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This policy note provides a summary of
extensive analysis carried out on urban poverty in Indonesia
today and a review of main urban poverty programs, with the
objective of providing the basis for an urban poverty
reduction strategy. A second policy note, 'Indonesia:
evaluation of the urban Community-Driven Development, or CDD
program, Program Nasional Pemberdayaan Masyarakat
(PNPM)' summarizes a more detailed process evaluation
that was carried out of this important program in parallel
to the urban poverty analysis and program review. The
PNPM-Urban evaluation covers issues related to internal
efficiency, distills lessons learned, and identifies options
for improving program effectiveness. The two pieces together
provide context for the review of existing programs and
strategic directions for addressing urban poverty, as well
as more specific operational recom-mendations for enhancing
impact of the PNPM-Urban Program. Section one includes this
introduction and the analytical approach of the study,
section two covers the analysis of poverty trends and
characteristics, section three includes the review urban
poverty programs and benefit incidence analysis, and section
four discusses policy implications for urban poverty reduction.