In order to implement a strategy of accelerating poverty reduction, targeted programmes are conducted. Poverty reduction programmes directly target those considered poor and vulnerable. Poverty alleviating programmes aimed at those in need are expected to be more effective.
Cluster I poverty alleviating programmes target individual groups, the first of which being households/families. Programmes include: Family Welfare Programme (Program Keluarga Harapan, or PKH), a conditional cash transfers programme, as well as direct unconditional cash transfers and in-kind direct assistance, such as the distribution of subsidised rice for the poor (Raskin), as well as appeals to vulnerable communities, such as the disabled, senior citizens, orphans, etc.
The second group of poverty alleviating programmes targets communities, and uses the principles of community driven development. An example of these programmes is the Independent Community Empowerment National Programme (Program Nasional Pemberdayaan Masyarakat Mandiri, or PNPM Mandiri).
The third group targeted for poverty alleviation programmes is small and micro enterprises. The objectives of this programme is to provide economic access and empowerment to micro and small-scale entrepreneurs.
The fourth poverty alleviation programme group aims to increase access to basic services and improve the quality of life for the poor. Programmes in this group are those which directly or indirectly can raise the economic activities and welfare of the poor.