The National Program for Community Empowerment (PNPM) Support Facility (PSF) assists the Government of Indonesia (GoI) in providing effective leadership and management of Program Nasional Pemberdayaan Masyarakat (PNPM). Launched in 2007, PNPM is the GoI’s flagship poverty alleviation program. Building on several smaller-scale pilots, PNPM currently comprises five core programs: PNPM-Rural, PNPM–Urban, Support for Poor and Disadvantaged Areas (SPADA), Regional Infrastructure for Social and Economic Development (RISE) and Rural Infrastructure Support to PNPM (RIS).
PSF was established by the Government of Indonesia and supported by multi-donor grants provided by the Governments of Australia, Denmark, the Netherlands, United Kingdom, United States, and the European Union. The grants are administered by the World Bank.
PNPM aims to improve the poor’s socio-economic and local governance conditions and is now the largest community-based poverty program in the world, covering every urban and rural sub-district in the country. PNPM uses a community-driven development (CDD) approach, providing block grants to local communities to finance local development priorities. These priorities typically include small-scale social and economic infrastructure, education and health activities, and micro-loans to women savings groups, and implemented with mechanisms to ensure broad-based participation and transparency.
The PSF enables the GoI to access a range of donor programs and resources to support poverty alleviation. As of 2011, the GoI executes the largest share of approved PSF resources (71%), with 7 projects and activities totaling US$133 million. The PSF Secretariat/World Bank is responsible for the implementation of 14 projects and activities totaling approximately U$43 million (23%), and NGOs for 7 projects totaling about US$11 million (6%).
PSF staff are composed of social development specialists and operational staff hired by the World Bank. Most staff members are Indonesian and are complemented by about a dozen international specialists who come from a wide range of countries.