Country paper inclusive growth in indonesia by habe at hyderabad 2014

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RURAL TECHNOLOGIES FOR INCLUSIVE GROWTH HARIS BUDIYONO (Center for Research on Autonomy and Regional Develovement, Faculty of Agribusiness, Islamic 45University) WAWAN MUNAWAR KHOLID (Ministry of Home Affairs, Republic of Indonesia) Center for Research on Autonomy and Regional Develovement Faculty of Agribusiness, Islamic “45” University Ministry of Home Affairs, Republic of Indonesia Country Paper - INDONESIA Collaborative International Training Programme on Rural Technologies for Inclusive Growth” Centre on Integrated Rural Development For Asia and The Pasific (CIRDAP)-National Institute of Rural Development (NIRD) Hyderabad, India, February 18-27, 2014

Transcript of Country paper inclusive growth in indonesia by habe at hyderabad 2014

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RURAL TECHNOLOGIES FOR INCLUSIVE GROWTH

H A R I S B U D I Y O N O (Center for Research on Autonomy and Regional Develovement,

Faculty of Agribusiness, Islamic “45” University)

WAW A N M U N AW A R K H O L I D (Ministry of Home Affairs, Republic of Indonesia)

Center for Research on

Autonomy

and Regional Develovement

Faculty of Agribusiness,

Islamic “45” University Ministry of Home

Affairs,

Republic of Indonesia

C o u n t r y P a p e r - I N D O N E S I A

“Collaborative International Training Programme on Rural Technologies for Inclusive Growth”

Centre on Integrated Rural Development For Asia and The Pasific (CIRDAP)-National Institute of Rural Development (NIRD)

Hyderabad, India, February 18-27, 2014

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A B R I E F P R O F I L E O F I N D O N E S I A

A Brief Profile of Indonesia

A Brief Profile of Indonesia

C H A P T E R 1 .

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MAP OF INDONESIA

A Brief Profile of Indonesia

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According to the 2010 official

population cencus data, BPS-

Statistics Indonesia

(http://www.bps.go.id) :

• the population of Indonesia

totalled 237,641,326;

• those residing in urban areas were

118,320,256 (49.79 %) and

• in rural areas were 119,321,070

(50.21 %).

POPULATION

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• Far from being small, Indonesia

is in fact a vast archipelago that

comprises 17,508 Islands,

which go to form a land mass

equating to 1,910,931.32

square km

(http://indonesiadata.co.id).

• This means that Indonesia is

the 19th largest country in

terms of land mass and it has a

high population density, too.

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INDONESIAN TERRITORY

Indonesia located in Southeastern Asia,

archipelago between

the Indian Ocean and the Pacific Ocean

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• In recent years, the country has

embarked on a program of family

planning awareness but that has

done little to slow down a

considerable population growth, the

number of population is projected to

reach around 254 million by 2020

and 288 million by 2050.

• The population of Indonesia in 2013

is already estimated at 250,585,668

with no signs of slowing, and this

represents a very sizable increase

from the official 2010 figures

(http://worldpopulationreview.com).

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• Indonesia has transformed itself since

1998 into a relatively open, stable, and

democratic nation, underpinned by a

process of decentralisation as the

centrepiece of a wide-ranging programme of

institutional reforms

(http://www.developmentprogress.org).

• The political stability in Indonesia has

created a window of opportunity to improve

good governance in the country. Changes

within the Indonesian government and

changing relationships between the

government, civil society, and the private

sector are opening up new spaces for

negotiation.

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POLITICAL STABILITY

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• Cultural diversity of Indonesia it is a unique

and multicultural countries in the world.

Culture in each region developed along the

cultural diversity of the place or the other

tribes.

• Bhinneka Tunggal Ika is the official national

motto of Indonesia. The phrase is Old

Javanese translated as "Unity in

Diversity“. It is inscribed in the Indonesian

national symbol, Garuda Pancasila and it is

officially mentioned in article 36A of the

Constitution of Indonesia 1945.

CULTURAL DIVERSITY

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• Traditional Indonesian music represents some sort of

uniqueness, mainly because of the varied instruments

used for the purpose. While performing an orchestra, as

many as 40 different musical instruments are played,

one of them is called Angklung.

• The angklung is commonly regarded as the most

popular and one of the oldest of Indonesian instruments.

In 2010, it was certified as intangible heritage by

UNESCO. It's one of the most intriguing wood

instruments, which relies on sustained resonance on

individual tubes that have their own unique resonant

frequency. The tubes are mounted on two larger bamboo

tubes.

• The instrument was created centuries ago by the

Sundanese people. The instrument, like all Indonesian

instruments, is always played as a part of a larger

arrangement.

TRADITIONAL INDONESIAN MUSIC

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• Administratively, Indonesia consists of 33

provinces (five of which have special status),

399 regencies, 98 cities, 6.793 districts, and

79.075 villages. The provinces of Aceh, Jakarta,

Yogyakarta, Papua, and West Papua have

greater legislative privileges and a higher

degree of autonomy from the central

government than the other provinces. Each

province has its own legislature and governor.

• The provinces are subdivided into regencies

(kabupaten) and cities (kota), which are further

subdivided into districts (kecamatan), and

again into village groupings (either desa or

kelurahan).

NATIONAL ADMINISTRATION

C i t y L i v e l i h o o d

R u r a l L i v e l i h o o d

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• Following the implementation of regional

autonomy measures in 2001, the regencies and

cities have become the key administrative

units, responsible for providing most

government services.

• The village administration level is the most

influential on a citizen's daily life and handles

matters of a village or neighborhood through

a lurah or an elected kepala desa (village chief).

• Furthermore, a village is divided into several

citizen groups (Rukun-Warga (RW)) which are

further divided into neighbourhood groups

(Rukun-Tetangga (RT)).

NATIONAL ADMINISTRATION (Continued)

The Best Village in Bali

A Citizen Group in

TanjungPinang

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• The Gross domestic product (GDP) was

about 1.209 trillion US$ and the debt ratio to

the GDP was 26%. GDP per capita - current

prices is US$ 3,797 (2011 estimate). The

manufacturing sector was the economy's

largest portion and accounts for 46.4% of

GDP (2010), this was followed by services

(37.1%) and agriculture (16.5%) http://www.gfmag.com.

• However, since 2010, the service sector has

employed more people than other sectors,

accounting for 48.9% of the total labor force,

this was followed by agriculture (38.3%) and

industry (12.8%). Agriculture, however, had

been the country's largest employer for

centuries.

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NATIONAL ECONOMY

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• Indonesia is in the 128th position, close to India

which is in the 132nd position among the world’s business centers, according to the International Finance Corporation and the World Bank.

• Indonesia has significantly improved in the areas of startup time of a business, the procedures involved in setting up a business, and the construction permits from the previous years.

• Indonesia is also gearing up for a free-trade era, the ASEAN Economic Community (AEC), beginning in 2015. In every aspect, Indonesia appears to be an emerging business hub in the region.

• The projected Gross Domestic Product (GDP) rate of Indonesia in 2013 is 6.4 per cent http://www.travelandflavors.com.

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NATIONAL ECONOMY (Continued)

T a n j u n g P r i o k P o r t , J a k a r t a

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TOTAL BALANCE OF TRADE OF INDONESIA

Period : 2008-2013 (Value : Million US$)

Source: BPS, Processed by Trade Data and Information Center, Ministry of Trade

*) temporary data

NATIONAL ECONOMY (Continued)

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• Since the 1970’s Indonesia has been

recording trade surpluses due to exports growth. However, in 2012, the country posted trade deficit, as exports fell due to a slowdown in the global economy and surge in imports.

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NATIONAL ECONOMY (Continued)

INDONESIA ECONOMY'S TOTAL EXPORTS AND IMPORTS 2012

EXPORTS (VALUE : MILLION US$) IMPORTS (VALUE : MILLION US$)

190,031.83 191,681.00

By main commodity group (ITS) % By main commodity group (ITS) %

Agricultural products 23.9 Agricultural products 11.0

Fuels and mining products 39.9 Fuels and mining

products 25.7

Manufactures 35.9 Manufactures 62.8

By main destination % By main origin %

1. Japan 15.9 1. China 15.3

2. China 11.4 2. Singapore 13.6

3. European Union (27) 9.5 3. Japan 11.9

4. Singapore 9.0 4. European Union (27) 7.4

5. Korea, Republic of 7.9 5. Malaysia 6.4

http://stat.wto.org

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I N C L U S I V E G R O W T H I N I N D O N E S I A

A Brief Profile of Indonesia

C H A P T E R 2 .

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• Inclusive Development in Indonesia emphasizes on 4 (four) aspects :

Infrastructure development: ensures national connectivity and helps less developed regions

catch up with more-developed regions particularly on the Java island;

Universal education and access to health: addresses people’s basic needs;

Poverty reduction programs: pro poor programs include the provision of subsidized rice,

cash transfers, and community development programs; and

Microfinance schemes: help small and medium companies to access credit.

(Mari Elka Pangestu, 2011)

• However Elena Ianchovichina and Susanna Lundstrom (2009) mentioned that IG should focuses

on economic growth which is a necessary and crucial condition for poverty reduction. It should

also be inclusive of the large part of the country‟s labor force, where inclusiveness refers to

equality of opportunity in terms of access to markets, resources, and unbiased regulatory

environment for businesses and individuals.

• Inclusive growth refers both to the pace and pattern of growth, which are considered interlinked,

and therefore in need to be addressed together. The idea that both the pace and pattern of growth

are critical for achieving a high, sustainable growth record, as well as poverty reduction.

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Inclusive Growth in Indonesia

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• Indonesia's National Long-Term Development Plan 2005-2025 sets out the country's key aims in terms of

poverty reduction and development:

– Achieving equitable development that gives greater attention to those who are disadvantaged, including poor communities in

remote or disaster-prone areas;

– Increasing national food security and self-reliance based on local diversified food resources;

– Developing rural areas through the promotion of agricultural production and agro-industry, by building capacity, developing infrastructure, and enhancing access to information, markets and financial services.

• The Government of Indonesia has also articulated a National Medium-Term Development Plan (RPJMN) for 2010-2014 with the declared aim of building a nation that is more advanced and prosperous, self-reliant, secure and peaceful, democratic, and just.' The RPJMN has 11 national priorities:

– Governance reform;

– Education;

– Health;

– Poverty alleviation;

– Food security;

– Infrastructure;

– Investment climate;

– Energy;

– Environment and disaster management;

– Outer islands and conflict areas;

– Culture, creativity and technological innovations.

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P O L I C Y

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• The 2010-2014 National Medium-Term Priority Framework for Agriculture focuses on the revitalization of the agricultural sector and gaining competitive advantages within the national and global economies.

• It is underpinned by a strong national land policy framework, a commitment to environmental protection, and the sustainable use of natural resources.

• Priority strategies include:

– Ensuring food security and nutritious diets, farmer income, and

consumer safety;

– Developing sustainable agriculture regarding climate change;

– Creating more employment opportunities.

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No. Sector Program

1. Energy Renewable Energy and Energy Conservation Development

2. Electricity Rural and Urban Electricity Development

3. Post,

Telecommunication,

and Information

Technology

Enhancement, Equality, and Development of Post, Telecommunication, and

Information Infrastructure

4. Roads, and Land

Transportation

Road and Land Transportation Services Development and Improvement

5. Sea Transportation Sea Transportation Services Development and Improvement

6. Air Transportation Air Transportation Services Development and Improvement

7. Railways Railways Transportation Services Development and Improvement

8. Water Resources

Water Resources Conservation

Water Resources Utilization

Water Resources Damage Control

9. Housing and

Settlement

• Housing Development : Provision of owned and rented residential.

• Sanitation and Drinking Water Development : Drinking water provision, Waste

Water Management System.

• Settlement rural/urban quality enhancement.

INDONESIA Infrastructure Program Priority in 2010 - 2014 I N F R AS T U C T U R E

Source : Ministry of National Development Planning/National Development Planning Agency (Bappenas). 2011. Infrastructure Development Strategy

In Indonesia. Seminar Presentation Material. Jakarta, 13 January 2011

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• In 2003, as a part of the decentralisation process, the Education Law (No. 20, 2003),

set out four major directions:

– basic education should be free of all charges;

– schools should be given the authority to manage their own programmes;

– community participation in education should be encouraged; and

– the financing of education should be based on the number of students rather

than on the number of schools.

• In 2005, the government implemented the School Operational Assistance Programme

(BOS) in order to increase enrolment rates. This generally successful scheme has

helped reduce school costs, so easing the burden on Indonesian households,

particularly disadvantaged rural ones.

• Moreover, as part of the 2010-14 Medium-Term Development Plan (RPJN)

additional support from the regional government budget (APBD) has extended

free education to more and more regions.

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E D U C AT I O N

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• In 2007 – and again as part of RPJN – the government started a conditional cash

transfer scheme, the Family Hope Programme (PKH), to encourage poor

households to send their children to school. The PKH was designed specifically

to increase enrolment rates by making the nine-year duration of compulsory basic

education a reality.

• In the same year, the government launched another conditional cash transfer

programme for rural communities, the PNPM “Generasi Sehat dan Cerdas”. Under

the terms of the programme, community funds (BLM) are allotted to villages, with the

amount depending on the number of beneficiaries in a village – namely, pregnant

women and children under 5 years old or of primary school and junior high

school age. How the funds are used is decided by agreement among the villagers,

but they must be spent on improving the provision and use of maternal and child

health care and basic education services.

• The 2010-2014 Medium-Term Development Plan also has provision for school

infrastructure. Central government has assisted the regional authorities in

rehabilitating school buildings built in the 1970s and 1980s and further

increasing the total number of classrooms and new schools.

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• A further measure – the open junior high school system – addresses the lack of

school infrastructure and the needs of students who either live in remote locations or

simply cannot attend school regularly for economic reasons.

• Children in poor areas tend to drop out and start working once they have gained

basic literacy and numeracy skills, because their parents, who mostly work informally,

see their children as workers and place no value in further education.

• The open junior high school system was created to provide a teaching and

learning schedule that is as flexible as possible. Tutors assist in the “learning

process” in their neighborhoods, while students meet every now and then to discuss

what they learned and eventually take exams in a “learning place” that may be further

away from where they live. No tuition fees are charged in open junior high schools

and, although the general curriculum is similar to that of their peers in regular junior

high schools, there is more emphasis on life skills as most students do not

continue formal education afterwards.

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Source : Southeast Asian Economic Outlook 2013: With Perspectives on China and India. OECD, 2013.

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• Indonesia does not spend enough on health care. Although government health expenditure has

increased in recent years, total health expenditure has remained under 3% of GDP (2000-2010).

• Since Indonesia began its decentralisation process in 2001, local authorities have had the

power to manage public health-care facilities and medical personnel by setting fees and user

charges for public health services and allocating the transfers received from central government to

finance provision. However, control over medical personnel‟s employment and pay conditions

and over the health insurance scheme for the poor has remained in the hands of the central

government.

• In 2004, the National Social Security System (SJSN) Law provided a blueprint for the future

shape of the social security system and envisaged a comprehensive system of social

protection with universal coverage. In addition to health insurance, the framework included

pensions, old-age savings, workers‟ compensation, and death benefits – all financed by

workers’ contributions, with the exception of provisions for the poor, which are funded by the state.

As for informal workers’ contributions, the SJSN Law states that nominal amounts instead of a

percentage of wages should be collected.

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H E ALT H

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• With respect to implementation, it specifies that the health-care programme should be put in

place first. The sustainability of the future system was also taken into account, as the law stated

explicitly that the programmes had to be affordable for the state budget.

• In 2011, in a major step towards the actual implementation of the National Social Security System

Law, a regulation spelled out the status of the BPJS, BPJS Health and BPJS Employment

administering health as well as work accident, old-age, pension and death related programmes.

• The BPJS are to be managed as trust funds on a non-profit, compulsory-participation basis and

are to be externally monitored by the DJSN. When the BPJS‟s health programme becomes

operational on 1 January 2014, current health insurance schemes will be dissolved and

managed by the new administrative body, BPJS Health.

• While public spending on health care needs to be increased, the medium- and longterm fiscal

sustainability of the reformed health-care system also deserves consideration. Another challenge,

in addition to the objective of universal coverage, is that the ageing of Indonesian society will

further increase the strain on the system in the long term.

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Source : Southeast Asian Economic Outlook 2013: With Perspectives on China and India. OECD, 2013.

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• Poverty Reduction at Heart of Government's Agenda. According to government figures,

14.15% of Indonesians (32.5 million) live below the national poverty line. Ever since the Asian

economic crisis in 1997/98, poverty reduction has been at the heart of government’s policy

agenda, which has seen various programs to protect the poor through the provision of rice,

health, and education and the empowerment of communities and business. This multi-

faceted approach to poverty reduction has been evident over the last two decades, and progress

has been marked. However, much work is still required if Indonesia is to achieve a poverty level of

8%-10% by 2014, as laid down in Millennium Development Goal.

• National Team for Accelerating Poverty Reduction. The latest government initiative recognises

that fighting poverty is not just dependent on the central government’s efforts, but also those of

local government, parliament, the private sector, civil society, academics, and international

agencies. The cross-community effort is harmonised under Presidential Regulation 15/2010,

which is headed by the Vice President. This new regulation seeks to:

– Create the poverty-reduction policy and programme;

– Make the poverty reduction activities more synergic between ministries and institutions;

– Monitor and evaluate progress.

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POVERTY REDUCTION PROGRAMS

Asep Suharyadi, Athia Yumna, Umbu Reku Raya, Deswanto Marbun. 2010.

Review of Government’s Poverty Reduction Strategies, Policies, and Programs in Indonesia. Supported Research by ADB.

The SMERU Institute, Jakarta, 2010.

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Current Strategy. The current government strategy for poverty reduction is delivered

by dividing the target audience into three clusters:

Figure 1. Three Clusters as The Target for Poverty Reduction Programme

http://www.cpr-indonesia.com

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• After crisis, in 2003 government established the financial consultant for micro-scale, small, and medium-

entreprises„ bank partner. The consultant provides service to connect micro-scale, small, and medium-entreprises

with the bank so that loan can be quickly absorbed by the enterprises based on their credit business plans. Soon

after that, the government launched the scheme of microcredit without substitute collateral.

• There were also a number of microcredit programs under coordination of various ministries, such as:

– KUBE (Kelompok Usaha Bersama/Program Pemberdayaan Rakyat Miskin), Ministry of Sosial Affairs;

– PEMP (Program Pemberdayaan Ekonomi Masyarakat Pesisir), Ministry of Marine Affairs and Fisheries;

– P4NK (Proyek Peningkatan Pendapatan Petani dan Nelayan Kecil), Ministry of Agriculture;

– BLM-KIP (Bantuan Langsung Masyarakat-Keringanan Investasi Pertanian), Ministry of Agriculture;

– Revolving Fund for Smallholders with Profit Sharing or Syariah as well as conventional mechanisms, Ministry

of Cooperatives and SME’s.

• Other policy also has been taken includes the creation of a conducive business climate, creation of

employment, improving business capacity, improving the entrepreneurship, as well as make a grater access

to productive resources.

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MICROFINANCE SCHEMES

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• Regarding to support poverty reduction program , in the late 2007, government launched a

program called “Credit for The People” (KUR). This followed by MOU between

Government (represented by several ministries), Assurance Institutions (PT Askrindo

and PT Jamkrindo), and several banking (BRI, BANK MANDIRI, BTN, BUKOPIN, BSM).

• The government provides a subsidized guarantee scheme at amount 70 % in which

the government pays the premium.

• The target of this microcredit programs is the micro-entreprises and cooperatives which

have feasible business but they are not bankable because of lack of collateral.

• However, the government tend to focus more on directing resources toward reaching the

poor as many as possible but then not give enough attention on allocating resources in

the design and implementation of effective monitoring and evaluation.

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Suharyadi, A., Yumna, A. Raya, U.R., and Marbun D.. 2010.

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POLICY RELATED TO NATIONAL INNOVATION SYSTEM AND

RURAL TECHNOLOGIES IN INDONESIA

A Brief Profile of Indonesia

C H A P T E R 3 .

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At the national level in

Indonesia, there is a

framework of an

innovation policy which

was illustrated in Figure

2. :

Figure 2. An Innovation Policy Framework

Policy Related to National Innovation System and Rural Technologies in Indonesia

Source : Taufik, T.A. (2007)

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While a set of policies

for managing The

National Innovation

System (NIS) was

illustrated in Figure 3. :

Figure 3. Legal Framework and Strategic Environments in NRA Formulation

Source : Taufik, T.A. (2007)

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Source : Taufik, T.A. (2007)

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Organizational structure

for managing The

National Innovation

System (NIS) was

illustrated in Figure 4. :

Figure 4. Organizational Setting for Managing The National Innovation System (NIS)

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Meanwhile, the policy that support directly to implement the appropriate

technology was based on the Presidential Decree No. 3, 2001 : The

Application and Development of Appropriate Technology. Presidential

Decree directs the Governors for facilitate, coordinate, cooperate,

evaluate, and reporting of those programmes on the application of

appropriate technology.

Presidential Decree also directs those Regents/Mayors to implement,

strengthen institutional capabilities, collaborate with other agencies, and

monitoring and evaluation on the application of appropriate technology

development at each local area.

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R U R A L T E C H N O L O G I E S W H I C H A R E A D O P T E D

B Y T H E R U R A L P E O P L E F O R T H E I R L I V E L I H O O D

A Brief Profile of Indonesia

C H A P T E R 4 .

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THE MINISTRY OF HOME AFFAIRS

The Ministry of Home Affairs has formed 118 Posyanteks (the service center for implementing rural/urban

appropriate technology), in 28 Provinces along the year of 2010-2013. Here some appropriate technologies that

have been introduced by Posyanteks :

• Improvement technology for agricultural activities;

• Food processing technology;

• Waste management technology; and

• Productivity improvement for micro and small business.

Cassava Processing Batik Processing Harvesting Machine

Coconut Processing Milk Treatment Food Processing

Figure 5. Some Appropriate Technologies Introduced by Posyanteks

Rural Technologies which are adopted by the rural people for their livelihood

Source : Ministry of Home Affairs (2013)

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CENTRE FOR APPROPRIATE TECHNOLOGY DEVELOPMENT (B2PTTG),

INDONESIAN INSTITUTE OF SCIENCE (LIPI)

Location Rural farm community in

ALOR (East Nusa Tenggara)

Horticulture farm

community in

SELENGEN (West

Lombok)

SUBANG (West

Java)

Agro forestry

community in

TANETE (South

Sulawesi)

Type of

Innovation

New cultivation technology and

new plants : sweet corn and

string bean cultivation at shore.

New cultivation

technology.

Modification of

existing

technology on fish

farming.

Utilization of electricity

from micro

hydropower

generator.

New technology for local

commodity based-food

processing, mainly fish

processing.

New technology for local

commodity based-food

processing.

New technology for

local commodity

based-food

processing.

New technology to

support food

processing business.

Source : Prasetyo, Apriliyadi, Hidajat, and Novianti (2009).

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INDEPENDENT INNOVATIVE-VILLAGE

Independent Innovative-Village or in Indonesian called DESA INOVASI MANDIRI

(DIM) is one of NGO’s in Indonesia, located in Bandung, West Java, was

founded by Adjie Wicaksana. They build a community independent from all of

its aspects including : education, health, environment, and especially

economy. Grand Design for 3-years development of the Desa Inovasi Mandiri

is to achieve :

• Economic independency and local commodity excellence through the

application of technology;

• Standard of excellence in public education;

• Eco-village and zero waste technology;

• Energy independence based on local resources (Green Energy);

• Green and Healthy Living as well as centers of herbal plants; and

• Eco-Tourism.

https://www.changemakers.com/project/independent-innovative-village

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DIAN DESA

Yayasan Dian Desa (YDD), or in English “light of the village

foundation”, is a non-governmental organization (NGO), was

founded in 1972, with a special focus on the development of

appropriate technology, at that time YDD’s activities were limited

to clean water supply and sanitation only.

Its operating locations were also limited e.g. in Yogyakarta and

Central Java Province only. Slowly, Yayasan Dian Desa has

grown, and at the present time employs approximately 300

people from various disciplines. The location of its activities has

also expanded.

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Besides operating in Indonesia, YDD is now actively working

elsewhere in the Southeast Asia region, covers the following sectors:

• Water & Sanitation;

• Renewable Energy;

• Agriculture & Aquaculture;

• Small Industry;

• Waste Treatment;

• Water Treatment; and

• Microfinance.

Figure 6. Water Lifting System with

Hydraulic Ram Method Introduced

by Dian Desa

Yayasan Dian Desa can only help

communities who are willing to help

themselves. Therefore, in all water &

sanitation programs target communities

should contribute in whatever possible,

including providing local materials, labor and

possible financial inputs. This has become the

essence of partnership and foundation of

sense of ownership

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YAYASAN BINA USAHA LINGKUNGAN

YAYASAN BINA USAHA LINGKUNGAN is a non profit organization in Jakarta,

established in 1993. YBUL promotes community-based renewable energy development

through collaborations and innovative solutions. YBUL is experienced and specialized in

promoting and implementing programs ini : Rural Electrification, Community

Empowerment, Environmental Financing Mechanism, Clean Development

Mechanism, and Green Energy Development.

YBUL installed 3 (three) small hydro turbine generator systems under the

sponsorship of USAID in the years 2001- 2002. Two of them were installed at PT

CAKRA, a tea plantation company located in the hills of CIWIDE, south of the city of

Bandung, West Java, Indonesia with a capacity of 120 kW each, and one turbine

generator at the village Garung, south of the town Garut, also in West Java, with a

capacity of 15 kW. While the first two are operated and maintained by a company to

replace the use of diesel oil for electricity generation, the third system was for community

power.

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The two turbine generator systems at PT.CAKRA were built at a cost of US$ 400,000 and

they saved the company IDR 1,800,000,000 (2006) millions per annum (avoided diesel

cost). The 15 kW turbine generators at the village Garung, due to the entrance of

electricity supplied by the utility PLN, has now been moved to the village Ciderum, near

the city of Bogor in cooperation with the management of the forest protection of Gede

Pangrango Mountains, as part of their environmental responsibility.

YBUL presently works on developing small scale micro-hydro systems, aimed to

support the Indonesian government to expand renewable energy development and

rural electrification campaign. YBUL’s strategies shifted paradigms from “development

project approach” to “community movement” to the small scale micro-hydro development,

based on local need. Another important strategy employed by YBUL is integrating two

important sectors : renewable energy development and forestry reservation.

The supply side of the program (forestry) can promote conservation watershed areas

through e.g. maintenance and or improvement of forestry, as part of the climate

mitigation efforts, while at the demand side, the energy sector can promote micro-hydro

generators to substitute fossil fuel based on electricity provided by the State

Electricity Company.

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Figure 7. Hydropower that introduced by

YBUL

The consortium agreed to build a pilot project area for two very small micro-hydro

systems (650W and 4.5KW) in Ciderum Village, Caringin sub-district, Bogor, West Java,

which has various functions: training for local community to become experts on

micro-hydro development, providing a field laboratory for students, providing home

electricity for the rural poor living in the village, promoting local productive uses,

supporting information and education, improving sanitation through provision of clean

water, etc.

In carrying out these approaches, started in mid

2008, YBUL has collaborated with different

stakeholders through a consortium including the

following partners: The Gunung Gede Pangrango

National Park, Bandung Institute of Technology (ITB),

The Conservation International (CI), Bogor Pakuan

University, Lembaga Pertanian Sehat, Community

Organizations called Tunas Mekar and Gerakan

Listrik Masyarakat (Gelimas), as well as Center for

Energy and Power Studies (CEPS) – PLN.

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CRITICAL ISSUES IN RURAL TECHNOLOGIES (INCLUDING

COMMUNITY PARTICIPATION) DISSEMINATION AND

ADOPTION/IMPLEMENTATION

A Brief Profile of Indonesia

C H A P T E R 5 .

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The researchers from Centre for Appropriate Technology Development (B2PTTG) Indonesian

Institute of Science (LIPI), Prasetyo, Apriliyadi, Hidajat, and Novianti (2009) has conducted a

research to know about “Resistance To Innovation : Case Of Appropriate Technology

Implementation In Rural Agriculture Communities”. They found that resistance is a normal

response to new ideas.

Generally, acceptance to innovation will not happen until the receivers (individual or community) see

significant advantages. This is known as a typical “safety first” attitude. Their experience in

implementing appropriate technology to four different communities in Indonesia i.e. fish farm

community in Subang (West Java), agro forestry community in Tanete (South Sulawesi),

horticulture farm community in Selengan (West Lombok), and rural farm community in Alor

(East Nusa Tenggara) indicated such phenomenon.

Various transferred technologies were commonly accepted and in fact, became assets to establish

home industries and/or agro-businesses. No significant resistances were shown once introduced

technology has met basic needs.

However, few cases of resistance – if not rejection – were found in a range of efforts and

participation level. Some developed into rejections eventually, while others were put in further

considerations. A study of their experience showed that a success in inducting innovation is

influenced by the type and level of technology being transferred, the added value delivered in

social and economy, and its conformity to those collective values.

Critical Issues in Rural Technologies (including community participation)

dissemination

and adoption/implementation

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C O N C L U S I O N S

A Brief Profile of Indonesia

C H A P T E R 6 .

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C o n c l u s i o n s

1. Inclusive growth and sustainable development have been declared in Indonesia National Long-Term

Development Plan 2005-2025 and National Medium-Term Development Plan (RPJMN) 2010-2014.

2. Inclusive Development in Indonesia emphasizes on 4 (four) aspects : infrastructure development;

universal education and access to health; poverty reduction programs; and microfinance schemes.

3. Those of inclusive development programmes have been implemented whether in The Mid-Term Development of

2004-2009 and 2010-2014, however government still needs to ensure and conduct an effective monitoring and

evaluation to measure how impacts to the rural-urban people livelihood and to what extent the impacts on pace

and pattern of national economy growth.

4. Rural Technologies or commonly called as an appropriate technologies for rural people in Indonesia have been

integrated to the National Innovation System (NIS). Organizational setting for managing the NIS in Indonesia

which mainly directed by sort of ministries, state owned entreprises, and other state agencies, should be more

open to empower and utilize private organization cappacities, including NGO’s, which also play role and have

experiences at the same field in term of research, science, knowledge, and technologies.

5. The Ministry of Home Affairs has formed 118 Posyanteks (the service center for implementing rural/urban

appropriate technology), in 28 Provinces along the year of 2010-2013. Generally, Posyanteks have done

successfully on rural improvement technology for agricultural activities; food processing technology; waste

management technology; and productivity improvement for micro and small business. Indonesian Institute of

Science (LIPI) also has done many projects on Appropriate Technology Development .

6. Meanwhile many NGO’ also have contributed to assist rural people and have made a great impact for rural

lifes, such as: rural electrification, eco-village and zero waste technology; energy independence based on local

resources (green energy); water availibility and sanitation improvement; agriculture and aquaculture technologies;

waste treatment; water treatment; and other projects regarding the purpose of inclusive growth and sustainable

development in the country.

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A Brief Profile of Indonesia

R E F E R E N C E S

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R e f e r e n c e s

1. Ianchovichina E. and Lundstrom S. 2009. What is Inclusive Growth?. The note was requested by donors

supporting the Diagnostic Facility for Shared Growth. February 10, 2009.

2. Mari Elka Pangestu. 2011. ASEAN Economic Meeting Focuses on Inclusive, Equitable Growth. Association

of Southeast Asian Nations Economic Ministers Plenary Meeting in Manado, Indonesia, Aug. 11, 2011.

3. Ministry of Home Affairs. 2013. Katalog Gelar Teknologi Tepat Guna Nasional XV. Provinsi Sumatera Barat,

26-30 September 2013.

4. Ministry of National Development Planning/National Development Planning Agency (Bappenas). 2011.

Infrastructure Development Strategy In Indonesia. Seminar Presentation Material. Jakarta, 13 January 2011.

5. Ministry of Trade. 2014. Total Balance of Indonesia Trade Period : 2008-2013. Trade Data and Information

Center, Ministry of Trade.

6. Organisation for Economic Co-operation and Development. 2013. Southeast Asian Economic Outlook 2013:

With Perspectives on China and India. Organisation for Economic Co-operation and Development (OECD).

7. Prasetyo, Apriliyadi, Hidajat, and Novianti. 2009. “Resistance To Innovation : Case Of Appropriate

Technology Implementation In Rural Agriculture Communities”. Centre for Appropriate Technology

Development (B2PTTG) Indonesian Institute of Science (LIPI).

8. Suharyadi, A., Yumna, A. Raya, U.R., and Marbun D.. 2010. Review of Government‟s Poverty Reduction

Strategies, Policies, and Programs in Indonesia. Supported Research by ADB. The SMERU Institute, Jakarta,

2010.

9. Taufik, T.A. 2007. Indonesia‟s Sub-National Innovation System Policy and Programmes. Presented at

National Workshop on Sub-National Innovation Systems and Technology Capacity Building Policies to Enhance

Competitiveness of SMEs., Kartika Chandra Hotel, Jakarta, Indonesia 3 -4 April 2007. Agency for the Assessment

and Application of Technology.

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Site Source :

• http://www.bps.go.id

• https://www.changemakers.com

• http://www.cpr-indonesia.com

• http://www.developmentprogress.org

• http://diandesa.org

• http://www.gfmag.com

• http://indonesiadata.co.id

• http://stat.wto.org/

• http://www.travelandflavors.com

• http://worldpopulationreview.com

• http://www.ybul.or.id

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HARIS BUDIYONO C H A I R M A N

Center for Research on Autonomy and Regional Develovement,

L E C T U R E R

Faculty of Agribusiness, Islamic “45” University, UNISMA

Jl. Cut Meutia No. 83, Kecamatan Bekasi Timur, Kota Bekasi, 17113

INDONESIA

WAWAN MUNAWAR KHOLID Head of Sub-Directorate for Socialization and Cooperation of

Rural Appropriate Technology

Directorate General of Village and Community Empowerment

Ministry of Home Affairs

Jl. Medan Merdeka Utara, No. 7, Jakarta, 10110

INDONESIA