EXIT STRATEGY FOR PROGRAM KELUARGA HARAPAN (PKH) FAMILY HOPE PROGRAM. Group Work Social Safety Net Course 2011

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1 EXIT STRATEGY FOR PROGRAM KELUARGA HARAPAN (PKH) FAMILY HOPE PROGRAM Group Work Social Safety Net Course 2011

2 COUNTRY BACKGROUND Population: 238 million National Poverty line: US$21.20 per person per month Population below the national poverty line: 12.49% Participation of poorest quintile in school: 74% Maternal Mortality Rate: 240/100,000 live births Malnutrition - Weight for Age: 17.5% of children under 5 Malnutrition - Height for Age: 35.6% of children under 5 Special vulnerabilities: Natural and man made disasters

3 SOCIAL PROTECTION SYSTEM Q5 Social Insurance Social Assistance Q4 Pensions Q3 Q2 Q1 Health insurance Employment Accident Death Cluster 1 Scholarship Rice Subsidies CCT* (PKH) Disability Neglected Children Poor Old-Age * * For very poor people Cluster 2 Cluster 3 Microcredits Community for SMEs Empowerment (PNPM) - Public Works 3

4 BACKGROUND ON PROGRAM OF FAMILY HOPE (CCT) Eligibility. CCT to the poorest households (based on PMT targeting) which have expecting or lactating mothers and children between 0-15 years old. Objectives. Reducing extreme poverty and child labor and improving access to the poor to health and education services Timeline. PKH will be conducted from 2007 to 2020: Original design assumed beneficiaries remain in the system for a max of 6 years Spatial expansion. Through phased expansion now reaches 25 of the 33 provinces Coverage and Budget. Total number of beneficiaries 2011 estimated at 1.1 million HHs at a cost of $160million; and for 2014 the goal is 3.0 million HHs at a cost of US$424 million Benefit. Benefit ranges from a flat benefit of US$60 (min) to max of US$220 per household per year

5 BENEFIT SCENARIO Benefit Scenario Annual Benefit per Poor HH Fix Benefit $ 20 Additional? Benefit for Poor HH who has: a. Children under 6 years old b. Pregnant/lactating mother c. Children in elementary school age d. Children in junior secondary school age $ 80 $ 80 $ 40 $ 80 Average benefit per poor HH $ 140 Minimum benefit per poor HH $ 60 Maximum benefit per poor HH $ 220 Notes: - Average benefit is calculated based on 16% of total annual income of poor HH. - The range for minimum and maximum benefit is between 15-25% average annual income of poor HH. - Benefit scenario will be evaluated periodically.

6 WHY REFORM? Rationale Program was designed for beneficiaries to benefit from the program for a period of 6 years The first group was thus expected to exit in 2013 Evidence suggests need for continuation and integration Evidence Impact Evaluation 2011 significant health impacts with very insignificant education impact Uncertainty of durability of behavior change

7 PROPOSED REFORM Objective: Supporting the PKH beneficiaries to become more self-sufficient CCT (PKH) Beneficiaries Recertification (PMT) Exit Strategy: 2 thresholds -Upper T: Exit -Stop PKH, link to other programs Other Social Assistance Programs -Cluster 1 -Cluster 2 -Cluster 3 - Lower T: Continue PKH 7

8 SOCIAL PROTECTION SYSTEM Q5 Social Insurance Social Assistance Q4 Pensions Q3 Q2 Q1 Health insurance Employment Accident Death Cluster 1 Scholarship Rice Subsidies CCT* (PKH) Disability Neglected Children Poor Old-Age * * For very poor people Cluster 2 Cluster 3 Community Microcredits Empowerment for SMEs Program (PNPM) - Public works 8

9 WHAT DOES THE REFORM PROCESS INCLUDE? 1. Integrated MIS for Social Protection for Indonesia 2. Staggered Recertification for PKH (home visits, determine 2 thresholds) 3. Case Management Approach using Social Workers

10 ANALYSIS OF REFORM Institutional Arrangements National Agency for Accelerating Poverty Alleviation (interministerial agency) will coordinate all SP programs MIS from which all other ministries and agencies could draw upon Capacity Government staff to develop, finance, and implement an integrated MIS system Social Workers on case management Trade offs Increase coverage VS increase graduation rate Consolidation trade-offs, absorption capacities Political Economy Strong support for poverty reduction Elections in 2014 need of a consensus from all parties on the reform

11 NEXT STEPS 1. Building Consensus a. Develop a detailed Concept Note b. Present the reform to the inter-ministerial committee c. Present to the higher-level government officials, then to the parliament 2. Develop a detailed Action Plan 3. Implement the Reform in 2013

12 THANK YOU TERIMA KASIH

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