What are the current trends and main characteristics of public education spending in Indonesia? Is education spending insufficient? Are expenditures in education efficient and equitable? This study reports the first account of Indonesia's aggregated (national and sub-national) spending on education, as well as the economic composition of education spending and its breakdown by programs. It presents estimations of the expected (average) level of education spending for a country with its economic and social characteristics. This analysis sheds light on the efficiency and equity of education spending by presenting social rates of return by level of education, by assessing the adequacy of current teacher earnings relative to other paid workers and the distribution of teachers across urban, rural, and remote regions, and by identifying the main determinants of education enrollment. It concludes that the current challenges in Indonesia are no longer defined by the need of additional spending, but rather the need to improve the quality of education services, and to improve the efficiency of education expenditures by re-allocating teachers to undersupplied regions and re-adjusting the spending mix within and between education programs for future additional spending in the sector. The study finds that poverty and student-aged labor are also significant constraints to education enrollment, stressing the importance of policies aimed at addressing demand-side factors.

Doing business in the country can be surprisingly complex. In recognition of this and out of a desire to attract investors to the land of her birth, Salz has put together an impressive guide that seeks to demystify the process. John E. Rope a compelling case for anyone considering developing a business in the fourth most populated country in the world. J. W. Bankston The work is less about highlighting the advantages of Investing in Indonesia, than a compendium of requirements. Readers will learn about the steps to, for instance, acquire land or obtain necessary licenses. J. W. Bankston

This book provides a comprehensive analysis of the constraints facing the development of rural non-farm enterprises in Indonesia. Recent years have seen a substantial effort by the Indonesian government to improve the investment climate. To date, much of this effort has focused on the constraints faced by businesses at the national level. However, if Indonesia is to be successful in creating jobs and reducing poverty across the archipelago, this will require improving the investment climate for the 15.7 million micro and small enterprises that employ more than half of all the non-farm workers in the country. This book brings together leading Indonesian and international academics to consider seven key constraints that RNFEs face: labour regulations and practices; infrastructure; competition and marketing; knowledge transfer and technology; access to credit and financial services; local taxation and user charges; and insecurity. In each case the authors draw on the Indonesian Rural Investment Climate Survey, a unique dataset of more than 2,500 RNFEs, to identify the size and nature of the constraints, the way in which they impact upon enterprise growth and the implications for policy. In addition, a key chapter estimates the strength of the linkage between agriculture and non-agricultural activities in rural areas, showing that agricultural revitalization is an essential complement to the development of the non-farm economy. "Understanding the rural investment climate in both slow- and fast-growing economies has taken on new urgency in the wake of the world food crisis. The rural non-farm economy often provides half or more of the income of farm families and is especially important for food-deficit rural households hard-hit by rising food prices. The Indonesian Rural Investment Climate Assessment is the "gold standard" for how to achieve this understanding. It is a delight to see it published and available to a wide audience." - C. Peter Timmer, Visiting Professor, Program on Food Security and Environment, Stanford University; Non-Resident Fellow, Center for Global Development