Pub Date : 2021-05-04DOI: 10.1080/00074918.2021.1956867
Manggi Habir
role. The authors are to be congratulated for their careful analysis of the evidence. However, they do not address what are perhaps the most important questions relating to the future of Indonesia’s civil service. Is it actually too small to meet the development needs of the country? If some parts should be expanded, how can more skilled PNS be recruited and retained? How can provincial and district governments provide better services in those sectors for which they have primary responsibility? Far from being resolved, these questions will need attention for years and probably decades to come.
{"title":"Reforms, Opportunities, and Challenges for State-Owned Enterprises","authors":"Manggi Habir","doi":"10.1080/00074918.2021.1956867","DOIUrl":"https://doi.org/10.1080/00074918.2021.1956867","url":null,"abstract":"role. The authors are to be congratulated for their careful analysis of the evidence. However, they do not address what are perhaps the most important questions relating to the future of Indonesia’s civil service. Is it actually too small to meet the development needs of the country? If some parts should be expanded, how can more skilled PNS be recruited and retained? How can provincial and district governments provide better services in those sectors for which they have primary responsibility? Far from being resolved, these questions will need attention for years and probably decades to come.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"57 1","pages":"259 - 260"},"PeriodicalIF":4.1,"publicationDate":"2021-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44707849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-08DOI: 10.1080/00074918.2021.1914321
Immanuel Satya Pekerti
This study investigates the relationship between various aspects of socio-economic vulnerability and the magnitude of the Covid-19 force of infection in Jakarta using a spatial method. To analyse this relationship, the study uses a networked metapopulation epidemiological model employing village-level data on daily cases of Covid-19 during the period in which large-scale social restrictions (PSBB) were implemented in Jakarta. The results provide strong evidence that socio-economic vulnerability significantly affects the force of infection, with the direction of the effect differing depending on the aspect of socio-economic vulnerability under examination. Moreover, this study finds that socio-economic vulnerability has spillover effects on the force of infection in neighbouring subpopulations, albeit the magnitudes are not substantial.
{"title":"Impact of Socio-Economic Vulnerability on the Force of Infection of Covid-19 in Jakarta","authors":"Immanuel Satya Pekerti","doi":"10.1080/00074918.2021.1914321","DOIUrl":"https://doi.org/10.1080/00074918.2021.1914321","url":null,"abstract":"This study investigates the relationship between various aspects of socio-economic vulnerability and the magnitude of the Covid-19 force of infection in Jakarta using a spatial method. To analyse this relationship, the study uses a networked metapopulation epidemiological model employing village-level data on daily cases of Covid-19 during the period in which large-scale social restrictions (PSBB) were implemented in Jakarta. The results provide strong evidence that socio-economic vulnerability significantly affects the force of infection, with the direction of the effect differing depending on the aspect of socio-economic vulnerability under examination. Moreover, this study finds that socio-economic vulnerability has spillover effects on the force of infection in neighbouring subpopulations, albeit the magnitudes are not substantial.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"58 1","pages":"313 - 334"},"PeriodicalIF":4.1,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1914321","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42191335","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-08DOI: 10.1080/00074918.2021.1914320
A. Andriansyah, Asep Nurwanda, Bakhtiar Rifai
This paper investigates the relationship between structural change and regional economic growth in Indonesia. We utilise the shift-share method for 30 provinces over the period 2005–18 as a measure of structural change. We demonstrate that structural change has occurred across provinces, even though it is slowing towards an agricultural–services transition. By employing panel data models, this study shows that structural change is a significant determinant of growth. Structural change matters for growth if there is an increase in productivity within sectors. This study is unable to show that the movement of labour across sectors leads to higher economic growth. However, the increase in productivity within sectors has more impact on regional growth on a longer-term basis.
{"title":"Structural Change and Regional Economic Growth in Indonesia","authors":"A. Andriansyah, Asep Nurwanda, Bakhtiar Rifai","doi":"10.1080/00074918.2021.1914320","DOIUrl":"https://doi.org/10.1080/00074918.2021.1914320","url":null,"abstract":"This paper investigates the relationship between structural change and regional economic growth in Indonesia. We utilise the shift-share method for 30 provinces over the period 2005–18 as a measure of structural change. We demonstrate that structural change has occurred across provinces, even though it is slowing towards an agricultural–services transition. By employing panel data models, this study shows that structural change is a significant determinant of growth. Structural change matters for growth if there is an increase in productivity within sectors. This study is unable to show that the movement of labour across sectors leads to higher economic growth. However, the increase in productivity within sectors has more impact on regional growth on a longer-term basis.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"59 1","pages":"91 - 117"},"PeriodicalIF":4.1,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1914320","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45496921","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-08DOI: 10.1080/00074918.2021.1914817
T. Siregar
Using district-level data for urban areas in Java, we assess the impact of minimum wages on formal- and informal-sector employment, unemployment and labour participation. We employ the spatial Durbin model for our estimation and allow labour markets to be spatially correlated across districts. Our findings suggest that a minimum-wage rise affects mainly the local labour market where the minimum-wage increase occurs. The spillover effects of a minimum-wage increase on neighbouring districts are negligible, except for the impact on labour participation. The results of this study highlight the need to account for spatial dependence when modelling formal-sector employment, unemployment and labour participation, as we found those variables to be geographically correlated, at least across districts in Java.
{"title":"Investigating the Effects of Minimum Wages on Employment, Unemployment and Labour Participation in Java: A Dynamic Spatial Panel Approach","authors":"T. Siregar","doi":"10.1080/00074918.2021.1914817","DOIUrl":"https://doi.org/10.1080/00074918.2021.1914817","url":null,"abstract":"Using district-level data for urban areas in Java, we assess the impact of minimum wages on formal- and informal-sector employment, unemployment and labour participation. We employ the spatial Durbin model for our estimation and allow labour markets to be spatially correlated across districts. Our findings suggest that a minimum-wage rise affects mainly the local labour market where the minimum-wage increase occurs. The spillover effects of a minimum-wage increase on neighbouring districts are negligible, except for the impact on labour participation. The results of this study highlight the need to account for spatial dependence when modelling formal-sector employment, unemployment and labour participation, as we found those variables to be geographically correlated, at least across districts in Java.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"58 1","pages":"195 - 227"},"PeriodicalIF":4.1,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1914817","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46539146","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-08DOI: 10.1080/00074918.2020.1866745
T. Wicaksono, Carlos Mangunsong
This study examines the impact of Indonesia’s bonded zone policies on the performance of firms. We use a difference-in-differences approach and exploit differences in the timing of bonded zone approvals as our identification strategy. As administrative data on firms in bonded zones are not publicly available, we construct a new dataset based on bonded zone approvals during the period 1986–2005. We find that bonded zones have only modest effects on output per worker, number of products and exports. They do, however, appear to stimulate employment growth in the short run. We also find that bonded zones increase both the extensive and intensive export margins of firms connected to international networks, as measured by foreign ownership. The evidence suggests that without favourable investment policies to encourage more foreign investment, fiscal and place-based incentives are not enough to facilitate the growth of exports.
{"title":"Export Promotion Policies and the Performance of Firms: Evidence from Bonded Zones In Indonesia","authors":"T. Wicaksono, Carlos Mangunsong","doi":"10.1080/00074918.2020.1866745","DOIUrl":"https://doi.org/10.1080/00074918.2020.1866745","url":null,"abstract":"This study examines the impact of Indonesia’s bonded zone policies on the performance of firms. We use a difference-in-differences approach and exploit differences in the timing of bonded zone approvals as our identification strategy. As administrative data on firms in bonded zones are not publicly available, we construct a new dataset based on bonded zone approvals during the period 1986–2005. We find that bonded zones have only modest effects on output per worker, number of products and exports. They do, however, appear to stimulate employment growth in the short run. We also find that bonded zones increase both the extensive and intensive export margins of firms connected to international networks, as measured by foreign ownership. The evidence suggests that without favourable investment policies to encourage more foreign investment, fiscal and place-based incentives are not enough to facilitate the growth of exports.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"59 1","pages":"61 - 89"},"PeriodicalIF":4.1,"publicationDate":"2021-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2020.1866745","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41937537","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-02DOI: 10.1080/00074918.2019.1643824
Euijune Kim, Yasir Niti Samudro
This article analyses whether government policies that reallocate funding for fuel subsidies to investment in transport infrastructure improve economic growth and income distribution. We develop a financial computable general equilibrium model to simulate the fiscal policies that reduce fuel subsidies to finance road investment. The novelty of this article is a dynamic model that covers multiple sectors, households, economic actors, assets and labour types. We find that reallocating fuel subsidy funding to infrastructure investment positively affects economic growth but adversely affects equality. We also find that investing in infrastructure through bank loans results in better economic growth and income distribution than reallocating subsidy funding does. Lastly, we find that investing in transport infrastructure through tax revenue can improve welfare, economic growth and income distribution.
{"title":"Reducing Fuel Subsidies and Financing Road Infrastructure in Indonesia: A Financial Computable General Equilibrium Model","authors":"Euijune Kim, Yasir Niti Samudro","doi":"10.1080/00074918.2019.1643824","DOIUrl":"https://doi.org/10.1080/00074918.2019.1643824","url":null,"abstract":"This article analyses whether government policies that reallocate funding for fuel subsidies to investment in transport infrastructure improve economic growth and income distribution. We develop a financial computable general equilibrium model to simulate the fiscal policies that reduce fuel subsidies to finance road investment. The novelty of this article is a dynamic model that covers multiple sectors, households, economic actors, assets and labour types. We find that reallocating fuel subsidy funding to infrastructure investment positively affects economic growth but adversely affects equality. We also find that investing in infrastructure through bank loans results in better economic growth and income distribution than reallocating subsidy funding does. Lastly, we find that investing in transport infrastructure through tax revenue can improve welfare, economic growth and income distribution.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"57 1","pages":"111 - 133"},"PeriodicalIF":4.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2019.1643824","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46836825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-02DOI: 10.1080/00074918.2021.1908875
I. Azis
{"title":"Asia’s Journey to Prosperity: Policy, Market, and Technology over 50 Years","authors":"I. Azis","doi":"10.1080/00074918.2021.1908875","DOIUrl":"https://doi.org/10.1080/00074918.2021.1908875","url":null,"abstract":"","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"57 1","pages":"137 - 140"},"PeriodicalIF":4.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1908875","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46434461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-02DOI: 10.1080/00074918.2021.1908207
Della Temenggung, Adhi N. Saputro, R. Rinaldi, Deasy D. P. Pane
The worst of the Covid-19-induced economic crisis appears to be behind Indonesia, with the economic contraction lessening in the second half of 2020. While the economic downturn 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 infection as the number of new cases reported each day continued to rise. Facing criticism over the government’s handling of the pandemic, President Joko Widodo reshuffled his cabinet at the end of 2020. This Survey examines Indonesia’s plans to manage a longer-than-expected recovery 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 a 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 to improve the investment climate and create jobs for economy recovery and long-term structural transformation.
{"title":"Managing Recovery and Seizing Reform Opportunities","authors":"Della Temenggung, Adhi N. Saputro, R. Rinaldi, Deasy D. P. Pane","doi":"10.1080/00074918.2021.1908207","DOIUrl":"https://doi.org/10.1080/00074918.2021.1908207","url":null,"abstract":"The worst of the Covid-19-induced economic crisis appears to be behind Indonesia, with the economic contraction lessening in the second half of 2020. While the economic downturn 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 infection as the number of new cases reported each day continued to rise. Facing criticism over the government’s handling of the pandemic, President Joko Widodo reshuffled his cabinet at the end of 2020. This Survey examines Indonesia’s plans to manage a longer-than-expected recovery 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 a 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 to improve the investment climate and create jobs for economy recovery and long-term structural transformation.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"57 1","pages":"1 - 28"},"PeriodicalIF":4.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1908207","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44443892","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-02DOI: 10.1080/00074918.2021.1908877
V. Hadiz
{"title":"Democracy in Indonesia: From Stagnation to Regression?","authors":"V. Hadiz","doi":"10.1080/00074918.2021.1908877","DOIUrl":"https://doi.org/10.1080/00074918.2021.1908877","url":null,"abstract":"","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"57 1","pages":"135 - 137"},"PeriodicalIF":4.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1908877","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41652239","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-02DOI: 10.1080/00074918.2021.1909808
Joko Widodo
{"title":"Glossary","authors":"Joko Widodo","doi":"10.1080/00074918.2021.1909808","DOIUrl":"https://doi.org/10.1080/00074918.2021.1909808","url":null,"abstract":"","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"57 1","pages":"143 - 146"},"PeriodicalIF":4.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1909808","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44080827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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