It's Great: World Bank lends $500+ million to Indonesia’s Community Empowerment Program


Indonesia’s largest community-driven poverty reduction program – the $1.3 billion National Program for Community Empowerment (PNPM Mandiri IV) in Rural Areas will be receiving a World Bank loan of $531 million.


The loan will be targeted towards helping communities improve local level governance and infrastructure such as village roads, and clean water and drainage systems. Indonesian Government will be using it provide block grants and implementation support to almost 5,000 rural sub-districts.

More than 60,000 rural villages will be benefitting from the Program which provides funds to poor rural and urban poor communities so they can invest in their own development priorities.


PNPM-Rural has significantly contributed in developing small-scale village infrastructure. PNPM and its predecessor, the Kecamatan Development Program initiated in 1998, have helped to build or rehabilitate over 71,000 kilometers of roads, 20,000 clean water systems, 16,000 irrigation systems, and 15,000 schools.

The World Bank in Indonesia manages a multi-donor support facility, the PNPM Support Facility (PSF), which provides key technical assistance and strategic oversight for PNPM Mandiri.

credit: http://www.microfinancefocus.com/

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