This is an independent outcome evaluation of UNDP Indonesia's Community Initiatives Unit (CIU)'s programme on poverty reduction for the period 2001-2005. The evaluation was carried out in November 2006 as per the evaluation plan of UNDP Indonesia. At the national level, the indicators of poverty confirm that the incidence, depth and severity of poverty have declined during 2001-2005 period. However, it has been recently reported that poverty in Indonesia increased to 17.8 percent in 2006. According to the World Bank, the ban on rice imports is the main reason for the increase of poverty in Indonesia during 2005-2006. UNDP contributed to the decline of poverty in Indonesia in the periods 1998-2000 and 2001-2005, through support to: 1) community recovery programme, and 2) reforms on social policy. Over 200,000 families directly and indirectly benefited from the CRP during 1998-2005. Similarly, UNDP support on social research and the production of Indonesia's National Human Development Reports 2001 (NHDR 2001) and NHDR 2004 contributed to the reduction of poverty. UNDP made partnerships with the government, donors, UNV and CSOs and intellectuals of Indonesia for poverty reduction. The partnership strategy worked well.