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6.1 - Comparison of estimated ideal cost of 9 years education with regional budget 596.2 - Per capita general allocation (DAU) and HDI 60HUMAN DEVELOPMENT INDICATORS AND INDICESThe concept and measurement of human Development 70What do the human development indices reveal? 75Technical workshop on human development indicators 85Changes in names due to the formation of new provinces and districts 95Tables1. Human Development Index (HDI) by Province, 1999 and 2002 972. Gender-related Development Index (GDI) by Province, 1999 983. Gender-related Development Index (GDI) by Province, 2002 994. Gender Empowerment Measure (GEM) by Province, 1999 and 2002 1005. Human Poverty Index (HPI) by Province, 1999 and 2002 1016. Human Development Index (HDI) by District, 1999 and 2002 1027. Gender-related Development Index (GDI) by District, 1999 1108. Gender-related Development Index (GDI) by District, 2002 1179. Gender Empowerment Measure (GEM) by District, 1999 12510. Gender Empowerment Measure (GEM) by District, 2002 13211. Human Poverty Index (HPI) by District, 1999 and 2002 14012. Health Conditions by District, 2002 14813. School Attendance by District, 2002 15614. Housing Conditions by District, 1999 and 2002 16415. Economic Performance by District, 1999 – 2000 17216. Labour Force and Poverty Condition by District, 2002 18017. Human Developmnet Expenditure by District, 2001 – 2002 188Technical notes 196Computing the indices 197Definitions of statistical terms 203National Human Development Report 2004xi
EXECUTIVE SUMMARYIndonesiaNational Human Development Report 2004Indonesia needs to invest more in human development –not just to fulfil its people’s basic rights but also to lay thefoundations for economic growth and to ensure the longtermsurvival of its democracy. This investment is substantialbut clearly affordable. It has to be based, however, on awidespread national consensus that could be fostered througha National Summit for Human Development.In dismissing the New Order regime Indonesians ultimatelyrejected a bargain that involved trading freedom for bread;their concept of the good life included not only economicgrowth but also rights and freedoms. No longer did they wantto see tradeoffs between growth and social justice, betweengood economics and good politics, between the prosperityof the community and the freedom of the individual.Indonesians now expected public policy to be based on theprinciple that people are not just the means of developmentbut also the ends.This may seem an abstract and philosophical approach.And since the crisis the government has understandably beenpreoccupied with other tasks, notably regaining economicmomentum. So this hardly seems the occasion to ask for newbudgetary expenditures, especially when these are linked toconcepts such as human rights. In fact, however, this broaderview is also very practical, because Indonesia’s economicrecovery will depend not just on economic measures but alsoon the confidence of both the general public – and investors– in the country’s social and political stability.Indonesia’s first National Human Development Report(NHDR) set this discussion in train by making the case for anew social contract that laid out a set of core civil and economicrights and entitlements. This 2004 NHDR builds on thisanalysis by showing just how Indonesia can afford to fulfilthese rights. If the 2001 Report focussed on the ‘why’ ofhuman development, this report examines the ‘how’ and the‘how much’.The state of human developmentThe NHDR also tracks Indonesia’s economic and socialprogress. It shows how Indonesia has continued its falteringrecovery from a financial collapse in 1997 that triggered awhole series of upheavals – economic, social and political.This has been reflected in the country’s human developmentindex (HDI) which fell between 1996 and 1999 and then roseagain in 2002. The average HDI value for Indonesia in 2002 is66, though this masks a considerable variation across thecountry – ranging from 76 in East Jakarta to 47 in the districtof Jayawijaya in Papua.The increase in the HDI corresponds to improvements inmost social indicators. Adult literacy, for example, continuesto rise in response to the increase in school enrolment: by2002, 90% of the population aged 15 or over could read andwrite. Other indicators have also registered progress. Thusthe infant mortality rate continues to come down and childmalnutrition has also declined – from 35% in 1996 to 27% in2002.Improvements in the HDI have been accompanied byreductions in poverty. Between 1999 and 2002 the proportionof people living in income poverty fell from 23% to 18%.However this ‘headcount’ poverty rate disguises the fact thatthere is considerable movement in and out of poverty: betweenone-third and one-half of the population can fall below thepoverty line. The data on income poverty also fail to reflectthe fact that people can be deprived in many other waysbeyond having insufficient income: they may lack education,for example, or be in poor health, or live in an unsafe andinsecure environment. These deprivations are better reflectedin the human poverty index (HPI). Between 1999 and 2002 theHPI also registered an improvement, though falling by asmaller proportion – from 25.2% to 22.7%.Indonesia’s level of income poverty may have fallen backto its pre-crisis level, but the rate is still high, and the fact thatit has not fallen further is partly because economic growthhas been slow. Indonesia is the only crisis-hit country in Asianot to have bounced back to its previous level of growth:while annual economic growth in the early 1990s was typicallyaround 7% or 8%, growth subsequently has only been around4%. As a result, finding work has become more difficult, withopen unemployment in 2002 at 9.1%.Gender issuesIn principle, women in Indonesia have the same rights asmen and have certainly made progress in terms ofemployment: women’s labour force participation rate has beenrising, reaching 38% in 2002. In education too, girls haveseen an increase in opportunities: at the primary level, boysand girls now enrol in equal numbers, and at the juniorsecondary level there appear to be more girls than boys. AtNational Human Development Report 2004 1
Page 2 and 3: NationalHuman DevelopmentReport 200
Page 4 and 5: ForewordIndonesia has made critical
Page 6 and 7: AcknowledgementsThis Report is a re
Page 8: AbbreviationsAPBDAPBNASEANBAPPENASB
Page 11: TABLES2.1 - Comparison of per capit
Page 15 and 16: to meet the Millennium Development
Page 17 and 18: Chapter 1Indonesia in transition:To
Page 19 and 20: The place of human development in I
Page 21 and 22: Chapter 2The state of human develop
Page 23 and 24: Figure 2.4 - Map of human developme
Page 25 and 26: Figure 2.4 - Social indicators, 197
Page 27 and 28: of income and corporate taxes has r
Page 29 and 30: Figure 2.10 - GDP growth, 1990-2003
Page 31 and 32: Table 2.4 - Proportion of total bri
Page 33 and 34: In addition, the overall sense of p
Page 35 and 36: themselves. On this basis Indonesia
Page 37 and 38: Box 3.2 - Pathways to human develop
Page 39 and 40: Table 3.3 - Infant mortality rate a
Page 41 and 42: poor is a clear recognition that de
Page 43 and 44: educing the infant mortality rate m
Page 45 and 46: assuming that 1.3 trillion would co
Page 47 and 48: The national figure would certainly
Page 49 and 50: expenditure. In practice, it would
Page 51 and 52: Table 4.2 - Provincial breakdown of
Page 53 and 54: administration, plus an allowance f
Page 55 and 56: Figure 4.5 - Ratio of salaries of p
Page 57 and 58: Appendix to Chapter 4Health and edu
Page 59 and 60: The third is the ‘Special Fund’
Page 61 and 62: Chapter 5Rethinking fiscal prioriti
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At the very outset, however, it sho
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enforcement particularly for person
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Another risk from decentralization
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Box 5.2 - Variations in poverty con
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physical security - which contribut
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centre, for example, played a signi
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BibliographyAbidin, A. (2002), 1 st
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LPEM-FEUI (2004), Draft Final Repor
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Subbarao, K., A. Bonnerjee, J. Brai
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HUMAN DEVELOPMENT INDICATORS AND IN
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The human development approach brin
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Box 2HDI, HPI-1, GDI and GEMHuman D
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What do the human developmentindice
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Table 1 - Districts making the grea
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Table 2 - Districts with the highes
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Figure 8 - GDI by province, 1999-20
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Figure 12 - HPI by components, 1999
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Technical workshopon human developm
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• The percentage of households wi
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11 Percentage of people with self-t
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Annex 2N a m esGROUP IIChairperson:
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Changes in names due to the formati
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LampungKab. Lampung Selatan (South
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1Human Development Index (HDI)by pr
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3Gender-related Development Index (
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5Human Poverty Index (HPI)by provin
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ProvinceDistrictLiveexpectancy(year
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ProvinceDistrictLife expectancy(yea
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8Gender Development Index (GDI)by d
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ProvinceDistrictProportionof popula
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9Gender Empowerment Measure (GEM)by
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ProvinceDistrictParticipationof wom
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ProvinceKabupaten/KotaDistrictParti
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ProvinceKabupaten/KotaDistrictParti
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ProvinceDistrictPeople notexpected
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ProvinceDistrictInfantmortalityrate
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ProvinceDistrictSchool Participatio
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ProvinceDistrictHouseholds withacce
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ProvinceDistrictReal per capita GRD
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ProvinceDistrictLabourforceparticip
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ProvinceDistrictDevelopmentexpendit
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Computing the indicesThe Human Deve
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Calculating the HDIThis illustratio
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Calculating the GDIAs an example, t
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Definitions of Statistical TermsAcc
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School drop-out rate: the proportio
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