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Indonesia

The case for inclusive green growth

Sri Mulyani Indrawati's picture
Women fishers in Ghana. (Andrea Borgarello/World Bank - TerrAfrica)



Over the last 20 years, economic growth has helped to lift almost a billion people out of extreme poverty. But 1 billion people are still extremely poor. 1.1 billion live without electricity and 2.5 billion people without access to sanitation. For them, growth has not been inclusive enough.

In addition, growth has come at the expense of the environment. While environmental degradation affects everyone, the poor are more vulnerable to violent weather, floods, and a changing climate.

Development experts, policymakers, and institutions like the World Bank have learned a major lesson: If we want to succeed in ending poverty, growth needs to be inclusive and sustainable.

Can land registration institutions be reformed in deeply entrenched bureaucracies?

Wael Zakout's picture
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
I just returned from Turkey where I visited the Turkish Tabu Cadastre Agency (Land Registration Agency of Turkey). The agency had changed so much that I did not recognize it.
 
I remember my first visit to the agency in 2007. The agency is heavily staffed (15,000), has more than 100 branches and its main headquarters had once almost fallen apart. In my first visit, the head of the agency gave me a nice surprise: he showed me a land book that dated back to the 18th century, and included a record of my great-great-grandfather’s land title in Palestine.
 
The head of the agency had great plans to transform the agency by improving land records, introducing computerization and integrating the system into the overall e-government program, and setting a time limit of one day to register land transactions. Based on that an ambitious reform agenda, we worked together over a few months’ ‘time to prepare the cadastre modernization project. The Bank partly financed this reform through a $100 million loan, while the Turkish government funded the rest of the program. The project started in 2007, and I moved on to other positions later that year.
 
This time I had a second surprise. The institution is completely transformed. The main office has been completely and beautifully renovated. It now resembles any other government office in the US or Europe. The agency presented its achievements. It was amazing to see what had been accomplished in 8 years. The government is about to complete the renovation of the cadastre and the computerization of all land records, including historical records from Ottoman times. Service delivery has improved dramatically, with property transactions now being registered within 2 hours. They also integrated cadastre registration into the overall e-government program, which allows any Turkish citizen to access the record of their land/property online. Above all, customer satisfaction has reached 97% — something unheard of for land agencies, often known to be among the most corrupt agencies in many countries.

Bringing peace – and ending violence – for women and girls

Sri Mulyani Indrawati's picture
Sri Mulyani Indrawati talks with a patient’s grandmother at the HEAL Africa hospital. Cherry Stoltenberg/HEAL Africa


Deep inside the sprawling HEAL Africa Hospital complex in the Eastern Congolese city of Goma is a small ward where women recover from injuries they suffered during complicated births and violent sexual attacks. When I entered, I first saw Muwakeso, a fragile-looking elderly woman sitting on a chair next to a bed. It took me a moment to realize that she wasn’t the patient, but rather her 3-year-old granddaughter Sakina, who was curled up into a tiny mound under a hospital sheet on the bed.
 
Sakina was heavily sedated to numb the pain after the second of three major surgeries she underwent to reconstruct parts of her lower body following a horrific attack about a year ago. Muwakeso recalls five men in civilian clothes approaching her house and beating her. Before she lost consciousness she heard Sakina screaming. The young girl was raped, but Muwaseko doesn’t know by how many men, and Sakina is unable to say.

The role of ombudsman institution in improving public service delivery

Danang Girindrawardana's picture



In May 2015, I was a panel speaker at the 2nd World Bank – International Ombudsman Institute Roundtable on the role of ombudsman institutions (OIs) in promoting citizen-centric governance and inclusive institutions. This was a great opportunity to share the experience of my office, the Ombudsman Republic of Indonesia (ORI) in promoting greater government accountability and also learn from other countries’ experiences presented by the other panelists. 

The OIs come in various shapes and sizes, thus encompassing different roles depending upon their national mandates. While OIs are mostly known to deal with complaints regarding maladministration issues not addressed at the agency level, our panel discussed how OIs could contribute to service delivery improvements, while also promoting citizen engagement in demanding accountability.

As fellow Ombudsman Peter Tyndall from Ireland noted, OIs are capable of not only looking into individual complaints regarding poor service delivery often caused by one-off incidences, but also investigate and uncover roots of more systemic problems within public institutions. 

Providing schools with the money they need

Samer Al-Samarrai's picture



This year, Indonesia celebrates the first decade of its school grant scheme BOS (Bantuan Operasional Sekolah). The program aims to ensure that schools have sufficient funds to operate, reduce the education costs faced by households and improve school based management. The program is huge and covers approximately 43 million primary and secondary school students across Indonesia. Every year, schools receive $50 for each primary and $60 for each junior secondary school student[1]. This translates into an annual grant of about $20,000 for the average junior secondary school.  
 
Since I arrived in Indonesia we have visited schools regularly to check on the progress of BOS. I have talked with poor parents about how the program has helped to lower the education costs they face. School Principals have shared with me the many ways BOS has enabled them to provide the training opportunities their teachers need to improve classroom practice. School visits have also highlighted some of the challenges the program has faced in ensuring funds are used transparently. In one school, the necessary public noticeboard displaying information on the use of BOS funds was pulled out from behind a cupboard and contained information that was a year out of date.

Financial inclusion: Stepping-stone to prosperity

Sri Mulyani Indrawati's picture

In Pakistan, Salma Riaz, right, shows Saba Bibi how to use her new cell phone to receive payments. © Muzammil Pasha/World BankTwo and a half billion people in the world do not have access to formal financial services. This includes 80% of the poor — those who live on less than $2 a day. Small businesses are similarly disadvantaged: As many as 200 million say they lack the financing they need to thrive.

This is why we at the World Bank want men and women around the world to have access to a bank account or a device, such as a cell phone, that will let them store money and send and receive payments. This is a basic building block for people to manage their financial lives.

Why is this so important? Financial inclusion helps lift people out of poverty and can help speed economic development. It can draw more women into the mainstream of economic activity, harnessing their contributions to society. And it will help governments provide more efficient delivery of services to their people by streamlining transfers and cutting administrative costs.

A step out of poverty

Studies show that access to the financial system can reduce income inequality, boost job creation, and make people less vulnerable to unexpected losses of income. People who are "unbanked" find it harder to save, plan for the future, start a business, or recover from a crisis.

Being able to save, make non-cash payments, send or receive remittances, get credit, or get insurance can be instrumental in raising living standards and helping businesses prosper. It helps people to invest more in education or health care.

Now is the time to strengthen disaster risk reduction in East Asia and the Pacific

Axel van Trotsenburg's picture
In PDF: Korean | Khmer

Every time I learn of another natural disaster – the people killed and injured, homes destroyed, livelihoods lost – I know we must act to reduce the tragic impact instead of waiting for the next disaster strikes.

We have that chance with this year’s World Conference on Disaster Risk Reduction in Sendai, which seeks to finalize the successor to the Hyogo Framework for Action (HFA2) that guides policymakers and international stakeholders in managing disaster risk. The conference is an opportunity to set new milestones in disaster risk reduction and fighting poverty.

The cost of natural disasters already is high – 2.5 million people and $4 trillion lost over the past 30 years with a corresponding blow to development efforts.

In Asia, rapid urbanization combined with poor planning dramatically increases the exposure of cities, particularly those along densely populated coasts and river basins. Typhoon Haiyan, which killed more than 7,350 people in the Philippines in 2013, directly contributed to a 1.2 percent rise in poverty.
 

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. 


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