PROGRAM KELUARGA HARAPAN (INDONESIAN CONDITIONAL CASH TRANSFERS)

Presented to Asian Development Bank Conference

Manila, April, 17, 2013

Dr. Oetami Dewi
Deputy Director for Indonesian CCT Program Ministry of Social Affairs

Content
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What is PKH (Objectives, conditions, target group, payment schedule) Implementing Agency (ies) PKH Operation Cycle Challenges/Lessons (Governance Issues on CCTs) Innovations on Governance in PKH Conclusions

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PKH Map

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WHAT IS PKH (PROGRAM KELUARGA HARAPAN)

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PKH provides cash transfer to selected very poor households/families. They have to meet specific conditions to improve human capital (education and health) of children. Started in 2007 as pilot with 400,000 HHs. By end of 2012, 1.5 million HHs enrolled. The program plans to increase the number of beneficiaries to 3.2 million HHs (aboout 80-90% of extreme poor) by 2014
Eligible HH are those having: pregnant and lactating mothers, children 0-6 years old, children enrolled in primary and secondary schools, or children 15-18 year olds who have not completed primary school.

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PKH AT A GLANCE: 2007-2013

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2007 Number of HHs(thousand) Budget allocation (Rp billion) Provinces (Total: 33) Districts/Cities (total 500) Subdistricts 400 800 7 48 337

2008 642 1.000 13 70 637

2009 720 1.100 13 70 781

2010 816 1.300 20 88 946

2011 1.116 1.600 25 119 1.151

2012 1.516 1.800 33 169 2001

2013 2.400 2.400 33 336 3429

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Conditions to be met by beneficiaries:

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Pregnant mothers and toddlers should visit the community health centres (Posyandu/Puskesmas) to have their pregnancy and health examined.

Children of PKH beneficiaries should be enrolled in schools and must attend at least 85% of school days per month.

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Cash Schedule
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Payment Schedule
Fixed Payment Payment for beneficiary with: a. Pregnant/lactating mothers and/or children under 6 years b. Children attending primary schools (SD/MI) c. Children attending secondary schools (SMP/MTs) Minimum payment for each beneficiary Maximum payment for each beneficiary

Payment amount for beneficiary per year (RP)

200.000
800.000 400.000 800.000 600.000 2.200.000

Note: - Maximum payment for each beneficiary is Rp. 2,200,00, with 3 children. - Health related cash transfer is eligible for beneficiary with children under 6 years and/or pregnant/lactating mothers. - Amount of payment are not based on the number of children .

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600000

500000

400000

300000 <20 11 200000

201 2
201 3

100000

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PKH
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30,000 25,032

25,000

20,000 16,154 15,000 10,998 10,000 7,654 5,000 9,295 PROVINSI KABUPATEN KECAMATAN KELURAHAN

4,311
637 781 946 1,387 119 25 2011 2,001 33 169 2012

3,429 13 70 13 70 20 88 33 336 2013

7 48 337 2007

2008

2009

2010

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Number of Beneficiary Households

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RTSM 2007-2013
2,500,000
2,364,150

2,000,000

1,500,000

1,454,655

1,052,201 1,000,000 726,376 774,293

RTSM 2007-2013

620,848
500,000 387,947

2007 2008 2009 2010 2011 2012 2013

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IMPLEMENTING AGENCY (ies): Role of Line Ministries

PKH Beneficiaties (Demand Side) Health Facilities, Education, Shelter (Supply Side) Ministry of Health Ministry of Education Ministry of Religion Affairs Ministry of Manpower & Transmigration Ministry of Home Affairs Local Government Service providers of health facilities, education, shelter, verification of compliance, providing identification (ID/KTP)

Ministry of Social Affairs

Targeting, validation, payment, data verification, facilitation, compliance monitoring, penalties

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ALLOCATED BUDGET 2007-2013

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Rp2,000,000,000,000 Rp1,856,256,882,500 Rp1,800,000,000,000 Rp1,600,000,000,000 Rp1,540,207,370,000

ALOKASI ANGGARAN 2007-2013

Rp1,400,000,000,000
Rp1,200,000,000,000 Rp1,000,000,000,000 Rp800,000,000,000 Rp600,000,000,000 Rp400,000,000,000 Rp200,000,000,000 Rp2007 2008 2009 2010

Rp1,282,205,200,000 Rp929,414,000,000 Rp923,943,379,000 Rp767,594,335,000 ALOKASI ANGGARAN 2007-2013

Rp507,975,983,326

2011

2012

2013

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PKHS OPERATION CYCLE

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Selection of beneficiariesFrom targeting system managed and operated by TNP2Ksee below Registration and enrolment (data validation, socialization, signing acceptance letter) First quarterly payment Verification of compliance with conditions Second and subsequent payments (Updates and complaints on-going processes)

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PKH MECHANISM

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HOW ARE BENEFICIARIES FOUND/SELECTED

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TNP2K (Targeting Unit for Poverty Reduction) prepared list of about 25 million (or about 40% of population) HHs ranked by poverty level in 2011. BPS (statistical office) did surveys and prepared initial database (PPLS 2011). Ranking based on PMT (proxy means test scores) method. Database is updated every three years and is used by all anti-poverty programs including PKH

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PKH PAYMENT MECHANISM

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Prosedur Standar Operasi pencetakan DISTRIBUTION OF PKH FORM dan distri

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PT POS INDONESIA
AdMailPOS

Divisi Distribusi

Ministry of Social Affairs BAST

Rekap Jumlah Form Rekons (2)
Rekap Jumlah Form

Processing Data & Printing

Data

Kantor Pos Tujuan

Reko ns (1)

UPPKH Kab/Kota
Op Adm Rekap Jumlah Form
Pick
form Handling

TUJUAN FORM
Up

Facilitators

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GRADUATION/TRANSFORMATION STRATEGY: Starting 2014 for 2007 Cohort

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Recertification Results
Still Poor and eligible for PKH

PKH BENEFICIARIES

Still Poor but not eligible for PKH

T R A N S I T I O N

RECERTIFICATION
Not poor but Still eligible for PKH
G R A D U A T I O N

Not poor and Not Eligible for PKH

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GRADUATION/TRANSFORMATION STRATEGY
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Time limit for PKH HHs is 6 years Recertification (pass a PMT test) at 5th year If still poor and eligible, the beneficiaries can receive cash transfer for another 3 more years. First recertification to be done in 2013 - June If not poorbeneficiaries receive priority to enroll in other key social programshealth ins. Rice. Scholarships, counselingsee next slidewhen possible all PKH HHs in complementary programs

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PKH COMPLEMENTARY PROGRAMS

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PKH COHORT AND SCHEDULE OF RECERTIFICATION

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COHORT 2007

2012 RECERTIFI CATION

2013 6 YEARS ENROLLMENT RECERTIFICATION

2014

2015

2016

2017

2018

IMPLEMENTTION OF TRANSFORMATION ACTIVITIES 6 YEARS ENROLLMENT RECERTIFICA TION IMPLEMENTTION OF TRANSFORMATION ACTIVITIES 6 YEARS ENROLLMENT

2008

2009

IMPLEMENTTION OF TRANSFORMATION ACTIVITIES

2010

RECERTIFI CATION

6 YEARS ENROLLMENT

IMPLEMENTTION OF TRANSFORMATION ACTIVITIES

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IMPACTS/RESULTS: Several impact evaluations

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Final evaluation report on Social Security Programm : Program Keluarga Harapan 2009 (BAPPENAS) PKH final report on Spot Check PKH 200(Ministry of Social Affairs, PKH)

PKH Spot Check 2010 (Research Centre of Health, Universitas Indonesia)

PKH Final Impact Evaluation Report of Indonesias Household Conditional Cash Transfer Program (World Bank 2010) PKH Operational Assessment reports (Ayala 2010, Tarcisio 2010) ADB Pro-Poor Planning and Budgeting Project Working Paper 5 Two case studies on implementing Indonesian CCT program (BAPPENAS)

Qualitative Impact Study for PNPM Generasi and PKH on the Provision and the Utilization of Maternal and Child Health Services and Basic Education Services in the Provinces of West Java and East Nusa Tenggara (SMERU 2011) PKH PER Report Draft (World Bank 2011) Report on PKH Spot Check in 7 Districts 2011(TNP2K)
Collected by TNP2K, 2011

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PKH Health Impact

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Number of visit of pregnant/lactating mothers to the health facilities have increased 7-9 percentage points Number of babies/toddlers weighed have increased about 15-22 percentage points Delivery/labor process assisted by professional health staff increased 6 percentage of points; Delivery/labor process at healt facilities increased 5 percentage points; Impact of PKH are more convincing in areas with better health facilities: There is significant spillover effect of PKH on the utilization of health facilities at non PKH Sub Districts Impact in urban area are better than in rural area Long-term impact on health is not yet known. It can be seen after 1-3 years of program implementation Collected by TNP2K, 2011 UPPKH PUSAT KEMENTERIAN SOSIAL

Impact of PKH on Education

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Increase children aged between 6-15 to attend the schools There is no significant increase of enrollment at primary or secondary schools level, due to: Participation at primary schools have been high Schedule of payments not sychronized with the schedule of enrollment (April-May); Amount of payment are not enough for enrollment There is no significant spillover effect of PKH on the reduction of child labor. BUT PKH has Encouraged the local government to map the child labor, street children and children with special needs and to provide the suitable education facilities.

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Other Achievements/Results
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PKH was important income support during 2008/2009 food and financial crisis PKH supports advocacy for the poor: ID cards, birth certificates PKH insist/achieves local governments to allocate budgets for social development PKH has successfully been integrated into other programs (convergences)

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CHALLENGES/LESSONS
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Strengthening institutional development of PKH, the Social Ministry and partner agencies Main difficult issues include: CCT staffing at central, regional, local Recruitment and training of large number of required staff such as facilitators Developing Management Information System (MIS) Securing yearly budgets

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CHALLENGES/LESSONS Contd
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Transformation and convergence requires collaboration of many agencies and handling by other agencies such as local governments PKH is highly centralized but seen the need for strengthening the coordination between national, regional and district/municipal level Expansion to all districts in 2014, supply side issues may be present as many new areas are very poor (e.g. Papua and others)

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INNOVATIONS IN GOVERNANCE OF PKH

Financial Inclusion (BRI-2011) Unified Data Base (PPLS 2011) Complementarity Programme (President Instruction No. 3 2010 Justice for All Improving Targetting From Household to Familly (since 2012)

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CONCLUSIONS ON GOVERNANCE OF PKH

PKH was important income support during 2008/2009 food and financial crisis PKH supports advocacy for the poor: ID cards, birth certificates PKH insist/achieves local governments to allocate budgets for social development PKH has successfully been integrated into other programs (convergences)

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PKH IN OPERATION

PKH Facilitator and MIS

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Salamat Thank you Terima Kasih

Dr. Oetami Dewi Deputy Director for Indonesian CCT Programe UPPKH Pusat Gedung D, 4 floor Ministry of Social Affair Jl. Salemba Raya no. 28 Jakarta www.pkh.depsos.go.id utamid@yahoo.com