TOWARDS A TRULY PARTICIPATIVE AND INCLUSIVE GROWTH

IN INDONESIAPurwo SantosoJoash Tapiheru

The REVIEW• Assumption: poverty alleviation

structurally constrained.• Focus: How to deal with structural

challenge to understand how policy innovation works for inclusive development • Context: (1) Archipelagic country;

(2) Decentralized governance.• Method: Cases-based.

iid

3

Rede

fine

the

polic

y

mission

s

Sensitivity the context of policy

Policy Content

Policy Proces

s

Policy Context

Refine the policy

instruments

To ensure every ministry reorient its policy Pro-poor policy

Case: Transport policy

Policy reframing: Pro-poor policy

Public Service Reform: Health Insurance Scheme

• Respect to citizenship: Administrative challenges

• Leverage: public service sector

• Subsidizing the poor• Evolutionary• Scaling up.

PNPMMandiri

(National Program for Society

Empowerment)• Financial and social engeenering:• Evolutionary; Scaling up• Main instrument: money (for

revolving fund)

• Part from larger scheme of conflict resolution• The use of ‘special autonomy

fund’• Prone to politization by local

elite• Unable to match the challenge

of social engeeningRESPEK(Modified version of PNPM for Papuans

Accomodation to Street Vendors

Interest

Accses to public space market placeResponse to the local government to govern

Local leadersip

CONCLUSIONS• Potentials for Innovative Inclusive

Development are available in Indonesia, but unconsolidated.

• Inclusivity: a matter of innovative interpretation of public, and public service provisions into policies in Indonesian context.

• Three ingredients: (1) strong leadership, (2) well-grounded policy framework; and (3) transforming public administration.

RECOMMENDATION• Move beyond public service provision

!• Do not exaggerate the role of money.• Enhance sense of citizenship within a

reasonable administrative and technocratic arrangement.

• Encourage leaders to innovate, equip them with broader but manageable policy framework; and then, replicate great initiatives through contextual and horizontal learning.