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This is the first issue of the SMERU Research Institute's newsletter after our researchers decided to continue SMERU's work as a fully autonomous organization. During the previous two years, administratively we worked under the auspices of the World Bank. However, in terms of the selection of topics, direction and research methods, the staff at SMERU were largely able to demonstrate a considerable degree of independence.


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For the past few months the position of fuel subsidies has been one of the most prominent issues in many discussions about the national economy as the Indonesian government considers the pros and cons of a signifi cant reduction or the complete removal of these measures. What will be the likely reaction of the wider community if these subsidies are removed?


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In this edition, we invite our readers to broaden their understanding of the multi-dimensional character of poverty in Indonesia as well as relating some of the efforts to engage in more effective poverty reduction.


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In this edition of the SMERU Newsletter, we focus our attention on rural issues and the agricultural sector. Even though the numbers have been declining, around 60% of Indonesia’s people still live in rural areas, and the agricultural sector still provides the main source of income for around 45% of the population.


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Welcome to the first edition of the SMERU Newsletter in our second year as an independent organization. This edition focuses on various issues concerning the determination of minimum wages. From April to Oktober 2001, SMERU conducted a major study in this area, using both qualitative and quantitative approaches. A summary of the main findings of our work is presented in this edition.


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