|Sector / Subsector
Agriculture, natural resources and rural development
- Rural water supply services
- Pre-primary and primary
- Health system development
Public sector management
- Social protection initiatives
- Road transport (non-urban)
The Project forms part of the Government of Indonesia's ongoing flagship poverty reduction program the National Program for Community Empowerment (PNPM Mandiri).
The Asian Development Bank (ADB) supports the PNPM Mandiri through the Rural Infrastructure Support to PNPM Mandiri Project I
(RIS-PNPM I), which included community facilitation and mobilization, and rural infrastructure support in the four provinces of Jambi, Lampung, Riau, and South Sumatra. The Project continues the support for RIS-PNPM I, financing two cycles of village planning and block grants in about 1,500 villages in 215 kecamatans in four provinces. The Project follows a community-driven development approach and will empower communities; strengthen their capacity to prioritize, design, implement, and monitor community-based projects; and provide block grants to finance community-identified needs and priorities.
|Project Rationale and Linkage to Country/Regional Strategy
Poverty is particularly high in rural areas of Indonesia, where more than two-thirds of the country's poor people live. The causes of rural poverty include lack of access to basic services such as health, education, safe water, and sanitation; absence of economic opportunities; limited access to capital; and poor rural connectivity and infrastructure. The rural population is vulnerable to external shocks and the large numbers of "near poor" are at risk of falling back into poverty in the event of sickness, natural disaster, harvest failure, rising food prices, or economic recession. They also have extremely limited access to basic services (e.g., health and education), capital, and infrastructure. The incidence of
poverty continues to be much higher in rural areas (17.4%) than in urban areas (10.7%). The Government of Indonesia has made poverty reduction a priority. Its Medium-Term Development Plan (RPJM) 2004 2009 provides strategic directions for addressing poverty and achieving the Millennium Development Goals (MDGs). The Government has also issued a poverty reduction action plan in line with the National Poverty Reduction Strategy (SNPK), which emphasizes increasing employment opportunities and accelerating poverty reduction. To promote further inclusive growth, the Government launched a nationwide poverty reduction program in August 2006: the National Program for Community Empowerment (PNPM Mandiri). PNPM Mandiri aims to reduce poverty by promoting community participation in development planning and management, and delivery of basic services to achieve the MDG targets by 2015. ADB's Indonesia country strategy and program, 2006 2009 concludes that the country's principal challenge continues to be poverty reduction and eliminating the vulnerability of large sections of the population. To meet this challenge, the Government must achieve higher levels of sustainable economic growth, improve public sector management, boost development spending, and accelerate progress toward achieving the MDGs. Strengthening institutional and human capacities at all levels is needed to realize the development objectives and improve social service delivery. ADB's growing experience with community-based projects places it in a strategic position to support the Government in scaling up and effectively implementing the PNPM Mandiri Program.