INDONESIA’S ACHILLES HEEL IN THE FIRST DECADE OF THE 2000s: EMPLOYMENT AND LABOUR PRODUCTIVITY IN MANUFACTURING
Abstract
particularly disappointing in the first decade of the 2000s. The work of Anne Booth has
grappled with the nexus between productivity, employment and welfare in Indonesia
and Asia. While she has been especially concerned with these relationships in the
agricultural sector, Anne would be the first to acknowledge that some of the key
relationships cut across sectors. Further, the benefits from agricultural reforms can
only be broadly realized in terms of poverty reduction if better jobs are available
for agricultural workers to move into in manufacturing and services as countries
develop. This article takes up some of the productivity and employment relationships
outside agriculture that are critical to poverty alleviation, focusing especially on labour
regulations, contracts and management systems. It thus touches indirectly on a subject
that has been a focus of many of Anne Booth’s writings on Indonesia since the 1980s.
Keywords: Labour productivity, Labour regulations, Job creation, Manufacturing,
Full Text:
PDFReferences
Books
Moran, T., Graham, E. & Blomström, M. 2005. Does Direct Foreign Investment
Promote Development. Washington, D.C.: Peterson Institute.
Posso, A. 2008. Outward Orientation and Labour Market Outcomes in Asia and
Latin America, PhD Thesis, Australian National University, Canberra.
Purnagunawan, R.M. 2011. Minimum Wages and Labour Market
Outcomes in Decentralized Indonesia: A Case Study from Java. PhD
Thesis, Australian National University, Canberra.
Richmond, C. & Klapper, L. 2010. The Political Economy of Firm Size. Washington,
D.C.: World Bank.
Tjandraningsih, I., Herawati, R.& Suhadmadi. 2010. Praktek Kerja Kontrak dan
Outsourcing Buruh di Sektor Industri Metal. Bandung: AKATIGA Foundation.
Articles and working papers
Alatas, V. & Cameron, L. 2008. “The Impact of Minimum Wages on Employment in
a Low-Income Country: A Quasi-Natural Experiment in Indonesia”. Industrial
& Labor Relations Review. Vol. 61, no. 2: 201-223.
Alisjahbana, A.2009. “Revisiting Indonesia’s Sources of Economic Growth and Its
Projections Towards 2030”. Working paper in Economics and Development
Studies, CEDS, Padjadjaran University, Bandung.
Aswicahyono, H., Brooks, D. and Manning, Chris. 2011. “Exports and Employment
in Indonesia:The Decline in Labor-Intensive Manufacturing and the Rise of
Services”. ADB Working paper 279, Manila: Asian Development Bank.
Aswicahyono, H., Hill, H. & Ardiyanto, D. 2011. “Indonesian Industrialization: Jobless
Growth?”. In C. Manning & S. Sumarto, editors. Employment, Living Standards
and Poverty in Contemporary Indonesia. Singapore: Institute of Southeast
Asian Studies, pp. 113-133.
Aswicahyono, H., Hill, H. and Narjoko, D. 2010. “Industrialisation after a Deep
Economic Crisis: Indonesia”. Journal of Development Studies.Vol. 46, no. 6:
-1108.
Aswicahyono, H. & Manning, C. 2011. “Exports and Job Creation in Indonesia Before
and After the Asian Financial Crisis”. Departmental Working paper 2011-11,
Australian National University, Arndt-Corden Department of Economics.
Athukorala, P. 2006a. “Post-Crisis Export Performance: The Indonesian Experience
in Regional Perspective”. Bulletin of Indonesian Economic Studies.Vol. 42,
no. 2: 177-211.
Athukorala, P. 2006b.“Product Fragmentation and Trade Patterns in East Asia”. Asian
Economic Papers. Vol. 4, no. 3: 1-27.
Athukorala, P. 2009. “Economic Transition and Export Performance in
Vietnam.”ASEAN Economic Bulletin. Vol. 26, no. 1: 96-114.
Basri, M Chatib &Hill, H. 2008. “Indonesia - Trade Policy Review 2007”. World
Economy.Vol. 31, no. 11: 1393-1408
Davis, S. J. & Haltiwanger, J. 1992. “Gross Job Creation, Gross Job Destruction, and
Employment Reallocation”. Quarterly Journal of Economics. Vol. 107, no. 3: 819-863.
Eng, P. van der. 2008. “The Sources of Long-Term Economic Growth in Indonesia:
-2007”. Working paper 499 in Economics and Econometrics, Australian
National University, Canberra.
Fields, G.S. & Wan, H. 1989. “Wage Setting Institutions and Economic Development”.
World Development. Vol. 17, no. 9: 1471-1483.
Liu, Z. 2008. “Foreign Direct Investment and Technology Spillovers: Theory and
Evidence”. Journal of Development Economics, Vol. 85: 176–193.
Manning, C. 2012.“Indonesia’s Turnabout in Employment and Unemployment in
the 2000s: Progress or Not?”. In A. Booth et al., editors. Land, Livelihood,
the Economy and the Environment in Indonesia. Jakarta: Obor Foundation,
-242.
Sjöholm, F. & Lipsey, R.E. 2004. “Foreign Direct Investment, Education, and Wages
in Indonesian Manufacturing”. Journal of Development Economics. Vol. 73:
-422.
Suryahadi, A. et al. 2003. “Minimum Wage Policy and Its Impact on Employment in
the Urban Formal Sector”. Bulletin of Indonesian Economic Studies. Vol. 39,
no. 1: 29-50.
Szirmai, E. 1994. “Real Output and Labour Productivity in Indonesian Manufacturing
-90”. Bulletin of Indonesian Economic Studies. Vol. 30, no. 2: 49-90. Takii,
S. 2005. “Productivity Spillovers and Characteristics of Foreign Multinational
Plants in Indonesian Manufacturing 1990-1995”. Journal of Development Studies.
Vol. 76: 521-542.
Takii, S. & Ramstetter, E. 2005. “Multinational Presence and Labour Productivity
Differentials in Indonesian Manufacturing, 1975-2001”. ICSEAD Working
Paper, Kitakyushu.
Tybout, R. 2000. “Manufacturing Firms in Developing Countries: How Well Do They
Do and Why?”. Journal of Economic Literature. Vol. 38: 11-44.
Wengel, J. ter & Rodriguez, E. 2006. “Productivity and Firm Dynamics: Creative
Destruction in Indonesian Manufacturing, 1994-2000”. Bulletin of Indonesian
Economic Studies. Vol. 42, no. 3: 341-355.
Reports
APO. 2011. Productivity Databook. Tokyo: Asian Productivity Organization.
World Bank. 2011. Productivity Performance in Indonesia’s Manufacturing
Sector. Policy Note 5. Jakarta: World Bank.
Refbacks
- There are currently no refbacks.
