Despite the fact that the poverty rate in Indonesia has fallen substantially, there are two trends that should receive particular attention, (i) the slow rate of the decline in poverty, and (ii) increasing inequality and the high proportion of the community who still experience social and economic vulnerability. Due to this, there needs to be a effort to broaden approaches to poverty reduction, including a widespread transformation in governance. On this basis, The SMERU Research Institute, with support from Support for Economic Analysis Development in Indonesia (SEADI) and the National Team for Accelerated Poverty Reduction (TNP2K), recognized the need for a Poverty and Vulnerability Reduction Mainstreaming Toolkit (PIDPPKK) which can be used by all stakeholders to increase the effectiveness of poverty reduction by mainstreaming poverty and vulnerability.

The creation of this toolkit is based on a literature review, stakeholder interviews at the national level, and field research in Kabupaten Kebumen, Central Java; Kabupaten Serdang Bedagai, North Sumatra; and Kabupaten Bombana, Southeast Sulawesi, conducted to collect information related to important issues and new innovations in poverty reduction efforts at a local level, including best practices and bad practices.

“Traditional” and targeted poverty reduction programs are still important, however there must be policy support in other areas, such as trade, land ownership, agriculture, public services, the environment, and others, so that poverty reduction becomes more effective. Through a poverty and vulnerability mainstreaming approach (PPKK), the programs and policies of all government ministries and agencies, and local government work units (SKPD), should explicitly explore their impact and benefits in relation to poor and vulnerable groups. This is the driving principle behind PPKK.