Policy Paper
Poverty Reduction Programs
in Indonesia
CONTENT
Background 02
Policies and Strategies 07
Programs 10
Best Practices 24
What Next: MP3KI 27
Tools 30
What We Can Offer 33
About BAPPENAS 35
01
BACKGROUND
02
BACKGROUND
03
BACKGROUND
BACKGROUND
THE DISPARITY OF POVERTY RATE BETWEEN
URBAN AND RURAL AREAS
Poverty Rate
2004-2014
45
39.30
40
36.15
37.17
35.10
34.96
35
Percentage of rural poor households
by source of main income, March, 2010
Percentage of poor people by areas, 2004-2012
32.53
31.02
30.02
30
25
29.13
28.59
21.81
20
25
20.11
20.37
19.98
18.93
17.35
12,5-13,5
20
15
17.75
16.66
15.97
16.58
15.42
10
14.15
13.33
16.56
11,5-12,5
10,5-11,5
10,5-11,5
11.66
12.13
12.52
11.68
6%
11.65
10.72
10
9.87
9.32
12.49
15%
14.72
13.47
11.96
9,5-10,5
5
8,0-10,0
72%
8.60
7%
5
0
0
2004
2005
2006
Population of the Poor
04
15.72
15
20072
008
2009
Poverty Rate
20102
011M
ar-2012 Sep-2012
2013
Poverty Rate Targe
t
2014
2004
2005
2006
2007
Uraban
2008
Rural
2009
2010
2011
2012
Others
Industry
Unemployment
Agriculture
05
BACKGROUND
POLICIES and STRATEGIES
National Medium-Term
Development Plan
(RPJM) 2010-2014
LABOUR FORCE &
UNEMPLOYMENT
140
PERCENTAGE OF
UNEMPLOYMENT
120
(2012)
100
INDONESIA FOUR-TRACK DEVELOPMENT STRATEGY
million people
6,14%
80
PRO-GROWTH
60
PRO-JOB
PROENVIRONMENT
PRO-POOR
40
20
RKP 2010
Bureaucracy Reform & Good Governance
2
Education
3
Health
4
Poverty Reduction
5
Food Resiliance
6
Infrastructure
7
Investment and business Climate
8
Energy
4,000
9
Environment and Disaster Management
3,000
10
2,000
11
Culture, Creativity, & Technology Innovation
+1
Politic, Law, and Security
+2
Economic
(Government AnnualWork Plan)
+3
Social Welfare
NATIONAL ECONOMY RECOVERY AND
SUSTAINING THE WELFARE OF THE
PEOPLE
Feb-12
Aug-12
Unemployment
7,000
Unemployment
Rural and Urban
6,000
5,000
thousands people
Aug-11
Feb-11
Aug-10
Feb-10
Aug-09
Feb-09
Aug-08
Feb-08
Aug-07
Feb-07
Aug-06
Feb-06
Feb-05
Nop-05
2004
2003
2002
2001
2000
Labor Force
NATIONAL ECONOMY RECOVERY AND
SUSTAINING THE WELFARE OF THE
PEOPLE
RKP 2011
ACCELERATION OF THE ECONOMIC
GROWTH SUPPURTED BY
STRENGTHED GOOD GOVERNANCE &
THE SINERGY OF CENTRAL-LOCAL
RKP 2012
EXPANSION OF FAIR AND INCLUSIVE
ECONOMIC GROWTH FOR
INCREASING PEOPLE’S WELFARE
RKP 2013
1,000
(Government AnnualWork Plan)
NATIONAL ECONOMY RECOVERY AND
SUSTAINING THE WELFARE OF THE
PEOPLE
RKP 2014
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Feb-05
Feb-06
Aug-06
Feb-07
Aug-07
Feb-08
Aug-08
Feb-09
Aug-09
Feb-10
Aug-10
Feb-11
Aug-11
Feb-12
Aug-12
0
06
(Government AnnualWork Plan)
1
0
Urban
Rural
07
POLICIES and STRATEGIES
POLICIES and STRATEGIES
Clusters of Poverty
Alleviation Programs
GOVERNMENT POLICY
TO REDUCE POVERTY
tat
ic s
l&
ocia
ec
m
ono
us
F
SEL CE
IAN
REL
’s s
or
e po
f th
e
rov
mp
lly i
to
men
dua
Gra
1ST CLUSTER
[Provide fish]
Community
Empowerment
Assistance &
Social Protection
Block grants & facilitation
through PNPM to increase
community capacity & self
reliance
Program: rice subsidy, CCT,
health insurance, scholar-ships,
UCT (in crisis), etc
Target: the poorest, poor &
near poor Households
08
2nd CLUSTER
[Facilitate with fish rod]
Target: poor commu-nities of
subdistricts
3rd CLUSTER
4th CLUSTER
[Assist to have fish-rod & boat] [Assist to have affordable basic
services in certain areas]
SMEs
Empowerment
Micro credits provision (< Rp
5 million) through banks, &
other types of financial
assistance
Pro-Poor Program
1. Housing
2. transportation
3. Clean water
4. Electricity
5.Fishermen livelihood
6.Marginal group in
urban areas
Target: SMEs
09
PROGRAMS
PROGRAMS
CLUSTER 1
SOCIAL
PROTECTION
SOCIAL
ASSISTANCE
PROGRAMS
n Social protection framework is necessary to respond to various types of risks and vulberabilities.
It constitutes policies and programs that seek to reduce vulnerability to risks and enhance
status and rights of marginalizes group by protecting livelihood and promoting employment.
n Social Protection refers to the system of protective measures designed to assist individuals,
households and communities to manage risks and economic shocks, and to provide support to
the critically vulnerable.
5LFHIRUWKH3RRU+RXVHKROGV 5DVNLQ LVDLPHGDW
reducing the expenditure or the burden of poor families
through the rice provision for the poor households.
n Social insurance is a component of social protection and includes the key social insurances,
LQFOXGLQJKHDOWKLQVXUDQFHSHQVLRQLQVXUDQFHXQHPSOR\PHQWEHQHÀWVZRUNLQMXULHVDQG
GLVDELOLW\JUDQWV PDLQO\ÀQDQFHGE\FRQWULEXWLRQVZKLOHJRYHUQPHQWZLOOVXSSRUWZLWKSUHPLXP
VXEVLG\IRUVSHFLÀFWDUJHWJURXS
+HDOWK&DUH*XDUDQWHH3URJUDP -DPNHVPDV LVDLPHGDW
SURWHFWLQJWKHSRRUIDPLOLHVDJDLQVWÀQDQFLDOULVNVGXULQJ
illnesses or health problems.
n Social assistance and social safety nets includes non-contributory measures targeted at
vulnerabe groups/individuals, such as poor, children, elderly, or disabled persons (mainly taxÀQDQFHG
6FKRODUVKLSIRUWKH3RRU %DQWXDQ6LVZD0LVNLQ%60
is aimed at developing the quality of human resources
through the provision of the scholarship for school-aged
kids from poor families.
)DPLO\+RSH3URJUDP 3URJUDP.HOXDUJD+DUDSDQ
3.+ LVRQHRIVRFLDOSURWHFWLRQSURJUDPVZKLFKLVXVLQJ
WKHFRQGLWLRQDOFDVKWUDQVIHUDSSURDFK &&7 WRFKDQJH
the behavious of very poor families to access the health
care and education basic services more.
Scholarship for the Poor
10
Family Hope Program
11
PROGRAMS
NATIONAL
SOCIAL
SECURITY
SYSTEM
PROGRAMS
CLUSTER 2
7KH*RYHUQPHQWRI,QGRQHVLDKDVWDNHQPDMRUVWHSVSDUWLFXODUO\WKURXJKWKH
implementation of Law No.11/2009 on Social Welfare and Law No.40/2004 on
WHAT IS
PNPM
WKH1DWLRQDO6RFLDO,QVXUDQFH6\VWHP 6-61 ZKLFKSURYLGHVWKHOHJDOEDVLVIRU
XQLYHUVDOVRFLDOSURWHFWLRQFRYHUDJH7KHHQDFWPHQWRIODZ1RRQWKH
,QVWLWXWLRQDOL]DWLRQRI6RFLDO6HFXULW\ %3-6 KDVHQGRUVHGWKHJRYHUQPHQWWR
integrate and expand the current social insurance that are fragmented in several
institution.
SUB-SYSTEM
VOLUNTARY INSURANCE:
PROVIDE ADDITIONAL
PRODUCTS OF INSURANCE
SUB-SYSTEM SOCIAL
ASSISTANCE:
SJSN
TO FULFIL THE BASIC
NEEDS & TO IMPROVE THE
CAPACITY OF THE POOR TO
MOVE OUT OF POVERTY OR
PREVENT FURTHER FALLING
INTO POVERTY
SUB-SYSTEM
SOCIAL INSURANCE:
UNIVERSAL COVERAGE.
NON POOR HAS AN
OBLIGATION TO INSURE
ALL RISKS (HEALTH,
PENSION, INJURY, LIFE,
ETC)
12
3130LVDQXPEUHOODSROLF\IRUSURJUDPVXVLQJFRPPXQLW\HPSRZHUPHQWDSSURDFKZKLFK
DWWHPSWVWRLQFUHDVHFRPPXQLW\FDSDFLW\DQGVHOIKHOSWRFUHDWHMREVDQGDFKLHYHEHWWHU
standard of community welfare.
13
PROGRAMS
PROGRAMS
PNPM
RURAL
ACHIEVEMENTS
Per capita consumption
Increase
9.1%
PNPM Rural aims at reducing poverty and improve
local-level governance in rural areas of Indonesia through
the provision of investment resources to support
productive proposals developed by communities, using a
participatory planning process.
2011: 63,000 villages/5,020 sub-districts/393 districts
5
households in PNPM Rural
areas compare to
non-PNPM
Rural areas
years on:
For the poorest
20%
Achievements and
Lesson Learned
2007
RESULT OF
PNPM
of households, consumption increase
2012
11.8%
For the poorest
20%
of kecamatan, households
consumption increase
12.7%
PNPM
URBAN
ACHIEVEMENTS
from improved socio-economic and local governance conditions.
2011: 10,948 urban wards in 268 cities/districts
For PNPM Urban,
community participation is considerably high
Planning
Good quality infrastructure
exceeded
of target
Gotong Royong
70%
40% women participation
Community
Participation
Level
14
39%
Improved capacity
of community organizations
level and the poorest
community members’
participation level
15
PROGRAMS
INFRASTRUCTURE
ACTIVITIES
6DJDUD0DQLN%ULGJH&LSDQFDU9LOODJH6XPHGDQJ'LVWULFW
:HVW-DYDXVLQJWKHJUDQWDERXW,'5PLOLRQDQGFRPPXQLW\
FRQWULEXWLRQDERXW,'5PLOOLRQ
PROGRAMS
SOCIAL
ACTIVITIES
Activity of Posyandu
LQWHJUDWHGVHUYLFHIRUFKLOGUHQXQGHU
%.0LVSURYLGLQJIUHHPHGLFDOVHUYLFH
ECONOMIC
ACTIVITIES
Women entrepreneur groups are weaving
traditional clothes
16
0LFURFUHGLWVIRUZRPHQHQWUHSUHQHXUJURXSV
17
PROGRAMS
PROGRAMS
CLUSTER 3
.85SURJUDPLVDFRPELQDWLRQRIJRYHUQPHQW·VFUHGLWJXDUDQWHHVFKHPHDQGEDQNV·
FUHGLWIRU&RRSHUDWLYHVDQG060(V &060(V
PEOPLE’S
ENTREPRENEURSHIP
CREDIT (KUR)
SCHEME
Objective:LQFUHDVH&060(V·DFFHVVWRÀQDQFH
Target:IHDVLEOHEXWQRQEDQNDEOH&060(V
7KHSURJUDPZDVODXQFKHGE\,QGRQHVLDQ3UHVLGHQWLQ1RYHPEHU
3. Automatic
Guarantee
BANK
Regulatory
Committee/
Implementing
Unit
1. Credit
application
5. Regulation,
Monitoring &
Evaluation
Guarantee
Institutions
4. Guarantee
Compensation
2. Credit
agreement
Guarantee
Institutions
Debitor
Sosialization,
Capacity
Building for
C-MSMEs
feasible to
apply for loan
18
19
PROGRAMS
PROGRAMS
KUR
TYPES
KUR Micro
t Max loan of 20 million IDR;
t Credit interest up to 22 percent effective per year;
t Not require to be checked for Debtor Information System (Sistem
Informasi Debitur – SID).
ACCESS TO
FINANCE
KUR Retail
t Loan between 20 million IDR to 500 billion IDR;
t Credit interest up to 14 percent effective per year;
t Require to be checked for Debtor Information System (Sistem
Informasi Debitur – SID).
±/%3.3!
±/-%1.,! '+&+36(
KUR Linkage
t Credit volume up to 500 billion IDR for channeling scheme, with
interest rate similar to KUR Micro and Retail;
t Credit volume up to 2 trillion IDR for executing scheme with interest rate up to 14 percent for linkage institution and 22 percent for
end users (C-MSMEs) effective per year.
±02.%1+,! '+&+,6(
!
20
t More than 100.2 trillion IDR KUR have been disbursed to
more than 7.8 million C-MSMEs since November 2007
until 31 January 2013.
t Most of KUR disbursed to C-MSMEs in trade, restaurant
and hotel sector (57,25 % of total KUR volume, and 67,50
% of total debtor); and agriculture sector (16,93 % of total
KUR volume, and 14,28 % of total debtor).
t The number of debitors of KUR from 2007 to Jan. 31, 2013
is 7.85 million.
%
#! $
! ""
± 53,21 million units (98.5%)
!
!
" "!
!
!
!
" "!
" "
!
"
!
!
"
" "
!
"
21
PROGRAMS
CLUSTER 4
PROGRAMS
ECONOMIC GROWTH &
POVERTY RATES
Focus in urban areas, less developed
regions, and coastal areas
Targets
Cheap houses:
In 2012, there will be 141, 983 units
(IDR 6 millions each).
Affordable transportation:
In 2014, the public transportation
with less than 1000cc will be available.
Clean water:
2011-2014, clean water will be available in 205 selected coastal areas and
200 villages.
Affordable electricity:
In 2011-2014, there will be 28,933
electrical grids directly to poor
houses.
22
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Although there was an economic crisis, the poverty rate
HFRQRPLFJURZWK 3RYHUW\UDWHLQFUHDVHG7KHUHZDVQR
was still declining in 2009 because of the poverty reduction
comprehensive programs to alleviate the poverty in Indone-
SURJUDPVZLWKIRXUFOXVWHUHGDIÀUPDWLYHSROLFLHV
sia at that time.
23
BEST PRACTICES
BEST PRACTICES
BEST
PRACTICES
“Increasing Access to Clean Water Using Microfinance”
Expanding piped water services does not
by itself guarantee increased access to clean
water, as there is a substantial upfront cost
that many families around the country can not
afford. On average, new customers must pay
a connection fee of approximately US$ 150
to tap into a municipal piped water system.
This charge can be as high as US$ 300, in case
where the pipe network has to be extended in
order to reach neighborhood.
Indonesia Urban Water, Sanitation, and
Hygiene (IUWASH) ramp up an approach
implemented under the Environmental
Services Program (ESP), whereby new
customers can amortize cost of a new
connection through a partnership between the
water utility and local microfinance institution
(MFI). This is an innovative and affordable way
for the community to access basic services
using financial inclusion.
“Zero Capital” And “Soap“ Rotary-Saving Clubs
(An Inspiration from the PKH group at Serpeng and at Kranggan Gunungsari)at Kranggan Gunungsari)
PKH group at Serpeng and Kranggan Gunungsari develop unique activities to help each other. At Serpeng, they
first create a fictitious rotary-saving clubs. They imagine getting a big loan. However, they pay the installments for
real. This way, they manage to raise funds to start real saving and loan activity. Meanwhile, at Kranggan, the rotarysaving club is not in form of cash saving. The group uses sachet of soap as a mean of saving.
By: Theresia Ratnawangi
PKH facilitator in Semanu sub district, Gunung Kidul, DI Yogyakarta
“Sorry Miss, I Have a Lots of Kids”
(Inspired by Tri Wardani, an RTSM in Semuluh Kidul)
The PKH group informed me that Tri Wardani, who had already seven kids, was pregnant again. She refused to
check her pregnancy to the Puskesmas. Her eldest child was suspended from school. I and the group leader
came to meet her. We manage to persuade Tri Wardani that, since she was a PKH recipient, she has to check the
pregnancy and get on the birth control program. She understood and apologized for all the things that happened.
“I’m sorry mam, for I have lots of kids,” she said.
By: Deswandi
PKH facilitator in Kampar sub district, Kampar, Riau
24
25
BEST PRACTICES
WHAT NEXT: MP3KI
Dollar Producer Tub
0$67(53/$12)$&&(/(5$7,21 (;3$16,212)329(57
in Indonesia
CONTENT
Background 02
Policies and Strategies 07
Programs 10
Best Practices 24
What Next: MP3KI 27
Tools 30
What We Can Offer 33
About BAPPENAS 35
01
BACKGROUND
02
BACKGROUND
03
BACKGROUND
BACKGROUND
THE DISPARITY OF POVERTY RATE BETWEEN
URBAN AND RURAL AREAS
Poverty Rate
2004-2014
45
39.30
40
36.15
37.17
35.10
34.96
35
Percentage of rural poor households
by source of main income, March, 2010
Percentage of poor people by areas, 2004-2012
32.53
31.02
30.02
30
25
29.13
28.59
21.81
20
25
20.11
20.37
19.98
18.93
17.35
12,5-13,5
20
15
17.75
16.66
15.97
16.58
15.42
10
14.15
13.33
16.56
11,5-12,5
10,5-11,5
10,5-11,5
11.66
12.13
12.52
11.68
6%
11.65
10.72
10
9.87
9.32
12.49
15%
14.72
13.47
11.96
9,5-10,5
5
8,0-10,0
72%
8.60
7%
5
0
0
2004
2005
2006
Population of the Poor
04
15.72
15
20072
008
2009
Poverty Rate
20102
011M
ar-2012 Sep-2012
2013
Poverty Rate Targe
t
2014
2004
2005
2006
2007
Uraban
2008
Rural
2009
2010
2011
2012
Others
Industry
Unemployment
Agriculture
05
BACKGROUND
POLICIES and STRATEGIES
National Medium-Term
Development Plan
(RPJM) 2010-2014
LABOUR FORCE &
UNEMPLOYMENT
140
PERCENTAGE OF
UNEMPLOYMENT
120
(2012)
100
INDONESIA FOUR-TRACK DEVELOPMENT STRATEGY
million people
6,14%
80
PRO-GROWTH
60
PRO-JOB
PROENVIRONMENT
PRO-POOR
40
20
RKP 2010
Bureaucracy Reform & Good Governance
2
Education
3
Health
4
Poverty Reduction
5
Food Resiliance
6
Infrastructure
7
Investment and business Climate
8
Energy
4,000
9
Environment and Disaster Management
3,000
10
2,000
11
Culture, Creativity, & Technology Innovation
+1
Politic, Law, and Security
+2
Economic
(Government AnnualWork Plan)
+3
Social Welfare
NATIONAL ECONOMY RECOVERY AND
SUSTAINING THE WELFARE OF THE
PEOPLE
Feb-12
Aug-12
Unemployment
7,000
Unemployment
Rural and Urban
6,000
5,000
thousands people
Aug-11
Feb-11
Aug-10
Feb-10
Aug-09
Feb-09
Aug-08
Feb-08
Aug-07
Feb-07
Aug-06
Feb-06
Feb-05
Nop-05
2004
2003
2002
2001
2000
Labor Force
NATIONAL ECONOMY RECOVERY AND
SUSTAINING THE WELFARE OF THE
PEOPLE
RKP 2011
ACCELERATION OF THE ECONOMIC
GROWTH SUPPURTED BY
STRENGTHED GOOD GOVERNANCE &
THE SINERGY OF CENTRAL-LOCAL
RKP 2012
EXPANSION OF FAIR AND INCLUSIVE
ECONOMIC GROWTH FOR
INCREASING PEOPLE’S WELFARE
RKP 2013
1,000
(Government AnnualWork Plan)
NATIONAL ECONOMY RECOVERY AND
SUSTAINING THE WELFARE OF THE
PEOPLE
RKP 2014
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Feb-05
Feb-06
Aug-06
Feb-07
Aug-07
Feb-08
Aug-08
Feb-09
Aug-09
Feb-10
Aug-10
Feb-11
Aug-11
Feb-12
Aug-12
0
06
(Government AnnualWork Plan)
1
0
Urban
Rural
07
POLICIES and STRATEGIES
POLICIES and STRATEGIES
Clusters of Poverty
Alleviation Programs
GOVERNMENT POLICY
TO REDUCE POVERTY
tat
ic s
l&
ocia
ec
m
ono
us
F
SEL CE
IAN
REL
’s s
or
e po
f th
e
rov
mp
lly i
to
men
dua
Gra
1ST CLUSTER
[Provide fish]
Community
Empowerment
Assistance &
Social Protection
Block grants & facilitation
through PNPM to increase
community capacity & self
reliance
Program: rice subsidy, CCT,
health insurance, scholar-ships,
UCT (in crisis), etc
Target: the poorest, poor &
near poor Households
08
2nd CLUSTER
[Facilitate with fish rod]
Target: poor commu-nities of
subdistricts
3rd CLUSTER
4th CLUSTER
[Assist to have fish-rod & boat] [Assist to have affordable basic
services in certain areas]
SMEs
Empowerment
Micro credits provision (< Rp
5 million) through banks, &
other types of financial
assistance
Pro-Poor Program
1. Housing
2. transportation
3. Clean water
4. Electricity
5.Fishermen livelihood
6.Marginal group in
urban areas
Target: SMEs
09
PROGRAMS
PROGRAMS
CLUSTER 1
SOCIAL
PROTECTION
SOCIAL
ASSISTANCE
PROGRAMS
n Social protection framework is necessary to respond to various types of risks and vulberabilities.
It constitutes policies and programs that seek to reduce vulnerability to risks and enhance
status and rights of marginalizes group by protecting livelihood and promoting employment.
n Social Protection refers to the system of protective measures designed to assist individuals,
households and communities to manage risks and economic shocks, and to provide support to
the critically vulnerable.
5LFHIRUWKH3RRU+RXVHKROGV 5DVNLQ LVDLPHGDW
reducing the expenditure or the burden of poor families
through the rice provision for the poor households.
n Social insurance is a component of social protection and includes the key social insurances,
LQFOXGLQJKHDOWKLQVXUDQFHSHQVLRQLQVXUDQFHXQHPSOR\PHQWEHQHÀWVZRUNLQMXULHVDQG
GLVDELOLW\JUDQWV PDLQO\ÀQDQFHGE\FRQWULEXWLRQVZKLOHJRYHUQPHQWZLOOVXSSRUWZLWKSUHPLXP
VXEVLG\IRUVSHFLÀFWDUJHWJURXS
+HDOWK&DUH*XDUDQWHH3URJUDP -DPNHVPDV LVDLPHGDW
SURWHFWLQJWKHSRRUIDPLOLHVDJDLQVWÀQDQFLDOULVNVGXULQJ
illnesses or health problems.
n Social assistance and social safety nets includes non-contributory measures targeted at
vulnerabe groups/individuals, such as poor, children, elderly, or disabled persons (mainly taxÀQDQFHG
6FKRODUVKLSIRUWKH3RRU %DQWXDQ6LVZD0LVNLQ%60
is aimed at developing the quality of human resources
through the provision of the scholarship for school-aged
kids from poor families.
)DPLO\+RSH3URJUDP 3URJUDP.HOXDUJD+DUDSDQ
3.+ LVRQHRIVRFLDOSURWHFWLRQSURJUDPVZKLFKLVXVLQJ
WKHFRQGLWLRQDOFDVKWUDQVIHUDSSURDFK &&7 WRFKDQJH
the behavious of very poor families to access the health
care and education basic services more.
Scholarship for the Poor
10
Family Hope Program
11
PROGRAMS
NATIONAL
SOCIAL
SECURITY
SYSTEM
PROGRAMS
CLUSTER 2
7KH*RYHUQPHQWRI,QGRQHVLDKDVWDNHQPDMRUVWHSVSDUWLFXODUO\WKURXJKWKH
implementation of Law No.11/2009 on Social Welfare and Law No.40/2004 on
WHAT IS
PNPM
WKH1DWLRQDO6RFLDO,QVXUDQFH6\VWHP 6-61 ZKLFKSURYLGHVWKHOHJDOEDVLVIRU
XQLYHUVDOVRFLDOSURWHFWLRQFRYHUDJH7KHHQDFWPHQWRIODZ1RRQWKH
,QVWLWXWLRQDOL]DWLRQRI6RFLDO6HFXULW\ %3-6 KDVHQGRUVHGWKHJRYHUQPHQWWR
integrate and expand the current social insurance that are fragmented in several
institution.
SUB-SYSTEM
VOLUNTARY INSURANCE:
PROVIDE ADDITIONAL
PRODUCTS OF INSURANCE
SUB-SYSTEM SOCIAL
ASSISTANCE:
SJSN
TO FULFIL THE BASIC
NEEDS & TO IMPROVE THE
CAPACITY OF THE POOR TO
MOVE OUT OF POVERTY OR
PREVENT FURTHER FALLING
INTO POVERTY
SUB-SYSTEM
SOCIAL INSURANCE:
UNIVERSAL COVERAGE.
NON POOR HAS AN
OBLIGATION TO INSURE
ALL RISKS (HEALTH,
PENSION, INJURY, LIFE,
ETC)
12
3130LVDQXPEUHOODSROLF\IRUSURJUDPVXVLQJFRPPXQLW\HPSRZHUPHQWDSSURDFKZKLFK
DWWHPSWVWRLQFUHDVHFRPPXQLW\FDSDFLW\DQGVHOIKHOSWRFUHDWHMREVDQGDFKLHYHEHWWHU
standard of community welfare.
13
PROGRAMS
PROGRAMS
PNPM
RURAL
ACHIEVEMENTS
Per capita consumption
Increase
9.1%
PNPM Rural aims at reducing poverty and improve
local-level governance in rural areas of Indonesia through
the provision of investment resources to support
productive proposals developed by communities, using a
participatory planning process.
2011: 63,000 villages/5,020 sub-districts/393 districts
5
households in PNPM Rural
areas compare to
non-PNPM
Rural areas
years on:
For the poorest
20%
Achievements and
Lesson Learned
2007
RESULT OF
PNPM
of households, consumption increase
2012
11.8%
For the poorest
20%
of kecamatan, households
consumption increase
12.7%
PNPM
URBAN
ACHIEVEMENTS
from improved socio-economic and local governance conditions.
2011: 10,948 urban wards in 268 cities/districts
For PNPM Urban,
community participation is considerably high
Planning
Good quality infrastructure
exceeded
of target
Gotong Royong
70%
40% women participation
Community
Participation
Level
14
39%
Improved capacity
of community organizations
level and the poorest
community members’
participation level
15
PROGRAMS
INFRASTRUCTURE
ACTIVITIES
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PROGRAMS
SOCIAL
ACTIVITIES
Activity of Posyandu
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ECONOMIC
ACTIVITIES
Women entrepreneur groups are weaving
traditional clothes
16
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17
PROGRAMS
PROGRAMS
CLUSTER 3
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FUHGLWIRU&RRSHUDWLYHVDQG060(V &060(V
PEOPLE’S
ENTREPRENEURSHIP
CREDIT (KUR)
SCHEME
Objective:LQFUHDVH&060(V·DFFHVVWRÀQDQFH
Target:IHDVLEOHEXWQRQEDQNDEOH&060(V
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3. Automatic
Guarantee
BANK
Regulatory
Committee/
Implementing
Unit
1. Credit
application
5. Regulation,
Monitoring &
Evaluation
Guarantee
Institutions
4. Guarantee
Compensation
2. Credit
agreement
Guarantee
Institutions
Debitor
Sosialization,
Capacity
Building for
C-MSMEs
feasible to
apply for loan
18
19
PROGRAMS
PROGRAMS
KUR
TYPES
KUR Micro
t Max loan of 20 million IDR;
t Credit interest up to 22 percent effective per year;
t Not require to be checked for Debtor Information System (Sistem
Informasi Debitur – SID).
ACCESS TO
FINANCE
KUR Retail
t Loan between 20 million IDR to 500 billion IDR;
t Credit interest up to 14 percent effective per year;
t Require to be checked for Debtor Information System (Sistem
Informasi Debitur – SID).
±/%3.3!
±/-%1.,! '+&+36(
KUR Linkage
t Credit volume up to 500 billion IDR for channeling scheme, with
interest rate similar to KUR Micro and Retail;
t Credit volume up to 2 trillion IDR for executing scheme with interest rate up to 14 percent for linkage institution and 22 percent for
end users (C-MSMEs) effective per year.
±02.%1+,! '+&+,6(
!
20
t More than 100.2 trillion IDR KUR have been disbursed to
more than 7.8 million C-MSMEs since November 2007
until 31 January 2013.
t Most of KUR disbursed to C-MSMEs in trade, restaurant
and hotel sector (57,25 % of total KUR volume, and 67,50
% of total debtor); and agriculture sector (16,93 % of total
KUR volume, and 14,28 % of total debtor).
t The number of debitors of KUR from 2007 to Jan. 31, 2013
is 7.85 million.
%
#! $
! ""
± 53,21 million units (98.5%)
!
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!
!
!
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" "
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!
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21
PROGRAMS
CLUSTER 4
PROGRAMS
ECONOMIC GROWTH &
POVERTY RATES
Focus in urban areas, less developed
regions, and coastal areas
Targets
Cheap houses:
In 2012, there will be 141, 983 units
(IDR 6 millions each).
Affordable transportation:
In 2014, the public transportation
with less than 1000cc will be available.
Clean water:
2011-2014, clean water will be available in 205 selected coastal areas and
200 villages.
Affordable electricity:
In 2011-2014, there will be 28,933
electrical grids directly to poor
houses.
22
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Although there was an economic crisis, the poverty rate
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was still declining in 2009 because of the poverty reduction
comprehensive programs to alleviate the poverty in Indone-
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sia at that time.
23
BEST PRACTICES
BEST PRACTICES
BEST
PRACTICES
“Increasing Access to Clean Water Using Microfinance”
Expanding piped water services does not
by itself guarantee increased access to clean
water, as there is a substantial upfront cost
that many families around the country can not
afford. On average, new customers must pay
a connection fee of approximately US$ 150
to tap into a municipal piped water system.
This charge can be as high as US$ 300, in case
where the pipe network has to be extended in
order to reach neighborhood.
Indonesia Urban Water, Sanitation, and
Hygiene (IUWASH) ramp up an approach
implemented under the Environmental
Services Program (ESP), whereby new
customers can amortize cost of a new
connection through a partnership between the
water utility and local microfinance institution
(MFI). This is an innovative and affordable way
for the community to access basic services
using financial inclusion.
“Zero Capital” And “Soap“ Rotary-Saving Clubs
(An Inspiration from the PKH group at Serpeng and at Kranggan Gunungsari)at Kranggan Gunungsari)
PKH group at Serpeng and Kranggan Gunungsari develop unique activities to help each other. At Serpeng, they
first create a fictitious rotary-saving clubs. They imagine getting a big loan. However, they pay the installments for
real. This way, they manage to raise funds to start real saving and loan activity. Meanwhile, at Kranggan, the rotarysaving club is not in form of cash saving. The group uses sachet of soap as a mean of saving.
By: Theresia Ratnawangi
PKH facilitator in Semanu sub district, Gunung Kidul, DI Yogyakarta
“Sorry Miss, I Have a Lots of Kids”
(Inspired by Tri Wardani, an RTSM in Semuluh Kidul)
The PKH group informed me that Tri Wardani, who had already seven kids, was pregnant again. She refused to
check her pregnancy to the Puskesmas. Her eldest child was suspended from school. I and the group leader
came to meet her. We manage to persuade Tri Wardani that, since she was a PKH recipient, she has to check the
pregnancy and get on the birth control program. She understood and apologized for all the things that happened.
“I’m sorry mam, for I have lots of kids,” she said.
By: Deswandi
PKH facilitator in Kampar sub district, Kampar, Riau
24
25
BEST PRACTICES
WHAT NEXT: MP3KI
Dollar Producer Tub
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