Eradicating Extreme Poverty through Multi-Sectoral and Multi-Stakeholders Collaboration in Barru, South Sulawesi

A group of civil servants holding a book of action plans for accelerating the Human Development Index (HDI) in West Kalimantan Province for the years 2023-2025

Participants of workshop to formulate government and non-governmental actors’ intervention plans for accelerating extreme poverty reduction in Barru (August 8, 2023).

Participants of workshop to formulate government and non-governmental actors’ intervention plans for accelerating extreme poverty reduction in Barru (August 8, 2023).

Barru, a district located around 102 km from Kota Makassar, South Sulawesi Province, faced an issue with 4.5 percent of the people living in poverty and 0.9 percent in extreme poverty. Meanwhile, the government has an ambitious goal to eradicate extreme poverty to 0% by 2024. Supporting this goal, USAID ERAT has been actively assisting the LG through various initiatives such as enhancing the accuracy of poverty data, refining budget allocation for impoverished communities, and fostering cross-sectoral and multi-stakeholder collaboration.

In enhancing target group data quality, USAID ERAT supported the local government (LG) to verify and validate database for Targeting to Accelerate Alleviation of Extreme Poverty (Pensasaran Percepatan Penghapusan Kemiskinan Ekstrem, P3KE) provided by the central government. The verified data was subsequently formalized through a Regent of Barru decree No. 250/BAPPELITBANGDA/V/2023 on the Establishment of Data Targeting for the Acceleration of Elimination of Extreme Poverty and Alleviation of Other Poverty in Barru Regency on May 4, 2023, establishing it as the official reference data for all stakeholders involved in designing activities to eliminate extreme poverty.

With the available data, USAID ERAT then supports the formulation of local action plans and budget allocation for extreme poverty eradication. One of the key initiatives is to adopt poverty budget tagging developed at the Ministry of Home Affairs (MOHA) to oversee the allocation and execution of the budget.  LG of Barru initially analyzed their poverty reduction budgets referring to its own local poverty reduction plan, which has different budget line items from the one used at the central level. The results of USAID-ERAT supported poverty budget tagging show a total of IDR 99.8 billion of the 2023 budgets allocated for poverty reduction through 15 local government offices. This is significantly smaller than the original estimate of the LG of IDR 177 billion implemented by 13 local government offices.

The result of USAID ERAT-supported budget tagging also revealed that most of the budget is allocated for indirect and supporting activities, 36% and 45% respectively. Only 19% of the budget was allocated directly to the target group. Furthermore, USAID ERAT also identified that P3KE database had not been utilized as the basis for programming of LG offices, resulting in inefficient and ineffective spending for extreme poverty activities.

Meeting between Barru’s Bappelitbangda and BAZNAS to discuss the assistance BAZNAS can give to help extreme poverty eradication in Barru, facilitated by USAID ERAT (August 9, 2023).

side the budget tagging, USAID ERAT facilitated collaborations between the LG and non-governmental actors to collaboratively accelerate extreme poverty alleviation in Barru, which has started showing results.  The National Zakat Collection Agency (Badan Amil Zakat Nasional, BAZNAS) to provide scholarships for 161 students from elementary to tertiary education levels coming from poor families; subsidize the payment of health insurance premiums of the poor and near-poor not covered by the government’s subsidies; and providing seed capitals to 104 poor families to expand their micro businesses.  The State Electricity Company (Perusahaan Listrik Negara, PLN) also expressed their willingness to use P3KE data to provide free electricity connections for 495 low-income households.

USAID ERAT will continue supporting the LG of Barru to ensure comprehensive utilization of P3KE data by all LG offices for local planning and budgeting and in determining target beneficiaries. The Activity has also introduced a terms of reference template that will allow the LG offices to explain how their activities will contribute to extreme poverty alleviation, supplementing the existing planning and budgeting formats. This endeavor signifies a pivotal step toward enhancing the effectiveness and efficiency of extreme poverty reduction program within the region, ultimately resulting in a more significant and sustainable impact on the affected communities.

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