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The Changing Role Of Non-Farm Activities in Agricultural Households in Indonesia: Some Insights From the Agricultural Censuses

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 179-200
Abstraksi Narasi : The literature on off-farm sources of income in rural areas of developing countries continues to grow. This paper uses data from the household income surveys carried out as part of the 1983 and 1993 agricultural censuses to explore aspects of the changing role of off-farm income sources for agricultural households in different parts of Indonesia. The paper examines variations in the ratio of off-farm to total agricultural household income by holding size, by total household income class and by province. It also examines the linkages between on-farm and off-farm income growth. Comparisons are made with findings from other parts of Asia and elsewhere in the developing world.

Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 141-162
Abstraksi Narasi : Macroeconomic conditions have been improving slowly but steadily since the beginning of the year. The exchange rate had strengthened to below Rp 8,700/$ by mid June. Stock prices have also rebounded. Inflation has been declining since February after increasing steadily for almost two years. Real interest rates are now below pre-crisis levels. These developments have been supported by a combination of positive moves on the policy front and an improvement in relations with the international community. After several months of indifferent performance the Megawati government has made some progress in several key areas of the reform progress in several key areas of the reform program, as evidenced by the long delayed divestment of Bank Central Asia, a flicker of life in the stalled privatisation program, some significant taxation reform, and the abolition of costly subsidies. In April 2002 the International Monetary Fund (IMF) approved the disbursement of a further $347 million loan, and the Paris Club of creditor nations agreed to reschedule $5.4 billion of Indonesia`s debt service payments. Output grea by 2.5% in the year to Q1 2002. While this was lower than forecast, there is consensus among analysts that growth of 3.5-4% in calendar 2002 is within reach. Weak first quarter growth can be attributed partly to factors outside the government`s control :severe floods in February and continuation of the global economic slump that began in 2001. Nevertheless there is no room for complacency. The recovery has been fuelled mainly by consumer demand. Improvements in investor confidence have been reflected so far only on portfolio investment flows, while the net foreign direct investment outflow has continued unabated. Investment spending is still contracting, and the banking system remains fragile. There is little room for manoeuvre on the fiscal front because of the huge domestic debt service burden resulting from the government guarantee of bank deposits, and the planned budget deficit for 2002 may be exceeded unless more rapid progress with privatisation and divestment of bank sector assets can be achieved. Corruption in the customs service is creating a drag on recovery--especially for exporters and other producers dependent on imported inputs-- while there seems to be an increasing tendency for the courts to be used as instruments of extortion, especially in relation to foreign companies. Much remains to be done in setting up a viable set of arrangements in relation to decentralisation, especially in delineating the boundaries of authority for different levels of government.

Regional Income Inequality in Indonesia and the Initial Impact of the Economic Crisis

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 201-222
Abstraksi Narasi : This paper estimates regional income inequality from 1993 to 1998, using a Theil index based upon district-level GDP and population data. Between 1993 and 1997, when Indonesia`s annual average growth rate exceeded 7% regional income inequality rose significantly. A two-stage nested inquality decomposition analysis indicates this was due mainly to an increase in within-province inequality, sepecially in Riau, Jakarta and West and East Java. In 1997, the within-province component represented about 50% of regional income inequality. The crisis caused percapita GDP growth to revert to its 1995 level, but the impact was spread unevenly across provinces and districts. In 1998 regional income inequality declined to its 1993-94 level. In contrast to 1993-97, three-quarters of the 1998 decline was due to a change in between-province inequality, with the Java-Bali region playing a prominent role. The crisis appears particularly to have afflicted urban Java and urban Sumatra.

NTT Sandalwood: Roots of Disaster

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 223-240
Abstraksi Narasi : For decades the government of Nusa Tenggara Timur (NTT) province has exploited the sandalwood sector, to the detriment of the growers of the trees. Severe depletion of the stock of sandalwood in the province has been the result. This paper documents NTT policies toward the sector, which it argues have been both inefficient and inequitable, and offers a detailed approach for reform. It also examines the political economy of these policies, and argues that the case of sandalwood provides an example of the dangers of decentralisation of economic authority in the absence of local democracy.

Heinz Arndt: An Appreciation

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 163-176
Abstraksi Narasi : This appreciation was compiled on behalf of the Editorial Board of the Bulletin of Indonesian Economic Studies (BIES) by Peter McCawley, one of the first of Heinz Arndt`s graduate students to work on Indonesia, and later head of the Indonesia Project (1981-85) and joint editor of the BIES(1983-86). Heinz was the founding editor of the BIES (1965-82), and a member of its Editorial Board for the remainder of his life.

An Assessment of the Asset Management Company Modelin the Reform of Indonesia`s Banking Sector

Nama Pengarang : Jake Redway, McCawley, Peter, Stephen V. Marks, Takahiro Akita, Prema-chandra Athukorala, Booth, Anne
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 241-150
Abstraksi Narasi : Lack of satisfactory progress with reform of banking sector may imply that the chosen remedies were unworkable in the Indonesian context. These remedies, suggested by the international community, appear not to have taken proper account of the commercial and political ramifications of the new institutions and mechanisms that were to be put in place. Of key importance is the practical difficulty of finding suitable buyers for banks and assets taken over by the new bank restructuring agency. Almost the entire corporate sector was in distress as a result of the crisis, while foreign buyers were recultant to commit themselves given an inadequate legal system as well as significant nationalistic opposition to the sale of corporate assets to foreign entities. This article discusses reasons for the failure to achieve several principal objectives of the reforms, and canvasses alternative approaches that might be more successful.

Using El Nino-Southern Oscillation Climate Data to Improve Food Policy Planning in Indonesia

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 75-91
Abstraksi Narasi : Despite the impact of El Nino-Southern Oscillation (ENSO) events on climate in the Indo-Pacific region, models linking ENSO-based climate variability to Indonesian cereal Production are not well developed. This study measures connections among sea-surface temperature anomalies (SSTAs), rainfall, and Indonesian rice and corn production from 1971 to 1998. Year-to-year August SSTA fluctuations explain about half the interannual variance in paddy production during the main (wet) season. These effects are cumulative for rice: during strong El Nino years, wet season production shortfalls are not made up subsequently. For corn, the cumulative area sown is actually higher in El Nino Years than La Nina Years. Indonesia`s paddy production varies on average by 1.4 million tons for every 1Celcius change in August SSTAs. The paper illustrates how an SSTA model might assist policy makers with budgetary processes, and private sector cereal traders with framing production expectations.

Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 5-37
Abstraksi Narasi : -

Public Environmental Expenditures in Indonesia

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 61-74
Abstraksi Narasi : The economic justification for public expenditure is especially strong in the case of environmental management. Yet expenditures on environmental management have received little attention in public expenditure reviews by the World Bank and other international development organisations. An initial analysis of environmental expenditures in theIndonesian government budget between FY1994/95 and FY1998/99 yields four basic findings. First, most spending in the nominal environmental sector, sector 10 (Environment and Spatial Planning), is on non-environmental activities, and much environmental expenditure occurs in other budget sectors. Second, environmental expenditures fell sharply in real terms during the economic crisis, to levels far below those in FY94/95. Third, they also fell sharply relative to the budget and to GDP. Finally, environmental expenditures declined more in Indonesia during the economic crisis than in Malaysia, Thailand and Korea, relative to both the budget and GDP.

Herb Feith

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 39-41
Abstraksi Narasi : -
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