Indonesia Project News No. 23, January-June 2017

 

Indonesian President Jokowi had a dialogue with the Head of ANU Indonesia Project Associate Professor Budy Resosudarmo.

Indonesian President Jokowi had a dialogue with the Head of ANU Indonesia Project Associate Professor Budy Resosudarmo.

Activities

There were several highlights in the Indonesia Project calendar for the period January–June 2017.

The Head of the ANU Indonesia Project, Associate Professor Budy Resosudarmo attended a State lunch on 26 February in honour of His Excellency Mr Joko Widodo, President of the Republic of Indonesia and Her Excellency Mrs Iriana Joko Widodo, at Admiralty House in Sydney. Among the 26 guests from Australia were the Honorary MPs Malcolm Turnbull, Bill Shorten, Julie Bishop, Steven Ciobo and Tony Smith, as well as Rear Admiral Stuart Mayer CSC and Bar RAN. The ANU Indonesia Project was the only Australian research institute represented at the lunch.

Dr Resosudarmo had the opportunity to discuss with President Widodo the important work of the ANU Indonesia Project. The President encouraged ANU to continue producing high quality analysis on Indonesia. Dr Resosudarmo was also able to talk with a number of Ministers from the Indonesian Cabinet and senior government officials. In addition to highlighting the activities of the ANU Indonesia Project, Dr Resosudarmo provided analysis on issues related to trade conditions between Australia and Indonesia, the current Jakarta governor election, Indonesian students in Australia, and Australian tourism in Indonesia.

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ANU Indonesia Project represented with Hal Hill with Indonesian Finance Minister Sri Mulyani Indrawati, Secreatry General of Indonesian Ministry of Finance Hadiyanto, Head of Fiscal Policy Agency Suahasil Nazara, Australian Ambassador to Indonesia Paul Grigson.

ANU Indonesia Project represented by Hal Hill with Indonesian Finance Minister Sri Mulyani Indrawati, Secreatry General of Indonesian Ministry of Finance Hadiyanto, Head of Fiscal Policy Agency Suahasil Nazara, Australian Ambassador to Indonesia Paul Grigson.

 

The tenth High Level Policy Dialogue (HLPD) was held in Jakarta on 26–27 April. This annual meeting brings together academic scholars and top policy makers from Indonesia and Australia to discuss some of the most pressing issues facing Indonesia’s economic development. The 2017 HLPD, attended by over 80 people, was organised around the general theme of ‘inequality’, a highly topical and important theme worldwide. In Indonesia inequality has risen significantly since around 2000. The meeting commenced with a welcoming address by Australia’s Ambassador to Indonesia, HE Paul Grigson. This was followed by a keynote speech by the Indonesian Minister of Finance, HE Sri Mulyani.

The meeting was divided into three sessions – Session 1 was dedicated to Indonesia’s Development Trends, Social Aspects and its Implications on Inequality; Session 2 to the Digital Economy, Technological Change and its Benefits to the Economy, including Reducing Inequality; and Session 3 to Reducing Inequality through Fiscal Policy and Local Governance Improvements. On 28 April, ANU staff led by Hal Hill prepared a communique and presented it to the Minister of Finance with representatives from DFAT – Australian Aid (Stephen Barraclough and Bede Moore).

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FKP Roadshow in Banda Aceh in March

FKP Roadshow in Banda Aceh in March

 

The 2017 Forum Kajian Pembangunan (FKP) Roadshow was conducted at Universitas Hasanuddin in Makassar (20 March), Universitas Syiah Kuala in Banda Aceh (21 March) and Universitas Andalas in Padang (22 March). The topic of this year’s Roadshow was rural development, with speakers Budy Resosudarmo (ANU Indonesia Project), Heni Kurniasih (SMERU Research Institute) and Hefrizal Handra (Universitas Andalas and Program KOMPAK) presenting at all three cities. Other researchers joined the presentation in Makassar (Sabir) and Banda Aceh (Nazamuddin and Juanda). Altogether, almost 300 people attended the Roadshow.

Videos and presentation files from the 2017 FKP Roadshow can be accessed on the FKP website, www.fkpindonesia.org.

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2017 Sadli Lecture. Photo courtesy of Moekti Soejachmoen.

2017 Sadli Lecture. Photo courtesy of Moekti Soejachmoen.

 

On 9 May 2017, the LPEM Faculty of Economics and Business, Universitas Indonesia (FEB UI) and the ANU Indonesia Project convened the 11th Sadli Lecture in Jakarta.  This year’s Sadli Lecture speaker was Muhamad Chatib Basri of Universitas Indonesia and CReco Consulting, and former Minister of Finance (2013-2014). His lecture, entitled A tale of two countries: India and Indonesia, a lesson learned from the 2013 Taper Tantrum, addressed the negative impact of Quantitative Easing on several EMs, including Indonesia and India, and how their exchange rates weakened dramatically, and their stock and bond markets were hard hit.

The speech was introduced by Professor Ari Kuncoro (Dean of FEB UI). HE Dr Sri Mulyani Indrawati, Indonesia’s Minister of Finance, delivered keynote remarks and questioned whether Indonesia has learned from the 2013 taper tantrum episode to be more resilient should a future episode occur. The first discussant, Professor Mari Pangestu, raised the political economy aspects of the 2013 taper tantrum, and Reza Siregar, who at the time was an economist with Goldman Sachs, discussed private sector responses. More than 80 people attended the event, and livestreaming was available. Participants came from government, academia, and the private sector. Presentations are available for download, and part of the video recording of this event can be viewed through this link (the set is still in the process of editing).

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Professor Boediono, Indonesian former Vice President giving the keynote speech at the inaugural Mubyarto Public Policy Forum in UGM.

Professor Boediono, Indonesian former Vice President delivered the keynote remarks at the inaugural Mubyarto Public Policy Forum in Universitas Gadjah Mada.

 

The ANU Indonesia Project and the Faculty of Economics and Business, Universitas Gadjah Mada, jointly convened the inaugural Mubyarto Public Policy Forum (MPPF) on 10 May 2017 in Yogyakarta. Professor Boediono delivered keynote remarks entitled Beberapa catatan mengenai strategi pemerataan pembangunan (Notes on equitable development strategy). Professor Boediono’s remarks in full can be read on his Facebook page, through this link. Following the opening remarks, a panel of three speakers spoke on the issue of equitable development. The speakers were Professor Gunawan Sumodiningrat , Associate Professor Budy Resosudarmo and Dr Elan Satriawan. The second part of the MPPF was a lecture by Dr Muhamad Chatib Basri titled A tale of two countries: India and Indonesia, a lesson learned from the 2013 Taper TantrumDr Denni Puspa Purbasari was the discussant. Professor Chris Manning represented the Project and delivered the welcoming address.

Media coverage

The full video of the MPPF is available below.

https://www.youtube.com/watch?v=qDKmHbUlCFo

Presentations is available for download.

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ANU Indonesia Project and Vice Chancellor Brian Schmidt in Indonesia.

ANU Indonesia Project and ANU Vice Chancellor Brian Schmidt in Indonesia.

 

On Monday, 29 May 2017, the ANU Indonesia Project facilitated a meeting between ANU Vice-Chancellor Professor Brian Schmidt and Dean of ANU College of Asia and the Pacific (CAP) Professor Michael Wesley, and the Rector, Vice-Rectors, Deans and some faculty members of the University of Indonesia (UI). The ANU Indonesia Project also helped to organize a public lecture by the Vice-Chancellor (VC) at UI and a public lecture by the VC and the Dean of CAP at the Pullman Hotel – Thamrin. Budy Resosudarmo (ANU Indonesia Project) attended the meeting at UI.

Following the meeting with the UI Rector, Vice-Rectors and Deans, the VC conducted a public lecture entitled The Accelerating Universe. The public lecture was well attended, with the audience including about 100 students. The VC’s enlightening and lively presentation focused on how the universe is expanding at an accelerating rate. He covered the Big Bang Theory, the beginning of our universe and its expected end. A lively Q&A session followed. Media representatives attended the lecture, including Warta Ekonomi, UI media, and Net TV.

In the afternoon of the same day, the VC and Dean of CAP delivered two very stimulating lectures at the Pullman Hotel in Jakarta, which were organised by ANU in collaboration with the ANU Indonesia Project. Professor Schmidt talked about evidence and expertise in a post-truth world, stressing that we cannot solve the world’s pressing problems without a renewed respect for evidence and expertise. At the end of the public lecture, Professor Boediono delivered his remarks on globalisation. The Kompas daily newspaper article on the afternoon lecture is available (subscription only).

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Head of ANU Indonesia Project Blane Lewis

New Head of ANU Indonesia Project, Blane Lewis.

ANU Indonesia Project is pleased to announce that Associate Professor Blane Lewis was appointed to replace Associate Professor Budy Resosudarmo as the new Head of the ANU Indonesia Project at the end of May 2017. Blane Lewis joined the ANU Indonesia Project as a senior research fellow and editor of the Bulletin of Indonesian Economic Studies in 2014. Before that he worked for many years as a policy adviser in Indonesia, mostly on matters related to fiscal decentralisation, under the auspices of the Harvard Institute for International Development, the Research Triangle Institute, and the World Bank, amongst others. He has also taught at Cornell University and the National University of Singapore. Staff at the ANU Indonesia Project warmly welcome Associate Professor Lewis to the role of Head of the ANU Indonesia Project and would like to extend their gratitude to Associate Professor Resosudarmo for his tireless work in leading the Project over the last 6 years.

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Other activities

In the April 2017 issue (53.1) of the Bulletin of Indonesian Economic Studies (BIES), Sarah Xue Dong and Chris Manning, in the latest Survey of Recent Developments, focus on the testing times facing Indonesia’s labour market. There are three articles in the April issue. Dias Satria and Elton Li examine the informal contractual relationships formed by artisanal fishers and intermediaries; Eusebius Pantja Pramudya, Otto Hospes, and C. J. A. M. Termeer analyse the different roles of the Indonesian state in arranging finance schemes for palm-oil development since 1945; and Magda Tsaneva examines the role of parental preferences in human capital accumulation. The authors in April’s book-review section respond to recent publications on, among other topics, decentralisation and the Maluku conflicts; economic change in Indonesia since the early 1900s; Indonesian women and local politics in the post-Soeharto era; and the Constitutional Court and its role in shaping the country’s legal system and, more broadly, Indonesian democracy.

To read, submit, or subscribe to BIESvisit Taylor & Francis Online. You can also follow the journal on Twitter and Facebook.

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In the first half of 2017, the Forum Kajian Pembangunan (FKP) continued to expand both in terms of the number of events and audience size. The FKP held 22 events, including 5 special events. The five special events included the FKP Roadshows in Makassar, Banda Aceh and Padang (reported here), The Thee Kian Wie Lecture in April hosted by LIPI (reported here), and the 11th Sadli Lecture in May hosted by LPEM FEB UI and the ANU Indonesia Project (reported here).

Several regular FKP seminars also drew large audiences, including the first FKP of 2017 comprising a panel on Indonesia’s trade performance, and the two events hosted by Bank Indonesia in February on the global value chain in the automotive industry and on the effects of the supply and demand of foreign currency on the Rupiah exchange rate. The FKP now has a dedicated website, www.fkpindonesia.org (still under development), where links to schedules, summaries, presentation files and videos are centralised.

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Indonesia Study Group by ANU Indonesia Project - Greg Fealy

Ten Indonesia Study Group (ISG) seminars were held in the first half of 2017, with topics including economics, social change, climate change and politics.

One of the highlights was the first ISG Roadshow, held at Murdoch University in Western Australia. The topic was the 2017 Jakarta gubernatorial elections. This Roadshow was unique for being an interactive seminar between the panelists and audience at Murdoch University and the audience at ANU who interacted and held discussions during the seminar via livestreaming. View the video of the ISG Roadshow on the Jakarta gubernatorial elections.

Two other large ISG seminars were also held in this semester. The first talk was given by Marcus Mietzner and Edward Aspinall on the Jakarta Elections from national and local perspectives. In June, Greg Fealy gave a talk entitled Islam in Australian-Indonesian Relations: fear, stereotypes and opportunities. Most of the seminars were recorded and the files are available on the ISG webpage.

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The ANU Indonesia Project would like to congratulate Ms Sarah Dong on being awarded an ANU Indonesia Project Research Fellowship for a period of two years. Sarah will work on the following research activities: Marriage Law Reform in Indonesia; Women and Work since the Asian Financial Crisis; Gender Effects of the Indonesian Cash Transfer Program Keluarga Harapan (PKH); and Tax Compliance and Improvement in Indonesia.

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Congratulations to Akhmad Rizal Shidiq, Budi Aji, Ludia Wambrauw, Putu Natih and Rima Artha for being granted visiting fellowships at ANU under the ANU Indonesia Project Visiting Fellows Program.

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As part of the Visiting Fellows Program, Ms Imelda (University of Hawaii), who is supervised by Dr Budy Resosudarmo, visited the Project from 19 May to 2 July 2017. Imelda conducted research for her PhD on LPG subsidies in Indonesia (particularly fuel switching and infant health). She also presented at the ACDE Trade and Development PhD Seminar Series on 26 May 2017. The topic was ‘Fuel switching and infant health: evidence from the LPG subsidy in Indonesia’.

As recipient of the Thee Kian Wie Distinguished Visiting Professorship, Dr M Chatib Basri (University of Indonesia and CReco Consulting) paid the Project a second visit from 22 May to 10 June as part of his year-long tenure. During his visit he conducted a briefing for DFAT on recent economic developments and trade; gave an Arndt-Corden Department of Economics Seminar on ‘What can ASEAN do in the midst of the ‘New Normal’? ; and gave a lecture on the Indonesian economy at the Centre for Development Economics and Sustainability at Monash University.

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The ANU Indonesia Project and the SMERU Research Institute would like to congratulate the 24 recipients of the 2017–2018 Research Grants awarded as part of the Research Network Program. There were many excellent applications for this year’s grants and the research recipients were selected after a rigorous selection process.

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There are six recipients of this year’s round of Research Travel Grants, who will be conducting their research in Indonesia. Congratulations to Masayoshi Ike, Amara Steven, Bronwyn Jones, Sarah Stephen, Veronica O’Neill and Owen James.

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Other seminars

In January 2017, the Head of the ANU Indonesia Project visited the economics faculties of three universities in Indonesia to hold discussions with their academic staff about ways to reform their economics programs (jurusan ekonomi) so their products better equip students who might want to pursue a higher degree abroad, particularly in Australia.  The faculties visited were the Faculties of Economics at Hasanuddin University, Sebelas Maret University and Bogor Agricultural University, or Institut Pertanian Bogor – IPB.

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Associate Professor John McCarthy from ANU Crawford School of Public Policy and Indonesia Project academic staff spent two weeks at the Indonesian Ministry of Spatial and Agrarian Planning participating in discussions relating to Indonesian Land Law. Dr McCarthy met with the Indonesian Minister of Spatial and Agrarian Planning, Dr Sofyan Djalil, on two occasions, the second time giving a presentation regarding his suggestions for a possible way forward with the revised land law.

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Budy Resosudarmo and Chris Manning from the ANU Indonesia Project briefed the Australian Department of Foreign Affairs and Trade (DFAT) in Jakarta on 15 March 2017.They presented their findings on two topics, the first on labour market challenges and policies in an era of uncertainty and slower economic growth, and the second topic on traditional social institutions and development outcomes in Eastern Indonesia.

Chris Manning spoke about labour issues. He argued that Indonesia currently faces two major challenges in an unpredictable international and domestic environment: providing people with better, more secure jobs, and raising productivity to help improve living standards and reduce poverty. Budy Resosudarmo discussed development in Eastern Indonesia. Despite decent macroeconomic growth during the last 14 years, Eastern Indonesia is still plagued by persistent income poverty and rising income inequalities. The discussion was attended by approximately 30 people from DFAT and related agencies. It was opened by Steven Barraclough, the head of the Economics Section, and was chaired by Bridie Rushton.

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FORTHCOMING

Events in Indonesia from July to December 2017 include the 2017 Hadi Soesastro Policy Forum which will be held on 4 July in Jakarta. The Indonesia Update book from the 2016 conference, Digital Indonesia: connectivity and divergence will be launched for the first time at this forum, and Professor Peter Drysdale from ANU will present the Hadi Soesastro Lecture entitled Why Indonesia must show the way on trade strategy.

Professor Drysdale will also deliver this lecture at Padjadjaran University, Bandung on 5 July 2017. The Update 2016 book will also be launched in Manado at Universitas Sam Ratulangi on 5 July  and in Bandung at Institut Teknologi Bandung (ITB) on 6 July.

The Indonesia Project is also providing support for this year’s Indonesian Regional Science Association (IRSA) conference in Manado on 17-18 July 2017.

The BIES Economic Dialogue and Forum will take place in mid-December.

Events in Australia from July to December 2017 include three launches of the 2016 Update book, namely during the Indonesian Council Open Conference 2017 at Flinders University on 3 July, at Sydney University on 28 July, and in Canberra in early August.

Indonesia Update Conference 2017. Globalisation, nationalism and sovereignty. Canberra, 15-16 September 2017.

Indonesia Update Conference 2017. Globalisation, nationalism and sovereignty. Canberra, 15-16 September 2017.

 

The Indonesia Update 2017 will take place on 15–16 September, and this year’s topic is

Indonesia in the new world: globalisation, nationalism and sovereignty. The conference is free of charge. Registration is now open.

»  find out more

 —— (end of newsletter)

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