Development assistance in Indonesia
An inclusive society through effective governance in Indonesia
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)
- Australia Indonesia Partnership for Gender Equality and Women's Empowerment (MAMPU)
- Towards a Strong and Prosperous Indonesian Society (MAHKOTA Indonesia)
- Australia-Indonesia Partnership for Pro-poor Policy: The Knowledge Sector Initiative (KSI)
- Local Solutions to Poverty (LSP) [previously the National Program for Community Empowerment (PNPM)]
- Australia Indonesia Partnership for Justice Phase 2 (AIPJ2)
- Abdul Latif Jameel Poverty Action Lab Southeast Asia (J-PAL SEA)
- Program Peduli
- Partnership for Knowledge-based Poverty Reduction (PKPR)
Governance for Growth (KOMPAK)
$177.8 million, 2015 – 2022
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 outcome areas:
- Local government and service units better address the needs of basic service users.
- The poor and vulnerable benefit from improved village governance.
- The poor and vulnerable benefit from increased opportunities for economic development.
KOMPAK has entered its four-year extension following a positive independent review. Implementation will have a strengthened focus on addressing key constraints in service delivery related to health, nutrition, education, local economic development, and civil registration and vital statistics (CRVS).
Through KOMPAK, we engage with Bappenas (the Ministry of National Development Planning), the Ministry of Finance, Ministry of Home Affairs, and Ministry of Villages, to facilitate national policy and regulatory changes to enable improved health and education services and create job opportunities for the poor. KOMPAK is being implemented in 26 districts and 311 villages across seven provinces: Aceh, Central Java, East Java, West Nusa Tenggara, South Sulawesi, Papua, and West Papua.
|Name of document||Year published||Type|
|Governance for Growth (KOMPAK) one pager||2015||Draft investment summary|
|KOMPAK Work Plan 2017-2018 [external PDF]||2017||Workplan|
|Gender and Social Inclusion Strategy||2017||Strategy document|
|Joint Supervision Mission Report Implementation of KOMPAK Program In The Regions||2017||Review mission report|
|Independent Progress Review||2018||Review report|
|Management Response to Independent Progress Review||2018||Review management response|
|Performance Management Framework 2018-2022||2018||Framework|
|Program Logic and Ways of Working||2018||Program logic|
|Achievement Report 2015-18||2018||Report|
|KOMPAK Risk and Safeguard Management Plan||2018||Plan|
|KOMPAK Gender Equality and Social Inclusion (GESI) Strategy 2018 – 2022||2018||Strategy|
|KOMPAK Living Design Document||2019||Design|
|KOMPAK Sustainability Plan 2019 – 2022||2019||Strategy|
|KOMPAK Six-Monthly Report January – June 2019||2019||Report|
Australia Indonesia Partnership for Gender Equality and Women's Empowerment (MAMPU)
$108.3 million, 2012-2020
Now in its seventh 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 over 100 local organisations 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 3,000 local community groups, with a total membership of more than 60,000 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)
$80.8 million, 2015-2021
MAHKOTA supports Indonesia's National Team for the Acceleration of Poverty Reduction (TNP2K). 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 translating 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 to more effectively reach and support the poorest 25 per cent of the population. In 2017, this data was used to help the Indonesian government to reduce the number of households with subsidised electricity, with an estimated saving to the state of up to $1.6 billion.
MAHKOTA also supported TNP2K to produce a national strategy for the future of social protection in Indonesia, released in 2019. The strategy has fostered dialogue on further reforms, including establishing social pensions for the elderly and people with disability. MAHKOTA has also contributed to reducing inefficiency in the subsidised rice program by introducing an electronic voucher scheme, replacing direct rice delivery, and improving the program targeting for 10 million households.
|Name of document||Year published||Type|
|Draft Investment Summary for the next phase of social protection support in Indonesia: MAHKOTA||2015||Draft investment summary|
|MAHKOTA Guiding Strategy||2016||Program guiding strategy|
|MAHKOTA Evaluation Strategy||2018||Strategy|
|Indonesia's Non-Cash Social Assistance Reform: An Analysis of TNP2K's Contribution||2018||Evaluation|
- The National Team for the Acceleration of Poverty Reduction website
- The Future of the Social Protection System in Indonesia: Social Protection for All
Australia-Indonesia Partnership for Pro-poor Policy: The Knowledge Sector Initiative (KSI)
$105.5 million, 2012- 2022
The Knowledge Sector Initiative (KSI) is a joint program between the governments of Indonesia and Australia that 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. It was implemented by a consortium led by RTI International, in association with the Nossal Institute for Global Health, the Overseas Development Institute and the Australian National University. This first phase focused on building the capacity of 16 Indonesian policy research institutions.
KSI, now in its second phase (2017-2022), is working in a more focused way with Indonesian policy makers and research organisations to:
- improve the quality and applicability of research
- support increased public and private sector funding for research
- improve government information systems and processes and
- foster broader debate on Indonesia's development challenges, such as through support to the Indonesia Development Forum.
Local Solutions to Poverty (LSP) [previously the National Program for Community Empowerment (PNPM)]
$191.5 million, 2008-2020
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.
In January 2014, PNPM was mainstreamed into government systems under the national Law on Village Development. 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 under Indonesia's decentralised framework of governance and basic service delivery. These include activities such as Generasi Cerdas Sehat (Healthy and Smart Generation), analytical support to village governance reform, and pilots in village level economic development, teacher performance and accountability (KIAT Guru) and early childhood education and development.
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
|Name of document||Year published||Type|
|Australia Indonesia Partnership for Justice Phase 1 design document||2010||Design|
|Australia Indonesia Partnership for Justice II – Design document||2016||Design|
|AIPJ2 six monthly report (Apr – Dec 2017)||2017||Report|
|AIPJ2 six monthly report (Jan – Jun 2018)||2018||Report|
|AIPJ2 six monthly report (Jul – Dec 2018)||2018||Report|
|AIPJ2 six monthly report (Jan – Jun 2019)||2019||Report|
|Australia Indonesia Partnership for Justice phase 2 (AIPJ2): Independent Review||2019||Independent Review|
Abdul Latif Jameel Poverty Action Lab Southeast Asia (J-PAL SEA)
$16.5 million, 2012-2022
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 (MIT) in 2003, J-PAL is a global network of 157 affiliated professors at universities around the world and seven regional offices that conduct randomised impact evaluations to measure the impact of development and social programs in over 70 countries. J-PAL 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 the MIT for J-PAL SEA Phase II (2018-2021). Since January 2018, J-PAL SEA's focus has expanded to policy questions relating to inclusive growth, human capital and employment, domestic resource mobilisation, and inclusion.
The 'related links' provide access to several papers produced by J-PAL affiliated researchers.
|Name of document||Year published||Type|
|J-PAL SEA Phase I: Design Document 2012||2012||Design|
|From Evidence to Impact: Designing Effective Policies for Inclusive Growth in Indonesia (J-PAL Phase II Design Document 2017)||2018||Design|
|The Abdul Latif Jameel Poverty Action Lab Southeast Asia (J-PAL SEA) Phase I: Final Report||2018||Report|
|J-PAL SEA Monitoring Evaluation and Learning Plan||2018||Monitoring and Evaluation Framework|
$35.4 million, 2014-2020
Peduli is an Australian-Indonesian Government partnership managed by the Asia Foundation (TAF) with broad direction and engagement from the Coordinating Ministry for Human Development and Culture (Kemenko PMK). The Program is implemented through a network of 76 Indonesian civil society organisations in 69 districts across 20 provinces.
Through Peduli we are promoting social inclusion to reduce poverty among marginalised people in Indonesia. This includes efforts to increase access to public services and social assistance, increase social acceptance, protect human rights and improve government policies on social inclusion. The program focuses on six of Indonesia's most marginalised groups: vulnerable children and youth; remote indigenous communities reliant on natural resources; religious minorities; victims of human rights violations; male-to-female transgender (waria); and people with disabilities.
Since commencing in April 2014, Peduli has assisted over 75,000 beneficiaries, and has strengthened inclusive government through dialogue and policy reforms.
The program promotes broader public awareness through specific and targeted media to help build a more positive profile of these marginalised groups that have traditionally experienced negative stereotyping from the mainstream media and public.
|Name of document||Year published||Type|
|Peduli Program Snapshot||2016||Review|
|Understanding Social Exclusion in Indonesia||2016||Review|
|Summary of Peduli Gender Strategy||2016||Strategy|
|Peduli Monitoring, Evaluation and Learning (MEL) Framework||2018||Monitoring, Evaluation and Learning Framework|
Partnership for Knowledge-based Poverty Reduction (PKPR)
$32.7 Million, 2010 – 2020
Through the World Bank-managed PKPR trust fund, we support the Government of Indonesia 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. For example, the World Bank, through PKPR, has helped to the Indonesian Government to expand its Family Hope conditional cash transfer program from 3.5 million to 10 million poor households. PKPR is also supporting Indonesia's emerging human capital development agenda with an emphasis on skills development and job creation, and providing policy advice on supporting upward social mobility and more equitable and inclusive growth.
Our approach under PKPR is to deliver high-quality analytical and technical advisory services that is responsive to senior policymakers' reform priorities and emerging development policy issues in Indonesia. The team's 2015 flagship report on inequality, Indonesia's Rising Divide, and the 2019 report Time to ACT: Realizing Indonesia's Urbanization Potential are leading examples of how PKPR informs, influences and helps shape major policy priorities and forward-looking strategies on Indonesia's multi-dimensional inequality challenges and poverty reduction agenda.
* The Department of Foreign Affairs and Trade (DFAT) is committed to high standards of transparency and accountability in the management of the Australian aid program through publishing information on our website, including policies, plans, results, evaluations and research. Our practice is to publish documents after the partner government and any other partners directly involved in the delivery of the initiative have been consulted. Not all material published on this site is created by the Australian aid program and therefore not all documents reflect our views. In limited circumstances some information may be withheld for reasons including privacy and commercial sensitivity.