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Catalytic Local Governance Instruments and Measures for Alleviating Poverty in Eastern Indonesia:

Empirical Experience of Mataram City1 Dr. Astia Dendi2, Drs. HM. Ainul Asikin, MSi.

Abstract

This paper reviews the concept, discusses prospects of and the lessons learned from the evolving local governance instruments to reducing poverty incidence in an urban context in the eastern region of Indonesia based on the case of Kota Mataram- Nusa Tenggara Barat province. As a newly established municipality in Nusa Tenggara Barat, the local governance of Mataram has been recognized in the region for its persistent effort to promote good governance and participatory approach in development. However, a relatively high poverty incidence remains one of the pressing problems facing Kota Mataram. The local government of Mataram confronted a number of urban poverty problems which, among others, involved the low quality of human resources, the existence of the slum settlement, insufficient settlement infrastructure, the high rate of unemployment, and gender inequality. To address these problems, the municipal government of Mataram adopted a more catalytic, transparent and participatory mode of governance of the provision of public services. It includes the establishment of stakeholder dialog (stakeholder fora) to foster participation, transparency and allocation of responsibility among stakeholders; the instrument for a better identification of the poor (better targeting of the program); and the Community Action Planning (CAP) tool. While the main elements of the approach, namely the CAP and stakeholder fora, have been evolving for several years, its innovation to enhance transparency and better targeting the poor in the urban slum context is recent. The prospect of the approach to confronting poverty problems was remarkable, for which the Provincial Government of Nusa Tenggara Barat awarded the Mayor of Mataram City the first prize of the 2007’s Good Governance Award. The paper will also discuss the lessons learned and suggest measures to pursue a broader scale of implementation and produce significant benefits for the poor people (women and men).

1 The authors gratefully acknowledge the German Technical Cooperation in Nusa Tenggara Barat province, namely GTZ-Good Local Governance (GLG) for providing information and sponsoring authors’ participation to present this paper at the international seminar organized by Indonesian Regional Science Association (IRSA) held in Palembang (Indonesia) from 31st of July-2nd of August 2008. We thank the provincial government of Nusa Tenggara Barat and government of Mataram city for the provision of data and other relevant information, as well as to the intermediary organizations and community members in Sembalun neighborhood for their enthusiasm and contributions in the learning process.

2 Contact: Dr. Astia Dendi, Senior Regional Development Adviser for GTZ-Good Local Governance in Nusa Tenggara Barat. Email: dendi@gtz.or.id; Telephone 0370 641749; Fax 0370 621293.

 

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Introduction Within the framework of decentralization, a lot of efforts toward better service delivery, sustainable growth and poverty reduction have been undertaken in Indonesia. Local governments, being at the front line of service delivery, are the proponents of the democratic process by involving citizens into the local governance process. Indeed, a multi-level-approach and cooperation between governmental representatives, the private economic sector and of civil society are necessary. However, the implementation of decentralization and governance policies is not always a smooth process and significant challenges remain. Therefore, application of good governance criteria (accountability, transparency and participation) in local administrations needs to be increased. Accordingly, the degree of coverage and the quality of selected public services, particularly health, education and the business climate, should be improved. These call for a set of capacity development for and performance measurement tools of the local governments. In an attempt to address the above challenges, within the framework of German development cooperation in Indonesia, the Good Local Governance (GLG) project supported by GTZ (German Technical Cooperation) has advised the provincial government of Nusa Tenggara Barat to design and implement a pilot instrument to mobilize local governments into a "good governance competition" process. The competition put emphasis on capacity building for local governments and intermediary organizations to enhance transparency and participation in the provision of public services. After the official launch of the competition on 17th of December 2006, all nine district/municipal governments in the province decided to participate. As a first step they were asked to submit appropriate proposals which comprised topics such as the improved delivery of health services, the strengthening of village enterprises for increasing people's welfare or the improvement of the quality of education. The challenge was to accomplish real improvements in a limited time period of three months, to be evaluated by an independent jury. This paper briefly describes the Good Governance Competition approach and reviews the concept, discusses prospects of and the lessons learned from good governance innovation by municipal government of Mataram― the 1st champion of Good Governance Competition in Nusa Tenggara Barat in 2007—for its initiative in poverty reduction in a pilot area, namely Sembalun neighborhood. Regional Context and Urban Poverty Issues Mataram is a decentralized city and capital of Nusa Tenggara Barat province (NTB province) in eastern Indonesia. The province covers a total area area of 20,153.15 square kilometers, includes two main islands namely Lombok and Sumbawa, and consists of nine district/ municipal governments. Based on the 2006 National Socio Economic Survey (BPS and BAPPEDA 2007), the total population of Nusa Tenggara Barat province reached 4,257,306 inhabitants.

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Nusa Tenggara Barat shares a lot of development issues and obstacles of the eastern Indonesian region. While the tremendous development efforts implemented during the last decade hasve produced some significant socio-economic improvements, poverty remains a pervsive problem facing the region. According to official report (Hadar, 2008), poverty incidence in Nusa Tenggara Barat is approximately 25 % (1.12 million people) of the total population, although with a slightly decreasing trend over the last few years. In addition, it is reported that since 1999 the Human Development Index of Nusa Tenggara Barat province is the lowest in Indonesia (BPS, 2008)3. High incidence of malnutrition and high rate of infant and maternal mortality have also been critical issues in NTB. It was reported (BPS, 2004) that West Nusa Tenggara province (NTB) is among the most critical regions in Indonesia in term of infant and maternal mortality rate in which infant mortality rate reached 73.5/ 1000 live birth (national=45/1000 live birth); and maternal mortality rate that reached 370/ 100,000 live birth (national =307/100,000 live birth); Furthermore, The literacy rate for the people of NTB who are above the age of 15 years is 83.7% for men and 71% for women. However, these figures are well below the national average, namely 94.0% for men and 86.8% for women (Hadar, 2008). Established in the end 1993, Mataram city is one of the new decentralized city in eastern Indonesia. In the midle of 2006, its total puplation reached 362,43 inhabitants (BPS and Bappeda, 2007). Recent Official report shows that. The real GRDP per capita is reported Rp. 4,179,980 and Rp. 4,441,547 in 2005 and 2006 respectively and it ahieves a high economic growth above national average, namely 7.79 and 7.89 per cent in 2005 and 2006 respectively (BPS, 2007), but the city also shares the above mentioned issues of eastern Indonesia. Some issues below, among others, reflect critical challenges facing the municipal government of Mataram:

• The exists extensive slum settlement; • Low quality of human resources (many unskilled labors, high rate of

illetaracy); • Insufficient settlement infrastructure; • High rate of unemployment

Indeed, poverty alleviation has been at the forefront of municipal government programs for more than a decade. Along with national strategy, the municipal government of Mataram has implemented a number of pro-poor development interventions in the fields of economic, health and education. The municipal government has launched a popular economic development program, namely ”PER” —Pemberdayaan Ekonomi Rakyat (Empowerment of People Economy). In the field

3  See http://www.bps.co.id 

 

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of public health servi ces, the municipal government has introduced a popular policy that granted free of charges service to the eligible poor. Similarly, the municipal government has also introduced a popular policy in basic education, namely provision of free tuition fee for the children of the eligible poor at any public school in the city. However, while Mataram city has progressively showed some notable achievements in terms of regional economic growth, poverty and unemployment remain a pervasive problem among others. This suggests that there is a need to develop a more cohesive and broad-impact strategies but also cost effective development strategy. Good Governance Award Competition as an Instrument for Capacity Development in Local Governance Objective and Theme The Good Governance Award is created to support capacity development in local governance in the provision of public services. Civil society organizations, the private sector, and the public in general will benefit from improvements made to the day-to-day routine practice of service delivery. In a broader and longer term perspective, the good governance competition pursues following objectives:

• Maintain and extend application of the good governance principles in local governance

• Increase capacity of the local stakeholders in the design and implementation of innovative approach in local governance;

• Increase scope and quality of the provision of public services • Accelerate achievement of better regional human development index;

Citizens eventually will receive better information about the status of specific services and about innovations applied. The award (prize) serves as the incentive to mobilize local governments into the award process. As the Good Governance Award is intended to be a vehicle of promoting good governance practices, an attractive prize will be conferred to the local government selected as winner that shall provide collective benefits to the community in general rather than merely to the officials or institutions. For the first competition in 2007, the provincial government of NTB defined the theme as “Innovation in Transparency and Participation in the Improvement of Public Services Provision toward Accelerating Enhancement of Human Development Index”. Accordingly, this first competition focused its assessment on these two criteria of good governance, namely transparency and participation, out of numerous criteria promoted by UNDP.

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Methodology At provincial level, an organizing committee is established to assume responsibility for the implementation of the pilot process, and a plan of operation is elaborated accordingly. The core objective is to motivate local governments to accomplish measurable improvements in service delivery processes which lead to greater transparency and participation. Competent experts from academia and civil society organizations active in governance help formulate the methodology and the criteria to be applied. Actual improvements that have been implemented within a time period of approximately three months since the registration for the award process are subject to assessment by an independent jury. The independent assessments delivered by an independent jury will provide a comparative perspective and reliable judgments. The Award will be announced in local mass media and information distributed to local governments in the province. The experts and qualified members of intermediary organizations will evaluate the innovations forwarded by candidates and verify the evidence by collecting firsthand information in the field. These inputs shall be considered before jury makes its final decision on the Award Winners. Finally, a public event will be held to provide an opportunity for wider dissemination of results and appreciation of winners Criteria for acceptable proposals and assessment Local government’s innovation for the award competition should fulfilled following criteria:

• It should be an innovation by the local government which has never been awarded in similar competition elsewhere;

• It has a clear link to the objectives of competition, particularly to improve the provision of public services and contribution to increasing regional human development index;

• It can either be an entirely new activity or supporting activities for the on going development programs;

• The proposed activities/ programs should have relevant and measurables performance indicators for short term (3 months) implementation period.

The proposals of local governments are subject to an initial assessment and a final assessment by independent jury. The initial assessment allows the jury to judge relevance of the proposed activities (using the above mentioned criteria) as well as to judge the prospect of its contribution toward the objectives of improvement of public services given the identifiable potentials and limitations of the respective local government. The final assessment, however, is more substantial involving transparancy and participation criteria. The degree of transparancy is measured by applying 5 indicators, namely:

• Accessibility of information by all stakeholders; • Clarity of procedure for each service provided; • Effectiveness of complain or feedback mechanism;

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• Degree of internalization of transparancy principle in the whole processes; • Achievment of a 3-month implementation targets

The degree of participation is measured by applying 10 indicators, namely:

• Involvement of stakeholders in all steps of the development process (planning, implementation, monitoring & evaluation)

• Stakeholder’s identification process • Representation of stakeholders • Perception of the stakeholders regarding their participation • Noticeable relevant collective learning and action events involving local

stakeholders and mass media; • Establishment and reinforcement of procedure/ mechanism for public

participation; • Utilization of local resources • Replicability • Achievment of the 3-month implementation targets

Poverty Reduction Initiative by Mataram City in the 2007’s Good Governance Competition in NTB Program objectives To promote a more transparent and participative governance to effectively solve the problems facing the local communities and enhance opportunities to develop a better livelihoods in attempt to accelarate regional human development index . These objectives suggest two interrelated immediate outcomes, namely:

• Enhancement of application of good governance principles at local and community levels; and

• Development of capacity in local governance for the provision of better quality public services among local government agencies, intermediary and civil society organizations.

In addition, the above objectives also suggest a medium-term goal, namely the improvement of human development index along with the goal of good governance competition in Nusa Tenggara Barat province. As mentioned above, one of the challenges in the good governance competition is to prove significant results within a short-term period of implementation of the proposed innovation. Accordingly, the municipal government of Mataram together with the community members in the pilot area (Sembalun neighborhood) defined a set of performance indicators for a 3-month period, as foolows:

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• Poor households (families) are identified through participatory poverty assessment processes;

• A community-led Complain Unit in the pilot area is established and functioned effectively;

Along with these two indicators, sector-wide indicators were also defined as follows: Education sector indicators:

• There evidence that all children of the poor people from the pilot area are granted with free registration and tuition fee at local public elementary/ junior highschools;

• A community-based school for children under five years old, or the so called PAUD―Pendidikan Anak Usia Dini, is enhanced; qualified teachers are assigned, save learning facilties are provided and eligible students from the poor families are identified;

• The existed program for combating illeteracy is enhanced;

Health Sector indicators: • There evidence that all eligible poor people in the pilot area has received a

better quality and free of charge health services; • Community’s convention (Sasak language: awig-awig) to foster healthy

environment and livelihoods is established; • Establishment of collective toilets is socialized and supported;

Economic sector indicators:

• Relevant training courses are identified and implemented accordingly; • A micro finance institution to enhance availability of and access of the poor

and micro enterpreneurs to capital is established; Institutional framework Design and implementation of the pilot program—good governance innovation for poverty reduction―involved local government , community groups’ leaders, and multistakeholder fora at local (municipal level). The multistakeholder fora has been at the forefront of promoting pro-poor development for more than two years. It consists of personnel of non-government organizations/ intermediary organizations, staff members of the local government, professionals from local university, community leaders and members of business associations. The Municipal Development Planning Board played leading role in the coordination of these actors (institutions). Tools and Processes Good governance innovation for poverty reduction in Mataram city integrated a set of tools, among others, Community Action Planning (CAP) , Participatory Poverty Assessment (PPA), and Multistakeholder Fora ( refer to institutional framework), and Integrity Pact. These tools were not entirely new but have been evolving for several years in Indonesia and elsewhere, particularly in eastern Indonesia. The Community

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Action Planning (CAP), for example, has been adopted by Mataram city since 2003 from GTZ (German Technical Cooperation) in the framework of Urban Quality Management Program (GTZ-Urban Quality). The local stakeholder was established about five years ago but its evolvement into a multistakeholder fora with a focus on local economic governance is just recently. In addition, Mataram city also integrated some new elements into participatory assessment process. We further describe these tools below.

Community Action Planning—it evolves from the notion of participatory planning in urban context. It adapts a number of participatory methods to understand community’s situation, their problems and opportunities, and accordingly identify workable solutions. It mobilizes community members (men and women) and other local stakeholders for dialogs, resource allocation and responsibility sharing in collaborative actions at specified community level. Perhaps, there exist numerous ways of doing CAP, but in Mataram it involves six major steps, namely: • Preparation (planning for CAP: establishment of facilitator team, allocation

of responsibility, schedule, etc.); • Prepare a community profile (condition of living environment, population

number, available resources, identifiable potentials, problems, etc.); • Develop a 3-dimension model of the area to foster participatory learning

and spatial analysis; • Implementation of a CAP workshop at neigborhood level (analysis of

problems and opportunities, workable solutions by community itself, and actions plan that need government’s support)

• Integration of CAP (alignment) into municipal development plans • Monitoring of implementation of the actions plan

Participatory poverty assessment―it evolves from participatory methods in situation analysis and community-based development. It relies on community’s knowledge and values in the identification of the poor. Thus, community members themselves define the criteria of the poor, then identify the poor among themselves, verify it and resolve conflicts, if any. Multistakeholder fora— it is a platform for stakeholders’ dialog at local level. It evolves from facilitated learning process among local stakeholders in the attempt to enhance transparency and stakeholder’s participation in decision making for the provision of better public services. The fora brings in together actors (men and women) from local intermediary organizations, members of community groups, members of business association and the local government. The fora would allow these peoples to share vision or perspective and values and to understand better their respective roles, functions and objectives. The local government personnel could learn and understand better actual problems facing the local communities as well as their opportunities through direct dialogue and interactions with NGOs and private sector agents involved in the fora. Similarly, community members, NGOs and the private sector agents could understand better the vision,

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values, and factors that shaped government policies. In addition, through the interactive processes in the fora, the local communities, NGOs and the private sector agents could understand the limitations of the local government to meet their expectations and, this understanding, would avoid misguided expectation which otherwise would lead to unexpected social and economic circumstances. Integrity Pact―it is adopted from the German Technical Cooperation Agency ( GTZ SfGG—Support for Good Governance at the Ministry of Administrative Reforms of Indonesia). It is a written agreement on transparent and non-corrupt public procurement procedures with a disclosure of all relevant documents, signed by the project funding agency (e.g. GTZ in case of GTZ supported project) and all the bidders of the private sector. Eligible civil society organization or independent body of government or the private sector monitors and controlls implementation of the integrity pact.

In responding to the launching of Good Governance Award Competition by the Governor of NTB on 17th of December 2006, municipal government of Mataram established a team of facilitators to conceptualize an innovative approach (formulate a proposal), identify pilot area, and facilitate the whole process of planning, implementation and self-monitoring of the proposed innovation. Following initial conceptualization, the municipal government conducted socialization to the community members of selected neighborhood toward developing common understanding among stakeholders on the objectives and benefits of the program, and expected role and responsibilities of respective institutions and community groups. After socialization, a participatory process of poverty assessment to identify poor people in the neigborhood was conducted. Community members themselves define criteria of the poor and identify the poor people (poor household) in their neighborhood. It turned out that the poor people is defined as those people with no regular income and/ or those household who gain total income less than Rp. 300,000 per month, they either have no house or have a very simple house only. There were initially 139 households (about 70% of the total households in the neigborhood) categorized as poor during the process, but it became 142 at a later stage considering complains from some community members. Accordingly, the head of neigborhood then install a poverty sticker at each identified poor household. Along with the installment of the poverty sticker, the poor also received poverty card (kartu miskin) from the municipal government. The municipal government granted the card holders for free of charge health service at local hospital as well as free educaion fee for their children. In addition, the poverty card holder also receives subsidized rice, so called ”RASKIN” (rice for poor people) from the centrl government. In addition, municipal government also introduced complain mechanism by establishing a comunity-led institution at neigborhood level and installment of complain box at several visible places in the neigborhood. During the Good Governance Competition, there were several complains raised by community members by putting them into complain box, and three of these complains questioning the exclusion of three households from the list of poor while the complainers considered them as poor. Indeed, these complains had been

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addressed and these 3 households were decided as poor and then added to the list accordingly. Following identification of the poor, a process of community action planning began, involving not only the poor families but also the community leaders and relevant intermediary organizations which are active in the neigborhood. Sucess indicators of program were also defined during the community action planning process. All these process and tools constitute core elements the proposal of good governance innovation of Mataram City and forwarded to the provincial government for a Good Governance Award Competition. After some revision, considering inputs from blind reviewers and from participants of a raoundtable discussion organized by the provincial government, then the proposal was implemented in the pilot area (within a 3-month period) Shor-term Results One of challenges in the Good Governance Award is to produce tangible results (outputs) during a short period of implementation (3 months) of the proposed innovation. Below we explain some key results achieved by Mataram city during the 2007’s Good Governance Award in Nusa Tenggara Barat province. In the field of education, the actions plan has been implemented accordingly. The municipal government has granted free registration and school fee at elementary and junior high school level for students from the poor families (poverty card holders). In addition, municipal government of Mataram has mobilized a school for children under five years old in the pilot neighborhood (Lingkungan Sembalun) and has granted free registration and school fee for the children of the poor families. In addiion, a special program for combating illetaracy has also been established in the pilot neighborhood in which 3 learning groups have been established, learning facilities have been established, tools were provided and the learning process has been on going. Despite some limitations of the learning facilities, the interest of the group members to learn were notably high and some of the group members had become able to read and write after less then 3 months engagement in the learning process. The teachers for such an informal school for combating illeteracy were recruited from the public school teachers who reside in the pilot neigborhood and are willing to volunteer. Implementation of the education program for children under five years old were also considered as satisfactorily; some educative toys, have been delivered and save outdoor learning facilities have been also in place. In the field of health services, there evidence that municipal government of Mataram has delivered better services to the poor families. The poor families have enjoyed the free medical service and medicines at local healthcare service units and public hospital. In addition, community-led preventive measures have also been enhanced through, among others, establishment of the so called ”awig-awig” (community’s convention) on environmental care and collective actions for improving sanitation and construction and maintenance of collective facilities like toilets, laundry places, etc.

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Iin the field of economic development, the municipal government of Mataram had conducted a rapid assessment of needs and conducted training courses accordingly, namely on micro enterprise management and a training on technical skills on fish processing and packaging. In addition, a micro finance institution at neighborhood level was established by consolidating an existed cooperative, namely Koperasi Bahtera Damai. Furthermore, an integrated follow up measures to enhance knowledge and skills of the trainees and the micro finance institution have been designed through a participatory process. The actions plan focuse on empowerment of the women groups through capacity development in products and markets development along with institutional development (establishment of Women Enterpreneurs Fora, among others). The municipal government of Mataram would also delivered grant about Rp. 35,000,000 to eligible microfinance institution (Koperasi) in the pilot neigborhood for improving availability of accessibale capital for the micro enterpreneurs. The selected Micro Finance Institution should ensured that 30 % of the fund must be allocated to women for starting or extending their enterprises (this would be part of an integrity pact among municipal government, community members and local intermediary organizations). We also identified that community members in the pilot area (Sembalun neighborhood) actively engaged in development of collective and social infrastructure such as toilet and renovation of drainage system, and renovation of mosque by their own resources. While the target has not been fully realized according to the plan, allocation of responsibilities and role sharing among community members to pursue the envisaged results was transparent. Leessons Learned and Recomendations The experience of Mataram city demonstrates that creativity in combination with transparancy and participation produce notable results within a short period, namely three months. In economic perspective, these three variables seem to be good substitute for capital. Thus, given the public budget constraint, many useful development outcomes can be produce with more creativity, tranparancy and participation in local governance. In Mataram, the application of a creative stratgey along with some catalytic instruments (particularly the community action planing, participatory poverty assessment, community-led feedback and complain mechnism, and multistakeholder fora for local governance) promotes collective and collaborative actions that benefit the poor and, in turn, the rest of community members in the neighborhood. We also learn that the key role of BAPPEDA (Municipal Development Planning Board) and the Multistakeholder Fora is a key factor, among others, to establishing a dynamic stakeholders learning and interactions, trust building, and then appropriate allocation of resources and responsibilities among actors. Furthermore, sustainability and replicability of these instruments are potentially high because it drives local stakeholdes toward a more focused and cost efficent and effective development measures.

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However, we do shared numerous local stakeholders perception that the time allocated for socialization of the competition and preparation for a proposal was reasonably short (one month effective); thus they called for a longer time of socialization which will allow a more interactive and effective process if similar competition would be done in future. Similarly, the 3-month period for implementation of activities and demonstrate measurable results was considered as reasonably ammbicious, although that was one of the challenge in the competition. Some Ways Forward In order to enhance the on going attempts to further promote and disseminate good governance practices, we suggest some measures below, namely:

• Provincial government should play active role in facilitating good governance dialogs at provincial and local levels through, among others, establishment of Good Governance Fora or Good Governance Center of Excellent at provincial level;

• Similar competition but with different focus should be considered; it is not necessarily done every year but, perhaps, every two years, in order to provide more time for local governance to do strategic and resource alignment for the competition;

• The municipal government of Mataram should enhance the on-going collective and collaborative actions and prepare a cost-effective scaling up strategy. Alignment of the program with the related sector agencies at provincial level should be a priority for the municipal government in future;

• The guideline for the process and its methodology should be distributed and made accessible to public. The provincial government should play active role in this effort.

• Smart practices in fostering good governance practices should be compiled and disseminated;

• Intermediary organizations involved in designing and organizing the implementation of the Good Governance Award should be enabled to play an active role in the dissemination of the methodology to other regions and the facilitation of requested implementation processes.

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