Governments in many countries are decentralising to give more control over decision making and budgets to local administrations. One expectation of this change is that local governments will more effectively and efficiently respond to the poorest citizens in their jurisdictions. Decentralisation is especially significant to forest communities, which have historically benefited little from government services and poverty reduction programmes because of their physical isolation and social marginalisation.

Poverty is a persistent problem throughout Indonesia. With decentralization, local governments had a new direct role in alleviating poverty and local wellbeing. At the same time they could do so in accordance with local realities and development needs. Yet, there is little improvement in the wellbeing of rural people. Local governments may lack the necessary capacity and experience to reduce poverty effectively. This report shows how a local specific monitoring system can be developed and applied.