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Indonesia

Despite expectations, cities in East Asia are becoming denser

Chandan Deuskar's picture
 
When we think of urban expansion in the 21st century, we often think of ‘sprawl’, a term that calls to mind low-density, car-oriented suburban growth, perhaps made up of single-family homes. Past studies have suggested that historically, cities around the world are becoming less dense as they grow, which has prompted worries about the environmental impacts of excess land consumption and automobile dependency. A widely cited rule of thumb is that as the population of a city doubles, its built area triples. But our new study on urban expansion in East Asia has yielded some surprising findings that are making us rethink this assumption of declining urban densities everywhere.

Indonesia’s GDP revision: a crisper snapshot

Alex Sienaert's picture



Indonesia’s national statistics agency (Badan Pusat Statistik, BPS) released quarterly national accounts statistics on February 5. Any quarterly data release creates a flurry of interest (well, at least amongst macroeconomists and economy-watchers hungry for the latest update on near-term growth trends). But this is a particularly important release because, as well as providing data for the final quarter of 2014, it also incorporates two significant revisions to Indonesia’s GDP statistics: (1) it  shifts the basis of the computation from the year 2000 to 2010, and (2) it adopts a significantly updated methodology and presentation of the statistics (updating Indonesia’s national accounts from the 1993 System of National Accounts [SNA] to SNA 2008).[1]

What do these revisions tell us about Indonesia’s economy that we didn’t know before? One change immediately stands out: total output in current prices is about 4.4 percent larger than previously estimated in 2014 (and 5.2 percent larger on average over 2010-2014). This is a significant change, adding IDR 448 trillion, or about USD 35.5 billion at the current market exchange rate, to the estimated size of the economy as of 2014. Roughly a third of the extra measured output is due to the incorporation of new kinds of economic activity under SNA 2008, and about two-thirds comes from more accurate measurements of previously-measured kinds of output, according to BPS.  

How Transformational Changes in Rural Sanitation Service Delivery in Indonesia Accelerated Access

Deviariandy Setiawan's picture
Open Defecation Free declaration billboard 
in Madiun city, East Java Province, Indonesia
Photo credit: Edy Basuki, East Java Health Office

Back in 2009, Ratih Purwindah, a 25-year-old newly appointed sanitation district facilitator, was not invited to sit in the car to travel with delegates from Indonesia’s Ngawi District to participate in the East Java province rural sanitation review meeting. Instead, Ratih was asked to take a bus the 180 km to Surabaya, even though there were vacant seats in the delegation’s car. She also did not get a desk at the district’s office. Five years onwards, this has changed and Ratih is now the provincial coordinator for the government’s sanitation program in Central Java. District sanitation facilitators working with her are recognized and empowered within District Health offices.  Ratih’s personal journey is a testament to the systemic changes that have taken place in Indonesia. With a focus on district-wide sanitation service delivery, Indonesia is accelerating access from below 1% to 2-3% a year and catching up to achieve the sanitation MDG. 

Aid for Peace? Let’s Dig Deeper

Robert Wrobel's picture

In their article “Aid for Peace,” Berman, Felter and Shapiro question some of the basic assumptions underpinning delivery of humanitarian development aid in zones of conflict and argue persuasively that small, targeted programs designed based on a deep contextual understanding of the drivers of a conflict produce better outcomes than programs aimed at spreading around as much cash as possible. As a development practitioner with experience in conflict-affected parts of Afghanistan, the Philippines, and Aceh, Indonesia, I ultimately agree with this conclusion and commend the authors’ innovative work through Empirical Studies of Conflict Project (ESOC). However, I would strongly caution against generalizing too broadly from the Philippines’ experience as to what constitutes “smart aid” in other conflict zones. It’s worth noting in particular that studies of community-driven development and conditional cash transfer programs implemented in other countries affect conflict outcomes in ways that are entirely at odds with the Philippines’ experience.
 

Tracking Urbanization: How big data can drive policies to make cities work for the poor

Axel van Trotsenburg's picture

Every minute, dozens of people in East Asia move from the countryside to the city.
The massive population shift is creating some of the world’s biggest mega-cities including Tokyo, Shanghai, Jakarta, Seoul and Manila, as well as hundreds of medium and smaller urban areas.

This transformation touches on every aspect of life and livelihoods, from access to clean water to high-speed trains that transport millions of people in and out of cities during rush hour each weekday.

Why Choosing the Preferred Sanitation Solution Should Be More Like Grocery Shopping

Guy Hutton's picture

When we go to the supermarket, our decision-making is considerably aided by having the price, ingredients and source of goods clearly labeled. This allows us to rapidly compare the characteristics, perceived benefits, and price of different products to make what is usually an informed and instantaneous purchase decision. 

When it comes to making investment choices for public programs, we do not traditionally have the same luxury of information. The full benefits and costs of those interventions, including the long-term costs to maintain and operate a service, are rarely understood or taken into account in the decision. As a result, public decisions are usually made based on the most visible costs (capital investment required from the public budget), historical choices and the political process. 

Mind, Society, and Behavior – and Financial Inclusion

Douglas Randall's picture

Like many World Bankers, I took some time recently to look through the newly released 2015 World Development Report “Mind, Society, and Behavior.” From my perspective, in the Finance and Markets Global Practice, one thing jumped out immediately: The report is packed with insights that are directly relevant to our work on financial inclusion.

In the Overview alone, the reader is met with an abundance of findings related to consumer protection, financial capability, savings and other key topics involving financial inclusion (grouped together under the theme of “household finance,” which is fully explored in Chapter 6). We’re told of how changes to the framing of payday-loan terms dramatically altered borrowing behavior in the Unitedc States; how embedding financial messages in an engaging television soap opera in South Africa improved the financial choices of viewers; and how SMS reminders increased saving rates in Bolivia, Peru and the Philippines.

Of course, this is not the first body of work to summarize key behavioral lessons learned from decades of careful research on financial inclusion: See, for example, Chapters 6-9 of Banerjee and Duflo’s Poor Economics or the Bank’s 2014 GFDR on Financial Inclusion.) But these examples do help drive home the key message of the report: Paying attention to how people think, and to how history and context shape their thinking, can improve the design and implementation of development policies and interventions that target human behavior.

The report highlights that psychological impulses such as present bias, loss aversion and cognitive overload can lead to poor financial decision-making. For those in or on the edge of poverty, the ramifications of these poor decisions – low savings, chronic over-indebtedness, investment shortsightedness – can be devastating. We are reminded that most adults in developing economies do not benefit from the sophisticated financial tools such as automatic salary deposits, mandatory retirement contributions, or default insurance programs that help mitigate the effects of automatic thinking.

Yet, as outlined in Chapter 6, there are a range of interventions that have been shown to help address behavioral constraints on financial decisions in a developing-country context. Many of those interventions take advantage of what we know about the natural processes of the mind, using techniques such as framing, default settings and emotion persuasion to nudge people toward better financial decisions.

#BestOf2014: Six Popular Environmental Stories You Shouldn’t Miss

Andy Shuai Liu's picture
As we get ready to kick off the new year, let’s recount the voices and stories about how we can enhance the way we interact with our planet. From Ethiopia to Indonesia, we’ve seen our efforts improve lives and help incomes grow as countries and communities strive for greener landscapes, healthier oceans and cleaner air.
 
Take a look back at some of the most popular stories you may have missed in 2014:
 
1. Raising More Fish to Meet Rising DemandPhoto by Nathan Jones via Flickr CC BY-NC 2.0

Aquaculture is on the rise to help feed a growing population. New #Fish2030 report: http://t.co/0fbH4fLDJO http://t.co/Lm5eHsGZaR

— World Bank (@WorldBank) February 6, 2014

10 Years After the Tsunami: What We Lost and What We Learned

Sri Mulyani Indrawati's picture

What I remember most of the first hours after learning about the tsunami was radio silence. Aceh, it seemed, had ceased to exist. The limited infrastructure in Indonesia’s northernmost province was decimated and none of the survivors was able to update the outside world.
 
To understand the scope of what had happened I flew to Aceh the following day. Since then I have carried with me indelible images of survivors who had nothing left but the clothes on their bodies. There were remnants of lives swept away, of loved ones who disappeared, and a desert of mud and debris beyond repair.
 
The death toll kept on rising for weeks. In the end, of the over 230,000 people who died in 14 countries, 220,000 were from Aceh. We estimated the disaster had caused damage worth $4.45 billion.
 
Ten years after the tsunami, I remember the loss of lives not only as the tragedy it was, but as a moment that changed the way the world manages disasters. I take some consolation from the fact that people survive disasters more often today because of the lessons we learned from the tsunami that affected so many of my fellow Indonesians. 
 
There are three conclusions that are critical to our experience.                  

Three key lessons from the 2004 Tsunami

Abhas Jha's picture



I began my professional career as a sub-district and district level administrator in India-a position that makes one responsible for pretty much everything- from making sure the water comes out of the taps and the garbage is collected in the morning to helping pull accident victims out from horrific accidents and facing down stone-pelting mobs. This early experience of being thrown into the deep end of the pool gives me a somewhat pragmatic sense of perspective and equanimity. But I still recall the horror and overwhelming grief that I felt when the full impact of the 2004 Tsunami started becoming clear. In Indonesia alone approximately 220,000 people lost their lives.


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