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National Identity And Public Support For Economic Globalisation in Indonesia

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 1)
Halaman : 61-84
Abstrak : Nationalism and foreign economic policy have long been intertwined in Indonesia. This article aims to advance our understanding of Indonesian 'economic nationalism' by focusing on how national identity shapes the policy preference of ordinary citizens. Following comparative research on nationalism, this study distinguishes between ethnic and civic conceptions of national identity, and the hypothesises that they affect support for international trade and foreign investment in different ways. An original surveys finds that both conceptions are prevalent among Indonesian public, are politically mobilised and indeed affect towards economic globalisation. While ethnic nationalist are less supportive of international trade and foreign investment, civic nationalist are more likely to consider policy on either area as crucial for Indonesia's economic development. These results suggest that the relationship between nationalism and economic policy in Indonesia is more complex than research often assumes.  

Improving Competitiveness Through Vocational And Higher Education: Indonesia's Vision For Human Capital Development in 2019-2024

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 1)
Halaman : 29-59
Abstrak : This article explores Indonesia's readiness to uprgrade its human capital in response to changes in population and economic structure in order to harness the technological advances of the Fourth Industrial Revolution. The symptoms of premature deindustrialisation can be clearly observed on Indonesia's, suggesting that it needs to improve its productivity to adapt to digital disruption and structural economic change. Supply-side advancement will require infrastructure and human resource development. On the production side, Indonesia will need to revitalise its manufacturing, service and resource-based sectors, treating them as value chains to be integrated into glpbal networks. Indonesia's education policy framework to upgrade human resource and improvethe country's competitiveness focuses on five areas: acess to education; quality of education; synergies between government, industry and higher education;  industry linkages; and incentives. Meanwhile, the disruption caused by Covid-19 pandemic is forcing the Indonesian education system to instantly revolutionise its teaching method to adapt to pandemic and post-pandemic conditions.  

Managing Recovery And Seizing Reform Opportunities

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 1)
Halaman : 1-28
Abstrak : The worst of Covid-19 induced economic crisis appears to be behind Indonesia, with the economic contraction lessening in the second hal of 2020. While the economic downtur in Indonesia has been modest compared with downturns in peer countries, Indonesia's handling of the pandemic has been lacking. Almost a year into the pandemic, the country was still struggling with the first wave of infections as the number of new cases reported each day continued to rise. Facing criticism over the government's handling of the pandemic, Presiden Joko Widodo reshuffled his cabinet at the end of 2020. This survey examines Indonesia's plans to manage a longer-than-expectedrecovery from the effects of the pandemic. We see that much of the labour market is adjusting to widespread loss of employment by shifting into the agricultural sector. We also see an increase in informal employment, leading to lower unemployment rate than expected. We argue that the pandemic has exacerbated Indonesia's long standing structural problems. In addition to responding to the immediate crisis issues, the government must start addressing medium-term challenges and seizing reform opportunities. We discuss the existing recovery policies, including the vaccination strategy and the omnibus law on job creation. We argue that the omnibus law alone is necessary but will not be enough ti improve the investment climat and create jobs for economy recovery and long-term structural transformation.  

Effects of Peer Pressure in Agro-Cluster of West Java

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 2)
Halaman : 233-256
Abstrak : Agglomerations pf agricultural activity yield a numberof institutional and infrastructural benefits for farmers. However, these regional concentrations also increase competition among farmers. We quantify to what extent competitive pressure affects farmers’ behaviour in agro-clusters, by analysing a survey of 1,250 farmers in West Java. We use a conceptual model based on the theory of planned behaviour and a behavioural interaction model. We also propose and econometrically test several hypotheses. We find that specific competitive environments for certain aspects of agricultural production matter most. In high-density agglomerations, less peer pressure appears to foster more cooperative behaviour. Food insecurity increases self-interest, and more intense cooperation is associated with lower income and appears to be regionally heterogeneous. Policies intended to facilitate cooperation could therefore be tailored to specific aspects of agricultural production and specific regions of interest.   However, these regional concentrations also increase competition among farmers. We quantify to what extent competitive pressure affects farmers’ behaviour in agro-clusters, by analysing a survey of 1,250 farmers in West Java. We use a conceptual model based on the theory of planned behaviour and a behavioural interaction model. We also propose and econometrically test several hypotheses. We find that specific competitive environments for certain aspects of agricultural production matter most. In high-density agglomerations, less peer pressure appears to foster more cooperative behaviour. Food insecurity increases self-interest, and more intense cooperation is associated with lower income and appears to be regionally heterogeneous. Policies intended to facilitate cooperation could therefore be tailored to specific aspects of agricultural production and specific regions of interest.

Does Urban Form Affect Motorcycle use? Evidence From Yogyakarta, Indonesia

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 2)
Halaman : 203-232
Abstrak : Motorcycles dominate urban road traffic across Asia. We analyse how urban form influences preference for a motorcycles use, using a multinominal logistic regression model and data from recent field study in metropolitan area of Yogyakarta. We find that urban form explains about 20% of the observed variance in transport mode choice and that population density has a statistically significant positive effect on the likelihood of using a moptorcycle for commuting. In addition, we find that the likelihood of choosing a motorcycle over other transport modes is highest for individuals living at intermediate distance from the city centre and that, in comparison with other transport modes, motorcycles use is most sensitive to travel distance. Our results suggest that a compact urban form, including a high populatian density and short commuting distances, may help in reducing the growth of motorcycle use in urban areas.

The Importance of Financial Liberalisation For Economic Growth: The Case of Indonesia

Pengarang : Gupta, Krisna
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 2)
Halaman : 175-201
Abstrak : Indonesia has been struggling to return to the levels of economic growth it achieved before the asian financial crisis. The government has been working on more liberal investment policies to attract external finance, both through portofolio investment and direct investment, while also trying to control the risk premia that may be associated  with financial liberalisation. This article examines the mechanism of the policies to, among other things, improve access to finance and encourage productivity growth through more effective matching of capital with labour, as well as the use of global best practices. The potential gains for Indonesian economy are shown using an extension of Global Trade Analysis Project (GTAP) model that covers possibke changes in the cost of capital. The results indicate that the Indonesian economy could benefit substantially if the government allows a short-term trade deficit. 

Impact of The Covid-19 Shock on Banking And Corporate Sector Vulnerabilities in Indonesia

Pengarang : Siregar, Reza Y.,Gunawan, Anton H.,Saputro, Adhi N.
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 2)
Halaman : 147-173
Abstrak : Indonesia’s economic contraction eased and its Covid-19 handling improved in the first quarter of 2021, with at least 13% of the targeted population receiving their first vaccination by the third week of June. The economic improvement was driven by external sectors, but the pace of the recovery differed considerably across sectors. This Survey looks at the balance sheets of corporations and the banking sector in the midst of the pandemic. We find that the worsening of corporate balance sheets may require government intervention to prevent liquidity problems from turning into solvency problems. While the banks’ capital position remains adequate, the deterioration of loan quality, reflecting real sector conditions, is worse than it appears. Recent stress testing of the banking sector confirms the potential vulnerabilities in the sector. We end the article by highlighting policies the government could consider to position Indonesia for a post-pandemic future, particularly over the next two years.

Digitalisation And The Performance of Micro And Small Enterprises in Yogyakarta, Indonesia

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 3)
Halaman : 343-369
Abstrak : This study examines the effects of internet use, as part of digitalisation, on the performance of micro and small enterprises (MSEs) in Yogyakarta province. Using primary data on MSEs in Yogyakarta, the paper explois conceivably exogenous variations in the cellular signal strength that MSEs receive to connect to the internet, once number of local cellular transmitters, location topography, local buildings and infrastructure development and sectoral characteristic are controlled. The findings show the internet use has enabled MSes to engage in the digital economy and has improved labour productivity and exports.the associated monetary benefit due to internet use is substantial for local people.

Strategy For Transforming Indonesian Agriculture

Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 3)
Halaman : 321-341
Abstrak : Today agriculture is expected to help countries such as Indonesia to achieve multiple development goals. These goals include not only food security but also higher employment, environmental sustainability, and reduced poverty and malnutrition. Drawing on the literature on agricultural development in Asia, this article proposes four agricultural strategies that could help Indonesia to achieve these goals. First, to efficiently ensure food security, Indonesia should use labour-saving mechanisation and increase the average size of rice farms, in order to reduce wage-related production costs. Second, to ensure environmental sustainability, Indonesia should intensify oil palm production that helps the country meet global demand but also minimise forest loss. Third, to improve health and nutrition, Indonesian agriculture should produce more high-value products such as livestock products and fresh fruit and vegetables. Fourth, to generate more employment opportunities and to reduce poverty, Indonesia should promote rural industrialisation. In proposing these strategies, this article focuses on the agro-industrialisation of the private sector, on public-sector extension for smallholders, and on land rights security for stimulating the production of oil palm. The article finds that major policy change will be needed to achieve efficient, equitable and sustainable growth of agriculture in Indonesia.

The Pandemic As Political Opportunity: Jokowi's Indonesia in The Time of Covid-19

Pengarang : Setijadi, Charlotte
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Edisi : 57 (No. 3)
Halaman : 297-320
Abstrak : In mid-2021, the delta strain of the Covid-19 virus caused a second wave of transmissions and deaths in Indonesia at a scale much greater than what was seen in 2020. In this paper, I ecamine what the indonesian government's handling of the covid crisis in 2021 reveals about the priorities of President Joko Widodo (Jokowi), as well as his political agenda and attitude toward's the country's democracy, as he strive to cement his legac. I argue that, while devastating, the covid-19 pandemichas given Jokowi the opportunity to push through long-planned economic and political reforms. Futhermore, I contend that, under the guise of promoting social and political stability in the time of Covid, Jokowi has allowed for further democratic regression in indonesia through laws that restrict freedom of speech and through the further empowerment of the military and intelligence agencies in civilian life. This paper ends with an examination of jokowii's persistently high popularity rating and the discourse surrounding the rumoured push for a constitutionalreform that would allow for a third-term Jokowi presidency.
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