A panel data analysis of nonlinear government expenditure and income inequality dynamics in a macroprudential policy regime was conducted on a panel of 15 emerging countries from 1985–2019, where there had been a non-prudential regime from 1985–1999 and a prudential regime from 2000–2019. The paper explored the validity of the nonlinearity between government expenditure and income inequality in the macroprudential policy regime as well as the threshold level at which excessive spending reduces income inequality using the Bayesian spatial lag panel smooth transition regression (BSPSTR) and fix effect models. The BSPSTR model was adopted due to its ability to address the problems of heterogeneity, endogeneity, and cross-section correlation in a nonlinear framework. Moreover, as the transition variable often varies across time and space, the effect of the independent variables can also be time- and space-varying. The results reveal evidence of a nonlinear effect between government spending and income inequality, where the minimum level of government spending is found to be 29.89 percent of GDP, above which expenditure reduces inequality in emerging countries. The findings confirmed an inverted U-shaped relationship. The focal policy recommendation is that fiscal policy decisions that will reinforce the need for more emphasis on education and public expenditure on education and health, as important tools for improving income inequality, are crucial for these economies. Caution is needed when introducing macroprudential policies, especially at a low level of government expenditure.
The Trans Sumatra Toll Road (TSTR) is a mega toll road project with an assignment State-Owned Enterprise (SOE) scheme in Indonesia. In its development, TSTR has several limitations, including funding, low investment feasibility and the un-optimum implementation of land value capture (LVC). This has the impact of delaying the completion of project development, decreasing the performance of toll road developer companies and even causing bankruptcy. LVC is an alternative funding scheme proven successful in other countries such as Hongkong, England and Vietnam. Several transportation projects based on transit-oriented development have successfully achieved profits using the LVC method. With a low project feasibility, the implementation of the Road Plus Property Developer (RPPD) business model is expected to be a solution to improve investment performance in the TSTR project. RPPD is defined as an assignment scheme toll road business model based on LVC implementation. This research aims to develop policies for implementing the RPPD business model on toll road SOE-assigned schemes. The data was collected by in-depth interviews with experts in two stages. The data analysis method used is Soft System Methodology (SSM). This research produces two recommended actions: ratification of the Presidential Regulation regarding the implementation of LVC and institutional transformation of regionally owned business entities in the property sector. It is hoped that implementing the RPPD policy will become a priority in completing the TSTR project.
This research aims to determine the factors driving the success of four large cities in Indonesia in implementing Transit-Oriented Development (TOD) infrastructure policies beyond the eight TOD 3.0 Principles. Only a few studies like this have been conducted. The research uses qualitative methods and is supported by in-depth interviews with stakeholders, community leaders, community groups, and service users. The research findings reveal six themes: policy dialogue, organizational structure and coordination, changes in community habits, resources, dissemination and communication, and transportation and connectivity services. The characteristics of the community in the study area that prioritize deliberation are important determinants in policy dialogue and are involved in determining policy formulation. The city government has established a comprehensive organizational and coordination structure for the village and sub-district levels. The Government controls infrastructure development activities, establishes a chain of command and coordination, and encourages people to change their private car usage habits. The city government combines all this with the principle of deliberation and conveys important information to the public. The research highlights the differences in TOD implementation in Indonesia compared to other countries. Specifically, the existence of policy dialogue and the direct involvement of community members influence the level of program policy formulation and are crucial in controlling urban infrastructure development.
This research aims to explore the impact of government policies to promote mass tourism in Bali. Qualitative method with the support of a phenomenological approach and in-depth interviews and FGD. The Butler tourism area life cycle model theory is used to evaluate the impact of tourism on land use and cultural conflict with six stages of destination development, namely exploration, involvement, development, consolidation, stagnation, and decline or rejuvenation. The findings reveal that Bali has experienced all stages of Butler’s model. From 1960–1970, Bali was in the exploration phase, offering tourists authentic experiences. At the beginning of 1970–2000, Bali had entered five phases marked by rapid tourism growth. Now, Bali reached a consolidation phase with a focus on managing tourism quality. Now, Bali is entering a phase of stagnation, facing challenges such as overcrowding and environmental degradation. Bali is at the crossroads between phases of decline and rejuvenation, with efforts to overcome environmental problems and diversify tourism products. This study concludes that mass tourism has significant positive and negative impacts on tourist destinations. Although it can improve the local economy and preserve culture, it can also cause environmental damage and cultural conflict. The Bali government’s policy strategy for the future is to overcome cultural conflicts including tourist education, sustainable tourism development, empowerment of local communities, enforcement of regulations, and intercultural dialogue. The implementation of this policy strategy can be carried out effectively to manage cultural conflicts towards a sustainable Bali tourism future.
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