Research Program

With the challenges facing Indonesian society in poverty reduction, social protection, improvement in social sector, development in democratization processes, and implementation of decentralization and regional autonomy, there continues to be a pressing need for independent studies of the kind that SMERU has been providing. The following are the three main projects under SMERU’s current core research activities:

The Mechanism and Uses of Specific Allocation Fund (SAF) in the Indonesian Decentralization Financing

• Background: Around 75% of regional budget come from central government through balancing fund. The balancing fund aims at closing the fiscal gap and guaranteeing the provision of a minimum standard of services to the people. SAF is used to fill the gap on the provision of basic facilities and infrastructure.
• Research question: What are the sources of problem in organizing, transferring, and utilizing of SAF?
• Research timeline: January-December 2007.
• Methodology: Qualitative approach using in-depth interviews and focus group discussions.
• Targeted audience: National and regional policy makers.
• Output: A national workshop, memorandum, field and research reports.

Chronic Poverty and Household Dynamics

• Background: Given the fact that poverty is dynamics; it is, therefore, important to understand the determinants of household dynamics for falling into, and escaping from, persistent poverty, such as the changes in household composition and related economic capacity (households’ dynamics).
• Research question: What are the implications of household dynamics to duration of poverty, particularly the persistent and chronic poverty?
• Research timeline: April 2007-March 2008.
• Methodology: Quantitative approach using the longitudinal data of Indonesia Family Life Survey (IFLS).
• Targeted audience: Policy makers and academicians.
• Output: A country report of the findings and two working papers on specific issues uncovered by the research.

Improving the Policy and Regulatory Environment for Business in East Nusa Tenggara (NTT)-Indonesia

• Background: The agriculture sector accounts for more than 40% of NTT’s GDRP and absorbs more than 80% of the workforce. A regulatory environment that is conducive to the marketing and trading of agricultural products is therefore central to strengthening the regional economy and improving the welfare of farmers, who are predominantly poor.
• Hypothesis: Regional governments still impose regulations that distort the marketing of agricultural and agro-industrial products, and have hindered economic growth.
• Research timeline: August 2007-July 2009.
• Methodology: Qualitative approach through in-depth interviews, complemented with review of local regulations and licensing arrangements.
• Targeted audience: Local governments, ANTARA-AusAID program, general public.
• Output: Regional workshop, policy memorandum and reports.