Category Archives: Poverty

Agricultural transformation: Neglected development in Indonesia

Economic Growth Program
Dr. Ronnie S. Natawidjaja of Center for Agrifood Policy and Agribusiness Studies, University of Padjajaran presented his work on agricultural transformation in Indonesia at GoLive Indonesia-PPIA Indonesian Student Association academic workshop series on 29th October 2012 at School of Economics, the University of Adelaide during his visit to Adelaide. He opened his presentation by saying ” Indonesia is a great country. There is no reason for Indonesians to be poor …” He explained how Indonesia should transform its agricultural sectors which may contribute to poverty reduction programs in Indonesia.

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Filed under Agriculture, Economic development, Employment, Food and agriculture, Indonesia, Investment, Poverty, PPIA academic discussion, Reform, Trade

If it’s not the economy, then what to do?

water pollution

Budi Akmal Djafar’s opinion piece in The Jakarta Post (Sept. 20) entitled “It’s [not] the economy stupid!” intrigued me. I like and support his overall idea that we should not only focus on the size of the pie (or box using his illustration) but also how to share the pie.

But being a mother of a five-year-old boy (and a baby) who is expanding his vocabulary at a pace much faster than the Chinese economy’s growth rate, the word “stupid” is a big no-no in our household.

Sure, as an economist, I know where the term originated from but mentioning that term has a big implication on how we should perceive the existing problems that Indonesia is facing now, as suggested by Budi’s piece.

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Filed under Climate change and environment, Income inequality, Indonesia, Poverty, Review of article

World Islamic Economic Forum (WIEF): Building Bridges through Business

“The 21st Century will be driven by openness, technology, connectivity, dialogue, and integration. It will be the age of possibility and opportunity. That is why the WIEF is relevant because it helps the Ummah adapt to that wondrous world. The Ummah can shape and have full ownership of the 21st Century”
– HE Dr. Susilo Bambang Yudhoyono, President of Indonesia, Honourary Member,  WIEF Foundation

The inaugural World Islamic Economic Forum (WIEF) was held in Kuala Lumpur from 1st – 3rd October 2005 with the theme ‘Forging New Alliances for Development and Progress’.  An important early decision by WIEF was that the Annual Forum would include not only Organization of the Islamic Conference (OIC) member countries and Muslim communities outside of OIC but also non-Muslim business communities across the globe.

From its inception the aim of WIEF, often now referred to as the ‘Davos of the Islamic World’, has been to build bridges between businesses – and between business and government – both within the Ummah and, increasingly, with non Muslims. WIEF believes that these ‘bridges’ will encourage investment and skills transfer which will in turn increase economic opportunities and reduce income disparities among the World’s ~1.8Bn Muslims – who collectively earn 80% less than world average income.

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Filed under Conference, Culture, Education, Income inequality, Investment, Islam, Poverty, WEF

The Winding Road to Fuel Price Hikes

In the midst of a global financial crisis, Indonesia enjoyed an impressive 6.5 percent growth rate in 2011. Yet, there have been some concerns over the sustainability of this growth in the long term.

One factor is related to the government’s policy on resource management, particularly the fuel subsidy policy.

With global oil prices exceeding US$100 per barrel, the Indonesian government’s finances will be stretched. Between 1990 and 2010, world energy consumption increased by 45 percent.

The process of economic rebalancing from West to East will potentially create energy supply problems and there is a strong indication that energy prices will continue increasing for the foreseeable future.

Indonesia’s decision on fuel subsidies will have economy-wide implications on growth through inflation rates and budget allocations to other important sectors including education, infrastructure development and poverty reduction programs. Data suggests that in 2011 fuel subsidies topped Rp 165 trillion ($18 billion).

To date, the Indonesian government and House of Representatives are still mulling the best option to deal with the increased demand for fuel and increased fuel prices.

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Filed under Energy, Indonesia, Infrastructure, Poverty

Rethinking Poverty

Rural poverty in Indonesia

Back in 2006, an article at the Economist reported “The Indonesian economy is growing. But so, unfortunately, is poverty“.

How about our poverty reduction programs’ progress in 2011?

On 7 December 2011 at PPIA (Indonesian student association) academic workshop, Chandra Wibowo, a graduate of Master in Applied Economics (Public Policy) who was the former president of PPIA University of Adelaide in the 2010-2011 period, presented his work “A Rethinking of Indonesia’s Poverty Reduction Strategies”. The workshop was well-attended by Indonesian students and researchers currently residing in Adelaide, South Australia.

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Filed under Economic development, Income inequality, Indonesia, Poverty, PPIA academic discussion, Review of article

The ASEAN-BIS Day 3 (18 November 2011) – More on ASEAN-Japan Relationships

ASEAN-Japan economic relationships are not all about government-to-government partnerships. The two regions have witnessed continuing progress in industry-to-industry partnerships too. The panellists in the ASEAN-Japan business and investment relationship session include Setsuo Iuchi (President of JETRO Thailand and Southeast Asia), Suparno Djasmin (Deputy Director PT Astra International Tbk), Karen Agustiawan (President Director of Pertamina), and Arifin Panigoro (Founder of Medco Group).

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Filed under ASEAN, ASEAN-BIS, Climate change and environment, Conference, East Asia, Economic development, Economic Integration, Education, Energy, Indonesia, Investment, Poverty, Trade

The ASEAN-BIS Day 3 (18 November 2011) – Development Challenges from Secretary General UN

Day 3 of the ASEAN Business and Investment Summit was focused on ‘the outward looking approach’ of ASEAN from a business and investment perspective. No person who would have been a better person to give an opening keynote speech than Secretary General of the United Nations, Ban Ki-Moon. From about 50 metre distance to his excellency, the GoLive Indonesia Representative (GIR) can feel his humbleness and concerns. What surprising was instead of talking about business and investment related matters, he talked about poor women’s and children’s health from less fortunate families in some developing countries and challenged the business communities ‘What can you do to address these development challenges?’.

At the end of the Day 3, the GIR found a link that could have connected between UN Secretary General’s development challenges and business communities contribution but was not explicitly stated by the panellists.
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Filed under ASEAN, ASEAN-BIS, Conference, Economic development, Economic Integration, Education, Indonesia, Poverty