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101. How to make Indonesia’s sovereign wealth fund work

Author:
Kyunghun Kim
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The Indonesian government has established a sovereign wealth fund: the Indonesia Investment Authority (INA). Unlike many other sovereign wealth funds that manage large national savings, INA seeks to attract foreign co-investors to help fund economic development. INA’s near-term role is to purchase assets from heavily-indebted infrastructure-related state enterprises to improve their financial health and allow them to carry out further development projects. INA’s corporate governance arrangements are reasonable on paper. Much will depend on implementation. INA has attracted interest from a variety of international financiers, including state-backed investors from the United States, Japan, United Arab Emirates, and China. Clarifying INA’s investment goals and strengthening external monitoring mechanisms could help attract greater interest.
Topic:
Sovereign Wealth Funds, Economy, Investment, and Corporate Governance
Political Geography:
Indonesia and Southeast Asia

102. The Pandemic Exposes and Exacerbates Existing Problems of Inequality and Polarization

Author:
Joshua Kurlantzick
Publication Date:
01-2022
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
During the COVID-19 pandemic, while some democracies (such as Canada and Australia) have been able to respond effectively, the five large democracies of the United States, Brazil, India, Indonesia, and the Philippines have suffered severe effects on public health. In this commentary, Joshua Kurlantzick, a Senior Fellow for Southeast Asia at the Council on Foreign Relations, explains how social and economic inequalities in these countries are the cause of their ineffective responses to the pandemic. He then points out how populist politicians in these countries have exacerbated inequality during the pandemic with their rhetoric and policy. The author then argues that despite political, economic, and social problems in these countries, leaders have an opportunity to alleviate inequality through major democratizing reforms, as there is a public sentiment of wanting to work together to overcome the pandemic.
Topic:
Democracy, Inequality, Populism, Public Health, and COVID-19
Political Geography:
Indonesia, India, Brazil, Philippines, and United Nations

103. Democratic Backsliding in Indonesia

Author:
Luky Sandra Amalia
Publication Date:
01-2022
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Democracy in Indonesia is in a state of overall decline according to many indicators. The indices commonly point to the issues of weakened democratic institutions, increased discrimination and violence against minorities, and reduced civil liberties in Indonesia for the democratic decline. Luky Sandra Amalia, Associate Researcher at Research Center for Politics, National Research and Innovation Agency, argues that corrupt political officials who have made efforts to weaken the Corruption Eradication Commission (KPK), increase in identity politics for political gain, and the reduced space for freedom of speech are some specific factors that have resulted in this democratic backsliding.
Topic:
Corruption, Democracy, Violence, Civil Liberties, and Democratic Backsliding
Political Geography:
Indonesia and Southeast Asia

104. Indo–French Defence Cooperation in the Light of Regional Security Balance in South Asia

Author:
Mukesh Shankar Bharti
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The article aims to describe the regional security challenges to India in South Asia. Since the partition of India in 1947, the country has continuously been under external threat as a form of proxy warfare and terrorism. For this purpose, the article highlighted the core hotspots where India has major border issues with China in the Himalayan terrain. India has been facing a bigger security challenge from China and Pakistan in the South Asia region. This article analyses the defence ties between India and France in the context of security. India's neorealist approaches expand its strategic partnership in global politics. Therefore, India has been getting strategic support from the French side whenever India seeks support in a critical situation. The article uses the methods of case study and discourse analysis to answer the question and find out the study's relevance. As a result of severe security threats, India had to negotiate the purchase of defence equipment from France. India had to buy Rafael fighter jet, submarine and other heavy military weapons. Indo-French relations are stronger than in the past and will develop as friendly relations in the future.
Topic:
Security, Defense Policy, Diplomacy, Bilateral Relations, and Regionalism
Political Geography:
South Asia, Indonesia, Asia, and France

105. The Jakarta-Bandung High-Speed Railway and the Future of the Belt and Road Initiative

Author:
William Yuen Yee
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On the sidelines of the G20 Summit in Bali, Indonesia, Chinese President Xi Jinping and Indonesian President Joko “Jokowi” Widodo watched over a video livestream as the Jakarta-Bandung high-speed railway (HSR) sped through its first trial run between Tegalluar Station and Casting Yard No. 4 (Antara, November 21). Yet the smiles plastered across the faces of the two world leaders belied the fraught, winding journey of the railway until this point, as well as the uncertainties surrounding its future. Upon completion, the 142-kilometer (88 mile) railway will connect Indonesia’s current capital city, Jakarta, with its fourth largest city, Bandung. Chinese state media has called it one of the “flagship” projects of China’s ambitious Belt and Road Initiative, a global infrastructure development strategy widely viewed as the signature foreign policy project of Xi Jinping’s administration (Xinhua, November 16). After all, it was in a speech in Jakarta in 2013 that Xi first unveiled one of the BRI’s cornerstone development programs to bolster infrastructure connectivity—the 21st Century Maritime Silk Road (ASEAN-China Centre, October 2, 2013).
Topic:
Infrastructure, Belt and Road Initiative (BRI), and Railways
Political Geography:
Indonesia and Southeast Asia

106. Counterinsurgency, Emergency, and Civil-Military Relations in Indonesia

Author:
Norman Joshua
Publication Date:
03-2022
Content Type:
Journal Article
Journal:
Journal of Advanced Military Studies
Institution:
Marine Corps University Press, National Defense University
Abstract:
The Indonesian Armed Forces (TNI) has responded to a variety of national emergencies in Indonesia since 1945. This article argues that in Indonesia, the military role in emergencies is shaped by the long tradition of counterinsurgency. This article examines how historical experiences, military doctrine, and legal frameworks shaped civil-military relations in Indonesia, particularly regarding the military’s role in emergency management.
Topic:
Counterinsurgency, Crisis Management, Army, Civil-Military Relations, and Emergencies
Political Geography:
Indonesia and Southeast Asia

107. Mediating effect of Indonesia’s public trust on national security from the sense of safety, knowledge, and willingness to participate in state defence efforts

Author:
Dadang Mas Bakar, Syamsunasir, and Agus Adriyanto
Publication Date:
12-2021
Content Type:
Journal Article
Journal:
Security and Defence Quarterly
Institution:
War Studies University
Abstract:
Several studies that focus on the willingness to participate show that trust is a vital variable in mediating a person’s disposition to do so. This study examines the role of public trust in national security as a mediating variable of a sense of security and knowledge of the willingness to participate in state defence efforts. The data was collected via a questionnaire distributed to 435 respondents across Indonesia. We used a simple random sampling method; we then analysed using LISREL with Structural Equation Model (SEM). We found that trust cannot mediate a sense of safety and knowledge on the willingness to participate. An exciting finding was that knowledge affects trust, but sense of safety does not affect trust. This is interesting because it contradicts many studies related to political trust, when the willingness to participate is directly influenced by a sense of security and knowledge related to national security. Thus, to increase the willingness to participate in state defence efforts, it is necessary to increase the community’s sense of security and knowledge related to national security. In this case, we recommend providing education related to defence and security to the community and increasing the community’s sense of security.
Topic:
Defense Policy, National Security, Participation, and Trust
Political Geography:
Indonesia and Southeast Asia

108. Legal Identity and Statelessness in Southeast Asia

Author:
Christoph Sperfeldt
Publication Date:
01-2021
Content Type:
Commentary and Analysis
Institution:
East-West Center
Abstract:
Millions of people worldwide are stateless or do not have proof of their legal identity. As a result, they face daily obstacles from lack of access to a range of social, political, and economic rights. Around 40 percent of the identified stateless population live in the Asia Pacific region, with the majority of them residing in the countries of Southeast Asia. While some of these people are refugees or migrants, most belong to minorities living in the country where they were born. Their lack of proof of nationality or other forms of legal identity poses significant challenges to human rights, governance, and development. International conventions aim at improving their status, but have been poorly subscribed. Much of the work to solve the problems will have to be done at the national level, where interest is increasing. Since the forced mass exodus of Rohingya from Myanmar, many have reached the shores of Malaysia and Indonesia, driving home the implications of unresolved situations of statelessness.
Topic:
Human Rights, Citizenship, Stateless Population, and Nationality
Political Geography:
Indonesia, Malaysia, Asia, and Southeast Asia

109. Indonesia: Political and institutional effectiveness

Publication Date:
04-2021
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Politics, Background, Forecast, and Political and institutional effectiveness
Political Geography:
Indonesia

110. Indonesia: Political forces at a glance

Publication Date:
04-2021
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Politics, Summary, Background, and Political forces at a glance
Political Geography:
Indonesia

111. Merger Review Regimes in the ASEAN Region and Case Analysis of Grab-Uber Merger

Author:
Yungshin Jang and Gu Sang Kang
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In 2018, the largest yet cross-border M&A deal between digital platforms in Southeast Asia was reached, namely the Grab-Uber M&A case. The local digital platform Grab consolidated the regional operations of San Francisco, California-based Uber, a development which had significant effects on competition and consumer welfares in the Southeast Asia digital market. The competition authorities in the region independently initiated their investigation and started to deliberate the merger case to determine the anti-competitive effects on their domestic market, and to decide whether this transaction should be restricted or approved. Even though the two merging and merged firms completed their transactions, each authority applied different logic and imposed different remedies in deciding the case. Authorities in some member states such as Singapore and the Philippines decided that the Grab-Uber merger was anti-competitive, while others such as Indonesia and Viet Nam considered the merger not anti-competitive. Upon this backdrop, this article reviews the competition policies and laws of four major ASEAN countries – Indonesia, Singapore, Viet Nam, and the Philippines – from institutional and legal perspectives, focusing on M&A review regimes. Then, we briefly introduce how these com-petition authorities decided on the Grab-Uber merger case, also analyzing the competition effects of the case on the ride-hailing market in the countries. Based on the analysis results, we propose overseas competition policies for Korea.
Topic:
Markets, Economy, Business, ASEAN, Economic Competition, and Mergers and Acquisitions
Political Geography:
Indonesia, South Korea, Vietnam, Philippines, and Singapore

112. Mediums and Magical Things: Statues, Paintings, and Masks in Asian Places

Author:
Laurel Kendall, Lesley Sharp, Max Moerman, and Myron L. Cohen
Publication Date:
10-2021
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
Paintings, statues, and masks—like the bodies of shamans and spirit mediums—give material form and presence to otherwise invisible entities and sometimes they are understood to be enlivened, agentive on their own terms. This book explores how magical images are expected to work with the shamans and spirit mediums who tend and use them in contemporary South Korea, Vietnam, Myanmar, and Bali, Indonesia. It considers how such things are fabricated, marketed, cared for, disposed of, and sometimes transformed into art market commodities and museum artifacts. The two discussants approach this discussion of animated images from two different but intersecting directions. Max Moerman is a scholar of Japanese religion whose work focuses on visual and material representation. Lesley Sharp is a medical anthropologist with an interest in material culture whose recent work has focused on organ transplants and related questions of “life” and “death.” As moderator, Myron Cohen brings a broad knowledge of East Asian popular religion. The event is organized by the Weatherhead East Asian Institute and cosponsored by the New York Southeast Asia Network.
Topic:
Religion, Arts, Culture, Spirituality, Museums, Magic, and Mediums
Political Geography:
Indonesia, Asia, South Korea, Vietnam, Myanmar, and Bali

113. 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

114. The Terrorist Threat Forecast in 2021

Author:
Liu Chunlin and Rohan Gunaratna
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
The pandemic year 2021 is likely to witness an overall decline in global terrorism. While the threat grew in conflict zones, it diminished off-the-battlefields. However, threat groups worldwide are expanding in cyber space during the pandemic. From Indonesia to Pakistan, Muslim majority countries, Arabization and Islamization of Muslim communities during the pandemic is disrupting national cohesion. To prevent, counter and respond to the recent developments of key terrorist organizations, governmental and non-governmental partners should understand the threat. The intelligence services, law enforcement authorities and military forces should move from counter terrorism cooperation to collaboration and partnership. Working with community, academic and private sector partners, governments should build the higher strategic and ground level operational and tactical capabilities.
Topic:
Terrorism, Cybersecurity, Al Qaeda, Islamic State, Pandemic, and COVID-19
Political Geography:
Pakistan, Afghanistan, Indonesia, and Global Focus

115. The Link Between Global Value Chain Activity and Local Human Capital: Evidence from Indonesia’s Manufacturing Sector

Author:
Rashesh Shrestha and Deborah Winkler
Publication Date:
02-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
For developing countries, participation in global value chains (GVCs) provides an opportunity to expand domestic human capital. Since GVC firms require qualified workers to meet high production standards, they have an incentive to invest directly in their workers’ skills or to raise the demand for skilled workers, which indirectly creates an incentive for workers to enrol in vocational education. This paper explores the relationship between GVC activity and workers’ skills in Indonesia. It combines National Labor Force Survey (SAKERNAS) data with the Large/Medium Industry Survey (IBS) to construct a pooled cross-sectional data set of Indonesian manufacturing workers which takes into account measures of GVC activity at the district-sector-year level. The findings suggest that higher GVC activity in a worker’s district-sector-year is linked to a higher likelihood of vocational education of individual workers. A separate panel data analysis at the district level confirms the positive relationship between GVC activity and human capital. Finally, the results indicate that the wage premium for vocational education is higher in districts with greater intensity of GVC activity.
Topic:
Development, Education, Training, Manufacturing, Industry, and Global Value Chains
Political Geography:
Indonesia, Asia, and Southeast Asia

116. Fuelling the Engines of Liberation with Cleaner Cooking Fuel

Author:
Tushar Bharati, Yiwei Qian, and Jeonghwan Yun
Publication Date:
02-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the staggered roll-out of the Indonesian Conversion to Liquefied Petroleum Gas (LPG) Programme, we show that a subsidy for the labour- and time-saving cooking technology increased female labour force participation. The programme also increased household consumption expenditure and the decision-making power of women in the household, especially in financial matters. A back-of-the-envelope calculation suggests that the benefits of switching to LPG far outweighed the costs to the households. Based on previous research, we conjecture that intra-household externalities and gender differences in preferences drive the low rates of adoption of cost-effective technology. The programme’s impact on the financial decision-making power of women suggests that subsidies which empower women, even if temporary, can encourage the adoption and sustained use of beneficial technology.
Topic:
Gender Issues, Science and Technology, Labor Issues, Women, and Family
Political Geography:
Indonesia, Asia, and Southeast Asia

117. COVID-19 and Socio-Economic Inequalities in Indonesia: A Subnational-level Analysis

Author:
Aloysius Gunadi Brata, Eusebius Pantja Pramudya, Esther Sri Astuti, Heffi Christya Rahayu, and Heronimus Heron
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines if COVID-19 has worsened socio-economic inequalities across provinces in Indonesia, and if it has affected the spatial disparity in provincial-level socio-economic indicators. Secondary provincial-level data are used from BPS for March 2015 to March 2020. Results indicate that provinces with more COVID-19 cases tend to have increased inequality in urban areas, but inequality in rural areas decreases, as measured by the Gini Index. Also, provinces with many COVID-19 cases tend to have a decrease in their poverty headcount ratios. Thus, COVID-19 may have various implications on the spatial inequality of the Gini Index and poverty headcount ratio.
Topic:
Inequality, Pandemic, COVID-19, and Socioeconomics
Political Geography:
Indonesia, Asia, and Southeast Asia

118. Tracking the Ups and Downs in Indonesia’s Economic Activity During COVID-19 Using Mobility Index: Evidence from Provinces in Java and Bali

Author:
Yose Rizal Damuri, Prabaning Tyas, Haryo Aswicahyono, Lionel Priyadi, Stella Kusumawardhani, and Ega Kurnia Yazid
Publication Date:
07-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
A timely and reliable prediction of economic activities is crucial in policymaking, especially in the current COVID-19 pandemic situation, which requires real-time decisions. However, making frequent predictions is challenging due to the substantial delays in releasing aggregate economic data. This study aims to nowcast Indonesia’s economic activities during the COVID-19 pandemic using the novel high-frequency Facebook Mobility Index as a predictor. Employing mixed-frequency, mixed-data sampling, and benchmark least-squares models, we expanded the mobility index and used it to track the growth dynamics of the gross regional domestic product of provinces in Java and Bali and performed a bottom-up approach to estimate the aggregated economic growth of the provinces altogether. Our results suggested that the daily Facebook Mobility Index was a considerably reliable predictor for projecting economic activities on time. All models almost consistently produced reliable directional predictions. Notably, we found the mixed data sampling-autoregressive model to be slightly superior to the other models in terms of overall precision and directional predictive accuracy across observations.
Topic:
GDP, Economy, Mobility, Pandemic, and COVID-19
Political Geography:
Indonesia, Asia, and Southeast Asia

119. The EU–China Comprehensive Agreement on Investment: Lessons Learnt for Indonesia

Author:
Yan Lili Ing and Junianto James Losarili
Publication Date:
08-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The European Union (EU) and China have recently reached an agreement: the EU–China Comprehensive Agreement on Investment (CAI). As one of the most recent investment agreements concluded by the EU, the paper aims to assess specific concessions made in the agreement, and provides lessons learnt for Indonesia on the ongoing negotiations of the Indonesia–EU free trade agreement, the Comprehensive Economic Partnership Agreement (IEU CEPA). The paper will present an overview of the main areas covered under the CAI, assess the potential impacts of the CAI on EU investment into Indonesia, and set out lessons that can be learnt from the CAI.
Topic:
Economics, International Cooperation, International Trade and Finance, European Union, and Investment
Political Geography:
China, Europe, Indonesia, and Asia

120. Policy Strategies to Strengthen the Travel and Tourism Sectors from the COVID-19 Pandemic Shocks: A Computable General Equilibrium Model for the Indonesian Economy

Author:
Irlan Adiyatma Rum
Publication Date:
09-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The travel and tourism sectors have become the most vulnerable sectors to the COVID-19 pandemic. Studies have shown that most tourist-destination countries will experience economic shocks due to the pandemic. This study analyses the impact of the COVID-19 pandemic shock and the implications of policies taken by the government to strengthen the travel and tourism sectors. As the largest travel and tourism economy in ASEAN, this study uses Indonesia as a case study. It uses a computable general equilibrium (CGE) model using a detailed national input–output table for the creative sectors. The study develops baseline scenarios (low and lower-middle recovery), general policy scenarios (moderate and highly effective support) and specific policy scenarios for the travel and tourism sectors. Through changes in export demand, the impact of the pandemic depends on the existing conditions and policy interventions. The pandemic causes the nominal gross domestic product at the national level to decline by an interval of [–1.99%, –2.97%] and for tourism and travel sectors by [–6.81%, –10.38%] depending on the recovery period. If the recovery is low (all annual inbound tourism expenditure is removed), the Indonesian macroeconomy will be worse than under the lower-middle recovery, given the same government intervention. Thus, effectiveness becomes an important factor for creating a better impact. Adding capital stimulus into the tourism sector helps to further reduce output decline in the travel and tourism sectors, but it is not enough to help the economy recover from the pandemic. The best policy strategy is to make sure that the mitigation plan will be implemented effectively.
Topic:
Tourism, Economy, Public Health, Pandemic, COVID-19, and Travel
Political Geography:
Indonesia and Asia

121. Education for All? Assessing the Impact of Socio-economic Disparity on Learning Engagement During the COVID-19 Pandemic in Indonesia

Author:
Samuel Nursamsu, Winsu Harto Adiwijoyo, and Anissa Rahmawati
Publication Date:
10-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper attempts to shed light on the impact of socio-economic disparity on learning engagement during the COVID-19 pandemic in Indonesia. Utilising search intensity data from Google Trends, school data from Dapodik (Education Core Database), and socio-economic data from the National Socioeconomic Survey, we conduct descriptive analysis, an event study, and difference-in-difference estimations. First, school quality differs in terms of the regions’ development level, especially between western and eastern Indonesia. However, densely populated and well-developed areas generally have lower offline classroom availability. In addition, the quality of public schools is generally lower than private schools. Second, our estimation results show that only online-classroom related search intensity that increased significantly after school closures on 16 March 2020, not in self-learning related search intensity. Further the analysis shows that socio-economic disparity within provinces widens the gap in online learning engagement, albeit with weak evidence from per capita expenditure. Interestingly, provinces with a higher inequality and rural population tend to have higher self-learning related search intensity due to students’ necessity to compensate for low learning quality from schools. In addition, technology adoption does not seem to give much of an increase to online-classroom related search intensity but contributes to lower self-learning related search intensity due to increased academic distraction. Our study provides evidence for the Indonesian government to make more precise policy in improving learning quality during the pandemic.
Topic:
Education, Children, Inequality, Pandemic, COVID-19, Socioeconomics, and Public Schools
Political Geography:
Indonesia and Asia

122. Spillover Effects of Social and Economic Interactions on COVID-19 Pandemic Vulnerability Across Indonesia’s Regions

Author:
Ernawati Pasaribu, Puguh B. Irawan, Tiodora H. Siagian, Ika Yuni Wulansari, and Robert Kurniawan
Publication Date:
10-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This research study focuses on measuring the possible spillover effects of socio-economic interactions on COVID-19 pandemic vulnerability across Indonesia’s regions by utilising a spatial simultaneous model. The COVID-19 pandemic vulnerability level here is used to indicate the extent to which a region is susceptible to the spreading COVID-19 pandemic, as determined by not only the region’s COVID-19 related epidemiological factors but also by its relevant socio-demographic and economic aspects, housing, environmental health, and availability of health facilities. High COVID-19 pandemic vulnerability levels were mostly found in districts in Java Island and southern Sumatera, suggesting high population density and mobility in both regions. It was revealed that 31 districts have low COVID-19 risk levels (from epidemiological indicators-related measurements), but they have high COVID-19 vulnerability levels (from epidemiological and socioeconomic indicators-based measurements). Labour productivity was found to have a reciprocal relationship with COVID-19 vulnerability, proving that the COVID-19 pandemic has a significant impact on labour productivity and vice versa. On the other hand, regional independence affects COVID-19 vulnerability, but this does not apply the other way around. Moreover, this study has also proven that COVID-19 pandemic vulnerability levels have socio-economic spillover effects on neighbouring areas in Indonesia.
Topic:
Economics, International Cooperation, Pandemic, COVID-19, Socioeconomics, and Economic Integration
Political Geography:
Indonesia and Asia

123. Our Epistemological Crisis: "Ilmu Budaya" and "Two Cultures" Revisited

Author:
Donald K. Emmerson
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This talk on the subject of scientific research was delivered virtually on 1 November 2021 to mark the anniversary of the official opening on 1 November 1958 of what is now called the Faculty of Cultural Sciences at Padjadjaran University in suburban Bandung, Indonesia. In his remarks, Donald K. Emmerson recalls his experience as a student in Indonesia, discusses the rejection and subversion of the distinction between fact and opinion in what he calls “our epistemological crisis," and ends with comments on a different but related distinction: the institutional separation of the humanities from the sciences, as if they were two different spheres of thought and specialization.
Topic:
Science and Technology, Culture, Research, and Institutions
Political Geography:
Indonesia, Asia, and Indo-Pacific

124. The Role of Islam in Indonesian Foreign Policy: A Case of Susilo Bambang Yudhoyono Introduction

Author:
Aisyah Mumary Songbatumis
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
As Susilo Bambang Yudhoyono won the 2004 presidential election, it marked the end of Indonesia’s democratic transition era and experienced a dynamic change in foreign policy. The new international identity that viewed Islam as an asset was introduced by SBY, emphasizing the importance of moderate Islam as opposing extremism. The phenomenon of Islamic influence was not only the result of democratic consolidation domestically but also external factors such as the aftermath of 9/11 that portrayed Muslims as potential terrorists. For this reason, Indonesian foreign policy attempted to diminish such misconceptions and tried to be a peacemaker or a mediator in Muslim-related issues globally. To contextualize the analysis, the study focuses on the influence of Islam in Indonesian foreign policy towards the Palestinian-Israeli conflict and Pakistan. The mutual aspirations on the Palestinian statehood shared by both the government and the Muslim elements in society could be found, while religious sentiments were noticeable, as shown by the Muslim groups. In contrast, the influence of Islam in Indonesia-Pakistan relations, especially regarding the Kashmir dispute, was absent due to the difference in views of the government and the Muslim groups and constraining factors, including Indonesia’s national interest priority.
Topic:
Diplomacy, International Cooperation, Religion, Democracy, and Strategic Interests
Political Geography:
Indonesia and Asia

125. Forging a Bay of Bengal Community is the Need of the Hour

Author:
Sabyasashi Dutta
Publication Date:
05-2021
Content Type:
Special Report
Institution:
East-West Center
Abstract:
The Bay of Bengal, the world’s largest Bay, is strategically located in the Indian Ocean. On its western rim, lies the coastline of the Indian Peninsula and to its south, the island nation of Sri Lanka. To the east the bay connects key parts of Southeast Asia including Myanmar, Indonesia, Thailand as well as the Andaman Sea and the Malacca straits. At its very northern cusp lies Bangladesh, which is also the delta of the great rivers of Ganges, Brahmaputra, and Meghna. These rivers connect the Bay in a unique “mountain to sea” ecosystem with natural connectivity to the Bay for the landlocked states of North Eastern India and the Himalayan nations of Nepal and Bhutan. In turn, the monsoon currents which regulate the climate of the Bay of Bengal gather moisture from the bay and dictate precipitation patterns in the mountains and plains in the hinterland. The hills of Meghalaya in North Eastern India record the highest rainfall in the world as they are first hit by the monsoon clouds that gather moisture from the Bay. An interlace of snow and rain fed rivers, their basins, and their estuaries at the Bay nurture a large diversity of aquatic and terrestrial wildlife flora and fauna (e.g., the Sunderban mangroves spanning parts of Myanmar, India and Bangladesh) and offer a great diversity of agricultural produce. The Bay and the countries along and connected by its littoral are a compact maritime sub region connected at the level of economy and ecology, having an enormous impact on the hundreds of its inhabitant who live on its coasts and in its hinterlands.
Topic:
Economy, Maritime, and COVID-19
Political Geography:
Indonesia, Sri Lanka, Thailand, Myanmar, Indian Ocean, Indo-Pacific, and Bay of Bengal

126. 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

127. Indo-Iran Relations in the Changing Regional Environment Implications for South Asia

Author:
Shehzada Afzal and Nazir Hussain
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
International relations are determined by systemic and structural factors at the global, regional and state/domestic levels. Inter-state relations require common interests, shared goals, inter-related threat perception and eminent security challenges. Indo-Iranian relations have been on a progressive trajectory since the beginning of current century; their relations are focussed on political, economic, security and strategic spheres. As an emerging major power, India intends to enhance its influence across regions. This paper attempts to examine how Indo-Iranian relations have shaped up over the years. How convergence of interests by these two far-off neighbors have developed to join and cooperate in economic, political and social domains. For Pakistan, any development on its eastern and western borders holds important bearing on its national security; therefore, what new challenges are posed by Indo-Iranian relations in the changing regional environment of South Asia.
Topic:
Security, Diplomacy, International Cooperation, Bilateral Relations, Peace, and Regionalism
Political Geography:
Iran, South Asia, Indonesia, Middle East, and Asia

128. Gender and Extractive Governance: Lessons from Existing Legal and Policy Frameworks

Author:
Aubrey Menard and Elizabeth Moses
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Greater gender equality accompanies economic advancement. However, in countries rich in oil, gas and minerals, economic advancement has not served women and gender minorities as well as men. On the contrary, gender inequality is more pronounced in countries significantly reliant on the extractive sector. The negative impacts of overreliance on the extractive sector appear at both the national level and the sites of major extraction projects. While the gendered issues related to the extractive sector have been broadly acknowledged, efforts to address them are not well developed. This report focuses on gender and governance of the extractive industries, and is part of the larger Gender and Extractives project, funded by the Open Government Partnership (OGP) and the World Bank Multi-Donor Trust Fund, and executed by the Natural Resource Governance Institute (NRGI) in partnership with the World Resources Institute (WRI). It aims to inform a new generation of gendered OGP commitments in relation to the extractive sector, building on the momentum created by the Break the Roles campaign and the growth in attention now paid to advancing gender equality in the extractive sector. The research examined the legal and policy frameworks in 12 OGP countries: Argentina, Canada, Colombia, Ghana, Indonesia, Kenya, Morocco, Mongolia, Nigeria, Peru, Sierra Leone and Tunisia, identifying 62 laws, policies, regulations, guidelines and other official documents that referenced the extractive sector and gender or women.
Topic:
Economics, Gender Issues, Oil, Natural Resources, Governance, and Gas
Political Geography:
Kenya, Indonesia, Canada, Mongolia, Argentina, Colombia, Sierra Leone, Nigeria, Morocco, Tunisia, Peru, and Ghana

129. Navigating Rough Water: Indonesia’s Approach to Domestic and Regional Conflicts

Author:
Gabriel Lele
Publication Date:
06-2021
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
While many of the conflicts that have unfolded in Indonesia have been somewhat resolved, the conflict revolving around separatist movements in Papua remains unresolved. Upon its dawn, the Papua conflict has claimed thousands of lives, most of which are those of civilians. In this Issue Briefing, Gabriel Lele, Senior Lecturer at Universitas Gadjah Mada, explains the paths Indonesia has taken to resolve conflicts both in the domestic and regional realms. From a domestic standpoint, the author claims that the Indonesian government has failed to properly diagnose the conflict and that its measures have been futile as it was unable to take an accommodative approach towards the issue. From a regional standpoint, Indonesia utilized two strategies – litigation and dialogue. While the latter strategy contributed to sustainable political stability in the region, it has failed to yield significant progress towards conflict resolution. In this regard, the author claims that Indonesia should design more approaches that are more accommodative and apply more critical engagement.
Topic:
Democracy, Conflict, Separatism, and ASEAN
Political Geography:
Indonesia and Southeast Asia

130. Populism and the Pandemic in Southeast Asia

Author:
Paul D. Kenny
Publication Date:
09-2021
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Southeast Asian countries that are within close proximity to China were immediately affected by the spread of COVID-19 virus. Paul D. Kenny, Professor at the Australian Catholic University discusses the role of populism in public health responses to the virus and the reciprocal effect of the pandemic on the fate of populists in the region focusing on the Philippines and Indonesian cases. He argues that while the two governments took different responses to the pandemic crisis, both measures led to similar results in terms of how it affected support for the government. While President Duterte responded aggressively towards the pandemic with the issuance of Proclamation 922, President Jokowi’s response was substantially less coercive than that of Duterte’s. Professor Kenny states that both countries, in their current state, have seen similar results — support for both presidents in their respective countries remain considerably high. Nonetheless, the author adds that the continuing decline in Philippines’ economy may hamper his efforts in securing presidency.
Topic:
Government, Economy, Populism, Public Health, and COVID-19
Political Geography:
China, Indonesia, Philippines, and Southeast Asia

131. The United States and Indonesia: Re-converging Security Interests in the Indo-Pacific

Author:
Jeffrey Ordaniel
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Pacific Forum, with support from the Defense Threat Reduction Agency (DTRA) and in collaboration with the Centre for Strategic and International Studies Indonesia (CSIS), organized the inaugural Track 2 U.S.-Indonesia Security Dialogue on June 1-3, 2021. Thought leaders from the United States and Indonesia, including scholars, policy experts, and retired military and government officials, participated in the dialogue. This report contains the general summary of the discussions. The recommendations contained in this report, unless otherwise specifically noted, were generated by the discussions as interpreted by the Principal Investigators. This is not a consensus document. Both the agenda and participant list are included in the appendix; all participants attended in their private capacity.
Topic:
Security, Foreign Policy, Defense Policy, and Strategic Autonomy
Political Geography:
Indonesia, North America, United States of America, and Indo-Pacific

132. How Chinese COVID-19 Vaccines Will Impact China-Indonesia Vaccine Diplomacy

Author:
Jason Hung
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This research will discuss how Indonesia’s final-stage Sinovac clinical trial results will play a leading role in determining China’s diplomatic power amid the COVID-19 pandemic. The paper analyzes how vaccine diplomacy will impact China-Indonesia relations: if Sinovac proves inefficacious, Jakarta is unlikely to cut ties with Beijing but may consolidate relations with Washington. However, as the United States faces its own COVID-19 struggles, this paper examines how Beijing can continue to use vaccine diplomacy as leverage to strengthen and expand its influence in South China Sea (SCS) disputes with minimal interference from Washington. Additionally, the paper will evaluate how the reliability of China’s Sinovac vaccine—especially after Beijing’s supply of health care products to Europe were found to be of unsatisfactory quality—will affect the outcomes of vaccine diplomacy, determining whether Beijing can restore its reputation globally in order to facilitate bilateral or multilateral cooperation. Finally, the paper will assess how the outcome of China-Indonesia vaccine diplomacy will help determine China’s opportunities to compete with major Western powers in the global vaccine market in the long-term.
Topic:
Diplomacy, International Cooperation, Vaccine, and COVID-19
Political Geography:
China, Indonesia, and Asia

133. 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

134. Case Studies on the Role of Gender and Identity in Shaping Positive Alternatives to Extremisms

Author:
Rosalie Fransen, Melinda Holmes, Helena Gronberg, Stacey Schamber, and Shannon Foley Martinez
Publication Date:
10-2021
Content Type:
Case Study
Institution:
International Civil Society Action Network (ICAN)
Abstract:
The International Civil Society Action Network (ICAN), with the support of Global Affairs Canada, has developed a set of “Case Studies on the Role of Gender and Identity in Shaping Positive Alternatives to Extremisms,” in Cameroon, Indonesia, Jordan, Libya, Pakistan, Somalia, Sweden, and the United States. The case studies demonstrate how conducting a Gender-Based Analysis Plus (GBA+) improves understanding of the drivers, narratives and roles that engender extremisms and violent extremist activity. By profiling examples of peacebuilding, deradicalization, reintegration and counternarrative work in these contexts, the case studies emphasize how attention to gender and intersectional identities can improve the effectiveness of interventions to transform extremisms – not only by preventing or countering it, but by providing positive alternatives that enable people to realize a peaceful, pluralistic future. The case studies cover a number of themes relevant to contemporary preventing/countering violent extremism (P/CVE) and counterterrorism (CT) work, including countering white supremacist extremism, the role of masculinities in recruitment and disengagement, addressing trauma and deploying mental health and psychosocial support (MHPSS) approaches in reintegration and rehabilitation, and work with religious leaders to promote peaceful, pluralistic and gender-just interpretations of religious texts and traditions. The case studies are intended for use by practitioners and policymakers to guide them in conducting a gender analysis and in integrating responsiveness to gender and identity factors in policies and interventions.
Topic:
Education, Religion, Violent Extremism, Counter-terrorism, Women, Inequality, Trauma, Violence, Mental Health, White Supremacy, Identity, Political Participation, and Gender
Political Geography:
Pakistan, Africa, South Asia, Indonesia, Middle East, Libya, North Africa, Sweden, Jordan, Somalia, Southeast Asia, Cameroon, and United States of America

135. World economy: Liquidity injections buy time for vulnerable economies

Publication Date:
04-2020
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, Outlook, Forecast, and Finance outlook
Political Geography:
Uganda, Pakistan, Afghanistan, Bangladesh, Japan, China, Sudan, Indonesia, Turkey, Ukraine, Moldova, Canada, India, Mongolia, Kazakhstan, South Korea, Kuwait, Tajikistan, France, South Africa, Brazil, Argentina, Yemen, Sri Lanka, Germany, Cuba, Saudi Arabia, Romania, Hungary, Australia, Albania, Italy, Mozambique, Sierra Leone, Zimbabwe, Ethiopia, Mexico, Jordan, Bahrain, Singapore, Tunisia, Chile, Oman, Angola, Zambia, Ghana, New Zealand, Ecuador, Malawi, Namibia, Mauritius, Panama, Belarus, United States of America, Equatorial Guinea, Gabon, Seychelles, Democratic Republic of Congo, UK, Russian Federation, Syrian Arab Republic, Tanzania, United Republic of, Venezuela, and Bolivarian Republic of

136. 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

137. The Battle for the Soul of Islam

Author:
James M Dorsey
Publication Date:
10-2020
Content Type:
Commentary and Analysis
Institution:
Hudson Institute
Abstract:
It is not the caliphate that the world’s Muslim powerhouses are fighting about. Instead, they are engaged in a deepening religious soft power struggle for geopolitical influence and dominance. This battle for the soul of Islam pits rival Middle Eastern and Asian powers against one another: Turkey, seat of the Islamic world’s last true caliphate; Saudi Arabia, home to the faith’s holy cities; the United Arab Emirates, propagator of a militantly statist interpretation of Islam; Qatar with its less strict version of Wahhabism and penchant for political Islam; Indonesia, promoting a humanitarian, pluralistic notion of Islam that reaches out to other faiths as well as non-Muslim centre-right forces across the globe; Morocco which uses religion as a way to position itself as the face of moderate Islam; and Shia Iran with its derailed revolution. In the ultimate analysis, no clear winner may emerge. Yet, the course of the battle could determine the degree to which Islam will be defined by either one or more competing stripes of ultra-conservativism—statist forms of the faith that preach absolute obedience to political rulers and/or reduce religious establishments to pawns of the state.
Topic:
International Relations, Foreign Policy, Islam, Politics, and Ideology
Political Geography:
Russia, Iran, Indonesia, Turkey, Middle East, Asia, Saudi Arabia, Morocco, Qatar, and United Arab Emirates

138. 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

139. 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

140. 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

141. 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

142. 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

143. 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

144. Comparing the Perceptions of Indonesians and Malaysians toward the China’s Belt and Road Initiative: Facts and Trends

Author:
Yasmi Adriansyah and Yin Shi Wu
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
This article examines public perceptions in Indonesia and Malaysia regarding the China’s Belt and Road Initiative (BRI). In order to get a comprehensive picture of the subject matter, the article applies three perspectives, namely International Politics, Economy and Debt Trap, and Public Acceptance. The attachments of Indonesia (under Joko Widodo administration) and Malaysia (under Najib Razak administration) are analyzed, mainly by observing the perceptions of the political elites and opinion polls in these most populous Muslim countries. The findings show that both governments in the two countries had exhibited high inclination toward the BRI. Interestingly, their public show different attitudes and many people are against or at least critical of these policies. It therefore suggests that the pro-BRI policies of the governemnts must be managed with high care in order to balance the different interrests with the popular interests.
Topic:
Foreign Policy, Debt, and Belt and Road Initiative (BRI)
Political Geography:
China, Indonesia, and Malaysia

145. Modern Migration Pattern in Indonesia: Dilemmas of a Transit Country

Author:
Wahyuni Karikasari
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
The development of world politics has produced conflicts and war in several countries giving rise to a new form of migration, the migration from conflicts and war. This article analyzes the impact of the modern migration in Indonesia. It found that Indonesia is a transit country “invaded” by those migrants who pose serious dilemmas for humanitarian reasons. On the other hand, Indonesia has a limited obligations for dealing with migrants and refugees becasuse it is not part of the 1951 Convention relating to the Status of Refugees and of the following 1967 Protocol, and enconunter some thorny probloems such as some rejection from the local population and finally the limited ability to finance and hospitalize migrant and refugees. The article also explains that for solving the problem, cooperation with other parties, such as International Organizations, and Regional and Bilateral cooperation is needed.
Topic:
International Relations, Migration, Refugees, and Conflict
Political Geography:
Indonesia, Asia, and Southeast Asia

146. Rising in the East: A Regional Overview of the Islamic State’s Operations in Southeast Asia

Author:
Amira Jadoon, Nakissa Jahanbani, and Charmaine Willis
Publication Date:
07-2020
Content Type:
Special Report
Institution:
The Combating Terrorism Center at West Point
Abstract:
In 2016, the Islamic State acknowledged a series of pledges from Southeast Asian militant groups by declaring Isnilon Hapilon of the Abu Sayyaf Group to be the regional emir and encouraging local supporters to travel to the Philippines to wage jihad. Since 2016, a wave of Islamic State-linked attacks, including attempted and successful suicide attacks across the region, as well as the Marawi siege in 2017 by Islamic State-linked groups, has raised significant regional security concerns. Critical questions about the growing influence of the Islamic State in Southeast Asia, the interconnectedness of Islamic State affiliates, and the risks associated with returning fighters from Iraq and Syria remain unanswered. In the first of a four-part series on the Islamic State in Southeast Asia, this report sheds light on the overarching characteristics of Islamic State-linked operations across Indonesia, Malaysia, and the Philippines between 2014 and 2019, highlighting how the Islamic State’s arrival has affected regional militancy. Drawing on open-source materials, the report maps the characteristics and regional dispersion of Islamic State-linked activity in the region, providing regional and country-level context for the nature of the threat. Additionally, the report identifies six regional militant groups as the Islamic State’s operational affiliates, defined as groups that have claimed attacks concurrently with the Islamic State. The findings of the report draw attention to a marked increase in the use of Islamic State-linked suicide attacks and lethality in 2019, and significant numbers of failed and foiled attacks by Islamic State-affiliated or -inspired individuals in Indonesia and Malaysia. While the most important dimension of the Islamic State threat may be the existing militant infrastructure offered by its operational alliances in the Philippines and Indonesia, the threat in Malaysia exists in the form of independent plotters and radicalized individuals who present a pool of potential recruits for existing networks of militants in the region.
Topic:
International Cooperation, Terrorism, Non State Actors, Counter-terrorism, and Islamic State
Political Geography:
Indonesia, Malaysia, Asia, and Philippines

147. Indonesia's Economy: Between Growth and Stability

Author:
Roland Rajah
Publication Date:
08-2020
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Indonesia has much economic potential but the trade-off between growth and stability continues to bind its growth ambitions. Indonesian economic policy continues to prioritise stability over growth but the adequacy of economic growth has become the bigger issue. President Joko Widodo’s commendable pro-growth efforts have so far only stabilised Indonesia’s trajectory rather than boost it. Doing better will require reforms to be calibrated to make the trade-off between growth and stability less binding while enhancing productivity.
Topic:
Government, International Trade and Finance, Economy, and Economic Growth
Political Geography:
Indonesia and Asia-Pacific

148. Counter Terrorist Trends and Analyses (CTTA) – Volume 12 Issue 03: COVID-19 and Terrorism

Author:
Raffaello Pantucci, Abdul Basit, Kyler Ong, Nur Aziemah Azman, V. Arianti, and Muh Taufiqurrohman
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
Counter Terrorist Trends and Analysis
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The Coronavirus Disease 2019 (COVID-19) pandemic has redefined almost all spheres of modern life. While states around the world are redeploying their financial resources, energies and military capabilities to cope with the challenge of the coronavirus, terrorist groups across the ideological spectrum have positioned themselves to exploit the gaps created by these policy re-adjustments. Terrorist groups are milking people’s fears amid confusion and uncertainty to promote their extremist propagandas. The rearrangement of global imperatives will push counter-terrorism and extremism down the priority list of the international community. Anticipating these policy changes, existing counter-terrorism frameworks and alliances should be revisited to devise cost-effective and innovative strategies to ensure continuity of the fight against terrorist groups. With these considerations in mind, this special issue of the Counter Terrorist Trends and Analyses (CTTA) features four articles that identify and assess important security risks around COVID-19, given its far-reaching social, economic and geopolitical impact. In the first article, Raffaello Pantucci reasons that COVID-19 will have a deep-seated and prolonged impact across government activity, both in terms of the categorisation of risks, as well as the resources available to tackle other issues. Perceptions of risk around terrorist threats may shift, with states grappling with stark economic, social and political challenges. At the same time, security threats continue to evolve, and may even worsen. According to the author, some of the tools developed to deal with the pandemic can potentially be useful in tracking terrorist threats. However, resource constraints will require states, on a global scale, to think far more dynamically about how to adequately buffer much-needed security blankets both within and beyond their borders. In the second article, Abdul Basit outlines the opportunities and potential implications that COVID-19 has created for terrorist groups across the ideological divide. According to the author, terrorist groups have exploited the virus outbreak to spread racial hatred, doomsday and end-of-times narratives. Among jihadist groups, IS has taken a more totalitarian view of the coronavirus pandemic, while Al-Qaeda (AQ) and the Taliban have used it as a PR exercise to gain political legitimacy. Far-right groups in the West have spun it to promote native nationalism, border restoration and anti-immigration policies. Terrorist groups have increased their social media propaganda to radicalise and recruit vulnerable individuals. At the same time, these groups have urged their supporters to carry out lone-wolf attacks and use the coronavirus as a bioweapon. In the post-COVID-19 world, revisiting existing counter-terrorism frameworks to devise more adaptable and cost-effective strategies would be needed to continue the fight against terrorism. In the next article, V. Arianti and Muh Taufiqurrohman observe that the COVID-19 outbreak has had a varied impact on Indonesia’s security landscape. On the one hand, it has emboldened IS-affiliated Indonesian militant groups to step up calls for attacks, with the government seen as weakened amidst a worsening domestic health crisis. On the other, ongoing indoctrination and recruitment activities of militant groups have also faced disruptions. According to the authors, counter-terrorism strategies will need to be reoriented as circumstances evolve, particularly in dealing with the arrest of militants and the subsequent processes of their prosecution and incarceration. Finally, Kyler Ong and Nur Aziemah Azman examine the calls to action by far-right extremists and the Islamic State (IS), which reveals varying degrees of organisational coherence in the respective movements. According to the authors, such variations influence these two groups’ preferred techniques, tactics and procedures adopted in seeking to exploit the health crisis. For its part, IS has a more organised hierarchical structure, even if it has increasingly granted autonomy to its affiliates to plan and execute attacks. In comparison, the absence of a central authority, or command structure in the far-right, can lead to a fragmentation of interests. These factors invariably create uncertainties in how, when and where extremists of both ilk may seek to operationalise an attack.
Topic:
Security, Government, Health, Terrorism, Counter-terrorism, Al Qaeda, Islamic State, and COVID-19
Political Geography:
South Asia, Indonesia, Southeast Asia, and Global Focus

149. Developing Countries Can Help Restore the WTO's Dispute Settlement System

Author:
Ana González and Euijin Jung
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
By refusing to fill vacancies in the World Trade Organization’s (WTO) Appellate Body—the top body that hears appeals and rules on trade disputes—the Trump administration has paralyzed the key component of the dispute settlement system. No nation or group of nations has more at stake in salvaging this system than the world’s big emerging-market economies: Brazil, China, India, Indonesia, Korea, Mexico, and Thailand, among others. These countries have actively and successfully used the dispute settlement system to defend their commercial interests abroad and resolve inevitable trade conflicts. The authors suggest that even though the developing countries did not create the Appellate Body crisis, they may hold a key to unlock it. The Trump administration has also focused its ire on a longstanding WTO practice of giving these economies latitude to seek “special and differential treatment” in trade negotiations because of their developing-country status. The largest developing economies, which have a significant stake in preserving a two-step, rules-based mechanism for resolving trade disputes, could play a role in driving a potential bargain to save the appeals mechanism. They could unite to give up that special status in return for a US commitment to end its boycott of the nomination of Appellate Body members.
Topic:
Development, Government, World Trade Organization, Developing World, and Donald Trump
Political Geography:
China, Indonesia, India, South Korea, Brazil, North America, Mexico, Thailand, and United States of America

150. Indonesia: 5-year forecast summary

Publication Date:
05-2020
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, 5-year summary, Forecast, and Forecast summary
Political Geography:
Indonesia