Journal of Business and Political Economy : Biannual Review of The Indonesian Economy

The Role of International Monetary Fund (IMF) Programs in Promoting Gender Equality

2026-01-18T13:38:53+07:00

This study examines the role of the International Monetary Fund (IMF) in promoting gender equality within its macroeconomic stabilization programs. It analyzes whether the IMF’s gender mainstreaming strategy genuinely advances women’s economic empowerment or remains constrained by traditional fiscal discipline and market-oriented objectives. Using a qualitative literature review, the paper synthesizes academic studies, IMF policy documents, and institutional reports published between 2015 and 2024, the period during which gender was formally integrated into IMF frameworks. Rather than producing new statistical analysis, this research reviews existing empirical evidence to assess how IMF-supported reforms influence gender outcomes. The findings indicate that although the IMF increasingly recognizes gender equality as “macro-critical” and has introduced tools such as gender-responsive budgeting and gender impact assessments, implementation remains uneven. In several low- and middle-income countries undergoing fiscal consolidation, particularly those heavily dependent on public-sector employment and limited social protection systems, austerity measures have reduced spending in health, education, and childcare—sectors crucial to women’s labor force participation. While gender-focused initiatives show potential, their effectiveness depends on institutional capacity and political commitment at the national level. The study concludes that meaningful progress requires a structural shift from austerity-centered stabilization toward inclusive macroeconomic governance, including counter-cyclical social spending, sustained investment in care infrastructure, and systematic integration of gender metrics into fiscal policy to strengthen long-term economic resilience and equitable development.

Keywords: Empowerment, Fiscal Policy, Gender Equality, Imf, Macroeconomics

JEL : J16, F33, H50

Institutional Analysis of Downstreaming Policies and Indonesia's Political Economic Resilience in Global Geopolitical Fragmentation

2026-02-15T19:03:05+07:00

This study aims to analyze institutional dynamics in Indonesia's political economy changes and their implications for downstreaming policies and national economic resilience amid global geopolitical fragmentation, including escalating competition between major powers (US and China) and trade disputes at the WTO. Downstreaming of natural resources is positioned as a strategic instrument to increase domestic economic value, strengthen industrialization, and improve Indonesia's bargaining position in the global supply chain. The methods used in this study are descriptive qualitative research with a historical-institutional analysis and policy analysis approach. Data was obtained from various sources, including regulations related to downstreaming and mineral resources, books, academic publications, government policies, and other relevant sources. The results show that strengthening the role of the state in the management of strategic resources enables the implementation of more offensive downstreaming policies, such as the ban on nickel ore exports, which has triggered increased investment in smelters and significant growth in the basic metal processing industry. Downstreaming has proven to expand the domestic industrial base and contribute to economic resilience. However, the effectiveness of the policy is highly dependent on the quality of the bureaucracy, transparency of governance, and Indonesia's capacity to manage external geopolitical pressures. As a result, downstreaming can serve as a strategic pillar of sustainable economic development as well as an instrument of national resilience in an increasingly fragmented global era.

Keywords: Downstreaming, Political Economy, Economic Resilience, Global Geopolitics

JEL: A11, A13

Between Profit and Planet: A Critical Examination of Sustainability Practices in Indonesia’s Muslim Fashion Industry

2025-12-13T14:09:45+07:00

In response to the climate crisis, the fashion industry remains a significant contributor to global carbon emissions. This study explores how Islamic ethical principles can inform sustainable business practices in Indonesia's modest fashion sector, which serves the world's largest market of Muslim-majority consumers. Employing quantitative carbon footprint assessments of six Muslim fashion brands across different enterprise scales. Data were collected from Instagram–to categorize brands based on market size–and Shopee, providing product-specific information on materials and sales volumes. Emissions were calculated following the Greenhouse Gas Protocol (2004), using DEFRAâ€™s standardized emission factors for apparel. The result reveals variability in emissions among brands, highlighting the importance of material choices and transparency. To address these challenges, this study introduces the HIFZH-Model, a faith-inspired sustainability model, along with a 20-point checklist for aligning business practices with Islamic environmental values. This research offers a culturally relevant model for fostering low-carbon entrepreneurship within Muslim communities.

Reassessing the Political Economy of Growth in ASEAN

2026-01-27T11:14:49+07:00

This study aims to analyze the interplay of political stability, government effectiveness, and inflation on economic growth in ten ASEAN countries during the 2019-2023 period. The research employs a quantitative approach using panel data regression analysis based on secondary data from the World Governance Indicators (WGI) and the World Development Indicators (WDI). The findings reveal that political stability has a negative and significant effect on economic growth, whereas government effectiveness exerts a positive and significant influence. Inflation shows a negative but insignificant effect, indicating that price stability in the region remains relatively well-maintained. Collectively, the three variables explain 57.7% of the variation in economic growth, underscoring the importance of institutional factors in driving economic performance. The results suggest that government effectiveness serves as the main channel through which political stability affects economic growth. Policy implications highlight the need for bureaucratic reforms, improvement in public governance quality, and regional cooperation to strengthen institutional capacity within ASEAN. This study contributes to the political economy of development literature by emphasizing the interaction between political and institutional factors in influencing regional economic growth.

Keywords: Political Stability, Government Effectiveness, Inflation, Economic Growth, ASEAN.

JEL: E02, O43, O53, P16.

Applied Big Data Driven Study on Shock Absorption and Tolerance Bands of Staple Food Commodities Price Volatility in East Java

2025-09-03T09:08:22+07:00

This study investigates the day-to-day volatility dynamics of five staple food commodities in East Java which are Red Bird’s Eye Chili Pepper, Medium Rice, Bendera Powdered Milk, Free-Range Chicken Meat, and Commercial Chicken Eggs. By utilizing daily price data from January 1, 2021, to February 2, 2025, collected via big-data scraping of a government price monitoring website. A GARCH model with Student-t innovations is fitted to each return series, from which one-day 95% Value-at-Risk (VaR) thresholds are derived to establish an evidence-based "tolerance band" for policy intervention. The results show that Red Bird’s Eye Chili Pepper has the widest band, with an allowable daily drop of 2.5% and a rise of 10.14%, whereas Bendera Powdered Milk exhibits the narrowest range. All five series display extreme volatility persistence coefficients are near or above 1, but a critical finding is that the markets for Medium Rice and Free-Range Chicken Meat are not shock absorbent, with persistence values exceeding 1. This indicates that any market disruption has a permanent effect on their future volatility, pointing to deep structural inefficiencies. These empirically derived VaR-based guardrails provide a quantitative framework for timely market stabilization, while the persistence analysis highlights the need for long-term structural reforms, particularly for the rice and chicken sectors.

Keywords: food price volatility; GARCH; value-at-risk; big data.

JEL: C54, Q11, Q1