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Indonesia and the Philippines have shared similar history, geological condition, and economic structure. Located in Southeast Asia, both countries have rich reserves of metallic minerals. They have also experienced changes of political system in the post-WWII era, from an authoritarian regime to a democracy, and have both pursued a neoliberal economic policy since the 1980s.​ However, the shared commonalities have not led to a similar development path of the mining industry in the two countries. Our research was aimed to reveal the key factors that caused the divergence of the mining development in Indonesia and the Philippines, from three main aspects: the evolution of the political system, the economic and mining policies adopted by the two governments, and the role of the mining regulations. The main question asked was that "Why did the similar political systems and economic policy fail to create a convergent path for mining development in the two neighbors?" The research has proved the validity of our hypothesis: the distinct political objectives and economic circumstances have impacted the implementation of the Neoliberal economic policy in the two countries. To a less extent, the scale of the mining industry in their respective economies and the different features of their respective colonial past were partially responsible as well. [ABSTRACT FROM AUTHOR]

AbstractThis study examines the dynamics of foreign investment policies in Indonesia during President Jokowi’s first term, juxtaposing his administration’s liberalization against the backdrop of economic nationalism and the intricacies of oligarchic control. Despite Jokowi’s pronounced ambition to attract foreign investment, as evidenced by his active participation in international forums and public statements advocating for investment, this study reveals a nuanced approach characterized by selective protectionism in the mining sector. This sector’s is attributed to the interplay between an oligarchic economic and patron-client relationships among Indonesian elites, underscores a stance towards foreign investment. The research delves into the trends of Indonesia’s foreign direct investment (FDI) from 2014 to 2019, highlighting a notable decrease in the mining sector at the beginning of Jokowi’s presidency. The paper investigates the capital structure and patron-client dynamics within the Indonesian oligarchy, offering the complex interplay between political power, economic interests, and social forces that influence policy-making. [ABSTRACT FROM AUTHOR]

Since 2015, sustainable development has become the leading goal of all development at the global level. Human development is a crucial aspect of sustainable development planning and strategies. This study analyzes the impact of public policies on the Human Development Index (HDI) in 34 Indonesian provinces from 2015-2020. The study examines budget allocations for education, health, general allocation funds, population, and employment factors. This study employs panel data regression models for different province groups, including all provinces, non-expansion provinces, and expansion provinces. The results indicate that the education budget and population have a positive effect on HDI, while the health budget does not affect HDI in any of the models. However, the general allocation of funds and labor force participation rate have different effects in different models. Therefore, it is suggested that education policies have had more impact than health policies on improving human capital in Indonesia. [ABSTRACT FROM AUTHOR]

Economic zones can be powerful drivers of economic growth in developing countries. However, less is known about their distributional impact on the local society. This paper provides empirical evidence from Indonesian provinces on the relationship between economic zones and within-province income inequality. We apply fixed-effects panel estimation to province-level data for the whole of Indonesia, which we then complement with separate studies on the opening of three economic zones in three provinces using the synthetic control method. The results suggest that the above relationship is positive overall. The estimated rise in income inequality after a zone opens is, however, relatively small on average and may be short-lived. Moreover, the average estimate masks large regional differences, which suggests that the inequality implications of economic zone policies depend on local conditions. One possible explanation for the rise in inequality is that the unskilled population benefits disproportionately less from the policy. [ABSTRACT FROM AUTHOR]

The article offers information on the increasing impact and frequency of natural disasters in Indonesia. Topics include the growing risk and impact of riverine and coastal flooding, the susceptibility of certain regions to drought conditions, and the significant risk posed by landslides due to high rainfall or earthquakes.

Macroprudential policy yields important benefits in terms of preventing and mitigating systemic risk, but it can also have an impact on economic growth, particularly on the left tail of the growth distribution. In this context, policymakers need to consider the effects of macroprudential policies on the entire growth distribution, and not only on average growth. The growth-at-risk (GaR) approach represents a useful framework for such an assessment. This paper describes the use of the GaR method and illustrates its implementation for assessing the impact of macroprudential policy on GaR in Indonesia. As a first step, I select 26 macrofinancial variables that are relevant for the Indonesian economy and build three partitions that capture financial conditions, macrofinancial vulnerabilities and other relevant factors. Results from quantile regressions have important policy implications, suggesting that an early tightening of macroprudential policy would reduce downside risks to Indonesia's gross domestic product (GDP) growth by increasing the resilience of the financial system. Results further show that a materialization of risk, stemming from either a loosening of financial conditions, an increase of macrofinancial vulnerabilities or a deterioration of the macroeconomic environment have important effects on Indonesia's GDP growth distribution and particularly on the left tail of the distribution, which represents the GaR. Under each of these scenarios, a tightening or loosening of the macroprudential stance, depending on the underlying vulnerabilities, yields high benefits in terms of improving Indonesia's GaR, which range from 0.06 and 0.14 percentage points. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Ekonomi dan Kebijakan Pembangunan 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.)

Tax is one of the main sources of income for the state. Funds for Indonesian Citizens (WNI) invested abroad are quite large. Through the tax amnesty policy, it is hoped that these funds can return to their homeland (repatriation funds). In 2021, Indonesia's economic growth will contract for two consecutive quarters and cause a recession. This causes a state budget deficit, thus encouraging the government to formulate appropriate fiscal policies, one of which is the proposed tax amnesty policy (Tax Amnesty) volume 2. Through the tax amnesty policy, it is hoped that these funds can return to their homeland (repatriation funds). This study aims to see how the influence before and after the tax amnesty policy is implemented. There is a novelty carried out in this study, namely the analysis used is linear regression by adding a dummy variable. The results of this study indicate that government spending, tax amnesty, tax revenue, and GDP have a positive and significant effect on economic growth. [ABSTRACT FROM AUTHOR]

The article titled "Comment on 'Fiscal Sustainability in Indonesia: Policies and Progress'" by M. Chatib Basri provides an interesting and useful analysis of Indonesia's fiscal sustainability. The author discusses various aspects of Indonesia's fiscal situation, including revenue and expenditure, as well as economic policies during the COVID-19 pandemic. The article highlights challenges such as low tax revenue, energy subsidies, and interest payments, and suggests areas for further research, such as the impact of fluctuations in energy and commodity prices on fiscal policy, ways to enhance tax revenue through administrative reform, and the role of fiscal policy in addressing climate change. Overall, the article provides valuable insights into Indonesia's fiscal challenges and potential solutions. [Extracted from the article]

Advances in technology have a significant impact on the development of today's industry. As is well known, the world is currently trying to develop the concept of the Industrial Revolution 5.0. Technological developments are directed at increasing the quality of mastery and utilization of technology in order to support the transformation of the national economy towards an economy based on competitive advantage. The role of technology is a major concern in developed countries in responding to the problems of nation building and increasing economic growth. In various developed countries, economic policies and technological policies are increasingly integrated and harmonized to increase national competitiveness. The higher the innovation competence in a country is evidenced by the large percentage of the number of patents produced. Innovation competence signifies the implementation of research and development (R&D) activities involving the interaction of elements of the innovation system (universities, R&D institutions, and industry) in the country concerned. Examining patent instruments, both primary and secondary aspects are inseparable from the type of innovation activity. In its nature, innovation is more incremental and various innovations are closely related in producing a product that has economic value, innovators prefer patents as a secondary tool. It is shown that patented instruments play a role in promoting diffusion activity. [ABSTRACT FROM AUTHOR]

The global COVID-19 pandemic has suppressed the economy and people's welfare, including in Indonesia and Central Java Province, as indicated by the weakening of the national economy by −2.06 percent and locally by −2.65 percent in 2020. Although the economy grew by 3.32 percent in 2021, societal welfare remains lower than in 2019, marked by an increase in unemployment and poverty throughout 2019–2021. Furthermore, the threat of COVID-19 including new variants of the virus continues to weigh on the economy, in 2022 and beyond. This study considered an industrial approach to production, based on inter-industrial linkages and policy simulations with input–output analysis. The objectives of this research are to analyze the impact of the COVID-19 pandemic on the economy of Central Java and to formulate an effective economic recovery policy for industry. The results show that the industries affected by the COVID-19 pandemic in Central Java can promote recovery of overall income in economic industry better than the leading industry and the industries with the highest output multipliers, expressed as a proportional increase in final demand for each industry. Meanwhile, the economic recovery strategy of increasing final demand in industries with high output multipliers results in a faster increase in economic output compared with increasing final demand in the affected industries or leading industries. [ABSTRACT FROM AUTHOR]

The COVID 19 pandemic in early March 2020 starting from Wuhan had a very large impact on the global economy and the Indonesian economy, the COVID 19 pandemic forced the government to establish a PPKM policy (Implementation of Restrictions on Community Activities) to suppress the spread of Covid 19 in Indonesia. Indonesia's State Gross Domestic Product fell in the second quarter 2021 amounting to -5.32% and also having an impact on the stock market in Indonesia at January 02 2020 the JCI was recorded at 6283 fell to 3937 in March 24 2020 (minus 36.77%) in March 2020. The results of this study using 22 of the stocks representing 11 sectors in the stock market in Indonesia obtained a maximum Sharpe ratio calculation of 31.57% with a weekly yield of 1.48% and a standard deviation of 4.39% and a maximum yield with a Sharpe ratio of 31.29% and a yield weekly yield of 1.37% and a standard deviation of 4.08%, the result of the minimum standard deviation with a Sharpe ratio of 5.92% with a weekly yield of 0.24% and a standard deviation of 2.51% and the results of Portfolio in the efficient frontier namely portfolio 6 with a Sharpe ratio of 30.94% and weekly yield of 1.3% and a standard deviation of 3.9%. For investors who want to optimize their portfolio, they can choose stocks with optimal Sharpe ratios that already pay attention to risk-adjusted return. [ABSTRACT FROM AUTHOR]

This study aims to analyze the impact of election uncertainty and economic policy uncertainty on stock market performance in Indonesia using an event study approach. Data obtained from the Indonesia Stock Exchange and the Central Bureau of Statistics during the 2010-2021 period. This study uses the OLS regression model and event study analysis to measure the impact of stock market performance on significant events related to election uncertainty and economic policies. The research results show that the uncertainty of the election and economic policies significantly affect the performance of the stock market in Indonesia. The impact is visible in the period before, during and after the significant events related to the uncertainty. In addition, the results of the analysis also show that elections and more stable economic policies tend to have a positive impact on stock market performance. In conclusion, this study shows that election uncertainty and economic policies have a significant impact on stock market performance in Indonesia. Therefore, it is important for investors to pay attention to political and economic conditions in making their investment decisions. [ABSTRACT FROM AUTHOR]

Fiscal policy and investment are two economic variables that can affect a country's economic performance. The focus of this research is trying to uncover the effect of fiscal and investment policies on economic performance by taking the case in the Sulawesi region in Indonesia. Government spending, general allocation funds and direct spending are used as a proxy for fiscal policy, to test its effect on economic growth and unemployment is used as a proxy for economic performance. A panel dynamic simultaneous equation model with annual time series from 2011 to 2021 was used to test this effect. It was found that general allocation funds, direct spending, and unemployment had a positive effect on economic growth. Investment has no effect on economic growth. The relationship between direct spending and unemployment has a positive impact on economic growth, while general allocation funds have a negative impact. Furthermore, general allocation funds and economic growth have a positive effect on unemployment, while direct spending and investment have no effect on unemployment. Specifically, general allocation funds and economic growth on unemployment are positive. [ABSTRACT FROM AUTHOR]

There is ample evidence that Islamic stock markets perform differently from conventional stock markets, particularly when economic policy uncertainty (EPU) or any other uncertainty such as geopolitical uncertainty is present. Considering this context, this paper examines the US EPU's cross-correlation with both conventional and Islamic stock markets from the perspective of multifractality. Daily stock market prices of five main countries are considered: US, Thailand, Indonesia, Pakistan, and India. Using the multifractal detrended cross-correlation analysis (MF-DCCA), we validate the existence of long-range cross-correlation between US EPU and all the stock markets considered, demonstrating that all pairs of US EPU have strong power law and multifractal characteristics. Furthermore, all pairs display varying levels of multifractal strength, with the US EPU and US conventional stock market exhibiting the strongest multifractal patterns. Additionally, a cross-correlation between US EPU and the different stock markets is found to be persistent. The results of this study are pertinent to the various market participants in both conventional and Islamic markets, particularly investors, who may be able to draw useful conclusions from them for purposes such as portfolio diversification. [ABSTRACT FROM AUTHOR]

Purpose: This paper estimates the possibility of a financial crisis in Indonesia using an early warning system (EWMS) model. Method: A quantitative EWMS model has been developed to detect a potential financial crisis in 2023 based on the econometric logistic probability model (Logit). Findings: Based on the model estimates, Indonesia is expected to enter a financial crisis without adequate macroeconomic policies in the next 12 to 24 months. In recent years, Indonesia has implemented prudent macroeconomic policies such as increasing the Bank Indonesia policy rate and sustaining the state budget to avoid the impact of a deep financial crisis. Implications: To avoid the potential for further financial crises, Indonesia must implement a wider range of crisis mitigation policies. Oiginality/value: Although many argue that financial crises are predictable, it has been demonstrated in the literature that little is known about how to prevent them. This paper contributes to providing empirical evidence to address these issues. [ABSTRACT FROM AUTHOR]

This paper aims to examine the recent international capital expansion of Indonesian business groups, which has received little attention by existing literatures. The article looks at the geo-political and economic conditions benefited their capital expansion across the region and how such internationalisation process has substantial impacts toward Indonesia's global economic outlook. This research applied a qualitative method of collecting and categorizing data by using the international political economy approach, specifically the Amsterdam School of International Political Economy and Murdoch School of Political Economy. The data time period is from 1999 to 2020. The research's empirical findings propose two arguments. First, the internationalisation of Indonesian conglomerate's capital should not merely be considered a product of corporate strategies. It is largely benefited by regional governance of ASEAN-led economic integration initiative. Second, while such international business expansion serves Indonesia's ambition to become Southeast Asia's economic hub, it also is reconfiguring the country's preferences regarding global economic policy. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Management & Agribusiness / Jurnal Manajemen & Agribisnis 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.)

This work aims to examine the relationship between global economic policy uncertainty (GEPU) and tourism activities in the fragile five (F5) countries, namely, Brazil, India, Indonesia, South Africa and Turkey using three-dimensional wavelet transforms context structures and the annual data during the period of 1997–2018. This innovative technique allows the decomposition of time-series at different time frequencies. In this work, the researchers used three-dimensional continuous wavelets based on Granger causality analysis to investigate the relationship between GEPU and tourism. The finding shows that the relationship generally changes over time, displaying low to high frequency cycles. Moreover, the timing and frequency change when GEPU co-moves with tourism. Accordingly, it can be recommended that the government increase and promote tourism demand and further provide and nurture the expansion of tourism supply. [ABSTRACT FROM AUTHOR]

At the end of 2019, an outbreak of COVID-19 occurred in China. Soon after, a global pandemic was declared. The virus entered Indonesia. The increase in COVID-19 cases led to reduced national economic growth, decreased state revenues, and increased state spending and financing. There were three significant impacts, namely on purchasing power, weakening investment, and declining export commodities. This changed the direction of Indonesia's financial policy. Quick steps were taken by the Government to help overcome the COVID-19 pandemic, namely by refocusing the budget to deal with the pandemic. This policy resulted in capital expenditure for projects and research that were not directly related to the COVID-19 response to be postponed. Moreover, some activities or projects that had been contracted had to be renegotiated to delay work, and employee spending had to be postponed as well. The purpose of this research was to analyze the impact of the changes in Government economic policies outlined in the Medium-Term Development Plan (RPJM) on the field of research and development, and to analyze potential research and development in the field of technology that can be carried out in dealing with the pandemic. This work was conducted using descriptive qualitative methods, and data were collected through interviews and direct observations. [ABSTRACT FROM AUTHOR]

This study aims to analyze the causality between tax revenue, state expenditure, inflation and economic growth in Indonesia during the 1973-2019 period to provide policy advice to the Indonesian government. This country was selected as an object with consideration that its economy has grown impressively and has been able to rise from the Asian economic crisis. A brief overview of the policies developed during the research period is presented to provide insight into the policies taken by the government. The use of quantitative methods through the Vector Error Correction Model and Granger causality test was carried out to provide an in-depth analysis. The result showed a positive long-term two-way causality relationship between tax revenues and state expenditures as well as tax revenues and economic growth. This indicates that the government's efforts to implement state expenditure have succeeded in increasing tax revenues. Conversely, an increase in tax revenue allows the government to make state expenditures, both in development and other activities, to improve people’s economy, leading to increased economic growth. The government must maintain an economic policy strategy during the COVID-19 pandemic to restore the national economy by considering potential sectors that are suitable for the climate, such as the agriculture or livestock sector. The result of tests on inflation show that this variable is caused by economic growth and does not apply the other way around, but this variable is has a negative effect on tax revenue, state expenditure and economic growth so its needs to be suppressed to ensure the stable economic growth. [ABSTRACT FROM AUTHOR]

Randomised Control Trials (RCT) are both widely used in development, reaching hundreds of millions through RCT informed policy, and highly regarded, receiving a Nobel Prize in Economics. Proponents, largely academic economists, position RCTs as a scientific and ideologically neutral way to get to the heart of 'what works' in development. However, this new and radical micro-experimental approach to poverty reduction has sat uneasily within the broader development sphere, including critical geographers. We contribute to this debate by empirically examining the practical manifestation of the methodology within 'PNPM Generasi' – an innovative Indonesian cash transfer program evaluated through the largest RCT to date. Drawing primarily on field interviews, our examination finds three departures from the gold standard proclamations of the RCT methodology in practice. First, we find that randomising aid delivery breached ethical guidelines and compromised the effectiveness of the program being studied, largely as a result of RCTs being run in secret from local communities and politicians. Second, we find applying the RCT methodology on the ground was technically complex and financially costly, requiring not only an excessive use of scarce program funds, but also undermining the validity of the evaluation results. Finally, we find RCT results were not widely used in practice. We demonstrate these findings are not restricted to our specific case, but rather, reflect systemic deficiencies with RCT evaluations. Our results suggest that RCTs may have value if applied judiciously, and as part of multi-pronged approaches, but we caution against their growing monopoly influence on poverty reduction. [ABSTRACT FROM AUTHOR]

From the mid-2010s, the Indonesian government began to strengthen its direct participation in the economy by investing significantly in and via state-owned enterprises. Since the ownership reorganisation of state enterprises has been slow in the past, the government continues to hold a large portfolio of companies in diverse industries. Fiscal space was created after reducing fuel subsidies, enabling the government to inject a large amount of capital into state enterprises. The government's control over the financial industry has also contributed to state enterprises' expansion. However, state capitalism looks quite different now than the period before the Asian economic crisis. Economic and political changes of the past two decades have resulted in various domestic forces keeping the government's aggressive mobilisation of state enterprises in check. Therefore, the recent state enterprise-centred development strategy in Indonesia can be described as "restrained state capitalism." [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the relationship between global economic policy uncertainty (GEPU) and tourism activities in the Fragile Five (F5) countries, namely, Brazil, India, Indonesia, South Africa, and Turkey. By using wavelet transform context structures and the annual data during the period of 1997–2016. The finding shows that the relationship is generally positive but changes over time, displaying low- to high-frequency cycles. Moreover, the timing and frequency change when GEPU co-moves with tourism. It can be recommended that the government maintain the national security and peace protocols. [ABSTRACT FROM AUTHOR]

Copyright of Bulletin of Indonesian Economic Studies is the property of Routledge 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.)

Global surveys indicate that massive disillusionment with economic globalisation, upheld by the liberal order, which is ignored by governments in European, Asian and Latin American countries, has paved the way for the ascent of nationalist forces. This trend is also visible in Indonesia. President Joko Widodo (Jokowi) has consolidated power against opponents who exploit nationalist, populist and religious causes. On the international front, Jakarta has been actively engaged within a variety of multilateral organisations where liberal institutionalist agendas are enforced. Therefore, it is worthwhile considering the influence of internal and external environments on Jokowi's economic policy which is getting increasingly nationalistic. This article argues that nationalist economic practices have emerged as the Jokowi government's response to domestic and international challenges which can have an impact on its perceived legitimacy. The discussion proceeds in five steps. To begin, this article presents a comparative perspective to understand the position of Indonesia in the developing international political economic context. This is followed by an overview of the definition of economic nationalism and its connections to domestic politics and foreign relations. The third section is about the Indonesian government's efforts to put economic nationalism into effect. The next two parts investigate how the inside and outside dynamics generate Jokowi's inward-looking policies. The conclusion emphasises what can be learnt from the Indonesian case. [ABSTRACT FROM AUTHOR]

While Indonesia has been experiencing relatively considerable and stable economic growth in the last decades, the country is prone to income disparity across regions due to uneven distribution of population, natural resources and the persistent impacts of centralized development imposed by the New Order regime. This study examines the economic growth convergence in East Java, Indonesia, from 2010 to 2019 and explores the influence of government expenditure on education, health, and capital sector on the economic growth convergence. By considering spatial dependence across regions, the result shows no strong evidence of regional income convergence in East Java. Also, this research claims the presence of spillover effect of government expenditure on education and capital sector on regional income growth. Notably, higher government expenditure of the education sector in one region could stimulate higher economic growth of its neighboring regions. Conversely, higher government expenditure on the capital sector in one region may lower the economic growth of its surrounding regions. [ABSTRACT FROM AUTHOR]

The relationship between the performance of Special Economic Zones (SEZs) and their governance is an under-researched topic. Despite their popularity as a development policy tool in developing countries, many SEZs fail to achieve their intended goals. A key factor determining the success of SEZs is their governance set-up. This article examines the designs and practices of governance in three SEZs in Indonesia—two tourism-oriented SEZs and one industry-oriented SEZ. Exploring the gap between the theoretical concept of “good governance” and the actual governance practices in SEZ development and operation, the article finds that current governance designs and practices neglect the importance of local contexts, which in turn results in suboptimal outcomes. We therefore suggest that the designs and practices for SEZ governance should be adjusted to reflect local socio-economic, cultural and political conditions. In other words, successful SEZ models should be based on a governance framework that needs to be both “good” and “proper”. [ABSTRACT FROM AUTHOR]

After three decades of rapid economic growth during the authoritarian Soeharto era, followed by the deep but relatively short‐lived Asian financial crisis, Indonesia transitioned rapidly to democratic and decentralized governance. We examine policy‐making processes and economic outcomes during the first two decades of this new era, leading up to the 2019 national elections where it was widely conjectured that Indonesia might follow the global trends of authoritarian rule and illiberalism. We conclude that, thus far, Indonesia has navigated the transition from authoritarian to democratic rule quite successfully. Compared to the Soeharto era, growth has been somewhat slower, inequality has risen, and policy reform is slower and generally incremental. But living standards continue to rise and all major political players have elected to operate within the new democratic parameters. Macroeconomic management has continued to be effective. Nevertheless, there are no grounds for complacency: there is a large outstanding reform agenda, and the economy is not providing enough economic opportunities for the better‐educated senior secondary and tertiary graduates entering the workforce. [ABSTRACT FROM AUTHOR]

This article examines the development of policies regarding the state-owned enterprises (SOE s) and public service agencies (PSA s) in Indonesia. In 2004, the government of Indonesia introduced PSA s—government agencies that were given large autonomy to manage their financial affairs. The rationale behind this autonomy is consistent with the New Public Management ideal: the creation of more market-oriented government institutions with the objective of increasing the efficiency and effectiveness of public service delivery. The PSA policy has increased state revenues significantly, yet the quality of services and accountability has not improved accordingly. A comparison with SOE s reveals that the restructuring of government agencies and SOE s took place before a supportive framework was set in place. We argue that to tackle informality and to safeguard the social functions of public services, the spearheads of efficiency and revenues in Indonesian bureaucratic reform policies require a strong foundation, consisting of regulatory and ideological components. [ABSTRACT FROM AUTHOR]

Copyright of Bulletin of Indonesian Economic Studies is the property of Routledge 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.)

History shows that trade and industrialization were the keys to economic development in East Asia and Southeast Asia. But situations change. The current rise in economic nationalism leads one to ask: Can Southeast Asian nations, including Indonesia, still use the old recipe of open trade and industrialization? Does economic cooperation still have a place? Against the backdrop of a changing trade environment and creeping protectionism under the Donald Trump US administration and amid lackluster global growth, the question that we must ask is, what can Indonesia and other Southeast Asian nations do given these conditions? This essay will specifically examine how the Asian Infrastructure Investment Bank (AIIB) can play a role in this situation. This essay argues that to overcome the anti‐globalization sentiment, it is necessary to create regional cooperation success stories from policies that are politically feasible and economically sound. There are several candidates for such success stories, including using the ASEAN Infrastructure Fund to develop ASEAN connectivity. The AIIB together with the ADB can play an important role here. The AIIB can play a significant role in supporting ASEAN and Asian cooperation with other financial institutions, namely the ADB. [ABSTRACT FROM AUTHOR]

• The amount of national, forest-related policy documents and the proportion of forest-related policies to overall policies increased in Indonesia from 1999 to 2016. • Forest-related policy documents in democratic Indonesia demonstrate a paradigm shift to forest protection and the restructuring of forest-related organizations and their funding streams. • Policy layering is the method by which forest-related policy changed in Indonesia. • Policy layering can provide the space to pass increasingly protective forest-related policy while permitting "business as usual" scenarios to persist. Despite pledges by Indonesian authorities to reduce emissions from deforestation and forest degradation, Indonesian forest cover loss consistently increased over the first 18 years of Indonesian democracy. To determine if forest-related policy demonstrates a paradigm shift toward forest protection, we identify and code a set of 218 national forest-related policy documents passed between 1999 and 2016. We determine whether a paradigmatic change in forest-related policy occurred and the mechanism by which change has or has not taken place through the interpretation of policy citation networks and statistical analysis of temporal relationships between forest-related policy content and change over time. We find that there was a significant increase in the amount of Indonesian forest-related policy from 1999 to 2016 and that it was largely comprised of content that promotes forest protection and redefines the structure and funding for forest-related organizations. These content changes primarily occurred through the process of policy layering, when new policy does not amend or repeal old policy and regulation. We discuss current trends in the regulation of forest territory and flow in Indonesia and find further evidence of policy layering. Thus, although Indonesian forest-related policy demonstrates a paradigm shift, the layering process through which new policy was created allows for interpretable flexibility, which enables continued forest cover loss. [ABSTRACT FROM AUTHOR]

The article discusses the impact of the community-driven development programs to the local leadership structures in Indonesia. It examines the eligibility of both the Direct Cash Assistance Program (BLT) and Program Keluarga Harapan (PKH) in the community. It also cites the integration of the poverty-ranking exercise in the communities.

This study investigates, firstly, the disparities of the human development index (HDI) for 35 districts/cities in Central Java Province, Indonesia, and, secondly, its convergence during 2010-2018 periods. The result shows that the HDI disparities between districts/cities are relatively low, as indicated by the index number ranging from 0.06935 in 2011 to 0.05818 in 2018. The HDI sigma convergence during 2010-2018 shows a downward convergence sigma indicated by the coefficient of variation decreases over the years at different speeds. However, the standard deviation over years documents an increase particularly in 2014. The absolute β convergence equation estimation indicates the growth of districts/cities which the HDI is relatively low growing faster than the districts/cities that the HDI is relatively high. It means that there is an absolute convergence. The result b=ln(-0.006029+1)/-8=-0.0007 means that districts with low HDI should grow at least by 0.07% to be able to improve the HDI growth. Estimation of Conditional β convergence HDI equation shows the initial regression coefficient of HDI -0.02710, which means convergence, indicating a region which initially had a relatively low HDI successfully develops HDI faster in the pursuit of a region with high HDI. [ABSTRACT FROM AUTHOR]

This study analyzes the influence of institutional ownership, dividend policy, and free cash flow on debt policy with profitability as moderating. The study population was 148 manufacturing sector companies listed on the Indonesia Stock Exchange in the 2014- 2016 period. The samples obtained were 41 companies with 123 units of analysis with purposive sampling method on predetermined criteria. Data were analyzed with SPSS 21 application with moderation regression analysis method. Institutional ownership and dividend policy have no significant effect on debt policy. Meanwhile, free cash flow has a significant positive effect on debt policy. In addition, profitability cannot moderate the significant influence of institutional ownership, dividend policy and free cash flow on debt policy is the result of research. The conclusion of this study is that companies need to improve the optimal debt policy to avoid financial difficulties in the future and the profitability ratio needs to be increased because increased debt use is determined by looking at the potential profitability of the company. [ABSTRACT FROM AUTHOR]

Purpose The law development, especially in the field of investment, is not only directed to achieve the vision of Indonesia 2030, but it is directed to make Indonesia a great nation, protect the potential and plurality of Indonesia and realize the welfare of the nation, both economically independent and having qualified human resources. Based on the description, the purpose of this paper is to examine and find forms of refinement in the investment law development of Indonesia in accordance with the global order.Design/method This paper is qualitative research. This paper examines and finds forms of refinement in the investment law development of Indonesia in accordance with the global order.Findings The refinement form of investment law development in Indonesia in accordance with the global order begins with Law Number 1 of 1967 on Foreign Investment (PMA) and Law Number 6 of 1968 concerning Domestic Investment (PMDN), which is then followed by the issuance of Presidential Decree Number 29 of 2004 concerning the Implementation of Investment in Foreign Capital Investment (PMA) and Domestic Investment (PMDN) through One Stop Service System. The reconstruction form of the capital investment law is by the issuance of Law Number 25 of 2007 regarding Investment which regulates the domestic investment and foreign investment. The authorized official to coordinate the implementation of investment in Indonesia is the Investment Coordinating Board (BKPM). The consideration of BKPM appointment as the only government agency that handles investment activities of PMA and PMDN is to increase the effectiveness in attracting investors to invest in Indonesia. Therefore, by one stop service, it is expected that the service to the investors will be faster than the previous implementation. One Stop Service System means that the implementation of investment consists of policies and planning of investment development, promotion and investment cooperation, approval services, licensing and investment facilities, control of investment implementation and management of investment information system. Approval services, licensing and investment facilities on PMA and PMDN shall be implemented by BKPM, based on the delegation of authority from the Minister/Head of Non-Department Institution which handle the relevant investment business fields through one stop service system.Originality/value This paper only focuses on the investment law development in Indonesia that has never been done before (originality). [ABSTRACT FROM AUTHOR]

The management of the Specific Allocation Fund (DAK) requires good governance. This argument seems logic based on the claim of some studies that there are problems in planning and implementation in DAK policy. Thus, the benefit of DAK on local economic development can be debatable. This study tries to examine the relationship between DAK and local economic development in 35 districts/cities of Central Java Province over the period 2010-2014. In addition, a case study on how DAK policy is planned and implemented at the district and provincial level is investigated. The econometric results show that DAK in education and health, trade infrastructure and supporting facilities, as well as infrastructure and transportation sector give a significant contribution on a rise in growth and a decrease in the number of poor people, respectively. However, qualitative analysis indicates that the good governance practices only take place on the planning and implementation aspect of DAK in infrastructure sector, though elite capture is still a major hindrance in its allocation process. [ABSTRACT FROM AUTHOR]

Indonesian administration under Joko Widodo introduces the pro-people foreign policy as a response to protect the migrant workers overseas. This study examines the concept of pro-people foreign policy orientation and how it is implemented. Taking the case of economic migrants in Malaysia, the study uses the qualitative method. The study shows that the current government applies principles of state existence to deal with the citizens overseas. Certain facilities for protection of migrant workers are set up, including digital platform and shelters. However, with a broad scale of problems, it is not easy for the government of Indonesia to address the issues of economic migrants overseas comprehensively. Based on the study, a preliminary model of foreign policy decision-making process is constructed in the formulation and implementation of pro-people foreign policy. [ABSTRACT FROM AUTHOR]