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Ditya A. Nurdianto
The Australian National University Canberra, Australia
Economics, Econometrics & Finance

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REGIONAL ECONOMIC MODELLING FOR INDONESIA: IMPLEMENTATION OF IRSA-INDONESIA5 Resosudarmo, Budy P.; Yusuf, Arief A.; Hartono, Djoni; Nurdianto, Ditya A.
Journal of Indonesian Economy and Business Vol 26, No 3 (2011): September
Publisher : Journal of Indonesian Economy and Business

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Abstract

Ten years after Indonesia implemented a major decentralisation policy, regional income per capita disparity and excessive rate of natural resource extraction continue to be pressing issues. There are great interests in identifying macro policies that would reduce regional income disparity and better control the rate of natural extraction, whilemaintaining reasonable national economic growth. This paper utilises an inter-regional computable general equilibrium model, IRSA-INDONESIA5, to discuss the economy-wideimpacts of various policies dealing with the development gap among regions in the country, achieving low carbon growth, and reducing deforestation. The results of simulations conducted reveal that, primarily, the best way to reduce the development gap among regions is by creating effective programs to accelerate the growth of human capital in the less developed regions. Secondly, in the short-term, the elimination of energy subsidies and/or implementation of a carbon tax is effective in reducing CO2 emission and producing higher economic growth, while in the long-run, however, technological improvement, particularly toward a more energy efficient technology, is needed to maintain a relatively low level of emission with continued high growth. Thirdly, if reducing deforestation means reducing the amount of timber harvested, it negatively affects the economy. To eliminate this negative impact, deforestation compensation is needed. Keywords: computable general equilibrium, development planning and policy, environmental economics
THE INDONESIAN INTER-REGIONAL SOCIAL ACCOUNTING MATRIX FOR FISCAL DECENTRALISATION ANALYSIS Resosudarmo, Budy P.; Nurdianto, Ditya A.; Hartono, Djoni
Journal of Indonesian Economy and Business Vol 24, No 2 (2009): May
Publisher : Journal of Indonesian Economy and Business

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Abstract

Disparities in development have long been a crucial issue in Indonesia. With regard to the new structure of the Indonesian government, it is of great interest to determine whether Indonesia should further decentralise its budget, and if so, what consequences this would have on the national economy overall. This paper develops a simple economic tool — that is an inter-regional social accounting matrix (IRSAM) multiplier — to analyse the impacts of further decentralising government fiscal policy on regional and national performances.Our simulations show the following. First, reducing gaps among regional economies and boosting the national economy through a higher fiscal transfer strategy might notachieve the same end; i.e. providing a higher transfer to regions that are lagging behind (Sulawesi and Eastern Indonesia) would most likely reduce gaps among regionaleconomies, but might impact negatively on the national economy overall. Second, in general, a more decentralised fiscal system would benefit households in Sulawesi andEastern Indonesia, whereas the same cannot be said for Java-Bali, Sumatra, and Kalimantan. Third, impacts of further fiscal transfers on labour income vary considerably depending on the region and type of labour.Keywords: regional economy, fiscal decentralisation, Social Accounting Matrix
Inter-Island Economic Linkages and Connections in Indonesia Resosudarmo, Budy P.; Hartono, Djoni; Nurdianto, Ditya A.
Economics and Finance in Indonesia Volume 56, Number 3, 2008
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (28.873 KB) | DOI: 10.47291/efi.v56i3.27

Abstract

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Co-Authors Arief A. Yusuf Budy P Resosudarmo Budy P. Resosudarmo Djoni Hartanto Djoni Hartono