The objective of the report is to pointat the need for a new poverty strategy, and the areas ofaction it should cover, where each area should bespecifically discussed, addressing the lives ofIndonesia's poor, and the tradeoffs policymakers willneed to consider, based on the belief that this povertystrategy should emerge from a broad dialogue amongstakeholders. First, in broadening poverty, the report looksat the facts of the late 1990s crisis, which revealed theprecariousness of Indonesia's gains in reducingexpenditure-based poverty. Thus to extend those gains, thepoverty strategy needs to be defined, and then redevelopedby acknowledging the multidimensional reality of poverty,and, it is this notion which will lead to making thestrategic choices. Second, within the country'spolitical transition to a democratic, decentralized mode ofgovernance, a poverty strategy needs to be consistent withan empowered populace, and democratic policymakingmechanisms. In creating a policy environment for raising theincomes of the poor, the report identifies the resumption ofrapid sustainable growth, with rising real wages, employmentopportunities, and, limited inflation, including theeconomic empowerment of the poor, enhanced bypoverty-focused public expenditures. Inevitably, theprovision of core public services is an area which shouldaddress the people's will in local governance policies,focusing on education and health, while providingappropriate infrastructure, and developing safety nets.
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