The Indonesian government launched the most popular CDD project in Indonesia called the Program Pengembangan Kecamatan (PPK), or Sub-District-Level Development Project. In 1999, the government further addressed urban poverty by creating another CDD program for urban areas called the Program Penanggulangan Kemiskinan di Perkotaan (P2KP) (Urban Poverty Program), which was the first and largest national-scale urban poverty alleviation program at that time. In 2007, the P2KP was subsumed by the Program Nasional Pemberdayaan Masyarakat (PNPM-Mandiri) (National Program for Community Empowerment), which covers nearly all municipalities in Indonesia. The CDD approach was to increase the overall quality of the development process, encourage good governance, and empower the beneficiary community.
A study that was conducted titled “Sharing Knowledge on Community-Driven Development in Indonesia: An Assessment of the Neighborhood Upgrading and Shelter Sector Project” focused on identifying lesson from implementation of the Neighborhood Upgrading Shelter Sector Project (NUSSP) that would allow the success of this community-driven urban development initiative in Indonesia to be replicated elsewhere. The study found that despite problems in targeting beneficiaries, the NUSSP subprojects were well implemented.