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Extension of the Research Facility on Inequalities in Indonesia
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Increasing inequality, climate change and the deterioration of marine ecosystems are all challenges for Indonesia, which has experienced growth since its integration into globalization. To address these multiple issues, the Extension of the EU-AFD Research Facility on Inequalities supports the Indonesian government in its policy of developing marine protected areas and in analyzing the social impacts of this policy. In parallel, it cooperates with local research centers and national statistical office to product a diagnostic on inequalities in Indonesia.
Context
Indonesia has benefited from its integration into globalization with a significant increase in the value of the human development index (HDI) and a significant decrease in the number of people living below the poverty line. However, its economic growth has not been inclusive, as evidenced by the rapid increase in wealth inequality in the country. With a Gini coefficient of 0.38 in 2019, Indonesia has higher levels of inequality than other Southeast Asian countries in the same income group.
As an archipelagic country, Indonesia depends heavily on the fisheries sector and on the quality of its marine ecosystem. However, the latter is seriously threatened by climate change, which is causing the deterioration of the country's coastal ecology, of the livelihoods and of food security for a part of the Indonesian population. Indeed, changing weather patterns and warming oceans are expected to lead to a 20% decrease in Indonesia's marine fisheries production by 2055, with major socio-economic consequences for a large proportion of the population. Beyond climate change, other factors also threaten marine ecosystems and resource exploitation: overfishing, marine pollution, habitat destruction, etc.
To address this issue, Indonesia has introduced a plan to develop marine protected areas (MPAs) with the aim of promoting the conservation of marine ecosystems by restricting all human activities in designated areas. This plan, established for the period 2020-2024, is part of the country's 6th Development Programme and presents benefits for both environmental sustainability and reducing inequalities.
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Objectives
Preliminary research and workshops conducted in partnership with local research centers and the AFD and EU agency in Indonesia have effectively demonstrated the value of marine protected areas in reducing economic, access, gender and health inequalities. While increasingly part of marine protected areas (MPAs) objectives, the social impacts of protected areas have seldom been assessed. Yet, understanding the impact of conservation interventions on people is also central for seeking biological objectives.
MPAs are a driver of inequalities in communities relying heavily on marine resources, and a powerful tool to help reduce them. While being an important aspect of the well-being of the people involved and of the success of MPAs, inequality assessments and metrics are currently largely absent in the design, implementation and management of MPAs.
As part of the Extension of the EU-AFD Research Facility on Inequalities, this research projects aims at a deeper understanding of the inequality dynamics in MPAs in Indonesia, drawing upon existing data and specific case studies. It should help us gain better knowledge of how inequalities influence biological and social outcomes in MPAs, and bring insights on how to integrate inequality assessments and indicators in existing MPA policies in the country, at every level of governance.The main outcome of this project is a toolbox that will bring together policy recommendations and insights from the research, to help implement training and capacity building activities in the corresponding governance entities.
In addition, an analysis of the overall situation of inequality in Indonesia is necessary to understand its dynamics and to develop appropriate policy responses. To this end, a diagnostic on inequality in Indonesia will comprehensively assess inequality in the country, not only through monetary indicators (income or expenditure), but also through social assets, such as access to education, health, water and sanitation, or employment.
Projects
In order to identify and address the challenges of inequalities and climate change, the Extension of the EU-AFD Research Facility on Inequalities, in partnership with local research:
How do inequalities influence biological and social outcomes in MPAs in Indonesia? The Extension of the EU-AFD Research Facility on Inequalities program sought to answer this question in collaboration with SMERU to integrate inequality assessments and indicators into existing MPA policies in the country at all levels of governance.
This project first went through a scoping phase which enabled to better understand the role of MPAs and its link to inequalities. It then aimed to develop a framework for analyzing inequalities and their dynamics in MPAs in Indonesia, and a toolbox for mainstreaming inequalities in the design, implementation and management of MPAs. It has also fed into the policy dialogue conducted by the EU and AFD on marine resource management and environmental protection.
What would be the impact of a carbon tax policy on poverty and inequality in Indonesia? How can we design effective policies that simultaneously meet environmental and distributive objectives?
In partnership with LPEM, the EU-AFD Research Facility on Inequalities worked on adapting the CEQ Institute framework to understand the distributional impact of actual and potential carbon prices in Indonesia, as well as potential mitigation options.
How to effectively reduce inequality in Indonesia? To answer this question, the Extension of the EU-AFD Research Facility on Inequalities worked with the local research center LPEM and the national statistical office BPS to produce a diagnosis that is essential to guide policy interventions towards reducing inequalities. This project is intended to be the basis for launching a national dialogue about inequality and stimulate policy interventions to overcome inequality.
Events
Several events have been held to present and disseminate the research findings:
The official launch of the report took place on July 23, in Jakarta, in the presence of AFD and the EU. The presentation was led by Prof. Cathal O’Donaghue (University of Galway) and Rus’an Nasrudin (Universitas Indonesia). The report was discussed by representatives from the Ministry of Finance, the Ministry of Energy and Mineral Resources, and the State Electricity Company PLN.
At the request of Indonesia’s Ministry of Marine Affairs and Fisheries (KKP), a five-day pilot training was delivered by SMERU for managers of national and local Marine Protected Areas (MPAs). The training introduced the “Toolbox of Mainstreaming Welfare Improvement of the Poor and Inequality Reduction in Marine Protected Area Management”, developed by SMERU. This practical guide provides ready-to-use tools to integrate poverty and inequality reduction into MPA governance processes – including legal framework development, participative planning and budgeting, networking, and monitoring & evaluation. The toolbox is available in Bahasa and will soon be accessible online to all MPA managers and other stakeholders interested in marine conversation.
Recognizing the importance of regional perspectives and local context in understanding inequality, LPEM, in partnership with AFD and the EU, organized a local dissemination of the Multidimensional Inequality Diagnostic for Indonesia in four provinces of the country outside Java Island: Central Sulawesi, Bengkulu, East Kalimantan, and Papua. Each province hosted two sessions:
- The first session was designed for local government officials, NGOs, experts, and academicians. This three-hour program included a presentation from the LPEM team, feedback from pre-selected discussants (comprising local government representatives and academicians), and a participant discussion.
- The second session targeted university students and academicians from local universities, focusing on knowledge-sharing regarding the technical aspects of the Inequality Diagnostic Report's formulation. This session also gathered insights and perspectives from local students to enrich the understanding of inequality dynamics at the local level. A detailed report on this regional campaign will be published soon.
The national dissemination event of the Multidimensional Inequality Diagnostic Report for Indonesia took place on November 14th, 2023, in Jakarta. This event marked the official launch of the report and was attended by high-level representatives from the Government of Indonesia, international development partners, academics, and civil society organizations. During the event, key findings from the inequality diagnostic were presented, followed by panel discussions addressing policy responses and potential pathways to reducing inequality in Indonesia.
In collaboration with the Provincial Government of East Nusa Tenggara (NTT), SMERU organized Forum Pembangunan Daerah 2023 (2023 FPD), or Regional Development Forum, with the theme “Inclusive and Sustainable Economic Development and Poverty and Inequality Reduction in East Nusa Tenggara”, held at the NTT Governor’s Office Auditorium. The 2023 FPD aims to support the Provincial Government of East Nusa Tenggara, district/city governments in NTT, as well as other multiple stakeholders to improve the quality of public policies in formulating and implementing inclusive and sustainable development strategies as well as reducing poverty and inequality. During the forum, one AFD representative has presented the EU-AFD Research Facility on Inequalities and key takeaways of the SMERU study on MPA governances were shared.
Held on July 12, this event will focus on a SMERU Institute quantitative and qualitative analysis led in the framework of the Extension of the Research Facility on inequalities.
This study explores the factors explaining welfare disparities among the costal communities and the potential for alternative livelihoods, and discusses the policies and governance of maritime development and conservation in Indonesia.
Link of the replay here.
These two workshops have been held on 2 and 3 september 2021 and were an opportunity to discuss on the research document on the benefits of marine protected areas in fighting inequality and fostering environmental sustainability in Indonesia.
This event aimed to use research findings to inform the design and implementation of policies at the intersection of marine protection and inequality reduction in Indonesia.
Find out more about the research projects
Harnessing the benefits of inequalities reduction in marine protected areas in Indonesia
Completed
2022 - 2023
Other countries supported by the Extension of the Research Facility on Inequalities
Event
Bridging Divides: Evidence-Based Policies for Inequality Reduction and Sustainable Development
International conference of the EU-AFD Research Facility on Inequalities