This study analyzes the Indonesian Village Fund (VF) Program by mapping each VF-related activity to all 17 SDGs (Sustainable Development Goals), and then determines an SDG-based VF allocation in 2018, 2019, and 2020. This study used data from all villages in Indonesia and is the most comprehensive study in Indonesia to address the knowledge gap between VF allocation and SDGs by analyzing the distribution of the use of the VF. The objectives of this paper are: (1) to provide the extent of VF usage to provide evidence on whether this utilization was aligned with the targeted SDGs, and (2) to provide information regarding village activities funded by the VF that were linked to each SDG. The results from this analysis can be used to encourage the Government to socialize and provide an understanding of SDGs to village leaders. Moreover, since Indonesia has developed Village SDGs, which are based on national SDG targets and localization of global SDGs to adapt to local culture as well as social and environmental conditions, it is recommended that other developing countries could formulate similar strategies to help achieve their national SDG targets and to develop rural areas in a more targeted way by prioritizing the most relevant issues. The study shares lessons learned from Indonesian experience in managing fiscal policy to more than 70,000 autonomous villages through the village fund program in the last five years.
This study observes the factors affecting the changes of energy intensity in Indonesia and five selected Association of South East Asian Nations (ASEAN) countries during the period particularly measuring its impact during 1997 financial crisis. By employing the Logaritmic Mean Divisia Index, this study summaries that the changes in energy intensity in the ASEAN-6 economies was a result of the changes within industry energy intensity (intensity effect). The intensity effects also provide a proxy measure of energy efficiency activity at the sectoral level. Overall, the general direction of the intensity effect in all ASEAN countries is downward. These decreasing intensity effects show that the trend towards technological changes in ASEAN countries has assisted significantly in increasing energy efficiency. Further, all the ASEAN-6 countries showed a change in the structure index indicates that the structure of economy periodically shifted away from less energy intensive sector to more energy intensive sector.
Indonesia's Balance of Payments for transportation services turned to deficit for past few years. The biggest share comes from deficit on transportation services for freight. This is one reason why the cost for transportation services in Indonesia is very high and at the end it will reduce the national competitiveness. Blueprint for The development of National Logistics System already regulated in Presidential Regulation No. 26 year 2012. The implementation of National Logistics System can create national competitiveness and support the implementation of the Masterplan for Acceleration and Expansion of Indonesian's Economic Development (abbreviated MP3EI). National Logistics system is expected to be operationalized by the logistics service providers, and supported by the availability of adequate logistics infrastructure and reliable. Service providers for all across Indonesia will be needed in order to create connectivity for National Logistic System. Transportation service providers that came from domestic, can reduce the cost of transportation, and it will create national competitiveness for domestic production. The purpose of this study is to identify the appropriate fiscal policy to domestic service providers and to identify the economic impact of the increasing on services from domestic service provider. The methodology used in this research is analysis using Social Accounting Matrix (SAM) that can give an overview the impact of increasing production in one sector to factors of production, institution, and other sector. Economic impact analysis that came from SAM indicates that the increasing production in transportation services sector have an overall positive impact to factor of production, institution and other sector. The results of this research is expected to help policy makers in the field of fiscal policy in designing appropriate policies for domestic transportation service provider and at the end to help reduce the Balance of Payments deficit for transportation services.
Indonesia is the largest producers of palm oil. Along with the increasing demand for renewable energy source, palm oil will turn to be a very important commodity in the future. The palm oil industry will gain more value-added if they export the commodities in processed materials rather than raw materials. On the other hands palm oil industry more likely to export raw material, because there's no incentives for them to export processed materials. Therefore, to give an incentive to palm oil industry, the government of Indonesia should give fiscal incentives to encourage palm oil industry to produce processed materials. The purpose of this study is to identify the appropriate fiscal policy to palm oil industry and to estimate the economic impact due to the implementation of fiscal incentives policy. The methodology used in this research is analysis using Social Accounting Matrix (SAM) that can give an overview the impact of policy implementation to factors of production, an institution such as government and household, and other sectors including palm oil sectors itself. The result of this study that is the proposed fiscal policy in palm oil industry was fiscal incentives in the form of VAT exemption. Economic impact analysis that came from SAM indicates that implementation of the policy has an overall positive impact to factors of production, institution and sector.
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