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Recent evidence based on US data suggests that the quarter or month of birth (QOB or MOB) may be endogenous, since family characteristics can explain up to 50% of the effects of QOB on the education outcomes and earnings of adult males. In this study, based on a sample of one million Taiwanese siblings, we examine university admission at age 18 as our outcome variable and find that at school entry, the oldest (September born) children are 31-38% more likely to be admitted into university at age 18 than the youngest (August born) children, indicating strong seasonality in university admission. The inclusion of controls for family background is found to explain only a small portion of these effects, particularly for males. Given that such results are at odds with the recent US evidence, we revisit the US Census data and find that when racial differences are properly controlled for in the estimation, even a rich set of family characteristics is capable of explaining only a minor proportion of the QOB effects. Furthermore, using data from the US and Indonesia, we find that seasonal temperature variation is unlikely to be an important contributor to the US-Taiwan disparity. Our findings imply that the validity of using QOB or MOB as an instrumental variable may be dependent on the population being studied and the sample selected. [ABSTRACT FROM AUTHOR]

The article informs about economical reformation in Indonesia. Topics include economic reforms in the mid-1960s and mid-1980s which increased economic growth and improved prosperity and welfare in the country; requirement of taking reforms and its impact on economy; and views of European Commission president Jean Claude Juncker, on efforts made by Indonesian government for same.

A number of studies have examined emotional and belief responses following a disaster, yet there has been limited comparative analysis of responses to disasters in different places. This paper reviews the results of 366 questionnaires that evaluated key emotional and belief concepts in Haiti after the earthquake on 12 January 2010 (n=212) and in Indonesia after the earthquake in Yogyakarta on 27 May 2006 (n=154). The results indicate significant differences between the responses in the two settings, particularly in relation to feelings of impunity, self-blame for the disaster, regret about pre-earthquake behaviour, and a sense of justice in the world. Furthermore, the impacts of age, education, and gender on responses also were different in the two case study sites. Overall, the results suggest that understanding the cultural, religious, and social contexts of different disaster locales is important in comprehending the emotions and beliefs that manifest themselves in the wake of a major disaster. [ABSTRACT FROM AUTHOR]

Despite its significance in household welfare, little is known about the capacity of intrahousehold risk sharing arrangements to insure consumption against major health shocks. Using rich health data from the Indonesian Family Life Survey, this study finds no evidence of full insurance against adult morbidity in rural Indonesia. In particular, the results show sizable and significant effects of adult morbidity on food consumption. They imply that, despite the recent health sector reforms of Indonesia, the health insurance system is not effective in shielding agricultural households against some severe and long lasting health shocks. (O12,I15) Copyright © 2015 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Differences in agglomeration externalities and industrial regimes between locations generate performance differentials for their localized economic activities. For more than two decades, scholars have debated which externality is dominant for growth and under which regime. This study aims to resolve this debate by analyzing the influence of agglomeration economies on the growth of five-digit manufacturing sectors and firms for Indonesian cities and regencies between 2000 and 2009. This is investigated employing the recent reconceptualization of variety based on sectoral linkages distinguishing related and unrelated varieties, which allow assessing their idiosyncratic economic roles. The findings support that economic relatedness is the dominant source for expansion of sectors and firms within Indonesian locations. Specialized clusters and competition are inversely related to manufacturing growth, although the latter fosters sectoral employment within Indonesian regencies. Population density and human capital show antithetic effects between cities and regencies due to their distinctive urbanization trajectories and industrial compositions. [ABSTRACT FROM AUTHOR]

The article offers information on big power rivalry and domestic politics on deal of high-speed railway between Jakarta and Bandung. Topics discussed include different angles as shown by the local and foreign media of the deal, project given to Kereta Cepat Indonesia China (KCIC) as a joint venture of state-owned China Railway International Group, and importance of Japan and China for economic growth of Indonesia.

ABSTRACT This article examines the role of the state in the appropriation and control of land in Indonesian palm oil and agrofuel production. Drawing on political ecology and critical state and hegemony theory, it focuses particularly on the legal state strategies that support the hegemonic project of agro-industrial and export-oriented palm oil and agrofuel production. The article analyses the structural, strategic and spatial selectivities - the mechanisms of marginalization and privilege - that accompany the strategies the state employs. Three important strategies are discussed, namely the codification of land ownership, the concentration of land possession and the valorization of natural resources in the context of de- and recentralization. The article concludes that these legal state strategies represent an important means to organize and protect a large-scale palm oil project as they succeed in universalizing dominant interests whilst at the same time (partially) integrating subaltern interests. [ABSTRACT FROM AUTHOR]

This article draws attention to the emergent modes of urban sociality and circumscribed mobility that define the lives of traffic-stricken residents in the megacity of Jakarta, Indonesia. I argue that Jakarta traffic has exceeded the scale and discourse of a technopolitical problem of failed infrastructure; rather, the systemic and rhizomic nature of traffic provides the temporal infrastructure that governs the flow of living and leisure, and the patterning of individual desires and struggles in urban Indonesia. I use the term 'absolute traffic' to convey the limit horizon of gridlock as a set of exhausting physical and psychic states that urban residents survive daily. Despite such overwhelming challenges to mobility, particularly for the city's underprivileged populations, I argue for an agentive perspective of absolute traffic in which forms of play, negotiation and disruption form important moments for the public display of infrastructural aptitude. Strategies for surviving and engaging with absolute traffic emerge in ephemeral sites of finely attuned traffic subjectivity --in the sociality of strangers, the political demonstrations of activists, the growing citizen journalism for traffic reports on radio shows and social media sites, and finally, in the artistic sensibility of artists captivated by the vernacular forms of urban chaos. [ABSTRACT FROM AUTHOR]

This paper documents the impact of exporting on capital accumulation across heterogeneous manufacturing firms in Indonesia. The findings show that entering export markets significantly increases investment behavior during the year of initial entry and for as much as three years after entry. The results imply that the investment rate among new exporters is 37% higher than non-exporters in the year of entry and 14-26% higher in the three years after entry. Using detailed data on firm ownership, the paper further show that foreign-owned affiliates invest at systematically higher rates upon entry into export markets. The estimates indicate that domestically owned exporters are potentially credit constrained and suggest that improving credit market access may increase the investment rate among domestic exporters by as much as 40% in the year of entry. [ABSTRACT FROM AUTHOR]

Based on the 2008-2010 Susenas panel data, this study examines expenditure inequality from spatial perspectives in Indonesia, using three decomposition methods: (i) a conventional Theil index decomposition; (ii) an alternative Theil index decomposition proposed by Elbers et al. (2008); and (iii) the Blinder− Oaxaca decomposition. Our results show that overall inequality in per capita expenditure increases between 2008 and 2010, which coincides with a rising trend in the official Gini coefficient. The contribution of inequality within urban and rural areas to total inequality is larger than that of inequality between urban and rural areas. Looking within urban and rural areas, urban inequality is significantly higher than rural inequality. Java- Bali in particular records very high urban inequality. Overall, urban inequality increases, urban-rural inequality remains stable, rural inequality decreases, and inequality at the national level increases. Although urban-rural inequality has a relatively low share in overall inequality, the share is not small enough to ignore its impact. Furthermore, when using the alternative decomposition method, the contribution of urban-rural inequality increases substantially. The present study also found that educational differences appear to have played an important role in expenditure inequality within urban areas and between urban and rural areas. [ABSTRACT FROM AUTHOR]

Indonesia is a net importer of almost all of its staple foods. National self-sufficiency in food, especially the main staple, rice, is a core objective of economic policy. Poverty reduction is also a core policy objective. Since the 1970s, Indonesia has used agricultural input subsidies, especially on fertilizer, to stimulate agricultural production, largely in pursuit of the goal of rice self-sufficiency. More recently, it has also used output protection, especially in rice, for the same purpose. This article utilizes a multisectoral, multihousehold general equilibrium model of the Indonesian economy to study the trade-offs between the goals of self-sufficiency and poverty reduction when two alternative means are used to achieve them: a fertilizer subsidy, on the one hand, and output protection, on the other. It does this by analyzing the aggregate and distributional effects of these two sets of policies and by comparing their effects with nonintervention. The analysis shows that, in terms of its effects on poverty, a fertilizer subsidy can be a more effective instrument for achieving the goal of rice self-sufficiency than final product import restrictions. [ABSTRACT FROM AUTHOR]

The durability of central city districts in large metropolitan systems of the majority world has largely been attained through intricate intersections of physical, infrastructural, human and discursive materials, as these intersections are continuously remade through shifting constellations of the incremental initiatives of residents. Residents have learned to use the city as a place to continuously explore new relationships among things and extract a wide range of unanticipated capacities from them. This is a collective resourcefulness from which there might be much to draw in terms of using the carbon-driven exigencies of infrastructural transformation as the occasion to reanimate more egalitarian political projects. Although many collective efforts are increasingly being disassembled, the reflections of a single resident of one of Jakarta's most heterogeneous residential districts points to how the revitalization of such efforts might be conceived. The efficacy of political efforts to address intensified vulnerability partly entails replenishing intense mixtures of built and physical environments as provocations and platforms for complex social maneuvers. [ABSTRACT FROM AUTHOR]

This paper employs vector autoregressive ( VAR) models to measure the impact of monetary policy shocks on regional output in Indonesia. We find substantial cross-regional variation in policy responses in terms of both magnitude as well as timing. Our work adds to the existing literature by providing insights from a large developing country, viz. Indonesia, where monetary policy has both a national and a regional dimension. The results support previous findings that the differential regional effects of monetary policy are significantly related to sectoral composition (especially the share of manufacturing), providing evidence for the relevance of the interest rate channel of monetary policy. We also find that firm size contributes to these differences, providing evidence for the importance of the credit channel. As a whole, both types of channels appear to operate simultaneously in the decentralized Indonesian monetary policy and to impact on the real part of the regional economy. [ABSTRACT FROM AUTHOR]

Spikes in international food prices in 2007-2008 worsened poverty incidence in Indonesia, both rural and urban, but only by small amounts. The paper reaches this conclusion using a multisectoral and multihousehold general equilibrium model of the Indonesian economy. The negative effect on poor consumers, operating through their living costs, outweighed the positive effect on poor farmers, operating through their incomes. Indonesia's post-2004 rice import restrictions shielded its internal rice market from the temporary world price increases, muting the increase in poverty. But it did this only by imposing large and permanent increases in both domestic rice prices and poverty incidence. Poverty incidence increased more among rural than urban people, even though higher agricultural prices mean higher incomes for many of the rural poor. Gains to poor farmers were outweighed by the losses incurred by the large number of rural poor who are net buyers of food, and the fact that food represents a large share of their total budgets, even larger on average than for the urban poor. The main beneficiaries of higher food prices are not the rural poor, but the owners of agricultural land and capital, many of whom are urban based. [ABSTRACT FROM AUTHOR]

The growing flow of migrants' remittances has generated much interest in understanding the socio-economic consequences of household migration for individuals and families in migrant-sending areas. In this paper, I examine the effect of household migration on health status, as measured by nutritional status, of adults who have remained behind in rural Indonesia, a setting with a high rate of out-migration and poor nutritional profiles. Assuming that remittances may improve household economic resources and thus change dietary intake and health-related investment, household migration may be associated with the risks of both undernutrition and overnutrition. The analyses use longitudinal data from the Indonesian Family Life Survey and fixed-effect regressions. The results show that adults in emigrant households were significantly less susceptible to being underweight than those in non-migrant households, but that they did not have an increased risk of being overweight. The improved nutritional status was restricted to people in households with labour migrants, highlighting the role of remittances in improving nutritional intake. The health gain was also concentrated among women, increased with the number of out-migrants and was revealed over time as remittances arrived. Overall, this study demonstrates the beneficial role of household migration, and especially the resulting remittances, in the health status of household members in resource-constrained settings. Improving transfers of remittances would be helpful in reducing the problem of undernutrition in poor migrant-sending areas. [ABSTRACT FROM AUTHOR]

The article reviews the book "The Indonesian Economy: Entering a New Era," edited by Aris Ananta, Muljana Soekarni and Sjamsul Arifin.

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The article presents a comparison of Indonesia and Nigeria, in terms of demographic transition trends as of January 2011. The two countries are said to be similar in many respects, as they are both part of the developing world, relatively well-stocked with natural resources, and have passed through similar stages of post-colonial ethnic conflicts and authoritarian rule. However, Indonesian life expectancy has risen, poverty has been reduced, and fertility has declined. In Nigeria, life expectancy remains low, birth rates are high, and poverty is widespread. Institutional inheritance is posited as a possible cause of this divergence.

This article proposes the concept of an extractive regime to understand Indonesia's developmental trajectory from 1966 to 1998. The concept contributes to world-systems, globalization, and commodity-based approaches to understanding peripheral development. An extractive regime is defined by its reliance on extraction of multiple natural resources in the formation of an economic and political order that is also supported by global and regional forces. After elaborating the concept of an extractive regime, the article illustrates it through examination of Indonesia's developmental trajectory from its formation in the post-World War II era to its firm establishment during Suharto's New Order. Although a comprehensive study would necessitate attention to the full panoply of commodities, the study illustrates some of the workings of the extractive regime in the timber and fisheries sectors, which share spatial extensivity and other characteristics. The article concludes by considering the future of the extractive regime in Indonesia amid democratization and continued class domination and by offering suggestions for further application, specification, and extension of the extractive regime concept. [ABSTRACT FROM AUTHOR]

Donors and aid agencies are now looking to strategies of pro-poor economic growth to raise living standards in developing countries. I critically examine how particular conceptualisations of economy and economic development shape the broader context within which pro-poor growth approaches are implemented by governments and development agencies. While pro-poor growth may expand a national economy, surplus will be distributed in a community and among individuals according to culturally specific logics. To exemplify this point I discuss the community economy of Bomolo on the remote, rural island of Flores, Indonesia. The Ngadha people of Bomolo are identified by the Indonesian state, religious organisations and development agencies as lacking and in need of economic development. Yet in Bomolo, gambling, although illegal and antithetical to development, is fantastically popular, and large amounts of cash surplus are spent on this popular pastime. I argue for more attention to the issue of surplus – the outcome of pro-poor growth. In particular, I propose that surplus distribution is a crucial yet underdeveloped component of the growth equation. [ABSTRACT FROM AUTHOR]

What happens to firms during periods of deep economic crisis? Depending on the nature of the crisis, the general effects are well known. However, owing to data availability, there are relatively few detailed firm-level studies. With the aid of an unusually rich database, the present paper investigates the effects of Indonesia's 1997–1998 crisis on manufacturing establishments. Consistent with studies of other crisis episodes, foreign ownership and prior export orientation are found to be highly significant determinants of survival and recovery. The effects of firm size are ambiguous. The industry in which firms are located, in particular its factor proportions, is also found to be significant. [ABSTRACT FROM AUTHOR]

The successful industrialization and catch up of countries in the East Asian region gave rise to an important debate concerning the role played by technological learning and knowledge creation. This paper seeks to examine this issue for Indonesia, a second-tier newly industrializing country. It focuses on the relative importance of learning from imported inputs vis-à-vis other factors influencing productivity in manufacturing. The concept of learning is operationalized drawing on the literature on technology spillovers on the one hand, and the literature on catch up à la Abramovitz, on the other. Our results indicate that knowledge spillovers have become significant contributors to labor productivity growth after the liberalization of the Indonesian economy. [ABSTRACT FROM AUTHOR]

Indonesia was deeply affected by the 1997–1998 crisis, more so than its East Asian neighbors. Its economic contraction was deeper and more prolonged. It was the only one to experience a (temporary) loss of macroeconomic control. It also suffered “twin crises,” in the sense that its serious economic and financial problems were accompanied by regime collapse. Consequently, recovery was a slow and complex process, as new institutions had to be created, and old ones reformed under successive short-lived administrations. But this process is largely over. The directly elected president with a strong popular mandate is in power. The new institutional framework for economic policy-making is in place. Macroeconomic stability has been restored. Although growth has yet to return to pre-crisis levels, by 2004 per capita income and poverty incidence had recovered to levels prevailing in the mid-1990s, and in the circumstances economic recovery has arguably proceeded about as quickly as could reasonably have been expected. [ABSTRACT FROM AUTHOR]

It is well known that the economic crisis in Indonesia has caused the poverty rate to increase significantly. The present study finds, not only that the poverty rate increased significantly, but also that much of the increase was due to a large increase in the chronic poor category (i.e. the poor who have expected consumption below the poverty line and most likely will stay poor in the near future). Furthermore, the present study also finds that the proportion of households that have high vulnerability to poverty has more than doubled since the economic crisis. As a result, the proportion of the total vulnerable group (the current poor plus the high vulnerability group) has jumped from less than one-fifth of the population before the crisis to more than one-third after the crisis. [ABSTRACT FROM AUTHOR]

This paper surveys articles that have examined and sought to explain the distributional change experienced in Indonesia during the past 30 years of rapid economic development. The literature is critically evaluated, and methodological difficulties and current data limitations are highlighted and point the way for advances in future research. [ABSTRACT FROM AUTHOR]

This paper considers the difficulties inherent in countering the negative effects of globalisation in Indonesia through an enhanced recognition of place-based cultural communities, which are seen to offer an alternative and more progressive path towards development. Focusing on the local history of resource struggles involving Javanese migrants and local people in North Lampung, the paper examines the ways that different groups of migrants and local Lampung people have dealt with changing resource control mechanisms in the context of the local transmigration (Translok) programme and large-scale agro-industrial development in the region. Whilst elites have been able to develop their personal wealth by capitalising on political and economic uncertainty, poor people from both groups have had to contend with conflict and increasing livelihood vulnerability that, if anything, has been intensified through the reassertion of place-based cultures of resource control. In challenging populist narratives of resistance to transmigration that pit migrants against “indigenous” local people, the paper identifies the class-related ambivalences towards development and structures of authority that cut across community and locality in the Translok zone. [ABSTRACT FROM AUTHOR]

The resource-based but technologically advanced wood processing industry has as yet triggered little diversification and transformation of the traditional local economy of North Maluku, Indonesia. Pressures from the world market and a scarcity of raw materials are causing uncertainty for the future of the wood processing industry, which is likely to inhibit further local development. [ABSTRACT FROM AUTHOR]

Summarizes Indonesia's economic policies and growth performance since the 1960s and tries to find out if performance has varied systematically with policy. Outline of Indonesian economic development since the 1960s; Indonesia before the oil boom; Import substitution and the boom; Trade liberalization and deregulation since the mid-1980s; Crisis and collapse, 1997-98; Growth performance under different policy regimes.

Assessments to date of the consequences of implementing the Uruguay Round of multilateral trade negotiations have assumed medium-term rates of economic growth in East Asia that now seem unsustainable. This paper compares an earlier assessment with a new set of estimates involving an interruption to East Asian economic growth in the late 1990s, using the global, economy-wide GTAP model. Attention focuses on results for Indonesia, the worst-affected country in the region. An important consequence of the crisis is that Indonesia is likely to become more agrarian for a time than it otherwise would have been. The estimated benefits to Indonesia from embracing further unilateral reform, as a way of catching up, are contrasted with the alternative strategy of reneging on Uruguay Round commitments to liberalize trade. [ABSTRACT FROM AUTHOR]

Renewed interest by the Indonesian government in decentralization and cost-recovery practices has led to both real and illusory reforms, though the distinction between the two is often not clear. This is particularly true with respect to infrastructure planning and finance. Recently, the allocation criteria for capital grants to local governments have been substantially revised, nearly every year, to reflect long lasting concerns regarding differences in interregional development needs and resources. In addition, the level of funding for local government investment has risen dramatically to support increased local responsibility in planning. Most development spending does not pass through local budgets, however. In either case, the project planning process has remained firmly under the direction of the central government's technical ministries. Infrastructure investment thus tends to be segmented, not only by sector, but also by funding source. The rate at which these two factors balance off in current practice does not indicate a strong commitment to effective decentralization. The article suggests that greater regional government participation in the national planning process would be beneficial. To deal with the fragmented nature of sectoral planning is more problematic, as a more integrated approach would in the long term require either a new layer of bureaucracy or a substantial reorganization of the technical ministries. In the shorter term, a gradual shift toward general purpose grants would also generate regional development plans more consistent with the goals of decentralization while maintaining substantial central control and oversight. [ABSTRACT FROM AUTHOR]

Assesses the economic performance of the Djakarta region in Indonesia. Trends in population, labor force and employment; Role of the urban informal sector in absorbing labor.

Highlights the status of Indonesia's economy since 1966. Examination of the source of Indonesia's economic growth; Factors which adversely affect efficiency and growth; Reference to Indonesia's rejection of exchange controls and adherence to balanced budgets; What Indonesia's future growth depends on.

Discusses how development and distribution of improved modern rice varieties have affected land values in Lampung, Indonesia. Derivation of reduced-form land price determination function; Distribution and conditions of survey areas; Application of regression model; Land-price determination and paddy-yield functions.

The author comments on an article on the factors affecting the improvement in connectivity in Indonesia by H. Sandee in the same issue. He suggests that Sandee should include comparators to which Indonesia could base its progress. He claims that the policy recommendations of Sandee are not new and what the country needs is implementation rather than new policies. In his view, the slowdown in Indonesian economy could be attributed to the decline in trade instead of connectivity.

The article reviews the book "Indonesia's Economy Since Independence," by Thee Kian Wie.

The article reviews the book "Diagnosing the Indonesian Economy: Toward Inclusive and Green Growth," edited by H. Hill, M. E. Khan and J. Zhuang.

A lettet to the editor is presented in response to the article "Indonesia After the Asian Crisis," by H. Hill and T. Shiraishi that appear in this periodical's issue.

A lettet to the editor is presented in response to the article "Indonesia After the Asian Crisis," by H. Hill and T. Shiraishi that appear in this periodical's issue.

Presents information on the economic, political and theocratic challenges faced by Muslim-majority nations in Southeast Asia. Comparison on economic conditions in Malaysia and Indonesia; Background on the Association of Southeast Asian Nations; Details on racial and religious diversity in Southeast Asian countries.

It has been suggested that the economic crisis in Southeast Asia had a severe effect on small scale enterprises in the region. In this paper, I interpret the different consequences of this economic crisis ( krismon ) for small enterprises in the city of Makassar, Sulawesi, in the light of current globalisation debates. It is argued that for the majority of small enterprises, there have not been significant changes because of the relative isolation of Sulawesi within the Indonesian and global economies. However, for other small enterprises, there have been two significant changes indirectly linked to wider globalisation influences, because of the importance of conspicuous consumption amongst local cultural groups. In turn, this leads to an evaluation of both the strength of globalisation tendencies in the city, and the important influence of local cultural traits on the ways in which members of the local economy have responded to change. [ABSTRACT FROM AUTHOR]