THE INDONESIAN EXPERIENCES THE INDONESIAN EXPERIENCES

IN DEVELOPING IN DEVELOPING

POVERTY REDUCTION STRATEGIESPOVERTY REDUCTION STRATEGIES

By

Djoharis Lubis

Deputy Coordinating Minister of People’s Welfare

Republic of Indonesia

Jakarta

Los Angeles

New York

London

Bali Ankara

REDUCING THEINSIDENCE OF

POVERTY

INCREASING INCOME :

• Employment Opportunities• Business Opportunities

PEOPLEWELFARE

REDUCING EXPENDITURES :

• Education• Health• Infrastructure

CONSTITUTION PREAMBULE

Social welfare can be improved by reducing poverty

Poverty can be reduced through economic growth

Economic growth depends on political and social stability

Political and social stability depends on economic growth

SOCIAL WELFARE &ECONOMIC GROWTH

SECURITYPOLITICS

POPULATION UNDER POVERTY LINEPOPULATION UNDER POVERTY LINE

< 5 % (Jakarta) 5 - 9 % (Bali, South Kalimantan, Banten)

10 - 14 % (West Sumatra, Riau, Jambi, Bangka Belitung, West Java, East Kalimantan Central Kalimantan, North Sumatra, North Maluku)

15 - 19 % (North Sumatra, West Kalimantan, South Sulawesi) 20 - 24 % (South Sumatra, Bengkulu, Lampung, Central Java, Yogyakarta, West Java, Central Sulawesi, North Sulawesi) 25 - 29 % (Aceh, NTB)

30 - 34 % (NTT, Gorontalo, Maluku) > 35 % (Papua)

Population under poverty line :

Sources : CBS

41,8%

Figure: Proportion of The Indonesia Population Below Poverty Line (PO)

15.0813.67

17.55

23.43

18.2

0

5

10

15

20

25

30

1990 1993 1996 1999 2002

Resources : Central Statistical Bureau

National Summary data for monitoring MDG : Indonesia 1990 - 2002

Figure: Indonesia Poverty Gap Ratio

17.77

28.16

9.97

18.4816.54

0

5

10

15

20

25

30

1990 1993 1996 1999 2002

Resources : Central Statistical Bureau

National Summary data for monitoring MDG : Indonesia 1990 - 2002

The Past Poverty Reduction Approach The Past Poverty Reduction Approach

Trickle Down Effect Centralistic Uniformity Less Consideration on Socio-Cultural

Diversities Top-down Approach

The New Paradigm of Poverty ReductionThe New Paradigm of Poverty Reduction

The Definition of Poverty Needs to be Broadened Beyond The Traditional Expenditure

The Poor are The Main Actors in The Fight Against Poverty The Role of The Government, Donors, NGO’s Society

Should Facilitate The Poor to Overcome Their Problems But Not Attempt to Solve The Poverty Problem For Them

Centralistic to Decentralization Trickle down effect Approach to be Regional Approach Government as facilitator and mediator Government more rowing rather than steering

Indonesia has committed to place Poverty

Eradication as a priority

TWO GRAND STRATEGIES

1. Increasing income of the poor.

2. Reducing expense of the poor.

FOUR STRATEGIC PILLARS

1. Promoting and creating opportunities.

2. Community empowerment.3. Capacity building & human

resources development. 4. Social protection.

FORMULATION FRAME WORK FORLONG TERM POVERTY REDUCTION STRATEGY

GOALREDUCTION OF>50% NUMBER

OF POOR PEOPLE, 2015

INCREASINGINCOME

REDUCINGEXPENSES

CREATINGOPPORTUNITY

COMMUNITYEMPOWERMENT

CAPACITYBUILDING

SOCIALPROTECTION

MAPPING OF

POVERTY PROBLEMS

POLICYREVIEW

POLICYFORMULATION

MONITORINGAND EVALUATION

Committee forPoverty Alleviation(National Director)

Task Force I Creating Opportunity

Review Policies Joint Program for

Poverty Analysis Indicator and Targets Monitoring System &

Evaluation

Task Force II Community Empowerment

Review Policies Joint Program for

Poverty Analysis Indicator & Targets Monitoring System &

Evaluation

Task Force III Capacity Building

Review Policies Joint Program for

Poverty Analysis Indicator and Targets Monitoring System &

Evaluation

Task Force IV Social Protection

Review Policies Joint Program for

Poverty Analysis Indicator and Targets Monitoring System &

Evaluation

Joint Programfor Poverty

Analysis

Indicatorand

Targets

MonitoringSystem andEvaluation

PRSPReview Poverty

Problems inSampling Areas

Coordinating Team for theFormulation of Poverty

Reduction Strategy Paper(PRSP)

Secretariat

Assistants to Formulate theStrategy for Regional PovertyReduction for 30 Provinces/

391 regencies/cities Guidance Technical Assistance

MECHANISM IN FORMULATING PRSP

NATIONAL

REGIONAL

STEPS OF STRATEGY FORMULATIONSTEPS OF STRATEGY FORMULATION

INPUT/ACTIVITYINPUT/ACTIVITY PROCESSPROCESS OUTPUTOUTPUT

Participatory Poverty

Assessment

Policy and Program Review

Other SupportingActivity/Priority

Developing Data Base

Mapping of Poverty Conditions and Characteristics

Inventing Models of Poverty Reduction

Formulating Alternative Action Formulating Performance Indicator

Identifying related Poverty Reduction Policy and Program

Criteria/Guideline of Policy/Program Review

Evaluating Poverty ReductionPolicy/Program

Policy Research

Condition, Problem and Model Of Poverty

Reduction

Poverty Reduction Strategy

Poverty Reduction Policy and Program

P R S PP R S P DOCUMENTDOCUMENT

Region Facilitation

Interim Poverty Reduction Strategy Paper (I-PRSP)

The most significant challenges have encountered in preparing PRSs Population about 210 million Multi ethnics and diversity The prolonged of the Multi dimension

impact of crisis • The tendency of heating political

situation interring the period of General Election.

• Euphoria of reformation• Ethnocentrism /Local centrism

The role of local government Local Policy and regulation Direct role on combating poverty

and delivery services to the poor. Facilitating and supporting wider

participation in the combating poverty effort

Implementing common principles in dealing poverty eradication.

POVERTY REDUCTION PROGRAMS

1. Provision of basic needs for the poor to help them with food, basic services in health, education and shelters.

2. Development entrepreneurship and skills of the poor.

3. Development of Social Security System.4. Partnership.

1. Provision and sustainable stocking of basic needs;

2. Control of the prices of basic items;3. Provision of basic services, especially in

health and education;4. Expansion of distribution networks for

basic needs, and5. Improvement of residential

environments including supply of save water.

The first program includes activities for :

1. Development of business education and training;2. Advocacy through guidance and consultations;3. Development of business collaboration networks

supported by local community organizations, local government, private sector and universities;

4. Opening of accesses to resources;5. Provision on infrastructure and facilities for

business of the poor, and6. Establishment of new transmigration location for

farmers and agricultural laborers (non-land farmers).

The second program includes activities on :

• Development of effective Social Security System suitable with local customs;

• Consolidation of the existing social security system, and

• Strengthening of regional government capacity and population in social security management.

The third program includes activities on :

REGIONAL COOPERATION

• Exchange of information and experiences.

• Joint efforts on : - research - anti-poverty campaign

• Study visits• Establishment of Regional Financial

Institute for Poverty Eradication.

Thank You

Terima Kasih

DhanyabaadSjukriaSjukria

Salamat Salamat PoPo

Thank You

Xie XieXie Xie

Cam OnCam On NamasteNamaste

MazvitaMazvita

Innge Innge abouggaabougga

DhanyawadDhanyawad

Introduction

Indonesia: A Country of Many Splendoured Thing Many islands. The largest archipelago on

earth;

Socio-Cultural Structure

Many religions: Islam, Christian (Catholics & Protestants), Hinduism, Buddhism. Constitutional guarantee;

Many differences and similarities “Unity in Diversity”;

Many changes, big and small. Impact of National Development, Global Interchange of ‘Culture’ in may aspects of life.

INTRODUCTIONINTRODUCTION

Indonesia is the world’s largest archipelago, comprising more than 17,000 islands with a total coastline of 81,000 km. It extends across a land mass of 741,101m square miles, has territorial water of 3.17 million sq.km.;

Indonesia’s population 215 million people makes it the Worlds Fourth most populous after China, India, USA. Its growth rate is less than 2%;

People living in poverty: July 1997 76,4 million, December 1998 : 49.5 million August 1999 37,5 million, February 2000 : 33,2 million.

- TO SYNCHRONIZE MACRO AND MICRO POLICY STRATEGY- TO SYNCHRONIZE MACRO AND MICRO OPERATIONAL PILICY

CREATING

OPPORTUNITY

COMMUNITY

EMPOWERMENT

CAPACITY

BUILDING

SOCIAL

PROTECTION

INCREASING INCOME EXPENCE REDUCTION

Mean streaming Poverty Reduction as an effort to place a right perspectiveAnd inter-policies consistency, Inter progames, budgeting, targeting and

delivery system

TO IMPROVE PEOPLE’S WELFARE

POVERTY REDUCTION

BUDGET ALLOCATION FOR POVERTY ERADICATION 2002

• Sectoral institution : Rp. 16 trilliun.• Oil subsidy compensation : Rp. 2.85 trilliun.• Logistic Agency : Rp. 4.7 trilliun.• Dept. of Kimpraswil : Rp. 3.1 trilliun.• Family Planning : Rp. 1.4 trilliun. • Dept. of Health : Rp. 1.2 trilliun.• Dept. of Home Affairs : Rp. 1.1 trilliun.• Dept. of Social Affairs : Rp. 1.1 trilliun.

Social welfare can be improved by reducing poverty

Poverty can be reduced through economic growth

Economic growth depends on political and social stability

Political and social stability depends on economic growth

SOCIAL WELFARE &ECONOMIC GROWTH

SECURITYPOLITICS

Jakarta

Los Angeles

New York

London

Bali Ankara

Thank You

Terima Kasih

DhanyabaadSjukriaSjukria

Salamat Salamat PoPo

ORKUN

Thank You

Xie XieXie Xie

Cam OnCam On NamasteNamaste

MazvitaMazvita

Innge Innge abouggaabougga

DhanyawadDhanyawad