THE SITUATION OF CHILDREN AND WOMEN IN INDONESIA 2000-2010 24
THE SITUATION OF CHILDREN AND WOMEN IN INDONESIA 2000-2010 25
and 33 provinces and special regions.
40
This is compared to 27 provinces and special regions, 341 districts and municipalities 268 districts and 73 municipalities and 69,065 villages in 1999.
41
The formation of new administrative regions on the one hand puts pressure on government budgets at the national level, as national revenues need to be distributed across increasing
numbers of local administrations. It also puts pressure on local human resources and their capacity to delivery timely and quality services in each newly formed administrative unit, given
that there is some delay in building the public infrastructure and institutions necessary to deliver services, and the already small numbers of trained civil servants are spread thinly. Moreover,
in some cases the demands to form new administrative regions have also been coloured by violence, such as most recently in Tapanuli, North Sumatera.
42
On the other hand, creating new administrative regions represents an opportunity to access resources at the local level by creating more local level civil service jobs and political positions,
and in terms of raising local revenues when these new administrations introduce taxes and levies. However, often such local taxation laws are in contradiction to national level regulations and
or have created business ‘disincentives’ at the local level.
43
In some cases this has also worked against children’s access to public services such as education, since local governments have
sometimes introduced ‘user-fees’ for accessing school services or for the issuing of identiication documents, such as birth certificates.
44
In the case of issuing birth certificates, which should be provided for free, user fees at the local level have been a disincentive for the poor to gain relevant
documentation, amongst other reasons see later discussion in Section 3.5. This has wider implications for citizenship and access to government services. For example, a lack of identity
documents has been identified as one of the major reasons that children of single female-headed households do not complete basic education, with 28 per cent of such children never attending
school compared with a national average of 8 per cent. The largest proportion of children that do not complete basic education identified not having birth certificates as a reason.
45
What is important here is that, in some cases, decentralisation has not always resulted in improvements
in the way services are delivered, particularly for the poor, which has consequences for the welfare of women and children.
Despite the challenges, however, such legislative and institutional changes at the national level have been essential for beginning to create an environment in which broader human rights and
pro-child policies can be designed and implemented, including greater respect for child rights and freedom of expression for children.
46
In this context, despite the challenges, decentralisation has created opportunities at the local level to respond to the very specific idiosyncrasies of each
region in terms of child welfare. Local leaders, members of parliament, and the district executive now have the space for designing innovations relating to child rights and welfare in their regions,
and have the discretion to invest resources to create child-friendly environments at district
40 Badan Pusat Statistik BPS - Statistics Indonesia August 2010 Trends of the selected socio-economic indicators of Indonesia, August 2010
, BPS: Jakarta, available at: http:www.bps.go.id65tahunBoklet_Agustus_2010.pdf Last accessed 15 October 2010 41 Ibid.
42 Violent demonstrations took place supporting the plan to form Tapanuli Province in North Sumatera, resulting in the death of the Chair of the North Sumatera legislative assembly, Abdul Aziz Angkat. For example, see: ‘Golkar: Usut Tuntas Tewasnya Ketua DPRD Sumut’,
Mahaka Media 4 February 2009; ‘Stop Pemekaran Daerah Baru’, Kompas 6 February 2009, p2.
43 Sandee, H. 2009 ‘Small enterprises and decentralization: Some lessons from Java’, in Holtzappel, C. J. G. and Ramstedt, M. Eds., Decentralization and regional autonomy in Indonesia: Implementation and challenges, Institute of Southeast Asian Studies: Singapore,
pp206-209 44 Ray, D. 2009 ‘Decentralization, regulatory reform, and the business climate’, in: Holtzappel, C. J. G. and Ramstedt, M. Eds.,
Decentralization and regional autonomy in Indonesia: Implementation and challenges, Institute of Southeast Asian Studies: Singapore, pp150-182
45 See, PEKKA Programme for Women Headed Households and AusAID 2010 Access to justice: Empowering female heads of households in Indonesia, 2010
, PEKKA: Jakarta, pp45-48 46 See for example, Bessel, S. 2007 Children, welfare and protection
and provincial levels. Decentralisation has the potential to create ‘friendly’ competition among districts. Seeing development achievements in neighbouring regions has inspired innovation as
is discussed further in Section 4. This was not the case previously when district governments, in particular, had to rely on top-down directives.
Furthermore, Indonesia has entered into an era of participatory development and deliberative democracy. Citizens are not only involved in the election of national and local political leaders as
described above, but also in social planning for the provision of public services. The Musrenbang Consultative Development Planning Forum system described further in Section 4, which
is unique to Indonesia, involves consultative priority-setting and planning meetings with communities and key stakeholders at the village, sub-district, district, provincial and national
levels. This creates the opportunities, especially in the decentralised context, for practitioners, policymakers, community members, youth and even children, to provide continued input
into policymaking, service provision and programmes relevant to each level of government administration. In this way, civic engagement and public participation have the potential to
shape local development, and ideally to institute pro-child policies.
47
However, as Section 4 of this report demonstrates, there remains some progress to be made in ensuring the voice of
these grass-roots stakeholders - particularly women, children and practitioners - do actually make it into policymaking, and there remains a disconnect between national and local regulatory
environments, policies, budgets, strategic plans, and processes in practice. Section 4 also outlines the development planning process under decentralisation, as well as the system of budget
disbursement and other related matters.
2.2 ECONOMIC CONTEXT
2.2.1 ECONOMIC GROWTH
Sustainable, pro-poor and pro-child economic growth is essential for improving the welfare of children. However, the effects of the inancial crisis of the late 1990s have continued to be felt well
into the new millennium, and have reversed some of the more positive trends in the economic development of preceding decades, making protecting child welfare a challenging endeavour
see Section 3. To some extent, however, Indonesia has managed to lessen the effects of the crisis, particularly in relation to children, through a number of social protection programmes and
initiatives instigated to mitigate what might have been higher rates of early school leavers and poorer health service provision see Box 2.2.1 on these programmes later in this section.
48
Overall, during the three decades preceding this SITAN, Indonesia enjoyed rapid economic growth and macro-economic stability. During the 1970s, five major areas of economic reforms
contributed to economic growth and poverty reduction in Indonesia: economic stability, taxation, trade, foreign investment, and finance.
49
The results of these reforms were impressive. In 1969,
47 Darwin, M. 2009 How participation shapes local development. See also: Program PascaSarjana Politik Lokal dan Otonomi Daerah, ‘Keterlibatan publik dalam desentralisasi tata pemerintahan: Studi tentang problema, dinamika dan prospek Civil Society di Indonesia’,
Joint research report between BRIDGE, BAPPENAS, UNDP Indonesia, Gajah Mada University: Yogyakarta. These reports explain the role of civil society organisations in making policy at the local level.
48 Sumarto, S., Suryahadi, A., and Widyanti, W. 2010 ‘Design and Implementation of the Indonesian Social Safety Net Programs’, in: Hardjono, J., Akhmadi, N. and Sumarto S. Eds., Poverty and Social Protection in Indonesia, Institute of Southeast Asian Studies:
Singapore, pp111-148 49 Wardhana, A. 2009, ‘30 tahun reformasi ekonomi Indonesia: Transisi dari kebergantungan akan sumber daya menuju kemampuan
bersaing secara internasional’, in: Abimanyu, A. and Mehantara, A. Eds. Era baru kebijakan fiskal: Pemikiran, konsep, dan implementasi
, Kompas: Jakarta, p24
THE SITUATION OF CHILDREN AND WOMEN IN INDONESIA 2000-2010 26
THE SITUATION OF CHILDREN AND WOMEN IN INDONESIA 2000-2010 27
Indonesia’s annual income per capita was only approximately US70,
50
however, following rapid and sustained economic growth, averaging almost 7 per cent annually, by 1996 the per capita
income had increased more than tenfold to US1,080.
51
The agriculture sector contributed 24 per cent to gross domestic product GDP while non-oil industries contributed 20 per cent of GDP.
52
Absolute poverty reduced sharply, from 40 per cent of the population in 1976 to 11 per cent in 1996.
53
The government also instituted a family planning programme that successfully reduced population growth to an average of 2 per cent annually, which was translated into average
per capita income growth of almost 5 per cent annually. Other countries in the region were experiencing similar growth, which was collectively considered to be a part of the ‘East Asian
Miracle’.
54
During the 1980s, however, Indonesia faced a series of problems. The falling oil prices in 1982 reduced export earnings and budget revenues. At the peak of the oil boom years,
80 per cent of Indonesia’s export earnings and 70 per cent of budget revenues came from oil. Consequently, the large decline in oil prices severely affected Indonesia’s balance of payments.
55
Between 1983 and 1995, the government introduced some twenty-four packages of economic reforms aimed at increasing economic efficiency and encouraging investment as well as non-oil
exports.
56
However, with the onset of the multiple crises in 1997, poverty levels rose sharply as Indonesia entered a period of economic shock, instability and negative growth.
In the period following the SITAN 2000, Indonesia has gradually recovered from the economic crisis. Figure 2.2.1 shows the changes in GDP growth rates with and without oil and gas
contributions over the past decade. While the country experienced negative growth in 1998, in the period between 2001 and 2004 this situation reversed, whereby growth without the
contribution of oil and gas revenues steadily increased from 3.83 per cent to 5.03 per cent according to data from Badan Pusat Statistik BPS - Statistics Indonesia see Figure 2.2.1.
By 2008, growth was at approximately 6 per cent, slightly down from the previous year, and approximately 6.5 per cent if oil and gas revenues are included. Growth estimates used in the
National Medium-Term Development Plan RPJMN, Rencana Pembangunan Jangka Menengah Nasional indicate that in 2009, growth had decreased somewhat to only 4.3 per cent as a result of
the global financial crisis, which began in October 2008.
57
The positive changes in Indonesia’s economy are also evident in the improving trends in GDP per capita at current market prices, which has increased steadily to IDR 21.7 million in 2008 from IDR
12.6 million in 2005 see Figure 2.2.2 below. Annual income per capita, at constant market prices in Indonesia, has also increased steadily over the last decade to IDR 9,111,100 approximately
US942 in 2008, from IDR 7,655,535 approximately US890 in 2004, despite the recent decline in economic growth. Indonesia is also now part of G20.
50 Hill, H. 1996 Transformasi ekonomi Indonesia sejak 1966: Sebuah studi kritis dan komprehensif.: PT. Tiara Wacana: Yogyakarta, pp23- 24. See also, Shahrir 1992 Refleksi pembangunan ekonomi Indonesia 1968-1992
. PT Gramedia: Jakarta 51 Ibid.
52 Ibid. 53 Ibid.
54 In 1993, the World Bank published the book entitled ‘The East Asian Miracle’. Between 1970-1996 before the 1997 inancial crisis six countries in Southeast Asia showed remarkable GDP growth: Korea 835 per cent, Singapore 690 per cent, Thailand 689 per cent,
Malaysia 582 per cent, Hong Kong 560 per cent, Indonesia 432 per cent. Source: Rasyid, A. 2010 State ownership in banks after the crisis: A new paradigm
, PowerPoint presentation, presented for Financial and Private Sector Development Forum 2010, World Bank Headquarters: Washington, D.C., 2-3 March, p2.
55 Saidi, Z. 1998 Soeharto menjaring matahari: Tarik-ulur reformasi ekonomi orde baru pasca 1980, Mizan: Jakarta, pp90-91 56 Hill, H. 1996 Transformasi ekonomi Indonesia sejak 1966, p25
57 Government of Indonesia 2010 Rencana Pembangunan Jangka Menengah Nasional RPJMN 2010-2014, Government of Indonesia: Jakarta, p14
Figure 2.2.1: Gross domestic product GDP growth rates, with and without oil and gas per cent, Indonesia 1996-2008
Source: Badan Pusat Statistik BPS - Statistics Indonesia, 1996-2009 Notes: Preliminary figure; Very preliminary figure; 1996-2000, at 1993 Constant Market Prices; 2001-2008, at
2000 Constant Market Prices.
Figure 2.2.2: Gross domestic product GDP per capita, at constant and current market prices million IDR, Indonesia 1999-2008
Source: BPS - Statistics Indonesia, Strategic Data, 2009
With such economic achievements, from its previous status as a low income country, Indonesia has now been reclassified as a lower-middle income country, being ranked at 114 out of the 210
countries given economic rankings by the World Bank. Using the Atlas method, gross national income in Indonesia was at USD1,880 per capita in 2008. In Southeast Asia, Indonesia is now
ranked seventh among 10 countries that have adequate economic data available data on Myanmar is unavailable. See the Table 2.2.1.
Million Rp
1999 2000
2001 At Constant Market Prices
At Current Market Prices 2002
2003 2004
2005 2006
2007 2008
25,000,000.0 20,000,000.0
15,000,000.0 10,000,000.0
5,000,000.0 0.0
1,870,288. 6
5,421,910. 9
6,145,065. 4
8,080,533. 3
8,828,049. 9
9,429,500. 8
10,610,080. 5
12,675,544. 5
17,502,600. 14,991,100.
6,933,594. 5
7,922,887. 9
7,135,899. 7
7,385,472. 3
7,655,534. 5
7,999,382. 6
8,292,500. 8,700,000.
9,111,100. 21,678,400.
7.82 8.16
4.70 5.23
-13.13 -14.22
0.79 1.00
4.92 5.31
3.83 5.11
4.78 5.69
5.03 5.97
5.69 6.57
5.50 6.11
6.28 6.87
6.06 6.52
5.23 4.50
Per cent
10.000
1996 1997
1999 2000
2001 2002
2003 2004
2005 2006
2007 2008
5.00 0.00
5.00 -10.00
-15.00
GDP GDP Without Oil and gas
THE SITUATION OF CHILDREN AND WOMEN IN INDONESIA 2000-2010 28
THE SITUATION OF CHILDREN AND WOMEN IN INDONESIA 2000-2010 29
Table 2.2.1: Gross national income per capita 2008, ATLAS method and purchasing power parity PPP of Southeast Asian countries
Source: World Development Indicators Data Base, World Bank, 2010, and the World Bank List of Economies, 2010
2.2.2 POVERTY ALLEVIATION AND POVERTY REDUCTION PROGRAMMES: CHANGING STRATEGIES
Some argue that while the development strategies which began to be introduced through the Five Year Development Plans Repelita, Rencana Pembangunan Lima Tahun in the late 1960s and
throughout the 1970s under the New Order Suharto government focused on economic growth, inflation control, creating an investment climate, and other efforts for political and economic
stability see the discussion above, there were few initiatives which focussed directly on poverty reduction.
58
Over time, however, the focus on poverty alleviation in national development efforts has grown and changed form. With the irst Five Year Development Plan Repelita I, 1969-1974,
some initiatives were introduced to improve services for poor families such as the Poor Family Welfare Services Program Program Pelayanan Kesejahteraan Keluarga Miskin, a programme
that continued in various forms over the next two decades.
59
The initial Five Year Development Plans used a basic needs approach to poverty reduction,
60
in which the poverty line was established at a minimum of 2100 calories intake per capita per day.
Poverty reduction efforts intensified with Repelita IV 1985-1989 and began to be characterised by multi-sectoral approaches aimed at reducing inter-regional inequity through the special targeting
of particular disadvantaged regions and provinces. Examples include USAID sponsored Provincial Development Project, CIDA sponsored Sulawesi Regional Development Project, and World Bank
sponsored Yogyakarta Rural Development Project.
61
One of the more renowned redistributive
58 Shahrir 1986 Ekonomi politik kebutuhan pokok: Sebuah tinjauan prospektif, LP3ES GIVE FULL NAME: Jakarta, pxxi; Dewey, A., Dove, M. R., Retnandari, N. D., Sutrisno, L. 1993 Suatu tinjauan mengenai usaha-usaha pemberantasan kemiskinan di Indonesia 1968-1993:
Realita mikro dan konteks makro unpublished draft
59 Shahrir 1986, ‘Political economy of basic needs’, p93. This programme became the Family Welfare Support Program Bimbingan Kesejahteraan Keluarga in the Second Five Year Development Plan Repelita II, 1975-1979. As the programme grew, under the Third
Five Year Development Plan Repelita III, 1980-1984 it became The Development of Family Welfare Pengembangan Kesejahteraan Keluarga. In Repelita IV 1985-1989 and V 1990-1994, the name of the programme was changed to Donation and Alleviation of
Poor People Penyantunan dan Pengentasan Fakir Miskin. Dewey et al. 1993 Suatu tinjauan mengenai usaha-usaha pemberantasan kemiskinan di Indonesia 1968-1993
, pp29-30 60 The five main basic needs for people to survive and live in dignity were defined as food, health, water and sanitation, education and
shelter. 61 These programmes were later merged into the Regional Integrated Development Program PPWT, Program Pengembangan Wilayah
Terpadu, which was designed to minimize the weaknesses of sectoral programming. Other programmes have focused on the urban poor, such as the City Integrated Infrastructure Development Program Program Pembangunan Infrastruktur Perkotaan.
Country
Upper-middle income US3,856-11,905 Singapore
Brunei Darussalam Malaysia
Lower-middle income US976-3,855 Thailand
Timor-Leste Philippines
Indonesia Low Income US975 or less
Vietnam Lao PDR
Cambodia
GNI per capita, Atlas method US
34,050 27,050
7,250 3,670
2,460 1,880
890 760
640
Purchasing power parity International dollar
50,800 47,970
13,740 7,770
4,690 3,900
3,600
2,700 2,050
1,870
development initiatives of the later Suharto period was the Left-Behind Villages Program Program Inpres Desa Tertinggal, IDT, which was implemented through a Presidential Instruction
Inpres, Instruksi Presiden beginning in 1994 along with other Presidential Instructions, such as road building in rural areas.
The IDT programme also used a regional targeting and multi-sectoral approach to lift the standard of living in some of Indonesia’s more isolated villages. Since 2000, the targeting principles of
redistribution and intensified interventions in particular regions have continued to be employed in development efforts in Indonesia, through both the continuation of previous programmes in
the earlier part of the last decade and through new programmes implemented by the Directorate for Disadvantaged Regions at The National Development Planning Agency BAPPENAS, Badan
Perencanaan Pembangunan Nasional. This includes development and rehabilitation programmes in conflict-affected areas such as the Support for Poor and Disadvantaged Areas Project P2DTK,
Percepatan Pembangunan Daerah Tertinggal dan Khusus. Targeting disadvantaged regions has also been mainstreamed through the creation of the Ministry for the Development of
Disadvantaged Regions in 2004.
Aside from targeting particular regions, poverty reduction efforts began to include the principles of empowerment and improving human capabilities skills building in the final days of the
New Order, representing a significant departure from the basic needs approach. Such efforts have continued since the last SITAN 2000 was conducted, and have contributed to mitigating
the effects of the financial crisis, which triggered spiralling poverty levels. For example, the Kecamatan sub-district Development Program PPK, Program Pengembangan Kecamatan
was designed to address the self-defined needs and priorities of poorer groups and women in the country. With technical assistance from the World Bank, the Government of Indonesia GoI
began implementing the programme in many sub-districts throughout Indonesia in 1998. The PPK proved popular both with the government and in rural Indonesia and was scaled up to combat
the effects of the financial crisis. The programme has continued through several iterations over the last decade, becoming the largest community-driven development programme in the world.
62
In April 2007, the GoI launched a revised version of the programme,
63
the National Program for Community Empowerment - ‘Mandiri’
64
PNPM Mandiri, which, drawing on the national development budget, is now the cornerstone of the national development strategy.
Poverty reduction strategies in Indonesia, particularly in the second half of the past decade, have extended empowerment and human capabilities approaches to also focus on United Nations-
supported rights based approaches to development. The National Strategy on Poverty Reduction SNPK, Strategi Nasional Penanggulangan Kemiskinan, which was officially released by the
Coordinating Minister for People’s Welfare Kementerian Koordinator Bidang Kesejahteraan Rakyat in 2005, made poverty reduction and reducing inequality the top priority in the national
development strategy. The National Strategy prioritises both the rights of the poor and the obligations of the state to respect, protect, facilitate, and fulfil people’s rights in terms of welfare.
It aims to: 1 create entrepreneurial opportunities for the poor; 2 strengthen community institutions to improve access to information for the poor and enable them to participate in
formal decision-making processes through, for example, the musrenbang system mentioned above; 3 incorporate capacity building, through investment in health, education and training;
62 Barron, P., Diprose, R. and Woolcock, M. 2006; 2011 Contesting development: Participatory programmes and local conflict in Indonesia, Yale University Press: Ithaca
63 PNPM Mandiri, often known as just PNPM, combines many of the mechanisms and principles of the preceding Urban Poor Reduction Program P2KP, Program Penanggulangan Kemiskinan di Perkotaan, and the Kecamatan Development Program PPK, Program
Pengembangan Kecamatan. 64 Mandiri in Indonesian means to stand alone or be independent
