Social Development Program

Strategic program

Strategic program

PMDM
Strategic Partnership & Strategic Contribution

Independent Village Partner Program (PMDM), as part of PTPM, is a pattern of support from PT Vale to affected areas. The company’s program is designed as community-based activities, especially for vulnerable and poor groups. The activities can take form in stimulus fund for villages/districts. For initial stage PMDM focuses on healthcare and economic sector.

PMDM refers to Law No. 25/2004 on National Development Planning System. In short it synergizes the government’s community empowerment program and other poverty alleviation programs.

Activities which PMDM can facilitate are open menu in nature. The local people are given a spacious room to determine their choices of activities that are related to healthcare and the economy. Implementation of PMDM is regulated under the Operational Technical Guidance as a reference, starting from the planning stage to implementation, utilization, control and maintenance of activities.

Activities that are supported by PMDM must meet the criteria as follow:

  1. In harmony with government policies;
  2. In harmony with regional development programs;
  3. Village development planning follows the people’s need.
  4. Synergy with existing programs is needed;
  5. Encourage harmonization of stakeholders that are involved in the program;
  6. Adopt public accountability principles;
  7. Directly contributes to improvement of healthcare and the economy of poor families in the areas affected by PT Vale operation;
  8. Suits the capacity of the targeted people;
  9. Local human resources are available;
  10. Activities aim to enhance the standard of health services, including training to develop  community health cadres;
  11. Activities intend to improve the capacity/skills of productive business groups;
  12. Construction or renovation of facilities that support rural economic activities, which will directly benefit the poor;
  13. Increase equity through lending and saving unit or micro financial institution;
  14. Activities have potentials to grow in a sustainable way.

In the first cycle of PMDM (2013), the program focused on local people and those who could run the activities strictly in compliance with the PTO. The program aims at local people and those who could run PMDM in accordance with the PTO. In the future PMDM can be emphasized on the quality of activities proposed by the local people and on improvement of the capacity of PMDM operators. This will push for acceleration of the people’s autonomy.

Aside from PMDM, PTPM has its support pattern which is called strategic partnership and strategic contribution. The three patterns go hand in hand. While PMDM starts from people’s initiatives or bottom up, activities related to strategic partnership and strategic contribution begin from work plan of the local government or the company (top down). They refer to Village Middle-term Development Plan (RPJMDes) and Village Development Plan (RKPDes) which is designed for five years. RKPDes is a document to determine priority program and activities as well as funding. There is also an Operational Cooperation (KSO) document to comply with the principles of good corporate governance, which requires a written document to maintain transparency and accountability when it comes to cooperation with outside parties.

Partnership-based KSO between PTPM team of PT Vale and relevant Regional Working Unit (SKPD) was signed for example in healthcare sector. PT Vale works with the East Luwu health agency. The agency presents its work plan and PT Vale examines which activities it can support. PTO of the strategic partnership and strategic contribution involving the two is now being drafted.

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