We work with Indonesia to help 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 of 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, 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. It has also contributed to countering violent extremism.
Governance for Growth (KOMPAK)
$81 million, 2015-2018
KOMPAK is an innovative program that supports the Indonesian government to reduce poverty and inequality by increasing economic opportunities for the poor and by improving access to, and quality of, basic services.
Under KOMPAK we work in three key areas:
- responsive and accountable frontline services in health, education and obtaining legal identity
- inclusive and community-led village development and improved village governance
- increasing economic opportunities for the poor in off-farm employment.
Through KOMPAK, we engage with Bappenas (the Ministry of National Development Planning), the Ministry of Finance, Ministry of Home Affairs, Ministry of Villages, and Coordinating Ministry for Human Development and Culture, to facilitate national policy and regulatory changes to enable improved health and education services and create job opportunities for the poor. KOMPAK is being implemeted in 26 districts and 311 villages across seven provinces: Nusa Tenggara Barat (NTB), East Java, Aceh, South Sulawesi, Central Java, Papua and West Papua.
Empowering Indonesian Women for Poverty Reduction (MAMPU)
$108.3 million, 2012-2020
Now in its fifth year, the MAMPU program is Australia’s main vehicle to empower women and improve gender equality in Indonesia. We achieve this by developing women’s collective capacity and helping them to influence decision-making at multiple levels – from the village to national parliament. This process confronts and challenges the social norms that constrain what is socially acceptable for women and girls to do.
At the heart of our approach are selected Indonesian civil society organisations (CSOs) that champion women’s issues – the MAMPU partners. Through MAMPU we directly and indirectly support 108 partners at national and sub-national levels, working in almost 1,000 villages across 27 of Indonesia’s 34 provinces. MAMPU supports these partners to act more collectively and with allies in government and parliament to influence policy changes that will improve women’s lives.
Since 2014, MAMPU partners have established more than 2,200 local community groups, with a total membership of more than 55,000 women. Through these groups, women are supported to express their views, convey their priorities publicly, and influence the allocation of state resources for wider benefit, including access to essential services. This network plays a pivotal role in shaping government reforms to the benefit of women.
Towards a Strong and Prosperous Indonesian Society (MAHKOTA Indonesia)
$40.2 million, 2015-2019
Through MAHKOTA we support 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. We do this by:
- generating evidence to inform social assistance policies;
- defining policy options and translate policy choices into programs;
- providing technical assistance;
- providing high-quality monitoring and evaluation.
Our work under MAHKOTA builds on the success of the Poverty Reduction Support Facility, which helped the Indonesian Government build a unified database covering 97 million individuals, constituting the poorest 40 per cent of Indonesia’s population. This database has helped Indonesia’s largest social assistance programs to reach and support more effectively the poorest 25 per cent of the population.
National Team for the Acceleration of Poverty Reduction
Australia-Indonesia Partnership for Pro-poor Policy: The Knowledge Sector Initiative (KSI)
$109 million, 2012- 2022
The Knowledge Sector Initiative (KSI) is a joint program between the governments of Indonesia and Australia. It contributes to more inclusive and equitable growth in Indonesia by supporting the production of high-quality public policy grounded in rigorous research, analysis and evidence.
The first phase (AUD60.5 million) commenced in May 2013 following a three-year pilot. Now in its second phase (2017-2022), we are working to deliver KSI with policymakers and research organisations to improve the quality and applicability of research, support increased public and private sector funding for research, and improve government information systems and processes. Through KSI we will also foster broader public debate on Indonesia’s development challenges and promote an approach to addressing these challenges which draws on robust data and evidence of what works in the Indonesian context.
Local Solutions to Poverty (LSP) [previously the National Program for Community Empowerment (PNPM)]
$191.5 million, 2008–20
The World Bank-managed LSP Multi-Donor Trust Fund is used to fund analytical and advisory support to help the Indonesian Government to reduce poverty and inequality through improvements to basic service delivery. Through this program we engage 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 Indonesia’s flagship community-driven development (CDD) program, and one of the most successful CDD projects in the world.
Australia Indonesia Partnership for Justice Phase 2 (AIPJ2)
$40 million, 2017-2022
The Australia-Indonesia Partnership for Justice Phase II (AIPJ2) brings two previous Australian aid investments, the Australia Indonesia Partnership for Justice (AIPJ) and the Australia Indonesia Security Cooperation Program under a single investment to strengthen the rule of law and the security environment in Indonesia. It focuses primarily on leveraging Indonesia’s own resources to support a range of policy changes. AIPJ2 is a flexible facility to enable iterative programming, in line with the reform priorities of both governments and robust partnerships that have developed between Australian and Indonesian institutions.
In support of the overall goal “Strong and accessible justice and security institutions that enhance respect for enforceable rights and rules-based governance systems, over time contributing to stability and prosperity in Indonesia and the region”, AIPJ2 works under five pillars:
- Transparency, accountability and anti-corruption
- Countering transnational crime and security strengthening
- Promoting tolerance and countering radicalization
- Prison reform
- Gender equality and disability rights
Abdul Latif Jameel Poverty Action Lab Southeast Asia (J-PAL SEA)
$16.4 million, 2013–2021
Our work under 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 expand programs to reach over 300 million people, including 65 million Indonesians. Then-President Yudhoyono launched J-PAL SEA with Australian support at the University of Indonesia in 2013. Through J-PAL SEA we have built 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.
On 31 May 2017, we signed a new four-year $10 million agreement with J-PAL SEA for Phase II (June 2017 – December 2021). Commencing in January 2018, this will expand the focus of J-PAL SEA’s work from social programs to policy questions relating to inclusive growth, human capital and employment, domestic resource mobilisation, and inclusion. Support is provided through a grant to Massachusetts Institute of Technology.
$13.1 million, 2016–2018
Peduli was previously part of the National Program for Community Empowerment (PNPM), now known as the Local Solutions to Poverty. Through Peduli we are promoting social inclusion to reduce poverty among marginalised people in Indonesia,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.
Peduli is led by the Coordinating Ministry for Human Development and Culture, and is implemented in partnership with 81 Indonesian civil society organisations in 84 districts across 26 provinces. Since commencing in April 2014, we have assisted over 35,000 people. The program promotes broader public awareness of marginalised groups through an innovative social media campaign.
Partnership for Knowledge-based Poverty Reduction (PKPR)
$26.9 million, 2010–2019
Through the World Bank-managed PKPR, we support the Indonesian Government 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.
Our approach under PKPR is to deliver 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.