Journal of Indonesia Sustainable Development Planning (JISDeP)
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Infrastructure and Income Inequality in Indonesia: 2009-2017
Get PDFIn the economic development field, physical and social infrastructure have been argued to affect income inequality despite the mixed results. This study examines the impact of physical and social infrastructure (education and health) on income inequality in Indonesia using 34 provincial unbalanced panel data during 2009-2017. Infrastructure summary indices are constructed, and the impacts of infrastructure on income inequality are estimated by the Generalized Method of Moments (GMM). The findings conclude that physical and social (education) infrastructure contributes to income inequality increases in Indonesia though not robustly significant. Regarding health infrastructure, this study cannot definitely infer its nexus with income inequality since only the model of one-step different-GMM is significant. The result implies that the government needs to consider providing better distribution of infrastructure among income groups to improve income distribution
The Role of ICT and Human Capital Development in Pursuing a Demographic Dividend and Improving Economic Welfare in Indonesia
Get PDFThis article aims to provide evidence that Information and Communication Technology (ICT) and human development play an important role in pursuing a demographic dividend and accelerating economic welfare in Indonesia by exploiting provincial data from 2012 to 2017. The empirical evidence implemented in this research is Two-Stage Least Squares and dynamic system Generalized Method of Moments (GMM) techniques. The results show that a 1%-point rise in ICT development growth potentially leads to an approximately 0.24%-point increase in economic welfare growth, whereas an in life expectancy may decrease GDP per capita. The analysis also finds that a 1%-point increase in the ratio of the participation rate will promote a nearly 0.16%-point rise in per capita output. Meanwhile, a 1%-point increase in the share of the working-age population will generate roughly 0.19%-point rise in per capita income. A recent paper suggests that policymakers have to promote more supportive ICT and human development policies to pursue a demographic dividend since even though they have a positive impact on per capita income, the magnitude remains relatively low
Building the Integrity of Urban Development Planner Through Corruption Risk Management and Assessment: Literature Review
Get PDFPlanning in the broadest sense covers definition and selection of needs to evaluation and audit phase. Planning and planners have unique and strategic positions, roles, and functions, because they bring together two sides of interests: public sector interests and private sector interests. This uniqueness causes the field of planning and planners to have a political role and bargaining position in the development planning process. This political role can cause the presence of two sides, which are the bright side as the planner with integrity, who can design internal control systems and risk management for prevention and detection of corruption, and the dark side as the conspirator with public officials and the contractor or business corporation to bring corruption together. The dark side of planning becomes the entry point for corruption and/or fraud. The bright side of planning can be used to build the integrity of community and society, through the application of internal control systems and risk management that are based on specific corruption indicators such as Government Institution Risk Indicator (GIRI), Contractor Risk Indicator (CRI), and Political Connection Indicator (PCI)
A Review of Suramadu Regional Development Acceleration towards Sustainable Development Concept
Get PDFBased on the Surabaya Madura Regional Development Agency Master Plan 2010-2024, Madura Island has a strategic position as part of the Gerbangkertosusila Urban National Strategy. There is still, however, a development disparity between Madura Island and East Java. This can be seen from the economic performance of Madura Island which is quite low compared to other districts or cities in East Java Province. Madura Human Development Index (HDI) is below the East Java on average, and the percentage of poor people in Madura is the highest in East Java. Therefore, the development of Surabaya-Madura (Suramadu) must be integrated through regional development, such as development of connectivity systems. The research used descriptive analysis to assess the characteristics of a program and to adjust the characteristics with sustainable development theory that consists of three components, namely: environmental, economic, and social developments. These can ultimately be used to sharpen the development target to be achieved in the next 5 (five) years. Data were collected using secondary survey instruments through existing literature studies and policy reviews, such as National Medium-Term Development Plan 2020-2024 and Regional Medium-Term Development Plan of East Java Province
Post-Pandemic Development: Sluggish or Rapid Recovery?
Get PDFThe year 2020 will be recorded in world history as one of the most challenging periods. With the benefit of hindsight from previous crises, humanity will eventually (and this time hopefully) prevail. Covid-19 pandemic which has been around for a full calendar year sets a reminder and a call for us to adapt with a new mindset to embrace the new normal in our life. Not many countries can strike a delicate balance between saving lives and protecting livelihoods during this difficult time. Obviously, most developing countries have been struggling to control this seemingly intractable calamity from the first day of the outbreak.
Covid-19 pandemic has sent the world one strong message, it is that we are only as safe as the most vulnerable among us. This indicates the central place of solidarity in our life. While we are predicting the emergency-authorized vaccine as the “game-changer”, estimating the outcome in the following years leads us to numerous possibilities and scenarios. Questions surrounding vaccine distribution, efficacy rate, and unintended consequences will still linger. Narrowing down the probabilities will lead us to two contrasting scenarios either growth will be propelled immediately or growth will not be accelerated due to various factors.
Echoing previous editorial notes, the impact of the Covid-19 pandemic on SDGs targets (also to other global and national development plans) can be mixed. The quintessential question is on how we maintain positive outcomes when the pandemic is over and how to get back on the right track. Apparently, many development targets need to be revised and some if not most of them might not be easy to catch up with. This situation arguably sets a backdrop for “the great reset” where all development strategies need to be restarted, policies have to be scrutinized, and targets must be re-calibrated.
Undoubtedly, making predictions these days is not an easy job indeed. Too many variables and events need to be taken into account so as to reflect the complex world we live in. Sophisticated statistical methods and state-of-the-art computation technology do not really guarantee accuracy. It only needs a shock which makes our prediction becomes irrelevant. Many these days acknowledge VUCA (volatility, uncertainty, complexity, and ambiguity) as inherent characteristics of modern development. This poses serious challenges for those who work as planners in various contexts. Revising our projection might increase credibility but nobody knows for how long the revised targets will remain in a dynamic setting like nowadays.
The year 2020 gives a lesson that we seemingly learn the hard way. One important lesson is on finding the correct perspective in viewing government spending. For many years we have seen the dominant role of government spending in development and it becomes more prominent when the economy stagnates. However, we have also been constantly looking for a better way to increase the quality of spending and more importantly: the way we measure it. Apparently, it seems, current measurement is inextricably linked with rigid public accounting standard which does not allow much flexibility and largely fulfills an administrative purpose. Sadly, it tends to normalize the “gold standard” of government spending: “the more we spend, the better” which unfortunately reveals the downside of such a spending pattern. That explains the acceleration of absorption rate at the end of the fiscal year, anecdotes on a spending frenzy, and whimsical disbursement for the sake of spending.
Alternative measurement like efficiency score needs to be introduced immediately as a replacement of current performance indicators which is merely based on the monetary-based absorption rate of the annual budget. A simplistic method of budget absorption rate might still be relevant with tangible projects like infrastructure but it might be barely sensible within the context of intangible activities such as research, studies, advisory, and other knowledge sector-related projects.
In order to reduce the Covid-19 contagion, governments opt for mobility restriction which consequently causes almost entirely business activities into the hold. Travelling and MICE industries—which arguably predominates government spending on knowledge-sector as well as one of the most prioritized sectors in the economy—have been hit the hardest during the pandemic. The inefficiency problem has been rising to the surface and this time should attract more attention to policymakers and scholars. This sends an urgent call for those who are competent to develop a correct alternative to measure one’s performance.
Indeed, government spending is considered as the prime mover during difficult times and plays a pivotal role to accelerate economic recovery. However, the quality of spending will determine policy effectiveness. Mobility restriction brings a corollary that practices like working from home, digital economy, and assistive technology become a new normal. Numerous companies in developed countries pledged to resume this highly efficient and environment-friendly practice even after the pandemic. Yet, we have to ponder upon this shift into the context of developing countries where the informal economy is still rampant with the labor force population entering its peak. Probably unbeknownst to many, this “inefficiency” and negative externality (air pollution, road congestion, disposed waste) somehow correlates with employment creation and significantly acts as an economic multiplier. Finding the balance between “multiplier” and “efficiency” on government spending is therefore another issue that should be on the problem-solving bucket list. With quality spending, the policy effectiveness will lead to better outcomes which hopefully will bring rapid recovery.
Not only have the Covid-19 crisis taken a heavy toll on people’s lives, but it also made a dent in the global economy. Its adverse impact on jobs, livelihoods, poverty, and inequality has been reversing some of the gains that countries had made over the past few decades. To contain the damage, countries the world over have been adopting and adapting various policies to protect their populations and stabilize the economy. Problems and challenges that remain unsolved before the pandemic have been looking for solutions. Therefore, in this issue, we invite authors from diverse academic backgrounds to present their works not exclusively revolving around topics on Covid-19 pandemic but also to other important themes such as poverty (Nuryitmawan), urban planning (Sari et al), public finance (Putri), disaster mitigation (Erlinna), environment (Yazawa and Shimizu), well-being measurement (Suriadi and Kususanto), middle class (Pratomo et al), and tourism (Warganegara). We invite the readership to give us feedback on these articles and we surely welcome submissions on other topics from all fields of science in the upcoming issue
Ensuring Sustainable Urban Transformation in Indonesia: Toward Indonesia Emas 2045
Get PDFOf the many important events that occurred in the two decades of the 21st century, the process of accelerating urbanization—especially in third-world countries—became something quite phenomenal. It's never even happened before. In the early 2000s, only about 45 percent of the population in the third world lived in urban areas, by 2020 the number had reached about 55 percent. Between now and 2035 the percentage of the population living in urban areas will reach about 85 percent in developed countries. Meanwhile, in developing countries will reach about 65 percent. By 2035, it is also projected that about 80 percent of the world's urban population will live in developing countries' cities
The Influence of Government Subsidy and Pro-environmental Gaps on Electricity-saving Behaviors of Households in Indonesia
Get PDFThis research analyzes whether electricity subsidy as an external factor and pro-environmental intention and acts as internal factors have any relationship on households' electricity-saving behaviors in Indonesia. To this end, Indonesia's household data from the National Socioeconomic Survey of Indonesia (SUSENAS) in 2017 is empirically analyzed. Using logit regression with control factors such as dwellings and sociodemographic characteristics, the statistical analysis reveals that subsidized households areless likely to save electricity in their daily lives. Furthermore, families with higher pro-environmental intentions are not necessarily likely to save electricity, while households who are accustomed to pro-environmental routines are likely to do so. These demonstrate the existence ofinternal gaps between their pro-environmental intention and the acts, suggesting that electricity subsidies reform and program should be considered along with the way how intention-act gaps can be mitigated at household levels for energy saving
Disaster Management in the Implementation of the 2030 Sustainable Development Goals in Indonesia
Get PDFImpact of ICT Adoption on Inequality: Evidence from Indonesian Provinces
Get PDFThis study investigates the relationship between ICT adoption ratio and income inequality. While the majority studies explain the impact of ICT on income inequality via labor market, this study offers a different perspective on this relationship. The fast-growing ICT has influenced, not only the employment income, but also the household income, such as property income, consumer surplus, etc. Thus, this study seeks to show the impact of ICT on income inequality via household income channel. The large internet economy and the remarkable internet adoption increase in Indonesia demonstrate the considerable impact of ICT on the lives and income of people in Indonesia. By using panel data regression, this paper shows an inverted U-shape relationship between ICT adoption and income inequality. Low ICT adoption increased income inequality until a certain turning point, whereby higher ICT adoption reduced income inequality in society. The turning point relating to average adoption ratio of mobile phone, computer, and internet was 25%; while there was an average adoption ratio of 17% for computer and internet