This paper examines the rise of fintech lending in Indonesia, using a dataset of more than 139,000 individual credit records representative of the full spectrum of consumer loans in the country. The analysis reveals that fintech lending has become deeply embedded in Indonesia’s financial...

Indonesia’s services sector has emerged as a key driver of economic growth and employment. Services have also been the driving force of global trade and investment. Advances in technology are expected to further improve the tradability of services, creating new opportunities for Indonesia....

Informality and job quality are among Indonesia’s most pivotal development challenges. Indonesia’s pace of formalization has consistently lagged economic growth, leaving large swaths of society outside the reach of regulation and social protection. This report is one of a three-part series...

We estimate the causal effect of access to clean water sources on educational outcomes in Indonesia. Using the longitudinal Indonesian Family Life Survey (IFLS) panel dataset, which follows the same individuals from 1993 to 2014, and applying household fixed effects allows us to identify the...

This study evaluates the causal impact of Indonesia's Power Transmission Development Project on regional economic development. Employing the Generalized Synthetic Control Method on district-level satellite data, we find a statistically significant increase in economic activity (p=0.033), which...

This study is the first to analyse the determinants and wage impacts of vertical educational mismatches in the wage sector in Indonesia. This study is also the first to examine the wage effect of vertical educational mismatch based on the fields of study, gender, and spatial conditions of the...

Most impact assessments of agricultural training evaluate one-time interventions over short time horizons. However, farmers may initially show enthusiasm for a new technology but subsequently dis-adopt it after a trial period, while others may adopt practices gradually over time. This study...

We estimate the causal effect of access to clean water sources on educational outcomes in Indonesia. Using the longitudinal Indonesian Family Life Survey (IFLS) panel dataset, which follows the same individuals from 1993 to 2014, and applying household fixed effects allows us to identify the...

Despite the growing role of business incubators in fostering digital startups in emerging economies, the mechanism through which business incubator characteristics, specifically relational capital and structural embeddedness, influence startup innovation performance remains underexplored,...

Informality and job quality are among Indonesia’s most pivotal development challenges. Indonesia’s pace of formalization has consistently lagged economic growth, leaving large swaths of society outside the reach of regulation and social protection. This report is one of a three-part series...

Aside from horizontal structural reforms, raising public investment should be a key pillar of Indonesia’s pursuit of its Vision 2045. However, this must be complemented by policies aimed at enhancing the efficiency of public investment, thereby maximizing its impact. Mobilizing additional...

Economic growth remains strong despite adverse shocks. Inflation is well within its target band, and the financial sector broadly resilient. Downside risks stem from trade policy shocks, prolonged uncertainty, and global financial market volatility. Ensuring durable and high-quality growth will...

We examine health persistence between parents and their adult children in Indonesia using both subjective and objective health measures including biomarkers. Using Principal Components Analysis, we estimate the interegenerational persistence of the combination of these measures to be 0.30,...

Which poverty context matters for long-term outcomes-family or community, economic or social? We construct a measure of poverty along these dimensions and analyze individual-level longitudinal data spanning 21 years in Indonesia to examine the long-term outcomes associated with different types...

This paper investigates credit risk management as a dynamic system. Panel Vector Autoregression (PVAR) is employed to model interrelationships among four key components: Non-Performing Loans (NPLs), Loan Loss Provision (LLP), loan charge-off (LCO) and capital. The Cost-to-Income ratio (CIR) and...

Duflo (2001) exploits a 1970s schooling expansion in Indonesia to estimate individual-levelschooling and labor impacts and the returns to schooling. I correct data errors, adjust for potentialsources of bias, follow up later in life, and check sensitivity to two specification choices that...

We discuss the trust-building process as well as trust violation and distrust in financing for small businesses at Islamic and conventional banks, a topic that receives little attention in the literature. We interview managers of Islamic and conventional banks in Indonesia. We find that the...

This paper examines how parental migration interacts with unconditional cash transfers (UCTs) for education by analyzing Indonesia's Smart Indonesia Program (PIP), which provides educational grants to children from poor households. Using a difference-in-differences approach and nationally...

Indonesia’s forest ecosystems are critical for sustaining economic growth, human well-being, and biodiversity conservation. Despite covering less than 1 percent of the Earth’s landmass, Indonesia contains 10 percent of the world’s tropical rainforests, making it the third largest such area...

This Country Program Evaluation assesses the World Bank Group’s support to Indonesia between FY 2013 and FY23. The evaluation period included three country strategies: the FY13–15 Country Partnership Strategy (CPS), the FY16–20 Country Partnership Framework (CPF), and the ongoing FY21–25...

This study examines the impact of financial inclusion on income inequality across 33 provinces in Indonesia from 2015 to 2023, while controlling for human development and investment-related factors. Specifically, it investigates the effects of the Financial Inclusion Index (FII), Human...