Re-designing Poverty Eradication Programs in Indonesia

Abstract

Poverty is a global phenomenon that normally reflects a minimum necessary standard of living. In fact, poverty in every country is affected by multiple factors (social, cultural, economic, and political). Sen (1985) and Nussbaum (2000) noted that poverty takes many forms, including human functioning and abilities, to develop basic ‘capabilities’ in education, health, and social life. Indonesia is among the countries that has programs to eradicate poverty, creating not only successful stories, but also some debates of the government’s efforts to maintain stability of the country. On the other hand, the private sector plays an important role in the economy of a country and has become a strategic partner of the government in the national programs for alleviating poverty. Of course, people’s participation also determines the success of poverty eradication programs. Reflecting all the points of poverty and the imperative of partnership between strategic stakeholders (state, the private sector, and community), this paper aims to explore the phenomena of poverty, national programs of poverty alleviation in Indonesia, and the importance of developing partnerships among the government, private sector, and community development organizations. The discussions cover two main points: 1) the Indonesian Conditional Cash Transfer (CCT) program, or what is known as the Hopeful Family Program (Program Keluarga Harapan (PKH), and the Non-Cash Food Aid System Program (BPNT), and 2) re-designing the poverty alleviation programs by connecting with other similar programs through coordination and partnerships with strategic stakeholders.