1. PNPM is the Government of Indonesia’s (GoI) flagship poverty reduction program. It has been successful in disbursing over USD 5.9 billion since 2008 to communities for infrastructure and revolving loan fund activities. In this time, more than 180,000 kilometers of road, 333,000 bridges and nearly five million sanitary facilities have been built in communities across Indonesia. The program’s foundations are entrenched in the principles of community driven development, resulting in consistently “high quality” (ratings expressed by beneficiaries with respect to the infrastructure sub-projects.
2. This Governance Update highlights the key areas of project governance for PNPM Rural and PNPM Generasi. The first part of the report discusses the current status of key areas of governance including challenges and new initiatives. The key areas highlighted are considered mechanisms significant for good program governance and although a number of areas require attention, in general, most are functioning effectively.