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Combining regional growth model and integration of financial institution model, this paper evaluates whether intermediary development influences growth in Indonesia. Recent research has proved that not only banks development influence economic growth positively but also its exogenous components.However, there are several different assumptions during adopt this model in Indonesia. Especially regional approach is differing than national approach in growth model. The point is the existence of intermediary integration across region whit causes the economic agent move freely within a nation.The data show that integration of financial intermediation was not always associated with economic growth. Only four of twenty six provinces which proved strong influence of financial intermediation on economic growth. Labor condition and average annual wages are not exogenous variables which explain growth due to financial intermediation in Indonesia. At least during 1987-1998.

The Coronavirus Disease 2019 (Covid-19) pandemic creates both the demand and supply shocks problem that may affect the households’ food insecurity.  Among mechanisms, it ranges from the limited physical access to food due to social distancing to the drop in economic access to food due to (partial) lockdown. This study aims to lay out an early warning assessment of the food security situation in Indonesia amidst the Covid-19 outbreak. We use the cartogram analysis which visualize the geographical features throughout the Indonesia archipelago, both in the small and big island setting. The analysis involves the use of both the simple score and latent measurement-based scale of the Rasch model for the food insecurity based on the Susenas data from 2017-2019. The finding reveals that there existed a variation of the household proportion that suffers from severe food insecurity across the Indonesia archipelago. The more eastern the island, the worse the measure is. Papua and Maluku suffer more from such condition compared to the other big islands.  As the government has applied any containment measures, the surge in Covid-19 cases may potentially worsen both the existing households under severe food insecurity and even create new households under such conditions.

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The presence of ex-ante moral hazard could undermine the potential gain from expanding health insurance coverage in developing nations. To test the proposition, this study utilizes a nationally representative longitudinal survey with Indonesia’s health insurance for poor policy in 2014 as the quasi-experimental case study. The country represents developing nations that undergo a massive and rapid expansion of health insurance coverage. The empirical approach combines a matching and difference-in-differences method to obviate potential bias of the selectivity nature of health insurance provision and time-invariant unobserved factors. The findings suggest the presence of ex-ante moral hazard in the form of the less people using trash cans associated with the introduction of the subsidized health insurance premium. The results add empirical findings of a negative side effect of expanding health insurance coverage in developing nations.

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This study revisits the energy-happiness paradox hypothesis using the context of a developing nation. We used Indonesia as a case study, a unique archipelagic country with sparse subnational energy infrastructure, leading to the persistent regional energy access gap. We employed an instrumental variable technique to obviate conventional bias in the happiness regression. The model utilised a newly available national-level household survey on life satisfaction and historical data on digital maps of Indonesia’s electricity infrastructure conditions in 1985. Unlike the phenomena known as the energy-happiness paradox found mainly in the developed countries that suggest the null relationship between having energy access and people’s happiness, our finding reveals a positive effect of electricity access on people’s happiness. We also show that the mechanism in which the effect operates is through individuals’ satisfaction with housing conditions. The heterogeneity analysis shows that the impact of electricity access on happiness is more prominent in the lagging region. It justifies the placed-based policy strategy by the government in developing countries for expanding electricity access in favour of disadvantaged areas.