Indonesia: Program for Community Empowerment in Rural Areas (PNPM Rural)

January 21, 2009

The World Bank


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.



Improving welfare through poverty alleviation and unemployment reduction is the main development priority. The issues of poverty and unemployment in Indonesia are, among others:

  • Though 2.21 million lower than in 2007, the number 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 of unemployed people in Indonesia is still 9.4 million or 8.46% of the total Indonesian workforce (BPS, February 2008).
  • Access to health services, education, housing and settlement, infrastructure, financing/credit, and information for the poor is still limited.
  • Slum areas and poor enclaves in urban areas are widespread.



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





  • 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. 

Last Updated: Jan 21, 2009

roads rehabilitated

project map