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Possible Cooperation with OIC
Pungky Sumadi Director of Social Protection and WelfareNational Development Planning Agency
Republic of Indonesia
First Meeting of the Development and Cooperation Institutions (DCIs) of the OIC Member States
Istanbul13-14 May, 2009
Poverty: Definition and Some Indicators. Macro Economic Management and Poverty
Reduction Strategy. Program Nasional Pemberdayaan Masyarakat
(PNPM) / National Community Empowerment Program.
Program Keluarga Harapan (Household Conditional Cash Transfer / CCT.)
PNPM Generasi Sehat dan Cerdas (Community CCT.)
Possible Cooperation
Presentation Outline
Poverty: Definition and Some Indicators. Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat
(PNPM) / National Community Empowerment Program.
Program Keluarga Harapan (Household CCT.) PNPM Generasi Sehat dan Cerdas (Community
CCT.)
Presentation Outline
PRSP: Those who are not able to meet one of the following basic rights: food, job, education, health, land, shelter, water and sanitation, natural resources management and environment, security and participation.
2008 poverty line: Income is less than Rp. 183.000,-/person/month (PPP USD 1.62)
Learning from past experience, the Government cannot alleviate poverty by itself. The poor community has to be in the driver’s seat.
Definition of Poverty
Poverty Trend in Indonesia: 1976-2008
54.2
47.2
42.3 40.6
35.0
30.027.2 25.9
22.5
34.0
49.5 48.0
38.7 37.9 38.4 37.3 36.1 35.139.3
37.235.0
40.1
33.328.6
26.9
21.617.4
15.113.7
11.3
17.5
24.223.4
19.1 18.4 18.2 17.4 16.7 16.0 17.8
16.6
15.4
0
10
20
30
40
50
60
1976 1978 1980 1981 1984 1987 1990 1993 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Number of Poor Population Total Number of Poor Population
Percentage of Poor Population Percentage of Poor Population
12 Years12 Years
Note: A revision has been made in method in 1998, encompassing the expansion of commodities coverage and inter-regional comparability.
The Total Number of Poor Population is Still High
5
29,30%29,30%
52,32%52,32%
21,21%21,21%
43,86%43,86%
7,86%7,86%
20,76%20,76%
9,29%9,29%
27,89%27,89%
Non-poor Poor
Household without access to safe waterHousehold without access to safe water
Household without access to sanitationHousehold without access to sanitation
Household with children aged 12-15 not Household with children aged 12-15 not enrolled in junior high schoolenrolled in junior high school
Household with birth attended by traditional Household with birth attended by traditional paramedicsparamedics
0%0% 10%10% 20%20% 30%30% 40%40% 50%50% 60%60%
Source: SUSENAS 2002, BPS
Some Other Indicators
Household w/o access to sanitation
School < poverty Poorest Richest
Participation line Q1 Q2 Q3 Q4 Q5 Total
Age 7-12 years
Attending School 5.409.470 6.417.181 5.869.866 5.359.679 4.821.673 3.908.571 26.376.970
Not at school 347.482 406.862 192.052 144.900 86.675 50.711 881.200
Never 216.157 249.165 108.110 84.951 49.139 29.143 520.508
Drop out 131.325 157.697 83.942 59.949 37.536 21.568 360.692
TOTAL 5.756.952 6.824.043 6.061.918 5.504.579 4.908.348 3.959.282 27.258.170
Age 13-15 years
Attending School 1.803.155 2.139.783 2.264.164 2.227.993 2.150.977 1.851.319 10.634.236
Not at school 707.504 880.677 552.856 348.869 213.919 106.176 2.102.497
Never 42.040 48.943 20.529 11.105 9.082 6.331 95.990
Drop out 665.464 831.734 532.327 337.764 204.837 99.845 2.006.507
TOTAL 2.510.659 3.020.460 2.817.020 2.576.862 2.364.896 1.957.495 12.736.733
Age 16-18 years
Attending School 790.264 859.483 1.101.313 1.372.766 1.587.247 1.768.792 6.689.601
Not at school 1.443.661 1.765.429 1.481.937 1.151.898 863.661 556.874 5.819.799
Never 48.534 54.801 19.283 18.510 10.145 9.342 112.081
Drop out 1.395.127 1.710.628 1.462.654 1.133.388 853.516 547.532 5.707.718
TOTAL 2.233.925 2.679.713 2.602.533 2.543.174 2.461.053 2.335.008 12.621.481
Source: calculated based on BPS, SUSENAS 2004;Source: calculated based on BPS, SUSENAS 2004;Note: Q1= is the poorest quintile; Q5= is the richest quintile.Note: Q1= is the poorest quintile; Q5= is the richest quintile.
School Participation by Income Classification
Several Poverty Indicators, per Region, 2005
0
10
20
30
40
50
60
Illitera
cy R
ate
Birth
Deliv
ery
by
Tra
ditio
nal
Pers
ons
Without C
lean
Wate
r
Without
Sanitation
Illness R
ate
Unem
plo
ym
ent
Rate
Not R
eachin
g
the A
ge o
f 40
Infa
nts
that
Suffer
Maln
utritio
n
Sumatera Jawa-Bali KalimantanSulawesi NT-Maluku-Papua NasionalSource: BPS, 2005
%
8
The Poor Population are Scattered and not Evenly Isolated (2008)
5 million: East Java, Central Java, and West Java5 million: East Java, Central Java, and West Java
1-2 million: North Sumatera, South Sumatera, Lampung, NAD (Aceh), West Nusatenggara, East Nusatenggara, South Sulawesi1-2 million: North Sumatera, South Sumatera, Lampung, NAD (Aceh), West Nusatenggara, East Nusatenggara, South Sulawesi
500 thousand – 1 million: Papua, South East Sulawesi, West Kalimantan, Banten, DIY (Yogyakarta), Riau, West Sumatera.500 thousand – 1 million: Papua, South East Sulawesi, West Kalimantan, Banten, DIY (Yogyakarta), Riau, West Sumatera.
57 percent of the poor population is concentrated in Java
9
Poverty: Definition and Some Indicators. Macro Economic Management and
Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat
(PNPM) / National Community Empowerment Program.
Program Keluarga Harapan (Household CCT.) PNPM Generasi Sehat dan Cerdas (Community
CCT.)
Presentation Outline
Economic growth and
stability
Employ-ment oppor-
tunity
Povertyreduction
Improved SocialWelfare
Fulfillment ofBasic Needs
Programs
Dev’t of SocialProtection
Program
HarmonizationOf Comm.
Emp. ProgramsPNPM:•Comm infrastructure•Comm productive activities.•Env. Improvement.•HRD
• Fiscal-monatery policy
• Infrastructure programs
• Investment im-prov’t programs
• Improv’t of fiscalpolicies.
• Energy accel’tionprog
• Spec Ec. zoning• Micro credit prog.
(KUR)
• Price stabilization program (rice, etc.)
• Health.• Education• Basic services & infra
CCTs, UCT, Old age, Disabled
Labor improv’t Programs (migrantWorkers, training
Facilities, etc.)
Macro Ec. Mgt and Poverty Reduction Strategies in 2009
Poverty: Definition and Some Indicators. Macro Economic Management and Poverty
Reduction Strategy. National Program on Community
Empowerment/(PNPM). Program Keluarga Harapan (Household
Conditional Cash Transfer / CCT.) PNPM Generasi Sehat dan Cerdas (Community
CCT.)
Presentation Outline
National Program on Community Empowerment (PNPM)
Definition PNPM is a program that places poor communities as the
driver in the decision making process of local development.
Component Community facilitation. Block grant (USD 163,000/sub-district/yr). Local government facilitation.
Coverage and Budget Coverage 2009: All urban and rural sub-districts in the
country (more than 6408.) Budget 2009: USD 1.2 billion.
3. Poverty Reflection:• Pov. Identification.• Conceptualizing poverty.• Identify cause of pov.• Identify potential to overcome problems.
2. Comm. Meeting:• Developing sense of comm.• Democratizing comm.• Awareness of self existense.
1. Socialization to Community:• Social mapping• Program socialization
8. Beneficiaries:• Community groups (esp. the poor)
6. Plan Development:• Identification & prioritization.• Development of programs and activities.• Discussion with service provider (community CCT.)
5. Community Organizing:Establish functional comm. institutionthrough democratic and value based approach.
7. Execution of Activities:• Establish smaller groups of beneficiaries. • Establish common ‘space’ to independently solve problems.
4. Comm. Self Mapping:• Conceptualizing needs and local potentials.• Problem solving.
PNPM - Community Empowerment ProcessPNPM Community Empowerment Process
Educa
tion
Health
Agriculture
Fish
erie
sFore
stry
Infr
ast
ructu
reEtcetra
Main PNPM Programs Consist of:
• KDP (rural.)• UPP (urban.)• RISE (fast growing rural districts.)• SPADA (disadvantage / special areas.)
PNPM components: • Open menu community grants.• Comm. facilitatiion, technical supervision,
training and local gov’t empowerment facilities.
PNPM support programs All sectoral programs (including legal sector.)
PNPM support components:• Sectoral community grants.• Sectoral / technical facilitators.
Legal G
en
der
Harmonization of Community Empowerment Program within PNPM
Harmonization at National Level
Coordination among ministries is still a problem.
Among donor is even easier PNPM Support Facility.
Improve everything related to tap international financial resources (budgeting, procurement, reporting/accounting) and make better use of them.
Natural Disaster Management and Mitigation
Indonesia is in the natural disaster prone area.
Community (with empowerment approach) was able to build approximately 70,000 houses in Aceh and more than 220,000 houses in Yogyakarta in one year.
Coordination has been the ghost of development – do it well!
Poverty: Definition and Some Indicators. Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat
(PNPM). Program Keluarga Harapan (Household
Conditional Cash Transfer.) PNPM Generasi Sehat dan Cerdas (Community
CCT.)
Presentation Outline
Health and Nutrition:To improve access of the
poor to basic health care (especially for children and expecting and lactating women).
To improve nutrition condition of the poor children.
Health and Nutrition:To improve access of the
poor to basic health care (especially for children and expecting and lactating women).
To improve nutrition condition of the poor children.
Education:To improve net enrollment
in elementary and junior secondary school for the poor children.
Target group especially for the children who are outside the school system.
Education:To improve net enrollment
in elementary and junior secondary school for the poor children.
Target group especially for the children who are outside the school system.
In the long run: •Improve quality of human resources
•Break poverty chain
ObjectivesObjectives
A replacement for the Unconditional Cash Transfer (Beneficiaries: 19,1 million household.) Poor data quality.
Pilot in 348 subdistricts in 7 provinces in 2005. Design: more or less similar to Mexico’s
Oportunidades. Implementing Agency: Ministry of Social Affairs
(central) and local governments, in coordination with Health, Education, Pos Indonesia (payment), KOMINFO (socialization) and Central Statistics Agency (data.)
Program Keluarga Harapan (Household CCT)
Targeting mechanism: geographical and Proxy Means Testing methods.
2007 Budget: Originally USD 450 million, covering 1 million household, split into demand side (USD 125 million) and the rest was for supply side (mainly education.)
Target beneficiaries: Originally 500.000 households (+/- 2 million people.) Actual: 392.000 households (1.28 million people.)
Actual used of 2007 budget: USD 67 million (due to 15% budget cut and reduced # of beneficiaries.)
2009: USD 100 million for 720,000 households.
Program Keluarga Harapan (Household CCT)Program Keluarga Harapan (Household CCT)
Benefit: Fixed assistance/family: $21.50/year. Health: $86/year for expecting/lactating woman
and children under 5. Education: $43/year for elementary school and $
86/year for junior high. Evaluation design:
Baseline survey. Rapid assessment (what’s wrong with the design.) 2 yearly evaluation.
Program Keluarga Harapan (Household CCT)Program Keluarga Harapan (Household CCT)
Poverty: Definition and Some Indicators. Poverty Reduction Strategy. Program Nasional Pemberdayaan Masyarakat
(PNPM). Program Keluarga Harapan (Household
Conditional Cash Transfer / CCT.) PNPM Generasi Sehat dan Cerdas
(Community CCT.)
Presentation Outline
Definition: A community-based CCT. Household CCT conditionalities apply, but benefit goes to community to decide.
Coverage and Budget: 129 sub-districts (1625 villages = 1,1 million people)
treatment and 129 sub-districts control. No overlaps with household CCT.
Budget USD 6 million for 2 years.
Benefit: USD 8700/village/yr.
Duration of pilot activities: 2007 - 2009.
PNPM GENERASI SEHAT DAN CERDAS(Community CCT)
Health Indicators: Expecting mothers: At least 4 times check ups and
receive iron tablets. Delivery assisted by medical professionals. Post natal care (incl. the new born child.) 0-59 month child: routine check up, receive vitamin
A.
Education Indicators: Students 6 – 15 yrs are enrolled in schools with at
least 85% attendance.
How Does the Project Achieve Its Objectives?
Health: Public awareness. Food supplement. Transport cost for mothers
and midwifes. Subsidy / savings for
deliveries. Equipment for health
centers. Improve local
infrastructure of health centers.
How Do They Use the Money?
Education: School uniforms, books,
shoes for students. Transport cost. Bikes for junior high
students. Remuneration for
voluntary teachers. Improvement / building
additional classrooms. Improvement of school
related infrastructure.
South-South cooperation and exchange of experience in macro economic management—including experience in handling current global crisis—and community empowerment approach in poverty reduction, and natural disaster management / mitigation.
Training and capacity building programs in monitoring and evaluation of the above subjects.
Statistical cooperation in MDG monitoring indicators, poverty targeting (especially at individual levels.)
For Indonesia: reduce traditional western-controlled sources of funds and mobilize new resources from OIC members countries.
Jakarta Commitment: Bringing donor community to be in line with Indonesia’s development agenda and improving aid effectiveness.
Possible Cooperation
TERIMA KASIH