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IFAD
in Indonesia
Since 1980, IFAD has extended loans to the Republic of Indonesia for 13 programmes and projects totalling US$333.5 million. Ten of the programmes and projects have been completed, and three are ongoing. During 25 years of experience in Indonesia, IFAD has learned that there is a need for the organization to:
The National Programme for Community Empowerment (PNPM) will contribute to the realization of the government’s development goals of reducing poverty in rural areas and improving governance at the local level. The ongoing Post-Crisis Programme for Participatory Integrated Development in Rainfed Areas has been designed to build poor rural people's institutions in the form of self-help groups that work closely with other community-based organizations managing local resources. Members of groups can develop their skills, undertake a range of initiatives through collective action, and become self-reliant. The aim of the programme is to reach 450,000 people living in some of the poorest villages in Indonesia. In implementing the programme, IFAD works through strong partnerships with NGOs. Similarly, the Income-Generating Project for Marginal Farmers and the Landless (P4K) – Phase III helped poor rural people help themselves by learning the skills they need to improve their livelihoods and the well-being of their families. The project built on the experiences of the two previous phases, which showed that poor farmers are worthy of credit. It demonstrated that farmers will take economic initiative when organized into self-help groups and provided with skills and market opportunities, including access to both private and public sector institutions. The first phase of the project established 2,000 groups, and the second phase helped form 32,700 such groups. The third phase helped set up about 60,000 groups. Women, whose education and empowerment have a strong impact on their families' welfare, accounted for about 50 per cent of the participants. A principal feature of the project was mobilizing savings and improving access to credit, which are fundamental in enabling poor rural people to overcome poverty. All in all, the project was expected to reach 700,000 families, or about 3.5 million rural poor people. The project was co-financed by the Asian Development Bank. In 2007/2008, IFAD will formulate a new Country Strategic Opportunities Paper (COSOP). Assessment of the rural sector policy and institutional framework will be the basis for identifying strategic priorities. Source: IFAD |
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Ongoing IFAD operations