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Indonesia: Program for Community Empowerment in Rural Areas                                   January 21, 2009




 Empowering Local Communities to Define Their Priorities


Overview
Rural PNPM Mandiri is a core part of PNPM Mandiri and is developed from the Kecamatan
Development Program (KDP) launched in 1998. The Rural PNPM Mandiri overall objective is to
reduce 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.




Challenges
Improving welfare through poverty alleviation and
                                                                More Results
unemployment reduction is the main development priority.
The issues of poverty and unemployment in Indonesia are,

                                                                71,000
among others:

       Though 2.21 million lower than in 2007, the number


                                                                km
       of poor people in Indonesia is still 34.96 million or
       15.42% of the Indonesian population (BPS, March
       2008).
       Though 1.12 million lower than in 2007, the number       roads rehabilitated
       of unemployed people in Indonesia is still 9.4 million
       or 8.46% of the total Indonesian workforce (BPS,


                                                                15,000
       February 2008).
       Access to health services, education, housing and
       settlement, infrastructure, financing/credit, and
       information for the poor is still limited.               school rehabilitated
       Slum areas and poor enclaves in urban areas are
       widespread.
                                                                MORE INFORMATION

Approach                                                         PNPM Rural I

Community Block Grants (BLM) allocated to kecamatans             PNPM Rural II
ranges from IDR 1-3 billion per year, depending on the           PNPM Rural III
population in the kecamatan. The selection of activities is
                                                                 PNPM Rural IV
open except for items specifically excluded through the
project’s negative list. In PNPM, district governments with      World Bank and PNPM
lower fiscal capacities provide contributions of 20% of the      Pilot Project: PNPM Green
kecamatan grant and those with higher fiscal capacity
provide contribution 50% from their own budgetary
resources.
Results

       Km of farm/rural roads built: 68,821

       No. of bridges built: 8,142

       No. of irrigation systems built: 6,527

       No. of clean water systems built: 29,701

       No. of public toilets and washing facilities built: 16,101

       No. of school buildings built or rehabilitated: 21,855

       No. of health facilities built or rehabilitated: 10,839

       No. of village electricity units built: 1,401

       No. of education activities supported: 120,590

       No. of health activities supported: 1,301

       No. of women revolving loan fund activities supported: 258,578


Bank Contribution
Total funding for the PNPM–Rural program, which began in 2008 is approximately US$ 4.4
billion, inclusive of US$ 1.8 billion in World Bank loans and US$ 2.5 billion of Indonesian
Government funds. In July 2011, World Bank approved a US$ 531 million loan to continue its
support to PNPM–Rural (through PNPM–Rural IV).

Toward the Future
Rural PNPM Mandiri area will be implemented in 4,371 sub district in 32 provinces across
Indonesia. Total national budget for 2009 is IDR 6,987 trillion, including contributions from
donors.