Jakarta, 30 June 2011 The World Bank signed agreements with three national organizations that will implement PNPM Peduli, a new program under the umbrella of the National Program for Community Empowerment (PNPM) Mandiri. The program aims to empower the most marginalized at the grassroots level by restoring their dignity and confidence, developing their skills, improving their livelihoods, and facilitating greater access to economic opportunities and basic services.
The World Bank was represented by Indonesia Social Development Sector Coordinator, Jan Weetjens, while the three organizations were represented by: the Executive Director of Kemitraan, Wicaksono Saroso; the Executive Director of ACE (Association for Community Empowerment), Titik Hartini; and the Executive Director of Lakpesdam NU, Ahmad Fachrudin. The signing agreement was witnessed by the Coordinating Ministry for People’s Welfare, represented by Drs. H. Hadi Susanto, MA, Deputy Assistant for Regulation and Budget Affairs and Magdalena, Deputy Assistant for Micro Finance and Applied Technology.
The three organizations will implement the program with total grant of USD 3,708,700 under the oversight of the Coordinating Ministry for People’s Welfare and Bappenas. The World Bank will coordinate the Peduli grants through the PNPM Support Facility (PSF), a multi donor trust fund managing grants from the Governments of Australia, Denmark, the Netherlands, the United Kingdom, the United States, and the European Union.
The signing of the agreement formalised the legal procedure for activating the grants, “This is just the beginning,” said Jan Weetjens, “Now we have to implement the plan. So the real challenge is to really get the work to the marginalized people.”
Examples of the type of marginalized people that PNPM Peduli will reach include street children, orphans, street beggars, people living with HIV and AIDS, poor ethnic minorities and indigenous people, handicapped persons and people with disabilities, scavengers/garbage collectors, poor female-headed households, adults and children victims of trafficking, victims of domestic or community abuse, youth in conflict with the law, landless farmers, sexual minorities including transgender people, poor youth, and boat less fishermen, and others.
PNPM Peduli will be implemented in two phases: the first phase will be implemented in 2011 and 2012 and the second phase in 2013 and 2014.
In the first phase, PNPM Peduli, through the three organizations, will work with 30 local partner CSOs and 30 NU branches to reach more than 40,000 beneficiaries across 23 provinces. The program will be scaled up in the second phase to reach more marginalized people across more locations throughout Indonesia.
The Coordinating Minister of People’s Welfare recognized the important role that CSOs play in empowering the most marginalized throughout Indonesia. “PNPM Peduli is based on the belief that more inclusive poverty reduction will come from a stronger partnership between the Government and Indonesian civil society,” commented Drs. Susanto and Magdalena. Therefore an important focus of the program will be to strengthen national and local CSO capacities for inclusive poverty reduction, while building the organizational capacities of the three national organizations and their local CSO partners and branches to implement projects targeted to the most marginalized.
PNPM Peduli fills an important funding gap for local CSOs, including local NGOs (Non Governmental Organizations), grassroots organizations and community-based organizations working with the most marginalized. Many of these CSOs have not had easy access to funding in the past and have often had to function with very limited resources. PNPM Peduli will allow them to have more impact, helping to expand their programs, thereby reaching more marginalized people in more locations across Indonesia.