Exploring Key Policy Challenges Facing Indonesia The Sum Is Greater Than the Parts

The HKS Indonesia Program develops research projects on key policy challenges facing the country. Building upon the Ash Center’s intellectual capital – with faculty who conduct cutting-edge research on democracy, governance, and development – the HKS Indonesia Program explores both how Indonesia can serve as a model to other democratizing countries and how its political and economic institutions can be reformed to ensure that its fledgling democracy endures and thrives. The Program works closely with Indonesian scholars, policymakers, and business leaders to strengthen policy education and research in Indonesia and link Indonesia to regional and global knowledge networks. Its conferences facilitate the dissemination of research results.

The Sum Is Greater Than the Parts: Doubling Shared Prosperity in Indonesia Through Local and Global Integration
Published in 2013, a new report from the Harvard Kennedy School Indonesia Program builds on findings of the 2010 report, From Reformasi to Institutional Transformation: A Strategic Assessment of Indonesia's Prospects for Growth, Equity, and Democratic Governance

From Reformasi to Institutional Transformation
Published in 2010, From Reformasi to Institutional Transformation: A Strategic Assessment of Indonesia's Prospects for Growth, Equity, and Democratic Governance was authored by HKS faculty and staff affiliated with the Ash Center's Rajawali Foundation Institute for Asia. The book was translated by Kompas Publishing Group and sold at Gramedia bookstores in Indonesia under the title Indonesia Menentukan Nasib. The book explores Indonesia's successes and challenges as a new democracy and argues that Indonesia must engage in a thorough process of institutional transformation if it is to shed the legacy of Guided Democracy and the New Order and compete in the new globalized economy. "Indonesia is changing, but most of the dynamic economies of East Asia are changing faster," states the book's authors. "Our main motivation in writing this book was to provide a framework for future research relating to the country's institutions and institutional change."

From Reformasi to Institutional Transformation was authored by HKS faculty and staff Anthony Saich, David Dapice, Tarek Masoud, Dwight Perkins, Jonathan Pincus, Jay Rosengard, Thomas Vallely, Ben Wilkinson, and Jeffrey Williams.

Regulatory Constraints to Financial Inclusion in Indonesia
Published in the December 2011 issue of the Asian Economic Policy Review (Vol. 6, No. 2), the article, “If The Banks Are Doing So Well, Why Can’t I Get A Loan?: Regulatory Constraints to Financial Inclusion in Indonesia,” marks a new era of collaboration between the Center’s faculty and their counterparts in Indonesia. Authors Jay Rosengard, lecturer in public policy at HKS, and A. Prasetyantoko, head of the Institute for Research and Social Service at Atma Jaya Catholic University in Jakarta, argue that Indonesia’s financial sector has two paradoxes: 1) Indonesia has been a global leader in microfinance for the past 25 years, but access to microfinance services is declining; and 2) Indonesia’s commercial banks are liquid, solvent, and profitable, and the Indonesian economy has been doing well over the past decade, but small- and medium-sized enterprises are facing a credit crunch. Although Indonesia is underbanked, most commercial banks have been unresponsive to unmet effective demand. Read more

Research Highlights

David Dapice and Edward CunninghamSquaring the Circle: Politics and Energy Supply in Indonesia.

Rema Hanna, Targeting the Poor: Evidence from a Field Experiment in Indonesia,

Rema Hanna, Involving Communities in Identifying the Poor,

Rema Hanna, Network Structure and the Aggregation of Information: Theory and Evidence from Indonesia,

Jose A. Gomez Ibanez, HKS Case: 1976.0 Jakarta’s Transportation Problems,

Jose A. Gomez Ibanez, 719.0 Financing Indonesia's Roads,

Anuraj Shankar, Maternal Multiple Micronutrient Supplements and Child Cognition: A Randomized Trial in Indonesia