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Third Kecamatan Development Project 
The Third Kecamatan Development Project (KDP-3) for Indonesia aims to reduce poverty and improving local-level governance in rural Indonesia. It is part of a long-term village level governance program that began with the first Kecamatan Project in 1998. Specific development objectives for KDP-3 include: (i) institutionalizing participatory processes in local government; (ii) the cost effective provision o f basic social and economic infrastructure; and (iii) strengthening the capacity of the micro-finance institutions developed under KDP- 1 and KDP-2 to manage and monitor funds sustainably. There are 6 project components. Component 1 consists o f block grants that are transferred directly from the Special Account to the subdistricts that are participating in KDP. Block grants take two forms. One block grant supports investment proposals made by villages and selected by consensus in an inter-village decision meeting. The second consists o f block grants to support the participatory planning process. Each i s described below. Component 2 consists o f activities to strengthen the local government councils formed under Laws 22 and 25, with a particular focus on the village representative forum (BPD), inter-village forums (FAD), and the district parliaments. Most o f the component finances social and technical facilitators. Facilitators are recruited from the private sector. They receive a project-managed training program as well as periodic refresher courses. Other activities include: technical assistance for BPD capacity development; training in administration and monitoring skills to reinforce village administration, and village-level civic information and education programs about decentralization. Component 3 gives support to micro-finance institutions. Project support will be limited to training, technical assistance, Additional activities funded through this component include training courses in legislative drafting, and support to PMD for carrying out overall project evaluations through the provision o f technical assistance. Major activities to be funded through Component 5 are a program o f poverty impact assessments using quantitative and qualitative methods, continued support to the justice for the poor program started under KDP-2, pilot programs for community based monitoring, and studies on village and subdistrict revenue generation, trade, and infrastructure. Component 6 funds operational costs.** 
  Last Updated  November 28 2014
Basic Information
Project StatusClosed 
Region East Asia And Pacific 
Major Sector (Sector) (%) Public Administration, Law, and Justice (Sub-national government administration) (25%) 
  Water, sanitation and flood protection (Water supply) (20%) 
  Agriculture, fishing, and forestry (Irrigation and drainage) (20%) 
  Transportation (Roads and highways) (20%) 
  Education (Primary education) (15%) 
Old Major SectorN/A  
Old SectorN/A  
Env CategoryB  
Project IDP079156 
Bank Team Lead (Last Name, First)Tomlinson, Kevin A  
Approval Date26-JUN-2003  
Closing Date31-DEC-2009  

Main Loan/Credit #77500  
IBRD Commitment *204.3 
IDA Commitment *45.5 
IBRD + IDA Commitment *249.8 
Grant Amount *
Total Project Cost *376.8 
Product LineIBRD/IDA 
Lending InstrumentSpecific Investment Loan 

Development Outcomes And Goals
Targeted Thematic Outcomes...Supporting this Broader Dev't Goal
Social safety netsEmpowerment, security & social inclusion (CAP)
Participation and civic engagementEmpowerment, security & social inclusion (CAP)
Rural policies and institutionsN/A (CAP)
Rural services and infrastructureN/A (CAP)
DecentralizationPublic sector governance (CAP)
Available Project Documents***
For a short project overview, please consult the Project Information Document if available.
Board Report (BR), Vol.1 -31-MAR-2005 
Loan Agreement (LA), Vol. -02-JUN-2004 
Credit Agreement (CA), Vol. -01-JUN-2004 
Credit Agreement (), Vol. -01-JUN-2004 
Board Report (BR), Vol.1 -11-MAY-2004 
Project Appraisal Document (PAD), Vol.1 -02-JUN-2003 
Project Information Document (PID), Vol.1 -30-MAY-2003 
Project Information Document (PID), Vol.1 -27-MAY-2003 
Integrated Safeguards Data Sheet (ISDS), Vol.1 -13-MAY-2003 
Resettlement Plan (RPL), Vol.1 -30-APR-2003 
Indigenous Peoples Plan (IP), Vol.1 -30-APR-2003 
Environmental Assessment (EA), Vol.1 -31-MAR-2003 
Contract Award Information
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*Commitment at Board in USD$ millions. Does not reflect any cancellations. Pipeline and dropped projects display the forecast amount. Total project cost includes non-Bank funding.

** The project summary is drawn from the PAD, SAR, or PGD abstract and may not accurately reflect the project's current nature.

*** Project documents are posted to this website as soon as they reach certain milestones (more info.). For example, Project Appraisal Documents are processed and made available through this website a few days after Board approval. If you find that a report which should be here is unavailable, contact Infoshop .
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