor kampung in Central Jakarta,

however, a PNPM facilitator and an elected community

representative on the residents’ shared background and

common concerns, building restored community bathing,

washing and toilet facilities.

The community in RW (Rukun Warga) 08 in Harapan Mulia,

Kemayoran, is subject to issues that face many other poor

urban residents. As Gatot Siswanto or the “Pak RW”, an

elected community representative says:

RW08 is one of the poorest RW in the Sinar Harapan

ward. Houses are small, sometimes just nine square

meters. Some people own their own houses, others

A BASIS FOR PARTICIPATION: SOCIAL CAPITAL IN A POOR KAMPUNG IN JAKARTA

9 http://www.bps.go.id/eng/tab_sub/view.php?kat=1&tabel=1&daftar=1&id_subyek=12&notab=14

Members of the community in RW 08 in Harapan Mulia, standing in front of the newly constructed toilet block.

PNPM URBAN | 31

rent a room. There’s electricity from a cable from

a house on the main road, but it’s low capacity, so

it often goes off. Only one or two houses have running

water or toilets. Instead, people use the community

facilities. The public toilets and washing troughs are in

poor shape. When it floods, the waste pours out onto

the paths. Sometimes people get driven out of their

houses by the stink. The floods also make it difficult to

get in and out.

As in many urban kampung, a large proportion of

the residents are newcomers. While urban kampung

are generally much more heterogeneous than those in

rural areas, newcomers often follow the path of friends

and relatives from the same place of origin, using these

relationships to find jobs and a place to stay in the city. As

Gatot Siswanto says:

More than half of the community has its roots in

Central Java. A lot of families come from Wonogiri

and Sukoharjo (districts near Solo). A lot of people

send money back to their family in the village. Most

of the newcomers to the RW have family who already

live here. They come to Jakarta because it’s easier

to make money here. A lot of people go back in

the holidays or when they get old and can’t work

anymore. It’s a tight knit community, with strong

bonds between neighbors.

Despite the cramped and unhealthy environment

in which people live, located in Central Jakarta,

the kampung’s location gives it some advantages over

those living on the peripheries of the city:

The RW is in central Jakarta, right next to markets,

shopping centers and offices. That creates a lot of

opportunities for the residents. Most people work as

small traders and food vendors, selling from carts or

stalls. They can sell to the workers in the shops and

offices. Other residents work as laborers. There’s only

a few who have regular jobs in offices or shops.

As one of the eight poorest RW in the ward, RW08 is

eligible to take part in the PNPM Urban program. Sasra

Bouty, a senior PNPM facilitator in Kemayoran, says that

one of the big problems with a community–driven

program such as PNPM Urban is the difficulty of getting

people in urban kampung to participate:

The first stage of implementing the PNPM Urban

program involves socialization. Initially, meetings are

held at the kelurahan (ward) office, with invitations

sent out to community leaders and the general

public. At these meetings, we explain the purpose

of the program and the way it works. Following that

we hold public meetings to determine whether

the community is prepared to participate. Before

participating in the program, the community has to

determine if they need it and if they are willing to take

part in it. The program requires their full involvement

and financial and other contributions, so ensuring

that they are fully committed to it is a vital part of

the process.

One of the biggest problems is getting people to

participate. It’s often difficult even to find time to hold

a discussion when people can attend. Facilitators and

volunteers have to be prepared to attend meetings

late at night or on the weekend. Even so, in the big

cities, people are often working late into the night

or they are too tired to attend community meetings

when they get home, so we need to be very flexible.

We have to be prepared to attend meetings late

at night, or on public holidays.

However, many of the residents of RW08 work as

informal traders and their peak trading hours are usually A woman from RW 08, preparing to set off to sell jamu on her bicycle.

32 | 2013 PSF PROGRESS REPORT

in the early mornings until lunch time. Outside those

hours, they can organize their time much more freely

than many employees in the formal sector. Often, they

can return home to rest for an hour or two in the heat

of the day — or attend meetings. Also, the fact that

a large proportion of the residents come from the same

villages, or at least the same districts, in rural Java, creates

a sense of community between them. Finally, by sharing

community facilities, such as the toilets and bathing

facilities, they have many common priorities and concerns.

All of these factors provided a strong basis for holding

meaningful, focused community discussions. As Gatot

Siswanto says:

Everyone agreed that if funds were available, there

were two main problems that needed fixing. First,

the footpaths in and out of the kampung often flood.

That makes it hard for the traders to get their carts in

and out. Second, the community washing, bathing

and toilet facilities were in a very bad state. The septic

tanks were also in a poor condition, which meant that

waste leaked into the surrounding areas. There one

community toilets and bathrooms in the RW, in three

separate locations. These serve more than 250 people.

The busiest time is in the early hours before dawn,

when the traders are getting ready to set off with

their carts. At that time, people line up with towels,

soap and toothbrushes to take their turn. In the end,

the community decided that repairs to the toilets

would cost less and benefit more people.

We decided to focus on the toilets in RT (Rukun

Tetangga) 03. The leaks there were the worst and

the place stank. Also, the toilets are built on a small

square, where people wait their turn. If they were

fixed, a lot of people could use them. The other

toilets are also in bad shape, but there’s no space

for people to wait. So, more people could benefit

by fixing the toilets in RT03. PNPM Urban provided

Rp 19 million. The community contributed another

Rp 3 million. We used the money to raise the floor

of the toilet, so the waste wouldn’t leak in the rainy

season. The toilets work properly. We talked about

charging a fee to use the facilities, to raise money

for maintenance and further restoration. In the end,

we decided to rely on voluntary contributions, with

people encouraged to leave money in the locked box

outside. We only collect Rp 200,000 per month, which

isn’t enough to cover maintenance, but we have

a roster to keep it clean and do simple repairs.

Darmini, a market trader, itinerant vendor, and housewife,

supports her family of four on Rp 1.5 million each month.

This is only slightly more than half the legal minimum

wage in the Jakarta region. However, because she has

strong relationships with people in RW08, she pays a very

low rent for her accommodation. Since she works in

the streets surrounding the neighborhood, her travel costs

are also very low. While she doesn’t have health or other

insurance, she has a strong family network that provides

support in times of crisis. In a city as heterogonous

as Jakarta, with its stark contrasts and widely varying

circumstances, it’s hard to say that she is a typical resident.

Even so, her story certainly is by no means unusual. She

talks about how she supports herself and her family,

the state of the community facilities, the impact of

the repairs, her involvement in the discussions that lead to

them, and her plans for the future in the following story:

A woman washing clothes at the communal washing facility in RW 08.

PNPM URBAN | 33

I come from Sukoharjo in Central Java. I work as a vendor,

selling cooking utensils from a stall in the market in

the mornings. Then, if I’ve still got the energy, I sell jamu

(herbal drinks) in the afternoon. I usually get up at three in

the morning, then I go to the market to start selling. I sell

equipment used by food vendors, who usually shop early,

so I can come home at about nine. When I get home, I

cook rice for my family before taking a rest. Later, I take my

bottles of jamu on my bike and peddle around the streets,

serving my regular clients until the late afternoon. Then

I come home to look after my family again. My husband

helps to prepare jamu for me to sell, and sometimes

engages in casual labor on building sites.

I’ve been living in this kampung for the past sixteen years,

together with my husband. My husband, my two children

and I live in these two rented rooms, each about three

by three meters. Years ago, my parents also lived in this

same neighborhood, so I know quite a few other people

including the owner of the house in the area. Because my

husband and I have a good relationship with him, the rent

is very cheap, only Rp 1.5 million per year. He knows that

we can’t afford much more than that. We don’t have our

own electricity account, but the whole neighborhood

shares a single connection. Each month, each household

contributes to the bill, according to the size of their house,

how many people live there, how much they can afford,

and how much they use. Last month, our share was Rp

115,000. We don’t have running water or a toilet in our

house, so we use the community facilities.

I went to the meetings to discuss building the new toilets.

With a few of the other women, I helped make the tea

and prepare snacks. I was quite interested in the meetings

because the old toilets were filthy and often flooded. They

are only a few meters away from our house, so the stink

could be terrible. My husband spoke at the meetings

more than I did, but he spoke for both of us. I agreed with

everything he said.

The new facilities are much cleaner, although we often still

have to wait a long time to take our turn. To be honest,

the improvements haven’t had much of an impact on

my trading activities. The water from the facilities isn’t

good enough to use for making jamu, so I still have

to buy drinking water. I can use the washing facilities

for cleaning my bottles and glasses, but that’s it. Our

biggest expenses are for the children’s schooling. My son

is now doing the sixth semester of a nursing diploma

course at the Gatot Soebroto hospital. My daughter is in

the second year of junior high school. If school fees and

other expenses are due, then we may have to borrow

money. I’ve never borrowed money from money lenders

or banks, I’d be scared that I wouldn’t be able to pay

it back. If I need a loan for my children’s education, I

borrow the money from my brothers or sisters or other

family members, whoever is able to help.

Sometimes there are unexpected medical emergencies,

which can also be very expensive. A few months ago, my

son had to hospitalized following an asthma attack. The

total cost for his care was around Rp 7 million. I don’t have

savings, so I had to borrow money again. My family doesn’t

have any form of health insurance. Health insurance is

only for people who work in offices. Who would provide

insurance for itinerant traders?! We just have to try to

stay healthy.

When my children finish their education, my husband and

I plan to return to our village in Central Java. My father

lives there and our family owns a small block of land.

The cost of living in the village is much cheaper than in

Jakarta, but you can’t make a living there. We’ll work in

Jakarta while we can, then we’ll go back home.

DARMINI: MARKET TRADER, ITINERANT VENDOR, AND HOUSEWIFE

Ibu Darmini, standing in the only room of her small house.

34 | 2013 PSF PROGRESS REPORT

Summary Information

Status Task Team Leaders Implementing Agency

RIS PNPM III (USRI): active

Wolfgang Kubitzki (wkubitzki@adb.org)

Directorate General of Human Settlements (DGHS), the Ministry of Public Works (MPW)

Start Date to Closing Date Geographic Coverage

28 January 2009 to 30 June 2015

RIS PNPM III: : 600 villages in 215 sub–districts in 37 districts in four provinces (Jambi, Lampung, Riau, and South Sumatra)

PNPM MANDIRI: CORE PROGRAMS

RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM)

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

Map 1. Provinces Covered by RIS PNPM

RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM) | 35

5,853 km of ruralroads built

12,998 bridges built

1,486 wells built

2,526

642

Communal sanitationsconstructed

km of drainage/irrigationcanals built

854domestic waterreservoirs installed

Figure 7. Achievements under RIS PNPM

PROJECT RATIONALE AND OVERVIEWRural Infrastructure Support to PNPM Mandiri (RIS PNPM)

was launched in 2008 as a core PNPM Mandiri program

to help address Indonesia’s large deficit of village

infrastructure. To achieve this goal, it was imperative

to address many causes of rural poverty, including

insufficient access to health, education, safe water, and

sanitation services; lack of economic opportunities; and

poor rural connectivity. Areas in difficult geographies

are isolated further by a shortage of infrastructure and

inadequate market linkages. According to the data

collected in 2010 as part of project preparation, about

50 percent of rural villages are not connected by asphalt

roads and more than 10 percent of all villages are

inaccessible by four–wheel–drive vehicles at certain times

of the year. Poor roads or no roads mean that government

services are less accessible, while higher transportation

costs place an additional burden on poor and remote

communities. In addition to poor road conditions, water

supply needs special attention. Disadvantaged rural

people are especially vulnerable to external shocks and

could easily fall back into poverty in the event of sickness,

natural disaster, harvest failure, or rising food prices.

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

Corresponding to the overall objective of PNPM Mandiri,

RIS PNPM is established with the Asian Development Bank

(ADB) supports to the Government to reduce poverty

in the target areas through three projects: RIS PNPM I

(closed in June 2011), (ii) RIS PNPM Project II (closed in

September 2013) and RIS PNPM III (ongoing as part of

the Urban Sanitation and Rural Infrastructure Support

to PNPM). The project aims to improve access to service

delivery and to promote improved living conditions

for the poor, the near poor, and women in the project

communities. To produce these outcomes, the projects

consist of three main components: (i) strengthening

capacity for community planning and development, (ii)

improving village services and infrastructure through

community development grants, and (iii) improving

the Government’s capacity for project implementation

and monitoring and evaluation. The three projects assist

community mobilization by providing block grants to

finance the upgrading of basic rural infrastructure in

more than 3,800 villages of four provinces, namely, Jambi,

Lampung, Riau, and South Sumatra, in accordance with

community–identified priorities.

PROGRESS IN 2013By the end of 2013, the RIS PNPM project had been

implemented for five years. From 2009 to 2013, the project

had disbursed the total of approximately US$155.2 million

through 5,924 block grants, which were distributed to

finance the construction of basic rural infrastructure

in 37 districts of the provinces in which the project

operated. In 2013, the project disbursed approximately

$13.1 million to 602 villages to build or rehabilitate: 417 km

of rural roads; 129 water supply facilities; 97 sanitation

facilities; 74 km of drainage channels; and 4.1 km of

irrigation channels.

In addition to block grants, the RIS PNPM project

supported and strengthened community participation

and empowerment by enhancing their capacity to

prioritize, design, implement, manage and monitor

community–based projects. Assistance was provided for

community mobilization and facilitation at the village level

and also to identify problems, needs, and opportunities

for local development’s poverty reduction efforts.

Community implementing organizations (CIOs) and

Through community participation, the average cost of developing village infrastructure is cheaper than using contracting services.

RURAL INFRASTRUCTURE SUPPORT TO PNPM MANDIRI (RIS PNPM) | 37

communities were supported in: (i) formulating village

plans (PJM Pronangkis) and related annual investment

plans (Rencana Kerja Masyarakat, RKM) for block grants

funding, (ii) strengthening capacities for procurement

and construction activities, (iii) implementing activities to

promote transparency and accountability, (iv) preparing

quality progress and financial reports, (v) carrying out

efficient monitoring and physical and financial audits,

and (vi) planning and implementing operation and

maintenance arrangement such as the collection of

user charges.

Field observations and surveys conducted in

2013 indicated that in the villages opting to rehabilitate

and expand roads, transportation costs have declined

by 30–50 percent. In villages opting to improve their water

supply systems, the time spent collecting water has been

reduced by approximately 50 percent. In villages opting

to improve sanitation facilities, approximately 10 percent

of households have better access to sanitation facilities.

In communities opting to rehabilitate and expand

village irrigation schemes, the production levels of direct

beneficiaries have increased by approximately 10 percent.

The implementation of civil work by community members

also generated short term employment opportunities in

the project villages. In 2013, approximately 30,000 persons

per month of short–term job opportunities were created,

with an average wage of approximately Rp 50,000 per

day. Around 12 percent of the workers were women,

which was below the target of 30 percent. Discussions

during field visits indicated that many women hesitated

to work as laborers or were not allowed to do so by their

husbands, while some said that they did not have time as

they had to attend to domestic work at home.

In 2013, the project improved socioeconomic conditions

in 602 poor villages in four provinces and contributed

to poverty reduction through the provision of improved

access to basic infrastructure for the poor and the near

poor. Interventions supported by the project focused on

poor villages with weak infrastructure and thus helped to

create significant positive economic, social, environmental,

and institutional impacts such as: (i) sustained impacts

on the village economy through the significant

cost savings and the generation of positive income

effects through the improvements in road networks

Road infrastructures built in Ogan Komering Ilir District has been helping the community to bring their harvest to the local market.

38 | 2013 PSF PROGRESS REPORT

and bridges; (ii) improved access to basic education

and health services; (iii) more hygienic and healthy

environments thanks to the improvements in access to

water supply and sanitation facilities; (iv) higher incomes

due to better harvests (including more crop cycles per

year and increased yield per crop cycle) as a result of

the improvements in irrigation, the increased reliability of

water supply, and the savings from flood–related damage;

and (v) considerable short–term employment generation

(as a result of civil works to construct roads, water supply

facilities and others). Active community participation in

the preparation of investment plans and the construction

of infrastructure helped to strengthen the capacity of

the local government and communities in community

development and good governance.

FUTURE PLANS In 2014, RIS PNPM will continue to provide block grants

to approximately 500 villages to finance the construction

of rural infrastructure. Work on the associated subprojects

is expected to begin in mid–2014. The ADB and

the Government are in the process of discussing future

projects that may commence after the completion of

the RIS PNPM projects in 2014.

LESSONS LEARNEDThe projects yielded a number of important insights

that may inform the design and implementation of

interventions in the future, including the following:

Involvement of beneficiaries: The involvement

of beneficiaries at all stages of planning and

implementation is critical for achieving sustainability,

pro–poor investments and inclusive community

empowerment. To facilitate this involvement, future

projects should consider including components such

as: (i) community control of decisions over resources

and investment choices; (ii) simple and transparent fund

flow arrangements with direct transfers to community

accounts; (iii) comprehensive support to social

facilitators for ensuring full community participation and

overseeing the technical quality of civil works; (iv) strong

accountability procedures such as public disclosure of

budgets and contracts; (v) community management

of funds and procurement matters; and (vi) training of

communities in establishing effective mechanisms for

operating and maintaining new infrastructure.

High–quality facilitation: Community facilitators (CFs)

must ensure that enough time is set aside for community

empowerment activities to enable the sufficient

involvement of community members in the prioritization

of their needs, in the development of investment

proposals, and in decision–making processes generally. To

improve the quality of community facilitators, the project

strengthened the selection process by involving an

independent team to conduct the recruitment process.

Notice of the recruitment of facilitators was published in

a national newspaper and through the MPW’s website. The

evaluation criteria for facilitators were also discussed with

the DGHS and local governments. In addition, refresher

training was provided to facilitators during project

implementation. Support from the district consultants

and district administrations also improved the quality of

the performance of the facilitators.

Table 2. Infrastructure built to date under RIS PNPM projects

Type of infrastructure Unit RIS PNPM 1 RIS PNPM 2 RIS PNPM 3 Total

Rural roads km 1,635.8 3,282 935 5,853

Bridges unit 5,483 5,899 1,616 12,998

Boat landings unit 52 61 40 153

Drainage canals km 142.9 309.1 139 591

Irrigation canals km 25.7 17 8.2 51

Domestic water reservoirs unit 355 458 41 854

Wells unit 75 1,168 243 1,486

Water supply pipelines km 50.3 47.6 11.9 110

Communal sanitation facilities unit 1,820 521 185 2,526

RIS PNPM finance the construction of rural infrastructure to facilitate community plan in building their village.

40 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWBuilding on the PNPM Rural platform, PNPM RISE aims

to accelerate social and economic development

by improving the poor’s access to basic infrastructure

such as access roads, water supply systems, small irrigation

infrastructure, markets and health and education facilities;

and by introducing micro–credit services in rural areas.

Established in the highly decentralized context of

Indonesia where local governments demonstrate a mixed

performance in the area of service delivery, the program

also aims to build the capacity of district and sub–district

administrations to operationalize decentralization and

regional autonomy laws and to facilitate the achievement

of national and local development priorities. PNPM RISE

is implemented by the Directorate General of Human

Settlements (DGHS) within the Ministry of Public Works

and is financed through a US$252 million loan from

Japan International Cooperation Agency (JICA). Between

2008 and 2013, PNPM RISE provided block grants

amounting a total value of more than Rp 1.849 billion

to 2,669 villages for financing the construction of

village infrastructure.

PNPM MANDIRI: CORE PROGRAMS

REGIONAL INFRASTRUCTURE FOR SOCIAL AND ECONOMIC DEVELOPMENT (PNPM RISE)

Summary Information

Status Task Team Leaders Implementing Agency

Active BAPPENAS: Supranto Nadeak (anto@mci.co.id)MPW: Kim Suk Rae (kim@cmac–rise.com)

Directorate General of Human Settlements, Ministry of Public Works

Start Date to Closing Date

Geographic Coverage

26 July 2007 to 26 July 2014 (84 months)

237 sub–districts, 34 districts in 9 provinces (North Sumatera, Bengkulu, Jambi, Bagka Belitung, West Nusa Tenggara, West Kalimantan, South Kalimantan, South Sulawesi and West Sulawesi)

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

Map 2. Provinces Covered by PNPM RISE

REGIONAL INFRASTRUCTURE FOR SOCIAL AND ECONOMIC DEVELOPMENT (PNPM RISE) | 41

Table 3. Infrastructures built under PNPM RISE

Category/Infrastructure Unit

Volume (Fiscal Year)

Total2009 2010 2011 2012 2013

Transportation

Road Kilometers 1,677 2,039 2,389 1,891 1,381 9,377

Bridge Meters 11,183 5,516 4,150 5,191 1,995 28,035

Mooring Boat Unit 43 83 66 24 10 226

Other Package 2,154 1,556 978 1,017 273 5,978

Clean Water and Sanitation

Clean Water Unit 617 548 419 452 159 2,195

Clean Water Piping Kilometers 144 145 105 92 36 522

Bath wash toilet Unit 686 229 178 193 131 1,417

Drainage Meters 52,116 82,657 124,715 51,328 23,691 334,507

Health

Community Health Center/Community Health Center Subsidiary/Village Maternity House

Unit 310 169 239 151 71 940

Agricultural Production Enhancement

Irrigation Canal Meters 114,621 119,037 151,122 144,562 290,164 819,506

Water Construction Unit 367 103 213 67 68 818

Farmer Road Kilometers 12.15 160.11 – 267.34 84.65 524.25

Levee Meters 15,646 7,232 2,664 8,103 12,704 46,349

Agricultural Marketing Enhancement

Village Market Unit 165 117 82 34 19 417

Drying Floor, Warehouse Unit – 83 78 74 86 321

Education

Elementary School/Intermediate School Unit 136 210 86 71 503

Furniture A set of 2,659 – 1,595 4,254

Package – 65 – 56 29 150

PROGRESS AND KEY RESULTSIn 2013 alone, PNPM RISE provided block grants worth

a total value of more than Rp 162 billion to 2,326 villages

for the construction of transportation infrastructure, water

supply and sanitation systems, health and education

facilities and agriculture extension services (See table 3).

These investments have helped to improve the access of

rural communities to vital social and economic services,

which led to improvements in a number of human

development indicators. For instance, the construction

of water supply and sanitation systems and greater

accessibility to health facilities have contributed to

a reduction in the number of deaths from epidemic

diseases such as diarrhea, dengue fever and malaria in

the target areas. However, the program continues to run

into some supply–side constraints, such as the shortage of

health workers in target areas.

Together with investment in infrastructure, the project

focuses on improving the local governance environment.

By using PNPM’s community–driven development

approach, RISE has helped to strengthen the participatory

planning process in the target sub–districts and increased

the community’s involvement in the construction,

utilization and maintenance of basic village infrastructure.

The program has also contributed to improvements

in the quality of the planning and evaluation of

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

42 | 2013 PSF PROGRESS REPORT

Table 4. Effect Indicators for the Six Categories of Infrastructure under PNPM–RISE

NO. INDICATOR TARGET TREND

1. Access to Infrastructure

a. Number of villages accessible by (land, water, land and water)

b. Number of villages by type of widest road surface (asphalt/concrete, gravel/macadam, earth, others)

c. Number of village with road that can be passed by 4–wheel vehicles year round (dominant)

2. Water Supply System and Sanitation

a. Number of villages by main source of drinking water (municipal water supply/mineral water, electric or hand–powered water pump, well, artesian well, river/lake, rain, others)

b. Number of villages where the majority population buys drinking water (Buys, Does not buy)

c. Number of villages by type of toilet facility in majority of households (Individual Toilet, Shared Toilet, Public Toilet, and Toilet not available)

d. Number of households using electricity and the source (PLN and Non PLN)

e. Number of village by type of fuel cooker in majority household (LPG, kerosene, firewood, others: coal, charcoal)

3. Primary Health Facilities

a. Number of village with epidemic occurrences in last year (Diarrhea, Dengue fever, Measles, Acute respiratory infection, Malaria, Avian Influenza, Tuberculosis, others)

b. Number of deaths from epidemic occurrences in last year (Diarrhea, Dengue fever, Measles, Acute respiratory infection, Malaria, Avian Influenza, Tuberculosis, others)

c. Availability of health facilities (hospital, maternity hospital, polyclinic, Community Health Centre, Community Health Sub Centre, House Physician, House Midwife, Village Health Centre, Midwife’s Delivery Clinic, Integrated Health Post, Pharmacies, and herbal store)

d. Number of health facilities (Village Health Centre, Midwife’s Delivery Clinic, Integrated Health Post, Pharmacies, and herbal store)

e. Accessibility of health facilities (hospital, maternity hospital, polyclinic, Community Health Centre, Community Health Sub Centre, House Physician, House Midwife, Village Health Centre, Midwife’s Delivery Clinic, Integrated Health Post, Pharmacies, and herbal store)

f. Number of medical personnel (Male Doctor, Female Doctor, Dentist, Midwife, Others medical personnel, Traditional Midwife)

g. Number of persons having suffered from malnutrition in last 3 years

4. Village Market

a. Shopping Centers

b. Market with Permanent/Semi Permanent Building

c. Number of Markets Without Building

d. Number of Minimarkets

e. Number of Stores

f. Number of Agricultural Tool Stores (owned by village unit cooperatives, owned by non–village unit cooperatives)

5. Number of Primary Education Facilities

6. Area and Small Irrigation

Conversion of agricultural field to non agricultural field in last 3 years (housing, industry, stores, offices, others)

Source: Data Analysis of Village Potential

Increase

Decrease

REGIONAL INFRASTRUCTURE FOR SOCIAL AND ECONOMIC DEVELOPMENT (PNPM RISE) | 43

Table 5. Effect Indicators for Measuring Overall Impact of the Project

NO. INDICATOR TARGET TREND

1. Poverty Alleviation

Total Population

Population under Poverty Line

2. Sustainable& Equitable Regional Economic Development

Transportation Services

Local Small Industries and Handicrafts

Financial Institutions and Services

Majority of Income Source of Rural Community

Commodities as main source of income of rural communities

3. Community Empowerment & Institutional Strengthening at Kecamatan Level

Participatory Planning Process

Community Involvement in Construction

Community Involvement in Operations and Maintenance

Use of Information in Development Planning

4. Institutional Strengthening at Kabupaten level

Planning Process &Evaluation

Use of Information in Development Planning

Source: Data Analysis of Susenas and CMAC Survey

development projects by district governments, particularly

by promoting the use of more accurate information on

the development needs of rural communities. However,

the program has not had the expected impact on

the local economy and poverty reduction negative

trends have been observed in recent years with regards

to poverty levels and the growth rate of services, small

industries and financial services in the target districts.

FUTURE PLANSThis current program was completed in 2013. A

follow–on program, the Rural Settlement Infrastructure

and Kabupaten (District) Strategic Areas Development

(RISE–II), is being prepared and will extend RISE activities

until the end of 2015. Similar programs in the future

should place greater focus on strengthening value chains

for key commodities to spur local economic development.

Increase

Decrease

PNPM Generasi has increased the rate of school participation of elementary school children.

WINDOW ONESUPPORT TO SPECIAL PROGRAMS

ONE of the key roles of the PSF is to enable the Government to take full advantage of the PNPM platform’s ability to reach every village and to deliver an array of services that improves the lives of Indonesians with substantial development outcomes. To this end, the PSF has provided direct budget support to the Government for a range of special programs and pilots, disbursing more than US$177 million since its inception.10 In 2013, there were three active programs under this Window as Post–Crisis and PNPM Green projects closed in December 2012 and PNPM Urban in Aceh project became active. The Roadmap process, which has reaffirmed PNPM’s central role in the Government’s poverty reduction program, and the recent passage of the Village Law provide a great opportunity to integrate lessons from these large–scale experiments into mainstreaming PNPM principles and approaches towards more consolidated local service delivery and comprehensive local development.

With commitments reaching over US$105 million11 and with a continuously expanding geographic coverage (369 sub–districts in 2013), PNPM Generasi is by far the largest PSF program. This program has helped to improve access to health and education services for an estimated 4.8 million beneficiaries. Generasi rewards poor communities’ performance in providing quality education and health services to women and children through an incentivized block grant mechanism. According to an impact evaluation completed in 2011, Generasi has generated significant positive impacts in terms of its twelve target health and education indicators, with the greatest impacts in areas with low baselines.

The Disaster Management Support project responded to the urgent need to provide assistance to communities affected by the October 2010 natural disasters. It has three operations under PNPM Rural, PNPM Urban and the Community–Based Settlement Rehabilitation and Reconstruction (Rekompak), covering three disaster–affected provinces: Central Java, Yogyakarta Special Region and West Sumatra. Despite the delays in the disbursement of additional grants and implementation on the ground, components under PNPM Urban and Rekompak were closed in December 2012 and December 2013, respectively. However, the program under PNPM Rural has been extended further to November 2014 to allow the completion of all sub–projects,

particularly in Mentawai, where recovery is lagging. While all but 74 of 3,489 selected sub–projects under PNPM Rural had been completed by the end of 2012, the progress slowed down significantly in 2013 as only 10 out of the remaining 74 sub–projects were complited. It is explained by a number of factors, among which delays in the disbursement of funds and inaccurate budget planning were the prime contributors. Similar emergency funds in the future should learn from these experiences by strengthening interagency coordination mechanisms to fast–track disbursements and by deploying additional facilitation assistance to support project implementation on the ground.

The PNPM Urban in Aceh project supports the implementation of PNPM Urban in Aceh and in 2013 began providing training to strengthen local government agencies and prepared pilot activities to promote gender equality in Aceh.

2008 2009 2010 2011 2012 2013

177

130

91

1920

217222

157

44

1616

Approved CommitmentsDisbursements

Figure 8. Funds committed and disbursed under Window One, 2008–2013 (US$ million)

10 Total (cumulative) commitments under Window 1 reached US$217 million in 2013.

11 This complements the Government financing of US$89 million (2007–2013).

46 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWKey human development indicators in Indonesia have

improved significantly over the past several decades.

However, progress still lags in a number of areas,

including infant mortality, child malnutrition, maternal

mortality, rates of junior secondary school enrolment,

and the quality of educational learning, particularly in

rural and remote areas and in the eastern provinces. To

address these lags, the Government’s Master Plan for

the Acceleration and Expansion of Poverty Reduction

(MP3KI), emphasizes improved access to basic health and

education services as a key pillar of its overall poverty

reduction strategy.

PNPM Generasi empowers local communities in

poor, rural sub–districts to increase the utilization of

health and education services. The program is helping

the Government meet three Millennium Development

Goals: (i) achievement of basic universal education;

(ii) reduce child mortality; and (iii) improve maternal

health — by using community planning and incentivized

sub–district grants to improve performance on

twelve priority health and education indicators. With

Summary Information

Status Task Team Leaders Implementing Agency

Active Robert Wrobel (rwrobel@worldbank.org)

Directorate for Empowerment of Community Social and Cultural Institutions, Directorate General of Community and Village Empowerment (PMD), Ministry of Home Affairs and PSF/World bank

Start Date to Closing Date

28 May 2008 to 31 December 2017

Geographic Coverage Approved Budget

3,600 villages in 369 poor sub–districts in East Nusa Tenggara, West Nusa Tenggara (NTB), West Java, East Java, North Sulawesi, Gorontalo, West Sulawesi and Maluku provinces

US$110,840,297

WINDOW ONE

PNPM GENERASI

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

Map 3. Provinces Covered by PNPM Generasi

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

PNPM Generasi has contributed in reducing the malnutrition rate in communities and decreasing the number of severely underweight children.

48 | 2013 PSF PROGRESS REPORT

212

2010 2011 2012 2013

sub-districts231

sub-districts344

sub-districts369

sub-districts

the assistance of PNPM facilitators, communities work

with health and education service providers to identify

locally appropriate ways to improve access to health and

education services and to increase the rate of utilization

of these services. Sub–district grants are used to address

constraints that are identified as being significant in

particular sub–districts.

In 2009 the Government substantially increased its budget

for education, which resulted in a larger share of PNPM

Generasi grants being used for health activities (Figure

12). A major of community health expenditures finance

supplementary feeding, while a majority of community

education expenditures finance school facilities,

equipment, and uniforms as well as fees for poor students

(Figures 10 & 12).

In 2013, the PSF provided support to the implementing

agency, the Directorate General of Community and

Village Empowerment (PMD), to introduce substantial

design changes to the program to improve its efficacy

and to ensure that its objectives were fully aligned with

the latest Indonesian Government policy priorities.

These design changes were intended to integrate PNPM

Generasi’s demand–side approach with measures aimed

at improving the quality and availability of basic health

and education services. With these changes and with

support and funding from the Millennium Challenge

Account–Indonesia (MCA–I), the Ministry of Health (MoH)

and district health offices will deliver interventions

aimed at strengthening the capacity of health workers

to respond to increased community demand for

nutrition–related services.

PROGRESS IN 2013Despite delays related to PMD’s 2013 budget revisions,

the implementation of block grants, PNPM Generasi’s

largest component, progressed well in 2013. Out of a total

of 369 participating sub–districts, 366 sub–districts have

benefited from PNPM Generasi’s investments in 2013,

with block grants disbursed to more than 3,600 poor, rural

villages in these sub–districts. In total, the value of block

grants disbursed over the year amounted to Rp 431 billion,

or 99.4 percent of the budget allocated for this purpose.

PMD made substantial progress on project facilitation

and technical assistance. To increase the quality of

facilitation, PMD trained a total of 414 facilitators, which

involved training of trainers and refresher training for

district facilitators and sub–district facilitators, as well

as pre–service training for 38 sub–district facilitators

to fill vacant positions in existing locations. In addition

to project administration and management, training

also focused on the introduction of the new program

indicators. PMD also revised training to promote

the demand for basic health and education services

and to achieve better coordination with health and

education workers.

PNPM GENERASI | 49

212

2010 2011 2012 2013

sub-districts231

sub-districts344

sub-districts369

sub-districts

4%

7%

7%13%

15%

54%SupplementaryFeeding

FinancialAssistance

to UseServices

Counseling andTraining

Facilities andEquipment

Financial Incentivesfor Health Workers

Infrastructure

2007 2008 2009 2010 2011 2012 2013

53% 53%

41%47%

32%

40%

29%

47% 47%

59%53%

68%

60%

71%

Health

Education

Figure 11. Community Health Expenditures in 2013

Figure 12. Community Education Expenditures in 2013

Figure 10. Percentage of block grant funds spent on health and education activities

2%4%

8%

35%

51%#Facilities,Equipment andUniforms

Financial Assistancefor Poor Students

InfrastructureFinancial Incentivesfor Education Workers

Counselingand Training

Figure 9. Number of sub–districts benefiting from improved access to health and services

Over the year, PNPM Generasi expanded to three new

provinces, meeting predefined targets for 2014. In these

provinces, a total of 138 district facilitators, district

financial management specialists, and sub–district

facilitators were recruited. PMD also carried out a number

of key tasks related to defining PNPM Generasi’s strategic

direction for 2014–2017. These include the completion

of a study on exit options in better performing locations

in Java; the revision of the Project Operations Manual;

and the design of a new institutional framework for

the project.

50 | 2013 PSF PROGRESS REPORT

PNPM Generasi provides special training and giving iron supplements for pregnant mothers.

PNPM GENERASI | 51

The PSF focused on providing support for the monitoring

and evaluation. Among other measures, this involved

partnering with the University of Gadjah Mada (UGM) to

deliver the first round of the PNPM Generasi Performance

Monitoring Survey.12 This rapid population–based

survey functions as a low–cost, scientifically valid data

collection method to supplement the information on

the program’s impacts collected through the MIS. Initial

results from the survey show that the greatest challenges

remain in the achievement of the defined indicators

measuring the rate of consumption of iron supplements

by pregnant women; the proportion of women

completing three postnatal visits; and the proportion

of children receiving complete immunizations. In

addition, the PSF partnered with the National Team

for the Acceleration of Poverty Reduction (TNP2K) and

the Australian Department of Foreign Affairs and Trade

(DFAT ) to deliver a qualitative study of the ways in which

PNPM Generasi affects nutritional outcomes in target

villages.13 The results of these surveys have served as input

to improve many aspects of the design of the program,

including the Operations Manual and training materials

for facilitators.

Despite all the progress, a number of issues that hamper

program performance persist. In particular, PMD’s

administration of the programs budget continued

to be sub–optimal. Delays in the process of revising

the DIPA14 resulted in implementation delays, creating

concerns that the total value of funds allocated for

block grants would not be disbursed or that these

funds would not be used optimally. The quality of

facilitator training also remained a concern. To address

this, the PSF is providing support by deploying health

communications specialists to advise and design

a training and communications campaign that targets

village–level facilitators and health volunteers. There is

some uncertainty regarding the availability of the funds

necessary to sustain the implementation of the program

in all 500 sub–districts in the 2015–2017 period. The PSF is

working with PMD, Bappenas, and the Steering Committee

of PNPM (Pokja Pengendali) to develop strategies to

scale–down the program if funds are not available to

sustain the current level of coverage.

FUTURE PLANSKey areas of PSF support to PNPM Generasi for 2014 and

beyond include the provision of support for improved

training and communications for local facilitators; for high

quality monitoring, evaluation, and special studies; and for

technical assistance to facilitate effective coordination and

information across the expanded set of stakeholders, most

notably MoH, who are involved in the implementation and

oversight of the program.

The Government has emphasized childhood stunting

as a key issue affecting the development of human

capital and constraining economic growth in Indonesia

and has requested support from development partners

to accelerate improvements in maternal and child

nutrition. Improvements to maternal health and

nutrition and reductions in stunting are also defined

as priorities in the Medium–Term Development Plan

(RPJMN) for 2010–2014. PNPM Generasi will contribute

to the achievement of these goals by linking ongoing

community empowerment work with supply–side

improvements. A rigorous impact evaluation is planned in

2014 with measure the impacts of this holistic approach in

South Sumatra, West Kalimantan, and Central Kalimantan.

PNPM Generasi will also provide support to

the development of a governance structure and general

guidelines for key stakeholders to ensure smooth

implementation of complementary supply–side activities

in areas where the PNPM Generasi program is being

implemented. Intensive monitoring and evaluation

will be needed to measure the impact of the design

changes and to determine whether further adjustments

are needed. Together with Bappenas and PMD, the PSF

will play a major role in coordinating the activities

related to the impact evaluation and those implemented

by the MCC and MCA–I in the three new provinces. It

is anticipated that the baseline survey will begin to be

conducted in late 2014, with the end–line delivered

in 2017.

12 This survey will be finalized by the end of April 2014.13 Opportunities and Approaches for Better Nutrition Outcomes through

PNPM Generasi. http://psflibrary.org/web/?q=catalog&recid=6922.14 Daftar Isian Pelaksanaan Anggaran (Budget–Funded Project Proposal

Lists).

52 | 2013 PSF PROGRESS REPORT

15 From March 1, 2014 onwards, PMD will begin using an updated Results Framework that tracks a robust set of PDO–and Intermediate Results–level indicators and draws from new data sources that complement the information gathered through the project MIS.

KEY RESULTS15

Result Indicators

Unit of Measure

Base-line

Total Target

Targets (cumulative)

Cumu-lative Progress as of Dec 31, 2013

Difference with cumulative tar-get for 20132011 2012 2013 2014 2015

Project Development Objective: Villagers in PNPM Rural locations to benefit from improved socio–economic and local governance conditions.

# of direct proj-ect beneficiaries

#of bene-ficiaries

3.1 million (2010)

7.6 million

3.6 mil-lion

4.3 mil-lion

4.8 million

6.8 mil-lion

7.6 mil-lion

1,736,648 –3,063,352 (Data from only 40% of villages uploaded to MIS for 2013 at date of writing.)

# of sub–districts with communi-ties benefiting from improved access to health and education services.

# of sub–districts

212 499 290 353 369 499 499 369 Completed.

Percentage of sub–districts benefit from increased invest-ments in priority health and edu-cation targets

percent-age

95% (276 of 290 in 2011)

95% (353 of 369 in 2013)

95% 95% 95% 95% 95% 99% (366 of 369)

4% over achieve-ment (79% disbursed in 366 sub–districts. PMD anticipates disbursements for the rest to take place in early 2014.)

Min 50% par-ticipation rate of women and poorest commu-nity members in planning and decision–making meetings.

percent-age

63% (2010)

50% 69% 69% 72% 75% 75% 72% Data from the participation rate in 2013 during the planning process.

90% of program facilitators (dis-trict and sub–district) receive agreed upon training days in participatory planning meth-ods and health and education topics.

percent-age

90% 90% 90% 90% 100% 100% 100% 90% –10% (All training has been con-ducted in 2013, but pre–service training was conducted in 2 Phases. Phase 2 will be conducted in Q1 2014.)

Multi–sectoral regional and national evalua-tion workshops conducted

# of work-shops

0 16 6 8 10 13 16 10 3 workshops delivered in 2013 (Workshop with BPKP in Novem-ber. National Co-ordination Work-shop in October and December.)

Little girls walking SDN Cihamerang, Kec Kebandungan Sukabumi photo by Juliana Wilson

54 | 2013 PSF PROGRESS REPORT

Almost 150,000 Indonesian children under the age of

five die each year, with most of these children dying

during birth or in the first month following birth.16 Most

of these deaths are caused by premature birth and

severe infections, including pneumonia, meningitis and

septicemia, mostly during or shortly after a birth that

wasn’t attended by a medically trained midwife.

To reduce the infant mortality rate, over the past decades,

the Indonesian Government has introduced a number

of programs to make sure that qualified midwives are

available to attend births and that women use these

midwives’ services. The Government has also introduced

programs to ensure that all children are vaccinated against

deadly infectious diseases; that they take vitamin A and

other supplements; and that children’s weight is checked

regularly so that action can be taken if they are too thin

for their age. These programs have had a very positive

impact, as shown by the fact that the number of children

who die has gone down by about half since the 1990s.17

Even so, many Indonesian women still give birth without

being properly attended. In many cases, midwives live and

practice quite far away from where expectant mothers

live, often because health agencies can’t find midwives

willing to be posted to remote areas. Often, even when

midwives are available, women prefer to use traditional

birth attendants, because they live closer; are familiar

members of the community; are cheaper; or because

the women don’t expect their births to be difficult and

don’t see the need for a midwife. Also, the decision

whether or not to seek the services of a midwife is often

not made by the woman giving birth, but by her husband

or her in–laws, who may have very little understanding

of the dangers involved and who may not be prepared

to expend the resources or take the trouble to see that

the woman is properly attended. This is true across

Indonesia, but it is more likely in remote, poor villages,

FEWER CHILDREN DIE AFTER A MIDWIFE TAKES UP A POST IN A REMOTE VILLAGE

16 http://www.unicef.org/indonesia/children.html17 http://www.unicef.org/indonesia/children.html

Oyah (left) and Ibu Emur (right), a traditional birth attendant, or paraji, attending a meeting on maternal health.

PNPM GENERASI | 55

where all of the factors mentioned above are likely to be

more of an issue.

Together with making sure that mothers themselves don’t

die or suffer health issues during or following birth, one of

the main goals of the PNPM Generasi program is to reduce

the infant mortality rate across Indonesia. The PNPM

Generasi program pays a midwife a significant bonus to

take up a post in a remote village with very limited access

to health care services. As a result, the number of children

and infants who die there has gone down dramatically.

The sub–district of Cibitung, PNPM Generasi facilitators

and local health agencies noted that over at least three

years, more children had died in a single, remote village,

Ciroyom, than in any other village in the sub–district. In

2011 alone, six young children died in that village, mostly

during or soon after birth. In 2012, seven died there. The

village had also done very badly in terms of many of

the other indicators used to measure infant and maternal

health, including the rate of stunting, vaccinations,

the number of births attended by qualified medical

personnel, and so on.

Rudy Malik, the PNPM Generasi sub–district facilitator,

explained the reason for the high number of deaths:

The village is only about 25 kilometers from

the nearest community health center, but villagers

have to use a boat that can take two hours to reach its

destination. Alternatively, they have to use motorbikes

or a car suited for rough roads. If the tides aren’t right

or if it’s raining, there’s no way out. There is no regular

boat service, either. Villagers have to charter a boat,

which makes it too expensive for most villagers to

make the trip unless they feel they really have to. The

physical isolation and the poverty of the community

make providing medical care very difficult.

Rudy says that the health agency had made a number of

attempts to post a midwife to the village over the years,

using freshly graduated health workers who are required

to work at community health centers on a very low salary

for a set period of time in order to complete their formal

qualifications, but either the post had remained unfilled,

or the midwife had abandoned her post after only a short

period. As Rudy says:

No–one wanted to be posted there. There’s no

electricity, it’s cut off from the rest of the world, and

the people there are poor and uneducated. In larger

villages, there are plenty of opportunities for midwives

to make extra money through private practice. There

is practically no prospect of that in Ciroyom.

With the high cost and the difficulties villagers face

getting in and out of the village, a trip outside is a very

rare event for most people. Without resident health

workers, this means that many villagers never use formal

medical services. As Oyah, a poor 28–year old farmer,

volunteer health worker and housewife, says:

I’ve only been to the sub–district center a handful of

times in my life. The last time I went out was to vote

in the last presidential elections. I’ve never visited

a hospital or had a consultation with a doctor. I’ve

had three children myself, but two of them died. One

was still–born, the other one seemed healthy when I

delivered her, but when I checked her in the morning,

she wasn’t breathing.

Without a qualified midwife in the village at the time

she gave birth, Oyah, like almost all the other women in

the village, was attended by a paraji, or traditional birth

attendant. One respected paraji, Ibu Emur, describes her

role in the village as follows:

I’m 63 or 65, I’m not sure of my exact age. I’ve helped

countless women deliver their babies, more than I

can remember. Some of the babies I delivered are

grandmothers themselves now. Some of the babies

Rudy Malik, the PNPM sub–district facilitator.

56 | 2013 PSF PROGRESS REPORT

died. God decides which baby lives or dies. I help

the woman giving birth by holding her hand and

praying while she’s delivering the baby. Then I take

the placenta and bury it in a hole in the ground, with

a ceremony.

Rudy is yet firm about the need for a qualified midwife:

Paraji might be able to help with an uncomplicated

delivery, but they aren’t competent to deal with an

emergency. That’s why official health agency policy is

that a birth should always be facilitated by a qualified

health worker, with paraji playing a supporting

role, providing psychological support and acting as

mediators between health care workers and women

giving birth to explain procedures and to ensure that

the woman follows the proper protocol.

Of course, for this to work, there must be an available

midwife. Rudy explains how he and the officials of

the health care agency used PNPM Generasi funds to fill

the long–vacant position in Ciroyom:

We decided to recruit a midwife and pay her a very

significant bonus of Rp 3 million per month for

accepting a difficult post, on top of the base salary

of around Rp 650,000 per month. The health agency

played a major role in the recruitment process,

advertising the position through its network of

community health centers. The candidates had to

pass a range of tests, including a psychological test

to determine their suitability to living in a remote,

difficult location. The successful candidate, Elin

Martiana, was given a 12–month contract, beginning

in 2013.

According to Rudy, since the deployment of Elin Martiana

in Ciroyom, there has been only a single recorded death of

a new–born baby. In addition to reducing the number of

infant mortalities, he says, the midwife is providing many

other vital health services. Since her arrival, the number

of children suffering from stunting has gone down

and the number of children receiving vaccinations and

supplements has gone up, as has the number of women

breast feeding their babies properly and the number of

women attending health counseling and socialization

sessions.

Rudy says that PNPM Generasi will be able to provide

funds for the midwife to stay in the village for at least

a year and possibly two. So, what happens after that?

Rudy says:

PNPM Generasi helps to identify needs and possible

solutions and to test new approaches that have not

been tried by the health agency. If we can show that

a new approach works, district governments and

their agencies can continue these initiatives and

implement them as part of their core programs. In

that way, the impact of short–term projects funded

through PNPM Generasi can be sustained over

the longer term.

Even after Elin Martiana arrived in the village, it wasn’t

easy to make change happen. Just because a midwife

was available, it didn’t mean that everyone thought

it was necessary to use her services. Elin describes

the challenges she faced, which included the extremely

difficult operating conditions, community attitudes, and

the difficulties of living in a remote community.

Oyah, a poor 28–year old farmer, volunteer health worker and housewife, has given birth to three children, with none of these births being attended by a qualified midwife. Only one of these children has survived.

PNPM GENERASI | 57

This is the first time that I’ve lived or worked in a remote

area. I live and sleep in the health care post itself. There’s

no electricity in the village. When I have to deliver a baby

at night, I use a battery lamp. Even getting clean water can

be difficult. I’m the only health worker in the community,

so apart from looking after women and children, I have to

provide first aid in the case of accidents and emergencies.

That’s not usually part of a midwife’s job. I don’t have any

reliable support system if something goes wrong. Just last

week, I was assisting a mother who had a very small frame.

The baby was large and she was having a lot of difficulties.

She was in labor for hours. I thought we were going to

lose both the mother and the child. Luckily, the weather

was good and a trader with a jeep was visiting the village.

We were able to evacuate the mother and take her to

a health post in another village with better facilities. We

were able to save them both.

At first, the community didn’t really accept me. I’m only

21 years old, and a lot of the people here didn’t take me

seriously. At first, a lot of mothers didn’t even attend

the health care post for regular checkups. The situation

is beginning to improve. I’ve worked with the village

head and the primary school teachers to make people

more aware. Before I came, meetings at the health

care post were run by the volunteer health workers.

They often didn’t happen or the schedule changed, so

women didn’t think it was important. I’ve made sure that

the meetings are regular and punctual. I’ve also organized

the volunteers to knock on doors to make the women

come. I try to work with the traditional birth attendants,

the paraji, to keep track on the community and to tell me

when a woman is about to give birth.

I took the job because I always wanted to use the skills I

learned to help women, and the women here really need

help. Also, the package offered for the position was quite

attractive. Before working here, I worked in Jakarta for

a while. I felt more isolated there than I did here. It was

very expensive and there are so many midwives there,

so it was hard for a fresh graduate to find extra work.

My family lives in Sukabumi, so if I have leave, I can visit

them quite easily. I’d take another job in a remote area, if

the community needed me and if the health agency was

willing to send me there.

ELIN MARTIANA: MIDWIFE, CIROYOM, CIBITUNG

Elin Martiana, in the health post where she lives and works.

58 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWIn 2010, Indonesia was hit by several major natural

disasters, including an earthquake which triggered

a tsunami that struck Mentawai (West Sumatra) and

the volcanic eruption of Mountain Merapi (Central

Java and the Special Region of Yogyakarta). These

events resulted in the deaths of hundreds of people

and the displacement of tens of thousands more,

causing significant economic losses to already poor

communities. The Indonesian Government requested

emergency assistance to facilitate the use of the PNPM

platform as a key instrument for its recovery strategy

in these areas. The Government also asked that special

funding for disaster recovery be made available in

other locations, should the need arise. The PSF’s Joint

Management Committee (JMC) responded positively to

the Government’s request by establishing the Disaster

Management Support project in 2011.

Summary Information

Status Task Team Leaders Implementing Agency

Active (PNPM Rural)

Sentot Satria (ssatria@worldbank.org)George Soraya (gsoraya@worldbank.org)

• PNPM Rural: Directorate of Community Institutions and Training, Directorate General of Community Empowerment (PMD), Ministry of Home Affairs

• PNPM Urban/Rekompak: Directorate General of Human Settlements (DGHS), Ministry of Public Works

Start Date to Closing Date

• PNPM Rural: 23 March 2011 to 30 November 2014• PNPM Urban: 23 March 2011 to 31 December 2012 (closed)• Rekompak: 23 March 2011 to 31 December 2013 (closed)

Geographic Coverage Approved Budget

Three Provinces: Central Java, Special Region of Yogyakarta and West Sumatra

US$ 26,744,209

WINDOW ONE

PNPM DISASTER MANAGEMENT SUPPORT

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

Map 4. Provinces covered by PNPM Disaster Management Support project

PNPM DISASTER MANAGEMENT SUPPORT | 59

Nanggroe AcehDarussalam

NorthSumatera

WestSumatera

Riau

RiauIsland

BangkaBelitung

WestKalimantan

EastKalimantan

CentralKalimantan

SouthKalimantan

SouthSulawesi

WestSulawesi

SoutheastSulawesi

CentralSulawesi

NorthSulawesi

NorthMaluku

WestPapua

Papua

Maluku

Gorontalo

Jambi

SouthSumatera

Bengkulu

Lampung

Banten

JakartaSpecialDistrict

WestJava

CentralJava

EastJava

Bali

WestNusa

TenggaraEast

Nusa Tenggara

YogyakartaSpecialDistrict

The project supports the Government’s disaster

management efforts at the community level through

three main operations: PNPM Rural; PNPM Urban; and

the Community–Based Settlement Rehabilitation and

Reconstruction (Rekompak) program. The project covers

the above mentioned three provinces that were affected

by disasters: 196 villages (PNPM Rural), 38 urban wards

(PNPM Urban) and 45 villages (Rekompak). In areas

affected by the Merapi volcanic eruption, the project

supported the post–eruption rehabilitation and

reconstruction objectives laid out in the Renaksi RR Merapi

(Action Plan for Merapi Rehabilitation and Reconstruction),

which was enacted through Perka No. 14, 2011 (Regulation

of the BNPB, National Agency for Disaster Management).

This Action Plan was later amended to include villages

impacted by successive lava flows.

The grants, which are intended to help finance of the costs

at disaster management efforts, have three components:

(i) Disaster Recovery Kecamatan (sub–district) Grants; (ii)

Facilitation Support; and (iii) Implementation Support

and Technical Assistance. Disaster recovery grants are

additional to the regular PNPM block grants. In a situation

where a disaster occurs, the project’s operational policies

allow communities to use the regular block grant

to conduct cash–for–work activities and to facilitate

the provision of social funds to respond to emergency

situations; to build temporary shelters; and to execute

other similar activities, before the post–disaster grant

becomes available. The additional grant then allows village

residents to rebuild damaged infrastructure.

The project initially got off to a slow start because of

rigidities in the Government’s budget systems and

procedures, which delayed the disbursement of block

grants in affected areas. However, after this issue had been

overcome, the implementation of the project gathered

momentum. By the end of 2011, the project had disbursed

more than US$9 million to support communities affected

by the Merapi eruption, facilitating cash–for–work

programs that provided a total of more than 800,000 days

of employment for local community members. The

cash–for–work programs first supported cleanup

activities, followed by the reconstruction of infrastructure.

To compensate for initial delays in disbursements,

the project was extended until December 31, 2013, so

that sub–projects under PNPM Rural and Rekompak

could be completed. All of PNPM Urban activities were

completed by the end of 2012. For projects implemented

under PNPM Rural, an additional extension was approved

to complete activities in Mentawai, with this extension

running until November 30, 2014.

PNPM Disaster Management provided assistance in form or emergency response in Sinabung

60 | 2013 PSF PROGRESS REPORT

PROGRESS IN 2013PNPM Rural: After completing all of the proposed

sub–projects in Yogyakarta and Central Java in 2012,

the focus of post–disaster activities in 2013 was on

Mentawai, West Sumatra. To achieve synergy with other

activities in Mentawai, most PNPM Rural sub–projects

have been located in accordance with the plan for

the construction of permanent residences (Hunian

Tetap, HUNTAP) implemented by the National Agency for

Disaster Management (Badan Nasional Penanggulangan

Bencana, BNPB) as part of the Mentawai post–tsunami

reconstruction and rehabilitation program.

Of the 74 selected sub–projects in Mentawai, 10 had

been completed by the end of 2013. Completion of

the remaining works (64 sub–projects) has been delayed

for a number of reasons, including a slow budget

carry–over process; scarcity of material on the island;

inaccurate budgets that required budget recalculation;

and an incomplete accountability process over

the previous years’ sub–projects in several sub–districts.

The rate of completing the outstanding accountability

processes was 40 percent at the end of 2013. The slow

progress was yet again due to delays in the disbursement

of funds. For instance, it was revealed that only

50 percent of the fund was disbursed by May 2013,

when the joint field mission was conducted by the PSF,

National Management Consultant (NMC) and Regional

Management Consultants (RMCs). Later, PMD transferred

the remaining funds into the revised DIPA18 2013, which

were disbursed in December 2013.

In November 2013, the Government requested

an eleven–month no–cost extension to complete

the remaining sub–projects, with intensified facilitation

and oversight. However, challenges remain regarding

facilitation. Despite constant efforts to fill vacant positions,

provincial teams found it difficult to recruit facilitators

for Mentawai as it is in a remote area and could deploy

only seven facilitators. For strengthening oversight,

the provincial consultant team and the post disaster

management specialist from the NMC have conducted

regular monthly monitoring and field visits to Mentawai

since August 2013.

Rekompak: In 2013, Rekompak supported the building

of infrastructure and utilities at relocation sites and

the implementation of community disaster risk

reduction (DRR) measures. Facilitators were deployed to

assist families to settle into their new locations and to

integrate with host communities. The project facilitated

the construction of 2,395 core houses, surpassing

the initial target of 2,045 housing units thanks to

the additional housing grants from BNPB.19 In addition,

Rekompak facilitated activities to support the livelihoods

of the relocated community member and to manage

settlements more broadly. By the end of December 2013,

all PSF funds had been disbursed.

Despite the achievements, challenges remain in

the operationalization of disaster risk management

policies by local governments and central agencies.

It has been difficult to secure the full agreement of all

stakeholders regarding the regulation and management

of directly affected areas, particularly the enforcement of

prohibitions on dwelling in these areas (squatting) and

the implementation of measures to restore the ecosystem

and to support the livelihoods of community members.

Rekompak has urged local governments to designate

risk zones and regulate them appropriately, which would

subsequently require the involvement of all related

agencies working in the area. In addition, to ensure that

the impact of the project is sustained after its closure,

Rekompak is transferring the roles of community

facilitation to local agencies in stages, so that the process

of applying measures to improve the level of community

resilience to disasters would continue.

FUTURE PLANSThe project will focus on filling vacant facilitators positions

in Mentawai and completing on–going sub–projects.

To ensure close oversight, the provincial consultant will

continue to conduct monthly visits to Mentawai until

the end of the project. For Rekompak, remaining work will

be completed in early 2014.

LESSONS LEARNEDPNPM Rural: The implementation of this component

of the project has been significantly impacted

by the difficulty of finding facilitators willing to be

assigned to remote locations. These are systemic issues

affecting all PNPM projects in remote areas, which

are characterized by frequent facilitator absences;

very high travel costs that are not fully reimbursable

under the current facilitator’s transportation allowance

package; limited communication connections; and

18 Daftar Isian Pelaksanaan Anggaran (Budget–Funded Project Proposal Lists)

19 This figure does not include Qtel (Qatar Telecom) funded housing units.

PNPM DISASTER MANAGEMENT SUPPORT | 61

other issues related to remote location. The delays and

other implementation problems experienced by this

component of the project underscore the need to address

the systemic challenges throughout the PNPM Rural

program. In addition, the high level of fiduciary risk in

Mentawai emphasizes the importance of strengthening

the overall supervision and oversight by Regional

Management Consultant and National Management

Consultant to mitigate fiduciary risks.

Rekompak: The implementation of this component

of the project demonstrated that cross–district

collaboration is important for achieving the project goals.

For example, for having shorter evacuation distances,

the Tlogolele village in Boyolali district was included in

the evacuation system to support Mertoyudan village

in Magelang district. Another important lesson learned

from this component was the importance of giving due

consideration to the issue of the livelihoods of relocated

community members. An in–depth study of the original

sources of living and resources is essential, before

involving communities in the decision–making process

and proposing alternatives for resettlement. Such a study

should pay close attention to the availability of production

facilities and the need for land, and should also include all

community members in discussion.

Result Indicators

Unit of Measure

Base-line

Total Target

Targets (cumulative) Cumulative Progress as of Dec 31, 2013

Difference with cumula-tive target for 20132011 2012 2013

Project Development Objective: To support the Government of Indonesia’s disaster management efforts at the community level through three ongoing operations.

PNPM Rural

# of completed sub–projects

# of projects complet-ed

0 3,489 2,709 3,489 3,489 3,425 –64 (Remaining sub–proj-ects are underway in Mentawai.)

% of infrastruc-ture projects evaluated as of high quality

% of projects of high quality

0 >50% n/a >50% >50% Assessment not yet con-ducted

The evaluation will take place when all sub–proj-ects in Mentawai are completed.

Audit of disaster affected sub–districts.

% of sub–dis-tricts audited

0 >25% sample

n/a >25% >25% 39% 14% (over achieved): 7 sub–districts in 2 dis-tricts in Central Java and Yogyakarta were audited. FY2012 Audit was com-pleted in June 2013.

Rekompak

# of houses completed by the end of the project

# of houses

0 2,045 1,636 2,045 2,045 2,395 Although the output surpassed the total target thanks to the additional financing from BNPB, the original target under this project financing may have to be readjusted.*

% of target vil-lages that have restored basic community infrastructures

% of villages

0 100% (101 villag-es)

30%(30 vil-lages)

100% (101 vil-lages)

100%(101 vil-lages)

90% (91 villages)

Newly added housing requires additional infra-structure so work is con-tinuing in several villages in this regard.

*Whereas the total funding allocated for housing and infrastructure will increase with BNPB’s contribution, the total targets for housing and/or infrastructure works financed by the project may be reduced as the allocation to technical support increases correspondingly.

KEY RESULTS

62 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEW PNPM Urban is a core component of the Indonesian

Government’s flagship poverty alleviation and community

empowerment program, with its development objective

being to support the Government’s efforts to ensure

the urban poor in participating urban wards benefit from

improved local governance and living conditions. In

2012, the Joint Management Committee (JMC) approved

a joint Indonesian Government and United States

Agency for International Development proposal of a new

US$23.5 million grant to support the implementation

of PNPM Urban in the province of Aceh. The project has

five components:

zz Capacity Building for Communities and Local

Governments provide capacity–building training

and workshops for Community Organizations (Badan

Keswadayaan Masyarakat, BKM) and Revolving Loan

Funds unit staff;

zz Urban Ward (kelurahan) Grants: worth of more than

US$14 million are given to urban wards to co–finance

sub–projects identified in Community Development

Plans such as pilot interventions in women groups

to enhance participation, spatial development

programs for delivering neighborhood infrastructure

to the poorest members of communities, and

interventions for strengthening the livelihoods of

poor communities;

zz Implementation Support and Technical Assistance

to support activities to build the capacities of staff

within the Project Management Unit (PMU) and

local governments and to monitor and evaluate

project activities;

zz Contingency for Disaster Response enhances

preparedness and rapid–response measures to

address disasters, emergencies and/or catastrophic

events as needed at the urban ward level through

sub–projects and/or by using project implementation

arrangements; and

zz Capacity building and supervision World

Bank–executed trust funds were also activated to

provide supervisory support and technical assistance

to the Directorate General of Human Settlements of

the Ministry of Public Works (DGHS), PNPM Urban’s

implementing agency.

PROGRESS IN 2013Preparation for a pilot project to promote gender equality

(Selaras) began in early 2013. As part of these preparations,

the PMU recruited and trained additional facilitators for

pilot initiatives in 400 urban wards in Aceh, as well as

a gender specialist at the provincial level and an assistant

city coordinator at the city/district level. Each urban

ward has been allocated funds worth of Rp 150 million

for infrastructure and social development activities. The

project also facilitated the preparation and dissemination

of communications material among consultants,

facilitators, and communities to deliver the program’s core

message and build awareness.

A series of capacity building activities, including

Training of Trainers and workshops at the city level,

were conducted. These workshops were attended

by representatives of local governments, CSOs,

universities, the media, and communities, disseminated

Summary Information

Status Task Team Leaders Implementing Agency

Active Evi Hermirasari (ehermirasari@worldbank.org)George Soraya (gsoraya@worldbank.org)

Directorate General for Human Settlements, Ministry of Public Works (DGHS) and World Bank

Start Date to Closing Date

21 May 2012 to 31 December 2014

Geographic Coverage Approved Budget

400 Urban wards in 12 cities/districts in Aceh Province

US$ 24,808,605

WINDOW ONE

PNPM URBAN IN ACEH

PNPM URBAN IN ACEH | 63

KEY RESULTS20

information related to the program and strengthened

the commitment of stakeholders at the city level. The

project also facilitated the development and formulation

of a technical manual that incorporates the key

performance indicators related to the gender program.

Progress in terms of these indicators will be monitored

through the MIS.

FUTURE PLANSFor 2014, in addition to implementing the gender pilot

project, the project will implement sub–projects and

support a pilot livelihoods project. DGHS will calculate

the cost, select locations, prepare technical guidelines

and training materials, and hire additional consultants and

facilitators to enhance project implementation.

LESSONS LEARNED Several local governments in Aceh already have gender

mainstreaming programs and meet the operational

costs of these activities from their own budgets, while

others have not yet placed gender mainstreaming onto

their agendas. The coordination and synchronization

of the existing gender empowerment activities with

the regular PNPM Urban program at the community level

is a critical factor for the success of both.

20 Indicators under Component 1 (Capacity Building for Communities and Local Governments), Component 2 (Kelurahan Grants) and Component 3 (Implementation Support and Technical Assistance) cannot be measured yet since the implementation of activities started only in October 2013. Hence, only the results on Component 4 (Implementation and Supervision), which was implemented by the PSF in preparation for the project, are reported here.

Result IndicatorsUnit of Measure Baseline

Total Target

Targets (cumulative)

Cumu-lative Progress as of Dec 31, 2013

Difference with cu-mulative target for 20132012 2013 2014

Project Development Objective: To help ensure the urban poor in participating urban wards benefit from improved local governance and living conditions that poor benefit from improved socio–economic and local governance conditions.

Infrastructure built is at least 20% less expensive than that built by non–community based ap-proaches

# of urban wards

– in 80% of partici-pating urban wards

80% partici-pating kelura-han

80% partici-pating kelura-han

80% partici-pating kelura-han

n/a n/a

Min 90% of complaints are resolved

% of com-plaints

95% >90% >90% >90% >90% n/a n/a

Participation rate of the poorest and vulnerable community members in planning and decision making meetings

% of poorest/vulnerable in meetings

54% (PNPM Urban III)

>40% >40% >40% >40% n/a n/a

Participation rate of wom-en in planning and deci-sion making meetings

% of women in meetings

47% (PNPM Urban III)

>40% >40% >40% >40% n/a n/a

Maintain reliable com-plaints resolution

% resolved complaints

98% 95% n/a 95% 95% 99% 4%

More interactive website # of visitors/hits per day

3,000 6,000 n/a 5,000 6,000 10,082 5,082

Strengthen implementa-tion support missions in Aceh (# of visits and tele-conferenced urban wards)

# of visits and tele-conferenced urban wards

0 32 n/a 16 32 19 3

Increase # of joint supervi-sion missions

# of mission/year

0 2 n/a 1 1 3 2

THE PSF makes significant investments in PNPM’s core

functions and systems in the way that they can be

sustained under a vision of more integrated local and

community–driven development. To date, the PSF has

disbursed more than US$33 million to provide supervisory

and coordination support, as well as technical assistance

to PNPM’s implementing agencies and oversight bodies.

PNPM employs more than 25,000 facilitators who are

the backbone of the program. In 2013, the PSF continued

to support a number of projects that are aimed to

enhance the quality of facilitation in the program.

The third phase of the Community Facilitators

Development project was designed to improve

the performance of facilitators by equipping them with

basic competencies through a recognized certification

process and continuous professional development.

To help address the chronic shortage of facilitators in

Papua and the specific challenges they face, the PSF

also launched a third wave of the Barefoot Engineers

training program in late 2012. By the end of March 2013,

300 young Papuan high school graduates were trained as

technical facilitators. Drawing on the findings of studies

and evaluations that poor and marginalized people are

still less likely to participate in PNPM programs, the need

for a more comprehensive approach to facilitation and

capacity–building was raised. The PSF launched an

experiment through the Creative Communities project

which uses creative expressions and community–based

cultural methodologies to revitalize the empowerment

process. The second phase of the project was designed

to yield stronger impacts through the use of community

theatre and video methodologies and the provision of

sub–grants to individuals and organizations to implement

other cultural activities that support PNPM goals. In 2013,

operational arrangements were set up in West Kalimantan,

West Sulawesi and NTB, and pilot activities will begin

in 2014.

The state of governance in PNPM is remarkably strong

but systems are under stress and there is no room for

complacency. In 2013, the PSF continued to increase

the reach and depth of the supervisory and fiduciary

WINDOW TWOIMPLEMENTATION AND COORDINATION SUPPORT

2008 2009 2010 2011 2012 2013

33

23

13

8

31

50

36

30

19

1312

Approved CommitmentsDisbursements

Figure13. Funds committed and disbursed under Window Two, 2008–2013 (US$ million)

Creative Communities 2 helps poor people and marginalized groups to voice their concerns in PNPM participatory planning processes.

66 | 2013 PSF PROGRESS REPORT

support to PNPM’s implementing agencies and

oversight bodies. Field analysts visited 223 sub–districts

in 2013 alone to provide portfolio–wide assistance and

to engage local stakeholders. Locations for supervision

continued to be prioritized on the basis of well–known risk

factors such as high disbursement, multiple block grants,

high turn–over of project facilitators and remote areas,

among many. A more proactive engagement with local

stakeholders through joint missions, in–depth thematic

reviews, and a collaborative preparation of action

plans appear to be paying off, with local governments

undertaking a number of corrective actions to address

implementation issues. A team of fiduciary specialists also

assists implementing agencies in assessing the robustness

of PNPM’s fiduciary controls; and resolving complaints and

corruption cases; and produces analyses on the program’s

governance framework. The implementation support

team provides national–level oversight and engages in

a policy dialogue with the implementing agencies of

PNPM Rural and PNPM Urban.

Building on field findings, PSF staff provided follow–up

technical assistance to PNPM implementing agencies

to: (i) strengthen their Management Information

Systems (MIS), Complaints Handling Systems (CHS)

and PNPM’s fiduciary controls; (ii) follow–up on audit

recommendations; (iii) review and update operational

policies and guidelines; and (iv) improve the system of

facilitator management, among many others. Technical

assistance was embedded in the Steering Committee of

PNPM (Pokja Pengendali) and the National Development

Planning Agency (Bappenas) to support their important

role as overseers of the program. Although this support

has contributed to moving some key reforms forward,

capacity issues at all levels continue to constrain

the quality of implementation. Clearly technical assistance,

however intensive, will not resolve capacity constraints

within implementing agencies, and actually may in some

cases entrench them by increasing reliance on external

support and substituting for their core roles. Addressing

these issues will require ensuring that adequate resources

and civil service personnel are made available for

the management of the program and a re–engineering of

management systems.

One of the most critical measures to strengthen

the management of PNPM is an improved MIS. In this

regard, the PSF has supported the design, installation, and

operation of an integrated MIS for all PNPM programs,

SIMPADU, which aims to manage data pertaining to

the implementation of PNPM Mandiri and thereby to

enable national and provincial government institutions

to more effectively monitor and plan community

empowerment and poverty reduction programs. In its

second phase, SIMPADU now receives data directly from

13 core and special programs within 13 pilot provinces.

With the upcoming completion of the redesigned

PNPM Rural MIS and the Revolving Loan Fund (RLF) MIS,

it is anticipated that the progress on the development

of SIMPADU and the quality of its function would

be enhanced.

For the local–level stakeholders, other capacity–building

measures were introduced and/or strengthened

during this year. Pro–Poor Planning, Budgeting

and Monitoring (P3BM) is a toolkit that allows local

governments to monitor and evaluate the extent to

which their development plans and budgets are pro–poor

and sensitive to socio–economic inequalities. Based on

the findings confirming its positive effects, the scale–up

of the P3BM project was approved in 2012 and was

accomplished in 2013 with the training of 1,174 local

government officials including 360 women (about

30 percent of the total). The Village Training Program

is an initiative designed to support the newly approved

Village Law (Undang–Undang 6 Tahun 2014 Tentang Desa),

which provides significantly increased financial resources

to villages. In response to the need to balance this new

power with improved capacities, the project will formulate

and pilot a training program to develop the capacities

of village authorities. In 2013, the project team provided

substantial inputs to the formulation of the Village Law

and associated discussions.

The PSF increasingly uses Information Communication

Technology (ICT ) to more effectively provide information;

to support the sharing of experiences among PNPM

stakeholders; and to promote transparency and

accountability within PNPM communities. The PNPM

Communications Team is working with the Government

to develop a communications platform for PNPM to

enhance the usability and online exposure of information

on PNPM programs and to strengthen the ability of

communities to ask questions and raise issues for debate,

particularly concerning budgets and service delivery,

and thus help close the feedback loop at the national

level. A network of 150 radios in nine provinces

facilitates discussion in communities and promotes

community–based monitoring of PNPM programs.

A photographic display of the Creative Communities 2 participatory video activity in North Lombok. Youths use newly acquired video skills to identify local developmental challenges.

68 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWSince it was first launched, PNPM has undergone

a significant expansion, with its coverage increasing from

2,600 sub–districts in 2008 to 5,146 sub–districts in 2013.

A number of studies and evaluations have indicated

that this rapid expansion is placing substantial strains on

the program’s management and governance framework.

To ensure that PNPM continues to achieve its stated

objective, which is for villagers to benefit from improved

local governance and socio–economic conditions, it was

recommended that intensified support be provided for

delivering quality supervision to the full coverage of

the program.

To facilitate this needed support, the Joint Management

Committee (JMC) approved the establishment of an

implementation support trust fund in May 2008.21 In

2010, two separate projects were designed to work

in close cooperation under the single trust fund: (i)

implementation support and monitoring of PNPM Rural

and the two Papua–based initiatives, PNPM Rural/RESPEK

and PNPM Agriculture; and (ii) field operations and

governance and fiduciary support. The implementation

support team provides national–level oversight; conducts

thematic reviews; and engages in a higher level policy

dialogue with PNPM Rural’s implementing agency,

the Directorate General of Community and Village

Empowerment (PMD) in the Ministry of Home Affairs and

with the Steering Committee of PNPM (Pokja Pengendali).

The project assists PMD to formulate recommendations,

strategies and policies on the basis of technical assistance

and thematic reviews. It also provides portfolio–wide

implementation assistance and engages with local–level

project stakeholders. The findings of field–level activities

are aggregated to assist PMD to identify and address

relevant issues as well as to determine opportunities for

developing pilot projects.

In 2011, five key areas were identified by the Government

and development partners as critical for the management

of the PNPM program: (i) the building of the capacities of

PMD to manage the program optimally; (ii) the redesign

of the Management Information System (MIS) in

order to provide reliable and comprehensive data; (iii)

the strengthening of the Complaint Handling System

(CHS) to detect, monitor and resolve fraud and corruption

cases; (iv) the reinforcement of formal and informal

fiduciary controls; and (v) improvements to the system for

the management of facilitators, especially in the areas of

training, career development and levels of remuneration.

In order to support these priorities, in 2013, the JMC

approved a proposal for integrating Implementation

Support to PSF, Field Operations, Governance and

Fiduciary Support, and Technical Assistance to Kemenko

Kesra and Bappenas. The main objective of combining

these separate trust funds is to increase the effectiveness

of the technical assistance to the supervision and

monitoring of PNPM.

PROGRESS IN 2013The PSF continued to provide support to PMD in the five

keys areas described above. The first stage of redeveloping

PNPM Rural’s MIS was completed, which includes

the redesigning of the system, the construction of a data

Summary Information

Status Task Team Leaders Implementing Agency

Active (PNPM Rural)

Sonya Woo (swoo1@worldbank.org)Sentot S. Satria (ssatria@worldbank.org)

PSF/Wrold Bank

Start Date to Closing Date

14 May 2008 to 31 March 2014

Geographic Coverage Approved Budget

National: 49,000 villages in 5,146 sub–districts in 391 districts in 32 provinces (in 2013)

US$ 5,120,000

WINDOW TWO

PNPM RURAL SUPERVISION AND MONITORING

21 In 2009, a separate activity was established for improving the supervision of PNPM Urban.

PNPM RURAL SUPERVISION AND MONITORING | 69

center building and the completion of the application

development process for the human resources, activity

and finance modules. Work on the governance and

knowledge management modules also commenced

while the already completed modules were reviewed and

tested by stakeholders with feed–back being provided to

the contracted developer, Datacomm, in December 2013.

In addition, the PSF supported PMD in the development

and implementation of the Revolving Loan Fund (RLF) MIS,

which was successfully tested in seven sub–districts in

the Special Region of Yogyakarta.

The revised web–based CHS became fully functional

in June 2013, enabling the recording and resolution

of complaints that could not previously be managed

at the community level. Once a complaint or

a case is entered into the system, data is interfaced to

a centralized database in real–time, reducing the delays

in the submission of complaints from the district to

the provincial and central levels. While allowing a CHS

specialist to effectively monitor the resolution of

complaints, the revised system also enables the public to

track the cases through the project website,22 increasing

the transparency and robustness of the CHS. As of

December 2013, 1,588 complaints had been received

and processed through the new system, of which

588 complaints (63 percent) had been resolved

or addressed.

The PSF produced and disseminated its PNPM Governance

Six–Monthly Update23 to the Government and its

counterpart. The report highlighted trends in corruption

case reporting and resolution and discussed key

governance initiatives and challenges. The PSF conducted

a detailed analysis of audit findings and coverage to assist

PMD to manage the auditing process and to improve its

quality. Issues identified as being most significant pertain

to, in order of importance, the management of RLF,

verification processes and procurement practices.

While the RLF sub–component of the PNPM Rural

program has enabled women to access low cost credit

and develop income generating activities, studies and

evaluations show that its scope of outreach has been

relatively narrow. To develop a strategy for more inclusive

livelihoods development under PNPM Rural, stakeholders

have initiated a review of local and global experiences

to enable poorer households to gain a better access

to financial services, technical assistance and jobs. A

dedicated team has been advising a Bappenas–led

working group on the design of a related pilot, which will

be tested in 2014.

For strengthening the activity management unit (Unit

Pengelola Kegitatan, UPK) oversight framework, in

February 2013, the project introduced the requirement

for the over–sight body of UPK (BP–UPK) to audit UPKs

each year and to submit audit reports to the Inter Village

Cooperative Board (BKAD). To enhance the effectiveness

of internal audit processes, standard operating procedures

were revised in March 2013 to mandate the inclusion of

certain critical practices areas such as the management of

RLF and financial management into regular internal audits.

However, due to capacity constraints, these procedures

are not yet being fully implemented by the RMC.

Revisions to the system of facilitator management

progressed well in 2013. To improve capacity building

activities, modules for pre–service training and refresher

training were revised at all levels. A trial of the revised

training modules was conducted in Makassar, South

Sulawesi, in November 2013, prior to which the project

developed instruments to assess the capacity of

stakeholders and local institutions at sub–district and

village levels. Revised remuneration policies for facilitators

were approved by the National Team for the Acceleration

of Poverty Reduction (TNP2K) and Pokja Pengendali in

October 2013 and will be made effective in 2014.

The PSF implementation team also helped revise

the PNPM Rural Technical Operations Manual (PTO).

The revised PTO includes references to sustainable

environmental management based on lessons learned

from PNPM Green; the application of cultural approaches

to facilitating higher levels of community participation

and inclusion; and a stronger focus on gender issues. The

PSF continued to provide support to PMD, Kemenko Kesra

and TNP2K to formulate the PNPM Roadmap agenda and

associated action plans and to draft the Village Law. To

support the formulation and implementation of the PNPM

Roadmap, Pokja Pengendali is currently designing a Better

Governance Action Plan to promote PNPM Roadmap Pillar

5 (Promoting Transparency and Accountability).

22 http://pnpm–perdesaan.or.id/1chs/23 http://www.pnpm–support.org/publication/

pnpm–governance–six–monthly–update–june–2013

70 | 2013 PSF PROGRESS REPORT

FUTURE PLANSIn 2014, special attention will be given to: (i) identifying

institutional arrangements for the future development

of the PNPM program; (ii) finalizing the Roadmap agenda

and related work plans and regulations to support

the implementation of the Village Law, together with

a transition strategy for this law; and (iii) finalizing and

disseminating the revised PTO and associated annexes.

To complete the implementation of the redesigned

MIS, the equipment required to support the operation

of the data center is currently being procured, with this

process expected to be completed in early 2014. The

RLF MIS has been launched in four pilot provinces since

November 2013, first being completed in the Special

Region of Yogyakarta and Central Java to be followed

by East Nusa Tenggara and West Sumatra and Central

Java. The MIS will assist the Government to improve

its monitoring, accounting and reporting capacities

and to enable the early detection of risks related to

RLF operations.

To improve facilitation under the PNPM Rural program,

the project team will ensure that the overall training

management system is made more effective through

a number of measures, including the implementation

of a revised remuneration policy for facilitators from

the first quarter of 2014 onwards. In addition, the team

will continue to work with government counterparts

to design a technical assistance program to facilitate

the implementation of the Village Law.

LESSON LEARNEDIn order to improve the program’s effectiveness, project

guidelines need to be developed and adjusted in

accordance with local needs and conditions and in

compliance with prevailing government regulations. To

this end, engagement with local and national legislators

is vital to gain political support for the sustainability

of the program. The participation of legislators in

field missions, discussions and workshops related to

implementation issues is an effective means for promoting

this engagement.

The expansion and increased complexity of the PNPM

Rural program demonstrate the vital need for a robust

system of oversight but the capacity of government

agencies to exercise this oversight is still limited.

To fill the capacity gap, the provision of technical

assistance to government agencies particularly, in

the form of high quality analytical reports on the project

performance monitoring, is critical for the Government

to implement its long term Roadmap for National

Community Development.

PNPM RURAL SUPERVISION AND MONITORING | 71

KEY RESULTS

Result Indicators

Unit of Mea-sure

Base-line

Total Target

Targets (cumulative) Cumulative Progress as of Dec 31, 2013

Differ-ence with cumulative target for 20132011 2012 2013 2014 2015

Project Development Objective: To provide technical support, guidance and supervision to the overall PNPM Rural activi-ties through field–based monitoring and support, governance, fiduciary, M&E.

PMD’s capacity to manage the various PNPM oper-ations under its mandate is enhanced

n/a PNPM oper-ations in PMD man-aged in silos

Establish-ment of a Joint Secretariat; MIS & CHS overhauled

– Prepara-tions for Joint Sec-retariat;Manage-ment Review

Joint Secretar-iat estab-lished

Com-pletion of MIS & CHS over-haul

– MIS proto-type has been tested; Key Perfor-mance and control indica-tors completed; CHS redesign completed.

One delay; others on track (the necessity of establishing join secre-tariat will be reviewed.)

Field supervi-sion, system reviews & studies help shape the policy dialogue on PNPM Rural and PNPM Mandiri

n/a n/a Field find-ings trans-late into a strategic reform agenda for PNPM Rural; PSF inputs incorpo-rated into the PNPM Roadmap

Collab-orative defi-nition of key reform areas to strength-en PNPM Rural gover-nance

PSF inputs incorpo-rated in the PNPM Roadmap; Studies in-form PNPM 2012–2014 design improve-ments

Imple-men-tation support to the PNPM Roadmap provided, including action plans and pilots

Contin-ues

PNPM Road-map action plan and pilots are underway; 3 Aide Mem-oires complet-ed for Post Disaster, ISM (Implementa-tion Support Mission), and Safeguards.

On track.

# of risk–based super-vision p.a

# of mis-sions

4 p.a. (2011)

6 p.a. 4 6 12 18 – 6 On target.

Strategy for economic inclusion developed

Status n/a Strategy for economic inclusion developed by 2013

– Concept paper developed through workshops w/stake-holders

Strategy devel-oped

– – RLF is fully implemented in 46 sub–dis-tricts, 8 districts in 4 provinces (East Nusa Tenggara, West Sumatera, Central Java, Yogyakarta).

On target.

Impact of a more com-prehensive approach to capacity building & facilitation is demonstrat-ed

n/a n/a Capacity build-ing and facilitation acknowl-edged in law

– EEE proposal fi-nalized for review by the JMC

Provide input to the Village Law

PNPM informs the imple-men-tation of the Village Law

PNPM fully in-tegrated into the Village Law

Policy and op-erational advice on the Village Law.

Target revised: to provide support to main-streaming PNPM in the Village Law.

Joint gov-ernment and donor missions

mis-sions p.a.

2 (2011) 3 2 3 6 9 – 10 Target well achieved.

Customized approach de-veloped for remote areas (e.g., Eastern Indonesia), starting with Papua

Status – Customized approach for remote areas, start-ing with Papua

– Joint Pap-ua Working Group es-tablished;

Cus-tomized approach dis-cussed, final-ized & endorsed by Pokja Pengen-dali

– – Working group established; action plans for custom-ized approach for remote areas underway (e.g. 6 strate-gic plans for engagements in Papua; new policy for transportation allowance in remote areas.)

On target.

72 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWThe massive scale up of PNPM as a nationwide program

has placed strain on the program’s management and

governance frameworks, increasing the need for strong

oversight by multiple stakeholders. The PSF provides

support to the Indonesian Government for strengthening

the management and oversight systems of PNPM

programs. Although a number of PSF projects contribute

to the achievement of this objective, a dedicated team

of field analysts was created in January 2010 in order

to provide portfolio–wide implementation assistance;

to engage with local level project stakeholders; and to

build government capacities to undertake integrated,

risk–based supervision. The project achieves these

goals by: (i) conducting field supervision on overall

implementation performance, including fiduciary,

procurement and governance aspects; (ii) providing

technical assistance and follow–up measures related

to systemic issues; and (iii) fostering higher levels

of stakeholder involvement in field supervision and

governance and anti–corruption efforts.

The field operations team works closely with

the governance and fiduciary team in assessing

the strength of PNPM’s formal and informal controls

over the programs fiduciary system; supporting

the Government in measures to resolve complaints

and corruption cases; and producing in–depth analyses

on the program’s governance framework to propose

continuous improvements. Both teams coordinate their

work with the PNPM Rural Supervision and Monitoring

team, which provides national–level oversight; conducts

thematic reviews; and engages in a high–level policy

dialogue with PNPM Rural’s implementing agency,

the Directorate General of Village Community and

Village Empowerment (PMD). The project produces

field–level analyses and provides aggregated outcomes

to PNPM’s oversight bodies, implementing agencies and

development partners to identify areas for improvement

and opportunities for developing pilot activities. The

project also assists the implementation of numerous

thematic reviews conducted by other PSF teams. The

findings of these supervision activities and studies serve

as input for formulating action plans, technical assistance

and implementation support programs.

PROGRESS IN 2013In 2013, field supervision covered the activities of

558 sub–projects in 592 villages, 223 sub–districts,

108 districts and 32 provinces. Locations for visits were

selected based on the analysis of known risk factors

directly associated with the results framework’s key

performance indicators, prioritizing sub–projects

demonstrating a high staff turnover and empty positions,

receiving multiple block grants and showing large gaps

between disbursement and absorption; and remote

areas and/or infrequently visited areas, among other

factors. Project findings were shared with all relevant

stakeholders through a number of means, including

back to office reports, thematic workshops, provincial

and national coordination meetings and issue notes.

All of these outputs serve as inputs for the ongoing

measures to strengthen PNPM’s management and

governance framework.

Summary Information

Status Task Team Leaders Implementing Agency

Active (PNPM Rural)

Sentot Surya Satria (ssatria@worldbank.org)

PSF/World Bank

Start Date to Closing Date

1 March 2011 to 31 March 2014

Geographic Coverage Approved Budget

32 provinces, 398 districts, 6,008 sub–districts

US$ 2,530,000

WINDOW TWO

PNPM FIELD OPERATIONS AND GOVERNANCE AND FIDUCIARY SUPPORT

PNPM FIELD OPERATIONS AND GOVERNANCE AND FIDUCIARY SUPPORT | 73

Field findings have been complemented by in–depth

studies and thematic reviews on specific aspects of

the PNPM programs.24 Recommendations from these

studies and reviews have been vital for promoting plans

to increase the level of remuneration for facilitators, to

fill vacant facilitator and consultant positions in remote

areas and to implement corrective actions to resolve

fraud cases. Implementation progress on some of these

fronts has been slow but continuous improvements in

the broader PNPM framework are being made through

the recent field mission for PNPM Rural.

The project continued to provide technical assistance

to PMD in its endeavors to overhaul PNPM Rural’s

web–based Management Information System (MIS) and

Complaints–Handling System (CHS), with both these

systems becoming fully functional in 2013. The project

also supported efforts to develop and revise standard

operating procedures and program guidelines for PNPM

Rural and PNPM Genarasi, in accordance with operational

recommendations. Additionally the project facilitated

regular assessments of PNPM Rural’s formal and informal

controls, and supported the implementation of corrective

actions and the resolution of complaints and corruption

cases. Consequently, 77 percent of 1,202 agreed–upon

corrective actions were implemented by the national and

local governments in 2013.

The project provided updates to government and

the other stakeholders, notably, PMD, Kemenko Kesra and

National Team for the Acceleration of Poverty Reduction

(TNP2K), on a quarterly basis to facilitate improvements

to the performance of sub–projects. The project also

supported the preparation of the PNPM Roadmap

through a number of activities, including comparative

field studies covering 10 PNPM–type programs in two

provinces, six districts, six sub–districts and 12 villages. The

preparation process also involved consultation workshops

and seminars at the national and sub–national levels;

assessments conducted in several provinces; and regular

discussions on field supervision findings. The results of

these activities contributed to the consolidation and

integration of community development programs.

FUTURE PLANSIn 2014, the project’s main focus will be on providing

support to the Government for the development and

implementation of the new Village Law. In particular,

the project will strive to facilitate consultations

at the sub–national level and to formulate technical

guidelines related to the Law.

The project will seek to maintain its current level of

coverage, both in terms of the range of programs

and of geographical areas visited. Specific activities

planned for 2014, in addition to the routine field–level

supervision and ongoing dialogue with national and

sub–national stakeholders, include: (i) developing

a field–based monitoring results framework; (ii) improving

financial management and fiduciary controls; (iii)

carying out a financial management review of the PSF

portfolio; (iv) providing thematic supervision and

monitoring covering revolving loan funds, governance,

safeguards, inclusion, women’s participation and MIS;

(v) reviewing the administrative service consultant

firms’ performance; (vi) providing technical assistance to

implementing agencies.

24 The examples for 2013 include studies on the sustainability of local institutions in 11 PNPM programs, a review of women’s participation in PNPM Rural and a review of Women’s Empowerment Program in Papua and Papua Barat, among many.

74 | 2013 PSF PROGRESS REPORT

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative) Cumulative Progress as of Dec 31, 2013

Difference with cumu-lative target for 2013

Before 2011 2011 2012 2013 2014 2015

Project Development Objective: To respond to the increased need for oversight and action by multiple stakeholders under a scaled up program, while building government capacity to undertake integrated, risk–based supervision in support of its priority objectives.

# of corrective actions deliv-ered

# of ac-tions

– 1,200 50 300 600 800 1,000 1,200 897 97

# of meetings/workshops to discuss systemic implementa-tion issues at national and regional levels

# of meet-ings

– 350 30 94 158 222 286 350 182 –40 (61 dis-cussions took place in 2013.)

# of provinces, districts , sub–district visited at least once a year

Provinces – 32 32 32 32 32 32 32 32 On track.

Districts 150 100 150 150 150 150 150 134 –16

Sub–dis-tricts

300 200 300 300 300 300 300 230 –70

# of joint su-pervision mis-sions involving National and Local Govern-ments

# of joint missions

– 210 10 50 90 130 170 210 126 –4 (39 mis-sions con-ducted in 2013.)

# of thematic reviews

# of reviews supported

– 14 2 4 7 10 12 14 19 9 (Based on request)

# of action plans/pro-gram quality improvement plans

# of plans – 60 5 20 30 40 50 60 50 10

# and type of SOPs/Guide-line revised with inputs from field supervision

# of docu-ments

– 26 4 10 14 18 22 26 20 2

# Regional/Provincial workshop with Local Govern-ment, Local Legislature , NGOs, CSOs, Media , Univer-sity etc.

# of work-shops

– 20 – 4 8 12 16 20 29 17 (26 deliv-ered in 2013 alone. Join activity with Pokja Pengen-dali.)

# and type of cross visits/comparative studies

# of cross–visits

– 20 – 4 8 12 16 20 2 –10 (Two delivered in 2013 include comparative field study with TNP2K and 9 line ministries agencies.)

KEY RESULTS

TECHNICAL ASSISTANCE TO BAPPENAS AND POKJA PENGENDALI | 75

PROJECT OVERVIEWThe scale up of the PNPM program has created special

challenges for the Government agencies responsible for

its management, particularly the Steering Committee

of PNPM (Pokja Pengendali) and the National

Development Planning Agency (Bappenas). Pokja

Pengendali is responsible for the overall management

and implementation of PNPM Mandiri, while Bappenas

serves as the Chair of the PSF, leading the planning and

direction of PNPM Mandiri. To address the challenges

inherent in the management of a nation–wide program,

a secretariat has been established under the coordination

of the Deputy Minister for the Coordination of Poverty

Reduction. The purpose of this secretariat is to

conduct analyses and to provide administrative and

technical services.

The PSF supports the daily operations of Pokja Pengendali,

the responsibilities of which include: (i) the formulation

of policy recommendations; (ii) the monitoring and

oversight of PNPM Mandiri throughout its project

cycle; (iii) the preparation of reports related to PNPM

Mandiri for cabinet meetings, ministerial–level meetings,

and the public; (iv) the supervision of line ministries’

integration of community–driven–development initiatives

and principles; (v) the coordination of complaints

handling with line agencies, executive staff, and

enforcement agencies; and (vi) the implementation of

public campaigns and socialization. For Bappenas with its

special role in the planning, budgeting, monitoring and

evaluation of PNPM Mandiri, the PSF provides specific

support, including the provision of technical staff and

training intended to improve the quality of planning

and monitoring poverty reduction policy and programs.

In 2013, the project was extended until March 2014 to

continue to support Pokja Pengendali and Bappenas while

PNPM Operation, Delivery and Oversight (ODO) trust fund

was being prepared to become operational.

PROGRESS IN 2013Pokja Pengendali: In 2013, Pokja Pengendali continued

to exercise oversight, management and coordination

functions across the PNPM program by: (i) leading

the preparation and implementation of the PNPM

Roadmap; (ii) facilitating the appraisal and finalization

of the PNPM Rural 2012–2015 project; (iii) preparing

the PNPM village integration guidelines to improve

participatory planning at the village level across PNPM

programs; (iv) supervising work associated with improving

the revolving loan fund (RLF) component of the PNPM

Rural and PNPM Urban programs; (v) implementing an

Memorandum of Understanding (MoU) with Bank Rakyat

Indonesia (BRI) to improve the capacity of the RLF and

to empower a greater number of PNPM beneficiaries

to expand their businesses; (vi) redesigning the PNPM

Mandiri official website and adding new features;

(vii) improving the use of social media networks for

communicating information related to PNPM Mandiri; (viii)

supporting good governance and building partnerships

with the Corruption Eradication Commission (KPK) and

the Development and Finance Surveillance Agency (BPKP)

to strengthen the prevention, control, and handling of

corruption within the PNPM Mandiri; and (ix) reinforcing

the overall monitoring and evaluation systems of PNPM

Mandiri programs.

In particular, with the proliferation of PNPM programs,

the need for improved monitoring and targeting

has been identified by the Government as a priority.

To address this, in 2013, Pokja Pengendali worked to

facilitate the achievement of Agenda Four of the PNPM

Roadmap, which focuses on developing an integrated

PNPM database to contribute to improved targeting and

monitoring. Pokja Pengendali developed work plans,

compiled data related to the activity implementation

stream, and formulated terms of reference.

Summary Information

Status Task Team Leaders Implementing Agency

Active (PNPM Rural)

Sentot Satria (ssatria@worldbank.org)

PSF/World Bank

Start Date to Closing Date

21 September 2011 to 31 March 2014

Geographic Coverage Approved Budget

National US$ 1,661,867

WINDOW TWO

TECHNICAL ASSISTANCE TO BAPPENAS AND POKJA PENGENDALI

76 | 2013 PSF PROGRESS REPORT

Regarding the determination of the location and

allocation of community block grants (BLM) under

PNPM, an assessment was conducted and presented

at a workshop on 22 May 2013, where it was

recommended that: (i) PNPM Mandiri consider the poverty

of consumption and non–factor consumption for

targeting; and (ii) the Regional Poverty Index (IKW) be

selected as an appropriate composite index for better

determining the allocation of BLM. On 23 July 2013, Pokja

Pengendali met to discuss these issues, with agreement

that Bappenas would lead the formation of the technical

implementation team responsible for (i) conducting

studies, technical procedures and socialization preparation

in the last quarter of 2013 and (ii) conducting socialization

activities among local government stakeholders in early

2014. These activities will be followed by the development

of a targeting strategy using the Integrated Village Social

Map to improve the accuracy of mapping poor regions.

In addition, the project provided a number of

implementation support to Pokja Pengendali, for instance,

in conducting a study and pilot to test linkages between

RLFs with banking and non–banking financial institutions;

and in facilitating an MoU between six ministries and BRI

in cities including Denpasar and Blitar, and in the district

of Tabanan.

Bappenas: In 2013, the project worked with relevant

technical ministries and working groups in order to

prepare a plan for allocating BLM in 2013, which will

determine the allocation to local governments. The

project coordinated with the technical team to prepare

a payroll standard for facilitators, to be accommodated

within district government budgets (APBN). The project

also worked with Bappenas to facilitate the monitoring

and supervision of the RLF pilot project and all of its

components; to supervise and monitor the progress

of community facilitator certification; to supervise

the preparation of an impact evaluation of the PNPM

Generasi program; to create a new component to

the PNPM Generasi program to specifically address

the issue of stunting among children under the age of

five; and to prepare a Regional Poverty Index to facilitate

the allocation of BLM.

FUTURE PLANSPokja Pengendali: The project will continue to address

recurrent and systemic issues facing PNPM such as: (i)

the increased number of cases involving corruption

and the misuse of PNPM funds; (ii) the lack of awareness

and involvement by communities in PNPM Mandiri

programs, particularly in terms of exercising oversight

over the use of BLM funds; and (iii) the limited spill–over

effects of the measures aimed to ensure transparency

and accountability within the PNPM Mandiri program on

the more general systems of governance. Furthermore,

in order to achieve the stated Roadmap goal of ensuring

the sustainability of community institutions, it will be vital

to guarantee the sustainability of RLFs under PNPM. While

policy makers are committed to achieving this through

the development of linkages between the revolving fund

beneficiary groups and financial institutions and local

government agencies responsible for service delivery,

defining the exact nature of the linkages remains subject

to further discussion.

Bappenas: In 2014, the project will focus on: (i) facilitating

quick win activities to support a livelihoods approach

through the Master Plan for the Acceleration and

Expansion of Poverty Reduction (MP3KI); (ii) continuing

to support the supervision of the RLF program and

the expansion of a pilot project to nationwide scale;

(iii) providing support for the community facilitator

certification process; and (iv) developing a standard

for organizing facilitator payrolls and integrating this

standard into regular budget allocation processes;

and (v) coordinating the implementation of the PNPM

Generasi program.

LESSONS LEARNEDOne of the major lessons learned from

the implementation of this project relates to the critical

need for policy makers and program implementers to

have access to reliable data as a basis to formulate, revise

and implement community empowerment and poverty

reduction programs efficiently and effectively. In particular,

Pokja Pengendali has been constrained by the lack

of access to an integrated database system covering

the full range of programs and activities implemented

under PNPM Mandiri. Addressing this limitation will

continue to be a major priority in 2014. The completion

of the Management Information System for PNPM Rural

is expected to relieve the major constraint and thus

to enable government institutions to implement and

monitor relevant programs more effectively.

TECHNICAL ASSISTANCE TO BAPPENAS AND POKJA PENGENDALI | 77

Result Indicators BaselineTotal Target

Targets Delivered in 2013 (only)

Cumulative Progress as of Dec 31, 2013

Difference with cumu-lative target for 20132011 2012 2013 2014

Project Development Objective: To provide support to Bappenas for improving the quality of planning, bud-geting, monitoring and evaluation process of poverty reduction policy and programs.

Number of analysts providing technical assistance

0 2 2 2 3 3 0 2 –1

Number of staff trained in the formulation of poverty reduction poli-cies and programs

0 5 to 6 n/a 5 to 6

5 to 6

5 to 6 0 1 –5

Number of staff attend-ing seminars/work-shops on the planning/monitoring of poverty programs

0 5 to 6 n/a 5 to 6

5 to 6

5 to 6 0 0 –5

Project Development Objective: To provide support to Pokja Pengendali in the aspects of coordination, man-agement and oversight of PNPM Mandiri.

# of policy notes pre-pared

0 2 3 6 11 n/a 5 14 3 (5 delivered in 2013 alone.)

# of Districts/Cities that socialized with cost shar-ing policy annually

0 497 497 496 505 n/a 505 505 0

# of action plans for the PNPM Roadmap has been prepared with stakeholder

0 125 0 125 137 n/a 11 136 –1

# of participants in Na-tional Congress of PNPM Mandiri

0 600 250 600 600 n/a 0 600 Temnas is scheduled in May 2014.

# of provinces involved in the preparation con-cept of strengthening role of local government in PNPM Mandiri

0 5 5 5 5 n/a 9 9 4

KEY RESULTS

78 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWPNPM Mandiri is a constantly evolving, innovative program

that requires an intensive communications process if

members of the community, press, government officials,

academics, activists, development workers and other

key stakeholders are to stay informed of the program’s

development and to support efforts to implement its

activities. In order to assist the Government to develop

a communications strategy that supports this process,

the PSF communications program was established in

2008. The main components of this strategy include

the dissemination of information, the development of

social accountability mechanisms, and capacity–building

and enhanced knowledge sharing among all PNPM

stakeholders. The communications program contributes

to the strategy by: (i) building the capacity of government

institutions involved in PNPM in the area of information

and communications; (ii) supporting various stakeholders

to codify, organize and share their knowledge through

innovative communication tools and approaches;

and (iii) developing accountability mechanisms to

strengthen the voice of communities and their members

and to empower them to express their opinions and

aspirations, to become more actively engaged in issues

that affect their lives and to hold the program’s key

actors accountable.

The need for a strong communication strategy has

become even more vital with the development of

the PNPM Roadmap; the broader Master Plan for

the Acceleration of Economic Development (MP3EI); and

its companion, the Master Plan for the Acceleration and

Expansion of Poverty Reduction (MP3KI). Consequently,

the need for extra effort has emerged to ensure that

these new plans are understood by both program

actors and stakeholders and the general public.

To facilitate the development and implementation

of the strategy, the PNPM Communication Forum,

which is headed by the Ministry of Communication

and Information Technology, under the leadership of

the Steering Committee of PNPM (Pokja Pengendali) and

the Coordinating Ministry of People’s Welfare (Menko

Kesra), was established in 2012.

PROGRESS IN 2013Based on the PNPM Roadmap and in anticipation of

the challenging circumstances created by the presidential

elections in 2014, the PNPM Communication Forum

finalized a new PNPM Communication Strategy at the end

of 2013. The new strategy underlined the role of PSF

communications team in supporting the Government’s

endeavors to reach more focused audiences, including

potential key policy makers and key persons in various

sectors such as media, universities and CSOs, and

to garner their support for the implementation of

the PNPM Roadmap.

Summary Information

Status Task Team Leaders Implementing Agency

Active Caroline Mary Sage (csage@worldbank.org)

PSF/World Bank

Start Date to Closing Date

13 June 2008 to 31 December 2017

Geographic Coverage Approved Budget

National US$ 4,350,000

WINDOW TWO

PNPM COMMUNICATIONS

PNPM COMMUNICATIONS | 79

Forum and the PNPM Communication Strategy,

the communications team continued to assist various

stakeholders to develop innovative communication

approaches and improve accountability mechanisms

to facilitate communities and the general public to

more actively engage in the PNPM process. Among

other activities, this involved the preparation and

dissemination of seven summaries of PNPM studies and

evaluations and of the Safeguard guidebook, in addition

to 36 publications related to PNPM Mandiri and/or

community empowerment. The communications team

also facilitated a partnership between the Directorate

General of Community and Village Empowerment (PMD)

and Independent Research Advisory Indonesia (IRAI), an

independent research and data publication organization,

to publish six advertorial articles on matters related

to PNPM Rural, Generasi and Creative Communities in

Tempo Magazine.25

The communications team used a number of media to

stimulate critical awareness regarding PNPM programs and

community empowerment in general. PSF social media

accounts were subscribed to by 1,500 followers, with

more than 3,000 engagements per month. The increased

interest in PNPM was also demonstrated by the high

volume of visits to the various websites related to

the program. The PSF website received more than

7,000 visitors per month, with its library website receiving

more than 4,000 visitors per month. The team monitored

leading national and local media outlets to find more than

2,000 articles in print and online on subjects related to

PNPM in the period up until November 2013.

Over the year, the communications team increasingly

utilized information and communications technologies

(ICT ) to enhance the impact of communications and

learning activities. The team facilitated the establishment

of partnerships with local CSOs such as Combine Resource

Institution (CRI) and Bakti to encourage 150 community

radio stations in 15 provinces to utilize radio programs,

websites, social media, and SMS gateway as channels

through which community members could submit

complaints and questions. In addition, the team also

partnered with the community of computer developers

to explore the possibility of developing a platform (Jalin

Suara) that combines maps, stories, beneficiary feedback

and citizen engagement. The free and open platform has

been developed and is now available at Github (https://

github.com/qbl/jalin–suara/wiki).

In addition to making information and data readily

available to a range of stakeholders, the communications

team also seeks to generate in–depth analysis and public

debate on PNPM. The program placed an increased

emphasis on supporting learning and knowledge sharing

between government agencies and other partners, both

within Indonesia and internationally. The team supported

important national events, such as the Declaration

of Zero Tolerance of Corruption in PNPM Mandiri in

Lampung and facilitated the preparation of National

Congress and National Puppet Show (Pagelaran Wayang

Orang). The team facilitated South–South Exchanges

with Nepal, Laos, Afghanistan, Pakistan, Myanmar, Timor

Leste and Morocco. The team also supported study

visits such as the International Community–Driven

Development Conference hosted by the World Bank in

October 2013 and the Comparative Study of the National

Team for the Acceleration of Poverty Reduction

(TNP2K) and Asia–Pacific Rural and Agricultural Credit

Association (APRACA).

FUTURE PLANSFollowing the formulation of the new PNPM

Communication Strategy in 2013, the communication

team will continue to support Pokja Pengendali and

strengthen PNPM’s communications, social accountability

mechanisms and learning processes. Integrated

communication activities have been planned as below:

zz Formulation of bi–monthly policy brief series with

six planned themes that are central to the PNPM

Roadmap, the Village Law and MP3KI. The content

of the policy brief series will draw on the analytical

studies related to PNPM Mandiri and other

recommendations relevant to the themes;

zz The team will also assist the PNPM Mandiri oversight

committee in issuing and distributing regular press

releases on matters related to policy briefs; and

zz The team will continue to engage with representatives

of the media by facilitating their participation in field

visits and editors’ gatherings.25 For six articles check: (i) http://psflibrary.org/

web/?q=catalog&recid=6638; (ii) http://psflibrary.org/web/?q=catalog&recid=6768; (iii) http://psflibrary.org/web/?q=catalog&recid=6680; (iv) http://psflibrary.org/web/?q=catalog&recid=6776; (v) http://psflibrary.org/web/?q=catalog&recid=6840; (vi) http://psflibrary.org/web/?q=catalog&recid=6850

80 | 2013 PSF PROGRESS REPORT

Beyond these special efforts, the team will focus more on

safeguarding transparency and accountability of PNPM

Mandiri, including the monitoring of the use of PNPM

Mandiri in political campaign, through its partnership

with community radio. Events planned for 2014 include

a national puppet show (wayang) and the 2014 National

Congress. With the evolution of the PNPM program and

other community empowerment initiatives throughout

2014, knowledge sharing will remain an important focus.

LESSONS LEARNEDOutreach has remained significantly focused on poverty

alleviation actors, such as PNPM related ministries

and TNP2K. Despite general support from community

development actors, there is still a noticeable gap in terms

of the support from the public, especially key opinion

leaders of government agencies and parliamentarians as

well as the community of practice within academia and

development actors at regional, national and international

levels. A general lack of familiarity with PNPM has been

observed among community stakeholders, who have

never been directly involved in PNPM. Given the incoming

parliamentary and presidential elections in 2014 and

uncertainty around the future of PNPM, the need to scale

up public outreach and promote the creation of PNPM

Communities of Practice is ever more acute for ensuring

the program’s sustainability.

Women from Serang, Banten share their community empowerment experience to community representatives from Afghanistan through South–South Knowledge Exchange activities.

PNPM supports Indonesia's community media dream to have power in advocating community rights to stated opinion, build various contents to accommodate the diversity of community, and encourage public service improvement in a low cost maintenance and easy access information system.

82 | 2013 PSF PROGRESS REPORT

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative)

Cumu-lative Progress as of Dec 31, 2013

Difference with cumu-lative target for 20132011 2012 2013 2014 2015

Project Development Objective: To strengthen PNPM’s overarching communications, social accountability and learning platform which supports continuous program improvements through information dissemination, devel-opment of social accountability mechanism, capacity–building and enhanced knowledge sharing among all PNPM stakeholders.

Media or-ganizations participat-ing in field visits

# of media organiza-tions/year

23 30 25 28 30 30 30 50/year Target over achieved.

PNPM pub-licity pub-lished and advertised in a variety of media

# publicity (free adver-tisement); # advertise-ment

2512

35 0

25 12

25 0

27 0

30 0

35 0

77 pub-licity 27 advertise-ments

On target.

Commu-nity media engaged in information dissemi-nation & communi-ty–driven monitoring

# of com-munity media and association of com-munity radio (JRK) engaged & provinces covered

149 com-munity radio and 9 JRK in 9 provinc-es

150 com-munity radio and 15 JRK in 15 prov-inces

149 com-munity radio and 9 JRK in 9 prov-inces

150 com-munity radio and 12 JRK in 12 prov-inces

150 com-munity radio and 15 JRK in 15 provinc-es

150 com-munity radio and 15 JRK in 15 prov-inces

150 com-munity radio and 15 JRK in 15 prov-inces

142 com-munity radio, 15 JRK in 15 provinces and na-tional level JRK

8 community radio (Tech-nical prob-lems at eight community radio stations forced them to withdraw from the program.)

Media Moni-toring

# of media sources monitored & articles analyzed for PNPM’s oversight bodies

49 media daily 1,300 articles; 51+ me-dia 2,200 articles

51 con-ven-tional media + social media 2,200 articles

49 1,300

51 1,800

51 2,000

51+so-cial media 2,200

51+so-cial media 2,200

51 conven-tional me-dia + over 30 online media + social me-dia annu-ally; 2,000 articles per year

Technical problems with a moni-toring device for 2 months (July–Au-gust 2013) decreased numbers of articles mon-itored.

Publica-tions/Re-ports

# of titles & exemplars disseminat-ed per year

25 titles 20,500 exem-plars

30 titles & 5,000 exem-plars

25 & 20,500

25 titles & 10,000 exem-plars

30 titles & 5,000 ex-emplars

30 titles & 5,000 exem-plars

30 titles & 5,000 exem-plars

111 titles & 35,200 exemplars for 4 years

Target for exemplars is reduced reflecting the increase in digital dis-semination.

Learning events/workshop/exhibitions

# of events/workshops/exhibitions

3 annu-ally

10 an-nually

3 3 5 7 10 14 The PSF received an increasing number of invitations to participate in learning events.

Visits/study tours from foreign del-egation

# of visits 4 annu-ally

5 annu-ally +1 Govern-ment of Indo-nesia visits to foreign coun-tries

4 5 in-coming + 1 out-going

5 incom-ing + 1 outgo-ing

5 in-coming + 1 out-going

5 in-coming + 1 out-going

10 incom-ing + 1 outgoing

Target well achieved

KEY RESULTS

PSF SECRETARIAT | 83

PROJECT RATIONALE AND OVERVIEWThe PSF Secretariat provides operational and

administrative support to the PSF to sustain an effective

framework for the implementation of PNPM Mandiri.

In addition to supporting the management of the PSF

and coordinating the Joint Management Committee

(JMC), the Secretariat provides fiduciary oversight and

reports on the progress for all PSF programs. Key activities

undertaken by the Secretariat include: (i) administering

grant agreements issued through the PSF Trust Fund;

(ii) coordinating program supervision missions and

appraisals; (iii) providing operational and technical

assistance to agencies managing PNPM Mandiri programs

at the national, provincial and district levels; (iv) preparing

financial reports and quarterly and annual progress

reports26; and (v) documenting and disseminating minutes

of JMC meetings.

Figure 14. Donor partner contributions: 2008–2013 (Calendar Year (CY) and cumulative; in US$ million)

The Secretariat supports the growth of the PSF

portfolio, the total value of commitments which has

increased from US$37 million in 2008 to US$343 million

in 2013, and manages the overall implementation of

the portfolio. More than 77 percent of PSF resources are

used for the projects implemented by the Indonesian

Government and Indonesian civil society organizations.

To support the growth and diversification of the portfolio,

the Secretariat focuses on enhancing client engagements

with the JMC and other PNPM stakeholders; maintaining

the management and quality control systems to

Summary Information

Status Task Team Leaders Implementing Agency

Active Kevin Tomlinson (ktomlinson@worldbank.org)

PSF/World Bank

Start Date to Closing Date

31 January 2008 to 31 March 2018

Geographic Coverage Approved Budget

National US$ 11,429,468

WINDOW TWO

PSF SECRETARIAT

2008 2009 2010 2011 2012 2013

365

259

207

131

4123

106

527690

1823

CY ContributionsCumulative Contribution

26 The Secretariat reports on the progress of the portfolio by producing quarterly updates and provides a comprehensive summary of the development outcomes and lessons learned from a given year in the form of an annual progress report. Quarterly updates (2011–2013) and annual progress reports (2008–2013) can be downloaded from: http://www.pnpm–support.org/about/about–jmc.

84 | 2013 PSF PROGRESS REPORT

successfully implement PSF–financed activities; and

ensuring the overall effectiveness of the development and

coordination platform. The Secretariat also supports efforts

to respond to the increased demands for PSF’s operational

and technical services and to ensure PSF’s sustainability

into the future.

PROGRESS IN 2013In early 2013, following a Bappenas review of the PSF

performance to determine whether the PSF would be

the appropriate platform to support the Government

in its implementation of PNPM in the future, the JMC

agreed on a list of actions to ensure that it fulfils this role.

These actions included: (i) making Bappenas the sole

Chair of the JMC; (ii) enhancing the participation of

the Government in the JMC by including the Ministry

of Home Affairs (MoHA), which is responsible for

the implementation of PNPM Rural, and the Ministry

of Public Works (MPW), which is responsible for

the implementation of PNPM Urban, as official members

of the JMC; (iii) extending the PSF to 2018; (iv) preparing

a 2013–2015 strategy and pipeline articulating how

the PSF will support the implementation of the PNPM

Roadmap, the Master Plan for the Acceleration and

Expansion of Poverty Reduction (MP3KI), and

the 2013–2015 medium–term expenditure plan (RPJM);

and (v) contracting a firm to support the scale–up

of the PSF to respond to the increased demands for

its services.

Throughout the year, the Secretariat focused on

the organization and implementation of these activities.

It supported the strengthening of the institutional

sustainability by finalizing agreements with donor partners

to extend the PSF Multi Donor Trust Fund until June 30,

2018. On the basis of the decisions made by the JMC,

the Secretariat worked to confirm Bappenas’ role as

the sole Chair of the JMC and to facilitate the inclusion

of MoHA and MWP as official members of the JMC. The

Secretariat, in coordination with JMC members and other

PNPM stakeholders, also prepared and presented the PSF

Strategy: A Framework for Engagement 2013–2015, together

with an indicative project pipeline. The JMC approved this

strategy in July 2013.

Progress on the contracting of a firm to support

the scale–up of the PSF portfolio has been slower than

anticipated. Initially, it was expected that the World Bank

as the trustee of the PSF Trust Fund would procure a firm

that would hire the necessary staff to provide support for

the implementation of PNPM and PSF grants. However,

after conducting a process of due diligence, the World

Bank informed the JMC that it could not hire a firm able to

fulfil all the required functions because of the contingent

liabilities it would entail. In response, the JMC agreed that

a PSF Transition Working Group, under the leadership of

Bappenas and the Steering Committee of PNPM (Pokja

Pengendali), would identify which functions could stay

with the PSF; which should be transferred to a Bank–hired

firm; and which could be transferred to a managing

2008 2009 2010 2011 2012 2013

2 9

36

122

181

246

Figure 15. Total disbursements: 2008–2013 (cumulative; in US$ million)

Figure 16. Approved commitments (in US$ million)

2008 2009 2010 2011 2012 2013

343305

220

90

4237

PSF SECRETARIAT | 85

contractor hired by the Australian Department of Foreign

Affairs and Trade (DFAT ). The Secretariat was asked to

facilitate the proceedings of the working group and

support any subsequent transition arrangements.

The Secretariat continued to provide financial and

technical support to mobilize resources to finance existing

and new projects. Notably, the Secretariat facilitated

the inclusion of Millennium Challenge Account–Indonesia

(MCA–I) as a member of both the PSF and the JMC in

the second quarter of 2013. MCA–I is the first Indonesian

agency to join the PSF as a donor, pledging US$89 million

in contributions. In total, the Secretariat helped to secure

US$106 million in new donor contributions. in 2013

FUTURE PLANSIn 2014, the Secretariat will continue to support

the management of the PSF and the implementation

of the 2013–2015 strategy. A key area of focus will be

on supporting the transition arrangements developed

by the PSF Transition Working Group, which will entail

developing a new structure for the management of

human resources, budgeting, and establishing of new

institutional and governance arrangements.

LESSONS LEARNEDThe complexity created by the multiple positions held

by many stakeholders involved in PNPM has become more

acute as a result of the PSF transition. This makes it all

the more important to have clear operating procedures

in order to ensure sound and efficient quality control

and to minimize disruptions to the implementation of

the portfolio.

KEY RESULTS

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Difference with cumulative tar-get for 20132011 2012 2013 2014 2015

Project Development Objective: To provide operational and administrative services to the PSF to sustain an effective framework for the implementation of PNPM Mandiri.

# of JMC meetings held within the year

# of meet-ings/year

2 (2010) 6/year 8 14 20 26 32 13 –7 (3 JMC meetings held in 2013.)

Disburse-ments (US$)

US$m 28m (2010) 36m (2008–10)

n/a n/a 188 271 312 n/a 246 –25 (US$65 dis-bursed in 2013.)

Disburse-ment ratio

Disbursed during year/undisbursed at year start

20% (2009) 70% (each year)

70% 70% 70% 70% n/a 53% –17%

% of funding executed by Govern-ment

% of total approved projects

53% (2010) 75% 60% 75% 75% 75% 75% 64% –9%

% of fund-ing execut-ed by NGOs

% of total approved projects

7% (2010) 10% 5% 7% 10% 10% 10% 13% 3%

# types of reports to the JMC

# of reports 1 AR 1 AR, QU, 2 GR

1 AR, QU, 2 GR

1 AR, QU, 2 GR

1 AR, QU, 2 GR

1 AR, QU, 2 GR

1 AR, QU, 2 GR

1 AR, QU, 1 GR

–1 GR (The Gover-nance Report for the second semester was delayed and it was published in February 2014.)

AR = Annual Report; QU = Quarterly Updates; GR = Governance Report

86 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWThe Barefoot Engineers Training (BE 3) program trains

high school graduates in Papua and Papua Barat to

become technical facilitators under the PMPM–RESPEK

program in their respective provinces, where difficult

working conditions, particularly in remote areas, have

resulted in a high number of technical facilitator

vacancies that have been difficult to fill. The training of

new technical facilitators under the program is intended

to improve the quality of the small–scale infrastructure

projects selected and built by communities through

PNPM–RESPEK.

In February 2011, the Joint Management Committee (JMC)

approved Barefoot Engineers Training Phase 3 (BE 3) in

order to fill the increasing number of vacant positions in

the two provinces. At the time the project was approved,

the program required more than 400 program facilitators,

but could only recruit less than half that number because

of the chronic shortage of engineering graduates and/or

skilled construction workers in the area. Previously,

the program attempted to recruit engineers from

elsewhere in Indonesia, but had a difficulty in retaining

them due to the difficult working conditions. The previous

Barefoot Engineers Training programs (in 2002–2003 and

2008–2009) helped address this problem by providing

intensive technical training to 170 locally–recruited

high school graduates. These graduates were provided

with basic training in civil engineering, mechanics,

micro–hydro power generation, construction, budget

planning, and social facilitation and empowerment.

Following the second training program, in March 2009,

106 students graduated. Together with 56 graduates from

the first training program, these graduates made up more

than half of the current PNPM–RESPEK field engineers

at the point when BE 3 began. To date, the performance

of the graduates of these training programs has

been satisfactory.

PROGRESS IN 2013The implementing agency for this program is the Eastern

Indonesia Knowledge Exchange (BaKTI), with technical

assistance provided by LPPM–UNCEN.27 The program

received funding from the Australian Department of

Foreign Affairs and Trade (DFAT ) for preparatory activities

in 2012, including the updating of the training modules

and the recruitment of trainers and participants. However,

delays occurred in the preparation process, impacting

on BaKTI’s capacity to implement BE 3 by leaving

minimal preparation time before the planned start date

of 1 October 2012. Eventually, the implementation of

pre–service training started in November 2012, with

the program aiming to produce 300 qualified graduates

from across Papua and Papua Barat. Of the selected

trainees, 29 percent were women, a figure slightly less

than the targeted level of 30 percent. The training

took place at the University of Cendrawasih. Despite

occasional logistical difficulties, the support provided

by the University was satisfactory, with external

supervision by engineers and others also indicating that

the training was of a high standard. The training program

was completed on schedule at the end of March 2013.

Summary Information

Status Task Team Leaders Implementing Agency

Active Sonya Woo (swoo1@worldbank.org)

BaKTI (Bursa Pengetahuan Kawasan Timur Indonesia, Eastern Indonesia Knowledge Exchange)

Start Date to Closing Date

25 October 2012 to 30 June 2014

Geographic Coverage Approved Budget

Papua and Papua Barat US$ 4,153,500

WINDOW TWO

BAREFOOT ENGINEERS TRAINING PHASE 3 (BE 3)

27 Lembaga Penilitian dan Pengabdian Masyarakat or Research and Community Dedication Institution at the University of Cendrawasih

BAREFOOT ENGINEERS TRAINING PHASE 3 (BE 3) | 87

From a class of 300, 290 trainees graduated. Given that

BaKTI and the PSF anticipated a 10 percent dropout

rate, it was expected that 270 students would graduate.

Thus, the actual number of graduates was 13.5 percent

higher than the targeted level. Following the students’

graduation, BaKTI collaborated with local work units

(satker) to deploy the newly graduated technical

facilitators in their respective districts. In the last quarter

of 2013, 16 BE 3 graduates were posted to the districts

of Puncak and Puncak Jaya, with these graduates being

the last of their cohort to be deployed to the field. With

this deployment, all of the vacant technical facilitator

positions have been filled.

A team of consultants conducted a tracer study in

mid–2013 to determine the extent to which graduates

from previous phases of the program have contributed

to achieving the development goals of PNPM–RESPEK.

This study also measured the extent to which graduates

have remained in their positions as technical facilitators

under PNPM Rural/RESPEK and sought to solicit feedback

from the graduates regarding ways to improve their

training and deployment. The tracer study, which was

implemented in March and April 2013, concluded that

the Barefoot Engineers Training program has met its

overall objectives and that it is a successful means

to develop local capacities and to cultivate local

assets, thereby contributing to improving the quality

of the implementation of PNPM–RESPEK. The study

concluded that the graduates from the previous

training courses have performed their duties well; that

the technical quality of the infrastructure designed

by the graduates is satisfactory; and that the quality of

facilitation they have provided has been excellent.

Throughout August 2013, provincial–level trainers

provided a first round of mentoring and conducted

a qualitative evaluation of training needs in all regions

where BE 3 was implemented, although these trainers

had difficulty accessing Boven Digoel, as all regularly

scheduled flights to Tanah Merah, the capital of Boven

Digoel district, were cancelled. The district is now only

accessible by road from Merauke, making coaching

activities difficult, given the 12–18 hour one–way drive,

which is also not possible for much of the rainy season.

Construction of micro–hydro power system 3

88 | 2013 PSF PROGRESS REPORT

Following the evaluation, a post–mentoring/coaching

evaluation and workshop was held in Sorong, Papua

Barat, in September 2013. The workshop attendees

also began to design a comprehensive set of refresher

trainings for all BE graduates, and a coaching schedule

was created for the first half of 2014. The findings

of the coaching/mentoring evaluation include: (i)

the recognized need for better tutoring material related

to design under field conditions; (ii) the need for better

coordination with district governments and for more field

travel by coaches/mentors; (iii) the need for post–process

tests to measure impacts of the mentoring process and

draw implications for the upcoming refresher training;

and (iv) the need to recruit additional trainers prior to

the January–March 2014 round of refresher trainings.

FUTURE PLANSThe process of securing a no–cost extension of the BE

3 program until the end of December 2014 commenced

in 2013 and will be finalized in the first quarter of 2014.

The extension is intended to facilitate the implementation

of a more robust mentoring and coaching component

and the provision of social facilitation mentoring

at the district level. BE 3 graduates, who have until now

concerned themselves with assisting social facilitators

and with their reporting duties, will continue to provide

technical facilitation. The program’s remaining deliverables

include a package of refresher training modules for

graduates from all three training rounds and the provision

of intensive coaching and mentoring for the remainder of

the program. The design and sequencing of the refresher

training package will be finalized in early January 2014,

for delivery from late January through early March 2014.

Separate training programs are planned in Papua and

Papua Barat in the first quarter of 2014. In addition,

activities to build the capacities of LPPM–UNCEN staff in

the areas of financial management and other aspects of

operations and administration will begin in January of

2014. In early 2014, the Directorate General of Community

and Village Empowerment (PMD) will also conduct an

evaluation to determine the rate of retention of BE

3 graduates. Lastly, the design of BE 4 will begin in 2014,

with an anticipated launch date to come after July 2014,

depending upon the JMC’s approval.

LESSONS LEARNEDDuring their training, 46 BE 3 graduates (out of a total

of 290) exhibited problems related to both delinquency

and incompetence to the extent that it was clear that

the majority of them should not have been allowed

to graduate. Steps are being taken to make this issue

a matter of record with the provincial authorities.

Particular attention is being paid to the performance

of these problematic graduates, and this has resulted

in a number of resignations, warning letters, and

terminations. The upcoming BE 4 training program

design will be modified to reflect the lessons learned over

the course of BE 3’s implementation.

Likewise, LPPM–UNCEN staff lack some of the necessary

competencies, and constant efforts to build the capacity

of LPPM–UNCEN and other staff over the last ten years

have been undermined by the turnover of staff every

time a new director is appointed. Experienced, trained

members of staff are often dismissed by new directors,

to be replaced by new staff who require further training.

In view of this, forming a partnership with an entity that

has a permanent administration would be beneficial, as

the current lack of capacity of implementing staff may

adversely affect the quality of the training programs.

Coordination with national–level PMD teams was also

challenging, which had an impact on efforts to coordinate

with provincial representatives, which was satisfactory in

itself. For instance, travel in the two provinces is subject to

national approval, which was often not forthcoming. On

occasions, this led to provincial officials being unable to

attend and monitor pre–service meetings, trainings and

other important events.

BAREFOOT ENGINEERS TRAINING PHASE 3 (BE 3) | 89

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Difference with cumu-lative target for 20132012 2013 2014

Project Development Objective: To provide trained technical facilitators for the PNPM Rural/RESPEK Program in the provinces of Papua and West Papua.

Qualified tech-nical facilitators provided by the program to PNPM Rural/RE-SPEK Program in the provinces of Papua and West Papua

# of positions filled

n/a 270 (i.e. 90% of trainees)

0 270 – 290 20 (BaKTI has handed over the graduates to the Papua and Papua Barat Satker and they have been deployed to their duty stations.)

Improved quality of small–scale village infrastruc-ture

% of sub–projects in good condition

60% 65% 62% 65% n/a The impact on BE grad-uates on the quality of infrastructure will be measured in 2014.

Participants trained

# of train-ees

n/a 300 300 300 – 300 300 participants were recruited: 10 dropped out due to various rea-sons, but this was less than the 10% anticipat-ed.

Female trainees % of female trainees

n/a 30% (i.e. 90 total)

30% 30% – 29% –1% (Women were suc-cessfully recruited: how-ever, nearly all of the dropouts were women. Further support is need-ed to ensure retention.)

Barefoot gradu-ates participate in a two–week refresher training

# of facili-tators

n/a 370 0 370 – 0 –370 (The first refresher training will begin in January 2014.)

Tracer study of BE graduates

Status of the activity

n/a Com-pleted

Study starts

Con-tinues

Final report com-pleted

Completed Tracer study completed, submitted and ap-proved in June 2013.

KEY RESULTS

90 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWPNPM facilitators play a key role in assisting communities

to formulate and improve their development plans and

in advising village implementation teams and community

groups on their involvement with micro–enterprise

ventures. However, a number of studies and evaluations

have noted a decline in the quality of facilitation and

identified this as a factor that has the potential to

undermine the effectiveness of PNPM. For example,

the Governance Review of PNPM Rural Report28 contends

that facilitators are increasingly absent, poorly trained,

lacking in the right skills or motivation, or facing

political pressure to collude with local governments. In

addition, the review noted that the scale–up of PNPM

Rural in the 2007–2009 period resulted in an increase

in the number and geographic coverage of programs,

which has increased the burden borne by more than

25,000 facilitators. Together with heavy reporting

obligations, this leaves facilitators with less time to focus

on their core responsibilities.

The PNPM Roadmap developed by the Steering

Committee of PNPM (Pokja Pengendali) and the National

Team for Acceleration of Poverty Alleviation (TNP2K)

emphasizes the importance of ensuring the sustainability

of quality facilitation to meet the Government’s stated

goals. This need has become even more critical with

the promulgation of the new Village Law (Undang–Undang

6 Tahun 2014 Tentang Desa), approved by the national

parliament in December 2013. The law mandates

the provision of facilitation by the Government to villages

to ensure the transparent and accountable management

of village development funds and to build the necessary

capacities to develop village institutions.

CFDP 3 builds directly on the groundwork laid during

the previous two phases of the program to equip all

PNPM facilitators with basic competencies by creating

a nationally recognized certification program and

by providing ongoing professional development and

refresher training.

PROGRESS IN 2013 The basic infrastructure for the project was finalized in

2013, including the establishment of an independent

Institute for Professional Certification of Community

Facilitators (Lembaga Sertifikasi Profesi–Fasilitator

Pemberdayann Masyarakat, LSP–FPM), which was

formally recognized by the Ministry of Manpower

and Transmigration. The LSP–FPM hired an additional

37 competency assessors and established 11 new test

centers (TUKs) across the country, which use national and

international guidelines for professional certification.

While the basic infrastructure for the certification process

has been established, the progress on certifying facilitators

has been slow. By the end of 2013, the LSP–FPM had

only certified 422 facilitators against the original target

of 3,000. The development of test materials, assessors’

training and the fulfilment of strict documentation for

the BNSP license proved particularly challenging. The

TUKs also needed more time to prepare their internal

legal documentation to meet the requirements for

accreditation. Furthermore some PNPM facilitators

have been hesitant to join the program because of

uncertainties regarding the future of the PNPM program.

However, as these issues were addressed over the year,

since September 2013, the certification program has been

operational and competency test centers have begun

issuing certifications. TNP2K and Pokja Pengendali have

also issued a policy to improve levels of remuneration

for certified facilitators and an instruction to encourage

the use of certified ones.

Summary Information

Status Task Team Leaders Implementing Agency

Active Hans Antlov (hantlov@worldbank.org)

Yayasan Nusantara Sejati–Institute of Good Governance and Regional Development (YNS–IGGRD)

Start Date to Closing Date

9 July 2012 to 30 April 2014

Geographic Coverage Approved Budget

National US$ 1,193,000

WINDOW TWO

COMMUNITY FACILITATORS DEVELOPMENT PROJECT 3 (CFDP 3)

28 http://www.pnpm–support.org/publication/governance–review–pnpm–rural–community–level–analysis–final–report

COMMUNITY FACILITATORS DEVELOPMENT PROJECT 3 (CFDP 3) | 91

In collaboration with PNPM stakeholders, regional

universities and Indonesian government institutions,

a refresher training program to develop the capacities

of facilitators was designed. Two batches of advanced

training were provided in May and September 2013 and

were attended by a total of 233 facilitators and trainers,

including 53 women, from 20 provinces. In addition,

with the support from the Directorate General of

Community and Village Empowerment (PMD), a system

of refresher training has been developed to allow

individual facilitators to improve their capacities through

self–learning mechanisms. The project has also prepared

an accreditation mechanism for training institutes, which

will facilitate the provision of training for community

facilitators. Stakeholder consultations concluded that

it is necessary to have competency–based training

materials and relevant master trainers as the main criteria

for accreditation.

FUTURE PLANSThe institutionalizing the certification program will be

a major focus of the project. Pending an extension of

the project till the end of 2014, the main target is to

certify 3,000 facilitators (of whom 422 facilitators have

been certified so far), which will require increasing

the number of TUKs and assessors. In provinces where

there are no TUKs, the PNPM community facilitators’

associations will mobilize and arrange for facilitators to

join certification programs.

A new phase of CFDP is being considered, with support

the development of the standards for accrediting

competency–based training materials and trainers. In

addition, with the promulgation of the new Village Law,

community facilitators may be required to fulfill a broader

range of functions, above and beyond their current roles.

Number of CompetencyTest Centers Operational

Number of FacilitatorsCertified for Basic Competencies

Number of AssessorsProviding Certification

1015

TARGET

ACHIEVEMENT

5057

TARGET

ACHIEVEMENT

3,000422

TARGET

ACHIEVEMENT

Figure 17. Achievements under CFDP 3

92 | 2013 PSF PROGRESS REPORT

Result IndicatorsUnit of Measure Baseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Differ-ence with cumulative target for 20132012 2013 2014 2015

Project Development Objective: To advance the role of community facilitators as agents of change through certification and training programs.

# of facilitators en-rolled in the certifica-tion process

#of facilitators 0 3,000 250 3,000 3,000 n/a 422 –2,578 (Significant delays; see project update for details.)

# assessors providing certification

# of assessors 0 50 20 50 50 n/a 57 7

# of competency test centers operational

# of test centers accredited

0 10 5 10 10 n/a 15 5 (11 deliv-ered in 2013 alone.)

# of operational mas-ter trainers

#of trainers complete train-ing

0 400 0 233 400 n/a 233 Final batch postponed to 2014

Development of train-ing design modules

#of modules developed

0 1 0 1 n/a n/a 1 0

Accreditation of train-ing centers

#of draft manual 0 1 0 1 n/a n/a 1 0

LESSONS LEARNEDCommunity facilitator associations play a significant

role in increasing the awareness of their members

and preparing facilitators for the certification process.

For example, in several provinces in Sulawesi, these

associations organized a certification program under

the direct guidance of LSP–FPM, in some cases even

pre–financing the certification fee. To leverage the role

of these associations, they could be supported further

to build the capacities to organize members; to provide

additional professional competency–based training; and

to maintain the capacity of members through continuous

learning mechanism.

Since joining the certification program is voluntary for

individual facilitators, the need for strong incentives

has been recognized as a critical factor to encourage

participation in the program. Other institutional

factors include strong buy–in from implementing

partners, the mandatory use of certified facilitators and

the provision of resources for staff to join the certification

program. Equally important is the provision of adequate

remuneration to certified facilitators. Pokja Pengendali

issued a letter emphasizing the importance of certification

in early 2013, and a policy on the remuneration system

has also been issued by the Coordinating Ministry,

recommending a differentiation of pay for certified

facilitators. However, the policy was never approved

by the Government, and more efforts and active advocacy

are needed to ensure that the PNPM project management

implements this policy in 2014.

KEY RESULTS

PRO POOR PLANNING, BUDGETING AND MONITORING PROJECT (P3BM) | 93

PROJECT RATIONALE AND OVERVIEWThe Pro–Poor Planning, Budgeting and Monitoring

(P3BM) toolkit is a set of tools and instruments that local

governments across the country can use to ensure that

local development plans and government budgets are

pro–poor and sensitive to socio–economic inequalities.

With P3BM, officials can monitor and evaluate local

government performance related to the provision of

public services for the poor, while citizens also have

access to monitoring tools to check if that such plans are

implemented appropriately. The underlying development

assumption is that the availability and the use of reliable

evidence and data can make planning decisions more

pro–poor and responsive to local needs.

The P3BM project was originally designed in the period

from 2007 to 2009 by the Asian Development Bank and

the United Nations Development Programme (UNDP).

Since 2010, the P3BM project has been managed

by the Poverty Reduction Unit of Bappenas, who

requested that the PSF provide support to build capacities

and to conduct an initial series of pilots under the Local

Government Capacity Development (LGCD) project.

Under this project, the P3BM toolkit was used to train

national and provincial master trainers, who in turn trained

officials from 29 local governments (2011–2012). P3BM

trainings and workshops were conducted in collaboration

with implementers and stakeholders from the PNPM

Urban and PNPM Integrasi programs, which resulted in

a more integrated approach to the development of local

planning practice.

An independent review conducted in 201129 showed

that P3BM had helped local governments to better

manage poverty data by providing directions for

pro–poor planning and by improving the quality of

planning documents. On the basis of these positive

findings, Bappenas requested that the P3BM project be

scaled up under a separate trust fund. The project was

approved by the Joint Management committee (JMC) in

April 2012, under an institutional arrangement in which

the Partnership for Governance Reform (Kemitraan) is

designated as an implementing agency with the strategic

guidance from Bappenas’ Poverty Reduction Unit.

PROGRESS IN 2013The project began implementing in January 2013 and

during the year provided training to 36 national and

108 provincial master trainers. These trainers, who come

from government agencies and institutions, CSOs

and universities, have been involved in P3BM cascade

training activities that were offered to seven provincial

and 14 district governments. Training activities were

also provided to governments from 13 non–targeted

districts, with governments in these districts allocating

funds for training from their own local budgets. A total

of 1,174 local government officials have been trained

in 2013, including 360 women (about 30 percent of

the total). P3BM clinics were established in nine provinces

to provide post–training technical assistance to the local

governments in order to ensure that the impact of

the training was sustained and that proper follow–up

measures were implemented. These clinics emphasize

the need to maintain databases, monitor local expenditure

and involve local parliaments in P3BM activities.

The project also made contributions across government

administrative levels. Activities were initiated to produce

key outputs, including a set of tools for local governments

Summary Information

Status Task Team Leaders Implementing Agency

Active Hans Antlov (hantlov@worldbank.org)

Kemitraan Bagi Pembaruan Tata Pemerintahan (Partnership for Governance Reforms)

Start Date to Closing Date

26 May 2013 to 30 June 2015

Geographic Coverage Approved Budget

National US$ 1,665,000

WINDOW TWO

PRO POOR PLANNING, BUDGETING AND MONITORING PROJECT (P3BM)

29 Donny Setiawan and Suhirman(2011). Lessons learned from the Pro–Poor Planning and Budgeting and Monitoring Program (P3BM): A Rapid Assessment in Nine Districts

94 | 2013 PSF PROGRESS REPORT

to monitor expenditures and P3BM business plan

at the national level. Poverty targeting was adopted in

district–level annual development planning through

the discussions with key stakeholders in districts. A

series of discussions and workshops was also held on

community based monitoring and preliminary draft of

the design and training guidelines for community–based

monitoring of local budgets currently is being finalized.

These two manuals are expected to be completed in

the first quarter of 2014.

The project has facilitated discussions with relevant

agencies and programs at the national level, including

Bappenas, the Australian Department of Foreign Affairs

and Trade (DFAT ), National Team for the Acceleration of

Poverty Reduction (TNP2K) and UNDP, and at the regional

level, including local governments and their agencies,

CSOs and universities, on the need to mainstream P3BM

tools at the national level. Amongst other measures, this

could be achieved by incentivizing the adoption of P3BM

and by establishing a position on pro–poor planning

and budgeting at the new DFAT–funded secretariat

at Bappenas’ Poverty Reduction Unit.

In response to an operational risk assessment that was

conducted in February 2013, the project is making

efforts to improve coordination and financial and project

monitoring. In addition, the project has developed

a set of standard operating procedures and discussions

are underway on the establishment of an advisory

committee to ensure that national stakeholders working

on MDGs and pro–poor planning are better coordinated.

In addition, other preparation works continued such as

the development of project monitoring framework and an

exercise to establish baseline data.

FUTURE PLANSIn 2014 the project will focus on:

zz Establishing and strengthening provincial

P3BM clinics.

zz Monitoring of local poverty reduction expenditures

zz Developing a P3BM Business Plan to support its

sustainability and to accelerate the integration of its

tools and methodologies into national level projects.

zz Strengthening P3BM to improve strategic planning,

budgeting and oversight.

LESSONS LEARNEDSince the P3BM focuses on planning rather than on

implementation, it was not expected that the project

would have a direct impact on the quality of service

delivery. However, positive spill–over effects emerged

whereby providing knowledge and specific tools to

monitor expenditures enabled and encouraged local

government agencies to track the local budget and

take follow–up actions. Involvement of the third parties

in the budget monitoring through community based

monitoring and other means may further improve

the commitment and capacity of local governments to

manage budget allocation for MDGs and poverty–related

issues. Future design of similar projects needs to consider

these broader spill–over effects proactively to maximize

impacts on both planning and implementation.

The P3BM is highly dependent on the quality of

data entered into the database. Therefore, to ensure

the effectiveness of P3BM, it is also necessary to

implement measures to improve the quality of

district–level poverty data and information. To achieve

this, the project has established a ‘data forum’ to

encourage district–level agencies to consolidate existing

data. However, in many districts, these efforts will need to

be intensified as it has been noted that the quality of data

of many district technical agencies is still low.

PRO POOR PLANNING, BUDGETING AND MONITORING PROJECT (P3BM) | 95

Result IndicatorsUnit of Measure Baseline

Total Target

Targets (cumulative)Cumulative Progress as of Dec 31, 2013

Difference with cumulative target for 20132012 2013 2014 2015

Project Development Objective: To improve poverty targeting of local government expenditures and local government responsiveness to community needs through the scale–up and institutionalization of the P3BM program.

# of local govern-ments that have adopted poverty targeting in annu-al development planning

# of LGs 11 (2012) 71 – 31 71 – 22 –13 (Expected to be achieved after full roll–out in late 2013.)

Increased per-centage of direct local government budgets allocated for MDG targeting and poverty–relat-ed spending

% of bud-get

Baseline survey in early 2013

+7.5% (TBC)

0 5% 7.50% – 0 –5% (The base line was established in 2013 and an impact study will be conducted in 2014 to collect data and measure the performance on this indicator.)

# master trainers trained

# of train-ees

152 (2012)

432 0 272 432 – 295 –132 (cf. 152 trainers trained under LGCD, 280 additional train-ers planned to be trained under this project. On track to achieve the target.)

# of P3BM provin-cial clinics estab-lished

# of clinic established

2 (2012) 14 2 8 14 – 11 4 (2 clinics es-tablished under LGCD, 15 additional planned under this project. On track to achieve the target.)

# of CSOs and community groups that use P3BM instruments to track district pro–poor expen-ditures

# of CSOs 0 60 0 30 60 – 0 –30 (Results expect-ed after full roll–out in 2014.)

District–level MDG data sets im-proved

# of LG using data-base

3 32 3 17 32 – 31 4 (14 districts and 7 provinces have established data forums in 2013; National database will be rolled–out in 2014.)

KEY RESULTS

96 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWPNPM Mandiri’s Integrated Management Information

System (SIMPADU) is designed to manage data related

to the implementation of PNPM Mandiri and thereby to

enable national and provincial government institutions

to more effectively monitor and plan community

empowerment and poverty reduction programs. To

ensure the necessary access to reliable data, SIMPADU was

first launched by the Minister of National Development

Planning and the Head of Bappenas in August 2009.

SIMPADU data is also accessible to the program’s

stakeholders and the general public through a website,

thereby supporting PNPM’s social accountability agenda.

The primary objective of SIMPADU Phase 2 is to improve

the accessibility of data and information relevant to PNPM.

This objective will be achieved through the analysis of

the existing PNPM Management Information Systems

(MIS), and the design, installation, and operation of

SIMPADU for all of PNPM Mandiri’s programs.30 In particular,

SIMPADU Phase 2 will strengthen operating procedures

by making them more user–friendly and by building

capacities at national and provincial levels to ensure

the quality and verification of data collection, storage, and

reporting. Building on the work done under Phase 1, Phase

2 of this project consists of two components:

Component One focuses on improving data collection

and analytical capabilities by: (i) developing a PNPM

MIS Roadmap based on a thorough needs assessment

at all levels and with detailed plans for integrating

SIMPADU with other MIS of national and local

government institutions. This component also supports

the procurement and installation of software and/or

hardware; the development of Standard Operating

Procedures (SOP) for the collection, verification, storage,

and reporting of programmatic and financial data

and the provision of related training to government

staff; and (ii) improving the analytical capabilities of

the current SIMPADU and the accuracy of data to run in

parallel with the current and upcoming MIS. This latter

activity includes improvements to data verification and

the development of additional data entry applications

to achieve the system’s full integration with all PNPM

program sectors.

Component Two involves the implementation of

the Roadmap developed during the first year of

the project. This component provides selected local

governments and PNPM programs with an MIS, which will

integrate PNPM data with their own program data, as well

as the knowledge and technical expertise. The ultimate

goal is to provide data to support the prioritization of

development initiatives at the sub–national level, not

only for PNPM but also for the full range of development

programs implemented by local governments. However,

the system’s development at the provincial level is

currently lagging, partly due to the lack of coordination

between stakeholders and weak data validity.

PROGRESS IN 2013 SIMPADU Phase 2, which was originally planned to close

in December 2012, was extended for an additional

12 months, until December 2013. This extension was

requested by Bappenas that technical assistance

provided by the team of MIS experts to PNPM programs

continue and be expanded through the development

of the provincial level SIMPADU. SIMPADU now receives

data directly from all 13 PNPM Mandiri core and special

programs. The development of SIMPADU at the provincial

level, under the second component of the project,

began in 2012. The project objectives were socialized in

the initial five target provinces, but these socialization

efforts with local governments took considerably longer

Summary Information

Status Task Team Leaders Implementing Agency

Active Charles Reese Brigham (cbrigham@worldbank.org)

Bappenas

Start Date to Closing Date

31 May 2011 to 30 November 2014

Geographic Coverage Approved Budget

33 targeted provinces US$ 977,000

WINDOW TWO

SIMPADU PHASE 2

30 PNPM Rural, PNPM Urban, RISE, RIS, PNPM Green, PNPM Generasi, ND (Neighborhood Development), PAKET, Tourism, Agriculture, PPIP (Village Infrastructure Acceleration Program), Border Areas, PNPM Integrasi. The list includes completed programs as SIMPADU maintains historic data inherited from their MIS.

SIMPADU PHASE 2 | 97

than expected. Thus, the development of the provincial

systems were delayed and had to be carried to 2013. In

December 2013, SIMPADU completed the installation

of pilot systems in 13 provinces through the Regional

Poverty Eradication Coordination Team (TKPKD).

The progress for SIMPADU Phase 2 is highly dependent

on the quality and validity of data from each PNPM

program. Given this, Bappenas, has actively encouraged

PNPM implementing agencies to upgrade the quality

of their respective MIS to strengthen the overall validity

of the data and information made available through

the system.

In order to achieve the full integration of the existing

SIMPADU with the MIS of all PNPM programs, particularly

the upcoming PNPM Rural MIS and the Revolving

Loan Fund (RLF) MIS, the project was extended for

the second time until November 2014. With the extension,

the number of target provinces for the piloting of

provincial–level SIMPADU increased from 13 to 33, in

respect of the expressed needs by the Government, both

at central and provincial levels, for accessing information

relevant to the implementation of their poverty reduction

and community empowerment programs. These pilot

provinces will be provided with individual support to

develop their own integrated databases.

FUTURE PLANSIn 2014, the following activities will be conducted

under the two components of the project. Under

Component One, the focus of activity will be on

upgrading the SIMPADU database to facilitate integration

with the new PNPM Rural MIS and RLF MIS. Data from

the 13 PNPM programs covered by SIMPADU will

be uploaded throughout 2014 and server upgrades

will be implemented. The project will strengthen

the Export–Transfer–Load (ETC) application for PNPM

special programs and ensure the automatic loading of

data from the various PNPM databases into SIMPADU

systems. To ensure the continuity of data and information

relevant to the implementation of poverty reduction

programs, SIMPADU will also develop a MIS for the Master

Plan for the Acceleration and Expansion of Poverty

Reduction (MP3KI).

Another critical issue that will be addressed over the year

relates to security. In late December 2013 the site was

compromised by a hacking attack and since then,

the Center for Data and Information (Pusdat) team has

been evaluating the extent of the damage caused to

the server. While the platform is backed up, it required

a rerouting to the backup server. It is estimated that it will

take up to three months to assemble detailed information

on the extent of the breach.

Under Component Two, the focus of activity will be on

the development of integrated databases for poverty

reduction programs at the provincial level, particularly

for the 20 provinces that are not currently being piloted

by the TKPKD. These databases will serve as important

tools to enable provincial governments to be more

informed and involved in the poverty reduction efforts

of the central government. In addition, efforts will be

made to facilitate the sharing of information between

central and provincial government agencies involved in

the planning and/or implementation of poverty reduction

programs as a means of making these programs more

effective and efficient.

LESSONS LEARNEDPNPM programs are implemented by a range of

different implementing agencies, with the quality of

their MIS systems varying considerably. Thus, there is

a wide range of reliability in data input to SIMPADU,

which creates concerns for the overall quality of data

provided by SIMPADU. Consideration should be given to

establishing agreements among all PNPM stakeholders on

the MIS roadmap, with minimum standards for individual

MIS. In view of this, the ongoing redesign of PNPM Rural’s

MIS, which aims to put in place a reliable data transfer

system from the sub–district level to the national level,

needs to be accompanied with a systematic validation of

the quality of this data.

98 | 2013 PSF PROGRESS REPORT

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Difference with cumulative target for 20132011 2012 2013 2014

Project Development Objective: To enable select government institutions (national, regional, and sectoral) to more effectively monitor and plan interventions designed to reduce poverty throughout Indonesia.

SIMPADU fully integrat-ed with the MIS of PNPM Mandiri pro-grams.

# of PNPM Mandiri programs

3 (under Simpadu 1.0)

13 5 8 13 _ 13 Target achieved.t

SIMPADU data qual-ity and analytical capabilities enhanced and aligned with PNPM Mandiri’s existing M&E framework.

N/A Original database engine had very limited features

n/a Migration to new database & application engine; sta-tus update; Home ad-ministrator; Updated ETL

Update ETL applica-tion for other PNPM sectors, addi-tional features

Updat-ed data ware-house for all PNPM pro-grams

_ New da-tabase & application engine oper-ational, sta-tus update, home, ad-ministrator, updated ETL for Green, Tourism, RIS, Agriculture, additional features

Data for PNPM Tourism & Agri-culture already in SIMPADU although the quality is still poor; Business Intel-ligent and GIS already live but further improve-ments are needed; SIMPADU social-ized in five prov-inces and provin-cial level SIMPADU piloted in Banten.

Increased ca-pacity of the MIS depart-ments/staff of all PNPM programs to manage the integrat-ed system and collect complete and accurate data from the field.

N/A No direct involve-ment of SIMPADU team with the MIS team of PNPM programs SIMPADU Team assisted MIS team of Rural PNPM

n/a TA to PNPM Rural

TA to MIS staff in various PNPM secre-tariats contin-ues

TA to MIS staff in various PNPM secre-tariats contin-ues

_ TA to MIS staff in var-ious PNPM secretariats continues; Knowledge transfer to the MIS staff of each PNPM secretariat continues

TA will continue for 3 programs (PPIP, Border, Inte-grasi) to improve data quality; support to PNPM Tourism & Agricul-ture to improve MIS so that data can be integrated with SIMPADU; coordination with the PNPM Rural MIS Team to support the main-tenance of the existing functions for data cleaning and importing into SIMPADU.

Increased involvement of local governments in Simpadu pilot prov-inces.

# of prov-inces covered by prov-ince level SIMPADU

No involve-ment of local gov-ernment

33 _ 5 13 33 13 Model for the Province–level SIMPADU under Development.

KEY RESULTS

VILLAGE TRAINING PROGRAM | 99

PROJECT RATIONALE AND OVERVIEWAs part of a broader framework to facilitate community

empowerment and to reduce poverty, the Government

has drafted a Village Law (Undang–Undang 6 Tahun

2014 Tentang Desa), which was approved by the national

parliament in December 2013. The law significantly

increases the financial resources available to communities

at the village level and outlines a system of governance

for the management of these resources. As village

governments are granted a high level of autonomy in

the management of these funds, there is also a strong

need to balance this new power with improved

capacities and to develop appropriate accountability

mechanisms through which village governments can

be held accountable by the communities they serve.

At present, it is recognized that capacities of village

level governments and institutions are weak. Enhancing

the capacities of these actors will require substantial

investments in the development of the systems of village

governance and key community institutions.

The Village Training Program was established to develop

the capacities of village–level authorities in order to

prepare them for managing the increased responsibilities

and resources under the new decentralization framework.

This will be achieved by: (i) reviewing and revising

the current government training program for village

authorities; (ii) enhancing the capacities of governmental

training agencies and selected CSOs to ensure they deliver

a quality training program at scale; and (iii) strengthening

the policy framework and implementing regulations

related to capacity building at the village level in a way

that they support the objectives defined by the PNPM

Roadmap and facilitate overall village institutional

Summary Information

Status Task Team Leaders Implementing Agency

Recipient Executed Grant Agreement being finalizedBank Executed; Trust Fund active

Hans Antlov (hantlov@worldbank.org)

Directorate for Community and Village Empowerment (PMD), Ministry of Home Affairs; PSF/World Bank

Start Date to Closing Date

28 November 2012 to 31 December 2015

Geographic Coverage Approved Budget

National US$ 1,645,000

WINDOW TWO

VILLAGE TRAINING PROGRAM

development. The program will be linked to existing

training programs delivered through PNPM and provide

added value by improving the quality of these programs

and mainstreaming the principles of community–driven

development, which have been tested and piloted

through the implementation of PNPM programs. In

addition, the program will develop appropriate training

materials to facilitate the development of village level

governance institutions.

PROGRESS IN 2013The PSF worked with PMD on a needs assessment to

improve the design of village training programs and

to develop training modules. Coordination meetings

with stakeholders in Jakarta and consultations with

stakeholders at the district and village levels were

conducted, with field visits to East Java, the Special

Region of Yogyakarta and Gorontalo. A preliminary

draft of the framework is being prepared and

coordination meetings with PMD are planned to discuss

follow–up actions.

The project provided substantial contributions to

the new Village Law based on the lessons learned

from PNPM. The PSF also provided technical for

the implementation of the PNPM Roadmap, particularly

on matters related to village–level governance. Policy

notes and recommendations on issues related to village

capacity building/village governance strengthening were

formulated and shared with stakeholders from National

Team for the Acceleration of Poverty Reduction (TNP2K) to

serve as input for reinforcing community institutions and

achieving the integration of participatory planning into

regular development planning.

100 | 2013 PSF PROGRESS REPORT

FUTURE PLANSIn 2014 the program will focus on:

zz Developing a village–level training design and

associated training modules.

zz Developing small scale pilots for village training

framework: Pilots are planned for implementation

in Central and East Java in the first half of 2014.

Apart from pre–testing the training framework,

the pilots will also address a range of issues related

to capacity building at the village level, such as

participatory planning process, transparency and

social accountability.

zz Providing policy advice to PMD and TNP2K on village

governance and village institutional development:

The project will continue to provide evidence–based

policy advice through field visits, workshops, and

regular coordination meetings.

LESSONS LEARNEDField–evidence forms an important basis for

the formulation of policy recommendations. Reviewing

reports from studies and assessments, as well as

discussions with various stakeholders, particularly

at the local level, helped to comprehensively and

accurately synthesize the lessons and evidence. Many

of the recommendations emanating from this process

have now been accommodated in the policies around

the PNPM Roadmap. Another important recommendation

from discussions with stakeholders and observations

in the field is that capacity building design needs to be

flexible to respond to the variation in local conditions

even though being developed at the national level.

“Forum Desa Nusantara” (Indonesian Village Forum) held at Sambak Village in Kajoran Sub–district, Magelang Regency, province of Central Java, on February 8, 2014 discussed the government's plan to incorporate PNPM Mandiri to help prepare villages before the Village Law is fully applied.

VILLAGE TRAINING PROGRAM | 101

Result Indicators Unit of MeasureBaseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Difference with cumulative tar-get for 20132013 2014 2015

Project Development Objective: To develop and pilot a Government of Indonesia (GOI)’s training program for village authorities on core functions and skills in order to prepare villages for increased responsibilities and inflows of resources under the decentralization framework.

# of relevant GOI training agencies that have incorporated the improved training de-sign and modules into their training program/agenda

# of GOI training agencies

0 10 0 0 10 0 Target to be achieved in 2015.

# of laws/regulations/guidelines developed and/or revised with input from the Project to support communi-ty–based institutional development

# of policy recom-mendations

0 5 0 2 5 1 1 On target

# of training modules revised

# of training mod-ules

0 10 0 3 10 0

# of training agencies and institutes that have received capacity build-ing on the improved village training programs

# of relevant GOI training agencies

n/a 25 0 10 25 0 Capacity building planned to start in 2014.

# of NGOs/CSOs in-volved in the develop-ment of village training design/plans

# of NGOs n/a 50 0 20 50 28 28 (Design work-shops conducted in 2013.)

# of policy recommen-dations in village and community–based in-stitutional development produced and discussed with relevant parties

# of policy recom-mendations

– 10 0 5 10 3 3 (Recommen-dations made to PNPM Roadmap regarding com-munity institu-tions, facilitators and develop-ment planning.)

KEY RESULTS

102 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWCreative Communities 2 (CC 2) enhance public

participation in PNPM and increases the voices of the poor

and of marginalized groups in local decision–making

processes through the use of creative expressions and

community–based cultural activities. CC 2 contributes

to the Indonesian Government’s PNPM Roadmap Pillar

One (Integration of development initiatives at the local

level), Pillar Two (Sustainability of facilitation), and Pillar

Five (Strengthening of governance). It supports these

pillars by developing cultural processes to strengthen

village participatory planning mechanisms that further

integrate with the local development planning system;

by empowering communities to play an active role in

ensuring transparency and accountability in the use

of development funds and by encouraging PNPM

facilitators to use community cultural practices to facilitate

community planning.

In April 2012, the Joint Management Committee (JMC)

approved the CC 2 project, to addres identified constraints

to the achievement of inclusive participatory planning

within the PNPM program. Studies such as Marginalized

Groups in PNPM Rural (June 2010)31 and the PNPM Rural

Impact Evaluation (April 2012)32 show that although PNPM

has been successful in reducing poverty, poor people

and marginalized groups are less likely to participate

in the program. In part, this is due to the massive scale

up of PNPM Rural over a relatively short period, which

caused a strain on the quality of facilitation. The previous

Creative Communities project (CC 1) was implemented in

the period from 2008 to 2010 to address this challenge.

CC 1 demonstrated that the integration of cultural

approaches to community development is an effective

means of improving participatory planning. The CC

2 project has been designed to incorporate lessons

learned from the implementation of CC 1. In particular,

to yield a more strategic impact, the project is using

community theatre and video methodologies to support

village planning instead of the open menu approach used

in CC 1.

The project provides a grant to a leading national

arts organization, Yayasan Kelola, as an implementing

agency for the two components of the project. Under

Component 1 (Creative Empowerment Process),

Yayasan Kelola implements community theatre and

video activities directly in collaboration with local PNPM

teams. Under Component 2 (Sub–grants), it on–grants to

other individuals and organizations to implement other

community cultural activities supporting PNPM’s goals.

CC 2 is implemented in two phases: Phase 1 (Operational

Setup) and Phase 2 (Implementation). The initial fund,

covers Phase 1 of the project that is being conducted in

the period from September 2012 to June 2014. During this

phase, activities have included the following: reviewing

the lessons from CC 1; carrying out a field assessment

to identify existing cultural resources and consult

stakeholders; modifying the project design of CC 2 and

testing the design in three pilot locations; setting up

the operational infrastructure; training facilitators; and

developing a results measurement system. A request

for additional funding for Phase 2 will be presented

to the JMC in the first quarter of 2014. Subject to

the approval of the JMC, this phase will be implemented

in the period from July 2014 to June 2015.

PROGRESS IN 2013After a delay in grant activation at the beginning of

the implementation period, the project gathered

momentum in April 2013, when pilot activities were

implemented in three locations, namely, Landek (West

Kalimantan), Bone (South Sulawesi) and North Lombok

(NTB). The main purpose of these activities was to test

the modified project design and consisted of activities

Summary Information

Status Task Team Leaders Implementing Agency

Active Caroline Mary Sage (csage@worldbank.org)

Yayasan Kelola and PSF

Start Date to Closing Date

19 September 2012 to 30 June 2014

Geographic Coverage Approved Budget

Three districts for pilot activities: Landek (West Kalimantan), Bone (South Sulawesi), North Lombok (NTB)

US$ 880,000

WINDOW TWO

CREATIVE COMMUNITIES 2 (CC 2)

31 http://www.pnpm–support.org/publication/marginalized–groups–pnpm–rural

32 http://www.pnpm–support.org/publication/pnpm–rural–impact–evaluation–report–2012

CREATIVE COMMUNITIES 2 (CC 2) | 103

such as conducting theatre and participatory video

with community groups; the public presentation

of their creative works; the awarding of sub–grants;

the development of monitoring and evaluation tools;

and the design of a model to integrate CC 2 activities

into PNPM.

A field assessment report was completed in the first

quarter of 2013 and identified local arts and cultural

activities that could be supported by CC 2 to improve

participatory planning and also summarized the findings

from the consultations with local PNPM teams and

stakeholders on their facilitation needs and on

the proposed CC 2 design. Based on this input, changes

were made to the PNPM’s Technical and Operational

Guidelines (PTO) and to the design of CC 2.

In terms of achieving the project’s objectives, findings

from a qualitative evaluation of pilot activities conducted

between April to December 2013 show that the project

empowered participants to take an active role in local

decision making, and raised public awareness of PNPM. In

particular, CC 2 created opportunities for women, youth,

poor and marginalized groups to voice their concerns

and to take part in village planning. The evaluation also

found that the project had inspired a number of initiatives

implemented by local governments, indicating a high

level of local government and community support for

the project. The project has been received well by local

PNPM teams and government stakeholders. In particular,

PNPM staff members perceive CC 2 to be useful for

communicating PNPM’s concept and values and for

facilitating PNPM’s participatory problem identification,

decision making and community monitoring processes.

In addition to the planned activities, CC 2 provided

a workshop on creative approaches for community

facilitation to 33 PNPM village facilitators from

the sub–district of Sengah Temila in the Landak district

in response to a request from PNPM Rural team in

West Kalimantan.

During Phase 1, although Yayasan Kelola and

the Directorate General of Community and Village

Empowerment (PMD), the implementing agency

The local health volunteer (furthest right) joins other villagers to watch a community video produced by the Creative Community group in Malaka village in North Lombok. The video focuses on the maternal health services provided by the local health post (posyandu) and the level of satisfaction of its users.

104 | 2013 PSF PROGRESS REPORT

for PNPM Rural, agreed to form a partnership for

the implementation of the pilot activities, the lack of

formal communication between PMD and the local PNPM

teams created some challenges for the implementation

and operationalization of CC 2’s integration into PNPM. In

order for CC 2 to effectively impact PNPM, it is essential

to formalize the partnership with PMD/PNPM in 2014 for

the implementation of Phase 2.

FUTURE PLANSDue to the change in monitoring and evaluation plan,

a baseline study originally intended to be implemented

in 2013 will now be conducted in the second quarter

of 2014. In preparation for Phase 2, a survey has been

conducted to determine the project sites for full

implementation, while sub–projects under Phase 1 will

be completed by the end of February 2014. Other

activities to take place in the first quarter are the design

of a results measurement system and the implementation

of a baseline study for Phase 2. In June 2014, 40 facilitators

will be trained in the Creative Empowerment Process

to ensure that they have the skills and capacities to

conduct further training for future CC 2 facilitators and

to implement CC 2 activities when the project is rolled

out in Phase 2. In addition, social media platforms and

a website will be developed to document and promote

the use creative approaches to enhance participatory

community planning.

The review of Phase 1 activities will be completed by June

2014, which will identify issues to be addressed and inform

the operational arrangements to be put in place prior to

Phase 2. It is expected that Phase 2 will implement CC

2 in 50 sub–districts starting in June 2014. In preparation

for Phase 2, two supervision missions are also planned

in the first quarter of 2014, including a joint mission with

PMD and donors to identify pathways to mainstream CC

2 in PNPM.

Other plans in the pipeline involve potential partnership

with other PNPM projects; the development of an advance

competency module for the Professional Certification of

Community Facilitators on the use of creative approaches

to enhancing participatory community planning;

and the incorporation of a knowledge and learning

component in the project to study the different ways in

which culture contributes to community empowerment

and poverty reduction.

Villagers in the Bajoe Village in South Sulawesi perform a play they developed with the support of Creative Communities 2 sub grantee. The play brought together members from the Bajoe ethnic moniority and the Bugis majority to examine local issues.

CREATIVE COMMUNITIES 2 (CC 2) | 105

LESSONS LEARNEDFor the project to have an impact on PNPM and generate

wider spill–over effects, it is important to develop

a systematic way to integrate CC 2 into PNPM’s main

operations. The pilot activities show that the project is

most effective and sustainable when PNPM facilitators

participate directly in CC 2’s activities. However, the lack

of formal communication between PMD and local teams

has limited the ability of facilitators to participate more

directly in the project. This implies that a at the national

level, a formal partnership should be established with

PNPM/PMD. At the local level, the CC 2 project team

should continue to work closely with PNPM provincial

and district teams, including PMD officials, to implement

its activities.

In terms of operation, the three–month period for CC

2 facilitators to implement community theatre and video

activities was inadequate to ensure the continuity of

activities. In view of this, Phase 2 of the project will pair

local CC 2 facilitators with community theatre/video

practitioners at the village level. It will also provide

a longer facilitation period. At the regional level, CC

2 will create the position of project coordinator, whose

main responsibility is to communicate and coordinate

with PNPM facilitators and PMD officials to provide CC

2 facilitators with more time to focus on interactions with

the community.

CC 2 facilitators have faced challenges in finding

participants who have time to take part in the theatre

and video activities. Some villagers also thought that

they need to have knowledge in theater or video in order

to take part in the project. This underlines the need to

strengthen the project’s communication outreach and

efforts to seek participants through existing institutions,

such as religious institutions, youth groups, women

committees. Aside from that, the project team has learned

that sub–grant recipients often lack an understanding of

PNPM and the projects they have proposed do not always

address issues related to PNPM. Therefore, the design of

the future sub–grant component will provide more time

for local arts and cultural groups to understand PNPM and

its operations in order to develop activities that better

facilitate the achievement of PNPM’s goals.

Cupak Gerantang , a traditional mask theater of North Lombok was one of the sub–grant activities of Creative Communities 2. Prior to their performance, the actors rehearsed the play during PNPM village meetings and used the interactive art form to solicit ideas from villagers on community planning.

106 | 2013 PSF PROGRESS REPORT

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Difference with cumulative tar-get for 20132012 2013 2014

Project Development Objective: To carry out preparation and pilot activities for Creative Communities II (CC 2), and ensure the design of the program uses locally–appropriate cultural approaches to enhance public partici-pation and increase voices of the poor and marginalized groups in decision–making.

Project design modifications completed & CC 2 formally launched

Project de-sign modifi-cations

n/a CC 2 formally launched

Concept note and opera-tional plan de-veloped

Project design and op-erational manuals com-pleted

Oper-ational plan for Phase 2. Official launch of CC 2

Project design mod-ified and tested.

Review of Phase I Operational Setup will fur-ther inform the implementation arrangement of Phase 2.

Pilot indicates improve-ments in public partici-pation

Average # participants per PNPM community forum.

20–40 50–100 Pilot activities carried out

50–100 50–100 70–200 On target

Pilot culture activities conducted to inform design of CC 2

# cultural presenta-tions that give voice to poor and marginal-ized people.

Poor and marginal-ized peo-ple are less likely to participate in village planning

12 Pilot activities carried out

7 15 7 presen-tations of communi-ty’s theatre and video outputs

Creative Empow-erment Process completed and 7 presentations held. Sub–grant-ees will deliver another 8 cul-tural activities in 2014.

Field as-sessment to identify existing cul-tural activities & potential locations

Field assess-ment

n/a Field as-sessment complet-ed

Field as-sessment conduct-ed

Field assess-ment report com-pleted

Field assess-ment report completed

Field assessment report complet-ed and shared with stakehold-ers.

Pilot indicates that poor & marginalized people are better able to raise their concerns

# partici-pants in pi-lot activities

n/a 1500 n/a 1000 1500 2000 1000 (Creative Empowerment Process compo-nent complet-ed, sub–grant component ongoing.)

Training on creative ap-proaches

# people trained

0 40 n/a 0 40 33 Training was provided to 33 village cadres in Landak upon request from the provincial team. Training of train-er postponed to June 2014 to align with Phase 2 implementa-tion.

Baseline study completed

Baseline study

n/a Design of baseline study

TOR devel-oped for baseline study

Baseline study complet-ed

TOR devel-oped for baseline study

A slight delay (Baseline study planned for Q2 2014.)

KEY RESULTS

One of Creative Communities 2 sub grantees use dance to facilitate communication between the marginalized Buddhist community of Tebango Bolot hamlet in North Lombok with the rest of the village.

108 | 2013 PSF PROGRESS REPORT

The Malaka Creative Community study group consists

of village youths, mostly young women, in a village in

North Lombok. The group interviews people at their

homes on issues such as waste management, the quality

of the local health post, and the PNPM Mandiri program.

The group records these interviews on a handy–cam,

before presenting the material to other members of

the community, also in their own homes. Following

the presentation, members of the group record

the responses of the audience. It’s an interactive process

that allows people who don’t often take part in village

meetings to express their opinions and hear what other

people think.

In the late afternoon, Sarimah and several other

teenage women arrive at the home of Ibu Haerani,

one of the longest serving of volunteer health workers

at the posyandu, the community health post, in the hamlet

of Pandanan, in North Lombok. They are carrying video

cameras, recorders, and a tape deck, which they set up on

a covered bamboo screen in the yard, as Ibu Haerani and

a handful of friends and neighbors watch, seated casually,

chatting, snacking and drinking tea. Before turning on

the video player for Ibu Haerani and the other women,

the video team records the following interaction between

Sarimah and Ibu Haerani on a handy–cam:

Sarimah: Do you know what this video is about? Do

you know why we are making it?

Haerani: No, not yet. No–one’s told me about it.

Sarimah: We’ve been making a video to record

people’s complaints and comments about

the community health post. We went to the health

post where people were waiting for service and

interviewed them so we present their views to

the volunteer health workers, the village officials,

the midwife and everyone else so we can work

together to improve it. Do you think this video could

help us achieve that?

Haerani: So long as the video makes women realize

that they have to come to the health post with their

babies, it’s a good idea. That’s the most important

message to get across. That’s the only way they’ll

know if their babies are healthy.

(The video presentation starts. The interview subjects

generally state that the quality of the service and medical

advice they receive is adequate, but that there are no

mattresses in the facility and that there is only a small,

uncomfortable waiting area, with no chairs.)

COMMUNITY VIDEO: BRINGING PARTICIPATION TO PEOPLE’S HOMES

Sahrun, the study group’s camera–man, records the responses of Ibu Haerani to the video–taped interviews she has just watched at the presentation.

CREATIVE COMMUNITIES 2 (CC 2) | 109

Following the presentation, the video team again starts

recording as Ibu Haerani adds her opinions to those of

the women on the video:

It’s true. The waiting area is not a nice place for

pregnant women and women with their children to

wait. They often have to wait in the sun or the rain. In

the neighboring village, the health post has a proper

veranda. It has a good roof and chairs for the women

to sit in. We still don’t have a proper building or

the right equipment. That means women don’t want

to come. Because of that, the volunteer health workers

have to work harder at door–to–door sweeping

campaigns to make them come. But we don’t have

enough volunteers for that, either. It’s really hard

finding women who are prepared to volunteer unless

you pay them a transport allowance.

In response, Sarimah, Nanda, Rifa and Lilik ask a few

questions about the allowances and the difficulty of

finding volunteers. Ibu Haerani tries to answer, with some

of the other women cutting in and interjecting with their

own thoughts. Sahrun, the only man on the video team,

keeps on recording. As Sarimah says:

We are making the video by going around to people’s

houses to ask the women, particularly pregnant

women, about their pregnancy and health of their

children, how often they take them to the health care

post to be weighed, whether they go every month or

not. We are focusing on interviewing women. As well

as pregnant women and mothers, we are interviewing

the volunteer health workers to find out their opinions

about how well the health care post works, whether

they have the equipment and supplies that they need,

what problems they face. Once we’ve integrated

the new materials with the old materials and

conducted more interviews, we’ll be ready for the final

presentation. We’ll invite the village head, the PNPM

staff, and everyone in the community.

Sarimah and her friends are making the video as part

of the Creative Communities project, which supports

community groups in rural Indonesia to develop

cultural media and forms of creative expression such

as community video, theater, oral traditions and mural

painting. The idea is to use these media and forms of

expression to encourage people to consider and discuss

issues that have an impact on the community and to

work out ways of addressing these issues. As the PNPM

program is also intended to support communities to

consider, discuss and resolve issues of significance to

the community, another goal of the Creative Communities

project is to encourage members of the community to

participate in the PNPM program.

As says Roni Iwan Setiawan, the Creative Communities

facilitator for North Lombok, community video is an

effective means of involving people who don’t feel

comfortable expressing their opinions and ideas through

formal, established communications channels and forums:

I think community video is a good way of getting

people to talk about important issues. A lot of people

can’t be bothered spending the time, energy and

money to attend village meetings. A lot of the time,

they think there’s no point. They don’t like speaking

in public, or they think no–one’s going to listen to

what they say anyway. The whole idea of community

participation is usually built on attendance: if you

want to have your say on an issue, you have to go to

a meeting to talk about it. Community video changes

the paradigm. Rather than making people come to

the village hall, a video team can go to visit them

Roni provides some technical input regarding the use of the handy–cam to Sahrun, the Creative Communities study group’s cameraman.

110 | 2013 PSF PROGRESS REPORT

in their own home, where they feel comfortable

and in control. You can record their ideas on an

issue and present them to other people. The other

people can then respond in turn. So, it’s not just

about the team making a video and presenting it to

a passive audience. It’s an interactive process that

involves people. The people making the video and

the audience are the same people.

At village meetings, the people who get up and talk are

often respected individuals in the community, those with

power and prestige. They are often older men with some

official position and economic power, or at least with close

relations to these men. The Creative Community project

hopes to involve different groups of people, including

young women and men, people with bright, original ideas

who don’t usually get listened to. Roni says that when he

first worked to establish the community video project in

Malaka, he deliberately targeted youths:

We went to a football match between villages and

to the strategy meetings held beforehand. We

interviewed and videotaped the kids. We edited

the tape and played it back to them. The kids got to

see how video could be used to record and document

something they were involved in and really into. We

wanted to get young people to participate. They

aren’t so busy with work and with their family. They

are still passionate about things. And they usually

understand technologies such as digital cameras,

videos and social media better than their parents.

For once, they have an advantage over people older

than them.

Roni’s first attempt to show the young people how

community video works involved a soccer match,

an activity dominated by adolescent males. At first,

the community video team consisted mostly of these

young men. However, after a very short time, a lot of them

got bored and dropped out. Two teams of 15 youths from

two hamlets in Malaka village eventually participated in

the activities which took place from April to June 2013.

Their video works were presented in three screenings and

exhibitions in the village. After the completion of these

activities, five members decided on their own initiative

to develop an additional activity, the video survey on

the health services provided by the community health

post, which was meant to support the PNPM Generasi

program. Of the five members, four were young women.

As Sarimah says:

I think girls are more interested in community video

project because boys are too busy with their own

activities. They play football and perform in bands.

There aren’t so many activities for girls, so the girls

were keener on sticking to it.

According to Sarimah, at first, many people had trouble

taking a group of young women with video cameras

seriously, and didn’t see the point of taking part. However,

attitudes have begun to change:

At first, people in the community weren’t very

supportive. Some people didn’t understand what

we wanted from them when we tried to interview

them and thought it was a waste of time. Other

people said that we should pay them money if we

wanted to interview them. But we kept at it anyway.

I think people’s attitudes are changing now. I think

people are beginning to see the video production

actually helps everyone in the village. For example,

just recently, after we began making a video about

Sarimah (left); Nanda Yuly Fitri (middle); and Rifa Liyani (right), all members of the Malaka Creative Community study group, presenting video material at the house of Ibu Haerani, a long–serving volunteer health worker.

CREATIVE COMMUNITIES 2 (CC 2) | 111

the health post, a local bank gave money for free

medical services. People in the village saw that

the video helped make that happen. So, now they

think there’s some point to it.

The Creative Communities project is a pilot project

supported by the PNPM Mandiri program, so when

Sarimah and the other members of the study group first

became involved, they had frequent contacts with H.

A. Ichwan, who at the time was serving as the head of

the PNPM’s village–level Activities Management Unit (UPK).

During their discussions with him, they discussed people

in the village’s lack of knowledge and understanding of

the PNPM program, which Pak Ichwan says was largely

due to a former village head’s own ignorance and

unsupportive attitude. As Sarimah says:

We found that most villagers didn’t know much

at all about PNPM, so we spent a whole day on

making a video that we called “A day searching for

PNPM”. We went out and asked ordinary members of

the community what PNPM was, and none of them

could answer the question. So we visited the village

head, and he couldn’t answer, either. We met with

the workers who were actually involved in building

the road that was a PNPM project. They didn’t know

what PNPM was, either. So we went to the sub–district

office to meet the sub–district facilitator. We showed

him the video we had produced and discussed

our findings. He tried to explain the principles of

the program and explained why it was important

that the community got involved and how they

could attend meetings. We recorded his responses

and edited all the material that we had collected to

present to members of the community at their houses.

Then we recorded their questions and responses to

the explanations provided by the facilitator. Finally, we

gave a final presentation of our findings to a group

including the village head and other members of

the community. That’s the basic methodology that

we use.

Since the making of that first video, in October 2013,

Pak Ichwan himself has been elected to the position of

village head. Perhaps not surprisingly, given his previous

involvement both with PNPM and the study group, he

remains strongly supportive of the project:

I saw that the video helped make people understand

the program better. Since I’ve been the village

head, I’ve given my full support to the study group’s

activities. Apart from helping people to understand

PNPM better, it’s a useful tool for getting people

involved in other activities. We could use it to get

people to manage rubbish properly or to encourage

people to grow vegetables in their gardens. We could

use it to make sure that kids get fed properly, or

whatever issues we all decide are important.

At present, the community video study group’s activities

are supported through Creative Communities. As with

most pilot projects, the funds to support the activities

won’t last forever. What happens to the project after

the pilot study finishes? Pak Ichwan says:

So far, all the village administration can do is to

provide the study group with a place to work in

the village hall. We’ve given them some chairs

and a table. We give them paper and let them use

the printer. In the future, I’d like to see the village

provide funds to buy equipment and so on. I’d like

to see the team integrated within the structure of

the village organization so that they are eligible

to receive funding from the village budget. We

could pass a resolution to recognize that the group

plays a role in getting the community involved and

becoming more aware. The group could be officially

recognized as being a communications and public

relations work unit. That way, they could keep on

doing what they are doing now without support from

the pilot project.

To view the videos produced by the Creative Communities

Study Groups in Malaka, please visit the following sites:

Sehari Mencari PNPM (“A Day Searching for PNPM”):

A video prepared by the Pandanan study group to

determine how much villagers knew about the PNPM

program, with input from the village head and PNPM

program implementers:

http://www.youtube.com/watch?v=wIjEcSpbAE4

Riset Visual Presentasi Dusun Pandanan (“Visual

Research Presentation in Pandanan”): A video focusing

on waste management and showing the process

of presenting videotaped material to members of

the community and to the village head to elicit further

feedback and input, which is recorded and integrated with

the final product:

http://www.youtube.com/watch?v=paK8tRTpfvs

Many members of the Suku Anak Dalam community, including this family, squat in makeshift shelters on plantations, where they are subject to frequent evictions.

RECOGNIZING that PNPM’s broad brush approach

was not reaching the most marginalized, who require

more intensive and specialized facilitation, the PSF

opened a new Window in 2011 to channel resources

to Indonesian civil society organizations (CSOs) who

work at the grassroots level to help marginalized people

develop new skills, access services, learn about their rights

and engage with the Government. PNPM Peduli aims

to empower the marginalized groups and improve their

socio–economic conditions by strengthening the capacity

of Indonesian CSOs. The project in its pilot phase has

worked with 72 Indonesian national and local CSOs to

implement or support activities that have benefited

437 marginalized communities in 91 districts across

25 provinces. An increased number of beneficiaries are

reporting improvements in their access to education,

health and legal services and in their capacity to

come together to establish and manage their own

small businesses. In 2013, CSOs worked together with

the Government, under the leadership of the Deputy

Minister for Poverty reduction (under the Coordinating

Ministry of People’s Welfare, or Menko Kesra) to design

a second phase of the project. The project facilitated

a process of intensive discussion regarding the project’s

positioning and its potential to become a more strategic

platform to address root causes of exclusion. A critical step

was made in 2013 firstly as a new development objective

was introduced to position Peduli II as a social inclusion

program and later as a new arrangement was adopted to

support this new strategic framework, whereby a single

grant will be awarded in 2014 to an implementing partner,

who will provide operational oversight and management

to the program’s national and local CSO partners.

The Disabled People Organizations (DPOs) Window

was approved in September 2012 to support DPOs in

their ability to improve the lives of people with disabilities

(PWDs) and to advocate for inclusive development in

their local communities. In 2013, to inform the design

of the project, an extensive mapping and assessment

of DPOs was undertaken in Eastern Indonesia where

poverty rates and incidences of disability are higher

than the national average. Since the project uses an

on–granting scheme similar to that of Peduli, one of

the main focuses in 2013 was on the pre–selection

screening of organizations with the potential to fulfill

the role of an implementing organization. During

the process of mapping and multi–stakeholder

consultations, it has become clear that perceptions

regarding the nature and capacities of DPOs still require

change and that ensuring access of PWDs to development

programming is a complex process. The lessons learned

from the project preparation and field findings will be

valuable input for the implementation of the project

in 2014.

WINDOW THREEON–GRANTING TO INDONESIAN CIVIL SOCIETY

2008 2009 2010 2011 2012 2013

96

10

30

12

44

Approved CommitmentsDisbursements

Figure 18. Funds committed and disbursed under Window Three, 2008–2013 (US$ million)

114 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWOver the past decade, the proportion of Indonesia’s

population living below the poverty line has fallen from

23.4 percent in 1999 to 11.4 percent in 2013.33 At the same

time, a rising Gini coefficient shows that inequality is

increasing.34 Recent research also shows a growing

intolerance towards certain marginalized populations such

as religious and sexual minorities.35 In general, it is known

that exclusion based on factors such as gender, race,

religion, ethnicity and sexual orientation can lead to lower

social standing; lower levels of income; limited access to

employment and services; and the lack of voice in local

and national decision making.36 Specifically for PNPM

Mandiri, a study conducted in 2010 showed that some

marginalized groups did not benefit, or benefitted to

a lesser extent than other groups from the program.37 For

reasons including geographical isolation, limited access

to information, and discrimination, members of these

groups have often been left out of planning processes,

or their needs and aspirations have not been reflected in

community decision–making.

In response to a growing awareness that the PNPM

Mandiri program is not meeting the needs of marginalized

groups, the Government launched PNPM Peduli in

2011. This in part reflects and also contributes to

the Government’s priority expressed in its National

Mid–Term Development Plan 2010–2014, which aims

to achieve inclusive and equitable growth for realizing

the potential of all citizens. The stated development

objective of this program is to strengthen the capacities

of Indonesian civil society organizations (CSOs) to reach

and to empower marginalized groups to improve their

socio–economic conditions. More broadly, PNPM Peduli

aims to improve the opportunities, abilities and standing

of socially excluded people and thereby to enable them to

take part in society. Being the Government’s first initiative

to exclusively focus on social inclusion it is an innovative

experiment and an iterative work–in–progress.

To date, PNPM Peduli has engaged with a total of

72 Indonesian national and local CSOs to implement or

support activities that have benefited 437 marginalized

communities in 91 districts across 25 provinces

throughout Indonesia. Pilot activities at the community

level cover three main areas: (i) economic livelihood; (ii)

access to public service; and (iii) access to social justice.

The program has supported the development of 70 small

businesses being run by current and former sex workers,

transgendered persons, female victims of domestic

violence, poor female migrant workers, indigenous groups

and ex–political prisoners from 1965/66, improving

their livelihoods and the degree of their integration into

the broader community.

For the implementation of the program, grants are

awarded to three national CSOs, selected through

a competitive selection process. For the period from

2011 to 2013, they were Partnership for Governance

Reform (Kemitraan); the Association for Community

Empowerment (ACE); and the Institute for Human

Resource Study and Development under Nadlahtul Ulama

Summary Information

Status Task Team Leaders Implementing Agency

Active Natasha Hayward (nhayward@worldbank.org)

Lakpesdam NU, Kemitraan, ACE

Start Date to Closing Date

30 June 2011 to 31 May 2014

Geographic Coverage Approved Budget

91 districts in 25 provinces US$ 27,865,000

WINDOW THREE

PNPM PEDULI

33 World Bank (December 2013) Slower Growth, High Risks, Indonesia Economic Quarterly.

34 The Gini coefficient has increased from 0.31 in 1999 to approximately 0.41 in 2013 ( http://www.bps.go.id/eng/tab_sub/view.php?kat=1&tabel=1&daftar=1&id_subyek=23&notab=6)

35 A study conducted by Indonesian Survey Circle in 2012 shows that intolerance towards sexual minorities has risen from 64.7 percent in 2005 to 80.6 percent in 2012, and intolerance towards Shia populations from 26.7 percent in 2005 to 48.1 percent in 2012 (www.lsi.or.id).

36 World Bank (2013) Inclusion Matters: The Foundation for Shared Prosperity, p5.

37 Akatiga (2010) Marginalization and PNPM Mandiri study

A mother and her child in Wamena

116 | 2013 PSF PROGRESS REPORT

(Lakpesdam NU). These national implementing partners

provide sub–grants to 69 local partners, which may be

CSOs or, in the case of Lakpesdam NU, branches of NU. In

turn, these local partners design and implement activities

in partnership with marginalized groups to address their

specific, strategic needs. The program also provides

additional resources to improve the organizational

capacity of these local partners in the area of program

management. In short, the Peduli pilot phase has three

main focuses:

zz Facilitating the creation of partnerships between

CSOs and marginalized groups, to implementation of

innovative approaches to empowering marginalized

groups so that their members become more

self–reliant, more able to access services and better

equipped to participate in social, economic, political

and cultural life;

zz Strengthening the capacity of local CSOs to

implement participatory and inclusive programs

zz Increasing the capacities of national CSOs to manage

small grants; identify and provide technical support to

CSO partners that work with marginalized groups; and

develop strategies to translate their knowledge and

learning to bring about change at local and national

levels in the area of policies, regulations and/or

societal attitudes.

PROGRESS IN 2013 Over the year, national and local CSOs worked together

with the Government, under the leadership of the Deputy

Minister for Poverty Alleviation (under the Coordinating

Ministry of People’s Welfare, or Menko Kesra) to design

a second phase of the project. The PSF facilitated

a process of intensive discussion and debate among key

stakeholders regarding the project’s positioning and its

potential to become a more strategic platform to address

root causes of exclusion. As part of the design process,

in February 2013, Menko Kesra led a national seminar

on Enhancing Social Inclusion and Equitable Growth.

The seminar initiated an open discussion on matters

related to Indonesia’s social inclusion priorities and policy

PNPM Peduli reaches the marginalized people in 25 provinces. One of the beneficiary is Kajang Tribe in South Sulawesi

PNPM PEDULI | 117

options to promote inclusive development. The seminar

was attended by approximately 50 representatives from

line ministries, CSOs, development partners, tertiary

institutions and research institutes.

A critical step was made in 2013 as consensus was built

across the stakeholder network to raise awareness of

the PNPM Peduli and to define a framework to determine

the extent to which the program has been successful.

This process formed a basis for the further refinement of

the program development objectives, result frameworks

and indicators in such a way that they were adequate to

address the complexity of issues around social inclusion in

Indonesia, to strengthen targeting and to address the root

causes of social exclusion.

In July 2013, the JMC approved funding for PNPM Peduli

2 to a value of US$16.7 million. A new development

objective will be introduced in Phase 2 that strategically

positions PNPM Peduli as a social inclusion program

and emphasizes its role in developing lessons learned

and knowledge products to serve as inputs for

the development of relevant government policy. To

prepare for the implementation of Phase 2, in the second

half of 2013, the project developed quality assurance

tools to assist program partners to operationalize social

inclusion programs at the community level. Quality

standards have been developed in collaboration with

national and local partners on the basis of identified good

practices and field–based learning. The tools include

mechanisms to enhance project accountability, to ensure

the provision of relevant capacity building and technical

support to local partners and to improve the quality of

field monitoring by national partners.

In terms of delivery, the project provided national CSOs

with technical and financial support to design their own

social inclusion programs. Programs were designed on

the basis of the national CSOs’ mission, expertise and

experience, with the aim of addressing systemic issues

related to discrimination, stigmatization and intolerance.

In the second half of 2013, four of these programs were

rigorously appraised and a number of revisions were made

along recommendations. In the end, these programs

were endorsed by a technical review team consisting of

government stakeholders, donors and the PSF. The CSO

programs in Phase 2 will continue to support local CSOs to

implement activities with socially excluded groups and to

produce inputs for revising and developing government

policy on social inclusion and for changing societal

attitudes more broadly.

In 2013, the total of 14,645 people benefited from

the PNPM Peduli (61 percent female), a 12 percent increase

from the number in 2012. At the same time, the number

of CSOs reporting engagement with the local government

on social inclusion issues increased to 62, a seven percent

increase from 2012. In 2013, 8,254 people benefited from

improved access to health and education services, an

increase from the number of 5,688 reported in 2012. Over

the year, 38 CSOs reported specific changes made by local

governments in response to their advocacy work.

FUTURE PLANSTo support the effective implementation of Phase 2 under

the new strategic framework, a single grant will be

awarded in 2014 to an implementing partner, whose

role will be to provide operational oversight and

management to the program’s national and local CSO

partners. Accordingly, there will be a number of changes

in the institutional arrangement through which Phase II

is implemented. In addition, as a result of the planned

restructuring of the PSF, the Phase II of PNPM Peduli will be

managed under a direct Australian Department of Foreign

Affairs and Trade (DFAT ) grant, with a new management

design aimed to facilitate a scale–up and to enhance

the support structures for CSOs.

In anticipation of these changes, during the first half of

2014, the program will carry out bridging activities to draw

the first phase to a close and to prepare local partners for

a transition to the new implementation arrangements.

There will be a strong focus on learning and reflection

as a means to inform the Phase 2. The development

of the quality assurance tool will be finalized and its

use socialized through training and field mentoring

activities conducted in cooperation with national and

local partners.

LESSONS LEARNEDWhen PNPM Peduli was launched in 2011, it was primarily

viewed by the stakeholder network as a means of

achieving poverty reduction rather than social inclusion,

which is a relatively new priority for development

initiatives. Thus, expected outcomes of the program

tended to be limited to increased participation in

community development planning processes, enhanced

economic opportunities and improved access to health

and education services on the part of marginalized

groups. Since its inception, therefore, efforts have been

made to generate new knowledge and learning for

118 | 2013 PSF PROGRESS REPORT

3

69

437

NationalExecutingOrganisations

LocalNGO’s

Groups ofmarginalizedpeople

4%Transgender(456)

28%Men

(5,229)68%Women(8,960)

Figure 19. Number of Peduli partners

Figure 20. Composition of Peduli Beneficiaries

promoting a more comprehensive understanding across

the stakeholder network regarding how social exclusion

is experienced; what are the characteristics of those

who are typically excluded; and how to promote social

inclusion. It has also become evident in the process

of implementation, that in addition to working with

those who experience exclusion, separate strategies are

required for working with the broader community on

behavioral change. PNPM Peduli activities in transgender

communities illustrate this point well. Some activities

built the confidence of transgender youth and provided

them with new skills while other activities focused on

working with religious leaders and the whole community

to build tolerance and acceptance. Furthermore, to

enable more effective and strategic engagement with

the Government on priority issues related to promoting

social inclusion, the project needs to shift away from

discrete and disassociated project interventions to a more

programmatic approach. This will require a portfolio of

larger projects better equipped to mobilize partnerships

with CSOs and other organizations with the expertise to

focus on specific exclusion issues.

PNPM PEDULI | 119

Result Indicators

Unit of Measure

Base line

Total Target

Targets (cumulative) Cumulative Progress as of Dec 31, 2013

Difference with cumulative target for 20132012 2013 2014

Project Development Objective: To strengthen the capacities of Indonesian CSOs to reach and empower marginalized groups to improve their socio economic conditions.

# of direct beneficiaries from margin-alized groups (m/f/transgen-der)

# of direct beneficia-ries

n/a Total 11,041 6,983 (f )–63.25% 3,974 (m)–36% 84 (t)–0.75%

Total 9,125 5,793 (f )–63% 3,247 (m)–36% 85 (t)–1%

Total 10,037 6,349 (f )–63.25% 3,613 (m)–36% 75(t) –0.75%

Total 11,041 6,983 (f )–63.25% 3,974 (m)–36% 84 (t)–0.75%

Total 14,645 8,960(f )–61.2% 5,229(m)–35.7% 456(t)–3.1%

4,608 (More marginalized people are being reached by CSOs .)

# of communi-ty groups/vil-lage branches engaging with local govern-ment on their rights, access to services and improving livelihoods

# of groups/branches

n/a 488 404 444 488 437 –7

# of funded local projects working with marginalized groups

# of proj-ects

n/a 57 66 50 (Phase 2: Peduli will reduce # of CSOs)

57 66 Peduli had 66 partners in 2012, 5 CSOs have dropped out leaving 61 active partner-ships; Phase 2 did not start in 2013.

# of provinc-es/district/vil-lages in which Peduli projects are working

# Prov-inces/districts/villages

n/a Provinc-es–24 Districts–91 Villag-es–280

Provinc-es–24 Dis-tricts–91 Villag-es–231

Provinc-es–24 Districts–91 Villages–254

Provinc-es–24 Dis-tricts–91 Villag-es–280

Provinces–24 Districts–91 Villages–231

Villages: –23

% of CSO/Branch part-ners comply-ing fully with PSF Fiduciary Standards

% CSO/Branch projects

n/a EOs 100% CSO/Branch 80%

EOs 100% CSO/Branch 60%

EOs 100% CSO/Branch 75%

EOs 100% CSO/Branch 80%

EOs 100% CSO/Branch 91%

16% (More CSOs complied fully with PSF Fiduciary Stan-dards)

# of CSOs/branches staff participating in capacity building activ-ities

# of CSO/branch staff

n/a 147 122 134 147 184 62 (No new staff trained in 2013, but a refresher train-ing organized for staff who had already been trained in 2012.)

# of CSO/Branch part-ners engaging with local government related to marginalized people

# of CSO/branch

n/a 40 40 33 (Phase 2: Peduli will reduce # of CSOs)

40 59 19 (More CSOs are engaging with local gov-ernment as ac-tivities to gain any support.)

KEY RESULTS

120 | 2013 PSF PROGRESS REPORT

In Dharmasraya, SSS Pundi, a local CSO formed to

encourage the responsible use of natural resources

and to improve the socio–economic conditions of local

communities, has established a strong partnership with

the local government to test new approaches to dealing

with the issues affecting the Suku Anak Dalam, an ethnic

group that has lost access to its forest resources and

whose members live on the margins of the district’s

rural communities.

The Suku Anak Dalam is an ethnic group that has

traditionally lived in the lowland forests in Jambi and West

Sumatra. Until very recently, most members of this group

alternated between shifting agriculture and digging for

wild yams, hunting, trapping, fishing and collecting forest

products for trade. At least until the 1960s, interactions

between this group and members of neighboring rural

communities were very rare and, when they took place,

often uneasy. With very different cultural values, belief

systems and ways of life, the predominantly Muslim

villagers have often regarded the Suku Anak Dalam as

‘uncivilized’ or ‘undeveloped’ (belum madju), ‘primitive’

(primitif), ‘dirty’ (kotor/jorok), ‘smelly’ (bau), ‘stupid’ (bodoh),

‘without religion’ (belum punya agamo).38

In return, traditional Suku Anak Dalam social and religious

beliefs also emphasized and reinforced the differences

between them and members of the settled rural

communities. Thus, while they hunted wild pig, they held

strong taboos against eating the meat of domesticated

animals, such as beef and chicken. They also maintained

taboos against using soap; wearing modern clothing;

or traveling outside the community’s territory without

the permission of family leaders.39 Pengendum, one of

the first members of a community in the Bukit Duabelas

national park to attend an informal school in that

region described the reaction of his community to his

involvement in the school only a decade ago:

Many of the Suku Anak Dalam who lived in the forest

were still very scared of outsiders. They were even

scared of the students at the school, unless they knew

us personally. They still thought we might be bringing

A CIVIL SOCIETY ORGANIZATION ASSISTS A DISTRICT GOVERNMENT TO BUILD A PLAN FOR A MARGINAL GROUP

Mahendra Taher, the Executive Director of SSS Pundi, standing next to Adi Gunawan, the district head of Dharmasraya, who is holding a copy of the Strategic Plan that they developed in cooperation.

PNPM PEDULI | 121

sickness and disease from outside. We could go into

the forest to meet our families, but if we were wearing

Indonesian clothes, we weren’t allowed to attend

ritual ceremonies.

Since the development of the trans–Sumatra highway

in the late 1970s, vast sections of the lowland forests

where the Suku Anak Dalam lived have been logged or

converted for use as rubber and palm oil plantations. In

Jambi, between 1990 and 2007 alone, more than one

million hectares of primary rainforests were cleared,

leaving approximately 27 percent of the area that had

existed 30 years previously.40 With the rapid depletion of

the forests, many groups of the Suku Anak Dalam have

now lost access to the resources that used to provide

them with livelihoods and are living on the margins of

rural communities, frequently squatting on private or

public land. As says Sutono, the program director at SSS

(Sumatra Sustainable Support) Pundi responsible for

implementing a program to benefit the Suku Anak Dalam

under the PNPM Peduli program:

In the areas around the Trans–Sumatran highway,

such as in Dharmasraya, most of the forests have

been cleared. In these areas, the Anak Dalam usually

squat on land cleared for use as plantations, on

the fringes of the villages. They aren’t fully integrated

into the general community, but they have far more

frequent interactions with outsiders than they used

to. The biggest issue they face is lack of certainty

regarding land rights. They usually live in temporary,

make–shift dwellings of simple bamboo platforms

covered with tarpaulins on privately owned plantation

land, and are subject to constant eviction. People

describe them as ‘nomadic’, but that’s often not

a matter of choice, it’s just that they don’t have legal

land rights and are constantly forced to move.

Sutono says that as pressure on the Suku Anak Dalam’s

traditional resources has increased and interactions

between them and rural communities have become

more frequent and intense, the Suku Anak Dalam have

increasingly been recognized as a “problem” that needs

to be addressed. Programs implemented by government

agencies at both national and district levels aim to

assimilate the Suku Anak Dalam into mainstream

Indonesian society. In the past, this was often through

poorly planned and implemented resettlement programs

that were intended to integrate the community

by encouraging its members to adopt the patterns of

production and culture of the settled communities

in the region. For example, in 1994, the Indonesian

Department of Social Welfare established a settlement

in Bukit Duabelas, in which several hundred Suku Anak

Dalam families were each provided with homes, two

hectares of palm oil, domestic animals and tools and

a year worth of rations. By the end of the year, all but two

families had sold the tools and animals and abandoned

their farms to return to the forest, with the majority

complaining that not only was the settlement entirely

unsuited to their needs, the supplies and facilities were

vastly inferior to those provided to Javanese transmigrants.

They also complained of enforced conversion to Islam,

official and community prejudice and discrimination, and

blatant corruption.41

38 “The Sky is our Roof, the Earth our Floor: Orang Rimba Customs and Religion in the Bukit Duabelas Region of Jambi, Sumatra”, Steven Sager (2008), School of Archaeology & Anthropology, College of Arts and Social Sciences, The Australian National University, Page 4

39 Ibid, page 11440 Ibid, page 27841 Op cit, page 345

Sutono, waiting for a group of Suku Anak Dalam to return from a hunting trip in Dharmasraya.

122 | 2013 PSF PROGRESS REPORT

Sutono says that in the era of regional autonomy,

a number of districts, including Bango and Dharmasraya,

have recognized the extremely low rate of use of health

and educational services by members of the Suku Anak

Dalam community and have tried to address this:

In terms of accessing services, these days, the Anak

Dalam don’t usually face explicit official discrimination.

If anything, schools and community health centers

relax their requirements for members of the Anak

Dalam community. For example, in many districts,

there are often informal understandings that Anak

Dalam don’t have to present identity cards to use

services. In some cases, they aren’t charged for using

schools or health services, even when charges for

the use of services are standard. But even so, these

services tend to have a passive orientation towards

the Anak Dalam. They say that they are prepared to

serve Anak Dalam who come to their facilities and

request them, but they don’t take proactive steps to

reach out to them.

Sutono explains why the rate of use has remained

very low:

These services aren’t designed to meet the specific

needs of the Anak Dalam. For example, because

they face constant evictions and are often forced to

move their camps, it’s very difficult for them to send

their children to school. Apart from the practical

difficulties, such as enrolling children in school when

their parents are constantly being forced to shift

location, the big problem is the lack of demand.

The biggest problem isn’t that the Anak Dalam are

physically isolated. Rather, they are isolated by their

lack of knowledge of how services work and by their

low expectations regarding their right to access

these services.

Sutono says that district government measures in

Dharmasraya and Bango have failed to either address

Sutono, visiting members of the Suku Anak Dalam community.

PNPM PEDULI | 123

the specific circumstances in which the Suku Anak Dalam

live or to address the lack of demand for a simple reason:

Usually, government agencies try approaches that

don’t work because they just don’t have enough

in–depth knowledge about the community. That’s

understandable, government agencies have limited

resources and have to address the needs of many

different segments of the community. It’s not realistic

to expect them to develop the high level of expertise

required to address these needs.

In comparison a number of small, activist CSOs in

the region, such as Sokola42 and WARSI43. The former,

in particular, had a significant success with its informal

school in the Bukit Duabelas national park, with

committed, activist teachers making efforts to develop

a curriculum that enabled members of the community

to understand forestry regulations and to conduct

business negotiations with villagers. To meet the needs

of the semi–nomadic groups it was intended to serve,

the school originally operated from tents and frequently

shifted location. While Sutono admires the approach this

project adopted, he also says that because it operated

largely without reference to the district agencies’ activities,

the scope and duration of its impact has been limited.

Rather, Sutono believes that the most valuable role that

SSS Pundi can play is to conduct research into the issues

facing the Suku Anak Dalam and to test approaches

towards addressing these issues. With evidence to show

that these approaches can work, SSS Pundi can then lobby

district governments to incorporate them into their core

activities. As Sutono says:

A CSO doesn’t have the resources that a district

agency does. A project operated by a CSO might last

for a couple of years, until the funding for that project

runs out. It’s not sustainable. SSS Pundi isn’t trying

to fulfill the functions of the health and educational

agencies, we are piloting new approaches to see if

they work and then presenting our data to these

agencies so that they can adopt these approaches.

For example, we test a solution like mobile health

clinics, with doctors coming out to the forest to

pre–arranged locations.

This approach has resulted in a significant success in

the district of Dharmasraya, in West Sumatra, where

SSS Pundi played a major role in assisting the local

government to develop a Strategic Plan for the Suku

Anak Dalam. The plan provides a solid legal basis for

health, educational and other agencies to adopt specific,

affirmative approaches to providing services to Suku Anak

Dalam and to ensuring that they are able to meet their

basic needs. Sutono describes how the relationship with

the district government developed:

With district administrations, the support

of the district head is vital. If a Bupati shows

a strong interest in a particular area, the officials of

the planning agency and agencies such as health and

education are often influenced by that enthusiasm

and make it a priority for their own activities. SSS

Pundi already had a good relationship with the Bupati

of Dharmasraya, Pak Adi Gunawan, through our

involvement in a health program not specifically

related to the Anak Dalam. Then, in 2011, the Bupati

attended a workshop on the aims and goals of

the PNPM Peduli program held. At the workshop,

he met Pak Sujana Royat, the Deputy Minister for

Poverty Alleviation44. From that workshop and his

discussions with Pak Sujana, he became convinced

that the national–level government was making

the inclusion of marginalized groups a priority and

that they were prepared to provide support to

achieve that inclusion, both through PNPM Peduli and

other means. I think he saw that as an opportunity to

demonstrate that Dharmasraya was prepared to take

the initiative in this area, to raise his profile as one of

the more progressive district heads in the region. So

he was enthusiastic about working with SSS Pundi on

the issue.

As Sutono says, district officials are often highly

susceptible to the influence of a district head. If he or she

demonstrates to officials that a certain issue is a priority,

then they are usually much more open to placing it on

the agenda of their own agency or department. Following

his discussions with SSS Pundi at the workshop, the Bupati

gave a small yet significant indication that he was placing

the Suku Anak Dalam on the district’s agenda:

To find out what problems the Suku Anak Dalam face,

I jumped on a motorbike and went out to visit them!

I spent the whole day out at their camps talking to

them to listen to what they had to say. A few of my

officials came out with me. That’s good. I want to set

a good example for them.

42 http://www.sokola.org/43 Yayasan Warsi (Warung Informasi Konservasi) — http://www.

warsi.or.id/44 Deputy Minister for Poverty Alleviation under the Coordinating

Ministry for People’s Welfare

124 | 2013 PSF PROGRESS REPORT

Sutono says that while an indication of commitment from

a district head is extremely important, it is not enough to

ensure sustained action, particularly if there is no strong

legal basis for implementing that action.

In this context, Sutono says that one of SSS Pundi’s most

significant successes in Dharmasraya has therefore been

the promulgation of a Strategic Plan for the Suku Anak

Dalam Community, in for which SSS Pundi provided

significant input based on the activities it has piloted.

Sutono explains the significance of the Strategic Plan

as follows:

This plan has the force of a district regulation. It

provides a legal basis for the implementation of

proactive, affirmative actions to benefit the Anak

Dalam community. It specifically requires these

agencies to act. As a CSO implementing a project

with a limited life–span, SSS Pundi can’t hope to

take over the responsibilities of the local agencies.

But by building bridges with the local government,

by providing them with input, we can ensure

these activities are sustained as long as the district

regulation persists. While in the commitment of new

administrations might vary, the legal requirement for

them to act will persist.

Adi Gunawan, the District Head of Dharmasraya, describe

the purpose and function of this document as follows:

The Suku Anak Dalam are members of the community.

As such, the district government has a duty to serve

them. They have exactly the same rights as other

members of the community. They have a right to

be able to access educational and health services.

We have a duty to create the conditions that enable

them to meet their basic needs for food and shelter.

At the same time, we have to recognize that we

can’t fulfill our obligations to them in the same way

that we fulfill our obligations to other members of

the community. They have their own distinct culture,

their own way of living and their own needs. This

document recognizes this by establishing a legal basis

for district government agencies to adopt specific

approaches to meeting these needs.

The Strategic Plan does not define specific actions. Rather,

it provides a basis for the district agencies to begin to take

ownership of activities tested by SSS Pundi. At present,

the level of understanding of district officials to develop

and implement these activities may still be limited, but

they do have a basis to do so. They also have a district

head who has clearly indicated that action in this area

is a priority. Finally, they have SSS Pundi or a partner

that is prepared to focus on the issue of improving

the circumstances of the Suku Anak Dalam and to provide

them with the input they need to develop activities in

these areas. Together, this provides a strong basis for

the further development of strong, affirmative programs

that meet the needs of a marginalized group for basic

services and facilitates their inclusion in the community

on terms that they can negotiate themselves.

PNPM PEDULI | 125

Women and children from the Suku Anak Dalam community

126 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWIn November 2011, the Government recognized that

mainstream PNPM programs were failing to facilitate

the full inclusion of persons with disabilities (PWDs)

and generating only minimal benefits for them. The

acknowledgement of the limited inclusion of PWDs

within PNPM programs raised questions and concerns

regarding the overall inclusion of PWDs in poverty

reduction programs throughout Indonesia. To address this,

the Government requested the development of a project

specifically geared towards empowering PWDs and

enhancing their participation through Disabled Persons

Organizations (DPOs). In particular, it was proposed that

the project be implemented in Eastern Indonesia, where

poverty rates and incidences of disability are higher than

the national average.

In September 2012, the PSF’s Joint Management

Committee approved the Disabled Persons Organizations

Window. The stated development objective of this project

is to support DPOs in their ability to improve the lives

of PWDs and to advocate for inclusive development

in their local communities. Based on instructions from

the Coordinating Ministry of people’s Welfare (Menko

Kesra) and following a diagnostic work completed in

2013, the main project will most likely be implemented

in Eastern Indonesia, with the exact sub–regions to

be decided. It is expected that the project will work

with a core cadre of 10 to 12 DPOs in the region. An

executing organization (EO) has been identified and

negotiations are underway to finalize the project design

and related grant agreement. The project will assist DPOs

with strengthening and improving their capacity and

organizational development through its four components:

(i) Capacity Building of DPOs; (ii) On–Granting to Support

DPO activities; (iii) Information Access, Networking and

Advocacy; (iv) Project Management, Monitoring, Learning

& Evaluation. The emphasis will be on learning from

both success and failure to determine how to create and

implement a genuinely inclusive project for PWDs. All four

components of the project will be implemented from July

2014 to December 2015 for 18 months

PROGRESS IN 2013Activities in 2013 were conducted to generate inputs

for the design of the main project, with a focus on an

extensive mapping and assessment of DPOs in Eastern

Indonesia; preliminary stakeholder consultations and

discussions on the needs of PWDs; and a related design for

the recipient–executed component of the project. As part

of the mapping exercise, the field team visited West Nusa

Tenggara (NTB), East Nusa Tenggara (NTT ), Maluku, North

Maluku, and Papua Barat to meet with representatives

from local governments and their agencies, orphanages,

special education schools (Sekolah Luar Biasa, SLBs),

and DPOs led by PWDs. While the complex logistics of

the fieldwork created some delays to its completion,

the project remained largely on track. A summary report

of the field assessment will be available in early 2014 for

circulation among representatives of government

agencies, DPOs, donors and other stakeholders. The

findings of this field assessment have served as an input

for the recipient project design process throughout 2013.

The PSF also initiated a multi–stakeholder forum (MSF)

planning process at the national level to more effectively

involve DPOs from areas outside Java in national meetings

related to the inclusion of DPOs and to facilitate their

involvement in government programs. In April and May

2013, preparations for a pre–MSF meeting in Jakarta

were conducted, involving 46 representatives from

DPOs, government agencies, donor agencies and other

stakeholders to discuss the terms of reference and

priorities of the MSF. Initial plans were made to sponsor

the first MSF in October 2013, with communications

training to be provided in September 2013 for less

Summary Information

Status Task Team Leaders Implementing Agency

Active Natasha Hayward (nhayward@worldbank.org)

PSF/World Bank

Start Date to Closing Date

1 October 2012 to 31 December 2015

Geographic Coverage Approved Budget

Eastern Indonesia US$ 1,800,000

WINDOW THREE

DISABLED PERSONS ORGANIZATIONS (DPO) WINDOW

DISABLED PERSONS ORGANIZATIONS (DPO) WINDOW | 127

well–equipped DPOs from Eastern Indonesia to improve

their verbal and strategic advocacy skills and to enable

their more productive participation in any such event.

However, given the parallel initiatives by other agencies

such as Menko Kesra, UNESCO, the Australia–Indonesia

Partnership for Justice and similar institutions, the DPO

Window decided to support these other agencies in

their leadership at the national level and to focus more

on enabling the effective participation of DPOs. Under

the recipient–led project, a component is planned that

will focus on networking DPOs in Eastern Indonesia to

achieve a more effective exchange of information and to

develop advocacy, both locally and at the national level.

Finally, the PSF focused on the pre–selection screening

of organizations with the potential to fulfill the role of

EO, whose role will be to design and implement the main

project. As part of this process, the PSF held discussions

with prospective partners.

FUTURE PLANSThe report conveying the findings of the DPO mapping

are being finalized and findings have been shared with

partners and other stakeholders. Seminars with key

stakeholders will follow in order to discuss findings from

the field and to elaborate further on how partners can

work more effectively with DPOs. As with the Phase II

of PNPM Peduli, execution of the DPO project will be

managed under a direct Australian Department of Foreign

Affairs and Trade (DFAT ) grant.

LESSONS LEARNEDFindings from the fieldwork and from the preliminary

multi–stakeholder forum consultations contributed

changing perceptions regarding the nature and capacities

of DPOs and thus were instrumental for fine–tuning

the main project design. While donors and government

partners tend to conflate all disabilities, it has become

PNPM facilitators, taking part in disability awareness training in Ponorogo.

128 | 2013 PSF PROGRESS REPORT

increasingly clear that the challenges faced by people

with different forms of disabilities vary considerably. This

has very significant implications for the establishment of

a program to achieve disability inclusive development.

Furthermore, the original intention of the DPO Window to

provide immediate on–grants to DPOs has been revised

in light of emerging data and findings from the fieldwork.

Given the very high proportion of DPOs in Eastern

Indonesian that function considerably less well than

similar organizations in Jakarta and Java, the task team has

become aware that measures to increase the capacities of

these organizations to identify and articulate their needs

and interests are a vital precondition to their involvement

in formal dialogue processes related to disability inclusion

or in programs through which they receive grants for their

administration and management. As a result, the project

is being reframed to include two distinct phases, with

the first phase involving intensive capacity building,

networking and organizational development, and

the second phase involving provision of on–grants.

Lastly, it has become increasingly clear to the project

that ensuring access for persons with disabilities

in development programming is a complex and

time–consuming process. Amongst other measures,

ensuring such access has involved the provision of sign

language interpretation services for participants who

are deaf, many of whom speak a range of different sign

languages; ensuring that print materials or power points

are available in braille, voice or other tactile means

for the blind; and ensuring that meeting premises are

accessible to participants who have physical disabilities.

Addressing these needs takes time and involves significant

resources, meaning that both the project design and its

timeframes may need to be adjusted accordingly.

PNPM facilitators, talking to a village head about the large number of people in Karangpatihan with intellectual disabilities.

DISABLED PERSONS ORGANIZATIONS (DPO) WINDOW | 129

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative)

Cumulative Progress as of Dec 31, 2013

Difference with cumulative tar-get for 20132012 2013 2014

Project Development Objective: To enhance the capacity of both the Government of Indonesia (GOI) and Dis-abled Persons Organizations (DPOs) to represent People With Disabilities (PWDs) and engage key stakeholders in promoting the inclusion of PWDs in poverty reduction programs.

Increase in # of PWDs represented by project–supported DPOs

# of PWDs and type of participants by disability

TBD TBD n/a n/a TBD n/a Pending the final-ization of project implementation arrangement.

Multi–stake-holder forum (MSF) on disability es-tablished and functioning

MSF estab-lished

0 MSF estab-lished

n/a MSF estab-lished and meeting on a regular basis

MSF meeting on a regular basis

(See next column)

Plans for MSF now adjusted in light of national con-sultations to avoid duplication with other national level fora. Indica-tor to be changed and investment to be made instead in regional DPO networks.

National level GOI has clear ‘access points’ es-tablished for PWDs/DPOs

# of GOI ministries with a spec-ified 'access point' for PWDs/DPOs

TBD TBD n/a Initial activities completed towards a 'baseline' of current status

Target Minis-tries/agencies identi-fied

(See next column)

Review of GOI data and docu-ments ongoing to compile status table. In view of changed plans regarding MSF, this indicator may be revised.

Pilot field assessment to identify existing DPOs, their activities & potential locations

Pilot field assessment completed

– Pilot field assessment completed

Pilot field assess-ment and design of base-line study com-pleted

Pilot data collected

Pilot report complet-ed

Pilot report completed

Achieved.

Baseline mapping study of ex-isting DPOs in Eastern Indonesia

Baseline study com-pleted

– Baseline study com-pleted

Design of base-line study

Base-line data collected and report drafted

Baseline report com-plete

Baseline re-port drafted

Final report will be available in early 2014.

KEY RESULTS

130 | 2013 PSF PROGRESS REPORT

Inclusion has been defined as “a sense of belonging:

feeling respected, valued for who you are; feeling a level

of supportive energy and commitment from others so

that you can do your best work.”45 In Indonesia, people

with physical and other disabilities are often excluded not

just from jobs but from a whole range of activities that

enable people to feel valued. This includes participation

in community meetings to determine collective goals

and aspirations and to decide how resources should

be allocated to achieve them. Often, the biggest block

preventing the inclusion of people with disabilities is not

a person’s disability itself, but the belief of that person and

people around him or her that they can’t participate, or

that it would take too much trouble, energy and expense

to make their participation possible.

One of the stated goals of PNPM Mandiri is to include

all members of the community in actions that

the community takes to empower its members. Despite

this goal, people with disabilities have often been left out.

Since PNPM facilitators are the program’s primary agents

for achieving changes in attitudes in the community,

Ekawati Liu, a Social Inclusion Specialist working for

the Disabled People’s Organizations Window (DPOW)

project, wanted to learn more about these facilitators’

views regarding disability and to see how interactions

with people with disabilities would change their

attitude. So, she arranged a visit for eleven facilitators

from Ponorogo and Malang to Karangpatihan, a village

near Ponorogo, often referred to as the “Kampung Idiot”

because of the high number of people with congenital

intellectual disabilities.

Ekawati Liu encouraged the facilitators to wander

the village and to meet with members of the community

with disabilities and to inspect fishponds built

by the community to provide livelihoods for these people.

Following this, the facilitators engaged in a discussion

with the newly elected village head, Eko Mulyadi, who

has been a driving force behind a fishpond building

project that has actively involved people with intellectual

disabilities. Following the discussions, the facilitators

gathered together to discuss what they had seen and

whether it had changed their ideas about people with

disabilities. They also talked whether the PNPM program

could and should make special efforts to meet the needs

of these people and, if so, what these measures should

consist of. In an interview with the PSF, Ekawati Liu

describes the purpose of the visit and the associated

activities, whether it changed the attitude of facilitators,

and the extent to which the attitudes of the facilitators

reflect those of the broader community and of policy

makers and workers in the development sector.

INCLUDING PEOPLE WITH DISABILITIES: BELIEVING IT’S POSSIBLE, BELIEVING IT’S IMPORTANT

45 Miller, Frederick A. and Katz, Judith H. 2002. The Inclusion Breakthrough: Unleashing the Real Power of Diversity. San Francisco: Berrett–Koehler Publishers

A PNPM facilitator, showing images to members of the community with intellectual disabilities in Karangpatihan, Ponorogo.

DISABLED PERSONS ORGANIZATIONS (DPO) WINDOW | 131

What was the main purpose of the activities

conducted in Ponorogo with the PNPM facilitators?

What did you hope to achieve from them? In what

way do these activities support the objectives of

the DPO project?

One of the primary goals of the DPOW project is to ensure

the inclusion of people with disabilities into mainstream

PNPM programs. Facilitators play a vital role in ensuring

participation, so we wanted to find out what facilitators

thought about people with disabilities and how they

dealt with them. We wanted to know the difficulties

they thought they might face in involving people with

disabilities. Before the Ponorogo trip, we went to Sleman

with facilitators and observed their attitues.

In Ponorogo, we did it differently. We arranged a meeting

between the facilitators and people with intellectual

disabilities in a community where they play a productive

role through a catfish breeding project supported

by a progressive village head and involving the whole

community. We wanted to gauge the facilitators’

perceptions of people with disabilities before and after

the visit to the village to see if these perceptions changed.

How well did the exercise go? Did you see any

significant changes in attitudes?

The attitudes of the facilitators in Sleman and in Ponorogo

before the visit were quite similar. Amongst other things,

they said that it was difficult to use PNPM Rural to benefit

a small number of people with special needs because

the program is meant to benefit the entire community.

Some of them said that these special needs should be

addressed by special schools or by social welfare services.

They often saw people with disabilities as the objects of

charity. They also said they just didn’t have a sufficient

level of understanding on disability issues.

EKAWATI LIU, SOCIAL INCLUSION SPECIALIST “IF YOU WANT TO ENSURE PARTICIPATION, YOU HAVE TO FACILITATE ACCESS …”

Ekawati Liu, providing disability awareness training to facilitators at a workshop in Ponorogo.

132 | 2013 PSF PROGRESS REPORT

I think the visit to the village opened the minds of

facilitators a bit. They saw how people with disabilities

were recognized as productive members of

the community, if the community made an effort to let

that happen. I think some facilitators began to understand

that communication is the key to access. They began to

get that if people with disabilities can’t communicate

their needs, you don’t have the basis for participation.

One facilitator began to talk more about the difficulties

of making communication happen than more the lack of

ability. So, there was some change in attitude. I’m just not

sure if that will have an impact on the manner in which

the facilitators actually implement their duties in the field,

given the current program guidelines, the workloads

of the facilitators, the attitudes of the community, and

the attitudes of people with disabilities themselves.

So, do you think making disability issues a part of

the training curriculum for facilitators would address

this? Or do you need special facilitators, whose main

duties relate to disability issues?

I think it needs both. We’re working with the Generasi

program to pilot disability inclusion training. We are

working with InSpirit to train 12 people with disabilities

so that they can train Generasi facilitators. We hope that

these trainers can act as resource persons to provide input

on approaches to access and participation. But this is

the first time we’ve tried this kind of training. The trainers

don’t have much experience or background, so we’re

keeping expectations low. But if the pilot proves to be

promising, we want to scale it up.

How would you address the criticism that the PNPM

program is indeed intended to benefit the entire

community, and not just specific groups within

a community?

People with disabilities are part of the general community!

They are only isolated because of a lack of a commitment

to include them. When people see someone with

a missing arm, that’s the first and often the last thing

they see. They see the disability, and not the person.

But disability isn’t an objective fact; it’s a socially created

problem. When you address the problems that prevent

people from being included, you can’t call them

‘disabled’ any more. To include people with disabilities,

the community has to make some adjustments so that

they can participate and be productive. That’s the basic

idea of “universal access”. The idea is not to design special

facilities or programs that help people with disabilities, but

to make all facilities usable by everyone who needs them

and has a right to them. The PNPM program is meant to

be about inclusion. There is no such thing as inclusion

without access, so you have to work on access first. To

ensure access, you need different facilities and approaches

so that all people can participate, not just most people or

some people.

But the level of resources that might be required

to achieve this is an issue. How would you respond

if people say that the Indonesian government

can’t afford to provide special facilities to ensure

the inclusion of a relatively small number of people?

When people say they can’t afford it, they mean they can’t

be bothered by it. They mean it’s not a priority. If the goal

of the PNPM program is inclusion, it doesn’t make sense to

say that it’s too expensive or too much trouble. You might

just as well say that it’s too much work to include women

and takes extra time and resources. That’s the attitude we

often face. As a deaf person, I’ve experienced it personally

in the workplace, even within an institution that is meant

to be at the cutting edge of facilitating inclusion. For

meetings and presentations to be accessible to a deaf

person, special facilities are required. When I’ve asked

A member of the community feeding fish at a community livelihoods project that involves a large number of people with intellectual disabilities in Karangpatihan, Ponorogo.

DISABLED PERSONS ORGANIZATIONS (DPO) WINDOW | 133

for these facilities to be provided, I’ve sometimes been

told that we’ll have to provide them ourselves and pay

for them out of the DPOW project budget. If they can’t

make a presentation or meeting accessible, I boycott it.

They are saying that the onus is on people with disabilities

to facilitate their own access to meetings! How well

do you think that approach is going to work if you tell

people with disabilities in the villages that if they want

to participate in a meeting, they have to pay to make

it happen! And these are people who often are already

struggling with the idea that they even have a right to

participate! Forget it! Access is a vital prerequisite to

participation. If you want to ensure participation, you have

to facilitate access.

Can you think of examples of countries at a similar

level of economic development that have a better

record in terms of facilitating access and therefore

ensuring the participation of people with

special needs?

As I said, it’s not a matter of whether the resources are

available but is a matter of whether it’s made a priority.

I haven’t done a formal comparison or evaluation of

the record in other countries, but I’m pretty impressed

with Ecuador’s “Ecuador without Barriers” program. It

involved a national–level study of the special needs of

people with disabilities, followed by proactive measures to

meet these needs, including measures mandating physical

access to buildings, access to employment opportunities,

and access to health and educational services. This

program shows that inclusion can be achieved

by countries at all levels of economic development.

It’s not a luxury that only rich, developed nations can

indulge in.

So far, you’ve talked about the DPOW project’s

approach to mainstreaming disability issues into

regular PNPM activities and programs. Are you

saying that there isn’t a need for specific projects and

activities to meet the special needs of people with

disabilities? That these needs should be addressed

through regular programs?

To be honest, at this point, I think we need both. Yes,

we need to step up efforts to facilitate the inclusion of

people with disabilities into regular programs. That’s vital

so they can be part of the community. But there is also

a need for special programs and activities. People with

disabilities often can’t access programs due to their lack

of networks, their lack of information, their lack of ability

to access services, and even their belief that they don’t

have the right to demand access to these services. People

with disabilities have been isolated for so long that there

is a need for special activities so that they can overcome

these issues. These people have often internalized

the attitudes of those around them. If they are asked

what they need, they often tell people what they think

others want to hear, which reinforces their own exclusion.

Special programs and activities are needed to address

that. So, the DPOW project is not just about changing

the attitudes of facilitators, or even about changing

community attitudes. It’s about changing the attitudes

of the people with disabilities themselves. But the DPOW

program can’t change these attitudes by itself. It provides

the tools and resources to people with disabilities and

to their organizations so that they can change these

attitudes. And it starts with them changing their attitudes

towards themselves. Part of that process is building their

capacities to be productive and independent. Another

part is creating forums so that these people can let

the community know what they need to be included. And

yet another part is making sure that the community can

meet those needs and makes doing that a priority.

Finally, a personal question. You are deaf. What

advantages does that give you in terms of the job

you do, if any? How do facilitators and others

you’ve visited in the field respond to the fact that

you’re deaf?

It helps me to gauge the attitudes of people towards

disability directly. I can get a sense of how they will

behave when they deal with other people with disabilities.

I notice when people talk to the people around me,

instead of me, because they don’t know how to deal

with me. But I’m loud and I’m brassy, so I confront them

directly and demand to know why they don’t address their

questions to me. Once they’ve got over that, they often

want to know how I deal with prejudice as a deaf person.

So it’s usually a two–way conversation, an exchange. We

both learn from it.

PNPM Peduli reaches the marginalized people in 25 provinces. One of the beneficiary is Kajang Tribe in South Sulawesi.

The PSF’s analytical work supports the formulation

and implementation of the Government’s Roadmap

and the newly approved Village Law, among many

commitments, maximizing the impacts of community–led

development at the local level by linking operational

experience and local–learning with applied research

and evaluation, all in the service of a knowledge base

of best–practice solutions for effective community–led

programs in Indonesia.

In 2013, the PSF’s Analytics team completed all

the planned fieldwork and data analysis of ongoing

studies except for the Incidence of Benefit Survey,

which was deemed to be more useful if integrated with

the broader impact analysis of PNPM Rural than being

published as a standalone report. Most completed

studies were presented to the Government and

other stakeholders, two of which directly supported

the Roadmap Pillars (Integration of Community–based

Poverty Reduction Programs at Community Level) while

the results of the Local Level Institutions III (LLI3) study

were used as inputs for the drafting of the recently

approved Village Law.

Studies and field supervision have consistently identified

Revolving Loan Funds (RLFs) as one of the key

areas of risk and opportunities for PNPM. Results of

the assessments conducted in 2011 by the RLF Pilot and

a possible strategy for going forward were discussed

with PNPM stakeholders, leading to a number of policy

decisions. Economic empowerment for communities

is recognized as a priority by the Government, and

government stakeholders reached a consensus in

2013 to move the pilot project to full implementation in

46 sub–districts of the eight districts in the four provinces.

At the same time, the fiduciary controls and accountability

mechanisms for RLFs need to be strengthened to mitigate

the growing fiduciary risks posed by RLF operations.

In 2013, the review of the legal ownership status of

RLF assets was completed with recommendations of

options for possible legal structures that can strengthen

the operation and sustainability of RLFs.

In 2013, the PSF continued to provide policy and

operational input to the Government and civil society

organizations particularly on the newly approved Village

Law as well as the PNPM Roadmap. The Village Law draws

heavily on the evaluations of PNPM that have shown that

communities are capable of planning, implementing and

supervising a range of village–level development projects,

and the project team provided analytical support and

technical assistance to the drafting of the law. The Local

Governance Capacity Building (LGCD) Project was on

the forefront of the efforts to mainstream PNPM practices

of good governance into local government practices.

Although the project was closed in June 2013, its activities

will be incorporated into other priority projects at the PSF

that focus on social accountability, frontline services

and village governance. Specifically, technical assistance

has been provided to the Ministry for Development

of Disadvantaged Regions (KPDT) to help fulfill its

coordination role in disadvantaged areas.

In addition, PNPM Roadmap mandates improvements

to village level governance through the provision of

community legal education and with the measures

to improve access to independent legal advice. It

is ever more critical with the increasing corruption

cases and a potential risk inflicted by the Village Law

that grants increased autonomy and a higher level of

financial resources. In this regard, the Joint Management

Committee approved the work to provide communities

with better access to legal support and to increase

their capacity to deal with large corruption cases.

In 2014, the management of the work will move to

the Australian–Indonesian Partnership for Justice (AIPJ ).

WINDOW FOURM&E AND SPECIAL STUDIES

2008 2009 2010 2011 2012 2013

2722

16

94

1

46

35

29

22

139

Approved CommitmentsDisbursements

Figure 21. Funds committed and disbursed under Window Four, 2008–2013 (US$ million)

136 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWThe PNPM Mandiri programs and their predecessors have

benefited significantly from rigorous analytical works

that have influenced the development of the Indonesian

Government’s policies on community–based poverty

reduction programs and served as inputs to improve

the design and operations of these programs. The PSF

analytic program consists of three main components:

(i) monitoring and evaluation (M&E) activities to provide

stakeholders with empirical data regarding the results

and impacts of PNPM Mandiri; (ii) in–depth research on

topics of particular concern to PNPM and to the social

development field in Indonesia; and (iii) capacity building

of Indonesian social science research organizations and

government agencies to conduct M&E and special studies.

The first phase of the PSF analytic program was completed

in 2012 and funding for a top–up proposal was approved

by the JMC in July 2013. Under the top–up proposal,

the analytic program is guided by the PSF’s current five

action–oriented pillars to inform operational and analytic

activities: (i) continued poverty impact; (ii) improved

accountability in service delivery; (iii) social justice and

inclusion; (iv) conflict and fragility; and (v) supportive

enabling environment for empirically based policymaking.

The program addresses these issues by using mixed

method research techniques including experiments, social

network analysis, simulations and ethnographic work.

PROGRESS IN 2013All the field work and data analysis of ongoing studies in

2013 was completed as planned, except for the Incidence

of Benefit Survey. See Annex Three for the list of studies

completed in 2013. Most completed studies were

presented to the Government and other stakeholders.

Two of the studies directly supported the Roadmap Pillars

(Integration of Community–based Poverty Reduction

Programs at Community Level) and have been presented

and discussed with the relevant working groups, who

have incorporated a number of the recommendations

of the studies into their work plans. The Local Level

Institutions III (LLI3) study was also presented to

government stakeholders and its results have been

used as inputs for the drafting of the recently approved

Village Law.

The Papua analytical work consists of several analytic

pieces related to PNPM RESPEK and conflict issues in

Papua. It is nearing its completion, with a final report

being prepared for the qualitative component of this

work (Papua Beneficiary Assessment). Analysis of data

from the last round of data collection, conducted in

December 2013 following the schedule of the National

Socioeconomic Survey (SUSENAS), is ongoing. Reports

from both components are expected to be finalized in

the first quarter of 2014.

Summary Information

Status Task Team Leaders Implementing Agency

Active Caroline Mary Sage (csage@worldbank.org)

PSF/World Bank

Start Date to Closing Date

26 May 2008 to 31 December 2017

Geographic Coverage Approved Budget

National US$ 14,411,000

WINDOW FOUR

PNPM MONITORING AND EVALUATION

PNPM MONITORING AND EVALUATION | 137

Table 6. Planned Evaluations and Studies for 2014 and 2015

No Name of Study Description of Study MethodologyExpected Timeline

1 PNPM Rural Economic Impact Simulation

This exercise will demonstrate the shape and size of the benefits PNPM brings to the Indonesian economy and rural livelihoods. It will compare the “PNPM way” of addressing local infrastructure and productive capital needs to a simulation of the next–best alternative for addressing those same needs. By cataloguing the local productivity gains, contributions to local economies and livelihoods, and cost savings for the central government, the Economic Impact Simulation will be a comprehensive summary of the measurable financial advantages of PNPM principles and an identification of the most effective parts of the PNPM process/delivery mechanism in supporting local economic gains.

Quantitative Concept note completed; field work Q2 2014; first draft report Q4 2014

2 “Sentinel” Villages The aim of the Sentinel Villages project is to better understand the changing nature of community experience and satisfaction with, as well as desires for, the PNPM program and community members’ participation in the program. Understanding the way these experiences evolve will in turn lead (in real time) to suggestions for changes in program implementation. The methodology will combine repeated qualitative work and analysis over a number of years with a quantitative analysis based on those same longitudinal qualitative records.

Mixed methods Concept Note completed; field work Q2 2014; first draft report Q4 2014

3 Revolving Loan Fund (RLF) Tracking Exercise

This tracking exercise is seen as the first building block in the construction of an RLF–centered evidence base and as a complement to the ongoing RLF pilot exercise (and associated evaluation). The evidence gathered can provide preliminary policy direction as well as provide impetus for the next round of analytical and research activities focused on the RLF initiative.

Quantitative Concept Note Q1 2014; field work Q3 2014; first draft report Q1 2015

4 PNPM Generasi Evaluation

Generasi will continue its rigorous evaluation to see program’s impact — especially in longer term. The evaluation plan to conduct another round of panel survey following the end line survey of the previous impact evaluation and to complete the survey with qualitative analysis to understand why and how the program achieves its impact.

Mixed methods Feasibility Study Q1 2014

5 Accountability/Governance Initiative

Building on the Local Level Institutions and other studies, this initiative will focus on what enables or constrains PNPM good governance practices to be taken up more widely within the community or local government or administration.

Quantitative Concept note completed; field work Q2 2014; first draft report Q4 2014

6 PEKKA Evaluation Following the baseline study in 2011, this evaluation will look at PEKKA’s performance and try to better understand how PEKKA reduced the marginalized aspect — limited access and control over resources and policies — of the Female headed households and achieve their objectives.

Mixed methods Field work preparation completed; field work Q2 2014; first draft report Q4 2014

138 | 2013 PSF PROGRESS REPORT

For the Incidence of Benefits Survey, the original plan

was to analyze the data and publish it as a standalone

report discussing who actually benefits from PNPM and

how communities perceive PNPM regarding its uses and

its capacity to target the poor and vulnerable. However,

the preliminary data analysis showed that the results from

the survey would be more useful if incorporated as part

of the program evaluation for the PNPM Rural. Hence,

the data analysis from this survey will continue in 2014.

FUTURE PLANSIn the period from 2014 to 2015, the analytic program

will focus on completing ongoing studies from 2013 and

on implementing several key evaluations and studies

approved in the latest top–up proposal. These studies

and evaluations have been prioritized due to their

importance as inputs for: (i) ongoing PNPM projects,

including PNPM Rural and PNPM Generasi; (ii) PNPM

Roadmap; (iii) drafting implementing regulations under

the Village Law; (iv) developing future accountability and

service delivery initiatives in Indonesia, such as Sentinel

Villages; and (v) evaluating innovative ongoing projects,

such as the PEKKA. The list of new or planned studies and

evaluations can be seen in Table 6.

The program will also continue to provide advice and

quality control across the operational portfolio, and works

on a just–in–time basis to address new emerging issues, as

requested by government partners.

In addition to the evaluations and studies, the program

will support the establishment of a technical working

group chaired by Bappenas, the aim of which is to

facilitate more efficient integration and streamlining

of policy priorities with an analytical focus and more

effective dissemination of empirical findings. In addition,

the PSF will launch two major capacity building programs,

as follows:

Statistic Indonesia (Badan Pusat Statistik, BPS)

SUSENAS Consumption Module Simulation: The

project team will support BPS in its endeavors to

strengthen the consumption module of their annual

SUSENAS. The PSF will bring expertise from the World Bank

Development Economics Research Group (DERG), which

will offer BPS a range of possible consumption modules

and will assist BPS to test out which module is best suited

for BPS/Indonesia’s purposes.

Strengthening Social Development Research Capacity

of Universities in Indonesia: The PSF has frequently

encountered challenges in finding qualified Indonesian

social research organizations to conduct evaluations

and studies, especially for the qualitative methodology.

A capacity building project will be developed with

an aim to strengthen the capacity of universities in

Indonesia to undertake social development research

using mixed–methods, but with an emphasis on

qualitative methodology.

LESSONS LEARNEDBuilding and maintaining strong partnerships with

various research organizations in Indonesia help to

improve the quality of evaluations/studies conducted

by the PSF and to strengthen the capacity of research

partners. The PSF will work to put in place a more effective

mechanism to work with government partners such as

the establishment of the above mentioned PSF analytical

technical working group chaired by Bappenas.

PNPM MONITORING AND EVALUATION | 139

Result Indicators

Unit of Measure

Base line

Total Target

Targets (cumulative)

Cumu-lative Progress as of Dec 31, 2013

Differ-ence with cumulative target for 20132011 2012 2013 2014 2015

Project Development Objective: To provide stakeholders with empirical data regarding the results and impact of PNPM Mandiri; research in greater depth special topics of concern to PNPM and the social development field in Indonesia; and enhance the ability of Indonesian social science research organizations to conduct M&E and special studies.

Findings/ev-idence from 2010–2011 round of evaluations reviewed as part of PNPM Road-map process

n/a n/a 11 eval-uations dissem-inated to PNPM stake-holders

n/a 9 eval-uations dissem-inated to PNPM Stake-holders

11 eval-uations dissem-inated to PNPM stake-holders

n/a n/a 10 evalua-tions dis-seminated to PNPM stakehold-ers

–1 (The Incidence of Bene-fit Survey data will be incorporat-ed into the upcoming PNPM Rural Program Evaluation.)

Findings/ev-idence from additional evaluations launched in 2012 reviewed as part of PNPM Road-map process

n/a n/a 7 addi-tional evalu-ations dissem-inated to PNPM stake-holders

n/a n/a 6 eval-uations dissem-inated to PNPM stake-holders

7 eval-uations dissem-inated to PNPM stake-holders

n/a 5 evalua-tions dis-seminated to PNPM Stakehold-ers

–1 (The Papua Qualitative Beneficiary Assessment dissemina-tion is post-poned to 2014 to co-incide with a planned donor con-ference in Jayapura in Q1 2014.)

Revised Re-sults Frame-work (RF) and associat-ed program of evalu-ation for PNPM Rural 2012–2015

n/a n/a RF complet-ed and endorsed by PMD; strategy for PNPM 2012–2015 eval-uation finalized

n/a RF com-pleted and en-dorsed by PMD; concept/strate-gy for PNPM V evalu-ation finalized

Concept notes for evalu-ations com-pleted; field works started

Evalu-ations com-pleted; results shared with stake-holders

Re-ports en-dorsed by GOI and pub-lished

RF complet-ed and endorsed by PMD; concept/strategy for PNPM V eval-uation finalized, concept notes for evalua-tions com-pleted

Field works for eval-uations have been postponed to 2014 pending the approval of top–up proposal by JMC.

# of studies launched as part of the 2012 round of evalua-tions

# of studies launched

0 7 n/a 5 7 n/a n/a 7 2 studies delivered in 2013.

New 2013 studies launched (Rural Impact Sim-ulation; Sen-tinel Villages; Governance and Ac-countability project)

# of studies launched

0 3 n/a n/a 3 n/a n/a 0 –3 (Concept notes for all 3 studies complet-ed but field works postponed to 2014 due to delays in approval of top–up proposal.)

KEY RESULTS

140 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWThe Government has embarked on a radical and rapid

decentralization program, involving the devolution

of much of the responsibility for the delivery of

public services to the local level. As a result of this

devolution, local governments now manage around

half of the spending on basic public services. The

process of decentralization creates opportunities to

increase the efficiency of spending and the level of

participation in decision making by local constituents.

In this way, it is anticipated that local planning and

service delivery can better reflect the priorities of these

constituents and enable them to exercise oversight in

the delivery process, thereby contributing to improved

accountability. While there have been some gains from

decentralization in terms of regional accountability and

efficiency, the transition towards decentralization remains

incomplete, as there is a considerable variation across

regions in terms of the capacity of district governments to

provide equitable and accessible services and the ability

of poor people and communities to engage with

processes of district–level governance.

For the sustainability of PNPM, it is critical to link

community–driven development (CDD) processes to

broader reforms and capacity development across

the local governments. Although it is beyond a CDD

program’s remit to strengthen the planning and

budgeting processes at the local government level or

to enhance high–level sector coordination, there are

a number of areas where improved linkages between

communities and district governments can inform

these processes. For example, CDD programs may

elucidate and refine the means by which social capital

and community–driven mechanisms for downward

accountability can be mobilized for effective and inclusive

planning and budgeting; and contribute to creating

stronger incentives for local government accountability

through experiments with the mechanisms of rewarding

local performance.

The Local Governance Capacity Development

(LGCD) project was launched in 2010 to improve

pro–poor planning and service delivery and to promote

demand–side approaches by fostering local government

responsiveness to community demands. The project

aimed to improve the participatory planning process

from communities up to the district level, building

better linkages between the community planning in

PNPM and line agencies’ service delivery. The project

worked toward its development objective by focusing on

analytical studies based on lessons learned from various

CDD programs and by piloting a toolkit for pro–poor

planning, budgeting and monitoring (P3BM). These

studies illuminated the extent of the capacities of local

government officials in key competency areas, the link

between community needs and planning processes,

the barriers and impediments to local governments’

delivery of good–quality public services to communities,

and the interaction between PNPM with regular

development planning.

Summary Information

Status Task Team Leaders Implementing Agency

Closed Hans Antlov (hantlov@worldbank.org)

PSF/World Bank

Start Date to Closing Date

18 October 2010 to 30 June 2013

Geographic Coverage Approved Budget

Stock–taking and analytical studies conducted in 25 districts P3BM training for officials from 9 provinces and 30 districts

US$ 1,430,000

WINDOW FOUR

LOCAL GOVERNANCE CAPACITY DEVELOPMENT (LGCD)

LOCAL GOVERNANCE CAPACITY DEVELOPMENT (LGCD) | 141

46 (i) Stocktaking study of development planning, downwards accountability and local government capacity; (ii) Lessons learned study of SPADA development planning; (iii) Lessons learned study of Participatory Planning System Development Program (Program Pengintegrasian Sistem Perencanaan Partisipatif, P2SPP); and (iv) P3BM Impact Assessment (http://pnpm–support.org/lg–analytical–study).

47 On (i) the use of social accountability tools to improve service delivery; (ii) how demand–side governance could be used to make planning more pro–poor; and (iii) support for empowered and inclusive communities and village governments as prerequisites for demand–side governance.

The project published four studies on the lessons

learned from CDD interventions46 and three draft policy

notes47 were compiled into a single report on ‘Improving

Public Services and Local Government Responsiveness

through Accountability and Community Engagement’ and

used as an input into a paper on ‘Village and Sub–district

Functions in Decentralized Indonesia’. These reports,

which formulate a set of policy recommendations on how

local government service delivery can be made more

responsive and accountable, have served as a foundation

for the work related to improving frontline service delivery

and implementing the new Village Law.

PROGRESS IN 2013During 2013, the LGCD team continued to provide policy

and operational input to the Government and civil society

organizations on the Village Law and the PNPM Roadmap,

particularly on the issues related to PNPM’s integration

with local governments and their agencies. The LGCD

project contributed to moving the agenda defined

by the PNPM Roadmap forward by leveraging the demand

created by PNPM for improved service delivery outside

the program, holding the Government accountable

for how they use public funds and encouraging local

governments to increase their contributions to poverty

alleviation and community development. Advice provided

on the PNPM Roadmap and the Village Law includes

how transparency and accountability practices that are

TNP2K and PNPM Mandiri Oversight Working Group held a Community Empowerment Workshop to support PNPM Roadmap and the Village Law

142 | 2013 PSF PROGRESS REPORT

aligned with PNPM principles can help improve service

delivery; what may be needed across local government

technical agencies to scale up such practices under PNPM

as a community platform for responsive service delivery;

and what may be an appropriate design of governance

arrangements related to the Village Law.

Although the LGCD project was closed in June 2013, its

activities will be incorporated into other priority projects

at the PSF that focus on social accountability, frontline

services and village governance. The Local Governance

Team will also continue to provide policy advice on

the development of implementing regulations to support

the Village Law, as well as the PNPM Roadmap, based on

the results from the various projects under its portfolio.

LESSONS LEARNEDThe main lesson of the project is that policy work needs to

be advised by operations. The LGCD project and the PSF

more broadly were strategically positioned to provide

policy advice on the drafting of the Village Law. Strong

analytical results and lessons learned from the LGCD

reports and the PSF’s Analytics team, and practical

operational achievements through PNPM Rural and

PNPM Generasi provided direct inputs for the drafting of

the Village Law. The 15–year experiences with Kecamatan

Development Project (KDP) and PNPM endowed the PSF

with legitimacy and trust in providing policy advice

to the Village Law drafting committee, which in turn

underlines the importance of a long–term engagement

with the program and its stakeholders.

TNP2K and PNPM Mandiri Oversigh Working Group held a Community Empowerment Workshop to support PNPM Roadmap and the Village Law

LOCAL GOVERNANCE CAPACITY DEVELOPMENT (LGCD) | 143

Result IndicatorsUnit of Measure Baseline

Total Target

Targets (cumulative) Cumulative Progress as of Dec 31, 2013

Difference with cumulative target for 2013

Before 2011 2011 2012 2013

Project Development Objective: To improve pro–poor planning and service delivery and pilot social accountability approaches to foster local government responsiveness to community demand.

# of policy notes prepared

#of notes 0 4 0 3 4 5 7 2 (Including the Village Law.)

# of provinces that establish P3BM clinics

# of clinic established

0 2 0 2 2 n/a 2 2013–2014 targets are reported by the P3BM project.

# of districts that use P3BM tool to monitor poverty data

# of districts 0 5 2 5 5 n/a 11 6 (2013–2104 targets are reported by the P3BM project.)

# of studies on lessons learned from various CDD programs completed to support roll–out of good practices

# of studies 0 3 0 3 3 n/a 4 1

# of participants in discussion of policy relevant findings

# of participants

0 750 100 750 750 n/a 710 –40

# of master national and provincial master trainers

#of trainees 0 125 25 125 125 n/a 152 27 (2013–2104 targets are reported by the P3BM project.)

# of local government officials trained in P3BM toolkit

#of trainees 0 100 50 100 100 n/a 420 320 (2013–2104 targets are reported by the P3BM project.)

KEY RESULTS

144 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWSince the inception of PNPM Mandiri and its predecessor

programs, communities have been choosing to use

a portion of program grants to finance the development

of small scale productive activities through revolving

loan funds (RLFs). The total asset value of PNPM RLFs

has now grown to more than US$1 billion, with over

500,000 savings and loans groups and over 5 million

individual borrowers. Within the broader picture of

the Government’s overall national poverty reduction

strategy, PNPM RLFs serve as a bridge between Cluster

2 (community level development and empowerment)

and Cluster 3 (small and medium enterprises, and

micro–finance). However, with uncertainties regarding

the future of the PMPM program, there is a possibility

that direct government support for the RLFs may be

phased out under future administrations. In addition,

a number of studies and evaluations have shown that RLFs

have had mixed performance, with a high proportion of

non–performing loans.

To address the issue of poor performance while

at the same time ensuring the sustainability of their

impact, the Government requested support for a pilot

program aiming to improve PNPM RLFS operations.

Specifically, the Government has asked the PSF to help

design and test strategies in line with global microcredit

best practices to improve RLF performance and to support

the continued provision of financing for entrepreneurs in

poor communities without direct government support.

Accordingly, the Joint Management Committee (JMC)

approved the PNPM Mandiri RLFS Capacity Building

and Sustainability Project in January2010, to test and

pilot activities that could be replicated and expanded

by the Government. The PNPM RLF project provides

technical and strategic advice for the further development

of the overall PNPM RLF.

The project, supports the Government by: (i) building and

enhancing the structure and operations of the PNPM RLF

scheme; (ii) strengthening linkages between the PNPM

RLFs and bank and non–bank financial institutions to

help ensure growth and sustainability in the provision of

financial services to the poor; (iii) developing a monitoring

and supervision system to provide fiduciary oversight of

the microfinance operations and to track the institutional

development and performance of RLFs; and (iv) facilitating

the evolution of RLFs from a government–backed

scheme to become more operationally and financially

self–reliant. The project also supports Pillar 3 of

the Government’s PNPM Roadmap (strengthening of

community institutions), which aims to establish legal

frameworks for community institutions, including

options for providing a strong legal basis for RLFs and

developing a framework to ensure their sustainability

and accountability.

The project also conducts studies, assessments and legal

reviews and provides strategic input for the ongoing

development of the overall PNPM RLF scheme.

Independent assessments of RLF operations and of their

management systems and financial performance served as

instrumental inputs for all of the activities. These reviews

indicate significant weaknesses in terms of declining levels

of loan repayments; a widespread perception that loans

Summary Information

Status Task Team Leaders Implementing Agency

Active Safriza Sofyan (ssofyan@worldbank.org)

World Bank

Start Date to Closing Date

15 January 2010 to 31 December 2014

Geographic Coverage Approved Budget

Special Region of Yogyakarta, Central Java, East Nusa Tenggara (NTT ) and West Sumatra

US$ 8,890,866

WINDOW FOUR

PNPM MANDIRI REVOLVING LOAN FUNDS CAPACITY BUILDING AND SUSTAINABILITY PROJECT (PNPM RLF)

PNPM MANDIRI REVOLVING LOAN FUNDS CAPACITY BUILDING AND SUSTAINABILITY PROJECT (PNPM RLF) | 145

are government grants that do not need to be repaid;

unclear legal status of the funds; and weak management

capacity. Linkages with, and funding from, formal bank

and non–bank financial institutions are considered to

be an important factor in ensuring the sustainability of

the RLFs if and when direct government funding ends.

The project’s mapping of the existing linkages between

4,000 RLFs and financial institutions show that few

linkages exist to facilitate the provision of savings or

credit services.

PROGRESS IN 2013After a long delay, the Government’s RLFs technical

working group (TWG) was formally instituted in

mid–2013, with the appointment of government

counterparts for each major component of the project.

Through extensive consultations and regular updates,

the project team supported to the TWG, which

provides a forum for the resolution of bottlenecks

and for ensuring the alignment of pilot activities with

government priorities.

A legal review to strengthen the legal basis for the RLF

sustainability into the future was completed. As a result

of the review, which was discussed with national and

regional stakeholders, Government is considering whether

the RLF should become: (i) a limited liability companies;

(ii) savings and loan cooperatives; or (iii) legal associations.

Step–by–step handbooks for proposed legal structures

were prepared in 2013, and preliminary outlines for

implementation and technical guidelines in the PNPM

context were developed.

UPK staff checking the loan repayment from group borrowers. Demak, Central Java

146 | 2013 PSF PROGRESS REPORT

A mapping exercise of 3,614 RLFs was carried out to

determine the types of linkages that currently existing

with banking and non–banking financial institutions.

The findings from this exercise were discussed with

stakeholders and a final report issued in July 2013. The

report, includes case studies of good practices for linkages

with bank and non–bank financial institutions, is serving as

input for the development of strategies to link RLFs with

financial institutions. The project is continuing to work

with stakeholders to develop linkage strategies and to

support the testing of linkage options.

During the year, a prototype web–based RLFS MIS

was developed and tested among users to ensure

the transparency and integrity of data for PNPM Rural.

Data from each of the test sites is being collected, cleaned

and put into the system after recent tests in Yogyakarta.

The prototype, which will be linked to the overall PNPM

MIS, has received enthusiastic responses from stakeholders

for its ease of use, transparency and ability to access

reports at any level, although subject to security protocols.

It was also agreed that the project would provide advice

to PNPM Urban to improve its existing web–based system

for RLFs. A simple tool to measure the health of RLFs was

developed and, when the prototype MIS is rolled out

by the Government, assessment data will be generated

automatically to facilitate more efficient targeting for

the supervision and management of the RLFs. Lastly, initial

questionnaires to assess the impact of project activities

and to serve as input for government decision–making

related to the rollout of the activities, were tested and

adjusted for local conditions.

FUTURE PLANSDuring the final year of the project, all planned project

components and activities will be rolled out in all RLF pilot

locations including the expansion of capacity building

RLF borrower’s kiosk. Loan to start up her business came from PNPM Mandiri RLFs. Foto taken from: Kupang, NTT

PNPM MANDIRI REVOLVING LOAN FUNDS CAPACITY BUILDING AND SUSTAINABILITY PROJECT (PNPM RLF) | 147

and linkage activities in 10 PNPM Urban locations. A

series of surveys will be conducted as part of the impact

assessment planned for 2014.

Stakeholders have requested that the project team

carry out additional work to support the rollout

and the Government’s conversion of selected RLFs

to the chosen legal form. New legal forms require

additional skills and approaches to financial reporting

and RLFS operations and potential linkages to financial

institutions, as well as adjustments to the MIS, which has

been designed to facilitate these anticipated changes.

The project expects that the second phase of capacity

building will support the new legal forms, strengthen

RLFs’ ability to develop and deliver new products/services,

and manage loans and provide additional services

to borrowers.

The project will work closely with government

stakeholders to facilitate the strategic discussion on

the Government’s capacity building, MIS and linkage

activities to non–pilot locations when the project is

scaled up nationwide. The activities are prioritized in close

collaboration with PNPM stakeholders to improve RLFS

operations toward achieving sustainability when direct

government funding is phased out.

LESSONS LEARNEDIt is important to have a structure and processes for

stakeholder consultations established and working

from the beginning of the project. Although a formal

structure for stakeholder consultations was part of

the project design and some working group meetings

and stakeholder workshops did take place to disseminate

results of assessments and updates on progress,

the structure was not really effective until mid–2013, well

into the project’s cycle. The project might have benefited

from the inputs provided by important stakeholders,

had this framework been in place at an earlier stage.

Similarly, efforts could have been made to engage in more

frequent communications with stakeholders outside of

working group meetings as a means of ensuring that all

stakeholders had the necessary information to understand

the project and to raise questions and concerns at an

earlier stage of its implementation. To address these

issues, a new communications strategy and master

plan for implementation were developed in 2013, with

meetings of the TWG now involving a much higher level

of participation on the part of relevant ministries and

technical departments.

The project was designed to strengthen the operations of

the UPKs and others involved in RLFS policy or the process

of deciding or managing the RLFs. However, it was not

designed to improve the capacity of borrower groups

to develop and grow their small businesses, which will

eventually impact groups’ ability to repay their loans. In

turn, this has a significant impact on the sustainability

and viability of RLFs. Thus, the lesson learned is that to

test and implement these reforms, both supply–side

and demand–side issues and constraints must be

addressed in tandem. Recently, Bappenas has agreed

to pilot a sustainable livelihoods program that focuses

on the building of capacities at the group level to

complement the RLFS pilot activities.

148 | 2013 PSF PROGRESS REPORT

Result Indicators

Unit of Measure Baseline

Total Target

Targets (cumulative) Cumulative Prog-ress as of Dec 31, 2013

Difference with cumulative tar-get for 20132011 2012 2013 2014

Project Development Objective: To support the capacity building, restructuring and institutionalization of the PNPM Revolving Loan Fund scheme and to strengthen linkages between the PNPM RLFs and the commercial microfinance sector so as to help ensure growth and sustainability in the provision of financial services to the poor.

Percent increase in # and amount of loans to groups/members in support-ed RLFs.

Loans To be extract-ed from baseline data

Targets to be set in col-labora-tion with PNPM.

– – – TBD Baseline data collected. All pilot activities (legal, capacity building, MIS, bank linkages) that will improve RLF operations now underway.

PDO results are not expected to be realized after activities are complete and measurable. Targets to be set in collaboration with PNPM.

# UPK–RLFs with increased non–gov-ernment financial resources.

UPK–RLFs 0 (all funded from PNPM Block Grants and reflows)

– – – Legal review complet-ed and report issued.

– Mapping of existing linkages and good practic-es completed to find that less than 15% of all 3,614 RLFs had existing linkages, but none accessed finan-cial institutions. Review and rec-ommendations to support strength-ening legal status completed.

PDO results are not expected to be realized until activities are complete and measurable. Legal status and RLF performance will impact the ability of RLFs to link with formal financial institu-tions.

– – Final report on linkages discussed with stakehold-ers and report issued.

–

# of UPKs with completed sustainabil-ity assess-ments

Assess–ments

0 507 507 – – – 508 assessments completed in 2011 and discussed and disseminated in 2012. Assessments found significant weaknesses in RLF system, informing stakeholder con-sultations and pilot activities.

Independent assessments are the foundation of all pilot activities. Start of pilot activities was de-layed due to the addition of PNPM Urban locations and additional work needed to finalize the report.

% of supported RLFs with regular, complete and timely perfor-mance rating results

% UPK–RLFs

0 100% – – – 100% Simplified mea-surement system designed and tested. Prototype RLF management information system (MIS) designed and will support auto-mated generation of performance reports. MIS tested among PNPM users at national, regional and local (UPK staff, BP UPK and BKAD) levels.

Note: PNPM Rural simplified from 60 to 17 pro-posed indicators; reduced further after stakeholder consultations.

KEY RESULTS

TECHNICAL ASSISTANCE TO THE STATE MINISTRY OF DISADVANTAGED AREAS (KPDT) | 149

PROJECT RATIONALE AND OVERVIEWThe core mandate of the State Ministry of Disadvantaged

Areas (KPDT ) is to support disadvantaged, border, remote

and post–conflict areas in Indonesia48, with this being

one of eleven national priorities outlined in the Five–Year

Development Plan (2009–2014). By closing the gap

in living standards between disadvantaged areas and

the rest of the country, KPDT aims to contribute to

Indonesia’s territorial cohesion, a particularly sensitive

objective given the archipelagic nature of the country.

KPDT achieves this by improving inter–ministerial program

coordination and synchronization and by monitoring

the delivery of government programs in disadvantaged

areas. Its sectoral mandate has recently been expanded

to include the coordination of investments in food

security, infrastructure, education, and health care. KPDT’s

basic strategy involves building the capacities of district

government agencies in disadvantaged areas; supporting

integrated area development planning; promoting

priority local value chains; and investing in critical

rural infrastructure. In past years, KPDT has developed

a number of key programs and projects with the support

of the World Bank, among which the Support Program for

Disadvantaged Areas Project (SPADA) being the largest

one, operating in 51 districts across 10 provinces. This

was complemented by the Aceh–Nias Livelihoods and

Economic Development Program (LEDP), and the Multi

Donor Fund for Aceh and NIas (MDF)–funded Aceh

Economic Development Financing Facility (EDFF),

operating in 13 districts in Aceh. SPADA, Nias–LEDP and

EDFF all came to an end in 2012.

KPDT is presently engaging various national stakeholders

in the process of preparing follow–up programs to be

implemented under the Government’s Cluster II poverty

strategy. Specifically, the focus of this programmatic

development is on three core aspects of the KPDT’s

mandate, these being: (i) inclusive local economic

development to develop pathways out of poverty; (ii) rural

livelihood and supply chain analysis; and (iii) support to

local governments to improve strategic underperforming

public services in the poorest provinces and districts in

Indonesia. The development of KPDT’s program under

the forthcoming administration will build on current

initiatives at KDPT, such as the APBN–funded49 projects

like District Priority Products program (Produk Unggulan

Kabupaten or PRUKAB), the Integrated Rural Development

(Bedah Desa) program, the PUSAKDES program, which

supports the development of Small and Medium–sized

Enterprises (SMEs), and other programs intended to

promote infrastructure development and the capacity

building of local governments using block grant transfers.

In KPDT’s programs for local economic development and

the improvement of livelihoods, the community–driven

approach remains a core operational modality.

To reduce poverty in disadvantaged districts, KPDT

finances projects that promote: (i) the market–driven

development of labor intensive and job–creating SMEs

engaged in agriculture, livestock, fisheries, and of other

key small scale industries; (ii) sustainable improvements

to production practices and value addition in selected

priority commodities in agriculture, livestock, fisheries

and other small scale industries; (iii) the promotion of

rural food security, primarily through the development of

local food crops and fisheries that are supported by local

natural and productive resources, indigenous knowledge,

and appropriate agro–ecological conditions; and (iv)

the development of a sound agri–business investment

climate, with increased investment by domestic

Summary Information

Status Task Team Leaders Implementing Agency

Active Fabrizio Bresciani (fbresciani@worldbank.org)

World Bank

Start Date to Closing Date

2 July 2012 to 2 July 2014

Geographic Coverage Approved Budget

National US$ 414,000

WINDOW FOUR

TECHNICAL ASSISTANCE TO THE STATE MINISTRY OF DISADVANTAGED AREAS (KPDT)

48 A district is included as part of Indonesia’s disadvantaged areas by a set of criteria: (i) economic development, (ii) human resources, (iii) infrastructure, (iv) own–source revenues, (v) accessibility, and (vi) regional characteristics.

49 APNB refers to national budget, while APBD refers to the budget of provincial and district government.

150 | 2013 PSF PROGRESS REPORT

and foreign firms, increased volume of commodities

contracted between local producers and buyers, and

the inclusion of smallholders and rural producers in

competitive value chains through fair partnerships with

the private commercial sector.

While KPDT has focused on developing and

strengthening programs aimed at promoting local

economic development, particularly in rural areas, its

role as an institution to foster coordination between

national agencies and local governments is receiving

increasing attention. One major point is to ensure that

the implementation of nationally–relevant infrastructure

projects under the Master Plan for Accelerated Economic

Development (MP3EI) translates into increased

opportunities for disadvantaged districts in terms of better

connectivity, human development, and public services.

Given the relatively higher importance of natural resources

as productive assets, rural–based industries are expected

to play a critical role in this context. KPDT’s ability to

implement programs and projects in this regard will

therefore become a major test for its long–term viability as

an agency promoting local economic development and

territorial cohesion.

In view of the above, the project development objective

of this technical assistance project is to strengthen

KPDT’s capacity in the areas of policy development,

inter–agency coordination at the national and provincial

levels, and the design and implementation of investment

programs in Indonesia’s disadvantaged areas. In

particular, the Government is in the process of preparing

the National Strategic Plan for 2015–2019. As part of this

process, the Government is requesting line agencies to

define medium–term results and to prepare strategies

to achieve them. Given this, the activities proposed

by the project are intended to assist KPDT to better

define its strategic pillars, to develop an articulated and

well–aligned medium–term operational plan, the National

Medium–term Development Plan in Disadvantaged Areas

(RPJMN) 2015–2019, to strengthen its inter–ministerial

coordination capacity; to identify priority development

gaps in disadvantaged areas and strategies to tackle them;

and to conceptualize public projects that are consistent

with its strategic and programmatic framework.

PROGRESS IN 2013In 2013, the project did not conduct any activities

due to changes in the scope of the project requested

by the Government, which resulted in revisions to

the project concept note. Following the revision,

the project’s components and key activities have been

defined as follows:

Component 1–Strengthening KPDT’s Capacity

to Coordinate Government of Indonesia (GOI)’s

Interventions in Disadvantaged Areas: Four

sub–components aim to assist KPDT in improving

the efficiency and effectiveness of the Government’s

program in disadvantaged areas through improved

planning and M&E capacity to: (i) assist KPDT in providing

inputs to the RPJMN 2015–2019 and in preparing its

Medium–Term Strategy 2015–2019 (RENSTRA); (ii)

strengthen KPDT’s system of indicators and sub–indicators

to monitor and evaluate national public investment

programs in disadvantaged areas; (iii) develop and

strengthen coordination mechanisms with other line

agencies such as Bappenas, the Ministry of Finance,

and regional governments for enhanced programmatic

effectiveness; and (iv) assist KPDT in programming

the transfer of block grants to disadvantaged areas

(BANSOS, DEKON, SPDT ) and to field investment programs,

based on an assessment of the investment gap for each of

the districts under its mandate.

Component 2–Strengthening KPDT’s systems and

programming and operational capacity: Three

sub–components aim to assist KPDT in improving

the design, targeting, effectiveness, and efficiency

of its flagship programs, as follows: (i) to develop its

Medium–Term Operational Plan 2015–2019 and associated

2015 annual work plan; (ii) to provide an assessment of

the current performance of KPDT’s key programs (PRUKAB,

Bedah Desa, etc.) and of its block grant mechanisms

and related proposals to improve project design,

implementation processes and M&E; and (iii) to assist

the Policy and Planning Directorate in strengthening

KPDT’s M&E.

Component 3–Building the capacity of provincial

governments to provide assistance to disadvantaged

areas: Three sub–components are aimed at supporting

KPDT’s effort to build the capacity of the newly established

provincial agencies for disadvantaged areas (PPDT ) to

plan and coordinate their local programs in support of

disadvantaged districts under their mandate to: (i) develop

the guidelines for the development of Provincial Strategies

for Disadvantaged Areas (STRADA); (ii) develop a training

program for PPDT staff to develop their planning and

programming capacity; (iii) pilot the planning guidelines

and the training program in two provinces and to prepare

KPDT for national roll–out.

TECHNICAL ASSISTANCE TO THE STATE MINISTRY OF DISADVANTAGED AREAS (KPDT) | 151

Component 4–Program Management: The activities

supported under this component will include

the monitoring and evaluation of the project’s progress

and the timely reporting to KPDT, the PSF Secretariat, and

World Bank management and stakeholders.

FUTURE PLANSPending the extension of the project closing from 2 July

2014 to 31 March 2015 an assessment of the major

development gaps in disadvantaged areas and of

the factors creating these gaps will begin in March 2014,

following the mobilization of the first batch of consultants.

The assessment will be conducted through consultation

workshops with KPDT officials and stakeholders from

other relevant institutions at central and regional levels.

The output of the assessment will be used as an input

for assisting KPDT to prepare a strategy document for

the RPJMN 2015–2019 and the strategic development plan

for disadvantaged areas in the period from 2015 to 2019.

Result IndicatorsUnit of Measure

Base-line Total Target

Targets (cumulative)

Cumu-lative Prog-ress as of Dec 31, 2013

Difference with cumula-tive target for 20132013 2014 2015

Project Development Objective: To strengthen KPDT’s capacity in policy development, in inter–agency coordi-nation at the national and provincial level, and in the design and implementation of investment programs in Indonesia’s Disadvantaged Areas.

RENSTRA 2015–19 for Disad-vantaged Areas is prepared with inputs from the overall TA

# of docu-ments

0 1 document as input to Renstra 2015–19

0 1 1 0 The project has not yet started as planned due to a change in the coverage of the TA.KPDT establishes an inter–

ministerial coordinating mechanism with the aim of ensuring that policies and strategies for disadvantage areas are shared and con-curred upon

# of coor-dination meeting

0 4 0 2 4 0

Strengthened coordination mechanism with other line agencies

# of coor-dination meetings

0 4 0 2 4 0

Improved block grant design # of docu-ment/assess-ment reports

0 1 0 1 1 0

Assessment reports on the current performance of KPDT’s key programs

# of assess-ment reports

0 3 0 0 3 0

Improved Monitoring and Evaluation System and Re-sult Framework

No of man-ual

0 2 0 0 2 0

Trained provincial staff on planning

# of staff trained by gender

0 20 (10 wom-en and 10 men)

0 0 20 0

Monitoring and progress reports

No of re-ports

0 6 0 3 3 1 –2

KEY RESULTS

152 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEWSince 2008, PNPM Mandiri has been scaled up to

the national level and covers 63,163 villages and

10,924 wards in Indonesia. A natural consequence of

the scale–up was a corresponding increase in the total

value of funds disbursed by the program, which has

placed significant stress on the program’s governance

mechanisms. For instance, total disbursements of PNPM

Rural for 2013 amounted to a value of approximately

US$1 billion, and likewise revolving loan funds (RLFs)

reached the accumulation of significant amounts of

capital at the local level (with a value of approximately

US$864 million as of December 2013). While official

estimates are that less than one percent of PNPM funds

are lost due to corruption or through other leakage,

the difficulty of uncovering corrupt transactions means

the actual figure is likely to be significantly higher.

PNPM corruption cases have generally involved small

amounts of money, which means that they are not

necessarily accorded high priority. Thus, responses

from the formal justice system can be very slow or

non–existent. More recently, however, there have been

cases involving funds of a higher value (exceeding

Rp 200 million, or approximately US$19,600). Many

of these cases involve money being taken from RLF

groups through the creation of fictitious groups, where

the names of unsuspecting women are used to justify

the advancement of funds to the perpetrator. This places

the women whose names have been used at risk of

being required to repay money they have never received,

unless the fraud can be proved. In addition to corruption,

the program also faces a number of legal questions

regarding asset management arrangements and the legal

status of community institutions.

Left unaddressed, even small–scale corruption cases in

PNPM may have a broad negative impact by undermining

the program’s attempts to change local norms regarding

participation and accountability. Encouragingly,

communities continue to demonstrate a strong sense of

ownership over PNPM and a high level of commitment

to identifying and resolving corruption cases. When

successful, the experience can be empowering. However,

particularly for larger cases, significant obstacles to

successful resolution exist. Even if communities manage

to refer a case to the formal justice system, they

generally lack appropriate witness support (including

support related to briefings on court processes or travel

costs to attend court proceedings) and do not have

a good understanding of strategies for the effective

monitoring and oversight of prosecutions. They also

face conflicting forces in coordinating their efforts,

namely, between the PNPM approach to addressing

corruption (which prioritizes community dispute

resolution) and the approach of the legal system (which

prioritizes prosecution).

At present, PNPM Rural and Urban do not retain in–house

lawyers, at either the national or regional levels. This

hampers the ability of these programs to effectively

respond to cases involving the misuse of project funds

and to the other legal issues outlined above. In response,

the PNPM Justice Services project has been designed

with the objective of increasing the level of oversight,

tracking and management of corruption cases involving

PNPM funds and responding to community justice

needs during the resolution of PNPM corruption cases.

It will operate nation–wide for an initial trial period of

two years and comprises the following components:

(i) the establishment of a set of in–house lawyers who

will initially work alongside PNPM Rural managers and

the Ministry of Home Affairs at the provincial and national

levels, with a focus on tracking PNPM Rural corruption

cases and on dealing with legal issues arising from

the delivery of PNPM and on assisting communities

to meet their legal needs during the course of PNPM

Summary Information

Status Task Team Leaders

Implementing Agency

Bank Executed Trust Fund: activeRecipient Executed Grant Agreement: pending

Hans Antlov (hantlov@worldbank.org)

To be determined

Start Date to Closing Date

20 May 2013 to 28 February 2016

Geographic Coverage Approved Budget

National US$ 3,964,400

WINDOW FOUR

PNPM JUSTICE SERVICE

PNPM JUSTICE SERVICE | 153

corruption cases; (ii) the creation of a fighting fund

to cover community costs associated with PNPM

corruption cases (for example travel costs, legal advice

and representation); and (iii) the provision of better

guidance related to the process of investigating PNPM

corruption cases and referring these cases to the formal

justice system.

The project is founded on the assumption that PNPM

facilitators and communities could better manage

corruption cases if they had clearer guidance; better

access to information on good practices; and additional

legal support. If this proves to be the case, the project

may also demonstrate the broader value of providing

legal support to communities and making available

more information on the progress of corruption cases

through the legal system. Thus, the approach tested

through this project could potentially be applied to

combating corruption in other government poverty

reduction programs.

PROGRESS IN 2013 Over the year, additional analytical work was undertaken

to strengthen the understanding of the institutional

structures and incentives within the justice sector that

may impact upon the investigation and prosecution of

PNPM corruption cases. It also sought to reveal how these

institutional incentives operate in the field by analyzing

four large PNPM corruption cases in two provinces. This

complemented the initial analytical work conducted in

2012 and focused on community resolution methods

and the role of communities and field consultants in

the resolution of PNPM corruption cases in the Indonesian

criminal justice system. Together, the two rounds of

research highlight both the demand and the supply

factors that constrain and incentivize the enforcement of

corruption laws in relation to PNPM.

FUTURE PLANSThe JMC confirmed that the management of the project

will be shifted to the Australian–Indonesian Partnership

for Justice (AIPJ ) and as such, the administrative

arrangements associated with this shift will be finalized

during 2014. The project team will carry out a number

of design consultations. This could lead to closer links

between this project and the Legal Aid and Community

Legal Empowerment project, which, as its name suggests,

has a broader focus on community legal empowerment.

The existing project design will also be reviewed in light

of the approval of the Village Law, which will provide

significantly increased funding for villages and generate

a need for improved fiduciary safeguards and access to

justice services. The review may entail holding workshops

on (i) how access to justice fits into the broader village

governance agenda; (ii) how PNPM principles and

practices of accountability and legal certainty could be

adopted by the Government in implementing the Village

Law; and (iii) how to improve the provision of basic public

services at the frontline agency level.

LESSONS LEARNEDThe project identified a range of different institutional

factors influencing the behavior of law enforcement

agents and enforcement outcomes. In particular, low

budget allocations to cover prosecutors’ operational

costs require external resource mobilization for PNPM

law enforcement. Local governments, communities

and PNPM can indirectly subsidize operational costs

by assisting prosecutors with the collection of case data

and the transport of witnesses. In turn, PNPM sanctions

play a key role in incentivizing communities (and through

them local governments) to mobilize these external

resources. With performance targets in relation to

corruption cases, prosecutors may be further incentivized

to handle PNPM cases because they are relatively quick

and easy to process. While this is positive in some respects,

it will be important to ensure that premature prosecutions

do not undermine the community resolution process,

which is a core component of the PNPM model. Likewise,

it is also critical to protect communities from unwarranted

prosecutions by prosecutors seeking to meet targets.

Social accountability strategies often employed by civil

society groups to exert pressure on law enforcement

agencies are less successful when the equation

(financial or otherwise) disproportionately favors

the corruptor/accused, but can be critical when

the equation is more closely balanced. Fieldwork has

identified several instances where communities and PNPM

consultants have successfully used social accountability

approaches to the resolution of PNPM corruption

cases. These approaches will remain important given

the weakness in formal accountability mechanisms for

law enforcement agencies. Increasing the availability of

legal support for both community members and PNPM

consultants should provide communities with greater

access to the knowledge and skills for more effectively

employing social accountability strategies and thus give

them another tool in the fight against corruption in PNPM.

154 | 2013 PSF PROGRESS REPORT

PROJECT RATIONALE AND OVERVIEW A consequence of Indonesia’s ongoing process of

democratization and of its decentralization of political

and administrative authority has been the emergence

of many new sites for social contestation on key issues

such as political representation, the regulation of

productive assets and the delivery of public services.

However, the legacy of 32 years of authoritarian rule

has been apparent in the lack of strong and responsive

institutions that can effectively mediate the resolution of

such issues for the common good. Encouragingly, a series

of recent policy developments related to community

empowerment and justice sector reform are converging

to create opportunities to establish higher levels of

accountability and better systems for dispute resolution

at the sub–national level.

The PNPM Roadmap mandates improvements to village

level governance through the provision of community

legal education and with the measures to improve

access to independent legal advice. These are intended

to serve as a means of empowering citizens to resolve

disputes and to better oversee village decision–making

processes.50 With village communities to be granted

increased autonomy and a higher level of financial

resources under the recently enacted Village Law,

it is more critical than ever to ensure that citizens have

the necessary tools to perform these roles optimally.

At the same time, as part of its endeavors to reform

the justice sector, the Indonesian Government is making

significant efforts to increase access to justice for

the poor and marginalized. Most notably, it has recently

established a national legal aid system under which legal

aid organizations accredited by the Ministry of Law and

Human Rights deliver government–funded legal aid

services. These services have the potential to serve as

a valuable resource for citizens seeking to uphold their

rights in relation to the delivery of public services and

the allocation of community resources.

In the context of these policy developments, the Legal Aid

and Community Legal Empowerment was established to

fund a set of activities that will support the Government

in the implementation of its agenda to achieve a higher

level of community empowerment within PNPM and

to improve access to justice through the new legal aid

system. The stated development objective of the project

is to increase the quality and quantity of justice services

delivered through a strong, identifiable and repeatedly

usable network of legal service and information providers.

With increased access to community legal education

and to independent legal advice, citizens will be better

equipped to resolve disputes and to exercise greater

oversight of village decision–making processes, both in

relation to PNPM and more generally.

At the core of the project is the provision of justice

services through paralegals. A paralegal is a lay person

equipped with basic legal training and training in matters

related to government procedures who engages in

a number of activities related to education, mediation,

advocacy and community organization to address

instances of injustice. Qualitative studies in Indonesia have

demonstrated that the deployment of paralegals may

be an effective means to ‘enlarge the shadow of the law’

by fostering a better understanding of legal rights. This

Summary Information

Status Task Team Leaders Implementing Agency

Being Activated

Hans Antlov (hantlov@worldbank.org)

To be determined

Start Date to Closing Date

1 April 2014 to 31 March 2017

Geographic Coverage Approved Budget

Six provinces (to be determined) US$ 6,285,072

WINDOW FOUR

LEGAL AID COMMUNITY LEGAL EMPOWERMENT

50 Pokja Pengendali PNPM and National Team for the Acceleration of Poverty Reduction (TNP2K), Peta Jalan PNPM: Menuju Keberlanjutan Program Pemberdayaan Masyarakat (PNPM Roadmap: Towards a Sustainable Community Empowerment Program) (Jakarta, September 2012, pp 53–55) (available at http://www.pnpm–mandiri.org/perpustakaan/buku/Dokumen_Roadmap_Final.pdf ).

LEGAL AID COMMUNITY LEGAL EMPOWERMENT | 155

understanding may improve informal dispute resolution

practices, even when citizens remain reluctant or unable

to resort to the state justice system.51 Paralegals can also

perform certain tasks that require less complex legal

knowledge for a much lower cost than fully qualified

lawyers and provide basic services in remote areas where

lawyers are unavailable. For example, paralegals trained

by the Female–Headed Household Empowerment

program (PEKKA) have had a significant impact in

the areas where the program operates by providing

assistance to women to enable them to draft and file writs

to initiate divorce, property claims, inheritance claims and

many other matters.

While paralegals may play a highly significant positive

role in terms of increasing community members’ access

to justice and in improving village level governance,

they are clearly not a substitute for trained lawyers in all

situations. Particularly in complex legal cases, a paralegal

will often lack the necessary skills to deal with the issues

that arise. Instead, the best possible level of service

in a resource–constrained environment is likely to be

achieved by community–based paralegals and lawyers

(particularly those associated with legal aid organizations)

working together more effectively. However, at present,

such cooperation is frequently compromised by the poor

quality of training provided to paralegals and the human

and financial resource constraints under which many legal

aid organizations operate. In addition, there is a tendency

among some lawyers and paralegals to view each other

with mutual suspicion, with lawyers considering paralegals

as under qualified competitors and paralegals regarding

lawyers as tainted by their participation in a corrupt

justice system.

The project will operate in six provinces (to be

determined) and will comprise the following four

components: (i) pilots to test the provision of support

for paralegals within Community Learning Centers

(RBM) associated with PNPM to enhance the quality

of training they receive and to ensure that they have

access to lawyers if necessary; (ii) the development

and establishment of networks between legal aid

organizations and paralegals to build the capacity of legal

aid organizations in non–RBM locations to more effectively

deliver services through the training of paralegals and

the development of strong networks to the village

level and to justice sector/government institutions; (iii)

the establishment of a legal services division within

the Female–Headed Household Empowerment Program

(PEKKA) to respond to the increased demand for legal

services by PEKKA paralegals; and (iv) strengthening

the Indonesian Paralegal Network (JPI) to support

its evolution into an effective peak body to improve

the training standards of community paralegals and to

represent their interests at the policy level.

PROGRESS IN 2013After a period of intensive work on the concept design,

the project was approved by the Joint Management

Committee (JMC) on 12 July 2013. The JMC included

a note that the task team should further strengthen

the links between the project and PNPM, with particular

attention to how the project will support governance and

anticorruption work within PNPM. The team subsequently

undertook further consultations on this matter with

the Steering Committee of PNPM (Pokja Pengendali) to

explain how the project will address this concern. The

team has drafted a detailed concept note in this regard.

Policy and research work has also been carried to

support the project design. The project team provided

analytical support to the Ministry of Law and Human

Rights to assist in the drafting of regulations necessary

for the implementation of the new legal aid system.

This included conducting a survey of 230 legal aid

organizations on behalf of the Ministry to gather

information related to caseloads, funding, staffing and

other areas in which legal aid organizations may be in

particular need of assistance to improve their capacity to

deliver services. The team also provided input on matters

related to community–level justice to assist the Supreme

Court in the drafting of a Supreme Court Regulation

regarding circuit courts, fee waivers and legal aid posts

at courts, all measures aimed at increasing access to

justice for the poor. In addition, the team made progress

towards the completion of a review of paralegal training

practices from previous projects, in order to strengthen

the quality of paralegal training to be provided under

the project.

FUTURE PLANSIn 2014, administrative arrangements to

shift the management of the project to

the Australian–Indonesian Partnership for Justice (AIPJ )

will be completed. Prior to the shift, the project team

51 Berenschot, W & Rinaldi, T “Paralegalism in Indonesia: Balancing Relationships in the Shadow of the Law”, (unpublished paper, Van Vollenhoven Institute for Law, Governance and Development: Leiden, January 2012).

156 | 2013 PSF PROGRESS REPORT

will conduct a range of internal and external design

consultations to facilitate the change in management.

These changes could lead to the development of closer

links between this project and the PNPM Justice Services

project, which has a more specific focus on improving

the response to corruption cases related to PNPM.

The existing project design will also be reviewed in

the context of the promulgation of the Village Law, which

will provide significantly increased funding for villages

and create an accompanying need for improved fiduciary

safeguards and for increased access to justice services.

The review may entail holding workshops on matters such

as the following: (i) how access to justice and measures

to improve this access can support the broader village

governance agenda in the context of the new Village Law;

(ii) how PNPM principles and practices of accountability

and legal certainty can inform and be implemented

through the implementing regulations under the Village

Law; and (iii) how to improve the provision of basic public

services at the frontline agency level.

LESSONS LEARNEDWith legal aid organizations currently operating under

severe capacity constraints, significant investment

will be required to develop their capacities. A survey

that the project team carried out for the Ministry of

Law and Human Rights indicated that of 230 legal aid

organizations surveyed, 54 percent had a total budget of

less than Rp 5 million (approximately US$490) per month,

including for non–legal aid related activities. A quarter

of organizations reported refusing to take cases because

of a lack of funding, while just over half (52 percent)

reported reducing the level of service they provided for

the same reason. Twenty–nine organizations (13 percent)

reported having no access to a qualified lawyer, while

a further 35 (15 percent) reported access to only one or

two lawyers, most of whom were part–time. Consequently,

the numbers of cases handled by these organizations are

very low, with 50 percent of organizations handling less

than nine litigious cases per year.

In addition to these findings, an iterative process

proved to be critical for fine–tuning a project design,

whereby the issues identified by legal aid organizations

themselves as constraints guided the support to

be provided under the project. The most frequently

identified constraint (73 percent of organizations) was

a lack of operational funding for handling cases (apart

from salaries). Accordingly, the project intends to

provide legal aid organizations with funding to ensure

lawyers have the necessary mobility to handle cases

and to build effective networks with paralegals. Almost

half of the organizations (48 percent) stated that they

needed assistance to train new and existing paralegals,

while 49 percent stated that they needed assistance to

strengthen their financial management and administrative

capacities. The project is then designed to respond

directly to both of these identified needs. In addition,

38 percent of organizations stated that they found

it difficult to access legal information and 49 percent

stated that they found it difficult to understand or make

use of that information once they had it. The project will

provide training to legal aid organizations to improve their

ability to access and utilize legal information.

ANNEXES

158 | 2013 PSF PROGRESS REPORT

ANNEX ONE: FINANCIAL OVERVIEWIn 2013, the PSF continued to respond to Government’s

request for increased financial and technical assistance to

support its poverty reduction efforts through the PNPM

programs. The Millennium Challenge Account–Indonesia

(MCA–I) and the Australian Department of Foreign Affairs

and Trade (DFAT ) pledged an additional US$127 million.

The Joint Management Committee (JMC) approved

US$38 million for new activities or additional financing.

The bulk of the PSF’s portfolio (77 percent) is executed

by Indonesian institutions to communities across

Indonesia through PNPM special programs that aim

to improve the poor’s access to health and education

services and to provide communities affected by disasters

or crisis with emergency assistance. The rest of

the portfolio is being invested in sustaining the building

blocks of PNPM, including building capacity across all

levels of the Government, strengthening management

systems, producing high quality analytical work to support

decision makers, and engaging civil society organizations

(CSO) concerned with inclusive poverty reduction to

leverage their more specialized, intensive approach to

complement PNPM.

PLEDGES AND CONTRIBUTIONS TO THE PSFIn 2013, pledges to the PSF increased by 45 percent

from US$301 million to reach almost US$438 million

as cash contributions increased by 41 percent from

US$259 million to reach US$365 million.

During the year, two donors — the Government of

Netherlands and the Government of the United Kingdom

— exited the MDTF.

COMMITMENTSWith the realization of the project pipeline and topping

up of existing activities, the value of JMC approved

activities grew by 12 percent from US$305 million

at the end of 2012 to US$343 million at the end of 2013.

About 87 percent of the additional commitments were

for three new activities: US$10 million for the PNPM

Operation, Delivery and Oversight to strengthen

Government’s capacity for program oversight and

implementation; US$6 million for Legal Aid and

Figure 22. Share of funding by executing agencies

Figure 23. Donor’s contributions(US$ million)

13%

23%

64%Government

WB

CSO

2013

365

106

2012

259

52

2011

207

76

2010

13190

2009

4118

2008

2323

CY ContributionsCumulative Contribution

ANNEX ONE: FINANCIAL OVERVIEW | 159

Community Legal Empowerment to train paralegals,

provide financial and technical assistance to legal aid

organizations, and incentivize the forging of networks

between the two in order to improve the quality and

quantity of justice services delivered at the local level;

and US$17 million for PNPM Peduli Phase II to support

local CSO activities carried out in collaboration with

marginalized individuals/groups to address issues of right,

access to basic services and livelihoods; to influence

and promote inclusive systems of policies, programs

and practice at local and national levels; and to provide

targeted support to local and national CSOs to strengthen

their management capacities and programming for social

inclusion. The remaining 13 percent of the commitments

were for topping up existing activities such as Barefoot

Engineers, PNPM Peduli, and Monitoring & Evaluation and

Special Studies.

DISBURSEMENTSA total of US$246 million has been disbursed

since 2008 out of the received contributions of

US$365 million.52 In 2013 PSF financed activities

disbursed US$65 million, up from US$59 million in 2012.

The disbursement ratio53 for the year was 52 percent.

Government implemented activities, which disbursed

US$47 million, account for the largest share, followed

by the PSF/World Bank, and CSOs, which disbursed

US$11 million and US$7 million, respectively. In

total, the Government has disbursed US$178 million,

the PSF/World Bank US$52 million and CSOs US$16 million

since 2008.

Figure 24. Approved commitments(US$ million)

Figure 25. Total disbursement(US$ million)

2008 2009 2010 2011 2012 2013

343305

220

90

4237

2008 2009 2010 2011 2012 2013

2 9

36

122

181

246

52 These funds have been transferred to — but not necessarily fully utilized by — PSF grant recipients. Unused funds are returned to the PSF within six months after project closing.

53 Disbursed within the Year/Undisbursed Commitments at Year Start.

160 | 2013 PSF PROGRESS REPORT

WINDOW 1Support

to SpecialProgram

WINDOW 2Implementation

and CoordinationSupport

WINDOW 3On-granting to

IndonesianCivil Society

WINDOW 4M&E andSpecialStudies

72

13

60

5310

47

CY 13 Actual Disbursement

CY 14 Disbursement Plan

Window One, which provides direct budget support to

Government special programs, disbursed US$47 million

in 2013. PNPM Generasi, which disbursed US$41 million,

accounts for the majority of the disbursements.

PNPM Urban in Aceh and Nias, whose inclusion in

the Government’s Green Book was delayed in the previous

year, also started disbursing and disbursed a total of

US$6 million in 2013. Disbursements under Window One

are expected to remain strong in 2014 especially with

the scale up of PNPM Generasi. Combined, PNPM Generasi

and PNPM Urban in Aceh and Nias are expected to

disburse approximately US$59 million in 2014.

Window Two, which provides coordination and

implementation support to the Government, disbursed

approximately US$10 million in 2013, similar to the year

before. With the approval of new activities such as

the PNPM Operation, Delivery and Oversight, the level

of investment is expected to be maintained or even

increased in 2014 to support the implementation of

the new Village Law. The scale up of Creative Communities

II is another activity that is expected to contribute to

the increased investment in 2014.

Figure 26. Disbursements Performance(US$ million)

Figure 27. CY 14 Disbursement Plan vs CY 13 Actual disbursement(US$ million)

Window Three, which provides support to Indonesian

philanthropies and civil society groups working on

poverty reduction at the grassroots level and finances

the preparation of the Disabled Peoples Organizations

(DPO) project, disbursed US$3 million in 2013.

Disbursements from the PSF multi–donor trust fund are

expected to wind down in 2014 as the PNPM Peduli and

DPO portfolios transition to DFAT.

Window Four, which provides technical assistance

and M&E services to PNPM, disbursed approximately

US$5 million. Most of the disbursements were

for the PNPM Revolving Loan Fund (RLF) capacity

building pilot and the PNPM M&E and Special Studies.

Disbursements are expected to increase in 2014 as

the RLF and M&E services are planning to disburse nearly

$7 million in 2014.

2009 2010 2011 2012 2013

6559

86

28

7

124

99

54

3436

Undisbursed Commitments at Year StartDisbursed Within the Year

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2013 | 161

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2013

MILLIONS OF US$

RECEIPTS (ACTUAL) 2008 2009 2010 2011 2012 2013 Total

Government of Netherlands 14.67 4.50 0.83 11.90 – – 31.90

Government of Australia 6.20 3.14 14.89 34.09 50.34 78.10 186.76

Government of Denmark 2.07 4.54 4.27 4.23 – – 15.12

Government of United Kingdom – 5.63 2.31 – – – 7.93

European Union – – 3.35 1.35 1.26 0.64 6.60

Millennium Challenge Account–Indonesia – – – – – 22.46 22.46

Government of The United States of America – – 64.70 24.81 – 4.85 94.36

SUB–TOTAL 22.95 17.81 90.35 76.38 51.60 106.05 365.14

Investment Income 0.44 0.40 0.34 0.18 0.35 0.33 2.04

SUB–TOTAL 23.39 18.21 90.69 76.56 51.94 106.39 367.18

Administration Fee (1%) 0.24 0.18 0.91 0.76 0.50 1.06 3.65

TOTAL 23.15 18.03 89.78 75.80 51.44 105.33 363.53

CUMMULATIVE 2008 2009 2010 2011 2012 2013

Approved Commitments 37.39 42.25 90.27 220.44 305.36 342.80

Disbursements 1.84 8.52 36.20 121.84 181.16 246.14

Undisbursed trust funds and grants 35.56 33.73 54.07 98.60 124.19 96.66

162 | 2013 PSF PROGRESS REPORT

WINDOW ONE:SUPPORT TO SPECIAL PROGRAMS 2008 2009 2010 2011 2012 2013

Approved Commitments 16.00 16.00 44.25 156.88 222.22 216.79

1 PNPM Generasi ( Community CCT ) Scale–up – – 10.20 38.32 73.32 73.32

2 PNPM Generasi ( Community CCT ) Scale–up – – – – 31.70 31.70

3 PSF Disaster Mgt Support — Rekompak (MDTF TF070967) – – – 0.40 0.40 0.40

4 PSF Disaster Mgt Support — Rekompak (USAID TF071562) – – – 11.10 11.10 11.10

5 PNPM Urban in Aceh – – – 24.81 23.50 23.50

6 PSF Disaster Mgt Support — PNPM Rural (MDTF TF070967) – – – 0.20 0.20 –

7 PSF Disaster Mgt Support — PNPM Rural (USAID TF071562) – – – 13.90 13.90 13.90

8 PNPM Green/Renewable Energy 16.00 16.00 34.05 34.05 34.00 30.68

9 Global Financial Crisis Supplement (GFCS) for PNPM Rural (AF) – – – 32.70 32.70 30.84

10 PSF Disaster Mgt Support — PNPM Urban – – – 1.40 1.40 1.34

Disbursements – 1.60 19.39 91.27 130.26 177.15

1 PNPM Generasi ( Community CCT ) Scale–up – – 10.20 32.84 42.34 72.61

2 PNPM Generasi ( Community CCT ) Scale–up – – – – – 10.78

3 PSF Disaster Mgt Support — Rekompak (MDTF TF070967) – – – 0.40 0.40 0.40

4 PSF Disaster Mgt Support — Rekompak (USAID TF071562) – – – 4.85 10.25 11.10

5 PNPM Urban in Aceh – – – – – 6.40

6 PSF Disaster Mgt Support — PNPM Rural (MDTF TF070967) – – – – – –

7 PSF Disaster Mgt Support — PNPM Rural (USAID TF071562) – – – 5.87 11.55 13.00

8 PNPM Green/Renewable Energy – 1.60 9.19 16.00 31.68 30.68

9 Global Financial Crisis Supplement (GFCS) for PNPM Rural (AF) – – – 30.61 32.70 30.84

10 PSF Disaster Mgt Support — PNPM Urban – – – 0.70 1.35 1.34

Undisbursed Funds 16.00 14.40 24.86 65.61 91.96 39.64

1 PNPM Generasi ( Community CCT ) Scale–up – – – 5.48 30.98 0.72

2 PNPM Generasi ( Community CCT ) Scale–up – – – – 31.70 20.92

3 PSF Disaster Mgt Support — Rekompak (MDTF TF070967) – – – – – –

4 PSF Disaster Mgt Support — Rekompak (USAID TF071562) – – – 6.25 0.85 –

5 PNPM Urban in Aceh – – – 24.81 23.50 17.10

6 PSF Disaster Mgt Support — PNPM Rural (MDTF TF070967) – – – 0.20 0.20 –

7 PSF Disaster Mgt Support — PNPM Rural (USAID TF071562) – – – 8.03 2.35 0.90

8 PNPM Green/Renewable Energy 16.00 14.40 24.86 18.05 2.32 –

9 Global Financial Crisis Supplement (GFCS) for PNPM Rural (AF) – – – 2.09 – –

10 PSF Disaster Mgt Support — PNPM Urban – – – 0.70 0.05 –

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2013 | 163

WINDOW TWO:IMPLEMENTATION AND COORDINATION SUPPORT 2008 2009 2010 2011 2012 2013

Approved Commitments 11.95 12.90 19.37 30.31 36.34 50.04

1 PSF Secretariat/Operations Support 3.65 3.65 5.35 5.35 6.59 8.39

2 USAID Program Mgt and Administration – – – 2.89 2.89 2.89

3 Socialization/Dissemination: Communication Strategy 2.00 2.00 2.50 4.35 4.35 4.35

4 PNPM Supervision & Monitoring (Rural) 4.00 4.00 6.00 6.15 5.12 5.35

5 PNPM Field Team Operations (Rural) – – – 1.50 2.53 2.80

6 MIS/Info Management: Integrated MIS for PNPM Mandiri (Simpadu II)

– – 0.98 0.98 0.98 0.98

7 TA Support to Bappenas and Pokja Pengendali PNPM (Kesra) – – – 1.66 1.66 1.66

8 PNPM RESPEK: Barefoot Engineers Training Wave III – – – 1.75 1.75 4.09

9 Barefoot Engineers Training III (BETF) – – – – – 0.07

10 PNPM Community Facilitator Devt Program, Phase III (Approved 7/25/2011)

– – – 1.19 1.19 1.19

11 National Community Empowerment Program In Urban Areas For 2012–2014 Supervision

– – – – 0.35 0.35

12 Creative Communities II (BETF) – – – – 0.27 0.27

13 Creative Communities II (RETF) – – – – 0.61 0.61

14 Pro–Poor Planning and Budgeting – – – – 1.67 1.67

15 Village Training Program (BETF) – – – – 0.40 0.40

16 Village Training Program (RETF) – – – – 1.25 1.25

17 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight

– – – – – 6.01

18 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (USAID)

– – – – – 2.44

19 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (PNPM Urban)

– – – – – 0.55

20 USAID Supervision and Operational – – – 0.15 0.15 0.15

21 PNPM Green Awareness Raising Project – – – – 0.27 0.27

22 Green PNPM Env. Awareness: Pilot Project 2.30 2.30 2.30 2.30 2.30 2.30

23 PNPM Supervision & Monitoring (Urban) – – 0.50 0.80 0.80 0.79

24 PNPM Community Facilitator Devt Program – 0.95 0.95 0.95 0.95 0.95

25 Training of Local Auditor (Inspektorat Kota/Kab) in PNPM Mandiri Perkotaan 2010

– – 0.30 0.30 0.29 0.29

26 Policy Workshop – – 0.50 – – –

Disbursements 0.92 3.21 8.05 12.87 22.78 33.08

1 PSF Secretariat/Operations Support 0.60 1.56 2.98 4.62 5.49 5.95

2 USAID Program Mgt and Administration – – – 0.03 0.63 1.64

3 Socialization/Dissemination: Communication Strategy 0.11 0.35 1.26 1.90 2.68 3.72

4 PNPM Supervision & Monitoring (Rural) 0.22 1.29 2.65 4.09 5.19 5.73

5 PNPM Field Team Operations (Rural) – – – 0.15 1.89 3.01

6 MIS/Info Management: Integrated MIS for PNPM Mandiri (Simpadu II)

– – – 0.10 0.30 0.61

7 TA Support to Bappenas and Pokja Pengendali PNPM (Kesra) – – – 0.11 0.89 1.70

8 PNPM RESPEK: Barefoot Engineers Training Wave III – – – – 1.18 3.19

9 Barefoot Engineers Training III (BETF) – – – – – 0.01

10 PNPM Community Facilitator Devt Program, Phase III (Approved 7/25/2011)

– – – – 0.19 1.12

11 National Community Empowerment Program In Urban Areas For 2012–2014 Supervision

– – – – – 0.02

12 Creative Communities II (BETF) – – – – 0.07 0.25

13 Creative Communities II (RETF) – – – – – 0.60

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WINDOW TWO:IMPLEMENTATION AND COORDINATION SUPPORT 2008 2009 2010 2011 2012 2013

14 Pro–Poor Planning and Budgeting – – – – – 0.74

15 Village Training Program (BETF) – – – – – 0.21

16 Village Training Program (RETF) – – – – – –

17 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight

– – – – – –

18 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (USAID)

– – – – – –

19 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (PNPM Urban)

– – – – – –

20 USAID Supervision and Operational – – – 0.05 0.15 –

21 PNPM Green Awareness Raising Project – – – – 0.27 0.27

22 Green PNPM Env. Awareness: Pilot Project – – – – 1.84 2.30

23 PNPM Supervision & Monitoring (Urban) – – 0.22 0.59 0.78 0.79

24 PNPM Community Facilitator Devt Program – 0.01 0.95 0.95 0.95 0.95

25 Training of Local Auditor (Inspektorat Kota/Kab) in PNPM Mandiri Perkotaan 2010

– – – 0.29 0.29 0.29

26 Policy Workshop – – – – – –

Undisbursed Funds 11.03 9.68 11.32 17.44 13.56 16.96

1 PSF Secretariat/Operations Support 3.05 2.09 2.37 0.72 1.09 2.44

2 USAID Program Mgt and Administration – – – 2.86 2.26 1.25

3 Socialization/Dissemination: Communication Strategy 1.89 1.65 1.24 2.45 1.67 0.63

4 PNPM Supervision & Monitoring (Rural) 3.78 2.71 3.35 2.06 (0.07) (0.38)

5 PNPM Field Team Operations (Rural) – – – 1.35 0.64 (0.21)

6 MIS/Info Management: Integrated MIS for PNPM Mandiri (Simpadu II)

– – 0.98 0.88 0.67 0.37

7 TA Support to Bappenas and Pokja Pengendali PNPM (Kesra) – – – 1.55 0.77 (0.04)

8 PNPM RESPEK: Barefoot Engineers Training Wave III – – – 1.75 0.57 0.89

9 Barefoot Engineers Training III (BETF) – – – – – 0.06

10 PNPM Community Facilitator Devt Program, Phase III (Approved 7/25/2011)

– – – 1.19 1.00 0.07

11 National Community Empowerment Program In Urban Areas For 2012–2014 Supervision

– – – – 0.35 0.33

12 Creative Communities II (BETF) – – – – 0.20 0.03

13 Creative Communities II (RETF) – – – – 0.61 0.01

14 Pro–Poor Planning and Budgeting – – – – 1.67 0.92

15 Village Training Program (BETF) – – – – 0.40 0.18

16 Village Training Program (RETF) – – – – 1.25 1.25

17 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight

– – – – – 6.01

18 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (USAID)

– – – – – 2.44

19 Technical Assistance for PNPM Mandiri Operation, Delivery and Oversight (PNPM Urban)

– – – – – 0.55

20 USAID Supervision and Operational – – – 0.10 – 0.15

21 PNPM Green Awareness Raising Project – – – – – –

22 Green PNPM Env. Awareness: Pilot Project 2.30 2.30 2.30 2.30 0.46 –

23 PNPM Supervision & Monitoring (Urban) – – 0.28 0.21 0.02 –

24 PNPM Community Facilitator Devt Program – 0.94 – – – –

25 Training of Local Auditor (Inspektorat Kota/Kab) in PNPM Mandiri Perkotaan 2010

– – 0.30 0.01 0.00 –

26 Policy Workshop – – 0.50 – – –

ANNEX TWO: PSF FINANCIAL STATEMENT AT END 2013 | 165

WINDOW THREE: ON–GRANTING TO INDONESIAN CIVIL SOCIETY 2008 2009 2010 2011 2012 2013

Approved Commitments – – 4.22 4.27 11.52 29.67

1 PNPM Window 3 — PNPM Peduli Phase II – – – 0.35 1.56 1.56

2 PNPM Peduli Executing Organization: Lakpesdam – – – 0.87 1.52 1.84

3 PNPM Peduli Executing Organization: Kemitraan – – – 1.56 2.73 3.34

4 PNPM Peduli Executing Organization: ACE (Assoc for Community Empowerment)

– – – 1.28 1.97 2.46

5 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF)

– – – – 1.25 0.96

6 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF)

– – – – 0.55 0.84

7 PNPM Window 3 Phase I — PNPM Peduli (Capacity of Philantrophy) – – 4.00 – 1.77 1.84

8 PNPM Peduli Phase II — Additional Financing (RETF) – – – – – 15.95

9 PNPM Peduli Phase II — Additional Financing (BETF) – – – – – 0.70

10 PNPM Window 3 — PNPM Peduli Phase I – – 0.22 0.22 0.17 0.17

Disbursements – – 0.05 1.43 6.34 9.03

1 PNPM Window 3 — PNPM Peduli Phase II – – – 0.06 0.67 1.10

2 PNPM Peduli Executing Organization: Lakpesdam – – – 0.16 1.42 1.84

3 PNPM Peduli Executing Organization: Kemitraan – – – 0.75 2.12 3.25

4 PNPM Peduli Executing Organization: ACE (Assoc for Community Empowerment)

– – – 0.29 1.97 2.41

5 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF)

– – – – – 0.27

6 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF)

– – – – – –

7 PNPM Window 3 Phase I — PNPM Peduli (Capacity of Philantrophy) – – – – – –

8 PNPM Peduli Phase II — Additional Financing (RETF) – – – – – –

9 PNPM Peduli Phase II — Additional Financing (BETF) – – – – – –

10 PNPM Window 3 — PNPM Peduli Phase I – – 0.05 0.17 0.17 0.17

Undisbursed Funds – – 4.17 2.84 5.18 20.63

1 PNPM Window 3 — PNPM Peduli Phase II – – – 0.29 0.89 0.45

2 PNPM Peduli Executing Organization: Lakpesdam – – – 0.70 0.10 0.01

3 PNPM Peduli Executing Organization: Kemitraan – – – 0.81 0.62 0.10

4 PNPM Peduli Executing Organization: ACE (Assoc for Community Empowerment)

– – – 0.99 – 0.05

5 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (RETF)

– – – – 1.25 0.69

6 Supporting Disabled People Organizations (DPOs) to Promote Inclusion within Indonesian Poverty Reduction Programs (BETF)

– – – – 0.55 0.84

7 PNPM Window 3 Phase I — PNPM Peduli (Capacity of Philantrophy) – – 4.00 – 1.77 1.84

8 PNPM Peduli Phase II — Additional Financing (RETF) – – – – – 15.95

9 PNPM Peduli Phase II — Additional Financing (BETF) – – – – – 0.70

10 PNPM Window 3 — PNPM Peduli Phase I – – 0.17 0.05 – –

166 | 2013 PSF PROGRESS REPORT

WINDOW FOUR:M&E AND SPECIAL STUDIES 2008 2009 2010 2011 2012 2013Approved Commitments 9.44 13.35 22.44 28.97 35.28 46.30

1 TA for PNPM Generasi — CCT 1.25 3.16 4.41 4.41 5.82 5.822 PNPM M&E, Special Studies (Incl. Infras Census for Ind villages) 5.00 5.00 6.56 9.66 9.66 14.413 PNPM Green/Renewable Energy (TA) 2.25 2.25 2.25 1.00 0.74 0.744 Micro Finance Development: PNPM Revolving Loan Fund (RLF) Cap.

Bldg.– – 4.21 8.89 8.89 8.89

5 National Community Empowerment Program In Urban Areas For 2012–2014 BETF for Technical Assistance

– – – – 0.96 0.96

6 Technical Assistant to KPDT – – – – 0.41 0.417 Increasing Accountability Capacity in PNPM — PNPM Justice

Services (BETF)– – – – 1.32 1.32

8 Increasing Accountability Capacity in PNPM — PNPM Justice Services (RETF)

– – – – 2.64 2.64

9 Legal Aid and Community Legal Empowerment (RETF) – – – – – 4.3610 Legal Aid and Community Legal Empowerment (BETF) – – – – – 1.9311 Local Government Capacity Development (Training of Loc Gov't) – – 1.43 1.43 1.43 1.4312 Delivering Services to Poor Community 0.94 0.94 0.94 0.94 0.77 0.7713 Poverty Engagement, Knowledge & Action Prog.(total $9,156,171) – 2.00 2.00 2.00 2.00 2.0014 ID Urban Pov Analysis, Program Review and Urban Evaluation – – 0.64 0.64 0.64 0.63Disbursements 0.92 3.70 8.71 16.26 21.78 26.87

1 TA for PNPM Generasi — CCT 0.62 1.77 2.80 3.11 3.90 4.682 PNPM M&E, Special Studies (Incl. Infras Census for Ind villages) 0.29 1.27 3.13 6.85 8.03 9.333 PNPM Green/Renewable Energy (TA) – 0.01 0.12 0.24 0.55 0.734 Micro Finance Development: PNPM Revolving Loan Fund (RLF) Cap.

Bldg.– – 0.32 1.97 4.27 6.75

5 National Community Empowerment Program In Urban Areas For 2012–2014 BETF for Technical Assistance

– – – – 0.09 0.26

6 Technical Assistant to KPDT – – – – 0.02 0.027 Increasing Accountability Capacity in PNPM — PNPM Justice

Services (BETF)– – – – – –

8 Increasing Accountability Capacity in PNPM — PNPM Justice Services (RETF)

– – – – – –

9 Legal Aid and Community Legal Empowerment (RETF) – – – – – –10 Legal Aid and Community Legal Empowerment (BETF) – – – – – –11 Local Government Capacity Development (Training of Loc Gov't) – – 0.00 0.95 1.54 1.7212 Delivering Services to Poor Community 0.00 0.30 0.59 0.76 0.77 0.7713 Poverty Engagement, Knowledge & Action Prog.(total $9,156,171) – 0.35 1.73 2.00 2.00 2.0014 ID Urban Pov Analysis, Program Review and Urban Evaluation – – 0.00 0.39 0.63 0.63Undisbursed Funds 8.53 9.65 13.73 12.71 13.50 19.43

1 TA for PNPM Generasi — CCT 0.63 1.39 1.60 1.30 1.92 1.142 PNPM M&E, Special Studies (Incl. Infras Census for Ind villages) 4.71 3.73 3.43 2.81 1.63 5.083 PNPM Green/Renewable Energy (TA) 2.25 2.24 2.13 0.76 0.19 0.004 Micro Finance Development: PNPM Revolving Loan Fund (RLF) Cap.

Bldg.– – 3.89 6.92 4.62 2.14

5 National Community Empowerment Program In Urban Areas For 2012–2014 BETF for Technical Assistance

– – – – 0.87 0.70

6 Technical Assistant to KPDT – – – – 0.40 0.407 Increasing Accountability Capacity in PNPM — PNPM Justice

Services (BETF)– – – – 1.32 1.32

8 Increasing Accountability Capacity in PNPM — PNPM Justice Services (RETF)

– – – – 2.64 2.64

9 Legal Aid and Community Legal Empowerment (RETF) – – – – – 4.3610 Legal Aid and Community Legal Empowerment (BETF) – – – – – 1.9311 Local Government Capacity Development (Training of Loc Gov't) – – 1.43 0.48 (0.11) (0.29)12 Delivering Services to Poor Community 0.94 0.64 0.35 0.19 – –13 Poverty Engagement, Knowledge & Action Prog.(total $9,156,171) – 1.65 0.27 0.00 (0.00) –14 ID Urban Pov Analysis, Program Review and Urban Evaluation – – 0.64 0.25 0.01 –

ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009–2012 AND IN 2013 | 167

Evaluations/Studies Methodology Main Findings

1 PNPM Rural Impact Evaluation2007: http://pnpm–support.org/data/pdf/pnpm–evaluations/2008/PNPMRuralBaselineReport.pdf

2010: http://psflibrary.org/catalog/repository/PNPM+IE+Final+REVISED%20done.pdf

Quantitative (propensity score matching); baseline 2007; end line 2010

• Real per capita consumption gains of 9.1 percent for households in PNPM Rural areas.

• The gains were higher for poor households and poor sub–districts (11.8 percent and 12.7 percent respectively);

• Households in PNPM areas were 2.1 percent more likely to move out of poverty.

• Access to health services increased 5.1 percent for households in PNPM areas.

2 PNPM Rural Qualitative Impact Evaluation2007: http://psflibrary.org/catalog/repository/Kecamatan%20development%20program%20qualitative%20impact%20evaluation.pdf

2010: http://pnpm–support.org/sites/default/files/Impact_PNPM%20Rural_Qualitative%20Study_2010.pdf

Qualitative, multi–years (2007 and 2010)

• Participation, transparency and accountability were strong within the program, especially at the sub–district and village levels.

• PNPM Rural is most effective at reducing poverty and impacting poor households when the needs of the poor are aligned with those of the community.

3 PNPM Rural Marginalized Groups Study http://psflibrary.org/catalog/repository/PNPM%20Marginalized_english.pdf

Qualitative (2010) • Marginalized groups have limited participation in PNPM Rural meetings, which are still dominated by elites and interest groups.

• Although facilitation/project procedures have often led to increased participation rates, it has not encouraged active or influential participation by marginalized groups in the development of proposals.

• Officials and leaders of interest groups (religious and traditional elites) still possess the greatest influence over which proposals are developed and selected, therefore reducing opportunities for marginalized groups to impact decision–making on the use of project resources.

4 Village Capacity in Maintaining Infrastructure Study: Evidence from Rural Indonesiahttp://pnpm–support.org/data/pdf/pnpm–evaluations/2010/VRRI_English_FINAL.pdf

Quantitative (repeated surveys every quarter in a year to capture cyclical income fluctuation, 2010)

• Many communities still found it difficult to maintain existing infrastructure projects.

• The cost of maintaining infrastructure was up to 2.8 percent of a household’s total consumption — although small, this is likely burdensome for poor households.

• Although villagers are willing to pay for the maintenance of infrastructure, the amount communities are willing to pay does not cover all infrastructure maintenance needs.

• The community’s willingness to pay is strongly influenced by the direct impact of the infrastructure on individual households and institutional responsiveness in terms of complaint handling.

5 PNPM Generasi Impact Evaluation2007: http://pnpm–support.org/data/pdf/pnpm–evaluations/2008/Conditionalcash transferinIndonesia PKHandPNPMgenerasi.pdf

2010: http://psflibrary.org/catalog/repository/PNPM%20Generasi%20Final%20Impact%20Evaluation%20Report%202011.pdf

Quantitative (randomized control trial, baseline 2007, end line 2010)

• Statistically significant positive impact on average across all 12 indicators that Generasi was designed to address.

• The strongest improvements among the health indicators were in the frequency of weight checks for young children.

• The improvement in education indicators was most notable in the increased school participation rate among the primary school–age group.

• In terms of long–term impact, there was about 10 percent decrease in malnutrition compared with control areas.

ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009–2012 AND IN 2013

Table 6. Completed Evaluations/Studies from 2009–2012

168 | 2013 PSF PROGRESS REPORT

Evaluations/Studies Methodology Main Findings

6 PNPM Generasi Qualitative Evaluationhttp://pnpm–support.org/data/pdf/pnpm–evaluations/2008/Qualitativebaselinestudyfor PNPMGenerasiandPKH.pdf

http://pnpm–support.org/sites/default/files/ PNPMGenerasiQualitative ImpactEvaluation%20(1).pdf

Qualitative, multi–years (2007, 2010)

• Communities, village elite, and service providers considered PNPM Generasi more beneficial to maternal child health (MCH) and basic education than other programs — it offered wide variety of aid, accessible to almost everyone, and could complement other existing programs.

• PNPM Generasi contributed to increased utilization of MCH services through subsidized costs for delivery, transport for pre– and post–natal checks, supplementary foods, and transport to visit health posts.

• PNPM Generasi also contributed to a lower level of school dropouts and absenteeism at primary/junior high through provision of various supports (uniform, transport, school equipment, etc.) to lessen the economic burden of the parents.

7 PNPM RESPEK Infrastructure and Community Organization Capacity Evaluationhttp://pnpm–support.org/sites/all/sites/default/ files/Final%20Respek_edit%20done.pdf

Mixed–methods (2011)

• All infrastructure samples evaluated are of good to moderate quality — a significant achievement, considering huge implementation challenges in Papua and West Papua;

• 67 percent of the infrastructure built was utilized by the community;

• PNPM RESPEK improved administrative capacity of local facilitators but not the facilitation capability.

8 Impact Evaluation Baseline Reporthttp://psflibrary.org/catalog/repository/3715_PEKKA%20Impact%20Evaluation,%20Baseline%20Report.pdf

Quantitative (2011) • Female headed households (HH) have lower subjective welfare, bleaker view of their future, and negative mental state.

• No differences between female and male headed HHs in terms of per capita expenditure, access to financial services and government social assistance, and assets.

• Female–headed households have lower per capita income but the differences disappear after controlling for age and education. This difference persists for the poorest sub–population.

9 Perception of Local Governance Studyhttp://psflibrary.org/catalog/repository/Governance%20Review%20of%20PNPM%20Rural%202012.pdf

Qualitative (2010) • Local governments generally perceived PNPM (Rural and Urban) as programs with very high participation rate, better transparency and stronger accountability mechanism compared to other programs.

• Participation is the principle that is most readily adopted by local governments for their own programs. Transparency and accountability, however, are not yet being adopted by most local governments.

• Most respondents believed that to improve the sustainability and long–term impact of PNPM on poverty reduction, the programs should focus on building the capacity of the community through training, education and mentoring.

10 Rapid Assessment of Women’s Participation in PNPM http://pnpm–support.org/sites/default/files/PNPM%20Womens%20Participation_2012_English_FINAL%20SUBMITTED.pdf

Qualitative (2012) • Quality of women’s participation was mixed in study areas and is still not maximized.

• Women’s involvement in the project cycle is still low beyond the initial project stages of socialization and needs assessment.

• Women’s proposals that are funded are usually infrastructure, rather than capacity building and trainings that are requested when the local actors do a more in–depth analysis of women’s needs.

• Local initiatives and strategies around women’s participation existed but have yet to be integrated into more general local decision making processes.

ANNEX THREE: SUMMARIES OF MAJOR ANALYTICAL WORK CONDUCTED IN 2009–2012 AND IN 2013 | 169

Evaluations/Studies Methodology Main Findings

11 Local Level Governance Review

Qualitative/Action Research (2012)

• The state of local governance in PNPM is mixed: it is still remarkably strong, but faces problems.

• Participation rates are still mostly high, but the quality of participation has declined in some places.

• There are weaknesses in transparency and information sharing: performance of accountability mechanisms in the program varies and the incidence of serious corruption is up;

• Despite this, the foundations of PNPM are still strong. These foundations, though, are being eroded by serious pressure from higher–up problems related to the broader governance environment, changes in the program design, and problems with implementation and management.

• PNPM must address these program design, implementation and management issues to avoid undoing its years of good work at the community level.

12 Rate of Return Analysis (EIRR) of PNPM Rural Infrastructure Sub–Projectshttp://pnpm–support.org/sites/default/files/Final%20Report–%20Small%20Scale%20Study–PNPM.pdf

Quantitative (economic analysis), small scale study in 20 villages assessing 48 sub–projects using similar methodology as in 2005 exercise

• Similar to the 2005 results (Torrens, 2005), the EIRR varied among sub–projects with median value of 30–50 percent;

• The average general income multiplier is 1.3.• Sub–projects are generally 25–30 percent cheaper than

projects built using typical local government contractors.

13 Village Infrastructure Censushttp://psflibrary.org/catalog/repository/PODES%20Infrastructure%20Census%202011.pdf

Quantitative (village level census) — piggybacking PODES 2011

• Comprehensive data on basic infrastructure availability and quality (including health and education facilities) in nearly all urban and rural villages in Indonesia (over 76,000 villages).

• A consistent picture of geographic variation in the supply of basic infrastructure across Indonesia. In general, provinces on the island of Java and the province of Bali perform best, while local needs for investment still exist in these regions, particularly in the provinces of West Java and Banten.

• The largest gaps in infrastructure supply readiness are found in the Papua region, the Maluku islands, NTT, and in the interior of Kalimantan.

• Data has been used to create a supply readiness index for health and education (to support PNPM Generasi in location selection/targeting).

• Further analysis will be conducted to calculate financing gaps (pending data availability on costs) and to provide more information for PNPM Rural in terms of location selection and allocation of block–grants.

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Table 7. Completed Studies/Evaluations in 2013

Evaluations/Studies Methodology Main Findings

1 Local Level Institutions 3 (LLI3)http://psflibrary.org/catalog/repository/30.%20LLI3Study–OverviewReportFINAL–small.pdf

Mixed–methods (longitudinal study, 1st one in 1996 and the 2nd in 2001); 40 villages in 3 provinces for HH survey, 20 villages for qualitative methods

• A decade after the last round of LLI, almost half of the villages studied maintained the same local capacity (defined as ability to solve common problems collectively), about a third experienced decline in capacity, and a quarter saw their capacity improved.

• Assessed in terms of assets, local political economy, and sources of capacity shifts (capturing patterns of cooperation between actors), a decline in capacity was mostly caused by deteriorating access to natural resources, nascent signs of reduced reciprocity, and unresponsive village leaders who did not work in villagers’ interest.

• On the other hand, an increase in capacity was mostly due to villagers’ own efforts to improve their livelihoods, increase control over natural resources, and sustain mechanisms to ensure that village leaders were oriented towards solving collective problems. Reformist officials and external actors like NGOs also contributed to increased problem–solving capacity.

• More village heads are responsive to villagers’ interests; however, strengthening the capacity of the village head does not translate directly to strengthened local capacity. Additional accountability mechanisms are needed to engender synergies between the two.

2 Integration of Community–based Poverty Reduction Programs at Community Level

Qualitative, 18 villages in 3 provinces

• Proliferation of programs is largely considered to be beneficial for villagers, in terms of: the availability of additional facilities, the improved quality of public services, improved access (transport) and increased incomes, evenly distributed development, the availability of capital and business opportunities, and improved community and village government capacities.

• Integration between empowerment programs is generally not done systematically, usually taking the form of sporadic initiatives to synthesize programs with the same targets and beneficiaries to avoid overlaps. There are no initiatives at the district level that encourage actors in the village to form program implementing institutions at the village level.

• A common mode of empowerment program integration in the sample villages is limited to having one development plan per village. In this way, empowerment programs no longer have their own development plans in the villages and follow the plan produced at the village development planning meeting.

• Factors enabling empowerment program integration are: program design that is directed towards integration and follows the form in program technical operating procedures that are then communicated to all stakeholders; having regulations and institutions/forums that promote and facilitate the integration or collaboration between programs; having initiatives to build the quality of village medium term development plans; having a district head and village heads who understand — and are committed to — integration; having civil society groups (NGOs and community leaders in the village) who have knowledge of — and commitment to — improving the effectiveness of village development planning and implementation of empowerment programs; and having the commitment of national and local government.

3 Community Groups Study

Qualitative, 6 villages/urban wards in 5 provinces

• Community groups performed well within PNPM Rural and Urban programs, but almost no spill–over effects of PNPM principles and processes were detected outside PNPM, both at village and sub–district levels (PNPM is seen as merely project).

• Community’s experience of participating in PNPM did not foster collective awareness to demand their government (particularly village government) to do the same despite the benefits felt from PNPM.

• At the village level, power is often concentrated at the hand of village head and a few elites who dominated PNPM activities (although often with a benevolent intent). This power is not checked and balanced by other institutions (e.g. BPD) to serve as control mechanisms.

• Facilitation, although key to empowerment program, is still weak and does not bridge the gap between elites and community in general. Facilitators are often too busy with administrative duties and do not have time to engage with community members.

Kementerian PPN/BappenasKEMENTERIAN KOORDINATOR

BIDANG KESEJAHTERAAN RAKYATREPUBLIK INDONESIA

KEMENTERIAN KOORDINATORBIDANG KESEJAHTERAAN RAKYAT

REPUBLIK INDONESIA

2013 PSF PROGRESS REPORT

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