NATIONAL PROGRAM FOR COMMUNITY EMPOWERMENT (PNPM MANDIRI)

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NATIONAL PROGRAM FORCOMMUNITY EMPOWERMENT (PNPM
MANDIRI)

• Indonesias CDD Response to Rural Poverty

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Indonesia
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Background

• Modeled on 2 former government programs
• Kecamatan Development Program (KDP/PPK)
• Urban Poverty Planning (UPP/P2KP).

Objectives

• To Reduce Poverty, by
• Providing cost-effective socio-economic
  infrastructure and access to basic services
• Improving local governance capacity
• Strengthening local institutions
• Increasing local employment opportunities
• Empowering communities

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Indonesias population
The biggest poor population are living in
Java-Bali (57). 25 in the Western regions, and
17 in the Eastern regions (the most lagging
regions). In total there are 36 million poor
population
Source CPS Change Team
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Indonesias economy
Source CPS Change Team. Provincials size shows
the proportion of provincial GDP relative to
national GDP
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CDD in Indonesia

• Villagers plan and decide on investments, control
  funds, implement the projects themselves,
  account for funds, and maintain facilities/
  infrastructure built.

With facilitation and technical backstopping
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Poverty Program Clusters
Sourcepnpm-mandiri website
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Key Principles

• Decentralized
• Pro-poor
• Participatory
• Transparent and Accountable
• Sustainable
• Simple
• Open Menu (with allocations based on
  prioritization of proposals decided on by village
  representatives)

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From Village Proposals to Funding Decisions
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Approx. Funding (in US million, approx.)
PROGRAM LOAN GRANT
KDP I 273.2
KDP II 344.3 70.8
PNPM 2007 381.9 121.7
PNPM 2008 226.1 121.7
PNPM 2009 300 121.7
PNPM 2010 785
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How Funds are Channeled and Disbursed

• Transferred by KPPN (Govt Treasury Office) to
  village collective accounts at the kecamatan
  level.
• Villagers then use these grant funds for
  productive infrastructure, loans to existing
  womens groups for working capital, or for social
  investments in education and health.

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Replenishement
Withdrawal request financial statement
3 stages 40-40-20
UPK
Expenditure progress report
Work plan progress based
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MANAGEMENT STRUCTURE OF PNPM MANDIRI RURAL
Coord. Ministry of Peoples Welfare
Bappenas
MoHA, DG-PMD
Project Management (Satker)
TKPK TK-PNPM Mandiri
National Management Consultant
CENTRAL
Governor
Provincial Oversight Consultant
TKPKD Propinsi TK-PNPM Prov.
PROVINCE
Bupati/ Mayor
Kabupaten Facilitators
TKPKD Kab. TK-PNPM Kab.
REGENCY/ MUNCIPAL
CAMAT
Inter Village Meeting (MAD)
KECAMATAN (Govt Admin Unit)
Ops Staff
Kecamatan Fasilitator
Facilitator Local (PL)
Unit Pengelola Kegiatan (UPK)
Village Head
Village Cadres
Village Meeting
Village Impl Unit
Monitoring teams
VILLAGE
Community (Groups)
Supervision/ Oversight
Reporting Lines
Coordination
Supervision and Tech Assistance
Facilitation
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Program Staffing of PNPM Rural
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Results
Between 1999 2007, villagers built or
rehabilitated over

• 65,500 km of roads
• 9,000 bridges
• 11,000 irrigations systems
• 28,300 drinking water systems and almost 17,500
  sanitation facilities (MCK)
• 6,950 schools (and provided almost 120,000
  scholarships to poor students)
• 5,700 health posts

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Impacts of PNPM Rural have been positive

• Household welfare
• Increase in consumption per capita 5 greater in
  PNPM locations compared with control.
• The same impact is 5 impact among poorest 20
  households.
• Impact increases to 19 in the poorest 20 of
  kecamatan.
• Households moved out of poverty (2.3 more likely
  than control areas) and reduction in risk of
  households falling into poverty.

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Impacts of PNPM Rural (cont.)

• Employment Generation
• 1-2 greater chance of escaping unemployment.
• Unemployment already very low (lt4).
• Provides temporary jobs during slack season for
  agricultural laborers and the poor (gt72 million
  person-days for gt6.1 million villagers)

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Impacts of PNPM Rural

• Physical Economic Infrastructure
• Creates greater access to markets and services
  (roads) and increases productivity (irrigation)
• Improves access to and quality of health and
  education services (health centers, schools)
• Strong impact on expansion of access to health
  services (5 more than control areas)
• Proven Track Record of Low Misuse of Funds (lt 1)

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Impact

• Participation of women and poor is generally high
  (about 45)
• Poverty targeting is successful (Alatas, 2005)
• Rural PNPM forums reduce conflict (Barron)
• Rated beneficial--as expected or better 92
• Satisfied with results 96
• Infrastructure fully functional (years after
  construction) 94
• No serious environmental impact or safeguards
  issues
• Rural PNPM construction costs are 30 56 less
  than alternative means (ie. construction by
  contractors)

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Aceh
The Using KDP/PNPM Rural As Vehicle for Other
Funds
For example

1. KDP-IOM, IDR 50 million per village for 230
   villages and 350 villages in conflict-affected
   areas in Aceh
2. KDP-BRA, to channel funds to conflict victims in
   67 sub-districts (IDR 217.38 billion)
3. KDP-BRR, to built infrastructure for community
   settlements in 72 sub-districts (IDR 116.274
   billion)

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Aceh
The Using KDP/PNPM Rural As vehicle for Other
Funds
For example

1. CARE, to built sanitation in Peukan Bada
   Sub-district, Aceh Besar
2. AUSAid, development Meunasah Village Halls in
   108 villages in 8 sub-districts, Aceh Besar
3. Village Surveys, 2005/2006, surveyed more than
   5,900 villages to identify damages and changes
   post-tsunami and -conflict

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Aceh
PNPM-BKPGintegration of community development
programs
In 2009 Aceh allocated gt Rp. 962 billion for
block grant investment funds to every village and
linked its funds to PNPM Rural. Acehs BKPG also
links musrenbang planning to more transparent
participatory BKPG PNPM community planning, as
shown below
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Infrastructure
Infrastructure Project Bridge at Siwalubanua
Village
Suspension Bridges
Pati-iron bridge
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Infrastructure
Road in Central Java
Subak Road, Tabanan, Bali
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SCHOOL
TK (Kindergaten ) in Magetan
Exterior of a School (and KDP Notice Board) in
Kairatu
Irrigation channel at Lamatewelu , Kec. Adonara
Timur, Kab. Flores Timur, NTT
Clean Water Project at Pengotan, Kec. Bangli,
Bali
Women actively participating in building a road
in Garut
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SAVING LOANS
SPP beneficiary shows her fish crackers, Parit
Baru, Selakau, Sambas, Kalbar
First Loan Disbursement at Cikeusal
New Polindes in Magetan
Socialization in a kecamatan
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Challenges/Issues

• The delay of DIPAs every year (mutli-year
  budgeting, carry-over, PMK 168 rules, etc.)
• Technical Assistance (too little training, too
  late and too many empty TA positions)
• Better inter-sectoral support coordination
  needed going forward
• Intensive routine supervision required
• Better pro-poor targetingmore grant funds to
  poor, remote areas

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Recommendations

• PNPM can serve as an effective vehicle to build
  village infrastructure, provide employment
  opportunities, reduce poverty and help provide a
  safety net in times of crisis
• The architecture and program machinery in place
  process familiar (facilitators trained and in
  place)
• Poverty-targeted (larger block grants for poor
  kecamatan)
• The funds provided proven to result in
  cost-efficient village infrastructure local
  employment opportunities, reducing poverty in
  poor areas.