The 4th IRSA International Conference & The 7th PRSCO Summer Institute

20-21 June 2002, Denpasar – Bali
The 4th IRSA International Conference & The 7th PRSCO Summer Institute
“Decentralization, Natural Resource, and Regional Development in the Pacific Rim”
Chair: Budy P. Resosudarmo, Armida Alisjahbana and Bambang P.S. Brodjonegoro
Host: IRSA, PRSCO and FE UI (Faculty of Economics, University of Indonesia)


Implementations of decentralization and natural resource management policies widely vary across countries in the Pacific Rim. There are countries that implement fully centralized government; several adopt fully decentralized government, while many others are in between. In managing its natural resources, there are countries where natural resources are managed by solely the government and there are countries where natural resources are managed by communities surrounding the resources or private sectors. Likewise, there countries in which natural resources are managed jointly by government, private sectors, and communities surrounding the resources.

For many countries in the Pacific Rim, implementation of decentralization and natural resource management policies are among the key policies in achieving regional development. Consequently, it can be seen that some countries have been successfully developed their regions equally, but some other countries have not been able to do that. In later cases, only few regions have been well-developed, while others are still underdeveloped. Therefore, it would be very useful to understand why a certain implementation of decentralization and natural resources management policies have been success in boosting the regional development equally in some countries, and why they are not in other countries.

This conference is meant to be a media where scientists, policy-makers, and practitioners can exchange ideas and learn from each other on how to implement decentralization policies and managing natural resources in their regions.


The conference is a media for scientists, practitioners, and policy-makers to discuss theoretical and practical findings on implementation of decentralization and natural resources management policies in various regions in the Pacific Rim. In the conference, it is hoped that the scientists and policy-makers can create better policies in decentralization and better techniques in managing natural resources in their areas.

Participants will exchange experiences and also build strong networks for future research, policy discussion, and practical collaboration.

Theme and Topics

Decentralization, Natural Resource, and Regional Development in the Pacific Rim

Expected Participants

  • Government officers from various countries in the Pacific Rim
  • Members of Pacific Regional Science Conference Organization (PRSCO)
  • Members of Regional Science Association International (RSAI)
  • Members of Indonesian Regional Science Association (IRSA)
  • People from Non-government organizations
  • Private sectors
  • Staffs of International donors and institutes, such as USAID, AUSAID, JICA, and DFID.

Main AgendaParallel Sessions

Main Agenda

Day 1 : Tuesday, 20 March 2001
09:00-10:30 Plenary Session 1 – “New Development in Regional Science”
Moderator: Dr. Bambang BrodjonegoroProf. Dr. Geoffrey Hewings (University of Illinois)Prof. Dr. Walter Isard (Cornell University and University of Pennsylvania)
12:00-13:00 Registration
13:00-13:10 Opening Ceremony – Prof. Dr. Bambang Bintoro (President of IRSA)
13:10-14:45 Plenary Session 2 – “Current Status and Challenges of Indonesia ’s Regional Economic in the Decentralization Era”
Moderator: Prof. Tommy Firman (ITB)Dr. Ir. Deddy M.M. Riyadi (Bappenas): The Role of the Central Government in a Decentralization EraProf. Dr. Budhy Tjahjati (Urban and Regional Development Institute): Urban and Regional Development Strategy
Prof. Dr. Sjafrizal (Andalas University): Regional Autonomy Impacts in West Sumatera
14:45-16:30 Parallel Session 1
15:00-16:30 Plenary Session 3 – “Indonesian Recovery and Sustainable Development”
Moderator: Prof. Dr. Sadli (UI)Dr. Thee Kian Wie (LIPI): Prospect of a Sustainable Industrial Development based on Historical EvidenceDr. Hadi Soesastro (CSIS): The Implication of World Economic Development on Indonesia
Prof. Dr. Emil Salim (FEUI): Sustainable Development Strategy in Indonesia
16:30-16:45 Tea Break
16:45-17:30 Parallel Session 2
17:00-17:10 Closing Ceremony
17:30-19:00 Break
19:00-21:00 Gala Dinner
Day 2 : Wednesday, 21 March 2001
10:30-10:45 Tea Break
10:45-12:15 Parallel Session 3
12:15-13:15 Luncheon
13:15-14:45 Parallel Session 4
14:45-15:00 Tea Break
16:30-17:00 Closing Remark – Prof. Dr. Iwan Jaya Azis

Parallel Session

Name of presenter(s) is underlined

Day 1 : Tuesday, 20 March 2001
14:45-16:30 Parallel Session 1
Blane D. Lewis (Research Triangle Institute)
Dana Alokasi Umum: Description, Analysis, and RecommendationsJoseph J. Capuno, Thelma C. Manuel (University of Philippines), M.A. Bella T. Salvador
Central Fiscal Transfer and Overall Fiscal Balance: Exploring Alternative Transfer FormulasHariry Hadi (University of Indonesia), Roy Mirazudin
Efek UU Otonomi Daerah (UU No. 22/1999 & UU No. 26/1999) terhadap Percepatan Pemerataan Pembangunan antar Daerah di Jawa Barat (Study on Regional Convergence in West Java)
Euben C. Paracuelles (National University of Singapore)
Fiscal Decentralization, Incentives and Growth in Philippines
16:45-17:30 Parallel Session 2
Track A: “Decentralization and Regional Economy II”
Moderator: Imron Bulkin
Anne Booth (Institute for South East Asian Studies)
The Current Regional Crisis in Indonesia: Were Economic Policies to Blame?Suprayoga Hadi (BAPPENAS)
Assessing the New Decentralization Policy in Indonesia: Inconsistent or Incomplete Framework
Joseph J. Capuno (University of Philippines)
Estimating the Income Elasticity of Local Government Revenues and Expenditures in the Philippines under Decentralization
B. Raksaka Mahi (University of Indonesia)
Push Factors of Regional Development in Indonesia
Track B: “Population and Employment”
Moderator: Tubagus FeridhanusetyawanChris Manning (Australia National University)
Labor Markets and the East Asian Economic Crisis: Lessons fromIndonesia, Thailand, and KoreaD.S.Priyarsono (Bogor Institute of Agriculture), Hadi Sumarno
Perubahan Laju Migrasi antar Wilayah sebagai Dampak Kebijakan Otonomi Daerah
Rahmah Ismail (Universiti Kebangsaan Malaysia)
Regional Labor Mobility and Output Growth of the Manufacturing Sector: A Case of Indonesian Labor in Malaysia

Idris Jajri (University of Malaya)
Wage Competitiveness and Foreign Direct Investment in the ASEAN Region
Track C: “Sustainable Development Framework for Indonesia”
Moderator: N. S. CoorayPeter Gardiner
Population Issues on Sustainable Development Framework for IndonesiaHastu Prabaatmaja (Bandung Institute of Technology)
Urbanizationand Sustainable Development in Indonesia
Armida Alisjahbana (Padjajaran University)
Empirical Experience in Green National Accounts Measurement for Indonesia
David R. Holst (Mills College), Iwan J. Azis
Recovery and Growth in Indonesia: Scenarios for Sustainable Development DavidR. Holst 
Day 2 : Wednesday, 21 March 2001
10:45-12:15 Parallel Session 3
Track A: “Decentralization and Regional Economy III”
Moderator: Yuswandi TemenggungSid Saltzman (Cornell University)
Exploring Multidimensional Affordable Planning for Regional DevelopmentM. Handry Imansyah (Lambung Mangkurat University)
An Experiment of Small Region Input-Output Model: A Fundamental Economic Structure Approach to Kabupaten Hulu Sungai Tengah

Kosuke Mizuno (Center for South East Asian Studies, Kyoto University)
Economic Crisis and Social Safety Net Programs at Kemang Village in West Java

Manash Chatterji (State University of New York at Binghampton)
Globalization, Structural Change and Regional Development
Track B: “Investment, Industry and Trade”
Moderator: Luky Eko WuryantoFredrick Sjoholm (National University of Singapore)
Trade Policy and Manufacturing Agglomeration in Indonesia
Kai Kaiser (London School of Economics)
Indonesia’s Industrial Transformation Revisited

Ari Kuncoro (University of Indonesia)
Decentralization,Corruption, and Economic Growth: Impact of Licensing Decentralization on Manufacture Growth

Bambang P.S. Brodjonegoro (LPEM– FEUI), Fauziah Swasono, MT
The Role of Free Trade Zone in Indonesia Economy: A Case of Batam Island
Track C: “Resources and Environmental Management I”
Moderator: Agus P. SariIda Aju Pradnja Resosudarmo (CIFOR)
Forest and Regional Autonomy: Challenges of Sharing the Profits and Pains
Untung Iskandar (Ministry of Forestry)
The New Role of R & D in Forest Management to Enhance Sustainable Development
Banjar Yulianto Laban (Lore Lindu National)
Propose Application of the Principle of Nature Conservation in Autonomy

Virza Sasmitawijaya (NRM)
Valuation of Dayak Benuaq Customary Forest Management Systems (CFMS in East Kalimantan)
13:15-14:45 Parallel Session 4
Track A: “Governance and Institutional Development”
Moderator: B. Raksaka MahiNobuhisa Takeda (JICA)
Institutional Analysis of Regional Development with Stakeholder ParticipationLuc Spyckerelle (GTZ)
Capacity Building for Local Development Planning

Asia Foundation

Track B: “Agriculture and Rural Development”
Moderator: Sudarto SudarnoC. Peter Timmer (University of California, San Diego)
Indonesia’s Food Security in an Era of Decentralization: Historical Lessons and Implications for PolicyIskandar Panjaitan (University of Tokyo)
An Assessment of the Roles of Indonesia Agriculture to the National Economy
Budy P. Resosudarmo (BPPT & University of Indonesia)
The Economy-Wide Impact of the Integrated Food Crop Pest Management in Indonesia
Tatsuhiko Kawashima (Gakushuin University)
Village Development: A Practical Example of Northern Thailand’s Case 
Track C: “Resources and Environmental Management II”
Moderator: Drajat WibowoFrank Jotzo and Agus Sari (Pelangi Research Institute)
Modelling International Emissions Trading with Caps on Buyers and SellersBudiono (Padjadjaran University)
Effects of Trade Liberalization and Foreign Direct Investment on Green Houses: The case of Indonesian Manufacturing Sectors

Douglas Storey (John Hopkins University), Anugerah Montji, Kasim Moosa
The Role of Public Communication in Sustainable Development Attitudes and Behaviors Related to Community-Based Management of Coral Reef Resources in Riau, South Sulawesi and West Papua

Budy Wiryawan (Center for Coastal and Marine Resources Studies, IPB), Ali Kabul Mahi, Harris Hasyim
Achieving Coastal Resources Management: A Case Study of Lampung Province,Indonesia

This Institute/conference is jointly organized by:

  • Indonesian Regional Science Association (IRSA)
  • Graduate Program in Economics, Faculty of Economics-University of Indonesia
  • Pacific Regional Science Conference Organization (PRSCO)

Advisory Committee:

  • Prof. Dr. Bambang Bintoro S.
  • Prof. Dr. Iwan Jaya Azis
  • Prof. Dr. Yoshiro Higano

Organizing committee:

  • Dr. Armida S. Alisjahbana
  • Dr. Bambang P.S. Brodjonegoro
  • Dr. Budy P. Resosudarmo
  • Dr. Luky Eko Wuryanto

Coordinator in-charge:

  • Santi B. Handayani, SE


  • Setiawati Shinta, SS