Download the Indonesia Human Development Report 2004. - UNDP

Computing the indicesThe Human Development Index (HDI)The HDI is based on three components: longevity, asmeasured by life expectancy at birth; educationalattainment, as measured by the combination of adultliteracy rate (two-thirds weight) and mean years ofschooling (one-third weight); and standard of living, asmeasured by adjusted per capita expenditure (PPP Rupiah).The index is defined as the simple average of the indicesof those three components:HDI = 1/3 (Index X1 + Index X2 + Index X3)Where X1, X2 and X3 are longevity, educational attainment andstandard of living respectively.For any component of the HDI, individual index canbe computed according to the general formula:Index X(i,j) = (X(i,j) - X(i-min)) / (X(i-max) - X(i-min))Where :X(i,j) : Indicator ith for region jX(i-min) : Minimum value of XiX(i-max) : Maximum value of XiLongevityLongevity is measured by using the indicator of lifeexpectancy at birth (e 0). The e 0presented in this report isbased on the extrapolation of the e 0figure based on end-1996 and end-1999 situation as the correspondence ofthe infant mortality rate (IMR) for the same period. Forthis publication, the estimation of IMR at provincial levelis calculated based on data series from 1971 census, 1980census, 1990 census, and the pooled data of 1995 surveybetween census (SUPAS) and 1996 socio-economicsurvey (SUSENAS). The numbers resulted from 2000census also used to extrapolate e 0and IMR of the year2002. The calculation method follows the indirecttechnique based on two basic data - i.e. the average numberof live births and the average number of children still living- reported from each five-year class of mother agesbetween 15 - 49 years old. By applying this technique,there will be seven estimation points for each timereference from each data source. As a result there are 28IMR estimations for all time references from which theestimation of IMR is calculated. It is done after theTable 1Maximum and minimum value of each HDI indicatorHDI Maximum Minimum NotesComponent Value ValueLife Expectancy 85 25 UNDPStandardLiteracy Rate 100 0 UNDPStandardMean Years of 15 0 UNDP usesSchoolingcombinedgrossenrolmentratioPurchasing Power 737,720 a) 300,000 UNDP uses(1996) adjusted real360,000 per capita(1999) b) GNPNotes:a) Projection of the highest purchasing power for Jakarta in 2018(the end of the second long term development period) after adjustedwith Atkinson formula. This projection is based on the assumptionof 6.5 percent growth in purchasing power during the period of1993-2018.b) Equal to two times the poverty line of the province with thelowest per capita consumption in 1990 (rural area of South Sulawesi).For 1999, the minimum value was adjusted to Rp. 360,000. Thisadjustment is necessary, as the economic crisis has drasticallyreduced the purchasing power of the people. It is reflected by theincrease in poverty level and the decrease in the real wages. Theadditional Rp. 60,000 is based on the difference between the “oldpoverty line” and the “new poverty line” that is amounted toaround Rp. 5,000 per month (= Rp. 60,000 per year).omission of any unreliable figures reported by the eldestand the youngest maternal groups.The estimation of IMR at regency/city level is basedon the pooled data from SUPAS 1995 and SUSENAS 1996.This pooled data is considered to be a reliable data sourcebecause it covers around 416,000 households. Howeverthe indirect technique used in this estimation producesthe estimate of four years before the survey time. Tocalculate the estimate points for 1999, the estimate figurebased on the pooled SUPAS 1995 and SUSENAS 1996data is projected after taking into account the provincialtrend of the respected region and the inter regencies/citiesvariation within each respected province. Meanwhile, forthe year 2002, the results of 2000 census are used at theregion/city level.National Human Development Report 2004197