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    PNPM–Urban works to ensure that the urban poor benefit from improved socio–economic and local governance conditions. This is achieved through:

    1. Forming and institutionalizing elected representative organizations that are accountable to communities
    2. Providing grants to communities directly and transparently to finance poverty alleviation activities, especially infrastructure services
    3. Enhancing the ability of central and local governments to partner with community organizations in the provision of services
    4. Increasing awareness of disaster risk mitigation and mainstreaming of measures for resilience and recovery

    PNPM–Urban is designed to promote the development of community organizations (BKM) at the urban ward (kelurahan) level. The BKM are eligible for up to three block grants ranging from US$15,000 to US$40,000 per kelurahan to help meet the goals of the community development plan.

    PNPM–Urban builds primarily on the World Bank–funded Urban Poverty Program (UPP1, UPP2/Additional Financing, and UPP3) that began in 1999. In 2008, the World Bank approved the first PNPM–Urban project and provided subsequent additional financing in 2009. PNPM–Urban III was approved in 2010. The total project cost is US$217.4 million, including a US$155 million loan from the World Bank (including co–financing of US$5 million from the Global Facility of Disaster Reduction and Recovery), US$36.9 million provided by GoI, and an estimated US$25.5 million from community contributions.

    2010 Progress: In 2010, PNPM–Urban, with additional support from IDB covered 10,948 wards in 268 kota/kabupaten across 33 provinces. US$100 million of kelurahan grants was disbursed to wards, mostly for infrastructure (84 percent). The remainder of the grants went toward economic activities (6 percent) and social activities (10 percent).

    As of December 31, 2010, the UPP and PNPM–Urban program have financed construction of approximately 26,000 km of small roads, 7,100 km of drainage, 170,000 units of solid waste and sanitation facilities and 13,000 community health facilities, and rehabilitated 110,000 houses for the poor. They also financed 175,000 economic activities through revolving funds.

    Roughly 7,500 facilitators and coordinators are in place and 10,948 Board of Trustees have been formed. The key project performance indicators have generally been met, including those for women’s participation. More than 35 percent of the facilitators are women, and about 33 percent of the adult population in the urban wards participated in the election of the Board of Trustees, of which about 45 percent are women.

    PNPM–Urban has also initiated several pilot programs, including the Poverty Alleviation Partnership Grant (PAPG) and the Neighborhood Development Program to enhance the effectiveness of the program. Both of these two new initiatives focus on strengthening local government’s role in PNPM. There were 117 kota/kabupaten participating in PAPG, and 273 kelurahan participated in the Neighborhood Development Program.

    In 2010, PNPM–Urban supported some 185 kelurahan in West Sumatera for housing reconstruction and rehabilitation (5 houses per kelurahan) after an earthquake. The construction of all affected houses will be supported by BNPB (National Agency for Disaster Management). The objective was to provide good examples of house building. The project is planned to be completed in 2011.

    2011 Plans and Activities: For 2011, PNPM–Urban will continue covering at least 10,948 kelurahan in 268 kota/kabupaten across 33 provinces, which will be funded by available loans. In addition to core PNPM–Urban activities, the program will continue with its pilot activities.

    A series of PSF–funded activities will examine the PNPM–Urban approach in the context of urban poverty in Indonesia today, its strengths and weaknesses, links to other urban poverty programs, and bring in global experiences in urban CDD–based poverty interventions. The results of the activities will be used to support future project design and implementation. More details are included in the PSF Projects section of this report.

    In 2011, the program will also manage approximately US$1.4 million of PSF funds that will be allocated for “cash for work” programs in 38 PNPM–Urban kelurahan as a response to the Mount Merapi volcanic eruption in Central Java.


    Scope: National

    2008: 8,813 urban wards in 245 kota/kabupaten

    2009: 11,014 urban wards in 267 kota/kabupaten

    2010: 10,948 urban wards in 268 kota/kabupaten

    2011: 10,948 urban wards in 268 kota/kabupaten