ANU INDONESIA PROJECT NEWS No. 16 July-December 2013

 By Trish van der Hoek

ANU INDONESIA PROJECT NEWS No. 16 July-December 2013

There were several highlights in the Indonesia Project calendar for the period July-December 2013: The Australian National University award of honorary doctorates to the Indonesian Vice President and the Minister of Tourism and Creative Industries; the 31st Indonesia Update conference; and the preparatory meeting for the High Level Policy Dialogue (HLPD) 2014.

The Indonesian Vice President, Dr Boediono, was awarded an honorary doctorate from The Australian National University on 13 November 2013. Dr Boediono was a junior staff member in what was formerly known as the Research School of Pacific and Asian Studies (RSPAS) at ANU in the early 1970s. He also spent a year in RSPAS’ economics department in 1978, writing up his doctoral dissertation.  He has maintained a close working relationship with ANU Indonesia Project for over forty years. He has served on the Editorial Board of its Bulletin of Indonesian Economic Studies (BIES) since 1984, has contributed articles to the BIES, and has been a frequent speaker at the Project’s various activities, including the 2005 Indonesia Update.

Dr Boediono acknowledged that many Indonesian and Australian colleagues have worked at the ANU to deepen mutual understanding and to strengthen links between Indonesia and Australia.

Dr Boediono also delivered the ST Lee Lecture on Asia and the Pacific on the same day. Attended by approximately 350 people, including various dignitaries, government officials, academics, students and media, the Lecture was chaired by Professor Andrew MacIntyre, Dean of ANU College of Asia and the Pacific. Professor MacIntyre described Dr Boediono’s long standing association with ANU Indonesia Project in his introduction.

Dr Boediono presented a lecture on the political economy of governance and public policy in Indonesia, sharing his thoughts on three major issues: democracy, decentralisation and the anti-corruption drive, and how they have fundamentally transformed governance in Indonesia.

Several interesting questions were raised during the Q&A session, including questions on the economics regime, Bank Century, asylum seekers and the bilateral relationship between Indonesia and Australia.

Listen to Dr Boediono’s acceptance speech here.

Selected media reports (in Bahasa Indonesia) on Dr Boediono’s visit to ANU: Radio AustraliaTempo (1), Tempo(2), Kompasdetiknews.

More photos are available on the Indonesia Project’s Facebook page.


HE Dr Mari Pangestu, Indonesian Minister for Tourism and Creative Economy, received her honorary degree from The Australian National University on 17 December 2013. She was awarded the degree of Doctor of Letters honoris causa on the grounds of her outstanding contributions to society. ANU Chancellor, Gareth Evans AC QC, awarded the degree during the ANU College of Business and Economics’ Graduation Ceremony at the Llewellyn Hall.

HE Dr Mari Pangestu during the graduation ceremony

In her acceptance speech, Dr Pangestu reminisced about her time spent at the ANU, where she obtained her Bachelor and Masters degrees. Despite doing her PhD in the US, her closest ties are to the ANU, especially with former professors who have now become close friends and colleagues. She commented, “I can attest that a degree from this institution (ANU) and the networks built from being in this institution have lifelong benefits for me and other graduates. Living proof of this is the fact that three of the current Indonesian cabinet are ANU graduates”.

Dr Pangestu spent most of her academic career doing research on deregulation, analysing first best policy options and the importance of removing distortions, undertaking empirical work to show the benefits as well as the costs, and investigating the political economy implications, using her research to advocate for good policy and as a basis for public discourse.

The conferring degree ceremony was followed by an informal roundtable meeting with selected ANU academics and PhD students, chaired by Professor Hal Hill. Among those who attended were James Fox, Kathryn Robinson, Jacqui Baker, Anthony Reid, Budy P. Resosudarmo, Peter McCawley, Ross McLeod, Terry Hull, Greg Fealy, Adrian Hayes, Peter McDonald, Iwu Utomo and Ariane Utomo.

Dr Pangestu laid out the prospects for and challenges faced by Indonesian tourism and the creative economy. A lively discussion followed.

More information is available about Dr Mari Pangestu’s honorary degree from the ANU in a comprehensive article posted on the Indonesia Project Blog, as well as in the Canberra Times and Republika Online. See more photos of the event on the Indonesia Project’s Facebook page.


Another highlight was the 31st Indonesia Update conference, held in the ANU Coombs Lecture Theatre on 20-21 September. This year’s theme was Regional dynamics in a decentralised Indonesia, convened by Hal Hill, H.W. Arndt Professor of Southeast Asian Economies. With more than 450 people in attendance during the two days, this Update was one of the Indonesia Project’s largest.

Andrew MacIntyre, Dean of the ANU College of Asia and the Pacific, opened the conference and also chaired the Political Update. Dave McRae, from the Lowy Institute, presenter of this year’s Political Update, explained in great length the likelihood of Jokowi or like-minded candidates winning next year’s election, as well as the current impediments in Indonesia’s political arena. Philips Vermonte, from CSIS, discussant, explained what it would mean for Indonesia should Jokowi win the election.

In the Economic Update, Jason Allford (The Treasury) and Moekti Soejachmoen (SEADI-USAID) explained that the Indonesian economy is looking solid in 2013, although it faced several pressures, such as the withdrawal of quantitative easing, a worsening balance of payments and the combination of higher inflation and reduced fuel subsidies. Riyana Miranti, from the University of Canberra, was the discussant in the Economics Update. The full papers for the Political and Economic Updates will be published in the December issue of the Bulletin of Indonesian Economic Studies.

The second session focused on the historical and political perspectives of decentralisation. The third session covered decentralisation and governance, and the last session on the first day was on local governance and reform. The end of the first day was followed by the conference dinner, which this year was held for 140 people at the Roti House in Civic.

The Update’s second day was as busy as the first. It opened with a session on local-level perspectives, followed by one on migration, cities and connectivity. The concluding session considered the challenges in Indonesia’s periphery.

For more detail on the conference proceedings, please see

The annual Mini Update was also held for the eighth time at the Lowy Institute, in Sydney, on 23 September. Approximately 70 people attended. It featured the Political and Economic Updates, as well as the theme of the Update itself, Regional dynamics in a decentralised Indonesia, with Dave McRae, Jason Allford, Moekti Soejachmoen, Cillian Nolan and Hal Hill as speakers. Audio recordings from the Mini Update are available from the Lowy Institute website. You can also read the Lowy Institute’s blogpost on the Indonesian economy, at The Interpreter.

Indonesia Update in the media

Hal Hill’s op-ed, Power Shift in Indonesia was published in The Australian on 18 September. You can also read the ANU College of Asia and the Pacific’s version. Tim Colebatch, Economics Editor at The Age, wrote Problems deferred become millstone for Indonesia, based on the Political and Economic Updates, quoting Jason Allford and Dave McRae. Christine McGrath, ABC’s Asia Editor and Political Editor of the Australia Network, conducted a television interview with Hal Hill, Philips Vermonte and Tommy Firman. Greg Earl, from the Australian Financial Review, wrote two articles drawn largely from the Update, Tony’s Big Adventure and Time for Abbott to reverse on Jakarta (both available only to subscribers). Bernard Lane, from The Australian, reported on the Mini Update: Jokowi a wild card for Indonesia. AIYA also wrote about some of the highlights from the Update in their blogpost.

This year, for the first time, the Indonesia Update had its own social media hashtag. By using #IndoUpdate13, the public could follow live tweets from the Update. There were approximately 70 Twitter posts over the two days, some of which are as follows:


All videos, podcasts and powerpoints from Indonesia Update 2013 are available on the ANU Indonesia Project’s Indonesia Update website.

More photos are available on the ANU Indonesia Project’s Facebook page.


The Indonesia Project organised the preparatory meeting for the High Level Policy Dialogue (HLPD) 2014, held at the ANU on 14 November 2013. Representatives from AusAID, the Australian Treasury, Indonesia’s Ministry of Finance, Bappenas, Bank Indonesia and ANU economics researchers attended the meeting. Representatives from the Ministry of Finance were Bambang Brodjonegoro (Vice Minister of Finance), and the following members of its Fiscal Policy Agency, Decy Arifinsjah   (Director of Regional and Bilateral Policy), Luky Alfirman (Director of Macroeconomic Policy), Dalyono (Division Head, Bilateral Policy), Subkhan (Division Head, Real Sector Analysis), and Bhayu Purnomo (Sub-Division Head, Investor Relation Unit); from Bank Indonesia, Yudha Agung (Director, Monetary Policy Group), Perry Warjiyo (Deputy Governor, Bank Indonesia); and from the Ministry of National Development Planning/Bappenas, Prasetijono Widjojo (Deputy Minister of Economic Affairs).

Professor Bambang Brodjonegoro, Indonesia’s Deputy Finance Minister, presented in great length how Indonesia dealt with recent economic development, policy responses, challenges and outlook. There were several key points of the presentation. Indonesia had continued to demonstrate strong and stable macroeconomic performance, shown by strong and consistent real GDP growth, moderate and sustainable inflation, comfortable foreign exchange reserves cushion with long run overall healthy balance of payment, continued improvement of bank financial soundness indicators, favorable debt position and sustainable fiscal deficit. Indonesia also continued to demonstrate strong economic fundamentals shown by the level of yearly GDP growth, household consumption and total investment. Indonesia’s economic growth is much stable compared to others in the region.

Professor Brodjonegoro pointed out the lesson the country learnt from previous crisis and the continuous reforms still being undergone. Compared to 1997, Indonesia was less vulnerable to external shocks.

In recent economic developments, commodity and energy price tended to decrease due to global economic slowdown, the quantitative easing was also tapering off, bringing the economy back to the equilibrium. Indonesia’s also facing current account deficit but with strong overall fiscal position, however, capital and foreign exchange market have been negatively affected, reversing much of the gains made over in 2012.

The global economic downturn also affected Indonesia’s balance of payment, influencing the Rupiah and pushing the foreign reserves down. However, compared to the 1997 Asian Financial Crisis, the foreign exchange reserves position was relatively better.

Professor Brodjonegoro also outlined the summary of reforms and policies undertaken by the government which include phasing in structural reforms through targeted fiscal policies, preserving monetary and foreign exchange stability, policies to curb inflation and stabilisation of currency and current account deficit. The presentation ended with the macroeconomics outlook, prospects, challenges and strategies for 2014. This was followed with a roundtable discussion.


Daniel Suryadarma has left the Project and is now a senior monitoring, evaluation and impact assessment scientist at the Center for International Forestry Research (CIFOR), in Bogor: Daniel acted as the Project’s Education Coordinator, monitoring teaching/training/PhD supervision activities of the Project’s academic staff. He was also in charge of the Project’s scholarship program and training activities in Indonesia. He co-edited the 2012 Indonesia Update book, Education in Indonesia, which has recently been published by ISEAS. More info here:

We wish him well in his new position and hope he maintains ties with the Indonesia Project.



Bulletin of Indonesian Economic Studies, July–December 2013

In the August 2013 issue of the Bulletin of Indonesian Economic Studies (BIES), Vikram Nehru uses his ‘Survey of recent developments’ to draw attention to Indonesia’s fluid political situation in the lead-up next year’s parliamentary and presidential elections. He also notes mixed policy developments and examines Indonesia’s social-assistance programs in the light of the fuel-price increase and the current government’s ambitious poverty-reduction target for 2014.

The three articles that follow Nehru’s survey discuss topical issues. Chris Manning and Devanto S. Pratomo ask, ‘Do migrants get stuck in the informal sector?’ – a pertinent question, given the growing numbers of migrant workers in Indonesia who move from rural to urban areas in search of better opportunities for themselves and their families. Using new empirical data from a tailor-made household survey, they test the often heard argument that most migrant workers and their offspring face great difficulties moving from low-paid, casual jobs in the informal sector to better-paid, continuing positions in the formal sector.

Yogi Vidyattama contributes a significant study of a regular theme in BIES: regional inequality in Indonesia. He investigates one of the main challenges of analysing sub-national data: how to account for the possible ‘neighbourhood effect’ (or how one region’s development can encourage development in its neighbouring regions) on the speed of regional convergence.

Losina Purnastuti, Paul W. Miller and Ruhul Salim investigate the returns to education, as Indonesia endeavours to reach the United Nations’ Millennium Development Goals as well as meet the national priority of improving access to and the quality of schooling. Using income and educational-attainment data from two rounds of the Indonesia Family Life Survey, 1993 and 2007–08, they investigate whether the rate of return to investment in education is likely to fall as the country’s education sector expands.

The August issue’s collection of recent abstracts of doctoral theses on the Indonesian economy includes studies of the country’s expanding electric power system; informal gold, tin and coal mining; corporate governance, firm performance and firm bribery; and the effects of trade-discriminative arrangements on foreign direct investment and foreign trade.

Its book reviews discuss Indonesia’s economic history from 1800 to 2010; poverty and social protection; corporate governance in Indonesian organisations; the effect of the global crisis on East Asia; ASEAN regionalism; the politics of religious identities in Southeast Asia; and the international-relations policies that have shaped the region.

In the December 2013 issue of BIES, which will soon be available online,Jason Allford and Moekti P. Soejachmoen’s Survey of recent developments’ examines the responses of the Indonesian government and the central bank to what appeared to be disappointing economic data released in August.

Indonesia weathered the 2008 global financial crisis better than many of its peers, yet flagging macroeconomic indicators contributed to the government’s decision to implement a policy package in August in a bid to deflect the situation. The Survey analyses the package, which includes, among other measures, increasing mineral exports by removing regulatory hurdles, as well as reducing oil imports by increasing the share of biodiesel in diesel fuel.

Acknowledging that Indonesia’s government has limited policy tools to deal with the short-term economic challenges, Allford and Soejachmoen argue that Indonesia therefore would do well to sustain deregulation. Yet they concede that it may be difficult for policymakers to reap the effects of such economic reforms before next year’s presidential elections.

In the 2013 politics update, Dave McRae assesses the so-called Jokowi effect – that is, the rise of Joko Widowo, the governor of Jakarta, from mayor of Solo to potential president. The polls are in Jokowi’s favour, but he has yet to announce whether he will run. McRae notes that this decision is up to former president Megawati Sukarnoputri, the leader of Jokowi’s party, who may again wish to run for office. Regardless of who Indonesia’s next president may be, McRae questions whether any leader can redress the entrenched defects of Indonesia’s democracy and the tackle the corruption that afflicts many of the country’s institutions.

Three further articles analyse specific issues in Indonesia’s economy. Lloyd R. Kenward reviews the history of inflation targeting in Indonesia since 1999, when Bank Indonesia (BI) adopted it as part of its monetary-policy toolset. Kenward examines BI’s performance in hitting its inflation targets against a discussion of its policy reactions in critical periods. He summarises BI’s record from two perspectives: a narrow, technical analysis; and a broader view of the bank’s accomplishments in inflation targeting.

Rudy Rahmaddi and Masaru Ichihashi use industry-level data from 1990 to 2008 to examine the effect of FDI on Indonesia’s manufacturing exports. They also assess the influence of private domestic capital investment, GDP growth and exchange rates in determining manufacturing export performance.

In the final article in this year’s volume, Tim Stapleton considers the potential of branchless banking to enhance financial inclusion and to connect Indonesia’s smaller enterprises to the world economy. Stapleton asks why the country has yet to undergo a branchless-banking revolution, given that its citizens are enthusiastic in adopting new information and communications technologies.

The December issue’s abstracts of doctoral theses on the Indonesian economy feature studies of contract farming among oil-palm smallholders, public-sector accounting reforms after Soeharto, agricultural transformation and the middle-income trap, determinants of labour migration in East Java, and regional dimensions of monetary policy.

Its book reviews includes discussions of Indonesia’s economic history, the role of infrastructure in connecting Asia’s economies, the development of Indonesia’s distinctive foreign policy, the distributional effects of fuel taxes and their implications for climate policy, the ‘conservative turn’ in Indonesian Islam, the economics of East Asian integration, changing marriage patterns in Southeast Asia, and how to sustain growth in Asia in the face of subdued global demand for its exports.

Read fuller previews of the contents of the August 2013 and December 2013 issues of BIES on the Indonesia Project blog, or read individual articles on Taylor & Francis Online (access required).


The “News from Indonesia” articles on the blog are weekly summaries of economic news that makes the headlines in the major news media in Indonesia. The objective of this series is to help Indonesian observers keep up with the most current economic issues in Indonesia, some of which are initially reported in Indonesian. While the series does not include any commentary from the Indonesia Project, nor does it necessarily reflect its views, it provides an array of snapshots for observers to investigate further.

These news articles can be viewed here.


Indonesia Study Group (ISG), July–December 2013

Fifteen ISG seminars were held in the second half of 2013. Three seminars were presented by Indonesia-based speakers: Kamala Chandrakirana from the UN Human Rights Commission, Hamdan Juhannis from the State Islamic University Makassar, and Meinarni Susilowati from the State Islamic University Maulana Malik Ibrahim, Malang. Two seminars were delivered by international speakers: Sulfikar Amir from Nanyang Technological University, Singapore, and Anne Booth from SOAS, London. Three speakers were from interstate and ADFA: Jean Gelman Taylor from UNSW, Nico Warouw from UNSW at ADFA, Jeffrey Neilson from Sydney University and Nicholas Herriman from La Trobe University. The rest of the speakers were from the ANU: Ann Kumar, Ed Aspinall, Peter McCawley, Greg Fealy, John McCarthy, and Virginia Hooker.

The topics presented ranged from Indonesian history, arts and humanities, poverty and resource-based industrialisation to multiculturalism, witchcraft provision, electoral politics, Islam, and religious intolerance in Indonesia. These seminars were attended mostly by academics, students and government officials in Canberra, with 30 people on average attending each seminar, in accordance with the numbers for the previous semester. The numbers of female attendees were approximately a third of the total.

We also welcomed Jacqui Baker and Arianto Patunru to the ISG committee board as of the second semester.

Podcasts for most of these seminars are available on the ISG website:


Seminar Series in Indonesia, July–December 2013

Forum Kajian Pembangunan, organised jointly by the ANU Indonesia Project and various institutions in Indonesia, continues to be a regular fixture for serious discourse on development policy in Indonesia. The second half of 2013 saw a total of 19 FKP events organised in Jakarta, Bandung (West Java), and Padang (West Sumatra), involving more than 26 speakers, 5 of whom were from overseas. Two new organisations hosted seminars, Paramadina University and the Center for Agricultural Socio Economic and Policy Studies of the Ministry of Agriculture, which hosted the FKP in October and November 2013, respectively.

In July, Bank of Indonesia hosted five rounds of discussions which, as in previous years, were very well attended, including by the Bank’s internal staff and management, which allowed for intensive discussion on the state of the Indonesian economy up to the second quarter of 2013.  Topics covered were transportation and development lessons for Indonesia; regional inflation and decentralisation; the financial crisis from the Islamic economics lens; the direction of Indonesian payment system development; and how trade liberalisation has affected poverty and labour markets in Indonesia.

In August, the State Ministry of National Development Planning (Bappenas) hosted two sessions, both focused on national-scale planning issues. The first concerns developing a multi-regional econometric model; this meeting was also one of the initial efforts for collaboration and technical discussions on econometric modeling amongst institutions in Indonesia. The second meeting hosted by Bappenas discussed regional development planning for 2015-2019.

The Indonesia Institute of Sciences (LIPI) hosted 5 speakers at 3 events in September. Topics covered were whether electrification had affected fertility in Indonesia (short answer: yes!); the role of local officials in Indonesia as a new democracy; the impact of universal healthcare coverage and preferences in South Sumatra; the Indonesia cash transfer program (BLSM); and access to energy amongst the rural poor in NTT.

The Graduate School of Paramadina University hosted the FKP In October, featuring internal as well as external speakers. Topics covered some paradoxes in Indonesian democracy; techniques for separating-out the multi-dimensional poverty of children using associate methods; and a forecast of the political trajectory in Indonesia post-2014.

In November 2013, the Center for Agricultural Socio Economic and Policy Studies of the Ministry of Agriculture (PSE) hosted 3 FKP discussions, one on the recently-completed Survey of recent development in Indonesia, published in the December issue of the Bulletin of Indonesian Economic Studies (BIES); another a study of price fluctuations and food security, a recent hot topic which consequently generated some press coverage; and lastly a CGE-model analysing the impact of the ASEAN Economic Community on regional agriculture in Indonesia.

Two FKP discussions took place in December, hosted by the Center for Economic and Development Studies, Padjadjaran University (CEDS, Bandung, West Java) and Andalas University (Padang, West Sumatra). Topics were the informal sector and women; development inequality; and the fiscal aspects of the public pension system.

For more details regarding FKP activities from July-December, please see the article on the Indonesia Project Blog. This article also includes attendance details. There were more attendees than in the first semester of 2013.

The detailed agenda of these group discussions are available on the website as well as the full seminar paper for most of them. FKP presentations have been recorded and uploaded to YouTube. In total, 43 FKP videos have been uploaded (including FKP special events videos). The three most viewed videos are the Gadjah Mada University panel discussion on illegal cigarette taxes, Matthew Wai Poi’s presentation on poverty targeting in the urban setting, and Rachma Indah Nurbani’s presentation on food price volatility.

Twelve of these videos have been edited for length by the ANU Indonesia Project (cleaned of empty screens, blurred visuals, transition pauses), and placed on a  memory stick together with the presentation files for distribution to universities and research agencies off Java, where internet connection is less reliable. These edited videos have also been uploaded to YouTube to replace the earlier versions.

The FKP Organizing Committee proposes to convene an FKP road show (3 cities outside of Java, LPEM and LIPI to coordinate); initiate FKP twitter blasts; and include hardcopies of presentations when distributing the edited FKP videos. The meeting also confirmed the 2014 hosting schedule, which is now finalised for all 12 months.

The times and venues of the FKP are on the website and they are free and open to the public. If you would like to subscribe to the email list, please send your contact details (including email address) to

BIES Economic Forum is a special event of the FKP that focuses on discussing and socialising a recent paper on a current relevant policy topic published in the BIES. The first seminar series of this BIES Economic Forum was held by CSIS and Andalas University in June-July 2013.

The second seminar series was held at three universities (Bandung-Malang-Denpasar) and this time on an article by Christopher Manning (ANU Indonesia Project) and Devanto Pratomo (Brawijaya University, Malang),  Do migrants get stuck in the informal sector? Findings from a household survey in four Indonesian cities.

On 2 December, Padjajaran University (Unpad), Bandung, was the first of the three universities to host this round entitled BIES Economic Dialogue – Urbanisasi: Pengharapan atau Pemiskinan? (Urbanisation: Hope or Impoverishment?). The panelists were Devanto Pratomo from Unibraw, Chris Manning from ANU, Tommy Firman from ITB, Kodrat Wibowo from Unpad, and Indrasari Tjandraningsih from AKATIGA, chaired by Natasha Ardiani from UKP4. The Dialogue was attended by approximately 80 people, students and lecturers from universities in Bandung including Unisba, Unpar, undergraduate, graduate and post graduate students. The Dialogue provoked many questions from twitter, text messages, and phone calls to the radio from as far away as Pattimura University in Ambon. The Dialogue was streamed live (through Unpad Channel) and broadcast live by PR-FM Radio 107.5FM, so it was simultaneously watched by audiences in Australia and Indonesia. The Dean of the Faculty of Economics and Business (FEB) Unpad, Nury Effendi, gave the welcoming remarks and Budy Resosudarmo from ANU Indonesia Project gave an introduction on BIES and how to publish in BIES.

The video from this event is available on the ANU Indonesia Project video channel.

The second university to host the Forum was Brawijaya University in Malang. Sitting in the panel were Devanto Pratomo and Chris Manning, Wildan Syafitri from Unibraw, and Nurhaena Bakhtiar from Hasanuddin University. It was opened by the Dean of Faculty of Economics and Business, Candra Fajri Ananda, and was attended by approximately 80 people, mostly post graduate, graduate and undergraduate students, lecturers from Unibraw and Muhammadiyah University Malang.

The final BIES Economic Forum was held on 4 December at Udayana University in Denpasar. Chris Manning and Devanto Pratomo were joined on the panel by  IKG Bandesa from Udayana University and Arief Yusuf from Unpad. The Forum was attended by approximately 40 undergraduate students and lecturers. It was opened by the Dean of Faculty of Economics, I Gusti Bagus Wiksuana.

For more details regarding this Forum please see the article on the Indonesia Project Blog.

Forum Kajian Pembangunan (FKP) on Disc

Since early August 2013, the Indonesia Project has been documenting the Forum Kajian Pembangunan (FKP) series on video. The idea is for each seminar to follow the same pattern in terms of preview, duration and contents. This video package is designed as support material for teaching activities on all Indonesian campuses. As the FKP has recorded many seminars, there were two main considerations in choosing the most appropriate ones, namely length and relevancy to Indonesia’s current economic challenges. Also, videos need to be no more than a year old so that themes remain relevant. As a result, from more than 25 available videos from August 2012 to August 2013, 12 videos were chosen for editing. Topics include supply side analysis, entrepreneurship, targeting of social programs, natural resources, infrastructure, service sector reform, health, agriculture, poverty, social protection, the industrial sector and trade. The videos have been saved onto a special disk. It took around three months from August to October to compile this video series and now the IP is attempting to add Powerpoint material.      


Visitor Program

Julius Mollett (Faculty of Economics, University of Cenderawasih) visited the Project from 15 July to 15August 2013. In collaboration with Budy Resosudarmo, Julius spent his time at the Project to prepare a paper to present at the 2013 Indonesia Update.   During his visit, Julius also had a chance to participate in the AusAID workshop by presenting a paper on recent development in Papua.

He also returned in September to present at the Indonesia Update Conference (with Budy Resosudarmo).

Moekti  P. Soejachmoen (Senior Economist at USAID and now TNP 2K) visited the Project from 14 to 29 September 2013. A former PhD student at ANU, Moekti returned to the Indonesia Project as co-author, with Jason Allford (Treasury), of the December 2013 ‘Survey of recent developments’, for the Bulletin of Indonesian Economic Studies. She and Jason also presented their Survey findings during the Economics Update of this year’s Indonesia Update conference, alongside discussant Riyana Miranti.

Guenther Schulze (University of Freiburg, Germany) was a Joint visitor with ACDE from 18 September to 30 October.He spoke at the Indonesia Update (with Bambang Sjahrir), and will contribute to the Update volume currently being edited by Hal Hill. He also examined a PhD thesis, and engaged in various other collaborative research projects in progress. He is also an adjunct professor in the department.

Guenther gave a Trade & Development Seminar, on 24 September, on ‘On the Heterogeneity of Terror’

Bambang Brodjonegoro presented a fiscal policy paper at the High Level Policy Dialogue Preparatory Meeting at the ANU on 14 November.


In May 2013 the Indonesia Project and SMERU Research Institute made a call for proposals for Research Grants 2013-2014. There were quite a number of applications and in July, after an extensive selection process, the following recipients were selected:

  • Ronnie S Natawidjaja (Padjajaran University) and Anoma Ariyawardana (University of Queensland), with the research topic: Horticulture commercial firm development in Indonesia.
  • Haryo Aswicahyono (CSIS), Dionisius Ardiyanto (ERIA) and Hal Hill (ANU), with the research topic: Life and death in a dynamic emerging economy: Firm level evidence from Indonesia.
  • Nulwita Maliati (Malikulsaleh University) and John McCarthy (ANU), with the research topic: Understanding vulnerability post tsunami and conflict in Aceh.
  • Nunung Nuryartono (Bogor Agricultural University) and Risti Permani (University of Adelaide), with the research topic: Local milk for local schools? Promoting food security by linking school milk programs (SMPs) with dairy industry development in Indonesia.
  • Aidah A A Husain (Hasanuddin University) and Naomi M Gardiner (James Cook University), with the research topic: Ecological assessment of coral reef fish assemblages across the Spermonde archipelago (Southern Sulawesi) to inform locally sustainable reef management initiatives.
  • Poppy Ismalina (Gadjah Mada University) and Minako Sakai (UNSW in Canberra), with the research topic: Building community resilience after the Merapi volcano disaster: A case study of state and private schemes for economic livelihood recovery initiatives in Central Java.
  • Sudi Mungkasi (Sanata Dharma University) and Gwyn Roberts (ANU), with the research topic: Flood modelling and simulations involving rainfall: Case studies in Indonesia
  • Joko Mariyono (Pancasakti University) and Tom Kompas (ANU), with the research topic: Social efficiency through internalisation of endogenous external costs in intensive vegetable production.

Congratulations to all recipients. We look forward to the results of your research.


The Indonesia Project has established Research Travel Grants to assist students who plan to undertake research or are currently undertaking research for which they will benefit from travel to Indonesia. The grant will be awarded to outstanding applicants who can demonstrate that travelling to Indonesia will contribute to their research on Indonesia. This grant is on offer for the first time in the 2014 academic year. The recipients are Leighton Gallagher (ANU), Edryan Hakim Ja’afar (RMIT) and Elizabeth Roberts (University of the Sunshine Coast). The grant will be reviewed in 2015 and may be continued subject to the availability of funding. For more information, see the following webpage


Indonesia Project Library

After an intensive year of renewal, the Indonesia Project library is transformed. Almost 50 percent of the collection has been scanned and saved in pdf format. Based on the FileMaker database information, around 1,615 out of 3,567 of the library’s collection of books, journals, doctorate theses, regional profiles, and datasets have been converted into pdf files. This effort accomplishes two objectives at the same time, both preserving old material and assisting users in finding material. 


The Indonesia Project Annual Report for 2012 is now available on the web


Upcoming Events

The topic of the 2014 Indonesia Update will be The SBY presidency. Convened by Dirk Tomsa (LaTrobe University), Ed Aspinall (ANU) and Marcus Mietzner (ANU), it will held on 19-20 September in the Coombs Lecture Theatre, ANU.

In 2014, the Susilo Bambang Yudhoyono presidency draws to a close after ten years, marking a watershed in Indonesian history. Yudhoyono was not only the first directly elected Indonesian president, he was also the first to be democratically re-elected. His presidency was a critical period of democratic consolidation after the turbulent political transition and economic crisis of the late 1990s. The 2014 Indonesia Update will evaluate the Yudhoyono presidency, its achievements and its failings, the role of Yudhoyono the man, and of the major political forces and institutions he presided over.  Topics to be covered include economic policy and performance, security sector reform, human rights and the rule of law, democratic institutions, policy making, decentralization and foreign policy.

The forthcoming Hadi Soesastro Forum in Jakarta will be held in early June 2014. The keynote speaker will be Professor Iwan Jaya Azis, Head of Regional Economic Integration from the Asian Development Bank (ADB). The book from the 2013 Indonesia Update, Regional dynamics in a decentralised Indonesia, edited by Hal Hill (ANU), will be launched at the Forum. The Forum will also feature a mini update on recent political and economic developments in Indonesia, as well as presentations on several chapters of the book.

Each year, in cooperation with the Indonesia Project, the Institute of Economic and Social Research (LPEM) of the University of Indonesia holds the Sadli Lecture Series in Economic Policy. The lecture is based on a commissioned paper on Indonesia in comparative economic perspective, which is published in the August issue of the Bulletin of Indonesian Economic Studies. The topic of The Eighth Sadli Lecture is The demography of Indonesia in comparative perspective, to be delivered by Peter McDonald, Professor of Demography at The Australian National University and Director of the Australian Demographic and Social Research Institute. The time and place for this event have yet to be determined and will be posted on the following website


Staff Appointments: The Arndt-Corden Department of Economics (ACDE) within the Crawford School of Public Policy is seeking to appoint two academic staff members.

Firstly, ACDE seeks an outstanding senior economist to make a significant contribution to the Department’s research effort on Asia and the Pacific, specifically Indonesia as a Fellow or Associate Professor at level C-D, for a fixed term of 3 years.

The closing date for the application is 2 January 2014. For further information regarding this position see

Secondly, ACDE is looking for an outstanding early career economist to carry out frontier research on applied economics focused on Indonesia, as a Research Fellow or Fellow at level B-C for a fixed 3 year term.

The closing date for the application is 2 January 2014. For further information regarding this position see