Indonesia: A Nationwide Community Program (PNPM) Peduli: Caring for the Invisible

Challenge
Inclusive growth and realizing the potential of all citizens for economic and social development is a top priority for the Indonesian government, as reflected in the National Development Plan (RPJMN). At the same time however, the government acknowledges that marginalized communities are an under-utilized national asset, and often benefit less than others from poverty reduction programs and public services.

The PNPM Peduli is about “unlocking” the potential of marginalized communities by empowering them to become more self-reliant and creating opportunities to improve their socio-economic conditions. Indonesian civil society organizations (CSOs) have a comparative advantage and are well placed at the grassroots to reach these groups. Many of these CSOs, however, have limited capacity to provide quality mentoring and training and are often operating on a shoe-string budget. Furthermore, addressing the root causes of social inclusion are not just a matter of improving livelihoods, but about fully integrating individuals into civic life—increasing their participation, breaking down social barriers, reversing stigmas and changing mid-sets.

Solution
The PNPM Peduli is about empowering the marginalized to become more self-reliant, live more dignified lives and improve the quality of their lives. The program has established grant making to national and local Indonesian CSOs, and is reaching a diverse range of marginalized individuals across rural and urban parts of Indonesia. In June 2011, grants were awarded to three national CSOs, acting as Executing Organizations (EOs): the Association for Community Empowerment; the Partnership for Governance (Kemitraan); and Lakpesdam, the research and development institute of the Nahdlatul Ulama (NU)—Indonesia’s largest faith-based organization. The three EOs then provide sub-grants to local CSOs or branches of NU to support activities for marginalized groups, and to build the capacity of local CSO partners. Local activities began in October 2011; in the pilot phase, the program is supporting 72 Indonesian organizations working across in 231 villages in 91 districts across 24 provinces. Activities reach more than 9,000 marginalized individuals connected to 404 community-based groups.

Results
In its pilot phase the PNPM Peduli has already produced several significant results, including:

• Since January 2012, CSOs/NU branches have supported the establishment of 71 business groups (involving 1,600 people) being run by marginalized groups, including tailoring, catering, brick making, handicrafts, organic farming, organic poultry, seaweed farming and trading;
• Five CSOs have provided 17 women’s groups (a total of 385 women) with business equipment, supplies and rented space, business training and skills training to help start up their own businesses through a revolving loan arrangement. These groups  are now running laundries, coffee shops, phone card counters and food production;
• In East Jakarta, 182 street children have received birth certificates while 266 parents have received Jamkesmas cards (health cards), and 150 school drop-outs are now attending non-formal education classes;
• In Jambi province, 75 indigenous groups in three Jambi districts have received health checks for the first time from local health service providers;
• In three districts of East Nusa Tenggara, 134 men and women in remote locations were tested by a mobile clinic for sexually transmitted diseases, including HIV and AIDS. Other services extended include prevention education, distribution of free condoms, sexually transmitted disease (STD) treatment and HIV/AIDS treatment.

Bank Group Contribution
The PNPM Peduli is a government-led, multi-donor trust funded program being delivered as a ‘pilot initative’ through the PNPM Support Facility (PSF), which is managed by the World Bank. An initial budget of US$4,215,000 was approved by the Joint Management Committee in January 2010, to develop the project design, operational procedures and award grants to an initial three EOs for the implementation of phase 1. A further US$5.5 million was allocated in April 2012, taking the total investment in the PNPM Peduli in the pilot phase to US$9,715,000.

Partners
Since its inception, Peduli has partnered with 72 Indonesian CSOs comprising the 3 EOs, 3 Intermediary Partners (IPs), 36 local CSOs and 30 branches of Lakpesdam NU. These partners are working in 91 districts across 24 provinces with a wide range of marginalized groups, including indigenous people, female micro-entrepreneurs, farmers and fishers, garbage collectors, street children, sex workers, ex-political prisoners, migrant workers, women and children at risk of trafficking, gay and transgender people, survivors of domestic violence, children in prison and people living with HIV.

The PNPM Support Facility is funded by the Australian Agency for International Development (AusAID), the Canadian International Development Agency (CIDA), the Danish International Development Agency (DANIDA), the U.S. Agency for International Development, the European Union, the Dutch Government, UKAID, and managed by the World Bank.

Moving Forward
Between August and October 2012, an external review team conducted an assessment of the program to prepare for full implementation in phase II. The assessment concluded that the PNPM Peduli is on track—the pilot has established a set of relationships and business systems that will support it to move forward in developing and understanding effective approaches to reaching and empowering marginalized groups in Indonesia in the future. Moving forward, based on learning and recommendations from this review, national CSOs will focus on taking evidence from the field to develop a body of knowledge on pathways to inclusion. The aim is that this can be translated into policy advice for the government to strengthen those line ministries trying to reach target populations currently excluded from public services and systems.

Beneficiaries
"Before when I passed every village, street people would whisper, 'look out jablay*'. I was not considered human. Through Bandung Wangi, I met friends, learned to speak in public, and now even have a pulsa counter. It is like a dream." Ani was a sex worker in Jatinegara East Jakarta. She tried to find alternative work, but people knew she was a sex worker and wouldn’t employ her. Under the PNPM Peduli, a local CSO (Bandung Wangi) provided her and 20 other female sex workers with skills and business training. Together with four friends, Ani has now left sex work and they jointly run a phone card counter. She doesn’t make as much money as before, but notes she is safe, no longer a victim of sexual abuse or violence, and has improved her health. Bandung Wangi provided the business group with equipment and rental space, and provides ongoing advice to the business. These women are now paying back the loan to Bandung Wangi for the equipment and supplies.

*” Jablay‟ is derogatory slang word that refers to ones need for sexual interaction