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Globalisation is more complex than ever. The effects of the global financial crisis and increased inequality have spurred anti-globalisation sentiment in many countries and encouraged the adoption of populist and inward-looking policies. This has led to some surprising results: Duterte, Brexit and Trump, to name a few. In Indonesia, the disappointment with globalisation has led to rising protectionism, a rejection of foreign interference in the name of nationalism, and economic policies dominated by calls for self-sufficiency. Meanwhile, human trafficking and the abuse of migrant workers show the dark side of globalisation. In this volume, leading experts explore key issues around globalisation, nationalism and sovereignty in Indonesia. Topics include the history of Indonesia’s engagement with the world, Indonesia’s stance on the South China Sea and the re-emergence of nationalism. The book also examines the impact of globalisation on poverty and inequality, labour markets and people, especially women.

This paper discusses rising economic nationalism in Indonesia. The findings suggest that protectionism has started to make its way back into the country since the early 2000s. Despite some reform initiatives, economic nationalism has amplified under the current administration, and might continue to do so in the near future. The political-economic factors that explain the re-emergence of protectionist measures under Joko Widodo’s presidency form the body of this study. Using the case studies of fuel and rice, it shows that while economic nationalism might prove to be politically rewarding, its detrimental impact on the poor cannot be ignored. It is therefore in Indonesia’s best interest to resist the continuing push for protectionist policies.

In 1990, 30 per cent of Indonesian population had no access to improved drinking water source. Almost 65 per cent lacked access to improved sanitation—and almost 40 per cent defecate in the open. One of the Millennium Development Goals’ objectives is to halve these numbers of disadvantaged by 2015. We explore the recent progress using World Health Organization/United Nations Children Fund report and the Indonesia’s Socio- Economic Survey. We conclude that the country still face a great challenge to meet the targets, especially on sanitation. We next illustrate the importance of these facilities by estimating their impact on diarrhoea incidence. We find that the relative importance of sanitation is higher than that of water. A household with ‘unimproved’ drinking water source is about 12 per cent more likely to have diarrhoea than that otherwise. Lacking of improved sanitation, on the other hand, makes the household member about 23–27 per cent more likely to suffer from it.

In Indonesia, there is widespread awareness of climate change and environmental problems, at least in academia, policy-making, civil society organizations, and NGOs. However, the ways climate change and the environment affect poverty are not so well understood. Indonesia, like many other countries, is preoccupied with achieving economic growth in a business-as-usual manner. The government emphasizes social protection rather than reducing vulnerabilities and improving livelihoods of the poor through a green economy. In this essay, we review the current discussion on the economics of environmental protection in Indonesia, especially with regards to climate change, and propose ways to fill in certain gaps between discourse and policy. We also discuss the poverty situation of Indonesia and highlight its relationship with the environment. Finally, we discuss the policy possibility of using the environment-climate connection as a way to accelerate poverty reduction. In particular, we argue that policies that take into account climate change and its effect on poverty should be applied at three different levels: micro, macro (national), and global (international).

Turbulence has been the hallmark of the course of Indonesian economic growth. Indonesia was dubbed a "chronic drop-out in economic performance in 1968, but it then immediately embarked on a growth spurt. Just as accolades to Indonesia's economic pragmatism and economic orthodoxy were reaching a new height, Indonesia's economy shattered during the Asian financial crisis of 199799. Indonesia has once again risen phoenix-like from that disaster, and the bounce back has been resilient in the face of the 2008 global financial crisis. Despite the commendable progress, however, its growth seems to be hindered. Indonesia must now tackle the two most important constraints to its continued high growth: logistics and infrastructure.

There is little doubt that protecting property rights, reducing corruption, and improving public services are desirable long-term objectives for all countries. But are such institutional prescriptions sufficient, or even necessary, to achieve investment and growth? By exploring the political economy of the cities of Solo and Manado in Indonesia, this article shows that relationship-based, rather than rule-based, cooperation between government leaders and local firms can provide an effective mechanism to boost investment and improve local investment climates. Our findings challenge the conventional wisdom that impartial rule-based economic governance is a precondition for investment, although it suggests that the creation of such institutions may make growth more sustainable and equitable in the medium and long term.

We explore the ups and downs of trade protectionism in Indonesia since the Asian financial crisis of 1997-98. The key constraints to unilateral trade reform include exchange rate factors, the political economy of consumer-producer behaviour, institutional complexity and global pressures. We conclude that trade reform is likely to face difficulties, with protectionism on the rise again, but that, during the temporary halt in the World Trade Organization's Doha Round of trade negotiations, Indonesia may be able to use regional and international engagement to counterbalance rising protectionism.

Recent political developments are slowing reforms. The Corruption Eradication Commission (KPK) and the finance ministry find themselves entrapped in legal inquiries and political wrangling that seem intended to weaken their reforming zeal. KPK's effectiveness has been undermined by legislative changes and the arrests of three of its commissioners. Meanwhile, the costly bail-out of a small bank has provided an opportunity for attacks on leading reformers - Vice President Boediono and the Minister of Finance, Sri Mulyani Indrawati. The president's diffident stance in both instances has played into the hands of the opposition and, although key reformers are likely to remain in office, the political imbroglio has nonetheless eroded confidence in the government. Year-on-year GDP growth recovered strongly to 5.4% in the fourth quarter of 2009. Government spending has been the key driver, while household spending slowed and investment remained low. Both exports and imports have returned to modest growth. Although 2009 ended with low inflation, Bank Indonesia (BI) has set its target inflation rate for 2010 at double the rate it achieved in November. BI is likely to bow to populist demands to lower nominal interest rates rather than raising them somewhat to prevent inflation accelerating, even though its real policy rate has been consistent with significant acceleration of GDP growth. The 2009 budget outcomes confirm that the fiscal stimulus in response to the global financial crisis has been less than hoped for. As for 2010, high world oil prices will imply huge subsidies, given that the government is unwilling to increase domestic fuel and electricity prices commensurately. The president announced that virtually all the government's 'first 100 days' program targets have been met. However, half of the 'action plans' amounted to nothing more than issuing or announcing new regulations, plans, blueprints, guidelines, recommendations or policies, or simply preparing drafts of t

Much of the existing investment climate literature promotes a rule-based 'good governance'approach, in which less advanced economies are advised to adopt orthodox, OECD-type practices in order to facilitate higher investment and growth. Although credible

This study estimates the economic benefits of remediation in the Buffalo River, NY Area of Concern (AOC) using two distinct empirical methods. One method analyzes the effects of proximity to the AOC on prices in the residential property market. The second uses a choice survey of recent home purchasers concerning the characteristics of homes and the river. After controlling for numerous structural, community, and spatial effects, the market analysis shows that single-family residential property prices south of the river are depressed due to their proximity to the AOC by $118 million (5.4% of total market value). The impacts are greater for properties closer to the AOC. Prices to the north of the AOC do not appear to be affected. Recovery of $118 million in property value losses could produce approximately $4.7 million/year in new property tax revenues. Considering only the area for which the market study shows price discounts, the survey-based estimates reveal a willingness to pay (WTP) for full cleanup of the AOC of approximately $250 million (14% of median-based market value). The reasons for discrepancies between the results of the two methods is a matter for further research.

This study estimates the economic benefits of remediation in the Sheboygan River, WI Area of Concern (AOC) using two distinct empirical methods. The methodology parallels that described by Braden et al. (2008). The results are mixed. Using hedonic analysis of property sales, for owner-occupied homes within a 5-mile radius of the Sheboygan River AOC, the overall estimated loss of value is $158 million (8% of market value). Of this total, only $49 million in losses for homes closest to the upper river segment has strong statistical support. The impacts are greatest proportionally for properties closest to the AOC. A survey-based method yields a mean estimate of $218 million (10% of property value) in willingness to pay for full cleanup of the AOC. If remediation were to induce recovery of property values, then the local communities could benefit through increased property tax revenues.

In contingent valuation studies, failing to accommodate populations with limited language skills might yield biased estimates. In the United States, there are many residents primarily fluent in Spanish. This study uses conditional logit models applied to