Localizing the 2030 SDGs by Accelerating Rural Development

Background:

To realize President Joko Widodo’s vision of developing Indonesia from the periphery through strengthening regions and villages, the Ministry of Villages runs various programs to create wider employment opportunities and reduce poverty levels. This program found its momentum when the Indonesian government implemented Law No. 6/2014 on Villages, which changed the landscape of the relationship between the state and villages from being previously highly dependent to becoming more flexible in exercising authority at the local level.

After identifying the goals of the 2030s SDGs the Ministry came up with two programs, Dana Desa (Village Fund), and Padat Karya Tunai Desa (Village Cash for Work) to become a major focus to accelerate rural development.

The Localizing the 2030 SDGs by Accelerating Rural Development Project is also a collaborative project with various development partners such as UNDP, IFAD, UNOSSC, UKCC, World Bank, and ASEAN, as well as through a bilateral cooperation network by fostering rural development that can contribute to achieving of the Rural Development Index (RDI), proposedly in line with the 2030 SDGs.

Project activities and results:

1. Dana Desa (Village Fund). As per July 25th 2019, the funding scheme succeeded in the development of 201.899 kilometres of village roads, 60.274 irrigation units, 8983 village markets, and up to 26.271 posyandu (pos pelayanan terpadu, which is a monthly clinic for children and pregnant women, providing vaccinations and nutritional supplements). The total amount of allocated funding over the four-year period, reaching Rp 257 trillion (over USD 17,6 billion) in 2019.

As the numbers suggest, the project has contributed massively to the decrease of the national poverty rate, in particular by supporting economic activities, and enhancing life quality of the village community, which then contributed to the goals, mainly #1: No Poverty, #3: Good Health and Wellbeing, and #17: Partnership for the Goals.

2. Padat Karya Tunai Desa (Village Cash for Work), The Village Cash for Work program is an activity to empower rural communities, especially the poor and marginalized, which is productive by prioritizing the use of local resources, labor and technology to provide additional wages / income, increase purchasing power, reduce poverty, and simultaneously support reduction in stunting rates. It is expected to absorb a large number of workers, by providing direct cash honoraria (wages) to the workforce involved.

By 2018, 10.368.538 people had been recruited as workers, for 353.223 activities, and receiving a combined IDR 11,29 trillion in wages. These numbers show how the project has greatly contributed to creating more job opportunities for the village community, and increasing the income of these communities, which has then contributed to the goals, mainly #8: Decent Work and Economy Growth.

Future plan

• Enhancing the effectiveness of the program in reducing poverty, by issuing policies that encourage/support innovative economic activities outside agricultural activities.

• Intensifying and ensuring the implementation of current partnerships with IFAD (woman empowerment); UNOSSC (innovation), UKCC (green economic growth), World Bank (rural community development), and ASEAN (rural development and poverty eradication), as well as establishing more partnerships with other development partners, especially the private sectors.

Village project for improving irrigation system supported by the village funding through cash for work program

Improving the rice production through one village one product approach in utilizing village fund

Public dialog to socialize the village funding policy