Welfare Regime Change in Developing Countries: Evidence from Indonesia

Abstract

This article discusses welfare regime change using two theoretical frameworks, i.e. welfare regimes in developing countries and institutional change. Using these theories as a loop to look at the Indonesian case, it suggests that the Indonesian welfare regime has experienced 'flourishing' development and changes. The regime has changed three times, stimulated by economic growth, global market pressures and social policy 'universalization'. The last two changes have been loaded with thorny layering, to which the government introduced numerous government-formal social programmes on top of community-based informal welfare arrangements. This causes complicated consequences, including the problem of informal and formal welfare institutions harming each other. The discussion of the Indonesian case leads to a better understanding of the characteristics and changes of welfare regimes in developing countries, for which there is currently a research gap.

Healthcare decommodification in decentralization context: Reviewing the ideational constructions of “classless hospital policy” initiatives in Kulon Progo Regency, Indonesia

“…Additionally, the phenomenon of contestation between the central and local government in controlling the healthcare system in Kulon Progo regency has successfully confirmed the findings of Sumarto () in his previous account. He argues that the welfare institutional arrangement in Indonesia commonly fits with layering types in which the central government's social policy program is introduced over the previously established institution.…”

“…This institutional change aimed to extend the formal health insurance feature for the low‐income citizens under the Public Health Maintenance scheme ( Jaminan Pemeliharaan Kesehatan Masyarakat —JPKM). “JPKM was designed to mitigate the adverse effects of declining oil revenues on social spending, and it allocated funds to help indigent citizens to cover healthcare costs.” (Fossati, , p. 310) Surprisingly, a year after World Bank published a report stating that Indonesia was projected to reach an economic growth rate of 7.8 percent until 2001 (Sumarto, ), the wave of Asian financial crisis quickly hits Indonesia in 1998, which then ultimately brought down Soeharto reign.…”

Social Capital and Multi-Stakeholders Cooperation as a Foundation of Corporate Social Responsibility

“…Gotong-royong means a form of action which refers to the principle of helping each other (Seavoy, 1977), moral obligation and reciprocity (Bowen, 1986), and a collective action. In other terms, Gotong-royong is informal welfare provision (Sumarto, 2017). On the Kampung Suka Jadi social conditions, Gotong-royong as a manifestation of social capital can be traced in two form, namely as an act together, and as a financial assistance.…”

Governing Alternative Resources for Social Policy: A Welfare Political Challenges on Mixed-Welfare Arrangements

“…This kind of scheme fosters a spirit of kinship and mutual assistance in an attempt to distribute the decent house for those less fortunate. Such exisisting house renovation/rehabilitation traditions was later "layered" with the formal institution namely "Tresno Tonggo" programs by former Regent, Toyo Dipo Santoso, on top of existing tradition without resulting in substantial change on the traditions (Sumarto, 2017). Nonetheless, it was not comprehensive, but flooring project only.…”

“…A several of studies (Aspalter, 2006;Croissant, 2004;Gough, 2013;Rodhes and Natali, 2003;Powell and Barrientos, 2004;Sumarto, 2017;Torheim, 2013) have provided important information that the welfare system in Indonesia are common fits with complex of social services (Moreno, 2010) 'has become a promising avenue to redress the government insufficiency as well as stimulate a public sector more responsive to social needs' (Shi, 2016: 464). In another account (Schartau, 2009;Warington, 1995) refined the mixed-welfare term as welfare plurarism which both of these are used interchangeably.…”