Informal Economy Seminar: The Trends and Pattern of Indonesian Informal Economy

The main objective of the seminar is to present a preliminary draft of the study in order to clarify the on-going debate with regard to the informal economy and the analysis that needs to be undertaken to not only contribute to the debate but also to inform policy design and implementation.

Background

The ILO is currently undertaking an in-depth analysis and evaluation of the evolution of the informal economy in Indonesia. Such an evaluation is intended to develop a deeper understanding of a major phenomenon: why the process of structural change as embodied in a steady decline in the share of informal employment in the period prior to the 1997 Asian financial crisis has stalled. Indeed, in the wake of the global recession of 2008-2009, the share of informal employment appears to have increased noticeably (by three percentage points) between February 2008 and February 2009. This has happened at a time when the aggregate unemployment rate fell. The analysis and evaluation of the evolution of the Indonesian informal economy is expected to yield policy-relevant knowledge that can feed into the forthcoming medium-term development plan.

Objectives

The main objective of the seminar is to present a preliminary draft of the study in order to clarify:

  • § the on-going debate with regard to the informal economy
  • § the analysis that needs to be undertaken to not only contribute to the debate but also to inform policy design and implementation

Areas to be covered by the seminar

The following areas are expected to be presented, discussed and clarified during the seminar:

§ Identification of a pertinent body of literature that is regarded as having high a degree of policy relevance to the issue of structural change and the informal economy in Indonesia;

§ Existing policy debates and their implications for the informal economy, including macroeconomic trends;

§ Shifts in patterns of international trade in Indonesia, inter-regional and intra-regional trade in Indonesia;

§ Labour market policies and institutions at the national and local levels;

§ Different approaches to extend support and services to the informal economy;

§ Sources of existing data on informal economy and its pro and cons; and

§ Basic presentation of situation of informal economy in Indonesia and identification of emerging challenges for economic and labour market policies.

Main speakers:

§ Prof. Suahasil Nazara of University of Indonesia

§ Dr. Satish Misra from Strategic Asia