In order to achieve set poverty targets, acceleration steps are required through sharpening the objectives and improving the implementation of poverty alleviation programmes. In executing its duties, the National Team for Accelerating Poverty Reduction (TNP2K) is mandated to complete five major tasks, which later became the short- and medium-term achievement priorities.
Social protection programmes such as Family Welfare Programme (PKH), BLT, Jamkesmas, Raskin and BOS are key programmes for targeted poverty alleviation. Nevertheless, targeting must be refined to increase programme effectiveness. A lack of effectiveness is caused by programmes using different targeting approaches and beneficiary databases, resulting in relatively high inclusive errors and exclusive errors. As such, improvements to overall programme performance will be made through the unification of the national targeting system.
Short- to medium-term priorities to refine the implementation of health assistance for poor families includes: 1) formulating and determining the best healthcare benefits provider; 2) studying healthcare cost structures for the poor; 3) determining the benefit packages; and 4) compiling rational work plans, including a calculation of the costs involved.
The Family Welfare Programme (Program Keluarga Harapan, or PKH) is a social protection programme that provides cash assistance to Poverty Stricken Households (Rumah Tangga Sangat Miskin, or RTSM) and members of targeted household (Rumah Tangga Sasaran, or RTS) who are required to meet a set of pre-defined terms and conditions. The short-term objective of this programme is to reduce the financial burdens felt by RTSMs, while the long-term objective is to break the inter-generational chain of poverty, allowing for escape from the poverty trap.
The implementation of PKH also supports attempts to achieve the Millennium Development Goals (MDGs). The five MDGs that will be supported by PKH are: 1) to reduce poverty and hunger; 2) to provide basic education, 3) to promote gender equality, 4) to reduce baby and toddler (infant) mortality rates; and 5) to reduce maternity mortality.
Seeing the significant benefits of conditional cash transfers (CCT), the SBY-Boediono government set a target that by the end of 2014, PKH should have been enjoyed by all RTSM in Indonesia, or around three million families. To that end, various improvements have been undertaken to ensure that PKH is carried out as a CCT programme.
The short- to medium-term priorities of community-based poverty alleviation programmes is to integrate the Independent National Programme for Community Empowerment (PNPM Mandiri) with village/district planning and financing facilities including: 1) integrating other community empowerment programmes to PNPM Mandiri; 2) improving the contributions of local/regional governments to PNPM Mandiri; 3) integrate PNPM Mandiri with village/district planning; and 4) integrate PNPM Mandiri with financing facilities beyond the state/regional budgets (APBN/APBD).
A well-functioning financial system is a prerequisite of a successful economy and social development that reach each individual communities. Market and financial institutions play an important role in distributing funds to the most productive economy activities and allocating risks for the best prepared economic actors to take. As such, they play a role in overcoming negative impacts linked to imbalances between information and transaction costs – two classic causes of market failure – to eventually encouraging economic growth, equitable opportunities and welfare, as well as alleviating poverty.
Realising the importance of financial sector in efforts to alleviate poverty, TNP2K has the mandate of taking steps in increase the commitment of the government, private sectors and the general public in creating inclusive financial systems.