The Indonesian Economy in Transition: Policy Challenges in the Jokowi Era and Beyond

By any indicator, Indonesia, the fourth most populous nation on earth, is a development success story. Yet 20 years after a deep economic and political crisis, it is still in some respects an economy in transition. The country recovered from the 1997-98 crisis and navigated the path from authoritarian to democratic rule surprisingly quickly and smoothly. It survived the 2008-09 global financial crisis and the end of the China-driven commodity super boom in 2014 with little difficulty. It is now embarking on its fifth round of credible national elections in the democratic era. It is in the process of graduating to the upper middle-income ranks. But, as the 25 contributors to this comprehensive and compelling volume document, Indonesia also faces many daunting challenges -- how to achieve faster economic growth along with more attention to environment sustainability, how to achieve more equitable development outcomes, how to develop and nurture stronger institutional foundations, and much else.

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Contents

Frontmatter
pp i-iv
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Contents
pp v-vi
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Foreword: Lessons for Indonesia from East Asia
pp vii-xiii
- By Boediono, Former Vice-President of Indonesia
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Acknowledgements
pp xiv-xiv
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About the Contributors
pp xv-xvii
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1 - Setting the Scene: The Indonesian Economy in Transition — the Jokowi Era and Beyond
pp 1-33
- By Hal Hill, H.W. Arndt Professor Emeritus of Southeast Asian Economies, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra., Siwage Dharma Negara, Senior Fellow in the Regional Economic Studies Programme and Co-coordinator of the Indonesia Studies Programme at the ISEAS – Yusof Ishak Institute, Singapore.
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2 - A New Developmentalism in Indonesia?
pp 34-56
- By Eve Warburton, Visiting Fellow in the Indonesia Studies Programme at the ISEAS – Yusof Ishak Institute, Singapore.
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3 - Macroeconomic Management: Success and Challenges
pp 57-86
- By Arief Ramayandi, Lead Economist in the Economics Department, Asian Development Bank, Manila., Siwage Dharma Negara, Senior Fellow in the Regional Economic Studies Programme and Co-coordinator of the Indonesia Studies Programme at the ISEAS – Yusof Ishak Institute, Singapore.
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4 - Continuity or Change? Indonesia's Intergovernmental Fiscal Transfer System under Jokowi
pp 87-120
- By Gerrit J. Gonschorek, PhD candidate at the Institute of Economics, Department of International Economic Policy, University of Freiburg, Germany., Günther G. Schulze, Professor of Economics at the Institute of Economics, University of Freiburg, Germany; and Adjunct Professor at the Arndt- Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra.
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5 - How Well Is Indonesia's Financial System Working?
pp 121-148
- By Natasha Hamilton-Hart, Professor in the Department of Management and International Business at the University of Auckland, New Zealand.
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6 - Rising Economic Nationalism in Indonesia
pp 149-179
- By Arianto A. Patunru, Fellow in the Indonesia Project, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra.
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7 - Trends in the Manufacturing Sector under the Jokowi Presidency: Legacies of Past Administrations
pp 180-208
- By Ari Kuncoro, Professor of Economics and Dean, Faculty of Economics and Business, University of Indonesia, Jakarta.
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8 - Indonesia's Services Sector: Performance, Policies and Challenges
pp 209-238
- By Titik Anas, Founder of Presisi Indonesia; and Lecturer at Padjadjaran University, Bandung., Thaliya Wikapuspita, researcher at Presisi Indonesia.
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9 - Infrastructure Development under the Jokowi Administration: Progress, Challenges and Policies
pp 239-265
- By Wilmar Salim, Chair of Graduate Study Program at the Department of Regional and City Planning, School of Architecture, Planning and Policy Development, Bandung Institute of Technology, Bandung., Siwage Dharma Negara, Senior Fellow in the Regional Economic Studies Programme and Co-coordinator of the Indonesia Studies Programme at the ISEAS – Yusof Ishak Institute, Singapore.
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10 - Education in Indonesia: A White Elephant?
pp 266-288
- By Sandra Kurniawati, Research Specialist in the National Team for the Acceleration of Poverty Reduction, Office of the Vice President of Republic of Indonesia., Daniel Suryadarma, Deputy Team Leader at RISE Programme in Indonesia, Jakarta., Luhur Bima, Senior Researcher at SMERU Research Institute, Jakarta., Asri Yusrina, Researcher at SMERU Research Institute, Jakarta
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11 - Labour Market Developments in the Jokowi Years’
pp 289-317
- By Chris Manning, Honorary Associate Professor, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra., Devanto Pratomo, Senior Lecturer at the Faculty of Economics and Business, Brawijaya University, Malang.
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12 - Cards for the Poor and Funds for Villages: Jokowi's Initiatives to Reduce Poverty and Inequality
pp 318-361
- By Asep Suryahadi, Director of SMERU Research Institute, Jakarta., Ridho Al Izzati, Junior Researcher at SMERU Research Institute, Jakarta
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13 - Distributional Politics and Social Protection in Indonesia: Dilemma of Layering, Nesting and Social Fit in Jokowi's Poverty Policy
pp 362-384
- By John McCarthy, Associate Professor at the Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra., Mulyadi Sumarto, Assistant Professor in the Department of Social Development and Welfare and Center for Population and Policy Studies, Universitas Gadjah Mada, Yogyakarta.
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14 - Has Indonesian Food Policy Failed?
pp 385-413
- By Maria Monica Wihardja, an Indonesian economist.
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15 - Illegal Fishing War: An Environmental Policy during the Jokowi Era?
pp 414-440
- By Budy P. Resosudarmo, Professor at the Indonesia Project, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra., Ellisa Kosadi, Research Assistant at the Indonesia Project, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra.
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Index
pp 441-452
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The Indonesian Economy in Transition

Policy Challenges in the Jokowi Era and Beyond

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Contents

Frontmatter
pp i-iv

Contents
pp v-vi

Foreword: Lessons for Indonesia from East Asia
pp vii-xiii

Acknowledgements
pp xiv-xiv

About the Contributors
pp xv-xvii

1 - Setting the Scene: The Indonesian Economy in Transition — the Jokowi Era and Beyond
pp 1-33

2 - A New Developmentalism in Indonesia?
pp 34-56

3 - Macroeconomic Management: Success and Challenges
pp 57-86

4 - Continuity or Change? Indonesia's Intergovernmental Fiscal Transfer System under Jokowi
pp 87-120

5 - How Well Is Indonesia's Financial System Working?
pp 121-148

6 - Rising Economic Nationalism in Indonesia
pp 149-179

7 - Trends in the Manufacturing Sector under the Jokowi Presidency: Legacies of Past Administrations
pp 180-208

8 - Indonesia's Services Sector: Performance, Policies and Challenges
pp 209-238

9 - Infrastructure Development under the Jokowi Administration: Progress, Challenges and Policies
pp 239-265

10 - Education in Indonesia: A White Elephant?
pp 266-288

11 - Labour Market Developments in the Jokowi Years’
pp 289-317

12 - Cards for the Poor and Funds for Villages: Jokowi's Initiatives to Reduce Poverty and Inequality
pp 318-361

13 - Distributional Politics and Social Protection in Indonesia: Dilemma of Layering, Nesting and Social Fit in Jokowi's Poverty Policy
pp 362-384

14 - Has Indonesian Food Policy Failed?
pp 385-413

15 - Illegal Fishing War: An Environmental Policy during the Jokowi Era?
pp 414-440

Index
pp 441-452

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The Indonesian Economy in Transition

Policy Challenges in the Jokowi Era and Beyond

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