Target group. The target group for IFAD assistance will comprise the total rural population of Indonesia, an estimated 116.2 million people (31.3 million households). Of this total, 24.7 million people are living below the poverty line and 10.0 million people are vulnerable to falling into poverty. A subset of this target group will be the rural population of Papua and West Papua comprising 507,000 rural households, or 1.83 million people, living in 8 districts, 28 subdistricts and 140 villages. In these two provinces, priority will be given to improving the livelihoods of the indigenous population. In the other subdistricts covered by the PNPM, the emphasis will be on social and economic development. Programme objectives. The programme's overall development objectives are to reduce poverty and improve local-level governance in rural Indonesia. To achieve this, the programme will promote community participation in development planning and management. Programme description. The programme will have five components:
Important features. The PNPM will provide the umbrella framework for all future community empowerment initiatives for poverty reduction in Indonesia, including the proposed IFAD assistance. The programme design is fully in line with the harmonization and alignment agenda of the Government and external development agencies. It is also consistent with the IFAD Strategic Framework 2007-2010 and with the Fund’s country strategy for Indonesia. The design of the IFAD assistance includes two significant innovations in the context of Indonesia. First, for the first time an IFAD programme investment will cofinance a nationwide rural poverty reduction programme. Second, in the very poor rural areas of Papua and West Papua, the focus will not be on just increasing production but also on improving the marketing of agricultural produce by linking producers with private-sector marketing enterprises. This will enable producers to earn more for their high-quality and high-value produce. Potential cofinanciers. In addition to IFAD, the World Bank, the Japan Bank for International Cooperation, the Australian Government's overseas aid programme (AusAID), the Danish International Development Agency and the United Kingdom’s Department for International Development are expected to cofinance the national programme. Photo caption 1: IFAD photo by Y. Wang - Potential beneficiaries of an IFAD-funded project discussing their priority needs. |
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Programme area. IFAD support will be provided within the framework of the National Programme for Community Empowerment (PNPM) and will cover all subdistricts nationwide targeted by the PNPM. It will focus in particular on improving rural livelihoods in Papua and West Papua – Indonesia’s easternmost provinces, which together have the highest rural poverty rates in the country.