Bulletin of Indonesian Economic Studies

Bulletin of Indonesian Economic Studies The Bulletin of Indonesian Economic Studies (BIES) is the leading journal on Indonesia’s economy and society. BIES has been published continuously since 1965.

It aims to address not only economic analysis and policy but also the intersection between economics, development, and area studies. In doing so, it plays an important role in helping the world—including Indonesians themselves—to better understand Indonesia. The editors welcome original papers and notes in economics, political economy, and related fields such as law and public policy, political sc

ience, demography, geography, the environment, education, and health. Regardless of topic or methodology, the primary focus must be Indonesia. The editors also look to publish discursive book reviews and review essays that contribute to the literature. BIES authors benefit from rigorous double-blind peer review, robust editing, free-access initiatives, a supportive self-archiving policy, and assistance in promoting their article after publication. The journal’s longstanding reputation as a well-respected outlet for high-quality research means each issue is read widely by Indonesianists everywhere. The journal’s practice of publishing article abstracts in both English and Bahasa Indonesia has increased the number of potential readers. In addition to the usual articles reporting economic analysis and research, each issue leads with an instalment of the comprehensive Survey of Recent Developments series, which records and analyses current trends, policy changes, and important economic events in Indonesia. The series aims to be reasonably accessible to non-specialists, and helps to account for the journal’s diverse readership within academia, government, and business and among the broader public. The academic journal of the ANU Indonesia Project, BIES receives financial support from the Australian Government Department of Foreign Affairs and Trade (DFAT) and the Arndt–Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, The Australian National University (ANU), Canberra, Australia. Neither DFAT nor ANU takes responsibility for the views expressed by authors in the journal. The journal is published three times a year, in April, August, and December. These three issues constitute one volume. A volume index of articles and book reviews by author is published in the last issue of each volume. BIES is published in hard copy in Indonesia by the Centre for Strategic and International Studies, Jakarta: www.csis.or.id, email [email protected]

Profile photo of Toba Lake, North Sumatra, by Ruben Sukatendel/Unsplash

Indonesia should increase trade and further integrate into global value chains to boost economic growth, BIES editor Ari...
13/12/2023

Indonesia should increase trade and further integrate into global value chains to boost economic growth, BIES editor Arianto Patunru argues in the latest free-access Survey.

Protectionism in Indonesia has been returning since the mid-2000s following a brief period of deregulation and liberalisation after the Asian financial crisis (AFC). This Survey reviews recent deve...

Out now in the December edition: ‘Social and Economic Convergence across Districts in Indonesia: A Spatial Econometric A...
13/12/2023

Out now in the December edition: ‘Social and Economic Convergence across Districts in Indonesia: A Spatial Econometric Approach’, by Ragdad C. Miranti and Carlos Mendez.

This paper evaluates social and economic convergence across 514 districts in Indonesia during 2010–18. By applying spatial panel data methods, this paper reexamines the regional convergence hypothe...

‘A reduction in input tariffs may hurt women’s employment’, this paper in the December edition argues.
12/12/2023

‘A reduction in input tariffs may hurt women’s employment’, this paper in the December edition argues.

We investigate the impact of trade liberalisation on female workers in manufacturing using arguably exogenous variation in Indonesia’s tariff reductions in the 1990s and 2000s. This study utilises ...

‘Policymakers should focus on the export potential of industries when designing export development policy’, rather than ...
11/12/2023

‘Policymakers should focus on the export potential of industries when designing export development policy’, rather than on the share of domestic value added in exports, this paper in the December edition argues.

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. We hypothesise t...

The December edition is out now, including two open-access articles—a critique of Indonesia's wavering approach to trade...
07/12/2023

The December edition is out now, including two open-access articles—a critique of Indonesia's wavering approach to trade policy, and a political paper on Indonesia’s ‘reformasi reversal’ and the ‘structural drivers of democratic decline’.
The edition also includes a tribute to Peter McCawley, who was a passionate and influential economist and scholar, and one of the Bulletin’s oldest and most valued friends.

Volume 59, Issue 3 of Bulletin of Indonesian Economic Studies

The global trend of using non-tariff measures (NTMs) to protect domestic industries seems to have caught on in Indonesia...
30/10/2023

The global trend of using non-tariff measures (NTMs) to protect domestic industries seems to have caught on in Indonesia. This paper finds that NTMs, as well as tariffs, hurt firms’ total factor productivity (TFP) and reduce employment.

The Indonesian government has been working hard to engage with the world market as tariffs continue to decrease. However, the government seems to be following the global trend of relying on non-tar...

Better law enforcement would help the Indonesian tax authority improve tax compliance and raise revenue, this BIES study...
29/10/2023

Better law enforcement would help the Indonesian tax authority improve tax compliance and raise revenue, this BIES study finds. Written by researchers from the Ministry of Finance, the study also finds that criminal investigation helps determine the effectiveness of law enforcement.

There are various studies on the relationship between law enforcement and tax compliance; however, a study that empirically examines the relationship between law enforcement and tax compliance with...

A recent study on intergenerational economic mobility has found a ‘discernible trend’ towards welfare improvement, with ...
27/10/2023

A recent study on intergenerational economic mobility has found a ‘discernible trend’ towards welfare improvement, with years of schooling being a key determinant. However, it also finds an intergenerational poverty trap, in which almost 34% of children whose parents were in the lowest economic quintile remained in the same position.

Using the Indonesian Family Life Survey we measure intergenerational expenditure mobility by applying logistic and unconditional quintile regressions (UQR) to explore how intergenerational persiste...

The Covid-19 pandemic presented specific challenges for women in Indonesia. Compared with men, women took on more low-qu...
03/10/2023

The Covid-19 pandemic presented specific challenges for women in Indonesia. Compared with men, women took on more low-quality work while their domestic duties increased. In this BIES article, University of Melbourne professor Lisa Cameron argues that a concerted effort by the government and business community is needed to ensure that Indonesian women can access their share of economic opportunities. Increasing women’s economic empowerment, labour force participation and gender equality can help the country’s long-term economic recovery while improving household outcomes, Cameron argues.

Gender equality in Indonesia is approximately at the level you would expect given the country’s level of development. Indonesia has more gender inequality than some neighbouring countries and less ...

Can Indonesia meet its energy transition goals? Yes, but it will be challenging, a new BIES paper suggests. Published in...
01/10/2023

Can Indonesia meet its energy transition goals? Yes, but it will be challenging, a new BIES paper suggests. Published in the August edition, the article looks at the viability of Indonesia’s plans for achieving its nationally determined contributions (NDCs) and net-zero emissions (NZEs) by 2060. It does this in the context of the country’s economic strength, past experiences in energy transition and the current status of ongoing initiatives, as well as the country's challenges due to its lower-middle-income status, limited budgets and constraints in attracting international finance.

The Indonesian government has submitted its plan for nationally determined contributions (NDCs) to the United Nations and has committed to achieving net-zero emissions (NZEs) by 2060. While looking...

13/09/2023

Final preparations!

Register: bit.ly/update40

13/09/2023
11/08/2023

Shifting social norms might be the key to unlocking increased women’s labour participation in Indonesia.

Accepted for publication: ‘Reliable Electricity Access, Micro–Small Enterprises and Poverty Reduction in Indonesia’, by ...
10/08/2023

Accepted for publication: ‘Reliable Electricity Access, Micro–Small Enterprises and Poverty Reduction in Indonesia’, by Putri W. Handayani, Rus’an Nasrudin and Jahen F. Rezki.

Abstract:
The government of Indonesia has launched subsidized electricity tariffs and a massive electrification campaign to improve the quality of life. However, whether these programs have increased access to energy for all and whether it reduces poverty is unclear. We empirically test the causal effects of electricity access on poverty reduction. We also investigate the potential role of micro-small enterprises (MSEs) as the transmission channel for poverty reduction. To isolate the endogeneity concerns, we use the instrumental variable (IV) approach. We exploit the village’s proximity to the nearest power plant in 1985 as the exogenous variation of the historical least-cost distance by the state-owned company (PLN) to instrument the endogenous nature of current time electricity access. Our results show that expanding reliable electricity services contribute significantly to poverty reduction.

The government of Indonesia has launched subsidized electricity tariffs and a massive electrification campaign to improve the quality of life. However, whether these programs have increased access ...

Accepted for publication: ‘The Impact of Covid-19 Lockdowns on Household Income, Consumption, and Expectations: Evidence...
04/08/2023

Accepted for publication: ‘The Impact of Covid-19 Lockdowns on Household Income, Consumption, and Expectations: Evidence from High-Frequency Data in Indonesia’, by Masagus M. Ridhwan, Jahen F. Rezki, Asep Suryahadi, Arief Ramayandi and Affandi Ismail.

Abstract:
We investigate the causal impact of Covid-19, through lockdowns, on household income, income expectations, consumption of durable goods, and budget allocation in Indonesia using high-frequency data from the monthly Bank Indonesia consumer survey with more than 176,000 respondents. We find that Covid-19 lockdowns have a large and significant adverse impact on households’ income, expectations, and consumption. We also find that households try to smooth consumption in the face of declining income, resulting in a significant increase in the budget allocation for consumption while reducing the shares of debt installments and savings. The impact of lockdown on households is also heterogeneous by expenditure levels, regions, and levels of education. These findings have important policy implications to cushion the pandemic’s impact on households and ensure a more inclusive recovery.

We investigate the causal impact of COVID-19, through lockdowns, on household income, income expectations, consumption of durable goods, and budget allocation in Indonesia using high-frequency data...

Accepted for publication: ‘Some Like It Hot: Household Disagreement and Productivity in Smallholder Chilli Production in...
02/08/2023

Accepted for publication: ‘Some Like It Hot: Household Disagreement and Productivity in Smallholder Chilli Production in Indonesia’, by April Sayekti, Daniel Gregg and Randy Stringer.

Abstract:
Women’s leadership of smallholder households is a major component of women’s empowerment. Approaches to understanding women’s empowerment in South East Asian countries require a nuanced approach due to the lack of independently managed plots by male and female spouses. We present an approach which allows detailed insights into women’s leadership of activities and the extent to which male and female spouses disagree about leadership. Using a combination of confirmatory factor analysis and a revenue function regression we show that female leadership and disagreement are both significant factors affecting household revenues from chili farming in rural Indonesia. In particular, disagreements can diminish chilli revenues and act to reverse gains from female leadership. Our results indicate women’s empowerment in these regions is strongly affected by the extent to which households can agree on the importance of women’s leadership. Results indicate a need to consider interventions that support building communication between the spouses and that reinforces the importance of acknowledging womens’ roles as leaders in decision making in the household.

Women’s leadership of smallholder households is a major component of women’s empowerment. Approaches to understanding women’s empowerment in South East Asian countries require a nuanced approach du...

06/07/2023

The Indonesian president’s visit to Australia could lead to closer co-operation on the energy transition, with Australia supplying lithium for Indonesia’s electric vehicle and battery production.

Terima kasih kpd para penulis yang telah membantu BIES mendapatkan Faktor Dampak Jurnal sebesar 4,1 di tahun 2022, nilai...
05/07/2023

Terima kasih kpd para penulis yang telah membantu BIES mendapatkan Faktor Dampak Jurnal sebesar 4,1 di tahun 2022, nilai tertinggi yg pernah BIES dapatkan. BIES skg berada di persentil ke-97 (Q1) dlm kategori area studi, dan persentil ke-78 (Q1) di bidang ekonomi.

30/06/2023

Registrations open!

In-person: bit.ly/update40_inperson
Online: bit.ly/update40_online
Full program: bit.ly/update40

Convenors: Prof. Edward Aspinall & Dr Amalinda Savirani

Crawford School of Public Policy Murdoch University The Asia Foundation LPEM FEB UI Badan Riset dan Inovasi Nasional (BRIN) Departemen Politik dan Pemerintahan, Universitas Gadjah Mada

30/06/2023

Exploring blurred lines between public and private security, public space and civil society and the flight of middle classes into private housing developments.

See Corry Elyda, Ian Wilson and Rita Padawangi at the bit.ly/update40

Singapore University of Social Sciences Murdoch University

Registrations opening soon!

30/06/2023

How do political and physical processes interact in urban flooding? How can we learn from past mistakes in traffic management? And how has Surabaya revolutionised its waste management?

See Yogi Setya Permana, Dr Muhammad Halley Yudhistira and Nur Azizah at bit.ly/update40

Universiteit Leiden / Leiden University Badan Riset dan Inovasi Nasional (BRIN) LPEM FEB UI ANU Coral Bell School of Asia Pacific Affairs

30/06/2023

Registrations opening soon!

Fighting for space in the city - Kampung residents and evictions

See Elisa Sutanudjaja & Clara Siagian at the 40th Indonesia Update: bit.ly/update40

Ruang Jakarta Crawford School of Public Policy

30/06/2023

Registrations opening soon!

Which cities have effectively challenged predatory elites to deliver reform?

See Dr Mochamad Mustafa (The University of Adelaide & The Asia Foundation) and Erman Rahman (The Asia Foundation and USAID Indonesia) at: bit.ly/update40.

30/06/2023

Indonesia is now an urban nation. What does this mean for city dwellers, and how are they shaping their futures?

See Assoc. Prof. Sonia Roitman (UQ Science) and Ayumi Malamassam (Badan Riset dan Inovasi Nasional (BRIN) & ANU Demography) at bit.ly/update40

Registrations opening soon!

30/06/2023

Prof. Abidin Kusno (York University) will give a broad outline of the evolution of Indonesian cities and their governance, from colonial times to Reformasi

Registrations opening soon, full program @ bit.ly/update40

30/06/2023

2023 Indonesia Update program released!

bit.ly/update40

Political Update from Jacqui Baker (Murdoch University), Economic Update from Arianto Patunru (Indonesia Project), and Keynote Address from Abidin Kusno (York Centre for Asian Research (YCAR))

+ sessions on:
- comparative and demographic perspectives
- governing urban Indonesia
- politics of urban land and relocation
- governing the urban environment
- the new urban landscape

30/06/2023

Registrations opening soon!

Dr Jacqui Baker from Murdoch University's Asia Research Centre will kick off this year's Update program with the Political Update.

Check out the full program at bit.ly/update40

30/06/2023

Trade policy in Indonesia: Between pragmatism, ambivalence and nationalism

The Indonesia Project's Dr Arianto Patunru will be delivering the Economic Update at this year's Indonesia Update conference

Program: bit.ly/update40

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