VOLUNTARY NATIONAL REVIEWS (VNR) · Minister of National Development Planning / Head of National...

NO POVERTY

ZEROHUNGER

GOOD HEALTHAND WELL-BEING

QUALITYEDUCATION

GENDEREQUALITY

CLEAN WATERAND SANITATION

AFFORDABLE AND CLEAN ENERGY

DECENT WORK AND ECONOMIC GROWTH

INDUSTRY, INNOVATIONAND INFRASTRUCTURE

REDUCEDINEQUALITIES

SUSTAINABLE CITIES AND COMMUNITIES

RESPONSIBLECONSUMPTION AND PRODUCTION

LIFE ON LAND

PEACE, JUSTICEAND STRONGINSTITUTIONS

CLIMATEACTION

LIFE BELOW WATER

PARTNERSHIPSFOR THE GOALS

VOLUNTARY NATIONAL REVIEWS (VNR) Empowering People and

Ensuring Inclusiveness and Equality

2019

Minister of National Development Planning /Head of National Development Planning Agency

PREFACE

Indonesia asserts its commitment to implement the 2030 Agenda for SustainableDevelopment, also known as the Sustainable Development Goals [SDGs). As part of thiscommitment, Indonesia has submitted its first Voluntary National Reviews (VNR) in 201.7.Since then, Indonesia has reassessed its national policies and agendas and once againsubmits its VNR in201.9.

The implementation of SDGs has been the priority ever since the SDGs being adoptedas a global agenda at United Nations General Assembly in New York, September 2015.Indonesia's national development agenda has been aligned with the 17 goals and 94 out of169 measurable targets of SDGs. This is especially true in President Joko Widodo first termof presidency (2015-201.9) whereby "Nawacita" (literally, the nine visionsJ was chosen asthe national development vision. Furthermore, the agenda has also been integrated indevelopment policies, strategies and programs of National Medium-Term DevelopmentPlan [RP]MN), and translated into Government Work Plan (RKP) with its associatedbudget. The integration of SDGs into development plan is also implemented in subnationallevel reflected in the Medium-Term Regional Development Plan IRPJMD) and RegionalWork Plan IRKPD].

The SDGs implementation is conducted by involving all stakeholders: governmentand parliament, philanthropic and business societies, civil society organizations and media,as well as academics and experts to ensure achieving SDGs in line with the principles ofinclusiveness and no one left behind. There are some documents prepared for SDGsimplementation, among others: Presidential Regulation and Minister for NationalDevelopment Planning's Regulation as the legal basis, technical guidelines to developaction plan, metadata of SDGs'indicators, communication strategy, and SDGs disseminationto all stakeholders, all of which at national and sub-national levels.

This review contains highlights of Indonesia's achievements in implementing SDGs.

This VNR specifically focuses on 6 priority goals, namely Goal 4, B, 10, L3, L5, and 1.7.

Furthermore, Indonesia also reports the progress of the rest of the goals. For the past twoyears, lessons learned in the 2017 VNR serve as a reference to improve the effectivenessand efficiency of Indonesia's national and subnational policies. The data used in this reportis mainly from Statistics Indonesia and relevant ministries and agencies.

The production of this report was coordinated by Ministry of National DevelopmentPlanning/National Development Planning Agency and supported by the Ministry of ForeignAffairs. Highest appreciation and gratitude are extended to all members of the NationalCoordination Team for SDGs Implementation for their hard work and contributions. Theappreciation and gratitude are especially conveyed to:

Address : Jl. Taman Suropati No. 2 Jakarta 10310

Phone (+62 2l) 3843655,3 193481 I ; Fax : (+sl 2l) 31934779; website : www'bappenas'go'id

1. Deputy for Maritime and Natural Resources Affairs of Ministry of NationalDevelopment Planning as the Chair of SDGs National lmplementing Team and PersonIn Charge for Environment Development Pillar; Deputy for Human Development andDevelopment of the Community and Culture of Ministry of National DevelopmentPlanning as the Vice Chair I ofSDGs National lmplementing Team and Person In Chargefor Social Development Pillar; Deputy for Economic Affairs of Ministry of NationalDevelopment Planning as the Vice Chair II of SDGs National Implementing Team andPerson In Charge for Economic Development Pillar; Deputy for Political Affairs, Law,Defence and Security of National Development Planning as the Vice Chair III of SDGs

National Implementing Team and Person In Charge for lustice and GovernanceDevelopment Pillar; Senior Advisor of the Minister of National DevelopmentPlanning/Head of National Development Planning Agenry for Equity and RegionalDevelopment as Head of Working Group of the Environment Development Pillar; andSenior Advisor of the Minister of National Development Planning/Head of NationalDevelopment Planning Agenry for Institutional Interrelations as Head of WorkingGroup ofthe lustice and Governance Development Pillar.

2. Senior Advisor of the Minister of National Development Planning/Head of NationalDevelopment Planning Agency for Synerry of Economic Affairs and Financing as Headof Secretariat of SDGs, who organized the VNR development and finalization.

3. Directors under the Ministry of National Development Planning/National DevelopmentPlanning Agency as the coordinators for formulating each of the Goal namely AmichAlhumami, MA, M.Ed, Ph.D, Director for Education and Religious Affairs; Dr. Hadiat,MA, Director for Higher Education, Technological, Science and Culture; Dr. ViviYulaswati, M.Sc, Director for Poverty Reduction and Social Welfare; Ir. R. AnangNoegroho Setyo Moeljono, M.E.M, Director for Food and Agriculture Affairs; PungkasBahjuri Ali, STP, MS, Ph.D, Director for Community Health and Nutrition; WoroSrihastuti Sulistyaningrum, ST, MIDS, Director for Family, Women, Children, Youth andSport; Ir. losaphat Rizal Primana, MSc, Director for Energy, Mineral and MiningResources; Dr. lr. Rachmat Mandiana, MA, Director for Energy, Telecommunication andInformatics; Mahatmi Parwitasari Saronto, ST, MSIE, Director for Manpower andExpansion of Employment Opportunities; Dr. Muhammad Cholifihani, SE, MA, Directorfor Financial Services and State-Owned Enterprises; Ir. Ahmad Dading Gunadi, MA,Director for Development of Small and Medium Enterprises and Cooperatives;Leonardo Adypurnama Alias Teguh Sambodo, SP, MS, Ph.D, Director for lndustry,Tourism and Creative Economy; Ikhwan Hakim, ST, MSc, Ph.D, Director forTransportation; Maliki, ST, MSIE, Ph.D, Director for Planning Population and SocialSecurity; Dr. Velix Vernando Wanggai, SIP, MPA, Director for Disadvantages Regions,Transmigration and Rural Development; lr. Medrilzam, M.Prof.Econ, Ph.D, Director forthe Environment; Dr. Ir. Sri Yanti IS, MPM, Director for Marine Affairs and Fisheries; Dr.Nur Hygiawati Rahayu, ST, MSc, Director for Forestry and Conservation of WaterResources; Tri Dewi Virgiyanti, ST, MEM, Director for Development of Urban, Housin&and Settlement Areas; Drs. Wariki Sutikno, MCP, Director for Political and

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Communication Development; Prahesti Pandanwangi, SH, Sp.N, LL.M, Director for Lawsand Regulations; Ir. Wisnu Utomo, M.Sc, Director for Foreign Poliry and InternationalDevelopment Cooperation; Tatang Muttaqin, S.Sos., M.Ed., Ph.D, Director for the StateApparatus; RM Dewo Broto foko P, SH, LLM, Director for Defense and Security; Ir.Boediastoeti Ontowirjo, MBA, Director for State Finance and Monetary Analysis; Dr. Ir.Yahya Rachman HidayatMSc, Director for Trade, Investment, and InternationalEconomic Cooperation; Drs. Sri Bagus Guritno, Ak, MSc, CA, Director for Government-Private Partnership and Engineering Design; and Eka Chandra Buana, SE, MA, Directorfor Macro Planning and Statistical Analysis.

4. Coordinating Ministry of Human Development and Culture; Coordinating Ministry ofEconomic Affairs; Coordinating Ministry of Maritime Affairs; Coordinating Ministry ofPolitics, Law and Security; Ministry of Foreign Affairs; Ministry of Social Affairs;Ministry of Health, Ministry of Agriculture; Ministry of Education and Culture; Ministryof Research, Technology and Higher Education; Ministry of Women Empowerment andChild Protection; BPS-Statistics Indonesia; Ministry of Enerry and Mineral Resources;Minisrry of Manpower; Ministry of Tourism; Ministry of Cooperatives, Small andMedium Enterprises; Ministry of Industry; Ministry of Public Works and PublicHousing; Ministry of Village, Development of Underdeveloped Regions andTransmigration; Ministry of Communication and Informatics; Ministry of State OwnedEnterprises; Ministry of Environment ond Forestry; National Disaster ManagementAuthority; Ministry of Marine Affairs and Fisheries; Meteorological, Climatological, andGeophysical Agency; National Commission on the Elimination of Violence againstWomen; Ministry of Law and Human Rights; Ministry of Administrative andBureaucratic Reform; Ministry of Finance; Ministry of Trade; National PublicProcurement Agency; Bank Indonesia; Secretariat of Desk Papua, Ministry of NationalDevelopment Planning/Bappenas; Secretariat of Indonesia Climate Change Trust Fund

0CCTF], and Secretariat oflndonesia Green House Gas Emission.

5. Representatives of civil society organizations: PP Muhammadiyah, PB Nahdatul UlamaIndonesia Teaches [ndonesia Mengaiar), Ruangguru, Innovation for lndonesia's SchoolChildren (lnovasi untuk Anak Sekolah lndonesia/INOVASI), OHANA (OrganisasiHarapan Nusontara) Indonesia; Migrant Care; CARE International Indonesia (CllJ;Yayasan KARINA; Partner for Resilience Indonesia; Red Cross Climate Center; NationalPlatform for Disaster Risk Reduction; Indonesian Society for Disaster Management;Partnership for Governance Reform; Joint Committee for Leaded Gasoline Phase-out; Internotional Federation of Red Cross Partners for Resilience; Nature Indonesia;Peat Lands Partners Fund Indonesia; TERANGI Foundation; Aliansi RemajaIndependen; Prakarsa Borneo; PKTA Alliance; Wahana Visi Indonesia; Indonesia untukKemanusiaan (lKa); Indonesia Planned Parenthood Association (PKBI); Indonesia forGlobal Justice (lcf; 2030 Youth Force lndonesia; Perkumpulan Prakarsa; KSBSI(Konfederasi Serikat Buruh Sejahtera Indonesia]; Pusat Transformasi KebijakanPublik; Kapal Perempuan and Cakra Wikara Indonesia.

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6. Representatives of philanthropy and business society: Tanoto Foundation, BAZNAS(Badan Amil Zakat Nasional); The Indonesia Business Council for SustainableDevelopment IBCSDJ, Indonesia Global Compact Network (IGCN); Astra Honda Motor(AHMJ; lndonesian Chamber of Commerce and Industry (KADIN); IndonesianPhilanthropy Association (FI); and PT. Vale Indonesia.

7. Academics and experts of SDGs Center, Padjajaran University; University of Indonesia;Lembaga Demografi, University of Indonesia; Center on Child Protection and Wellbeing(PUSKAPA), University of Indonesia; Center for Strategic and International Studies(CSIS); and The SMERU Research Institute.

8. Indonesia development partners including Office of the United Nations ResidentCoordinator (UNRC); United Nations Development Programme (UNDP); United NationsChildren's Fund IUNICEF); United Nations Educational, Scientific and Cultural0rganization (UNESCO); Food and Agriculture Organization [FAO); lnternationalLabour Organization ILO); Deutsche Gesellschaft fiir Internationale Zusammenarbeit(GlZ) Indonesia; and Department of Foreign Affairs and Trade ofAustralia (DFATJ.

9. Other parties that contributed valuable inputs to lndonesia 2019 VNR both throughonline and offline public consultations.

10. Finally, SDGs Secretariat at the Ministry of National Development Planning/NationalDevelopment Planning Agency that has been persistently dedicated to tireless effortsto coordinate and finalize the formulation of 2019 VNR.

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Minister of National Development Planning /Head of National Development Planning Agency

OPENING STATEMENT

The fulfilment of SDGs has always been a development priority forthe Government of Indonesia. By constitutional mandate, Indonesiais obliged to advance public welfare and to improve the quality of lifefor all Indonesian citizens. The Pancasila ffive pillars) as Indonesia'sideolory also emphasizes the importance of social justice for allcitizens. Consequently, the SDGs have been mainstreamed into thenational development agenda and the Indonesia's Vision 2045.Nevertheless, Indonesia believes that the 2030 agenda forSustainable Development Goals will not be achieved withoutmultilateral cooperation. Issues of quality of education, employment

inequality, climate change, peace and iustice as well as inclusive cooperation are commonglobal challenges that require a multi-stakeholder approach, which includes the exchange ofbest practices.

It is with great honor that I convey theZAL9 Voluntary National Review of the Republicof Indonesia's Implementation of the Sustainable Development Goals. This is the second timethat Indonesia has published this review since 2OL7.ln the ZALT review, we highlighted theimportance of reducing povertyand improving welfare through 2 (two) main aspects, whichare: [1) Improving the quality of human resources; and (2) Enhancing economic opportunityand sustainable livelihood.

The Government of Indonesia aims to be as thorough as possible in formulating the20L9 VNR Indonesia has demonstrated thatwe have been able to reduce inequality. This ispossible due to high and inclusive economic growth, increased job opportunities, increasededucation access in all levels, as well as reduced greenhouse gas (GHG) emission and reduceddisaster ris[ supported'by multi-stakeholder partnership and good governance.

In addition to 6 (six) highlighted goals as per this year's theme, "Empowering Peopleand Ensuring Inclusiveness and Equality", this report also includes a brief update on theeleven remaining goals. Some features of Indonesia's SDGs include: [1) a multi-stakeholderapproach, (2) innovative financing and (3) low carbon development

I hope this report can serve as an encouragement for the global fulfilment of the 2030Agenda for Sustainable Developmenl I look forward to fruitful exchanges at the 2019 High-level Political Forum and beyond.

I SJune 2019

Development Planning /.S. Brodionegoro

HDevelopment Planning Agency

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Address : Jl. Taman Suropati No. 2 Jakarta 10310

Phone (+62 2l)3843655,31934811;Fax: (+62 2l)31934779;website: www.bappenas.go.id

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7

INDONESIA’SVNR2019HIGHLIGHT

EMPOWERINGPEOPLEANDENSURINGINCLUSIVENESSANDEQUALITY

ININDONESIA

FortheRepublicofIndonesia,implementingnationaldevelopmentagendaisimplementingSDGs.TheSDGsareinstitutionalizedfromthehighestnationalleveltosubnationalentities,and integrated innational and subnational developmentplanning.This is amassive andcollaborativeendeavorbetweengovernmentandnon-stateactorsdesigned to serve264million people – a third of which are children – comprising 1,300 ethnic groups across17,000islands.

Indonesia is being successful in reducing inequality, complemented by sustained andinclusiveeconomicgrowthandaccountablegovernance.Povertyhasbeenreducedtosingledigitforthefirsttimeinhistory,jobopportunitiesandaccesstoeducationincreasedatalllevels,whileGHGemissionanddisasterriskswerereduced.

This VNR has been developed with inclusive approach and through online and offlineconsultations.Hereisourstory:

InclusiveandConsistentEconomicGrowth

• GDPgrewconsistentlyby5%annually(2014-2018).

ENDGOAL

ENABLER

8

• In 2015-2018, unemployment rate decreasedwith lower female unemployment ratefrom6.4%to5.3%,and9.38millionjobswerecreated.

• In2014-2018,povertyratedecreasedfrom10.96%to9.66%andGiniRatiodecreasedfrom0.414to0.384.

• In 2014-2017, financial inclusion increased from 36% to 49%, with an increase offinancialaccessforthepoorestfrom22%to37%.

Achievingnearuniversaleducation

• In 2015-2018, adjusted net attendance rate at preprimary education increased from79.4% to 83.3%, Gross Enrollment Rate at Junior Secondary School increased from91.17%to91.52%,atSeniorSecondarySchoolincreasedfrom78.02%to80.68%andTertiarylevelincreasedfrom25.26%to30.19%.

• Genderinequalityatalllevelsisalmostnon-existent,whileaccesstoPrimaryandJuniorSecondarySchoolisalmostequalacrossincomegroups.

• Almosthalfofyouthparticipatesinformalandnon-formaleducation.

SustainingClimateActionandManagingDisaster

• LowCarbonDevelopmenthasbeenmainstreamedinthenationaldevelopmentplanningagenda.

• During 2010-2017, GHG emission has been reduced by 22.5% from baselineaccumulativeof13billiontonCO2e,anditsintensityby27%frombaselineof560tonCO2eperbillionrupiah.

• During2010-2017,enhanceddisastermanagementhasreducedthenumberofdeathsandmissing personswith decrease of direct economic loss by 7 trillion rupiah. TheDisasterRiskIndexhasbeenreducedby23.97%(2018).

RealizingAccesstoJusticeandInclusiveInstitutions

• Indonesia’sDemocracyIndexincreasedfrom70.09(2016)to72.11(2017).• Indonesia’sAnti-CorruptionBehaviorIndexincreasedfrom3.59(2015)to3.66(2018).• Birth registration covered 83.55% of all children, 77.11% of children in the poorest

households,and71.92%amongunder-fives(2018).• In2015-2018,±45,000legalaidand±83,000non-litigationactivitieswereprovidedfor

thepoor.

InnovativeDevelopmentFinancing

• Innovativeinstruments,includingGreenSukuk,blendedfinance,Islamiccharity,socialimpactinvestmentshaveleveragedresourceflowsfrombothpublicandprivatesourcesforSDGfinancing.

• SDGs Financing Hub has been established to reduce financing gaps and implementinnovativefinancingsourcesthroughmulti-stakeholdercollaboration.

Broad,inclusiveNationalProcessandStrategicPartnershipBuilding

9

• Parliament is involved since early stages of SDGs conceptualization, whereas theSupremeAuditBoardisinvolvedinauditingSDGspreparationandimplementation.

• 9SDGsCentershavebeenestablishedinprominentnationaluniversities.• South-South and Triangular Cooperation have been strengthenedwithmore partner

countriesandthenexusbetweenpeace,humanitarianassistance,anddevelopment.

OvercomingChallenges

• Remaininggeneralchallengesareuniversalaccess,equalopportunityandtreatmentforall.Strongconcernsinclude:limitedaccesstoresponsivepublicservices,unequalqualityeducationandeconomicopportunity,limitedcomplianceofpublicserviceswithnationalstandards,aswellasinadequatedataandinformation.

• Ongoodgovernance:corruption,lackofaccesstoandqualityofpublicinformation,andlackofinclusivedatainpolicymakingandimplementation.

• Ondisasterrisksandclimatechange:disasterpreparedness,energydiversification,andefficientuseofnaturalresources.

• On domestic resource mobilization: more innovation is needed, particularly on taxcomplianceandadministration.

• Specifically,forvulnerablegroups:preventingviolenceagainstchildrenandprovidingequalopportunitiestoyouthandpeoplewithdisability.

TheWayForward

Indonesia’s Development priorities include strengthening human development throughpovertyreductionandbasicservicesimprovement;reducingregionaldisparitiesthroughconnectivityandmaritimedevelopment;increasingeconomicvalueaddedandjobcreation;andovercomingthedigitaldivide.

10

TABLE OF CONTENTS

PREFACE ............................................................................................................................................................. 2

OPENING STATEMENT BY THE MINISTER OF NATIONAL DEVELOPMENT

PLANNING/ HEAD OF BAPPENAS ............................................................................................................ 6

INDONESIA’S VNR 2019 HIGHLIGHT EMPOWERING PEOPLE AND ENSURING

INCLUSIVENESS AND EQUALITY IN INDONESIA ............................................................................... 7

TABLE OF CONTENTS ................................................................................................................................. 10

LIST OF FIGURES ........................................................................................................................................... 12

LIST OF TABLES............................................................................................................................................. 19

LIST OF BOXES ............................................................................................................................................... 20

ABBREVATION ............................................................................................................................................... 22

CHAPTER 1 INTRODUCTION .................................................................................................................... 31

1.1 Alignment of Sustainable Development Goals (SDGs) and The Nawacita ................ 31

1.2 Commitment on Implementing the Achievement of SDGs.............................................. 31

1.3 SDGs Financing ................................................................................................................................ 33

1.4 Challenges in Implementing SDGs ............................................................................................ 34

CHAPTER 2 METHODOLOGY AND PROCESS FOR PREPARATION OF THE REVIEW ......... 35

CHAPTER 3 POLICY AND ENABLING ENVIRONMENT ................................................................... 37

3.1 Creating Ownership of the SDGs ............................................................................................... 37

3.2 Integrating SDGs into National Development Planning ................................................... 40

3.3 Integration of the Social, Economic and Environmental Dimensions ........................ 42

3.4 Applying The Principle of No One Left Behind .................................................................... 44

3.5 Institutional Framework ............................................................................................................. 46

CHAPTER 4 PROGRESS ON GOALS AND TARGETS .......................................................................... 48

4.1 Voluntary National Reviews (VNR) 2019 .............................................................................. 48

4.1.1 Goal 4. Quality Education .............................................................................................. 48

4.1.2 Goal 8. Decent Work and Economic Growth ......................................................... 87

4.1.3 Goal 10. Reduced Inequality ..................................................................................... 111

4.1.4 Goal 13. Take Urgent Action to Combat Climate Change and

Its Impacts...................................................................................................................... 127

11

4.1.5 Goal 16. Peace, Justice and Strong Institutions .................................................. 145

4.1.6 Goal 17. Partnership for the Goals .......................................................................... 171

4.2 Progress of VNR 2017 and 2018 ............................................................................................ 196

4.2.1 Goal 1. No Poverty ......................................................................................................... 196

4.2.2 Goal 2. No Hunger .......................................................................................................... 198

4.2.3 Goal 3. Good Health and Well Being ....................................................................... 200

4.2.4 Goal 5. Gender Equality ............................................................................................... 206

4.2.5 Goal 6. Clean Water and Sanitation ......................................................................... 210

4.2.6 Goal 7. Affordable and Clean Energy ...................................................................... 211

4.2.7 Goal 9. Industry, Innovation, and Infrastructure ............................................... 213

4.2.8 Goal 11. Sustainable Cities and Communities ..................................................... 217

4.2.9 Goal 12. Responsible Consumption and Production ....................................... 218

4.2.10 Goal 14. Life Below Water .......................................................................................... 220

4.2.11 Goal 15. Life on Land .................................................................................................... 222

CHAPTER 5 MEANS OF IMPLEMENTATION ................................................................................... 223

5.1 General Policy Umbrella ............................................................................................................ 223

5.2 The Means of Implementation ................................................................................................ 224

CHAPTER 6 WAY FORWARD ................................................................................................................. 236

CHAPTER 7 CONCLUSION ...................................................................................................................... 237

REFERENCES ............................................................................................................................................... 241

STATISTICAL ANNEX................................................................................................................................ 245

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LISTOFFIGURES

Figure1. Interlingkagesbetween6goalsinVNR2019....................................................43

Figure2. SDGsNationalCoordinationTeam.........................................................................47

Figure3. GrossEnrolmentRate,2015-2018.........................................................................49

Figure4. UppersecondaryandTertieryGERRatiobetweenthePoorestQuintile

andtheRichestQuintile,2000-2018.....................................................................50

Figure5. BasicEducationGERRatiobetweenthePoorestandtheRichest

Quintile...............................................................................................................................50

Figure6. SchoolCompletionRate,2015-2018Source:SusenasKor,2000,2010,

2015-2018........................................................................................................................51

Figure7. SchoolCompletionRates,byGender,2015-2018...........................................52

Figure8. Out-of-SchoolRatio,byAgeGroup,2000-2018...............................................52

Figure9. Out-ofSchoolRate,ByLocation,WealthQuintile,andAgeGroup,

2018.....................................................................................................................................53

Figure10. ProportionofSchoolswithAccesstoInternetforLearning,2016-

2018.....................................................................................................................................59

Figure11. ProportionofSchoolswithAccesstoComputersforLearning,2016-

2018.....................................................................................................................................59

Figure12. ProportionofSchoolswithAccesstoElectricity,2016-2018....................60

Figure13. ProportionofSchoolswithAccesstoToilet(basicsanitationfacilities)

bySex,2016-2018.........................................................................................................60

Figure14. ProportionofSchoolsWithAccesstoCleanWater,2016-2018...............61

Figure15. ProportionofSchoolsWithHandWashingFacilities,2016-2018...........61

Figure16. PercentageofTeacherswithMinimumQualificationofS1/DIV,2016-

2018.....................................................................................................................................62

Figure17. TrendofPercentageofCertifiedTeachers,2016-2018................................62

Figure18. Proportionofchildrenandyoungpeopleattheendoflowersecondary

achievingatleastaminimumproficiencylevelinreadingand

mathematics,2000-2015...........................................................................................63

13

Figure19. Proportionofchildrenandyoungpeopleattheendofprimary

achievingatleastaminimumproficiencylevelinreadingand

mathematics,2016........................................................................................................63


achievingatleastaminimumproficiencylevelinreadingbysex,2000-

2015.....................................................................................................................................63


achievingatleastaminimumproficiencylevelinmathematicsbysex,

2000-2015........................................................................................................................63


achievingatleastaminimumproficiencylevelinreadingbySocio-

EconomicStatus,2000-2015....................................................................................64


achievingatleastaminimumproficiencylevelinmathematicsbySocio-

EconomicStatus,2000-2015....................................................................................64


achievingatleastaminimumproficiencylevelinreadingbyLocation,

2000-2015........................................................................................................................64


achievingatleastaminimumproficiencylevelinmathematicsby

Location,2000-2015....................................................................................................64

Figure26. PrimarySchoolChildreninGrade4AchievingatLeastaMinimum

ProficiencyLevelinReading,bySexandProvince,2016............................65

Figure27. PrimarySchoolChildreninGrade4AchievingatLeastaMinimum

ProficiencyLevelinMathematics,bySexandProvince,2016..................65

Figure28. YouthParticipationinFormal/Non-formalEducationandTraining,

2009-2018........................................................................................................................74

Figure29. YouthParticipationinFormal/Non-formalEducationandTrainingby

Characteristic,2018......................................................................................................74

Figure30. WorkforcebasedonLevelofEducationCompleted.......................................74

Figure31. WorkforcebyCompletedLevelofEducation....................................................75

14

Figure32. Working/LaborForcePercentageBasedonHighestCompleted

Education,2008-2018.................................................................................................76

Figure33. Participationof5and6YearOldsinOrganizedLearning,2002,2010,

2015-2018........................................................................................................................81

Figure34. Participationof5and6yearoldsinOrganizedLearningBasedon

Gender,2002,2010,2015-2018.............................................................................81

Figure35. Urban-RuralDisparityinParticipationof5and6yearoldsinOrganized

Learning.............................................................................................................................81

Figure36. Participationof6yearoldsinOrganizedLearningBasedonIncome

Level,2002,2010,2015-2018.................................................................................82

Figure37. Participationof6yearoldsinOrganizedLearningforDIYogyakarta,

WestPapuaandPapuaProvinces,2002,2010,2015-2018.......................82

Figure38. Participationof5and6yearoldsinOrganizedLearningbasedonTypes

ofSchool,2015-2018...................................................................................................83

Figure39. RealGDPperCapita(millionIDR)andRealGDPperCapitaGrowth

(%)........................................................................................................................................88

Figure40. ProportioninTotalEmployment(%)...................................................................89

Figure41. RealGDPGrowthperEmployment(%)andGrowthofGDPperperson

employedusingPPP(%)............................................................................................90

Figure42. ProportionofFormalEmploymentbySex(%)................................................90

Figure43. ProportionofInformalEmploymentinAgriculture(left)andNon-

agricultureSector(right)byGender(%)............................................................91

Figure44. ProportionofInformalEmploymentinNon-agricultureSectorby

Education(%).................................................................................................................92

Figure45. UnemploymentRatebySex(left)andLocation(right)................................92

Figure46. UnemploymentRatebyEducationBackground(left)andPersonswith

Disabilities(right).........................................................................................................93

Figure47. UnderemploymentbySex(left)andLocation(right)...................................94

Figure48. AverageHourlyEarnings(IDR)...............................................................................94

Figure49. MinimumWageAcrossRegionsandMSEandMLEComparison.............95

Figure50. YouthUnemployment(%)andNEET(%)..........................................................97

Figure51. ChildLabourfromAged10to17(%).................................................................101

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Figure52. TourismSectorContributiontoGDP(%)andEmployment(%)..........103

Figure53. ForeignandDomesticTourists(million)andForeignReservefrom

TourismSector.............................................................................................................104

Figure54. NumberofCommercialBanksandATMs(per100,000adults)and2017

GlobalFindex................................................................................................................105

Figure55. ProportionofSMEsthathaveaccesstofinancialservices(%)and

ProportionofSMEsCredittoTotalCredit(%)..............................................105

Figure56. DirectionofRegionalDevelopment....................................................................107

Figure57. LongTermInequalityTrend(GiniRatio),1976-2018...............................112

Figure58. LongTermInequalityTrendinIndonesia(GiniRatio)Urban-Rural,

1976-2018.....................................................................................................................112

Figure59. TrendofExpenditureperCapita,2000-2018................................................113

Figure60. TheilIndex.....................................................................................................................114

Figure61. TotalNationalConsumptionGrowth.................................................................115

Figure62. TotalConsumptionGrowthforUrban-Rural..................................................116

Figure63. NationalPovertyRate...............................................................................................116

Figure64. ComparisonofNationalPovertyRatewithPercentageofPoorin

UnderdevelopedRegions........................................................................................117

Figure65. NumberandProportionofJKNMembership.................................................118

Figure66. NumberofPKHBeneficiariesandBudgetAllocationforPKH................118

Figure67. ProportionofHouseholdsasPKHBeneficiariesbyIncomeQuintile..119

Figure68. ProgressofVillageDevelopment,2014and2018.......................................121

Figure69. AverageEconomicGrowthinUnderdevelopedRegions...........................122

Figure70. ProportionofPopulationLivingBelow50%ofMedianIncome...........122

Figure71. ProportionofPopulationLivingBelow50%ofMedianIncome,by

GenderandUrban-Rural.........................................................................................123

Figure72. ProportionofPopulationLivingBelow50%ofMedianIncomeby

DisabilityStatus,2018..............................................................................................123

Figure73. ProportionofSocialSecurityforWorkersMembersandMembershipof

theSocialSecurityforWorkers............................................................................124

Figure74. TheImpactofNaturalDisasters2010–2017...............................................128

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Figure75. DevelopmentsandprojectionsforIndonesia’sdisasterratioindex2015

–2018.............................................................................................................................129

Figure76. BURandTNCDocument..........................................................................................135

Figure77. BaselineValueandCumulativeEmissionPotential2010-2017............136

Figure78. BaselineValueandAnnualEmissionPotential2010–2017....................136

Figure79. BaselineValueandActualIntensityEmission2010–2017......................137

Figure80. AchievementofSectorialEmissionGHGReduction2010-2017............138

Figure81. PathwaytoIndonesia’sNationalGoalsandEqualityforAllthroughGoal

16Implementation.....................................................................................................146

Figure82. NumberofPeopleReceiveLitigationAidandactivitiesofNon-

Litigation,2016-2018...............................................................................................148

Figure83. NumberofLegalAidReceiver,2013-2017...................................................149

Figure84. ProportionofBirthCertificateforChildren(0-17Year)bySocial

EconomicStatus,2014-2018...............................................................................151

Figure85. ProportionofChildforUnder-1YearofAgehavingBirthCertificateby

SocialEconomicStatus,2014-2018.................................................................151

Figure86. ProportionofBirthRegisteredbyAgeGroupandSocialEconomic

Status,2014-2018......................................................................................................152

Figure87. DistributionofBirthCertificateofDeficiencyforunder-5YearofAge

PopulationbySocialEconomicStatus,2014-2018...................................152

Figure88. LayerofInequalityinDevelopmentthatcanLeaveSomeoneBehind167

Figure89. GDP,TaxrevenueandTaxRatio..........................................................................172

Figure90. ComparisonofTaxRatiosamongNeighboringCountries........................172

Figure91. Non-OilandGasExportGrowth...........................................................................176

Figure92. TheWeightedMeanofTariffRatesinSixPartnerCountriesofFTA

Members.........................................................................................................................176

Figure93. TheRatioRemittance................................................................................................177

Figure94. DebtServiceRatio......................................................................................................178

Figure95. PercentageofNationalOpticFiberBackbone................................................180

Figure96. BroadbandAccessPenetration.............................................................................180

Figure97. ProportionofIndividualsusingtheInternet..................................................180

17

Figure98. ConsumersWhoUseStatisticsIndonesiaDatainNationalDevelopment

PlanningandEvaluation..........................................................................................182

Figure99. NumberofExternalVisitorswhoAccessStatisticalDataand

Informationthrough'Website'.............................................................................182

Figure100.PercentageofStatisticsIndonesia’sConsumerSatisfactionRateof

StatisticalDataQuality.............................................................................................183

Figure101.PercentageofConsumersUsingStatisticsDataandInformationof

StatisticsIndonesiaasMainReference.............................................................183

Figure102. NumberofStatisticsandComputerAdministratorinLineMinistries184

Figure103.PercentageofLineMinisterhavingStatisticsandComputer

Administrators.............................................................................................................184

Figure104.NumberofKSSTActivities......................................................................................187

Figure105.KSSTFinancing(billionRupiah)..........................................................................188

Figure106.TrendsofPovertyReductionbasedonExtremePovertyandNational

PovertyLines,2006-2018.......................................................................................197

Figure107.TrendofPKHBudgetAllocationandTotalParticipantsin2014-

2018..................................................................................................................................197

Figure109.ThePrevalenceofStuntinginChildrenunderFiveYearsofAge,2007-

2018..................................................................................................................................199

Figure108.ThePrevalenceofWastinginChildrenunderFiveYearsofAge,2007-

2018..................................................................................................................................199

Figure110.DesirableDietaryPattern(DDP)Score,2009-2018....................................199

Figure111.TrendofMMR...............................................................................................................201

Figure112.TrendofIMR,U5MRandNMR..............................................................................201

Figure113.TrendofCommunicableDiseases.......................................................................202

Figure114.TrendofRiskFactorsofNon-CommunicableDiseases.............................202

Figure115.TrendoftheContraceptivePrevalenceRate..................................................203

Figure116.TrendofTFRandASFR............................................................................................203

Figure117.TrendofJKNCoverage.............................................................................................204

Figure118.PercentageofUnmetNeedsforHealthServices...........................................204

18

Figure119.Percentageofwomenat20-24yearsofageweremarriedforthefirst

timeorlivingtogetherwithoutbeingmarriedatorbefore15yearsold

andatorbefore18years’old................................................................................206

Figure120.TrendofMedianAgeatFirstMarriage.............................................................207

Figure121.PercentageofWomenDPRMembersin1950-2014GeneralElection207

Figure122.NumberofWomenDPDMembersbyProvince,2014-2019...................208

Figure123.PercentageofWomenCivilServantsasEchelonI-IV.................................208

Figure124.Theproportionofhouseholdswithaccesstocleanwater2015-

2018..................................................................................................................................210

Figure125.Theproportionofhouseholdaccesstosanitation2015-2018...............210

Figure126.DevelopmentofCityGasnetwork.......................................................................211

Figure127.RatioofElectrification2010-2019......................................................................212

Figure128.PercentageNationalSteadyRoadCondition..................................................214

Figure129.ProportionofValue-AddedManufacturingSectortoGDP(%)..............215

Figure130.Theproportionofhouseholdslivinginadequatehousingin2015-

2018..................................................................................................................................217

Figure131.Thenumberandlevelofcomplianceofcompaniesthatfollowthe

Proper,.............................................................................................................................219

Figure132.NumberofcompaniesthatapplySNIISO14001certificationin2010-

2017..................................................................................................................................219

Figure133.Marineprotectedareas,Year2015-2018........................................................220

Figure134.MapofpotentialfisheriesinFisheriesManagementAreas(WPP)......221

Figure135.Proportionofforestandlandcoverin2011-2017.....................................222

19

LISTOFTABLES

Table1. AlignmentofSDGsGlobalandNationalTargets...........................................40

Table2. MicroandSmallEntreprisesandMediumandLargeEnterprises

Comparison...................................................................................................................95

Table3. ComparisonofLaborUnionMembersandTotalWorkers...................102

Table4. Indonesia’s Rank in The Commitment to Reducing Inequality (CRI)

Index,2017-2018....................................................................................................114

Table5. Humanrightsviolationcasesreported..........................................................157

Table6. ScoreofIndonesianDemocracyIndex...........................................................159

Table7. IndonesiaAnti-CorruptionBehaviorIndex..................................................160

Table8. Primary Government Expenditures as a Proportion of The Original

ApprovedBudget.....................................................................................................162

Table9. Percentage of Unqualified Opinion of the Ministries and Local

GovernmentFinancialReport............................................................................162

Table10. Percentage of Government Ministries and Local Government that

complywiththeLawonPublicService.........................................................163

Table 11. Percentage of women assuming the decision-making positions in

governmentinstitutions.......................................................................................165

Table12. TypesofKSSTProgram.........................................................................................187

20

LISTOFBOXES

Box1. TheRoleofIndonesian’sSupremeAuditInstitution(SAI)inKeepingthe

SDGs’ImplementationonTracktoMeettheGoalsin2030..............................38

Box2. IntegrationofSDGsintothe2018-2023RPJMDofNTTProvince................41

Box3. CriticalWomenBorninaGrassrootsCommunityACollaborationof

GovernmentandCivilSocietyOrganizations.............................................................44

Box4. ForumofNon-StateActors(NSAForum)GorontaloProvince........................46

Box5. TheImplementationoftheGraduatesTeachinginOutermost,Frontier

andUnderdevelopedAreas(SM3T)Program............................................................55

Box6. Back-to-SchoolMovement(EverythingStartsfromData)/..............................56

Box7. IndonesiaTeaches(IndonesiaMengajar/IM)............................................................57

Box8. InclusiveEducationforAll.....................................................................................................58

Box9. ImprovementofLearningOutcomesParticularlyinLiteracyand

NumeracyforStudentsinEarlyGrades........................................................................67

Box10. RumahBelajar...............................................................................................................................68

Box11. Ruangguru.......................................................................................................................................69

Box12. TanotoFoundationBasicEducationProgram...........................................................70

Box13. TrainingofPrincipalLeadershipQualityImprovement.....................................71

Box14. SekolahGuruKebhinekaan...................................................................................................72

Box15. SekolahLiterasiAnggaranPendidikan–TheEducationBudgetLiteracy

School.................................................................................................................................................73

Box16. TheMustahikEntrepreneurProgram............................................................................76

Box17. SekolahPerempuan...................................................................................................................78

Box18. AkademiParadigta.....................................................................................................................79

Box19. Youth-LedActionResearchforYouthEmpowermentSkills............................80

Box20. ProgramforReducingRural-UrbanInequalities.....................................................96

Box21. AstraandtheDevelopmentofVocationalEducationandTrainings...........98

Box22. Enterprise-BasedVocationalEducation(EVE)PT.SolusiBangun

IndonesiaTbk................................................................................................................................99

Box23. GojekandItsImplicationsonEconomyandEmployment.............................100

21

Box24. BestPractices:SINERGI(StrengtheningCoordinationforInclusive

WorkforceDevelopmentinIndonesia)......................................................................120

Box25. DeskPapuaAccelerationofWelfareofPapuaandWestPapua..................126

Box26. ImplementationofIntegratedRiskReductionVillages....................................131

Box27. MaritimeWeatherForecastInformationandFishingLocationsForecast

forCoastalCommunities......................................................................................................132

Box28. ReducingDisasterRiskCausedbytheChangingClimatethroughthe

ImplementationofConservationAgriculturePrograms.................................133

Box29. BuildingwithNatureIndonesia......................................................................................134

Box30. IndonesiaClimateChangeTrustFund(ICCTF).....................................................139

Box31. MitigationActionbasedonCommunitybyTERANGIFoundation............140

Box32. PeatLandsPartnersFundIndonesia(DMGI).........................................................141

Box33. MeasuringtheImmeasurable:DevelopmentofAccesstoJusticeIndex149

Box34. WaystoInclusion:VillageChildren'sForum(ForumAnakDesa/FAD)to

VoiceChildProtectionIssuesinVillageDevelopmentPlanning

Consultation(MusyawarahPerencanaandanPembangunanDesa/

Musrenbangdes).......................................................................................................................154

Box35. “STOPChildMarriage”Movement.................................................................................155

Box36. HealthyInternet-PreventsViolenceandExploitationofChildren..........156

Box37. InclusiveDevelopmentforVictiminRecovery......................................................157

Box38. CollaborationtoTackleIllicitFinancialFlow.........................................................161

Box39. CitizenVoiceandAction.......................................................................................................164

Box40. TIRAM(TowardsInclusiveNaturalResourceManagementin

Indonesia).....................................................................................................................................165

Box41. SSTC–SomeMilestones.......................................................................................................188

Box42. TowardsMoreEmpoweredLife:ALearningExperiencefromOHANA

Association...................................................................................................................................225

Box43. Community-BasedForestFireControl.......................................................................231

22

ABBREVIATION

3R : Reduce,Reuse,Recycle3T : Terdepan, Terluar, Tertinggal/The borderline frontier, the

outermostandunderdevelopedregionsAC-FTA : ASEAN-ChinaFreeTradeAgreementADB : AsianDevelopmentBankAEoI : AutomaticExchangeofInformationAFAS : ASEANFrameworkAgreementonServicesAHASS : AstraHondaAuthorizedServiceStationAHM : AstraHondaMotorAITISA-FTA : AgreementonTradeinServiceundertheASEAN-IndiaFreeTrade

AreaAJI : AliansiJurnalisIndependen/AllianceofIndonesianJournalistsAK-FTA : ASEAN-KoreaFreeTradeAgreementAMDD : ASEANMedicalDeviceDirectiveANAR : AdjustedNetAttendanceRateANNZ-FTA : ASEAN-Australia-NewZealandFreeTradeAreaAPBD : Anggaran Pendapatan dan Belanja Daerah/Local Government

BudgetAPBN : AnggaranPendapatandanBelanjaNegara/StateBudgetAPH : AparatPenegakHukum/LawEnforcementOfficersAPI : AnnualParaciteIncidenceAPI : AdaptasiPerubahanIklim/ClimateChangeAdaptationAPI-PRB : Adaptasi Perubahan Iklim-Pengurangan Risiko Bencana/Disaster

RiskReduction-ClimateChangeAdaptationARI : AliansiRemajaIndependenARR : AnnualReductionRateASEAN : AssociationofSouthEastAsianNationsASFR : Age-SpecificFertilityRateATCS : AreaTrafficControlSystemsATIGA : ASEANTradeinGoodsAgreementBAKTI : Badan Aksesibilitas Telekomunikasi dan Informasi

/TelecommunicationsandInformationAccessibilityAgencyBAZNAS : BadanAmilZakatNasional-PhilantrophyActorBEKRAF : BadanEkonomiKreatif/CreativeEconomyAgencyBI : CentralBankofIndonesiaBKN : BadanKepegawaianNegara/NationalEmploymentAgencyBLK : BalaiLatihanKerja/VocationalandEducationTrainingCentersBLKKomunitas : BalaiLatihanKerja/CommunityTrainingCenter

23

BMKG : Badan Metereologi Klimatologi dan Geofisika/ Meteorological,Climatological,andGeophysicalAgency

BNP2TKI : Badan Nasional Penempatan dan Perlindungan Tenaga KerjaIndonesia/National Board for the Placement and Protection ofIndonesianOverseasWorkers

BNPB : Badan Nasional Penanggulangan Bencana/National DisasterManagementAgency

BOE : BarrelOilEquivalentBOEPD : BarrelOilEquivalentperDayBOS : BantuanOperasionalSekolah/SchoolOperationalAssistanceBPBD : Badan Penanggulangan Bencana Daerah/Subnational Disaster

ManagementAgencyBPHN : Badan Pembinaan Hukum Nasional/National Law Development

AgencyBPJS : Badan Penyelenggara Jaminan Sosial/Social Security Organizing

BodyBPJSKesehatan : Badan Penyelenggara Jaminan Sosial- Kesehatan/Health Security

SystemAgencyBPJSKetenagakerjaan

: Badan Penyelenggara Jaminan Sosial-Ketenagakerjaan/NationalSocialSecurityforWorkersProgram

BPK : BadanPemeriksaKeuangan/SupremeAuditBoardBPNT : BantuanPanganNon-Tunai/Non-CashFoodAssistanceBPS : BadanPusatStatistik/CentralBureauofStatisticsBPTA : BentukPekerjaanTerburukuntukAnak/WorstFormsofChildLaborBSM : BantuanSiswaMiskin/CashTransferProgramForPoorStudentsBTS : BaseTransceiverStationBUMDes : BadanUsahaMilikDesa/Village-OwnedEnterprisesBUR : BiennialUpdateReportCA : ConservationAgricultureCEPA : ComprehensiveEconomicPartnershipAgreementCII : CAREInternationalIndonesiaCO2e : CarbonDioxideEquivalentCPO : CrudePalmOilCPR : ContraceptivePrevalenceRateCSA : ClimateSmartAgricultureDAK : DanaAlokasiKhusus/SpecialAllocatedFundsDAS : DaerahAliranSungai/WatershedDESBUMI : DesaPeduliBuruhMigran/MigrantWorkerFriendlyVillagesDifagana : DifabelSiagaBencana/DisableDisasterPreparednessDPD : DewanPerwakilanDaerah/RegionalRepresentativeCouncilsDPR : DewanPerwakilanRakyat/HouseOfRepresentatives

24

DRPD : Dewan Perwakilan Rakyat Daerah/Regional House ofRepresentative

DRR : DisasterRiskReductionDSR : DebtServiceRatioEFTACEPA : European Free Trade Association Comprehensive Economic

PartnershipAgreementEMIS : EducationManagementInformationSystemEnMS : EnergyManagementSystemFAD : ForumAnakDesa/VillageChildren’sForumFATF : FinancialActionTaskForceFKK : ForumKebijakanKetenagakerjaan/EmploymentPolicyForumFKTP : FirstLevelHealthFacilitiesFTA : FreeTradeAgrementGDP : GrossDomesticProductGER : GrossEnrolmentRateGermas : GerakanMasyarakatHidupSehat/HealthyLivingSocietyMovementGHG : GreenhouseGasGIC : GrowthIncidenceCurveGKB : GerakanKembaliBersekolah/Back-To-SchoolMovementsGR : GovernmentRegulationGRK : GasRumahKaca/GreenhouseGasGSSDExpo : GlobalSouth–SouthDevelopmentExpoHITS : Holistic,Integrated,Thematic,SpatialHOTS : HigherOrderThinkingSkillsIA : InternetAccessIA-FTA : Indonesia-AustraliaFreeTradeAgreementIAP-PRISMA : Australia-IndonesiaPartnership-PromotingRural Income through

SupportforMarketsinAgricultureICBDA/SAA : IndonesiaCooperativeBusinessDevelopmentAlliance/Sustainable

AgribusinessAllianceICCSR : IndonesiaClimateChangeSectorRoadmapICT : InformationandCommunicationTechnologyIDB : IslamicDevelopmentBankIDHS : IndonesiaDemographicAndHealthSurveyIDI : IndeksDemokrasiIndonesia/IndonesianDemocracyIndexIDR : IndonesianRupiahIka : IndonesiauntukKemanusiaan/IndonesiaforHumanityILO : InternationalLabourOrganizationIM : IndonesiaMengajar/IndonesiaTeachesIMR : InfantMortalityRateINAP : IndonesianNationalAssessmentProgram

25

INOVASI : Inovasi untuk Anak Sekolah Indonesia/Innovation For Indonesia’sSchoolChildren

IP–PTA : Indonesia-PakistanPreferentialTradeAgreementIPAK : IndeksPerilakuAntiKorupsi/AntiCorruptionBehaviorIndexIPD : IndeksPembangunanDesa/VillageDevelopmentIndexIPLT : InstalasiPengelolaanLumpurTinja/SewerageTreatmentPlantIRBI : IndonesianDisasterRiskIndexISO : InternationalStandardsOrganizationJabodetabek : Jakarta-Bogor-Depok-Tangerang-Bekasi/Jakarta and bordering

citiesJHT : JaminanHariTua/InsuranceforSeniorsJKK : JaminanKecelakaanKerja/InsuranceforWork-RelatedAccidentsJKM : JaminanKematian/LifeInsuranceJKN : JaminanKesehatanNasional/NationalHealthInsuranceKADIN : Kamar Dagang Indonesia/ Indonesia Chamber of Commerce and

IndustryKIP : KartuIndonesiaPintar/SmartIndonesiaCardKIP : KomisiInformasiPusat/NationalCommisionforInformationKKG/MGMP

: KelompokKerjaGuru/MusyawarahGuruMataPelajaran/Teachers’WorkGroup/ForumForSubjectTeachers

KKP : KementerianKelautandanPerikanan/MinistryofMaritimeAffairsandFisheries

KKPK : KoalisiKeadilandanPengungkapanKebenaran/CoalitionforJusticeandTruth

KKS : KartuKeluargaSejahtera/ConditionalCashAssistanceKM : KilometerKomnasHAM : KomisiNasionalHakAsasiManusia/IndonesianNationalCommision

onHumanRightsKPAD : KelompokPerlindunganAnakDesa/VillageChildProtectionGroupKPH : KesatuanPengelolaanHutan/ForestManagementUnitsKPK : Komisi Pemberantasan Korupsi/National Commission on

CorruptionEradicationKPPPA : Kementerian Pemberdayaan Perempuan dan Perlindungan

Anak/MinistryofWomenEmpowerementandChildProtectionKPU : KomisiPemilihanUmum/GeneralElectionCommissionsKTI : KawasanTimurIndonesia/EasternIndonesiaRegionKTP : KartuTandaPenduduk/NationalIdentityCardKUA : KantorUrusanAgama/CivilRegistryOfficeKUR : KreditUsahaRakyat/MicrolendingkWh : KilowatthourLBH : LembagaBantuanHukum/LegalAidInstituteLED : LightEmittingDiode

26

LIDi : DisabilityInclusionServices/LayananInklusiDisabilitasLKD : DigitalFinancialService/LayananKeuanganDigitalLNG : LiquiefiedNaturalGasLPG : LiquifiedPetroleumGasLPTK : LembagaPendidikanTenagaKependidikan/InstitutesForEducation

PersonnelTrainingLRT : LightRailTransitLTSHE : Lampu Tenaga Surya Hemat Energi/Energy-Saving Solar Power

LampsMAMPU : Indonesia-Australia Partnership for Gender Equality andWomen

EmpowermentMCK : MandiCuciKakus/SanitationFacilityMDR : MultiDrugResistanceMKJP : Metode Kontrasepsi Jangka Panjang/Long-Term Contraceptive

MethodsMLEs : MediumandLargeEnterprisesMMR : MaternalMortalityRateMoEC : MinistryOfEducationAndCultureMoI : MeansofImplementationMoU : MemorandumofUnderstandingMPA : MarineProtectedAreaMRT : MassRapidTransitMSEs : MicroandSmallEnterprisesMSME : MicroandSmallMediumEnterprisesMusrembangdes : Musyawarah Rencana Pembangunan Desa/Village Development

PlanningConsultationNatCom : NationalCommunicationNCD : Non-CommunicableDiseasesNEET : NotinEmployment,EducationorTrainingNLM : NationalLiteracyMovementNMR : NeonatalMortalityRateNOFB : NationalOpticFiberBackboneNTB : NusaTenggaraBarat/WestNusaTenggaraNTT : NusaTenggaraTimur/EastNusaTenggaraOBH : OrganisasiBantuanHukum/LegalAidOrganizationOJK : FinancialServicesAuthority/OtoritasJasaKeuanganOOSC : Out-of-SchoolChildrenP2P : Peer-to-PeerP2TP2A : Pusat Pelayanan Terpadu Pemberdayaan Perempuan dan

Anak/IntegratedServiceCenterforWomenandChildrenPATBM : Community-BasedIntegrationChildProtection

27

PATBM : Perlindungan Anak Terpadu Berbasis Masyarakat/CommunityBasedIntegratedChildProtection

PAUD : PendidikanAnakUsiaDini/Pre-PrimaryEducationPBI : PenerimaBantuanIuran/AssistanceBeneficiariesPBN : PerformanceBaseNavigationPDPI : PrakiraanDaerahPenangkapanIkan/TheForecastofFishingAreasPerppu : Peraturan Pemerintah Pengganti Undang-Undang/Government

RegulationinLieuofLawPfR : PartnersforResiliencePIP : ProgramIndonesiaPintar/IndonesiaSmartProgramPIP : PenyuluhInformasiPublik/‘PublicInformationCommunicatorPISA : ProgramForInternationalStudentAssessmentPKB : Pengembangan Keprofesian Berkelanjutan/Professional

DevelopmentProgramPKBM : Pusat KegiatanBelajarMasyarakat/Empowerment of Community

LearningCentrePKH : Program Keluarga Harapan/Family Hope Program-Conditional

CashAssistancePKTA : AliansiPenghapusanKekerasan terhadapAnak/Alliance toEnding

ViolenceAgainstChildrenPLB : VocationalandExtraordinarySchoolPMU : PendidikanMenengahUniversal/UniversalSecondaryEducationPNBP : PenerimaanNegaraBukanPajak/Non-TaxRevenuePONED : Pelayanan Obstetri Neonatal Emergensi Dasar/Basic Emergency

ObstetricNeonatalCarePONEK : PelayananObstetriNeonatalEmergensi

Komprehensif/ComprehensiveEmergencyObstetricNeonatalCarePosyandu : IntegratedHealthPostsPPA-PKH : Program Nasional Pengurangan Pekerja Anak Dalam Rangka

Mendukung Program Keluarga Harapan/ Program for ReducingChildLabour

PPATK : Pusat Pelaporan dan Analisis Transaksi Keuangan/IndonesianFinancialTransactionReportsandAnalysisCenter

PPG : ProgramPendidikanProfesiGuru/EducationProgramForTeachingProfession

PPID : Pejabat Pengelola Informasi dan Dokumentasi/Information andDocumentationManagementOfficer

PPN : Perencanaan Pembangunan Nasional/National DevelopmentPlanning

PPP : PurchasingPowerParityPPRK : Perencanaan Pembangunan Rendah Karbon/Low Carbon

DevelopmentPlanning

28

PR : PresidentialRegulationProper : PerformanceRatingProgramPUG : PengarusutamaanGender/GenderMainstreamingPusdalops : PusatPengendalianOperasi/operationalcontrolcentersPuskesmas : PusatKesehatanMasyarakat/CommunityHealthCenterRAN/RAD-GRK : Rencana Aksi Nasional/Rencana Aksi Daerah Gas Rumah

Kaca/NationalActionPlan/subnationalactionplanforGreenHouseGas

RAN-API : Rencana Aksi Nasional Adaptasi Perubahan Iklim/The NationalActionPlanforClimateChangeAdaptation

RAN-GRK : Rencana Aksi Nasional Gas Rumah Kaca/National Action Plan forGreenHouseGas

Raskin : BerasuntukRumahTanggaMiskin/FoodSubsidyRastra : BerasSejahtera/RiceforthePoorRBN : ReformasiBirokrasiNasional/NationalBureaucracyReformRCEP : RegionalComprehensiveEconomicPartnershipRPBD : Rencana Pembangunan Bencana Daerah/Subnational Disaster

ManagementPlanRPJMD : Rencana Pembangunan Jangka Menengah Daerah/Regional

Medium-TermDevelopmentPlanRPJMN : Rencana Pembangunan Jangka Menengah Nasional/National

Medium-TermNationalDevelopmentPlanRPP : RencanaPengelolaanPerikanan/TheFisheriesManagementPlanRTRPJMN : Rancangan Teknokratik Rencana Pembangunan JangkaMenengah

Nasional/Technocratic Design of National Medium TermDevelopmentPlanning

RTSM : RumahTanggaSangatMiskin/VeryPoorHouseholdRUU PekerjaanRumahTangga

: DomesticWorkersProtectionBill

S1/DIV : BachelorDegree/FourthDiplomaSAF : SpecialAllocationFundSatgasPPA : Satuan Tugas Perlindungan Perempuan dan Anak/Taskforce for

WomenandChildrenProtectionSBNP : Sarana Bantuan Navigasi Pelayaran/shipping navigation aid

instrumentSCP : SustainableConsumptionandProductionSDA : SumberDayaAlam/NaturalResourceSDALH : Sumber Daya Alam Lingkungan Hidup/Natural Resource and

EnvironmentSFDRR : SendaiFrameworkforDisasterRiskReductionSIAK : Sistem Informasi Administrasi Kependudukan/Population

AdministrationInformationSystem

29

SIPBM : Sistem Informasi Pembangunan BerbasisMasyarakat/ CommunityBasedDevelopmentInformationSystem

SJSN : SistemJaminanSosialNational/NationalSocialSecuritySystemSKTM : SuratKeteranganTidakMampu/StatementofPovertyLetterSMIs : SmallandMicroIndustriesSMK : SekolahMenengahKejuruan/VocationalSecondarySchoolsSNAK : StrategiNasionalAksespadaKeadilan/NationalStrategyonAccess

toJusticeSNC : SecondNationalCommunicationSNI : StandarNasionalIndonesia/IndonesianNationalStandardSNPHAR : Survei Nasional Pengalaman Hidup Anak dan Remaja/National

SurveyonChildandAdolescenceLifeExperienceSOP : StandardOperatingProcedureSP : SensusPenduduk/PopulationSensusSPHPN : SurveiPengalamanHidupPerempuanNasional/IndonesianNational

Women’sLifeExperienceSurveySSC : KerjasamaSelatan-Selatan/South–SouthCooperationSSTC : Kerjasama Selatan-Selatan Triangula/South – South Triangular

CooperationStranasPKTA : StrategiNasionalPenghapusanKekerasanTerhadapAnak/National

StrategyfortheEliminationViolenceAgainstChildrenStranasPPK : StrategiNasionalPencegahandanPemberantasanKorupsi/National

StrategyforPreventionandErradicationofCorruptionSUPAS : SurveiPendudukAntarSensus/IntercensalPopulationSurveySusenas : SurveiSosialdanEkonomiNasional/NationalSurveyofSocialAnd

EconomyTB : TuberculosisTCM : TbMolecularRapidTestTEI : TradeExpoIndonesiaTEU : Twenty-FootEquivalentUnitTFR : TotalFertilityRateTNC : ThirdNationalCommunicationToT : TrainingofTrainersTPPO : Tindakan Pidana Perdagangan Orang/Criminal Trafficking In

PersonsTUK : TempatUjiKompetensi/CompetencyTestCenterU5MR : Under-FivesMortalityRateUDB : UnitDataTerpadu/UnifiedDatabaseUMB : UsahaMenengahBesar/LargeMediumScaleBusinessUMK : UsahaMenengahKecil/SmallMicroscaleBusinessUN-DESA : UnitedNationsDepartmentofEconomicandSocialAffairsUNFCCC : UnitedNationsFrameworkConventiononClimateChange

30

UPBJJ : UnitProgramBelajarJarakJauh/LongDistanceLearningUnitUPPO : UnitpengolahPupukOrganik/UnitsOrganicFertilizerUSO : UniversalServiceObligationVSAT : VerySmallApertureTerminalWASH : Water,SanitationandHygieneWPP : WilayahPengelolaanPerikanan/FisheriesManagementAreasWWTP : WasteWaterTreatmentPlant

31

CHAPTER1 INTRODUCTION

1.1 AlignmentofSustainableDevelopmentGoals(SDGs)andTheNawacita

The‘Nawacita’–istheVisionandMissionofthePresidentandVicePresidentoftheRepublic of Indonesia, articulating Indonesia’s path towards politically sovereign,economically independent, and culturaly strong nation. The Nawacita is the way toreaffirmIndonesia’sideologicalpathinenduringthesweepofhistoricalchallengesandin welcoming the future. Indonesia National Medium-Term Development Agenda(RPJMN) 2015–2019 is an operational elaboration of Nawacita, formulated with itsstrategic elements, one of which is sustainable development. The SustainableDevelopment Goals (SDGs), is further elaborated into relevant national developmentagendas.

The2030AgendaonSDGsrecognizesthateradicatingpovertyinallitsformsanddimensions, including extreme poverty, is the greatest global challenge and anindispensable requirement for sustainable development. SDGs are presented as an“integratedandindivisible”wholethatstrikesabalancebetweenthethreedimensionsofsocial,economicandenvironmentaldevelopment.

The 2030 Agenda for Sustainable Development developed at the global levelcoincidedwiththeperiodofIndonesia’s2015-2019RPJMN.Someofthefocusesofthetwo documents are in line, among others: poverty, hunger and malnutrition, healthdevelopment, education and gender equality, efforts to reduce income inequality, andinequalities across regions. The SDGshave beenmainstreamed into theRPJMN2015-2019capturing94outof169targets,whichfurtherelaboratedintheannualgovernmentplan(RKP)2017to2019.Inaddition,SDGshavealsobeenmainstreamedintotheMid-TermRegionalDevelopmentPlan(RPJMD)andAnnualGovernmentPlanattheProvincialandDistrict/Citylevels.LocalizingSDGsinIndonesia,isareflectionofIndonesia'shighestcommitment,asitreinforcingnationalagenda.

1.2 CommitmentonImplementingtheAchievementofSDGs

Indonesia is not only committed to implement SDGs, but is determined to be apioneerandrolemodelfortheimplementationofSDGsinanefforttofosteramorejust,prosperousandamorepeacefulsociety,asamanifestationofIndonesia’sfreeandactiveforeignpolicy.The implementationof SDGs is not only very important for Indonesianpeople as reflected in the synergies betweenNawacita and SDGs, but also Indonesia'scontribution to the global community. Furthermore, SDGs are also an instrument toincreaseSouth-SouthandTriangularCooperation(SSTC)asIndonesiaiscurrentlyinthelower-middleincomecountrycategory.

EnactmentofthePresidentialDecreeNo.59of2017ontheImplementationoftheSustainableDevelopmentGoalsisthehighestcommitmentofIndonesiatoadoptSDGs.Inthedecree,PresidentofIndonesialeadstheimplementationofSDGsastheChairoftheSteeringCommittee,whereasTheMinisterofNationalDevelopmentPlanning/Headof

32

BAPPENAS is the Implementing Coordinator. The Presidential Decree emphasizes theimportance of applying an inclusive principle by involving 4 (four) participationplatforms, consist of ‘Government and Parliament’, ‘Academics and Experts’,‘Philanthropy and Business Actors’, Civil Society Organizations and Media.Implementationof"nooneisleftbehind"meanttoensureinclusivenessofthepoor,menandwomen,vulnerableanddisabilitygroups.

IndonesiahavedevelopedNationalSDGsActionPlan(RAN)2017-2019whichwasofficially launched by the Vice President in June 2018. SDGs RAN summarizes bothgovernmentandnon-stateactors'workplaninachievingSDGstargetsin2019asaninitialstep towards achieving SDGs targets in 2030. In addition, Indonesia is currentlyformulating2030Agendaroadmapthatcontainsprojectionsanalysesofkeyindicators,and show their interlinkages in pursuing the welfare of the Indonesian and worldpopulation,astheultimategoalofSDGs.

The projection analyses of SDGs indicators are also used as a reference byIndonesianGovernmentinpreparingtheTechnocraticDraftofRPJMN2020-2024.Thepreparation of SDGs RAN and Roadmap has applied inclusive, participatory andtransparencyprinciplesbyinvolvingallstakeholders.Apartfromthenationallevel,theinvolvementandroleofallstakeholdersattheregionallevelisalsostrengthenedbytheestablishment of the Regional Coordination Team (TKD) stipulated by the Governor'sDecree.Withsupportofvariousdevelopmentpartners,currently19ofthe34provincesinIndonesiahavedevelopedtheirSDGsactionplans(RAD).

Indonesia held a series of SDGs events at The 2018 Annual Meetings of theInternationalMonetaryFund(IMF)andtheWorldBankGroupinBali,including;1)thesigningoftheMemorandumofUnderstanding(MoU)betweentheMinistryofNationalDevelopmentPlanningandtheUNSustainableDevelopmentSolutionNetwork(SDSN),2)United in theDiversityFoundationonCollaboration toAccelerateTheAchievementofSustainableDevelopmentGoals, 3)Hosting theASEANLeadersGathering attendedbyASEANleaderstodiscusstheimplementationofSDGsintheASEANregionandstrengthencooperationamongASEANmembercountries,4)theASEANMinistryforumforMinisterofDevelopmentPlanningwhichamongotherthingsdiscussed localizingSDGs intothenational development agenda and 5) held a Parallel Event IMF-World Bank AnnualMeetingonLocalizingtheImplementationofSDGs:‘ActLocallyonaGlobalScale’.

Indonesia is actively being involved in the G20 forums that discuss SDGsimplementationandintheAsiaPacificForumonSustainableDevelopmenthostedbyUNESCAP. Indonesia participated in the SDGs Investment Fair (SDGI Fair) initiative,organizedbyUNDESAandUNGlobalCompactheldinNewYorkon15-17April2019.Thefair aimed to find solutions for SDGs investment gap through a dialog platform andpromotion of collaborative actions among governments, institutional investors,investment banks, infrastructure companies, financial intermediaries, export creditagenciesandotherfinancialinstitutions.Indonesiaisoneofthe6countriesreviewedbyUNDESAforhavingpromisinginvestmentplansandprojectideas,investmentgapsandprioritysectors. Indonesia’sparticipationattheSDGIFairprecededbyaCountry-levelWorkshopon“ClosingtheSDGsInvestmentGap”hostedbytheGovernmentofIndonesiaincollaborationwithUN-DESAandUNCountryTeam.Theworkshopundertakenanin-depthexaminationofcountries’investmentplansandprojects,withaviewtopresentingpotentialopportunitiesforinvestmentatthe2019SDGIFair.

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CoordinationandcooperationregardingSDGsareimplementedtogetherwiththefourparticipatoryplatforms,including:

1) TheIndonesianHouseofRepresentativeshostedaWorldParliamentaryForumonSDGs,heldtwicesince2017;

2) The involvementof SupremeAudit Institution (BPK) in INTOSAI at the globallevel,withregardtoreviewingandmonitoringtheimplementationoftheSDGs

3) ‘TheAcademicPlatform’establishedSDGscenteratuniversities,withnine(9)SDGs Centers have been established in prominent national universities,whileseveralotherarecurrentlyinpreparation;

4) ThePhilanthropy andBusiness platformhas officially launched "PhilanthropyandBusinessIndonesiafortheSDGs"andholdsbiannualPhilanthropyFestival;

5) Islamic organizations through National Islamic Zakat Institution (BAZNAS)togetherwith theMinistry ofNationalDevelopment Planning have developedandformulatedFiqhZakatforSDGs;

6) CSOs together with the Ministry of National Development Planning havedeveloped a Guideline forMulti Stakeholder Partnership (MSP) to implementSDGs;

7) UNDP,theMinistryofNationalDevelopmentPlanningtogetherwithTheTanotoFoundationestablished"TheIndonesianSDGsLeadershipAcademy"toprovidecapacitybuildingforlocalSDGstakeholdersinimplementingSDGs.

1.3 SDGsFinancing

Indonesiaalsoseeksasmuchaspossibletofindavarietyof financingsourcestofund SDGs implementation, both conventional and innovative financing schemes. Thesourcesoffinancemaycomefrom:

1. Optimization of State Revenues. State revenues of tax, excise taxes, non-taxrevenues, grants, retribution, etc. will continue to be optimized. The sources offinancing are some of the indicators under Goal 17 to ensure the means ofimplementation (MoI) of SDGs.Optimizing the tax is currently themain sourceoffinancingsince Indonesiahasbeencategorizedasa lower-middle incomecountry,makingitmoredifficulttobequalifiedforforeignaid.

2. Sources of Non-Government Financing. Indonesians have strong traditions ofgenerosity.Gallupsurvey(2016)showsthatIndonesiaisthesecondmostgenerouscountryintheworldafterMyanmar.PhilanthropicactivitiesinIndonesiashowsomeprogressmarkedbyagrowingnumberof institutionsaimedatgivingandhelpingothers, including religious-based organizations and family foundations. Socialreligiousfunds,forexamplethroughZakat,Infaq,Shadaqah,Perpuluhan,KolekteandDanaPunia,haveenormouspotential.ThepotentialofZakatinIndonesiahasreachedaroundRp213trillion/year(15billionUSD),howeveronly1.2percentorRp3trillion(214millionUSD) of the total are raised thus far. Corporate Social Responsibility(CSR)hasalsobeengrowing,estimatedin2015toreachmorethanRp12trillion(856millionUSD)peryear.CSRwillalsobemoredevelopedundertheguidanceof"ISO

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26000:GuidanceStandardonSocialResponsibility"offeringvoluntaryguidanceonsocialresponsibilitytoanyorganizationregardlessoftype,sizeorlocation.

3. Otherlegitimateandnon-bindingsources.Innovativefinancingiscurrentlybeingdeveloped to finance SDGs for example through PINA (Non-Government BudgetInvestmentFinancing),PPP(PublicPrivatePartnerships),capitalmarket(egKehatiIndex), money market instruments (green bonds), Financial Institutions (Banks,MFIs, venture capital, etc.), debt swapmechanisms, impact investingmechanisms,crowdfinance,andblendedfinance(Government,Private,Philanthropy).OneofthefinancingschemesthatcanbetakenbythecentralandregionalgovernmentsisPPPscheme.Thereare19PPPsectorsthatsupporttheachievementof9SDGsgoals,forexample, the electricity, oil and gas. Renewable energy and energy conservationsectorssupporttheachievementofGoal7.

1.4 ChallengesinImplementingSDGs

1. Indonesiastillfacesseveralchallengesinovercominggapsthatcanbeclassifiedintothree categories. First, limited access to public services including education andeconomic opportunitydue topoverty and remoteness of locations.Second, not allpublic services comply with national standards and are applied withoutdiscrimination.Third,theavailabilityofadequate,up-to-dateanddisaggregateddataandinformationasabasisforinclusivedevelopmentplanning.

2. In governance accountability, challenges are including corruption, which amongothers,isindicatedbytheIndonesianAnti-CorruptionBehaviorIndexat3.66(onascaleof5)in2018;publicinformationdisclosuredecreasedto39.29%in2017from50,38% in 2016; birth registration has not yet covered all Indonesian children,especially children from poor and vulnerable households (bottom 40%); violenceagainst children reached 38.62% for boys and 20.48% for girls (2013); and theprevalenceofwomenaged20-24yearswhowerefirstmarriedorinunionbeforeage18is12%(2015).

3. Ineducationsector,thebiggestchallengeistoimprovethequalityofteachingandlearning outcomes, strengthen the quality assurance of education to improve theservices distribution between interdepartmental and inter-regional, improveeducationgovernanceinmanagementfieldandbudgetutilization.

4. Challenges in disaster management and managing the impacts of climate changeinclude geographical factors and the characteristics of multi-disaster threats,increasedpopulationwhichpotentiallyexposedtodisasters,andthelackofdisasterpreparedness.Bigamountofcriticallandtoberestored,lackofenergydiversificationandinefficientuseofnaturalresources.Otherchallengesincludelowtaxcompliance,inadequacy of taxation human resources, and the need to increase the fixedbroadband.

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CHAPTER2 METHODOLOGYANDPROCESSFORPREPARATIONOFTHEREVIEW

Theexperiencesofformulating2017VNRisinsightfulforIndonesiatodeterminefocus, increase inclusiveness and deepend involvement of all stakeholders both theimplementers as well as target beneficiaries that include persons with disabilities indrafting the2019VNR. Inclusivenessand leavingnoonebehind in thepreparationof2019VNRare themainprinciples that are consistently applied.During the reviewallSDGs’stakeholderswhicharethegovernment,academicandexperts,philanthropistsandbusiness,aswellascivilsocietyorganizations,arerepresented.2019VNRtimelineandschedulewerealsoinformedtoallstakeholderstobetterengagethemintheprocessofformulatingtheVNR.Moreover,toensurethatallstakeholdersareprovidedthewidestpossible berth to convey their inputs to the draft of the 2019VNR, online and offlineconsultationswereundertaken.

Guided by the Presidential Decree on SDGs Implementation, Indonesia hasestablishedtheSDGsNationalCoordinatingTeamledbythePresidentoftheRepublicofIndonesia and the Minister of National Development Planning/Head of NationalDevelopment Planning Agency was appointed by the President as the NationalCoordinatorforSDGsimplementation.InthestructureSDGsNationalCoordinatingTeam,allstakeholdersarerepresentedinclusively.Byhavinganinclusivestructure,preparationand formulation processes of 2019 VNRwere carried out in amore coordinated andparticipatorymanner.

ToensurethattheprocessandanalysisoftheachievementsaswellasthechallengesofSDGsimplementationreportedinthe2019VNRareinclusiveandcredible,8(eight)mainprincipleswereimplementednamely:

1. NationalOwnershipledbytheNationalCoordinatorofSDGsimplementation.2. Carryouttheprinciplesofinclusive,participatoryandtransparenttoinvolveall

stakeholders.3. Examineachievement the of theSDGsGoalandTargetsmeasuredby thekey

indicators.4. Identifythechallenges,gapsandsuccessfactors.5. Humancentered,gendersensitiveandrespecthumanrightsespeciallythepoor

andvulnerablegroups.6. Usemechanismsthathavebeenagreedindraftingprocess.7. Usevalid,reliableandupdateddata.8. InvolvetheUNagenciesandotherinternationaldevelopmentpartners.

Indonesiareviewsandreportstheachievementofthe6(six)goalsofSDGswhicharethefocusofHLPF2019,thoseareGoal4:QualityEducation;Goal8:DecentWorkandEconomicGrowth;Goal10:ReducingInequality;Goal13:ClimateChange;Goal16:Peace,JusticeandStrongInstitution;andtheGoal17:PartnershiptoachieveGoals.Besidesinthe 2019 VNR, Indonesia also reports the progress of key indicators of remaining 11(eleven)goalsofSDGs.Therefore,the2019VNRforIndonesiaisacompletepictureofourachievementinimplementingSDGsinclusively.

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Progressofeachgoalisexaminedbasedonthedatatrend2010-2018.Thedatausedare fromsurveysandcensusesconductedbyStatistic Indonesiaandsurveyaswellasofficial reports from technical Ministries/Agencies, research institutions, NGOs anduniversities. To analyse the SDGs achievement and program effectiveness in ensuring‘leave no one behind’ principle is implemented, disaggregated data is also used. Theattempt,however,isnotfullysuccessfulsincenotallavailabledataonSDGs’indicatorscouldbedisaggregatedbasedondisabilities.To improve thedataavailability,StatisticIndonesiahas started to revise thequestionnaires of various surveys and censuses toaccommodateSDGsindicators.

In detail the formulation process of the 2019VNR carried out in several stages,startedwith a coordinationmeeting chairedby theMinister ofNationalDevelopmentPlanning/Head of National Development Planning Agency and was attended by themembersofNationalCoordinationTeamofSDGsImplementation.Themeetingobjectivewas to obtain commitment of all stakeholders to support and participate in theformulationprocessofthe2019VNR.

Following up on the kick-off meeting, serial meetings were conducted with theStatistics Indonesia and the SDGs Working Group and Sub-Working Group to obtainrelevantandupdateddataanddevelopingthefirstdraftoftheVNRconsecutively.Afterthat, the first draft of the VNR was published online for consultation through theIndonesianSDGswebsiteande-mailblaststoallstakeholders,inwhichthestakeholdersare asked to give inputs and remarks on the first draft in 1 week. Subsequently, therelevantinputswereaccommodatedintheseconddraft.ThisseconddraftwasdiscussedinameetingledbytheMinisterofNationalDevelopmentPlanningandparticipatedbyallstakeholderstoobtainmoreinputsandprincipals’endorsement.Basedontheresultsofthe meeting, a final report is formulated and submitted officially by the NationalCoordinatorofSDGsImplementationtotheMinisterofForeignAffairs,tothenbesenttotheECOSOCbasedontheofficialscheduleoftheUN.

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CHAPTER3 POLICYANDENABLINGENVIRONMENT

3.1 CreatingOwnershipoftheSDGs

Since Indonesia’s first VNR report in July 2017, SDGs implementation isunderpinned by a strong joint ownership by the government and non-governmentorganizations. This joint ownership is formalized through the issuance of PresidentialDecreeNo.59Year2017onAchievingtheSustainableDevelopmentGoalsonJuly4,2017.TheDecreeisamanifestationofIndonesia’shighestcommitmenttoactivelyengagethefourparticipatoryplatformsintheprocessofplanning,implementingandmonitoringaswell as evaluating SDGs, namely National and Subnational governments, Civil SocietyOrganizationsandMedia,PhilanthropyandBusiness,AcademicsandExperts.

The joint ownership ofSDGs implementation inIndonesia is evidenced by theestablishment of nine (9) SDGsCenters namely, University ofPadjajaran,UniversityofJember,University of Mataram,University of Hasanuddin,UniversityofBengkulu,BandungInstitute of Technology (ITB),

BogorAgriculturalInstitute(IPB),UniversityofIndonesia(UI),andIndonesia’sBankingDevelopment Institute (LPPI). The commitment of the universities to establish SDGsstudiesandresearchcentersisthemanifestationofthedesiretoprovideevidence-basedsupport for policies by taking advantage of the relevant universities’ strengths. TheseuniversitiesareexpectedtoworkwithandfacilitatethelocalgovernmentindevelopingtheirrespectiveSubnationalActionPlans(RencanaAksiDaerah-RAD).

PhilanthropyandBusinessstakeholders,asoneoftheactiveparticipatoryplatformsatthenationallevel,haveestablishedthePhilanthropyandBusinessPlatformforSDGs(Filantropi dan Bisnis Indonesia - FBI4SDGs). Currently, membership in this Platformcomprises of 15 associations representing about 1500 Indonesian foundations andcorporations. The members of the FBI4SDGs Platform include, Filantropi Indonesia -Indonesian Philanthropy Association (FI), UN Global Compact – Indonesian Network(IGCN), Partnership for Sustainable Community (CCPHI), Indonesian Chamber ofCommerce(KADIN),IndonesianBusinessCoalitionforSustainableDevelopment(IBCSD),Indonesian CSR Society (ICSRS), Sun Business Network (SBN), Corporate Forum forCommunity Development (CFCD), Partnership for Indonesian Sustainable Agriculture(PISAgro),IndonesianBusinessLink(IBL)andtheAssociationofStateOwnedBusiness,APINDO(TheEmployers’AssociationofIndonesia),IMA(IndonesianMiningAssociation),SKMigasandCSRForum.

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Community organizations, particularlyCivilSocietyOrganizations(CSOs),playtheirroles in the participatory platform as thecounterpart andpartner of the governmentat every stage of SDGs implementation. InIndonesia, there are almost four hundredthousands of CSOs that work both at thenational and subnational levels. Notably,youth and disability organizations are veryactive in engagement and dissemination ofSDGs awareness to their peers andcommunities. Their engagement is alsoreflected in the process of developing andreviewingthe2019VNR.

From the outset, the IndonesianParliament has been active in promoting SDGs by organizing regularly the WorldParliamentaryForum(WFP)onSustainableDevelopment(since2017)andengaginginSDGsdiscussions at both the regional and global context. TheParliamentaryBody forInter-ParliamentaryCooperation(BKSAP)establishedintheIndonesianParliamenthasplayedakeyroleinenhancingcooperationandcoordinationbetweenparliamentandthegovernment (represented by theMinistry ofNationalDevelopment Planning/NationalDevelopmentPlanningAgency).Inpreparingthe2019VNR,BKSAPwasalsoconsultedregularlyby thegovernment.BKSAPhascarriedoutseveralactivities in fosteringanddevelopingSDGengagementandcooperationintheinter-parliamentarycontext,aswellaswithininternationalorganizationsthatconveneparliamentarybodiesand/orotherlegislative bodies. BKSAP also regularly conveys inputs and recommendations toParliament regarding the legislation, budgeting, and supervision of SDGs. Hence, thesupportoftheIndonesianParliamentiscrucialintheplanning,budgetingandmonitoringofSDGsimplementationinIndonesia.

AnotherstateinstitutionthatplaysacrucialroleinSDGsistheSupremeAuditBoard(BadanPemeriksaKeuangan-BPK).AsamemberofINTOSAI(InternationalOrganizationofSupremeAuditInstitutions),theIndonesianSupremeAuditBoardhascommittedtomonitor and audit the whole SDGs process, from preparation to implementation,including evaluating the achievements of targets set in the National and SubnationalActionPlans.Their involvementhas apositive effect on government SDGpolicies, thestrongmonitoringconductedby theSupremeAuditBoardcompels thegovernment todevelop more targeted programs, enhances discipline in implementation, as well asensurethatnooneisleftbehind.

Box1.TheRoleofIndonesian’sSupremeAuditInstitution(SAI)inKeeping

theSDGs’ImplementationonTracktoMeettheGoalsin2030.

TheAuditBoardoftheRepublicofIndonesia(BadanPemeriksaKeuangan,BPK)hasconductedthepreparednessauditof theSDGs implementation.Thepreparednessaudit focusedon theextentofGovernment’seffortintheadaptationprocessoftheGlobalAgendaintothenationalcontext,theidentificationandfulfilmentoftheresourcesandcapacities,andtheestablishment

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offollow-up,monitoringandreviewmechanismsincethefirstVNRofIndonesiawassubmittedin2017bytheGovernmentofIndonesia(GoI).

IntheauditofSDGsPreparedness,BPKencouragesGoItoacceleratetheestablishmentofonedata regulation. The regulation will lead to resources efficiency in conducting a statisticalsurvey among stakeholder for creating sufficient data disaggregation for the 40% lowestincomeatthesub-nationallevel.TheGoIhasacceptedtherecommendationandtheefforttofollow-up the recommendation has become a concern at the presidential level. Theestablishmentofdatadisaggregationfor40%ofthelowestincome,couldbeaconcernaswellat theglobal level, to ensure thepolicy formulation that follows theprincipleofnoone leftbehind.

In line with the preparation of thesecond VNR in Juli 2019, BPK iscurrently conducting PerformanceAudit on the effectiveness of the SDGsimplementation.TheperformanceauditmainobjectivesaretoassessthepolicydesignandtheimplementationofSDGsinitsfirstperiodfrom2015to2019.Theperformance audit will also giverecommendationforthesucceedingSDGsimplementationplan.Thepolicydesignfocusesondataintegrityandcoherence,andthemonitoringandreportingsystem.TheimplementationofSDGs focuses on the effectiveness of GoI programs and activities in achieving SDGs. Inconductingtheaudit,BPKassessesthegovernment’sprogramoractivitiesimplementationtoensurenotonlytheextentinwhichtheGoIachievingthetargetsorgoalsbutalsotheintendedpeople,particularlythepoor,haveequalbenefitsfromtheprogramoractivitiestoensurenooneleftbehind.BPKalsoutilizesasoftware,namedGIS(GeographicInformationSystem),asanaudittooltocapture,store,manipulate,analyze,manage,andpresentspatialorgeographicdatabasedonauditqueries.TheGISanalysiswillprovidethemappingofresourcesallocationandvisualizetheresult.

Toensure the achievementof SDGs in the long-term,BPKhasbeendevelopingContinuousComprehensiveandMulti-perspectiveAuditApproachtoprovideindependentoversightonthespecificSDGgoalsortarget.Asadditiontotheabove,inthefuture,theimplementationofSDGswill be audited in line with BPK regular/routine audit. Through audit, BPK will ensure allgovernment institutions that have programs/activities linked to implementation of SDGsachieve their intended target or outputs. The long-term strategic perspective of SDGs auditshouldbeabletocapturetheimplementationoftheSDGSasawholeofGovernmentinvolvingsectorandgovernmentlevel.

(Source:BPK)

Inanefforttofurtherenhanceandcatalyzewidermulti-stakeholdercooperation,theMinistryofNationalDevelopmentPlanning/NationalDevelopmentPlanningAgency,supportedbytheGermangovernment(FederalMinistryofEconomicCooperationandDevelopment-BMZandGermanDevelopmentAgency-GIZ),developedaGuidelineforMulti-stakeholdersPartnership (MSP) thatprovidesapractical framework to improvepartnerships between the government and non-government organizations in SDGsimplementationatthenationalandsubnationallevels.Theguidelineidentifiesthestagesthatmustbeimplementedtoproducearesults-orientedmultistakeholdercollaboration.These guidelines propose principles that include delineation of respective duties and

TheuseofGIStochoosetheauditsampleforsuspectedleftbehind

village.

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responsibilities, comprising elements of planning, identified sources of funding,implementationandmonitoring, aswell as review for thepurposesof replicationanddevelopment.

3.2 IntegratingSDGsintoNationalDevelopmentPlanning

ForIndonesia,implementingthenationaldevelopmentagendaissynonymouswithimplementing SDGs. The Government has shown strong commitment and taken earlyactions, including linkingmostofSDGs targetsand indicators to theNationalMidtermDevelopmentPlan(RJPMN),specificallytheRPJMN2015-2019.ThisalignmentisfurtheraffirmedinPresidentialDecreeNo.59/2017containingtheformulationofSDGstargetsin the development planning document. There are 94 SDGs targets have beenmainstreamedin2015-2019RPJMN(Table1),andintegratedintotheGovernmentWorkPlan (RKP)with its associatedbudget.This commitment continues tobepursuedandstrengthenedbymainstreamingotherSDGstargetsinthe2020-2024NationalMediumTermDevelopmentPlan.

Table1.AlignmentofSDGsGlobalandNationalTargets

SDGs-aligned development planning is also implemented at subnational levelthroughtheformulationofsubnationaldevelopmentandactionplans.In2018,asaresultofsimultaneouselectionsin17outof34provincesand100outof514districts/cities,117newsubnationaldevelopmentplansneededtobedrafted.Assuch,mainstreamingSDGsatthenationallevelisexpectedtohaveareplicationeffectonthedevelopmentofnewRegionalMidtermDevelopmentPlansorRencanaPembangunanJangkaMenengahDaerah/RPMJD (see Box 1). The Ministry of National Development Planning as thecoordinatorofSDGsimplementationatnationallevelandnationaldevelopmentplanninghas called upon regional development planning agencies (BAPPEDA) to oversee thepreparationofRPJMDdocumentsandensurethatSDGsaremainstreamed.BappenasalsohopesthatregionswillreplicateSDGmainstreamingSDGsinstandarizingindicators.

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Box2.IntegrationofSDGsintothe2018-2023RPJMDofNTTProvince

The 2018-2023 RPJMD of East Nusa Tenggara Province (NTT) provincewas preparedfromJuly2018toMarch2019bytheappointedTransitionTeam,inlinewiththeVisionandMissionoftheincomingGovernorandDeputyGovernor,TheTransitionTeambeganworking immediately after the determination of the official announcement of regionalelections outcome. The aim of Transition Team formation was to accelerate thepreparation of the new RPJMD. The Transition Team consisted of government,international and local NGOs, academics and private sectors actors. Members of theTransition Team oversaw the development process of the SDGs action plan and wereaskedtoprovideinputregardingthealignmentoftheGovernor'smissionstatementwithSDGs.Thisworkwassubsequentlyarticulatedinitsownsub-chapterinthedevelopmentplan.

SDGs indicators that aremost relevant toNTT's regionaldevelopmentpriorities in therelevant 5-year period were applied in the RPJMD. SDGs indicators underlie theformulation of chapters on Strategy, PolicyDirection, RegionalDevelopment ProgramsandchapteronDevelopmentFundingFrameworksandRegionalOrganizationalDevicesPrograms.InthelistofRegionalDevelopmentPrograms,informationaboutdevelopmentprogramindicatorsalsoincludedSDGsIndicators.

DiscussionsofindicatorsrelevanttoNTT'sregionaldevelopmentprioritieswerecarriedoutopenlyat theTransitionTeammeeting.Teammemberswereaskedto identifyandmap the SDGs Indicators relevant to the draft Regional Development Program inaccordance with the elected Governor's Mission. Furthermore, the Team discussedwhethertoadoptormakeadjustmentstotheSDGsindicatorsaccordingtotheneedsoftherelateddevelopmentprogram.Fromthisprocess,itwasdiscoveredthatcrucialfactorsaffectingtheintegrationofSDGsindicatorswastheavailabilityofdata.

SDGsindicatorsusedinthe2018-2023RPJMDofNTTProvinceincluded:dietarypatterns,water source access for homes; slum rehabilitation; creating habitable homes forresidents; watershed management; hazardous and toxic material waste management;expandingforestcoverarea;DisasterRiskReduction(DRR)-preparednessatdistrictlevel;householdwatersupplies;urbandevelopment;industrialandsmallislanddevelopment;additional percentage of houses with lighting from electricity; addition of a mix ofrenewable energy sources; teen and adult reading and writing skills; ratio of healthworkers improvement;maternalmortality;under-fivemortality; infantmortality;TotalFertilityRate (TFR);useof contraceptivemethods (CPR); reduction inunmetNeed forhealthservices;reducingthepercentageofchildrenunderfivewithnutritionalproblems,including stunting, underweight, andwasting; increased coverage of internet services;AntiCorruptionBehaviorIndex.

ThepreliminarydraftofRPJMDunderwentpublicconsultationandtheformalprovincialconsultative process. The development plan was subsequently issued in the form ofRegional RegulationNo. 4 Year 2019 concerningRegionalMedium-TermDevelopment

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Plan (RPJMD) 2018-2023 of East Nusa Tenggara (NTT) at the Provincial Parliament(DPRD)Plenarymeeting.

(Source:NTTProvinceSDGsSecretariat).

EffortstorealizeandoperationalizeSDGsmainstreamingindevelopmentplanningis includedintheNationalActionPlan(RAN)andRegionalActionPlan(RAD)ofSDGs.BasedonPresidentialDecreeNumber59/2017,aRANshallbeestablishednolaterthan6(six)monthsandRADshallbeestablishednolaterthan12(twelve)monthaftertheissuanceofpresidentialdecree.BothRANandRADhavethesameperiodastheRPJMNandRPJMDperiodsof fiveyears,butIndonesia's firstRANSDGshasaperiodof2017-2019 which was launched in July 2018 as stipulated by the Minister of NationalDevelopment Planning Regulation No. 7/2018 on Coordination, Planning, Monitoring,Evaluation, and Reporting on the Implementation of Sustainable Development Goals,whichinitsannexcontainsRANSDGs.Thusfar,19RADdocumentsof19provinceswereformalizedbytheGovernorissuedregulations,howevertherearestill15otherprovincesthatarestillintheprocessofcompletingtheirRAD.

3.3 IntegrationoftheSocial,EconomicandEnvironmentalDimensions

ImplementationofNationalLongTermDevelopmentPlan (RPJPN2005-2025) isdividedinto4(four)stagesof5-yearMediumTermDevelopmentPlans(RPJMN),andthecurrentGovernmentisenteringthefinalstageofRPJPN,whichisRPJMN2020-2024.TheobjectiveofthefourthRPJMN2020-2024isalignedwithSDGsbycontainingthefour(4)pillars which are the main focus underlining RPJPN 2005-2025, namely: (1) Strongpoliticalandlegalinstitutions;(2)Improvingcommunitywelfare;(3)Developmentofanadvancedandrobusteconomicstructure;(4)Achievingbiodiversitypreservation.

RPJMN 2020 - 2024 is implemented with a Holistic, Integrative, Thematic, andSpatialapproach(HITS).Holisticrelatestoacomprehensiveapproachfromupstreamtodownstream;Integrativerelatestointegrationintermsofthepartiesimplementingandfundingsources;ThematicrelatestotheemphasisorfocusofplanninguptothePriorityProgram;andSpatial involves the linkageof location function fromvarious integratedactivities.

With the alignment ofRPJMNwith SDGs, the development dimension of SDGs isadoptedasthemainprinciplesinIndonesia'sdevelopment,namelythesocial,economic,environmentaldimensionsandalsoemphasizestheadditionofapillarofjusticeandgoodgovernance.Thefourpillarsareinterlinkedtoeachotherandarerelatedtoseventeen(17)Goalswhicharedelineatedasfollows:TheSocialDevelopmentPillarconsistsofGoal1,2,3,4,and5;theEconomicDevelopmentPillarconsistsofGoal7,8,9,10,and17;theEnvironmentalDevelopmentPillar consistsofObjectives6,11,12,13,14,and15; theJusticeandGovernanceDevelopmentPillarconsistsofGoal16.

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Themainfocus inthisyear’sVNRreporting isthe interlinkagesbetween6goals,namelyGoal4 (SocialDevelopmentPillar),Goal8,10, and17 (EconomicDevelopmentPillar),Goal13(EnvironmentalDevelopmentPillar),andGoal16(LawandGovernanceDevelopmentPillar).ThestudyconductedbytheInstitutefor GlobalEnvironmental Strategies (Zhou & Moinuddin,2017)showsthatthethe6goalsareinterrelatedandaredirectlyrelatedwitheachother,withtheexception of Goal 10 and Goal 13. Currently,Indonesia aims to establish a conducivedevelopment policy framework underpinned bysafe and peaceful social conditions characterizedbylegalcertainty.Inlinewiththeseefforts,thereisalso an increase in the inclusive aspect ofdevelopment implementation by involvingmulti-stakeholders participation and variouscollaborations among relevant parties at thenational and international level. These aspectshave become the main drivers in advancingprogress in inclusive development and realizingIndonesia’seconomicgrowthtoregisteraboveG20andglobalaverages.

Indonesia’s economic growth has increased employment opportunities with thecreation of nearly 10 million jobs in 2018, as well as improved access to education,increased gender parity index and reduced inequality gap that nearly reach score 1.Simultaneously,Indonesiaisabletoreducegreenhousegas(GHG)emissionsandcarryout disaster risk reduction (DRR) efforts. A notable achievement of SDGs targets isreduced inequalities marked by the Gini Coefficient decline to 0.384 in 2018. Theseaforementioned figures demonstrated the interlinked nature of development pillars(social,economic,environmental, legalandgovernance) inIndonesiaandthesupportsthecontentionthataholisticapproachisneededtoachieveSDGtargets.

Meanwhile,thestudyofinterlinkagesbetweenSDGstargetshavedemonstratedthatTarget17.18(enhancecapacitybuildingsupport forhighqualitydata)hasthehighestdegreeofinterlinkageswithothertargets.Asthetargetisrelatedwithall6maingoalsofVNR2019,capacityplanning,deliberationandthequalityofdevelopmentdataarethemostimportantfactorsintheimplementationandachievementofdevelopmenttargets.

Alignedwith theParisAgreement, anotherpolicy integrated in thedevelopmentdimensionisthemainstreamingoflowcarbondevelopmentintheNationalMediumTermDevelopmentPlan(RPJMN).Assuch,lowcarbondevelopment(Goal13)willrequirethesupportofeffortsconductedingovernance(Goal16)andpartnerships(Goal17)withtherelevant stakeholders at national and international level. In its implementation, lowcarbondevelopmentaimsto increaserenewableenergyandenergyefficiencythroughinnovations, which in turn will have a positive effect on employment opportunities,economicgrowth(Goal8)andeducationaccessatalllevels(Goal4).AchievingGoal13willhavepositiveeffectsoninequalityinIndonesia.

Figure1.Interlingkagesbetween6goalsinVNR2019

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3.4 ApplyingThePrincipleofNoOneLeftBehind

Indonesia's efforts to ensure leaving no one behind is emphasizes the use ofdisaggregateddatainorderfordevelopmentplanningtoreachthetargetedbeneficiariessuchasthedevelopmentofaUnifiedDatabase(BDT).Additionally,theCentralBureauofStatistics(BPS)alsoseekstousesmallareaestimationtoachievethesameaim.

VulnerablegroupsareidentifiedbyusingBDTeventhoughthedatacollectedstillrefers to2015.Forupdateddata, regionalgovernmentshavebegun toundertakenewdata collection efforts to clarify targetedbeneficiaries. The2020PopulationCensus isexpectedtoprovidethelatestdataonthesevulnerablegroups.

In 2017, Indonesia reported the progress in Goal 1 that includes programs andactivitiestargetingvulnerableandpoorgroups.Socialsecurityprogramsforvulnerableandpoorgroupscontinue tobe implemented, including theNationalHealth Insurance(JKN),educationandfinancialinclusiontoempowerwomen.

Civil society groups also participated at the grassroots levels to complementgovernmentprogramsinreachingtargetedbeneficiaries.(seeBox2)

Box3.CriticalWomenBorninaGrassrootsCommunity

ACollaborationofGovernmentandCivilSocietyOrganizations

FortheGovernmentofNorthLombokDistrict inWestNusaTenggaraProvince, findingandempoweringwomeninconcretewaysisinitiallyadifficultthingtodo,especiallyforgrassrootswomen.However,sincetheexistenceofSekolahPerempuan(Women'sSchool)whichwasinitiatedandoverseenbyKAPALPerempuanhavebuiltcriticalawarenessofwomenatthelowerlevels,thingsthatwereinitiallydifficultbecameatrulyconcreteworkandcouldbeimplementedjointlybetweenthegovernment,civilsocietyorganizationsandthecommunitydirectly.

HousewiveswhoarethemajorityofSekolahPerempuan’sparticipantsgettinginformaleducation include gaining various knowledge and information on gender equality,sexuality, reproductive health, mapping women's issues, women's leadership,organizationstrengthening,women'seconomystrengthening,andadvocacy.

"ThemethodofempoweringwomenthroughSekolahPerempuanhavecreatedgrassrootswomenwhodidnothavetheopportunitytopursuerelativelyadequateeducation,wereable to fight forequality in thedivisionofhousehold labor.Theyoversee thedomesticviolencecases,criticizingpoorpublicservices”(YuniKurniatiMaesarah,SecretaryoftheRegional Development Planning Agency (BAPPEDA) North Lombok District, Monday,04/29/2019)

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Since attending the SekolahPerempuan,waysofthinkingofwomenin the village have changed. They arecourageous and confident in voicingtheir opinions at the developmentconsultative forum in the village, sub-district and even District levelregarding minitoring and controllinggovernmentprograms.Someexamplesof the Perembang School studentsactive role are monitoring theImplementation of National HealthInsurance for Recipient Beneficiaries

(JKN-PBI)inNorthLombokandEastJakartaDistrict,directlyinvolvedinthepreparationof Village Government Work Plans in Pangkajene Islands District, overseeing theprocurement of Power Plants Surya (PLTS) on Sabangko Island, Pangkajene IslandsDistrict.

ConclusiveevidenceoftheroleofSekolahPerempuanencouragesEastLombokandNorthLombokDistrictGovernmentstoreplicateWomen'sSchoolsandincorporatetheschoolprograms into the 2016-2021 Regional Medium-Term Development Plan (RPJMD) forwhich the implementationof female schools in villages arebudgeted throughRegionalDevelopment Work Plans (RKPD). Starting in 2019, East Lombok District replicatedWomen'sSchoolsin10villagesintegratedwithstuntingpreventionprograms.InNorthLombok District, the Sekolah Perempuan program is included in a strategic target toimprove the quality of life and children which in 2018 was held in 15 villages withallocationofRp700millionandallocationfor19targetedvillagesin2019isRp1.3billion

ThereplicationofSekolahPerempuanbytheDistrictgovernmentisacontinuationofaninitial initiative by KAPAL Perempuan Institute (the Women's Alternative EducationCircle) and Partner Resources Development Institute of West Nusa Tenggara (NTB)supported byMAMPU program (Australia-Indonesia Partnership for Gender Equality).Since itwas started in 2000 byKAPALPerempuan Institute, Sekolah Perempuan haveexistedin58villagesandcollaboratedwithlocalpartnersintheprovincesofDKIJakarta,with Pambangkik Batang Tarandam in West Sumatra Province, with KelompokPerempuan Sumber-Sumber Kehidupan in East Java Province, with Yayasan KajianPemberdayaan Masyarakat in South Sulawesi Province, with Lembaga PemberdayaanSumberDayaMitrainWestNusaTenggaraProvinceandwithPondokPERGERAKANinEast Nusa Tenggara Province. Sekolah Perempuan are then replicated by localgovernments, which until 2018 have 54 villages replicating Sekolah Perempuan. Inaddition toNorthLombokandEastLombok,SekolahPerempuanarealsoreplicated inPangkajeneIslandsDistrict,SouthSulawasi,andGresik,EastJava.

“Weareincreasinglyoptimisticaboutwomen,becausewomenhavepowereventhoughsurroundedwith issues. This proves that building from the periphery can be done bywomenwho had no place since they are considered as nobody"Misiyah - Director ofKAPALPerempuan.

(Source:KapalPerempuanInstituteandKompasNewsletter)

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Box4.ForumofNon-StateActors(NSAForum)GorontaloProvince

In the year 2000, Gorontalo officially gained provincial status when North Sulawesiprovincewasdividedintwoafterthe1998ReformationtookplaceinIndonesia.Evenso,as a relatively young province, Gorontalo has pursued its development quickly withHumanDevelopmentIndex(HDI)ranked28among34provincesin2018.

ThisachievementcannotbeseparatedfromthecommitmentoftheGorontaloGovernmentto continue building and ensuring that no one is left behind. The effortsmade by theGorontalo government include involving non-governmental organisations such as theprivatesectorinaCSRForumandestablishingNon-StateActorsForum(NSAForum)inJuly2018consistofnon-governmentalinstitutionsengagedintheenvironment,academicand religious fields. Purpose of the establishment of NSA Forum is that the programsimplementedbystakeholderscanbecoordinatedwitheachother,openupopportunitiesforcooperationbetweengovernmentandnon-governmentinstitutionsinsupportingtheimplementationofregionaldevelopmentprograms.

Theconcretemanifestationof thecollaborationcarriedoutbymembersofNSAForumwithGorontalo governmentwas the launchingofGorontaloProvinceRADSDGswhichcoincidedwiththeLimbotoLakeCampaigninSeptember2018.Inadditiontocampaigningfor environmental conservation around Lake Limboto, SDGs were introduced to thecommunity. Another form of collaboration between government and NSA Forum waseconomicstrengtheningandempowermentoftheWomen'sGroupsintheVillageinitiatedbyGorontaloWIRE-G,GorontaloProvincialSocialServiceandsupportedbyBAPPEDAofGorontaloProvince.

(Source:GorontaloProvinceSDGsSecretariat)

The involvement of groups representing peoplewith disabilities inmeeting anddiscussing formulation of guidelines formonitoring and evaluation is also part of thegovernment'seffortstoreachvulnerablegroupsinordertogetconstructiveinput.

3.5 InstitutionalFramework

PresidentialDecreeno.59Year2017servesasthelegalbasisfortheestablishmentofaSDGsNationalCoordinationTeam,comprisingtheSteeringCommittee,ImplementingTeam,TechnicalWorkingGroup,andExpertTeam.TheNationalCoordinationTeamischaired by the President and the Minister of National Development Planning is theCoordinator of SDGs tasked with coordinating planning, implementation, monitoring,evaluation,reportingatthenationalandregionallevel,aswellasfundingsourcesfromthegovernmentandotherlegalandnon-bindingsources.

MinisterofNationalDevelopmentPlanningRegulationNumberno.7Year2018onCoordination,Planning,Monitoring,Evaluation,andReportingoftheImplementationofSustainable Development Goals serves as the legal basis for this coordination, andMinisterofNationalDevelopmentPlanningDecreeno.127Year2018onEstablishment

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of Implementation Team, Technical Working Group, and Expert Team of SustainableDevelopmentGoals2017-2019 is the legal basis for the ImplementationTeamand itsmembers to carry out the tasks. Members of the Implementation Team, TechnicalWorkingGroupandSub-WorkingGroupconsistofrepresentativesfromthegovernment,philanthropyandprivatesector,civilsocietyorganizations,academicsandexperts.Theselection of non-government representatives in National Coordination Team is fullydeterminedbythenon-governmentalcoalitionitself.

InsupportingSDGs,theinvolvementofNon-GovernmentalOrganizations(NGOs)isnotlimitedtomembersofNationalandRegionalCoordinationTeams(TKN/D).However,the largeNGO community necessitates the nomination of representatives to speak onbehalfofsharedinterestsandissues,basedontheselectionprocessdrivenbytheNGOcommunityitself.

Figure2.SDGsNationalCoordinationTeam

Replicating thenational level, the involvementandroleofall stakeholdersat theregional level isstrengthenedbytheestablishmentoftheRegionalCoordinationTeam(TKD)formalizedthroughaGovernor'sDecree.Thereare19TKDsattheregionalleveloutofthe34provincesofIndonesia.

Thedivisionofresponsibilitiesbetweenthenationalandregionallevelisregulatedin Presidential Decree no. 59 Year 2017 on Duty and Authority of theMinistries/GovernmentInstitutions.Inthisregard,governorsanddistrictheads/mayorsare also required to involve the fourparticipatoryplatforms in implementingSDGs inaccordancewiththeirrespectivemandatesandareas.

In preparing this VNR report, the Ministry of National Development Planningappointed the relevant government coordinators of technicalworking group and sub-workinggroups.TheVNRprocessunderwentin-depthdiscussionsinvolvingmembersofrelevantworking groupand sub-working groups that comprise of state andnon-statestakeholders.Italsoreceivedsupportfromdevelopmentpartners,includingrelevantUNagencies,aswellasthegovernmentsofAustralia,JapanandGermany.

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CHAPTER4 PROGRESSONGOALSANDTARGETS

4.1 VoluntaryNationalReviews(VNR)2019

4.1.1 Goal4.QualityEducation

ThediscussionofGoal4.QualityEducationwillcover4mainissues,namely:(1)FulfillingaccesstoeducationwhichconsistsofindicatorsofGrossEnrollmentRateatthePrimary school/Madrasah Ibtidaiah (islamic primary school)/equivalent level; juniorsecondary school/Madrasah Tsanawiah (Islamic Junior Secondary School/equivalent,senior secondary school/vocational secondary school/Madrasah Aliah (Islamic SeniorSecondary School)/equivalent level and tertiary level; (2) Improving the quality ofteachingandlearningconsistingof indicatorsproportionofschoolswithaccessto:(a)electricity(b) internet for teachingpurposes, (c)computers for teachingpurposes, (d)adequateinfrastructureandmaterialsfordisabledstudents,(e)cleanwater,(f)single-sexbasicsanitationfacilities,(g)handwashingfacilities(consistingofwater,sanitationand hygiene for all/WASH); Percentage of kindergarten, elementary, junior high, highschool,vocationalandextraordinaryschool(PLB)withteacherswitheducatorcertificate;andProportionofchildrenandyoungpeople:(a)ingrade4(b)attheendofprimary;and(c)attheendoflowersecondaryachievingatleastaminimumproficiencylevelin(i)reading and (ii) mathematics (3) Vocational education and skills for improvedemploymentconsistingofindicatorsofParticipationrateofyouthandadultsinformaland non-formal education and training in the previous 12 months,by sex and (4)Strengthening1yearpre-primaryeducationconsistingoftheindicatorparticipationratein organized learning (one year before the official primary entry age), by sex. Thediscussionincludesananalysisoftheprogressofachievements;policies,strategiesandefforts taken; good practices; challenges and problems; and strengthening andimprovementforthefuture.

EducationisawaytorealizethenobleidealsofthefoundingfathersofthenationthatarecontainedinthePreambleofthe1945Constitution,namelytoeducatethenationandpromotepublicwelfare.Developmentofeducationisamajorfactorintheefforttorealizequalityhumanresourceswithcompetencesandexpertisethatarecompetitiveandhave good character. Educational development aims to ensure equitable access toeducation and increased quality, relevance and educational competitiveness. Thefulfillmentofeducationservicesisexpectedtoincreasethelevelofeducationandreducethegapinthelevelofeducationbetweenpeoplegroupsandregions.Increasingqualityeducationserviceswillultimatelyproducegraduateswithcompetencies,expertiseandcharacterthatareappropriateandencouragenationaldevelopmentasawhole.

The development of Indonesian education shows steady improvement, this isillustratedby the continuing increase in the level of educationof thepopulation.ThisSDG4achievementisinseparablefromthesupportofthepolicydirectiveandstrategiesimplemented in the Medium-Term National Development Plan (RPJMN) 2015-2019 ,including: (1) implementation of 12Years Compulsory education by guaranteeing therightofallIndonesianchildrentobeabletocompletebasiceducationandimproveaccess

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toqualitysecondaryeducationbyprovidingassistanceforchildrenfrompoorfamiliestobe able to participate in the Indonesia Smart Program; (2) Improving the quality oflearning, through strengthening the quality assurance of education services,strengthening the curriculum and its implementation; and strengthening educationassessment system to be more comprehensive and credible; (3) Improving teachermanagement and placement, aswell as teacher’swelfare and career development forteachersintargetedareas;(4)Improvingtheaccessandqualityofpre-primaryeducation(PAUD),andencouragingtheimplementationofholistic-integrativePAUD;(5)Increasingaccess,qualityandrelevanceofeducationandtrainingofworkskills;and(6)Increasingequitableaccess,quality,relevanceandcompetitivenessoftertiaryeducation.

A. TrendAnalysis

ImprovementofAccesstoEducation

1. GrossEnrolmentRate(GER)

Indonesia has in recent years achieved improved access to education. This isexemplifiedby,amongotherthings,increaseincompletionratesofeducationathigherlevels,driveninpartbyeffortstowardensuringhigherparticipationamonglargergroupsof people. As such, education participation rates continue to experience a generallyupward trend. Indonesia hasmaintained a GER for primary education at higher than100%since2000.Further,theGERforjuniorsecondaryschoolreached91.5%in2018,signalingagoodrateofparticipationatthat level.However,thereremainsmuchworkandcoordinatedeffortsthatarenecessarytoensurethatincreaseinparticipationratesarealsoextendedtoeducationatthehighersecondaryandtertiarylevels.

Figure3.GrossEnrolmentRate,2015-2018

Source:SusenasKor,2000,2010,2015-2018

Success in equitable expansionof access to education is reflected through largernumbers of children from poorer households or low-income families receiving basiceducation services. In Indonesia, basic education refers to both primary and juniorsecondarylevelsofeducation.Throughouttheperiod2000-2018,thewealthparityindex

110.5 109.3 108.5 108.6

91.2 90.1 90.2 91.5

78.0 80.9 82.8 80.7

25.3 28.0 29.9 30.2

2015 2016 2017 2018

Primary JuniorSecondary SeniorSecondary Tertiary

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forprimaryGER,ortheratiobetweentheGERforthepoorestquintileandtherichestquintile at the primary level were maintained at close to 1. Similarly, at the juniorsecondaryeducationlevel,therehasbeenasignificantincreaseintheratiobetweentheGERforthepoorestandtherichestquintileinthelast15years(2000to2015).Theratiohas also been close to 1 between 2015 and 2018. This shows that children fromdisadvantaged familiesareable toexercise their rights toeducationandenjoysimilaropportunitiestoparticipateinbasiceducation.

Asmentionedabove,accesstobasiceducationhasbeenrelativelyequalforchildrenfromfamiliesinthepoorestandtherichestquintile.However,aconsiderableequitygapisstillobservedattheseniorsecondarylevel,aswellasanevenlargergapatthetertierylevel.Forexample,thewealthparityindexorGERratiobetweenthepoorestandrichestquintileforseniorsecondaryeducationwasobservedat0.68in2015andat0.7in2017.The ratio has not improved significantly since 2014. This points to the reality thatadolescents from underprivileged families do not participate in upper secondaryeducationattheratethatchildrenfromricherfamiliesdo.TheGERwealthparityindexfortertieryeducationpaintsamoredisconcertingpicture.TheGERratiowere0.09,0.14,and0.17fortheyears2015,2016,and2017respectively.

Figure4.UppersecondaryandTertieryGERRatiobetweenthePoorestQuintileandtheRichest

Quintile,2000-2018Source:SusenasKor2000,2010,2015-2018

Figure5.BasicEducationGERRatiobetweenthePoorestandtheRichestQuintile

Source:SusenasKor2000,2010,2015-2018

0.29 0.3 0.3 0.3 0.3 0.4 0.4 0.42 0.4 0.5 0.5 0.50.68 0.72 0.730.71

0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.05 0.1 0.1 0.1 0.1 0.09 0.14 0.170.17

-

0.20

0.40

0.60

0.80

2000 2001 2002 2003 2004 2005 2006 2010 2011 2012 2013 2014 2015 2016 2017 2018

SeniorSecondary Tertiary

1.00 1.0 1.0 1.0 1.0 1.0 1.0 0.99 1.0 1.0 1.0 1.0 1.04 1.03 1.04 1.03

0.6 0.6 0.7 0.7 0.7 0.7 0.70.84 0.8 0.9 0.9 0.9 0.97 0.98 1.011.02

-

0.20

0.40

0.60

0.80

1.00

1.20

2000 2001 2002 2003 2004 2005 2006 2010 2011 2012 2013 2014 2015 2016 2017 2018

Primary JuniorSecondary

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2. SchoolCompletionRate

A look at school completion rates contributes to an understanding of sustainedachievementsinimprovingaccesstoeducation.Schoolcompletionrateshowsnotonlytheparticipation rateof childrenandadolescent in education, but also their ability tocomplete a level of education without much delay. School completion rates for alleducationlevelhavegenerallyrisen(Figure6).Highcompletionratesareobservedforprimary and lower secondary levels, respectively at 95%and85% for the year 2018.These reiterate the general success of improved access to basic education. Themostdrasticincreaseinschoolcompletionrateisobservedforseniorsecondarylevel,withanincreaseof10%between2015and2018,from52%to62%.Thisrepresentsanincreaseintheproportionofyouthaged19–21yearswhohavecompletedseniorsecondarylevelofeducation.

Figure6.SchoolCompletionRate,2015-2018Source:SusenasKor,2000,2010,2015-2018

Achievementsineducationparticipationisalsoaresultofmoreequitableeducationaccessforbothboysandgirls.Basedonparticipationandcompletionrates,Indonesiahasachievedgenderparityineducation.Aslightgapcanbeobservedatthejuniorsecondarylevel,withadifferenceof4%betweenfemaleandmalecompletionrates.Thedifferenceincompletionratesbetweenmaleandfemaleattheprimaryandjuniorsecondarylevelis2%.

88 90 91 94 95 95

64

75 7984 85 85

38

4852

57 5862

2000 2010 2015 2016 2017 2018

Primary JuniorSecondary SeniorSecondary

Junior Senior

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Figure7.SchoolCompletionRates,byGender,2015-2018Source:SusenasKor,2015-2018

3. OutofSchoolChildren

Stiflingcontinuedimprovementsinuniversalaccesstoeducationattheprimaryandsecondarylevelistheissueofout-of-schoolchildren(OOSC).Asof2018,thereremains7.58%school-agechildren(7–18years)whoarenotinschoolornotaccessingeducationservices. This group of children include those who have never enrolled or enterededucation at any levels, have dropped out of school without completing 12 years ofeducation,orhavecompletedalevelofeducation,buthavenotprogressedtothenextlevel.WhileeffortstoexpandaccesstoeducationhavebeenabletocurbOOSCratiosforallagegroups,theOOSCratioforseniorsecondaryschoolagegroup(16–18years)issignificantlyhigh,at22%.

Figure8.Out-of-SchoolRatio,byAgeGroup,2000-2018Source:SusenasKor2000,2010,2015-2018

Adolescentsbetween16-18yearsinruralcommunitiesandthosefromthepoorestquintileareespeciallydisadvantagedandvulnerable.Theyaremostat-riskofdropping

90 92.2 94.3 93.692.9 95.7 96.3 95.9

77.481.6 82.7 82.780.8

86.1 86.8 87.3

48.655.4 56.6

60.655.759.7 58.8 63.1

0

20

40

60

80

100

120

2015 2016 2017 2018

Primary(boys)

Primary(girls)

JuniorSecondary(boys)

JuniorSecondary(girls)

SeniorSecondary(boys)

SeniorSecondary(girls)

4.76 1.98 0.63 0.71 0.67 0.79

28.8

13.88.6 8.1 7.8 6.9

50.4

33.8 30.724.7 23.9 22.8

2000 2010 2015 2016 2017 2018

7-12yo 13-15yo 16-18yo

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outandbecomingout-of-school.Accordingtothe2017socioeconomichouseholdsurvey(Susenas),themostpredominantfactorsofchildrenbecomingout-of-schoolareeconomicbarrierssuchasnotbeingabletoaffordeducationexpensesorhavingtowork,aswellassocioculturalbarriers,particularlychildmarriage.

Figure9.Out-ofSchoolRate,ByLocation,WealthQuintile,andAgeGroup,2018Source:SusenasKor2018

CurrentPolicies,Efforts,andGoodPractices

SchoolGrantPolicy:SchoolOperationalAssistance(BantuanOperasionalSekolah,orBOS).Intheeffortofimprovingandmoreequitableeducationaccess,theGovernmentofIndonesia has implemented a school grant policy through the School OperationalAssistance(BOS)fundingforallformaleducationinstitutionsatprimaryandsecondarylevels, including schools and madrasahs (islamic school). Starting in 2018, theGovernmenthasalsostartedapplyinganaffirmativepolicyfortheschoolgrantprogramthroughAffirmativeBOSgrant(BOSAfirmasi)forschoolsinthemostdisadvantagedruralareas.Inaddition,high-performingschoolsmayqualifyforAchievementBOSgrant(BOSKinerja).TheBOSgrantcanbeusedforspendingonresourcesandmaterialsthatenhancetheteachingandlearningprocess(suchas,extracurricularactivities,learningassessmentactivities,librarydevelopmentandenrichment,procurementofmediaandeqiupmentforpedagogical purposes, etc.), school management activities, teacher and educationpersonnel professional development purposes, and development or maintenance ofschool infrastructure and facilities. The Board of Teachers and School Committee areinvolvedinmanagingtheBOSgrant,expressingcommitmentstoimplementingschool-basedmanagementprinciples,andanaimtoprioritisefundingefficiency,effectiveness,accountability, and transparency.Thismechanismprovidesschoolswith the liberty todevelop the plans, management, and monitoring of programs and BOS grant whileattuningtotheconditionsandneedsoftheschools.

Educational Cash Transfer for Poor and At Risk Students Program: SmartIndonesia Card (Kartu Indonesia Pintar, or KIP). Commitments to further increaseeducationparticipationamonglargergroupsofstudentshaveledtotheestablishmentofpro-poor education policies. In 2013, the Government began implementing the Cash

3810.6

1.216.7

22.811.2

2.78.6

5.56.9

1.30.41.2

0.40.8

0 5 10 15 20 25 30 35 40

Poorest20%Richest20%

RuralUrban

NationalPoorest20%Richest20%

RuralUrban

NationalPoorest20%Richest20%

RuralUrban

National16

-18

13-1

57-

12

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TransferProgramforPoorStudents(BantuanSiswaMiskin,orBSM) in2013,with thespecificgoalofassistingpoorstudentsincoveringindirectcostsassociatedwitheductionand,assuch,enablethemtoaccesseducationservices.TheBSMaimstopreventschooldropout, attract out-of-school children to return to schooling, meet students’ needssupportingtheirlearningactivities,andgenerallyfurthertheGovernment’sCompulsoryEducation agenda. In2015, theGovernment launched the Smart IndonesiaCard (KIP)educationassistanceprogramtostrengthentheBSMprogram.KIPisaneducationalcashtransferprogramtargettingstudentsfrompoorandatriskfamilies,whoarebeneficiariesof social assistance and the FamilyWelfare Card (Kartu Keluarga Sejahtera, orKKS –ConditionalCashAssistance)andtheFamilyHopeProgram(ProgramKeluargaHarapan,orPKH).TheKIPalsotargetsorphanedchildren,childrenwithdisability,andvictimsofnaturaldisasters.Itisanational-coverageprogramreservedforschool-agechildrenfromthepoorest25per centofhouseholds.Theprogram listed20.95millioneligible childbeneficiaries,whichwasanincreasefrom11.09millionchildrencoveredin2014.

SpecialAllocationFund(SAF)forEducationInfrastructure.Asapartofeducationdecentralisation,theGovernmentestablishedintergovernmentalfiscaltransferfromtheMinistryofFinancetothelocalgovernment.Amongthisfundingreservedforeducationdevelopment is the SAF, a special allocation fund to expand 12 Years CompulsoryEducation and support district andmunicipality governments to achieve the nationalEducationMinimumServiceStandardspolicy.SAFFunding isprioritised for low-fiscaldistrictsandmunicipalitieswithloweducationparticipationrates.The2018SAFbudgetamountedtomorethanUSD635million(9.17trillionRupiah)disbursedto487districtsand municipalities across the archipelago. The Government has also establishedAffirmativeSAFtargetingequitablequalityeducationservicesindisadvantagedareasandspecialregions.ASpecialAssignmentSAFhasalsobeenestablishedfocusingonqualityimprovements of vocational education through secondary vocational schools (SMK).Regular SAF addresses mainly spending on the development and rehabilitiation ofinfrastructure and facilities. The Affirmative SAF is allocated for the development ofstudentandteacher/staffhousing,whiletheSpecialAssignmentSAFisallocatedforthedevelopment and improvements of secondary vocational school infrastructure andfacilities,aswellasdevelopmentoffacilitiesforvocationalschoolsofferingprograminpriorityorleadingsectors(suchasfoodsecurity,tourism,creativeindustry,andothers).ThroughouttheyearsSAFmanagementhasundergoneimprovements.Startingin2017,theGovernmenthasrolledoutanelectronicapplication(calledKRISNA-SAF)linkingSAFplanning to the Education Management Information System (EMIS)managed by theMinistry of Education and Culture (MoEC), toward synchronising and aligning budgetallocationwithprojectedlocalneedsonthebasisofschool-reporteddata.SAFcomponentallocationschemesarealso furtherdeveloped forschoolsofalleducation levels—pre-primary,primary,andsecondary—aswellasforspecialeducationschoolsandnonformaleducationcenters.

To fulfill the mandate of the constitution and the mandate of the law, theGovernmentofIndonesiaiscommittedtoguaranteeingthebasicrightsofallcitizenstoobtainqualityeducationwithoutdiscrimination,includingchildrenwithdisabilities.Forpeoplewithdisabilities,theGovernmenthasorganizedanInclusiveEducationProgramfor all. This Inclusive Education has the main objectives, namely: combatingdiscrimination, creating an open society, building an inclusive society, and achievingeducationforall.

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Inclusive education is intended to provide equal opportunities for all school-agechildrenregardlessoftheirsocio-cultural-economicbackgroundandphysicalandmentalconditions,sothattheydonotexperiencesocialmarginalizationandexclusion.Inclusiveeducationiscarriedoutinregularschools,sothatchildrenwithspecialneedscaninteractandsocializenaturallywiththeirpeers,whoarenormallywithoutdisabilities.

The implementation of this Inclusive Education Program is based on tworegulations, namely: (1) Minister of National Education Regulation No. 70 Year 2009concerning Inclusive Education for children with disabilities, special intelligence, andspecial talents; and (2) Minister of Research, Technology and Higher EducationRegulationNo.46Year2017concerningSpecialEducationandSpecialServiceEducation.These two regulations are actually derived from Law No. 20 of 2003 concerning theNational Education System, which mandates the government to organize inclusiveeducation,aswellasevidenceofthecommitmentoftheIndonesianGovernmenttocarryoutthe1994SamalancaDeclaration.

Box5.TheImplementationoftheGraduatesTeachinginOutermost,

FrontierandUnderdevelopedAreas(SM3T)Program

Inordertomeettheurgentneedsofteachersintheforemost,outermost,anddisadvantagedregions(3T),theIndonesiangovernmenthascarriedoutanaffirmativeprogramcalledSM3T–teachercollege’sgraduateswhoaredispatchedintoremoteareastodoteaching—since2011.TheSM3Tprogramwasdesignedtoovercometheproblemof teachershortage in thesomecountry’s regions with a one-year service period, and the participants are then grantedscholarship after the service to take the so-called Teacher Professional Education program(PPG). The SM3T is very important toprovide teacher college’s graduateswithservice experience as they have a verygoodopportunitytodevelopprofessionalattitudes and patriotism, as well as toequipthemwithsoftandsocialskillssuchas caring, empathy, and solidarity, sincetheyliveinwithdisadvantagedpeopleinthe remote areas. This program hasproduced more than 10,000 alumni (6batches) from various universitiesthroughoutIndonesia.

InadditiontobeingasolutiontotheissuesofteachershortageandequityofqualityeducationserviceinIndonesia,theimplementationoftheSM3Tprogramhasalsobeenproventobeabletoproduceteacherswhohavegoodcharacterandarereliable,sensitivetoothersandabletosurviveinvariousconditions.TocomplementtheSM3Tprogramwhichwasconsideredashort-term solution, the concept of Integrated Teacher Professional Education (PPGT) was alsocarried out by recruiting and preparing graduates of SMA / SMK from the 3T areas to beeducatedfor5yearsinselectedLPTKsandassignedtotheregionsoforiginaftertheygraduate.ThecombinationoftheSM3TandPPGTprogramsisbasedontheMajuBersamaMencerdaskanIndonesia(MBMI)program.

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Box6.Back-to-SchoolMovement(EverythingStartsfromData)/GerakanKembaliBersekolah(SemuaBerawaldariData)

The out-of-school children issue has posed a major barrier in Indonesia’s pursuit andachievementofuniversal12-yearseducation,especiallyinlightofthelargenumberofchildrenaged16-18yearswhoarestillnotinschool.OneofthemajorchallengesthattheGovernmentfaceswhile tackling this issue is the significant lack of comprehensivedata that allow for amappingofwheretheout-of-schoolchildrenarelocated,howmanythereareinanygivenarea,whotheyare,andwhatfactorsserveasobstaclesprohibitingtheirreturnandreintegrationintotheeducationsystem.

Toaddressthisissue,UNICEFhassupportedanumberofBack-to-SchoolMovements(GerakanKembaliBersekolah/GKB)atthecenterofwhichistheimplementationofaCommunityBasedDevelopment Information System (Sistem Informasi Pembangunan BerbasisMasyarakat/SIPBM)with a purpose of closing thedata gap on out-of-school children at thecommunitylevel.SIPBMisadatabasedevelopmentinitiativegatheredbycommunitymembers,on community members and are available for use by community members as well as thegovernment toward addressing OOSC issue in their community. SIPBM holdsby-name, by-addressinformationonout-of-schoolchildren,andassuchcanideallyserveasevidenceandpointsofreferenceforlocalgovernmentatvariouslevels—District/municipality,district,andvillage—to support their educational planning, and establishment of high-impact educationpolicies and accurate strategies toward expanding education access and participation to allchildren.

TheSIPBM implementationhas resulted in thousandsofout-of-school childrenreturning toschoolingboththroughformalandnon-formaleducationasapartofvariousBack-to-SchoolMovements. In Mamuju District of West Sulawesi alone, the local government managed toreintegrateasmanyas3,500out-of-schoolchildrenintotheeducationsystem.Thesechildrenwereidentifiedandengagedduringthedistrictgovernment’simplementationoftheSIPBMinall the villages within the district. In the Bone District of South Sulawesi province, thegovernmenthasissuedadistrictregulationspecificallyguiding(andallowingfor)theuseofVillageFundingforthepurposesoffurtheringlocalGKBMovements.Therearecurrently2,300out-of-schoolchildrenwhohavegonebacktoschoolwiththesupportofvillagegovernments.Meanwhile,inCentralJava’sBrebesDistrict,theGKBMovementprecededbythedevelopmentand implementationof SIPBMhas led thedistrict government to allocate5.7billionRupiah

Fundingsupportfromprivatesectorhelpedthesethirteenchildrenpreviouslyout-of-schoolfromParerejaVillageintheBrebesregency(@UNICEF/2018/Ulum)

Studentspreviouslyout-of-schoolhavereturnedtoschoolingthroughtheBack-to-SchoolMovementinMamujuRegency(@UNICEF/2018/Dinda)

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(aboutUSD400,000)tocovereducationcostsofOOSCwhowereidentifiedbythesystemandarereturningtoschool.Additionally,consideringthesizableOOSCpopulationinthatarea,thedistrict government has also mobilized funding from various other sources to support theinitiativeandaddresstheOOSCissue.Todate,morethantwothousandchildrenhavereturnedtoschools.

Box7.IndonesiaTeaches(IndonesiaMengajar/IM)

IndonesiaTeaches (IndonesiaMengajar/IM) is anonprofit organization that recruits, trains,anddispatchesthebestandbrightestyoungpeopletovariousdistrictsinIndonesiatoserveasaYouthEducatorandteachataprimaryschoolsaswellasinthecommunityinwhichtheyareplaced.Since2009,IMhasevolvedfromaprogramtobecomeamovementthatinvitesordinarycitizens to play an active role in improving education, as away to deliver and live out thepromise inherent in the nation’s constitution. IM believes that all Indonesian childrenthroughoutthenationhasarighttobasiceducationandthatthebestamongthegenerationsinthe country should play a guiding role. In its commitment to furthering educationaldevelopment,IMhastakentheinitiativeofsupportingprimaryschoolsinvariouscornersofthearchipelagothroughrecruitment,equipping,andplacementofthenation’sbestgraduateswhoare committed to serveothers, to teachat aprimary school foroneyear.TheseyoungpeoplewhoaresentouttoteachatprimaryschoolsindisadvantagedandpotentiallyremoteareasarecalledYouthEducators.

TheYouthEducatorsreceivedtrainingthroughtheIMmovement.Duringtheprogram’sfirstround of recruitment in 2010, IM successfully attracted 1,383 applicants from all overIndonesia.ThenumberofcandidatesfortheYouthEducatorrecruitmentforthesecondbatchin2011 tripled, to4,368graduatesofvariousuniversities in Indonesiaandabroad,and theprogramthenhadanacceptancerateof1.5%.Thenumberofcandidatesforthecomingyearskeptgrowing, to5,266candidates for the thirdbatch in2011, and8,501candidates for thefourthbatchin2012.Todate,IMhasplacedmorethansixhundredselectedyouthsasYouthEducatorsinmorethan134villagesin17regenciesthroughoutIndonesia,including:

1. NorthAcehDistrict,AcehProvince2. BengkalisDistrict,RiauProvince3. MuaraEnimDistricty,SouthSumateraProvince4. MusiBanyuasinDistrict,SouthSumateraProvince5. TulangBawangBaratDistrict,LampungProvince6. LebakDistrict,BantenProvince7. BaweanPulau,GresikDistrict,EastJavaProvince8. KapuasHuluDistrict,WestKalimantanProvince9. PaserDistrict,EastKalimantanProvince10. SangiheIslandsDistrict,NorthSulawesiProvince11. MajeneDistrict,WestSulawesiProvince12. BanggaiDistrict,CentralSulawesiProvince13. BimaDistrict,WestNusaTenggaraProvince14. RoteNdaoDistrict,EastNusaTenggaraProvince15. SouthHalmaheraDistrict,NorthMalukuProvince16. WestMalukuTenggaraDistrict,MalukuProvince17. FakfakDistrict,WestPapuaProvince

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Box8.

InclusiveEducationforAll

Even though Inclusive education is limited implemented in certain schools in certain areas,goodexperiencecanbepresentedasalearningprocessongoodpractice.Forexample:studentswithspecialneedsatMetroJuniorSecondarySchool2(SMPN2Metro)LampungProvincecansocializeandestablishgoodsocialrelationswiththeirpeerswhoarewithoutdisabilities.Theycan accept thedifferences andbuild social empathy, so that good social interaction is built,whichisconduciveforlearningprocessinschool.Theymotivatedeachothertoachievehighacademicachievement,evenamongstudentswithautismdisorderatthisschoolmanagedtobecome champions in the National Science Olympiad. The good thing is that childrenwithspecial needs have no obstacles, even they are capable to develop their self-esteem — apersonalityqualitythatshowsahighlevelofconfidence,whichimportantforachievement.

Inotherregions,theLocalGovernmentOrganizationsofSouthSulawesi,EastNusaTenggara,and Papua Province also conduct assessments and advocacy for school-age children withdisabilities.Forthisreason,theimportantthingsthatneedtobecarriedoutare:(1)increasingthe role of local government and strengthening affirmative policies to support theimplementation of inclusive education; (2) strengthening social advocacy movements andincreasingtheroleandparticipationofPeoplewithDisabilitiesOrganizations;(3)Preparationofthepublictoliveco-existwithandrespecttherightsofpeoplewithdisabilities.

QualityofTeachingandLearning

1. SchoolFacilities

TheIndonesiangovernmentcontinuestoshowcommitmenttoimprovethequalityofeducationinIndonesia.Effortsbythegovernmenthavehadgoodresultsinthelast3-5years.ItwasreflectedintheimprovementofvariousSDG4performanceindicatorsthatsupport thequalityof learningand teachingprocesses.This includes the fulfillmentofschoolswithaccesstoelectricity,internetforlearningpurposes,computersforlearningpurposes, clean water, single-sex basic sanitation facilities, and basic hand washingfacilities. Inaddition, indicators thatshowthequalityof learningcontinueto improve,such as the proportion of teachers with S1/DIV (higher education completion)qualification;andtheproportionofcertifiedteachers.

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In general, the quality of infrastructure to support education in Indonesiacontinually improved throughout the2015-2018period.Commitments to improve theuse of technology in learning are demonstrated by, among others, the increasingproportion of schoolswith access to internet and computers for learning. Specificallyrelatedtointernetaccess,theprogresswasquiterapidin2018comparedtothepreviousyear.

1DataontheproportionofschoolswithaccesstointernetforlearningaretakenfromEMIS(EducationManagementInformationSystem)byusingschooldataacrossalllevelsdividedbyeachlevel.

2DataontheproportionofschoolswithaccesstocomputersforlearningaretakenfromEMIS(EducationManagementInformationSystem)byusingschooldataacrossall levelsdividedbyeach level, then theavailabilityof computerslearningrooms(computerlabs,classrooms,teacherrooms,etc.)basedonschoolsthathavebeenrecorded

Figure10.ProportionofSchoolswithAccesstoInternetforLearning,2016-20181

Source:MoECEMIS2016-2018

Figure11.ProportionofSchoolswithAccesstoComputersforLearning,2016-20182


21.28 22.3634.70

28.72 31.08

49.2341.26 45.70

69.20

47.80 49.47

75.99

2016 2017 2018


SeniorSecondary VocationalSecondary

39.67 41.07 40.38

54.00 55.00 55.0064.36 67.50

72.9273.00 74.00 79.00

2016 2017 2018



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Meanwhile, Indonesia hasgenerally succeeded in ensuringschools to have access to electricity.Mostschools(above90%ofprimaryand secondary education) alreadyhaveaccess toelectricity.Vocationalsecondary school have the highestaccesstoelectricitycomparedtotheotherlevels.Figure12showsthat in2018 the proportion of vocationalsecondary schools with access toelectricity was 99.56% or almost100%. The proportion of schools attheprimaryschool levelwithaccessto electricity was the lowestcompared to theother levels,but itsgrowth was the highest at 1.15%pointsthroughout2016-2018.

Themostrapidprogressis intheproportion of schools with single-sextoilet facility. In 2018,most schools inIndonesiahadtoiletsingoodconditionandseparatedbysex.Seniorsecondaryschool had the highest percentage(84.14%) compared to other levels ofeducation; then followedbyvocationalsecondary school (83.40%); juniorsecondary school (79.48%) andprimaryschool(68.99%).Schoolswithaccess to clean water and basic handwashing facilities also continue toincrease.

Figure12.ProportionofSchoolswithAccesstoElectricity,2016-2018


Figure13.ProportionofSchoolswithAccesstoToilet(basicsanitationfacilities)bySex,2016-

2018Source:MoECEMIS2016-2018

93.2593.91 94.40

96.08 96.56 96.8598.0598.41 98.93

99.08 99.37 99.56

2016 2017 2018



31.40

68.99

41.88

79.48

35.82

84.14

41.36

83.40

2016 2017 2018Primary JuniorSecondarySeniorSecondary VocationalSecondary

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Figure14.ProportionofSchoolsWithAccesstoCleanWater,2016-20183

Source:EMIS(DataPokokPendidikan/Dapodik),2016-2018

Figure15.ProportionofSchoolsWithHandWashingFacilities,2016-20184

Source:EMIS(DataPokokPendidikan/Dapodik),2016-2018

2. TeacherCertification

Not only facilities and infrastructure, teachers also have an important role inensuringqualitylearningandteachingprocesses.Strengtheningteachercompetenciesinpedagogical,character,socialandprofessionalskillsareaimedtoreinstatetheroleoftheteacherasafacilitatorthatsupporttheprocessoflearningthatismoreeffective,activeandhighquality.Lawnumber14year2005concerningTeachersandLecturersmandatesthatteachersmusthaveacademicqualifications-minimumbachelordegree(S1)orfourthdiploma(D-IV)-andhaveaneducatorcertificateinaccordancewiththelevelofteaching.Through certification, teachers are expected to have a number of competencies inpedagogical,character,social,andprofessionalcompetence.

Inthepast3years,IndonesiahasmadeprogressinthepercentageofteacherswhohavetheminimumqualificationofS1/DIV.Thepercentageofqualified teachersat theprimaryschoollevelhasincreasedby4.14%,from84.21%in2016to88.35%in2018.Theincreasealsooccursinthejuniorandseniorsecondaryschools.

3DataontheproportionofschoolswithaccesstocleanwateraretakenfromEMIS,usingschooldataacrossall levels divided by each level, then schools with appropriate drinking water sources according tostandards(closedwells,dams,etc.)areselected.

4DataontheproportionofschoolswithhandwashingfacilitiestakenfromEMIS,usingschooldataacrossalllevelsdividedbyeachlevel,thenschoolsareselectedbyavailabilityofhandwashingtools(existing/not)and their facilities such aswater flow andwashing soap (existing/not). So only the schoolswith handwashingtoolsandhasalltheequipmentarecounted.

42.37

87.11

43.33

87.04

49.16

89.85

48.60

92.21

2016 2017 2018



44.5851.14

39.23

44.6747.21

51.63

47.0351.65

2016 2017 2018Primary JuniorSecondary


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Figure16.PercentageofTeacherswithMinimumQualificationofS1/DIV,2016-2018Source:EMIS,2016-2018

Figure17.TrendofPercentageofCertifiedTeachers,2016-2018

Source:EMIS,2016-2018

3. QualityofLearningOutcome

MeasurementsbasedonthePISA(ProgramforInternationalStudentAssessment)and Indonesian National Assessment Program (INAP), show that the proportion ofstudentsabletoachieveminimumcompetenceformathematicsandreadingisstilllow.

52.0

52.3

88.4

86.0

84.2

94.5

93.2

92.1

98.0

97.4

96.9

95.4

94.6

94.0

48.0

47.7

11.7

14.0

15.8

5.6

6.8

7.9

2.1

2.6

3.1

4.6

5.5

6.0

2018

2017

2016

2018

2017

2016

2018

2017

2016

2018

2017

2016

2018

2017

2016

Pre-Prim

ary

Prim

ary

Junior

Second

ary

Senior

Second

ary

Vocatio

nal

Second

ary

>=S1(bachelordegree)

<S1(bachelordegree)

66.6768.95

42.8147.8

45.0345.7549.4350.07

46.4949.1750.95

35.335.7237.34

33.3331.05

57.1952.2

54.9754.2550.5749.93

53.5150.8349.05

64.764.2862.66

2018

2017

2016

2018

2017

2016

2018

2017

2016

2018

2017

2016

2018

2017

2016

Pre-Prim

ary

Prim

ary

Junior

Second

ary

Senior

Second

ary

Vocatio

nal

Second

ary

Certified

Notcertified

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Figure18.Proportionofchildrenandyoungpeopleattheendoflowersecondaryachievingatleastaminimumproficiencylevelinreading

andmathematics,2000-2015Source:PISA2003,2006,2009,2012,2015from

http://data.uis.unesco.org

Figure19.Proportionofchildrenandyoungpeopleattheendofprimaryachievingatleastaminimumproficiencylevelinreadingand

mathematics,2016Source:INAP,2016

Basedongender, ingeneralgirls showbetter readingcomprehensionskills thanboys.During2003-2015,theproportionofgirlsachievingaminimumproficiencylevelinreadingincreasedto51%,comparedtoboysatonly38%.Formathematics,bothgirlsandboyswerealmostequal.


bysex,2000-2015Source:PISA2003,2006,2009,2012,2015


Figure21.Proportionofchildrenandyoungpeopleattheendoflowersecondary

achievingatleastaminimumproficiencylevelinmathematicsbysex,2000-2015Source:PISA2003,2006,2009,2012,2015


AsshowninFigure22andFigure23,socio-economicstatusaffectsthecompetenceofchildreninreadingandmathematics.In2015,readingproficiencyofchildrenfromtherichest families was 37% higher than children from the poorest families. In mathcompetencies, thegapbetweenthechildren fromtherichestandpoorest familieswasalsostillwideat38%.

37 42 47 45 4522

3423 24 31

2003 2006 2009 2012 2015

Reading Mathematic

47.11

20.58

Reading Mathematic

3742

47 45 4543 46

5852 51

3137 35 37 38

2003 2006 2009 2012 2015

Reading Reading(girls) Reading(boys)

22

34

2324

31

22

30 2423

32

22

39

23 25 30

2003 2006 2009 2012 2015

Mathematic Mathematic(girls) Mathematic(boys)

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Theminimumproficiencylevelinreadingforchildrenandyoungpeopleattheendof junior secondary school fluctuates by location. However, in 2015, this readingproficiencywasfarhigherinurbanareasat65%comparedtoruralareasatonly29%.Thechildrenandyoungpeopleachievingaminimumproficiencylevelinmathematicsinurbanareasarehigherthanthoseinruralareas,exceptin2006.Evenin2015,therewasanincreasinggapintheproficiencyofchildrenandyoungpeopleinmathematicsbetweenurbanandrural.


bySocio-EconomicStatus,2000-2015Source:PISA2003,2006,2009,2012,2015



achievingatleastaminimumproficiencylevelinmathematicsbySocio-Economic

Status,2000-2015Source:PISA2003,2006,2009,2012,2015



byLocation,2000-2015Source:PISA2003,2006,2009,2012,2015



achievingatleastaminimumproficiencylevelinmathematicsbyLocation,2000-2015

Source:PISA2003,2006,2009,2012,2015http://data.uis.unesco.org

Disaggregatedbysex,thedatafromINAPshowsmoregirls(allprovinces)achievedaboveminimumproficiencylevelinreading.ThehighestgapwasintheBangkaBelitungIslandsProvince,where71%ofgirlsachievedatleasttheminimumproficiencylevelinreading,comparedto49%forboys.Difficultyinreadingattheearlyeducationlevelwill

37 42 47 45 4554

62 64 5965

26 2735 36

28

2003 2006 2009 2012 2015

Reading Reading(25%Richest) Reading(25%Poorest)

22

3423 24

3139

5442 41

54

1321

13 15 16

2003 2006 2009 2012 2015

Mathematic Mathematic(25%Richest)

Mathematic(25%Poorest)

3543

4841

65

24

56

13

46

29

2003 2006 2009 2012 2015

Reading(Urban) Reading(Rural)

21

36

24 25

53

11

48

3

2317

2003 2006 2009 2012 2015

Mathematic(Urban) Mathematic(Rural)

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causedifficultiesinthenextlevelsofeducation.Forproficiencylevelinmathematics,bothgirlsandboyshaveequallylowproficiencyinallprovincesinIndonesia.

Figure26.PrimarySchoolChildreninGrade4AchievingatLeastaMinimumProficiencyLevelinReading,bySexandProvince,2016

ource:INAP2016

Figure27.PrimarySchoolChildreninGrade4AchievingatLeastaMinimumProficiencyLevelinMathematics,bySexandProvince,2016

Source:INAP2016

- 102030405060708090

100SulawesiBarat

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SulawesiTen

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Kalim

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CurrentPolicies,EffortsandGoodPractices

To improve the quality of education, MoEC established the 2013 Curriculum,starting from the 2013/2014 academic year. The 2013 Curriculum set a system oflearningthatunderlinesaffectiveaspectandabalancedcompetencebetweencharacter,skills,andknowledge,aswellasaholisticandenjoyablelearningexperience.Thelearningprocesswithin the2013Curriculumuseda scientificapproach toencouragestudents’creativity. Students are also encouraged to go through the process of observing,questioning,trying,reasoning,creating,andcommunicatinginalllearningexperiences.The books used in the 2013Curriculum are activity-based, that included the learningmodelandprojectsthatwillbeused.Additionally,fortheprimaryschoollevel,booksarearrangedthematicallyand inan integrated fashionbetweenmaterial fromonesubjectwithanother,andwiththeenvironmentaroundthestudentasawhole.Meanwhile,forscoring,the2013Curriculumunderlinesthestudent’slearningprocessandtheirhigherorderthinkingskill.

Due to its characteristics, the 2013 Curriculum required adjustment in manyaspects.TheMoECappliedtheCurriculumstage-by-stage,andtargetedtheapplicationofthe 2013 Curriculum in all schools by 20195. TheMoEC continues to develop schoolsespeciallytheschoolsthathavenotyetimplementedthe2013Curriculum.

Professional Development Program (Pengembangan KeprofesianBerkelanjutan).Teachersplayavitalroleintheeffortofimprovinglearningoutcome.One of theways to improve teacher competence is by optimizing thePengembanganKeprofesianBerkelanjutan(PKB).ThePKBisacontinuationoftheProgramProfesiBagiGuruPembelajar(ProfessionalTeachersProgram)whichwasimplementedbasedontheteachers’andeducationpersonnel.WiththisprogramtheMoECempoweredKelompokKerjaGuru/MusyawarahGuruMataPelajaran(Teachers’WorkGroup/ForumforSubjectTeachers).ThiswasdonethroughtheMoEC’sCentreforDevelopmentandEmpowermentofTeachersandEducationPersonnel(PusatPembangunandanPemberdayaanPendidikdanTengaKependidikan) alongwith theDevelopmentandEmpowermentofTeachersand Education Personnel of Marine, Fisheries, Technology, Information, andCommunicationsAgencyaswellasRegionalEducationAuthoritiesandothergovernmentinstitutions.

InthePKB,teacherswillbemappedintotengroupsbasedontheircompetence,andeach group will receive Professional Module based on those competences and sitCompetenceTests.Theprogramisheldthroughthreemethods:face-to-face,online,andonlinecombination.TheparticipationofteachersinthisProgramisimportanttodevelopinstructional skills and knowledge of the lesson contents that will improve learningoutcome.

Teachers’ Work Group/Forum for Subject Teachers (Kelompok KerjaGuru/MusyawarahGuruMataPelajaran)TheMoECrenewstheimportanceofteachersinevaluatingstudents’educationbyhavingthemcreatetheirownassessments,asoverthepastfewyearsteachershavenotbeenrequiredtodoso.Teachersneedtounderstandthestandardcontent,standardofevaluation,andbasiccompetencethatstudentsmust

5MinistryofEducationandCultureStrategicPlanning2015-2019

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pass. Thus, the MoEC is strengthening the role of the KKG/MGMP through greaterinvolvement on the preparation of the National Standard School Examinations (UjianSekolahBerstandarNasional)andCharacterEducation(PenguatanPendidikanKarakter).IntheNationalStandardSchoolExaminations,75-85%ofthematerialswerepreparedbysubjectteacherswhicharethenconsolidatedbytheKKG/MGMP.Besidesthepreparationofexaminations,itishopedthatastrongerKKG/MGMPwillincreasecollaborationamongteachers and build competence. To encourage the role of KKG/MGMP, the MoEC hasallocated900millionRupiahtosupporttheimplementationofnationalexaminationsandCharacterEducationbytheKKG/MGMP.

Improvementofundergraduate(S1/DIV)degreequalification.AnothereffortbytheMoECthroughtheDirectorateGeneralofTeachersandEducationPersonnelisbydeveloping an acceleration program for improving undergraduate (S1/DIV) degreequalifications through conversion program. The program begins by allocation ofresources forConversionTraining in24Universities.Then,studentsof theconversionprogramaregiveneducationaidin26universitiesand10LongDistanceLearningUnit(UnitProgramBelajarJarakJauh/UPBJJ)intheOpenUniversities.

NationalLiteracyMovement(NLM).ToimprovethereadingskillsofIndonesiancitizens, theMoEC encouraged the National LiteracyMovement since 2016. TheNLMWorkGroupwasestablishedby theMoEC to coordinate literacyactivitiesby relevantunits. From the NLM, came several other movements, such as the School LiteracyMovement to improve reading skills of students; Center for Language Developmentreleased books for students based on local culture; and the One Teacher One BookMovementimprovedthecompetenceofteachersinreadingandwritingsubjects.In2017,the NLM was planned as a joint movement between the main actors of the literacymovementbypoolingpotentialandwidenpublicengagementinfosteringandbuildingaculture of literacy in Indonesia. Families, schools, and communities all over IndonesiaparticipatedintheNLM.

WASHinSchool.Withrespecttofacilities,afocusoftheMoECisimprovingaccesstocleanwater,sanitation,andhygiene(WASH)inschools.ImprovingWASHfacilitiesisimportanttoensurethehealthofstudentsasitmayaffectlearningoutcomes.OneeffortthathasbeendonebytheMoECincooperationwithUNICEFisincreasingaccesstoWASHfacilities focusedoneradicationofopendefecation,promotionofacultureofwashinghands,andmaintenanceofthequalityandquantityofwater.Thisprogramguidesschools,parents, and communities around the school to build an action plan to realize betteraccesstoWASHfacilities.

Box9.ImprovementofLearningOutcomesParticularlyinLiteracyand

NumeracyforStudentsinEarlyGrades

Inanefforttoimprovethelearningoutcomesofstudentsinearlygradesparticularlyinliteracyandnumeracy,whichisstillachallengeinIndonesia,theprogramInnovationforIndonesia’sSchool Children (Inovasi untuk Anak Sekolah Indonesia/INOVASI) was established incooperationwiththeAustraliangovernmentthroughtheexistingGuruBAIK(GreatTeacher)program.Itdevelopedaneffectivelearningmethodtoattractstudents’interestinseveralareasin Indonesia, especially for students in early grades. It has gained support from localgovernment and communities in the form of financing for the program. For example, local

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governments have allocated local budget for teacher training and provision of readingmaterials.Besidelocalgovernments,INOVASIhasalsopartneredwith18NGOsandeducationorganizationsinIndonesia.

Box10.RumahBelajar

Rumah Belajar is an online learning platform developed by the Education and CultureInformationandCommunicationTechnologyCenter,MinistryofEducationandCulture,whichcan be accessed via https://belajar.kemdikbud.go.id link. Rumah Belajar aims to providecomprehensive learning for students and teachers throughmore interesting and interactivemedia.RumahBelajarprovidesservicesof learningmediasources inthe formof interactivelearningmaterialsthatareequippedwithsupportingmediaforimages,animations,videosandsimulations, as well as digital books. The dissemination of this learning method of RumahBelajar was assisted by Ambassadors of theRumah Belajar in 34 Provinces, as part of theMinistryofEducationandCulture.

RumahBelajar’slinkconsistsoftwofeatures,namelythemainandsupportingfeatures.IntheMainFeaturesmenuthereareeightgroupsofcontent,namelyLearningResources,ElectronicSchool Books, Question Banks, Virtual Laboratories, Cultural Maps, Space Exploration,Sustainable ProfessionalDevelopment, and VirtualClasses. On the SupportFeatures menu there arethree groups of content,namely Teacher's Work,Community Work, andLanguage and LiteratureWork. For example, theCultural Map feature,prepared to provide avariety of cultural learningmaterials in Indonesia sothat students can betterknowandappreciatethediversityofcustomsandculture.

RumahBelajariseasilyaccessibleandcanbeusedbyteachersandstudentsfromalllevelofeducation, as their jargon says “learning anywhere, anytime, with anyone”. So far, RumahBelajar has been used by teachers as a source of learning media. For teachers in area 3T(Terdepan, Terluar, Tertinggal/The borderline frontier, the outermost and underdevelopedregions),theabsenceofinternetconnectionintheclassroomisnotanobstacleincarryingoutthelearningprocesswithmaterialtakenfromRumahBelajar.RumahBelajar’smaterialscanbedownloadedforfree,andstoredinadatastoragetool,whichcanthenbedisplayedinclasswithanLCDprojectoroffline.Inthiscase,theteacheractsasafacilitatortodisplaymaterialfromRumahBelajar,hence,evenclassesthatarenotaccessibletotheinternetcantakeadvantageofRumahBelajarcontent.RumahBelajarisaformoflearninginnovationbyutilizinginformationtechnology,whichsupportseffortstoimproveequityofqualityeducationservice.

CulturalMapsFeatureatRumahBelajar’sLink

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Box11.Ruangguru

Ruangguru is thebiggestandmostcomprehensive technologycorporation in Indonesia thatfocusesoneducationservices.Currentlyithasmorethan6millionusersandmanages150.000teachersofferingservicesinmorethan100subjects.Thecorporationwasestablishedin2014byBelvaDevaraandImanUsman,bothofwhomareintheForbes30Under30listinconsumertechnologyinAsia.Ruangguru iscommittedtobeapartnertolocalgovernmentstoprovidequalityeducationthroughLearningManagementSystem.Lastyear,Ruanggurupartneredwith32(outof34)provincialgovernmentsandmorethan326municipalgovernmentsinIndonesia.Ruangguru also offers study video subscriptions, private lessons marketplace, on-demandstudyguideservices,andonlineexaminationtry-outs.

Ruangguruaimstoimprovethequalityofteachingbycreatingjobopportunitiesandadditionalincome for Indonesian teachers. As the quality of teaching improves, so does the quality ofeducation.Ruanggurubelievesthattechnologycanhelpstudents,teachers,andparentstocarryouttheireducationactivitiesmoreeffectivelyandefficiently.

Ruangguruoffersservicestosupporteducation,suchas:

• RuangbelajarRuangbelajar is a non-formal learning service in the form of online study guidancetaught by the best tutors for each subjects. There are five thousand animations andvideosforstudying,20.000practiceproblemsandanswers,andthousandsofmodulesummariespresentedwithpleasingvisualsandreadyfordownloadasstudymaterial.

• RuangguruDigitalBootcampRuangguruDigitalBootcampisanon-formallearningserviceformaterialreviewandonline intensive examinations program with a national standard. Every group chatconsistsof20students,1 tutor,and1 facilitatorofchoice.Studentswillalsoreceivelearning modules everyday, presented with interesting visuals and comprehensivediscussions.

• Ruangles

Ruanglesisanon-formaleducationserviceinwhichRuangguru-selectedteachersmeetface-to-facewithstudentsintheirhomes.

70

• RuanglesonlineRuanglesonline is a non-formal education service that explains problems sent bystudentsonline,answeredwithin30minutes.AnswersandexplanationsaregivenbyteachersthathavebeenselectedbyRuangguru.

• RuangujiOnlineexaminationservice.

Box12.TanotoFoundationBasicEducationProgram

Tanoto Foundation has implemented a basiceducation improvement program since 2010reaching over 500 primary schools in threeprovinces in Sumatra and achieved impressiveincreases in student reading scores. The programaimed at achieving improvements in studentlearning outcome and proved successful asintervention schools in Riau achieved scores of54.8% in early grade reading relative to theprovince-wide average of 48.6% based on anevaluationconductedin2016.In2018,followingacomprehensivereviewof itsprograms, theTanotoFoundation launched a new expanded program to

improve the quality of basic education: PINTAR, based on its own successful experience anddrawing on the experience of other successful programs funded by USAID, UNICEF and otherdonors.Thenewprogramhasalreadyreached440schoolsinitslaunchyearandplanstoreachthousandsmorethroughlocalgovernmentdisseminationwithinthreeyears.

The PINTAR program is working in partnership with theMinistries of Education and Culture(MOEC),ReligiousAffairs(MORA)andResearchTechnologyandHigherEducation(MORTHE)andwith14districtsand10TeacherTraining Institutes (TTIs) inNorth Sumatra, Riau, Jambi,CentralJavaandEastKalimantanprovinces (2 TTIs in eachprovince). In 2019, the programwill enter six new districts toreach over 580 schools directly.Tanoto Foundation has signedMOUswithallthesepartnersandis working to build governmentcapacityespeciallyatlocalleveltoraisethequalityofbasiceducationinprimaryandsecondaryschoolsinasustainablemanner.

TanotoFoundationhascompletedstudentassessments in literacy,mathematicsandscience toidentifypriorityareasforintervention,whichshowedthatonly60%ofgrade3studentswereableto read fluentlywith comprehension and that only 18% of grade 3 studentswere able to usemathematicalskillstosolveproblemscommensuratewiththeirage.Asaresult,forliteracy,theprogramfocusesondevelopingstudentsreadinghabitsandincreasingtheirabilitytocomprehendwhattheyread.Inmathematicsandscience,thefocusisonensuringthatstudentsunderstandthe

MaylaAristaWidya,siswaSDN173TanjungBenanak,Jambi,showedagoodpracticeinreadingonSchool

LiteracyFestical

MapofPINTARProgramAreas

71

conceptstheylearnandareabletoapplytheminlivesituations.Assessmentswillbeconductedattwo-yearly intervals toassessprogress in literacy,mathand science in theprimaryand juniorsecondaryschool.

The program improves the day-to-day practices of teachers and the changes to the classroomlearningenvironmentareevidenttoanyonewhovisitsaPINTARschool.Forexample,mostofthe440partnerschoolshaveestablishedreadingcorners intheirclassrooms, instituted15minutedailyreadingtimesforstudentsandmanyhaveengagedparentsandcommunitiesinprovidingadditional books for their schools. Some districts are using mobile libraries to support theirschools. Tanoto Foundationdocuments its approaches in a series of best-practices handbooks,whichitwillinglyshareswithpartnersalongsideitsPINTARmodulestospreadimpactbeyonditsownactivities.

Tanoto Foundation elevates the students and teachersbenefitting from improved practices as ambassadors forthe PINTAR approach to promote ever-expandingdissemination among public and private stakeholders onnationalandsub-nationalstages.Astudentfromaschoolin173TanjungBenanak district in Jambi province recentlyappeared at a reading promotion event at MOEC andexplainedeloquentlyhowshereadsonaverage2-3booksperweekandthatthishasimprovedherwriting.Shehaswritten her own story books, and reports on science,technologyandmathexperiments.

The success of this approach is evident in the level of autonomous government uptake of thePINTAR program to-date outside Tanoto Foundation’s own planned and executed activities.DistrictgovernmentsandMORAhaveallocatedfundingandrolledouttheprogramtoover1,000non-partnerschoolsinaperiodofonly7months.Manyoftheseschoolshavefundedtrainingusingtheirownoperationalfunding.

.

Box13.TrainingofPrincipalLeadershipQualityImprovement

Muhammadiyah manages 6,049 schools (Islamic primary to secondary school/SD-SMA)distributedalmostalloverIndonesiawithmorethan60,474principalsandteachersintotal.Thisis part of Muhammadiyah’s contribution in educating the nation and taking on the role ofadvancingIndonesianeducation.Tooptimizetheirroleinaneffectivemanner,Muhammadiyahplantofurtherimproveandequalizetheirschoolqualitybyhavingtheprincipalplayastrategicrole.Thus,trainingforschoolprincipalsareneededtoimprovetheirleadership.

Thesetrainingactivitieswerecarriedoutfor3-4days.TheorganizeroftheeventswastheCouncilofPrimaryandSecondarySchoolDepartment(Dikdasmen)PPMuhammadiyahasrequestedbythe Dikdasmen Provincial and regional assemblies. In addition, the Council of Dikdasmen PPMuhammadiyah was in charge for preparing the curriculum and as training facilitators. Thenumberofschoolprincipalsparticipatedinthesetrainings,asfollows:

SainsactitivitiesinMTsN1Balikpapan,EastKalimantanProvince

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EducationLevel LocationandDateofImplementation

Participant

PrimarySchool − Jakarta,3-6October2017− Makasar,17-20April2018− Yogyakarta,24-27April2018− Medan,6-9May2018

1207012090

JuniorSecondarySchool − Yogyakarta,24-27September2018− Medan,17-20September2018− Makassar,22-25October2018

728071

SeniorSecondarySchool Mojokerto,12-15November2018 120VocationalSecondarySchool Malang,2-4February2019 269

Training activities to improve the quality of school principal leadership have not beenimplementedintheFrontier,Outermost,andDisadvantagedRegion(3T)duetolimitedlaborandcosts. From the various implemented activities, many school principals can be utilized asfacilitators and resource persons to provide their best experience in leading their respectiveschools.

Box14.SekolahGuruKebhinekaan

SekolahGuruKebhinekaan(TheDiversityTeacherSchool)beganin2016andisstillrunningtoday.SekolahGuruKebhinekaanconsistsof15meetingsthatstrengthentheunderstandingofthephilosophyofeducation,developknowledge,andimproveteacherlearningmethodologyskills. The approach in Sekolah Guru Kebhinekaanmeetings involves various partners thatallow the opening ofmeeting rooms. However, the involvement of participants as learningresourcesisasimportantasthespeakerspresented.

Sekolah Guru Kebhinekaan (The Diversity Teachers School) participants are teachers fromvarious levels of education, both from institutionsmanaged by the government, private orcommunity.Teacherswereremindedagainofthephilosophyofeducation,history,andlifeofthenation,humanrights,aswellasethnicandreligiousdiversityinIndonesia,includinglocalreligion.Overall,SekolahGuruKebhinekaanisexpectedtostrengthentheteachertobecomeareferencefordiversity,nationality,andhumanity.

ThealumniofSekolahGuruKebhinekaan,DianMisastra,initiatedamovementtorejectchildmarriage at SDN 01 Tegalwaru, Purwakarta. He gives understanding to parents, especiallyfathers,abouttheimpactofchildmarriageonthehighratesofmaternalandchildmortality,aswell as the process of impoverishment. All students in her school are now continuing theireducationtothejuniorhighschoollevel.Whileontheissueofdiversity,UswatunHasanahandNurlela,initiatedasimulationofthevisitofvarioushousesofworshipintheclassroomatSDN06Rawajati, Jakarta.Thissimulation introducesstudents toreligiousdiversityaswellasanefforttoopenmeetingspacewithinthelimitedlearningresourcestheyhave.

(Source:YayasanCahayaGuru)

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Box15.SekolahLiterasiAnggaranPendidikan–TheEducationBudget

LiteracySchool

The initial stage of this activity is to recruit prospective participants. Determination ofparticipantswasbaseoninterviewsaboutthebackgroundoftheirinterests,commitments,andplans for what will finish. After being selected, they will take part in learning activities inSekolahLiterasiAnggaranPendidikan(TheEducationBudgetLiteracySchool)foronemonthbythecurriculum.Learningisdone70%intheclassroomand30%practicesinthefield.Duringonemonth,participantswill receivesomeeducationbudget literacy theories,and then theywerealsogivenassignmentstotakeactionrelatedtothemethodsthathadbeenstudying.Atthe end of the lesson, theymust make a report and present what they have obtained andexperiencetheactioninthefieldrelatedtoliteracyandbudgetadvocacycampaigns.Finally,allparticipantsmakeajointaxisplantodobudgetadvocacyforqualityandinclusiveeducation.

Someoftheresultsareincreasedcompetencyandcommunityparticipationinmonitoringandevaluating the educationbudget and its implementation at the school level, The increase ineducation budget allocation in the Regional Expenditure Budget (APBD) will follow by abudgetingsystemthat is infavorofthepublic interest followingtheprinciplesofallocation,distribution,supervision,andhighaccountability,andtohavetostrengthentransparencyandaccountabilityinmanagingeducationbudgetsinschoolsthroughpublicreportingmechanismsandonlinesystems.

(Source:NEWIndonesia)

Skills,Vocation,andEmployability

1. TeenageandAdultParticipationinFormalandNon-FormalEducationandTraining

Youthparticipationlevelineducationmaintainspositivetrendforformalandnon-formal education, including vocational courses. Throughout 2009-2018, there was asharpincreaseof14%.Youthopportunitytoattainformalandnon-formaleducationisalsoequalbetweenmaleandfemale.

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Figure28.YouthParticipationinFormal/Non-formalEducationandTraining,2009-2018

Source:SusenasMSBP,2009-2018

Figure29.YouthParticipationinFormal/Non-formalEducationandTrainingby

Characteristic,2018Source:SusenasMSBP,2018

Thepercentageofyouthwithdisabilitiesparticipatingineducationandtrainingwasabout50percentlowerthanthosewithoutdisabilities(Figure29).ThisshouldbegivenattentionasthedisabledgroupisoneofthefocusesinSDG4targets.

2. WorkforcebyEducationLevel

High-quality, skilled, and innovative human resources should boost productivityandcompetitivenessoftheIndonesianeconomy.Tothatend,educationservicesshouldbeabletoproducegraduateswithcompetenceandskillsthatarereadyforthemarket,includingentrepreneurship,andgraduateswithskillstoadaptquicklytotheneedsofthemarket.Notjustthroughformaleducation,non-formaleducationandtrainingmayalsobeachoicetoobtaintechnicalskillsneededintheworkforce.

Figure30.WorkforcebasedonLevelofEducationCompletedSource:NationalLaborForceSurvey(Sakernas),2008-2018

The number of workforce that has completed Vocational Secondary Schoolingincreasedeveryyear.In2018,around15millionoftheworkforcecompletedVocationalSecondarySchool,andaround3millionoftheworkforcecompleteddiplomadegree.

34.65

37.9

45.948.7

30

35

40

45

50

2009 2012 2015 2018

48.7 50.9 45.7 48.6 48.7 48.9

24.5

75

In2018,thenumberofworkforcethatcompletedJuniorSecondarySchoolwas78.7million people, while those that completed Senior Secondary School were 41.2% oraround55.2millionpeople.

Figure31.WorkforcebyCompletedLevelofEducationSource:NationalLaborForceSurvey(Sakernas),2008-2018

Althoughtherehasbeenanincreaseinyouthparticipationinformaleducation/non-formaleducation/training,theproportionoftheyouthswhoparticipateinsucheducationhasnotreachedanacceptablelevel.Forexample, in2018therewasapproximately49percentofyouthwhoareparticipatingineducationortraining.Itissuspectedthatthishappens because said youths prefer to work compared to being enrolled in formaleducation,vocationalcourses,ortraining.Thedatashowsthatthepercentageofthelaborforce absorbed by the labor market based on the level of education the level ofemploymentofthevocationalsecondaryschool(SMK)graduateshasbeencontinuouslyincreasingforthepastdecade.However,thelevelofemploymentofSMKgraduateswasnotsignificantlyhigherthanthelevelofemploymentofSMA,SMP,orevenSDgraduates.In2018forexample,91%ofSMKgraduateswereabsorbedintotheworkforce,comparedto94%ofjuniorsecondaryschoolgraduates.

76

Figure32.Working/LaborForcePercentageBasedonHighestCompletedEducation,2008-2018

Source:NationalLaborForceSurvey(Sakernas),2008-2018

CurrentPolicy,EffortsandGoodPractices

Therehavebeen someefforts currentlybeingundertaken inorder to encourageyouth participation in formal education/non-formal education/training, such as: (1)Empowerment of Community Learning Centre (Pusat Kegiatan BelajarMasyarakat/PKBM)asanavenueofnon-formaleducationasstatedinLawNumber20Year 2003 on National Education System; (2) Provision of entrepreneurship trainingprogramandproficiencyfornon-schoolingpopulation;(3)ExpansionofIndonesiaSmartProgram (Program Indonesia Pintar/PIP) to cover higher level of education andvocational course; (4) Cooperation with private sector and other countries such asGermany,inordertoexpandandimplementvocationaleducationsystemwherestudentsareabletostudyandconcurrentlyapplytheknowledgeincompanies,whilebeingpaidsalaries.Assuch,SMKgraduatesareguaranteedtopossesshigheremployability–orevenstudyinschoolwhileworking–andatthesametimepossessinghighqualityskillsaftertheirgraduation.

Box16.TheMustahikEntrepreneurProgram

TheMustahik6 Entrepreneur Program ismotivated by population growth that is increasingrapidly every year and limited employment opportunities, encouraging the productive agepopulationtoownbusinessthroughentrepreneurialactivities.Thisactivityisnotonlytofulfilllivingneedsbutalsotoprovidenewjobsforothermembersofthecommunity.

Inthisprogram,severalinterventionswerecarriedoutsuchasbusinessdevelopmentanalysis,markets analysis, product development strategies and product quality, as well as product

6Mustahik:peoplewhoareentitledtoreceivereligiousalmstothepoorandneedy(zakat)

77

marketingstrategiesimplementationandlegalaspects,asnewentrepreneursneedintensivementoringactivitiesintheimprovementprocess.Forthisreason,BAZNAS(BadanAmilZakatNasional-philantrophy actor) through the Mustahik Entrepreneur program encourages thepresenceofnewentrepreneurs.

In this program, entrepreneurs are put into business groups to motivate each other andfacilitatementoringactivities.MustahikEntrepreneursProgramareaimedtowardsmustahikwhowillrunabusinessorarerunningabusinessofvarioustypesofproductsinhousehold-scalebusiness.ThebeneficiariesoftheMustahikEntrepreneurProgramaredisabilitygroups.ThelocationoftheMustahikEntrepreneursprogramisspreadacrossIndonesia.

The parties involved in the Mustahik Entrepreneur program are the central and regionalBAZNAS offices, the Regional Governments, local communities and local stakeholders. TheMustahikEntrepreneurprogramconsistofmappingthebusinessindetail;analyzingbusinesscapital and proceeds; providing intensive assistance on business motivation, productdevelopment, and spiritual strengthening. Each business group will be accompanied byprogramassistantsandprogramcoordinatorswhowillthenmarketanddevelopajointmarketnetwork(currentlythereareLapakhalal.comandtheBAZNASmarketinggroup).

AsofApril2019,thenumberofbeneficiariesofthisprogramwas3,046householdssourcingfromMustahikEntrepreneurscapitalassistancewhichoriginatedfromZakatfundsforthepoor(Asnaf).TheoutcomeofMustahikEntrepreneursprogramcanbeobservedthroughasurveyoftheprogramimpact.Thissurveyaimstomeasurethesuccessoftheprogram,takingsamplesofmustahikwhohavereceivedtheassistanceformorethan6months.Theaveragechangeinincomeofmustahikbeneficiariesrangesfrom45-50%permonth.

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Box17.SekolahPerempuan

SekolahPerempuan(TheWomen'sSchool)isonemodelofempoweringpoorwomenthroughalifelongprocessoflearningeducation.EmpoweredwomenwillbecomeimportantactorsinrealizingSustainableDevelopment/SDGs,especiallytheprincipleof"noonecanbeleftbehind."Therefore,theWomen'sSchoolwasdeveloped,sothatpoorwomenhavecriticalawareness,caring,solidarity,lifeskillsandarecommittedtobecomingactorsofsocialchangetobefreefrompoverty.

SekolahPerempuanwasinitiatedbytheKAPALWomen'sInstitutesince2000andcurrentlyhasspreadandbeenreplicatedinvariousregions.SekolahPerempuanaredevelopedinpoorrural, urban, coastal, and remote islands communities.Members of the Sekolah Perempuanlearning community come from diverse ethnicities, religions, gender, ages, and physicalabilities.Todate, thereare5,290 femaleSchoolmembers from69villages in6provinces inIndonesia,namelySouthSulawesi,WestNusaTenggara,EastNusaTenggara,East Java,DKIJakarta,andWestSumatra.

Sekolah Perempuan members have critical awareness, confidence, and courage in makingchanges.Theydaretonegotiateintheirhomesandtheirrespectivecommunitiesatthevillagetothedistrictlevel.Theymonitordevelopmentandprovidedataonwomen'spovertytoensurethefulfillmentoftherightsofthepoor,especiallywomen.Theyalsodaretotaketheriskofcampaigningforsensitiveissuessuchastheeliminationoffemalecircumcision,childmarriage,anddomesticviolence.ThedistrictgovernmentreplicatestheWomen'sSchoolto44villagesinthe2016-2021ofRegionalMedium-TermDevelopmentPlan(RPJMD)withatotalbudgetof3.9billion and allocates 2.5 billion for Women's Special Equality Education in North LombokRegency.

(Source:IstitutKAPALPerempuan)

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Box18.AkademiParadigta

TheParadigtaAcademyisastructuredandaffirmativeeducationandtrainingprogram,whichisparticipatedinbywomeninruralandurbanpoor,especiallywomenheadsofhouseholds,disabilitygroups,andmarginalgroups.Thiseducationappliesfourinnovations:

• “Actiontraining”;theeducationalprocessaswellasactivitiesoractionsinthefieldandrealityoflife,aswellasdirectinteractionwithvariousstakeholders.

• “Mentorships”;Theprocessofmutual learningbetweenacademics (participants)andmentors who both become learning resources. Mentors are Pekka cadres who arespeciallytrainedforthelearningprocesswiththementorshipssystem.

• Multistakeholder involvement in theparticipant recruitmentprocess;participantsarerecommendedbythevillagegovernmentandthecommunitysothattheconcernedisavillageenvoyandwhenhefinisheshiseducationwilltakepartinhisvillage.

• "Working Module"; the module was developed generically based on PEKKA's longexperienceinthefield.

• Abouttheflexibility;flexiblelearningapproachwithtimearrangementsagreeduponbytheparticipantsandmentorswhentheylearninParadigtaacademy.

The education process provides a change in the participants of the Paradigta AcademyregardingAccesstoknowledge;Criticalawarenessandthinking;Activeparticipationinsociety;andControlofthevillagedevelopmentprocess.Sinceitsdevelopment,therehavebeen2,524women who have participated in the Paradigta Academy, and 2,081 of them successfullygraduatedandgraduated.Theycamefrom523villages,31regencies,in10provincesincludingAceh,WestJava,CentralJava,WestKalimantan,NTB,NTT,SoutheastSulawesi,Maluku,Riau,DKIJakarta.Theyareinsights,knowledge,andskillsandconfidencetoparticipateandinfluencethe village. They also increased their leadership, involvement in decision making andrepresentationinthevillagenotonlyintheMusrenbangatvariouslevelsbutalsoasleadersandmotivatorsofthecommunity.Theydevelopedvariouspilotprogramsinthecommunity,advocatedfor localregulations,villageregulations,andcustomaryregulationsrelatedtotheprotectionofwomen,essentialservices,andvillagebudgetfunds.Thisinitiativehasreceivedsupport from117 village governments in 38 Subdistricts, 20Districts in 8Provinceswhichallocated a total of IDR 1,336,439,000 for the participation of villagewomen following theParadigta Academy and IDR 731,773,000 for education and health activities proposed byparticipants.

(Source:PEKKA)

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Box19.Youth-LedActionResearchforYouthEmpowermentSkills

Youth, aspart of the vulnerable and left-behindgroups indevelopment and empowerment,havehugepotentials in their contribution to social andeconomicdevelopment.Theyare intheir productive age but the access to education and the workforce is still a challenge. Toovercometheobstacles,theNetworkforEducationWatch-Indonesia(NEWIndonesia/JPPI)isimplementingaskilldevelopmentthroughtheYouthLead-ActionResearchprogram.TheNEWIndonesiaisanationalcoalitionofNGOsthatfocusedoncivilsocietydevelopmentineducation.

Theprogramencouragesyouthwitha process of self-awareness andcritical thinking of the youth basedon the real life's experience, using‘action research’. This research isimplemented by the youththemselves, so the youth areempoweredtoidentifytheproblemsand the solution, and then they arealso equipped with organizationaland advocacy skills to enable theyouthtovoicetheiraspirationinthecontext of supporting a villagedevelopment. The trainings aretailored and personalized for the needs of the youth, such as: training of weaving, screenprinting,digitalliteracy,socialmedia,marketing,workshop,fishingmanagement,culinary,etc.Thisprogramhasbeenimplementedsince2016andhasbeenimplementedinregionssuchasTanah Datar regency, Tanjung Jabung Timur, Solok Selatan, Pandeglag, Lombok Tengah,LombokTimur,andSawahluntoCityforaround1,500youth.

Strengtheningof1-YearPre-PrimaryEducation

1. AdjustedNetAttendanceRate

Theglobalindicatorusedtoobservetheproportionofpopulationaged6yearsoldwhoareactivelyparticipatinginorganizedpre-schooleducationforayear,isreferredtoasANAR(AdjustedNetAttendanceRate).

WeavingTrainingForYoungWomen

81

Figure33.Participationof5and6YearOldsinOrganizedLearning,2002,2010,2015-2018Source:SusenasKor2002,2010,2015-2018

Generally,itcanbeconcludedthatalmostall6yearoldsreceivedorganizedlearningservices,beitinpre-primary(EarlyChildhoodEducation/PAUD)orprimaryschools.Forthepast16yearsbetween2002to2018,theANARindicatorfor6yearoldshassharplyimprovedby36%(Theglobalindicatorusedtoobservetheproportionofpopulationaged6yearsoldwhoareactivelyparticipatinginorganizedpre-schooleducationforayear,isreferredtoasANAR(AdjustedNetAttendanceRate).

Figure34.Participationof5and6yearoldsinOrganizedLearningBasedonGender,2002,

2010,2015-2018Source:SusenasKor2002,2010,2015-2018

Figure35.Urban-RuralDisparityinParticipationof5and6yearoldsinOrganized

LearningSource:SusenasKor2002,2010,2015-2018

Thegovernmenthastakenmultipleefforts inordertoensureequitableaccesstoeducation(includingforpopulationsunder6yearsold)andithasshownsufficientlygoodresults.OneevidenceofthisistheconvergenceofANARnumbersinallaspects.Fromtheangleofgenderdisparity,girlsparticipationhasalwaysbeenhighercomparedtoboys.

59.5

83.3

95.8 94.9 94.9 95.9

34.1

56.4

79.4 76 77.283.3

2002 2010 2015 2016 2017 2018

6yo 5yo

60.9

84.996.4 95.3 95.5 96.1

58.2

81.895.4 94.5 94.3 95.6

35.8

58.4

80.6 78 78.4 84.5

32.6

54.6

78.3 74 76.182

2002 2010 2015 2016 2017 2018girls(6yo) boys(6yo)

girls(5yo) boys(5yo)

49.7

79.1

94.6 93.5 94.4 95.373.5

88.197.1 96.2 95.3 96.4

2002 2010 2015 2016 2017 2018

Perdesaan PerkotaanUrbanRural

82

However,theANARgapfor6yearoldsdecreasedtoonly0.5%(2018).TheANARgapinruralandurbanareasalsoconverged.Theurban-ruralgapwhichreachedabout24%in2002decreasedtolessthan1percentin2018.

Figure36.Participationof6yearoldsinOrganizedLearningBasedonIncomeLevel,

2002,2010,2015-2018Source:SusenasKor2002,2010,2015-2018

Figure37Participationof6yearoldsinOrganizedLearningforDIYogyakarta,WestPapuaandPapuaProvinces,2002,2010,2015-

2018Source:SusenasKor2002,2010,2015-2018

Thegapofthehighestandlowestincomegroupshasalsobeensharplyreduced.Therich-poorgapwhichwasabout33%in2002hassharplydecreasedtoonlyaround2%in2018. Investment in early childhood education will not produce good results unlesseffortstoalleviatepovertyandincomegapinthegeneralpopulationaremade.Disparitygap among provinces has also decreased although not as rapid as the gap in otherindicators.TheANARgap for6yearoldshasalsobeen smaller.ThegapsbetweenDIYogyakarta,WestPapuaandPapuaProvinceswerereduced,eventhoughtheaveragegapremainsat38%in2018.StrikingdisparityoccurredbetweenANARofdisabilitiesgroupandnon-disabilitiesgroupwheretheANARfornon-disabilitiesishigherby15%(96%ascomparedto81%)in2018.

Fromaround86%of6yearoldsinprimaryschool,20%ofthemhasneverenrolledinpre-primaryeducation(PAUD)andfrom20%of5yearoldsinprimaryschool,6.1%ofthemhasneverenrolledinpre-primaryeducation.In2018,theproportionof6yearoldsenrolled inpre-primaryeducationwasonly9.6%.However, thisparticipationnumberincreasedby3.5%since2015.

45.8 72.5

93.2 91.2 92.1 94.2

8492.9 98 97.8 96.8 96.8

2002 2010 2015 2016 2017 2018

20%Termiskin 20%Terkaya

96.3 98.4 98.7 98.4 99.7

69.885.5 87.5 85.1 88.6

45.960.3 58 62.1 61.5

2010 2015 2016 2017 2018

DIYogyakarta PapuaBarat

PapuaPoorest Richest

83

Figure38.Participationof5and6yearoldsinOrganizedLearningbasedonTypesofSchool,2015-2018

Source:SusenasKor,2015-2018

Parentsstillenrolltheirchildrentoprimaryschoolseventhoughthechildrenarebelow 7 years old. The data indicates that until 2018,most of 6 year olds (86%) areenrolled in primary school. Furthermore, 20% of 5 year olds are enrolled in primaryschool.Meanwhile,MoECadvisedthatachildshouldstartprimaryschoolattheageof7.


Inordertoimproveparticipationrateof6yearoldsinpre-primaryeducation,theGovernmentlaunchedsomeprogramsandpolicies,suchas:ImplementationOperationalAssistance (BantuanOperasional Penyelenggaraan/BOP)PAUD,OneVillageOnePAUDprogram,Holistic-IntegrativePAUDProgram,Compulsory1YearofPAUDMovementandimplementing structural changes in PAUD organization in order to encouragecommunities/institutions to establish PAUD and encouraging establishment ofDevelopment Agency/Development Centre PAUD (Badan Pengembangan/PusatPengembanganPAUD-BP/PPPAUD)inprovinces.

Some good practices in improving the service of early childhood education incommunitiesare:(1)introducingonlineplatform(sahabatkeluarga.kemdikbud.go.id)asacommunicationchannelbetweenparentsandtheschool;(2)increasingtheaccesstoPAUDthroughoneroofkindergarten(TK)andprimaryschool(SD),andatthesametimeutilizingearly levelprimaryschool teachers tobecomePAUDteacher; (3)establishingPAUDDevelopmentCenterineachprovince.ThiscenterwilldesignPAUDpilotprojectsandStudyActivitiesStudio(SanggarKegiatanBelajar/SKB),bothofwhichshallbethereferencetoestablishPAUDbytheRegionalGovernment.

47 52.5 54.662.9

6 8.5 8.9 9.6

9.76.8 6.6

6.1

23.8 20.3 20.1 19.8

22.7 16.7 1614.2

66.1 66 65.8 65.5

20.6 24 22.8 16.74.2 5.1 5.1 4.1

2015 2016 2017 2018 2015 2016 2017 2018

5yo 6yo

InPreschool InPrimarywithoutPreschool inPrimaryeverPreschool NotinSchool

84

B. Challenges

a. FulfilmentofEducationalAccess

Underprivilegedchildrentendnottocontinueschoolingandstopgoingtoschoolatsecondarylevel.Intervention,partisanshipanddistributionofeducationassistancefor children from disadvantaged families have not been effectively executed. Intertiary education, the gap of education between economic status is still vast.Provisionofhighereducationserviceshavenotfullybeenabletoreachpeoplefromlowsocio-economicstatusbackground.

The handling of OOSC has been facing some problems. Low cross-sectorcoordination has caused the efforts to minimize social, economic, cultural andgeographical barriers-that cause school age children to be unable to accesseducationalservice-tooperatesub-optimally.Furthermore,theattemptstohandleOOSCthathavebeenundertaken,havenotbeenaccommodativeenoughtoaddressvariousneedsandissuesthatarefacedbychildren(suchasdisabilitiesandspecialneeds, homelessness, lawsuit, child marriage or teenage mothers and workingchildrenorchildlabor).

The implementation of inclusive education in Indonesia also still faces somechallenges, for instance, not all schools are ready to accept childrenwith specialneeds.Schoolsdonothaveteacherswithspecialbackgroundstohandleandguidestudentswithdisabilities.Inaddition,socialinfrastructureandfacilitiesinschoolsare still very lacking, so that they cannot fully support the implementation ofinclusiveeducation.Duetothelimitationsofthesupportinginfrastructure,manychildrenwithdisabilitiesare forcedtogotoschool ina locationfarenoughfromtheirhome.

Indonesia has aMinister for EducationRegulationNo. 70 Year 2009 concerningInclusiveEducationforchildrenwithdisabilities,specialintelligence,specialtalentsandaMinisterforResearch,TechnologyandHigherEducationRegulationNo.46Year2017concerningSpecialEducationandSpecialServiceEducation.Challengesinimplementinginclusiveeducationarestilllimitedininclusiveschools.However,efforts tocarryouta jointmovementtorealize inclusiveeducationcontinue.Forexample,theSouthSulawesi,EastNusaTenggaraandPapuaProvincialGovernmentconductedanassessmentandadvocacyforbeneficiarieswithdisabilitiesinschoolage.Importantthingsthatneedtobedoneinthefutureare:(1)Strengtheningthepartisanship of the regional government through affirmative policies; (2)Strengthening the movement and participation of People with DisabilitiesOrganizations; (3)Preparationof thepublic to live co-existwithand respect therightsofpeoplewithdisabilities.

b. QualityofLearningandTeaching

Provisionoffacilitiesandteacherdirectivestosupportimprovementinthequalityofeducationhasnothadsignificanteffectonstudentlearningoutcomes.Thiscanbeseen from the PISA and INAP data in 2015, which shows that there was a lowproportion of students achieving a minimum competence in mathematics andreading. Another challenge is related to certified teachers, inwhich therewas a

85

decrease in the number of certified teachers in every level of education. It issuspected that such phenomenon happened because the previous method ofcertificationwas conducted for9days,while the currentmodel is theEducationProgramforTeachingProfession(ProgramPendidikanProfesiGuru/PPG)spanningover6months.

Intermsoffuturecurriculumdevelopment,theprocessneedstobemoreinclusiveand collaborative in order to produce a curriculum that is flexible to children’sabilitiesandinterests.Learningassessmentshouldbedirectedtowardsprovidingfeedbackforformulationoffuturelearningstrategies.

c. Skills,VocationandEmployment

Although the opportunity to receive vocational education-including vocationalcourses-hasexperiencedanincrease,whenitcomestoemployability,thereisstillmuch effort and hard work required in order to improve educational service.Althoughthetrendtendstodecline,theIndonesianlaborforceisstilldominatedbygraduatesofjuniorsecondarylevelandlower.Anotherchallengerelatedtoyouthparticipation in education is large disparity between disabilities group and non-disabilitiesgroup.

Receiving higher education does not necessarily guarantee higher workingopportunity. This viewmay result in reluctance of youths to continue pursuinghigherlevelsofeducation,asthebenefitreceivedmaynotbeworthwhilecomparedtothecost,timeandeffortthathavetobespent.Althoughseniorsecondarylevelgraduatesgenerallywouldonlyworkasunskilledlaborersorlow-skilledlaborers,for somepeople, thecruxof thematter ishow theymaystartworkingandearnmoneyassoonaspossible.

d. Strengtheningof1YearPre-PrimaryEducation

Somechallengesthatarestill faced indevelopingpre-primary levelofeducation,are:(1)limitedcoordinationamongPAUDbodiesinvariousministries(MinistryofEducation and Culture; Ministry of Religious Affairs; Ministry of Village,Development of Disadvantaged Regions and Transmigration) and with regionalgovernments; (2) lack of policy synchronization pertaining to teachers’development; (3) lowwelfareofPAUDteachers; (4) lackofassurances forPAUDteachers’certifications;(5)lackofeffectivepartnershipbetweenparentsofPAUDstudents and the school; (6) low level of education, interest and economyof theparents; and (7) cultural factor where values in the society do not encouragechildrentostudyinPAUD.

C. TheWayForward

BasedontheGovernmentAnnualWorkPlanDocument,thepolicydirectivesforthedevelopmentofeducationin2019andbeyondareasfollows:1. Tooptimizeaccesstoeducationalservices,thefollowingeffortswillbetheprioritytoincrease the equal distribution in all levels and acceleration of implementation ofCompulsory12YearsofLearningforall:a)givingeducationassistancetochildrenfromdisadvantaged families, affirmative regions and high-achieving students; b)

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equalizationofeducationalservicebetweenregions,especiallytowardsregionswithlowfiscalcapabilityandeducationperformance;c)implementationofservicemodelsuitedforfrontier,outermost,anddisadvantagedregions,suchasintegratededucation(one-roof school/SATAP), open schooling, long-distance learning and boardingschools;d)managementofOOSCtoreturntoschoolthroughaccuratedatamapping,effective outreach and mentoring, revitalization of back-to-school movements andeffectivelearningmodelforchildrenwithspecialneeds,childrenfromremoteareas,childrenfacingthelaw,abandonedchildren,streetchildren,childreninpost-conflictanddisaster-strickenregions;e)increasingtheintakecapacityoftertiaryeducation;f)increasing the understanding and the role of families and society regarding theimportanceofeducation;andg)increasing1yearpre-primaryservice.

2. Improving learning process and academic quality through strengthening qualityassurance, strengthening the education grading system to be more credible andcomprehensive, education management based on education unit, strengtheningcurriculum implementation and character development, as well as teachingunderpinnedbylocalcontext.

3. Improvingthequalityanddistributionofteachersandeducationpersonnelthroughdistribution of educators, education and training for educators, educators’performanceassessmentandcertification.

4. Improving the quality of Institutes for Education Personnel Training (LembagaPendidikan Tenaga Kependidikan/LPTK) as an institution responsible for teachers’education (prior to taking office and during tenure) in order to produce qualifiedteachersthroughTeachingProfessionEducation(PendidikanProfesiGuru/PPG).

5. Improvingthedistributionofgoodqualitytertiaryeducationserviceandenhancingtherelevanceoftertiaryeducation.

6. Improvingtheaccessandqualityofpre-primaryeducation(PAUD),andencouragingtheimplementationofholistic-integrativePAUD.

7. Improvingthequalityofcommunityeducationthrougheducationandtrainingonworkproficiencyandentrepreneurship,literaryeducationandequivalenteducation.

8. Improvingthequalityofreligiouseducationservices.9. Improvingtheeffectivenessofnationalandsubnationalbudget,andencouragingtheimprovement of subnational governments’ commitment in the implementation ofqualityeducationservices.

Furthermore,educationpersonnelsurveyisneededinordertoidentifytheneedsofteacher trainings pertaining to the new curriculumwith an emphasis on the studentlearningprocess.The training shouldbemoreactive, interactive, engagehigherorderthinkingskills(HOTS)andeasilyaccessiblebyteachers.Principalsmustsetatargettoimprovestudentparticipationandachievementinreadingandmathematics,basedonthediagnosisbyclassteachersonthosecorecompetencies.Thesetargetsmustbecollatedinto the developmentwork plans of regional governments as reference for resourcesallocation. This effort is needed to devise programs in the targetedprovinces/cities/districts to ensure that all schools achieve the agreed minimumstandardofservice,particularlythequalityoflearning.

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Toaddressimportantandurgentchallengesinearlychildhoodeducation(ECE)theGovernmenthasformulatedprogramsandactivitiessuchas:(1)strengtheningtheroleofstudents,teachers,educationpersonnel,parentsandeducationauthoritieswithintheeducationsystem,(2)improvingtheaccesstowardsPAUDandcommunityeducation,(3)improving the quality and relevance of PAUD learning process, oriented towardscharacterbuilding,(4)improvingtransparencyandaccountabilityofPAUDgovernancesystembyinvolvingthecommunity.

D. LessonsLearned

Obstacles towards the access to education consist of various complex factors,related to socio-economic status, geography, disparity of regional development anddisabilities.Assuch,theGovernmentaddressestheseissuesbyimplementingintegrativeandaffirmativeactionstoaccelerateuniversalaccesstoeducation,especially inseniorsecondary level education. Through Universal Secondary Education (PendidikanMenengahUniversal/PMU)program,theGovernmenthasbroadenedtheaccesstoseniorsecondaryschoolbybuildingnewschoolsespeciallyinthefrontierregions.Toovercomefinancialobstacles,theGovernmenthaslaunchedIndonesiaSmartCard(KIP)program,directedtochildren6-21yearsoldfrompoororvulnerablefamilies,includingchildrencurrentlynotinschoolbutwishingtoreturntoschool.Inordertopreventchildrenfrombeingunabletocontinuegoingtoschool, thegovernmenthasincreasedtheamountofSchoolOperationalFund(BOS)whichisgiventotheformalandnon-formalschoolsofalllevels. Asmost non-schooling children are unable to pursue secondary education, theGovernmenthasstrengthenedtheimplementationofOneRoof(SATAP)programinruralandremoteareastoeasethetransitiontojuniorsecondaryschool.Toreducethenumberofschoolquittersduetochildlabor,theGovernmenthasimplementedReductionofChildLabor–HopeFamilyProgram(PPA-PKH)aimed to returnchild laborers toeducationsuitedtotheirlevel.ThegovernmenthasalsobroadenedtheimplementationofInclusiveEducation program to facilitate the provision of educational service for childrenwithspecialneeds.

Thenumberofvocationalsecondaryschoolgraduateswhopossessexpertiseandreadytoworkmustbeincreasedasthedemandofbusinesssectorforskilledlaborisveryhigh. To improve the quality of learning process in vocational secondary schools,increasedfundingandbettermanagementisneeded.Besidesthat,thenetworkbetweenvocationalsecondaryschoolsandbusinesssectorsmustalsobestrengthened.

4.1.2 Goal8.DecentWorkandEconomicGrowth

This section consists of the progress of various indicators of SDGs Goal 8. It isfocused on indicators e.g. economic growth, labor productivity, informalities,employment for all, youth unemployment, child labor and decent work indicators.Additionally, it also covers the tourism sector and financial inclusion efforts that areimportanttocreatejobs,promoteslocalculture/productsandincreasefinancialaccessforall.

This sectionwill bedivided into fiveparts. The first part is about the trend andanalysisregardingindicators’developmentovertimeaswellassomehighlightedissues.Thesecondpartdiscusseschallengesandproblemsthatencapsulatethegovernment’sremainingobstacles.Thethirdpartdiscusseskeyeffortsfromthegovernmentandgood

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practicesfromtheprivatesectors,aswellashighlightingsomesuccessstories.Finally,the last two parts will discuss future policy direction and lessons learned forrecommendationsandfuturedevelopment.

A. TrendAnalysis

1. SustainedandInclusiveEconomicGrowth

In2015-2018,Indonesiahasachievedastableeconomicgrowthof5%andrealGDPpercapitagrowthof3,74%onaverageFigure39.RealGDPpercapitagrowthreacheditshighestrateat4.6%in2011butfellto3.5%in2015.However,itstartedtopickupinthenextthreeconsecutiveyearsto4%in2018.

Figure39.RealGDPperCapita(millionIDR)andRealGDPperCapitaGrowth(%)

Source:StatisticsIndonesia

Inthelastfouryears,economicgrowthhascontributedtoalowerpovertylevel,aswell as reduced unemployment rate and inequality. In September 2018, poverty ratedeclined to 9.66%, equivalent to 25.67 million people living in poverty. Theunemploymentratedeclinedto5,3%in2018.ThispositivetrendisalsoinlinewithanimprovementinGiniratioto0.384asofSeptember2018,downfrom0.391inSeptember2017.Insummary,Indonesia’seconomicgrowthhasbeenmoreinclusiveinrecentyears.

CurrentPolicies,Efforts,andBestPractices

Creating Jobs through Better Business Climate. Indonesia has taken seriousefforts to increase its business climate to attract investment. The government hasestablishedaspecialtask-forceunderCoordinatingMinistryofEconomicAffairstoleadderegulation efforts. Until 2018, the government has introduced 18 economic policypackages which consist of tax incentives, liberalization, facilitation, and regulatoryharmonization.Inthe2019EaseofDoingBusinessIndex,Indonesiaranks73rd.Although,it moved down one place from 72nd in 2018, the latest report highlights severalimprovementssuchassubstantialreforminstartingbusinesses,registeringpropertyandgettingcredit.

Vast Investment in Infrastructure. The government encourages equalinfrastructuredevelopmentamong regions to achieve inter-region connectivity. In thelast ten years, the infrastructure gap has hampered Indonesia’s economic growth

28.8 30.1 31.5 32.8 34.0 35.2 36.5 37.9 39.3

4.6 4.54.1

3.6 3.5 3.7 3.8 3.9

0.0

1.0

2.0

3.0

4.0

5.0

0.0

10.0

20.0

30.0

40.0

50.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

GDPperCapita(inmillionIDR) GrowthofGDPperCapita(%)

89

resultinginahigh-costeconomyandinefficientlogistic.Italsocontributestoincreasingprices,whichhurtthepoor.Thegovernmenttookadrasticcutonfuelsubsidytofundinfrastructure development. In 2019, the infrastructure budget has reached IDR 415trillionor17%ofthetotalbudget.ThisinvestmentresultedintheimprovementontheLogisticPerformanceIndexinrecentyears.

One of the most ambitious projects is the Palapa Ring project which aspires toconnect 514 regencies and cities through a broadband connection. The Palapa Ringprojectaimstoprovidefastercommunicationservicesthroughoutthecountryby2019toaddresstheenormousdigitaldivideinthecountry.ThePalapaRingprojectisestimatedtocostIndonesiaaroundUS$1.6billion.Hopefully,themega-projectcanbecompletedontime,sinceithasbeenexperiencingseveral interruptionssinceitsconceptionin1998.ThePalapaRingcanpotentiallyreducethedisparitybetweeneastandwestIndonesiaintermstotalandanyspatialdisparitythroughvirtualconnectivity.

2. ProductivityImprovement

Likeanyotherdevelopingcountries, Indonesia isundertakingongoingstructuraltransformationfromagriculturetomanufacturingandservices.AccordingtoFigure40,thestructuresofemploymentinIndonesiahaschangeddrasticallyinthelasttwodecades.There was a significant decrease of employment in agriculture from 40% in 2010 to28.8%in2018.Thetransitionhasbeenfasterinthelastfouryears.Serviceshavegrownrapidlywhilemanufacturingismorestableat12-14%oftotalshareofemploymentinthelasttenyears.

Figure40.ProportioninTotalEmployment(%)


AccordingtoGDPgrowthperemployment,theproductivityofworkersinIndonesiafluctuatedintherangeof1.9–7%inthelasteightyears.In2018,itsloweddownto2.6%from2.8%in2017.However,thistrendalsohappenedtootherASEANcountries.UsingGDPperpersonemployedisgrossdomesticproduct(GDP)with2011PPP,IndonesiawassecondonlytoVietnamin2018(Figure41).

- 10.020.030.040.050.060.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Agriculture Industry Services

90

Figure41.RealGDPGrowthperEmployment(%)andGrowthofGDPperpersonemployedusingPPP(%)

Source:StatisticsIndonesiaandWorldBank

3. StrengtheningFormalEmployment

Informaleconomyisbothablessingandacursefortheeconomy.Althoughinformalworkersfacehighuncertaintyandthereforehasalowjobsecurity,theinformalsectorabsorbsasignificantnumberofemployeesandcushionedthenegativeeffectofeconomicslowdown.Figure42belowshowsthatthetrendofformalemploymentisupwardfrom42.2%in2015to43.2%in2018.Favorableeconomicconditionshavegeneratedmoreformal employment and benefited workers. Gender gaps in the share of formalemploymenthaveslightlywidenedintherecentyears.

Figure42.ProportionofFormalEmploymentbySex(%)


Thegrowthoftheservicesectorandexpansionofformalemploymentthereinhavedriventherecentincreaseinformalemployment.Employmentintheagriculturesector,where almost nine out of ten jobs are informal, has shrunk relative to othermodernsectors. Aworrying trend is an increase in the share of informal employment amongwomen,whichhaswidenedgendergapsintheincidenceofinformalemployment(Figure43).Notethattheproportionoftotal informalemployment intheagriculturesector istwiceashighasinnon-agriculturesector.

-2.0

-1.0

0.01.02.03.04.05.06.07.08.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Indonesia MalaysiaPhilippines ThailandVietnam

6.95

1.23

5.32

3.31

4.62

1.85

2.8 2.64

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2011

2012

2013

2014

2015

2016

2017

2018

32.2

37.839.8 39.9 40.6 42.2 42.4 43.0 43.234.3

40.242.8 43.0 43.5 44.9 45.0 45.7 46.3

28.6

33.5 35.1 34.8 35.9 37.8 38.2 38.6 38.2

20

25

30

35

40

45

50

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Men Women

91

Theinformalsectorinruralareaisalsosignificantlylargerthanurbanareabecauseagricultureisthedominantsectorinruralarea.Therefore,womeninruralareahaveahigher probability to take jobs in the informal sector. This has been amotivation formigrantworkers.AccordingtotheNationalBoardforthePlacementandProtectionofIndonesianOverseasWorkers (BNP2TKI),60%ofmigrantworkers, especiallywomen,areexposedtounsafemigration,humantrafficking,limitationofaccessofinformation,andvulnerabletoextremismandradicalism.However,thesafetyandproperconductofmigrationaretherightsofeverycitizen.Bothdocumentedandundocumentedmigrantworkersaresubjecttonationalprotection.Lastly,Papua,NusaTenggaraBaratandNusaTenggaraTimurhavethelargestinformalsector,especiallyinagriculture.

Figure43.ProportionofInformalEmploymentinAgriculture(left)andNon-agricultureSector

(right)byGender(%)Source:StatisticsIndonesia

InformalityalsohasastrongcorrelationwitheducationlevelasshowninFigure44below.Itshowsthat66%ofworkerswithelementaryschoolbackgroundareemployedin non-agriculture informal sector, whereas less than 20% workers with tertiaryeducationarein informalemployment.Thistrendhasbeenquitepersistent inthelastfouryears.Onecanconcludethatimprovementineducation,especiallylongeryearsofschooling among youth, has been another driver of reducing informal employment inIndonesia.

87.188.6 89.5

88.3

83.785.3 85.7 85.2

93.2 94.3 93.6 93.8

75

80

85

90

95

100

2015 2016 2017 2018

Total Men Women

43.4 43.1 43.8 44.140.7 40.0 40.3 40.1

47.8 47.8 49.0 50.2

30

35

40

45

50

55

60

2015 2016 2017 2018

Total Men Women

92

Figure44.ProportionofInformalEmploymentinNon-agricultureSectorbyEducation(%)


4. FullandProductiveEmployment

Theunemploymentrateisdowntoarecordlowat5.3%in2018.Thereisalsoasignificant improvement onwomen’s unemployment, as it has declined from 6.4% in2015to5.3%in2018.In2018,laborforceparticipationforwomenhasslightlyincreasedto51.88%from50.9%in2017.Thisnumberhasstagnatedsincethelastdecadeandthereisstillasignificantgapbetweenmenandwomen,sincelaborparticipationrateformenis at82.7% in2018.By location,unemployment in rural is relativelyunchanged from2017 to 2018. Urban unemployment is still the largest contributor for totalunemployment,butthetrendhastaperedinthelastfouryears(Figure45).

Figure45.UnemploymentRatebySex(left)andLocation(right)


Basedoneducationalbackground,peoplewithsecondaryeducationhasthehighestunemploymentrateat7.6%in2018Figure46.However,thistrendhasbeendeclining

67.7 66.0 66.7 66.4

52.9 52.9 52.6 53.7

34.2 36.1 37.0 37.726.8 30.4 29.1 31.2

14.8 18.3 17.7 18.88.2 10.0 10.5 11.5

01020304050607080

2015 2016 2017 2018

Elementary Secondary High school

Vocational school Diploma University

7.07.5

6.1 6.2 5.9 6.25.6 5.5 5.3

6.16.7

5.8 6.0 5.86.1

5.7 5.5 5.4

8.58.9

6.76.4 6.3 6.4

5.4 5.4 5.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Men Women

7.07.5

6.1 6.2 5.9 6.25.6 5.5 5.3

9.3 9.4

7.77.3 7.1 7.3

6.6 6.86.5

5.4 5.6

4.65.1 4.8 4.9

4.54.0 4.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Urban Rural

93

sincethelastfouryears.Thegovernmentiscommittedtorevitalizevocationalschoolsasoneofthestrategiestofurtherreducethisunemploymentrate.Theproblemisthattheunemployment rate for the most educated ones, college/university graduates, areincreasing from 5.1% in 2016 to 5.9% in 2018. This indicates that the curriculum incollege/universitydoesnotmeetindustryneeds.

Indicatorsofproductiveemploymentforallalsoincludestheunemploymentrateofpersonswithdisability. In Indonesia, the right towork forpersonswithdisabilities isenshrined intheLawNo8/2016onDisability.However, therearestillbighurdles forthemtoparticipate inthelabormarketnamely(1)accesstoeducationsincetherearemanydisabledchildrenunabletogotoschool.Accordingtotheministryofeducation,there are 1.6 million disabled children in Indonesia but only 18% enjoy access toeducation, (2) empowerment of people with disability that are not in line with theirinterestsandskills,(3)lackofaccessibilityinpublicfacilities.Forexample,inAceh,thereare 37 public buildingwhich accommodate accessibility element butwith insufficientcondition.Figure46showstheunemploymentrateamongpersonswithdisabilitywithnodifficultiesispersistentat5.6%in2018.However,unemploymentrateamongdisabledpersonswithmoderateandseveredifficultieshavefallento2.6%in2018comparedwith3.5%in2017.

Figure46.UnemploymentRatebyEducationBackground(left)andPersonswithDisabilities

(right)Source:StatisticsIndonesia

UnderemploymentinIndonesiaisdefinedasnumberofpeopleworkinglessthan35hoursperweek.Indonesiachartedaconsistentdeclineinunderemploymentrateoverthelastfouryears,reaching6.6%in2018.Forbothmenandwomen,thetrendstendtoconverge, leaving insignificant gender gaps. Note that men have a higherunderemployment rate than women in Indonesia. Figure 47 also shows that theunderemploymentismorefrequentlyobservedinruralareas(9.3%)thanurbanareas(4.3%)in2018,althoughtrendsaredownwardinbothareas.

3.24.0

2.6 2.6 2.21.3 1.5 1.6 2.0

5.43.9 4.2 4.0 3.6 3.9 3.9 3.6

2.8

11.711.1

8.9 9.1 9.0

11.29.6 9.5

7.6

2.0

8.8

6.0 5.5 5.86.7

5.1 5.6 5.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

No education Primary School

Secondary School College/university

3.13.5

2.6

5.8 5.7 5.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2016 2017 2018

Moderate/severe difficulties

No difficulties

94

Figure47.UnderemploymentbySex(left)andLocation(right)


TheaveragehourlyearningshaveincreasedfromIDR11,389in2015toIDR15,318in2018(Figure48).Althoughthegrowthhassloweddowninthepasttwoyears,itisstillhigherthantheyearlyinflationrate.ItmeansthatIndonesianworkerscanstillmaintainpurchasingpower.However,thedifferencebetweenmenandwomenintermsofaveragehourlyearningsisstillquitepersistentandhaswidenedfrom2015to2018.

Figure48.AverageHourlyEarnings(IDR)


Otherthanthegendergapinearnings,thereisasignificantdifferenceinaverageearningspaidbyMicroandSmallEntreprises(MSEs)andMediumandLargeEntreprises(MLEs)andminimumwagesacrosstheregions.Accordingtothe2016EconomicCensus,MLEsgiveIDR47.8milliononaveragewhileMSEsgiveIDR16.7million.Inotherwords,

13.3

11.210.6

9.2

7.98.5

7.6 7.6

6.6

12.3

10.39.9 9.8

8.08.4

7.6 7.56.8

14.9

12.711.8

8.1 7.98.6

7.5 7.7

6.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Men Women

13.3

11.210.6

9.2

7.98.5

7.6 7.66.6

7.68.4

6.2 5.95.0

5.5 5.1 4.94.3

17.4

13.914.8

12.2

10.811.7

10.3 10.5

9.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Urban Rural

8462 9001

1166210860 11389

1388814764 15318

14.93

6.37

29.56

-6.88

4.87

21.95

6.303.75

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2011 2012 2013 2014 2015 2016 2017 2018

Average hourly earnings

Growth of Average hourly earnings

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2010 2011 2012 2013 2014 2015 2016 2017 2018

By Gender

Men Women

95

workersinMLEsearnalmostthreetimesmorethanMSEs.Inaddition,Figure49providesacomparisoninminimumwagesacrossregionsinprovincesinIndonesia.ThehighestoneisJawaBarat,thedifferencebetweenthehighestandlowestregionalminimumwageis IDR 2.4 million. These disparities call a more equal policy regarding wagesdetermination.

Figure49.MinimumWageAcrossRegionsandMSEandMLEComparison

Source:MinistryofManpowerand2016StatisticsIndonesiaEconomicCensus

Table2.MicroandSmallEntreprisesandMediumandLargeEnterprisesComparison

Source:MinistryofManpowerand2016StatisticsIndonesiaEconomicCensus


ReducingRural-Urban Inequalities.Thegovernment is committed to attainingmore inclusive growth and sustainable livelihoods such as productive economiccommunity empowerment, access, facilitation and partnership. One of the keyinnovationsisvillagefund(danadesa)astheimplementationofUUNo.6/2014regardingthedelegationofresponsibilitybythecentralgovernmenttovillage-levelgovernment.Themotivationistoreducethenumberorunderdevelopedvillagesby5000villagesin2019. In 2015, the government distributed IDR 20.8 trillion, and tripling in the 2019budgettoaboutIDR73trillion.Onaverage,eachvillagewillgetalmostIDR1billionin2019.Thisfundaimstoempowervillageswithimprovedinfrastructureanddevelopmentprogram.Forexample,developmentofproductiveeconomicenterprises,improvementofbasicservices,especiallystuntingandnutritionservicesforchildren,aswellasfinancing

15442099

1486 1509

2564

3919 3622

2310

3583 3523

2375

1523824

2074

960

0

1000

2000

3000

4000

5000

WestJava Banten CentralJava EastJava RiauIsland

MinimumWagesComparisoninProvinces

MLE MSE Deviation

CriteriaMicroandSmall

Entreprises

MediumandLarge

EntreprisesNumberofFirms(million) 26.1 0.35NumberofEmployment(million) 59.2 19.4

UnpaidEmploymentperFirms 1.25 0.28

EmploymentperFirms 2 56AverageEarningsofPaidEmployment(IDRmillion) 16.7 47.8

96

cash-intensiveactivitiestocreatetemporaryemploymentopportunitiesforthepoor.Thiseffortissupportedbyamechanismofguidanceandsupervision,aswellasfacilitationtoensuretherightdirectionofuse.

Inaddition,therearealsoStrategicPartnershipbyICBDA/SAA,AIP-PRISMA.Thisprogramaimstobenefit1,000,000smallholderfarminghouseholdsineasternIndonesiain 2019 – 2023 by improvingmarket efficiency. Therefore,more value added can bedistributedamongsmallholderfarmersandcreatemorejobsinagriculturalsector.

Box20.ProgramforReducingRural-UrbanInequalities(MigrantWorkerFriendlyVillages/Desbumi)

InthemeansofimplementingSDGsGoal8ofDecentWork,MigrantCare,supportedbyMAMPU(Indonesia-AustraliaPartnershipforGenderEqualityandWomenEmpowerment),encouragestheinstitutionalizationofprotectiontowardsIndonesianmigrantworkersinvillagesthroughDESBUMI.DESBUMIalocalinitiativetourgetherealizationofprotectionformigrantworkers,especiallyvillagewomen.Locatedin37villagesand7provinces(13inCentralJava,12inEastJava,1inWestJava,5inWestNusaTenggara,6inEastNusaTenggara),DESBUMIhelpsmigrantworkerstogoandworkabroadinthewayit isregulated;therefore,theycanbeguidedandhelpedwhentheyaremistreatedinthecountriestheyareworking.DESBUMIisalsogender-responsiveandbringspositiveenergyfrommigration’spotentialasanimplementationofLawNo.18Year2017aboutIndonesianMigrantWorkersProtection.

DESBUMI provides services that support the implementation of SDGs. The EconomicEmpowermentProgramisoneofDESBUMI’sservicesthatisinlinewithSDGsGoal8(promotesustainable,inclusive,andsustainableeconomicgrowth;fullandproductiveemployment;anddecent work for all). DESBUMI supports groups of former migrant workers to build jointventures. It isexpectedthatthisprogramcouldaddressthefifthtargetofachievingfullandproductiveemploymentanddecentworkforallwomenandmen,includingforyoungpeopleand persons with disabilities, and equal pay for work of equal value. The EconomicEmpowerment Program also aims to reduce the proportion of youth not in employment,education,ortraining.

DESBUMIhelps ineconomicempowermentso that formermigrantworkerscangrowtheirbusiness and be able to maintain their economies after no longer being migrant workers;especiallyforwomenwhoaccountedformorethan60%ofmigrantworkers.Inlaterstage,theyareexpectedtotakerolesinprovidingemploymentservicesforthenextyounggenerationsothatthosewhohavedifficultyingettingeducationareemployed,andthosewhodonothavejobscanalsowork.Intheend,allthoseeffortsbythemigrantworkersareenvisionedtoleadtoproductiveemploymentanddecentworkforall;aswellasequalpayforworkofequalvalueinthefuture.

Source:MigrantCare

NationalNon-DiscriminationMovementintheWorkplace.ThegovernmenthasaffirmedthecommitmenttocreatedecentworkforwomenIndonesiahasimplementedtheGenderEqualWageEqualizationGuidelinesintheWorkplace.Also,IndonesiahasalsoestablishedtheTaskForceforEqualEmploymentOpportunity(EEO)andcontinuedtoincreasethecapacityandconcernofgovernmentofficialsandotherstakeholdersintheimplementationofEEO.TheprovincialEqualEmploymentOpportunity(EEO)TaskForceisexpectedtoplayanactiveroleindisseminatinginformationrelatedtoEEO.TheTask

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Force is also expected to raise the awareness of bothworkers and employers on theapplicationofnon-discriminationandequalityattheworkplace.

CreativeEconomyand“MakingIndonesia4.0”.Inthelighttofindanewsourceof growth, the government established the Creative Economy Agency (Bekraf) as theagency task to advance anddevelop theCreativeEconomy sector in Indonesia. ItwasformedundertheRepublicofIndonesia’sPresidentialRegulationNumber6of2015.

The government of Indonesia also launches "Making Indonesia 4.0" as a newinitiative toboost Indonesiaeconomicgrowthand revitalize themanufacturing sectorthroughtheadoptionofIndustry4.0.AfullimplementationofIndustry4.0until2030isexpected to 1) increase GDP growth between 1-2% per year, 2) create additional 10millionjobs,3)increasetheshareofmanufacturingPDBtobecomemorethan25%ofthetotalPDB,4)increasenetexportto10percent,5)increaseproductivity-to-costbytwofolds,and6)increaseinnovationcapabilitysupportedby2percentgovernmentspendingonRandD. The implementation of Industry 4.0will be focused on food and beverage,textileandapparel,automotive,electronicsandchemicalsubsectors.

5. EmpowerYouthforWork

Despiteachievingrecord-lowunemploymentrate,youthunemploymentisstilloneofthemajorconcernsforthegovernment.Althoughtheratehasbeendeclininginthepastnineyears,IndonesiastillhasthehighestyouthunemploymentinASEAN.In2018,almost20%ofyoungpeople(15-24yearsold)wereunemployed.Inaddition,theincidenceofyouthnotinemployment,educationortraining(NEET)remainhighabove20%,22.5%in2018.Oneofthepossiblereasonsforthistrendisthelongtransitionbetweenleavingschool and their first job. This is particularly the case amongst youth with tertiaryeducationwhoaspiretofindasuitablejobbeyondwhatthelabourmarkethastooffer.Thegovernmenthastakenthisissueseriouslyandintervenedtofacilitateschool-to-worktransition of youth. For instance, the government has increased vocational trainingbudgetandpromotedofwork-basedlearning,includingapprenticeships.

Figure50.YouthUnemployment(%)andNEET(%)


26.9

32.2

26.328.5

30.3 31.128.1 27.5 26.7

17.2 16.915.3

17.1 17.519.0

15.8 16.6 16.7

8.9 8.1 7.3 7.4 7.3 8.1 7.1 6.8 7.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Youth Unemployment per Age Group (%)

15-1920-24

25.6 25.223.2

25.223.5 24.8 23.2

21.4 22.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

NEET (%)

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RevitalizationofVocationalEducationandTraining.PresidentialInstructionno.9 the Year 2016 on the revitalization of vocational high schools, aims to improve thequalityandcompetitivenessofhumanresourcesinIndonesia.Thepresidentinstructedtherelevantministries/agenciesandlocalgovernmentstoperformtheirtasks,functions,and authority to revitalize vocational high schools to improve the quality andcompetitiveness of Indonesian human resources and to prepare a roadmap of labourdemandforvocationalhighschools.Thegovernmentalsofocusesonvocationaltraining,i.e.tripleskillingprogram(skilling,upskillingandreskilling)throughvocationaltrainingcenters(BLK).From2015toOctober2018,theparticipantsalreadyreached382,132fortraining, 149.064 for internship and1.349.559 for certificationprogram.Moreover, toincreasetheproximityofthevocationaltrainingcenters,thereare75communitytrainingcenters(BLKKomunitas)in2018.

Thereisalsoanimprovementinthenumberofmid-skilledworkers.In2014,theproportion of mid-skilled workers were 30.48%, and increased to 31.14% or 38.62millionmid-skilledworkersin2018.Thetargetfor2019is37%.Thisimprovementisalsosupported by training and certification programs. According to Ministry of NationalDevelopment Planning, the numbers of participants for training and certificationprogramsin2018hasreached673,920and557,060respectively.

Box21.AstraandtheDevelopmentofVocationalEducationandTrainings

VocationaltraininghasbeenoneoftheprioritiesinbuildingthequalityofIndonesianyouths.SDGGoal 8 aims to substantially reduce theproportionof unemployedyouthswhoarenotexposed toeducationor trainings.AstraHondaMotor (AHM)has constantlyparticipated inimproving vocational education in Indonesia. In 1995, AHM (previously known as FederalMotors) established Yayasan Federal Bina Ilmu (Federal Foundation of Sciences) whichsupervisedtheAkademiTeknikFederal(Federal’sTechnicalAcademy)asmeanstosolvetheneedsforskilledworkers,especiallyinthemotorbikeindustry.Then,theFederalFoundationof Sciences transformed into Astra Manufacturing Polytechnic (Politeknik ManufakturAstra/Polman).

BesidesPolmanAstra,AHMhascontributedinvocationalschoolsdevelopmentbycreatingtheTechniquesandIndustryofMotorbikesCurriculum(TeknikdanBisnisSepedaMotor/TBSM)AstraHonda in34provinces in Indonesia since2010.Around686 schools are coachedandtrainedspecificallybyAHMinordertoproducegraduatesthateithercouldlinkandmatchintheindustryworldorbuildtheirownbusinesses.Thiscoachingandtrainingarefacilitatedby59CompetencyTestCenter(TempatUjiKompetensi/TUK)thatspreadalloverIndonesia.AHMalso provides scholarships for outstanding individuals. The TBSM Curriculum providestrainings and certifications for teachers in order to increase the quality of the students.Moreover, AHMprovides textbooks,motorbikes, and special tools for practical studies. Thecompanyalsohelpsthestandardizationofschools’laboratoriesinordertolookliketheexactAHMauthorizedrepairshops.

Apartfromskills,studentsarealsosuppliedbycharacterbuildingsfromvarioussourcessuchasAstra’smentors,lecturers,andseniors.Itisexpectedthatoncethegraduatesenterthelabor

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market, theyarereadyandwouldeasilyadaptwith theirworkenvironments.Collaboratingwith main Honda motorbike dealers, this curriculum gives opportunities for students toexperienceworkenvironmentthroughinternshipprograminAstraHondaAuthorizedServiceStation(AHASS).Around46 thousandsofyouthhasexperienced this internshipprogram in2017-2018.

Since2016,AHMpartneredwiththeMinistryofIndustrytointensivelysupportthequalityofvocationaleducationthataimstomeettheneedoftheindustrialworld.Throughthe“LinkandMatch”vocationalprogram,therehavebeenmorethan100pilotprojectvocationalschoolsinEast Java, Central Java, Yogyakarta, West Java, Jakarta, Banten, Jambi, South Sumatera,Bengkulu, Bangka Belitung, Lampung, and northern Sumatera. So far, there have been sixcollaborationsbetweenAHMandMinistryofIndustryforthisIndustrialVocationalProgram.Theprogramisaconcreteproofof the implementationof thePresidential InstructionNo.9Year2016aboutVocationalSchoolRevitalization.

Box22.Enterprise-BasedVocationalEducation(EVE)

PT.SolusiBangunIndonesiaTbk

PTSolusiBangunIndonesiaTbk(SBI)orformerlyknownasPTHolcimIndonesiaisacementcompany in Indonesiawith four plants, i.e. in Cilacap (Central Java), Tarogong (West Java),Tuban (East Java) and Lhoknga (Aceh). As part of its corporate social responsibility (CSR)strategy,SBIhasastrongcommitmenttopromoteemploymentamongyouthsarounditsplantsbyestablishingenterprise-basedvocationaleducation(EVE)PrograminCilacapandTarogongin 2005. The EVE Program is a three-year polytechnic training program with specialty inCementIndustryEngineering.

TheEVEProgram is runbySBI inpartnershipwithcompetentvocationalschool,PoliteknikNegeri Jakarta (PNJ). The goal is to integrate the national curriculum with local contentregulationregarding thecement industry; to trainstudentswithmulti-skills (both technicalskill and leadership)as requiredby industry4.0and toengageyouthsaround theplants toincreasethelocalhumandevelopmentindex.Theprogramconsistsof50%onthejobtraining,20%ontechnicalmodulesand30%onclassroomandsoftskilltraining.Duringtheprogram,thecompanyprovidesfacilities,suchastrainingmaterials,monthlyallowance,protectionkits,insuranceandcertificate.

The EVE Program in two locations until 2018 has resulted in 364 graduates. Among thesegraduates,60%of themworkatSBIplantsand theremainingwork inothermanufacturingindustries.ThepositiveimpactofEVEProgramcanbeseenthroughtheincreasedopportunityinemploymentforyouths,increasedcompanyproductivityduetothepresenceofskillfulandready-to-work labor, and increased opportunity in education. For example, the HDI foreducationofKembangKuningVillageneartheSBIplantinBogorhasincreasedeveryyear:50.0(2014),60.9(2015)and66.0(2016).

ThemajorchallengesthatEVEprogramfacesamongothersarethepotentialgapbetweentheexisting school curriculum content and the industry needs, and difficulty in finding qualitystudentcandidatesneartheplants.TheEVEisinnovativebecauseitissuccessfulincreatinglinkandmatchbetweengraduateswiththeindustry,providingexclusivescholarshipforlocalcommunity,andcreatinginnovativeproductsevenduringtrainingprogram.TheEVEprogramcan be a goodmodel for successful link andmatch vocational education programs, thereby

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increasingemploymentandeducationopportunitiesThisprogramhasbeenreplicatedbyPTBadak NLG and PT Holcim in Vietnam and India. This program also has potential to bereplicatedbyotherindustries.

SupportingDigitalEconomy.TheexpansionofthedigitaleconomyinIndonesiaisapowerfuljobcreator.Todate,Indonesiaishometoonedecacorn,i.e.GOJEKandthreeother unicorns, i.e. Tokopedia, Traveloka, and Bukalapak. A study has estimated thatGOJEKcontributedIDR44.2 trillion,ora littleoverUS$3billion, inaddedvalue to theIndonesianeconomyin2018.Italsoprovidesahighermonthlyincomethantheminimumwage.

Asaresponsetothedevelopmentofdigitaleconomy,thegovernmenthaslaunchedavisiontoestablishIndonesiaasthelargestdigitaleconomyinSoutheastAsia--worthUS$130billionandinvolvestheemergenceof1,000Indonesiantechnopreneursby2020.Especially for the e-commerce sector, the government already released PeraturanPresidenNo.74/2017onE-CommerceRoadmaptofacilitatee-commercedevelopmentinIndonesia.

Box23.GojekandItsImplicationsonEconomyandEmployment

Onlinetransportationhasbeenoneofthemostfrequently-usedmodesoftransportationinthelastfewyears.Thismightbeduetotheefficiencyandpriceofusingtheservices.Gojek,asoneof the online transportation service providers, has developed significantly, currently beingIndonesia’s first decacorn. Based on the recent study by Gojek and Lembaga DemografiUniversitas Indonesia, Gojek contributes Rp 44.2 trillion from driver partners and MSMEpartnersforIndonesianeconomy.TheoverallcontributionconsistsofRp16.5trillionfromGo-Ride,Rp8.5trillionfromGo-Car,Rp18trillionfromGo-Food,andRp1.2trillionfromGo-Life(Go-MassageandGo-Clean).

Fromtheemploymentside,Gojekhasparticipatedinreducingthepressureofunemploymentthroughexpansionofemploymentopportunities.Accordingtodriverpartners,therearethreemainbenefitsbybeingdriverpartnerswhichareflexibleworkinghours,sufficientfundsforfamily, andmore family time. Another caveat found in the study ismore than 70% of Go-MassageandGo-Cleanpartnersarewomenandalmost50%ofthemaremainbreadwinnersintheirfamilies.Thisshowsanincreaseinwomen’sparticipationinbothemploymentanddigitaleconomy.ThissupportstheGoal8SDGtoachievefullandproductiveemploymentanddecentworkforallwomenandmen,includingyoungpeopleandpersonswithdisabilitiesin2030.

Fromeconomicside,GojekhelpsencouragingMSMEstoutilizetechnologyandgoonlinewhichenablethemtohavemoremarketaccess.Asaresult, thereare increases inMSMEs’volumetransactions and business assets. By joining Gojek, partners are also experiencing wageimprovement.Itisreportedthattheyearnmorethantheminimumwage.ThisappliesforGo-Ride, Go-Car, and Go-Life partners in Jabodetabek and outside Jabodetabek. The averageearningsareRp4.9millionforGo-Ridepartners,Rp6millionforGo-Carpartners,andRp4.8million for Go-Life partner in Jabodetabek. Gojek partners are also reported to be moreprosperousandtoexperienceincreaseineconomicmobility.ForGo-Ride,partnersexperience45% increase in earnings and 25% increase in spending since joining Gojek. For Go-Car,partners experience 42% increase in earnings and 32% increase in spending since joining

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Gojek.And forGo-Life, partners experience72% increase in earnings and19% in spendingsincejoiningGojek.GojekhelpscreatedecentjobsandencouragetheformalizationandgrowthofMSMEs.

Partners also showoptimism inpartneringwithGojek.Theybelieve they can support theirfamiliesandsendtheirkidstoschoolbybeingGojekpartners.Additionally,allGo-Ride,Go-Car,andGo-LifepartnersshowspositiveviewtowardspartnershipwithGojekthroughpartnershipagreementandopportunitiestodonegotiationsanddiscussionswithGojekmanagement.

6. EradicationofForcedandChildlabour

To eliminate the worst forms of child labor, the government ratified the ILOConventionNo.182concerningtheProhibitionandImmediateActionfortheEliminationoftheWorstFormsofChildLabourthroughtheissuanceofLawNo.1Year2000.In2015,thegovernmenthaspublishedaroadmaptofullyeradicatechildlaborin2022.However,acccordingtoFigure51,theimplementationoftheroadmapremainsbelow-expectationas progress is quite slow. In 2018, 7% of total workers are child laborers i.e. agingbetween10to17years.

The government also launched National Program for Reducing Child Labour(Program Nasional Pengurangan Pekerja Anak Dalam Rangka Mendukung ProgramKeluargaHarapan/PPA-PKH)forchildlaborers,especiallytheonesthatworkintheworstformsofchildlabor(BentukPekerjaanTerburukuntukAnak/BPTA)andhavedroppedoutofschoolinVeryPoorHousehold(RumahTanggaSangatMiskin/RTSM).From2008to2018,thisprogramhasreturned105,956childlaborersbacktoschool.Somechallengesremain,suchasdifficultyinerasinghazardouschildlabor,lackoffinancialresourcesandpersonnelintheenforcementofchildlaborlawsthroughoutthecountry.

Figure51.ChildLabourfromAged10to17(%)


7. Worker’sfreedomofassociationandcollectivebargaining

AccordingtoILO,decentworkshouldinvolvefreedomforpeopletoexpresstheirconcerns,organizeandparticipateinthedecisionsthataffecttheirlivesandequalityofopportunityandtreatmentforallwomenandmen.Asoneofthekeyplayersintripartiteindustrialrelations,laborunionisachannelfortheworkerstovoicetheiraspirations.InIndonesia only 2.7 million or 5.5% of total workers are members of labor unions.Moreover, labor unions are focused in industrial relations, such as minimum wagenegotiationsandadvocacyintheformalsector.Therefore,manyworkersintheinformal

6.07.0 7.2 7.0

0.02.04.06.08.0

2015 2016 2017 2018

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sector do not receive the benefits of these labor unions. Lastly, there is a lack ofparticipationamonglaborunionsinshapingfutureemploymentpolicy.

Table3.ComparisonofLaborUnionMembersandTotalWorkers

Data Source NumberofFirms

NumberofEmployees

LaborUnionRationMembers

LaborUnionMembers

MinistryofManpower,2018 - 2,717,961 -

MediumandLargeFirms

BPS,EconomicSensus(UMB),2016

447,352 19,406,401 14.01%

ObjectofLaborInspectionFirms(Small,Medium,Big)

MinistryofManpower,2017 252,880 13,138,048 20.68%

NumberofEmployees

NationalLaborForceSurvey,August2018

- 49,244,371 5.52%

Source:NationalLaborForceSurvey,August2018;StatisticsIndonesia,ManpowerMinistry,andEconomicCensus2016


ForumSosialDialogisaforumledbyKonfederasiSerikatBuruhSejahteraIndonesia(KSBSI)withApindoandLocalGovernmentstartedin2014.Throughthisforum,KSBSIreachedanagreement toestablishMutualAgreement (PerjanjianKerjaBersama/PKB)withsomebigcompaniesinBandung,SubangandBogor.Thereare71companiesand80,073 workers which consist of garment and agriculture sector. The goal of thisagreementistoincreaseworkconditionandworker’sproductivity.Therefore,withtheincreasinginvolvementofemployer,thisforumcanhelpgovernmenttoensurethatallstakeholders have the same goal and accommodate aspirations in a more equalenvironment.

Employment Policy Forum (Forum Kebijakan Ketenagakerjaan/FKK). Theforumisheldregularlywiththeaimoffacilitatingevidence-baseddiscussionsonlabor-related policies in Indonesia. This forum involves government, private sectors, laborunion,researchers,academics,andobserversoflaborissues.Thememberoftheforumconsistsofvariousorganizations(university,NGOs,internationalorganization)suchasCentreforStrategicandInternationalStudies(CSIS),SMERU,WorldBank,UNIKAAtmaJaya,PadjajaranUniversity and theUniversityof Indonesia.Oneof theoutputsof thisforumisdiscussionforumthatdiscusssomefindingsfromrelevantresearchonaspecifictopic such as future of works and labor regulation issues. It involves relevant policymakers, academicians, private sectors and labor organization. The website can beaccessedatwww.laborforum-id.org.

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8. TourismasaNewDriverofEconomicGrowth

As a country with diverse ethnicities and culture, Indonesia has a comparativeadvantageinthetourismsector.Thissectorhascontributedto4.11%in2017and5.25%as target in 2018 of total GDP and 10.2% of the employment in 2018 (Figure 52).Additionally,thissectoristhehighestcontributortoforeignreserve.Thegovernmenthasimplemented several policies to achieve the National Medium-Term DevelopmentProgram(RencanaPembangunanJangkaMenengahNasional/RPJMN)2015-2019targetof20millioninternationaltouristarrivalsin2019,alongwithUS$17,6billionworthofgenerated income in foreign exchange. First is developing 10 Tourism PriorityDestinationssuchas,DanauToba,TanjungKelayang,TanjungLesung,KepulauanSeribu,Borobudur Greater Area, Bromo-Tengger-Semeru, Lombok-Mandalika, Labuan Bajo,Wakatobi,andMorotai.Secondly,theintegratedpromotionprograms,suchasWonderfullIndonesia events and collaborationwithwholesalers andairlines. Lastly, relaxationofimmigrationpolicythroughfree-visapolicyfortouristsfor169countries.

Figure52.TourismSectorContributiontoGDP(%)andEmployment(%)Source:StatisticsIndonesia/MinistryofTourism

In2018,Indonesiaposteda15.4%growthinforeigntouristarrivalsat16.2milliontourists.Intermsofforeignreserve,tourismsectoristargetedIDR223trillionin2018(Figure53).Thisachievementispossible,tosomeextent,duetothegovernment’seffortsandcommitmentinpromotingitstourismwiththe“WonderfulIndonesia”slogan.

4.25 4.13 4.11

5.25

2015 2016 2017 2018 (Target)

TourismSectorContributiontoGDP(%)

7.9 8.3 8.5 9 910.4 10.4 10.2

2011 2012 2013 2014 2015 2016 2017 2018

TourismSectorContributiontoEmployment(%)

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Figure53.ForeignandDomesticTourists(million)andForeignReservefromTourismSectorSource:MinistryofTourism

9. FinancialInclusionandSMEs

To achieve finance for all, financial inclusion is one of the top priorities for thegovernment.AscanbeseeninFigure54,thenumberofcommercialbanksandATMshavebeenaround16and56per100,000adultsin2018.Thereasonsarelimitedexpansionfrombanksandthedevelopmentofmobile/internetbanking.Inaddition,therearealsosomeotherfinancialinstitutionsotherthancommercialbankssuchasruralbanks(BPRs)and cooperatives. The government also supports the financial inclusion agenda byconducting an integrated non-cash transfer for poor people and branchless bankingprogram.

The 2017 Global Findex reports that 49% of the total adult population have a bankaccountinIndonesia,thepoorest40%isonly37%.Thisisasignificantimprovementfrom36%for totaladultand22%for thepoorest40%in theprevious2014GlobalFindex.However, among other peer countries, Indonesia is still belowMalaysia and Thailandwhichalreadyreached80%.

175.71 176.23198.89

223

0

50

100

150

200

250

2015 2016 2017 2018 (Target)

Foreign Reserve from Tourism Sector (IDR Trillion)

256.4

264.3

270.9273.5

10.412.0

14.016.2

0.0

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255.0

260.0

265.0

270.0

275.0

2015 2016 2017 2018

Number of Tourists (Million)

DomesticTourists(rhs)

ForeignTourists(lhs)

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Figure54.NumberofCommercialBanksandATMs(per100,000adults)and2017GlobalFindexSource:BankIndonesiaandWorldBank

Financialaccess forSMEsalso important indicator. In2018,23.6%ofSMEshasaccesstofinancialservices.Itgrew5.6%comparedwith2017althoughitisstillbelow2016proportionwhichat25.7%.Accordingtothetotalcredit,theSMEs’proportionhasanincreasingtrendsince2015.ThedatainOctober2018showsthatitalreadyreached19.7% (Figure 55). It is noted that most of the credits allocation is for trade sectoralthough the government has targeted its micro-credit program (KUR) for moreproductivesectorssuchashome-industryandtourismsector.

Figure55.ProportionofSMEsthathaveaccesstofinancialservices(%)andProportionofSMEs

CredittoTotalCredit(%)Source:BankIndonesia

22.6

25.7

22.3

23.6

20

21

22

23

24

25

26

2015 2016 2017 2018

Proportion of SMEs that have access to financial services (%)

18.9

20.3

19.9 20.020.3

19.7

18

19

19

20

20

21

2013 2014 2015 2016 2017 2018*

Proportion of SMEs Credit to Total Credit (%)

Proportion of SMEs Credit to Total Credit

53 55 56 55

16 16 16 16

0

10

20

30

40

50

60

2015 2016 2017 2018

Number of Commercial Banks and ATMs (per 100,000 adults)

ATMs per 100,000 Adults

Commercials Bank per 100,000 Adults

0%10%20%30%40%50%60%70%80%90%

100%

Account (% age 15+)

Account, male (% age

15+)

Account, female (% age 15+)

Account, income,

poorest 40% (% ages 15+)

2017 Global Findex

Malaysia Thailand Indonesia Philippines Vietnam

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Accesstofinance:Microlending(KURdanKreditUMi).In2018,thegovernmenthadimplementedanewpolicyonmicrolendingnamedKUR(KreditUsahaRakyat)andlaunchedKreditUMi.ItaimstoprovidemoreaccessandencourageproductivecreditsforSMEs.Amongothernewpolicies,theinterestofKURhasbeenloweredfrom9%to7%peryear,includesmoresectorsandspecialschemeandtargetsKURforborderareasandKUBE.Lastly,UMiisultra-microcreditplatformthattargets800,000un-bankableSMEswithIDR10millionperSMEsthroughnon-bankfinancialinstitutionsin2018.

Between2015and2018,KURhasbenefitedits687.897recipientsatatotalsumofRp14,4trillion.Thegovernment’splanin2019istodistributeatotalRp25,3trillionoftheKUR to 1.1million farmers; in details, itwill be Rp25,3 trillion to 905 rice and plantfarmersandRp5,6trillionto240animalfarmers.IntheperiodofJanuaryandApril2019,asmanyas15.722IndonesiansareemployedwithinvariousbusinesssectorsunderKURscheme.

BasedonRegulationofCoordinatingMinistryofEconomicAffairsNo.8/2018 joCoordinating Ministry of Economic Affairs No. 11/2017 about Guidelines forImplementingPeople'sBusiness Loans. ThenewKUR scheme consists of SpecialKURwhich is given to groups that are provided together in the form of clusters by usingbusiness partners for smallholder agriculture and smallholder agriculture as well assmallholderfarmers.

FintechtoIncreaseSMEs’AccesstoFinance.Thelendingandfinancingfintechareoneofthemostpromisingindustries.Thepeer-to-peer(P2P)lendingmarketgrewIDR1.6trillionin2017.P2PlendingmarketalsospurredfundingoutsideJavaupwardsto 10 times the amount compared with last year, reaching IDR 276 billion. Morespecifically,thenumberoflendersincreasealmost8timeswhiletheborrowersincreased7.5 times.7 This shows that the P2P platform has a potential to reduce the economicdisparityinIndonesia.Moreover,itallowsamorerobusteconomicgrowththroughnewandincreasingflowsofcreditandcapitaltoSMEs.AccordingtoBankIndonesia,thereisstillabout50millionSMEsthatdonothaveaccessoffinance.Throughmobiletechnology,financial transactionwill bemore cost efficient andmore convenient. For example, e-bankingusersgrewfrom13.6millionin2012to50.4millionusersin2016.Intermsoftransactionnumbers,itincreasedmorethantwofoldfrom151.8milliontransactionsin2012to405.4milliontransactionsin2016.

B. Challenges

1. RegionalDisparity

Despiteamoreinclusivegrowthachievedbythegovernmentinthelastfouryears,thereisstillasignificantdisparityinpovertyandinequalitybetweenurbanandruralareaacross provinces in Indonesia. SinceWestern Indonesia is themost populated region,economicactivity,tradeandinvestmentaretraditionallyconcentratedintheregioni.e.

7http://ekonomi.kompas.com/read/2017/11/09/193700626/ojk-fintech-p2p-lending-di-indonesia-capai-rp-16-triliun

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JavaandSumatera.However,thereisashiftofgovernment’spolicyinresponsetoreduceregionaleconomicdisparity.Withaspurof infrastructure investment, thegovernmentaimstoredistributetheeconomytoEasternIndonesia,sub-nationalunits,andthevillagelevel.Inthenext30years,theparticipationinthenationaleconomyofislandsoutsideJavaandEasternIndonesiaareexpectedtoincreaseto48.2%and25.1%respectively.

Figure56.DirectionofRegionalDevelopment

Source:MinistryofDevelopmentPlanning,2018

2. Diversificationandhighvalue-addedeconomy

Thestructureoftheeconomystillheavilyreliesonthelow-value-addedsector.Forexample,coalandCPOarestill themostsignificantcontributorsto Indonesia’sexport.Thehigh-technologyexportproductsasaproportionoftotalmanufacturedexportshasfallen from 12.87% in 2009 to 5.43% in 2017. ADB (2019) explains that Indonesia’scomplexityindexhasnotincreasedduringtheperiodconsideredandthattheIndonesianeconomyissignificantlylesscomplexthanthemoreadvancedEastAsianandSoutheastAsianeconomies.Therefore,asthestructuraltransformationprogresses,Indonesianeedstoimproveitseconomytowardsamorediversifiedandhighvalue-addedeconomy.

3. GenderGap,QualityofWorkersandYouthUnemployment

ThesethreecrucialissueshavehamperedIndonesia’slabormarketdevelopment.Firstly,thereisastagnationonwomen’slaborparticipationratewhichrequiresspecialattention to the future policy direction. Additionally, women are more likely to beemployedintheinformalsectorandpaidalowerwagecomparedtomen.Therefore,thegovernmentshouldassuretheimplementationofequalemploymentopportunitypolicy.Secondly, low productivity of the workers indicates the low level of educationalbackground in Indonesia compared to other ASEAN countries. According to PISA,Indonesia’s students are lagging behind their peers in terms of science, reading andmathematicsskills.Additionally,around63%ofmanufacturinglaborersarejuniorhighschool graduates and lower. People with higher educational levels tend to enter theservice sector. Increasing labor productivity in the manufacturing sector througheducationandtraningisimportant,sincemanufacturingworkershaverelativelyhigherincomecomparedtoothersectors.

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4. SkillMismatchandReadinessforFutureJobs

JobmismatchisconsiderablyquitesevereinIndonesiaalthoughthetrendisstartingto decline. It consists of two types, i.e. vertical (overqualified, underqualified) andhorizontal (mismatch with educational background). According to ILO (2017), over-educationhassignificantlydecreased,from27%to19.2%in2016.However,theunder-educationtrendhadbeenincreasingfrom10%in2006to17%in2016.Inotherwords,companies areworking under their full capacity because of under-educatedworkers.IndonesiaalsorankslowintheDigitalCompetitivenessIndexwhichmeansthatIndonesiaisstillnotreadyforfuturejobs.Itshouldbenotedthattechnologicalchangeshifts jobroles,andoccupationalstructuresaretransformingthedemandforskillsatafasterpacethan ever before. For example, by 2022, only 58% task hours will be performed byhumansand42%bymachines(McKinsey,2016).

5. SocialDialogueandEffectivenessofSupervision

The effectiveness of social dialogue in industrial relations can be observed byseveral indicators such as the number of bipartite cooperation institution, companyregulations (Peraturan Perusahaan) and collective labor agreement (Perjanjian KerjaBersama).From2014to2018,thereisanincreaseforthesethreeindicators.However,thesenumberarestilllowintermsofratiooftotalfirms.In2018,thereare16,962firmsthathavebipartitecooperationinstitution,upfrom16,168firmsin2014.

On thesupervision, in2016, theMinistryofManpowerreported that therewereonly1,923laborinspectorsinallofIndonesia,boththosedirectlyinprovincialministriesandlaboragencies.Whiletheobjectoflaborinspectionreaches252,880companieswithasmany as 13.1millionworkers, thismeans that every labor inspector on average isresponsible for 132 companies and 6,832 people. Low number social dialogue andsupervision contribute to the increaseof theprobability of having industrial relationsconflict.

6. LaborRegulations

Laborregulations in Indonesiawhichrefer toLawNo.13of2003seekstocoverformalandinformalemploymentcontexts,byclassifyingtypesofworkersintwocontextsi.e. workers who are in an employment relationship and outside the employmentrelationship. Employment relationships themselves are defined as the relationshipbetweenworkers and employers based onwork agreements,which have elements ofemployment,wages,andorders(Article1number15oftheManpowerAct).Ingeneral,workerswhofulfilltheelementofworkrelationsworkwithinthescopeofthecompanywith a large medium scale business (UMB), while workers who work on a smallmicroscale (UMK) have a tendency to be considered non-employment relations,especiallywhenbusinessactorsarenot legalentitiesanddonotprovideemploymentagreementsforworkers.

Second, several studies explain that the labor regulation rigidity is hamperingIndonesia’scompetitiveness.Thishasabad implication to investmentclimateandhasmade Indonesia fall behind its peers in terms of investment attractiveness amonginvestors.Therefore,reformationinthelaborregulationisalreadyinthegovernment’sprioritytoensureabetterregulationforallstakeholders.

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C. TheWayForward

Therearethreestrategiestoattainthesetargets:(1)tocreateinclusivejobsinhighvalue-added sectors; (2) to increase quality and quantity of vocational education andtraining;(3)toachieveaconducivelaborandindustrialrelationsclimatetowardsamoreflexiblelabormarket.Thebreakdownofthestrategicplansforthenextfiveyearsislistedbelow.

Thebreakdownofthestrategicplansforthenextfiveyearsislistedbelow.

1. Achieving economic growth that creates decent and inclusive employmentopportunities including (1) labor-intensive investment in new growth centersoutsideJava;(2)increaseexportandglobalvaluechainparticipationinagricultureand fisheries sectors; (3) increase investment in new sources of growth such astourism, creative economics and digital economy (4) strengtheningentrepreneurship;(5)improvinginvestmentclimatewithsupportedbybetterandindustrialrelations.

2. Realizing a competitive and productive workforce, by (1) increasing theparticipation of vulnerable groups in the labor market; (2) developing andstrengthening social protection schemes for workers; (3) improving equitablequalityeducationservices;(4)improvinghealthstatusandaccesstoagoodqualityofhealthservices;(5)improvingthequalityandrelevanceofvocationaleducationand training; (5) increasing the importance and competitiveness of highereducation;(6)supportingscienceandtechnologydevelopmentandinnovation;(7)developingnationalcharacter.

3. Increasing the role and cooperation with private sector/industry in vocationaleducationandtraining,by(1)improvingthelabormarketinformationsystem;(2)developing skill improvement fund schemes; (3) developing incentives forindustries that contribute to the development of expertise; (4) Cooperation inpracticing facilities in industry; (5)Developmentof teaching factories / teachingindustry.

4. Improvingthequalityofvocationaleducationandtrainingincluding(1)Increasingvocational facility and infrastructure according to industry standards; (2)developing dual-system in vocational training and education; (3) controlling theestablishmentofnewvocationaleducationunitsandstudyprogramsthatmeetthestandardsandtheneedsof the industry/labormarket; (4) financialmanagementflexibilityintheproductionunit/teachingfactory/teachingindustry.

5. Strengtheningthevocationalcompetencycertificationsystemby(1)strengtheningcompetencyandsynchronizationofcompetencycertification;(2)improvingSKKNIbyadoptinginternationalstandards.

6. Improving labor regulations to support better labor market flexibility andinvestmentclimate.

7. Creatingharmoniousindustrialrelationsby(1)increasingbipartitenegotiation;(2)strengthening institutional labor market institutions; (3) enhancing industrialrelationsdisputeresolutioncapabilities.

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8. Strengtheninglaborinspectioninstitutionstoimprovecompliance.

9. Extending coverage and establishing social protection schemes and ensuringequitableandfaircompensationforformalandinformalworkers.

10. Increasing value-added tourism sector which will be focused on: (1) increasingcompetitivenessin10PriorityTourismDestinations(LakeToba,TanjungKelayang,Tanjung Lesung, Thousand Islands and Old City of Jakarta, Borobudur and itssurroundings,BromoTengger-Semeru,Lombok-Mandalika,LabuanBajo,WakatobiandMorotai); (2) increasing sustainability of Bali tourism; (3) strengthening 11potential destinations (Sabang, Padang Bukittingi, Batam-Bintan, Palembang,Bandung Pangandaran, Banyuwangi, Singkawang Sentarum, Derawan,Makassar-Selayar-Toraja(4)developingecotourismandmarinetourism.

11. Strengtheningthecreativeeconomyandthedigitaleconomywhichisfocusedon5clustersinJava(Jabodetabek,Bandung,Yogyakarta,SemarangandSurabaya),Bali,Medan,andMakassar.Thesectorsthatwillbestrengthenedareculinary,fashion,craft,applications,anddigitalcontent,games,moviesandmusic.

12. Strengthening entrepreneurship and micro, small and medium enterprises(MSMEs)by(1)increasingbusinesspartnershipsbetweenMicro,SmallandMediumEnterprises; (2) increasing access to finance for entrepreneurs; (3) increasingcooperativecapacity,reachandinnovation;(4)increasingthecreationofbusinessopportunities;(5)developingsmallandmediumindustrialcenters;(6)increasetheaddedvalueofsocialenterprises.

D. LessonLearned

Complexproblemsinthelaborsectoraremoreduetothelackof involvementofstakeholdersinreducingunemploymentandincreasinglaborcapacityinIndonesia.Forexample, vocational training and education have been regulated by the central andregionalgovernmentsandtendtonotconsiderindustryneeds.Asaresult,graduatesfromvocational schools and training are not well absorbed due to inappropriate skills,curriculum differences and lack of field practice. Therefore, the government began toinvolvetheprivatesectorinthepreparationofcurriculum,certificationanddistributionforapprenticeshipprograms.

Thegovernment launchedanapprenticeshipprogramasoneof the strategies toprepareacompetentworkforceand inaccordancewith industryneeds,withan initialtargetof400,000workersabletoparticipateandsupportedbytheIndonesiaChamberofCommerceandIndustry(KADIN).AccordingtodatafromtheMinistryofManpowerinJanuary 2018, a total of 10,790 workers had joined the apprenticeship program,consistingof8,340participatingindomesticapprenticeships,1,800internshipsabroad,and650peopleparticipatinginindependentapprenticeshipprograms.

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4.1.3 Goal10.ReducedInequality

This chapter focuses on the indicators in Goal 10 of Reducing Inequality. Theanalysiswillbefocusedonselectedindicators,whichare(i)Giniratio,(ii)Percentageofpopulation livingunder thenationalpoverty line, (iii)Numberof districts that arenolonger underdeveloped, (iv) Number of underdeveloped villages, (v) Number ofindependentvillages,(vi)Averageofeconomicgrowthinunderdevelopeddistricts,(vii)Percentage of poor people living in underdeveloped districts, (viii) Proportion ofpopulationlivingbelow50%ofmedianincome,and(ix)Proportionofmembersofthenationalsocialsecurityforworkers.

Inclusiveeconomicgrowthisanintegralpartofeffortsforequitabledevelopment.These efforts include reducing inequality between income groups through povertyeradicationandimprovedpublicservices,aswellasreducingregionalinequalitythroughconnectivityandmaritimeaffairs.

In the2015-2019NationalMedium-TermDevelopmentPlan, efforts inachievingequitabledevelopmenttoreduceinequalitybetweenincomegroupsincludethefollowingpolicies:(1)Developmentofacomprehensivesocialsecuritysystem,(2)Improvementofbasicpublicservicesforthepoor,(3)Developmentofsustainablelivelihoodforthepoorthroughemploymentdistributionandentrepreneurship.Reducingregionalinequalityisfocused on affirmative policies in underdeveloped regions, villages and rural areas toensuredevelopmentcanservealllayersofsociety.

A. TrendAnalysis

1. GiniRatio

Inthelastfourdecades,theGiniratiomeasuringinequalityinIndonesiahasshowndynamicfluctuations,inaccordancewiththedynamicchangesinsocio-economicaspects(Figure57).Aroundthe1970s,theincreaseininequalitywascausedbyimprovedaccessto education and infrastructure in Indonesia. Around the 1980s, inequality declinedconsistentlyduetotheexpansionoftheagriculturesectorandmassiveeconomicgrowth,especiallyintheruralareas.

Fromthelate1980sto1996,theGiniratioexperiencedanincreaseduetogrowthin financial andbanking sectors aswell as services,whichare closely related tohigh-skilledworkers.From1998to1999,theGiniratiodecreasedduetotheAsianFinancialCrisis. Then, the economy being supported by a commodity boom started growing,followedbyanincreasedGiniratiowhichlaterdecreasedduetothe2008GlobalFinancialCrisis.Inrelationtofinancialoreconomiccrisesingeneral,thesamepatternisfoundinmanyothercountries,socrisesalmostalwaysreduceinequality(Milanovic,2016).AftertheGlobalFinancialCrisis,inequalityhasconsistentlyincreasedandreacheditspeakof0,41in2011.

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Figure57.LongTermInequalityTrend(GiniRatio),1976-2018

AlthoughtheIndonesianGiniratiowasstagnantfrom2011to2014,ithasdecreasedconsistently from2015to2018,reaching0.384recently.Thesamepatternapplies forinequalityinurbanandruralareasalbeitwithdifferentfigures.Urbanfiguresarehigherthanthoseinruralareas.ThepeakGiniratioinurbanareaswas0.433andinruralareasin2014.Afterthat,theGiniratiohasdecreasedto0.391and0.319forurbanandruralareasrespectivelyin2018.

Figure58.LongTermInequalityTrendinIndonesia(GiniRatio)Urban-Rural,1976-2018

Furthermore,therearedifferenttrendsforpercapitaexpenditureofthetop20%,middle60%andbottom20%incomegroups(Figure59).Itisshownthatfrom2009to2011,thetop20%hasincreasedfasterthantheotherincomegroups,wideningthegap

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ofinequality.Until2018,thebottom20%andthemiddlecontinuetogrowsignificantly.Theperiodof2015-2018sawreducedinequalitysupportedbyincreasedconsumptiongrowthaswellasfasterdistributionofthemiddleandbottomincomegroupscomparedtothetop20%.

Figure59.TrendofExpenditureperCapita,2000-2018

InequalitycanalsobemeasuredbyTheilindexthatshowsinequalitybetweenandwithingroups.Figure60showsthedifferenceintheinequalityofurban-ruralareas.Itisshownthatafter reaching itspeak in2011, inequalityhasbeenreduced from2015 to2018.Fora long time, thebiggest contributorofnational inequality is the intra-groupinequality,whichiswithintheurbanareasandtheruralareasitself.Thisisinlinewiththe national inequality framework which holds that regional inequality is moredependentonstructuralfactors.Nevertheless,theurban-ruralgapnarrowed,andfrom2015 to 2018 showed significant decline. This phenomenon is attributed to thegovernment’spolicyof“Developing fromtheperiphery”andputtingmoreattention inruralareasandvillagesthroughVillageFund(DanaDesa)andbuildinginfrastructuretoachievedevelopmentconvergence.Convergencemeansperipheralregionscancatchupwiththemoredevelopedregionsleadingtoamoreequaldistributionofwealth.

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Figure60.TheilIndex

Some countries have shown that increased inequality is often an unavoidableproductrapideconomicgrowth.OneexampleisBrazil.HavingsimilarcharacteristicstoIndonesia,BrazilexperiencedthefastestgrowthofinequalityinSouthAmerica.InBrazil’scase, thesuccessof tackling inequality isattributedtoprudentmanagementofmacro-economicstabilityincludingpricestability,educationexpansionaswellasmassivepro-poorsocialsecurityexpansion(WorldBank,2017).Thisshowsthatpositiveeconomicgrowth can be followed by a reduction in inequality. Therefore, improvements instructural economic factors which determine the profile of the society in general, orspecifically the labor market, is key to the framework of any country’s inequalityreductionpolicies.

In 2017 and 2018, DFI and OXFAM released The Commitment to ReducingInequalityindex,measuredbyindicatorsofpoliciesimplementedinacountry,includingpoliciesonpublicexpenditures,taxesandemployment.Table4showsIndonesia’srankintermsofcommitmenttoreducinginequality.In2017,Indonesiaranked101outof152countries,andlaterimprovedto90outof157countriesin2018.TheincreaseinrankshowsthatIndonesiaincreaseditscommitmenttoreduceinequality.IndonesiaisrankedbetterintheEastAsiaandPacificregion.Indonesiaexperiencedimprovementsinpublicexpendituresandtaxes.Thiswasshowninthisperiodbytheincreasedbudgetallocationfordirectlyreducinginequality(redistributionincludingsocialassistance)andindirectly(buildinginfrastructure).

Table4.Indonesia’sRankinTheCommitmenttoReducingInequality(CRI)Index,2017-2018

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GlobalSpending 121 98Tax 34 23Labor 114 116

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2017 2018RankGlobal 101 90NumberofCountry 152 157

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Source:DFIandOXFAM(2017,2018)


Risingmiddle class.The increase for themiddle class has an effect in reducedinequalityingeneral.Figure61showthetotalofconsumptiongrowthfromallhouseholdsfrom2014to2018,visualizedwiththeGrowthIncidenceCurve(GIC).Thefigureshowsthat,first,thereispositiveconsumptiongrowthacrossallhouseholds.Second,thewelfareofthemiddleclassincreasedhigherthanthoseofthepoorandtherich.Theriseofthemiddle class drives a more equal household consumption distribution or reducinginequality.

Figure61TotalNationalConsumptionGrowth

Figure 62 shows the Growth Incidence Curve for urban-rural. There is similarpattern for both urban and rural, inwhich themiddle-class growth is higher, slightlyhigherforruralareasthanurbanareas.Growthinruralareasisonaverage25%,higherthan theurbanareasof16%. Inurbanareas, the10thpercentile to the80thpercentile

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experiencedgrowthhigher thanaverage. Inruralareas, the40thpercentile to the90thpercentileexperiencedgrowthhigherthanaverage.

Figure62TotalConsumptionGrowthforUrban-Rural

2. National Poverty Rate and Percentage of the Poor Living inUnderdevelopedRegions

Indonesia’spovertyratewassuccessfullyreducedto9.66%in2018despiteslowingdownsince2012.However,thereisawidegapbetweenthepovertyrateofruralareas,13.1%,urbanareas,6.89%,althoughbothexperiencedecliningrates.

In2018,thepercentageofthepoorinruralareasdecreasedto13.2%from13.93%in 2017. This was supported by Special Allocated Funds (Dana Alokasi Khusus/DAK)valuedRp14,9trillion(2017)for122underdevelopedregions.

Figure63.NationalPovertyRate

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Meanwhile,Figure64showsthepercentageofthepoorlivinginunderdevelopedregionsaswellasthenationalpovertyrate.Thepovertyrateinunderdevelopedregionsareindeclinefollowingthedeclineofthenationalpovertyratealbeitatalowerpace.

Figure64.ComparisonofNationalPovertyRatewithPercentageofPoorinUnderdevelopedRegions

Povertyreductiontargetsaresupportedbypoliciesthatarealsoinlinewithtargetsof inclusive economic growth, including social security for the poor and vulnerablethroughtheprovisionofuniversalhealthcoverage(JaminanKesehatanNasional/JKN),andsocialassistanceprogramsincludingtheHopeFamilyProgram(ProgramKeluargaHarapan/PKH),SmartIndonesiaProgram(ProgramIndonesiaPintar/PIP),andRiceforthePoor(BerasSejahtera/Rastra)aswellasNon-CashFoodAssistance(BantuanPanganNon-Tunai/BPNT).In2019,80%oftheIndonesianpopulationhashealthinsurance(JKN)andhalfofthatarecomprisedofassistancebeneficiaries(PenerimaBantuanIuran/PBI)andtargetsofsubsidies.In2018,around10millionhouseholdsor17%ofthenationaltotal received thePKHsocial assistance,which targets familieswithpregnantwomen,schoolchildren,elderly,anddisabledmembers,intheformofconditionalcashtransfer.Thisisathreefoldincreasefrom2014.


Expansion of National Health Insurance Members. In the effort to reducepoverty,IndonesiahasimplementedNationalSocialSecuritySystemforhealthandforworkers. To implement it, the Social Security Organizing Body (Badan PenyelenggaraJaminanSosial/BPJS)isgiventhemandatetoorganizethesocialsecurityprograms.TheprogramforhealthistheNationalHealthInsurance(JaminanKesehatanNasional/JKN),whichintegrateshundredsofseparateexistinghealthinsuranceandemployer-providedhealthcareservicesto itsemployees(self-insured). JKNpoolscontributionsfromthreecategoriesof(i)thepoorandnear-poorasbenefitbeneficiariesfromthegovernment,(ii)the employees in public and private formal sector, paid in percentage from bothemployersandemployees,and(iii)thenon-poorworkingintheinformalsector,whichwillpayafixedpremiumcontribution.

Figure65showsasignificantincreaseintheJKNmembershipsince2014,and81%ofallpopulationhashadhealthinsuranceinMay2019.

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Figure65.NumberandProportionofJKNMembership

Expansion for Family Hope Program (Program Keluarga Harapan/PKH)Beneficiaries.Increasecoverageforthepoorandvulnerablereceivingsocialassistanceisoneofthepriorityprogramsinreducinginequalityandpoverty.PKHisaconditionalcashtransferprogramtargetingverypoorfamiliesincludingpregnantmothers,childreninschool,seniorsandfamilymemberswithdisability.Figure66showsthePKHcoveragefrom2007 to 2019. The number of beneficiaries increases as the fund allocation alsoincreases.

Figure66.NumberofPKHBeneficiariesandBudgetAllocationforPKH

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Figure67.ProportionofHouseholdsasPKHBeneficiariesbyIncomeQuintile

Figure67showsPKHcoveragebyincomequintilefrom2014to2018.Thereisasignificant increase ineachquintilebutmostof thebeneficiariesare from thebottom40%.

3. DevelopmentofUnderdevelopedRegions(Districts)andVillages

The focus of the development of underdeveloped regions are reflected in thefollowingindicators:(i)numberofunderdevelopedregionsthathavebeendeveloped,(ii)numberofunderdevelopedvillages,(iii)numberofindependentvillages(DesaMandiri),and(iv)averageeconomicgrowthinunderdevelopedregions.Inlinewiththetargetofvillage development in the 2015-2019 National Medium-Term Development Plan toreduce5,000underdevelopedvillagesandtoincrease2,000independentvillagesin2019,IndonesiahasdevelopedtheVillageDevelopmentIndex(IndeksPembangunanDesa/IPD)

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tomeasurethedevelopmentprogressofvillages.Someofthedimensionsofthisindexincludeavailabilityandaccessofbasicservices,infrastructure,transportation,fulfilmentofneedforpublicservicesandgovernance.Fromthesedimensions,villagesareclassifiedintothreecategories:independentvillage,developingvillageandunderdevelopedvillage.

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Figure68showsthevillagedevelopmentstatusforyears2014and2018.In2014,Indonesiahad74,093villages, inwhich2,898were independentvillages,50,763weredevelopingvillages,and20,432wereunderdevelopedvillages.Between2014and2018,Indonesia experienced division andmerging of villages.Hence in 2018 Indonesia had75,436 villages, in which 5,606 were independent villages, 55,369 were developingvillages and 14,461 were underdeveloped villages. To be able to compare the databetweenthetwoyears,adjustmentsarerequiredtoexcludethedivisionsandmergersofvillagesinaccordancewiththe2014data.

Figure68.ProgressofVillageDevelopment,2014and2018


VillageFund.ThroughLawNo.6Year2014regardingVillages,thegovernmentwasgivenamandatetodistributetheVillageFundtoachievethetargetsintheMediumTermNational Development Plan, especially increasing basic social services in villages;increasing production, value added and income of the villagers; decreasingunemployment rates, poverty rates and stunting; strengthening village social culturalcapital;decreasingthenumberofunderdevelopedvillages;andincreasingthenumberofindependentvillages.In2017,74,957villageshavebeenassistedby36,594assistantsinallregencies/cities,districtsandvillages;18,446village-ownedenterprises(BadanUsahaMilikDesa/BUMDes)havebeen formedand strengthened to support village economicactivities; and Rp 58.95 trillion of Village Funds has been distributed to 434regencies/cities(99%ofthetotalofVillageFundsofRp60trillion).

WiththedistributionoftheVillageFund,itisapparentthattheaverageeconomicgrowth of underdeveloped regions (Figure 69) have the same pattern as that of thenationaleconomicgrowth,albeitwithhighergrowth.Since2012,after thecommodityboom,Indonesiaexperiencedeconomiccontractionreflectedinaslowerrateofeconomicgrowth.However, Indonesiasucceeds tomaintainpositiveeconomicgrowth,andevenhighergrowthinunderdevelopedregions.

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Figure69.AverageEconomicGrowthinUnderdevelopedRegions

4. ProportionofthePopulationLivingUnder50%ofMedianIncome

According to the data available, this indicator may be measured through anexpenditures approach. This indicator is commonly used in developed countries tomeasure relative poverty. Although Indonesia has experienced decreasing absolutepoverty rate, at the same time Indonesia experienced an increase inpopulation livingunder 50% ofmedian expenditure as shown in Figure 70 below. The proportion hasdecreased in 2018. This shows that although a percentage of the population is out ofabsolute poverty but they are still vulnerable to poverty. Figure 70 also shows fasterincreaseinmedianexpenditureofhouseholdsin2014-2018incomparisontotheaverageofexpendituresbelow50%median.Thehighergrowthofthemedianalsoshowsthatthemiddleclassisrising.

Figure70.ProportionofPopulationLivingBelow50%ofMedianIncome

Meanwhile,Figure71showsthenumberofindividualslivingunder50%ofmedianexpendituresaccordingtogenderandurban-ruralarea.Bothmalesandfemalesshowedanincreasingproportionofindividualslivingbelowthe50%ofmedianincome,withthefemale proportion being slightly higher than themale. The urban-rural gap is slightlymoresignificant.Theproportionofpopulationlivingbelow50%medianexpendituresinruralareasaretwiceofthoseinurbanareas.

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Figure71.ProportionofPopulationLivingBelow50%ofMedianIncome,byGenderandUrban-Rural

Figure 72 below shows the proportion of population living below 50%medianexpendituresbydisabilitystatusin2018.Since2018,theNationalSocio-EconomicSurvey(Susenas)hasincludedquestionsondisability.Thereareeight(8)questions,includingdifficultyinsight,hearing,walkingorwalkingupthestairs,movingfingers,memorizingorconcentrating,controllingbehaviororemotion,speakingorcommunicating,andtakingcareofoneself.Thestatusofdisability,asseeninthefollowingfigure,isdefinedaspeopleexperiencing a little difficulty (moderate status) as well as a lot of difficulty and/orneedingassistance (severe status). FromFigure72, it is shown that theproportionofpopulationlivingbelow50%medianexpenditureare2percentagepointshigherforthepeople with disability compared to people without disability. This may imply thatdisabledindividualsarerelativelypoorercomparedtothosewithoutdisability.

Figure72.ProportionofPopulationLivingBelow50%ofMedianIncomebyDisabilityStatus,2018

5. Proportion of members of the National Social Security for WorkersProgram

Oneoftheeffortsinreducinginequalityandpovertyisthroughthestrengtheningofsocialsecuritysystemsespeciallyforthepoorandvulnerablethroughgovernanceandsynchronization of the National Social Security System (Sistem Jaminan Sosial

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Nasional/SJSN)forhealthandworkers,aswellasincreasingthemembershipofuniversalhealthcoverage (JKN)andworkers insurance in theworkplace.LawNo40Year2004regardingtheNationalSocialSecuritySystem,theSocialSecurityOrganizingBody(BadanPenyelenggara Jaminan Sosial/BPJS) is given the mandate to organize social securityprograms. For the workers, BPJS for workers provides several services, includinginsurance for Work-Related Accidents (Program Jaminan Kecelakaan Kerja/JKK), LifeInsurance(JaminanKematian/JKM),insuranceforseniors(JaminanHariTua/JHT),andpension(JaminanPensiun).

Figure73showsthemembershipofthesocialsecurityforworkershasincreasedsignificantlybymorethantwo-foldssince2008.Thistrendisinlinewiththetargetofthe2015-2019NationalMediumTermDevelopmentPlantocoverasmuchas62.4millionformalworkersand3.5millioninformalworkersin2019.

From the number ofmembers, there are increases forwageworkers, non-wageworkers and construction workers, as shown in Figure 73. Wage workers andconstructionworkersaspartoftheformalsectorhavethebiggestnumberofmembers.Howevernon-wageworkersortheinformalsectorhasexperiencedthehighestincrease,thoughthenumberisstillrelativelysmall.Althoughthereisprogress,moreeffortneedsto be done because 75% of workers in Indonesia are not yet members of the socialsecurityforworkers,especiallythoseintheinformalsector,whoarethebiggerportionofworkersinIndonesia.

Figure73.ProportionofSocialSecurityforWorkersMembersandMembershipoftheSocialSecurityforWorkers

B. Challenges

Thechallenges indevelopmentequalityconsistsof twodimensions,a) inequalitybetween incomegroups(includingpovertyreductionandsocialsecurity forworkers),

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andb)regionalinequality(includingtheaccelerationofdevelopmentofunderdevelopedregionsandvillages).

In addressing inequality between income groups, the challenges include: (1)slowdowninpovertyreduction;(2)unequalaccessandqualityofhealthandnutritionservices;(3)unequalaccessandqualityofeducation;(4)unequalaccessforhouseholdsto housing and settlement; and (5) governance of unstandardized basic services.Therefore,amulti-sectoralandmulti-stakeholdercooperation is required to reach thepoorandvulnerableintheefforttoreducepoverty.

The main challenges in addressing regional inequality include: (1) unequaldistributionoftransportationandlogisticsnetworks,aswellasnationalconnectivityinsupportingleadingsectors;(2)highcostoflogisticsandcommoditypricesinregionswithlimitedaccessibility;(3)lowaccessibilitytobasicservicesandeconomicactivitycentersfor people living in villages, rural areas, underdeveloped regions, border regions andtransmigration regions; (4) disaster unpreparedness; and (5) inadequate facilities forfisherieslogisticssystem.

C. TheWayForward

TheGovernmentofIndonesiamaintainsahighandincreasinglyinclusiveeconomicgrowthinordertoservealllayersofsociety.Inclusiveeconomicgrowthiscentereduponupscaling and increasing economic access to reduce poverty and inequality throughquality job creation. Policies to reduce inequality in 2019 GovernmentWorkplan andbeyond,focusesonthedevelopmentofhumanandregionalequality.

Reducing inequality between income groups is supported by several policies,including(1)accelerationofpovertyreduction;(2)increasingaccessofcommunityhealthand nutrition; (3) equal quality education; (4) increasing access to housing andsettlement;and(5)increasinggovernanceofbasicservices.

Reducing regional inequality through connectivity and maritime development,through (1) an improved logistics system; (2) development of infrastructure; (3)accelerationofPapuaandWestPapuadevelopment;(4)accelerationofthedevelopmentofunderdevelopedregionsandvillages;and(5)disasterriskmanagement.

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4.1.4 Goal13.TakeUrgentActiontoCombatClimateChangeandItsImpacts

TheGoal13discussionwillcover2mainissues,namely:(1)Strengtheningclimateresilience and adaptive capacity related to hazards and disasters which consist of 3(three) indicators,namelythenumberofdeaths,missingpersonsanddirectlyaffectedpersons attributed to disasters, national disaster risk reduction (DRR) strategydocuments in linewiththeSendaiFramework forDisasterRiskReduction2015–2030andproportionof localgovernmentsthatadoptandimplementlocalDRRstrategiesinlinewithnationalDRRstrategies;(2)Integratetheclimatechangemitigationeffortsintonationalpolicies,strategiesandplanningwhichconsistofBiennialUpdateReport(BUR)and National Communication (NatCom) reporting indicator, and other nationalindicators, namely (a) percentage of GHG emission reduction and (b) GHG emissionintensity. The discussion includes the development achievements analysis; policies,strategiesanditsefforts;thepracticesthatsupporttheachievementofSDGObjective13;challenges and problems that are still faced; and the effort of strengthening andimprovementinthefuture.

A. TrendAnalysis

Strengtheningresilienceandadaptivecapacityrelatedtodisaster

1. Number of Deaths, Missing Persons and Directly Affected PersonsAttributedtoDisasters

Within the spaceof 8 (eight) years (2010-2017), thenumberof hydro-meteorologicaldisastersincreasedby887incidents,whilegeologicaldisastersincreasedby64.Thetypesof hydro-meteorological disasters with the largest increase in numbers of incidentsduring2010-2017weretornadoes(363incidents),forestandlandfires(346incidents),landslides(145incidents),floods(105incidents),andtidal/abrasion(17incidents).

ThedatacompiledbyBNPBontheimpactofnaturaldisasters,namely,showsthatthenumberofdeathsandmissingpersonsper100,000personsreached0.8in2010and0.14 in 2017. The number of affected persons per 100,000 persons in 2010 reached862.08andincreasedsignificantlyto2527.92in2017.Thevalueofeconomiclossesduetodisastersin2010reached11.9trillionor0.17%ofGDPanddecreasedin2017to4.7trillion or 0.05%of GDP.During 2010-2017direct economic lost due to disaster hasreducedby7triliunrupiah.Theaverageeconomiclossbetween2010and2017was6.6trillion.ThedetaildataoftheimpactofnaturaldisastersinIndonesiacanbeseeninFigure74.

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Figure74.TheImpactofNaturalDisasters2010–2017(Source:TechnocraticDesignRPJMN2020–2024)

2. The National Disaster Risk Reduction Strategy in Line with SendaiFramework.

Thereare4(four)prioritiestobeachievedoftheSendaiFrameworkforDisasterRiskReduction(SFDRR)until2030,namelyunderstandingdisasterriskbasedonscience,technologyandlocalwisdom;strengtheningdisasterriskgovernancetomanagedisasterrisk by applying the principles of participation, justice, equality, professionalism,independence,efficiencyintheuseofresources,andontarget/effectiveness;investinginDRR for resilience through sustainable and accountable structural and non-structuraldevelopmentat all levels anddonot causeor increaseeconomicandsocial risks; andenhancing disaster preparedness for effective response, and to Build Back Better inrecovery,rehabilitationandreconstruction,sothatthegovernmentandthecommunityhavethecapacitytohandlethedisasterseffectivelyandindependentlyandbeabletoriseafterthedisasterandgetabetterlife.

Indonesiahasmademanyeffortstoreducerisksofdisasters,amongothers,aspectsofplanningpreparation, institutional strengthening, andcommunity capacitybuilding.ThesuccessofthoseeffortsarereflectedintheIndonesianDisasterRiskIndex(IRBI)datathathasseenadeclineduringthe2015-2018timeframein136districts/citieswhicharecentersofgrowth(Figure75).

TheIndonesianDisasterRiskIndex(IRBI)declinedby16.06percentfrom2015to2017. Then in 2018 as a result of the implementation of programs and disastermanagement activities carried out by 32Ministries/Institutions in collaborationwith

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localgovernments,communities,volunteers,andbusinessowners,theIRBIdeclinedto128.8orequivalentto23.97percentcomparedto2015numbers.

Figure75.DevelopmentsandprojectionsforIndonesia’sdisasterratioindex2015–2018

(Source:TechnocraticDesignRPJMN2020–2024)

3. The Proportion of Local Governments Adopting and ImplementingDisasterRiskReductionStrategies.

Atpresent,thepercentageofprovincialgovernmentsthatadoptandimplementaDRRstrategyis100%,all34ProvinceshaveadoptedaDisasterManagementPlan(RPB).Whileatthedistrict/cityleveltheproportionis30%,equivalentto118districts/citiesadopting a RPB. The scope of the RPB consist of the identification and assessment ofthreats,understandingthevulnerabilityofthecommunity,analysisofdisasterimpacts,DRRmeasuresoptions,appointmentofmechanismsforpreparednessandresponsetodisasterimpactsandalsoallocationoftasks,authorityandavailableresources.

RPBasadisastermanagementplanningdocumentisusedinthedevelopmentoftheRegionalMedium-TermDevelopmentPlan(RPJMD).Theresultofdisastermanagementpoliciesarenotonlyadministrativebutalsodirectedtothevulnerabilityfactorsineachtype of disaster threat in each region. In addition, the RPB is used to measure theimplementationandachievementofregionalDRRtargets,duringtheperiodofplanningandimplementationofmedium-termdevelopment.

CurrentPolicies,Efforts,andBestPractices

DRReffortsarethefocusofthenationaldevelopmentprioritiesintegratedinthe2015-2019NawaCitaRPJMNpolicy.Theobjectiveistoreducethedisasterriskindexin136growth-centersdistricts/citieswithhighdisasterriskindex,throughthefollowingstrategies:

Internalization of DRR in development at the national and regionalgovernment levels. As an initial step, DRR policies are internalized into 2015-2019GovernmentWorkPlan,implementedby32Ministries/Institutionsthrough68programs.These plans are directed to strengthen the capacity of disaster managementimplementation in the regions. Disaster management is set as a Minimum Service

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Standardfortheimplementationofregionalgovernance,whichhasbeenimplementedstarting2019tobuildtheindependencyofregionaldisastermanagement.

To strengthen regional development planning which incorporates a DRRperspective,disasterriskresearchandmappingshavebeenconductedin34provincesand170districts/cities.The researchandmappingsare synthesis fromotherdisastermapsthatincludehazardmaps,vulnerabilitymapsandcapacitymaps.Thesemapsareusedasthebasisofdisastermitigationstrategiesdevelopment,whicharedevelopedintodisasterpreventionplans(RPB)in34Provincesand118districts/cities.RPBsconsistsof:(a)Disasterprevention,(b)Educationandtraining,(c)Disastermanagementplanning,(d) Disaster risk reduction, (e) Technical standards for disastermanagement, and (f)Disaster risk analysis. The 2015-2019 RPJMN targets the completion of RPBs in anadditional18districts/citiesin2019.

Decreasingthelevelofdisastersvulnerability.Theeffortsinreducingthelevelof vulnerability to disasters were carried out through the establishment of TangguhBencanaVillagein594villagesin186districts/cities.TangguhBencanaVillageisavillagethat has a capability to adapt and deal with the threat of disasters and recoverimmediately from the adverse effects of disasters. In addition, reducing the level ofvulnerability todisasterswasalsocarriedout throughthe installationofamultithreatdisasterearlywarningsystemin58locations.Themultithreatearlywarningsystemisanimportantmatterthatneedstobeconsideredduetotheincreasingnumberofdisastersoccurring in Indonesia from year to year. Disasters such as earthquakes, tsunamis,volcaniceruptions,floods,landslides,droughts,forestandlandfiresandextremeweathertendtoincreasewhilethelimitedcapacityofinfrastructureandpublicknowledgecausestheriskofdisasterimpactstoincrease.Otherimplementedeffortsweretheinstallationofdisasterinformationwarningsignsandboards,creationofcontingencyplansandfieldtestsin11districts/cities.Contingencyplanningandfieldtestingareactivitiesheldinthepre-disasterphase.Theseactivitiesareneededtomeasurethepreparednessinfacingthepossibility of disasters, including community preparedness. The facilitation of 5000volunteersthroughoutIndonesiaandthepromotionofDRRforumestablishmenthavealsobeenconductedtoachieveself-relianceondisastermanagement.

Efforts toensure theprincipleof "noone leftbehind" indisastermanagement iscarriedoutbyinvolvingpersonswithdisabilitiesasactorsindisastermitigation.Goodpracticeshavebeencarriedout,amongothers,throughtheestablishmentoftheDifagana(difabelsiagabencana)volunteergroupinYogyakartaProvinceandtheestablishmentofDisability Inclusion Services Unit (LIDi, Layanan Inklusi Disabilitas) in disastermanagementinCentralJavaProvince.

Strengthening the capacity of the government, regional government andcommunities in disaster management. There are 34 provincial BPBDs and 498districts/citiesBPBDsthroughoutIndonesia.Inordertoimprovetheimplementationofdisastermanagement, especiallyDRR, theGovernment continuously supports capacitybuildingonregionaldisastermanagement througheducationandtraining forregionalgovernmentofficialsincollaborationwiththeTrainingAgencyinallprovinces,formingandtrainingRapidResponseTeamsin34provincesand136districts/cities,providingtechnical guidance in damage assessment and recovery planning and communityresiliencebuildingforabetterandmoresustainableeconomyinthepost-disasterareas.

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Toimprovedisastermanagementcapacity,theGovernmentalsoprovidessupportfor local governments and communities in improving disaster awareness culture andpreparedness in facing disasters. This support includes disaster relief equipmentdistributed to the districts/cities level, logistical assistance for basic needs, logisticalsupportandequipmentassistanceduringdisasters.Tobuildacultureofawareness,theGovernmenthasalsoprovidedinformationsystemassistanceintegratedwithoperationalcontrolcenters(Pusdalops)in30provincesand104districts/cities,disasterawarenessculture campaigns, and disaster management public relations services throughoutIndonesia.

Increasing climate resilience through climate change adaptationprograms.Referringtothe2010IndonesiaClimateChangeSectorRoadmap(ICCSR)andthe2015-2019RPJMN there are 15pilot areas for theNationalActionPlan for ClimateChangeAdaptation(RAN-API),namelyBali,EastJava,NorthSumatra,SouthSumatra,WestJava,WestNusaTenggara,MalangCity,MalangDistrict,Lombok,BandarLampung,Batu,Blitar,Pekalongan, Semarang and Tarakan. All of the pilot areas have different vulnerabilitysectors according to the conditions of their respective regions. These sectors includeagriculture, water, health, marine and fisheries sectors. There have been manyachievementsandgreatprogresson theRAN-APIactivities in theaspectsof research,educationorcapacitybuilding,aswellasthedevelopmentofinfrastructureforclimatechangeadaptation.

AnothereffortcurrentlybeingimplementedisAPI-PRBconvergenceprocess,whichaims to reduce the adverse impacts of disastersdue to the increase of variability andclimatechange.Thatconvergencewillencouragethepolicyandinstitutionalreformtoaccommodate API and DRR. This fosters the effective policies and use of resources,efficient administration practice and encourages a coordination mechanism betweensectors.

Box26.ImplementationofIntegratedRiskReductionVillages

OelbetinoVillageisoneofeightvillagesassistedbyCAREInternationalIndonesia(CII)inthePartnersforResilience(PfR)program.Atthebeginningoftheprogram,thetypesofdisastersidentifiedinthisvillageweretornadoes,droughts,livestockdiseases,diarrheaandmalaria,andalsolandslides.Thesethreatshavethepotentialtodisruptthecommunity’slivelihoodsbecausethemajority of residents work as farmers and ranchers. Dependency on natural resourcesmakes peoplemore vulnerable to these threats. The common strategies used by Oelbitenoresidentstoreducedisasterriskincludemakingvillagebarns,plantingprotectivetreesaroundthelandandapplyingwater-efficientagriculturalpatterns.

TogetherwithCAREandCISTimor,residentsformulatedajointactionplantoreducedisasterriskaffectingtheirsourcesoflivelihood.Thiswasfollowedupbysmallscalemitigationplansandactionsby7farmergroupssuchas1)protectionofwaterspringsanderosioncontrol;2)watersupplyandirrigation;3)permanentagriculture(permaculture);and4)cattlefattening.Now, some farmers have independently continued these practices, especially permaculturethroughthedevelopmentofcriticallandforhorticulturecrops.

Resultsandimpacts:

1. Thechangesofagriculturalsystem

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Beforeadoptingthepermaculturesystem,agriculturewasbasedonshiftingcultivation,byburningtheforesttoclearthe land.Thisofcoursenotonlyhasanegative impactontheenvironmentbutalsoincreasestheriskofforestfires.

2. AdditionalincomeThe community received vocational training such as terraces farming techniques andorganicfertilizerproduction.Thesetrainingshavebroughtchangetopeople,bothfromtheaspectofknowledgeandalsoskills,greatlyaffectingtheirlivelihoods.

ChallengesandLearning:

1. The need to improve advocacy capacity for community groups to guard IntegratedRiskManagement(PRT)Villagesinformulationofvillagedevelopmentplans

2. Theneedforwiderreplicationatdistrictlevelreachedthrougharegionalapproach

TheOelbetinoPRTVillagehasbeenintegratedwiththeVillageFund.Thismeansthatthereisacontributionfrompublicfundstothesustainabilityofthisprogram.ThegoodpracticeshowninOelbetinoVillagehasalsobeenreplicatedbyaneighboringvillage.

Box27.MaritimeWeatherForecastInformationandFishingLocations

ForecastforCoastalCommunities

IFRC PfR has collaborated with a number of organizations to introduce maritime weatherforecast information and forecast fishing areas to coastal communities. Information aboutforecastsofwaveheight,directionandspeedwindsandcurrents,conditionsofclouds(bright,cloudyorrain)forthenextsevendaysisavailableontheBMKGwebsite.However,thecoastalcommunities have no skills to acquire and disseminate this information for their safety offishing, transportation, tourism and marine cultivation. The available information is onlygeneralweather informationon land, suchas temperature,humidityandrainopportunitiesthatisroutinelyconveyedbythegovernmenttothemassmedia(television,radio).Insteadofmaritimeweather information, the forecast of fishing areas (PDPI) is also available on theMinistryofMaritimeAffairsandFisherieswebsite.Itcanbeusefulforfishermen.

TheimpactofthistrainingactivityonfishingactivitiesanddailyactivitiescanbeobtainedfromtheobservationoflocalfacilitatorsandthedynamicscommunicationintheWhatsAppgroup.Post-trainingobservationsforNorthJakartaandKupangareavailable,buttheobservationsforotherregionsarenotavailableyet.TheKupangAlumniWhatsAppGroupisrelativelymoredynamic. They also disseminate and respond to general weather information. The localfacilitatorsaidthatfishermenandteenagersoftencheckthemaritimeweatherforecastingandterrestrial weather on the "Cuaca BMKG" application installed on their smart phones. ThedifferentimpactoftheresultsofthistrainingislikelytobeinfluencedbyamoreriskyaquaticenvironmentandtheseadistanceinKupang.

From several trainings, we have seen that maritime weather forecast information is morenoticedbyfishermenwhosailinriskierwaters(openwaterswithhighwaves,fastandstrongwinds)comparedtofishermenwhogoouttobaysorislandsrelativelyquietthroughouttheyear.Thosewhogofartherfromshoreneedtheinformationmorethanfishermenwhodon’tstrayfarfromthecoast.CoastalcommunitiestendtoshareinformationontheweatherverballyratherthanthroughtheuseofWhatsAppgroups.Afterthetraining,therewereanumberof

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othercoastalcommunitymemberswhoparticipatedinlearninghowtoobtainandunderstandinformationonmaritimeandPDPIweatherforecastsfromtrainingalumniandfieldstaff.

Threepreconditionexist toreplicate theprogram:(1)Experiencedtrainers/facilitatorswhoare able to use the guidelines provided, (2) coastal areas with good internet access, (3)communitymembers,especiallyyoungpeople,housewivesoryoungfishermen,whoareusedto social media or web surfing. This activity can be done independently by the VillageGovernmentbyusingtheVillageFundandthesupportofotherparties.

.

Box28.ReducingDisasterRiskCausedbytheChangingClimatethroughthe

ImplementationofConservationAgriculturePrograms

Thechangingclimateisanadditionalstressfactorforresource-poorfarmerswhoareunabletocopewithrecurringextremeclimateeventsoradapttoclimate-relatedrisks.Theintroductionofclimatesmartagriculture(CSA)measures,includingconservationagriculture(CA),providesa basis to adapt to climate change, and increases farmers’ resilience without threateningagricultureproduction.CSAalsoreducesgreenhousegasemissionsbyreducingthepracticeofshiftingcultivationwiththeassociatedburningofcutvegetation.

SDG target 13.1 is comprised of strengthening resilience and adaptive capacity to climate-related hazards and natural disasters, and indicators 13.1.3 covers the integration of localgovernmentDRRstrategiesandpoliciesacrossallsectors.Giventheimpactsofdroughtontheagriculturesectorin2015,thelocalgovernmentinEastNusaTenggara(NTT)andWestNusaTenggara(NTB)ProvinceshaveadoptedandimplementedCAprogramstoenablethefarmersto face the extreme climate conditions. The programs have also been taken up by the localgovernmentsofSouthSulawesi,CentralSulawesi,andGorontaloProvinces.

SDG target 13.2 refers to integration of climate change measures into national policies,strategiesandplanning.InNTTandNTBprovinces,thelocalgovernmenthasmadeastrongcommitment to implement CA by integrating it to the local mid-term development plan(RPJMD) and allocating funds from their budgets. Following the success of the 2015-2018program,NTBhasallocatedIDR5billionto100farmergroupsin10districtsin2019,whileNTBhasallocatedIDR6billionperyearsince2016.Also,thelocalgovernmentofTimorTengah

IntercroppingMaizeWithCassavaInSabuBaniFg,Camplong(source:

http://ina-ca.litbang.pertanian.go.id)

LandpreparationduringToTonCAinAlor(source:http://inaca.litbang.pertanian.go.id)

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Utara District in NTT hasmainstreamed the program into the local government regulation(PerdaNo.1/2018).

WithregardtoSDGtarget13.3onimprovementsineducation,awarenessraisingandhumanand institutional capacityon climate changemitigationandadaptationand indicator13.3.1,three local universities (University of Mataram, University of Nusa Cendana, University ofTimor) have included in their curriculum topics around adaptation to drought and climatechangethroughthepracticeofCA.Inaddition,587agricultureextensionworkersfromthelocalgovernment institutions and 17092 farmers have been trained through a of Farmers FieldSchools program, which has been broadcasted on national television. The topics of thecommunicationmaterialsincludehowtheprogramcouldcontributetoreducingdisasterriskfrom changes in the climate such as drought, and improving resilience of community foodproductionespeciallyindrylandareas.

Box29.BuildingwithNatureIndonesia

TheBuildingwithNatureprogramisessentiallyaphilosophyorwayofthinking,whichtakesintoaccountvariousnaturalmechanismsandincorporatesthemintheinfrastructureplanning.Thus,thebasicprincipleofthisprogramcombinesanature-basedtechnicalapproach(suchasmangrove restoration) with hard engineering (such as dams and seawalls). Through thecombinationoftheseapproaches,developmentismeanttoharnesstheforcesofnature,ratherthanclashingwiththem.

TheapplicationoftheBuildingwithNatureconcepthasbeenconductedinthenortherncoastof Demak, Central Java, with the support of an Indonesian-Dutch consortium. Through thisinnovativeapproach,theconsortiumalongwiththeLocalGovernmenthasstrivedforasafercoastalareawherethelocaleconomycanthriveandthepreviouslyvulnerablecommunitycanbecome more resilient to the threats of disasters. The Building with Nature program hasbecomeabestpracticeintheapplicationofIntegratedRiskManagement(PRT)duetoitseffectsonnotonly theenvironmentalaspectsof things,butalsoonefforts toraise the incomeandcapacityofthecommunity.

TheBuildingwithNatureworkmechanismpromotes the formationof inclusive communitygroupswhichareengagedwithlocalgovernmentsinimplementingBioRightsmechanisms.Anumberofprogramshavebeenconductedbythesegroups,suchascapacitybuildingforgroupmembersinplanning,execution,observation,evaluationandreporting,vocationaleducationforlocalcommunities,erectionandmaintenanceofdamsandcommunityinvolvementinpolicydevelopment.

These programs have resulted in, among others, the improvement in the quality of theenvironment,theacknowledgementofcommunityinterest,elevationincommunitycapacity,arise incommunity income,anewfoundawareness in theenvironmentandpreparedness infacing the risksofdisasters.Moreover,wehavealso learned that theapproachneedsmuchpreparation, planning and integration, also a longer timeframe to ensure the communityreceiveseffectiveeducation.

BesidesbeingintegratedwiththeVillageFundandinlinewithVillageRegulations,theBuildingwith Nature program has also been replicated by members of the consortium, namely theMinistryofMaritimeAffairsandFisheries(KKP)andtheMinistryofPublicWorksandPublicHousing in a number of other regions throughout Indonesia. The concept is also beingdevelopedinAsia,whereIndonesiahasbeenplayingitspartinsharingpastexperiences.

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IntegrationofClimateChangeMitigationEffortsintoNationalPolicy,StrategyandPlanning

1. BiennialUpdateReport(BUR)2015DocumentandtheThirdNationalCommunication(TNC)2017

Asapartytotheconvention,Indonesiaiscommittedtosubmitdocumentsontheefforts to combat climate change to theUNFCCC.BUR is anupdateddocumenton theimplementationofmitigationactionactivitiessubmittedtotheUNFCCCintheforestry,agriculture,energy,industryandwastesectorswhicharedeliveredevery2(two)years.Indonesia'sfirstBURdocumentwassubmittedtotheUNFCCCfortheperiod2000-2012.

Figure76.BURandTNCDocument

Regarding National Communication documents, Indonesia has submitted threereports, the Initial National Communication in 1999 and the Second NationalCommunication (SNC) in November 2010. Both documents contain reports ondevelopments in efforts to combat climate change in Indonesia. The Third ReportCommunication(TNC)hasbeensubmittedtotheUNFCCCin2017,wherethecontentsofthe report includedevelopments in themanagementof climatechangeat thenationallevel, including institutional management, REDD +, constraints and gaps related tofunding, technical and capacity building needs, green houses gasses (GHG) emissionlevels,climatechangeimpactsandMRVefforts.

2. TheReductionofGHGEmission

BasedontheresultsofcompilationandcalculationsbytheRAN-GRKSecretariatoftheMinistryofPPN/Bappenas, thepotential achievementofGHGemission reductionswas22.5%fromtheaccumulativebaselineuntil2017.Thisachievementisaresultofthecontributions of all sectors (forestry and peat land, agriculture, energy, industry,transportation,andwastemanagement),fromtheactivitiesofMinistries/InstitutionsandRegionalGovernments in34Provinces.Thebaseline value and the annual cumulativeemissionpotentialgraphicareshowninFigure77.

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Figure77.BaselineValueandCumulativeEmissionPotential2010-2017

Besidesthisaccumulation,RAN-GRKSecretariatofthePPN/BappenasMinistryhasalsocalculatedthebaselinevalueandannualpotentialGHGemissionsFigure78.Basedonthecalculationanalysis,theachievementvalueofGHGemissionreductionin2017is24%or450,102tonsofCO2ewhichoriginatedfromtheimplementationofallRAN/RAD-GRKfields.

Figure78.BaselineValueandAnnualEmissionPotential2010–2017

InthecontextoftheRAD-GRK,theMinistryofPPN/Bappenas,throughtheRAN-GRKSecretariat,carriedoutanintensivementoringprocesstolocalgovernmentsin34provincesandensuredthatRAD-GRKwasmadeanintegralpartoftheregionalplanningprocess.NationalworkshopsandconsultationsareheldatleasttwiceayearbyinvitingallRAD-GRKWorkingGroups in34Provinces toensure that all regions can carryoutmonitoringandcalculationofmitigationactionsappropriately.

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3. GHGEmissionIntensity

TheintensityofGHGemissionsisoneofmainindicatorsinlowcarbondevelopment.In2017, thepotential reduction inemissions intensitystoodat27%or0.41gigagramCO2e/billionrupiah(412tonsCO2e/billionrupiah)whencomparedtoBaselineof0.56gigagramCO2e/billionrupiah.ThegraphofthebaselinevalueandactualintensityofGHGemissionsfor2010-2017canbeseeninFigure79.

Figure79.BaselineValueandActualIntensityEmission2010–2017

Thedecrease invalueofGHGemission intensity reveals two indications,namelypositiveeconomicgrowthandsuccessfuleffortstoreduceGHGemissions.Upto2017,Indonesiahasshownapositive trend ineconomicgrowth, in linewithaspectsofGHGemissionreductionwhichsucceededinachievingthetarget.

CurrentPolicy,Efforts,andGoodPractices

Everyyear,relevantMinistries/Institutionsand34Provincessubmittheresultsofthe calculation on the achievement of potential GHG emission reductions from theimplementation of activities in the RAN/RAD-GRK to the Ministry of PPN/Bappenas.TheseresultsarethenverifiedbyKLHKandreportedtotheCoordinatingMinistryforEconomicAffairs.Subsequently,theseresultsbecomeanationaldocumentsubmittedtothe President as a reference for reporting to the international community under theUNFCCCframeworkasthestatusofclimatechangemanagementtargetsachievementinIndonesia.TheachievementofGHGemissionreduction ineachrespective fieldcanbeseeninFigure80.

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Figure80.AchievementofSectorialEmissionGHGReduction2010-2017

Thedetailedpoliciesandactivitiesofeachfieldareasfollows:

ForestryandPeatLands.TheforestryandpeatlandsectoristhelargestemissioncontributorinIndonesia,butthefieldalsohasaconsiderableabilitytoreduceemissions.Policiesintheformofmitigationactionsinthefieldsofforestryandpeatlandinclude:(1)Controlofforestandpeatlandfires;(2)Forestandlandrehabilitation;(3)Moratoriumandpostponement of newpermits to primary forests andpeat lands; (4)Decrease indeforestation; (5) Increase in implementation of sustainable forest managementprinciples,bothinnaturalforests(decreasingforestdegradation)andinplantations;and(6)Peatlandrestoration.

Agriculture. The mitigation policies in the agriculture sector include: (1) TheapplicationofagriculturalcultivationtechnologythroughtheRiceIntensificationSystem,integratedcropmanagement,andtheuseoflowemissionricevarieties;(2)Utilizationoforganic fertilizers and biopesticides in the form of subsidized organic fertilizer andprocurement of Processing Units Organic Fertilizer (UPPO); and (3) Utilization ofmanure/urineandagriculturalwasteforbiogas.

EnergySector.Mitigationpolicies thathavebeencarriedoutby theMinistryofEnergy and Mineral Resources consist of 5 (five) main activities, namely: (1) Theimprovement of energy efficiency through the mandatory implementation of energymanagementforenergy-intensiveusers,increasedefficiencyofhouseholdappliancesandLED street lighting construction; (2) The development of new and renewable energythroughnewrenewablepowerplants,energy-savingsolarpowerlamps(LTSHE),solarstreetpublic lighting, utilizationof biogas andbiodiesel; (3)Thedevelopmentof low-carbonfuelsthroughtransportationfuelswitching(RON88toRON90and92),petroleumto LPG conversion program, natural gas-fueled urban public transportations and anincreaseinhouseholdnaturalgaspipelineconnections;(4)Theimplementationofcleantechnologythroughtheuseofcleancoaltechnologyandcogenerationatpowerplants;and(5)Post-mininglandreclamation.

Industry Sector. Mitigation actions in the industrial sector consists of, amongothers,theimplementationofenergyconservation/diversificationandtheapplicationofmodifications in the process and technology in the cement industry. Energyconservation/diversification implementation activities consist of 4 (four) activities,namely:(1)Energyconservationinenergy-consumingindustries;(2)ImplementationofEnMSandsystemoptimizationinenergy-wastefulindustries;(3)ImplementationofEnMS

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and energy efficiency in pulp & paper, steel, textile and food industries; and (4)Conservationofenergyinthecementindustry.

Transportation Sector. The mitigation policies carried out by the Ministry ofTransportation includeactions in the land, sea,airandrailway transportationsectors,suchas,(1)Provisionofbusstimulusassistanceforseveralcities;(2)InstallationofATCS(AreaTrafficControlSystems)innationalroadsegments;(3)Optimizationof aviationefficiency;(4)RejuvenationofPerformanceBaseNavigation(PBN)ofairtransport;(5)Reforestationandutilizationofnewandrenewableenergyinofairportenvironments;(6)Constructionofsolarcelltechnologyonshippingnavigationaidinstrument(SBNP);(7)ConstructionofdualrailroadlanesalongnorthernJava,inJabodetabekurbanarea,andtheTransSumatrarailwayline.

Waste Management Sector. Climate change mitigation policies in the wastemanagementsectorhavebeenfocusedin2(two)subsectors,namely(1)Wastewater,with the construction of infrastructure including off-site and on-site systems such asWWTP, IPLT, and MCK++; and (2) Waste, with the construction of landfills and anintegratedReduce,Reuse,Recycle(3R)wastemanagementsystem.

Box30.IndonesiaClimateChangeTrustFund(ICCTF)

The ICCTF is a trust fund institution that supports the Indonesian Government's efforts toreducegreenhousegasemissionsandemissionsintensitythroughtheimplementationoflowcarbondevelopmentactivitiesandclimatechangeadaptation.Formedin2009,ICCTFutilizesand channels domestic and international funds into projects that are in line with theimplementationofIndonesia'sRAN/RAD-GRK,tosupporttheGHGemissionreductiontargetbaselineof29%/41%in2030.

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PilotprojectICCTFDistribution

During2010-2018, ICCTFhadsuccessandshowedbestpractices inmanagingcomplexandinnovativeprojects, insectorssuchas land-basedmitigation,energy,marineorbluecarbonandclimatechangeadaptation,whicharerelevanttotheIndonesia'stargets,andveryusefultobescaledupandfurtherdevelopedbyMinistries/Institutionsandrelatedstakeholders.

Of the total 76 projects that have beenimplemented in 99 locations acrossIndonesia (46 land-based mitigationprojects, 22 adaptation projects and 8energyprojects),thepotentialreductioninGHG emissions obtained amounts to 9.5million tons of CO2e or about 5% of thetargetnationalemissionreductionin2017.Inaddition,ICCTFprojectsalsogiveadirectimpact on improving the economy andsocialpatternsofthecommunity.

Box31.MitigationActionbasedonCommunitybyTERANGIFoundation

TheBelitungMangroveParkisaprojectrunbytheTERANGIfoundationwiththesupportofICCTF.Theparktransformedlandspreviouslyusedforminingintoamangrovetourismparkasanefforttorehabilitateecosystemsandcarbonsequestration.Therearesixoutputsoftheproject,namely:(1)Planting330haofmangroveandcoastalforestandbuilding1observationand monitoring tower; (2) Increasing community capacity in monitoring the condition ofcoastalecosystems;(3)ActivelyinvolvingthecommunityinthemanagementoftheBelitungKKPD and BMP; (4) Providing an observation and monitoring medium, ecotourism, andeducation on mangroves and coastal forests; (5) Providing human resources in thedevelopment of marine ecotourism; (6) Increasing of community capacity in developingecotourismactivities.

The impacts of the projects carried out by ICCTF and TERANGI foundation include: (1)Involvement of other parties where several national and regional agencies have built

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supportingfacilities,suchastoilets,cleanwaternetwork,roads,campgrounds,rehabilitationofcoastalforests,fruitplantationsandportablegarbagecans;(2)Socially,themanagementofHKmJuruSeberangisconsideredtohavesolvedsocialproblemsregardingtheavailabilityofnewjobsandstoppingillegalmininginprotectedforests.Therewere20membersBUMDesbeforetheprojectstarted,butnowtherearecurrently134activemembers.Womenhavealsobeensuccessfulinimprovingthequalityofgoods,especiallyculinarygoods.Thesignaturefoodsoldisseafoodservedinlocalstyleofdiningknownasbedulang;(3)Theeconomicimpactcanbemeasuredfromtheadditional incomeof localresidents.KoperasimembersreceivedIDR3,000,000in2016annualprofit-shares,whileannualprofit-sharesrocketedtoIDR20,000,000the following year. (4) Terangi Foundation ICCTF funding management resulted in theelimination of illegal tinminers operating around themanagement area. The funding alsoincreased the mangrove population in the rehabilitation area of 50 ha, increased treepopulationinthecoastalforestrehabilitationareaof150hafromBPDASfunding.Wildanimalshavebeenabletoroamfreeandnowbecomerivertourismattractions;(5)Reduced20,231tonsofCO2einemissionswithinthefirstyearalone.

Intheend,theprojectproducedecotourismlocationsinrehabilitatedcommunityforestareasfromex-miningland,resultedincommunitiesactiveintourismandconservationmanagement,and funding for conservation. The ex-mining land has been registered under Minister ofForestryDecreeNo.SK.79/MenLHK-II/2015ontheestablishmentofanHKmWorkingAreaof757 ha. As a business, it has been registered under Governor Decree Kep.Babel No:188.44/717/DISHUT/2015onBusinessPermitforHKmUtilization.

Box32.PeatLandsPartnersFundIndonesia(DMGI)

PeatLandsPartnersFundIndonesia(DMGI)isaprojectunderthemanagementofWetlandsInternational Indonesiawhichhas thevisionof restorationandsustainablemanagementofpeatlandsbythecommunity,whichinsoplayspartinthereductionofemissions,forestfires,peatlandsubsidence,andalsoprovideanalternativeincomeforlocalcommunities.

Throughthe3Rapproach(Rewetting,Revegetation,andRevitalizationoflivelihood),DMGIhasfunded10community-basedprojectsin17villagesspreadoutin5provinces,namelyJambi,Riau, South Sumatra, Central Kalimantan and South Kalimantan from 2017 to 2019. DMGIndonesiahasbeencomplementingthegovernment’seffortstorestore2.94millionhectaresofpeatlandsby2020underthecoordinationofthePeatLandRestorationAgency(BRG),asstatedinBRGletterNo.S.31/KaBRG/D1/4/2017.TheDMGIsteeringcommitteeismadeupofBRG,KLHK,GGGI,Mongabay,WetlandsFoundationandalso10localproject-organizingCSOs,localgovernments,andbeneficiarycommunities.

DMGIiscurrentlyworkingwithbeneficiarycommunities,wherearound473womenand445men have been trained on 3R activities, whereas an additional 2,551 families have beencategorizedasnon-directbeneficiaries.Around44communitygroupshavebeenformedandhave restored 4,505 ha of peat lands, also established 93 ha of sustainable peat landmanagement pilot project area. In terms of policy, alongside the PfR program, 6 VillageRegulation draft on peat landmanagement and forest fire prevention have been issued, 1DistrictRegulationdraft onwet land vegetation conservation is currently in the legislation

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processand1villageforesthasbeenestablished.IntermsoflivelihoodfromDRR,1koperasihasbeenestablishedand1observationposthasbeenbuilttodetectfires.

Tothispoint, thereplicationandscalingupofprojects isstillamajorchallenge.Manylocalregulations are still yet to fully accommodate 3R activities, especially in peat land priorityprovinces.Harmonizationofregulationsatthenationalandprovinciallevels,strongpoliticalsupportfromheadsof localgovernmentsandthecapacityofcommunitiesandCSOsinpeatlandmanagementareallinneedofimprovement.

B. Challenges

a. Minimum attention to the characteristics of multi-disaster threats indevelopmentgrowthandequity

Animportantpartofriskreductionanddisastermitigationistheunderstandingofthedisasterandsocialcharacteristicsoftheregion.Eachrespectiveregionhasdifferenttypesofdisasterhazards.Someareasarevulnerabletofloods,droughtsandotherhydro-meteorologicaldisasters.Mostareasarevulnerabletoseveralcombinationsofvariousdisasterhazards.Theinfluenceofhazardsanddamagethatmayarisedependsonthreefactors,suchashazards,vulnerabilityandinstitutionalcapacityoftheregion.IntheWorldRiskReport(2016),Indonesiaiscategorizedasacountrywithahighdisasterrisklevelduetohighlevelsofexposureandvulnerabilitytodisasters.Infact,almost75percentofindustrial infrastructure and basic connectivity in Indonesia, including its supportingfacilitiesarebuiltinhazardzones.

Indonesia's population is projected to reach 305 million by 2035. Intensivedevelopmentinvestmentisalsogrowingrapidly,whichaimstobringprosperitytothepopulation.Butthishasalsoledtotheincreasingpotentialnumberofpeopleaffectedbydisasters. A comprehensive framework is needed for disaster resilience so that thepopulationisprotected.Theframeworkcanincreaseinvestmenttoreducedisasterrisk,improve financial security, and improve adaptive social protection. Projection-basedinvestmentforriskreductionisneededtoreducethegeneralimpactofdisastersandtobringmanyadditionalbenefitstothenationaleconomyandsociety.

b. Thelackofadisaster-preparednessculture

Preparedness in dealingwith disasters has not been embodied in the culture ofIndonesianpeople.The resultsof apreparedness index studyofdistricts andcities inIndonesiain2012showedthatcommunityandlocalgovernmentpreparednesswasstilllow. In2004, theAcehearthquakeandtsunamipropelledthegovernmentto issuethe2007DisasterManagementActandchangedtheparadigmofaddressingdisasterstobemore proactive, preventive, and emphasized preparedness and risk reduction. Someregionscurrentlyalreadyhavedisastermanagementregulations.However,governmentpreparedness and the legislation alone are not enough. The disaster awareness andpreparedness of the community and all stakeholders needs to be increased. Thepreparednessindealingwithdisastersshouldbecomeapartoftheculture,aprocessofforming a resilient society in facing disasters. This process is long and continuous,transcendinggenerations.DRRmustbeinvestedinallsectorsofdevelopment.

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c. Suboptimalrecoveryofcriticalland

Therehabilitationof forestand landtorecoverthecritical landwithinthe forestmanagementunits (KPH) andwatershed (DAS)haveonlymet 35%of the2015-2019targetof5.5millionha.Thisisduetotheproblemofrightsandstatusofthecriticalland,aswell as the lack of optimal control of space utilization around thewatershed. ThisconditionisachallengeforIndonesiatobeabletoachievetheGHGemissionreductiontarget,takingintoaccountthatthelandandenergysectoristhemaincontributorinGHGemissions.Futureconservationeffortsandforestandlandrehabilitationprogramsareexpected to resolve issues regarding critical lands. However, this programmust firstclarifystatusoflandandobtainsufficientfunding.

d. Suboptimalenergydiversification

Energyisanimportantinstrumentinindustrialandproductionbusinessesandisthemaincapitalofeconomicgrowth.However,theCentralStatisticsAgency(BPS)notedthatenergyimportsisacontributorofIndonesia’sregionalGDPdeficit.DuetodepletionofIndonesia'sfossilfuelssuchasoil,gasandcoal,thedomesticenergysupplyisestimatedtoonlymeet75%ofthenationalenergydemandby2030andwillcontinuetodeclineto28%in2045.Optimizationofenergydiversificationmustbecomeanationalprioritybyincreasingtheportionofnewrenewableenergy.Thisway,itwouldbepossibletoincreasethedomesticenergysupply,whilealsoconsiderablyreducingGHGemissions fromtheenergysector.

e. Theinefficientuseofnaturalresourcesandtheproblemofwastegeneration

As a country which relies on the commodity and natural resources sector,Indonesia'seconomicgrowthispredictedtobeweakenedandhamperedifthedepletionofnaturalresourcesanddegradationofenvironmentalqualitycontinues.Forexample,Indonesia's forest cover continues to decrease every year. The average rate ofdeforestation that occurred during 1990-2017 reached 1 million hectares per year.Although the rate of deforestation has fallen to 480 thousand hectares in 2017, thereduction in land cover will continue due to the forces driving development. Theproportionofareaslackingwaterisalsoincreasing,especiallyontheislandofJava,wherethe ideal habitat for endangered species also continues todecrease. Thedevelopmentapproach that emphasizes the analysis of SDALH's and the efficient use of naturalresourcesmustbecomethemainpolicytosupportsustainabledevelopmentgoalsintheeconomic,socialandenvironmentalsectors.

In addition, the handling of pollutant sources has also been suboptimal. ThehandlingofdomesticwasteisstillbelowtheRPJMNtarget,onlyamountingto84.73%ofthe16.7milliontons/yeartarget,withwastereductiononlyamountingto31.1%ofthe4.5 million tons/year target. Another problem is the high level of marine pollution,especiallyplasticwasteinthesea,whichaddsuptoaround1.29milliontons/year.Thelevelofplasticwasteleakingintoriverwatersandeventuallytotheseaisevenpredictedto have reachedmore than 70%. In addition to causing environmental pollution, thisconditionhasalsoresultedinseriousdisruptiontomarinelife.

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f. Thelackoflocalgovernmentcommitmenttomitigatedisasterrisk,climatechangemitigationandadaptation

Attheprovincialanddistrict/citylevel,wheredisasterriskreductionandclimatechangemitigationandadaptationshouldbesubstantiallyimplemented,theseprogramshave not been fully incorporated into theRPJMD. The unequal understanding of localgovernments in formulating the right programshas been shown to be the obstacle inmainstreaming DRR and climate change management into regional development. Inaddition,theissueofclimatechangeisstillconsideredasanenvironmentalissue,eventhoughtheproblemofclimatechangeisadevelopmentissuethatneedstobeaddressedwithacomprehensiveparadigmchange,especiallyforleadersatthedistrict/citylevel.

C. TheWayForward

ThetechnocraticDraftofRPJMN2020-2024 includesseveralnationalprioritiespolicies,whichareimprovingthequalityofenvironment,increasingclimate,anddisasterresilience,andlow-carbondevelopment.ThestrategyfordisasterresilienceconsistsofdisastermanagementandincreasingclimateresiliencethroughtheNationalActionPlanfor Climate Change Adaptation (RAN-API). Whereas the strategy for low-carbondevelopment policies encompasses sustainable energy development, sustainable landrecovery, waste management, development of green industries, coastal and marineecosystemsrestoration.

Based on the 2019 Government Work Plan Document policies related to thedevelopmentofdisastersandclimatechangein2019,are:

1. TheDisasterManagementPriorityProgramisconductedtoreducethedisasterriskindexin136prioritydistricts/citiesingrowthcenterswithhighlevelofdisasterrisk.a. StrengtheningDisasterManagementCapacity;

Theobjectiveandindicatorofthisactivityistoincreasethenumberofapparatusandcommunitiesthatareresilienttodisastersinprimelocations.

b. IncreasingDisasterFacilitiesandInfrastructure;Theobjectiveandindicatorofthisactivityistoincreasethenumberofdisasterserviceswhichareresilienttodisastersatprimelocations.

c. EmergencyManagementandPost-DisasterRecovery;Thereare2(two)targetsandindicatorsofthisactivity,whichare(1)therescueof disaster victims and (2) the restoration of public services in post-disasterareas.

d. StrengtheningofDisasterManagement.The objective and indicator of this activity is to improve the performance ofdisastermanagementinprimelocations.

2. Climatechangemanagementprogramsthroughlow-carbondevelopment.

Lowcarbondevelopmentisanefforttoachievesustainabledevelopmentthroughthesynergyofactionstoreducegreenhousegas(GHG)emissionswhilemaintainingthebalanceofeconomicgrowthandpovertyreduction,sectorialandregionaldevelopmentstrategies and policies reflecting the available resources. Low-carbon development is

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aimedtocontinueeffortstargetingtheGHGemissionreductionof26%in2020and29%in2030belowtheGHGemissionsbaseline.Low-carbondevelopmentisalsoexpectedtohelptheachievementofIndonesia'sSustainableDevelopmentGoals(SDGs)targets.

The objective of cross-sector, low-carbon development sector is directed at theeffortstoreduceGHGemissionsandemissionintensity(emissionlevelperunitofGDP)in the main sectors, namely land-based sectors (peat land forestry and agriculture),energy-basedsectors(energy, industry,andtransportation),andthewastesector.ThereductiontargetofGHGemissionin2019by23.5percentisapotentialforreducingGHGemissions from programs and activities ofministries listed in the 2015-2019 RPJMN.WhereastheGHGemissionintensityiscalculatedbasedonthebasicfigureof2019GHGemissionsperGDP.

Policiesin2019directedtoachievethetargetsinclude:

a. Integrating the efforts to reduce GHG emissions into national and regionaldevelopment planning, taking into account the balance of economic growth andpovertyalleviation;

b. ImplementingtheeffortstoreduceGHGemissionsthroughco-beneficialactivitiesofpovertyalleviation(increaseincomeandalleviatepoverty);

c. ReducingGHGemissionsandintensityofemissionthroughkeysectorsinlowcarbondevelopment, such as land-based sectors (forestry, peat lands, and agriculture),energy-based sectors (energy, industry and transportation), Waste ManagementsectorandCoastalsectors(MangrovesandSeagrass);

d. Disseminatingandincreasingpublicawarenessregardinglowcarbondevelopment.

4.1.5 Goal16.Peace,JusticeandStrongInstitutions

Indonesia’s commitment is to prioritize equality and access to justice as animportant part of governance. This is in line with the Nawacita - nine developmentpriority programs and the government's vision to implement "Strong, Inclusive andSustainableDevelopment"asstatedinthe2015–2019RPJMN.

ThegovernmenthasalsomainstreamedGoal16inthe2015-2019RPJMNandwillcontinuetoimplementcommitmentstoallocateappropriateresourcesforprogramsandpoliciesspecificallyconcerningcomprehensivelyfromthenationaltoregionallevelsintheperiodeof2020-2024.

ForIndonesia,implementingGoal16doesnotonlyfulfilllegalobligationsandnobleideas,butalsoplaysaimpontantroleinreducingpoverty,buildinghumanresourcesandeconomicgrowth.TheConstitutionofIndonesiaclearlydescribestheeffortstopromotepeacefulsocieties,providingaccesstojusticeforall,andbuildingeffective,accountableand inclusive institutions and are, reiterated by our laws, and declared in multipleinternationalandregionalcommitmentswehavesigned.Goal16inspiresmanyparties,becauseallagreethatdevelopmentisnotpossibleduringconflictandcannotreachthe

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poor without the support of accountable institutions. Apart from fulfilling our legalobligations andmeeting our founding principles, the developmentwill not be able tofacilitate fair and equitable welfare when structurally excludes certain groups andsystematicallyplacingcertainpeopleinprolongeduncertainty.

Indonesiahasbeensuccessfullyachievingpovertyreductionandinequality,humandevelopmentandeconomicgrowthunderthesustainabledevelopmentgoalsonhealth,educationanddecentwork.DespitenotableprogressmadebyIndonesiaonthosesectors,disparitiespersist,andprogramshavebeenrunningwithoutsufficientinformationandconsiderationonwhether thevulnerablepopulationssuchaswomen,children,peoplewithdisabilitiesandpeoplewithcertainreligiousandethnicidentities,areenjoyingorbeingdeprivedoftheexistingservices.Lackof inclusiveattentionforthesevulnerablegroups drives health, education, social protection livelihood investments and policiesaway from individuals who were at the greatest suffering. This makes any sign ofaggregateprogressrunstheriskofhidinginequalities.

Goal16,therefore,providesaframeworksothatdevelopmentisequitableanddoesnotleaveanyonebehind.AllsectorsmustapplyaGoal16lensintheireffortstoclosetheexistinggapsandendinequality.TherearefivefoundationsestablishedinGoal16thatform the three prongs of Peace, Justice, and Strong Institutions, that necessitate thesuccessofendinginequalitiesasvisualizedonFigure81below.

Figure81.PathwaytoIndonesia’sNationalGoalsandEqualityforAllthroughGoal16Implementation

The frameworkbuilton theproposedpolicyand lawenforcement thatbasedonevidenceanddatathatfreefromcorruptionanddiscrimination,whichbecomeagroundfoundationtoestablishAccesstoJusticeforAllonprovidingbirthcertification,promotingsafeenvironments,providinglegalaidandopeningaccessofinformationtopublic.These

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fivefoundationsareexpectedtoprovidebasicservices,legalsocialprotectionanddecentworkforallthatservedbythestronginstitutions.Thus,thisframeworkwillcontributetoreduce inequality, human development and creating an inclusive and sustainableeconomy.

A. TrendAnalysis

ThissectionpresentsdataandanalysistoachievementGoal16thatbasedontherelevantSDGsindicatorsforIndonesiathroughthree(3)maintargets,namely:1)Accessto Justice for All,measured by legal aid for poor people and birth certification for allchildren;2)PeacefulandInclusiveSocietiesforSustainableDevelopment,reflectedbytheachievementofindicatoronviolenceofchildren,safetyenvironment,humanrightsanddemocracyimplementation;and3)Effective,Accountable,andInclusiveInstitutionsatalllevels, determined by prevention of corruption, governance financial accountabilityreport,andpublicaccesstoinformation.

AccesstoJusticeforAll

1. LegalAid

Indonesiarealizedthatpeoplecouldplungeintopovertywhenexperienceshocksintheir life.Theseshockscanbearesultofnaturaldisasters,crop failuredue toclimatechange, illness, or legal charges.When being put through legal proceedings, poor andvulnerableindividualswereoftenleftwithoutsufficientlegalaidtodefensetheirrights.

Asaresponsetothis,longbeforetheconceptualizationofGoal16started,Indonesiahas launched and has been implementing the national strategy on Access to Justice(StrategiNasionalAksespadaKeadilan,SNAK)and lateramendin2013,andLegalAidLaw No. 16 year 2011. One of SNAK’s goal is the equal and fair distribution ofdevelopment.Thispolicyacknowledgestheneedofcourtsystemreformtoachieveanequaljusticeforallandshowsthateconomicgrowthisnotonlyreflectedbyreductionofpovertyandsocialinequality.Inaddition,equalitywillnotbeachievedintheabsenceofinclusiveandhumanrights-baseddevelopment.

The implementationofLegalAidLaw isa transformationalprocesswithvariousachievementforthelasteightyears.Therefore,manylegalaidaccesseswhichpreviouslyorganized by non-state actors is now strengthened by the Law into a collaborationbetween the government and non-state actors. Through this collaboration, non-statesactorhasbeeninvolvedbythegovernmenttoprovidelitigationandnon-ligationlegalaid.Besidestosupporttheimplementationoflegalaidforpoorandvulnerablepeopleseekingfor justice. The National Law Development Agency (Badan Pembinaan HukumNasional/BHPN)undertheMinistryofLawandHumanRightshavearoletodeliverthepolicyimplementationandtocoordinatetheinstitutionalcooperationmechanism.Apartfromthat,theLawhasbeencontributedintheincreasingnumberofproficientadvocatestorepresentlegalaidcasesandtoraisefundforlegalaidorganizations.

Upuntil2018,thenationallegalaidfundhasgrantlegalaidforthousandsofpoorandvulnerablepeople.Theallocationoffundhasbeendistributedto524organizationsandhaverepresents41,719poorpeopleonlitigationprocessand83,000ofnon-litigationactivitiesfrom2015to2018.

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Figure82.NumberofPeopleReceiveLitigationAidandactivitiesofNon-Litigation,2016-2018

Source:BPHN

ThecommitmentofJudicialInstitutionistoimplementLegalAidLawandalsotoimprovetheiraccessserviceforpoorandvulnerablejusticeseekers.Theseservicesareavailable to marginalized individuals or groups such as children and persons withdisabilities,andthosewhoareeligibleforapovertystatementletter(SuratKeteranganMiskin, SKTM)orotherproofof their receivingothergovernmentassistances, suchasconditionalcashtransfers(ProgramKeluargaHarapan,PKH)orfoodsubsidy(Raskin).ThecommitmentwasrealizedwiththeissuanceoftheSupremeCourtCircularLetterNo.10Year2010thatwaslaterstrengthenbySupremeCourtRegulationNo.1Year2014ontheGuidelines for Provisionof Legal Services for thePoor in Court. Through this, theSupremeCourtinvestedtheircourtresourcestoprovidesupportsforthoseinneedinaformofhearingsoutsideofthecourtandclosertothecommunity,waiverofcourtfees,andhelpingassistancetoassistpeopleinnavigatingcourtprocessesoutsideoflitigationinlegalaidposts.

Through the delivery of the mobile courts, court fee waiver grants, and legalconsultationposts,millionsofIndonesianswereaided.During2016to2018,therewere289,976individualsreceivedcourtservicesthroughhearingsoutsidethecourt,731,768of legal aidposts, and267,976of court feeswaiverprovided forpoor andvulnerablepeople.Currently,theseserviceswillremainapriorityintheIndonesianSupremeCourt’spolicy.

8,005

14,981

18,733

1,188

3,255

78,557

2016

2017

2018Year

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Figure83.NumberofLegalAidReceiver,2013-2017

Source:BPHN

Box33.MeasuringtheImmeasurable:DevelopmentofAccesstoJustice

Index

The exceptionally progressive development of Access to Justice Index was initiated byConsortium Access to Justice consisting members from the Access to Justice Consortiumconsisting of Indonesian Judicial Monitoring Society (MaPPI FHUI), Indonesian LegalRoundtable (ILR) and Indonesia Legal Aid Foundation (Yayasan Lembaga Bantuan HukumIndonesia, YLBHI). The interesting thing is, the development of this index has also involvedsomegovernmentinstitutions;MinistryofNationalDevelopmentPlaning,MinistryofLawandHumanRights,andCentralBureauStatistics.Thiscollaborationisasignthatthegovernmentandnon-governmenthavethesameinteresttobringjusticetoallparties.

Theideatodevelopthisindexisbasedontheimportanceofameasuringinstrumenttoenablesee thealignmentsof justiceandalso servesasbasis for thegovernment to formulate legalpoliciesinIndonesia.Additionally,itisbelievedthattheindexwillbecomeoneofthesourcestosupporttheevaluationimplementationofLegalAidinIndonesia.

Theprogramfortheindexdevelopmentfocusesonfour(4)stages,namely:1.Initialstudyonpreparationofdefining“AccesstoJustice”,2.Developmentofmeasuringtool,3.Usageofthemeasuringtoolunderthenationalscopeand4.PublicConsultation.Asoftoday,Consortiumareintheprocessofdefining“AccesstoJustice”inthefirststage.TheutilityofAccesstoJusticeIndexisaformofinclusivetorealizethepledgeofSDGs“leavenoonebehind”

(Source:AccesstoJusticeConsortium)

2. Detaineeswhoexceededmaximumincarcerationtime

Apart from the legal aid system, prisons and detention centers informationmanagementsystemhasbeenestablishedsincein2015ton2017.Thissystemallowsamore transparent and accountable way to monitor any changes in some selectcorrectionalfacilitiesinthecountry. In2015to2017, itwasreportedthattherewasasmallproportionofpre-trialdetaineeswhoexceededtheirmaximumincarcerationtime

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allowedbylawat2.6%,2.9%,3.1%,and3.1%everyyear,respectively,andalthoughtheproportionisrelativelysmall,theexceedingnumberofdetaineesinprisonsisasignthatthe application of correctional systemhasn’t fully applied, not tomention the greateramountdetaineesfee.In2019-2023,IndonesianGovernmentwillcontinuetorevitalizethe correctional system as part of a broader criminal justice reform goal throughstrengthening the ability of correctional institutions to ensure social reintegration forcriminal offenders, and policy reform to support alternative measures to reduce thenumberofpeoplebeingdetainedorimprisoned.Basedonthe2017UNICEFSDGsbaselinereport,thereareatleast22%ofminordetaineesstillwaitingforthefinaljudgement,with97%ofboyspredominantlymadeupthechilddetentioncenter.

3. BirthCertificate

The state is obligated to implement the equal justice principles for each and allcitizens,andnotmerelyforanindividualwhoarefacinglegalissues.Legalidentityisasign for the recognition and basic protection of a human existence, granted from theofficialbirthregistration.

Childrenwithbirthcertificationhavegreateraccessofbasicserviceswhichplayingabigroleonthefurtherqualityoflife,namelyeducation,decentwork,accesstohealthandsocialassistanceforthewelfare.TobeeligibleforNationalHealthInsurance(JaminanKesehatanNasional,JKN),apersonmustbedocumentedinFamilyCard(KartuKeluarga,KK)whichlinkedtothebirthcertification.Thebirthcertificationisalsoarequirementtoacquire the National Identity Card (Kartu Tanda Penduduk, KTP) to ensure a greateraccesstogovernmentsocialassistance.Female-headedhouseholdswithKTParemorelikelytoreceivesocialassistancecomparedtothosewithoutKTP.

Intheyear2018,83.55%children(aged0-17)(StatisticsIndonesia)werereportedtohaveabirthcertificateandthegovernmentisconfidentthatthe85%targetbyendof2019setinthemid-termdevelopmentplan(RPJMN)willbeachieved.Forthepopulationof children living in the poorest households or the bottom two quintiles (the poorest40%), thebirthcertificatecoveragehasbeensurpassed the201877%target (77.4%)(Figure84)

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Figure84.ProportionofBirthCertificateforChildren(0-17Year)bySocialEconomicStatus,2014-

2018Source:StatisticsIndonesia

IndonesianGovernment is tryingtoreachtheyoungerpopulationduetothe lowpercentage of birth certificate coverage for children under five years old (71.92% in2018). Thisnumber showa slowprocessof legal identitydocumentation for childrenunder five years old, compared to other age groups. This indicate the inequality onimmediatedocumentationafterbirth,specifically forchildrenunder5yearsold inthepooresthousehold(64.45%).Effortstowidenthescopeofimmediatedocumentationofbirthregistrationandlegalidentityforallcitizenremainsagovernmentpriorityfor2020-2024.Inresponsetothis,IndonesianGovernmentisstillworkingondocumentingallthebirthcertificationandgrantinglegalidentitytoallandeachindividualunderthepriorityactivities of Citizen Administrative System and Civil Registration (Sistem AdminitrasiKependudukandanPencatatanSipil,SAKPS).

Figure85.ProportionofChildforUnder-1YearofAgehavingBirthCertificatebySocialEconomicStatus,2014-2018


77.71%79.92%

81.68%83.33% 83.55%

68.90%71.90%

74.30%76.70% 77.40%

60%

70%

80%

90%

2014 2015 2016 2017 2018

Percen

tage

Year

AllChildren Q1+Q2AllChildren

53.70% 53.60%50.90%

53.80% 51.80%

47.25% 46.30%43.05% 44.25% 43.95%

40%

45%

50%

55%

2014 2015 2016 2017 2018

Percen

tage

Year

Under-1 Q1+Q2Under-1

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Among children aged 0 – 17, there is the increasing number of birth certificatecoverageforthepastfiveyearsfrom77.71%(2014)to83.55%(2018),thisraiseishigherthan children from poor households, from 68.9% in 2014 to 77.4% in 2018. Birthdocumentationafterbirthhasrisenamongchildrenunderfiveyearsoldfrom71.23%in2014to71.92%in2018(StatisticsIndonesia)

Figure86.ProportionofBirthRegisteredbyAgeGroupandSocialEconomicStatus,2014-2018Source:StatisticsIndonesia

Figure87.DistributionofBirthCertificateofDeficiencyforunder-5YearofAgePopulationbySocialEconomicStatus,2014-2018


2014 2015 2016 2017 2018AllChildren 77.71% 79.92% 81.68% 83.33% 83.55%Q1+Q2AllChildren 68.90% 71.90% 74.30% 76.70% 77.40%Under-5 71.23% 72.65% 72.54% 73.18% 71.92%Q1+Q2Under-5 62.62% 64.45% 64.36% 65% 64.45%Under-1 53.70% 53.60% 50.90% 53.80% 51.80%Q1+Q2Under-1 47.25% 46.30% 43.05% 44.25% 43.95%

30%40%50%60%70%80%90%

Percen

tage

AllChildren Q1+Q2AllChildren Under-5

Q1+Q2Under-5 Under-1 Q1+Q2Under-1

34% 33% 35% 36% 35%

26% 27% 25% 26% 25%

19% 20% 19% 20% 19%14% 13% 14% 13% 14%7% 8% 7% 6% 8%

2014 2015 2016 2017 2018

Percen

tage

Year

Poorest Q2 Q3 Q4 Richest

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Otherthanthat,rregionaldisparityisalsoofaconcernofIndonesianGovernmentin providing access to the registration of birth certificate. Indonesia’s population datamanagement system (Sistem Informasi Administrasi Kependudukan, SIAK) shows thatbirthcertificatecoveragein24of34(over70%)provincesinIndonesiaisstillbelow85%(SIAK,perAugust2018forchildren0–18yearsold).Apartfromthis,theprovincesintheeasternpartofthecountryfacedthebiggestchallenges.Papua(47.62%),WestPapua(51.2%),Maluku(61.92%),EastNusaTenggara(70.76%),andNorthMaluku(76.82%).

PeacefulandInclusiveSocietiesforSustainableDevelopment

1. Peacefulsociety

Democracy and individual freedom are conditions to realize a peaceful society,while discriminatory practices against vulnerable groups can hinder inclusivedevelopment. From the 2017 data, Indonesia observes a 20% points decrease in theproportionofpeoplewhofeelsafewalkingalonearoundtheareatheylive,from73.57%in2014to53.32%in2017(StatisticsIndonesia,SUSENAS).OurCriminalStatisticsrecordthenumberofhomicidecasesinaverageof1,300casesannuallyinfouryears(StatisticsIndonesia, 2018). As a signal of people’s access to the police, Indonesia’s CriminalStatistics recorded annual proportion of victims of a crime who reported theirvictimizationtothepolice.Thedatashowsthattheproportionisonlyaround20%.In2015,theproportionwas18.73%,in201618.9%,in201723.44%.Thelackofavailabilityofdataseriesintheseindicatorsremainsachallenge.

2. ViolenceAgainstChildren

Long-termeffectnegativeaffectcanhappenwhenviolenceoccurstowardschildren,impactingontheirhealthandeducationquality.Asameanstoestimatingthenationalprevalenceofchildhoodviolenceandviolenceagainstwomenandgirls,thegovernmenthasallocatedsignificantresourcesandconductedanation-wideViolenceAgainstWomenandGirls Survey (SurveiPengalamanHidupPerempuanNasional, SPHPN) in2016andViolenceAgainstChildrenSurvey(SurveiNasionalPengalamanHidupAnakdanRemaja,SNPHAR)in2018.Thesetwocross-sectionalsurveysfoundthatchildhoodviolenceandviolenceagainstwomenandgirlareseriousproblemsaffectingupto62%girlsand61.2%boysaged13to17yearsandalso1from3(33.4%)girlsaged15to64years.Inadditiontohavingthedescriptionoftheproblems,thegovernmentisanalyzingthesetwodatasetsfurthertogainmoreinsightsonthedeterminantsofriskfactors,protectivefactors,effecttohealth,andhelp-seekingbehaviortoinformprogramming.

Meanwhile in2014,Statistics Indonesiaestimatedthat therewasaround55%ofhousehold with children aged 1-14 years who have experienced any physical abuseand/orpsychologicalaggressionbycaregiversinthelast12months(StatisticsIndonesia,SUSENAS).Prevalenceofviolenceagainstboysandgirlswereestimatedat38.62%forboysand20.48%forgirlsin2013basedonSurveyofViolenceAgainstChildren(SurveiKekerasanterhadapAnak,SKtA).In2015,datafromMinistryofSocialAffairs,MinistryofWomen’s Empowerment and Child Protection, Statistics Indonesia, and BAPPENASestimated proportions of 6.28%women and 6.37%men aged 18-24 has experiencedsexualviolencebyage18(SKtA).

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Box34.WaystoInclusion:VillageChildren'sForum(ForumAnakDesa/FAD)toVoiceChildProtectionIssuesinVillageDevelopmentPlanningConsultation(MusyawarahPerencanaandanPembangunanDesa/

Musrenbangdes)

StrengtheningCapacityoftheVillageChildren'sForum(FAD)tovoicechildprotectionissuesinMusrenbangdes isaprogramestablishedbyAliansiRemaja IndependenFoundation (ARI)andRutgersWPFIndonesiaandPlanInternationalIndonesia.Theaimofprogramistoprovidecapacity building for organizations based, youth aged 10-24 and children aged under 18(SubnationalChildProtectionCommission(KomisiPerlindunganAnakDaerah,KPAD),VillageChildren's Forum, and other NGOs) on the importance of meaningful youth or childparticipationfromvillagetonationallevel.Thecapacitydoesnotonlyprovidethecapacityofchild protection issues, but also the capacity for advocacy, leadership and organization, forexample getting involved in the process of Development Planning Consultation Village inMenoroVillage,WoroVillage,NgasinanVillage,MojosariVillage,RembangRegency,CentralJava

Theresultsofprogramimplementationoverthepast2years(2017-2019)areasfollows:

1. VillageChildren'sForum(FAD)knowwhichpathstheycanoptimizetoengageandvoicechildren'sneedsatthevillagelevel

2. Village Children's Forum (FAD) which has been capacitated is able to participatemeaningfullyinplanning,implementationinMusrembangdes

3. VillageChildren'sForum(FAD)canraiseawarenessaboutchildprotectionissuesinthecommunity

Besidesthe impactorresultsreceived, therearestillsomechallenges faced, includingthoserelatedtochildrenandadolescentswhohavetodividetheirtimetobesociallyactiveandtheirobligationtostudyformally(schoolormadrasah).VillageChildren'sForumalsohavelimitedresources on financing the involvement of personal or group in village development. In itsimplementation,commitmentfromthegovernmentorotherstakeholdersisneededtoprovidespaceandsupporttheactivitiesofyoungpeople.

(Source:AliansiRemajaIndependen)

AsoneoftheformsofviolenceagainstchildrenasstipulatedinGoal5SDGs,datain2018(StatisticsIndonesia)estimate11.2%prevalenceforfemalesaged20to24whowere married before they turned 18. Even though child marriage in Indonesia hasdecreasedinthelastthreedecades(1985-2015),thecurrentestimatesstillputIndonesiaas having one of the highest child marriage prevalence in the region (East Asia andPacific).Evidenceindicatesthatchildmarriage,aspresumablyotherformsofchildhoodviolence,representsahiddenproblemofinequality.Amongfemalesaged20to24whoweremarriedbeforetheyturned18,morethanhalfwerefromthebottom-twowealthquintiles,suggestingthatchildmarriagedisproportionallyaffectschildrenwholivedinvulnerablehouseholds.Thegovernmentcommitstoreduceprevalenceofchildmarriage,amongothers through theamendmentof theMarriageLaw,especially concerning theminimumageofmarriage;andthedevelopmentofanationalstrategyforthepreventionofchildmarriagein2019.Themultistakeholderseffortbetweenstateandnonstateactorsto amend this Marriage Law is presented by CSO on the Box 35 below. In 2016, the

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governmentcommittedtobeingapathfindercountryinendingviolenceagainstchildrenasapartoftheGlobalPartnershiptoEndViolenceAgainstChildhood.

Box35.“STOPChildMarriage”Movement

Indonesiahascommittedtoreduceprevalenceofchildmarriage,bymakingitasamovementtopreventandstopchildmarriage.Thismovement isacollaborativeeffortsofgovernment,journalists,academics,civilsocietynetworksthroughoutIndonesia,especiallyfemaleclerics,grassrootswomen'sorganizations,non-governmentalorganizations(NGOs)whoworktofulfilltherightsofwomenandchildren,particularlyinhealth,education,employmentandpovertyreductionsectors.Thisefforthasbeencarriedoutsince in1990satvarious levels,byusingcriticalawarenessstrategiesatthevillagecommunitylevel,women'sorganization,data-basedpolicyadvocacy,campaign,JudicialReviewoftheMarriageActin2014anditwascontinuedin2017.

The movement has encouraged local initiatives to carry out the process of women'scommunities awareness and succeeded in producing champions who are actively makingeffortstopreventchildmarriages.Therehavebeenseveralpoliciestopreventandstopchildmarriages,includingvillageregulationsinLombok,WestNusaTenggara(NTB)Province,Bone-SouthSulawesiProvince,GresikRegentCircularLetter inEast JavaProvince,GunungKidul,YogyakartaProvince,andNTBGovernorCircularLetter.

On April 20, 2018, the President of theRepublic of Indonesia stated his strongcommitment on legal protection toprevent child marriages. The effort to"Prevent and Stop Child Marriage" hasshown rapid progress. In December2018, Indonesia's Constitutional Court(Mahkamah Konstitusi, MK) throughConstitutional Court Decision No. 22PUU-XV / 2017 removed marriage agediscrimination for girl as stipulated inMarriageLawNo.1of1974onMarriagethat regulates minimum legal age ofmarriageforgirlis16yearsto19years

or equivalent to minimum legal age of marriage for boy. The Ministry of Women'sEmpowermentandChildProtectionandsupportedbytheMinistryofReligionoftheRepublicofIndonesiainitiatedandledthislawrevision.

TheConstitutionalCourt'sdecisionwasfurtherfollowedupwiththe"StopChildMarriage"Movement led by the Ministry of Women's Empowerment and Child Protection. Thismovement is an collaborative action and movement along with 11 (eleven)Ministries/government Institutionsand65 (sixty-five)women'sandchildren'sNGOs,medianetworksthatincreasinglystrengtheningandreinforcing"StopChildMarriage"movement.

Theinvolvementofallthesestakeholdersistoanswerthetoughestchallengesinreducingtheprevalenceofchildmarriagespecificallyforfemalesaged20to24whoweremarriedbeforetheyturned18whichisstillquitehighinsomeprovinces likeCentralKalimantanandWestSulawesithatreached19%(2018).Thehardestchallengeisthestrengtheningofconservativeviews,especiallywithtraditionalandreligiousnorms.Therefore,thesuccessofthiseffortrestsonmanymutuallyinfluentialaspects.Policychangesmustbeaccompaniedbyculturalchanges,

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perspectives,lawenforcementandcriticalawarenessandfulfillmentofrightsbasedongenderequalityforwomenandmen.Themovementalsoencourageslegalprotectiontopreventchildmarriage to ensure 80 million Indonesian children have the right to education (12-yearcompulsoryeducationprogram),rightsforreproductivehealth,freedomfromviolenceandliveaprosperouslife.

(Source:InstitutKAPALPerempuandanYayasanKesehatanPerempuan)

Nevertheless, Taskforce of Legal Enforcement and Prevention (Sub-Gugus TugasPencegahan dan Penegakan Hukum, SPPH) report estimates the number of humantraffickingisupto2.8per100,000citizenandupto1.3per100,000forchildrenwithspecial needs. In addition, around 16% of reported human trafficking case involvedchildren.(BAPPENAS&UNICEF,2017)

Box36.HealthyInternet-PreventsViolenceandExploitationofChildren

AnumberofAlliance toEndViolenceAgainstChildren (PKTA)membersnamelyChildFundInternational, Wahana Visi Indonesia, Sayangi Tunas Cilik Foundation, Yayasan PlanInternational Indonesia, ECPAT Indonesia, ICJR and ICT Watch (Mitra TIK IndonesiaAssociation) implemented some programs, advocacy and consultation for children in 15provinces. The name of program is Elimination of Violence against Children, focuses onachievingSDGs target16.2Endabuse,exploitation, traffickingandall formsofviolenceandtortureagainstchildren.

The implementation of Children's Consultation uses qualitativemethods in data collection,namelybodymappingmethods,villagemaps, focusgroupdiscussionsandphotographs.Thechildreninvolvedinconsultationarearoundaged13-17yearsandsomeareunderaged22inseveralplaces.Thefourtopicsreportedinthisreportare

a. Typesofviolenceagainstchildrenaccordingtochildren;b. ChildinputaboutPreventionofViolence;c. ChildinputaboutHandlingViolence;d. Recommendationsforgovernmentandnon-governmentaboutrelatedissues,includes

disseminatingontypeofviolenceagainstchildrenandcomplaintsservices,improvingthe role of parents in providing advice, creating agent of change among children,improvingteacherunderstandingonchildprotection.

The Alliance also implemented program to eradicate violence against. Children and theirecologicalenvironmentarethetargetstoimplementthisprogramwiththefollowingformsofactivities:CapacitybuildingandPolicyadvocacy.

Resultsoftheimplementationoftwo(2)activities,namelyfirst,capacitybuildingsuchasdigitalliteracyinschools,childsexualexploitationpreventiononlinetraining,capacitybuildingoflawenforcementofficers (APH)anddevelopmentofmaterialonHealthy Internet; the second ispolicyadvocacysuchasadvocacytothecapacityoflawenforcementofficers(APH)involvingIndonesianFinancialTransactionReportsandAnalysisCenter(PusatPelaporandanAnalisisTransaksi Keuangan, PPATK), socialization of digital literacy policies, and research on theresultsoftheAlliancetoEndingViolenceAgainstChildren(PKTA)budget.

SomechallengesfoundintheprogramsthathavebeenimplementedarenotallAPHs,especiallythepoliceandprosecutorsunderstandtheconceptofchildprotectionasawhole,theformsof

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violenceagainstchildrenoninternetareincreasinglydiverseandusethelatesttechnology.Duetothelowlevelofdigitalliteracyinthecommunities,willneedacomprehensiveDigitalLiteracyreinforcementtobeincludedinschoolscurriculum.

Besidesthechallenges,thereisachancetoendviolenceagainstchildren,suchasVillageChildProtection Group (KPAD), as considered very helpful in disseminating information aboutcommunityandchildreninvillage.TrainingonPreventionofOnlineChildSexualExploitationcanbe included inPATBMcadre’scapacitybuildingactivities fromtheministryofwomen'sempowermentandchildprotectionprograms.HealthyInternethasbeenadoptedbyMinistryof Communication and Informatics since 2008, and several others have also begun to beadoptedasCSRprogramsinseveraltelecommunicationscompaniesinIndonesia.

(Source:AlliancetoEndViolenceAgainstChildren–AliansiPKTA)

3. HumanRightsandNon-DiscriminativeAction

GovernmentofIndonesiaiscommitedtopromoteandprotecthumanrights.Severaleffortsincludethestrengtheningofinstitutionalandhumanresourcecapacityaswellaslegalframeworktopromotenon-discriminativelawsandpoliciesatthenationalandlocallevels.

Aspartofnationalmechanismthatpromotesaccountability, Indonesia’snationalhuman rights institutions continue to empower and strengthen their complaintmechanism on cases related to human rights. From 2015 to 2018, in total of 26,893reportswerereceivedbytheIndonesianNationalCommissionforHumanRights(KomnasHAM). During the same period, the Indonesian National Commission Anti ViolenceAgainst Women (Komnas Perempuan) received 5,136 (2018) reports of specificallyviolenceagainstwomencases(KomnasPerempuan).

Table5.HumanrightsviolationcasesreportedSourceofreporting 2015 2016 2017 2018NationalCommissiononHumanRights(KOMNASHAM) 8,249 7,188 5,387 6,069

NationalCommissionAntiViolenceAgainstWomen(KOMNASPerempuan)*

1,248 1,353 1,301 1,234

*particularlyviolenceagainstwomencases/report

Box37.InclusiveDevelopmentforVictiminRecovery

Peduliisapovertyalleviationprogramtargetingmarginalizedgroupsandworkswithpublicsocietyasakeyactorforsocialinclusion.ThisprogramismanagedbyTheAsianFoundation,withsupportfromtheAustralianEmbassy.IndonesiaforHumanity(IKa)managestheHumanRightsandSocialRestorationPillarsandworkswithseven(7)partnersnamelyRPUKinNorthAceh, PK2TL in East Lampung, IKOHI in East Jakarta, Foperham in Gunung Kidul andYogyakarta,Sekber65inSurakartaandKaranganyar,SKPHAMinPaluandDonggalaandPBHNusrainSikka,andhasreached11districts/cities.

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Thestrategycarriedoutduringthefour(4)yearsofPeduliprogramistoengagewiththelocalgovernment,bothwiththevillagegovernmentandthedistrict/citygovernment,collaborativeworkwiththecommunityofvictimsandcivilsocietynetworksatthenationallevelthroughtheJusticeandTruthDisclosureCoalition(KKPK)andpublicsocietynetworksatthe local level,especiallyfortheoutcomeofadvocatingforchangeofpolicy.Intermsoftheoutcomeofsocialacceptance,thestrategycarriedoutisbyincreasingtheculturalspacestobecomethemeetingpointbetweenvictimsandthepublic,aswellastobecomeaspaceforawarenessraisingonsocialinclusion.ThebeneciariesofthisprogramarevictimsandsurvivorsoftheAcehMilitaryOperationAreacase,Talangsaricase,theMay1998caseandthe1965PoliticalTragedy.

ThroughthePeduliprogram,therehavebeenmanyresultsobtained,includinginthefieldofaccesstoservices.DuringApril2017toJune2018,thattherewere5,525peoplewhowereabletoaccesspublicservices,includingadministrationdocumentsandothersocialservicessuchashealthservices,educationalservices,andmanyotherservicesthroughdirectchannelsbyLPSK(health services) or through local government in the form of BPJS PIB or health servicesobtainedfromlocalhealthcentersorPosyandu.

Onthesocialacceptanceaccess,socialinclusionspaceshavebeguntoopenupbetweenvictimsand the surrounding community. Cultural and social spaces contribute a considerablecontribution in various regions such as the celebration of the August 17 event in variousregions. In accessing policy changes, for example in Surakarta, it has succeeded in issuingPerwaliNo.20of2018concerningElderlyWelfare,inSikkaDistricthasissuedSikkaDistrictRegulationNo.13of2018concerningRegionalHumanRightsActionPlansthatformthebasisofthedevelopmentorientationofSikkaRegencyinthefuture.

(Source:IndonesiaUntukKemanusiaan-Ika)2014-2019

Despite of Indonesia’s endeavors in promoting and protecting human rights,challengesdoexist.Asof2018,accrossthecountriesthatconsistedby34provincesand514citiesandregencies,theMinistryofLegalandHumanRightsAffairsrecordedthatthere are 114 local regulationswhich are identified as discriminative againstwomen.Amongwhich,3havebeenrevisedand9havebeenrevoked.

Inthisregard,Indonesiacontinuestocarryouteffortsthatwouldmakelocalby-lawsandregulationsinlinewithnationallegalframework.Someoftheeffortsinclude:

a) The adoption of Joint Ministerial Regulation between theMinistry of Law andHuman Rights, and the Ministry of Home Affairs that sets forth human rightsparameterfortheformulationofbylawsandlocalregulations.

b) Consultations between the Ministry of Law and Human Rights and localgovernmentsregardingnewby-laws.

c) Enhancing capacity and knowledge on human rights for state apparatus inprovincesandcities

SincetheestablishmentofIndonesia’sHumanRightsCommission,variousstateagencieshavebeencreated,suchastheJudicialCommission(KomisiYudisial,KY)andGeneral Elections Commission (Komisi Pemilihan Umum, KPU), Public InformationCommission(KomisiInformasiPublik,KIP)andCorruptionEradicationCommission(Komisi Pemberantasan Korupsi, KPK). It is a reflection of Indonesia’s to upholdaccountabilityandtransparencyinitsGovernance.

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4. IndonesianDemocracyIndex(IDI)

As the third biggest democracy in the world, Indonesia is highly committed torealizingdemocracyandtorespectindividualfreedom,aswellastoenforcethelawandnon-discriminative practices, especially towards vulnerable groups to achieve aninclusivedevelopment.

IndonesiaestablishtheIndonesianDemocracyIndex(IDI)since2009,andprovince-based democracy has been developed since 2010. Indonesia Democracy Index scored72.11andcategorized“Moderate” in2017,comparedto2016scoreof70.09(increase2.2).

Table6.ScoreofIndonesianDemocracyIndexIndex 2014 2015 2016 2017

IndonesianDemocracyIndex 73.04 72.82 70.09 72.11

DemocraticInstitutionIndex 75.81 66.87 62.05 72.49

CivilLibertyIndex 82.62 80.3 76.45 78.75

PoliticalRightsIndex 63.72 70.63 70.11 66.63Source:StatisticsIndonesia

ThisIDInumberwasmeasuredusingthreeaspects;DemocraticInstitutionIndex,CivilLibertyIndexandPoliticalRightsIndex.Eachaspectconsistsofvariablesandeachvariable contains indicators. The increase number of IDI indicated the dynamic ofIndonesia’s democracy. Civil Liberty Index influenced by various indicator such asfreedom of speech or expression, freedom of assembly and freedom of association,freedomofbelief,andfreedomofdiscrimination. ThedecreaseofPoliticalRightIndexsignificantlyinfluencedbyindicatoronviolencedemonstrationsorstrikes.Theincreaseof Democratic Institution Index affected by the improvement of Regional’s House ofRepresentative(DPRD),politicalparties,andregionalgovernmentbureaucracy.

Effective,Accountable,andInclusiveInstitutionsatAllLevels

1. Anti-Corruption

Good governance and strong institutions have been evident as fundamentalenablersofsustainabledevelopment.Bydefinition,governancecanmeanallprocessesofdeveloping and implementing laws and policies. Law and policymaking andimplementationthatarebasedonevidenceandfreefromcorruptionanddiscriminationshouldbethebedrockofourdevelopmentpractices.

Indonesiaisstillfightingagainstcorruptpracticesthatharmvulnerablegroups.TheAnti-CorruptionBehavior Index (IndeksPerilakuAntiKorupsi, IPAK)wasdeveloped tomeasurethelevelofextortionandnepotisminthecountry.Thedataconsistsofpublicopiniononeverydaypracticesofauthoritiesandexperincesrelatedtopublicservice.

In2017,theIPAKshowmodestimprovementfrom3.59(2015)to3.17(2017),thendeclined to 3.66 (2018). A higher score means higher intolerance towards corruptpractices.

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Table7.IndonesiaAnti-CorruptionBehaviorIndex2014 2015 2016 2017 2018

3.61 3.59 n/a 3.71 3.66Source:StatisticsIndonesia

AnannualCorruptionPerception IndexpublishedbyTransparency InternationalrankedIndonesiainthe89th(score38)in2018from96th(scoreof37)in2017outof180countries,showingarealimprovementofpublicperceptionofwhethercorruptionoccursamongpublicofficialsandpoliticians.Moreover,Indonesiawasranked109thoutof189economiesontheindicatorofcorruptionintheWorldBank’s2016DoingBusinessreport,atamuchlowerrankcomparedtoMalaysia,Vietnam,andThailand. Inthe2015-2016WorldEconomicForumGlobalCompetitivenessReport,corruptionwasclassifiedastheleadingfactorhinderingeaseforengaginginbusinessinIndonesia(AsialinkBusiness).

Corruption remains one of the biggest challenges in Indonesia, impedingdevelopment and poverty reduction, the country’s economic potential and instigatinginjusticesduetoafewinpowergreatlybenefittingovertheunrealizedrightsofmany.Casesofcorruptionoccurredinawidespectrumofpublicandprivatesectors,affectingthe Indonesian judicial system, national police, public services, natural resourcesbusinesses,legislation,andcustomsaswellaslandandtaxadministrations.

Despiteallthechallenges,thereis increasingoptimismstranslatedintheformofstronger laws,sounderpolicies,consistentenforcements,and improvedpublic trust.Arecentrise inpublictrustwasduetothecontributionsoftheNationalCommissiononCorruption Eradication (KPK), open government practices demonstrated by emergingleaders within the government, both at national and subnational level, the strongerpresence of ombudsman institutions including at the subnational level, and themorestreamlinedprocessesinfewgovernmentdocumentapplications.

2. GoodGovernancePractices

To strengthen management and prevention of corruption, the IndonesianGovernmentimplementedatechnology-basedsystemofprocurement(e-procurement).Inrelationtothat,morethanathird(39.6%)ofpublicprocurementinIndonesiaalreadyusede-procurementproceduresin2018.However,thisachievementwasstillfarfromthetargetof60-70%utilization.ACSISstudyindicatesthatlocalgovernmentprocurementisoneofthekeyareasinneedofareform.Thestudyfound56%oftherespondentsbelievethatcorruptioniswidespreadingovernmentprocurementprocesses.

Thedevelopmentandapplicationofe-procurementistherightstrategy,howeveritsuseinallprocurementcyclesneedstobeboosted.Inadditiontohumanresourcesandfinancialcapacityissues,thechallengeinintegratingprocurementprocessesishighestatsubnationaladministrationslevel.

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Box38.CollaborationtoTackleIllicitFinancialFlow

Indonesia iscommittedtoachievingSDGsgoal16target4,which isby2030tosignificantlyreduce illicit financial flow, strengthen recovery and return of stolen assets and combat allformsoforganizedcrime.Itisshownbyprovidingsupporttocivilsocietyorganizationsthathasexpertiseandexperienceinresearchofillicitfinancialflows.

In early 2019, the GoI enthusiastically responded the research publication released byPerkumpulanPRAKARSAthatexaminedmorespecificallytheamountofillicitfinancialflowstothecommoditylevel.Ontheresearch,PerkumpulanPRAKARSAalsoestimatestheamountof illicit financial flows and estimates the potential of state revenues lost due to the illicitfinancialflows.PerkumpulanPRAKARSAresearchfocusesontheissueofillicitfinancialflowscaused by trade misinvoicing in three sectors (manufacturing, agriculture, extractive) byselectingsix leadingcommodities thathaveahighexportcontribution in Indonesia,suchascoal,copper,palmoil,rubber,coffee,andcrustaceans.

Inrespondingtotheresearch,theMinistryofMarineandFisheries(KKP)invitedPerkumpulanPRAKARSAtopresenttheresearchfindingsattendedbyhigh-rankingofficialsoftheMInistryto obtainmore comprehensive information and inputs as a reference for improving policyformulation. The Mininstry expressed their appreciation and asked the PerkumpulanPRAKARSAtojointlyconductfurtherstudiesregardingtheillicitfinancialflowsfromfishandpearlcommoditieswhicharemaincommoditiesundertheKKP.

Furthermore,theMinistryofFinancehasalsoinvitedPerkumpulanPRAKARSAtopresenttheresearchfindingstoallhigh-rankingofficialsoftheDirectorateGeneralofTaxationandaskedto collaboratetheefforttodevelopthemethodologytomeasurespecificindicatorsonillicitfinancialflows.

(Source:PerkumpulanPRAKARSA)

Goodgovernanceisalsomeasuredbythefinancialaccountabilityoflineministriesand their planning and budgeting aspect. In the implementation, the Governmentmaintainsahigh-levelofbudgetrealizationrate(94.1%in2017)andahigh-performancescoreinstatefinancialaudits.Therewasasteadyincreaseofthenumberofgovernmentinstitutions receiving an Unqualified Opinion (Wajar Tanpa Pengecualian, WTP) as aproportion of all audited institutions from 2015 to 2017 across different levels ofadministration. As per 2017, district level institutions were among the lowest inpercentageof receivinga clearedstatusamong thenational,provincial, andmunicipallevel.

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Table8.PrimaryGovernmentExpendituresasaProportionofTheOriginalApprovedBudget

2014 2015 2016 2017

94.7% 91.05% 89.5% 94.1%Source:MinistryofFinance

Achievementasshownonthetablesindicatesapositiveresulttotheeffortsofthenationalandsubnationalgovernmentinimprovingfinancialmanagementandreportthatismoreaccountable,efficient,andeffective.TheincreasingtrendshowabetterresponsefromthenationalandsubnationalgovernmentstotheconsiderationsandadvicefromtheSupreme Audit Board (Badan Pemeriksa Keuagan, BPK) throughout the years. Thisincludes data management of fixed assets; list of land-fixed assets, buildings andproperties;returnofprocurementtosubnationaltreasury(BPK,2018).

Table9.PercentageofUnqualifiedOpinionoftheMinistriesandLocalGovernmentFinancialReport

LevelofAdministration 2014 2015 2016 2017Nationallevel 58% 65% 84% 91%Provinciallevel 76% 85% 91% 97%City/Municipalitylevel 60% 65% 77% 86%Districtlevel 41% 54% 66% 72%

Source:SupremeAuditBoard(BPK)

Good governance is also demonstrated the accessibility of public services andinformationbythepublic.Intheareaofpublicservice,theIndonesianOmbudsmanhasbeenconsistentlyassessingthegovernmentinstitutions’compliancewiththestandardset inLawNo.25Year2009onPublicService.Thisassessmentaimstoacceleratetheimprovement of quality of the National Bureaucracy Reform (Reformasi BirokrasiNasional,RBN).The fulfillmentofpublicservicesalsoencouragesgoodadministrationandsupportsthepreventionanderadicationofcorruption.

Referring to the variables and indicators of Government fulfilment of standardpublicservices,thecomponentthatismostoftenunfulfilledonalllevelaretheprovisionof rights and services related to people with disabilities, breastfeeding mothers, theelderly,andothers.Furthermore,theOmbudsmanalsoassesstheinformationavailabilityandcomplaintproceduresforthepublic.

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Table10.PercentageofGovernmentMinistriesandLocalGovernmentthatcomplywiththeLawonPublicService

LevelofAdministration 2014 2015 2016 2017 2018Nationallevel(Ministry) n/a 27.27% 44% 35.17% 55.56%

Nationallevel(Agency/Body) n/a 20% 67% 33.33% 25%

Provinciallevel n/a 9.09% 39.39% 27.27% 62.5%

City/Municipalitylevel n/a 5,26% 29.09% 33.33% 36.73%

Districtlevel n/a 4.69% 17.65% 12.15% 31.66%Source:Ombudsman

3. AccesstoInformation

Since2008,IndonesiahasbecomeoneofthecountriesthatguaranteespublicaccesstoinformationthroughLawNo.14Year2008onPublicInformationTransparency.Afreeandindependentpressisoneofthepillarsofdemocracy.IntheIndexofPressFreedomreleasedin2014bytheIndonesianPressCouncil,Indonesianpresshavefreedomfromfeartoplaytheirroleindeliveringinformation.IndonesianpressfreedomisclassifiedasmoderatelyfreebytheIndonesianPressCouncilin2018.EventhoughpressfreedominIndonesiaisbecomingstrongerandmoremeaningful,andbetterinstitutionalizationofpublic information, however some issues still need to be addressed, among other thepressindependency,pressprofessionalismandaccountabilitytowardsthepublic,pressphysicalandnon-physicalabuse.

Theavailabilityofpublicinstitutionsthatcomplywiththe2008lawfluctuatedfromyeartoyearwith50.38%in2016anddroppedto39.29%2017.Thosefiguresrepresenttheproportionofpublicinstitutionsthatmettheirobligationsto,amongothers,announcepublic information, provide public information, and manage and document publicinformation. On amore positive note, the participation of public institution keeps onincreasing. In 2018, 62.83% or 289 out of 460 public institutions participated in themonitoringandevaluationoftheimplementationofthe2008law.

At the same time,National Commission for Information (Komisi Informasi Pusat,KIP) reports thepercentageofpublic informationdispute resolved throughmediationand/oradjudicationnon-litigationmeasuresasrelativelyincreased.Since2010-2017asmanyas2.803reportedcasesweresettledoutof902.

Furthermore,aspartoftheimplementationofthe2008law,KIPisresponsibletomonitortheavailabilityofatleastoneInformationandDocumentationManager(PejabatPengelolaInformasidanData,PPID)ineachpublicinstitution.Datafor2018showsthatPPIDavailabilityacrosspublic institutionsinIndonesiahasreached70.23%.However,thequalityofpublicinformationservicesremainsachallenge.

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Box39.CitizenVoiceandAction

The World Vision’s ‘Citizen Voice and Action’ (CVA) approach is a Social Accountabilityinitiatives byWahanaVisi Indonesia. The overall aimof the projectwas to improve publicservices.Thisapproachinvolvestrainingfacilitatorsatvillage level,whothen,withsupportfromprojectstaff,facilitateaseriesofprocessesatvillage,sub-districtanddistrictlevel.Thoseprocessesenablevillagersandlocalstafftoassessservicesagainstbothofficialstandardsandvillager-determined standards, to develop local plans for service improvement, and toadvocate to higher levels of the service delivery system for improvements. The projectoperatedinthreedistrictsofNTTprovinceinIndonesia:Kupang,SikkaandTTU,andinWestKalimantan:Sintang,Sekadau,Melawiwithatotalalmost120villages.

TheprojectsupportstotheachievementofSDGsTarget16.6Developeffective,accountableandtransparentinstitutionsatalllevels.Projectimplementationconsistsofcarryingouttheactivitieswiththeaimtodevelopeaccurateinformationaboutcitizens’rightsandentitlementsto services regarding maternal and infant child health services; strengthen relationshipsamong related stakeholders; educate residents, service providers and officials about theirrightsandentitlement;workwithvillagerstodevelopcitizenscorecardsinordertomonitorand improve theachievedstandardsand thequalityofservice;andhaveannualreviewsofachievement.

BasedontheresultsofmonitoringshowpolicyplanningandrealizationofthehealthsectorbudgetinKupangRegencyindicateKupangDistrictGovernmenthadcommitmenttoensuretherealizationofmaternalandchildhealthrightsbyallocatingtheannualhealthbudgetasaregionaldevelopmentpriority.Onthisbasis,KupangDistrictGovernmentison-trackposition.Additionally,thehealthbudgetisintop3outof21obligatoryfunctionsofKupangRegencyin2016-2019.AnotherbestpracticeofanprojectoperatedinWestKalimantanistheapplicationoftheCVAmodelin50villages(WestKalimantan)thathasimprovedmaternalandnew-bornhealth services. In East Nusa Tenggara, there is a statistically significant increase in theknowledge of Household survey respondents about the services provided at Posyandu,PolindesandPuskesmas.

Despitetheprogressmentionedabove,therearestillchallenges,amongothers,improvingthequality of deliberation as a forum for decision or policy making, implementation of socialaccountability approaches, especially in villages, is oneway to improve thequalityofbasicservices, and strengthening the policy system at the regional level including regulationsynchronization/harmonization,communityparticipationandsectoralregulations/policiesinvillageplanning/regionaldevelopmentandcapacitybuildingforvillageofficials.

(Source:WahanaVisiIndonesia)

4. WomenParticipation

Inclusive development is actualized through public participation, particularlywomen.Inthiscase,theGovernmentcontinuestoincreasetheparticipationofwomenaspolicy-makers.Therewere14.43%ofwomeninseniorpositionand13.06%inmid-levelpositioninbureaucraciesin2018.AccordingtoWomeninBureaucracySurveyconducted

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by the Ministry of Women’s Empowerment and Child Protection (KementerianPemberdayaanPerempuandanPerlindunganAnak,KPPPA),gender-responsivepolicieshavestrengthenedintheareaofpolicy-makersandwomen’sgroups.However,itisyettobe fully internalized in the bureaucracy system. The previous competency-basedparadigmwasnot able to address the gap inproportionbetweenmenandwomen inbureaucracy.Thus,anewequality-basedparadigmwasneededtoaddressthe issueofdoubleburdeninwomen.

Table11.Percentageofwomenassumingthedecision-makingpositionsingovernmentinstitutions

LevelofEchelon 2014 2015 2016 2017 2018

Seniorposition 20.66% n/a 13.81% 24.76% 14.43%

Mid-levelposition 16.39% n/a 12.55% 15.47% 13.06%Source:NationalEmploymentAgency(BadanKepegawaianNasional/BKN)

Meanwhile, the low percentage of women participations as legislatorsremainsaconcern,evenwiththequotasystemsetbythelaw.ThepercentageofwomenparliamentarymembersorlegislatorsinthenationalandsubnationalHouseofRepresentativeswasrecordedin2014tobeat16.6%forthenationallevel(DPRRI),16%for theprovincial level (DPRD),and14%for thedistrict/municipallevel(DPRD)(KPU).

Due to the lackofwillingnessofpoliticalparties toaffirm women candidates,according to the Law, there is a requirement of 30% quota for women to run forParliamentforeachpoliticalparty.TheNationalElectionCommission(KPU)hasrecordedalmost50%increaseofwomencandidatesfrom2014to2019(2.467womento3.194).Outof14politicalparties,thereare4politicalpartiesthathavenominatedthehighestnumbers of women candidates. In addition, political parties still need to implementcapacity building programs to enhance the quality of legislators including womenlegislators.

Box40.TIRAM(TowardsInclusiveNaturalResourceManagementin

Indonesia)

Asrichprovinceinnaturalresources,EastKalimantanisfacedwiththeproblemofdifferentinterestsintheuseofnaturalresources.Exploitationforcommercialinterestsontheothersideisoftenatoddswithdesire touse it for fulfillmentofdailyneeds (subsistence), large-scaleindustrialneeds,ortheinterestsofconservationeffortsontheotherside.Withtheexistingproblems, the regional government (both provincial and district/city) must develop amanagement mechanism to be able to accommodate different interests towards existingpotentialnaturalresources.

PrakarsaBorneoinitiatedtocreateTIRAM(TowardsInclusiveNaturalResourceManagementin Indonesia) program to anticipate the community’s interest in policymaking process thatregulatesnatural resourcemanagement.Theyuse strategy to increasepublic awareness toparticipate in themaking of regulations started from the lowest level (village, district, andprovincialregulation)toprovidecommunitycapacitybuildingtrainingsuchaslegaldrafting

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training,paralegals,andconflictresolution.Inaddition,PrakarsaBorneoalsoprovidessupportto Regional Governments in formulating regulations (regent, district and provincialregulations)byinvolvingcommunitiesthathavebeengiventrainingtobeabletoaccomodatetheinterestofaffectedcommunities.

Theprogramhasbeen implementedsinceNovember2017 - June2019andhaveproducedseveral results. Someof themare the issuanceofvillage regulations in3villages (KenohanDistrict,KukarRegencyandmakingdraftacademicpapersandgovernorregulation.

Stakeholdersinvolvedinthisprogramare:1. UniversityofBalikpapan2. UniversityofMulawarman3. LegalAidInstitute(LBH)ofBinaBangsaUniversity

Whilethebeneficiariesare:1. EastKalimantanProvincialGovernment2. KutaiKertanegaraRegencyGovernment3. PaserRegencyGovernment4. Villageofficialsandcommunitiesof6villagesinKutaiKertanegaraRegency5. Villageofficialsandcommunitiesof10villagesinPaserRegency6. NGOs/CSOsinEastKalimantanthatareengagedinenvironmentalandlocalcommunity

issues

On the other hand, there are still some challenges faced, including changes in mindset ofcommunity that the regulationmaking is government's obligation, not the community. Thegovernment thinks that the participation is already represented by village officials. lessonlearned from the program that has been implemented is that regulation is important if ittouchesontheeconomicinterestsandthecommunityneeds,forexampleincreasingVillageOriginalIncome(PendapatanAsliDaerahDesa,PADDesa),suchastheregulationofcleanwatermanagement by Village Owned Company (Badan usaha Milik Desa, Bumdes) or villageregulationrelatedtoCSR.Goingforward,itisexpectedthatvillageregulationcanbereplicatedinareasthathavethesamepotentialinmanagingtheirnaturalresources(cleanwater,CSR).

(Source:PrakarsaBorneo)

B. Challenges

Indonesia has internalized credo, “what can bemeasured, can be done”. In otherwords,thedevelopmentisaccountablewhendesignedandevaluatedbydata.Paralleltothis, what is hard to measure becomes a hidden challenge leading to undetectedinequality.Equalandinclusivedevelopmentareimpossibletorealizewhenpeopleareexcluded, and matters are statistically undetected. Thus, Indonesia’s commitment tostrengthened evidence-based governance and improved the way to identifyunmeasurable information. Problems occurs affected the most to vulnerable layer ofcitizen,therefore,itdeservesthebestactions.

Whydoessomeonegetleftbehindindevelopment?

Goal16representsthevoicesofthevulnerablegroupswhowereoftenignoredindevelopment,butmoretoensureinclusivity.Therearethreeareasorlayersofinequality

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indevelopmentcanleavesomepeoplebehind,andtherefore,creatinginequality.Theselayersalsodescribethreekindsofvulnerabilitythatareinterlinked.

Figure88.LayerofInequalityinDevelopmentthatcanLeaveSomeoneBehind

Inthefirstlayer,inequalityisoftencausedbylackofaccesstobasicservicesandeconomicopportunitieswhichmayoccurduetopovertyandremoteness.Inthesecondlayer,inequalityresultsfromtheirresponsivenessofpublicservicestoreachallpeoplewithout discrimination. that are reflected through the figures of income groups andregionalgaps.InIndonesia,thequalityandcapacityofpublicservicesinrespondingtheneedsof vulnerablegroups still varies, and this signals theunequal responsivenessofpublicservices throughout thecountry. In thethird layer, inequality isexperiencedbythose who are systematically excluded due to their social identities, such as women,children,peoplewithdisabilities,andpeoplewithcertainreligiousandethnicidentities.Aswegotothedeeperlayersofinequality,themoredifficultitisfortheGovernmenttoobtain adequate data and information as the basis for inclusive development. Theinequalityandgap ineach layer formsdifficult challenges toachieve thedevelopmentplan.Thosechallengesare:

AccesstoJusticeforAll

1. Challengetostartjusticeaccessforallspeciallytoensurelegalaidaccessstabilityforpoorpeopleandgroup,birthcertificatecanbeidentifiedasfollows:(1)TheinsufficientcapabilityofLegalAidOrganization(OBH);(2)theunevennumberofaccreditedOBHduetoIndonesia’sgeographicalproblem;(3)theoptimizationofadvocateandparalegalroletoprovidelegalaidtopoorpeopleandgroup.Thewaytoovercome thosechallenges including: (1)national legalguidancedan (2) theimprovementofavailablelegalaid.

2. Otherthanlegalaid,birthcertificateisamust-havebasicidentityforallchildrenasarequirementtoobtainhealth,social,andeducationservice.Inaddition,costandnetwork limitation on infrastructure is anothermain obstacle specially forpoorandvulnerablegroup.Thegovernmenthascomeupwiththesolutionofbirth

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certificate in younger population through 2015 MoU between 8 (eight) lineministries on the Acceleration on the Ownership of Birth Certificate for ChildProtection and Ministry of Home Affairs Decree No. 9 Year 2016 on theAcceleration of theBirthCertificateOwnership. These regulationsfacilitates theease of registering birth certificate the improvement of various approaches toacceleratecoverageofbirthregistration.Moreover,thecontributionofjudiciaryinstitutioncarriedthroughintegratedservicesalongwiththeMinistryofReligionAffairsandtheMinistryofHomeAffairsc.q.CivilRegistration.Theseservicesisintheformofconductingmarriagecertificateforcouplesfrompoorgroupthroughreligiouscourtorcivilcourt.ThisprocessisfollowedbytheissuanceofMarriageBookthroughtheCivilRegistryOffice(KUA)andbirthcertificatefortheirchildren.The government currently developing a comprehensive strategy for CivilRegistration and Vital Statistic, including the acceleration of birth registration,especiallyformarginalizedgroups.

PeacefulandInclusiveSocietiesforSustainableDevelopment

1. Challengesinsecuringapeaceandinclusivesocietyforasustainabledevelopmentto the communities specifically to vulnerable group indicatesby ahigh level ofchildrenviolence.Topreventandtoreduceviolenceofchildrenandhomicide,thegovernmentcarriesouttwostrategies;policymakingandrelevantdevelopmentprogram. Policy making strategies include: (1) Law No.17 Year 2016 on theImplementationofPERPPUNo.1Year2016ontheSecondAmendmenttoLawNo.23Year2002onChildProtectiontoEmphasizingthePunishmentforPerpetratorsofSexualViolenceAgainstChildren.Also,theMinisterofEducationDecreeNo.82Year2015onPreventionandControlofViolenceintheEducationalEnvironment;(2) 2016-2020National Strategy for the Elimination Violence Against Children(StransPKtA)asacross-sectorguidanceontheeliminationofviolencetowardschildrenthroughacomprehensiveintervention;(3)providingagoodtochildrenbycreatingChildrenFriendlyCity.

Relevantdevelopmentstrategicprograms,suchas:(1)theimprovementofForumAnak(ChildrenForum)roleasapioneerandinformantonviolenceprevention;(2)TeleponSahabatAnakandTeleponPelayananSosialAnak(CallCenterforChildren–TeSAandTepSA),operating24hour7daysaweek toreceivedcomplainsonviolence,mistreatment,exploitation,andneglectionofchildren;(3)strengtheningchild protection system by increasing human resource capacity on institutionwhich includes prevention, handling and rehabilitation of violence victims,exploitation, niglection and mistreatment by developing and strengtheningchildrensocialwelfareprograms;(4)strengtheningtheIntegratedServiceCenterforWomenandChildren(P2TP2A)andsupportedbytheTaskforce forWomenandChildrenProtection (SatgasPPA); (5)developmentofprograms topreventviolenceagainstchildreninschoolsbypromotingtheuseofpositivedisciplineforteachers and the development of anti-bullying prevention programs; (6)strengtheningthecapacityoffamiliesandsocietiesforthepreventionandearlydetectionofviolence,mistreatment,exploitationandneglectthroughincreasingtheroleofbusinesscommunity,massmedia,andpublictostrengthenfamily-basedcare and the Community-Based Integration Child Protection (PATBM); (7)Increasingpublicparticipation,includingchildren,throughdevelopmentofChildFriendlyDistrict/City.

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2. IDIisdesignedtocaptureevidence-baseddemocracyconditionineachprovincethroughoutIndonesia.IDIcanalsobeatooltoevaluateforthelocalgovernmentto develop the upcoming policies. Therefore, one of the efforts to improve IDIcapacityisbystrengthenworkinggroupintheregion.

Effective,Accountable,andInclusiveInstitutionsatAllLevels

1. Challengesinimprovinganeffective,accountable,andinclusiveinstitutionatalllevelsare influencedbyvarious factorssuchashigh levelof corruption.EffortstakenincludethepreventionandtheeradicationofcorruptionbyestablishingtheNationalStrategyforPreventionofCorruption(STRANASPK).Inaddition,annualparticipationactionprogramcreatedas a cross-sector commonanti-corruptionprogram.

2. Governmentinstitutionaltransparencytowardsthefulfillmentoflawsonpublicservices still face many challenges, such as: (1) preventing potentialmaladministrationandcorruptivebehavior;(2)upholdingconsistencyofrelevantregulation; (3) Fulfilling the rights of people with disabilities (4) Improvingpublication on complain handling mechanisms; and (5) Creating a servicesatisfaction measurement standard. Future programs on developing effective,accountable and transparent institutions at all levels include: (1) Internalmonitoringprogramonstatebudgetandnationaldevelopmentaccountabilityandalsotheassistanceonthestateinternalmonitoringsystem;(2)Optimalizationofstateservantsandbureaucracyreform;(3)Improvementprogramonthenationalprocurement system; (4) Subnational autonomy program; (5) Public servicemonitoring program; (6) Subnational development program; (7) Politics andgovernance program; (8) Democratic institution building and political processrefinement program; (9) National election monitoring program; (10)Improvement on politics, law and security coordination program; (11) Basicserviceexpansionprogram;and(12)Corruptionpreventionprogram.

3. Freedom of the press in Indonesia, especially in acquiring information, is stillinterferedbypoliticalandeconomicinterests.Subnationalgovernmentinfluenceinthelocalmediaisstillverypowerful,throughpaymentsforadvertising.Presscompliancetowardsjournalisticethicsremainsachallenge.Thisisevidencedbythenumeroushoaxesintentionallyspreadtothepublic.Further,challengescomein the form of physical and non-physical violence by some particular groupsobjectingpluralism.Persecutionanddoxingofjournalistisconsideredasaseriousoffence.Effortshavebeenconductedtoaddressthese issues,amongothers:(1)Promoting the implementation of journalistic principles and code of ethics; (2)Aligningtheinterestofthepressinbuildingdemocraticprinciples;(3)MaintainingtheindependencyofthepressIndonesianPressCouncilasaself-regulatorybody.

C. TheWayForward

Based on the Government Annual Work Plan Document, the policy directive toachievethethreemaintargetsofSDG16in2019andbeyondare:

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1. Policydirectiveon sustainabledevelopment includes, inter alia: realizing socialjustice; building capacity, technological skills, funding, and oversight in theprocess.Toachievesustainabledevelopmenttargets,effortstoundertakeinclude:1.)increaseinformationandcommunicationopennessthroughtheappointmentof a PPID authority in subnational governments; cooperationwithmassmediacompanies to increase public awareness, publish all planning and budgetingprocesses into the institutions’ websites, and publish financial performancereports of government institutions; 2.) increase public participation in policyformulation through public consultations within the process of planning,implementing, and evaluating policies, publish relevant information of eachgovernment institutions about their programs, and develop a proactiveinformation publication system, that are easily accessible by the public; 3.)improvebureaucracycapacity;4.)improvethequalityofpublicservicesthroughtheapplicationofPublicServiceStandardforallpublicserviceunits,accelerationof theapplicationof aneffectiveandefficient IntegratedPublicServiceSystem,applicationofa technology-basedpublicservicecomplaintsystemforallpublicserviceunits;and5.)GovernmentBureaucracyReformthroughexcellentpublicservice(fast,easy,simple,transparent,andresponsive),implementdevelopmentprogramsandgovernmentbudgetingbasedonacost-benefitanalysisthatishigh-quality,efficient,andeffective,andamerit-systembureaucracy.

2. Policy directive on child protection focus on improving the quality of life,protection from child abuse, exploitation, abandonment, and other forms ofviolence,aswellastheeffectivenessofchildprotection institutions.Policies forchildprotectionconsistsofseveralstrategies,whichare:1.)increasedfulfilmentofchildren’srightsandcreatingasafeenvironmentthroughchild-friendlyhealthservices, schools, playgrounds, information, and to promote children’sparticipationasrolemodelsforChild-FriendlyCities;2.)increasedpreventionofviolenceagainstchildren,includingincrisissituationsandpornography,aswellasprevention of child marriages through childcare training, discipline towardschildren, and safe use of internet access; 3.) integrated advocation/technicalassistanceonbirthregistration,anddenyapprovalofchildmarriagebyrelatedinstitutions including theReligiousCourt;4.) improvedcapacityof (a)planningstaffacrosslineministriesinMainstreamingtheRightsofChildrenthroughChildProtectionSystem,(b)humanresourcesinSubnationalTechnicalServiceUnitsforChild and Women Protection (Unit Pelayanan Teknis Daerah PerlindunganPerempuandanAnak/UPTDPPA),and(c)humanresourcesinotherrelatedunits;5.)advocationanddisseminationthroughpublicmediatoincreaseawarenessandpublicparticipationinincreasingfulfilmentofchildren’srightsandchild-specificprotection; 6.) guide implementation of Community-based Child ProtectionMovement (Perlindungan Anak Terpadu Berbasis Masyarakat/PATBM) at thevillage level;7. Increasetheroleofprofessionalbodies,businesssectors,mediareligiousorganizations,andcommunityorganizationsinchildprotection;and8.)periodiccoordinationtoimprovenetworkofcross-ministryandothergovernmentinstitutionsinstrengtheningandharmonizinglegalfoundations,aswellasthedataandintegratedservicesystemsforchildprotection.

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3. Legaldevelopmentaimedtowardstransparentandaccountablelawenforcementaswellasimprovingtheeffectivenessofpreventionanderadicationofcorruptionthrough policy directive: 1.) increase efforts to eradicate legal mafias throughstronger integrity and optimal oversight in the law enforcement system; 2.)improvethelegalcultureofcommunitiesthroughinformationdisseminationbylaw enforcement agencies and other relevant stakeholders; 3.) improveharmonizationandsynchronizationof lawonanti-corruptionandhumanrightsmainstreaming; 4.) improve the understanding of law enforcers and citizensthrougheducationandtrainingonhumanrights;5.)improvethequalityoflegalservices through: (a) mediation, small claim court, and other court servicesinnovation; and (b) immigration services, law administration, correctionalfacilities,andintellectualpropertyrights;and6.)improvethequalityandquantityoftechnologyandinformationtosupportlawenforcement.

4.1.6 Goal17.PartnershipfortheGoals

SustainableDevelopmentGoalsareaglobalcall,transmittedlocallyintopoliciesand actions, then accentuated through resource mobilization and stakeholderparticipation. Indonesia is in its pathway to achieve SDGs. The country mobilizesresources and invests the resources in productive physical infrastructure; afterward,capitalizes those assets to build cooperative interactions—among its domesticstakeholders,andwithglobalpartners-totranslatetheglobalcommitmentintoreality.

Theglobalcommitmentneedstobestrategicallyimplemented.Goal17isaboutthe

waysSDGsare implemented.Thischapterselects fourgroupsof indicators topresent,namely (1) resourcemobilization, (2) information technologyandcommunication, (3)dataandstatistics,aswellas(4)South-SouthandTriangularCooperation.Selectedduetothecompletenessofinformation,theseindicatorsmoreorlessdescribethemovementsoffinancialcapital,data,andcollaborationamongactorstoachieveSDGs.Theyareaboutresources;capitalizedandinvestedinfruitfulinfrastructuretomakepeoplecommunicateeachother,dataexchanged,andpartnershipdeveloped.

Challengestoachievethegoalsarenotfew;thusdiscussiononthechallengeswillbepresented.However,thelessonsneedtobedrawnandlearned.TheselessonscanbeusedtoimprovevariousSDGspoliciesinthenextcomingyears.

A. TrendAnalysis

ResourceMobilization

1. TaxRevenue

Undoubtedly,taxisthefuelthatallowsthegovernmenttoimplementSDGs,thusitsadequacyisvital.Thegovernmentkeepscontinuetoincreasethecountrytaxrevenue.Inthelastfewyearstheefforthasshowntheresults.Thetaxrevenue,asdisplayedin(Figure

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89), increases consistently from Rp835 trillion (2013), to Rp1,013 trillion (2015),Rp1,103trillion(2017),thenRp1,251trillion(2018).Thisisanimportantachievementknowing that another revenue source, namely non-tax revenue (‘Penerimaan NegaraBukan-Pajak’,PNBP),duetoanincreaseinglobaluncertainty,doesnotplayasimilarlevelofrole—onlyabout15-20%oftotalgovernmentrevenue.

Nevertheless, there is a challenge to increase tax revenueharmonicallywith theincreasing GDP. An increase in GDP is not yet optimally followed by a proportionalincreaseintaxrevenue.Astheconsequence,thetax-to-GDPratiofluctuatesaround11.3%(2013), 10.8% (2015), 9.9% (2017), and 10.2% (2018). Even, compared with theachievementofneighboringcountries(Figure90),the2018ratioof10.2%isthelowestIndonesia’sachievementintheSouth-EastAsiaregion—thePhilippine(13.7%),Malaysia(13.8%),Singapura(14.3%),Cambodia(15.3%),andThailand(15.7%).

Figure89.GDP,TaxrevenueandTaxRatioSource:MinistryofFinance

Figure90.ComparisonofTaxRatiosamongNeighboringCountries.Source:MinistryofFinance

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Thissituationisclearlymirroredinthecountrytaxbuoyancy—ameasurementoftaxefficiencyandresponsetoGDPgrowth.Differentfromthesituationin2012wherethetaxbuoyancywasabout1.22,in2013thetaxbuoyancyreachedatonly0.89.ThismeansthatonepercentGDPgrowth thatpreviouslywasable to liftup tax revenueof1.22%decreasedto0.89%.Inthreeyearsafter,theindicatordidnotshowanyprogress.Even,in2014,thetaxbuoyancydroppedto0.63.Later,intwoconsecutiveyearsof2016and2017,thetaxbuoyancydecreasedevendeeperto0.48.

Several factors explain the situation. From the external side, pressures tocommoditypriceshave affectednegatively the sizeof tax revenue. Sourcesofnon-taxrevenuecannotbemobilizedyetknowingthatthecrudeoilpriceisalsounderpressure.From the internal side, albeit tax administration and management have significantlyimproved, taxcomplianceandtaxcoveragearestillseriouschallengesthatneedmoreeffortstoimprove.

2. Non-OilandGasExport

WhilemoreeffortsareneededtoimprovetheratiooftaxtoGDP,similareffortsarealso required to increase the performance of non-oil and gas export. This is becauseduring2012-2015theexportgrowthdidnotperformwellasindicatedbythenegativeratesof2-10%(Figure91).Theserateswerefarbelowtheonesachievedin2010withthe growth rate of 33.1%and in 2011with 24.9%.The combination of relatively lowproductivityandlimitedefficiencyintheinternalsideandcommoditypricepressuresintheexternalsideexplainthepoorexportperformanceintheperiod.

Nevertheless, initialsignsofrecoveryappear intheexportperformance.Albeit itdoesnotreturnthesituationbacktotheonein2010-2011,thepositivegrowthratesofnon-oil and gas export have been performed in the last three years. A special note,however,isneededhere.Thepositivegrowthratesarestillerratic,namely0.2%(2016),15.9% (2017), and6.4% (2018).This indicates that external uncertaintydoesnot yetdissolve; even, it is not impossible if it would continue in the coming years. Externalstrategies are certainly required through, for example, market diversification andexpansion.Variationinexportproductofnon-oilandgasis importanttobeexpanded,whilenewmarketsneedtoalsobeexplored.Therefore,asoundpolicyagendaforexportimprovement—evenfortheoverallinternationaltrade—isundoubtedlyneeded.

Inorder todevelopexportmarkets in tradingpartnercountries, Indonesia takesthree important measures. First, ratifying international trade agreements; second,conductingtrademissions;third,organizing‘TradeExpoIndonesia’(TEI).RatificationisaformofbindingstatementofIndonesiatointernationalagreement.TrademissionisanefforttomeetinternationalpotentialbuyersandIndonesiaexporters.Meanwhile,TEIisanannualexhibitionandbusinessmeetingamongvariousindustriesandcountriesheldinIndonesia.

During 2017-2018 Indonesia had been active in various negotiations ofinternationaltradeagreementsandinratificationsoftheagreements.SeveninternationaltradeagreementsthatIndonesiatookactiveactionsare(1)FirstProtocoltoAmendtheASEAN-Australia-NewZealandFTA(AANZ-FTA)Agreement,(2)AgreementonTradeinService under the ASEAN-India FTA (AITISA-FTA), (3) Third Protocol to Amend theAgreementonTradeinGoodsunderASEAN-KoreaFTA(AK-FTA),(4)ProtocoltoAmend

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theFrameworkAgreementunderASEAN-ChinaFTA (AC-FTA), (5)Protocol toAmendIndonesia-PakistanPTA(IP-PTA),(6)ProtocoltoImplementthe9thASEANFrameworkAgreementonServices(AFAS-9),and(7)ASEANAgreementonMedicalDeviceDirective(AMDD).

These agreements were followed by two others, namely Indonesia-ChileComprehensive Economic PartnershipAgreement (CEPA) danASEAN-HongKong FTAand InvestmentAgreement.Meanwhile, Indonesia had also signed four regional tradeagreements,namely(1)the10thASEANFrameworkAgreementonServices(AFAS-10),(2)FirstProtocoltoAmendtheASEANTradeinGoodsAgreement(ATIGA),(3)ASEANAgreementonElectronicCommerce,and(4)Indonesia-EuropeanFreeTradeAssociationEconomicComprehensiveAgreement(EFTA-CEPA).

In the sameperiod, Indonesiahadalso conducted trademissions to sixdifferentpartnercountries(2017)and13partnerdifferentcountries(2018).Mostofthecountriesarenon-traditionalIndonesianexportmarkets;thosesituatedinAfrica,MiddleEast,andLatinAmerica.Thesetrademissionshadnotbeenonlyconductedthroughofficialmeetingamong the trade authorities, but also through various business fora and businessmatchings.Forthesepurposes,theIndonesiadelegationtothetrademissionsincludedalsovariousdomesticbusinessactorsfromanumberofindustrialassociations.

Inthemeantime,similaractivitiesarealsodomesticallyheldthroughTEI,regularlydoneinOctober.Theyearsof2017and2018wereconsecutivelythe22ndand23rdTEIevents since its debut in 1985. In those events a series of MOUwith various buyingmissionpartnershadbeensignedtoaccompanytheparallelbusinessforaandbusinessmatching.Moreover, anew interesting stephadalsobeenmadeby conductingexportstart-upcompetition

Itmustberecognized,however,thattheimplementationofnationaldevelopmentagenda and SDGsneeds a big size of fund.Until now tax is still a dominant source ofdevelopment financing. Various efforts have been done to optimize the governmentrevenue.Taxmobilizationhadbeenenactedthrough,amongothers,taxamnestyin2016-2017referringtoLawNo.11Year2016onTaxAmnestyanditstechnicalelaborationinRegulationoftheMinistryofFinance118/PMK.03/2016ontheImplementationofLawNo. 11 Year 2016. The tax amnesty had succeeded to contribute to the governmentrevenueataboutRp135trillion(aboutUS$9billion),mobilizingaroundonemilliontaxpayers—while the contribution of the related program, i.e., repatriation fund, to theoveralleconomyisRp147trillion(aroundUS$10billion).

The revenue mobilization policy is further added by Enactment of GovernmentRegulationinLieuofLaw(‘PeraturanPemerintahPenggantiUndang-Undang’,Perppu)No. 1 Year 2017 on Access to Financial Information for Tax Purposes. The ‘Perppu’overseesaccesstoreceiveandtoobtainfinancialinformationintheimplementationofnational and international tax regulations. Through this regulation the GeneralDirectorateofTaxAffairisauthorizedtoaccessthefinancialinformationoftaxpayers.Theregulationstipulatestheprocedureofreportingfinancialinformation,procedureoffinancial account identification, requirement for document submission, sanctions forfinancialinstitutionsdisobeyingthelaw,informationconfidentiality,andpenaltyfortheauthoritiesdisobeyingthesecrecy.

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These regulations demonstrate the commitment of Indonesia to implement theprinciples of banking data openness for international tax affairs, namely ‘AutomaticExchangeofInformation’(AEoI).Thiswasthecontinuationofthepriorcommitmenttoexchangedataagreedin‘GlobalForumonTransparencyandExchangeofInformationforTaxPurposes2015’.Furtherfollowedbyanotheractionin2017,afteralmost20yearsplayingaroleasanobserver, Indonesiabecamethememberof ‘FinancialActionTaskForce(FATF)onMoneyLaundering’.Throughthismembership,theactiveparticipationofIndonesiaisexpectedtosuppressthedomestic-internationalflowsofillicitmoneyviavarious cooperation international mechanism—convention ratification, informationexchange,costumerduediligence,financialintelligence,etc.

3. Tariff

Anotherimportantinternationaltradepolicythatalsoneedsanattentionistariffdetermination.Tariffcouldcontributetothegovernmentrevenueandprotectthecountrydomestic industry.Tariffalsoaddresses tradedistortiondue to, forexample,dumpingstrategy—commonly known as ‘punitive tariff’. Nevertheless, tariff could play as thebarrier for international trade flows. Therefore, a consistent evaluation on tariff isimportanttodo.

Inthelasttwoyears,theweightedmeanoftariffratesinsixpartnercountriesofFreeTradeAgreement(FTA)members—Australia,China,India,Japan,NewZealand,andSouthKorea—haddeclinedsignificantlyfrom6.1(2017)to4.4(2018).Thisachievementisevenmorethanimpressiveknowingthatin2015and2016theweightedmeansoftariffrateswerestillrespectively9.3and7.9(Figure92).Atthesametime,exceptin2015,thedecliningtrendhadalsogonehigherthanthetargetsoftheMinistryofTrade,i.e.,9.05(2015),8.47(2016),7.92(2017),dan7.33(2018).Fortheindustriesandexporters,thistrendisanopenopportunityfortradecooperationwiththeaforementionedsixtradingpartnercountries.

Tariffhasbecomeoneofimportantissuesininternationaltradeduetoitsrolesininternational price formation and its transmission into domestic market. Tariffnegotiation isgenerallyapartof theoverall international tradenegotiation.However,tariffdetermination isnotmerelyabout tradeof finalgoods.This isbecausetherearevariousinterconnectedindustrialproductsthatplayasintermediategoodsbetweentherawmaterials and final goods. In this context, a complete observation prior to tariffdetermination is needed and the tariff to the goods with such characteristics can beproportionallycharged.AnillustrationcanbegiveninimportofyarnfromIndiatoChinaandfabricsfromChinatoIndonesia.Tariffdeterminationtosuchgoodsneedsanopenandcompleteobservationtoavoidthetradingpartnerstochargeunnecessarytariff.

Between 2017 and 2018 the regional trade negotiations were conducted underRegionalComprehensiveEconomicPartnership(RCEP)danFTA.Albeittherewerenoteasy at all, serial negotiations were kept maintain to comprehend the position andconditionofeachtradedelegationofRCEP-FTA.Inthenegotiationprocesses,anumberofissueshavebeendocumented,includingtariffitems,tariffrates,underlyingfacilities,reduction of barriers, and schedule of implementation. Indonesia-Australia CEPA, forexample,hasrecordedsomesignificantprogresses,eventhetwocountrieshassteppedforwardtothedetailnegotiationlevelontariffrates.

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Figure91.Non-OilandGasExportGrowthSource:MinistryofTrade

Figure92.TheWeightedMeanofTariffRatesinSixPartnerCountriesofFTA

MembersSource:MinistryofTrade

Nevertheless,inotherdevelopment,somenegotiationsarenotcompletelysettled.Onthe2018ASEANHighLevelConference,forinstance,althoughalltradeministriesofRCEP countries—namely10ministers of economic affairs ofASEAN countries and sixministersofeconomicaffairsofFTAcountries(Australia,China,India,Japan,Korea,andNewZealand)—attendedthesession, the flexibilityof thosecountrieswerenoteasilyseen.Thisagainshowsthattradenegotiationisnotaneasytaskasmanyaspectsneedstobeseriouslyconsidered.

4. Remittances

Apartfromexportsofgoodthatgenerateforeignreserves,theIndonesianmigrantworkers could also generate such reserves due to their transferred remittances.Remittancescanbedescribedasfinancialtransferbythemigrantworkers—drawnfromtheirearnings—totherecipientfamiliesinthecountry.Fromthisperspective,transferredremittancescanalsobeseenfromtheperspectiveofresourcemobilization.

Nevertheless, relative to GDP, the size of remittance flows of Indonesiamigrantworkers between 2010 and 2018 did not progressivelymove forward—fluctuating ataround0.8%to1.1%.Therelativeremittanceflowsachievedthehighestlevelin2015,whilethelowestonewasin2017(Figure93).SeveraldeploymentmoratoriumsandbanpoliciesofoverseasIndonesianworkerstosomecountriessince2011moreorlesshadaffected the size of remittance flows. In the years of 2015 and 2018, for instance,moratoriumpolicieshadbeenappliedtoanumberofMiddleEastcountries.

Insuchasituation,anincreaseinremittanceflowscouldonlybemadeiftherewerean improvement in the productivity of Indonesian migrant working in the receivingcountries.Thisimpliesthatthedeploymentofworkerswouldneedtobeselectedtoonlyparticularsectorsthatwouldprovidehighratesofwage.Forthisreason,anincreaseinworkers’ competitivenesswould result inbetter ratesof financial return that, in turn,wouldincreasethesizeofremittanceflowstothecountry.However,aspecialnotethatneedstobegivenhereisthatremittanceflowsareonlyoneofseveralissuesofmigrant

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workersthatalsoneedattentiontoensurethatnooneisbehindfromtheprotectionoftheirrightsandsafety.

A number of efforts have been done to deal with the issue. The Ministry ofManpowerdevelopsaprogramcalled‘ProgramforProductiveRuralMigrants’(‘ProgramDesaMigranProduktif’,Desmigratif),supportedbythecentralbank,BankIndonesia(BI),knowingtheimportantcontributionoftheworkerstothecountry’sinternationalreserveposition. One of the business models developed by the program is money transfermechanismsusingmobilephonetomobilephone,hosttohost,andagenttoagentthroughcashdepositmachinesandpostofficetopostofficesystems.Astheauthorityofpaymentsystem,theBIsupportssuchabusinessmodeltomakethetransferofremittanceefficient,effective,affordable,andeasy toaccess.This includesalsosupports toreducecostsofcashing-outduetolackofformalcash-outoutletsaffordabletothereceivingfamiliesinthecountry.Furthermore,todevelopmorecash-inoutlets,theBIcooperateswithotherpayment system authorities abroad and builds bilateral corridors of remittance flowsbetweenIndonesiaandthecorrespondingcountries.

Tosupporttheimplementationofsuchbusinessmodel,theBIcoordinatesalsotothe Financial Services Authority (‘Otoritas Jasa Keuangan’, OJK) to make the bankingadministrationprocesseseasierfortheworkers.Thisisimportantfromtheperspectiveoffinancialinclusionandfinancialliteracy,aswellastheformationofnon-cashecosystemintheoverallfamiliesofmigrantworkers.Moreover,takingaformoffinancialtransfer,theremittanceopenstheparticipationoftheworkersandthewholefamiliesinformalfinancialservicesandinstitutions.Forthispurpose,theworkersandthewholefamiliesneed to have bank or electronic accounts. The BI supports such ecosystem throughdevelopmentofDigitalFinancialService(‘LayananKeuanganDigital’,LKD).

Figure93.TheRatioRemittance

Source:BankofIndonesia

5. DebtServices

Asexportandremittanceflowsplayimportantrolesinformationofinternationalreserves,foreigndebtalsohassimilarcharacteristics.Thedifferenceisthattheresultsofexport and remittance flows would stay in the country, while foreign debt would bereturnedbackasdebtservices—theprincipalandinterest.Specifically,theforeigndebt

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discussedhereisthecentralgovernmentforeigndebt.Theabilitytoutilizeandtoservetheforeigndebtisalwaystheissuethatreceiveawiderangeofpublicattention.

Theabilitytomanagethedebtreflectsthecapacityofcountrytocontrolitsexternalresilience fromvariouspressures.This is seen in ameasure called ‘debt service ratio’(DSR)—the ratio of principal and interest payment to export. The higher capacity tocontrolthedebtismirroredinthelowerratioofDSR.Figure94showsthattheabilityofthecountrytomanageforeigndebtbetween2011and2016.Startedfromtheratioof12.5(2011),theDSRincreasedcontinuouslytothetopofgraphattheratioof35.4(2016).However,afterthat,inthenextthreeyears,arecoveryoccurred.In2018,theDSRtouchedthe ratio that ever been reached in 2014 at about 24. This fact shows that, albeit thenominal size of foreign debt increases, the debt is still managed in productive ways.Expresseddifferently,theforeigndebtisstillunderthespanofcontroloftheGovernmentofIndonesia.

Figure94.DebtServiceRatio

Source:BankofIndonesia

Managementoftheforeigndebtrelatescloselytomanagementofthestatebudget(‘AnggarandanPendapatanBelanjaNegara’,APBN)deficit,wherethetwohavestronginfluencesontheIndonesianeconomy.Fromthisperspective,LawNo.17Year2003onStateBudgethaslimitedtheAPBNdeficituptothreepercentofthecountryGDP.Thisdeficitisanaggregationofthedeficitsofthecentralandsub-nationalgovernments.Inthemeantime,thesamelawalsostipulatesthatthemaximumratioofdebttoGDPis60%;andtherationowisfarbelowfromtheallowablerate—29%(2017)and30%(2018).

Until now theMinistryof Finance is able tomanage the existingdebt andAPBNdeficit.Albeitbothdeficitanddebttendtorise,theydonotpassoverthedemarcationlinesasinstructedbythelaw.Tokeepmaintainthisconduciveenvironment,forthesub-nationalgovernments,theMinisterofFinanceregularlyissuesregulationtocontrolthelocalgovernmentbudget(‘AnggarandanPendapatanBelanjaDaerah’,APBD)deficits.Forthefiscalyearof2018,forinstance,theministerissuedtheMinisterofFinanceRegulationPMK117/PMK.07/2017ontheMaximumLimitsofAPBDDeficitandAccumulativeDebtforFiscalYearof2018.Forthepreviousfiscalyear,asimilarregulationwasalsoissuedthrough132/PMK.07/2016tocontinuethetraditionofprudentfiscalmanagement.

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InformationTechnologyandCommunication

Along with the continuation of financial resource mobilization, Indonesia iscommittedtodevelopagiantnetworkofconnectivityamongthewholepointsacrossthecountry.Apartfromthedevelopmentthroughphysicaltransportationinfrastructure,theconnectivityisalsodevelopedthroughphysicalcommunicationinfrastructure.Thelaterfinds its justification because today is the era of ‘Industry 4.0’ that demands for theexistenceofreliableinformationandcommunicationnetworks.Atthesametime,SDGsalso emphasizes the importanceof ITCas the facility andmedia for achieving targets,sharing the corresponding knowledge, and increasing cooperation among thestakeholders.

Some of important indicators for distribution and utilization of ITC have beendocumented.Theyare(a)nationalopticfibernetwork,(b)broadbandpenetration,and(c)internetusers.Indicators(a)and(b)describethestatusofphysicalcommunicationinfrastructure,whileindicators(c)reflecthowfartheinfrastructureisaccessibletothepeople.Overall,thecountryhasshownsignificantprogressesfromtimetotimeintheseindicators.

1. NationalOpticFiberBackbone

TheNationalOpticFiberBackbone(NOFB)isaphysicalinfrastructureconstructedto support the country’s communication system under a project called ‘Palapa Ring’;targeting about 36,000 kilometer-length optic fiber planted across the country. TheMinistryofCommunicationandInformaticshaddecidedtodistributetheprojecttosevensmallcirclesofopticfiberthroughoutSumatera,Java,Kalimantan,NusaTenggara,Papua,Sulawesi,andMaluku;andonebackhaultoconnectthosecircles.

In general, the construction of NOFB keeps moving toward the target. This isindicatedbyaconsistentincreaseintheindicatorin2015-2018—even,theincreaseisconsideredfast.Intheyearof2015thenetworkconstructionwasstill77.8%.Fouryearslateritapproachedto93%.Thisisanimpressiveachievementsincethecommunicationconnectivityhadtocoveranextremelywideareaofthecountry.Onthebasisofthistrend,in2019thenetworkisexpectedtoreach100%ofthetarget.

2. BroadbandPenetration

Broadbandnetworkmakestheinternetcontinuouslyconnectedandaccessedwithtriple-playcapacityof2Mbpsspeedforfixedaccessand1Mbpsformobileaccess.Thiscapacityopensnewsocio-economicopportunitiesandinformationexchangeforcatalyticandexpansionprocessesofdevelopmentunderthebetterratesofspeed.

Ingeneral,thepenetrationofaccessoffixedbroadbandisstilllimited.However,astimegoes,theincreasingtrendcanbeseen.In2014thepenetrationratewasstill1.33%.Three years later, it could be doubled to 2.41% (2017). Certainly, these levels ofachievementneedtobefurtherboosted.Astheserviceeconomyinthecountrymovesforward,includinginruralareas,thedemandforbroadbandaccesswillbeunavoidable.

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Figure95.PercentageofNationalOpticFiber

BackboneFigure96.BroadbandAccessPenetration

Source:MinistryofCommunicationandInformatics

3. InternetUsers

Theconstructionofcommunicationinfrastructuredirectlycorrelatestothelevelofitsutilization.Thisisclearlyshowninthejumpofinternetusers.In2010itwasjust17.6%ofpopulationaccessinginternetforvariouspurposes.Inthenextfouryears(2014),thepercent of population using internet had doubled to 35%. This figure even again hadquadrupledinthelastyearcomparedwiththeonein2010.Todayalmosttwo-thirdofthepopulation areno longer isolated from internetworlds.Therefore, it is not surprisingwhentheInternetWorldStats(2019)placesIndonesiaatthetop-5biggestinternetuserovertheglobeafterChina,India,theUSA,andBrazil.

Itcanbeensuredthatthistrendwillstrengtheninthecomingyears.Asdiscussedpreviously,fromthesupplyside,thesupportofcommunicationphysicalinfrastructurewillpushthesituationtooccur.Meanwhile,fromthedemandside,internetwillnotbelongeronlyasatoolforcommunication,butevenwillbeanewlife-styleandtraditionofthepeople.

Figure97.ProportionofIndividualsusingtheInternet

Source:IndonesianInternetServiceProviderAssociation(AsosiasiPenyediaJasaInternetIndonesia/APJII)

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Asmentioned,alltheITCachievementcannotbeseparatedfromthe“PalapaRing’project.Theprojectservesthreewings—thewest,center,andeastwings.Thewestandcenter wings have achieved their targets of 100%, while the east wing is still 89%.Through ‘PalapaRing’ the speedof internet is boosted significantly and the spreadofinternetsignalismoreevenlydistributedtootherareas.Withthisstatusofprogress,the‘PalapaRing’hasopenedpossibilities for thegovernment todevelope-government,e-budgeting, e-planning, and e-procurement. The ‘Palapa Ring’ also strengthensPresidential Instruction (‘Instruksi Presiden’, Inpres) No. 9 Year 2015 on PublicCommunicationManagementwheretheMinistryofCommunicationandInformatics istaskedwithaspecialmandatetocoordinateallpolicydisseminationsofthegovernment.Atthesametime,PRNo.96Year2014onNationalBroadbandPlan2014-2019hadbeenelaborated further into a joined circular letter of theMinistry of Communication andInformaticsandtheMinistryofHomeAffairsonJoinedDevelopmentandUtilizationofPassive Telecommunication Infrastructure. Released in the late December 2018, thecircular letter instructs the sub-national governments to accelerate all efforts ofnarrowingthedistributiongapinbroadbandnetwork.Accordingtotheletter,thepassiveinfrastructureincludesducting,pole,microcell,communicationtower,andtunnel.

In line with the progress above, the Telecommunication and InformationAccessibilityAgency(‘BadanAksesibilitasTelekomunikasidanInformasi’,BAKTI)throughRegulationoftheMinisterofCommunicationandInformaticsNo.3Year2018istaskedwithaspecialtargettoexpandtelecommunicationandinformationaccesstosupportthe‘PalapaRing’.Asapartofuniversalserviceobligation(USO),theagencyexpandsaccessto internet, BTS services, and financial inclusion. On the basis of the RPJMN on‘Developmentfromtheperiphery’,BAKTIisalsotaskedwithamandatetogrownationalconnectivitythroughconstructionoftelecommunicationaccesstothetipsofthecountry.In the meantime, since 2017 the Ministry of Communication and Informatics alsodevelopeddirectpolicycommunicationtothepublicthroughspecialofficersof ‘PublicInformation Communicator’ (‘Penyuluh Informasi Publik’, PIP) as a part of theimplementationgovernmentpublicrelations.

The ITC utilization by the people and the government opens bigger channels ofcommunication anddevelopment coordination. Public access to ITChas increased theparticipationindevelopmentprocess,fromplanning,implementation,tomonitoringandevaluation of development and SDGs. From the perspective of commercial businessdevelopment, ITC increases business productivity, product diversification, marketcompetitiveness,andexpansionofmarketaccess.

DataandStatistics

Information technology has opened a wider possibility for data communication.Datacannotonlybegenerated,transferred,andpresentedfasterinvelocityandbiggerinvolume,butalsowiderinvariation;even,moreaccurateinveracity;therefore,datanowismuchmorevaluable(‘5Vs’).This,however,doesnotapplyonly to theso-called ‘bigdata’context,butalsotothecontextof‘conventionaldata’wherechangestowardthe‘5Vs’areoccurringandgoingtocontinue.InIndonesiatheStatisticsIndonesiaOffice(‘BadanPusatStatistik’,BPS) ismovingtowardthedirection,makingthedataproducedbytheofficeisnowmuchmorereliableforplanning,monitoring,andevaluationpurposes,aswellasfordevelopmentpolicyformulationanddecision.

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1. DataUsers

Inthelastthreeyearssince2016thenumberofusersutilizingdatafordevelopmentplanninghasincreasedsignificantly.Eventhoughitwasnotliketheratein2015(63.5%),datauserhadincreasedmorethantwotimessince2016,from20.5%to50.4%(Figure98). This follows the increase in number of users accessingdata through the internet(Figure 99). In the year of 2018, about 2.3 million users accessed to the StatisticsIndonesiadatathroughtheinternettoexplorevariousdataavailableinthewebsite.Thisnumberisanadditionalamountofalmost800thousandusersfromtheoneintheyear2016at about1.5million.Betterquality of physical infrastructureof information andcommunication can explain this progress. At the same time, better quality of datamanagementandservicesbytheStatisticsIndonesia,especiallythewebsite-baseddata,alsoexplainstheprogressofdatautilization.

Figure98.ConsumersWhoUseStatisticsIndonesiaDatainNationalDevelopment

PlanningandEvaluationSource:StatisticsIndonesia

Figure99.NumberofExternalVisitorswhoAccessStatisticalDataandInformation

through'Website'Source:StatisticsIndonesia

ImprovementindatamanagementandservicesbytheStatisticsIndonesiahavealsocoloredthedatausersatisfactionofdatausers.Ingeneral,thedatausercommunityfeelssatisfied to the quality of data provided by the Statistics Indonesia, even with anincreasing tendency (Figure 100). In the year of 2016, about 89.3% satisfied to theservices.Ayearlater,theusersatisfactionincreasedto96.61%.Theprogressdoesnotstophereasin2018thefigureclimbedtothelevelof97.74%.

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Figure100.PercentageofStatisticsIndonesia’sConsumerSatisfactionRateofStatisticalData

QualitySource:StatisticsIndonesia

2. DataProduction

TheITCdevelopmenthasalsomadepossible fordata tobeproducedbysourcesotherthanStatisticsIndonesiawithspecificpurposesandvariations.Figure101explainsthiswell.Inthelastthreeyears,therehasbeenadecliningtrendinthenumberofusertakingStatisticsIndonesiadataasthemaindatareference,from91.4%(2016),to87.1%(2017),and86.9%(2018).

Figure101.PercentageofConsumersUsingStatisticsDataandInformationofStatisticsIndonesia

asMainReferenceSource:StatisticsIndonesia

Oneofthedatasourcesregularlyproducingdata,andreferredbytheusers,istheline ministries. This relates to the improvement in the data management of the lineministries,donethroughdeploymentofspecialofficersandstaffresponsibleforit.Forthe lineministries, datamanagement—production andpublication—is not only aboutpubliccommunicationandaccountability,butalsoaboutopenmonitoringandevaluationoftheperformanceofthedevelopmentsectorsundertheircontrolandresponsibility.

Figure102describesthesituationclearly.Todayitisnotlessthan5600statisticiansworkingforthelineministriesondatamanagement.Thisamountisanincreaseatabout

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2000officersfromtheonein2015with3700officers.Thisdevelopmentisinlinewiththeincreaseinnumberoflineministriesemployingstatisticiansfordataproductionandpublication (Figure 103) certainly improved the supporting organization andinfrastructure. In theyearof2017, itwasonly59%of the total lineministrieshavingprofessionalstatisticians.Ayearafter,itincreasedto67%.

Figure102.NumberofStatisticsandComputer

AdministratorinLineMinistriesSource:StatisticsIndonesia

Figure103.PercentageofLineMinisterhavingStatisticsandComputerAdministrators


3. PopulationCensusandSDGsData

Supportedbybettercapacityofdatamanagement,theStatisticsIndonesianowismorecapableinprovidingvarioustypesofdata.Twomostrecentandimportanteventsare the 2020 Population Census and SDGs data preparation. The census is a regularactivityoftheStatisticsIndonesiaconductedevery10years,whiletheSDGsdatawillbeproduceduntil2030.

Thecountry’spopulationcensushasbeendonesixtimessince1961,whilethelatestcensus was done in 2010. Learning from the experience in the 2010 Census, somebreakthroughs have been created. For example, now some efforts have been done tosynchronizethecensusdataoftheStatisticsIndonesiawithpopulationandcivildataoftheMinistryofHomeAffairs,suchthatbudgetefficiencycanbereached.Theseeffortsareimportanttoreceiveattentionbecausethe2020Censusisestimatedtocoveroverthanaquarterbillionofpopulationlivingacross1905km2ofthecountry’sarea.

Another issueofdataproduction isSDGsdata.TheUN-DESA inMarch2016hadreleased 241 SDGs indicators to translate the 17 goals and 169 targets. Meanwhile,through a series of intensive consultations andwideparticipation, Indonesia had alsopreparedSDGsindicatorsthatevenbiggerinthenumber:320indicators.Categorically,theindicatorsaredividedintothreetypes.First,indicatorsmarkedbyastar(‘*’),meaningthatthenationalindicatorsarepreciselythesameastheglobalones.Second,indicatorsmarkedbyadditionalletter(‘a’, ‘b’,…),representingthenationalproxiesfortheglobalindicators.Third,missingindicatorsduetomissingdefinitionsthatwillbedevelopedinthefuture.

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Those-mentioned indicators are documented in the Metadata Indikator TPBIndonesia(2017),dividedintofourgroupsofpillar.First,thePillarforSocialDevelopmentcoveringGoals1,2,3,4,and5.Second,thePillarforEconomicDevelopmentaddressingGoals7,8,9,10,dan17.Third,thePillarforEnvironmentDevelopmentcapturingGoals6,11,12,13,14,dan15.Lastly,thePillarforLawandGovernanceDevelopmentcapturingGoal16.TheMetadatahasbeenpublishedinprintedandelectronicversionsandopenlyaccessibleforthepublic(http://sdgs.bappenas.go.id/dokumen).

Moreover, the Statistics Indonesia also disaggregated further the indicators bygender, age group, disability community, etc. About 48% indicators can be presentedusingthisdisaggregation,whiletherestof52%isnotprovidedindisaggregatedform.Atthesametime,knowingthattheSDGsarealsotheagendaofsub-nationalgovernments,thedataarealsodisaggregatedbyprovinceaswellasdistrictandcity.

The Statistics Indonesia has also put valuable foundation for the country’s SDGsindicators. In 2018, the Statistics Indonesia published Indikator Tujuan PembangunanBerkelanjutan Indonesia (literally, ‘Indonesia’sSDGsIndicators’)which isverymuch inlinewithMetadataIndikatorTPBIndonesiamentionedabove.AstheMetadataprovidesmethodological procedure of SDGs indicatorsmeasurement, the Indikator of StatisticsIndonesiaprovidesthelateststatusoftheSDGsachievement—mostly2015-2017data,butsomereferbackto2012.Thisefforthasitsrootinasimilarreportpublishedin2016,titled Potret Awal Tujuan Pembangunan Berkelanjutan di Indonesia (literally, ‘InitialPortrayofSDGsinIndonesia’).Thesenational-levelinitiativeswerethecontinuationtothe one that had been done in 2015 through Kajian Indikator Lintas-sektor: KajianIndikatorSustainableDevelopmentGoals (literally, ‘AnalysisofCross-Sector Indicators:AnalysisofSDGs Indicators’).Thisreportwas the firstanalysisdone in thecountry toidentifyavailabilityofdataandsourcesofdataforSDGsIndonesia.

Attheprovinciallevel,thedatafor14of17goals—or41of169targets—arealreadyavailable.Forthepurposestosupportthesub-nationalSDGsactionplans(‘RencanaAksiDaerah’,RAD),theStatisticsIndonesiaplaysitsfiveroles.First,tosupplydataforSDGsindicatorsproducedbytheStatisticsIndonesiainternallyorcompiledfromothersourcesexternally.Second,toprovideinputsforformulationofproxiesfortheindicators,alsoonthe data produced by the Statistics Indonesia internally and other sources externally.Third,toprovideinputsandjustificationsfortheSDGsdatadrawnfromothersources.Fourth,tovalidateandverifytheconsistenceofSDGsdataproducedbyotherinstitutions.Fifth,toclarifytheStatisticsIndonesiadatausedintheRAD.In2017,forexample,theStatistics Indonesiahadpublished a report titledAnalisisCapaian SDGsProvinsi Jambi(literally, ‘AnalysisofSDGsAchievementinJambiProvince’)tosupporttheprovinceinportrayingthe initialstatusofSDGs.This isan important initiativeat thesub-nationallevelthatcaninspireotherStatisticsIndonesiasubnationalofficesandothersub-nationalgovernments.In2018,asimilarsupportwasalsoprovidedtotheprovinceofCentralJava,where the Statistics Indonesia supported to develop the SDGs website(https://sdgsjateng.com),dataprovision,andtheRADfortheprovince.

South-SouthandTriangularCooperation

Using the overall experiences in resource mobilization, physical communicationinfrastructuredevelopment,aswellasdataandstatisticssystemdevelopment,Indonesiaaccumulateenoughassets for further interactionwithother countries in international

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developmentcooperation.South-SouthCooperation(‘KerjaSamaSelatan-Selatan’,KSS)andTriangularCooperation(‘KerjaSamaTriangular’,KST)areatwo-combinedimportantstepforIndonesiatobemoreactiveininternationaldevelopmentcooperations.TheKSSis a cooperation among developing countries, established to increase their ownsovereigntyonthebasisofsolidarity,mutualopportunity,andmutualbenefit.Meanwhile,theKSTisacooperationamongdevelopment-donorpartnerstoparticipateintheKSS.

From this context,South-SouthandTriangularCooperation (‘KerjaSamaSelatan-SelatandanTriangular’,KSST)isseenasacombinedstrategicdiplomacyofdevelopingcountrieswithoutneglectingtheessenceofsolidarityofthemembers.IndonesiahasbeencommittedtoincreasetherolesofKSSTinglobalcooperationasindicatedintheRPJMN2015-2019. This is in line with the implementation of Goal 17of SDGs, namelyrevitalization of global partnership for sustainable development. Through KSST,IndonesiaiscommittedtoassistotherdevelopingcountriesinimplementingSDGsandtoensurethatnooneisleftbehindinthepartnercountries.

Atthesametime,IndonesiahadalsojustreleasedGovernmentRegulation(GR)No.48Year2018onDevelopmentGrantstoForeignGovernmentsandForeignInstitutions.TheregulationprovidesalegalfoundationforIndonesiatobemoreactiveinsupportinginternational development through Indonesia’s development aid. This is an importantmilestoneforthecountrynowofficiallycategorizedasadonorcountryandas‘Southernprovider’ in KSST. The regulation needs further technical guidance in several arenas,namelygrantpolicyandgrantprocedureaswellasgrantmonitoringandevaluation.

Some achievements of KSST can be depicted as follows. During 2014-2018,Indonesiahadconductedseveralactivitieswithanincreasingtendency.Startedfrom26activitiesin2014,fouryearslaterthenumberofactivityjumpedmorethandoubleto59activities.ThisshowsthecommitmentofIndonesiatotheparticipatingKSSTcountries,namely Afghanistan, Bangladesh, Ethiopia, Fiji, Ghana, Nepal, Nigeria, Pakistan, PapuaNew Guinea, the Philippine, Solomon Island, and Timor Leste—including to some ofdevelopedcountries,namelytheGermany,Japan,UK,andUSA—toshareknowledgeandexperienceinimplementingvariousdevelopmentprograms.

Moreover,sixtypesofactivityhadalsobeenconductedinthelastfiveyears,namelytraining, workshop and seminar, expert dispatch, scholarship-internship, multi-eventactivities,andknowledgesharing.Trainingsandexpertdispatchesweretwoprogramswith the highest frequency of activities during 2014-2017. The trainings are done tosupportAsian,African,andSouthPacificofKSSTcountriesasmentionedabove.

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Figure104.NumberofKSSTActivities

Source:SSTCCoordinatingTeam

Table12.TypesofKSSTProgram

Acrivity 2014 2015 2016 2017

Training 63 51 49 59

Workshop-Seminar 7 12 23 14

ExpertDispatch 15 12 10 13

Scholarship-Internship 7 2 4 2

Multi-eventactivities 8 19 13 12

Knowledgesharing - 4 2 -


Empowerment of the partner countries is also done through theKSST, thatwasinitiallydonewithJapan,thenextendedtotheUS,UK,IslamicDevelopmentBank(IDB),andGermany.Throughthecooperationthedevelopingcountrieswereexpectedtodrawlessons from thedevelopedcountriesandadjust the lessons to theirowncontextandneeds.ThecooperationwiththeIDBwasmadetoexpandthesupportofIndonesiatotheIDBmembers,likeMoroccoandTunisia,viaaschemecalled‘ReverseLinkageProgram’.

TodayIndonesiaiscategorizedasamiddle-incomecountry.IndonesiaalsoplaysitsrolesinG20andshowsitssolemnityininternationaldevelopmentcooperationasseenin’JakartaCommitment2009’and‘BusanOutcomeDocument2011’.TheRPJMN2015-2019commitmenthasalsoindicatedaclearsignonforeigndiplomacythatneedstobedonebythe country.Theoverall commitment is in linewith the implementationofGoal17ofSDGs, especially on revitalization of the global partnership toward sustainabledevelopment.

ThecommitmentisrealizedthroughfinancingvariousKSSTactivities.Afteradropin2016,inthelastthreeyearstheKSSTfinancingroseconsistently.In2018thefinancingwasalmost the sameas theoneoccurred in2015.This againproves the solemnityofIndonesia and the global community to consistently develop the cooperation undermutualbenefitprinciples.

26

4551

59 59

2014 2015 2016 2017 2018

Activ

ities

Year

188

Figure105.KSSTFinancing(billionRupiah)

Source:SSTCCoordinatingTeam,MinistryofNationalDevelopmentPlanning

Box41.SSTC–SomeMilestones

ApartfromfinancingtheKSST,Indonesiahasalsoachievedthefollowingmilestones.First,policy intervention. This includes (a) Determination of flagship program and areas ofparticipationofthelineministriesinKSST;(b)MappingprioritycountriesforCooperation;(c) Development of innovative triangular cooperation modality; (d) Development ofannual,medium,andlongtermcommunicationstrategyofKSST;and(e)Developmentofstudy on formulation single agency of KSST, covering institutional and regulatoryframework,cooperationmodels,andfinancing.

Second,capacitydevelopment.Underthiscategory,therearesomemilestones,namely(a)Developmentofstandardoperatingprocedure(SOP)forthenationalcoordinationteamofKSST;(b)Developmentof‘Indonesia’sResourceCenter’toserveasacenterofexcellencefordevelopingcountriestoshareknowledgeandinformatif;(c)Formulationofaguidanceforevaluationof internationalcapacityDevelopment;(d)Assessmenton individualandinstitutionalcapacityofthenationalcoordinationteamofKSST;(e)Assessmentonbenefitof international development cooperation as a feedback for KSST program; and (d)Partnershipcapacitydevelopmentthroughmulti-partiespartnership.

Third,developmentofeminentpersons’group,involvinghighlevelgovernmentofficersandexpertsinformulationofchapterforeignaffairsofRPJMNandhistoryofKSST.Fourth,promotionofKSSTthroughvariousroadshowstouniversities,internationalfora(BAPA+4,GSSDExpo,Asia-AfricaForumCommemoration),exhibitions,andworkshops.

Lastly,fifth,developmentofincentivemechanismmodels.Thisincludes(a)DevelopmentofconceptsonprivatesectorparticipationinKSSTthroughfiscalandfinancialincentives;(b) Guidance for multi-party cooperation to increase participation of non-governmentactors

79.6

110.5

7483.3

105.6

2014 2015 2016 2017 2018

Billion

Rup

iah

Year

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B. ChallengesandResponsesResourceMobilization

1. TaxRevenueIncreasingtaxrevenueisnowthebiggestchallengetoface,evenuntilthecoming

future.Variouseffortshavebeenmadetocopewithit.Taxamnestyprogram,forexample,hadbeenseriouslyimplementedduetoLawNo.11Year2016.Openingtheopportunityonly forninemonths in2016–2017, theprogramwasdivided intotwoparallel tracks,namelydeclarationoffundandrepatriationofoffshoreassets.Astheprogramofferedtaxincentivesandimmunityfromprosecution,followedbyasmallpenalty,thegovernmenthadmade the tax amnesty attractive for tax evaders to declare their funds to the taxauthorityandtorepatriatethosefundsintothecountry.

Otherefforts toreducetaxevasionarestillneededandtheutilizationofdigital

technologymustbeapartoftheseefforts.Digitaltechnologybringsnewopportunitiestoreduce tax evasion in one side and to improve tax compliance in the other side.Technology-basedtaxmodernizationcontributestotheprocessofimplementationofacoretaxadministrationsystem.SupportedbyPRNo.40Year2018onRenewingCoreTaxSystem, the new core tax administration system is designed to replace the previoussystemthathasbeenappliedformorethanadecade.

Tax sources need also to be expanded. Until now the country is still relativelydependentonprimarycommodities.Othersectorsarepossibletobeexploredtoincreasetax revenues, especially manufacturing and service sectors. A harmonic combinationbetweenpenaltyandincentiveforthesesectorneedstobefound, followedbyadetailmeasureonthesesectors,especiallytheonesthatcontributetoexport,employment,andeconomicgrowth.Alloftheserequireanimprovementintaxadministrationandservices.

Improvementintaxadministrationandservices,however,cannotbeisolatedfromtheoverallstructureoftaxorganizationandthesupportinghumanresources.Thecurrentstructureofhumanresourcesintaxadministrationisrelativelysuboptimal.Thenumberoftaxemployeesinfunctionalpositions,forexample,isstillrelativelylowercomparedtothe total tax employees—causing an imbalance workload among the tax employees.Continuingthecurrentstructuralbureaucracyreformsisstillneeded,butitneedstobefollowedbybalancingthecompositionoftaxemployeesaswellasimprovingthequalityofhumanresourcesandbusinessprocesses.

Alongwiththe implementationoftheabove-mentionedoverallreforms, it isalsostrategictoconsiderapossibilitytoestablishanindependentrevenueauthority.Asthecountryfacesvariouschallengesintaxrevenueissues,theestablishmentofsuchagencyneeds to be directed toward the improvement in efficiency and effectiveness of taxcollection.

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Theglobaleconomytendstobestagnantandovershadowedbyanincreaseinthecurrent geo-political tensions. The prolonged unconducive political-economic relationbetween theUSAandChina is responsible for the tensions.At the same time, a serialeconomicimpacthavebeenfoundinanumberofcountriesinvariousregions.

Indonesiamightnotbefullyisolatedfromtheimpactsofthetensions.Thecountry,therefore, needs to escape from the tensions. Developing market diversification,especiallytowardsthosewithhighmarketvalues,maypartlyanswerthisissue.Theotherpartoftheanswermaylieinthecountrydomesticmarket,implyingtheneedsforfurtherdevelopmenttoboosttheinternalcapacityofthecountry.

Globalprotectionismandinward-lookingpoliciestendtowiden,creatingpressuresonIndonesia'snon-oilandgasexportperformance.Variousconcreteeffortshavebeenmadetoimprovetheperformanceofnon-oilandgasexports,includingsimplificationofexportadministrativeprocessestoreducecostsanddwellingtimeaswellastoincreaselogistical efficiency. However, this is not suffecient. Another improvement in exportproductqualityisunavoidabletodo,asitalsoincreasesproductmarketcompetitiveness.

3. Tarif

Ingeneral,thecollaborationbetweenIndonesiaandvariousFTApartnercountriesgoeswell.However,someissuesarestillunresolved,includingtheon-goingcompletionofthebilateral,multilateral,regionalandinternationaltradenegotiations.Amongothers,tariff negotiation is themostdifficult task to complete.As it has some impactson thecountry trade performance, Indonesia continues to workwith its efforts to stimulateenvironmentthatcaneliminatesuchabarrier.

Tarifreduction isstill thecurrentandthecomingagenda for thecountrytodealwith. Take-and-give strategywill be applied as a common standard approach in tariffdiplomacy.However,thisneedsacomprehensiveunderstandingonthetechnicaldetailofthenegotiatedgoods,especiallyontheinterrelatedchainstructureofthetradedgoods.Asthetradedgoodsareinterrelated,atariffdeterminedinoneproductwouldhaveanimpactonothergoodsinthechainstructure.

4. Remittances

EstablishmentofabankableremittanceecosystemisstillachallengeforIndonesiaas the country with large number of migrant workers. Not all remittance flows arechanneled through formal financial institutions, thus it is suspected that a quite bigamountofmoney isnotproperlyrecorded.Suchremittance flowsarebrought incashform;someothersaresentthroughpeople-to-peoplemechanism.Thisisalsocomplicatedby the limitednumberof cash-in and cash-outoutlets that can reachareaswhere themigrantlaborsworkandoriginatefrom.

Severaltechnicaleffortshavebeenmadetodealwiththeseissues.Amongothers,collaborationswith formal financial institutionsaremade toeducatemigrantworkers

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priortothedeparture.Othereducationprogramsincludeaserialtrainingoftrainer(ToT)sessions on financial literacy and technical trainings in ‘Vocational and EducationTrainingCenters’ (‘BalaiLatihanKerja’,BLK).Disseminationson financial literacyandproductiveutilizationofremittancearedonethroughvariouschannels,i.e.,communityorlocalorganizationleaders,socialmedia—targetednotonlytothemigrantworkers,butalsothefamiliesbenefitedfromtheremittance.

However,remittanceisnottheonlychallengeofmigrantworkerissues.Technicalcompetence and productivity of the migrant workers, administrative procedure ofdepartureandsupportingmigrationdocument,aswellasprotectionofrightsandsafetyaresomeotherissuetobemanagedproperly.

5. DebtService

Asthecountryissteppingforwardinitsdevelopmentpath,developmentfinancingis always a challenge for the country. Domestic resources certainly require to bemobilized,butexternalsourcesneedalsotobeoptimized.Acombinationofdomesticandforeigndebtsisandwillbeagreatchallengeinthecountrybudgetdeficitmanagement.

Different fromdomestic debt that does notmuch affect the country’s balance ofpayment,foreigndebtneedsprudentexternalmanagementasitlinkstothecapacityofthe country to generate export of goods and services. At the same time, productiveutilizationforeigndebtdoesnotonlybringthecountrytoahigher levelofcapacitytorepay the debt, but also open awider channel to generate the economy andpromoteexport.Asthedebtrepaymentcapacityiscrucial,exportexpansionisalsoimportantindebtservicemanagement.InformationTechnologyandCommunication

In the current and coming digital era, development of physical infrastructure isalwaysinagreatchallenge.Thischallengeiscoloredbytwosides.Inthedemandside,theneedforhighvolumeandvelocityofdatacommunicationisunavoidable.Meanwhile,inthesupplyside,theavailabilityoffixedandmobilebroadbandcommunicationnetworkiscriticaltobedeveloped.

‘PalapaRing’projecthasbeendesignedandconstructedtorespondthechallenges.The ambition is to covers all spots across the country, including the so-called ‘3T’-juriscditions.Achievementhasbeenmade.Thewestandcenterwingsofthecountryhavebeen100%connected through submarine cable andoptical fiber,while the eastwingsoonwillbefullyconnectedbytheendof2019.Thechallengenowishowtocapitalizeand transform the infrastructure into productive and innovative economic-socialactivities.Itisevenamoreseriouschallengewhenitisrealizedthecountry’sdemographyispopulatedbyabulkofyoungmillennialgroups.Inrelationtothis,safetyinternetneedsalsoaspecialattentiontopayinthedigitalera.

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DataandStatistics

The availability of data and statistics for the implementation of the SDGs isextremely fundamental. A large portion of the SDGs indicators has successfully beendefined, identified, and transformed into a meaningful dataset. However, datadisaggregationisstillachallenge,especiallywhenspecificgroups—disability,gender,andage-based—aretargetedbytheSDGstoensurethatnooneisleftbehindthedynamicsofdevelopment.Atthesametime,creationofnewadministrationsub-nationaljurisdiction,especiallyatthelowesthierarchyofgovernmentstructure,tendstocontinue,makingthedatamanagementmorecomplicated.

The needs for SDGs data, particularly the ones where the indicators cannot bedirectlysuppliedbythestatisticalagencyofBPS,arealsohigh.Suchdataareprovidedbythe lineministries; implyingtheneedsformoretechnicalassistanceondataprovisionand development. At the same time, SDGs data are important to be integrated andinternalizedintothedatamanagementofthelineministriestoensuretheconsistenceofdata availability; and, more importantly, to make SDGs as a part the line ministryperformance.South-SouthandTriangularCooperation

TheKSSTneedstodeliberatealsotrade-relatedissues,includingcustomandimportdutiesandtariff,alongwiththeimplementationofitsprograms.ThisimpliesthatKSSTprogramsneed tobe furtherelaborated intoadetailedandcomprehensivemanner tocopewiththetechnicalobstaclesintheimplementationoftheprogram.

TheKSSTprogramsneedalsotobeintegratedintotheprogramsoflineministries.ThisintegrationopensapossibilityforthelineministriestosupporttheKSSTprogramsthroughvariousunderlying resources. For this reason, theKSSTprogramneeds tobedirectednotonlytoachieveitstargeteddeliverablesandoutputs,butmoreimportantlytoresultintangiblebenefitsfortheparticipatingstakeholders.Planning,monitoring,andevaluationmanagedunderareliablemethodology,therefore,isthelogicalconsequenceimpliedinboththeKSSTandlineministriesprograms.C. LearningfromtheAchievementResourceMobilization

1. TaxRevenue

An efficient tax system is important for sustainable development and inclusivegrowth. One of the efforts undertaken to generate the efficiency of tax system is bymodernizingandutilizing technology. In termof taxrevenue, Indonesia is stillheavilydependentonprimarycommodity.Assuch, Indonesiashould improve taxrevenues inothersectors,especiallymanufacturingandservicesectors.

OneofthefactorscausingthelowrevenueishightaxavoidanceinIndonesia.TheMinistryofFinanceiscurrentlyreformingtaxadministrationandpoliciestoincreasetax

193

compliance. In fiscalpolicy, thegovernmentprovides incentives topioneer industries.Furthermore, the Government has also simplified the regulation on tax incentives bypromulgating Minister of Finance Regulation No. 35/PMK.010/2018. Lastly, theGovernmenthasalso lent itssupporttoMSMEbygiving incentivesthroughGRNo.23Year2018.

2. Remittance

FlowremittancetendstostagnatebecausemanyIndonesianmigrantworkersareworking in low-skilled jobs such as domestic helpers andmanual laborer. Therefore,Indonesia needs to encouragemoremigrant workers with added value so thatmorereceiving countries willing to give higher salaries to the workers and subsequentlyimprovingtheremittancetoIndonesia.

National Agency for Placement and Protection of Indonesian Migrant Workers(‘BadanNasionalPenempatandanPerlindunganTenagaKerjaIndonesia’/BNP2TKI)haslaunchedwww.jobsinfo.bnp2tki.go.idtodisseminatereliableinformationonoverseasjobvacanciestoallIndonesians.Indonesianssearchingforinformationontherequirementsandqualificationsofsuchvacanciesarethenabletorefertothewebsite.Utilizationofthewebsiteisalsoveryusefultoavoidextortions,fraud,orevenhumantrafficking.

3. Non-OilandGasExportandFreeTradeAgreements

Oneoftheprioritiesofnationaldevelopmentistoincreasenon-oilandgasexportto optimizenational revenue. Increases in global commoditypricesmight cause someimprovements in Indonesia’s export performance. However, Indonesia needs to findothercommoditieswithhighvalue-addedandstableinternationalmarketprices.

Indonesiaalsoneedstodiversifyitshighvalue-addedexportgoodsportfolio.Untilnow extractive commodities remain as the flagship of Indonesia export. This includesagricultural products such as crude palm oil which is vulnerable towards variousvariables.Inthepast(2012-2015),drasticweatherchangescausedharvestfailuresanderratic prices in international market, causing export growth rate of Indonesia to benegativeinthatperiod.

TradeliberalizationisinevitableforIndonesiaasamemberofglobalcommunity.ThroughtheframeworkofFTAandCEPA,Indonesiaactivelyparticipatesininternationaltrade cooperation (both bilateral and regional). Indonesia’s commitment to improvetrade volume with FTA partners is evidenced by the reduction of tariff for six FTApartnersinthepastfewyears.InformationandCommunicationTechnology

Acceleration of infrastructure development in information and communicationtechnology(ICT)istargetedtosupportdevelopmentandeconomicgrowthinIndonesia.Indonesiacurrentlypossessesninesatellitesinoperation.Ownershipofthesesatelliteshas simplified the process of addition or reduction of bandwidth. It also makes theconnection to Very Small Aperture Terminal (VSAT) system easier that increases the

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penetrationof internetaccess.Widespread internetaccessencouragesdevelopmentofinternet-based government network system aswell as links national and subnationalgovernmentnetworks.InternetintroduceschangesandnewopportunitiesinthelifeofIndonesia communities. Development and operation of the satellite creates economicmultipliereffectintheentireIndonesia,oneofwhichthroughthegrowthofMSMEintheregions,especiallythoseine-commercesector.DataandStatistics

The success of the implementation of SDG in Indonesia is inseparable from theavailabilityofdata.TheBPS,astheinstitutionresponsibleformonitoringandevaluationofSDG,hascollecteddataandinformationonSDGindicatorsthroughroutinesurveysandcollaborationswithLineMinistries. Inorder toprovide reliabledata aligned to globalstandard,theBPScontinuestoconductimprovementprogramsonstatistics,especiallyinordertoprovidedataonincompleteSDGindicators.TheBPSalsolendsitssupportandtechnical assistance to the line ministries to gather relevant data for various SDGindicators.South-SouthTriangularCooperation

Improvementof IndonesiaKSSTprofile ispartof increasing roleof Indonesia ininternational fora. Evidently, Indonesia’s active contribution in SSTC signifies itscommitmentinrealizingtheaimsofSDG.Indonesia’scapacityinexecutingSSTChasbeenacknowledged,asevidencedbyincreasingrequestforassistance.Furthermore,IndonesiaSSTCiswidelyconsideredasuccessstorywhichcanbepromotedinvariousinternationalfora.

IndonesiahasachievedmajorachievementsinthefieldofSSTC.However,IndonesiashouldfurtherincreaseitsactiveparticipationintheSSTC,throughvariousactionssuchasmeasuring the impact of SSTC activities to recipient country; designing sustainableactivities for a certain period of time instead of single-off activity (programmaticapproach); selecting target of the cooperation by considering condition facilities,resources,andgovernmentsupport.SSTCproducesmultipliereffectssuchascooperationopportunities in economy, politic, social and culture, education, and other forms ofcooperation.D. TheWayForwardResourceMobilization

1. TaxRevenue

Toimprovetaxcollectionrate,thedirectionoffuturepoliciesincludesthefollowingsteps,i.e.,(a)todevelopcore-taxsystemtoimprovetaxserviceandtoovercomechallengesofdigitalera;(b)toencouragetheestablishmentofanindependentagency/authorityontaxrevenue in order to improve the efficiency and effectiveness of tax collection; (c) tocontinuestructuralreform,specificallyintheimprovementofqualityofhumanresource;

195

and(d)toimprovebusinessprocesses,taxadministration,andpublicservicerelatedtotaxation.


Indonesiashort-termpolicydirectionshallbeasfollows,namely(a)toovercometariffbarrierssuchasimportdutiesofIndonesianCPOinIndiaandPRC;(b)toensureIndonesiareceivesGSPstatusfromtheUSstarting2019;(c)torealizetheresultsfromtradecontractsin2018;(d)toopennewtrademissioninShanghai,Turkey,andVietnam;(e) to intensify trade promotion to non-traditional markets, and (f) to resolve tradebarriersrelatedtoTradeRemedies(dumping,subsidies,safeguard).

Meanwhileinlong-term,thepolicydirectionshallbeasfollows,i.e.,(a)todrawuparegulationonimplementationofIndonesia-ChileFTA;(b)toratifyIA-FTA;(c)tohastenthefinalstepsofnegotiationwithMozambique,Tunisia,Morocco,EuropeanUnion,andRECP; (d) to meet the growth target of Indonesia-US trade; (e) to increase tradepromotionthroughDubaiExpo2020;(f)toopennewtrademissioninPakistan;(g)tomove trade mission in India from Chennai to Mumbai, and (h) to open new exportdestinationsinAfrica,Eurasia,andSouthAmericaregions.

3. Remittances

Remittanceflowsneedtobefurtherdevelopedasapartoffinancialinclusionandfinancialliteracystrategies.Themigrantworkersandtheirfamiliesarepotentialclientsofbankandotherformalfinancialinstitutions.Alongwiththedevelopmentoffinancialtransaction technology, remittance flows can be expanded to reach much widergeographicareas.

However,remittanceflowsalsorelatetothequalityofmigrantworkers.Inordertoincrease the volume of remittance, one of the policies implemented in the future isconducting value-adding trainings to aspiring Indonesian migrant workers. With theincreaseoftheircompetency,oncetheyworkthelevelandvolumeoftheirremittancetoIndonesiawillincrease.Furthermore,recruitmentsystemofaspiringworkersshouldbeupgradedinordertoempowertheworkersintermsoflaw,administration,andskillpriortotheirdeparture.

4. DebtServicesJustlikethecurrentpractice,inthefuturedebtfinancingwillbemanagedcarefullytakingintoaccountvariousaspectssuchasglobaleconomyconditions,exchangevalueofrupiah,andpriorityofdevelopment.Furthermore,Indonesiawillcontinuetochaseitsrelativelagoninfrastructureandhumanresources.InvestmentinthosesectorswillgivepositiveimpactinthefutureespeciallyinensuringIndonesiabecomeindependentfrommassivedebtfinancing.Indonesiawillalsoencourageexportbystrengtheningcompetitivenessonvalue-addedgoodsandservicestoimproveexportcontributiontowardsaninclusiveandsustainable economic growth. Lastly, Indonesia encourages selective international

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economiccooperation,puttingitsnationalinterestfirst,inordertoencouragesustainableeconomicgrowth.InformationTechnologyandCommunication

Indonesia plans to expand non-cash social assistance service, education digitalcontent, public information digital content, health digital service and agricultureinformation.Besidesthat,utilizationofICTwillbebroadenedingrowthsectorsinordertoimproveefficiency,productivity,value-added,andcreationofdemands.DataandStatistics

Inthefieldofdataandstatistics,Indonesiaplanstoexecutethefollowingpolicies,namely (a) improving data availability and high-quality statistics information; (b)increasing coordination, integration, and synchronization between statistics-relatedactivitiesconductedbythegovernmentandprivatesectors;(c)improvingrelationshipwith respondent; (d) increasing the amount and competence of human resources instatisticswhoareprofessional,possessinghigh-integrityandcommitted;(e)toimprovethe relationship with data user; and (f) to improve quality, quantity, and usage ofinformationandcommunicationtechnologyinstatistics.South-SouthandTriangularCooperation

Withregards toSSTC, Indonesiawill strengthenmonitoringandevaluationof itscooperation and improve the utilization of new sources of funding and mechanisms.Furthermore, Indonesia will create enabling environment for participation of privatesectorininternationaldevelopmentcooperation,inordertosharpentheroleofSSCTinsupporting trade and investment. Lastly, Indonesia shall establish a donor andinternationaldevelopmentcooperationagency.

4.2 ProgressofVNR2017and2018

4.2.1 Goal1.NoPoverty

A. TrendAnalysis

ThediscussionofGoal1.NoPovertyisfocusedontheachievementoflowpovertylevel and social protection coverage. SDG1 indicators include: (1) level of extremepoverty, (2) percentage of population living below national poverty line, and (3)proportionof householdswith theFamilyHopeProgram/Conditional CashAssistancerecipients.Variousidentifiedchallengesandpoliciestoovercomethepovertyissuesareoutlinedbelow.

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27.5

4.6

17.75

9.66

0

5

10

15

20

25

30

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure106.TrendsofPovertyReductionbasedonExtremePovertyandNationalPovertyLines,2006-2018

Source:WorldBankandBPS-StatisticsIndonesia(FiguresofSeptember)

a. SocialProtection

Toacceleratepovertyreduction,anintegratedstructuringofsocialassistancewasinitiatedwhich includes theFamilyHopeProgram(ProgramKeluargaHarapan/PKH -Conditional Cash Assistance). In order to ensure that families with the lowest socio-economic status have access to basic services like education and health, in 2018, thecoverageofPKHrecipientswasincreasedto10millionpoorfamilieswithbudgetofIDR17.42Trillion.

TotalParticipantsinthousand----BudgetAllocationinIDRBillionFigure107.TrendofPKHBudgetAllocationandTotalParticipantsin2014-2018.

Source:MinistryofSocialAffairs,variousyearsreporting

B. Challenges

Themainchallengeistheslowdownofpovertyreduction.Thelowerthepovertylevel, the more chronic poverty challenges, thus innovation and new strategies areneeded. The reduction in poverty is carried out through twomain strategies, namelydecreasingcostsandincreasingincome.Thestrategytoreducetheburdenofexpenditure

43905580

7790

12480

17420

2,797.8 3,511.05,981.5

6,228.8

10,000.2

0

5000

10000

15000

20000

2014 2015 2016 2017 2018

YearExtremePoverty(1,9USD)

NationalPoverty

2006 27.5 17.752007 22.76 16.582008 21.55 15.422009 18.43 14.152010 15.95 13.332011 13.58 12.492012 11.76 11.662013 9.83 11.472014 8.25 10.962015 7.5 11.132016 6.8 10.72017 5.7 10.122018 4.6 9.66

NationalPoverty

ExtremePoverty

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throughsocialassistancestillcontinues.However,variouschallengessuchasinadequatedata, long administrative procedures, and suboptimal programs are still remain. Inaddition,thehighlyvulnerablegroupsarealsoachallengethattheGovernmentneedtoaddress.AsofMarch2018,asmuchas20.2%ofthepopulationarestillvulnerabletopoverty(SusenasMaret,2018).TheGovernmentneedstoempowerthemsothattheydonot fall back into poverty, and efforts include providing assistance to access capital,capacity building for business skills, entrepreneurship development, partnerships andintermediation.However, theseeffortsarenotyetoptimal,and improvementsarestillbeingmade.

C. TheWayForward

Based on the Government AnnualWork Plan Document, the policy directive forpoverty reduction in 2019 and beyond, apart from macro policies support thatencourages an inclusive economy, a stable inflation rate is maintained to createproductiveemployment.Thoseeffortsalsoneedtobesupportedbyaffirmativepoliciesinseveralpolicydirective,including:(1)thedevelopmentofdigitalizationandintegrationofsocialassistancedistribution,suchasNon-CashFoodAssistance(BantuanPanganNon-Tunai/BPNT), educational assistance for poor students and targeted subsidies; (2)strengtheningthecomprehensiveandintegratednationalsocialsecuritysystem(SJSN)forhealthandemploymenttoprotectthepoorandvulnerablefromsocialoreconomicshocks;(3)strengtheningthesocialprotectionsystemforcertaingroupssuchaspeoplewithdisabilitiesandelderlypeoplewhoarevulnerable topoverty; (4) Integrating theunifieddatabase (UDB)withpopulationbasedataandBPJSKesehatan to improve thetarget of government assistance; (5) Development of activities to increase economicindependence and income for the poor and vulnerable groups, including throughstrengthening of family economy; business intermediation and social impact; andstructuringoftenureandlandusethroughtheimplementationofagrarianreformandsocialforestry.

4.2.2 Goal2.NoHunger

ThediscussionofGoal2.ZeroHungerisfocusedontheachievementofnutritionimprovementandfoodavailability.SDG2indicatorsinclude:(1)prevalenceofstuntinginchildrenunderfiveyearsold,(2)prevalenceofwastinginchildrenunderfiveyearsold,(3)desirabledietarypatternscore.Variousidentifiedchallengesandpoliciestoovercomethehungerandmalnutritionareoutlinedbelow.

A. TrendAnalysis

a. NutritionImprovement

Theprevalenceofstuntinginchildrenunderfiveyearsofagedeclinedoverthelast10years,however theproportionremainedhighat30,8% in2018.Theprevalenceofwastinginchildrenunderfiveyearsofagedecreasedsignificantlyfrom13,6%(2007)to10,2%(2018).

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b. FoodAvailability

Thequalityoffoodconsumptionimproved,indicatedbyhigherscoreofdesirabledietarypattern(DDP)from75.7(2009)to90.7(2018).Thisshowsthatfoodavailability,food diversity, community knowledge on food and nutrition, physical and economicaccessibilityhasimprovedfromtimetotime.

Figure110.DesirableDietaryPattern(DDP)Score,2009-2018

Source:FoodSecurityAgency,MinistryofAgriculture,2009-2018.

B. Challenges

Intermsofovercomingtheproblemofmalnutritioninchildren,issuesofwelfareandfoodsecurityofthehouseholdarecloselyrelated.Lowhouseholdfoodsecuritycancauselowquantityandqualityofchildren’snutritionalintake.Theinfluencingfactorsarepoorparenting,mainlycausedbylowlevelsofparents’education,poorenvironmentalconditions (such as access to sanitation and clean water), and low access to healthfacilities.

In terms of food provision, the challenges and problems that occur include: (1)conversionofagriculturallandforotherusescontinueswhileexpansionofagriculturallandremainslimited;(2)degradationofthequalityofwaterresourcesandcompetitionofwateruseforotherpurposes;(3)foodagriculturebusinessisdominatedbysmall-scalefarmerswhoareoldwithrelativelylowformaleducation,thustheyhavelimitedaccess

36.8 35.6 37.2

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2007 2010 2013 2018

13.6 13.312.1

10.2

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75.7

85.7 85.6 83.5 81.4 83.4 85.2 8690.4 90.7

65707580859095

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure108.ThePrevalenceofStuntinginChildrenunderFive

YearsofAge,2007-2018Source:IndonesiaBasicHealthResearch

(Riskesdas)

Figure109.ThePrevalenceofWastinginChildrenunderFive

YearsofAge,2007-2018Source:IndonesiaBasicHealthResearch

(Riskesdas)

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totechnology,information,markets,andbusinessfinancing;(4)increasingfrequencyandintensityofnaturaldisastersrelatedtoclimatechange;(5)theproportionofyieldlossandfoodwasteisstilllarge;(6)logisticalinfrastructureandfooddistributionareunequal,particularlyintheeasternregionofIndonesia,causingfoodinsecurityintheregion;and(7)limitedpartnershipsbetweensmallandlargescaleagriculturalenterprises.

C. TheWayForward

BasedontheGovernmentAnnualWorkPlanDocument,thepolicydirectivefortheissue ofmalnutrition and the provision of food in 2019 and beyond is as follows: (1)accelerating the improvementofcommunitynutrition; (2)strengthening foodsecuritytowardsfoodsufficiencybyincreasingstaplefoodproduction,(3)stabilizingfoodprices,(4)improvingthequalityoffoodconsumption,(5)mitigatingdisruptionstofoodsecurity,and(6)improvingthewelfareoffoodbusinesses,especiallyfarmers,ranchers,fishermenandfishfarmers.

4.2.3 Goal3.GoodHealthandWellBeing

Effortstakentoensurehealthylivesandpromotewell-beingforallatallagesare;reducing maternal and infant mortality, combating communicable and non-communicable diseases, promoting reproductive health and improving The NationalHealthInsurance(JaminanKesehatanNasional/JKN)coverage.

A. TrendAnalysis

a. MaternalMortalityRate(MMR)

AttheendofMDGsimplementation(2015),theMMRhasbeenreducedfrom346(Population Cencus/SP 2010) to 305 per 100,000 live births (Intercensal PopulationSurvey/SUPAS2015),whichconstitutes2.40%annualreductionrate(ARR).Thenationaltargetof306per100,000livebirthsin2019hasbeenachieved.However,MMRglobaltargetoflessthan70per100,000livebirthsin2030canonlybeachievedwithARRof9.50%.Therefore,newcommitmentsandbreakthroughsareneeded.

201

Figure111.TrendofMMRSource:Variouspublications

b. MortalityRateofInfants,Under-fivesandNeonatals

TheInfantsMortalityRate(IMR)andunder-fivesMortalityRate(U5MR)continueto decrease. Policy innovation and acceleration are needed to achieve global target in2030toreduceNMRtoatleastaslowas12per1,000livebirthsandU5MRtoatleastaslowas25per1,000livebirths.

Figure112.TrendofIMR,U5MRandNMR

Source:IDHS,BPS-StatisticsIndonesia

c. CommunicableDiseases

Thetrendofnon-communicablediseasesinIndonesiashowsatendencytodeclinefromyeartoyear.HIVprevalenceintheadultpopulationwasmaintainedbelow0.5%,atthe levelof 0.33%(2018).Thedecline inthe incidenceof tuberculosis(TB)showedapromisingdevelopmentof319 incidentsper100,000population(2017) from338per100,000 population (2011). The malaria illness trend based on API (Annual ParaciteIncidence)decreasedfrom1.75(2011)to0.84per1000population(2018).Malariahasbeeneliminatedinhalfofthecountry’sdistricts(285districts)in2018.

9781

5846 44 40

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6857

4635 34 32

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22 20 19 19 150

20

40

60

80

100

120

1991 1994 1997 2002/2003 2007 2012 2015

AKBa AKB AKN

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Figure113.TrendofCommunicableDiseases

Source:GlobalTBReportandDiseasePreventionandControlSurveillanceReport,DirectorateGeneralofDiseasePreventionandControl,MinistryofHealth

d. Non-CommunicableDiseases(NCD)

1. RiskFactorsofNon-CommunicableDiseases

Based on Basic Health Research (Riskesdas), the prevalence of hypertension atpopulation18yearsoldandaboveincreasedfrom25.8%(2013)to34.1%(2018).Duringthesameperiod,theobesityprevalenceatpopulation18yearsoldandaboveincreasedfrom15.4%to21.8%.Smoking,asidefromunbalanceddietandlackofphysicalactivities,contributestotheincreaseofNCDsprevalenceinIndonesia.Theproportionof18yearoldsandbelowwhoaresmokingincreasedfrom7.2%to9.1%.

Figure114.TrendofRiskFactorsofNon-CommunicableDiseases

Source:Riskesdas2013-2018,Sirkesnas2016

e. ReproductiveHealth

1. ContraceptivePrevalenceRate(CPR)

The improvement of reproductive health services contributed to an increase incontraceptiveprevalencerate(CPR)ofallmethodsfrom49.7%in1991to63.6%in2017accordingtoIndonesiaDemographicandHealthSurvey(IDHS).

338335

332329

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2011 2012 2013 2014 2015 2016 2017

incidenceoftuberculosisper100.000population

1.75 1.691.38

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2011 2012 2013 2014 2015 2016 2017 2018

AnnualParasiteInsidence/API

7.20 8.80 9.10

25.8032.40 34.10

15.4020.70 21.80

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10.00

20.00

30.00

40.00

2013 2016*Sirkesnas 2018

Smoking≤18yo Hypertension≥18yo Obesity≥18yo

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Figure115.TrendoftheContraceptivePrevalenceRate

Source:IDH

2. FertilityRate

Thetotalfertilityrate(TFR)hasreducedfrom2.6in2012to2.4childrenper1,000womenin2017.Strongeffortsareneededtoachievethenationaltargetof2.3childrenper1,000womenin2019.Meanwhile,theagespecificfertilityrate(ASFR)ofwomenatthe age of 15-19 years old decreased from 51 (2007) to 36 births per 1,000women(2017).

Figure116.TrendofTFRandASFR

Source:IDHS,BPS

f. UniversalHealthCoverage

1. JKNCoverage/JaminanKesehatanNasional

Toprovidehealthservicestoallcitizens,thetotalnumberofpopulationcoveredbyJKNcontinuestoincrease.Upto31December2018,78.7%ofthepopulationhavealreadyenrolledtoJKN.

49.7

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Figure117.TrendofJKNCoverage

Source:BPJS-Health

2. UnmetNeedofHealthServices

The expansion of JKN coverage contributes to the decrease of unmet needs forhealth services,which is thepercentageof thepopulationwithhealth complaints thatdisrupted theirdailyactivitiesbutdonot seek treatment.Theunmetneeds forhealthservicesdecreasedfrom9.9%in2006to4,91%in2018.

Figure118.PercentageofUnmetNeedsforHealthServices

Source:Susenas,BPS-StatisticsIndonesia

B. Challenges

a. MortalityRateofMaternals,Infants,Under-fiveandNeonatals

The challenges ahead are: 1) improving the quality of basic and referral healthservices,aswellasmaternalandneonatalemergenciesincludingcompetencyofhumanresources (HR), facilities, Health Centers (Puskesmas) capable of Basic EmergencyNeonatalObstetricServices(PONED)andhospitalscapableofComprehensiveEmergencyObstetricNeonatalServices(PONEK);2) improvementofreproductivehealthservices’qualityformaternal,brideandgroomtobe,aswellasadolescents;3)increasingmaternal

61.55

66.50

71.80

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50.00

60.00

70.00

80.00

2015 2016 2017 2018

JKNCoverage

9.9

7.8 7.68.3

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5 5.2 4.66 4.335.26 4.91

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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knowledge on antenatal care and parenting; 4) increasing the role of the communitythrough Desa Siaga, the Maternity Planning and Prevention Complication Program(Program Perencanaan Persalinan dan Pencegahan Komplikasi/P4K) and IntegratedHealthPosts (Posyandu); and5)health educationandpromotion, includingbenefit ofimmunization.

b. CommunicableDiseases

Thechallenges forending infectiousdiseaseepidemicsare:1) scalingupproveninterventionsforpreventingandcontrollingHIV/AIDS,TB,andmalariasuchasvoluntary,conseling,andtesting(VCT)toreduceunder-reportingofHIV/AIDScases;theuseofTBMolecularRapidTestmethodstoimprovethefindingsofnewTBcases,andtheuseofinsecticide-treated bed nets to prevent malaria transmission, 2) increasing screeningcoverageespeciallyforhighriskgroup;3)increasingeffectivedrugtreatment,includingpreventionofMultiDrugResistance (MDR);and5) increasing logisticalneeds,humanresourcesandfundingforHIV/AIDS,TBandmalaria.

c. Non-CommunicableDiseases(NCD)

Challenges toreducemorbidityandmortalitydue toNCDs include:1) improvingscreeningcoverageforNCD;2)reducingunhealthylifestylessuchassmoking,unhealthydiets, and lack of physical activity; 3) providing regulation to prevent NCD such asincreasing thenational tobacco excise, imposingbanon cigarette advertisements, andreducing consumptionof sugar, sodium, and fat; 4) improvingurbanenvironments toencourage physical activity; and 5) increasing the quantity and quality of humanresourcesaswellashealthcarefacilitiesasthenumberofNCDprevalenceincreases.

d. ReproductiveHealth

Thechallengesaheadare:1)increasingwomen’seducationparticipationtopreventearlymarriage;2)increasingtheuseofLong-TermContraceptiveMethods(MKJP);and3)improvingreproductivehealtheducation,especiallyforschool-agechildren.

e. UniversalHealthCoverage

The future challenges are: 1) expandingmembership of JKN especially informalsectorsandworkers;2) improvingsupplysidereadiness throughencouraginggreatercooperation between BPJS-Health and the private health facilities; and 3) improvingadequatemanagementofJKN.

C. TheWayForward

Basedon theGovernmentAnnualWorkPlan, thepolicydirective forhealth isasfollows:(1)acceleratingthefulfillmentofaccesstoqualitymaternal,child,adolescentandelderly health services; (2) improving access and quality of family planning andreproductivehealthservices;(3)acceleratingtheimprovementofcommunitynutrition;(4)improvingdiseasecontrolandenvironmentalhealth;(5)improvingaccesstoqualitybasic health services; (6) improving access to quality referral health services; (7)increasing the availability, affordability, equity and quality of pharmaceuticals andmedical devices; (8) increasing the effectiveness of drug and food supervision; (9)increasing the availability, distribution and quality of health human resources; (10)

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strengthening the Healthy Life Style Movement (Gerakan Masyarakat HidupSehat/Germas); (11) strengthening management and research, as well as healthinformation systems; (12) strengthening the implementationof the SJSN in thehealthsector;and(13)increasingtheeffectivenessofhealthfinancing.

The policy directive in the framework of family planning development, are: (1)strengtheningaccess toequitableandquality familyplanningandreproductivehealthservices,bothintheSJSNKesehatanandNon-SJSNKesehatan;(2)strengtheningaccesstoequitableandqualityfamilyplanningandreproductivehealthservices,bothintheSJSNKesehatan and Non-SJSN Kesehatan; (3) strengthening population managementinstitutions(includingelderlies)andeffectivefamilyplanning.

4.2.4 Goal5.GenderEquality

Genderequalityandwomenempowermentachievementsarenotonlyrelated toSDG5butalso related to themeasurementofothergoals thathavespecific targetsongender issues.However,notallgenderrelated indicators in theSDGsareavailable forreportingthisyear.Thereportpresentsgoals,targetsandindicatorsofwhichdataandinformationarealreadyavailable,includingchildmarriage,equalopportunityforwomenat all decision-making levels, as well as the use of technology to enhance womenempowerment.

A. TrendAnalysis

EliminationofAllHarmfulPracticesAgainstWomenandGirls

1. ChildMarriage

Early marriage practice is prevalent in Indonesia. However, the percentage ofwomenat20-24yearsofagewhoweremarriedforthefirsttimeatorbefore15yearsoldandatorbefore18yearsolddeclinedfortheperiodof2011-2015.Butthepracticeofchildmarriageincreasedsince2016until2018.

Figure119.Percentageofwomenat20-24yearsofageweremarriedforthefirsttimeorliving

togetherwithoutbeingmarriedatorbefore15yearsoldandatorbefore18years’oldSource:BPS-StatisticsIndonesia

1.38 1.15 1.05 0.99 0.6 0.54 0.48 0.56

13.97 14.02 13.58 13.5512.14

11.11 11.54 11.21

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2011 2012 2013 2014 2015 2016 2017 2018

≤15yo ≤18yo

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2. MedianAgeatFirstMarriage

The decrease of childmarriage prevalence has an impact on the increase of themedianageatfirstmarriage.Themedianageatfirstmarriageofwomen25-49yearsoldwhowereevermarried,increasedfrom17.1yearsoldin1991to21.8yearsoldin2017.

Figure120.TrendofMedianAgeatFirstMarriageSource:IndonesiaDemographicandHealthSurvey(IDHS)

Women'sParticipationinDecisionMaking

1. ProportionofSeatsHeldbyWomeninNationalParliament

The proportion of seats held by women in House of Representatives (DewanPerwakilan Rakyat/DPR) at the national level tend to increase, yet fluctuate. TherepresentationofwomenatDPRinthe2004generalelectionwas11.84%andincreasedto17.86%in2009.However,itdecreasedslightlyto17.32%inthe2014generalelection.

Figure121.PercentageofWomenDPRMembersin1950-2014GeneralElection

Source:BPS-StatisticsIndonesia,2015

In addition, each province are allocated four Regional Representative Councils(DewanPerwakilanDaerah/DPD)members. Figure123 shows that22provinceshavewomenDPDmembers fortheperiodof2014-2019;sixprovinceshaveequalmenandwomenrepresentatives,while3provinceshavemorewomenthanmen(3:1).TheotherelevenprovinceshavenowomenDPDmembers.

0

10

20

3017.1 18.1 18.6 19.2 19.8 20.1 21.8

MedianAgeatFirstMarriage

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Figure122.NumberofWomenDPDMembersbyProvince,2014-2019

Source:BPS-StatisticsIndonesia,2015

2. ProportionofWomeninManagerialPosition

The proportion of women in managerial position (Echelon 1-II) at executiveagencies increased in2011-2017.ThepositionofDirector (Echelon II) increased fromaround 8.30% to 13.06%, while the position of Director General/Secretary General(EchelonI)increasedfrom9.17%to15.21%.

Figure123.PercentageofWomenCivilServantsasEchelonI-IV

Source:BPS-StatisticsIndonesia2012-2016/StatePersonnelAgency

TechnologytoImproveWomen’sEmpowerment

1. ProportionofIndividualsWhoOwnaMobileTelephone

The advancement of information and communication technology has givenconvenienceandopenedopportunityforeverybody.Thishasalsoenabledwomentobemore empowered by giving them access to knowledge for education, carreerimprovement,andentrepreneurshipopportunitywhilestillundertakingtheirdomesticrole,aswellasenablethemtointeractwithawidercommunity.

9.17

16.4120.09 20.66

15.6717.98

15.21

8.3

12.8415.04 16.39

13.04 13.41 13.06

15.8519.58 20.6 21.19 19.72 21.09 22.53

25.86

32.38 33.39 34.39 33.19 34.63 36.28

24.54

31.12 31.18 30.4732.64 31.23

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EselonI EselonII EselonIII EselonIV EselonV

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TheSusenasshowsthattheproportionofwomenwhoownamobiletelephoneislessthanmen.However,thereisanincreasedofproportionofindividuals(womenandmen)who own amobile telephone for the last two years. In 2015 the percentage ofwomenwhoownamobiletelephoneis50.40%andthisnumberincreasedto57.19%in2018.Atthesameperiodtheproportionofmenwhoownamobiletelephoneincreasedfrom63.40%to67.59%.

B. Challenges

a. EliminationofAllHarmfulPracticesAgainstWomenandGirls

Challengesfacedtoreducechildmarriageratesaswellasbirthratesattheageof15-19yearsare:1)synergizingandharmonizingexistinglawsandpolicies,suchastheMarriageLaw,ElectionLaw,PopulationLawwiththeChildProtectionAct;2)changingthe norms and values in society with regards to early marriage; 3) addressingvulnerabilityduetopovertyandprovidegreateropportunitiesforgirlstoobtaintertiaryeducationandeconomicskillstraining;and4)increasingcoverageofeducationservices,especiallyintheFrontier,Outermost,andDisadvantagedRegion(3T).

b. Women'sParticipationinDecisionMaking

Thechallengesfacedarecapacitybuildingfor:1)womencadresofpoliticalparties;2) women as religious leaders and community leaders; 3) women candidates forGovernorsandMayors;4)electedfemalelegislativemembers;and5)womenGovernorsand Mayors. Another challenge in increasing women's representation is affirmativeaction,especiallythroughpoliticalbreakthroughs.

c. TechnologytoImproveWomen’sEmpowerment

The challenge faced is to increase the scope of the use of information andcommunicationtechnologyforwomen'sempowermentactivities.

C. TheWayForward

Based on the Government AnnualWork Plan Document, the policy directive forachievingthegoalofgenderequityandequalityin2019andbeyondisasfollows:(1)improvingthequalityoflifeandtheroleofwomeninvariousfieldsofdevelopment;(2)increasing the protection ofwomen from various acts of violence, including criminaltraffickinginpersons(TindakanPidanaPerdaganganorang/TPPO);(3)increasingthecapacity of gender mainstreaming (Pengarusutamaan Gender/PUG) institutions andinstitutions for protecting women from various acts of violence; (4) improving thedevelopment of adolescent reproductive health in the context ofmaturing the age ofmarriageandpreparingforfamilylife;and(5)increasingfamilyrolesandfunctions.

4.2.5 Goal6.CleanWaterandSanitation

The discussion of Goal 6 in Indonesia is focused on ensuring availability andsustainablemanagementofwaterandsanitationforall,which ismeasuredby2(two)mainindicators,namely(1)Theproportionofhouseholdswithaccesstoasourceofsafe

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drinking-waterand(2)TheProportionofhouseholdsusingsafelymanagedsanitationservices.

A. TrendAnalysis

a. AccesstoCleanWater.

HouseholdswithaccesstocleanwaterinIndonesiahavecontinuouslyimprovedinrecentyears,from58.92%in2015to61.29%in2018.Thisachievementwaspartofthegovernment'seffortstofulfillthetarget,householdswithaccesstocleanwater.

Figure124.Theproportionofhouseholdswithaccesstocleanwater2015-2018

(Source:RTRPJMN2020-2024).

b. AccesstoSanitation.

Proportionof householdswith access to sanitation in Indonesiahas consistentlyimprovedeveryyear,from67.95%in2015upto74.58%in2018.

Figure125.Theproportionofhouseholdaccesstosanitation2015-2018

(Source:RTRPJMN2020-2024)

B. Challenges

Challengesinprovidingaccesstocleanwaterandsanitationinclude:(1)provisionofadequateandaffordablehousing,especiallyforlow-incomegroups;(2)infrastructureandbasicservicesforsettlementsareofteninadequate,thustriggeringtheexpansionof

58.92

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Perc

enta

ge (%

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71.7873.07

74.58

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slums;(3)provisionoflandforhousing,especiallyforlow-incomegroupsinurbanareas;and(4)limitationinfinancinghousingforlow-incomegroups.

C. TheWayForward

Improveaccesstocleanwaterandsanitationbyusingseveralstrategies,including:(1)Synergyininfrastructureprojectsofhousing,settlement,cleanwaterandsanitation,through improved planning, coordination among development stakeholders, andharmonizedfunding;(2)Improvementofroles,capacities,qualityofperformanceinlocalauthorities, and institutions managing access to clean water and sanitation; and (3)Improvementininvolvementandlifestyletransformationincommunities.

4.2.6 Goal7.AffordableandCleanEnergy

Goal7focusesonfourindicators,namely(1)ElectrificationRatio(2)Electricitypercapita consumption, (3) Gas Household Network (City Gas Network) (4) RenewableEnergyMix(5)PrimaryEnergyIntensity.ThischapteralsodiscussesonthechallengesandpoliciesforcleanandaffordableenergyinIndonesia.

A. TrendAnalysis

Increasing competitiveness of Indonesia’s economy is supported by energysecurity.Energysecurityfocusesonthesupplycleanenergyandoptimizationofgassesandcoalusage,andalsominimalizeimportdependencyinparticularenergyresources.In2018,naturalgasliftingreaches1,140-thousand-barreloilequivalentperday(BOEPD)or99.1percentfrom2018target,whichisalignedwiththeproductionfromtheseveralnatural gas fields built that have operated. Development of city gas network is alsoincreasing,reaching463.619householdsthroughcitygasnetworkin2018.

Figure126.DevelopmentofCityGasnetwork

Source:MinistryofEnergyandMineralResources,2018

200,000 220,363

319,514373,190

463,619

2014 2015 2016 2017 2018

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Figure127.RatioofElectrification2010-2019Source:MinistryofEnergyandMineralResources,2018

Averageofprimaryenergyintensityis500BOE(BarrelsOilEquivalent)perbillionrupiah and final energy intensity around 325 BOE/billion rupiah. The big differenceshowsthatthereisaninefficiencyintheprocessofenergyconversion.Moreover,lossesduringenergytransmissionanddistribution,especiallyinelectricityenergyisstillhigh.In2018,capacityfactorfromalltypeofelectricitygeneratoris62.6%.Lossesandownuseduringelectricitytransmissionanddistributionis9.6%,decreasingfromthepreviousyear.Electricitytransmissionismoreeffective,thereforecostofproductioncanalsobemoreefficient.Besidesinefficiencyinelectricityprovision,inefficiencyisstillachallengeincrudeoilconversionintofuel.Averageofrefineryfuelandlossesofnationaloilliftingreaches84 thousandbbarrelsperdayoraround8.1% foroil liftingproduction,whileefficiencyofnaturalgasconversionprocessintoLNGinLNGrefinaryis84%onaverage.

Thesavingofenergyconsumptionisstilllow,whileithasapotentialsavingsof10-15%oftotalenergyconsumption.Energyaudithasbeenconductedforidentifyingenergywastepointsandmeasurestoimproveenergyefficiencyuseforstrategicmanufacturingindustries,suchassteel,aluminum,pulp/paper,miningandtextile.

B. Challenges

Accesstoelectricityisnearuniversal,buttherearestillregionswithelectrificationratiounder65%.Themainproblemsinthecoverageofenergyservicesandelectricityareaccesstonaturalgasforhouseholdsandaccesstoelectricity.IncentralandeastregionofIndonesia,theaccessisstilllimitedandshowsinequality.Similarly,inprovisionofnaturalgasinfrastructure,especiallyforhousehold,industryandtransportation,thedistributionisrelativelyunequalandcanonlybeaccessedbylimitedpeople.

98.3

67.2

7376.6

80.5

84.3

88.391.2

95.397.5

2010 2011 2012 2013 2014 2015 2016 2017 2018

Realization Target

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Challengesinqualityofenergyprovisionandelectricityincludes(1)Highusageoffossilenergyandlowrenewableenergyinenergymix;(2)Slowdevelopmentofenergyinfrastructure; (3)Unequal access of electricity inwhich fewhouseholds still havenoelectricity;(4)Uncompetitiverenewableenergypricesandsubsidiesnotontargetyet;(5) Decreasing national energy reserve; and (6) Energy resources are considered ascommodity,notasdevelopmentcapital.

Potentialofenergysavingsperyearfrommanufactureindustryisrelativelyhigh,about10-15%,butitneedsextraefforttomaximizethispotential.Problemsinincreasingenergyefficiency includes: (1)Lackof incentive to industrialstakeholder forefforts inenergysaving;(2)Availabilityoffinancialinstrument/fiscalsuchasprojectfinancingandinterestratesubsidies;(3)Availabilityofenergyuserdataandfinancialinstitutionwithinadequate human resources for research on energy efficiency investment; and (4)CoordinationbarriersbetweenMinistries/InstitutionandSub-NationalGovernment inpromotingenergysavingsforstreetlightingandgovernmentbuildings.

C. TheWayForward

To increaseenergyavailability, thepolicies includes(1) Increaseprimaryenergyproduction, especially for oil and gas from field which has decreased in capacity ofproduction;(2)Increasebufferreserveandoperationalofenergy;(3)Increasesupplyofenergy and electricity, prioritizing on primary energy, energy mix, and energyconservation;(4)Improveinstitutionalizationandregulationofenergyandelectricitytocreate reliable services including formulation of tariff and subsides policy based oneconomicvalue,fairnessandregionspecificcondition;(5)Improvecontributionofnewandrenewableenergy inenergymix; (6) Improveaccessibilityofenergy; (7) Improveenergyefficiency;(8)Improvemanagementoffuelsubsidiestobemoretransparentandontarget;and(9)UtilizepotentialofwaterresourcesforHydropowerPlant.

4.2.7 Goal9.Industry,Innovation,andInfrastructure

Goal 9 focuses on 10 indicators namely: (1) steady road condition, (2) toll roaddevelopments,(3)lengthofrailway,(4)numberofairports,(5)numberofstrategicports,(6) value-added manufacturing as a proportion of GDP, (7) GDP growth rate ofmanufacturingindustry,(8)governmentresearchexpenditureasaproportionofGDP(9)proportionofpopulationservedbymobilebroadband;(10)proportionofmobilephoneowners.Inaddition,theissectionalsodescribeschallengesandpoliciesfordevelopmentofinfrastructure,industryandinnovation.

A. TrendAnalysis

Indonesia isthe15th largesteconomycountryintheworldwith5,17%economicgrowth in 2018. According toGlobal CompetitivenessReport 2017-2018, Indonesia isranked 36 out of 137 countries, previously ranked 41. Increasing ratings is alsoexperienced inLogisticPerformance Index, from63 to46 in2016.Oneof the sectorscontributingtotherankingisinfrastructuredevelopment.During2015-2018,Indonesia's

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infrastructure developmentwas aimed to develop national inter-regional connectivityandintegrationbetweenstrategicregions.Infrastructureprojectsaredistributedacrossregions, indicating government’s commitment to continue to drive competitiveness,productivityandsimultaneouslyreducinginequalityamongregions.

In 2017, national steady roadreached92%,whichisaslightincreasecompared to the previous year. Until2018, construction of roads andbridges reached 3,432 KM with 947KM of toll roads, 39.8 KM of bridgesand134unitsofsuspensionbridges.

Development of transportationconnectivity has also been improved.Developmentoftraintransportationisindicatedbytheexpansionofrailways,includingduallinesandreactivationasmuch as 719.86 km'sp (kilometerspoor) for the period of 2015-2018,improvement and rehabilitation of

railwaywhichreached423.6km'spfortheperiodof2015-2018,constructionofLightRailTransit (LRT) inSouthSumatra, Jakartaand Jabodetabek (completed in2019)aswellMassRapidTransit(MRT)whichwillcommenceoperationsinearly2019.

Development of air transportation is indicated by the development of 10 newairports, and revitalization and development of 177 airports in disaster-vulnerable,isolatedandborderareasin2018.Developmentofseatransportationisindicatedbythedevelopmentof19seaportsin2017andalso7moreseaportswhichwillbecompletedin2019.Goodscapacityoftransportationhasalsoincreasedto19.7millionTEUs(twenty-footequivalentunits)/yearin2017.

Contributionofmanufacturing sectorasaproportion toGDPdeclined slightly in2018to19.86%duetoadeclineinmanufacturingofoilandgas.Despitethedecrease,Indonesia still experienced positive growth in manufacturing sector and themanufacturingsectorisstillthelargestcontributortoGDP.Themanufacturingsectoralsoemployed14.72%oftheworkforcein2018,withahighproportionofemploymentinthefoodindustry.

82.27

87.7290.82

92.95 93.95 9391 92

2010 2011 2012 2013 2014 2015 2016 2017

Percentage of National Steady Road Condtion (%)

Figure128PercentageNationalSteadyRoadCondition

Source:MinistryofPublicWorksandPublicHousing

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Figure129.ProportionofValue-AddedManufacturingSectortoGDP(%)

Focusonmicroandsmallindustry,basedonsurvey(StatisticsIndonesia,2015).In2011-2015,SMIsvalue-addedasproportionofindustrialGDPfluctuatedfrom2011to2015andreached3.74%in2015.OnereasonforperformancefluctuationsinSMIsisthelimitedaccesstoformalfinancingduetorestrictioninprovidingcollateralandbusinessfeasibility. The government addressed this issue by increasing Microlending (KreditUsaha Rakyat/KUR) distribution, with as much as Rp120 trillion distributed by 31December2018.ProportionofKURdistribution inthemanufacturingsector increasedfrom5.645%to7.34%inDecember2017,accompaniedwithadecreaseinKURinterestratefrom9%to7%.

Increased KUR distribution and lower interest rates were also followed by anincrease in number ofMicro, Small andMediumEnterprises (MSME) credit accounts,includinginthemanufacturingsector,from8.4millionaccountsin2010doublingto16.3millionaccountsin2018(BankIndonesia,2018).ThechallengesfacedindevelopingSMIsbesidesofcreditaccessareaccessofmarketandqualityofproductwhichSMIsproductfromIndonesiahavenotbeenabletosupplylargeindustriesandexportmarket

Sustainablemanufacturinggrowthisalsodeterminedbyscienceandtechnology,aswellasinnovation.AdoptioncapacityofscienceandtechnologyinnovationinIndonesiaisstilllow,indicatedbyIndonesia'srankingof85outof126countrieswithintheGlobalInnovationIndex(GII)scoreof29.8onascaleof0-100(2018).Thislowrankisduetoinadequateresearchanddevelopment infrastructure.Thenumberofhumanresourcesforscienceand technology is still limitedasonly14.08percentof themhavedoctoraldegrees.

GovernmentResearchExpenditureasaproportionofGDPinIndonesiaisstilllow,only0.2percentin2015.Ecosystemforinnovationhasnotbeenfullycreatedsothatthedown-streaming and commercialization process of research and development is notoptimal.TripleHelixcollaborationsupportedbyadequatecapacityofhighereducationasasourceoftechnologicalinnovation(centerofexcellence)alsoneedstobecontinuouslyimproved.

Developmentofscienceandtechnologyisalsoindicatedbyaccessandcapabilitytoinformation and communication technology. The proportion of cellular phone ownersalsocontinueto increasefrom38.5%in2010to62.41%in2018(Statistics Indonesia,2018).Indonesiaislistedasthe8thcountryintheworldwiththelargestpopulationof

22.04 21.76 21.45 21.03 21.08 20.97 20.51 20.16 19.86

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internet users (Internet World Statistics). This is supported by the number ofdistricts/citiescoveredbynationalfiberoptic.Upto2018,499outof514districts/citieshavebeen coveredwith 3Gnetworks, and492of themhavebeen connectedwith 4Gnetwork.In2019,itistargetedthatalldistrictsandcitieswillbeconnectedtobroadbandbackbonenetwork jointlydevelopedby telecommunicationoperatorsandcooperationbetween the Government and Business Entity through the Palapa Ring project toovercomethedigitaldivide.

B. Challenges

Challengesinbuildingresilientinfrastructure,promotinginclusiveandsustainableindustrializationandfostering innovation include:(1)equityof integrated,qualityandaffordable infrastructure development to support the provision of basic services, theincrease of connectivity and performance of productive sectors by acceleratinginfrastructuredevelopmentprioritizedfortheEasternIndonesiaRegion(KawasanTimurIndonesia/KTI),smallislands,frontierandoutermostregionsofIndonesia;(2)improveSMIs performancewhich are stimulatedwith credit access and producing capacity tomatch the quality of market needs; (3) enhance adequate budget allocation throughprivatesectorinvolvementinRandDfunding,aswellaslinksbetweenqualityofhumanresources, research and development and also industrial development needs; and (4)increaseutilizationofadvancesininformationandcommunicationtechnologyoptimallytoincreaseproductivity,productdiversificationandindustrialcompetitiveness,aswellasexpandingaccesstomarkets.

C. TheWayForward

BasedonAnnualWorkPlanDocumentthepolicydirectiveforthedevelopmentofinfrastructure,industryandinnovationin2019areasfollows:1. Support sub-national governments in increasing transportation quality through

provincialsteadyroad,anddistrict/cityroadsthatsupporttransportationsystemconnectivity and mobility to public services facility as well as local centers ofgrowth/economy.Thegoalistosupporttheincreaseinlocalsteadyroad(provincialordistrict/city)accordingto2015-2019NationalMedium-TermDevelopmentPlan.

2. BuildIndonesiafromtheborderbystrengtheningvillagesandtheruralareaintheframework of a unitary state, through fulfilling basic services and increasingaccessibility to basic services in underdeveloped regions, border regions,transmigrationregions,andpopulatedoutermostislands.

3. Support regional governments in increasing their transportationquality throughincreasing connectivity, accessibility, and mobility of their people in NationalPriorityAreas(industrialzones,specialeconomiczones,NationalStrategicTourismAreas, debottlenecking areas, underdeveloped regions, border regions) that isintegratedinthenationaltransportationsystem(transportationnodesandnationallogisticroute),aswellas increasing thewelfaredevelopment inPapuaandWestPapua.

4. Buildindustrialinfrastructureasoneofthebasistoachievethetargetedeconomicgrowthratein2015-2019NationalMedium-TermDevelopmentPlan.

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5. Buildinfrastructuretodeveloptourismfacilitiesthroughthedevelopmentoftouristattractionsandincreasingtourismamenitiesin88NationalStrategicTourismAreasand 222 National Tourism Development Areas (not including the 10 PriorityDestinationsandTorajaNationalStrategicTourismArea).

6. Buildintegratedattraction,amenity,andaccessibilityinfrastructureinnationally-prioritizedtourismareas.

7. Enhance the competitiveness of higher education through strengthening thecapacity of higher-education institutions as centers of science and technologydevelopmentaswellasboostersfortheimplementationoftechnologyinnovationinvariousareasofdevelopment.

4.2.8 Goal11.SustainableCitiesandCommunities

The discussion of Goal 11 in Indonesia is focused in making cities and humansettlements inclusive, safe, resilient and sustainable, with indicator proportion ofhouseholdswithaccesstoadequateandaffordablehousing.

A. TrendAnalysisa. AccesstoAdequateHousing

Proportion of households with access to adequate housing has improved from34.24%in2015to38.30%in2018.Theachievementwasmarkedbyanimprovementinfour components of the house adequacy assessment, namely: size of house, housedurability,accesstowaterandaccesstoadequatesanitation.

Figure130.Theproportionofhouseholdslivinginadequatehousingin2015-2018.

Source:StastisticIndonesia

B. Challenges

Thechallengesfacedinthedevelopmentofsustainablecitiesandcommunitiesare(1)provisionofadequateandaffordablehousing,especiallyforlow-incomegroups;(2)infrastructureandbasicservicesforsettlementsthatareofteninadequate,thustriggeringthe expansion of slums; (3) provision of land for housing, especially for low-incomegroupsinurbanareas;and(4)limitationinfinancinghousingforlow-incomegroups;(5)

34.24

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inadequateinter-andintra-cityconnectivity;and(6)subprimeeffortstoprovideopengreenspace/publicspaceinurbanareashavenotbeenoptimaltomeet30%ofthetotalarea.

C. TheWayForward

Improving access to adequate and affordable housing, especially for low-incomegroups by several strategies, include: (1) Facilitate the provision of adequate andaffordablehousing;(2)Facilitatetheimprovementofhousingquality;(3)Facilitatethefinancing for low-income groups housing; and (4) Facilitate the housing qualityimprovementinordertoobtainacitywithoutslums.

4.2.9 Goal12.ResponsibleConsumptionandProduction

The discussion of Goal 12 in Indonesia is focused on the implementation ofsustainable consumption andproductionpatterns in Indonesia,which ismeasuredbyseveral indicators, such as: (1) the number of “Proper” participants who achieve aminimumbluerank;and(2)thenumberofcompaniesthatapplySNIcertificationofISO14001.

A. TrendAndAnalysis

a) ProperProgram

Thecompanyperformanceratingprogram(Proper)isaprogramtoassessthelevelof company’s role in environmental management. There are five Proper categories,namelyGold,Green,Blue,RedandBlack,whichare inorderofcompanyperformancefromthebest/consistent to the lowest.During theperiodof2002-2016 therewas animprovement of the proportion of companies that are contributed positively toenvironment, from 60% (2002-2003) to 85% (2015-2016). In the 2015-2016 periodtherewere12companieswiththetitleofGold,172Green,1,422Blue,284Red,whileonly3companiesreceivedtheBlackcategory.

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Figure131.ThenumberandlevelofcomplianceofcompaniesthatfollowtheProper,

Year2002-2016.Source:MinistryEnvironmentandForestry

b) ApplicationofSNIISO14001Certification

SNI ISO 14001 is an internationally agreed specification in implementingrequirementsforenvironmentalmanagementsystems.Duringtheperiodof2010-2017thenumberof companies in Indonesiawhohave received ISO14001certificationhasincreasedfrom1,028(2010)to2,197companies(2017).

Figure132.NumberofcompaniesthatapplySNIISO14001certificationin2010-2017

(source:https://isotc.iso.org/livelink/)

B. Challenges

The challenges faced in developing sustainable production and consumptionpatterns are (1) the need for intervention of operational policies regarding theimplementationofthesustainableconsumptionandproduction(SCP)principlesinthebusiness cycles and processes of government, private sector and society, in acomprehensive manner including in terms of funding; (2) the need to eliminate thenegative relations between economic growth, which often drains the quality of

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environment and natural resource reserves; (3) the need to implement sustainableproductionand consumptionpatterns to replaceunsustainabledevelopmentpractices(decoupling)intosustainabledevelopment.

C. TheWayForward

Supportinginnovativeapproachesandsolutions,includespolicyinnovation,stakeholder colaboration, on the ground operational change of practices, through: (1)Increasing driver of responsible consumption and production by creating demandthroughgreenpublicprocumentpolicyforcentralandlocalgovernmentstartat2019andeducating sustainable lifestyle for communities in public facilities; (2) DevelopingIndonesia SCP resource poll as good practice sharing platform for stakeholdercollaboration;(3)StrengtheningSCPcommunicationtopublicinimprovingcommunitiesofpractices.

4.2.10 Goal14.LifeBelowWater

ThediscussionofGoal14isfocusedontheconservationandsustainableuseoftheoceans, seasandmarine resources for sustainabledevelopment in Indonesia,which ismeasuredby:(1)increasingthevastnumberofmarineconservationareas;and(2)thesustainableestablishmentof11fisheriesmanagementareas(WPP).

A. TrendAnalysis

a. MarineProtectedArea(MPA)anditsSustainableUse

Duringtheperiodof2015-2018,therewasanincreaseinmarineprotectedareasevery year. Marine protected areas increased from 17.30 million ha (2015) to 19.30million ha (2018). This consistent increase shows that Indonesia is optimistic aboutachievingthetargetof20millionhaofmarineprotectedareaby2019.

Figure133.Marineprotectedareas,Year2015-2018Source:MinistryofMarineAffairsandFisheries

b. FisheriesManagementAreas

In the effort to encourage the use and management of sustainable fisheriesresources, Indonesiahasdivided fisheriesmanagement into11FisheriesManagement

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Areas(WPP),whicharestipulatedintheMinisterforMarineAffairsandFisheriesDecreeNo.18Year2014.Moreover,theFisheriesManagementPlan(RPP)forallWPPhasbeendeterminedthroughtheMinisterialDecreeofMarineandFisheriesAffairs8

Figure134.MapofpotentialfisheriesinFisheriesManagementAreas(WPP).

Source:MinistryofMarineAffairsandFisheries

B. Challenges

The challenges of ensuring the realization of sustainable fisheries managementmodels include:(1)theright,effective,andefficientstructureaswellasmechanismofWPPgovernancetoachievegoodfisheriesmanagement;(2)inclusiveinvolvementofallfisheriesactorsinutilizingthefisheriespotentiallegallyandinareportedandregulatedmanner;(3)capacitybuildingandoperationalcapacityaswellasstrengtheningoffishersinstitutionally;and(4)draftingappropriateregulationsfortheuseoffundsandtechnicalassistanceforsmall-scalefishermenandthemanagementofcaptureareas.

C. TheWayForward

Increasingcommunityresiliencetocoastalandmarinedisastersaswellas inter-regionalandinternationalcooperationinmarineconservation,through:(1)managementof marine services in the context of economic development; (2) revitalization oftraditionalandlocalcommunitiesonsmallislands;(3)expansionofthescopeofmarinecooperation at regional and global levels; and (4) strengthening cooperation in inter-regionalseamanagement.

8(MinisterialDecreeofMarineandFisheriesAffairs:No.75/2016(WPP571),No.76/2016(WPP572),No.77/2016(WPP573),No.78/2016(WPP711),No.79/2016(WPP712),No.80/2016(WPP713),No.81/2016(WPP714),No.82/2016(WPP715),No.83/2016(WPP716),No.84/2016(WPP717),danNo.54/2014(WPP718).

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4.2.11 Goal15.LifeonLand

AchievementofGoals15isfocusedontheproportionofforestcovertothetotallandarea.

A. TrendAnalysis

a. ForestandLandCover

Duringtheperiodof2011-2017,Indonesia'sforestandlandcoverareaexperienceddecline. Nationally, the proportion of forest and land cover decreased from 52.22%(2011)to50.18%(2017).Thisisattributedtovariousfactors,bothhumanactivitiesandnaturaldisasterswhichexertpressureontheareaofforestandlandcoverinIndonesia.

Figure135.Proportionofforestandlandcoverin2011-2017

Source:MinistryofEnvironmentandForestry

B. Challenges

Environmental damage, especially in terrestrial ecosystems was caused by theexistenceoflegalviolationsinthenaturalresourcessectorandtheenvironment,suchasillegallogging,forestandlandfires,illegalmining,andnon-proceduralforestexploitation.Inaddition,theshrinkingoftheidealhabitatforendangeredspeciesonfourmajorislands(Sumatra, Java, Kalimantan and Sulawesi) was driven by an increase in the area ofmonoculture plantations which increasingly suppress forest cover and can result inincreasedbiodiversitylossifnotimmediatelyaddressed.

C. TheWayForward

Increasedconservation,aswellaspreservationandutilizationofbiodiversity,arecarried out through: (1) increasing conservation of forest resources and forestgovernance;(2)preservationanddevelopmentoftheuseofthebiodiversityeconomy;and (3) increasing the protection and security of forest ecosystems, biodiversity, andgeneticresources.

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CHAPTER5 MEANSOFIMPLEMENTATION

Inthemiddleofdynamicglobalanddomesticchallenges,Indonesiahasshownitsprogresstoachievethepost-2015agenda’stargets.Thisiscertainlynotrootedinasinglefactornoractor,butaninterdependentpolicymixdesignedandimplementedbyvariousstakeholdersatdifferentlevelsandspaces.TheintegrationoftheSDGsintothenationalandsubnationalpolicyagendahasmade theSDGsplantedandrooted indevelopmenttechnocracyprocessesandpractices.Thefollowingdescribesthepolicymix,startedfromaconciseexplanationofnationalpolicyumbrellaandfollowedbyasetofselectedsectorpolicies.

5.1 GeneralPolicyUmbrella

Thepost-2015agendaisnotsolitaryandseparatelyimplemented,buthandinhandwith the national development policy agenda. The implementation of nationaldevelopmentagenda,therefore,isalsotheimplementationofSDGs;andinitssubstance,theachievementofSDGstargetsismirroredintheachievementofnationaldevelopmenttargets,andtheotherwayaround.

The Presidential Regulation (PR) No. 2 Year 2015 on RPJMN 2015-2019 clearlyshowsthisconnection.TheRPJMNcontainstheSDGssubstances,andthetwodocumentsare harmonically corresponded in their essence. The correspondence is strengthenedevenmorewhentheRPJMNiselaboratedintothegovernmentannualplans(RKPs)asindicatedby(a)PRNo.60Year2015forthe2016RKPunderthemainthemeof“PhysicalInfrastructureastheFoundationforGoodDevelopmentQuality”,(b)PRNo.45Year2016for the 2017 RKP (“Physical Infrastructure for Employment Generation, PovertyAlleviation,andInequalityReduction”),and(c)PRNo.79year2017forthe2018RKP(“InvestmentandPhysical Infrastructure forGrowthandEquality”).Thecurrent2019RKP(PRNo.72Year2018)takesevenmoreobviousinterconnectedtheme,“EqualityforGoodQualityofGrowth”.

Thecorrespondencedoesnotstophere,asaspecialPR—namelyPRNo.59Year2017 on “Implementation of SDGs”—was released to echo the correspondence of theRPJMN,theRKPs,andtheSDGs.ThisPRspecificallyinstructsthegovernmentnotonlytoalign the SDGs and the coming long-term national development plan (‘RencanaPembangunanJangkaPanjangNasional’,RPJPN)andRPJMNbutalso,todesigntheSDGsRoadmap2017-2030,followedbytheNationalActionPlan(RencanaAksiNasional,RAN)2017-2019, and a series Subnational Action Plans (Rencana Aksi Daerah, RAD). ThetechnocraticprocessoftheseplansisfurtherguidedbytheMinisterRegulation(MR)ofBappenas No. 7 Year 2018 on “Coordinating, Planning, Monitoring, Evaluating, andReportingSDGsImplementation”.

Clearly,thestrongnexushasbeenset,bydesign,evensincetheearlystagesofSDGsinitiative.Thisunitesallstakeholdersatdifferentlevelsandspacestotaketheirpertinentandcompatibleparts—notonlythelineministries,nationalandsubnationalgovernmentinstitutions,aswellasstateauxiliarybodies,butalsoprivatecorporates,philanthropies,

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academia,andcivilsocietyorganizations.Onthislandscape,as‘nooneisleftbehind’,thecountry’sSDGshavebecome‘everybody’sbusiness’.

5.2 TheMeansofImplementation

The means of SDGs implementation are reported in an interrelated structure.FollowingthesectionofMethodology,atthetopofthisstructureGoal10issetastheendof intention. This is supported by Goals 4, 8, and 13 as the underlying determinants,assumedtoaffecttheintention.Meanwhile,Goals16and17buttressthose-mentionedgoalsastheenablingenvironment.Sincethegoalsaresetinaninterrelatedstructure,onegoalbearsuponanotherconjointly.

AsreportedintheprevioussectionsofthisVNR,Indonesiahasbeenabletoreduceinequality.Albeittheinequality,measuredbyGiniratio,isstillatthemoderatelevelanditsreductioniscomparablysmall,thedecliningtrendinthelastfouryearsisobvious.Asetoffactorsexplainstheprogress.

PolicyCoherence

a. SocialInclusion

Inthepast,theradarofpolicydiscoursesdidnotcapturewelltwoneglected,sociallyexcluded,groups—disabledcommunityandwomengroup—intopolicyalert.Inthepast,policy formulation was irresponsive to these groups. Nowadays, however, policyattentionhasshiftedtothesegroups.LawNo.8Year2016onDisabilityhadbeensignedbythepresidenttosubstitutetheformerone,LawNo.4Year1997.Thenewlawistheback-boneof thegroup tobemore involved invarious social-economicactivitiesas itshiftstheviewfromcharity-basedperspectivetorights-basedparticipation.

In themeantime, consciousness isalso raising that themost importantdisabilityissuesarenotaboutthephysical,biological,andpsychologicalconstraintsofthedisabledcommunity, but the unfavorable socio-economic environment around the community.Therefore,theadvocacyagendaneedstobedirectedtocreateafavorablesocio-economicenvironmentforthecommunity.Forthispurpose,thelawalsoinstructsthegovernmenttoestablishanationalcommitteefordisability,calledNationalCommitteeforDisability(‘KomiteNasionalDisabilitas’,KND),tomonitortheimplementationofthelaw,wherethedeadline for the committee formation is the year 2019 at last. At the same time, thedisability issueshavealsobeencaptured in theNationalActionPlanofHumanRights(2015-2019)duetoPRNo.33Year2018replacingPRNo.75Year2015.Themasterplanofinclusivedevelopmentfordisabledcommunityisalsocurrentlybeingdeliberatedatvarious fora. In linewith this, it isalso important tonote that in theyearof2018 thegovernmenthadofficiallyopenedforthefirsttimeanopportunityforthisgrouptofollowtheselectioninthegovernmentofficerprocessofrecruitment,assomepostshadbeenmadeavailable.

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Box42.TowardsMoreEmpoweredLife:ALearningExperiencefromOHANA

Association

Peoplewithdisabilitiesareoftenregardedasunproductiveanddependent,butthroughvariousprogramsconductedbyOHANAAssociation,peoplewithdisabilitieshavebetterhopes,alongwiththeimplementationofcapacitybuildingandpolicyadvocacyprograms.

TheOHANAAssociationislocatedintheSpecialRegionofYogyakarta(DIY).ItworksonregionalandinternationalcooperationonDisabledPersonOrganizationsinIndonesiaandworkswithnon-profitorganizationsindisabilitysuchasGlobalMobilityfromUSAandHopeHaven Guatemala. OHANA Association carries out collaboration in the fields of promotion,innovation,technologyeducation.Italsohasanadvocacyprograminthefieldofuser-friendlymobilityaidsthroughtheSeatingClinicprogramandTrainingofWheelchairsMachineShopinIndonesia.OHANAAssociationreceivedsupportfromtheGermanEmbassyinIndonesiatothetune of IDR 350,000,000.00 (± USD 25,000) to implement the Seating Clinic program andTrainingofWheelchairsMachineShopinVietnam.

This partnership is aimed at increasing the welfare of people with disabilities byprovidingtechnicalassistancetoestablishwheelchairmachineshops.Thegoalsofthisprogramare as follows: (1) to enable peoplewith disabilities to establishwheelchairmachine shopoutletsinDIYandCentralJava(2)toempowerpeoplewithdisabilitiessotheycouldcarryoutactivitiesbothinsideandoutsidethehomewithmobilityaidsaccordingtotheneeds,and(3)enabletransferof technology inanyactivitiesrelatedtotheuse,maintenance,andrepairofmobilityaids.ThecollaborationalsoopensupnewopportunitiesforcooperationwithASEANcountries, which could increase diplomatic cooperation and the welfare of people withdisabilities.

(Source:OHANAAssociation)

On gender equality, the view has also changed. It is no longer about womanemancipation, but two folds. First, gender equality–equal rights, opportunities andresponsibilities—isabouthumanrightsandsocialjustice;second,bettergenderequalitymattersforsustainable,people-centered,development.Gender-responsivebudgetingisagood illustration for this view. It has a long root of journey, started fromPresidentialInstructionNo.9Year2000onGenderMainstreamingStrategy,capturedinPRNo.2Year2015 on RPJMN 2015-2019, and instructed in Minister of Finance Regulation94/PMK.02/2017.Thelast-mentionedregulationrelatestogender-responsivebudgetingthatneedstobeincludedintheannualbudgetoflineministries.Betweentheseyearsofissuance of the regulations, there is also another regulation issued by theMinistry ofHome Affairs on the implementation of gender-responsive budgeting at sub-nationallevel.Ontopoftheseregulations,theRPJPN2005-2025hasdocumentedasetofpolicydirectionsonwomenempowerment,namely(1)toimproveofthequalityoflifeandtheroleofwomeninvariousdevelopmentsectors;(2)todecreasethenumberofviolence,exploitationanddiscriminationofwomen;and(3)tostrengtheninstitutionalizationandnetworkofgendermainstreaming.

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Issuesonsocialinclusioncanalsobeextendedtoothermarginalgroups,especiallytotheiraccessestosocio-economicresources.Thereareabignumberoffarmerswithnoaccess to land; and there are twoparallel programs to dealwith the issue. First, landcertificationunderagrarianreformprogram;and,second,socialforestryprogram.TheformerisgovernedbytheNationalLandAgency(BadanPertanahanNasional,BPN),whilethelaterbytheMinistryofForestryandEnvironment(KementerianLingkunganHidupdanKehutanan, KLHK). TheAgency has handed over about 40percent of 126millionpiecesoflandcertificatetodistributeduring2017-2019.Atthesametime,theministryhasreleasedahugehectareoflandtobedistributedtothefarmersundersocialforestryprogram.Knowingtheimportanceoflandforthefarmers,thePresidenthimselfareveryactiveinimplementingtheagrarianreformandsocialforestryprograms.

While farmerswithno landnowhaveaccess to land,otherpoorgroupsarealsotargetedtohaveaccesstoaprogramcalled ‘FamilyHopeProgram’(ProgramKeluargaHarapan,PKH),governedbytheMinistryofSocialAffairs.Underthisprogram,eachpoorfamilyreceivesRp1.89million(US$137.40)worthinassistanceeveryyearsince2015.Themoneyisdistributedinfourphasesperyear,thatisRp500,000eachinFebruary,MayandAugust,andRp390,000inNovember.Thefinancialassistanceistransferredtothefamilies’bankaccountsbymembersofthe‘AssociationofState-OwnedBanks’(HimpunanBankNegara,Himbara),whichincludesBankRakyatIndonesia(BRI),BankMandiri,BankNegaraIndonesia(BNI)andBankTabunganNegara(BTN).

b. EconomicPolicies

Economic policies—macro andmicro—are responsible for the progress of SDGsachievementasthepoliciesprovideafavorableenvironmentforeconomicactorstodocommercialbusinesses.Albeit externalpressuresarealmostexogenous to the spanofpolicy control, sound macroeconomic policies—prudent monetary and fiscalmanagement—have been quite successfully formulated and implemented to make astableecosystemfortheeconomytowork.Thereisnodoubtthatexternalpressureshaveserious direct and indirect impacts on the country economy; therefore, a harmonizedcombinationofmonetaryandfiscalpoliciesisalwaysneeded;and,even,hasbecomeastandardintegratedmacroeconomicmanagementofthecountry.

From the monetary side, the central bank has successfully kept the domesticeconomytoadjustwithexternaldynamicsby formulatingBI7-dayReverseRepoRate(BI7DRR), deposit facility, and lending facility at the controlled acceptable rates—subsequently 5-6%, 4-5%, and 6-7%—along with close-monitoring of the country’sbalanceofpayment.Thepolicyhasbecomeanindustrystandardinmonetaryarenatoattract domestic financialmarket, to respond to the deficit of current account, and toadjustwiththerecentandcomingglobalinterestrates.Suchamacropolicy,byandlarge,protectsthewelfareleveloflow-quantileeconomicpopulationtosufferfromtransmittedprice pressures. The impacts are obvious. Inflation rates during 2017-2018 wererelativelystableataroundthreepercent.Theratesareconsideredthelowestinthelast15years.Therateswerefavorablefortheimplementationofanti-povertyprograms,asevidencedthroughthedecliningpovertyratesfromabout11%in2014-2015to10%in2016-2017; even, for the first time of the country’s development history, in 2018 thepovertyratereachedasingledigitofninepercent.

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Fromthefiscalside,apartfromremarkableincreaseinthegovernmentspendingonphysical infrastructure to speed-up the development of ‘outer island’ of Java, anotherportionofgovernmentexpenditurehasbeendesignedtoboostdomesticconsumptionand provide safety nets for the left-behind groups. The total budget allocated to theconstruction of various infrastructure projects has increases at about 17% per yearduring2015-2018, fromRp256trillion(2015)toRp410trillion(2018).Thisamountincludesthebudgetchanneledthroughsub-nationalgovernmentsastheimplementationoffiscaldecentralization,namelySpecialAllocationFund(‘DanaAlokasiKhusus’,DAK)oninfrastructure, Village Fund (‘Dana Desa’) on infrastructure, and General Transfer(‘Transfer Umum’) on infrastructure. There are still another series of special budgetallocatedtothreespecialprovinces,namelyAceh,Papua,andWestPapua,throughtheso-called‘DanaTambahanInfrastruktur’(AdditionalFundforInfrastructureDevelopment),withan increasingtrend. In2015,AcehprovincesreceivedaboutRp2.1trillion,whilePapua and West Papua provinces received, consecutively, Rp 7.1 trillion and Rp 4.9trillion.In2018,theDanaTambahanInfrastrukturforthreeprovincesincreasedtoRp2.4trillion,Rp8.0trillionandRp5.6trillion,respectivelyforAceh,Papua,andWestPapuaprovinces.

Atthemicroeconomiclevel,alongseriesofeconomicpolicypackageshasresultedin positive effects on the good and service markets. At almost every quarter thegovernmentreleasesthepolicypackagessincetheyearof2015.Nownot lessthan16economic policy packages have been released covering a hugenumber of activities atmicro-economic level. The packages promote industrial competitiveness, businessclimate,lawenforcement,investmentattraction,interestrates,etc.Thepackagesincludealso policies directly addressing equality issues. It is a special credit scheme for SME,calledKreditUsahaRakyat(KUR).Inthepasttime,thecreditwasreleasedwithaninterestrateof22%.NowthepolicysignificantlyreducestheinterestcreditrateforSMEstoonly12%. The KUR also expands the beneficiaries. It is no longer exclusively directed tosupport SMEs, but also designed to benefit Indonesia’s migrant workers under threecategories:thosewhoaregoingtoworkabroad,thosewhoreturnhome,andtheworker’sfamilies. Furthermore, there is also another policy attention to SMEs. Not only is toprovideaccesstofinancialmarket,thepolicyattentiontoSMEsalsomorestrengthenedbyanewGovernmentRegulation(GR)No.23Year2018replacingGRNo.46Year2013.ThenewGRstipulatesthatthetaxratetoSMEsisreducedfrom1%to0.5%ofthetotalsales.

Theprogressdoesnotendhere.Thepolicypackagesareaddedsubsequentlybyanother policy in labor market, especially on the minimum wage. The proposal ofminimumwageformulahadbeenveryslowlydeliberatedandhadtakenabout12yearswith no significant progress. Through the economic policy packages, now the currentgovernmentsetstheminimumwagetobefair,simple,andpredictable,usingaformulataking the rates of regional inflation and economic growth into consideration. Theprovincialgovernorsaretaskedwithsignificantresponsibilitiestoregularlymonitorandadjusttheminimumwagewiththebasiccostoflivinginadefiniteschedule.

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Partnership

a. InnovativeFinancing

Indonesiahasdevelopedawiderangeofnon-traditionalmechanismstomobilizefundsfordevelopment,commonlyknownasinnovativefinancing(IF).FortherelativelybigscaleofIF,someinitiativeshavebeencreated;amongothers,theyincludetheNon-State Budget Investment Financing (‘Pembiayaan Investasi Non-Anggaran Pemerintah’,PINA)andtheGovernmentCooperationwithBusinessEntity(‘KerjaSamaPemerintahdanBadanUsaha,KPBU).ThePINAisaschemeforinfrastructurefinancingfocusingonprojects yielding Internal Rate Return (IRR) above 13%. Under the PINA Centermanagementthatwasestablishedinthebeginningof2017,theschemeisdirectedtonotonlynarrowgap financing,butalso is todevelopa setofvaluablecooperationamonginvestors and investees from domestic and international markets. Utilizing severalfinancial instruments of PINA—pension fund, insurance, state wealth, and strategicinvestment company—Indonesia had facilitated a series of collaborations amonginvestorsandinvesteestofinancevariousprojectssuchastollroad,airport,renewableenergy, and others with a total of investment about USD 2,3 billion. The PINA alsocontributedtopipeliningon33projectssuchasplantation,aviation,tourism,andotherswithaninvestmentofUSD39billion.

The KPBU is another type of infrastructure financing, where the projects arespecifiedtoincludethelineministries,state-ownedenterprises,andlocalgovernments.Untilnow,thereare19projectsunderKPBUscheme.Atthesametime,toenhancethegovernment guarantee and to attract investors, the government established a joined-office of KPBU as one-stop service and became a coordination forum among thestakeholdersofKPBUwhichhassevenmembersoflineministries.Todate,13projectswithvalueaboutUSD8.9billionhadbeenfundedthroughthesolicitedscheme.These13projectsarethepartofNationalStrategicProjects(‘ProyekStrategisNasional’,PSN)thatincludeconstructionoftollroad,energy,telecommunication,andwaterprovision.OneofthesuccessfulstoriesisDrinkingWaterProvisionSystem(‘SistemPenyediaanAirMinum’,SPAM)inUmbulan,EastJava.

Asmentionedabove,PINAandKPBUarebasicallytwocollaborativeprojectsamongvariousconcerned-stakeholders.OneofthestakeholdersisPTSaranaMultiInfrastruktur(SMI)takingapartintotheseprojectsunderaplatformcalled‘SDGIndonesiaOne’.PTSMI is a state-owned enterprise (SOE) mandated to accelerate infrastructuredevelopment and to support the implementation of Public Private Partnership (PPP)schemes. Themandatehas two focuses, namely (1) optimizationof the economic andsocialbenefitsforthecommunities;and(2)supportfortheachievementofSDGsaswellasmitigationoftheclimatechanges.PTSMIisaspecialmissionvehicleoftheMinistryofFinance to generate new sources of development financing. The ‘SDG Indonesia One’integratespublicandprivate funds throughblended financeschemes;channeledthemintoSDGs-relatedinvestmentprojects.

Oneexample to illustrate isgreenbond that refers to the regulationofPOJKNo.51/POJK.03/2017 on the Implementation of Green Financing for Financial Institution,EmittedandPublicCompanyandPOJKNo.60/POJK.04/2017onGreenBondissuedbytheFinancialServiceAuthority(‘OtoritasJasaKeuangan’,OJK)Indonesia.Intheyearof2018,PTSMIhasissuedthefirstgreenbondinIndonesia,called‘SustainableGreenBond

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IofSMI’.Thisistoaccompanyanotherbondissuedpreviously,called‘SustainableSukukBondIofSMI’’—anIslamicshari’afinancinginmoneymarket.TogetherwithIslamic-typeof contribution called zakat and wakaf, the green bond and sukuk have formed aninnovative finance lab for the country SDGs. Meanwhile, the Center for SustainableFinance Knowledge-LPPI has delivered sustainable finance materials in “nationalcompulsarytraining”ofbankofficialsandotherrelatedinstitutions.

Furthermore, in theGlobalProgressReportof theSustainableBankingNetwork,Indonesiaisconsideredasoneamongeightcountriesthathasreachedanadvancedstagein having implemented large-scale reforms and put in place systems for resultsmeasurement in sustainable finance. The report positively underscores Indonesia'sFinancialServicesAuthority(OJK)'scomprehensiveSustainableFinanceRoadmap,whichincludes19mediumandlong-termactivitiestobeconductedbetween2015and2024ofallfinancialservicesinsitutionstoimplementsustainablefinance.

AsthemostgenerouscountryaccordingCAFWorldGivingIndex,theeffortsdonotstop here. For example in July 2018, a special book explaining fikih zakat on SDGs(literally,legalbasisforcontributiontoSDGsforMuslim)wasreleasedtothepublic.ThisguidelinewasinitiatedbytheNationalAmilZakatAgency(BAZNAS)incollaborationwithBaznas, IndonesianUlamaMajlis, Indonesian Philanthropy, Islamic StateUniversity ofSyarif Hidayatullah, supported by the Ministry of National Development Planning ofBappenasandtheMinistryofReligiousAffairs.Thisguidelineisconsideredasthefirstattainment in the world of Islamic financing. The implementation of this guideline isreflectedthroughablendedfinanceschemeamongtheMinistryofEnergyandMineralResources,BAZNAS,JambiBankandUNDPtobuildaMicroHydroPowerPlantinJambiProvinceinSumatera.Thismicrohydropowerplantprovideselectricitytofourremotevillagesfor803householdsandgiveimpactto4,448people.

AmongVNRreport2016and2017,Indonesiaisselectedasoneofsixbestcountriesof concreteness in SDGs investment plans, investment gaps, priority gaps, priorityprojectsandsectors.Indonesia’sinnovativefinancinginitiativeshavebroughtthecountrytobeoneofthecountriesintheglobeselectedbytheUNtojoininSDGsInvestmentFairattheUNHeadQuarterinApril2019.IndonesiapresentedsomepotentialprojectsthatcanbedonethroughcollaboratedinnovativefinancingforSDGs.

AnotherIFschemethatcanalsobeevidentlyseenise-commerce.E-commerceinthecountry isameltingpotofbulkyoungandbigdemographywitha strongmobile-orientedlifestyle,remarkablecashlesspayment,andmostimportantly—fromequalityperspective—hugeSMEsparticipation.Atthesametime,italsoattractstheeconomicallyinactivepopulationcohortto integrate intodigitaleconomythroughvariousplatformsthatdidnotoccurinthepast

E-commerce is a new increasing financial industry in the country, utilizing twointeractivefactors.Fromthedemandside,thereisaconsistentgrowingincomelevelofthe population dominated by young and technology savvy demography who rapidlyadjust themselves tonew technology.From the supply side, there is alsoanenlargingsmartphone and internet penetrationwith continuous growth. The development of e-commerce strongly reflects thedevelopment of digital economy that has considerablyliftedtheuseofcashlessmoneyforfinancialtransactionsinthecountry.Indonesiaisnowjumpingfrombranchtomobilebankingandskippingdesktopbanking.Thisdevelopment

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is not only about services to the clients but alsomobilization of resources to narrowfinancinggap,whereinturnrespondingtotheSDGs

It is interesting tonote thatBukalapak,Gojek,Tokopedia,andTravelokaare thecountry’s four astonishing unicorns in mobilizing resources and connecting marketplayers.Gojeknowevenhasexpandeditse-commercebusinesstotheEastAsiaregion—thePhilippine,Singapore,Thailand,andVietnam.Someof thesedigitalplatformshavealso been playing important as digital philanthropy for development donation. Theirunlimitedmarkethascreatedborderlessuniverseevenfordonationandcontributingtodevelopment.

ItisalsoimportanttonoteherethattheseunicornshavebroughtahugeamountofSME togetonline.Thesee-commercebusinesseshavenotonlyopened,but alsohaveproventolift-upawiderrangeofSMEsintegrationinvariousmarketplacesandvaluechains—driving the inclusive growth aswell as helping SMEs gain access to financialservices through online and mobile payments. It also evident that e-commerce hassupportedproductiveactivities,entrepreneurship,anddecentjobs.

b. ClimateAction

Climateactionhasbeeninthepolicydiscoursesforaquitelongtime.ItstartedfromPRNo.61Year2011onGreenhouseGasActionPlanandPRNo.71Year2011onGHGEmission, where special emphasis was given to climate mitigation; to the Bappenas’National Action Plan on Climate Adaptation (2014) on climate adaptation. Under theumbrellaofLawNo.32Year2009onEnvironmentalProtectionandManagement,climateaction is further translated into Government Regulation (GR) No. 46 Year 2016 onStrategicEnvironmentalAssessment(SEA).

AfurtheractionhadalsobeenmadeatthesubnationallevelastheMinisterofHomeAffairs issued MR No. 7 Year 2018 on Implementation of SEA. The MR instructs thesubnationalgovernmentstoincorporateSEAintheirRPJMD.ThisistofollowthepreviousregulationsissuedbytheMinisterofEnvironmentNo.9Year2011andtheMinisterofHomeAffairsissuedMRNo.67Year2012thatinstructthesub-nationalgovernmentstoincorporateSEAintheirspatialplanofRTRW(RencanaTataRuangWilayah).AseriesofstakeholderconsultationshasbeenmadebythesubnationalgovernmentstorespondtoMRNo.7Year2018.TheresultsofconsultationswillbedocumentedintheSubnationalMediumDevelopmentPlans(RPJMD)2018-2023or2019-2024.

The implementationofSEA isnotseparated fromanaccompanyingactioncalled‘LowCarbonDevelopmentInitiatives’(LCDI).Forthefirsttimeinthecountry’shistory,lowcarbonisseriouslytakenintoaccount.Workingwiththesubnationalgovernments,twopilotprojectsarenowbeingimplementedtoserveLCDI.First,theIndonesiaClimateChangeTrustFund(ICCTF)projectinCentralJava.Theprojectcombinesclimateactionwith incomegeneration through investment inbio-digesterswhichproducebio-slurryandcompostthatcouldimprovethequalityofsoilandecosystem.Second,thesigningofsustainable province commitment by the West Papua provincial government onInternational Conference on Biodiversity, Ecotourism and Creative Economy held inManokwari,WestPapua(2018).ThecommitmentwasverymuchinthespiritoftheLCDIandsignifiedaveryauspiciousstarttothecountry.

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Box43.Community-BasedForestFireControl

Intheinitial3yearsofSDGsimplementation,theareacoverageofforestandlandfiresinallregionsofIndonesiahasdecreased.BasedonLandsatsatelliteimages, in2015firesreached2,611,411haofforestandland,consistingof891,275hapeatlandand1,720,136hamineralland.Furthermore,in2018firesreached510,564haofforestandlandconsistingof125,340hapeatlandand385,224hamineralland.

The number of hotspots in Indonesia has also decreased. Based on observations fromTerra/Aqua(NASA)satellitesin2015therewere70,971hotspotwhilein2018only9,245hotspot.

ThepreventionoffireshashelpedreducetheextentofforestfiresandCO2emissionsintotheatmosphere.Thebestwaytocontrolforestfiresistopreventfiresdirectlyatthesource.Effortsweremadewithintegratedpatrolswithrelevantstakeholders,includingthecommunity.Thefemaleinthelocalcommunityisalsoactivelyinvolvedinactivitiesonforestfirecontrol.

The number of targeted villages continues to be increased to ensure more accurate earlydetection, rapid response and increased awareness. In 2018, the distribution of integratedpatrolsreached72districts,349sub-districts,1255villagesin8provincespronetoforestfiresinIndonesia.Targetedvillagesareselectedthroughthelevelofvulnerabilityinwhichthedatais closely monitored through satellite images. Patrol is conducted at specific times, inaccordancewithanalysisbytheMeteorologyandGeophysicsAgency.

In parallel, the capacity of the community is also strengthened by encouraging landmanagementwithoutburningandpreventiveeffortsbymaintainingwaterlevelsthroughpeatrestoration.

(Source:MinistryofEnvironmentandForestry)

Forestfirecontrolonthefieldandbyhelicopter

WomeninforestfiresuppressionCheckingthecoordinatesofhotspotsinthefield

v

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c. DataCooperation

Indonesiaacknowledgesthatdataisveryimportantfordevelopment.InIndonesiaofficial data is provided by the ‘Statistics Indonesia’ (Badan Pusat Statistik, BPS). TosupportSDGs,theBPShasplayeditsroles,bypreparinganddevelopingtheindicatorsrelevanttothecountryandcomparabletotheglobalmeasures.Throughaseriesofdataconsultationsandpublications,therolesarealsoexpanded;notonlytosupportnationalgovernment,butalsosubnationalgovernments.Priortothesesupports,theBPShadalsobeenactiveinanumberofinternationalstatisticalsessions.Amongothers,in2017undertheFrameworkfortheDevelopmentofEnvironmentStatistics(FDES)aserialsessionhadbeenmade inpreparation forpilotecosystem,energy,material flows, land, andwateraccountsasapartofUNSystemSDGsActionDatabase.

Alongwiththe15year-implementationofSDGs(2015-2030),Indonesiawillhavetwo important events, namely population censuses 2020 and 2030 under theresponsibilityofBPS.Thecomingcensuseswillbedifferent fromthepreviousonesasdigital technology has remarkably grown affecting the ways of the data collection.Knowledge has been accumulated and learned from the previous censuses, includingsurveys,thusBPScapacitynowismuchhigher.

In2018theBPSandtheAustralianBureauofStatistics(ABS)hadsignedamilestonefor five-year agreement on a closer co-operation between the two national statisticalagencies.ThenewMoUfocusesnotonlyoneconomicstatistics,butalsosocialstatistics,human resources as a part of the bureaucracy reform process at the BPS, and thepreparation of the 2020 Population Census, as well as IT transformation. The BPS’spositionhasnowchanged.TheBPSisnolongerastherecipientoftechnicalassistancefromtheABSlikeinthepast,buttobeabletoequallycooperate.

TheBPSalsocollaborativelyworkedwiththeUNICEFandBappenastosupporttheirwork indevelopingSDGsBaselineDataonChildren.Theworkwaspublished in2017,underatitle ‘LaporanBaselineSDGtentangAnak-AnakdiIndonesia’(literally, ‘BaselineSDGsReportinIndonesia’sChildren).In2015,workingalsocollaborativelywithUNICEF,BPSpublishedananalysisonchildmarriage.Titled ‘KemajuanyangTertunda:AnalisisDataPerkawinanUsiaAnakdiIndonesia’(‘DelayedProgress:AnalysisonChildMarriageData in Indonesia), the analysiswasmade on basis of the 2008-2012National Socio-EconomicSurvey’(SurveySosial-EkonomiNasional,SUSENAS)andthe‘2010PopulationCensus(SensusPenduduk,SP).

Intheyearof2017,asimilarsupportwasalsogiventoUNFPA,Bappenas,andtheMinistryofYouthandSportAffairstoresultin‘IndeksPembangunanPemudaIndonesia’(literally, ‘Indonesia’s Youth Development Index’). Also, with UNFPA, the BPS is nowpreparing todo the2020PopulationCensus. In themeantime, again in2017, anotherwork had been cooperatively done between BPS and FAO on capacity building forindicator creation on Prevalence of Undernourishment (POU) and Food InsecurityExperienceScale(FIES).

BPS’commitmenttosupporttheimplementationofSDGsalsoreflectsontheeffortstoprovidedisaggregateddata,namelythroughatechnicofSmallAreaEstimation(SAE)toobtaindataatdistrictlevel,apilotstudytodevelopinstrumentforspecificsurveytoobtainSDGsdata,andeffort tochange theproxy indicators tobematchedwithglobal

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indicator.CooperationwithIHME(InternationalforHealthMonitoringandEvaluation)and University of Washington for measuring the indicator of cause of death as theindicatorthatisstilldifficulttobeestimatedinIndonesia.

The BPS always share knowledge, experiences, and lessons learned with othercountries,especiallythedevelopingones,asapartofthecountrycommitmenttoengageinandsupport theSouth-SouthCooperation.Noticealso, theBPSreceivesstudyvisitsfromothercountries,suchasNepal,Bangladesh,Albania,andmanyothers.

CommunicationTechnology

Albeit thecountryisbigingeographicsize,‘digitalizingthearchipelago’isstilladoablemission. Asmentioned previously, the so-called ‘Palapa Ring’ project connectsabout500districts and cities througha gigantic broadbandnetwork andoffers fastercommunicationservicesthroughoutthecountry.The‘PalapaRing’unitesthearchipelagothroughSubmarineCableCommunicationSystem(SistemKomunikasiKabelLaut’,SKKL)andOpticalFiberCommunicationSystem(SistemKomunikasiSeratOptik,SKSO).Twoofthree regions in the country—the west and the central wings—have already beenconnectedbytheendof2018,whiletheeastwingnowisabout96%achievementfromthe target. ‘Palapa Ring’ also answers the challenge of digital gap in the hinterlandjurisdictionsinthecountry,characterizedbythe‘3Ts’-Terdepan,Terluar,andTertinggal(borderlinefrontier,outermost,underdeveloped)regions.Forthispurpose,theuniversaltelecommunicationandinternetaccessprogramhasbeendesignedforruralpopulations.Theprogramprovidesaccesses to internet in schools, trainingcenters,healthcenters,village halls, government offices, including those living and situated in the ‘3T’-jurisdictions.Theexpansionofservicestothe‘3T’-jurisdictionscannotonlybeseenasanefforttonarrowdigitaldivide,butalsotobringthesejurisdictionstogetherwithotherjurisdictionstodynamicallyfollowtheeraofITC.WithanincreasingtrendofITCliteracyin the ‘3T’-jurisdictions, digital development is directed to support commercialbusinesses,socialinteractions,andpublicservices.

ThePresidentialInstruction(InstruksiPresiden,Inpres)No.9Year2015onPublicCommunicationManagementhasmadethecountryconnectivityavailablefromislandtoisland thusensures theequalityof access to information thatnarrow the challengeofdigitaldivide(i.e.,digitalgap)acrossthecountry.ThisInpressupportsGRNo.96Year2014onNationalBroadband2014 -2019, further elaborated in JoinedCircular Letter(SuratEdaranBersama,SEB)oftheMinistryofCommunicationandInformaticsandtheMinistry of Home Affairs on Joined Development and Utilization of PassiveTelecommunicationInfrastructurethatopenspossibilitiesforsub-nationalgovernmenttoinvolve.Astheprojectalsoinvolvessub-nationalgovernment,theMinisterofFinanceRegulation (Peraturan Menteri Keuangan,PMK) 129/PMK.08/2016 replacing265/PMK.08/2015 on Preparation and Implementation KPBU Infrastructure Projectfacilitatesthefinancingmechanismforthepartiesatthesub-nationalleveltojoin.

InstitutionalCapacity

ThegovernmentcommitmenttoimplementgoodgovernanceisclearlystatedintheRPJMN2015-2019. The commitment is translated into a set of agenda to build clean,effective,democratic,andtrustedgovernance,wherethespecificsub-agendaistobuildtransparencyandaccountabilityofgovernmentperformance.Thisisfurtherelaborated

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into threemainstrategies,namely(a) improvingmanagementsystemwith integrated,credible, andaccessible government institutionsperformances’ report; (b) applyinge-governmenttosupportgovernmentbusinessprocessandmodest,efficient,transparent,andintegrateddevelopment;and(c)applyingopengovernmenttosupporttherealizationof open, participatory, and accountable government in public policy making andsupervisingitsimplementation.

Goodgovernanceisbasicallynotanewvaluesinceaseriesofpolicyhaslongbeenformulatedasapartofthegovernmenttechnocraticprocessesintheareasofplanning,budgeting,andinformationdissemination.Nationalandsubnationalplansandbudgetsarenotonlyopenlyandregularlypublicizedasthegovernmentreports,butalsosincethebeginningof theplanningandbudgetingprocess, thedocuments are accessible to thepublic.More than this,on thepublicsectorbudget, theAuditBoardof theRepublicofIndonesia (Badan Pemeriksa Keuangan,BPK) also offers accessible information to thepublictoscrutinizetheresultsofthenationalandsub-nationalbudgetaudits.TheserelatetoLawNo.8Year2008onPublicInformationOpennessthathadbeenreleasedabout10yearsagoandfollowedtwoyearslaterbyGRNo.61Year2010totranslatefurtherthelawintotechnocraticprocess.

Inadditiontothis,electronicplanningandbudgetingarebeingimplementedatbothnationalandsubnationallevels.Onthelater,RegulationoftheMinistryofHomeAffairsNo.8Year2014on InformationSystemof Sub-nationalGovernance (Sistem InformasiPemerintahan Daerah, SIPD) has provided a solid foundation for e-planning and e-budgeting.Regulationone-procurementhasalsobeeninpublicsince2010throughPRNo.54Year2010,thenlaterreplacedbyPRNo.4Year2015.Later,e-procurementhasalso its legal foundationthroughPRNo.16Year2018onGovernmentProcurementofGoodsandServices.

OpenGovernmentIndonesia(OGI)isnotanewpolicyeither.Indonesiahadinvolvedin Open Government Initiative together with Brazil, England, Mexico, Norway, thePhilippines,SouthAfrica,andtheUnitedStatesofAmericain2011alongwiththelaunchofOpenGovernmentPartnership(OGP)initiative.TheinitiativehasitsrootinLawNo.14Year2008onPublicInformationDisclosure,andLawNo.25Year2009onPublicServiceDelivery.ItthencontinuestotheissuanceofPRNo.13Year2014ontheDeterminationofIndonesia’sMembershipinOpenGovernmentPartnershipasIndonesialegalbasisofitsinvolvementinthemulti-sectorpartnership.Onpubliccomplainthandlingmechanism,theLayananAspirasidanPengaduanOnlineRakyator ‘LAPOR!’ (‘Report it!’orPublic’sOnlineComplaint andAspiration Service) hasbeenofficially established as aNationalPublicServiceComplaintManagementSystem(SistemPengelolaanPengaduanPelayananPublik Nasional/SP4N) through PRNo. 76 Year 2013. This is further accompanied byregulationoftheMinistryofStateApparatusandBureaucracyReform13/2017onPublicServicesInformationSystem(SistemInformasiPelayananPublik/SIPP).

Recently,OGIhasreleasedtheactionplanonOpenGovernment2018-2020.Thisisthe fifth action plan since the country joined the OGP. Among others, the action planincludes public consultation forum initiated by the Minister of Administrative andBureaucraticReformthroughMRNo.16Year2017onGuidelinesonPublicConsultationForuminthePublicServiceUnitwhichwasalsosupportedbyCircularLetter(CL)No.56Year2017asaplatformforopinionexchangebetweenthepublicserviceadministratorsand civil society through various formsofmedia. Also, recently, to further implement

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clean, effective, democratic, and trusted governance as demanded by the RPJMN, thePresidentreleasedGRNo.54Year2018onNationalStrategyonCorruptionPrevention.TheanticorruptionmovementnowgoeshandinhandwithOGI.

Toconclude, thechallenges to implementSDGsarenot few,while therequiredresourcesarenotsmalleither.Indonesiarecognizesuchasituation,thereforeintegratingSDGsintonationaldevelopmentpolicyagendaisstrategicseenfromtwopointsofview:effectivenessofplanningandefficiencyoffinancing.Forthesereasons,thecountryhasbuiltapath-way:implementationofSDGsisalsoimplementationofnationaldevelopmentagenda—andtheotherwayaround.

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CHAPTER6 WAYFORWARD

Adheredtothe2019HPLFtheme‘EmpoweringPeopleandEnsuringInclusivenessandEquality’,developmentinIndonesiaisimplementedbyupholdingtheprincipleof‘nooneleftbehind’,toensurethattheSDGsisimplementedbyallstakeholdersandtheresultsareenjoyedbyallpeopleofIndonesia.Towardsthatend,hefollowingactionsisneededtocompletetheachievementoftheSDGs:

1. Reduceinequalitythroughpromotinginclusiveandsustainableeconomicgrowth.Inter-region disparity will be reduced by strengthen connectivity and maritimesector.Highqualityeconomicgrowthwillbeacceleratedthrough increaseaddedeconomicvaluesandemploymentcreationinvarioussectorsincluding;agriculture,smallandmediumindustries,tourismandotherproductiveservices.Indonesiahasdeveloped Inclusive Economic Growth Index, which will be the reference fornationalaswellassubnationalgovernmentindevelopingpoliciestoacceleratetheprocesstowardsprosperousIndonesians.

2. Increase quality of human capital by reducing poverty and increased access toqualitybasicservices.Ineducationsector,effortswillbemadetofocusonqualityeducationwhile increaseaccessandreducedisparity, especially for the12-yearsmandatoryandearlychildhoodeducation.

3. Adopt the low carbon development planning to achieve sustainable economicgrowth which integrate and interlink the SDG goals. Disaster Management andclimatechangeeffectsaremanagedthroughamassiveandstructuredpolicyandimplementation of Risk Management, adaptation and mitigation of the ClimateChange.

4. Continuously foster bureaucracy reforms towards accountable and transparentgovernancebyadoptinginformationtechnology,forexampleinfightingcorruption.PublicparticipationwillbereinforcedbyincreaseIndonesiaDemocracyIndexandensuring involvement ofminority and vulnerable groups in policy development,hence‘nooneleftbehind’.Reliabledisaggregateddataisthereforenecessary.

5. Ensure that SDGs in Indonesia is implemented with vibrant involvement of allstakeholders,inwhichintegrationofSDGsintonationalandlocaldevelopmentplanbeingacriticalstep.MorethanhalfoftheprovincesalreadyhavedevelopedtheirSDGsActionPlan, and thusmoving forward, the remainingprovinceswillbe thepriorityforassistance.

6. It is clear that public funds alone is not adequate to funds all SDGs, and thusIndonesia has established ‘FinancingHub’ atMinistry of BAPPENAS, to facilitatevarious new and innovative financing mechanisms, either from private sectors,philanthropyor otherpotential partners, both foreign anddomestic, in ensuringadequatefundsfortheachievementofSDGs.

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CHAPTER7 CONCLUSION

For the Republic of Indonesia, implementing national development agenda isimplementing SDGs. The SDGs are institutionalized from the highest national level tosubnationalentities,andintegratedintonationalandsubnationaldevelopmentplanning.Thisisamassiveandcollaborativeendeavorbetweengovernmentandnon-stateactorsdesignedtoserve264millionpeople–athirdofwhicharechildren–comprising1,300ethnicgroupsacross17,000islands.

The 2030 Agenda for Sustainable Development developed at the global levelcoincidedwiththeperiodofIndonesia’s2015-2019RPJMN.Someofthefocusesofthetwo documents are in line, among others: poverty, hunger and malnutrition, healthdevelopment, education and gender equality, efforts to reduce income inequality, andinequalities across regions. The SDGs have beenmainstreamed into the National andSubnational Medium-Term Development Plan (RPJMN, RPJMD), which is furtherelaborated in theNationalandSubnationalAnnualWorkPlan(RKP,RKPD).LocalisingSDGs in Indonesia is a reflection of Indonesia's highest commitment, as it reinforcesnationaldevelopmentagenda.AnothercommitmentwasshownbytheestablishmentofaNational Coordination Team for the implementation of the SDGs led directly by thePresident of the Republic of Indonesia. In addition, several regions have also formedregionalcoordinationteamstoimplementSDGsatthesubnationallevel.

Indonesia is not only committed to implement SDGs, but is determined to be apioneerandrolemodelfortheimplementationofSDGsinanefforttofosteramorejust,prosperousandamorepeacefulsociety,asamanifestationofIndonesia’sfreeandactiveforeign policy. Indonesia also seeks asmuch as possible to find a variety of financingsources to fund SDGs implementation, both conventional and innovative financingschemes.Thesourcesoffinancemaycomefromoptimizationofstaterevenues;sourcesofnon-governmentfinancing;andotherlegitimateandnon-bindingsources.

Theexperiencesofformulating2017VNRisinsightfulforIndonesiatodeterminefocus, increase inclusiveness and deepen involvement of all stakeholders, both theimplementersandtargetbeneficiariesthatincludepersonswithdisabilitiesindraftingthe2019VNR.Inclusivenessandleavingnoonebehindinthepreparationof2019VNRare the main principles that are consistently applied. During the review all SDGs’stakeholders which are the government, academic and experts, philanthropists andbusiness,aswellascivilsocietyorganizations,arerepresented.The2019VNRtimelineandschedulewerealsoinformedtoallstakeholderstobetterengagethemintheprocessofformulatingtheVNR.Moreover,toensurethatallstakeholdersareprovidedwiththewidestpossibleberth to convey their inputs to thedraft of the2019VNR, online andofflineconsultationswereundertaken.

Indonesia has continously been reducing inequality, complementedby sustainedandinclusiveeconomicgrowthandaccountablegovernance.Povertyhasbeenreducedto single digit for the first time in history, job opportunities and access to educationincreasedatalllevels,whileGHGemissionanddisasterriskswerereduced.

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Indonesiahasreducedinequalityinthemidstofglobaluncertainties,indicatedbythedecreaseofGiniRatioto0,384(2018).Reducinginequalityiscomplementedbyhighandinclusiveeconomicgrowth,increasedjobopportunities,increasededucationaccessinalllevels,aswellasreducedgreenhousegas(GHG)emissionandreduceddisasterrisksupportedbymulti-stakeholderpartnershipandgoodgovernance.

Aspartof theG20, Indonesiaexperienced5,17%economicgrowth, that isabovethan theG20averageof2,29%andglobalaverageof3,6%(2018).Besides, IndonesiaexperiencedincreasedannualgrowthrateofrealGDPperemployedpersonthatbringsIndonesiaalmosttouppermiddle-incomestatus.

Employmentratedecreasedto5,34%withfemaleunemploymentpercentageevenlower(2018)and9,38millionjobcreationduringtheperiodof2015-2019.Furthermore,economicgrowthofunderdevelopedregionsishigherthanthenationalaveragereflectingreducedeconomicregionaldisparity.Hence,thisshowsqualityandinclusiveIndonesia’seconomicgrowth.

RelativelyhigheconomicgrowthandreducedinequalityissupportedbyincreasededucationparticipationthatismeasuredwithANARatpre-primaryeducationof83,3%(5yo)and95,9%(6yo),GrossEnrollmentRate(GER)attheJuniorSecondarySchoolof91,5%,GERat the Senior SecondarySchoolof80,7%andGERat theTertiary level of30,2% in 2018. Gender inequality at all levels is almost non-existent, while access toPrimaryandJuniorSecondarySchoolisalmostequalacrossincomegroups.However,thegapisstillwideforaccessinSeniorSecondarySchoolandTertiarylevel.Almosthalfofyouthparticipatesinformalandnon-formaleducation,includingtrainingincreasedfrom34,65% (2009) to 48,7% (2018). Inequality in access to education for youth is still achallengeforthedisabled.

Althougheducationaccessinalllevelshasincreased,Indonesiastillfaceschallengesinqualityofeducation.ProgramforInternationalStudentAssessment(PISA)isOECD’stooltoevaluateeducationalsystemsworldwide,andthescoresshowedthattheminimumcompetenceof Indonesia’spupilswas still low,31% formathand45% for reading in2015.Thisresultisrelatedtopupils’socio-economicstatus.Theminimumcompetenceofpupils from families in the bottom 25% income percentile was 16% and 28%consecutivelyformathematicandreading,incomparisontopupilsfromfamiliesinthetop25%incomepercentilescoring54%and65%consecutivelyformathandreading.

Inclusiveeconomicgrowthhasbeensustainedbyimprovedqualityofenvironmentandsustainablenaturalresources,disasterriskreduction,andclimatechangeadaptionandmitigation.Inthelastdecade(2010-2017),IndonesiahasreduceditsGHGemissionto21,46%,anditsintensityto25%or±430tonneCO2e/billionrupiah).Withinthesametimeperiod,disasterriskhasbeenreduced,ratenumberofdeaths,missingpersonsandpersonsaffectedbydisasterper100.000peoplehasdecreasedfrom0,8(2010)to0,14(2017).ThisisalignedwithdecreaseindirectdisastereconomiclossinrelationtoGDPasmuchas7trillionrupiahanddecreaseinDisasterRiskIndex(IndeksRisikoBencana)asmuchas16,81%.

Efforts in reducing inequality are supported by good governance, among othersthrough civil society participation in decision-making. As the third largest democraticcountry, Indonesia’s Democracy Index (Indeks Demokrasi Indonesia) score is 72,11

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(2017)orcategory“Medium”.Proportionofwomenparliamentarians(2014)is16,6%,16% and 14% consecutively at national, provincial and district/city level, women inEchelonIandIIatgovernmentinstitutionsreachedalmost15%(2018).

Good governance is reflected in increment of compliance to public services’standardande-procurementatnationalandsubnationallevelwhichrequiresaccesstointernet that is conducted through thedevelopmentofPALAPARingprojectand fiberopticcoveringallregion.

Theprovisionofaccesstojusticeforthepoorandvulnerableandpeacefulsocietyisfundamentaltoprovideeducation,employment,andsustainableenvironmentprogramstoreduceinequality.Freelegalaidisprovidedtothepoorandvulnerableinfrontoflaw.Birthcertificatetoaccessbasisservicesforunder5reached71,92%whilechildren0-17yearsoldreached83,55%andchildrenfromthebottom40%incomepercentilereached77,4%.

Reducinginequalityrequiresmulti-stakeholderpartnership.Theestablishmentof9SDGsCentersatbiguniversitiesisareflectionofacademician’sroletoSDGs.Theprivatesector involvement through establishment of Philanthropy and Business for SDGs.Indonesia’s commitment forSouth-SouthandTriangularCooperation (SSTC) is shownwith the increase in supported activities, from 26 (2014) to 59 activities (2018).Indonesia’s parliament commitment is shown by conducting World ParliamentarianForumforthelastthreeyearsandtheSupremeAuditBody’scommitmentinmonitoringSDGsimplementation.

Multi-stakeholderpartnership isalsoreflected in financing fordevelopment(tax,remittances,multilateralandbilateraldevelopmentpartners,innovativefinancing).TaxratiotoGDPreached10,3%(2018),amongothers,throughtaxamnesty.TheMinistryofNational Development Planning/National Development Planning Agency has beendeveloping innovative financing through SDGs Financing Hub which coordinated thecooperationbetweengovernmentandcommunitythroughblendedfinancing,PPP,faith-basedcharityforSDGs,aswellascrowdfunding.

VariousachievementsofSDGsimplementationontheother11goalshavealsobeenreported.Thereportcoverstheprogressofpovertyeradication;hungeralleviationandnutritional intake; improving health and well-being; gender equality; access to cleanwaterandsanitation;cleanandaffordableenergyavailability;developmentofindustry,innovation and infrastructure; development of sustainable cities and communities;application of responsible consumption and production; as well as protection andutilizationofmarineandterrestrialecosystems.

Indonesiastillfacesseveralchallengesinovercominggapsthatcanbeclassifiedintothreecategories.First,limitedaccesstopublicservicesincludingeducationandeconomicopportunityduetopovertyandremotenessoflocations.Second,notallpublicservicescomply with national standards and are applied without discrimination. Third, theavailabilityofadequate,up-to-dateanddisaggregateddataandinformationasabasisforinclusivedevelopmentplanning.

Ingovernanceaccountability,challengesincludescorruption,whichamongothers,isindicatedbytheIndonesianAnti-CorruptionBehaviorIndexat3.66(onascaleof5)in

240

2018;public informationdisclosuredecreasedto39.29%in2017from50,38in2016;birthregistrationhasnotyetcoveredall Indonesianchildren,especiallychildren frompoor and vulnerable households (bottom 40%); violence against children reached38.62%forboysand20.48%forgirls(2013);;andtheprevalenceofwomenaged20-24yearswhowerefirstmarriedorinunionbeforeage18is11.21%(2018).

Ineducationsector,thebiggestchallengeistoimprovethequalityofteachingandstudents’learningoutcomes,aswellasimproveeducationgovernanceincludingqualityofspendingandimplementationmanagementwithinthecontextofdecentralization.

Challenges indisastermanagement andmanaging the impacts of climate changeincludegeographicalfactorsandthecharacteristicsofmulti-disasterthreats, increasedpopulationwhichpotentiallyexposedtodisasters,andthelackofdisasterpreparedness.Bigamountofcriticallandtoberestored,lackofenergydiversificationandinefficientuseofnaturalresources.Otherchallengesincludelowtaxcompliance,inadequacyoftaxationhumanresources,andtheneedtoincreasethefixedbroadband.

PolicyframeworkofIndonesia’sdevelopmenttoEmpoweringPeopleandEnsuringInclusiveness and Equality is to promote inclusive and sustainable growth throughimprovement of productivity by structural reformation; promote equity and povertyreduction; ensure sustainable environment; andanticipate economicdisruption in thefuture.

Indonesia’s Development priorities include strengthening human developmentthroughpovertyreductionandbasicservicesimprovement;reducingregionaldisparitiesthroughconnectivityandmaritimedevelopment;increasingeconomicvalueaddedandjobcreation;andovercomingthedigitaldivide.

InthelastthreeyearsofSDGsimplementation,IndonesiashowsprogressioninallSDGs indicators.This isdue toastrongregulatory framework for implementingSDGs,high ownership from stakeholders, a set of tools to localize SDGs, andmainstreamingSDGsintonationalandsubnationaldevelopmentagenda.Theoutstandingperformanceisconfirming that Indonesia is moving towards success full achievement of the 2030Agenda.

241

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STATISTICALANNEX

GOAL1NOPOVERTY

TrendoftheFamilyHopeProgram(ProgramKeluargaHarapan/PKH-ConditionalCashAssistance)BudgetAllocationandTotalParticipantsin2014-2018

YearBudget

AllocationinBillion

PKHRecipientinthousand

2014 4,390 2,797.82015 5,580 3,511.02016 7,790 5,981.52017 12,480 6,228.82018 17,420 10,000.2

Source:MinistryofSocialAffairs,variousyearsreporting

GOAL2ZEROHUNGER

ThePrevalenceofStuntingandWastinginChildrenunderFiveYearsofAge,2007-2018Year Wasting Stunting2007 13,6 36,82010 13,3 35,62013 12,1 37,22016 9,8 33,062018 10,2 30,8

Source:BasicHealthResearchIndonesia(Riskesdas)2007-2018,NationalHealthIndicatorSurvey(Sirkesnas)2016

DesirableDietaryPattern(DDP)Score,2009-2018

Year Indonesia’sAchievement

2009 75.72010 85.72011 85.62012 83.52013 81.42014 83.42015 85.22016 862017 902018 90.7

Source:FoodSecurityAgency,MinistryofAgriculture,2009-2018

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GOAL3GOODHEALTHANDWELL-BEING

TrendofInfantMortalityRate(IMR),Under-5MortalityRate(U5MR)andNeonatalMortalityRate(NMR)

Year U5MR IMR NMR1991 97 68 321994 81 57 301997 58 46 22

2002/2003 46 35 202007 44 34 192012 40 32 192015 32 24 15

Source:IndonesianDemographicandHealthSurvey(IDHS),StatisticsIndonesia

TrendofCommunicableDiseases

YearAnnualParasite

Incidence/API

IncidenceofTuberculosisper100.000Population

2011 1.75 4102012 1.69 4072013 1.38 4032014 0.99 3992015 0.85 3952016 0.84 3912017 0.99 3192018 0.84 -

Source: Disease Prevention and Control Surveillance Report, Directorate General of Disease Prevention and Control,MinistryofHealth

TrendofRiskFactorsofNon-CommunicableDiseases

Year Smoking≤18yo

Hypertension≥18yo Obesity≥18yo

2013 7.2 25.8 15.42016*Health'sIndicatorsSurvey

8.8 32.4 20.7

2018 9.1 34.1 21.8Source:ResearchBasicHealth(Riskesdas)2013-2018,Health’sIndicatorsSurvey(Sirkesnas)2016,MinistryofHealth

TrendoftheContraceptivePrevalenceRateYear AllMethods ModernMethod1991 49.7 47.11994 54.7 52.11997 54.7

2002/03 60.3 56.72007 61.4 57.4

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Year AllMethods ModernMethod2012 61.9 57.92017 64.0 57.0


TrendofTotalFertilityRate(TFR)andAge-SpecificFertilityRate(ASFR)Year TFR ASFR1991 3 671994 29 611997 2.8 62

2002/03 2.6 512007 2.6 512012 2.6 482017 2.4 36


TrendofNationalHealthInsurance(JaminanKesehatanNasional/JKN)CoverageYear JKNCoverage2015 61.552016 66.502017 71.802018 78.70


PercentageofUnmetNeedsforHealthServices

Year UnmetNeedofHealthService

2006 9.92007 7.82008 7.62009 8.32010 7.32011 6.32012 62013 52014 5.22015 4.662016 4.332017 5.262018 4.91

Source:TheNationalSocio-EconomySurvey(Susenas).StatisticsIndonesia

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GOAL4QUALITYEDUCATION

GrossEnrolmentRate(GER),2015-2018

EducationLevel Year2015 2016 2017 2018

Primary 110.5 109.3 108.5 108.6JuniorSecondary 91.2 90.1 90.2 91.5SeniorSecondary 78.0 80.9 82.8 80.7

Tertiary 25.3 28.0 29.9 30.2Source:TheNationalSocio-EconomicSurvey(Susenas),StatisticsIndonesia

GERRatiobetweenthePoorestQuintileandtheRichestQuintile,2000-2018

EducationLevel Year2000 2001 2002 2010 2016 2017 2018

Primary 1.00 1.0 1.0 0.99 1.03 1.04 1.03JuniorSecondary 0.6 0.6 0.7 0.84 0.98 1.01 1.02SeniorSecondary 0.29 0.3 0.3 0.42 0.72 0.73 0.71

Tertiary 0.03 0.03 0.03 0.05 0.14 0.17 0.17Source:TheNationalSocio-EconomicSurvey(Susenas),StatisticsIndonesia

Out-of-SchoolRatio,byAgeGroup,2000-2018

AgeGroup Year2000 2010 2015 2016 2017 2018

7-12yo 4.76 1.98 0.63 0.71 0.67 0.7913-15yo 28.8 13.8 8.6 8.1 7.8 6.916-18yo 50.4 33.8 30.7 24.7 23.9 22.8

Source:TheNationalSocio-EconomicSurvey(Susenas),StatisticsIndonesia

ProportionofSchoolswithAccesstoToilet(basicsanitationfacilities)bySex,2016-2018

EducationLevel

Year2016 2017 2018

Primary 31.40 39.73 68.99Junior

Secondary 41.88 50.05 79.48Senior

Secondary 35.82 49.99 84.14VocationalSecondary 41.36 53.31 83.40


ProportionofSchoolsWithAccesstoCleanWaterEducationLevel

Year2016 2017 2018


Secondary 43.33 86.74 87.04

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EducationLevel

Year2016 2017 2018

SeniorSecondary 49.16 89.51 89.85VocationalSecondary 48.60 91.97 92.21


ProportionofSchoolsWithHandWashingFacilities,2016-2018EducationLevel

Year2016 2017 2018


Secondary 39.23 42.60 44.67Senior

Secondary 47.21 49.73 51.63VocationalSecondary 47.03 49.28 51.65


PercentageofTeacherswithMinimumQualificationofS1/DIV,2016-2018EducationLevel Year >=S1(bachelor

degree)<S1(bachelor

degree)

Primary 2017 51.96 48.042016 52.29 47.71

Primary2018 88.35 11.652017 85.99 14.012016 84.21 15.79

JuniorSecondary

2018 94.45 5.552017 93.16 6.842016 92.11 7.89

SeniorSecondary

2018 97.95 2.052017 97.39 2.612016 96.88 3.12

VocationalSecondary

2018 95.36 4.642017 94.55 5.452016 93.96 6.04


TrendofPercentageofCertifiedTeachersEducationLevel Year Certified Notcertified

Pre-Primary2018 2017 66.67 33.332016 68.95 31.05

Primary2018 42.81 57.192017 47.8 52.22016 45.03 54.97

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EducationLevel Year Certified Notcertified

JuniorSecondary

2018 45.75 54.252017 49.43 50.572016 50.07 49.93

SeniorSecondary

2018 46.49 53.512017 49.17 50.832016 50.95 49.05

VocationalSecondary

2018 35.3 64.72017 35.72 64.282016 37.34 62.66


Proportionofchildrenandyoungpeopleattheendoflowersecondaryachievingatleastaminimumproficiencylevelinreadingandmathematics

CategoryYear

2003 2006 2009 2012 2015

Reading 37 42 47 45 45

Mathematic 22 34 23 24 31Source:PISA2003,2006,2009,2012,2015fromhttp://data.uis.unesco.org

Proportionofchildrenandyoungpeopleattheendoflowersecondaryachievingatleastaminimumproficiencylevelinreadingbysex,2000-2015

Category Year2003 2006 2009 2012 2015

Reading 37 42 47 45 45Reading(girls) 43 46 58 52 51Reading(boys) 31 37 35 37 38


Proportionofchildrenandyoungpeopleattheendoflowersecondaryachievingatleastaminimumproficiencylevelinmathematicsbysex,2000-2015

Category Year2003 2006 2009 2012 2015

Mathematic 22 34 23 24 31Mathematic(girls) 22 30 24 23 32Mathematic(boys) 22 39 23 25 30


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Proportionofchildrenandyoungpeopleattheendoflowersecondaryachievingat leastaminimumproficiency level inreadingbySocio-EconomicStatus,2000-2015

Category Year2003 2006 2009 2012 2015

Reading 37 42 47 45 45Reading(25%Richest) 54 62 64 59 65Reading(25%Poorest) 26 27 35 36 28


Proportionofchildrenandyoungpeopleattheendoflowersecondaryachievingat least aminimum proficiency level inmathematics by Socio-Economic Status,2000-2015

Category Year2003 2006 2009 2012 2015

Mathematic 22 34 23 24 31Mathematic(25%Richest) 39 54 42 41 54Mathematic(25%Poorest) 13 21 13 15 16Source:PISA2003,2006,2009,2012,2015http://data.uis.unesco.org

PrimarySchoolChildreninGrade4AchievingatLeastaMinimumProficiencyLevelinReading,bySexandProvince,2016

Province Male Female Overall GapSulawesiBarat 14 27 21 13SulawesiUtara 18 33 26 15Gorontalo 21 31 26 10SulawesiSelatan 24 34 29 10SulawesiTengah 20 39 30 18MalukuUtara 21 38 30 17Maluku 23 38 30 15NusaTenggaraTimur 30 39 35 10Papua 32 45 39 13KalimantanTengah 33 44 39 11NusaTenggaraBarat 30 49 40 19KalimantanUtara 31 47 40 16KalimantanBarat 33 49 41 17Banten 41 54 47 13Bali 41 60 50 18SulawesiTenggara 45 55 51 11SumateraUtara 45 56 51 11DKIJakarta 43 59 51 16Bengkulu 47 57 52 10Lampung 43 60 52 17Total 46 60 53 14Jambi 46 60 54 13

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Province Male Female Overall GapAceh 46 61 54 15PapuaBarat 54 55 55 1SumateraSelatan 47 61 55 14KalimantanSelatan 50 62 56 11JawaBarat 49 64 57 15JawaTengah 50 67 58 16BangkaBelitung 49 71 60 22KalimantanTimur 57 69 64 12SumateraBarat 55 72 64 17Riau 61 73 67 13JawaTimur 64 75 69 11DIYogyakarta 66 83 75 17KepulauanRiau 72 80 76 Source:INAP2016

Youth Participation in Formal/ Non-formal Education and Training byCharacteristic,2018

Category Year2018Total 48.7Urban 50.9Rural 45.7Male 48.6Female 48.7Withoutdisability 48.9Withdisability 24.5Source:TheNationalSocio-EconomicSurvey(Susenas),StatisticsIndonesia

Working/LaborForcePercentageBasedonHighestCompletedEducation,2008-2018

EducationLevel Year2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Primary 94,3 94,4 95,4 96,1 95,9 95,9 96,0 96,0 96,4 96,0 97,1JuniorSecondary 90,0 90,6 92,5 92,1 92,1 91,8 92,6 92,9 94,2 94,6 94,8SeniorSecondary 86,3 87,6 88,1 87,4 89,5 90,6 90,9 91,8 93,0 93,0 92,8VocationalSecondary 85,2 84,3 86,2 89,9 90,4 92,3 92,8 90,9 90,2 90,7 91,1VocationalTertiary 83,7 84,6 84,3 87,8 92,4 94,3 94,1 92,5 92,8 93,6 92,1Tertiary 85,8 87,1 85,8 89,8 93,0 95,0 95,7 94,7 93,8 95,0 93,7Total 91,5 91,9 92,6 93,0 93,6 94,1 94,3 94,2 94,5 94,7 94,9Source:NationalLabourForceSurvey(Sakernas),StatisticsIndonesia

Participationof5and6YearOldsinOrganizedLearningAgeGroup

Year2002 2010 2015 2016 2017 2018

6yo 59,5 83,3 95,8 94,9 94,9 95,95yo 34,1 56,4 79,4 76 77,2 83,3


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Participationof5and6yearoldsinOrganizedLearningBasedonGender,2002,2010,2015-2018

AgeGroupYear

2002 2010 2015 2016 2017 2018

Girls(6yo) 60,9 84,9 96,4 95,3 95,5 96,1

Boys(6yo) 58,2 81,8 95,4 94,5 94,3 95,6

Girls(5yo) 35,8 58,4 80,6 78 78,4 84,5

Boys(5yo) 32,6 54,6 78,3 74 76,1 82Source:TheNationalSocio-EconomicSurvey(Susenas),StatisticsIndonesia

Participationof5and6yearoldsinOrganizedLearningbasedonTypesofSchool,2015-2018

AgeGroup Year In

Preschool

InPrimarywithoutPreschool

InPrimaryever

Preschool

NotinSchool

5yo

2015 47 9,7 22,7 20,62016 52,5 6,8 16,7 242017 54,6 6,6 16 22,82018 62,9 6,1 14,2 16,7

6yo

2015 6 23,8 66,1 4,22016 8,5 20,3 66 5,12017 8,9 20,1 65,8 5,12018 9,6 19,8 65,5 4,1


GOAL5–GENDEREQUALITY

Percentageofwomenat20-24yearsofageweremarriedforthefirsttimeorlivingtogetherwithoutbeingmarriedatorbefore15yearsoldandatorbefore18yearsold

Year ≤15yo ≤18yo

2011 1.38 13.97

2012 1.15 14.02

2013 1.05 13.58

2014 0.99 13.55

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Year ≤15yo ≤18yo

2015 0.6 12.14

2016 0.54 11.11

2017 0.48 11.54

2018 0.56 11.21Source:StatisticsIndonesia

TrendofMedianAgeatFirstMarriage

Year Median Age atFirstMarriage

1991 17.11994 18.11997 18.6

2002/03 19.22007 19.82012 20.12017 21.8

Source:IndonesiaDemographicandHealthSurvey(IDHS),StatisticsIndonesia

PercentageofWomenDPRMembersin1950-2014GeneralElectionElectionYear WomeninDPR(%)

1955 5.881971 6.741977 8.041982 9.131987 11.81992 12.41997 12.51999 8.82004 11.822009 17.862014 17.32


PercentageofWomenCivilServantsasEchelonI-IVYear EselonI EselonII EselonIII EselonIV EselonV2011 9.17 8.3 15.85 25.86 24.542012 16.41 12.84 19.58 32.38 31.122013 20.09 15.04 20.6 33.39 31.182014 20.66 16.39 21.19 34.39 30.472015 15.67 13.04 19.72 33.19 32.642016 17.98 13.41 21.09 34.63 31.23

255

Year EselonI EselonII EselonIII EselonIV EselonV2017 15.21 13.06 22.53 36.28 28.77

Source:StatisticsIndonesia/StatePersonnelAgency

ProportionofIndividualsWhoOwnaMobileTelephoneYear Men Women2015 63.4 50.42016 64.4 52.12017 67.59 57.19


GOAL6.CLEANWATERANDSANITATIONAccesstoCleanWaterandSanitation,2015-2018

YearIndicator

Theproportionofhouseholdswithaccesstocleanwater

Theproportionofhouseholdaccesstosanitation

2015 58.92 67.952016 61.12 71.782017 59.07 73.072018 61.29 74.58

Source:TechnocraticDesignNationalMedium-TermDevelopmentPlan(RPJMN)2020–2024

GOAL7AFFORDABLEANDCLEANENERGY

RatioofElectrification

Year RatioofElectrification

2010 67.22011 732012 76.62013 80.52014 84.32015 88.32016 91.22017 95.3

2018 97.5(target);98.3(realization)

Source:MinistryofEnergyandMineralResources

256

DevelopmentofCityGasNetwork(NumberofHousehold)

Year DevelopmentofCityGasNetwork(NumberofHousehold)

2014 2002015 220.362016 319.512017 373.192018 463.62

Source:MinistryofEnergyandMineralResources

GOAL8DECENTWORKANDECONOMICGROWTH

RealGDPperCapita(millionIDR)andRealGDPperCapitaGrowth(%)

Year GDPperCapita(IDR) GrowthofGDPperCapita(%)

2010 28.78 -2011 30.12 4.652012 31.48 4.552013 32.78 4.122014 33.97 3.612015 35.16 3.522016 36.47 3.722017 37.85 3.792018 39.34 3.93


ProportioninTotalEmployment(%)Year Agriculture Industry Service2000 45.3 13.0 41.32001 43.8 13.3 41.92002 44.3 13.2 41.82003 46.4 12.4 40.42004 43.3 11.8 43.82005 44.0 12.7 42.42006 42.0 12.5 44.52007 41.2 12.4 45.42008 40.3 12.2 46.42009 39.7 12.2 47.02010 38.3 12.8 47.72011 36.4 13.5 48.72012 35.2 13.9 49.52013 34.8 13.3 50.72014 34.0 13.3 51.42015 32.9 13.3 52.72016 31.9 13.1 53.72017 29.7 14.1 55.1

257

Year Agriculture Industry Service2018 28.8 14.7 56.5

Source:NationalLabourForceSurvey(Sakernas),StatisticsIndonesia

RealGDPGrowthperEmployment(%)Year Indonesia Malaysia Philippines Thailand Vietnam2010 3.79 3.9 4.60 6.25 4.262011 4.15 0.43 0.29 -1.01 3.532012 3.93 0.98 5.02 7.04 3.002013 4.15 -0.23 5.25 4.06 3.722014 3.49 2.99 1.17 4.112015 5.79 2.43 4.30 4.53 5.832016 2.25 2.57 4.68 3.03 5.442017 3.7 3.67 4.15 3.65 5.462018 3.79 3.08 3.79 2.89 5.64


GrowthofGDPperpersonemployedusingPPPYear GrowthofGDPperperson

employedusingPPP2011 6.952012 1.232013 5.322014 3.312015 4.622016 1.852017 2.82018 2.64

Source:WorldBank

ProportionofFormalEmploymentbySex(%)Year Total Men Women2010 32.2 34.3 28.62011 37.8 40.2 33.52012 39.8 42.8 35.12013 39.9 43.0 34.82014 40.6 43.5 35.92015 42.2 44.9 37.82016 42.4 45.0 38.22017 43.0 45.7 38.62018 43.2 46.3 38.2


ProportionofInformalEmploymentinAgriculture(%)Year Total Men Women2015 87.12 83.73 93.19

258

Year Total Men Women2016 88.59 85.32 94.322017 89.5 85.69 93.592018 88.27 85.2 93.8


ProportionofInformalEmploymentinNon-Agriculture(%)Year Total Men Women2015 43.37 40.66 47.842016 43.09 40.02 47.82017 43.75 40.3 49.042018 44.13 40.12 50.19


ProportionofInformalEmploymentinNon-agricultureSectorbyEducation(%)

Year Elementary Secondary Highschool

Vocationalschool Diploma University

2010 77.9 70.3 57.0 42.0 38.3 12.92011 68.4 50.9 35.3 30.1 12.0 6.92012 67.7 50.9 33.1 26.4 13.2 8.62013 68.4 52.4 33.9 25.7 12.8 8.42014 68.1 52.1 34.4 26.8 14.4 8.22015 67.7 52.9 34.2 26.8 14.8 8.22016 66.0 52.9 36.1 30.4 18.3 10.02017 66.7 52.6 37.0 29.1 17.7 10.52018 66.4 53.7 37.7 31.2 18.8 11.5


UnemploymentRate

Year Total

Sex Location EducationLevel Disability

Men

Wom

en

Urban

Rural

NoEducation

Primary

Secondary

University

Moderate/Se

vere

Disability

NoDisability

2010 7.00 6.05 8.52 9.26 5.37 3.18 5.42 11.75 2.05 2011 7.48 6.65 8.86 9.38 5.63 4.02 3.86 11.10 8.81 2012 6.13 5.76 6.73 7.74 4.59 2.61 4.24 8.95 6.01 2013 6.17 6.02 6.40 7.31 5.08 2.61 3.98 9.15 5.55 2014 5.94 5.75 6.26 7.12 4.81 2.16 3.60 8.95 5.78 2015 6.18 6.07 6.37 7.31 4.93 1.25 3.94 11.16 6.68 2016 5.61 5.70 5.45 6.60 4.51 1.46 3.88 9.63 5.15 3.1 5.82017 5.50 5.53 5.44 6.79 4.01 1.63 3.61 9.48 5.57 3.5 5.72018 5.34 5.40 5.26 6.45 4.04 2.02 2.79 7.58 5.92 2.6 5.6Source:NationalLabourForceSurvey(Sakernas),StatisticsIndonesia

259

UnderemploymentRatebySex

Year Total Sex LocationMen Women Urban Rural

2010 13.29 12.28 14.90 7,64 17,402011 11.22 10.35 12.68 8,43 13,932012 10.63 9.89 11.83 6,24 14,802013 9.15 9.82 8.05 5,95 12,212014 7.94 7.99 7.87 4,99 10,802015 8.48 8.43 8.57 5,47 11,702016 7.58 7.63 7.50 5,08 10,282017 7.55 7.46 7.71 4,91 10,522018 6.62 6.77 6.39 4,28 9,31


AverageHourlyEarnings

Year AverageHourlyEarnings Growth

2011 8,462 14.932012 9,001 6.372013 11,662 29.562014 10,860 -6.882015 11,389 4.872016 13,888 21.952017 14,764 6.302018 15,318 3.75


AverageHourlyEarningsbyGenderYear Men Women2010 7,640 6,7982011 8,725 7,8882012 9,288 8,3922013 12,084 10,7582014 11,211 10,1252015 11,513 11,1192016 14,101 13,4582017 15,385 13,4922018 15,892 14,142


MinimumWageAcrossRegionsProvince MLE MSE DeviationWestJava 1544 3919 2375Banten 2099 3622 1523

CentralJava 1486 2310 824

260

Province MLE MSE DeviationEastJava 1509 3583 2074RiauIsland 2564 3523 960


NumberofChildWorkersAged10-17

Year ChildWorkersfromaged10to17

2015 6.02016 7.02017 7.22018 7.0


TourismSectorContributiontoEmployment(%)

YearTourismSectorContributiontoEmployment(%)

2011 7.92012 8.32013 8.52014 9.02015 9.02016 10.42017 10.42018 10.2Source:StatisticsIndonesiaandMinistryofTourism

TourismSectorContributiontoGDP

Year TourismSectorContributiontoGDP

2015 4.252016 4.132017 4.112018

(Target) 5.25Source:StatisticsIndonesiaandMinistryofTourism

NumberofDomesticandForeignTourists

YearDomesticTourists(rhs)

ForeignTourists(lhs)

2015 256.4 10.42016 264.3 12.02017 270.9 14.02018 273.5 16.2

Source:StatisticsIndonesiaandMinistryofTourism

261

ForeignReservefromTourismSector(IDRTrillion)

YearForeignReservefromTourismSector(IDR

Trillion)2015 175.712016 176.232017 198.892018

(Target) 223Source:MinistryofTourism

NumberofCommercialBanksandATMper100,000Adults

Year ATMper100,000Adults

CommercialsBankper100,000Adults

2015 53 162016 56 162017 55 162018 56 16

Source:BankIndonesia

2017GlobalFindexCategory\Country Malaysia Thailand Indonesia Philippines VietnamAccount(%age15+) 85% 82% 49% 34% 31%

Account,male(%age15+) 88% 84% 46% 30% 31%

Account,female(%age15+) 82% 80% 51% 39% 30%

Account,income,poorest40%(%ages15+)

81% 78% 37% 18% 20%

Source:WorldBank

ProportionofSMEswithAccesstoFinancialServices(%)

YearProportionofSMEswithAccesstoFinancial

Services(%)2015 22.62016 25.72017 22.32018 23.6


262

ProportionofSMEsCredittoTotalCredit(%)

Year ProportionofSMEsCredittoTotalCredit(%)

2013 18.92014 20.32015 19.92016 20.02017 20.32018*

(DatauntilOctober2018)

19.7


GOAL9INDUSTRY,INNOVATIONANDINFRASTRUCTURE

PercentageofSteadyRoadCondition2010-2017(%)

Year SteadyStateCondition

2010 82.272011 87.722012 90.822013 92.952014 93.952015 932016 912017 92

Source:MinistryofPublicWorksandPublicHousing

ProportionofValue-AddedManufacturingSectortoGDP(%)

YearManufacturingContributionto

GDPGrowth

2010 22.04 3.792011 21.76 6.262012 21.45 5.622013 21.03 4.372014 21.08 4.642015 20.97 4.332016 20.51 4.292017 20.16 4.292018 19.86 4.27


263

GOAL10REDUCINGINEQUALITY

LongTermInequalityTrendYear GiniCoefficient1976 0.341978 0.381980 0.341981 0.331984 0.3251987 0.321990 0.321993 0.341996 0.361999 0.312002 0.3192003 0.322004 0.322005 0.3552006 0.362007 0.3762008 0.3682009 0.3672010 0.3782011 0.3882012 0.4132013 0.4062014 0.4142015 0.4022016 0.3942017 0.3912018 0.384


LongTermInequalityTrendinIndonesiaUrban-RuralYear GiniCoefficient

Urban Rural1976 0.35 0.311978 0.38 0.341980 0.36 0.311981 0.33 0.291984 0.32 0.281987 0.32 0.261990 0.34 0.251993 0.33 0.261996 0.36 0.271999 0.33 0.262002 0.33 0.242003 0.34 0.262004 0.32 0.242005 0.31 0.252006 0.351 0.28

264

Year GiniCoefficientUrban Rural

2007 0.35 0.282008 0.374 0.3022009 0.367 0.32010 0.372 0.2952011 0.382 0.3152012 0.396 0.3292013 0.425 0.3272014 0.424 0.3242015 0.433 0.3362016 0.419 0.3292017 0.409 0.3162018 0.404 0.32


AverageExpenditureperCapita(Constant2012),inThousandsYear IncomePercentile

Top20% Middle60% Bottom20%2000 648.6882 276.9481 151.29422001 676.7611 283.889 156.14462002 864.4768 322.3378 170.80812003 807.0955 331.3161 178.60612004 782.1303 311.2569 163.93542005 938.3853 358.1298 178.97282006 936.979 348.0105 168.10452007 1,101.57 381.3248 179.64542008 1,069.039 379.4715 180.54392009 1,110.01 398.5688 193.61222010 1,311.828 449.3504 203.40632011 1,518.82 468.8485 212.74862012 1,559.512 476.7253 220.8992013 1,633.833 490.2513 229.80922014 1,677.878 519.3724 243.73272015 1,768.909 550.5366 252.41722016 1,810.663 597.4196 263.062017 1,919.257 648.4576 278.07742018 1,956.718 667.6688 287.0744


TheilIndexYear Urban-Rural

Intra-GroupInequality

Urban-RuralInter-GroupInequality

NationalInequality

2000 0.027 0.149 0.1772001 0.0261 0.157 0.1832002 0.052 0.198 0.2492003 0.036 0.164 0.22004 0.043 0.18 0.223

265

Year Urban-RuralIntra-GroupInequality

Urban-RuralInter-GroupInequality

NationalInequality

2005 0.033 0.195 0.2282006 0.035 0.197 0.232007 0.036 0.231 0.2672008 0.036 0.225 0.2612009 0.035 0.213 0.2482010 0.035 0.244 0.2782011 0.04 0.304 0.3442012 0.039 0.306 0.3452013 0.037 0.3 0.3372014 0.036 0.29 0.3262015 0.028 0.305 0.3332016 0.026 0.267 0.2932017 0.025 0.256 0.2822018 0.022 0.259 0.28


GrowthIncidenceCurve(GIC)forNational,andUrban-Rural(2014-2018)

Percentile

National Urban RuralTotal

ConsumptionGrowth

GrowthRateinMean(%)

TotalConsumption

Growth

GrowthRateinMean(%)

TotalConsumption

Growth

GrowthRateinMean(%)

1 11.8 21.8 10.4 16.1 10.2 24.92 11.6 21.8 11.5 16.1 11.0 24.93 12.0 21.8 11.0 16.1 10.9 24.94 12.4 21.8 11.1 16.1 11.2 24.95 12.6 21.8 12.3 16.1 11.2 24.96 13.1 21.8 15.0 16.1 11.7 24.97 13.8 21.8 16.4 16.1 12.0 24.98 14.7 21.8 16.8 16.1 12.7 24.99 16.2 21.8 17.3 16.1 13.2 24.910 17.6 21.8 18.9 16.1 13.7 24.911 18.6 21.8 19.4 16.1 14.3 24.912 19.4 21.8 20.4 16.1 15.0 24.913 19.8 21.8 21.2 16.1 16.0 24.914 20.5 21.8 22.0 16.1 16.8 24.915 21.5 21.8 22.7 16.1 17.6 24.916 22.1 21.8 23.8 16.1 18.2 24.917 22.6 21.8 24.2 16.1 18.9 24.918 23.2 21.8 24.5 16.1 19.6 24.919 23.9 21.8 24.8 16.1 20.0 24.920 24.7 21.8 25.1 16.1 20.6 24.921 25.0 21.8 25.3 16.1 21.2 24.922 25.5 21.8 25.7 16.1 21.8 24.923 25.9 21.8 25.7 16.1 22.1 24.9

266

Percentile


ConsumptionGrowth

GrowthRateinMean(%)

TotalConsumption

Growth

GrowthRateinMean(%)

TotalConsumption

Growth

GrowthRateinMean(%)

24 26.3 21.8 25.5 16.1 22.7 24.925 26.3 21.8 25.7 16.1 23.5 24.926 26.5 21.8 25.3 16.1 23.8 24.927 26.6 21.8 25.1 16.1 24.3 24.928 26.6 21.8 25.1 16.1 24.6 24.929 26.8 21.8 24.9 16.1 24.7 24.930 27.0 21.8 24.8 16.1 24.9 24.931 27.2 21.8 25.0 16.1 25.4 24.932 27.2 21.8 25.0 16.1 25.4 24.933 27.2 21.8 25.0 16.1 25.4 24.934 27.2 21.8 25.0 16.1 25.4 24.935 27.0 21.8 24.8 16.1 25.2 24.936 26.9 21.8 24.4 16.1 25.1 24.937 27.2 21.8 24.5 16.1 25.0 24.938 27.2 21.8 24.5 16.1 25.2 24.939 27.4 21.8 24.3 16.1 25.5 24.940 27.6 21.8 24.3 16.1 25.6 24.941 27.7 21.8 23.9 16.1 25.4 24.942 27.8 21.8 23.5 16.1 25.7 24.943 27.8 21.8 23.4 16.1 25.6 24.944 28.3 21.8 23.6 16.1 25.3 24.945 28.4 21.8 23.9 16.1 25.2 24.946 28.4 21.8 23.9 16.1 25.5 24.947 28.3 21.8 23.6 16.1 25.9 24.948 28.5 21.8 23.8 16.1 26.2 24.949 28.7 21.8 23.8 16.1 26.2 24.950 28.8 21.8 23.7 16.1 26.4 24.951 28.7 21.8 23.8 16.1 26.6 24.952 28.5 21.8 23.7 16.1 26.7 24.953 28.6 21.8 24.2 16.1 26.9 24.954 28.8 21.8 24.3 16.1 27.4 24.955 29.0 21.8 24.1 16.1 27.7 24.956 29.2 21.8 23.8 16.1 28.0 24.957 29.4 21.8 23.4 16.1 28.0 24.958 29.3 21.8 23.6 16.1 28.5 24.959 29.0 21.8 23.9 16.1 28.6 24.960 29.1 21.8 23.7 16.1 28.7 24.961 29.2 21.8 23.1 16.1 28.8 24.962 29.2 21.8 23.2 16.1 29.0 24.963 29.5 21.8 23.3 16.1 29.0 24.964 29.8 21.8 23.5 16.1 29.3 24.965 29.8 21.8 23.0 16.1 29.4 24.966 29.7 21.8 22.9 16.1 29.7 24.9

267

Percentile


ConsumptionGrowth

GrowthRateinMean(%)

TotalConsumption

Growth

GrowthRateinMean(%)

TotalConsumption

Growth

GrowthRateinMean(%)

67 29.7 21.8 23.4 16.1 29.8 24.968 29.7 21.8 23.0 16.1 30.1 24.969 29.5 21.8 22.7 16.1 30.3 24.970 29.5 21.8 22.9 16.1 30.2 24.971 29.2 21.8 23.1 16.1 30.2 24.972 29.0 21.8 22.4 16.1 30.8 24.973 28.8 21.8 22.2 16.1 30.3 24.974 28.6 21.8 22.0 16.1 30.2 24.975 28.5 21.8 22.2 16.1 30.8 24.976 28.5 21.8 21.3 16.1 30.6 24.977 28.3 21.8 20.5 16.1 30.3 24.978 27.9 21.8 20.5 16.1 30.6 24.979 27.7 21.8 20.3 16.1 30.5 24.980 27.7 21.8 19.4 16.1 30.4 24.981 27.0 21.8 19.1 16.1 30.4 24.982 26.4 21.8 18.3 16.1 29.9 24.983 26.3 21.8 17.7 16.1 29.8 24.984 25.8 21.8 17.3 16.1 29.3 24.985 25.4 21.8 16.7 16.1 29.0 24.986 25.0 21.8 16.1 16.1 28.6 24.987 24.4 21.8 15.7 16.1 28.3 24.988 23.2 21.8 15.8 16.1 28.2 24.989 22.6 21.8 15.4 16.1 27.6 24.990 21.6 21.8 14.8 16.1 27.0 24.991 21.0 21.8 14.5 16.1 26.3 24.992 19.6 21.8 14.1 16.1 24.9 24.993 19.9 21.8 13.3 16.1 23.7 24.994 18.9 21.8 10.3 16.1 24.1 24.995 18.1 21.8 9.4 16.1 23.7 24.996 17.3 21.8 9.2 16.1 22.5 24.997 13.1 21.8 8.6 16.1 21.5 24.998 12.8 21.8 6.3 16.1 19.7 24.999 10.0 21.8 0.4 16.1 21.0 24.9


PovertyRateYear PovertyRate

Urban Rural National2008 11.65 18.93 15.422009 10.72 17.35 14.152010 9.87 16.56 13.332011 9.23 15.72 12.492012 8.79 15.1 11.96

268

2013 8.42 14.28 11.362014 8.34 14.17 11.252015 8.29 14.21 11.222016 7.79 14.11 10.862017 7.72 13.93 10.642018 7.02 13.2 9.82


NationalPovertyRateandPercentageofPoorinUnderdevelopedRegionsYear NationalPovertyRate PercentageofPoorin

UnderdevelopedRegions2015 11.22 21.682016 10.86 21.42017 10.64 20.962018 9.82 20.49

Source:TheNationalSocio-EconomicSurvey(Susenas)andVillagePotentialSurvey(Podes),StatisticsIndonesia

NumberandProportionofJKNMembershipYear Proportionof

JKNMembership

CategoriesPoorandNear-PoorasBenefitBeneficiaries

FormalWorkers

InformalWorkers

2013 45.6 90 21 52014 46.54 95 26 152015 53.14 98 38 202016 60.55 109 41 262017 66.65 120 49 352018 75.88 133 51 37May2019

81.51

Source:SocialSecurityOrganizingBody(BadanPenyelenggaraJaminanSosial/BPJS)

NumberofPKHBeneficiariesandBudgetAllocationforPKHYear Beneficiaries(‘000families) BudgetAllocation(billionIDR)2007 500 8432008 642 9822009 720 1,1002010 816 1,3002011 1,100 1,6102012 1,500 1,5682013 2,400 2,9512014 2,800 4,4502015 3,500 5,5802016 6,000 7,7962017 6,200 11,3402018 10,000 17,1002019 10,000 34,300

Source:MinistryofFinance(StateBudget2019)

269

ProportionofHouseholdsasPKHBeneficiariesbyIncomeQuintileYear IncomeQuintile

1 2 3 4 5 6 7 8 9 102014 8.8 5.3 3.5 3.1 2.6 1.4 1.4 0.7 0.2 0.22018 20.6 16.7 13.8 11.1 8.7 6.5 4.8 3.1 1.0 0.3


ProgressofVillageDevelopmentYear VillageDevelopmentStatus

Underdeveloped Developing Independent2014 19,750(26.81%) 51,026(69.26%) 2,894(3.93%)2018 13,232(17.96%) 54,879(74.49%) 5,559(7.55%)

Source:VillagePotentialSurvey(Podes),StatisticsIndonesia

AverageEconomicGrowthinUnderdevelopedRegionsYear EconomicGrowthinUnderdeveloped

Regions2011 6.412012 6.332013 6.252014 5.892015 6.532016 5.462017 5.312018 6.47

Source:TheNationalSocio-EconomicSurvey(Susenas)andVillagePotentialSurvey(Podes),StatisticsIndonesia

ProportionofPopulationLivingBelow50%MedianIncome(Expenditure)(%)Year ProportionofPopulationLivingBelow

50%MedianIncome

2000 4.76

2001 4.44

2002 5.36

2003 5.27

2004 5.84

2005 7.69

2006 8.68

2007 8.98

2008 8.81

2009 8.18

2010 10.69

2011 10.09

2012 9.51

270

Year ProportionofPopulationLivingBelow

50%MedianIncome

2013 8.69

2014 9.03

2015 10.17

2016 11.72

2017 12.8

2018 12.63Source:TheNationalSocio-EconomicSurvey(Susenas),StatisticsIndonesia

Proportion of Population Living Below 50% of Median Income, by Gender andUrban-RuralYear Gender Location

Male Female Urban Rural2016 11.36 12.05 7.92 15.742017 12.44 13.16 8.95 17.132018 12.31 12.95 8.4 17.74


ProportionofPopulationLivingBelow50%ofMedianIncomebyDisabilityStatusYear DisabilityStatus

Disability Non-Disability2018 14.17 12.23


ProportionofSocialSecurityforWorkersMembersandMembershipoftheSocialSecurityforWorkers(inmillion)Year ProportionofSocial

SecurityforWorkersMembership

CategoryofWorkersWage

WorkersNon-WageWorkers

ConstructionWorkers

2008 11.48 8.01 0.13 3.632009 13.18 8.45 0.20 5.172010 13.03 9.59 0.18 4.332011 13.98 10.31 0.19 4.832012 16.40 11.25 0.46 6.462013 16.47 12.20 0.42 5.632014 17.20 13.07 0.55 6.102015 16.79 14.04 0.29 4.952016 19.11 14.57 1.38 6.682017 21.68 16.07 1.71 8.462018 24.56 19.43 2.39 8.64Mar2019

19.37 2.38 8.77

Source:SocialSecurityOrganizingBody(BadanPenyelenggaraJaminanSosial/BPJS)

271

GOAL11.SUSTAINABLECITIESANDCOMMUNITIES

TheProportionofHouseholdsLivinginAdequateHousingin2015-2018

Year Theproportionofhouseholdslivinginadequatehousing(percent)

2015 34.242016 37.22017 36.582018 38.3


GOAL12.RESPONSIBLECONSUMPTIONANDPRODUCTION

TheNumberandLevelofComplianceofCompaniesthatFollowTheProper,Year2002-2016

Year CategoryBlack Red Blue Green Gold LevelofObedience

(Percent)2002-2003 0 20 52 8 0 602003-2004 22 64 99 9 0 562004-2005 41 116 182 21 0 562006-2007 11 73 305 45 0 812008-2009 32 118 385 40 1 742009-2010 47 154 433 54 2 712010-2011 48 233 603 106 5 722011-2012 79 295 805 119 12 712012-2013 17 551 1099 113 12 612013-2014 21 516 1224 121 9 722014-2015 21 529 1406 108 12 742015-2016 3 284 1422 172 12 85


NumberofCompaniesthatApplySNIISO14001Certificationin2010-2017

YearNumberofcompanies

thatapplySNIISO14001certification

2010 10282011 8732012 10352013 15582014 16442015 22392016 20012017 2197

Source:https://isotc.iso.org/livelink/

272

GOAL13.CLIMATEACTION

TheImpactofNaturalDisasters2010–2017

Year

Indicator

AverageofDeaths&MissingPersonsper100.000Population

NumberofDirectlyAffectedPersonsAttributedtoDisastersper

100.000Population

ValueofEconomicLosses

(inMillionRupiah)

2010 0.8 862.08 11,898,1152011 0.18 319.5 5,047,1862012 0.13 410.63 5,255,7672013 0.21 872.22 9,191,0162014 0.24 604.02 7,036,7772015 0.11 415.62 2,647,3332016 0.22 1436.33 7,091,3972017 0.14 2527.92 4,742,405


TheIndonesianDisasterRiskIndex2015–2018

Year TheIndonesianDisasterRiskIndex(IRBI)

2015 169.42016 1492017 142.22018 128.8


BaselineValueandCumulativeEmissionPotential2010–2017

Year BaselineCumulative(tonsofCO2e)

CumulativeEmissionPotential(tonsofCO2e)

2010 1,334,000.00 1,103,670.562011 2,854,000.00 2,383,913.032012 4,424,000.00 3,575,658.572013 6,033,000.00 4,898,677.432014 7,703,000.00 6,096,406.732015 9,406,000.00 7,596,380.462016 11,170,000.00 8,687,949.382017 13,030,000.00 10,097,846.68

Source:RAN-GRKSecretariatoftheMinistryofNationalDevelopmentPlanning/Bappenas

273

BaselineValueandAnnualEmissionPotential2010–2017

Year AnnualBaseline(tonsofCO2e)

AnnualEmissionPotential(tonsof

CO2e)

GHGemissionreduction(%)

2010 1,334,000.00 1,103,670.56 172011 1,520,000.00 1,280,242.47 162012 1,570,000.00 1,191,745.54 242013 1,609,000.00 1,323,018.86 182014 1,670,000.00 1,197,729.31 282015 1,703,000.00 1,499,973.72 122016 1,764,000.00 1,091,568.92 382017 1,860,000.00 1,409,897.30 24


BaselineValueandActualIntensityEmission2010–2017

Year Baseline(tonsCO2e/billionrupiah)

ActualIntensityEmission(tonsCO2e/billionrupiah)

2010 0.68 0.492011 0.61 0.542012 0.65 0.472013 0.64 0.492014 0.66 0.422015 0.61 0.52016 0.56 0.342017 0.56 0.41


GOAL14.LIFEBELOWWATER

MarineProtectedAreas,Year2015-2018Year Marineprotectedareas(MillionHa)2015 17.32016 17.92017 19.142018 19.3

Source:MinistryofMarineAffairsandFisheries

GOAL15.LIFEONLAND

ProportionofForestandLandCoverin2011-2017Year Proportionofforestandlandcover(Percent)2011 52.222012 51.972013 51.592014 51.38

274

Year Proportionofforestandlandcover(Percent)2015 50.782016 50.452017 50.18


GOAL16–PEACE,JUSTICEANDSTRONGINSTITUTIONS

NumberofActivitiesandPeopleReceivedLegalAidServices inIndonesia,2016-2018

Year Non-Litigation(Activities)

Litigation(Individual)

2016 1188 80052017 3255 149812018 78557 18733

Source:BPHN

Proportion(%)ofBirthRegisteredByAgeGroupandSesinIndonesia,2014-2018

Year AllChildren

Q1+Q2All

ChildrenUnder-5 Q1+Q2

Under-5 Under-1Q1+Q2Under-1

2014 77,71 68,9 71,23 62,62 53,7 47,252015 79,92 71,9 72,65 64,45 53,6 46,32016 81,68 74,3 72,54 64,36 50,9 43,052017 83,33 76,7 73,18 65 53,8 44,252018 83,55 77,4 71,92 64,45 51,8 43,95


Proportion (%) of Birth Registered Among Under-1 Populatiobn by Ses InIndonesia,2014-2018

Year Under-1 Q1+Q2Under-1

2014 53,7 47,252015 53,6 46,32016 50,9 43,052017 53,8 44,252018 51,8 43,95


275

Proportion(%)ofBirthOwnershipAmongUnder5YearsbySesInIndonesia,2014-2018

Year Under-5 Q1+Q2Under-5

2014 71,23 62,622015 72,65 64,452016 72,54 64,362017 73,18 652018 71,92 64,45


Distribution(%)ofBirthCertificateDeficiencyforUnder-5PopulationperSesinIndonesia,2014-2018

Year Poorest Q2 Q3 Q4 Richest

2014 34,2 25,7 19,2 13,6 7,42015 33,4 26,7 19,5 13 7,52016 35,1 25,4 18,9 13,5 7,22017 35,8 25,5 19,5 13 6,22018 34,7 24,7 19 14 7,6


NumberofLegalAidReceiver,2013-2017

YearNumberofLegalAidReceiver

2013 10402014 33072015 65332016 38,4532017 49,788

Source:BPHN

HumanRightsViolationCasesReported,2015-2018

Year

NationalCommissiononHumanRights

NationalCommission

AntiViolenceAgainstWomen

MinistryofLawandHumanRights

2015 8,249 1,248 6582016 7,188 1,353 n/a2017 5,387 1,301 n/a2018 6,069 1,234 n/a

Source:NationalCommissiononHumanRightsandMinistryofLawandHumanRights

276

ScoreofIndonesianDemocracyIndex,2014-2017

YearIndonesianDemocracyIndex

DemocraticInstitutionIndex

CivilLibertyIndex

PoliticalRightsIndex

2014 73.04 75.81 82.62 63.722015 72.82 66.87 80.3 70.632016 70.09 62.05 76.45 70.112017 72.11 72.49 78.75 66.63


IndonesiaAnti-CorruptionBehaviorIndex,2014-2018

Year IndonesiaAnti-CorruptionBehaviorIndex

2014 3.612015 3.592016 n/a2017 3.712018 3.66


PrimaryGovernmentExpendituresasaProportion(%)ofTheOriginalApprovedBudget,2014-2017

Year

PrimaryGovernmentExpendituresasaProportionofTheOriginalApproved

Budget

2014 94.72015 91.052016 89.52017 94.1

Source:MinistryofFinance

Percentage(%)ofUnqualifiedOpinionoftheMinistriesandLocalGovernmentFinancialReport,2014-2017

YearLevelofAdministration

Nationallevel

Provinciallevel

City/Municipalitylevel

Districtlevel

2014 58 76 60 412015 65 85 65 542016 84 91 77 662017 91 97 86 72

Source:SupremeAuditBoard(BPK)

277

Percentage(%)ofGovernmentMinistriesandLocalGovernmentthatcomplywiththeLawonPublicService,2015-2018

Year

LevelofAdministrationNationallevel

(Ministry)

Nationallevel(Agency/Body)

Provinciallevel

City/Municipalitylevel

Districtlevel

2015 27.27 20 9.09 5,26 4.692016 44 67 39.39 29.09 17.652017 35.17 33.33 27.27 33.33 12.152018 55.56 25 62.5 36.73 31.66

Source:Ombudsman

Percentage(%)ofWomenAssumingtheDecision-MakingPositionsinGovernmentInstitutions,2014-2018

YearLevelofEchelon

EchelonI EchelonII

2014 20.66 16.392015 n/a n/a2016 13.81 12.552017 24.76 15.472018 14.43 13.06

Source:NationalEmploymentAgency(BadanKepegawaianNasional/BKN)

GOAL17–PARTNERSHIPFORTHEGOALS

ComparisonofTaxRatiosamongNeighboringCountries

YearCountries(%)

Indonesia Thailand Cambodia Singapore Malaysia Philippine

s2018 10,3 15,7 15,3 14,3 13,8 13,7

Source:TheMinistryofFinance

Non-OilandGasExportGrowth,2010-2018

Year Non-OilandGasExportGrowth(%)

2010 33.082011 24.882012 -5,542013 -2,042014 -2,642015 -9,71

278

Year Non-OilandGasExportGrowth(%)

2016 0,182017 15.952018 6.35

Source:TheMinistryofTrade

TheWeightedMeanofTariffRatesinSixPartnerCountriesofFTAMembers2015-2018

YearTheWeightedMeanofTariffRatesinSixPartnerCountriesofFTAMembers

2015 9.312016 7.932017 6.092018 4.38

Source:TheMinistryofTrade

TheRatioRemittance,2010-2018

Year TheRatioRemittance

2010 0.892011 0.842012 0.82013 0.952014 0.982015 1.132016 0.942017 0.792018 0.86

Source:CentralBankofIndonesia

DebtServiceRatio,2010-2018

Year DebtServiceRatio

2010 17.492011 12.482012 17.282013 18.432014 23.592015 30.572016 35.352017 25.542018 24.08

Source:CentralBankofIndonesia

279

Percentage(%)ofNationalOpticalFiberBackbone,2015-2018

YearPercentageofNationalOpticalFiber

Backbone

2015 77.822016 82.492017 86.582018 92.99

Source:MinistryofTelecommunicationandInformatics

BroadbandAccessPenetration,2014-2017

Year BroadbandAccessPenetration

2014 1.332015 1.542016 2.012017 2.41

Source:MinistryofTelecommunicationandInformatics

Proportion(%)ofIndividualsUsingtheInternet,2010-2018

YearProportionofIndividualsusingthe

Internet

2010 17.62011 22.72012 25.72013 33.02014 34.92015 43.12016 51.32017 54.82018 64.8

Source:IndonesianInternetServiceProviderAssociation(AsosiasiPenyediaJasaInternetIndonesia/APJII)

ConsumersWhoUseBPSDatainNationalDevelopmentPlanningandEvaluation,2016-2018

YearConsumersWhoUseBPSDatainNationalDevelopmentPlanningandEvaluation

(%)2016 20,462017 9,242018 50.36


280

Number of External Visitors Who Access Statistical Data and Information through'Website',2016-2018

Year

NumberofExternalVisitorswhoAccessStatisticalDataandInformationthrough

'Website'

2016 1,525,7662017 1,727,4502018 2,322,354


Percentage(%)ofBPSConsumerSatisfactionRateofStatisticalDataQuality,2016-2018

YearPercentageofBPSConsumerSatisfaction

RateofStatisticalDataQuality

2016 89.302017 96.612018 97.74


Percentage(%)ofConsumersUsingBPSStatisticsDataandInformationasMainReference,2016-2018

Year

PercentageofConsumersUsingBPSStatisticsDataandInformationasMain

Reference

2016 91.352017 87.052018 86.91


NumberofStatisticsandComputerAdministratorinLineMinistries,2016-2018

YearNumberofStatisticsandComputerAdministratorinLineMinistries

2016 3,7282017 4,9132018 5,602


281

Percentage (%)of LineMinisterhaving Statistics andComputerAdministrators,2017-2018

YearPercentageofLineMinisterhaving

StatisticsandComputerAdministrators

2017 592018 67


NumberofKSSTActivities,2014-2018

Year NumberofKSSTActivities

2014 262015 452016 512017 592018 59


TypesofKSSTProgram,2014-2017

Year

NumberofKSSTActivities

Training

Workshop-Seminar

ExpertDispatc

hScholarship-Internship

Multi-eventactivitie

s

Knowledgesharing

2014 63 7 15 7 8 -2015 51 12 12 2 19 42016 49 23 10 4 13 22017 59 14 13 2 12 -


KSSTFinancing(billionRupiah),2014-2018

Year KSSTFinancing(billionRupiah)

2014 79.62015 110.52016 742017 83.32018 105.6


VOLUNTARY NATIONAL REVIEWS (VNR) · Minister of National Development Planning / Head of National...

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