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Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 245-270
Abstraksi Narasi : -

Revisiting Growth and Poverty Reduction In Indonesia: What Do Subnational Data Show?

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 329-351
Abstraksi Narasi : Indonesia has an impressive record of economic growth and poverty reduction over the past two decades. The growth-poverty nexus appears strong at the aggregate level. However, newly constructed panel data on the country`s 285 districts reveal huge differences in poverty change, subnational economic growth and local attributes across the country. The results of econometric analysis show that growth is not the only factor to affect the rate of poverty change; other factors also directly influence the welfare of the poor, as well as having an indirect effect through their impact on growth itself. Among the critical ones are infrastructure, human capital, agricultural price incentives and access to technology. While fortering economic growth is crucial, a more complete poverty reduction strategy should take these relevant factors into account. In the context of decentralisation, subnational analysis can be an instructive approach to examining local governance in relation to growth and poverty reduction.

An Economic Survey of Northern Sulawesi: Turning Weaknesses Into Strenghs Under Regional Autonomy

Nama Pengarang : Lucky W. Sondakh, Abuzar Asra, Arsenio M. Balisacan, Ernesto M. Pernia, David J. Ray, Edimon Ginting, Ross H. McLeod, Gordon de Brouwer
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 273-302
Abstraksi Narasi : The separation of North Sulawesi and Gorontalo into two provinces in 2001 complicated the issue of making regional autonomy work for northern Sulawesi, a region far removed from Indonesia`s centre of power. Although the region had com through the economic crisis relatively well, the over-reliance on coconuts and the lack of a focus for dynamic dvelopment remained a challenge. Tourism, mining and services were th most dynamic sectors but, for different reasons, non of these sectors can be relied on for steady long-term growth. With the selection of the corridor from Manado to Bitung as one of Indonesia`s 13 integratd economic development zones (Kapet), and given the new North Sulawesi province`s potential role as a `gateway` to Northeast Asia, the longer-term prospects for this province are brighter than those of Gorontalo. Nevertheless, capitalising on North Sulawesi`s potential remains a formidable challenge.

Village Government and Rural Development in Indonesia: The New Democratic Framework

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 193-214
Abstraksi Narasi : The political reforms that began in Indonesia in 1998 have created new opportunities for a revised relationship between state and community, replacing the New Order`s centralistic and uniform framework with local-level institutions that are strong and responsive. This paper presents the new legal framework for the democratisation of local-level politics and village institutions. Representative councils have been elected in all Indonesian villages, and the village head is no longer the sole authority in the community. Village governments are provided with far-reaching autonomy and do not need the approval of higherauthorities to take decisions and implement policies. However, decentralisation and democratisation are necessary but not sufficient preconditions for developing the countryside and alleviating poverty. An active government and civil society engagement must ensure that regulations are not distorted during implementation, and that ordinary people are included in public policy making and local governance.

Tax and Charge Creation By Regional Governments Under Fiscal Decentralisation: Estimates and Explanations

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 177-192
Abstraksi Narasi : Under fiscal decentralisation, regional governments have been given the authority to create new taxes and charges. Many observers have criticised the regions for being too agressive in establishing new revenue instruments, and the central government for allowing too many of them to stand. Regional governments authorised nearly 1,000 new taxes and charges in the run-up to and through fiscal year 2001, many of them focused on primary sector goods and factors. The analysis here suggests that only around 40% of all newly authorised subnational taxes and charges were submitted to the centre for review as required by law; the remainder were presumably implemented without central evaluation and therefore illegally. Regional governmnets argue that they create new taxes and charges out of fiscal need, but this paper finds no evidence to support the claim thta lack of fiscal capacity is a driving force in the creation of new revenue instruments.

Survey of Recent Development

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 133-156
Abstraksi Narasi : -

Recent Technical Papers on BPS Data

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 215-220
Abstraksi Narasi : This note discusses a series of papers produced by the USAId-funded STAT project at the Indonesian Ststistics Agency (BPS). The project`s goal was to help BPS design new activities based on improved statistical techniques, so as enhance the agency`s provision of accurate and to increase its openness and transparency through documentation of sources and methods, and soliciting of user feedback. The papers described here document the methodology of certain statistical series, and explore data-related questions. They are aimed mainly at users outside BPS, and cover series on the national accounts, industry, the labour force and agriculture.

Change and Continuity in Indonesia`s New Fiscal Decentralisation Arrangements

Nama Pengarang : George Fane, Yahya Jammal, Macintyre, Andrew, Resosudarmo, Budy P., Blane D. Lewis, Antlov, Hans
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 159-176
Abstraksi Narasi : The changes in grant allocation among regions have been less revolutionary than the 1999 decentralisation legislation legislation enisaged because the resource-rich regions were able to force the government to modify the proposed fiscal gap formula for allocation general purpose grants so as to put more weight on the ststus quo. Partly for this reason, and partly because no major tax was decentralised, there has not been much increase in autonomy for the regions that have few natural resources. In addition, it is argued here that the procedures for grant allocation in 2002 created incentives for regional fragmentation and did not take account of poverty in an appropriate way.

Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 5-28
Abstraksi Narasi : In the immediate aftermath of the 12 October Bali bombings, the government acted to limit the repercussions by moving to arrest those involved in the planning and implementation of the attacks. It also took steps to stimulate the economy by increasing the 2003 budget deficit by 0.5% of GDP to 1.8%. The start of 2003 saw the economic debate switch from the impact of the Bali bombings to the government`s decision to increase domestic electricity, fuel and telephone charges. The simultaneous price rises sparked public protests and opposition from both unions and business. The increases were initially defended, including by the president, but the government quickly backed down. This decision complicates the task of winding back the budget deficit over the next two years, and reduces budget flexibility in the run up to the 2004 election. Consumption continues to be the main driver of growth, although there are signs that it is waning. Third quarter GDP growth came in at 3.9 % year on year, and GDP growth for 2002 as a whole is likely to be 3.5-3.6 %. The November trade data were disconcerting, with a 22.4% decline in non-oil exports, although there was some recovery in December. Inflation in December was 10%, down from a year earlier, and just above the Bank Indonesia (BI) target range of 9-10% for the year. This and BI`s medium-term target of 6-7% seem to high, out of step with regional and world developments, and likely to undermine Indonesia`s competitive position. In 2003 many of the institutions and arrangements put in place following the 1997 financial crisis come to an end: the Indonesian Bank Restructuring Agency (IBRA) will close; Indonesia will graduate from the IMF program; and the government will benefit from its final year of Paris Club rescheduling of official debt. The government must increasingly take ownership of its economic policies. there are signs that this is occuring, with the formation of a group to examine policies for the post-IMF period. With political will and the right policy choices, budget and associated debt management can sustain macroeconomic stability in the post-IMF era, but both are likely to be susceptible to domestic political influence in the lead-up to the election. The overarching priority in alleviating Indonesia`s debt burden is to accelerate real GDP growth through effective emplementation of the structural reform program, leading to improved business confidence and investment. The reality is that Indonesia will probably be stuck in a low growth scenario for a number of years unless it can speed up its structural reform agenda.

Minimum Wage Policy and Its Impact on Employment in the Urban Formal Sector

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 29-50
Abstraksi Narasi : Since the late 1980s, minimum wages have become an important plank of the Indonesian government`s labour policy. their levels have increased faster in real terms than those of average wages and per capita gross domestic product and, as aresult, minimum wages have become binding for the majority of formal sector workers. This study finds that the imposition of minimum wages has anegative and statistically significant impact on employment in the urban formal sector. The disemployment impact is greatest for female, young and less educated workers, while the employment prospects of white-collar workers are enhanced by increases in minimum wages. Some workers who lose jobs in the formal sector and have to relocate to the informal sector earning and pooree working conditions.
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