Australia works with Indonesia to better target its poverty reduction programs and build more resilient economic growth through improved service delivery, better research and strengthened governance. Supporting policy makers to use evidence and analysis to inform policy development is a critical aspect to all our engagements.
We also work with Indonesia to improve women's access to jobs and other sources of financial autonomy; increase support to women's businesses, including through micro-finance; and provide support to new women parliamentarians. Our law and justice program has increased access to justice for the poor, people with disabilities and vulnerable children, as well as combating corruption.
Governance for Growth (KOMPAK)
$80 million, 2015-2018
KOMPAK is working with the Government of Indonesia to achieve poverty reduction targets by improving the coverage and quality of basic services and by increasing economic opportunities for the poor.
Working at both the national and sub-national levels, KOMPAK consolidates and builds on investments made by the governments of Indonesia and Australia in community empowerment, service delivery, governance and civil society strengthening. KOMPAK works in seven provinces: West Nusa Tenggara, East Java, Central Java, Aceh, South Sulawesi, Papua and West Papua.
Empowering Indonesian Women for Poverty Reduction (MAMPU)
$110 million, 2012 – 2020
The Empowering Indonesian Women for Poverty Reduction program aims to improve the access of poor women to essential services and other government programs in order to achieve gender equality and women’s empowerment. The program will improve policies, regulations and government services through a partnership between inclusive coalitions of civil society organisations (CSOs), and the Government of Indonesia. The program focuses on five thematic areas: improving access to the Government of Indonesia’s social protection programs; improving conditions of employment and removing workplace discrimination; improving conditions for women's overseas labour migration; improving women’s health and nutritional status; and reducing violence against women. Building on Phase 1, CSO networks will collaborate with national and sub-national governments to strengthen women’s leadership, community participation and political representation in order to support better policies, regulations and services to meet the needs of poor women. Phase 2 commenced in January 2017.
Towards a Strong and Prosperous Indonesian Society (MAHKOTA Indonesia)
$40 million 2016-2019
MAHKOTA supports the Indonesian Vice President’s National Team for the Acceleration of Poverty Reduction. MAHKOTA’s objectives are to help enhance the efficiency and effectiveness of existing social protection programs, and to help Indonesia advance its agenda for developing a comprehensive social protection framework. MAHKOTA does this by generating knowledge to inform social assistance policies, define policy options and translate policy choices into programs; providing technical assistance; and providing high-quality monitoring and evaluation.
MAHKOTA builds on the work of the Poverty Reduction Support Facility, which built a unified database covering 97 million individuals, constituting the poorest 40 per cent of Indonesia’s population. This data base has assisted Indonesia’s largest social assistance programs to better reach and support the poorest 25 per cent of the population. Australia’s support also helped to design a compensation package that allowed Indonesia to reform its fuel subsidies.
Australia-Indonesia Partnership for Pro-poor Policy: The Knowledge Sector Initiative (KSI)
$60 million, 2012-2017
In order to deliver development benefits for its millions of poor people, Indonesia needs sound public policies supported by rigorous research and analysis. However, lack of demand from policy makers, inadequate sustained funding, and uneven technical capacity in Indonesian think tanks has resulted in little policy-relevant research emerging from domestic sources. Australia and the Indonesian government have developed KSI to address these issues by stimulating the production and use of quality research and analysis for policy decision-makers
Local Solutions to Poverty (LSP) [previously the National Program for Community Empowerment (PNPM)]
$191.5 million, 2008–20
LSP provides analytic and advisory support to help the Government of Indonesia (GOI) in reducing poverty and inequality through improvements to basic service delivery. It engages with central and sub-national governments, village communities and frontline service providers on a wide range of projects. From 2008 to 2014, LSP was a Multi-Donor Trust Fund known as the PNPM Support Facility (PSF). The PSF supported Indonesia’s National Program for Community Empowerment (PNPM), which was the Government’s flagship community driven development (CDD) program.
Launched in 2007, PNPM was one of the most successful CDD projects in the world. PNPM developed local economies through investment in small-scale infrastructure, employment generation and access to finance for small traders, including many women, and home-based businesses. It successfully empowered communities to build 132,397 kilometres of roads, 20,181 bridges and 21,234 clean water systems; and increased household expenditures of participating poor by an average of 11 per cent. PSF also provided effective support to GOI to help it scale up PNPM from 34,000 villages in 2008 to 63,000 in 2012. Almost $500 million in donor contributions, including $191.5 million from Australia, leveraged around $1.6 billion in Bank lending and $7.9 billion in GOI financing to realise these achievements.
In January 2014, the Government of Indonesia passed the national Law on Village Development (Village Law) to mainstream PNPM into government systems. Australia subsequently worked with GOI and the World Bank to develop a transition strategy for the Trust Fund and recalibrate much needed support towards enhancing the effectiveness of the Village Law and other reforms to Indonesia’s decentralised framework of governance and service delivery. PSF became LSP and is now focused on supporting GOI to improve the quality of life of poor and vulnerable Indonesians through locally-led innovations to improve basic service delivery such as Generasi Cerdas Sehat Project, the Teachers' Performance and Accountability (KIAT Guru) pilot and Early Childhood Education and Development (ECED) pilot.
Australia Indonesia Partnership for Justice (AIPJ)
$55 million, 2011-2017
The Australia-Indonesia Partnership for Justice works with key Indonesian justice institutions and civil society partners to increase access to justice for marginalised groups (particularly poor women, people with disability and vulnerable children) and to combat corruption. This includes valuable peer-to-peer exchanges with Australian legal institutions. With Australian support, Indonesian courts are taking less time to deliver judgments and are making written reasons for their decisions available for free to the public online. Australia has also helped Indonesia establish its first national legal aid system, under which poor individuals are accessing free legal advice and representation to help them resolve a range of criminal and civil disputes. Australia and Indonesia have agreed that AIPJ Phase II, valued at AUD 40 million over 2017 – 2021, will support key Australian and Indonesian institutions to continue close cooperation on law, justice and security issues.
$6.4 million 2013–2017
The Abdul Latif Jameel Poverty Action Lab Southeast Asia (J-PAL SEA) helps Indonesian policymakers address challenges to growth and poverty reduction by ensuring that more social policies are informed by robust evidence. Established at the Massachusetts Institute of Technology in 2003, J-PAL is a global network of over 140 professors and seven regional offices that conduct randomized evaluations to measure the impact of development and social programs in over 70 countries. It has helped scale-up programs reaching more than 300 million people, including 65 million Indonesians. Then-President Yudhoyono launched J-PAL SEA with Australian support at the University of Indonesia in 2013. J-PAL SEA builds partnerships with the Indonesian Government, domestic research organisations and the private sector to evaluate programs, translate this knowledge into policy change, and expand local capacity to generate and use robust evidence.
J-PAL SEA has increased the evidence base and informed policies related to Australia’s key objectives in Indonesia, including an inclusive society through effective governance and social protection, improving human development, and building effective economic institutions by improving government spending. J-PAL SEA has built strong partnerships with many Indonesian policymakers including Bappenas and the Vice President’s National Team for the Acceleration of Poverty Reduction (TNP2K). J-PAL SEA’s work with TNP2K on options to ensure subsidised rice reached vulnerable families saw additional support to Indonesia’s poorest 15.5 million households (around 65 million individuals), as part of the compensation package following the mid-2013 fuel subsidy reduction. With ten ongoing or completed studies in Indonesia to date, J-PAL SEA has also informed at least four major national policy decisions, and trained 500 local researchers and practitioners in evaluation methods. Australia is currently considering supporting a second phase of J-PAL SEA. Support is provided through a grant to MIT.
Program Peduli (formerly part of the PNPM program)
$30.9 million 2014–2018
Peduli promotes social inclusion to reduce poverty among marginalised people in Indonesia. It does this by increasing access to public services and social assistance, protecting human rights and improving government policies for six of Indonesia’s most marginalised groups. These groups are: vulnerable children and youth; remote indigenous communities reliant on natural resources; religious minorities; victims of human rights violations, including in 1965; male-to-female transgender (waria); and people with disabilities. Members of these groups are among Indonesia’s ‘invisible’ people. Poverty data often ignores them, and government and donor programs rarely reach them. Women in these groups are among the most disadvantaged and hardest to reach of Indonesia’s poor.
Peduli is led by the Coordinating Ministry for Human Development and Culture, and is implemented in partnership with 81 Indonesian CSOs in 84 districts across 26 provinces. Since commencing in April 2014, Peduli has assisted over 35,000 beneficiaries, and has strengthened inclusive government through dialogue and policy reforms. The program promotes broader public awareness of these groups through an innovative social media campaign. It is funded through a grant to the Asia Foundation.
Partnership for Knowledge-based Poverty Reduction (PKPR)
$23.5 million, 2010–2019
Through PKPR, Australia supports the Indonesian Government to strengthen efforts to reduce poverty and inequality by helping it make more evidence-based policy and program decisions in five main areas: improving equality of opportunity; more and better jobs; preventing and mitigating shocks; improving fiscal policy to reduce poverty and inequality; and monitoring and analysing poverty and inequality in Indonesia. PKPR’s strategic partners (the Vice President’s National Team for the Acceleration of Poverty Reduction and the National Development Planning Agency) agreed this new, five-component strategic framework in June 2016. Prior to that PKPR had focused on social policies and programs.
PKPR’s approach is based on delivering high-quality analytical services and technical advice on senior policymakers’ reform priorities, as well as cutting edge work on emerging issues in Indonesia such as urbanisation. The team’s 2015 flagship report on inequality, Indonesia's Rising Divide, is a leading example: it put Indonesia’s rising inequality firmly on the Government’s radar, and resulted in follow-up engagement with a range of ministers.