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Towards a Healthy Indonesia?
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| Pengarang | : | Djiwandono Soedjati .J |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 55 (No. 2) |
| Halaman | : | 137-159 |
| Abstrak | : | During his first presidential term, Joko Widodo increased expenditure on, and the coverage of, several social protection policies, including the conditional cash transfer program. These policies began in the aftermath of the 1997–98 Asian financial crisis and have proliferated in recent years. This Survey will examine these policies, paying particular attention to implementation problems, including effective targeting through the construction of a unified database. It will also examine both food policy and broader health policy issues. It is widely agreed that health problems, such as those relating to early childhood development, must be addressed in Indonesia in a wider context, including through the provision of clean water and sanitation facilities, food security, and social assistance. The Survey will also examine recent discussions of trends in inequality and poverty, several of which claim that inequality has been increasing. Using recent figures published by Statistics Indonesia, it is argued that expenditure inequality has in fact been trending downward in recent years. |
Monetarism Or Keynesian Discourse in Indonesia
| Pengarang | : | Yien, Lim Chia,Azzam, Muhammad |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 55 (No. 3) |
| Halaman | : | 371-389 |
| Abstrak | : | This paper examines the relativs effectiveness of fiscal policy and monetary policy in Indonesia during 1970-2015, using the autoregressive distributed lag (ARDL) bounds testing approach to cointegration and Toda-Yamamoto causality. The ARDL results suggest that there is a long-run equilibrium relationship between monetary policy and economic growth in Indonesia. In the short run, money supply is found to positively affect growth while interest rates negatively affects growth. We conclude that monetary policy is more effective than fiscal policy in both the long run and the short run. The causality test reveas bidirectional causality between interest rates and growth. Overall, we find that monetary policy has a more profound impact on growth than fiscal policy. Evidence from the causality test in this study supports the Wagner hypothesis and the fiscal synchronisationnhypothesis, and shows that there is coordination between the government and the central bank in Indonesia. |
Value Chain Approaches in a Stagnant Industry: The Case of Furniture Production in Jepara, Indonesia
| Pengarang | : | - |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 55 (No. 3) |
| Halaman | : | 345-369 |
| Abstrak | : | This article assesses impacts of the Jepara Furniture Value Chain (FVC) project, which was intended to address challenges faced by small-scale furniture producers in Jepara, Indonesia. The assessment focuses on the effects of membership in the Jepara Small-Scale Furniture Producers Association (APKJ), a body started as part of the FVC project. Propensity score matching was used to compare differences in outcome variables between association members and matched non-members. A limited, positive impact of APKJ membership was found. Members improved their marketing, allowing them to retain more value than non-members. APKJ members were also more likely to have obtained certificates of timber legality. However, APKJ membership did not significantly affect firm profit and there was little evidence of an industry transformation. The paper also critiques the indiscriminate use of a value chain approach. |
Designing Anti-Poverty Programs In Emerging Economies In The 21st Century: Lessons From Indonesia For The World
| Pengarang | : | - |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 55 (No. 3) |
| Halaman | : | 323-343 |
| Abstrak | : | Government from developing countries around the world have dramatically expanded social protection programs for the poor in recent decades. In doing so, they face a host of challenges in the targetting, design and implementation of these programs. In this paper, I describe the results from more than a decade of collaboration with the Indonesian government to understand how best to tackle these challenges, drawing primarily on evidence fro randomised controlled trials. I highlight the results that show the advantages of both community-based targeting and self-targeting, the importance of tangible information about beneficiaries' rights in minimising leakage, and the remarkable impacts of conditional cash transfers in the medium term. I also describe several recent studies that use randomisation at scale to generate policy-relevant evidence |
Indonesia's Democratic Paradox: Competitive Elections Amidst Rising Illiberalism
| Pengarang | : | Aspinall, Edward,Mietzner, Marcus |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 55 (No. 3) |
| Halaman | : | 299-321 |
| Abstrak | : | Indonesia's 2019 elections confirmed both the country's status as acompetitive electoral democracy and the trend of decreasing democratic quality. In this article, we investigate this seemingly paradoxical pattern by highlighting four political arenas directly associated with the elections. First, the incumbent government's failure to secure a larger margin of victory for president Jokowi highlights the continued the competitiveness of the elctoral system, despite attempts to use state agencies for the president's re-election campaign. Second, although efforts to mobilise state resource for Jokowi largely unsuccessful, they added to an already significant illiberal shift. Third, the elections further accelerated the weakening pf political parties, with the personalisation of legislative polls achieving new heights. Finally, the election campaign and results led to alevel of religious polarisation in voting behaviour that was last seen in the 1950s. In analysing these theme, we argue that while the co-existence of Indonesia's competitive elections with illiberal trends appears contradictory, the two of them in fact interrelated. |
No One Left Behind In Indonesia?
| Pengarang | : | - |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 55 (No. 3) |
| Halaman | : | 273-297 |
| Abstrak | : | Indonesia is maintaining economic growth at 5% per annum, with the country holding the mantle of the world's most stable economic growth since 2002. However, trade flows contracted in the first half of 2019, and ongoing international trade fricions have created a challenging external enviroment. Inflation remains within the target range, and Bank Indonesia has, like other central banks, moved to cut interest rates. Urbann air pollution is an icreasingly prominent issue, with jakarta's air quality index frequently reaching unhealthy levels in mid-2019. President Joko Widodo has announced an intention for the government to build a new national capital city in East Kalimantan, a plan that would involve a substantial costs if it were to go ahead. The president has used the phrase 'No One Left Behind' in prioritising inclusivity in the development process in line with the United Nations' Sustainable Development Goals (SDGs). We review Indonesia's considerable progress in broadening residential acces to modern energy, developing the case for a new 'beyond electrification' agenda and renewed efforts in improving access to clean cooking. We also focus on the status of thred groups with members who face marginalisation from full participation in society: the disabled, the elderly and the unemployed. Steps are being taken to establish and broaden targeted assistance for members of each of these groups. Nevertheless, there is a long way to go in reducing the extent to which marginalised members of society are left behind. |
Batam: life After FTZ
| Pengarang | : | Negara, Siwage Dharma,Hutchinson, Francis |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 56 (No. 1) |
| Halaman | : | 87-125 |
| Abstrak | : | Once an island of high-tech production and turbocharged growth, Batam has seen its economic fortunes decline of late. Traditional pillars of the manufacturing sector such as electrical goods, electronics and shipbuilding have contracted. Investment levels have fallen, the island’s growth rate is below the national average and unemployment has increased sharply. In response, policymakers are promoting the development of new sectors in order to diversify the island’s economic base, and are debating changing Batam’s status from a free trade zone (FTZ) to a new, more expansive regulatory regime in order to attract more investment. In two ways, this article contributes to the debate on how to revitalise the island’s economy. First, using data from the Manufacturing Survey of Large and Medium-sized Firms, it analyses the growth and performance of Batam’s three largest manufacturing sectors—electronics, electrical goods and shipbuilding—over 2004–15. These results are then compared with those from firms in the same sectors in other major industrial locations in Indonesia to establish which activities in Batam remain competitive. Second, the article carries out an econometric exercise to determine whether the island’s FTZ status is related to improved levels of output, exports, employment and efficiency. The results of these exercises are used to evaluate the policy choices available to Batam. |
Urbanisation And The Demand For Food
| Pengarang | : | - |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 56 (No. 1) |
| Halaman | : | 43-86 |
| Abstrak | : | Is the demand for food influenced by urbanisation, and if so, in what way? This article reviews the relevant literature on this question and conducts an empirical investigation for Indonesia, asking Whether the relationship between food demand and the conventional economic variables explaining demand is altered by structural changes in degree of urbanisation. Urbanisation is associated with changes in level of both household expenditures and preferences and it is anlytically necessary to separate these two effects. Some of the effects commonly attributed to urbanisation occur among rural households whose expenditure increase but who do not move to urban areas. The empirical results for Indonesia show that urbanisation marginally reduce the expenditure share of food in aggregate, along with the responsiveness of this expenditure to changes in total expenditure. More importantly, it shifts the commodity composition of food consumption, but inways that are more nuanced than eralier literature reveals. |
A Price For Democracy? Religious Legislation And Religios Discrimination In Post-Soeharto Indonesia
| Pengarang | : | - |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 56 (No. 1) |
| Halaman | : | 23-42 |
| Abstrak | : | Various studies have expressed concerns about the decline of religios freedom in Indonesia. These studies suffer from three limitations. Firs, they inadequatelly differentiate between various aspectt of state-religion relations. Second, they are largely inward looking, overlooking how Indonesia compares with other countries in the world, especially other Muslim countries. Third, they do not explicitly test whether this decline in religios freedom was triggered by the downfall of Soeharto and the more open political and social space that ensued. Applyimg a synthetic control method to a global data set, the present study shows that Indonesia's level of stat discrimination againts religious minorities has not changed much since 1998. The country's levels of social discrimination and religious legislation, on the other hand, have increased significantly. This suggest that efforts to improve religious freedom in Indonesia should focus on tackling the proliferation of religious by laws and discrimination by social groups. |
Laying The Foundation For Future Growth Acceleration
| Pengarang | : | - |
| Nama Majalah/Jurnal | : | Bies: Bulletin of Indonesian Economic Studies |
| Volume / Edisi | : | 56 (No. 1) |
| Halaman | : | 1-21 |
| Abstrak | : | President Joko Widodo was inaugurated for his second term with a vision to make Indonesia a $7 trillion economy by 2045, Seven times its current value. This Survey examines recent development in Indonesia, with a focus on the challenges of laying the foundation for Jokowi's vision. It discusses issues surrounding the new cabinet composition in relation to economic targets and ask whether the cabinet can push through reforms needed to achieve the required rate of economic growth. While the annual growth rate has steadied at 5% we argue that this rate will be insufficient for realising the president's 2045 vision. A higher growth rate is needed in the next five years but will be difficult to achieve given the external and domestic challenges. The government should invest in creating a healthy and competitive investment climate. Policies to promote such a climate should be implemented with the support of capable institutions to expedite such process. |