Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

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Head:
Muhammad Hanri, Ph.D

Labour Economics and Migration, Development Economics, Education Economics, Social Protection and Poverty, and Applied Economics.

Social Protection and Labor (SPL)

The research group highlights the importance of worker transformation and skill-development to support economic development and productivity enhancement in Indonesia. Issues of particular interest include developing better information of demand and supply of works, identifying skill-shortages, and understanding various factors in labor market and economic policies, technology, and infrastructure that will affect worker’s productive, adaptive and innovative capacity. The group applies multidisciplinary approaches to provide empirical-based policy discussion with regard to the issues. The research group provides extensive consultancies and research social protection programs & labour market issues. . Our tasks include:

  1. Strategy, analysis, financing and design of programs delivering social safety nets/social assistance in cash transfers and public works programs. Advisory and analytical services on design and delivery of contributory transfers (including old-age pensions, unemployment insurance, and health insurance) and their fiscal sustainability (including budget support).
  2. Analysis, design and delivery of labour market and employment programs (focusing on supply-side interventions and intermediation policies) and policy advice on labour market regulations and interventions.
  3. Strategy, analysis, financing and design of integrated social protection delivery systems (e.g., payments, identification, registries, systems assessments) as underpinnings of effective social programs that can help cope with climatic shocks underpin fiscal reforms.
  4. Evaluation of existing social protection programs. The evaluation includes the economic impact on the micro-level and macro-level (economic growth and employment).

Featured Projects

Here are some of the featured publications from this research study:

Project NameClient NameSummary
AFD (Agence Française de Développement)Multidimensional Inequality Diagnostics
Indonesia, as an archipelagic country with the world's fourth-largest population (more than 270 million inhabitants), has been experiencing a declining trend in inequality over the past decade. However, its inequality levels remain among the highest in comparison to neighboring nations. To ensure sustained economic growth, it is crucial to address individual-level (vertical) and sub-population-level (horizontal) inequality.
The Inequality Diagnostic Report is a product of research and collaboration between LPEM FEB UI, the National Statistics (BPS), and Agence Française de Développement (AFD) aimed to examine the state of multidimensional inequality in Indonesia and identifying challenges in reducing inequality in the society. The report examines inequality through various aspects, not only income inequality, but also labor and gender inequality, education, health, and physical infrastructure inequality.

Our study found that in the last decade, income inequality in Indonesia has slightly declined, although regional disparity persists. In the labor sector, informal sectors and vocational unemployment remain a major challenge. On a more specific gender-related issue, the labor force participation rate in Women is still low and centered in informal sectors. As such, female workers are relatively more vulnerable in the labor market.
In the education sector, the enrollment rate is improving, but not in pre-primary education. Meanwhile, in the health sector, smoking prevalence is a threat to the already improving access to healthcare due to universal health coverage. Physical infrastructure disparity between regions remains high, including basic infrastructure, such as access to decent drinking water and decent sanitation.

Our study recommends improving social assistance programs to further narrow the multidimensional inequality gap within the country. We also push for measures to be taken to guide economic activities from the informal sector to the formal sector, to reduce economic vulnerability in the society.

Past Research Projects

Here are some of the latest publications from this research study:

Working YearsClient NameProject NameWorking Time (In days)
2023LPDP (Lembaga Pengelola Dana Pendidikan)Evaluasi Dampak Pendanaan Riset LPDP
60
2023BPJS KetenagakerjaanPenyusunan Policy Brief Perlindungan Jaminan Sosial Ketenagakerjaan Bagi Penerima KUR MIKRO
30
2023-2024UNICEF INDONESIAEffectiveness & Efficiency of the Current Social Protection System
180
2023BPJS KesehatanDampak Program JKN terhadap Perekonomian dan Kemiskinan
210
2022BPJS KetenagakerjaanTinjauan Akademis Program dan Pengelolaan JKK120
2023APPNIA (ASOSIASI PERUSAHAAN PRODUK BERNUTRISI UNTUK IBU DAN ANAK)Riset Dampak Kesehatan dan Ekonomi Regulasi Produk Nutrisi dan Pengaruhnya terhadap Status Nutrisi dan Perekonomian
270
2022-2023AFD (Agence Française de Développement)Multidimensional Inequality Diagnostics
180
2022PT. Kilang Pertamina International (KPI)
Dampak Penerapan Harga Gas Khusus untuk PT. Kilang Pertamina Internasional Terhadap Perekonomian Indonesia
90
2022Kementerian Ketenagakerjaan (Kemenaker)Penyusunana Indeks dan Survei Perkembangan Kinerja Program Jaminan Sosial Ketenagakerjaan dalam Rangka Desain dan Evaluasi Program Jaminan Sosial Tenaga Kerja Tahun Anggaran 2022
120
2022-2023BPJS KetenagakerjaanStudi Ekonometri Pengembangan Program JHT
120
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