This book is the most up-to-date and authoritative work on Indonesias rural non-farm development characteristics and potential. The essays, by experts and well-known specialists in the field, emphasize the changing importance of off-farm income, employment contributions of small enterprises, the role of gender and mobility in entrepreneurial behaviour and the policy implications for rural non-farm enterprises. A unique feature is the use of case studies to provide insights and context for activities. The book is both a summary of current knowledge and a call for new inquiries on this critical theme.

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

This book provides a broad, interdisciplinary overview of the major facets of Indonesia's contemporary agricultural and rural development, while exploring the macro and micro factors that account for uneven development patterns. In assessing the rate and distribution of economic growth within the rural sector of the Indonesian archipelago, the auth

This book integrates the fundamental theories of decentralization and rural development, providing a comprehensive explanation of how they can be successfully implemented to improve the livelihoods of rural communities in Indonesia. The topics addressed in this book include participatory budgeting, social capital, community participation, local capacity development, and poverty alleviation, which are discussed in detail from the perspectives of local politics, public administration, rural economy, and community studies. The multifaceted interrelations between these disciplines are analyzed to formulate a framework identifying the opportunities and challenges involved in formulating guiding principles for the implementation of decentralization. Readers are provided with the necessary intellectual groundwork through theoretical discussions and case studies involving grassroots realities in Indonesian villages. This book is highly recommended for all readers who are seeking an in-depth understanding of modern efforts to effectively implement decentralization in developing countries to promote local democratization, community empowerment, and poverty alleviation.

This volume of essays is intended to honour an exceptional, indeed a unique scholar. Joan Hardjono grew up in Sydney and graduated from Sydney University in the mid-1950s. She majored in English and Geography and like most girls in those years who had managed to complete a tertiary degree, she probably expected to embark on a career as a high school teacher in Australia. But no doubt prompted by the spirit of adventure which she has kept throughout her long career, she decided to go to Indonesia as a volunteer teacher. The scheme which brought young Australian graduates to Indonesia at that time was pioneering; it pre-dated the US Peace Corps and several of the participants went on to distinguished academic careers. On the boat from Australia to Indonesia, she met a young Indonesian called Hardjono, who after participating in the struggle against the Dutch in the late 1940s, gained an engineering degree at the Institute of Technology in Bandung, then as now Indonesia’s leading tertiary institute for the study of engineering and technology. Joan was posted to teach in Semarang, the capital of the province of Central Java, and family legend has it that Hardjono used a borrowed motor cycle to pay her frequent visits, bringing with him Javanese delicacies as gifts. Since the late 1980s, Joan has been busy as a consultant to a number of bilateral and multilateral aid agencies. She has retired as a university teacher, but served for several years as an active member of the advisory board of a Bandung-based research organization, AKATIGA. She has also served since its inception in early 2001 on both the Board of Trustees and the Advisory Board of the Jakarta-based research group, The SMERU Research Institute. The editors are pleased that four chapters in this volume have been contributed by staff of these two institutions. Joan continues to be an active member of the SMERU boards, and in her advisory role, she has always stressed that SMERU should focus on what it does best, namely conducting solid research on the problems of poverty, social protection and unemployment, rather than engaging in policy advocacy. She worked very hard editing the institute’s first international publication, Poverty and Social Protection in Indonesia, which was published by the Institute of Southeast Asian Studies in Singapore in 2011. Joan has often regretted the fact that so few Indonesian social scientists publish internationally, and has assisted a number of scholars over the years to turn their research findings into publishable papers in English-language outlets. Like many Indonesians in her age group, Joan has at times been disappointed that the country’s macroeconomic progress over the last four decades has not yet achieved the elusive goal of a just and prosperous society. To friends, she can be at times very critical of the performance of politicians and senior bureaucrats, both during the Suharto era and subsequently. But she would be the last to deny that some progress has been made. She continues to visit Australia on a regular basis, but Bandung remains her home, and she remains steadfast in her love for, and commitment to, the people of Indonesia.