Like its predecessor the Kecamatan Development Program (KDP) which began in 1998, PNPM–Rural’s overall objective is for villagers in its rural locations to benefit from improved socio–economic and local governance conditions, through the provision of investment resources to support productive proposals that have been developed by communities using a participatory planning process. The project helps efficiently fill Indonesia’s large tertiary infrastructure gap: PNPM projects cost 30–56 percent less than those executed by contractors, and 94 percent of PNPM projects are still fully functional after four years.
PNPM–Rural achieves its development objectives by providing block grants directly and transparently to communities to finance an open menu of poverty alleviation activities identified through a gender–inclusive community participatory planning process; and by enhancing the capacity of GoI and local governments to partner with community organizations to improve the delivery of basic services. The annually disbursed kecamatan block grants range in size from Rp 750 million to Rp 3 billion (approximately US$84,000 to US$330,000) per kecamatan. Block grant allocations depend on the level of a kecamatan’s population, poverty incidence, and remoteness.
Total funding for the first and second PNPM–Rural projects, which respectively began in 2008 and 2009 was approximately US$1.9 billion, inclusive of US$531 million in World Bank loans, US$1.2 billion of GoI funds, and about US$160 million in community contributions. On March 30, 2010, the World Bank approved a US$785 million loan to continue its support to PNPM–Rural (through PNPM–Rural III).
2010 Progress: Four hundred kecamatan and almost 3,000 villages were added in 2010 as a result of administrative redistricting. Block grant funds totaled approximately US$740 million, of which 99.8 percent was disbursed as of April 30, 2010. Roughly US$139 million of these block grant funds was contributed by kabupaten governments. 2010 outputs from block grant fund sub–projects included:
- 18,279 km of farm/rural roads built
- 2,147 bridges built
- 3,447 irrigation systems built
- 2,053 clean water systems built which benefit >1.4 million people
- 6,135 public toilets and washing facilities built
- 438,432 square meters of school buildings built or rehabilitated
- 157,054 square meters of health facilities built or rehabilitated
- 283 village electricity units built which benefit >127,000 people
- 3,001 education activities supported
- 1,601 health activities supported
- 29,489 women revolving loan fund activities supported
Annually, these sub–projects benefit 34–35 million people and provide approximately 9–10 paid working days each to some 3 million villagers, around 70 percent of whom were classified as being very poor by their own communities. Women continued to be highly involved in the planning aspects of sub–projects; they accounted for more than half of the participants in village and inter–village meetings. They also initiated about 60 percent of all the sub–projects funded.
- 2007: 33,300 desa/1971 kecamatan/343 kabupaten
- 2008: 34,405 desa/2,447 kecamatan/336 kabupaten
- 2009: 57,266 desa/4,371 kecamatan/379 kabupaten
- 2010: 61,000 desa/4,791 kecamatan/385 kabupaten
- 2011: 63,000 desa/5,020 kecamatan/393 kabupaten
- 2012: 63.163 desa/5.100 kecamatan/393 kabupaten