ABSTRACT

This chapter provides insights into the effectiveness and efficiency of Indonesia's public employment programmes, in order to develop better understanding of the ability of the government to administer job creation programmes in the context of financial and economic downturn. Particular focus is given to understanding employment quality, the inclusion of vulnerable groups and the social protection function of such programmes. The chapter looks into these issues within the context of the job creation component of Indonesia's 2009 fiscal stimulus package, which used the government's existing programme architecture to provide an automatic stabiliser function and stabilise aggregate demand through channelling additional government budgetary resources to these programmes. It analyses the use of public sector job programmes in Indonesia in 2009 in the aftermath of the global financial crisis (GFC). The structure of the household, including the size, income and the number of wage-earners are important factors to be considered when assessing the effectiveness and efficiency of programmes with social protection functions.