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Supplementary written evidence submitted by the Indonesian Embassy in London IntroductionThis report was prepared to respond to the letter from International Development Committee inquiring about the effectiveness of current UK Department for International Development (DFID) in addressing the challenges presented by urban poverty in partner countries. The Ministry of Housing has not received any assistance from DFID, however in this report will highlight the Ministry's work and case studies related to the key issues of: · The provision of basic services and infrastructure in slums · Housing finance · Post-disaster reconstruction · Security of tenure We hope that this report is useful for DFID in supporting developing countries in dealing with urbanization and poverty. 1 | Background of Indonesian Urban Development
The Republic of Indonesia is an equatorial archipelago of
over 17,500 islands (6,000 islands inhabited) extending about 3,200 miles or
5,150 kilometers East to West and 1,250 miles or 2,012 kilometres North to
South. It is the largest archipelago in the world with 1,919,443 square
kilometers or 741,098 square miles divided into 33 provinces. The The level of urbanization has reached 50% in 2008 and is
projected to reach almost 68% by 2025, mostly generated by migration from rural
to urban areas (contributing 30-40% of urban population growth), natural
population growth, and reclassification of areas from rural to urban.
Geographically urbanization in Urban challenges in Indonesia are increasing with regard to urban poverty, pollution, traffic congestion, crime and violence, lack of access to almost all basic urban services and facilities such as clean water, sanitation, solid waste management, energy supply as well as haphazard urbanization or emergence of informal settlements (slums and squatters). In the political sector, the decentralization in The National Long Term Development Planning is a national planning document which explicates the goals as stated in The Constitution of 1945 through national development vision and mission for 20 years period (2005 - 2025). The objective of this long term plan is to pursue 'sustainable development' which translates to a more compact, efficient, comfortable, healthy, prosperous and productive urban settlement. In addition, the National Mid Term Development Plan endeavours to reduce the unbalance development between islands, or even cities/urban areas.
2 | Policies and Programs2.1 Urban and Rural Planning and ManagementSpatial plan is not a new thing in Indonesia. Municipal (town and city) administrations applied urban development law (stadvorming ordonantie) issued by Dutch Administration in 1948 until then in 1992 Government of Indonesia issued its own Law 24/1992 concerning Spatial Management (the law was considered ineffective in terms of land use control and then was replaced by Law 26/2007). Under the Law 24/1992, government at all levels was obliged to prepare spatial plan. As the result, almost all provinces, municipals and regencies had already had at least a comprehensive spatial plan which was functioned as guidance in urban and regional development. Since Law 24/1992 did not regulate sanction, violation to prevailing spatial plan was not really considered as a wrong doing. Subsequently, violations were common and spatial plan became ineffective in directing spatial development. Revision of spatial management law was not about strengthening regulations related to land use control but also broadening the scope of spatial management aspects. Consequently, spatial plans previously prepared are subject to adjustment in order to incorporate all spatial management aspects. Law 26/2007 defines the time limit for provincial governments to complete their comprehensive spatial plan adjustment by two years after the law was put into effect. For local government, comprehensive spatial plan adjustment should be completed within three years after the law was put into effect. The time limit is considered as "very short" but it represents that the founder of the law thought that spatial plan is very important and need to be prepared quickly. The following table shows the status of the comprehensive spatial plan of provinces, municipals and regencies:
Table 2.1 Status of the Comprehensive Spatial Plan
Note: *) Status of January 2009 Source : Ministry of Public Works, 2009 2.2 Urban Poverty Alleviation: Empowering CommunitiesThe Government of Indonesia is committed to achieving the millennium development goals (MDGs). One such target within the MDGs is to reduce the poverty level by 50% in the year 2015. To reduce poverty from 16.58% in 2007 to 8.2% by the end of 2009 and to cut the unemployment rate from 10 percent in 2006 to 5 percent by 2009, On August 2006 the Government of Indonesia (GOI) launched the first nationwide poverty reduction program, comprising three cluster programs: a. The Social Protection System Program, primarily through the conditional cash transfer system targeting poor communities; b. The National Program for Community Empowerment or Program Nasional Pemberdayaan Masyarakat (PNPM); and c. The Micro Credit Program with focus on promoting pro-poor growth, with a special focus on small and medium enterprises. The National Community Empowerment Program or "Program Nasional Pemberdayaan Masyarakat Mandiri (PNPMM)", as an 'umbrella policy' to create synergy amongst the various community empowerment programs and initiatives within the GOI, which have begun in 2007 and will run through 2015. The PNPMM provides a basic framework for all central government poverty reduction programs and uses as a basis two existing poverty reduction models - community empowerment in urban and in rural areas through the Urban Poverty Project (UPP) and Kecamatan Development Project (KDP). Linked to these projects are an increasing number of sectoral programs that provide specialized inputs to improve the delivery of poverty services. Over time, local governments will be expected to integrate education, health, and agricultural service provision into PNPMM. The PNPMM overall objective is to reduce poverty by promoting community participation in development planning and management.
The specific objective of PNPMM-Urban are: a. Achieve an "Empowered and Independent" community that is capable of overcoming local poverty problems through the application of the government policy of National (Independent) Community Empowerment Program (CNEP); b. Increase the capacity of the local governments to incorporate the participative development model as a basis of partnership with the community and local interest groups; c. Promote harmonization and synergy amongst the various community empowerment programs to optimize poverty alleviation; d. Increase the benefits towards the poverty affected communities towards increasing IPM and achieving the MDGs; The PNPMM-Urban in 2007 has covered implementation of the program in 7,273 kelurahans in all 33 provinces in Indonesia. While the PNPMM-Urban in 2008 would expand to 8,813 kelurahans in 955 urban kecamatan in 245 cities/districts through the 33 provinces. This assistance is expected to increase to 11,039 kelurahan by 2009.
Table 2.2 Total Financial Coverage of PNPMM and Community Grants
Source : Ministry of Public Works, 2009
PNPMM-Urban design builds on the existing portfolio of CDD (UPP) operations. The executing agency is the Ministry of Public Works. A summary of the three components is given below; a. Community and Local Government Capacity Building This component would support the facilitators to carry out social intermediation activities, training, workshops, press releases/conferences, and other mass communication activities, meetings and focus group discussions, and production of socialization materials and publications. This component would also support the training and socialization of local government staff on the PNPMM and leverage support from local governments to share costs of subprojects. b. Kelurahan/Community Grants loans This component would support block grants for kelurahans to execute the sub-projects identified in the community planning. These sub-projects cover an open menu of poverty alleviation activities with a short negative list. Typical activities for this component fall into three categories: infrastructure, revolving loan funds, and social assistance. c. Implementation and Technical Assistance This component includes the monitoring and evaluation of the project. It will also support of the consultants, and others technical assistance.
The PNPMM-Urban in 2007 has shown the impact to proverty reduction. The number of poor people in the year of 2007 as 23,6 milllion compare with the year of 2000 as 26,4 million (BPS 2008). Thus, the potential impacts of the PNPMM are projected to be significant. A preliminary economic assessment of the program showed that by 2009, when the program would cover all kecamatans at the proposed benefit level of IDR 3 billion per kecamatan, it could benefit nearly 14 million families and increase their income by 11 percent on average by providing about 60 days of work. Some 7-9 million households would be pulled out of poverty. The additional income would benefit workers by raising the wages of all unskilled workers by reducing the competition from desperate workers who drive wages down. By developing economically productive roads, irrigation and drainage works, and water supply and sanitation works, the PNPMM will permanently increase employment and income; this increased purchasing power would help to activate village economies. 2.3 Water and Wastemater (MDGs)MDG for water and wastewater (Target 10) recommends to half the proportion of people without sustainable access to safe drinking water and basic sanitation by 2015. The primary indicator for measuring Target 10 is the proportion of populations who have access to safe water and sanitation. The MDG target for access to safe water in Indonesia is 80 % in year 2015. This access to safe water hopefully will be achieved as targeted in year 2015 with 48 % piped water system and 32% non-piped water system. Efforts to achieve MDGs target for water and wastewater in Indonesia has been conducted through improvement of water and wastewater quality, financial, institutional and legal support. Particularly for institutional and legal support, Indonesia has enacted laws and regulations (in term of presidential and minister regulations) to guide water and wastewater management and technical standards.
Figures 2.1 Scenario to Meet NMDP and MDG Target
Source : Ministry of Public Works, 2009
The MDG target for access to basic sanitation facilities in year 2015 is 65.5%. Meanwhile, access to basic sanitation facilities in Indonesia in year 2007 have already achieved 69.3%. But, still there is 20% open defecation in urban and 40% in rural area. As consequently, 76.3% of 53 rivers in Java, Sumatera, Bali and Sulawesi island contaminated by organic pollutant, and 11 main rivers heavily contaminated by ammonium. There is still room for improvement from basic sanitation to adequate sanitation. Access to adequate sanitation can be further improved by developing policy and institutional frameworks, promoting health seeking behavior, increasing capacities, building sanitation facilities in urban areas, and setting up a database and information system on basic sanitation. As targeted in National Mid-term Development Planning, in the end of 2009 should be free from open defecation.
Figures 2.2 Population Acces to Basic Sanitation Facilities Accroding to Rural, Urban, and Total Rural and Urban Areas (in per cent)
Source : Ministry of Public Works, 2009 2.4 Financing Affordable Housinga. Subsidized Home Mortgage Program
Table 2.3 Target and Achievement of Housing Finance in Medium-Term Development Plan 2004 - 2009
Source : State Ministry of Public Housing, 2009 b. Stimulants for Self-Help Housing DevelopmentDuring the period 2006 - 2008 the stimulant program has been implemented in 26 provinces throughout Indonesia with total funding from the National Budget of Rp. 73 billion (1 USD = Rp. 11.000) for 2009 (9000 units) A total number of 18.280 housing units were improved/constructed during the period of 2006-2008 as shown in the following table. Table 2.4 Realization of Self-Help Housing Development 2006 - 2008
Source : State Ministry of Public Housing, 2009
Other advantages gained from this program are: 1. The allocation of provincial and local government local budget for housing sector; 2. The restructuring of provincial/local government administrative organization to take responsibility of housing development; 3. The participation of other stakeholders in low-income housing development such as the private sector (through corporate social responsibility funds), NGOs, local universities and cooperatives.
Formal land rights were not a prerequisite in the above programs under the condition that the Local Government provides a Letter of Recommendation. In Pekalongan ( 2.5 Post-reconstruction DisasterTwo years after the earthquake housing reconstruction has been completed. Housing reconstruction received highest priority, because many people use their house not only for shelter, but also to make a living, for instance by having a shop or a workshop, or by renting out rooms. Therefore, reconstruction of houses was essential for recovery of peoples' livelihoods. Now that houses have been rebuilt and people are resuming their economic activities, the communities are eager to create a safer and healthier living environment and to make sure they are better prepared for future disasters. Central Java is a disaster-prone area. Many villages are not only exposed to earthquakes and tsunamis but to a wide range of other possible hazards such as volcanic eruptions, draughts and flooding, landslides and large-scale erosion. In the past, people have more or less accepted these hazardous natural conditions as inevitable. The JRF initiated community-based planning process has increased awareness that advance planning and investment in mitigation and preparedness activities can reduce loss of life and economic impact of disasters. Because of the limited resources in terms of available funding for preparation and project implementation, the ongoing JRF CSRRP disaster risk reduction component had to be limited to 101 villages in total. The actual need is much higher; so far a total of 243 villages in 7 districts (Kabupaten) have been proposed for this program component. The Central-Java Province has expressed its desire to include even more Kabupaten in the program, not only to achieve a larger impact in terms of disaster risk reduction, but also to engage and train more district governments in preparing for future disasters. The ongoing preparation of community settlement plans has increased the awareness of communities on disaster risks and options to mitigate these risks. People make no distinction between exposure to natural disasters and exposure to public health hazards related to poor water supply, sanitation and solid waste management. This type of health hazards would not cause instantaneous large-scale destruction associated with natural disasters, but nevertheless the communities are aware that the risks are severe because of continuous exposure, which would potentially cause many victims over the years, especially amongst the poorest. In many of the villages where community settlement plans are being prepared it was found that water supply, sanitation, and solid waste management problems are strongly related to previous disasters. Therefore it is proposed to expand the scope of the JRF CSRRP to include improvement of water supply, sanitation and solid waste management.
a. Water SupplyThe latest earthquake and the eruption of Mount Merapi have caused considerable changes in ground water tables resulting in prolonged periods of water shortages. Most people in the villages in the project area rely on dug-wells for drinking water supply. Since the latest earthquake many wells fall dry during the dry season, even though they may be as deep as 20 meters, meaning that people have to walk long distances to collect water from natural springs in the vicinity. Many households have to supplement the available water during the dry season with water supplied by tanker trucks, which is very costly. Normally, during the dry season, water from dug wells is also used for agriculture. The dry season may last 4-6 months. During this period people can grow and harvest corn and groundnuts. Farmers manually water their plants one by one, using water from dug-wells in their fields. The drop in groundwater table means that also these wells fall dry. As a result the fields of these farmers now lay idle during the dry season, resulting in a considerable loss of income and often pushing the farmers back below the poverty line. Most communities would greatly benefit from small-scale sub-village level (dusun) drinking water supply systems serving a few hundred households at most. Such systems would consist for instance of a single borehole (deep well) or a captured natural spring, a pumping station, a reservoir on high ground and some transmission pipes to supply water under gravity to clusters of houses. Additionally, construction of communal reservoirs to harvest rainwater would in some villages serve as an appropriate and sustainable technology to supplement water from other sources, especially for agricultural purposes during the dry season. b. SanitationThe JRF housing program has supported 15,153 households constructing an earthquake resistant house. Although the JRF housing program was completed in July 2008, many houses are not yet equipped with sanitary facilities. The amount of assistance provided (IDR20 million per house) is sufficient to construct an earthquake resistant structure for a core house of 36m2. However, beneficiaries are expected to complete the house by using their own funds. Not all beneficiaries have been able yet to finance construction of a toilet and septic tank and many have expressed the need to provide communal facilities. Lack of proper sanitation is a potential health threat, especially to the poor. In the communities that have already prepared their community settlement plans it appears that many people (in some villages up to 30% of the population) still utilize rivers and canals for defecation, bathing and washing. The majority of the population uses simple private pit-latrines. Because of high soil permeability these latrines may cause pollution of nearby dug-wells. A specific sanitation issue in many villages is related to husbandry. Many people have one or two cows, goats and a few chickens in a stall next to their house. The earthquake has not only destroyed houses, but also stalls and many people have not yet been able to rebuild proper stalls for their cattle. Some villages have proposed to build communal stalls. This would reduce environmental health problems and create opportunities for production of organic fertilizer and biogas because of scale advantages. These initiatives deserve to be supported and linked with JRF livelihood program components. c. Solid Waste ManagementMany communities have identified flooding and stagnant water as serious disaster risks. Drainage networks often don't function properly because of general lack of tertiary drainage and because of dumping of solid wastes in open drains and channels. As a result stagnant water frequently occurs, raising concerns over mosquito breeding. Solid waste piling up in riverbeds reduces discharge capacity and is one of the causes of flooding. The JRF disaster risk reduction program will address stagnant water and flooding as major disaster risks, including (re-) construction of tertiary drainage as necessary. However, without proper solid waste management this problem cannot be fully resolved. In many rural villages with low residential densities burying of waste is an appropriate solution. In such cases increased community awareness and education would be sufficient to improve conditions. Closer to the urban centres, in villages with higher residential densities, solid waste management systems should be organised using the existing collection and disposal facilities of nearby towns. In some villages women groups have taken the initiative to collect waste in separate buckets for organic material, paper and plastics. These women groups also process waste by making compost out of organic material, and by selling paper and plastics. In one village (Argorejo) women groups even recycle plastics by making plastic bags and sandals. Dry organic materials, especially leaves, are recycled as burning material for stoves. These encouraging small-scale initiatives for solid waste management and recycling improve the living environment, reduce health hazards, and provide income for the women engaged in these activities. Such existing initiatives should serve as examples for other villages. Linkages with the JRF livelihood program component will be intensified to maximise the benefits for the communities. d. Community Education and Quality AssuranceCommunity capacity building is crucial to ensure sustainability of assets created under this project. The scope of work of the community development facilitators should be expanded to cover all issues related to water supply, sanitation and solid waste management, i.e.: · Educate the communities on public health issues · Build community capacity to operate and maintain the assets created under the project · Ensure that all infrastructure and facilities adhere to adequate quality standards · Ensure that user contributions are collected and are sufficiently large to cover operation and maintenance expenses Raising awareness on public health issues and the need to change old habits on sanitation and waste disposal is essential to reduce public health risks. The community development facilitators should assist in educating the communities accordingly. The community capacity building effort should be expanded to enable the beneficiary communities to operate and maintain the assets created under the project. This would include establishment and training of community-based organisations (CBO) for operation and maintenance of water supply infrastructure and facilities, public sanitation facilities (MCK), and solid waste management. Best practise initiatives in the project area, such as separate collection of organic waste, plastics and paper, and waste recycling, should serve as examples to build capacity in other communities. Community-based organisations would operate and maintain the water supply facilities on behalf of the beneficiaries. The facilitators should educate and train these CBOs to ensure that water consumers will pay a user fee sufficiently large to cover all operational and maintenance costs, including depreciation costs of pumping equipment. Quality assurance would first of all include high quality standards for construction of infrastructure and facilities. In many villages current practise is to save investment cost by utilising inferior materials such as pvc for water pipes and low capacity pumps. This results in high maintenance costs because of frequent pipe bursts and breakdown of pumping equipment. JRF CSRRP should only support construction of high quality works and procurement of good quality equipment. It is suggested to promote the use of solar panels to generate power for pumping equipment in order to reduce operational costs and increase overall environmental sustainability. e. Local Government Capacity BuildingThe community-driven approach is a leading principle of JRF-CSRRP aiming to empower communities to help themselves. However, for sustainability of project achievements it is of paramount importance that local government is fully engaged during the entire project cycle and committed to sustain the project outputs, to maintain assets created through the project and to ensure funding for operation and maintenance as necessary. Local government capacity building should ensure that local government takes all necessary precautionary measures to mitigate disaster risks in anticipation of future disasters and is well prepared to handle disasters whenever they occur. This is achieved through regular consultation, training and workshops involving all levels of government. Local government staff participates in project activities enabling transfer of knowledge in the field on community-based approaches and disaster risk reduction. Infrastructure deficiencies as identified by the communities and possible improvements are discussed with relevant government agencies as necessary. Local government is also closely involved in devising emergency evacuation plans, including regular simulation exercises. The community settlement plans include an integrated five-year investment program with physical and non-physical components, only part of which is supported by JRF. Other projects should be financed and implemented through regular government budgets (APBN, APBD, etc) by the responsible government agencies. Therefore, community settlement plans must be approved by local government (Bappeda Kabupaten), which ensures appropriate ownership and follow-up. In consultations with local government special attention is given to spatial planning and building control measures in hazard zones (landslides, riverbank erosion, tsunamis, etc.), to be implemented through local planning policies and decrees, including enforcement measures as necessary. During design and construction stage regular consultation meetings are held with relevant local government agencies, especially Public Works and Pengairan, to make certain that designs and construction works adhere to government specifications and requirements, which is essential to ensure both an adequate sense of ownership and appropriate maintenance.
2. 6 Security of TenureThere is still no consensus on the translation of security of tenure in Bahasa Indonesia. For some institutions, security of tenure is considered as legal rights to land, leading to programs that support land certificates for the urban poor. The PRONA (Program Nasional) and LARASITA (Services for Land Certification) are programs delivered by the National Land Agency to reduce administration fees and speed up the process for the low-income communities. These programs are mostly targeted for communities in rural areas. In urban areas, land issues are more complex. Slums and
squatters along riverbanks and railways are most common in large cities of Forced evictions still occur in major cities such as
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