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1. Understanding JI Resilience and Australia’s Counterterrorism Efforts in Indonesia

Author:
Tom Connolly
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Pacific Forum
Abstract:
Jemaah Islamiyah (JI) remains one of Indonesia’s longest standing state security threats. It has survived major organizational transformations, state security crackdowns, and international military operations in its pursuit of an Islamic caliphate in Indonesia that could extend to incorporate Malaysia, Singapore, and the southern Philippines. Jemaah Islamiyah rose to prominence for its role in orchestrating the 2002 Bali Bombings, which prompted the United States and Australia to engage Jakarta with the shared goal of destroying the organization and its links to al-Qaeda. Security pressures from Indonesian security services and international forces led to the dismantling of much of Jemaah Islamiyah’s leadership by 2007, which pushed it into a state of hibernation, where members focused on consolidating numbers and religious outreach. The emergence of the Islamic State and its Southeast Asian affiliates in 2014 occupied much of the Indonesian security services’ resources, which gave space to Jemaah Islamiyah to regenerate its strength with renewed vigor. The 2017 discovery of a JI military training program in Syria re-alerted Indonesian counterterrorism authorities to the risk posed by the group, and successive waves of arrests and crackdowns ensued. Although the COVID-19 pandemic meant that many terrorist groups ceased offensive operations and maintained a low profile, Jemaah Islamiyah began to infiltrate Jakarta’s state apparatus, civil society, and academia to promote its political objectives. Jemaah Islamiyah’s long history in Indonesia has proven it to be adaptable, patient, and persistent in pursuit of its objectives. Although it is not currently engaged in military operations, JI’s long history in Indonesia has shown the group is adaptable, patient, and long-term in its thinking. Observers suspect that leaders in Jemaah Islamiyah are biding their time and seeking gaps in state authority that they can exploit to pursue their organizational goals.
Topic:
National Security, Non State Actors, Violent Extremism, Counter-terrorism, and Resilience
Political Geography:
Indonesia, Australia, and Indo-Pacific

2. How Indonesia Used Chinese Industrial Investments to Turn Nickel into the New Gold

Author:
Angela Tritto
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
China has become a global power, but there is too little debate about how this has happened and what it means. Many argue that China exports its developmental model and imposes it on other countries. But Chinese players also extend their influence by working through local actors and institutions while adapting and assimilating local and traditional forms, norms, and practices. With a generous multiyear grant from the Ford Foundation, Carnegie has launched an innovative body of research on Chinese engagement strategies in seven regions of the world—Africa, Central Asia, Latin America, the Middle East and North Africa, the Pacific, South Asia, and Southeast Asia. Through a mix of research and strategic convening, this project explores these complex dynamics, including the ways Chinese firms are adapting to local labor laws in Latin America, Chinese banks and funds are exploring traditional Islamic financial and credit products in Southeast Asia and the Middle East, and Chinese actors are helping local workers upgrade their skills in Central Asia. These adaptive Chinese strategies that accommodate and work within local realities are mostly ignored by Western policymakers in particular. Ultimately, the project aims to significantly broaden understanding and debate about China’s role in the world and to generate innovative policy ideas. These could enable local players to better channel Chinese energies to support their societies and economies; provide lessons for Western engagement around the world, especially in developing countries; help China’s own policy community learn from the diversity of Chinese experience; and potentially reduce frictions.
Topic:
Development, Industrial Policy, Belt and Road Initiative (BRI), Investment, and Innovation
Political Geography:
China, Indonesia, and Asia

3. RCEP and Indonesia: Economic Reform and Prospects for Implementation

Author:
Yose Rizal Damuri and Deni Friawan
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The conclusion of the Regional Comprehensive Economic Partnership (RCEP) is very important for Indonesia as it may bring many benefits to the country. This paper is an attempt to see the role of domestic political-economy dynamics in facilitating and constraining Indonesia’s decision to join, ratify, and implement a free trade agreement (FTA). It also seeks some understanding on whether an FTA can bring significant market liberalisation. This paper focuses on two areas of observation. First, it discusses the current progress of the legislative process and public acceptance of the RCEP agreement in Indonesia and how the process is influenced by the political-economy dynamics of the country. Second, the paper also looks at the potential impacts of the agreement on Indonesia’s current reform agenda, especially the recently passed Jobs Creation Law (Law No. 11/2020). For these observations, we conduct a content analysis on RCEP-related news published in two newspapers in Indonesia, namely Kompas and the Jakarta Post. In addition to content analysis, we also conducted interviews with stakeholders, including parliament members and government officials from the Ministry of Trade who have been actively involved in RCEP negotiations and the ratification process. The paper provides some remarks and recommendations for the future agenda of RCEP ratification and implementation in Indonesia.
Topic:
Economics, Reform, Policy Implementation, Free Trade, and Trade
Political Geography:
Indonesia and Southeast Asia

4. Foreign Direct Investment, Agglomeration, and Production Networks in Indonesian Manufacturing

Author:
Dionisius Narjoko
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the importance of globalisation – defined by international production networks – in determining foreign direct investment (FDI) flows into Indonesian manufacturing since 2000. It is motivated by the fact that the extent of connection between the Indonesian and the global economy had increased after the 1997–98 Asian financial crisis. Models of FDI are estimated by utilising plant-level data and various trade and tariff data. Production networks or agglomeration are found to play an important role in driving FDI in Indonesia’s manufacturing sector, at least for the period 2000–2015. This study provides the insight that agglomeration could be utilised to increase FDI in Indonesia. This not only improves the productivity of the sector targeted by the investment but also promotes productivity growth. Creating more agglomeration areas could therefore be a policy direction taken by Indonesia to help increase FDI.
Topic:
Foreign Direct Investment, Investment, Manufacturing, and Production
Political Geography:
Indonesia and Southeast Asia

5. Economic Zones and Local Income Inequality: Evidence from Indonesia

Author:
Cecília Hornok and Sidan Raeskyesa
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
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. Estimates from panel regressions and synthetic control case studies suggest that this relationship is positive overall. The estimated rise in income inequality after a zone opens is relatively small on average and may be short-lived. However, the average estimate masks large regional differences, which suggests that the inequality implications of economic zone policies depend on local conditions. One explanation for the rise in inequality is that the unskilled population benefits disproportionately less from the policy. As a remedy, we propose education and training programs that target the poor and unskilled and in which companies also actively participate.
Topic:
Economics, Emerging Markets, Globalization, Economic Growth, and Income Distribution
Political Geography:
Indonesia, Asia, and Southeast Asia

6. Localization and China’s Tech Success in Indonesia

Author:
Gatra Priyandita, Dirk Van Der Kley, and Benjamin Herscovitch
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
On average, Indonesians distrust China and many Chinese firms. Yet Huawei and to a lesser extent ZTE have successfully positioned themselves as trusted cybersecurity providers to the Indonesian government and the Indonesian nation. This has been no easy feat given long-held Indonesian animosity toward China. Many Chinese companies have faced protests over concerns they were taking local jobs. Huawei and ZTE have suffered no such fate. Nor has there been a broad coalition of Indonesian voices against using Chinese technology in critical telecommunications infrastructure. In short, Indonesians care a lot more about Chinese cement plants than they do about Huawei involvement in 5G networks. Gatra Priyandita Gatra Priyandita is an analyst at the International Cyber Policy Centre at the Australian Strategic Policy Institute, where he leads a project researching cyber-enabled intellectual property theft. He is a political scientist by training and specializes in the study of foreign policy and security in Southeast Asia. He holds a PhD in political science from the Australian National University. This is a vastly different conversation to those happening in rich liberal democracies. Huawei and ZTE have been able to achieve success in Indonesia, despite a sense of ambivalence among the Indonesian political and defense establishment about Chinese intentions and growing Western scrutiny over the use of Chinese technology in broadband networks. As other papers in this series have demonstrated, Huawei and ZTE needed to localize their strategies. Like elsewhere in the world, available evidence suggests that part of Huawei’s and ZTE’s value proposition is cheaper prices (compared to those of competitors) for high-quality technology. But that is only part of the story. Huawei has positioned itself as Indonesia’s cybersecurity provider of choice by offering enormous cybersecurity and other related training programs across the country for groups ranging from senior government officials to students in rural Indonesia. Much of this training is technically focused on practical vocational skills with a hope that students one day will become customers. In addition, the company offers an attractive maintenance and upkeep package. Since the mid-2000s, Chinese information and communications technology (ICT) firms have created training centers in partnership with local Indonesian telecoms companies and universities to train the next generation of Indonesian engineers and tech specialists. Government agencies are also increasingly targets of training and capacity-building programs, with Huawei claiming that 7,000 government officials have participated in its training programs. The Indonesian government, corporations, and ordinary citizens alike have welcomed Huawei and ZTE as essential partners in their efforts to build both the infrastructure and human capital necessary to prosper in the twenty-first century’s digital economy. What Huawei and ZTE offer is knowledge transfer, not technology transfer. The technology is still being built in China by Chinese firms. Huawei’s role in training relates instead to capacity building. Indonesians will install, maintain, and use the networks. China will build the hardware. There is also evidence that China has had some rhetorical success in pushing its version of cyberspace governance. Beijing’s preferred cyberspace governance language was inserted into a memorandum of understanding between Indonesia’s National Cyber and Crypto Agency and the Cybersecurity Administration of China. However, it is difficult to see how the memorandum has influenced Indonesia’s cybersecurity governance in practice. One of the concerns often leveled by rich liberal democracies is that reliance on Chinese tech will end up aligning the political interests of countries like Indonesia with those of China. Other key worries are China’s pervasive espionage and the enduring (though as yet unrealized) risk that Chinese companies with a dominant role in an ICT ecosystem could be used by Beijing to apply coercive political pressure. Despite Indonesia’s embrace of Huawei and ZTE, political leaders in Jakarta have not simply disregarded the hard security questions posed by upgrading ICT equipment, especially when foreign suppliers are involved. Indonesian officials simply rate the need for development and cybersecurity-related capacity building higher than the risk of using Chinese ICT hardware in their critical infrastructure systems. If rich liberal democracies are concerned about this trend, then they need to offer workable alternatives that place Indonesia’s enormous digital development needs at the heart of any value proposition. It is unlikely that Indonesia will stop using Chinese hardware in its infrastructure, but alternatives could prevent overreliance.
Topic:
Foreign Policy, Science and Technology, Cybersecurity, Telecommunications, and Localization
Political Geography:
China, Indonesia, and Asia

7. Digital Technology Adoption and Indonesia’s MSMEs during the COVID-19 Pandemic

Author:
Teguh Yudo Wicaksono and Andre Simangunsong
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The coronavirus disease (COVID-19) pandemic has hit micro, small, and medium-sized enterprises (MSMEs) hard. The estimated economic impact of COVID-19 could exceed the fiscal stimulus package as a percentage of gross domestic product (GDP). Digital technologies have helped them to better navigate the situation. Yet Only 13% of MSMEs adopt the internet for marketing and delivering their products and services. This paper discusses Indonesia’s MSMEs during the COVID-19 pandemic and the digital transformation they pursue. We also discuss policy responses and government support to help MSMEs navigate the worst public crisis in our lifetime.
Topic:
Science and Technology, Pandemic, COVID-19, and Digitalization
Political Geography:
Indonesia and Oceania

8. China’s Digital Silk Road in Indonesia: Progress and implications

Author:
Zulfikar Rakhmat
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This Strategic Update discusses the progress of China’s Digital Silk Road in Indonesia, a major destination, in both its hard and soft aspects, as well as the potential impact of its implementation. Chinese companies are offering a response to Indonesia’s needs, but concerns exist, especially surrounding security and surveillance, that Indonesia’s increasing reliance on China could also further erode its democracy.
Topic:
Security, Foreign Policy, Economy, Surveillance, and Belt and Road Initiative (BRI)
Political Geography:
China, Indonesia, Asia, and Indo-Pacific

9. Whose intergenerational mobility? A new set of estimates for Indonesia by gender, geography, and generation

Author:
Diding Sakri, Andy Sumner, and Arief Anshory Yusuf
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Various scholars have estimated levels of intergenerational mobility in OECD countries. Fewer estimates are available for developing countries, where mobility arguably matters more due to starker differences in living standards. This paper presents new estimates of mobility for a developing country, namely Indonesia. The estimates are based on data from five waves of the Indonesian Family Life Survey, a longitudinal analysis of socio-economic status which began in 1993. We constructed a pooling sample consisting of 9,445 matching pairs of children and their parents. The paper estimates relative mobility using the intergenerational elasticity of income. We find that although, overall, the intergenerational elasticity of income is low compared with other developing countries, the level of mobility in Indonesia differs markedly by children’s gender and across provinces and generations.
Topic:
Mobility, Family, Survey, and Longitudinal Analysis
Political Geography:
Indonesia and Southeast Asia

10. Binding Constraints on Digital Financial Inclusion in Indonesia: An Analysis Using the Decision Tree Approach

Author:
Firman Witoelar, Teguh Yudo Wicaksono, and Carlos Mangunsong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Despite the concerted efforts of the Indonesian government to increase financial inclusion and the e-commerce–led growth of digital payment services, a large proportion of the country’s population remains financially excluded. Much of the growth and innovation has mainly benefited those already financially included. To understand this outcome, we use the decision tree approach developed by Claessens and Rojas-Suárez (2020), focusing on one of the products with the largest potential to increase financial inclusion in the country: e-money. Our analysis finds that a crucial binding constraint on the expansion of e-money services is a regulatory framework that creates an unlevel playing field between banks and nonbank providers of digital financial services. Regulatory restrictions applied to nonbanks on cashout services, agent recruitment, and know-your-customer processes are at the core of the problem. In addition, a perception of low benefits from the usage of formal financial services results in a lack of the critical mass of customers necessary to ensure the profitability of agents, particularly in remote and rural areas, and thus the expansion of e-money services. We also find other constraints that are not binding at the national level but are binding for some specific groups. The low provision of digital infrastructure in rural areas outside Java is one of them. In addition, constraints such as low trust in providers, though not binding, should be addressed in order to maximize the gains that could be obtained from relaxing the binding constraints.
Topic:
Development, Finance, Digitalization, and Digital Finance
Political Geography:
Indonesia and Oceania

11. Introducing the Mind-the-Gap Index: A tool to understand urban spatial inequality

Author:
Jeni Klugman and Matthew Moore
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
Where people live exerts a strong influence on multiple aspects of their well-being, including their access to economic opportunities, education, health and other services and to their security, as well as other goals envisioned in the 2030 Agenda for Sustainable Development. In a world with high and growing levels of urbanization, policy makers are increasingly aware that the future of inequality depends largely on what happens in cities. There is also concern that rising spatial inequality can lead to social unrest, rioting, increased crime, and erode trust among separated societal groups. The World Bank estimates that half of the area that will be urbanized by 2050 has not yet been built, which implies major opportunities for the policies and decisions affecting cities to shape the world we live in. First, this paper synthesizes several research papers regarding what we already know–drawing on recent research from UNDESA and others–to outline the extent of spatial disparities, the ways that spatial inequality shapes today’s cities, and the key factors driving spatial disparities. Additionally, the paper introduces a new index designed to capture key dimensions of spatial inequality, along with analysis of results from three pilot applications in Addis Ababa, Jakarta, and Mexico City which highlights the importance of granular and up-to-date data, as well as the accumulating nature of disadvantage in poor neighborhoods.
Topic:
Inequality, Sustainable Development Goals, and Urban
Political Geography:
Indonesia, Ethiopia, and Mexico

12. The Legacy of Lekra: Organising Revolutionary Culture in Indonesia

Author:
Tricontinental: Institute for Social Research
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
In 1965, the Indonesian revolutionary cultural organisation, Lekra, had 200,000 members and one and half million supporters. This was followed by a coup and the killing of one million communists in the months that followed. On the seventieth anniversary since its founding, this dossier traces Lekra’s history and calls on the artists and militants of today to combine individual creativity with the wisdom of the masses, from whose struggles for emancipation we seek hope and direction.
Topic:
Culture, Revolution, and Mobilization
Political Geography:
Indonesia and Asia-Pacific

13. Iran’s Revolutionary Influence in South Asia

Author:
Husain Haqqani
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Hudson Institute
Abstract:
Soon after Iran’s Islamic revolution in 1979, its leader, Ayatollah Ruhollah Khomeini declared that Iran would challenge “the world’s arrogant powers” across the globe. 1 “We shall export our revolution to the whole world,” he announced, adding that “Until the cry ‘There is no God but God’ resounds over the whole world, there will be struggle.’” 2 The idea of exporting Iran’s ideology was also incorporated in the Islamic Republic’s constitution. Article 154 of the current Iranian constitution affirms that Iran “supports the just struggles of the mustad’afun [oppressed] against the mustakbirun [tyrants] in every corner of the globe.” As is often the case with revolutionary regimes, the early fervor of the Iranian revolution seems to have subsided and the broader goal of replicating the Islamic revolution has been modified to expanding Tehran’s influence and ensuring external support for the survival of its clerical regime. But Iran still pursues a robust policy of cultivating and deploying proxies in other, mainly Muslim countries. The role of Iran’s proxies and allies in the Middle East is well known, partly because it is more overt. Hezbollah’s targeting of Israel and its efforts to dominate Lebanon, Iran’s role in propping up the Bashar Assad regime in Syria, or its political and militant meddling in Iraq and Yemen often make headlines. But the Ayatollahs have also expanded their influence across South, Central, and East Asia without attracting the same level of attention as their activities in the Middle East.
Topic:
History, Ideology, Islamism, and Revolution
Political Geography:
Iran, South Asia, Indonesia, and Middle East

14. Input Allocation Behaviour on Tariff Changes: The Case of Indonesia’s Manufacturing Industries

Author:
Samuel Nursamsu, Dionisius Narjoko, and Titik Anas
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Can firms reallocate their imported inputs to domestic sources when faced with import tariffs? To answer this question, we analyse the input allocation behaviour of Indonesian medium and large-sized manufacturing firms in responding to the movement of import tariffs from 2000 to 2013 by utilising plant-level input data of Indonesian manufacturing. We find that an increase in tariffs only creates a weak substitution effect. Our findings indicate that firms reallocate their inputs towards domestic sources, although this is accompanied by a decrease in the firms’ value added. This implies that domestic inputs are worse substitutes for imported inputs and that firms’ capacity to switch over to domestic products is limited, suggesting that firms will immediately switch back to importing when the tariff is removed. We find no evidence that firms make any adjustment towards more domestic-oriented input composition over time; and heterogeneity exists within the result, as industries with a strong basis in the domestic market are more capable of adjusting.
Topic:
Industrial Policy, International Trade and Finance, Tariffs, and Manufacturing
Political Geography:
Indonesia and Asia

15. Foreign Direct Investment and Labour Market Dynamics in a Developing Country: Evidence from Indonesian Plant-Level Data

Author:
Toshiyuki Matsuura and Hisamitsu Saito
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the impact of inward foreign direct investment on the wages and employment of skilled and unskilled workers in Indonesian manufacturing plants. Entry of multinational enterprises affects local labour markets through spillovers as well as labour and product market competition. Our results show that spillovers increase the labour demand of local plants for unskilled workers, but increased wages due to severe labour market competition reduce the demand for skilled workers. We also find that product market competition causes resource reallocation from low- to high-productivity plants. Thus, attracting inward foreign direct investment effectively enhances aggregate productivity growth, but may retard the transition to skill-intensive production in Indonesian manufacturing.
Topic:
Development, Foreign Direct Investment, Manufacturing, and Labor Market
Political Geography:
Indonesia and Asia

16. A Quantitative Analysis of Disaster Risk Reduction Investment Effects for Sustainable Development: Indonesia Case Study

Author:
Hiroaki Ishiwata, Hiroyuki Wada, Koji Suzuki, and Naoto Tada
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper analyses the long-term impacts of large-scale disasters on the economic growth of developing countries in the Association of Southeast Asian Nations (ASEAN) Community, by the scale of disaster risk reduction (DRR) investments. As a means of quantitatively analysing the optimal level and economic efficiency of DRR investments, a case study was conducted on Indonesia by using a dynamic stochastic macroeconomic model. The results showed that in Indonesia, although greater economic growth is expected when additional DRR investments are made, an excessive DRR investment may contrarily lead to a slowdown in economic growth: an optimal level of DRR investment exists and maintaining its level is essential for sustainable economic growth. Furthermore, it was confirmed that there is a break-even point when the amount of accumulated disaster damage mitigation benefits exceeds the amount of accumulated DRR investment. This demonstrated that the funds invested in DRR could be recovered. Additionally, the results also showed that even if no disaster damage is caused over a long period of time, DRR investments are by no means redundant as the ‘ex-ante risk reduction effect’ will be generated when the optimal level of DRR investment is made. Lastly, it was determined that providing a continuous DRR investment is important in achieving the global target set forth in the Sendai Framework for Disaster Risk Reduction. In addition, it is considered desirable to maintain a higher level of DRR investment than that which is currently being implemented.
Topic:
Economic Growth, Investment, Risk, and Disaster Management
Political Geography:
Indonesia, Asia, and Indo-Pacific

17. The Economic Impact of Globalisation in Indonesia

Author:
Kiki Verico and Mari Pangestu
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper analyses the economic impact of globalisation in Indonesia from the end of the 1960s to date. The analysis found that globalisation generated a positive impact on Indonesia’s economic growth through the trade and investment channel; reduced wage inequality and child labour participation; and increased labour absorption, including women's participation in the labour market. Through the trade channel, globalisation also contributed to Indonesia’s productivity and structural economic transformation, benefited small and medium-sized enterprises (SMEs), contributed to poverty alleviation and reduced inequality, and increased trade in services such as tourism. Through the investment channel, there is evidence of the spillover effect of technology transfer, technology progress, improvement of the role of SMEs, and contribution to poverty alleviation. The waves of open and more restrictive trade and investment policies, which Indonesia has gone through in the last few decades, reflect the political economy reality – that is, the impact of globalisation is dynamic and only felt in the medium term, whereas the cost and potential negative impact is often felt more immediately throughout trade creation. The trade creation increases imports from countries with which free trade agreements have been negotiated, decreasing the domestic producer surplus. Since globalisation will create net benefits in the long run, Indonesia should continue its process of globalisation and integration with the world economy to ensure the net benefits and to move forward in its structural transformation, while managing the costs of globalisation and its transition process.
Topic:
Globalization, International Cooperation, International Trade and Finance, and Economic Growth
Political Geography:
Indonesia, Asia, and Indo-Pacific

18. Financial Inclusion and Savings in Indonesia

Author:
Rashesh Shrestha and Samuel Nursamsu
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper discusses the status of financial inclusion in Indonesia and examines the impact of financial inclusion – based on availability of bank branches on household outcomes – in Indonesia. Based on analysis of the World Bank’s Financial Inclusion Survey (FINDEX) data, Indonesia has made some progress on expanding financial inclusion. The share of individuals with bank accounts rose from less than 20% to just under 50% in 2017. Interestingly, while the gain between 2011 and 2014 was greater for individuals in the upper 60 percentile of income, the gains between 2014 and 2017 were more pro-poor. This progress was made possible due to concerted government efforts to expand financial inclusion. In our empirical analysis, we study how financial inclusion enables households with income gains into savings for assets and earnings. Using the Indonesian Family Life Survey data, we find that living in areas with high density of bank branches helps poor households accumulate savings. The marginal effect of financial inclusion on savings is highest amongst the households in the bottom quintile of per capita consumption distribution. Thus, access to formal financial institutions can lead to improvement in household welfare.
Topic:
Inequality, Finance, Banks, and Domestic Policy
Political Geography:
Indonesia, Asia-Pacific, and Indo-Pacific

19. Measuring the Pro-Poorness of Urban and Rural Economic Growth in Indonesia, 2004–2014

Author:
Takahiro Akita and Sachiko Miyata
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study measures the pro-poorness of urban and rural economic growth by region from 2004 to 2014 in Indonesia using pro-poor growth indexes, with data from the National Socio-Economic Survey (Susenas). It also conducts a probit analysis to explore the determinants of poverty. All regions (Sumatra, Java–Bali, Kalimantan, Sulawesi, and East Indonesia) experienced a substantial increase in expenditure inequality in both urban and rural areas; thus, the change in poverty incidence due to redistribution effects is positive. Apart from East Indonesia, they reduced the incidence of poverty in both areas, but their growth was not pro-poor in the strict sense. According to the pro-poor growth indexes, urban areas performed better than rural areas; in most regions, the growth of urban areas was moderately pro-poor, while that of rural areas was weakly pro-poor or anti-poor. The government needs to take urban–rural and regional differences into account when formulating poverty alleviation policies and programs since these differences would affect economic growth and changes in inequality.
Topic:
Poverty, Inequality, Economic Growth, Urban, and Rural
Political Geography:
Indonesia, Asia-Pacific, and Indo-Pacific

20. Social Interventions, Health and Wellbeing: The Long-Term and Intergenerational Effects of a School Construction Program

Author:
Bhashkar Mazumder, Maria Rosales-Rueda, and Margaret Triyana
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
We analyze the long-run and intergenerational effects of a large-scale school building project (INPRES) that took place in Indonesia between 1974 and 1979. Specifically, we link the geographic rollout of INPRES to longitudinal data from the Indonesian Family Life Survey covering two generations. We find that individuals exposed to the program have better health later in life along multiple measures. We also find that the children of those exposed experience improved health and educational outcomes and that these effects are generally stronger for maternal exposure than paternal exposure. We find some evidence that household resources, neighborhood quality, and assortative mating may explain a portion of our results. Our findings highlight the importance of considering the long-run and multigenerational benefits when evaluating the costs and benefits of social interventions in a middle-income country.
Topic:
Education, Health, Poverty, Inequality, Economic Growth, and Economic Development
Political Geography:
Indonesia and Asia

21. The Modalities and Roles of Local Governments to Face Terrorism Issues in Indonesia: The Case Study of Malang Raya Region

Author:
Gonda Yumitro, Dyah Estu Kurniawati, Saiman, Dion Maulana Prasetya, and Shannaz Mutiara Deniar
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
This article examines the role of local governments in facing the threat of terrorism in Indonesia, selecting as a case study the Malang Raya region, which consists of Malang City, Malang Regency, and Batu City. The selection of these three regional governments is interesting because some of the suspected terrorists were arrested and arranged their actions to some other places in Indonesia from this region. By using the concept of securitization, this research finds that the securitization done by the local governments is influenced by internal and external modalities they have for facing terrorism. Therefore, the mapping of the modalities in this research contributes to the local governments gaining more legitimacy in constructing threats and make speech acts work well. It is also the modalities which determine whether the process will be successful or failed. However, there were some obstacles found which encouraged the government to collaborate with other stakeholders, such as civil societies from Pesantren, to face the issues of terrorism in the region.
Topic:
Security, Civil Society, Government, and Terrorism
Political Geography:
Indonesia and Southeast Asia

22. Administering the Regional Dynamics: The Success Story of Indonesia and ASEAN

Author:
Muhammad Habib Abiyan Dzakwan
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
Back in early 1960s, it was unthinkable for Southeast Asia to have one single regional ‘home’ as diversity among countries within the area are just too wide. The political systems they adhere, the dominant religions they believe, the languages they speak, the economic situation they experience, the geographical regionalism was definitely the least thing on their shopping list bearing in mind the state of domestic dynamics during their formative years. But, now the situation has turned for one hundred and eighty degrees. Right on Thursday 8 August 2019, the ten Southeast Asian states —Brunei Darussalam, Cambodia, Indonesia, characters they are endowed are just a few examples. These countries at that time were also relatively new in practicing their respective sovereignty. Advancing imaginations about Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam— just celebrated the inauguration of a new secretariat building for the Association of Southeast Asian Nations (ASEAN) which also remarked the 52nd anniversary of this organization. This remarkable story undeniably could not be detached from Indonesia’s long standing efforts in ASEAN. Therefore, throughout the following paragraphs, this article aims to briefly discuss three issues - the origins of ASEAN, Jakarta’s contribution to regional dynamics, and ASEAN achievements with regard to the great powers.
Topic:
Regional Cooperation, Religion, Culture, Language, and Regionalism
Political Geography:
Indonesia, Asia, Vietnam, Philippines, Cambodia, Singapore, Thailand, Southeast Asia, and Myanmar

23. Examining the Growth of Islamic Conservatism in Indonesia: The Case of West Java

Author:
Irman Lanti, Akim Ebih, and Windy Dermawan
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
With 48 million people, West Java is Indonesia’s largest province in terms of population. Historically, it has served as the cradle of Islamic conservatism in Indonesia. Modernist Islamic parties and candidates that espouse a purist and orthodox form of Islam always won the free and fair elections in this province. It was also the centre of Indonesia’s Islamic rebellion, the Darul Islam / Tentara Islam Indonesia (DI/TII). The Islamic landscape of West Java, however, is not that much different from that of Central and East Java, which is based on Islamic traditionalism. The differences in the socio- political outlook between West Java and other major provinces in Java are due to historical reasons and set it apart from the pattern developed in the others. With the arrival of the new dakwah movements influenced by the Islamic transnational forces, Muslims in West Java are embroiled in an ambivalent position. On one hand, the new movements are considered as bringing a renewed sense of vigour for the Islamic dakwah in this region, but on the other hand, they are also seen as a threat to the common religious practices there. There are indications that conservative West Java is undergoing a further conservative turn, especially judging by the recent voting pattern in the province. However, there is also signs that the threat brought by the new dakwah movements might produce a turnaround away from the deepening of conservatism there.
Topic:
Islam, Religion, Domestic Politics, Conservatism, and transnationalism
Political Geography:
Indonesia, Asia, and West Java

24. Capturing Anti-Jokowi Sentiment and Islamic Conservative Masses: PKS 2019 Strategy

Author:
Adhi Priamarizki and Dedi Dinarto
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper examines the Prosperous and Justice Party (PKS)’s strategy in the 2019 Indonesian general elections. Among the Islamic-based political parties, PKS gained the most significant increase in votes. We aspire to understand the breakthrough by looking at the party’s strategy. On the one hand, our findings confirm the existing studies that correctly noted the moving of Indonesian political parties towards a “catch-all” direction by which they aim to garner wider support beyond a specific type of voter base. On the other hand, our research notes that PKS has started to exploit the phenomenon of rising Islamic conservatism in Indonesia. Despite solely maintaining an inclusive electoral strategy, this research asserts that the party has adjusted its campaign strategy to fit in with the trend of rising Islamic conservatism while concurrently exploiting the anti-incumbent president (Joko Widodo) sentiment. This paper aims to enhance discussion on Indonesian politics as well as Indonesia’s political parties, particularly the PKS.
Topic:
Islam, Religion, Elections, Domestic Politics, and Conservatism
Political Geography:
Indonesia and Asia

25. Domestic Value Added, Exports, and Employment: An Input-Output Analysis of Indonesian Manufacturing

Author:
Arianto A. Patunru
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The paper is motivated by the current emphasis on the share of domestic value added in exports (SVEX) as a policy criterion for export development strategy in developing countries. Our hypothesis is that the policy emphasis on SVEX, which harks back to the import substitution era, is inconsistent with the objectives of achieving economic growth with employment generation in this era of economic globalisation. We test this hypothesis by examining the relationship of the SVEX with both export-induced employment and the total domestic value added, or the contribution of exports to gross domestic product, by applying the standard input–output methodology to data from Indonesian manufacturing. Our findings do not support the view, widely held in policy circles, that industries characterised by a higher SVEX have the potential to make a greater contribution to employment generation and total domestic value added. The policy inference is that, in this era of economic globalisation, policy makers should focus on the export potential of industries in designing export development policy, rather than on the SVEX.
Topic:
Globalization, Labor Issues, Trade, and Global Value Chains
Political Geography:
Indonesia and Indo-Pacific

26. Midline Effects of a Randomized Controlled Trial to Increase the Utilization of Financial Services by Women Business Owners in Rural Indonesia

Author:
James C. Knowles
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This is the report of a midline evaluation of a randomized controlled trial to increase the utilization of saving and other financial services by women business owners in Indonesia. The trial was motivated by a recent law in Indonesia supporting the development of branchless banking services for a large unbanked rural population and by the results of several studies suggesting that it is possible to stimulate savings and improve a range of downstream outcomes with suitable interventions targeted to under-banked rural populations. The trial was conducted in 400 purposively selected rural and semi-urban villages in five districts of East Java province in which branchless banking services (including basic savings accounts accessible through mobile phones) were available. The randomized interventions supported by this trial include both supply-side treatments (higher agent incentives) and demand-side treatments (training and mentoring of female business owners). The data analyzed include both baseline and midline survey data on female and male business owners and branchless banking agents. Implementation of the trial was delayed due to difficulties in recruiting suitable agents in all 400 trial villages. Numerous supply-side problems, both technical and logistical, were also reported in the monitoring data. However, the midline results indicate that the interventions were successfully delivered, resulting in significant positive effects on key intermediate outcomes, including knowledge and use of mobile banking services and initial take up of a mobile basic savings account. Downstream effects indicate that the supply- and demand-side interventions, particularly in combination, increased women business owners’ savings, empowerment, self-confidence, and economic welfare.
Topic:
Women, Finance, Rural, and Financial Services
Political Geography:
Indonesia and Indo-Pacific

27. The Challenges of Universal Health Insurance in Developing Countries: Evidence from a Large-scale Randomized Experiment in Indonesia

Author:
Abhijit Banerjee, Amy Finkelstein, Rema Hanna, Benjamin A. Olken, Arianna Ornaghi, and Sudarno Sumarto
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
To assess ways to achieve widespread health insurance coverage with financial solvency in developing countries, we designed a randomized experiment involving almost 6,000 households in Indonesia who are subject to a nationally mandated government health insurance program. We assessed several interventions that simple theory and prior evidence suggest could increase coverage and reduce adverse selection: substantial temporary price subsidies (which had to be activated within a limited time window and lasted for only a year), assisted registration, and information. Both temporary subsidies and assisted registration increased initial enrollment. Temporary subsidies attracted lower-cost enrollees, in part by eliminating the practice observed in the no subsidy group of strategically timing coverage for a few months during health emergencies. As a result, while subsidies were in effect, they increased coverage more than eightfold, at no higher unit cost; even after the subsidies ended, coverage remained twice as high, again at no higher unit cost. However, the most intensive (and effective) intervention – assisted registration and a full one-year subsidy – resulted in only a 30 percent initial enrollment rate, underscoring the challenges to achieving widespread coverage.
Topic:
Government, Health, Health Care Policy, and Economy
Political Geography:
Indonesia and Southeast Asia

28. Tax Administration vs. Tax Rates: Evidence from Corporate Taxation in Indonesia

Author:
M. Chatib Basri, Mayara Felix, Rema Hanna, and Benjamin A. Olken
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Developing countries collect a far lower share of GDP in taxes than richer countries. This paper asks whether changes in tax administration and tax rates can nevertheless raise substantial additional revenue – and if so, which approach is most effective. We study corporate taxation in Indonesia, where the government implemented two reforms that differentially affected firms. First, we show that increasing tax administration intensity by moving the top firms in each region into “Medium-Sized Taxpayer Offices,” with much higher staff-to-taxpayer ratios, more than doubled tax revenue from affected firms over six years, with increasing impacts over time. Second, using non-linear changes to the corporate income tax schedule, we estimate an elasticity of taxable income of 0.59, which implies that the revenue-maximizing rate is almost double the current rate. The increased revenue from improvements in tax administration is equivalent to raising the marginal corporate tax rate on affected firms by about 23 percentage points. We suggest one reason improved tax administration was so effective was that it flattened the relationship between firm size and enforcement, removing the additional “enforcement tax” on large firms. On net, our results suggest that improving tax administration can have significant returns for developing country governments.
Topic:
Governance, Developing World, Reform, Business, and Tax Systems
Political Geography:
Indonesia and Southeast Asia

29. Can Transparency and Accountability Programs Improve Health? Experimental Evidence from Indonesia and Tanzania

Author:
Jean Arkedis, Jessica Creighton, Archon Fung, Stephen Kosack, Dan Levy, and Courtney Tolmie
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We assess the impact of a transparency and accountability program designed to improve maternal and newborn health (MNH) outcomes in Indonesia and Tanzania. Co-designed with local partner organizations to be community-led and non-prescriptive, the program sought to encourage community participation to address local barriers in access to high quality care for pregnant women and infants. We evaluate the impact of this program through randomized controlled trials (RCTs), involving 100 treatment and 100 control communities in each country. We find that on average, this program did not have a statistically significant impact on the use or content of maternal and newborn health services, nor the sense of civic efficacy or civic participation among recent mothers in the communities who were offered it. These findings hold in both countries and in a set of prespecified subgroups. To identify reasons for the lack of impacts, we use a mixed-method approach combining interviews, observations, surveys, focus groups, and ethnographic studies that together provide an in-depth assessment of the complex causal paths linking participation in the program to improvements in MNH outcomes. Although participation in program meetings was substantial and sustained in most communities, and most attempted at least some of what they had planned, only a minority achieved tangible improvements and fewer still saw more than one such success. Our assessment is that the main explanation for the lack of impact is that few communities were able to traverse the complex causal paths from planning actions to accomplishing tangible improvements in their access to quality health care.
Topic:
Health, Health Care Policy, Children, and Randomized Controlled Trials
Political Geography:
Africa, Indonesia, Tanzania, and Southeast Asia

30. Movement-building for Accountability: Learning from Indonesian Women’s Organizing

Author:
Nani Zulminarni, Valerie Miller, Alexa Bradley, Angela Bailey, and Jonathan Fox
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Accountability Research Center (ARC), American University
Abstract:
Perempuan Kepala Keluarga (Women-Headed Family Empowerment, known as PEKKA) is an Indonesian organization whose work is rooted in a vision of women’s collective power and participation for social change. Since 2001, PEKKA has addressed entrenched social exclusion through popular education, intensive leadership development, and social accountability and policy advocacy. Thousands of marginalized women have overcome stigma and entered the public sphere to engage in politically savvy, sustainable collective action. This emphasis on autonomous grassroots voice is grounded in 2,559 village-level cooperatives that are also scaled up to district, provincial and national levels (PEKKA 2017). PEKKA’s combination of national advocacy with grassroots organizing and countervailing power has influenced national social programs and broadened women’s access to the legal system. Improved access to the courts allows women to obtain legal documentation of their own civil status. This allows women to legalize a marriage that was valid under Islamic law or file a divorce case that will enable her to be recognized as the head of her family. The experience of gaining legal documents may build the knowledge and confidence required to obtain a birth certificate for their children, thereby securing opportunities and access to social services, including education, for the next generation. PEKKA engages in cross-sector alliance-building with local government, Islamic authorities, national policymakers, and international development agencies. This creates the political space and legitimacy needed to navigate complex cultural and political dynamics and deflect those forces opposed to public accountability and social inclusion. PEKKA’s grassroots members promote social accountability, monitoring access to services and solving problems through collaborative engagement with authorities—though without using those terms. What makes PEKKA’s approach to social accountability distinctive is its emphasis on building a broad, autonomous social base as the foundation for projecting grassroots women’s voices, combined with its multi-level approach to advocacy. PEKKA takes scale into account by engaging with authorities from the village level to national and international levels. PEKKA’s long-term efforts to build a broad-based organization with more than 31,447 members have brought fresh and reimagined language, analysis, and strategy ideas to the transparency, participation, and accountability (TPA) field. Key lessons from PEKKA’s accountability strategies include the following: 1. Address underlying institutional and cultural causes of social exclusion to create the confidence and space needed for women to exercise their voices and take collective action. 2. Use economic empowerment to build social foundations for autonomous voice and civic engagement. 3. Build countervailing power through action strategies that scale up member voice, leadership skills, and opportunities for participation in all aspects of the work. 4. Produce diverse forms of evidence for multiple audiences to advance advocacy strategies and maximize impact. 5. Cultivate allies and relationships inside and outside government, and at multiple levels, to expand impact and deflect opposition.
Topic:
Social Movement, Women, Accountability, and Community Organizing
Political Geography:
Indonesia and Southeast Asia

31. Indonesian Muslims in a Globalising World: Westernisation, Arabisation and Indigenising Responses

Author:
Martin van Bruinessen
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
In the two decades since the fall of the Suharto regime, one of the most conspicuous developments has been the rapidly increasing influence of religious interpretations and practices emanating from the Middle East and more specifically the Gulf states, leading observers to speak of the “Arabisation” of Indonesian Islam. In the preceding decades, the state had strongly endorsed liberal and development-oriented Muslim discourses widely perceived as “Westernised” and associated with secularism and Western education. Indonesia’s unique Muslim traditions have in fact been shaped by many centuries of global flows of people and ideas, connecting the region not just with the Arab heartlands of Islam and Europe but South Asia and China. What is relatively new, however, is the presence of transnational Islamist and fundamentalist movements, which weakened the established nation-wide Muslim organisations (Muhammadiyah, NU) that had been providing religious guidance for most of the 20th century. The perceived threat of transnational radical Islam has led to renewed reflection on, and efforts to rejuvenate, indigenous Muslim traditions.
Topic:
Islam, Religion, transnationalism, and Secularism
Political Geography:
United States, China, Indonesia, Asia, and Southeast Asia

32. Comparing the Governance of Islam in Turkey and Indonesia: Diyanet and the Ministry of Religious Affairs

Author:
Martin van Bruinessen
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
In spite of their overwhelmingly Muslim populations, Indonesia and Turkey are formally secular states though of different kind. However, both allocate a surprisingly high proportion of the state budget to the administration of Islam, considerably higher than most countries where Islam is the state religion. In Turkey during the years 1950-2000 and in Indonesia during the New Order period (1966-1998), the state invested heavily in the education of “enlightened” religious personnel and the dissemination of religious views that were compatible with the drive for modernisation and development. Turkey’s Directorate for Religious Affairs (Diyanet) controls a huge bureaucracy through which the state interacts with the pious conservative part of the population. Schools for the training of prayer leaders addressed the needs of the same segment of the population and were intended to facilitate the integration of these conservatives into the project of secular modernisation. However, these institutions had the unforeseen effect of enabling the social mobility of once marginalised conservatives, allowing them to gradually gain control of part of the state apparatus. Mutatis mutandis, very similar developments can be observed in Indonesia, where the Ministry of Religious Affairs (MORA) and the Council of Islamic Scholars (MUI) were expected to provide development-friendly religious guidance and prevent undesirable expressions of religiosity. After the fall of the Suharto regime, the MUI made itself independent of the government and instead became a vehicle through which various conservative religious groups strove to influence government policies, with various degrees of success.
Topic:
Islam, Religion, Social Movement, Secularism, and Modernization
Political Geography:
Europe, Indonesia, Turkey, and Asia

33. Fuel Competition in the Expanding Power Market Renewable Energy in Southeast Asia

Author:
Stephen Naimoli and Jane Nakano
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
This report provides a summary of the discussion from a CSIS roundtable held on April 13, 2018, as part of the CSIS-Pertamina Energy Initiative. The discussion brought together government, industry, and policy experts to explore the outlook for the region’s energy mix out to 2040, the state of renewable energy in Southeast Asia, and its role in the region’s energy priorities. This was the first in a series of events that will be convened this year to examine the role of renewable energy in Southeast Asia and its security, economic, and political importance in the Indo-Pacific. Southeast Asia is one of the fastest-growing regions in the world. The region’s gross domestic product (GDP) grew 66 percent from 2006 to 2015, and if all 10 countries were one economy, it would be the seventh-largest in the world. This growth is projected to increase, averaging just over 5 percent annually from 2018 to 2022. With economic growth comes demand for energy. From 2000 to 2016, economic growth in Southeast Asia drove a 70 percent increase in primary energy demand. Governments in Southeast Asia have implemented a range of policies and incentives to ensure they meet their energy demand. Renewable energy (wind, solar, geothermal, and sometimes hydro and biomass) is capturing an increasing, although not dominant, amount of attention from policymakers, investors, and the private sector as an important part of meeting this demand. Renewable energy’s share of the electric power mix is driven by a range of factors—the economics of power generation, efforts to reduce greenhouse gas emissions, energy security concerns, and concerns over local air pollution. While renewable energy is set to grow as a share of the region’s energy mix, there are indications that its potential contribution is much higher than is currently on track to be realized. Renewable energy increasingly competes on an economic basis in many countries against all fuels except coal, but sometimes political and socioeconomic factors stand in the way of improving their competitiveness in specific markets. The region is also attracting a great deal of outside investor interest. Countries from around the region and ever farther afield are investing in Southeast Asia’s energy sector because of the rapid growth experienced over the last decade and half, and their investment priorities, along with economics, shape their investment decisions in Southeast Asia. Energy policy and investment decisions are also being driven by the shifting nature of supply-and-demand balances in each country and the shifting domestic realities that come from becoming a net importer of specific fuels, such as in Indonesia. Many Southeast Asian countries have integrated low- or zero-carbon renewable energy into their energy planning efforts, and this report examines the dynamics of the power sector in Southeast Asia and how renewable energy competes with fossil fuel sources of electricity.
Topic:
Security, Energy Policy, Oil, Governance, Gas, Electricity, Renewable Energy, and Industry
Political Geography:
Indonesia, Asia, Southeast Asia, and Indo-Pacific

34. Enhancing the U.S.-Indonesia Strategic Partnership

Author:
Brian Harding and Andreyka Natalegawa
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The United States and Indonesia are natural partners. Despite our geographic distance, we have striking similarities. We are large, diverse, and democratic societies. We both seek an international order in the Indo-Pacific region based on rules that enable all countries to have a voice. Our shores each span two oceans, imbuing our countries with a deep maritime heritage and culture that shapes how we approach the world. When each plays its natural role as a leader in regional affairs, both parties benefit. In recognition of the great mutual benefit that a close U.S.-Indonesia partnership could bring, Presidents Barack Obama and Susilo Bambang Yudhoyono launched a comprehensive partnership in 2010 to build closer government-government, economic, and people-people ties between our two countries. Critically, the agreement created a framework for collaboration across a multitude of government departments and ministries under a joint commission co-chaired by the U.S. secretary of state and the Indonesian minister of foreign affairs. In 2016, under President Joko Widodo (Jokowi), the comprehensive partnership was elevated into a strategic partnership, further signaling the relationship’s importance to both countries. Yet despite having many common interests and recent high-level efforts to push the relationship forward, U.S.-Indonesia relations are not meeting their potential. Bilateral economic interaction is limited compared to the size of our economies. Official interaction is often bureaucratic and rarely strategic. And people-people relations, including of education exchanges, are minuscule considering that Indonesia and the United States are the third- and fourth-most-populated countries in the world. President Donald Trump’s political ascent has also created additional headwinds for U.S.-Indonesia relations. Candidate-Trump’s statements regarding the Muslim world caused unease in Indonesia and his policies as president toward Israel and Palestine have damaged Indonesian views of the United States. In Asia, the Trump administration’s framing of great-power competition with China and the administration’s nontraditional economic statecraft have created uncertainty in Jakarta. From Washington’s perspective, the Jokowi administration’s relative disinterest in playing a leading role in the Association of Southeast Asian Nations (ASEAN) and in the broader Indo-Pacific region has dampened enthusiasm in some quarters for investing in the relationship. Recognizing the importance of both the U.S.-Indonesia relationship and its continued underperformance, on May 3, 2018, the CSIS Southeast Asia Program convened a first annual bilateral, track 1.5 strategic dialogue in Washington, D.C., to inject new momentum into the relationship and to begin building deeper connectivity between policy experts in the two countries. This report outlines conclusions and recommendations that surfaced during the dialogue. However, the report reflects the opinions of the authors, and does not necessarily reflect those of the dialogue participants.
Topic:
International Cooperation, Culture, Maritime, and Economic Cooperation
Political Geography:
United States, Indonesia, North America, and Indo-Pacific

35. Conflicts in Indonesian Islam

Author:
Paul Marshall
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Hudson Institute
Abstract:
ay 20, 1998 (Patrick AVENTURIER/Gamma-Rapho via Getty Images) Conflicts in Indonesian Islam Paul Marshall In the three years following the 1998 economic crisis and the fall of President Soeharto, Indonesia endured economic dislocation, political turmoil, and religious violence that claimed thousands of lives. However, since this period of upheaval the country has been on a broadly upward path both politically and economically. Religious violence has tended to be sporadic and local, aside from the Bali bombings of 2002. Indonesia now has the largest economy in Southeast Asia and among the countries of the Organization of Islamic Cooperation. At 260 million people, the country, which has now had nearly two decades of largely free elections, is the third-largest democracy in the world. Some 88 percent of its population are Muslims, making it the largest Muslim-majority country in the world. Despite these positive political and economic trends, in recent years, Islamist movements have flourished in Indonesia. Indeed, their pressure was a major factor leading to the imprisonment of the Christian governor of Jakarta on charges of blasphemy in 2017. The moderate forms of Islam that have historically been hegemonic in Indonesia may now be under threat.
Topic:
Islam, Religion, Economy, and Islamism
Political Geography:
South Asia and Indonesia

36. Ministers For Foreign Affairs 1972-83

Author:
Melissa Conley Tyler and John Robbins
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Australian Institute of International Affairs
Abstract:
The Australian Institute of International Affairs (AIIA) is pleased to present the latest book in the Australian Ministers for Foreign Affairs series. In May 2016 the AIIA held a one-day forum to examine the achievements of Australia’s foreign ministers between 1972-83. This forum and publication is the third book in the AIIA’s Australian Ministers for Foreign Affairs series following on from Ministers for Foreign Affairs 1960-72 and R.G. Casey: Minister for External Affairs 1951-60.
Topic:
Foreign Policy, Cold War, Diplomacy, Human Rights, and International Cooperation
Political Geography:
United States, Japan, China, Indonesia, Asia, and Australia

37. Movement-building for Accountability: Learning from Indonesian Women’s Organizing

Author:
Nani Zulminarni, Valerie Miller, Alexa Bradley, Angela Bailey, and Jonathan Fox
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Accountability Research Center (ARC), American University
Abstract:
Perempuan Kepala Keluarga (Women-Headed Family Empowerment, known as PEKKA) is an Indonesian organization whose work is rooted in a vision of women’s collective power and participation for social change. Since 2001, PEKKA has addressed entrenched social exclusion through popular education, intensive leadership development, and social accountability and policy advocacy. Thousands of marginalized women have overcome stigma and entered the public sphere to engage in politically savvy, sustainable collective action. This emphasis on autonomous grassroots voice is grounded in 2,559 village-level cooperatives that are also scaled up to district, provincial and national levels (PEKKA 2017). PEKKA’s combination of national advocacy with grassroots organizing and countervailing power has influenced national social programs and broadened women’s access to the legal system. Improved access to the courts allows women to obtain legal documentation of their own civil status. This allows women to legalize a marriage that was valid under Islamic law or file a divorce case that will enable her to be recognized as the head of her family. The experience of gaining legal documents may build the knowledge and confidence required to obtain a birth certificate for their children, thereby securing opportunities and access to social services, including education, for the next generation. PEKKA engages in cross-sector alliance-building with local government, Islamic authorities, national policymakers, and international development agencies. This creates the political space and legitimacy needed to navigate complex cultural and political dynamics and deflect those forces opposed to public accountability and social inclusion. PEKKA’s grassroots members promote social accountability, monitoring access to services and solving problems through collaborative engagement with authorities—though without using those terms. What makes PEKKA’s approach to social accountability distinctive is its emphasis on building a broad, autonomous social base as the foundation for projecting grassroots women’s voices, combined with its multi-level approach to advocacy. PEKKA takes scale into account by engaging with authorities from the village level to national and international levels. PEKKA’s long-term efforts to build a broad-based organization with more than 31,447 members have brought fresh and reimagined language, analysis, and strategy ideas to the transparency, participation, and accountability (TPA) field. Key lessons from PEKKA’s accountability strategies include the following: Address underlying institutional and cultural causes of social exclusion to create the confidence and space needed for women to exercise their voices and take collective action. Use economic empowerment to build social foundations for autonomous voice and civic engagement. Build countervailing power through action strategies that scale up member voice, leadership skills, and opportunities for participation in all aspects of the work. Produce diverse forms of evidence for multiple audiences to advance advocacy strategies and maximize impact. Cultivate allies and relationships inside and outside government, and at multiple levels, to expand impact and deflect opposition.
Topic:
Social Movement, Women, Accountability, Community Organizing, and Grassroots Organizing
Political Geography:
Indonesia and Southeast Asia

38. A Political Economy Analysis Of The Southeast Asian Haze and Some Solutions

Author:
Parkash Chander
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
his paper studies the political economy of the Southeast Asian haze and discusses the obstacles that, unless overcome, could prevent a permanent and effective solution to this transboundary pollution problem, which originates in Indonesia. Following a cost-benefit analysis of the problem, the paper takes note of the weaknesses in Indonesia’s governance structure, which make it difficult to enforce national policies aimed at curbing the haze problem. It also puts forward a number of suggestions for strengthening the current policy regime for tackling the problem.
Topic:
Political Economy, Regional Cooperation, Governance, and Domestic Politics
Political Geography:
Indonesia, Asia, and Southeast Asia

39. Incident Prevention and Mitigation In The Asia Pacific Littorals: Framing, Expanding, and Adding to Cues

Author:
Graham Ong-Webb, Collin Koh, and Bernard Miranda
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper explores the possibility of South China Sea claimants and regional countries playing an active role in developing measures to prevent untoward incidents involving government (including naval and maritime law enforcement) and non-government vessels while political negotiations take place with respect to the proposed Code of Conduct between ASEAN and China. It argues that such a comprehensive incident prevention and mitigation plan must be multidimensional and multilevel in its approach, cascading from the political, strategic, operational, to tactical levels. This study breaks down into three main sections. The first examines the framing of the existing Code for Unplanned Encounters at Sea (CUES) and its expansion as well as any new prevention and mitigation initiatives. The center of gravity and theory of success for CUES must be at operational and tactical levels, this paper highlights, while also proposing that CUES should be expanded to include sub- surface and aerial- based actions as other potential triggers for unplanned encounters and unintended escalations at sea. The end-state calls for a comprehensive CUES in light of the multidimensional nature of the SCS maritime landscape. The second section of this paper assesses the prospects for an expanded CUES, focusing on maritime law enforcement and irregular forces. It examines the viability of expanding this mechanism through what this paper terms as “Phased” and “Blanket” Approaches, which is dependent on the regional political climate. The third, final section raises two proposals at the strategic level, and six proposals pegged at the operational and tactical levels of planning and activity to build on and enhance the existing slate of such mechanisms as CUES to promote navigational safety and risk reduction in regional waters.
Topic:
Regional Cooperation, Military Strategy, Non State Actors, Maritime, Conflict, and ASEAN
Political Geography:
China, Indonesia, Malaysia, Asia, Vietnam, Philippines, Cambodia, Singapore, Thailand, Laos, Myanmar, South China, and Brunei

40. 100 Days of Trump: What Should Asia Do?

Author:
Brendan Taylor, Greg Fealy, David envall, Bates Gill, Feng Zhang, Benjamin Zala, Michael Wesley, Shiro Armstrong, Anthony Bergin, David Brewster, Robin Davies, Jane Golley, Stephen Howes, Llewelyn Hughes, Frank Jotzo, Warwick McKibbin, Rory Medcalf, Tessa Morris-Suzuki, Steven Rood, and Matthew Sussex
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
Australian National University Department of International Relations
Abstract:
Once again, Trump has broken the mould. The 100-day mark is traditionally used to assess a new administration’s progress in advancing its policy agenda. With Trump, that’s impossible. In foreign policy at least, it’s more appropriate to ask whether at the 100-day mark the Trump administration is any closer to actually having a policy agenda. In no region is this question more pressing than in the Asia Pacific. The Asia Pacific is home to two-thirds of the world’s population, two-thirds of the global economy, and provides two-thirds of all global economic growth. It is the arena for the most serious challenge to America’s international role since it emerged as a global power a century ago. It is also the region that hosts six of the world’s nine nuclear states, and four of those have the fastest growing stockpiles and the most unpredictable nuclear doctrines. Few would dispute that for over 70 years, the United States has both stabilised the Asia Pacific’s fractious strategic affairs and underpinned its rapid economic development. And so the possibility of a radically different American role in the region instituted by the least conventional President in living memory is of vital interest not only to the residents of the region, but to the world as a whole. We asked experts from across the ANU College of Asia and the Pacific to watch and assess the impact of Trump on the Asia Pacific during the first hundred days of his Presidency – and how the region, and Australia should respond. It’s the sort of exercise that the largest and most comprehensive collection of expertise on the Asia Pacific on the planet can do with relish – and with a customary policy eye. The result is a fascinating and varied portrait of how the new administration has affected the world’s most dynamic region, and how the region is likely to react. When viewed together, these essays allow us to reflect on three questions that will be crucial for this region and the world over the next four years and perhaps beyond. What have we learned about Trump and his administration? What do the region’s reactions to Trump tell us about the regional role of the United States in the future? And what do these responses tell us about the Asia Pacific, and its likely trajectory in the near- and mid-term future?
Topic:
International Cooperation, Nuclear Weapons, Military Strategy, and Geopolitics
Political Geography:
United States, Japan, Indonesia, Asia, South Korea, North Korea, and Australia

41. Analysing Transformative Local Leadership in Indonesia

Author:
Alexander R. Arifianto
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
Since 2001, Indonesia’s political decentralisation has opened fresh avenues for a new generation of local government executives to be elected. These new local leaders tend to promote novel styles of political leadership that are can transform how public policy and services are delivered at the local level. This report profiles a number of Indonesian local transformative leaders, most notably Surabaya Mayor Tri Rismaharini and Bandung Mayor Ridwan Kamil. The report finds a number of characteristics that helped them to become transformative local leaders, including: an ability to develop popular legitimacy among their citizens, independence from political parties, ability to promote innovative policy to reform local public services, having strong political networks with senior politicians and other stakeholders, an ability to handle setbacks, and having political pragmatism. It is not yet known if these local “transformative leaders” can change the nature of national-level politics in Indonesia that is often characterised to be dominated by “oligarchic” party leaders. Nonetheless, they certainly have changed how politics and public policy are being done within their respective localities.
Topic:
Public Policy, Local, Services, and Decentralization
Political Geography:
Indonesia and Asia

42. A Threat to Stability? Islamic Extremism and Fundamentalism in Indonesia

Author:
Jacques Bertrand and Jessica Doedirgo
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Although the January 2016 Sarinah mall attacks in Jakarta demonstrate the need for continued vigilance, this paper argues that Islamic extremism and fundamentalism are not on the rise in Indonesia. In fact, Islamic extremism in Indonesia reached its height in the early 2000s, with radicalized groups participating in religious conflicts in Eastern Indonesia and carrying out large-scale terrorist attacks, such as the bombings in Bali in 2002. Since then, the capacity of the security apparatus has markedly improved, leading to the crippling of terrorist networks. Today, the majority of Islamists engage in above-ground non-violent activities and pose little threat to the country’s stability. This paper views fundamentalism and extremism as symptoms of broader problems in Indonesia, and argues that addressing these issues should help to further reduce the problems of religious fundamentalism and extremism.
Topic:
Security, Political Violence, Islam, Terrorism, Sectarian violence, and Violent Extremism
Political Geography:
Indonesia and Bali

43. Is Indonesia the Next China?

Author:
Wendy Dobson
Publication Date:
02-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper reviews Indonesia’s economic prospects and what these imply for a closer relationship with Canada. By posing the question “Is Indonesia the next China?,” the author suggests that Indonesia has the considerable economic potential envisaged by foreign investors, but conveys uncertainty as to whether Southeast Asia’s most populous country can make the changes necessary to realize that potential. A review of the economic record and comparison of China’s and Indonesia’s economic structures, endowments and institutions show major differences between the two countries. The paper further questions what it will take to realize Indonesia’s potential, finding the answers to be: human capital development; increased participation in the region’s global value chains; meeting the growing middle-class demand for modern services; raising productivity in agriculture and fishing; and increasing use of the Internet. Failure to make these changes will increase the chances of Indonesia’s growth in per capita incomes slowing and falling into the middle-income trap. Canada’s role will be to monitor closely how Indonesia tackles its five priorities at the same time as it responds to the opportunities to exploit Indonesia’s abundant natural resources, urbanization and its expanding consumer demand for modern services and educational opportunities.
Topic:
Economics, Emerging Markets, Human Welfare, International Trade and Finance, Natural Resources, and Regulation
Political Geography:
China and Indonesia

44. Ethnic inequality and community activities in Indonesia

Author:
Christophe Muller
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
For the first time in Indonesia, we jointly analyse several economic statistics and ethnic diversity indicators at national and local levels. Nationally, we find very high levels of economic inequality, measured from household asset values or consumption expenditure. In contrast, the levels of ethnic diversity, while non-negligible, are much lower, whether they reflect fractionalization, polarization, or ethnic inequality based on individual living standards. All ethnic inequality indicators surged after the Asian economic crisis. Ethnic inequality based on education is much lower and decreasing. In panel data models, individual participation in community activities is found to be much determined by local patterns of ethnic diversity. Different dimensions of ethnic diversity generate distinct effects. Ethnic polarization stimulates participation in strategic activities. Instead, ethnic fragmentation and ethnic inequality depress most local activities. Finally, we provide tentative explanations of local ethnic inequality in regressions that show a mixed pattern of socioeconomic influences.
Topic:
Inequality, Ethnicity, Diversity, and Community
Political Geography:
Indonesia and Southeast Asia

45. Could the G-20 Become Coherent on Climate?

Author:
Gwynne Taraska and Henry Kellison
Publication Date:
08-2016
Content Type:
Working Paper
Institution:
Center for American Progress - CAP
Abstract:
The G-20—a forum of 20 of the world’s largest economies—has a record of ambivalence on the topic of climate change. One case in point is the disconnect between the group’s efforts to address climate risks and its efforts to reduce the shortfall in global infrastructure investment. On one hand, the G-20 is aware that investing in projects that are high-carbon or vulnerable to the physical effects of rising temperatures carries risks that could have a destabilizing influence on the global economy. On the other hand, the G-20 is seeking to narrow the infrastructure gap in the absence of a guiding principle that infrastructure investments must be climate-compatible. Members of the G-20 Argentina Australia Brazil Canada China European Union France Germany India Indonesia Italy Japan Korea Mexico Russia Saudi Arabia South Africa Turkey United Kingdom United States In September 2016, world leaders will convene for the G-20 summit in Hangzhou, China. One focus of the climate agenda will be ensuring that the Paris Agreement takes effect in the near term. Negotiated by more than 190 nations and finalized in December 2015, the agreement set many collective goals, including limiting global warming to 1.5 degrees Celsius above preindustrial levels and ensuring that global financial flows are compatible with low-greenhouse gas development.
Topic:
Climate Change, Energy Policy, Environment, and International Cooperation
Political Geography:
Russia, United States, Japan, China, United Kingdom, Indonesia, Turkey, India, South Korea, France, Brazil, Argentina, Germany, Saudi Arabia, Australia, Italy, and Mexico

46. Paving the Way for Investment in Geothermal Power Deployment in Developing Countries

Author:
Thomas Adisorn
Publication Date:
05-2016
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
Geothermal power represents a unique source of electricity, for instance due to its low-carbon and base-load character. Some developing countries have a great potential for deploying geothermal power and, thus, for providing climate-friendly electricity to their economies and people. However, in order to reap the benefits of geothermal power substantial barriers must be overcome. By having screened the relevant literature, important hurdles to geothermal power deployment were defined: financing barriers, institutional barriers and uncertainty, lack of human resources, information barriers and social opposition. Through desk research carried out for Indonesia and Kenya, both of which are frontrunners in terms of installed geothermal power capacity, this study identifies options that contribute to overcoming aforementioned barriers. Hence, it offers recommendations primarily to developing countries in order to realize geothermal power production and, thus, to contribute to climate change mitigation.
Topic:
Climate Change, Development, Energy Policy, and Renewable Energy
Political Geography:
Kenya, Africa, Indonesia, and Asia-Pacific

47. Responding to Security Challenges in East Asia: Three Perspectives

Author:
John Ravenhill
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper examines the security context of the Australia- Indonesia relationship. East Asia presents a fundamental paradox for scholars of international relations. It has arguably more sources of interstate tension than any other region of the developing world. However, it has experienced no signi cant interstate con ict since the end of the China-Vietnam war in 1979. After brie y reviewing the principal security challenges that East Asia faces, the paper then looks at the three categories of explanations for the long peace in the region: hegemony and balancing; institutions and elite socialization; and economic interdependence. By early 2016, East Asia appeared to be facing the most unsettled security environment it has experienced for four decades. The new sources of interstate tensions present challenges for the mechanisms that have previously maintained peace in the region. Washington’s “pivot” to Asia has brought the United States into a more direct policy of balancing against China than in the past — but its sustainability and medium-term consequences remain unclear. Meanwhile, regional institutions, despite growing in numbers, are seemingly incapable of effectively addressing the new security challenges. A need for better leadership and initiatives is evident, both within the Association of Southeast Asian Nations (ASEAN) and in the broader regional context. Finally, recent developments in the region and elsewhere have illustrated the challenges of using economic interdependence as a lever over unwelcome state behaviour.
Topic:
International Security
Political Geography:
Indonesia and Australia/Pacific

48. Indonesia’s Defence Diplomacy: Harnessing the Hedging Strategy against Regional Uncertainties

Author:
Iis Gindarsah
Publication Date:
06-2015
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
Indonesia has been increasingly susceptible to recent geopolitical developments. Along with the rapid pace of regional arms modernisation and unresolved territorial disputes, it begins to ponder the impact of emerging great power rivalry to the country’s strategic interests. However, rather than pursuing a robust military build-up, Indonesian policymakers asserts that diplomacy is the country’s first line of defence. This paper argues that Indonesia’s defence diplomacy serves two agenda of hedging strategy — strategic engagement and military modernisation. This way, Indonesian defence and security officials seek to moderate the impact of geopolitical changes whilst maintaining the country’s defensive ability against regional uncertainties.
Topic:
Security, Defense Policy, Diplomacy, and Military Strategy
Political Geography:
Indonesia and Asia

49. The Power of Transparency: Information, Identification Cards and Food Subsidy Programs in Indonesia

Author:
Abhijit Banerjee, Rema Hanna, Jordan C. Kyle, Benjamin A. Olken, and Sudarno Sumarto
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Can governments improve aid programs by providing information to beneficiaries? In our model, information can change how much aid citizens receive as they bargain with local officials who implement national programs. In a large-scale field experiment, we test whether mailing cards with program information to beneficiaries increases their subsidy from a subsidized rice program. Beneficiaries received 26 percent more subsidy in card villages. Ineligible households received no less, so this represents lower leakage. The evidence suggests that this effect is driven by citizen bargaining with local officials. Experimentally adding the official price to the cards increased the subsidy by 21 percent compared to cards without price information. Additional public information increased higher-order knowledge about eligibility, leading to a 16 percent increase in subsidy compared to just distributing cards. In short, increased transparency empowered citizens to reduce leakages and improve program functioning.
Topic:
Government, Humanitarian Aid, Food, Political and institutional effectiveness, and Social Policy
Political Geography:
Indonesia and Southeast Asia

50. For Richer or Poorer: The capture of growth and politics in emerging economies

Author:
Alice Krozer
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
The emerging economies Brazil, China, India, Indonesia, Mexico, Russia, South Africa and Turkey - in short, the BRICSAMIT - have come to be considered the economic powerhouses of recent decades. Not only have these countries managed to reduce poverty; most have embarked on a steep economic growth path and play an increasingly influential role on the global scene. But today, all eight BRICSAMIT countries occupy the top ranks as some of the most unequal countries in the world. The price these countries - and millions of their citizens - pay for this is high. Excessive inequality hampers development prospects: negatively impacting growth potential, threatening poverty reduction, leading to mass migration flows and 'brain drain', and reducing opportunities for young people. This report, which was commissioned by civil society networks across the BRICSAMIT countries, aims to increase the urgency to tackle the structural causes of inequality by shedding light on the nature and scope of the issue in the BRICSAMIT, and the economic, political and social consequences these countries are now facing as a result.
Topic:
International Cooperation, Migration, Poverty, and Economic Inequality
Political Geography:
Africa, Russia, China, Europe, Indonesia, Turkey, Asia, South Africa, Brazil, South America, and Mexico