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Workflow, Management, Financing, Results, Monitoring

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Workflow | Activity Cycle | Management | Financing Profile | Funds Distribution | Results | Monitoring & Oversight Additional Resources 


KDP aims to maximize community participation throughout the project cycle as described below:

  • Information dissemination and  socialization about KDP occur in several ways. Workshops are held at the provincial, district, Kecamatan and village levels to disseminate information and popularize the program.
  • Participatory planning process at the sub-village, village and sub-district levels. Villagers elect village facilitators (one man, one woman) who assist with the socialization and planning process. The facilitators hold group meetings, including separate women’s meetings, to discuss the needs of the village and their development priorities. Villagers make their own choices about the kinds of development projects they wish to fund. KDP maintains social and technical consultants at the kecamatan and district levels to assist with socialization, planning, and implementation.
  • Selection of projects at the village and sub-district levels. Communities meet at the village and sub-district levels to decide which proposals should be funded. Meetings are open to all community members to attend and propose projects. An inter-village forum composed of elected village representatives makes the final decisions on project funding. Project menus are open to all productive investments except for those on a short negative list.
  • Villagers implement their own projects. KDP community forums select members to be part of an implementation team to manage the projects. KDP technical facilitators help the village implementation team with infrastructure design, project budgeting, quality verification, and supervision. Workers are hired primarily from the beneficiary village.
  • Accountability and reporting on progress. During implementation, the implementation team must report on  progress twice at open village meetings prior to the project releasing the next trench of funds. At the final meeting, the implementation team hands over the project to the village and a village operations and maintenance committee.

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  Activity Cycle

KDP Activity Cycle

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The Ministry of Home Affairs, Department of Community Development, manages KDP, and teams of   facilitators and consultants from the village to the national level provide technical support and training. Government coordination teams representing various ministries also assist with KDP at the national, provincial, and district levels.

KDP management

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Financing Profile

detail fundingKDP is supported through a mix of loans from the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), grants, and counterpart government funds. KDP’s financial structure is very attractive to the Government of Indonesia. Because it is poverty targeted, the project receives large amounts of concessional financing through IDA, nearly 50 percent of  Indonesia’s IDA allocation during KDP2.

KDP Fund Flow

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KDP has also leveraged over USD 145 million in trust funds and grants from various donors.

KDP Financing

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Distribution of Funds

KDP provides funds directly from the national level to village collective accounts at the Kecamatan level. Villagers then use these funds as grants for productive infrastructure, loans to existing groups for working capital, or social investments in education and health. Each financial transfer downwards is matched by a document flow upwards to promote precise tracking.

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Results To Date
  1. Improved access to markets, town centers, education & health facilities, and clean water supply in 34,200 of the poorest villages (almost half of the total villages) in Indonesia. KDP has funded some 116,300 infrastructure, economic and social activities across the country.
    Below is an illustrative list of KDP investments:
    • 30,100 kms. of roads built or upgraded
    • 6,500 bridges built or reconstructed
    • 7,330 irrigation systems built
    • 7,180 clean water supply units and 2,900 sanitation units built
    • For education, construction and renovation of 2,680 schools; provision of school equipment, educational materials, and scholarships
    • For health, construction and renovation of 2,000 village health units and posts
  2. High rates of return - In an independent economic evaluation, weighted internal rates of return for KDP infrastructure ranged from 39 to 68 percent.  In most cases, these very large benefits resulted from either entirely new economic activities that were made possible by KDP infrastructure, or suppressed/latent production capacity that was finally able to be channeled to local markets.
  3. Significant cost savings - KDP village infrastructure built through KDP methods cost significantly less – on average 56 percent less – than equivalent work built through government and Ministry contracts.
  4. Expanded business opportunities and employment
    • 39 million workdays have been generated through short-term employment on labor-intensive infrastructure works.
    • Opening up of businesses and transport services due to new roads, bridges, and piers.
    • 751,500 loan beneficiaries and entrepreneurs participating in KDP credit & business activities.
  5. Significant impact on rural household expenditure - A recent study of KDP and non-KDP Kecamatan found sizeable expenditure impact. Furthermore, the longer a Kecamatan had received KDP, the greater the estimated impact on rural household expenditure.
  6. Pro-poor targeting – As indicated in economic studies, KDP has been successful in targeting and assisting the poorest kecamatan in the country.
  7. Improving local governance - Establishment of a model for participatory planning and financing.
    • Indonesians in 34,200 villages across the country participate in a democratic, participatory process of planning and decision-making regarding the allocation of public development funds.
    • About 60 percent of all participants in the KDP planning meetings are from the poorest groups in their village, and 70 percent of the workforce for KDP infrastructure construction comes from the poorest groups.
    • Participation of women in KDP meetings and activities ranges from 26 to 45 percent.
    • Community contributions average 17 percent nationwide with wide provincial variation.
    • High government commitment and buy-in with 40 percent of districts in KDP2 providing matching grants to KDP. All districts in KDP3 provide contributions from their own budgets.
    • Government accountability and the role of civil society are strengthened. NGOs and journalists in KDP provinces act as civil society watchdogs to monitor independently KDP activities. Since the program began, there have been over 1,260 media reports broadcast or published regarding KDP.
  8. Low rates of corruption - Independent audits of KDP performed by Moores Rowland found that less than 1 percent of village subprojects showed deviations.

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Monitoring and Oversight of Activities and Funds

KDP works in a high-risk environment and it is important to maintain strict controls and monitoring systems to ensure that funds are used for the intended purposes. KDP maintains the following oversight mechanisms:

  • Community Participatory Monitoring – The most effective means of monitoring is through beneficiary communities who elect a monitoring committee to oversee project implementation and finances. Committee members check on prices, quotations, supply of goods, benefits to the community, financial book-keeping and progress of infrastructure implementation. The implementation team also reports to the communities twice in “accountability meetings” regarding project progress and finances. KDP requires project information to be posted on village information boards.
  • Government Oversight – KDP funds are public funds, and government authorities have a responsibility to ensure that KDP is proceeding according to its principles and procedures and that the funds are being used appropriately. All government officials involved with KDP (local parliaments, provincial and district coordination teams, district heads, sub-district heads, project managers at Kecamatan level/PjOK) have a duty to monitor KDP.
  • Consultant Oversight – Monitoring project activities is also the shared responsibility of KDP consultants and facilitators. Consultants at the national, regional, district, and sub-district levels, and village facilitators all share responsibility for monitoring KDP activities. Consultants make regular visits to project sites to provide technical assistance and supervision.
  • Grievance and Complaints Resolution Mechanism – Communities can direct their questions or complaints to KDP facilitators, government staff, NGOs or send inquiries directly to a PO Box.  KDP maintains a Complaints Handling Unit at the national and regional levels to record and follow up on inquiries and complaints.
  • Independent Civil Society Monitoring – Indonesian civil society groups such as NGOs and journalists provide independent monitoring of KDP. KDP maintains a contract with a competitively selected NGO in each province to monitor regularly KDP activities and report monthly on progress. Journalists are also invited to monitor the program and publish or broadcast their findings.
  • Financial Reviews and Audits - Three parties conduct regular financial inspections and/or audits of KDP:
  1. BPKP (Badan Pengawas Keuangan dan Pembangunan), the official government audit agency. Each year BPKP audits KDP activities on a five percent sample. In 2004, BPKP conducted audits in 22 provinces, 62 districts, 190 sub-districts, and 593 villages.
  2. NMC Financial Supervision and Training Unit. KDP maintains an internal seven-person unit for financial supervision and training. The Unit conducts financial reviews and more importantly, provides  on-the job training for Kecamatan Financial Units (UPKs), Village Implementation Teams (TPK) and loan groups. In total, BPKP and NMC financial audits generally cover 30 percent of all KDP sub-districts.
  3. World Bank Supervision Missions and Audits. The World Bank, together with the NMC and Government undertake semi-annual missions. These supervisions are very helpful in identifying management issues and evaluating the progress of the program at the central level and in the field. The Bank also contracts an external independent firm to audit all Bank projects, including KDP.

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  Additional Resources

 Selected Publications/Reports

black arrowCommunity Development (Overview), March 2006
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KDP's Anti-Corruption Work - Brief, March 2006
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Village Corruption in Indonesia: Fighting Corruption in the World Bank's KDP Program (480kb pdf), Indonesia Social Development Paper, April 2005
black arrowKDP:  A Large-Scale Use of Community Development to Reduce Poverty, Working Paper, May 2004
black arrowKDP: 
Building a Monitoring and Evaluation System For a Large-Scale Community-Driven Development Program (450kb pdf),  May 2002

black arrowKDP:  Is it Replicable? Design Considerations in CDD, Social Development Paper, March 2002
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Evaluation of KDP I, II and III


 Project Documents

black arrowThird Kecamatan Development Project -   Anti-Corruption Action Plan (pdf)
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Community Recovery Through KDP
black arrowIndonesia:   Tsunami Emergency Recovery Support Package - Proposed Restructuring of Three Ongoing Projects in Response to the Late-2004 Natural Disaster
black arrowThird Kecamatan Development Project (3B)
black arrowThird Kecamatan Development Project
black arrowSecond Kecamatan Development Project
black arrowFirst Kecamatan Development Project | Implementation Completion Report
black arrowOther Documents and Reports 



black arrowKDP's Work in Conflict and Disaster Areas, August 2006
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 New Framework for Social Development: The Case of the Kecamatan Development Project, Development Outreach, WBI, September 2005
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KDP website on the Shanghai Poverty Conference Website, Scaling Up Poverty Reduction: A Global Learning Process and Conference, Shanghai, May 25-27, 2004
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Indonesia: Poverty Reduction and Economic Challenge(775kb pdf), Scaling Up Poverty Reduction: A Global Learning Process and Conference, Shanghai, May 25-27, 2004

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