1. Program Nasional Pemberdayaan Masyarakat (also known as “PNPM”) is the Government of Indonesia (GOI)'s flagship poverty reduction and community empowerment program implemented by MoHA with coordination and oversight from Bappenas. Activities include construction of infrastructure, a revolving loan fund scheme, and the delivery of community training activities through PNPM Rural, and provision of access to basic health and education services through PNPM Generasi. The program’s success since inception in 2008 has been largely due to the community driven approach ensuring community participation and empowerment as well as the extensive facilitation network supporting the program’s robust governance framework.
2. This Governance Update highlights the key areas of project governance for PNPM Rural and PNPM Generasi. Since the previous iteration of the Governance update, PNPM IV closed on 30 June, 2014 having made good progress in achieving its development objective of ensuring that villages in project locations were able to benefit from improved socio-economic and local governance conditions, and in most cases, exceeded end of project target values. PNPM 2012-2015 is making reasonable implementation progress with some delays in in transitioning PNPM’s project based structure in support of the implementation of the Government of Indonesia’s Law 6/2014 on Villages (Village Law) in 2015.