IRCGE–Indonesia

 

 

 

 

 

 

 

 

 

 This project, which was started in mid 1996, implemented and extended the inter-regional computable general equilibrium model for Indonesia originally developed by Luky Eko Wuryanto for his dissertation at the Cornell University.  In this project, I collaborated with Dr. Luky Eko Wuryanto of the Indonesian National Development Planning Agency and, later on, with Prof.  Suminori Tokunaga of the University of Tsukuba.   The model is specify to analyze the impact of fiscal decentralization in Indonesia.

The IRCGE has two macro regions, Java and Outside-Java regions.  Within these two macro regions, there are seven micro regions.  Java consists of Western Java, Central Java, and Eastern Java regions.  Outside-Java is divided into Sumatra, Kalimantan, Sulawesi, and Other Islands regions.  The macro and micro linkages are as follows:
The IRCGE has two macro regions, Java and Outside-Java regions.  Within these two macro regions, there are seven micro regions.  Java consists of Western Java, Central Java, and Eastern Java regions.  Outside-Java is divided into Sumatra, Kalimantan, Sulawesi, and Other Islands regions.  The macro and micro linkages are as follows:

The production sectors are divided into Java and Outside-Java; for each macro regions, there are 15 different production sectors which are (1) Food Crop, (2) Estate Crop, (3) Livestock, (4) Forestry, (5) Fishery, (6) Mining, (7) Food Processing, (8) Textile, (9) Wood Processing and Construction, (10) Paper and Metal Product, (11) Chemical and Basic Metal Product, (12) Utility, (13) Trade, Hotel, and Restaurant, (14) Transport and Communication, and (15) Other Services.  Each production sector has two factors, labor and capital.  Labor and capital, however, may be derived from the seven micro regions.  For example, factors in the Java Food Processing are the Western Java Labor and Capital, Central Java Labor and Capital, and Eastern Java Labor and Capital while factors in the Outside-Java Food Processing are the Sumatra Labor and Capital, Kalimantan Labor and Capital, Sulawesi Labor and Capital, and Other Islands Labor and Capital.

In each micro region, there is a single household that owns labor and capital.  Hence, in this IRCGE, there are seven household categories, corresponding to the regional definitions noted earlier.
Publications

 

Tokunaga, S., B.P. Resosudarmo, L.E. Wuryanto, N.T. Dung. 2003.   “An Inter-regional CGE Model to Assess the Impacts of Tariff Reduction and Fiscal Decentralization on Regional Economy: The Case of Indonesia.”  Studies in Regional Science, 33(2): 1-25.

 

Resosudarmo, B.P., L..E. Wuryanto, G.J.D. Hewings, and L. Saunders. 1999.   “Decentralization and Income Distribution in the Inter-Regional Indonesian Economy.”  G.J.D. Hewings, M. Sonis, M. Madden and Y. Kimura (eds.), Advances in Spatial Sciences: Understanding and Interpreting Economic Structure, Germany: Springer-Verlag, Heidelberg.
To option the model, please contact: budy.resosudarmo@anu.edu.au