DRAFT THESIS pnpm cek123 48 gab2.pdf

TAKUSHOKU UNIVERSITY IMPROVING PARTICIPATORY DEVELOPMENT PROJECT: CAN THE INCREASED COMMUNITY PARTICIPATION AT PREPARATION AND PLANNING STAGE GET THE INCREASED COMMUNITY CONTRIBUTION? A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF INTERNATIONAL COOPERATION STUDIES IN CANDIDACY FOR DEGREE OF MASTER OF ARTS IN INTERNATIONAL DEVELOPMENT STUDIES BY MUHAMMAD DANIAL APPROVED BY TOKYO, JAPAN JULY 7, 2010

TAKUSHOKU UNIVERSITY IMPROVING PARTICIPATORY DEVELOPMENT PROJECT: CAN THE INCREASED COMMUNITY PARTICIPATION AT PREPARATION AND PLANNING STAGE GET THE INCREASED COMMUNITY CONTRIBUTION? A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF INTERNATIONAL COOPERATION STUDIES IN CANDIDACY FOR DEGREE OF MASTER OF ARTS IN INTERNATIONAL DEVELOPMENT STUDIES BY MUHAMMAD DANIAL TOKYO, JAPAN JULY 7, 2010

Copyright @ 2010 by Muhammad Danial. All rights reserved

FIGURES

1.1 Project Cycle of NUSSP ...........................................................................

10

2.1 National Policy and Strategy for Housing and Settlement Development

16

2.2 Project Cycle of NUSSP at Community Level ........................................

19

2.3 Project Cycle of Rural PNPM Project at Community Level ....................

21

2.4 Project Cycle of Urban PNPM Project at Community Level ...................

25

2.5 Community Development Process ...........................................................

29

2.6 Ladder of Citizen Participation ................................................................

32

3.1 Conceptual Framework of Research .......................................................

35

3.2 Map of Serang City ..................................................................................

36

3.3 Percentage of Infrastructure Access in Serang City Year 2006 ...............

58

4.1 Community Participation in Participatory Development Project .............

4.2 Government and Community’s Fund in Participatory Development Project

4.3 Community Participation in NUSSP ........................................................

81

4.4 Government and Community’s Fund in NUSSP Implementation ...........

TABLES

3.1 Population in Serang City Year 2006 ........................................................

3.2 Population in Kasemen District Year 2008 ..............................................

3.3 Poor People in Kasemen District Year 2008 ............................................

3.4 Education Facility in Kasemen District Year 2008 ..................................

3.5 Road Condition in Kasemen District Year 2008 ......................................

3.6 Education of Households in Kasemen District Year 2008 .......................

3.7 Slums Area in Kasemen District Year 2008 ............................................

3.8 Water Supply and Sanitation Access in Kasemen District Year 2007 .....

4.1 Framework of Participatory Development Projects .................................

4.2 The Implementation of Participatory Development Project ....................

4.3 Site Survey in Kasemen District ..............................................................

4.4 Neighborhood Upgrading Plan in Kasemen District ................................

4.5 NUP Implementation in Kasemen Sub-district ........................................

4.6 Constructed Infrastructure in Kasemen Sub-district ................................

4.7 NUP Implementation in Sawahluhur Sub-district ....................................

4.8 Constructed Infrastructure in Sawahluhur Sub-district ............................

4.9 NUP Implementation at Banten Sub-district ............................................

4.10 Constructed Infrastructure in Banten Sub-district ....................................

4.11 The Implementation of NUSSP ................................................................

ACKNOWLEDGEMENT

ABBREVIATIONS

ADB : Asian Development Bank

AMPL : Water Supply and Environmental Sanitation

APBD : Local Annual Budget

APBN : National Annual Budget

BPD : Sub-district Representative Council

CBO : Community-based Organization

CSG : Community Self-help Group

LCO : Local Coordinating Office

LPM

: Sub-district Empowerment Organization

MTDP : Medium-term Development Plan

NGO : Non Governmental Organization

NUP : Neighborhood Upgrading Plan

NUSSP : Neighborhood Upgrading Shelter Sector Project

PDAL : State-Owned Wastewater Treatment Company

PDAM

: State-Owned Water Supply Company

Perumnas : Stated-Owned Housing Company

PLA : Participatory Learning and Action

PNPM : The National Program of Community Empowerment

PRA : Participatory Rural Appraisal

RP4D : Local Development Plan of Housing and Settlement

WB : World Bank

ABSTRACT

In Indonesia, the limited capability of government and the expansion of slum areas have become the main problems in the effort to improve settlement for the low- income family. It is also worsened by limited capability and interest of the communities in understanding their settlement conditions. Since 2004, Indonesia Government has launched Neighborhood Upgrading Shelter Sector Project (NUSSP) to help living conditions improvement of the urban poor. The implementation of NUSSP in Kasemen District Serang City shows that there is a different community contribution among sub-districts which have participated in NUSSP. This research analyzes community participation and community contribution in the implementation of participatory development project. The hypothesis of this research is the increased community participation at preparation and planning stage can get the increased community contribution in the implementation of participatory development project. Qualitative analysis method is used to collect data and information, including literature, statistical data, and information from local actors. The relationship between community participation at preparation and planning stage and community contribution is analyzed in macro and micro level. At macro framework level, it is examined by comparing the framework of NUSSP implementation approach and the framework of other participatory development projects which are implemented in Kasemen District. These participatory development projects are Rural PNPM Project and Urban PNPM Project. At the micro level, the relationship between community participation at preparation and planning stage and community contribution is examined by analyzing 3 sub-districts

within NUSSP implementation located in Kasemen district, which are Kasemen sub- district, Sawahluhur sub-district, and Banten sub-district. This research concludes that community participation at preparation and planning stage has influenced community contribution in the implementation of participatory development project. At macro level, higher community contribution in the implementation of participatory development project is influenced by higher community participation at preparation and planning stage. Urban PNPM Project has more comprehensive project component and then community action plan has been prepared for several years (multiyear time frame). Infrastructure is also prioritized and selected by community at sub-district level. At micro level, higher community contribution in the implementation of NUSSP is also influenced by higher community participation. Different from other sub-district, community participation in Banten sub-district is still limited. Community dissatisfaction is raised at CBO member selection, site survey, and Neighborhood Upgrading Plan preparation. However, community contribution is also influenced by family income and education level of community.

CHAPTER 1 INTRODUCTION

The improvement of the quality of life of human beings is the first and most important objective of every human settlement policy (The Vancouver Declaration on Human Settlement 1976). As a part of countries assembled at the United Nations Conference on Human Settlements in Istanbul, Indonesia Government has also endorsed the universal goals to ensure that adequate shelter can be provided for all people and make human settlements safer, healthier and more livable, equitable, sustainable and productive (Istanbul Declaration on Human Settlements 1996). The Summit’s Millennium Declaration has also set up commitments in human rights, good governance and democracy. This declaration has set up a road map which is translated into 8 goals and 18 targets to reduce poverty, hunger, disease, illiteracy,

environmental degradation and discrimination against women 1 . For housing and settlement sector, the key target is Target 11 which is to have achieved a significant

improvement in the lives of at least 100 million slum dwellers by 2020 (UN Habitat 2003).

According to the Cities Alliance Action Plan, slum is defined as neglected part of cities where housing and living conditions are appallingly poor. Poverty and inadequate responses on housing development cause slum condition. One of most frequently mentioned as characteristics of slum is the lack of basic services. Lack of

1 For detail information about Millennium Development Goals, see United Nations Millennium Declaration. Fifty-fifth session, Agenda item 60 (b)..

access to sanitation facilities and safe water sources is the main feature, which is supplemented by the lack of waste collection facilities, electricity, footpaths, street lighting and drainage (UN Habitat 2003).

In Indonesia, housing and settlement development is designed to be placed on the framework of improving the dignity and self respect, quality of life and welfare for every Indonesian family (Act no 4 Year 1992 on Housing and Settlement). Other constitutional directives also aim to provide housing access for people in Indonesia,

especially for low income family 2 . Based on Act no 4 Year 1992, Indonesia Government has outlined the National Policy and Strategy of Housing and

Settlement as a reference for housing and settlement development based on the integration of social, economy, and environmental development, good governance and sustainable development principles.

The National Policy and Strategy of Housing and Settlement aim to ensure that all citizens can live in a decent house with a healthy environment, safe, harmonious, productive, and sustainable. General strategy chosen to achieve the goal is by empowering community and improving actor’s roles in housing and settlement development, especially housing for low income family. Citizen has an equal right and opportunity to participate in housing and settlement development process. Participatory development has become one of key elements in development strategies and development cooperation. By participatory development, people are stimulated to be creative, participate in productive processes, and share their benefits.

National Medium-term Development Plan mentions that the limited government capability has become one of the obstacles in the effort to provide housing for the

2 Other constitutional directives are the 1945 constitution of the Republic Indonesia article 48H, Act no 25 Year 2000 on National Development Program, and Building Act 2003 article 43. See Hadar,

Ivan A.Housing for All. Target MDGS, Indonesia. 2008.

low-income family. The government has made efforts to provide settlement infrastructure simple house areas which are inhabited by the low income family. However, government capability to support the provision of such infrastructure and facilities is still limited. Other main problem is the expansion of slum areas. The extent of slum areas reached 40,053 hectares in 1996, and it rose to 47,500 hectares by 2000 which is dispersed at 10,000 locations and inhabited by around 17.2 million persons (National Medium-term Development Plan 2004-2009). This slum areas extension is in line with the growth of the population and the increasingly uncontrolled growth of primary cities that act as the centers for attracting increased migration. It is worsened by limited capability and interest of the communities in understanding their settlement conditions.

To help improve living conditions of the urban poor, Indonesia Government has implemented Neighborhood Upgrading Shelter Sector Project since 2004. NUSSP was designed to assist local government and local communities based on participatory development approach to design and implement the improvement of settlement environment. Local communities play a crucial role in improving their capabilities to identify and discuss their housing problems, explore and planning program, and then implement their program to solve the problem. There are 32 regencies/cities that have implemented NUSSP and Serang City is one of them. Serang City is the capital city of Banten Province, and located at western Java Island, ± 70 km from Jakarta city (the capital city of Republic of Indonesia). In the mid of 2007, the number of inhabitants in Serang City is 505.510 people (about 115.872 households), which spread over 6 districts and 69 sub districts. In 2006, the extent of slums area in Serang regency reached 47.393 ha and it has tended to increase each To help improve living conditions of the urban poor, Indonesia Government has implemented Neighborhood Upgrading Shelter Sector Project since 2004. NUSSP was designed to assist local government and local communities based on participatory development approach to design and implement the improvement of settlement environment. Local communities play a crucial role in improving their capabilities to identify and discuss their housing problems, explore and planning program, and then implement their program to solve the problem. There are 32 regencies/cities that have implemented NUSSP and Serang City is one of them. Serang City is the capital city of Banten Province, and located at western Java Island, ± 70 km from Jakarta city (the capital city of Republic of Indonesia). In the mid of 2007, the number of inhabitants in Serang City is 505.510 people (about 115.872 households), which spread over 6 districts and 69 sub districts. In 2006, the extent of slums area in Serang regency reached 47.393 ha and it has tended to increase each

Kasemen District is one of 6 districts located at Serang City. Its area is about 67,11 km2 wide which is divided into 11 sub-districts. In Kasemen District, NUSSP was implemented on 2008 by 3 (three) sub-district which are Kasemen Sub-district, Sawahluhur Sub-district, and Banten Sub-district. The implementation of NUSSP in Kasemen District Serang City has shown that there is a different community contribution among sub-districts which have participated in NUSSP.

In this thesis, community participation is analyzed through a case study on the implementation Neighborhood Upgrading Shelter Sector Project in Kasemen District that aims to analyze the similarities and differences in project implementation process at community level and results of three sub-districts in Kasemen District, Serang City, Indonesia. It will be done by looking at community participation in preparation and planning stage and its relationship to the contribution of community in NUSSP implementation.

This research set up the hypothesis about the influence of community participation in preparation and planning stage on community contribution. The hypothesis of research is by increasing community participation in preparation and planning stage, the contribution of community can also be increased.

The research questions which can be raised are:

1. How did Neighborhood Upgrading Shelter Sector Project encourage community participation in preparation and planning stage?

2. How did Neighborhood Upgrading Shelter Sector Project target community contribution differ?

3. What is the relationship between community participation at preparation and planning stage and community contribution?

This research aims to discover the influence of community participation in preparation and planning stage on community contribution at implementation stage. Particularly, this research will analyze the participation of community in preparation, planning, and implementation stage in Neighborhood Upgrading Shelter Sector

Project Preparation Stage

• Project Launching • Consultant Training • Project Orientation • Consultant Work plan

Project Implementation Stage

Local Government Level • LCO Formation

• Project Socialization • RP4D Preparation • Partnership Facilitation • Monitoring and Evaluation • Project Sustainability Facilitation

Community Level • District and sub-district Socialization

• Problem Reflection • Community Organization preparation

and formation • Site survey

• Neighborhood Upgrading Plan

preparation • NUP Implementation

• Participatory Evaluation

Preparation Stage

Planning Stage Implementation Stage

Evaluation Stage P

Figure 1.1. Project Cycle of NUSSP Source : General Guidelines of Neighborhood Upgrading Shelter Sector Project

Project implementation. Therefore, this research can provide information, opinion, suggestion, and recommendation to government in order to enhance community participation in slum upgrading activities.

The benefit of this research is to try to enrich the field of participatory development approach in the implementation of slum upgrading project. For government, the result of this research can provide a reference on the role of government in implementing slum upgrading project based on community. For local communities, the result of this research can be used as an input to support local communities’ roles in the implementation of settlement improvement project.

CHAPTER 2 HOUSING AND SETTLEMENT DEVELOPMENT IN INDONESIA

As part of the international community, the development of housing and settlements in Indonesia cannot be separated from global agenda on housing and settlements. Indonesia has agreed to participate in implementing sustainable development principles, which is declared together in the United Nations Conference on Environment and Development Rio de Janeiro (1992). Besides, in the Agenda 21 and Istanbul Declaration has also expressed the need of development strategy, which emphasizes community empowerment in the housing and settlements development process.

(1) Housing and Settlement Development Policy

Millennium Declaration and the Declaration of "Cities without Slums Initiative" has emphasized that slums area must be reduced in urban area. To reduce slum area, the declaration needs to be followed up by the concrete steps to achieve urban area without slums, which emphasizes on empowerment strategy through the participation of all stakeholders and community as the main actors.

On the basis of Act no 4 Year 1992 on Housing and Settlement, a healthy and safe housing and settlement is one of the human’s basic needs and a key factor in the improvement the dignity and self-respect, quality of life and the welfare of the On the basis of Act no 4 Year 1992 on Housing and Settlement, a healthy and safe housing and settlement is one of the human’s basic needs and a key factor in the improvement the dignity and self-respect, quality of life and the welfare of the

Derived from Act no 4 Year 1992 on Housing and Settlement, Indonesia Government set up National Policy and Strategy of Housing and Settlement as a references in developing housing and settlement. This national policy was launched in 2002 based on Minister of Settlement and Regional Infrastructure Decree Number 217/KPTS/M/2002 on National Policy and Strategy of Housing and Settlement. This National Policy and Strategy for Housing and Settlement are intended as a guide in the preparation of technical strategy planning, programming, and activities that are relevant and / or in the development of housing and settlements. The goal of this policy is to promote the achievement of targets for housing and settlement sector development through increasing the integrated planning, programming, and implementing of housing and settlement development.

The vision of National Policy and Strategy of Housing and Settlements is to realize that every people (household) in Indonesia is able to meet their needs of a decent and affordable house in a healthy environment, safe, harmonious, and sustainable condition. This vision will be implemented through various missions, which are: 1) empower communities and other key actors in housing and settlements development, 2) facilitate and promote the development of a conducive atmosphere in housing and settlements development, 3) optimize utilization of supporting resources in housing and settlements development. There are policies and strategies The vision of National Policy and Strategy of Housing and Settlements is to realize that every people (household) in Indonesia is able to meet their needs of a decent and affordable house in a healthy environment, safe, harmonious, and sustainable condition. This vision will be implemented through various missions, which are: 1) empower communities and other key actors in housing and settlements development, 2) facilitate and promote the development of a conducive atmosphere in housing and settlements development, 3) optimize utilization of supporting resources in housing and settlements development. There are policies and strategies

1. Policy One: Institutionalize housing and settlement development by involving communities as key actors. It will be achieved by 1) preparing, developing, and socializing the statute in housing and settlement development, 2) strengthening housing and settlements institution which are reliable and responsive, and 3) construction and safety control of building and environment

2. Policies Two: Achieving the fulfillment of housing needs for the whole community, as one of the basic human needs. It will be achieved by: 1) developing financing system and empowering the housing market (primary market and secondary market), 2) developing residential developments, based on community self-reliance, 3) developing various types and mechanisms of housing subsidy, 4) empowering the economic enterprises of low income families, 5) fulfilling the needs of housing and human settlements due to the impact of natural disasters and social conflict, and 6) managing buildings and state houses

3. Policy Three: Achieving a healthy, safe, balanced and sustainable housing development to support community productivity. It will be achieved by 1) improving settlements environmental quality, especially in urban slums and coastal area, 2) developing basic facilities and infrastructure settlement, and 3) implementing decent housing environment.

In order to improve settlements environmental quality in urban slums, it can be achieved by slums area planning and rehabilitation, basic infrastructure and facilities improvement, and rental housing development, including rented simple apartment in urban areas.

Vision

Every person (household) in Indonesia is able to meet

his needs of a decent and affordable house

Mission

1) empower communities and other key actors 2) facilitate and encourage the creation of a

conducive climate

3) optimize utilization of supporting resources

Policy 1 Policy 2 Policy 3

Institutionalize housing and

Achieving the fulfillment of housing

Achieving a healthy, safe,

settlement development needs for the whole community

harmonious and sustainable housing development to support

community productivity • preparing, developing, and

Operational Strategy Operational Strategy

• developing financing system and

Operational Strategy • strengthening housing and

socializing the regulation empowering the housing market

• improving settlements settlements institution

• developing residential

environmental quality,

developments

• construction and safety

especially in urban slums supervision

• developing various types and

mechanisms of housing subsidy

and coastal area

• empowering the economic

• developing basic facilities

enterprises

and infrastructure settlement

• fulfilling the needs of housing and

• implementing good housing

settlements caused by natural

environment

disasters and social conflict

• managing buildings and state houses

Participatory Development Concept based on Community self-reliance

Figure 2.1. National Policy and Strategy for Housing and Settlement Development Source : Minister of Settlement and Regional Infrastructure Decree No.217/KPTS/M/2002 on National

Policy and Strategy for Housing and Settlement Development

In slum areas, the efforts to improve the settlement environment quality cannot

be confined on the physical aspects of their environment, such as construction and improvement of basic settlement facilities and infrastructure, but must also be be confined on the physical aspects of their environment, such as construction and improvement of basic settlement facilities and infrastructure, but must also be

According to National Medium-term Development Plan 2004, infrastructure development is decided as an integral part of national development. Indonesia Government has realized that infrastructure is the generator for economic growth. The availability of housing and settlements, including water supply and sanitation, and sustainability management of water resources has become the key factor in community welfare improvement.

In Indonesia, housing development, particularly for lower middle-income people, was spearheaded by the Perumnas as a government-owned developer by constructing new housing in Depok in the mid-1970s which was subsequently followed by a private developer. The main problems faced by Indonesia Government in housing and settlement development are limited capability to provide the infrastructure and housing and the increased area of slums in urban area. Poor people migrate to the cities for looking for jobs. It create a huge need of accommodation,

including housing, public facilities, and infrastructure 3 . The provision of basic facilities and infrastructure by the government to

settlement area, which is inhabited by low-income people, is intended to decrease the

3 In Indonesia, the urban population is increase rapidly. In 1980, urban population is 22,3%, while 30,9% in 1990, and 42,4% in 2000. It is expected that 54% of Indonesia population is in urban

area. For more detail information, see Noveria, Mita. 2009. Demography and Urbanization Phenomenon on Housing and Settlement Development: An Agenda of Management and Control Policy. 2009.

selling price of houses in the area. It is expected that inhabitants, especially low- income people, have the ability to access decent houses in healthy area. However, the government's ability to support the provision of infrastructure and facilities are still limited. This factor has become one of the bottlenecks in the provision of housing and its facilities and infrastructure for low-income people and triggers a decline in quality of the area. These conditions usually worsen, and the area becomes new slums area.

In 1996, the slum area was 40 053 hectares and in 2000 increased to 47 500 hectares, which is spread over 10 000 locations and inhabited by an estimated 17.2 million people (National Medium-term Development Plan 2004-2009). Slum area tends to increase annually in line with population growth and increasingly uncontrolled growth of major cities. In addition, the growth of slums (in downtown and periphery area) is also triggered by the limitation of society capabilities and awareness for improving their settlements condition. The other factors are the disharmony between the structure and infrastructure of the city, especially transportation network and residential area.

(2) Participatory Development Project in Indonesia

In Indonesia, housing and settlements is implemented by emphasizing on the achievement of development objectives, not only physical aspect but also social and economic aspects. The Tridaya concept, which has evolved as a principle of implementation of housing and settlement development, could be developed as an approach to sustainable housing and settlement development approach at the local In Indonesia, housing and settlements is implemented by emphasizing on the achievement of development objectives, not only physical aspect but also social and economic aspects. The Tridaya concept, which has evolved as a principle of implementation of housing and settlement development, could be developed as an approach to sustainable housing and settlement development approach at the local

the natural environment) 4 . As mentioned above, the third policy of National Policy and Strategy of Housing

and Settlement is to create a healthy, safe, balanced and sustainable housing development to support community productivity. This third policy has been tried to

be achieved by implementing some project as efforts to improve the quality of life of low income people. These projects were intended not only to improve the physical aspects of their environment, such as construction and improvement of basic settlement facilities and infrastructure, but must also to re-actualize participatory development concept, which emphasize on community self-reliance. Furthermore, local autonomy policy, which has been launched since 1999, requires creative and innovative leadership of local actors. Community must have innovative to explore

local potential resources, including in housing and settlement sector 5 . Neighborhood Upgrading Shelter Sector Project is one of government efforts in

handling settlement problem by using participatory development approach. Other

4 Operational process of Tridaya concept can be seen on Widjanarko, Agoes. Environmentally Sound and Sustainable Housing Development: Policy and Approaches in Indonesia. Asian Forum,

2003. 5 Since 1999, local autonomy has been launched in Indonesia. Local autonomy policy is designed to

create more effective and contextual response to local people needs. Some of central government authority on housing and settlement sector have been delivered to be handled by local government. For more detail information, see Yudohusodo, Siswono. Integrated Settlement and Urban Development Management . Paper for National Congress of Housing and Settlement II. 2009.

projects, which use participatory development approach, are The National Program of Community Empowerment ‘Mandiri’ for Rural Area (Rural PNPM Project) and The National Program of Community Empowerment ‘Mandiri’ for Urban Area (Urban PNPM Project). These participatory development projects were and have been implemented in Kasemen District Serang City.

• Neighborhood Upgrading Shelter Sector Project

In 2004, Indonesia Government launched Neighborhood Upgrading Shelter Sector Project which is intended to decrease poverty and improve the quality of life poverty in urban areas. The urbanization makes almost all of poor people are living in informal areas and experiencing deteriorated level of services and infrastructure provided by local government.

The vision of Neighborhood Upgrading Shelter Sector Project is to make empowered local government and community and have the ability to get decent, healthy, and productive housing and settlement environment. Beneficiaries of this project are low income people and local government. Low income family, who live in slums area, are included as the target group. They receive technical assistance for identifying and planning of their needs, training, and experience in actualizing their resources in order to improve settlement environment. In this project, local government not only as implementer at the local level, but also could become as the target group. Local government will have practical experience together with residents in developing participatory settlement development.

As target location, Neighborhood Upgrading Shelter Sector Project is implemented in sub-district which has slums area in 32 city/regencies. The cities/regencies must have the commitment to implement poverty reduction program, commitment to build local settlement institution in a participatory way, commitment to support local annual budget, and present community needs.

Project fund can be used to construct street lighting, drainage, toilets and communal sanitation facilities such as group septic tanks, water mains and public taps, waste management, and community facilities. These basic infrastructures are identified through a participatory neighborhood upgrading plan (NUP) performed by communities.

Directorate General of Human Settlement Ministry of Public Works is the project Executing Agency. It forms the Project Steering Committee, chaired by the National Development Planning Board. Meetings of the director-level of Project Steering Committee are held at least quarterly to discuss project progres. These meetings also approve annual project budgets and semiannual progress reports. Directorate General of Human Settlements acts as the technical secretariat and its services to the Project in accordance with the central Government’s role (such as coordinating, monitoring, and providing technical assistance resources).

The activities of NUSSP implementation at local community level will be assisted by facilitator team. Each facilitator team consists of some field workers that are able and have enough field experiences. In sub-district district level, there is CBO built through a series of community participatory approach. The roles and responsibilities of CBO are 1) responsible to demonstrate local community aspirations in the implementation of NUSSP, 2) organize Neighborhood Upgrading

Plan participatory process, 3) give examples in implementing values and norms on the implementation of NUSSP, and 4) develop a working partnership in order to empower local community. Some management/development units are formed that will work in all stages of NUSSP implementation activities, which are Environmental Management Unit, Financial Management Unit, and Social Development Unit.

-participatory monitoring

District and sub-district

-infrastructure takes over

Socialization

Training for OM

Community Meeting

NUP Implementation

for preparing project

-Community Cadre selection and training

-NUP socialization

Community Organization

-monitoring team formation

preparation

Neighborhood Upgrading Plan preparation

-problem reflection -community discussion

Community-based Organization formation

-CBO training and

Site survey

legalization -survey team selection and training

-data collection (settlement condition)

Evaluation

Housing and Settlement Development Plan Review

Next phase implementation

Figure 2.2. Project Cycle of NUSSP at Community Level Source : General Guidelines of Neighborhood Upgrading Shelter Sector

• The National Program of Community Empowerment ‘Mandiri’ for Rural Area (Rural PNPM Project)

Indonesia Government has launched The National Program of Community Empowerment ‘Mandiri’ for Rural Area (Rural PNPM) to accelerate poverty reduction in integrated and sustainable way. The National Program of Community Empowerment ‘Mandiri’ for Rural Area is the improvement of Kecamatan Development Project. The vision of Rural PNPM Project is to promote community prosperity (basic needs are met) and community self-reliance (able to organize themselves and mobilize local resources.

Rural PNPM Project aims to increase prosperity and job opportunities for low income family in rural areas. It is achieved by encouraging autonomy in making a decision and managing project development. Target locations of Rural PNPM Program are districts in a rural area that have underdeveloped sub-district and poor people. Target Groups are poor households in rural areas, community institutions in rural areas, and local government institutions.

Community Direct Assistance Fund is allocated for each district formulated by using two ways, specifically fund allocation based on the number of left behind sub- district and fund allocation based on the proportion of poor people and the population of the district. Project fund comes from National Annual Budget (APBN), Local Annual Budget (APBD), Community, and Private Sector.

Each sub-district in participating district has a chance to participate in Rural PNPM Project. For the district that is selected based on the number of left behind sub-district, infrastructure proposed by left behind sub-district will be prioritized to Each sub-district in participating district has a chance to participate in Rural PNPM Project. For the district that is selected based on the number of left behind sub-district, infrastructure proposed by left behind sub-district will be prioritized to

Self-reliance is the willingness and ability of the community to contribute as part of a sense of belongings to Rural PNPM Project. Community contribution is one of community participation in Rural PNPM Project activity by giving fund, raw material, or worker.

Community is the key actor in the implementation of Rural PNPM Project, from preparation, planning, implementation, and evaluation stage. Other actors in sub- district, district and city government play their roles as facilitator.

District Meeting

Evaluation

for Project Socialization

-operational and maintenance

Sub-district Meeting

Sub-district Meeting for infrastructure take

over -sub-district team

formation -training

-fund disbursement

-supervision Extracting Ideas

Sub-district Meeting for project

Sub-district Meeting implementation report

for Project Planning

-writing proposal implementation

-preparing for

-verifying proposal -fund disbursement

-supervision District Meeting Sub-district Meeting

for Prioritizing Proposal For socializing selected

Proposal -district management unit formation

-designing and District Meeting budgeting proposal

for Selecting Proposal

Local Government

Development planning

forum

process

Figure 2.3. Project Cycle of Rural PNPM Project at Community Level Source : Operational Technical Manual of Rural PNPM Project

• The National Program of Community Empowerment ‘Mandiri’ for Urban Area (Urban PNPM Project)

Indonesia Government launched The National Program of Community Empowerment ‘Mandiri’ for Urban Area (Urban PNPM Project) in 2008. The

National Program of Community Empowerment ‘Mandiri’ for Urban Area has adopted Urban Poverty PNPM Project, which has been implemented since 1999, to build self-reliance of community and local government in sustainable poverty reduction. This project is highly strategic because it sets the basic of self-reliance community. Community leadership organization is developed as resident representative to promote social capital development in the future and also prepare medium term community program of poverty reduction. There are some targets of Urban PNPM Project implementation.

a. To develop the community self-help institutions that can be trusted, representative, and accountable to encourage community participation.

b. To provide the medium-term development plan of poverty reduction in oerder to achieve the synergy of all poverty reduction project based on community needs

c. To develop the community self-help institutions forum at district level and city level to ensure that poverty reduction project can be integrated

d. To establish the local government fund contribution in Urban PNPM Project implementation in accordance with local fiscal capacity.

Target location of participating district in Urban PNPM Project implementation, based on these steps which are 1) district has kelurahan more than desa and the district has become the capital city of Kabupaten, 2) district has more than 10% of poor households, and 3) sub-district has more than 20% of poor households. All proposed target location will be verified and decided by the PNPM technical team. Target Groups of Urban PNPM Project are 1) residents who live in participating sub- district and Community Self-reliance, 2) local government official, and related stakeholder (individual, university, NGO, mass media). Direct beneficiaries of the Target location of participating district in Urban PNPM Project implementation, based on these steps which are 1) district has kelurahan more than desa and the district has become the capital city of Kabupaten, 2) district has more than 10% of poor households, and 3) sub-district has more than 20% of poor households. All proposed target location will be verified and decided by the PNPM technical team. Target Groups of Urban PNPM Project are 1) residents who live in participating sub- district and Community Self-reliance, 2) local government official, and related stakeholder (individual, university, NGO, mass media). Direct beneficiaries of the

District and sub- district meeting (Socialization)

-monitoring -evaluation

Community meeting Project

-sub-district meeting for -organize community

project socialization self-help group

Poverty Reflection Sub-district Medium-

-community awareness term Development -community commitment Plan formulation

Self-help Mapping -organize local community

institution forum at district -data collection (poor level

people, problem, potency, existing local institution,

Local Community

needs

Institution formation

Project Review

MTDP Reorientation

Program Integration

Development planning

process

Figure 2.4. Project Cycle of Urban PNPM Project at Community Level Source : Operational General Guidelines of Urban PNPM Project Figure 2.4. Project Cycle of Urban PNPM Project at Community Level Source : Operational General Guidelines of Urban PNPM Project

b. Social Development Component (i.e. community self-reliance training to strengthen the local organization, health and education for the low income families)

c. Economic Development Component (i.e. productive business activity and increased capital)

In the implementation, Ministry Public Works act as Executing Agency and establish Project Management Unit to execute daily operational activity. Project Management Unit is supported by National Management Consultant. In community level, community is the main actor. Community self-reliance institution is established by the community, to ensure that all residents have opportunity to involve in decision making process.

(3) Community Participation on Development

Growth-centered development puts economic growth ahead of people and ecology on which their well-being depends (Korten 1990). Based on his experience more than thirty years in Asia, Latin America, and Africa as a consultant on development project management, alternative development theory, and the strategic roles of non-government organizations, Korten proposes alternative vision to make the well-being of people and the living systems of the planet come first. Korten Growth-centered development puts economic growth ahead of people and ecology on which their well-being depends (Korten 1990). Based on his experience more than thirty years in Asia, Latin America, and Africa as a consultant on development project management, alternative development theory, and the strategic roles of non-government organizations, Korten proposes alternative vision to make the well-being of people and the living systems of the planet come first. Korten

a society. The above definition is emphasized on the development process and focused on personal and institutional capacity. It also embodies the principles of justice, sustainability, and inclusiveness. (Korten, 1990).

Kenneth Wilkinson states that community can be defined as including three elements: territory or place, social organizations or institutions, and social interaction on matters concerning a common interest. The above definition suggests that community is a contingent phenomenon, dependent on a number of conditions to achieve social interactions in pursuit of mutual interest. Structural change in the community is involved in the development process, especially in how resources are used, the functioning of institutions, and the distribution of resources in the community (Green and Haines. 2002).

Furthermore, Cernea suggests that development projects are purposive planned interventions that are commonly used to promote economic development. He also said that the project approach was considerably opened up to sociological contributions as policies turned toward alleviating poverty through rural development. Perhaps for the first time the concept of the target group –the poor, those with an income below the absolute or relative threshold of poverty- was brought to the front. The shift from an emphasis on physical infrastructures to Furthermore, Cernea suggests that development projects are purposive planned interventions that are commonly used to promote economic development. He also said that the project approach was considerably opened up to sociological contributions as policies turned toward alleviating poverty through rural development. Perhaps for the first time the concept of the target group –the poor, those with an income below the absolute or relative threshold of poverty- was brought to the front. The shift from an emphasis on physical infrastructures to

Meanwhile, UN Economic and Social Council mentions that community development is the process by which the efforts of the people themselves are united with those of governmental authorities to improve the economic, social, and cultural conditions of communities, to integrate these communities into the life of the nation, and to enable them to contribute fully to national progress (Thapar 1958). It is in line with community development process, which is proposed by Green and Haines (2002). They suggest that community development process is a linear process that begins with community organizing and moves on to visioning, planning, and finally implementation and evaluation. As Kahn reminded in Green and Haines (2002), organizing is a way for people to work together to solve a problem. Community organizing is distinct from other forms of organizing because it focuses on mobilizing people in a specific area. Community visioning is usable in establishing a vision of development by conducting broad community participation. A community vision occurs when the group of people tries to reach a consensus about the future of

a place. The visioning process can be done by a neighborhood, a whole city, or by an organization. As a result of the planning process, action plan is an explanation of activities which is needed to be done by the community to move the community achieve their vision. For each project, there should be a comprehensive plan of what needs to be done. Action plans should be prepared based on agreed strategies and goals. Evaluation focuses on the specific accomplishments of the process. A distinction should be made between measuring outputs and outcomes.

New Policies

New Organization Community

Organizing

Implementation and

Evaluation Visioning

Create benchmark Vision Statement

and indicators

Planning Create an action plan at the simplest to a comprehensive plan

Figure 2.5. Community Development Process Source : Green and Haines. 2002.

By looking at community development as defined by United Nations, it needs community participation to manage resources utilization, plays institutions function, and redistribute resources to community. For Arnstein, citizen participation is a categorical term for citizen power. She has also defined citizen participation as the redistribution of power that enables the have-not citizens, presently excluded from the political and economic processes, to be deliberately included in the future (Arnstein 1969).

Based on his experiences on rural development, Uphoff (1985) explain that World Bank strongly emphasized the need for community participation. Community participation is important, not only to give more decision-making influence to program beneficiaries, but also to ensure that the program infrastructure and services achieve their original intension. Uphoff (1998) also says that organizational Based on his experiences on rural development, Uphoff (1985) explain that World Bank strongly emphasized the need for community participation. Community participation is important, not only to give more decision-making influence to program beneficiaries, but also to ensure that the program infrastructure and services achieve their original intension. Uphoff (1998) also says that organizational

There are different ways in which rural people can participate in their own development, the process best begins with decision making, which is the essence of empowerment, such as the principle needs and problems, promising and reasonable solutions, effective and accepted technology. There is increasing appreciation of the value of having local or indigenous knowledge inform development plans and decisions. Better decisions can be made if local people add their knowledge to the development process. Outside knowledge become more effective when it is combined with local knowledge. It is more likely that local people will accept responsibility for carrying out plans and programs if they have been actively involved in shaping these decisions (Uphoff. 1998).