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Recollections of My Career

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 33-49
Abstraksi Narasi : Suhadi Mangkusuwondo, Professor Emeritus of the Faculty of Economics at the University of Indonesia (FEUI), was born in Solo, Central Java, in December 1972. After participating in the war of independence, he resumed his secondary education in Malang, completing it in 1949. He then studied economics at the University of Indonesia (UI) and later became a teaching assistant there. Suhadi spent two years doing postgraduate study at the Massacchusetts Institute of Technology and later obtained a PhD in economics at the University of California at Berkeley. Returning to Indonesia and his teaching post at FEUI, he became editor of the journal Economics and Finance in Indonesia (EKI). He was Head of the R&D Agency in the Department of Trade from 1973 to 1975 and again in 1983-1988, and Director General of Foreign Trade from 1975 to 1983. Proffesor Suhadi served as the Representative of the Government of Indonesia in the Uruguay Round when it was launched in 1986, and since 1992 has been a member of the Eminent Persons Group of the APEC (Asia-Pacific Economic Cooperation) forum. His other activities include membership of Indonesia`s National Research Council (DRN), and of organisations such as the Regional Advisory Board of the ASEAN Economic Bulletin, the journal of the ASEAN Economic Research Unit of the Institute of Southeast Asian studies in Singapore. He is now also Vice Chairman of the Jakarta-based Trade and Development Institute. On 8 July 1994, Professor Suhadi talked with H.W. Arndt, Hall Hill and Thee Kian Wie about his views on Indonesia`s economic development under the New Order, and particularly about trade policy. On 19 September 1995, in a second interview with H.W. Arndt, Mari Pangestu and Thee Kian Wie, he elaborated further on his work at the Ministry of Trade and his participation in the Uruguay Round and the APEC Eminent Persons Group (EPG).

Child Malnutrition in Indonesia

Nama Pengarang : Gouranga Lal Dasvarma, Elfindri, Mangkusuwondo, Suhadi, Kelly Bird, Jones, Gavin W., Si Gde Made Mamas, J. Vernon Henderson, Kuncoro, Ari, Damhuri Nasution
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 97-111
Abstraksi Narasi : This research is concerned with the patterns of child malnutrition in Indonesia since the mid 1980s. Aggregate data show that malnourished children are found among lower income groups. In this study a 10% reduction in the proportion of the population under the poverty line was found to be accompanied by a fall of around 4-6% in the number of children suffering from protein energy malnutrition. It is suggested that poverty reduction as a development goal can make a large contribution to alleviating malnutrition. However, malnutrition, particularly among pre-school children, is still a major problem in Indonesia.

The Price of Electricity in Indonesia

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 73-101
Abstraksi Narasi : Persistent shortages of electric power and of capital to fund power system expansion have recently prompted the Indonesian government to allow the private sector to supply electricity. Price has become a controversial issue-both the retail price private producers would change the public, and the wholesale price at which they would sell in bulk to the state utility, PLN. The government has traditionally kept the retail price bellow cost to support economic development objectives, and subsidies have covered PLN`s losses. Opponents of private power argue that without subsidies private suppliers would have to raise the retail price to unaccceptable levels-according to PLN, almost 50% more per kilowatt-hour than its own price. The paper assesses PLN`s claim by quantifying hidden subsidies, and demonstrates that, if these were properly taken into account, the average retail price per kilowatt-hour for 1980-1993 should have been 46% higher than it was.

Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 3-38
Abstraksi Narasi : -

International Trade in Nutmeg and Mace: Issues and Options for Indonesia

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 103-118
Abstraksi Narasi : Indonesia produces more than three-quarters of the world`s output of nutmeg and mace. In 1986 the government introduced export regulations that facilitated cartelisation of the market. This led to a dramatioc rise in world prices. Problems such as accumulation of unsold stocks in Indonesia and smuggling of nutmeg and mace through Singapore led the government to abolish the regulations in 1990. World prices fell steeply, and since then have remained low. Indonesian nutmeg and mace exporters have called for the reregulation of the market. This paper assesses the case for reregulation, considering the costs and benefits to affected parties within Indonesia and the long-term sustainability of regulation.

Indonesian Foreign Debt: Headed for a Crisis or Financing Sustainable Growth

Nama Pengarang : Steven Radelet, Stephen Marks, Jacqueline Pomeroy, William E. James, Lorenzo Kristov
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 39-72
Abstraksi Narasi : This paper examines the build-up in Indonesia`s foreign debt between 1981 and 1993, and explores the potential for a debt crisis during Repelita VI. It concludes that Indonesia is not headed toward a crisis in the immediate future. Borowed funds have generally financed productive investments, contributing to rapid growth in GDP and exports since the late 1980s. If recent trends continue, debt should ease gradually; if not, the economy could withstand a substantial balance of payments shock, at least for a while. A debt servicing problem, although unlikely, is conceivable by the end of the decade. Short-term debt is growing rapidly, non-oil export growth has slowed, and debt service remains high. Appropriate government actions to reduce the potential for a crisis include further deregulation to support growth in non-oil exports, discouraging implicit government guarantees for private sector projects, and reducing government exposure to yen-denominated debt.

Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 3-40
Abstraksi Narasi : Indonesia`s short-term prospects look good. Over the past couple of years, the economy (as measured by GDP) has grown at the respectable rate of over 6% per annum. This rate of growth can easily absorb the 3% annual increase in new entarnts to the labour force and has resulted in a rise in per capita income of over 3% per annum. The current account deficit, which grew from 2.0% of GDP in the 1993 / 1994 fiscal year to 2.3% in 1994 / 1995, is still relatively manageable and adequately backed by foreign exchange reserves. Nevertheless, for reasons mostly of Indonesia`s own making, the country`s medium-term economic prospects do not seem as promising. The weaknesses of current economic management are evident at both the macro and micro levels of the economy. At the macro level, there is a tendency for internal and external imbalances to increase. This situation has been brought about by erosion of financial discipline and a rise in debt repayments. At present, the imbalances are masked by capital inflows causedby financial deregulation and the privatisation of PT Indosat, the state-run international telecommunications company. Pressure is rising on the budget, as well as on state banks and other financial institutions, to finance the establishment of new suboptimal activities, fund investment projects and rescue ailing companies from bankruptcy. These projects are likely financial tapeworms, eating up capital and growing fat on capitalised interest that the banks and public treasury never see. At the micro level, deregulation has failed to eliminate distortions in goods and labour markets. These distortions and the rapid growth of the money supply have fuelled inflation. Unless there are major changes in policy, Indonesia`s current high growth rates of GDP, employment and exports are unlikely to be sustainable in the medium run.

Interregional Inequalities in Indonesia: A Sectoral Decomposition Analysis for 1975-1992

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 61-81
Abstraksi Narasi : In this paper we examine interregional income inequalities in Indonesia from 1975 to 1992. Williamson`s weighted coefficient of variation is used to measure interregional income inequality. We also perform a sectoral decomposition analysis to investigate the extent to which industrial sectors contribute to the overall weighted coefficient of variation. One major finding is that, although interegional income inequality remained fairly stable in non-mining GDP during the study period, it has undergone a significant change in structure. The contribution of the tertiary sector to inequality, though stilldominant, has gradually declined. The secondary sector, meanwhile, is playing an increasingly important role, reflecting its growing share of GDP. Inequality is much smaller in consumption expenditure than in non-mining GDP. Its consistenly high levels in fixed capital formation reflect the uneven distribution of investments over space in Indonesia.

Indonesia`s Great Leap Forward? Technology Development and Policy Issues

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 83-123
Abstraksi Narasi : Technological development and technology policy are vital to Indonesian development in the 1990s and beyond. They are the subject of much public commentary and debate, there are major analytical and policy questions to be resolved, and the Indonesian government already allocates considerable resources to these activities. The purpose of this paper is to survey and assess Indonesia`s industrial technological capability, and to highlight key policy issues, in the context of the large analytical and empirical literature on this subject for developing countries. Indonesia is a latecomer by East Asian industrial standards, and thisis reflected in various technology indicators. The paper suggests directions for effective technology policy.

Farm Household Responses to Government Policies: Evidence From West Java

Nama Pengarang : M. Husein Sawit, Dennis O''Brien, Hill, Hal, Takahiro Akita, Rizal Affandi Lukman, Nasution, Anwar
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 41-59
Abstraksi Narasi : Few micro level analyses have been undertaken in Indonesia of rural households` responses to government policies, and of household characteristics and endowments. Most studies of rural household behaviour in Indonesia have analysed the consumption, production and labour supply aspects separately, ignoring the complex interrelations among farm production, farm profit, household consumption and family labour supply. In this study, the complex nature of rural household production and consumption decisions is analysed by applying a farm household model to cross-sectional data from 241 households in six villages of West Java. The model incorporates multiple crops, different wage levels for males and females, and non-agricultural employment.
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