International negotiations on climate
change have been dogged by mutual recriminations between
rich and poor countries, constricted by the zero-sum
arithmetic of a shrinking... Show More +
global carbon budget, and
overtaken by shifts in economic power between industrialized
and developing countries. To overcome these
"narrative," "adding-up," and "new
world" problems, respectively, this paper proposes a
new Greenprint for cooperation. First, the large dynamic
emerging economies -- China, India, Brazil, and Indonesia --
must assume the mantle of leadership, offering contributions
of their own and prodding the reluctant industrial countries
into action. This role reversal would be consistent with the
greater stakes for the dynamic emerging economies. Second,
the emphasis must be on technology generation. This would
allow greater consumption and production possibilities for
all countries while respecting the global emissions budget
that is dictated by the climate change goal of keeping
average temperature rise below 2 degrees centigrade. Third,
instead of the old cash-for-cuts approach -- which relies on
the industrial countries offering cash (which they do not
have) to the dynamic emerging economies for cuts (that they
are unwilling to make) -- all major emitters must make
contributions. With a view to galvanizing a technology
revolution, industrial countries would take early action to
raise carbon prices. The dynamic emerging economies would in
turn eliminate fossil fuel subsidies, commit to matching
carbon price increases in the future, allow limited border
taxes against their own exports, and strengthen protection
of intellectual property for green technologies. This would
directly and indirectly facilitate such a technological revolution. Show Less -
Type: Policy Research Working Paper
Report#: WPS6440
Date: May 1, 2013
Author:
Mattoo, Aaditya ;
Subramanian, Arvind
This policy brief highlights the
significant progress made on the millennium development
goals (MDG) for gender equality and education. Focus is now
on systematic measures... Show More +
to increase access to improved
outcomes from a more gender responsive education. The MDG
targets to achieve gender parity in net enrollment at all
levels of education are on track to be met by 2015,
especially if disparities at the provincial level are
addressed. The challenge remains to mainstream a gender
perspective in education which involves assessing the
implication for females and males of any planned action,
including legislation, policies or programs in education, in
all areas and at all levels. Gender-responsive education
programs consider females and males concerns as an integral
dimension of the design, implementation, monitoring and
evaluation of education policies and programs. Show Less -
Type: Brief
Report#: 73031
Date: March 7, 2013
The report is divided into two parts.
The first three chapters show that the vast increase in
education resources has not been accompanied by a similar
increase in learning... Show More +
outcomes, and thus highlight the urgent
need to improve the quality of spending. Chapter one starts
by describing the complex financing and governance systems.
With this policy framework in mind, Chapter two focuses on
the 20 percent rule, analyzing its consequences for budget
planning and management and examining where resources went
after this vast increase in spending. The chapter also
provides some estimates of the cost of meeting future
government objectives, in the context of discussions on
expanding compulsory education, and broadening teacher
certification. Chapter three looks at education outcomes,
reviewing the significant improvements in access and equity,
as well as the worrisome trends in learning outcomes. It
points to improving the quality of education and expanding
access to secondary and above (especially for the poor) as
the main challenges in the sector. Given the cost of
achieving these goals, and the fact that current expenditure
patterns are unlikely to lead to improvements in learning
outcomes, the chapter concludes that improving the quality
of spending in education is now critical. The second part of
the report focuses on how to improve the quality of spending
in order to continue expansion and improve learning
outcomes. In chapter four, the quality of spending issue is
divided into two areas: i) reassigning or improving programs
at the central level, and ii) improving management at the
district and school levels. At the central level, this
chapter analyzes the Scholarships for the Poor program (BSM)
and recommends that it be expanded and improved. At the
sub-national level, the report explores how a combination of
more efficient teacher management and stronger support for
schools can improve efficiency and learning outcomes, and
what the central governments role should be in ensuring
that these changes occur. Finally, chapter five summarizes
these recommendations, providing a framework for improving
the quality of spending and, ultimately, ensuring that this
spending leads to an improvement in the quality of the
Indonesian education system. Show Less -
Type: Public Expenditure Review
Report#: 73050
Date: March 1, 2013
This policy note summarizes the findings
and recommendations from the recent Indonesia education
Public Expenditure Review (PER), which examines in detail
how additional... Show More +
resources were spent and the extent to which
they have translated into outcomes, with the ultimate
objective of providing recommendations to improve outcomes
by improving the quality of spending. Show Less -
Type: Brief
Report#: 76404
Date: March 1, 2013
Author:
Cerdan-Infantes, Pedro; Makarova, Yulia;
Al-Samarrai, Samer; Chen, Dandan
Indonesia is the world's fourth
most populous country, with more than 238 million people
living in an archipelago comprising over 17,000 islands.
Over the past decade... Show More +
the Indonesian economy has experienced
positive economic growth, reduced poverty, and made
continued progress towards many of the Millennium
Development Goals (MDGs). For example, Indonesia has already
met and surpassed projected reductions in the number of
underweight children under five years old to below 18
percent and is on track to meeting its targets for reducing
overall child mortality and the targets for achieving
universal basic education. While clear progress has been
made on reducing poverty rates, inequality has persisted,
with the result that many children and families have not
shared in these gains. Over 30 million Indonesians live
below the poverty line (US $2 per day) and half of all
households are clustered around the poverty line. Of the
poor, 65 percent currently live in rural areas. For these
families, national economic improvements have brought only
modest gains in health and education, putting
children's development at risk and threatening national
progress. A notable achievement for Indonesia is that
primary school enrollment is now near 100 percent for boys
and girls of all income levels. However, as children move
through the primary years, the enrollment disparities seen
in Early Childhood Education and Development, or ECED
services re-emerge. Educational attainment profiles reveal
that while almost all children from all segments of society
start primary school, children from poorer households and
children from rural areas have more difficulties progressing
from lower levels of education to higher levels. Only 55
percent of rural children make it to junior secondary
school, and less than a quarter enroll in senior secondary.
In contrast, 80 percent of urban children make it to junior
secondary school and almost two-thirds enroll in senior secondary. Show Less -
Type: Other Education Study
Report#: 73358
Date: March 1, 2013
Indonesia's economy continued to
grow at a steady pace in the final quarter of 2012, taking
full-year GDP growth to 6.2 percent. This was only a modest
reduction from... Show More +
the 6.5 percent growth recorded in 2011, a
resilient performance considering the weak global
environment and unsettled financial market conditions which
prevailed for much of the year. Looking ahead, Indonesia
should be able to maintain a solid pace of growth, but there
is no room for complacency, as a number of pressures are
mounting which could move the economy off this trajectory.
Global economic uncertainties remain elevated, Indonesias
investment growth has moderated and, as highlighted in the
December 2012 IEQ, the quality of domestic policies is
increasingly in focus, particularly in the run-up to the
2014 elections. Even if growth of 6.0 to 6.5 percent is
maintained, there is a risk that, without more progress on
policy reform and implementation, the opportunity could be
missed to boost growth at a time when the economy is
benefiting from a growing labor force and the agglomeration
effects of urbanization. Future appointments to key economic
policy roles, following the nomination of the Minister of
Finance as the next Governor of Bank Indonesia (BI), will
also frame the macroeconomic policy environment going
forward. The final quarter of 2012 remained challenging for
many of Indonesias major trading partners; growth in the US
and Japan was flat and the Euro Area recession deepened,
though growth in China firmed. Moving into 2013, global
growth remains subdued but international economic conditions
have turned somewhat more supportive for growth in
Indonesia. Global industrial production is increasing at a
modest pace, and global trade is expanding again, with
broad-based increases for developing countries exports.
Commodity prices have also generally posted modest gains
since December, including those of some of Indonesias key
export products like copper, rubber and palm oil. The
improved global economic data, and diminishing fears over
the risks of extreme adverse scenarios in the Euro area, US
and China, coupled with accommodative monetary policy in
most high income economies, have been broadly supportive of
financial markets. Global equity markets rallied in the
final two months of 2012 and have generally held these
gains, with some developed country equity indices at or near
record highs in nominal terms. Emerging market sovereign
credit spreads have widened so far in 2013 but still remain
close to their tightest levels since the global financial crisis. Show Less -
Type: Working Paper
Report#: 76086
Date: March 1, 2013
Indonesia, like many middle income
countries, has difficulty providing universal access to
education and adequate access to healthcare, particularly in
poor and rural... Show More +
areas. To tackle these problems, the
Government of Indonesia launched two large-scale programs in
2007. The programs both relied on cash transfers, but one
targeted households and one targeted communities. In both
cases, the transfers were designed to encourage families to
meet basic health and education indicators, including
prenatal visits for pregnant women, childhood immunization,
regular weight monitoring, and school attendance. To push
communities to focus on the most effective policies, a
portion of subsequent year grants is based on how well
communities do in meeting the previous year's health
and education targets. In this way, the program takes
aspects of conditional cash transfer and pay-for-performance
programs and reformulates them to encourage community-wide
performance and accountability. In order to test the
effectiveness of linking grants to the previous year's
performance, a second version of the program was carried out
in which communities received the money irrespective of the
previous year's performance. The grants have ranged
from an average of $8,500 in 2007 to $18,200 in 2009. This
World Bank supported program now reaches about 5.4 million people. Show Less -
Type: Brief
Report#: 75655
Date: February 1, 2013
Drawing on the findings of recent
research, this note examines the extent to which changes to
policy restrictions on foreign direct investment (FDI) in
the Indonesian... Show More +
service sector affected the performance of
downstream manufacturers during 1997-2009. The analysis
uncovers two important findings: first, that relaxing
restrictions toward FDI in service sectors was associated
with improvements in the perceived performance of those
sectors, and second, more importantly, that this relaxation
accounted for 8 percent of the total observed increase in
manufacturers' total factor productivity (TFP) during
this period. The results show that these TFP gains accrue
disproportionately to those firms that are relatively more
productive and that gains are related to the relaxation of
restrictions in the transport as well as the electricity,
gas, and water sectors. TFP gains are associated, in
particular, with the relaxation of foreign equity limits,
screening and prior approval requirements, but less so with
discriminatory regulations that prevent multinationals from
hiring key personnel from abroad. Show Less -
Type: Brief
Report#: 75321
Date: February 1, 2013
Author:
Varela, Gonzalo ;
Duggan, Victor ;
Rahardja, Sjamsu
Lack of sanitation and poor hygiene
behavior cause a tremendous disease burden among the poor.
This paper evaluates the impact of the Total Sanitation and
Sanitation... Show More +
Marketing project in Indonesia, where about 11
percent of children have diarrhea in any two-week period and
more than 33,000 children die each year from diarrhea. The
evaluation utilizes a randomized controlled trial but is
unusual in that the program was evaluated when implemented
at scale across the province of rural East Java in a way
that was designed to strengthen the enabling environment and
so be sustainable. One hundred and sixty communities across
eight rural districts participated, and approximately 2,100
households were interviewed before and after the
intervention. The authors found that the project increased
toilet construction by approximately 3 percentage points (a
31 percent increase in the rate of toilet construction). The
changes were primarily among non-poor households that did
not have access to sanitation at baseline. Open defecation
among these households decreased by 6 percentage points (or
17 percent). Diarrhea prevalence was 30 percent lower in
treatment communities than in control communities at endline
(3.3 versus 4.6 percent). The analysis cannot rule out that
the differences in drinking water and handwashing behavior
drove the decline in diarrhea. Reductions in parasitic
infestations and improvements in height and weight were
found for the non-poor sample with no sanitation at baseline. Show Less -
Type: Policy Research Working Paper
Report#: WPS6360
Date: February 1, 2013
Author:
Cameron, Lisa ;
Shah, Manisha ;
Olivia, Susan
This policy brief describes achievements
and remaining gender gaps in the labor market and suggests
ways to address shortcomings that are negatively affecting
Indonesia's... Show More +
economic development. Over the past seven
years, average annual growth of women entering labor market
has been substantially higher than men, in part due to
expansion of service sector employment and progress in
women's education. Yet women continue to face lower
participation and higher unemployment rates, poorer quality
work and lower wages, limited access to resources,
discrimination in hiring and promotion practices in the
formal sector, and informality of economic activity. They
constitute most self-employed, unpaid family workers, and
migrant workers, making them susceptible to personal and
financial insecurity, trafficking and other human rights
violations. These requires more attention to equal
employment opportunities, particularly in the formal sector,
strengthening the fit between women's training and
skills and current labor market requirements, addressing the
causes of labor market segmentation. Show Less -
Type: Brief
Report#: 73032
Date: January 1, 2013
Poverty, vulnerability, and social
protection illustrate key gender equity issues in addressing
vulnerability and social protection of the poor. Poverty
reduction has... Show More +
been the highest development priority of the
current government. The national poverty rate fell from 16.7
percent in 2004 to 13.3 percent in 2010. Poverty rates of
Female-Headed Households (FHH) remain lower than Male-Headed
Households (MHH). Over 2004-09, while there is a slightly
higher percentage of poor MHH than FHH, the overall rate of
poverty reduction is slower for FHH than for MHH and the
poverty rate for urban FHH is increasing. This is despite
the significantly higher percentage of FHH than MHH benefit
from all Social Protection (SP) programs. Improved targeting
techniques will reduce exclusion and inclusion errors and
ensure that more poor households receive social protection.
The challenge will be to ensure that the new targeting
mechanisms include the poverty indicators which reflect
characteristics of poor and vulnerable FHHs and that there
is an intra household equal access to program benefits. Show Less -
Type: Brief
Report#: 73063
Date: January 1, 2013
This policy brief provides an overview
of key achievements and outstanding issues in carrying out
Presidential Instructions on gender mainstreaming (INPRES
No. 9/2000),... Show More +
aimed at reducing the gap between Indonesian
women and men in accessing and obtaining development
benefits, as well as to increase participation in and
control over the development process. These Guidelines
created a momentum for the advancement of women and the
promotion of gender equality, which recently extended to
gender-inclusive planning and budgeting. There has been some
shift in socio-cultural norms and values to better protect
the rights of women and men as reflected in several laws
that have been revised. There are also signs, however, of an
emergence of religion-inspired discriminatory legislation at
the local level. The challenge now is to strengthen the
implementation of gender mainstreaming by improving
legislative and policy frameworks, to enforce coordination
of gender mainstreaming efforts among national ministries
and all levels of public institutions, and to replicate good
practices displayed throughout Indonesia. Show Less -
Type: Brief
Report#: 75844
Date: January 1, 2013
This case study describes and assesses
Jamkesmas, Indonesia's government-financed health
coverage program for the poor and near-poor. It provides a
detailed description... Show More +
of the scope, depth, and breadth of
coverage provided under Jamkesmas, and highlights ways in
which the program interacts with the rest of
Indonesia's health system. It also summarizes and
discusses evidence on whether Jamkesmas is attaining its
stated objectives of removing financial barriers and
improving access to health care by the poor and near-poor,
what could be improved, and what lessons can be learned from
the experience of Jamkesmas that could help inform
Indonesia's quest for universal coverage. The primary
theme underlying the study is that supply-side constraints
and supply-side subsidies have not been leveraged to
increase the effectiveness of the Jamkesmas program. There
are significant geographic deficiencies in the availability
and quality of the basic benefits package, especially for
those living in relatively remote and rural locations of the
country, and this limits the effective availability of
benefits for many Jamkesmas beneficiaries. The remainder of
the case study is organized as follows. Section two provides
general background and information on health system outcomes
in Indonesia. Section three is an overview of health care
financing and delivery. Section four describes the
institutional architecture of Jamkesmas. Section five
highlights the process of targeting, identification, and
enrolment of beneficiaries under the program. Section six
focuses on the role of public financing. Section seven
outlines the basic benefits package. Section eight provides
an overview of the information environment of Jamkesmas.
Section nine discusses the special theme of supply-side
constraints and supply-side subsidies that dilute the
effectiveness of the Jamkesmas program. Section ten
discusses the pending agenda around some of the
architectural and operational features of Jamkesmas in the
context of universal coverage. Show Less -
Type: Working Paper (Numbered Series)
Report#: 74996
Date: January 1, 2013
Author:
Tandon, Ajay ;
Harimurti, Pandu ;
Pambudi, Eko ;
Pigazzini, Anna
This paper examines the extent to which
policy restrictions on foreign direct investment in the
Indonesian service sector affected the performance of
manufacturers over... Show More +
the period 1997-2009. It uses firm-level
data on manufacturers' total factor productivity and
the OECD's foreign direct investment Regulatory
Restrictiveness Index, combined with data from Indonesias
input-output tables regarding the intensity with which
manufacturing sectors use services inputs. Controlling for
firm-level fixed effects and other relevant policy
indicators, it finds, first, that relaxing policies toward
foreign direct investment in the service sector was
associated with improvements in perceived performance of the
service sector. Second, it finds that this relaxation in
service sector foreign direct investment policies accounted
for 8 percent of the observed increase in
manufacturers' total factor productivity over the
period. The total factor productivity gains accrue
disproportionately to those firms that are relatively more
productive, and that gains are related to the relaxation of
restrictions in both the transport and electricity, gas, and
water sectors. Total factor productivity gains are
associated, in particular, with the relaxation of foreign
equity limits, screening, and prior approval requirements,
but less so with discriminatory regulations that prevent
multinationals from hiring key personnel abroad. Show Less -
Type: Policy Research Working Paper
Report#: WPS6349
Date: January 1, 2013
Author:
Varela, Gonzalo ;
Duggan, Victor ;
Rahardja, Sjamsu
Influenced by the condition of young
children within its own country and by the pattern of
international evidence about the value of early childhood
education and development... Show More +
(ECED), the government of
Indonesia has implemented policies and programs that
prioritize the early years of children's lives. The
first critical step was taken in 2001, when a new
directorate dedicated to early childhood was established
within the Ministry of Education and Culture. The second
critical step was taken when early childhood education was
included in a succession of key policy documents-the
National Education System Law No. 20 in 2003 and the
Ministry of Education and Culture's Strategic Plan
(Rencana Strategis or Renstra) in 2004. Despite such
progress, the major challenges that Indonesia faces today
are also akin to those faced by many other middle- and
low-income countries. The experiences and research results
discussed in this book are: researchers in early childhood
development and program evaluation, policy makers within and
outside of Indonesia, providers of early childhood services,
professional development providers, and advocates for
quality early childhood services. The evidence presented in
this book reinforces that multiple influences affect
children's development in the first years of life.
Family poverty is an important mediator of the influence of
community resources and children's innate abilities.
Increased access to early childhood services can have
positive effects on development outcomes, even in the short
run. These services can buffer the effects of home
environments that are not sufficiently stimulating and can
encourage parents to increase their use of practices that
will promote their children's development. Policy
makers and practitioners in Indonesia and countries around
the world have made important progress in understanding the
importance of these strong foundations for later success. As
the next generation of development goals are considered,
early childhood education and development is sure to be a
central focus. Continued emphasis is needed on sustainable
financing and ensuring quality as governments pursue agendas
focused on the expansion of ECED services. Show Less -
Type: Working Paper
Report#: 75437
Date: January 1, 2013
Author:
Hasan, Amer; Hyson, Marilou; Chang, Mae Chu
The evolving nature of education system
and the increasing complex challenges facing individual
teachers and the teaching profession as a whole are of
immense importance... Show More +
in Indonesia. The Indonesian teacher
reform was designed and is being implemented as a genuinely
comprehensive program. From its beginning, it has therefore
considered and responded to all of the necessary stages of
an effective teacher management and development process. The
importance of this reform is further underlined by the
efforts made by the Ministry of education and culture,
supported by the World Bank, to examine following points:
(1) the quality of existing (pre-reform) and new
(post-reform) teachers in the system; (2) the promotion of
higher standards and enhanced competencies for teachers
through more effective processes of recruitment, teacher
education, certification, remuneration and other incentives,
ongoing professional development and support, and career
promotion or progression; and (3) the impact of these
actions on teacher behavior and knowledge, student
achievement, and the financing and efficiency of the
education system. Thus, the World Bank team, with the
Indonesian Ministry of national education, designed and
managed a wide range of research projects and program
support activities that, taken together, tell the story of
the design, implementation, and impact of this reform. In
order to reduce the budgetary impact of the certification
program, the inefficiencies associated with teacher hiring
and deployment need to be addressed. Attention will also
need to be paid to staffing standards in small schools which
are a key driver of low student-teacher ratios. But the
incentive of both professional status and professional pay
is now attracting more candidates into teacher education at
the expense of other fields. The original intention of the
teacher law was to put in place a framework of effective
policies and procedures which would both assure the quality
of the process and its products and encourage continuing
professional development. Show Less -
Type: Working Paper
Report#: 75532
Date: January 1, 2013
The joint International Bank for
Reconstruction and Development (IBRD), International Finance
Corporation (IFC), and Multilateral Investment Guarantee
Agency (MIGA)... Show More +
Country Partnership Strategy (CPS) with
Indonesia for FY13-15 bridges the final two years of the
administration of President Susilo Bambang Yudhoyono (SBY).
Since 2004, Indonesia emerged as a vibrant and stable
democracy and as a self-assured middle-income economy with a
fast-growing private sector, and global and regional
influence. Building on six decades of partnership, the World
Bank Group's engagement with Indonesia continues to
move forward on the path developed by the previous CPS
FY09-12, supporting Indonesia's development agenda by
enabling local capacity to implement and deliver and by
strengthening economic competitiveness of the private
sector. The CPS is aligned with the country's master
plan for acceleration and expansion of Indonesia's
economic development 2011- 2025, which seeks to accelerate
development through a pro-growth, pro-jobs, pro-poor and
pro-green strategy. The government will take a strong
position not only as the regulator, but also as the
facilitator and function as a catalyst for growth for the
private sector. The CPS takes into account changing global
and domestic market conditions and the lessons learned from
the assessment of the CPS for FY09-12, in consultation with
the Government of Indonesia (GoI), private sector, civil
society, development partners and other major stakeholders. Show Less -
Type: Public Expenditure Review
Report#: 76501
Date: December 13, 2012
Type: Chairman's Summing Up
Report#: 74422
Date: December 11, 2012
This paper provides tabular results for
Sumatera and Kalimantan, including both Kabupaten
(districts) and Kota (cities). Tables one to three compare
the poverty variables... Show More +
of interest, including the poverty
rate, Gini, quintiles of real per capita expenditure and
population percentage below multiples of the poverty line.
Tables four to fourteen gives specific poverty measure (e.g.
poverty rate or Gini) and make comparisons across different
sizes (total, small holders, large holders) and across
specifications. Tables fifteen and sixteen examine the
effect of combined land use and combined production (small
holder and large holder) on per capita expenditure by
quintiles and population percentage below multiples of the
poverty lines to isolate which ownership is driving the results. Show Less -
Type: Working Paper
Report#: 77668
Date: December 3, 2012
With the globalized economy,
well-educated youth will be critical to Indonesias
competitiveness in the future. Demand for skilled workers
will increase with skill-oriented... Show More +
technological change. In
addition, a large pool of skills also facilitates knowledge
spillover and attracts technology imports. In the past
decades, significant changes of Indonesias labor market
have already taken place. Non-agricultural jobs increased
significantly, and skilled labor in non-agricultural sector
is on higher demand. In the meantime, higher level
professional and managerial jobs have also increased. In
contrast, unskilled, agricultural, and administrative
workers are on lower demand. Overall, the earnings
differentials between people with different education levels
are significant. The marginal returns to higher levels of
education - senior secondary or tertiary level - are
increasing. How to educate the youth and turn them into
productive labor force and future leaders is closely linked
to the countrys future. This sector report assesses
Indonesias senior secondary school system from three
angles: (1) how well does the senior secondary education
prepare the Indonesian youth for transition? What are the
outcomes? Is there equitable access? (2) How are the senior
secondary schools in Indonesia prepared for delivering their
promises? Do they have adequate resources and inputs? (3)
How is the system prepared? Are there effective quality
assurance mechanisms? Is the system financing arrangement
adequate? The report ends with policy recommendations. Show Less -
Type: Policy Note
Report#: 73763
Date: December 1, 2012
Author:
Chen, Dandan ;
Setiawan, Imam ;
Negara, Siwage