Poverty Alleviation in Indonesia Presented to the First Meeting of Poverty Alleviation Working Group of COMCEV Member Countries Ankara, Turkey 27 June 2013 Ministry of Social Affairs of the Republic of Indonesia
Country Facts of Indonesia Population: 245,613,043 (July 2011 est.) Capital: Jakarta Area: 1,904,569 sq. km. Ethnic groups: Javanese 40.6%, Sundanese 15%, Madurese 3.3%, Minangkabau 2.7%, Betawi 2.4%, Bugis 2.4%, Banten 2%, Banjar 1.7%, other or unspecified 29.9% (2000 census) Languages: Bahasa Indonesia, English, Dutch, local dialects (the most widely spoken of which is Javanese). Religions: Islam 86.1%, Protestantism 5.7%, Roman Catholicism 3%, Hinduism 1.8%, other or unspecified 3.4% (2000 census) Literacy: 90.4% (2004 est.) Urbanization: 52% (2008) Population Living on US$1.25 a Day: 19% (2009) Access to Improved Water Source: 80% (2009) Access to Improved Sanitation Facilities: 52% (2009) Sources: World Factbook, World Bank
Continued... The world s largest archipelago (17,500 islands or more). The world s 4 th most populous country has had recent success in achieving economic growth (a lower middle-income nation). More than 32 million Indonesians out of a population of 234 million live below the poverty line (The World Bank). About half of all households remain clustered around the national poverty line set at 200,262 rupiah per month (US$22). Such families are vulnerable to any shock caused by economic downturn or natural disaster. Highly vulnerable to earthquakes (flooding, volcanic eruption, mud volcano in Sidoarjo, East Java Province, fire, etc.) Climate change is a major threat with droughts, floods and mudslides expected to worsen in the future. As of early 2011, Indonesia faces a shortfall of eight million homes, according to the Public Housing Ministry. President SBY has announced a plan to build over one million houses for lowincome people within five or 10 years. The cheapest houses would be priced between 5 million rupiah (US$560) and 10 million rupiah (US$1,130). Nearly 70 percent of low-income housing is built mostly by the families themselves rather than by the government or private developers. Almost 25 million families live in urban slums with many others living along railway tracks and riverbanks, on streets and in areas that are unfit for settlement.
Target of Poverty Reduction in Line with MDGs Poor population Level of poverty Source : Statistical Bureau Indonesia (BPS), Multi Years Note: *) Based On Poverty Line (2.100 Calorie) **) Target Of Millennium Development Goals Year 20153
TINGKAT KEMISKINAN 2005-2014 17.75 16.58 15.42 15.97 14.15 13.50 13.33 12.00 11.50 10.50 12,49 Sampai saat ini masih masuk dalam range target tetapi semakin rendah ngkat kemiskinan, semakin sulit menangani kemiskinan 12.50 11.50 10.50 9.50 10.00 8.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Tingkat Kemiskinan Target RPJM (Skenario Optimis) Target RPJM (Skenario Moderat) TIM NASIONAL PERCEPATAN PENANGGULANGAN KEMISKINAN 16
POVERTY CLUSTER AND NATIONWIDE PROGRAMS
UNIFIED DATA BASIS 2011 40 % Unified Data Basis contains name and address of 40% lowest income population 30 % 125% Poverty Line 25 % Coverage of Rice fotr the Poor 2013 Near Poor/Vulnerable 11,66% Poverty Line Poor 5% Very Poor 80% Poverty Line
UNIFIED DATA BASISFOR SOCIAL PROTECTION PROGRAMMES Criteria of membership Stipulated by Line Ministries or Local Governments Unified Data Basis for Social Protection Programmes The criteria of beneficiaries are based on Unified Data Health Security for the Poor Subsidy for Poor Students Conditional Cash Transfer (PKH) Rice for the Poor List of beneficiaries (name and address) according to the programmes Other Social Protection Programmes for Individuals/Households/Groups/Communities
Poverty Cluster and Programs CLUSTER I CLUSTER II CLUSTER III Social Assistance and Protection Community Empowerment SMEs Reducing Poor Household s Expenditures Programs: Rice for Poor (Raskin), Community Health Security (Jamkesmas), CCT (PKH), Enhancing Community s Livelihood Program: Self-Help Community Empowerment National Program (PNPM Mandiri) Enhancing Community s Savings and SMEs Program: Credit for SMEs Food, Education, Health, Sanitation, Clean Water Building Capacity for Participation Creating Entrepreurship 10
I. Health Insurance for the Poor (Jamkesmas) and Maternity Insurance (Jampersal) Health Insurance for the Poor is delivered through 8.917 community health centers/ PUSKESMAS) and hospitals (public and private) Maternity Insurance is delivered through physician and midwife practitioners, community health center/puskesmas, maternity clinic and hospital Fund is channelled from central to district/city through social assistance mechanism Beneficiaries for Jamkesmas (with member card): 86.4 Million (Unified Data 2011) Beneficiaries of Jamkesmas (non card): Beggar and Vagrants, Clients of Orphans, Prisoners, Patients of Thalasameia Mayor, beneficiaries of CCT Program (who have special member card)
Coverage of Health Insurance (2010) Distribution of population having Health Insurance according to the types of Insurances Proportion of Population with health insurance 20,83 5,61 12,45 3,33 43.98 57,78 56,02 Askes PNS&TNI POLRI Jamkesmas Jamsostek Jamkesda Local Health Insurance (JAMKESDA) exists in 250 districts/cities Tidak memiliki Jamkes Punya Jamkes 4 Provinces with Universal Coverage: South Sumatra, South Sulawesi, Bali, Nanggroe Aceh Darussalam
II. Rice for the Poor (%) Rice for the Poor is price subsidy given to the poor (cluster 1, 2, 3) The price of the rice paid by the beneficiaries is IDR 1.600/kg while the real price is 7.751,86/kg Subsidy provided by government is IDR 6.151,86/kg 18 16 14 12 10 8 6 4 2 0 Poverty Level 15,42 14,15 13,33 12,86 11,96 11,66
III. Conditional Cash Transfer (Program Keluarga Harapan) PKH irovides cash transfer to selected very poor households (RTSM). They have to meet specific conditions to improve human capital (education and health) of children. Started in 2007 as pilot with targeting on 400,000 HHs. By end of 2013, 2.4 million HHs enrolled. Plan is to increase program to 3.2 million HHs (aboout 80-90% of extreme poor) by 2014 Beligible HH are those having: pregnant and lactating mothers, children 0-6 years old, children enrolled in primary and secondary schools, or children 15-18 year olds who have not completed primary school.
Conditions to be met by beneficiaries: Pregnant mothers and toddlers should visit the community health centres (Posyandu/Puskesmas) to have their pregnancy and health examined. Children of PKH beneficiaries should be enrolled in schools and must attend at least 85% of school days per month.
Beneficiaries of CCT 2007-2013 16 2007 2008 2009 2010 2011 2012 2013 Number of target of HHs(thousand) 400 642 720 816 1.116 1.516 2.400 Budget allocation (Rp billion) Provinces (Total 33) Districts/Cities (total 500) 800 1.000 1.100 1.300 1.600 1.800 2.400 7 13 13 20 25 33 33 48 70 70 88 119 169 337 Subdistricts 337 637 781 946 1.151 2.001 3.430 16
Cash Scenario Payment Schedule Payment amount for Beneficiaries per year (IDR) Fixed Payment 200.000 Payment for RTSM with: a. Pregnant/lactating mothers and/or children under 6 years 800.000 b. Children attending primary schools (SD/MI) 400.000 c. Children attending secondary schools (SMP/MTs) 800.000 Minimum payment for each RTSM 600.000 Maximum payment for each RTSM 2.200.000 Note: - Maximum payment for each RTSM is Rp. 2,200,00, with 3 children. - Health related cash transfer is eligible for RTSM with children under 6 years and/or pregnant/lactating mothers. - Amount of payment are not based on the number of children.
IV. Cash Assistance for Poor Students (BSM) Aimed to encourage students from poor families to pursue their study, to prevent drop-out, to pull street children out from the street, to fulfill the students basic needs. As a bridge to succeed school obligatory of 9 years. C ash amount transferred to students: Basic School IDR 360.000/annum Junior high school IDR 550.000/annum Senior high school IDR 780.000/annum University IDR 1.200.000/annum
V. COMMUNITY EMPOWERMENT The biggest and nationwide program is PNPM Mandiri (Self-Help Community-Based Empowerment) PNPM designed as community based complement to household CCT program Community members, program facilitators, and frontline service providers work together to achieve common set of health and education goals Uses community based targeting methods Flexible enough to target demand or supply side problems Communities receive performance bonuses based on improvements PNPM Roadmap: Integrating community empowerment and poverty reduction program delivery; One village, one plan, one facilitation
SOFT LOAN FOR SMEs (KUR) Soft Loan for Small and Medium Entrepreneurs (Kredit Usaha Rakyat-KUR) provided for poor people in Cluster 3 (near poor) Aimed at enhancing capital access of the poor for small and medium entrepreurships
Other Programmes Conducted By Line Ministries Besides nationwide programmes, many sectoral programmes for the poor are implemented Targets: farmers, fishermen, street traders, elderly, people with disabilities, etc. Schemes are based on individuals, groups, families, communities.
Example 1: Social Assistance for Elderly and PWDs Conducted by MOSA Elderly: 26.500 of 2.299.235 (1,15%) PWDs 22.000 of 1.252.838 (1,75%) IDR 200.000 (USD 20) Monthly IDR 300.000 (USD 30) Monthly Recipient or care giver s bank account Recipient or care giver s bank account
Example 2: Indecent Housing for the Poor Indecent housing is a condition of a house which does not meet the basic requirement of health, security and social aspects for a family. Rehabilitation for a descent home is an effort to renovate indescent home both the whole of parts as well as a part of it so that the home will be a healthy place for a family to live. Public facilities rehabilitation is an effort to renovate public facilities to enhance the quality of life and environment of the people.
1. BEGINNGING (0%) I Ketut Suweta Family, Banjar Tewruna Desa Tamanbali, Kabupaten Bangli, Bali 2. PROCESS (50%) 3. FINISHED (100%)
Example 3: Group-Based Economic Productive Scheme (KUBE) Seed capital provided for a group of poor Prior to capacity building, vocational training Aimed at creating community entrepreneurs Income generating basis
Thank You Terima Kasih Ministry of Social Affairs of the Republic of Indonesia Achieving Social Welfare of the Societies