How is BLM (Community Block Grant) managed by the community?
The basic principle of managing the BLM fund of PNPM Mandiri is self-management by the community. The BLM fund which has been transferred to the collective community account will become the full possession of the receiving community and will be used to finance activities planned by the community in the framework of improving people’s welfare in a responsible manner, in accordance with the principles and procedures of each program, and the State will release all its rights and obligations to the funds.
How is BLM (Community Block Grant) managed by the community?
The basic principle of managing the BLM fund of PNPM Mandiri is self-management by the community. The BLM fund which has been transferred to the collective community account will become the full possession of the receiving community and will be used to finance activities planned by the community in the framework of improving people’s welfare in a responsible manner, in accordance with the principles and procedures of each program, and the State will release all its rights and obligations to the funds.
Have there been cases of misusing PNPM Mandiri funds?
For PNPM Rural alone, from the beginning of the program in 1998 until today there have been about 3,000 cases of misusing funds with a total value of approximately Rp 65 billion, but around 70% of the funds has successfully been recovered. For PNPM Urban, since 2007 almost Rp 5 billion has been misused and around Rp 1,5 billion has been recovered. PNPM also cooperates with the relevant authorities from the village to national level to process the cases of misuse.
Have there been cases of misusing PNPM Mandiri funds?
For PNPM Rural alone, from the beginning of the program in 1998 until today there have been about 3,000 cases of misusing funds with a total value of approximately Rp 65 billion, but around 70% of the funds has successfully been recovered. For PNPM Urban, since 2007 almost Rp 5 billion has been misused and around Rp 1,5 billion has been recovered. PNPM also cooperates with the relevant authorities from the village to national level to process the cases of misuse.
Have the monitoring mechanisms been successful to date?
This program is designed to support the poverty reduction program by empowering the communities with better community involvement at the planning, implementation and monitoring levels. This means that the program is intended for the communities and they themselves will oversee the use of the funds. When cases of fund misuse are found, the communities themselves will take action. So far, the percentage of fund misuse in the PNPM has been very low. In PNPM Rural, less than 0.2% of the value of the BLM disbursed (according to annual data of national management consultants and the results of annual audits of BPKP).


