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We re-examine the presence of rational speculative bubbles in the Singaporean and Indonesian stock markets in light of contradictory results in the literature. We employ a mix of descriptive statistics, explosiveness tests and duration dependence tests for an expanded dataset from 1970 to 2013 that covers at least two suspected bubble episodes - the 1997 Asian Financial Crisis (AFC) and the Global Financial Crisis (GFC). We find bubble footprints in Singapore and Indonesia using descriptive statistics and explosiveness tests. However, we find no evidence of rational bubbles in Singapore using the duration dependence test. On the other hand, in Indonesia we find evidence of rational bubbles in weekly but not in monthly data. Our results indicate that the duration dependence test could be sensitive to data frequency suggesting that the duration dependence test results are not always conclusive and that it should be used in conjunction with other tests. [ABSTRACT FROM AUTHOR]

Agriculture sector has an important contribution to food security in Indonesia, but it also huge contribution to the number of poverty, especially in rural area. Studies using a global model might not be sufficient to pinpoint the factors having most impact on poverty due to spatial differences. Therefore, a Geographically Weighted Regression (GWR) was used to analyze the factors influencing the poverty among food crops famers. Jambi Province is selected because have high number of poverty in rural area and the lowest farmer exchange term in Indonesia. The GWR was better than the global model, based on high value of R2, lowers AIC and MSE and Leung test. Location in upland area and road system had more influence to the poverty in the western-southern. Rainfall was significantly influence in eastern. The effect of each factor, however, was not generic, since the parameter estimate might have a positive or negative value. [ABSTRACT FROM AUTHOR]

The current general wisdom regarding fiscal policy in response to fluctuations in economic cycles is to adopt countercyclical strategies: contractive during a boom to avoid overheating the economy and expansive during a recession to stimulate economic activity. This paper attempts to investigate the practical behavior of fiscal policy in Indonesia in response to economic cycles to establish whether it follows general fiscal wisdom (countercyclical) or amplifies the cycle (procyclical). An error correction model (ECM) and an alternative model to deal with the possible endogeneity problem are utilized. This paper shows that fiscal policy in Indonesia tends to be procyclical. Observations of some other ASEAN countries, namely Malaysia, the Philippines, Singapore and Thailand, indicate that Singapore could be the only country in ASEAN that is able to implement a countercyclical fiscal policy. [ABSTRACT FROM AUTHOR]

As a large archipelago with significant geographical variation and economic diversity, Indonesia requires detailed regional information when subjected to economic modelling. While such information is available, it however has not been integrated and harmonised into a comprehensive input–output database, thus preventing economic, social, and environmental modelling for investigating sub-national regional policy questions. We present the newIndoLab, a collaborative research platform for Indonesia, enabling input–output modelling of economic, social, and environmental issues in a cloud-computing environment. Within the IndoLab researchers are for the first time able to generate a time series of regionally and sectorally detailed and comprehensive, sub-national multi-region input–output (MRIO) tables for Indonesia. By integrating a multitude of economic, social, and environmental data into a single standardised processing pipeline and harmonised data repository, the IndoLab is able to generate MRIO tables capturing up to 1148 sectors, and 495 cities and regencies. Researchers can freely choose from this detail to construct tables with customised classifications that suit their own research questions. First results from the IndoLab clearly demonstrate the unique characteristics of regions in terms of their sectors’ employment intensity. Thus, the IndoLab has great potential for investigating policy questions that cannot be comprehensively addressed using a single national database. [ABSTRACT FROM PUBLISHER]

Purpose The purpose of this paper is to investigate the impact of the Indonesia Shariah-compliant Stock Index (ISSI) on the performance of included shares. In essence, the authors ask whether the establishment of the ISSI provides abnormal returns for the firms that are not included in the Jakarta Index.Design/methodology/approach The authors use an event study methodology to estimate cumulative abnormal returns in the days surrounding the event to examine the relationship between Shariah-compliant investments and stock returns. The estimation window of 90 trading days prior to the event (−30) to day 60 after (+60) is adopted. They also use a range of investment performance measures to provide new evidence on whether faith-based ethical investments generate superior performance compared to their unscreened benchmarks.Findings Using daily returns, the Indonesia ISSI and panel data model, the findings show that the inclusion of the ISSI has a positive impact on the financial performance of the included shares during the 41-day event window. The evidence also suggests that the ethical investment has a significant influence on the performance of stock market returns.Research limitations/implications This study offers insights to policymakers, investors and fund managers interested in the indices’ performance. A key conclusion that could be derived by bodies that regulate Islamic products and services is that investors are not only concerned about what is profitable but also what makes their investments ethical.Originality/value Although the global growth of the Islamic capital market products and services has been tremendous in recent years, very few studies focus on the Indonesian market and indeed, none of them devote sufficient attention to Shariah-compliant investments and stock returns. [ABSTRACT FROM AUTHOR]

This paper investigates how the creative economy discourse is interpreted and implemented in the context of Indonesia as a developing country. Our main conclusion is that the discourse is interpreted differently across localities. Bandung appears to be the only locality whose interpretation aligns with the general understanding of a creative economy that emphasises knowledge creation and innovation. This was made possible by the strong support from academia and communities who wanted to experiment with this policy idea. Our study also provides an insight into a creative economy developing not only as a discourse, but also as a workable framework for development policies, in this city. Conversely, other cities seem to pragmatically use the policy idea without considering the local context in a rebranding exercise in order to drive economic development, whereby traditional cultural industries are relabelled as creative despite performing hardly any innovation activities. Despite this, Bandung illustrates that there are possibilities for a developing country such as Indonesia to adopt the vision of a creative economy by reshaping local institutions to support successful experimentation with this new idea. [ABSTRACT FROM AUTHOR]

According to TechinAsia report in 2015, more than 72 million Indonesians are listed as active internet users. About 18% and 11% conduct research on the web via desktop and mobile device respectively before buying online. As much as 80% from those who did research on the internet make a real purchase. This indicates that people who does online research tend to buy online afterward. Facebook has 14% share of those internet users and unsurprisingly online shop owners use it to advertise their products online. Unlike conventional platforms, advertising on Facebook has no flat rate, but it depends on engagement rate, which measures how much the ads are liked by its target audiences. More engagement will be granted with low advertising cost. The advertisers need to know how to create ads which have more engagement rate potential and lead to minimal cost and high conversion. This research investigated performance measurement of media types used on Facebook advertising platforms such as photos and videos. The study used three control variables: gender, age group, and product type as the interest group. The findings of this study showed that Indonesians have higher engagement rate for ads in which videos are used instead of images. [ABSTRACT FROM AUTHOR]

This paper discusses the empirical results of wage-profit rate schedules between 2000 and 2008 in Indonesia using input-output analysis. Using a mathematical approach, this paper has four main conclusions. First, there is a decrease in both wage share and profit margin in Indonesia. The decrease may be caused by the increase in relative prices of other inputs such as raw materials that generate inefficiency. Second, there is no proof of reverse capital deepening during the observed period and there is an indication that the capital was getting cheaper relative to other inputs during the period. Third, the capital-labor ratio tends to increase over time. Fourth, there is no proof of switching point and reswitching in technology during the period. However, this paper only provides us with an empirical result during the observed period. It is always possible to have a switching point or reswitching in the economy over a longer period. [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]

This study examines the role of fisherwomen in fishery resource management in Talaud Island District, North Sulawesi District, Indonesia. Several focus group discussions, interviews and questionnaires with fisherwomen and fishermen community as well as relevant stakeholders in Talaud Islands were conducted to collect data about the issue. The results of the research show that most of the fisherwomen in the particular area earn a living as collecting mussels, making and repairing nets, trading fish, and processing fish products. Trading and processing are the sub-sectors where women’s roles are over-represented which are low-grade unskilled jobs. However, the paper argues that the contribution of women in the fisheries sector has not been adequately reflected in policies and not yet transformed into women’s economic empowerment. The paper concludes that women’s roles and contribution to fishery family welfare and national development must be recognized by relevant government agencies and accomodated in national and local policies. These roles also should be transformed to women’s economic empowerment. [ABSTRACT FROM PUBLISHER]

Economic globalisation has transformed the politics of realising the right to food. This article aims to discuss the extent to which competing as well as conjoined interests in agricultural modernisation reconfigure the right to food as actors, norms and practices change. Drawing upon the concept of interlegality, which considers dynamic perspectives of plural legal orders, the discussion focuses on, first, existing norms linked to the wider understanding of the right to food and, second, the interplay of interests supported by the state, corporations and civil society organisations. The Indonesian agricultural modernisation project in Papua is used as a case study. [ABSTRACT FROM PUBLISHER]

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.

The article explores Indonesia under the administration of President Joko Widodo, who was able to grow more effective at maneuvering through political and economic interests in the country. Topics discussed include achievements of Widodo after completing his second year in office including freeing himself from Megawati Sukarnoputri of the Indonesian Democratic Party-Struggle, the expansion of Widodo's governing coalition and weakening of parliamentary opposition, and its impact on the economy.

One of the regencies in Gorontalo Province, Indonesia, Bone Bolango is an area in which landslides occur frequently. This study was at identifying the mechanism and characteristics of landslides in Bone Bolango Regency. This study is important to minimize hazards caused by this disaster. Data were obtained from the results of site survey, surface geological survey and geotechnical investigation. Cohesion during the dry season ranged between 0-15kPa, and the angle of internal friction ranged between 30°-44°. The topography of this area indicates a steep slope (>40°), with weathered rock and discontinuity. These internal factors made the slopes prone to landslide. Meanwhile, external factors that trigger landslides are high precipitation (>100mm), the absence of vegetation covering the slopes, as well as land use on the slopes. In general, the types of the landslide in the study area were debris flows, rotational slides, and rock falls. At the period of high precipitation, the rate of infiltration of rainwater into the soil was slower than the rate of the increase in the volume of rainwater deposited and flowing into the slope surface, resulting in the debris flow. Slope-forming material became soft due to the rise of groundwater levels. This caused a decrease in shear strength and pore water pressure that turned into positive. In the rock slope, rainwater filled the crack of slope discontinuity area so that rock got loose and fell freely. Therefore, a further research is necessary to conduct in order to determine the most accurate and efficient method for slope stability. [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.)

In 2015, the government of Indonesia launched the development of The 35,000 MW of power capacity. This project is required to stimulate economic growth and production in Indonesia. However, the project requires a huge financial investment, estimated to be about US$ 90.90 billion. Considering this situation, the construction of effective and efficient power plants based on energy potential in Indonesia is necessary. This research proposes alternative power plant development based on multiple linear regression and peak load analysis approaches. The results of this research show that 33% of the total power plants will be constructed in Java-Bali and the remaining 67% will be spread across Indonesia. Total energy demand in Indonesia is estimated at about 47.345 MW, with a total investment cost of about 1,813.32 trillion rupiah and operation and maintenance costs of about 289.13 trillion rupiahs per year. The research presented here also shows the use of renewable energy power plants increasing from 27% to 34% compared to the existing calculation. [ABSTRACT FROM AUTHOR]

Financial inclusion is a means to promote financial sector especially for easy banking services and financial access for people. Increasing living standard is one of the expected results when financial inclusion runs well. Financial inclusion program in Indonesia is expected to give significant impact to unprevillege people, such as: people with low income, fringe, minority, or having no legal identity and women and the young. This paper focuses on how financial inclusion can give a significant impact especially to woman in SME in Indonesia and how financial inclusion program can increase and strengthen Indonesian economy as a whole. Research used quantitative-descriptive method; comparative analysis was done based on secondary data from various sources. This research concludes that financial inclusion shall be conducted in Indonesia as a whole and may affect the SMEs significantly, especially women.

The demand for urban river rehabilitation can be measured through stated preference surveys such as choice experiments, providing information on the welfare estimates of a particular approach. We deploy such a technique in the context of plans to rehabilitate a major river in Jakarta, Indonesia. The current plan focuses on widening and canalizing the downstream segment of the river within Jakarta’s administrative boundary. We hypothesize that residents would demand (and thus be willing to pay for) additional components of an ecological rehabilitation program in the form of riverside park space and upstream forest conservation outside of Jakarta’s jurisdiction. We develop a spatially-explicit discrete choice experiment in which households register their preferences for channel widening, park space, forest conservation, and a monthly fee to fund the rehabilitation. Using mixed logit models we find significant and substantial demand for both park space and forest conservation, with a lower bound on the total willingness to pay (WTP) of greater than US $4 million per year for park space and nearly US $6 million per year to support reforestation in the upper catchment. These estimates are based on households within the catchment, but we find that demand did not seem to decay with distance so the upper bound on total WTP could be substantially higher. We also find that household income level has a strong effect on marginal WTP for forest conservation, minimal effect on marginal WTP for park space, and that location along the river influenced WTP for park space and channel widening. This provides further evidence that there is substantial demand for river rehabilitation in developing world cities, and that choice experiments can provide information relevant to land use planning. [ABSTRACT FROM AUTHOR]

The article examines the economic mobility of Indonesians during the colonial era and postcolonial 20th century. The relationship between stature and income is examined as well as the factors that affected Indonesia's economic evolution. Also tackled are the impact of political and social structures on economic mobility, the factors of migration, shrinkage in humans' height at old age, and the effect of occupation on economic position.

Although the literature on emission inequality is abundant, this study differentiates itself by focusing on emission inequality at the household-level. We further separate measures on emission inequality based on household characteristics as well as decompose it into sources of emission. The results show that as per capita expenditure increases, within group emission inequality tends to decline until the middle-income group but then further increase in expenditure worsens emission inequality. We also find that expenditure inequality is the predominant driver of emission inequality although recent increases in expenditure inequality have not lead to a commensurate increase in emission inequality. The decomposition of inequality based on emission sources suggests that energy-transportation predominantly contributes of the overall emission inequality; reducing the emission intensity of these sources would serve to lower emission inequality substantially. [ABSTRACT FROM AUTHOR]

It has been argued that the growth potential of industry clusters in developing countries is dependent on joint action to release external economy effects that otherwise remain latent. In this paper we report on the progress and impacts of a programme in Central Java to develop the capacity for joint action in industry clusters via economic forums in local government jurisdictions. We focus on the emerging relationships between industry clusters and their respective economic forums in four local government jurisdictions. Despite progress, the findings reveal the difficulties of developing new institutions to support joint action. These difficulties follow from the limits presented by the private sector dynamics underlying industry clusters and from variations in local government organisation, resourcing and understandings of the remit of these new institutions. [ABSTRACT FROM AUTHOR]

This paper is aimed to examine co-movements and heterogeneity in inflation dynamics of different regions across Indonesian provinces to improve the understanding of the nature of inflation characteristics in the context of the Indonesian monetary union. Having employed a factor analysis approach, our model is able to decompose regional inflation dynamics that are explained by country wide and district (zone) specific factors as well as an idiosyncratic local factors. An interesting finding here is that common (national) factors are almost equally important together with local (regional) factors in explaining sources of inflation differentials across Indonesian economies. The second objective of this study is to investigate determinant factors of regional inflation differentials, and our findings suggest that the differences are mainly related to their structural economic characteristics namely economic structures, market competition, degree of openness, cost of input factors, and local specific factors. Given the fact that the significances of those local variables in explaining regional inflation variations may assert that economic integration within Indonesia is currently still difficult, considering that its geography are vastly distributed throughout regions, while its infrastructure and connectivity conditions are limited. The final objective of this study is to examine long run convergence of regional inflations, and in turn our model is able to find and show the existence of convergences. Overall, this paper illuminates the importance of disaggregate regional inflation information, as summarised by the local factors, in explaining aggregate national inflation rates, even after conditioning on macroeconomic variables. Accordingly, the relevant policy actions and coordinations based on subnational and local level play a vital role in enhancing the effectiveness of the monetary policy conducts in Indonesia that is primarily directed to targeting inflation. [ABSTRACT FROM AUTHOR]

This study aims to estimate the technical efficiency and technology gap in Indonesian rice farming, and analyze its determinants. An analysis of DEA Metafrontier and Tobit regression was applied respectively for the first and second objective. The data is based on farm level data of fifteen rice-producing provinces in Indonesia. The result showed that the technical efficiency based on metafrontier estimation is slightly lower than the technical efficiency based on regional frontier estimation, indicating the existence of technology gap which is quite small. Net income, education, and irrigated rice field found related to the technical efficiency and technology gap. Meanwhile, the effect of other factors on the technical efficiency and technology gap is ambiguous. Hence, this study suggests that these three factors should be considered in the policy to increase technical efficiency and to reduce the technology gap in Indonesian rice farming. [ABSTRACT FROM AUTHOR]

ICT has been recently developed into a digital sustainable collaborative networking (DCN) platform, and it is expected to be capable of demonstrating the building of social and economic welfare, particularly in crafting innovations to facilitate marginal society. This research attempts to develop an innovative platform of an empirical ICT application a branchless banking form based on ICT Model. The application of Branchless banking model is expected to address the poverty problem which is significantly high in Indonesia. Indonesia is known for it's heterogeneous values in terms of its areas, ethics, traditions, customs, communities, and local wisdom. The newly introduced application of a mobile payment system is parallel to the vision, and mission upheld by the government. Currently, most literature and practices are just partial. The community model based on Islamic microfinance and Cooperatives is neglected. Therefore, this research aims to design branchless banking in terms of financial inclusion involving Islamic microfinance and Cooperatives. Furthermore, this paper also attempts to test to what extent the proposed model is viable in the current system. This study employs a qualitative approach by conducting an interview with the stakeholders and a deductive method is used to explore and design the proposed model. The finding exhibit that branchless banking based on an Islamic microfinance and a Cooperative model is more flexible and easily acceptable while crafting a deal with Indonesian. In addition, the proposed model is viable in the current system. By implementing this model, the economy can be strengthened toward national unity and a welfare state. [ABSTRACT FROM AUTHOR]

We use unique data from over 600 Indonesian communities on what individuals know about the poverty status of others to study how network structure influences information aggregation. We develop a model of semi-Bayesian learning on networks, which we structurally estimate using within-village data. The model generates qualitative predictions about how cross-village patterns of learning relate to network structure, which we show are borne out in the data. We apply our findings to a community-based targeting program, where citizens chose households to receive aid, and show that the networks that the model predicts to be more diffusive differentially benefit from community targeting. (JEL D14, D83, D85, I32, O12, Z13) [ABSTRACT FROM AUTHOR]

In the last four decades, Indonesia's economy demonstrated remarkable progress. After the devastating currency crises in 1998-99, growth recovered. With the help of commodity prices, Indonesia has become one of the largest middle-income countries in the world. All of this happened amidst the backdrop of delicate political transformations. It is far from clear, however, whether Indonesia can continue to follow the successful path of other industrialized countries in East Asia.We lay out key issues that are likely to hinder Indonesia's transformation to a high-income country and discuss constraints in policymaking that may require calibrating reform prescription with the new political landscape. [ABSTRACT FROM AUTHOR]

Amongst the 15 creative industry subsectors developed in Indonesia, then in 2013 the creative craft industry is the third-largest contributor to GDP. Eastern Priangan Region is one of area of concern for the government. It is comprised of Ciamis, Tasikmalaya, and Garut. In Kabupaten Garut, leatherbased creative industries is the creative industries which have an important role. On the performance, business development goes hand-in-hand with business growth. Growth, which quantified through increase in company value, requires the company to be able to gain profit. This is possible if the company is able to manage its business. This study aims to assess the growth on leather-based creative industries in Garut, by measuring the rate of growth and identifying the growth process. This research is a descriptive study, with quantitative and qualitative approaches. Survey method using simple random technique sampling is used, with sample size of 43 of the total population of 471 leather-based creative industry SMEs. Venture growth rate were calculated using the Compound Annual Growth Rate (CAGR) formula. Venture size were measured from the net assets. To eliminate time value of money's influence, then net assets were converted into present value first, using compounding factor based on average interest rate during each enterprises venture time period. Entrepreneurial process stage of companies are conducted by qualitative descriptive identification and comparison of the survey data with the identifier of entrepreneurship in the startup phase or growth phase, with the help of cross-tabulation. Research shows that the average age of entrepreneurs was 39 years old, and the average venture age was 12 years, with 85% male. Employee ranged 2 - 300 persons. The main product is jackets, with addition of shoes, sandal, bag, wallet, belt, raw hide, gloves. 35 of 43 ventures are self-financed. Yearly sales ranged between IDR 100,000,000 - IDR 3,600,000,000, with average profit of 20%. The average initial assets were IDR 96,962,790 with range of IDR 100.000 - 750.000.000. Existing net assets ranged between IDR 42,000,000 - IDR 4,000,000,000. The average growth rate was 11.55% with range -0.04% to 29.64%. Business process done, were business ideation (9.7 months avg.), start-up (2.4 years avg.), growth (9.24 years avg.) since the start. To be able to grow more rapidly, it is necessary to overcome the problems faced by entrepreneurs. The dominant problems faced are the limitations of skilled employees, raw materials both in quantity and quality, capital, and low leather processing technology. [ABSTRACT FROM AUTHOR]

Classical international trade theory predicts if a country relatively rich in labor compared to capital will tend to specialize in labor-intensive industries to be exchanged with capital-intensive products produced by developed countries in the international market. This comparative advantage then regarded as a static character. The developments of new theory do relaxation on assumption of international capital flows, which in turn allows the changes in the industrial structure of a country. Countries that have a comparative advantage in labor-intensive industries can move into a country structured capital-intensive industry if the composition of the products produced in that country are more capital intensive, thus attract more international capital flows. Therefore, the nature of the comparative advantages of a country should be more dynamic, rather than static. As a country that has large populations, Indonesia will tends to specialize in products that are labor intensive. Indonesian industrial classification shows if the compositions of Indonesia's industries are laborintensive. There are about fifteen industries with high comparative advantage and all of them are labor intensive industries. Meanwhile all capital intensive industries are included in low comparative advantage products. However, some of capital intensive products indicate tend to have high comparative advantage. It shows if Indonesian industry specialization is unstable. This paper analyzes closer on Indonesian export products to determine whether there is a change in Indonesian industrial structure. Trend of the median value, standard deviation and skewness coefficient comparative advantage of Indonesia's export products use to see the RSCA distribution. Some common patterns that appear from the chart are the difference between the comparative advantage of Indonesia's industrial products tend to decline over time. If we observed specifically each industry, both labor-intensive and capital-intensive showed an increase in comparative advantage. Different condition is the trend of the two standard deviations. Standard deviation capital-intensive industrial products showed an upward trend. This indicates if the increased specialization in several industry groups, while other industry groups are relatively fixed or may even decrease. Estimation using Spearman's rank correlation shows if there has been a shift in the pattern of comparative advantage of Indonesia's export products. An industry which at the beginning has comparative advantage can be shifted into industries that do not have the advantage, and vice versa. When Indonesian industry divided into capital-intensive industry and labor intensive, it can be seen if the shift in capitalintensive industry is more dynamics than the labor-intensive one. [ABSTRACT FROM AUTHOR]

An attempt aims to find out an alternative to avoid expanding existing fossil power plants to cope with a high growth demand of electricity in Indonesia could be done through electrical energy efficiency improvement. Provided that in-depth knowledge of end-use characteristics of electricity consumption is known, in this study, a primary survey was conducted between Nov. 2011–Jan. 2012 to investigate the characteristics of urban household electrical energy consumption in Indonesia. Data were collected from 600 respondents living in seven major cities in Indonesia, only 474 (79%) of respondents were considered to be valid. The result shows that, lamps, television sets, refrigerators and air conditioning units are appliances that have the greatest potentials for electrical energy saving. The information from the survey was then adopted to initiate energy saving programs to avoid construction of new power plants. It was found that if energy efficiency improvement programs are initiated and implemented for the four types of appliances mentioned above from now to 2030, the costs of saved energy (CSE) of these energy saving programs are only a fraction of the long run marginal cost (LRMC) of new power plant constructions, ranging from 5.1% for lamps, 21.6% for television sets, 80.9% for refrigerators, and 19.5% for air conditioning units, respectively. In addition, energy efficiency improvement program can also help to reduce total amount of electricity generation and CO 2 emission. In 2030, this alternative can reduce amounts electricity generation and CO 2 emission attributed for household sector by 21.4% and 21.6%, respectively, as compared to the conventional supply side of expanding new power plants. [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]

Few studies have examined spousal income in the context of happiness. This paper analyzes the Indonesia family life survey and finds a positive relationship between the husband's income and his wife's happiness. Specifically, a 100 % increase in the husband's income is related to a 0.72 % point increase in his wife expressing very happy, which is about 11 % of the proportion expressing that response. Surprisingly, among the husband's characteristics, only his income (along with health) is statistically significantly related to his wife's happiness. This positive relationship is particularly strong among old, educated, and poor (in absolute and relative terms) urban residents. [ABSTRACT FROM AUTHOR]

Purpose As a prominent actor in terms of achieving sustainable socioeconomic development, especially in rural areas, Islamic banks are urged to pursue their main objective. It is required to set the objective accordingly from time-to-time to continuously make a positive contribution to the sustainable socioeconomic development. Hence, the integration of the external factors such as government’s economic target (macro) into Islamic banking’s objectives (micro) is needed.Design/methodology/approach This research attempts to identify factors that might prevent the sustainable economic development activities within the micro–macro circular causal model established by Tawhidi String Relation (TSR) methodology.Findings The research clearly found that the existing Islamic banking’s business and directions had an uncorrelated connection with Indonesia’s economic objective. Nevertheless, the Islamic banking’s Musharakah and Mudharabah contract for Usaha Mikro Kecil Menengah [(UMKM) (Micro, Small Medium Enterprises)] was showing the positive correlation to their financial performance indicator. Hence, Islamic banking is strongly suggested to be more focused on these two types of partnership financing contract to UMKM. Furthermore, its value and volume is needed to be expanded to build Indonesia’s sustainable socioeconomic foundation. Then the positive gross domestic product (GDP) growth will be achieved.Originality/value The existing research covering the sustainability index is mainly only based on the macro perspective, while in this research, the integration between the micro and macro perspectives between government objectives and Islamic banking objectives is needed. This interaction and integration between the two are in line with the concept of the TSR methodology. [ABSTRACT FROM AUTHOR]

In recent years a debate has emerged about the conditions under which justiciable legal frameworks facilitate the fulfilment of socioeconomic rights. This debate has pitted institutionalist perspectives that emphasise the progressive potential of democratisation against structuralist perspectives that emphasise the constraints imposed by relationships of power and interest. This paper considers the debate in light of Indonesia’s recent experience. It suggests that we need to examine how institutional and structural factors interac twithin particular contexts to shape socioeconomic rights fulfilment, not examine these factors in isolation. It also considers the strategic implications of this argument for rights proponents. [ABSTRACT FROM PUBLISHER]

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This article analyses the effectiveness of trade unions' electoral engagement in the union-dense electoral localities of Bekasi and Tangerang in Indonesia's 2009 legislative elections. Our analysis reveals that legacies of authoritarianism, electoral rules, and union fragmentation pushed unions to pursue an ineffective electoral strategy of running union cadres on various party tickets. In Bekasi, local leaders within the Federation of Indonesian Metalworkers Unions (FSPMI) chose not to mobilize resources to support union candidates because the union's national leadership had failed to convince them of the soundness of its strategy. In Tangerang, local leaders embraced the National Workers Union's (SPN) national electoral strategy, but had inadequate membership data to conduct electoral mapping and did not provide candidates with financial and leadership support. Neither union, meanwhile, gave much consideration to the problem of translating membership to votes: survey data reveal that most members could not name union candidates, and many of those who could did not vote for them. The article argues that, despite its flaws, trade unions' strategy of engagement in the electoral arena constitutes an important step forward in the consolidation of Indonesia's democracy. [ABSTRACT FROM AUTHOR]

This article examines the relationships between the changes and continuities of Indonesian local politics and Chinese Indonesian business practices in the post-Suharto era, focusing on Chinese Indonesian businesses in two of the largest Indonesian cities, Medan and Surabaya. The fall of Suharto in May 1998 led to the opening up of a democratic and liberal space as well as the removal of many discriminatory measures against the Chinese minority. However, due to the absence of an effective, genuinely reformist party or political coalition, predatory political-business interests nurtured under Suharto’s New Order managed to capture the new political and economic regimes. As a result, corruption and internal mismanagement continue to plague the bureaucracy in the country and devolve from the central to the local governments. This article argues that this is due partially to the role some Chinese businesspeople have played in perpetuating corrupt business practices. As targets of extortion and corruption by bureaucratic officials and youth/crime organizations, Chinese businesspeople are not merely passive and powerless victims of corrupt practices. This article argues, through a combination of Anthony Giddens’s structure-agency theory as well as Pierre Bourdieu’s notion of habitus and field, that although Chinese businesspeople are constrained by the muddy and corrupt business environment, they have also played an active role in shaping such a business environment. They have thus played an active role in shaping local politics, which is infused with corruption and institutionalized gangsterism, as well as perpetuating their increasingly ambivalent position. [ABSTRACT FROM AUTHOR]

This paper is an attempt to explore the features of Indonesia’s post-New Order regime in terms of the reorganization of the spatial, economic, and socio-political order in the Jabodetabek region. Although buoyant property investments in the last seven to eight years significantly changed the skyline of the metropolis, this paper reveals that the basic pattern did not alter after the regime change, with major developers taking control of vast areas of suburban land and creating an oligopolistic order. This paper argues that this continuity was due greatly to the developers’ ability to organize and protect their collective interests through business associations and strong ties with political parties and the administration. The paper concludes that the emerging new regime comprises privatized urban governance in satellite cities, a dual government arrangement, and widening socio-spatial cleavages. So far, the tension inherent in this arrangement has been contained by measures such as the privatization of security and the political mobilization of Islam. [ABSTRACT FROM AUTHOR]

A glossary of terms and abbreviations used in volume 51, number 3 issue, of the periodical "Bulletin of Indonesian Economic Studies" is presented.

The political authority of President Joko Widodo (Jokowi) was bolstered in the third quarter of 2015 by a cabinet reshuffle, his coalition's gaining a parliamentary majority, and several foreign-policy developments. Indonesia's request to rejoin OPEC, for example, after having left in 2008, seemed more about international relations than oil prices, while official visits to the Middle East and the United States allowed Jokowi to project his presidency on the international stage. He still faces resistance from within his own party, however. Jokowi's politically bold reshuffle of economic ministers in August soon yielded a range of policy announcements. In September and October, his government introduced its first substantial set of reforms—a number of economic policy packages intended, among other things, to attract investment and stimulate domestic demand. If even half of these policies are put in place, the impact on Indonesia's economy should be tangible. Few countries have escaped the effects of falling global commodity prices and China's growth slowdown. At 4.7%, year on year, in the third quarter Indonesia's rate of economic growth again fell short of the government's target. Slowing growth and a negative outlook have lowered market expectations and weakened the rupiah, which is also burdened by the large outstanding external debt held by corporate borrowers. Indonesia's real effective exchange rate has recently begun to depreciate, however, which may stimulate exports. Growth prospects will also improve if the substantial increase in capital and infrastructure spending allocated in the state budget is realised. Against this backdrop, we focus on what has happened to poverty and inequality in Indonesia since Jokowi took office. The distributional impacts of the current macroeconomic climate are likely to be hardest felt by the poor. Indonesia is well known for its record on poverty reduction, but between September 2014 and March 2015 the share of the population in poverty increased, even though economic growth was close to 5.0%. Slowing growth, rising food prices, the falling real wages of farmers, and the delayed disbursement of fuel-price compensation all had an effect. Such impacts may be mitigated in the medium term by Jokowi's budget reallocations to infrastructure, if realised, and his expansion of social spending. [ABSTRACT FROM PUBLISHER]