abstract: 'The arrival of a new year has brought with it an increased focus on

  Indonesia''s 2014 legislative and presidential elections. While voters

  may be disillusioned with established political figures, a strong

  presidential candidate has yet to emerge. Many voters appear to yearn

  for an experienced and uncorrupt leader with new and proactive policies,

  which is why Jakarta''s new governor, Joko Widodo, is being viewed as a

  potential candidate. The Constitutional Court has made two major,

  controversial rulings in recent months: the first concerned the upstream

  oil and gas regulator BPMigas, the second the international-standard

  pilot-project schools (Rintisan Sekolah Bertaraf Internasional, RSBIs).

  The Court ruled both institutions unconstitutional and called for their

  immediate disbandment. In 2012, Indonesia''s year-on-year economic growth

  slowed slightly, to a still healthy 6.2\%, owing to continued weak

  global demand for its exports and a contraction in government

  expenditure. In contrast, foreign direct investment and portfolio

  investment were particularly strong, with respective increases of 25\%

  and more than 142\%. At 4.3\%, inflation for the 2012 calendar year

  still remains well within the government''s and Bank Indonesia''s

  expectations. However, inflation expectations are high for 2013, owing

  to likely reforms to energy subsidies; the expected effect of bad

  weather on food prices; and increases in minimum wages, which attracted

  attention in 2012 because of their magnitude and their apparent

  disparity among regions. Concerns also exist that these rises in minimum

  wages will hamper Indonesia''s international competitiveness and could

  discourage investment in labour-intensive industries. Minimum-wage

  policy is also controversial because of doubts about its relevance to

  the genuinely poor sections of society those in informal employment or

  with primarily subsistence income, who constitute a large proportion of

  the population. Indonesia has experienced a steady increase in income

  inequality in the last decade, indicating that the benefits of strong

  economic growth have not been shared equally. Potential reasons for this

  increasing inequality relate to labour-market segmentation amid a

  growing middle class, weak institutional foundations, and

  commodity-driven growth. It appeared in 2012 that Indonesia has also

  been one of the world''s poorest performers in HIV/AIDS prevention in

  recent years. While prevalence rates are low, the number of new HIV

  infections in 2011 was more than four times that of any other South

  Asian or Southeast Asian country, and the infection rate among the

  working-age population has risen by more than 25\% since 2001. Infection

  rates among high-risk groups are also alarmingly high compared with

  those of other Southeast Asian countries. Targeted prevention, treatment

  and support programs among these groups are paramount.'
affiliation: 'Cornwell, K (Corresponding Author), Monash Univ, Melbourne, Vic, Australia.

  Cornwell, Katy, Monash Univ, Melbourne, Vic, Australia.

  Anas, Titik, Ctr Strateg \& Int Studies, Jakarta, Indonesia.'
author: Cornwell, Katy and Anas, Titik
author_list:
- family: Cornwell
  given: Katy
- family: Anas
  given: Titik
da: '2023-09-28'
doi: 10.1080/00074918.2013.772937
eissn: 1472-7234
files: []
issn: 0007-4918
journal: BULLETIN OF INDONESIAN ECONOMIC STUDIES
keywords-plus: INCOME INEQUALITY; MINIMUM-WAGES; EMPLOYMENT; COUNTRY
language: English
month: APR 1
number: '1'
number-of-cited-references: '51'
pages: 7-33
papis_id: 5e22efeb32db48991be7637b97c032d0
ref: Cornwell2013surveyrecent
times-cited: '10'
title: Survey of recent developments
type: article
unique-id: WOS:000316405300002
usage-count-last-180-days: '0'
usage-count-since-2013: '43'
volume: '49'
web-of-science-categories: Area Studies; Economics
year: '2013'