Abstract:After Indonesia introduced its sweeping decentralization reforms in 2001, basic government functions—including the authority to set minimum wages—were devolved to local governments. We study the effect of increases in the minimum wage on employment by examining plant-level panel data from 1994 to 2015. We focus on five neighbouring local government areas in West Java province, which used to have the same minimum wage before the 2001 reforms and which have since established different minimum levels of mandatory remuneration. According to our baseline analysis, a 1 per cent increase in the minimum wage in real terms reduced the number of workers employed by manufacturing plants in that area the following year by 0.35 to 0.51 per cent. This suggests that, after 2001, the number of employees in manufacturing firms operating in the local government with the highest average minimum wage (Bekasi municipality) decreased by 3.7 to 5.4 per cent compared to the municipality with the lowest average minimum wage (Bogor municipality). We also find that the negative effects were mainly observed in large plants with more than 100 employees as of 1994. We check the robustness of our baseline analysis by changing the definition of factory size, including plants that had exited the labour market or moved out to other locations, and by changing the specification of time trends by local government.
{"title":"The Effect of Increasing the Minimum Wage on Employment in Indonesia An Analysis of Manufacturing Firms in West Java from 1994 to 2015","authors":"Takayuki Higashikata","doi":"10.1355/ae38-3e","DOIUrl":"https://doi.org/10.1355/ae38-3e","url":null,"abstract":"Abstract:After Indonesia introduced its sweeping decentralization reforms in 2001, basic government functions—including the authority to set minimum wages—were devolved to local governments. We study the effect of increases in the minimum wage on employment by examining plant-level panel data from 1994 to 2015. We focus on five neighbouring local government areas in West Java province, which used to have the same minimum wage before the 2001 reforms and which have since established different minimum levels of mandatory remuneration. According to our baseline analysis, a 1 per cent increase in the minimum wage in real terms reduced the number of workers employed by manufacturing plants in that area the following year by 0.35 to 0.51 per cent. This suggests that, after 2001, the number of employees in manufacturing firms operating in the local government with the highest average minimum wage (Bekasi municipality) decreased by 3.7 to 5.4 per cent compared to the municipality with the lowest average minimum wage (Bogor municipality). We also find that the negative effects were mainly observed in large plants with more than 100 employees as of 1994. We check the robustness of our baseline analysis by changing the definition of factory size, including plants that had exited the labour market or moved out to other locations, and by changing the specification of time trends by local government.","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"38 1","pages":"358 - 374"},"PeriodicalIF":0.5,"publicationDate":"2022-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43185620","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract:Since the 1998 Reformasi process, Indonesia has decentralized and granted wide-ranging autonomy to its subnational governments. Two decades following these reforms, it is crucial to ask the extent to which decentralization has strengthened state capacity—namely, the ability of the administration to deliver development. Of the various dimensions of state capacity, we focus on two: the structure of public administration; and the provision of local public services. To this end, we analyse statistics from the periods prior to and following decentralization. In addition, we draw on key informant interviews and refer to our personal experience in government to provide depth and nuance to our findings. We find that, in some respects, decentralization in Indonesia has managed to achieve what it promised, but failed to deliver in others. Most indicators of state capacity regarding the delivery of public services improved under decentralization. This progress was probably linked to the increase in the quality of public administration at the local level. However, disparities and gaps in local state capacity are also evident. In some aspects of the economy, the disparity in the provision of social and basic services has deepened. Decentralization has also made policy coordination between central and subnational governments in delivering development more complex, due to the high level of political intervention at both levels.
{"title":"Institutions, Outputs and Outcomes: Two Decades of Decentralization and State Capacity in Indonesia","authors":"Y. Nugroho, Sujarwoto","doi":"10.1355/ae38-3b","DOIUrl":"https://doi.org/10.1355/ae38-3b","url":null,"abstract":"Abstract:Since the 1998 Reformasi process, Indonesia has decentralized and granted wide-ranging autonomy to its subnational governments. Two decades following these reforms, it is crucial to ask the extent to which decentralization has strengthened state capacity—namely, the ability of the administration to deliver development. Of the various dimensions of state capacity, we focus on two: the structure of public administration; and the provision of local public services. To this end, we analyse statistics from the periods prior to and following decentralization. In addition, we draw on key informant interviews and refer to our personal experience in government to provide depth and nuance to our findings. We find that, in some respects, decentralization in Indonesia has managed to achieve what it promised, but failed to deliver in others. Most indicators of state capacity regarding the delivery of public services improved under decentralization. This progress was probably linked to the increase in the quality of public administration at the local level. However, disparities and gaps in local state capacity are also evident. In some aspects of the economy, the disparity in the provision of social and basic services has deepened. Decentralization has also made policy coordination between central and subnational governments in delivering development more complex, due to the high level of political intervention at both levels.","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"38 1","pages":"296 - 319"},"PeriodicalIF":0.5,"publicationDate":"2022-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42653138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Following the end of the New Order in 1998, Indonesia embarked on a far-reaching decentralization drive. Envisioned as a means of restoring political rights to citizens, disrupting the country’s pervasive patronage networks, and quelling calls for regional autonomy, Jakarta devolved extensive governmental responsibilities to the subnational level. To this end, sweeping changes were passed which curbed the power of the executive, revitalized the role of the legislature, and rolled back controls on political life. In addition, financial resources and administrative authority in a wide range of areas were devolved to local governments, namely municipalities and regencies. These measures were drawn up in 1998, legislated in 1999, and implemented in 2001. The key provisions were the following: Law 1999/22 on regional government, which transferred a significant proportion of government responsibilities in areas such as education, health and infrastructure to the local level, and introduced elections for the local and provincial levels; and Law 1999/25 on the fiscal balance between the centre and the regions, which established the financial infrastructure to enable these changes (Ostwald, Tajima and Samphantarak 2016). With these measures, Indonesia went from having one of the world’s most centralized government structures to one of the most decentralized, with only a core set of responsibilities such as foreign affairs, defence, and monetary policy remaining at the centre. Early reviews carried out by organizations like the World Bank (2005) labelled Indonesia as a leader in Southeast Asia for the breadth and depth of its decentralization drive. Two decades after the reforms were enacted, it is timely to review the effects of these changes. On the one hand, surveys have indicated broad-based support for the decentralization reforms (KPPOD 2017, 2021). However, much of this backing may have been derived from the decentralization’s political rather than economic or service delivery implications. For example, the decentralization drive has: revitalized
{"title":"The Impact of Indonesia’s Decentralization Reforms Two Decades On: Introduction","authors":"S. Negara, Francis E. Hutchinson","doi":"10.1355/ae38-3a","DOIUrl":"https://doi.org/10.1355/ae38-3a","url":null,"abstract":"Following the end of the New Order in 1998, Indonesia embarked on a far-reaching decentralization drive. Envisioned as a means of restoring political rights to citizens, disrupting the country’s pervasive patronage networks, and quelling calls for regional autonomy, Jakarta devolved extensive governmental responsibilities to the subnational level. To this end, sweeping changes were passed which curbed the power of the executive, revitalized the role of the legislature, and rolled back controls on political life. In addition, financial resources and administrative authority in a wide range of areas were devolved to local governments, namely municipalities and regencies. These measures were drawn up in 1998, legislated in 1999, and implemented in 2001. The key provisions were the following: Law 1999/22 on regional government, which transferred a significant proportion of government responsibilities in areas such as education, health and infrastructure to the local level, and introduced elections for the local and provincial levels; and Law 1999/25 on the fiscal balance between the centre and the regions, which established the financial infrastructure to enable these changes (Ostwald, Tajima and Samphantarak 2016). With these measures, Indonesia went from having one of the world’s most centralized government structures to one of the most decentralized, with only a core set of responsibilities such as foreign affairs, defence, and monetary policy remaining at the centre. Early reviews carried out by organizations like the World Bank (2005) labelled Indonesia as a leader in Southeast Asia for the breadth and depth of its decentralization drive. Two decades after the reforms were enacted, it is timely to review the effects of these changes. On the one hand, surveys have indicated broad-based support for the decentralization reforms (KPPOD 2017, 2021). However, much of this backing may have been derived from the decentralization’s political rather than economic or service delivery implications. For example, the decentralization drive has: revitalized","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"38 1","pages":"289 - 295"},"PeriodicalIF":0.5,"publicationDate":"2022-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41414792","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract:An education system needs valid and objective information on student learning outcomes at a sufficiently disaggregated geographical level. Such data can inform policymakers on specific aspects in each geographical area that require attention and provide an indication of the returns to public investments in education. They are the starting point for any effort to improve the performance of an education system. Without information on learning outcomes, policy reforms or higher public investments in education are unlikely to be effective. Indonesia’s education system does not currently have such information. In this paper, we take advantage of a government policy to change the mode of the national examination administration, from paper-based to computer-based testing, to estimate the quality of education in Indonesia at the district level. Our results indicate that education quality across the country’s districts is highly heterogeneous. The gap in results between the highest-scoring and lowest-scoring districts shows that children in the latter have been attending schools for nine years with minimal learning outcomes. We find that, over the course of one year, the average quality of education has increased slightly and the variation in quality has declined slightly. However, these national averages mask significant heterogeneities across and within districts.
{"title":"Education Quality across Indonesia’s Districts: Estimations from a Policy Experiment","authors":"Goldy Dharmawan, D. Suryadarma","doi":"10.1355/ae38-3g","DOIUrl":"https://doi.org/10.1355/ae38-3g","url":null,"abstract":"Abstract:An education system needs valid and objective information on student learning outcomes at a sufficiently disaggregated geographical level. Such data can inform policymakers on specific aspects in each geographical area that require attention and provide an indication of the returns to public investments in education. They are the starting point for any effort to improve the performance of an education system. Without information on learning outcomes, policy reforms or higher public investments in education are unlikely to be effective. Indonesia’s education system does not currently have such information. In this paper, we take advantage of a government policy to change the mode of the national examination administration, from paper-based to computer-based testing, to estimate the quality of education in Indonesia at the district level. Our results indicate that education quality across the country’s districts is highly heterogeneous. The gap in results between the highest-scoring and lowest-scoring districts shows that children in the latter have been attending schools for nine years with minimal learning outcomes. We find that, over the course of one year, the average quality of education has increased slightly and the variation in quality has declined slightly. However, these national averages mask significant heterogeneities across and within districts.","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"38 1","pages":"401 - 425"},"PeriodicalIF":0.5,"publicationDate":"2022-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46058795","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Vietnam‘s Basic Education Quality in the Wake of Standardization Policy and National Curriculum Reform","authors":"Bich-Hang Duong, Ni Nguyen","doi":"10.1355/ae39-sb","DOIUrl":"https://doi.org/10.1355/ae39-sb","url":null,"abstract":"","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"1 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84890785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"BOOK REVIEW: The Economic Consequences of Globalization on Thailand, by Juthathip Jongwanich","authors":"Piyapong Sangkaew","doi":"10.1355/ae39-3i","DOIUrl":"https://doi.org/10.1355/ae39-3i","url":null,"abstract":"","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"12 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81416673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"BOOK REVIEW: In the Shadow of the Palms: More-Than-Human Becomings in West Papua, by Sophie Chao","authors":"S. Rahman","doi":"10.1355/ae39-3h","DOIUrl":"https://doi.org/10.1355/ae39-3h","url":null,"abstract":"","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"127 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75698457","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"BOOK REVIEW: The Political Economy of Automotive Industrialization in East Asia, by Richard F. Doner, Gregory W. Noble and John Ravenhill","authors":"T. S. Yean","doi":"10.1355/ae39-2h","DOIUrl":"https://doi.org/10.1355/ae39-2h","url":null,"abstract":"","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"34 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82677657","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"BOOK REVIEW: 50 Years of CSIS: Ideas and Policy in Indonesia, by Peter McCawley.","authors":"S. Grenville","doi":"10.1355/ae39-2g","DOIUrl":"https://doi.org/10.1355/ae39-2g","url":null,"abstract":"","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"30 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77652821","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Quality of Basic Education in Southeast Asia: Introduction","authors":"Sameer Khatiwada, S. Negara, D. Suryadarma","doi":"10.1355/ae39-sa","DOIUrl":"https://doi.org/10.1355/ae39-sa","url":null,"abstract":"","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"36 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77359423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：