Possible Cooperation with OIC Pungky Sumadi Director of

Possible Cooperation with OIC Pungky Sumadi Director of Social Protection and Welfare National Development Planning Agency Republic of Indonesia First Meeting of the Development and Cooperation Institutions (DCIs) of the OIC Member States Istanbul 13 -14 May, 2009

Presentation Outline Poverty: Definition and Some Indicators. p Macro Economic Management and Poverty Reduction Strategy. p Program Nasional Pemberdayaan Masyarakat (PNPM) / National Community Empowerment Program. p Program Keluarga Harapan (Household Conditional Cash Transfer / CCT. ) p PNPM Generasi Sehat dan Cerdas (Community CCT. ) p Possible Cooperation p

Presentation Outline Poverty: Definition and Some Indicators. p Poverty Reduction Strategy. p Program Nasional Pemberdayaan Masyarakat (PNPM) / National Community Empowerment Program. p Program Keluarga Harapan (Household CCT. ) p PNPM Generasi Sehat dan Cerdas (Community CCT. ) p

Definition of Poverty p 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. p 2008 poverty line: Income is less than Rp. 183. 000, /person/month (PPP USD 1. 62) p Learning from past experience, the Government cannot alleviate poverty by itself. The poor community has to be in the driver’s seat.

The Total Number of Poor Population is Still High Poverty Trend in Indonesia: 1976 -2008 12 Years Note: A revision has been made in method in 1998, encompassing the expansion of commodities coverage and interregional comparability. 5

Some Other Indicators 29, 30% Household without access to safe water 52, 32% 21, 21% Household w/o without access to sanitation Household with children aged 12 -15 not enrolled in junior high school Household with birth attended by traditional paramedics 43, 86% 7, 86% 20, 76% 9, 29% 27, 89% 0% Source: SUSENAS 2002, BPS 10% Non-poor 20% Poor 30% 40% 50% 60%

School Participation by Income Classification School < poverty Participation line Poorest Richest Q 1 Q 2 Q 3 Q 4 Q 5 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 5. 756. 952 6. 824. 043 6. 061. 918 5. 504. 579 4. 908. 348 3. 959. 282 27. 258. 170 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 2. 510. 659 3. 020. 460 2. 817. 020 2. 576. 862 2. 364. 896 1. 957. 495 12. 736. 733 790. 264 859. 483 1. 101. 313 1. 372. 766 1. 587. 247 1. 768. 792 6. 689. 601 1. 443. 661 1. 765. 429 1. 481. 937 1. 151. 898 863. 661 556. 874 5. 819. 799 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 TOTAL Age 13 -15 years Attending School TOTAL Age 16 -18 years Attending School Not at school Never Source: calculated based on BPS, SUSENAS 2004; Note: Q 1= is the poorest quintile; Q 5= is the richest quintile.

Several Poverty Indicators, per Region, 2005 % Source: BPS, 2005 8

The Poor Population are Scattered and not Evenly Isolated (2008) 57 percent of the poor population is concentrated in Java Ø 5 million: East Java, Central Java, and West Java Ø 1 -2 million: North Sumatera, South Sumatera, Lampung, NAD (Aceh), West Nusatenggara, East Nusatenggara, South Sulawesi Ø 500 thousand – 1 million: Papua, South East Sulawesi, West Kalimantan, Banten, DIY (Yogyakarta), Riau, West Sumatera. 9

Presentation Outline Poverty: Definition and Some Indicators. p Macro Economic Management and Poverty Reduction Strategy. p Program Nasional Pemberdayaan Masyarakat (PNPM) / National Community Empowerment Program. p Program Keluarga Harapan (Household CCT. ) p PNPM Generasi Sehat dan Cerdas (Community CCT. ) p

Macro Ec. Mgt and Poverty Reduction Strategies in 2009 Labor improv’t Programs (migrant Workers, training Facilities, etc. ) • Fiscal-monatery policy • Infrastructure programs • Investment improv’t programs • Improv’t of fiscal policies. • Energy accel’tion prog • Spec Ec. zoning • Micro credit prog. (KUR) • Price stabilization program (rice, etc. ) • Health. • Education • Basic services & infra Employment opportunity Improved Social Welfare Economic growth and stability Poverty reduction Fulfillment of Basic Needs Programs Dev’t of Social Protection Program CCTs, UCT, Old age, Disabled Harmonization Of Comm. Emp. Programs PNPM: • Comm infrastructure • Comm productive activities. • Env. Improvement. • HRD

Presentation Outline Poverty: Definition and Some Indicators. p Macro Economic Management and Poverty Reduction Strategy. p National Program on Community Empowerment/(PNPM). p Program Keluarga Harapan (Household Conditional Cash Transfer / CCT. ) p PNPM Generasi Sehat dan Cerdas (Community CCT. ) p

National Program on Community Empowerment (PNPM) p Definition n PNPM is a program that places poor communities as the driver in the decision making process of local development. p Component n Community facilitation. n Block grant (USD 163, 000/sub-district/yr). n Local government facilitation. p Coverage and Budget n Coverage 2009: All urban and rural sub-districts in the country (more than 6408. ) n Budget 2009: USD 1. 2 billion.

PNPM-Community Empowerment. Process PNPM Community Empowerment 4. Comm. Self Mapping: • Conceptualizing needs and local potentials. • Problem solving. 3. Poverty Reflection: • Pov. Identification. • Conceptualizing poverty. • Identify cause of pov. • Identify potential to overcome problems. 5. Community Organizing: Establish functional comm. institution through democratic and value based approach. 6. Plan Development: • Identification & prioritization. • Development of programs and activities. • Discussion with service provider (community CCT. ) 7. Execution of Activities: 2. Comm. Meeting: • Developing sense of comm. • Democratizing comm. • Awareness of self existense. 1. Socialization to Community: • Social mapping • Program socialization • Establish smaller groups of beneficiaries. • Establish common ‘space’ to independently solve problems. 8. Beneficiaries: • Community groups (esp. the poor)

Harmonization of Community Empowerment Program within PNPM support programs § PNPM support components: • Sectoral community grants. • Sectoral / technical facilitators. Fi sh re tu ul ric Ag alth He on cati Edu al Leg er For ies Gendesetry Infrrastruc ture § All sectoral programs (including legal sector. ) Etcetra 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.

Harmonization at National Level p Coordination among ministries is still a problem. p Among donor is even easier PNPM Support Facility. p Improve everything related to tap international financial resources (budgeting, procurement, reporting/accounting) and make better use of them.

Natural Disaster Management and Mitigation p Indonesia is in the natural disaster prone area. p 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. p Coordination has been the ghost of development – do it well!

Presentation Outline Poverty: Definition and Some Indicators. p Poverty Reduction Strategy. p Program Nasional Pemberdayaan Masyarakat (PNPM). p Program Keluarga Harapan (Household Conditional Cash Transfer. ) p PNPM Generasi Sehat dan Cerdas (Community CCT. ) p

Objectives Health and Nutrition: v To improve access of the poor to basic health care (especially for children and expecting and lactating women). v To improve nutrition condition of the poor children. Education: v. To improve net enrollment in elementary and junior secondary school for the poor children. v. Target group especially for the children who are outside the school system. In the long run: • Improve quality of human resources • Break poverty chain

Program Keluarga Harapan (Household CCT) p p 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 Harapan CCT) Program Keluarga Harapan (Household CCT) p p p 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 Harapan CCT) Program Keluarga Harapan (Household CCT) p Benefit: n n n p 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: n n n Baseline survey. Rapid assessment (what’s wrong with the design. ) 2 yearly evaluation.

Presentation Outline Poverty: Definition and Some Indicators. p Poverty Reduction Strategy. p Program Nasional Pemberdayaan Masyarakat (PNPM). p Program Keluarga Harapan (Household Conditional Cash Transfer / CCT. ) p PNPM Generasi Sehat dan Cerdas (Community CCT. ) p

PNPM GENERASI SEHAT DAN CERDAS (Community CCT) p Definition: A community-based CCT. Household CCT conditionalities apply, but benefit goes to community to decide. p Coverage and Budget: n n 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. p Benefit: USD 8700/village/yr. p Duration of pilot activities: 2007 - 2009.

How Does the Project Achieve Its Objectives? p Health Indicators: n n p 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: n Students 6 – 15 yrs are enrolled in schools with at least 85% attendance.

How Do They Use the Money? p Health: n n n Public awareness. Food supplement. Transport cost for mothers and midwifes. Subsidy / savings for deliveries. Equipment for health centers. Improve local infrastructure of health centers. p Education: n n n 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.

Possible Cooperation p p p 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.

TERIMA KASIH