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This study adds to the studies about the impact of the 2008 Global Financial Crisis (GFC) on Indonesia’s economy both at the macro- and microeconomic levels. Kota (City of) Pekalongan was chosen because of the facts that the city is a Community-Based Monitoring System (CBMS) area in Indonesia and that there is household-level data available in the city.


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To avoid the middle income trap, Indonesia needs to start shifting its economy to higher-value products, which requires a workforce that has an increasingly high level of knowledge, skills, and competencies. This implies that Indonesia needs to put more serious effort into the improvement of the quality of its education system.


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Targeted cash transfer programs have been an important policy tool in developing countries. This paper considers (i) how the timing of transfers affects household expenditure and labor supply responses, and (ii) how household expectations shape our interpretation of those responses.


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One of the key challenges on delivering benefits of poverty programs to the poor is to ensure that the beneficiaries of the programs are indeed the targeted population. This paper aims at assessing the implications of poverty dynamics on the accuracy of targeting, using a three-year panel data from Indonesia.


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This study presents evidence from Indonesia on how the country’s recent periods of economic growth have contributed to poverty reduction at the regional level, with a particular emphasis on the role of decentralization. Over the past decade Indonesia has made significant progress in reducing poverty, from 23% of the population in 1999 to less than 12% in 2013.


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