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This study explores the outcomes of internal migration in Indonesia, specifically focusing on the intersecting themes of ethnicity, informality, and entrepreneurial migration. We examine how Javanese migrants perceive the benefits and challenges of their migration and subsequent engagement in the informal sector as self‐employed migrants/small business owners in and around Kupang’s traditional markets. We use a sequential mixed‐methods approach (a household survey with a structured interview [n=344] and in‐depth/semi‐structured interviews [n=28] in 2020). Drawing on Hein de Haas’s framework on the internal dynamics of migration, we explore the multifaceted outcomes of entrepreneurial migration beyond the economic consequences addressed in similar studies. The perceived positive impacts of this migration include sufficient income to cover daily needs and children’s education, as well as new remittances and employment opportunities for communities in Java and Kupang. However, these broadly empowering trends were set against the experience of those migrants who, because of less informal sector labour experience, could not easily negotiate their settlement in a new host environment, leading to varied adverse consequences. Ultimately, then, the article highlights the importance of social networks, knowledge, and reciprocity in supporting the successful establishment of entrepreneurial migrants in emerging destinations. [ABSTRACT FROM AUTHOR]

This research aims to investigate, rationalize and identify the issue of legal protection for informal workers which is in the critical category. Therefore, this article is entitled Legal Protection for Informal Sector Workers in Employment Development in Indonesia: Challenges and Opportunities. The research method used is a normative juridical approach, document study, using qualitative methods in analyzing data and using secondary data as the source. The results of this research found that Law Number 6 of 2023 concerning the Determination of Government Regulations instead of Law Number 2 of 2022 concerning Job Creation into Law (Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang or UU 6/2023) does not regulate informal workers at all, so there is a vacuum in terms of legal protection for informal workers in Indonesia. Therefore, national legislation is needed regarding legal protection for informal workers, which essentially contains work agreements between employers and informal workers/labourers. In this way, the government and the legislature are expected to be able to establish regulations and legislation to protect informal and vulnerable workers amidst the increasing informalization of the labour market due to the impact of accelerated advances in information and communication technology. [ABSTRACT FROM AUTHOR]

This study aims to determine the effect of the minimum wage on employment in the formal and informal sectors in Indonesia. This study has a panel data set with a total of 170 observations consisting of 34 provinces in Indonesia during the 2017-2021 period. The use of the Ordinary Least Square (OLS) method, fixed effect, and random effect are used to compare the results of the three methods used. The results explain that the minimum wage has a negative and significant effect on the absorption of formal sector workers, while the minimum wage has a positive and significant effect on the absorption of informal sector workers. [ABSTRACT FROM AUTHOR]

Foreign bribery is a crime that occurs when an individual or company gives, promises, or offers something of value to a foreign official or person holding a public position in another country to obtain or retain a business advantage. This research explores the negative impact of the shadow economy, with a special focus on the practice of foreign bribery in Indonesia. This study uses a normative juridical approach. Researchers analyze and process collected materials qualitatively to classify legal materials and content analysis. The study's findings indicate that foreign bribery, a form of corruption involving illegal transactions between companies and foreign officials, is one manifestation of the shadow economy. This phenomenon threatens Indonesia's economic stability, social justice, and institutional integrity. Foreign bribery is against the principles of Pancasila, the Indonesian nation's basic ideology. This practice produces social and economic injustice by benefiting some people while harming others, often the most vulnerable. Indonesia needs urgent action to combat foreign bribery and its negative impact on the shadow economy. Through regulation of foreign bribery, effective law enforcement, and public education about the dangers of foreign bribery, Indonesia can strengthen the principles of Pancasila and build a more just and prosperous society. [ABSTRACT FROM AUTHOR]

Introduction: Occupational Health and Safety (OHS) for formal sector workers is held along with regulations, joint commitments, training, and continuous monitoring. This condition cannot be applied for informal sector, so it approaches that can be performed such as activating social support from workers' environment. This study aimed to determine for social support to improve the knowledge, attitude and practice of OHS workers in informal sector. Methods: This study a quasi-experimental with pre-posttest and control group design. Subjects were 90 limestone workers taken by Multistage Sampling from Gunungkidul Regency, Indonesia. Subjects were divided into health promotion by family support and peer support (FS&PS), peer support (PS), family support (FS), and control (C) group with treatment period of one month. Variables were measured using a knowledge, attitude, and practice questionnaire. The obtained data then analyzed using Kruskal-Wallis test and Mann-Whitney test. Results: There was a significant difference (p<0.001) in the knowledge, attitude and practice of OHS in limestone workers. FS&PS group gave the highest score for knowledge variable. There was no significant differences between OHS attitude between FS&PS and FS only (p=0.787). The biggest influence of attitude changes was from the FS group. The OHS practice has no significant differences between PS and C group (p=0.696), while other groups have significant differences. Conclusion: The biggest influence of changes in OHS practice was in the FS group. The combination of FS&PS is more effective in increasing knowledge, while attitude and practice are more effective if involving FS. [ABSTRACT FROM AUTHOR]

Purpose This research aims to look at the description of the characteristics and factors that influence the categories of income levels under class (vulnerable and poor) and aspiring middle class in informal sector labor in Indonesia 2022. Design/methodology/approach The dataset from raw data of the National Labor Survey (SAKERNAS) in February 2022 collected by Badan Pusat Statistik (BPS). This research used the ordinal logistic regression, model of partial proportional odds (PPOM). The dependent variable used is the income level category based on the classification determined by World Bank. Findings This research finds that 58 percent of the population are informal labor. The results of the analysis show that the level of education, job training, work experience, type of work, age, gender, marital status, working hours, and residential area classification have a significant effect on income level categories. Research limitations/implications This research only includes sample of informal sector labor who have income and based on the main job status classification from BPS. Originality/value In this research, income of informal sector labor are categorized based on classification determined by World Bank. Then there has not been much research on the characteristics of informal sector labor and what influences the level of their income category. [ABSTRACT FROM AUTHOR]

The informal sector had become an essential pillar that takes over the economy of Indonesia. While the pandemic is dragging the economy to a low level, the informal sector needs more attention from the government. Bad governance of the informal sector will lead to the creation of an underground economy that impedes economic potential. In contrast, good governance will create more massive economic growth, which will lead to the development of the formal sector. The informal sector supports the economy of low and middle-income countries than the high-income country. That statement is also shown by the data that the informal sector support 8.33% of Indonesian gross domestic product (GDP). This research aims to measure the impact of the pandemic on the inclusive and underground economy from two different perspectives, owners and workers in the underground economy system. This research was conducted by using descriptive and quantitative analysis involving a dummy variable to capture the difference between before and during the pandemic. Using time-series data, this research shows that there are significant effects of the pandemic on the changing of income, consumption, and saving for both owners and workers. Moreover, some informal activists shift to different jobs to keep the proper way of living during the pandemic. The changing of four different aspects, certainly brings society’s prosperousness to a low level. [ABSTRACT FROM AUTHOR]

This paper aims to look at the social responsibility of the tourism industry in the Mandalika Special Economic Zone, West Nusa Tenggara in involving the community in the development process. This research is qualitative research using the saturation technique in data search. The number of respondents in this study was 16 people who were interviewed in depth. The data obtained were then analyzed using 4 stages including reduction, display, triangulation, and decision-making. The findings show that the tourism sector in the Mandalika Special Economic Zone only involves a small portion of the community in development. Most of the people in KEK Mandalika are only involved in the informal sector such as renting houses, selling souvenirs, renting vehicles, selling food, etc. This is the first paper that evaluates the social responsibility of tourism activities in the Mandalika Special Economic Zone, Indonesia, particularly in involving the community in the development process. [ABSTRACT FROM AUTHOR]

The cigarette commodity is the second largest contributor to the food poverty line. Several aspects imply that poor people consume cigarettes despite having a minimal income. In this study, we are interested in investigating factors influencing poor people to be active smokers. Since the consumption number is a set of count data with zero excess, we have an overdispersion problem. This implies that a standard Poisson regression technique cannot be implemented. On the other hand, the factors involved in the model need to be selected simultaneously. Therefore, we propose to use a zero-inflated negative binomial (ZINB) regression with a minimax concave penalty (MCP) to determine the dominant factors influencing cigarette consumption in poor households. The data used in this study were microdata from the National Socioeconomic Survey (SUSENAS) conducted in March 2019 in East Java Province, Indonesia. The result shows that poor households with a male head of household, having no education, working in the informal sector, having many adult household members, and receiving social assistance tend to consume more cigarettes than others. Additionally, cigarette consumption decreases with the increasing age of the head of household. [ABSTRACT FROM AUTHOR]

This study aims to analyze: 1) the socio-economic characteristics of households of informal sector workers in Jambi City; 2) the coping strategies of these households in facing the impacts of the COVID-19 pandemic; 3) the influence of household socioeconomic characteristics on the economic coping strategies of informal sector workers in Jambi City. The primary data used in this study were sourced from a survey of households of informal sector workers in Jambi City. The analysis utilized descriptive statistical tools and structural equation modeling (SEM). The findings of the study reveal that: 1) informal sector workers are generally of productive age, with relatively good education, and predominantly engaged in trading and daily wage labor; 2) the COVID-19 pandemic has negatively impacted the social conditions of these households, particularly in terms of income, savings, and non-food expenditures; 3) in the context of economic coping strategies, the strategy of generating additional income is more commonly employed by these households compared to cutting back expenses; 4) the characteristics of the wife and the family significantly influence the coping strategies adopted by households of informal sector workers. In contrast, the characteristics of the household head do not have a significant impact. [ABSTRACT FROM AUTHOR]

The study assesses how ICT modulates the effect of informal sector on income inequality and investigates critical mass or threshold of ICT at which the diffusion of information with mobile cellular reduce income inequality. The ICT indicators are the regional ICT development index (RIDI), computer penetration and mobile cellular penetration. The empirical strategy used is Generalized Method of Moments (GMM). Covering panel data from 460 districts/cities in Indonesia for 2015–2019, the study shows that ICT measures of RIDI and computer penetration directly exacerbate income inequality, otherwise mobile cellular penetration directly reduces it. Enhancing ICT beyond certain thresholds is necessary for ICT to modulate informal sector to reduce income inequality. The corresponding ICT thresholds for the reduction of income inequality is 32.78 mobile cellular penetration per 100 people. The established thresholds make economic sense and can be feasibly implemented by policy makers to induce favourable effects on income inequality. [ABSTRACT FROM AUTHOR]

Purpose: This study is aimed at developing an understanding of the consequences of the pandemic on families' socioeconomic resilience, and the strategies adopted by the families in overcoming social vulnerabilities amid uncertainty. Design/methodology/approach: The materials for this study consist of semi-structured interviews with 21 families spread across the South Sumatra Province, Indonesia. Families in the study represent four different income levels, namely very high, high, middle and low, and who also work in the informal sector. Each family has at least 1 or more members who fall into the vulnerable category (children, the elderly, people with disabilities unemployed or having potential economic vulnerability). Findings: Two main findings are outlined. Regardless of their socioeconomic status, many of the families analyzed adopted similar strategies to remain resilient. Among the strategies are classifying the urgency of purchasing consumer goods based on financial capacity rather than needs, leveraging digital economic opportunities as alternative sources of income, utilizing more extensive informal networks and going into debt. Another interesting finding shows that the pandemic, to some extent, has saved poor families from social insecurity. This is supported by evidence showing that social distancing measures during the pandemic have reduced the intensity of sociocultural activities, which require invited community members to contribute financially. The reduction of sociocultural activities in the community has provided more potential savings for the poor. Research limitations/implications: In this study, informants who provided information about their family conditions represent a major segment of the workforce and tend to be technologically savvy and younger, due to the use of Zoom as a platform for conducting interviews. Therefore, there may be a bias in the results. Another limitation is that since the interviewees were recommended by our social network in the fields, there is a risk of a distorted selection of participants. Originality/value: This study offers insights that are critical in helping to analyze family patterns in developing countries in mitigating the risks and uncertainties caused by COVID-19. In addition, the literature on social policy and development could benefit from further research on COVID-19 as an alternative driver to identify mechanisms that could bring about change that would result in "security." Critical questions and limitations of this study are presented at the end of the paper to be responded to as future research agenda. [ABSTRACT FROM AUTHOR]

Promoting the use of assistive technology (AT) is crucial for the health and well-being of users, but there is a huge global problem of unmet need for AT. In this context informal (unregulated) providers of AT play a significant role of meeting AT user need, particularly in less-resourced settings. This study draws on research into formal and informal AT provision in low-income urban communities in Indonesia and Sierra Leone to explore the potential of informal providers in addressing unmet need. Specifically, it looks at the different performance of formal and informal providers regarding the availability and the adequacy of AT that they provide. The study concludes by proposing further research into the scope for coproduction of AT between formal and informal providers. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Application Business & Management / Jurnal Aplikasi Bisnis dan Manajemen is the property of IPB University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Introduction: Occupational Health and Safety (OHS) for formal sector workers is held along with regulations, joint commitments, training, and continuous monitoring. This condition cannot be applied for informal sector, so it approaches that can be performed such as activating social support from workers' environment. This study aimed to determine for social support to improve the knowledge, attitude and practice of OHS workers in informal sector. Methods: This study a quasi-experimental with pre-posttest and control group design. Subjects were 90 limestone workers taken by Multistage Sampling from Gunungkidul Regency, Indonesia. Subjects were divided into health promotion by family support and peer support (FS&PS), peer support (PS), family support (FS), and control (C) group with treatment period of one month. Variables were measured using a knowledge, attitude, and practice questionnaire. The obtained data then analyzed using Kruskal-Wallis test and Mann-Whitney test. Results: There was a significant difference (p<0.001) in the knowledge, attitude and practice of OHS in limestone workers. FS&PS group gave the highest score for knowledge variable. There was no significant differences between OHS attitude between FS&PS and FS only (p=0.787). The biggest influence of attitude changes was from the FS group. The OHS practice has no significant differences between PS and C group (p=0.696), while other groups have significant differences. Conclusion: The biggest influence of changes in OHS practice was in the FS group. The combination of FS&PS is more effective in increasing knowledge, while attitude and practice are more effective if involving FS. [ABSTRACT FROM AUTHOR]

This study examines digital financial inclusion and uses Fintech for informal micro small and medium enterprises (MSMEs) to overcome the financing gap. The researchers used primarily qualitative methods, namely a qualitative analysis strategy verification through inductive analysis. The results show that Indonesia's fintech landscape makes MSME a driver of the digital economy so that they can overcome the financing gap in the informal sector. The challenges faced by Fintech in encouraging MSME business efficiency in the form of unbalanced agency distribution, data security, data access problems, low digital financial literacy, low connectivity, and interoperability can be overcome by taking advantage of existing opportunities. These opportunities include the role of MFIs and cooperatives in promoting financial inclusion and the development of telecommunications infrastructure networks in Indonesia. The novelty of this research is the comprehensive evaluation of achieved progress in digital financial inclusion for MSMEs in Indonesia and the developed recommendation for regulations by relevant authorities to encourage the business efficiency of MSMEs through facilitating digital financial inclusion. [ABSTRACT FROM AUTHOR]

Copyright of Sociology & Technoscience / Sociología y Tecnociencia is the property of Universidad de Valladolid, Escuela Universitaria de Educacion and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study aims to re-examine the issues that involve outreaching the urgency of labor law for informal sector workers in the concept of the welfare state in Indonesia. The research method used is a normative juridical approach or a study of documents or literature that only focuses on labor laws currently in force in Indonesia. The qualitative method approach that is descriptive-analytic is used to describe the relationship of a phenomenon, idea, data, or fact that is found objectively. This study found that the rights, dignity, standard of living, and even the working environment of informal sector workers are still neglected by labor law in Indonesia today. The national labor law has not accommodated legal protection, guarantees, and social security, so there is a legal vacuum for informal sector workers. This condition contradicts the philosophy of Pancasila and the constitution, the 1945 Constitution of the Republic of Indonesia. Thus, efforts to develop labor laws are expected to be carried out by the government together with the legislature to make all parties have the same position in the production process for the achievement of the company's progress. will have implications for national economic growth. On the other hand, this effort is expected to create legal harmonization in the field of employment in general and especially for informal sector workers in the welfare state in Indonesia. [ABSTRACT FROM AUTHOR]

This article presents the informal recycling sector's (IRS) social, economic driving factors in five cities in Indonesia and their contribution to waste management in the cities. An on-field analysis was conducted by random and incidental sampling method of questionnaire administration followed by observation. Among the respondents (n = 178), 79% of individuals were waste pickers, 15% were small-scale waste collectors, and 6% were medium-scale waste collectors. The majority of the waste pickers sampled are male (79%). The amount of waste collected by individual waste pickers is 43.87 kg person−1 day−1, a corresponding recycling rate of approximately 12%, and an average monthly income of US$91.7. Gender differences are apparent as the male waste pickers generated higher incomes than those earned by their female counterparts (US$128.3 for men and US$69.7 for women) even as their average work hours are similar to that of the men (7.8 and 7.6 hours day−1, respectively). Economic motives are the respondents' primary driving factors as moving to large cities accompanied by their family members. The study concluded that the IRS plays substantial contribution to waste management; further integrating them into the waste management system via IRS association, additional investment, formulation of law and policies and efforts by municipalities can give various benefits for involved stakeholders, the community and the environment. The results can serve as a significant reference for improving the solid waste recycling system and informal sector management in Indonesian cities and other developing countries. [ABSTRACT FROM AUTHOR]

This Survey discusses the effects of the Covid-19 pandemic on the livelihood of Indonesian women. The pandemic has disproportionately affected women around the world, including in Indonesia, owing to gender inequalities at work and at home. Women bear most of the burden of unpaid domestic work and care for families. The pandemic has also forced adjustments in labour utilisation, and the movement of workers from formal to informal sectors. However, it has created new opportunities, including for micro, small and medium enterprises that harness digitalisation, although the sustainability of these opportunities for women is still too early to assess, owing to the persistent gender divide in Indonesia's digital economy. The possible long-term mental health effects of the pandemic are also something to watch. [ABSTRACT FROM AUTHOR]

Engaging with the special issue theme of media freedom 'from below,' this article contributes ethnographically grounded and comparative research of two democratic Southeast Asian countries dealing with urgent threats to media freedom and democracy: Indonesia and the Philippines. Our research identifies the main disinformation work models in Southeast Asia, most notably through the use of buzzers (Indonesia) and trolls (the Philippines). Our research examines the increasingly gray area between trolls, buzzers and disinformation, and their increasing relationship to political elites. By explaining recent practices of political disinformation campaigns and journalist harassment, we aim to deepen understanding as to how these campaigns are organized in order to prevent them in the future. This article ultimately calls for a critical collaboration with diverse stakeholders in countering 'fake news' by examining four dominant disinformation work models. [ABSTRACT FROM AUTHOR]

Electronic waste (e-waste) has become a major economic and environmental concern. It requires the development of sustainable and integrated recycling systems capable of recovering valuable constituents while simultaneously protecting the environment. While many developed countries have established such recycling systems, most developing countries, including Indonesia, lack such systems and have a low level of public awareness about e-waste. This article focuses on the current state of e-waste recycling in Indonesia. The estimated amount of e-waste generation and distribution in the country, potential economic recovery, relevant legal frameworks, and recycling practices are presented. The review also highlights barriers to formal e-waste management and recycling in Indonesia, such as (i) superiority of the informal sector, (ii) lack of regulation and infrastructure, (iii) lack of awareness and reliable data about e-waste, (iv) low rate of research works on recycling technology development, and (v) large diversity of socio-economic and geographic conditions in Indonesia. The study suggests strategies for establishing a sustainable e-waste recycling system in Indonesia, including potential processing routes and scenarios that integrate the actors involved in e-waste collection, pretreatment, and metal extraction. [ABSTRACT FROM AUTHOR]

The study provides evidence on the transition and growth of the formal sector in the Indonesian economy. It utilizes data from the National Labour Force Survey (Sakernas) for tracking the previous work status of labourers as formal or informal workers. The study also examines the implications of formalization of employment for the different rates of earnings of formal sector workers, given their human capital characteristics and different industries of employment. The study finds that the growth of employment in the formal sector is mainly the result of the entry of younger and better educated workers. Although there is some mobility from the informal to the formal sector, the results show that individuals who were previously working in the informal sector are less likely to move to the formal sector. In terms of earnings, there is evidence of scarring effects: individuals who are initially in the formal sector earn more than individuals who are initially in the informal sector. [ABSTRACT FROM AUTHOR]

Many developing countries, like Indonesia, struggle with tax evasion. It reduces government revenues, impeding government activities and a country's economic development. In this study, we look at the topic of tax evasion in Indonesia from 1980 to 2019. Using the "modified-cash-deposit-ratio" technique, we estimate the scale of tax evasion in Indonesia. We specifically calculate the loss in tax revenue caused by Indonesia's shadow economy. Using a variety of estimators, we then evaluate whether financial development can eliminate tax evasion. To estimate the long-run model for Indonesian tax evasion, we used Ordinary Least Squares with robust standard error (OLS-robust), Autoregressive Distributed Lag (ARDL), Dynamic OLS (DOLS), and Robust Least Squares-M-Estimation (RLE-ME). Our findings reveal that there is a non-linear long-run link between tax evasion and financial development in Indonesia, with an inverted U-shape curve indicating that a lower (higher) level of financial development corresponds to a higher (lower) level of tax evasion. An important policy implication is that the Indonesian government and the Central Bank of Indonesia should embark on programmes to increase financial inclusion, provide easy access to credit arrangements and financial facilities, and implement information technology-based financial systems capable of transmitting data to tax authorities. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic has put pressure on the informal sector, especially in developing countries. Regarding the case study found in Yogyakarta Special Region (Indonesia), this research focuses on workers in the informal sector with the following objectives: (1) to assess the impacts of COVID-19 pandemic on informal workers' conditions, (2) to identify their strategies for surviving the crisis, and (3) to analyze the existing social safety net to support their livelihood. This study surveyed 218 respondents who worked in the informal, non-agricultural sector. The data were analyzed using descriptive statistical techniques. The results confirmed that most respondents underwent a decrease in working hours and incomes. In general, they have particular coping mechanisms to survive. The results also found that most respondents had high hopes for social assistance to stabilize their livelihood. Several government programs had been issued, either by improving policies before the pandemic or by creating new ones. However, there were many barriers and challenges to implementing them so that some recommendations had been suggested in this study to help the informal workers to become more resilient. [ABSTRACT FROM AUTHOR]

The objectives of this study are first, to analyze the coping strategies of informal sector traders amid the coronavirus disease 2019 (COVID-19) pandemic; and second, to take the results of this research as social studies teaching materials in realizing sustainable development goals (SDGs). This study uses a qualitative approach with a case study method. The data collection techniques are in-depth interviews, observations, and documents of micro business actors, especially street food and food stalls. The two groups are some of the micro-entrepreneurs affected by social distancing policies. The results of the study show that there are various strategies carried out by food stall businesses and food street vendors, including online trading, storage and conversion into frozen food, and finding strategic locations. Online food application features are a mainstay for expanding marketing. Meanwhile, moving to a trading location becomes a rational choice when there are additional rules because of the COVID-19 transmission prevention policy, such as limiting business time, and not being allowed to accept food orders on the spot. To reduce losses due to the fluctuating purchasing power of customers, they process their food into frozen food and sell it via social network. The ability to adapt to this pandemic situation is material for teaching students, especially junior high schools, about adaptive economic activities. Moreover, human efforts in overcoming economic problems, so as not to increase the poverty level as expected in the SDG's are required; this can take the form of efforts to minimize poverty and develop sustainable production and consumption. [ABSTRACT FROM AUTHOR]

Indonesia faces a growing informal sector in the wake of implementing a national social health insurance system—Jaminan Kesehatan Nasional (JKN)—that supersedes the vertical programmes historically tied to informal employment. Sustainably financing coverage for informal workers requires incentivising enrolment for those never insured and recovering enrolment among those who once paid but no longer do so. This study aims to assess the ability- and willingness-to-pay of informal sector workers who have stopped paying the JKN premium for at least six months, across districts of different fiscal capacity, and explore which factors shaped their willingness and ability to pay using qualitative interviews. Surveys were conducted for 1,709 respondents in 2016, and found that informal workers' average ability and willingness to pay fell below the national health insurance scheme's premium amount, even as many currently spend more than this on healthcare costs. There were large groups for whom the costs of the premium were prohibitive (38%) or, alternatively, they were both technically willing and able to pay (25%). As all individuals in the sample had once paid for insurance, their main reasons for lapsing were based on the uncertain income of informal workers and their changing needs. The study recommends a combination of strategies of targeting of subsidies, progressive premium setting, facilitating payment collection, incentivising insurance package upgrades and socialising the benefits of health insurance in informal worker communities. [ABSTRACT FROM AUTHOR]

The scarring theory predicts that the effect of present unemployment will potentially last for the individual's entire remaining working lifetime. This paper investigates how self-employment in the informal sector, rather than unemployment per se, influences the scarring effects in Indonesia, where informality is prevalent. It finds that the scarring effect due to previous unemployment is more observable among senior workers, while that due to previous self-employment is more significant among young workers aged 25–34 years. This indicates limited opportunity for human capital accumulation in self-employment and/or use of this information as an indicator of low productivity by employers. [ABSTRACT FROM AUTHOR]

Background: Providing an enabling environment for breastfeeding is hampered by the inequitable implementation of paid maternity leave, primarily due to perceived or actual financial costs. To estimate the real cost of paid maternity leave requires using reliable methods. We compared methods utilized in two recent studies in Indonesia. Study A estimated the financial need of providing paid maternity leave in the formal sector with a 10-year forecast at 21% coverage of eligible mothers, while study B estimated similar costs for the informal sector at 100% coverage annually. Results are critical for guiding future application of either method to inform paid maternity leave policies. Methods: We compared number of covered mothers working informally, total annual cost, and cost per mother. We modified some parameters used in study A (method A) to be similar to study B (method B) for comparison, namely the period of estimate (annual), coverage (100%), estimate of women potentially breastfeeding, exchange rate, female labor force participation rate, the percentage of women working in the informal sector, and adding administration cost. Results: The methods differ in determining the number of mothers working in the informal sector who gave birth, the minimum wage as unit cost, and administrative cost. Both studies estimated the cost at various lengths of leave period. Method A requires more macro (e.g. national/regional) level data, while method B involves (e.g. individual) micro level data. We compared the results of method A with method B, respectively: 1) number of covered mothers working informally were 1,425,589 vs. 1,147,204; 2) total annual costs including administrative costs were US$650,230,167 vs. US$633,942,726, and; 3) cost/mother was US$456 vs US$553. Conclusion: Certain flexibilities can be applied to both methods, namely using parameters specific to respective regions (e.g. provincial level parameters), flexible period of analysis, and the use of administrative cost. In a setting where micro data is scarce and not easily accessible, method A provides a feasible approach, while method B will be most appropriate if suitable micro data is available. Future comparison studies in other settings are needed to provide further evidence on the strengths and weaknesses of both methods. [ABSTRACT FROM AUTHOR]

An optimally designed tax amnesty scheme can serve as a strategic component in a larger tax reform process. Such a reform can particularly assist in the tax collection efforts of developing economies like Pakistan. Pakistan's tax amnesty schemes in 2018 and 2019 helped grow the tax base substantially. India's and Indonesia's schemes in 2016 also showed promise. My study compares the recent tax amnesties adopted by these three countries (Pakistan, India and Indonesia). Based on these experiences, I propose improvements in the composition of Pakistan's tax amnesty design. An optimal tax policy cannot rely only on wide-spread enforcement, particularly in countries with large underground economies--like Pakistan, India and Indonesia. Instead, it should focus more on the optimal amnesty design alongside targeted enforcement efforts, aimed especially at documenting and taxing large underground economic activities. [ABSTRACT FROM AUTHOR]

Resumen: Partiendo de un modelo del empleo informal que presupone su heterogeneidad, los autores estiman la brecha salarial entre trabajadores formales e informales en diferentes segmentos de la distribución de ingresos mediante regresiones cuantílicas incondicionales estimadas con datos de la Encuesta de vida familiar de Indonesia. Confirman la considerable penalización de ingresos observada en estudios anteriores para muchos trabajadores informales, pero también la existencia de un grupo entre ellos cuyos ingresos son similares a los de los trabajadores formales. Estas estimaciones concuerdan con el modelo de segmentación del empleo informal de Fields (1990 y 2005). [ABSTRACT FROM AUTHOR]

In contrast to the majority of studies that have treated informal workers as a single homogeneous group, this article accounts for the possibility of "winners" and "losers" among informal workers. Applying unconditional quantile regressions to data from the Indonesian Family Life Survey, the authors are able to estimate the formal–informal wage gaps for different segments of the earnings distribution. Although the evidence confirms the existence of a substantial earnings penalty for many informal workers, there is also a group who earn roughly similar incomes to formal workers. The findings are consistent with Fields's (1990 and 2005) model of heterogeneous informal employment. [ABSTRACT FROM AUTHOR]

Background: The economic cost of not breastfeeding in Indonesia is estimated at US$1.5–9.4 billion annually, the highest in South East Asia. Half of the 33.6 million working women of reproductive age (WRA) in Indonesia (15–49 years) are informal employees, meaning they are working as casual workers or they are self-employed (small scale business) and assisted by unpaid/family worker(s). No specific maternity protection entitlements are currently available for WRA working informally in Indonesia. This study aims to estimate the financing need of providing maternity leave cash transfer (MCT) for WRA working in the informal sector in Indonesia. Method: The costing methodology used is the adapted version of the World Bank methodology by Vilar-Compte et al, following pre-set steps to estimate costs using national secondary data. We used the 2018 Indonesian National Socio-Economic Survey to estimate the number of women working informally who gave birth within the last year. The population covered, potential cash transfer's unitary cost, the incremental coverage of the policy in terms of time and coverage, and the administrative costs were used to estimate the cost of MCT for the informal sector. Result: At 100% coverage for 13 weeks of leave, the yearly financing need of MCT ranged from US$175million (US$152/woman) to US$669million (US$583/woman). The share of the yearly financing need did not exceed 0.5% of Indonesian Gross Domestic Product (GDP). Conclusions: The yearly financing need of providing MCT for eligible WRA working in the informal sector is economically attractive as it amounts to less than 0.5% of GDP nominal of Indonesia. While such a program would be perceived as a marked increase from current public health spending at the onset, such an investment could substantially contribute to the success of breastfeeding and substantial corresponding public health savings given that more than half of working Indonesian WRA are employed in the informal sector. Such policies should be further explored while taking into consideration realistic budget constraints and implementation capacity. [ABSTRACT FROM AUTHOR]

The vicious circle of poverty in a country could stop if the government was able to solve the problem of unemployment. One way to reduce unemployment is to boost investment. In addition, in the era of the industrial revolution the role of technological development also needs to be considered as a means of reducing unemployment. This study is aiming to analyze the effect of physical investment, educational investment, and technological changes on unemployment in Indonesia. The data used in this study are obtained from Indonesian Central Statistics Agency (BPS). The technological development is proxied by Index of Technology and Communication. The regression method is used to reach the aim of the study. The result of the analysis indicates that the physical investment and technological development have a negative and significant effect on unemployment. Moreover, the findings suggest that the reduction in unemployment in Indonesia is caused by many people who become online motorcycle taxi drivers in the informal sector. [ABSTRACT FROM AUTHOR]

The development of the world economy created its own footprint as a result of the phenomenon. 1/3 of that space is owned by the informal economy also referred to as the Local Economy or System D. The connotation is to imagine a work phenomenon that is truly universal without a clear basis for labor. This increasingly sophisticated and world-class phenomenon takes the place of economic space left by the formal economy. The manipulation of the vast resources, the dynamic practices that take place in the legal and illegal dimensions, provide a guarantee of employment shadowed by survival. This paper traces the phenomenon occurring on the Sebatik Islands of Malaysia and Indonesia. The study method was qualitative based on the interviews of key informants. The results suggest that this phenomenon occurs due to the fact that economic space and opportunities can be exploited for the sake of sustainability in meeting economic demands, especially marginalized groups at the border. [ABSTRACT FROM AUTHOR]

The immense wave of urbanization and the limited formal job opportunities available in large Asian cities have led to the proliferation of street vending activities, which are often controversial and sometimes illegal due to their occupation of public space. The Kutek Sunday Market in Depok municipality, Indonesia was forced to move from a busy university location to a relatively secluded residential neighbourhood. Despite this disadvantage, the market has continued to attract sizeable business. This case study, based on extensive field observation and interviews, describes how the market location was selected and how it is spatially arranged to meet the needs of vendors, residents, and shoppers. The paper shows how local residents and vendors creatively developed an open-ended, self-organized system to manage the complex tasks involved in operating the market and to adapt to uctuations in the number and characteristics of vendors and shoppers. Although the system is highly praised as an exective tool for informal economy survivability, its limited planning capacity requires cooperation with other parties to overcome unanticipated challenges. Cooperation among stakeholders has maximized the bene- fits and minimized the drawbacks of informal economic activities in a public space. [ABSTRACT FROM AUTHOR]

The presence of informal and unskilled workers are the two major characteristics of the Indonesian labor market, representing around 57.27% of the total workers in 2019. Moreover, many studies on poverty dynamics have highly emphasized education attainment as an essential factor against poverty. However, how education can influence poverty especially through the labor market has not been deeply explored. Theoretically, people having higher educational levels would have greater chances to be hired in formal jobs that provide better incomes, enabling workers to move out of poverty. This study aims to analyze the effect of education on employment mobility from informal to formal workers (informal turnover), as well as its effect on the poverty dynamics in Indonesia. The exploration of the National Panel Socio-Economic Survey (2011-2013) revealed that those with improved education tended to move out of the informal sector, indicating that education had a significant effect on the tendency of moving out of informality. The study also found that the predicted informal turnover decreased the probabilities of being transient poor and always poor by 69% and 14%, respectively. [ABSTRACT FROM AUTHOR]

This study explores the impact of minimum wages on employment in the formal and informal sectors, as well as on unemployment in Indonesia. With the ongoing debate on the employment impact of minimum wages, by using aggregate provincial panel data from 2001 to 2015, we found that in general, a minimum wage increase lowers formal sector employment and informal sector employment. An increase in minimum wages is also estimated to lower unemployment, as labor participation declined. When divided by gender, this study shows that female workers in the 15–24 age groups bear the largest loss due to a minimum wage increase. [ABSTRACT FROM AUTHOR]

App-based transport has grown rapidly in Indonesia, and now provides work for over a million private commercial drivers. A large proportion of online drivers have joined self-organised community organisations that operate on a mutual aid logic, characterised by horizontal networks and strong social commitment. This mutual aid-based approach, which builds on a long tradition of associational behaviour in Indonesia's large informal sector, has facilitated high levels of membership and member participation in small, geographically based driver communities. It is less well suited, however, to staging large-scale protests, negotiating with the app-based transport companies or engaging with government. Drawing on extensive qualitative fieldwork, this article argues that mutual aid-based organising has indeed proved an effective way to reach out to this group of non-traditional workers, but is not in itself enough to effect structural change. Ultimately, everyday forms of collectivism must be complemented by large-scale mobilisation, legal challenges and industrial action if drivers are to challenge the power of their pseudo-employers. To date, however, successful integration between driver communities and larger scale organisations has proven difficult in the face of external hostility and internal divisions. [ABSTRACT FROM AUTHOR]

This article describes the teacher's willingness to promote tax and the constraints. The often overlooked aspect of tax administration is the immense effort applied to build a partnership with the community to facilitate and improve voluntary compliance. Teachers, as one of informal leader in society, is such community. Primary data collected by survey method to high school teachers in Bogor and Jakarta in 2013 and 2015 respectively. This study finds that teachers have high willingness to participate in promote tax. Most of the them will transfer their tax knowledge and skill to their students and society. Furthermore, tax socialization and training can change their perspective of tax positively. However, lack of tax knowledge, both theoretically and practically, are the constraints. Most of them don't do their tax obligation in tax reporting because they never receive any tax withheld evidence. As the recommendation, teacher's empowerment as tax promoter can be one of solutions to develop tax people in Indonesia. Moreover, there should be more tax socialization and training for teachers, in this matter academician from universities can contribute more in such activities. The result of present study contributes to fields concerned with building tax people and improving tax morale. Further research to develop tax promoter concept from informal leader will be prospective for building tax people through community partnership. [ABSTRACT FROM AUTHOR]

This article examines the spatial practices and forms of institutionalization in the water and water sanitation sector in Jakarta, capital of Indonesia, and especially in Kampung Kojan in the Kalideres subdistrict of Jakarta. To this end, it develops a three-layered analytical framework viewing the city as a multi-scalar socio-ecological system in which different forms of human-water relations and their institutionalization are found. Particular attention is given to informality in this system and how it interacts with 'regular' state and corporate market sector practices. Within these interactive dynamics, informality is not only understood as a survival strategy but also as a creative practice connecting various social-ecological opportunities, traditional and contemporary technologies and modes of institutionalization to each other. Ongoing institutionalization processes in the formal and informal economy, as well as between them, are analysed. Opportunities to integrate and regularize the diverse water sanitation services into community-led closed water-wastewater cycles capable of ensuring public health and sustaining a bio-hydrological balance at the local level are explored. [ABSTRACT FROM AUTHOR]

Bali's recent socio-economic transformation is mainly a result of rapid growth in mass-tourism, which, as a capitalist labour-intensive industry, represents a new regime of labour that reorganises, dislocates, and multiplies wage labour opportunities. 'Localising globalisation' through labour in tourism alters conditions for gaining a living wage; yet, it also produces new contestations of gender, caste and class. This article argues that the labour regime shift has produced a large informal economy that provides new paths for social mobility for low caste Bali-Hindus, whilst at the same time class, gender and caste inequalities interlock in the shaping of different labour trajectories. [ABSTRACT FROM AUTHOR]

The implementation of Indonesia's national health insurance programme in 2014 highlights the "missing middle" problem in which non-poor workers in the informal sector remain uncovered from the health care due to self-enrolment. This study aims at examining why informal workers are reluctant to join the national health insurance even though the benefits of the programme are very generous. Observing 400 households working in the informal sector and applying the Triple Bounded Dichotomies Choice Contingent Valuation Method to observe the Willingness to Pay, this study found that 70 per cent of respondents were willing to pay a premium that is lower than the current rate. Yet, only 18.7 per cent of households had registered for national health insurance. Our econometric estimations provide evidence that the availability of hospitals, insurance literacy, experiences of being an inpatient or outpatient, the number of family members, the sex of the head of the household, access to the Internet, and household income are highly correlated to the likelihood of workers in the informal sector joining the national health insurance programme. In contrast to other studies, we found that the insurance premium was not the primary impediment. Rather, the two main obstacles were: availability of health services; and a lack of insurance literacy. Hence, this study calls for increased investment on healthcare facilitates as well as campaigns to educate the public about the importance of health insurance. [ABSTRACT FROM AUTHOR]

Summary This paper reviews competing theories about the causes of informality in developing countries and uses new data to determine which theory best explains the persistence and scale of Indonesia’s informal sector. Using nationally representative survey data on micro, small, and medium-sized firms, we find that most of Indonesia’s informal firms are very small, micro firms, with less than five employees. These firms pay low wages, are relatively unproductive when compared to large firms, are managed by individuals with low educational attainment, predominantly supply products to local markets, and have not recently attempted to expand their operations. From a small-scale, qualitative survey of firms, we find that many informal firms do not register their businesses either because they have no desire to expand or borrow from formal financial sources, or because they are avoiding taxes. Finally, we evaluate the impact of Indonesia’s one-stop-shops for business registration program, a large-scale program that attempted to reduce registration costs. We find both that the program had no effects on firms’ informality rates, and we also find that it did not reduce the probability that workers were informally employed. Taken together, the evidence suggests that a combination of the rational exit and the dual economy theories best explains why so many firms in Indonesia are informal. [ABSTRACT FROM AUTHOR]