Rapid Appraisal of PNPM Neighborhood Development (and Poverty Alleviation Partnership Grant Mechanism)

The World Bank has had a long history of
supporting community driven development and urban upgrading
projects in Indonesia, reaching back to the 1970's. The
primary approach of all program nasional pemberdayaana
masyarakat (PNPM) urban projects is to provide block grants
at the kelurahan level to community trusts (BKM) that work
with their communities to identify, plan, and implement
activities (largely infrastructure) to improve urban
settlements and support poverty alleviation efforts. In
2009, the World Bank and the Government of Indonesia
launched two new pilot programs to build upon the success
and lessons of PNPM urban. These pilots were PNPM urban
poverty alleviation partnership grant (PAPG) and PNPM urban
neighborhood development (ND). To support project learning,
the World Bank has commissioned this rapid appraisal of PNPM
PAPG and ND with an aim to review broadly what is working,
what isn t working and what improvements can be made
explicitly with an aim to inform a future round of World
Bank supported urban project(s) that will include a scale up
of the PNPM ND approach while integrating some key elements
from PAPG (a hybrid approach). It should be noted that the
scaling up of PNPM urban ND has the potential to result in
one of the world s largest community driven slum upgrading
programs. The paper is divided into three sections. It
begins with a brief overview of the study methodology. It
outlines the project s design structure and key assumptions,
providing an analysis of each of the main project
assumptions and inputs with lessons learned from the field
visits. The final section offers project specific
recommendations. An extensive annex has also been provided
which includes brief overviews of each of the sites visited.