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11. Financial Inclusion and Savings in Indonesia

Author:
Rashesh Shrestha and Samuel Nursamsu
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper discusses the status of financial inclusion in Indonesia and examines the impact of financial inclusion – based on availability of bank branches on household outcomes – in Indonesia. Based on analysis of the World Bank’s Financial Inclusion Survey (FINDEX) data, Indonesia has made some progress on expanding financial inclusion. The share of individuals with bank accounts rose from less than 20% to just under 50% in 2017. Interestingly, while the gain between 2011 and 2014 was greater for individuals in the upper 60 percentile of income, the gains between 2014 and 2017 were more pro-poor. This progress was made possible due to concerted government efforts to expand financial inclusion. In our empirical analysis, we study how financial inclusion enables households with income gains into savings for assets and earnings. Using the Indonesian Family Life Survey data, we find that living in areas with high density of bank branches helps poor households accumulate savings. The marginal effect of financial inclusion on savings is highest amongst the households in the bottom quintile of per capita consumption distribution. Thus, access to formal financial institutions can lead to improvement in household welfare.
Topic:
Inequality, Finance, Banks, and Domestic Policy
Political Geography:
Indonesia, Asia-Pacific, and Indo-Pacific

12. Measuring the Pro-Poorness of Urban and Rural Economic Growth in Indonesia, 2004–2014

Author:
Takahiro Akita and Sachiko Miyata
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study measures the pro-poorness of urban and rural economic growth by region from 2004 to 2014 in Indonesia using pro-poor growth indexes, with data from the National Socio-Economic Survey (Susenas). It also conducts a probit analysis to explore the determinants of poverty. All regions (Sumatra, Java–Bali, Kalimantan, Sulawesi, and East Indonesia) experienced a substantial increase in expenditure inequality in both urban and rural areas; thus, the change in poverty incidence due to redistribution effects is positive. Apart from East Indonesia, they reduced the incidence of poverty in both areas, but their growth was not pro-poor in the strict sense. According to the pro-poor growth indexes, urban areas performed better than rural areas; in most regions, the growth of urban areas was moderately pro-poor, while that of rural areas was weakly pro-poor or anti-poor. The government needs to take urban–rural and regional differences into account when formulating poverty alleviation policies and programs since these differences would affect economic growth and changes in inequality.
Topic:
Poverty, Inequality, Economic growth, Urban, and Rural
Political Geography:
Indonesia, Asia-Pacific, and Indo-Pacific

13. Comparing the Perceptions of Indonesians and Malaysians toward the China’s Belt and Road Initiative: Facts and Trends

Author:
Yasmi Adriansyah and Yin Shi Wu
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
This article examines public perceptions in Indonesia and Malaysia regarding the China’s Belt and Road Initiative (BRI). In order to get a comprehensive picture of the subject matter, the article applies three perspectives, namely International Politics, Economy and Debt Trap, and Public Acceptance. The attachments of Indonesia (under Joko Widodo administration) and Malaysia (under Najib Razak administration) are analyzed, mainly by observing the perceptions of the political elites and opinion polls in these most populous Muslim countries. The findings show that both governments in the two countries had exhibited high inclination toward the BRI. Interestingly, their public show different attitudes and many people are against or at least critical of these policies. It therefore suggests that the pro-BRI policies of the governemnts must be managed with high care in order to balance the different interrests with the popular interests.
Topic:
Foreign Policy, Debt, and Belt and Road Initiative (BRI)
Political Geography:
China, Indonesia, and Malaysia

14. Modern Migration Pattern in Indonesia: Dilemmas of a Transit Country

Author:
Wahyuni Karikasari
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
The development of world politics has produced conflicts and war in several countries giving rise to a new form of migration, the migration from conflicts and war. This article analyzes the impact of the modern migration in Indonesia. It found that Indonesia is a transit country “invaded” by those migrants who pose serious dilemmas for humanitarian reasons. On the other hand, Indonesia has a limited obligations for dealing with migrants and refugees becasuse it is not part of the 1951 Convention relating to the Status of Refugees and of the following 1967 Protocol, and enconunter some thorny probloems such as some rejection from the local population and finally the limited ability to finance and hospitalize migrant and refugees. The article also explains that for solving the problem, cooperation with other parties, such as International Organizations, and Regional and Bilateral cooperation is needed.
Topic:
International Relations, Migration, Refugees, and Conflict
Political Geography:
Indonesia, Asia, and Southeast Asia

15. Rising in the East: A Regional Overview of the Islamic State’s Operations in Southeast Asia

Author:
Amira Jadoon, Nakissa Jahanbani, and Charmaine Willis
Publication Date:
07-2020
Content Type:
Special Report
Institution:
The Combating Terrorism Center at West Point
Abstract:
In 2016, the Islamic State acknowledged a series of pledges from Southeast Asian militant groups by declaring Isnilon Hapilon of the Abu Sayyaf Group to be the regional emir and encouraging local supporters to travel to the Philippines to wage jihad. Since 2016, a wave of Islamic State-linked attacks, including attempted and successful suicide attacks across the region, as well as the Marawi siege in 2017 by Islamic State-linked groups, has raised significant regional security concerns. Critical questions about the growing influence of the Islamic State in Southeast Asia, the interconnectedness of Islamic State affiliates, and the risks associated with returning fighters from Iraq and Syria remain unanswered. In the first of a four-part series on the Islamic State in Southeast Asia, this report sheds light on the overarching characteristics of Islamic State-linked operations across Indonesia, Malaysia, and the Philippines between 2014 and 2019, highlighting how the Islamic State’s arrival has affected regional militancy. Drawing on open-source materials, the report maps the characteristics and regional dispersion of Islamic State-linked activity in the region, providing regional and country-level context for the nature of the threat. Additionally, the report identifies six regional militant groups as the Islamic State’s operational affiliates, defined as groups that have claimed attacks concurrently with the Islamic State. The findings of the report draw attention to a marked increase in the use of Islamic State-linked suicide attacks and lethality in 2019, and significant numbers of failed and foiled attacks by Islamic State-affiliated or -inspired individuals in Indonesia and Malaysia. While the most important dimension of the Islamic State threat may be the existing militant infrastructure offered by its operational alliances in the Philippines and Indonesia, the threat in Malaysia exists in the form of independent plotters and radicalized individuals who present a pool of potential recruits for existing networks of militants in the region.
Topic:
International Cooperation, Terrorism, Non State Actors, Counter-terrorism, and Islamic State
Political Geography:
Indonesia, Malaysia, Asia, and Philippines

16. Politics in Indonesia: Resilient Elections, Defective Democracy

Author:
Ben Bland
Publication Date:
04-2019
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
he pressures on Indonesian democracy are not likely to abate under a second-term Jokowi or a Prabowo presidency. Incumbent President Joko Widodo is the front-runner to defeat long-time rival Prabowo Subianto in Indonesia’s fourth direct presidential election on 17 April. Constrained by compromises and knocked off balance by the rise of identity politics, if Jokowi wins a second (and final) term, he is unlikely to make significant progress on much-needed economic, legal, and political reforms. Despite these concerns, there is hope for the future with a new generation of politicians from outside the elite now seeking to follow Jokowi’s path to national office. Indonesia’s future will depend on how far they use their electoral mandates to shake up a defective system.
Topic:
Politics, Reform, Elections, and Democracy
Political Geography:
Indonesia, Australia, and Asia-Pacific

17. Administering the Regional Dynamics: The Success Story of Indonesia and ASEAN

Author:
Muhammad Habib Abiyan Dzakwan
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
Back in early 1960s, it was unthinkable for Southeast Asia to have one single regional ‘home’ as diversity among countries within the area are just too wide. The political systems they adhere, the dominant religions they believe, the languages they speak, the economic situation they experience, the geographical regionalism was definitely the least thing on their shopping list bearing in mind the state of domestic dynamics during their formative years. But, now the situation has turned for one hundred and eighty degrees. Right on Thursday 8 August 2019, the ten Southeast Asian states —Brunei Darussalam, Cambodia, Indonesia, characters they are endowed are just a few examples. These countries at that time were also relatively new in practicing their respective sovereignty. Advancing imaginations about Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam— just celebrated the inauguration of a new secretariat building for the Association of Southeast Asian Nations (ASEAN) which also remarked the 52nd anniversary of this organization. This remarkable story undeniably could not be detached from Indonesia’s long standing efforts in ASEAN. Therefore, throughout the following paragraphs, this article aims to briefly discuss three issues - the origins of ASEAN, Jakarta’s contribution to regional dynamics, and ASEAN achievements with regard to the great powers.
Topic:
Regional Cooperation, Religion, Culture, Language, and Regionalism
Political Geography:
Indonesia, Asia, Vietnam, Philippines, Cambodia, Singapore, Thailand, Southeast Asia, and Myanmar

18. Social Justice Leaders in Action: IFP Impacts in Asia

Author:
Mirka Martel
Publication Date:
03-2019
Content Type:
Special Report
Institution:
Institute of International Education
Abstract:
The second report from our 10-year impact study of the Ford Foundation International Fellowships Program (IFP), Social Justice Leaders in Actionprovides an in-depth look at the lives and careers of IFP alumni in three Asian countries—India, Indonesia, and the Philippines—detailing the different pathways alumni have taken and the ways they have leveraged their skills and networks to effect change. Drawing upon focus groups and interviews with 274 IFP alumni and community stakeholders, this qualitative research highlights the stories behind the numbers shared in the study’s first report, Social Justice and Sustainable Change: The Impacts of Higher Education, released in April 2016. The findings from Social Justice Leaders in Action provide insights not only at how life-altering IFP was at an individual level, but how that transformative power extends through alumni to their organizations, communities, and societies.
Topic:
Education, Social Justice, Higher Education, and Sustainability
Political Geography:
Indonesia, India, Asia, Philippines, North America, and United States of America

19. Examining the Growth of Islamic Conservatism in Indonesia: The Case of West Java

Author:
Irman Lanti, Akim Ebih, and Windy Dermawan
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies (NTS)
Abstract:
With 48 million people, West Java is Indonesia’s largest province in terms of population. Historically, it has served as the cradle of Islamic conservatism in Indonesia. Modernist Islamic parties and candidates that espouse a purist and orthodox form of Islam always won the free and fair elections in this province. It was also the centre of Indonesia’s Islamic rebellion, the Darul Islam / Tentara Islam Indonesia (DI/TII). The Islamic landscape of West Java, however, is not that much different from that of Central and East Java, which is based on Islamic traditionalism. The differences in the socio- political outlook between West Java and other major provinces in Java are due to historical reasons and set it apart from the pattern developed in the others. With the arrival of the new dakwah movements influenced by the Islamic transnational forces, Muslims in West Java are embroiled in an ambivalent position. On one hand, the new movements are considered as bringing a renewed sense of vigour for the Islamic dakwah in this region, but on the other hand, they are also seen as a threat to the common religious practices there. There are indications that conservative West Java is undergoing a further conservative turn, especially judging by the recent voting pattern in the province. However, there is also signs that the threat brought by the new dakwah movements might produce a turnaround away from the deepening of conservatism there.
Topic:
Islam, Religion, Domestic politics, Conservatism, and transnationalism
Political Geography:
Indonesia, Asia, and West Java

20. Capturing Anti-Jokowi Sentiment and Islamic Conservative Masses: PKS 2019 Strategy

Author:
Adhi Priamarizki and Dedi Dinarto
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies (NTS)
Abstract:
This paper examines the Prosperous and Justice Party (PKS)’s strategy in the 2019 Indonesian general elections. Among the Islamic-based political parties, PKS gained the most significant increase in votes. We aspire to understand the breakthrough by looking at the party’s strategy. On the one hand, our findings confirm the existing studies that correctly noted the moving of Indonesian political parties towards a “catch-all” direction by which they aim to garner wider support beyond a specific type of voter base. On the other hand, our research notes that PKS has started to exploit the phenomenon of rising Islamic conservatism in Indonesia. Despite solely maintaining an inclusive electoral strategy, this research asserts that the party has adjusted its campaign strategy to fit in with the trend of rising Islamic conservatism while concurrently exploiting the anti-incumbent president (Joko Widodo) sentiment. This paper aims to enhance discussion on Indonesian politics as well as Indonesia’s political parties, particularly the PKS.
Topic:
Islam, Religion, Elections, Domestic politics, and Conservatism
Political Geography:
Indonesia and Asia