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Indonesia

ASEAN Cooperation is Crucial to Global Food Security

Bruce Tolentino's picture


There is clear and present danger that another global food price crisis will emerge sooner than later. 

A key signal is the lackluster result of the December 2013 Ministerial meeting of the World Trade Organization (WTO) in Bali, Indonesia - in the heart of the ASEAN community. 

The compromises arising from the WTO Bali meeting further demonstrates that many WTO member-nations have returned to a focus on internal domestic politics, sacrificing long-term gains shared across nations, in favor of short-term gains motivated largely by domestic political survival or sheer short-sightedness.

East Asia and Pacific countries can do better in labor regulation and social protection

Truman Packard's picture

Those unfamiliar with the fast growing emerging economies of East Asia are likely to think that governments in these countries let market forces and capitalism roam free, red in tooth and claw. That was certainly my impression before coming to work in the region, and generally that held at the outset of our work by the group of us that wrote a new World Bank report “East Asia Pacific At Work: Employment, Enterprise and Wellbeing” .

The report shows just how wrong we were. We could be forgiven this impression—many of us had come from assignments in Latin America and the Caribbean or in Europe and Central Asia, where the distortions and rigidities from labor regulation and poorly designed social protection are rife, and where policy makers cast envious looks at the stellar and sustained employment outcomes in East Asia.

Well, it turns out that although they came relatively late to labor regulation and social protection, many governments in the region have entered this arena with gusto. We were surprised to find that, going just by what is written in their labor codes, the average level of employment protection in East Asia is actually higher than the OECD average.

Tahun-tahun yang terbuang: Mengapa anak-anak Indonesia belajar lebih sedikit?

Samer Al-Samarrai's picture
Also available in: English

Sekarang, saat semua sudah tenang setelah hasil  hasil PISA keluar, mari kita coba pikirkan faktor-faktor penyebab di balik performa buruk Indonesia.  Bagi yang belum tahu, Indonesia berada di posisi lebih rendah dibanding semua negara yang berpartisipasi, kecuali Peru dalam hal matematika dan sains, serta negara kelima dari bawah dalam hal membaca. Hal yang lebih mengkhawatirkan mungkin adalah rendahnya tingkat pembelajaran yang dilaporkan untuk anak-anak Indonesia usia 15 tahun.  Dalam hal matematika, tiga perempat dari siswa berada dalam atau di bawah acuan terendah – tingkat yang diasosiasikan dengan keterbatasan kemampuan serta terbatasnya kecakapan berpikir lebih tinggi. 
 

Wasted years: Why do Indonesian children end up learning less?

Samer Al-Samarrai's picture
Also available in: Bahasa Indonesia

Now that the dust has settled around the PISA results we have been thinking about the reasons behind Indonesia's poor showing. For those of you who haven't seen them, Indonesia ranked lower than all participating countries except Peru in mathematics and science, and was fifth from last on reading. Perhaps more worrying were the low absolute levels of learning reported for 15-year-olds. In mathematics, three-quarters of students were rated at or below the lowest benchmark – a level associated with only rudimentary levels of proficiency and a lack of higher order thinking skills.

Indonesia’s investment in flux

Alex Sienaert's picture
Also available in: Bahasa Indonesia

Can Indonesia’s economy move from a situation of investment in flux to an investment influx? This is one of the questions posed by the World Bank’s March 2014 edition of the Indonesia Economic Quarterly.

Why is Indonesia’s investment growth in flux? First, there has been a slowdown in fixed investment, due to lower terms of trade and tighter external financing conditions. This has helped narrow Indonesia’s external imbalances.

Second, while foreign direct investment—an important source of investment financing—has remained solid so far, the rapid growth of FDI inflows seen in recent years shows signs of plateauing.

Third, Indonesia remains reliant on external financing from portfolio investment inflows. These have surged in recent months, but they can be volatile.

Finally, recent policy developments have increased regulatory uncertainties. Add to that the usual difficulty of predicting policy ahead of elections, which may impact on investment of all kinds.

Given uncertain prospects for global investment flows to major emerging market economies like Indonesia, the good news is that Indonesia’s external balances are adjusting. The current account deficit shrank significantly in the fourth quarter of 2013, to $4.0 billion, or 2% of GDP. This is a welcome reduction from the record high of $10.0 billion in the second quarter of 2013—that’s 4.4% of GDP. The stock market rallied, gaining 9% in local currency terms, bond yields fell, and the Rupiah climbed back by 7% against the USD, year-to-date, recouping some of last year’s significant losses. Banking and portfolio inflows also rose in the final quarter of 2013*.

But some caution is warranted. The adjustment has been narrowly based on tighter monetary policy and currency depreciation over the second half of 2013, and slower investment growth. Indonesia remains vulnerable to a renewed deterioration of global market conditions.

Investasi yang tak menentu di Indonesia

Alex Sienaert's picture
Also available in: English

Dapatkah ekonomi Indonesia keluar dari keadaan investasi yang tak menentu? Ini adalah salah satu pertanyaan yang diajukan dalam laporan Perkembangan Triwulanan Perekonomian Indonesia dari Bank Dunia edisi bulan Maret 2014.

Mengapa pertumbuhan investasi Indonesia tak menentu? Pertama, terdapat perlambatan dalam investasi tetap, karena turunnya kondisi perdagangan dan lebih ketatnya kondisi pembiayaan luar negeri.

Kedua, sementara investasi asing langsung (FDI)—sumber pembiayaan investasi yang penting—masih tetap kuat sejauh ini, laju pertumbuhan aliran masuk FDI yang tercatat pada beberapa tahun terakhir menunjukkan tanda-tanda mendatar.

Ketiga, Indonesia tetap bergantung kepada pembiayaan luar negeri dari aliran masuk modal investasi portofolio. Aliran itu telah meningkat pada beberapa bulan terakhir, namun dapat bersifat volatil.

Akhirnya, perkembangan kebijakan terakhir telah meningkatkan ketidakpastian peraturan. Hal itu menambah kepada sulitnya memperkirakan kebijakan menjelang pemilu, yang dapat berdampak kepada seluruh jenis investasi.

Dengan ketidakpastian prospek aliran investasi global ke ekonomi-ekonomi pasar berkembang seperti Indonesia, kabar baiknya adalah bahwa neraca eksternal Indonesia sedang melakukan penyesuaian. Defisit neraca berjalan menyusut secara signifikan pada kuartal terakhir tahun 2013 menjadi 4,0 miliar dolar AS, atau 2 persen dari PDB. Penurunan ini merupakan hal yang menggembirakan karena defisit pernah mencapai catatan tertinggi sebesar 10,0 miliar dolar AS pada kuartal kedua tahun 2013—yang merupakan 4,4 persen dari PDB. Pasar saham kembali naik, dengan mencatat peningkatan sebesar 9 persen dalam mata uang lokal, imbal hasil (yield) obligasi turun, dan Rupiah menguat sebesar 7 persen terhadap dolar AS, selama tahun berjalan, yang menutup sebagian penurunan yang signifikan pada tahun lalu. Aliran masuk modal portofolio dan perbankan juga meningkat pada kuartal penutup tahun 2013*.

Namun sejumlah hal perlu diwaspadai. Sejauh ini penyesuaian itu terutama berdasarkan pada kebijakan moneter yang lebih ketat dan depresiasi valuta selama paruh kedua tahun 2013, dan—seperti telah disinggung—melambatnya pertumbuhan investasi. Indonesia tetap rawan terhadap kemungkinan penurunan kembali kondisi pasar dunia.

Memperkaya racikan penelitian di tingkat sub-nasional melalui Open Data

Available in English

Merupakan kesalahan besar untuk membuat teori sebelum memiliki data. Karena kita akan mulai memutarbalikkan fakta agar sesuai dengan teori, dan bukannya teori agar sesuai dengan fakta – Sherlock Holmes.”
 

Bank Sampah di Indonesia: Menabung, Mengubah Perilaku

Randy Salim's picture
Also available in: English



Bicara soal sampah: kecenderungannya adalah kita tidak terlalu memikirkan apakah sampah yang kita hasilkan itu organik atau non-organik. Kita mungkin juga tidak terlalu peduli ke mana larinya sampah itu. Sementara kenyataannya: di Indonesia, sampah rumahtangga kita akan bercampur dengan sampah jutaan rumahtangga lainnya, hingga terbentuklah gunung-gunung sampah yang tak semestinya di tempat pembuangan akhir (TPA) berbagai kota.  
 
Bicara soal pengelolaan sampah yang ideal, para pakar akan mengatakan bahwa tanggungjawabnya bukanlah milik pemerintah kota semata, tetapi milik bersama.
Jumlah penduduk terus meningkat, begitu pula pola konsumsi. Volume sampah pun kian meluap di berbagai TPA.
 
Lantas apa yang bisa dilakukan? Saat ini di Indonesia, Bank Dunia tengah mengkaji berbagai cara untuk memperbaiki sistem pengelolaan sampah. Salah satu pilihannya adalah memperbanyak jumlah bank sampah.  Belum lama ini saya bersama tim proyek pengelolaan sampah Bank Dunia  mengunjungi bank sampah di beberapa kota untuk belajar lebih banyak tentang cara kerjanya.
 

Waste Not, Want Not : “Waste Banks” in Indonesia

Randy Salim's picture
Also available in: Bahasa Indonesia



When you’ve grown so used to tossing all manner of garbage into the trash bin, without giving a second thought to whether it is organic or non-organic waste, it’s easy to not care where your garbage ultimately ends up. But the reality is that, in Indonesia, your garbage gets mixed together with the garbage of millions of households, creating mountains of toxic waste too large to contain in municipal landfills.
 
As experts in the field would vehemently argue, solid waste management is not the sole responsibility of a municipal government, but a collective one. As populations grow and consumption patterns increase, more and more solid waste is created– and landfills can only take so much waste!
 
So what to do? The World Bank in Indonesia is currently exploring how to improve solid waste management, and scaling up ‘waste banks’ is one option.  Recently I went on mission with the Solid Waste team to see these waste banks at work.
 

Indonesia’s “continuing adjustment”

Alex Sienaert's picture


2013 has been a year of adjustment for Indonesia’s economy.  In the recent edition of the Indonesia Economic Quarterly report, the flagship publication of the World Bank Indonesia office, we asked the questions: what are the drivers of this adjustment and how should policy respond?

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